Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Aug. 04, 2018 | Aug. 13, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | CHICOS FAS INC | |
Entity Central Index Key | 897,429 | |
Current Fiscal Year End Date | --02-02 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Aug. 4, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 125,697,740 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Income Statement [Abstract] | ||||
Net Sales | $ 544,720 | $ 578,581 | $ 1,106,535 | $ 1,162,309 |
Net Sales, as a Percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Cost of goods sold | $ 347,853 | $ 369,480 | $ 682,800 | $ 715,795 |
Cost of goods sold, as a Percentage of Sales | 63.90% | 63.90% | 61.70% | 61.60% |
Gross Margin | $ 196,867 | $ 209,101 | $ 423,735 | $ 446,514 |
Gross Margin, as a Percentage of Sales | 36.10% | 36.10% | 38.30% | 38.40% |
Selling, general and administrative expenses | $ 174,089 | $ 173,642 | $ 360,508 | $ 356,181 |
Selling, general and administrative expenses, as a Percentage of Sales | 31.90% | 30.00% | 32.60% | 30.60% |
Income from Operations | $ 22,778 | $ 35,459 | $ 63,227 | $ 90,333 |
Income from Operations, as a Percentage of Sales | 4.20% | 6.10% | 5.70% | 7.80% |
Interest expense, net | $ (310) | $ (443) | $ (555) | $ (898) |
Interest expense, net, as a Percentage of Sales | (0.10%) | 0.00% | 0.00% | (0.10%) |
Income before Income Taxes | $ 22,468 | $ 35,016 | $ 62,672 | $ 89,435 |
Income before Income Taxes, as a Percentage of Sales | 4.10% | 6.10% | 5.70% | 7.70% |
Income tax provision | $ 5,700 | $ 12,300 | $ 16,900 | $ 33,100 |
Income tax provision, as a Percentage of Sales | 1.00% | 2.20% | 1.60% | 2.90% |
Net Income | $ 16,768 | $ 22,716 | $ 45,772 | $ 56,335 |
Net Income, as a Percentage of Sales | 3.10% | 3.90% | 4.10% | 4.80% |
Per Share Data: | ||||
Net income per common share-basic (in dollars per share) | $ 0.13 | $ 0.18 | $ 0.36 | $ 0.44 |
Net income per common and common equivalent share–diluted (in dollars per share) | $ 0.13 | $ 0.18 | $ 0.36 | $ 0.44 |
Weighted average common shares outstanding–basic (in shares) | 124,730 | 125,643 | 125,003 | 125,847 |
Weighted average common and common equivalent shares outstanding–diluted (in shares) | 124,774 | 125,677 | 125,054 | 125,890 |
Dividends declared per share (in dollars per share) | $ 0.0850 | $ 0.0825 | $ 0.2550 | $ 0.2475 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 16,768 | $ 22,716 | $ 45,772 | $ 56,335 |
Other comprehensive income: | ||||
Unrealized gains on marketable securities, net of taxes | 87 | 10 | 56 | 32 |
Foreign currency translation (losses) gains | (20) | 133 | (88) | 109 |
Comprehensive Income | $ 16,835 | $ 22,859 | $ 45,740 | $ 56,476 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Aug. 04, 2018 | Feb. 03, 2018 | Jul. 29, 2017 |
Current Assets: | |||
Cash and cash equivalents | $ 177,641 | $ 160,071 | $ 135,324 |
Marketable securities, at fair value | 61,727 | 60,060 | 50,878 |
Inventories | 224,233 | 233,726 | 235,167 |
Prepaid expenses and other current assets | 57,301 | 60,668 | 49,381 |
Total Current Assets | 520,902 | 514,525 | 470,750 |
Property and Equipment, net | 393,525 | 421,038 | 443,833 |
Other Assets: | |||
Goodwill | 96,774 | 96,774 | 96,774 |
Other intangible assets, net | 38,930 | 38,930 | 38,930 |
Other assets, net | 13,327 | 16,338 | 16,745 |
Total Other Assets | 149,031 | 152,042 | 152,449 |
Total Assets | 1,063,458 | 1,087,605 | 1,067,032 |
Current Liabilities: | |||
Accounts payable | 139,604 | 118,253 | 125,945 |
Current debt | 0 | 15,000 | 15,000 |
Other current and deferred liabilities | 119,497 | 133,715 | 123,137 |
Total Current Liabilities | 259,101 | 266,968 | 264,082 |
Noncurrent Liabilities: | |||
Long-term debt | 61,250 | 53,601 | 61,068 |
Other noncurrent and deferred liabilities | 97,454 | 103,282 | 112,218 |
Deferred taxes | 4,640 | 7,372 | 11,222 |
Total Noncurrent Liabilities | 163,344 | 164,255 | 184,508 |
Commitments and Contingencies | |||
Shareholders’ Equity: | |||
Preferred stock, $0.01 par value; 2,500 shares authorized; no shares issued and outstanding | 0 | 0 | 0 |
Common stock, $0.01 par value; 400,000 shares authorized; 158,368 and 156,585 and 156,635 shares issued respectively; and 125,710 and 127,471 and 128,329 shares outstanding, respectively | 1,257 | 1,275 | 1,283 |
Additional paid-in capital | 476,480 | 468,806 | 458,172 |
Treasury stock, at cost, 32,658 and 29,114 and 28,306 shares, respectively | (444,252) | (413,465) | (406,776) |
Retained earnings | 607,643 | 599,810 | 565,650 |
Accumulated other comprehensive (loss) income | (115) | (44) | 113 |
Total Shareholders’ Equity | 641,013 | 656,382 | 618,442 |
Total Liabilities and Shareholders' Equity | $ 1,063,458 | $ 1,087,605 | $ 1,067,032 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets - Parenthetical (Unaudited) - $ / shares | Aug. 04, 2018 | Feb. 03, 2018 | Jul. 29, 2017 |
Statement of Financial Position [Abstract] | |||
Preferred share par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred shares authorized (in shares) | 2,500,000 | 2,500,000 | 2,500,000 |
Preferred shares issued (in shares) | 0 | 0 | 0 |
Preferred shares outstanding (in shares) | 0 | 0 | 0 |
Common share par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common shares authorized (in shares) | 400,000,000 | 400,000,000 | 400,000,000 |
Common shares issued (in shares) | 158,368,000 | 156,585,000 | 156,635,000 |
Common shares outstanding (in shares) | 125,710,000 | 127,471,000 | 128,329,000 |
Treasury shares at cost (in shares) | 32,658,000 | 29,114,000 | 28,306,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 04, 2018 | Jul. 29, 2017 | |
Cash Flows from Operating Activities: | ||
Net income | $ 45,772 | $ 56,335 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 45,870 | 50,012 |
Loss on disposal and impairment of property and equipment | 1,778 | 1,183 |
Deferred income taxes | (2,600) | 1,653 |
Share-based compensation expense | 10,238 | 10,232 |
Deferred rent and lease credits | (10,101) | (9,345) |
Changes in assets and liabilities: | ||
Inventories | 8,669 | (2,804) |
Prepaid expenses and other current assets | 5,864 | 5,022 |
Accounts payable | 10,440 | (903) |
Accrued and other liabilities | (16,329) | (44,076) |
Net cash provided by operating activities | 99,601 | 67,309 |
Cash Flows from Investing Activities: | ||
Purchases of marketable securities | (17,315) | (14,264) |
Proceeds from sale of marketable securities | 15,718 | 13,794 |
Purchases of property and equipment | (19,844) | (18,040) |
Net cash used in investing activities | (21,441) | (18,510) |
Cash Flows from Financing Activities: | ||
Proceeds from borrowings | 61,250 | 0 |
Payments on borrowings | (68,750) | (8,750) |
Proceeds from issuance of common stock | 679 | 1,095 |
Dividends paid | (22,012) | (21,467) |
Repurchase of common stock | (28,443) | (20,700) |
Payments of tax withholdings related to share-based awards | (3,226) | (5,897) |
Net cash used in financing activities | (60,502) | (55,719) |
Effects of exchange rate changes on cash and cash equivalents | (88) | 109 |
Net increase (decrease) in cash and cash equivalents | 17,570 | (6,811) |
Cash and Cash Equivalents, Beginning of period | 160,071 | 142,135 |
Cash and Cash Equivalents, End of period | 177,641 | 135,324 |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid for interest | 2,063 | 1,203 |
Cash paid for income taxes, net | $ 22,327 | $ 39,553 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Aug. 04, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements of Chico’s FAS, Inc. and its wholly-owned subsidiaries (collectively, the “Company”) have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by accounting principles generally accepted in the U.S. (“U.S. GAAP”) for complete financial statements. In the opinion of management, such interim financial statements reflect all normal, recurring adjustments considered necessary to present fairly the condensed consolidated financial position, the results of operations and cash flows for the interim periods presented. All significant intercompany balances and transactions have been eliminated in consolidation. For further information, refer to the consolidated financial statements and notes thereto for the fiscal year ended February 3, 2018 , included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 13, 2018 . As used in this report, all references to “we,” “us,” “our” and “the Company,” refer to Chico’s FAS, Inc. and all of its wholly-owned subsidiaries. Our fiscal years end on the Saturday closest to January 31 and are designated by the calendar year in which the fiscal year commences. Operating results for the thirteen and twenty-six weeks ended August 4, 2018 are not necessarily indicative of the results that may be expected for the entire year. Adoption of New Accounting Pronouncements In the first quarter of fiscal 2018, we early adopted the guidance of Accounting Standards Update (“ASU”) 2018-02, Income Statement - Reporting Comprehensive Income , which provides entities the option to reclassify to retained earnings tax effects related to items in accumulated other comprehensive income (“OCI”) that have been stranded in accumulated OCI as a result of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The provisions of ASU 2018-02 were adopted on a prospective basis with a cumulative adjustment to opening retained earnings, and prior period amounts