Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Aug. 02, 2014 | Sep. 02, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'GUESS INC | ' |
Trading Symbol | 'GES | ' |
Entity Central Index Key | '0000912463 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 2-Aug-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--01-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 85,214,945 |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Aug. 02, 2014 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $461,519 | $502,945 |
Short-term investments | 5,019 | 5,123 |
Accounts receivable, net | 233,906 | 276,565 |
Inventories | 392,387 | 350,899 |
Other current assets | 109,475 | 80,554 |
Total current assets | 1,202,306 | 1,216,086 |
Property and equipment, net | 309,155 | 324,606 |
Goodwill | 38,639 | 38,992 |
Other intangible assets, net | 12,336 | 13,143 |
Long-term deferred tax assets | 56,891 | 54,973 |
Other assets | 121,092 | 116,631 |
Total assets | 1,740,419 | 1,764,431 |
Current liabilities: | ' | ' |
Current portion of capital lease obligations and borrowings | 1,997 | 4,160 |
Accounts payable | 194,101 | 191,532 |
Accrued expenses | 164,068 | 174,333 |
Total current liabilities | 360,166 | 370,025 |
Capital lease obligations and other long-term debt | 6,735 | 7,580 |
Deferred rent and lease incentives | 90,044 | 90,492 |
Other long-term liabilities | 114,695 | 120,518 |
Total liabilities | 571,640 | 588,615 |
Redeemable noncontrolling interests | 5,468 | 5,830 |
Commitments and contingencies (Note 12) | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock, $.01 par value. Authorized 10,000,000 shares; no shares issued and outstanding | 0 | 0 |
Common stock, $.01 par value. Authorized 150,000,000 shares; issued 139,513,762 and 139,245,729 shares, outstanding 85,257,404 and 84,962,345 shares, at August 2, 2014 and February 1, 2014, respectively | 853 | 850 |
Paid-in capital | 447,587 | 439,742 |
Retained earnings | 1,229,022 | 1,247,180 |
Accumulated other comprehensive loss | -10,774 | -13,801 |
Treasury stock, 54,256,358 and 54,283,384 shares at August 2, 2014 and February 1, 2014, respectively | -519,198 | -519,457 |
Guess, Inc. stockholders’ equity | 1,147,490 | 1,154,514 |
Nonredeemable noncontrolling interests | 15,821 | 15,472 |
Total stockholders’ equity | 1,163,311 | 1,169,986 |
Total liabilities and stockholders' equity | $1,740,419 | $1,764,431 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Aug. 02, 2014 | Feb. 01, 2014 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized shares | 150,000,000 | 150,000,000 |
Common stock, shares issued | 139,513,762 | 139,245,729 |
Common stock, shares outstanding | 85,257,404 | 84,962,345 |
Treasury stock, shares | 54,256,358 | 54,283,384 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Product sales | $581,779 | $611,894 | $1,078,707 | $1,130,558 |
Net royalties | 26,792 | 27,118 | 52,405 | 57,368 |
Net revenue | 608,571 | 639,012 | 1,131,112 | 1,187,926 |
Cost of product sales | 391,794 | 390,480 | 738,104 | 741,968 |
Gross profit | 216,777 | 248,532 | 393,008 | 445,958 |
Selling, general and administrative expenses | 186,919 | 181,623 | 365,127 | 365,387 |
Restructuring charges | 0 | 6,129 | 0 | 8,466 |
Earnings from operations | 29,858 | 60,780 | 27,881 | 72,105 |
Other income (expense): | ' | ' | ' | ' |
Interest expense | -772 | -365 | -1,297 | -914 |
Interest income | 320 | 475 | 725 | 809 |
Other income (expense), net | 4,766 | -139 | 3,647 | 5,318 |
Total other income (expense) | 4,314 | -29 | 3,075 | 5,213 |
Earnings before income tax expense | 34,172 | 60,751 | 30,956 | 77,318 |
Income tax expense | 11,900 | 20,048 | 10,871 | 25,515 |
Net earnings | 22,272 | 40,703 | 20,085 | 51,803 |
Net earnings attributable to noncontrolling interests | 318 | 837 | 232 | 2,021 |
Net earnings attributable to Guess, Inc. | $21,954 | $39,866 | $19,853 | $49,782 |
Net earnings per common share attributable to common stockholders (Note 2): | ' | ' | ' | ' |
Basic (in dollars per share) | $0.26 | $0.47 | $0.23 | $0.59 |
Diluted (in dollars per share) | $0.26 | $0.47 | $0.23 | $0.58 |
Weighted average common shares outstanding attributable to common stockholders (Note 2): | ' | ' | ' | ' |
Basic (in shares) | 84,573 | 84,080 | 84,536 | 84,331 |
Diluted (in shares) | 84,799 | 84,347 | 84,765 | 84,563 |
Dividends declared per common share (in dollars per share) | $0.23 | $0.20 | $0.45 | $0.40 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net earnings | $22,272 | $40,703 | $20,085 | $51,803 |
Foreign currency translation adjustment | ' | ' | ' | ' |
Gains (losses) arising during the period | -19,708 | 2,390 | 2,542 | -22,024 |
Derivative financial instruments designated as cash flow hedges | ' | ' | ' | ' |
Gains (losses) arising during the period | 1,867 | 227 | -812 | 4,897 |
Less income tax effect | -515 | -163 | 106 | -745 |
Reclassification to net earnings for (gains) losses realized | 290 | -508 | 815 | -966 |
Less income tax effect | 391 | 84 | 370 | 154 |
Marketable securities | ' | ' | ' | ' |
Losses arising during the period | -40 | -132 | -66 | -33 |
Less income tax effect | 15 | 51 | 25 | 11 |
Reclassification to net earnings for gains realized | 0 | 0 | -87 | 0 |
Less income tax effect | 0 | 0 | 33 | 0 |
Supplemental Executive Retirement Plan (“SERPâ€) | ' | ' | ' | ' |
Plan amendment | 0 | 4,529 | 0 | 4,529 |
Less income tax effect | 0 | -1,733 | 0 | -1,733 |
Actuarial loss amortization | 235 | 277 | 469 | 554 |
Prior service (credit) cost amortization | -58 | 156 | -116 | 311 |
Less income tax effect | -68 | -165 | -135 | -330 |
Total comprehensive income | 4,681 | 45,716 | 23,229 | 36,428 |
Less comprehensive income attributable to noncontrolling interests: | ' | ' | ' | ' |
Net earnings | 318 | 837 | 232 | 2,021 |
Foreign currency translation adjustment | -284 | -561 | 117 | -209 |
Amounts attributable to noncontrolling interests | 34 | 276 | 349 | 1,812 |
Comprehensive income attributable to Guess, Inc. | $4,647 | $45,440 | $22,880 | $34,616 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 |
Cash flows from operating activities: | ' | ' |
Net earnings | $20,085 | $51,803 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' |
Depreciation and amortization of property and equipment | 41,363 | 43,327 |
Amortization of intangible assets | 1,291 | 981 |
Share-based compensation expense | 7,613 | 5,999 |
Unrealized forward contract gains | -1,047 | -1,601 |
Net loss on disposition of property and equipment and long-term assets | 5,986 | 7,290 |
Other items, net | 847 | -3,215 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 42,381 | 38,950 |
Inventories | -43,485 | -33,156 |
Prepaid expenses and other assets | -8,484 | 4,752 |
Accounts payable and accrued expenses | -30,286 | -15,890 |
Deferred rent and lease incentives | -442 | -2,354 |
Other long-term liabilities | -5,459 | 5,281 |
Net cash provided by operating activities | 30,363 | 102,167 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -32,316 | -40,445 |
Changes in other assets | 319 | 7,804 |
Proceeds from sale and maturity of investments | 598 | 1,826 |
Acquisition of businesses, net of cash acquired | -309 | -653 |
Net cash settlement of forward contracts | -842 | 1,468 |
Net cash used in investing activities | -32,550 | -30,000 |
Cash flows from financing activities: | ' | ' |
Proceeds from borrowings | 786 | 1,294 |
Repayment of borrowings and capital lease obligations | -3,720 | -1,002 |
Dividends paid | -38,455 | -34,100 |
Noncontrolling interest capital contributions | 0 | 521 |
Issuance of common stock, net of nonvested award repurchases | 619 | 3,259 |
Excess tax benefits from share-based compensation | 148 | 221 |
Purchase of treasury stock | 0 | -22,099 |
Net cash used in financing activities | -40,622 | -51,906 |
Effect of exchange rates on cash and cash equivalents | 1,383 | -5,557 |
Net change in cash and cash equivalents | -41,426 | 14,704 |
Cash and cash equivalents at beginning of period | 502,945 | 329,021 |
Cash and cash equivalents at end of period | 461,519 | 343,725 |
Supplemental cash flow data: | ' | ' |
Interest paid | 870 | 537 |
Income taxes paid | $46,208 | $50,986 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Aug. 02, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements of Guess?, Inc. and its subsidiaries (the “Company”) contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the condensed consolidated balance sheets as of August 2, 2014 and February 1, 2014, the condensed consolidated statements of income and comprehensive income for the three and six months ended August 2, 2014 and August 3, 2013, and the condensed consolidated statements of cash flows for the six months ended August 2, 2014 and August 3, 2013. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, they have been condensed and do not include all of the information and footnotes required by GAAP for complete financial statements. The results of operations for the three and six months ended August 2, 2014 are not necessarily indicative of the results of operations to be expected for the full fiscal year. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended February 1, 2014. | |
The three and six months ended August 2, 2014 had the same number of days as the three and six months ended August 3, 2013. All references herein to “fiscal 2015,” “fiscal 2014” and “fiscal 2013” represent the results of the 52-week fiscal year ending January 31, 2015, the 52-week fiscal year ended February 1, 2014 and the 53-week fiscal year ended February 2, 2013, respectively. | |
New Accounting Guidance | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which requires that an unrecognized tax benefit be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar loss or a tax credit carryforward, if specific criteria are met. The Company adopted this guidance effective February 2, 2014. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. | |
In April 2014, the FASB issued authoritative guidance which raises the threshold for disposals to qualify as discontinued operations. Under this new guidance, a discontinued operation is (1) a component of an entity or group of components that have been disposed of or are classified as held for sale and represent a strategic shift that has or will have a major effect on an entity’s operations and financial results, or (2) an acquired business that is classified as held for sale on the acquisition date. This guidance also requires expanded or new disclosures for discontinued operations, individually material disposals that do not meet the definition of a discontinued operation, an entity’s continuing involvement with a discontinued operation following disposal and retained equity method investments in a discontinued operation. This guidance is effective for fiscal periods beginning after December 15, 2014. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. | |
In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2016 and allows for either full retrospective or modified retrospective adoption. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. | |
In August 2014, the FASB issued authoritative guidance that requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern and requires additional disclosures if certain criteria are met. This guidance is effective for fiscal periods ending after December 15, 2016, with early adoption permitted. The adoption of this guidance is not expected to impact the Company’s consolidated financial statements or related disclosures. |
Earnings_per_Share
Earnings per Share | 6 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings per Share | ' | |||||||||||||||
Earnings Per Share | ||||||||||||||||
Basic earnings per share represents net earnings attributable to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share represents net earnings attributable to common stockholders divided by the weighted average number of common shares outstanding, inclusive of the dilutive impact of common equivalent shares outstanding during the period. However, nonvested restricted stock awards (referred to as participating securities) are excluded from the dilutive impact of common equivalent shares outstanding in accordance with authoritative guidance under the two-class method since the nonvested restricted stockholders are entitled to participate in dividends declared on common stock as if the shares were fully vested and hence are deemed to be participating securities. Under the two-class method, earnings attributable to nonvested restricted stockholders are excluded from net earnings attributable to common stockholders for purposes of calculating basic and diluted earnings per common share. However, net losses are not allocated to nonvested restricted stockholders since they are not contractually obligated to share in the losses of the Company. | ||||||||||||||||
The computation of basic and diluted net earnings per common share attributable to common stockholders is as follows (in thousands, except per share data): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
Aug 2, 2014 | Aug 3, 2013 | Aug 2, 2014 | Aug 3, 2013 | |||||||||||||
Net earnings attributable to Guess?, Inc. | $ | 21,954 | $ | 39,866 | $ | 19,853 | $ | 49,782 | ||||||||
Less net earnings attributable to nonvested restricted stockholders | 167 | 351 | 292 | 410 | ||||||||||||
Net earnings attributable to common stockholders | $ | 21,787 | $ | 39,515 | $ | 19,561 | $ | 49,372 | ||||||||
Weighted average common shares used in basic computations | 84,573 | 84,080 | 84,536 | 84,331 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options and restricted stock units | 226 | 267 | 229 | 232 | ||||||||||||
Weighted average common shares used in diluted computations | 84,799 | 84,347 | 84,765 | 84,563 | ||||||||||||
Net earnings per common share attributable to common stockholders: | ||||||||||||||||
Basic | $ | 0.26 | $ | 0.47 | $ | 0.23 | $ | 0.59 | ||||||||
Diluted | $ | 0.26 | $ | 0.47 | $ | 0.23 | $ | 0.58 | ||||||||
For the three months ended August 2, 2014 and August 3, 2013, equity awards granted for 1,666,111 and 1,061,684, respectively, of the Company’s common shares and for the six months ended August 2, 2014 and August 3, 2013, equity awards granted for 1,549,291 and 1,412,576, respectively, of the Company’s common shares were outstanding but were excluded from the computation of diluted weighted average common shares and common share equivalents outstanding because the assumed proceeds, as calculated under the treasury stock method, resulted in these awards being antidilutive. For the three and six months ended August 2, 2014, the Company also excluded 259,700 nonvested stock units which are subject to the achievement of performance-based vesting conditions from the computation of diluted weighted average common shares and common share equivalents outstanding because the performance condition had not yet been achieved as of August 2, 2014. For the three and six months ended August 3, 2013, the Company excluded 243,700 nonvested stock units which were subject to the achievement of performance-based vesting conditions from the computation of diluted weighted average common shares and common share equivalents outstanding because the performance condition had not yet been achieved as of August 3, 2013. | ||||||||||||||||
On March 14, 2011, the Company’s Board of Directors authorized a program to repurchase, from time-to-time and as market and business conditions warrant, up to $250 million of the Company’s common stock (the “2011 Share Repurchase Program”). On June 26, 2012, the Company’s Board of Directors authorized a new program to repurchase, from time-to-time and as market and business conditions warrant, up to $500 million of the Company’s common stock (the “2012 Share Repurchase Program”). The 2012 Share Repurchase Program was in addition to the 2011 Share Repurchase Program. Repurchases under programs may be made on the open market or in privately negotiated transactions, pursuant to Rule 10b5-1 trading plans or other available means. There is no minimum or maximum number of shares to be repurchased under programs and programs may be discontinued at any time, without prior notice. There were no share repurchases under the 2012 Share Repurchase Program during the three and six months ended August 2, 2014. During the six months ended August 3, 2013, the Company repurchased 882,551 shares under the 2011 and 2012 Share Repurchase Programs at an aggregate cost of $22.1 million. All such share repurchases were made during the three months ended May 4, 2013. As of August 2, 2014, the Company had remaining authority under the 2012 Share Repurchase Program to purchase $495.8 million of its common stock and no remaining authority to purchase shares under the 2011 Share Repurchase Program. |
Stockholders_Equity_and_Redeem
Stockholders' Equity and Redeemable Noncontrolling Interests | 6 Months Ended | |||||||||||||||||||
Aug. 02, 2014 | ||||||||||||||||||||
Stockholders' Equity and Redeemable Noncontrolling Interests [Abstract] | ' | |||||||||||||||||||
Stockholders' Equity and Redeemable Noncontrolling Interests | ' | |||||||||||||||||||
