Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2018 | Mar. 02, 2018 | Jul. 29, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Document Period End Date | Feb. 3, 2018 | ||
Entity Registrant Name | CHRISTOPHER & BANKS CORP | ||
Entity Central Index Key | 883,943 | ||
Current Fiscal Year End Date | --02-03 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 37,834,003 | ||
Entity Public Float | $ 47 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Feb. 03, 2018 | Jan. 28, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 23,077 | $ 35,006 |
Accounts receivable | 2,626 | 2,549 |
Merchandise inventories | 41,361 | 36,834 |
Prepaid expenses and other current assets | 2,715 | 3,485 |
Income taxes receivable | 172 | 516 |
Total current assets | 69,951 | 78,390 |
Property, equipment and improvements, net | 47,773 | 55,332 |
Other non-current assets: | ||
Deferred income taxes | 597 | 321 |
Other assets | 1,043 | 577 |
Total other non-current assets | 1,640 | 898 |
Total assets | 119,364 | 134,620 |
Current liabilities: | ||
Accounts payable | 20,825 | 13,867 |
Accrued salaries, wages and related expenses | 5,309 | 6,613 |
Accrued liabilities and other current liabilities | 26,201 | 26,426 |
Total current liabilities | 52,335 | 46,906 |
Non-current liabilities: | ||
Deferred lease incentives | 7,762 | 9,021 |
Deferred rent obligations | 6,621 | 6,576 |
Other non-current liabilities | 2,237 | 822 |
Total non-current liabilities | 16,620 | 16,419 |
Commitments | 0 | 0 |
Stockholders’ equity: | ||
Preferred stock — $0.01 par value, 1,000 shares authorized, none outstanding | 0 | 0 |
Common stock — $0.01 par value, 74,000 shares authorized, 47,625 and 47,425 shares issued, and 37,834 and 37,634 shares outstanding at February 3, 2018 and January 28, 2017, respectively | 475 | 473 |
Additional paid-in capital | 127,652 | 126,516 |
Retained earnings | 34,993 | 57,017 |
Common stock held in treasury, 9,791 shares at cost at February 3, 2018 and January 28, 2017 | (112,711) | (112,711) |
Accumulated other comprehensive loss | 0 | 0 |
Total stockholders’ equity | 50,409 | 71,295 |
Total liabilities and stockholders’ equity | $ 119,364 | $ 134,620 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 03, 2018 | Jan. 28, 2017 |
Stockholders’ equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 74,000,000 | 74,000,000 |
Common stock issued (in shares) | 47,625,000 | 47,425,000 |
Common stock outstanding (in shares) | 37,834,000 | 37,634,000 |
Common stock held in treasury (in shares) | 9,791,000 | 9,791,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 365,906 | $ 381,605 | $ 383,828 |
Merchandise, buying and occupancy costs | 252,399 | 253,483 | 254,350 |
Gross profit | 113,507 | 128,122 | 129,478 |
Other operating expenses: | |||
Selling, general and administrative | 123,398 | 133,768 | 128,413 |
Depreciation and amortization | 12,434 | 12,300 | 12,048 |
Impairment of long-lived assets | 318 | 786 | 281 |
Total other operating expenses | 136,150 | 146,854 | 140,742 |
Operating loss | (22,643) | (18,732) | (11,264) |
Interest expense, net | (154) | (159) | (115) |
Other income | 0 | 911 | 0 |
Loss before income taxes | (22,797) | (17,980) | (11,379) |
Income tax (benefit) provision | (773) | (197) | 37,715 |
Net loss | $ (22,024) | $ (17,783) | $ (49,094) |
Basic loss per share: | |||
Net loss (in dollars per share) | $ (0.59) | $ (0.48) | $ (1.33) |
Basic shares outstanding (in shares) | 37,212 | 37,016 | 36,886 |
Diluted loss per share: | |||
Net loss (in dollars per share) | $ (0.59) | $ (0.48) | $ (1.33) |
Diluted shares outstanding (in shares) | 37,212 | 37,016 | 36,886 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (22,024) | $ (17,783) | $ (49,094) |
Other comprehensive income, net of tax: | |||
Unrealized holding gains on securities arising during the period, net of taxes of $0, $0, and $(1), respectively | 0 | 0 | 1 |
Reclassification adjustment for losses included in net income, net of taxes of $0, $0 and $(1), respectively | 0 | 0 | 1 |
Total other comprehensive income | 0 | 0 | 2 |
Comprehensive loss | $ (22,024) | $ (17,783) | $ (49,092) |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Tax (benefit) expense related to unrealized holding gains (losses) | $ 0 | $ 0 | $ (1) |
Tax expense (benefit) related to reclassification adjustment for losses included in net income | $ 0 | $ 0 | $ (1) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Treasury | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Jan. 31, 2015 | 9,791 | 36,929 | ||||
Beginning balance at Jan. 31, 2015 | $ 135,889 | $ (112,711) | $ 466 | $ 124,242 | $ 123,894 | $ (2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive loss | (49,092) | (49,094) | 2 | |||
Stock issued upon exercise of options, net (in shares) | 0 | |||||
Stock issued upon exercise of options, net | 0 | $ 0 | 0 | |||
Issuance of restricted stock, net of forfeitures (in shares) | 150 | |||||
Issuance of restricted stock, net of forfeitures | (26) | $ 2 | (28) | |||
Stock-based compensation expense | 1,637 | 1,637 | ||||
Ending balance (in shares) at Jan. 30, 2016 | 9,791 | 37,079 | ||||
Ending balance at Jan. 30, 2016 | 88,408 | $ (112,711) | $ 468 | 125,851 | 74,800 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive loss | (17,783) | (17,783) | ||||
Stock issued upon exercise of options, net (in shares) | 9 | |||||
Stock issued upon exercise of options, net | 17 | 17 | ||||
Issuance of restricted stock, net of forfeitures (in shares) | 546 | |||||
Issuance of restricted stock, net of forfeitures | (23) | $ 5 | (28) | |||
Stock-based compensation expense | 676 | 676 | ||||
Ending balance (in shares) at Jan. 28, 2017 | 9,791 | 37,634 | ||||
Ending balance at Jan. 28, 2017 | 71,295 | $ (112,711) | $ 473 | 126,516 | 57,017 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive loss | (22,024) | (22,024) | ||||
Issuance of restricted stock, net of forfeitures (in shares) | 200 | |||||
Issuance of restricted stock, net of forfeitures | (26) | $ 2 | (28) | |||
Stock-based compensation expense | 1,164 | 1,164 | ||||
Ending balance (in shares) at Feb. 03, 2018 | 9,791 | 37,834 | ||||
Ending balance at Feb. 03, 2018 | $ 50,409 | $ (112,711) | $ 475 | $ 127,652 | $ 34,993 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Cash flows from operating activities: | |||
Net loss | $ (22,024) | $ (17,783) | $ (49,094) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 12,434 | 12,300 | 12,048 |
Impairment of long-lived assets | 318 | 786 | 281 |
Deferred income taxes, net | (276) | 72 | 37,544 |
Gain from company-owned life insurance | 0 | (911) | 0 |
Amortization of premium on investments | 0 | 7 | 46 |
Amortization of financing costs | 62 | 62 | 62 |
Deferred lease-related liabilities | (1,322) | (911) | 3,267 |
Stock-based compensation expense | 1,164 | 676 | 1,637 |
Loss on disposal of assets | 0 | 1 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (77) | 1,518 | (67) |
Merchandise inventories | (4,527) | 5,647 | 2,837 |
Prepaid expenses and other assets | 242 | 5,567 | (2,214) |
Income taxes receivable | 344 | (3) | 332 |
Accounts payable | 6,796 | (2,610) | (1,670) |
Accrued liabilities | (1,293) | 5,972 | 370 |
Other liabilities | 1,414 | (475) | 3 |
Net cash (used in) provided by operating activities | (6,745) | 9,915 | 5,382 |
Cash flows from investing activities: | |||
Purchases of property, equipment and improvements | (5,158) | (10,327) | (26,082) |
Proceeds from company-owned life insurance | 0 | 911 | 0 |
Maturities of available-for-sale investments | 0 | 3,008 | 14,987 |
Net cash used in investing activities | (5,158) | (6,408) | (11,095) |
Cash flows from financing activities: | |||
Shares redeemed for payroll taxes | (26) | (24) | (26) |
Exercise of stock options | 0 | 17 | 0 |
Net cash used in financing activities | (26) | (7) | (26) |
Net (decrease) increase in cash and cash equivalents | (11,929) | 3,500 | (5,739) |
Cash and cash equivalents at beginning of period | 35,006 | 31,506 | 37,245 |
Cash and cash equivalents at end of period | 23,077 | 35,006 | 31,506 |
Supplemental cash flow information: | |||
Interest paid | 188 | 192 | 168 |
Income taxes (refunded) paid | (243) | 106 | (223) |
Accrued purchases of property, equipment and improvements | $ 324 | $ 69 | $ 1,105 |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies | 12 Months Ended |
Feb. 03, 2018 | |
Accounting Policies [Abstract] | |
Nature of Business and Significant Accounting Policies | Nature of Business and Significant Accounting Policies Christopher & Banks Corporation, through its wholly owned subsidiaries (collectively referred to as “Christopher & Banks”, “the Company”, “we” or “us”), operates retail stores selling women’s apparel and accessories in the United States ("U.S."). The Company operated 463 , 484 and 518 stores as of February 3, 2018 , January 28, 2017 and January 30, 2016 , respectively. The Company also operates an eCommerce website for its Christopher & Banks and C.J. Banks brands at www.christopherandbanks.com. Fiscal year and basis of presentation The Company follows the standard fiscal year of the retail industry, which is a fifty-two or fifty-three week period ending on the Saturday closest to January 31, and is designated by the calendar year in which the fiscal year commences. The fiscal year ended February 3, 2018 ("fiscal 2017 ") consisted of fifty-three weeks, while the fiscal years ended January 28, 2017 ("fiscal 2016 "), and January 30, 2016 ("fiscal 2015 ") each consisted of fifty-two weeks. The consolidated financial statements include the accounts of Christopher & Banks Corporation and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during reporting periods. As a result, actual results could differ because of the use of these estimates and assumptions. Cash and cash equivalents Cash and cash equivalents consist of cash on hand and in banks and investments purchased with an original maturity of ninety days or less. Accounts Receivable Accounts receivable consist primarily of amounts receivable from customers and amounts due from landlords. Credit card receivables relate to amounts due from payment processing entities that are collected one to five days after the related sale transaction occurs. Accounts Receivable consisted of the following (in thousands): February 3, 2018 January 28, 2017 Credit card receivables $ 2,229 $ 1,900 Amounts due from landlords — 214 Other receivables 397 435 Total accounts receivable $ 2,626 $ 2,549 Inventory valuation Merchandise inventories are stated at the lower of cost or market utilizing the retail inventory method. The retail inventory method inherently requires management judgments and estimates, such as the amount and timing of permanent markdowns to clear unproductive or slow-moving inventory, which may impact the ending inventory valuation as well as gross margins. Permanent markdowns designated for clearance activity are recorded when the utility of the inventory has diminished. Factors considered in the determination of permanent markdowns include current and anticipated demand, customer preferences, age of the merchandise and fashion trends. When a decision is made to permanently mark down merchandise, the resulting gross profit reduction is recognized. Physical inventories are generally taken annually, and inventory records are adjusted accordingly, resulting in the recording of actual shrinkage. Physical inventories are taken at all store locations approximately three weeks before the end of the fiscal year. Shrinkage is estimated as a percentage of net sales at interim periods and for this approximate three-week period, based on historical shrinkage rates. Merchandise inventory consisted of the following (in thousands): February 3, 2018 January 28, 2017 Merchandise - in store/eCommerce $ 34,225 $ 28,584 Merchandise - in transit 7,136 8,250 Total merchandise inventories $ 41,361 $ 36,834 Property, equipment and improvements, net Property, equipment and improvements are initially recorded at cost. Property and equipment is depreciated on a straight-line basis over its estimated useful life as follows: Description Estimated Useful Lives Building and building improvements 25 years Computer hardware and software 3 to 5 years Equipment, furniture and fixtures 3 to 10 years Store leasehold improvements Shorter of the useful life or term of the lease, typically 10 years Repairs and maintenance which do not extend an asset’s useful life are expensed as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for that period. Long-lived assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. When evaluating long-lived assets for potential impairment, we first compare the carrying value of the asset to the asset's estimated future cash flows (undiscounted and without interest charges). If the sum of the estimated future cash flows is less than the carrying value of the asset, we calculate an impairment loss. The impairment loss calculation compares the carrying value of the asset to the asset's estimated fair value, which is typically based on estimated discounted future cash flows. We recognize an impairment loss if the amount of the asset's carrying value exceeds the asset's estimated fair value. If we recognize an impairment loss, the adjusted carrying amount of the asset becomes its new cost basis. For a depreciable long-lived asset, the new cost basis is depreciated over the remaining useful life of that asset. When reviewing long-lived assets for impairment, we group long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For long-lived assets deployed at store locations, we review for impairment at the individual store level. Our impairment loss calculations involve uncertainty because they require management to make assumptions and to apply judgment to estimate future cash flows and asset fair values, including estimating useful lives of the assets and selecting the discount rate that reflects the risk inherent in future cash flows. If actual results are not consistent with our estimates and assumptions used in estimating future cash flows and asset fair values, we may be exposed to losses that could be material. Revenue recognition Sales are recognized at the point of purchase when a customer takes possession of the merchandise and pays for the purchase with cash, credit card, debit card or gift card. The Company records eCommerce revenue upon the estimated date the customer receives the merchandise. Shipping and handling revenues are included in net sales. Sales are recognized net of a sales return reserve, which is based on historical sales return data. Sales taxes collected from customers are remitted to the appropriate taxing jurisdictions and are excluded from net sales. Gift cards are recorded as a liability when issued and until they are redeemed, at which point a sale is recorded. Unredeemed gift cards (“gift card breakage”) is recognized as a reduction of merchandise, buying and occupancy costs when the