Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | ||
Nov. 02, 2013 | Nov. 29, 2013 | Nov. 29, 2013 | |
Common Stock Class A | Common Stock Class B | ||
Entity Registrant Name | 'WET SEAL INC | ' | ' |
Entity Central Index Key | '0000863456 | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 2-Nov-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Current Fiscal Year End Date | '--02-01 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 84,722,419 | 0 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 | Oct. 27, 2012 |
In Thousands, unless otherwise specified | |||
CURRENT ASSETS: | ' | ' | ' |
Cash and cash equivalents | $30,084 | $42,279 | $126,343 |
Short-term investments | 35,812 | 67,694 | 0 |
Income tax receivables | 141 | 286 | 660 |
Other receivables | 2,680 | 1,738 | 1,462 |
Merchandise inventories | 42,587 | 33,788 | 46,193 |
Prepaid expenses and other current assets | 13,289 | 13,443 | 5,669 |
Deferred tax assets | 0 | 0 | 20,133 |
Total current assets | 124,593 | 159,228 | 200,460 |
EQUIPMENT AND LEASEHOLD IMPROVEMENTS: | ' | ' | ' |
Leasehold improvements | 87,970 | 90,666 | 102,462 |
Furniture, fixtures and equipment | 65,066 | 62,486 | 66,512 |
Gross equipment and leasehold improvements | 153,036 | 153,152 | 168,974 |
Less accumulated depreciation and amortization | -88,117 | -88,927 | -95,146 |
Net equipment and leasehold improvements | 64,919 | 64,225 | 73,828 |
OTHER ASSETS: | ' | ' | ' |
Deferred tax assets | 0 | 0 | 41,766 |
Other assets | 2,003 | 3,053 | 3,069 |
Total other assets | 2,003 | 3,053 | 44,835 |
TOTAL ASSETS | 191,515 | 226,506 | 319,123 |
CURRENT LIABILITIES: | ' | ' | ' |
Accounts payable b merchandise | 24,623 | 16,978 | 28,128 |
Accounts payable b other | 11,361 | 18,116 | 13,369 |
Accrued liabilities | 24,203 | 26,347 | 24,000 |
Current portion of deferred rent | 3,909 | 2,289 | 2,456 |
Total current liabilities | 64,096 | 63,730 | 67,953 |
LONG-TERM LIABILITIES: | ' | ' | ' |
Deferred rent | 31,092 | 32,136 | 33,378 |
Other long-term liabilities | 1,796 | 1,908 | 1,820 |
Total long-term liabilities | 32,888 | 34,044 | 35,198 |
Total liabilities | 96,984 | 97,774 | 103,151 |
COMMITMENTS AND CONTINGENCIES (Note 6) | ' | ' | ' |
STOCKHOLDERSb EQUITY: | ' | ' | ' |
Paid-in capital | 216,512 | 239,698 | 240,712 |
Accumulated deficit | -130,323 | -119,481 | -33,671 |
Treasury stock, 6,175 shares, 810,768 shares, and 344,801 shares, at cost, at November 2, 2013, February 2, 2013, and October 27, 2012, respectively | -4 | -412 | -72 |
Accumulated other comprehensive loss | -127 | -127 | -4 |
Total stockholdersb equity | 94,531 | 128,732 | 215,972 |
TOTAL LIABILITIES AND STOCKHOLDERSb EQUITY | 191,515 | 226,506 | 319,123 |
Common Stock Class A | ' | ' | ' |
STOCKHOLDERSb EQUITY: | ' | ' | ' |
Common stock | 8,473 | 9,054 | 9,007 |
Common Stock Class B | ' | ' | ' |
STOCKHOLDERSb EQUITY: | ' | ' | ' |
Common stock | $0 | $0 | $0 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 | Oct. 27, 2012 |
Treasury stock | 6,175 | 810,768 | 344,801 |
Common Stock Class A | ' | ' | ' |
Common stock, par value | 0.1 | 0.1 | 0.1 |
Common stock, shares authorized | 300,000,000 | 300,000,000 | 300,000,000 |
Common stock, shares issued | 84,730,594 | 90,541,144 | 90,072,035 |
Common stock, shares outstanding | 84,724,419 | 89,730,376 | 89,727,234 |
Common Stock Class B | ' | ' | ' |
Common stock, par value | 0.1 | 0.1 | 0.1 |
Common stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Common stock, shares issued | 0 | 0 | 0 |
Common stock, shares outstanding | 0 | 0 | 0 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $127,664 | $135,537 | $405,358 | $418,743 |
Cost of sales | 98,715 | 109,492 | 293,526 | 318,293 |
Gross margin | 28,949 | 26,045 | 111,832 | 100,450 |
Selling, general, and administrative expenses | 38,743 | 44,405 | 115,592 | 126,215 |
Asset impairment | 5,061 | 6,456 | 6,919 | 19,035 |
Operating loss | -14,855 | -24,816 | -10,679 | -44,800 |
Interest income | 49 | 35 | 150 | 108 |
Interest expense | -55 | -45 | -163 | -136 |
Interest expense, net | -6 | -10 | -13 | -28 |
Loss before provision (benefit) for income taxes | -14,861 | -24,826 | -10,692 | -44,828 |
Provision (benefit) for income taxes | 49 | -10,047 | 150 | -17,407 |
Net loss | ($14,910) | ($14,779) | ($10,842) | ($27,421) |
Net loss per share, basic (in dollars per share) | ($0.18) | ($0.17) | ($0.13) | ($0.31) |
Net loss per share, diluted (in dollars per share) | ($0.18) | ($0.17) | ($0.13) | ($0.31) |
Weighted-average shares outstanding, basic (in shares) | 83,729,646 | 88,877,993 | 86,028,985 | 88,650,011 |
Weighted-average shares outstanding, diluted (in shares) | 83,729,646 | 88,877,993 | 86,028,985 | 88,650,011 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (USD $) | Total | Common Stock Class A | Common Stock Class B | Paid-In Capital | Accumulated Deficit | Treasury Stock | Accumulated Other Comprehensive Loss |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Jan. 28, 2012 | $241,072 | $9,066 | $0 | $239,000 | ($6,250) | ($740) | ($4) |
Balance, shares at Jan. 28, 2012 | ' | 90,660,347 | 0 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net loss | -27,421 | ' | ' | ' | -27,421 | ' | ' |
Stock issued pursuant to long-term incentive plans | ' | 65 | ' | -65 | ' | ' | ' |
Stock issued pursuant to long-term incentive plans, shares | ' | 651,367 | ' | ' | ' | ' | ' |
Stock-based compensation | 2,596 | ' | ' | 2,596 | ' | ' | ' |
Exercise of stock options | 19 | 1 | ' | 18 | ' | ' | ' |
Exercised of stock options, shares | ' | 6,001 | ' | ' | ' | ' | ' |
Repurchase of common stock | -294 | ' | ' | ' | ' | -294 | ' |
Retirement of treasury stock | 962 | -125 | ' | -837 | ' | 962 | ' |
Retirement of treasury stock, shares | ' | -1,245,680 | ' | ' | ' | ' | ' |
Balance at Oct. 27, 2012 | 215,972 | 9,007 | ' | 240,712 | -33,671 | -72 | -4 |
Balance, shares at Oct. 27, 2012 | ' | 90,072,035 | ' | ' | ' | ' | ' |
Balance at Feb. 02, 2013 | 128,732 | 9,054 | 0 | 239,698 | -119,481 | -412 | -127 |
Balance, shares at Feb. 02, 2013 | ' | 90,541,144 | 0 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net loss | -10,842 | ' | ' | ' | -10,842 | ' | ' |
Stock issued pursuant to long-term incentive plans | ' | 50 | ' | -50 | ' | ' | ' |
Stock issued pursuant to long-term incentive plans, shares | ' | 496,292 | ' | ' | ' | ' | ' |
Stock-based compensation | 1,212 | ' | ' | 1,212 | ' | ' | ' |
Exercise of stock options | 747 | 21 | ' | 726 | ' | ' | ' |
Exercised of stock options, shares | 210,528 | 210,528 | ' | ' | ' | ' | ' |
Repurchase of common stock | -25,318 | ' | ' | ' | ' | -25,318 | ' |
Retirement of treasury stock | 25,726 | -652 | ' | -25,074 | ' | 25,726 | ' |
Retirement of treasury stock, shares | ' | -6,517,370 | ' | ' | ' | ' | ' |
Balance at Nov. 02, 2013 | $94,531 | $8,473 | ' | $216,512 | ($130,323) | ($4) | ($127) |
Balance, shares at Nov. 02, 2013 | ' | 84,730,594 | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($10,842) | ($27,421) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 10,198 | 13,531 |
Amortization of premium on investments | 123 | 0 |
Amortization of deferred financing costs | 81 | 81 |
Loss on disposal of equipment and leasehold improvements | 83 | 550 |
Asset impairment | 6,919 | 19,035 |
Deferred income taxes | 0 | -17,986 |
Stock-based compensation | 1,212 | 2,596 |
Changes in operating assets and liabilities: | ' | ' |
Income tax receivables | 145 | -460 |
Other receivables | 79 | -17 |
Merchandise inventories | -8,799 | -14,359 |
Prepaid expenses and other current assets | 73 | -1,180 |
Other non-current assets | 29 | -7 |
Accounts payable and accrued liabilities | -3,295 | 11,767 |
Deferred rent | 576 | 182 |
Other long-term liabilities | -112 | -104 |
Net cash used in operating activities | -3,530 | -13,792 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of equipment and leasehold improvements | -15,853 | -16,775 |
Investment in marketable securities | -9,500 | 0 |
Proceeds from maturity of marketable securities | 41,259 | 0 |
Net cash provided by (used in) investing activities | 15,906 | -16,775 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from exercise of stock options | 747 | 19 |
Repurchase of common stock | -25,318 | -294 |
Net cash used in financing activities | -24,571 | -275 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -12,195 | -30,842 |
CASH AND CASH EQUIVALENTS, beginning of period | 42,279 | 157,185 |
CASH AND CASH EQUIVALENTS, end of period | 30,084 | 126,343 |
Cash paid during the period for: | ' | ' |
Interest | 57 | 57 |
Income taxes | 267 | 865 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING TRANSACTIONS: | ' | ' |
Retirement of treasury shares | 25,726 | 962 |
Purchase of equipment and leasehold improvements unpaid at end of period | $4,170 | $3,366 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
Summary of Significant Accounting Policies | |||||||||||||||||
Basis of Presentation | |||||||||||||||||
The information set forth in these condensed consolidated financial statements as of and for the 13 and 39 weeks ended November 2, 2013, and October 27, 2012 (collectively, the “Interim Financial Statements”), is unaudited. These statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Certain information and footnote disclosures normally included in The Wet Seal, Inc. (the “Company”) annual consolidated financial statements have been condensed or omitted, as permitted under applicable rules and regulations. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2013. | |||||||||||||||||
In the opinion of management, the Interim Financial Statements reflect all adjustments that are of a normal and recurring nature necessary to fairly present the Company’s financial position and results of operations and cash flows in all material respects as of the dates and for the periods presented. The results of operations presented in the Interim Financial Statements are not necessarily indicative of the results that may be expected for the fiscal year ending February 1, 2014. | |||||||||||||||||
Significant Accounting Policies | |||||||||||||||||
Long-Lived Assets | |||||||||||||||||
The Company evaluates the carrying value of long-lived assets for impairment quarterly or whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Factors that are considered important that could result in the necessity to perform an impairment review include a current-period operating or cash flow loss combined with a history of operating or cash flow losses and a projection or forecast that indicates continuing losses or insufficient income associated with the realization of a long-lived asset or asset group. Other factors include a significant change in the manner of the use of the asset or a significant negative industry or economic trend. This evaluation is performed based on estimated undiscounted future cash flows from operating activities compared with the carrying value of the related assets. If the estimated undiscounted future cash flows are less than the carrying value, an impairment loss is recognized, measured by the difference between the carrying value and the estimated fair value of the assets, based on discounted estimated future cash flows using the Company’s weighted average cost of capital. With regard to store assets, which are comprised of leasehold improvements, fixtures and computer hardware and software, the Company considers the assets at each individual store to represent an asset group. In addition, the Company has considered the relevant valuation techniques that could be applied without undue cost and effort and has determined that the discounted estimated future cash flow approach provides the most relevant and reliable means by which to determine fair value in this circumstance. | |||||||||||||||||
