Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 28, 2017 | Apr. 28, 2017 | Jul. 31, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Perfumania Holdings, Inc. | ||
Entity Central Index Key | 880,460 | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 28, 2017 | ||
Document Fiscal Year Focus | 29,953,000 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 15,493,763 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 12,600,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 28, 2017 | Jan. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 7,474 | $ 5,640 |
Accounts receivable, net of allowances of $1,233 and $1,271 as of January 30, 2016 and January 31, 2015, respectively | 25,572 | 29,602 |
Inventories | 196,654 | 221,336 |
Prepaid expenses and other current assets | 10,619 | 9,862 |
Total current assets | 240,319 | 266,440 |
Property and equipment, net | 16,692 | 25,892 |
Goodwill | 38,769 | 38,769 |
Intangible and other assets, net | 14,520 | 19,945 |
Total assets | 310,300 | 351,046 |
Current liabilities: | ||
Accounts payable | 28,605 | 32,175 |
Accounts payable-affiliates | 1,027 | 300 |
Accrued expenses and other liabilities | 28,686 | 33,205 |
Current portion of obligations under capital leases and other long-term debt | 1,237 | 1,248 |
Total current liabilities | 59,555 | 66,928 |
Revolving credit facility interest payable monthly, secured by a pledge of substantially all of the Company's assets | 0 | 13,078 |
Notes payable-affiliates | 125,366 | 125,366 |
Long-term portion of obligations under capital leases | 0 | 1,223 |
Other long-term liabilities | 64,954 | 60,474 |
Total liabilities | 249,875 | 267,069 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, $0.10 par value, 1,000,000 shares authorized; as of January 30, 2016 and January 31, 2015, none issued | 0 | 0 |
Common stock, $.01 par value, 35,000,000 shares authorized; 16,392,012 shares and 16,374,625 shares issued as of January 30, 2016 and January 31, 2015, respectively | 164 | 164 |
Additional paid-in capital | 222,048 | 221,961 |
Accumulated deficit | (153,210) | (129,571) |
Treasury stock, at cost, 898,249 shares as of January 30, 2016 and January 31, 2015 | (8,577) | (8,577) |
Total shareholders’ equity | 60,425 | 83,977 |
Total liabilities and shareholders’ equity | $ 310,300 | $ 351,046 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2015 | Feb. 01, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowances of $1,233 and $1,271 as of January 30, 2016 and January 31, 2015, respectively | $ 1 | $ 1,271 |
Preferred stock par value | $ 0.10 | $ 0.10 |
Preferred stock shares authorized | 1,000,000 | 1,000,000 |
Preferred stock shares issued | 0 | 0 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 35,000,000 | 35,000,000 |
Common stock shares issued | 16,374,625 | 16,374,625 |
Treasury stock shares | 898,249 | 898,249 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 28, 2017 | Jan. 30, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 468,865 | $ 541,964 |
Cost of goods sold | 247,533 | 284,340 |
Gross profit | 221,332 | 257,624 |
Operating expenses: | ||
Selling, general and administrative expenses | 222,373 | 249,540 |
Asset impairment | 6,945 | 1,032 |
Share-based compensation expense | 87 | 297 |
Depreciation and amortization | 8,622 | 10,784 |
Total operating expenses | 238,027 | 261,653 |
(Loss) income from operations | (16,695) | (4,029) |
Interest expense | 7,143 | 7,191 |
(Loss) income before income tax provision | (23,838) | (11,220) |
Income tax provision | (199) | 451 |
Net (loss) income | $ (23,639) | $ (11,671) |
Net (loss) income per common share: | ||
Basic and diluted | $ (1.53) | $ (0.75) |
Weighted average number of common shares outstanding: | ||
Basic | 15,493,763 | 15,486,957 |
Diluted | 15,493,763 | 15,486,957 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Treasury Stock |
Balance, shares at Jan. 31, 2015 | 16,374,625 | 898,249 | |||
Balance at Jan. 31, 2015 | $ 95,294 | $ 164 | $ 221,607 | $ (117,900) | $ (8,577) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation | 297 | 297 | |||
Exercise of stock options (shares) | 17,387 | ||||
Exercise of stock options | 57 | $ 0 | 57 | ||
Net (loss) income | (11,671) | (11,671) | |||
Balance, shares at Jan. 30, 2016 | 16,392,012 | 898,249 | |||
Balance at Jan. 30, 2016 | 83,977 | $ 164 | 221,961 | (129,571) | $ (8,577) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation | 87 | 87 | |||
Net (loss) income | (23,639) | (23,639) | |||
Balance, shares at Jan. 28, 2017 | 16,392,012 | 898,249 | |||
Balance at Jan. 28, 2017 | $ 60,425 | $ 164 | $ 222,048 | $ (153,210) | $ (8,577) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 28, 2017 | Jan. 30, 2016 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (23,639) | $ (11,671) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Asset impairment | 6,945 | 1,032 |
Depreciation and amortization | 8,622 | 10,784 |
Amortization of deferred financing costs | 343 | 343 |
(Benefit) provision for losses on accounts receivable | 1,716 | (30) |
Share-based compensation | 87 | 297 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,314 | (1,795) |
Inventories | 24,682 | 32,035 |
Prepaid expenses and other assets | 1,076 | 5,409 |
Accounts payable | (3,570) | (7,088) |
Accounts payable-affiliates | 727 | 31 |
Accrued expenses and other liabilities, and other long-term liabilities | (39) | 8,763 |
Net cash provided by operating activities | 19,264 | 38,110 |
Cash flows from investing activities: | ||
Additions to property and equipment | (3,118) | (8,485) |
Net cash used in investing activities | (3,118) | (8,485) |
Cash flows from financing activities: | ||
Net repayments under bank line of credit | (13,078) | (24,483) |
Principal payments under capital lease obligations | (1,234) | (1,092) |
Proceeds from exercise of stock options and warrants | 0 | 57 |
Net cash used in financing activities | (14,312) | (25,518) |
Net increase (decrease) in cash and cash equivalents | 1,834 | 4,107 |
Cash and cash equivalents at beginning of year | 5,640 | 1,533 |
Cash and cash equivalents at end of year | 7,474 | 5,640 |
Cash paid during the period for: | ||
Interest | 1,153 | 1,567 |
Income taxes | 278 | 634 |
Income taxes | $ 278 | $ 634 |
Nature of Business
Nature of Business | 12 Months Ended |
Jan. 28, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS | NATURE OF BUSINESS Perfumania Holdings, Inc. (the "Company”) a Florida corporation, is an independent, national, vertically integrated wholesale distributor and specialty retailer of perfumes and fragrances that does business through six wholly-owned operating subsidiaries, Perfumania, Inc. (“Perfumania”), Quality King Fragrances, Inc. (“QFG”), Scents of Worth, Inc. (“SOW”), Perfumania.com, Inc. (“Perfumania.com”), Parlux Fragrances, LLC (“Parlux”) and Five Star Fragrances, Inc. (“Five Star”). The Company's wholesale business includes QFG, Parlux and Five Star. QFG distributes designer fragrances to mass market retailers, drug and other chain stores, retail wholesale clubs, traditional wholesalers, and other distributors throughout the United States. It sells principally to retailers such as CVS, Kohl's, Marshalls, Nordstrom Rack, Ross Stores, Sears, Target, Wal-Mart and Walgreens. The Company's manufacturing divisions include Parlux and Five Star, and the results of operations of both divisions are included in the Company's wholesale business. Parlux and Five Star both own and license designer and other fragrance brands that are sold to national and regional department stores, including Belk, Bon Ton, Boscovs, Dillards, Macy's, Nordstrom and Stage Stores, international distributors, on military bases throughout the United States, by QFG and through the Company's retail business which is discussed below. Parlux also fulfills a selection of fragrances for several online retailers, shipping directly to their customers and billing the retailers. Five Star also manufactures, on behalf of Perfumania, the Jerome Privee product line, which includes bath and body products and which is sold exclusively in Perfumania's retail stores. All manufacturing operations of Parlux and Five Star are outsourced. The Company’s retail business is conducted through its subsidiaries, 1) Perfumania, a specialty retailer of fragrances and related products, 2) Perfumania.com, an Internet retailer of fragrances and other specialty items and 3) SOW, which sells fragrances in retail stores on a consignment basis. Perfumania is a leading specialty retailer and distributor of a wide range of brand name and designer fragrances. As of January 28, 2017 , Perfumania operated a chain of 287 retail stores, specializing in the sale of fragrances and related products at discounted prices up to 75% below the manufacturers’ suggested retail prices. Perfumania’s retail stores are located in regional malls, manufacturers’ outlet malls, lifestyle centers, airports and on a stand-alone basis in suburban strip shopping centers, throughout the United States, Puerto Rico and the United States Virgin Islands. During the first quarter of fiscal 2017, the Company closed 43 retail stores. Perfumania.com offers a selection of our more popular products for sale over the Internet and serves as an alternative shopping experience to the Perfumania retail stores. SOW operates the largest national designer fragrance consignment program, with contractual relationships to sell products on a consignment basis in approximately 1,600 stores, including more than 600 Kmart locations nationwide. Its other retail customers include Bealls, Steinmart and K&G. There were no customers which accounted for more than 10% of net sales in fiscal 2016 or 2015 . |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jan. 28, 2017 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Significant accounting policies and practices used by the Company in the preparation of the accompanying consolidated financial statements are as follows: FISCAL YEAR END The Company’s fiscal year ends on the Saturday closest to January 31 to enable the Company’s operations to be reported in a manner consistent with general retail reporting practices and the financial reporting needs of the Company. In the accompanying notes, fiscal 2016 refers to the fiscal year beginning January 31, 2016 and ending January 28, 2017 and fiscal 2015 refers to the fiscal year beginning February 1, 2015 and ending January 30, 2016 . Fiscal 2016 and fiscal 2015 both contain 52 weeks. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. MANAGEMENT ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates made by management in the accompanying consolidated financial statements relate to the valuation of accounts receivable and inventory balances, accruals for sales returns and allowances, long-lived asset impairments and deferred tax assets. Actual results could differ from those estimates. CASH AND CASH EQUIVALENTS All highly liquid investments with original maturities of three months or less are classified as cash and cash equivalents. The fair value of cash and cash equivalents approximates the amounts shown on the consolidated financial statements. Cash and cash equivalents consist of unrestricted cash in accounts maintained with major financial institutions. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company reduces credit risk by placing its cash and cash equivalents with major financial institutions with high credit ratings. At times, such amounts may exceed federally insured limits. ACCOUNTS RECEIVABLE The Company’s accounts receivable consist primarily of trade receivables due from wholesale sales. Also included are credit card receivables and receivables due from consignment sales relating to the Company’s retail business segment. Generally, there are three to four days of retail sales transactions outstanding with third-party credit card vendors and approximately one to two weeks of consignment retail sales at any point in time. An allowance for doubtful accounts is determined through analysis of the aging of accounts receivable at the date of the consolidated financial statements, assessments of collectability based on an evaluation of historical and anticipated trends, the financial condition of the Company’s customers and an evaluation of the impact of economic conditions. In May 2016, a Panama based customer of Parlux that distributes in certain Latin American countries was placed on the Specially Designated Nationals list by the Office of Foreign Assets Control of the U.S. Treasury Department. As a result, the customer's assets were frozen and any dealings between U.S. companies, including Parlux, and the customer have been prohibited. Accordingly, during fiscal 2016 , management reserved the outstanding accounts receivable balance from the customer of approximately $1.7 million due to the uncertainty of future collection of these receivables. INVENTORIES Inventories, principally consisting of finished goods, are stated at the lower of cost or market with cost being determined on a weighted average basis. The cost of inventory includes product cost and certain freight charges. Write-offs of potentially slow moving or damaged inventory are recorded based on management’s analysis of inventory levels, future sales forecasts and through specific identification of obsolete or damaged merchandise. PROPERTY AND EQUIPMENT Property and equipment is carried at cost, less accumulated depreciation and amortization. Depreciation for property and equipment, which includes assets under capital leases, is calculated using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the term of the lease including one stated renewal period that is reasonably assured, or the estimated useful lives of the improvements, generally ten years , with the exception of the improvements on the corporate office and warehouse in Bellport, New York which has a lease term of 20 years . Costs of major additions and improvements are capitalized and expenditures for maintenance and repairs which do not extend the useful life of the asset are expensed when incurred. Gains or losses arising from sales or retirements are reflected in operations. See Note 5. GOODWILL AND INTANGIBLE ASSETS Goodwill is calculated as the excess of the cost of purchased businesses over the fair value of their underlying net assets. Other intangible assets principally consist of license agreements, tradenames and customer relationships. Goodwill is allocated and evaluated at the reporting unit level, which is at the Company's operating segment level. All goodwill has been allocated to the Company's wholesale segment. Goodwill and other intangible assets with indefinite lives are not amortized, but rather are evaluated for impairment annually during the Company's fourth quarter or whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Impairment testing for goodwill is performed in two steps: (i) the determination of possible impairment, based upon the fair value of a reporting unit as compared to its carrying value; and (ii) if there is a possible impairment indicated, this step measures the amount of impairment loss, if any, by comparing the implied fair value of goodwill with the carrying amount of that goodwill. The fair values of indefinite-lived intangible assets are estimated and compared to their respective carrying values. Trademarks, including tradenames and owned licenses having finite lives, are recorded at cost and are amortized over their respective lives to their estimated residual values and are also reviewed for impairment when changes in circumstances indicate the assets’ value may be impaired. Impairment testing is based on a review of forecasted operating cash flows and the profitability of the related brand. GIFT CARDS Upon the purchase of a gift card by a retail customer, a liability is established for the cash value of the gift card. The liability is included in accrued expenses and other liabilities. The liability is relieved and revenue is recognized at the time of the redemption of the gift card. Over time, some portion of gift cards issued is not redeemed. If this amount is determined to be material to the Company’s consolidated financial statements, it will be recorded as a reduction of selling, general and administrative expenses, when it can be determined that the likelihood of the gift card being redeemed is remote and there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions (often referred to as gift card breakage). No gift card breakage has been recorded in the consolidated statements of operations for any year presented in these consolidated financial statements. Gift cards issued by the Company do not have expiration dates. LOYALTY REWARDS PROGRAM Perfumania and Perfumania.com offer a customer loyalty rewards program which allows members to earn points and other benefits for qualifying purchases. Points earned may be used by members to receive discounts on future purchases at our Perfumania stores or Perfumania.com website. The value of points earned by our loyalty rewards program members is included in accrued liabilities and recorded as a reduction of revenue at the time the points are earned. Revenue is recognized when points are redeemed by the customer. The value of points accrued as of January 28, 2017 and January 30, 2016 was approximately $1.7 million and $0.3 million , respectively. ACCRUED EXPENSES Accrued expenses for self-insured employee medical benefits, contracted advertising, sales allowances, professional fees and other outstanding obligations are assessed based on claims experience and statistical trends, open contractual obligations and estimates based on projections and current requirements. If these trends change significantly, then actual results would likely be impacted. REVENUE RECOGNITION Revenue from wholesale transactions is recognized when title passes, which occurs either upon shipment of products or delivery to the customer. Revenue from retail sales is recorded, net of discounts, at the point of sale for Perfumania stores, and for consignment sales, when sale to the ultimate customer occurs. Revenue from sales where we ship the merchandise to the customer from a store or distribution center and from Internet sales is recognized at the time products are delivered to customers. Shipping and handling revenue billed to customers is included as a component of net sales. Revenues are presented net of any taxes collected from customers and remitted to government agencies. Revenue from gift cards is recognized at the time of redemption. Returns of store and Internet sales are allowed within 30 days of purchase. SALES AND ALLOWANCES Allowances for sales returns are estimated and recorded as a reduction of sales based on our historical and projected return patterns and considering current external factors and market conditions. Allowances provided for advertising, marketing and tradeshows are recorded as selling expenses since they are costs for services received from the customer which are separable from the customer’s purchase of the Company’s products. Accruals and allowances are estimated based on available information including third-party and historical data. COST OF GOODS SOLD Cost of goods sold include the cost of merchandise sold, inventory valuation writedowns, inventory shortages, damages and freight charges. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and administrative expenses include payroll and related benefits for the Company's store operations, field management, distribution center, purchasing and other corporate office and administrative personnel; rent, common area maintenance, real estate taxes and utilities for the Company's stores, distribution centers and corporate office; certain freight charges, advertising, consignment fees, sales promotion, royalties, insurance, supplies, professional fees and other administrative expenses. INCOME TAXES Deferred tax assets and liabilities are recognized for the differences between the financial reporting carrying values and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is recognized to reduce net deferred tax assets to amounts that management believes are more likely than not expected to be realized. Significant judgment is required in determining the provision for income taxes. Changes in estimates may create volatility in the Company’s effective tax rate in future periods for various reasons including, but not limited to: changes in tax laws/rates, forecasted amounts and mix of pre-tax income/loss, settlements with various tax authorities, the expiration of the statute of limitations on some tax positions and obtaining new information about particular tax positions that may cause management to change its estimates. In the ordinary course of business, the ultimate tax outcome is uncertain for many transactions. It is the Company’s policy to recognize, at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority, the impact of an uncertain income tax position on its income tax return. The tax provisions are analyzed at least quarterly and adjustments are made as events occur that warrant adjustments to those provisions. The Company records interest expense and penalties payable to relevant tax authorities as income tax expense. GAAP prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in an income tax return. The Company may recognize the tax benefit from an uncertain tax position only if it is more-likely-than-not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. See further discussion at Note 9. BASIC AND DILUTED NET LOSS PER COMMON SHARE Basic net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per common share includes, in periods in which they are dilutive, the dilutive effect of those common stock equivalents where the average market price of the common shares exceeds the exercise prices for the respective years. Basic and diluted net loss per common share are computed as follows: Fiscal Year Ended Fiscal Year Ended ($ in thousands, except share and per share amounts) Net loss - basic and diluted $(23,639) $(11,671) Denominator: Weighted average number of common shares for basic and diluted net loss per share 15,493,763 15,486,957 Basic and diluted loss per common share $(1.53) $(0.75) In fiscal 2016 and 2015 , 7,483,971 and 7,275,887 potential shares of common stock, respectively, relating to stock option awards and warrants were excluded from the diluted loss per share calculation, as the effect of including these potential shares was antidilutive due to the net loss reported in each year. ACCOUNTING FOR THE IMPAIRMENT OF LONG-LIVED ASSETS The carrying value of long-lived assets is evaluated whenever events or changes in circumstances indicate that the carrying values of such assets may be impaired. An evaluation of recoverability is performed by comparing the carrying values of the assets to projected undiscounted future cash flows in addition to other quantitative and qualitative analysis, including management’s strategic plans and market trends. Upon indication that the carrying values of such assets may not be recoverable, the Company recognizes an impairment loss. The impairment loss is determined based on the difference between the net book value and the fair value of the assets. The estimated fair value is based on anticipated discounted future cash flows. Any impairment is charged to operations in the period in which it is identified. Property and equipment assets are grouped at the lowest level for which there are identifiable cash flows when assessing impairment. Cash flows for retail assets are identified at the individual store level. See Notes 4 and 5 for a discussion of impairment charges for intangible assets and long-lived assets recorded in fiscal 2016 and 2015 . SHARE-BASED COMPENSATION Share-based compensation expense is recognized on a straight-line basis over the requisite service period. The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model. See further discussion at Note 11. PRE-OPENING EXPENSES Pre-opening expenses related to new stores are expensed as incurred. SHIPPING AND HANDLING FEES AND COSTS The cost related to shipping and handling for wholesale sales is classified as freight out, which is included in selling, general and administrative expenses. Income generated by retail sales from shipping and handling fees is classified as revenues and the costs related to shipping and handling are classified as cost of goods sold. ADVERTISING AND PROMOTIONAL COSTS Advertising and promotional costs for fiscal 2016 and fiscal 2015 were approximately $58.5 million and $70.5 million , respectively, and are charged to expense when incurred. RENT EXPENSE The Company leases retail stores as well as offices and distribution centers under operating leases. Minimum rental expenses are recognized over the term of the lease on a straight-line basis. For purposes of recognizing minimum rental expenses, the Company uses the date when possession of the leased space is taken from the landlord, which includes a construction period of approximately two months prior to store opening. For tenant improvement allowances and rent holidays, the Company records a deferred rent liability in accrued expenses on the consolidated balance sheets and amortizes the deferred rent over the terms of the leases as reductions to rent expense on the consolidated statements of operations. For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial occupancy, the Company records minimum rental expenses on a straight-line basis over the terms of the leases on the consolidated statements of operations. The difference between the rental expense recognized and the amount payable under the lease is included in other long-term liabilities on the accompanying consolidated balance sheets. Certain leases provide for contingent rents, which are primarily determined as a percentage of gross sales in excess of specified levels and are not measurable at inception. The Company records a liability in accrued expenses on the consolidated balance sheets and the corresponding rent expense when specified levels have been achieved. FAIR VALUE OF FINANCIAL INSTRUMENTS The fair values of the Company’s assets and liabilities that qualify as financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, short-term debt, and accrued expenses, are carried at cost, which approximates fair value due to the short-term maturity of these instruments. The reported amounts of long-term obligations approximate fair value, given management’s evaluation of the instruments’ current rates compared to market rates of interest and other factors. CONCENTRATIONS OF CREDIT RISK The Company is potentially subject to a concentration of credit risk with respect to its trade receivables, the majority of which are due from retailers and wholesale distributors. Credit risks also relate to the seasonal nature of the business. The Company’s sales are concentrated in November and December for the holiday season. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains allowances to cover potential or anticipated losses for uncollectible accounts. The Company maintains credit insurance on certain receivables, which minimizes the financial impact of uncollectible accounts. RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases , which replaces the existing guidance in Accounting Standard Codification 840, Leases . ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. ASU 2016-02 requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and corresponding lease liability. For finance leases the lessee would recognize interest expense and amortization of the right-of-use asset and for operating leases the lessee would recognize straight-line total lease expense. The Company is currently assessing the new standard and its impact on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes , which modifies the presentation of noncurrent and current deferred taxes. ASU 2015-17 requires that all deferred tax assets and liabilities be classified as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. The standard is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company adopted ASU No. 2015-17 prospectively effective January 28, 2017 . No prior periods were retrospectively adjusted. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , intended to simplify the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the presentation for debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcements at the June 2015 EITF Meeting. ASU 2015-15 amends Subtopic 835-30 to include that the SEC would not object to the deferral and presentation of debt issuance costs as an asset and subsequent amortization of debt issuance costs over the term of the line-of-credit arrangement, whether or not there are any outstanding borrowings on the line-of-credit arrangement. This guidance was effective for fiscal years and interim periods within those years beginning after December 15, 2015, and had to be applied on a retrospective basis with early adoption permitted. This guidance did not have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers . The update outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. In August 2015, the FASB approved a one year deferral of the effective date, to make it effective for annual and interim reporting periods beginning after December 15, 2017. The standard allows for either a full retrospective or a modified retrospective transition method. The guidance is not expected to have a material impact on the Company's consolidated financial statements. |
Inventories
Inventories | 12 Months Ended |
Jan. 28, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following (in thousands): January 28, 2017 January 30, 2016 Raw materials and work in process $30,699 $29,178 Finished goods 165,955 192,158 $196,654 $221,336 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jan. 28, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill in the amount of $38.8 million at both January 28, 2017 and January 30, 2016 resulted from the April 18, 2012 acquisition of Parlux. The following table provides information related to goodwill and intangible assets (in thousands). Intangible assets are included in intangible and other assets, net on the accompanying consolidated balance sheets as of January 28, 2017 and January 30, 2016 : January 28, 2017 January 30, 2016 Useful Life (years) Original Cost Accumulated Amortization Net Book Value Original Cost Accumulated Amortization Net Book Value Goodwill N/A $ 38,769 $ — $ 38,769 $ 38,769 $ — $ 38,769 Tradenames 4-20 9,357 8,084 1,273 9,357 7,696 1,661 Customer relationships 10 5,171 2,500 2,671 5,171 1,982 3,189 Favorable leases 7 886 886 — 886 865 21 License agreements 3-5 16,313 15,643 670 16,313 14,640 1,673 Tradename (non-amortizing) N/A 7,180 — 7,180 8,500 — 8,500 $ 77,676 $ 27,113 $ 50,563 $ 78,996 $ 25,183 $ 53,813 In accordance with GAAP, goodwill and intangible assets with indefinite lives are not amortized, but rather tested for impairment at least annually by comparing the estimated fair values to their carrying values. During fiscal 2016 , we recorded a noncash impairment charge of approximately $1.3 million to reduce the carrying value of Perfumania's tradename to its estimated fair value. Trademarks, including tradenames and owned licenses having finite lives, are amortized over their respective lives to their estimated residual values and are also reviewed for impairment in accordance with accounting standards when changes in circumstances indicate the assets’ values may be impaired. Customer relationships are amortized over the expected period of benefit and license agreements are amortized over the remaining contractual term. Impairment testing is based on a review of forecasted operating cash flows and the profitability of the related brand. Amortization expense associated with intangible assets subject to amortization is included in depreciation and amortization on the accompanying consolidated statements of operations. Amortization expense for intangible assets subject to amortization was $1.9 million and $4.5 million for fiscal years 2016 and 2015 , respectively. The estimated future amortization expense associated with intangible assets subject to amortization is as follows (in thousands): Fiscal Year Amortization Expense 2017 $ 1,427 2018 877 2019 709 2020 684 2021 682 Thereafter 235 $ 4,614 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 28, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consisted of (in thousands): January 28, 2017 January 30, 2016 Estimated Useful Lives (In Years) Buildings and improvements $ 17,122 $ 26,325 Lesser of useful life or lease term Furniture and fixtures 31,404 34,599 5-7 Machinery and equipment 8,784 8,432 3-7 57,310 69,356 Less: Accumulated depreciation (40,618 ) (43,464 ) $ 16,692 $ 25,892 Depreciation and amortization expense on property and equipment for fiscal 2016 and fiscal 2015 was $6.7 million and $6.3 million , respectively which included depreciation expense relating to building and equipment under capital leases of $0.2 million for both fiscal 2016 and 2015 . Accumulated depreciation for building and equipment under capital leases was $0.4 million at January 28, 2017 and $0.2 million at January 30, 2016 . Net assets under capital leases were $0.1 million and $0.2 million at January 28, 2017 and January 30, 2016 , respectively. During fiscal 2016 and 2015 , the Company recorded noncash impairment charges of approximately $5.6 million and $1.0 million , respectively, to reduce the net carrying value of certain retail store assets (primarily leasehold improvements) to their estimated fair value, which was determined based on discounted expected future cash flows. Lower than expected operating cash flow performance relative to the affected assets and the impact of the current economic environment on their projected future results of operations indicated that the carrying value of the related long-lived assets were not recoverable. These asset impairment charges are included in asset impairment in the accompanying consolidated statements of operations. See Note 13 for further discussion of capital leases. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 28, 2017 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | RELATED-PARTY TRANSACTIONS Glenn, Stephen and Arlene Nussdorf owned an aggregate 7,742,282 shares or approximately 50.0% of the total number of shares of the Company’s common stock as of January 28, 2017 , excluding shares issuable upon conversion of certain warrants and not assuming the exercise of any outstanding options. Stephen Nussdorf has served as the Chairman of the Company’s Board of Directors since February 2004 and Executive Chairman of the Board since April 2011. The Nussdorfs are officers and principals of Quality King Distributors, Inc. ("Quality King"), which distributes pharmaceuticals and health and beauty care products, and the Company’s President and Chief Executive Officer, Michael W. Katz is also an executive of Quality King. See Note 8 for a discussion of notes payable to affiliates. Transactions With Affiliated Companies Glenn Nussdorf has an ownership interest in Lighthouse Beauty Marketing, LLC, Lighthouse Beauty, LLC and Lighthouse Beauty KLO, LLC (collectively "Lighthouse Companies"), all of which are manufacturers and distributors of prestige fragrances. He also has an ownership interest in Cloudbreak Holdings, LLC, ("Cloudbreak") which was a manufacturer and distributor of prestige fragrances. The Company has purchased merchandise from the Lighthouse Companies and Cloudbreak, respectively. The Company purchases merchandise from Jacavi Beauty Supply, LLC (“Jacavi”), a fragrance distributor. Jacavi's managing member is Rene Garcia. Rene Garcia, his family trusts and related entities are members of a group that owned an aggregate 2,211,269 shares, or approximately 14.3% , of the total number of shares of the Company's common stock as of January 28, 2017 , excluding shares issuable upon conversion of certain warrants. See disclosure of merchandise purchases in the table below. The Company sells merchandise to Reba Americas LLC ("Reba"), which distributes fragrances primarily in Puerto Rico and the Caribbean. Family trusts of Rene Garcia own 50% of Reba. Net sales to Reba during fiscal 2016 and 2015 were approximately $3.0 million and $2.9 million , respectively. The balance due from Reba as of January 28, 2017 and January 30, 2016 was approximately $0.4 million and $0.2 million , respectively, and is included in accounts receivable, net of allowances, on the accompanying consolidated balance sheets. The Company also purchased certain merchandise from Reba during fiscal 2016 and 2015 . See disclosure of merchandise purchases in the table below. The amounts due to these related companies are non-interest bearing and are included in accounts payable-affiliates in the accompanying consolidated balance sheets. Transactions for merchandise purchases with these related companies during fiscal 2016 and 2015 were as follows: Fiscal Year Ended Fiscal Year Ended Balance Due January 28, 2017 Balance Due January 30, 2016 Lighthouse Companies $ — $ 17 $ 90 $ 134 Jacavi 5,571 17,813 590 29 Quality King 78 68 — (9 ) Cloudbreak — — — 18 Reba 2,294 3,235 337 90 $ 7,943 $ 21,133 $ 1,017 $ 262 On May 1, 2014, pursuant to a termination and trademark license agreement and in consideration for $0.1 million , the Company acquired the license for Isaac Mizrahi fragrances and related products from Cloudbreak. The license agreement had a three-year term with applicable renewal options; however, the Company and the licensor mutually agreed to terminate the license effective January 1, 2016. The Company had a credit of $0.3 million for advance royalty payments which was paid by Cloudbreak to the licensor, and which the Company utilized during fiscal 2015 . Effective May 1, 2014, and pursuant to certain termination, consent, representation and trademark license agreements, the Company acquired the license for Major League Baseball (“MLB”) fragrances and related products from Cloudbreak. Pursuant to these agreements, the Company paid approximately $0.1 million of fees that were due by Cloudbreak and is permitted to purchase Cloudbreak’s May 1, 2014 on-hand MLB finished goods fragrance inventory. The license agreement terminates on December 31, 2017. Glenn, Stephen and Arlene Nussdorf own GSN Trucking, Inc. (“GSN”) which provides general transportation and freight services. The Company periodically utilizes GSN to transport both inbound purchases of merchandise and outbound shipments to wholesale customers. During fiscal 2016 and 2015 , total payments to GSN for transportation services provided were less than $0.1 million . There was no balance due to GSN at January 28, 2017 and January 30, 2016 . Quality King occupies a leased 560,000 square foot facility in Bellport, New York. The Company began occupying approximately half of this facility in December 2007 under a sublease that terminates on September 30, 2027 and this location serves as the Company’s principal offices. As of January 28, 2017 , the monthly current sublease payments are approximately $240,000 and increase by 3% annually. Total payments by the Company to Quality King for this sublease were approximately $2.8 million and $2.7 million during fiscal 2016 and 2015 , respectively. The Company and Quality King are parties to a Services Agreement providing for the Company’s participation in certain third-party arrangements at the Company’s respective share of Quality King’s cost, including allocated overhead, plus a 2% administrative fee, and the provision of legal services. The Company also shares with Quality King the economic benefit of the bulk rate contract that the Company has with UPS to ship Quality King’s merchandise and related items. The Services Agreement will terminate on thirty days’ written notice from either party. During fiscal 2016 and 2015 , the expenses charged under these arrangements to the Company were $0.9 million and $1.0 million , respectively. The balance due to Quality King for expenses charged under the Services Agreement was less than $0.1 million at January 28, 2017 and January 30, 2016 . On April 18, 2012, Parlux, Artistic Brands Development LLC ("Artistic Brands") (a company controlled by Rene Garcia), Shawn C. Carter (who is the beneficial owner of 10% of the Company's common stock) and S. Carter Enterprises, LLC entered into a sublicense agreement and Artistic Brands, Shawn Carter and S. Carter Enterprises, LLC entered into a license agreement. In connection with these agreements, the Company issued to Artistic Brands and its designees, including Shawn Carter, warrants for the purchase of an aggregate of 1,599,999 shares of the Company's common stock at an exercise price of $8.00 per share. Pursuant to the license agreement, Artistic Brands obtained the exclusive right and license to manufacture, promote, distribute, and sell prestige fragrances and related products under the Jay-Z trademark. The initial term of the license agreement expires at the earlier of (i) five years following the first date on which licensed products are shipped and (ii) December 31, 2018. Artistic Brands has the right to renew the license agreement, so long as certain financial conditions are met and it has not otherwise breached the agreement. Pursuant to the license agreement, Artistic Brands agreed to make certain royalty payments, including certain guaranteed minimum royalties. Pursuant to the sublicense agreement, Artistic Brands sublicensed all rights granted under the license agreement to the Company, and in return the Company assumed all of the Artistic Brands' obligations under the license agreement, including making all royalty payments and certain guaranteed minimum royalties owed to S. Carter Enterprises, LLC. The Company paid $0.3 million of royalties pursuant to the sublicense agreement during fiscal 2015 . No royalties were paid during fiscal 2016 . On January 25, 2016, the Company and Parlux filed a lawsuit against S. Carter Enterprises, LLC and Shawn C. Carter in the Supreme Court of the State of New York, County of New York. In general, the lawsuit alleges that the defendants have breached the license described above and related agreements by not acting timely or in good-faith in approving products and launches under the license and not supporting the brand via personal appearances as required by the license. The lawsuit seeks a determination that such breaches undermine the essence of the license thereby warranting rescission of the license, return of the consideration paid on account of the license and related agreements, monetary damages, and other relief. On May 6, 2016, the defendants filed an answer in the nature of a general denial, with a counterclaim for, inter alia, amounts allegedly due to them under the license agreements in the amount of approximately $2.7 million . The Company has filed a reply to that counterclaim in the nature of a general denial. The Court has set a schedule which calls for the conclusion of fact and expert discovery by January 2018, with dispositive motion practice to follow. The parties have commenced discovery, which is ongoing. The Company intends to vigorously pursue its claims and to defend the counterclaim. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Jan. 28, 2017 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following (in thousands): January 28, 2017 January 30, 2016 Payroll and related $ 6,564 $ 7,939 Customer allowances 2,766 4,691 Advertising, promotion and royalties 7,250 8,592 Taxes other than income taxes 611 585 Insurance 1,127 1,263 Other 10,368 10,135 $ 28,686 $ 33,205 |
Revolving Credit Facility and N
Revolving Credit Facility and Notes Payable to Affiliates | 12 Months Ended |
Jan. 28, 2017 | |
Debt Disclosure [Abstract] | |
REVOLVING CREDIT FACILITY AND NOTES PAYABLE TO AFFILIATES | REVOLVING CREDIT FACILITY AND NOTES PAYABLE TO AFFILIATES The Company’s revolving credit facility and notes payable to affiliates consist of the following (in thousands): January 28, 2017 January 30, 2016 Revolving credit facility interest payable monthly, secured by a pledge of substantially all of the Company's assets $ — $ 13,078 Subordinated notes payable-affiliates 125,366 125,366 125,366 138,444 Less current portion — — Total long-term debt $ 125,366 $ 138,444 The Company has a revolving Senior Credit Facility with a syndicate of banks that is used for the Company’s general corporate purposes and those of its subsidiaries, including working capital and capital expenditures. The maximum borrowing amount under the Senior Credit Facility is $175 million and the termination date is April 2019. Under this facility, which does not require amortization of principal, revolving loans may be drawn, repaid and reborrowed up to the amount available under a borrowing base calculated with reference to specified percentages of the Company’s eligible credit card and trade receivables and inventory, which availability may be reduced by the lender in its reasonable discretion. The Company must maintain availability under the facility of at least the greater of 10% of the aggregate amount that may be advanced against eligible credit card receivables, trade receivables and inventory or $10 million . As of January 28, 2017 , there was no borrowing outstanding and the Company had a borrowing availability of $94.7 million , which includes $25 million for letters of credit. Interest under the Senior Credit Facility is at variable rates plus specified margins that are determined based upon the Company’s excess availability from time to time. The Company is also required to pay monthly commitment fees based on the unused amount of the Senior Credit Facility and a monthly fee with respect to outstanding letters of credit. All obligations of the Company related to the Senior Credit Facility are secured by first priority perfected security interests in all personal and real property owned by the Company, including without limitation 100% (or, in the case of excluded foreign subsidiaries, 66% ) of the outstanding equity interests in the subsidiaries. The Company is subject to customary limitations on its ability to, among other things, pay dividends and make distributions, make investments and enter into joint ventures, and dispose of assets. The Company was in compliance with all financial and operating covenants as of January 28, 2017 . In addition, the Company has outstanding unsecured debt obligations as follows: (i) a promissory note in the principal amount of $35 million , (the “QKD Note”) held by Quality King, which provides for payment of principal in quarterly installments between July 31, 2019 and October 31, 2022, with a final installment on October 31, 2022 of the remaining balance, and payment of interest in quarterly installments commencing on January 31, 2011 at the then current senior debt rate, as defined in the Senior Credit Facility, plus 1% per annum; (ii) promissory notes in the aggregate principal amount of approximately $85.4 million held by six estate trusts established by Glenn, Stephen and Arlene Nussdorf (the “Nussdorf Trust Notes”), which provide for payment of the principal in full on July 31, 2019 and payments of interest in quarterly installments commencing on July 31, 2012 at the then current senior debt rate plus 2% per annum; and (iii) a promissory note in the principal amount of $5 million held by Glenn and Stephen Nussdorf (the “2004 Note”), which provided for payment in January 2009 and is currently in default because of the restrictions on payment described below, resulting in an increase of 2% in the nominal interest rate, which is the prime rate plus 1% . These notes are subordinated to the Senior Credit Facility. No principal may be paid on any of them until three months after the Senior Credit Facility terminates and is paid in full, and payment of interest is subject to satisfaction of certain conditions, including the Company’s maintaining excess availability under the Senior Credit Facility of the greater of $17.5 million or 17.5% of the borrowing base certificate after giving effect to the payment, and a fixed charge coverage ratio, as defined in the credit agreement, of 1.1 :1.0. Based on the terms of the April 2014 amendment to the Senior Credit Facility discussed above, these notes were amended and no principal payments may be made on any of these notes until three months after the Senior Credit Facility's new termination date of April 25, 2019. Interest expense on these notes was approximately $6.0 million and $5.3 million for fiscal 2016 and 2015 , respectively, and is included in interest expense on the accompanying consolidated statements of operations. No payments of principal or interest have been made on the QKD Note or the Nussdorf Trust Notes. On the 2004 Note, no payments of principal have been made and no interest payments have been made since October 2008. Accrued interest payable due at January 28, 2017 and January 30, 2016 on the Nussdorf Trust Notes, the QKD Note, and the 2004 Note was approximately $50.8 million and $44.8 million , respectively, and is included in other long-term liabilities on the accompanying consolidated balance sheets as of January 28, 2017 and January 30, 2016 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 28, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The income tax (benefit) provision is comprised of the following amounts (in thousands): Fiscal Year Ended Fiscal Year Ended Current: Federal $ — $ 22 State and local 329 429 329 451 Deferred: Federal (7,782 ) (3,620 ) State and local (1,112 ) (531 ) Foreign (290 ) 697 (9,184 ) (3,454 ) Income tax benefit (8,856 ) (3,003 ) Valuation allowance adjustment 8,656 3,454 Income tax (benefit) provision $ (199 ) $ 451 The income tax provision (benefit) differs from the amount obtained by applying the statutory Federal income tax rate to pretax income as follows (in thousands): Fiscal Year Ended Fiscal Year Ended (Benefit) at Federal statutory rates $ (8,343 ) $ (3,927 ) Permanent adjustments 39 91 State tax, net of Federal benefit (828 ) (203 ) Change in valuation allowance 8,656 3,454 Prior year adjustments (29 ) 1,033 Foreign rate differential 306 3 Other — — Income tax (benefit) provision $ (199 ) $ 451 Net deferred tax liabilities, which are included in other long-term liabilities on the accompanying consolidated balance sheets as of January 28, 2017 and January 30, 2016 , reflect the tax effect of the following differences between financial statement carrying amounts and tax bases of assets and liabilities as follows (in thousands): January 28, 2017 January 30, 2016 Assets: Net operating loss and tax credit carryforwards $ 18,546 $ 11,625 Foreign net operating loss carryforwards 2,722 2,432 Inventories 3,657 6,293 Property and equipment 7,860 5,972 Accounts receivable allowances 988 260 Goodwill and intangibles 174 102 Accrued interest 12,319 10,381 Deferred rent 3,387 3,489 Accrued expenses 4,398 4,139 Share-based compensation 2,827 3,021 Other 1,939 2,816 Total deferred tax assets 58,817 50,530 Valuation allowance (57,859 ) (49,203 ) Net deferred tax assets 958 1,327 Liabilities: Tradename (2,872 ) (3,400 ) Intangibles (958 ) (1,327 ) Total deferred tax liabilities, net $ (2,872 ) $ (3,400 ) Management evaluates the Company’s deferred income tax assets and liabilities to determine whether or not a valuation allowance is necessary. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Realization of future tax benefits related to the deferred tax assets is dependent on many factors, including the Company’s ability to generate future taxable income during those periods in which temporary differences become deductible and/or credits can be utilized. Based on the difficult retail and wholesale environment and the uncertainty as to when conditions will improve enough to enable the Company to utilize its deferred tax assets, the Company recorded a full valuation allowance against its deferred tax assets. The lack of practical tax-planning strategies available in the short-term and the lack of other objectively verifiable positive evidence supported the conclusion that a full valuation allowance against the Company’s Federal and state net deferred tax assets was necessary. In fiscal 2016 and 2015 , the valuation allowance increased by approximately $8.7 million and $3.5 million , respectively. For U.S. Federal and State income tax purposes, the Company generated a taxable loss which will be carried forward and available to reduce future taxable income but overall, the Company’s deferred tax assets net with deferred tax liabilities, and before being reduced by the valuation allowance, increased. As of January 28, 2017 and January 30, 2016 , the Company had a deferred tax liability of approximately $2.9 million and $3.4 million , respectively, related to a tradename. Due to the uncertainty of when this deferred tax liability will be recognized, the Company was not able to offset its total deferred tax assets with this deferred tax liability. The deferred tax liability is included in other long-term liabilities on the accompanying consolidated balance sheets as of January 28, 2017 and January 30, 2016 . Based on available evidence, management concluded that a valuation allowance should be maintained against the Company’s deferred tax assets as of January 28, 2017 and January 30, 2016 . If, in the future, the Company realizes taxable income on a sustained basis of the appropriate character and within the net operating loss carryforward period, the Company would reverse some or all of this valuation allowance, resulting in an income tax benefit. Further, changes in existing tax laws could also affect valuation allowance needs in the future. As of January 28, 2017 and January 30, 2016 , the Company’s United States and Puerto Rico net operating loss carryforwards, which approximate $47.5 million and $29.6 million , respectively, begin to expire in fiscal years 2030 and 2018, respectively. The Company has approximately $78.3 million of net operating loss carryforwards in various states expiring from 2017 through 2036 and may be subject to certain annual limitations. GAAP prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in an income tax return. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. GAAP also provides guidance on derecognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. As of January 28, 2017 and January 30, 2016 , there was a liability of $1.4 million and $1.2 million , respectively, recorded for income tax associated with unrecognized tax benefits. The Company accrues interest related to unrecognized tax benefits as well as any related penalties in income tax expense, which is consistent with the recognition of these items in prior reporting periods. Accrued interest and penalties were $1.0 million and $0.9 million as of January 28, 2017 and January 30, 2016 , respectively. The balance of unrecognized tax benefits, the amount of related interest and penalties we have provided and what we believe to be the range of reasonably possible changes in the next twelve months , were (in thousands): Fiscal Year Ended Fiscal Year Ended Unrecognized tax benefits $ 1,397 $ 1,219 Portion if recognized would reduce tax expense and effective rate 1,397 1,219 Accrued interest on unrecognized tax benefits 786 717 Accrued penalties on unrecognized tax benefits 220 220 A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): Fiscal Year Ended Fiscal Year Ended Balance at beginning of year $ 1,219 $ 1,079 Additions for tax positions of the current year 132 162 Additions for tax positions of prior years 46 82 Reductions for tax positions of prior years — (104 ) Balance at end of year $ 1,397 $ 1,219 The Company does not expect material adjustments to the total amount of unrecognized tax benefits within the next 12 months, but the outcome of tax matters is uncertain and unforeseen results can occur. The Company conducts business throughout the United States, Puerto Rico, Brazil and the U.S. Virgin Islands and, as a result, files income tax returns in the United States Federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities. With few exceptions, the Company is no longer subject to U.S. Federal, state, local or Puerto Rico income tax examinations for fiscal years prior to 2008. State and foreign income tax returns are generally subject to examination for a period of three to five years after filing of the respective return. The state impact of any Federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. The Company is currently not under examination. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 28, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company adopted the accounting guidance regarding fair value and disclosures, as it applies to financial and non-financial assets and liabilities. The guidance defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The new guidance does not require any new fair value measurements; rather, it applies to other accounting pronouncements that require or permit fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows: Level 1: Observable inputs such as quoted prices in active markets (the fair value hierarchy gives the highest priority to Level 1 inputs); Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data and require the reporting entity to develop its own assumptions As of January 28, 2017 , the Company had no material financial assets or liabilities measured on a recurring basis at fair value. The Company measures certain assets at fair value on a non-recurring basis, specifically long-lived assets evaluated for impairment. We estimated the fair value of our long-lived assets using company-specific assumptions which would fall within Level 3 of the fair value hierarchy. The following tables present the non-financial assets the Company measured at fair value on a non-recurring basis, based on the fair value hierarchy as of January 28, 2017 and January 30, 2016 : Fair Value Measured and Recorded at Reported Date Using (in thousands) Net Carrying Value as of January 28, 2017 Level 1 Level 2 Level 3 Total Impairment Losses - Year Ended January 28, 2017 Property and Equipment $ — $ — $ — $ — $ 5,625 Intangible assets — — — — 1,320 Fair Value Measured and Recorded at Reported Date Using Net Carrying Value as of January 30, 2016 Level 1 Level 2 Level 3 Total Impairment Losses - Year Ended January 30, 2016 Property and Equipment (in thousands) $ — $ — $ — $ — $ 1,032 In fiscal 2016 and 2015 , the Company recorded noncash impairment charges of approximately $5.6 million and $1.0 million , respectively, to reduce the net carrying value of certain retail store assets to their estimated fair value of $0 , which was based on discounted estimated future cash flows. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jan. 28, 2017 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | SHAREHOLDERS’ EQUITY PREFERRED STOCK The Company’s Articles of Incorporation authorize the issuance of up to 1,000,000 shares of preferred stock. The preferred stock may be issued from time to time at the discretion of the Board of Directors without shareholders’ approval. The Board of Directors is authorized to issue these shares in different series and, with respect to each series, to determine the dividend rate, and provisions regarding redemption, conversion, liquidation preference and other rights and privileges. As of January 28, 2017 , no preferred stock had been issued. TREASURY STOCK As of January 28, 2017 , the Company had repurchased 898,249 shares of common stock for approximately $8.6 million , all of which are held as treasury shares. There were no repurchases during fiscal 2016 or fiscal 2015 . WARRANTS In connection with the Parlux acquisition, the Company issued warrants for an aggregate of 4,805,304 shares of our common stock at an exercise price of $8.00 per share. See further discussion at Note 6 of these consolidated financial statements. In connection with the Company's merger with a predecessor company on August 11, 2008, the Company issued warrants to purchase an additional 1,500,000 shares of our common stock with an exercise price per share of $23.94 . These warrants became exercisable effective August 11, 2011 and will be exercisable until August 11, 2018. STOCK OPTION PLANS The 2010 Equity Incentive Plan (the “2010 Plan”) provides for equity-based awards to the Company’s employees, directors and consultants. Under the 2010 Plan, the Company initially reserved 1,000,000 shares of common stock for issuance. This number automatically increases on the first trading day of each fiscal year beginning with fiscal 2011, by an amount equal to 1.5% of the shares of common stock outstanding as of the last trading day of the immediately preceding fiscal year; accordingly, 2,194,305 shares of common stock were reserved for issuance as of January 28, 2017 . The Company previously had two stock option plans which expired on October 31, 2010. No further awards will be granted under these plans, although all options previously granted and outstanding will remain outstanding until they are either exercised or forfeited. As of January 28, 2017 , 1,030,053 stock options have been granted pursuant to the 2010 Plan. The following is a summary of the stock option activity during the fiscal year ended January 28, 2017 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) Outstanding as of January 30, 2016 975,916 $ 8.01 Granted 410,000 2.30 Exercised — — Forfeited (201,916 ) 7.83 Outstanding as of January 28, 2017 1,184,000 $ 6.07 6.9 $ — Vested and expected to vest as of January 28, 2017 766,500 $ 8.09 6.9 $ — Exercisable as of January 28, 2017 766,500 $ 8.09 6.9 $ — The following is a summary of stock warrants activity during the fiscal year ended January 28, 2017 : Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) Outstanding as of January 30, 2016 6,299,971 $ 11.80 Granted — — Exercised — — Forfeited — — Outstanding as of January 28, 2017 6,299,971 $ 11.80 1.4 $ — Vested and expected to vest as of January 28, 2017 — $ 11.80 1.4 $ — Exercisable as of January 28, 2017 — $ 11.80 1.4 $ — Share-based compensation expense was $0.1 million and $0.3 million during fiscal 2016 and 2015 , respectively. The fair value for stock options issued during the fiscal years ended January 28, 2017 and January 30, 2016 was estimated at the date of grant, using the Black-Scholes option pricing model with the following weighted average assumptions: Fiscal Year Ended Fiscal Year Ended Expected life (years) 5 5 Expected stock price volatility 85.0% - 86.0% 86.0% - 88.9% Risk-free interest rates 1.1% - 1.3% 1.6% - 1.7% Expected dividend yield 0% 0% The expected life of the options represents the estimated period of time until exercise and is based on historical experience of similar awards, giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. The expected stock price volatility is estimated using the historical volatility of the Company’s stock. The risk-free interest rate is based on the implied yield available on U.S. Treasury zero coupon issues with a term equal to the option’s expected life. The Company has not paid dividends in the past and does not intend to in the foreseeable future. The weighted average estimated fair values of options granted during fiscal years 2016 and 2015 were $1.54 and $2.96 per share, respectively. As of January 28, 2017 , there was $0.6 million of unrecognized compensation expense related to non-vested outstanding stock options. These costs are expected to be recognized over a weighted-average period of 4.5 years . There were no exercises of options during fiscal 2016 . The aggregate intrinsic value of options exercised during fiscal 2015 was $42,000 . Cash received from option exercises during fiscal 2015 was $57,000 . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 28, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The Company has a 401(k) Savings and Investment Plan (the “Plan”) for its various subsidiaries. Pursuant to the Plan, the participants may make contributions to the Plan in varying amounts from 1% to 100% of total compensation, or the maximum limits allowable under the Internal Revenue Code, whichever is less. The Company, at its discretion, may match such contributions in varying amounts, as specified by the Plan, and the Company’s matching contributions vest over a one to four year period. The Company did not match contributions to the Plan during fiscal 2016 and 2015 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 28, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES MEDICAL INSURANCE The Company self-insures employees for employee medical benefits under the Company’s group health plan. As of January 28, 2017 , the Company maintains stop loss coverage for individual medical claims in excess of $125,000 and for annual Company medical claims which exceed approximately $3.8 million in the aggregate. While the ultimate amount of claims incurred are dependent on future developments, in management’s opinion, recorded accruals are adequate to cover the future payment of claims incurred as of January 28, 2017 . However, it is possible that recorded accruals may not be adequate to cover the future payment of claims. Adjustments, if any, to estimates recorded resulting from ultimate claim payments will be reflected in operations in the periods in which such adjustments are determined. The self-insurance accrual at January 28, 2017 and January 30, 2016 was approximately $0.3 million and $0.6 million , respectively, which is included in accrued expenses and other liabilities in the accompanying consolidated balance sheets . LEASES AND RETAIL STORE RENT Total rent expense for warehouse space and equipment charged to operations for both fiscal 2016 and fiscal 2015 was and $4.6 million . This includes payments of warehouse rent to Quality King. The Company subleases office and warehouse facility from Quality King in Bellport, New York at a rate which is currently $2.9 million per year with an annual escalation of 3% . This sublease expires September 2027. The Company also leases a warehouse facility in Keasby, New Jersey and administrative office space in Ft. Lauderdale, Florida. The lease in Keasby expires in September 2020. The Ft. Lauderdale lease expires in January 2022. The Company also leases administrative office space in New York City. This lease expires in February 2021. The Company leases space for its retail stores. The lease terms vary from month to month leases to ten year leases, in some cases with options to renew for longer periods. Various leases contain clauses which adjust the base rental rate by the prevailing Consumer Price Index, as well as requiring additional contingent rent based on a percentage of gross sales in excess of a specified amount. Retail store rent expense in fiscal 2016 and 2015 were as follows (in thousands): Fiscal Year Ended Fiscal Year Ended Minimum rentals $ 30,051 $ 31,263 Contingent rentals 523 1,018 Total $ 30,574 $ 32,281 Aggregate future minimum rental payments under the above operating leases at January 28, 2017 are payable as follows (in thousands): Fiscal Year 2017 $ 28,231 2018 22,458 2019 16,733 2020 12,622 2021 10,639 Thereafter 41,214 $ 131,897 The Company’s capitalized leases are for a building in Sunrise, Florida, and computer hardware and software. The lease for the Florida building expires December 2017 with monthly rent of approximately $104,000 during the remaining term of the lease. The following is a schedule of future minimum lease payments under capital leases together with the present value of the net minimum lease payments at January 28, 2017 (in thousands): Fiscal Year 2017 $ 1,321 Total future minimum lease payments (1) 1,321 Less: Amount representing interest (84 ) Present value of minimum lease payments 1,237 Less: Current portion (1,237 ) $ — (1) Minimum payments have not been reduced by minimum sublease rentals of approximately $0.6 million due in the future under noncancelable subleases. ADVERTISING AND ROYALTY OBLIGATIONS The Company is party to license agreements with unaffiliated licensors. Obligations under license agreements relate to royalty