Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
May 05, 2018 | Jun. 11, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 5, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | PERY | |
Entity Registrant Name | PERRY ELLIS INTERNATIONAL, INC | |
Entity Central Index Key | 900,349 | |
Current Fiscal Year End Date | --02-01 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 15,867,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | May 05, 2018 | Feb. 03, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 50,471 | $ 35,222 |
Investments, at fair value | 4,912 | 14,086 |
Accounts receivable, net | 201,818 | 156,863 |
Inventories | 150,965 | 175,459 |
Prepaid expenses and other current assets | 9,810 | 8,151 |
Total current assets | 417,976 | 389,781 |
Property and equipment, net | 55,425 | 56,164 |
Other intangible assets, net | 186,017 | 186,216 |
Deferred income tax | 541 | 411 |
Other assets | 1,569 | 1,590 |
TOTAL | 661,528 | 634,162 |
Current Liabilities: | ||
Accounts payable | 52,674 | 98,848 |
Accrued expenses and other liabilities | 44,858 | 35,768 |
Accrued interest payable | 350 | 1,334 |
Accrued income tax payable | 1,805 | 1,466 |
Unearned revenues | 4,651 | 2,907 |
Total current liabilities | 104,338 | 140,323 |
Senior subordinated notes payable, net | 49,855 | 49,818 |
Senior credit facility | 62,404 | 11,154 |
Real estate mortgages | 32,495 | 32,721 |
Income tax payable | 3,868 | 4,157 |
Unearned revenues and other long-term liabilities | 13,989 | 13,524 |
Deferred income taxes | 7,269 | 4,915 |
Total long-term liabilities | 169,880 | 116,289 |
Total liabilities | 274,218 | 256,612 |
Commitment and contingencies | ||
Equity: | ||
Preferred stock $.01 par value; 5,000,000 shares authorized; no shares issued or outstanding | ||
Common stock $.01 par value; 100,000,000 shares authorized; 15,868,685 shares issued and outstanding as of May 5, 2018 and 15,690,669 shares issued and outstanding as of February 3, 2018 | 159 | 157 |
Additional paid-in-capital | 153,087 | 151,563 |
Retained earnings | 242,336 | 232,977 |
Accumulated other comprehensive loss | (8,272) | (7,147) |
Total equity | 387,310 | 377,550 |
TOTAL | $ 661,528 | $ 634,162 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | May 05, 2018 | Feb. 03, 2018 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 15,868,685 | 15,690,669 |
Common stock, shares outstanding | 15,868,685 | 15,690,669 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Revenues: | ||
Net sales | $ 245,435 | $ 233,823 |
Royalty income | 9,799 | 8,267 |
Total revenues | 255,234 | 242,090 |
Cost of sales | 161,367 | 151,002 |
Gross profit | 93,867 | 91,088 |
Operating expenses: | ||
Selling, general and administrative expenses | 75,549 | 71,199 |
Depreciation and amortization | 3,227 | 3,468 |
Total operating expenses | 78,776 | 74,667 |
Operating income | 15,091 | 16,421 |
Interest expense | 2,009 | 1,956 |
Net income before income taxes | 13,082 | 14,465 |
Income tax provision | 2,835 | 1,694 |
Net income | $ 10,247 | $ 12,771 |
Net income per share: | ||
Basic | $ 0.68 | $ 0.85 |
Diluted | $ 0.66 | $ 0.83 |
Weighted average number of shares outstanding | ||
Basic | 15,156 | 15,009 |
Diluted | 15,519 | 15,303 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Net income | $ 10,247 | $ 12,771 |
Other Comprehensive (loss) income: | ||
Foreign currency translation adjustments, net | (1,676) | 279 |
Unrealized gain (loss) on forward contract | 541 | (362) |
Unrealized gain on investments | 10 | 6 |
Total other comprehensive loss | (1,125) | (77) |
Comprehensive income | $ 9,122 | $ 12,694 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 10,247 | $ 12,771 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 3,309 | 3,554 |
Provision for bad debts | 766 | 759 |
Amortization of debt issue cost | 104 | 101 |
Amortization of premiums and discounts | 7 | 20 |
Deferred income taxes | 2,274 | (1,789) |
Share-based compensation | 1,686 | 1,843 |
Changes in operating assets and liabilities, net of acquisitions | ||
Accounts receivable, net | (33,690) | (43,816) |
Inventories | 23,449 | 11,910 |
Prepaid income taxes | 318 | 1,737 |
Prepaid expenses and other current assets | (238) | 331 |
Other assets | (52) | (72) |
Accounts payable and accrued expenses | (50,662) | (27,044) |
Accrued interest payable | (984) | (907) |
Income taxes payable | (30) | 1,570 |
Unearned revenues and other liabilities | 418 | 1,265 |
Net cash used in operating activities | (43,078) | (37,767) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (1,693) | (1,901) |
Purchase of investments | 0 | (10,256) |
Proceeds from investments maturities | 9,184 | 4,655 |
Net cash provided by (used in) investing activities | 7,491 | (7,502) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings from senior credit facility | 106,959 | 98,764 |
Payments on senior credit facility | (55,709) | (57,140) |
Payments on real estate mortgages | (225) | (220) |
Payments for employee taxes on shares withheld | (259) | 0 |
Payments on capital leases | (17) | (69) |
Proceeds from exercise of stock options | 101 | 23 |
Net cash provided by financing activities | 50,850 | 41,358 |
Effect of exchange rate changes on cash and cash equivalents | (14) | (380) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 15,249 | (4,291) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 35,222 | 30,695 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 50,471 | 26,404 |
Cash paid during the period for: | ||
Interest | 2,883 | 2,742 |
Income taxes | 163 | 19 |
NON-CASH FINANCING AND INVESTING ACTIVITIES: | ||
Accrued purchases of property and equipment | 85 | $ 208 |
Capital lease financing | $ 703 |
General
General | 3 Months Ended |
May 05, 2018 | |
General | 1. GENERAL The accompanying unaudited condensed consolidated financial statements of Perry Ellis International, Inc. and subsidiaries (“Perry Ellis” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the requirements of the Securities and Exchange Commission on Form 10-Q 10-K The information presented reflects all adjustments, which are in the opinion of management of a normal and recurring nature, necessary for a fair presentation of the interim periods. Results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the entire fiscal year. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
May 05, 2018 | |
Recent Accounting Pronouncements | 2. RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606) 2014-09 The cumulative effects of the changes made to the condensed consolidated balance sheet at February 4, 2018, as a result of the adoption of ASC 606 were as follows: Balance at Adjustments Balance at February 3, due to ASC February 4, 2018 606 2018 (in thousands) Accounts receivable, net 156,863 13,017 169,880 Prepaid expenses and other current assets 8,151 1,420 9,571 Deferred income tax 411 43 454 Accrued expenses and other liabilities 35,768 14,294 50,062 Unearned revenues 2,907 1,313 4,220 Deferred income taxes 4,915 (239 ) 4,676 Retained earnings 232,977 (888 ) 232,089 In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (subtopic 825-10): No. 2016-01 In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments available-for-sale available-for-sale In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force),” No. 2016-01 In May 2017, the FASB issued ASU No. 2017-09 , “Compensation – Stock Compensation (Topic718): Scope of Modification Accounting No. 2016-01 In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception,” In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” On December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220):Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” In February 2018, the FASB issued ASU No. 2018-03, Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10): 2016-01. No. 2016-01 In March 2018, the FASB issued ASU No. 2018-05, “Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118,” |
Revenue recognition
Revenue recognition | 3 Months Ended |
May 05, 2018 | |
Revenue recognition | 3. REVENUE RECOGNITION The Company recognizes revenue pursuant to ASC 606. The majority of the Company’s revenue is derived from the sales of its products, which represents net sales recorded in the Company’s condensed consolidated statements of income. The Company also recognizes revenues for sales-based royalties related to its licenses of its symbolic intellectual property principally consisting of licenses of trade names and trademarks, which represents royalty income recorded in the Company’s condensed consolidated statements of income. Disaggregation of revenue The Company has four reportable segments: Men’s Sportswear and Swim, Women’s Sportswear, Direct-to-Consumer Performance Obligations Product sales are recognized when performance obligations under the terms of the contract with the customer are satisfied. Typically, this would occur upon transfer of control, including passage of title to the customer and transfer of risk of loss related to those goods. Transfer of title and risk of loss is based upon shipment under free on board shipping point for most goods. In some instances, transfer of title and risk of loss takes place at the point of sale at the Company’s retail stores and e-commerce co-op re-assessed The Company’s contracts with customers, for a license to symbolic intellectual property, typically include a nonrefundable minimum guarantee On the Company’s consolidated balance sheet, reserves for returns, allowances, co-op Contract Balances The Company recognizes unearned royalty income when licensees pay contractual obligations before being earned or when up-front Certain of the Company’s contracts with customers that provide for the license of intellectual property do not meet the adopted practical expedients. As of May 5, 2018, the Company had approximately 163 contracts for the license of intellectual property with unsatisfied performance obligations extending through December 2026. The total aggregate transaction price allocated to the unsatisfied performance obligations of these contracts was approximately $170.5 million, of which $39.5 million is expected to be realized in fiscal 2019. Significant Judgements The Company records reductions to revenue for estimated customer returns, allowances, co-op co-op Practical Expedients and Policy Elections The Company has adopted or made a policy election related to the accounting for sales tax, shipping and handling, costs to obtain a contract, significant financing components and . • Sales Tax The Company has elected to exclude sales tax and similar taxes from the measurement of transaction price. As the Company historically has presented taxes on a net revenue basis, there is no change to the current presentation as a result of the adoption of ASC 606. • Shipping and Handling Costs Costs associated for shipment of products to a customer are accounted for as a fulfillment cost and are included in selling, general and administrative expenses. The Company has elected to apply the practical expedient for shipping costs and will account for shipping and handling activities performed after control of a good has been transferred to the customer as a fulfillment cost and not a performance obligation. Therefore, both revenue