The Company conducts its quarterly impairment evaluation at the individual store level using the guidance under applicable accounting standards. The quarterly analysis includes the Company's estimates of future cash flows using only the cash inflows and outflows that are directly related to each store over the remaining lease term. Key assumptions made by the Company and included within the cash flow estimates are future sales and gross margin projections. The Company determines the future sales and gross margin projections by considering each store's recent and historical performance, the Company's overall performance trends and projections and the potential impact of strategic initiatives on future performance. | |||||||||||||||||
The Company's evaluations during the 13 and 39 weeks ended November 2, 2013, and October 27, 2012 included impairment testing of 40, 59, 56 and 101 stores and resulted in 23, 32, 29 and 80 stores being impaired, respectively, as their projected future cash flows were not sufficient to recover the net carrying value of their assets. As such, the Company recorded the following non-cash charges related to its retail stores within asset impairment in the condensed consolidated statements of operations to write down the carrying values of these stores' long-lived assets to their estimated fair values (in thousands except for number of stores): | |||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||
November 2, 2013 | October 27, 2012 | November 2, 2013 | October 27, 2012 | ||||||||||||||
Aggregate carrying value of all long-lived assets impaired | $ | 5,718 | $ | 6,456 | $ | 7,817 | $ | 19,313 | |||||||||
Less: Impairment charges | 5,061 | 6,456 | 6,919 | 19,035 | |||||||||||||
Aggregate fair value of all long-lived assets impaired | $ | 657 | $ | — | $ | 898 | $ | 278 | |||||||||
Number of stores with asset impairment | 23 | 29 | 32 | 80 | |||||||||||||
Of the 17 stores that were tested and not determined to be impaired during the 13 weeks ended November 2, 2013, 9 could be deemed to be at risk of future impairment. When making this determination, the Company considered the potential impact that reasonably possible changes to sales and gross margin performance versus the Company's current projections for these stores could have on their current estimated cash flows. | |||||||||||||||||
As noted above, the Company considers the positive impact expected from its strategic initiatives when determining the key assumptions to use within the projected cash flows for each store during its quarterly analysis. If the Company is not able to achieve its projected key financial metrics, and strategic initiatives being implemented do not result in significant improvements in the Company's current financial performance trend, the Company may incur additional impairment in the future for those stores tested and not deemed to be impaired in its most recent quarterly analysis, as well as for additional stores not tested in its most recent quarterly analysis. | |||||||||||||||||
Income Taxes | |||||||||||||||||
The Company accounts for income taxes in accordance with applicable accounting standards which require that the Company recognize deferred tax assets, which include net operating loss carryforwards (NOLs) and tax credits, and liabilities based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax expense or benefit results from the change in net deferred tax assets or deferred tax liabilities. Such guidance requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. Due to the Company's three-year cumulative operating losses, the Company established a valuation allowance against all of its deferred tax assets in fiscal 2012. In addition, the Company discontinued recording income tax benefits in the condensed consolidated statements of operations. The Company will not record income tax benefits until it is determined that it is more likely than not that the Company will generate sufficient taxable income to realize the deferred income tax assets. The Company remains in a cumulative three-year operating loss position and realization of its deferred income tax assets is not deemed to be more likely than not. Prospectively, as the Company continues to evaluate available evidence, it is possible that the Company may deem some or all of its deferred income tax assets to be realizable. | |||||||||||||||||
The Company has approximately $121.4 million of federal NOLs available to offset taxable income in fiscal 2013 and thereafter, subject to certain annual limitations based on the provisions of Section 382 of the Internal Revenue Code. The Company's effective tax rate for the 13 and 39 weeks ended November 2, 2013, was approximately negative 0.3% and negative 1.4%, respectively, despite its net loss. This effective rate is due to certain state income taxes for fiscal 2013 that are not based on consolidated net income. The Company expects a negative 1.2% effective income tax rate for fiscal 2013. | |||||||||||||||||
Other Comprehensive Income | |||||||||||||||||
Other comprehensive income refers to gains and losses that are recorded as an element of stockholders' equity but are excluded from net loss. The Company's comprehensive loss for the 13 and 39 weeks ended November 2, 2013, and October 27, 2012 was equal to the Company's net loss. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued amended guidance on the disclosure of accumulated other comprehensive income. The amendments in this update require an entity to provide information about the amounts reclassified from accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the income statement or in the notes, significant amounts reclassified from accumulated other comprehensive income to the statement of operations. The Company adopted this guidance, which did not impact its condensed consolidated financial statements. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||||
Nov. 02, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||
Stock-Based Compensation | ||||||||||||||||
The Company had one stock incentive plan under which shares were available for grant at November 2, 2013: the 2005 Stock Incentive Plan (the “2005 Plan”). The Company previously granted share awards under its 1996 Long-Term Incentive Plan (the “1996 Plan”) and the 2000 Stock Incentive Plan (the “2000 Plan”) that remain unvested and/or unexercised as of November 2, 2013; however, the 1996 Plan expired during fiscal 2006 and the 2000 Plan expired during fiscal 2009, and no further share awards may be granted under the 1996 Plan and 2000 Plan. The 2005 Plan, the 2000 Plan, and the 1996 Plan are collectively referred to as the “Plans.” | ||||||||||||||||
The 2005 Plan permits the granting of options, restricted common stock, performance shares awards, restricted and performance stock units, or other equity-based awards to the Company’s employees, officers, directors, and consultants. The Company believes the granting of equity-based awards helps to align the interests of its employees, officers and directors with those of its stockholders. The Company has a practice of issuing new shares to satisfy stock option exercises, as well as for restricted stock, performance share grants and other awards made or settled in the form of Company stock. The 2005 Plan was approved by the Company’s stockholders on January 10, 2005, as amended with stockholder approval on July 20, 2005, for the issuance of incentive awards covering 12,500,000 shares of Class A common stock. Additionally, an amended and restated 2005 Plan was approved by the Company’s stockholders on May 19, 2010, which increased the incentive awards capacity to 17,500,000 shares of Class A common stock. An aggregate of 22,557,528 shares of Class A common stock have been issued or may be issued pursuant to the Plans. As of November 2, 2013, 4,411,479 shares were available for future grants under the 2005 Plan. | ||||||||||||||||
Stock Options | ||||||||||||||||
The Plans provide that the per-share exercise price of a stock option may not be less than the fair market value of the Company’s Class A common stock on the date the option is granted. Under the Plans, outstanding options vest over periods ranging from three to five years from the grant date and expire from five to ten years after the grant date. Certain stock option and other equity-based awards provide for accelerated vesting if there is a change in control (as defined in the Plans). The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model. The Company uses historical data, the implied volatility of market-traded options and other factors to estimate the expected price volatility, option lives, and forfeiture rates. | ||||||||||||||||
The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant and the estimated life of the option. The following weighted-average assumptions were used to estimate the fair value of options granted during the periods indicated using the Black-Scholes option-pricing model: | ||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||||||||
November 2, 2013 | October 27, 2012 | November 2, 2013 | October 27, 2012 | |||||||||||||
Dividend Yield | — | % | — | % | — | % | — | % | ||||||||
Expected Volatility | 40.73 | % | 46.47 | % | 40.89 | % | 48.58 | % | ||||||||
Risk-Free Interest Rate | 1 | % | 0.47 | % | 0.63 | % | 0.48 | % | ||||||||
Expected Life of Options (in Years) | 3.3 | 3.3 | 3.3 | 3.3 | ||||||||||||
At November 2, 2013, there was $0.4 million of total unrecognized compensation expense related to nonvested stock options under the Company’s share-based payment plans, which will be recognized over an average period of 1.8 years, representing the remaining vesting periods of such options through fiscal 2016. | ||||||||||||||||
The following table summarizes the Company’s stock option activities with respect to its Plans for the 39 weeks ended November 2, 2013 (aggregate intrinsic value in thousands): | ||||||||||||||||
Options | Number of | Weighted- | Weighted- | Aggregate | ||||||||||||
Shares | Average | Average | Intrinsic | |||||||||||||
Exercise | Remaining | Value | ||||||||||||||
Price Per | Contractual Life | |||||||||||||||
Share | (in years) | |||||||||||||||
Outstanding at February 2, 2013 | 1,564,167 | $ | 4.29 | |||||||||||||
Granted | 180,000 | $ | 3.78 | |||||||||||||
Exercised | (210,528 | ) | $ | 3.55 | ||||||||||||
Canceled | (656,171 | ) | $ | 4.9 | ||||||||||||
Outstanding at November 2, 2013 | 877,468 | $ | 3.92 | 3.17 | $ | 70 | ||||||||||
Vested and expected to vest in the future at November 2, 2013 | 817,397 | $ | 3.93 | 3.1 | $ | 64 | ||||||||||
Exercisable at November 2, 2013 | 540,856 | $ | 4.01 | 2.73 | $ | 39 | ||||||||||
Options vested and expected to vest in the future is comprised of all options outstanding at November 2, 2013, net of estimated forfeitures. Additional information regarding stock options outstanding as of November 2, 2013, is as follows: | ||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Exercise Prices | Number | Weighted- | Weighted- | Number | Weighted- | |||||||||||
Outstanding | Average | Average | Exercisable | Average | ||||||||||||
as of | Remaining | Exercise | as of | Exercise | ||||||||||||
2-Nov-13 | Contractual Life | Price Per | 2-Nov-13 | Price Per | ||||||||||||
(in years) | Share | Share | ||||||||||||||
$ 2.66 - $ 4.15 | 618,468 | 3.26 | $ | 3.49 | 368,526 | $ | 3.51 | |||||||||
$ 4.19 - $ 6.82 | 256,000 | 2.97 | $ | 4.88 | 169,330 | $ | 4.98 | |||||||||
$ 10.95 - $ 10.95 | 3,000 | 0.09 | $ | 10.95 | 3,000 | $ | 10.95 | |||||||||
$ 2.66 - $ 10.95 | 877,468 | 3.17 | $ | 3.92 | 540,856 | $ | 4.01 | |||||||||