have not been adjusted and continue to be reported in accordance with the previous guidance. In the first quarter of fiscal 2018, the Company recorded an immaterial cumulative effect adjustment as an increase to opening retained earnings upon adoption of ASU 2018-02 as detailed in the table below. In the second quarter of fiscal 2018, we adopted the guidance of ASU 2017-04, Intangibles - Goodwill and Other: S implifying the Test for Goodwill Impairment , which simplifies the subsequent measurement of goodwill by eliminating the second step from the quantitative goodwill impairment test. Under this guidance, annual or interim goodwill impairment testing will be performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge will then be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the carrying value of goodwill. The provisions of ASU 2017-04 were adopted on a prospective basis and did not have an impact on the Company’s unaudited consolidated financial statements. In the first quarter of fiscal 2018, we adopted the guidance of ASU 2016-16, Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory , which requires companies to recognize the income tax effects of intercompany sales or transfers of other assets in the income statement as income tax expense (benefit) in the period the sale or transfer occurs. Additionally, companies are required to evaluate whether the tax effects of the intercompany sales or transfers of non-inventory assets should be included in their estimates of annual effective tax rates by using today's interim guidance on income tax accounting. The provisions of ASU 2016-16 were adopted on a modified retrospective basis with a cumulative adjustment to opening retained earnings, and prior period amounts have not been adjusted and continue to be reported in accordance with the previous guidance. In the first quarter of fiscal 2018, the Company recorded a cumulative effect adjustment of $5.7 million as a decrease to opening retained earnings upon adoption of ASU 2016-16. Any further tax impacts on sales or transfers of intercompany assets other than inventory will be recognized as incurred. In the first quarter of fiscal 2018, we adopted the guidance of ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , under which entities are no longer able to recognize unrealized holding gains and losses on equity securities they classify as available-for-sale in other comprehensive income but instead must recognize the change in fair value in net income. The updated guidance further eliminated equity security classification categories (i.e., trading and available-for-sale). The new standard does not change the guidance for classifying and measuring investments in debt securities. The provisions of ASU 2016-01 were adopted on a prospective basis and did not have an impact on the Company’s unaudited consolidated financial statements. In the first quarter of fiscal 2018, we adopted the guidance of ASU 2014-09, Revenue from Contracts with Customers. The updated guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. Through our evaluation of the impact of this ASU 2014-09, we identified certain changes that were made to our accounting policies, practices, systems and controls which include: 1) revenue related to our online sales will be recognized at the shipping point rather than upon delivery to customer; 2) timing of our recognition of advertising expenses, whereby certain expenses that previously were amortized over their expected period of future benefit will be expensed the first time the advertisement appears; 3) presentation of estimated merchandise returns as both an asset, equal to the inventory value net of processing costs, and a corresponding return liability, compared to the previous practice of recording an estimated net return liability; and 4) the recognition of any future franchise development fees will be recognized over the license period. Upon adoption, the Company's accounting policies and treatment over revenue recognition are consistent with the provisions of ASU 2014-09 and represent a faithful depiction of the transfer of promised goods or services to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The provisions of ASU 2014-09 were adopted on a modified retrospective basis with a cumulative adjustment to opening retained earnings, and prior period amounts have not been adjusted and continue to be reported in accordance with the previous guidance. In the first quarter of fiscal 2018, the Company recorded a cumulative effect adjustment of $0.7 million as an increase to opening retained earnings upon adoption of ASU 2014-09. Adjustments to Presentation Upon Adoption of New Accounting Pronouncements The following table presents the effects that the aforementioned adopted accounting standards had on our February 3, 2018 condensed consolidated balance sheet: February 3, 2018 (As Reported) ASU 2018-02 ASU 2016-16 ASU 2014-09 February 3, 2018 (As Adjusted) ASSETS Inventories $ 233,726 $ — $ — $ (824 ) $ 232,902 Prepaid expenses and other current assets 60,668 — (500 ) 5,389 65,557 Other assets, net 16,338 — (5,206 ) — 11,132 LIABILITIES AND SHAREHOLDERS’ EQUITY Other current and deferred liabilities $ 133,715 $ — $ — $ 3,677 $ 137,392 Deferred taxes 7,372 — — 236 7,608 Retained earnings 599,810 39 (5,706 ) 652 594,795 Accumulated other comprehensive loss (44 ) (39 ) — — (83 ) Had the Company not adopted the provisions of ASU 2014-09, the effects of adoption of this standard on our unaudited condensed consolidated statement of income for the thirteen and twenty-six weeks ended August 4, 2018 and unaudited condensed consolidated balance sheet as of August 4, 2018 were as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, 2018 August 4, 2018 As Reported Effects of Standard Balances Without Adoption of ASU 2014-09 As Reported Effects of Standard Balances Without Adoption of ASU 2014-09 Sales $ 544,720 $ 2,584 $ 547,304 $ 1,106,535 $ (4,078 ) $ 1,102,457 Cost of Goods Sold 347,853 694 348,547 682,800 (2,171 ) 680,629 Selling, general and administrative expenses 174,089 1,426 175,515 360,508 (637 ) 359,871 August 4, 2018 As Reported Effects of Standard Balances Without Adoption of ASU 2014-09 ASSETS Inventory $ 224,233 $ 1,662 $ 225,895 Prepaid expenses and other current assets 57,301 (4,263 ) 53,038 LIABILITIES AND SHAREHOLDERS' EQUITY Other current and deferred liabilities $ 119,497 $ (1,331 ) $ 118,166 |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Aug. 04, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU 2016-02, Leases , which replaces the existing guidance in Accounting Standard Codification (“ASC”) 840, Leases |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Aug. 04, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Disaggregated Revenue The following table disaggregates our operating segment revenue by brand, which we believe provides a meaningful depiction of the nature of our revenue. Amounts shown include licensing and wholesale income, which is not a significant component of total revenue, and is aggregated within the respective brands in the table below. Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 Chico's $ 286,808 52.7 % $ 302,217 52.2 % $ 587,744 53.1 % $ 612,344 52.7 % WHBM 168,938 31.0 184,396 31.9 351,586 31.8 377,728 32.5 Soma 88,974 16.3 91,968 15.9 167,205 15.1 172,237 14.8 Total Net Sales $ 544,720 100.0 % $ 578,581 100.0 % $ 1,106,535 100.0 % $ 1,162,309 100.0 % Accounting Policies The Company recognizes revenue pursuant ASC 606 as established by ASU 2014-09 (“ASC 606”). Retail sales by our stores are recorded at the point of sale and are net of estimated customer returns, sales discounts under rewards programs and Company issued coupons, promotional discounts and employee discounts. Sales from our websites and catalogs are recognized at the time of shipment. Amounts related to shipping and handling costs billed to customers are recorded in net sales and the related shipping and handling costs are recorded in cost of goods sold in the accompanying unaudited condensed consolidated statements of income. Amounts paid by customers to cover shipping and handling costs are immaterial. Our policy towards taxes assessed by a government authority directly imposed on revenue producing transactions between a seller and a customer is, and has been, to exclude all such taxes from revenue. Licensing and wholesale income, which is not a significant component of total revenue, is recognized based upon delivery of products, except when the customer has a contractual right of return. We sell gift cards in stores, on our e-commerce website and through third parties. Our gift cards do not have expiration dates. We account for gift cards by recognizing a liability at the time the gift card is sold. The liability is relieved and revenue is recognized, net of third party sales commissions, for gift cards upon redemption. In addition, we recognize revenue for the amount of gift cards expected to go unredeemed (commonly referred to as gift card breakage) under the redemption recognition method. This method records gift card breakage as revenue on a proportional basis over the redemption period based on our historical gift card breakage rate. We determine the gift card breakage rate based on our historical redemption patterns. We recognize revenue on the remaining unredeemed gift cards based on determining that the likelihood of the gift card