Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 30, 2016 | May. 31, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | GUESS INC | |
Trading Symbol | GES | |
Entity Central Index Key | 912,463 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-28 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 84,315,971 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 427,485 | $ 445,480 |
Accounts receivable, net | 177,669 | 222,359 |
Inventories | 358,191 | 311,704 |
Other current assets | 62,305 | 56,709 |
Total current assets | 1,025,650 | 1,036,252 |
Property and equipment, net | 265,818 | 255,344 |
Goodwill | 34,762 | 33,412 |
Other intangible assets, net | 7,279 | 7,269 |
Deferred tax assets | 89,068 | 83,613 |
Other assets | 130,199 | 122,858 |
Total assets | 1,552,776 | 1,538,748 |
Current liabilities: | ||
Current portion of capital lease obligations and borrowings | 4,443 | 4,024 |
Accounts payable | 179,533 | 177,505 |
Accrued expenses | 135,446 | 145,530 |
Total current liabilities | 319,422 | 327,059 |
Long-term debt | 23,539 | 2,318 |
Deferred rent and lease incentives | 78,576 | 76,968 |
Other long-term liabilities | 100,922 | 95,858 |
Total liabilities | 522,459 | 502,203 |
Redeemable noncontrolling interests | $ 8,204 | $ 5,252 |
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 140,511,873 and 140,028,937 shares, outstanding 84,326,321 and 83,833,937 shares, as of April 30, 2016 and January 30, 2016, respectively | 843 | 838 |
Paid-in capital | 472,090 | 468,574 |
Retained earnings | 1,224,916 | 1,269,775 |
Accumulated other comprehensive loss | (126,536) | (158,054) |
Treasury stock, 56,185,552 and 56,195,000 shares as of April 30, 2016 and January 30, 2016, respectively | (562,563) | (562,658) |
Guess, Inc. stockholders’ equity | 1,008,750 | 1,018,475 |
Nonredeemable noncontrolling interests | 13,363 | 12,818 |
Total stockholders’ equity | 1,022,113 | 1,031,293 |
Total liabilities and stockholders' equity | $ 1,552,776 | $ 1,538,748 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 30, 2016 | Jan. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 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, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 140,511,873 | 140,028,937 |
Common stock, shares outstanding | 84,326,321 | 83,833,937 |
Treasury stock, shares | 56,185,552 | 56,195,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2016 | May. 02, 2015 | |
Income Statement [Abstract] | ||
Product sales | $ 426,468 | $ 452,959 |
Net royalties | 22,347 | 25,865 |
Net revenue | 448,815 | 478,824 |
Cost of product sales | 306,056 | 313,339 |
Gross profit | 142,759 | 165,485 |
Selling, general and administrative expenses | 165,654 | 161,132 |
Restructuring charges | 6,083 | 0 |
Earnings (loss) from operations | (28,978) | 4,353 |
Other income (expense): | ||
Interest expense | (520) | (435) |
Interest income | 651 | 272 |
Other income (expense), net | (1,098) | 2,626 |
Total other income (expense) | (967) | 2,463 |
Earnings (loss) before income tax expense (benefit) | (29,945) | 6,816 |
Income tax expense (benefit) | (4,791) | 2,829 |
Net earnings (loss) | (25,154) | 3,987 |
Net earnings attributable to noncontrolling interests | 24 | 646 |
Net earnings (loss) attributable to Guess, Inc. | $ (25,178) | $ 3,341 |
Net earnings (loss) per common share attributable to common stockholders (Note 2): | ||
Basic (in dollars per share) | $ (0.30) | $ 0.04 |
Diluted (in dollars per share) | $ (0.30) | $ 0.04 |
Weighted average common shares outstanding attributable to common stockholders (Note 2): | ||
Basic (in shares) | 83,514 | 84,965 |
Diluted (in shares) | 83,514 | 85,099 |
Dividends declared per common share (in dollars per share) | $ 0.225 | $ 0.225 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2016 | May. 02, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings (loss) | $ (25,154) | $ 3,987 |
Foreign currency translation adjustment | ||
Gains (losses) arising during the period | 43,152 | (703) |
Derivative financial instruments designated as cash flow hedges | ||
Losses arising during the period | (12,243) | (1,295) |
Less income tax effect | 2,363 | 369 |
Reclassification to net earnings (loss) for gains realized | (1,416) | (2,236) |
Less income tax effect | 271 | 301 |
Marketable securities | ||
Gains (losses) arising during the period | 1 | (7) |
Less income tax effect | 0 | 3 |
Defined benefit plans | ||
Foreign currency and other adjustments | (164) | 0 |
Less income tax effect | 15 | 0 |
Actuarial loss amortization | 86 | 513 |
Prior service credit amortization | (7) | (58) |
Less income tax effect | (19) | (149) |
Total comprehensive income | 6,885 | 725 |
Less comprehensive income attributable to noncontrolling interests: | ||
Net earnings | 24 | 646 |
Foreign currency translation adjustment | 521 | (364) |
Amounts attributable to noncontrolling interests | 545 | 282 |
Comprehensive income attributable to Guess, Inc. | $ 6,340 | $ 443 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2016 | May. 02, 2015 | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ (25,154) | $ 3,987 |
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of property and equipment | 16,215 | 17,789 |
Amortization of intangible assets | 465 | 541 |
Share-based compensation expense | 4,232 | 3,612 |
Unrealized forward contract losses | 4,708 | 490 |
Net (gain) loss on disposition of property and equipment and long-term assets | 178 | (940) |
Other items, net | (935) | (1,510) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 44,957 | 24,038 |
Inventories | (33,973) | (7,027) |
Prepaid expenses and other assets | (10,543) | (973) |
Accounts payable and accrued expenses | (29,112) | (22,815) |
Deferred rent and lease incentives | 161 | (2,605) |
Other long-term liabilities | (2,043) | (5,452) |
Net cash provided by (used in) operating activities | (30,844) | 9,135 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (17,841) | (11,604) |
Proceeds from sale of long-term assets | 7,500 | 0 |
Acquisition of businesses, net of cash acquired | (55) | (599) |
Net cash settlement of forward contracts | 310 | 1,668 |
Net cash used in investing activities | (10,086) | (10,535) |
Cash flows from financing activities: | ||
Payment of debt issuance costs | (111) | 0 |
Proceeds from borrowings | 21,500 | 581 |
Repayment of capital lease obligations and borrowings | (472) | (593) |
Dividends paid | (19,256) | (19,261) |
Noncontrolling interest capital contributions | 1,876 | 0 |
Noncontrolling interest capital distributions | 0 | (3,830) |
Issuance of common stock, net of tax withholdings on vesting of stock awards | 262 | 145 |
Excess tax benefits from share-based compensation | 133 | 34 |
Net cash provided by (used in) financing activities | 3,932 | (22,924) |
Effect of exchange rates on cash and cash equivalents | 19,003 | (31) |
Net change in cash and cash equivalents | (17,995) | (24,355) |
Cash and cash equivalents at the beginning of the year | 445,480 | 483,483 |
Cash and cash equivalents at the end of the period | 427,485 | 459,128 |
Supplemental cash flow data: | ||
Interest paid | 310 | 232 |
Income taxes paid | $ 5,335 | $ 1,258 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 30, 2016 | |
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 April 30, 2016 and January 30, 2016 and the condensed consolidated statements of income (loss), comprehensive income and cash flows for the three months ended April 30, 2016 and May 2, 2015 . The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and the instructions to Rule 10-01 of Regulation S-X of the Securities and Exchange Commission. 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 months ended April 30, 2016 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 January 30, 2016 . The three months ended April 30, 2016 had the same number of days as the three months ended May 2, 2015 . All references herein to “fiscal 2017 ,” “fiscal 2016 ” and “fiscal 2015 ” represent the results of the 52 -week fiscal year ending January 28, 2017 and the 52 -week fiscal years ended January 30, 2016 and January 31, 2015 , respectively. New Accounting Guidance Changes in Accounting Policies In February 2015, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. The Company adopted this guidance effective January 31, 2016. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements or related disclosures. In April 2015, the FASB issued authoritative guidance to simplify the presentation of debt issuance costs by requiring such costs to be presented as a deduction from the corresponding debt liability. The Company adopted this guidance effective January 31, 2016. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements or related disclosures. In April 2015, the FASB issued authoritative guidance which provides clarification on accounting for cloud computing arrangements which include a software license. The Company adopted this guidance effective January 31, 2016. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements or related disclosures. In September 2015, the FASB issued authoritative guidance that eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. The Company adopted this guidance effective January 31, 2016. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements or related disclosures. Recently Issued Accounting Guidance 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. During the first quarter of fiscal 2017, the FASB issued additional clarification guidance on the new revenue recognition standard which also included certain scope improvements and practical expedients. The standard (including clarification guidance issued) is effective for fiscal periods beginning after December 15, 2017, which will be the Company’s first quarter of fiscal 2019, and allows for either full retrospective or modified retrospective adoption. Early adoption is permitted for fiscal periods beginning after December 15, 2016, which will be the Company’s first quarter of fiscal 2018. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures, including the choice of application method upon adoption. In July 2015, the FASB issued authoritative guidance to simplify the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. This guidance is effective for fiscal years beginning after December 15, 2016, which will be the Company’s first quarter of fiscal 2018, and requires prospective adoption, with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements or related disclosures. In January 2016, the FASB issued authoritative guidance which requires equity investments not accounted for under the equity method of accounting or consolidation accounting to be measured at fair value, with subsequent changes in fair value recognized in net income. This guidance also addresses other recognition, measurement, presentation and disclosure requirements for financial instruments. This guidance is effective for fiscal years beginning after December 15, 2017, which will be the Company’s first quarter of fiscal 2019, and requires a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures. In February 2016, the FASB issued a comprehensive new lease standard which will supersede previous lease guidance. The standard requires a lessee to recognize assets and liabilities related to long-term leases that were classified as operating leases under previous guidance in its balance sheet. An asset would be recognized related to the right to use the underlying asset and a liability would be recognized related to the obligation to make lease payments over the term of the lease. The standard also requires expanded disclosures surrounding leases. The standard is effective for fiscal periods beginning after December 15, 2018, which will be the Company’s first quarter of fiscal 2020, and requires modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures, but expects there will be a significant increase in its long-term assets and liabilities resulting from the adoption. In March 2016, the FASB issued authoritative guidance to simplify the accounting for certain aspects of share-based compensation. This guidance requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. This guidance also addresses other recognition, measurement and presentation requirements for share-based compensation. This guidance is effective for fiscal years beginning after December 15, 2016, which will be the Company’s first quarter of fiscal 2018, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Apr. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share represents net earnings (loss) attributable to common stockholders divided by the weighted average number of common shares outstanding during the period. The weighted average number of common shares outstanding does not include restricted stock units with forfeitable dividend rights that have been classified as issued and outstanding but are considered contingently returnable as a result of certain service conditions. These restricted stock units are considered common equivalent shares outstanding and are excluded from the basic earnings (loss) per share calculation until the respective service conditions have been met. Diluted earnings (loss) per share represents net earnings (loss) 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 (loss) attributable to common stockholders for purposes of calculating basic and diluted earnings (loss) 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. In addition, the Company has granted certain nonvested stock units that are subject to certain performance-based or market-based vesting conditions as well as continued service requirements through the respective vesting periods. These nonvested stock units are included in the computation of diluted net earnings (loss) per common share attributable to common stockholders only to the extent that the underlying performance-based or market-based vesting conditions are satisfied as of the end of the reporting period, or would be considered satisfied if the end of the reporting period were the end of the related contingency period, and the results would be dilutive under the treasury stock method. The computation of basic and diluted net earnings (loss) per common share attributable to common stockholders is as follows (in thousands, except per share data): Three Months Ended Apr 30, 2016 May 2, 2015 Net earnings (loss) attributable to Guess?, Inc. $ (25,178 ) $ 3,341 Less net earnings attributable to nonvested restricted stockholders 150 84 Net earnings (loss) attributable to common stockholders $ (25,328 ) $ 3,257 Weighted average common shares used in basic computations 83,514 84,965 Effect of dilutive securities: Stock options and restricted stock units — 134 Weighted average common shares used in diluted computations 83,514 85,099 Net earnings (loss) per common share attributable to common stockholders: Basic $ (0.30 ) $ 0.04 Diluted $ (0.30 ) $ 0.04 For the three months ended April 30, 2016 and May 2, 2015 , equity awards granted for 3,022,961 and 2,124,253 , respectively, of the Company’s common shares were outstanding but were excluded from the computation of diluted weighted average common shares and common equivalent shares outstanding because the assumed proceeds, as calculated under the treasury stock method, resulted in these awards being antidilutive. For three months ended April 30, 2016 and May 2, 2015 , the Company also excluded 602,816 and 175,866 nonvested stock units, respectively, which were subject to the achievement of performance-based or market-based vesting conditions from the computation of diluted weighted average common shares and common equivalent shares outstanding because these conditions were not achieved as of the end of each of the respective periods. For the three months ended April 30, 2016 , there were 249,003 potentially dilutive shares that were not included in the computation of diluted weighted average common shares and common equivalent shares outstanding because their effect would have been antidilutive given the Company’s net loss. Share Repurchase Program On June 26, 2012, the Company’s Board of Directors authorized a program to repurchase, from time-to-time and as market and business conditions warrant, up to $ 500 million of the Company’s common stock. Repurchases under the program 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 the program, which may be discontinued at any time, without prior notice. As of April 30, 2016 , the Company had remaining authority under the program to purchase $ 451.8 million of its common stock. There were no share repurchases during the three months ended April 30, 2016 and May 2, 2015 . |
Stockholders' Equity and Redeem
Stockholders' Equity and Redeemable Noncontrolling Interests | 3 Months Ended |
Apr. 30, 2016 | |
Stockholders' Equity and Redeemable Noncontrolling Interests [Abstract] | |