The weighted-average grant-date fair value of options granted during the 13 and 39 weeks ended November 2, 2013, and October 27, 2012, was $1.13, $1.13, $0.94 and $1.08, respectively. The total intrinsic values for options exercised during the 13 and 39 weeks ended November 2, 2013, and October 27, 2012, was less than $0.1 million, $0.2 million, none, and less than $0.1 million, respectively. | ||||||||||||||||
Cash received from option exercises under the Plans for the 39 weeks ended November 2, 2013, and October 27, 2012, was $0.7 million and less than $0.1 million, respectively. The Company did not realize tax benefits for the tax deductions from option exercises as it must first utilize its regular NOL prior to realizing the excess tax benefits. | ||||||||||||||||
Restricted Common Stock, Restricted Stock Units, Performance Share Awards, and Performance Stock Units | ||||||||||||||||
Under the 2005 Plan, the Company grants directors, certain executives and other key employees restricted common stock and restricted stock units with vesting contingent upon completion of specified service periods ranging from one to three years. The Company also grants certain executives and other key employees performance share awards and performance stock units with vesting contingent upon a combination of specified service periods and the Company’s achievement of specified corporate performance objectives. Restricted stock units and performance stock units awarded to employees represent the right to receive one share of the Company's Class A common stock upon vesting. | ||||||||||||||||
During the 39 weeks ended November 2, 2013, and October 27, 2012, the Company granted 234,759 and 401,370 shares, respectively, of restricted common stock to certain employees and directors under the Plans. The weighted-average grant-date fair value of the restricted common stock granted during the 39 weeks ended November 2, 2013, and October 27, 2012, was $3.03 and $3.22 per share, respectively. Additionally, the Company granted 249,338 restricted stock units to certain employees during the 39 weeks ended November 2, 2013 with a weighted-average grant-date fair value of $3.67 per share. | ||||||||||||||||
During the 39 weeks ended November 2, 2013, the Company granted 261,533 performance share awards under the 2005 Plan, with a grant-date fair value of $2.95 per share. Additionally, the Company granted 183,758 performance stock units to certain employees during the 39 weeks ended November 2, 2013, with a weighted-average grant-date fair value of $3.09 per share, with the opportunity of an additional 32,375 performance stock units to be earned if certain corporate performance objectives are achieved, which are not included in the total outstanding share awards below. During the 13 weeks ended November 2, 2013, the Company reversed the previously recorded performance stock awards and units expense due to declines in corporate performance objectives. | ||||||||||||||||
The fair value of nonvested restricted common stock awards, restricted stock units, performance share awards and performance stock units is equal to the specified grant date price of the Company’s Class A common stock on the grant date. The following table summarizes activity with respect to the Company’s restricted common stock, restricted stock units, performance share awards and performance stock units during the 39 weeks ended November 2, 2013: | ||||||||||||||||
Restricted Common Stock, Restricted Stock Units, Performance Share Awards, and Performance Stock Units | Number of Shares | Weighted-Average Grant-Date Fair Value | ||||||||||||||
Nonvested at February 2, 2013 | 644,492 | $ | 2.89 | |||||||||||||
Granted | 929,388 | $ | 3.19 | |||||||||||||
Vested | (115,119 | ) | $ | 3.14 | ||||||||||||
Forfeited | (56,992 | ) | $ | 3.11 | ||||||||||||
Nonvested at November 2, 2013 | 1,401,769 | $ | 3.06 | |||||||||||||
At November 2, 2013, there was $2.1 million of total unrecognized compensation expense related to nonvested restricted common stock, restricted stock units, performance share awards, and performance stock units under the Company’s share-based payment plans, of which $1.3 million is for restricted common stock and performance stock awards, and $0.8 million is for restricted and performance stock units. That cost is expected to be recognized over a weighted-average period of 2.1 years. These estimates utilize subjective assumptions, which depend upon achievement of a combination of specified service periods and performance objectives. The number of shares to vest, and the related stock-based compensation expense to be incurred, may differ dependent upon actual performance objectives achieved. Therefore, the amount of unrecognized compensation expense noted above does not necessarily represent the expense that will ultimately be recognized by the Company in its condensed consolidated statements of operations. | ||||||||||||||||
The following tables summarize stock-based compensation recorded in the condensed consolidated statements of operations (in thousands): | ||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||||||||
November 2, 2013 | October 27, 2012 | November 2, 2013 | October 27, 2012 | |||||||||||||
Stock options | $ | 89 | $ | 175 | $ | 211 | $ | 1,055 | ||||||||
Restricted and performance stock awards and units | 278 | 430 | 1,001 | 1,541 | ||||||||||||
Stock-based compensation | $ | 367 | $ | 605 | $ | 1,212 | $ | 2,596 | ||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||||||||
November 2, 2013 | October 27, 2012 | November 2, 2013 | October 27, 2012 | |||||||||||||
Cost of sales | $ | 117 | $ | 86 | $ | 239 | $ | 221 | ||||||||
Selling, general, and administrative expenses | 250 | 519 | 973 | 2,375 | ||||||||||||
Stock-based compensation | $ | 367 | $ | 605 | $ | 1,212 | $ | 2,596 | ||||||||
Senior_Revolving_Credit_Facili
Senior Revolving Credit Facility | 9 Months Ended |
Nov. 02, 2013 | |
Debt Disclosure [Abstract] | ' |
Senior Revolving Credit Facility | ' |
Senior Revolving Credit Facility | |
On February 3, 2011, the Company renewed, via amendment and restatement, its $35.0 million senior revolving credit facility with its existing lender (the “Facility”), which can be increased up to $50.0 million in the absence of any default and upon the satisfaction of certain conditions precedent specified in the Facility. The Facility expires in February 2016. Under the Facility, the Company is subject to borrowing base limitations on the amount that can be borrowed and certain customary covenants, including, under certain circumstances, covenants limiting the ability to incur additional indebtedness, make investments and acquisitions, grant liens, pay dividends, repurchase its Class A common stock, close stores, and dispose of assets, without the lender’s consent. The ability of the Company to borrow and request the issuance of letters of credit is subject to the requirement that the Company maintain an excess of the borrowing base over the outstanding credit extensions of the greater of 10% of the aggregate amount of the Facility or $4.0 million. The annual interest rate on the revolving line of credit under the Facility is (i) the higher of the lender’s prime rate, the Federal funds rate plus 0.5% or the one month London InterBank Offered Rate (LIBOR) plus 1.0%, collectively referred to as the “Base Rate”, plus the applicable margin ranging from 0.5% to 1.0% or, (ii) if the Company elects, either the one, two, three or six months LIBOR plus a margin ranging from 1.5% to 2.0%. The applicable Base Rate or LIBOR margin is based on the level of average excess availability, as defined under the Facility, at the time of election, as adjusted quarterly. The Company also incurs fees on outstanding letters of credit under the Facility at an annual rate equal to the applicable LIBOR margin for standby letters of credit and 23.0% of the applicable LIBOR margin for commercial letters of credit. Additionally, the Company is subject to commitment fees at an annual rate of 0.25% on the unused portion of the line of credit under the Facility. | |
Borrowings under the Facility are secured by cash, cash equivalents, investments, receivables and inventory held by the Company and two of its wholly owned subsidiaries, The Wet Seal Retail, Inc. and Wet Seal Catalog, Inc., each of which may be a borrower under the Facility. | |
At November 2, 2013, the amount outstanding under the Facility consisted of $2.0 million in open documentary letters of credit related to merchandise purchases and $1.7 million in outstanding standby letters of credit, and the Company had $31.3 million available under the Facility for cash advances and/or the issuance of additional letters of credit. | |
At November 2, 2013, the Company was in compliance with all covenant requirements under the Facility. |
Fair_Value_Measurements_and_Di
Fair Value Measurements and Disclosures | 9 Months Ended | |||||||||||||||
Nov. 02, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements and Disclosures | ' | |||||||||||||||
Fair Value Measurements and Disclosures | ||||||||||||||||
Fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including the Company's own credit risk. | ||||||||||||||||
Inputs used in measuring fair value are prioritized into a three-level hierarchy based on whether the inputs to those measurements are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. The fair-value hierarchy requires the use of observable market data when available and consists of the following levels: | ||||||||||||||||
• | Level 1 – Quoted prices for identical instruments in active markets; | |||||||||||||||
• | Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets; and | |||||||||||||||
• | Level 3 – Valuations derived from valuation techniques in which one or more significant inputs are unobservable. | |||||||||||||||
The following tables present information on the Company’s financial instruments (in thousands): | ||||||||||||||||
Carrying | Fair Value Measurements | |||||||||||||||
Amount as of | at Reporting Date Using | |||||||||||||||
2-Nov-13 | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | ||||||||||||||||
Cash | $ | 16,098 | $ | 16,098 | $ | — | $ | — | ||||||||
Money market funds | 13,986 | — | 13,986 | — | ||||||||||||
Cash and cash equivalents | 30,084 | |||||||||||||||
Certificates of deposit | 5,490 | — | 5,476 | — | ||||||||||||
US treasury securities | 4,994 | — | 5,000 | — | ||||||||||||
US government agency securities | 25,328 | — | 25,303 | — | ||||||||||||
Short-term investments | 35,812 | |||||||||||||||
Tenant allowances receivable | 1,029 | — | — | 1,029 | ||||||||||||
Carrying | Fair Value Measurements | |||||||||||||||
Amount as of | at Reporting Date Using | |||||||||||||||
February 2, 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | ||||||||||||||||
Cash | $ | 5,612 | $ | 5,612 | $ | — | $ | — | ||||||||
Money market funds | 36,667 | — | 36,667 | — | ||||||||||||
Cash and cash equivalents | 42,279 | |||||||||||||||
Certificates of deposit | 5,053 | — | 5,047 | — | ||||||||||||
US treasury securities | 19,991 | — | 19,991 | — | ||||||||||||
US government agency securities | 42,650 | — | 42,592 | — | ||||||||||||
Short-term investments | 67,694 | — | — | — | ||||||||||||
Long-term tenant allowances receivable | 960 | — | — | 960 | ||||||||||||
Carrying | Fair Value Measurements | |||||||||||||||
Amount as of | at Reporting Date Using | |||||||||||||||
October 27, 2012 | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | ||||||||||||||||
Cash | $ | 21,992 | $ | 21,992 | $ | — | $ | — | ||||||||
Money market funds | 104,351 | — | 104,351 | — | ||||||||||||
Cash and cash equivalents | 126,343 | |||||||||||||||
Long-term tenant allowances receivable | 938 | — | — | 938 | ||||||||||||