being redeemed is remote and that there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions. Soma offers a points-based loyalty program in which customers earn points based on purchases. Attaining specified loyalty point levels results in the issuance of reward coupons to discount future purchases. As program members accumulate points, we accrue the estimated future liability, adjusted for expected redemption rates and expirations. The liability is relieved and revenue is recognized for loyalty point reward coupons upon redemption. In addition, we recognize revenue on unredeemed points when it can be determined that the likelihood of the point being redeemed is remote and there is no legal obligation to remit the point value. We determine the loyalty point breakage rate based on historical and redemption patterns. As part of the normal sales cycle, we receive customer merchandise returns related to store, website and catalog sales. To account for the financial impact of potential customer merchandise returns, we estimate future returns on previously sold merchandise. Reductions in sales and gross margin are recorded for estimated merchandise returns based on return history, current sales levels and projected future return levels. The Company's accounting policies and treatment over revenue recognition are consistent with the provisions of ASC 606 and represent a faithful depiction of the transfer of promised goods or services to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Contract Liability Contract liabilities on the unaudited condensed consolidated balance sheet were comprised of obligations associated with our gift card and customer loyalty programs. As of August 4, 2018 and February 3, 2018 , contract liabilities primarily consisted of gift cards of $31.2 million and $43.6 million , respectively. For the thirteen weeks and twenty-six weeks ended August 4, 2018 , the Company recognized $6.9 million and $21.9 million , respectively, of revenue that was previously included in the gift card contract liability as of February 3, 2018 . The contract liability for our loyalty program was not material as of August 4, 2018 and February 3, 2018 . Performance Obligation For the thirteen weeks and twenty-six weeks ended August 4, 2018 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Aug. 04, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION For the twenty-six weeks ended August 4, 2018 and July 29, 2017 , share-based compensation expense was $10.2 million and $10.2 million , respectively. As of August 4, 2018 , approximately 7.0 million shares remain available for future grants of equity awards under our Amended and Restated 2012 Omnibus Stock and Incentive Plan, which was amended and restated effective June 22, 2017. Restricted Stock Awards Restricted stock awards vest in equal annual installments over a three -year period from the date of grant. Restricted stock award activity for the twenty-six weeks ended August 4, 2018 was as follows: Number of Weighted Unvested, beginning of period 2,328,259 $ 13.08 Granted 1,889,950 9.73 Vested (951,795 ) 13.24 Forfeited (171,282 ) 11.95 Unvested, end of period 3,095,132 11.05 Performance-based Stock Units For the twenty-six weeks ended August 4, 2018 , we granted performance-based restricted stock units (“PSUs”), contingent upon the achievement of Company-specific performance goals during the three fiscal years 2018-2020 . Any units earned as a result of the achievement of this goal will vest 100% three years from the date of grant and will be settled in shares of our common stock. Performance-based restricted stock unit activity for the twenty-six weeks ended August 4, 2018 was as follows: Number of Units/ Weighted Unvested, beginning of period 690,950 $ 13.65 Granted 725,300 9.87 Vested (186,782 ) 13.08 Forfeited (70,696 ) 13.28 Unvested, end of period 1,158,772 11.40 Stock Option Awards For the twenty-six weeks ended August 4, 2018 and July 29, 2017 , we did not grant any stock options. Stock option activity for the twenty-six weeks ended August 4, 2018 was as follows: Number of Weighted Outstanding, beginning of period 368,745 $ 12.36 Granted — — Exercised (14,550 ) 5.22 Forfeited or expired (109,300 ) 13.40 Outstanding and exercisable at August 4, 2018 244,895 12.31 |
Income Taxes
Income Taxes | 6 Months Ended |
Aug. 04, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The provision for income taxes is based on a current estimate of the annual effective tax rate and is adjusted as necessary for quarterly events. 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. For the thirteen weeks ended August 4, 2018 , the Company's 25.4% effective tax rate for income taxes differed from the Company’s federal income tax statutory rate of 21% primarily because of the effects of state and local taxes. The Company's provisions for income taxes for the thirteen weeks ended August 4, 2018 and July 29, 2017 included favorable audit settlements of approximately $0.2 million and $1.1 million , respectively. These items as well as the enactment of the Tax Act resulted in an effective tax rate for the thirteen weeks ended August 4, 2018 of 25.4% compared to 35.1% for the thirteen weeks ended July 29, 2017 . For the twenty-six weeks ended August 4, 2018 and July 29, 2017 , the Company's effective tax rate was 27.0% and 37.0% , respectively. The 10.0% reduction in the effective rate was primarily the result of the Tax Act, partially offset by a 130 basis point increase due to employee share-based payment accounting and a 95 basis point increase due to favorable tax audit settlements in the prior year. In accordance with Staff Accounting Bulletin No. 118, the Company is performing an ongoing analysis of information necessary to estimate the accounting for the impacts of the Tax Act. We will continue to analyze additional information and guidance related to the Tax Act as supplemental legislation, regulatory guidance, or evolving technical interpretations become available. Consequently, reasonable estimates of the impact of the Tax Act on the Company’s deferred tax balances and executive compensation deductions have been reported as provisional, as defined in Staff Accounting Bulletin No. 118. We expect to complete our analysis no later than the fourth quarter of fiscal 2018 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Aug. 04, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE In accordance with relevant accounting guidance, unvested share-based payment awards that include non-forfeitable rights to dividends, whether paid or unpaid, are considered participating securities. As a result, such awards are required to be included in the calculation of earnings per common share pursuant to the “two-class” method. For the Company, participating securities are comprised entirely of unvested restricted stock awards and PSUs that have met their relevant performance criteria. Earnings per share (“EPS”) is determined using the two-class method when it is more dilutive than the treasury stock method. Basic EPS excludes dilution and is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period, including participating securities. Diluted EPS reflects the dilutive effect of potential common shares from non-participating securities such as stock options, PSUs and restricted stock units. The following table sets forth the computation of basic and diluted EPS shown on the face of the accompanying condensed consolidated statements of income: Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 Numerator Net income $ 16,768 $ 22,716 $ 45,772 $ 56,335 Net income and dividends declared allocated to participating securities (444 ) (537 ) (1,169 ) (1,286 ) Net income available to common shareholders $ 16,324 $ 22,179 $ 44,603 $ 55,049 Denominator Weighted average common shares outstanding – basic 124,730 125,643 125,003 125,847 Dilutive effect of non-participating securities 44 34 51 43 Weighted average common and common equivalent shares outstanding – diluted 124,774 125,677 125,054 125,890 Net Income per Share: Basic $ 0.13 $ 0.18 $ 0.36 $ 0.44 Diluted $ 0.13 $ 0.18 $ 0.36 $ 0.44 For the thirteen weeks ended August 4, 2018 and July 29, 2017 , 0.8 million and 0.8 million potential shares of common stock, respectively, were excluded from the diluted per share calculation relating to non-participating securities, because the effect of including these potential shares was antidilutive. For the twenty-six weeks ended August 4, 2018 and July 29, 2017 , 0.8 million and 0.7 million |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Aug. 04, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Our financial instruments consist of cash, money market accounts, marketable securities, assets held in our non-qualified deferred compensation plan, accounts receivable and payable, and debt. Cash, accounts receivable and accounts payable are carried at cost, which approximates their fair value due to the short-term nature of the instruments. Marketable securities are classified as available-for-sale and as of August 4, 2018 generally consist of corporate bonds, U.S. government agencies, municipal securities, and commercial paper with $41.0 million of securities with maturity dates within one year or less and $20.7 million with maturity dates over one year and less than two years. We consider all marketable securities available-for-sale, including those with maturity dates beyond 