and costs of shipping and handling will be recorded at the same time. • Costs to Obtain and Fulfill a Contract The Company historically has recognized the incremental costs of obtaining contracts as an expense when incurred, and if the amortization period of the assets that the Company otherwise would have recognized is one year or less, there is no change to the current presentation as a result of the adoption of ASC 606. As such, the Company has elected to adopt the practical expedient for costs to obtain and fulfill a contract. The Company, as of February 3, 2018 and May 5, 2018, incurred no incremental costs to obtain or fulfill the Company’s contracts with customers that were required to be capitalized. • Significant Financing Component The Company does not believe that there is a significant financing component related to product sales or for licenses of symbolic intellectual property since at inception of the contract the Company expects to be paid within one year and the right to access the license is transferred over time, respectively. As such, the Company has elected to adopt the practical expedient for evaluating whether there is a significant financing component. • Transaction Price Allocated to Future Performance Obligations Certain of the Company’s contracts meet the following practical expedients: (1) (2) (3) The impact of adoption of ASC 606 on the condensed consolidated balance sheet at May 5, 2018 and condensed consolidated statement of income for the three months ended May 5, 2018 was as follows: May 5, 2018 Excluding Adjustments due to ASC As Reported 606 (1) As Adjusted (in thousands) Accounts receivable, net 201,818 (14,757 ) 187,061 Prepaid expenses and other current assets 9,810 (1,953 ) 7,857 Accrued expenses and other liabilities 44,858 (16,743 ) 28,115 Accrued income tax payable 1,805 (60 ) 1,745 Unearned revenues 4,651 (245 ) 4,406 Retained earnings 242,336 338 242,674 Three Months Ended May 5, 2018 Excluding Adjustments due to ASC As Reported 606 (1) As Adjusted (in thousands) Royalty income 9,799 (1,226 ) 8,573 Total revenues 255,234 (1,226 ) 254,008 Gross profit 93,867 (1,226 ) 92,641 Selling, general and administrative expenses 75,549 (1,504 ) 74,045 Total operating expenses 78,776 (1,504 ) 77,272 Operating income 15,091 (278 ) 14,813 Income tax provision 2,835 (60 ) 2,775 Net income 10,247 (338 ) 9,909 (1) Refer to footnote 2: Accounting Standards Update, No. 2014-09, |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
May 05, 2018 | |
Accounts Receivable | 4. ACCOUNTS RECEIVABLE Accounts receivable consisted of the following as of: May 5, February 3, 2018 2018 (in thousands) Trade accounts $ 196,930 $ 163,872 Royalties 6,540 7,107 Other receivables 912 902 Total 204,382 171,881 Less: Allowances (1) (2,564 ) (15,018 ) Total $ 201,818 $ 156,863 (1) Due to the adoption of Accounting Standards Update No 2014-09, “Revenue from Contracts with Customers (ASC 606),” |
Inventories
Inventories | 3 Months Ended |
May 05, 2018 | |
Inventories | 5. INVENTORIES Inventories are stated at the lower of cost (weighted moving average cost) or net realizable value. Cost principally consists of the purchase price, customs, duties, freight, and commissions to buying agents. Inventories consisted of the following as of: May 5, February 3, 2018 2018 (in thousands) Finished goods $ 150,965 $ 175,459 |
Investments
Investments | 3 Months Ended |
May 05, 2018 | |
Investments | 6. INVESTMENTS The Company’s investments include marketable securities and certificates of deposit at May 5, 2018 and February 3, 2018. Certificates of deposit with maturity dates less than one year are classified as available-for-sale. available-for-sale Investments consisted of the following as of May 5, 2018: Gross Gross Estimated Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Marketable securities $ 905 $ — $ — $ 905 Certificates of deposit 4,011 — (4 ) 4,007 Total investments $ 4,916 $ — $ (4 ) $ 4,912 Investments consisted of the following as of February 3, 2018: Gross Gross Estimated Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Marketable securities $ 6,655 $ — $ (5 ) $ 6,650 Certificates of deposit 7,441 — (5 ) 7,436 Total investments $ 14,096 $ — $ (10 ) $ 14,086 |
Property and Equipment
Property and Equipment | 3 Months Ended |
May 05, 2018 | |
Property and Equipment | 7. PROPERTY AND EQUIPMENT Property and equipment consisted of the following as of: May 5, February 3, 2018 2018 (in thousands) Furniture, fixtures and equipment $ 98,158 $ 97,414 Buildings and building improvements 22,288 22,341 Vehicles 537 537 Leasehold improvements 47,088 47,765 Land 9,431 9,430 Total 177,502 177,487 Less: accumulated depreciation and amortization (122,077 ) (121,323 ) Total $ 55,425 $ 56,164 The above table of property and equipment includes assets held under capital leases as of: May 5, February 3, 2018 2018 (in thousands) Furniture, fixtures and equipment $ 703 $ 810 Less: accumulated depreciation and amortization (18 ) (722 ) Total $ 685 $ 88 For the three months ended May 5, 2018 and April 29, 2017, depreciation and amortization expense relating to property and equipment amounted to $3.1 and $3.3 million, respectively. These amounts include amortization expense for leased property under capital leases. |
Other Intangible Assets
Other Intangible Assets | 3 Months Ended |
May 05, 2018 | |
Other Intangible Assets | 8. OTHER INTANGIBLE ASSETS Trademarks Trademarks included in other intangible assets, net, are considered indefinite-lived assets and totaled $184.1 million at May 5, 2018 and February 3, 2018. Other Other intangible assets represent customer lists as of: May 5, February 3, 2018 2018 (in thousands) Customer lists $ 8,450 $ 8,450 Less: accumulated amortization (6,578 ) (6,380 ) Total $ 1,872 $ 2,070 For the three months ended May 5, 2018 and April 29, 2017, amortization expense relating to customer lists amounted to approximately $0.2 million for each of the periods. Other intangible assets are amortized over their estimated useful lives of 10 years. Assuming no impairment, the table sets forth the estimated amortization expense for future periods based on recorded amounts as of February 3, 2018: (in thousands) 2019 $ 793 2020 $ 734 2021 $ 543 |
Letter of Credit Facilities
Letter of Credit Facilities | 3 Months Ended |
May 05, 2018 | |
Letter of Credit Facilities | 9. LETTER OF CREDIT FACILITIES Borrowings and availability under letter of credit facilities consisted of the following as of: May 5, February 3, (in thousands) Total letter of credit facilities $ 30,000 $ 30,000 Outstanding letters of credit (10,268 ) (10,268 ) Total credit available $ 19,732 $ 19,732 |
Advertising and Related Costs
Advertising and Related Costs | 3 Months Ended |
May 05, 2018 | |
Advertising and Related Costs | 10. ADVERTISING AND RELATED COSTS The Company’s accounting policy relating to advertising and related costs is to expense these costs in the period incurred. Advertising and related costs were approximately $5.7 million and $4.0 million for the three months ended May 5, 2018 and April 29, 2017, respectively, and are included in selling, general and administrative expenses. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
May 05, 2018 | |
Net Income Per Share | 11. NET INCOME PER SHARE Basic net income per share is computed by dividing net income by the weighted average shares of outstanding common stock. The calculation of diluted net income per share is similar to basic earnings per share except that the denominator includes potentially dilutive common stock. The potentially dilutive common stock included in the Company’s computation of diluted net income per share includes the effects of stock options, stock appreciation rights (“SARS”), and unvested restricted shares as determined using the treasury stock method. The following table sets forth the computation of basic and diluted income per share: Three Months Ended May 5, 2018 April 29, 2017 (in thousands, except per share data) Numerator: Net income $ 10,247 $ 12,771 Denominator: Basic-weighted average shares 15,156 15,009 Dilutive effect: equity awards 363 294 Diluted-weighted average shares 15,519 15,303 Basic income per share $ 0.68 $ 0.85 Diluted income per share $ 0.66 $ 0.83 Antidilutive effect: (1) 161 392 (1) Represents weighted average of stock options to purchase shares of common stock, SARS and restricted stock that were not included in computing diluted income per share because their effects were antidilutive for the respective periods. |
Equity
Equity | 3 Months Ended |
May 05, 2018 | |
Equity | 12. EQUITY The following table reflects the changes in equity: Changes in Equity (in thousands) Equity at February 3, 2018 $ 377,550 Retained earnings adjustment (1) (888 ) Comprehensive income 9,122 Share transactions under employee equity compensation plans 1,526 Equity at May 5, 2018 $ 387,310 Equity at January 30, 2017 $ 313,687 Comprehensive income 12,694 Share transactions under employee equity compensation plans 1,486 Equity at April 29, 2017 $ 327,867 (1) Due to the adoption of Accounting Standards Update No 2014-09, “Revenue from Contracts with Customers (ASC 606),” |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
May 05, 2018 | |
Accumulated Other Comprehensive Loss | 13. ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in accumulated other comprehensive loss by component, net of tax (in thousands): Foreign Unrealized Unrealized Total Balance, February 3, 2018 $ (6,488 ) $ (10 ) $ (649 ) $ (7,147 ) Other comprehensive loss (income) before reclassifications (1,676 ) 10 378 (1,288 ) Amounts reclassified from accumulated other comprehensive loss — — 163 163 Balance, May 5, 2018 $ (8,164 ) $ — $ (108 ) $ (8,272 ) Foreign Unrealized Unrealized (Loss) Gain on Total Balance, January 28, 2017 $ (9,902 ) $ (12 ) $ (181 ) $ (10,095 ) Other comprehensive loss (income) before reclassifications 279 6 (321 ) (36 ) Amounts reclassified from accumulated other comprehensive loss — — (41 ) (41 ) Balance, April 29, 2017 $ (9,623 ) $ (6 ) $ (543 ) $ (10,172 ) A summary of the impact on the condensed consolidated statement of income line items is as follows (in thousands): Three Months Ended Statement of Operations Location May 5, April 29, Forward contract loss (gain) reclassified from accumulated other comprehensive loss to income Cost of goods sold $ 163 $ (41 ) |
Derivative Financial Instrument
Derivative Financial Instrument - Cash Flow Hedges | 3 Months Ended |
May 05, 2018 | |
