Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Mar. 06, 2020 | Aug. 03, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Document Period End Date | Feb. 1, 2020 | ||
Entity Registrant Name | CHRISTOPHER & BANKS CORP | ||
Entity Central Index Key | 0000883943 | ||
Current Fiscal Year End Date | --02-01 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 38,377,475 | ||
Entity Public Float | $ 2.6 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 3,198 | $ 10,239 |
Accounts receivable | 2,975 | 2,767 |
Merchandise inventories | 41,698 | 41,039 |
Prepaid expenses and other current assets | 4,072 | 3,372 |
Income taxes receivable | 291 | 268 |
Total current assets | 52,234 | 57,685 |
Non-current assets: | ||
Property, equipment and improvements, net | 24,952 | 31,643 |
Operating lease assets | 110,509 | |
Deferred income taxes | 613 | 499 |
Other assets | 1,098 | 1,276 |
Total non-current assets | 137,172 | 33,418 |
Total assets | 189,406 | 91,103 |
Current liabilities: | ||
Accounts payable | 23,715 | 17,834 |
Current portion of long-term lease liabilities | 26,185 | |
Accrued salaries, wages and related expenses | 4,723 | 4,954 |
Accrued liabilities and other current liabilities | 24,053 | 25,894 |
Total current liabilities | 78,676 | 48,682 |
Non-current liabilities: | ||
Deferred lease incentives | 0 | 6,267 |
Long-term lease liabilities | 99,793 | |
Long-term lease liabilities | 6,661 | |
Other non-current liabilities | 1,829 | 8,970 |
Total non-current liabilities | 101,622 | 21,898 |
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, 48,680 and 48,365 shares issued, and 38,377 and 38,386 shares outstanding at February 1, 2020 and February 2, 2019, respectively | 452 | 481 |
Additional paid-in capital | 129,413 | 128,714 |
(Accumulated deficit) retained earnings | (7,882) | 4,137 |
Common stock held in treasury, 10,303 and 9,979 shares at cost at February 1, 2020 and February 2, 2019, respectively | (112,875) | (112,809) |
Total stockholders’ equity | 9,108 | 20,523 |
Total liabilities and stockholders’ equity | $ 189,406 | $ 91,103 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 01, 2020 | Feb. 02, 2019 |
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) | 48,680,000 | 48,365,000 |
Common stock outstanding (in shares) | 38,377,000 | 38,386,000 |
Common stock held in treasury (in shares) | 10,303,000 | 9,979,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 348,850 | $ 348,900 |
Merchandise, buying and occupancy costs | 240,023 | 246,269 |
Gross profit | 108,827 | 102,631 |
Other operating expenses: | ||
Selling, general and administrative | 116,143 | 120,371 |
Depreciation and amortization | 8,565 | 10,158 |
Impairment of long-lived assets | 311 | 4,384 |
Total other operating expenses | 125,019 | 134,913 |
Operating loss | (16,192) | (32,282) |
Interest expense, net | (475) | (183) |
Loss before income taxes | (16,667) | (32,465) |
Income tax provision | 27 | 374 |
Net loss and comprehensive loss | $ (16,694) | $ (32,839) |
Basic loss per share: | ||
Net loss (in dollars per share) | $ (0.44) | $ (0.88) |
Basic shares outstanding (in shares) | 37,891 | 37,492 |
Diluted loss per share: | ||
Net loss (in dollars per share) | $ (0.44) | $ (0.88) |
Diluted shares outstanding (in shares) | 37,891 | 37,492 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Treasury | Common Stock | Additional Paid-in Capital | (Accumulated Deficit) Retained Earnings |
Beginning balance (in shares) at Feb. 03, 2018 | 9,791,000 | 37,834,000 | |||
Beginning balance at Feb. 03, 2018 | $ 50,409 | $ (112,711) | $ 475 | $ 127,652 | $ 34,993 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (32,839) | (32,839) | |||
Issuance of restricted stock, net of forfeitures (in shares) | 740,000 | ||||
Issuance of restricted stock, net of forfeitures | (32) | $ 7 | (39) | ||
Stock-based compensation expense | 1,101 | 1,101 | |||
Acquisition of common stock held in treasury, at cost (in shares) | 188,000 | (188,000) | |||
Acquisition of common stock held in treasury, at cost | (99) | $ (98) | $ (1) | ||
Ending balance (in shares) at Feb. 02, 2019 | 9,979,000 | 38,386,000 | |||
Ending balance at Feb. 02, 2019 | 20,523 | $ (112,809) | $ 481 | 128,714 | 4,137 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (16,694) | (16,694) | |||
Issuance of restricted stock, net of forfeitures (in shares) | 315,000 | ||||
Issuance of restricted stock, net of forfeitures | (13) | $ 3 | (16) | ||
Stock-based compensation expense | $ 715 | 715 | |||
Acquisition of common stock held in treasury, at cost (in shares) | (324,053) | 324,000 | (324,000) | ||
Acquisition of common stock held in treasury, at cost | $ (98) | $ (66) | $ (32) | ||
Ending balance (in shares) at Feb. 01, 2020 | 10,303,000 | 38,377,000 | |||
Ending balance at Feb. 01, 2020 | $ 9,108 | $ (112,875) | $ 452 | $ 129,413 | $ (7,882) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Cash flows used by operating activities: | ||
Net loss | $ (16,694) | $ (32,839) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 8,565 | 10,158 |
Impairment of store assets | 311 | 4,384 |
Deferred income taxes, net | (72) | 98 |
Amortization of financing costs | 61 | 61 |
Lease expense | 25,449 | 0 |
Deferred lease-related liabilities | 0 | (950) |
Stock-based compensation expense | 715 | 1,101 |
Loss on disposal of assets | 0 | 3 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (208) | (141) |
Merchandise inventories | (659) | 323 |
Prepaid expenses and other assets | (1,143) | (605) |
Income taxes receivable | (23) | (96) |
Accounts payable | 5,920 | (2,857) |
Accrued liabilities | 1,141 | 251 |
Lease liabilities | (27,882) | 0 |
Other liabilities | (405) | (399) |
Net cash used by operating activities | (4,924) | (21,508) |
Cash flows (used by) provided from investing activities: | ||
Purchases of property, equipment and improvements | (2,006) | (4,294) |
Proceeds from sale of assets | 0 | 13,329 |
Net cash (used by) provided from investing activities | (2,006) | 9,035 |
Cash flows used by financing activities: | ||
Shares redeemed for payroll taxes | (13) | (32) |
Proceeds from short-term borrowings | 15,400 | 9,100 |
Payments of short-term borrowings | (15,400) | (9,100) |
Acquisition of common stock held in treasury, at cost | (98) | (99) |
Payment of deferred financing costs | 0 | (234) |
Net cash used by financing activities | (111) | (365) |
Net decrease in cash and cash equivalents | (7,041) | (12,838) |
Cash and cash equivalents at beginning of period | 10,239 | 23,077 |
Cash and cash equivalents at end of period | 3,198 | 10,239 |
Supplemental cash flow information: | ||
Interest paid | 475 | 190 |
Income taxes paid | 87 | 147 |
Accrued purchases of property, equipment and improvements | $ 98 | $ 156 |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies | 12 Months Ended |
Feb. 01, 2020 | |
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 447 and 455 stores as of February 1, 2020 and February 2, 2019 , 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 years ended February 1, 2020 ("Fiscal 2019 ") and February 2, 2019 ("Fiscal 2018 ") 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 other receivables. 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 1, 2020 February 2, 2019 Credit card receivables $ 2,078 $ 1,999 Other receivables 897 768 Total accounts receivable $ 2,975 $ 2,767 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 1, 2020 February 2, 2019 Merchandise - in store/eCommerce $ 29,921 $ 29,859 Merchandise - in transit 11,777 11,180 Total merchandise inventories $ 41,698 $ 41,039 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 2-10 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 annually or 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 or market value, as appropriate. 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, including right-of-use lease assets, 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 We sell merchandise through our brick and mortar and eCommerce sales channels. Revenues are recognized when control of the promised merchandise is transferred to our customers. Within our brick and mortar sales channel, control is transferred at the point of sale. Within our eCommerce sales channel, control is transferred upon delivery of the merchandise to our customers. Shipping revenues associated with the eCommerce channel are recognized upon the completion of the delivery. The revenue recorded reflects the consideration that we expect to receive in exchange for our merchandise. The Company has elected, as an accounting policy, to exclude from the transaction price all taxes assessed by governmental authorities imposed on merchandise sales. 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. 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 The Company has 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 amendment, the Company received a signing bonus of approximately $2 million from Comenity Bank and also earns revenue based on card usage by its customers. 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. 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. Operating Lease Assets The Company leases its headquarters and distribution center building and all of its store locations under operating leases. Beginning in Fiscal 2019, these operating leases are included in operating lease (right-of-use or ROU) assets, current portion of long-term lease liabilities, and long-term lease liabilities on our Consolidated Balance Sheets. Minimum lease payments, including scheduled rent increases or escalation clauses are recognized as rent expense on a straight-line basis over the applicable lease term. Operating lease costs include the amortization of the ROU asset and interest related to the operating lease liability. Any differences between straight-line rent and rents paid is included in the ROU asset. Variable lease cost for the operating leases includes contingent rent and payments for executory costs such as real estate taxes, insurance and common area maintenance. Short-term lease cost for operating leases includes rental expenses for leases with a term of less than 12 months. Certain leases contain provisions 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. 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 1, 2020 and February 2, 2019 , our lease termination liability is not material. Advertising Advertising costs are expensed as incurred and included in selling, general and administrative expenses. Advertising costs for Fiscal 2019 and Fiscal 2018 , were approximately $8.7 million and $8.7 million , respectively. 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 2019 and Fiscal 2018 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. Comprehensive Loss Comprehensive loss is the change in equity (net assets) of a business entity during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive loss is the sum of net loss from operations and other items that must bypass the Statement of Operations because they have not been realized, including items like an unrealized holding gain or loss from available for sale securities and foreign currency translation gains or losses. There was no difference between the reported net loss and comprehensive loss for fiscal years ended February 1, 2020 and February 2, 2019 . 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, and online purchases. Recently issued accounting pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance improves the disclosure requirements for fair value measurements. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We are currently evaluating the impact of adopting the updated provisions. Recently adopted accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The Company adopted the new standard, ASC 842, Leases, and all related amendments on February 3, 2019 using the "Comparatives Under 840 Option" for all leases in which we applied the previous standard, ASC 840, Leases, and recognized the effects of applying ASC 842 as a cumulative-effect adjustment to retained earnings as of February 3, 2019. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carryforward the historical lease classification. In addition, we elected certain practical expedients and accounting policies including the lessee practical expedient to not separate lease components. We made an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet. We recognize those lease payments in the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term. Adoption of the standard resulted in the recognition of operating lease assets and operating lease liabilities of $136.2 million and $153.9 million , respectively, as of February 3, 2019. The operating lease asset recorded at adoption of the standard represents the capitalization of operating lease assets and the reclassification of prepaid rent and leasehold acquisition costs, offset by the reclassification of straight-line rent accruals, tenant improvement allowances and vacant space reserves. At adoption, we recorded an adjustment to retained earnings of $4.7 million , which includes the recognition of the deferred gain on the sale-leaseback transaction of our corporate headquarters facility. Additional information and disclosures required by the new standard are contained in Note 11 - Leases. In August 2018, the SEC adopted a final rule under SEC Release No. 33-10532, Disclosure Update and Simplification that amends certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. The amendments also expanded the disclosure requirements on the analysis of shareholders' equity for interim financial statements, in which registrants must now analyze changes in shareholders’ equity, in the form of reconciliation, for the current and comparative year-to-date periods, with subtotals for each interim period. This final rule was effective on November 5, 2018. As of the first quarter of Fiscal 2019, the Company has adopted all relevant disclosure requirements, including the shareholders' equity interim disclosures. 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. |
Revenue
Revenue | 12 Months Ended |
Feb. 01, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Merchandise sales We sell merchandise through our brick and mortar and eCommerce sales channels. Revenues are recognized when control of the promised merchandise is transferred to our customers. Within our brick and mortar sales channel, control is transferred at the point of sale. Within our eCommerce sales channel, control is transferred upon delivery of the merchandise to our customers. Shipping revenues associated with the eCommerce channel are recognized upon the completion of the delivery. The revenue recorded reflects the consideration that we expect to receive in exchange for our merchandise. The Company has elected, as an accounting policy, to exclude from the transaction price all taxes assessed by governmental authorities imposed on merchandise sales. Right of return As part of our merchandise sales, we offer customers a right of return on merchandise that lapses based on the original purchase date. The Company estimates the amount of sales that may be returned by our customers and records this estimate as a reduction of revenue in the period in which the related revenues are recognized. We utilize historical and industry data to estimate the total return liability. Conversely, the reduction in revenue results in a corresponding reduction in merchandise, buying and occupancy costs which results in a contract asset for the anticipated merchandise returned. The total reduction in revenue from estimated returns was $1.0 million and $1.2 million as of February 1, 2020 and February 2, 2019 , respectively, which is included in accrued liabilities and other current liabilities in the Consolidated Balance Sheets. Friendship ® Rewards Program The Company established its Friendship ® Rewards Program as a loyalty program where customers earn points towards future discount certificates based on their purchase activity. We have identified the additional benefits received from this program as a separate performance obligation within a sales contract in the form of the discount certificates earned by customers. Accordingly, we assess any incremental discounts issued to our customers through the program and allocate a portion of the transaction price associated with merchandise sales from the loyalty program members to the future discounts earned. The transaction price allocated to future discounts is recorded as deferred revenue until the discounts are used or forfeited. In addition, the Company estimates breakage on the points earned within the program that will not be used by customers for future discounts. The Company estimates breakage based on the historical redemption rate and considers industry trends. Breakage is recorded as a reduction to the deferred revenue associated with the program. As of February 1, 2020 , and February 2, 2019 , the Company recorded $4.3 million and $3.8 million , respectively, in deferred revenue associated with the program, which is included in accrued liabilities and other current liabilities in the Consolidated Balance Sheets. Gift card revenue The Company sells gift cards to customers which can be redeemed for merchandise within our brick and mortar and eCommerce sales channels. Gift cards are recorded as deferred revenue when issued and are subsequently recorded as revenue upon redemption. The Company estimates breakage related to gift cards when the likelihood of redemption is remote. This estimate utilizes historical trends based on the vintage of the gift card. Breakage on gift cards is recorded as revenue in proportion to the rate of gift card redemptions by vintage. This represents a change in the methodology used to estimate breakage as, prior to the adoption of ASC 606, we had historically recognized breakage for the portion of the gift card balances that remained outstanding following 36 months of issuance. As of February 1, 2020 , and February 2, 2019 , the Company had $4.3 million and $4.6 million , respectively, of deferred revenue associated with the issuance of gift cards. The deferred gift card revenue is included in accrued liabilities and other current liabilities in the Consolidated Balance Sheets. Private label credit card The Company offers a private label credit card ("PLCC") under the Christopher and Banks brand name offered under an agreement with Comenity Bank. Pursuant to this agreement, there are several obligations on behalf of Comenity Bank that impact the recording of revenue. As part of the agreement, the Company received a signing bonus. We have determined that the benefits associated with signing the agreement are recognized over time throughout its term. This is the most accurate depiction of the transfer of services as the customer receives and consumes the benefits by obtaining and having the ability to use financing through Comenity Bank for purchases within our brick and mortar and eCommerce sales channels throughout the agreement's term. 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. As of February 1, 2020 , the Company had $1.3 million recorded as deferred revenue associated with the signing bonus, of which $0.3 million is included in accrued liabilities and other current liabilities and the remaining $1.1 million is included in other non-current liabilities in the Consolidated Balance Sheets. As of February 2, 2019 , the Company had $1.6 million recorded as deferred revenue associated with the signing bonus, of which $0.3 million was included in accrued liabilities and other current liabilities and the remaining $1.3 million was included in other non-current liabilities in the Consolidated Balance Sheet. The Company recorded $0.3 million of revenue for the fiscal years ended February 1, 2020 and February 2, 2019 associated with the signing bonus. The Company records revenue associated with royalties received for purchases made using the PLCC. Royalty revenue is recognized based on the total amount to which we have a right to invoice in accordance with the practical expedient included in ASC 606. Accordingly, royalty revenue is recognized in the period in which the related purchases is recognized. The Company receives a performance bonus based on the total amount of new PLCC accounts that are opened during the year. We have determined that this is a form of variable consideration. Variable consideration is recorded if, in the Company’s judgment, it is probable that a significant future reversal of revenue under the contract will not occur. For the fiscal years ended February 1, 2020 and February 2, 2019 , the Company met certain performance metrics within the contract and recorded a small amount of revenue associated with performance bonuses. Disaggregation of revenue The following table provides information about disaggregated revenue by sales channel. All revenue illustrated below is included within our one reportable segment. 52 Weeks Ended February 1, 2020 52 Weeks Ended February 2, 2019 Brick and mortar stores $ 267,967 $ 262,143 eCommerce sales 79,129 84,808 1 Other 1,754 1,949 Net sales $ 348,850 $ 348,900 (1) Includes approximately $11.3 million of 2018 revenues for the fifty-two week period ended from orders placed in store and fulfilled from another location. For 2019, similar sales are included in brick and mortar stores. Amounts included within other revenue relate to revenues earned from our private label credit card, net of any revenue adjustments and accruals. Contract balances The following table provides information about contract liabilities from contracts with customers (in thousands): Contract Liabilities February 1, 2020 February 2, 2019 Current Non-Current Current Non-Current Right of return liability $ 979 $ — $ 1,176 $ — Friendship Rewards Program liability 4,280 — 3,768 — Gift card revenue liability 4,282 — 4,646 — Private label credit card liability 274 1,073 274 1,348 Total $ 9,815 $ 1,073 $ 9,864 $ 1,348 The Company recognized revenue of $4.1 million and $4.5 million in the fifty-two week periods ended February 1, 2020 and February 2, 2019 , respectively, related to contract liabilities recorded at the beginning of the period. Such revenues were comprised of the redemption and forfeiture of Friendship Rewards Program discount certificates, redemption of gift cards, and amortization of the PLCC signing bonus. The Company did not have any material contract assets as of February 1, 2020 or February 2, 2019 . For the fifty-two week periods ended February 1, 2020 and February 2, 2019 , the Company did not recognize any revenue resulting from changes in the estimated variable consideration to be received associated with performance obligations satisfied or partially satisfied in prior periods. Transaction price allocated to remaining performance obligations The following table includes the estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied or partially unsatisfied as of February 1, 2020 : Revenue Expected to be Recognized by Period Total Less than 1 year 1-3 years 3-5 years Private label credit card $ 1,347 $ 274 $ 822 $ 251 Total $ 1,347 $ 274 $ 822 $ 251 Contract Costs The Company has not incurred any costs to obtain or fulfill a contract. |
Property, Equipment and Improve
Property, Equipment and Improvements, Net | 12 Months Ended |
Feb. 01, 2020 | |