12 months, and therefore classify these securities within current assets on the condensed consolidated balance sheets as they are available to support current operational liquidity needs. Marketable securities are carried at fair value, with the unrealized holding gains and losses, net of income taxes, reflected in accumulated other comprehensive income until realized. For the purposes of computing realized and unrealized gains and losses, cost is determined on a specific identification basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Entities are required to use a three-level hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows: Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 — Unadjusted quoted prices in active markets for similar assets or liabilities, or; Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or; Inputs other than quoted prices that are observable for the asset or liability Level 3 — Unobservable inputs for the asset or liability We measure certain financial assets at fair value on a recurring basis, including our marketable securities, which are classified as available-for-sale securities, certain cash equivalents, specifically our money market accounts and assets held in our non-qualified deferred compensation plan. The money market accounts are valued based on quoted market prices in active markets. Our marketable securities are generally valued based on other observable inputs for those securities (including market corroborated pricing or other models that utilize observable inputs such as interest rates and yield curves) based on information provided by independent third-party pricing entities, except for U.S. government securities which are valued based on quoted market prices in active markets. The investments in our non-qualified deferred compensation plan are valued using quoted market prices and are included in other assets on our consolidated balance sheets. From time to time, we measure certain assets at fair value on a non-recurring basis. This includes the evaluation of long-lived assets, goodwill and other intangible assets for impairment using Company-specific assumptions which would fall within Level 3 of the fair value hierarchy. To assess the fair value of goodwill, we utilize both an income approach and a market approach. Inputs used to calculate the fair value based on the income approach primarily include estimated future cash flows, discounted at a rate that approximates the cost of capital of a market participant. Inputs used to calculate the fair value based on the market approach include identifying sales and EBITDA multiples based on guidelines for similar publicly traded companies and recent transactions. To assess the fair value of trade names, we utilize a relief from royalty approach. Inputs used to calculate the fair value of the trade names primarily include future sales projections, discounted at a rate that approximates the cost of capital of a market participant and an estimated royalty rate. To assess the fair value of long-term debt, we utilize a discounted future cash flow model using current borrowing rates for similar types of debt of comparable maturities. Fair value calculations contain significant judgments and estimates, which may differ from actual results due to, among other things, economic conditions, changes to the business model or changes in operating performance. During the quarter ended August 4, 2018 , we did not make any transfers between Level 1 and Level 2 financial assets. Furthermore, as of August 4, 2018 , February 3, 2018 and July 29, 2017 , we did not have any Level 3 financial assets measured on a recurring basis. We conduct reviews on a quarterly basis to verify pricing, assess liquidity and determine if significant inputs have changed that would impact the fair value hierarchy disclosure. In accordance with the provisions of the guidance, we categorized our financial assets and liabilities which are valued on a recurring basis, based on the priority of the inputs to the valuation technique for the instruments, as follows: Fair Value Measurements at Reporting Date Using Balance as of August 4, 2018 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Financial Assets: Current Assets Cash equivalents: Money market accounts $ 149 $ 149 $ — $ — Marketable securities: Municipal securities 3,423 — 3,423 — U.S. government agencies 6,773 — 6,773 — Corporate bonds 46,542 — 46,542 — Commercial paper 4,989 — 4,989 — Noncurrent Assets Deferred compensation plan 7,258 7,258 — — Total $ 69,134 $ 7,407 $ 61,727 $ — Financial Liabilities: Long-term debt (1) $ 61,250 $ — $ 60,929 $ — Balance as of February 3, 2018 Financial Assets: Current Assets Cash equivalents: Money market accounts $ 1,250 $ 1,250 $ — $ — Marketable securities: Municipal securities 6,557 — 6,557 — U.S. government agencies 12,744 — 12,744 — Corporate bonds 37,030 — 37,030 — Commercial paper 3,729 — 3,729 — Noncurrent Assets Deferred compensation plan 7,315 7,315 — — Total $ 68,625 $ 8,565 $ 60,060 $ — Financial Liabilities: Long-term debt (1) $ 68,601 $ — $ 69,036 $ — Balance as of July 29, 2017 Financial Assets: Current Assets Cash equivalents: Money market accounts $ 288 $ 288 $ — $ — Marketable securities: Municipal securities 6,705 — 6,705 — U.S. government agencies 16,754 — 16,754 — Corporate bonds 20,897 — 20,897 — Commercial paper 6,522 — 6,522 — Noncurrent Assets Deferred compensation plan 6,487 6,487 — — Total $ 57,653 $ 6,775 $ 50,878 $ — Financial Liabilities: Long-term debt (1) $ 76,068 $ — $ 76,552 $ — 1 The carrying value of long-term debt as of July 29, 2017 and February 3, 2018 includes the current and long-term portions and the remaining unamortized debt issuance costs. As of August 4, 2018 |
Debt
Debt | 6 Months Ended |
Aug. 04, 2018 | |
Debt Disclosure [Abstract] | |
Debt | DEBT On August 2, 2018, the Company and certain of its domestic subsidiaries entered into a credit agreement (the “Agreement”) as borrowers and guarantors, with Wells Fargo Bank, National Association, as Agent, letter of credit issuer and swing line lender, and certain lenders party thereto. Our obligations under the Agreement are guaranteed by the subsidiary guarantors and secured by a lien on certain assets of the Company and the subsidiary borrowers and guarantors, including inventory, accounts receivable, cash deposits, and certain insurance proceeds. The Agreement provides for a five-year asset-based senior secured revolving loan and letter of credit facility of up to $200.0 million , maturing August 2, 2023. In addition, during the term of the Agreement, the Company may increase the commitments under the Agreement by up to an additional $100.0 million , subject to customary conditions, including obtaining the agreements from the lenders to provide such commitment increase. The interest rate applicable to the loans under the Agreement will be equal to, at the Company’s option, either a base rate, determined by reference to the federal funds rate, plus an interest rate margin, or a LIBO rate, plus an interest rate margin, in each case, depending on availability under the Agreement. The Company expects borrowings to be at a LIBO rate, plus an interest rate margin. In addition, the Company will pay a commitment fee per annum on the unused portion of the commitments under the Agreement. The Agreement contains customary representations, warranties, and affirmative covenants, including the requirement to maintain certain financial ratios. The Company was in compliance with the applicable ratio requirements and other covenants at August 4, 2018 . As of August 4, 2018 , our outstanding debt consisted of $61.3 million in borrowings under the Agreement, resulting in $138.7 million available for borrowings under the revolving loan and letter of credit facility. As of August 4, 2018 , an unamortized debt discount of $0.6 million was outstanding related to the Agreement and is presented in other current assets in the accompanying unaudited consolidated balance sheet. The credit agreement entered into on May 4, 2015 with JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America, N.A., as Syndication Agent and other lenders, which was unsecured and had provided for a term loan commitment in the amount of $100 million and a $100 million revolving credit facility, was terminated on August 2, 2018 in connection with the Company entering into the Agreement described above, and all outstanding amounts thereunder were repaid. We used the proceeds from the initial draw of the revolving loan of the Agreement to repay such obligations. The following table provides additional detail on our outstanding debt: August 4, 2018 February 3, 2018 July 29, 2017 Credit Agreement, net $ 61,250 $ 68,601 $ 76,068 Less: current portion — (15,000 ) (15,000 ) Total Long-Term Debt $ 61,250 $ 53,601 $ 61,068 |
Share Repurchases
Share Repurchases | 6 Months Ended |
Aug. 04, 2018 | |
Equity [Abstract] | |
