Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
May 02, 2020 | Jul. 10, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 2, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | STEIN MART INC | |
Entity Central Index Key | 0000884940 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --01-30 | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | SMRT | |
Entity Common Stock, Shares Outstanding | 48,513,878 | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | May 02, 2020 | Feb. 01, 2020 | May 04, 2019 |
Current assets: | |||
Cash and cash equivalents | $ 2,213 | $ 9,499 | $ 21,933 |
Inventories | 266,088 | 248,588 | 274,281 |
Prepaid expenses and other current assets | 27,536 | 23,032 | 31,838 |
Total current assets | 295,837 | 281,119 | 328,052 |
Property and equipment, net of accumulated depreciation and amortization of $282,414, $275,913 and $255,845, respectively | 91,015 | 101,893 | 114,252 |
Operating lease assets | 347,123 | 356,347 | 374,039 |
Other assets | 23,564 | 26,155 | 24,255 |
Total assets | 757,539 | 765,514 | 840,598 |
Current liabilities: | |||
Accounts payable | 103,970 | 87,312 | 114,495 |
Current portion of debt | 197,228 | 0 | 0 |
Current portion of operating lease liabilities | 86,624 | 82,126 | 80,167 |
Accrued expenses and other current liabilities | 66,428 | 80,231 | 84,118 |
Total current liabilities | 454,250 | 249,669 | 278,780 |
Long-term debt | 0 | 141,438 | 152,999 |
Non-current operating lease liabilities | 306,576 | 310,290 | 332,079 |
Other liabilities | 30,422 | 32,179 | 31,335 |
Total liabilities | 791,248 | 733,576 | 795,193 |
COMMITMENTS AND CONTINGENCIES (Note 9) | |||
Shareholders’ (deficit) equity: | |||
Preferred stock - $0.01 par value, 1,000,000 shares authorized; no shares issued or outstanding | 0 | 0 | 0 |
Common stock - $0.01 par value; 100,000,000 shares authorized; 48,497,994, 48,354,642 and 48,065,250 shares issued and outstanding, respectively | 485 | 484 | 481 |
Additional paid-in capital | 61,832 | 61,744 | 60,797 |
Retained deficit | (96,254) | (30,534) | (16,110) |
Accumulated other comprehensive income | 228 | 244 | 237 |
Total shareholders’ (deficit) equity | (33,709) | 31,938 | 45,405 |
Total liabilities and shareholders’ (deficit) equity | $ 757,539 | $ 765,514 | $ 840,598 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 02, 2020 | Feb. 01, 2020 | May 04, 2019 |
Statement of Financial Position [Abstract] | |||
Accumulated depreciation and amortization | $ 282,414 | $ 275,913 | $ 255,845 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 48,497,994 | 48,354,642 | 48,065,250 |
Common stock, shares outstanding (in shares) | 48,497,994 | 48,354,642 | 48,065,250 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 134,273 | $ 314,157 |
Other revenue | 3,909 | 5,225 |
Total revenue | 138,182 | 319,382 |
Cost of merchandise sold | 144,308 | 226,698 |
Selling, general and administrative expenses | 68,325 | 86,136 |
Operating (loss) income | (74,451) | 6,548 |
Interest expense, net | 2,077 | 2,526 |
(Loss) income before income taxes | (76,528) | 4,022 |
Income tax (benefit) expense | (10,811) | 53 |
Net (loss) income | $ (65,717) | $ 3,969 |
Net (loss) earnings per common share: | ||
Basic (dollars per share) | $ (1.38) | $ 0.08 |
Diluted (dollars per share) | $ (1.38) | $ 0.08 |
Weighted-average shares outstanding: | ||
Basic (in shares) | 47,456 | 47,111 |
Diluted (in shares) | 47,456 | 47,556 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (65,717) | $ 3,969 |
Other comprehensive loss, net of tax: | ||
Amounts reclassified from accumulated other comprehensive income | (16) | (16) |
Comprehensive (loss) income | $ (65,733) | $ 3,953 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ (Deficit) Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Deficit | Retained DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) |
Balance, shares at Feb. 02, 2019 | 47,874 | ||||||
Balance at Feb. 02, 2019 | $ 42,953 | $ (2,133) | $ 479 | $ 60,172 | $ (17,951) | $ (2,133) | $ 253 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 3,969 | 3,969 | |||||
Other comprehensive loss, net of tax | (16) | (16) | |||||
Reacquired shares, net, shares | (87) | ||||||
Reacquired shares, net | (103) | $ (1) | (102) | ||||
Issuance of restricted stock, net, shares | 278 | ||||||
Issuance of restricted stock, net | 0 | $ 3 | (3) | ||||
Share-based compensation | 730 | 730 | |||||
Dividends, net of forfeitures | 5 | 5 | |||||
Balance at May. 04, 2019 | 45,405 | $ 481 | 60,797 | (16,110) | 237 | ||
Balance, shares at May. 04, 2019 | 48,065 | ||||||
Balance, shares at Feb. 01, 2020 | 48,355 | ||||||
Balance at Feb. 01, 2020 | 31,938 | $ 484 | 61,744 | (30,534) | 244 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (65,717) | (65,717) | |||||
Other comprehensive loss, net of tax | (16) | (16) | |||||
Common shares issued under employee stock purchase plan, shares | 28 | ||||||
Common shares issued under employee stock purchase plan | 16 | 16 | |||||
Reacquired shares, net, shares | (137) | ||||||
Reacquired shares, net | (82) | $ (2) | (80) | ||||
Issuance of restricted stock, net, shares | 252 | ||||||
Issuance of restricted stock, net | 0 | $ 3 | (3) | ||||
Share-based compensation | 155 | 155 | |||||
Dividends, net of forfeitures | (3) | (3) | |||||
Balance at May. 02, 2020 | $ (33,709) | $ 485 | $ 61,832 | $ (96,254) | $ 228 | ||
Balance, shares at May. 02, 2020 | 48,498 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (65,717) | $ 3,969 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 6,884 | 7,338 |
Share-based compensation | 155 | 730 |
Store closing benefits | (40) | (8) |
Impairment of property and other assets | 10,300 | 0 |
Loss on disposal of property and equipment | 1 | 1 |
Changes in assets and liabilities: | ||
Inventories | (17,500) | (18,397) |
Prepaid expenses and other current assets | (4,689) | (4,311) |
Other assets | 2,822 | (847) |
Accounts payable | 17,079 | 24,951 |
Accrued expenses and other current liabilities | (13,412) | 6,244 |
Operating lease assets and liabilities, net | 4,896 | (2,091) |
Other liabilities | (1,445) | (2,396) |
Net cash (used in) provided by operating activities | (60,666) | 15,183 |
Cash flows from investing activities: | ||
Net acquisition of property and equipment | (1,836) | (1,679) |
Net cash used in investing activities | (1,836) | (1,679) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 109,432 | 102,025 |
Repayments of debt | (53,688) | (102,325) |
Cash dividends paid | (3) | (49) |
Capital lease payments | (459) | (168) |
Proceeds from exercise of stock options | 16 | 0 |
Repurchase of common stock | (82) | (103) |
Net cash provided by (used in) financing activities | 55,216 | (620) |
Net (decrease) increase in cash and cash equivalents | (7,286) | 12,884 |
Cash and cash equivalents at beginning of year | 9,499 | 9,049 |
Cash and cash equivalents at end of period | 2,213 | 21,933 |
Supplemental disclosures of cash flow information: | ||
Income taxes received, net | (4) | (182) |
Interest paid | 2,323 | 2,587 |
Accruals and accounts payable for capital expenditures | $ 164 | $ 414 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
May 02, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for annual audited financial statements. In our opinion, all adjustments (consisting primarily of normal and recurring adjustments) considered necessary for a fair presentation have been included. Due to the seasonality of our business, results for any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended February 1, 2020, filed with the Securities and Exchange Commission (“SEC”) on June 15, 2020. As used herein, the terms “we,” “our,” “us” and “Stein Mart” refer to Stein Mart, Inc. and its wholly-owned subsidiaries. The Company is filing this Quarterly Report on Form 10-Q beyond the deadline for which the Company was originally required to file it in reliance on the filing extension provided by the SEC’s Order under Section 36 of the Securities Exchange Act of 1934, as amended, dated March 4, 2020 (Release No. 34-88318), as modified on March 25, 2020 (Release No. 34-88465) (the “Order”). On April 23, 2020, the Company filed a Current Report on Form 8-K (the “Form 8-K”) to indicate its intention to rely on the Order and delay the filing of its Quarterly Report for the first quarter ended May 2, 2020, which was originally due to be filed with the SEC on or before June 16, 2020. Consistent with the Company’s statements in the Form 8-K, the Company was unable to file the Quarterly Report until July 16, 2020 due to circumstances related to the coronavirus (“COVID-19”) pandemic. In particular, the Company required additional time due to its previously announced reduction in staff, suspension of in-person operations at its corporate headquarters, and temporary closure of its stores for an unknown period of time, as well as other financial and operational concerns associated with or caused by the COVID-19 pandemic. These conditions caused significant disruptions to the Company’s operations requiring key personnel to devote considerable time and resources to respond to the emerging impacts to its business, which limited their availability to complete the Quarterly Report and to thoroughly evaluate the impact of the COVID-19 pandemic. Going Concern During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of COVID-19. The pandemic has significantly impacted the economic conditions in the U.S., accelerating during the first half of March, as federal, state and local governments reacted to the public health crisis, creating significant uncertainties in the U.S. economy. In March 2020, we announced the temporary closure of all stores for an unknown period of time and significant actions taken to mitigate the ongoing impact of the COVID-19 pandemic on our cash flows to protect our business and associates for the long term in response to the crisis. Such actions include targeted reductions in discretionary operating expenses such as advertising and payroll expenses, including furloughing a significant number of our employees and temporarily reducing the payroll of remaining employees, reducing capital expenditures, reducing merchandise receipts, and utilizing funds available under our Revolving Credit Facility and Promissory Note. Further, we have sought and are seeking extended payment terms with all vendors, including merchandise, expense and rent vendors. We started reopening stores on April 23, 2020 as government jurisdictions have allowed, and as of June 15, 2020, we have reopened all of our stores with limited operating hours. We are unable to predict if additional periods of store closures will be needed or mandated. Continued impacts of the pandemic have had a material adverse impact on our revenues, earnings, liquidity and cash flows, and may require significant additional actions in response, including, but not limited to, further employee furloughs, reduced store hours, store closings, expense reductions or discounting of pricing of our products, all in an effort to mitigate such impacts. The extent of the impact of the pandemic on our business and financial results will depend largely on future developments, including the duration of the spread of the outbreak within the U.S., the impact on capital and financial markets and the related impact on consumer confidence and spending, all of which are highly uncertain and cannot be predicted. This situation is rapidly changing and additional impacts to the business may arise that we are not aware of currently. While the disruption is currently expected to be temporary, there is uncertainty around the duration. The ultimate impact of the pandemic on the Company’s results of operations, financial position, liquidity or capital resources cannot be reasonably estimated at this time. The significant risks and uncertainties related to the Company's liquidity described above raise substantial doubt about the Company's ability to continue as a going concern over the next twelve months. The Consolidated Financial Statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities and other commitments in the normal course of business. The accompanying Consolidated Financial Statements do not include any adjustments to reflect the possible future effects of this uncertainty on the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities. Recently Adopted Accounting Standards In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40). This update provides additional guidance to ASU No. 2015-5, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40), which was issued in April 2015. