Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Mar. 04, 2019 | Aug. 04, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | CHICOS FAS INC | ||
Entity Central Index Key | 0000897429 | ||
Current Fiscal Year End Date | --02-02 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Feb. 2, 2019 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding | 116,497,167 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,130 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Revenues [Abstract] | |||
Net Sales | $ 2,131,140 | $ 2,282,379 | $ 2,476,410 |
Net Sales, % of Sales | 100.00% | 100.00% | 100.00% |
Cost of goods sold | $ 1,367,726 | $ 1,417,602 | $ 1,529,574 |
Cost of goods sold, % of Sales | 64.20% | 62.10% | 61.80% |
Gross Margin | $ 763,414 | $ 864,777 | $ 946,836 |
Gross Margin, % of Sales | 35.80% | 37.90% | 38.20% |
Selling, general and administrative expenses | $ 719,748 | $ 719,607 | $ 775,107 |
Selling, general and administrative expenses, % of Sales | 33.80% | 31.50% | 31.20% |
Restructuring and strategic charges | $ 0 | $ 0 | $ 31,027 |
Restructuring and strategic charges, % of Sales | 0.00% | 0.00% | 1.30% |
Income from Operations | $ 43,666 | $ 145,170 | $ 140,702 |
Income from Operations, % of Sales | 2.00% | 6.40% | 5.70% |
Interest expense, net | $ (353) | $ (1,570) | $ (1,973) |
Interest expense, net, % of Sales | 0.00% | (0.10%) | (0.10%) |
Income before Income Taxes | $ 43,313 | $ 143,600 | $ 138,729 |
Income before Income Taxes, % of Sales | 2.00% | 6.30% | 5.60% |
Income tax provision | $ 7,700 | $ 42,600 | $ 47,500 |
Income tax provision (benefit), % of Sales | 0.40% | 1.90% | 1.90% |
Net Income | $ 35,613 | $ 101,000 | $ 91,229 |
Net Income, % of Sales | 1.60% | 4.40% | 3.70% |
Per Share Data: | |||
Net income per common share-basic (in usd per share) | $ 0.28 | $ 0.79 | $ 0.69 |
Net income per common and common equivalent share–diluted (in usd per share) | $ 0.28 | $ 0.79 | $ 0.69 |
Weighted average common shares outstanding–basic (in shares) | 122,662 | 125,341 | 128,995 |
Weighted average common and common equivalent shares outstanding–diluted (in shares) | 122,729 | 125,403 | 129,237 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 35,613 | $ 101,000 | $ 91,229 |
Other comprehensive income: | |||
Unrealized gains (losses) on marketable securities, net of taxes | 189 | (135) | (39) |
Foreign currency translation (losses) gains | (467) | 119 | (29) |
Comprehensive Income | $ 35,335 | $ 100,984 | $ 91,161 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 124,128 | $ 160,071 |
Marketable securities, at fair value | 61,987 | 60,060 |
Inventories | 235,218 | 233,726 |
Prepaid expenses and other current assets | 63,845 | 60,668 |
Total Current Assets | 485,178 | 514,525 |
Property and Equipment, net | 370,932 | 421,038 |
Other Assets: | ||
Goodwill | 96,774 | 96,774 |
Other intangible assets, net | 38,930 | 38,930 |
Other assets, net | 15,220 | 16,338 |
Total Other Assets | 150,924 | 152,042 |
Total Assets | 1,007,034 | 1,087,605 |
Current Liabilities: | ||
Accounts payable | 143,404 | 118,253 |
Current debt | 0 | 15,000 |
Other current and deferred liabilities | 131,820 | 133,715 |
Total Current Liabilities | 275,224 | 266,968 |
Noncurrent Liabilities: | ||
Long-term debt | 57,500 | 53,601 |
Other noncurrent and deferred liabilities | 89,109 | 103,282 |
Deferred taxes | 5,237 | 7,372 |
Total Noncurrent Liabilities | 151,846 | 164,255 |
Commitments and Contingencies: (see Note 12) | ||
Shareholders’ Equity: | ||
Preferred stock, $.01 par value; 2,500 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $.01 par value; 400,000 shares authorized; 158,246 and 156,585 shares issued; and 116,949 and 127,471 shares outstanding, respectively | 1,169 | 1,275 |
Additional paid-in capital | 486,406 | 468,806 |
Treasury stock, at cost, 41,297 shares and 29,114 shares, respectively | (494,395) | (413,465) |
Retained earnings | 587,145 | 599,810 |
Accumulated other comprehensive loss | (361) | (44) |
Total Shareholders’ Equity | 579,964 | 656,382 |
Total Liabilities and Shareholders' Equity | $ 1,007,034 | $ 1,087,605 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 02, 2019 | Feb. 03, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 2,500,000 | 2,500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 158,246,000 | 156,585,000 |
Common stock, shares outstanding (in shares) | 116,949,000 | 127,471,000 |
Treasury stock (in shares) | 41,297,000 | 29,114,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance (in shares) at Jan. 30, 2016 | 135,531 | 18,307 | ||||
Beginning Balance at Jan. 30, 2016 | $ 639,788 | $ 1,355 | $ 435,881 | $ (289,813) | $ 492,325 | $ 40 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 91,229 | 91,229 | ||||
Unrealized gains (losses) on marketable securities, net of taxes | (39) | (39) | ||||
Foreign currency translation adjustment | (29) | (29) | ||||
Issuance of common stock (in shares) | 1,763 | |||||
Issuance of common stock | 4,359 | $ 18 | 4,341 | |||
Dividends paid on common stock, $0.34, $0.33, and $0.32, as of February 2, 2019, February 3, 2018, January 28, 2017, respectively | (42,303) | (42,303) | ||||
Repurchase of common stock (in shares) | (8,541) | 8,110 | ||||
Repurchase of common stock | (101,878) | $ (85) | (5,512) | $ (96,281) | 0 | |
Share-based compensation | 21,249 | 21,249 | ||||
Excess tax benefit from share-based compensation | (3,203) | (3,203) | ||||
Ending Balance (in shares) at Jan. 28, 2017 | 128,753 | 26,417 | ||||
Ending Balance at Jan. 28, 2017 | 609,173 | $ 1,288 | 452,756 | $ (386,094) | 541,251 | (28) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 101,000 | 101,000 | ||||
Unrealized gains (losses) on marketable securities, net of taxes | (135) | (135) | ||||
Foreign currency translation adjustment | 119 | 119 | ||||
Issuance of common stock (in shares) | 1,931 | |||||
Issuance of common stock | 2,127 | $ 19 | 2,108 | |||
Dividends paid on common stock, $0.34, $0.33, and $0.32, as of February 2, 2019, February 3, 2018, January 28, 2017, respectively | (42,441) | (42,441) | ||||
Repurchase of common stock (in shares) | (3,213) | 2,697 | ||||
Repurchase of common stock | (34,138) | $ (32) | (6,735) | $ (27,371) | 0 | |
Share-based compensation | 20,677 | 20,677 | ||||
Ending Balance (in shares) at Feb. 03, 2018 | 127,471 | 29,114 | ||||
Ending Balance at Feb. 03, 2018 | 656,382 | $ 1,275 | 468,806 | $ (413,465) | 599,810 | (44) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 35,613 | |||||
Unrealized gains (losses) on marketable securities, net of taxes | 189 | |||||
Ending Balance (in shares) at Feb. 02, 2019 | 116,949 | 41,297 | ||||
Ending Balance at Feb. 02, 2019 | 579,964 | $ 1,169 | 486,406 | $ (494,395) | 587,145 | (361) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of adoption of ASU 2018-02, ASU 2016-16 and ASU 2014-09 (see Note 1) | (5,054) | (5,015) | (39) | |||
Beginning Balance (in shares) at Feb. 04, 2018 | 127,471 | 29,114 | ||||
Beginning Balance at Feb. 04, 2018 | 651,328 | $ 1,275 | 468,806 | $ (413,465) | 594,795 | (83) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 35,613 | 35,613 | ||||
Unrealized gains (losses) on marketable securities, net of taxes | 189 | 189 | ||||
Foreign currency translation adjustment | (467) | (467) | ||||
Issuance of common stock (in shares) | 2,073 | |||||
Issuance of common stock | 1,548 | $ 21 | 1,527 | |||
Dividends paid on common stock, $0.34, $0.33, and $0.32, as of February 2, 2019, February 3, 2018, January 28, 2017, respectively | (43,263) | (43,263) | ||||
Repurchase of common stock (in shares) | (12,595) | 12,183 | ||||
Repurchase of common stock | (84,767) | $ (127) | (3,710) | $ (80,930) | ||
Share-based compensation | 19,783 | 19,783 | ||||
Ending Balance (in shares) at Feb. 02, 2019 | 116,949 | 41,297 | ||||
Ending Balance at Feb. 02, 2019 | $ 579,964 | $ 1,169 | $ 486,406 | $ (494,395) | $ 587,145 | $ (361) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid on common stock per share (in usd per share) | $ 0.34 | $ 0.33 | $ 0.32 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Cash Flows from Operating Activities: | |||
Net income | $ 35,613 | $ 101,000 | $ 91,229 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 91,333 | 96,310 | 109,251 |
Loss on disposal and impairment of property and equipment | 13,628 | 7,042 | 10,523 |
Deferred tax benefit | (2,100) | (2,070) | (8,427) |
Share-based compensation | 19,783 | 20,677 | 21,249 |
Deferred rent and lease credits | (19,527) | (19,692) | (18,811) |
Changes in assets and liabilities: | |||
Inventories | (2,316) | (1,363) | 1,472 |
Prepaid expenses and other assets | 10,446 | (4,584) | (7,565) |
Income tax receivable | (9,196) | (311) | 26,749 |
Accounts payable | 25,097 | 1,950 | (13,015) |
Accrued and other liabilities | (4,687) | (32,086) | 18,659 |
Net cash provided by operating activities | 158,074 | 166,873 | 231,314 |
Cash Flows from Investing Activities: | |||
Purchases of marketable securities | (38,693) | (39,794) | (50,717) |
Proceeds from sale of marketable securities | 37,007 | 30,045 | 50,508 |
Purchases of property and equipment, net | (54,187) | (48,530) | (47,836) |
Proceeds from sale of land | 0 | 0 | 16,217 |
Net cash used in investing activities | (55,873) | (58,279) | (31,828) |
Cash Flows from Financing Activities: | |||
Proceeds from borrowings | 61,250 | 0 | 0 |
Payments on borrowings | (72,500) | (16,250) | (7,500) |
Proceeds from issuance of common stock | 1,548 | 2,127 | 4,359 |
Dividends paid | (43,208) | (42,516) | (42,254) |
Repurchase of common stock | (81,052) | (27,398) | (96,363) |
Payments of tax withholdings related to share-based awards | (3,715) | (6,740) | (5,515) |
Net cash used in financing activities | (137,677) | (90,777) | (147,273) |
Effects of exchange rate changes on cash and cash equivalents | (467) | 119 | (29) |
Net (decrease) increase in cash and cash equivalents | (35,943) | 17,936 | 52,184 |
Cash and Cash Equivalents, Beginning of period | 160,071 | 142,135 | 89,951 |
Cash and Cash Equivalents, End of period | 124,128 | 160,071 | 142,135 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for interest | 3,272 | 2,546 | 2,316 |
Cash paid for income taxes, net | $ 22,697 | $ 49,758 | $ 25,863 |
Business Organization and Summa
Business Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 02, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Organization and Summary of Significant Accounting Policies | BUSINESS ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Description of Business The accompanying consolidated financial statements include the accounts of Chico’s FAS, Inc., a Florida corporation, and its wholly-owned subsidiaries (“the Company”, “we”, “us” and “our”). We operate as an omnichannel specialty retailer of women’s private branded, sophisticated, casual-to-dressy clothing, intimates and complementary accessories. We currently sell our products through retail stores, catalogs and via our websites at www.chicos.com , www.chicosofftherack.com, www.whbm.com and www.soma.com . As of February 2, 2019 , we had 1,418 stores located throughout the United States, Puerto Rico, the U.S. Virgin Islands and Canada, and sold merchandise through 83 international franchise locations in Mexico. Fiscal Year Our fiscal years end on the Saturday closest to January 31 and are designated by the calendar year in which the fiscal year commences. The periods presented in these consolidated financial statements are the fiscal years ended February 2, 2019 (“fiscal 2018 ” or “current period”), February 3, 2018 (“fiscal 2017 ” or “prior period”) and January 28, 2017 (“fiscal 2016 ”). Fiscal 2018 and 2016 each contained 52 weeks while fiscal 2017 contained 53 weeks. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Segment Information Our brands, Chico’s, White House Black Market ("WHBM") and Soma have been identified as separate operating segments and aggregated into one reportable segment due to the similarities of the economic and operating characteristics of the brands. Adoption of New Accounting Pronouncements On August 17, 2018, the SEC adopted a final rule that eliminates or amends certain disclosure requirements that were deemed redundant and outdated in light of changes in SEC requirements, U.S. GAAP or changes in technology or the business environment. The final rule became effective November 5, 2018. The eliminated or amended disclosures did not have a material impact on the Company’s consolidated financial statements. In the third quarter of fiscal 2018, we early adopted the guidance of Accounting Standards Update ("ASU") 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, which aligns the requirements for capitalizing implementation costs in a cloud computing arrangement (“CCA”) service contract with the requirements for capitalizing implementation costs incurred for an internal-use software license. Under this guidance, entities that enter into hosted CCA service contracts will apply the existing internal-use software guidance to determine which implementation costs are capitalized or expensed depending on the nature of the costs and project stage during which they are incurred. Capitalized implementation costs are presented in the same line item of the balance sheet that a prepayment of fees for the associated hosting arrangement is presented and will be amortized over the term of the associated hosted CCA service on a straight-line basis. Amortization of capitalized implementation costs will be presented in the same line on the income statement as fees for the associated hosted CCA service. The provisions of ASU 2018-15 were adopted on a prospective basis and prior period amounts have not been adjusted and continue to be reported in accordance with the previous guidance. In fiscal 2018, the Company recorded $1.1 million in capitalized CCA service contract implementation costs which is presented it in other assets, net, in the accompanying consolidated balance sheets. In the first quarter of fiscal 2018, we early adopted the guidance of 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 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 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 upon adoption which include: 1) revenue related to our online sales are 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 are 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 consolidated balance sheet (in thousands): 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 consolidated statement of income for fiscal 2018 and consolidated balance sheet as of February 2, 2019 were as follows: FISCAL YEAR ENDED February 2, 2019 As Reported Effects of Standard Balances Without Adoption of ASU 2014-09 Sales $ 2,131,140 $ (2,670 ) $ 2,128,470 Cost of Goods Sold 1,367,726 (1,887 ) 1,365,839 Selling, general and administrative expenses 719,748 (621 ) 719,127 February 2, 2019 As Reported Effects of Standard Balances Without Adoption of ASU 2014-09 ASSETS Inventory $ 235,218 $ 1,409 $ 236,627 Prepaid expenses and other current assets 63,845 (4,169 ) 59,676 LIABILITIES AND SHAREHOLDERS’ EQUITY Other current and deferred liabilities $ 131,820 $ (2,598 ) $ 129,222 Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and in banks, short-term highly liquid investments with original maturities of three months or less and payments due from banks for third-party credit card and debit transactions for approximately 3 to 5 days of sales. Marketable Securities Marketable securities are classified as available-for-sale and 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 and fair value are determined on a specific identification basis. We consider all securities available-for-sale, including those with maturity dates beyond 12 months, and therefore classify these securities within current assets on the consolidated balance sheets as they are available to support current operational liquidity needs. Fair Value of Financial Instruments Our consolidated financial instruments consist of cash, money market accounts, marketable securities, assets held in our non-qualified deferred compensation plan, accounts receivable, accounts 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. Inventories We use the weighted average cost method to determine the cost of merchandise inventories. We identify potentially excess and slow-moving inventories by evaluating inventory aging, turn rates and inventory levels in conjunction with our overall sales trend. Further, inventory realization exposure is identified through analysis of gross margins and markdowns in combination with changes in current business trends. We record excess and slow-moving inventories at net realizable value and may liquidate certain slow-moving inventory through third parties. We estimate our expected shrinkage of inventories between physical inventory counts by using average store shrinkage experience rates, which are updated on a regular basis. Substantially all of our inventories consist of finished goods. Costs associated with sourcing are generally capitalized while merchandising, distribution and product development costs are generally expensed as incurred and are included in the accompanying consolidated statements of income as a component of cost of goods sold ("COGS"). Approximately 23% of total purchases in fiscal 2018 and 2017 were made from one supplier. In fiscal 2018 and 2017 , approximately 48% and 52% of our merchandise cost originated in China, respectively. Property and Equipment Property and equipment is stated at cost, net of accumulated depreciation and amortization. Depreciation of property and equipment