payments and required advertising and promotional spending levels for the Company's products bearing the licensed trademark. Royalty payments are typically made based on contractually defined net sales. However, certain licenses require minimum guaranteed royalty payments regardless of sales levels. Minimum guaranteed royalty payments and required minimums for advertising and promotional spending have been included in the table below. Actual royalty payments and advertising and promotional spending could be higher. Furthermore, early termination of any of these license agreements could result in potential cash outflows that have not been reflected below. Royalty expense was $19.1 million and $18.1 million for fiscal 2016 and fiscal 2015 , respectively and is included in selling, general and administrative expenses on the accompanying consolidated statements of operations. The aggregate future minimum payments under these licensing agreements at January 28, 2017 are payable as follows (in thousands): Fiscal Year Royalty Payments Advertising Obligations Total 2017 $ 16,042 $ 34,832 $ 50,874 2018 10,680 24,530 35,210 2019 3,031 7,907 10,938 2020 2,310 8,007 10,317 2021 593 4,544 5,137 Thereafter 19 150 169 $ 32,675 $ 79,970 $ 112,645 LITIGATION On February 21, 2017, Kiss Nail Products, Inc. (plaintiff) sued Parlux and Roraj Trade, LLC (the licensor of Rihanna’s intellectual property) in the U.S. District Court for the Southern District of New York alleging both federal and state law trademark infringement and unfair competition arising out of Parlux’s sale and distribution of the “Kiss by Rihanna” fragrance. Plaintiff alleges that such sale and distribution infringes its “Kiss” mark on nail care and other beauty products. Plaintiff seeks, inter alia, to enjoin Defendants’ distribution and sales of the alleged offending products and seeks unspecified money damages as well as treble damages, attorneys’ fees, punitive damages and interest. Pursuant to an agreement between Parlux and Roraj, Parlux has agreed to defend and indemnify Roraj in this case. On April 19, 2017, the Defendants filed an Answer in the nature of a general denial along with Counterclaims seeking a declaratory judgment that Plaintiff has abandoned the mark with regard to perfume, fragrance, cologne and related fragrance products. Defendants are also seeking a declaration that they have not infringed any of Plaintiff’s marks. It is anticipated that the Court will set a schedule which calls for the conclusion of fact and expert discovery on or about December 20, 2017, with dispositive motion practice likely to follow. On January 25, 2016, the Company and Parlux filed a lawsuit against S. Carter Enterprises, LLC, and Shawn C. Carter, who is the beneficial owner of 10% of the Company’s common stock, in the Supreme Court of the State of New York, County of New York. In general, the lawsuit alleges that the defendants have breached the license described in Note 6 to the consolidated financial statements included in Item 8 of this Form 10-K and related agreements by not acting timely or in good-faith in approving products and launches under the license and not supporting the brand via personal appearances as required by the license. The lawsuit seeks a determination that such breaches undermine the essence of the license thereby warranting rescission of the license, return of the consideration paid on account of the license and related agreements, monetary damages, and other relief. On May 6, 2016, the defendants filed an answer in the nature of a general denial, with a counterclaim for, inter alia, amounts allegedly due to them under the license agreements in the amount of approximately $2.7 million . The Company has filed a reply to that counterclaim in the nature of a general denial. The Court has set a schedule which calls for the conclusion of fact and expert discovery by January 2018, with dispositive motion practice to follow. The parties have commenced discovery, which is ongoing. The Company intends to vigorously pursue its claims and to defend the counterclaim. In August 2015, the Company was named as a defendant in a class action filed in the Superior Court for the State of California, County of Ventura. The plaintiff, a former employee of Perfumania, sought to represent all current and former sales associates at California Perfumania stores. The complaint alleged various violations of California law related to wages, meal periods and wage statements, among other things. In October 2016, the parties agreed in principle on a settlement which has been submitted to the Court. The settlement proceeds will not be deposited with the settlement administrator until the court provides its final approval sometime in 2017. The Company accrued the estimated settlement of approximately $0.5 million during fiscal 2016 , which is included in selling, general and administrative expenses on the accompanying consolidated statements of operations. In November 2015, the Company was named as a defendant in a putative class action in the U.S. District Court for the Southern District of Alabama. The complaint, and thereafter an amended complaint, alleged that the Company violated the Telephone Consumer Protection Act ("TCPA") by sending unsolicited facsimiles which advertised goods and/or services offered by the Company. The plaintiff sought to represent a nationwide class of all recipients of such unsolicited faxes for the period November 3, 2011 to the present. Plaintiff sought statutory damages of at least $500 per violative fax, plus other non-monetary relief. The parties agreed to mediate the matter which resulted in a settlement in principle. A formal settlement agreement, on a class wide basis, was entered into in late November 2016. Defendant will obtain a release, on a class wide basis, from all members of the settlement class who do not opt out, back to January 2011. The settlement has been preliminarily approved by the Court and notice has been disseminated to potential class members, who had the opportunity to opt out of the class or to object to the settlement on or before March 31, 2017. No objections have been received, but there have been four opt-outs and various claims. The settlement will be presented to the Court for final approval at a hearing scheduled for May 30, 2017. Assuming final approval, claims will be submitted, reviewed, and paid as appropriate. It is expected that this process will be concluded during calendar 2017. The Company accrued the estimated settlement of approximately $0.5 million during fiscal 2016 , which is included in selling, general and administrative expenses on the accompanying consolidated statement of operations. Other than as noted above, the Company is involved in legal proceedings in the ordinary course of business. Management cannot presently predict the outcome of these matters, although management believes that the ultimate resolution of these matters will not have a materially adverse effect on the Company's financial position, operations or cash flows. |
Segment Information
Segment Information | 12 Months Ended |
Jan. 28, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company operates in two industry segments, wholesale distribution and specialty retail sales of designer fragrance and related products. Management reviews operating information by segment and on a consolidated basis each month. Retail sales include sales at Perfumania retail stores, the SOW consignment business and the Company’s internet site, Perfumania.com. Transactions between QFG, Parlux and Five Star, and unrelated customers are included in our wholesale segment information. The accounting policies of the segments are the same as those described in Note 2. The Company’s chief operating decision maker, who is its Chief Executive Officer, assesses segment performance by reference to gross profit. Each of the segments has its own assets, liabilities, revenues and cost of goods sold. While each segment has certain unallocated operating expenses, these expenses are not reviewed by the chief operating decision maker on a segment basis, but rather on a consolidated basis. Financial information for these segments is summarized in the following table: Fiscal Year Ended Fiscal Year Ended (in thousands) Net sales: Retail $ 237,297 $ 293,395 Wholesale 231,568 248,569 $ 468,865 $ 541,964 Gross profit: Retail $ 116,791 $ 147,468 Wholesale 104,541 110,156 $ 221,332 $ 257,624 January 28, 2017 January 30, 2016 Total assets: Wholesale $ 678,555 $ 636,924 Retail 364,117 372,651 1,042,672 1,009,575 Eliminations (a) (732,372 ) (658,529 ) Consolidated assets $ 310,300 $ 351,046 (a) Adjustment to eliminate intercompany receivables and investment in subsidiaries Sales to wholesale customers in foreign countries during fiscal 2016 and 2015 were $35.1 million and $34.5 million , respectively. |
Significant Accounting Polici21
Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 28, 2017 | |
Accounting Policies [Abstract] | |
Fiscal Year End | FISCAL YEAR END The Company’s fiscal year ends on the Saturday closest to January 31 to enable the Company’s operations to be reported in a manner consistent with general retail reporting practices and the financial reporting needs of the Company. In the accompanying notes, fiscal 2016 refers to the fiscal year beginning January 31, 2016 and ending January 28, 2017 and fiscal 2015 refers to the fiscal year beginning February 1, 2015 and ending January 30, 2016 . Fiscal 2016 and fiscal 2015 both contain 52 weeks |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Management Estimates | MANAGEMENT ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates made by management in the accompanying consolidated financial statements relate to the valuation of accounts receivable and inventory balances, accruals for sales returns and allowances, long-lived asset impairments and deferred tax assets. Actual results could differ from those estimates. |
Cash and Cash Equivalents | CASH AND CASH EQUIVALENTS All highly liquid investments with original maturities of three months or less are classified as cash and cash equivalents. The fair value of cash and cash equivalents approximates the amounts shown on the consolidated financial statements. Cash and cash equivalents consist of unrestricted cash in accounts maintained with major financial institutions. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company reduces credit risk by placing its cash and cash equivalents with major financial institutions with high credit ratings. At times, such amounts may exceed federally insured limits. |
Accounts Receivable | ACCOUNTS RECEIVABLE The Company’s accounts receivable consist primarily of trade receivables due from wholesale sales. Also included are credit card receivables and receivables due from consignment sales relating to the Company’s retail business segment. Generally, there are three to four days of retail sales transactions outstanding with third-party credit card vendors and approximately one to two weeks of consignment retail sales at any point in time. An allowance for doubtful accounts is determined through analysis of the aging of accounts receivable at the date of the consolidated financial statements, assessments of collectability based on an evaluation of historical and anticipated trends, the financial condition of the Company’s customers and an evaluation of the impact of economic conditions. |
Inventories | INVENTORIES Inventories, principally consisting of finished goods, are stated at the lower of cost or market with cost being determined on a weighted average basis. The cost of inventory includes product cost and certain freight charges. Write-offs of potentially slow moving or damaged inventory are recorded based on management’s analysis of inventory levels, future sales forecasts and through specific identification of obsolete or damaged merchandise. |
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment is carried at cost, less accumulated depreciation and amortization. Depreciation for property and equipment, which includes assets under capital leases, is calculated using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the term of the lease including one stated renewal period that is reasonably assured, or the estimated useful lives of the improvements, generally ten years , with the exception of the improvements on the corporate office and warehouse in Bellport, New York which has a lease term of 20 years . Costs of major additions and improvements are capitalized and expenditures for maintenance and repairs which do not extend the useful life of the asset are expensed when incurred. Gains or losses arising from sales or retirements are reflected in operations. See Note 5. |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill is calculated as the excess of the cost of purchased businesses over the fair value of their underlying net assets. Other intangible assets principally consist of license agreements, tradenames and customer relationships. Goodwill is allocated and evaluated at the reporting unit level, which is at the Company's operating segment level. All goodwill has been allocated to the Company's wholesale segment. Goodwill and other intangible assets with indefinite lives are not amortized, but rather are evaluated for impairment annually during the Company's fourth quarter or whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Impairment testing for goodwill is performed in two steps: (i) the determination of possible impairment, based upon the fair value of a reporting unit as compared to its carrying value; and (ii) if there is a possible impairment indicated, this step measures the amount of impairment loss, if any, by comparing the implied fair value of goodwill with the carrying amount of that goodwill. The fair values of indefinite-lived intangible assets are estimated and compared to their respective carrying values. Trademarks, including tradenames and owned licenses having finite lives, are recorded at cost and are amortized over their respective lives to their estimated residual values and are also reviewed for impairment when changes in circumstances indicate the assets’ value may be impaired. Impairment testing is based on a review of forecasted operating cash flows and the profitability of the related brand. |
Gift Cards | GIFT CARDS Upon the purchase of a gift card by a retail customer, a liability is established for the cash value of the gift card. The liability is included in accrued expenses and other liabilities. The liability is relieved and revenue is recognized at the time of the redemption of the gift card. Over time, some portion of gift cards issued is not redeemed. If this amount is determined to be material to the Company’s consolidated financial statements, it will be recorded as a reduction of selling, general and administrative expenses, when it can be determined that the likelihood of the gift card being redeemed is remote and there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions (often referred to as gift card breakage). No gift card breakage has been recorded in the consolidated statements of operations for any year presented in these consolidated financial statements. Gift cards issued by the Company do not have expiration dates. |
Loyalty Rewards Program | LOYALTY REWARDS PROGRAM Perfumania and Perfumania.com offer a customer loyalty rewards program which allows members to earn points and other benefits for qualifying purchases. Points earned may be used by members to receive discounts on future purchases at our Perfumania stores or Perfumania.com website. The value of points earned by our loyalty rewards program members is included in accrued liabilities and recorded as a reduction of revenue at the time the points are earned. Revenue is recognized when points are redeemed by the customer. The value of points accrued as of January 28, 2017 and January 30, 2016 was approximately $1.7 million and $0.3 million , respectively. |
Accrued Expenses | ACCRUED EXPENSES Accrued expenses for self-insured employee medical benefits, contracted advertising, sales allowances, professional fees and other outstanding obligations are assessed based on claims experience and statistical trends, open contractual obligations and estimates based on projections and current requirements. If these trends change significantly, then actual results would likely be impacted. |
Revenue Recognition | REVENUE RECOGNITION Revenue from wholesale transactions is recognized when title passes, which occurs either upon shipment of products or delivery to the customer. Revenue from retail sales is recorded, net of discounts, at the point of sale for Perfumania stores, and for consignment sales, when sale to the ultimate customer occurs. Revenue from sales where we ship the merchandise to the customer from a store or distribution center and from Internet sales is recognized at the time products are delivered to customers. Shipping and handling revenue billed to customers is included as a component of net sales. Revenues are presented net of any taxes collected from customers and remitted to government agencies. Revenue from gift cards is recognized at the time of redemption. Returns of store and Internet sales are allowed within 30 days of purchase. |