Share Repurchases | SHARE REPURCHASES During the twenty-six weeks ended August 4, 2018 , under our $300 million share repurchase program announced in November 2015, we repurchased 3.5 million shares at a total cost of approximately $30.8 million , at a weighted average of $8.70 per share. As of August 4, 2018 , the Company has $105.4 million |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Aug. 04, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES In July 2015, White House Black Market, Inc. (WHBM) was named as a defendant in Altman v. White House Black Market, Inc., a putative class action filed in the United States District Court for the Northern District of Georgia. The complaint alleges that WHBM, in violation of federal law, willfully published more than the last five digits of a credit or debit card number on customers' point-of-sale receipts. The plaintiff seeks an award of statutory damages of $100 to $1,000 for each alleged willful violation of the law, as well as attorneys’ fees, costs and punitive damages. The Company denies the material allegations of the complaint and believes the case is without merit. On February 12, 2018, the District Court issued an order certifying the class. On April 9, 2018, the District Court, sua sponte , issued an order granting WHBM’s earlier 2016 request to appeal, to the Eleventh Circuit Court of Appeals, the District Court’s ruling that the plaintiff has standing to maintain the lawsuit. On April 19, 2018, WHBM filed a petition for review in the Eleventh Circuit Court of Appeals. In the meantime, the District Court stayed all further proceedings in the case pending the outcome of the appeal in the Eleventh Circuit Court of Appeals. On July 12, 2018, the plaintiff and WHBM notified the Eleventh Circuit Court of Appeals that the plaintiff and WHBM reached a class settlement on all claims and therefore voluntarily dismissed WHBM’s appeal to the Eleventh Circuit Court of Appeals. On August 2, 2018, the United States District Court for the Northern District of Georgia reopened the proceedings on the case for purposes of reviewing/approving the proposed settlement. WHBM and the plaintiff have until September 17, 2018 to file their settlement motion with the United States District Court for the Northern District of Georgia. The proposed settlement would not have a material adverse effect on the Company’s consolidated financial condition or results of operations. However, no assurance can be given that the United States District Court for the Northern District of Georgia will approve the proposed settlement. If the proposed settlement is rejected and the case were to proceed as a class action and the Company were to be unsuccessful in its defense on the merits, then the ultimate resolution of the case could have a material adverse effect on the Company’s consolidated financial condition or results of operations. Other than as noted above, we are not currently a party to any material legal proceedings other than claims and lawsuits arising in the normal course of business. All such matters are subject to uncertainties, and outcomes may not be predictable. Consequently, the ultimate aggregate amounts of monetary liability or financial impact with respect to these matters as of August 4, 2018 |
Basis of Presentation and Sum17
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Aug. 04, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements of Chico’s FAS, Inc. and its wholly-owned subsidiaries (collectively, the “Company”) have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by accounting principles generally accepted in the U.S. (“U.S. GAAP”) for complete financial statements. In the opinion of management, such interim financial statements reflect all normal, recurring adjustments considered necessary to present fairly the condensed consolidated financial position, the results of operations and cash flows for the interim periods presented. All significant intercompany balances and transactions have been eliminated in consolidation. |
New Accounting Pronouncements | Adoption of New Accounting Pronouncements In the first quarter of fiscal 2018, we early adopted the guidance of Accounting Standards Update (“ASU”) 2018-02, Income Statement - Reporting Comprehensive Income , which provides entities the option to reclassify to retained earnings tax effects related to items in accumulated other comprehensive income (“OCI”) that have been stranded in accumulated OCI as a result of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The provisions of ASU 2018-02 were adopted on a prospective basis with a cumulative adjustment to opening retained earnings, and prior period amounts have not been adjusted and continue to be reported in accordance with the previous guidance. In the first quarter of fiscal 2018, the Company recorded an immaterial cumulative effect adjustment as an increase to opening retained earnings upon adoption of ASU 2018-02 as detailed in the table below. In the second quarter of fiscal 2018, we adopted the guidance of ASU 2017-04, Intangibles - Goodwill and Other: S implifying the Test for Goodwill Impairment , which simplifies the subsequent measurement of goodwill by eliminating the second step from the quantitative goodwill impairment test. Under this guidance, annual or interim goodwill impairment testing will be performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge will then be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the carrying value of goodwill. The provisions of ASU 2017-04 were adopted on a prospective basis and did not have an impact on the Company’s unaudited consolidated financial statements. In the first quarter of fiscal 2018, we adopted the guidance of ASU 2016-16, Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory , which requires companies to recognize the income tax effects of intercompany sales or transfers of other assets in the income statement as income tax expense (benefit) in the period the sale or transfer occurs. Additionally, companies are required to evaluate whether the tax effects of the intercompany sales or transfers of non-inventory assets should be included in their estimates of annual effective tax rates by using today's interim guidance on income tax accounting. The provisions of ASU 2016-16 were adopted on a modified retrospective basis with a cumulative adjustment to opening retained earnings, and prior period amounts have not been adjusted and continue to be reported in accordance with the previous guidance. In the first quarter of fiscal 2018, the Company recorded a cumulative effect adjustment of $5.7 million as a decrease to opening retained earnings upon adoption of ASU 2016-16. Any further tax impacts on sales or transfers of intercompany assets other than inventory will be recognized as incurred. In the first quarter of fiscal 2018, we adopted the guidance of ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , under which entities are no longer able to recognize unrealized holding gains and losses on equity securities they classify as available-for-sale in other comprehensive income but instead must recognize the change in fair value in net income. The updated guidance further eliminated equity security classification categories (i.e., trading and available-for-sale). The new standard does not change the guidance for classifying and measuring investments in debt securities. The provisions of ASU 2016-01 were adopted on a prospective basis and did not have an impact on the Company’s unaudited consolidated financial statements. In the first quarter of fiscal 2018, we adopted the guidance of ASU 2014-09, Revenue from Contracts with Customers. The updated guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. Through our evaluation of the impact of this ASU 2014-09, we identified certain changes that were made to our accounting policies, practices, systems and controls which include: 1) revenue related to our online sales will be recognized at the shipping point rather than upon delivery to customer; 2) timing of our recognition of advertising expenses, whereby certain expenses that previously were amortized over their expected period of future benefit will be expensed the first time the advertisement appears; 3) presentation of estimated merchandise returns as both an asset, equal to the inventory value net of processing costs, and a corresponding return liability, compared to the previous practice of recording an estimated net return liability; and 4) the recognition of any future franchise development fees will be recognized over the license period. Upon adoption, the Company's accounting policies and treatment over revenue recognition are consistent with the provisions of ASU 2014-09 and represent a faithful depiction of the transfer of promised goods or services to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The provisions of ASU 2014-09 were adopted on a modified retrospective basis with a cumulative adjustment to opening retained earnings, and prior period amounts have not been adjusted and continue to be reported in accordance with the previous guidance. In the first quarter of fiscal 2018, the Company recorded a cumulative effect adjustment of $0.7 million In February 2016, the FASB issued ASU 2016-02, Leases , which replaces the existing guidance in Accounting Standard Codification (“ASC”) 840, Leases |