is provided on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of their estimated useful lives (generally 10 years or less) or the related lease term, plus one anticipated renewal when there is an economic cost associated with non-renewal. Our property and equipment is generally depreciated using the following estimated useful lives: Estimated Useful Lives Land improvements 15 - 35 years Building and building improvements 20 - 35 years Equipment, furniture and fixtures 2 - 20 years Leasehold improvements 10 years or term of lease, if shorter Maintenance and repairs of property and equipment are expensed as incurred, and major improvements are capitalized. Upon retirement, sale or other disposition of property and equipment, the cost and accumulated depreciation or amortization are eliminated from the accounts, and any gain or loss is charged to income. Operating Leases We lease retail stores and a limited amount of office space under operating leases. The majority of our lease agreements provide for tenant improvement allowances, rent escalation clauses and/or contingent rent provisions. Tenant improvement allowances are recorded as a deferred lease credit within deferred liabilities and amortized as a reduction of rent expense over the term of the lease. Rent escalation clauses, “rent-free” periods and other rental expenses are amortized on a straight-line basis over the term of the leases, including the construction period. Certain leases provide for contingent rents, in addition to a basic fixed rent, which are determined as a percentage of gross sales in excess of specified levels. We record a contingent rent liability in accrued liabilities on the consolidated balance sheets and the corresponding rent expense when specified levels have been achieved or when it is determined that achieving the specified levels during the lease year is probable. Goodwill and Other Intangible Assets Goodwill and other indefinite-lived intangible assets are assessed for impairment at least annually. We perform our annual impairment test during the fourth quarter, or more frequently should events or circumstances change that would indicate that impairment may have occurred. Goodwill represents the excess of the purchase price over the fair value of identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. Impairment testing for goodwill is done at a reporting unit level. Reporting units are defined as an operating segment or one level below an operating segment, called a component. Using these criteria, we identified our reporting units and concluded that the goodwill related to the territorial franchise rights for the state of Minnesota should be allocated to the Chico’s reporting unit and the goodwill associated with the WHBM acquisition should be assigned to the WHBM reporting unit. We evaluate the appropriateness of performing a qualitative assessment, on a reporting unit level, based on current circumstances. If we do not perform a qualitative assessment, or if we determine that it is not more likely than not that the carrying value of the reporting unit exceeds its fair value, we calculate the estimated fair value of the reporting unit. Fair value is determined based on both an income approach and market approach. The income approach is based on estimated future cash flows, discounted at a rate that approximates the cost of capital of a market participant, while the market approach is based on sales and EBITDA multiples of similar companies and/or transactions, or other available indications of value. For fiscal 2017 and fiscal 2016 , we performed a qualitative assessment of the goodwill associated with the Chico's and WHBM reporting units and concluded it was more likely than not that the fair value exceeded the carrying amount as of the annual assessment dates. Had the Company elected to skip the qualitative assessment, or if the results of the qualitative assessment indicated that it was more likely than not that the fair value of a reporting unit was less than its carrying amount, a two-step impairment test would have been performed. The first step of the impairment test compares the fair value of our reporting units with their carrying amounts, including goodwill. If the carrying amount exceeds fair value, then the second step of the impairment test is performed to measure the amount of any impairment loss. In fiscal 2018 , the Company adopted ASU 2017-04, Simplifying 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. For 2018 , we elected to skip the qualitative assessment and perform impairment testing for each of our reporting units. The estimated fair value of each of our reporting units exceeded the respective carrying value and, as such, we concluded that the goodwill was not impaired. We test indefinite-lived intangible assets for impairment by first assessing qualitative factors to determine whether it is more likely than not that the fair value of the intangible is less than its carrying amount. If the results of the qualitative assessment indicate that it is more likely than not that the fair value of the intangible is less than its carrying amount, we calculate the value of the indefinite-lived intangible assets using a discounted cash flow method, based on the relief from royalty concept, and compare the fair value to the carrying value to determine if the asset is impaired. We may elect to skip the qualitative assessment when appropriate based on current circumstances. For fiscal 2017 and 2016 , we performed a qualitative assessment of the WHBM trade name and concluded it was more likely than not that the fair value exceeded the carrying amount as of the annual assessment dates. For fiscal 2018 , we elected to skip the qualitative assessment and perform impairment testing on the WHBM trade name. The estimated fair value of the WHBM trade name exceeded the respective carrying value and, as such, we concluded the WHBM trade name was not impaired. Accounting for the Impairment of Long-lived Assets Long-lived assets, including definite-lived intangibles, are reviewed periodically for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable. If future undiscounted cash flows expected to be generated by the asset are less than its carrying amount, an asset is determined to be impaired. The fair value of an asset is estimated using estimated future cash flows of the asset discounted by a rate commensurate with the risk involved with such asset while incorporating marketplace assumptions. The impairment loss recorded is the amount by which the carrying value of the asset exceeds its fair value. In fiscal 2018 , 2017 and 2016 , we completed an evaluation of long-lived assets at certain underperforming stores for indicators of impairment and, as a result, recorded impairment charges of approximately $13.3 million , $6.0 million and $2.5 million , respectively, which are primarily included in costs of goods sold in the accompanying consolidated statements of income. Impairment charges in fiscal 2018 included $9.4 million in connection with our retail fleet optimization plan as further discussed in Note 3. Impairment charges in fiscal 2017 included $2.9 million resulting from hurricanes Harvey, Irma and Maria. Revenue Recognition 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. For sales from our websites and catalogs, in fiscal 2018 revenue is recognized at the point of shipment whereas in fiscal 2017 and 2016 , revenue was recognized at the time we estimated the customer received the product, which was typically within a few days 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 COGS in the accompanying consolidated statements of income. 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. 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. 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. Advertising Costs For fiscal 2018 , 2017 and 2016 , advertising costs associated with the production of non-media advertising are charged to expense as incurred. For fiscal 2018 , media production costs (such as television, magazine and catalogs) are expensed when the advertising first takes place whereas in 2017 and 2016 , these expenses were amortized over their expected period of future benefit, which was typically less than six weeks. For fiscal 2018 , 2017 and 2016 , advertising expense was approximately $102.5 million , $94.5 million and $115.4 million , respectively, and is included within selling, general and administrative expenses ("SG&A") in the accompanying consolidated statements of income. Treasury Stock Treasury stock is accounted for at cost. These shares are not retired and are excluded from the calculation of earnings per share. Share-Based Compensation Share-based compensation for all awards is based on the grant date fair value of the award, net of estimated forfeitures, and is recognized over the requisite service period of the awards. The fair value of restricted stock awards and performance-based awards is determined by using the closing price of the Company’s common stock on the date of the grant. Compensation expense for performance-based awards is recorded based on the amount of the award ultimately expected to vest, depending on the level and likelihood of the performance condition being met. Shipping and Handling Costs Shipping and handling costs to transport goods to customers amounted to $58.5 million , $40.5 million and $35.9 million in fiscal 2018 , 2017 and 2016 , respectively, and are included within COGS in the accompanying consolidated statements of income. Store Occupancy and Pre-Opening Costs Store occupancy and pre-opening costs (including store-related costs and training expenses) incurred prior to the opening of new stores are expensed as incurred and are included within cost of sales in the accompanying consolidated statements of income. Income Taxes Income taxes are accounted for in accordance with authoritative guidance, which requires the use of the asset and liability method. Deferred tax assets and liabilities are recognized based on the difference between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Additionally, we follow a comprehensive model to recognize, measure, present and disclose in our consolidated financial statements the estimated aggregate tax liability of uncertain tax positions that we have taken or expect to take on a tax return. This model states that a tax benefit from an uncertain tax position may be recognized if it is “more likely than not” that the position is sustainable, based upon its technical merits. The tax benefit of a qualifying position is the largest amount of tax benefit that has greater than a 50% likelihood of being realized upon the ultimate settlement with a taxing authority having full knowledge of all relevant information. Foreign Currency The functional currency of our foreign operations is generally the applicable local currency. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect as of the balance sheet date, while revenues and expenses are translated at the current exchange rate in effect as of the date of the transaction. The resulting translation adjustments are recorded as a component of comprehensive income in the consolidated statements of comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are included in the consolidated statements of income. Self-Insurance We are self-insured for certain losses relating to workers’ compensation, medical and general liability claims. Self-insurance claims filed and claims incurred but not reported are accrued based upon management’s estimates of the aggregate liability for uninsured claims incurred based on historical experience. While we do not expect the amount we will ultimately pay to differ significantly from our estimates, self-insurance accruals could be affected if future claims experience differs significantly from the historical trends and assumptions. Supplier Allowances From time to time, we receive allowances and/or credits from certain of our suppliers. The aggregate amount of such allowances and credits, which is included in COGS, is immaterial to our consolidated results of operations. 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 us, participating securities are composed entirely of unvested restricted stock awards and performance-based restricted stock units ("PSU's") that have met their relevant performance criteria. Under the two-class method, net income is reduced by the amount of dividends declared in the period for common stock and participating securities. The remaining undistributed earnings are then allocated to common stock and participating securities as if all of the net income for the period had been distributed. 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 the participating securities. Diluted EPS reflects the dilutive effect of potential common shares from non-participating securities such as stock options, PSU's and restricted stock units. Recently Issued Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (the “FASB”) issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The amendments related to the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively. All other amendments should be applied retrospectively. An entity is permitted to early adopt any removed or modified disclosures upon issuance of ASU 2018-13 and delay adoption of the additional disclosures until their effective date. We do not anticipate adoption to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases, which replaces the existing guidance in Accounting Standard Codification 840 (“ASC 840”), Leases. The FASB has also issued subsequent ASUs related to ASU 2016-02, which detail amendments to the ASU, implementation considerations, narrow-scope improvements and practical expedients. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The guidance is required to be adopted using the modified retrospective approach, which provides an entity the option to apply the guidance at the beginning of the earliest comparative period presented, or at the beginning of the period in which it is adopted. The Company has elected to apply the guidance at the beginning of the period in which it is adopted. The standard requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use ("ROU") asset and corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset and for |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Feb. 02, 2019 | |
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. Fiscal 2018 % Fiscal 2017 % Fiscal 2016 % (in thousands) Chico’s $ 1,098,707 51.6 % $ 1,187,603 52.0 % $ 1,285,830 51.9 % WHBM 694,804 32.6 750,912 32.9 846,035 34.2 Soma 337,629 15.8 343,864 15.1 344,545 13.9 Total net sales $ 2,131,140 100.0 % $ 2,282,379 100.0 % $ 2,476,410 100.0 % Accounting Policies Beginning in fiscal 2018 , the Company recognizes revenue pursuant ASC 606 as established by ASU 2014-09, Revenue from Contracts with Customers: Topic 606 . See Note 1 for the Company's policy over revenue recognition. Contract Liability Contract liabilities on the condensed consolidated balance sheets were comprised of obligations associated with our gift card and customer loyalty programs. As of February 2, 2019 and February 3, 2018 , contract liabilities primarily consisted of gift cards of $42.6 million and $43.6 million , respectively. For fiscal 2018 , the Company recognized $28.7 million 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 February 2, 2019 or February 3, 2018 . Performance Obligation For fiscal 2018 , revenue recognized from performance obligations related to prior periods was not material. Revenue to be recognized in future periods related to performance obligations is not expected to be material. |
Retail Fleet Optimization Plan
Retail Fleet Optimization Plan | 12 Months Ended |
Feb. 02, 2019 | |
Property, Plant and Equipment [Abstract] | |
Retail Fleet Optimization Plan | RETAIL FLEET OPTIMIZATION PLAN: In the fourth quarter of fiscal 2018, the Company announced a retail fleet optimization plan to rebalance the mix between our physical store presence and our digital network with the closure of at least 250 stores in the United States over the next three years. Under this plan, we expect to close approximately 100 Chico's, 90 WHBM and 60 Soma locations over the next three years, with the majority of the closings occurring in years two and three. This initiative is part of the Company's efforts to better capitalize on its omnichannel platform, reduce costs, improve profitability and return on invested capital. In fiscal 2018 , the Company recorded pre-tax impairment and accelerated depreciation charges within COGS of $9.4 million and $1.3 million , respectively, associated with this retail fleet optimization plan. A summary of the retail fleet optimization charges is presented in the table below: Fiscal 2018 (in thousands) Impairment (1) $ 9,434 Accelerated Depreciation (1) (2) 1,268 Fleet Optimization charges, pre-tax $ 10,702 (1) Adjustments for impairment and accelerated depreciation charges reflect the impact of incremental store closures included in the Company’s retail fleet optimization plan. (2) Accelerated depreciation represents incremental depreciation due to the change in the useful life of store assets as a result of the retail fleet optimization plan. |
Restructuring and Strategic Cha
Restructuring and Strategic Charges | 12 Months Ended |