Stockholders’ Equity and Redeemable Noncontrolling Interests | ||||||||||||||||||||
A reconciliation of the total carrying amount of total stockholders’ equity, Guess?, Inc. stockholders’ equity and stockholders’ equity attributable to nonredeemable and redeemable noncontrolling interests for the fiscal year ended February 1, 2014 and six months ended August 2, 2014 is as follows (in thousands): | ||||||||||||||||||||
Stockholders’ Equity | ||||||||||||||||||||
Guess?, Inc. | Nonredeemable | Total | Redeemable | |||||||||||||||||
Stockholders’ | Noncontrolling | Noncontrolling | ||||||||||||||||||
Equity | Interests | Interests | ||||||||||||||||||
Balance at February 2, 2013 | $ | 1,086,992 | $ | 13,876 | $ | 1,100,868 | $ | 3,144 | ||||||||||||
Net earnings | 153,434 | 4,277 | 157,711 | — | ||||||||||||||||
Foreign currency translation adjustment | (17,621 | ) | (804 | ) | (18,425 | ) | (104 | ) | ||||||||||||
Gain on derivative financial instruments designated as cash flow hedges, net of income tax of ($237) | 1,669 | — | 1,669 | — | ||||||||||||||||
Loss on marketable securities, net of income tax of $4 | (7 | ) | — | (7 | ) | — | ||||||||||||||
SERP plan amendment, prior service cost amortization and actuarial valuation gain (loss) and related amortization, net of income tax of ($2,963) | 4,619 | — | 4,619 | — | ||||||||||||||||
Issuance of common stock under stock compensation plans, net of tax effect | 2,404 | — | 2,404 | — | ||||||||||||||||
Issuance of stock under Employee Stock Purchase Plan | 980 | — | 980 | — | ||||||||||||||||
Share-based compensation | 13,949 | — | 13,949 | — | ||||||||||||||||
Dividends | (68,215 | ) | — | (68,215 | ) | — | ||||||||||||||
Share repurchases | (22,099 | ) | — | (22,099 | ) | — | ||||||||||||||
Noncontrolling interest capital contribution | — | — | — | 1,199 | ||||||||||||||||
Noncontrolling interest capital distribution | — | (1,877 | ) | (1,877 | ) | — | ||||||||||||||
Redeemable noncontrolling interest redemption value adjustment | (1,591 | ) | — | (1,591 | ) | 1,591 | ||||||||||||||
Balance at February 1, 2014 | $ | 1,154,514 | $ | 15,472 | $ | 1,169,986 | $ | 5,830 | ||||||||||||
Net earnings | 19,853 | 232 | 20,085 | — | ||||||||||||||||
Foreign currency translation adjustment | 2,425 | 117 | 2,542 | 65 | ||||||||||||||||
Gain on derivative financial instruments designated as cash flow hedges, net of income tax of $476 | 479 | — | 479 | — | ||||||||||||||||
Loss on marketable securities, net of income tax of $58 | (95 | ) | — | (95 | ) | — | ||||||||||||||
SERP prior service credit and actuarial valuation amortization, net of income tax of ($135) | 218 | — | 218 | — | ||||||||||||||||
Issuance of common stock under stock compensation plans, net of tax effect | (93 | ) | — | (93 | ) | — | ||||||||||||||
Issuance of stock under Employee Stock Purchase Plan | 635 | — | 635 | — | ||||||||||||||||
Share-based compensation | 7,613 | — | 7,613 | — | ||||||||||||||||
Dividends | (38,486 | ) | — | (38,486 | ) | — | ||||||||||||||
Redeemable noncontrolling interest redemption value adjustment | 427 | — | 427 | (427 | ) | |||||||||||||||
Balance at August 2, 2014 | $ | 1,147,490 | $ | 15,821 | $ | 1,163,311 | $ | 5,468 | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
The changes in accumulated other comprehensive income (loss), net of related income taxes, for the three and six months ended August 2, 2014 and August 3, 2013 are as follows (in thousands): | ||||||||||||||||||||
Three Months Ended Aug 2, 2014 | ||||||||||||||||||||
Foreign Currency Translation Adjustment | Derivative Financial Instruments Designated as Cash Flow Hedges | Marketable Securities | SERP | Total | ||||||||||||||||
Balance at May 3, 2014 | $ | 14,846 | $ | (1,667 | ) | $ | 33 | $ | (6,679 | ) | $ | 6,533 | ||||||||
Gains (losses) arising during the period | (19,424 | ) | 1,352 | (25 | ) | — | (18,097 | ) | ||||||||||||
Reclassification to net earnings for losses realized | — | 681 | — | 109 | 790 | |||||||||||||||
Net other comprehensive income (loss) | (19,424 | ) | 2,033 | (25 | ) | 109 | (17,307 | ) | ||||||||||||
Balance at August 2, 2014 | $ | (4,578 | ) | $ | 366 | $ | 8 | $ | (6,570 | ) | $ | (10,774 | ) | |||||||
Six Months Ended Aug 2, 2014 | ||||||||||||||||||||
Foreign Currency Translation Adjustment | Derivative Financial Instruments Designated as Cash Flow Hedges | Marketable Securities | SERP | Total | ||||||||||||||||
Balance at February 1, 2014 | $ | (7,003 | ) | $ | (113 | ) | $ | 103 | $ | (6,788 | ) | $ | (13,801 | ) | ||||||
Gains (losses) arising during the period | 2,425 | (706 | ) | (41 | ) | — | 1,678 | |||||||||||||
Reclassification to net earnings for (gains) losses realized | — | 1,185 | (54 | ) | 218 | 1,349 | ||||||||||||||
Net other comprehensive income (loss) | 2,425 | 479 | (95 | ) | 218 | 3,027 | ||||||||||||||
Balance at August 2, 2014 | $ | (4,578 | ) | $ | 366 | $ | 8 | $ | (6,570 | ) | $ | (10,774 | ) | |||||||
Three Months Ended Aug 3, 2013 | ||||||||||||||||||||
Foreign Currency Translation Adjustment | Derivative Financial Instruments Designated as Cash Flow Hedges | Marketable Securities | SERP | Total | ||||||||||||||||
Balance at May 4, 2013 | $ | (14,148 | ) | $ | 1,918 | $ | 169 | $ | (11,140 | ) | $ | (23,201 | ) | |||||||
Gains (losses) arising during the period | 2,951 | 64 | (81 | ) | 2,796 | 5,730 | ||||||||||||||
Reclassification to net earnings for (gains) losses realized | — | (424 | ) | — | 268 | (156 | ) | |||||||||||||
Net other comprehensive income (loss) | 2,951 | (360 | ) | (81 | ) | 3,064 | 5,574 | |||||||||||||
Balance at August 3, 2013 | $ | (11,197 | ) | $ | 1,558 | $ | 88 | $ | (8,076 | ) | $ | (17,627 | ) | |||||||
Six Months Ended Aug 3, 2013 | ||||||||||||||||||||
Foreign Currency Translation Adjustment | Derivative Financial Instruments Designated as Cash Flow Hedges | Marketable Securities | SERP | Total | ||||||||||||||||
Balance at February 2, 2013 | $ | 10,618 | $ | (1,782 | ) | $ | 110 | $ | (11,407 | ) | $ | (2,461 | ) | |||||||
Gains (losses) arising during the period | (21,815 | ) | 4,152 | (22 | ) | 2,796 | (14,889 | ) | ||||||||||||
Reclassification to net earnings for (gains) losses realized | — | (812 | ) | — | 535 | (277 | ) | |||||||||||||
Net other comprehensive income (loss) | (21,815 | ) | 3,340 | (22 | ) | 3,331 | (15,166 | ) | ||||||||||||
Balance at August 3, 2013 | $ | (11,197 | ) | $ | 1,558 | $ | 88 | $ | (8,076 | ) | $ | (17,627 | ) | |||||||
Details on reclassifications out of accumulated other comprehensive income (loss) to net earnings during the three and six months ended August 2, 2014 and August 3, 2013 are as follows (in thousands): | ||||||||||||||||||||
Three Months Ended | Six Months Ended | Location of | ||||||||||||||||||
(Gain) Loss | ||||||||||||||||||||
Reclassified from | ||||||||||||||||||||
Accumulated OCI | ||||||||||||||||||||
Aug 2, 2014 | 3-Aug-13 | Aug 2, 2014 | Aug 3, 2013 | into Earnings | ||||||||||||||||
Derivative financial instruments designated as cash flow hedges: | ||||||||||||||||||||
Foreign exchange currency contracts | $ | 265 | $ | (393 | ) | $ | 759 | $ | (872 | ) | Cost of sales | |||||||||
Foreign exchange currency contracts | 25 | (115 | ) | 56 | (94 | ) | Other income/expense | |||||||||||||
Less income tax effect | 391 | 84 | 370 | 154 | Income tax expense | |||||||||||||||
681 | (424 | ) | 1,185 | (812 | ) | |||||||||||||||
Marketable securities: | ||||||||||||||||||||
Available-for-sale securities | — | — | (87 | ) | — | Other income/expense | ||||||||||||||
Less income tax effect | — | — | 33 | — | Income tax expense | |||||||||||||||
— | — | (54 | ) | — | ||||||||||||||||
SERP: | ||||||||||||||||||||
Actuarial loss amortization | 235 | 277 | 469 | 554 | (1) | |||||||||||||||
Prior service (credit) cost amortization | (58 | ) | 156 | (116 | ) | 311 | (1) | |||||||||||||
Less income tax effect | (68 | ) | (165 | ) | (135 | ) | (330 | ) | Income tax expense | |||||||||||
109 | 268 | 218 | 535 | |||||||||||||||||
Total reclassifications during the period | $ | 790 | $ | (156 | ) | $ | 1,349 | $ | (277 | ) | ||||||||||
__________________________________ | ||||||||||||||||||||
-1 | These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. Refer to Note 13 for further information. | |||||||||||||||||||
Redeemable Noncontrolling Interests | ||||||||||||||||||||
The Company is party to a put arrangement with respect to the common securities that represent the remaining noncontrolling interest from the acquisition of its majority-owned subsidiary, Guess Sud SAS (“Guess Sud”). The put arrangement for Guess Sud, representing 40% of the total outstanding equity interest of that subsidiary, may be exercised at the discretion of the noncontrolling interest holders by providing written notice to the Company any time after January 30, 2012. The put arrangement is recorded on the balance sheet at its expected redemption value based on a method which approximates fair value and classified as a redeemable noncontrolling interest outside of permanent equity. The redemption value of the Guess Sud redeemable put arrangement was $4.3 million and $4.7 million at August 2, 2014 and February 1, 2014, respectively. | ||||||||||||||||||||
During fiscal 2014, the Company entered into a majority-owned joint venture to establish Guess Brasil Comércio e Distribuição S.A. (“Guess Brazil”). The Company funded $1.8 million to obtain a 60% interest in Guess Brazil and is subject to a put arrangement with respect to the common securities that represent the remaining noncontrolling interest. The put arrangement may be exercised at the discretion of the noncontrolling interest holder by providing written notice to the Company beginning in fiscal 2020, or sooner in certain limited circumstances, and every third anniversary thereafter subject to certain time restrictions. The redemption value of the Guess Brazil put arrangement is based on a multiple of Guess Brazil’s earnings before interest, taxes, depreciation and amortization subject to certain adjustments. The redemption value of the Guess Brazil redeemable put arrangement was $1.2 million and $1.1 million at August 2, 2014 and February 1, 2014, respectively. |
Accounts_Receivable
Accounts Receivable | 6 Months Ended | |||||||
Aug. 02, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Accounts Receivable | ' | |||||||
Accounts Receivable | ||||||||
Accounts receivable is summarized as follows (in thousands): | ||||||||
Aug 2, 2014 | Feb 1, 2014 | |||||||
Trade | $ | 258,446 | $ | 291,411 | ||||
Royalty | 8,629 | 16,372 | ||||||
Other | 5,172 | 8,174 | ||||||
272,247 | 315,957 | |||||||
Less allowance for doubtful accounts | 38,341 | 39,392 | ||||||
$ | 233,906 | $ | 276,565 | |||||
Accounts receivable consists of trade receivables relating primarily to the Company’s wholesale business in Europe, and to a lesser extent, to its wholesale businesses in North America and Asia, and royalty receivables relating to its licensing operations. The accounts receivable allowance includes allowances for doubtful accounts, wholesale sales returns and wholesale markdowns. Retail sales returns allowances are included in accrued expenses. |
Inventories
Inventories | 6 Months Ended | |||||||
Aug. 02, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories consist of the following (in thousands): | ||||||||
Aug 2, 2014 | Feb 1, 2014 | |||||||
Raw materials | $ | 14,778 | $ | 10,585 | ||||
Work in progress | 175 | 977 | ||||||
Finished goods | 377,434 | 339,337 | ||||||
$ | 392,387 | $ | 350,899 | |||||
As of August 2, 2014 and February 1, 2014, the Company had an allowance to write-down inventories to the lower of cost or market of $21.8 million and $23.4 million, respectively. |
Restructuring_Charges
Restructuring Charges | 6 Months Ended | |||||||||||
Aug. 02, 2014 | ||||||||||||
Restructuring Charges [Abstract] | ' | |||||||||||
Restructuring Charges | ' | |||||||||||
Restructuring Charges | ||||||||||||
During the first quarter of fiscal 2014, the Company implemented plans to streamline its structure and reduce expenses in both Europe and North America. During the second quarter of fiscal 2014, the Company expanded these plans to include the consolidation and streamlining of certain operations in Europe and Asia. There were no restructuring charges incurred during the three and six months ended August 2, 2014 as the actions under these plans were substantially completed during fiscal 2014. The Company does not expect significant future cash-related severance and lease termination charges related to these plans to be incurred during the remainder of fiscal 2015. During the three and six months ended August 3, 2013, the Company incurred restructuring charges of $6.1 million and $8.5 million, respectively, related primarily to severance, impairment and lease termination costs. As of August 2, 2014, the Company had a balance of approximately $1.8 million in accrued expenses for amounts expected to be paid during the remainder of fiscal 2015. At February 1, 2014, the Company had a balance of approximately $4.6 million in accrued expenses related to these restructuring activities. | ||||||||||||
The following table summarizes the components of the restructuring activities during the fiscal year ended February 1, 2014 and six months ended August 2, 2014 (in thousands): | ||||||||||||
Severance | Impairment and Lease Termination | Total | ||||||||||
Balance at February 2, 2013 | $ | — | $ | — | $ | — | ||||||
Charges to operations | 9,206 | 3,236 | 12,442 | |||||||||
Non-cash write-offs | — | (1,717 | ) | (1,717 | ) | |||||||
Cash payments | (4,567 | ) | (1,492 | ) | (6,059 | ) | ||||||
Foreign currency and other adjustments | (61 | ) | (27 | ) | (88 | ) | ||||||
Balance at February 1, 2014 | $ | 4,578 | $ | — | $ | 4,578 | ||||||
Cash payments | (1,892 | ) | — | (1,892 | ) | |||||||
Foreign currency and other adjustments | (846 | ) | — | (846 | ) | |||||||
Balance at August 2, 2014 | $ | 1,840 | $ | — | $ | 1,840 | ||||||
Income_Taxes
Income Taxes | 6 Months Ended |
Aug. 02, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
Income tax expense for the interim periods was computed using the effective tax rate estimated to be applicable for the full fiscal year. The Company’s effective income tax rate increased to 35.1% for the six months ended August 2, 2014 from 33.0% for the six months ended August 3, 2013. | |
The Company accrues an amount for its estimate of additional income tax liability which the Company, more likely than not, could incur as a result of the ultimate resolution of income tax audits (“uncertain tax positions”). The Company reviews and updates the estimates used in the accrual for uncertain tax positions as more definitive information becomes available from taxing authorities, upon completion of tax audits, upon expiration of statutes of limitation, or upon occurrence of other events. | |
The Company had aggregate accruals for uncertain tax positions, including penalties and interest, of $12.0 million and $11.4 million as of August 2, 2014 and February 1, 2014, respectively. The change in the accrual balance from February 1, 2014 to August 2, 2014 resulted from the completion of tax audits during the six months ended August 2, 2014. |
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment Information | ||||||||||||||||
The Company’s businesses are grouped into five reportable segments for management and internal financial reporting purposes: North American Retail, Europe, Asia, North American Wholesale and Licensing. Management evaluates segment performance based primarily on revenues and earnings (loss) from operations before restructuring charges, if any. The Company believes this segment reporting reflects how its five business segments are managed and each segment’s performance is evaluated by the Company’s chief operating decision maker to assess performance and make resource allocation decisions. The North American Retail segment includes the Company’s retail and e-commerce operations in North America and its retail operations in Central and South America. The Europe segment includes the Company’s wholesale, retail and e-commerce operations in Europe and the Middle East. The Asia segment includes the Company’s wholesale, retail and e-commerce operations in Asia. The North American Wholesale segment includes the Company’s wholesale operations in North America and Central and South America. The Licensing segment includes the worldwide licensing operations of the Company. The business segment operating results exclude corporate overhead costs, which consist of shared costs of the organization, and restructuring charges. These costs are presented separately and generally include, among other things, the following unallocated corporate costs: accounting and finance, executive compensation, facilities, global advertising and marketing, human resources, information technology and legal. | ||||||||||||||||
Net revenue and earnings (loss) from operations are summarized as follows for the three and six months ended August 2, 2014 and August 3, 2013 (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
Aug 2, 2014 | Aug 3, 2013 | Aug 2, 2014 | Aug 3, 2013 | |||||||||||||