Derivative Financial Instrument - Cash Flow Hedges | 14. DERIVATIVE FINANCIAL INSTRUMENT – Cash Flow Hedges The Company has a risk management policy to manage foreign currency risk relating to inventory purchases by its subsidiaries that are denominated in foreign currencies. As such, the Company may employ hedging and derivative strategies to limit the effects of changes in foreign currency on its operating income and cash flows. The financial impact of these hedging instruments is primarily offset by corresponding changes in the underlying exposures being hedged. The Company achieves this by closely matching the notional amount, terms and conditions of the derivative instrument with the underlying risk being hedged. The Company does not use derivative instruments for trading or speculative purposes. For derivatives that will be accounted for as hedging instruments, the Company formally designates and documents at inception the financial instrument as a hedge of a specific underlying exposure, the risk management objective and the strategy for undertaking the hedge transaction. In addition, the Company will formally assess at least quarterly whether the financial instruments used in hedging are “highly effective” at offsetting changes in cash flows of the related underlying exposures. For purposes of assessing hedge effectiveness, the Company uses the forward method, and assesses effectiveness based on the changes in both spot and forward points of the hedging instrument. If and when a derivative is no longer expected to be “highly effective,” hedge accounting is discontinued and hedge ineffectiveness, if any, is included in current period earnings. As of May 5, 2018, there was no hedge ineffectiveness. The Company’s United Kingdom subsidiary is exposed to foreign currency risk from inventory purchases. In order to mitigate the financial risk of settlement of inventory at various prices based on movement of the U.S. dollar against the British pound, the Company entered into foreign currency forward exchange contracts (the “Hedging Instruments”). These are formally designated and “highly effective” as cash flow hedges. The Company will hedge approximately 45% of its U.S. dollar denominated purchases. All changes in the Hedging Instruments’ fair value associated with inventory purchases are recorded in equity as a component of accumulated other comprehensive income until the underlying hedged item is reclassified to earnings. The Company records the foreign currency forward exchange contracts at fair value in its consolidated balance sheets. The cash flows from derivative instruments that are designated as cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. The Company considers the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. The Company classifies derivative instrument cash flows from hedges of foreign currency risk on the settlement of inventory as operating activities. The Company’s Hedging Instruments were classified within Level 2 of the fair value hierarchy. The following table summarizes the effects, fair value and balance sheet classification of the Company’s Hedging Instruments. Derivatives Designated As Hedging Instruments Balance sheet location May 5, February 3, (in thousands) Foreign currency forward exchange contract (inventory purchases) Accounts Payable $ 108 $ 649 The following table summarizes the effect and classification of the Company’s Hedging Instruments. Three Months Ended Derivatives Designated As Hedging Instruments Statement of May 5, April 29, (in thousands) Foreign currency forward exchange contract (inventory purchases): Loss (Gain) reclassified from accumulated other comprehensive loss to income Cost of goods sold $ 163 $ (41 ) The notional amounts outstanding of foreign exchange forward contracts were $10.4 million and $6.0 million at May 5, 2018 and February 3, 2018, respectively. Such contracts expire through January 2019. Accumulated other comprehensive loss included a net deferred loss for Hedging Instruments in the amount of $0.1 million and $0.6 million at May 5, 2018 and February 3, 2018, respectively. The net deferred loss will be reclassified from accumulated other comprehensive loss to costs of goods sold during the next twelve months when the inventory is sold. |
Income Taxes
Income Taxes | 3 Months Ended |
May 05, 2018 | |
Income Taxes | 15. INCOME TAXES The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The Company’s U.S. federal income tax returns for fiscal 2011 through fiscal 2018 are open tax years. The Company’s state tax filings are subject to varying statutes of limitations. The Company’s unrecognized state tax benefits are related to open tax years from fiscal 2006 through fiscal 2018, depending on each state’s particular statute of limitation. As of May 5, 2018, the examination by the Internal Revenue Service for the Company’s, fiscal 2011 through fiscal 2015, U.S. federal tax years is still ongoing. The Company has a $1.4 million liability recorded for unrecognized tax benefits as of February 3, 2018, which includes interest and penalties of $0.3 million. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. All of the unrecognized tax benefits, if recognized, would affect the Company’s effective tax rate. During the three months ended May 5, 2018, the total amount of unrecognized tax benefits increased by approximately $33,000. The change to the total amount of the unrecognized tax benefit for the three months ended May 5, 2018 included an increase in interest and penalties of approximately $14,000. In the next twelve months, it is reasonably possible the Company could resolve the U.S. federal examination related to the fiscal 2011 through fiscal 2015 tax years. At the end of fiscal 2018, the Company maintained a $2.4 million valuation allowance against its remaining general domestic deferred tax assets and U.S. state net operating loss carryforwards. During the three months ended May 5, 2018, the related valuation allowance decreased by approximately $114,000. The establishment of valuation allowances and development of projected annual effective tax rates requires significant judgment and is impacted by various estimates. Both positive and negative evidence, as well as the objectivity and verifiability of that evidence, is considered in determining the appropriateness of recording a valuation allowance on deferred tax assets. The balance of this valuation allowance is associated with U.S. domestic operations for different state and local taxing jurisdictions where the Company anticipates that it will generate continuing tax losses. |
Stock Options, Stock Appreciati
Stock Options, Stock Appreciation Rights and Restricted Shares | 3 Months Ended |
May 05, 2018 | |
Stock Options, Stock Appreciation Rights and Restricted Shares | 16. STOCK OPTIONS, STOCK APPRECIATION RIGHTS AND RESTRICTED SHARES During the three months ended May 5, 2018, the Company granted an aggregate of 45,093 shares of restricted stock to certain key employees, which vest primarily over a three-year period, at an estimated value of $1.2 million. This value is being recorded as compensation expense on a straight-line basis over the vesting period of the restricted stock. During the three months ended May 5, 2018, the Company granted performance based restricted stock to certain key employees. Such stock generally vests 100% in April 2021, provided that each employee is still an employee of the Company on such date, and the Company has met certain performance criteria. A total of 116,328 shares of performance-based restricted stock were issued at an estimated value of $3.1 million. During the three months ended May 5, 2018, a total of 77,453 shares of restricted stock vested, of which 9,708 shares were withheld to cover the employees’ statutory income tax requirements. The estimated value of the withheld shares was $0.3 million. |
Segment Information
Segment Information | 3 Months Ended |
May 05, 2018 | |
Segment Information | 17. SEGMENT INFORMATION The Company has four reportable segments: Men’s Sportswear and Swim, Women’s Sportswear, Direct-to-Consumer States. The Direct-to-Consumer e-commerce Three Months Ended May 5, April 29, (in thousands) Revenues: Men’s Sportswear and Swim $ 199,606 $ 185,866 Women’s Sportswear 25,890 29,739 Direct-to-Consumer 19,939 18,218 Licensing 9,799 8,267 Total revenues $ 255,234 $ 242,090 Depreciation and amortization: Men’s Sportswear and Swim $ 1,839 $ 1,851 Women’s Sportswear 746 795 Direct-to-Consumer 585 766 Licensing 57 56 Total depreciation and amortization $ 3,227 $ 3,468 Operating income (loss): Men’s Sportswear and Swim $ 13,245 $ 15,515 Women’s Sportswear (3,143 ) (969 ) Direct-to-Consumer (1,397 ) (4,101 ) Licensing 6,386 5,976 Total operating income $ 15,091 $ 16,421 Total interest expense 2,009 1,956 Total net income before income taxes $ 13,082 $ 14,465 Revenues from external customers related to continuing operations in the United States and foreign countries are as follows: Three Months Ended May 5, April 29, (in thousands) United States $ 222,592 $ 212,072 International 32,642 30,018 Total revenues $ 255,234 $ 242,090 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
May 05, 2018 | |
Fair Value Measurements | 18. FAIR VALUE MEASUREMENTS Accounts receivable, accounts payable, accrued interest payable and accrued expenses Investments. available-for-sale Real estate mortgages. Senior credit facility. Senior subordinated notes payable 7 8 7 8 See footnote 14 in these notes to unaudited condensed consolidated financial statements for disclosure of the fair value and line item caption of derivative instruments recorded in the consolidated balance sheets. These estimated fair value amounts have been determined using available market information and appropriate valuation methods. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 3 Months Ended |
May 05, 2018 | |
Condensed Consolidating Financial Statements | 19. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS The Company and several of its subsidiaries (the “Guarantors”) have fully and unconditionally guaranteed the senior subordinated notes payable on a joint and several basis. These guarantees are subject to release in limited circumstances (only upon the occurrence of certain customary conditions). The following are condensed consolidating financial statements, which present, in separate columns: Perry Ellis International, Inc., (Parent Only), the Guarantors on a combined, or where appropriate, consolidated basis, and the Non-Guarantors PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED) AS OF MAY 5, 2018 (amounts in thousands) Parent Only Guarantors Non- Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ — $ 5,303 $ 45,168 $ — $ 50,471 Investment, at fair value — — 4,912 — 4,912 Accounts receivable, net — 170,276 31,542 — 201,818 Intercompany receivable, net 96,861 — — (96,861 ) — Inventories — 125,734 25,231 — 150,965 Prepaid expenses and other current assets — 8,610 1,200 — 9,810 Total current assets 96,861 309,923 108,053 (96,861 ) 417,976 Property and equipment, net — 52,430 2,995 — 55,425 Other intangible assets, net — 153,685 32,332 — 186,017 Deferred income taxes — — 541 — 541 Investment in subsidiaries 345,242 — — (345,242 ) — Other assets — 1,347 222 — 1,569 TOTAL $ 442,103 $ 517,385 $ 144,143 $ (442,103 ) $ 661,528 LIABILITIES AND EQUITY Current Liabilities: Accounts payable $ — $ 47,933 $ 4,741 $ — $ 52,674 Accrued expenses and other liabilities — 37,103 7,755 — 44,858 Accrued interest payable 350 — — — 350 Accrued income tax payable 720 624 461 — 1,805 Unearned revenues — 3,732 919 — 4,651 Intercompany payable, net — 79,579 23,528 (103,107 ) — Total current liabilities 1,070 168,971 37,404 (103,107 ) 104,338 Senior subordinated notes payable, net 49,855 — — — 49,855 Senior credit facility — 62,404 — — 62,404 Real estate mortgages — 32,495 — — 32,495 Income taxes payable 3,868 — — — 3,868 Unearned revenues and other long-term liabilities — 