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). This ASU is effective for annual reporting periods beginning on or after December 15, 2019, and interim periods within those annual periods with early adoption permitted in any interim period for which financial statements have not yet been issued. We adopted this ASU as of February 2, 2020. The adoption of this ASU did not have a material effect on our financial condition, results of operations or cash flows. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
May 02, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue from sales of our merchandise is recognized at the time of sale net of any returns, discounts and percentage-off coupons. Our Ecommerce operation records revenue as online orders are fulfilled and provided to a carrier for delivery from our warehouse or directly from our vendors. Store sales include online orders that are fulfilled and shipped or picked up from our stores. Shipping and handling fees charged to customers are also included in total net sales with corresponding costs recorded as cost of merchandise sold as they are considered a fulfillment cost. Future merchandise returns are estimated based on historical experience. Sales tax collected from customers is not recognized as revenue and is included in accrued expenses and other current liabilities on the Consolidated Balance Sheets until paid. Our shoe department and vintage luxury handbag department inventories are each owned by separate single suppliers under supply agreements. Our commissions from the sales in these areas are included in net sales on the Consolidated Statements of Operations. We offer gift and merchandise return cards to our customers. Some cards are electronic and none have expiration dates. At the time gift cards are sold, the issuance is recorded as a liability to customers, and no revenue is recognized. At the time merchandise return cards are issued for returned merchandise, the sale is reversed and a liability to customers is recorded. These card liabilities are reduced and sales revenue is recognized when they are redeemed for merchandise. Card liabilities are included in accrued expenses and other current liabilities in the Consolidated Balance Sheets. Our gift and merchandise return cards may not ultimately be redeemed either in full or partially. We account for this “breakage” of unused amounts as revenue in proportion to the pattern of rights exercised by the customer. Breakage revenue is recorded within other revenue in the Consolidated Statements of Operations. During the 13 weeks ended May 2, 2020 and May 4, 2019, we recognized $0.4 million and $0.6 million, respectively, of breakage revenue on unused gift and merchandise return cards. Stein Mart Credit Cards We offer co-branded and private label credit cards under the Stein Mart brand. These cards are issued by Synchrony Bank (“Synchrony”) in accordance with our Amended and Restated Co-Brand and Private Label Credit Card Consumer Program Agreement (the “Agreement”). Synchrony extends credit directly to card holders, provides all servicing for the credit card accounts and bears all risk of credit and fraud losses. On August 21, 2019, we entered into an amendment to our Agreement with Synchrony whereby Synchrony waived its rights to require us to post cash reserves to cure our failure to satisfy one or more of the quarterly financial covenants specified in the Agreement for periods through October 31, 2020 (the “Exemption Period”). As consideration for Synchrony’s entry into this amendment, we agreed to reduce the amount of fees paid to us by Synchrony under the Agreement from September 1, 2019 through the end of the Exemption Period. We receive royalty revenue from Synchrony based on card usage in our stores and at other retailers for the Stein Mart Mastercard. We also receive revenues for new accounts and gain share based on the profitability of the overall program. Credit card revenue is recorded within other revenue in the Consolidated Statements of Operations. These revenues are recorded as they are earned based on the occurrence of the various program activities and typically represent the majority of other revenue. Once a card is activated, the card holders are eligible to participate in the Stein Mart SMart Rewards Program, which provides for an incentive to card holders in the form of reward points for certificates (Stein Mart SMart Cash). Through June 9, 2020, certificates were issued in $10 increments, which was equivalent to 1,000 points. Commencing on June 10, 2020, certificates are issued in $5 increments, which is equivalent to 500 points. Points are valued at the stand-alone selling price of the certificates issued. We defer a portion of our revenue for loyalty points earned by customers using the co-branded and private label cards and recognize the revenue as the certificates earned are used to purchase merchandise by our customers. Certificates may not ultimately be redeemed either in full or partially. We account for this “breakage” of unused amounts as revenue in proportion to the pattern of rights exercised by the customer. Breakage revenue is recorded within other revenue in the Consolidated Statements of Operations. During the 13 weeks ended May 2, 2020 and May 4, 2019, we recognized $2.6 million and $1.9 million, respectively, of breakage revenue on unused credit card reward certificates and points. Stein Mart card holders also receive special promotional offers and advance notice of in-store sales events. Multi-tender Loyalty Rewards Beginning February 20, 2020, in certain regions, we now offer the multi-tender customer to participate in the Stein Mart Rewards Program, which also provides for an incentive to non Stein Mart card holders in the form of reward points for certificates. Certificates are issued in $5 increments, which is equivalent to 500 points. Points are valued at the stand-alone selling price of the certificates issued. We defer a portion of our revenue for multi-tender loyalty points earned by customers using tenders other than the co-branded and private label cards and recognize the revenue as the certificates earned are used to purchase merchandise by our customers. Certificates may not ultimately be redeemed either in full or partially. We account for this “breakage” of unused amounts as revenue in proportion to the pattern of rights exercised by the customer. Breakage revenue is recorded within other revenue in the Consolidated Statements of Operations. During the 13 weeks ended May 2, 2020, there was no breakage revenue on unused multi-tender reward certificates and points due to the newness of the program. Revenue The following table sets forth our revenue by type of contract (in thousands): 13 Weeks Ended 13 Weeks Ended Store sales (1) $ 122,849 $ 293,289 Ecommerce sales (2) 8,871 13,744 Licensee commissions (3) 2,553 7,124 Net sales 134,273 314,157 Credit card revenue (4) 817 2,564 Breakage revenue (5) 3,010 2,538 Other 82 123 Other revenue 3,909 5,225 Total revenue $ 138,182 $ 319,382 _______________ (1) Store sales are net of any returns, discounts and percentage-off coupons. Store sales include $11.4 million and $3.9 million sales generated online and either shipped from store or picked up in store by our customers for the 13 weeks ended May 2, 2020 and May 4, 2019, respectively. (2) Ecommerce sales are net of any returns, discounts and percentage-off coupons. Ecommerce sales are online orders fulfilled from our warehouse or shipped directly from our vendors. (3) Licensed department commissions are net of any returns. (4) Credit card revenue earned from Synchrony programs, partially offset by rewards program costs. (5) Breakage revenue earned on unused gift and merchandise return cards and unused certificates and loyalty reward points. The following table sets forth the gross-up of the sales return reserve (in thousands): May 2, 2020 February 1, 2020 May 4, 2019 Reserve for sales returns $ (3,652) $ (3,763) $ (6,286) Cost of inventory returns 2,576 2,160 3,372 The following table sets forth the contract liabilities and their relationship to revenue (in thousands): May 2, 2020 February 1, 2020 May 4, 2019 Deferred revenue contracts $ (9,032) $ (9,424) $ (10,617) Gift card liability (10,154) (11,488) (9,631) Credit card reward liability (5,743) (7,261) (5,510) Liability for deferred revenue $ (24,929) $ (28,173) $ (25,758) The following table sets forth a rollforward of the amounts included in contract liabilities for the periods presented (in thousands): 13 Weeks Ended 13 Weeks Ended Beginning balance $ 28,173 $ 28,846 Current period gift cards sold and loyalty reward points earned 4,261 7,501 Net sales from redemptions (1) (4,103) (7,651) Breakage and amortization (2) (3,402) (2,938) Ending balance $ 24,929 $ 25,758 _______________ (1) $2.8 million and $4.4 million in net sales from redemptions were included in the beginning balance of contract liabilities for the 13 weeks ended May 2, 2020 and May 4, 2019, respectively. (2) $3.2 million and $2.8 million in breakage and amortization were included in the beginning balance of contract liabilities for the 13 weeks ended May 2, 2020 and May 4, 2019, respectively. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