Revenue Recognition | The Company recognizes revenue pursuant ASC 606 as established by ASU 2014-09 (“ASC 606”). Retail sales by our stores are recorded at the point of sale and are net of estimated customer returns, sales discounts under rewards programs and Company issued coupons, promotional discounts and employee discounts. Sales from our websites and catalogs are recognized at the time of shipment. Amounts related to shipping and handling costs billed to customers are recorded in net sales and the related shipping and handling costs are recorded in cost of goods sold in the accompanying unaudited condensed consolidated statements of income. Amounts paid by customers to cover shipping and handling costs are immaterial. Our policy towards taxes assessed by a government authority directly imposed on revenue producing transactions between a seller and a customer is, and has been, to exclude all such taxes from revenue. Licensing and wholesale income, which is not a significant component of total revenue, is recognized based upon delivery of products, except when the customer has a contractual right of return. We sell gift cards in stores, on our e-commerce website and through third parties. Our gift cards do not have expiration dates. We account for gift cards by recognizing a liability at the time the gift card is sold. The liability is relieved and revenue is recognized, net of third party sales commissions, for gift cards upon redemption. In addition, we recognize revenue for the amount of gift cards expected to go unredeemed (commonly referred to as gift card breakage) under the redemption recognition method. This method records gift card breakage as revenue on a proportional basis over the redemption period based on our historical gift card breakage rate. We determine the gift card breakage rate based on our historical redemption patterns. We recognize revenue on the remaining unredeemed gift cards based on determining that the likelihood of the gift card being redeemed is remote and that there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions. Soma offers a points-based loyalty program in which customers earn points based on purchases. Attaining specified loyalty point levels results in the issuance of reward coupons to discount future purchases. As program members accumulate points, we accrue the estimated future liability, adjusted for expected redemption rates and expirations. The liability is relieved and revenue is recognized for loyalty point reward coupons upon redemption. In addition, we recognize revenue on unredeemed points when it can be determined that the likelihood of the point being redeemed is remote and there is no legal obligation to remit the point value. We determine the loyalty point breakage rate based on historical and redemption patterns. As part of the normal sales cycle, we receive customer merchandise returns related to store, website and catalog sales. To account for the financial impact of potential customer merchandise returns, we estimate future returns on previously sold merchandise. Reductions in sales and gross margin are recorded for estimated merchandise returns based on return history, current sales levels and projected future return levels. |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Our financial instruments consist of cash, money market accounts, marketable securities, assets held in our non-qualified deferred compensation plan, accounts receivable and payable, and debt. Cash, accounts receivable and accounts payable are carried at cost, which approximates their fair value due to the short-term nature of the instruments. Marketable securities are classified as available-for-sale and as of August 4, 2018 generally consist of corporate bonds, U.S. government agencies, municipal securities, and commercial paper with $41.0 million of securities with maturity dates within one year or less and $20.7 million with maturity dates over one year and less than two years. We consider all marketable securities available-for-sale, including those with maturity dates beyond 12 months, and therefore classify these securities within current assets on the condensed consolidated balance sheets as they are available to support current operational liquidity needs. Marketable securities are carried at fair value, with the unrealized holding gains and losses, net of income taxes, reflected in accumulated other comprehensive income until realized. For the purposes of computing realized and unrealized gains and losses, cost is determined on a specific identification basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Entities are required to use a three-level hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows: Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 — Unadjusted quoted prices in active markets for similar assets or liabilities, or; Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or; Inputs other than quoted prices that are observable for the asset or liability Level 3 — Unobservable inputs for the asset or liability We measure certain financial assets at fair value on a recurring basis, including our marketable securities, which are classified as available-for-sale securities, certain cash equivalents, specifically our money market accounts and assets held in our non-qualified deferred compensation plan. The money market accounts are valued based on quoted market prices in active markets. Our marketable securities are generally valued based on other observable inputs for those securities (including market corroborated pricing or other models that utilize observable inputs such as interest rates and yield curves) based on information provided by independent third-party pricing entities, except for U.S. government securities which are valued based on quoted market prices in active markets. The investments in our non-qualified deferred compensation plan are valued using quoted market prices and are included in other assets on our consolidated balance sheets. From time to time, we measure certain assets at fair value on a non-recurring basis. This includes the evaluation of long-lived assets, goodwill and other intangible assets for impairment using Company-specific assumptions which would fall within Level 3 of the fair value hierarchy. To assess the fair value of goodwill, we utilize both an income approach and a market approach. Inputs used to calculate the fair value based on the income approach primarily include estimated future cash flows, discounted at a rate that approximates the cost of capital of a market participant. Inputs used to calculate the fair value based on the market approach include identifying sales and EBITDA multiples based on guidelines for similar publicly traded companies and recent transactions. To assess the fair value of trade names, we utilize a relief from royalty approach. Inputs used to calculate the fair value of the trade names primarily include future sales projections, discounted at a rate that approximates the cost of capital of a market participant and an estimated royalty rate. To assess the fair value of long-term debt, we utilize a discounted future cash flow model using current borrowing rates for similar types of debt of comparable maturities. |
Basis of Presentation and Sum18
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Effects of Newly Adopted Accounting Standards | The following table presents the effects that the aforementioned adopted accounting standards had on our February 3, 2018 condensed consolidated balance sheet: February 3, 2018 (As Reported) ASU 2018-02 ASU 2016-16 ASU 2014-09 February 3, 2018 (As Adjusted) ASSETS Inventories $ 233,726 $ — $ — $ (824 ) $ 232,902 Prepaid expenses and other current assets 60,668 — (500 ) 5,389 65,557 Other assets, net 16,338 — (5,206 ) — 11,132 LIABILITIES AND SHAREHOLDERS’ EQUITY Other current and deferred liabilities $ 133,715 $ — $ — $ 3,677 $ 137,392 Deferred taxes 7,372 — — 236 7,608 Retained earnings 599,810 39 (5,706 ) 652 594,795 Accumulated other comprehensive loss (44 ) (39 ) — — (83 ) Had the Company not adopted the provisions of ASU 2014-09, the effects of adoption of this standard on our unaudited condensed consolidated statement of income for the thirteen and twenty-six weeks ended August 4, 2018 and unaudited condensed consolidated balance sheet as of August 4, 2018 were as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, 2018 August 4, 2018 As Reported Effects of Standard Balances Without Adoption of ASU 2014-09 As Reported Effects of Standard Balances Without Adoption of ASU 2014-09 Sales $ 544,720 $ 2,584 $ 547,304 $ 1,106,535 $ (4,078 ) $ 1,102,457 Cost of Goods Sold 347,853 694 348,547 682,800 (2,171 ) 680,629 Selling, general and administrative expenses 174,089 1,426 175,515 360,508 (637 ) 359,871 August 4, 2018 As Reported Effects of Standard Balances Without Adoption of ASU 2014-09 ASSETS Inventory $ 224,233 $ 1,662 $ 225,895 Prepaid expenses and other current assets 57,301 (4,263 ) 53,038 LIABILITIES AND SHAREHOLDERS' EQUITY Other current and deferred liabilities $ 119,497 $ (1,331 ) $ 118,166 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of the Disaggregation of Revenue by Brand | The following table disaggregates our operating segment revenue by brand, which we believe provides a meaningful depiction of the nature of our revenue. Amounts shown include licensing and wholesale income, which is not a significant component of total revenue, and is aggregated within the respective brands in the table below. Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 Chico's $ 286,808 52.7 % $ 302,217 52.2 % $ 587,744 53.1 % $ 612,344 52.7 % WHBM 168,938 31.0 184,396 31.9 351,586 31.8 377,728 32.5 Soma 88,974 16.3 91,968 15.9 167,205 15.1 172,237 14.8 Total Net Sales $ 544,720 100.0 % $ 578,581 100.0 % $ 1,106,535 100.0 % $ 1,162,309 100.0 % |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Restricted Stock Activity | Restricted stock award activity for the twenty-six weeks ended August 4, 2018 was as follows: Number of Weighted Unvested, beginning of period 2,328,259 $ 13.08 Granted 1,889,950 9.73 Vested (951,795 ) 13.24 Forfeited (171,282 ) 11.95 Unvested, end of period 3,095,132 11.05 |