Feb. 02, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Strategic Charges | RESTRUCTURING AND STRATEGIC CHARGES: During the first quarter of fiscal 2016 , we expanded our restructuring program that was initiated in fiscal 2014 to include components of our strategic initiatives that further aligned the organizational structure with long-term growth initiatives and to reduce COGS and SG&A. These strategic initiatives included realigning marketing and digital commerce, improving supply chain efficiency, reducing non-merchandise expenses, optimizing marketing spend and transition of executive leadership. We also adjusted the estimated store closures to 150 through fiscal 2017 in connection with this restructuring and strategic program. In fiscal 2016 , the Company recorded pre-tax restructuring and strategic charges of $31.0 million , primarily related to outside services, severance and proxy solicitation costs. We substantially completed this restructuring and strategic program in fiscal 2016 and closed the stores identified for closure in connection with this program. We did not incur any material additional expenses related to this restructuring and strategic program in fiscal 2017 or fiscal 2018 . A summary of the restructuring and strategic charges is presented in the table below: Fiscal 2016 (in thousands) Impairment charges $ 1,453 Continuing employee-related costs 1,796 Severance charges 9,485 Proxy solicitation costs 5,697 Lease terminations 427 Outside services 12,013 Other charges 156 Restructuring and strategic charges, pre-tax $ 31,027 |
Marketable Securities
Marketable Securities | 12 Months Ended |
Feb. 02, 2019 | |
Marketable Securities [Abstract] | |
Marketable Securities | MARKETABLE SECURITIES: Marketable securities are classified as available-for-sale and generally consist of corporate bonds, commercial paper, U.S. government agencies and municipal securities. At February 2, 2019 , we had $42.6 million of securities with maturity dates within one year or less and $19.4 million with maturity dates over one year and less than two years. As of February 2, 2019 , marketable securities consisted of corporate bonds and commercial paper. The following tables summarize our investments in marketable securities at February 2, 2019 and February 3, 2018 : February 2, 2019 (in thousands) Amortized Gross Gross Estimated Total marketable securities $ 62,048 $ 38 $ (99 ) $ 61,987 February 3, 2018 (in thousands) Amortized Gross Gross Estimated Total marketable securities $ 60,361 $ — $ (301 ) $ 60,060 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Feb. 02, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS: Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in 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. In fiscal 2018 , the $57.5 million outstanding debt under our revolving loan and letter of credit facility approximates fair value as this instrument has a variable interest rate which approximates current market rates (Level 2 criteria). To assess the fair value of long-term debt in fiscal 2017 , we utilized 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 fiscal 2018 , we did not make any transfers between Level 1 and Level 2 financial assets. Furthermore, during fiscal 2018 and fiscal 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 February 2, 2019 Quoted Prices Significant Other Significant (in thousands) Financial Assets: Current Assets Cash equivalents: Money market accounts $ 711 $ 711 $ — $ — Marketable securities: Corporate bonds 60,281 — 60,281 — Commercial paper 1,706 — 1,706 — Noncurrent Assets Deferred compensation plan 6,644 6,644 — — Total $ 69,342 $ 7,355 $ 61,987 $ — Financial Liabilities: Long-term debt 1 $ 57,500 $ — $ 57,500 $ — Fair Value Measurements at Reporting Date Using Balance as of February 3, 2018 Quoted Prices Significant Other Significant (in thousands) 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 $ — 1 As of February 2, 2019, long-term debt consists only of borrowings under our revolving credit facility as further discussed in Note 10. The carrying value of long-term debt as of February 3, 2018 includes the current and long-term portions and the remaining unamortized debt issuance costs. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Feb. 02, 2019 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | PREPAID EXPENSES AND OTHER CURRENT ASSETS: Prepaid expenses and other current assets consisted of the following: February 2, 2019 February 3, 2018 (in thousands) Prepaid expenses $ 37,559 $ 52,189 Accounts receivable 21,394 8,479 Other current assets 4,892 — Prepaid expenses and other current assets $ 63,845 $ 60,668 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Feb. 02, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | PROPERTY AND EQUIPMENT, NET: Property and equipment, net, consisted of the following: February 2, 2019 February 3, 2018 (in thousands) Land and land improvements $ 30,620 $ 30,572 Building and building improvements 125,868 125,504 Equipment, furniture and fixtures 650,391 636,542 Leasehold improvements 496,972 529,835 Total property and equipment 1,303,851 1,322,453 Less: accumulated depreciation and amortization (932,919 ) (901,415 ) Property and equipment, net $ 370,932 $ 421,038 Total depreciation expense for fiscal 2018 , 2017 and 2016 was $91.2 million , $96.2 million and $109.1 million , respectively. Depreciation expense in fiscal 2018 included $1.3 million in connection with our retail fleet optimization plan as further discussed in Note 3. |
Other Current and Deferred Liab
Other Current and Deferred Liabilities | 12 Months Ended |
Feb. 02, 2019 | |
Other Liabilities, Current [Abstract] | |
Other Current and Deferred Liabilities | OTHER CURRENT AND DEFERRED LIABILITIES: Other current and deferred liabilities consisted of the following: February 2, 2019 February 3, 2018 (in thousands) Allowance for customer returns, gift cards and store credits outstanding $ 57,827 $ 55,948 Accrued payroll, benefits, bonuses and severance costs and termination benefits 24,391 29,685 Current portion of deferred rent and lease credits 19,397 19,158 Other 30,205 28,924 Other current and deferred liabilities $ 131,820 $ 133,715 OTHER NONCURRENT AND DEFERRED LIABILITIES: Other Noncurrent and Deferred liabilities consisted of the following: February 2, 2019 February 3, 2018 (in thousands) Deferred rent $ 46,228 $ 50,529 Deferred lease credits, net 50,336 63,932 Other noncurrent and deferred liabilities 10,570 7,979 Noncurrent and deferred liabilities 107,134 122,440 Less: current portion of deferred rent and lease credits (18,025 ) (19,158 ) Other noncurrent and deferred liabilities $ 89,109 $ 103,282 Deferred rent represents the difference between operating lease obligations currently due and operating lease expense, which is recorded on a straight-line basis over the appropriate respective terms of the leases. Deferred lease credits represent construction allowances received from landlords and are amortized as a reduction of rent expense over the appropriate respective terms of the related leases. |
Debt
Debt | 12 Months Ended |
Feb. 02, 2019 | |
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 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 million , subject to customary conditions, including obtaining the agreements from the lenders to provide such commitment increase. The Agreement contains customary representations, warranties, and affirmative covenants, as well as customary negative covenants, that, among other things restrict, subject to certain exceptions, the ability of the Company and certain of its domestic subsidiaries to: (i) incur liens, (ii) make investments, (iii) issue or incur additional indebtedness, (iv) undergo significant corporate changes, including mergers and acquisitions, (v) make dispositions, (vi) make restricted payments, (vii) prepay other indebtedness and (viii) enter into certain other restrictive agreements. The Company may pay cash dividends and repurchase shares under its share buyback program, subject to certain thresholds of available borrowings based upon the lesser of the aggregate amount of commitments under the Agreement and the borrowing base (the “Loan Cap”), determined after giving effect to any such transaction or payment, on a pro forma basis. The interest rate applicable to 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 a margin of 0.25% , or a LIBO rate, plus a margin of 1.25% , in each case, depending on availability under the Agreement. In addition, the Company will pay a commitment fee of 0.20% per annum on the unused portion of the commitments under the Agreement. As of February 2, 2019 , our outstanding debt consisted of $57.5 million in borrowings under the Agreement and is presented as long-term debt in the accompanying consolidated balance sheet. As of February 2, 2019 , we have $142.5 million available for borrowings under the revolving loan and letter of credit facility. We also have unamortized debt discount of $0.5 million outstanding related to the Agreement, which is presented in other current assets in the accompanying consolidated balance sheet. The previous 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 details on our debt outstanding as of February 2, 2019 and February 3, 2018 : February 2, 2019 February 3, 2018 (in thousands) Credit Agreement, net $ 57,500 $ 68,601 Less: current debt — (15,000 ) Long-term debt $ 57,500 $ 53,601 There are no debt payments due through fiscal year 2022 and $57.5 million is due in fiscal 2023. |
Other Noncurrent and Deferred L
Other Noncurrent and Deferred Liabilities | 12 Months Ended |
Feb. 02, 2019 | |
Deferred Credits and Other Liabilities [Abstract] | |
Other Noncurrent and Deferred Liabilities | OTHER CURRENT AND DEFERRED LIABILITIES: Other current and deferred liabilities consisted of the following: February 2, 2019 February 3, 2018 (in thousands) Allowance for customer returns, gift cards and store credits outstanding $ 57,827 $ 55,948 Accrued payroll, benefits, bonuses and severance costs and termination benefits 24,391 29,685 Current portion of deferred rent and lease credits 19,397 19,158 Other 30,205 28,924 Other current and deferred liabilities $ 131,820 $ 133,715 OTHER NONCURRENT AND DEFERRED LIABILITIES: Other Noncurrent and Deferred liabilities consisted of the following: February 2, 2019 February 3, 2018 (in thousands) Deferred rent $ 46,228 $ 50,529 Deferred lease credits, net 50,336 63,932 Other noncurrent and deferred liabilities 10,570 7,979 Noncurrent and deferred liabilities 107,134 122,440 Less: current portion of deferred rent and lease credits (18,025 ) (19,158 ) Other noncurrent and deferred liabilities $ 89,109 $ 103,282 Deferred rent represents the difference between operating lease obligations currently due and operating lease expense, which is recorded on a straight-line basis over the appropriate respective terms of the leases. Deferred lease credits represent construction allowances received from landlords and are amortized as a reduction of rent expense over the appropriate respective terms of the related leases. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 02, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES: Leases We lease retail stores, a limited amount of office space and certain office equipment under operating leases expiring in various years through the fiscal year ending 2028. Certain operating leases provide for renewal options that generally approximate five years at a pre-determined rental value. In the normal course of business, operating leases are typically renewed or replaced by other leases. Minimum future rental payments under non-cancelable operating leases (including leases with certain minimum sales cancellation clauses described below and exclusive of common area maintenance charges and/or contingent rental payments based on sales) as of February 2, 2019 , are approximately as follows: FISCAL YEAR ENDING: (in thousands) February 1, 2020 $ 186,280 January 30, 2021 169,477 January 29, 2022 146,390 January 28, 2023 114,293 February 3, 2024 75,410 Thereafter 110,812 Total minimum lease payments $ 802,662 Certain leases provide that we may cancel the lease if our retail sales at that location fall below an established level. A majority of our store operating leases contain cancellation clauses that allow the leases to be terminated at our discretion, if certain minimum sales levels are not met within the first few years of the lease term. We have not historically met or exercised a significant number of these cancellation clauses and, therefore, have included commitments for the full lease terms of such leases in the above table. For fiscal 2018 , 2017 and 2016 , total rent expense under operating leases was approximately $261.3 million , $263.7 million and $268.5 million , respectively, including common area maintenance charges of approximately $48.0 million , $47.9 million and $47.6 million , respectively, other rental charges of approximately $40.9 million , $40.3 million and $41.2 million , respectively, and contingent rental expense, based on sales, of approximately $3.6 million , $4.3 million and $5.2 million , respectively. Open Purchase Orders At February 2, 2019 and February 3, 2018 , we had approximately $321.8 million and $316.5 million , respectively, of open purchase orders for inventory, in the normal course of business. Legal Proceedings 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 (“District Court”). 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. WHBM 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 (“Eleventh Circuit”), 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. In the meantime, the District Court stayed all further proceedings in the case pending the outcome of the appeal in the Eleventh Circuit. On July 12, 2018, the plaintiff and WHBM notified the Eleventh Circuit that the plaintiff and WHBM had reached a class settlement on all claims and therefore voluntarily dismissed WHBM’s appeal to the Eleventh Circuit. On August 2, 2018, the District Court reopened the case for purposes of reviewing/approving the proposed settlement. On October 22, 2018, the plaintiff filed the settlement papers with the District Court, along with a motion to stay the District Court’s consideration of the settlement pending the Eleventh Circuit’s final disposition of Muransky v. Godiva Chocolatier, Inc., in which the Eleventh Circuit held, in an opinion issued October 3, 2018, that the display of the first five and last four digits of a credit or debit card number on a customer’s receipt given at the point of sale establishes a “concrete injury” sufficient to confer Article III standing, enabling the customer to maintain a lawsuit. The motion to stay was granted on November 15, 2018. A petition for rehearing was filed in the Muransky case on October 24, 2018 and is currently pending before the Eleventh Circuit. The Muransky opinion, if not altered on the petition for rehearing, would bind the District Court in the Altman case and likely establish that the plaintiff has standing to maintain her lawsuit against WHBM. In such event, the stay will be lifted and the proposed settlement will be reviewed by the District Court. If the Eleventh Circuit does not find standing in the Muransky case, the parties have agreed to submit the proposed settlement to the Superior Court for Cobb County, Georgia for approval. 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 proposed settlement will be approved. If the proposed settlement is rejected and the case were to proceed as a class action and WHBM 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. In May 2016, Chico’s Retail Services, Inc. (“CRS”) was named as a defendant in Corporate Cleaners, Inc. v. Chico’s Retail Services, Inc., an action filed in the Seventeenth Judicial Circuit of Florida. The plaintiff alleges that CRS breached a contract (and related amendments thereto) with the plaintiff by, among other reasons, failing to pay outstanding invoices and failing to allow the plaintiff the exclusive right to provide certain cleaning services. The plaintiff seeks an award of lost profits, lost revenue, as well as attorneys’ fees and costs. CRS denies the material allegations brought by the plaintiff and filed a counterclaim seeking recovery of amounts associated with alleged misrepresentations by the plaintiff as to the quantity of inventory units cleaned by the plaintiff. Discovery, including document productions, depositions, as well as expert discovery, remain ongoing. On September 4, 2018, CRS and the plaintiff participated in mediation. Although unsuccessful at that time, the mediation remains adjourned with the expectation that the parties will continue mediation after expert disclosures have been exchanged. Discovery and trial deadlines have been extended. As such, discovery, including expert discovery, remains ongoing, with CRS’ expert scheduled to be deposed in April 2019. A trial date is now set for September 17, 2019. No assurance can be given that CRS will be successful in its defense of this case or in its counterclaim. However, management does not believe that any resolution of the case would 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 other matters as of February 2, 2019 are not estimable. However, while such matters could affect our consolidated operating results when resolved in future periods, management believes that upon final disposition, any monetary liability or financial impact to us would not be material to our annual consolidated financial statements. |
Share-Based Compensation Plans
Share-Based Compensation Plans and Capital Stock Transactions | 12 Months Ended |