13,758 231 — 13,989 Deferred income taxes — 7,269 — — 7,269 Total long-term liabilities 53,723 115,926 231 — 169,880 Total liabilities 54,793 284,897 37,635 (103,107 ) 274,218 Total equity 387,310 232,488 106,508 (338,996 ) 387,310 TOTAL $ 442,103 $ 517,385 $ 144,143 $ (442,103 ) $ 661,528 PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED) AS OF FEBRUARY 3, 2018 (amounts in thousands) Parent Only Guarantors Non- Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ — $ 830 $ 34,392 $ — $ 35,222 Investment, at fair value — — 14,086 — 14,086 Accounts receivable, net — 125,534 31,329 — 156,863 Intercompany receivable, net 97,692 — — (97,692 ) — Inventories — 145,797 29,662 — 175,459 Prepaid expenses and other current assets — 7,116 1,035 — 8,151 Total current assets 97,692 279,277 110,504 (97,692 ) 389,781 Property and equipment, net — 53,614 2,550 — 56,164 Other intangible assets, net — 153,884 32,332 — 186,216 Deferred income taxes — — 411 — 411 Investment in subsidiaries 335,883 — — (335,883 ) — Other assets — 1,391 199 — 1,590 TOTAL $ 433,575 $ 488,166 $ 145,996 $ (433,575 ) $ 634,162 LIABILITIES AND EQUITY Current Liabilities: Accounts payable $ — $ 85,659 $ 13,189 $ — $ 98,848 Accrued expenses and other liabilities — 27,621 8,147 — 35,768 Accrued interest payable 1,334 — — — 1,334 Income taxes payable 716 624 126 — 1,466 Unearned revenues — 2,372 535 — 2,907 Intercompany payable, net — 83,376 18,886 (102,262 ) — Total current liabilities 2,050 199,652 40,883 (102,262 ) 140,323 Senior subordinated notes payable, net 49,818 — — — 49,818 Senior credit facility — 11,154 — — 11,154 Real estate mortgages — 32,721 — — 32,721 Income taxes payable 4,157 — — — 4,157 Unearned revenues and other long-term liabilities — 13,277 247 — 13,524 Deferred income taxes — 4,915 — — 4,915 Total long-term liabilities 53,975 62,067 247 — 116,289 Total liabilities 56,025 261,719 41,130 (102,262 ) 256,612 Total equity 377,550 226,447 104,866 (331,313 ) 377,550 TOTAL $ 433,575 $ 488,166 $ 145,996 $ (433,575 ) $ 634,162 PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED MAY 5, 2018 (amounts in thousands) Parent Only Guarantors Non- Eliminations Consolidated Revenues: Net sales $ — $ 216,215 $ 29,220 $ — $ 245,435 Royalty income — 6,376 3,423 — 9,799 Total revenues — 222,591 32,643 — 255,234 Cost of sales — 144,261 17,106 — 161,367 Gross profit — 78,330 15,537 — 93,867 Operating expenses: Selling, general and administrative expenses — 64,247 11,302 — 75,549 Depreciation and amortization — 2,912 315 — 3,227 Total operating expenses — 67,159 11,617 — 78,776 Operating income — 11,171 3,920 — 15,091 Interest expense — 2,107 (98 ) — 2,009 Net income before income taxes — 9,064 4,018 — 13,082 Income tax provision — 2,326 509 — 2,835 Equity in earnings of subsidiaries, net 10,247 — — (10,247 ) — Net income 10,247 6,738 3,509 (10,247 ) 10,247 Other comprehensive loss (1,125 ) — (1,125 ) 1,125 (1,125 ) Comprehensive income $ 9,122 $ 6,738 $ 2,384 $ (9,122 ) $ 9,122 PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED APRIL 29, 2017 (amounts in thousands) Parent Only Guarantors Non- Eliminations Consolidated Revenues: Net sales $ — $ 206,686 $ 27,137 $ — $ 233,823 Royalty income — 5,386 2,881 — 8,267 Total revenues — 212,072 30,018 — 242,090 Cost of sales — 133,927 17,075 — 151,002 Gross profit — 78,145 12,943 — 91,088 Operating expenses: Selling, general and administrative expenses — 61,599 9,600 — 71,199 Depreciation and amortization — 3,210 258 — 3,468 Total operating expenses — 64,809 9,858 — 74,667 Operating income — 13,336 3,085 — 16,421 Interest expense — 1,989 (33 ) — 1,956 Net income before income taxes — 11,347 3,118 — 14,465 Income tax provision — 1,325 369 — 1,694 Equity in earnings of subsidiaries, net 12,771 — — (12,771 ) — Net income 12,771 10,022 2,749 (12,771 ) 12,771 Other comprehensive loss (77 ) — (77 ) 77 (77 ) Comprehensive income $ 12,694 $ 10,022 $ 2,672 $ (12,694 ) $ 12,694 PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED) FOR THE THREE MONTHS ENDED MAY 5, 2018 (amounts in thousands) Parent Only Guarantors Non- Eliminations Consolidated NET CASH USED IN OPERATING ACTIVITIES: $ (1,000 ) $ (40,688 ) $ (1,390 ) $ — $ (43,078 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment — (812 ) (881 ) — (1,693 ) Proceeds from investments maturities — — 9,184 — 9,184 Intercompany transactions 913 — — (913 ) — Net cash provided by (used in) investing activities 913 (812 ) 8,303 (913 ) 7,491 CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings from senior credit facility — 106,959 — — 106,959 Payments on senior credit facility — (55,709 ) — — (55,709 ) Payments on real estate mortgages — (225 ) — — (225 ) Payments for employee taxes on shares withheld — (259 ) — — (259 ) Payments on capital leases — (17 ) — — (17 ) Proceeds from exercise of stock options 101 — — — 101 Intercompany transactions — (4,776 ) 3,877 899 — Net cash (used in) provided by financing activities 101 45,973 3,877 899 50,850 Effect of exchange rate changes on cash and cash equivalents (14 ) — (14 ) 14 (14 ) NET INCREASE IN CASH AND CASH EQUIVALENTS — 4,473 10,776 — 15,249 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD — 830 34,392 — 35,222 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ — $ 5,303 $ 45,168 $ — $ 50,471 PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED) FOR THE THREE MONTHS ENDED APRIL 29, 2017 (amounts in thousands) Parent Only Guarantors Non- Eliminations Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: $ 445 $ (33,893 ) $ (4,319 ) $ — $ (37,767 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment — (1,578 ) (323 ) — (1,901 ) Purchase of investments — — (10,256 ) — (10,256 ) Proceeds from investments maturities — — 4,655 — 4,655 Intercompany transactions (88 ) — — 88 — Net cash used in investing activities (88 ) (1,578 ) (5,924 ) 88 (7,502 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings from senior credit facility — 98,764 — — 98,764 Payments on senior credit facility — (57,140 ) — — (57,140 ) Payments on real estate mortgages — (220 ) — — (220 ) Payments on capital leases — (69 ) — — (69 ) Proceeds from exercise of stock options 23 — — — 23 Intercompany transactions — (4,478 ) 4,946 (468 ) — Net cash provided by financing activities 23 36,857 4,946 (468 ) 41,358 Effect of exchange rate changes on cash and cash equivalents (380 ) — (380 ) 380 (380 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS — 1,386 (5,677 ) — (4,291 ) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD — 2,578 28,117 — 30,695 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ — $ 3,964 $ 22,440 $ — $ 26,404 |
Subsequent Events
Subsequent Events | 3 Months Ended |
May 05, 2018 | |
Subsequent Events | 20. SUBSEQUENT EVENTS On May 29, 2018, the Company completed the redemption of the remaining $50 million of its outstanding 7.875% Senior Subordinated Notes due in 2019 (the “Notes”). The total redemption price for the Notes was $50.6 million, which amount includes 100.00% of the principal amount of the Notes as well as accrued and unpaid interest to, but not including, the May 29, 2018 redemption date. Following the redemption by the Company of the Notes, none of the Notes remain outstanding. The Company paid the redemption price for the Notes with repatriated funds and funds from its senior credit facility. On February 6, 2018, the Company received a non-binding |
Recent Accounting Pronounceme27
Recent Accounting Pronouncements (Tables) | 3 Months Ended |
May 05, 2018 | |
Cumulative Effects and Impact of Adoption Changes Made to Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Income as a Result of the Adoption of ASC 606 | The cumulative effects of the changes made to the condensed consolidated balance sheet at February 4, 2018, as a result of the adoption of ASC 606 were as follows: Balance at Adjustments Balance at February 3, due to ASC February 4, 2018 606 2018 (in thousands) Accounts receivable, net 156,863 13,017 169,880 Prepaid expenses and other current assets 8,151 1,420 9,571 Deferred income tax 411 43 454 Accrued expenses and other liabilities 35,768 14,294 50,062 Unearned revenues 2,907 1,313 4,220 Deferred income taxes 4,915 (239 ) 4,676 Retained earnings 232,977 (888 ) 232,089 |
ASU 2014-09 | |
Cumulative Effects and Impact of Adoption Changes Made to Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Income as a Result of the Adoption of ASC 606 | The impact of adoption of ASC 606 on the condensed consolidated balance sheet at May 5, 2018 and condensed consolidated statement of income for the three months ended May 5, 2018 was as follows: May 5, 2018 Excluding Adjustments due to ASC As Reported 606 (1) As Adjusted (in thousands) Accounts receivable, net 201,818 (14,757 ) 187,061 Prepaid expenses and other current assets 9,810 (1,953 ) 7,857 Accrued expenses and other liabilities 44,858 (16,743 ) 28,115 Accrued income tax payable 1,805 (60 ) 1,745 Unearned revenues 4,651 (245 ) 4,406 Retained earnings 242,336 338 242,674 Three Months Ended May 5, 2018 Excluding Adjustments due to ASC As Reported 606 (1) As Adjusted (in thousands) Royalty income 9,799 (1,226 ) 8,573 Total revenues 255,234 (1,226 ) 254,008 Gross profit 93,867 (1,226 ) 92,641 Selling, general and administrative expenses 75,549 (1,504 ) 74,045 Total operating expenses 78,776 (1,504 ) 77,272 Operating income 15,091 (278 ) 14,813 Income tax provision 2,835 (60 ) 2,775 Net income 10,247 (338 ) 9,909 (1) Refer to footnote 2: Accounting Standards Update, No. 2014-09, |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
May 05, 2018 | |
Components of Accounts Receivable | Accounts receivable consisted of the following as of: May 5, February 3, 2018 2018 (in thousands) Trade accounts $ 196,930 $ 163,872 Royalties 6,540 7,107 Other receivables 912 902 Total 204,382 171,881 Less: Allowances (1) (2,564 ) (15,018 ) Total $ 201,818 $ 156,863 (1) Due to the adoption of Accounting Standards Update No 2014-09, “Revenue from Contracts with Customers (ASC 606),” |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
May 05, 2018 | |
Summary of Inventories | Inventories consisted of the following as of: May 5, February 3, 2018 2018 (in thousands) Finished goods $ 150,965 $ 175,459 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
May 05, 2018 | |
Investments | Investments consisted of the following as of May 5, 2018: Gross Gross Estimated Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Marketable securities $ 905 $ — $ — $ 905 Certificates of deposit 4,011 — (4 ) 4,007 Total investments $ 4,916 $ — $ (4 ) $ 4,912 Investments consisted of the following as of February 3, 2018: Gross Gross Estimated Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Marketable securities $ 6,655 $ — $ (5 ) $ 6,650 Certificates of deposit 7,441 — (5 ) 7,436 Total investments $ 14,096 $ — $ (10 ) $ 14,086 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
May 05, 2018 | |
Summary of Property and Equipment | Property and equipment consisted of the following as of: May 5, February 3, 2018 2018 (in thousands) Furniture, fixtures and equipment $ 98,158 $ 97,414 Buildings and building improvements 22,288 22,341 Vehicles 537 537 Leasehold improvements 47,088 47,765 Land 9,431 9,430 Total 177,502 177,487 Less: accumulated depreciation and amortization (122,077 ) (121,323 ) Total $ 55,425 $ 56,164 |