Sales and Allowances | SALES AND ALLOWANCES Allowances for sales returns are estimated and recorded as a reduction of sales based on our historical and projected return patterns and considering current external factors and market conditions. Allowances provided for advertising, marketing and tradeshows are recorded as selling expenses since they are costs for services received from the customer which are separable from the customer’s purchase of the Company’s products. Accruals and allowances are estimated based on available information including third-party and historical data. |
Cost of Goods Sold | COST OF GOODS SOLD Cost of goods sold include the cost of merchandise sold, inventory valuation writedowns, inventory shortages, damages and freight charges. |
Selling, General and Administrative Expenses | SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and administrative expenses include payroll and related benefits for the Company's store operations, field management, distribution center, purchasing and other corporate office and administrative personnel; rent, common area maintenance, real estate taxes and utilities for the Company's stores, distribution centers and corporate office; certain freight charges, advertising, consignment fees, sales promotion, royalties, insurance, supplies, professional fees and other administrative expenses. |
Income Taxes | INCOME TAXES Deferred tax assets and liabilities are recognized for the differences between the financial reporting carrying values and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is recognized to reduce net deferred tax assets to amounts that management believes are more likely than not expected to be realized. Significant judgment is required in determining the provision for income taxes. Changes in estimates may create volatility in the Company’s effective tax rate in future periods for various reasons including, but not limited to: changes in tax laws/rates, forecasted amounts and mix of pre-tax income/loss, settlements with various tax authorities, the expiration of the statute of limitations on some tax positions and obtaining new information about particular tax positions that may cause management to change its estimates. In the ordinary course of business, the ultimate tax outcome is uncertain for many transactions. It is the Company’s policy to recognize, at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority, the impact of an uncertain income tax position on its income tax return. The tax provisions are analyzed at least quarterly and adjustments are made as events occur that warrant adjustments to those provisions. The Company records interest expense and penalties payable to relevant tax authorities as income tax expense. GAAP prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in an income tax return. The Company may recognize the tax benefit from an uncertain tax position only if it is more-likely-than-not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. See further discussion at Note 9. |
Basic and Diluted Net Income (Loss) per Common Share | BASIC AND DILUTED NET LOSS PER COMMON SHARE Basic net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per common share includes, in periods in which they are dilutive, the dilutive effect of those common stock equivalents where the average market price of the common shares exceeds the exercise prices for the respective years. Basic and diluted net loss per common share are computed as follows: Fiscal Year Ended Fiscal Year Ended ($ in thousands, except share and per share amounts) Net loss - basic and diluted $(23,639) $(11,671) Denominator: Weighted average number of common shares for basic and diluted net loss per share 15,493,763 15,486,957 Basic and diluted loss per common share $(1.53) $(0.75) In fiscal 2016 and 2015 , 7,483,971 and 7,275,887 potential shares of common stock, respectively, relating to stock option awards and warrants were excluded from the diluted loss per share calculation, as the effect of including these potential shares was antidilutive due to the net loss reported in each year. |
Accounting for the Impairment of Long-lived Assets | ACCOUNTING FOR THE IMPAIRMENT OF LONG-LIVED ASSETS The carrying value of long-lived assets is evaluated whenever events or changes in circumstances indicate that the carrying values of such assets may be impaired. An evaluation of recoverability is performed by comparing the carrying values of the assets to projected undiscounted future cash flows in addition to other quantitative and qualitative analysis, including management’s strategic plans and market trends. Upon indication that the carrying values of such assets may not be recoverable, the Company recognizes an impairment loss. The impairment loss is determined based on the difference between the net book value and the fair value of the assets. The estimated fair value is based on anticipated discounted future cash flows. Any impairment is charged to operations in the period in which it is identified. Property and equipment assets are grouped at the lowest level for which there are identifiable cash flows when assessing impairment. Cash flows for retail assets are identified at the individual store level. See Notes 4 and 5 for a discussion of impairment charges for intangible assets and long-lived assets recorded in fiscal 2016 and 2015 . |
Share Based Compensation | SHARE-BASED COMPENSATION Share-based compensation expense is recognized on a straight-line basis over the requisite service period. The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model. See further discussion at Note 11. |
Pre-Opening Expenses | PRE-OPENING EXPENSES Pre-opening expenses related to new stores are expensed as incurred. |
Shipping and Handling Fees and Costs | SHIPPING AND HANDLING FEES AND COSTS The cost related to shipping and handling for wholesale sales is classified as freight out, which is included in selling, general and administrative expenses. Income generated by retail sales from shipping and handling fees is classified as revenues and the costs related to shipping and handling are classified as cost of goods sold. |
Advertising and Promotional Costs | ADVERTISING AND PROMOTIONAL COSTS Advertising and promotional costs for fiscal 2016 and fiscal 2015 were approximately $58.5 million and $70.5 million , respectively, and are charged to expense when incurred. |
Rent Expense | RENT EXPENSE The Company leases retail stores as well as offices and distribution centers under operating leases. Minimum rental expenses are recognized over the term of the lease on a straight-line basis. For purposes of recognizing minimum rental expenses, the Company uses the date when possession of the leased space is taken from the landlord, which includes a construction period of approximately two months prior to store opening. For tenant improvement allowances and rent holidays, the Company records a deferred rent liability in accrued expenses on the consolidated balance sheets and amortizes the deferred rent over the terms of the leases as reductions to rent expense on the consolidated statements of operations. For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial occupancy, the Company records minimum rental expenses on a straight-line basis over the terms of the leases on the consolidated statements of operations. The difference between the rental expense recognized and the amount payable under the lease is included in other long-term liabilities on the accompanying consolidated balance sheets. Certain leases provide for contingent rents, which are primarily determined as a percentage of gross sales in excess of specified levels and are not measurable at inception. The Company records a liability in accrued expenses on the consolidated balance sheets and the corresponding rent expense when specified levels have been achieved. |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The fair values of the Company’s assets and liabilities that qualify as financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, short-term debt, and accrued expenses, are carried at cost, which approximates fair value due to the short-term maturity of these instruments. The reported amounts of long-term obligations approximate fair value, given management’s evaluation of the instruments’ current rates compared to market rates of interest and other factors. |
Concentration of Credit Risk | CONCENTRATIONS OF CREDIT RISK The Company is potentially subject to a concentration of credit risk with respect to its trade receivables, the majority of which are due from retailers and wholesale distributors. Credit risks also relate to the seasonal nature of the business. The Company’s sales are concentrated in November and December for the holiday season. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains allowances to cover potential or anticipated losses for uncollectible accounts. The Company maintains credit insurance on certain receivables, which minimizes the financial impact of uncollectible accounts. |
Acquisition of Parlux (Tables)
Acquisition of Parlux (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Business Combinations [Abstract] | |
Schedule of Estimated Future Amortization Expense | The estimated future amortization expense associated with intangible assets subject to amortization is as follows (in thousands): Fiscal Year Amortization Expense 2017 $ 1,427 2018 877 2019 709 2020 684 2021 682 Thereafter 235 $ 4,614 |
Significant Accounting Polici23
Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Accounting Policies [Abstract] | |
Basic and Diluted Net Income (Loss) per Common Share | Basic and diluted net loss per common share are computed as follows: Fiscal Year Ended Fiscal Year Ended ($ in thousands, except share and per share amounts) Net loss - basic and diluted $(23,639) $(11,671) Denominator: Weighted average number of common shares for basic and diluted net loss per share 15,493,763 15,486,957 Basic and diluted loss per common share $(1.53) $(0.75) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): January 28, 2017 January 30, 2016 Raw materials and work in process $30,699 $29,178 Finished goods 165,955 192,158 $196,654 $221,336 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets | The following table provides information related to goodwill and intangible assets (in thousands). Intangible assets are included in intangible and other assets, net on the accompanying consolidated balance sheets as of January 28, 2017 and January 30, 2016 : January 28, 2017 January 30, 2016 Useful Life (years) Original Cost Accumulated Amortization Net Book Value Original Cost Accumulated Amortization Net Book Value Goodwill N/A $ 38,769 $ — $ 38,769 $ 38,769 $ — $ 38,769 Tradenames 4-20 9,357 8,084 1,273 9,357 7,696 1,661 Customer relationships 10 5,171 2,500 2,671 5,171 1,982 3,189 Favorable leases 7 886 886 — 886 865 21 License agreements 3-5 16,313 15,643 670 16,313 14,640 1,673 Tradename (non-amortizing) N/A 7,180 — 7,180 8,500 — 8,500 $ 77,676 $ 27,113 $ 50,563 $ 78,996 $ 25,183 $ 53,813 |
Schedule of Estimated Future Amortization Expense | The estimated future amortization expense associated with intangible assets subject to amortization is as follows (in thousands): Fiscal Year Amortization Expense 2017 $ 1,427 2018 877 2019 709 2020 684 2021 682 Thereafter 235 $ 4,614 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of (in thousands): January 28, 2017 January 30, 2016 Estimated Useful Lives (In Years) Buildings and improvements $ 17,122 $ 26,325 Lesser of useful life or lease term Furniture and fixtures 31,404 34,599 5-7 Machinery and equipment 8,784 8,432 3-7 57,310 69,356 Less: Accumulated depreciation (40,618 ) (43,464 ) $ 16,692 $ 25,892 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions for Merchandise Purchases | Transactions for merchandise purchases with these related companies during fiscal 2016 and 2015 were as follows: Fiscal Year Ended Fiscal Year Ended Balance Due January 28, 2017 Balance Due January 30, 2016 Lighthouse Companies $ — $ 17 $ 90 $ 134 Jacavi 5,571 17,813 590 29 Quality King 78 68 — (9 ) Cloudbreak — — — 18 Reba 2,294 3,235 337 90 $ 7,943 $ 21,133 $ 1,017 $ 262 |
Accrued Expenses and Other Li28
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other liabilities | Accrued expenses and other liabilities consist of the following (in thousands): January 28, 2017 January 30, 2016 Payroll and related $ 6,564 $ 7,939 Customer allowances 2,766 4,691 Advertising, promotion and royalties 7,250 8,592 Taxes other than income taxes 611 585 Insurance 1,127 1,263 Other 10,368 10,135 $ 28,686 $ 33,205 |
Revolving Credit Facility and29
Revolving Credit Facility and Notes Payable to Affiliates (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Revolving Credit Facility and Notes Payable to Aliates | The Company’s revolving credit facility and notes payable to affiliates consist of the following (in thousands): January 28, 2017 January 30, 2016 Revolving credit facility interest payable monthly, secured by a pledge of substantially all of the Company's assets $ — $ 13,078 Subordinated notes payable-affiliates 125,366 125,366 125,366 138,444 Less current portion — — Total long-term debt $ 125,366 $ 138,444 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision | The income tax (benefit) provision is comprised of the following amounts (in thousands): Fiscal Year Ended Fiscal Year Ended Current: Federal $ — $ 22 State and local 329 429 329 451 Deferred: Federal (7,782 ) (3,620 ) State and local (1,112 ) (531 ) Foreign (290 ) 697 (9,184 ) (3,454 ) Income tax benefit (8,856 ) (3,003 ) Valuation allowance adjustment 8,656 3,454 Income tax (benefit) provision $ (199 ) $ 451 |
Reconciliation of Statutory Federal Income Tax Rate to Pretax Income | The income tax provision (benefit) differs from the amount obtained by applying the statutory Federal income tax rate to pretax income as follows (in thousands): Fiscal Year Ended Fiscal Year Ended (Benefit) at Federal statutory rates $ (8,343 ) $ (3,927 ) Permanent adjustments 39 91 State tax, net of Federal benefit (828 ) (203 ) Change in valuation allowance 8,656 3,454 Prior year adjustments (29 ) 1,033 Foreign rate differential 306 3 Other — — Income tax (benefit) provision $ (199 ) $ 451 |
Schedule of Deferred Tax Liabilities | Net deferred tax liabilities, which are included in other long-term liabilities on the accompanying consolidated balance sheets as of January 28, 2017 and January 30, 2016 , reflect the tax effect of the following differences between financial statement carrying amounts and tax bases of assets and liabilities as follows (in thousands): January 28, 2017 January 30, 2016 Assets: Net operating loss and tax credit carryforwards $ 18,546 $ 11,625 Foreign net operating loss carryforwards 2,722 2,432 Inventories 3,657 6,293 Property and equipment 7,860 5,972 Accounts receivable allowances 988 260 Goodwill and intangibles 174 102 Accrued interest 12,319 10,381 Deferred rent 3,387 3,489 Accrued expenses 4,398 4,139 Share-based compensation 2,827 3,021 Other 1,939 2,816 Total deferred tax assets 58,817 50,530 Valuation allowance (57,859 ) (49,203 ) Net deferred tax assets 958 1,327 Liabilities: Tradename (2,872 ) (3,400 ) Intangibles (958 ) (1,327 ) Total deferred tax liabilities, net $ (2,872 ) $ (3,400 ) |
Schedule of Unrecognized Tax Benefits and Related Interest and Penalties | The balance of unrecognized tax benefits, the amount of related interest and penalties we have provided and what we believe to be the range of reasonably possible changes in the next twelve months , were (in thousands): Fiscal Year Ended Fiscal Year Ended Unrecognized tax benefits $ 1,397 $ 1,219 Portion if recognized would reduce tax expense and effective rate 1,397 1,219 Accrued interest on unrecognized tax benefits 786 717 Accrued penalties on unrecognized tax benefits 220 220 |
Reconciliation of Beginning and Ending Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): Fiscal Year Ended Fiscal Year Ended Balance at beginning of year $ 1,219 $ 1,079 Additions for tax positions of the current year 132 162 Additions for tax positions of prior years 46 82 Reductions for tax positions of prior years — (104 ) Balance at end of year $ 1,397 $ 1,219 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Non-financial Assets Measured at Fair Value on a Non-recurring Basis | The following tables present the non-financial assets the Company measured at fair value on a non-recurring basis, based on the fair value hierarchy as of January 28, 2017 and January 30, 2016 : Fair Value Measured and Recorded at Reported Date Using (in thousands) Net Carrying Value as of January 28, 2017 Level 1 Level 2 Level 3 Total Impairment Losses - Year Ended January 28, 2017 Property and Equipment $ — $ — $ — $ — $ 5,625 Intangible assets — — — — 1,320 Fair Value Measured and Recorded at Reported Date Using Net Carrying Value as of January 30, 2016 Level 1 Level 2 Level 3 Total Impairment Losses - Year Ended January 30, 2016 Property and Equipment (in thousands) $ — $ — $ — $ — $ 1,032 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Equity [Abstract] | |