Stockholders' Equity and Redeemable Noncontrolling Interests | Stockholders’ Equity and Redeemable Noncontrolling Interests A reconciliation of common stock outstanding, treasury stock and 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 January 30, 2016 and three months ended April 30, 2016 is as follows (in thousands, except share data): Shares Stockholders’ Equity Common Stock Treasury Stock Guess?, Inc. Stockholders’ Equity Nonredeemable Noncontrolling Interests Total Redeemable Noncontrolling Interests Balance at January 31, 2015 85,323,154 54,235,846 $ 1,073,856 $ 15,590 $ 1,089,446 $ 4,437 Net earnings — — 81,851 2,964 84,815 — Foreign currency translation adjustment — — (36,083 ) (1,661 ) (37,744 ) (476 ) Gain on derivative financial instruments designated as cash flow hedges, net of income tax of ($559) — — 95 — 95 — Loss on marketable securities, net of income tax of $7 — — (12 ) — (12 ) — Actuarial valuation gain (loss) and related amortization, plan amendment, curtailment, prior service credit amortization and foreign currency and other adjustments on defined benefit plans, net of income tax of ($2,972) — — 5,011 — 5,011 — Issuance of common stock under stock compensation plans, net of tax effect 469,937 — (4,023 ) — (4,023 ) — Issuance of stock under Employee Stock Purchase Plan 40,846 (40,846 ) 660 — 660 — Share-based compensation — — 18,880 — 18,880 — Dividends — — (77,287 ) — (77,287 ) — Share repurchases (2,000,000 ) 2,000,000 (44,053 ) — (44,053 ) — Noncontrolling interest capital contribution — — — — — 871 Noncontrolling interest capital distribution — — — (4,075 ) (4,075 ) — Redeemable noncontrolling interest redemption value adjustment — — (420 ) — (420 ) 420 Balance at January 30, 2016 83,833,937 56,195,000 $ 1,018,475 $ 12,818 $ 1,031,293 $ 5,252 Net earnings (loss) — — (25,178 ) 24 (25,154 ) — Foreign currency translation adjustment — — 42,631 521 43,152 406 Loss on derivative financial instruments designated as cash flow hedges, net of income tax of $2,634 — — (11,025 ) — (11,025 ) — Gain on marketable securities, net of minimal tax effect — — 1 — 1 — Actuarial valuation and prior service credit amortization and foreign currency and other adjustments on defined benefit plans, net of income tax of ($4) — — (89 ) — (89 ) — Issuance of common stock under stock compensation plans, net of tax effect 482,936 — (640 ) — (640 ) — Issuance of stock under Employee Stock Purchase Plan 9,448 (9,448 ) 150 — 150 — Share-based compensation — — 4,232 — 4,232 — Dividends — — (19,137 ) — (19,137 ) — Noncontrolling interest capital contribution — — — — — 1,876 Redeemable noncontrolling interest redemption value adjustment — — (670 ) — (670 ) 670 Balance at April 30, 2016 84,326,321 56,185,552 $ 1,008,750 $ 13,363 $ 1,022,113 $ 8,204 Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss), net of related income taxes, for the three months ended April 30, 2016 and May 2, 2015 are as follows (in thousands): Three Months Ended Apr 30, 2016 Foreign Currency Translation Adjustment Derivative Financial Instruments Designated as Cash Flow Hedges Marketable Securities Defined Benefit Plans Total Balance at January 30, 2016 $ (157,652 ) $ 7,252 $ (15 ) $ (7,639 ) $ (158,054 ) Gains (losses) arising during the period 42,631 (9,880 ) 1 (149 ) 32,603 Reclassification to net loss for (gains) losses realized — (1,145 ) — 60 (1,085 ) Net other comprehensive income (loss) 42,631 (11,025 ) 1 (89 ) 31,518 Balance at April 30, 2016 $ (115,021 ) $ (3,773 ) $ (14 ) $ (7,728 ) $ (126,536 ) Three Months Ended May 2, 2015 Foreign Currency Translation Adjustment Derivative Financial Instruments Designated as Cash Flow Hedges Marketable Securities Defined Benefit Plans Total Balance at January 31, 2015 $ (121,569 ) $ 7,157 $ (3 ) $ (12,650 ) $ (127,065 ) Losses arising during the period (339 ) (926 ) (4 ) — (1,269 ) Reclassification to net earnings for (gains) losses realized — (1,935 ) — 306 (1,629 ) Net other comprehensive income (loss) (339 ) (2,861 ) (4 ) 306 (2,898 ) Balance at May 2, 2015 $ (121,908 ) $ 4,296 $ (7 ) $ (12,344 ) $ (129,963 ) Details on reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss) during the three months ended April 30, 2016 and May 2, 2015 are as follows (in thousands): Three Months Ended Location of (Gain) Loss Reclassified from Accumulated OCI into Earnings (Loss) Apr 30, 2016 May 2, 2015 Derivative financial instruments designated as cash flow hedges: Foreign exchange currency contracts $ (1,435 ) $ (1,750 ) Cost of product sales Foreign exchange currency contracts (32 ) (486 ) Other income/expense Interest rate swap 51 — Interest expense Less income tax effect 271 301 Income tax expense (benefit) (1,145 ) (1,935 ) Defined benefit plans: Actuarial loss amortization 86 513 (1) Prior service credit amortization (7 ) (58 ) (1) Less income tax effect (19 ) (149 ) Income tax expense (benefit) 60 306 Total reclassifications during the period $ (1,085 ) $ (1,629 ) __________________________________ (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic defined benefit 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 is classified as a redeemable noncontrolling interest outside of permanent equity. The redemption value of the Guess Sud redeemable put arrangement was $ 4.6 million and $ 3.7 million as of April 30, 2016 and January 30, 2016 , respectively. In May 2016, the Company acquired the remaining 40% interest from the noncontrolling interest holder. The Company is also party to a put arrangement with respect to the common securities that represent the remaining noncontrolling interest for its majority-owned subsidiary, Guess Brasil Comércio e Distribuição S.A. (“Guess Brazil”), which was established through a majority-owned joint venture during fiscal 2014. The put arrangement for Guess Brazil, representing 40% of the total outstanding equity interest of that subsidiary, may be exercised at the discretion of the noncontrolling interest holder by providing written notice to the Company beginning in the sixth year of the agreement, or sooner in certain limited circumstances, and every third anniversary from the end of the sixth year 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 and is classified as a redeemable noncontrolling interest outside of permanent equity in the Company’s condensed consolidated balance sheet. During the three months ended April 30, 2016 , the Company and the noncontrolling interest holder increased their capital contributions by $1.0 million , of which $0.6 million was paid by the Company and the remaining amount was paid by the noncontrolling interest holder to retain the same pro-rata interest in Guess Brazil. The carrying value of the redeemable noncontrolling interest related to Guess Brazil was $1.2 million and $0.7 million as of April 30, 2016 and January 30, 2016 , respectively. During fiscal 2016, the Company entered into a new majority-owned joint venture to establish Guess? CIS, LLC (“Guess CIS”) which is based in Russia. The Company made an initial contribution of $ 2.0 million to obtain a 70% interest in Guess CIS and is party to a put arrangement with respect to the common securities that represent the remaining noncontrolling interest. During the three months ended April 30, 2016 , the Company and the noncontrolling interest holder increased their capital contributions by $5.0 million , of which $3.5 million was paid by the Company and the remaining amount was paid by the noncontrolling interest holder to retain the same pro-rata interest in Guess CIS. The put arrangement may be exercised at the discretion of the noncontrolling interest holder by providing written notice to the Company during the period beginning after the fifth anniversary of the agreement through December 31, 2025 , or sooner in certain limited circumstances. The redemption value of the Guess CIS put arrangement is based on a multiple of Guess CIS’s earnings before interest, taxes, depreciation and amortization subject to certain adjustments and is classified as a redeemable noncontrolling interest outside of permanent equity in the Company’s condensed consolidated balance sheet. The carrying value of the redeemable noncontrolling interest related to Guess CIS was $2.4 million and $ 0.9 million as of April 30, 2016 and January 30, 2016 , respectively. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Apr. 30, 2016 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable is summarized as follows (in thousands): Apr 30, 2016 Jan 30, 2016 Trade $ 188,769 $ 222,972 Royalty 13,273 16,443 Other 8,770 16,493 210,812 255,908 Less allowances 33,143 33,549 $ 177,669 $ 222,359 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 the Americas and Asia, royalty receivables relating to its licensing operations and certain other receivables . Other receivables generally relate to amounts due to the Company that result from activities that are not related to the direct sale of the Company’s products or collection of royalties. 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 | 3 Months Ended |
Apr. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in thousands): Apr 30, 2016 Jan 30, 2016 Raw materials $ 2,251 $ 2,043 Work in progress 116 92 Finished goods 355,824 309,569 $ 358,191 $ 311,704 The above balances include an allowance to write down inventories to the lower of cost or market of $ 18.9 million and $ 15.9 million as of April 30, 2016 and January 30, 2016 , respectively. |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Apr. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges During the first quarter of fiscal 2017, the Company initiated a global cost reduction and restructuring plan to better align its global cost and organizational structure with its current strategic initiatives. This plan includes the consolidation and streamlining of the Company’s business processes and a reduction in its global workforce and other expenses. These actions resulted in restructuring charges of $6.1 million related primarily to cash-based severance costs during the three months ended April 30, 2016 . As of April 30, 2016 , the Company had a balance of approximately $5.1 million in accrued expenses for amounts expected to be paid during the remainder of fiscal 2017. The Company currently estimates that it may incur an additional $1 million to $2 million in future cash-based severance charges during the remainder of fiscal 2017. The Company’s assessment of the costs associated with the restructuring-related activities is still ongoing and actual amounts could differ significantly from these estimates as plans evolve, details are finalized and negotiations are completed. The following table summarizes restructuring activities related primarily to severance during the three months ended April 30, 2016 (in thousands): Total Balance at January 30, 2016 $ — Charges to operations 6,083 Cash payments (930 ) Foreign currency and other adjustments (7 ) Balance at April 30, 2016 $ 5,146 During the three months ended April 30, 2016 , the Company also incurred an estimated exit tax charge of approximately $1.9 million related to its reorganization in Europe as a result of the global cost reduction and restructuring plan. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense (benefit) 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 de creased to 16.0% for the three months ended April 30, 2016 from 41.5% for the three months ended May 2, 2015 . The change in the effective income tax rate was due primarily to a shift in the distribution of earnings among the Company’s tax jurisdictions within the quarters of the current fiscal year and more losses incurred in certain foreign jurisdictions where the Company has valuation allowances during the three months ended April 30, 2016 compared to the same prior-year period. From time-to-time, the Company is subject to routine income tax audits on various tax matters around the world in the ordinary course of business. As of April 30, 2016 , several income tax audits were underway for various periods in multiple jurisdictions. 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 $ 14.9 million and $13.9 million as of April 30, 2016 and January 30, 2016 , respectively. The change in the accrual balance from January 30, 2016 to April 30, 2016 resulted from interest and penalties and additional accruals during the three months ended April 30, 2016 . |
Segment Information
Segment Information | 3 Months Ended |
Apr. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s businesses are grouped into five reportable segments for management and internal financial reporting purposes: Americas Retail , Europe , Asia , Americas Wholesale and Licensing . The Company’s operating segments are the same as its reportable segments. 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 how each segment’s performance is evaluated by the Company’s chief operating decision maker to assess performance and make resource allocation decisions. The Americas Retail segment includes the Company’s retail and e-commerce operations in North and Central America and its retail operations in South America. The Europe segment includes the Company’s retail, e-commerce and wholesale operations in Europe and the Middle East. The Asia segment includes the Company’s retail, e-commerce and wholesale operations in Asia. The Americas Wholesale segment includes the Company’s wholesale operations in the Americas. 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 months ended April 30, 2016 and May 2, 2015 (in thousands): Three Months Ended Apr 30, 2016 May 2, 2015 Net revenue: Americas Retail $ 204,161 $ 214,249 Europe 135,380 137,397 Asia 54,129 64,035 Americas Wholesale 32,798 37,278 Licensing 22,347 25,865 Total net revenue $ 448,815 $ 478,824 Earnings (loss) from operations: Americas Retail $ (12,601 ) $ (7,209 ) Europe (14,085 ) (3,668 ) Asia (669 ) 4,613 Americas Wholesale 5,611 6,747 Licensing 20,415 23,025 Corporate Overhead (21,566 ) (19,155 ) Restructuring Charges (6,083 ) — Total earnings (loss) from operations $ (28,978 ) $ 4,353 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 months ended April 30, 2016 related to plans to better align the Company’s global cost and organizational structure with its current strategic initiatives. Refer to Note 6 for more information regarding these restructuring charges. |
Borrowings and Capital Lease Ob
Borrowings and Capital Lease Obligations | 3 Months Ended |
Apr. 30, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings and Capital Lease Obligations | Borrowings and Capital Lease Obligations Borrowings and capital lease obligations are summarized as follows (in thousands): Apr 30, 2016 Jan 30, 2016 Mortgage debt, maturing monthly through January 2026 $ 21,299 $ — European capital lease, maturing quarterly through May 2016 3,893 4,024 Other 2,790 2,318 27,982 6,342 Less current installments 4,443 4,024 Long-term debt $ 23,539 $ 2,318 Mortgage Debt On February 16, 2016, the Company entered into a ten -year $ 21.5 million real estate secured loan (the “Mortgage Debt”). The Mortgage Debt is secured by the Company’s U.S. distribution center based in Louisville, Kentucky and provides for monthly principal and interest payments based on a 25 -year amortization schedule, with the remaining principal balance and any accrued and unpaid interest due at maturity. Outstanding principal balances under the Mortgage Debt bear interest at the one-month LIBOR rate plus 1.5% . As of April 30, 2016 , outstanding borrowings under the Mortgage Debt, net of debt issuance costs of $0.1 million , were $21.3 million . The Mortgage Debt requires the Company to comply with a fixed charge coverage ratio on a trailing four-quarter basis if consolidated cash, cash equivalents and short term investment balances fall below certain levels. In addition, the Mortgage Debt contains customary covenants, including covenants that limit or restrict the Company’s ability to incur liens on the mortgaged property and enter into certain contractual obligations. Upon the occurrence of an event of default under the Mortgage Debt, the lender may terminate the Mortgage Debt and declare all amounts outstanding to be immediately due and payable. The Mortgage Debt specifies a number of events of default (some of which are subject to applicable grace or cure periods), including, among other things, non-payment defaults, covenant defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency defaults and material judgment defaults. On February 16, 2016, the Company also entered into a separate interest rate swap agreement, designated as a cash flow hedge, that resulted in a swap fixed rate of approximately 3.06% . This interest rate swap agreement matures in January 2026 and converts the nature of the Mortgage Debt from LIBOR floating-rate debt to fixed-rate debt. The fair value of the interest rate swap liability as of April 30, 2016 was approximately $ 0.1 million . Capital Lease The Company leases a building in Florence, Italy under a capital lease which provides for minimum lease payments through May 1, 2016 . As of April 30, 2016 , the capital lease obligation was $ 3.9 million , which was paid during the second quarter of fiscal 2017. 