Feb. 02, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Plans and Capital Stock Transactions | SHARE-BASED COMPENSATION PLANS AND CAPITAL STOCK TRANSACTIONS: General In April 2017, the Board approved the Amended and Restated 2012 Omnibus Stock and Incentive Plan (the "Amended Omnibus Plan"), which replaced the Chico's FAS, Inc. 2012 Omnibus Stock and Incentive Plan, effective upon shareholder approval on June 22, 2017. The aggregate number of shares of our common stock that may be issued under the Amended Omnibus Plan (since inception) is 15.5 million shares plus any shares represented by awards granted under prior plans that are forfeited, expired or canceled without delivery of shares. Awards under the Amended Omnibus Plan may be in the form of restricted stock, restricted stock units, performance-based restricted stock, performance-based stock units, stock options and stock appreciation rights, in accordance with the terms and conditions of the Amended Omnibus Plan. The terms of each award will be determined by the Human Resources, Compensation and Benefits Committee of the Board of Directors or by the Board of Directors. We have historically issued restricted stock, including non-vested restricted stock, performance-based stock units and stock options. Shares of non-vested restricted stock have the same voting rights as common stock, are entitled to receive dividends and other distributions thereon, and are considered to be currently issued and outstanding. The Company's performance-based stock units are subject to vesting conditions, including meeting specified annual Company performance objectives. Each performance based award recipient could vest 0% to 175% of the target shares granted contingent on the achievement of the Company's financial performance metrics. Performance-based stock units are entitled to dividend equivalents only to the extent certain Company-specific performance goals are met and are entitled to voting rights only upon the issuance of shares after meeting these Company-specific performance goals. Generally, share-based awards vest evenly over three years or cliff-vest after a three -year period; stock options generally have a 10 -year term. As of February 2, 2019 , approximately 0.2 million nonqualified stock options are outstanding under a predecessor plan and approximately 7.2 million shares remain available for future grants of share-based awards. Share-based compensation expense for all awards is based on the grant date fair value of the award, net of estimated forfeitures, and is recognized over the requisite service period of the awards. Compensation expense for restricted stock awards and stock options with a service condition is recognized on a straight-line basis over the requisite service period. Compensation expense for performance-based awards with a service condition is recognized ratably for each vesting tranche based on our estimate of the level and likelihood of meeting certain Company-specific performance goals. We estimate the expected forfeiture rate for all share-based awards, and only recognize expense for those shares expected to vest. In determining the portion of the share-based payment award that is ultimately expected to be earned, we derive forfeiture rates based on historical data. In accordance with the authoritative guidance, we revise our forfeiture rates, when necessary, in subsequent periods if actual forfeitures differ from those originally estimated. Total compensation expense related to share-based awards in fiscal 2018 , 2017 and 2016 was $19.8 million , $20.7 million and $21.2 million , respectively. The total tax benefit associated with share-based compensation for fiscal 2018 , 2017 and 2016 was $5.0 million , $7.6 million and $8.1 million , respectively. Restricted Stock Awards Restricted stock activity for fiscal 2018 was as follows: Number of Weighted Unvested, beginning of period 2,328,259 $ 13.08 Granted 1,944,280 9.68 Vested (1,187,553 ) 12.90 Forfeited (369,520 ) 11.64 Unvested, end of period 2,715,466 10.92 Total fair value of shares of restricted stock that vested during fiscal 2018 , 2017 and 2016 was $10.6 million , $15.6 million and $14.7 million , respectively. The weighted average grant date fair value of restricted stock granted during fiscal 2018 , 2017 and 2016 was $9.68 , $13.23 and $12.38 , respectively. As of February 2, 2019 , there was $15.6 million of unrecognized share-based compensation expense related to non-vested restricted stock awards. That cost is expected to be recognized over a weighted average remaining period of approximately 1.7 years. Performance-based Stock Units Performance-based stock unit activity for fiscal 2018 was as follows: Number of Weighted Unvested, beginning of period 690,950 $ 13.65 Granted 725,300 9.87 Vested (190,777 ) 13.08 Forfeited (158,135 ) 12.65 Unvested, end of period 1,067,338 11.40 Total fair value of performance-based stock units that vested during fiscal 2018 , 2017 and 2016 was $1.9 million , $4.2 million and $2.9 million , respectively. There was $3.8 million of unrecognized share-based compensation expense related to performance-based stock units expected to vest. That cost is expected to be recognized over a weighted average period of approximately 1.8 years. Stock Option Awards We used the Black-Scholes option-pricing model to value our stock options. No stock options have been issued since fiscal 2011 and all have been fully vested since fiscal 2014 . Using this option-pricing model, the fair value of each stock option award was estimated on the date of grant. The fair value of the stock option awards, which are subject to pro-rata vesting generally over three years, was expensed on a straight-line basis over the vesting period of the stock options. Stock option activity for fiscal 2018 was as follows: Number of Weighted Weighted Aggregate (in thousands) Outstanding, beginning of period 368,745 $ 12.36 Granted — — Exercised (42,200 ) 3.60 Forfeited or expired (112,268 ) 13.39 Outstanding, end of period 214,277 13.54 1.8 $ — Vested at February 2, 2019 214,277 13.54 1.8 — Exercisable at February 2, 2019 214,277 13.54 1.8 — Total intrinsic value of options exercised during fiscal 2018 , 2017 and 2016 was $0.2 million , $0.01 million and $0.7 million , respectively. Employee Stock Purchase Plan We sponsor an employee stock purchase plan (“ESPP”) under which substantially all full-time employees are given the right to purchase shares of our common stock during each of the two specified offering periods each fiscal year at a price equal to 85 percent of the value of the stock immediately prior to the beginning of each offering period. During fiscal 2018 , 2017 and 2016 , approximately 175,000 , 232,000 and 191,000 shares, respectively, were purchased under the ESPP. Cash received from purchases under the ESPP for fiscal 2018 was $1.4 million . Share Repurchase Program In fiscal 2018 and fiscal 2017 , we repurchased 12.2 million and 2.7 million shares at a total cost of $81.1 million and $27.4 million , respectively, under the Company's $300 million share repurchase program announced in November 2015. As of February 2, 2019 , $55.2 million remains under the share repurchase program. However, we have no continuing obligation to repurchase shares under this authorization, and the timing, actual number and value of any additional shares to be purchased will depend on the performance of our stock price, market conditions and other considerations. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Feb. 02, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plans | RETIREMENT PLANS: We have a 401(k) defined contribution employee retirement benefit plan (the “Plan”) covering all employees upon the completion of one year of service, working 1000 hours or more (prior to January 1, 2019), or six months of service and 500 hours worked (as of January 1, 2019). Participants must meet a minimum age requirement of 21. Employees’ rights to Company contributions vest fully upon completing five years of service, with incremental vesting starting in service year two. Under the Plan, employees may contribute up to 75 percent of their annual compensation, subject to certain statutory limitations. We have elected to match employee contributions at 50 percent on the first 6 percent of the employees’ contributions and can elect to make additional contributions over and above the mandatory match. For fiscal 2018 , 2017 and 2016 , our costs under the Plan were approximately $3.3 million , $3.3 million and $3.4 million , respectively. In April 2002, we adopted the Chico’s FAS, Inc. Deferred Compensation Plan (the “Deferred Plan”) to provide supplemental retirement income benefits for highly compensated employees. Eligible participants may elect to defer up to 80 percent of their base salary and 100 percent of their bonus earned under an approved bonus plan pursuant to the terms and conditions of the Deferred Plan. The Deferred Plan generally provides for payments upon retirement, death, disability, termination of employment or a defined period of years. As of January 1, 2019, the Company introduced a match on employee contributions of 50% on the first 2.5% of base salary deferrals. The amount of the deferred compensation liability payable to the participants is included in deferred liabilities in the consolidated balance sheets. These obligations are funded through the purchase of corporate owned life insurance (COLI), cash and other securities held within a grantor trust established by the Company to hold assets for the payment of benefits under the Deferred Plan to participants. The trust assets are reflected in other assets in the accompanying consolidated balance sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES: The income tax provision consisted of the following: Fiscal 2018 Fiscal 2017 Fiscal 2016 (in thousands) Current: Federal $ 5,903 $ 39,376 $ 49,994 State 3,378 4,877 5,654 Foreign 282 266 260 Total 9,563 44,519 55,908 Deferred: Federal (1,949 ) (3,669 ) (8,483 ) State 86 1,750 75 Total (1,863 ) (1,919 ) (8,408 ) Income tax provision $ 7,700 $ 42,600 $ 47,500 The foreign component of pre-tax income (loss), arising principally from operating foreign stores and other management and cost sharing charges we are required to allocate under U.S. tax law, for fiscal 2018 , 2017 and 2016 was $(1.7) million , $0.1 million and $0.1 million , respectively. On December 22, 2017, the Tax Act was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective January 1, 2018. As a result, the Company’s 2018 federal tax rate was 21% and blended federal tax rate for fiscal 2017 was 33.8% . As a result of the Tax Act and in accordance with SEC Staff Accounting Bulletin 118, the Company recorded provisional tax expense in the fourth quarter of fiscal 2017 related to executive compensation and other deferred tax balances. During fiscal 2018 , the Company made a $4.9 million reduction, or 11.2% benefit to the effective tax rate, to the provisional tax expense related to the acceleration of certain tax deductions into fiscal 2017 and the subsequent revaluation of the associated deferred tax liabilities to reflect the new rate. The change was a result of additional analysis, changes in interpretation and assumptions, as well as additional regulatory guidance that was issued. The Tax Act requires a one-time transition tax that is based on total post-1986 earnings and profits (“E & P”) previously deferred from U.S. income taxes. As the Company does not have any post-1986 E & P in its foreign subsidiaries, no one-time transition tax was recorded. No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the one-time transition tax, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations. There were no significant undistributed foreign earnings at February 2, 2019 , February 3, 2018 and January 28, 2017 . As of December 22, 2018, the Company has completed its accounting for the income tax effects of the Tax Act. A reconciliation between the statutory federal income tax rate and the effective income tax rate follows: Fiscal 2018 Fiscal 2017 Fiscal 2016 Federal income tax rate (blended rate for fiscal 2017 due to the Tax Act) 21.0 % 33.8 % 35.0 % State income tax, net of federal tax benefit 5.7 3.2 3.4 Impact of the Tax Act (11.2 ) (5.6 ) — Excess share-based compensation 3.2 0.9 — Outside basis difference - Boston Proper Sale — — (2.8 ) Other state benefits associated with sale and liquidation of Boston Proper — — (0.3 ) Enhanced charitable contribution (3.0 ) (1.1 ) (1.9 ) Executive compensation limitations 2.1 0.7 1.2 Foreign losses with full Valuation Allowance 1.1 0.1 0.2 Federal tax credits (1.1 ) (1.2 ) (0.5 ) Other items, net — (1.1 ) (0.1 ) Total 17.8 % 29.7 % 34.2 % Deferred tax assets and liabilities are recorded due to different carrying amounts for financial and income tax reporting purposes arising from cumulative temporary differences. These differences consist of the following as of February 2, 2019 and February 3, 2018 : February 2, 2019 February 3, 2018 (in thousands) Deferred tax assets: Accrued liabilities and allowances $ 10,984 $ 9,690 Accrued straight-line rent 12,302 13,364 Share-based compensation 5,936 5,606 Property related 1,881 2,009 Charitable contribution limitation carryforwards 4,400 2,604 State tax credits and net operating loss carryforwards 5,337 5,548 Other 2,681 1,879 Total deferred tax assets 43,521 40,700 Valuation allowance (1,111 ) (444 ) Net deferred tax assets 42,410 40,256 Deferred tax liabilities: Other — (119 ) Prepaid expenses (1,760 ) (4,823 ) Property related (26,733 ) (23,961 ) Other intangible assets (17,416 ) (16,666 ) Total deferred tax liabilities (45,909 ) (45,569 ) Net deferred taxes $ (3,499 ) $ (5,313 ) As of February 2, 2019 , the Company had available for state and local income tax purposes net operating losses and tax credit carryovers in the amounts of $21.8 million and $5.2 million , respectively, presented on a gross basis. The net operating losses and tax credit carryovers expire, if unused, in the years 2020 - 2035 and 2019 - 2027, respectively. Accumulated other comprehensive income is shown net of deferred tax assets and deferred tax liabilities. The amount was not significant at February 2, 2019 or February 3, 2018 . A reconciliation of the beginning and ending amounts of uncertain tax positions for each of fiscal 2018 , fiscal 2017 and fiscal 2016 is as follows: Fiscal 2018 Fiscal 2017 Fiscal 2016 (in thousands) Balance at beginning of year $ 1,522 $ 5,158 $ 4,840 Additions for tax positions of prior years 117 — 1,280 Reductions for tax positions of prior years (24 ) (105 ) (1 ) Additions for tax positions for the current year 87 289 246 Settlements/payments with tax authorities (197 ) (3,667 ) (850 ) Reductions due to lapse of applicable statutes of limitation — (153 ) (357 ) Balance at end of year $ 1,505 $ 1,522 $ 5,158 At February 2, 2019 , February 3, 2018 and January 28, 2017 , balances included $1.2 million , $1.2 million and $4.4 million respectively, of unrecognized tax benefits that, if recognized, would favorably impact the effective tax rate in future periods. We do not expect any events to occur that would cause a change to our unrecognized tax benefits or income tax expense within the next twelve months. Our continuing practice is to recognize potential accrued interest and penalties relating to unrecognized tax benefits in the income tax provision. For fiscal 2018 , 2017 and 2016 , we accrued $0.1 million , $0.1 million and $0.2 million , respectively for interest and penalties. We had approximately $0.3 million , $0.3 million and $0.5 million , respectively for the payment of interest and penalties accrued at February 2, 2019 , February 3, 2018 and January 28, 2017 , respectively. The amounts included in the reconciliation of uncertain tax positions do not include accruals for interest and penalties. In fiscal 2006, we began participating in the IRS’s real time audit program, Compliance Assurance Process (“CAP”). Under the CAP program, material tax issues and initiatives are disclosed to the IRS throughout the year with the objective of reaching an agreement as to the proper reporting treatment when the federal return is filed. Previous years through fiscal 2016 have been accepted. Fiscal 2017 is in the post-filing review process. We are no longer subject to state and local examinations for years before fiscal 2011. Various state examinations are currently underway for fiscal periods spanning from 2012 through 2016; however, we do not expect any significant change to our uncertain tax positions within the next year. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Feb. 02, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | NET INCOME PER SHARE: The following table sets forth the computation of basic and diluted net income per share shown on the face of the accompanying consolidated statements of income (in thousands, except per share amounts): February 2, 2019 February 3, 2018 January 28, 2017 Numerator Net income $ 35,613 $ 101,000 $ 91,229 Net income and dividends declared allocated to participating securities (879 ) (2,300 ) (1,915 ) Net income available to common shareholders $ 34,734 $ 98,700 $ 89,314 Denominator Weighted average common shares outstanding – basic 122,662 125,341 128,995 Dilutive effect of non-participating securities 67 62 242 Weighted average common and common equivalent shares outstanding – diluted 122,729 125,403 129,237 Net income per common share: Basic $ 0.28 $ 0.79 $ 0.69 Diluted $ 0.28 $ 0.79 $ 0.69 In each of the fiscal years 2018 , 2017 and 2016 , 0.7 million of potential shares of common stock were excluded from the diluted per share calculation relating to non-participating securities, because the effect of including these potential shares was antidilutive. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Feb. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED): Net Sales Gross Net Income Net Income Per Net Income Per (dollars in thousands, except per share amounts) Fiscal year ended February 2, 2019: First quarter $ 561,815 $ 226,868 $ 29,004 $ 0.23 $ 0.23 Second quarter 544,720 196,867 16,768 0.13 0.13 Third quarter 1 499,877 180,978 6,481 0.05 0.05 Fourth quarter (thirteen weeks) 2 524,728 158,701 $ (16,640 ) (0.14 ) (0.14 ) Fiscal year ended February 3, 2018: First quarter $ 583,728 $ 237,413 $ 33,619 $ 0.26 $ 0.26 Second quarter 578,581 209,101 22,716 0.18 0.18 Third quarter 3 532,287 196,702 16,690 0.13 0.13 Fourth quarter (fourteen weeks) 4 587,783 221,561 27,975 0.22 0.22 1 Third quarter fiscal 2018 results include the favorable tax benefit of approximately $5 million related to the Tax Act. 2 Fourth quarter fiscal 2018 results include the unfavorable impact of impairment and accelerated depreciation charges of approximately $8 million , after-tax, related to our retail fleet optimization plan. 3 Third quarter fiscal 2017 results include the unfavorable impact of the Hurricanes of approximately $5 million , after-tax. 2 Fourth quarter fiscal 2017 results include the favorable impact of the Tax Act of approximately $10 million . |