Schedule of Performance-Based Restricted Stock Unit Activity | Performance-based restricted stock unit activity for the twenty-six weeks ended August 4, 2018 was as follows: Number of Units/ Weighted Unvested, beginning of period 690,950 $ 13.65 Granted 725,300 9.87 Vested (186,782 ) 13.08 Forfeited (70,696 ) 13.28 Unvested, end of period 1,158,772 11.40 |
Summary of Stock Option Activity | Stock option activity for the twenty-six weeks ended August 4, 2018 was as follows: Number of Weighted Outstanding, beginning of period 368,745 $ 12.36 Granted — — Exercised (14,550 ) 5.22 Forfeited or expired (109,300 ) 13.40 Outstanding and exercisable at August 4, 2018 244,895 12.31 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted EPS shown on the face of the accompanying condensed consolidated statements of income: Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 Numerator Net income $ 16,768 $ 22,716 $ 45,772 $ 56,335 Net income and dividends declared allocated to participating securities (444 ) (537 ) (1,169 ) (1,286 ) Net income available to common shareholders $ 16,324 $ 22,179 $ 44,603 $ 55,049 Denominator Weighted average common shares outstanding – basic 124,730 125,643 125,003 125,847 Dilutive effect of non-participating securities 44 34 51 43 Weighted average common and common equivalent shares outstanding – diluted 124,774 125,677 125,054 125,890 Net Income per Share: Basic $ 0.13 $ 0.18 $ 0.36 $ 0.44 Diluted $ 0.13 $ 0.18 $ 0.36 $ 0.44 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets Valued on a Recurring Basis | In accordance with the provisions of the guidance, we categorized our financial assets and liabilities which are valued on a recurring basis, based on the priority of the inputs to the valuation technique for the instruments, as follows: Fair Value Measurements at Reporting Date Using Balance as of August 4, 2018 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Financial Assets: Current Assets Cash equivalents: Money market accounts $ 149 $ 149 $ — $ — Marketable securities: Municipal securities 3,423 — 3,423 — U.S. government agencies 6,773 — 6,773 — Corporate bonds 46,542 — 46,542 — Commercial paper 4,989 — 4,989 — Noncurrent Assets Deferred compensation plan 7,258 7,258 — — Total $ 69,134 $ 7,407 $ 61,727 $ — Financial Liabilities: Long-term debt (1) $ 61,250 $ — $ 60,929 $ — Balance as of February 3, 2018 Financial Assets: Current Assets Cash equivalents: Money market accounts $ 1,250 $ 1,250 $ — $ — Marketable securities: Municipal securities 6,557 — 6,557 — U.S. government agencies 12,744 — 12,744 — Corporate bonds 37,030 — 37,030 — Commercial paper 3,729 — 3,729 — Noncurrent Assets Deferred compensation plan 7,315 7,315 — — Total $ 68,625 $ 8,565 $ 60,060 $ — Financial Liabilities: Long-term debt (1) $ 68,601 $ — $ 69,036 $ — Balance as of July 29, 2017 Financial Assets: Current Assets Cash equivalents: Money market accounts $ 288 $ 288 $ — $ — Marketable securities: Municipal securities 6,705 — 6,705 — U.S. government agencies 16,754 — 16,754 — Corporate bonds 20,897 — 20,897 — Commercial paper 6,522 — 6,522 — Noncurrent Assets Deferred compensation plan 6,487 6,487 — — Total $ 57,653 $ 6,775 $ 50,878 $ — Financial Liabilities: Long-term debt (1) $ 76,068 $ — $ 76,552 $ — 1 The carrying value of long-term debt as of July 29, 2017 and February 3, 2018 includes the current and long-term portions and the remaining unamortized debt issuance costs. As of August 4, 2018 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table provides additional detail on our outstanding debt: August 4, 2018 February 3, 2018 July 29, 2017 Credit Agreement, net $ 61,250 $ 68,601 $ 76,068 Less: current portion — (15,000 ) (15,000 ) Total Long-Term Debt $ 61,250 $ 53,601 $ 61,068 |
Basis of Presentation and Sum24
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 3 Months Ended |
May 05, 2018USD ($) | |
Accounting Standards Update 2016-16 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect adjustment to beginning retained earnings | $ (5.7) |
Accounting Standards Update 2014-09 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect adjustment to beginning retained earnings | $ 0.7 |
Basis of Presentation and Sum25
Basis of Presentation and Summary of Significant Accounting Policies - Effects of Newly Adopted Accounting Standards (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | Feb. 03, 2018 | |
ASSETS | |||||
Inventories | $ 224,233 | $ 235,167 | $ 224,233 | $ 235,167 | $ 233,726 |
Prepaid expenses and other current assets | 57,301 | 49,381 | 57,301 | 49,381 | 60,668 |
Other assets, net | 13,327 | 16,745 | 13,327 | 16,745 | 16,338 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Other current and deferred liabilities | 119,497 | 123,137 | 119,497 | 123,137 | 133,715 |
Deferred taxes | 4,640 | 11,222 | 4,640 | 11,222 | 7,372 |
Retained earnings | 607,643 | 565,650 | 607,643 | 565,650 | 599,810 |
Accumulated other comprehensive (loss) income | (115) | 113 | (115) | 113 | (44) |
Net Sales | 544,720 | 578,581 | 1,106,535 | 1,162,309 | |
Cost of goods sold | 347,853 | 369,480 | 682,800 | 715,795 | |
Selling, general and administrative expenses | 174,089 | $ 173,642 | 360,508 | $ 356,181 | |
ASU 2018-02 | |||||
ASSETS | |||||
Inventories | 0 | ||||
Prepaid expenses and other current assets | 0 | ||||
Other assets, net | 0 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Other current and deferred liabilities | 0 | ||||
Deferred taxes | 0 | ||||
Retained earnings | 39 | ||||
Accumulated other comprehensive (loss) income | (39) | ||||
ASU 2016-16 | |||||
ASSETS | |||||
Inventories | 0 | ||||
Prepaid expenses and other current assets | (500) | ||||
Other assets, net | (5,206) | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Other current and deferred liabilities | 0 | ||||
Deferred taxes | 0 | ||||
Retained earnings | (5,706) | ||||
Accumulated other comprehensive (loss) income | 0 | ||||
ASU 2014-09 | |||||
ASSETS | |||||
Inventories | (824) | ||||
Prepaid expenses and other current assets | 5,389 | ||||
Other assets, net | 0 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Other current and deferred liabilities | 3,677 | ||||
Deferred taxes | 236 | ||||
Retained earnings | 652 | ||||
Accumulated other comprehensive (loss) income | 0 | ||||
February 3, 2018 (As Adjusted) | |||||
ASSETS | |||||
Inventories | 232,902 | ||||
Prepaid expenses and other current assets | 65,557 | ||||
Other assets, net | 11,132 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Other current and deferred liabilities | 137,392 | ||||
Deferred taxes | 7,608 | ||||
Retained earnings | 594,795 | ||||
Accumulated other comprehensive (loss) income | $ (83) | ||||
Effects of Standard | ASU 2014-09 | |||||
ASSETS | |||||
Inventories | 1,662 | 1,662 | |||
Prepaid expenses and other current assets | (4,263) | (4,263) | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Other current and deferred liabilities | (1,331) | (1,331) | |||
Net Sales | 2,584 | (4,078) | |||
Cost of goods sold | 694 | (2,171) | |||
Selling, general and administrative expenses | 1,426 | (637) | |||
Balances Without Adoption of ASU 2014-09 | |||||
ASSETS | |||||
Inventories | 225,895 | 225,895 | |||
Prepaid expenses and other current assets | 53,038 | 53,038 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Other current and deferred liabilities | 118,166 | 118,166 | |||
Net Sales | 547,304 | 1,102,457 | |||
Cost of goods sold | 348,547 | 680,629 | |||
Selling, general and administrative expenses | $ 175,515 | $ 359,871 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | Feb. 03, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Total Net Sales | $ 544,720 | $ 578,581 | $ 1,106,535 | $ 1,162,309 | |
Total Net Sales, as a percentage | 100.00% | 100.00% | 100.00% | 100.00% | |
Contract liabilities | $ 31,200 | $ 31,200 | $ 43,600 | ||
Contract liability revenue recognized | 6,900 | 21,900 | |||
Chico's | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Net Sales | $ 286,808 | $ 302,217 | $ 587,744 | $ 612,344 | |
Total Net Sales, as a percentage | 52.70% | 52.20% | 53.10% | 52.70% | |
WHBM | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Net Sales | $ 168,938 | $ 184,396 | $ 351,586 | $ 377,728 | |
Total Net Sales, as a percentage | 31.00% | 31.90% | 31.80% | 32.50% | |
Soma | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Net Sales | $ 88,974 | $ 91,968 | $ 167,205 | $ 172,237 | |
Total Net Sales, as a percentage | 16.30% | 15.90% | 15.10% | 14.80% |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 04, 2018 | Jul. 29, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Compensation expense related to stock-based awards | $ 10,238 | $ 10,232 |
Number of shares available for future grants (in shares) | 7,000,000 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of stock options granted (in shares) | 0 | 0 |
Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Performance-Based Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Restricted Stock Awards and PSU Activity (Details) | 6 Months Ended |
Aug. 04, 2018$ / sharesshares | |
Restricted Stock Awards | |
Number of Units/ Shares | |