May 02, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net The following table sets forth property and equipment, net (in thousands): May 2, 2020 February 1, 2020 May 4, 2019 Fixtures, equipment and software $ 243,867 $ 245,034 $ 239,522 Leasehold improvements 129,562 132,772 130,575 Total 373,429 377,806 370,097 Accumulated depreciation and amortization (282,414) (275,913) (255,845) Property and equipment, net $ 91,015 $ 101,893 $ 114,252 As discussed in Note 1. "Basis of Presentation", the COVID-19 pandemic impacted us significantly, including causing us to close all of our stores starting in March 2020. We commenced reopening our stores on April 23, 2020, and by June 15, 2020, all of our stores had reopened. Based on an impairment analysis performed, during the 13 weeks ended May 2, 2020, we recorded asset impairment charges in selling, general and administrative ("SG&A") expenses of $5.2 million to reduce the carrying value of fixtures, equipment and leasehold improvements held for use and certain other assets in under-performing stores to their respective estimated fair values. Store assets are considered Level 3 assets in the fair value hierarchy as the inputs for calculating the fair value of these assets are based on the best information available, including prices for similar assets. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
May 02, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities The following table sets forth the major components of accrued expenses and other current liabilities (in thousands): May 2, 2020 February 1, 2020 May 4, 2019 Property taxes $ 20,479 $ 20,532 $ 18,557 Unredeemed gift and merchandise return cards 10,154 11,488 9,631 Compensation and employee benefits 6,046 7,448 6,691 Accrued vacation 2,546 3,909 4,316 Other 27,203 36,854 44,923 Accrued expenses and other current liabilities $ 66,428 $ 80,231 $ 84,118 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
May 02, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Dividends During the 13 weeks ended May 2, 2020 and May 4, 2019, respectively, there were no cash dividends declared. Stock Repurchase Plan During the 13 weeks ended May 2, 2020 and May 4, 2019, we repurchased 137,270 shares and 102,543 shares, respectively, of our common stock in the open market at a total cost of $0.1 million in each period, respectively. Stock repurchases during these periods were for taxes due on the vesting of employee stock awards. As of May 2, 2020, there are 366,889 shares that can be repurchased pursuant to the Board of Directors’ current authorization. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 3 Months Ended |
May 02, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | Earnings (Loss) per Share Basic earnings (loss) per share ("EPS”) is computed by dividing net income (loss) by the basic weighted-average number of common shares outstanding for the period. Diluted EPS is calculated by considering the impact of potential common stock equivalents on the weighted-average number of common shares outstanding. The following table sets forth a reconciliation of basic weighted-average number of common shares to diluted weighted-average number of common shares (in thousands): 13 Weeks Ended 13 Weeks Ended Basic weighted-average shares outstanding 47,456 47,111 Incremental shares from share-based compensation plans — 445 Diluted weighted-average shares outstanding 47,456 47,556 For the 13 weeks ended May 2, 2020, there were 0.3 million shares excluded from the diluted EPS calculation because the impact of their assumed exercise would be anti-dilutive due to a net loss in that period. These shares are comprised of a mix of restricted stock awards and restricted stock units. For periods of net loss, basic and diluted EPS are the same, as the assumed conversion of stock-based awards are antidilutive. Dilutive weighted average shares outstanding also excludes approximately 1.9 million and 2.9 million potential common stock equivalents that were out-of-the-money during the 13 weeks ended May 2, 2020 and May 4, 2019, respectively. These shares are comprised of a mix of stock options, restricted stock awards, and restricted stock units. Stock options excluded were those that had exercise prices greater than the average market price of the common shares such that inclusion would have been antidilutive. Restricted stock awards and units were shares that were antidilutive as calculated using the treasury stock method. |
Debt
Debt | 3 Months Ended |
May 02, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table sets forth our debt (in thousands): May 2, 2020 February 1, 2020 May 4, 2019 Revolving credit facility $ 152,000 $ 107,100 $ 118,800 Term loan 35,000 35,000 35,000 Promissory notes 10,844 — — Total debt 197,844 142,100 153,800 Current portion (1) (197,228) — — Debt issuance costs (616) (662) (801) Long-term debt $ — $ 141,438 $ 152,999 _______________ (1) Due to the uncertainties concerning the Company's future liquidity and on-going covenant compliance as a result of the impact of the COVID-19 pandemic on the Company's business as discussed in more detail in Note 1. "Basis of Presentation", the amount outstanding under our Revolving Credit Facility and Term Loan are classified as a current liability in the consolidated balance sheet as of May 2, 2020. The Promissory Notes are also considered current liabilities. Revolving Credit Facility On February 3, 2015, we entered into a $250.0 million senior secured revolving credit facility pursuant to a second amended and restated credit agreement (the “Credit Agreement”) with Wells Fargo Bank (“Wells Fargo”), with an original maturity of February 2020 (the “Revolving Credit Facility”). Borrowings under the Revolving Credit Facility were initially used for a special dividend but are subsequently being used for working capital, capital expenditures and other general corporate purposes. During 2017, debt issuance costs of $0.4 million were associated with the Revolving Credit Facility. Debt issuance costs associated with the Credit Agreement were being amortized over its respective term. On February 19, 2018, we entered into Amendment No. 1 (the “Credit Agreement Amendment”) to the Credit Agreement with Wells Fargo. The Credit Agreement Amendment provided for, among other things, an Accommodation Period (as defined in the Credit Agreement Amendment) during which we were not required to meet the Fixed Charge Coverage Ratio (as defined in the Credit Agreement). This change permitted us to borrow the full amount of the then applicable borrowing base until we delivered our financial statements for the Measurement Period (as defined in the Credit Agreement) ended February 28, 2018. Pursuant to the Credit Agreement Amendment, a Cash Dominion Event (as defined in the Credit Agreement Amendment) occurred as of the effective date of the Credit Agreement Amendment and at all times thereafter. Because of the Cash Dominion Event, all of our cash receipts were swept daily to repay outstanding borrowings under the Credit Agreement and the amount outstanding under the Credit Agreement was classified as a short-term obligation. As noted below, the Third Credit Agreement Amendment removed the Cash Dominion Event effective September 18, 2018. On March 14, 2018, we entered into Amendment No. 2 (the “Second Credit Agreement Amendment”) to the Credit Agreement with Wells Fargo. The Second Credit Agreement Amendment provided for, among other things, the following: (1) the $25.0 million Tranche A-1 Revolving Loans (as defined in the Second Credit Agreement Amendment) were repaid in full with the proceeds of the Term Loan (as defined below); (2) the entry into the Intercreditor Agreement (as defined below); and (3) certain other modifications and updates to coordinate the Revolving Credit Facility with the Term Loan. On September 18, 2018, we entered into Amendment No. 3 (the “Third Credit Agreement Amendment”) to the Credit Agreement with Wells Fargo. The Third Credit Agreement Amendment provided for, among other things, the following: (1) the increase of Aggregate Tranche A Revolving Loan Commitments (as defined in the Second Credit Agreement Amendment) from $225.0 million to $240.0 million; (2) an extension of the maturity date of the Revolving Credit Facility to the earlier of (a) the maturity date of the Term Loan Agreement (as defined below) or (b) September 18, 2023; and (3) the elimination of Cash Dominion Event status and a change in Cash Dominion to be triggered only in the event of (a) the occurrence and continuance of any Event of Default or (b) Excess Availability of less than (A) 10.0 percent of the loan cap at any time or (B) 12.5 percent of the loan cap for three consecutive business days. During 2018, debt issuance costs of less than $0.1 million were associated with the Third Credit Agreement Amendment and are being amortized over its term. Debt issuance costs of $0.1 million remaining under the initial Credit Agreement are being amortized over the new term of the Third Credit Agreement Amendment. The elimination of cash dominion status changed the debt classification from a short-term to long-term obligation at that time. On February 26, 2019, we entered into Amendment No. 4 (the “Fourth Credit Agreement Amendment”) to the Credit Agreement with Wells Fargo. The Fourth Credit Agreement Amendment provided for, among other things, a modification to the definition of “Capital Expenditures” and “Permitted Indebtedness” as defined in the Fourth Credit Agreement Amendment. During the first quarter of 2020, due to the financial and operating impacts of the COVID-19 pandemic, certain Events of Default occurred that were subsequently waived on June 11, 2020, when we entered into Amendment No. 5 (the "Fifth Credit Agreement Amendment") to the Credit Agreement with Wells Fargo. The Fifth Credit Agreement Amendment provides for, among other things, the waiver of certain Events of Default and the modification of certain provisions of the Credit Agreement subject to the conditions set forth in the Fifth Credit Agreement Amendment. The Events of Default, which include the presence of a “going concern” explanatory paragraph in the report of our independent registered public accounting firm on our financial statements as of and for the year ended February 1, 2020, are further defined under Specified Defaults in the Fifth Credit Agreement Amendment. See Note 1, "Basis of Presentation" of the Notes to Consolidated Financial Statements for further discussion of our going concern evaluation. Due to the uncertainties concerning the Company's future liquidity and on-going covenant compliance as a result of the impact of the COVID-19 pandemic on the Company's business, the amount outstanding under our Credit Facilities is classified as a current obligation in the consolidated balance sheet as of May 2, 2020. Pursuant to the Fifth Credit Agreement Amendment, a Cash Dominion Event, as defined in the Fifth Credit Agreement Amendment, occurred as of the effective date of such amendment through and including the first anniversary of the Fifth Credit Agreement Amendment, and at all times thereafter unless certain conditions are met, as further set forth in the Fifth Credit Agreement Amendment. As a result of the Cash Dominion Event, all of our cash receipts are swept daily to repay borrowings under the Credit Agreement. The Credit Agreement matures in September 2023; however, as a result of the Cash Dominion Event, the amount outstanding under the Credit Agreement is considered a short-term obligation as of the amendment date until the conditions to remedy the Cash Dominion Event have occurred, as defined, but not before the first anniversary of the Fifth Credit Agreement Amendment. We manage our cash on a daily basis and borrow against the Credit Agreement based on our daily cash disbursement