likelihood of a gift card being redeemed by a customer in the future is deemed remote and the Company determines that there is no legal obligation to remit the value of the unredeemed gift card to any state or local jurisdiction as unclaimed or abandoned property. The Company utilizes historical redemption patterns in order to estimate the rate and timing of breakage associated with gift cards. Based on historical redemption patterns, we currently recognize breakage for a portion of the gift card balances that remain outstanding following 36 months of issuance. Vendor allowances At certain times the Company receives allowances or credits from its merchandise vendors primarily related to goods that do not meet our quality standards. These allowances or credits are reflected as a reduction of merchandise inventory in the period they are received. The majority of merchandise is produced exclusively for the Company. Accordingly, the Company does not enter into any arrangements with vendors where payments or other consideration might be received in connection with the purchase or promotion of a vendor’s products such as buy-down agreements or cooperative advertising programs. Merchandise, buying and occupancy costs Merchandise, buying and occupancy costs include the cost of merchandise, markdowns, shrink, freight, shipping and handling charges, buyer and distribution center salaries, buyer travel, rent and other occupancy related costs, various merchandise design and development costs, miscellaneous merchandise-related expenses and other costs related to the Company's distribution network. Merchandise, buying and occupancy costs do not include any depreciation or amortization expense. Selling, general and administrative expenses Selling, general and administrative expenses include salaries, with the exception of buyer and distribution center salaries, other employee benefits, marketing, store supplies, payment processing fees, information technology-related costs, insurance, professional services, non-buyer travel and miscellaneous other selling and administrative related expenses. Selling, general and administrative expenses do not include any depreciation or amortization expense. Rent expense, deferred rent obligations and deferred lease incentives The Company leases all of its store locations under operating leases. Most of these lease agreements contain tenant improvement allowances, funded by landlord cash incentives or rent abatements, which are recorded as a deferred lease incentive liability and amortized as a reduction of rent expense over the term of the lease. For purposes of recognizing landlord incentives and minimum rental expense, the Company utilizes the date that it obtains the legal right to use and control the leased space, which is generally when the Company enters the space and begins to make improvements in preparation for opening a new store location. Certain lease agreements contain rent escalation clauses which provide for scheduled rent increases during the lease term or for rental payments commencing at a date other than the date of initial occupancy. Such escalating rent expense is recorded on a straight-line basis over the lease term, not including any renewal option periods, and the difference between the recognized rent expense and amounts payable under the lease are recorded as deferred rent obligations. The Company's leases may also provide for contingent rents, which are determined as a percentage of sales in excess of specified levels. When specified levels have been achieved or when management determines that achieving the specified levels during the fiscal year is probable, the Company records a current accrued liability along with the corresponding rent expense. A small portion of our leases contain renewal options that generally allow us to extend the lease for an additional five years . Advertising Advertising costs are expensed as incurred and included in selling, general and administrative expenses. Advertising costs for fiscal 2017 , fiscal 2016 and fiscal 2015 , were approximately $8.4 million , $8.5 million and $7.3 million , respectively. Customer loyalty program The Company’s Friendship Rewards loyalty program grants customers the ability to accumulate points based on purchase activity. Once a Friendship Rewards member achieves a certain point level, the member earns award certificates that may be redeemed towards future merchandise purchases. Points are accrued as unearned revenue and recorded as a reduction of net sales and a current liability as they are accumulated by members and certificates are earned. The liability is recorded net of estimated breakage based on historical redemption patterns and trends. Revenue and the related cost of sales are recognized upon redemption of the reward certificates, which expire approximately six weeks after issuance . The Friendship Rewards program liability as of February 3, 2018 and January 28, 2017 was approximately $3.5 million and $3.8 million , respectively, and is included in Accrued liabilities and other current liabilities on the consolidated balance sheet. Private label credit card program During fiscal 2014 , the Company launched a private label credit card program with Comenity Bank which provides for the issuance of credit cards bearing the Christopher & Banks and C.J. Banks brands. The sponsoring bank manages and extends credit to the Company's customers and is the sole owner of the accounts receivable generated under the program. In April 2017, the Company entered into a second amendment to the private label credit card plan agreement. As part of the program, the Company received a signing bonus of approximately $2.0 million from Comenity Bank and also earns revenue based on card usage by its customers. The deferred signing bonus is included in other liabilities and is being recognized in net sales ratably over the term of the contract. The other revenue based on customer usage of the card is recognized in net sales in the periods in which the related customer transaction occurs. During fiscal 2017 , fiscal 2016 and fiscal 2015 , the Company recognized approximately $1.2 million , $0.8 million and $0.7 million , respectively, in net royalty revenue which is included in net sales. In addition, the sponsoring bank reimburses the Company for certain marketing expenditures related to the program, subject to an annual cap on the amount of reimbursable expenses. Lease termination costs Discounted liabilities for future lease costs and the fair value of related subleases of closed locations are recorded when the stores are closed prior to the expiration of the lease or execution of a lease termination agreement. In assessing the discounted liabilities for future costs of obligations related to closed stores, the Company makes assumptions regarding amounts of future subleases. If these assumptions or their related estimates change in the future, the Company may be required to record additional exit costs or reduce exit costs previously accrued. Actual settlements may vary substantially from recorded obligations. As of February 3, 2018 and January 28, 2017 , our lease termination liability is not material. 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 an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value are categorized using defined hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair value measurements, as follows: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 – Inputs other than quoted prices included in Level 1 that are either directly or indirectly observable; and Level 3 – Unobservable inputs that are significant to the fair value of the asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Certain of the Company's financial assets and liabilities are recorded at their carrying amounts which approximate fair value, based on their short-term nature. These financial assets and liabilities include cash and cash equivalents, accounts receivable and accounts payable. The Company measures certain of its long-lived assets at fair value on a non-recurring basis. Long-lived asset impairment charges recorded during fiscal 2017 , fiscal 2016 fiscal and 2015 were measured at fair value using Level 3 inputs. Stock-based compensation Stock-based compensation is calculated using the estimated fair value of stock options on the date of grant, the Company uses the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the Company to estimate key assumptions such as expected term, volatility, risk-free interest rates and dividend yield to determine the fair value of stock options, based on both historical information and management judgment regarding market factors and trends. The Company recognizes stock-based compensation expense on a straight-line basis over the corresponding vesting period of the entire award, net of estimated forfeiture rates. The Company estimates expected forfeitures of share-based awards at the grant date and recognizes compensation cost only for those awards expected to vest. In estimating expected forfeitures, the Company analyzes historical forfeiture and termination information and considers how future termination rates are expected to differ from historical termination rates. The Company ultimately adjusts this forfeiture assumption to actual forfeitures. Any changes in the forfeiture assumptions do not impact the total amount of expense ultimately recognized over the vesting period. Instead, different forfeiture assumptions only impact the timing of expense recognition over the vesting period. If the actual forfeitures differ from management estimates, additional adjustments to compensation expense are recorded. Restricted stock awards are generally subject to forfeiture if employment or service terminates prior to the lapse of the restrictions. In addition, certain restricted stock awards have performance-based vesting provisions and are subject to forfeiture, in whole or in part, if these performance conditions are not achieved. Management assesses, on an ongoing basis, the probability of whether the performance criteria will be achieved and, once it is deemed probable, compensation expense is recognized over the relevant performance period. For those awards not subject to performance criteria, the cost of the restricted stock awards is expensed, which is determined to be the fair market value of the shares at the date of grant, on a straight-line basis over the vesting period. Time-based grants of restricted stock participate in dividend payments to the extent dividends are declared and paid prior to vesting. Income taxes Income taxes are calculated using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future income taxes attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We record a valuation allowance against our deferred tax assets when it is more likely than not that some portion or all of our deferred tax assets will not be realized. In determining the need for a valuation allowance, management is required to make judgments regarding future income, taxable income and the potential effects of the mix of income or losses in jurisdictions in which we operate. Deferred tax assets and liabilities are measured using the tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of such change. Net loss per common share The Company utilizes the two-class method of calculating earnings per share (“EPS”) where nonvested share-based payment awards that contain non-forfeitable rights to receive dividends or dividend equivalents (whether paid or unpaid) are participating securities, and thus, are included in the two-class method of computing EPS. Participating securities include nonvested employee restricted stock awards with time-based vesting, which contain non-forfeitable rights to receive dividend payments. Basic EPS is computed based on the weighted average number of shares of common stock outstanding during the applicable period, while diluted EPS is computed based on the weighted average number of shares of common and common equivalent shares outstanding. Segment reporting The Company reports its operations as one reportable segment, Retail Operations, which consists of one operating segment. The Company defines an operating segment on the same basis that it uses to evaluate performance and to allocate resources. The Company has also considered its organizational structure and design of its executive compensation programs. Therefore, the Company reports results as a single segment, which includes the operation of its retail stores, outlet stores, online purchases and mobile application. Recently issued accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance under Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers . ASU 2014-09 supersedes existing revenue recognition requirements and provides a new comprehensive revenue recognition model that requires entities to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers, Deferral of the Effective Date , which defers the effective date of the new revenue recognition standard by one year. As a result, ASU 2014-09 is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2017. We do not believe the adoption of this standard will have a material impact on our consolidated financial statements. The new revenue standard will require the Company to recognize gift card breakage proportional to actual gift card redemptions. We plan to adopt this ASU under the modified retrospective approach beginning in the first quarter of fiscal 2018 which includes a cumulative adjustment to retained earnings. Based on our current estimation, we do not anticipate this adjustment to retained earnings to exceed $2.0 million , primarily driven by the accelerated recognition of gift card breakage. We have finalized our conclusions regarding our revenue recognition policy and made all necessary updates to our internal controls over financial reporting. We are in the process of finalizing our disclosures under the enhanced requirements of the new standard. In February 2016, the FASB issued ASU No. 2016-02, Leases , which requires that lease arrangements longer than twelve months result in an entity recognizing an asset and liability. The updated guidance is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. We plan to adopt this ASU under the modified retrospective approach. We are currently evaluating the effect this guidance will have on our results of operations. We anticipate the ASU will have a material impact on our balance sheet, but the ASU is non-cash in nature and will not affect our cash position. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 addresses simplification of several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 was adopted in the current year on a prospective basis. The adoption of ASU 2016-09 did not have a material impact on the Company's consolidated financial statements mostly due to the impact of the tax valuation allowance. We reviewed all other recently issued accounting pronouncements and concluded they are either not applicable to our operations, or that no material effect is expected on our consolidated financial statements as a result of future adoption. |