Cash and cash equivalents are carried at either cost or amortized cost, which approximates fair value, due to their short term maturities. The Company's money market funds are valued at $1, which is generally the net asset value of these funds and are represented at Level 2. Units are redeemable on a daily basis and redemption requests generally can be received the same day as the effective date. The Company’s short-term investments consist of interest-bearing bonds of various U.S. Government agencies, U.S. treasury securities and certificates of deposit, have maturities that are less than one year and are carried at amortized cost plus accrued income. Short-term investments are carried at amortized cost due to the Company’s intent to hold to maturity. The fair value of the Company’s short-term investments was determined based on quoted prices for similar instruments in active markets. The Company believes the carrying amounts of other receivables and accounts payable approximate fair value. The fair value of the tenant allowances receivable was determined by discounting them to present value using an incremental borrowing rate of 9.26%, at the time of recording, over their five year collection period. As of November 2, 2013, they are included in other receivables within the condensed consolidated balance sheet. | ||||||||||||||||
On a non-recurring basis, the Company measures certain of its long-lived assets at fair value based on Level 3 inputs consisting of, but not limited to, projected sales growth, estimated gross margins, projected operating costs and an estimated weighted-average cost of capital. During the 13 and 39 weeks ended November 2, 2013, and October 27, 2012, the Company recorded $5.1 million, $6.9 million, $6.5 million and $19.0 million of impairment charges, respectively, in the accompanying condensed consolidated statements of operations. Refer to Note 1, “Summary of Significant Accounting Policies.” |
Net_Loss_Per_Share
Net Loss Per Share | 9 Months Ended | |||||||||||
Nov. 02, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Net Loss Per Share | ' | |||||||||||
Net Loss Per Share | ||||||||||||
Net loss per share, basic, is computed based on the weighted-average number of common shares outstanding for the period, including consideration of the two-class method with respect to certain of the Company’s other equity securities (see below). Net loss per share, diluted, is computed based on the weighted-average number of common and potentially dilutive common equivalent shares outstanding for the period, also with consideration given to the two-class method. | ||||||||||||
While the Company historically has paid no cash dividends, participants in the Company’s equity compensation plans who were granted restricted stock and performance shares are allowed to receive cash dividends paid on unvested restricted stock and unvested performance shares. The Company’s unvested restricted stock and unvested performance shares also qualify as participating securities and are included in the computation of earnings per share pursuant to the two-class method. Restricted and performance stock units are not participating securities. For the dilutive computation, under the two-class method, determination of whether the unvested share-based payment awards are dilutive is based on the application of the “treasury stock” method and whether the performance criteria has been met. For the 13 and 39 weeks ended November 2, 2013, and October 27, 2012, the Company incurred a net loss and there was no dilutive effect of any unvested share-based payment awards. | ||||||||||||
The computations of net loss per share, diluted, excluded the following potentially dilutive securities exercisable into Class A common stock for the 13 and 39 weeks ended November 2, 2013, and October 27, 2012, respectively, because their effect would have been anti-dilutive. | ||||||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||||
November 2, 2013 | October 27, 2012 | November 2, 2013 | October 27, 2012 | |||||||||
Stock options outstanding | 567,225 | 2,592,016 | 471,806 | 2,592,419 | ||||||||
Unvested restricted and performance stock awards and units | 1,389,281 | 838,225 | 1,290,574 | 1,560,491 | ||||||||
Total | 1,956,506 | 3,430,241 | 1,762,380 | 4,152,910 | ||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Nov. 02, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Litigation | |
On September 29, 2008, a complaint was filed in the Superior Court of the State of California for the County of San Francisco on behalf of certain of the Company's current and former employees who were employed and paid by the Company from September 29, 2004 through the present. The Company was named as a defendant. The complaint alleged various violations under the State of California Labor Code and the State of California Business and Professions Code. Plaintiffs sought reimbursement for alleged uniform and business expenses, injunctive relief, restitution, civil penalties, interest, and attorney's fees and costs. On August 16, 2011, the court denied Plaintiffs' Motion for Class Certification. Plaintiffs appealed and, on October 12, 2012, the California Court of Appeals affirmed the lower court's ruling. On January 23, 2013, the California Supreme Court denied Plaintiffs' petition for review. On February 4, 2013, the Court of Appeals issued an order to send the case back to the trial court to proceed on behalf of only the three named plaintiffs and not as a class action. In October 2013, the Company entered into confidential settlement agreements that resolved the matter. | |
On April 24, 2009, the U.S. Equal Employment Opportunity Commission (the “EEOC”) requested information and records relevant to several charges of discrimination by the Company against employees of the Company. In the course of this investigation, the EEOC served a subpoena seeking information related to current and former employees throughout the United States. On November 14, 2012, the Company reached resolution with the EEOC and several of the individual complainants that concluded the EEOC's investigation. Between November 2012 and March 2013, the Company paid approximately $0.8 million to settle with individual complainants. The Company also agreed to programmatic initiatives that are consistent with the Company's diversity plan. The Company will report progress on its initiatives and results periodically to the EEOC. Claimants with whom the Company did not enter into a settlement had an opportunity to bring a private lawsuit within ninety days from the date they received their November 26, 2012 right-to-sue notice from the EEOC, however, that time period is tolled for those individuals who are putative class members in a race discrimination class action filed on July 12, 2012 in the United States District Court for the Central District of California with respect to any race discrimination claims they have that are within the scope of the putative class action (see below). On December 12, 2012, the EEOC issued a "for cause" finding related to certain allegations made by one complainant, who is the lead plaintiff in the above-referenced class action. | |
On May 9, 2011, a complaint was filed in the Superior Court of the State of California for the County of Alameda on behalf of certain of the Company's current and former employees who were employed and paid by the Company from May 9, 2007 through the present. The Company was named as a defendant. The complaint alleges various violations under the State of California Labor Code and the State of California Business and Professions Code. Plaintiffs are seeking statutory penalties, civil penalties, injunctive relief, and attorneys' fees and costs. On February 3, 2012, the court granted the Company's motion to transfer venue to the County of Orange. On July 13, 2012, the Court granted the Company's motion to compel arbitration. Plaintiffs appealed, and on November 15, 2013, the Court of Appeals issued an order affirming the trial court's order compelling individual arbitration, but reversing the trial court's order compelling arbitration of Plaintiffs' Private Attorney General Act (PAGA) claims on an individual basis. The Company intends to appeal the decision to the California Supreme Court. In a concurrent proceeding, on July 18, 2012, the Company received notice that Plaintiffs filed charges with the National Labor Relations Board (NLRB) under Section 7 of the National Labor Relations Board Act based on the arbitration agreements Plaintiffs signed upon their hiring with the Company. Plaintiffs alleged that the Company's arbitration agreements unlawfully compel employees to waive their rights to participate in class or representative actions against the Company. On September 20, 2012, the NLRB dismissed Plaintiffs' claims. | |
On October 27, 2011, a complaint was filed in the Superior Court of the State of California for the County of Los Angeles on behalf of certain of the Company's current and former employees who were employed in California during the time period from October 27, 2007 through the present. The Company was named as a defendant. Plaintiffs are seeking unpaid wages, civil and statutory penalties, restitution, injunctive relief, interest, and attorneys' fees and costs. The complaint alleges various violations under the State of California Labor Code and the State of California Business and Professions Code. On March 28, 2012, the court entered an Order denying the Company's motion to compel arbitration. On September 21, 2012, the Company filed a notice of appeal that is currently pending. | |
On July 12, 2012, a complaint was filed in United States District Court for the Central District of California on behalf of certain of the Company's current and former African American retail store employees. The Company was named as a defendant. The complaint alleged various violations under 42 U.S.C. § 1981, including allegations that the Company engaged in disparate treatment discrimination of those African American current and former employees in promotion to management positions and against African American store management employees with respect to compensation and termination from 2008 through the present. Plaintiffs also alleged retaliation. Plaintiffs also sought reinstatement or instatement of Plaintiffs and class members to their alleged rightful employment positions, lost pay and benefits allegedly sustained by Plaintiffs and class members, compensatory damages for emotional distress, front pay, punitive damages, attorneys' fees, and interest. On May 8, 2013, the Company and Class Representatives filed papers memorializing an amicable resolution to the case pending final court approval. The Settlement Agreement provides for a cash payment of $7.5 million and also includes programmatic relief under which the Company agrees to post open positions, implement new selection criteria and interview protocols, revamp its annual performance reviews and compensation structure, add regional human resource directors, implement more diversity and inclusion communications and training for field and corporate office employees, and enhance its investigations training and processes. The Company has also reflected its commitment to use diverse models in its marketing and to partnerships with organizations dedicated to the advancement and well-being of African Americans and other diverse groups. On June 12, 2013, the court granted preliminary approval of the settlement and in June 2013 the Company issued payment to the settlement administrator for $7.5 million. The final approval hearing was held on November 18, 2013 and a decision is currently pending. | |
