Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 02, 2019 | Mar. 25, 2019 | Aug. 04, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | GUESS INC | ||
Trading Symbol | GES | ||
Entity Central Index Key | 0000912463 | ||
Document Type | 10-K | ||
Document Period End Date | Feb. 2, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --02-02 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,248,243,784 | ||
Entity Common Stock, Shares Outstanding | 81,726,553 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 210,460 | $ 367,441 |
Accounts receivable, net | 321,995 | 259,996 |
Inventories | 468,897 | 428,304 |
Other current assets | 87,343 | 52,964 |
Total current assets | 1,088,695 | 1,108,705 |
Property and equipment, net | 315,558 | 294,254 |
Goodwill | 37,072 | 38,481 |
Other intangible assets, net | 6,934 | 5,977 |
Deferred tax assets | 57,224 | 68,386 |
Restricted cash | 535 | 241 |
Other assets | 143,187 | 139,590 |
Total assets | 1,649,205 | 1,655,634 |
Current liabilities: | ||
Current portion of capital lease obligations and borrowings | 4,315 | 2,845 |
Accounts payable | 286,657 | 264,438 |
Accrued expenses | 252,392 | 200,562 |
Total current liabilities | 543,364 | 467,845 |
Long-term debt and capital lease obligations | 35,012 | 39,196 |
Deferred rent and lease incentives | 84,893 | 81,564 |
Other long-term liabilities | 127,438 | 127,964 |
Total liabilities | 790,707 | 716,569 |
Redeemable noncontrolling interests | 4,853 | 5,590 |
Commitments and contingencies (Note 14) | ||
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 142,707,300 and 141,623,687 shares, outstanding 81,379,660 and 81,371,118 shares, as of February 2, 2019 and February 3, 2018, respectively | 814 | 813 |
Paid-in capital | 523,331 | 498,249 |
Retained earnings | 1,077,747 | 1,132,173 |
Accumulated other comprehensive loss | (126,179) | (93,062) |
Treasury stock, 61,327,640 and 60,252,569 shares as of February 2, 2019 and February 3, 2018, respectively | (638,486) | (621,354) |
Guess, Inc. stockholders’ equity | 837,227 | 916,819 |
Nonredeemable noncontrolling interests | 16,418 | 16,656 |
Total stockholders’ equity | 853,645 | 933,475 |
Total liabilities and stockholders' equity | $ 1,649,205 | $ 1,655,634 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Feb. 02, 2019 | Feb. 03, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 142,707,300 | 141,623,687 |
Common stock, shares outstanding (in shares) | 81,379,660 | 81,371,118 |
Treasury stock, shares (in shares) | 61,327,640 | 60,252,569 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) shares in Thousands, € in Millions | 12 Months Ended | ||
Feb. 02, 2019USD ($)$ / sharesshares | Feb. 03, 2018USD ($)$ / sharesshares | Jan. 28, 2017USD ($)$ / sharesshares | |
Net revenue | $ 2,609,694,000 | $ 2,363,754,000 | $ 2,190,453,000 |
Cost of product sales | 1,670,090,000 | 1,534,906,000 | 1,445,413,000 |
Gross profit | 939,604,000 | 828,848,000 | 745,040,000 |
Selling, general and administrative expenses | 835,293,000 | 741,641,000 | 680,504,000 |
European Commission fine | 45,637,000 | 0 | 0 |
Asset impairment charges | 6,939,000 | 8,479,000 | 34,385,000 |
Net (gains) losses on lease terminations | (477,000) | 11,373,000 | (695,000) |
Restructuring charges | 0 | 0 | 6,083,000 |
Earnings from operations | 52,212,000 | 67,355,000 | 24,763,000 |
Other income (expense): | |||
Interest expense | (3,407,000) | (2,431,000) | (1,897,000) |
Interest income | 4,494,000 | 4,106,000 | 1,890,000 |
Other income (expense), net | (6,591,000) | 1,241,000 | 28,854,000 |
Total other income | (5,504,000) | 2,916,000 | 28,847,000 |
Earnings before income tax expense | 46,708,000 | 70,271,000 | 53,610,000 |
Income tax expense | 29,542,000 | 74,172,000 | 28,212,000 |
Net earnings (loss) | 17,166,000 | (3,901,000) | 25,398,000 |
Net earnings attributable to noncontrolling interests | 3,067,000 | 3,993,000 | 2,637,000 |
Net earnings (loss) attributable to Guess, Inc. | $ 14,099,000 | $ (7,894,000) | $ 22,761,000 |
Net earnings (loss) per common share attributable to common stockholders (Note 18): | |||
Basic (in dollars per share) | $ / shares | $ 0.17 | $ (0.11) | $ 0.27 |
Diluted (in dollars per share) | $ / shares | $ 0.16 | $ (0.11) | $ 0.27 |
Weighted average common shares outstanding attributable to common stockholders (Note 18): | |||
Basic (in shares) | shares | 80,146 | 82,189 | 83,666 |
Diluted (in shares) | shares | 81,589 | 82,189 | 83,829 |
Product sales | |||
Net revenue | $ 2,526,500,000 | $ 2,290,999,000 | $ 2,118,534,000 |
Net royalties | |||
Net revenue | $ 83,194,000 | $ 72,755,000 | $ 71,919,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings (loss) | $ 17,166 | $ (3,901) | $ 25,398 |
Foreign currency translation adjustment | |||
Gains (losses) arising during the period | (52,733) | 93,416 | (2,632) |
Derivative financial instruments designated as cash flow hedges | |||
Gains (losses) arising during the period | 12,652 | (23,388) | 887 |
Less income tax effect | (1,690) | 2,980 | 172 |
Reclassification to net earnings (loss) for (gains) losses realized | 7,118 | 656 | (3,603) |
Less income tax effect | (712) | (242) | 692 |
Marketable securities | |||
Losses arising during the period | 0 | 0 | (4) |
Less income tax effect | 0 | 0 | 3 |
Reclassification to net earnings (loss) for losses realized | 0 | 0 | 25 |
Less income tax effect | 0 | 0 | (9) |
Defined benefit plans | |||
Net actuarial gains (losses) | 1,733 | (2,248) | (1,185) |
Foreign currency and other adjustments | 311 | (269) | (72) |
Less income tax effect | (528) | 518 | 95 |
Net actuarial loss amortization | 600 | 462 | 341 |
Prior service credit amortization | (28) | (27) | (28) |
Less income tax effect | (76) | (83) | (74) |
Total comprehensive income (loss) | (16,187) | 67,874 | 20,006 |
Less comprehensive income attributable to noncontrolling interests: | |||
Net earnings | 3,067 | 3,993 | 2,637 |
Foreign currency translation adjustment | (236) | 2,238 | (2,057) |
Amounts attributable to noncontrolling interests | 2,831 | 6,231 | 580 |
Comprehensive income (loss) attributable to Guess, Inc. | $ (19,018) | $ 61,643 | $ 19,426 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Nonredeemable Noncontrolling Interests |
Balance at beginning of period at Jan. 30, 2016 | $ 1,031,293 | $ 838 | $ 468,574 | $ 1,269,775 | $ (158,054) | $ (562,658) | $ 12,818 |
Stock at beginning of period (in shares) at Jan. 30, 2016 | 83,833,937 | 56,195,000 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings (loss) | 25,398 | 22,761 | 2,637 | ||||
Foreign currency translation adjustment | (2,632) | (575) | (2,057) | ||||
Gain (loss) on derivative financial instruments designated as cash flow hedges | (1,852) | (1,852) | |||||
Other-than-temporary-impairment and unrealized loss on marketable securities | 15 | 15 | |||||
Actuarial valuation loss and related amortization, prior service credit amortization and foreign currency and other adjustments on defined benefit plans | (923) | (923) | |||||
Issuance of common stock under stock compensation plans including tax effect (in shares) | 481,037 | ||||||
Issuance of common stock under stock compensation plans including tax effect | (3,813) | $ 6 | (3,819) | ||||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 44,486 | (44,486) | |||||
Issuance of stock under Employee Stock Purchase Plan | 558 | 112 | $ 446 | ||||
Share-based compensation | 16,908 | 16,698 | 210 | ||||
Dividends, $0.90 per share | (76,997) | (76,997) | |||||
Share repurchases (in shares) | (289,968) | 289,968 | |||||
Share repurchases | (3,532) | $ (3) | 3 | $ (3,532) | |||
Purchase of redeemable noncontrolling interest | 0 | (1,133) | 1,133 | ||||
Noncontrolling interest capital distribution | (2,759) | (2,759) | |||||
Redeemable noncontrolling interest redemption value adjustment | (670) | (670) | |||||
Balance at end of period at Jan. 28, 2017 | 980,994 | $ 841 | 480,435 | 1,215,079 | (161,389) | $ (565,744) | 11,772 |
Stock at end of period (in shares) at Jan. 28, 2017 | 84,069,492 | 56,440,482 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings (loss) | (3,901) | (7,894) | 3,993 | ||||
Foreign currency translation adjustment | 93,416 | 91,178 | 2,238 | ||||
Gain (loss) on derivative financial instruments designated as cash flow hedges | (19,994) | (19,994) | |||||
Actuarial valuation loss and related amortization, prior service credit amortization and foreign currency and other adjustments on defined benefit plans | (1,647) | (1,647) | |||||
Issuance of common stock under stock compensation plans including tax effect (in shares) | 1,113,713 | ||||||
Issuance of common stock under stock compensation plans including tax effect | (1,257) | $ 10 | (1,267) | ||||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 54,300 | (54,300) | |||||
Issuance of stock under Employee Stock Purchase Plan | 566 | 17 | $ 549 | ||||
Share-based compensation | 18,852 | 18,758 | 94 | ||||
Dividends, $0.90 per share | (76,048) | (76,048) | |||||
Share repurchases (in shares) | (3,866,387) | 3,866,387 | |||||
Share repurchases | (56,159) | $ (38) | 38 | $ (56,159) | |||
Noncontrolling interest capital contribution | 11 | 11 | |||||
Noncontrolling interest capital distribution | (1,358) | (1,358) | |||||
Balance at end of period at Feb. 03, 2018 | $ 933,475 | $ 813 | 498,249 | 1,132,173 | (93,062) | $ (621,354) | 16,656 |
Stock at end of period (in shares) at Feb. 03, 2018 | 81,371,118 | 81,371,118 | 60,252,569 | ||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings (loss) | $ 17,166 | 14,099 | 3,067 | ||||
Foreign currency translation adjustment | (52,733) | (52,497) | (236) | ||||
Gain (loss) on derivative financial instruments designated as cash flow hedges | 17,368 | 17,368 | |||||
Actuarial valuation loss and related amortization, prior service credit amortization and foreign currency and other adjustments on defined benefit plans | 2,012 | (2,012) | |||||
Issuance of common stock under stock compensation plans including tax effect (in shares) | 1,083,613 | ||||||
Issuance of common stock under stock compensation plans including tax effect | 5,006 | $ 12 | 4,994 | ||||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 43,737 | (43,737) | |||||
Issuance of stock under Employee Stock Purchase Plan | 738 | 283 | $ 455 | ||||
Share-based compensation | 19,973 | 19,794 | 179 | ||||
Dividends, $0.90 per share | (74,533) | (74,533) | |||||
Share repurchases (in shares) | (1,118,808) | 1,118,808 | |||||
Share repurchases | (17,587) | $ (11) | 11 | $ (17,587) | |||
Noncontrolling interest capital distribution | (3,069) | (3,069) | |||||
Balance at end of period at Feb. 02, 2019 | $ 853,645 | $ 814 | $ 523,331 | $ 1,077,747 | $ (126,179) | $ (638,486) | $ 16,418 |
Stock at end of period (in shares) at Feb. 02, 2019 | 81,379,660 | 81,379,660 | 61,327,640 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per share (in dollars per share) | $ 0.9 | $ 0.9 | $ 0.90 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Cash flows from operating activities: | |||
Net earnings (loss) | $ 17,166 | $ (3,901) | $ 25,398 |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | |||
Depreciation and amortization of property and equipment | 64,395 | 62,083 | 67,480 |
Amortization of intangible assets | 3,962 | 1,505 | 1,839 |
Share-based compensation expense | 19,973 | 18,852 | 16,908 |
Unrealized forward contract (gains) losses | (138) | 3,087 | (3,157) |
Deferred income taxes | 5,422 | 23,802 | 408 |
Net loss on disposal and impairment of property and equipment and long-term assets | 7,267 | 6,891 | 11,809 |
Other items, net | 13,297 | (7,832) | 3,495 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (41,519) | (11,656) | (10,805) |
Inventories | (74,275) | (28,120) | (57,096) |
Prepaid expenses and other assets | (27,042) | (429) | (1,839) |
Accounts payable and accrued expenses | 84,531 | 69,299 | 19,054 |
Deferred rent and lease incentives | 6,339 | 1,221 | 3,117 |
Other long-term liabilities | 2,301 | 13,568 | (4,871) |
Net cash provided by operating activities | 81,679 | 148,370 | 71,740 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (108,117) | (84,655) | (90,581) |
Proceeds from sale of long-term assets | 0 | 1,052 | 43,399 |
Changes in other assets | 0 | 753 | 0 |
Acquisition of businesses, net of cash acquired | (6,404) | (4,850) | (2,068) |
Net cash settlement of forward contracts | 1,444 | (2,150) | 266 |
Purchases of investments | (10,451) | (497) | 0 |
Net cash used in investing activities | (123,528) | (90,347) | (48,984) |
Cash flows from financing activities: | |||
Payment of debt issuance costs | 0 | 0 | (111) |
Proceeds from borrowings | 22,728 | 166 | 21,500 |
Repayment of borrowings and capital lease obligations | (25,007) | (1,633) | (4,747) |
Dividends paid | (73,594) | (76,057) | (76,503) |
Purchase of redeemable noncontrolling interest | 0 | 0 | (4,445) |
Noncontrolling interest capital contribution | 0 | 962 | 2,157 |
Noncontrolling interest capital distribution | (3,069) | (1,358) | (2,759) |
Issuance of common stock, net of tax withholdings on vesting of stock awards | 5,744 | (690) | (594) |
Purchase of treasury stock | (23,620) | (50,127) | (3,532) |
Net cash used in financing activities | (96,818) | (128,737) | (69,034) |
Effect of exchange rates on cash, cash equivalents and restricted cash | (18,020) | 40,746 | (2,071) |
Net change in cash, cash equivalents and restricted cash | (156,687) | (29,968) | (48,349) |
Cash, cash equivalents and restricted cash at the beginning of the year | 367,682 | 397,650 | 445,999 |
Cash, cash equivalents and restricted cash at the end of the year | 210,995 | 367,682 | 397,650 |
Supplemental cash flow data: | |||
Interest paid | 2,731 | 2,078 | 1,225 |
Income taxes paid | 40,772 | 26,907 | 24,869 |
Non-cash investing and financing activity: | |||
Assets acquired under capital lease obligations | $ 1,172 | $ 18,502 | $ 0 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies and Practices | 12 Months Ended |
Feb. 02, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business and Summary of Significant Accounting Policies and Practices | Description of the Business and Summary of Significant Accounting Policies and Practices Description of the Business Guess?, Inc. (the “Company” or “GUESS?”) designs, markets, distributes and licenses a leading lifestyle collection of contemporary apparel and accessories for men, women and children that reflect the American lifestyle and European fashion sensibilities. The Company’s designs are sold in GUESS? owned stores, to a network of wholesale accounts that includes better department stores, selected specialty retailers and upscale boutiques and through the Internet. GUESS? branded products, some of which are produced under license, are also sold internationally through a series of retail store licensees and wholesale distributors. Reclassifications The Company has made certain reclassifications to prior period amounts to conform to the current period presentation within the accompanying notes to the consolidated financial statements. Fiscal Year The Company operates on a 52 / 53 -week fiscal year calendar, which ends on the Saturday nearest to January 31 of each year. All references herein to “fiscal 2019 ,” “fiscal 2018 ” and “fiscal 2017 ” represent the results of the 52 -week fiscal years ended February 2, 2019 and January 28, 2017 and the 53 -week fiscal year ended February 3, 2018 . The additional week in fiscal 2018 occurred during the fourth quarter ended February 3, 2018 . References to “fiscal 2020 ” represent the 52 -week fiscal year ending February 1, 2020. Principles of Consolidation The consolidated financial statements include the accounts of Guess?, Inc., its wholly-owned direct and indirect subsidiaries and its non-wholly-owned subsidiaries and joint ventures in which the Company has a controlling financial interest and is determined to be the primary beneficiary. Accordingly, all references herein to “Guess?, Inc.” include the consolidated results of the Company, its wholly-owned subsidiaries and its joint ventures. All intercompany accounts and transactions are eliminated during the consolidation process. Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosed in the accompanying notes. Significant areas requiring the use of management estimates relate to the allowances for doubtful accounts, sales return and markdown allowances, gift card and loyalty accruals, valuation of inventories, share-based compensation, recoverability of deferred taxes, unrecognized tax benefits, the useful life of assets for depreciation and amortization, evaluation of asset impairment, pension obligations, workers’ compensation and medical self-insurance expense and accruals, litigation reserves and restructuring expense and accruals. Actual results could differ from those estimates. Business Segment Reporting Where applicable, the Company reports information about business segments and related disclosures about products and services, geographic areas and major customers. The Company’s businesses are grouped into five reportable segments for management and internal financial reporting purposes: Americas Retail , Americas Wholesale , Europe , Asia and Licensing . The Company’s Americas Retail, Americas Wholesale, Europe and Licensing reportable segments are the same as their respective operating segments. Certain components of the Company’s Asia reportable segment are separate operating segments based on regions which have been aggregated into the Asia reportable segment for disclosure purposes. Management evaluates segment performance based primarily on revenues and earnings (loss) from operations before corporate performance-based compensation costs, net gains (losses) from lease terminations, asset impairment charges, restructuring charges and certain non-recurring charges, if any. The Americas Retail segment includes the Company’s retail and e-commerce operations in the Americas. The Americas Wholesale segment includes the Company’s wholesale operations in the Americas. 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 and the Pacific. 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, net gains (losses) on lease terminations, asset impairment charges, restructuring charges and certain non-recurring charges, if any. Corporate overhead costs are presented separately and generally include, among other things, the following unallocated corporate costs: accounting and finance, executive compensation, corporate performance-based compensation, facilities, global advertising and marketing, human resources, information technology and legal. Information regarding these segments is summarized in Note 17 . Revenue Recognition Products Transferred at a Point in Time The Company recognizes the majority of its revenue from its direct-to-consumer (brick-and-mortar retail stores and concessions as well as e-commerce) and wholesale distribution channels at a point in time when it satisfies a performance obligation and transfers control of the product to the respective customer. For the Company’s brick-and-mortar retail stores and concessions, revenue is typically recognized at the point of sale and includes estimates of variable consideration such as allowances for sales returns and loyalty award obligations, where applicable. The Company adopted the new revenue recognition standard effective as of February 4, 2018 , and accordingly, revenue generated from the Company’s e-commerce sites is recognized when merchandise is transferred to a common carrier. This is a change compared to the Company’s treatment under previous guidance where revenue from the Company’s e-commerce sites was recognized based on the estimated customer receipt date. This change had an immaterial impact on revenue for fiscal 2019 . Revenue generated from the Company’s wholesale distribution channel is recognized when control transfers to the customer, which generally occurs upon shipment. The amount of revenue that is recognized is based on the transaction price, which represents the invoiced amount and includes estimates of variable consideration such as allowances for sales returns and markdowns, where applicable. The amount of variable consideration included in the transaction price may be constrained and is included only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized under the contract will not occur in a future period. The Company accepts payments at its brick-and-mortar retail locations and its e-commerce sites in the form of cash, credit cards, gift cards and loyalty points, where applicable. Payment terms, typically less than one year, are offered to the Company’s wholesale customers and do not include a significant financing component. The Company extends credit to wholesale customers based upon an evaluation of the customer’s financial condition and credit history and generally requires no collateral but does obtain credit insurance when considered appropriate . As of February 2, 2019 , approximately 49% of the Company’s total net trade accounts receivable and 61% of its European net trade receivables were subject to credit insurance coverage, certain bank guarantees or letters of credit for collection purposes. The Company’s credit insurance coverage contains certain terms and conditions specifying deductibles and annual claim limits. The Company maintains allowances for doubtful accounts for estimated losses that result from the inability of its wholesale customers to make their required payments. The Company bases its allowances on analysis of the aging of accounts receivable at the date of the financial statements, assessments of historical and current collection trends, an evaluation of the impact of current economic conditions and whether the Company has obtained credit insurance or other guarantees . Management performs regular evaluations concerning the ability of its customers to satisfy their obligations and records a provision for doubtful accounts based on these evaluations. The Company’s credit losses for the periods presented were not significant compared to sales and did not significantly exceed management’s estimates. Refer to Note 3 for further information regarding the Company’s allowance for doubtful accounts. Shipping and handling costs associated with outbound freight incurred to transfer a product to a customer are accounted for as fulfillment costs and are included in selling, general and administrative (“SG&A”) expenses. Sales and usage-based taxes collected from customers and remitted directly to governmental authorities are excluded from net revenues. This is consistent with the presentation of such amounts in previous years. The Company does not have significant contract balances related to its direct-to-consumer or wholesale distribution channels other than the allowance for sales returns and markdowns as well as liabilities related to its gift cards and loyalty programs, which are included in accrued expenses. The Company also does not have significant contract acquisition costs related to its direct-to-consumer or wholesale distribution channels. Sales Return Allowances The Company accrues for estimated sales returns in the period in which the related revenue is recognized. To recognize the financial impact of sales returns, the Company estimates the amount of goods that will be returned based on historical experience and current trends and reduces sales and cost of sales accordingly. The Company’s policy allows retail customers in certain regions a grace period to return merchandise following the date of sale. Substantially all of these returns are considered to be resalable at a price that exceeds the cost of the merchandise. The Company adopted the new revenue recognition standard effective as of February 4, 2018 , and accordingly, has included the allowance for sales returns in accrued expenses and the estimated cost associated with such sales returns within other current assets in its consolidated balance sheet. Prior to the adoption of the new revenue recognition standard, the Company recorded the allowance for wholesale sales returns against accounts receivable and the estimated cost of inventory associated with the allowance for sales returns in inventories. The allowance for retail sales returns was included in accrued expenses which is consistent with the current presentation. As of February 2, 2019 , the Company included $33.2 million in accrued expenses related to the allowance for sales returns and $13.0 million in other current assets related to the estimated cost of such sales returns. As of February 3, 2018 , the Company included $25.0 million and $2.9 million in accounts receivable and accrued expenses, respectively, related to the allowance for sales returns and $11.9 million in inventories related to the estimated cost of such sales returns. Markdown Allowances Costs associated with customer markdowns are recorded as a reduction to revenues and any amounts unapplied to existing receivables are included in accrued expenses. These markdown allowances resulted from seasonal negotiations with the Company’s wholesale customers, as well as historical trends and the evaluation of the impact of current economic conditions. The Company adopted the new revenue recognition standard effective as of February 4, 2018 , and accordingly, has included the allowance for markdowns in accrued expenses in its consolidated balance sheet. As of February 2, 2019 , the Company included $12.1 million in accrued expenses related to the allowance for markdowns. As of February 3, 2018 , the Company included $10.8 million in accounts receivable related to the allowance for markdowns. Gift Cards Gift card breakage is income recognized due to the non-redemption of a portion of gift cards sold by the Company for which a liability was recorded in prior periods. Gifts cards are mainly used in the U.S. and Canada. The Company issues its gift cards in the U.S. and Canada through one of its subsidiaries and is not required by law to escheat the value of unredeemed gift cards to the state in which the subsidiary is domiciled. Estimated breakage amounts are accounted for under the redemption recognition method and are classified as additional net revenues as the gift cards are redeemed. The Company’s gift card breakage rate is approximately 6.3% and 5.5% for the U.S. retail business and Canadian retail business, respectively, based upon historical redemption patterns, which represents the cumulative estimated amount of gift card breakage from the inception of the electronic gift card program in late 2002. Based upon historical redemption trends, the Company recognizes estimated gift card breakage as a component of net revenue in proportion to actual gift card redemptions, over the period that remaining gift card values are redeemed. Any future revisions to the estimated breakage rate may result in changes in the amount of breakage income recognized in future periods. There have been no changes to the Company’s accounting for gift card breakage upon adoption of the new revenue recognition standard effective as of the first quarter of fiscal 2019. In fiscal 2019 , fiscal 2018 and fiscal 2017 , the Company recognized $0.7 million , $0.7 million and $0.8 million of gift card breakage to revenue, respectively. As of February 2, 2019 and February 3, 2018 , the Company included $5.4 million and $5.2 million in accrued expenses related