needs. As long as we remain within the terms of the Credit Agreement, the lenders are obligated to allow us to draw up to our borrowing availability. The Fifth Credit Agreement Amendment revised the definition of Excess Availability to exclude past-due payables that are greater than sixty (60) days past due, and added a financial covenant requiring minimum Excess Availability equal to the greater of (i) five percent (5%) of the Combined Loan Cap (as defined in the Credit Agreement) and (ii) $10.0 million during the Accommodation Period, which is defined as the date of the Fifth Credit Agreement Amendment through and including October 3, 2020 (the “Accommodation Period”), and thereafter requiring minimum Excess Availability equal to the greater of (i) ten percent (10%) of the Combined Loan Cap (as defined in the Credit Agreement) and (ii) $20.0 million. Additionally, the Fifth Credit Agreement Amendment added a definition for Liquidity (as defined in the Fifth Credit Agreement Amendment), which includes, in addition to Excess Availability (less required minimum Excess Availability), amounts available in Blocked Accounts (as defined in the Credit Agreement) and amounts available for borrowing under the Trust (as defined below) and further provided for our provision of a Budget (as defined in the Fifth Credit Agreement Amendment) to Wells Fargo. Additional Events of Default under the Credit Agreement include (i) certain material deviations from the Budget calculated on a rolling 4-week basis, (ii) certain material deviations from the Budget on a rolling basis, which can be less than 4 weeks if we have failed to maintain Liquidity of $12.5 million, and (iii) failure to maintain Liquidity of $7.5 million. As a result of the Fifth Credit Agreement Amendment, LIBOR loans bear interest equal to the adjusted LIBOR plus the applicable margin (175 to 225 basis points) depending on the quarterly average excess availability for the immediately preceding fiscal quarter. Base Rate Loans bear interest equal to the highest of (a) the Federal Funds Rate plus 0.50 percent, (b) the adjusted LIBOR plus 1.00 percent, or (c) the Wells Fargo “prime rate,” plus the Applicable Margin (75 to 125 basis points). The Fifth Credit Agreement Amendment provides that during the Accommodation Period, the applicable margin will be 225 and 125 for LIBOR loans and Base Rate Loans, respectively. The total amount available for borrowings under the Credit Agreement is the lesser of $240.0 million or 100 percent of eligible credit card receivables and the net recovery percentage of eligible inventories less reserves. On May 2, 2020, in addition to outstanding borrowings under the Credit Agreement, we had $7.9 million of outstanding letters of credit and our Excess Availability (as defined in the Credit Agreement) was $22.4 million. The Credit Agreement contains customary representations and warranties, affirmative and negative covenants (including the requirement of a 1.0 to 1.0 consolidated Fixed Charge Coverage Ratio upon the occurrence and during the continuance of any Covenant Compliance Event, as defined in the Credit Agreement), and events of default for facilities of this type and is cross-collateralized and cross-defaulted. Collateral for the Revolving Credit Facility consists of substantially all of our personal property. Wells Fargo has a first lien on all collateral other than equipment. Subsequent to the expiration of the Accommodation Period as set forth in the Fifth Credit Agreement Amendment, borrowings under the Credit Agreement are either base rate loans or London Interbank Offered Rate (“LIBOR”) loans. LIBOR loans bear interest equal to the adjusted LIBOR plus the applicable margin (125 to 175 basis points) depending on the quarterly average excess availability. Base Rate Loans bear interest equal to the highest of (a) the Federal Funds Rate plus 0.50 percent, (b) the adjusted LIBOR plus 1.00 percent, or (c) the Wells Fargo “prime rate,” plus the Applicable Margin (25 to 75 basis points). The weighted average interest rate for the amount outstanding under the Credit Agreement was 2.41 percent as of May 2, 2020. Term Loan On March 14, 2018, we entered into a Term Loan Credit Agreement with Gordon Brothers Finance Company, as administrative agent (in such capacity, the “Term Loan Agent”), and Gordon Brothers Finance Company, LLC, as lender (the “Term Loan Agreement”). The Term Loan Agreement provided for a term loan in the amount of $50.0 million (the “Term Loan”). Debt issuance costs associated with the Term Loan were capitalized in the amount of $0.9 million and are being amortized over the term of the Term Loan. The net proceeds of $49.1 million from the Term Loan were used to permanently pay off the $25.0 million Tranche A-1 Revolving Loan (as defined in the Credit Agreement) and to pay down the Revolving Credit Facility. After utilizing proceeds from the Term Loan for repayment of amounts outstanding under the existing Tranche A-1 Revolving Loans, the Term Loan resulted in an increase in our Excess Availability of approximately $25.0 million under the Credit Agreement. The Term Loan originally matured on the earlier of (1) the termination date specified in our Credit Agreement, as such date may be extended with the consent of the Term Loan Agent or in accordance with the Intercreditor Agreement (defined below), and (2) March 14, 2020. On September 18, 2018, we entered into Amendment No. 2 (the “Second Term Loan Amendment”) to the Term Loan with Gordon Brothers Finance Company. The Second Term Loan Amendment provided for, among other things, the following: (1) the reduction of the maximum amount of the Term Loan to $35.0 million; (2) an extension of the maturity date of the Term Loan Agreement to the earlier of (a) the termination date specified in the Revolving Credit Facility (as defined in the Third Credit Agreement Amendment), and (b) September 18, 2023; (3) the reduction of the non-default interest rate applicable to the Term Loan under the Term Loan Agreement to a fluctuating rate of interest equal to three-month LIBOR (with a floor of 1.5%) plus 8.25% per annum; and (4) the elimination of Cash Dominion Event status and a change in Cash Dominion to be triggered only in the event of (a) the occurrence and continuance of any Event of Default or (b) Excess Availability of less than (A) 10.0 percent of the Revolving Loan Cap at any time or (B) 12.5 percent of the Revolving Loan Cap for three consecutive Business Days. During 2018, debt issuance costs of approximately $0.3 million were associated with the Term Loan and are being amortized over its term. The elimination of cash dominion status changed the debt classification from a short-term to long-term obligation at that time. On February 26, 2019, we entered into Amendment No. 3 (the “Third Term Loan Amendment”) to the Term Loan Agreement. The Third Term Loan Amendment provided for, among other things, a modification to the definition of “Capital Expenditures” and “Permitted Indebtedness” as defined in the Third Term Loan Amendment. On June 11, 2020, we entered into the Fourth Amendment to the Term Loan Credit Agreement and Waiver (the "Fourth Term Loan Amendment") with Gordon Brothers Finance Company. The Fourth Term Loan Amendment provides for, among other things, the waiver of certain Events of Default and the modification of certain provisions of the Term Loan, subject to the conditions set forth in the Fourth Term Loan Amendment. The Events of Default, which include the presence of a “going concern” explanatory paragraph in the report of our independent registered public accounting firm on our financial statements as of and for the year ended February 1, 2020, are further defined under Specified Defaults in the Fourth Term Loan Amendment. See Note 1, "Basis of Presentation" of the Notes to Consolidated Financial Statements for further discussion of our going concern evaluation. Due to the uncertainties concerning the Company's future liquidity and on-going covenant compliance as a result of the impact of the COVID-19 pandemic on the Company's business, the amount outstanding under our Term Loan is classified as a current liability in the consolidated balance sheet as of May 2, 2020. The Fourth Term Loan Amendment revised the definition of Revolving Excess Availability to exclude past-due payables that are greater than sixty (60) days past due, and added a financial covenant requiring minimum Revolving Excess Availability equal to the greater of (i) five percent (5%) of the Combined Loan Cap (as defined in the Term Loan Agreement) and (ii) $10.0 million during the Accommodation Period, which is defined as the date of the Fourth Term Loan Amendment through and including October 3, 2020 (the “Term Loan Accommodation Period”), and thereafter requiring minimum Revolving Excess Availability equal to the greater of (i) ten percent (10%) of the Combined Loan Cap (as defined in the Term Loan Agreement) and (ii) $20.0 million. Additionally, the Fourth Term Loan Amendment added a definition for Liquidity (as defined in the Fourth Term Loan Amendment), which includes, in addition to Revolving Excess Availability (less required minimum Revolving Excess Availability), amounts available in Blocked Accounts (as defined in the Term Loan Agreement) and amounts available for borrowing under the Trust (as defined below) and further provided for our provision of a Budget (as defined in the Fourth Term Loan Amendment) to Gordon Brothers Finance Company. Additional Events of Default under the Credit Agreement include (i) certain material deviations from the Budget calculated on a rolling 4-week basis, (ii) certain material deviations from the Budget on a rolling basis, which can be less than 4 weeks if we have failed to maintain Liquidity of $12.5 million, and (iii) failure to maintain Liquidity of $7.5 million. The Term Loan Agent and Wells Fargo have entered into an Intercreditor Agreement dated as of March 14, 2018 (the “Intercreditor Agreement”), acknowledged by us under the Term Loan and the Credit Agreement. The Intercreditor Agreement was also amended on September 18, 2018 to incorporate the amendment to the Revolving Credit Facility and the Term Loan Agreement , and subsequently amended on June 11, 2020 to incorporate the Fifth Credit Agreement Amendment to the Revolving Credit Facility and Fourth Term Loan Amendment to the Term Loan Agreement. The Term Loan Agreement contains customary representations and warranties, events of default, and affirmative and negative covenants, which include the retention of the existing minimum 1.0 to 1.0 consolidated fixed charge coverage ratio under the Credit Agreement during periods where Revolving Excess Availability (as defined in the Term Loan Agreement) is less than the greater of $20.0 million or 10.0 percent of Combined Loan Cap (as defined in the Term Loan Agreement) for four consecutive business days or during the occurrence of an Event of Default (as defined in the Term Loan Agreement). The Term Loan is secured by a second lien security interest (subordinate only to the liens securing the Credit Agreement) on all assets securing the Credit Agreement (which consist of substantially all of our personal property), except