Subsequent Events
Subsequent Events | 12 Months Ended |
Feb. 02, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS: On February 28, 2019, we announced that our Board of Directors declared a quarterly dividend of $0.0875 per share on our common stock. The dividend will be payable on April 1, 2019 to shareholders of record at the close of business on March 18, 2019. Although it is our Company’s intention to continue to pay a quarterly cash dividend in the future, any decision to pay future cash dividends will be made by the Board of Directors and will depend on future earnings, financial condition and other factors. |
Business Organization and Sum_2
Business Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 02, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Year | Fiscal Year Our fiscal years end on the Saturday closest to January 31 and are designated by the calendar year in which the fiscal year commences. The periods presented in these consolidated financial statements are the fiscal years ended February 2, 2019 (“fiscal 2018 ” or “current period”), February 3, 2018 (“fiscal 2017 ” or “prior period”) and January 28, 2017 (“fiscal 2016 ”). |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Segment Information | Segment Information Our brands, Chico’s, White House Black Market ("WHBM") and Soma have been identified as separate operating segments and aggregated into one reportable segment due to the similarities of the economic and operating characteristics of the brands. |
Adoption of and Newly Issued Accounting Pronouncements | Adoption of New Accounting Pronouncements On August 17, 2018, the SEC adopted a final rule that eliminates or amends certain disclosure requirements that were deemed redundant and outdated in light of changes in SEC requirements, U.S. GAAP or changes in technology or the business environment. The final rule became effective November 5, 2018. The eliminated or amended disclosures did not have a material impact on the Company’s consolidated financial statements. In the third quarter of fiscal 2018, we early adopted the guidance of Accounting Standards Update ("ASU") 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, which aligns the requirements for capitalizing implementation costs in a cloud computing arrangement (“CCA”) service contract with the requirements for capitalizing implementation costs incurred for an internal-use software license. Under this guidance, entities that enter into hosted CCA service contracts will apply the existing internal-use software guidance to determine which implementation costs are capitalized or expensed depending on the nature of the costs and project stage during which they are incurred. Capitalized implementation costs are presented in the same line item of the balance sheet that a prepayment of fees for the associated hosting arrangement is presented and will be amortized over the term of the associated hosted CCA service on a straight-line basis. Amortization of capitalized implementation costs will be presented in the same line on the income statement as fees for the associated hosted CCA service. The provisions of ASU 2018-15 were adopted on a prospective basis and prior period amounts have not been adjusted and continue to be reported in accordance with the previous guidance. In fiscal 2018, the Company recorded $1.1 million in capitalized CCA service contract implementation costs which is presented it in other assets, net, in the accompanying consolidated balance sheets. In the first quarter of fiscal 2018, we early adopted the guidance of 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 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 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 upon adoption which include: 1) revenue related to our online sales are 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 are 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. Recently Issued Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (the “FASB”) issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The amendments related to the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively. All other amendments should be applied retrospectively. An entity is permitted to early adopt any removed or modified disclosures upon issuance of ASU 2018-13 and delay adoption of the additional disclosures until their effective date. We do not anticipate adoption to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases, which replaces the existing guidance in Accounting Standard Codification 840 (“ASC 840”), Leases. The FASB has also issued subsequent ASUs related to ASU 2016-02, which detail amendments to the ASU, implementation considerations, narrow-scope improvements and practical expedients. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The guidance is required to be adopted using the modified retrospective approach, which provides an entity the option to apply the guidance at the beginning of the earliest comparative period presented, or at the beginning of the period in which it is adopted. The Company has elected to apply the guidance at the beginning of the period in which it is adopted. The standard requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use ("ROU") asset and corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset and for operating leases, the lessee would recognize straight-line total rent expense. The Company expects to utilize the related package of practical expedients permitted by the transition guidance in ASU 2016-02, which allows the Company to carry forward its identification of contracts that are or contain leases, its historical lease classification and its initial direct costs for existing leases. The Company has implemented ASU 2016-02 compliant lease accounting software and currently expects to recognize lease liabilities for its operating leases totaling between $800 million and $900 million upon adoption. The initial ROU assets recognized will be equal to the initial operating lease liabilities, adjusted for the balance on adoption date of prepaid and accrued rent and lease incentives. The Company currently expects to recognize ROU assets totaling between $700 million and $800 million upon adoption. The Company has not completed its validation work over the implementation and its impact on the financial statements, and therefore, the amounts recorded in fiscal 2019 may differ from these estimates, which are based upon information available and procedures completed to date. The Company is assessing the impact of adoption on impairment accounting that may ultimately impact the quantified carrying value of the ROU assets for stores that were deemed to be impaired as part of our retail fleet optimization plan. The Company does not believe adoption of this standard will have a material effect on the Company's consolidated results of operations or cash flow presentation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and in banks, short-term highly liquid investments with original maturities of three months or less and payments due from banks for third-party credit card and debit transactions for approximately 3 to 5 days of sales. |
Marketable Securities | Marketable Securities Marketable securities are classified as available-for-sale and 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 and fair value are determined on a specific identification basis. We consider all securities available-for-sale, including those with maturity dates beyond 12 months, and therefore classify these securities within current assets on the consolidated balance sheets as they are available to support current operational liquidity needs. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our consolidated financial instruments consist of cash, money market accounts, marketable securities, assets held in our non-qualified deferred compensation plan, accounts receivable, accounts 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. |
Inventories | Inventories We use the weighted average cost method to determine the cost of merchandise inventories. We identify potentially excess and slow-moving inventories by evaluating inventory aging, turn rates and inventory levels in conjunction with our overall sales trend. Further, inventory realization exposure is identified through analysis of gross margins and markdowns in combination with changes in current business trends. We record excess and slow-moving inventories at net realizable value and may liquidate certain slow-moving inventory through third parties. We estimate our expected shrinkage of inventories between physical inventory counts by using average store shrinkage experience rates, which are updated on a regular basis. Substantially all of our inventories consist of finished goods. Costs associated with sourcing are generally capitalized while merchandising, distribution and product development costs are generally expensed as incurred and are included in the accompanying consolidated statements of income as a component of cost of goods sold ("COGS"). |
Property and Equipment | Property and Equipment Property and equipment is stated at cost, net of accumulated depreciation and amortization. Depreciation of property and equipment is provided on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of their estimated useful lives (generally 10 years or less) or the related lease term, plus one anticipated renewal when there is an economic cost associated with non-renewal. Our property and equipment is generally depreciated using the following estimated useful lives: Estimated Useful Lives Land improvements 15 - 35 years Building and building improvements 20 - 35 years Equipment, furniture and fixtures 2 - 20 years Leasehold improvements 10 years or term of lease, if shorter Maintenance and repairs of property and equipment are expensed as incurred, and major improvements are capitalized. Upon retirement, sale or other disposition of property and equipment, the cost and accumulated depreciation or amortization are eliminated from the accounts, and any gain or loss is charged to income. |
Operating Leases | Operating Leases We lease retail stores and a limited amount of office space under operating leases. The majority of our lease agreements provide for tenant improvement allowances, rent escalation clauses and/or contingent rent provisions. Tenant improvement allowances are recorded as a deferred lease credit within deferred liabilities and amortized as a reduction of rent expense over the term of the lease. Rent escalation clauses, “rent-free” periods and other rental expenses are amortized on a straight-line basis over the term of the leases, including the construction period. Certain leases provide for contingent rents, in addition to a basic fixed rent, which are determined as a percentage of gross sales in excess of specified levels. We record a contingent rent liability in accrued liabilities on the consolidated balance sheets and the corresponding rent expense when specified levels have been achieved or when it is determined that achieving the specified levels during the lease year is probable. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other indefinite-lived intangible assets are assessed for impairment at least annually. We perform our annual impairment test during the fourth quarter, or more frequently should events or circumstances change that would indicate that impairment may have occurred. Goodwill represents the excess of the purchase price over the fair value of identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. Impairment testing for goodwill is done at a reporting unit level. Reporting units are defined as an operating segment or one level below an operating segment, called a component. Using these criteria, we identified our reporting units and concluded that the goodwill related to the territorial franchise rights for the state of Minnesota should be allocated to the Chico’s reporting unit and the goodwill associated with the WHBM acquisition should be assigned to the WHBM reporting unit. We evaluate the appropriateness of performing a qualitative assessment, on a reporting unit level, based on current circumstances. If we do not perform a qualitative assessment, or if we determine that it is not more likely than not that the carrying value of the reporting unit exceeds its fair value, we calculate the estimated fair value of the reporting unit. Fair value is determined based on both an income approach and market approach. The income approach is based on estimated future cash flows, discounted at a rate that approximates the cost of capital of a market participant, while the market approach is based on sales and EBITDA multiples of similar companies and/or transactions, or other available indications of value. For fiscal 2017 and fiscal 2016 , we performed a qualitative assessment of the goodwill associated with the Chico's and WHBM reporting units and concluded it was more likely than not that the fair value exceeded the carrying amount as of the annual assessment dates. Had the Company elected to skip the qualitative assessment, or if the results of the qualitative assessment indicated that it was more likely than not that the fair value of a reporting unit was less than its carrying amount, a two-step impairment test would have been performed. The first step of the impairment test compares the fair value of our reporting units with their carrying amounts, including goodwill. If the carrying amount exceeds fair value, then the second step of the impairment test is performed to measure the amount of any impairment loss. In fiscal 2018 , the Company adopted ASU 2017-04, Simplifying 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. For 2018 , we elected to skip the qualitative assessment and perform impairment testing for each of our reporting units. The estimated fair value of each of our reporting units exceeded the respective carrying value and, as such, we concluded that the goodwill was not impaired. We test indefinite-lived intangible assets for impairment by first assessing qualitative factors to determine whether it is more likely than not that the fair value of the intangible is less than its carrying amount. If the results of the qualitative assessment indicate that it is more likely than not that the fair value of the intangible is less than its carrying amount, we calculate the value of the indefinite-lived intangible assets using a discounted cash flow method, based on the relief from royalty concept, and compare the fair value to the carrying value to determine if the asset is impaired. We may elect to skip the qualitative assessment when appropriate based on current circumstances. For fiscal 2017 and 2016 , we performed a qualitative assessment of the WHBM trade name and concluded it was more likely than not that the fair value exceeded the carrying amount as of the annual assessment dates. For fiscal 2018 , we elected to skip the qualitative assessment and perform impairment testing on the WHBM trade name. The estimated fair value of the WHBM trade name exceeded the respective carrying value and, as such, we concluded the WHBM trade name was not impaired. |
Accounting for the Impairment of Long-lived Assets | Accounting for the Impairment of Long-lived Assets Long-lived assets, including definite-lived intangibles, are reviewed periodically for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable. If future undiscounted cash flows expected to be generated by the asset are less than its carrying amount, an asset is determined to be impaired. The fair value of an asset is estimated using estimated future cash flows of the asset discounted by a rate commensurate with the risk involved with such asset while incorporating marketplace assumptions. The impairment loss recorded is the amount by which the carrying value of the asset exceeds its fair value. In fiscal 2018 , 2017 and 2016 , we completed an evaluation of long-lived assets at certain underperforming stores for indicators of impairment and, as a result, recorded impairment charges of approximately $13.3 million , $6.0 million and $2.5 million , respectively, which are primarily included in costs of goods sold in the accompanying consolidated statements of income. Impairment charges in fiscal 2018 included $9.4 million in connection with our retail fleet optimization plan as further discussed in Note 3. Impairment charges in fiscal 2017 included $2.9 million resulting from hurricanes Harvey, Irma and Maria. |