As of November 2, 2013, the Company has accrued $0.2 million for loss contingencies in connection with the litigation matters enumerated above, and certain other legal matters, which is included in accounts payable - other on the condensed consolidated balance sheet. Some of these contingency matters include or may include insurance recovery. The Company is vigorously defending the pending matters and will continue to evaluate its potential exposure and estimated costs as these matters progress. Future developments may require the Company to adjust the amount of this accrual, which, if increased, could have a material effect on the Company's results of operations or financial condition. | |
From time to time, the Company is involved in other litigation matters relating to claims arising out of its operations in the normal course of business. The Company believes that, in the event of a settlement or an adverse judgment on certain of these claims, insurance may cover a portion of such losses. However, the outcome of the Company's litigation matters cannot be accurately predicted and there may be existing matters or matters that arise for which the Company does not have insurance coverage or for which insurance provides only partial coverage. Such outcome could have a material effect on the Company's results of operations or financial condition. |
Segment_Reporting
Segment Reporting | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting | ' | ||||||||||||||||
Segment Reporting | |||||||||||||||||
The Company operates exclusively in the retail apparel industry in which it sells apparel and accessory items, primarily through mall-based chains of retail stores, to female consumers with a young, active lifestyle. The Company has identified two operating segments (“Wet Seal” and “Arden B”). E-commerce operations for Wet Seal and Arden B are included in their respective operating segments. | |||||||||||||||||
Information for the 13 and 39 weeks ended November 2, 2013, and October 27, 2012, for the two reportable segments is set forth below (in thousands, except percentages): | |||||||||||||||||
13 Weeks Ended November 2, 2013 | Wet Seal | Arden B | Corporate | Total | |||||||||||||
and | |||||||||||||||||
Unallocated | |||||||||||||||||
Net sales | $ | 114,878 | $ | 12,786 | $ | — | $ | 127,664 | |||||||||
Percentage of consolidated net sales | 90 | % | 10 | % | — | % | 100 | % | |||||||||
Operating loss | $ | (4,575 | ) | $ | (2,427 | ) | $ | (7,853 | ) | $ | (14,855 | ) | |||||
Depreciation and amortization expense | $ | 2,615 | $ | 304 | $ | 504 | $ | 3,423 | |||||||||
Interest income | $ | — | $ | — | $ | 49 | $ | 49 | |||||||||
Interest expense | $ | — | $ | — | $ | (55 | ) | $ | (55 | ) | |||||||
Loss before provision for income taxes | $ | (4,575 | ) | $ | (2,427 | ) | $ | (7,859 | ) | $ | (14,861 | ) | |||||
13 Weeks Ended October 27, 2012 | Wet Seal | Arden B | Corporate | Total | |||||||||||||
and | |||||||||||||||||
Unallocated | |||||||||||||||||
Net sales | $ | 117,892 | $ | 17,645 | $ | — | $ | 135,537 | |||||||||
Percentage of consolidated net sales | 87 | % | 13 | % | — | % | 100 | % | |||||||||
Operating loss | $ | (8,747 | ) | $ | (3,733 | ) | $ | (12,336 | ) | $ | (24,816 | ) | |||||
Depreciation and amortization expense | $ | 3,442 | $ | 404 | $ | 422 | $ | 4,268 | |||||||||
Interest income | $ | — | $ | — | $ | 35 | $ | 35 | |||||||||
Interest expense | $ | — | $ | — | $ | (45 | ) | $ | (45 | ) | |||||||
Loss before benefit for income taxes | $ | (8,747 | ) | $ | (3,733 | ) | $ | (12,346 | ) | $ | (24,826 | ) | |||||
39 Weeks Ended November 2, 2013 | Wet Seal | Arden B | Corporate | Total | |||||||||||||
and | |||||||||||||||||
Unallocated | |||||||||||||||||
Net sales | $ | 358,245 | $ | 47,113 | $ | — | $ | 405,358 | |||||||||
Percentage of consolidated net sales | 88 | % | 12 | % | — | % | 100 | % | |||||||||
Operating income (loss) | $ | 13,928 | $ | (1,380 | ) | $ | (23,227 | ) | $ | (10,679 | ) | ||||||
Depreciation and amortization expense | $ | 7,934 | $ | 882 | $ | 1,382 | $ | 10,198 | |||||||||
Interest income | $ | — | $ | — | $ | 150 | $ | 150 | |||||||||
Interest expense | $ | — | $ | — | $ | (163 | ) | $ | (163 | ) | |||||||
Income (loss) before provision for income taxes | $ | 13,928 | $ | (1,380 | ) | $ | (23,240 | ) | $ | (10,692 | ) | ||||||
39 Weeks Ended October 27, 2012 | Wet Seal | Arden B | Corporate | Total | |||||||||||||
and | |||||||||||||||||
Unallocated | |||||||||||||||||
Net sales | $ | 357,806 | $ | 60,937 | $ | — | $ | 418,743 | |||||||||
Percentage of consolidated net sales | 85 | % | 15 | % | — | % | 100 | % | |||||||||
Operating loss | $ | (8,003 | ) | $ | (6,614 | ) | $ | (30,183 | ) | $ | (44,800 | ) | |||||
Depreciation and amortization expense | $ | 11,022 | $ | 1,314 | $ | 1,195 | $ | 13,531 | |||||||||
Interest income | $ | — | $ | — | $ | 108 | $ | 108 | |||||||||
Interest expense | $ | — | $ | — | $ | (136 | ) | $ | (136 | ) | |||||||
Loss before benefit for income taxes | $ | (8,003 | ) | $ | (6,614 | ) | $ | (30,211 | ) | $ | (44,828 | ) | |||||
The “Corporate and Unallocated” column is presented to allow for reconciliation of segment contribution to consolidated operating income (loss), interest income, interest expense and income (loss) before provision (benefit) for income taxes. Wet Seal and Arden B segment results include net sales, cost of sales, asset impairment and other direct store and field management expenses, with no allocation of corporate overhead or interest income and expense. The application of accounting policies for segment reporting is consistent with the application of accounting policies for corporate reporting. | |||||||||||||||||
Wet Seal operating income (loss) during the 13 and 39 weeks ended November 2, 2013, and October 27, 2012, includes $4.8 million, $6.1 million, $5.8 million and $16.3 million, respectively, of asset impairment charges. | |||||||||||||||||
Arden B operating loss during the 13 and 39 weeks ended November 2, 2013, and October 27, 2012, includes $0.3 million, $0.8 million, $0.7 million and $2.7 million, respectively, of asset impairment charges. | |||||||||||||||||
Corporate expenses during the 39 weeks ended November 2, 2013, include a $3.5 million benefit to adjust loss contingency charges for several legal matters. Corporate expenses during the 13 and 39 weeks ended October 27, 2012, include $0.1 million and $2.0 million, respectively, of severance costs resulting from the departure of the Company's previous chief executive officer. Corporate expenses during the 13 and 39 weeks ended October 27, 2012, included $2.1 million in professional fees to defend against a shareholder proxy solicitation to replace a majority of the Company’s board members. The proxy solicitation ultimately led to an agreement to replace four of the Company’s seven board members during October 2012. |
Treasury_Stock
Treasury Stock | 9 Months Ended |
Nov. 02, 2013 | |
Equity [Abstract] | ' |
Treasury Stock | ' |
Treasury Stock | |
On February 1, 2013, the Company's Board of Directors authorized a program to repurchase up to $25.0 million of the outstanding shares of its Class A common stock, to be executed through open market or privately negotiated transactions. The timing and number of shares repurchased was to be determined by the Company’s management based on its evaluation of market conditions and other factors. | |
During the 39 weeks ended November 2, 2013, the Company repurchased 5,565,873 shares of its Class A common stock at a weighted average market price of $4.48 per share, for a total cost, including commissions, of $25.0 million, representing full execution of the stock repurchase program. Additionally, the Company tendered 90,703 shares of its Class A common stock upon restricted stock vesting to satisfy employee withholding tax obligations for a total cost of $0.3 million, as well as 56,201 shares reacquired by the Company, at no cost, upon employee forfeitures of stock-based compensation. | |
Effective August 22, 2013, the Company retired 6,517,370 shares of its Class A common stock held in treasury. In accordance with Delaware law and the terms of the Company’s certificate of incorporation, upon retirement, such treasury shares resumed the status of authorized and unissued shares of Company Class A common stock. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Nov. 02, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The information set forth in these condensed consolidated financial statements as of and for the 13 and 39 weeks ended November 2, 2013, and October 27, 2012 (collectively, the “Interim Financial Statements”), is unaudited. These statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Certain information and footnote disclosures normally included in The Wet Seal, Inc. (the “Company”) annual consolidated financial statements have been condensed or omitted, as permitted under applicable rules and regulations. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2013. | |
In the opinion of management, the Interim Financial Statements reflect all adjustments that are of a normal and recurring nature necessary to fairly present the Company’s financial position and results of operations and cash flows in all material respects as of the dates and for the periods presented. The results of operations presented in the Interim Financial Statements are not necessarily indicative of the results that may be expected for the fiscal year ending February 1, 2014. | |
Long-Lived Assets | ' |
Long-Lived Assets | |
The Company evaluates the carrying value of long-lived assets for impairment quarterly or whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Factors that are considered important that could result in the necessity to perform an impairment review include a current-period operating or cash flow loss combined with a history of operating or cash flow losses and a projection or forecast that indicates continuing losses or insufficient income associated with the realization of a long-lived asset or asset group. Other factors include a significant change in the manner of the use of the asset or a significant negative industry or economic trend. This evaluation is performed based on estimated undiscounted future cash flows from operating activities compared with the carrying value of the related assets. If the estimated undiscounted future cash flows are less than the carrying value, an impairment loss is recognized, measured by the difference between the carrying value and the estimated fair value of the assets, based on discounted estimated future cash flows using the Company’s weighted average cost of capital. With regard to store assets, which are comprised of leasehold improvements, fixtures and computer hardware and software, the Company considers the assets at each individual store to represent an asset group. In addition, the Company has considered the relevant valuation techniques that could be applied without undue cost and effort and has determined that the discounted estimated future cash flow approach provides the most relevant and reliable means by which to determine fair value in this circumstance. | |
The Company conducts its quarterly impairment evaluation at the individual store level using the guidance under applicable accounting standards. The quarterly analysis includes the Company's estimates of future cash flows using only the cash inflows and outflows that are directly related to each store over the remaining lease term. Key assumptions made by the Company and included within the cash flow estimates are future sales and gross margin projections. The Company determines the future sales and gross margin projections by considering each store's recent and historical performance, the Company's overall performance trends and projections and the potential impact of strategic initiatives on future performance. | |
Income Taxes | ' |
Income Taxes | |