to its gift card liability, respectively. Loyalty Programs The Company has customer loyalty programs in North America, Europe and Asia which cover all of its brands. Under certain of the programs, primarily in the U.S. and Canada, customers accumulate points based on purchase activity. Once a loyalty program member achieves a certain point level, the member earns awards that may only be redeemed for merchandise. Unredeemed points generally expire after six months without additional purchase activity and unredeemed awards generally expire after two months . Where applicable, the Company allocates a portion of the transaction price from sales in its direct-to-consumer channel to its loyalty program by using historical redemption rates to estimate the value of future award redemptions. This amount is accrued in current liabilities and recorded as a reduction of net revenue in the period which the related revenue is recognized. During fiscal 2019 , fiscal 2018 and fiscal 2017, activity related to the Company’s loyalty programs increased (decreased) net revenue by $(1.7) million , $0.3 million and $0.7 million , respectively. The aggregate dollar value of the loyalty program accruals included in accrued expenses was $5.7 million and $3.8 million as of February 2, 2019 and February 3, 2018 , respectively. Future revisions to the estimated liability may result in changes to net revenue. Intellectual Property Transferred Over Time The Company’s trademark license agreements represent symbolic licenses that are dependent on the Company’s continued support over the term of the license agreement. The amount of revenue that is recognized from the licensing arrangements is based on sales-based royalty and advertising fund contributions as well as specific fixed payments, where applicable. The typical license agreement requires that the licensee pay the Company the greater of a royalty based on a percentage of the licensee’s net sales of licensed products or a guaranteed annual minimum royalty that typically increases over the term of the license agreement . Generally, licensees are also required to make contributions to advertising funds, as a percentage of their sales, or may elect to increase their contribution to support specific brand-building initiatives . The Company recognizes revenue from sales-based royalty and advertising fund contributions when the related sales occur, which is consistent with the timing of when the performance obligation is satisfied. The Company adopted the new revenue recognition standard effective as of February 4, 2018 , and accordingly, has recorded advertising contributions in revenue on a gross basis separate from any related advertising expenditures made by the Company which are recorded in SG&A expenses in the Company’s consolidated statements of income (loss). Prior to the adoption of the new revenue recognition standard, the Company recorded advertising contributions received from its licensees and the related advertising expenditures incurred by the Company on a net basis in its consolidated balance sheet. Under previous guidance, to the extent that the advertising contributions exceed the Company’s advertising expenditures for its licensees, the excess contribution was treated as a deferred liability and was included in accrued expenses in the Company’s consolidated balance sheet. Refer to Note 2 for detail regarding the impact of this change on the Company’s consolidated balance sheet and its consolidated statements of income (loss) as a result of the adoption of the new revenue recognition standard. The Company records royalty and advertising payments received on the Company’s purchases of licensed product as a reduction of the cost of the licensed product. The Company’s trademark license agreements customarily provide for a multi-year initial term ranging from three to ten years, with a possible option to renew prior to expiration for an additional multi-year period . Several of the Company’s key license agreements provide for specified, fixed cash rights payments over and above our normal, ongoing royalty payments in consideration of the grant of the license rights. These payments are recognized ratably as revenue over the term of the license agreement and do not include a significant financing component. The unrecognized portion of upfront payments is included in deferred royalties in accrued expenses and other long-term liabilities depending on the short or long-term nature of the payments to be recognized. As of February 2, 2019 , the Company had $6.4 million and $ 15.5 million of deferred royalties included in accrued expenses and other long-term liabilities, respectively. This compares to $6.8 million and $ 12.8 million of deferred royalties included in accrued expenses and other long-term liabilities, respectively, at February 3, 2018 . In fiscal 2019 , fiscal 2018 and fiscal 2017 , the Company recognized $13.0 million , $12.0 million and $13.9 million in net royalties related to the amortization of the deferred royalties, respectively. Contract balances related to the Company’s licensing distribution channel consist primarily of royalty receivables and liabilities related to deferred royalties. Refer to Note 3 for further information on royalty receivables. The Company does not have significant contract acquisition costs related to its licensing operations. Refer to Note 17 for further information on disaggregation of revenue by segment and country. Classification of Certain Costs and Expenses The Company includes inbound freight charges, purchasing costs and related overhead, retail store occupancy costs, including rent and depreciation, and a portion of the Company’s distribution costs related to its direct-to-consumer business in cost of product sales. Distribution costs related primarily to the wholesale business are included in SG&A expenses and amounted to $55.7 million , $34.2 million and $22.6 million for fiscal 2019 , fiscal 2018 and fiscal 2017 , respectively. The Company also includes store selling, selling and merchandising, advertising, design and other corporate overhead costs as a component of SG&A expenses. The Company classifies amounts billed to customers for shipping fees as revenues and classifies costs related to shipping as cost of product sales in the accompanying consolidated statements of income (loss). Advertising and Marketing Costs The Company expenses the cost of advertising as incurred. Advertising and marketing expenses charged to operations for fiscal 2019 , fiscal 2018 and fiscal 2017 were $56.8 million , $36.3 million and $37.1 million , respectively. The adoption of the new revenue recognition standard resulted in additional advertising expense of $9.6 million during fiscal 2019. See Note 2 - New Accounting Guidance for additional information. Share-Based Compensation The Company recognizes compensation expense for all share-based awards granted based on the grant date fair value. The fair value of each stock option is estimated on the grant date using the Black-Scholes option-pricing model and involves several assumptions, including the risk-free interest rate, expected volatility, dividend yield and expected life . The risk-free interest rate is based on the U.S. Treasury yield curve in effect for the expected term of the option at the time of grant. The expected stock price volatility is determined based on an average of both historical volatility and implied volatility. Implied volatility is derived from exchange traded options on the Company’s common stock. The expected dividend yield is based on the Company’s history and expectations of dividend payouts. The expected life is determined based on historical trends. Compensation expense for nonvested stock options and stock awards/units that are not subject to performance-based vesting conditions is recognized on a straight-line basis over the vesting period . During fiscal 2018, the Company adopted authoritative guidance which eliminated the requirement to estimate forfeitures, but rather provides for an election that would allow entities to account for forfeitures as they occur. In addition, the Company has granted certain nonvested units that require certain minimum performance targets to be achieved in order for these awards to vest . Vesting is also subject to continued service requirements through the vesting date . Compensation expense for performance-based awards that vest in increments is recognized based on an accelerated attribution method . If the minimum performance targets are not forecasted to be achieved, no expense is recognized during the period . The Company has also granted certain nonvested stock units which are subject to market-based performance targets in order for these units to vest. Vesting is also subject to continued service requirements through the vesting date. The grant date fair value for such nonvested stock units was estimated using a Monte Carlo simulation that incorporates option-pricing inputs covering the period from the grant date through the end of the performance period. Compensation expense for such nonvested stock units is recognized on a straight-line basis over the vesting period, regardless of whether the market condition is satisfied. Certain restricted stock units vest immediately but are considered contingently returnable as a result of certain service conditions. Compensation expense for these restricted stock units will be recognized on a straight-line basis over the implied service period. Foreign Currency Foreign Currency Translation Adjustment The local selling currency is typically the functional currency for all of the Company’s significant international operations. In accordance with authoritative guidance, assets and liabilities of the Company’s foreign operations are translated from foreign currencies into U.S. dollars at period-end rates, while income and expenses are translated at the weighted average exchange rates for the period. The related translation adjustments are reflected as a foreign currency translation adjustment in accumulated other comprehensive income (loss) within stockholders’ equity. In addition, the Company records foreign currency translation adjustments related to its noncontrolling interests within stockholders’ equity. 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 (see below). Changes in the fair values of these foreign exchange currency 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. The total foreign currency translation adjustment de creased stockholders’ equity (including amounts attributable to nonredeemable noncontrolling interests) by $52.7 million , from an accumulated foreign currency translation loss of $71.3 million as of February 3, 2018 to an accumulated foreign currency translation loss of $124.0 million as of February 2, 2019 . Foreign Currency Transaction Gains and Losses Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency, including gains and losses on foreign exchange currency contracts (see below), are included in the consolidated statements of income (loss). Net foreign currency transaction gains (losses) included in the determination of net earnings (loss) were $(9.6) million , $(5.9) million and $3.6 million for fiscal 2019 , fiscal 2018 and fiscal 2017 , respectively. Derivatives Foreign Exchange Currency Contracts The Company operates in foreign countries, which exposes it to market risk associated with foreign currency exchange rate fluctuations. Various transactions that occur primarily in Europe, Canada, South Korea, China, Hong Kong, and Mexico are denominated in U.S. dollars, British pounds and Russian rubles 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 has entered into certain forward contracts to hedge the risk of a portion of these anticipated foreign currency transactions against 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 does not hedge all transactions denominated in foreign currency. The Company may also hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries. Changes in the fair value of the U.S. dollar/euro and U.S. dollar/Canadian dollar forward contracts for anticipated U.S. dollar merchandise purchases 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. Changes in the fair value of U.S. dollar/euro forward contracts for U.S. dollar intercompany royalties 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 (expense) in the period in which the royalty expense is incurred. Changes in the fair value of any U.S. dollar/euro 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 (loss) until the sale or liquidation of the hedged net investment . The Company also has forward contracts that are not designated as hedging instruments for accounting purposes. Changes in fair value of forward contracts not designated as hedging instruments are reported in net earnings (loss) as part of other income (expense). 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. 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 (expense). Income Taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred income taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded when management believes it is more likely than not that the results of operations will not generate sufficient taxable earnings to realize certain net deferred tax assets. The Company accounts for uncertainty in income taxes in accordance with authoritative guidance, which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company also follows authoritative guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. 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 Company considers any restricted stock units with forfeitable dividend rights that are issued and outstanding, but considered contingently returnable if certain service conditions are not met, as common equivalent shares outstanding. These restricted stock units are excluded from the weighted average number of common shares outstanding and basic earnings (loss) per share calculation until the respective service conditions have been met. Diluted earnings per share represents net earnings attributable to common stockholders divided by the weighted average number of common shares outstanding, inclusive of the dilutive impact of common equivalent shares outstanding during the period. The potentially dilutive impact of common equivalent shares outstanding is not included in the computation of diluted net loss per share if the impact of the shares would be antidilutive due to a net loss incurred for the period. 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, distributed and undistributed earnings attributable to nonvested restricted stockholders are excluded from net earnings (loss) attributable to common stockholders for purposes of calculating basic and diluted earnin |
New Accounting Guidance
New Accounting Guidance | 12 Months Ended |
Feb. 02, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Guidance | New Accounting Guidance Changes in Accounting Policies In May 2014, the Financial Accounting Standards Board (“FASB”) issued a comprehensive new revenue recognition standard which superseded previous existing revenue recognition guidance. The standard is intended to clarify the principles of recognizing revenue and create common revenue recognition guidance between GAAP and International Financial Reporting Standards. The standard also requires expanded disclosures surrounding revenue recognition. During fiscal 2017, the FASB issued additional clarification guidance on the new revenue recognition standard which also included certain scope improvements and practical expedients. The Company adopted this guidance (including clarification guidance issued) effective February 4, 2018 using the modified retrospective method and, as a result, recorded a cumulative adjustment to increase retained earnings by approximately $5.8 million , net of taxes. The adjustment related primarily to changes in the presentation of advertising contributions received from the Company’s licensees and the related advertising expenditures incurred by the Company. Under previous guidance, the Company recorded advertising contributions received from its licensees and the related advertising expenditures incurred by the Company on a net basis in its consolidated balance sheet. To the extent that the advertising contributions exceeded the Company’s advertising expenditures for its licensees, the excess contribution was treated as a deferred liability and was included in accrued expenses in the Company’s consolidated balance sheet. Under the new revenue recognition standard, advertising contributions and related advertising expenditures related to the Company’s licensing business are recorded on a gross basis in the Company’s consolidated statements of income (loss). This change resulted in an increase to net revenue and SG&A expenses of $10.7 million and $9.6 million , respectively, during fiscal 2019 compared to the prior year. Other minor differences related to the timing of revenue recognition from the Company’s e-commerce operations, which are now recognized when merchandise is transferred to a common carrier rather than upon receipt by the customer, and a minimal change in the valuation of the amount that is deferred related to points earned under the Company’s loyalty programs. Additionally, allowances for wholesale sales returns and wholesale markdowns are now presented as accrued expenses rather than as reductions to accounts receivable, and the estimated cost associated with the allowance for sales returns is presented within other current assets rather than included in inventories in the Company’s consolidated balance sheet. Refer to Note 1 for the Company’s expanded disclosures on revenue recognition. 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. In February 2018, the FASB issued additional clarification guidance which made targeted improvements to address certain aspects of recognition, measurement, presentation and disclosure requirements for financial instruments. The Company adopted this guidance (including the clarification guidance) effective February 4, 2018. The adoption of this guidance did not result in a cumulative-effect adjustment as of the beginning of the current year and did not have a material impact on the Company’s consolidated financial statements or related disclosures. In October 2016, the FASB issued authoritative guidance which amends the accounting for income taxes on intra-entity transfers of assets other than inventory. This guidance requires that entities recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The income tax consequences on intra-entity transfers of inventory will continue to be deferred until the inventory has been sold to a third-party. The Company adopted this guidance effective February 4, 2018. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements or related disclosures. In March 2017, the FASB issued authoritative guidance related to the presentation of net periodic pension cost in the income statement. This guidance requires that the service cost component of net periodic pension cost be presented in the same line as other compensation costs arising from services rendered by the employees during the period. The other non-service components of net periodic pension cost are required to be presented in the income statement separately from the service cost component and outside of earnings from operations. This guidance also allows for the service cost component to be eligible for capitalization when applicable. The Company adopted this guidance effective February 4, 2018 on a retrospective basis for the presentation of the service cost component and other non-service components of net periodic pension cost in the income statement and on a prospective basis for capitalization of the service cost component. As a result, the Company reclassified $2.2 million and $2.1 million from SG&A expenses to other expense during fiscal 2018 and fiscal 2017 , respectively, which resulted in a related improvement in earnings from operations during each of the respective periods. Other than the change in presentation of other non-service components of net periodic pension cost within the Company’s consolidated statements of income (loss), the adoption of this guidance did not have an impact on the Company’s consolidated financial statements and related disclosures. In May 2017, the FASB issued authoritative guidance that provides clarification on accounting for modifications in share-based payment awards. The Company adopted this guidance effective February 4, 2018. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements or related disclosures. In June 2018, the FASB issued authoritative guidance that expanded the scope of stock compensation to include non-employee share-based payment transactions. The Company early adopted this guidance during the second quarter of fiscal 2019. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements or related disclosures. Recently Issued Accounting Guidance In February 2016, the FASB issued a comprehensive new lease standard which will supersede previous lease guidance. The standard requires a lessee to recognize an asset related to the right to use the underlying asset and a liability that approximates the present value of the lease payments over the term for contracts that qualify as leases under the new guidance. In July 2018, the FASB issued authoritative guidance that provides entities with an additional transition method of applying the new lease standard at the adoption date and recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The FASB has also issued subsequent related ASUs, which detail amendments to the ASU, implementation considerations, narrow-scope improvements and practical expedients. The Company has elected to apply the group of practical expedients which allows the Company to carry forward its identification of contracts that are or contain leases, its historical lease classification and its initial direct costs for existing leases. The Company has also elected to recognize leases with an initial term of 12 months on a straight-line basis without recognizing a right-to-use asset or operating lease liability. The Company is in the process of finalizing the data validation and associated internal controls for its selected global lease management system. We currently estimate that the adoption of this standard will result in the recording of a material right-of-use asset and a material operating lease liability, as well as enhanced disclosures. We do not expect the adoption of this standard to have an impact on our Consolidated Statement of Cash Flows, or earnings from operations in our Consolidated Statements of Income (Loss). We are currently assessing the impact to other income (expense), net, related to unrealized gains or losses on operating lease liabilities denominated in currencies other than the functional currency of the right-of-use asset. In June 2016, the FASB issued authoritative guidance related to the measurement of credit losses on financial instruments. This guidance is effective for fiscal years beginning after December 15, 2019, which will be the Company’s first quarter of fiscal 2021. Early adoption is permitted for fiscal periods beginning after December 15, 2018, which will be the Company’s first quarter of fiscal 2020. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures. In January 2017, the FASB issued authoritative guidance to simplify the testing for goodwill impairment by removing step two from the goodwill testing. Under current guidance, if the fair value of a reporting unit is lower than its carrying amount (step one), an entity would calculate an impairment charge by comparing the implied fair value of goodwill with its carrying amount (step two). The implied fair value of goodwill was calculated by deducting the fair value of the assets and liabilities of the respective reporting unit from the reporting unit’s fair value as determined under step one. This guidance instead provides that an impairment charge should be recognized based on the difference between a reporting unit’s fair value and its carrying value. This guidance also does not require a qualitative test to be performed on reporting units with zero or negative carrying amounts. However, entities need to disclose any reporting units with zero or negative carrying amounts that have goodwill and the amount of goodwill allocated to each. This guidance is effective for fiscal years beginning after December 15, 2019, which will be the Company’s first quarter of fiscal 2021, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements or related disclosures. In August 2017, the FASB issued authoritative guidance to better align the results of hedge accounting with an entity’s risk management activities. This guidance updates the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. In October 2018, the FASB clarified the new hedge accounting guidance by allowing the Secured Overnight Financing Rate to be eligible as a U.S. benchmark interest rate for purposes of applying hedge accounting. This guidance is effective for fiscal years beginning after December 15, 2018, which will be the Company’s first quarter of fiscal 2020, and requires a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, with early adoption permitted. The updated presentation and disclosure guidance is required only on a prospective basis. The adoption of this guidance in fiscal 2020 is expected to decrease retained earnings and increase accumulated other comprehensive income (loss) by approximately $2.0 million . Approximately $1.4 million of this gain will be recognized in cost of product sales over the following 12 months, on a pre-tax basis. In August 2018, the FASB issued authoritative guidance to modify the disclosure requirements on fair value measurements. This guidance is effective for fiscal years beginning after December 15, 2019, which will be the Company’s first quarter of fiscal 2021, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its related disclosures. In August 2018, the FASB issued authoritative guidance to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This guidance is effective for fiscal years beginning after December 15, 2020, which will be the Company’s first quarter of fiscal 2022, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its related disclosures. In August 2018, the FASB issued authoritative guidance to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance provides criteria for determining which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The capitalized implementation costs are required to be expensed over the term of the hosting arrangement. The guidance also clarifies the presentation requirements for reporting such costs in the entity’s financial statements. This guidance is effective for fiscal years beginning after December 15, 2019, which will be the Company’s first quarter of fiscal 2021, 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. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Feb. 02, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable is summarized as follows (in thousands): Feb 2, 2019 Feb 3, 2018 Trade $ 314,651 $ 290,478 Royalty 5,992 5,504 Other 9,892 13,233 330,535 309,215 Less allowances: Doubtful accounts 8,540 13,478 Markdowns 1 — 10,777 Sales returns 1 — 24,964 8,540 49,219 $ 321,995 $ 259,996 ______________________________________________________________________ 1 In fiscal 2018, the accounts receivable allowance included allowances for doubtful accounts, wholesale sales returns and wholesale markdowns. In accordance with the new revenue recognition standard adopted in fiscal 2019, wholesale sales returns and wholesale markdowns have been included in accrued expenses. Retail sales returns allowances are included in accrued expenses. 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 Asia and the Americas, royalty receivables relating to its licensing operations, credit card and retail concession receivables related to its retail businesses 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. |