Revenue Recognition and Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs to transport goods to customers amounted to $58.5 million , $40.5 million and $35.9 million in fiscal 2018 , 2017 and 2016 , respectively, and are included within COGS in the accompanying consolidated statements of income. Revenue Recognition 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. For sales from our websites and catalogs, in fiscal 2018 revenue is recognized at the point of shipment whereas in fiscal 2017 and 2016 , revenue was recognized at the time we estimated the customer received the product, which was typically within a few days 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 COGS in the accompanying consolidated statements of income. 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. 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. 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. |
Advertising Costs | Advertising Costs For fiscal 2018 , 2017 and 2016 , advertising costs associated with the production of non-media advertising are charged to expense as incurred. For fiscal 2018 , media production costs (such as television, magazine and catalogs) are expensed when the advertising first takes place whereas in 2017 and 2016 , these expenses were amortized over their expected period of future benefit, which was typically less than six weeks |
Share-Based Compensation | Share-Based Compensation Share-based compensation for all awards is based on the grant date fair value of the award, net of estimated forfeitures, and is recognized over the requisite service period of the awards. The fair value of restricted stock awards and performance-based awards is determined by using the closing price of the Company’s common stock on the date of the grant. Compensation expense for performance-based awards is recorded based on the amount of the award ultimately expected to vest, depending on the level and likelihood of the performance condition being met. |
Store Occupancy and Pre-Opening Costs | Store Occupancy and Pre-Opening Costs Store occupancy and pre-opening costs (including store-related costs and training expenses) incurred prior to the opening of new stores are expensed as incurred and are included within cost of sales in the accompanying consolidated statements of income. |
Income Taxes | Income Taxes Income taxes are accounted for in accordance with authoritative guidance, which requires the use of the asset and liability method. Deferred tax assets and liabilities are recognized based on the difference between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Additionally, we follow a comprehensive model to recognize, measure, present and disclose in our consolidated financial statements the estimated aggregate tax liability of uncertain tax positions that we have taken or expect to take on a tax return. This model states that a tax benefit from an uncertain tax position may be recognized if it is “more likely than not” that the position is sustainable, based upon its technical merits. The tax benefit of a qualifying position is the largest amount of tax benefit that has greater than a 50% likelihood of being realized upon the ultimate settlement with a taxing authority having full knowledge of all relevant information. |
Foreign Currency | Foreign Currency The functional currency of our foreign operations is generally the applicable local currency. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect as of the balance sheet date, while revenues and expenses are translated at the current exchange rate in effect as of the date of the transaction. The resulting translation adjustments are recorded as a component of comprehensive income in the consolidated statements of comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are included in the consolidated statements of income. |
Self-Insurance | Self-Insurance We are self-insured for certain losses relating to workers’ compensation, medical and general liability claims. Self-insurance claims filed and claims incurred but not reported are accrued based upon management’s estimates of the aggregate liability for uninsured claims incurred based on historical experience. While we do not expect the amount we will ultimately pay to differ significantly from our estimates, self-insurance accruals could be affected if future claims experience differs significantly from the historical trends and assumptions. |
Supplier Allowances | Supplier Allowances From time to time, we receive allowances and/or credits from certain of our suppliers. The aggregate amount of such allowances and credits, which is included in COGS, is immaterial to our consolidated results of operations. |
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 us, participating securities are composed entirely of unvested restricted stock awards and performance-based restricted stock units ("PSU's") that have met their relevant performance criteria. Under the two-class method, net income is reduced by the amount of dividends declared in the period for common stock and participating securities. The remaining undistributed earnings are then allocated to common stock and participating securities as if all of the net income for the period had been distributed. 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 the participating securities. Diluted EPS reflects the dilutive effect of potential common shares from non-participating securities such as stock options, PSU's and restricted stock units. |
Fair Value Measurements | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. 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. In fiscal 2018 , the $57.5 million outstanding debt under our revolving loan and letter of credit facility approximates fair value as this instrument has a variable interest rate which approximates current market rates (Level 2 criteria). To assess the fair value of long-term debt in fiscal 2017 , we utilized 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. |
Business Organization and Sum_3
Business Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Effects of Newly Adopted Accounting Pronouncements and Changes in Accounting Standards | The following table presents the effects that the aforementioned adopted accounting standards had on our February 3, 2018 consolidated balance sheet (in thousands): 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 consolidated statement of income for fiscal 2018 and consolidated balance sheet as of February 2, 2019 were as follows: FISCAL YEAR ENDED February 2, 2019 As Reported Effects of Standard Balances Without Adoption of ASU 2014-09 Sales $ 2,131,140 $ (2,670 ) $ 2,128,470 Cost of Goods Sold 1,367,726 (1,887 ) 1,365,839 Selling, general and administrative expenses 719,748 (621 ) 719,127 February 2, 2019 As Reported Effects of Standard Balances Without Adoption of ASU 2014-09 ASSETS Inventory $ 235,218 $ 1,409 $ 236,627 Prepaid expenses and other current assets 63,845 (4,169 ) 59,676 LIABILITIES AND SHAREHOLDERS’ EQUITY Other current and deferred liabilities $ 131,820 $ (2,598 ) $ 129,222 |
Schedule of Useful Life for Property and Equipment | Our property and equipment is generally depreciated using the following estimated useful lives: Estimated Useful Lives Land improvements 15 - 35 years Building and building improvements 20 - 35 years Equipment, furniture and fixtures 2 - 20 years Leasehold improvements 10 years or term of lease, if shorter Property and equipment, net, consisted of the following: February 2, 2019 February 3, 2018 (in thousands) Land and land improvements $ 30,620 $ 30,572 Building and building improvements 125,868 125,504 Equipment, furniture and fixtures 650,391 636,542 Leasehold improvements 496,972 529,835 Total property and equipment 1,303,851 1,322,453 Less: accumulated depreciation and amortization (932,919 ) (901,415 ) Property and equipment, net $ 370,932 $ 421,038 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of 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. Fiscal 2018 % Fiscal 2017 % Fiscal 2016 % (in thousands) Chico’s $ 1,098,707 51.6 % $ 1,187,603 52.0 % $ 1,285,830 51.9 % WHBM 694,804 32.6 750,912 32.9 846,035 34.2 Soma 337,629 15.8 343,864 15.1 344,545 13.9 Total net sales $ 2,131,140 100.0 % $ 2,282,379 100.0 % $ 2,476,410 100.0 % |
Retail Fleet Optimization Plan
Retail Fleet Optimization Plan (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of the Retail Fleet Optimization Charges | In fiscal 2018 , the Company recorded pre-tax impairment and accelerated depreciation charges within COGS of $9.4 million and $1.3 million , respectively, associated with this retail fleet optimization plan. A summary of the retail fleet optimization charges is presented in the table below: Fiscal 2018 (in thousands) Impairment (1) $ 9,434 Accelerated Depreciation (1) (2) 1,268 Fleet Optimization charges, pre-tax $ 10,702 (1) Adjustments for impairment and accelerated depreciation charges reflect the impact of incremental store closures included in the Company’s retail fleet optimization plan. (2) Accelerated depreciation represents incremental depreciation due to the change in the useful life of store assets as a result of the retail fleet optimization plan. |
Restructuring and Strategic C_2
Restructuring and Strategic Charges (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring and Strategic Charges | A summary of the restructuring and strategic charges is presented in the table below: Fiscal 2016 (in thousands) Impairment charges $ 1,453 Continuing employee-related costs 1,796 Severance charges 9,485 Proxy solicitation costs 5,697 Lease terminations 427 Outside services 12,013 Other charges 156 Restructuring and strategic charges, pre-tax $ 31,027 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Marketable Securities [Abstract] | |
Summary of Investments in Marketable Securities | The following tables summarize our investments in marketable securities at February 2, 2019 and February 3, 2018 : February 2, 2019 (in thousands) Amortized Gross Gross Estimated Total marketable securities $ 62,048 $ 38 $ (99 ) $ 61,987 February 3, 2018 (in thousands) Amortized Gross Gross Estimated Total marketable securities $ 60,361 $ — $ (301 ) $ 60,060 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Fair Value Disclosures [Abstract] | |
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 February 2, 2019 Quoted Prices Significant Other Significant (in thousands) Financial Assets: Current Assets Cash equivalents: Money market accounts $ 711 $ 711 $ — $ — Marketable securities: Corporate bonds 60,281 — 60,281 — Commercial paper 1,706 — 1,706 — Noncurrent Assets Deferred compensation plan 6,644 6,644 — — Total $ 69,342 $ 7,355 $ 61,987 $ — Financial Liabilities: Long-term debt 1 $ 57,500 $ — $ 57,500 $ — Fair Value Measurements at Reporting Date Using Balance as of February 3, 2018 Quoted Prices Significant Other Significant (in thousands) 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 $ — 1 As of February 2, 2019, long-term debt consists only of borrowings under our revolving credit facility as further discussed in Note 10. The carrying value of long-term debt as of February 3, 2018 includes the current and long-term portions and the remaining unamortized debt issuance costs. |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expenses and Accounts Receivable | Prepaid expenses and other current assets consisted of the following: February 2, 2019 February 3, 2018 (in thousands) Prepaid expenses $ 37,559 $ 52,189 Accounts receivable 21,394 8,479 Other current assets 4,892 — Prepaid expenses and other current assets $ 63,845 $ 60,668 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Our property and equipment is generally depreciated using the following estimated useful lives: Estimated Useful Lives Land improvements 15 - 35 years Building and building improvements 20 - 35 years Equipment, furniture and fixtures 2 - 20 years Leasehold improvements 10 years or term of lease, if shorter Property and equipment, net, consisted of the following: February 2, 2019 February 3, 2018 (in thousands) Land and land improvements $ 30,620 $ 30,572 Building and building improvements 125,868 125,504 Equipment, furniture and fixtures 650,391 636,542 Leasehold improvements 496,972 529,835 Total property and equipment 1,303,851 1,322,453 Less: accumulated depreciation and amortization (932,919 ) (901,415 ) Property and equipment, net $ 370,932 $ 421,038 |
Other Current and Deferred Li_2
Other Current and Deferred Liabilities (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Other Liabilities, Current [Abstract] | |
Schedule of Other Current and Deferred Liabilities | Other current and deferred liabilities consisted of the following: February 2, 2019 February 3, 2018 (in thousands) Allowance for customer returns, gift cards and store credits outstanding $ 57,827 $ 55,948 Accrued payroll, benefits, bonuses and severance costs and termination benefits 24,391 29,685 Current portion of deferred rent and lease credits 19,397 19,158 Other 30,205 28,924 Other current and deferred liabilities $ 131,820 $ 133,715 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table provides details on our debt outstanding as of February 2, 2019 and February 3, 2018 : February 2, 2019 February 3, 2018 (in thousands) Credit Agreement, net $ 57,500 $ 68,601 Less: current debt — (15,000 ) Long-term debt $ 57,500 $ 53,601 |
Other Noncurrent and Deferred_2
Other Noncurrent and Deferred Liabilities (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Deferred Credits and Other Liabilities [Abstract] | |
Schedule of Other Noncurrent and Deferred Liabilities | Other Noncurrent and Deferred liabilities consisted of the following: February 2, 2019 February 3, 2018 (in thousands) Deferred rent $ 46,228 $ 50,529 Deferred lease credits, net 50,336 63,932 Other noncurrent and deferred liabilities 10,570 7,979 Noncurrent and deferred liabilities 107,134 122,440 Less: current portion of deferred rent and lease credits (18,025 ) (19,158 ) Other noncurrent and deferred liabilities $ 89,109 $ 103,282 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Future Rental Payments | Minimum future rental payments under non-cancelable operating leases (including leases with certain minimum sales cancellation clauses described below and exclusive of common area maintenance charges and/or contingent rental payments based on sales) as of February 2, 2019 , are approximately as follows: FISCAL YEAR ENDING: (in thousands) February 1, 2020 $ 186,280 January 30, 2021 169,477 January 29, 2022 146,390 January 28, 2023 114,293 February 3, 2024 75,410 Thereafter 110,812 Total minimum lease payments $ 802,662 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans and Capital Stock Transactions (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Restricted Stock Activity | Restricted stock activity for fiscal 2018 was as follows: Number of Weighted Unvested, beginning of period 2,328,259 $ 13.08 Granted 1,944,280 9.68 Vested (1,187,553 ) 12.90 Forfeited (369,520 ) 11.64 Unvested, end of period 2,715,466 10.92 |
Schedule of Performance-Based Stock Units | Performance-based stock unit activity for fiscal 2018 was as follows: Number of Weighted Unvested, beginning of period 690,950 $ 13.65 Granted 725,300 9.87 Vested (190,777 ) 13.08 Forfeited (158,135 ) 12.65 Unvested, end of period 1,067,338 11.40 |
Summary of Stock Option Activity | Stock option activity for fiscal 2018 was as follows: Number of Weighted Weighted Aggregate (in thousands) Outstanding, beginning of period 368,745 $ 12.36 Granted — — Exercised (42,200 ) 3.60 Forfeited or expired (112,268 ) 13.39 Outstanding, end of period 214,277 13.54 1.8 $ — Vested at February 2, 2019 214,277 13.54 1.8 — Exercisable at February 2, 2019 214,277 13.54 1.8 — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision | The income tax provision consisted of the following: Fiscal 2018 Fiscal 2017 Fiscal 2016 (in thousands) Current: Federal $ 5,903 $ 39,376 $ 49,994 State 3,378 4,877 5,654 Foreign 282 266 260 Total 9,563 44,519 55,908 Deferred: Federal (1,949 ) (3,669 ) (8,483 ) State 86 1,750 75 Total (1,863 ) (1,919 ) (8,408 ) Income tax provision $ 7,700 $ 42,600 $ 47,500 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation between the statutory federal income tax rate and the effective income tax rate follows: Fiscal 2018 Fiscal 2017 Fiscal 2016 Federal income tax rate (blended rate for fiscal 2017 due to the Tax Act) 21.0 % 33.8 % 35.0 % State income tax, net of federal tax benefit 5.7 3.2 3.4 Impact of the Tax Act (11.2 ) (5.6 ) — Excess share-based compensation 3.2 0.9 — Outside basis difference - Boston Proper Sale — — (2.8 ) Other state benefits associated with sale and liquidation of Boston Proper — — (0.3 ) Enhanced charitable contribution (3.0 ) (1.1 ) (1.9 ) Executive compensation limitations 2.1 0.7 1.2 Foreign losses with full Valuation Allowance 1.1 0.1 0.2 Federal tax credits (1.1 ) (1.2 ) (0.5 ) Other items, net — (1.1 ) (0.1 ) Total 17.8 % 29.7 % 34.2 % |