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 matured on February 1, 2016 and had converted the nature of the capital lease obligation from Euribor floating-rate debt to fixed-rate debt. Credit Facilities On June 23, 2015, the Company entered into a five -year senior secured asset-based revolving credit facility with Bank of America, N.A. and the other lenders party thereto (the “Credit Facility”). The Credit Facility provides for a borrowing capacity in an amount up to $ 150 million , including a Canadian sub-facility up to $ 50 million , subject to a borrowing base. Based on applicable accounts receivable, inventory and eligible cash balances as of April 30, 2016 , the Company could have borrowed up to $148 million under the Credit Facility. The Credit Facility has an option to expand the borrowing capacity by up to $ 150 million subject to certain terms and conditions, including the willingness of existing or new lenders to assume such increased amount. The Credit Facility is available for direct borrowings and the issuance of letters of credit, subject to certain letters of credit sublimits, and may be used for working capital and other general corporate purposes. All obligations under the Credit Facility are unconditionally guaranteed by the Company and the Company’s existing and future domestic and Canadian subsidiaries, subject to certain exceptions, and are secured by a first priority lien on substantially all of the assets of the Company and such domestic and Canadian subsidiaries , as applicable. Direct borrowings under the Credit Facility made by the Company and its domestic subsidiaries shall bear interest at the U.S. base rate plus an applicable margin (varying from 0.25% to 0.75% ) or at LIBOR plus an applicable margin (varying from 1.25% to 1.75% ). The U.S. base rate is based on the greater of (i) the U.S. prime rate, (ii) the federal funds rate, plus 0.5% , and (iii) LIBOR for a 30 day interest period, plus 1.0% . Direct borrowings under the Credit Facility made by the Company’s Canadian subsidiaries shall bear interest at the Canadian prime rate plus an applicable margin (varying from 0.25% to 0.75% ) or at the Canadian BA rate plus an applicable margin (varying from 1.25% to 1.75% ). The Canadian prime rate is based on the greater of (i) the Canadian prime rate, (ii) the Bank of Canada overnight rate, plus 0.5% , and (iii) the Canadian BA rate for a one month interest period, plus 1.0% . The applicable margins are calculated quarterly and vary based on the average daily availability of the aggregate borrowing base. The Company is also obligated to pay certain commitment, letter of credit and other fees customary for a credit facility of this size and type. As of April 30, 2016 , the Company had $ 1.7 million in outstanding standby letters of credit, $0.4 million in outstanding documentary letters of credit and no outstanding borrowings under the Credit Facility. The Credit Facility requires the Company to comply with a fixed charge coverage ratio on a trailing four-quarter basis if a default or an event of default occurs under the Credit Facility or if the borrowing capacity falls below certain levels. In addition, the Credit Facility contains customary covenants, including covenants that limit or restrict the Company and certain of its subsidiaries’ ability to: incur liens, incur indebtedness, make investments, dispose of assets, make certain restricted payments, merge or consolidate and enter into certain transactions with affiliates. Upon the occurrence of an event of default under the Credit Facility, the lenders may cease making loans, terminate the Credit Facility and declare all amounts outstanding to be immediately due and payable. The Credit Facility specifies a number of events of default (some of which are subject to applicable grace or cure periods), including, among other things, non-payment defaults, covenant defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency defaults and material judgment defaults. The Credit Facility allows for both secured and unsecured borrowings outside of the Credit Facility up to specified amounts. 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 April 30, 2016 , the Company could have borrowed up to $ 65.6 million under these agreements. As of April 30, 2016 , the Company had no outstanding borrowings and $ 0.8 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 0.4% to 6.8% . 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 $ 40.1 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. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Apr. 30, 2016 | |
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 months ended April 30, 2016 and May 2, 2015 (in thousands): Three Months Ended Apr 30, 2016 May 2, 2015 Stock options $ 512 $ 481 Stock awards/units 3,678 3,087 Employee Stock Purchase Plan 42 44 Total share-based compensation expense $ 4,232 $ 3,612 Unrecognized compensation cost, adjusted for estimated forfeitures, related to nonvested stock options and nonvested stock awards/units totaled approximately $ 4.9 million and $ 31.6 million , respectively, as of April 30, 2016 . This cost is expected to be recognized over a weighted average period of 1.9 years. The weighted average grant date fair value of options granted was $3.56 and $3.62 during the three months ended April 30, 2016 and May 2, 2015 , respectively. Grants On April 29, 2016, the Company granted select key management 602,816 nonvested stock units which are subject to certain performance-based vesting or market-based vesting conditions. On July 7, 2015, the Company granted Victor Herrero, the Company’s Chief Executive Officer, 600,000 stock options and 250,000 nonvested stock units in connection with an employment agreement entered into between the Company and Mr. Herrero (the “Herrero Employment Agreement”). Mr. Herrero was also granted 150,000 restricted stock units which are considered contingently returnable as a result of certain service conditions set forth in the Herrero Employment Agreement. Annual Grants On March 30, 2016, the Company made an annual grant of 616,450 stock options and 442,000 nonvested stock awards/units to its employees. On April 2, 2015, the Company made an annual grant of 577,700 stock options and 401,700 nonvested stock awards/units to its employees. Performance-Based Awards The Company has granted certain nonvested stock units subject to performance-based vesting conditions to select executive officers. Each award of nonvested stock units generally has an initial vesting period from the date of the grant through the end of the first fiscal year followed by annual vesting periods which may range from two -to- three years. The nonvested stock units are subject to the achievement of certain performance-based vesting conditions during the first fiscal year of the grant as well as continued service requirements through each of the vesting periods. The Company has also granted a target number of nonvested stock units to select key management, including certain executive officers. The number of shares that may ultimately vest with respect to each award may range from 0% up to 200% of the target number of shares, subject to the achievement of certain performance-based vesting conditions which may relate to the first fiscal year of the grant or the third fiscal year of the grant. Any shares that are ultimately issued are scheduled to vest at the end of the third fiscal year following the grant date. The following table summarizes the activity for nonvested performance-based units during the three months ended April 30, 2016 : Number of Units Weighted Average Grant Date Fair Value Nonvested at January 30, 2016 580,000 $ 22.65 Granted 462,359 18.35 Vested (179,422 ) 28.05 Forfeited — — Nonvested at April 30, 2016 862,937 $ 19.22 Market-Based Awards The Company has granted certain nonvested stock units subject to market-based vesting conditions to select executive officers. The number of shares that may ultimately vest will equal 0% to 150% of the target number of shares, subject to the performance of the Company’s total stockholder return (“TSR”) relative to the TSR of a select group of peer companies over a three-year period. Vesting is also subject to continued service requirements through the vesting date. The following table summarizes the activity for nonvested market-based units during the three months ended April 30, 2016 : Number of Units Weighted Nonvested at January 30, 2016 183,368 $ 17.72 Granted 140,457 15.20 Vested — — Forfeited — — Nonvested at April 30, 2016 323,825 $ 16.63 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Apr. 30, 2016 | |
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 and member of the Board of the Company, and Maurice Marciano, Chairman Emeritus and member of the Board, 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 as of April 30, 2016 with expiration dates ranging from calendar years 2017 to 2020 . In January 2016, the Company sold an approximately 140,000 square foot parking lot located adjacent to the Company’s corporate headquarters to a partnership affiliated with the Marciano Trusts for a sales price of $7.5 million , which was subsequently collected during the first quarter of fiscal 2017. Concurrent with the sale, the Company entered into a lease agreement to lease back the parking lot from the purchaser. During the fourth quarter of fiscal 2016, the Company recognized a net gain of approximately $3.4 million in other income as a result of these transactions. Aggregate rent, common area maintenance charges and property tax expense recorded under these four related party leases for the three months ended April 30, 2016 and May 2, 2015 was $ 1.2 million and $ 1.4 million , respectively. The Company believes that the terms of the related party leases and parking lot sale 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 informal arrangements with MPM Financial and independent third party management companies contracted by MPM Financial to manage its aircraft. The total fees paid under these arrangements for the three months ended April 30, 2016 were approximately $ 0.3 million . There were no fees paid under these arrangements for the three months ended May 2, 2015 . 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 January 30, 2016 . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2016 | |
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. The Company’s concession leases also provide for rents primarily based upon a percentage of annual sales volume which average approximately 34% of annual sales volume. 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 March 2021 . As discussed in further detail in Note 9, the Company leases a building in Florence, Italy under a capital lease which provides for minimum lease payments through May 1, 2016 . 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 Intermediate People’s Court of Nanjing, China and the Court of Paris, France. 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. On September 15, 2014, the Court of Appeal of Milan affirmed the majority of the lower Court’s ruling in favor of the Company, but overturned the lower Court’s finding with respect to an unfair competition claim. That portion of the matter is now in a damages phase based on the ruling. On October 16, 2015, the plaintiff appealed the remainder of the Court of Appeal of Milan’s ruling in favor of the Company to the Italian Supreme Court of Cassation. 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. On January 30, 2015, the Court of Paris ruled in favor of the Company, rejecting all of the plaintiff’s claims and partially canceling two of the plaintiff’s community trademark registrations and one of the plaintiff’s international trademark registrations. On February 17, 2015, the plaintiff appealed the Court of Paris’ ruling. 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. In July 2015, the parties entered into a Memorandum of Understanding to settle the matter for $5.25 million , subject to certain limited offsets. The Court issued a final order and judgment approving the settlement in February 2016. The Company has received customs tax assessment notices from the Italian Customs Agency regarding its customs tax audit of one of the Company’s European subsidiaries for the period from July 2010 through December 2012 . Such assessments totaled € 9.8 million ($ 11.2 million ), including potential penalties and interest. The Company strongly disagrees with the positions that the Italian Customs Agency has taken and therefore filed appeals with the Milan First Degree Tax Court (“MFDTC”). In May 2015, the MFDTC issued a judgment in favor of the Company in relation to the first set of appeals (covering the period through September 2010 ) and canceled the related assessments totaling € 1.7 million ($ 1.9 million ). In November 2015, the Italian Customs Agency notified the Company of its intent to appeal this first MFDTC judgment. During the first quarter of fiscal 2017, the MFDTC issued judgments in favor of the Company in relation to the second, third and fourth set of appeals (covering the period from October 2010 through June 2011 ) as well as a portion of the seventh set of appeals (covering the period from August 2012 through December 2012 ) and canceled the related assessments totaling €3.3 million ( $3.8 million ). While these MFDTC judgments have been favorable to the Company , there can be no assurances that the Company’s remaining open appeals for July 2011 through December 2012 will be successful. There also can be no assurances that the Italian Customs Agency will not be successful in its appeal of the first MFDTC judgment or that they will not appeal the other favorable MFDTC judgments. It also continues to be possible that the Company will receive similar or even larger assessments for periods subsequent to December 2012 or other claims or charges related to the matter in the future. Although the Company believes that it has a strong position and will continue to vigorously defend each of the 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 resolutions of which are not expected to have a material adverse effect on the Company’s financial position or results of operations. |
Defined Benefit Plans
Defined Benefit Plans | 3 Months Ended |
Apr. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Defined Benefit Plans | Defined Benefit Plans Supplemental Executive Retirement Plan On August 23, 2005, the Board of Directors of the Company adopted a Supplemental Executive Retirement Plan (“SERP”) which became effective January 1, 2006. The SERP provides select employees who satisfy certain eligibility requirements with certain benefits upon retirement, termination of employment, death, disability or a change in control of the Company, in certain prescribed circumstances. In fiscal 2016, the SERP was amended in connection with Paul Marciano’s transition from Chief Executive Officer to Executive Chairman of the Board and Chief Creative Officer. This amendment effectively eliminated any future salary progression by finalizing compensation levels for future benefits. Mr. Marciano will continue to be eligible to receive SERP benefits in the future in accordance with the amended terms of the SERP. Subsequent to this amendment, there are no employees considered actively participating under the terms of the SERP. As a result , the Company included an actuarial gain of $11.4 million before taxes in accumulated other comprehensive income (loss) during fiscal 2016. In addition, the Company also recognized a curtailment gain of $1.7 million before taxes related to the accelerated amortization of the remaining prior service credit during fiscal 2016 . The actuarial and curtailment gains were recorded during the three months ended August 1, 2015. As a non-qualified pension plan, no dedicated funding of the SERP is required; however, the Company has made 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, if any, may vary depending on investment performance of the trust. The cash surrender values of the insurance policies were $ 55.6 million and $ 52.5 million as of April 30, 2016 and January 30, 2016 , 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 $ 3.2 million and $ 2.0 million in other income during the three months ended April 30, 2016 and May 2, 2015 , respectively. The Company also recorded realized gains of $0.1 million and $0.7 million in other income resulting from payout on the insurance policies during the three months ended April 30, 2016 and May 2, 2015 , respectively. The projected benefit obligation was $53.5 million and $53.4 million as of April 30, 2016 and January 30, 2016 , 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 $0.4 million were made during each of the three months ended April 30, 2016 and May 2, 2015 . The components of net periodic defined benefit pension cost for the three months ended April 30, 2016 and May 2, 2015 related to the SERP are as follows (in thousands): Three Months Ended Apr 30, 2016 May 2, 2015 Interest cost $ 460 $ 496 Net amortization of unrecognized prior service credit — (58 ) Net amortization of actuarial losses 39 428 Net periodic defined benefit pension cost $ 499 $ 866 Swiss Pension Plan In accordance with local regulations, the Company also maintains a pension plan in Switzerland for certain of its employees. The plan is a government-mandated defined contribution plan that provides employees with a minimum investment return determined annually by the Swiss government, and as such, is treated under pension accounting in accordance with authoritative guidance. Under the plan, both the Company and certain of its employees with annual earnings in excess of government determined amounts are required to make contributions into a fund managed by an independent investment fiduciary. The Company’s contributions must be made in an amount at least equal to the employee’s contribution. Minimum employee contributions are based on the respective employee’s age, salary and gender. As of April 30, 2016 and January 30, 2016 , the plan had a projected benefit obligation of CHF 15.8 million (US$ 16.5 million ) and CHF 15.6 million (US$ 15.2 million ), respectively, and plan assets held at the independent investment fiduciary of CHF 13.2 million (US$ 13.8 million ) and CHF 13.0 million (US$ 12.7 million ), respectively. The net liability of CHF 2.6 million (US$ 2.7 million ) and CHF 2.6 million (US$ 2.5 million ) was included in other long-term liabilities in the Company’s condensed consolidated balance sheets as of April 30, 2016 and January 30, 2016 , respectively. During the three months ended April 30, 2016 and May 2, 2015 , the Company recognized net periodic defined benefit pension cost of CHF 0.4 million (US$ 0.4 million ) and CHF 0.4 million (US$ 0.5 million ), respectively, resulting primarily from service cost. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 30, 2016 | |