Inventories
Inventories | 12 Months Ended |
Feb. 02, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in thousands): Feb 2, 2019 Feb 3, 2018 Raw materials $ 881 $ 604 Work in progress 162 16 Finished goods 467,854 427,684 $ 468,897 $ 428,304 The above balances include an allowance to write down inventories to the lower of cost or net realizable value of $31.8 million and $30.8 million as of February 2, 2019 and February 3, 2018 , respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Feb. 02, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment is summarized as follows (in thousands): Feb 2, 2019 Feb 3, 2018 Land, buildings and improvements $ 52,039 $ 54,035 Leasehold improvements 387,802 380,234 Furniture, fixtures and equipment 410,518 389,393 Construction in progress 18,844 16,555 Assets under capital leases 19,069 19,560 888,272 859,777 Less accumulated depreciation and amortization 572,714 565,523 $ 315,558 $ 294,254 During fiscal 2019 and 2018, the Company entered into capital leases related primarily to computer hardware and software. During fiscal 2018, the Company entered into a capital lease for equipment to be used in its European distribution center in the Netherlands. The accumulated depreciation and amortization related to assets under capital leases was approximately $3.1 million and $0.9 million as of February 2, 2019 and February 3, 2018 , respectively, and was included in depreciation expense when recognized. See Note 8 for more information regarding the related capital lease obligations. Construction in progress represents the costs associated with the construction in progress of leasehold improvements to be used in the Company’s operations, primarily for new and remodeled stores in retail operations. Impairment The Company recorded asset impairment charges of $6.9 million , $8.5 million and $34.4 million for fiscal 2019 , fiscal 2018 and fiscal 2017 , respectively. The asset impairment charges related primarily to the impairment of certain retail locations resulting from under-performance and expected store closures during each of the respective periods. Impairments to long-lived assets are summarized as follows (in thousands): Feb 2, 2019 Feb 3, 2018 Aggregate carrying value of long-lived assets impaired $ 7,111 $ 8,728 Less asset impairment charges 6,939 8,479 Aggregate remaining fair value of long-lived assets impaired $ 172 $ 249 The Company’s impairment evaluations included testing of 128 retail locations and 233 retail locations during fiscal 2019 and fiscal 2018 , respectively, which were deemed to have impairment indicators. The Company concluded that 35 retail locations and 99 retail locations, respectively, were determined to be impaired, as the carrying amounts of the assets exceeded their estimated fair values (determined based on discounted cash flows) at each of the respective dates. Refer to Note 1 for a description of other assumptions that management considers in estimating the future discounted cash flows. 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Feb. 02, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill activity is summarized by business segment as follows (in thousands): Americas Retail Americas Wholesale Europe Asia Total Goodwill balance at January 28, 2017 $ 1,729 $ 9,966 $ 21,472 $ 933 $ 34,100 Adjustments: Acquisition — — — 566 566 Translation adjustments 36 6 3,653 120 3,815 Goodwill balance at February 3, 2018 1,765 9,972 25,125 1,619 38,481 Adjustments: Acquisition — — 857 — 857 Translation adjustments (34 ) (6 ) (2,120 ) (106 ) (2,266 ) Goodwill balance at February 2, 2019 $ 1,731 $ 9,966 $ 23,862 $ 1,513 $ 37,072 The Company has no accumulated impairment related to goodwill. From time-to-time, the Company may acquire certain retail locations from its wholesale partners which may result in the recognition of goodwill or other intangible assets. During fiscal 2019, the Company recognized goodwill of approximately $0.9 million related to the acquisition of 10 retail locations from one of its European wholesale partners. During fiscal 2018, the Company recognized goodwill of approximately $0.6 million related to the acquisition of 14 retail locations from three of its Asian wholesale partners. Other intangible assets as of February 2, 2019 consisted primarily of lease and licensee acquisition costs related to European acquisitions. Gross intangible assets were $34.2 million and $33.6 million as of February 2, 2019 and February 3, 2018 , respectively. The accumulated amortization of intangible assets with finite useful lives was $27.3 million and $27.6 million for the years ended February 2, 2019 and February 3, 2018 , respectively. For these assets, amortization expense over the next five years is expected to be approximately $1.7 million in fiscal 2020 , $1.3 million in fiscal 2021 , $1.0 million in fiscal 2022 , $0.8 million in fiscal 2023 , $0.5 million in fiscal 2024 and $1.6 million thereafter. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Feb. 02, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses are summarized as follows (in thousands): Feb 2, 2019 Feb 3, 2018 Accrued compensation and benefits $ 64,543 $ 73,815 Professional and legal fees 57,401 14,281 Allowance for sales returns 1 33,217 2,917 Sales and use taxes, property taxes and other indirect taxes 32,777 33,390 Allowance for markdowns 1 12,121 — Accrued rent 9,000 8,039 Deferred royalties and other revenue 8,260 7,273 Loyalty programs 5,728 3,816 Construction costs 5,408 3,428 Gift cards 5,376 5,213 Income taxes 4,362 5,186 Advertising 1,503 9,677 Derivative financial instruments 77 16,487 Share repurchase — 6,033 Other 12,619 11,007 $ 252,392 $ 200,562 ______________________________________________________________________ 1 In fiscal 2018, the allowances for doubtful accounts, wholesale sales returns and wholesale markdowns were included in accounts receivable. In fiscal 2019, as a result of the implementation of the revenue recognition guidance, the wholesale sales returns and wholesale markdowns have been included in accrued expenses. |
Borrowings and Capital Lease Ob
Borrowings and Capital Lease Obligations | 12 Months Ended |
Feb. 02, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings and Capital Lease Obligations | Borrowings and Capital Lease Obligations Borrowings and capital lease obligations are summarized as follows (in thousands): Feb 2, 2019 Feb 3, 2018 Mortgage debt, maturing monthly through January 2026 $ 19,738 $ 20,323 Capital lease obligations 16,702 18,589 Other 2,887 3,129 39,327 42,041 Less current installments 4,315 2,845 Long-term debt and capital lease obligations $ 35,012 $ 39,196 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 February 2, 2019 , outstanding borrowings under the Mortgage Debt , net of debt issuance costs of $ 0.1 million , were $ 19.7 million . At February 3, 2018 , outstanding borrowings under the Mortgage Debt, net of debt issuance costs of $ 0.1 million , were $ 20.3 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, short term investment balances and availability under borrowing arrangements 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 asset was approximately $ 1.0 million and $1.5 million as of February 2, 2019 and February 3, 2018 , respectively. Capital Lease Obligations During fiscal 2019 and 2018, the Company entered into capital leases of approximately $ 1.2 million and $1.5 million , respectively, related primarily to computer hardware and software. As of February 2, 2019 and February 3, 2018 , this capital lease obligation was $ 2.0 million and $1.3 million , respectively. During fiscal 2018, the Company began the relocation of its European distribution center to the Netherlands. As a result, the Company entered into a capital lease of $ 17.0 million for equipment used in the new facility. The capital lease primarily provides for monthly minimum lease payments through May 2027 with an effective interest rate of approximately 6% . As of February 2, 2019 and February 3, 2018 , the capital lease obligation was $ 14.7 million and $17.3 million , respectively. 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 and inventory as of February 2, 2019 , the Company could have borrowed up to $127 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 February 2, 2019 , the Company had $2.0 million in outstanding standby letters of credit, no 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 generally if borrowings exceed 80% of the borrowing base. 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 committed and uncommitted borrowing agreements, primarily for working capital purposes, with various banks in Europe. Some of these agreements include certain equity-based financial covenants. As of February 2, 2019 , the Company could have borrowed up to $144 million under these agreements. As of February 2, 2019 , the Company had no outstanding borrowings or outstanding documentary letters of credit under these agreements. The agreements are denominated primarily in euros and provide for annual interest rates ranging from 1.1% to 4.6% . Other From time-to-time, the Company will obtain other financing in foreign countries for working capital to finance its local operations. Subsequent to February 2, 2019, the Company, through its China subsidiary, entered into a short-term uncommitted bank borrowing agreement, primarily for working capital purposes. The multicurrency borrowing agreement provides for borrowing up to $20 million . Maturities of the Company’s debt and capital lease obligations as of February 2, 2019 are as follows (in thousands): Debt Capital Lease Total Fiscal 2020 $ 2,479 $ 1,847 $ 4,326 Fiscal 2021 1,660 2,014 3,674 Fiscal 2022 659 2,042 2,701 Fiscal 2023 682 2,017 2,699 Fiscal 2024 764 1,984 2,748 Thereafter 16,459 6,798 23,257 Total principal payments 22,703 16,702 39,405 Less unamortized debt issuance costs 78 — 78 Total debt and capital lease obligations $ 22,625 $ 16,702 $ 39,327 |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Feb. 02, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges During the first quarter of fiscal 2017, the Company implemented a global cost reduction and restructuring plan to better align its global cost and organizational structure with its current strategic initiatives. This plan included 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 related primarily to cash-based severance costs of $6.1 million during fiscal 2017. There were no restructuring charges incurred during fiscal 2018. The Company does not expect significant future cash-based severance charges to be incurred under this plan as the actions were completed during fiscal 2017. As of February 3, 2018, there were no amounts included in accrued expenses related to these restructuring activities as the Company completed payments for the remaining anticipated costs during fiscal 2018. At January 28, 2017, the Company had a balance of approximately $0.2 million in accrued expenses related to these restructuring activities. The following table summarizes restructuring activities related primarily to severance during fiscal 2017 and fiscal 2018 (in thousands): Total Balance at January 30, 2016 $ — Charges to operations 6,083 Cash payments (6,003 ) Foreign currency and other adjustments 100 Balance at January 28, 2017 $ 180 Cash payments (124 ) Foreign currency and other adjustments (56 ) Balance at February 3, 2018 $ — During fiscal 2017, 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. The exit tax charge has not been finalized with the local authorities and actual amounts could differ significantly from these estimates as negotiations are completed. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 12 Months Ended |
Feb. 02, 2019 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss), net of related income taxes, for fiscal 2019 , fiscal 2018 and fiscal 2017 are as follows (in thousands): 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 (575 ) 1,059 (1 ) (1,162 ) (679 ) Reclassification to net earnings for (gains) losses realized — (2,911 ) 16 239 (2,656 ) Net other comprehensive income (loss) (575 ) (1,852 ) 15 (923 ) (3,335 ) Balance at January 28, 2017 $ (158,227 ) $ 5,400 $ — $ (8,562 ) $ (161,389 ) Gains (losses) arising during the period 91,178 (20,408 ) — (1,999 ) 68,771 Reclassification to net loss for losses realized — 414 — 352 766 Net other comprehensive income (loss) 91,178 (19,994 ) — (1,647 ) 69,537 Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance 1 — 225 — (1,435 ) (1,210 ) Balance at February 3, 2018 $ (67,049 ) $ (14,369 ) $ — $ (11,644 ) $ (93,062 ) Gains (losses) arising during the period (52,497 ) 10,962 — 1,516 (40,019 ) Reclassification to net earnings for losses realized — 6,406 — 496 6,902 Net other comprehensive income (loss) (52,497 ) 17,368 — 2,012 (33,117 ) Balance at February 2, 2019 $ (119,546 ) $ 2,999 $ — $ (9,632 ) $ (126,179 ) ______________________________________________________________________ 1 During the fourth quarter of fiscal 2018, the Company early adopted authoritative guidance which addresses certain stranded income tax effects in accumulated other comprehensive loss resulting from the Tax Reform enacted in December 2017. As a result, the Company recorded a cumulative adjustment to increase retained earnings by $1.2 million with a corresponding reduction to accumulated other comprehensive loss related to the Company’s Supplemental Executive Retirement Plan and its interest rate swap designated as a cash flow hedge based in the U.S. Details on reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss) during fiscal 2019 , fiscal 2018 and fiscal 2017 are as follows (in thousands): Location of (Gain) Loss Reclassified from Accumulated OCI into Earnings (Loss) Year Ended Year Ended Year Ended Derivative financial instruments designated as cash flow hedges: Foreign exchange currency contracts $ 7,020 $ (14 ) $ (3,518 ) Cost of product sales Foreign exchange currency contracts 201 583 (301 ) Other income (expense) Interest rate swap (103 ) 87 216 Interest expense Less income tax effect (712 ) (242 ) 692 Income tax expense 6,406 414 (2,911 ) Marketable securities: Available-for-sale securities — — 25 Other income (expense) Less income tax effect — — (9 ) Income tax expense — — 16 Defined benefit plans: Net actuarial loss amortization 600 462 341 Other income (expense) 1 Prior service credit amortization (28 ) (27 ) (28 ) Other income (expense) 1 Less income tax effect (76 ) (83 ) (74 ) Income tax expense 496 352 239 Total reclassifications to net earnings (loss) for (gains) losses realized during the period $ 6,902 $ 766 $ (2,656 ) ______________________________________________________________________ 1 During fiscal 2019, in accordance with the adoption of the guidance related to the presentation of net periodic pension costs, reclassification of these items are now included in other income (expense). Refer to Note 2 for further information. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Changes in Tax Law In December 2017, the 2017 Tax Cuts and Jobs Act in the U.S. (referred to herein as the “Tax Reform”) , was enacted into law. The Tax Reform includes significant changes to the U.S. corporate income tax system, including a reduction in the U.S. federal corporate income tax rate from 35% to 21% and a one-time mandatory transition tax on accumulated foreign earnings. The Tax Reform also established new tax laws that were effective beginning in calendar 2018, including but not limited to (i) a new provision designed to tax global intangible low-taxed income (“GILTI”), (ii) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries, (iii) a limitation on deductible interest expense and (iv) limitations on the deductibility of certain executive compensation. The Securities and Exchange Commission (“SEC”) issued authoritative guidance which addresses accounting for the impact of the Tax Reform. This guidance provides a measurement period, which should not extend beyond one year from the enactment date, during which the Company may finalize the accounting for the impacts of the Tax Reform, and allows for the Company to record provisional estimates of such amounts. As a result, during the fourth quarter of fiscal 2018, the Company recorded estimated additional income tax expense of $47.9 million . This is comprised of a provisional charge of $24.9 million for the re-measurement of U.S. deferred tax assets and a provisional charge of $23.0 million for the estimated effects of the transitional tax on the deemed repatriation of foreign earnings . During the third quarter of fiscal 2019, the Company completed the preparation of its U.S. federal tax return for fiscal 2018 and concluded, based on the additional information that had become available, that no transition tax was due with respect to the Tax Reform. As a result, during the third quarter of fiscal 2019, the Company reversed a portion of provisional amounts initially recorded during the three months ended February 3, 2018 and recorded a benefit of $19.6 million . During the fourth quarter of fiscal 2019, the Company concluded, based on additional regulatory guidance issued during the quarter, related to the Tax Reform, that the Company would owe transition taxes if proposed legislation that clarifies existing tax regulation with respect to the dividends received deduction calculation is passed into law. As a result, during the three months ended February 2, 2019, the Company recorded additional charges due to the Tax Reform of $25.8 million . The Company has historically considered the undistributed earnings of its foreign subsidiaries to be indefinitely reinvested. As a result of the Tax Reform, the Company had a substantial amount of previously taxed earnings that could be distributed to the U.S. without additional U.S. taxation. The Company continues to evaluate its plans for reinvestment or repatriation of unremitted foreign earnings and regularly review its cash positions and determination of permanent reinvestment of foreign earnings. If the Company determines that all or a portion of such foreign earnings are no longer indefinitely reinvested, it may be subject to additional foreign withholding taxes and U.S. state income taxes, beyond the Tax Reform’s one-time transition tax. The Company intends to indefinitely reinvest the remaining earnings from the Company’s foreign subsidiaries for which a deferred tax liability has not already been recorded . The Company is subject to a tax on global intangible low-taxed income (“GILTI”). GILTI is a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. Companies subject to GILTI have the option to account for the tax as a period cost if and when incurred, or factor such amounts into the measurement of deferred taxes. The Company has elected to account for GILTI as a period cost. For the year ended February 2, 2019, the Company had no net tax provision related to GILTI tax. During the fourth quarter of fiscal 2018, the Company also early adopted authoritative guidance which addresses certain stranded income tax effects in accumulated other comprehensive loss resulting from the Tax Reform. As a result, the Company recorded a cumulative adjustment of $1.2 million to reclassify the stranded income tax effects from the Tax Reform that were included in accumulated other comprehensive income (loss) to retained earnings. Income Tax Expense Income tax expense (benefit) is summarized as follows (in thousands): Year Ended Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Federal: Current $ 16,495 $ 34,181 $ 8,212 Deferred 4,543 21,595 (636 ) State: Current 1,408 1,903 2,537 Deferred 1,532 217 (1,000 ) Foreign: Current 3,385 7,333 17,055 Deferred 2,179 8,943 2,044 Total $ 29,542 $ 74,172 $ 28,212 Actual income tax expense differs from expected income tax expense obtained by applying the statutory federal income tax rate to earnings before income taxes as follows: Year Ended Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Computed “expected” tax rate 21.0 % 33.7 % 35.0 % State taxes, net of federal benefit 1.1 % 2.4 % 1.9 % Non-U.S. tax expense higher (lower) than federal statutory tax rate 1 24.2 % (10.5 %) (2.9 %) Tax Reform - repatriation tax adjustment 2,5 (41.8 %) 32.8 % — % Tax Reform - deferred tax adjustment — % 35.4 % — % Cumulative valuation reserve 3 — % — % 12.7 % Valuation reserve 4 0.5 % 12.9 % 10.9 % Unrecognized tax liabilities (benefits) 5 51.3 % 0.8 % 1.0 % Share-based compensation 6 0.2 % 1.5 % — % Net tax settlements — % — % 3.5 % Sale of minority interest investment — % — % (4.3 %) Estimated exit tax charge — % — % 3.5 % Prior year tax adjustments 0.3 % 0.7 % (4.4 %) Non-deductible permanent differences 16.5 % (4.1 %) (4.3 %) Foreign derived intangible income (10.2 %) — % — % Other 0.1 % — % — % Effective tax rate 63.2 % 105.6 % 52.6 % ______________________________________________________________________ 1 The jurisdictional location of pre-tax income (loss) may represent a significant component of the Company’s effective tax rate as income tax rates outside the U.S. are generally lower than the U.S. statutory income tax rate. Furthermore, the impact of changes in the jurisdictional location of pre-tax income (loss) on the Company’s effective tax rate will be greater at lower levels of consolidated pre-tax income (loss). These amounts exclude the impact of net changes in valuation allowances, audit and other adjustments related to the Company’s non-U.S. operations, as they are reported separately in the appropriate corresponding line items in the table above. The impact on the Company’s effective tax rate was primarily due to lower U.S. taxes resulting from the Tax Reform and the mix of earnings in foreign jurisdictions. 2 During fiscal 2018, the Company recognized additional tax expense resulting from the enactment of the Tax Reform to account for the estimated effects of the transitional tax on the deemed repatriation of foreign earnings and reduced deferred tax assets due to lower future U.S. corporate tax rates. During the third quarter of fiscal 2019, the Company completed the preparation of its U.S. federal tax return for fiscal 2018 and concluded, based on the additional information that had become available, that no transition tax was due with respect to the Tax Reform. As a result, during the third quarter of fiscal 2019, the Company reversed a portion of provisional amounts initially recorded during the three months ended February 3, 2018 and recorded a benefit of $19.6 million . 3 Amounts represent valuation reserves resulting from jurisdictions where there have been cumulative net operating losses, limiting the Company’s ability to consider other subjective evidence to continue to recognize the existing deferred tax assets. 4 Amounts relate primarily to valuation reserves on non-cumulative net operating losses or other deferred tax assets arising during the respective period. 5 During the fourth quarter of fiscal 2019, the Company concluded based on additional regulatory guidance issued during the quarter related to the Tax Reform, that the Company would owe transition taxes if proposed legislation that clarifies existing tax regulation with respect to the dividends received deduction calculation is passed into law. As a result, during the three months ended February 2, 2019, the Company recorded additional charges due to the Tax Reform of $25.8 million as an uncertain tax position. 6 During fiscal 2018, the Company adopted authoritative guidance which requires all income tax effects of stock awards (resulting from an increase or decrease in the fair value of an award from grant date to the vesting date) to be recognized in the income statement when the awards vest or are settled. This is a change from previous guidance that required such activity to be recorded in paid-in capital within stockholders’ equity. Total income tax expense (benefit) is allocated as follows (in thousands): Year Ended Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Operations 1 $ 29,542 $ 74,172 $ 28,212 Stockholders’ equity 1 3,006 (3,173 ) 1,782 Total income tax expense $ 32,548 $ 70,999 $ 29,994 ______________________________________________________________________ 1 During fiscal 2018, the Company adopted authoritative guidance which requires all income tax effects of stock awards (resulting from an increase or decrease in the fair value of an award from grant date to the vesting date) to be recognized in the income statement when the awards vest or are settled. This is a change from previous guidance that required such activity to be recorded in paid-in capital within stockholders’ equity. As a result, the Company recorded tax shortfalls of approximately $0.1 million and $1.3 million in the Company’s income tax expense during fiscal 2019 and 2018, respectively. The tax effects of the components of other comprehensive income (loss) are allocated as follows (in thousands): Year Ended Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Derivative financial instruments designated as cash flow hedges $ 2,402 $ (2,738 ) $ (864 ) Marketable securities — — 6 Defined benefit plans 604 (435 ) (21 ) Total income tax expense (benefit) 1 $ 3,006 $ (3,173 ) $ (879 ) ______________________________________________________________________ 1 During the fourth quarter of fiscal 2018, the Company early adopted authoritative guidance which addresses certain stranded income tax effects in accumulated other comprehensive loss resulting from the Tax Reform enacted in December 2017. As a result, the Company recorded a cumulative adjustment to increase retained earnings by $1.2 million with a corresponding reduction to accumulated other comprehensive loss related to the Company’s Supplemental Executive Retirement Plan and its interest rate swap designated as a cash flow hedge based in the U.S. The impact from this reclassification on accumulated other comprehensive income (loss) has been excluded from the amounts provided in this table. Total earnings before income tax expense and noncontrolling interests are comprised of the following (in thousands): Year Ended Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Domestic operations $ 97,885 $ 39,112 $ 32,944 Foreign operations (51,177 ) 31,159 20,666 Earnings before income tax expense and noncontrolling interests $ 46,708 $ 70,271 $ 53,610 Deferred Taxes The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities as of February 2, 2019 and February 3, 2018 are presented below (in thousands): Feb 2, 2019 Feb 3, 2018 Deferred tax assets: Net operating losses $ 23,212 $ 19,859 Defined benefit plans 12,883 13,155 Deferred compensation 9,823 10,721 Rent expense 7,114 7,651 Fixed asset basis 6,638 10,704 Deferred income 4,373 7,141 Accrued bonus 2,208 251 Account receivable/return reserve 2,009 1,926 Bad debt reserve 1,933 2,529 Uniform capitalization 1,419 974 Inventory valuation 1,339 3,005 Lease incentives 1,337 1,814 Other 18,883 25,521 Total deferred tax assets 93,171 105,251 Deferred tax liabilities: Goodwill amortization (2,267 ) (2,303 ) Excess of tax over book depreciation/amortization (101 ) (135 ) Other (769 ) (4,517 ) Valuation allowance (32,810 ) (32,601 ) Net deferred tax assets 1 $ 57,224 $ 65,695 ______________________________________________________________________ 1 As of February 2, 2019 , there were no amounts included for net deferred tax liabilities recorded in other long-term liabilities in the Company’s consolidated balance sheet. There were $2.7 million net deferred tax liabilities recorded in other long-term liabilities in the Company’s consolidated balance sheet at February 3, 2018 . Based on the historical earnings of the Company and projections of future taxable earnings in certain jurisdictions, management believes it is more likely than not that the results of operations will not generate sufficient taxable earnings to realize certain net deferred tax assets. Therefore, the Company has recorded a valuation allowance of $32.8 million , which is an in crease of $0.2 million from the prior year. As of February 2, 2019 , certain of the Company’s operations had net operating loss carryforwards of $90.3 million . These are comprised of $27.5 million of operating loss carryforwards that have an unlimited carryforward life, $62.8 million of foreign operating loss carryforwards that expire between fiscal 2020 and fiscal 2038 . Based on the historical earnings of these operations, management believes that it is more likely than not that some of the operations will not generate sufficient earnings to utilize all of the net operating loss. As of February 2, 2019 and February 3, 2018 , the Company had a valuation allowance of $22.9 million and $20.4 million , respectively, related to its net operating loss carryforwards. Unrecognized Tax Benefit The Company and its subsidiaries are subject to U.S. federal and foreign income tax as well as income tax of multiple state and foreign local jurisdictions. 