The Company accounts for income taxes in accordance with applicable accounting standards which require that the Company recognize deferred tax assets, which include net operating loss carryforwards (NOLs) and tax credits, and liabilities based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax expense or benefit results from the change in net deferred tax assets or deferred tax liabilities. Such guidance requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. Due to the Company's three-year cumulative operating losses, the Company established a valuation allowance against all of its deferred tax assets in fiscal 2012. In addition, the Company discontinued recording income tax benefits in the condensed consolidated statements of operations. The Company will not record income tax benefits until it is determined that it is more likely than not that the Company will generate sufficient taxable income to realize the deferred income tax assets. The Company remains in a cumulative three-year operating loss position and realization of its deferred income tax assets is not deemed to be more likely than not. Prospectively, as the Company continues to evaluate available evidence, it is possible that the Company may deem some or all of its deferred income tax assets to be realizable. | |
Other Comprehensive Income | ' |
Other Comprehensive Income | |
Other comprehensive income refers to gains and losses that are recorded as an element of stockholders' equity but are excluded from net loss. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued amended guidance on the disclosure of accumulated other comprehensive income. The amendments in this update require an entity to provide information about the amounts reclassified from accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the income statement or in the notes, significant amounts reclassified from accumulated other comprehensive income to the statement of operations. The Company adopted this guidance, which did not impact its condensed consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Computation of fair value of long-lived assets and non-cash charges within asset impairment related to retail stores | ' | ||||||||||||||||
The Company's evaluations during the 13 and 39 weeks ended November 2, 2013, and October 27, 2012 included impairment testing of 40, 59, 56 and 101 stores and resulted in 23, 32, 29 and 80 stores being impaired, respectively, as their projected future cash flows were not sufficient to recover the net carrying value of their assets. As such, the Company recorded the following non-cash charges related to its retail stores within asset impairment in the condensed consolidated statements of operations to write down the carrying values of these stores' long-lived assets to their estimated fair values (in thousands except for number of stores): | |||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||
November 2, 2013 | October 27, 2012 | November 2, 2013 | October 27, 2012 | ||||||||||||||
Aggregate carrying value of all long-lived assets impaired | $ | 5,718 | $ | 6,456 | $ | 7,817 | $ | 19,313 | |||||||||
Less: Impairment charges | 5,061 | 6,456 | 6,919 | 19,035 | |||||||||||||
Aggregate fair value of all long-lived assets impaired | $ | 657 | $ | — | $ | 898 | $ | 278 | |||||||||
Number of stores with asset impairment | 23 | 29 | 32 | 80 | |||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Nov. 02, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Weighted-average assumptions used to estimate the fair value of options granted | ' | |||||||||||||||
The following weighted-average assumptions were used to estimate the fair value of options granted during the periods indicated using the Black-Scholes option-pricing model: | ||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||||||||
November 2, 2013 | October 27, 2012 | November 2, 2013 | October 27, 2012 | |||||||||||||
Dividend Yield | — | % | — | % | — | % | — | % | ||||||||
Expected Volatility | 40.73 | % | 46.47 | % | 40.89 | % | 48.58 | % | ||||||||
Risk-Free Interest Rate | 1 | % | 0.47 | % | 0.63 | % | 0.48 | % | ||||||||
Expected Life of Options (in Years) | 3.3 | 3.3 | 3.3 | 3.3 | ||||||||||||
Company's stock option activities | ' | |||||||||||||||
The following table summarizes the Company’s stock option activities with respect to its Plans for the 39 weeks ended November 2, 2013 (aggregate intrinsic value in thousands): | ||||||||||||||||
Options | Number of | Weighted- | Weighted- | Aggregate | ||||||||||||
Shares | Average | Average | Intrinsic | |||||||||||||
Exercise | Remaining | Value | ||||||||||||||
Price Per | Contractual Life | |||||||||||||||
Share | (in years) | |||||||||||||||
Outstanding at February 2, 2013 | 1,564,167 | $ | 4.29 | |||||||||||||
Granted | 180,000 | $ | 3.78 | |||||||||||||
Exercised | (210,528 | ) | $ | 3.55 | ||||||||||||
Canceled | (656,171 | ) | $ | 4.9 | ||||||||||||
Outstanding at November 2, 2013 | 877,468 | $ | 3.92 | 3.17 | $ | 70 | ||||||||||
Vested and expected to vest in the future at November 2, 2013 | 817,397 | $ | 3.93 | 3.1 | $ | 64 | ||||||||||
Exercisable at November 2, 2013 | 540,856 | $ | 4.01 | 2.73 | $ | 39 | ||||||||||
Stock options outstanding | ' | |||||||||||||||
Options vested and expected to vest in the future is comprised of all options outstanding at November 2, 2013, net of estimated forfeitures. Additional information regarding stock options outstanding as of November 2, 2013, is as follows: | ||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Exercise Prices | Number | Weighted- | Weighted- | Number | Weighted- | |||||||||||
Outstanding | Average | Average | Exercisable | Average | ||||||||||||
as of | Remaining | Exercise | as of | Exercise | ||||||||||||
2-Nov-13 | Contractual Life | Price Per | 2-Nov-13 | Price Per | ||||||||||||
(in years) | Share | Share | ||||||||||||||
$ 2.66 - $ 4.15 | 618,468 | 3.26 | $ | 3.49 | 368,526 | $ | 3.51 | |||||||||
$ 4.19 - $ 6.82 | 256,000 | 2.97 | $ | 4.88 | 169,330 | $ | 4.98 | |||||||||
$ 10.95 - $ 10.95 | 3,000 | 0.09 | $ | 10.95 | 3,000 | $ | 10.95 | |||||||||
$ 2.66 - $ 10.95 | 877,468 | 3.17 | $ | 3.92 | 540,856 | $ | 4.01 | |||||||||
Company's nonvested restricted common stock and performance shares | ' | |||||||||||||||
The following table summarizes activity with respect to the Company’s restricted common stock, restricted stock units, performance share awards and performance stock units during the 39 weeks ended November 2, 2013: | ||||||||||||||||
Restricted Common Stock, Restricted Stock Units, Performance Share Awards, and Performance Stock Units | Number of Shares | Weighted-Average Grant-Date Fair Value | ||||||||||||||
Nonvested at February 2, 2013 | 644,492 | $ | 2.89 | |||||||||||||
Granted | 929,388 | $ | 3.19 | |||||||||||||
Vested | (115,119 | ) | $ | 3.14 | ||||||||||||
Forfeited | (56,992 | ) | $ | 3.11 | ||||||||||||
Nonvested at November 2, 2013 | 1,401,769 | $ | 3.06 | |||||||||||||
Summary of stock-based compensation | ' | |||||||||||||||
The following tables summarize stock-based compensation recorded in the condensed consolidated statements of operations (in thousands): | ||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||||||||
November 2, 2013 | October 27, 2012 | November 2, 2013 | October 27, 2012 | |||||||||||||
Stock options | $ | 89 | $ | 175 | $ | 211 | $ | 1,055 | ||||||||
Restricted and performance stock awards and units | 278 | 430 | 1,001 | 1,541 | ||||||||||||
Stock-based compensation | $ | 367 | $ | 605 | $ | 1,212 | $ | 2,596 | ||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||||||||
November 2, 2013 | October 27, 2012 | November 2, 2013 | October 27, 2012 | |||||||||||||
Cost of sales | $ | 117 | $ | 86 | $ | 239 | $ | 221 | ||||||||
Selling, general, and administrative expenses | 250 | 519 | 973 | 2,375 | ||||||||||||
Stock-based compensation | $ | 367 | $ | 605 | $ | 1,212 | $ | 2,596 | ||||||||
Fair_Value_Measurements_and_Di1
Fair Value Measurements and Disclosures (Tables) | 9 Months Ended | |||||||||||||||
Nov. 02, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Summary of company's financial instruments | ' | |||||||||||||||
The following tables present information on the Company’s financial instruments (in thousands): | ||||||||||||||||
Carrying | Fair Value Measurements | |||||||||||||||
Amount as of | at Reporting Date Using | |||||||||||||||
2-Nov-13 | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | ||||||||||||||||
Cash | $ | 16,098 | $ | 16,098 | $ | — | $ | — | ||||||||
Money market funds | 13,986 | — | 13,986 | — | ||||||||||||
Cash and cash equivalents | 30,084 | |||||||||||||||
Certificates of deposit | 5,490 | — | 5,476 | — | ||||||||||||
US treasury securities | 4,994 | — | 5,000 | — | ||||||||||||
US government agency securities | 25,328 | — | 25,303 | — | ||||||||||||
Short-term investments | 35,812 | |||||||||||||||
Tenant allowances receivable | 1,029 | — | — | 1,029 | ||||||||||||
Carrying | Fair Value Measurements | |||||||||||||||
Amount as of | at Reporting Date Using | |||||||||||||||
February 2, 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | ||||||||||||||||
Cash | $ | 5,612 | $ | 5,612 | $ | — | $ | — | ||||||||
Money market funds | 36,667 | — | 36,667 | — | ||||||||||||
Cash and cash equivalents | 42,279 | |||||||||||||||
Certificates of deposit | 5,053 | — | 5,047 | — | ||||||||||||
US treasury securities | 19,991 | — | 19,991 | — | ||||||||||||
US government agency securities | 42,650 | — | 42,592 | — | ||||||||||||
Short-term investments | 67,694 | — | — | — | ||||||||||||
Long-term tenant allowances receivable | 960 | — | — | 960 | ||||||||||||
Carrying | Fair Value Measurements | |||||||||||||||
Amount as of | at Reporting Date Using | |||||||||||||||
October 27, 2012 | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | ||||||||||||||||
Cash | $ | 21,992 | $ | 21,992 | $ | — | $ | — | ||||||||
Money market funds | 104,351 | — | 104,351 | — | ||||||||||||
Cash and cash equivalents | 126,343 | |||||||||||||||
Long-term tenant allowances receivable | 938 | — | — | 938 | ||||||||||||
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 9 Months Ended | |||||||||||
Nov. 02, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Antidilutive securities excluded from computation of net (loss) income per share, diluted | ' | |||||||||||
The computations of net loss per share, diluted, excluded the following potentially dilutive securities exercisable into Class A common stock for the 13 and 39 weeks ended November 2, 2013, and October 27, 2012, respectively, because their effect would have been anti-dilutive. | ||||||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||||
November 2, 2013 | October 27, 2012 | November 2, 2013 | October 27, 2012 | |||||||||
Stock options outstanding | 567,225 | 2,592,016 | 471,806 | 2,592,419 | ||||||||
Unvested restricted and performance stock awards and units | 1,389,281 | 838,225 | 1,290,574 | 1,560,491 | ||||||||
Total | 1,956,506 | 3,430,241 | 1,762,380 | 4,152,910 | ||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Operating Segments | ' | ||||||||||||||||
Information for the 13 and 39 weeks ended November 2, 2013, and October 27, 2012, for the two reportable segments is set forth below (in thousands, except percentages): | |||||||||||||||||
13 Weeks Ended November 2, 2013 | Wet Seal | Arden B | Corporate | Total | |||||||||||||
and | |||||||||||||||||
Unallocated | |||||||||||||||||
Net sales | $ | 114,878 | $ | 12,786 | $ | — | $ | 127,664 | |||||||||
Percentage of consolidated net sales | 90 | % | 10 | % | — | % | 100 | % | |||||||||
Operating loss | $ | (4,575 | ) | $ | (2,427 | ) | $ | (7,853 | ) | $ | (14,855 | ) | |||||
Depreciation and amortization expense | $ | 2,615 | $ | 304 | $ | 504 | $ | 3,423 | |||||||||