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 1, 2020 February 2, 2019 Store leasehold improvements $ 49,894 $ 50,305 Store furniture and fixtures 69,735 70,815 Corporate office and distribution center furniture, fixtures and equipment 6,463 6,179 Computer and point of sale hardware and software 32,952 33,098 Construction in progress 275 419 Total property, equipment and improvements, gross 159,319 160,816 Less accumulated depreciation and amortization (134,367 ) (129,173 ) Total property, equipment and improvements, net $ 24,952 $ 31,643 Impairment of 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. Due to declining sales and continued operating losses, the Company performed impairment analyses during the fiscal year ended February 1, 2020 . Leasehold improvements, store furniture and fixtures, and right-of-use operating lease assets at certain underperforming stores, and stores identified for closure were analyzed for impairment. As a result of these analyses, the Company recorded $0.3 million of long-lived asset impairment during the 52 weeks ended February 1, 2020 . The Company recorded long-lived asset impairment of $4.4 million during the 52 weeks ended February 2, 2019 . See Note 9 - Fair Value Measurements , for further additional discussion. Sale-Leaseback On April 27, 2018, the Company completed the sale of and entered into an agreement to leaseback its corporate headquarters facility, including the distribution center, in Plymouth, Minnesota. The agreement provided for the sale of the facility for a purchase price of $13.7 million and the subsequent leaseback of the facility for a 15 -year period. The lease is classified as an operating lease. As a result of this transaction, the Company recorded a deferred gain of $7.7 million . At the beginning of Fiscal 2019, the remaining $7.3 million of the deferred gain was recorded as an adjustment to retained earnings with the adoption of ASC 842, Leases . As part of the transaction, the Company deposited $1.7 million in escrow for certain repairs to the building. As of February 2, 2019 , $0.8 million remained in escrow for repairs to the building. This amount was considered to be restricted cash and was included within cash and cash equivalents on the Consolidated Balance Sheets. As of February 1, 2020 , all repairs were completed and nothing remained in escrow. |
Accrued Liabilities and Current
Accrued Liabilities and Current Other Liabilities | 12 Months Ended |
Feb. 01, 2020 | |
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 1, 2020 February 2, 2019 Gift card and store credit liabilities $ 4,282 $ 4,646 Accrued Friendship Rewards Loyalty Program liability 4,280 3,768 Accrued income, sales and other taxes payable 1,056 911 Accrued occupancy-related expenses 468 3,700 Sales return reserve 979 1,176 eCommerce obligations 5,932 6,194 Other accrued liabilities 7,056 5,499 Total accrued liabilities and other current liabilities $ 24,053 $ 25,894 |
Credit Facility
Credit Facility | 12 Months Ended |
Feb. 01, 2020 | |
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, National Association ("Wells Fargo"), as lender. On August 3, 2018, the Company entered into a second amendment ("Second Amendment") to the Credit Facility. The Second Amendment, among other changes, (i) extended the term of the Credit Facility to August 3, 2023; and (ii) supplemented the existing $50.0 million revolving Credit Facility by adding a new $5.0 million revolving "first-in, last-out" tranche Credit Facility (the "FILO Facility"), subject to borrowing base restrictions applicable to the FILO Facility. The Company must draw under the FILO Facility before making any borrowings under the revolving Credit Facility. Loans under the FILO Facility will bear interest based on quarterly excess available under the Borrowing Base as defined in the Credit Facility. The interest rate under the FILO Facility will be either (i) the London Interbank Offered Rate ("LIBOR") plus 3.00% for FILO loans that are LIBOR loans; or (ii) 2.00% above the Base Rate for FILO loans that are Base Rate loans as such terms are defined in the Credit Facility. Borrowings under the Credit Facility will generally accrue interest at a rate ranging from 1.50% to 1.75% over the 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 terms are 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% . In addition to these changes, the Second Amendment eliminates availability against the Company's real property, which was the subject of a sale-leaseback transaction on April 27, 2018. The Company expensed approximately $61 thousand and $0.2 million of deferred financing costs during the fifty-two weeks ended February 1, 2020 and February 2, 2019 in connection with the Credit Agreement. The deferred financing costs have been combined with the balance of the deferred financing costs remaining from the prior amendment entered into on September 8, 2014. Deferred financing costs are included in other assets on the Consolidated Balance Sheets and are being amortized as interest expense over the related term of the Second Amendment. 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 financial covenants and other financial provisions of the Credit Facility as of February 1, 2020 . 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. There were no outstanding borrowings under the Credit Facility as of February 1, 2020 and February 2, 2019. The total borrowing base at February 1, 2020 was approximately $31.6 million . As of February 1, 2020 , the Company had open on-demand letters of credit of approximately $11.9 million . Accordingly, after reducing the capped borrowing base, no current borrowings, open letters of credit and the required minimum availability of the greater of $3.0 million , or 10.0% of the revolving loan cap, the net availability of revolving credit loans under the Credit Facility was approximately $16.7 million at February 1, 2020 . On February 27, 2020, the Company and Wells Fargo again amended the Credit Facility, which eliminated the $5.0 million FILO loan tranche simultaneously with the Company entering into a Term Loan Credit Facility with ALCC, LLC, a related entity of Angelo Gordon. See Note 14 - Subsequent Events for additional details. |
Stockholder's Equity and Stock-
Stockholder's Equity and Stock-Based Compensation | 12 Months Ended |
Feb. 01, 2020 | |
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. We have paid no dividends since 2010. Share repurchase program In December 2018, the Company's Board of Directors authorized a Stock Repurchase Program (the “Program”) to repurchase up to $2.0 million of the Company’s outstanding common stock through the period ending December 31, 2019 . The shares were repurchased from time to time through open market purchases in a manner consistent with applicable securities laws and regulations. During Fiscal 2019 , the Company repurchased 324,053 shares at a cost of approximately $0.1 million . S tock-based compensation The Company maintains the following stock plans approved by stockholders: the 2013 Directors' Equity Incentive Plan (the "2013 Stock Plan") and the 2018 Stock Incentive Plan (the “2018 Stock Plan”). On June 13, 2018, the Company adopted, after stockholder approval, the 2018 Stock Plan. With the adoption of the 2018 Stock Plan, no further awards may be made under the 2014 Stock Incentive Plan (the “2014 Stock Plan”). The aggregate number of shares that may be issued under all stock-based awards made under the 2018 Stock Plan will be (i) the sum of 3,000,000 and (ii) any shares subject to any outstanding award under the 2014 Stock Plan that after June 13, 2018 are not purchased, are forfeited or are reacquired by the Company due to the termination or cancellation of such award. In general, if an award entitles the holder thereof to receive or purchase shares, the number of shares covered by such award will be counted on the date of grant against the aggregate number of shares available under the 2018 Stock Plan. If awards under the 2018 Stock Plan or, after June 13, 2018, awards under the 2014 Stock Plan that expire or otherwise terminate without being exercised, the shares of common stock not acquired pursuant to such awards again become available for issuance under the 2018 Stock Plan in accordance with the share counting provisions in the 2018 Stock Plan. However, under the share counting provisions of the 2018 Stock Plan, the following shares will not again be available for issuance: (i) shares unissued due to a “net exercise” of a stock option, (ii) any shares withheld or shares tendered to satisfy tax withholding obligations under any award, (iii) shares covered by a SAR that is not settled in shares upon exercise and (iv) shares repurchased using stock option exercise proceeds. On June 13, 2018, the 2013 Stock Plan was amended and restated to increase the number of shares authorized by 500,000 shares of common stock. Under the 2018 Stock Plan and the 2013 Stock 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. 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. On June 27, 2019 , restricted stock and unit awards for 250,000 shares, in the aggregate, were granted to Directors. Approximately 1.5 million and 3.0 million shares were authorized for issuance under the 2013 Stock Plan and the 2018 Stock Plan, respectively. As of February 1, 2020 , there were approximately 0.3 million and 1.9 million shares available for future grants under the 2013 Stock Plan and the 2018 Stock Plan, respectively. As an inducement to join the Company, our new Chief Executive Officer, Keri Jones, was awarded 500,000 shares of non-qualified stock options and 250,000 shares of time-based restricted stock on March 12, 2018 outside of the above plans. Each of the awards vests 1/36th each month and the non-qualified stock option has a ten -year term. The total pre-tax compensation expense related to all stock-based awards for Fiscal 2019 and Fiscal 2018 was approximately $0.7 million and $1.1 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 2019 and Fiscal 2018 . Fiscal 2019 Fiscal 2018 Expected dividend yield —% —% Expected volatility 70.3-73.0% 70.2-77.2% Risk-free interest rate 1.7-2.4% 2.6-3.1% Expected term 3.0 years 3.0-5.0 years Stock-Based Compensation Activity — Stock Options The following tables present a summary of stock option activity for Fiscal 2019 : Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Life Outstanding, beginning of period 4,284,900 $ 1.68 Granted 1,442,836 0.34 Exercised — — Canceled - Vested (466,202 ) 3.38 Canceled - Nonvested (Forfeited) (773,346 ) 1.07 Outstanding, end of period 4,488,188 $ 1.17 $ — 6.3 years Exercisable, end of period 2,163,645 $ 1.79 $ — 4.9 years Number of Shares Weighted Average Grant Date Fair Value Nonvested, beginning of period 2,396,470 $ 0.59 Granted 1,442,836 0.16 Vested (741,417 ) 0.61 Forfeited (773,346 ) 0.57 Nonvested, end of period 2,324,543 0.33 The weighted average fair value for options granted during Fiscal 2019 and Fiscal 2018 was $0.16 and $0.57 , respectively. The grant date fair value of options vesting during Fiscal 2019 and Fiscal 2018 was approximately $0.61 and $0.72 , respectively. There were no options exercised during Fiscal 2019 and Fiscal 2018 . As of February 1, 2020 , there was approximately $0.4 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 1.4 years . During Fiscal 2019 , as part of its Annual Incentive Plan, the Company made awards of performance-based non-qualified stock options to a limited number of employees which entitles these employees to receive an 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 and generating positive cash flow. These 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 for Fiscal 2019 and the Company generated positive cash flow. The weighted average fair value of the options upon the grant date was $0.17 . At February 1, 2020 , options for approximately 539,070 shares remain outstanding. The Company made similar awards of performance-based non-qualified stock options to a limited number of employees in Fiscal 2018. In March 2019, all of the outstanding awards of non-qualified stock options granted in Fiscal 2018 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 2019 : Number of Shares Weighted Average Aggregate Nonvested, beginning of period 1,005,438 $ 0.97 Granted 425,000 0.12 Vested (696,257 ) 1.01 Forfeited (103,930 ) 0.16 Nonvested, end of period 630,251 0.47 $ 297 The weighted average fair value for restricted stock granted during Fiscal 2019 and Fiscal 2018 was $0.12 and $0.85 , respectively. The total grant date fair value of restricted stock vested during Fiscal 2019 and