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. Although the Company has substantially concluded all U.S. federal, foreign, state and foreign local income tax matters for years through fiscal 2013 , as of February 2, 2019 , several income tax audits were underway in multiple jurisdictions for various periods after fiscal 2013 . The Company does not believe that the resolution of open matters will have a material effect on the Company’s financial position or liquidity. The Company accrues an amount for its estimate of additional income tax liability which the Company, more likely than not, will 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. A reconciliation of the beginning and ending amount of gross unrecognized tax benefit (excluding interest and penalties) is as follows (in thousands): Year Ended Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Beginning balance $ 16,771 $ 12,983 $ 12,585 Additions: Tax positions related to the prior year 25,822 3,129 667 Tax positions related to the current year 267 222 106 Reductions: Tax positions related to the prior year (2,934 ) (355 ) (286 ) Tax positions related to the current year (449 ) (303 ) — Settlements — — — Expiration of statutes of limitations — (206 ) — Foreign currency translation (726 ) 1,301 (89 ) Ending balance $ 38,751 $ 16,771 $ 12,983 The amount of unrecognized tax benefit as of February 2, 2019 includes $38.3 million (net of federal benefit on state issues) which, if ultimately recognized, may reduce our future annual effective tax rate. As of February 2, 2019 and February 3, 2018 , the Company had $41.4 million and $19.0 million , respectively, of aggregate accruals for uncertain tax positions, including penalties and interest. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company included interest and penalties related to uncertain tax positions of $0.5 million , $0.5 million and $0.2 million in net income tax expense for fiscal 2019 , fiscal 2018 and fiscal 2017 , respectively. Total interest and penalties related to uncertain tax positions was $2.6 million and $2.2 million for the years ended February 2, 2019 and February 3, 2018 , respectively. |
Defined Benefit Plans
Defined Benefit Plans | 12 Months Ended |
Feb. 02, 2019 | |
Defined Benefit Plan [Abstract] | |
Defined Benefit Plans | The Company maintains defined benefit plans for certain employees primarily in the U.S. and Switzerland. In accordance with authoritative guidance for defined benefit pension and other postretirement plans, an asset for a plan’s overfunded status or a liability for a plan’s underfunded status is recognized in the consolidated balance sheets; plan assets and obligations that determine the plan’s funded status are measured as of the end of the Company’s fiscal year; and changes in the funded status of defined benefit postretirement plans are recognized in the year in which they occur. Such changes are reported in other comprehensive income (loss) as a separate component of stockholders’ equity. The Company’s pension obligations and related costs are calculated using actuarial concepts, within the authoritative guidance framework , and are considered Level 3 inputs as defined in Note 20 . The Company uses the corridor approach to amortize unrecognized actuarial gains or losses over the average remaining service life of active participants. The life expectancy, estimated retirement age, discount rate, estimated future compensation and expected return on plan assets are important elements of expense and/or liability measurement. These critical assumptions are evaluated annually which enables expected future payments for benefits to be stated at present value on the measurement date. If actual results are not consistent with actuarial assumptions, the amounts recognized for the defined benefit plans could change significantly. 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. 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 $61.7 million and $64.5 million as of February 2, 2019 and February 3, 2018 , respectively, and were included in other assets in the Company’s consolidated balance sheets. As a result of changes in the value of the insurance policy investments, the Company recorded unrealized gains (losses) of $(1.1) million , $7.7 million and $6.9 million in other income and expense during fiscal 2019 , fiscal 2018 and fiscal 2017 , respectively. The Company assumed a discount rate of approximately 3.8% and 3.5% for the years ended February 2, 2019 and February 3, 2018 , respectively, as part of the actuarial valuation performed to calculate the projected benefit obligation, based on the timing of cash flows expected to be made in the future to the participants, applied to high quality yield curves. The Company also considers recent updates to the mortality tables and mortality improvement scale published by the Society of Actuaries in developing its best estimate of the expected mortality rates for its plan participants. As of February 2, 2019 , accumulated other comprehensive income (loss) included actuarial losses of $0.1 million that are expected to be amortized and recognized as a component of net periodic defined benefit pension cost in fiscal 2020 . Aggregate benefits projected to be paid in the next five fiscal years are approximately $ 1.7 million in fiscal 2020 , $2.9 million in fiscal 2021 , $3.9 million for each year from fiscal 2022 to fiscal 2024 . Aggregate benefits projected to be paid in the five fiscal years following fiscal 2024 amount to $18.3 million . Foreign Pension Plans In certain foreign jurisdictions, primarily in Switzerland, the Company is required to guarantee the returns on Company sponsored defined contribution plans in accordance with local regulations. These plans are typically government-mandated defined contribution plans that provide employees with a minimum investment return, and as such, are treated under pension accounting in accordance with authoritative guidance. The minimum investment return for our Swiss pension plan was 1.00% during calendar 2018 and calendar 2017. Under the Swiss pension 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 February 2, 2019 and February 3, 2018 , actuarial assumptions used by the Company to calculate the projected benefit obligation and the fair value of the plans assets related to its Swiss pension plan included discount rates of 0.70% and 0.60% , respectively, and expected returns on plan assets of 1.20% and 1.40% , respectively. As of February 2, 2019 , accumulated other comprehensive income (loss) included actuarial losses of $0.4 million that are expected to be amortized and recognized as a component of net periodic defined benefit pension cost in fiscal 2020 . The components of net periodic defined benefit pension cost to accumulated comprehensive income (loss) for fiscal 2019 related to the Company’s defined benefit plans are as follows (in thousands): Year Ended February 2, 2019 SERP Foreign Pension Plans Total Service cost $ — $ 3,039 $ 3,039 Interest cost 1,887 225 2,112 Expected return on plan assets — (303 ) (303 ) Net amortization of unrecognized prior service credit — (28 ) (28 ) Net amortization of actuarial losses 187 413 600 Net periodic defined benefit pension cost $ 2,074 $ 3,346 $ 5,420 Unrecognized prior service credit charged to comprehensive income (loss) $ — $ (28 ) $ (28 ) Unrecognized net actuarial loss charged to comprehensive income (loss) 187 413 600 Net actuarial gain (losses) 2,787 (1,054 ) 1,733 Foreign currency and other adjustments — 311 311 Related tax impact (686 ) 82 (604 ) Total periodic defined benefit pension cost and other charges to other comprehensive income (loss) and accumulated other comprehensive income (loss) $ 2,288 $ (276 ) $ 2,012 The components of net periodic defined benefit pension cost to accumulated comprehensive income (loss) for fiscal 2018 related to the Company’s defined benefit plans are as follows (in thousands): Year Ended February 3, 2018 SERP Foreign Pension Total Service cost $ — $ 2,500 $ 2,500 Interest cost 1,844 147 1,991 Expected return on plan assets — (244 ) (244 ) Net amortization of unrecognized prior service credit — (27 ) (27 ) Net amortization of actuarial losses 151 311 462 Net periodic defined benefit pension cost $ 1,995 $ 2,687 $ 4,682 Unrecognized prior service credit charged to comprehensive income (loss) $ — $ (27 ) $ (27 ) Unrecognized net actuarial loss charged to comprehensive income (loss) 151 311 462 Net actuarial losses (1,092 ) (1,156 ) (2,248 ) Foreign currency and other adjustments — (269 ) (269 ) Related tax impact 360 75 435 Total periodic defined benefit pension cost and other charges to other comprehensive income (loss) (581 ) (1,066 ) (1,647 ) Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance 1 (1,435 ) — (1,435 ) Total periodic defined benefit pension cost and other charges to accumulated other comprehensive income (loss) $ (2,016 ) $ (1,066 ) $ (3,082 ) ______________________________________________________________________ 1 During the fourth quarter of fiscal 2018, the Company early adopted authoritative guidance which addresses certain stranded income tax effects in accumulated other comprehensive loss resulting from the Tax Reform enacted in December 2017. As a result, the Company recorded a cumulative adjustment to increase retained earnings by $1.4 million with a corresponding reduction to accumulated other comprehensive loss related to the Company’s SERP. The components of net periodic defined benefit pension cost to accumulated comprehensive income (loss) for fiscal 2017 related to the Company’s defined benefit plans are as follows (in thousands): Year Ended January 28, 2017 SERP Foreign Pension Total Service cost $ — $ 1,544 $ 1,544 Interest cost 1,839 87 1,926 Expected return on plan assets — (185 ) (185 ) Net amortization of unrecognized prior service credit — (28 ) (28 ) Net amortization of actuarial losses 155 186 341 Net periodic defined benefit pension cost $ 1,994 $ 1,604 $ 3,598 Unrecognized prior service credit charged to comprehensive income (loss) $ — $ (28 ) $ (28 ) Unrecognized net actuarial loss charged to comprehensive income (loss) 155 186 341 Net actuarial gains (losses) 63 (1,248 ) (1,185 ) Foreign currency and other adjustments — (72 ) (72 ) Related tax impact (84 ) 105 21 Total periodic defined benefit pension cost and other charges to other comprehensive income (loss) and accumulated other comprehensive income (loss) $ 134 $ (1,057 ) $ (923 ) Included in accumulated other comprehensive income (loss), before tax, as of February 2, 2019 and February 3, 2018 are the following amounts that have not yet been recognized in net periodic defined benefit pension cost (in thousands): Feb 2, 2019 Feb 3, 2018 SERP Foreign Pension Total SERP Foreign Pension Total Unrecognized prior service credit $ — $ (159 ) $ (159 ) $ — $ (113 ) $ (113 ) Unrecognized net actuarial loss 6,480 5,293 11,773 9,454 4,889 14,343 Total included in accumulated other comprehensive loss $ 6,480 $ 5,134 $ 11,614 $ 9,454 $ 4,776 $ 14,230 The following table summarizes the funded status of the Company’s defined benefit plans and the amounts recognized in the Company’s consolidated balance sheets (in thousands): Feb 2, 2019 Feb 3, 2018 SERP Foreign Pension Total SERP Foreign Pension Total Projected benefit obligation $ (52,162 ) $ (31,105 ) $ (83,267 ) $ (54,760 ) $ (26,409 ) $ (81,169 ) Plan assets at fair value 1 — 25,358 25,358 — 21,437 21,437 Net liability 2 $ (52,162 ) $ (5,747 ) $ (57,909 ) $ (54,760 ) $ (4,972 ) $ (59,732 ) ______________________________________________________________________ 1 The SERP is a non-qualified pension plan and hence the insurance policies are not considered to be plan assets. Accordingly, the table above does not include the insurance policies with cash surrender values of $61.7 million and $64.5 million as of February 2, 2019 and February 3, 2018 , respectively. 2 The net liability was included in accrued expenses and other long-term liabilities in the Company’s consolidated balance sheets depending on the expected timing of payments. A reconciliation of the changes in the projected benefit obligation for fiscal 2019 and fiscal 2018 is as follows (in thousands): Projected Benefit Obligation SERP Foreign Pension Total Balance at January 28, 2017 $ 53,521 $ 19,986 $ 73,507 Service cost — 2,500 2,500 Interest cost 1,844 147 1,991 Actuarial (gains) losses 1,092 1,156 2,248 Contributions by plan participants — 2,315 2,315 Payments (1,697 ) (1,373 ) (3,070 ) Foreign currency and other adjustments — 1,678 1,678 Balance at February 3, 2018 $ 54,760 $ 26,409 $ 81,169 Service cost — 3,039 3,039 Interest cost 1,887 225 2,112 Actuarial (gains) losses (2,787 ) 1,054 (1,733 ) Contributions by plan participants — 2,310 2,310 Payments (1,698 ) (1,824 ) (3,522 ) Acquisition — 1,539 1,539 Foreign currency and other adjustments — (1,647 ) (1,647 ) Balance at February 2, 2019 $ 52,162 $ 31,105 $ 83,267 The SERP is a non-qualified pension plan and hence the insurance policies are not considered to be plan assets. Accordingly, the table below does not include the insurance policies with cash surrender values of $61.7 million and $64.5 million as of February 2, 2019 and February 3, 2018 , respectively. A reconciliation of the changes in plan assets for the Foreign Pension Plans for fiscal 2019 and fiscal 2018 is as follows (in thousands): Plan Assets Balance at January 28, 2017 $ 16,305 Actual return on plan assets 244 Contributions by employer 2,575 Contributions by plan participants 2,315 Payments (1,373 ) Foreign currency and other adjustments 1,371 Balance at February 3, 2018 $ 21,437 Actual return on plan assets 252 Contributions by employer 3,308 Contributions by plan participants 2,310 Payments (1,824 ) Acquisition 1,186 Foreign currency and other adjustments (1,311 ) Balance at February 2, 2019 $ 25,358 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Feb. 02, 2019 | |
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 February 2, 2019 with expiration dates in calendar years 2020 and 2021 . The Company, through a wholly-owned Canadian subsidiary, leases warehouse and administrative facilities in Montreal, Quebec from a partnership affiliated with the Marciano Trusts. During fiscal 2019, the Company exercised an option to extend the lease term through August 2021 . All other terms of the existing lease remain in full force and effect . The Company, through a French subsidiary, leases a showroom and office space located in Paris, France from an entity that is owned in part by an affiliate of the Marciano Trusts. Due to excess capacity, the lease was amended to reduce the square footage by approximately 5,100 square feet to 16,000 square feet during fiscal 2018 . The amendment also provided for a corresponding reduction in aggregate rent, common area maintenance charges and property tax expense due to the lower square footage . All other terms of the existing lease remain in full force and effect . The Company leases an approximately 140,000 square foot parking lot located adjacent to the Company’s corporate headquarters from a partnership affiliated with the Marciano Trusts. Aggregate rent, common area maintenance charges and property tax expense recorded under these related party leases for fiscal 2019 , fiscal 2018 and fiscal 2017 were $5.0 million , $4.9 million and $5.0 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. Refer to Note 14 for more information on lease commitments. Aircraft Arrangements The Company periodically charters aircraft owned by entities affiliated with the Marciano Trusts (the “Aircraft Entities”) through informal arrangements with the Aircraft Entities and independent third-party management companies contracted by the Aircraft Entities to manage its aircraft. The total fees paid under these arrangements for fiscal 2019 , fiscal 2018 and fiscal 2017 were approximately $1.0 million , $1.1 million and $0.9 million , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 02, 2019 | |
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 January 2039 . 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 4% to 20% , 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 35% of annual sales volume. Some leases include lease incentives, rent abatements and fixed rent escalations, which are amortized and recorded over the lease term on a straight-line basis. The Company also leases some of its equipment under operating lease agreements expiring at various dates through May 2028 . As discussed in further detail in Note 8 , the Company leases equipment as well as computer hardware and software under capital lease obligations. Future minimum property and equipment lease payments under capital leases and non-cancelable operating leases as of February 2, 2019 are as follows (in thousands): Operating Leases Capital Lease Non-Related Parties Related Parties Total Fiscal 2020 $ 2,966 $ 216,037 $ 4,897 $ 223,900 Fiscal 2021 2,966 181,577 2,492 187,035 Fiscal 2022 2,765 155,700 260 158,725 Fiscal 2023 2,665 129,734 — 132,399 Fiscal 2024 2,535 100,127 — 102,662 Thereafter 7,531 217,832 — 225,363 Total minimum lease payments $ 21,428 $ 1,001,007 $ 7,649 $ 1,030,084 Less interest (4,726 ) Capital lease obligations 16,702 Less current portion (1,847 ) Long-term capital lease obligations $ 14,855 Rental expense for all property and equipment operating leases during fiscal 2019 , fiscal 2018 and fiscal 2017 aggregated $292.1 million , $272.3 million and $263.1 million , respectively, including percentage rent of $67.2 million , $61.2 million and $53.0 million , respectively. Purchase Commitments Inventory purchase commitments as of February 2, 2019 were $208.6 million . These purchase commitments can be impacted by various factors, including the scheduling of market weeks, the timing of issuing orders, the timing of the shipment of orders and currency fluctuations. Incentive Bonuses Certain officers and key employees of the Company are eligible to receive annual cash incentive bonuses based on the achievement of certain performance criteria. These bonuses are based on performance measures such as earnings from operations of the Company or particular segments thereof, as well as other objective and subjective criteria as determined by the Compensation Committee of the Board of Directors. Investment Commitments As of February 2, 2019 , the Company had an unfunded commitment to invest € 3.6 million ($ 4.2 million ) in a private equity fund. Refer to Note 20 for further information. Legal and Other Proceedings The Company is involved in legal and other proceedings, arising both in the ordinary course of business and otherwise, including the proceedings described below as well as various other claims and other matters incidental to the Company’s business. Unless otherwise stated, the resolution of any particular proceeding is not currently expected to have a material adverse impact on the Company’s financial position or results of operations. Even if such an impact could be material, we may not be able to estimate the reasonably possible loss or range of loss until developments in the proceedings have provided sufficient information to support an assessment. 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 were subsequently 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 moved to 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 disagreed with the Court’s decision and appealed the ruling. On August 31, 2016, the Court of Appeal for the China matter issued a decision in favor of the Company, rejecting all of the plaintiff’s claims. In March 2017, the plaintiff petitioned the China Supreme Court for a retrial of the matter. On January 30, 2015, the Court of Paris ruled in favor of the Company in the France matter, 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. In April 2018, the parties entered into an agreement to settle all pending worldwide intellectual property litigation and trademark office matters between the parties and their subsidiaries, including the previously active litigation matters in Italy, China and France. As part of the settlement, the parties agreed on the use of various design elements by each party on a go-forward basis. The settlement did not have a significant impact on the Company’s financial results, and the terms of the settlement are not expected to have a negative impact on the Company’s business operations going forward. The Company has received customs tax assessment notices from the Italian Customs Agency (“ICA”) 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 disagreed with the ICA’s positions and therefore filed appeals with the Milan First Degree Tax Court (“MFDTC”). Those appeals were split into a number of different cases that were then heard by different sections of the MFDTC. The MFDTC ruled in favor of the Company on all of these appeals. The ICA subsequently appealed €9.7 million ( $11.1 million ) of these favorable MFDTC judgments with the Appeals Court. To date, €8.4 million ( $9.6 million ) of the initial appeals have been decided in favor of the Company and €1.3 million ( $1.5 million ) have been decided in favor of the ICA . The Company believes that the unfavorable Appeals Court ruling is incorrect and inconsistent with the prior rulings on similar matters by both the MFDTC and other judges within the Appeals Court, and plans to appeal the decision to the Supreme Court. The ICA has appealed most of the favorable Appeals Court rulings to the Supreme Court. There can be no assurances the Company will be successful in the remaining appeals. 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 this matter, it is unable to predict with certainty whether or not these efforts will ultimately be successful or whether the outcome will have a material impact on the Company’s financial position or results of operations. On June 6, 2017, the European Commission notified the Company that it had initiated proceedings to investigate whether certain of the Company’s practices and agreements concerning the distribution of apparel and accessories within the European Union breached European Union competition rules related to cross-border transactions, internet sales limitations and resale price restrictions. The Company cooperated with the European Commission, including through responses to requests for information and through changes to certain business practices and agreements. A broad range of remedies was potentially available to the European Commission, including imposing a fine and/or injunctive relief prohibiting or restricting certain business practices. The Company made certain changes to its business practices and agreements in response to, and early in the course of, these proceedings, and the Company believes that such changes and any related modifications have not had, and will not have, a material impact on its ongoing business operations within the European Union. During the third quarter of fiscal 2019, the Company recognized an estimated charge of €37.0 million ( $42.4 million ) related to a fine expected to be imposed on the Company by the European Commission related to these proceedings. In December of fiscal 2019, the European Commission published its findings and imposed a fine of €39.8 million ( $45.6 million ), which the Company subsequently paid during the first quarter of fiscal 2020. As a result, the Company recorded additional charges of € 2.8 million ( $3.2 million ) during the three months ended February 2, 2019. Redeemable Noncontrolling Interests The Company is 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 consolidated balance sheet. During fiscal 2017, the Company and the noncontrolling interest holder increased their capital contributions by $ 1.7 million , of which $ 1.0 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 $1.4 million and $1.6 million as of February 2, 2019 and February 3, 2018 , respectively. The Company is party to a put arrangement with respect to the common securities that represent the remaining noncontrolling interest for its majority-owned subsidiary, Guess? CIS, LLC (“Guess CIS”), which was established through a majority-owned joint venture during fiscal 2016. The put arrangement for Guess CIS, representing 30% 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 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 consolidated balance sheet. During fiscal 2016, the Company made an initial contribution of $2.0 million . During fiscal 2017, 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. During fiscal 2018, the Company and the noncontrolling interest holder made an additional capital contribution totaling $3.2 million , of which $2.2 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 carrying value of the redeemable noncontrolling interest related to Guess CIS was $3.5 million and $4.0 million as of February 2, 2019 and February 3, 2018 , respectively. The Company was previously party to a put arrangement in connection with its now wholly-owned subsidiary, Guess Sud SAS (“Guess Sud”). Under the terms of this put arrangement, which represented 40% of the total outstanding interest of that subsidiary, the noncontrolling interest holder had the option to exercise the put arrangement at its discretion by providing written notice to the Company any time after January 30, 2012 . The redemption value of the put arrangement was determined based on a method which approximated fair value. During fiscal 2017, the Company acquired the remaining 40% interest in Guess Sud for $4.4 million . A reconciliation of the total carrying amount of redeemable noncontrolling interests for fiscal 2019 and fiscal 2018 is as follows (in thousands): Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Beginning balance $ 5,590 $ 4,452 Foreign currency translation adjustment (737 ) 187 Noncontrolling interest capital contribution — 951 Ending balance $ 4,853 $ 5,590 |