Unvested, beginning of period, Number of Shares (in shares) | shares | 2,328,259 |
Granted, Number of Shares (in shares) | shares | 1,889,950 |
Vested, Number of Shares (in shares) | shares | (951,795) |
Forfeited, Number of Shares (in shares) | shares | (171,282) |
Unvested, end of period, Number of Shares (in shares) | shares | 3,095,132 |
Weighted Average Grant Date Fair Value | |
Unvested, beginning of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 13.08 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 9.73 |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 13.24 |
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 11.95 |
Unvested, end of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 11.05 |
Performance-Based Stock Units | |
Number of Units/ Shares | |
Unvested, beginning of period, Number of Shares (in shares) | shares | 690,950 |
Granted, Number of Shares (in shares) | shares | 725,300 |
Vested, Number of Shares (in shares) | shares | (186,782) |
Forfeited, Number of Shares (in shares) | shares | (70,696) |
Unvested, end of period, Number of Shares (in shares) | shares | 1,158,772 |
Weighted Average Grant Date Fair Value | |
Unvested, beginning of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 13.65 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 9.87 |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 13.08 |
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 13.28 |
Unvested, end of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 11.40 |
Share-Based Compensation - Su29
Share-Based Compensation - Summary of Stock Option Activity (Details) - $ / shares | 6 Months Ended | |
Aug. 04, 2018 | Jul. 29, 2017 | |
Number of Options | ||
Outstanding at beginning of period, Number of Shares (in shares) | 368,745 | |
Granted, Number of Shares (in shares) | 0 | 0 |
Exercised, Number of Shares (in shares) | (14,550) | |
Forfeited or expired, Number of Shares (in shares) | (109,300) | |
Outstanding at end of period, Number of Shares (in shares) | 244,895 | |
Exercisable at end of period, Number of Shares (in shares) | 244,895 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of period, Weighted Average Exercise Price (in dollars per share) | $ 12.36 | |
Granted, Weighted Average Exercise Price (in dollars per share) | 0 | |
Exercised, Weighted Average Exercise Price (in dollars per share) | 5.22 | |
Forfeited or expired, Weighted Average Exercise Price (in dollars per share) | 13.40 | |
Outstanding at end of period, Weighted Average Exercise Price (in dollars per share) | 12.31 | |
Exercisable at end of period, Weighted Average Exercise Price (in dollars per share) | $ 12.31 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 25.40% | 35.10% | 27.00% | 37.00% |
Favorable audit settlement | $ 0.2 | $ 1.1 | ||
Reduction in effective tax rate | (10.00%) | |||
Increase in effective rate, employee share-based payment accounting | 1.30% | |||
Increase in effective rate, favorable tax audit settlement | 0.95% |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Numerator | ||||
Net Income | $ 16,768 | $ 22,716 | $ 45,772 | $ 56,335 |
Net income and dividends declared allocated to participating securities | (444) | (537) | (1,169) | (1,286) |
Net income available to common shareholders | $ 16,324 | $ 22,179 | $ 44,603 | $ 55,049 |
Denominator | ||||
Weighted average common shares outstanding – basic (in shares) | 124,730 | 125,643 | 125,003 | 125,847 |
Dilutive effect of non-participating securities (in shares) | 44 | 34 | 51 | 43 |
Weighted average common and common equivalent shares outstanding – diluted (in shares) | 124,774 | 125,677 | 125,054 | 125,890 |
Net Income per Share: | ||||
Basic (in dollars per share) | $ 0.13 | $ 0.18 | $ 0.36 | $ 0.44 |
Diluted (in dollars per share) | $ 0.13 | $ 0.18 | $ 0.36 | $ 0.44 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Earnings Per Share [Abstract] | ||||
Number of antidilutive securities (in shares) | 0.8 | 0.8 | 0.8 | 0.7 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Millions | Aug. 04, 2018USD ($) |
Fair Value Disclosures [Abstract] | |
Securities with maturity dates within one year or less | $ 41 |
Securities with maturity dates over one year and less than two years | $ 20.7 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets Valued on a Recurring Basis (Details) - USD ($) $ in Thousands | Aug. 04, 2018 | Feb. 03, 2018 | Jul. 29, 2017 |
Noncurrent Assets | |||
Deferred compensation plan | $ 7,258 | $ 7,315 | $ 6,487 |
Total assets | 69,134 | 68,625 | 57,653 |
Financial Liabilities: | |||
Long-term debt | 61,250 | 68,601 | 76,068 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Noncurrent Assets | |||
Deferred compensation plan | 7,258 | 7,315 | 6,487 |
Total assets | 7,407 | 8,565 | 6,775 |
Financial Liabilities: | |||
Long-term debt | 0 | 0 | 0 |
Significant Other Observable Inputs (Level 2) | |||
Noncurrent Assets | |||
Deferred compensation plan | 0 | 0 | 0 |
Total assets | 61,727 | 60,060 | 50,878 |
Financial Liabilities: | |||
Long-term debt | 60,929 | 69,036 | 76,552 |
Significant Unobservable Inputs (Level 3) | |||
Noncurrent Assets | |||
Deferred compensation plan | 0 | 0 | 0 |
Total assets | 0 | 0 | 0 |
Financial Liabilities: | |||
Long-term debt | 0 | 0 | 0 |
Municipal securities | |||
Current Assets | |||
Marketable securities | 3,423 | 6,557 | 6,705 |
Municipal securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Current Assets | |||
Marketable securities | 0 | 0 | 0 |
Municipal securities | Significant Other Observable Inputs (Level 2) | |||
Current Assets | |||
Marketable securities | 3,423 | 6,557 | 6,705 |
Municipal securities | Significant Unobservable Inputs (Level 3) | |||
Current Assets | |||
Marketable securities | 0 | 0 | 0 |
U.S. government agencies | |||
Current Assets | |||
Marketable securities | 6,773 | 12,744 | 16,754 |
U.S. government agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Current Assets | |||
Marketable securities | 0 | 0 | 0 |
U.S. government agencies | Significant Other Observable Inputs (Level 2) | |||
Current Assets | |||
Marketable securities | 6,773 | 12,744 | 16,754 |
U.S. government agencies | Significant Unobservable Inputs (Level 3) | |||
Current Assets | |||
Marketable securities | 0 | 0 | 0 |
Corporate bonds | |||
Current Assets | |||
Marketable securities | 46,542 | 37,030 | 20,897 |
Corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Current Assets | |||
Marketable securities | 0 | 0 | 0 |
Corporate bonds | Significant Other Observable Inputs (Level 2) | |||
Current Assets | |||
Marketable securities | 46,542 | 37,030 | 20,897 |
Corporate bonds | Significant Unobservable Inputs (Level 3) | |||
Current Assets | |||
Marketable securities | 0 | 0 | 0 |
Commercial paper | |||
Current Assets | |||
Marketable securities | 4,989 | 3,729 | 6,522 |
Commercial paper | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Current Assets | |||
Marketable securities | 0 | 0 | 0 |
Commercial paper | Significant Other Observable Inputs (Level 2) | |||
Current Assets | |||
Marketable securities | 4,989 | 3,729 | 6,522 |
Commercial paper | Significant Unobservable Inputs (Level 3) | |||
Current Assets | |||
Marketable securities | 0 | 0 | 0 |
Money market accounts | |||
Current Assets | |||
Cash equivalents | 149 | 1,250 | 288 |
Money market accounts | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Current Assets | |||
Cash equivalents | 149 | 1,250 | 288 |
Money market accounts | Significant Other Observable Inputs (Level 2) | |||
Current Assets | |||
Cash equivalents | 0 | 0 | 0 |
Money market accounts | Significant Unobservable Inputs (Level 3) | |||
Current Assets | |||
Cash equivalents | $ 0 | $ 0 | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Aug. 02, 2018 | Aug. 04, 2018 | Feb. 03, 2018 | Jul. 29, 2017 | May 04, 2015 |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 61,250,000 | $ 68,601,000 | $ 76,068,000 | ||
Unamortized discount outstanding | 600,000 | ||||
Line of Credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | $ 200,000,000 | $ 100,000,000 | |||
Additional amount available upon request for increase | $ 100,000,000 | ||||
Available for borrowing | $ 138,700,000 | ||||
Term Loan | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 100,000,000 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Thousands | Aug. 04, 2018 | Feb. 03, 2018 | Jul. 29, 2017 |
Debt Disclosure [Abstract] | |||
Credit Agreement, net | $ 61,250 | $ 68,601 | $ 76,068 |
Less: current portion | 0 | (15,000) | (15,000) |
Total Long-Term Debt | $ 61,250 | $ 53,601 | $ 61,068 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Aug. 04, 2018 | Nov. 30, 2015 | |
Equity [Abstract] | ||
Share repurchase program, authorized amount (in shares) | 300,000,000 | |
Shares repurchased (in shares) | 3,500,000 | |
Cost of shares repurchased | $ 30.8 | |
Weighted average cost per share of shares repurchased (in dollars per share) | $ 8.70 | |
Share repurchase program, amount remaining for future repurchases | $ 105.4 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Altman v. White House Black Market, Inc. - Pending Litigation | 1 Months Ended |
Jul. 31, 2015USD ($) | |
Minimum | |
Loss Contingencies [Line Items] | |
Damages sought by plaintiff for each alleged willful violation of the law and other fees and costs | $ 100 |
Maximum | |
Loss Contingencies [Line Items] | |
Damages sought by plaintiff for each alleged willful violation of the law and other fees and costs | $ 1,000 |