Property, Equipment and Improve
Property, Equipment and Improvements, Net | 12 Months Ended |
Feb. 03, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Improvements, Net | Property, Equipment and Improvements, Net Property, equipment and improvements, net consisted of the following (in thousands): Description February 3, 2018 January 28, 2017 Land $ 1,597 $ 1,597 Corporate office, distribution center and related building improvements 12,753 12,700 Store leasehold improvements 50,094 49,450 Store furniture and fixtures 70,447 69,598 Corporate office and distribution center furniture, fixtures and equipment 5,053 4,880 Computer and point of sale hardware and software 33,126 32,313 Construction in progress 1,275 1,321 Total property, equipment and improvements, gross 174,345 171,859 Less accumulated depreciation and amortization (126,572 ) (116,527 ) Total property, equipment and improvements, net $ 47,773 $ 55,332 Upon performing the annual impairment analysis, the Company determined that improvements and equipment at certain under-performing stores, at stores identified for closure, and corporate were impaired. As a result, the Company recorded asset impairments related to property, equipment and improvements of $0.3 million , $0.8 million and $0.3 million in fiscal 2017 , fiscal 2016 , and fiscal 2015 , respectively. See Note 8 - Fair Value Measurements , for further detail. |
Accrued Liabilities and Current
Accrued Liabilities and Current Other Liabilities | 12 Months Ended |
Feb. 03, 2018 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities and Other Current Liabilities | Accrued Liabilities and Other Current Liabilities Accrued liabilities and other current liabilities consisted of the following (in thousands): February 3, 2018 January 28, 2017 Gift card and store credit liabilities $ 6,931 $ 7,414 Accrued Friendship Rewards Loyalty Program liability 3,539 3,770 Accrued income, sales and other taxes payable 1,587 1,239 Accrued occupancy-related expenses 3,432 3,614 Sales return reserve 1,079 943 eCommerce obligations 3,824 3,190 Other accrued liabilities 5,809 6,256 Total accrued liabilities and other current liabilities $ 26,201 $ 26,426 |
Credit Facility
Credit Facility | 12 Months Ended |
Feb. 03, 2018 | |
Debt Disclosure [Abstract] | |
Credit Facility | Credit Facility The Company is party to an amended and restated credit agreement (the "Credit Facility") with Wells Fargo Bank, N.A. (“Wells Fargo”), as lender. The Credit Facility was most recently amended and extended on September 8, 2014. The current expiration date is September 8, 2019. The Credit Facility provides the Company with revolving credit loans of up to $50.0 million in the aggregate, subject to a borrowing base formula based primarily on eligible credit card receivables, inventory and real estate, as such terms are defined in the Credit Facility, and up to $10.0 million of which may be drawn in the form of standby and documentary letters of credit. Borrowings under the Credit Facility will generally accrue interest at a rate ranging from 1.50% to 1.75% over the London Interbank Offered Rate ("LIBOR") or 0.50% to 0.75% over the Wells Fargo Prime Rate based on the amount of Average Daily Availability for the Fiscal Quarter immediately preceding each Adjustment Date, as such term is defined in the Credit Facility. The Company has the ability to select between the LIBOR or prime based rate at the time of the cash advance. The Credit Facility has an unused commitment fee of 0.25% . The Credit Facility contains customary events of default and various affirmative and negative covenants. The sole financial covenant contained in the Credit Facility requires the Company to maintain Availability at least equal to the greater of (a) ten percent ( 10% ) of the borrowing base or (b) $3.0 million . In addition, the Credit Facility permits the payment of dividends to the Company's stockholders if certain financial conditions are met. The Company was in compliance with all covenants and other financial provisions as of February 3, 2018 . The Company's obligations under the Credit Facility are secured by the assets of the Company and its subsidiaries. The Company has pledged substantially all of its assets as collateral security for the loans, including accounts owed to the Company, bank accounts, inventory, other tangible and intangible personal property, intellectual property (including patents and trademarks), and stock or other evidences of ownership of 100% of all of the Company's subsidiaries. The Company had no borrowings under the Credit Facility during fiscal 2017 , fiscal 2016 or fiscal 2015 . The total borrowing base at February 3, 2018 , was approximately $31.8 million . As of February 3, 2018 , the Company had open on-demand letters of credit of approximately $2.3 million . Accordingly, after reducing the borrowing base for the open letters of credit and the required minimum availability of the greater of $3.0 million , or 10.0% of the borrowing base, the net availability of revolving credit loans under the Credit Facility was approximately $26.3 million at February 3, 2018 . |
Stockholder's Equity and Stock-
Stockholder's Equity and Stock-Based Compensation | 12 Months Ended |
Feb. 03, 2018 | |
Equity [Abstract] | |
Stockholder's Equity and Stock-Based Compensation | Stockholder's Equity and Stock-Based Compensation Dividends The Credit Facility allows payment of dividends to the Company's stockholders if certain financial conditions are met. No dividends were paid in fiscal 2017 , fiscal 2016 or fiscal 2015 . S tock-based compensation The Company maintains the following stock plans approved by stockholders: the 2013 Directors' Equity Incentive Plan (the "2013 Plan") and the 2014 Stock Incentive Plan (the “2014 Plan”). The shares outstanding under the 2014 Plan may also include shares under the 2005 Stock Incentive Plan (the "2005 Plan") that were subject to outstanding awards on June 26, 2014. If, subsequent to June 26, 2014, shares subject to an award under the 2005 Plan are not purchased, are forfeited or reacquired by the Company, or the award is terminated or canceled, then the comparable number of shares are available for issuance as provided in the 2014 Plan. Under the 2014 Plan and the 2013 Plan, the Company may grant options to purchase common stock to employees and non-employee members of the Board, respectively, at a price not less than 100% of the fair market value of the common stock on the option grant date. In general, (i) time-based stock options granted to employees vest over three years and are exercisable up to 10 years from the date of grant; and (ii) performance-based stock options vest, 50% following a determination that the performance criteria have been met and 50% on the second anniversary of the date of grant, with the number of options vesting based on the extent to which, if at all, the performance criteria have been achieved. No options have been granted to Directors in the last five fiscal years. The Company may also grant shares of restricted stock or units representing the right to receive shares of stock to its employees and non-employee members of the Board. The grantee cannot transfer the shares or units before the respective shares or units vest. Shares of nonvested restricted stock are considered to be currently issued and outstanding, but units representing the right to receive stock are not. Grants to employees of restricted stock or restricted stock units generally have original vesting schedules of one to three years, while restricted grants to Directors typically vest approximately one year after the date of grant. Approximately 1.0 million and 2.4 million shares were authorized for issuance under the 2013 Plan and the 2014 Plan, respectively. As of February 3, 2018 , there were approximately 0.3 million and 0.8 million shares available for future grant under the 2013 Plan and the 2014 Plan, respectively. In addition, as of February 3, 2018 , there are approximately 0.4 million options outstanding and 0.2 million performance shares authorized which were granted to our Interim Chief Executive Officer in fiscal 2016 outside of the above plans as an inducement to employment. The total pre-tax compensation expense related to all stock-based awards for fiscal 2017 , fiscal 2016 and fiscal 2015 was approximately $1.2 million , $0.7 million and $1.6 million , respectively. Stock-based compensation expense is included in merchandise, buying and occupancy expenses for the buying and distribution employees, and in selling, general and administrative expense for all other employees. Black-Scholes assumptions The Company uses the Black-Scholes option-pricing model to value stock options for grants to employees and non-employee directors. Using this option-pricing model, the fair value of each stock option award is estimated on the date of grant and is expensed on a straight-line basis over the vesting period, as the stock options are subject to pro-rata vesting. The expected volatility assumption is based on the historical volatility of the Company’s stock over a term equal to the expected term of the option granted. The expected term of stock option awards granted is derived from the Company’s historical experience and represents the period of time that awards are expected to be outstanding. The risk-free interest rate is based on the implied yield on a U.S. Treasury constant maturity with a remaining term equal to the expected term of the option granted. The table below shows the weighted average assumptions relating to the valuation of stock options granted during fiscal 2017 , fiscal 2016 and fiscal 2015 . Fiscal 2017 Fiscal 2016 Fiscal 2015 Expected dividend yield —% —% —% Expected volatility 76.65-84.94% 74.93-77.13% 68.62% Risk-free interest rate 1.66-2.05% 1.18-1.84% 1.73% Expected term 3.00-5.00 years 5.00 years 5.00 years Stock-Based Compensation Activity — Stock Options The following tables present a summary of stock option activity for fiscal 2017 : Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Life Outstanding, beginning of period 3,513,376 3.48 Granted 2,114,951 1.28 Exercised — — Canceled - Vested (1,648,450 ) 3.94 Canceled - Nonvested (Forfeited) (436,051 ) 1.56 Outstanding, end of period 3,543,826 $ 2.19 $ — 5.06 years Exercisable, end of period 1,312,076 $ 3.47 $ — 4.35 years Number of Shares Weighted Average Grant Date Fair Value Nonvested, beginning of period 1,142,369 $ 0.80 Granted 2,114,951 0.74 Vested (589,519 ) 0.84 Forfeited (436,051 ) 0.75 Nonvested, end of period 2,231,750 0.74 The weighted average fair value for options granted during fiscal 2017 and fiscal 2016 was $0.74 and $0.81 , respectively. The fair value of options vesting during fiscal 2017 and fiscal 2016 was approximately $0.84 and $3.25 , respectively. There were no options exercised during fiscal 2017 . The aggregate intrinsic value of options exercised during fiscal 2016 was less than $0.01 million . There were no options exercised during fiscal 2015 . As of February 3, 2018 , there was approximately $0.8 million of total unrecognized compensation expense related to nonvested stock options granted, which is expected to be recognized over a weighted average period of approximately 1.50 years . During fiscal 2017 , the Company made awards of performance-based non-qualified stock options to a limited number of employees, which stock options vest, in whole or in part, on the vesting date if the operating income threshold under the Stock Option Award agreement is met or exceeded. In March 2018, all of the awards of non-qualified stock options were forfeited as the Company failed to achieve the threshold operating income goal. Stock-Based Compensation Activity — Restricted Stock The following table presents a summary of restricted stock activity for fiscal 2017 : Number of Shares Weighted Average Aggregate Nonvested, beginning of period 554,744 $ 1.91 Granted 250,000 1.34 Vested (215,697 ) 2.36 Forfeited (44,114 ) 1.84 Nonvested, end of period 544,933 1.48 $ 676 The weighted average fair value for restricted stock granted during fiscal 2017 and fiscal 2016 was $1.34 and $1.73 , respectively. The total fair value of restricted stock vested during fiscal 2017 and fiscal 2016 was approximately $0.7 million and $0.7 million , respectively. The aggregate intrinsic value of restricted stock vested during fiscal 2017 and fiscal 2016 was approximately $0.3 million and $0.2 million , respectively. As of February 3, 2018 , there was approximately $0.4 million of unrecognized stock-based compensation expense related to nonvested restricted stock awards, which is expected to be recognized over a weighted average period of approximately 0.93 years . Other Stock-Based Awards During fiscal 2014, the Company made awards of performance-based restricted stock units to a limited number of executive-level employees which entitles these employees to receive a specified number of shares of the Company’s common stock on vesting dates, provided that cumulative two -year and/or three -year targets are achieved. The cumulative targets involve operating margin, net sales growth and total stockholder return versus a specified peer group. Management estimates the fair value of performance share awards based on the market price of the underlying stock on the date of grant for net sales growth and operating margin targets. The Company utilized a Monte Carlo simulation model to determine the fair value of the performance shares based on total stockholder return. In March 2017, the Company granted approximately 12,000 shares, net of shares used for payroll tax withholdings, for achieving a portion of the three -year award. During fiscal 2017, as part of the Annual Incentive Plan, the Company made awards of performance-based non-qualified stock options to a limited number of executive-level employees which entitles these employees to receive the option to purchase a specified number of shares of the Company's common stock at the specified option price, provided that the performance criteria are met. This performance criteria involves meeting the designated threshold for operating income. The actual number of options in the aggregate issued on the vesting dates could range from zero to approximately 619,500 shares, depending upon actual performance achieved. The weighted average fair value of the options upon the grant date was $0.73 . During fiscal 2017, as part of the Company's Long-Term Incentive Plan, the Company made awards of non-qualified stock options to a limited number of executive-level employees which entitles these employees to receive the option to purchase a specified number of shares of the Company's common stock at the specified option price. The actual number of options issued on the vesting dates could range from zero to 735,300 shares. The weighted average fair value of the options upon the grant date was $0.74 . Employee Inducement Awards In connection with the appointment of Joel Waller as interim President and Chief Executive Officer (“CEO”) effective January 17, 2017, the Company granted to Mr. Waller employee inducement equity awards, including 200,000 shares of performance-based, restricted common stock. One tranche of 100,000 shares will vest if, on any date prior to the "Vesting Date" (as defined in the award agreement), the Company’s common stock has a closing price equal to or greater than $3.00 on the NYSE, and the second tranche of 100,000 shares will vest if, on any date prior to the Vesting Date, the Company’s common stock has a closing price equal to or greater than $4.00 on the NYSE. If a threshold is not met, the tranche of shares of restricted stock subject to such threshold will be forfeited. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Tax Cuts and Jobs Act ("the Act") was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35% to 21% as of January 1, 2018. The income tax effects of the Act required the remeasurement of our deferred tax assets and liabilities in accordance ASC Topic 740. The Securities and Exchange Commission ('SEC') staff issued Staff Accounting Bulletin No. 118 ('SAB 118') that allows companies to record provisional estimates of the impacts of the Act during a measurement period which is similar to the measurement period of up to one year from the enactment which is similar to the measurement period used when accounting for business combinations. The Company has estimated the effects of the Act, which have been reflected in our 2017 financial statements. The phase-in of the lower corporate tax rate has resulted in a blended rate of 33.8% for fiscal 2017, as compared to the previous 35%. At February 3, 2018 we have not fully completed our accounting for the tax effects of enactment of the Act; however, we have made a reasonable estimate of the effects on our existing deferred tax balances and valuation allowances. We remeasured U.S. deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future. The provisional net income tax expense recognized was zero , and is comprised of a tax expense of $20.7 million related to the effects of existing deferred tax asset balances and an offsetting tax benefit of $20.7 million which represents tax effects to existing valuation allowances. The Act has eliminated the corporate Alternative Minimum Tax (AMT) and deemed accumulated AMT credits to be fully refundable by the year 2022. As of January 28, 2017 accumulated AMT tax credits totaled $0.4 million of which we now expect to be refunded. The provision for income taxes consisted of the following for the fiscal periods identified below (in thousands): Fiscal 2017 Fiscal 2016 Fiscal 2015 (53 weeks) (52 weeks) (52 weeks) Current: Federal tax benefit $ (439 ) $ — $ — State tax (benefit) expense (59 ) (269 ) 172 Current tax (benefit) expense (498 ) (269 ) 172 Deferred tax (benefit) expense (275 ) 72 37,543 Income tax (benefit) provision $ (773 ) $ (197 ) $ 37,715 The following presents a reconciliation of income tax computed at the U.S. statutory rate to the effective income tax rate for the fiscal periods ended: February 3, 2018 January 28, 2017 January 30, 2016 Federal income tax at statutory rate 33.8 % 35.0 % 35.0 % State income tax, net of federal benefit 1.4 1.9 3.1 Change in valuation allowance 56.7 (36.1 ) (373.0 ) Reserve for unrecognized tax benefits 0.4 1.3 (0.4 ) Officer's compensation 1.3 — — Impact of tax rate change on deferred taxes (89.7 ) — — Tax credits — (0.5 ) 4.8 Other (0.5 ) (0.5 ) (1.0 ) Effective income tax rate 3.4 % 1.1 % (331.5 )% Deferred income taxes are provided for temporary differences between the basis of assets and liabilities for financial reporting purposes and income tax purposes. Significant components of the Company's deferred income tax assets and liabilities are as follows (in thousands): February 3, 2018 January 28, 2017 Deferred tax assets: Accrued Friendship Rewards loyalty liability $ 773 $ 1,283 Accrued gift card liability 495 599 Merchandise inventories 845 1,083 Deferred rent and deferred lease incentives 4,147 7,049 Stock-based compensation expense 769 2,357 Net operating loss carryforwards 30,550 36,565 Contribution carryforwards 226 249 Tax credit carryforwards 766 1,186 Other accrued liabilities 1,152 2,837 Total deferred tax assets 39,723 53,208 Less: Valuation allowance (37,555 ) (48,549 ) Deferred tax assets, net of valuation allowance 2,168 4,659 Deferred tax liabilities: Depreciation and amortization (1,235 ) (3,879 ) Other (336 ) (459 ) Total deferred tax liabilities (1,571 ) (4,338 ) Net deferred tax assets $ 597 $ 321 Deferred income tax assets represent potential future income tax benefits. Realization of these assets is ultimately dependent upon future taxable income. ASC 740 Income Taxes requires that deferred tax assets be reduced by a valuation allowance if, based on all available evidence, it is considered more likely than not that some or all of the recorded deferred tax assets will not be realized in a future period. Forming a conclusion that a valuation allowance is not needed is difficult when negative evidence such as cumulative losses exists. Based on available objective evidence and cumulative losses, management believes it is more likely than not that the deferred tax assets are not recognizable and will not be recognized until the Company has sufficient taxable income. Accordingly, the net deferred tax assets with the exception of certain deferred state benefits, have been offset by a valuation allowance. The valuation allowance decreased by $11.0 million and increased by $6.5 million during the years ended February 3, 2018 and January 28, 2017, respectively. The decrease in the valuation allowance in the current year is a result of the decrease in Federal tax rate under the Act. The valuation allowance does not have any impact on cash and does not prevent the Company from using the deferred tax assets in future periods when profits are realized. As of February 3, 2018 , the Company has federal and state net operating loss carryforwards which will reduce future taxable income. Approximately $26.1 million in net federal tax benefits are available from these federal loss carryforwards of approximately $124.2 million , and an additional $0.8 million is available in net federal tax credit carryforwards. We adopted ASU 2016-09 in fiscal 2017 . As a result of this adoption, Federal net operating losses on the balance sheet now reflect carry forwards on the tax return, as there is no longer a prohibition against net operating losses related to excess benefits of stock compensation. This adjustment resulted in a $1.7 million increase to the Federal net operating loss in fiscal 2017. The state loss carry forwards will result in net state tax benefits of approximately $4.5 million . The federal net operating loss carryovers will expire in October 2032 and beyond. The Company has analyzed equity ownership changes and determined its net operating losses will not be limited under IRC Section 382. The state net operating loss carryforwards will expire in November 2018 and beyond. Additionally, the Company has charitable contribution carryforwards that will expire in 2018 and beyond. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): Balance at January 31, 2015 $ 876 Additions based on tax positions related to the current year 329 Additions for tax positions of previous years 16 Reductions for tax positions of previous years (70 ) Reductions for tax positions of previous years due to lapse of applicable statute of limitations (42 ) Balance at January 30, 2016 1,109 Additions based on tax positions related to the current year 108 Additions for tax positions of previous years 143 Reductions for tax positions of previous years — Reductions for tax positions of previous years due to lapse of applicable statute of limitations (327 ) Balance at January 28, 2017 1,033 Additions based on tax positions related to the current year 55 Additions for tax positions of previous years — Reductions for tax positions of previous years (300 ) Reductions for tax positions of previous years due to lapse of applicable statute of limitations (161 ) Balance at February 3, 2018 $ 627 The Company's liability for unrecognized tax benefits is recorded within other non-current liabilities. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of February 3, 2018 and January 28, 2017 were $0.3 million and $0.4 million , respectively. Interest and penalties related to unrecognized tax benefits of approximately $27 thousand , $39 thousand and $64 thousand were recognized as components of income tax expense in fiscal 2017 , fiscal 2016 and fiscal 2015 , respectively. At February 3, 2018 and January 28, 2017 , approximately $0.1 million and $0.1 million , respectively, were accrued for the potential payment of interest and penalties. The Company and its subsidiaries are subject to U.S. federal income taxes and the income tax obligations of various state and local jurisdictions. In April 2015, the Company settled the IRS examination of the fiscal 2011 tax year. In March 2017, the Company settled the IRS examination of the Fiscal 2013 tax year. Both settlements were related to certain issues which the Company had previously reflected net of tax within deferred tax assets. The settlements did not result in any cash payments nor any impact to tax expense. Periods after fiscal 2013 remain subject to examination by the Internal Revenue Service. With few exceptions, the Company is not subject to state income tax examination by tax authorities for taxable years prior to fiscal 2012. As of February 3, 2018 , the Company had no other ongoing audits and does not expect the liability for unrecognized tax benefits to significantly increase or decrease in the next twelve months. |
Earnings Per Share ("EPS")
Earnings Per Share ("EPS") | 12 Months Ended |
Feb. 03, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share (EPS) | Earnings Per Share ("EPS") The calculation of EPS shown below excludes the income attributable to participating securities from the numerator. Fiscal 2017 Fiscal 2016 Fiscal 2015 Numerator (in thousands) : Net loss attributable to Christopher & Banks Corporation $ (22,024 ) $ (17,783 ) $ (49,094 ) Income allocated to participating securities — — — Net loss available to common stockholders $ (22,024 ) $ (17,783 ) $ (49,094 ) Denominator (in thousands) : Weighted average common shares outstanding - basic 37,212 37,016 36,886 Dilutive shares — — — Weighted average common and common equivalent shares outstanding - diluted 37,212 37,016 36,886 Net loss per common share: Basic $ (0.59 ) $ (0.48 ) $ (1.33 ) Diluted $ (0.59 ) $ (0.48 ) $ (1.33 ) Total stock options of approximately 2.9 million , 3.2 million and 2.3 million were excluded from the shares used in the computation of diluted earnings per share for fiscal 2017 , fiscal 2016 and fiscal 2015 , respectively, as they were anti-dilutive. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Feb. 03, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets that are Measured at Fair Value on a Non-recurring Basis: The following table summarizes certain information for non-financial assets for the fiscal years ended February 3, 2018 and January 28, 2017 , that are measured at fair value on a non-recurring basis in periods subsequent to an initial recognition period. The Company places amounts into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. Long-Lived Assets Held and Used (in thousands) : Fiscal 2017 Fiscal 2016 Carrying value $ 318 $ 877 Fair value measured using Level 3 inputs $ — $ 91 Impairment charge $ 318 $ 786 All of the fair value measurements included in the table above were based on significant unobservable inputs (Level 3). The Company determines fair value for measuring assets on a non-recurring basis using a discounted cash flow approach as discussed in Note 1 - Nature of Business and Significant Accounting Policies . In determining future cash flows, the Company uses its best estimate of future operating results, which requires the use of significant estimates and assumptions, including estimated sales, merchandise margin and expense levels, and the selection of an appropriate discount rate; therefore, differences in the estimates or assumptions could produce significantly different results. General economic uncertainty impacting the retail industry and continuation of recent trends in company performance makes it reasonably possible that additional long-lived asset impairments could be identified and recorded in future periods. Fixed asset fair values were derived using a discounted cash flow ("DCF") model to estimate the present value of net cash flows that the asset or asset group is expected to generate. The key inputs to the DCF model generally included our forecasts of net cash generated from revenue, expenses and other significant cash outflows, such as capital expenditures, as well as an appropriate discount rate. In the case of assets for which the impairment was the result of restructuring activities, no future cash flows have been assumed as the assets will cease to be used and expected sale values are nominal. |
Employee Benefit Plans and Empl
Employee Benefit Plans and Employment Agreements | 12 Months Ended |
Feb. 03, 2018 | |
Defined Benefit Plan, Expected Future Employer Contributions [Abstract] | |