Interest income | $ | — | $ | — | $ | 49 | $ | 49 | |||||||||
Interest expense | $ | — | $ | — | $ | (55 | ) | $ | (55 | ) | |||||||
Loss before provision for income taxes | $ | (4,575 | ) | $ | (2,427 | ) | $ | (7,859 | ) | $ | (14,861 | ) | |||||
13 Weeks Ended October 27, 2012 | Wet Seal | Arden B | Corporate | Total | |||||||||||||
and | |||||||||||||||||
Unallocated | |||||||||||||||||
Net sales | $ | 117,892 | $ | 17,645 | $ | — | $ | 135,537 | |||||||||
Percentage of consolidated net sales | 87 | % | 13 | % | — | % | 100 | % | |||||||||
Operating loss | $ | (8,747 | ) | $ | (3,733 | ) | $ | (12,336 | ) | $ | (24,816 | ) | |||||
Depreciation and amortization expense | $ | 3,442 | $ | 404 | $ | 422 | $ | 4,268 | |||||||||
Interest income | $ | — | $ | — | $ | 35 | $ | 35 | |||||||||
Interest expense | $ | — | $ | — | $ | (45 | ) | $ | (45 | ) | |||||||
Loss before benefit for income taxes | $ | (8,747 | ) | $ | (3,733 | ) | $ | (12,346 | ) | $ | (24,826 | ) | |||||
39 Weeks Ended November 2, 2013 | Wet Seal | Arden B | Corporate | Total | |||||||||||||
and | |||||||||||||||||
Unallocated | |||||||||||||||||
Net sales | $ | 358,245 | $ | 47,113 | $ | — | $ | 405,358 | |||||||||
Percentage of consolidated net sales | 88 | % | 12 | % | — | % | 100 | % | |||||||||
Operating income (loss) | $ | 13,928 | $ | (1,380 | ) | $ | (23,227 | ) | $ | (10,679 | ) | ||||||
Depreciation and amortization expense | $ | 7,934 | $ | 882 | $ | 1,382 | $ | 10,198 | |||||||||
Interest income | $ | — | $ | — | $ | 150 | $ | 150 | |||||||||
Interest expense | $ | — | $ | — | $ | (163 | ) | $ | (163 | ) | |||||||
Income (loss) before provision for income taxes | $ | 13,928 | $ | (1,380 | ) | $ | (23,240 | ) | $ | (10,692 | ) | ||||||
39 Weeks Ended October 27, 2012 | Wet Seal | Arden B | Corporate | Total | |||||||||||||
and | |||||||||||||||||
Unallocated | |||||||||||||||||
Net sales | $ | 357,806 | $ | 60,937 | $ | — | $ | 418,743 | |||||||||
Percentage of consolidated net sales | 85 | % | 15 | % | — | % | 100 | % | |||||||||
Operating loss | $ | (8,003 | ) | $ | (6,614 | ) | $ | (30,183 | ) | $ | (44,800 | ) | |||||
Depreciation and amortization expense | $ | 11,022 | $ | 1,314 | $ | 1,195 | $ | 13,531 | |||||||||
Interest income | $ | — | $ | — | $ | 108 | $ | 108 | |||||||||
Interest expense | $ | — | $ | — | $ | (136 | ) | $ | (136 | ) | |||||||
Loss before benefit for income taxes | $ | (8,003 | ) | $ | (6,614 | ) | $ | (30,211 | ) | $ | (44,828 | ) |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
store | store | store | store | |
Summary of long-lived assets | ' | ' | ' | ' |
Aggregate carrying value of all long-lived assets impaired | $5,718 | $6,456 | $7,817 | $19,313 |
Less: Impairment charges | 5,061 | 6,456 | 6,919 | 19,035 |
Aggregate fair value of all long-lived assets impaired | $657 | $0 | $898 | $278 |
Number of stores with asset impairment | 23 | 29 | 32 | 80 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
store | store | store | store | |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Number of stores tested for asset impairment | 40 | 56 | 59 | 101 |
Number of stores with asset impairment | 23 | 29 | 32 | 80 |
Number of stores tested but not impaired | 17 | ' | ' | ' |
Number of stores tested but not impaired with risk of future impairment | 9 | ' | ' | ' |
Income Taxes: | ' | ' | ' | ' |
Net operating loss carry forwards | $121.40 | ' | $121.40 | ' |
Effective income tax rate | 0.30% | ' | 1.40% | ' |
Effective income tax rate, expected for remainder of fiscal year | ' | ' | 1.20% | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) | 3 Months Ended | 9 Months Ended | ||
Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | |
Weighted-average assumptions used to estimate the fair value of options granted | ' | ' | ' | ' |
Dividend Yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected Volatility | 40.73% | 46.47% | 40.89% | 48.58% |
Risk-Free Interest Rate | 1.00% | 0.47% | 0.63% | 0.48% |
Expected Life of Options (in Years) | '3 years 3 months 18 days | '3 years 3 months 18 days | '3 years 3 months 18 days | '3 years 3 months 18 days |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 1) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Nov. 02, 2013 |
Number of shares: | ' |
Outstanding at February 2, 2013 | 1,564,167 |
Granted | 180,000 |
Exercised | -210,528 |
Canceled | -656,171 |
Outstanding at November 2, 2013 | 877,468 |
Vested and expected to vest in the future at November 2, 2013 | 817,397 |
Exercisable at November 2, 2013 | 540,856 |
Weighted-Average Exercise Price Per Share (in dollars per share): | ' |
Outstanding at February 2, 2013 | $4.29 |
Granted | $3.78 |
Exercised | $3.55 |
Canceled | $4.90 |
Outstanding at November 2, 2013 | $3.92 |
Vested and expected to vest in the future at November 2, 2013 | $3.93 |
Exercisable at November 2, 2013 | $4.01 |
Outstanding at November 2, 2013, Weighted Average Remaining Contractual Life | '3 years 2 months 1 day |
Vested and expected to vest in the future at November 2, 2013, Weighted Average Remaining Contractual Life | '3 years 1 month 6 days |
Exercisable at November 2, 2013, Weighted Average Remaining Contractual Life | '2 years 8 months 23 days |
Outstanding at November 2, 2013, Aggregate Intrinsic Value | $70 |
Vested and expected to vest in the future at November 2, 2013, Aggregate Intrinsic Value | 64 |
Exercisable at November 2, 2013, Aggregate Intrinsic Value | $39 |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 2) (USD $) | 9 Months Ended |
Nov. 02, 2013 | |
2.66 - 4.15 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Limit | $2.66 |
Range of Exercise Prices, Upper Limit | $4.15 |
Options Outstanding, Number Outstanding as of November 2, 2013 | 618,468 |
Options Outstanding, Weighted- Average Remaining Contractual Life (in years) | '3 years 3 months 5 days |
Options Outstanding, Weighted- Average Exercise Price Per Share | $3.49 |
Options Exercisable, Number Exercisable as of November 2, 2013 | 368,526 |
Options Exercisable, Weighted- Average Exercise Price Per Share | $3.51 |
4.19 - 6.82 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Limit | $4.19 |
Range of Exercise Prices, Upper Limit | $6.82 |
Options Outstanding, Number Outstanding as of November 2, 2013 | 256,000 |
Options Outstanding, Weighted- Average Remaining Contractual Life (in years) | '2 years 11 months 20 days |
Options Outstanding, Weighted- Average Exercise Price Per Share | $4.88 |
Options Exercisable, Number Exercisable as of November 2, 2013 | 169,330 |
Options Exercisable, Weighted- Average Exercise Price Per Share | $4.98 |
10.95 - 10.95 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Limit | $10.95 |
Range of Exercise Prices, Upper Limit | $10.95 |
Options Outstanding, Number Outstanding as of November 2, 2013 | 3,000 |
Options Outstanding, Weighted- Average Remaining Contractual Life (in years) | '1 month 2 days |
Options Outstanding, Weighted- Average Exercise Price Per Share | $10.95 |
Options Exercisable, Number Exercisable as of November 2, 2013 | 3,000 |
Options Exercisable, Weighted- Average Exercise Price Per Share | $10.95 |
2.66 - 10.95 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Limit | $2.66 |
Range of Exercise Prices, Upper Limit | $10.95 |
Options Outstanding, Number Outstanding as of November 2, 2013 | 877,468 |
Options Outstanding, Weighted- Average Remaining Contractual Life (in years) | '3 years 2 months 2 days |
Options Outstanding, Weighted- Average Exercise Price Per Share | $3.92 |
Options Exercisable, Number Exercisable as of November 2, 2013 | 540,856 |
Options Exercisable, Weighted- Average Exercise Price Per Share | $4.01 |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details 3) (Nonvested Restricted Common Stock and Performance Shares [Member], USD $) | 9 Months Ended |
Nov. 02, 2013 | |
Nonvested Restricted Common Stock and Performance Shares [Member] | ' |
Number of Shares: | ' |
Nonvested at February 2, 2013 | 644,492 |
Granted | 929,388 |
Vested | -115,119 |
Forfeited | -56,992 |
Nonvested at November 2, 2013 | 1,401,769 |
Weighted-Average Grant-Date Fair Value (in dollars per share): | ' |
Nonvested at February 2, 2013 | $2.89 |
Granted | $3.19 |
Vested | $3.14 |
Forfeited | $3.11 |
Nonvested at November 2, 2013 | $3.06 |
StockBased_Compensation_Detail4
Stock-Based Compensation (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Summary of stock-based compensation | ' | ' | ' | ' |
Stock-based compensation | $367 | $605 | $1,212 | $2,596 |
Cost of sales [Member] | ' | ' | ' | ' |
Summary of stock-based compensation | ' | ' | ' | ' |
Stock-based compensation | 117 | 86 | 239 | 221 |
Selling, general, and administrative expenses [Member] | ' | ' | ' | ' |
Summary of stock-based compensation | ' | ' | ' | ' |
Stock-based compensation | 250 | 519 | 973 | 2,375 |
Stock Options [Member] | ' | ' | ' | ' |
Summary of stock-based compensation | ' | ' | ' | ' |
Stock-based compensation | 89 | 175 | 211 | 1,055 |
Restricted and performance stock awards and units [Member] | ' | ' | ' | ' |
Summary of stock-based compensation | ' | ' | ' | ' |
Stock-based compensation | $278 | $430 | $1,001 | $1,541 |
StockBased_Compensation_Detail5
Stock-Based Compensation (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | 19-May-10 | Jul. 20, 2005 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | |
plan | plan | Common Stock Class A [Member] | Common Stock Class A [Member] | Common Stock Class A [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Performance Shares [Member] | Performance Stock Units (PSUs) [Member] | Nonvested Restricted Common Stock and Performance Shares [Member] | Restricted common stock and performance stock awards [Member] | |||
2005 Plan [Member] | 2005 Plan [Member] | Minimum [Member] | Maximum [Member] | 2005 Plan [Member] | 2005 Plan [Member] | Minimum [Member] | Maximum [Member] | 2005 Plan [Member] | 2005 Plan [Member] | 2005 Plan [Member] | ||||||||||
2005 Plan [Member] | 2005 Plan [Member] | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of plans with shares available for grant | 1 | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of incentive awards of Common Stock | ' | ' | ' | ' | ' | 17,500,000 | 12,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate common stock issued | ' | ' | ' | ' | 22,557,528 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for future grants | 4,411,479 | ' | 4,411,479 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '5 years | ' | ' | '1 year | '3 years | ' | ' | ' | ' | ' | ' |
Award expiration period | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expenses, stock options | $400,000 | ' | $400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $800,000 | ' | ' | ' | $2,100,000 | $1,300,000 |
Average Period of recognition for unrecognized Compensation expenses | ' | ' | ' | ' | ' | ' | ' | '1 year 9 months 3 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 1 month 3 days | ' |
Weighted average grant date fair value | $1.13 | $0.94 | $1.13 | $1.08 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value for options exercised (less than $.1 million) | 100,000 | 0 | 200,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from option exercises (less than $.1 million) | ' | ' | $700,000 | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 234,759 | 401,370 | ' | ' | ' | 249,338 | 261,533 | 183,758 | 929,388 | ' |
Stock granted, weighted average grant date fair value per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.03 | $3.22 | ' | ' | ' | $3.67 | $2.95 | $3.09 | $3.19 | ' |
Additional grants available upon meeting target | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,375 | ' | ' |
Senior_Revolving_Credit_Facili1
Senior Revolving Credit Facility (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||||||