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 April 30, 2016 and January 30, 2016 (in thousands): Fair Value Measurements at Apr 30, 2016 Fair Value Measurements at Jan 30, 2016 Recurring Fair Value Measures Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Foreign exchange currency contracts $ — $ 117 $ — $ 117 $ — $ 9,797 $ — $ 9,797 Available-for-sale securities 18 — — 18 17 — — 17 Total $ 18 $ 117 $ — $ 135 $ 17 $ 9,797 $ — $ 9,814 Liabilities: Foreign exchange currency contracts $ — $ 9,597 $ — $ 9,597 $ — $ 366 $ — $ 366 Interest rate swaps — 81 — 81 — 37 — 37 Deferred compensation obligations — 11,112 — 11,112 — 10,155 — 10,155 Total $ — $ 20,790 $ — $ 20,790 $ — $ 10,558 $ — $ 10,558 There were no transfers of financial instruments between the three levels of fair value hierarchy during the three months ended April 30, 2016 or during the year ended January 30, 2016 . The fair values of the Company ’ s available-for-sale securities are based on quoted prices. The fair values of the interest rate swaps are based upon inputs corroborated by observable market data . Foreign exchange currency 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 exchange currency 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 currency 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, which consist of marketable equity securities, are recorded at fair value and are included in other assets in the accompanying condensed consolidated balance sheets. As of April 30, 2016 and January 30, 2016 , available-for-sale securities were minimal. Unrealized gains (losses), net of taxes, are included as a component of stockholders ’ equity and comprehensive income (loss). As of April 30, 2016 and January 30, 2016 , the accumulated unrealized losses , net of taxes, included in accumulated other comprehensive income (loss) related to available-for-sale securities owned by the Company were minimal. 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. As of April 30, 2016 and January 30, 2016 , the carrying value of all financial instruments was not materially different from fair value, as the interest rates on the Company’s debt 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 retail location as an asset group for impairment testing, which is the lowest level at which individual cash flows can be identified. The asset group includes leasehold improvements, furniture, fixtures and equipment, computer hardware and software and certain long-term security deposits and lease acquisition costs. The Company reviews retail locations in penetrated markets for impairment risk once the locations have been opened for at least one year in their current condition, or sooner as changes in circumstances require. The Company believes that waiting one year allows a retail location to reach a maturity level where a more comprehensive analysis of financial performance can be performed. The Company evaluates impairment risk for retail locations in new markets, where the Company is in the early stages of establishing its presence, once brand awareness has been established. The Company also evaluates impairment risk for retail locations that are expected to be closed in the foreseeable future. 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 assets in retail locations are based on management ’ s estimates of future cash flows over the remaining lease period or expected life, if shorter. For expected retail location closures, the Company will evaluate whether it is necessary to shorten the useful life for any of the assets within the respective asset group. The Company will use this revised useful life when estimating the asset group’s future cash flows. The Company considers historical trends, expected future business trends and other factors when estimating the future cash flow for each retail location. The Company also considers factors such as: the local environment for each retail 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 $0.2 million and $1.1 million during the three months ended April 30, 2016 and May 2, 2015 , respectively. The impairment charges related primarily to the impairment of certain retail locations in Europe and North America resulting from under-performance and expected store closures during each of the respective periods. These impairment charges were included in selling, general and administrative expenses in the Company’s condensed consolidated statements of income (loss) for each of the respective periods. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Apr. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Hedging Strategy Foreign Exchange Currency Contracts 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, South Korea and Mexico 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, tax liabilities and pension-related 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 currency 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 exchange currency contracts to hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries. Interest Rate Swap Agreements The Company is exposed to interest rate risk on its floating-rate debt. The Company has entered into interest rate swap agreements 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 floating-rate debt, thus reducing the impact of interest rate changes on future interest payment cash flows. The Company has elected to apply the hedge accounting rules in accordance with authoritative guidance for certain of these contracts. Refer to Note 9 for further information. The impact of the credit risk of the counterparties to the derivative contracts is considered in determining the fair value of the foreign exchange currency contracts and interest rate swap agreements. As of April 30, 2016 , credit risk has not had a significant effect on the fair value of the Company’s foreign exchange currency contracts and interest rate swap agreements. Hedge Accounting Policy Foreign Exchange Currency Contracts 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. The Company has also used U.S. dollar forward contracts 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 exchange currency contracts that are not designated as hedging instruments for accounting purposes. Changes in fair value of foreign exchange currency contracts not designated as hedging instruments are reported in net earnings (loss) as part of other income and expense. Interest Rate Swap Agreements Interest rate swap agreements are used to hedge the variability of the cash flows in interest payments associated with the Company’s floating-rate debt. Changes in the fair value of interest rate swap agreements designated as cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are amortized to interest expense over the term of the related debt. Periodically, the Company may also enter into interest rate swap agreements that are not designated as hedging instruments for accounting purposes. Changes in the fair value of interest rate swap agreements not designated as hedging instruments are reported in net earnings (loss) 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 April 30, 2016 and January 30, 2016 is as follows (in thousands): Derivative Balance Sheet Location Fair Value at Fair Value at ASSETS: Derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange currency contracts Other current assets/ Other assets $ 99 $ 7,491 Derivatives not designated as hedging instruments: Foreign exchange currency contracts Other current assets 18 2,306 Total $ 117 $ 9,797 LIABILITIES: Derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange currency contracts Accrued expenses/ Other long-term liabilities $ 5,667 $ 47 Interest rate swap Other long-term liabilities 81 — Total derivatives designated as hedging instruments 5,748 47 Derivatives not designated as hedging instruments: Foreign exchange currency contracts Accrued expenses 3,930 319 Interest rate swap Accrued expenses — 37 Total derivatives not designated as hedging instruments 3,930 356 Total $ 9,678 $ 403 Derivatives Designated as Hedging Instruments Foreign Exchange Currency Contracts Designated as Cash Flow Hedges During the three months ended April 30, 2016 , the Company purchased U.S. dollar forward contracts in Canada and Europe totaling US $21.3 million and US $18.9 million , respectively, to hedge forecasted merchandise purchases and intercompany royalties that were designated as cash flow hedges. As of April 30, 2016 , the Company had forward contracts outstanding for its European and Canadian operations of US$ 104.8 million and US$ 59.0 million , respectively, which are expected to mature over the next 18 months . As of April 30, 2016 , accumulated other comprehensive income (loss) related to foreign exchange currency contracts included a net unrealized loss of approximately $ 3.7 million , net of tax, of which $ 0.9 million will be recognized in cost of product sales or other expense 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. At January 30, 2016 , the Company had forward contracts outstanding for its European and Canadian operations of US$ 106.3 million and US$ 48.2 million , respectively, that were designated as cash flow hedges. Interest Rate Swap Agreement Designated as Cash Flow Hedge During the three months ended April 30, 2016 , the Company entered into an interest rate swap agreement with a notional amount of $21.5 million , designated as a cash flow hedge, to hedge the variability of cash flows in interest payments associated with the Company’s floating-rate debt. This interest rate swap agreement matures in January 2026 and converts the nature of the Company’s real estate secured term loan from LIBOR floating-rate debt to fixed-rate debt, resulting in a swap fixed rate of approximately 3.06% . As of April 30, 2016 , accumulated other comprehensive income (loss) related to the interest rate swap agreement included a net unrealized loss of approximately $0.1 million , net of tax, which will be recognized in interest expense 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 the gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings (loss) for the three months ended April 30, 2016 and May 2, 2015 (in thousands): Loss Recognized in OCI Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings (Loss) (1) Gain (Loss) Reclassified from Accumulated OCI into Earnings (Loss) Three Months Ended Three Months Ended Apr 30, 2016 May 2, 2015 Apr 30, 2016 May 2, 2015 Derivatives designated as cash flow hedges: Foreign exchange currency contracts $ (11,412 ) $ (1,147 ) Cost of product sales $ 1,435 $ 1,750 Foreign exchange currency contracts $ (699 ) $ (148 ) Other income/expense $ 32 $ 486 Interest rate swap $ (132 ) $ — Interest expense $ (51 ) $ — __________________________________ (1) The Company recognized gains of $0.5 million resulting from the ineffective portion related to foreign exchange currency contracts in interest income during the three months ended April 30, 2016 . The ineffective portion related to foreign exchange currency contracts was immaterial during the three months ended May 2, 2015 . There was no ineffectiveness recognized related to the interest rate swap during the three months ended April 30, 2016 . The following table summarizes net after-tax derivative activity recorded in accumulated other comprehensive income (loss) (in thousands): Three Months Ended Apr 30, 2016 May 2, 2015 Beginning balance gain $ 7,252 $ 7,157 Net losses from changes in cash flow hedges (9,880 ) (926 ) Net gains reclassified to earnings (loss) (1,145 ) (1,935 ) Ending balance gain (loss) $ (3,773 ) $ 4,296 Derivatives Not Designated as Hedging Instruments As of April 30, 2016 , the Company had euro foreign exchange currency contracts to purchase US$ 68.5 million expected to mature over the next 12 months and Canadian dollar foreign exchange currency contracts to purchase US $22.6 million expected to mature over the next 11 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 months ended April 30, 2016 and May 2, 2015 (in thousands): Location of Gain (Loss) Recognized in Earnings (Loss) Gain (Loss) Recognized in Earnings (Loss) Three Months Ended Apr 30, 2016 May 2, 2015 Derivatives not designated as hedging instruments: Foreign exchange currency contracts Other income/expense $ (6,029 ) $ (701 ) Interest rate swap Other income/expense $ 38 $ 49 At January 30, 2016 , the Company had euro foreign exchange currency contracts to purchase US$ 54.8 million and Canadian dollar foreign exchange currency contracts to purchase US$ 25.8 million . |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On May 25, 2016 , the Company announced a regular quarterly cash dividend of $0.225 per share on the Company’s common stock. The cash dividend will be paid on June 24, 2016 to shareholders of record as of the close of business on June 8, 2016 . On May 30, 2016, the Company sold its minority interest equity holding in a privately-held boutique apparel company for net proceeds of approximately € 31 million (US$ 35 million ), which resulted in a gain of approximately € 20 million (US$ 22 million ) that will be recorded in other income during the second quarter of fiscal 2017. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Apr. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Guidance | New Accounting Guidance Changes in Accounting Policies In February 2015, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. The Company adopted this guidance effective January 31, 2016. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements or related disclosures. In April 2015, the FASB issued authoritative guidance to simplify the presentation of debt issuance costs by requiring such costs to be presented as a deduction from the corresponding debt liability. The Company adopted this guidance effective January 31, 2016. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements or related disclosures. In April 2015, the FASB issued authoritative guidance which provides clarification on accounting for cloud computing arrangements which include a software license. The Company adopted this guidance effective January 31, 2016. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements or related disclosures. In September 2015, the FASB issued authoritative guidance that eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. The Company adopted this guidance effective January 31, 2016. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements or related disclosures. Recently Issued Accounting Guidance 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. During the first quarter of fiscal 2017, the FASB issued additional clarification guidance on the new revenue recognition standard which also included certain scope improvements and practical expedients. The standard (including clarification guidance issued) is effective for fiscal periods beginning after December 15, 2017, which will be the Company’s first quarter of fiscal 2019, and allows for either full retrospective or modified retrospective adoption. Early adoption is permitted for fiscal periods beginning after December 15, 2016, which will be the Company’s first quarter of fiscal 2018. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures, including the choice of application method upon adoption. In July 2015, the FASB issued authoritative guidance to simplify the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. This guidance is effective for fiscal years beginning after December 15, 2016, which will be the Company’s first quarter of fiscal 2018, and requires prospective adoption, with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements or related disclosures. In January 2016, the FASB issued authoritative guidance which requires equity investments not accounted for under the equity method of accounting or consolidation accounting to be measured at fair value, with subsequent changes in fair value recognized in net income. This guidance also addresses other recognition, measurement, presentation and disclosure requirements for financial instruments. This guidance is effective for fiscal years beginning after December 15, 2017, which will be the Company’s first quarter of fiscal 2019, and requires a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures. In February 2016, the FASB issued a comprehensive new lease standard which will supersede previous lease guidance. The standard requires a lessee to recognize assets and liabilities related to long-term leases that were classified as operating leases under previous guidance in its balance sheet. An asset would be recognized related to the right to use the underlying asset and a liability would be recognized related to the obligation to make lease payments over the term of the lease. The standard also requires expanded disclosures surrounding leases. The standard is effective for fiscal periods beginning after December 15, 2018, which will be the Company’s first quarter of fiscal 2020, and requires modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures, but expects there will be a significant increase in its long-term assets and liabilities resulting from the adoption. In March 2016, the FASB issued authoritative guidance to simplify the accounting for certain aspects of share-based compensation. This guidance requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. This guidance also addresses other recognition, measurement and presentation requirements for share-based compensation. This guidance is effective for fiscal years beginning after December 15, 2016, which will be the Company’s first quarter of fiscal 2018, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted net earnings (loss) per common share attributable to common stockholders | The computation of basic and diluted net earnings (loss) per common share attributable to common stockholders is as follows (in thousands, except per share data): Three Months Ended Apr 30, 2016 May 2, 2015 Net earnings (loss) attributable to Guess?, Inc. $ (25,178 ) $ 3,341 Less net earnings attributable to nonvested restricted stockholders 150 84 Net earnings (loss) attributable to common stockholders $ (25,328 ) $ 3,257 Weighted average common shares used in basic computations 83,514 84,965 Effect of dilutive securities: Stock options and restricted stock units — 134 Weighted average common shares used in diluted computations 83,514 85,099 Net earnings (loss) per common share attributable to common stockholders: Basic $ (0.30 ) $ 0.04 Diluted $ (0.30 ) $ 0.04 |
Stockholders' Equity and Rede25
Stockholders' Equity and Redeemable Noncontrolling Interests (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Stockholders' Equity and Redeemable Noncontrolling Interests [Abstract] | |
Reconciliation of common stock outstanding, treasury stock and 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 common stock outstanding, treasury stock and 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 January 30, 2016 and three months ended April 30, 2016 is as follows (in thousands, except share data): Shares Stockholders’ Equity Common Stock Treasury Stock Guess?, Inc. Stockholders’ Equity Nonredeemable Noncontrolling Interests Total Redeemable Noncontrolling Interests Balance at January 31, 2015 85,323,154 54,235,846 $ 1,073,856 $ 15,590 $ 1,089,446 $ 4,437 Net earnings — — 81,851 2,964 84,815 — Foreign currency translation adjustment — — (36,083 ) (1,661 ) (37,744 ) (476 ) Gain on derivative financial instruments designated as cash flow hedges, net of income tax of ($559) — — 95 — 95 — Loss on marketable securities, net of income tax of $7 — — (12 ) — (12 ) — Actuarial valuation gain (loss) and related amortization, plan amendment, curtailment, prior service credit amortization and foreign currency and other adjustments on defined benefit plans, net of income tax of ($2,972) — — 5,011 — 5,011 — Issuance of common stock under stock compensation plans, net of tax effect 469,937 — (4,023 ) — (4,023 ) — Issuance of stock under Employee Stock Purchase Plan 40,846 (40,846 ) 660 — 660 — Share-based compensation — — 18,880 — 18,880 — Dividends — — (77,287 ) — (77,287 ) — Share repurchases (2,000,000 ) 2,000,000 (44,053 ) — (44,053 ) — Noncontrolling interest capital contribution — — — — — 871 Noncontrolling interest capital distribution — — — (4,075 ) (4,075 ) — Redeemable noncontrolling interest redemption value adjustment — — (420 ) — (420 ) 420 Balance at January 30, 2016 83,833,937 56,195,000 $ 1,018,475 $ 12,818 $ 1,031,293 $ 5,252 Net earnings (loss) — — (25,178 ) 24 (25,154 ) — Foreign currency translation adjustment — — 42,631 521 43,152 406 Loss on derivative financial instruments designated as cash flow hedges, net of income tax of $2,634 — — (11,025 ) — (11,025 ) — Gain on marketable securities, net of minimal tax effect — — 1 — 1 — Actuarial valuation and prior service credit amortization and foreign currency and other adjustments on defined benefit plans, net of income tax of ($4) — — (89 ) — (89 ) — Issuance of common stock under stock compensation plans, net of tax effect 482,936 — (640 ) — (640 ) — Issuance of stock under Employee Stock Purchase Plan 9,448 (9,448 ) 150 — 150 — Share-based compensation — — 4,232 — 4,232 — Dividends — — (19,137 ) — (19,137 ) — Noncontrolling interest capital contribution — — — — — 1,876 Redeemable noncontrolling interest redemption value adjustment — — (670 ) — (670 ) 670 Balance at April 30, 2016 84,326,321 56,185,552 $ 1,008,750 $ 13,363 $ 1,022,113 $ 8,204 |
Schedule of changes in accumulated other comprehensive income (loss), net of related income taxes | The changes in accumulated other comprehensive income (loss), net of related income taxes, for the three months ended April 30, 2016 and May 2, 2015 are as follows (in thousands): Three Months Ended Apr 30, 2016 Foreign Currency Translation Adjustment Derivative Financial Instruments Designated as Cash Flow Hedges Marketable Securities Defined Benefit Plans Total Balance at January 30, 2016 $ (157,652 ) $ 7,252 $ (15 ) $ (7,639 ) $ (158,054 ) Gains (losses) arising during the period 42,631 (9,880 ) 1 (149 ) 32,603 Reclassification to net loss for (gains) losses realized — (1,145 ) — 60 (1,085 ) Net other comprehensive income (loss) 42,631 (11,025 ) 1 (89 ) 31,518 Balance at April 30, 2016 $ (115,021 ) $ (3,773 ) $ (14 ) $ (7,728 ) $ (126,536 ) Three Months Ended May 2, 2015 Foreign Currency Translation Adjustment Derivative Financial Instruments Designated as Cash Flow Hedges Marketable Securities Defined Benefit Plans Total Balance at January 31, 2015 $ (121,569 ) $ 7,157 $ (3 ) $ (12,650 ) $ (127,065 ) Losses arising during the period (339 ) (926 ) (4 ) — (1,269 ) Reclassification to net earnings for (gains) losses realized — (1,935 ) — 306 (1,629 ) Net other comprehensive income (loss) (339 ) (2,861 ) (4 ) 306 (2,898 ) Balance at May 2, 2015 $ (121,908 ) $ 4,296 $ (7 ) $ (12,344 ) $ (129,963 ) |
Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss) | Details on reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss) during the three months ended April 30, 2016 and May 2, 2015 are as follows (in thousands): Three Months Ended Location of (Gain) Loss Reclassified from Accumulated OCI into Earnings (Loss) Apr 30, 2016 May 2, 2015 Derivative financial instruments designated as cash flow hedges: Foreign exchange currency contracts $ (1,435 ) $ (1,750 ) Cost of product sales Foreign exchange currency contracts (32 ) (486 ) Other income/expense Interest rate swap 51 — Interest expense Less income tax effect 271 301 Income tax expense (benefit) (1,145 ) (1,935 ) Defined benefit plans: Actuarial loss amortization 86 513 (1) Prior service credit amortization (7 ) (58 ) (1) Less income tax effect (19 ) (149 ) Income tax expense (benefit) 60 306 Total reclassifications during the period $ (1,085 ) $ (1,629 ) __________________________________ (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic defined benefit pension cost. Refer to Note 13 for further information. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Receivables [Abstract] | |
Schedule of accounts receivable | Accounts receivable is summarized as follows (in thousands): Apr 30, 2016 Jan 30, 2016 Trade $ 188,769 $ 222,972 Royalty 13,273 16,443 Other 8,770 16,493 210,812 255,908 Less allowances 33,143 33,549 $ 177,669 $ 222,359 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consist of the following (in thousands): Apr 30, 2016 Jan 30, 2016 Raw materials $ 2,251 $ 2,043 Work in progress 116 92 Finished goods 355,824 309,569 $ 358,191 $ 311,704 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Summary of restructuring activities related primarily to severance | The following table summarizes restructuring activities related primarily to severance during the three months ended April 30, 2016 (in thousands): Total Balance at January 30, 2016 $ — Charges to operations 6,083 Cash payments (930 ) Foreign currency and other adjustments (7 ) Balance at April 30, 2016 $ 5,146 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Segment Reporting [Abstract] | |
Summary of net revenue and earnings (loss) from operations by segment | Net revenue and earnings (loss) from operations are summarized as follows for the three months ended April 30, 2016 and May 2, 2015 (in thousands): Three Months Ended Apr 30, 2016 May 2, 2015 Net revenue: Americas Retail $ 204,161 $ 214,249 Europe 135,380 137,397 Asia 54,129 64,035 Americas Wholesale 32,798 37,278 Licensing 22,347 25,865 Total net revenue $ 448,815 $ 478,824 Earnings (loss) from operations: Americas Retail $ (12,601 ) $ (7,209 ) Europe (14,085 ) (3,668 ) Asia (669 ) 4,613 Americas Wholesale 5,611 6,747 Licensing 20,415 23,025 Corporate Overhead (21,566 ) (19,155 ) Restructuring Charges (6,083 ) — Total earnings (loss) from operations $ (28,978 ) $ 4,353 |
Borrowings and Capital Lease 30
Borrowings and Capital Lease Obligations (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Debt Disclosure [Abstract] | |
Summary of borrowings and capital lease obligations | Borrowings and capital lease obligations are summarized as follows (in thousands): Apr 30, 2016 Jan 30, 2016 Mortgage debt, maturing monthly through January 2026 $ 21,299 $ — European capital lease, maturing quarterly through May 2016 3,893 4,024 Other 2,790 2,318 27,982 6,342 Less current installments 4,443 4,024 Long-term debt $ 23,539 $ 2,318 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
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 months ended April 30, 2016 and May 2, 2015 (in thousands): Three Months Ended Apr 30, 2016 May 2, 2015 Stock options $ 512 $ 481 Stock awards/units 3,678 3,087 Employee Stock Purchase Plan 42 44 Total share-based compensation expense $ 4,232 $ 3,612 |
Schedule of activity for nonvested performance-based units | The following table summarizes the activity for nonvested performance-based units during the three months ended April 30, 2016 : Number of Units Weighted Average Grant Date Fair Value Nonvested at January 30, 2016 580,000 $ 22.65 Granted 462,359 18.35 Vested (179,422 ) 28.05 Forfeited — — Nonvested at April 30, 2016 862,937 $ 19.22 |
Schedule of activity for nonvested market-based units | The following table summarizes the activity for nonvested market-based units during the three months ended April 30, 2016 : Number of Units Weighted Nonvested at January 30, 2016 183,368 $ 17.72 Granted 140,457 15.20 Vested — — Forfeited — — Nonvested at April 30, 2016 323,825 $ 16.63 |
Defined Benefit Plans (Tables)
Defined Benefit Plans (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Components of net periodic defined benefit pension cost | The components of net periodic defined benefit pension cost for the three months ended April 30, 2016 and May 2, 2015 related to the SERP are as follows (in thousands): Three Months Ended Apr 30, 2016 May 2, 2015 Interest cost $ 460 $ 496 Net amortization of unrecognized prior service credit — (58 ) Net amortization of actuarial losses 39 428 Net periodic defined benefit pension cost $ 499 $ 866 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
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 April 30, 2016 and January 30, 2016 (in thousands): Fair Value Measurements at Apr 30, 2016 Fair Value Measurements at Jan 30, 2016 Recurring Fair Value Measures Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Foreign exchange currency contracts $ — $ 117 $ — $ 117 $ — $ 9,797 $ — $ 9,797 Available-for-sale securities 18 — — 18 17 — — 17 Total $ 18 $ 117 $ — $ 135 $ 17 $ 9,797 $ — $ 9,814 Liabilities: Foreign exchange currency contracts $ — $ 9,597 $ — $ 9,597 $ — $ 366 $ — $ 366 Interest rate swaps — 81 — 81 — 37 — 37 Deferred compensation obligations — 11,112 — 11,112 — 10,155 — 10,155 Total $ — $ 20,790 $ — $ 20,790 $ — $ 10,558 $ — $ 10,558 |
Derivative Financial Instrume34
Derivative Financial Instruments (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of fair value of derivative instruments in the condensed consolidated balance sheets | The fair value of derivative instruments in the condensed consolidated balance sheets as of April 30, 2016 and January 30, 2016 is as follows (in thousands): Derivative Balance Sheet Location Fair Value at Fair Value at ASSETS: Derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange currency contracts Other current assets/ Other assets $ 99 $ 7,491 Derivatives not designated as hedging instruments: Foreign exchange currency contracts Other current assets 18 2,306 Total $ 117 $ 9,797 LIABILITIES: Derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange currency contracts Accrued expenses/ Other long-term liabilities $ 5,667 $ 47 Interest rate swap Other long-term liabilities 81 — Total derivatives designated as hedging instruments 5,748 47 Derivatives not designated as hedging instruments: Foreign exchange currency contracts Accrued expenses 3,930 319 Interest rate swap Accrued expenses — 37 Total derivatives not designated as hedging instruments 3,930 356 Total $ 9,678 $ 403 |
Summary of gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings (loss) | The following table summarizes the gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings (loss) for the three months ended April 30, 2016 and May 2, 2015 (in thousands): Loss Recognized in OCI Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings (Loss) (1) Gain (Loss) Reclassified from Accumulated OCI into Earnings (Loss) Three Months Ended Three Months Ended Apr 30, 2016 May 2, 2015 Apr 30, 2016 May 2, 2015 Derivatives designated as cash flow hedges: Foreign exchange currency contracts $ (11,412 ) $ (1,147 ) Cost of product sales $ 1,435 $ 1,750 Foreign exchange currency contracts $ (699 ) $ (148 ) Other income/expense $ 32 $ 486 Interest rate swap $ (132 ) $ — Interest expense $ (51 ) $ — __________________________________ (1) The Company recognized gains of $0.5 million resulting from the ineffective portion related to foreign exchange currency contracts in interest income during the three months ended April 30, 2016 . The ineffective portion related to foreign exchange currency contracts was immaterial during the three months ended May 2, 2015 . There was no ineffectiveness recognized related to the interest rate swap during the three months ended April 30, 2016 . |
Summary of net after-tax derivative activity recorded in accumulated other comprehensive income (loss) | The following table summarizes net after-tax derivative activity recorded in accumulated other comprehensive income (loss) (in thousands): Three Months Ended Apr 30, 2016 May 2, 2015 Beginning balance gain $ 7,252 $ 7,157 Net losses from changes in cash flow hedges (9,880 ) (926 ) Net gains reclassified to earnings (loss) (1,145 ) (1,935 ) Ending balance gain (loss) $ (3,773 ) $ 4,296 |