Schedule of Deferred Tax Assets and Liabilities | These differences consist of the following as of February 2, 2019 and February 3, 2018 : February 2, 2019 February 3, 2018 (in thousands) Deferred tax assets: Accrued liabilities and allowances $ 10,984 $ 9,690 Accrued straight-line rent 12,302 13,364 Share-based compensation 5,936 5,606 Property related 1,881 2,009 Charitable contribution limitation carryforwards 4,400 2,604 State tax credits and net operating loss carryforwards 5,337 5,548 Other 2,681 1,879 Total deferred tax assets 43,521 40,700 Valuation allowance (1,111 ) (444 ) Net deferred tax assets 42,410 40,256 Deferred tax liabilities: Other — (119 ) Prepaid expenses (1,760 ) (4,823 ) Property related (26,733 ) (23,961 ) Other intangible assets (17,416 ) (16,666 ) Total deferred tax liabilities (45,909 ) (45,569 ) Net deferred taxes $ (3,499 ) $ (5,313 ) |
Schedule of Uncertain Tax Positions Reconciliation | A reconciliation of the beginning and ending amounts of uncertain tax positions for each of fiscal 2018 , fiscal 2017 and fiscal 2016 is as follows: Fiscal 2018 Fiscal 2017 Fiscal 2016 (in thousands) Balance at beginning of year $ 1,522 $ 5,158 $ 4,840 Additions for tax positions of prior years 117 — 1,280 Reductions for tax positions of prior years (24 ) (105 ) (1 ) Additions for tax positions for the current year 87 289 246 Settlements/payments with tax authorities (197 ) (3,667 ) (850 ) Reductions due to lapse of applicable statutes of limitation — (153 ) (357 ) Balance at end of year $ 1,505 $ 1,522 $ 5,158 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share shown on the face of the accompanying consolidated statements of income (in thousands, except per share amounts): February 2, 2019 February 3, 2018 January 28, 2017 Numerator Net income $ 35,613 $ 101,000 $ 91,229 Net income and dividends declared allocated to participating securities (879 ) (2,300 ) (1,915 ) Net income available to common shareholders $ 34,734 $ 98,700 $ 89,314 Denominator Weighted average common shares outstanding – basic 122,662 125,341 128,995 Dilutive effect of non-participating securities 67 62 242 Weighted average common and common equivalent shares outstanding – diluted 122,729 125,403 129,237 Net income per common share: Basic $ 0.28 $ 0.79 $ 0.69 Diluted $ 0.28 $ 0.79 $ 0.69 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED): Net Sales Gross Net Income Net Income Per Net Income Per (dollars in thousands, except per share amounts) Fiscal year ended February 2, 2019: First quarter $ 561,815 $ 226,868 $ 29,004 $ 0.23 $ 0.23 Second quarter 544,720 196,867 16,768 0.13 0.13 Third quarter 1 499,877 180,978 6,481 0.05 0.05 Fourth quarter (thirteen weeks) 2 524,728 158,701 $ (16,640 ) (0.14 ) (0.14 ) Fiscal year ended February 3, 2018: First quarter $ 583,728 $ 237,413 $ 33,619 $ 0.26 $ 0.26 Second quarter 578,581 209,101 22,716 0.18 0.18 Third quarter 3 532,287 196,702 16,690 0.13 0.13 Fourth quarter (fourteen weeks) 4 587,783 221,561 27,975 0.22 0.22 1 Third quarter fiscal 2018 results include the favorable tax benefit of approximately $5 million related to the Tax Act. 2 Fourth quarter fiscal 2018 results include the unfavorable impact of impairment and accelerated depreciation charges of approximately $8 million , after-tax, related to our retail fleet optimization plan. 3 Third quarter fiscal 2017 results include the unfavorable impact of the Hurricanes of approximately $5 million , after-tax. 2 Fourth quarter fiscal 2017 results include the favorable impact of the Tax Act of approximately $10 million . |
Business Organization and Sum_4
Business Organization and Summary of Significant Accounting Policies - Description of Business, Fiscal Year, Segment Information (Details) | 12 Months Ended |
Feb. 02, 2019storesegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of stores throughout the U.S., U.S. Virgin Islands, Puerto Rico, and Canada | 1,418 |
Number of franchise locations in and around Mexico | 83 |
Number of reportable segments | segment | 1 |
Business Organization and Sum_5
Business Organization and Summary of Significant Accounting Policies - Adoption of New Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
May 05, 2018 | Feb. 02, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Cloud Computing Arrangement costs capitalized | $ 1.1 | |
Accounting Standards Update 2016-16 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect adjustment increasing (decreasing) retained earnings | $ (5.7) | |
Accounting Standards Update 2014-09 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect adjustment increasing (decreasing) retained earnings | $ 0.7 |
Business Organization and Sum_6
Business Organization and Summary of Significant Accounting Policies - Effects of Newly Adopted Accounting Standards (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
ASSETS | |||||||||||
Inventories | $ 235,218 | $ 233,726 | $ 235,218 | $ 233,726 | |||||||
Prepaid expenses and other current assets | 63,845 | 60,668 | 63,845 | 60,668 | |||||||
Other assets, net | 15,220 | 16,338 | 15,220 | 16,338 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Other current and deferred liabilities | 131,820 | 133,715 | 131,820 | 133,715 | |||||||
Deferred taxes | 5,237 | 7,372 | 5,237 | 7,372 | |||||||
Retained earnings | 587,145 | 599,810 | 587,145 | 599,810 | |||||||
Accumulated other comprehensive loss | (361) | (44) | (361) | (44) | |||||||
Sales | 524,728 | $ 499,877 | $ 544,720 | $ 561,815 | 587,783 | $ 532,287 | $ 578,581 | $ 583,728 | 2,131,140 | 2,282,379 | $ 2,476,410 |
Cost of goods sold | 1,367,726 | 1,417,602 | 1,529,574 | ||||||||
Selling, general and administrative expenses | 719,748 | 719,607 | $ 775,107 | ||||||||
ASU 2018-02 | |||||||||||
ASSETS | |||||||||||
Inventories | 0 | 0 | |||||||||
Prepaid expenses and other current assets | 0 | 0 | |||||||||
Other assets, net | 0 | 0 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Other Liabilities, Current | 0 | 0 | |||||||||
Deferred Income Tax Liabilities, Net | 0 | 0 | |||||||||
Retained earnings | 39 | 39 | |||||||||
Accumulated other comprehensive loss | (39) | (39) | |||||||||
ASU 2016-16 | |||||||||||
ASSETS | |||||||||||
Inventories | 0 | 0 | |||||||||
Prepaid expenses and other current assets | (500) | (500) | |||||||||
Other assets, net | (5,206) | (5,206) | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Other Liabilities, Current | 0 | 0 | |||||||||
Deferred Income Tax Liabilities, Net | 0 | 0 | |||||||||
Retained earnings | (5,706) | (5,706) | |||||||||
Accumulated other comprehensive loss | 0 | 0 | |||||||||
ASU 2014-09 | |||||||||||
ASSETS | |||||||||||
Inventories | (824) | (824) | |||||||||
Prepaid expenses and other current assets | 5,389 | 5,389 | |||||||||
Other assets, net | 0 | 0 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Other Liabilities, Current | 3,677 | 3,677 | |||||||||
Deferred Income Tax Liabilities, Net | 236 | 236 | |||||||||
Retained earnings | 652 | 652 | |||||||||
Accumulated other comprehensive loss | 0 | 0 | |||||||||
February 3, 2018 (As Adjusted) | |||||||||||
ASSETS | |||||||||||
Inventories | 232,902 | 232,902 | |||||||||
Prepaid expenses and other current assets | 65,557 | 65,557 | |||||||||
Other assets, net | 11,132 | 11,132 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Other current and deferred liabilities | 137,392 | 137,392 | |||||||||
Deferred taxes | 7,608 | 7,608 | |||||||||
Retained earnings | 594,795 | 594,795 | |||||||||
Accumulated other comprehensive loss | $ (83) | $ (83) | |||||||||
Effects of Standard | ASU 2014-09 | |||||||||||
ASSETS | |||||||||||
Inventories | 1,409 | 1,409 | |||||||||
Prepaid expenses and other current assets | (4,169) | (4,169) | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Other current and deferred liabilities | (2,598) | (2,598) | |||||||||
Sales | (2,670) | ||||||||||
Cost of goods sold | (1,887) | ||||||||||
Selling, general and administrative expenses | (621) | ||||||||||
Balances Without Adoption of ASU 2014-09 | |||||||||||
ASSETS | |||||||||||
Inventories | 236,627 | 236,627 | |||||||||
Prepaid expenses and other current assets | 59,676 | 59,676 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Other current and deferred liabilities | $ 129,222 | 129,222 | |||||||||
Sales | 2,128,470 | ||||||||||
Cost of goods sold | 1,365,839 | ||||||||||
Selling, general and administrative expenses | $ 719,127 |
Business Organization and Sum_7
Business Organization and Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) | 12 Months Ended |
Feb. 02, 2019 | |
Minimum | |
Cash and Cash Equivalents [Line Items] | |
Threshold period for third-party credit and debit transactions | 3 days |
Maximum | |
Cash and Cash Equivalents [Line Items] | |
Threshold period for third-party credit and debit transactions | 5 days |
Business Organization and Sum_8
Business Organization and Summary of Significant Accounting Policies - Inventories (Details) | 12 Months Ended | |
Feb. 02, 2019 | Feb. 03, 2018 | |
CHINA | Geographic Concentration Risk | Cost of Goods | ||
Concentration Risk [Line Items] | ||
Percentage of purchases and merchandise risk | 48.00% | 52.00% |
One Supplier | Supplier Concentration Risk | ||
Concentration Risk [Line Items] | ||
Percentage of purchases and merchandise risk | 23.00% | 23.00% |
Business Organization and Sum_9
Business Organization and Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Feb. 02, 2019 | |
Land improvements | Minimum | |
Estimate useful life | 15 years |
Land improvements | Maximum | |
Estimate useful life | 35 years |
Building and building improvements | Minimum | |
Estimate useful life | 20 years |
Building and building improvements | Maximum | |
Estimate useful life | 35 years |
Equipment, furniture and fixtures | Minimum | |
Estimate useful life | 2 years |
Equipment, furniture and fixtures | Maximum | |
Estimate useful life | 20 years |
Leasehold improvements | Maximum | |
Estimate useful life | 10 years |
Business Organization and Su_10
Business Organization and Summary of Significant Accounting Policies - Accounting for the Impairment of Long-lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Oct. 28, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Liability for Catastrophe Claims [Line Items] | ||||
Asset impairment charges | $ 5,000 | $ 13,300 | $ 6,000 | $ 2,500 |
Hurricane | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Asset impairment charges | 2,900 | |||
Cost of Goods | Retail Fleet Optimization Plan | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Asset impairment charges | $ 9,434 |
Business Organization and Su_11
Business Organization and Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Advertising expense | $ 102.5 | $ 94.5 | $ 115.4 |
Business Organization and Su_12
Business Organization and Summary of Significant Accounting Policies - Shipping and Handling Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Product Information [Line Items] | |||
Cost of goods sold | $ 1,367,726 | $ 1,417,602 | $ 1,529,574 |
Shipping and Handling | |||
Product Information [Line Items] | |||
Cost of goods sold | $ 58,500 | $ 40,500 | $ 35,900 |
Business Organization and Su_13
Business Organization and Summary of Significant Accounting Policies - Recently Issued Accounting Pronouncements (Details) - Scenario, Forecast - Subsequent Event $ in Millions | Feb. 03, 2019USD ($) |
Minimum | |
Item Effected [Line Items] | |
Operating lease liabilities | $ 800 |
Operating lease right of use assets | 700 |
Maximum | |
Item Effected [Line Items] | |
Operating lease liabilities | 900 |
Operating lease right of use assets | $ 800 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 524,728 | $ 499,877 | $ 544,720 | $ 561,815 | $ 587,783 | $ 532,287 | $ 578,581 | $ 583,728 | $ 2,131,140 | $ 2,282,379 | $ 2,476,410 |
Total Net Sales, as a percentage | 100.00% | 100.00% | 100.00% | ||||||||
Contract liabilities | $ 42,600 | $ 43,600 | $ 42,600 | $ 43,600 | |||||||
Contract liability revenue recognized | 28,700 | ||||||||||
Chico’s | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 1,098,707 | $ 1,187,603 | $ 1,285,830 | ||||||||
Total Net Sales, as a percentage | 51.60% | 52.00% | 51.90% | ||||||||
WHBM | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 694,804 | $ 750,912 | $ 846,035 | ||||||||
Total Net Sales, as a percentage | 32.60% | 32.90% | 34.20% | ||||||||
Soma | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 337,629 | $ 343,864 | $ 344,545 | ||||||||
Total Net Sales, as a percentage | 15.80% | 15.10% | 13.90% |
Retail Fleet Optimization Pla_2
Retail Fleet Optimization Plan (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Feb. 02, 2019USD ($)store | Oct. 28, 2017USD ($) | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($)store | Jan. 28, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Number of under-performing stores to close (at least for grand total) | store | 150 | ||||
Duration of retail fleet optimization plan | 3 years | ||||
Impairment | $ | $ 5,000 | $ 13,300 | $ 6,000 | $ 2,500 | |
Accelerated depreciation | $ | $ 8,000 | ||||
Cost of Goods | Retail Fleet Optimization Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment | $ | 9,434 | ||||
Accelerated depreciation | $ | 1,268 | ||||
Fleet Optimization charges, pre-tax | $ | $ 10,702 | ||||
UNITED STATES | Retail Fleet Optimization Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of under-performing stores to close (at least for grand total) | store | 250 | ||||
Chico's | UNITED STATES | Retail Fleet Optimization Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of under-performing stores to close (at least for grand total) | store | 100 | ||||
WHBM | UNITED STATES | Retail Fleet Optimization Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of under-performing stores to close (at least for grand total) | store | 90 | ||||
Soma | UNITED STATES | Retail Fleet Optimization Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of under-performing stores to close (at least for grand total) | store | 60 |
Restructuring and Strategic C_3
Restructuring and Strategic Charges - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($)store | Jan. 28, 2017USD ($) | |
Restructuring and Related Activities [Abstract] | |||
Number of under-performing stores to close | store | 150 | ||
Restructuring and strategic charges | $ | $ 0 | $ 0 | $ 31,027 |
Restructuring and Strategic C_4
Restructuring and Strategic Charges - Summary of Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Oct. 28, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment charges | $ 5,000 | $ 13,300 | $ 6,000 | $ 2,500 |
Restructuring and strategic charges, pre-tax | $ 0 | $ 0 | 31,027 | |
Impairment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment charges | 1,453 | |||
Continuing employee-related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and strategic charges, pre-tax | 1,796 | |||
Severance charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and strategic charges, pre-tax | 9,485 | |||
Proxy solicitation costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and strategic charges, pre-tax | 5,697 | |||
Lease terminations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and strategic charges, pre-tax | 427 | |||
Outside services | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and strategic charges, pre-tax | 12,013 | |||
Other charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and strategic charges, pre-tax | $ 156 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) $ in Millions | Feb. 02, 2019USD ($) |
Marketable Securities [Abstract] | |
Marketable securities, current | $ 42.6 |
Marketable securities, noncurrent | $ 19.4 |
Marketable Securities - Summary
Marketable Securities - Summary of Investments in Marketable Securities (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Marketable Securities [Abstract] | ||
Marketable securities, Amortized Cost | $ 62,048 | $ 60,361 |
Marketable securities, Gross Unrealized Gains | 38 | 0 |
Marketable securities, Gross Unrealized Losses | (99) | (301) |
Marketable securities, Estimated Fair Value | $ 61,987 | $ 60,060 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market accounts | $ 711 | $ 1,250 |
Marketable securities | 61,987 | 60,060 |
Deferred compensation plan | 6,644 | 7,315 |
Total | 69,342 | 68,625 |
Long-term debt | 57,500 | 68,601 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market accounts | 711 | 1,250 |
Deferred compensation plan | 6,644 | 7,315 |
Total | 7,355 | 8,565 |
Long-term debt | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market accounts | 0 | 0 |
Deferred compensation plan | 0 | 0 |
Total | 61,987 | 60,060 |
Long-term debt | 57,500 | 69,036 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market accounts | 0 | 0 |
Deferred compensation plan | 0 | 0 |
Total | 0 | 0 |
Long-term debt | 0 | 0 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 6,557 | |
Municipal securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Municipal securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 6,557 | |
Municipal securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 12,744 | |
U.S. government agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
U.S. government agencies | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 12,744 | |
U.S. government agencies | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 60,281 | 37,030 |
Corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Corporate bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 60,281 | 37,030 |
Corporate bonds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 1,706 | 3,729 |
Commercial paper | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Commercial paper | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 1,706 | 3,729 |
Commercial paper | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 0 | $ 0 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses | $ 37,559 | $ 52,189 |