Employee Benefit Plans and Employment Agreements | Employee Benefit Plans and Employment Agreements 401(k) Plan The Company has established a defined contribution plan qualified under Section 401(k) of the Internal Revenue Code for the benefit of all employees who meet certain eligibility requirements, which are primarily age, length of service and hours of service. The plan allows eligible employees to invest from 1% to 60% of their compensation, subject to dollar limits as established by the federal government. The plan allows for discretionary Company matching contributions. The Company made matching contributions totaling approximately $0.5 million , $0.6 million and $0.5 million in fiscal 2017 , fiscal 2016 and fiscal 2015 , respectively. The Company does not offer any other post-retirement, post-employment or pension benefits to directors or employees. Severance Agreements On January 17, 2017, the Company announced the departure of LuAnn Via, the Company’s President and Chief Executive Officer, and a director, from all of her officer and director positions, effective as of the opening of business on January 17, 2017. We incurred a pre-tax severance charge of approximately $ 0.9 million in connection with Ms. Via’s departure. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Feb. 03, 2018 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments The Company leases its store locations and vehicles under operating leases. The store lease terms, including rental period, renewal options, escalation clauses and rent as a percentage of sales, vary among the leases. Most store leases require the Company to pay real estate taxes and common area maintenance charges. Total rental expense for all leases was as follows for the fiscal periods ended (in thousands): Fiscal 2017 Fiscal 2016 Fiscal 2015 Minimum rent $ 39,903 $ 39,384 $ 37,723 Contingent rent 790 1,120 2,200 Maintenance, taxes and other 16,483 18,688 19,159 Amortization of deferred lease incentives (1,792 ) (1,908 ) (2,105 ) Total rent expense $ 55,384 $ 57,284 $ 56,977 Future minimum rental payments as of February 3, 2018 , and the estimated timing and effect that such obligations are expected to have on the Company’s liquidity and cash flows for operating leases are as follows (in thousands): Payments Due by Period Contractual Obligations Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022 Thereafter Total Retail store facility operating leases $ 35,628 $ 29,638 $ 22,483 $ 18,987 $ 16,337 $ 39,720 $ 162,793 Vehicle operating leases 208 98 24 — — — 330 Total obligations $ 35,836 $ 29,736 $ 22,507 $ 18,987 $ 16,337 $ 39,720 $ 163,123 |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Feb. 03, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings We are subject, from time to time, to various claims, lawsuits or actions that arise in the ordinary course of business. We accrue for loss contingencies associated with outstanding litigation or legal claims for which management has determined it is probable that a loss contingency exists and the amount of the loss can be reasonably estimated. If we determine an unfavorable outcome is not probable or reasonably estimable, we do not accrue a potential loss contingency. The ultimate resolution of matters can be inherently uncertain and for some matters, we may be unable to predict the ultimate outcome, determine whether a liability has been incurred or make an estimate of the reasonably possible liability that could result from an unfavorable outcome because of these uncertainties. We do not, however, currently believe that the resolution of any pending matter will have a material adverse effect on its financial position, results of operations or liquidity. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Feb. 03, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Fiscal 2017 Quarters (1) (in thousands, except per share data) First Second Third Fourth Net sales $ 88,556 $ 86,618 $ 98,468 $ 92,265 Gross profit 30,538 24,628 33,239 25,102 Net loss (3,688 ) (7,889 ) (1,622 ) (8,825 ) Net loss per share data: Basic $ (0.10 ) $ (0.21 ) $ (0.05 ) $ (0.23 ) Diluted $ (0.10 ) $ (0.21 ) $ (0.05 ) $ (0.23 ) Fiscal 2016 Quarters (1) (in thousands, except per share data) First Second Third Fourth Net sales $ 100,033 $ 89,923 $ 106,668 $ 84,980 Gross profit 37,712 30,149 39,221 21,041 Net (loss) income (167 ) (3,884 ) 3,493 (17,224 ) Net (loss) income per share data: Basic $ — $ (0.11 ) $ 0.09 $ (0.46 ) Diluted $ — $ (0.11 ) $ 0.09 $ (0.46 ) __________________________________________ (1) The summation of quarterly per share data may not equate to the calculation for the full fiscal year as quarterly calculations are performed on a discrete basis. |
Nature of Business and Signif21
Nature of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 03, 2018 | |
Accounting Policies [Abstract] | |
Fiscal year and basis of presentation | Fiscal year and basis of presentation The Company follows the standard fiscal year of the retail industry, which is a fifty-two or fifty-three week period ending on the Saturday closest to January 31, and is designated by the calendar year in which the fiscal year commences. The fiscal year ended February 3, 2018 ("fiscal 2017 ") consisted of fifty-three weeks, while the fiscal years ended January 28, 2017 ("fiscal 2016 "), and January 30, 2016 ("fiscal 2015 ") each consisted of fifty-two weeks. The consolidated financial statements include the accounts of Christopher & Banks Corporation and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during reporting periods. As a result, actual results could differ because of the use of these estimates and assumptions. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand and in banks and investments purchased with an original maturity of ninety days or less. |
Accounts Receivable | Accounts Receivable Accounts receivable consist primarily of amounts receivable from customers and amounts due from landlords. Credit card receivables relate to amounts due from payment processing entities that are collected one to five days after the related sale transaction occurs. |
Inventory valuation | Inventory valuation Merchandise inventories are stated at the lower of cost or market utilizing the retail inventory method. The retail inventory method inherently requires management judgments and estimates, such as the amount and timing of permanent markdowns to clear unproductive or slow-moving inventory, which may impact the ending inventory valuation as well as gross margins. Permanent markdowns designated for clearance activity are recorded when the utility of the inventory has diminished. Factors considered in the determination of permanent markdowns include current and anticipated demand, customer preferences, age of the merchandise and fashion trends. When a decision is made to permanently mark down merchandise, the resulting gross profit reduction is recognized. Physical inventories are generally taken annually, and inventory records are adjusted accordingly, resulting in the recording of actual shrinkage. Physical inventories are taken at all store locations approximately three weeks before the end of the fiscal year. Shrinkage is estimated as a percentage of net sales at interim periods and for this approximate three-week period, based on historical shrinkage rates. |
Property, equipment and improvements, net | Property, equipment and improvements, net Property, equipment and improvements are initially recorded at cost. Property and equipment is depreciated on a straight-line basis over its estimated useful life as follows: Description Estimated Useful Lives Building and building improvements 25 years Computer hardware and software 3 to 5 years Equipment, furniture and fixtures 3 to 10 years Store leasehold improvements Shorter of the useful life or term of the lease, typically 10 years Repairs and maintenance which do not extend an asset’s useful life are expensed as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for that period. |
Long-lived assets | Long-lived assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. When evaluating long-lived assets for potential impairment, we first compare the carrying value of the asset to the asset's estimated future cash flows (undiscounted and without interest charges). If the sum of the estimated future cash flows is less than the carrying value of the asset, we calculate an impairment loss. The impairment loss calculation compares the carrying value of the asset to the asset's estimated fair value, which is typically based on estimated discounted future cash flows. We recognize an impairment loss if the amount of the asset's carrying value exceeds the asset's estimated fair value. If we recognize an impairment loss, the adjusted carrying amount of the asset becomes its new cost basis. For a depreciable long-lived asset, the new cost basis is depreciated over the remaining useful life of that asset. When reviewing long-lived assets for impairment, we group long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For long-lived assets deployed at store locations, we review for impairment at the individual store level. Our impairment loss calculations involve uncertainty because they require management to make assumptions and to apply judgment to estimate future cash flows and asset fair values, including estimating useful lives of the assets and selecting the discount rate that reflects the risk inherent in future cash flows. If actual results are not consistent with our estimates and assumptions used in estimating future cash flows and asset fair values, we may be exposed to losses that could be material. |
Revenue recognition | Revenue recognition Sales are recognized at the point of purchase when a customer takes possession of the merchandise and pays for the purchase with cash, credit card, debit card or gift card. The Company records eCommerce revenue upon the estimated date the customer receives the merchandise. Shipping and handling revenues are included in net sales. Sales are recognized net of a sales return reserve, which is based on historical sales return data. Sales taxes collected from customers are remitted to the appropriate taxing jurisdictions and are excluded from net sales. Gift cards are recorded as a liability when issued and until they are redeemed, at which point a sale is recorded. Unredeemed gift cards (“gift card breakage”) is recognized as a reduction of merchandise, buying and occupancy costs when the likelihood of a gift card being redeemed by a customer in the future is deemed remote and the Company determines that there is no legal obligation to remit the value of the unredeemed gift card to any state or local jurisdiction as unclaimed or abandoned property. The Company utilizes historical redemption patterns in order to estimate the rate and timing of breakage associated with gift cards. Based on historical redemption patterns, we currently recognize breakage for a portion of the gift card balances that remain outstanding following 36 months of issuance. |
Vendor allowances | Vendor allowances At certain times the Company receives allowances or credits from its merchandise vendors primarily related to goods that do not meet our quality standards. These allowances or credits are reflected as a reduction of merchandise inventory in the period they are received. The majority of merchandise is produced exclusively for the Company. Accordingly, the Company does not enter into any arrangements with vendors where payments or other consideration might be received in connection with the purchase or promotion of a vendor’s products such as buy-down agreements or cooperative advertising programs. |
Merchandise, buying and occupancy costs | Merchandise, buying and occupancy costs Merchandise, buying and occupancy costs include the cost of merchandise, markdowns, shrink, freight, shipping and handling charges, buyer and distribution center salaries, buyer travel, rent and other occupancy related costs, various merchandise design and development costs, miscellaneous merchandise-related expenses and other costs related to the Company's distribution network. Merchandise, buying and occupancy costs do not include any depreciation or amortization expense. |
Selling, general and administrative expenses | Selling, general and administrative expenses Selling, general and administrative expenses include salaries, with the exception of buyer and distribution center salaries, other employee benefits, marketing, store supplies, payment processing fees, information technology-related costs, insurance, professional services, non-buyer travel and miscellaneous other selling and administrative related expenses. Selling, general and administrative expenses do not include any depreciation or amortization expense. |
Rent expense, deferred rent obligations and deferred lease incentives | Rent expense, deferred rent obligations and deferred lease incentives The Company leases all of its store locations under operating leases. Most of these lease agreements contain tenant improvement allowances, funded by landlord cash incentives or rent abatements, which are recorded as a deferred lease incentive liability and amortized as a reduction of rent expense over the term of the lease. For purposes of recognizing landlord incentives and minimum rental expense, the Company utilizes the date that it obtains the legal right to use and control the leased space, which is generally when the Company enters the space and begins to make improvements in preparation for opening a new store location. Certain lease agreements contain rent escalation clauses which provide for scheduled rent increases during the lease term or for rental payments commencing at a date other than the date of initial occupancy. Such escalating rent expense is recorded on a straight-line basis over the lease term, not including any renewal option periods, and the difference between the recognized rent expense and amounts payable under the lease are recorded as deferred rent obligations. The Company's leases may also provide for contingent rents, which are determined as a percentage of sales in excess of specified levels. When specified levels have been achieved or when management determines that achieving the specified levels during the fiscal year is probable, the Company records a current accrued liability along with the corresponding rent expense. A small portion of our leases contain renewal options that generally allow us to extend the lease for an additional five years . |
Advertising | Advertising Advertising costs are expensed as incurred and included in selling, general and administrative expenses. |
Customer loyalty program | Customer loyalty program The Company’s Friendship Rewards loyalty program grants customers the ability to accumulate points based on purchase activity. Once a Friendship Rewards member achieves a certain point level, the member earns award certificates that may be redeemed towards future merchandise purchases. Points are accrued as unearned revenue and recorded as a reduction of net sales and a current liability as they are accumulated by members and certificates are earned. The liability is recorded net of estimated breakage based on historical redemption patterns and trends. Revenue and the related cost of sales are recognized upon redemption of the reward certificates, which expire approximately six weeks after issuance . |
Private label credit card program | Private label credit card program During fiscal 2014 , the Company launched a private label credit card program with Comenity Bank which provides for the issuance of credit cards bearing the Christopher & Banks and C.J. Banks brands. The sponsoring bank manages and extends credit to the Company's customers and is the sole owner of the accounts receivable generated under the program. In April 2017, the Company entered into a second amendment to the private label credit card plan agreement. As part of the program, the Company received a signing bonus of approximately $2.0 million from Comenity Bank and also earns revenue based on card usage by its customers. The deferred signing bonus is included in other liabilities and is being recognized in net sales ratably over the term of the contract. The other revenue based on customer usage of the card is recognized in net sales in the periods in which the related customer transaction occurs. During fiscal 2017 , fiscal 2016 and fiscal 2015 , the Company recognized approximately $1.2 million , $0.8 million and $0.7 million , respectively, in net royalty revenue which is included in net sales. In addition, the sponsoring bank reimburses the Company for certain marketing expenditures related to the program, subject to an annual cap on the amount of reimbursable expenses. |