furniture, fixtures and equipment and intellectual property, upon which the Term Loan lenders have a first lien security interest. If at any time prior to the first anniversary date of the Term Loan, the Revolving Excess Availability is less than $20.0 million, if requested by the Term Loan Agent, the Term Loan will also be secured by a first lien on leasehold interests in real property with an aggregate value of not less than $10.0 million, and the Credit Agreement will be secured by a second lien on such leasehold interests. The Term Loan is subject to certain mandatory prepayments if an Event of Default (as defined in the Term Loan Agreement) exists. If no such Event of Default exists, proceeds of the Term Loan priority collateral are to be applied to amounts outstanding under the Credit Agreement. The weighted average interest rate for the amount outstanding under the Term Loan was 9.83 percent as of May 2, 2020. Promissory Notes We believe we can borrow, on a short-term basis and subject to the formal agreement of the lender, amounts up to 90 percent of the cash surrender value of the life insurance policies related to our executive deferred compensation plans to provide additional liquidity if needed. At May 2, 2020, the cash surrender value of our life insurance policies was approximately $11.1 million. On March 23, 2020, we borrowed $9.9 million on the cash surrender value of our life insurance policies, which represented the full amount available to be borrowed, at a rate of 3.56 percent per annum, which accrues daily on the average loan balance for the number of days the loan is outstanding prior to the date of repayment (the "Promissory Note"). The proceeds of the Promissory Note were used to pay down borrowings under the existing credit agreement, which provided additional availability under that agreement. The entire unpaid principal and accrued interest balance is due and payable on or before September 30, 2020. On April 6, 2020, we executed a promissory note to borrow $1.0 million for our property insurance premiums through Bank Direct Capital Finance at a rate of 4.25 percent per annum. The entire unpaid principal and accrued interest balance is due and payable on or before February 1, 2021. Subsequent to quarter end, on July 9, 2020, we executed a promissory note to borrow $1.9 million for various insurance premiums through Bank Direct Capital Finance at a rate of 4.25 percent per annum. The entire unpaid principal and accrued interest balance is due and payable on or before March 1, 2021. U.S. Small Business Administration Loan Subsequent to quarter-end on June 23, 2020, we entered into an agreement to receive a U.S. Small Business Administration Loan (“SBA Loan”) from Harvest Small Business Finance, LLC related to the COVID-19 pandemic in the amount of $10.0 million, which we received on June 30, 2020. The SBA Loan has a fixed interest rate of 1.00 percent per annum and a maturity date five years from the date on which the Company applies for loan forgiveness under section 1106 of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). Pursuant to the terms of the SBA Loan, the Company may apply for forgiveness of the amount due on the SBA Loan in an amount equal to the sum of the following costs incurred by the Company during the period commencing on the date of first disbursement of the Loan and ending upon the earlier of (i) 24 weeks after the date of the first disbursement of the Loan and (ii) December 31, 2020: payroll costs, payment on a covered rent obligation, and any covered utility payment. The amount of SBA Loan forgiveness shall be calculated in accordance with the requirements of the Paycheck Protection Program, including the provisions of Section 1106 of the CARES Act, although no more than 40 percent of the amount forgiven can be attributable to non-payroll costs. |
Leases
Leases | 3 Months Ended |
May 02, 2020 | |
Leases [Abstract] | |
Leases | Leases We lease all our retail store locations, support facilities and certain equipment under operating leases. Our store leases have varying terms and are generally for 10 years with options to extend the lease term for two or more 5-year periods. Annual store rent is generally comprised of a fixed minimum amount plus an insignificant contingent amount based on a percentage of sales in excess of specified levels. Most store leases also require additional payments covering real estate taxes, common area costs and insurance. Certain lease agreements contain rent holidays, and/or rent escalation clauses. Except for contingent rent, we recognize rent expense on a straight-line basis over the lease term. Contingent rent, determined based on a percentage of sales in excess of specified levels, is recognized as rent expense when achievement of the specified sales that triggers the contingent rent is probable. Construction allowances and other such lease incentives are recorded on the Consolidated Balance Sheets and are amortized on a straight-line basis as a reduction of rent expense. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement or modification date in determining the present value of lease payments. In addition to the operating lease assets presented on the Consolidated Balance Sheets, assets under finance leases of $6.9 million are included in property and equipment, net on the Consolidated Balance Sheets as of May 2, 2020. The remaining finance lease obligation is split between accrued expenses and other current liabilities for the short-term portion and other liabilities for the long-term portion on the Consolidated Balance Sheets. As discussed in Note 1. "Basis of Presentation", the COVID-19 pandemic impacted us significantly, including causing us to close all of our stores starting in March 2020. We commenced reopening our stores on April 23, 2020, and by June 15, 2020, all of our stores had reopened. During the period of store closures, we were able to negotiate with many of our landlords to defer rent amounts due during the closure period to either a period of month(s) following the reopening of the stores, or in some cases, extending the period of the respective lease term by the amount of time that the stores were closed and paying rent for those future periods. In the case where the lease term was extended, we accounted for this as a lease modification under the current GAAP guidance. We elected the practical expedient to not evaluate whether a deferral of rent within the current term is a lease modification. The total rent that was deferred for lease amendments that have been executed through May 2, 2020 was $4.2 million. Further, for certain of our stores, the COVID-19 pandemic had a significant impact to the underlying asset values. Based on an impairment analysis performed during the 13 weeks ended May 2, 2020, we recorded asset impairment charges in SG&A of $5.1 million to reduce the carrying value of certain operating lease assets to their respective estimated fair value. Operating lease assets are considered Level 3 assets in the fair value hierarchy as the inputs for calculating the fair value of these assets are based on the best information available, including market rents for similar assets. The following table summarizes our classification of lease cost (in thousands): Statement of Operations Location 13 Weeks Ended Operating lease cost (1) Selling, general and administrative expenses $ 24,266 Finance lease cost: Amortization of finance lease assets Selling, general and administrative expenses 359 Interest on lease liabilities Interest expense, net 62 Variable lease cost Selling, general and administrative expenses 9,692 Net lease cost $ 34,379 _______________ (1) Includes lease costs for short-term leases, which are immaterial. As of May 2, 2020, the following table summarizes the maturity of our lease liabilities (in thousands): Operating Finance Total Remainder of 2020 $ 99,333 $ 1,451 $ 100,784 2021 94,171 1,525 95,696 2022 80,653 1,259 81,912 2023 65,954 489 66,443 2024 52,127 1 52,128 Thereafter 77,062 — 77,062 Total lease payments 469,300 4,725 474,025 Less: Interest (76,100) (433) (76,533) Present value of lease liabilities $ 393,200 $ 4,292 $ 397,492 The following table summarizes our lease term and discount rate: May 2, 2020 Weighted-average remaining lease term (years): Operating leases 5 years Finance leases 3 years Weighted-average discount rate: Operating leases 5.1 % Finance leases 7.2 % The following table summarizes the other information related to our lease liabilities (in thousands): 13 Weeks Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 19,302 Operating cash flows from finance leases 62 Financing cash flows from finance leases 459 |
Leases | Leases We lease all our retail store locations, support facilities and certain equipment under operating leases. Our store leases have varying terms and are generally for 10 years with options to extend the lease term for two or more 5-year periods. Annual store rent is generally comprised of a fixed minimum amount plus an insignificant contingent amount based on a percentage of sales in excess of specified levels. Most store leases also require additional payments covering real estate taxes, common area costs and insurance. Certain lease agreements contain rent holidays, and/or rent escalation clauses. Except for contingent rent, we recognize rent expense on a straight-line basis over the lease term. Contingent rent, determined based on a percentage of sales in excess of specified levels, is recognized as rent expense when achievement of the specified sales that triggers the contingent rent is probable. Construction allowances and other such lease incentives are recorded on the Consolidated Balance Sheets and are amortized on a straight-line basis as a reduction of rent expense. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement or modification date in determining the present value of lease payments. In addition to the operating lease assets presented on the Consolidated Balance Sheets, assets under finance leases of $6.9 million are included in property and equipment, net on the Consolidated Balance Sheets as of May 2, 2020. The remaining finance lease obligation is split between accrued expenses and other current liabilities for the short-term portion and other liabilities for the long-term portion on the Consolidated Balance Sheets. As discussed in Note 1. "Basis of Presentation", the COVID-19 pandemic impacted us significantly, including causing us to close all of our stores starting in March 2020. We commenced reopening our stores on April 23, 2020, and by June 15, 2020, all of our stores had reopened. During the period of store closures, we were able to negotiate with many of our landlords to defer rent amounts due during the closure period to either a period of month(s) following the reopening of the stores, or in some cases, extending the period of the respective lease term by the amount of time that the stores were closed and paying rent for those future periods. In the case where the lease term was extended, we accounted for this as a lease modification under the current GAAP guidance. We elected the practical expedient to not evaluate whether a deferral of rent within the current term is a lease modification. The total rent that was deferred for lease amendments that have been executed through May 2, 2020 was $4.2 million. Further, for certain of our stores, the COVID-19 pandemic had a significant impact to the underlying asset values. Based on an impairment analysis performed during the 13 weeks ended May 2, 2020, we recorded asset impairment charges in SG&A of $5.1 million to reduce the carrying value of certain operating lease assets to their respective estimated fair value. Operating lease assets are considered Level 3 assets in the fair value hierarchy as the inputs for calculating the fair value of these assets are based on the best information available, including market rents for similar assets. The following table summarizes our classification of lease cost (in thousands): Statement of Operations Location 13 Weeks Ended Operating lease cost (1) Selling, general and administrative expenses $ 24,266 Finance lease cost: Amortization of finance lease assets Selling, general and administrative expenses 359 Interest on lease liabilities Interest expense, net 62 Variable lease cost Selling, general and administrative expenses 9,692 Net lease cost $ 34,379 _______________ (1) Includes lease costs for short-term leases, which are immaterial. As of May 2, 2020, the following table summarizes the maturity of our lease liabilities (in thousands): Operating Finance Total Remainder of 2020 $ 99,333 $ 1,451 $ 100,784 2021 94,171 1,525 95,696 2022 80,653 1,259 81,912 2023 65,954 489 66,443 2024 52,127 1 52,128 Thereafter 77,062 — 77,062 Total lease payments 469,300 4,725 474,025 Less: Interest (76,100) (433) (76,533) Present value of lease liabilities $ 393,200 $ 4,292 $ 397,492 The following table summarizes our lease term and discount rate: May 2, 2020 Weighted-average remaining lease term (years): Operating leases 5 years Finance leases 3 years Weighted-average discount rate: Operating leases 5.1 % Finance leases 7.2 % The following table summarizes the other information related to our lease liabilities (in thousands): 13 Weeks Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 19,302 Operating cash flows from finance leases 62 Financing cash flows from finance leases 459 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
May 02, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesWe are involved in various routine legal proceedings incidental to the conduct of our business. While some of these matters could be material to our results of operations or cash flows for any period if an unfavorable outcome results, we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our overall financial condition. During the 13 weeks ended May 2, 2020 and May 4, 2019, respectively, we did not accrue for any actual or anticipated loss contingencies. |
Income Taxes
Income Taxes | 3 Months Ended |
May 02, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe provision for income taxes is based on a current estimate of the annual effective tax rate and the impact of discrete items recorded during the quarter. The 14.1 percent effective tax rate for the quarter differs from the statutory rate primarily due to the valuation allowance and changes in tax law related to the CARES Act. Our effective income tax rate may fluctuate from quarter to quarter as a result of a variety of factors, including changes in our assessment of certain tax contingencies, valuation allowances, changes in tax law, outcomes of administrative audits, the impact of discrete items, and the mix of earnings. Our income tax benefit for 13 weeks ended May 2, 2020, reflects $8.0 million in federal income tax receivables and a $2.9 million net federal income tax refund related to the CARES Act. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
May 02, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for annual audited financial statements. In our opinion, all adjustments (consisting primarily of normal and recurring adjustments) considered necessary for a fair presentation have been included. Due to the seasonality of our business, results for any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended February 1, 2020, filed with the Securities and Exchange Commission (“SEC”) on June 15, 2020. As used herein, the terms “we,” “our,” “us” and “Stein Mart” refer to Stein Mart, Inc. and its wholly-owned subsidiaries. The Company is filing this Quarterly Report on Form 10-Q beyond the deadline for which the Company was originally required to file it in reliance on the filing extension provided by the SEC’s Order under Section 36 of the Securities Exchange Act of 1934, as amended, dated March 4, 2020 (Release No. 34-88318), as modified on March 25, 2020 (Release No. 34-88465) (the “Order”). On April 23, 2020, the Company filed a Current Report on Form 8-K (the “Form 8-K”) to indicate its intention to rely on the Order and delay the filing of its Quarterly Report for the first quarter ended May 2, 2020, which was originally due to be filed with the SEC on or before June 16, 2020. Consistent with the Company’s statements in the Form 8-K, the Company was unable to file the Quarterly Report until July 16, 2020 due to circumstances related to the coronavirus (“COVID-19”) pandemic. In particular, the Company required additional time due to its previously announced reduction in staff, suspension of in-person operations at its corporate headquarters, and temporary closure of its stores for an unknown period of time, as well as other financial and operational concerns associated with or caused by the COVID-19 pandemic. These conditions caused significant disruptions to the Company’s operations requiring key personnel to devote considerable time and resources to respond to the emerging impacts to its business, which limited their availability to complete the Quarterly Report and to thoroughly evaluate the impact of the COVID-19 pandemic. |
Going Concern | Going Concern During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of COVID-19. The pandemic has significantly impacted the economic conditions in the U.S., accelerating during the first half of March, as federal, state and local governments reacted to the public health crisis, creating significant uncertainties in the U.S. economy. In March 2020, we announced the temporary closure of all stores for an unknown period of time and significant actions taken to mitigate the ongoing impact of the COVID-19 pandemic on our cash flows to protect our business and associates for the long term in response to the crisis. Such actions include targeted reductions in discretionary operating expenses such as advertising and payroll expenses, including furloughing a significant number of our employees and temporarily reducing the payroll of remaining employees, reducing capital expenditures, reducing merchandise receipts, and utilizing funds available under our Revolving Credit Facility and Promissory Note. Further, we have sought and are seeking extended payment terms with all vendors, including merchandise, expense and rent vendors. We started reopening stores on April 23, 2020 as government jurisdictions have allowed, and as of June 15, 2020, we have reopened all of our stores with limited operating hours. We are unable to predict if additional periods of store closures will be needed or mandated. Continued impacts of the pandemic have had a material adverse impact on our revenues, earnings, liquidity and cash flows, and may require significant additional actions in response, including, but not limited to, further employee furloughs, reduced store hours, store closings, expense reductions or discounting of pricing of our products, all in an effort to mitigate such impacts. The extent of the impact of the pandemic on our business and financial results will depend largely on future developments, including the duration of the spread of the outbreak within the U.S., the impact on capital and financial markets and the related impact on consumer confidence and spending, all of which are highly uncertain and cannot be predicted. This situation is rapidly changing and additional impacts to the business may arise that we are not aware of currently. While the disruption is currently expected to be temporary, there is uncertainty around the duration. The ultimate impact of the pandemic on the Company’s results of operations, financial position, liquidity or capital resources cannot be reasonably estimated at this time. The significant risks and uncertainties related to the Company's liquidity described above raise substantial doubt about the Company's ability to continue as a going concern over the next twelve months. The Consolidated Financial Statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities and other commitments in the normal course of business. The accompanying Consolidated Financial Statements do not include any adjustments to reflect the possible future effects of this uncertainty on the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40). This update provides additional guidance to ASU No. 2015-5, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40), which was issued in April 2015. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). This ASU is effective for annual reporting periods beginning on or after December 15, 2019, and interim periods within those annual periods with early adoption permitted in any interim period for which financial statements have not yet been issued. We adopted this ASU as of February 2, 2020. The adoption of this ASU did not have a material effect on our financial condition, results of operations or cash flows. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
May 02, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue by Type of Contract | The following table sets forth our revenue by type of contract (in thousands): 13 Weeks Ended 13 Weeks Ended Store sales (1) $ 122,849 $ 293,289 Ecommerce sales (2) 8,871 13,744 Licensee commissions (3) 2,553 7,124 Net sales 134,273 314,157 Credit card revenue (4) 817 2,564 Breakage revenue (5) 3,010 2,538 Other 82 123 Other revenue 3,909 5,225 Total revenue $ 138,182 $ 319,382 _______________ (1) Store sales are net of any returns, discounts and percentage-off coupons. Store sales include $11.4 million and $3.9 million sales generated online and either shipped from store or picked up in store by our customers for the 13 weeks ended May 2, 2020 and May 4, 2019, respectively. (2) Ecommerce sales are net of any returns, discounts and percentage-off coupons. Ecommerce sales are online orders fulfilled from our warehouse or shipped directly from our vendors. (3) Licensed department commissions are net of any returns. (4) Credit card revenue earned from Synchrony programs, partially offset by rewards program costs. (5) Breakage revenue earned on unused gift and merchandise return cards and unused certificates and loyalty reward points. |
Summary of Gross Up of Sales Return Reserve | The following table sets forth the gross-up of the sales return reserve (in thousands): May 2, 2020 February 1, 2020 May 4, 2019 Reserve for sales returns $ (3,652) $ (3,763) $ (6,286) Cost of inventory returns 2,576 2,160 3,372 |