Accounts receivable | 21,394 | 8,479 |
Other current assets | 4,892 | 0 |
Prepaid expenses and other current assets | $ 63,845 | $ 60,668 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Total property and equipment | $ 1,303,851 | $ 1,303,851 | $ 1,322,453 | |
Less: accumulated depreciation and amortization | (932,919) | (932,919) | (901,415) | |
Property and equipment, net | 370,932 | 370,932 | 421,038 | |
Depreciation expense | 91,200 | 96,200 | $ 109,100 | |
Accelerated depreciation | 8,000 | |||
Land and land improvements | ||||
Total property and equipment | 30,620 | 30,620 | 30,572 | |
Building and building improvements | ||||
Total property and equipment | 125,868 | 125,868 | 125,504 | |
Equipment, furniture and fixtures | ||||
Total property and equipment | 650,391 | 650,391 | 636,542 | |
Leasehold improvements | ||||
Total property and equipment | $ 496,972 | 496,972 | $ 529,835 | |
Retail Fleet Optimization Plan | Cost of Goods | ||||
Accelerated depreciation | $ 1,268 |
Other Current and Deferred Li_3
Other Current and Deferred Liabilities (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Other Liabilities, Current [Abstract] | ||
Allowance for customer returns, gift cards and store credits outstanding | $ 57,827 | $ 55,948 |
Accrued payroll, benefits, bonuses and severance costs and termination benefits | 24,391 | 29,685 |
Current portion of deferred rent and lease credits | 19,397 | 19,158 |
Other | 30,205 | 28,924 |
Other current and deferred liabilities | $ 131,820 | $ 133,715 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Aug. 02, 2018 | Feb. 02, 2019 | Feb. 03, 2018 | May 04, 2015 |
Debt Instrument [Line Items] | ||||
Total borrowings outstanding | $ 57,500,000 | $ 68,601,000 | ||
Unamortized debt discount | 500,000 | |||
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility amount | $ 200,000,000 | $ 100,000,000 | ||
Additional increase available | $ 100,000,000 | |||
Unused commitment fee rate | 0.20% | |||
Available for borrowings under facility | $ 142,500,000 | |||
Term Loan | ||||
Debt Instrument [Line Items] | ||||
Term loan commitment | $ 100,000,000 | |||
Federal Funds Rate | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.25% | |||
LIBOR | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.25% |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Debt Disclosure [Abstract] | ||
Credit Agreement, net | $ 57,500 | $ 68,601 |
Less: current debt | 0 | (15,000) |
Long-term debt | $ 57,500 | $ 53,601 |
Other Noncurrent and Deferred_3
Other Noncurrent and Deferred Liabilities (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Deferred Credits and Other Liabilities [Abstract] | ||
Deferred rent | $ 46,228 | $ 50,529 |
Deferred lease credits, net | 50,336 | 63,932 |
Other noncurrent and deferred liabilities | 10,570 | 7,979 |
Noncurrent and deferred liabilities | 107,134 | 122,440 |
Less: current portion of deferred rent and lease credits | (18,025) | (19,158) |
Other noncurrent and deferred liabilities | $ 89,109 | $ 103,282 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Minimum Future Rental Payments (Details) $ in Thousands | Feb. 02, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
February 1, 2020 | $ 186,280 |
January 30, 2021 | 169,477 |
January 29, 2022 | 146,390 |
January 28, 2023 | 114,293 |
February 3, 2024 | 75,410 |
Thereafter | 110,812 |
Total minimum lease payments | $ 802,662 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2015 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating lease total rent expense | $ 261,300,000 | $ 263,700,000 | $ 268,500,000 | |
Common area maintenance expenses on leases | 48,000,000 | 47,900,000 | 47,600,000 | |
Other rental charges | 40,900,000 | 40,300,000 | 41,200,000 | |
Contingent rental expense | 3,600,000 | 4,300,000 | $ 5,200,000 | |
Open cancellable purchase orders for inventory | $ 321,800,000 | $ 316,500,000 | ||
Altman V. White House Black Market, Inc. | Pending Litigation | Minimum | ||||
Loss Contingencies [Line Items] | ||||
Statutory damages sought for each alleged willful violation | $ 100 | |||
Altman V. White House Black Market, Inc. | Pending Litigation | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Statutory damages sought for each alleged willful violation | $ 1,000 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans and Capital Stock Transactions - General (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Apr. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Expected term (years) | 10 years | |||
Compensation expense related to stock-based awards | $ 19,783 | $ 20,677 | $ 21,249 | |
Tax benefit associated with stock-based compensation | $ 5,000 | $ 7,600 | $ 8,100 | |
Minimum | Performance-Based Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 0.00% | |||
Maximum | Performance-Based Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 175.00% | |||
Omnibus Stock and Incentive Plan, Amended and Restated | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock shares for future issuance (in shares) | 7,200,000 | 15,500,000 | ||
Nonqualified stock options outstanding (in shares) | 200,000 |
Share-Based Compensation Plan_4
Share-Based Compensation Plans and Capital Stock Transactions - Restricted Stock Activity (Details) - Restricted Stock | 12 Months Ended |
Feb. 02, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested, beginning of period (in shares) | shares | 2,328,259 |
Granted (in shares) | shares | 1,944,280 |
Vested (in shares) | shares | (1,187,553) |
Forfeited (in shares) | shares | (369,520) |
Unvested, end of period (in shares) | shares | 2,715,466 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unvested, beginning of period, weighted average grant date fair value (in usd per share) | $ / shares | $ 13.08 |
Granted, weighted average grant date fair value (in usd per share) | $ / shares | 9.68 |
Vested, weighted average grant date fair value (in usd per share) | $ / shares | 12.90 |
Forfeited, weighted average grant date fair value (in usd per share) | $ / shares | 11.64 |
Unvested, end of period, weighted average grant date fair value (in usd per share) | $ / shares | $ 10.92 |
Share-Based Compensation Plan_5
Share-Based Compensation Plans and Capital Stock Transactions - Restricted Stock Awards (Narrative) (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of shares vested during the period | $ 10.6 | $ 15.6 | $ 14.7 |
Weighted average grant date fair value for grants in period (in usd per share) | $ 9.68 | $ 13.23 | $ 12.38 |
Unrecognized compensation expense | $ 15.6 | ||
Period for recognition | 1 year 8 months 12 days |
Share-Based Compensation Plan_6
Share-Based Compensation Plans and Capital Stock Transactions - Performance-Based Stock Unit Activity (Details) - Performance-Based Stock Units | 12 Months Ended |
Feb. 02, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested, beginning of period (in shares) | shares | 690,950 |
Granted (in shares) | shares | 725,300 |
Vested (in shares) | shares | (190,777) |
Forfeited (in shares) | shares | (158,135) |
Unvested, end of period (in shares) | shares | 1,067,338 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unvested, beginning of period, weighted average grant date fair value (in usd per share) | $ / shares | $ 13.65 |
Weighted average grant date fair value for grants in period (in usd per share) | $ / shares | 9.87 |
Vested, weighted average grant date fair value (in usd per share) | $ / shares | 13.08 |
Forfeited, weighted average grant date fair value (in usd per share) | $ / shares | 12.65 |
Unvested, end of period, weighted average grant date fair value (in usd per share) | $ / shares | $ 11.40 |
Share-Based Compensation Plan_7
Share-Based Compensation Plans and Capital Stock Transactions - Performance-based Stock Units (Narrative) (Details) - Performance-Based Stock Units - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of shares vested during the period | $ 1.9 | $ 4.2 | $ 2.9 |
Unrecognized compensation expense | $ 3.8 | ||
Period for recognition | 1 year 9 months 14 days 9 hours 36 minutes |
Share-Based Compensation Plan_8
Share-Based Compensation Plans and Capital Stock Transactions - Stock Option Awards (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Total intrinsic value of options exercised | $ 200 | $ 10 | $ 700 |
Share-Based Compensation Plan_9
Share-Based Compensation Plans and Capital Stock Transactions - Stock Option Activity (Details) - Employee Stock Option $ / shares in Units, $ in Thousands | 12 Months Ended |
Feb. 02, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding, beginning of period (in shares) | shares | 368,745 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (42,200) |
Forfeited or expired (in shares) | shares | (112,268) |
Outstanding, end of period (in shares) | shares | 214,277 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Outstanding, beginning of period, weighted average exercise price (in usd per share) | $ / shares | $ 12.36 |
Granted, weighted average exercise price (in usd per share) | $ / shares | 0 |
Exercised, weighted average exercise price (in usd per share) | $ / shares | 3.60 |
Forfeited or expired, weighted average exercise price (in usd per share) | $ / shares | 13.39 |
Outstanding, end of period, weighted average exercise price (in usd per share) | $ / shares | $ 13.54 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | |
Vested, Number of Shares (in shares) | shares | 214,277 |
Exercisable, Number of Shares (in shares) | shares | 214,277 |
Vested, weighted average exercise price (in usd per share) | $ / shares | $ 13.54 |
Exercisable, weighted average exercise price (in usd per share) | $ / shares | $ 13.54 |
Outstanding, weighted average remaining contractual term, years | 1 year 9 months 18 days |
Vested, weighted average remaining contractual term, years | 1 year 9 months 18 days |
Exercisable, weighted average remaining contractual term, years | 1 year 9 months 18 days |
Outstanding, aggregate intrinsic value | $ | $ 0 |
Vested, aggregate intrinsic value | $ | 0 |
Exercisable, aggregate intrinsic value | $ | $ 0 |
Share-Based Compensation Pla_10
Share-Based Compensation Plans and Capital Stock Transactions - Employee Stock Purchase Plan (Narrative) (Details) - Employee Stock shares in Thousands, $ in Millions | 12 Months Ended | ||
Feb. 02, 2019USD ($)offering_periodshares | Feb. 03, 2018shares | Jan. 28, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of offering periods under the ESPP | offering_period | 2 | ||
Percentage of the value of stock employees can purchase at | 85.00% | ||
Shares purchased under the ESPP (in shares) | shares | 175 | 232 | 191 |
Cash received from purchases under ESPP | $ | $ 1.4 |
Share-Based Compensation Pla_11
Share-Based Compensation Plans and Capital Stock Transactions - Share Repurchase Program (Narrative) (Details) - 2015 Share Repurchase Program - USD ($) shares in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Nov. 30, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased during period (in shares) | 12.2 | 2.7 | |
Total stock repurchased and held during period, value | $ 81,100,000 | $ 27,400,000 | |
Stock repurchase program, authorized amount | $ 300,000,000 | ||
Remaining authorized repurchase amount | $ 55,200,000 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2018 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Period of service required for coverage | 6 months | 1 year | |||
Number of hours required to qualify for 401(k) plan | 500 hours | 1000 hours | |||
Period of service required for full vesting | 5 years | ||||
Percentage of employee contributions | 75.00% | ||||
Percent of match on contributions | 50.00% | 50.00% | |||
Employer matching contribution, percent of employees' gross pay | 2.50% | 6.00% | |||
Costs under the Plan | $ 3.3 | $ 3.3 | $ 3.4 | ||
Deferred Salary | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Maximum annual contribution percentage per employee | 80.00% | ||||
Deferred Bonus | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Maximum annual contribution percentage per employee | 100.00% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Current: | |||
Federal | $ 5,903 | $ 39,376 | $ 49,994 |
State | 3,378 | 4,877 | 5,654 |
State | 282 | 266 | 260 |
Total | 9,563 | 44,519 | 55,908 |
Deferred: | |||
Federal | (1,949) | (3,669) | (8,483) |
State | 86 | 1,750 | 75 |
Total | (1,863) | (1,919) | (8,408) |
Income tax provision | $ 7,700 | $ 42,600 | $ 47,500 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Nov. 03, 2018 | Feb. 03, 2018 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Foreign component of pre-tax income (loss) | $ (1.7) | $ 0.1 | $ 0.1 | ||
Blended tax rate | 21.00% | 33.80% | 35.00% | ||
Reduction in income tax expense | $ (5) | $ (10) | $ (4.9) | ||
Benefit to effective tax rate | 11.20% | 5.60% | (0.00%) | ||
Net operating losses | $ 21.8 | ||||
Tax credit carryovers | 5.2 | ||||
Unrecognized tax benefits, that would impact the effective tax rate | 1.2 | 1.2 | $ 1.2 | $ 4.4 | |
Income tax penalties and interest expense | 0.1 | 0.1 | 0.2 | ||
Accrued interest and penalties | $ 0.3 | $ 0.3 | $ 0.3 | $ 0.5 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Reconciliation (Details) | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate (blended rate for fiscal 2017 due to the Tax Act) | 21.00% | 33.80% | 35.00% |
State income tax, net of federal tax benefit | 5.70% | 3.20% | 3.40% |
Impact of the Tax Act | (11.20%) | (5.60%) | 0.00% |
Excess share-based compensation | 3.20% | 0.90% | 0.00% |
Outside basis difference - Boston Proper Sale | 0.00% | 0.00% | (2.80%) |
Other state benefits associated with sale and liquidation of Boston Proper | 0.00% | 0.00% | (0.30%) |
Enhanced charitable contribution | (3.00%) | (1.10%) | (1.90%) |
Executive compensation limitations | 2.10% | 0.70% | 1.20% |
Foreign losses with full Valuation Allowance | 1.10% | 0.10% | 0.20% |
Federal tax credits | (1.10%) | (1.20%) | (0.50%) |
Other items, net | 0.00% | (1.10%) | (0.10%) |
Total | 17.80% | 29.70% | 34.20% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Deferred tax assets: | ||
Accrued liabilities and allowances | $ 10,984 | $ 9,690 |
Accrued straight-line rent | 12,302 | 13,364 |
Share-based compensation | 5,936 | 5,606 |
Property related | 1,881 | 2,009 |
Charitable contribution limitation carryforwards | 4,400 | 2,604 |
State tax credits and net operating loss carryforwards | 5,337 | 5,548 |
Other | 2,681 | 1,879 |
Total deferred tax assets | 43,521 | 40,700 |
Valuation allowance | (1,111) | (444) |
Net deferred tax assets | 42,410 | 40,256 |
Deferred tax liabilities: | ||
Other | 0 | (119) |
Prepaid expenses | (1,760) | (4,823) |
Property related | (26,733) | (23,961) |
Other intangible assets | (17,416) | (16,666) |
Total deferred tax liabilities | (45,909) | (45,569) |
Net deferred taxes | $ (3,499) | $ (5,313) |
Income Taxes - Schedule of Unce
Income Taxes - Schedule of Uncertain Tax Positions Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 1,522 | $ 5,158 | $ 4,840 |
Additions for tax positions of prior years | 117 | 0 | 1,280 |
Reductions for tax positions of prior years | (24) | (105) | (1) |
Additions for tax positions for the current year | 87 | 289 | 246 |
Settlements/payments with tax authorities | (197) | (3,667) | (850) |
Reductions due to lapse of applicable statutes of limitation | 0 | (153) | (357) |
Balance at end of year | $ 1,505 | $ 1,522 | $ 5,158 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Numerator | ||||||||||||
Net income | $ (16,640) | $ 6,481 | $ 16,768 | $ 29,004 | $ 27,975 | $ 16,690 | $ 22,716 | $ 33,619 | $ 35,613 | $ 35,613 | $ 101,000 | $ 91,229 |
Net income and dividends declared allocated to participating securities | (879) | (2,300) | (1,915) | |||||||||
Net income available to common shareholders | $ 34,734 | $ 98,700 | $ 89,314 | |||||||||
Denominator | ||||||||||||
Weighted average common shares outstanding–basic (in shares) | 122,662 | 125,341 | 128,995 | |||||||||
Dilutive effect of non-participating securities (in shares) | 67 | 62 | 242 | |||||||||
Weighted average common and common equivalent shares outstanding–diluted (in shares) | 122,729 | 125,403 | 129,237 | |||||||||
Net income per common share: | ||||||||||||
Basic (in usd per share) | $ 0.28 | $ 0.79 | $ 0.69 | |||||||||
Diluted (in usd per share) | $ 0.28 | $ 0.79 | $ 0.69 | |||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 700 | 700 | 700 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Net Sales | $ 524,728 | $ 499,877 | $ 544,720 | $ 561,815 | $ 587,783 | $ 532,287 | $ 578,581 | $ 583,728 | $ 2,131,140 | $ 2,282,379 | $ 2,476,410 | |
Gross Margin | 158,701 | 180,978 | 196,867 | 226,868 | 221,561 | 196,702 | 209,101 | 237,413 | 763,414 | 864,777 | 946,836 | |
Net Income | $ (16,640) | $ 6,481 | $ 16,768 | $ 29,004 | $ 27,975 | $ 16,690 | $ 22,716 | $ 33,619 | $ 35,613 | 35,613 | 101,000 | 91,229 |
Net Income Per Common Share - Basic (in usd per share) | $ (0.14) | $ 0.05 | $ 0.13 | $ 0.23 | $ 0.22 | $ 0.13 | $ 0.18 | $ 0.26 | ||||
Net Income Per Common and Common Equivalent Share - Diluted (in usd per share) | $ (0.14) | $ 0.05 | $ 0.13 | $ 0.23 | $ 0.22 | $ 0.13 | $ 0.18 | $ 0.26 | ||||
Favorable impact of Tax Act | $ 5,000 | $ 10,000 | 4,900 | |||||||||
Accelerated depreciation | $ 8,000 | |||||||||||
Asset impairment charges | $ 5,000 | $ 13,300 | $ 6,000 | $ 2,500 |
Subsequent Events (Details)
Subsequent Events (Details) | Feb. 28, 2019$ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Quarterly dividend (in usd per share) | $ 0.0875 |