Summary of gains (losses) before taxes recognized on the derivative instruments not designated as hedging instruments in other income (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 months ended April 30, 2016 and May 2, 2015 (in thousands): Location of Gain (Loss) Recognized in Earnings (Loss) Gain (Loss) Recognized in Earnings (Loss) Three Months Ended Apr 30, 2016 May 2, 2015 Derivatives not designated as hedging instruments: Foreign exchange currency contracts Other income/expense $ (6,029 ) $ (701 ) Interest rate swap Other income/expense $ 38 $ 49 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Fiscal Year | |||
Number of days in fiscal year | 364 days | 364 days | |
Forecast | |||
Fiscal Year | |||
Number of days in fiscal year | 364 days |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 30, 2016 | May. 02, 2015 | |
Earnings Per Share [Abstract] | ||
Net earnings (loss) attributable to Guess, Inc. | $ (25,178) | $ 3,341 |
Less net earnings attributable to nonvested restricted stockholders | 150 | 84 |
Net earnings (loss) attributable to common stockholders | $ (25,328) | $ 3,257 |
Weighted average common shares used in basic computations | 83,514,000 | 84,965,000 |
Effect of dilutive securities: | ||
Stock options and restricted stock units (in shares) | 0 | 134,000 |
Weighted average common shares used in diluted computations | 83,514,000 | 85,099,000 |
Net earnings (loss) per common share attributable to common stockholders: | ||
Basic (in dollars per share) | $ (0.30) | $ 0.04 |
Diluted (in dollars per share) | $ (0.30) | $ 0.04 |
Antidilutive securities excluded from computation of earnings (loss) per share | ||
Antidilutive equity awards excluded from computation of diluted weighted average common shares | 3,022,961 | 2,124,253 |
Performance-based or market-based units | ||
Antidilutive securities excluded from computation of earnings (loss) per share | ||
Awards subject to performance or market conditions that were excluded from the computation of diluted weighted average common shares | 602,816 | 175,866 |
Potentially dilutive shares | ||
Antidilutive securities excluded from computation of earnings (loss) per share | ||
Antidilutive equity awards excluded from computation of diluted weighted average common shares | 249,003 |
Earnings (Loss) Per Share (De37
Earnings (Loss) Per Share (Details 2) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2016 | May. 02, 2015 | Jan. 30, 2016 | Jun. 26, 2012 | |
Earnings Per Share [Abstract] | ||||
Value of common stock authorized to be repurchased | $ 500,000,000 | |||
Value of common stock remaining to be repurchased | $ 451,800,000 | |||
Number of common stock repurchased (in shares) | 0 | 0 | ||
Shares repurchased, aggregate cost | $ 0 | $ 0 | $ 44,053,000 |
Stockholders' Equity and Rede38
Stockholders' Equity and Redeemable Noncontrolling Interests (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2016 | May. 02, 2015 | Jan. 30, 2016 | |
Stockholders' equity reconciliation | |||
Stock (in shares), beginning of the period | 83,833,937 | ||
Stockholders' equity, balance at the beginning of the period | $ 1,031,293,000 | $ 1,089,446,000 | $ 1,089,446,000 |
Net earnings (loss) | (25,154,000) | $ 3,987,000 | 84,815,000 |
Foreign currency translation adjustment | 43,152,000 | (37,744,000) | |
Gain (loss) on derivative financial instruments designated as cash flow hedges, net of income tax | (11,025,000) | 95,000 | |
Gain (loss) on marketable securities, net of income tax | 1,000 | (12,000) | |
Actuarial valuation gain (loss) and related amortization, plan amendment, curtailment, prior service credit amortization and foreign currency and other adjustments on defined benefit plans, net of income tax | (89,000) | 5,011,000 | |
Issuance of common stock under stock compensation plans, net of tax effect | (640,000) | (4,023,000) | |
Issuance of stock under Employee Stock Purchase Plan | 150,000 | 660,000 | |
Share-based compensation | 4,232,000 | 18,880,000 | |
Dividends | $ (19,137,000) | (77,287,000) | |
Share repurchases (in shares) | 0 | 0 | |
Share repurchases | $ 0 | $ 0 | (44,053,000) |
Noncontrolling interest capital contribution | 0 | 0 | |
Noncontrolling interest capital distribution | (4,075,000) | ||
Redeemable noncontrolling interest redemption value adjustment | $ (670,000) | $ (420,000) | |
Stock (in shares), end of the period | 84,326,321 | 83,833,937 | |
Stockholders' equity, balance at the end of the period | $ 1,022,113,000 | $ 1,031,293,000 | |
Comprehensive income (loss), income tax effect | |||
Gain (loss) on derivative financial instruments designated as cash flow hedges, tax effect | 2,634,000 | (559,000) | |
Gain (loss) on marketable securities, tax effect | 7,000 | ||
Actuarial valuation gain (loss) and related amortization, plan amendment, curtailment, prior service credit amortization and foreign currency and other adjustments on defined benefit plans, tax effect | $ (4,000) | $ (2,972,000) | |
Common Stock | |||
Stockholders' equity reconciliation | |||
Stock (in shares), beginning of the period | 83,833,937 | 85,323,154 | 85,323,154 |
Issuance of common stock under stock compensation plans (in shares) | 482,936 | 469,937 | |
Issuance of stock under Employee Stock Purchase Plan (in shares) | 9,448 | 40,846 | |
Share repurchases (in shares) | (2,000,000) | ||
Stock (in shares), end of the period | 84,326,321 | 83,833,937 | |
Treasury Stock | |||
Stockholders' equity reconciliation | |||
Stock (in shares), beginning of the period | 56,195,000 | 54,235,846 | 54,235,846 |
Issuance of stock under Employee Stock Purchase Plan (in shares) | (9,448) | (40,846) | |
Share repurchases (in shares) | 2,000,000 | ||
Stock (in shares), end of the period | 56,185,552 | 56,195,000 | |
Guess, Inc. Stockholders’ Equity | |||
Stockholders' equity reconciliation | |||
Stockholders' equity, balance at the beginning of the period | $ 1,018,475,000 | $ 1,073,856,000 | $ 1,073,856,000 |
Net earnings (loss) | (25,178,000) | 81,851,000 | |
Foreign currency translation adjustment | 42,631,000 | (36,083,000) | |
Gain (loss) on derivative financial instruments designated as cash flow hedges, net of income tax | (11,025,000) | 95,000 | |
Gain (loss) on marketable securities, net of income tax | 1,000 | (12,000) | |
Actuarial valuation gain (loss) and related amortization, plan amendment, curtailment, prior service credit amortization and foreign currency and other adjustments on defined benefit plans, net of income tax | (89,000) | 5,011,000 | |
Issuance of common stock under stock compensation plans, net of tax effect | (640,000) | (4,023,000) | |
Issuance of stock under Employee Stock Purchase Plan | 150,000 | 660,000 | |
Share-based compensation | 4,232,000 | 18,880,000 | |
Dividends | (19,137,000) | (77,287,000) | |
Share repurchases | (44,053,000) | ||
Noncontrolling interest capital contribution | 0 | 0 | |
Noncontrolling interest capital distribution | 0 | ||
Redeemable noncontrolling interest redemption value adjustment | (670,000) | (420,000) | |
Stockholders' equity, balance at the end of the period | 1,008,750,000 | 1,018,475,000 | |
Nonredeemable Noncontrolling Interests | |||
Stockholders' equity reconciliation | |||
Stockholders' equity, balance at the beginning of the period | 12,818,000 | $ 15,590,000 | 15,590,000 |
Net earnings (loss) | 24,000 | 2,964,000 | |
Foreign currency translation adjustment | 521,000 | (1,661,000) | |
Gain (loss) on derivative financial instruments designated as cash flow hedges, net of income tax | 0 | 0 | |
Gain (loss) on marketable securities, net of income tax | 0 | 0 | |
Actuarial valuation gain (loss) and related amortization, plan amendment, curtailment, prior service credit amortization and foreign currency and other adjustments on defined benefit plans, net of income tax | 0 | 0 | |
Issuance of common stock under stock compensation plans, net of tax effect | 0 | 0 | |
Issuance of stock under Employee Stock Purchase Plan | 0 | 0 | |
Share-based compensation | 0 | 0 | |
Dividends | 0 | 0 | |
Share repurchases | 0 | ||
Noncontrolling interest capital contribution | 0 | 0 | |
Noncontrolling interest capital distribution | (4,075,000) | ||
Redeemable noncontrolling interest redemption value adjustment | 0 | 0 | |
Stockholders' equity, balance at the end of the period | $ 13,363,000 | $ 12,818,000 |
Stockholders' Equity and Rede39
Stockholders' Equity and Redeemable Noncontrolling Interests (Details 2) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
May. 31, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Apr. 30, 2016 | |
Redeemable noncontrolling interests reconciliation | ||||
Redeemable noncontrolling interest, carrying value at the beginning of the period | $ 8,204 | $ 5,252 | $ 4,437 | |
Foreign currency translation adjustment | 406 | (476) | ||
Redeemable noncontrolling interest capital contribution | 1,876 | 871 | ||
Redeemable noncontrolling interest redemption value adjustment | 670 | 420 | ||
Redeemable noncontrolling interest, carrying value at the end of the period | 8,204 | 5,252 | ||
Redeemable noncontrolling interests put arrangements | ||||
Redeemable noncontrolling interests | 8,204 | 5,252 | 4,437 | $ 8,204 |
Guess Sud | ||||
Redeemable noncontrolling interests reconciliation | ||||
Redeemable noncontrolling interest, carrying value at the beginning of the period | 4,600 | 3,700 | ||
Redeemable noncontrolling interest, carrying value at the end of the period | $ 4,600 | 3,700 | ||
Redeemable noncontrolling interests put arrangements | ||||
Total outstanding equity interest in subsidiary covered by put arrangement (as a percent) | 40.00% | |||
Initial date put option can be exercised by noncontrolling interest holders | Jan. 30, 2012 | |||
Redeemable noncontrolling interests | $ 4,600 | $ 3,700 | 3,700 | $ 4,600 |
Guess Sud | Subsequent Events | ||||
Redeemable noncontrolling interests put arrangements | ||||
Remaining interest acquired by the Company from the noncontrolling interest holder (as a percent) | 40.00% | |||
Guess Brazil | ||||
Redeemable noncontrolling interests reconciliation | ||||
Redeemable noncontrolling interest, carrying value at the beginning of the period | $ 1,200 | 700 | ||
Redeemable noncontrolling interest, carrying value at the end of the period | 1,200 | 700 | ||
Redeemable noncontrolling interests put arrangements | ||||
Total outstanding equity interest in subsidiary covered by put arrangement (as a percent) | 40.00% | |||
Redeemable noncontrolling interests | 1,200 | $ 700 | 700 | $ 1,200 |
Initial period put option can be exercised by noncontrolling interest holder after commencement of agreement, subject to certain time restrictions (by year) | 6 years | |||
Period put arrangement can be exercised by noncontrolling interest holder after initial and subsequent exercise periods, subject to certain time restrictions (by year) | 3 years | |||
Total cash contributions in the joint venture made by the Company and the noncontrolling interest holder | $ 1,000 | |||
Payments made by the Company related to its controlling interest in joint venture | 600 | |||
Guess CIS | ||||
Redeemable noncontrolling interests reconciliation | ||||
Redeemable noncontrolling interest, carrying value at the beginning of the period | 2,400 | 900 | ||
Redeemable noncontrolling interest, carrying value at the end of the period | 2,400 | 900 | ||
Redeemable noncontrolling interests put arrangements | ||||
Redeemable noncontrolling interests | $ 2,400 | $ 900 | 900 | $ 2,400 |
Initial period put option can be exercised by noncontrolling interest holder after commencement of agreement, subject to certain time restrictions (by year) | 5 years | |||
Total cash contributions in the joint venture made by the Company and the noncontrolling interest holder | $ 5,000 | |||
Payments made by the Company related to its controlling interest in joint venture | $ 3,500 | $ 2,000 | ||
Controlling interest in joint venture held by the Company | 70.00% | |||
Last date put option can be exercised by noncontrolling interest holder | Dec. 31, 2025 |
Stockholders' Equity and Rede40
Stockholders' Equity and Redeemable Noncontrolling Interests (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2016 | May. 02, 2015 | |
Accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | $ (158,054) | $ (127,065) |
Gains (losses) arising during the period | 32,603 | (1,269) |
Reclassifications to net earnings (loss) for (gains) losses realized | (1,085) | (1,629) |
Net other comprehensive income (loss) | 31,518 | (2,898) |
Ending balance | (126,536) | (129,963) |
Foreign Currency Translation Adjustment | ||
Accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | (157,652) | (121,569) |
Gains (losses) arising during the period | 42,631 | (339) |
Reclassifications to net earnings (loss) for (gains) losses realized | 0 | 0 |
Net other comprehensive income (loss) | 42,631 | (339) |
Ending balance | (115,021) | (121,908) |
Derivative Financial Instruments Designated as Cash Flow Hedges | ||
Accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | 7,252 | 7,157 |
Gains (losses) arising during the period | (9,880) | (926) |
Reclassifications to net earnings (loss) for (gains) losses realized | (1,145) | (1,935) |
Net other comprehensive income (loss) | (11,025) | (2,861) |
Ending balance | (3,773) | 4,296 |
Marketable Securities | ||
Accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | (15) | (3) |
Gains (losses) arising during the period | 1 | (4) |
Reclassifications to net earnings (loss) for (gains) losses realized | 0 | 0 |
Net other comprehensive income (loss) | 1 | (4) |
Ending balance | (14) | (7) |
Defined Benefit Plans | ||
Accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | (7,639) | (12,650) |
Gains (losses) arising during the period | (149) | 0 |
Reclassifications to net earnings (loss) for (gains) losses realized | 60 | 306 |
Net other comprehensive income (loss) | (89) | 306 |
Ending balance | $ (7,728) | $ (12,344) |
Stockholders' Equity and Rede41
Stockholders' Equity and Redeemable Noncontrolling Interests (Details 4) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2016 | May. 02, 2015 | ||
Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss) | |||
Cost of product sales | $ 306,056 | $ 313,339 | |
Other income/expense | 1,098 | (2,626) | |
Interest expense | 520 | 435 | |
Income tax expense (benefit) | (4,791) | 2,829 | |
Net earnings (loss) attributable to Guess, Inc. | 25,178 | (3,341) | |
Reclassifications to net earnings (loss) for (gains) losses realized | (1,085) | (1,629) | |
Reclassifications out of accumulated other comprehensive income (loss) | |||
Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss) | |||
Net earnings (loss) attributable to Guess, Inc. | (1,085) | (1,629) | |
Derivative Financial Instruments Designated as Cash Flow Hedges | |||
Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss) | |||
Reclassifications to net earnings (loss) for (gains) losses realized | (1,145) | (1,935) | |
Derivative Financial Instruments Designated as Cash Flow Hedges | Reclassifications out of accumulated other comprehensive income (loss) | |||
Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss) | |||
Cost of product sales | (1,435) | (1,750) | |
Other income/expense | (32) | (486) | |
Interest expense | 51 | 0 | |
Income tax expense (benefit) | 271 | 301 | |
Net earnings (loss) attributable to Guess, Inc. | (1,145) | (1,935) | |
Defined Benefit Plans | |||
Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss) | |||
Income tax expense (benefit) | (19) | (149) | |
Reclassifications to net earnings (loss) for (gains) losses realized | 60 | 306 | |
Actuarial Loss Amortization | |||
Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss) | |||
Reclassifications out of AOCI related to defined benefit plans | [1] | 86 | 513 |
Prior Service Credit Amortization | |||
Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss) | |||
Reclassifications out of AOCI related to defined benefit plans | [1] | $ (7) | $ (58) |
[1] | These accumulated other comprehensive income (loss) components are included in the computation of net periodic defined benefit pension cost. Refer to Note 13 for further information. |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 30, 2016 |
Accounts receivable | ||
Accounts receivable, gross | $ 210,812 | $ 255,908 |
Less allowances | 33,143 | 33,549 |
Accounts receivable, net | 177,669 | 222,359 |
Trade receivables | ||
Accounts receivable | ||
Accounts receivable, gross | 188,769 | 222,972 |
Royalty receivables | ||
Accounts receivable | ||
Accounts receivable, gross | 13,273 | 16,443 |
Other receivables | ||
Accounts receivable | ||
Accounts receivable, gross | $ 8,770 | $ 16,493 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 30, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,251 | $ 2,043 |
Work in progress | 116 | 92 |
Finished goods | 355,824 | 309,569 |
Inventories | 358,191 | 311,704 |
Allowance to write down inventories to the lower of cost or market | $ 18,900 | $ 15,900 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2016 | May. 02, 2015 | |