Net revenue: | ||||||||||||||||
North American Retail | $ | 244,000 | $ | 254,313 | $ | 472,344 | $ | 492,624 | ||||||||
Europe | 235,260 | 250,372 | 394,418 | 415,764 | ||||||||||||
Asia | 64,267 | 65,852 | 134,385 | 136,984 | ||||||||||||
North American Wholesale | 38,252 | 41,357 | 77,560 | 85,186 | ||||||||||||
Licensing | 26,792 | 27,118 | 52,405 | 57,368 | ||||||||||||
Total net revenue | $ | 608,571 | $ | 639,012 | $ | 1,131,112 | $ | 1,187,926 | ||||||||
Earnings (loss) from operations: | ||||||||||||||||
North American Retail | $ | (4,662 | ) | $ | 10,390 | $ | (13,061 | ) | $ | 6,157 | ||||||
Europe | 24,513 | 39,275 | 17,881 | 34,057 | ||||||||||||
Asia | 2,264 | 5,039 | 5,617 | 12,003 | ||||||||||||
North American Wholesale | 5,167 | 8,478 | 12,920 | 17,127 | ||||||||||||
Licensing | 24,909 | 25,101 | 47,630 | 51,305 | ||||||||||||
Corporate Overhead | (22,333 | ) | (21,374 | ) | (43,106 | ) | (40,078 | ) | ||||||||
Restructuring Charges | — | (6,129 | ) | — | (8,466 | ) | ||||||||||
Total earnings from operations | $ | 29,858 | $ | 60,780 | $ | 27,881 | $ | 72,105 | ||||||||
Due to the seasonal nature of the Company’s business segments, the above net revenue and operating results are not necessarily indicative of the results that may be expected for the full fiscal year. Restructuring charges incurred during the three and six months ended August 3, 2013 related to plans to streamline and consolidate the Company’s operations and reduce expenses in North America, Europe and Asia. Refer to Note 6 for more information regarding these restructuring charges. |
Borrowings_and_Capital_Lease_O
Borrowings and Capital Lease Obligations | 6 Months Ended | |||||||
Aug. 02, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Borrowings and Capital Lease Obligations | ' | |||||||
Borrowings and Capital Lease Obligations | ||||||||
Borrowings and capital lease obligations are summarized as follows (in thousands): | ||||||||
Aug 2, 2014 | Feb 1, 2014 | |||||||
European capital lease, maturing quarterly through 2016 | $ | 7,294 | $ | 8,637 | ||||
Other | 1,438 | 3,103 | ||||||
8,732 | 11,740 | |||||||
Less current installments | 1,997 | 4,160 | ||||||
Long-term capital lease obligations and other debt | $ | 6,735 | $ | 7,580 | ||||
Capital Lease | ||||||||
The Company entered into a capital lease in December 2005 for a building in Florence, Italy. As of August 2, 2014, the capital lease obligation was $7.3 million. The Company entered into a separate interest rate swap agreement designated as a non-hedging instrument that resulted in a swap fixed rate of 3.55%. This interest rate swap agreement matures in 2016 and converts the nature of the capital lease obligation from Euribor floating-rate debt to fixed-rate debt. The fair value of the interest rate swap liability as of August 2, 2014 was approximately $0.4 million. | ||||||||
Credit Facilities | ||||||||
On July 6, 2011, the Company entered into a five-year senior secured revolving credit facility with JPMorgan Chase Bank, N.A., Bank of America, N.A. and the other lenders party thereto (the “Credit Facility”) which provided for a $200 million revolving multicurrency line of credit. The Credit Facility is available for direct borrowings and the issuance of letters of credit, subject to certain letters of credit sublimits. It may be used for working capital and other general corporate purposes. | ||||||||
On August 31, 2012, the Company increased its borrowing capacity under the Credit Facility from $200 million to $300 million by exercising the accordion feature in the Credit Facility pursuant to a Lender Joinder Agreement with the lenders party thereto. Also on August 31, 2012, the Company entered into an Amendment to the Credit Facility with the lenders party thereto to provide for (i) greater flexibility in certain of the Company’s covenants under the Credit Facility and (ii) access to a new $100 million accordion feature, subject to certain conditions and the willingness of existing or new lenders to assume such increased amount. As of August 2, 2014, the Company had $1.7 million in outstanding standby letters of credit, no outstanding documentary letters of credit and no outstanding borrowings under the Credit Facility. | ||||||||
The Company, through its European subsidiaries, maintains short-term uncommitted borrowing agreements, primarily for working capital purposes, with various banks in Europe. The majority of the borrowings under these agreements are secured by specific accounts receivable balances. Based on the applicable accounts receivable balances as of August 2, 2014, the Company could have borrowed up to $112.8 million under these agreements. As of August 2, 2014, the Company had no outstanding borrowings and $1.6 million in outstanding documentary letters of credit under these agreements. The agreements are denominated primarily in euros and provide for annual interest rates ranging from 0.5% to 3.0%. The maturities of any short-term borrowings under these arrangements are generally linked to the credit terms of the underlying accounts receivable that secure the borrowings. With the exception of one facility for up to $47.0 million that has a minimum net equity requirement, there are no other financial ratio covenants. | ||||||||
Other | ||||||||
From time-to-time, the Company will obtain other financing in foreign countries for working capital to finance its local operations. |
ShareBased_Compensation
Share-Based Compensation | 6 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Share-Based Compensation | ' | |||||||||||||||
Share-Based Compensation | ||||||||||||||||
The following table summarizes the share-based compensation expense recognized under all of the Company’s stock plans during the three and six months ended August 2, 2014 and August 3, 2013 (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
Aug 2, 2014 | Aug 3, 2013 | Aug 2, 2014 | Aug 3, 2013 | |||||||||||||
Stock options | $ | 620 | $ | 684 | $ | 1,076 | $ | 1,257 | ||||||||
Nonvested stock awards/units | 3,439 | 2,994 | 6,377 | 4,599 | ||||||||||||
Employee Stock Purchase Plan | 97 | 73 | 160 | 143 | ||||||||||||
Total share-based compensation expense | $ | 4,156 | $ | 3,751 | $ | 7,613 | $ | 5,999 | ||||||||
Unrecognized compensation cost, adjusted for estimated forfeitures, related to nonvested stock options and nonvested stock awards/units totaled approximately $4.5 million and $23.9 million, respectively, as of August 2, 2014. This cost is expected to be recognized over a weighted average period of 1.7 years. The weighted average fair values of stock options granted during the six months ended August 2, 2014 and August 3, 2013 were $6.23 and $6.05, respectively. | ||||||||||||||||
Grants | ||||||||||||||||
On April 2, 2014, the Company made an annual grant of 365,600 stock options and 301,200 nonvested stock awards/units to its employees. On April 3, 2013, the Company made an annual grant of 416,500 stock options and 408,400 nonvested stock awards/units to its employees. | ||||||||||||||||
Performance Awards | ||||||||||||||||
On July 11, 2013, the Company granted 100,000 nonvested stock units to Paul Marciano, the Company’s Chief Executive Officer and Vice Chairman of the Board, in connection with an employment agreement entered into between the Company and Mr. Marciano. The nonvested stock units had an initial vesting period of seven months followed by two annual vesting periods, which were subject to the achievement of performance-based vesting conditions for the last three quarters of fiscal 2014 and continued service vesting conditions through the vesting periods. The Company also granted a target of 143,700 nonvested stock units to Mr. Marciano, of which approximately 84% are expected to vest based on the achievement of performance-based conditions for the last three quarters of fiscal 2014 subject to continued service vesting conditions through the vesting date. Such shares are scheduled to vest on February 1, 2016. | ||||||||||||||||
On April 8, 2014, the Company granted 100,000 nonvested stock units to Mr. Marciano which have an initial vesting period of ten months followed by two annual vesting periods, subject to the achievement of performance-based vesting conditions for fiscal 2015 and continued service vesting conditions through the vesting periods. The Company also granted a target of 159,700 nonvested stock units to Mr. Marciano on April 8, 2014. The number of shares that will ultimately vest will equal 0% to 150% of the target number of shares, subject to the achievement of performance-based vesting conditions for fiscal 2015 and continued service vesting conditions through the vesting date. Such shares are scheduled to vest on January 31, 2017. |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended |
Aug. 02, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
The Company and its subsidiaries periodically enter into transactions with other entities or individuals that are considered related parties, including certain transactions with entities affiliated with trusts for the respective benefit of Paul Marciano, who is an executive of the Company, Maurice Marciano, Chairman of the Board, Armand Marciano, their brother and former executive of the Company, and certain of their children (the “Marciano Trusts”). | |
Leases | |
The Company leases warehouse and administrative facilities, including the Company’s corporate headquarters in Los Angeles, California, from partnerships affiliated with the Marciano Trusts and certain of their affiliates. There were four of these leases in effect at August 2, 2014 with expiration dates ranging from 2015 to 2020. | |
Aggregate rent and property tax expense under these related party leases was $2.9 million for each of the six months ended August 2, 2014 and August 3, 2013. The Company believes the related party lease terms have not been significantly affected by the fact that the Company and the lessors are related. | |
Aircraft Arrangements | |
The Company periodically charters aircraft owned by MPM Financial, LLC (“MPM Financial”), an entity affiliated with the Marciano Trusts, through MPM Financial and independent third party management companies contracted by MPM Financial to manage its aircraft. Under an informal arrangement with MPM Financial and the third party management companies, the Company has chartered, and may from time-to-time continue to charter, aircraft owned by MPM Financial at a discount from the third party management companies’ preferred customer hourly charter rates. The total fees paid under these arrangements for the six months ended August 2, 2014 were approximately $0.9 million. During the six months ended August 3, 2013, the total fees paid under these arrangements were minimal. | |
Consulting Arrangement | |
After serving for over 30 years as an executive and leader for Guess?, Inc., co-founder Maurice Marciano elected to retire from his position as executive Chairman of the Board and as an employee of the Company upon the expiration of his employment agreement on January 28, 2012. Mr. Marciano continues to serve the Company as its non-executive Chairman of the Board. In addition, under the terms of his previously existing employment agreement, the Company and Mr. Marciano entered into a two-year consulting agreement (the “Marciano Consulting Agreement”) under which Mr. Marciano provided certain consulting services to the Company, including advice and counsel to the Company’s Chief Executive Officer and other senior executives. The Marciano Consulting Agreement, which had a two-year term that commenced on January 28, 2012, provided for consulting fees of $500,000 per year and continued automobile use in a manner consistent with past practice. In January 2014, the Company extended the Marciano Consulting Agreement for an additional one-year period. Total expenses incurred with respect to the Marciano Consulting Agreement were approximately $0.3 million for each of the six months ended August 2, 2014 and August 3, 2013. | |
Other Transactions | |
From time-to-time, the Company utilizes a third-party agent named Harmony Collection, LLC to produce specific apparel products on behalf of the Company. Armand Marciano, brother of Maurice and Paul Marciano, is part owner and an executive of the parent company of Harmony Collection, LLC. The total payments made by the Company under this arrangement for the six months ended August 2, 2014 and August 3, 2013 were approximately $0.7 million and $0.8 million, respectively. The Company believes that the price and transaction terms have not been significantly affected by the relationship between the parties. | |
These related party disclosures should be read in conjunction with the disclosure concerning related party transactions in the Company’s Annual Report on Form 10-K for the year ended February 1, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Aug. 02, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Leases | |
The Company leases its showrooms, advertising, licensing, sales and merchandising offices, remote distribution and warehousing facilities and retail and factory outlet store locations under operating lease agreements expiring on various dates through September 2031. Some of these leases require the Company to make periodic payments for property taxes, utilities and common area operating expenses. Certain retail store leases provide for rents based upon the minimum annual rental amount and a percentage of annual sales volume, generally ranging from 2% to 12%, when specific sales volumes are exceeded. Some leases include lease incentives, rent abatements and fixed rent escalations, which are amortized and recorded over the initial lease term on a straight-line basis. The Company also leases some of its equipment under operating lease agreements expiring at various dates through December 2018. As discussed in further detail in Note 9, the Company leases a building in Florence, Italy under a capital lease. | |
In March 2014, the Company amended its lease with respect to its primary U.S. distribution center based in Louisville, Kentucky to extend the term for an additional ten years, to 2024. The amendment also provides for two extension options for an additional period of five years each. | |
Litigation | |
On May 6, 2009, Gucci America, Inc. filed a complaint in the U.S. District Court for the Southern District of New York against Guess?, Inc. and certain third-party licensees for the Company asserting, among other things, trademark and trade dress law violations and unfair competition. The complaint sought injunctive relief, compensatory damages, including treble damages, and certain other relief. Complaints similar to those in the above action have also been filed by Gucci entities against the Company and certain of its subsidiaries in the Court of Milan, Italy, the Court of Paris, France and the Intermediate People’s Court of Nanjing, China. The three week bench trial in the U.S. matter concluded on April 19, 2012, with the court issuing a preliminary ruling on May 21, 2012 and a final ruling on July 19, 2012. Although the plaintiff was seeking compensation in the U.S. matter in the form of damages of $26 million and an accounting of profits of $99 million, the final ruling provided for monetary damages of $2.3 million against the Company and $2.3 million against certain of its licensees. The court also granted narrow injunctions in favor of the plaintiff for certain of the claimed infringements. On August 20, 2012, the appeal period expired without any party having filed an appeal, rendering the judgment final. On May 2, 2013, the Court of Milan ruled in favor of the Company in the Milan, Italy matter. In the ruling, the Court rejected all of the plaintiff’s claims and ordered the cancellation of three of the plaintiff’s Italian and four of the plaintiff’s European Community trademark registrations. On June 10, 2013, the plaintiff appealed the Court’s ruling in the Milan matter. In the China matter, the Intermediate People’s Court of Nanjing, China issued a ruling on November 8, 2013 granting an injunction in favor of the plaintiff for certain of the claimed infringements on handbags and small leather goods and awarding the plaintiff statutory damages in the amount of approximately $80,000. The Company strongly disagrees with the Court’s decision and has appealed the ruling. The judgment in the China matter is stayed pending the appeal, which was heard in May 2014. The France matter in the Court of Paris is currently scheduled to be heard in September 2014. | |