Nov. 02, 2013 | Nov. 02, 2013 | Feb. 03, 2011 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | |
Minimum [Member] | Senior revolving credit facility [Member] | Open documentary letters of credit [Member] | Standby Letters of Credit [Member] | Federal Funds Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | Base Rate [Member] | Base Rate [Member] | ||
Minimum [Member] | Maximum [Member] | Commercial letters of credit [Member] | Minimum [Member] | Maximum [Member] | ||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of senior revolving credit facility | ' | ' | $35,000,000 | $2,000,000 | $1,700,000 | ' | ' | ' | ' | ' | ' | ' |
Increased senior revolving credit facility | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding credit extensions, maximum percentage | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding credit extensions amount | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | 0.50% | 1.00% | 1.50% | 2.00% | 23.00% | 0.50% | 1.00% |
Unused portion of the line of credit | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual interest rate on the revolving credit facility | '(i)B the higher of the lenderbs prime rate, the Federal funds rate plus 0.5% or the one month London InterBank Offered Rate (LIBOR) plus 1.0%, collectively referred to as the bBase Rateb, plus the applicable margin ranging from 0.5% to 1.0% or, (ii)B if the Company elects, either the one, two, three or six months LIBOR plus a margin ranging from 1.5% to 2.0%. The applicable Base Rate or LIBOR margin is based on the level of average excess availability, as defined under the Facility, at the time of election, as adjusted quarterly . | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash advances and the issuance of additional letters of credit | $31,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_and_Di2
Fair Value Measurements and Disclosures (Details) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 | Oct. 27, 2012 |
In Thousands, unless otherwise specified | |||
Carrying Amount [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Cash and cash equivalents | $30,084 | $42,279 | $126,343 |
Short-term investments | 35,812 | 67,694 | ' |
Tenant allowances receivable | 1,029 | ' | ' |
Long-term tenant allowances receivable | ' | 960 | 938 |
Carrying Amount [Member] | Cash [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Cash and cash equivalents | 16,098 | 5,612 | 21,992 |
Carrying Amount [Member] | Money Market Funds [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Cash and cash equivalents | 13,986 | 36,667 | 104,351 |
Carrying Amount [Member] | Certificates of Deposit [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Short-term investments | 5,490 | 5,053 | ' |
Carrying Amount [Member] | US Treasury Securities [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Short-term investments | 4,994 | 19,991 | ' |
Carrying Amount [Member] | US Government Securities [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Short-term investments | 25,328 | 42,650 | ' |
Level 1 [Member] | Fair Value Measurements at Reporting Date [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Short-term investments | ' | 0 | ' |
Long-term tenant allowances receivable | 0 | 0 | 0 |
Level 1 [Member] | Fair Value Measurements at Reporting Date [Member] | Cash [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Cash and cash equivalents | 16,098 | 5,612 | 21,992 |
Level 1 [Member] | Fair Value Measurements at Reporting Date [Member] | Money Market Funds [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 |
Level 1 [Member] | Fair Value Measurements at Reporting Date [Member] | Certificates of Deposit [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Short-term investments | 0 | 0 | ' |
Level 1 [Member] | Fair Value Measurements at Reporting Date [Member] | US Treasury Securities [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Short-term investments | 0 | 0 | ' |
Level 1 [Member] | Fair Value Measurements at Reporting Date [Member] | US Government Securities [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Short-term investments | 0 | 0 | ' |
Level 2 [Member] | Fair Value Measurements at Reporting Date [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Short-term investments | ' | 0 | ' |
Long-term tenant allowances receivable | 0 | 0 | 0 |
Level 2 [Member] | Fair Value Measurements at Reporting Date [Member] | Cash [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 |
Level 2 [Member] | Fair Value Measurements at Reporting Date [Member] | Money Market Funds [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Cash and cash equivalents | 13,986 | 36,667 | 104,351 |
Level 2 [Member] | Fair Value Measurements at Reporting Date [Member] | Certificates of Deposit [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Short-term investments | 5,476 | 5,047 | ' |
Level 2 [Member] | Fair Value Measurements at Reporting Date [Member] | US Treasury Securities [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Short-term investments | 5,000 | 19,991 | ' |
Level 2 [Member] | Fair Value Measurements at Reporting Date [Member] | US Government Securities [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Short-term investments | 25,303 | 42,592 | ' |
Level 3 [Member] | Fair Value Measurements at Reporting Date [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Short-term investments | ' | 0 | ' |
Tenant allowances receivable | 1,029 | ' | ' |
Long-term tenant allowances receivable | ' | 960 | 938 |
Level 3 [Member] | Fair Value Measurements at Reporting Date [Member] | Cash [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 |
Level 3 [Member] | Fair Value Measurements at Reporting Date [Member] | Money Market Funds [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 |
Level 3 [Member] | Fair Value Measurements at Reporting Date [Member] | Certificates of Deposit [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Short-term investments | 0 | 0 | ' |
Level 3 [Member] | Fair Value Measurements at Reporting Date [Member] | US Treasury Securities [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Short-term investments | 0 | 0 | ' |
Level 3 [Member] | Fair Value Measurements at Reporting Date [Member] | US Government Securities [Member] | ' | ' | ' |
Summary of company's financial instruments | ' | ' | ' |
Short-term investments | $0 | $0 | ' |
Fair_Value_Measurements_and_Di3
Fair Value Measurements and Disclosures (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | |
Fair Value Disclosures [Abstract] | ' | ' | ' | ' |
Money market funds | $1 | ' | $1 | ' |
Incremental borrowing rate | 9.26% | ' | ' | ' |
Collection period long term tenant allowance receivables | '5 years | ' | ' | ' |
Asset impairment | $5,061,000 | $6,456,000 | $6,919,000 | $19,035,000 |
Net_Loss_Per_Share_Details1
Net Loss Per Share (Details1) | 3 Months Ended | 9 Months Ended | ||
Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | |
Antidilutive securities excluded from computation of net (loss) income per share, diluted | ' | ' | ' | ' |
Total | 1,956,506 | 3,430,241 | 1,762,380 | 4,152,910 |
Stock options outstanding [Member] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of net (loss) income per share, diluted | ' | ' | ' | ' |
Total | 567,225 | 2,592,016 | 471,806 | 2,592,419 |
Unvested restricted and performance stock awards and units [Member] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of net (loss) income per share, diluted | ' | ' | ' | ' |
Total | 1,389,281 | 838,225 | 1,290,574 | 1,560,491 |
Net_Loss_Per_Share_Details_Tex
Net Loss Per Share (Details Textual) (USD $) | 9 Months Ended |
Nov. 02, 2013 | |
Net Income (loss) Per Share (Textual) [Abstract] | ' |
Cash dividend paid | $0 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Nov. 02, 2013 | Mar. 31, 2013 | 8-May-13 | Jun. 30, 2013 |
In Millions, unless otherwise specified | Individual Complaints [Member] | Central District of California on Behalf of Certain of the Company's Current and Former African American Retail Employees [Member] | Central District of California on Behalf of Certain of the Company's Current and Former African American Retail Employees [Member] | |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Payments for legal settlements | ' | $0.80 | ' | $7.50 |
Litigation settlement amount | ' | ' | 7.5 | ' |
Loss contingency accrual | $0.20 | ' | ' | ' |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Operating Segments | ' | ' | ' | ' |
Net sales | $127,664 | $135,537 | $405,358 | $418,743 |
Percentage of consolidated net sales | 100.00% | 100.00% | 100.00% | 100.00% |
Operating loss | -14,855 | -24,816 | -10,679 | -44,800 |
Depreciation and amortization expense | 3,423 | 4,268 | 10,198 | 13,531 |
Interest income | 49 | 35 | 150 | 108 |
Interest expense | -55 | -45 | -163 | -136 |
Loss before benefit for income taxes | -14,861 | -24,826 | -10,692 | -44,828 |
Wet Seal [Member] | ' | ' | ' | ' |
Operating Segments | ' | ' | ' | ' |
Net sales | 114,878 | 117,892 | 358,245 | 357,806 |
Percentage of consolidated net sales | 90.00% | 87.00% | 88.00% | 85.00% |
Operating loss | -4,575 | -8,747 | 13,928 | -8,003 |
Depreciation and amortization expense | 2,615 | 3,442 | 7,934 | 11,022 |
Interest income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Loss before benefit for income taxes | -4,575 | -8,747 | 13,928 | -8,003 |
Arden B [Member] | ' | ' | ' | ' |
Operating Segments | ' | ' | ' | ' |
Net sales | 12,786 | 17,645 | 47,113 | 60,937 |
Percentage of consolidated net sales | 10.00% | 13.00% | 12.00% | 15.00% |
Operating loss | -2,427 | -3,733 | -1,380 | -6,614 |
Depreciation and amortization expense | 304 | 404 | 882 | 1,314 |
Interest income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Loss before benefit for income taxes | -2,427 | -3,733 | -1,380 | -6,614 |
Corporate and Unallocated [Member] | ' | ' | ' | ' |
Operating Segments | ' | ' | ' | ' |
Net sales | 0 | 0 | 0 | 0 |
Percentage of consolidated net sales | 0.00% | 0.00% | 0.00% | 0.00% |
Operating loss | -7,853 | -12,336 | -23,227 | -30,183 |
Depreciation and amortization expense | 504 | 422 | 1,382 | 1,195 |
Interest income | 49 | 35 | 150 | 108 |
Interest expense | -55 | -45 | -163 | -136 |
Loss before benefit for income taxes | ($7,859) | ($12,346) | ($23,240) | ($30,211) |
Segment_Reporting_Details_Text
Segment Reporting (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Number of operating segments | ' | ' | 2 | ' |
Increase (decrease) in loss contingency | ' | ' | ($3.50) | ' |
Wet Seal [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income (loss) of asset impairment charges | 4.8 | 5.8 | 6.1 | 16.3 |
Arden B [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income (loss) of asset impairment charges | 0.3 | 0.7 | 0.8 | 2.7 |
Corporate [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Severance costs | ' | 0.1 | ' | 2 |
Professional fees | ' | $2.10 | ' | $2.10 |
Treasury_Stock_Details
Treasury Stock (Details) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended |
Feb. 01, 2013 | Nov. 02, 2013 | Aug. 22, 2013 | Nov. 02, 2013 | |
Common Stock Class A [Member] | Common Stock Class A [Member] | |||
Class of Stock [Line Items] | ' | ' | ' | ' |
Stock repurchase program, authorized amount | $25,000,000 | ' | ' | ' |
Stock repurchased in period (in shares) | ' | ' | ' | 5,565,873 |
Stock repurchased average cost per share | ' | ' | ' | $4.48 |
Stock repurchased during period, value | ' | ' | ' | 25,000,000 |
Shares paid to satisfy employee withholding tax obligations | ' | 90,703 | ' | ' |
Payments related to tax withholding for share-based compensation | ' | $300,000 | ' | ' |
Forfeitures of stock-based compensation (in shares) | ' | 56,201 | ' | ' |
Treasury shares retired | ' | ' | 6,517,370 | ' |