Fiscal 2018 was approximately $0.7 million and $0.6 million , respectively. The aggregate intrinsic value of restricted stock vested during Fiscal 2019 and Fiscal 2018 was approximately $0.3 million and $0.2 million , respectively. As of February 1, 2020 , there was approximately $0.2 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 1.3 years . Other Stock-Based Awards 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 employees which entitles these employees to receive an 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 293,700 shares. The weighted average grant date fair value of the options is $0.74 . |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the provision for income taxes for Fiscal 2019 and Fiscal 2018 were as follows (in thousands): Fiscal 2019 Fiscal 2018 Current: Federal tax expense (benefit) $ 19 $ (78 ) State tax expense 80 354 Current tax expense 99 276 Deferred tax (benefit) expense (72 ) 98 Income tax provision $ 27 $ 374 The reconciliations of the federal statutory tax rate to the Company's effective tax rate for Fiscal 2019 and Fiscal 2018 are as follows: Fiscal 2019 Fiscal 2018 Federal income tax at statutory rate 21.0 % 21.0 % State income tax, net of federal benefit 3.7 (2.5 ) Change in valuation allowance (25.0 ) (17.0 ) Reserve for unrecognized tax benefits (0.1 ) 0.2 Tax credits 1.5 0.3 Prior year true-ups (0.9 ) (2.9 ) Other (0.4 ) (0.3 ) Effective income tax rate (0.2 )% (1.2 )% Significant components of the Company's deferred income tax assets and liabilities are as follows (in thousands): February 1, 2020 February 2, 2019 Deferred tax assets: Accrued Friendship Rewards loyalty liability $ 771 $ 772 Accrued gift card liability 204 — Lease liability 32,416 — Merchandise inventories 861 827 Deferred rent and deferred lease incentives — 3,829 Stock-based compensation expense 643 749 Net operating loss carryforwards 38,842 34,819 Contribution carryforwards 177 176 Tax credit carryforwards 1,078 859 Depreciation and amortization — 746 Other accrued liabilities 966 1,189 Total deferred tax assets 75,958 43,966 Less: Valuation allowance (46,055 ) (43,060 ) Deferred tax assets, net of valuation allowance $ 29,903 $ 906 Deferred tax liabilities: Depreciation and amortization (465 ) — Right of use asset (28,490 ) — Accrued gift card liability — (127 ) Other (335 ) (280 ) Total deferred tax liabilities (29,290 ) (407 ) Net deferred tax assets $ 613 $ 499 Deferred income tax assets represent potential future income tax benefits. Realization of these assets is ultimately dependent upon future taxable income. ASC Topic 740 Income Taxes ("ASC Topic 740") 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 increased $3.0 million and $5.5 million during the fiscal years ended February 1, 2020 and February 2, 2019 , respectively. As of February 1, 2020 , the Company has gross federal and state net operating loss carryforwards of approximately $162.2 million and $83.2 million , respectively. A portion of the federal net operating loss carryforwards will begin to expire in 2032. The state net operating loss carryforwards have carryforward periods of 5 to 20 years and begin to expire in 2020. The Company also has federal tax credits of $1.1 million which will begin to expire in 2030 and gross charitable contribution carryforwards of $0.7 million that will begin to expire in 2020. The Company completed an Internal Revenue Code ("IRC") Section 382 review after the completion of Fiscal 2018 and the results of the review indicated that its net operating losses were not limited under Section 382. The Company has not completed an IRC Section 382 review for Fiscal 2019. Due to the existence of the valuation allowance, it is not expected that any possible limitation will have an impact on the results of operations of the Company. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): Balance at February 3, 2018 $ 627 Additions based on tax positions related to the current year 8 Additions for tax positions of previous years 128 Reductions for tax positions of previous years (161 ) Reductions for tax positions of previous years due to lapse of applicable statute of limitations (159 ) Balance at February 2, 2019 443 Additions based on tax positions related to the current year 113 Additions for tax positions of previous years 12 Reductions for tax positions of related to the current years — Reductions for tax positions of previous years due to lapse of applicable statute of limitations (31 ) Balance at February 1, 2020 $ 537 The Company's liability for unrecognized tax benefits is recorded within the Consolidated Balance Sheets in other non-current liabilities. The total amount of gross unrecognized tax benefits that, if recognized, would affect the effective tax rate as of February 1, 2020 and February 2, 2019 were $0.4 million and $0.3 million , respectively. The Company does not expect the liability for unrecognized tax benefits to significantly increase or decrease in the next twelve months. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes. The Company had $56 thousand and $47 thousand of accrued interest and penalties as of February 1, 2020 and February 2, 2019 , respectively. The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. As of February 1, 2020 , with few exceptions, the Company or its subsidiaries are no longer subject to examination prior to Fiscal 2011. |
Earnings Per Share ("EPS")
Earnings Per Share ("EPS") | 12 Months Ended |
Feb. 01, 2020 | |
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 2019 Fiscal 2018 Numerator (in thousands) : Net loss attributable to Christopher & Banks Corporation $ (16,694 ) $ (32,839 ) Income allocated to participating securities — — Net loss available to common stockholders $ (16,694 ) $ (32,839 ) Denominator (in thousands) : Weighted average common shares outstanding - basic 37,891 37,492 Dilutive shares — — Weighted average common and common equivalent shares outstanding - diluted 37,891 37,492 Net loss per common share: Basic $ (0.44 ) $ (0.88 ) Diluted $ (0.44 ) $ (0.88 ) Total stock options of approximately 4.2 million and 3.9 million were excluded from the shares used in the computation of diluted earnings per share for Fiscal 2019 and Fiscal 2018 , respectively, as they were anti-dilutive. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Feb. 01, 2020 | |
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 1, 2020 and February 2, 2019 , 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 2019 Fiscal 2018 Carrying value $ 510 $ 4,829 Fair value measured using Level 3 inputs 199 $ 445 Impairment charge $ 311 $ 4,384 Approximately $0.2 million of the Fiscal 2019 impairment charge reduced the carrying value of operating lease assets. The remainder of the Fiscal 2019 and 2018 impairment charges reduced the carrying value of fixed assets. 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 either a discounted cash flow or market value 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
Employee Benefit Plans | 12 Months Ended |
Feb. 01, 2020 | |
Defined Benefit Plan, Expected Future Employer Contributions [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 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 no matching contributions during Fiscal 2019 or Fiscal 2018 . The Company does not offer any other post-retirement, post-employment or pension benefits to directors or employees. |
Leases Commitments
Leases Commitments | 12 Months Ended |
Feb. 01, 2020 | |
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. In addition, we have lease agreements that contain both lease and non-lease components. We have elected to combine lease and non-lease components for all classes of assets. For the Company's current lease obligations, no explicit interest rates were stated in the lease agreements and no implicit rates could be determined based on the terms of the agreements. Therefore, in all cases, the Company has applied a formula-based incremental borrowing rate appropriate to the type of lease and lease term. Maturities of our lease liabilities as of February 1, 2020 are as follows: (in thousands) Lease Liabilities (1) 2020 $ 32,904 2021 27,326 2022 23,028 2023 21,929 2024 18,558 Thereafter 26,760 Total lease payments 150,505 Less: Imputed interest (24,527 ) Present value of lease liabilities 125,978 Less: Current lease liabilities (26,185 ) Long-term lease liabilities $ 99,793 (1) Includes retail stores and the corporate headquarters facility, including the distribution center. Maturities of our lease liabilities as of February 2, 2019 (under ASC 840, Leases ) were as follows: (in thousands) Lease Liabilities (1) 2019 $ 36,965 2020 25,887 2021 21,386 2022 18,439 2023 17,811 Thereafter 38,827 Total lease payments $ 159,315 (1) Includes retail stores and the corporate headquarters facility, including the distribution center. The weighted average remaining lease terms and discount rates for all leases as of February 1, 2020 were as follows: Remaining lease term and discount rate: February 1, 2020 Weighted average remaining lease term (years) 5.7 Weighted average discount rate 5.8 % Operating lease expense for the fifty-two weeks ended February 1, 2020 totaled approximately $39.4 million , with $ 2.2 million of that amount representing operating lease variable rent that was recorded in cost of sales. In addition, all but $71 thousand of the $37.2 million of non-variable operating lease expense is included in cost of sales. Seventy-one thousand of operating lease expense is included in selling, general and administrative expenses. For the fifty-two weeks ended February 1, 2020 , cash lease payments were $37.8 million , and right of use assets obtained in exchange for lease liabilities were $7.1 million . |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Feb. 01, 2020 | |
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. On August 14, 2019, Mark Gottlieb, a Company stockholder, filed a purported class action lawsuit against Jonathan Duskin; Seth Johnson; Keri Jones; Kent Kleeberger; William Sharpe, III; Joel Waller and Laura Weil (the "Named Directors"), B. Riley FBR, Inc. and B. Riley Financial Inc., in the Court of Chancery in the State of Delaware (the "Court of Chancery"), on behalf of himself and all stockholders who held shares as of December 20, 2018. The lawsuit alleges that the Named Directors breached their duty of loyalty in connection with the Company's rejection in December of 2018, of an unsolicited bid to acquire the Company. The lawsuit further alleges that the B. Riley firms aided and abetted the asserted breach of the duty of loyalty by the Named Directors. The Company believes the Complaint is without merit. The Named Directors, and the Company on their behalf, together with the B. Riley firms, intend to defend the lawsuit vigorously. On September 18, 2019, the Director Defendants filed a motion to dismiss the Plaintiff's complaint for failure to state a claim upon which relief can be granted. The motion has been briefed by Plaintiff and the Defendants and oral argument on the motion was held before the Court of Chancery on February 13, 2020. 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 our financial position, results of operations or liquidity. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Fiscal 2019 Quarters (1) (in thousands, except per share data) First Second Third Fourth Net sales $ 83,220 $ 83,443 $ 94,061 $ 88,126 Gross profit 25,614 24,474 31,926 26,813 Net (loss) income (6,152 ) (5,941 ) 487 (5,088 ) Net (loss) income per share data: Basic $ (0.16 ) $ (0.16 ) $ 0.01 $ (0.14 ) Diluted $ (0.16 ) $ (0.16 ) $ 0.01 $ (0.14 ) Fiscal 2018 Quarters (1) (in thousands, except per share data) First Second Third Fourth Net sales $ 85,901 $ 87,418 $ 91,288 $ 84,293 Gross profit 27,344 24,872 27,193 23,222 Net loss (5,319 ) (7,426 ) (8,817 ) (11,277 ) Net loss per share data: Basic $ (0.14 ) $ (0.20 ) $ (0.24 ) $ (0.30 ) Diluted $ (0.14 ) $ (0.20 ) $ (0.24 ) $ (0.30 ) __________________________________________ (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. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Feb. 01, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 27, 2020, the Company entered into (i) a third amendment (the “Third Amendment”) to its existing credit facility ( the “Credit Facility”) with Wells Fargo Bank, National Association as lender and (ii) a credit agreement (the “Term Loan Facility”) with ALCC, LLC as lender. Third Amendment to Credit Facility The Third Amendment, among other changes, (i) removed the $5,000,000 revolving “first-in, last-out” tranche credit facility, which was paid in full using proceeds from the Term Loan Facility and (ii) permits the Company to incur indebtedness under the Term Loan Facility. Term Loan Facility The Term Loan Facility provides for a delayed draw term loan facility in the aggregate principal amount of up to $10,000,000 with a maturity date of August 3, 2023. Loans under the Term Loan Facility bear interest at a rate of 10% per annum and will amortize on a straight-line basis based on a 5 -year amortization period in monthly installments beginning on the first business day of the thirteenth month after the date of the initial borrowing. The Company is permitted to make voluntary prepayments of the loans under the Term Loan Facility at any time without payment of a premium after providing two business days’ notice to the lender. The Company is required to make mandatory prepayments of loans under the Term Loan Facility (without payment of a premium) with (a) net cash proceeds from certain non-ordinary course asset sales (subject to exceptions), (b) casualty proceeds and condemnation awards (subject to reinvestment rights and other exceptions) and (c) net cash proceeds from issuances of capital stock (other than certain issuances of capital stock to the other Borrowers, for acquisitions permitted under the Term Loan Facility or certain issuances to the Company’s employees, directors or consultants). As of February 27, 2020, there are no guarantors under the Term Loan Facility, however, the obligations under the Term Loan Facility may be guaranteed by the Company’s subsequently acquired or formed direct and indirect subsidiaries. The Borrowers’ obligations under the Term Loan Facility are secured, subject to customary permitted liens and other agreed upon exceptions, by a perfected security interest in all of the Borrowers’ tangible and intangible assets, except for certain customarily excluded assets. The Term Loan Facility contains customary representations and warranties and customary affirmative and negative covenants, including, among other things, restrictions on indebtedness, liens, limitations on restrictive agreements, fundamental changes and business activities, investments, mergers, dispositions, transactions with affiliates, prepayment of other indebtedness and dividends and other distributions. The Term Loan Facility contains financial covenants requiring the Borrowers to (i) maintain availability at least equal to the greater of (a) ten percent ( 10% ) of the loan cap (the lesser of the aggregate commitments of the Company under the Credit Facility and the borrowing base) and (b) $3,000,000 and (ii) maintain specified minimum levels of consolidated EBITDA when the outstanding principal balance exceeds $5,000,000 . The Term Loan Facility contains events of default that include, among others, failure to pay principal or interest when due, failure to comply with the covenants set forth in the Term Loan Facility, bankruptcy events, cross-defaults and the occurrence of a change of control, subject to certain grace periods, qualifications and thresholds as specified in the Term Loan Facility. If an event of default under the Term Loan Facility occurs and is continuing, the loan commitments may be terminated and the principal amount outstanding, together with all accrued unpaid interest and other amounts owing in respect thereof, may be declared immediately due and payable. The above disclosures represent summaries of the Third Amendment and the Term Loan Facility copies of which were filed in their entirety with the SEC on March 4, 2020 in a Current Report on Form 8-K. |
Nature of Business and Signif_2
Nature of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 01, 2020 | |
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 years ended February 1, 2020 ("Fiscal 2019 ") and February 2, 2019 ("Fiscal 2018 ") 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 other receivables. 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 2-10 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 annually or 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 or market value, as appropriate. 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, including right-of-use lease assets, 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 We sell merchandise through our brick and mortar and eCommerce sales channels. Revenues are recognized when control of the promised merchandise is transferred to our customers. Within our brick and mortar sales channel, control is transferred at the point of sale. Within our eCommerce sales channel, control is transferred upon delivery of the merchandise to our customers. Shipping revenues associated with the eCommerce channel are recognized upon the completion of the delivery. The revenue recorded reflects the consideration that we expect to receive in exchange for our merchandise. The Company has elected, as an accounting policy, to exclude from the transaction price all taxes assessed by governmental authorities imposed on merchandise sales. 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. 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 The Company has 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 amendment, the Company received a signing bonus of approximately $2 million from Comenity Bank and also earns revenue based on card usage by its customers. 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. 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 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. |
Operating Lease Assets, Lease termination costs | Operating Lease Assets The Company leases its headquarters and distribution center building and all of its store locations under operating leases. Beginning in Fiscal 2019, these operating leases are included in operating lease (right-of-use or ROU) assets, current portion of long-term lease liabilities, and long-term lease liabilities on our Consolidated Balance Sheets. Minimum lease payments, including scheduled rent increases or escalation clauses are recognized as rent expense on a straight-line basis over the applicable lease term. Operating lease costs include the amortization of the ROU asset and interest related to the operating lease liability. Any differences between straight-line rent and rents paid is included in the ROU asset. Variable lease cost for the operating leases includes contingent rent and payments for executory costs such as real estate taxes, insurance and common area maintenance. Short-term lease cost for operating leases includes rental expenses for leases with a term of less than 12 months. Certain leases contain provisions 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. 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 1, 2020 and February 2, 2019 , our lease termination liability is not material. |
Advertising | Advertising Advertising costs are expensed as incurred and included in selling, general and administrative expenses. |
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 2019 and Fiscal 2018 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. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is the change in equity (net assets) of a business entity during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive loss is the sum of net loss from operations and other items that must bypass the Statement of Operations because they have not been realized, including items like an unrealized holding gain or loss from available for sale securities and foreign currency translation gains or losses. There was no difference between the reported net loss and comprehensive loss for fiscal years ended February 1, 2020 and February 2, 2019 . |
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, and online purchases. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance improves the disclosure requirements for fair value measurements. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We are currently evaluating the impact of adopting the updated provisions. Recently adopted accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The Company adopted the new standard, ASC 842, Leases, and all related amendments on February 3, 2019 using the "Comparatives Under 840 Option" for all leases in which we applied the previous standard, ASC 840, Leases, and recognized the effects of applying ASC 842 as a cumulative-effect adjustment to retained earnings as of February 3, 2019. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carryforward the historical lease classification. In addition, we elected certain practical expedients and accounting policies including the lessee practical expedient to not separate lease components. We made an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet. We recognize those lease payments in the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term. Adoption of the standard resulted in the recognition of operating lease assets and operating lease liabilities of $136.2 million and $153.9 million , respectively, as of February 3, 2019. The operating lease asset recorded at adoption of the standard represents the capitalization of operating lease assets and the reclassification of prepaid rent and leasehold acquisition costs, offset by the reclassification of straight-line rent accruals, tenant improvement allowances and vacant space reserves. At adoption, we recorded an adjustment to retained earnings of $4.7 million , which includes the recognition of the deferred gain on the sale-leaseback transaction of our corporate headquarters facility. Additional information and disclosures required by the new standard are contained in Note 11 - Leases. In August 2018, the SEC adopted a final rule under SEC Release No. 33-10532, Disclosure Update and Simplification that amends certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. The amendments also expanded the disclosure requirements on the analysis of shareholders' equity for interim financial statements, in which registrants must now analyze changes in shareholders’ equity, in the form of reconciliation, for the current and comparative year-to-date periods, with subtotals for each interim period. This final rule was effective on November 5, 2018. As of the first quarter of Fiscal 2019, the Company has adopted all relevant disclosure requirements, including the shareholders' equity interim disclosures. 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 Signif_3
Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consisted of the following (in thousands): February 1, 2020 February 2, 2019 Credit card receivables $ 2,078 $ 1,999 Other receivables 897 768 Total accounts receivable $ 2,975 $ 2,767 |
Schedule of Merchandise Inventories | Merchandise inventory consisted of the following (in thousands): February 1, 2020 February 2, 2019 Merchandise - in store/eCommerce $ 29,921 $ 29,859 Merchandise - in transit 11,777 11,180 Total merchandise inventories $ 41,698 $ 41,039 |