Savings Plans
Savings Plans | 12 Months Ended |
Feb. 02, 2019 | |
Retirement Benefits [Abstract] | |
Savings Plans | Savings Plans The Company established the Guess?, Inc. Savings Plan (the “Savings Plan”) under Section 401(k) of the Internal Revenue Code. Under the Savings Plan, employees (“associates”) may contribute up to 100% of their compensation per year subject to the elective limits as defined by IRS guidelines and the Company may make matching contributions in amounts not to exceed 3.0% of the associates’ annual compensation. Investment selections consist of mutual funds and do not include any Company common stock. The Company’s contributions to the Savings Plan amounted to $1.2 million , $1.1 million and $1.2 million for fiscal 2019 , fiscal 2018 and fiscal 2017 , respectively. Effective January 1, 2006, the Company adopted a Non-Qualified Deferred Compensation Plan (the “DCP”). Under the DCP, select employees who satisfy certain eligibility requirements and members of the Board of Directors may make annual irrevocable elections to defer a portion of their base compensation and/or bonuses. The deferred amounts and earnings thereon are payable to participants at specified future distribution dates, upon termination of employment, retirement, disability, death or change in control of the Company, in a lump sum or installments, pursuant to elections under the rules of the DCP. The participants to the DCP have an unsecured contractual commitment by the Company to pay the amounts due under the DCP. The deferred compensation liability as of February 2, 2019 and February 3, 2018 was $14.4 million and $13.5 million , respectively, and was included in accrued expenses and other long-term liabilities in the Company’s consolidated balance sheets depending on the expected timing of payments. The Company has purchased corporate-owned life insurance, which is held in a rabbi trust, to offset this liability. The assets held in the rabbi trust are not available for general corporate purposes except in the event of bankruptcy of the Company. As of February 2, 2019 and February 3, 2018 , the long-term asset was $14.3 million and $13.7 million , respectively. All earnings and expenses of the rabbi trust are reported in the Company’s consolidated statements of income in other income (expense). For fiscal 2019 , fiscal 2018 and fiscal 2017 , the Company incurred unrealized gains (losses) of $(0.4) million , $1.7 million and $1.5 million , respectively, related to the change in the value of the insurance policy investments. |
Quarterly Information (Unaudite
Quarterly Information (Unaudited) | 12 Months Ended |
Feb. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information (Unaudited) | Quarterly Information (Unaudited) The following is a summary of the unaudited quarterly financial information for fiscal 2019 and fiscal 2018 (in thousands, except per share data): Quarterly Periods Ended 1 Year Ended February 2, 2019 May 5, Aug 4, Nov 3, Feb 2, Net revenue 2 $ 521,289 $ 645,871 $ 605,407 $ 837,127 Gross profit 173,938 239,431 220,143 306,092 Net earnings (loss) (20,987 ) 25,734 (12,816 ) 25,235 Net earnings (loss) attributable to Guess?, Inc. (21,221 ) 25,530 (13,442 ) 23,232 Net earnings (loss) per common share attributable to common stockholders 3,4,5,6,7,8,9 : Basic $ (0.27 ) $ 0.32 $ (0.17 ) $ 0.29 Diluted $ (0.27 ) $ 0.31 $ (0.17 ) $ 0.28 Quarterly Periods Ended 1 Year Ended February 3, 2018 Apr 29, Jul 29, Oct 28, Feb 3, Net revenue 2 $ 454,345 $ 568,292 $ 548,953 $ 792,164 Gross profit 144,642 198,027 191,109 295,070 Net earnings (21,227 ) 15,881 (1,662 ) 3,107 Net earnings attributable to Guess?, Inc. (21,293 ) 15,219 (2,860 ) 1,040 Net earnings per common share attributable to common stockholders 3,5,6,7,8,9 : Basic $ (0.26 ) $ 0.18 $ (0.04 ) $ (0.01 ) Diluted $ (0.26 ) $ 0.18 $ (0.04 ) $ (0.01 ) ______________________________________________________________________ 1 All fiscal quarters presented consisted of 13 weeks with the exception of the quarter ended February 3, 2018 which consisted of 14 weeks. 2 Net revenue for the quarters in fiscal 2019 reflects the adoption of the new revenue recognition standard and is not presented comparable to the quarters in fiscal 2018. 3 Per common share amounts for the quarters and full years have been calculated separately. Accordingly, quarterly amounts may not add to the annual amount because of differences in the average common shares outstanding during each period. In addition, holders of the Company’s restricted stock awards are not required to participate in losses of the Company. Therefore, in periods in which the Company reported a net loss, such losses were not allocated to these participating securities, and, as a result, basic and diluted net loss per share were the same in those periods. 4 On January 28, 2019, the Company announced the departure of its Chief Executive Officer and the terms of his separation. As a result, the company recorded $5.2 million in severance-related charges during the fourth quarter of fiscal 2019 . These charges are comprised of $2.4 million in cash related future severance payments and $2.8 million in non-cash stock-based compensation expenses representing the accelerated vesting of previously granted stock awards. 5 The Company recorded certain professional service and legal costs and related costs of $3.8 million , $2.0 million , $0.1 million and $0.2 million during the first, second, third and fourth quarters of fiscal 2019, respectively. The Company recorded $0.5 million of certain professional service and legal costs and related costs during the fourth quarter of fiscal 2018 . There were no certain professional service and legal costs and related costs during the first, second and third quarters of fiscal 2018 . 6 The Company recorded net gains on lease terminations of $0.2 million and $0.3 million during the first and fourth quarters of fiscal 2019 , respectively. There were no net gains (losses) on lease terminations recognized during the second or third quarters of fiscal 2019 . During the third and fourth quarters of fiscal 2018, the Company recorded net gains (losses) on lease terminations of $(11.5) million and $0.1 million , respectively. There were no net gains (losses) on lease terminations recognized during the first and second quarters of fiscal 2018 . Refer to Note 1 for further information regarding net gains (losses) on lease terminations. 7 During each of the periods presented, the Company recognized asset impairment charges for certain retail locations resulting from under-performance and expected store closures. The Company recorded asset impairment charges of $0.7 million , $3.0 million , $1.3 million and $1.9 million , respectively, during the first, second, third and fourth quarters of fiscal 2019 , respectively. The Company also recorded asset impairment charges of $2.8 million , $1.2 million , $2.0 million and $2.5 million , respectively, during the first, second, third and fourth quarters of fiscal 2018 . Refer to Note 5 for further detail regarding asset impairment charges. 8 During the third quarter of fiscal 2018, the Company recognized a charge of €37.0 million ( $42.4 million ) related to a fine expected to be imposed on the Company by the European Commission related to alleged violations of European Union competition rules by the Company. In December of fiscal 2019, the European Commission published its findings and levied a total fine of €39.8 million ( $45.6 million ), which the Company paid in the first quarter of fiscal 2020. As a result, during the fourth quarter of fiscal 2019, the Company recorded additional charges of €2.8 million ( $3.2 million ). 9 During the fourth quarter of fiscal 2018, the Company recognized additional tax expense of $47.9 million related to the enactment of the Tax Reform. Of these charges, $24.9 million related to reduction in deferred tax assets due to lower future U.S. corporate tax rates and $23.0 million related to the deemed repatriation of foreign earnings. During the quarter ended November 3, 2018, the Company revised the provisional amounts previously recorded related to the estimated amounts due related to deemed repatriation of foreign earnings, and recorded income tax benefits of $6.3 million . During the third quarter of fiscal 2019, the Company reversed a portion of provisional amounts initially recorded during the three months ended February 3, 2018 and recorded a benefit of $19.6 million . During the fourth quarter of fiscal 2019, the Company concluded based on additional regulatory guidance issued during the quarter, related to the Tax Reform, that the Company would owe transition taxes if proposed legislation that clarifies existing tax regulation with respect to the dividends received deduction calculation is passed into law. As a result, during the three months ended February 2, 2019, the Company recorded additional charges due to the Tax Reform of $25.8 million . Refer to Note 11 for further detail. |
Segment Information
Segment Information | 12 Months Ended |
Feb. 02, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s reportable business segments and respective accounting policies of the segments are the same as those described in Note 1. Management evaluates segment performance based primarily on revenues and earnings (loss) from operations before corporate performance-based compensation costs, net gains (losses) from lease terminations, asset impairment charges, restructuring charges and certain non-recurring charges, if any. Corporate overhead, net gains (losses) from lease terminations, asset impairment charges, restructuring charges, interest income, interest expense and other income (expense) are evaluated on a consolidated basis and not allocated to the Company’s business segments. The Company does not evaluate performance or allocate resources based on segment asset data, and therefore total segment assets are not presented. During fiscal 2018, net revenue and related costs and expenses for certain globally serviced customers were reclassified into the segment primarily responsible for the relationship. During fiscal 2018, segment results were also adjusted to exclude corporate performance-based compensation costs, net gains (losses) on lease terminations and asset impairment charges due to the fact that these items are no longer included in the segment results provided to the Company’s chief operating decision maker in order to allocate resources and assess performance. Accordingly, the segment results for fiscal 2017 were adjusted to conform to such presentation. The Company believes this segment reporting reflects how its 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. Segment information is summarized as follows (in thousands): Year Ended Year Ended Year Ended Feb 2, 2019 1 Feb 3, 2018 1 Jan 28, 2017 1 Net revenue: Americas Retail $ 824,674 $ 833,077 $ 935,479 Americas Wholesale 170,812 150,366 146,260 Europe 1,142,768 998,657 788,194 Asia 388,246 308,899 248,601 Licensing 2,3 83,194 72,755 71,919 Total net revenue 2,3 $ 2,609,694 $ 2,363,754 $ 2,190,453 Earnings (loss) from operations: Americas Retail 2,4 $ 27,532 $ (11,096 ) $ (13,752 ) Americas Wholesale 2,4 29,935 25,845 25,007 Europe 4,5 58,298 94,545 65,068 Asia 4 12,365 14,809 (1,392 ) Licensing 2,3,4 72,986 63,538 61,472 Total segment earnings from operations 201,116 187,641 136,403 Corporate overhead 2,4 (96,805 ) (100,434 ) (71,867 ) European Commission fine 6 (45,637 ) — — Asset impairment charges 7 (6,939 ) (8,479 ) (34,385 ) Net gains (losses) on lease terminations 8 477 (11,373 ) 695 Restructuring charges 9 — — (6,083 ) Total earnings from operations 5 $ 52,212 $ 67,355 $ 24,763 Capital expenditures: Americas Retail $ 19,614 $ 16,899 $ 25,881 Americas Wholesale 376 1,303 3,320 Europe 56,792 46,419 42,080 Asia 23,458 12,111 13,869 Licensing — — 20 Corporate overhead 7,877 7,923 5,411 Total capital expenditures $ 108,117 $ 84,655 $ 90,581 ______________________________________________________________________ 1 The Company operates on a 52 /53-week fiscal year calendar, which ends on the Saturday nearest to January 31 of each year. The results for fiscal 2018 included the impact of an additional week which occurred during the fourth quarter ended February 3, 2018. 2 During the first quarter of fiscal 2019, the Company adopted a comprehensive new revenue recognition standard using a modified retrospective method that does not restate prior periods to be comparable to the current period presentation. The adoption of this guidance primarily impacted the presentation of advertising contributions received from the Company’s licensees and the related advertising expenditures incurred by the Company. The adoption of this guidance resulted in an increase in net royalty revenue within the Company’s Licensing segment of $10.7 million , as well as an increase in SG&A expenses in our Americas Retail, Americas Wholesale and Licensing segments as well as corporate overhead of $3.9 million , $1.7 million , $1.1 million and $3.0 million , respectively, during fiscal 2019 compared to the prior year. The net favorable impact on earnings from operations was approximately $1.0 million during fiscal 2019 compared to the prior year. Refer to Note 2 to the Condensed Consolidated Financial Statements for more information regarding the impact from the adoption of this new standard. 3 During the fourth quarter of fiscal 2018, the Company reclassified net royalties received on the Company’s inventory purchases of licensed product from net revenue to cost of product sales. Accordingly, net revenue by geographic area has been adjusted for fiscal 2017 to conform. 4 During fiscal 2019, the Company changed the segment accountability for funds received from licensees on the Company’s purchases of its licensed products. These amounts were treated as a reduction of cost of product sales within the Licensing segment but now are considered in the results of the segments that control the respective purchases for purposes of segment performance evaluation. Accordingly, segment results for fiscal 2018 and fiscal 2017 have been adjusted to conform to the current period presentation. 5 During fiscal 2019, the Company adopted new authoritative guidance which requires that the non-service components of net periodic defined benefit pension cost be presented outside of earnings (loss) from operations. Accordingly, earnings from operations and segment results for fiscal 2018 and fiscal 2017 have been adjusted to conform to the current period presentation. 6 During fiscal 2019, the Company recognized a charge of €39.8 million ( $45.6 million ) for a fine imposed by the European Commission related to alleged violations of European Union competition rules by the Company. The Company paid the full amount of the fine during the first quarter of fiscal 2020. 7 During each of the years presented, the Company recognized asset impairment charges for certain retail locations resulting from under-performance and expected store closures. Refer to Note 5 for more information regarding these asset impairment charges. 8 During fiscal 2019, the Company recorded net gain on lease terminations related primarily to the early termination of certain lease agreements in North America. During fiscal 2018, the Company incurred net losses on lease terminations related primarily to the modification of certain lease agreements held with a common landlord in North America. During fiscal 2017, the Company recorded net gains on lease terminations related primarily to the early termination of certain lease agreements in Europe. Refer to Note 1 for more information regarding the net gains (losses) on lease terminations. 9 Restructuring charges incurred during fiscal 2017 related to plans to better align the Company’s global cost and organizational structure with its current strategic initiatives. Refer to Note 9 for more information regarding these restructuring charges. The table below presents information regarding geographic areas in which the Company operated. Net revenue is classified primarily based on the country where the Company’s customer is located (in thousands): Year Ended Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Net product sales: U.S. $ 722,794 $ 709,155 $ 801,623 Italy 304,435 289,981 251,709 Canada 187,367 200,364 217,029 South Korea 162,943 163,382 156,094 Other foreign countries 1,148,961 928,117 692,079 Total product sales 2,526,500 2,290,999 2,118,534 Net royalties 1 83,194 72,755 71,919 Net revenue $ 2,609,694 $ 2,363,754 $ 2,190,453 ______________________________________________________________________ 1 During the fourth quarter of fiscal 2018, the Company reclassified net royalties received on the Company’s inventory purchases of licensed product from net revenue to cost of product sales. Accordingly, net revenue by geographic area has been adjusted for fiscal 2017 to conform to the current period presentation. Long-lived assets by geographic location are as follows: Feb 2, 2019 Feb 3, 2018 Long-lived assets: U.S. $ 111,022 $ 109,943 Italy 30,038 34,884 Canada 13,225 18,845 South Korea 9,437 9,584 Other foreign countries 222,727 187,214 Total long-lived assets $ 386,449 $ 360,470 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Feb. 02, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share 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): Year Ended Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Net earnings (loss) attributable to Guess?, Inc. $ 14,099 $ (7,894 ) $ 22,761 Less net earnings attributable to nonvested restricted stockholders 756 764 527 Net earnings (loss) attributable to common stockholders $ 13,343 $ (8,658 ) $ 22,234 Weighted average common shares used in basic computations 80,146 82,189 83,666 Effect of dilutive securities: Stock options and restricted stock units 1 1,443 — 163 Weighted average common shares used in diluted computations 81,589 82,189 83,829 Net earnings (loss) per common share attributable to common stockholders: Basic $ 0.17 $ (0.11 ) $ 0.27 Diluted $ 0.16 $ (0.11 ) $ 0.27 Dividends declared per common share $ 0.90 $ 0.90 $ 0.90 ______________________________________________________________________ 1 For fiscal 2018, there were 652,494 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. For fiscal 2019 , fiscal 2018 and fiscal 2017 , equity awards granted for 1,526,717 , 2,925,549 and 3,254,259 , 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 fiscal 2019 , the Company also excluded 928,026 nonvested stock units 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 February 2, 2019 . For fiscal 2018 , the Company excluded 899,345 nonvested stock units 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 February 3, 2018 . For fiscal 2017 , the Company excluded 473,878 nonvested stock units 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 since these conditions were not achieved as of January 28, 2017 . |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Feb. 02, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation Share-Based Compensation Plans The Company has four share-based compensation plans. The Guess?, Inc. 2004 Equity Incentive Plan (the “Plan”) provides that the Board of Directors may grant stock options and other equity awards to officers, key employees and certain consultants and advisors to the Company or any of its subsidiaries. Effective May 19, 2017, the Plan was amended to increase the authorized issuance of shares from 15,000,000 shares of common stock to 29,100,000 shares of common stock. In addition, the amendment provided that awards granted on or after May 1, 2017 (other than stock options or stock appreciation rights) would be counted against the number of shares available to be issued under the Plan as 3.54 shares for every one share actually issued. The amendment also extended the term through May 19, 2027 and extended the Company’s ability to grant certain performance-based awards under the Plan through the first annual meeting of the Company’s shareholders in calendar 2022. As of February 2, 2019 and February 3, 2018 , there were 12,075,403 and 15,350,428 shares available for grant under the Plan, respectively. Stock options granted under the Plan have ten -year terms and typically vest and become fully exercisable in increments of one-fourth of the shares granted on each anniversary from the date of grant. Stock awards/units granted under the Plan typically vest in increments of one-fourth of the shares granted on each anniversary from the date of grant. The three most recent annual grants for stock options had initial vesting periods of nine months followed by three annual vesting periods. The most recent annual grants for other equity awards had initial vesting periods of seven months followed by three annual vesting periods. The Guess?, Inc. Employee Stock Purchase Plan (“ESPP”) allows qualified employees to participate in the purchase of designated shares of the Company’s common stock at a price equal to 85% of the lower of the closing price at the beginning or end of each quarterly stock purchase period. The Guess?, Inc. 2006 Non-Employee Directors’ Stock Grant and Stock Option Plan (the “Director Plan”) provides for the grant of equity awards to non-employee directors. Effective May 20, 2016, the Director Plan was amended to extend the term through June 30, 2026 , reduce the authorized issuance of shares from 2,000,000 shares of common stock to 1,850,000 shares of common stock and allow more flexibility to structure compensation arrangements for the Company’s non-employee directors. All other remaining provisions under the Director Plan remained in full force and effect. As of February 2, 2019 and February 3, 2018 , there were 423,873 and 495,489 shares available for grant under this plan, respectively. In addition, the Guess?, Inc. 1996 Equity Incentive Plan, under which equity grants have not been permitted since the approval of the Plan in 2004, continues to govern outstanding awards previously made thereunder. Performance-Based Awards The Company has granted certain nonvested units that require certain minimum performance targets to be achieved in order for these awards to vest . Vesting is also subject to continued service requirements through the vesting date . If the minimum performance targets are not forecasted to be achieved, no expense is recognized during the period . 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 either (i) the end of the first fiscal year or (ii) the first anniversary of the date of grant, 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. 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. Any shares that are ultimately issued are scheduled to vest at the end of the third fiscal year following the grant date. Market-Based Awards The Company has granted certain nonvested stock units which are subject to market-based performance targets in order for these units to vest. Vesting is also subject to continued service requirements through the vesting date. The grant date fair value for such nonvested stock units was estimated using a Monte Carlo simulation that incorporates option-pricing inputs covering the period from the grant date through the end of the performance period. Compensation expense for such nonvested stock units is recognized on a straight-line basis over the vesting period, regardless of whether the market condition is satisfied. 