Summary of Contract Liabilities and Their Relationship to Revenue | The following table sets forth the contract liabilities and their relationship to revenue (in thousands): May 2, 2020 February 1, 2020 May 4, 2019 Deferred revenue contracts $ (9,032) $ (9,424) $ (10,617) Gift card liability (10,154) (11,488) (9,631) Credit card reward liability (5,743) (7,261) (5,510) Liability for deferred revenue $ (24,929) $ (28,173) $ (25,758) |
Summary of Amounts Included in Contract Liabilities | The following table sets forth a rollforward of the amounts included in contract liabilities for the periods presented (in thousands): 13 Weeks Ended 13 Weeks Ended Beginning balance $ 28,173 $ 28,846 Current period gift cards sold and loyalty reward points earned 4,261 7,501 Net sales from redemptions (1) (4,103) (7,651) Breakage and amortization (2) (3,402) (2,938) Ending balance $ 24,929 $ 25,758 _______________ (1) $2.8 million and $4.4 million in net sales from redemptions were included in the beginning balance of contract liabilities for the 13 weeks ended May 2, 2020 and May 4, 2019, respectively. (2) $3.2 million and $2.8 million in breakage and amortization were included in the beginning balance of contract liabilities for the 13 weeks ended May 2, 2020 and May 4, 2019, respectively. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
May 02, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | The following table sets forth property and equipment, net (in thousands): May 2, 2020 February 1, 2020 May 4, 2019 Fixtures, equipment and software $ 243,867 $ 245,034 $ 239,522 Leasehold improvements 129,562 132,772 130,575 Total 373,429 377,806 370,097 Accumulated depreciation and amortization (282,414) (275,913) (255,845) Property and equipment, net $ 91,015 $ 101,893 $ 114,252 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
May 02, 2020 | |
Payables and Accruals [Abstract] | |
Major Components of Accrued Expenses and Other Current Liabilities | The following table sets forth the major components of accrued expenses and other current liabilities (in thousands): May 2, 2020 February 1, 2020 May 4, 2019 Property taxes $ 20,479 $ 20,532 $ 18,557 Unredeemed gift and merchandise return cards 10,154 11,488 9,631 Compensation and employee benefits 6,046 7,448 6,691 Accrued vacation 2,546 3,909 4,316 Other 27,203 36,854 44,923 Accrued expenses and other current liabilities $ 66,428 $ 80,231 $ 84,118 |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 3 Months Ended |
May 02, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table sets forth a reconciliation of basic weighted-average number of common shares to diluted weighted-average number of common shares (in thousands): 13 Weeks Ended 13 Weeks Ended Basic weighted-average shares outstanding 47,456 47,111 Incremental shares from share-based compensation plans — 445 Diluted weighted-average shares outstanding 47,456 47,556 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
May 02, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Debt | The following table sets forth our debt (in thousands): May 2, 2020 February 1, 2020 May 4, 2019 Revolving credit facility $ 152,000 $ 107,100 $ 118,800 Term loan 35,000 35,000 35,000 Promissory notes 10,844 — — Total debt 197,844 142,100 153,800 Current portion (1) (197,228) — — Debt issuance costs (616) (662) (801) Long-term debt $ — $ 141,438 $ 152,999 _______________ (1) Due to the uncertainties concerning the Company's future liquidity and on-going covenant compliance as a result of the impact of the COVID-19 pandemic on the Company's business as discussed in more detail in Note 1. "Basis of Presentation", the amount outstanding under our Revolving Credit Facility and Term Loan are classified as a current liability in the consolidated balance sheet as of May 2, 2020. The Promissory Notes are also considered current liabilities. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
May 02, 2020 | |
Leases [Abstract] | |
Lease, Cost | The following table summarizes our classification of lease cost (in thousands): Statement of Operations Location 13 Weeks Ended Operating lease cost (1) Selling, general and administrative expenses $ 24,266 Finance lease cost: Amortization of finance lease assets Selling, general and administrative expenses 359 Interest on lease liabilities Interest expense, net 62 Variable lease cost Selling, general and administrative expenses 9,692 Net lease cost $ 34,379 _______________ (1) Includes lease costs for short-term leases, which are immaterial. |
Lessee, Lease, Liability, Maturity | As of May 2, 2020, the following table summarizes the maturity of our lease liabilities (in thousands): Operating Finance Total Remainder of 2020 $ 99,333 $ 1,451 $ 100,784 2021 94,171 1,525 95,696 2022 80,653 1,259 81,912 2023 65,954 489 66,443 2024 52,127 1 52,128 Thereafter 77,062 — 77,062 Total lease payments 469,300 4,725 474,025 Less: Interest (76,100) (433) (76,533) Present value of lease liabilities $ 393,200 $ 4,292 $ 397,492 |
Disclosure of Lease Term and Weighted Average Discount Rate | The following table summarizes our lease term and discount rate: May 2, 2020 Weighted-average remaining lease term (years): Operating leases 5 years Finance leases 3 years Weighted-average discount rate: Operating leases 5.1 % Finance leases 7.2 % |
Disclosure of Cash Flows Relating to Leases | The following table summarizes the other information related to our lease liabilities (in thousands): 13 Weeks Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 19,302 Operating cash flows from finance leases 62 Financing cash flows from finance leases 459 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) | 3 Months Ended | ||||
May 02, 2020USD ($) | May 04, 2019USD ($) | Jun. 10, 2020USD ($)points | Jun. 09, 2020USD ($)points | Feb. 20, 2020USD ($)points | |
Disaggregation of Revenue [Line Items] | |||||
Breakage unused gift and merchandise revenue recognized | $ 400,000 | $ 600,000 | |||
Breakage revenue on unused credit card reward certificates | $ 2,600,000 | $ 1,900,000 | |||
Non credit card reward certificates, increment value | $ 5 | ||||
Non credit card reward certificates, points | points | 500 | ||||
Subsequent Event | |||||
Disaggregation of Revenue [Line Items] | |||||
Credit card reward certificates, increment value | $ 5 | $ 10 | |||
Credit card reward certificate, points | points | 500 | 1,000 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Revenue by Type of Contract (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 134,273 | $ 314,157 |
Other revenue | 3,909 | 5,225 |
Total revenue | 138,182 | 319,382 |
Store sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 122,849 | 293,289 |
Ecommerce sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 8,871 | 13,744 |
Licensee commissions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,553 | 7,124 |
Credit card revenue | ||
Disaggregation of Revenue [Line Items] | ||
Other revenue | 817 | 2,564 |
Breakage revenue | ||
Disaggregation of Revenue [Line Items] | ||
Other revenue | 3,010 | 2,538 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Other revenue | 82 | 123 |
Store sales generated online | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 11,400 | $ 3,900 |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Gross Up of Sales Return Reserve (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
May 02, 2020 | May 04, 2019 | Feb. 01, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Reserve for sales returns | $ (3,652) | $ (6,286) | $ (3,763) |
Cost of inventory returns | $ 2,576 | $ 3,372 | $ 2,160 |
Revenue Recognition - Summary_3
Revenue Recognition - Summary of Contract Liabilities and Their Relationship to Revenue (Detail) - USD ($) $ in Thousands | May 02, 2020 | Feb. 01, 2020 | May 04, 2019 | Feb. 02, 2019 |
Disaggregation of Revenue [Line Items] | ||||
Liability for deferred revenue | $ (24,929) | $ (28,173) | $ (25,758) | $ (28,846) |
Deferred revenue contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Liability for deferred revenue | (9,032) | (9,424) | (10,617) | |
Gift card liability | ||||
Disaggregation of Revenue [Line Items] | ||||
Liability for deferred revenue | (10,154) | (11,488) | (9,631) | |
Credit card reward liability | ||||
Disaggregation of Revenue [Line Items] | ||||
Liability for deferred revenue | $ (5,743) | $ (7,261) | $ (5,510) |
Revenue Recognition - Summary_4
Revenue Recognition - Summary of Amounts Included in Contract Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Contract with Customer, Liability [Roll Forward] | ||
Beginning balance | $ 28,173 | $ 28,846 |
Current period gift cards sold and loyalty reward points earned | 4,261 | 7,501 |
Net sales from redemptions | (4,103) | (7,651) |
Breakage and amortization | (3,402) | (2,938) |
Ending balance | 24,929 | 25,758 |
Revenue recognition | ||
Contract with Customer, Liability [Roll Forward] | ||
Ending balance | 2,800 | 4,400 |
Breakage and amortization | ||
Contract with Customer, Liability [Roll Forward] | ||
Ending balance | $ 3,200 | $ 2,800 |
Property and Equipment, Net - P
Property and Equipment, Net - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | May 02, 2020 | Feb. 01, 2020 | May 04, 2019 |
Property, Plant and Equipment [Line Items] | |||
Total | $ 373,429 | $ 377,806 | $ 370,097 |
Accumulated depreciation and amortization | (282,414) | (275,913) | (255,845) |
Property and equipment, net | 91,015 | 101,893 | 114,252 |
Fixtures, equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Total | 243,867 | 245,034 | 239,522 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 129,562 | $ 132,772 | $ 130,575 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) $ in Millions | 3 Months Ended |
May 02, 2020USD ($) | |
SG&A Expenses | |
Property, Plant and Equipment [Line Items] | |
Property and equipment impairment charges | $ 5.2 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Major Components of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | May 02, 2020 | Feb. 01, 2020 | May 04, 2019 |
Payables and Accruals [Abstract] | |||
Property taxes | $ 20,479 | $ 20,532 | $ 18,557 |
Unredeemed gift and merchandise return cards | 10,154 | 11,488 | 9,631 |
Compensation and employee benefits | 6,046 | 7,448 | 6,691 |
Accrued vacation | 2,546 | 3,909 | 4,316 |
Other | 27,203 | 36,854 | 44,923 |
Accrued expenses and other current liabilities | $ 66,428 | $ 80,231 | $ 84,118 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Schedule of Shareholders' Equity [Line Items] | ||
Dividends declared and cash paid per share (in dollars per share) | $ 0 | $ 0 |
Repurchase of shares (in shares) | 137,270 | 102,543 |
Repurchase shares value | $ 0.1 | $ 0.1 |
Board of Directors | ||
Schedule of Shareholders' Equity [Line Items] | ||
Repurchase of shares, remaining (in shares) | 366,889 |
Earnings (Loss) per Share - Sch
Earnings (Loss) per Share - Schedule of Weighted Average Number of Shares (Details) - shares shares in Thousands | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Earnings Per Share [Abstract] | ||
Basic weighted-average shares outstanding (in shares) | 47,456 | 47,111 |
Incremental shares from share-based compensation plans (in shares) | 0 | 445 |
Diluted weighted-average shares outstanding (in shares) | 47,456 | 47,556 |
Earnings (Loss) per Share - Add