On August 25, 2006, Franchez Isaguirre, a former employee of the Company, filed a complaint in the Superior Court of California, County of Los Angeles alleging violations by the Company of California wage and hour laws. The complaint was subsequently amended, adding a second former employee as an additional named party. The plaintiffs purport to represent a class of similarly situated employees in California who allegedly had been injured by not being provided adequate meal and rest breaks. The complaint seeks unspecified compensatory damages, statutory penalties, attorney’s fees and injunctive and declaratory relief. On June 9, 2009, the Court certified the class but immediately stayed the case pending the resolution of a separate California Supreme Court case on the standards of class treatment for meal and rest break claims. Following the Supreme Court ruling, the Superior Court denied the Company’s motions to decertify the class and to narrow the class in January 2013 and June 2013, respectively. The Company subsequently petitioned to have the Court’s decision not to narrow the class definition reviewed. That petition was ultimately denied by the California Supreme Court in April 2014. No trial date has been set. | |
Although the Company believes that it has a strong position and will continue to vigorously defend each of these remaining matters, it is unable to predict with certainty whether or not these efforts will ultimately be successful or whether the outcomes will have a material impact on the Company’s financial position or results of operations. | |
The Company is also involved in various other claims and other matters incidental to the Company’s business, the resolution of which is not expected to have a material adverse effect on the Company’s financial position or results of operations. No material amounts were accrued as of August 2, 2014 or February 1, 2014 related to any of the Company’s legal proceedings. |
Supplemental_Executive_Retirem
Supplemental Executive Retirement Plan | 6 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Supplemental Executive Retirement Plan | ' | |||||||||||||||
Supplemental Executive Retirement Plan | ||||||||||||||||
The components of net periodic pension cost for the three and six months ended August 2, 2014 and August 3, 2013 were as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
Aug 2, 2014 | Aug 3, 2013 | Aug 2, 2014 | Aug 3, 2013 | |||||||||||||
Interest cost | $ | 572 | $ | 586 | $ | 1,144 | $ | 1,172 | ||||||||
Net amortization of unrecognized prior service (credit) cost | (58 | ) | 156 | (116 | ) | 311 | ||||||||||
Net amortization of actuarial losses | 235 | 277 | 469 | 554 | ||||||||||||
Net periodic defined benefit pension cost | $ | 749 | $ | 1,019 | $ | 1,497 | $ | 2,037 | ||||||||
In July 2013, the Company amended the SERP to limit the amount of eligible wages under the plan that count toward the SERP benefit for the active participant. As a result, the projected benefit obligation and unrecognized prior service cost were reduced by $4.5 million during fiscal 2014. | ||||||||||||||||
As a non-qualified pension plan, no dedicated funding of the SERP is required; however, the Company has made, and may continue to make, periodic payments into insurance policies held in a rabbi trust to fund the expected obligations arising under the non-qualified SERP. The amount of any future payments into the insurance policies may vary, depending on any changes to the estimates of final annual compensation levels and investment performance of the trust. The cash surrender values of the insurance policies were $53.6 million and $51.4 million as of August 2, 2014 and February 1, 2014, respectively, and were included in other assets in the Company’s condensed consolidated balance sheets. As a result of changes in the value of the insurance policy investments, the Company recorded unrealized gains of $0.7 million and $2.2 million in other income during the three and six months ended August 2, 2014, respectively, and unrealized gains of $1.1 million and $2.6 million in other income during the three and six months ended August 3, 2013, respectively. The projected benefit obligation was $55.6 million and $54.7 million as of August 2, 2014 and February 1, 2014, respectively, and was included in accrued expenses and other long-term liabilities in the Company’s condensed consolidated balance sheets depending on the expected timing of payments. SERP benefit payments of $0.3 million were made during the three and six months ended August 2, 2014. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||||||||||||||||||||||||||
Aug. 02, 2014 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||||||
Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows: | |||||||||||||||||||||||||||||||||
Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that can be accessed at the measurement date. | |||||||||||||||||||||||||||||||||
Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e. interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). | |||||||||||||||||||||||||||||||||
Level 3—Unobservable inputs that reflect assumptions about what market participants would use in pricing the asset or liability. These inputs would be based on the best information available, including the Company’s own data. | |||||||||||||||||||||||||||||||||
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of August 2, 2014 and February 1, 2014 (in thousands): | |||||||||||||||||||||||||||||||||
Fair Value Measurements at Aug 2, 2014 | Fair Value Measurements at Feb 1, 2014 | ||||||||||||||||||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Foreign exchange currency contracts | $ | — | $ | 3,248 | $ | — | $ | 3,248 | $ | — | $ | 2,116 | $ | — | $ | 2,116 | |||||||||||||||||
Available-for-sale securities | 5,066 | — | — | 5,066 | 5,732 | — | — | 5,732 | |||||||||||||||||||||||||
Total | $ | 5,066 | $ | 3,248 | $ | — | $ | 8,314 | $ | 5,732 | $ | 2,116 | $ | — | $ | 7,848 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Foreign exchange currency contracts | $ | — | $ | 342 | $ | — | $ | 342 | $ | — | $ | 1,712 | $ | — | $ | 1,712 | |||||||||||||||||
Interest rate swap | — | 440 | — | 440 | — | 581 | — | 581 | |||||||||||||||||||||||||
Deferred compensation obligations | — | 8,305 | — | 8,305 | — | 7,498 | — | 7,498 | |||||||||||||||||||||||||
Total | $ | — | $ | 9,087 | $ | — | $ | 9,087 | $ | — | $ | 9,791 | $ | — | $ | 9,791 | |||||||||||||||||
There were no transfers of financial instruments between the three levels of fair value hierarchy during the six months ended August 2, 2014 or during the year ended February 1, 2014. | |||||||||||||||||||||||||||||||||
The fair values of the Company’s available-for-sale securities are based on quoted prices. The fair value of the interest rate swaps are based upon inputs corroborated by observable market data. Foreign exchange forward contracts are entered into by the Company principally to hedge the future payment of inventory and intercompany transactions by non-U.S. subsidiaries. Periodically, the Company may also use foreign currency forward contracts to hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries. The fair values of the Company’s foreign exchange forward contracts are based on quoted foreign exchange forward rates at the reporting date. Deferred compensation obligations to employees are adjusted based on changes in the fair value of the underlying employee-directed investments. Fair value of these obligations is based upon inputs corroborated by observable market data. | |||||||||||||||||||||||||||||||||
Available-for-sale securities are recorded at fair value and are included in short-term investments and other assets in the accompanying condensed consolidated balance sheets depending on their respective maturity dates. At August 2, 2014, available-for-sale securities consisted of $5.0 million of corporate bonds which mature in September 2014 and $0.1 million of marketable equity securities. During the six months ended August 2, 2014, the Company received proceeds of $0.6 million from the sale of marketable equity securities which were classified as available-for-sale securities. The sale of marketable equity securities was made during the three months ended May 4, 2013. The cost of securities sold was based on the specific identification method. Gains recognized during the six months ended August 2, 2014 were $0.1 million as a result of this sale and were included in other income and expense. Unrealized gains (losses), net of taxes, are included as a component of stockholders’ equity and comprehensive income (loss). The accumulated unrealized gains, net of taxes, included in accumulated other comprehensive income (loss) related to available-for-sale securities owned by the Company at August 2, 2014 were minimal. | |||||||||||||||||||||||||||||||||
At February 1, 2014, available-for-sale securities consisted of $5.1 million of corporate bonds and $0.6 million of marketable equity securities. The accumulated unrealized gains, net of taxes, included in accumulated other comprehensive income (loss) related to available-for-sale securities owned by the Company at February 1, 2014 were $0.1 million. | |||||||||||||||||||||||||||||||||
The carrying amount of the Company’s remaining financial instruments, which principally include cash and cash equivalents, trade receivables, accounts payable and accrued expenses, approximates fair value due to the relatively short maturity of such instruments. The fair values of the Company’s debt instruments (see Note 9) are based on the amount of future cash flows associated with each instrument discounted using the Company’s incremental borrowing rate. At August 2, 2014 and February 1, 2014, the carrying value of all financial instruments was not materially different from fair value, as the interest rates on variable-rate debt including the capital lease obligation approximated rates currently available to the Company. | |||||||||||||||||||||||||||||||||
Long-Lived Assets | |||||||||||||||||||||||||||||||||
Long-lived assets, such as property and equipment, and purchased intangibles subject to amortization, are reviewed for impairment quarterly or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company considers each individual store as an asset group for impairment testing, which is the lowest level at which individual cash flows can be identified. The asset group includes store leasehold improvements, furniture, fixtures and equipment, computer hardware and software and certain long-term security deposits and lease acquisition costs. The Company reviews retail stores for impairment risk once the locations have been opened for at least one year, or sooner as changes in circumstances require. The Company believes that waiting one year allows a store to reach a maturity level where a more comprehensive analysis of financial performance can be performed. | |||||||||||||||||||||||||||||||||
An asset is considered to be impaired if the Company determines that the carrying value may not be recoverable based upon its assessment of the asset’s ability to continue to generate earnings from operations and positive cash flow in future periods or if significant changes in the Company’s strategic business objectives and utilization of the assets occurred. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the estimated fair value, which is determined based on discounted future cash flows. The impairment loss calculations require management to apply judgment in estimating future cash flows and the discount rates that reflect the risk inherent in future cash flows. Future expected cash flows for store assets are based on management’s estimates of future cash flows over the remaining lease period or expected life, if shorter. The Company considers historical trends, expected future business trends and other factors when estimating each store’s future cash flow. The Company also considers factors such as: the local environment for each store location, including mall traffic and competition; the Company’s ability to successfully implement strategic initiatives; and the ability to control variable costs such as cost of sales and payroll and, in some cases, renegotiate lease costs. The estimated cash flows used for this nonrecurring fair value measurement are considered a Level 3 input as defined above. If actual results are not consistent with the assumptions and judgments used in estimating future cash flows and asset fair values, there may be additional exposure to future impairment losses that could be material to the Company’s results of operations. | |||||||||||||||||||||||||||||||||
The Company recorded impairment charges of $4.6 million and $4.8 million during the three and six months ended August 2, 2014, respectively, and $2.1 million and $3.1 million during the three and six months ended August 3, 2013, respectively, related primarily to the full impairment of certain under-performing retail stores in North America and Europe. These impairment charges, which exclude impairment charges incurred during the three and six months ended August 3, 2013 related to restructuring activities, were included in selling, general and administrative expenses in the Company’s condensed consolidated statements of income for each of the respective periods. Refer to Note 6 for more information regarding impairment charges related to restructuring activities. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 6 Months Ended | |||||||||||||||||
Aug. 02, 2014 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||
Hedging Strategy | ||||||||||||||||||
The Company operates in foreign countries, which exposes it to market risk associated with foreign currency exchange rate fluctuations. The Company has entered into certain forward contracts to hedge the risk of foreign currency rate fluctuations. The Company has elected to apply the hedge accounting rules in accordance with authoritative guidance for certain of these hedges. | ||||||||||||||||||
The Company’s primary objective is to hedge the variability in forecasted cash flows due to the foreign currency risk. Various transactions that occur primarily in Europe, Canada and South Korea are denominated in U.S. dollars and British pounds and thus are exposed to earnings risk as a result of exchange rate fluctuations when converted to their functional currencies. These types of transactions include U.S. dollar denominated purchases of merchandise and U.S. dollar and British pound denominated intercompany liabilities. In addition, certain operating expenses and tax liabilities are denominated in Swiss francs and are exposed to earnings risk as a result of exchange rate fluctuations when converted to the functional currency. The Company enters into derivative financial instruments, including forward exchange contracts, to offset some but not all of the exchange risk on certain of these anticipated foreign currency transactions. | ||||||||||||||||||
Periodically, the Company may also use foreign currency forward contracts to hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries. | ||||||||||||||||||
The impact of the credit risk of the counterparties to the derivative contracts is considered in determining the fair value of the foreign currency forward contracts. As of August 2, 2014, credit risk has not had a significant effect on the fair value of the Company’s foreign currency contracts. | ||||||||||||||||||
The Company also has interest rate swap agreements, which are not designated as hedges for accounting purposes, to effectively convert its floating-rate debt to a fixed-rate basis. The principal objective of these contracts is to eliminate or reduce the variability of the cash flows in interest payments associated with the Company’s variable-rate capital lease obligation, thus reducing the impact of interest rate changes on future interest payment cash flows. Refer to Note 9 for further information. | ||||||||||||||||||
Hedge Accounting Policy | ||||||||||||||||||
U.S. dollar forward contracts are used to hedge forecasted merchandise purchases over specific months. Changes in the fair value of these U.S. dollar forward contracts, designated as cash flow hedges, are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in cost of product sales in the period which approximates the time the hedged merchandise inventory is sold. The Company also hedges forecasted intercompany royalties over specific months. Changes in the fair value of these U.S. dollar forward contracts, designated as cash flow hedges, are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in other income and expense in the period in which the royalty expense is incurred. | ||||||||||||||||||
U.S. dollar forward contracts are also used to hedge the net investments of certain of the Company’s international subsidiaries over specific months. Changes in the fair value of these U.S. dollar forward contracts, designated as net investment hedges, are recorded in foreign currency translation adjustment as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are not recognized in earnings until the sale or liquidation of the hedged net investment. | ||||||||||||||||||
The Company also has foreign currency contracts that are not designated as hedging instruments for accounting purposes. Changes in fair value of foreign currency contracts not designated as hedging instruments are reported in net earnings as part of other income and expense. | ||||||||||||||||||
Summary of Derivative Instruments | ||||||||||||||||||
The fair value of derivative instruments in the condensed consolidated balance sheets as of August 2, 2014 and February 1, 2014 was as follows (in thousands): | ||||||||||||||||||