Summary of Property and Equipment Includes Assets Held under Capital Leases | The above table of property and equipment includes assets held under capital leases as of: May 5, February 3, 2018 2018 (in thousands) Furniture, fixtures and equipment $ 703 $ 810 Less: accumulated depreciation and amortization (18 ) (722 ) Total $ 685 $ 88 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 3 Months Ended |
May 05, 2018 | |
Summary of Other Intangible Assets | Other intangible assets represent customer lists as of: May 5, February 3, 2018 2018 (in thousands) Customer lists $ 8,450 $ 8,450 Less: accumulated amortization (6,578 ) (6,380 ) Total $ 1,872 $ 2,070 |
Schedule of Estimated Amortization Expense for Future Periods | Assuming no impairment, the table sets forth the estimated amortization expense for future periods based on recorded amounts as of February 3, 2018: (in thousands) 2019 $ 793 2020 $ 734 2021 $ 543 |
Letter of Credit Facilities (Ta
Letter of Credit Facilities (Tables) | 3 Months Ended |
May 05, 2018 | |
Borrowings and Availability under Letter of Credit Facilities | Borrowings and availability under letter of credit facilities consisted of the following as of: May 5, February 3, (in thousands) Total letter of credit facilities $ 30,000 $ 30,000 Outstanding letters of credit (10,268 ) (10,268 ) Total credit available $ 19,732 $ 19,732 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
May 05, 2018 | |
Computation of Basic and Diluted Income (Loss) Per Share | The following table sets forth the computation of basic and diluted income per share: Three Months Ended May 5, 2018 April 29, 2017 (in thousands, except per share data) Numerator: Net income $ 10,247 $ 12,771 Denominator: Basic-weighted average shares 15,156 15,009 Dilutive effect: equity awards 363 294 Diluted-weighted average shares 15,519 15,303 Basic income per share $ 0.68 $ 0.85 Diluted income per share $ 0.66 $ 0.83 Antidilutive effect: (1) 161 392 (1) Represents weighted average of stock options to purchase shares of common stock, SARS and restricted stock that were not included in computing diluted income per share because their effects were antidilutive for the respective periods. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
May 05, 2018 | |
Changes in Equity | The following table reflects the changes in equity: Changes in Equity (in thousands) Equity at February 3, 2018 $ 377,550 Retained earnings adjustment (1) (888 ) Comprehensive income 9,122 Share transactions under employee equity compensation plans 1,526 Equity at May 5, 2018 $ 387,310 Equity at January 30, 2017 $ 313,687 Comprehensive income 12,694 Share transactions under employee equity compensation plans 1,486 Equity at April 29, 2017 $ 327,867 (1) Due to the adoption of Accounting Standards Update No 2014-09, “Revenue from Contracts with Customers (ASC 606),” |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
May 05, 2018 | |
Changes in Accumulated Other Comprehensive Loss by Component Net of Tax | Changes in accumulated other comprehensive loss by component, net of tax (in thousands): Foreign Unrealized Unrealized Total Balance, February 3, 2018 $ (6,488 ) $ (10 ) $ (649 ) $ (7,147 ) Other comprehensive loss (income) before reclassifications (1,676 ) 10 378 (1,288 ) Amounts reclassified from accumulated other comprehensive loss — — 163 163 Balance, May 5, 2018 $ (8,164 ) $ — $ (108 ) $ (8,272 ) Foreign Unrealized Unrealized (Loss) Gain on Total Balance, January 28, 2017 $ (9,902 ) $ (12 ) $ (181 ) $ (10,095 ) Other comprehensive loss (income) before reclassifications 279 6 (321 ) (36 ) Amounts reclassified from accumulated other comprehensive loss — — (41 ) (41 ) Balance, April 29, 2017 $ (9,623 ) $ (6 ) $ (543 ) $ (10,172 ) |
Summary of Impact on Condensed Consolidated Statements of Operations Line Items | A summary of the impact on the condensed consolidated statement of income line items is as follows (in thousands): Three Months Ended Statement of Operations Location May 5, April 29, Forward contract loss (gain) reclassified from accumulated other comprehensive loss to income Cost of goods sold $ 163 $ (41 ) |
Derivative Financial Instrume37
Derivative Financial Instrument - Cash Flow Hedges (Tables) - Designated as Hedging Instrument | 3 Months Ended |
May 05, 2018 | |
Fair Value and Classification of Hedging Instruments in Balance Sheet and Statement of Operations | The Company’s Hedging Instruments were classified within Level 2 of the fair value hierarchy. The following table summarizes the effects, fair value and balance sheet classification of the Company’s Hedging Instruments. Derivatives Designated As Hedging Instruments Balance sheet location May 5, February 3, (in thousands) Foreign currency forward exchange contract (inventory purchases) Accounts Payable $ 108 $ 649 |
Summary of Effect and Classification of Hedging Instruments | The following table summarizes the effect and classification of the Company’s Hedging Instruments. Three Months Ended Derivatives Designated As Hedging Instruments Statement of May 5, April 29, (in thousands) Foreign currency forward exchange contract (inventory purchases): Loss (Gain) reclassified from accumulated other comprehensive loss to income Cost of goods sold $ 163 $ (41 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
May 05, 2018 | |
Segment Information | The Company allocates certain corporate selling, general and administrative expenses based primarily on the revenues generated by the segments. Three Months Ended May 5, April 29, (in thousands) Revenues: Men’s Sportswear and Swim $ 199,606 $ 185,866 Women’s Sportswear 25,890 29,739 Direct-to-Consumer 19,939 18,218 Licensing 9,799 8,267 Total revenues $ 255,234 $ 242,090 Depreciation and amortization: Men’s Sportswear and Swim $ 1,839 $ 1,851 Women’s Sportswear 746 795 Direct-to-Consumer 585 766 Licensing 57 56 Total depreciation and amortization $ 3,227 $ 3,468 Operating income (loss): Men’s Sportswear and Swim $ 13,245 $ 15,515 Women’s Sportswear (3,143 ) (969 ) Direct-to-Consumer (1,397 ) (4,101 ) Licensing 6,386 5,976 Total operating income $ 15,091 $ 16,421 Total interest expense 2,009 1,956 Total net income before income taxes $ 13,082 $ 14,465 |
Revenues From External Customers Related To Continuing Operations In United States and Foreign Countries | Revenues from external customers related to continuing operations in the United States and foreign countries are as follows: Three Months Ended May 5, April 29, (in thousands) United States $ 222,592 $ 212,072 International 32,642 30,018 Total revenues $ 255,234 $ 242,090 |
Condensed Consolidating Finan39
Condensed Consolidating Financial Statements (Tables) | 3 Months Ended |
May 05, 2018 | |
Condensed Consolidating Balance Sheet | PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED) AS OF MAY 5, 2018 (amounts in thousands) Parent Only Guarantors Non- Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ — $ 5,303 $ 45,168 $ — $ 50,471 Investment, at fair value — — 4,912 — 4,912 Accounts receivable, net — 170,276 31,542 — 201,818 Intercompany receivable, net 96,861 — — (96,861 ) — Inventories — 125,734 25,231 — 150,965 Prepaid expenses and other current assets — 8,610 1,200 — 9,810 Total current assets 96,861 309,923 108,053 (96,861 ) 417,976 Property and equipment, net — 52,430 2,995 — 55,425 Other intangible assets, net — 153,685 32,332 — 186,017 Deferred income taxes — — 541 — 541 Investment in subsidiaries 345,242 — — (345,242 ) — Other assets — 1,347 222 — 1,569 TOTAL $ 442,103 $ 517,385 $ 144,143 $ (442,103 ) $ 661,528 LIABILITIES AND EQUITY Current Liabilities: Accounts payable $ — $ 47,933 $ 4,741 $ — $ 52,674 Accrued expenses and other liabilities — 37,103 7,755 — 44,858 Accrued interest payable 350 — — — 350 Accrued income tax payable 720 624 461 — 1,805 Unearned revenues — 3,732 919 — 4,651 Intercompany payable, net — 79,579 23,528 (103,107 ) — Total current liabilities 1,070 168,971 37,404 (103,107 ) 104,338 Senior subordinated notes payable, net 49,855 — — — 49,855 Senior credit facility — 62,404 — — 62,404 Real estate mortgages — 32,495 — — 32,495 Income taxes payable 3,868 — — — 3,868 Unearned revenues and other long-term liabilities — 13,758 231 — 13,989 Deferred income taxes — 7,269 — — 7,269 Total long-term liabilities 53,723 115,926 231 — 169,880 Total liabilities 54,793 284,897 37,635 (103,107 ) 274,218 Total equity 387,310 232,488 106,508 (338,996 ) 387,310 TOTAL $ 442,103 $ 517,385 $ 144,143 $ (442,103 ) $ 661,528 PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED) AS OF FEBRUARY 3, 2018 (amounts in thousands) Parent Only Guarantors Non- Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ — $ 830 $ 34,392 $ — $ 35,222 Investment, at fair value — — 14,086 — 14,086 Accounts receivable, net — 125,534 31,329 — 156,863 Intercompany receivable, net 97,692 — — (97,692 ) — Inventories — 145,797 29,662 — 175,459 Prepaid expenses and other current assets — 7,116 1,035 — 8,151 Total current assets 97,692 279,277 110,504 (97,692 ) 389,781 Property and equipment, net — 53,614 2,550 — 56,164 Other intangible assets, net — 153,884 32,332 — 186,216 Deferred income taxes — — 411 — 411 Investment in subsidiaries 335,883 — — (335,883 ) — Other assets — 1,391 199 — 1,590 TOTAL $ 433,575 $ 488,166 $ 145,996 $ (433,575 ) $ 634,162 LIABILITIES AND EQUITY Current Liabilities: Accounts payable $ — $ 85,659 $ 13,189 $ — $ 98,848 Accrued expenses and other liabilities — 27,621 8,147 — 35,768 Accrued interest payable 1,334 — — — 1,334 Income taxes payable 716 624 126 — 1,466 Unearned revenues — 2,372 535 — 2,907 Intercompany payable, net — 83,376 18,886 (102,262 ) — Total current liabilities 2,050 199,652 40,883 (102,262 ) 140,323 Senior subordinated notes payable, net 49,818 — — — 49,818 Senior credit facility — 11,154 — — 11,154 Real estate mortgages — 32,721 — — 32,721 Income taxes payable 4,157 — — — 4,157 Unearned revenues and other long-term liabilities — 13,277 247 — 13,524 Deferred income taxes — 4,915 — — 4,915 Total long-term liabilities 53,975 62,067 247 — 116,289 Total liabilities 56,025 261,719 41,130 (102,262 ) 256,612 Total equity 377,550 226,447 104,866 (331,313 ) 377,550 TOTAL $ 433,575 $ 488,166 $ 145,996 $ (433,575 ) $ 634,162 |