Earnings (Loss) per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded (in shares) | 0.3 | |
Dilutive securities excluded (in shares) | 1.9 | 2.9 |
Debt - Summary of Debt (Detail)
Debt - Summary of Debt (Detail) - USD ($) $ in Thousands | May 02, 2020 | Feb. 01, 2020 | May 04, 2019 |
Debt Instrument [Line Items] | |||
Total debt | $ 197,844 | $ 142,100 | $ 153,800 |
Current portion | (197,228) | 0 | 0 |
Debt issuance costs | (616) | (662) | (801) |
Long-term debt | 0 | 141,438 | 152,999 |
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Total debt | 152,000 | 107,100 | 118,800 |
Term loan | |||
Debt Instrument [Line Items] | |||
Total debt | 35,000 | 35,000 | 35,000 |
Promissory notes | |||
Debt Instrument [Line Items] | |||
Total debt | $ 10,844 | $ 0 | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Detail) | Jun. 11, 2020USD ($) | Sep. 18, 2018USD ($)BusinessDay | Mar. 14, 2018USD ($) | May 02, 2020USD ($)BusinessDay | Oct. 03, 2020USD ($) | Oct. 03, 2020USD ($) | Sep. 30, 2023USD ($) | Oct. 04, 2020 | Jul. 09, 2020USD ($) | Jun. 23, 2020USD ($) | Apr. 06, 2020USD ($) | Mar. 23, 2020USD ($) | Feb. 01, 2020USD ($) | May 04, 2019USD ($) | Feb. 02, 2019USD ($) | Jan. 30, 2016USD ($) | Feb. 03, 2015USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||
Debt issuance costs | $ 616,000 | $ 662,000 | $ 801,000 | ||||||||||||||
Borrowing capacity covenant, percentage of credit card receivables and net recovery of inventories | 100.00% | ||||||||||||||||
Letters of credit, outstanding | $ 7,900,000 | ||||||||||||||||
Remaining borrowing capacity under line of credit facility | 22,400,000 | ||||||||||||||||
Borrowings | $ 197,844,000 | $ 142,100,000 | $ 153,800,000 | ||||||||||||||
Promissory notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maximum percent of cash surrender value of life insurance available for borrowing | 90.00% | ||||||||||||||||
Current borrowing capacity under line of credit facility | $ 11,100,000 | ||||||||||||||||
Borrowings | $ 9,900,000 | ||||||||||||||||
Fixed interest rate | 3.56% | ||||||||||||||||
Revolving credit facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt issuance costs | $ 400,000 | ||||||||||||||||
Fixed charges coverage ratio | 1 | ||||||||||||||||
Weighted average interest rate on debt amounts outstanding | 2.41% | ||||||||||||||||
Fifth Credit Agreement Amendment | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Minimum excess availability, period past due | 60 days | ||||||||||||||||
Minimum liquidity, less than four weeks | $ 12,500,000 | ||||||||||||||||
Minimum liquidity | $ 7,500,000 | ||||||||||||||||
Fifth Credit Agreement Amendment | Forecast | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Percentage of combined loan cap | 5.00% | 5.00% | 10.00% | ||||||||||||||
Minimum excess availability | $ 10,000,000 | $ 20,000,000 | |||||||||||||||
Fifth Credit Agreement Amendment | London Interbank Offered Rate (LIBOR) | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument interest rate | 1.00% | ||||||||||||||||
Fifth Credit Agreement Amendment | London Interbank Offered Rate (LIBOR) | Forecast | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument interest rate | 2.25% | 1.00% | |||||||||||||||
Fifth Credit Agreement Amendment | Fed Funds Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument interest rate | 0.50% | ||||||||||||||||
Fifth Credit Agreement Amendment | Fed Funds Rate | Forecast | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument interest rate | 0.50% | ||||||||||||||||
Fifth Credit Agreement Amendment | Base Rate | Forecast | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument interest rate | 1.25% | ||||||||||||||||
Fifth Credit Agreement Amendment | Minimum | London Interbank Offered Rate (LIBOR) | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument interest rate | 1.75% | ||||||||||||||||
Fifth Credit Agreement Amendment | Minimum | London Interbank Offered Rate (LIBOR) | Forecast | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument interest rate | 1.25% | ||||||||||||||||
Fifth Credit Agreement Amendment | Minimum | Prime Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument interest rate | 0.75% | ||||||||||||||||
Fifth Credit Agreement Amendment | Minimum | Prime Rate | Forecast | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument interest rate | 0.25% | ||||||||||||||||
Fifth Credit Agreement Amendment | Maximum | London Interbank Offered Rate (LIBOR) | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument interest rate | 2.25% | ||||||||||||||||
Fifth Credit Agreement Amendment | Maximum | London Interbank Offered Rate (LIBOR) | Forecast | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument interest rate | 1.75% | ||||||||||||||||
Fifth Credit Agreement Amendment | Maximum | Prime Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument interest rate | 1.25% | ||||||||||||||||
Fifth Credit Agreement Amendment | Maximum | Prime Rate | Forecast | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument interest rate | 0.75% | ||||||||||||||||
Term loan | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of consecutive business days | BusinessDay | 4 | ||||||||||||||||
Percentage of combined loan cap | 10.00% | ||||||||||||||||
Minimum excess availability | $ 20,000,000 | ||||||||||||||||
Fixed charges coverage ratio | 1 | ||||||||||||||||
Weighted average interest rate on debt amounts outstanding | 9.83% | ||||||||||||||||
Increase in excess availability under the Credit Agreement | $ 25,000,000 | ||||||||||||||||
Term loan | Minimum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Value of leasehold interests in real property | $ 10,000,000 | ||||||||||||||||
Term loan | Maximum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Remaining borrowing capacity under line of credit facility | 20,000,000 | ||||||||||||||||
Tranche A-1 Revolving Loan Commitment | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Revolving loan commitment | 25,000,000 | ||||||||||||||||
Fourth Term Loan Amendment | Subsequent Event | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Minimum excess availability, period past due | 60 days | ||||||||||||||||
Percentage of combined loan cap | 5.00% | ||||||||||||||||
Minimum liquidity, less than four weeks | $ 12,500,000 | ||||||||||||||||
Minimum liquidity | $ 7,500,000 | ||||||||||||||||
Fourth Term Loan Amendment | Subsequent Event | Forecast | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Percentage of combined loan cap | 10.00% | ||||||||||||||||
Minimum excess availability | $ 10,000,000 | $ 20,000,000 | |||||||||||||||
Wells Fargo Bank | Revolving credit facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Credit facility maximum borrowing capacity | $ 240,000,000 | $ 250,000,000 | |||||||||||||||
Wells Fargo Bank | Tranche A-1 Revolving Loans | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Credit facility maximum borrowing capacity | 25,000,000 | ||||||||||||||||
Wells Fargo Bank | Tranche A Revolving Loan | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Credit facility maximum borrowing capacity | $ 240,000,000 | 225,000,000 | |||||||||||||||
Debt issuance costs | $ 100,000 | ||||||||||||||||
Loan cap percentage | 10.00% | ||||||||||||||||
Loan cap percentage, three consecutive business days | 12.50% | ||||||||||||||||
Number of consecutive business days | BusinessDay | 3 | ||||||||||||||||
Gordon Brothers Finance Company, LLC | Term loan | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Credit facility maximum borrowing capacity | $ 35,000,000 | 50,000,000 | |||||||||||||||
Debt issuance costs | 900,000 | $ 300,000 | |||||||||||||||
Loan cap percentage, three consecutive business days | 12.50% | ||||||||||||||||
Proceeds from term loan | $ 49,100,000 | ||||||||||||||||
Gordon Brothers Finance Company, LLC | Term loan | London Interbank Offered Rate (LIBOR) | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument interest rate | 8.25% | ||||||||||||||||
Floor rate | 1.50% | ||||||||||||||||
Gordon Brothers Finance Company, LLC | Term loan | Maximum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Loan cap percentage | 10.00% | ||||||||||||||||
Bank Direct Capital Finance | Promissory notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Borrowings | $ 1,000,000 | ||||||||||||||||
Fixed interest rate | 4.25% | ||||||||||||||||
Bank Direct Capital Finance | Promissory notes | Subsequent Event | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Borrowings | $ 1,900,000 | ||||||||||||||||
Fixed interest rate | 4.25% | ||||||||||||||||
Harvest Small Business Finance | Subsequent Event | Coronavirus Aid, Relief and Economic Security Act | U.S. Small Business Administration Loan | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Fixed interest rate | 1.00% | ||||||||||||||||
Debt instrument, face amount | $ 10,000,000 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 3 Months Ended |
May 02, 2020USD ($)extension | |
Operating Leased Assets [Line Items] | |
Lease term | 10 years |
Number of lease extensions | extension | 2 |
Length of lease extension | 5 years |
Finance lease, right-of use asset | $ 6.9 |
Deferred rent | 4.2 |
Selling, General and Administrative Expenses | |
Operating Leased Assets [Line Items] | |
Operating lease asset, impairment charges | $ 5.1 |
Leases - Lease Cost (Detail)
Leases - Lease Cost (Detail) $ in Thousands | 3 Months Ended |
May 02, 2020USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 24,266 |
Amortization of finance lease assets | 359 |
Interest on lease liabilities | 62 |
Variable lease cost | 9,692 |
Net lease cost | $ 34,379 |
Leases - Lessee, Lease, Liabili
Leases - Lessee, Lease, Liability, Maturity (Detail) $ in Thousands | May 02, 2020USD ($) |
Operating Leases [Abstract] | |
Remainder of 2020 | $ 99,333 |
2021 | 94,171 |
2022 | 80,653 |
2023 | 65,954 |
2024 | 52,127 |
Thereafter | 77,062 |
Total lease payments | 469,300 |
Less: Interest | (76,100) |
Present value of lease liabilities | 393,200 |
Finance Leases [Abstract] | |
Remainder of 2020 | 1,451 |
2021 | 1,525 |
2022 | 1,259 |
2023 | 489 |
2024 | 1 |
Thereafter | 0 |
Total lease payments | 4,725 |
Less: Interest | (433) |
Present value of lease liabilities | 4,292 |
Remainder of 2020 | 100,784 |
2021 | 95,696 |
2022 | 81,912 |
2023 | 66,443 |
2024 | 52,128 |
Thereafter | 77,062 |
Total lease payments | 474,025 |
Less: Interest | (76,533) |
Present value of lease liabilities | $ 397,492 |
Leases - Disclosure of Lease Te
Leases - Disclosure of Lease Term and Weighted Average Discount Rate (Detail) | May 02, 2020 |
Weighted-average remaining lease term (years): | |
Operating leases | 5 years |
Finance leases | 3 years |
Weighted-average discount rate: | |
Operating leases | 5.10% |
Finance leases | 7.20% |
Leases - Disclosure of cash flo
Leases - Disclosure of cash flows relating to leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 19,302 | |
Operating cash flows from finance leases | 62 | |
Financing cash flows from finance leases | $ 459 | $ 168 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 3 Months Ended |
May 02, 2020USD ($) | |
Income Tax Disclosure [Abstract] | |
Effective tax rate | 14.10% |
Income taxes receivable | $ 8 |
Net federal income tax refund, CARES Act | $ 2.9 |