Derivative | Fair Value at | Fair Value at | ||||||||||||||||
Balance Sheet | Aug 2, 2014 | Feb 1, 2014 | ||||||||||||||||
Location | ||||||||||||||||||
ASSETS: | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Foreign exchange currency contracts: | ||||||||||||||||||
Cash flow hedges | Other current assets | $ | 1,430 | $ | 977 | |||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign exchange currency contracts | Other current assets | 1,818 | 1,139 | |||||||||||||||
Total | $ | 3,248 | $ | 2,116 | ||||||||||||||
LIABILITIES: | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Foreign exchange currency contracts: | ||||||||||||||||||
Cash flow hedges | Accrued expenses | $ | 237 | $ | 672 | |||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign exchange currency contracts | Accrued expenses | 105 | 1,040 | |||||||||||||||
Interest rate swaps | Other long-term liabilities | 440 | 581 | |||||||||||||||
Total derivatives not designated as hedging instruments | 545 | 1,621 | ||||||||||||||||
Total | $ | 782 | $ | 2,293 | ||||||||||||||
Derivatives Designated as Hedging Instruments | ||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||
During the six months ended August 2, 2014, the Company purchased U.S. dollar forward contracts in Canada and Europe totaling US$40.4 million and US$38.2 million, respectively, to hedge forecasted merchandise purchases and intercompany royalties that were designated as cash flow hedges. As of August 2, 2014, the Company had forward contracts outstanding for its European and Canadian operations of US$66.9 million and US$28.9 million, respectively, which are expected to mature over the next 13 months. | ||||||||||||||||||
The following table summarizes the gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings for the three and six months ended August 2, 2014 and August 3, 2013 (in thousands): | ||||||||||||||||||
Gain (Loss) | Location of | Gain (Loss) | ||||||||||||||||
Recognized in | Gain (Loss) | Reclassified from | ||||||||||||||||
OCI | Reclassified from | Accumulated OCI into | ||||||||||||||||
Accumulated OCI | Earnings | |||||||||||||||||
Three Months | Three Months | into Earnings(1) | Three Months | Three Months | ||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||
2-Aug-14 | 3-Aug-13 | 2-Aug-14 | 3-Aug-13 | |||||||||||||||
Derivatives designated as cash flow hedges: | ||||||||||||||||||
Foreign exchange currency contracts | $ | 1,866 | $ | 247 | Cost of sales | $ | (265 | ) | $ | 393 | ||||||||
Foreign exchange currency contracts | $ | 1 | $ | (20 | ) | Other income/expense | $ | (25 | ) | $ | 115 | |||||||
Gain (Loss) | Location of | Gain (Loss) | ||||||||||||||||
Recognized in | Gain (Loss) | Reclassified from | ||||||||||||||||
OCI | Reclassified from | Accumulated OCI into | ||||||||||||||||
Accumulated OCI | Earnings | |||||||||||||||||
Six Months | Six Months | into Earnings(1) | Six Months | Six Months | ||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||
2-Aug-14 | 3-Aug-13 | 2-Aug-14 | 3-Aug-13 | |||||||||||||||
Derivatives designated as cash flow hedges: | ||||||||||||||||||
Foreign exchange currency contracts | $ | (706 | ) | $ | 4,479 | Cost of sales | $ | (759 | ) | $ | 872 | |||||||
Foreign exchange currency contracts | $ | (106 | ) | $ | 418 | Other income/expense | $ | (56 | ) | $ | 94 | |||||||
__________________________________ | ||||||||||||||||||
-1 | The ineffective portion was immaterial during the three and six months ended August 2, 2014 and August 3, 2013 and was recorded in net earnings and included in interest income/expense. | |||||||||||||||||
As of August 2, 2014, accumulated other comprehensive income (loss) included a net unrealized gain of approximately $0.4 million, net of tax, of which $0.3 million will be recognized in cost of product sales or other income over the following 12 months, at the then current values on a pre-tax basis, which can be different than the current quarter-end values. | ||||||||||||||||||
The following table summarizes net after-tax derivative activity recorded in accumulated other comprehensive income (loss) (in thousands): | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
Aug 2, | Aug 3, | Aug 2, | Aug 3, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Beginning balance gain (loss) | $ | (1,667 | ) | $ | 1,918 | $ | (113 | ) | $ | (1,782 | ) | |||||||
Net gains (losses) from changes in cash flow hedges | 1,352 | 64 | (706 | ) | 4,152 | |||||||||||||
Net (gains) losses reclassified to earnings | 681 | (424 | ) | 1,185 | (812 | ) | ||||||||||||
Ending balance gain | $ | 366 | $ | 1,558 | $ | 366 | $ | 1,558 | ||||||||||
At February 1, 2014, the Company had forward contracts outstanding for its European and Canadian operations of US$87.1 million and US$15.2 million, respectively, that were designated as cash flow hedges. | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||
As of August 2, 2014, the Company had euro foreign currency contracts to purchase US$109.4 million expected to mature over the next 13 months and Canadian dollar foreign currency contracts to purchase US$11.5 million expected to mature over the next four months. | ||||||||||||||||||
The following table summarizes the gains (losses) before taxes recognized on the derivative instruments not designated as hedging instruments in other income and expense for the three and six months ended August 2, 2014 and August 3, 2013 (in thousands): | ||||||||||||||||||
Location of | Gain (Loss) | Gain | ||||||||||||||||
Gain (Loss) | Recognized in Earnings | Recognized in Earnings | ||||||||||||||||
Recognized in | ||||||||||||||||||
Earnings | Three Months | Three Months | Six Months | Six Months | ||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||
2-Aug-14 | 3-Aug-13 | 2-Aug-14 | 3-Aug-13 | |||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign exchange currency contracts | Other income/expense | $ | 3,984 | $ | (727 | ) | $ | 1,195 | $ | 3,049 | ||||||||
Interest rate swaps | Other income/expense | $ | 57 | $ | 118 | $ | 132 | $ | 196 | |||||||||
At February 1, 2014, the Company had euro foreign currency contracts to purchase US$111.8 million and Canadian dollar foreign currency contracts to purchase US$13.8 million. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Aug. 02, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On August 27, 2014, the Company announced a regular quarterly cash dividend of $0.225 per share on the Company’s common stock. The cash dividend will be paid on September 26, 2014 to shareholders of record as of the close of business on September 10, 2014. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 6 Months Ended |
Aug. 02, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
New Accounting Guidance | ' |
New Accounting Guidance | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which requires that an unrecognized tax benefit be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar loss or a tax credit carryforward, if specific criteria are met. The Company adopted this guidance effective February 2, 2014. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. | |
In April 2014, the FASB issued authoritative guidance which raises the threshold for disposals to qualify as discontinued operations. Under this new guidance, a discontinued operation is (1) a component of an entity or group of components that have been disposed of or are classified as held for sale and represent a strategic shift that has or will have a major effect on an entity’s operations and financial results, or (2) an acquired business that is classified as held for sale on the acquisition date. This guidance also requires expanded or new disclosures for discontinued operations, individually material disposals that do not meet the definition of a discontinued operation, an entity’s continuing involvement with a discontinued operation following disposal and retained equity method investments in a discontinued operation. This guidance is effective for fiscal periods beginning after December 15, 2014. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. | |
In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2016 and allows for either full retrospective or modified retrospective adoption. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. | |
In August 2014, the FASB issued authoritative guidance that requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern and requires additional disclosures if certain criteria are met. This guidance is effective for fiscal periods ending after December 15, 2016, with early adoption permitted. The adoption of this guidance is not expected to impact the Company’s consolidated financial statements or related disclosures. |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 6 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Computation of basic and diluted net earnings per common share attributable to common stockholders | ' | |||||||||||||||
The computation of basic and diluted net earnings per common share attributable to common stockholders is as follows (in thousands, except per share data): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
Aug 2, 2014 | Aug 3, 2013 | Aug 2, 2014 | Aug 3, 2013 | |||||||||||||
Net earnings attributable to Guess?, Inc. | $ | 21,954 | $ | 39,866 | $ | 19,853 | $ | 49,782 | ||||||||
Less net earnings attributable to nonvested restricted stockholders | 167 | 351 | 292 | 410 | ||||||||||||
Net earnings attributable to common stockholders | $ | 21,787 | $ | 39,515 | $ | 19,561 | $ | 49,372 | ||||||||
Weighted average common shares used in basic computations | 84,573 | 84,080 | 84,536 | 84,331 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options and restricted stock units | 226 | 267 | 229 | 232 | ||||||||||||
Weighted average common shares used in diluted computations | 84,799 | 84,347 | 84,765 | 84,563 | ||||||||||||
Net earnings per common share attributable to common stockholders: | ||||||||||||||||
Basic | $ | 0.26 | $ | 0.47 | $ | 0.23 | $ | 0.59 | ||||||||
Diluted | $ | 0.26 | $ | 0.47 | $ | 0.23 | $ | 0.58 | ||||||||
Stockholders_Equity_and_Redeem1
Stockholders' Equity and Redeemable Noncontrolling Interests (Tables) | 6 Months Ended | |||||||||||||||||||
Aug. 02, 2014 | ||||||||||||||||||||
Stockholders' Equity and Redeemable Noncontrolling Interests [Abstract] | ' | |||||||||||||||||||
Reconciliation of the total carrying amount of total stockholders' equity, Guess, Inc. stockholders' equity and stockholders' equity attributable to nonredeemable and redeemable noncontrolling interests | ' | |||||||||||||||||||
A reconciliation of the total carrying amount of total stockholders’ equity, Guess?, Inc. stockholders’ equity and stockholders’ equity attributable to nonredeemable and redeemable noncontrolling interests for the fiscal year ended February 1, 2014 and six months ended August 2, 2014 is as follows (in thousands): | ||||||||||||||||||||
Stockholders’ Equity | ||||||||||||||||||||
Guess?, Inc. | Nonredeemable | Total | Redeemable | |||||||||||||||||
Stockholders’ | Noncontrolling | Noncontrolling | ||||||||||||||||||
Equity | Interests | Interests | ||||||||||||||||||
Balance at February 2, 2013 | $ | 1,086,992 | $ | 13,876 | $ | 1,100,868 | $ | 3,144 | ||||||||||||
Net earnings | 153,434 | 4,277 | 157,711 | — | ||||||||||||||||
Foreign currency translation adjustment | (17,621 | ) | (804 | ) | (18,425 | ) | (104 | ) | ||||||||||||
Gain on derivative financial instruments designated as cash flow hedges, net of income tax of ($237) | 1,669 | — | 1,669 | — | ||||||||||||||||
Loss on marketable securities, net of income tax of $4 | (7 | ) | — | (7 | ) | — | ||||||||||||||
SERP plan amendment, prior service cost amortization and actuarial valuation gain (loss) and related amortization, net of income tax of ($2,963) | 4,619 | — | 4,619 | — | ||||||||||||||||
Issuance of common stock under stock compensation plans, net of tax effect | 2,404 | — | 2,404 | — | ||||||||||||||||
Issuance of stock under Employee Stock Purchase Plan | 980 | — | 980 | — | ||||||||||||||||
Share-based compensation | 13,949 | — | 13,949 | — | ||||||||||||||||
Dividends | (68,215 | ) | — | (68,215 | ) | — | ||||||||||||||
Share repurchases | (22,099 | ) | — | (22,099 | ) | — | ||||||||||||||
Noncontrolling interest capital contribution | — | — | — | 1,199 | ||||||||||||||||
Noncontrolling interest capital distribution | — | (1,877 | ) | (1,877 | ) | — | ||||||||||||||
Redeemable noncontrolling interest redemption value adjustment | (1,591 | ) | — | (1,591 | ) | 1,591 | ||||||||||||||
Balance at February 1, 2014 | $ | 1,154,514 | $ | 15,472 | $ | 1,169,986 | $ | 5,830 | ||||||||||||
Net earnings | 19,853 | 232 | 20,085 | — | ||||||||||||||||
Foreign currency translation adjustment | 2,425 | 117 | 2,542 | 65 | ||||||||||||||||
Gain on derivative financial instruments designated as cash flow hedges, net of income tax of $476 | 479 | — | 479 | — | ||||||||||||||||
Loss on marketable securities, net of income tax of $58 | (95 | ) | — | (95 | ) | — | ||||||||||||||
SERP prior service credit and actuarial valuation amortization, net of income tax of ($135) | 218 | — | 218 | — | ||||||||||||||||
Issuance of common stock under stock compensation plans, net of tax effect | (93 | ) | — | (93 | ) | — | ||||||||||||||
Issuance of stock under Employee Stock Purchase Plan | 635 | — | 635 | — | ||||||||||||||||
Share-based compensation | 7,613 | — | 7,613 | — | ||||||||||||||||
Dividends | (38,486 | ) | — | (38,486 | ) | — | ||||||||||||||
Redeemable noncontrolling interest redemption value adjustment | 427 | — | 427 | (427 | ) | |||||||||||||||
Balance at August 2, 2014 | $ | 1,147,490 | $ | 15,821 | $ | 1,163,311 | $ | 5,468 | ||||||||||||
Schedule of changes in accumulated other comprehensive income (loss) | ' | |||||||||||||||||||
The changes in accumulated other comprehensive income (loss), net of related income taxes, for the three and six months ended August 2, 2014 and August 3, 2013 are as follows (in thousands): | ||||||||||||||||||||
Three Months Ended Aug 2, 2014 | ||||||||||||||||||||
Foreign Currency Translation Adjustment | Derivative Financial Instruments Designated as Cash Flow Hedges | Marketable Securities | SERP | Total | ||||||||||||||||
Balance at May 3, 2014 | $ | 14,846 | $ | (1,667 | ) | $ | 33 | $ | (6,679 | ) | $ | 6,533 | ||||||||
Gains (losses) arising during the period | (19,424 | ) | 1,352 | (25 | ) | — | (18,097 | ) | ||||||||||||
Reclassification to net earnings for losses realized | — | 681 | — | 109 | 790 | |||||||||||||||
Net other comprehensive income (loss) | (19,424 | ) | 2,033 | (25 | ) | 109 | (17,307 | ) | ||||||||||||
Balance at August 2, 2014 | $ | (4,578 | ) | $ | 366 | $ | 8 | $ | (6,570 | ) | $ | (10,774 | ) | |||||||
Six Months Ended Aug 2, 2014 | ||||||||||||||||||||
Foreign Currency Translation Adjustment | Derivative Financial Instruments Designated as Cash Flow Hedges | Marketable Securities | SERP | Total | ||||||||||||||||
Balance at February 1, 2014 | $ | (7,003 | ) | $ | (113 | ) | $ | 103 | $ | (6,788 | ) | $ | (13,801 | ) | ||||||
Gains (losses) arising during the period | 2,425 | (706 | ) | (41 | ) | — | 1,678 | |||||||||||||
Reclassification to net earnings for (gains) losses realized | — | 1,185 | (54 | ) | 218 | 1,349 | ||||||||||||||
Net other comprehensive income (loss) | 2,425 | 479 | (95 | ) | 218 | 3,027 | ||||||||||||||
Balance at August 2, 2014 | $ | (4,578 | ) | $ | 366 | $ | 8 | $ | (6,570 | ) | $ | (10,774 | ) | |||||||
Three Months Ended Aug 3, 2013 | ||||||||||||||||||||
Foreign Currency Translation Adjustment | Derivative Financial Instruments Designated as Cash Flow Hedges | Marketable Securities | SERP | Total | ||||||||||||||||
Balance at May 4, 2013 | $ | (14,148 | ) | $ | 1,918 | $ | 169 | $ | (11,140 | ) | $ | (23,201 | ) | |||||||
Gains (losses) arising during the period | 2,951 | 64 | (81 | ) | 2,796 | 5,730 | ||||||||||||||
Reclassification to net earnings for (gains) losses realized | — | (424 | ) | — | 268 | (156 | ) | |||||||||||||
Net other comprehensive income (loss) | 2,951 | (360 | ) | (81 | ) | 3,064 | 5,574 | |||||||||||||
Balance at August 3, 2013 | $ | (11,197 | ) | $ | 1,558 | $ | 88 | $ | (8,076 | ) | $ | (17,627 | ) | |||||||
Six Months Ended Aug 3, 2013 | ||||||||||||||||||||
Foreign Currency Translation Adjustment | Derivative Financial Instruments Designated as Cash Flow Hedges | Marketable Securities | SERP | Total | ||||||||||||||||
Balance at February 2, 2013 | $ | 10,618 | $ | (1,782 | ) | $ | 110 | $ | (11,407 | ) | $ | (2,461 | ) | |||||||
Gains (losses) arising during the period | (21,815 | ) | 4,152 | (22 | ) | 2,796 | (14,889 | ) | ||||||||||||
Reclassification to net earnings for (gains) losses realized | — | (812 | ) | — | 535 | (277 | ) | |||||||||||||
Net other comprehensive income (loss) | (21,815 | ) | 3,340 | (22 | ) | 3,331 | (15,166 | ) | ||||||||||||
Balance at August 3, 2013 | $ | (11,197 | ) | $ | 1,558 | $ | 88 | $ | (8,076 | ) | $ | (17,627 | ) | |||||||
Reclassifications out of accumulated other comprehensive income (loss) | ' | |||||||||||||||||||