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. Contingently Returnable Restricted Stock Awards On July 7, 2015, the Company granted Victor Herrero, the Company’s former Chief Executive Officer, 150,000 restricted stock units in addition to certain other stock options and nonvested stock units in connection with an employment agreement entered into between the Company and Mr. Herrero (the “Herrero Employment Agreement”). These restricted stock units vested immediately but were considered contingently returnable as a result of a one-year implied service condition set forth in the Herrero Employment Agreement. This service condition was met during the year ended January 28, 2017. Compensation expense for these types of restricted stock units are recognized on a straight-line basis over the implied service period. Share-Based Compensation Expense Compensation expense for nonvested stock options and stock awards/units that are not subject to performance-based vesting conditions is recognized on a straight-line basis over the vesting period . Compensation expense for performance-based awards that vest in increments is recognized based on an accelerated attribution method . During fiscal 2018, the Company adopted authoritative guidance which eliminated the requirement to estimate forfeitures, but rather provides for an election that would allow entities to account for forfeitures as they occur. The Company adopted this election using the modified retrospective method and recorded a cumulative adjustment to reduce retained earnings by approximately $0.3 million as of the beginning of the period of adoption. The following table summarizes the share-based compensation expense recognized under all of the Company’s stock plans during fiscal 2019 , fiscal 2018 and fiscal 2017 (in thousands): Year Ended Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Stock options $ 2,563 $ 2,345 $ 2,219 Stock awards/units 17,187 16,347 14,544 ESPP 223 160 145 Total share-based compensation expense $ 19,973 $ 18,852 $ 16,908 Stock options The following table summarizes the stock option activity under all of the Company’s stock plans during fiscal 2019 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Options outstanding at February 3, 2018 3,912,412 $ 20.33 Granted 431,371 $ 20.74 Exercised (553,700 ) $ 16.16 Forfeited (143,899 ) $ 18.44 Expired (65,275 ) $ 41.71 Options outstanding at February 2, 2019 3,580,909 $ 20.71 6.11 $ 7,698 Exercisable at February 2, 2019 2,499,944 $ 23.18 5.16 $ 2,771 The fair value of each stock option was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted average assumptions used for grants during fiscal 2019 , fiscal 2018 and fiscal 2017 : Year Ended Year Ended Year Ended Valuation Assumptions Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Risk-free interest rate 2.3 % 1.5 % 1.0 % Expected stock price volatility 46.1 % 37.1 % 35.4 % Expected dividend yield 4.3 % 8.0 % 4.8 % Expected life of stock options 4.4 years 4.4 years 4.2 years The risk-free interest rate is based on the U.S. Treasury yield curve in effect for the expected term of the option at the time of grant. The expected stock price volatility is determined based on an average of both historical volatility and implied volatility. Implied volatility is derived from exchange traded options on the Company’s common stock. The expected dividend yield is based on the Company’s history and expectations of dividend payouts. The expected life is determined based on historical trends. The weighted average grant date fair value of options granted was $5.89 , $1.57 and $3.53 during fiscal 2019 , fiscal 2018 and fiscal 2017 , respectively. The total intrinsic value of stock options exercised was $3.4 million and $0.7 million during fiscal 2019 and fiscal 2018 , respectively. During fiscal 2017 , the intrinsic value of stock options exercised was minimal. The intrinsic value of stock options is defined as the difference between the Company’s stock price on the exercise date and the grant date exercise price. The total cash received from option exercises was $8.9 million , $1.4 million and $0.2 million during fiscal 2019 , fiscal 2018 and fiscal 2017 , respectively. The compensation expense included in SG&A expense recognized was $2.6 million before the recognized income tax benefit of $0.6 million during fiscal 2019 . As of February 2, 2019 , there was approximately $3.2 million of unrecognized compensation cost related to nonvested stock options. This cost is expected to be recognized over a weighted average period of 1.6 years . The excess tax windfall included in cash flows from operating activities related to stock option activity was $0.3 million for fiscal 2019 . Stock awards/units The following table summarizes the nonvested stock awards/units activity under all of the Company’s stock plans during fiscal 2019 : Number of Awards/Units Weighted Average Grant Date Fair Value Nonvested at February 3, 2018 2,464,566 $ 13.66 Granted 1,203,501 $ 20.81 Vested (695,024 ) $ 15.65 Forfeited (340,874 ) $ 16.45 Nonvested at February 2, 2019 2,632,169 $ 16.04 The following table summarizes the activity for nonvested performance-based units and nonvested market-based units included in the table above during fiscal 2019 : Performance-Based Units Market-Based Units Number of Units Weighted Number of Units Weighted Average Grant Date Fair Value Nonvested at February 3, 2018 1,300,921 $ 14.01 388,477 $ 12.28 Granted 496,500 $ 21.84 129,932 $ 20.28 Vested (259,112 ) $ 14.38 — $ — Forfeited (167,079 ) $ 16.78 — $ — Nonvested at February 2, 2019 1,371,230 $ 16.44 518,409 $ 14.28 The fair value of each market-based nonvested stock unit was estimated on the grant date using the Monte Carlo simulation with the following assumptions used for the grants during fiscal 2019 , fiscal 2018 and fiscal 2017 : Year Ended Year Ended Year Ended Valuation Assumptions Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Risk-free interest rate 2.6 % 1.4 % 0.9 % Expected stock price volatility 42.1 % 39.7 % 36.2 % Expected dividend yield — % — % — % Expected life of market-based awards 2.6 years 2.8 years 2.8 years The weighted average grant date fair value for the total nonvested stock awards/units granted was $20.81 , $11.41 and $18.01 during fiscal 2019 , fiscal 2018 and fiscal 2017 , respectively. The total fair value at grant date of previously nonvested stock awards/units that were vested during fiscal 2019 , fiscal 2018 and fiscal 2017 was $10.9 million , $18.4 million and $14.7 million , respectively. During fiscal 2019 , fiscal 2018 and fiscal 2017 , the total intrinsic value of nonvested stock awards/units that vested was $14.6 million , $12.6 million and $9.4 million , respectively. The total intrinsic value of nonvested stock awards/units outstanding and unvested as of February 2, 2019 was $50.1 million . The compensation expense included in SG&A expense recognized during fiscal 2019 was $17.2 million before the recognized income tax benefit of $3.0 million . As of February 2, 2019 , there was approximately $14.5 million of total unrecognized compensation cost related to nonvested stock awards/units. This cost is expected to be recognized over a weighted average period of 1.7 years . The excess tax windfall of $0.9 million related to stock award/unit activity was included in cash flows from operating activities for fiscal 2019 . ESPP The Company’s ESPP allows qualified employees (as defined) to participate in the purchase of designated shares of the Company’s common stock at a price equal to 85% of the lower of the closing price at the beginning or end of each quarterly stock purchase period. The ESPP requires participants to hold any shares purchased under the ESPP for a minimum period of six months after purchase. In addition, all Company employees are subject to the terms of the Company’s securities trading policy which generally prohibits the purchase or sale of any Company securities during the two weeks before the end of each fiscal quarter through two days after the public announcement by the Company of its earnings for that period. The Company has 4,000,000 shares of common stock registered under the ESPP. The Company’s ESPP will remain in effect through March 11, 2022 . During fiscal 2019 , fiscal 2018 and fiscal 2017 , 43,737 shares, 54,300 shares and 44,486 shares of the Company’s common stock were issued pursuant to the ESPP at an average price of $16.88 , $10.45 and $12.56 per share, respectively. The fair value of stock compensation expense associated with the Company’s ESPP was estimated on the date of grant using the Black-Scholes option-pricing valuation model with the following weighted average assumptions used for grants during fiscal 2019 , fiscal 2018 and fiscal 2017 . Year Ended Year Ended Year Ended Valuation Assumptions Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Risk-free interest rate 2.0 % 1.0 % 0.3 % Expected stock price volatility 59.1 % 45.8 % 41.1 % Expected dividend yield 4.6 % 7.6 % 6.2 % Expected life of ESPP options 3 months 3 months 3 months The weighted average grant date fair value of ESPP options granted during fiscal 2019 , fiscal 2018 and fiscal 2017 was $5.17 , $2.85 and $3.32 , respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Feb. 02, 2019 | |
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 February 2, 2019 and February 3, 2018 (in thousands): Fair Value Measurements at Feb 2, 2019 Fair Value Measurements at Feb 3, 2018 Recurring Fair Value Measures Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Foreign exchange currency contracts $ — $ 4,690 $ — $ 4,690 $ — $ 51 $ — $ 51 Interest rate swap — 1,033 — 1,033 — 1,460 — $ 1,460 Total $ — $ 5,723 $ — $ 5,723 $ — $ 1,511 $ — $ 1,511 Liabilities: Foreign exchange currency contracts $ — $ 77 $ — $ 77 $ — $ 18,089 $ — $ 18,089 Deferred compensation obligations — 14,405 — 14,405 — 13,476 — 13,476 Total $ — $ 14,482 $ — $ 14,482 $ — $ 31,565 $ — $ 31,565 There were no transfers of financial instruments between the three levels of fair value hierarchy during fiscal 2019 and fiscal 2018 . 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. The fair values of the interest rate swaps are based upon inputs corroborated by observable market data. 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. During fiscal 2018, the Company invested € 0.5 million ( $0.5 million ) in a private equity fund. During fiscal 2019 , the Company made additional investments totaling €0.9 million ( $1.1 million ). As permitted in accordance with authoritative guidance, the Company uses net asset value per share as a practical expedient to measure the fair value of this investment and has not included this investment in the fair value hierarchy as disclosed above. During fiscal 2019 , the Company recorded an unrealized loss of €0.1 million ($ 0.2 million ) in other income (expense). As of February 2, 2019 and February 3, 2018 , the Company included €1.2 million ($ 1.4 million ) and €0.5 million ( $0.6 million ), respectively, in other assets in the Company’s condensed consolidated balance sheet related to this investment. As of February 2, 2019 , the Company had an unfunded commitment to invest an additional € 3.6 million ($ 4.2 million ) in the private equity fund. 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 8) are based on the amount of future cash flows associated with each instrument discounted using the Company’s incremental borrowing rate. As of February 2, 2019 and February 3, 2018 , 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. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Feb. 02, 2019 | |
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, China, Hong Kong, and Mexico are denominated in U.S. dollars, British pounds and Russian rubles 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 8 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 February 2, 2019 , 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 (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 (loss) 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 (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 (expense). Summary of Derivative Instruments The fair value of derivative instruments in the consolidated balance sheets as of February 2, 2019 and February 3, 2018 is as follows (in thousands): Derivative Balance Sheet Location Fair Value at Feb 2, 2019 Fair Value at Feb 3, 2018 ASSETS: Derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange currency contracts Other current assets/ Other assets $ 4,058 $ 41 Interest rate swap Other assets 1,033 1,460 Total derivatives designated as hedging instruments 5,091 1,501 Derivatives not designated as hedging instruments: Foreign exchange currency contracts Other current assets 632 10 Total $ 5,723 $ 1,511 LIABILITIES: Derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange currency contracts Accrued expenses/ Other long-term liabilities $ 77 $ 13,789 Derivatives not designated as hedging instruments: Foreign exchange currency contracts Accrued expenses — 4,300 Total $ 77 $ 18,089 Derivatives Designated as Hedging Instruments Foreign Exchange Currency Contracts Designated as Cash Flow Hedges During fiscal 2019 , the Company purchased U.S. dollar forward contracts in Europe totaling US $152.4 million that were designated as cash flow hedges. As of February 2, 2019 , the Company had forward contracts outstanding for its European and Canadian operations of US $175.2 million and US $3.9 million , respectively, to hedge forecasted merchandise purchases, which are expected to mature over the next 17 months . At February 3, 2018 , the Company had forward contracts outstanding for its European and Canadian operations of US $145.8 million and US $38.7 million , respectively, that were designated as cash flow hedges. As of February 2, 2019 , accumulated other comprehensive income (loss) related to foreign exchange currency contracts included a net unrealized gain of approximately $2.2 million , net of tax, of which $2.1 million will be recognized in cost of product sales over the following 12 months, at the then current values on a pre-tax basis, which can be different than the current year-end values . Interest Rate Swap Agreement Designated as Cash Flow Hedge During fiscal 2017, 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 February 2, 2019 , accumulated other comprehensive income (loss) related to the interest rate swap agreement included a net unrealized gain of approximately $0.8 million , net of tax, which will be recognized in interest expense after the following 12 months, at the then current values on a pre-tax basis, which can be different than the current year-end values. The following table summarizes the gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in accumulated other comprehensive income (loss) and net earnings (loss) for fiscal 2019 , fiscal 2018 and fiscal 2017 (in thousands): Year Ended February 2, 2019 Gain (Loss) Recognized in OCI Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings 1 Gain (Loss) Reclassified from Accumulated OCI into Earnings Derivatives designated as cash flow hedges: Foreign exchange currency contracts $ 12,973 Cost of product sales $ (7,020 ) Foreign exchange currency contracts 2 Other income (expense) (201 ) Interest rate swap (324 ) Interest expense 103 Year Ended February 3, 2018 Gain (Loss) Recognized in OCI Location of Gain (Loss) Reclassified from Accumulated OCI into Loss 1 Gain (Loss) Reclassified from Accumulated OCI into Loss Loss Reclassified from Accumulated OCI to Retained Earnings 2 Derivatives designated as cash flow hedges: Foreign exchange currency contracts $ (22,497 ) Cost of product sales $ 14 $ — Foreign exchange currency contracts (1,163 ) Other income (expense) (583 ) — Interest rate swap 272 Interest expense (87 ) (225 ) Year Ended January 28, 2017 Gain Recognized in OCI Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings 1 Gain (Loss) Reclassified from Accumulated OCI into Earnings Derivatives designated as cash flow hedges: Foreign exchange currency contracts $ — Cost of product sales $ 3,518 Foreign exchange currency contracts 227 Other income (expense) 301 Interest rate swap 660 Interest expense (216 ) ________________________________________________________________________ 1 The Company recognized gains of $3.5 million , $ 2.7 million and $ 0.9 million resulting from the ineffective portion related to foreign exchange currency contracts in interest income during fiscal 2019 , fiscal 2018 and fiscal 2017 , respectively. There was no ineffectiveness recognized related to the interest rate swap during fiscal 2019 , fiscal 2018 , or fiscal 2017. 2 During the fourth quarter of fiscal 2018, the Company early adopted authoritative guidance which addresses certain stranded income tax effects in accumulated other comprehensive loss resulting from the Tax Reform enacted in December 2017. As a result, the Company recorded a cumulative adjustment to reduce retained earnings by $0.2 million with a corresponding increase to accumulated other comprehensive income (loss) related to the Company’s interest rate swap designated as a cash flow hedge . The following table summarizes net after-tax derivative activity recorded in accumulated other comprehensive income (loss) (in thousands): Year Ended Feb 2, 2019 Year Ended Feb 3, 2018 Beginning balance gain (loss) $ (14,369 ) $ 5,400 Net gains (losses) from changes in cash flow hedges 10,962 (20,408 ) Net losses reclassified to earnings (loss) 6,406 414 Net losses reclassified to retained earnings 1 — 225 Ending balance gain (loss) $ 2,999 $ (14,369 ) ______________________________________________________________________ 1 During the fourth quarter of fiscal 2018, the Company early adopted authoritative guidance which addresses certain stranded income tax effects in accumulated other comprehensive loss resulting from the Tax Reform enacted in December 2017. As a result, the Company recorded a cumulative adjustment to reduce retained earnings by $0.2 million with a corresponding increase to accumulated other comprehensive income (loss) related to the Company’s interest rate swap designated as a cash flow hedge . Derivatives Not Designated as Hedging Instruments As of February 2, 2019 , the Company had euro foreign exchange currency contracts to purchase US $8.2 million expected to mature over the next three months . There were no Canadian dollar foreign exchange currency contracts as of February 2, 2019 . At February 3, 2018 , the Company had euro foreign exchange currency contracts to purchase US $68.2 million and Canadian dollar foreign exchange currency contracts to purchase US $17.6 million . 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 fiscal 2019 , fiscal 2018 and fiscal 2017 (in thousands): Location of Gain (Loss) Recognized in Earnings (Loss) Gain (Loss) Recognized in Earnings (Loss) Year Ended Feb 2, 2019 Year Ended Feb 3, 2018 Year Ended Jan 28, 2017 Derivatives not designated as hedging instruments: Foreign exchange currency contracts Other income (expense) $ 6,785 $ (10,511 ) $ 2,427 Interest rate swap Other income (expense) — — 38 |
Share Repurchase Program
Share Repurchase Program | 12 Months Ended |
Feb. 02, 2019 | |
Equity [Abstract] | |
Share Repurchase Program | 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. During fiscal 2019 , the Company repurchased 1,118,808 shares under the program at an aggregate cost of $17.6 million . During fiscal 2018 , the Company repurchased 3,866,387 shares under the program at an aggregate cost of $56.1 million , of which $6.0 million was settled in fiscal 2019 . During fiscal 2017 , the Company repurchased 289,968 shares at an aggregate cost of $3.5 million . As of February 2, 2019 , the Company had remaining authority under the program to purchase $374.6 million of its common stock . |
Subsequent Events
Subsequent Events | 12 Months Ended |
Feb. 02, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Share Repurchases Subsequent to year end, the Company repurchased 1,000,000 shares under its share repurchase program at an aggregate cost of $18.9 million . Dividends On March 20, 2019 , 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 April 18, 2019 to shareholders of record as of the close of business on April 3, 2019 . |
SCHEDULE II VALUATION AND QUALI
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Feb. 02, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II GUESS?, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Years Ended February 2, 2019 , February 3, 2018 and January 28, 2017 (in thousands) Balance at Costs Deductions and Balance Description As of February 2, 2019 Allowance for doubtful accounts $ 13,478 $ 2,661 $ (7,599 ) $ 8,540 Allowance for markdowns 1 10,777 56,697 (55,353 ) 12,121 Allowance for sales returns 1 27,881 62,293 (56,957 ) 33,217 Total $ 52,136 $ 121,651 $ (119,909 ) $ 53,878 As of February 3, 2018 Allowance for doubtful accounts $ 13,810 $ 9,447 $ (9,779 ) $ 13,478 Allowance for markdowns 1 2,944 42,485 (34,652 ) 10,777 Allowance for sales returns 1 20,891 83,593 (76,603 ) 27,881 Total $ 37,645 $ 135,525 $ (121,034 ) $ 52,136 As of January 28, 2017 Allowance for doubtful accounts $ 13,285 $ 7,370 $ (6,845 ) $ 13,810 Allowance for markdowns 1 2,196 32,679 (31,931 ) 2,944 Allowance for sales returns 1 20,513 74,278 (73,900 ) 20,891 Total $ 35,994 $ 114,327 $ (112,676 ) $ 37,645 ________________________________________________________________________ 1 During the first quarter of fiscal 2019, the Company adopted a new revenue recognition standard on a modified retrospective basis which changed the presentation of allowances for wholesale sales returns and wholesale markdowns to be classified within accrued expenses rather than as a reduction to accounts receivable. During fiscal 2018 and 2017, these amounts were reported as reductions to accounts receivable. Retail sales returns are reported as accrued expenses. |
Description of the Business a_2
Description of the Business and Summary of Significant Accounting Policies and Practices (Policies) | 12 Months Ended |
Feb. 02, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassifications | Reclassifications The Company has made certain reclassifications to prior period amounts to conform to the current period presentation within the accompanying notes to the consolidated financial statements. |
Fiscal Year | Fiscal Year The Company operates on a 52 / 53 -week fiscal year calendar, which ends on the Saturday nearest to January 31 of each year. All references herein to “fiscal 2019 ,” “fiscal 2018 ” and “fiscal 2017 ” represent the results of the 52 -week fiscal years ended February 2, 2019 and January 28, 2017 and the 53 -week fiscal year ended February 3, 2018 . The additional week in fiscal 2018 occurred during the fourth quarter ended February 3, 2018 . References to “fiscal 2020 ” represent the 52 -week fiscal year ending February 1, 2020. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Guess?, Inc., its wholly-owned direct and indirect subsidiaries and its non-wholly-owned subsidiaries and joint ventures in which the Company has a controlling financial interest and is determined to be the primary beneficiary. Accordingly, all references herein to “Guess?, Inc.” include the consolidated results of the Company, its wholly-owned subsidiaries and its joint ventures. All intercompany accounts and transactions are eliminated during the consolidation process. |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosed in the accompanying notes. Significant areas requiring the use of management estimates relate to the allowances for doubtful accounts, sales return and markdown allowances, gift card and loyalty accruals, valuation of inventories, share-based compensation, recoverability of deferred taxes, unrecognized tax benefits, the useful life of assets for depreciation and amortization, evaluation of asset impairment, pension obligations, workers’ compensation and medical self-insurance expense and accruals, litigation reserves and restructuring expense and accruals. Actual results could differ from those estimates. |
Business Segment Reporting | Business Segment Reporting Where applicable, the Company reports information about business segments and related disclosures about products and services, geographic areas and major customers. The Company’s businesses are grouped into five reportable segments for management and internal financial reporting purposes: Americas Retail , Americas Wholesale , Europe , Asia and Licensing . The Company’s Americas Retail, Americas Wholesale, Europe and Licensing reportable segments are the same as their respective operating segments. Certain components of the Company’s Asia reportable segment are separate operating segments based on regions which have been aggregated into the Asia reportable segment for disclosure purposes. Management evaluates segment performance based primarily on revenues and earnings (loss) from operations before corporate performance-based compensation costs, net gains (losses) from lease terminations, asset impairment charges, restructuring charges and certain non-recurring charges, if any. The Americas Retail segment includes the Company’s retail and e-commerce operations in the Americas. The Americas Wholesale segment includes the Company’s wholesale operations in the Americas. 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 and the Pacific. 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, net gains (losses) on lease terminations, asset impairment charges, restructuring charges and certain non-recurring charges, if any. Corporate overhead costs are presented separately and generally include, among other things, the following unallocated corporate costs: accounting and finance, executive compensation, corporate performance-based compensation, facilities, global advertising and marketing, human resources, information technology and legal. Information regarding these segments is summarized in Note 17 |
Revenue Recognition | he Company’s Asia reportable segment are separate operating segments based on regions which have been aggregated into the Asia reportable segment for disclosure purposes. Management evaluates segment performance based primarily on revenues and earnings (loss) from operations before corporate performance-based compensation costs, net gains (losses) from lease terminations, asset impairment charges, restructuring charges and certain non-recurring charges, if any. The Americas Retail segment includes the Company’s retail and e-commerce operations in the Americas. The Americas Wholesale segment includes the Company’s wholesale operations in the Americas. 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 and the Pacific. 