Lease termination costs | Lease termination costs Discounted liabilities for future lease costs and the fair value of related subleases of closed locations are recorded when the stores are closed prior to the expiration of the lease or execution of a lease termination agreement. In assessing the discounted liabilities for future costs of obligations related to closed stores, the Company makes assumptions regarding amounts of future subleases. If these assumptions or their related estimates change in the future, the Company may be required to record additional exit costs or reduce exit costs previously accrued. Actual settlements may vary substantially from recorded obligations. |
Fair value measurements | 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 an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value are categorized using defined hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair value measurements, as follows: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 – Inputs other than quoted prices included in Level 1 that are either directly or indirectly observable; and Level 3 – Unobservable inputs that are significant to the fair value of the asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Certain of the Company's financial assets and liabilities are recorded at their carrying amounts which approximate fair value, based on their short-term nature. These financial assets and liabilities include cash and cash equivalents, accounts receivable and accounts payable. The Company measures certain of its long-lived assets at fair value on a non-recurring basis. Long-lived asset impairment charges recorded during fiscal 2017 , fiscal 2016 fiscal and 2015 were measured at fair value using Level 3 inputs. |
Stock-based compensation | Stock-based compensation Stock-based compensation is calculated using the estimated fair value of stock options on the date of grant, the Company uses the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the Company to estimate key assumptions such as expected term, volatility, risk-free interest rates and dividend yield to determine the fair value of stock options, based on both historical information and management judgment regarding market factors and trends. The Company recognizes stock-based compensation expense on a straight-line basis over the corresponding vesting period of the entire award, net of estimated forfeiture rates. The Company estimates expected forfeitures of share-based awards at the grant date and recognizes compensation cost only for those awards expected to vest. In estimating expected forfeitures, the Company analyzes historical forfeiture and termination information and considers how future termination rates are expected to differ from historical termination rates. The Company ultimately adjusts this forfeiture assumption to actual forfeitures. Any changes in the forfeiture assumptions do not impact the total amount of expense ultimately recognized over the vesting period. Instead, different forfeiture assumptions only impact the timing of expense recognition over the vesting period. If the actual forfeitures differ from management estimates, additional adjustments to compensation expense are recorded. Restricted stock awards are generally subject to forfeiture if employment or service terminates prior to the lapse of the restrictions. In addition, certain restricted stock awards have performance-based vesting provisions and are subject to forfeiture, in whole or in part, if these performance conditions are not achieved. Management assesses, on an ongoing basis, the probability of whether the performance criteria will be achieved and, once it is deemed probable, compensation expense is recognized over the relevant performance period. For those awards not subject to performance criteria, the cost of the restricted stock awards is expensed, which is determined to be the fair market value of the shares at the date of grant, on a straight-line basis over the vesting period. Time-based grants of restricted stock participate in dividend payments to the extent dividends are declared and paid prior to vesting. |
Income taxes | Income taxes Income taxes are calculated using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future income taxes attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We record a valuation allowance against our deferred tax assets when it is more likely than not that some portion or all of our deferred tax assets will not be realized. In determining the need for a valuation allowance, management is required to make judgments regarding future income, taxable income and the potential effects of the mix of income or losses in jurisdictions in which we operate. Deferred tax assets and liabilities are measured using the tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of such change. |
Net loss per common share | Net loss per common share The Company utilizes the two-class method of calculating earnings per share (“EPS”) where nonvested share-based payment awards that contain non-forfeitable rights to receive dividends or dividend equivalents (whether paid or unpaid) are participating securities, and thus, are included in the two-class method of computing EPS. Participating securities include nonvested employee restricted stock awards with time-based vesting, which contain non-forfeitable rights to receive dividend payments. Basic EPS is computed based on the weighted average number of shares of common stock outstanding during the applicable period, while diluted EPS is computed based on the weighted average number of shares of common and common equivalent shares outstanding. |
Segment reporting | Segment reporting The Company reports its operations as one reportable segment, Retail Operations, which consists of one operating segment. The Company defines an operating segment on the same basis that it uses to evaluate performance and to allocate resources. The Company has also considered its organizational structure and design of its executive compensation programs. Therefore, the Company reports results as a single segment, which includes the operation of its retail stores, outlet stores, online purchases and mobile application. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance under Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers . ASU 2014-09 supersedes existing revenue recognition requirements and provides a new comprehensive revenue recognition model that requires entities to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers, Deferral of the Effective Date , which defers the effective date of the new revenue recognition standard by one year. As a result, ASU 2014-09 is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2017. We do not believe the adoption of this standard will have a material impact on our consolidated financial statements. The new revenue standard will require the Company to recognize gift card breakage proportional to actual gift card redemptions. We plan to adopt this ASU under the modified retrospective approach beginning in the first quarter of fiscal 2018 which includes a cumulative adjustment to retained earnings. Based on our current estimation, we do not anticipate this adjustment to retained earnings to exceed $2.0 million , primarily driven by the accelerated recognition of gift card breakage. We have finalized our conclusions regarding our revenue recognition policy and made all necessary updates to our internal controls over financial reporting. We are in the process of finalizing our disclosures under the enhanced requirements of the new standard. In February 2016, the FASB issued ASU No. 2016-02, Leases , which requires that lease arrangements longer than twelve months result in an entity recognizing an asset and liability. The updated guidance is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. We plan to adopt this ASU under the modified retrospective approach. We are currently evaluating the effect this guidance will have on our results of operations. We anticipate the ASU will have a material impact on our balance sheet, but the ASU is non-cash in nature and will not affect our cash position. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 addresses simplification of several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 was adopted in the current year on a prospective basis. The adoption of ASU 2016-09 did not have a material impact on the Company's consolidated financial statements mostly due to the impact of the tax valuation allowance. We reviewed all other recently issued accounting pronouncements and concluded they are either not applicable to our operations, or that no material effect is expected on our consolidated financial statements as a result of future adoption. |
Nature of Business and Signif22
Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Accounts Receivable | Accounts Receivable consisted of the following (in thousands): February 3, 2018 January 28, 2017 Credit card receivables $ 2,229 $ 1,900 Amounts due from landlords — 214 Other receivables 397 435 Total accounts receivable $ 2,626 $ 2,549 |
Schedule of Merchandise Inventories | Merchandise inventory consisted of the following (in thousands): February 3, 2018 January 28, 2017 Merchandise - in store/eCommerce $ 34,225 $ 28,584 Merchandise - in transit 7,136 8,250 Total merchandise inventories $ 41,361 $ 36,834 |
Schedule of Property and Equipment Estimated Useful Lives | Property and equipment is depreciated on a straight-line basis over its estimated useful life as follows: Description Estimated Useful Lives Building and building improvements 25 years Computer hardware and software 3 to 5 years Equipment, furniture and fixtures 3 to 10 years Store leasehold improvements Shorter of the useful life or term of the lease, typically 10 years Property, equipment and improvements, net consisted of the following (in thousands): Description February 3, 2018 January 28, 2017 Land $ 1,597 $ 1,597 Corporate office, distribution center and related building improvements 12,753 12,700 Store leasehold improvements 50,094 49,450 Store furniture and fixtures 70,447 69,598 Corporate office and distribution center furniture, fixtures and equipment 5,053 4,880 Computer and point of sale hardware and software 33,126 32,313 Construction in progress 1,275 1,321 Total property, equipment and improvements, gross 174,345 171,859 Less accumulated depreciation and amortization (126,572 ) (116,527 ) Total property, equipment and improvements, net $ 47,773 $ 55,332 |
Property, Equipment and Impro23
Property, Equipment and Improvements, Net (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment is depreciated on a straight-line basis over its estimated useful life as follows: Description Estimated Useful Lives Building and building improvements 25 years Computer hardware and software 3 to 5 years Equipment, furniture and fixtures 3 to 10 years Store leasehold improvements Shorter of the useful life or term of the lease, typically 10 years Property, equipment and improvements, net consisted of the following (in thousands): Description February 3, 2018 January 28, 2017 Land $ 1,597 $ 1,597 Corporate office, distribution center and related building improvements 12,753 12,700 Store leasehold improvements 50,094 49,450 Store furniture and fixtures 70,447 69,598 Corporate office and distribution center furniture, fixtures and equipment 5,053 4,880 Computer and point of sale hardware and software 33,126 32,313 Construction in progress 1,275 1,321 Total property, equipment and improvements, gross 174,345 171,859 Less accumulated depreciation and amortization (126,572 ) (116,527 ) Total property, equipment and improvements, net $ 47,773 $ 55,332 |
Accrued Liabilities and Other C
Accrued Liabilities and Other Current Liabilities (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities and Other Current Liabilities | Accrued liabilities and other current liabilities consisted of the following (in thousands): February 3, 2018 January 28, 2017 Gift card and store credit liabilities $ 6,931 $ 7,414 Accrued Friendship Rewards Loyalty Program liability 3,539 3,770 Accrued income, sales and other taxes payable 1,587 1,239 Accrued occupancy-related expenses 3,432 3,614 Sales return reserve 1,079 943 eCommerce obligations 3,824 3,190 Other accrued liabilities 5,809 6,256 Total accrued liabilities and other current liabilities $ 26,201 $ 26,426 |
Stockholder's Equity and Stoc25
Stockholder's Equity and Stock-Based Compensation (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Equity [Abstract] | |
Schedule of Assumptions Relating to Valuation of Stock Options | The table below shows the weighted average assumptions relating to the valuation of stock options granted during fiscal 2017 , fiscal 2016 and fiscal 2015 . Fiscal 2017 Fiscal 2016 Fiscal 2015 Expected dividend yield —% —% —% Expected volatility 76.65-84.94% 74.93-77.13% 68.62% Risk-free interest rate 1.66-2.05% 1.18-1.84% 1.73% Expected term 3.00-5.00 years 5.00 years 5.00 years |
Summary of Stock Option Activity | The following tables present a summary of stock option activity for fiscal 2017 : Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Life Outstanding, beginning of period 3,513,376 3.48 Granted 2,114,951 1.28 Exercised — — Canceled - Vested (1,648,450 ) 3.94 Canceled - Nonvested (Forfeited) (436,051 ) 1.56 Outstanding, end of period 3,543,826 $ 2.19 $ — 5.06 years Exercisable, end of period 1,312,076 $ 3.47 $ — 4.35 years |
Summary of Nonvested Share Activity | Number of Shares Weighted Average Grant Date Fair Value Nonvested, beginning of period 1,142,369 $ 0.80 Granted 2,114,951 0.74 Vested (589,519 ) 0.84 Forfeited (436,051 ) 0.75 Nonvested, end of period 2,231,750 0.74 |
Summary of Nonvested Restricted Stock Activity | The following table presents a summary of restricted stock activity for fiscal 2017 : Number of Shares Weighted Average Aggregate Nonvested, beginning of period 554,744 $ 1.91 Granted 250,000 1.34 Vested (215,697 ) 2.36 Forfeited (44,114 ) 1.84 Nonvested, end of period 544,933 1.48 $ 676 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes consisted of the following for the fiscal periods identified below (in thousands): Fiscal 2017 Fiscal 2016 Fiscal 2015 (53 weeks) (52 weeks) (52 weeks) Current: Federal tax benefit $ (439 ) $ — $ — State tax (benefit) expense (59 ) (269 ) 172 Current tax (benefit) expense (498 ) (269 ) 172 Deferred tax (benefit) expense (275 ) 72 37,543 Income tax (benefit) provision $ (773 ) $ (197 ) $ 37,715 |