Details on reclassifications out of accumulated other comprehensive income (loss) to net earnings during the three and six months ended August 2, 2014 and August 3, 2013 are as follows (in thousands): | ||||||||||||||||||||
Three Months Ended | Six Months Ended | Location of | ||||||||||||||||||
(Gain) Loss | ||||||||||||||||||||
Reclassified from | ||||||||||||||||||||
Accumulated OCI | ||||||||||||||||||||
Aug 2, 2014 | 3-Aug-13 | Aug 2, 2014 | Aug 3, 2013 | into Earnings | ||||||||||||||||
Derivative financial instruments designated as cash flow hedges: | ||||||||||||||||||||
Foreign exchange currency contracts | $ | 265 | $ | (393 | ) | $ | 759 | $ | (872 | ) | Cost of sales | |||||||||
Foreign exchange currency contracts | 25 | (115 | ) | 56 | (94 | ) | Other income/expense | |||||||||||||
Less income tax effect | 391 | 84 | 370 | 154 | Income tax expense | |||||||||||||||
681 | (424 | ) | 1,185 | (812 | ) | |||||||||||||||
Marketable securities: | ||||||||||||||||||||
Available-for-sale securities | — | — | (87 | ) | — | Other income/expense | ||||||||||||||
Less income tax effect | — | — | 33 | — | Income tax expense | |||||||||||||||
— | — | (54 | ) | — | ||||||||||||||||
SERP: | ||||||||||||||||||||
Actuarial loss amortization | 235 | 277 | 469 | 554 | (1) | |||||||||||||||
Prior service (credit) cost amortization | (58 | ) | 156 | (116 | ) | 311 | (1) | |||||||||||||
Less income tax effect | (68 | ) | (165 | ) | (135 | ) | (330 | ) | Income tax expense | |||||||||||
109 | 268 | 218 | 535 | |||||||||||||||||
Total reclassifications during the period | $ | 790 | $ | (156 | ) | $ | 1,349 | $ | (277 | ) | ||||||||||
__________________________________ | ||||||||||||||||||||
-1 | These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. Refer to Note 13 for further information. |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 6 Months Ended | |||||||
Aug. 02, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Schedule of accounts receivable | ' | |||||||
Accounts receivable is summarized as follows (in thousands): | ||||||||
Aug 2, 2014 | Feb 1, 2014 | |||||||
Trade | $ | 258,446 | $ | 291,411 | ||||
Royalty | 8,629 | 16,372 | ||||||
Other | 5,172 | 8,174 | ||||||
272,247 | 315,957 | |||||||
Less allowance for doubtful accounts | 38,341 | 39,392 | ||||||
$ | 233,906 | $ | 276,565 | |||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Aug. 02, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of inventories | ' | |||||||
Inventories consist of the following (in thousands): | ||||||||
Aug 2, 2014 | Feb 1, 2014 | |||||||
Raw materials | $ | 14,778 | $ | 10,585 | ||||
Work in progress | 175 | 977 | ||||||
Finished goods | 377,434 | 339,337 | ||||||
$ | 392,387 | $ | 350,899 | |||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 6 Months Ended | |||||||||||
Aug. 02, 2014 | ||||||||||||
Restructuring Charges [Abstract] | ' | |||||||||||
Schedule of restructuring components and activity | ' | |||||||||||
The following table summarizes the components of the restructuring activities during the fiscal year ended February 1, 2014 and six months ended August 2, 2014 (in thousands): | ||||||||||||
Severance | Impairment and Lease Termination | Total | ||||||||||
Balance at February 2, 2013 | $ | — | $ | — | $ | — | ||||||
Charges to operations | 9,206 | 3,236 | 12,442 | |||||||||
Non-cash write-offs | — | (1,717 | ) | (1,717 | ) | |||||||
Cash payments | (4,567 | ) | (1,492 | ) | (6,059 | ) | ||||||
Foreign currency and other adjustments | (61 | ) | (27 | ) | (88 | ) | ||||||
Balance at February 1, 2014 | $ | 4,578 | $ | — | $ | 4,578 | ||||||
Cash payments | (1,892 | ) | — | (1,892 | ) | |||||||
Foreign currency and other adjustments | (846 | ) | — | (846 | ) | |||||||
Balance at August 2, 2014 | $ | 1,840 | $ | — | $ | 1,840 | ||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Summary of net revenue and earnings (loss) from operations | ' | |||||||||||||||
Net revenue and earnings (loss) from operations are summarized as follows for the three and six months ended August 2, 2014 and August 3, 2013 (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
Aug 2, 2014 | Aug 3, 2013 | Aug 2, 2014 | Aug 3, 2013 | |||||||||||||
Net revenue: | ||||||||||||||||
North American Retail | $ | 244,000 | $ | 254,313 | $ | 472,344 | $ | 492,624 | ||||||||
Europe | 235,260 | 250,372 | 394,418 | 415,764 | ||||||||||||
Asia | 64,267 | 65,852 | 134,385 | 136,984 | ||||||||||||
North American Wholesale | 38,252 | 41,357 | 77,560 | 85,186 | ||||||||||||
Licensing | 26,792 | 27,118 | 52,405 | 57,368 | ||||||||||||
Total net revenue | $ | 608,571 | $ | 639,012 | $ | 1,131,112 | $ | 1,187,926 | ||||||||
Earnings (loss) from operations: | ||||||||||||||||
North American Retail | $ | (4,662 | ) | $ | 10,390 | $ | (13,061 | ) | $ | 6,157 | ||||||
Europe | 24,513 | 39,275 | 17,881 | 34,057 | ||||||||||||
Asia | 2,264 | 5,039 | 5,617 | 12,003 | ||||||||||||
North American Wholesale | 5,167 | 8,478 | 12,920 | 17,127 | ||||||||||||
Licensing | 24,909 | 25,101 | 47,630 | 51,305 | ||||||||||||
Corporate Overhead | (22,333 | ) | (21,374 | ) | (43,106 | ) | (40,078 | ) | ||||||||
Restructuring Charges | — | (6,129 | ) | — | (8,466 | ) | ||||||||||
Total earnings from operations | $ | 29,858 | $ | 60,780 | $ | 27,881 | $ | 72,105 | ||||||||
Borrowings_and_Capital_Lease_O1
Borrowings and Capital Lease Obligations (Tables) | 6 Months Ended | |||||||
Aug. 02, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Summary of borrowings and capital lease obligations | ' | |||||||
Borrowings and capital lease obligations are summarized as follows (in thousands): | ||||||||
Aug 2, 2014 | Feb 1, 2014 | |||||||
European capital lease, maturing quarterly through 2016 | $ | 7,294 | $ | 8,637 | ||||
Other | 1,438 | 3,103 | ||||||
8,732 | 11,740 | |||||||
Less current installments | 1,997 | 4,160 | ||||||
Long-term capital lease obligations and other debt | $ | 6,735 | $ | 7,580 | ||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 6 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Schedule of share-based compensation expense recognized under all of the Company's stock plans | ' | |||||||||||||||
The following table summarizes the share-based compensation expense recognized under all of the Company’s stock plans during the three and six months ended August 2, 2014 and August 3, 2013 (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
Aug 2, 2014 | Aug 3, 2013 | Aug 2, 2014 | Aug 3, 2013 | |||||||||||||
Stock options | $ | 620 | $ | 684 | $ | 1,076 | $ | 1,257 | ||||||||
Nonvested stock awards/units | 3,439 | 2,994 | 6,377 | 4,599 | ||||||||||||
Employee Stock Purchase Plan | 97 | 73 | 160 | 143 | ||||||||||||
Total share-based compensation expense | $ | 4,156 | $ | 3,751 | $ | 7,613 | $ | 5,999 | ||||||||
Supplemental_Executive_Retirem1
Supplemental Executive Retirement Plan (Tables) | 6 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Components of net periodic pension cost | ' | |||||||||||||||
The components of net periodic pension cost for the three and six months ended August 2, 2014 and August 3, 2013 were as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
Aug 2, 2014 | Aug 3, 2013 | Aug 2, 2014 | Aug 3, 2013 | |||||||||||||
Interest cost | $ | 572 | $ | 586 | $ | 1,144 | $ | 1,172 | ||||||||
Net amortization of unrecognized prior service (credit) cost | (58 | ) | 156 | (116 | ) | 311 | ||||||||||
Net amortization of actuarial losses | 235 | 277 | 469 | 554 | ||||||||||||
Net periodic defined benefit pension cost | $ | 749 | $ | 1,019 | $ | 1,497 | $ | 2,037 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Aug. 02, 2014 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of fair value hierarchy for assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||||||||||||||||||
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of August 2, 2014 and February 1, 2014 (in thousands): | |||||||||||||||||||||||||||||||||
Fair Value Measurements at Aug 2, 2014 | Fair Value Measurements at Feb 1, 2014 | ||||||||||||||||||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Foreign exchange currency contracts | $ | — | $ | 3,248 | $ | — | $ | 3,248 | $ | — | $ | 2,116 | $ | — | $ | 2,116 | |||||||||||||||||
Available-for-sale securities | 5,066 | — | — | 5,066 | 5,732 | — | — | 5,732 | |||||||||||||||||||||||||
Total | $ | 5,066 | $ | 3,248 | $ | — | $ | 8,314 | $ | 5,732 | $ | 2,116 | $ | — | $ | 7,848 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Foreign exchange currency contracts | $ | — | $ | 342 | $ | — | $ | 342 | $ | — | $ | 1,712 | $ | — | $ | 1,712 | |||||||||||||||||
Interest rate swap | — | 440 | — | 440 | — | 581 | — | 581 | |||||||||||||||||||||||||
Deferred compensation obligations | — | 8,305 | — | 8,305 | — | 7,498 | — | 7,498 | |||||||||||||||||||||||||
Total | $ | — | $ | 9,087 | $ | — | $ | 9,087 | $ | — | $ | 9,791 | $ | — | $ | 9,791 | |||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 6 Months Ended | |||||||||||||||||
Aug. 02, 2014 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||
Summary of fair value of derivative instruments in the condensed consolidated balance sheet | ' | |||||||||||||||||
The fair value of derivative instruments in the condensed consolidated balance sheets as of August 2, 2014 and February 1, 2014 was as follows (in thousands): | ||||||||||||||||||
Derivative | Fair Value at | Fair Value at | ||||||||||||||||
Balance Sheet | Aug 2, 2014 | Feb 1, 2014 | ||||||||||||||||
Location | ||||||||||||||||||
ASSETS: | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Foreign exchange currency contracts: | ||||||||||||||||||
Cash flow hedges | Other current assets | $ | 1,430 | $ | 977 | |||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign exchange currency contracts | Other current assets | 1,818 | 1,139 | |||||||||||||||
Total | $ | 3,248 | $ | 2,116 | ||||||||||||||
LIABILITIES: | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Foreign exchange currency contracts: | ||||||||||||||||||
Cash flow hedges | Accrued expenses | $ | 237 | $ | 672 | |||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign exchange currency contracts | Accrued expenses | 105 | 1,040 | |||||||||||||||
Interest rate swaps | Other long-term liabilities | 440 | 581 | |||||||||||||||
Total derivatives not designated as hedging instruments | 545 | 1,621 | ||||||||||||||||
Total | $ | 782 | $ | 2,293 | ||||||||||||||
Summary of gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings | ' | |||||||||||||||||
The following table summarizes the gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings for the three and six months ended August 2, 2014 and August 3, 2013 (in thousands): | ||||||||||||||||||
Gain (Loss) | Location of | Gain (Loss) | ||||||||||||||||
Recognized in | Gain (Loss) | Reclassified from | ||||||||||||||||
OCI | Reclassified from | Accumulated OCI into | ||||||||||||||||
Accumulated OCI | Earnings | |||||||||||||||||
Three Months | Three Months | into Earnings(1) | Three Months | Three Months | ||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||
2-Aug-14 | 3-Aug-13 | 2-Aug-14 | 3-Aug-13 | |||||||||||||||
Derivatives designated as cash flow hedges: | ||||||||||||||||||
Foreign exchange currency contracts | $ | 1,866 | $ | 247 | Cost of sales | $ | (265 | ) | $ | 393 | ||||||||
Foreign exchange currency contracts | $ | 1 | $ | (20 | ) | Other income/expense | $ | (25 | ) | $ | 115 | |||||||
Gain (Loss) | Location of | Gain (Loss) | ||||||||||||||||
Recognized in | Gain (Loss) | Reclassified from | ||||||||||||||||
OCI | Reclassified from | Accumulated OCI into | ||||||||||||||||
Accumulated OCI | Earnings | |||||||||||||||||
Six Months | Six Months | into Earnings(1) | Six Months | Six Months | ||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||
2-Aug-14 | 3-Aug-13 | 2-Aug-14 | 3-Aug-13 | |||||||||||||||
Derivatives designated as cash flow hedges: | ||||||||||||||||||
Foreign exchange currency contracts | $ | (706 | ) | $ | 4,479 | Cost of sales | $ | (759 | ) | $ | 872 | |||||||
Foreign exchange currency contracts | $ | (106 | ) | $ | 418 | Other income/expense | $ | (56 | ) | $ | 94 | |||||||
__________________________________ | ||||||||||||||||||
-1 | The ineffective portion was immaterial during the three and six months ended August 2, 2014 and August 3, 2013 and was recorded in net earnings and included in interest income/expense. | |||||||||||||||||
Summary of net after-tax derivative activity recorded in accumulated other comprehensive income | ' | |||||||||||||||||
The following table summarizes net after-tax derivative activity recorded in accumulated other comprehensive income (loss) (in thousands): | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
Aug 2, | Aug 3, | Aug 2, | Aug 3, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Beginning balance gain (loss) | $ | (1,667 | ) | $ | 1,918 | $ | (113 | ) | $ | (1,782 | ) | |||||||
Net gains (losses) from changes in cash flow hedges | 1,352 | 64 | (706 | ) | 4,152 | |||||||||||||
Net (gains) losses reclassified to earnings | 681 | (424 | ) | 1,185 | (812 | ) | ||||||||||||
Ending balance gain | $ | 366 | $ | 1,558 | $ | 366 | $ | 1,558 | ||||||||||
Summary of gains (losses) before taxes recognized on the derivative instruments not designated as hedging instruments in other income and expense | ' | |||||||||||||||||
The following table summarizes the gains (losses) before taxes recognized on the derivative instruments not designated as hedging instruments in other income and expense for the three and six months ended August 2, 2014 and August 3, 2013 (in thousands): | ||||||||||||||||||
Location of | Gain (Loss) | Gain | ||||||||||||||||
Gain (Loss) | Recognized in Earnings | Recognized in Earnings | ||||||||||||||||
Recognized in | ||||||||||||||||||
Earnings | Three Months | Three Months | Six Months | Six Months | ||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||
2-Aug-14 | 3-Aug-13 | 2-Aug-14 | 3-Aug-13 | |||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign exchange currency contracts | Other income/expense | $ | 3,984 | $ | (727 | ) | $ | 1,195 | $ | 3,049 | ||||||||
Interest rate swaps | Other income/expense | $ | 57 | $ | 118 | $ | 132 | $ | 196 | |||||||||
Basis_of_Presentation_Details
Basis of Presentation (Details) | 6 Months Ended | 12 Months Ended | |
Aug. 02, 2014 | Feb. 01, 2014 | Feb. 02, 2013 | |
Fiscal Year [Abstract] | ' | ' | ' |
Number of days in fiscal year | '364 days | '364 days | '371 days |
Earnings_per_Share_Details
Earnings per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net earnings attributable to Guess, Inc. | $21,954 | $39,866 | $19,853 | $49,782 |
Less net earnings attributable to nonvested restricted stockholders | 167 | 351 | 292 | 410 |
Net earnings attributable to common stockholders | $21,787 | $39,515 | $19,561 | $49,372 |
Weighted average common shares used in basic computations | 84,573,000 | 84,080,000 | 84,536,000 | 84,331,000 |
Effect of dilutive securities: | ' | ' | ' | ' |
Stock options and restricted stock units (in shares) | 226,000 | 267,000 | 229,000 | 232,000 |
Weighted average common shares used in diluted computations | 84,799,000 | 84,347,000 | 84,765,000 | 84,563,000 |
Net earnings per common share attributable to common stockholders: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.26 | $0.47 | $0.23 | $0.59 |
Diluted (in dollars per share) | $0.26 | $0.47 | $0.23 | $0.58 |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' |
Anti-dilutive equity awards excluded from computation of dilutive weighted average common shares | 1,666,111 | 1,061,684 | 1,549,291 | 1,412,576 |
Performance awards/units | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' |
Anti-dilutive equity awards excluded from computation of dilutive weighted average common shares | 259,700 | 243,700 | 259,700 | 243,700 |
Earnings_Per_Share_Details_2
Earnings Per Share (Details 2) (USD $) | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | ||
Aug. 02, 2014 | Mar. 14, 2011 | Aug. 02, 2014 | Aug. 02, 2014 | Jun. 26, 2012 | Aug. 02, 2014 | Aug. 02, 2014 | 4-May-13 | Aug. 03, 2013 | |
Share Repurchase Program 2011 | Share Repurchase Program 2011 | Share Repurchase Program 2012 | Share Repurchase Program 2012 | Share Repurchase Program 2012 | Share Repurchase Program 2011 and 2012 | Share Repurchase Program 2011 and 2012 | Share Repurchase Program 2011 and 2012 | Share Repurchase Program 2011 and 2012 | |
Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Maximum | Minimum | Common Stock | Common Stock | |
Maximum | Maximum | ||||||||
Share Repurchase Program | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of common stock authorized to be repurchased | ' | $250,000,000 | ' | ' | $500,000,000 | ' | ' | ' | ' |
Number of shares authorized to be repurchased | ' | ' | ' | ' | ' | 0 | 0 | ' | ' |
Number of common stock repurchased (in shares) | ' | ' | 0 | 0 | ' | ' | ' | 882,551 | 882,551 |
Shares repurchased, aggregate cost | ' | ' | 0 | 0 | ' | ' | ' | 22,100,000 | 22,100,000 |
Value of common stock remaining to be repurchased | $0 | ' | ' | $495,800,000 | ' | ' | ' | ' | ' |
Stockholders_Equity_and_Redeem2
Stockholders' Equity and Redeemable Noncontrolling Interests (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | |||
Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Feb. 01, 2014 | Aug. 02, 2014 | Feb. 01, 2014 | Aug. 02, 2014 | Feb. 01, 2014 | |
Guess, Inc. Stockholders’ Equity | Guess, Inc. Stockholders’ Equity | Nonredeemable Noncontrolling Interests | Nonredeemable Noncontrolling Interests | Stockholders' Equity, Total | Stockholders' Equity, Total | |||||
Stockholders' equity reconciliation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders' equity, balance at the beginning of the period | ' | ' | $1,169,986,000 | ' | $1,154,514,000 | $1,086,992,000 | $15,472,000 | $13,876,000 | $1,169,986,000 | $1,100,868,000 |
Net earnings | 22,272,000 | 40,703,000 | 20,085,000 | 51,803,000 | 19,853,000 | 153,434,000 | 232,000 | 4,277,000 | 20,085,000 | 157,711,000 |
Foreign currency translation adjustment | ' | ' | ' | ' | 2,425,000 | -17,621,000 | 117,000 | -804,000 | 2,542,000 | -18,425,000 |
Gain (loss) on derivative financial instruments designated as cash flow hedges, net of income tax | ' | ' | ' | ' | 479,000 | 1,669,000 | 0 | 0 | 479,000 | 1,669,000 |
Gain (loss) on marketable securities, net of income tax | ' | ' | ' | ' | -95,000 | -7,000 | 0 | 0 | -95,000 | -7,000 |
SERP plan amendment, prior service (credit) cost and actuarial valuation gain (loss) and related amortization, net of income tax | ' | ' | ' | ' | 218,000 | 4,619,000 | 0 | 0 | 218,000 | 4,619,000 |
Issuance of common stock under stock compensation plans, net of tax effect | ' | ' | ' | ' | -93,000 | 2,404,000 | 0 | 0 | -93,000 | 2,404,000 |
Issuance of stock under Employee Stock Purchase Plan | ' | ' | ' | ' | 635,000 | 980,000 | 0 | 0 | 635,000 | 980,000 |
Share-based compensation | ' | ' | ' | ' | 7,613,000 | 13,949,000 | 0 | 0 | 7,613,000 | 13,949,000 |
Dividends | ' | ' | ' | ' | -38,486,000 | -68,215,000 | 0 | 0 | -38,486,000 | -68,215,000 |
Share repurchases | ' | ' | ' | ' | ' | -22,099,000 | ' | 0 | ' | -22,099,000 |
Noncontrolling interest capital contribution | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | 0 |
Noncontrolling interest capital distribution | ' | ' | ' | ' | ' | 0 | ' | -1,877,000 | ' | -1,877,000 |
Redeemable noncontrolling interest redemption value adjustment | ' | ' | ' | ' | 427,000 | -1,591,000 | 0 | 0 | 427,000 | -1,591,000 |
Stockholders' equity, balance at the end of the period | 1,163,311,000 | ' | 1,163,311,000 | ' | 1,147,490,000 | 1,154,514,000 | 15,821,000 | 15,472,000 | 1,163,311,000 | 1,169,986,000 |
Comprehensive income (loss), income tax effect | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) on derivative financial instruments designated as cash flow hedges, tax effect | ' | ' | ' | ' | ' | ' | ' | ' | 476,000 | -237,000 |
Gain (loss) on marketable securities, tax effect | ' | ' | ' | ' | ' | ' | ' | ' | 58,000 | 4,000 |
SERP plan amendment, prior service (credit) cost and actuarial valuation gain (loss) and related amortization, tax effect | ' | ' | ' | ' | ' | ' | ' | ' | ($135,000) | ($2,963,000) |
Stockholders_Equity_and_Redeem3
Stockholders' Equity and Redeemable Noncontrolling Interests (Details 2) (USD $) | 6 Months Ended | 12 Months Ended |
Aug. 02, 2014 | Feb. 01, 2014 | |
Redeemable noncontrolling interests reconciliation | ' | ' |
Redeemable noncontrolling interest, redemption value at the beginning of the period | $5,830,000 | $3,144,000 |
Foreign currency translation adjustment | 65,000 | -104,000 |
Redeemable noncontrolling interest capital contribution | ' | 1,199,000 |
Redeemable noncontrolling interest redemption value adjustment | -427,000 | 1,591,000 |
Redeemable noncontrolling interest, redemption value at the end of the period | 5,468,000 | 5,830,000 |
Redeemable noncontrolling interests put arrangements | ' | ' |
Redeemable noncontrolling interests | 5,468,000 | 5,830,000 |
Guess Sud | ' | ' |
Redeemable noncontrolling interests reconciliation | ' | ' |
Redeemable noncontrolling interest, redemption value at the beginning of the period | 4,700,000 | ' |
Redeemable noncontrolling interest, redemption value at the end of the period | 4,300,000 | ' |
Redeemable noncontrolling interests put arrangements | ' | ' |
Redeemable noncontrolling interests | 4,300,000 | ' |
Total outstanding equity interest in subsidiary covered by put arrangement (as a percent) | 40.00% | ' |
Initial date put option can be exercised by noncontrolling owners | 30-Jan-12 | ' |
Guess Brazil | ' | ' |
Redeemable noncontrolling interests reconciliation | ' | ' |
Redeemable noncontrolling interest, redemption value at the beginning of the period | 1,100,000 | ' |
Redeemable noncontrolling interest, redemption value at the end of the period | 1,200,000 | 1,100,000 |
Redeemable noncontrolling interests put arrangements | ' | ' |
Redeemable noncontrolling interests | 1,200,000 | 1,100,000 |
Payments to acquire controlling interest in joint venture | ' | $1,800,000 |
Controlling interest in joint venture held by the Company | 60.00% | ' |
Initial date put option can be exercised by noncontrolling owners (by year) | '2020 | ' |
Period put arrangement can be exercised by noncontrolling interest holder after initial and subsequent exercise periods | '3 years | ' |
Stockholders_Equity_and_Redeem4
Stockholders' Equity and Redeemable Noncontrolling Interests (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 |
Accumulated other comprehensive income (loss), net of tax | ' | ' | ' | ' |
Beginning balance | $6,533 | ($23,201) | ($13,801) | ($2,461) |
Gains (losses) arising during the period | -18,097 | 5,730 | 1,678 | -14,889 |
Reclassification to net earnings for (gains) losses realized | 790 | -156 | 1,349 | -277 |
Net other comprehensive income (loss) | -17,307 | 5,574 | 3,027 | -15,166 |
Ending balance | -10,774 | -17,627 | -10,774 | -17,627 |
Foreign Currency Translation Adjustment | ' | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax | ' | ' | ' | ' |
Beginning balance | 14,846 | -14,148 | -7,003 | 10,618 |
Gains (losses) arising during the period | -19,424 | 2,951 | 2,425 | -21,815 |
Reclassification to net earnings for (gains) losses realized | 0 | 0 | 0 | 0 |
Net other comprehensive income (loss) | -19,424 | 2,951 | 2,425 | -21,815 |
Ending balance | -4,578 | -11,197 | -4,578 | -11,197 |
Derivative Financial Instruments Designated as Cash Flow Hedges | ' | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax | ' | ' | ' | ' |
Beginning balance | -1,667 | 1,918 | -113 | -1,782 |
Gains (losses) arising during the period | 1,352 | 64 | -706 | 4,152 |
Reclassification to net earnings for (gains) losses realized | 681 | -424 | 1,185 | -812 |
Net other comprehensive income (loss) | 2,033 | -360 | 479 | 3,340 |
Ending balance | 366 | 1,558 | 366 | 1,558 |
Marketable Securities | ' | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax | ' | ' | ' | ' |
Beginning balance | 33 | 169 | 103 | 110 |
Gains (losses) arising during the period | -25 | -81 | -41 | -22 |
Reclassification to net earnings for (gains) losses realized | 0 | 0 | -54 | 0 |
Net other comprehensive income (loss) | -25 | -81 | -95 | -22 |
Ending balance | 8 | 88 | 8 | 88 |
SERP | ' | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax | ' | ' | ' | ' |
Beginning balance | -6,679 | -11,140 | -6,788 | -11,407 |
Gains (losses) arising during the period | 0 | 2,796 | 0 | 2,796 |
Reclassification to net earnings for (gains) losses realized | 109 | 268 | 218 | 535 |
Net other comprehensive income (loss) | 109 | 3,064 | 218 | 3,331 |
Ending balance | ($6,570) | ($8,076) | ($6,570) | ($8,076) |
Stockholders_Equity_and_Redeem5
Stockholders' Equity and Redeemable Noncontrolling Interests (Details 4) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | ||||
Reclassification adjustment out of accumulated other comprehensive income (loss) | ' | ' | ' | ' | ||||
Less income tax effect | $391 | $84 | $370 | $154 | ||||
Available-for-sale securities | 0 | 0 | -87 | 0 | ||||
Less income tax effect | 0 | 0 | 33 | 0 | ||||
Actuarial loss amortization | 235 | 277 | 469 | 554 | ||||
Prior service (credit) cost amortization | -58 | 156 | -116 | 311 | ||||
Less income tax effect | -68 | -165 | -135 | -330 | ||||
Reclassification to net earnings for (gains) losses realized | 790 | -156 | 1,349 | -277 | ||||
Derivative Financial Instruments Designated as Cash Flow Hedges | ' | ' | ' | ' | ||||
Reclassification adjustment out of accumulated other comprehensive income (loss) | ' | ' | ' | ' | ||||
Reclassification to net earnings for (gains) losses realized | 681 | -424 | 1,185 | -812 | ||||
Marketable Securities | ' | ' | ' | ' | ||||
Reclassification adjustment out of accumulated other comprehensive income (loss) | ' | ' | ' | ' | ||||
Reclassification to net earnings for (gains) losses realized | 0 | 0 | -54 | 0 | ||||
SERP | ' | ' | ' | ' | ||||
Reclassification adjustment out of accumulated other comprehensive income (loss) | ' | ' | ' | ' | ||||
Actuarial loss amortization | 235 | [1] | 277 | [1] | 469 | [1] | 554 | [1] |
Prior service (credit) cost amortization | -58 | [1] | 156 | [1] | -116 | [1] | 311 | [1] |
Reclassification to net earnings for (gains) losses realized | 109 | 268 | 218 | 535 | ||||
Cost of sales | Derivative Financial Instruments Designated as Cash Flow Hedges | ' | ' | ' | ' | ||||
Reclassification adjustment out of accumulated other comprehensive income (loss) | ' | ' | ' | ' | ||||
Foreign exchange currency contracts | 265 | -393 | 759 | -872 | ||||
Other income/expense | Derivative Financial Instruments Designated as Cash Flow Hedges | ' | ' | ' | ' | ||||
Reclassification adjustment out of accumulated other comprehensive income (loss) | ' | ' | ' | ' | ||||
Foreign exchange currency contracts | 25 | -115 | 56 | -94 | ||||
Other income/expense | Marketable Securities | ' | ' | ' | ' | ||||
Reclassification adjustment out of accumulated other comprehensive income (loss) | ' | ' | ' | ' | ||||
Available-for-sale securities | 0 | 0 | -87 | 0 | ||||
Income tax expense | Derivative Financial Instruments Designated as Cash Flow Hedges | ' | ' | ' | ' | ||||
Reclassification adjustment out of accumulated other comprehensive income (loss) | ' | ' | ' | ' | ||||
Less income tax effect | 391 | 84 | 370 | 154 | ||||
Income tax expense | Marketable Securities | ' | ' | ' | ' | ||||
Reclassification adjustment out of accumulated other comprehensive income (loss) | ' | ' | ' | ' | ||||
Less income tax effect | 0 | 0 | 33 | 0 | ||||
Income tax expense | SERP | ' | ' | ' | ' | ||||
Reclassification adjustment out of accumulated other comprehensive income (loss) | ' | ' | ' | ' | ||||
Less income tax effect | ($68) | ($165) | ($135) | ($330) | ||||
[1] | These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. Refer to Note 13 for further information. |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | Aug. 02, 2014 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Accounts receivable | ' | ' |
Accounts receivable, gross | $272,247 | $315,957 |
Less allowance for doubtful accounts | 38,341 | 39,392 |
Accounts receivable, net | 233,906 | 276,565 |
Trade receivables | ' | ' |
Accounts receivable | ' | ' |
Accounts receivable, gross | 258,446 | 291,411 |
Royalty receivables | ' | ' |
Accounts receivable | ' | ' |
Accounts receivable, gross | 8,629 | 16,372 |
Other receivables | ' | ' |
Accounts receivable | ' | ' |
Accounts receivable, gross | $5,172 | $8,174 |
Inventories_Details
Inventories (Details) (USD $) | Aug. 02, 2014 | Feb. 01, 2014 |
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $14,778,000 | $10,585,000 |
Work in progress | 175,000 | 977,000 |
Finished goods | 377,434,000 | 339,337,000 |
Inventories | 392,387,000 | 350,899,000 |
Allowance to write-down inventories to lower of cost or market value, amount | $21,800,000 | $23,400,000 |
Restructuring_Charges_Details
Restructuring Charges (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Feb. 01, 2014 |
Restructuring reserve activity | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | $4,578 | $0 | $0 |
Charges to operations | 0 | 6,129 | 0 | 8,466 | 12,442 |
Non-cash write-offs | ' | ' | ' | ' | -1,717 |
Cash payments | ' | ' | -1,892 | ' | -6,059 |
Foreign currency and other adjustments | ' | ' | -846 | ' | -88 |
Ending balance | 1,840 | ' | 1,840 | ' | 4,578 |
Severance | ' | ' | ' | ' | ' |
Restructuring reserve activity | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | 4,578 | 0 | 0 |
Charges to operations | ' | ' | ' | ' | 9,206 |
Non-cash write-offs | ' | ' | ' | ' | 0 |
Cash payments | ' | ' | -1,892 | ' | -4,567 |
Foreign currency and other adjustments | ' | ' | -846 | ' | -61 |
Ending balance | 1,840 | ' | 1,840 | ' | 4,578 |
Impairment and Lease Termination | ' | ' | ' | ' | ' |
Restructuring reserve activity | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | 0 | 0 | 0 |
Charges to operations | ' | ' | ' | ' | 3,236 |
Non-cash write-offs | ' | ' | ' | ' | -1,717 |
Cash payments | ' | ' | 0 | ' | -1,492 |
Foreign currency and other adjustments | ' | ' | 0 | ' | -27 |
Ending balance | 0 | ' | 0 | ' | 0 |
Accrued expenses | ' | ' | ' | ' | ' |
Restructuring activity | ' | ' | ' | ' | ' |
Restructuring reserve included in accrued expenses | $1,840 | ' | $1,840 | ' | $4,578 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 6 Months Ended | ||
In Millions, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Feb. 01, 2014 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Effective income tax rate (as a percentage) | 35.10% | 33.00% | ' |
Aggregate accruals for uncertain tax positions, including penalties and interest | $12 | ' | $11.40 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Feb. 01, 2014 |
segment | |||||
Segment information of net revenue, earnings (loss) from operations | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 5 | ' | ' |
Net revenue | $608,571 | $639,012 | $1,131,112 | $1,187,926 | ' |
Licensing | 26,792 | 27,118 | 52,405 | 57,368 | ' |
Restructuring charges | 0 | -6,129 | 0 | -8,466 | -12,442 |
Earnings (loss) from operations | 29,858 | 60,780 | 27,881 | 72,105 | ' |
Corporate Overhead | ' | ' | ' | ' | ' |
Segment information of net revenue, earnings (loss) from operations | ' | ' | ' | ' | ' |
Earnings (loss) from operations | -22,333 | -21,374 | -43,106 | -40,078 | ' |
Restructuring Charges | ' | ' | ' | ' | ' |
Segment information of net revenue, earnings (loss) from operations | ' | ' | ' | ' | ' |
Restructuring charges | 0 | -6,129 | 0 | -8,466 | ' |
North American Retail | ' | ' | ' | ' | ' |
Segment information of net revenue, earnings (loss) from operations | ' | ' | ' | ' | ' |
Net revenue | 244,000 | 254,313 | 472,344 | 492,624 | ' |
Earnings (loss) from operations | -4,662 | 10,390 | -13,061 | 6,157 | ' |
Europe | ' | ' | ' | ' | ' |
Segment information of net revenue, earnings (loss) from operations | ' | ' | ' | ' | ' |
Net revenue | 235,260 | 250,372 | 394,418 | 415,764 | ' |
Earnings (loss) from operations | 24,513 | 39,275 | 17,881 | 34,057 | ' |
Asia | ' | ' | ' | ' | ' |
Segment information of net revenue, earnings (loss) from operations | ' | ' | ' | ' | ' |
Net revenue | 64,267 | 65,852 | 134,385 | 136,984 | ' |
Earnings (loss) from operations | 2,264 | 5,039 | 5,617 | 12,003 | ' |
North American Wholesale | ' | ' | ' | ' | ' |
Segment information of net revenue, earnings (loss) from operations | ' | ' | ' | ' | ' |
Net revenue | 38,252 | 41,357 | 77,560 | 85,186 | ' |
Earnings (loss) from operations | 5,167 | 8,478 | 12,920 | 17,127 | ' |
Licensing | ' | ' | ' | ' | ' |
Segment information of net revenue, earnings (loss) from operations | ' | ' | ' | ' | ' |
Licensing | 26,792 | 27,118 | 52,405 | 57,368 | ' |
Earnings (loss) from operations | $24,909 | $25,101 | $47,630 | $51,305 | ' |
Borrowings_and_Capital_Lease_O2
Borrowings and Capital Lease Obligations (Details) (USD $) | Aug. 02, 2014 | Feb. 01, 2014 | Aug. 02, 2014 | Jul. 06, 2011 | Aug. 02, 2014 | Aug. 31, 2012 | Jul. 06, 2011 | Aug. 02, 2014 |
European capital lease, maturing quarterly through 2016 | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Short-term borrowing | |||
Italy | Europe | |||||||
facility | ||||||||
Borrowings and capital lease obligations | ' | ' | ' | ' | ' | ' | ' | ' |
European capital lease, maturing quarterly through 2016 | $7,294,000 | $8,637,000 | $7,294,000 | ' | ' | ' | ' | ' |
Other | 1,438,000 | 3,103,000 | ' | ' | ' | ' | ' | ' |
Borrowings and capital lease obligations, total | 8,732,000 | 11,740,000 | ' | ' | ' | ' | ' | ' |
Less current installments | 1,997,000 | 4,160,000 | ' | ' | ' | ' | ' | ' |
Long-term capital lease obligations and other debt | 6,735,000 | 7,580,000 | ' | ' | ' | ' | ' | ' |
Capital Lease | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed rate of interest rate swap designated as non-hedging instruments (as a percent) | ' | ' | 3.55% | ' | ' | ' | ' | ' |
Interest rate swap maturity date (by year) | ' | ' | '2016 | ' | ' | ' | ' | ' |
Fair value of interest rate swap liability | ' | ' | 400,000 | ' | ' | ' | ' | ' |
Credit Facilities | ' | ' | ' | ' | ' | ' | ' | ' |
Debt maturity period (in years) | ' | ' | ' | '5 years | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | 300,000,000 | 300,000,000 | 200,000,000 | 112,800,000 |