Condensed Consolidating Statement of Comprehensive Income (Loss) | PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED MAY 5, 2018 (amounts in thousands) Parent Only Guarantors Non- Eliminations Consolidated Revenues: Net sales $ — $ 216,215 $ 29,220 $ — $ 245,435 Royalty income — 6,376 3,423 — 9,799 Total revenues — 222,591 32,643 — 255,234 Cost of sales — 144,261 17,106 — 161,367 Gross profit — 78,330 15,537 — 93,867 Operating expenses: Selling, general and administrative expenses — 64,247 11,302 — 75,549 Depreciation and amortization — 2,912 315 — 3,227 Total operating expenses — 67,159 11,617 — 78,776 Operating income — 11,171 3,920 — 15,091 Interest expense — 2,107 (98 ) — 2,009 Net income before income taxes — 9,064 4,018 — 13,082 Income tax provision — 2,326 509 — 2,835 Equity in earnings of subsidiaries, net 10,247 — — (10,247 ) — Net income 10,247 6,738 3,509 (10,247 ) 10,247 Other comprehensive loss (1,125 ) — (1,125 ) 1,125 (1,125 ) Comprehensive income $ 9,122 $ 6,738 $ 2,384 $ (9,122 ) $ 9,122 PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED APRIL 29, 2017 (amounts in thousands) Parent Only Guarantors Non- Eliminations Consolidated Revenues: Net sales $ — $ 206,686 $ 27,137 $ — $ 233,823 Royalty income — 5,386 2,881 — 8,267 Total revenues — 212,072 30,018 — 242,090 Cost of sales — 133,927 17,075 — 151,002 Gross profit — 78,145 12,943 — 91,088 Operating expenses: Selling, general and administrative expenses — 61,599 9,600 — 71,199 Depreciation and amortization — 3,210 258 — 3,468 Total operating expenses — 64,809 9,858 — 74,667 Operating income — 13,336 3,085 — 16,421 Interest expense — 1,989 (33 ) — 1,956 Net income before income taxes — 11,347 3,118 — 14,465 Income tax provision — 1,325 369 — 1,694 Equity in earnings of subsidiaries, net 12,771 — — (12,771 ) — Net income 12,771 10,022 2,749 (12,771 ) 12,771 Other comprehensive loss (77 ) — (77 ) 77 (77 ) Comprehensive income $ 12,694 $ 10,022 $ 2,672 $ (12,694 ) $ 12,694 |
Condensed Consolidating Statement of Cash Flows | PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED) FOR THE THREE MONTHS ENDED MAY 5, 2018 (amounts in thousands) Parent Only Guarantors Non- Eliminations Consolidated NET CASH USED IN OPERATING ACTIVITIES: $ (1,000 ) $ (40,688 ) $ (1,390 ) $ — $ (43,078 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment — (812 ) (881 ) — (1,693 ) Proceeds from investments maturities — — 9,184 — 9,184 Intercompany transactions 913 — — (913 ) — Net cash provided by (used in) investing activities 913 (812 ) 8,303 (913 ) 7,491 CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings from senior credit facility — 106,959 — — 106,959 Payments on senior credit facility — (55,709 ) — — (55,709 ) Payments on real estate mortgages — (225 ) — — (225 ) Payments for employee taxes on shares withheld — (259 ) — — (259 ) Payments on capital leases — (17 ) — — (17 ) Proceeds from exercise of stock options 101 — — — 101 Intercompany transactions — (4,776 ) 3,877 899 — Net cash (used in) provided by financing activities 101 45,973 3,877 899 50,850 Effect of exchange rate changes on cash and cash equivalents (14 ) — (14 ) 14 (14 ) NET INCREASE IN CASH AND CASH EQUIVALENTS — 4,473 10,776 — 15,249 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD — 830 34,392 — 35,222 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ — $ 5,303 $ 45,168 $ — $ 50,471 PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED) FOR THE THREE MONTHS ENDED APRIL 29, 2017 (amounts in thousands) Parent Only Guarantors Non- Eliminations Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: $ 445 $ (33,893 ) $ (4,319 ) $ — $ (37,767 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment — (1,578 ) (323 ) — (1,901 ) Purchase of investments — — (10,256 ) — (10,256 ) Proceeds from investments maturities — — 4,655 — 4,655 Intercompany transactions (88 ) — — 88 — Net cash used in investing activities (88 ) (1,578 ) (5,924 ) 88 (7,502 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings from senior credit facility — 98,764 — — 98,764 Payments on senior credit facility — (57,140 ) — — (57,140 ) Payments on real estate mortgages — (220 ) — — (220 ) Payments on capital leases — (69 ) — — (69 ) Proceeds from exercise of stock options 23 — — — 23 Intercompany transactions — (4,478 ) 4,946 (468 ) — Net cash provided by financing activities 23 36,857 4,946 (468 ) 41,358 Effect of exchange rate changes on cash and cash equivalents (380 ) — (380 ) 380 (380 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS — 1,386 (5,677 ) — (4,291 ) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD — 2,578 28,117 — 30,695 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ — $ 3,964 $ 22,440 $ — $ 26,404 |
Recent Accounting Pronounceme40
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) | Feb. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect reduction to retained earnings , net of tax | [1] | $ (888,000) | ||
Deferred tax expense recorded in connection with remeasurement of certain deferred tax assets and liabilities | 3,900,000 | |||
Current tax expense recorded in connection with transition tax provisional amount | 5,800,000 | |||
Estimate for the impact of GILTI as an increase to its tax expense | 500,000 | |||
ASU 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect reduction to retained earnings , net of tax | $ 900,000 | $ 900,000 | $ 0 | |
[1] | Due to the adoption of Accounting Standards Update No 2014-09, "Revenue from Contracts with Customers (ASC 606)," the opening balance of retained earnings has been reduced by $0.9 million for fiscal year 2018. There was no adjustment made to retained earnings for fiscal 2019. See footnote 2. |
Cumulative Effects of Changes M
Cumulative Effects of Changes Made to Condensed Consolidated Balance Sheet as a Result of the Adoption of ASC 606 (Detail) - USD ($) $ in Thousands | May 05, 2018 | Feb. 04, 2018 | Feb. 03, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable, net | $ 201,818 | $ 156,863 | |
Prepaid expenses and other current assets | 9,810 | 8,151 | |
Deferred income tax | 541 | 411 | |
Accrued expenses and other liabilities | 44,858 | 35,768 | |
Unearned revenues | 4,651 | 2,907 | |
Deferred income taxes | 7,269 | 4,915 | |
Retained earnings | 242,336 | $ 232,977 | |
ASU 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable, net | $ 169,880 | ||
Prepaid expenses and other current assets | 9,571 | ||
Deferred income tax | 454 | ||
Accrued expenses and other liabilities | 50,062 | ||
Unearned revenues | 4,220 | ||
Deferred income taxes | 4,676 | ||
Retained earnings | 232,089 | ||
ASU 2014-09 | Adjustments due to Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable, net | (14,757) | 13,017 | |
Prepaid expenses and other current assets | (1,953) | 1,420 | |
Deferred income tax | 43 | ||
Accrued expenses and other liabilities | (16,743) | 14,294 | |
Unearned revenues | (245) | 1,313 | |
Deferred income taxes | (239) | ||
Retained earnings | $ 338 | $ (888) |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
May 05, 2018USD ($)SegmentContract | Feb. 03, 2018USD ($) | |
Revenue From Contract With Customers [Line Items] | ||
Number of reportable segments | Segment | 4 | |
Unearned revenues | $ 4,651 | $ 2,907 |
Revenue recognized | $ 2,800 | |
Number of contracts | Contract | 163 | |
Contract performance obligation expiration month | 2026-12 | |
Unsatisfied performance obligations | $ 170,500 | |
Performance obligations expected to be realized in fiscal 2019 | $ 39,500 |
Impact of Adoption of ASC 606 o
Impact of Adoption of ASC 606 on the Condensed Consolidated Balance (Detail) - USD ($) $ in Thousands | May 05, 2018 | Feb. 04, 2018 | Feb. 03, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable, net | $ 201,818 | $ 156,863 | |
Prepaid expenses and other current assets | 9,810 | 8,151 | |
Accrued expenses and other liabilities | 44,858 | 35,768 | |
Accrued income tax payable | 1,805 | 1,466 | |
Unearned revenues | 4,651 | 2,907 | |
Retained earnings | 242,336 | $ 232,977 | |
ASU 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable, net | $ 169,880 | ||
Prepaid expenses and other current assets | 9,571 | ||
Accrued expenses and other liabilities | 50,062 | ||
Unearned revenues | 4,220 | ||
Retained earnings | 232,089 | ||
ASU 2014-09 | Adjustments due to Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable, net | (14,757) | 13,017 | |
Prepaid expenses and other current assets | (1,953) | 1,420 | |
Accrued expenses and other liabilities | (16,743) | 14,294 | |
Accrued income tax payable | (60) | ||
Unearned revenues | (245) | 1,313 | |
Retained earnings | 338 | $ (888) | |
ASU 2014-09 | As Adjusted | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable, net | 187,061 | ||
Prepaid expenses and other current assets | 7,857 | ||
Accrued expenses and other liabilities | 28,115 | ||
Accrued income tax payable | 1,745 | ||
Unearned revenues | 4,406 | ||
Retained earnings | $ 242,674 |
Impact of Adoption of ASC 60644
Impact of Adoption of ASC 606 on the Condensed Consolidated Statement of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Royalty income | $ 9,799 | $ 8,267 |
Total revenues | 255,234 | 242,090 |
Gross profit | 93,867 | 91,088 |
Selling, general and administrative expenses | 75,549 | 71,199 |
Total operating expenses | 78,776 | 74,667 |
Operating income | 15,091 | 16,421 |
Income tax provision | 2,835 | 1,694 |
Net income | 10,247 | $ 12,771 |
ASU 2014-09 | Adjustments due to Topic 606 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Royalty income | (1,226) | |
Total revenues | (1,226) | |
Gross profit | (1,226) | |
Selling, general and administrative expenses | (1,504) | |
Total operating expenses | (1,504) | |
Operating income | (278) | |
Income tax provision | (60) | |
Net income | (338) | |
ASU 2014-09 | As Adjusted | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Royalty income | 8,573 | |
Total revenues | 254,008 | |
Gross profit | 92,641 | |
Selling, general and administrative expenses | 74,045 | |
Total operating expenses | 77,272 | |
Operating income | 14,813 | |
Income tax provision | 2,775 | |
Net income | $ 9,909 |
Components of Accounts Receivab
Components of Accounts Receivable (Detail) - USD ($) $ in Thousands | May 05, 2018 | Feb. 03, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | $ 204,382 | $ 171,881 | |
Less: Allowances | [1] | (2,564) | (15,018) |
Total | 201,818 | 156,863 | |
Trade Accounts Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 196,930 | 163,872 | |
Royalties Receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 6,540 | 7,107 | |
Other Receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | $ 912 | $ 902 | |
[1] | (1) Due to the adoption of Accounting Standards Update No 2014-09, "Revenue from Contracts with Customers (ASC 606)," sales allowances and reserves for fiscal 2019 have been reclassified as other current liabilities. There was no reclassification made to sales allowances and reserves for fiscal 2018. Refer to footnote 2. |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | May 05, 2018 | Feb. 03, 2018 |
Inventory [Line Items] | ||
Finished goods | $ 150,965 | $ 175,459 |
Investments (Detail)
Investments (Detail) - USD ($) $ in Thousands | May 05, 2018 | Feb. 03, 2018 |
Schedule of Investments [Line Items] | ||
Cost | $ 4,916 | $ 14,096 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (4) | (10) |
Estimated Fair Value | 4,912 | 14,086 |
Marketable securities | ||
Schedule of Investments [Line Items] | ||
Cost | 905 | 6,655 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (5) | |
Estimated Fair Value | 905 | 6,650 |
Certificates of Deposit | ||
Schedule of Investments [Line Items] | ||
Cost | 4,011 | 7,441 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (4) | (5) |
Estimated Fair Value | $ 4,007 | $ 7,436 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | May 05, 2018 | Feb. 03, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 177,502 | $ 177,487 |
Less: accumulated depreciation and amortization | (122,077) | (121,323) |