Summary of Stock Warrant Activity | The following is a summary of stock warrants activity during the fiscal year ended January 28, 2017 : Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) Outstanding as of January 30, 2016 6,299,971 $ 11.80 Granted — — Exercised — — Forfeited — — Outstanding as of January 28, 2017 6,299,971 $ 11.80 1.4 $ — Vested and expected to vest as of January 28, 2017 — $ 11.80 1.4 $ — Exercisable as of January 28, 2017 — $ 11.80 1.4 $ — |
Schedule of Stock Option Weighted Average Valuation Assumptions | The fair value for stock options issued during the fiscal years ended January 28, 2017 and January 30, 2016 was estimated at the date of grant, using the Black-Scholes option pricing model with the following weighted average assumptions: Fiscal Year Ended Fiscal Year Ended Expected life (years) 5 5 Expected stock price volatility 85.0% - 86.0% 86.0% - 88.9% Risk-free interest rates 1.1% - 1.3% 1.6% - 1.7% Expected dividend yield 0% 0% |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Retail Store Rent Expense | Retail store rent expense in fiscal 2016 and 2015 were as follows (in thousands): Fiscal Year Ended Fiscal Year Ended Minimum rentals $ 30,051 $ 31,263 Contingent rentals 523 1,018 Total $ 30,574 $ 32,281 |
Schedule of Aggregate Future Minimum Rental Payments Under Operating Leases | Aggregate future minimum rental payments under the above operating leases at January 28, 2017 are payable as follows (in thousands): Fiscal Year 2017 $ 28,231 2018 22,458 2019 16,733 2020 12,622 2021 10,639 Thereafter 41,214 $ 131,897 |
Schedule of Future Minimum Lease Payments Under Capital Leases | The following is a schedule of future minimum lease payments under capital leases together with the present value of the net minimum lease payments at January 28, 2017 (in thousands): Fiscal Year 2017 $ 1,321 Total future minimum lease payments (1) 1,321 Less: Amount representing interest (84 ) Present value of minimum lease payments 1,237 Less: Current portion (1,237 ) $ — |
Schedule of Aggregate Future Minimum Lease Payments Under Licensing Agreements | The aggregate future minimum payments under these licensing agreements at January 28, 2017 are payable as follows (in thousands): Fiscal Year Royalty Payments Advertising Obligations Total 2017 $ 16,042 $ 34,832 $ 50,874 2018 10,680 24,530 35,210 2019 3,031 7,907 10,938 2020 2,310 8,007 10,317 2021 593 4,544 5,137 Thereafter 19 150 169 $ 32,675 $ 79,970 $ 112,645 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Segment Reporting [Abstract] | |
Financial Information by Segment | Financial information for these segments is summarized in the following table: Fiscal Year Ended Fiscal Year Ended (in thousands) Net sales: Retail $ 237,297 $ 293,395 Wholesale 231,568 248,569 $ 468,865 $ 541,964 Gross profit: Retail $ 116,791 $ 147,468 Wholesale 104,541 110,156 $ 221,332 $ 257,624 January 28, 2017 January 30, 2016 Total assets: Wholesale $ 678,555 $ 636,924 Retail 364,117 372,651 1,042,672 1,009,575 Eliminations (a) (732,372 ) (658,529 ) Consolidated assets $ 310,300 $ 351,046 (a) Adjustment to eliminate intercompany receivables and investment in subsidiaries |
Nature of Business (Details)
Nature of Business (Details) | 12 Months Ended | |
Jan. 28, 2017storesubsidiarycustomer | Jan. 28, 2012customer | |
Subsidiaries [Line Items] | ||
Number of wholly-owned operating subsidiaries | subsidiary | 6 | |
Number of customers who accounted for more than 10% of net sales | customer | 0 | 0 |
Subsidiaries [Member] | ||
Subsidiaries [Line Items] | ||
Retail stores | 287 | |
Subsidiaries [Member] | Kmart | ||
Subsidiaries [Line Items] | ||
Retail stores | 600 | |
Subsidaries, Perfumania | Maximum | ||
Subsidiaries [Line Items] | ||
Percentage below manufacturers' suggest retail prices (up to 75%) | 75.00% | |
Subsidiary of Common Parent [Member] | ||
Subsidiaries [Line Items] | ||
Retail stores | 1,600 |
Acquisition of Parlux - Textual
Acquisition of Parlux - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Business Combination, Separately Recognized Transactions [Line Items] | |||
Net sales | $ 468,865 | $ 541,964 | |
Amortization expense of intangible assets subject to amortization | 1,900 | 4,500 | |
Goodwill | $ 38,769 | $ 38,769 | $ 38,769 |
Acquisition of Parlux - Future
Acquisition of Parlux - Future Amortization of Acquired Intangibles (Details) $ in Thousands | Jan. 28, 2017USD ($) |
Business Acquisition, Purchase Price Allocation [Abstract] | |
2,013 | $ 1,427 |
2,014 | 877 |
2,015 | 709 |
2,016 | 684 |
2,017 | 682 |
Thereafter | 235 |
Total | $ 4,614 |
Significant Accounting Polici38
Significant Accounting Policies - Textual (Details) - USD ($) | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Accounting Policies [Abstract] | |||
Customer Loyalty Program Liability, Current | $ 1,700,000 | $ 300,000 | |
Number of weeks during fiscal period | P52W | P52W | |
Gift card breakage | $ 0 | $ 0 | |
Allowable sales return period | 30 days | ||
Advertising and promotional costs | $ 58,500,000 | $ 70,500,000 | |
Approximate construction period included in determination of minimum rental expenses | 2 months |
Significant Accounting Polici39
Significant Accounting Policies Significant Accounting Policies - Accounts Receivable (Details) | 12 Months Ended | |
Jan. 28, 2017 | Feb. 02, 2013 | |
Credit Card Receivable | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Approximate number of days retail sales are outstanding | 3 years | |
Credit Card Receivable | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Approximate number of days retail sales are outstanding | 4 years | |
Consignment Retail Sales | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Approximate number of days retail sales are outstanding | 7 days | |
Consignment Retail Sales | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Approximate number of days retail sales are outstanding | 14 days |
Significant Accounting Polici40
Significant Accounting Policies Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Jan. 28, 2017renewal_period | |
Property, Plant and Equipment [Line Items] | |
Number of reasonbly assured renewal periods included in the determination of useful lives of leasehold improvements | 1 |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 10 years |
Leasehold Improvements | Corporate Office and Warehouse in Bellport, New York | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 20 years |
Significant Accounting Polici41
Significant Accounting Policies Significant Accounting Policies - Basic and Diluted Net Income(Loss) per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Accounting Policies [Abstract] | |||
Net (loss) income - basic and diluted | $ (23,639) | $ (11,671) | |
Denominator: | |||
Weighted average number of common shares - basic | 15,493,763 | 15,486,957 | |
Weighted average number of common shares - diluted | 15,493,763 | 15,486,957 | |
Basic and diluted (loss) income per common share | $ (1.53) | $ (0.75) | |
Potential shares of common stock excluded from the diluted loss per share calculation | 7,483,971 | 7,275,887 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jan. 28, 2017 | Jan. 30, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials and work in process | $ 30,699 | $ 29,178 |
Finished goods | 165,955 | 192,158 |
Total inventory | $ 196,654 | $ 221,336 |
Goodwill and Intangible Asset43
Goodwill and Intangible Assets - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 38,769 | $ 38,769 | $ 38,769 |
Amortization expense of intangible assets subject to amortization | $ 1,900 | $ 4,500 |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 02, 2013 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Schedule of Goodwill and Intangible Assets [Line Items] | ||||
Goodwill, Net Book Value | $ 38,769 | $ 38,769 | $ 38,769 | |
Finite-lived intangible assets, Original Cost | 77,676 | 78,996 | ||
Finite-lived intangible assets, Accumulated Amortization | 27,113 | 25,183 | ||
Finite-lived intangible assets, Net Book Value | 50,563 | 53,813 | ||
Tradenames | ||||
Schedule of Goodwill and Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, Original Cost | 9,357 | 9,357 | ||
Finite-lived intangible assets, Accumulated Amortization | 8,084 | 7,696 | ||
Finite-lived intangible assets, Net Book Value | 1,273 | 1,661 | ||
Customer relationships | ||||
Schedule of Goodwill and Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, Original Cost | 5,171 | 5,171 | ||
Finite-lived intangible assets, Accumulated Amortization | 2,500 | 1,982 | ||
Finite-lived intangible assets, Net Book Value | 2,671 | 3,189 | ||
Finite-lived intangible assets, Useful Life (years) | 10 years | |||
Favorable leases | ||||
Schedule of Goodwill and Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, Original Cost | 886 | 886 | ||
Finite-lived intangible assets, Accumulated Amortization | 886 | 865 | ||
Finite-lived intangible assets, Net Book Value | 0 | 21 | ||
Finite-lived intangible assets, Useful Life (years) | 7 years | |||
License agreements | ||||
Schedule of Goodwill and Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, Original Cost | 16,313 | 16,313 | ||
Finite-lived intangible assets, Accumulated Amortization | 15,643 | 14,640 | ||
Finite-lived intangible assets, Net Book Value | 670 | 1,673 | ||
Tradename (non-amortizing) | ||||
Schedule of Goodwill and Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, Original Cost | 7,180 | 8,500 | ||
Finite-lived intangible assets, Accumulated Amortization | 0 | 0 | ||
Finite-lived intangible assets, Net Book Value | $ 7,180 | $ 8,500 | ||
Minimum | Tradenames | ||||
Schedule of Goodwill and Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, Useful Life (years) | 4 years | |||
Minimum | License agreements | ||||
Schedule of Goodwill and Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, Useful Life (years) | 3 years | |||
Maximum | Tradenames | ||||
Schedule of Goodwill and Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, Useful Life (years) | 20 years | |||
Maximum | License agreements | ||||
Schedule of Goodwill and Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, Useful Life (years) | 5 years |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets - Schedule of Future Amortization (Details) $ in Thousands | Jan. 28, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,013 | $ 1,427 |
2,014 | 877 |
2,015 | 709 |
2,016 | 684 |
2,017 | 682 |
Thereafter | 235 |
Total | $ 4,614 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Feb. 02, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 6,700 | $ 6,300 | |
Property and equipment, gross | 57,310 | 69,356 | |
Accumulated depreciation | (40,618) | (43,464) | |
Property and equipment, net | 16,692 | 25,892 | |
Impairment of Long-Lived Assets Held-for-use | 5,600 | 1,000 | |
Building and Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 17,122 | 26,325 | |
Furniture and Fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 31,404 | 34,599 | |
Furniture and Fixtures | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property and equipment | 5 years | ||
Furniture and Fixtures | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property and equipment | 7 years | ||
Machinery and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 8,784 | 8,432 | |
Machinery and Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property and equipment | 3 years | ||
Machinery and Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property and equipment | 7 years | ||
Assets Held under Capital Leases | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | 200 | ||
Accumulated depreciation | (400) | (200) | |
Property and equipment, net | $ 100 | $ 200 |
Related Party Transactions - Te
Related Party Transactions - Textuals (Details) $ / shares in Units, ft² in Thousands | 3 Months Ended | 12 Months Ended | 62 Months Ended | ||||
May 03, 2014USD ($) | Jan. 28, 2017USD ($)ft²shares | Jan. 30, 2016USD ($) | Jan. 28, 2012USD ($) | Feb. 02, 2013 | Jan. 31, 2015USD ($) | Apr. 18, 2012$ / sharesshares | |
Related Party Transaction [Line Items] | |||||||
Advance Royalties | $ 300,000 | ||||||
Due from Related Parties, Current | $ 400,000 | ||||||
Expenses charged under Services Agreement | $ 222,373,000 | $ 249,540,000 | |||||
Royalty Expense | 300,000 | ||||||
Due from Related Parties | $ 200,000 | ||||||
Majority Shareholder [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Aggregate shares of common stock owned by related parties (in shares) | shares | 7,742,282 | ||||||
Aggregate percentage of shares owned by related parties | 50.00% | ||||||
Glenn, Stephen and Arlene Nussdorf | |||||||
Related Party Transaction [Line Items] | |||||||
Total payments for transportation services (less than $0.1 million and approximately $0.1 million respectively) | $ 100,000 | ||||||
Balance due to affiliate (less than $0.1 million and $0.3 million respectively) | $ 0 | ||||||
Rene Garcia Entitites | |||||||
Related Party Transaction [Line Items] | |||||||
Aggregate percentage of shares owned by related parties | 14.30% | ||||||
Aggregate shares of common stock owned by noncontrolling owners | shares | 2,211,269 | ||||||
Reba Americas LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Aggregate percentage of shares owned by related parties | 50.00% | ||||||
Revenue from related parties | $ 3,000,000 | $ 2,900,000 | |||||
Quality King Distributors, Inc. | |||||||
Related Party Transaction [Line Items] | |||||||
Balance due to affiliate (less than $0.1 million and $0.3 million respectively) | $ 100,000 | ||||||
Square footage of facility in Bellport, NY | ft² | 560 | ||||||
Approximate area of facility occupied (percent) | 50.00% | ||||||
Expenses charged under Services Agreement | $ 900,000 | $ 1,000,000 | $ 700,000 | ||||
Administrative fee per Services Agreement (percent) | 2.00% | ||||||
Quality King Distributors, Inc. | Building | |||||||
Related Party Transaction [Line Items] | |||||||
Monthly sublease payments | $ 240,000 | ||||||
Annual sublease increase (as a percent) | 3.00% | ||||||
Total sublease payments during period | $ 2,800,000 | $ 2,700,000 | |||||
Shawn Carter Entities | |||||||
Related Party Transaction [Line Items] | |||||||
Aggregate number of shares called by warrants | shares | 1,599,999 | ||||||
Exercise price or warrants | $ / shares | $ 8 | ||||||
Term of license agreement | 5 years | ||||||
Isaac Mizrahi [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
License Costs | $ 100,000 | ||||||
MLB [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
License Costs | $ 100,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Total purchases from related parties | $ 7,943 | $ 21,133 | |
Due to related parties | 1,017 | 262 | |
Affiliates, Lighthouse [Member] | |||
Related Party Transaction [Line Items] | |||
Total purchases from related parties | 0 | 17 | |
Due to related parties | 90 | $ 134 | |
Jacavi | |||
Related Party Transaction [Line Items] | |||
Total purchases from related parties | 5,571 | 17,813 | |
Due to related parties | 590 | 29 | |
Quality King | |||
Related Party Transaction [Line Items] | |||
Total purchases from related parties | 78 | 68 | |
Due to related parties | 0 | (9) | |
Cloudbreak | |||
Related Party Transaction [Line Items] | |||
Total purchases from related parties | 0 | 0 | |
Due to related parties | 0 | 18 | |
Reba Americas LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Total purchases from related parties | 2,294 | $ 3,235 | |
Due to related parties | $ 337 | $ 90 |
Accrued Expenses and Other Li49
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Jan. 28, 2017 | Jan. 30, 2016 |
Payables and Accruals [Abstract] | ||
Payroll and related | $ 6,564 | $ 7,939 |
Customer allowances | 2,766 | 4,691 |
Advertising, promotion and royalties | 7,250 | 8,592 |
Taxes other than income taxes | 611 | 585 |
Deferred Tax Liabilities, Other | 0 | 0 |
Accrued Insurance | 1,127 | 1,263 |
Other | 10,368 | 10,135 |
Total | $ 28,686 | $ 33,205 |
Revolving Credit Facility and50
Revolving Credit Facility and Notes Payable to Affiliates - Schedule (Details) - USD ($) $ in Thousands | Jan. 28, 2017 | Jan. 30, 2016 |
Debt Disclosure [Abstract] | ||
Revolving credit facility interest payable monthly, secured by a pledge of substantially all of the Company's assets | $ 0 | $ 13,078 |
Subordinated notes payable-affiliates | 125,366 | 125,366 |
Debt, current and noncurrent | 125,366 | 138,444 |
Less current portion | 0 | 0 |
Total long-term debt | $ 125,366 | $ 138,444 |
Revolving Credit Facility and51
Revolving Credit Facility and Notes Payable to Affiliates - Textuals (Details) | 12 Months Ended | ||
Jan. 28, 2017USD ($)real_estate_trust | Jan. 30, 2016USD ($) | Apr. 25, 2014USD ($) | |
Debt Instrument [Line Items] | |||