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, net gains (losses) on lease terminations, asset impairment charges, restructuring charges and certain non-recurring charges, if any. Corporate overhead costs are presented separately and generally include, among other things, the following unallocated corporate costs: accounting and finance, executive compensation, corporate performance-based compensation, facilities, global advertising and marketing, human resources, information technology and legal. Information regarding these segments is summarized in Note 17 . Revenue Recognition Products Transferred at a Point in Time The Company recognizes the majority of its revenue from its direct-to-consumer (brick-and-mortar retail stores and concessions as well as e-commerce) and wholesale distribution channels at a point in time when it satisfies a performance obligation and transfers control of the product to the respective customer. For the Company’s brick-and-mortar retail stores and concessions, revenue is typically recognized at the point of sale and includes estimates of variable consideration such as allowances for sales returns and loyalty award obligations, where applicable. The Company adopted the new revenue recognition standard effective as of February 4, 2018 , and accordingly, revenue generated from the Company’s e-commerce sites is recognized when merchandise is transferred to a common carrier. This is a change compared to the Company’s treatment under previous guidance where revenue from the Company’s e-commerce sites was recognized based on the estimated customer receipt date. This change had an immaterial impact on revenue for fiscal 2019 . Revenue generated from the Company’s wholesale distribution channel is recognized when control transfers to the customer, which generally occurs upon shipment. The amount of revenue that is recognized is based on the transaction price, which represents the invoiced amount and includes estimates of variable consideration such as allowances for sales returns and markdowns, where applicable. The amount of variable consideration included in the transaction price may be constrained and is included only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized under the contract will not occur in a future period. The Company accepts payments at its brick-and-mortar retail locations and its e-commerce sites in the form of cash, credit cards, gift cards and loyalty points, where applicable. Payment terms, typically less than one year, are offered to the Company’s wholesale customers and do not include a significant financing component. The Company extends credit to wholesale customers based upon an evaluation of the customer’s financial condition and credit history and generally requires no collateral but does obtain credit insurance when considered appropriate . As of February 2, 2019 , approximately 49% of the Company’s total net trade accounts receivable and 61% of its European net trade receivables were subject to credit insurance coverage, certain bank guarantees or letters of credit for collection purposes. The Company’s credit insurance coverage contains certain terms and conditions specifying deductibles and annual claim limits. The Company maintains allowances for doubtful accounts for estimated losses that result from the inability of its wholesale customers to make their required payments. The Company bases its allowances on analysis of the aging of accounts receivable at the date of the financial statements, assessments of historical and current collection trends, an evaluation of the impact of current economic conditions and whether the Company has obtained credit insurance or other guarantees . Management performs regular evaluations concerning the ability of its customers to satisfy their obligations and records a provision for doubtful accounts based on these evaluations. The Company’s credit losses for the periods presented were not significant compared to sales and did not significantly exceed management’s estimates. Refer to Note 3 for further information regarding the Company’s allowance for doubtful accounts. Shipping and handling costs associated with outbound freight incurred to transfer a product to a customer are accounted for as fulfillment costs and are included in selling, general and administrative (“SG&A”) expenses. Sales and usage-based taxes collected from customers and remitted directly to governmental authorities are excluded from net revenues. This is consistent with the presentation of such amounts in previous years. The Company does not have significant contract balances related to its direct-to-consumer or wholesale distribution channels other than the allowance for sales returns and markdowns as well as liabilities related to its gift cards and loyalty programs, which are included in accrued expenses. The Company also does not have significant contract acquisition costs related to its direct-to-consumer or wholesale distribution channels. Sales Return Allowances The Company accrues for estimated sales returns in the period in which the related revenue is recognized. To recognize the financial impact of sales returns, the Company estimates the amount of goods that will be returned based on historical experience and current trends and reduces sales and cost of sales accordingly. The Company’s policy allows retail customers in certain regions a grace period to return merchandise following the date of sale. Substantially all of these returns are considered to be resalable at a price that exceeds the cost of the merchandise. The Company adopted the new revenue recognition standard effective as of February 4, 2018 , and accordingly, has included the allowance for sales returns in accrued expenses and the estimated cost associated with such sales returns within other current assets in its consolidated balance sheet. Prior to the adoption of the new revenue recognition standard, the Company recorded the allowance for wholesale sales returns against accounts receivable and the estimated cost of inventory associated with the allowance for sales returns in inventories. The allowance for retail sales returns was included in accrued expenses which is consistent with the current presentation. As of February 2, 2019 , the Company included $33.2 million in accrued expenses related to the allowance for sales returns and $13.0 million in other current assets related to the estimated cost of such sales returns. As of February 3, 2018 , the Company included $25.0 million and $2.9 million in accounts receivable and accrued expenses, respectively, related to the allowance for sales returns and $11.9 million in inventories related to the estimated cost of such sales returns. Markdown Allowances Costs associated with customer markdowns are recorded as a reduction to revenues and any amounts unapplied to existing receivables are included in accrued expenses. These markdown allowances resulted from seasonal negotiations with the Company’s wholesale customers, as well as historical trends and the evaluation of the impact of current economic conditions. The Company adopted the new revenue recognition standard effective as of February 4, 2018 , and accordingly, has included the allowance for markdowns in accrued expenses in its consolidated balance sheet. As of February 2, 2019 , the Company included $12.1 million in accrued expenses related to the allowance for markdowns. As of February 3, 2018 , the Company included $10.8 million in accounts receivable related to the allowance for markdowns. Gift Cards Gift card breakage is income recognized due to the non-redemption of a portion of gift cards sold by the Company for which a liability was recorded in prior periods. Gifts cards are mainly used in the U.S. and Canada. The Company issues its gift cards in the U.S. and Canada through one of its subsidiaries and is not required by law to escheat the value of unredeemed gift cards to the state in which the subsidiary is domiciled. Estimated breakage amounts are accounted for under the redemption recognition method and are classified as additional net revenues as the gift cards are redeemed. The Company’s gift card breakage rate is approximately 6.3% and 5.5% for the U.S. retail business and Canadian retail business, respectively, based upon historical redemption patterns, which represents the cumulative estimated amount of gift card breakage from the inception of the electronic gift card program in late 2002. Based upon historical redemption trends, the Company recognizes estimated gift card breakage as a component of net revenue in proportion to actual gift card redemptions, over the period that remaining gift card values are redeemed. Any future revisions to the estimated breakage rate may result in changes in the amount of breakage income recognized in future periods. There have been no changes to the Company’s accounting for gift card breakage upon adoption of the new revenue recognition standard effective as of the first quarter of fiscal 2019. In fiscal 2019 , fiscal 2018 and fiscal 2017 , the Company recognized $0.7 million , $0.7 million and $0.8 million of gift card breakage to revenue, respectively. As of February 2, 2019 and February 3, 2018 , the Company included $5.4 million and $5.2 million in accrued expenses related to its gift card liability, respectively. Loyalty Programs The Company has customer loyalty programs in North America, Europe and Asia which cover all of its brands. Under certain of the programs, primarily in the U.S. and Canada, customers accumulate points based on purchase activity. Once a loyalty program member achieves a certain point level, the member earns awards that may only be redeemed for merchandise. Unredeemed points generally expire after six months without additional purchase activity and unredeemed awards generally expire after two months . Where applicable, the Company allocates a portion of the transaction price from sales in its direct-to-consumer channel to its loyalty program by using historical redemption rates to estimate the value of future award redemptions. This amount is accrued in current liabilities and recorded as a reduction of net revenue in the period which the related revenue is recognized. During fiscal 2019 , fiscal 2018 and fiscal 2017, activity related to the Company’s loyalty programs increased (decreased) net revenue by $(1.7) million , $0.3 million and $0.7 million , respectively. The aggregate dollar value of the loyalty program accruals included in accrued expenses was $5.7 million and $3.8 million as of February 2, 2019 and February 3, 2018 , respectively. Future revisions to the estimated liability may result in changes to net revenue. Intellectual Property Transferred Over Time The Company’s trademark license agreements represent symbolic licenses that are dependent on the Company’s continued support over the term of the license agreement. The amount of revenue that is recognized from the licensing arrangements is based on sales-based royalty and advertising fund contributions as well as specific fixed payments, where applicable. The typical license agreement requires that the licensee pay the Company the greater of a royalty based on a percentage of the licensee’s net sales of licensed products or a guaranteed annual minimum royalty that typically increases over the term of the license agreement . Generally, licensees are also required to make contributions to advertising funds, as a percentage of their sales, or may elect to increase their contribution to support specific brand-building initiatives . The Company recognizes revenue from sales-based royalty and advertising fund contributions when the related sales occur, which is consistent with the timing of when the performance obligation is satisfied. The Company adopted the new revenue recognition standard effective as of February 4, 2018 , and accordingly, has recorded advertising contributions in revenue on a gross basis separate from any related advertising expenditures made by the Company which are recorded in SG&A expenses in the Company’s consolidated statements of income (loss). Prior to the adoption of the new revenue recognition standard, the Company recorded advertising contributions received from its licensees and the related advertising expenditures incurred by the Company on a net basis in its consolidated balance sheet. Under previous guidance, to the extent that the advertising contributions exceed the Company’s advertising expenditures for its licensees, the excess contribution was treated as a deferred liability and was included in accrued expenses in the Company’s consolidated balance sheet. Refer to Note 2 for detail regarding the impact of this change on the Company’s consolidated balance sheet and its consolidated statements of income (loss) as a result of the adoption of the new revenue recognition standard. The Company records royalty and advertising payments received on the Company’s purchases of licensed product as a reduction of the cost of the licensed product. The Company’s trademark license agreements customarily provide for a multi-year initial term ranging from three to ten years, with a possible option to renew prior to expiration for an additional multi-year period . Several of the Company’s key license agreements provide for specified, fixed cash rights payments over and above our normal, ongoing royalty payments in consideration of the grant of the license rights. These payments are recognized ratably as revenue over the term of the license agreement and do not include a significant financing component. The unrecognized portion of upfront payments is included in deferred royalties in accrued expenses and other long-term liabilities depending on the short or long-term nature of the payments to be recognized. As of February 2, 2019 , the Company had $6.4 million and $ 15.5 million of deferred royalties included in accrued expenses and other long-term liabilities, respectively. This compares to $6.8 million and $ 12.8 million of deferred royalties included in accrued expenses and other long-term liabilities, respectively, at February 3, 2018 . In fiscal 2019 , fiscal 2018 and fiscal 2017 , the Company recognized $13.0 million , $12.0 million and $13.9 million in net royalties related to the amortization of the deferred royalties, respectively. Contract balances related to the Company’s licensing distribution channel consist primarily of royalty receivables and liabilities related to deferred royalties. Refer to Note 3 for further information on royalty receivables. The Company does not have significant contract acquisition costs related to its licensing operations. Refer to Note 17 for further information on disaggregation of revenue by segment and country. Classification of Certain Costs and Expenses The Company includes inbound freight charges, purchasing costs and related overhead, retail store occupancy costs, including rent and depreciation, and a portion of the Company’s distribution costs related to its direct-to-consumer business in cost of product sales. Distribution costs related primarily to the wholesale business are included in SG&A expenses and amounted to $55.7 million , $34.2 million and $22.6 million for fiscal 2019 , fiscal 2018 and fiscal 2017 , respectively. The Company also includes store selling, selling and merchandising, advertising, design and other corporate overhead costs as a component of SG&A expenses. The Company classifies amounts billed to customers for shipping fees as revenues and classifies costs related to shipping as cost of product sales in the accompanying consolidated statements of income (loss). |
Advertising and Marketing Costs | Advertising and Marketing Costs The Company expenses the cost of advertising as incurred. |
Share-Based Compensation | Share-Based Compensation The Company recognizes compensation expense for all share-based awards granted based on the grant date fair value. The fair value of each stock option is estimated on the grant date using the Black-Scholes option-pricing model and involves several assumptions, including the risk-free interest rate, expected volatility, dividend yield and expected life . The risk-free interest rate is based on the U.S. Treasury yield curve in effect for the expected term of the option at the time of grant. The expected stock price volatility is determined based on an average of both historical volatility and implied volatility. Implied volatility is derived from exchange traded options on the Company’s common stock. The expected dividend yield is based on the Company’s history and expectations of dividend payouts. The expected life is determined based on historical trends. Compensation expense for nonvested stock options and stock awards/units that are not subject to performance-based vesting conditions is recognized on a straight-line basis over the vesting period . During fiscal 2018, the Company adopted authoritative guidance which eliminated the requirement to estimate forfeitures, but rather provides for an election that would allow entities to account for forfeitures as they occur. In addition, the Company has granted certain nonvested units that require certain minimum performance targets to be achieved in order for these awards to vest . Vesting is also subject to continued service requirements through the vesting date . Compensation expense for performance-based awards that vest in increments is recognized based on an accelerated attribution method . If the minimum performance targets are not forecasted to be achieved, no expense is recognized during the period . The Company has also granted certain nonvested stock units which are subject to market-based performance targets in order for these units to vest. Vesting is also subject to continued service requirements through the vesting date. The grant date fair value for such nonvested stock units was estimated using a Monte Carlo simulation that incorporates option-pricing inputs covering the period from the grant date through the end of the performance period. Compensation expense for such nonvested stock units is recognized on a straight-line basis over the vesting period, regardless of whether the market condition is satisfied. Certain restricted stock units vest immediately but are considered contingently returnable as a result of certain service conditions. Compensation expense for these restricted stock units will be recognized on a straight-line basis over the implied service period. |
Foreign Currency | Foreign Currency Foreign Currency Translation Adjustment The local selling currency is typically the functional currency for all of the Company’s significant international operations. In accordance with authoritative guidance, assets and liabilities of the Company’s foreign operations are translated from foreign currencies into U.S. dollars at period-end rates, while income and expenses are translated at the weighted average exchange rates for the period. The related translation adjustments are reflected as a foreign currency translation adjustment in accumulated other comprehensive income (loss) within stockholders’ equity. In addition, the Company records foreign currency translation adjustments related to its noncontrolling interests within stockholders’ equity. 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 (see below). Changes in the fair values of these foreign exchange currency 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. The total foreign currency translation adjustment de creased stockholders’ equity (including amounts attributable to nonredeemable noncontrolling interests) by $52.7 million , from an accumulated foreign currency translation loss of $71.3 million as of February 3, 2018 to an accumulated foreign currency translation loss of $124.0 million as of February 2, 2019 . Foreign Currency Transaction Gains and Losses Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency, including gains and losses on foreign exchange currency contracts (see below), are included in the consolidated statements of income (loss). |
Derivatives | Derivatives Foreign Exchange Currency Contracts The Company operates in foreign countries, which exposes it to market risk associated with foreign currency exchange rate fluctuations. Various transactions that occur primarily in Europe, Canada, South Korea, China, Hong Kong, and Mexico are denominated in U.S. dollars, British pounds and Russian rubles 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 has entered into certain forward contracts to hedge the risk of a portion of these anticipated foreign currency transactions against 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 does not hedge all transactions denominated in foreign currency. The Company may also hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries. Changes in the fair value of the U.S. dollar/euro and U.S. dollar/Canadian dollar forward contracts for anticipated U.S. dollar merchandise purchases 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. Changes in the fair value of U.S. dollar/euro forward contracts for U.S. dollar intercompany royalties 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 (expense) in the period in which the royalty expense is incurred. Changes in the fair value of any U.S. dollar/euro 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 (loss) until the sale or liquidation of the hedged net investment . The Company also has forward contracts that are not designated as hedging instruments for accounting purposes. Changes in fair value of forward contracts not designated as hedging instruments are reported in net earnings (loss) as part of other income (expense). 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. 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 (expense). |
Income Taxes | Income Taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred income taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded when management believes it is more likely than not that the results of operations will not generate sufficient taxable earnings to realize certain net deferred tax assets. The Company accounts for uncertainty in income taxes in accordance with authoritative guidance, which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company also follows authoritative guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. |
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 Company considers any restricted stock units with forfeitable dividend rights that are issued and outstanding, but considered contingently returnable if certain service conditions are not met, as common equivalent shares outstanding. These restricted stock units are excluded from the weighted average number of common shares outstanding and basic earnings (loss) per share calculation until the respective service conditions have been met. Diluted earnings per share represents net earnings attributable to common stockholders divided by the weighted average number of common shares outstanding, inclusive of the dilutive impact of common equivalent shares outstanding during the period. The potentially dilutive impact of common equivalent shares outstanding is not included in the computation of diluted net loss per share if the impact of the shares would be antidilutive due to a net loss incurred for the period. 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, distributed and undistributed 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 because 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 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. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of net earnings (loss), foreign currency translation adjustments, the effective portion of the change in the fair value of cash flow hedges, unrealized and realized gains or losses and other-than-temporary-impairment on available-for-sale securities and defined benefit plan impact from actuarial valuation gains or losses and related amortization, plan amendment, prior service credit or cost amortization and curtailment. Comprehensive income (loss) is presented in the consolidated statements of comprehensive income (loss). |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. |
Investment Securities | Investment Securities The Company accounts for its investment securities in accordance with authoritative guidance which requires investments to be classified into one of three categories based on management’s intent: held-to-maturity securities, available-for-sale securities and trading securities. Held-to-maturity securities are recorded at their amortized cost. Available-for-sale securities are recorded at fair value with unrealized gains and losses reported as a separate component of stockholders’ equity. Trading securities are recorded at market value with unrealized gains and losses reported in net earnings. The appropriate classification of investment securities is determined at the time of purchase and reevaluated at each balance sheet date. The Company has historically accounted for its investment securities, if any, as available-for-sale. The Company periodically evaluates investment securities for other-than-temporary-impairment using both qualitative and quantitative criteria such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and the Company’s ability and intent to hold the investment for a period of time which may be sufficient for anticipated recovery in market value. Other-than-temporary-impairment is recognized in net earnings (loss) as part of other income (expense) in the period which the unrealized losses are deemed other than temporary. |
Concentration of Credit and Liquidity Risk | Concentration of Credit and Liquidity Risk Cash used primarily for working capital purposes is maintained with various major financial institutions. The Company performs evaluations of the relative credit standing of these financial institutions in order to limit the amount of asset and liquidity exposure with any institution. Excess cash and cash equivalents, which represent the majority of the Company’s outstanding cash and cash equivalents balance, are held primarily in overnight deposit and short-term time deposit accounts . The Company is also exposed to concentrations of credit risk through its accounts receivable balances. The Company extends credit to wholesale customers based upon an evaluation of the customer’s financial condition and credit history and generally requires no collateral but does obtain credit insurance when considered appropriate . |
Inventories | Inventories Inventories are valued at the lower of cost (primarily weighted average method) or net realizable value. The Company continually evaluates its inventories by assessing slow moving product as well as prior seasons’ inventory. Net realizable value of aged inventory is estimated based on historical sales trends for each product line category, the impact of market trends, an evaluation of economic conditions, available liquidation channels and the value of current orders relating to the future sales of this type of inventory. |
Depreciation and Amortization | Depreciation and Amortization Depreciation and amortization of property and equipment and purchased intangibles are provided using the straight-line method over the following useful lives: Building and building improvements 10 to 39 years Furniture, fixtures and equipment 2 to 10 years Purchased intangibles 2 to 20 years Leasehold improvements are amortized over the lesser of the estimated useful life of the asset or the term of the lease, including reasonably-assured renewal periods. Construction in progress is not depreciated until the related asset is completed and placed in servic |
Long-Lived Assets | 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 majority of the Company’s long-lived assets relate to its retail operations which consist primarily of regular retail and flagship locations. The Company considers each individual regular 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, certain long-term security deposits and lease acquisition costs. The Company reviews regular 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 at least one year allows a location to reach a maturity level where a more comprehensive analysis of financial performance can be performed. The Company evaluates impairment risk for regular 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. The Company has flagship locations which are used as a regional marketing tool to build brand awareness and promote the Company’s current product. Impairment for these locations is tested at a reporting unit level similar to goodwill (see below) since they do not have separately identifiable cash flows. 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 regular retail locations are based on management’s estimates of future cash flows over the remaining lease period or expected life, if shorter. For expected 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 regular retail location. The Company also considers factors such as: the local environment for each regular 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 in Note 20 . 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 |
Goodwill | Goodwill Goodwill is tested annually for impairment or more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. This determination is made at the reporting unit level which may be either an operating segment or one level below an operating segment if discrete financial information is available. Two or more reporting units within an operating segment may be aggregated for impairment testing if they have similar economic characteristics. The Company has identified its Americas Retail segment, its Americas Wholesale segment, its European wholesale and European retail components of its Europe segment and its China retail component of its Asia segment as reporting units for goodwill impairment testing. In accordance with authoritative guidance, the Company may first assess qualitative factors relevant in determining whether it is more likely than not that the fair values of its reporting units are less than their carrying amounts. Based on this analysis, the Company may determine whether it is necessary to perform a quantitative impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the amount of any impairment loss to be recognized for that reporting unit is determined using two steps. First, the Company determines the fair value of the reporting unit using a discounted cash flow analysis, which requires unobservable inputs (Level 3) within the fair value hierarchy as defined in Note 20 . These inputs include selection of an appropriate discount rate and the amount and timing of expected future cash flows. Second, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill and other intangibles over the implied fair value. The implied fair value is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation, in accordance with authoritative guidance. |