Total | 55,425 | 56,164 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 98,158 | 97,414 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 22,288 | 22,341 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Total | 537 | 537 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 47,088 | 47,765 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 9,431 | $ 9,430 |
Summary of Property and Equipme
Summary of Property and Equipment Includes Assets Held under Capital Leases (Detail) - USD ($) $ in Thousands | May 05, 2018 | Feb. 03, 2018 |
Property, Plant and Equipment [Line Items] | ||
Furniture, fixtures and equipment | $ 703 | $ 810 |
Less: accumulated depreciation and amortization | (18) | (722) |
Total | $ 685 | $ 88 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expense related to property and equipment | $ 3.1 | $ 3.3 |
Other Intangible Assets - Addit
Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
May 05, 2018 | Apr. 29, 2017 | Feb. 03, 2018 | |
Intangible Assets [Line Items] | |||
Intangible assets amortized estimated useful lives | 10 years | ||
Customer Lists | |||
Intangible Assets [Line Items] | |||
Amortization expense | $ 0.2 | $ 0.2 | |
Trademarks | |||
Intangible Assets [Line Items] | |||
Trademarks included in other intangible assets, net | $ 184.1 | $ 184.1 |
Intangible Assets (Detail)
Intangible Assets (Detail) - Customer Lists - USD ($) $ in Thousands | May 05, 2018 | Feb. 03, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Customer lists | $ 8,450 | $ 8,450 |
Less: accumulated amortization | (6,578) | (6,380) |
Total | $ 1,872 | $ 2,070 |
Schedule of Estimated Amortizat
Schedule of Estimated Amortization Expense for Future Periods (Detail) $ in Thousands | Feb. 03, 2018USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Estimated amortization expense 2019 | $ 793 |
Estimated amortization expense 2020 | 734 |
Estimated amortization expense 2021 | $ 543 |
Letter of Credit Facilities (De
Letter of Credit Facilities (Detail) - Letter of Credit - USD ($) | May 05, 2018 | Feb. 03, 2018 |
Line of Credit Facility [Line Items] | ||
Total letter of credit facilities | $ 30,000,000 | $ 30,000,000 |
Outstanding letters of credit | (10,268,000) | (10,268,000) |
Total credit available | $ 19,732,000 | $ 19,732,000 |
Advertising and Related Costs -
Advertising and Related Costs - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Advertising Costs [Line Items] | ||
Advertising and related costs | $ 5.7 | $ 4 |
Computation of Basic and Dilute
Computation of Basic and Diluted Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
May 05, 2018 | Apr. 29, 2017 | ||
Numerator: | |||
Net income | $ 10,247 | $ 12,771 | |
Denominator: | |||
Basic - weighted average shares | 15,156 | 15,009 | |
Dilutive effect: equity awards | 363 | 294 | |
Diluted - weighted average shares | 15,519 | 15,303 | |
Basic income per share | $ 0.68 | $ 0.85 | |
Diluted income per share | $ 0.66 | $ 0.83 | |
Antidilutive effect | [1] | 161 | 392 |
[1] | Represents weighted average of stock options to purchase shares of common stock, SARS and restricted stock that were not included in computing diluted income per share because their effects were antidilutive for the respective periods. |
Equity (Detail)
Equity (Detail) - USD ($) $ in Thousands | Feb. 04, 2018 | May 05, 2018 | Apr. 29, 2017 | Feb. 03, 2018 | |
Equity [Line Items] | |||||
Beginning Balance | $ 377,550 | $ 377,550 | $ 313,687 | $ 313,687 | |
Retained earnings adjustment | [1] | (888) | |||
Comprehensive income | 9,122 | 12,694 | |||
Share transactions under employee equity compensation plans | 1,526 | 1,486 | |||
Ending Balance | $ 377,550 | $ 387,310 | $ 327,867 | $ 377,550 | |
[1] | Due to the adoption of Accounting Standards Update No 2014-09, "Revenue from Contracts with Customers (ASC 606)," the opening balance of retained earnings has been reduced by $0.9 million for fiscal year 2018. There was no adjustment made to retained earnings for fiscal 2019. See footnote 2. |
Equity (Parenthetical) (Detail)
Equity (Parenthetical) (Detail) - USD ($) | Feb. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | |
Equity [Line Items] | ||||
Cumulative effect reduction to retained earnings , net of tax | [1] | $ (888,000) | ||
ASU 2014-09 | ||||
Equity [Line Items] | ||||
Cumulative effect reduction to retained earnings , net of tax | $ 900,000 | $ 900,000 | $ 0 | |
[1] | Due to the adoption of Accounting Standards Update No 2014-09, "Revenue from Contracts with Customers (ASC 606)," the opening balance of retained earnings has been reduced by $0.9 million for fiscal year 2018. There was no adjustment made to retained earnings for fiscal 2019. See footnote 2. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ 377,550 | $ 313,687 |
Ending Balance | 387,310 | 327,867 |
Foreign Currency Translation Adjustments, Net | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (6,488) | (9,902) |
Other comprehensive loss (income) before reclassifications | (1,676) | 279 |
Ending Balance | (8,164) | (9,623) |
Unrealized (Loss) Gain on Investments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (10) | (12) |
Other comprehensive loss (income) before reclassifications | 10 | 6 |
Ending Balance | 0 | (6) |
Unrealized (Loss) Gain on Forward Contract | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (649) | (181) |
Other comprehensive loss (income) before reclassifications | 378 | (321) |
Amounts reclassified from accumulated other comprehensive loss | 163 | (41) |
Ending Balance | (108) | (543) |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (7,147) | (10,095) |
Other comprehensive loss (income) before reclassifications | (1,288) | (36) |
Amounts reclassified from accumulated other comprehensive loss | 163 | (41) |
Ending Balance | $ (8,272) | $ (10,172) |
Summary of Impact on Condensed
Summary of Impact on Condensed Consolidated Statements of Operations Line Items (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of goods sold | $ 161,367 | $ 151,002 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of goods sold | $ 163 | $ (41) |
Derivative Financial Instrume61
Derivative Financial Instrument - Cash Flow Hedges - Additional Information (Detail) - USD ($) | May 05, 2018 | May 05, 2018 | Feb. 03, 2018 |
Derivative [Line Items] | |||
Cash flow hedge ineffectiveness | $ 0 | ||
Foreign currency forward exchange contract loss to be reclassified during next 12 months | 100,000 | $ 100,000 | $ 600,000 |
Foreign currency forward exchange contract | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Derivative instrument, hedging percentage | 45.00% | ||
Notional amount outstanding | $ 10,400,000 | $ 10,400,000 | $ 6,000,000 |
Derivative maturity, month and year | 2019-01 |
Fair Value and Balance Sheet Cl
Fair Value and Balance Sheet Classification of Hedging Instruments (Detail) - USD ($) $ in Thousands | May 05, 2018 | Feb. 03, 2018 |
Foreign currency forward exchange contract | Designated as Hedging Instrument | Accounts Payable | Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Derivative financial instrument, fair value | $ 108 | $ 649 |
Summary of Effect and Classific
Summary of Effect and Classification of the Company's Hedging Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Foreign currency forward exchange contract | Designated as Hedging Instrument | Cost of goods sold | Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Loss (Gain) reclassified from accumulated other comprehensive loss to income | $ 163 | $ (41) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | |
May 05, 2018 | Feb. 03, 2018 | |
Income Tax Disclosure [Line Items] | ||
Unrecognized tax benefits | $ 1,400,000 | |
Unrecognized tax benefits, interest and penalties | $ 300,000 | |
Unrecognized tax benefits, increase (decrease) | $ 33,000 | |
Increase (decrease) in interest and penalties | 14,000 | |
Deferred Tax Assets, Valuation Allowance against remaining assets | 2,400,000 | |
Decrease in valuation allowance | $ (114,000) | |
Internal Revenue Service (IRS) | Earliest Tax Year | ||
Income Tax Disclosure [Line Items] | ||
Open tax years | 2,011 | |
Internal Revenue Service (IRS) | Latest Tax Year | ||
Income Tax Disclosure [Line Items] | ||
Open tax years | 2,018 |
Stock Options, Stock Apprecia65
Stock Options, Stock Appreciation Rights and Restricted Shares - Additional Information (Detail) | 3 Months Ended |
May 05, 2018USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of restricted stock vested | 77,453 |
Number of restricted stock tax withholding value | $ | $ 300,000 |
Performance Based Restricted Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares awarded | 45,093 |
Fair value of stock granted | $ | $ 1,200,000 |
Vesting period of awards | 3 years |
Performance Based Restricted Stock Awards | Second Amended And Restated Long Term Incentive Compensation Plan, 2005 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares awarded | 116,328 |
Awards expected vesting percentage | 100.00% |
Award vesting date | 2021-04 |
Value of award granted | $ | $ 3,100,000 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of restricted stock tax withheld | 9,708 |
Revenues Generated by Segments
Revenues Generated by Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 255,234 | $ 242,090 |
Total depreciation and amortization | 3,227 | 3,468 |
Total operating income | 15,091 | 16,421 |
Interest expense | 2,009 | 1,956 |
Total net income before income taxes | 13,082 | 14,465 |
Men's Sportswear and Swim | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 199,606 | 185,866 |
Total depreciation and amortization | 1,839 | 1,851 |
Total operating income | 13,245 | 15,515 |
Women's Sportswear | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 25,890 | 29,739 |
Total depreciation and amortization | 746 | 795 |
Total operating income | (3,143) | (969) |
Direct-to-Consumer | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 19,939 | 18,218 |
Total depreciation and amortization | 585 | 766 |
Total operating income | (1,397) | (4,101) |
Licensing | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 9,799 | 8,267 |
Total depreciation and amortization | 57 | 56 |
Total operating income | $ 6,386 | $ 5,976 |
Revenues From External Customer
Revenues From External Customers Related To Continuing Operations In United States and Foreign Countries (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenues | $ 255,234 | $ 242,090 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenues | 222,592 | 212,072 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenues | $ 32,642 | $ 30,018 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | May 05, 2018 | Feb. 03, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior subordinated notes payable, net | $ 49,855 | $ 49,818 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts of the real estate mortgages | 33,400 | 33,600 |
Level 2 | Senior Subordinated Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of the 7 7/8% senior subordinated notes payable | $ 52,100 | $ 50,100 |
Debt instrument stated interest rate | 7.875% | 7.875% |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | May 05, 2018 | Feb. 04, 2018 | Feb. 03, 2018 | Apr. 29, 2017 | Jan. 28, 2017 |
Current Assets: | |||||
Cash and cash equivalents | $ 50,471 | $ 35,222 | $ 35,222 | $ 26,404 | $ 30,695 |
Investment, at fair value | 4,912 | 14,086 | |||