Maximum borrowing capacity on revolving credit facility | $ 175,000,000 | ||
Minimum availability under the credit facility | $ 10,000,000 | ||
Availability under the credit facility | 94,700,000 | ||
Letter of credit, available amount | 25,000,000 | ||
Notes payable-affiliates | 125,366,000 | $ 125,366,000 | |
Interest expense | 7,143,000 | 7,191,000 | |
Interest paid | 1,153,000 | 1,567,000 | |
Notes payable | |||
Debt Instrument [Line Items] | |||
Allowable principal repayments on subordinated notes prior to repayment of senior note | $ 0 | ||
Time period subsequent to repayment of senior note before repayment of subordinated borrowings is allowable | 3 months | ||
Minimum excess availability | $ 17,500,000 | ||
Minimum excess availability as a percentage of the borrowing base certificate | 17.50% | ||
Minimum fixed charge coverage ratio | 1.1 | ||
Interest expense | $ 6,000,000 | 5,300,000 | |
Interest payable | $ 50,800,000 | $ 44,800,000 | |
Parent Company and Domestic Subsidiaries | |||
Debt Instrument [Line Items] | |||
Percentage of outstanding equity interests in subsidiaries secured under obligations | 100.00% | ||
Foreign Subsidiaries | |||
Debt Instrument [Line Items] | |||
Percentage of outstanding equity interests in subsidiaries secured under obligations | 66.00% | ||
Quality King Distributors, Inc. | |||
Debt Instrument [Line Items] | |||
Notes payable-affiliates | $ 35,000,000 | ||
Quality King Distributors, Inc. | Notes payable | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Principal repayments on note | $ 0 | ||
Nussdorf Trusts | |||
Debt Instrument [Line Items] | |||
Notes payable-affiliates | $ 85,400,000 | ||
Number of real estate trusts holding note | real_estate_trust | 6 | ||
Nussdorf Trusts | Notes payable | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.00% | ||
Glenn and Stephen Nussdorf | |||
Debt Instrument [Line Items] | |||
Notes payable-affiliates | $ 5,000,000 | ||
Glenn and Stephen Nussdorf | Notes payable | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Increase in the nominal interest rate | 2.00% | ||
Principal repayments on note | $ 0 | ||
Interest paid | $ 0 |
Income Taxes - Schedules (Detai
Income Taxes - Schedules (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 28, 2017 | Jan. 30, 2016 | |
Current: | ||||
Federal | $ 0 | $ 22 | ||
State and local | 329 | 429 | ||
Total current | 329 | 451 | ||
Deferred: | ||||
Federal | (7,782) | (3,620) | ||
State and local | (1,112) | (531) | ||
State and local | (290) | 697 | ||
Total deferred | (9,184) | (3,454) | ||
Income tax (benefit) provision | (8,856) | (3,003) | ||
Valuation allowance adjustment | 8,656 | 3,454 | ||
Income tax provision | (199) | 451 | ||
Reconciliation of the statutory federal income tax rate to pretax income | ||||
(Benefit) provision at Federal statutory rates | (8,343) | (3,927) | ||
Permanent adjustments | 39 | 91 | ||
State tax, net of Federal | (828) | (203) | ||
Change in valuation allowance | 8,656 | 3,454 | ||
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | (29) | 1,033 | ||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | 306 | 3 | ||
Other | 0 | 0 | ||
Assets: | ||||
Net operating loss and tax credit carryforwards | $ 18,546 | $ 11,625 | ||
Foreign net operating loss carryforwards | 2,722 | 2,432 | ||
Inventories | 3,657 | 6,293 | ||
Property and equipment | 7,860 | 5,972 | ||
Accounts receivable allowances | 988 | 260 | ||
Goodwill and intangibles | 174 | 102 | ||
Accrued interest | 12,319 | 10,381 | ||
Deferred rent | 3,387 | 3,489 | ||
Accrued expenses | 4,398 | 4,139 | ||
Share-based compensation | 2,827 | 3,021 | ||
Other | 1,939 | 2,816 | ||
Total deferred tax assets | 58,817 | 50,530 | ||
Valuation allowance | (57,859) | (49,203) | ||
Net deferred tax assets | 958 | 1,327 | ||
Liabilities: | ||||
Tradename | (958) | (1,327) | ||
Total deferred tax liabilities, net | 2,872 | 3,400 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | ||||
Unrecognized tax benefits | 1,219 | 1,079 | 1,397 | 1,219 |
Portion if recognized would reduce tax expense and effective rate | 1,397 | 1,219 | ||
Accrued interest on unrecognized tax benefits | 786 | 717 | ||
Accrued penalties on unrecognized tax benefits | 220 | 220 | ||
Reconciliation of beginning and ending unrecognized tax benefits [Roll Forward] | ||||
Balance at beginning of year | 1,219 | 1,079 | ||
Additions for tax positions of the current year | 132 | 162 | ||
Additions for tax positions of prior years | 46 | 82 | ||
Balance at end of year | 1,397 | 1,219 | ||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | $ 0 | $ (104) | ||
Tradenames | ||||
Liabilities: | ||||
Tradename | $ (2,872) | $ (3,400) |
Income Taxes - Textuals (Detail
Income Taxes - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance adjustment | $ 8,700 | $ (3,500) | |
Pre-tax operating loss | (23,838) | (11,220) | |
Income tax benefit related to Parlux | (199) | 451 | |
Unrecognized tax benefits | 1,397 | 1,219 | $ 1,079 |
Accrued interest and penalties | 1,000 | $ 900 | |
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 47,500 | ||
Puerto Rico | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 29,600 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards subject to expiration | 78,300 | ||
Other long-term liabilities | |||
Operating Loss Carryforwards [Line Items] | |||
Net deferred tax liability | $ 2,900 |
Fair Value Measurements Fair 54
Fair Value Measurements Fair Value Measurements (Details) - USD ($) | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property and Equipment | $ 0 | $ 0 | |
Property and Equipment impairment charges | 5,625,000 | $ 1,032,000 | |
Impairment of Long-Lived Assets Held-for-use | $ 5,600,000 | 1,000,000 | |
Non-recurring basis | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property and Equipment | 0 | 0 | |
Non-recurring basis | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property and Equipment | 0 | 0 | |
Non-recurring basis | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property and Equipment | 0 | 0 | |
Net Carrying Value | Non-recurring basis | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property and Equipment | $ 0 | $ 0 |
Shareholders' Equity Shareholde
Shareholders' Equity Shareholders' Equity - Textuals (Details) $ / shares in Units, $ in Thousands | Apr. 18, 2012$ / sharesshares | Oct. 31, 2010stock_option_plan | Aug. 11, 2008$ / sharesshares | Jan. 28, 2017USD ($)$ / sharesshares | Jan. 30, 2016USD ($)$ / sharesshares | Jan. 31, 2015shares | Feb. 01, 2014shares | Jan. 29, 2011shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Preferred stock shares authorized | 1,000,000 | 1,000,000 | 1,000,000 | |||||||
Preferred stock shares issued | 0 | 0 | 0 | |||||||
Treasury stock shares | 898,249 | 898,249 | 898,249 | |||||||
Treasury stock value | $ | $ 8,577 | $ 8,577 | ||||||||
Treasury shares repurchased during period | 0 | 0 | 0 | |||||||
Initial common stock reserved under stock option plan (shares) | 1,000,000 | |||||||||
Automatic increase in common stock authorized under stock option plan (percentage) | 1.50% | |||||||||
Current common stock reserved under stock option plan (shares) | 2,194,305 | |||||||||
Previous number of stock option plans | stock_option_plan | 2 | |||||||||
Stock options granted (shares) | 1,030,053 | |||||||||
Share-based compensation expense | $ | $ 87 | $ 297 | ||||||||
Weighted average estimated fair values of options granted during period | $ / shares | $ 1.54 | $ 2.96 | ||||||||
Unrecognized compensation expense related to stock options that will vest during next fiscal period | $ | $ 600 | |||||||||
Expected weighted-average recognition period | 4 years 6 months | |||||||||
Aggregate intrinsic value of options exercised during period | $ | $ 42 | |||||||||
Cash received from option exercises during period | $ | $ 57 | |||||||||
Stock Options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock options granted (shares) | [1] | 410,000 | ||||||||
Warrants | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Warrants to purchase common stock issued (shares) | 4,805,304 | 1,500,000 | 0 | [2] | ||||||
Exercise price of warrants granted (usd per share) | $ / shares | $ 8 | $ 23.94 | $ 0 | [2] | ||||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjZkMWFkMDRkYmM2YzRkMzFiN2IwMGQyNDhjMTg2N2I2fFRleHRTZWxlY3Rpb246NDlCMDQxMkU0MDM5QkYwQTAzRjUxRUFBOTM1RUY5MjYM} | |||||||||
[2] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjZkMWFkMDRkYmM2YzRkMzFiN2IwMGQyNDhjMTg2N2I2fFRleHRTZWxlY3Rpb246N0I5QTMxRTIwNkQyQUMxNjA0NDgxRUFBOTMzRjI5MkEM} |
Shareholders' Equity Sharehol56
Shareholders' Equity Shareholders' Equity - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 28, 2017USD ($)$ / sharesshares | ||
Number of Shares | ||
Granted (shares) | 1,030,053 | |
Stock Options | ||
Number of Shares | ||
Outstanding as of January 28, 2012 (shares) | 975,916 | |
Granted (shares) | 410,000 | [1] |
Exercised (shares) | 0 | |
Forfeited (shares) | (201,916) | |
Outstanding as of February 2, 2013 (shares) | 1,184,000 | |
Vested and expected to vest as of February 2, 2013 (shares) | 766,500 | |
Exercisable as of February 2, 2013 (shares) | 766,500 | |
Weighted Average Exercise Price | ||
Outstanding as of January 28, 2012 (usd per share) | $ / shares | $ 8.01 | |
Granted (usd per share) | $ / shares | 2.30 | [1] |
Exercised (usd per share) | $ / shares | 0 | |
Forfeited (usd per share) | $ / shares | 7.83 | |
Outstanding as of February 2, 2013 (usd per share) | $ / shares | 6.07 | |
Vested as of February 2, 2013 (usd per share) | $ / shares | 8.09 | |
Exercisable as of February 2, 2013 (usd per share) | $ / shares | $ 8.09 | |
Weighted Average Remaining Contractual Life | ||
Outstanding as of January 30, 2016 | 6 years 10 months 24 days | |
Vested and expected to vest as of January 30, 2016 | 6 years 10 months 24 days | |
Exercisable as of January 30, 2016 | 6 years 10 months 24 days | |
Aggregate Intrinsic Value | ||
Outstanding as of January 30, 2016 | $ | $ 0 | |
Vested and expected to vest as of January 30, 2016 | $ | 0 | |
Exercisable as of January 30, 2016 | $ | $ 0 | |
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjZkMWFkMDRkYmM2YzRkMzFiN2IwMGQyNDhjMTg2N2I2fFRleHRTZWxlY3Rpb246NDlCMDQxMkU0MDM5QkYwQTAzRjUxRUFBOTM1RUY5MjYM} |
Shareholders' Equity Sharehol57
Shareholders' Equity Shareholders' Equity - Warrants (Details) - Warrants - USD ($) $ / shares in Units, $ in Thousands | Apr. 18, 2012 | Aug. 11, 2008 | Jan. 28, 2017 | |
Number of Warrants | ||||
Outstanding as of January 28, 2012 (shares) | 6,299,971 | |||
Granted (shares) | 4,805,304 | 1,500,000 | 0 | [1] |
Exercised (shares) | 0 | |||
Forfeited (shares) | 0 | |||
Outstanding as of February 2, 2013 (shares) | 6,299,971 | |||
Vested as of February 2, 2013 (shares) | 0 | |||
Exercisable as of February 2, 2013 (shares) | 0 | |||
Weighted Average Exercise Price | ||||
Outstanding as of January 28, 2012 (usd per share) | $ 11.80 | |||
Granted (usd per share) | $ 8 | $ 23.94 | 0 | [1] |
Exercised (usd per share) | 0 | |||
Forfeited (usd per share) | 0 | |||
Outstanding as of February 2, 2013 (usd per share) | 11.80 | |||
Vested as of February 2, 2013 (usd per share) | 11.80 | |||
Exercisable as of February 2, 2013 (usd per share) | $ 11.80 | |||
Weighted Average Remaining Contractual Life | ||||
Outstanding as of February 2, 2013 (in years) | 1 year 4 months 24 days | |||
Vested as of February 2, 2013 (in years) | 1 year 4 months 24 days | |||
Exercisable as of February 2, 2013 (in years) | 1 year 4 months 24 days | |||
Aggregate Intrinsic Value | ||||
Outstanding as of January 30, 2016 | $ 0 | |||
Vested and expected to vest as of January 30, 2016 | 0 | |||
Exercisable as of January 30, 2016 | $ 0 | |||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjZkMWFkMDRkYmM2YzRkMzFiN2IwMGQyNDhjMTg2N2I2fFRleHRTZWxlY3Rpb246N0I5QTMxRTIwNkQyQUMxNjA0NDgxRUFBOTMzRjI5MkEM} |
Shareholders' Equity Sharehol58
Shareholders' Equity Shareholders' Equity - Option Valuation Assumptions (Details) | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Feb. 01, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 5 years | 5 years | |
Expected dividend yield | 0.00% | 0.00% | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 86.00% | ||
Risk free interest rates | 1.60% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 88.90% | ||
Risk free interest rates | 1.70% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) | 12 Months Ended |
Jan. 28, 2017 | |
Schedule of Defined Contribution Plans Disclosures [Line Items] | |
Minimum elective contribution percentage | 1.00% |
Maximum elective contribution percentage | 100.00% |
Minimum | |
Schedule of Defined Contribution Plans Disclosures [Line Items] | |
Employer matching contributions vesting period | 1 year |
Maximum | |
Schedule of Defined Contribution Plans Disclosures [Line Items] | |
Employer matching contributions vesting period | 4 years |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies - Medical Insurance (Details) - USD ($) | 12 Months Ended | |
Jan. 28, 2017 | Jan. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Individual stop loss coverage limit for employee medical claims | $ 125,000 | |
Aggregate stop loss coverage limit for employee medical claims | 3,800,000 | |
Self Insurance Reserve | $ 300,000 | $ 600,000 |
Commitments and Contingencies -
Commitments and Contingencies - Leases and Retail Store Rent (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 28, 2017 | Jan. 30, 2016 | |
Operating Leased Assets [Line Items] | ||
Capital Leases, Future Minimum Sublease Rentals | $ 600 | |
Operating lease expense | $ 4,600 | |
Aggregate Future Minimum Rental Payments Under Operating Leases | ||
2,013 | 28,231 | |
2,014 | 22,458 | |
2,015 | 16,733 | |
2,016 | 12,622 | |
2,017 | 10,639 | |
Thereafter | 41,214 | |
Total future minimum payments due | 131,897 | |
Monthly capital lease commitment amount | 104 | |
Schedule of Future Minimum Lease Payments Under Capital Leases | ||
2,016 | 1,321 | |
Total future minimum lease payments (1) | 1,321 | |
Less: Amount representing interest | (84) | |
Present value of minimum lease payments | 1,237 | |
Less: Current portion | (1,237) | |
Long-term portion of obligations under capital leases | $ 0 | 1,223 |
Corporate Office and Warehouse in Bellport, New York | Quality King Distributors, Inc. | ||
Operating Leased Assets [Line Items] | ||
Annual sublease increase (as a percent) | 3.00% | |
Retail Store Rent Expense | ||
Total | $ 2,900 | |
Retail Stores | ||
Operating Leased Assets [Line Items] | ||
Term of operating leases | 10 years | |
Retail Store Rent Expense | ||
Minimum rentals | $ 30,051 | 31,263 |
Contingent rentals | 523 | 1,018 |
Total | $ 30,574 | $ 32,281 |
Commitments and Contingencies62
Commitments and Contingencies Commitments and Contingencies - Advertising and Royalty Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 28, 2017 | Jan. 30, 2016 | |
Obligations Under License Agreements [Line Items] | ||
Royalty Expense | $ 300 | |
Aggregate Future Minimum Payments Under Licensing Agreements | ||
2,013 | $ 50,874 | |
2,014 | 35,210 | |
2,015 | 10,938 | |
2,016 | 10,317 | |
2,017 | 5,137 | |
Obligations Under Licensing Agreements, Future Minimum Payments Due Thereafter | 169 | |
Total future minimum payments due | 112,645 | |
Royalty Payments | ||
Aggregate Future Minimum Payments Under Licensing Agreements | ||
2,013 | 16,042 | |
2,014 | 10,680 | |
2,015 | 3,031 | |
2,016 | 2,310 | |
2,017 | 593 | |
Obligations Under Licensing Agreements, Future Minimum Payments Due Thereafter | 19 | |
Total future minimum payments due | 32,675 | |
Advertising Obligations | ||
Aggregate Future Minimum Payments Under Licensing Agreements | ||
2,013 | 34,832 | |
2,014 | 24,530 | |
2,015 | 7,907 | |
2,016 | 8,007 | |
2,017 | 4,544 | |
Obligations Under Licensing Agreements, Future Minimum Payments Due Thereafter | 150 | |
Total future minimum payments due | 79,970 | |
Selling, general and administrative expenses | ||
Obligations Under License Agreements [Line Items] | ||
Royalty Expense | $ 19,100 | $ 18,100 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2017USD ($) | Jan. 30, 2016USD ($)segment | ||
Segment Reporting Information [Line Items] | |||
Number of industry segments | segment | 2 | ||
Net sales | $ 468,865 | $ 541,964 | |
Gross profit | 221,332 | 257,624 | |
Total assets | 310,300 | 351,046 | |
Retail | |||
Segment Reporting Information [Line Items] | |||
Net sales | 237,297 | 293,395 | |
Gross profit | 116,791 | 147,468 | |
Total assets | 364,117 | 372,651 | |
Reportable Subsegments | |||
Segment Reporting Information [Line Items] | |||
Total assets | 1,042,672 | 1,009,575 | |
Wholesale | |||
Segment Reporting Information [Line Items] | |||
Net sales | 231,568 | 248,569 | |
Gross profit | 104,541 | 110,156 | |
Total assets | 678,555 | 636,924 | |
Wholesale | Foreign countries | |||
Segment Reporting Information [Line Items] | |||
Net sales | 35,100 | 34,500 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Total assets | [1] | $ (732,372) | $ (658,529) |
[1] | Adjustment to eliminate intercompany receivables and investment in subsidiaries |