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 2-10 years Property, equipment and improvements, net consisted of the following (in thousands): Description February 1, 2020 February 2, 2019 Store leasehold improvements $ 49,894 $ 50,305 Store furniture and fixtures 69,735 70,815 Corporate office and distribution center furniture, fixtures and equipment 6,463 6,179 Computer and point of sale hardware and software 32,952 33,098 Construction in progress 275 419 Total property, equipment and improvements, gross 159,319 160,816 Less accumulated depreciation and amortization (134,367 ) (129,173 ) Total property, equipment and improvements, net $ 24,952 $ 31,643 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides information about disaggregated revenue by sales channel. All revenue illustrated below is included within our one reportable segment. 52 Weeks Ended February 1, 2020 52 Weeks Ended February 2, 2019 Brick and mortar stores $ 267,967 $ 262,143 eCommerce sales 79,129 84,808 1 Other 1,754 1,949 Net sales $ 348,850 $ 348,900 (1) Includes approximately $11.3 million of 2018 revenues for the fifty-two week period ended from orders placed in store and fulfilled from another location. For 2019, similar sales are included in brick and mortar stores. |
Schedule of Information about Contract Asset and Liabilities | The following table provides information about contract liabilities from contracts with customers (in thousands): Contract Liabilities February 1, 2020 February 2, 2019 Current Non-Current Current Non-Current Right of return liability $ 979 $ — $ 1,176 $ — Friendship Rewards Program liability 4,280 — 3,768 — Gift card revenue liability 4,282 — 4,646 — Private label credit card liability 274 1,073 274 1,348 Total $ 9,815 $ 1,073 $ 9,864 $ 1,348 |
Schedule of Estimated Revenue Expected to be Recognized in Future Periods Related to Performance Obligations | The following table includes the estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied or partially unsatisfied as of February 1, 2020 : Revenue Expected to be Recognized by Period Total Less than 1 year 1-3 years 3-5 years Private label credit card $ 1,347 $ 274 $ 822 $ 251 Total $ 1,347 $ 274 $ 822 $ 251 |
Property, Equipment and Impro_2
Property, Equipment and Improvements, Net (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
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 2-10 years Property, equipment and improvements, net consisted of the following (in thousands): Description February 1, 2020 February 2, 2019 Store leasehold improvements $ 49,894 $ 50,305 Store furniture and fixtures 69,735 70,815 Corporate office and distribution center furniture, fixtures and equipment 6,463 6,179 Computer and point of sale hardware and software 32,952 33,098 Construction in progress 275 419 Total property, equipment and improvements, gross 159,319 160,816 Less accumulated depreciation and amortization (134,367 ) (129,173 ) Total property, equipment and improvements, net $ 24,952 $ 31,643 |
Accrued Liabilities and Other C
Accrued Liabilities and Other Current Liabilities (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
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 1, 2020 February 2, 2019 Gift card and store credit liabilities $ 4,282 $ 4,646 Accrued Friendship Rewards Loyalty Program liability 4,280 3,768 Accrued income, sales and other taxes payable 1,056 911 Accrued occupancy-related expenses 468 3,700 Sales return reserve 979 1,176 eCommerce obligations 5,932 6,194 Other accrued liabilities 7,056 5,499 Total accrued liabilities and other current liabilities $ 24,053 $ 25,894 |
Stockholder's Equity and Stoc_2
Stockholder's Equity and Stock-Based Compensation (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
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 2019 and Fiscal 2018 . Fiscal 2019 Fiscal 2018 Expected dividend yield —% —% Expected volatility 70.3-73.0% 70.2-77.2% Risk-free interest rate 1.7-2.4% 2.6-3.1% Expected term 3.0 years 3.0-5.0 years |
Summary of Stock Option Activity | The following tables present a summary of stock option activity for Fiscal 2019 : Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Life Outstanding, beginning of period 4,284,900 $ 1.68 Granted 1,442,836 0.34 Exercised — — Canceled - Vested (466,202 ) 3.38 Canceled - Nonvested (Forfeited) (773,346 ) 1.07 Outstanding, end of period 4,488,188 $ 1.17 $ — 6.3 years Exercisable, end of period 2,163,645 $ 1.79 $ — 4.9 years |
Summary of Nonvested Share Activity | Number of Shares Weighted Average Grant Date Fair Value Nonvested, beginning of period 2,396,470 $ 0.59 Granted 1,442,836 0.16 Vested (741,417 ) 0.61 Forfeited (773,346 ) 0.57 Nonvested, end of period 2,324,543 0.33 |
Summary of Nonvested Restricted Stock Activity | The following table presents a summary of restricted stock activity for Fiscal 2019 : Number of Shares Weighted Average Aggregate Nonvested, beginning of period 1,005,438 $ 0.97 Granted 425,000 0.12 Vested (696,257 ) 1.01 Forfeited (103,930 ) 0.16 Nonvested, end of period 630,251 0.47 $ 297 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision for income taxes for Fiscal 2019 and Fiscal 2018 were as follows (in thousands): Fiscal 2019 Fiscal 2018 Current: Federal tax expense (benefit) $ 19 $ (78 ) State tax expense 80 354 Current tax expense 99 276 Deferred tax (benefit) expense (72 ) 98 Income tax provision $ 27 $ 374 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliations of the federal statutory tax rate to the Company's effective tax rate for Fiscal 2019 and Fiscal 2018 are as follows: Fiscal 2019 Fiscal 2018 Federal income tax at statutory rate 21.0 % 21.0 % State income tax, net of federal benefit 3.7 (2.5 ) Change in valuation allowance (25.0 ) (17.0 ) Reserve for unrecognized tax benefits (0.1 ) 0.2 Tax credits 1.5 0.3 Prior year true-ups (0.9 ) (2.9 ) Other (0.4 ) (0.3 ) Effective income tax rate (0.2 )% (1.2 )% |
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 1, 2020 February 2, 2019 Deferred tax assets: Accrued Friendship Rewards loyalty liability $ 771 $ 772 Accrued gift card liability 204 — Lease liability 32,416 — Merchandise inventories 861 827 Deferred rent and deferred lease incentives — 3,829 Stock-based compensation expense 643 749 Net operating loss carryforwards 38,842 34,819 Contribution carryforwards 177 176 Tax credit carryforwards 1,078 859 Depreciation and amortization — 746 Other accrued liabilities 966 1,189 Total deferred tax assets 75,958 43,966 Less: Valuation allowance (46,055 ) (43,060 ) Deferred tax assets, net of valuation allowance $ 29,903 $ 906 Deferred tax liabilities: Depreciation and amortization (465 ) — Right of use asset (28,490 ) — Accrued gift card liability — (127 ) Other (335 ) (280 ) Total deferred tax liabilities (29,290 ) (407 ) Net deferred tax assets $ 613 $ 499 |
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 February 3, 2018 $ 627 Additions based on tax positions related to the current year 8 Additions for tax positions of previous years 128 Reductions for tax positions of previous years (161 ) Reductions for tax positions of previous years due to lapse of applicable statute of limitations (159 ) Balance at February 2, 2019 443 Additions based on tax positions related to the current year 113 Additions for tax positions of previous years 12 Reductions for tax positions of related to the current years — Reductions for tax positions of previous years due to lapse of applicable statute of limitations (31 ) Balance at February 1, 2020 $ 537 |
Earnings Per Share ("EPS") (Tab
Earnings Per Share ("EPS") (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
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 2019 Fiscal 2018 Numerator (in thousands) : Net loss attributable to Christopher & Banks Corporation $ (16,694 ) $ (32,839 ) Income allocated to participating securities — — Net loss available to common stockholders $ (16,694 ) $ (32,839 ) Denominator (in thousands) : Weighted average common shares outstanding - basic 37,891 37,492 Dilutive shares — — Weighted average common and common equivalent shares outstanding - diluted 37,891 37,492 Net loss per common share: Basic $ (0.44 ) $ (0.88 ) Diluted $ (0.44 ) $ (0.88 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
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 1, 2020 and February 2, 2019 , 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 2019 Fiscal 2018 Carrying value $ 510 $ 4,829 Fair value measured using Level 3 inputs 199 $ 445 Impairment charge $ 311 $ 4,384 |
Leases Commitments (Tables)
Leases Commitments (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Maturities of Lease Liabilities | Maturities of our lease liabilities as of February 1, 2020 are as follows: (in thousands) Lease Liabilities (1) 2020 $ 32,904 2021 27,326 2022 23,028 2023 21,929 2024 18,558 Thereafter 26,760 Total lease payments 150,505 Less: Imputed interest (24,527 ) Present value of lease liabilities 125,978 Less: Current lease liabilities (26,185 ) Long-term lease liabilities $ 99,793 (1) Includes retail stores and the corporate headquarters facility, including the distribution center. |
Maturities of Lease Liabilities under ASC 840 | Maturities of our lease liabilities as of February 2, 2019 (under ASC 840, Leases ) were as follows: (in thousands) Lease Liabilities (1) 2019 $ 36,965 2020 25,887 2021 21,386 2022 18,439 2023 17,811 Thereafter 38,827 Total lease payments $ 159,315 (1) Includes retail stores and the corporate headquarters facility, including the distribution center. |
Weighted Average Remaining Lease Terms and Discount Rates | The weighted average remaining lease terms and discount rates for all leases as of February 1, 2020 were as follows: Remaining lease term and discount rate: February 1, 2020 Weighted average remaining lease term (years) 5.7 Weighted average discount rate 5.8 % |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Data | Fiscal 2019 Quarters (1) (in thousands, except per share data) First Second Third Fourth Net sales $ 83,220 $ 83,443 $ 94,061 $ 88,126 Gross profit 25,614 24,474 31,926 26,813 Net (loss) income (6,152 ) (5,941 ) 487 (5,088 ) Net (loss) income per share data: Basic $ (0.16 ) $ (0.16 ) $ 0.01 $ (0.14 ) Diluted $ (0.16 ) $ (0.16 ) $ 0.01 $ (0.14 ) Fiscal 2018 Quarters (1) (in thousands, except per share data) First Second Third Fourth Net sales $ 85,901 $ 87,418 $ 91,288 $ 84,293 Gross profit 27,344 24,872 27,193 23,222 Net loss (5,319 ) (7,426 ) (8,817 ) (11,277 ) Net loss per share data: Basic $ (0.14 ) $ (0.20 ) $ (0.24 ) $ (0.30 ) Diluted $ (0.14 ) $ (0.20 ) $ (0.24 ) $ (0.30 ) __________________________________________ (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 Signif_4
Nature of Business and Significant Accounting Policies - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Feb. 01, 2020USD ($)storesegment | Feb. 02, 2019USD ($)store | Feb. 03, 2019USD ($) | Apr. 30, 2017USD ($) | |
Accounting Policies [Abstract] | ||||
Number of stores | store | 447 | 455 | ||
Advertising expense | $ 8,700 | $ 8,700 | ||
Number of reportable segments | segment | 1 | |||
Number of operating segments | segment | 1 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Deferred revenue | $ 9,815 | 9,864 | ||
Right-of-use asset | 110,509 | |||
Lease liability | 125,978 | |||
(Accumulated deficit) retained earnings | (7,882) | 4,137 | ||
ASU 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right-of-use asset | $ 136,200 | |||
Lease liability | 153,900 | |||
(Accumulated deficit) retained earnings | $ 4,700 | |||
Private Label Credit Card | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Deferred revenue | $ 274 | $ 274 | $ 2,000 |
Nature of Business and Signif_5
Nature of Business and Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Credit card receivables | $ 2,078 | $ 1,999 |
Other receivables | 897 | 768 |
Total accounts receivable | $ 2,975 | $ 2,767 |
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 Signif_6
Nature of Business and Significant Accounting Policies - Merchandise Inventories (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Inventory Disclosure [Abstract] | ||
Merchandise - in store/eCommerce | $ 29,921 | $ 29,859 |
Merchandise - in transit | 11,777 | 11,180 |
Total merchandise inventories | $ 41,698 | $ 41,039 |
Nature of Business and Signif_7
Nature of Business and Significant Accounting Policies - Property and equipment estimated useful lives (Details) | 12 Months Ended |
Feb. 01, 2020 | |