Accounts receivable, net | 201,818 | 156,863 | |||
Inventories | 150,965 | 175,459 | |||
Prepaid expenses and other current assets | 9,810 | 8,151 | |||
Total current assets | 417,976 | 389,781 | |||
Property and equipment, net | 55,425 | 56,164 | |||
Other intangible assets, net | 186,017 | 186,216 | |||
Deferred income taxes | 541 | 411 | |||
Other assets | 1,569 | 1,590 | |||
TOTAL | 661,528 | 634,162 | |||
Current Liabilities: | |||||
Accounts payable | 52,674 | 98,848 | |||
Accrued expenses and other liabilities | 44,858 | 35,768 | |||
Accrued interest payable | 350 | 1,334 | |||
Accrued income tax payable | 1,805 | 1,466 | |||
Unearned revenues | 4,651 | 2,907 | |||
Total current liabilities | 104,338 | 140,323 | |||
Senior subordinated notes payable, net | 49,855 | 49,818 | |||
Senior credit facility | 62,404 | 11,154 | |||
Real estate mortgages | 32,495 | 32,721 | |||
Income taxes payable | 3,868 | 4,157 | |||
Unearned revenues and other long-term liabilities | 13,989 | 13,524 | |||
Deferred income taxes | 7,269 | 4,915 | |||
Total long-term liabilities | 169,880 | 116,289 | |||
Total liabilities | 274,218 | 256,612 | |||
Total equity | 387,310 | 377,550 | 377,550 | 327,867 | 313,687 |
TOTAL | 661,528 | 634,162 | |||
Parent | |||||
Current Assets: | |||||
Intercompany receivable, net | 96,861 | 97,692 | |||
Total current assets | 96,861 | 97,692 | |||
Investment in subsidiaries | 345,242 | 335,883 | |||
TOTAL | 442,103 | 433,575 | |||
Current Liabilities: | |||||
Accrued interest payable | 350 | 1,334 | |||
Accrued income tax payable | 720 | 716 | |||
Total current liabilities | 1,070 | 2,050 | |||
Senior subordinated notes payable, net | 49,855 | 49,818 | |||
Income taxes payable | 3,868 | 4,157 | |||
Total long-term liabilities | 53,723 | 53,975 | |||
Total liabilities | 54,793 | 56,025 | |||
Total equity | 387,310 | 377,550 | |||
TOTAL | 442,103 | 433,575 | |||
Guarantors | |||||
Current Assets: | |||||
Cash and cash equivalents | 5,303 | 830 | 830 | 3,964 | 2,578 |
Accounts receivable, net | 170,276 | 125,534 | |||
Inventories | 125,734 | 145,797 | |||
Prepaid expenses and other current assets | 8,610 | 7,116 | |||
Total current assets | 309,923 | 279,277 | |||
Property and equipment, net | 52,430 | 53,614 | |||
Other intangible assets, net | 153,685 | 153,884 | |||
Other assets | 1,347 | 1,391 | |||
TOTAL | 517,385 | 488,166 | |||
Current Liabilities: | |||||
Accounts payable | 47,933 | 85,659 | |||
Accrued expenses and other liabilities | 37,103 | 27,621 | |||
Accrued income tax payable | 624 | 624 | |||
Unearned revenues | 3,732 | 2,372 | |||
Intercompany payable, net | 79,579 | 83,376 | |||
Total current liabilities | 168,971 | 199,652 | |||
Senior credit facility | 62,404 | 11,154 | |||
Real estate mortgages | 32,495 | 32,721 | |||
Unearned revenues and other long-term liabilities | 13,758 | 13,277 | |||
Deferred income taxes | 7,269 | 4,915 | |||
Total long-term liabilities | 115,926 | 62,067 | |||
Total liabilities | 284,897 | 261,719 | |||
Total equity | 232,488 | 226,447 | |||
TOTAL | 517,385 | 488,166 | |||
Non-Guarantors | |||||
Current Assets: | |||||
Cash and cash equivalents | 45,168 | $ 34,392 | 34,392 | $ 22,440 | $ 28,117 |
Investment, at fair value | 4,912 | 14,086 | |||
Accounts receivable, net | 31,542 | 31,329 | |||
Inventories | 25,231 | 29,662 | |||
Prepaid expenses and other current assets | 1,200 | 1,035 | |||
Total current assets | 108,053 | 110,504 | |||
Property and equipment, net | 2,995 | 2,550 | |||
Other intangible assets, net | 32,332 | 32,332 | |||
Deferred income taxes | 541 | 411 | |||
Other assets | 222 | 199 | |||
TOTAL | 144,143 | 145,996 | |||
Current Liabilities: | |||||
Accounts payable | 4,741 | 13,189 | |||
Accrued expenses and other liabilities | 7,755 | 8,147 | |||
Accrued income tax payable | 461 | 126 | |||
Unearned revenues | 919 | 535 | |||
Intercompany payable, net | 23,528 | 18,886 | |||
Total current liabilities | 37,404 | 40,883 | |||
Unearned revenues and other long-term liabilities | 231 | 247 | |||
Total long-term liabilities | 231 | 247 | |||
Total liabilities | 37,635 | 41,130 | |||
Total equity | 106,508 | 104,866 | |||
TOTAL | 144,143 | 145,996 | |||
Eliminations | |||||
Current Assets: | |||||
Intercompany receivable, net | (96,861) | (97,692) | |||
Total current assets | (96,861) | (97,692) | |||
Investment in subsidiaries | (345,242) | (335,883) | |||
TOTAL | (442,103) | (433,575) | |||
Current Liabilities: | |||||
Intercompany payable, net | (103,107) | (102,262) | |||
Total current liabilities | (103,107) | (102,262) | |||
Total liabilities | (103,107) | (102,262) | |||
Total equity | (338,996) | (331,313) | |||
TOTAL | $ (442,103) | $ (433,575) |
Condensed Consolidating Stateme
Condensed Consolidating Statement of Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Revenues: | ||
Net sales | $ 245,435 | $ 233,823 |
Royalty income | 9,799 | 8,267 |
Total revenues | 255,234 | 242,090 |
Cost of sales | 161,367 | 151,002 |
Gross profit | 93,867 | 91,088 |
Operating expenses: | ||
Selling, general and administrative expenses | 75,549 | 71,199 |
Depreciation and amortization | 3,227 | 3,468 |
Total operating expenses | 78,776 | 74,667 |
Operating income | 15,091 | 16,421 |
Interest expense | 2,009 | 1,956 |
Net income before income taxes | 13,082 | 14,465 |
Income tax provision | 2,835 | 1,694 |
Net income | 10,247 | 12,771 |
Other comprehensive loss | (1,125) | (77) |
Comprehensive income | 9,122 | 12,694 |
Parent | ||
Operating expenses: | ||
Equity in earnings of subsidiaries, net | 10,247 | 12,771 |
Net income | 10,247 | 12,771 |
Other comprehensive loss | (1,125) | (77) |
Comprehensive income | 9,122 | 12,694 |
Guarantors | ||
Revenues: | ||
Net sales | 216,215 | 206,686 |
Royalty income | 6,376 | 5,386 |
Total revenues | 222,591 | 212,072 |
Cost of sales | 144,261 | 133,927 |
Gross profit | 78,330 | 78,145 |
Operating expenses: | ||
Selling, general and administrative expenses | 64,247 | 61,599 |
Depreciation and amortization | 2,912 | 3,210 |
Total operating expenses | 67,159 | 64,809 |
Operating income | 11,171 | 13,336 |
Interest expense | 2,107 | 1,989 |
Net income before income taxes | 9,064 | 11,347 |
Income tax provision | 2,326 | 1,325 |
Net income | 6,738 | 10,022 |
Comprehensive income | 6,738 | 10,022 |
Non-Guarantors | ||
Revenues: | ||
Net sales | 29,220 | 27,137 |
Royalty income | 3,423 | 2,881 |
Total revenues | 32,643 | 30,018 |
Cost of sales | 17,106 | 17,075 |
Gross profit | 15,537 | 12,943 |
Operating expenses: | ||
Selling, general and administrative expenses | 11,302 | 9,600 |
Depreciation and amortization | 315 | 258 |
Total operating expenses | 11,617 | 9,858 |
Operating income | 3,920 | 3,085 |
Interest expense | (98) | (33) |
Net income before income taxes | 4,018 | 3,118 |
Income tax provision | 509 | 369 |
Net income | 3,509 | 2,749 |
Other comprehensive loss | (1,125) | (77) |
Comprehensive income | 2,384 | 2,672 |
Eliminations | ||
Operating expenses: | ||
Equity in earnings of subsidiaries, net | (10,247) | (12,771) |
Net income | (10,247) | (12,771) |
Other comprehensive loss | 1,125 | 77 |
Comprehensive income | $ (9,122) | $ (12,694) |
Condensed Consolidating State71
Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: | $ (43,078) | $ (37,767) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (1,693) | (1,901) |
Purchase of investments | 0 | (10,256) |
Proceeds from investments maturities | 9,184 | 4,655 |
Net cash provided by (used in) investing activities | 7,491 | (7,502) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings from senior credit facility | 106,959 | 98,764 |
Payments on senior credit facility | (55,709) | (57,140) |
Payments on real estate mortgages | (225) | (220) |
Payments for employee taxes on shares withheld | (259) | 0 |
Payments on capital leases | (17) | (69) |
Proceeds from exercise of stock options | 101 | 23 |
Net cash (used in) provided by financing activities | 50,850 | 41,358 |
Effect of exchange rate changes on cash and cash equivalents | (14) | (380) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 15,249 | (4,291) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 35,222 | 30,695 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 50,471 | 26,404 |
Parent | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: | (1,000) | 445 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Intercompany transactions | 913 | (88) |
Net cash provided by (used in) investing activities | 913 | (88) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 101 | 23 |
Net cash (used in) provided by financing activities | 101 | 23 |
Effect of exchange rate changes on cash and cash equivalents | (14) | (380) |
Guarantors | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: | (40,688) | (33,893) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (812) | (1,578) |
Net cash provided by (used in) investing activities | (812) | (1,578) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings from senior credit facility | 106,959 | 98,764 |
Payments on senior credit facility | (55,709) | (57,140) |
Payments on real estate mortgages | (225) | (220) |
Payments for employee taxes on shares withheld | (259) | |
Payments on capital leases | (17) | (69) |
Intercompany transactions | (4,776) | (4,478) |
Net cash (used in) provided by financing activities | 45,973 | 36,857 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 4,473 | 1,386 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 830 | 2,578 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 5,303 | 3,964 |
Non-Guarantors | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: | (1,390) | (4,319) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (881) | (323) |
Purchase of investments | (10,256) | |
Proceeds from investments maturities | 9,184 | 4,655 |
Net cash provided by (used in) investing activities | 8,303 | (5,924) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Intercompany transactions | 3,877 | 4,946 |
Net cash (used in) provided by financing activities | 3,877 | 4,946 |
Effect of exchange rate changes on cash and cash equivalents | (14) | (380) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 10,776 | (5,677) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 34,392 | 28,117 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 45,168 | 22,440 |
Eliminations | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Intercompany transactions | (913) | 88 |
Net cash provided by (used in) investing activities | (913) | 88 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Intercompany transactions | 899 | (468) |
Net cash (used in) provided by financing activities | 899 | (468) |
Effect of exchange rate changes on cash and cash equivalents | $ 14 | $ 380 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands | May 29, 2018 | May 05, 2018 | Feb. 03, 2018 |
Subsequent Event [Line Items] | |||
Senior subordinated notes payable, net | $ 49,855 | $ 49,818 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Debt instrument stated interest rate | 100.00% | ||
Total redemption price | $ 50,600 | ||
Subsequent Event | Senior Subordinated Notes | |||
Subsequent Event [Line Items] | |||
Senior subordinated notes payable, net | $ 50,000 | ||
Debt instrument stated interest rate | 7.875% |