Restructuring reserve activity | ||
Charges to operations | $ 6,083 | $ 0 |
Severance | ||
Restructuring reserve activity | ||
Beginning balance | 0 | |
Charges to operations | 6,083 | |
Cash payments | (930) | |
Foreign currency and other adjustments | (7) | |
Ending balance | 5,146 | |
Severance | Minimum | ||
Restructuring activity | ||
Anticipated cash restructuring charges remaining under the plan | 1,000 | |
Severance | Maximum | ||
Restructuring activity | ||
Anticipated cash restructuring charges remaining under the plan | 2,000 | |
Accrued expenses | ||
Restructuring activity | ||
Restructuring reserve included in accrued expenses | 5,146 | |
Europe | ||
Restructuring activity | ||
Estimated exit tax charge | $ 1,900 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2016 | May. 02, 2015 | Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate (as a percent) | 16.00% | 41.50% | |
Aggregate accruals for uncertain tax positions, including penalties and interest | $ 14.9 | $ 13.9 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |
Apr. 30, 2016USD ($)segment | May. 02, 2015USD ($) | |
Segment information of net revenue and earnings (loss) from operations | ||
Number of reportable segments | segment | 5 | |
Number of operating segments | segment | 5 | |
Net revenue | $ 448,815 | $ 478,824 |
Licensing | 22,347 | 25,865 |
Restructuring charges | (6,083) | 0 |
Earnings (loss) from operations | (28,978) | 4,353 |
Corporate Overhead | ||
Segment information of net revenue and earnings (loss) from operations | ||
Earnings (loss) from operations | (21,566) | (19,155) |
Restructuring charges | ||
Segment information of net revenue and earnings (loss) from operations | ||
Restructuring charges | (6,083) | 0 |
Americas Retail | ||
Segment information of net revenue and earnings (loss) from operations | ||
Net revenue | 204,161 | 214,249 |
Earnings (loss) from operations | (12,601) | (7,209) |
Europe | ||
Segment information of net revenue and earnings (loss) from operations | ||
Net revenue | 135,380 | 137,397 |
Earnings (loss) from operations | (14,085) | (3,668) |
Asia | ||
Segment information of net revenue and earnings (loss) from operations | ||
Net revenue | 54,129 | 64,035 |
Earnings (loss) from operations | (669) | 4,613 |
Americas Wholesale | ||
Segment information of net revenue and earnings (loss) from operations | ||
Net revenue | 32,798 | 37,278 |
Earnings (loss) from operations | 5,611 | 6,747 |
Licensing | ||
Segment information of net revenue and earnings (loss) from operations | ||
Licensing | 22,347 | 25,865 |
Earnings (loss) from operations | $ 20,415 | $ 23,025 |
Borrowings and Capital Lease 47
Borrowings and Capital Lease Obligations (Details) | Feb. 16, 2016USD ($) | Feb. 01, 2016 | Jun. 23, 2015USD ($) | Apr. 30, 2016USD ($)facility | Jan. 30, 2016USD ($) |
Borrowings and capital lease obligations | |||||
Mortgage debt, maturing monthly through January 2026 | $ 21,299,000 | $ 0 | |||
European capital lease, maturing quarterly through May 2016 | 3,893,000 | 4,024,000 | |||
Other debt | 2,790,000 | 2,318,000 | |||
Borrowings and capital lease obligations, total | 27,982,000 | 6,342,000 | |||
Less current installments | 4,443,000 | 4,024,000 | |||
Long-term debt | 23,539,000 | 2,318,000 | |||
Mortgage Debt | |||||
Mortgage debt, maturing monthly through January 2026 | $ 21,299,000 | $ 0 | |||
Interest rate swap | Derivatives designated as hedging instruments | Cash flow hedges | |||||
Borrowings and capital lease obligations | |||||
Fixed rate of interest rate swap | 3.06% | ||||
Interest rate swap maturity date | Jan. 31, 2026 | ||||
Europe | Foreign line of credit | |||||
Credit Facilities | |||||
Current borrowing capacity | $ 65,600,000 | ||||
Credit Facility, outstanding amount | $ 0 | ||||
Interest rate, low end of the range (as a percent) | 0.40% | ||||
Interest rate, high end of the range (as a percent) | 6.80% | ||||
Number of credit facilities subject to minimum net equity requirement | facility | 1 | ||||
Maximum borrowing capacity of the credit facility which is subject to a minimum net equity requirement | $ 40,100,000 | ||||
Europe | Documentary letters of credit | Foreign line of credit | |||||
Credit Facilities | |||||
Letters of credit outstanding | 800,000 | ||||
European capital lease, maturing quarterly through May 2016 | Italy | |||||
Borrowings and capital lease obligations | |||||
European capital lease, maturing quarterly through May 2016 | $ 3,893,000 | ||||
Capital Lease | |||||
Lease expiration date | May 1, 2016 | ||||
European capital lease, maturing quarterly through May 2016 | Italy | Interest rate swap | Derivatives not designated as hedging instruments | |||||
Borrowings and capital lease obligations | |||||
Fixed rate of interest rate swap | 3.55% | ||||
Interest rate swap maturity date | Feb. 1, 2016 | ||||
Credit Facility | |||||
Credit Facilities | |||||
Credit Facility, outstanding amount | $ 0 | ||||
Credit Facility | Revolving Credit Facility | |||||
Borrowings and capital lease obligations | |||||
Debt maturity period (in years) | 5 years | ||||
Credit Facilities | |||||
Maximum borrowing capacity | $ 150,000,000 | 150,000,000 | |||
Current borrowing capacity | $ 148,000,000 | ||||
Priority level for Credit Facility | secured by a first priority lien on substantially all of the assets of the Company and such domestic and Canadian subsidiaries | ||||
Credit Facility | Accordion feature | |||||
Credit Facilities | |||||
Maximum borrowing capacity | 150,000,000 | $ 150,000,000 | |||
Credit Facility | U.S. line of credit | Base rate | Minimum | |||||
Borrowings and capital lease obligations | |||||
Interest rate margin (as a percent) | 0.25% | ||||
Credit Facility | U.S. line of credit | Base rate | Maximum | |||||
Borrowings and capital lease obligations | |||||
Interest rate margin (as a percent) | 0.75% | ||||
Credit Facility | U.S. line of credit | LIBOR | |||||
Credit Facilities | |||||
Interest rate margin added to respective base rate | 1.00% | ||||
Credit Facility | U.S. line of credit | LIBOR | Minimum | |||||
Borrowings and capital lease obligations | |||||
Interest rate margin (as a percent) | 1.25% | ||||
Credit Facility | U.S. line of credit | LIBOR | Maximum | |||||
Borrowings and capital lease obligations | |||||
Interest rate margin (as a percent) | 1.75% | ||||
Credit Facility | U.S. line of credit | Federal funds rate | |||||
Credit Facilities | |||||
Interest rate margin added to respective base rate | 0.50% | ||||
Credit Facility | Standby letters of credit | |||||
Credit Facilities | |||||
Letters of credit outstanding | $ 1,700,000 | ||||
Credit Facility | Documentary letters of credit | |||||
Credit Facilities | |||||
Letters of credit outstanding | 400,000 | ||||
Credit Facility | Canada | Foreign line of credit | |||||
Credit Facilities | |||||
Maximum borrowing capacity | $ 50,000,000 | $ 50,000,000 | |||
Credit Facility | Canada | Foreign line of credit | Prime rate | Minimum | |||||
Borrowings and capital lease obligations | |||||
Interest rate margin (as a percent) | 0.25% | ||||
Credit Facility | Canada | Foreign line of credit | Prime rate | Maximum | |||||
Borrowings and capital lease obligations | |||||
Interest rate margin (as a percent) | 0.75% | ||||
Credit Facility | Canada | Foreign line of credit | Canadian BA rate | |||||
Credit Facilities | |||||
Interest rate margin added to respective base rate | 1.00% | ||||
Credit Facility | Canada | Foreign line of credit | Canadian BA rate | Minimum | |||||
Borrowings and capital lease obligations | |||||
Interest rate margin (as a percent) | 1.25% | ||||
Credit Facility | Canada | Foreign line of credit | Canadian BA rate | Maximum | |||||
Borrowings and capital lease obligations | |||||
Interest rate margin (as a percent) | 1.75% | ||||
Credit Facility | Canada | Foreign line of credit | Bank of Canada overnight rate | |||||
Credit Facilities | |||||
Interest rate margin added to respective base rate | 0.50% | ||||
Mortgage debt | U.S. distribution center | |||||
Borrowings and capital lease obligations | |||||
Mortgage debt, maturing monthly through January 2026 | $ 21,500,000 | $ 21,299,000 | |||
Debt maturity period (in years) | 10 years | ||||
Mortgage Debt | |||||
Debt maturity date | Jan. 31, 2026 | ||||
Mortgage debt, maturing monthly through January 2026 | $ 21,500,000 | $ 21,299,000 | |||
Security description for mortgage debt | secured by the Company’s U.S. distribution center based in Louisville, Kentucky | ||||
Debt amortization period (in years) | 25 years | ||||
Debt issuance costs | $ 100,000 | ||||
Mortgage debt | LIBOR | U.S. distribution center | |||||
Borrowings and capital lease obligations | |||||
Interest rate margin (as a percent) | 1.50% | ||||
Mortgage debt | Interest rate swap | U.S. distribution center | |||||
Mortgage Debt | |||||
Fair value of cash flow hedge interest rate swap | $ 81,000 | ||||
Mortgage debt | Interest rate swap | Derivatives designated as hedging instruments | Cash flow hedges | U.S. distribution center | |||||
Borrowings and capital lease obligations | |||||
Fixed rate of interest rate swap | 3.06% | 3.06% | |||
Interest rate swap maturity date | Jan. 31, 2026 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 29, 2016 | Mar. 30, 2016 | Jul. 07, 2015 | Apr. 02, 2015 | Apr. 30, 2016 | May. 02, 2015 |
Disclosure of share-based compensation information under stock plans | ||||||
Share-based compensation expense | $ 4,232 | $ 3,612 | ||||
Share-Based Compensation, Additional Disclosures | ||||||
Unrecognized compensation cost, adjusted for estimated forfeitures, related to nonvested stock options | $ 4,900 | |||||
Weighted average fair values of stock options granted during the period (in dollars per share) | $ 3.56 | $ 3.62 | ||||
Granted (in shares) | 616,450 | 577,700 | ||||
Chief Executive Officer | ||||||
Share-Based Compensation, Additional Disclosures | ||||||
Granted (in shares) | 600,000 | |||||
Employee Stock Purchase Plan | ||||||
Disclosure of share-based compensation information under stock plans | ||||||
Share-based compensation expense | $ 42 | $ 44 | ||||
Stock option | ||||||
Disclosure of share-based compensation information under stock plans | ||||||
Share-based compensation expense | $ 512 | 481 | ||||
Share-Based Compensation, Additional Disclosures | ||||||
Weighted average period for recognition of unrecognized compensation cost (in years/months/days) | 1 year 11 months 11 days | |||||
Nonvested stock awards/units | ||||||
Disclosure of share-based compensation information under stock plans | ||||||
Share-based compensation expense | $ 3,678 | $ 3,087 | ||||
Share-Based Compensation, Additional Disclosures | ||||||
Unrecognized compensation cost, adjusted for estimated forfeitures, related to nonvested stock awards/units | $ 31,600 | |||||
Weighted average period for recognition of unrecognized compensation cost (in years/months/days) | 1 year 11 months 11 days | |||||
Number of Units | ||||||
Granted (in shares) | 442,000 | 401,700 | ||||
Nonvested stock awards/units | Chief Executive Officer | ||||||
Number of Units | ||||||
Granted (in shares) | 250,000 | |||||
Contingently returnable restricted stock units | Chief Executive Officer | ||||||
Number of Units | ||||||
Granted (in shares) | 150,000 | |||||
Performance-based units | ||||||
Number of Units | ||||||
Nonvested at the beginning of the period (in shares) | 580,000 | |||||
Granted (in shares) | 462,359 | |||||
Vested (in shares) | (179,422) | |||||
Forfeited (in shares) | 0 | |||||
Nonvested at the end of the period (in shares) | 862,937 | |||||
Weighted Average Grant Date Fair Value | ||||||
Nonvested at the beginning of the period (in dollars per share) | $ 22.65 | |||||
Granted (in dollars per share) | 18.35 | |||||
Vested (in dollars per share) | 28.05 | |||||
Forfeited (in dollars per share) | 0 | |||||
Nonvested at the end of the period (in dollars per share) | $ 19.22 | |||||
Performance units | ||||||
Share-Based Compensation, Additional Disclosures | ||||||
Period which award is subject to a performance condition (in years) | 1 year | |||||
Performance units | Vesting, Tranche One | ||||||
Share-Based Compensation, Additional Disclosures | ||||||
Vesting period (in years) | 1 year | |||||
Performance units | Vesting, annual vesting periods after initial vesting period | Minimum | ||||||
Share-Based Compensation, Additional Disclosures | ||||||
Vesting period (in years) | 2 years | |||||
Performance units | Vesting, annual vesting periods after initial vesting period | Maximum | ||||||
Share-Based Compensation, Additional Disclosures | ||||||
Vesting period (in years) | 3 years | |||||
Target performance units | ||||||
Share-Based Compensation, Additional Disclosures | ||||||
Vesting period (in years) | 3 years | |||||
Target performance units | Minimum | ||||||
Share-Based Compensation, Additional Disclosures | ||||||
Period which award is subject to a performance condition (in years) | 1 year | |||||
Vesting rights based on the satisfaction of certain performance or market-based criteria (as a percentage) | 0.00% | |||||
Target performance units | Maximum | ||||||
Share-Based Compensation, Additional Disclosures | ||||||
Period which award is subject to a performance condition (in years) | 3 years | |||||
Vesting rights based on the satisfaction of certain performance or market-based criteria (as a percentage) | 200.00% | |||||
Market-based units | ||||||
Share-Based Compensation, Additional Disclosures | ||||||
Vesting period (in years) | 3 years | |||||
Period which award is subject to a market condition (in years) | 3 years | |||||
Number of Units | ||||||
Nonvested at the beginning of the period (in shares) | 183,368 | |||||
Granted (in shares) | 140,457 | |||||
Vested (in shares) | 0 | |||||
Forfeited (in shares) | 0 | |||||
Nonvested at the end of the period (in shares) | 323,825 | |||||
Weighted Average Grant Date Fair Value | ||||||
Nonvested at the beginning of the period (in dollars per share) | $ 17.72 | |||||
Granted (in dollars per share) | 15.20 | |||||
Vested (in dollars per share) | 0 | |||||
Forfeited (in dollars per share) | 0 | |||||
Nonvested at the end of the period (in dollars per share) | $ 16.63 | |||||
Market-based units | Minimum | ||||||
Share-Based Compensation, Additional Disclosures | ||||||
Vesting rights based on the satisfaction of certain performance or market-based criteria (as a percentage) | 0.00% | |||||
Market-based units | Maximum | ||||||
Share-Based Compensation, Additional Disclosures | ||||||
Vesting rights based on the satisfaction of certain performance or market-based criteria (as a percentage) | 150.00% | |||||
Performance-based or market-based units | ||||||
Number of Units | ||||||
Granted (in shares) | 602,816 |
Related Party Transactions (Det
Related Party Transactions (Details) ft² in Thousands | 3 Months Ended | ||
Apr. 30, 2016USD ($)ft²lease | Jan. 30, 2016USD ($)ft² | May. 02, 2015USD ($) | |
Marciano Trusts | |||
Related Party Transactions | |||
Number of leases under related party lease agreements | lease | 4 | ||
Marciano Trusts | Parking lot adjacent to corporate headquarters | |||
Related Party Transactions | |||
Area of leased property (in square feet) | ft² | 140 | 140 | |
Gross cash proceeds received from sales-leaseback transaction | $ 7,500,000 | ||
Sale price of sales-leaseback transaction | $ 7,500,000 | ||
Marciano Trusts | Parking lot adjacent to corporate headquarters | Other income/expense | |||
Related Party Transactions | |||
Net gains recognized in other income from sales-leaseback transaction | $ 3,400,000 | ||
Marciano Trusts | Related party leases | |||
Related Party Transactions | |||
Expenses under related party arrangement | $ 1,200,000 | $ 1,400,000 | |
Marciano Trusts | Minimum | |||
Related Party Transactions | |||
Lease expiration date (by year) | 2,017 | ||
Marciano Trusts | Maximum | |||
Related Party Transactions | |||
Lease expiration date (by year) | 2,020 | ||
MPM Financial LLC | Payments for aircraft charter | |||
Related Party Transactions | |||
Payments under related party agreement | $ 300,000 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended |
Apr. 30, 2016 | |
Property leases | Maximum | |
Leases | |
Lease expiration date | Sep. 30, 2031 |
Retail store leases | Minimum | |
Leases | |
Percentage of annual sales volume used for incremental rent on certain retail location leases | 2.00% |
Retail store leases | Maximum | |
Leases | |
Percentage of annual sales volume used for incremental rent on certain retail location leases | 12.00% |
Retail concession leases | Average | |
Leases | |
Percentage of annual sales volume used for incremental rent on certain retail location leases | 34.00% |
Equipment operating leases | Maximum | |
Leases | |
Lease expiration date | Mar. 31, 2021 |
Commitments and Contingencies51