Schedule of Effective Income Tax Rate Reconciliation | The following presents a reconciliation of income tax computed at the U.S. statutory rate to the effective income tax rate for the fiscal periods ended: February 3, 2018 January 28, 2017 January 30, 2016 Federal income tax at statutory rate 33.8 % 35.0 % 35.0 % State income tax, net of federal benefit 1.4 1.9 3.1 Change in valuation allowance 56.7 (36.1 ) (373.0 ) Reserve for unrecognized tax benefits 0.4 1.3 (0.4 ) Officer's compensation 1.3 — — Impact of tax rate change on deferred taxes (89.7 ) — — Tax credits — (0.5 ) 4.8 Other (0.5 ) (0.5 ) (1.0 ) Effective income tax rate 3.4 % 1.1 % (331.5 )% |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company's deferred income tax assets and liabilities are as follows (in thousands): February 3, 2018 January 28, 2017 Deferred tax assets: Accrued Friendship Rewards loyalty liability $ 773 $ 1,283 Accrued gift card liability 495 599 Merchandise inventories 845 1,083 Deferred rent and deferred lease incentives 4,147 7,049 Stock-based compensation expense 769 2,357 Net operating loss carryforwards 30,550 36,565 Contribution carryforwards 226 249 Tax credit carryforwards 766 1,186 Other accrued liabilities 1,152 2,837 Total deferred tax assets 39,723 53,208 Less: Valuation allowance (37,555 ) (48,549 ) Deferred tax assets, net of valuation allowance 2,168 4,659 Deferred tax liabilities: Depreciation and amortization (1,235 ) (3,879 ) Other (336 ) (459 ) Total deferred tax liabilities (1,571 ) (4,338 ) Net deferred tax assets $ 597 $ 321 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): Balance at January 31, 2015 $ 876 Additions based on tax positions related to the current year 329 Additions for tax positions of previous years 16 Reductions for tax positions of previous years (70 ) Reductions for tax positions of previous years due to lapse of applicable statute of limitations (42 ) Balance at January 30, 2016 1,109 Additions based on tax positions related to the current year 108 Additions for tax positions of previous years 143 Reductions for tax positions of previous years — Reductions for tax positions of previous years due to lapse of applicable statute of limitations (327 ) Balance at January 28, 2017 1,033 Additions based on tax positions related to the current year 55 Additions for tax positions of previous years — Reductions for tax positions of previous years (300 ) Reductions for tax positions of previous years due to lapse of applicable statute of limitations (161 ) Balance at February 3, 2018 $ 627 |
Earnings Per Share ("EPS") (Tab
Earnings Per Share ("EPS") (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of EPS | The calculation of EPS shown below excludes the income attributable to participating securities from the numerator. Fiscal 2017 Fiscal 2016 Fiscal 2015 Numerator (in thousands) : Net loss attributable to Christopher & Banks Corporation $ (22,024 ) $ (17,783 ) $ (49,094 ) Income allocated to participating securities — — — Net loss available to common stockholders $ (22,024 ) $ (17,783 ) $ (49,094 ) Denominator (in thousands) : Weighted average common shares outstanding - basic 37,212 37,016 36,886 Dilutive shares — — — Weighted average common and common equivalent shares outstanding - diluted 37,212 37,016 36,886 Net loss per common share: Basic $ (0.59 ) $ (0.48 ) $ (1.33 ) Diluted $ (0.59 ) $ (0.48 ) $ (1.33 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on a Non-Recurring Basis | The following table summarizes certain information for non-financial assets for the fiscal years ended February 3, 2018 and January 28, 2017 , that are measured at fair value on a non-recurring basis in periods subsequent to an initial recognition period. The Company places amounts into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. Long-Lived Assets Held and Used (in thousands) : Fiscal 2017 Fiscal 2016 Carrying value $ 318 $ 877 Fair value measured using Level 3 inputs $ — $ 91 Impairment charge $ 318 $ 786 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Leases [Abstract] | |
Schedule of Rent Expense | Total rental expense for all leases was as follows for the fiscal periods ended (in thousands): Fiscal 2017 Fiscal 2016 Fiscal 2015 Minimum rent $ 39,903 $ 39,384 $ 37,723 Contingent rent 790 1,120 2,200 Maintenance, taxes and other 16,483 18,688 19,159 Amortization of deferred lease incentives (1,792 ) (1,908 ) (2,105 ) Total rent expense $ 55,384 $ 57,284 $ 56,977 |
Schedule of Future Minimum Rental Payments | Future minimum rental payments as of February 3, 2018 , and the estimated timing and effect that such obligations are expected to have on the Company’s liquidity and cash flows for operating leases are as follows (in thousands): Payments Due by Period Contractual Obligations Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022 Thereafter Total Retail store facility operating leases $ 35,628 $ 29,638 $ 22,483 $ 18,987 $ 16,337 $ 39,720 $ 162,793 Vehicle operating leases 208 98 24 — — — 330 Total obligations $ 35,836 $ 29,736 $ 22,507 $ 18,987 $ 16,337 $ 39,720 $ 163,123 |
Quarterly Financial Data (Una30
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Data | Fiscal 2017 Quarters (1) (in thousands, except per share data) First Second Third Fourth Net sales $ 88,556 $ 86,618 $ 98,468 $ 92,265 Gross profit 30,538 24,628 33,239 25,102 Net loss (3,688 ) (7,889 ) (1,622 ) (8,825 ) Net loss per share data: Basic $ (0.10 ) $ (0.21 ) $ (0.05 ) $ (0.23 ) Diluted $ (0.10 ) $ (0.21 ) $ (0.05 ) $ (0.23 ) Fiscal 2016 Quarters (1) (in thousands, except per share data) First Second Third Fourth Net sales $ 100,033 $ 89,923 $ 106,668 $ 84,980 Gross profit 37,712 30,149 39,221 21,041 Net (loss) income (167 ) (3,884 ) 3,493 (17,224 ) Net (loss) income per share data: Basic $ — $ (0.11 ) $ 0.09 $ (0.46 ) Diluted $ — $ (0.11 ) $ 0.09 $ (0.46 ) __________________________________________ (1) The summation of quarterly per share data may not equate to the calculation for the full fiscal year as quarterly calculations are performed on a discrete basis. |
Nature of Business and Signif31
Nature of Business and Significant Accounting Policies - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 29, 2017USD ($) | Feb. 03, 2018USD ($)storesegment | Jan. 28, 2017USD ($)store | Jan. 30, 2016USD ($)store | May 05, 2018USD ($) | |
Accounting Policies [Abstract] | |||||
Number of stores | store | 463 | 484 | 518 | ||
Lease extension period | 5 years | ||||
Advertising expense | $ 8,400 | $ 8,500 | $ 7,300 | ||
Accrued Friendship Rewards Loyalty Program liability | 3,539 | 3,770 | |||
Signing bonus received | $ 2,000 | ||||
Royalty revenue | $ 1,200 | $ 800 | $ 700 | ||
Number of reportable segments | segment | 1 | ||||
Number of operating segments | segment | 1 | ||||
Scenario, Forecast | ASU 2014-09 | Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect of adoption of ASU on retained earnings (not to exceed) | $ 2,000 |
Nature of Business and Signif32
Nature of Business and Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 03, 2018 | Jan. 28, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Credit card receivables | $ 2,229 | $ 1,900 |
Amounts due from landlords | 0 | 214 |
Other receivables | 397 | 435 |
Total accounts receivable | $ 2,626 | $ 2,549 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collection period (in days) | 1 day | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collection period (in days) | 5 days |
Nature of Business and Signif33
Nature of Business and Significant Accounting Policies - Merchandise Inventories (Details) - USD ($) $ in Thousands | Feb. 03, 2018 | Jan. 28, 2017 |
Inventory Disclosure [Abstract] | ||
Merchandise - in store/eCommerce | $ 34,225 | $ 28,584 |
Merchandise - in transit | 7,136 | 8,250 |
Total merchandise inventories | $ 41,361 | $ 36,834 |
Nature of Business and Signif34
Nature of Business and Significant Accounting Policies - Property and equipment estimated useful lives (Details) | 12 Months Ended |
Feb. 03, 2018 | |
Building and building improvements | |
Property, equipment and improvements | |
Estimated Useful Lives | 25 years |
Computer hardware and software | Minimum | |
Property, equipment and improvements | |
Estimated Useful Lives | 3 years |
Computer hardware and software | Maximum | |
Property, equipment and improvements | |
Estimated Useful Lives | 5 years |
Equipment, furniture and fixtures | Minimum | |
Property, equipment and improvements | |
Estimated Useful Lives | 3 years |
Equipment, furniture and fixtures | Maximum | |
Property, equipment and improvements | |
Estimated Useful Lives | 10 years |
Store leasehold improvements | |
Property, equipment and improvements | |
Estimated Useful Lives | 10 years |
Property, Equipment and Impro35
Property, Equipment and Improvements, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Property, equipment and improvements | |||
Total property, equipment and improvements, gross | $ 174,345 | $ 171,859 | |
Less accumulated depreciation and amortization | (126,572) | (116,527) | |
Total property, equipment and improvements, net | 47,773 | 55,332 | |
Impairment charge | 318 | 786 | $ 281 |
Land | |||
Property, equipment and improvements | |||
Total property, equipment and improvements, gross | 1,597 | 1,597 | |
Corporate office, distribution center and related building improvements | |||
Property, equipment and improvements | |||
Total property, equipment and improvements, gross | 12,753 | 12,700 | |
Store leasehold improvements | |||
Property, equipment and improvements | |||
Total property, equipment and improvements, gross | 50,094 | 49,450 | |
Store furniture and fixtures | |||
Property, equipment and improvements | |||
Total property, equipment and improvements, gross | 70,447 | 69,598 | |
Corporate office and distribution center furniture, fixtures and equipment | |||
Property, equipment and improvements | |||
Total property, equipment and improvements, gross | 5,053 | 4,880 | |
Computer and point of sale hardware and software | |||
Property, equipment and improvements | |||
Total property, equipment and improvements, gross | 33,126 | 32,313 | |
Construction in progress | |||
Property, equipment and improvements | |||
Total property, equipment and improvements, gross | $ 1,275 | $ 1,321 |
Accrued Liabilities and Other36
Accrued Liabilities and Other Current Liabilities (Details) - USD ($) $ in Thousands | Feb. 03, 2018 | Jan. 28, 2017 |
Accrued Liabilities, Current [Abstract] | ||
Gift card and store credit liabilities | $ 6,931 | $ 7,414 |
Accrued Friendship Rewards Loyalty Program liability | 3,539 | 3,770 |
Accrued income, sales and other taxes payable | 1,587 | 1,239 |
Accrued occupancy-related expenses | 3,432 | 3,614 |
Sales return reserve | 1,079 | 943 |
eCommerce obligations | 3,824 | 3,190 |
Other accrued liabilities | 5,809 | 6,256 |
Total accrued liabilities and other current liabilities | $ 26,201 | $ 26,426 |
Credit Facility (Details)
Credit Facility (Details) - Wells Fargo Bank, N.A. - USD ($) | Sep. 08, 2014 | Feb. 03, 2018 | Jan. 28, 2017 | Sep. 08, 2016 | Jan. 30, 2016 |
Revolving Credit Facility | |||||
Credit Facility | |||||
Maximum availability under credit facility | $ 50,000,000 | ||||
Unused commitment fee, as a percent | 0.25% | ||||
Borrowing base to maintain, percentage | 10.00% | ||||
Borrowing base to maintain | $ 3,000,000 | ||||
Ownership interest percentage held as collateral security | 100.00% | ||||
Borrowings under the credit facility | $ 0 | $ 0 | $ 0 | ||
Borrowing base | 31,800,000 | ||||
Open on-demand letters of credit | 2,300,000 | ||||
Net available borrowing capacity under the credit facility | $ 26,300,000 | ||||
Revolving Credit Facility | LIBOR | Minimum | |||||
Credit Facility | |||||
Basis spread on variable rate (as a percent) | 1.50% | ||||
Revolving Credit Facility | LIBOR | Maximum | |||||
Credit Facility | |||||
Basis spread on variable rate (as a percent) | 1.75% | ||||
Revolving Credit Facility | Prime Rate | Minimum | |||||
Credit Facility | |||||
Basis spread on variable rate (as a percent) | 0.50% | ||||
Revolving Credit Facility | Prime Rate | Maximum | |||||
Credit Facility | |||||
Basis spread on variable rate (as a percent) | 0.75% | ||||
Standby and Documentary Letters of Credit | |||||
Credit Facility | |||||
Maximum availability under credit facility | $ 10,000,000 |
Stockholder's Equity and Stoc38
Stockholder's Equity and Stock-Based Compensation - Narrative (Details) - USD ($) | Jan. 17, 2017 | Mar. 31, 2017 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Dividends paid | $ 0 | $ 0 | $ 0 | |||
Pre-tax stock-based compensation expense | $ 1,200,000 | $ 700,000 | 1,600,000 | |||
Stock Incentive Plan, 2013 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized for grant (in shares) | 1,000,000 | |||||
Number of shares available for grant (in shares) | 300,000 | |||||
Stock Incentive Plan, 2014 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized for grant (in shares) | 2,400,000 | |||||
Number of shares available for grant (in shares) | 800,000 | |||||
Chief Executive Officer | Stock Incentive Plan, 2013 And 2014 Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted outside of plan (in shares) | 400,000 | |||||
Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted (in shares) | 2,114,951 | |||||
Number of options granted outside of plan (in shares) | 3,543,826 | 3,513,376 | ||||
Granted (in dollars per share) | $ 0.74 | $ 0.81 | ||||
Vested (in dollars per share) | $ 0.84 | $ 3.25 | ||||
Options exercised (in shares) | 0 | |||||
Aggregate intrinsic value of options exercised during the period (less than) | $ 1,000 | $ 0 | ||||
Total compensation expense not yet recognized on nonvested stock awards granted | $ 800,000 | |||||
Weighted average period over which the unrecognized compensation expense related to nonvested stock awards granted is expected to be recognized | 1 year 6 months | |||||
Employee Stock Option | Stock Incentive Plan, 2013 And 2014 Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Percentage of shares vesting | 50.00% | |||||
Employee Stock Option | Minimum | Stock Incentive Plan, 2013 And 2014 Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Price at which common stock may be purchased under option grant, as a percent of the fair value at grant date | 100.00% | |||||
Employee Stock Option | Maximum | Stock Incentive Plan, 2013 And 2014 Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Length of time options are exercisable after grant date | 10 years | |||||
Employee Stock Option | Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted (in shares) | 0 | 0 | ||||
Employee Stock Option | Director | Stock Incentive Plan, 2013 And 2014 Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted (in shares) | 0 | |||||
Employee Stock Option | Executive Officer | Long-Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in dollars per share) | $ 0.74 | |||||