Building and building improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 25 years |
Computer hardware and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 3 years |
Computer hardware and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 5 years |
Equipment, furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 3 years |
Equipment, furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 10 years |
Store leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 2 years |
Store leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 10 years |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Apr. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Sales return reserve | $ 979 | $ 1,176 | |
Deferred revenue | 9,815 | 9,864 | |
Deferred revenue associated with signing bonus, noncurrent | 1,073 | 1,348 | |
Revenue recognized | 4,100 | 4,500 | |
Costs to obtain or fulfill a contract | 0 | 0 | |
Friendship Rewards Program | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | 4,280 | 3,768 | |
Deferred revenue associated with signing bonus, noncurrent | 0 | 0 | |
Gift Cards revenue | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | 4,282 | 4,646 | |
Deferred revenue associated with signing bonus, noncurrent | 0 | 0 | |
Private Label Credit Card | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | 274 | 274 | $ 2,000 |
Deferred revenue associated with signing bonus | 1,300 | 1,600 | |
Deferred revenue associated with signing bonus, noncurrent | 1,073 | 1,348 | |
Revenue recognized | $ 300 | $ 300 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | |
Disaggregation of Revenue [Line Items] | ||||||||||
Net sales | $ 88,126 | $ 94,061 | $ 83,443 | $ 83,220 | $ 84,293 | $ 91,288 | $ 87,418 | $ 85,901 | $ 348,850 | $ 348,900 |
Brick and mortar stores | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Net sales | 267,967 | 262,143 | ||||||||
eCommerce sales | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Net sales | 79,129 | 84,808 | ||||||||
Other | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Net sales | $ 1,754 | 1,949 | ||||||||
Sales Channel, E-Commerce And Brick And Mortar | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Net sales | $ 11,300 |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 | Apr. 30, 2017 |
Current | |||
Right of return liability | $ 979 | $ 1,176 | |
Contract liabilities, current | 9,815 | 9,864 | |
Non-Current | |||
Right of return liability | 0 | 0 | |
Contract liabilities, non-current | 1,073 | 1,348 | |
Friendship Rewards Program liability | |||
Current | |||
Contract liabilities, current | 4,280 | 3,768 | |
Non-Current | |||
Contract liabilities, non-current | 0 | 0 | |
Gift card revenue liability | |||
Current | |||
Contract liabilities, current | 4,282 | 4,646 | |
Non-Current | |||
Contract liabilities, non-current | 0 | 0 | |
Private label credit card liability | |||
Current | |||
Contract liabilities, current | 274 | 274 | $ 2,000 |
Non-Current | |||
Contract liabilities, non-current | $ 1,073 | $ 1,348 |
Revenue - Schedule of Estimated
Revenue - Schedule of Estimated Revenue Recognized in Future Periods for Performance Obligations (Details) $ in Thousands | Feb. 01, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Performance obligation expected timing of satisfaction | $ 1,347 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-02-02 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation expected timing of satisfaction | $ 274 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-02-03 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation expected timing of satisfaction | $ 822 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period | 3 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-02-04 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation expected timing of satisfaction | $ 251 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period | 3 years |
Property, Equipment and Impro_3
Property, Equipment and Improvements, Net (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and improvements, gross | $ 159,319 | $ 160,816 |
Less accumulated depreciation and amortization | (134,367) | (129,173) |
Total property, equipment and improvements, net | 24,952 | 31,643 |
Store leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and improvements, gross | 49,894 | 50,305 |
Store furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and improvements, gross | 69,735 | 70,815 |
Corporate office and distribution center furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and improvements, gross | 6,463 | 6,179 |
Computer and point of sale hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and improvements, gross | 32,952 | 33,098 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and improvements, gross | $ 275 | $ 419 |
Property, Equipment and Impro_4
Property, Equipment and Improvements, Net - Impairment of Long-lived Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Impairment of long-lived assets | $ 311 | $ 4,384 |
Property, Equipment and Impro_5
Property, Equipment and Improvements, Net - Sales Leaseback (Details) - USD ($) $ in Millions | Apr. 27, 2018 | Feb. 03, 2019 | Feb. 02, 2019 |
Property, Plant and Equipment [Line Items] | |||
Leaseback transaction, purchase price | $ 13.7 | ||
Lease term | 15 years | ||
Sale Leaseback, deferred gain | $ 7.7 | ||
Cash and Cash Equivalents | |||
Property, Plant and Equipment [Line Items] | |||
Escrow deposit | $ 1.7 | $ 0.8 | |
ASU 2016-02 | |||
Property, Plant and Equipment [Line Items] | |||
Sale Leaseback, deferred gain | $ 7.3 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Current Liabilities (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Schedule Of Accrued Liabilities [Line Items] | ||
Contract liabilities | $ 9,815 | $ 9,864 |
Accrued income, sales and other taxes payable | 1,056 | 911 |
Accrued occupancy-related expenses | 468 | 3,700 |
Sales return reserve | 979 | 1,176 |
eCommerce obligations | 5,932 | 6,194 |
Other accrued liabilities | 7,056 | 5,499 |
Total accrued liabilities and other current liabilities | 24,053 | 25,894 |
Gift card and store credit liabilities | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Contract liabilities | 4,282 | 4,646 |
Accrued Friendship Rewards Loyalty Program liability | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Contract liabilities | $ 4,280 | $ 3,768 |
Credit Facility (Details)
Credit Facility (Details) - USD ($) | Feb. 27, 2020 | Aug. 03, 2018 | Feb. 01, 2020 | Feb. 02, 2019 |
Credit Facility | ||||
Ownership interest percentage held as collateral security | 100.00% | |||
Other Assets | ||||
Credit Facility | ||||
Deferred financing costs | $ 61,000 | $ 200,000 | ||
Revolving Credit Facility | Wells Fargo Bank, N.A. | ||||
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% | 10.00% | ||
Borrowing base to maintain | $ 3,000,000 | $ 3,000,000 | ||
Borrowings under the credit facility | 0 | $ 0 | ||
Borrowing base | 31,600,000 | |||
Open on-demand letters of credit | 11,900,000 | |||
Net available borrowing capacity under the credit facility | $ 16,700,000 | |||
Revolving Credit Facility | Wells Fargo Bank, N.A. | LIBOR | Minimum | ||||
Credit Facility | ||||
Basis spread on variable rate (as a percent) | 1.50% | |||
Revolving Credit Facility | Wells Fargo Bank, N.A. | LIBOR | Maximum | ||||
Credit Facility | ||||
Basis spread on variable rate (as a percent) | 1.75% | |||
Revolving Credit Facility | Wells Fargo Bank, N.A. | Prime Rate | Minimum | ||||
Credit Facility | ||||
Basis spread on variable rate (as a percent) | 0.50% | |||
Revolving Credit Facility | Wells Fargo Bank, N.A. | Prime Rate | Maximum | ||||
Credit Facility | ||||
Basis spread on variable rate (as a percent) | 0.75% | |||
Revolving Credit Facility | First In Last Out Credit Facility | Wells Fargo Bank, N.A. | ||||
Credit Facility | ||||
Maximum availability under credit facility | $ 5,000,000 | |||
Revolving Credit Facility | First In Last Out Credit Facility | Wells Fargo Bank, N.A. | LIBOR | ||||
Credit Facility | ||||
Basis spread on variable rate (as a percent) | 3.00% | |||
Revolving Credit Facility | First In Last Out Credit Facility | Wells Fargo Bank, N.A. | Base Rate | ||||
Credit Facility | ||||
Basis spread on variable rate (as a percent) | 2.00% | |||
Subsequent Event | Revolving Credit Facility | First In Last Out Credit Facility | Wells Fargo Bank, N.A. | ||||
Credit Facility | ||||
Debt eliminated | $ 5,000,000 |
Stockholder's Equity and Stoc_3
Stockholder's Equity and Stock-Based Compensation - Narrative (Details) - USD ($) | Jun. 27, 2019 | Jun. 13, 2018 | Mar. 12, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Dividends paid | $ 0 | $ 0 | $ 0 | |||||
Stock Repurchase Program, authorized amount | $ 2,000,000 | |||||||
Shares repurchased (in shares) | 324,053 | |||||||
Shares repurchase cost | $ 98,000 | 99,000 | ||||||
Pre-tax stock-based compensation expense | $ 700,000 | $ 1,100,000 | ||||||
2014 Stock Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards granted (in shares) | 0 | |||||||
2018 Stock Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized for grant (in shares) | 3,000,000 | |||||||
Increase in number of shares authorized | 500,000 | |||||||
Number of shares available for grant (in shares) | 1,900,000 | |||||||
2013 Stock Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized for grant (in shares) | 1,500,000 | |||||||
Number of shares available for grant (in shares) | 300,000 | |||||||
Employee Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards granted (in shares) | 1,442,836 | |||||||
Granted (in dollars per share) | $ 0.16 | $ 0.57 | ||||||
Vested (in dollars per share) | $ 0.61 | $ 0.72 | ||||||
Options exercised (in shares) | 0 | 0 | ||||||
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 | 1 year 4 months 28 days | |||||||
Shares outstanding (in shares) | 4,488,188 | 4,284,900 | ||||||
Employee Stock Option | 2018 Stock Incentive Plan And 2013 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 | 2018 Stock Incentive Plan And 2013 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 | 2018 Stock Incentive Plan And 2013 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] | ||||||||
Awards granted (in shares) | 500,000 | |||||||
Vesting period | 10 years | |||||||
Percentage of shares vesting | 3.00% | |||||||
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] | ||||||||
Awards 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] | ||||||||
Awards granted (in shares) | 293,700 | |||||||
Stock Option Award | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares outstanding (in shares) | 539,070 | |||||||
Performance Shares | Annual Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted (in dollars per share) | $ 0.17 | |||||||
Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total compensation expense not yet recognized on nonvested stock awards granted | $ 200,000 | |||||||
Weighted average period over which the unrecognized compensation expense related to nonvested stock awards granted is expected to be recognized | 1 year 4 months 1 day | |||||||
Granted (in dollars per share) | $ 0.12 | $ 0.85 | ||||||
Fair value of vested restricted stock | $ 700,000 | $ 600,000 | ||||||
Aggregate intrinsic value of vested restricted stock | $ 300,000 | $ 200,000 | ||||||
Restricted Stock | Director | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards granted (in shares) | 250,000 | |||||||
Vesting period | 10 years | |||||||
Restricted Stock | Director | 2018 Stock Incentive Plan And 2013 Plans | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 1 year | |||||||
Restricted Stock | Director | Minimum | 2018 Stock Incentive Plan And 2013 Plans | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 1 year | |||||||
Restricted Stock | Director | Maximum | 2018 Stock Incentive Plan And 2013 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] | ||||||||
Awards granted (in shares) | 250,000 | |||||||
Percentage of shares vesting | 3.00% |
Stockholder's Equity and Stoc_4