Sublimit on the amount of incremental revolving commitments and incremental term loans | ' | ' | ' | ' | 100,000,000 | 100,000,000 | ' | ' |
Letters of credit outstanding | ' | ' | ' | ' | 1,700,000 | ' | ' | ' |
Documentary letters of credit outstanding amount | ' | ' | ' | ' | 0 | ' | ' | 1,600,000 |
Credit Facility, outstanding amount | ' | ' | ' | ' | 0 | ' | ' | 0 |
Interest rate, low end of the range (as a percent) | ' | ' | ' | ' | ' | ' | ' | 0.50% |
Interest rate, high end of the range (as a percent) | ' | ' | ' | ' | ' | ' | ' | 3.00% |
Maximum borrowing capacity of the credit facility which is subject to a minimum net equity requirement | ' | ' | ' | ' | ' | ' | ' | $47,000,000 |
Number of credit facilities subject to minimum net equity requirement | ' | ' | ' | ' | ' | ' | ' | 1 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||
Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Apr. 02, 2014 | Apr. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Apr. 02, 2014 | Apr. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Apr. 08, 2014 | Jul. 11, 2013 | Apr. 08, 2014 | Jul. 11, 2013 | Aug. 02, 2014 | Apr. 08, 2014 | Apr. 08, 2014 | |
Stock option | Stock option | Stock option | Stock option | Stock option | Stock option | Nonvested stock awards or units | Nonvested stock awards or units | Nonvested stock awards or units | Nonvested stock awards or units | Nonvested stock awards or units | Nonvested stock awards or units | Employee Stock Purchase Plan | Employee Stock Purchase Plan | Employee Stock Purchase Plan | Employee Stock Purchase Plan | Performance awards/units | Performance awards/units | Target performance awards/units | Target performance awards/units | Target performance awards/units | Target performance awards/units | Target performance awards/units | |||||
Paul Marciano | Paul Marciano | Paul Marciano | Paul Marciano | Paul Marciano | Paul Marciano | Paul Marciano | |||||||||||||||||||||
Minimum | Maximum | ||||||||||||||||||||||||||
Disclosure of share-based compensation information under stock plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | $4,156,000 | $3,751,000 | $7,613,000 | $5,999,000 | ' | ' | $620,000 | $684,000 | $1,076,000 | $1,257,000 | ' | ' | $3,439,000 | $2,994,000 | $6,377,000 | $4,599,000 | $97,000 | $73,000 | $160,000 | $143,000 | ' | ' | ' | ' | ' | ' | ' |
Share-Based Compensation, Additional Disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, adjusted for estimated forfeitures, related to nonvested stock options/awards/units | ' | ' | ' | ' | ' | ' | $4,500,000 | ' | $4,500,000 | ' | ' | ' | $23,900,000 | ' | $23,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period for recognition of unrecognized compensation cost (in years/months/days) | ' | ' | ' | ' | ' | ' | '1 year 8 months 7 days | ' | '1 year 8 months 7 days | ' | ' | ' | '1 year 8 months 7 days | ' | '1 year 8 months 7 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average fair values of stock options granted during the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $6.23 | $6.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | 365,600 | 416,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested stock awards or units granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 301,200 | 408,400 | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 100,000 | 159,700 | 143,700 | ' | ' | ' |
Period which award is subject to a performance condition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '9 months | '1 year | '9 months | ' | ' | ' |
Percentage of target performance shares expected to vest based on the achievement of certain performance-based conditions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 84.00% | ' | ' |
Percentage of shares that will ultimately vest subject to performance condition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 150.00% |
Initial vesting period during first fiscal year of grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 months | '7 months | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '2 years | ' | ' | ' | ' | ' |
Vesting date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Jan-17 | 1-Feb-16 | ' | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 0 Months Ended | 1 Months Ended | 6 Months Ended | |
Jan. 28, 2012 | Jan. 31, 2014 | Aug. 02, 2014 | Aug. 03, 2013 | |
Marciano Trusts | ' | ' | ' | ' |
Related Party Transactions | ' | ' | ' | ' |
Number of leases under lease agreement | ' | ' | 4 | ' |
Lease rent and property tax expense | ' | ' | $2,900,000 | $2,900,000 |
Marciano Trusts | Minimum | ' | ' | ' | ' |
Related Party Transactions | ' | ' | ' | ' |
Lease expiration date by year | ' | ' | '2015 | ' |
Marciano Trusts | Maximum | ' | ' | ' | ' |
Related Party Transactions | ' | ' | ' | ' |
Lease expiration date by year | ' | ' | '2020 | ' |
MPM Financial LLC | ' | ' | ' | ' |
Related Party Transactions | ' | ' | ' | ' |
Fees paid for aircraft facility | ' | ' | 900,000 | ' |
Marciano Consulting Agreement | ' | ' | ' | ' |
Related Party Transactions | ' | ' | ' | ' |
Service term | '30 years | ' | ' | ' |
Consulting agreement term | '2 years | ' | ' | ' |
Consulting agreement, number of years during the extension period | ' | '1 year | ' | ' |
Consulting fees paid under the consulting arrangement | 500,000 | ' | ' | ' |
Total expenses incurred related to consulting arrangement | ' | ' | 300,000 | 300,000 |
Harmony Collection LLC | ' | ' | ' | ' |
Related Party Transactions | ' | ' | ' | ' |
Payment for production agreement | ' | ' | $700,000 | $800,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | 6 Months Ended | 1 Months Ended | 6 Months Ended | ||
Aug. 02, 2014 | Aug. 02, 2014 | Mar. 31, 2014 | Aug. 02, 2014 | Aug. 02, 2014 | |
Property leases | Equipment operating leases | U.S. distribution center lease | Retail store leases | Retail store leases | |
Minimum | Maximum | ||||
Leases | ' | ' | ' | ' | ' |
Percentage of annual sales volume used for incremental rent on certain retail store leases | ' | ' | ' | 2.00% | 12.00% |
Lease expiration date | 30-Sep-31 | 30-Dec-18 | ' | ' | ' |
Lease renewal term | ' | ' | '10 years | ' | ' |
Lease expiration date by year | ' | ' | '2024 | ' | ' |
Number of extension options available | ' | ' | 2 | ' | ' |
Terms for extension options | ' | ' | '5 years | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details 2) (USD $) | 0 Months Ended | 0 Months Ended | ||
Jul. 19, 2012 | Jul. 19, 2012 | 2-May-13 | Nov. 08, 2013 | |
Judicial Ruling | Judicial Ruling | Pending Litigation | Pending Litigation | |
U.S. | U.S. | Italy | China | |
Licensees | trademark | |||
Litigation | ' | ' | ' | ' |
Damages sought by plaintiff as compensation | $26,000,000 | ' | ' | ' |
Accounting profits sought by plaintiff as compensation | 99,000,000 | ' | ' | ' |
Monetary damages awarded by court | $2,300,000 | $2,300,000 | ' | $80,000 |
Number of Italian trademark registrations to be cancelled by plaintiff | ' | ' | 3 | ' |
Number of European Community trademark registrations to be cancelled by plaintiff | ' | ' | 4 | ' |
Supplemental_Executive_Retirem2
Supplemental Executive Retirement Plan (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Feb. 01, 2014 | |
Supplemental Executive Retirement Plan | ' | ' | ' | ' | ' |
Impact of plan amendment on projected benefit obligation and unrecognized prior service cost | ' | ' | ' | ' | $4,500,000 |
SERP benefit payments | 300,000 | ' | 300,000 | ' | ' |
Components of net periodic pension cost | ' | ' | ' | ' | ' |
Interest cost | 572,000 | 586,000 | 1,144,000 | 1,172,000 | ' |
Net amortization of unrecognized prior service (credit) cost | -58,000 | 156,000 | -116,000 | 311,000 | ' |
Net amortization of actuarial losses | 235,000 | 277,000 | 469,000 | 554,000 | ' |
Net periodic defined benefit pension cost | 749,000 | 1,019,000 | 1,497,000 | 2,037,000 | ' |
Other income/expense | ' | ' | ' | ' | ' |
Supplemental Executive Retirement Plan | ' | ' | ' | ' | ' |
Gain as a result of the change in value of the insurance policy investments, included in other income and expense | 700,000 | 1,100,000 | 2,200,000 | 2,600,000 | ' |
Other assets | ' | ' | ' | ' | ' |
Supplemental Executive Retirement Plan | ' | ' | ' | ' | ' |
Cash surrender values of the insurance policies held in a rabbi trust | 53,600,000 | ' | 53,600,000 | ' | 51,400,000 |
Accrued expenses and other long-term liabilities | ' | ' | ' | ' | ' |
Supplemental Executive Retirement Plan | ' | ' | ' | ' | ' |
Projected benefit obligation | $55,600,000 | ' | $55,600,000 | ' | $54,700,000 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 6 Months Ended | 12 Months Ended |
Aug. 02, 2014 | Feb. 01, 2014 | |
Transfers of financial instruments | ' | ' |
Value of transfers between levels | $0 | $0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | ' | ' |
Assets: | ' | ' |
Foreign exchange currency contracts, Assets | 0 | 0 |
Available-for-sale securities | 5,066,000 | 5,732,000 |
Total Assets | 5,066,000 | 5,732,000 |
Liabilities: | ' | ' |
Foreign exchange currency contracts, Liabilities | 0 | 0 |
Interest rate swap | 0 | 0 |
Deferred compensation obligations | 0 | 0 |
Total Liabilities | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | ' | ' |
Assets: | ' | ' |
Foreign exchange currency contracts, Assets | 3,248,000 | 2,116,000 |
Available-for-sale securities | 0 | 0 |
Total Assets | 3,248,000 | 2,116,000 |
Liabilities: | ' | ' |
Foreign exchange currency contracts, Liabilities | 342,000 | 1,712,000 |
Interest rate swap | 440,000 | 581,000 |
Deferred compensation obligations | 8,305,000 | 7,498,000 |
Total Liabilities | 9,087,000 | 9,791,000 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | ' | ' |
Assets: | ' | ' |
Foreign exchange currency contracts, Assets | 0 | 0 |
Available-for-sale securities | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ' | ' |
Foreign exchange currency contracts, Liabilities | 0 | 0 |
Interest rate swap | 0 | 0 |
Deferred compensation obligations | 0 | 0 |
Total Liabilities | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Fair Value | ' | ' |
Assets: | ' | ' |
Foreign exchange currency contracts, Assets | 3,248,000 | 2,116,000 |
Available-for-sale securities | 5,066,000 | 5,732,000 |
Total Assets | 8,314,000 | 7,848,000 |
Liabilities: | ' | ' |
Foreign exchange currency contracts, Liabilities | 342,000 | 1,712,000 |
Interest rate swap | 440,000 | 581,000 |
Deferred compensation obligations | 8,305,000 | 7,498,000 |
Total Liabilities | 9,087,000 | 9,791,000 |
Marketable equity securities | ' | ' |
Assets: | ' | ' |
Available-for-sale securities | $100,000 | $600,000 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | |
3-May-14 | Aug. 02, 2014 | Feb. 01, 2014 | |
Available-for-sale securities | ' | ' | ' |
Accumulated unrealized gains, net of tax, included in accumulated other comprehensive income (loss) | ' | ' | $103,000 |
Corporate bonds | ' | ' | ' |
Available-for-sale securities | ' | ' | ' |
Available-for-sale securities, included in short-term investments and other assets depending on their respective maturity dates | ' | 5,000,000 | 5,100,000 |
Maturity date | ' | 30-Sep-14 | ' |
Marketable equity securities | ' | ' | ' |
Available-for-sale securities | ' | ' | ' |
Available-for-sale securities, included in short-term investments and other assets depending on their respective maturity dates | ' | 100,000 | 600,000 |
Proceeds from sale of available-for-sale securities | 598,000 | 598,000 | ' |
Marketable equity securities | Other income/expense | ' | ' | ' |
Available-for-sale securities | ' | ' | ' |
Gains recognized on sale of available-for-sale securities | $100,000 | $100,000 | ' |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 |
Asset impairment charge | ' | ' | ' | ' |
Period of time new stores would need to be opened to be considered for impairment | ' | ' | '1 year | ' |
Selling, general and administrative expenses | North American Retail and Europe | ' | ' | ' | ' |
Asset impairment charge | ' | ' | ' | ' |
Charges related to asset impairments | $4.60 | $2.10 | $4.80 | $3.10 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | Aug. 02, 2014 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS: | ' | ' |
Derivatives, assets | $3,248 | $2,116 |
LIABILITIES: | ' | ' |
Derivatives, liabilities | 782 | 2,293 |
Derivatives designated as hedging instruments: | Foreign exchange currency contracts | Other current assets | Cash flow hedges | ' | ' |
ASSETS: | ' | ' |
Derivatives, assets | 1,430 | 977 |
Derivatives designated as hedging instruments: | Foreign exchange currency contracts | Accrued expenses | Cash flow hedges | ' | ' |
LIABILITIES: | ' | ' |
Derivatives, liabilities | 237 | 672 |
Derivatives not designated as hedging instruments: | ' | ' |
LIABILITIES: | ' | ' |
Derivatives, liabilities | 545 | 1,621 |
Derivatives not designated as hedging instruments: | Foreign exchange currency contracts | Other current assets | ' | ' |
ASSETS: | ' | ' |
Derivatives, assets | 1,818 | 1,139 |
Derivatives not designated as hedging instruments: | Foreign exchange currency contracts | Accrued expenses | ' | ' |
LIABILITIES: | ' | ' |
Derivatives, liabilities | 105 | 1,040 |
Derivatives not designated as hedging instruments: | Interest rate swaps | Other long-term liabilities | ' | ' |
LIABILITIES: | ' | ' |
Derivatives, liabilities | $440 | $581 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details 2) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Aug. 02, 2014 | Feb. 01, 2014 |
Forward contracts designated as hedging instruments | ' | ' |
Foreign exchange currency cash flow hedge unrealized gain to be recognized in cost of product sales or other income over the following 12 months | $0.30 | ' |
Cash flow hedges | Canada | ' | ' |
Forward contracts designated as hedging instruments | ' | ' |
U.S. dollar forward contracts purchased, total notional amount | 40.4 | ' |
U.S. dollar forward contracts outstanding | 28.9 | 15.2 |
U.S. dollar forward contracts outstanding, maximum remaining maturity period (in months) | '13 months | ' |
Cash flow hedges | Europe | ' | ' |
Forward contracts designated as hedging instruments | ' | ' |
U.S. dollar forward contracts purchased, total notional amount | 38.2 | ' |
U.S. dollar forward contracts outstanding | $66.90 | $87.10 |
U.S. dollar forward contracts outstanding, maximum remaining maturity period (in months) | '13 months | ' |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | ||||
Net after-tax derivative activity recorded in accumulated other comprehensive income (loss) | ' | ' | ' | ' | ||||
Beginning balance gain (loss) | ($1,667) | $1,918 | ($113) | ($1,782) | ||||
Net gains (losses) from changes in cash flow hedges | 1,352 | 64 | -706 | 4,152 | ||||
Net (gains) losses reclassified to earnings | 681 | -424 | 1,185 | -812 | ||||
Ending balance gain | 366 | 1,558 | 366 | 1,558 | ||||
Cash flow hedges | Cost of sales | ' | ' | ' | ' | ||||
Gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings | ' | ' | ' | ' | ||||
Gain (loss) recognized in OCI | 1,866 | 247 | -706 | 4,479 | ||||
Gain (loss) reclassified from accumulated OCI to earnings | -265 | [1] | 393 | [1] | -759 | [1] | 872 | [1] |
Cash flow hedges | Other income/expense | ' | ' | ' | ' | ||||
Gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings | ' | ' | ' | ' | ||||
Gain (loss) recognized in OCI | 1 | -20 | -106 | 418 | ||||
Gain (loss) reclassified from accumulated OCI to earnings | ($25) | [1] | $115 | [1] | ($56) | [1] | $94 | [1] |
[1] | The ineffective portion was immaterial during the three and six months ended August 2, 2014 and August 3, 2013 and was recorded in net earnings and included in interest income/expense. |
Derivative_Financial_Instrumen5
Derivative Financial Instruments (Details 4) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | |||||
Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Feb. 01, 2014 | Aug. 02, 2014 | Feb. 01, 2014 | |
Other income/expense | Other income/expense | Other income/expense | Other income/expense | Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | |
Euro | Euro | Canadian dollar | Canadian dollar | |||||
Derivative instruments not designated as hedging instruments | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. dollar forward contracts outstanding | ' | ' | ' | ' | $109,400,000 | $111,800,000 | $11,500,000 | $13,800,000 |
U.S. dollar forward contracts outstanding, maximum remaining maturity period (in months) | ' | ' | ' | ' | '13 months | ' | '4 months | ' |
Gain (loss) on foreign exchange currency contracts recognized in earnings before taxes | 3,984,000 | -727,000 | 1,195,000 | 3,049,000 | ' | ' | ' | ' |
Gain (loss) on interest rate swaps recognized in earnings before taxes | $57,000 | $118,000 | $132,000 | $196,000 | ' | ' | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | ||
Aug. 02, 2014 | Aug. 03, 2013 | Aug. 02, 2014 | Aug. 03, 2013 | Aug. 27, 2014 | |
Dividend Declared | |||||
Subsequent Events | ' | ' | ' | ' | ' |
Cash dividend announced on common stock (in dollars per share) | $0.23 | $0.20 | $0.45 | $0.40 | $0.23 |
Payment date of cash dividend | ' | ' | ' | ' | 26-Sep-14 |
Record date of cash dividend | ' | ' | ' | ' | 10-Sep-14 |