Employee Stock Option | Executive Officer | Minimum | Long-Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted (in shares) | 0 | |||||
Employee Stock Option | Executive Officer | Maximum | Long-Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted (in shares) | 735,300 | |||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total compensation expense not yet recognized on nonvested stock awards granted | $ 400,000 | |||||
Weighted average period over which the unrecognized compensation expense related to nonvested stock awards granted is expected to be recognized | 11 months 5 days | |||||
Granted (in dollars per share) | $ 1.34 | $ 1.73 | ||||
Fair value of vested restricted stock | $ 700,000 | $ 700,000 | ||||
Aggregate intrinsic value of vested restricted stock | $ 300,000 | $ 200,000 | ||||
Shares granted (in shares) | 250,000 | |||||
Restricted Stock | Vesting if, on any date prior to the vesting date stock closing price is equal to or greater than $3.00 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share Price (in dollars per share) | $ 3 | |||||
Restricted Stock | Vesting if, on any date prior to the vesting date stock closing price is equal to or greater than $4.00 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share Price (in dollars per share) | $ 4 | |||||
Restricted Stock | Director | Stock Incentive Plan, 2013 And 2014 Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
Restricted Stock | Director | Minimum | Stock Incentive Plan, 2013 And 2014 Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
Restricted Stock | Director | Maximum | Stock Incentive Plan, 2013 And 2014 Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Restricted Stock | Chief Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted (in shares) | 200,000 | |||||
Restricted Stock | Chief Executive Officer | Vesting if, on any date prior to the vesting date stock closing price is equal to or greater than $3.00 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock to vest upon target closing stock price achievement (in shares) | 100,000 | |||||
Restricted Stock | Chief Executive Officer | Vesting if, on any date prior to the vesting date stock closing price is equal to or greater than $4.00 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock to vest upon target closing stock price achievement (in shares) | 100,000 | |||||
Restricted Stock | Chief Executive Officer | Stock Incentive Plan, 2013 And 2014 Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted (in shares) | 200,000 | |||||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted (in shares) | 12,000 | |||||
Performance Shares | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average period over which the unrecognized compensation expense related to nonvested stock awards granted is expected to be recognized | 2 years | |||||
Performance Shares | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average period over which the unrecognized compensation expense related to nonvested stock awards granted is expected to be recognized | 3 years | |||||
Performance Shares | Executive Officer | Annual Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in dollars per share) | $ 0.73 | |||||
Performance Shares | Executive Officer | Minimum | Annual Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted (in shares) | 0 | |||||
Performance Shares | Executive Officer | Maximum | Annual Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted (in shares) | 619,500 |
Stockholder's Equity and Stoc39
Stockholder's Equity and Stock-Based Compensation - Black-Scholes Assumptions (Details) | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 68.62% | ||
Risk-free interest rate | 1.73% | ||
Expected term | 5 years | 5 years | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 76.65% | 74.93% | |
Risk-free interest rate | 1.66% | 1.18% | |
Expected term | 3 years | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 84.94% | 77.13% | |
Risk-free interest rate | 2.05% | 1.84% | |
Expected term | 5 years |
Stockholder's Equity and Stoc40
Stockholder's Equity and Stock-Based Compensation - Stock Option Outstanding Activity (Details) - Employee Stock Option $ / shares in Units, $ in Thousands | 12 Months Ended |
Feb. 03, 2018USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding, beginning of period (in shares) | shares | 3,513,376 |
Granted (in shares) | shares | 2,114,951 |
Exercised (in shares) | shares | 0 |
Canceled - Vested (in shares) | shares | (1,648,450) |
Canceled - Nonvested (Forfeited) (in shares) | shares | (436,051) |
Outstanding, end of period (in shares) | shares | 3,543,826 |
Exercisable, end of period (in shares) | shares | 1,312,076 |
Weighted Average Exercise Price | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 3.48 |
Granted (in dollars per share) | $ / shares | 1.28 |
Exercised (in dollars per share) | $ / shares | 0 |
Canceled - Vested (in dollars per share) | $ / shares | 3.94 |
Canceled - Nonvested (Forfeited) (in dollars per share) | $ / shares | 1.56 |
Outstanding, end of period (in dollars per share) | $ / shares | 2.19 |
Exercisable, end of period (in dollars per share) | $ / shares | $ 3.47 |
Outstanding, Aggregate Intrinsic Value | $ | $ 0 |
Exercisable, end of period, Aggregate Intrinsic Value | $ | $ 0 |
Outstanding, Weighted Average Remaining Contractual Life | 5 years 22 days |
Exercisable, end of period, Weighted Average Remaining Contractual Life | 4 years 4 months 6 days |
Stockholder's Equity and Stoc41
Stockholder's Equity and Stock-Based Compensation - Nonvested Stock Option Activity (Details) - Employee Stock Option - $ / shares | 12 Months Ended | |
Feb. 03, 2018 | Jan. 28, 2017 | |
Number of Shares | ||
Nonvested, beginning of period (in shares) | 1,142,369 | |
Granted (in shares) | 2,114,951 | |
Vested (in shares) | (589,519) | |
Forfeited (in shares) | (436,051) | |
Nonvested, end of period (in shares) | 2,231,750 | 1,142,369 |
Weighted Average Grant Date Fair Value | ||
Nonvested, beginning of period (in dollars per share) | $ 0.80 | |
Granted (in dollars per share) | 0.74 | $ 0.81 |
Vested (in dollars per share) | 0.84 | 3.25 |
Forfeited (in dollars per share) | 0.75 | |
Nonvested, end of period (in dollars per share) | $ 0.74 | $ 0.80 |
Stockholder's Equity and Stoc42
Stockholder's Equity and Stock-Based Compensation - Restricted Stock Activity (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Feb. 03, 2018 | Jan. 28, 2017 | |
Number of Shares | ||
Nonvested, beginning of period (in shares) | 554,744 | |
Shares granted (in shares) | 250,000 | |
Vested (in shares) | (215,697) | |
Forfeited (in shares) | (44,114) | |
Nonvested, end of period (in shares) | 544,933 | 554,744 |
Weighted Average Grant Date Fair Value | ||
Nonvested, beginning of period (in dollars per share) | $ 1.91 | |
Granted (in dollars per share) | 1.34 | $ 1.73 |
Vested (in dollars per share) | 2.36 | |
Forfeited (in dollars per share) | 1.84 | |
Nonvested, end of period (in dollars per share) | $ 1.48 | $ 1.91 |
Aggregate intrinsic value | $ 676 |
Income Taxes - Tax Cuts and Job
Income Taxes - Tax Cuts and Jobs Act (Details) - USD ($) | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Lower corporate tax rate resulted in a blended rate | 33.80% | 35.00% | 35.00% |
Tax Cuts And Jobs Act Of 2017, provisional income tax expense | $ 0 | ||
Tax Cuts And Jobs Act Of 2017, change In tax rate, deferred tax asset, provisional income tax expense | 20,700,000 | ||
Tax Cuts And Jobs Act Of 2017, change In tax rate, deferred tax asset, provisional income tax benefit | $ 20,700,000 | ||
AMT tax credits expected to be refunded | $ 400,000 |
Income Taxes - Tax Provision (D
Income Taxes - Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal tax benefit | $ (439) | $ 0 | $ 0 |
State tax (benefit) expense | (59) | (269) | 172 |
Current tax (benefit) expense | (498) | (269) | 172 |
Deferred tax (benefit) expense | (275) | 72 | 37,543 |
Income tax (benefit) provision | $ (773) | $ (197) | $ 37,715 |
Income Taxes - ETR (Details)
Income Taxes - ETR (Details) | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax at statutory rate | 33.80% | 35.00% | 35.00% |
State income tax, net of federal benefit | 1.40% | 1.90% | 3.10% |
Change in valuation allowance | 56.70% | (36.10%) | (373.00%) |
Reserve for unrecognized tax benefits | 0.40% | 1.30% | (0.40%) |
Officer's compensation | 1.30% | 0.00% | 0.00% |
Impact of tax rate change on deferred taxes | (89.70%) | 0.00% | 0.00% |
Tax credits | 0.00% | (0.50%) | 4.80% |
Other | (0.50%) | (0.50%) | (1.00%) |
Effective income tax rate | 3.40% | 1.10% | (331.50%) |
Income Taxes - DTA & DTL (Detai
Income Taxes - DTA & DTL (Details) - USD ($) $ in Thousands | Feb. 03, 2018 | Jan. 28, 2017 |
Deferred tax assets: | ||
Accrued Friendship Rewards loyalty liability | $ 773 | $ 1,283 |
Accrued gift card liability | 495 | 599 |
Merchandise inventories | 845 | 1,083 |
Deferred rent and deferred lease incentives | 4,147 | 7,049 |
Stock-based compensation expense | 769 | 2,357 |
Net operating loss carryforwards | 30,550 | 36,565 |
Contribution carryforwards | 226 | 249 |
Tax credit carryforwards | 766 | 1,186 |
Other accrued liabilities | 1,152 | 2,837 |
Total deferred tax assets | 39,723 | 53,208 |
Less: Valuation allowance | (37,555) | (48,549) |
Deferred tax assets, net of valuation allowance | 2,168 | 4,659 |
Deferred tax liabilities: | ||
Depreciation and amortization | (1,235) | (3,879) |
Other | (336) | (459) |
Total deferred tax liabilities | (1,571) | (4,338) |
Net deferred tax assets | $ 597 | $ 321 |
Income Taxes - Loss Carryforwar
Income Taxes - Loss Carryforwards Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 03, 2018 | Jan. 28, 2017 | |
Operating Loss Carryforwards [Line Items] | ||
Increase (decrease) in valuation allowance | $ 11 | $ 6.5 |
Federal tax benefit | 26.1 | |
Federal loss carryforward | 124.2 | |
Tax credit carryforward | 0.8 | |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 1.7 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 4.5 |
Income Taxes - UTB (Details)
Income Taxes - UTB (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized Tax Benefits, Beginning Balance | $ 1,033 | $ 1,109 | $ 876 |
Additions based on tax positions related to the current year | 55 | 108 | 329 |
Additions for tax positions of previous years | 0 | 143 | 16 |
Reductions for tax positions of previous years | (300) | 0 | (70) |
Reductions for tax positions of previous years due to lapse of applicable statute of limitations | (161) | (327) | (42) |
Unrecognized Tax Benefits, Ending Balance | 627 | 1,033 | 1,109 |
Interest and penalties related to unrecognized tax benefits | 27 | 39 | $ 64 |
Accrued interest and penalties related to unrecognized tax benefits | 100 | 100 | |
Other Noncurrent Liabilities | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | $ 300 | $ 400 |
Earnings Per Share ("EPS") (Det
Earnings Per Share ("EPS") (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Numerator (in thousands): | |||||||||||
Net loss attributable to Christopher & Banks Corporation | $ (8,825) | $ (1,622) | $ (7,889) | $ (3,688) | $ (17,224) | $ 3,493 | $ (3,884) | $ (167) | $ (22,024) | $ (17,783) | $ (49,094) |
Income allocated to participating securities | 0 | 0 | 0 | ||||||||
Net loss available to common stockholders | $ (22,024) | $ (17,783) | $ (49,094) | ||||||||
Denominator (in thousands): | |||||||||||
Weighted average common shares outstanding - basic (in shares) | 37,212 | 37,016 | 36,886 | ||||||||
Dilutive shares (in shares) | 0 | 0 | 0 | ||||||||
Weighted average common and common equivalent shares outstanding - diluted (in shares) | 37,212 | 37,016 | 36,886 | ||||||||
Net loss per common share: | |||||||||||
Basic (in dollars per share) | $ (0.23) | $ (0.05) | $ (0.21) | $ (0.10) | $ (0.46) | $ 0.09 | $ (0.11) | $ 0 | $ (0.59) | $ (0.48) | $ (1.33) |
Diluted (in dollars per share) | $ (0.23) | $ (0.05) | $ (0.21) | $ (0.10) | $ (0.46) | $ 0.09 | $ (0.11) | $ 0 | $ (0.59) | $ (0.48) | $ (1.33) |
Stock options excluded from computation or earnings per share (in shares) | 2,900 | 3,200 | 2,300 |
Fair Value Measurements - Non-R
Fair Value Measurements - Non-Recurring (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Fair value measurements | |||
Impairment charge | $ 318 | $ 786 | $ 281 |
Nonrecurring basis | |||
Fair value measurements | |||
Long-lived assets | 318 | 877 | |
Impairment charge | 318 | 786 | |
Nonrecurring basis | Level 3 | |||
Fair value measurements | |||
Long-lived assets | $ 0 | $ 91 |
Employee Benefit Plans and Em51
Employee Benefit Plans and Employment Agreements (Details) - USD ($) $ in Millions | Jan. 17, 2017 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Minimum employee contribution as a percent of gross pay | 1.00% | |||
Maximum employee contribution as a percent of gross pay | 60.00% | |||
Defined contribution plan company match, cost recognized | $ 0.5 | $ 0.6 | $ 0.5 | |
Change In Control | Executive Officer | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Severance charge | $ 0.9 |
Lease Commitments (Details)
Lease Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Leases [Abstract] | |||
Minimum rent | $ 39,903 | $ 39,384 | $ 37,723 |
Contingent rent | 790 | 1,120 | 2,200 |
Maintenance, taxes and other | 16,483 | 18,688 | 19,159 |
Amortization of deferred lease incentives | (1,792) | (1,908) | (2,105) |
Total rent expense | 55,384 | $ 57,284 | $ 56,977 |
Payments Due by Period | |||
Fiscal 2,018 | 35,836 | ||
Fiscal 2,019 | 29,736 | ||
Fiscal 2,020 | 22,507 | ||
Fiscal 2,021 | 18,987 | ||
Fiscal 2,022 | 16,337 | ||
Thereafter | 39,720 | ||
Total | 163,123 | ||
Retail store facility operating leases | |||
Payments Due by Period | |||
Fiscal 2,018 | 35,628 | ||
Fiscal 2,019 | 29,638 | ||
Fiscal 2,020 | 22,483 | ||
Fiscal 2,021 | 18,987 | ||
Fiscal 2,022 | 16,337 | ||
Thereafter | 39,720 | ||
Total | 162,793 | ||
Vehicle operating leases | |||
Payments Due by Period | |||
Fiscal 2,018 | 208 | ||
Fiscal 2,019 | 98 | ||
Fiscal 2,020 | 24 | ||
Fiscal 2,021 | 0 | ||
Fiscal 2,022 | 0 | ||
Thereafter | 0 | ||
Total | $ 330 |
Quarterly Financial Data (Una53
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net sales | $ 92,265 | $ 98,468 | $ 86,618 | $ 88,556 | $ 84,980 | $ 106,668 | $ 89,923 | $ 100,033 | $ 365,906 | $ 381,605 | $ 383,828 |
Gross profit | 25,102 | 33,239 | 24,628 | 30,538 | 21,041 | 39,221 | 30,149 | 37,712 | (22,643) | (18,732) | (11,264) |
Net (loss) income | $ (8,825) | $ (1,622) | $ (7,889) | $ (3,688) | $ (17,224) | $ 3,493 | $ (3,884) | $ (167) | $ (22,024) | $ (17,783) | $ (49,094) |
Net (loss) income per share data: | |||||||||||
Basic (in dollars per share) | $ (0.23) | $ (0.05) | $ (0.21) | $ (0.10) | $ (0.46) | $ 0.09 | $ (0.11) | $ 0 | $ (0.59) | $ (0.48) | $ (1.33) |
Diluted (in dollars per share) | $ (0.23) | $ (0.05) | $ (0.21) | $ (0.10) | $ (0.46) | $ 0.09 | $ (0.11) | $ 0 | $ (0.59) | $ (0.48) | $ (1.33) |