Stockholder's Equity and Stock-Based Compensation - Black-Scholes Assumptions (Details) | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 70.16% | 76.65% |
Risk-free interest rate | 2.64% | 1.66% |
Expected term | 3 years | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 77.24% | 84.94% |
Risk-free interest rate | 3.05% | 2.05% |
Expected term | 5 years |
Stockholder's Equity and Stoc_5
Stockholder's Equity and Stock-Based Compensation - Stock Option Outstanding Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Stock Option Award | ||
Number of Shares | ||
Outstanding, end of period (in shares) | 539,070 | |
Employee Stock Option | ||
Number of Shares | ||
Outstanding, beginning of period (in shares) | 4,284,900 | |
Granted (in shares) | 1,442,836 | |
Exercised (in shares) | 0 | 0 |
Canceled - Vested (in shares) | (466,202) | |
Canceled - Nonvested (Forfeited) (in shares) | (773,346) | |
Outstanding, end of period (in shares) | 4,488,188 | 4,284,900 |
Exercisable, end of period (in shares) | 2,163,645 | |
Weighted Average Exercise Price | ||
Outstanding, beginning of period (in dollars per share) | $ 1.68 | |
Granted (in dollars per share) | 0.34 | |
Exercised (in dollars per share) | 0 | |
Canceled - Vested (in dollars per share) | 3.38 | |
Canceled - Nonvested (Forfeited) (in dollars per share) | 1.07 | |
Outstanding, end of period (in dollars per share) | 1.17 | $ 1.68 |
Exercisable, end of period (in dollars per share) | $ 1.79 | |
Outstanding, Aggregate Intrinsic Value | $ 0 | |
Exercisable, end of period, Aggregate Intrinsic Value | $ 0 | |
Outstanding, Weighted Average Remaining Contractual Life | 6 years 3 months 13 days | |
Exercisable, end of period, Weighted Average Remaining Contractual Life | 4 years 10 months 20 days |
Stockholder's Equity and Stoc_6
Stockholder's Equity and Stock-Based Compensation - Nonvested Stock Option Activity (Details) - Employee Stock Option - $ / shares | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Number of Shares | ||
Nonvested, beginning of period (in shares) | 2,396,470 | |
Granted (in shares) | 1,442,836 | |
Vested (in shares) | (741,417) | |
Forfeited (in shares) | (773,346) | |
Nonvested, end of period (in shares) | 2,324,543 | 2,396,470 |
Weighted Average Grant Date Fair Value | ||
Nonvested, beginning of period (in dollars per share) | $ 0.59 | |
Granted (in dollars per share) | 0.16 | $ 0.57 |
Vested (in dollars per share) | 0.61 | 0.72 |
Forfeited (in dollars per share) | 0.57 | |
Nonvested, end of period (in dollars per share) | $ 0.33 | $ 0.59 |
Stockholder's Equity and Stoc_7
Stockholder's Equity and Stock-Based Compensation - Restricted Stock Activity (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Number of Shares | ||
Nonvested, beginning of period (in shares) | 1,005,438 | |
Shares granted (in shares) | 425,000 | |
Vested (in shares) | (696,257) | |
Forfeited (in shares) | (103,930) | |
Nonvested, end of period (in shares) | 630,251 | 1,005,438 |
Weighted Average Grant Date Fair Value | ||
Nonvested, beginning of period (in dollars per share) | $ 0.97 | |
Granted (in dollars per share) | 0.12 | $ 0.85 |
Vested (in dollars per share) | 1.01 | |
Forfeited (in dollars per share) | 0.16 | |
Nonvested, end of period (in dollars per share) | $ 0.47 | $ 0.97 |
Aggregate Intrinsic Value (in thousands) | $ 297 |
Income Taxes - Tax Provision (D
Income Taxes - Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal tax expense (benefit) | $ 19 | $ (78) |
State tax expense | 80 | 354 |
Current tax expense | 99 | 276 |
Deferred tax (benefit) expense | (72) | 98 |
Income tax provision | $ 27 | $ 374 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate (Details) | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax at statutory rate | 21.00% | 21.00% |
State income tax, net of federal benefit | 3.70% | (2.50%) |
Change in valuation allowance | (25.00%) | (17.00%) |
Reserve for unrecognized tax benefits | (0.10%) | 0.20% |
Tax credits | 1.50% | 0.30% |
Prior year true-ups | (0.90%) | (2.90%) |
Other | (0.40%) | (0.30%) |
Effective income tax rate | (0.20%) | (1.20%) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Deferred tax assets: | ||
Accrued Friendship Rewards loyalty liability | $ 771 | $ 772 |
Accrued gift card liability | 204 | 0 |
Lease liability | 32,416 | |
Merchandise inventories | 861 | 827 |
Deferred rent and deferred lease incentives | 0 | 3,829 |
Stock-based compensation expense | 643 | 749 |
Net operating loss carryforwards | 38,842 | 34,819 |
Contribution carryforwards | 177 | 176 |
Tax credit carryforwards | 1,078 | 859 |
Depreciation and amortization | 0 | 746 |
Other accrued liabilities | 966 | 1,189 |
Total deferred tax assets | 75,958 | 43,966 |
Less: Valuation allowance | (46,055) | (43,060) |
Deferred tax assets, net of valuation allowance | 29,903 | 906 |
Deferred tax liabilities: | ||
Depreciation and amortization | (465) | 0 |
Right of use asset | (28,490) | |
Accrued gift card liability | 0 | (127) |
Other | (335) | (280) |
Total deferred tax liabilities | (29,290) | (407) |
Net deferred tax assets | $ 613 | $ 499 |
Income Taxes - Loss Carryforwar
Income Taxes - Loss Carryforwards Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Operating Loss Carryforwards [Line Items] | ||
Increase in valuation allowance | $ 3 | $ 5.5 |
Federal operating loss carryforwards | 1.1 | |
Tax credit carryforward | 0.7 | |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Federal loss carryforward | 162.2 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Federal loss carryforward | $ 83.2 | |
Minimum | ||
Operating Loss Carryforwards [Line Items] | ||
State operating loss carryforwards periods | 5 years | |
Maximum | ||
Operating Loss Carryforwards [Line Items] | ||
State operating loss carryforwards periods | 20 years |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized Tax Benefits, Beginning Balance | $ 443 | $ 627 |
Additions based on tax positions related to the current year | 113 | 8 |
Additions for tax positions of previous years | 12 | 128 |
Reductions for tax positions of previous years | (161) | |
Reductions for tax positions of related to the current years | 0 | |
Reductions for tax positions of previous years due to lapse of applicable statute of limitations | (31) | (159) |
Unrecognized Tax Benefits, Ending Balance | 537 | 443 |
Accrued interest and penalties related to unrecognized tax benefits | 56 | 47 |
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 | $ 400 | $ 300 |
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. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | |
Numerator (in thousands): | ||||||||||
Net loss attributable to Christopher & Banks Corporation | $ (5,088) | $ 487 | $ (5,941) | $ (6,152) | $ (11,277) | $ (8,817) | $ (7,426) | $ (5,319) | $ (16,694) | $ (32,839) |
Income allocated to participating securities | 0 | 0 | ||||||||
Net loss available to common stockholders | $ (16,694) | $ (32,839) | ||||||||
Denominator (in thousands): | ||||||||||
Weighted average common shares outstanding - basic (in shares) | 37,891 | 37,492 | ||||||||
Dilutive shares (in shares) | 0 | 0 | ||||||||
Weighted average common and common equivalent shares outstanding - diluted (in shares) | 37,891 | 37,492 | ||||||||
Net loss per common share: | ||||||||||
Basic (in dollars per share) | $ (0.14) | $ 0.01 | $ (0.16) | $ (0.16) | $ (0.30) | $ (0.24) | $ (0.20) | $ (0.14) | $ (0.44) | $ (0.88) |
Diluted (in dollars per share) | $ (0.14) | $ 0.01 | $ (0.16) | $ (0.16) | $ (0.30) | $ (0.24) | $ (0.20) | $ (0.14) | $ (0.44) | $ (0.88) |
Stock options excluded from computation or earnings per share (in shares) | 4,200 | 3,900 |
Fair Value Measurements - Non-R
Fair Value Measurements - Non-Recurring (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Fair value measurements | ||
Impairment charge | $ 311 | $ 4,384 |
Operating lease, impairment | 200 | |
Nonrecurring basis | ||
Fair value measurements | ||
Long-lived assets | 510 | 4,829 |
Impairment charge | 311 | 4,384 |
Nonrecurring basis | Level 3 | ||
Fair value measurements | ||
Long-lived assets | $ 199 | $ 445 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Defined Benefit Plan, Expected Future Employer Contributions [Abstract] | ||
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 | $ 0 |
Leases Commitments - Maturities
Leases Commitments - Maturities of Lease Liabilities (Details) $ in Thousands | Feb. 01, 2020USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
Remainder of 2020 | $ 32,904 |
2021 | 27,326 |
2022 | 23,028 |
2023 | 21,929 |
2024 | 18,558 |
Thereafter | 26,760 |
Total lease payments | 150,505 |
Less: Imputed interest | (24,527) |
Present value of lease liabilities | 125,978 |
Less: Current lease liabilities | (26,185) |
Long-term lease liabilities | $ 99,793 |
Leases Commitments - Maturiti_2
Leases Commitments - Maturities of Lease Liabilities Under ASC 840 (Details) $ in Thousands | Feb. 02, 2019USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | $ 36,965 |
2020 | 25,887 |
2021 | 21,386 |
2022 | 18,439 |
2023 | 17,811 |
Thereafter | 38,827 |
Total lease payments | $ 159,315 |
Leases Commitments - Weighted A
Leases Commitments - Weighted Average Remaining Lease Terms and Discount Rates (Details) | Feb. 01, 2020 |
Leases [Abstract] | |
Weighted average remaining lease term (years) | 5 years 270 days |
Weighted average discount rate | 5.80% |
Leases Commitments - Additional
Leases Commitments - Additional Information (Details) $ in Thousands | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |
Lease expense | $ 39,400 |
Variable lease expense | 2,200 |
Lease payments | 37,800 |
Right of use asset obtained in exchange for lease liabilities | 7,100 |
Selling, General and Administrative Expenses | |
Lessee, Lease, Description [Line Items] | |
Lease expense | 71 |
Cost of Sales | |
Lessee, Lease, Description [Line Items] | |
Lease expense | $ 37,200 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | |
Quarterly Financial Data [Abstract] | ||||||||||
Net sales | $ 88,126 | $ 94,061 | $ 83,443 | $ 83,220 | $ 84,293 | $ 91,288 | $ 87,418 | $ 85,901 | $ 348,850 | $ 348,900 |
Gross profit | 26,813 | 31,926 | 24,474 | 25,614 | 23,222 | 27,193 | 24,872 | 27,344 | (16,192) | (32,282) |
Net (loss) income | $ (5,088) | $ 487 | $ (5,941) | $ (6,152) | $ (11,277) | $ (8,817) | $ (7,426) | $ (5,319) | $ (16,694) | $ (32,839) |
Net (loss) income per share data: | ||||||||||
Basic (in dollars per share) | $ (0.14) | $ 0.01 | $ (0.16) | $ (0.16) | $ (0.30) | $ (0.24) | $ (0.20) | $ (0.14) | $ (0.44) | $ (0.88) |
Diluted (in dollars per share) | $ (0.14) | $ 0.01 | $ (0.16) | $ (0.16) | $ (0.30) | $ (0.24) | $ (0.20) | $ (0.14) | $ (0.44) | $ (0.88) |
Subsequent Events (Details)
Subsequent Events (Details) - Revolving Credit Facility - Wells Fargo Bank, N.A. - USD ($) | Feb. 27, 2020 | Aug. 03, 2018 | Feb. 01, 2020 |
Subsequent Event [Line Items] | |||
Maximum availability under credit facility | $ 50,000,000 | ||
Borrowing base to maintain, percentage | 10.00% | 10.00% | |
Borrowing base to maintain | $ 3,000,000 | $ 3,000,000 | |
First In Last Out Credit Facility | |||
Subsequent Event [Line Items] | |||
Maximum availability under credit facility | $ 5,000,000 | ||
First In Last Out Credit Facility | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Debt eliminated | $ 5,000,000 | ||
Term Loan Facility | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Maximum availability under credit facility | $ 10,000,000 | ||
Interest rate | 10.00% | ||
Term of credit facility | 5 years | ||
Borrowing base to maintain, percentage | 10.00% | ||
Borrowing base to maintain | $ 3,000,000 | ||
Debt covenant, outstanding borrowing balance threshold, that require minimum levels of EBITDA | $ 5,000,000 |
Uncategorized Items - cbk-20200
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,983,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 4,675,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 1,983,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 4,675,000 |