Commitments and Contingencies (Details 2) $ in Thousands, € in Millions | Nov. 08, 2013USD ($) | Jul. 19, 2012USD ($) | Feb. 29, 2016USD ($)Plaintiff | May. 31, 2015EUR (€) | May. 31, 2015USD ($) | Apr. 30, 2016EUR (€)subsidiary | Apr. 30, 2016USD ($)subsidiary | Apr. 30, 2016USD ($) | Jan. 30, 2015trademark | May. 02, 2013trademark |
Italy | Europe | Customs tax audit and appeals | ||||||||||
Loss contingency | ||||||||||
Number of subsidiaries under audit by the Italian Customs Agency | subsidiary | 1 | 1 | ||||||||
Customs tax assessments including potential penalties and interest | € 9.8 | $ 11,200 | ||||||||
Italy | Minimum | Europe | Customs tax audit and appeals | ||||||||||
Loss contingency | ||||||||||
Period under audit by the Italian Customs Agency | Jul. 1, 2010 | Jul. 1, 2010 | ||||||||
Italy | Maximum | Europe | Customs tax audit and appeals | ||||||||||
Loss contingency | ||||||||||
Period under audit by the Italian Customs Agency | Dec. 31, 2012 | Dec. 31, 2012 | ||||||||
Italy | First set of appeals | Europe | Customs tax audit and appeals | ||||||||||
Loss contingency | ||||||||||
Canceled customs tax assessments | € 1.7 | $ 1,900 | ||||||||
Italy | First set of appeals | Minimum | Europe | Customs tax audit and appeals | ||||||||||
Loss contingency | ||||||||||
Period covering canceled assessments | Jul. 1, 2010 | Jul. 1, 2010 | ||||||||
Italy | First set of appeals | Maximum | Europe | Customs tax audit and appeals | ||||||||||
Loss contingency | ||||||||||
Period covering canceled assessments | Sep. 30, 2010 | Sep. 30, 2010 | ||||||||
Italy | Second, third and fourth set of appeals | Minimum | Europe | Customs tax audit and appeals | ||||||||||
Loss contingency | ||||||||||
Period covering canceled assessments | Oct. 1, 2010 | Oct. 1, 2010 | ||||||||
Italy | Second, third and fourth set of appeals | Maximum | Europe | Customs tax audit and appeals | ||||||||||
Loss contingency | ||||||||||
Period covering canceled assessments | Jun. 30, 2011 | Jun. 30, 2011 | ||||||||
Italy | Portion of the seventh set of appeals | Minimum | Europe | Customs tax audit and appeals | ||||||||||
Loss contingency | ||||||||||
Period covering canceled assessments | Aug. 1, 2012 | Aug. 1, 2012 | ||||||||
Italy | Portion of the seventh set of appeals | Maximum | Europe | Customs tax audit and appeals | ||||||||||
Loss contingency | ||||||||||
Period covering canceled assessments | Dec. 31, 2012 | Dec. 31, 2012 | ||||||||
Italy | Second, third, fourth and a portion of the seventh set of appeals | Europe | Customs tax audit and appeals | ||||||||||
Loss contingency | ||||||||||
Canceled customs tax assessments | € 3.3 | $ 3,800 | ||||||||
Judicial ruling | U.S. | Gucci America, Inc. | ||||||||||
Loss contingency | ||||||||||
Damages sought in litigation case | $ 26,000 | |||||||||
Accounting profits sought by plaintiff as compensation | 99,000 | |||||||||
Monetary damages awarded by court | 2,300 | |||||||||
Monetary damages awarded by court to be paid by the Company's licensees | $ 2,300 | |||||||||
Judicial ruling | U.S. | Isaguirre | ||||||||||
Loss contingency | ||||||||||
Number of plaintiffs | Plaintiff | 2 | |||||||||
Settlement amount | $ 5,250 | |||||||||
Pending litigation | Italy | Gucci America, Inc. | ||||||||||
Loss contingency | ||||||||||
Number of Italian trademark registrations to be cancelled by plaintiff | trademark | 3 | |||||||||
Number of European Community trademark registrations to be cancelled by plaintiff | trademark | 4 | |||||||||
Pending litigation | China | Gucci America, Inc. | ||||||||||
Loss contingency | ||||||||||
Monetary damages awarded by court | $ 80 | |||||||||
Pending litigation | France | Gucci America, Inc. | ||||||||||
Loss contingency | ||||||||||
Number of European Community trademark registrations to be cancelled by plaintiff | trademark | 2 | |||||||||
Number of international trademark registrations to be cancelled by plaintiff | trademark | 1 |
Defined Benefit Plans (Details)
Defined Benefit Plans (Details) $ in Thousands, SFr in Millions | 3 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2016USD ($)participant | Apr. 30, 2016CHF (SFr) | Aug. 01, 2015USD ($) | May. 02, 2015USD ($) | May. 02, 2015CHF (SFr) | Jan. 30, 2016USD ($) | Apr. 30, 2016CHF (SFr)participant | Jan. 30, 2016CHF (SFr) | |
SERP | ||||||||
Components of net periodic defined benefit pension cost | ||||||||
Interest cost | $ 460 | $ 496 | ||||||
Net amortization of unrecognized prior service credit | 0 | (58) | ||||||
Net amortization of actuarial losses | 39 | 428 | ||||||
Net periodic defined benefit pension cost | $ 499 | 866 | ||||||
Number of employees considered actively participating under the terms of the SERP | participant | 0 | 0 | ||||||
SERP benefit payments | $ 400 | 400 | ||||||
SERP | Executive Chairman of the Board and Chief Creative Officer | ||||||||
Components of net periodic defined benefit pension cost | ||||||||
Actuarial gain | $ 11,400 | $ 11,400 | ||||||
Curtailment gain | $ 1,700 | 1,700 | ||||||
Swiss Pension Plan | Switzerland | ||||||||
Components of net periodic defined benefit pension cost | ||||||||
Net periodic defined benefit pension cost | 400 | SFr 0.4 | 500 | SFr 0.4 | ||||
Projected benefit obligation | 16,500 | 15,200 | SFr 15.8 | SFr 15.6 | ||||
Plan assets at fair value | 13,800 | 12,700 | 13.2 | 13 | ||||
Other income/expense | SERP | ||||||||
Components of net periodic defined benefit pension cost | ||||||||
Gains as a result of changes in value of the insurance policy investments, included in other income | 3,200 | 2,000 | ||||||
Realized gain resulting from payout on insurance policy investments | 100 | $ 700 | ||||||
Other assets | SERP | ||||||||
Components of net periodic defined benefit pension cost | ||||||||
Cash surrender values of the insurance policies held in a rabbi trust | 55,600 | 52,500 | ||||||
Accrued expenses and other long-term liabilities | SERP | ||||||||
Components of net periodic defined benefit pension cost | ||||||||
Projected benefit obligation | 53,500 | 53,400 | ||||||
Other long-term liabilities | Swiss Pension Plan | Switzerland | ||||||||
Components of net periodic defined benefit pension cost | ||||||||
Net liability | $ 2,700 | $ 2,500 | SFr 2.6 | SFr 2.6 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Apr. 30, 2016 | Jan. 30, 2016 | |
Transfers of financial instruments between the three levels of fair value hierarchy | ||
Value of transfers between levels | $ 0 | $ 0 |
Assets and liabilities measured at fair value on a recurring basis | ||
Assets: | ||
Foreign exchange currency contracts, Assets | 117,000 | 9,797,000 |
Available-for-sale securities | 18,000 | 17,000 |
Total Assets | 135,000 | 9,814,000 |
Liabilities: | ||
Foreign exchange currency contracts, Liabilities | 9,597,000 | 366,000 |
Interest rate swaps | 81,000 | 37,000 |
Deferred compensation obligations | 11,112,000 | 10,155,000 |
Total Liabilities | 20,790,000 | 10,558,000 |
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 | 18,000 | 17,000 |
Total Assets | 18,000 | 17,000 |
Liabilities: | ||
Foreign exchange currency contracts, Liabilities | 0 | 0 |
Interest rate swaps | 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 | 117,000 | 9,797,000 |
Available-for-sale securities | 0 | 0 |
Total Assets | 117,000 | 9,797,000 |
Liabilities: | ||
Foreign exchange currency contracts, Liabilities | 9,597,000 | 366,000 |
Interest rate swaps | 81,000 | 37,000 |
Deferred compensation obligations | 11,112,000 | 10,155,000 |
Total Liabilities | 20,790,000 | 10,558,000 |
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 swaps | 0 | 0 |
Deferred compensation obligations | 0 | 0 |
Total Liabilities | $ 0 | $ 0 |
Fair Value Measurements (Deta54
Fair Value Measurements (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2016 | May. 02, 2015 | |
Asset impairment charge | ||
Period of time new retail locations in penetrated markets would need to be opened to be considered for impairment | 1 year | |
Selling, general and administrative expenses | Europe and North America | Retail locations | ||
Asset impairment charge | ||
Impairment charges | $ 0.2 | $ 1.1 |
Derivative Financial Instrume55
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 30, 2016 |
ASSETS: | ||
Derivatives, assets | $ 117 | $ 9,797 |
LIABILITIES: | ||
Derivatives, liabilities | 9,678 | 403 |
Derivatives designated as hedging instruments: | ||
LIABILITIES: | ||
Derivatives, liabilities | 5,748 | 47 |
Derivatives designated as hedging instruments: | Foreign exchange currency contracts | Other current assets/Other assets | Cash flow hedges | ||
ASSETS: | ||
Derivatives, assets | 99 | 7,491 |
Derivatives designated as hedging instruments: | Foreign exchange currency contracts | Accrued expenses/Other long-term liabilities | Cash flow hedges | ||
LIABILITIES: | ||
Derivatives, liabilities | 5,667 | 47 |
Derivatives designated as hedging instruments: | Interest rate swap | Other long-term liabilities | Cash flow hedges | ||
LIABILITIES: | ||
Derivatives, liabilities | 81 | 0 |
Derivatives not designated as hedging instruments: | ||
LIABILITIES: | ||
Derivatives, liabilities | 3,930 | 356 |
Derivatives not designated as hedging instruments: | Foreign exchange currency contracts | Other current assets | ||
ASSETS: | ||
Derivatives, assets | 18 | 2,306 |
Derivatives not designated as hedging instruments: | Foreign exchange currency contracts | Accrued expenses | ||
LIABILITIES: | ||
Derivatives, liabilities | 3,930 | 319 |
Derivatives not designated as hedging instruments: | Interest rate swap | Accrued expenses | ||
LIABILITIES: | ||
Derivatives, liabilities | $ 0 | $ 37 |
Derivative Financial Instrume56
Derivative Financial Instruments (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |||
Apr. 30, 2016 | Jan. 30, 2016 | May. 02, 2015 | Jan. 31, 2015 | |
Forward contracts designated as hedging instruments | ||||
Net unrealized loss in accumulated other comprehensive income (loss) related to cash flow hedges | $ (3,773) | $ 7,252 | $ 4,296 | $ 7,157 |
Foreign exchange currency cash flow hedge unrealized loss to be recognized in cost of product sales or other expense over the following 12 months | (900) | |||
Interest rate swap cash flow hedge unrealized loss to be recognized in interest expense over the following 12 months | $ (100) | |||
Cash flow hedges | Canada | Derivatives designated as hedging instruments | ||||
Forward contracts designated as hedging instruments | ||||
U.S. dollar forward contracts outstanding, maximum remaining maturity period (in months) | 18 months | |||
Cash flow hedges | Europe | Derivatives designated as hedging instruments | ||||
Forward contracts designated as hedging instruments | ||||
U.S. dollar forward contracts outstanding, maximum remaining maturity period (in months) | 18 months | |||
Foreign exchange currency contracts | ||||
Forward contracts designated as hedging instruments | ||||
Net unrealized loss in accumulated other comprehensive income (loss) related to cash flow hedges | $ (3,700) | |||
Foreign exchange currency contracts | Cash flow hedges | Canada | Derivatives designated as hedging instruments | ||||
Forward contracts designated as hedging instruments | ||||
U.S. dollar forward contracts purchased, total notional amount | 21,300 | |||
Notional amount of derivative outstanding | 59,000 | 48,200 | ||
Foreign exchange currency contracts | Cash flow hedges | Europe | Derivatives designated as hedging instruments | ||||
Forward contracts designated as hedging instruments | ||||
U.S. dollar forward contracts purchased, total notional amount | 18,900 | |||
Notional amount of derivative outstanding | 104,800 | $ 106,300 | ||
Interest rate swap | ||||
Forward contracts designated as hedging instruments | ||||
Net unrealized loss in accumulated other comprehensive income (loss) related to cash flow hedges | (100) | |||
Interest rate swap | Cash flow hedges | Derivatives designated as hedging instruments | ||||
Forward contracts designated as hedging instruments | ||||
Notional amount of derivative outstanding | $ 21,500 | |||
Fixed rate of interest rate swap designated as a cash flow hedge (as a percent) | 3.06% | |||
Derivate maturity date | Jan. 31, 2026 |
Derivative Financial Instrume57
Derivative Financial Instruments (Details 3) - USD ($) | 3 Months Ended | ||
Apr. 30, 2016 | May. 02, 2015 | ||
Gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings (loss) | |||
Amount of ineffectiveness recognized in net earnings (loss) on interest rate swap | $ 0 | ||
Net after-tax derivative activity recorded in accumulated other comprehensive income (loss) | |||
Beginning balance gain | 7,252,000 | $ 7,157,000 | |
Net losses from changes in cash flow hedges | (9,880,000) | (926,000) | |
Net gains reclassified to earnings (loss) | (1,145,000) | (1,935,000) | |
Ending balance gain (loss) | (3,773,000) | 4,296,000 | |
Cost of product sales | |||
Gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings (loss) | |||
Loss recognized in OCI on foreign exchange currency contracts | (11,412,000) | (1,147,000) | |
Gain reclassified from accumulated OCI into earnings (loss) on foreign exchange currency contracts | [1] | 1,435,000 | 1,750,000 |
Other income/expense | |||
Gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings (loss) | |||
Loss recognized in OCI on foreign exchange currency contracts | (699,000) | (148,000) | |
Gain reclassified from accumulated OCI into earnings (loss) on foreign exchange currency contracts | [1] | 32,000 | 486,000 |
Interest expense | |||
Gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings (loss) | |||
Loss recognized in OCI on interest rate swap | (132,000) | 0 | |
Loss reclassified from accumulated OCI into earnings (loss) on interest rate swap | [1] | (51,000) | $ 0 |
Interest income | |||
Gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings (loss) | |||
Amount of ineffectiveness recognized in net earning (loss) on foreign exchange currency contracts | $ 500,000 | ||
[1] | The Company recognized gains of $0.5 million resulting from the ineffective portion related to foreign exchange currency contracts in interest income during the three months ended April 30, 2016. The ineffective portion related to foreign exchange currency contracts was immaterial during the three months ended May 2, 2015. There was no ineffectiveness recognized related to the interest rate swap during the three months ended April 30, 2016. |
Derivative Financial Instrume58
Derivative Financial Instruments (Details 4) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2016 | May. 02, 2015 | Jan. 30, 2016 | |
Derivatives not designated as hedging instruments | Euro | |||
Derivative instruments not designated as hedging instruments | |||
U.S. dollar forward contracts outstanding, maximum remaining maturity period (in months) | 12 months | ||
Derivatives not designated as hedging instruments | Canadian dollar | |||
Derivative instruments not designated as hedging instruments | |||
U.S. dollar forward contracts outstanding, maximum remaining maturity period (in months) | 11 months | ||
Foreign exchange currency contracts | Other income/expense | |||
Derivative instruments not designated as hedging instruments | |||
Gain (loss) on derivatives not designated as hedging instruments recognized in earnings (loss) before taxes | $ (6,029) | $ (701) | |
Foreign exchange currency contracts | Derivatives not designated as hedging instruments | Euro | |||
Derivative instruments not designated as hedging instruments | |||
U.S. dollar forward contracts outstanding | 68,500 | $ 54,800 | |
Foreign exchange currency contracts | Derivatives not designated as hedging instruments | Canadian dollar | |||
Derivative instruments not designated as hedging instruments | |||
U.S. dollar forward contracts outstanding | 22,600 | $ 25,800 | |
Interest rate swap | Other income/expense | |||
Derivative instruments not designated as hedging instruments | |||
Gain (loss) on derivatives not designated as hedging instruments recognized in earnings (loss) before taxes | $ 38 | $ 49 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, € in Millions, $ in Millions | May. 30, 2016EUR (€) | May. 30, 2016USD ($) | May. 25, 2016$ / shares | Jul. 30, 2016EUR (€) | Jul. 30, 2016USD ($) | Apr. 30, 2016$ / shares | May. 02, 2015$ / shares |
Subsequent Events | |||||||
Cash dividend announced on common stock (in dollars per share) | $ 0.225 | $ 0.225 | |||||
Subsequent Events | |||||||
Subsequent Events | |||||||
Cash dividend announced on common stock (in dollars per share) | $ 0.225 | ||||||
Payment date of cash dividend | Jun. 24, 2016 | ||||||
Record date of cash dividend | Jun. 8, 2016 | ||||||
Net proceeds from sale of the Company's minority interest equity holding in a privately-held boutique apparel company | € 31 | $ 35 | |||||
Subsequent Events | Other income/expense | |||||||
Subsequent Events | |||||||
Gain from sale of the Company's minority interest equity holding in a privately-held boutique apparel company | € 20 | $ 22 | € 20 | $ 22 |