Other Assets | Other Assets Other assets mainly relate to the Company’s investments in insurance policies held in rabbi trusts to fund expected obligations arising under its non-qualified supplemental executive retirement and deferred compensation plans. Refer to Notes 12 and 15 for further information regarding these investments. During fiscal 2019, the Company invested $8.3 million in a privately-held apparel company headquartered in France and holds a 30% minority interest. In addition, other assets also relate to security, key money and other deposits to secure prime retail store locations and receivables related to refundable value-added tax payments mainly from European taxing authorities. |
Defined Benefit Plans | Defined Benefit Plans In accordance with authoritative guidance for defined benefit pension and other postretirement plans, an asset for a plan’s overfunded status or a liability for a plan’s underfunded status is recognized in the consolidated balance sheets; plan assets and obligations that determine the plan’s funded status are measured as of the end of the Company’s fiscal year; and changes in the funded status of defined benefit postretirement plans are recognized in the year in which they occur. Such changes are reported in other comprehensive income (loss) as a separate component of stockholders’ equity. The Company’s pension obligations and related costs are calculated using actuarial concepts, within the authoritative guidance framework , and are considered Level 3 inputs as defined in Note 20. The Company uses the corridor approach to amortize unrecognized actuarial gains or losses over the average remaining service life of active participants. The life expectancy, estimated retirement age, discount rate, estimated future compensation and expected return on plan assets are important elements of expense and/or liability measurement. These critical assumptions are evaluated annually which enables expected future payments for benefits to be stated at present value on the measurement date. If actual results are not consistent with actuarial assumptions, the amounts recognized for the defined benefit plans could change significantly. |
Deferred Rent and Lease Incentives | Deferred Rent and Lease Incentives When a lease includes lease incentives (such as a rent holiday) or requires fixed escalations of the minimum lease payments or advances, rental expense is recognized on a straight-line basis over the term of the lease. The difference between the average rental amount charged to expense and the lease payments or advances under the lease is included either in deferred rent and lease incentives or other assets in the accompanying consolidated balance sheets depending on whether the difference is in a liability or asset position at the end of the period. For construction allowances, the Company records a deferred lease credit on the consolidated balance sheets and amortizes the deferred lease credit as a reduction of rent expense in the consolidated statements of income (loss) over the term of the leases. |
Litigation Reserves | Litigation Reserves Estimated amounts for claims that are probable and can be reasonably estimated are recorded as liabilities in the consolidated balance sheets. As additional information becomes available, the Company assesses the potential liability related to new claims and existing claims and revises estimates as appropriate. As new claims arise or existing claims evolve, such revisions in estimates of the potential liability could materially impact the results of operations and financial position. |
New Accounting Guidance | Changes in Accounting Policies In May 2014, the Financial Accounting Standards Board (“FASB”) issued a comprehensive new revenue recognition standard which superseded previous existing revenue recognition guidance. The standard is intended to clarify the principles of recognizing revenue and create common revenue recognition guidance between GAAP and International Financial Reporting Standards. The standard also requires expanded disclosures surrounding revenue recognition. During fiscal 2017, the FASB issued additional clarification guidance on the new revenue recognition standard which also included certain scope improvements and practical expedients. The Company adopted this guidance (including clarification guidance issued) effective February 4, 2018 using the modified retrospective method and, as a result, recorded a cumulative adjustment to increase retained earnings by approximately $5.8 million , net of taxes. The adjustment related primarily to changes in the presentation of advertising contributions received from the Company’s licensees and the related advertising expenditures incurred by the Company. Under previous guidance, the Company recorded advertising contributions received from its licensees and the related advertising expenditures incurred by the Company on a net basis in its consolidated balance sheet. To the extent that the advertising contributions exceeded the Company’s advertising expenditures for its licensees, the excess contribution was treated as a deferred liability and was included in accrued expenses in the Company’s consolidated balance sheet. Under the new revenue recognition standard, advertising contributions and related advertising expenditures related to the Company’s licensing business are recorded on a gross basis in the Company’s consolidated statements of income (loss). This change resulted in an increase to net revenue and SG&A expenses of $10.7 million and $9.6 million , respectively, during fiscal 2019 compared to the prior year. Other minor differences related to the timing of revenue recognition from the Company’s e-commerce operations, which are now recognized when merchandise is transferred to a common carrier rather than upon receipt by the customer, and a minimal change in the valuation of the amount that is deferred related to points earned under the Company’s loyalty programs. Additionally, allowances for wholesale sales returns and wholesale markdowns are now presented as accrued expenses rather than as reductions to accounts receivable, and the estimated cost associated with the allowance for sales returns is presented within other current assets rather than included in inventories in the Company’s consolidated balance sheet. Refer to Note 1 for the Company’s expanded disclosures on revenue recognition. 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. In February 2018, the FASB issued additional clarification guidance which made targeted improvements to address certain aspects of recognition, measurement, presentation and disclosure requirements for financial instruments. The Company adopted this guidance (including the clarification guidance) effective February 4, 2018. The adoption of this guidance did not result in a cumulative-effect adjustment as of the beginning of the current year and did not have a material impact on the Company’s consolidated financial statements or related disclosures. In October 2016, the FASB issued authoritative guidance which amends the accounting for income taxes on intra-entity transfers of assets other than inventory. This guidance requires that entities recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The income tax consequences on intra-entity transfers of inventory will continue to be deferred until the inventory has been sold to a third-party. The Company adopted this guidance effective February 4, 2018. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements or related disclosures. In March 2017, the FASB issued authoritative guidance related to the presentation of net periodic pension cost in the income statement. This guidance requires that the service cost component of net periodic pension cost be presented in the same line as other compensation costs arising from services rendered by the employees during the period. The other non-service components of net periodic pension cost are required to be presented in the income statement separately from the service cost component and outside of earnings from operations. This guidance also allows for the service cost component to be eligible for capitalization when applicable. The Company adopted this guidance effective February 4, 2018 on a retrospective basis for the presentation of the service cost component and other non-service components of net periodic pension cost in the income statement and on a prospective basis for capitalization of the service cost component. As a result, the Company reclassified $2.2 million and $2.1 million from SG&A expenses to other expense during fiscal 2018 and fiscal 2017 , respectively, which resulted in a related improvement in earnings from operations during each of the respective periods. Other than the change in presentation of other non-service components of net periodic pension cost within the Company’s consolidated statements of income (loss), the adoption of this guidance did not have an impact on the Company’s consolidated financial statements and related disclosures. In May 2017, the FASB issued authoritative guidance that provides clarification on accounting for modifications in share-based payment awards. The Company adopted this guidance effective February 4, 2018. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements or related disclosures. In June 2018, the FASB issued authoritative guidance that expanded the scope of stock compensation to include non-employee share-based payment transactions. The Company early adopted this guidance during the second quarter of fiscal 2019. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements or related disclosures. Recently Issued Accounting Guidance In February 2016, the FASB issued a comprehensive new lease standard which will supersede previous lease guidance. The standard requires a lessee to recognize an asset related to the right to use the underlying asset and a liability that approximates the present value of the lease payments over the term for contracts that qualify as leases under the new guidance. In July 2018, the FASB issued authoritative guidance that provides entities with an additional transition method of applying the new lease standard at the adoption date and recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The FASB has also issued subsequent related ASUs, which detail amendments to the ASU, implementation considerations, narrow-scope improvements and practical expedients. The Company has elected to apply the group of practical expedients which allows the Company to carry forward its identification of contracts that are or contain leases, its historical lease classification and its initial direct costs for existing leases. The Company has also elected to recognize leases with an initial term of 12 months on a straight-line basis without recognizing a right-to-use asset or operating lease liability. The Company is in the process of finalizing the data validation and associated internal controls for its selected global lease management system. We currently estimate that the adoption of this standard will result in the recording of a material right-of-use asset and a material operating lease liability, as well as enhanced disclosures. We do not expect the adoption of this standard to have an impact on our Consolidated Statement of Cash Flows, or earnings from operations in our Consolidated Statements of Income (Loss). We are currently assessing the impact to other income (expense), net, related to unrealized gains or losses on operating lease liabilities denominated in currencies other than the functional currency of the right-of-use asset. In June 2016, the FASB issued authoritative guidance related to the measurement of credit losses on financial instruments. This guidance is effective for fiscal years beginning after December 15, 2019, which will be the Company’s first quarter of fiscal 2021. Early adoption is permitted for fiscal periods beginning after December 15, 2018, which will be the Company’s first quarter of fiscal 2020. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures. In January 2017, the FASB issued authoritative guidance to simplify the testing for goodwill impairment by removing step two from the goodwill testing. Under current guidance, if the fair value of a reporting unit is lower than its carrying amount (step one), an entity would calculate an impairment charge by comparing the implied fair value of goodwill with its carrying amount (step two). The implied fair value of goodwill was calculated by deducting the fair value of the assets and liabilities of the respective reporting unit from the reporting unit’s fair value as determined under step one. This guidance instead provides that an impairment charge should be recognized based on the difference between a reporting unit’s fair value and its carrying value. This guidance also does not require a qualitative test to be performed on reporting units with zero or negative carrying amounts. However, entities need to disclose any reporting units with zero or negative carrying amounts that have goodwill and the amount of goodwill allocated to each. This guidance is effective for fiscal years beginning after December 15, 2019, which will be the Company’s first quarter of fiscal 2021, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements or related disclosures. In August 2017, the FASB issued authoritative guidance to better align the results of hedge accounting with an entity’s risk management activities. This guidance updates the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. In October 2018, the FASB clarified the new hedge accounting guidance by allowing the Secured Overnight Financing Rate to be eligible as a U.S. benchmark interest rate for purposes of applying hedge accounting. This guidance is effective for fiscal years beginning after December 15, 2018, which will be the Company’s first quarter of fiscal 2020, and requires a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, with early adoption permitted. The updated presentation and disclosure guidance is required only on a prospective basis. The adoption of this guidance in fiscal 2020 is expected to decrease retained earnings and increase accumulated other comprehensive income (loss) by approximately $2.0 million . Approximately $1.4 million of this gain will be recognized in cost of product sales over the following 12 months, on a pre-tax basis. In August 2018, the FASB issued authoritative guidance to modify the disclosure requirements on fair value measurements. This guidance is effective for fiscal years beginning after December 15, 2019, which will be the Company’s first quarter of fiscal 2021, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its related disclosures. In August 2018, the FASB issued authoritative guidance to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This guidance is effective for fiscal years beginning after December 15, 2020, which will be the Company’s first quarter of fiscal 2022, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its related disclosures. In August 2018, the FASB issued authoritative guidance to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance provides criteria for determining which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The capitalized implementation costs are required to be expensed over the term of the hosting arrangement. The guidance also clarifies the presentation requirements for reporting such costs in the entity’s financial statements. This guidance is effective for fiscal years beginning after December 15, 2019, which will be the Company’s first quarter of fiscal 2021, 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. |
Description of the Business a_3
Description of the Business and Summary of Significant Accounting Policies and Practices (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of useful lives of property and equipment and purchased intangibles | Depreciation and Amortization Depreciation and amortization of property and equipment and purchased intangibles are provided using the straight-line method over the following useful lives: Building and building improvements 10 to 39 years Furniture, fixtures and equipment 2 to 10 years Purchased intangibles 2 to 20 years |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Receivables [Abstract] | |
Schedule of accounts receivable | Accounts receivable is summarized as follows (in thousands): Feb 2, 2019 Feb 3, 2018 Trade $ 314,651 $ 290,478 Royalty 5,992 5,504 Other 9,892 13,233 330,535 309,215 Less allowances: Doubtful accounts 8,540 13,478 Markdowns 1 — 10,777 Sales returns 1 — 24,964 8,540 49,219 $ 321,995 $ 259,996 ______________________________________________________________________ 1 In fiscal 2018, the accounts receivable allowance included allowances for doubtful accounts, wholesale sales returns and wholesale markdowns. In accordance with the new revenue recognition standard adopted in fiscal 2019, wholesale sales returns and wholesale markdowns have been included in accrued expenses. Retail sales returns allowances are included in accrued expenses. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consist of the following (in thousands): Feb 2, 2019 Feb 3, 2018 Raw materials $ 881 $ 604 Work in progress 162 16 Finished goods 467,854 427,684 $ 468,897 $ 428,304 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment is summarized as follows (in thousands): Feb 2, 2019 Feb 3, 2018 Land, buildings and improvements $ 52,039 $ 54,035 Leasehold improvements 387,802 380,234 Furniture, fixtures and equipment 410,518 389,393 Construction in progress 18,844 16,555 Assets under capital leases 19,069 19,560 888,272 859,777 Less accumulated depreciation and amortization 572,714 565,523 $ 315,558 $ 294,254 |
Schedule of impairments to long-lived assets | Impairments to long-lived assets are summarized as follows (in thousands): Feb 2, 2019 Feb 3, 2018 Aggregate carrying value of long-lived assets impaired $ 7,111 $ 8,728 Less asset impairment charges 6,939 8,479 Aggregate remaining fair value of long-lived assets impaired $ 172 $ 249 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of goodwill activity by business segment | Goodwill activity is summarized by business segment as follows (in thousands): Americas Retail Americas Wholesale Europe Asia Total Goodwill balance at January 28, 2017 $ 1,729 $ 9,966 $ 21,472 $ 933 $ 34,100 Adjustments: Acquisition — — — 566 566 Translation adjustments 36 6 3,653 120 3,815 Goodwill balance at February 3, 2018 1,765 9,972 25,125 1,619 38,481 Adjustments: Acquisition — — 857 — 857 Translation adjustments (34 ) (6 ) (2,120 ) (106 ) (2,266 ) Goodwill balance at February 2, 2019 $ 1,731 $ 9,966 $ 23,862 $ 1,513 $ 37,072 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Payables and Accruals [Abstract] | |
Summary of accrued expenses | Accrued expenses are summarized as follows (in thousands): Feb 2, 2019 Feb 3, 2018 Accrued compensation and benefits $ 64,543 $ 73,815 Professional and legal fees 57,401 14,281 Allowance for sales returns 1 33,217 2,917 Sales and use taxes, property taxes and other indirect taxes 32,777 33,390 Allowance for markdowns 1 12,121 — Accrued rent 9,000 8,039 Deferred royalties and other revenue 8,260 7,273 Loyalty programs 5,728 3,816 Construction costs 5,408 3,428 Gift cards 5,376 5,213 Income taxes 4,362 5,186 Advertising 1,503 9,677 Derivative financial instruments 77 16,487 Share repurchase — 6,033 Other 12,619 11,007 $ 252,392 $ 200,562 ______________________________________________________________________ 1 In fiscal 2018, the allowances for doubtful accounts, wholesale sales returns and wholesale markdowns were included in accounts receivable. In fiscal 2019, as a result of the implementation of the revenue recognition guidance, the wholesale sales returns and wholesale markdowns have been included in accrued expenses. |
Borrowings and Capital Lease _2
Borrowings and Capital Lease Obligations (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Debt Disclosure [Abstract] | |
Summary of borrowings and capital lease obligations | Borrowings and capital lease obligations are summarized as follows (in thousands): Feb 2, 2019 Feb 3, 2018 Mortgage debt, maturing monthly through January 2026 $ 19,738 $ 20,323 Capital lease obligations 16,702 18,589 Other 2,887 3,129 39,327 42,041 Less current installments 4,315 2,845 Long-term debt and capital lease obligations $ 35,012 $ 39,196 |
Summary of maturities of debt and capital lease obligations | Maturities of the Company’s debt and capital lease obligations as of February 2, 2019 are as follows (in thousands): Debt Capital Lease Total Fiscal 2020 $ 2,479 $ 1,847 $ 4,326 Fiscal 2021 1,660 2,014 3,674 Fiscal 2022 659 2,042 2,701 Fiscal 2023 682 2,017 2,699 Fiscal 2024 764 1,984 2,748 Thereafter 16,459 6,798 23,257 Total principal payments 22,703 16,702 39,405 Less unamortized debt issuance costs 78 — 78 Total debt and capital lease obligations $ 22,625 $ 16,702 $ 39,327 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of restructuring activities related primarily to severance | The following table summarizes restructuring activities related primarily to severance during fiscal 2017 and fiscal 2018 (in thousands): Total Balance at January 30, 2016 $ — Charges to operations 6,083 Cash payments (6,003 ) Foreign currency and other adjustments 100 Balance at January 28, 2017 $ 180 Cash payments (124 ) Foreign currency and other adjustments (56 ) Balance at February 3, 2018 $ — |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Stockholders' Equity Note [Abstract] | |
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 fiscal 2019 , fiscal 2018 and fiscal 2017 are as follows (in thousands): 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 (575 ) 1,059 (1 ) (1,162 ) (679 ) Reclassification to net earnings for (gains) losses realized — (2,911 ) 16 239 (2,656 ) Net other comprehensive income (loss) (575 ) (1,852 ) 15 (923 ) (3,335 ) Balance at January 28, 2017 $ (158,227 ) $ 5,400 $ — $ (8,562 ) $ (161,389 ) Gains (losses) arising during the period 91,178 (20,408 ) — (1,999 ) 68,771 Reclassification to net loss for losses realized — 414 — 352 766 Net other comprehensive income (loss) 91,178 (19,994 ) — (1,647 ) 69,537 Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance 1 — 225 — (1,435 ) (1,210 ) Balance at February 3, 2018 $ (67,049 ) $ (14,369 ) $ — $ (11,644 ) $ (93,062 ) Gains (losses) arising during the period (52,497 ) 10,962 — 1,516 (40,019 ) Reclassification to net earnings for losses realized — 6,406 — 496 6,902 Net other comprehensive income (loss) (52,497 ) 17,368 — 2,012 (33,117 ) Balance at February 2, 2019 $ (119,546 ) $ 2,999 $ — $ (9,632 ) $ (126,179 ) ______________________________________________________________________ 1 During the fourth quarter of fiscal 2018, the Company early adopted authoritative guidance which addresses certain stranded income tax effects in accumulated other comprehensive loss resulting from the Tax Reform enacted in December 2017. As a result, the Company recorded a cumulative adjustment to increase retained earnings by $1.2 million with a corresponding reduction to accumulated other comprehensive loss related to the Company’s Supplemental Executive Retirement Plan and its interest rate swap designated as a cash flow hedge based in the U.S. |
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 fiscal 2019 , fiscal 2018 and fiscal 2017 are as follows (in thousands): Location of (Gain) Loss Reclassified from Accumulated OCI into Earnings (Loss) Year Ended Year Ended Year Ended Derivative financial instruments designated as cash flow hedges: Foreign exchange currency contracts $ 7,020 $ (14 ) $ (3,518 ) Cost of product sales Foreign exchange currency contracts 201 583 (301 ) Other income (expense) Interest rate swap (103 ) 87 216 Interest expense Less income tax effect (712 ) (242 ) 692 Income tax expense 6,406 414 (2,911 ) Marketable securities: Available-for-sale securities — — 25 Other income (expense) Less income tax effect — — (9 ) Income tax expense — — 16 Defined benefit plans: Net actuarial loss amortization 600 462 341 Other income (expense) 1 Prior service credit amortization (28 ) (27 ) (28 ) Other income (expense) 1 Less income tax effect (76 ) (83 ) (74 ) Income tax expense 496 352 239 Total reclassifications to net earnings (loss) for (gains) losses realized during the period $ 6,902 $ 766 $ (2,656 ) ______________________________________________________________________ 1 During fiscal 2019, in accordance with the adoption of the guidance related to the presentation of net periodic pension costs, reclassification of these items are now included in other income (expense). Refer to Note 2 for further information. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense (benefit) | Income tax expense (benefit) is summarized as follows (in thousands): Year Ended Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Federal: Current $ 16,495 $ 34,181 $ 8,212 Deferred 4,543 21,595 (636 ) State: Current 1,408 1,903 2,537 Deferred 1,532 217 (1,000 ) Foreign: Current 3,385 7,333 17,055 Deferred 2,179 8,943 2,044 Total $ 29,542 $ 74,172 $ 28,212 |
Schedule of effective income tax rate reconciliation | Actual income tax expense differs from expected income tax expense obtained by applying the statutory federal income tax rate to earnings before income taxes as follows: Year Ended Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Computed “expected” tax rate 21.0 % 33.7 % 35.0 % State taxes, net of federal benefit 1.1 % 2.4 % 1.9 % Non-U.S. tax expense higher (lower) than federal statutory tax rate 1 24.2 % (10.5 %) (2.9 %) Tax Reform - repatriation tax adjustment 2,5 (41.8 %) 32.8 % — % Tax Reform - deferred tax adjustment — % 35.4 % — % Cumulative valuation reserve 3 — % — % 12.7 % Valuation reserve 4 0.5 % 12.9 % 10.9 % Unrecognized tax liabilities (benefits) 5 51.3 % 0.8 % 1.0 % Share-based compensation 6 0.2 % 1.5 % — % Net tax settlements — % — % 3.5 % Sale of minority interest investment — % — % (4.3 %) Estimated exit tax charge — % — % 3.5 % Prior year tax adjustments 0.3 % 0.7 % (4.4 %) Non-deductible permanent differences 16.5 % (4.1 %) (4.3 %) Foreign derived intangible income (10.2 %) — % — % Other 0.1 % — % — % Effective tax rate 63.2 % 105.6 % 52.6 % ______________________________________________________________________ 1 The jurisdictional location of pre-tax income (loss) may represent a significant component of the Company’s effective tax rate as income tax rates outside the U.S. are generally lower than the U.S. statutory income tax rate. Furthermore, the impact of changes in the jurisdictional location of pre-tax income (loss) on the Company’s effective tax rate will be greater at lower levels of consolidated pre-tax income (loss). These amounts exclude the impact of net changes in valuation allowances, audit and other adjustments related to the Company’s non-U.S. operations, as they are reported separately in the appropriate corresponding line items in the table above. The impact on the Company’s effective tax rate was primarily due to lower U.S. taxes resulting from the Tax Reform and the mix of earnings in foreign jurisdictions. 2 During fiscal 2018, the Company recognized additional tax expense resulting from the enactment of the Tax Reform to account for the estimated effects of the transitional tax on the deemed repatriation of foreign earnings and reduced deferred tax assets due to lower future U.S. corporate tax rates. During the third quarter of fiscal 2019, the Company completed the preparation of its U.S. federal tax return for fiscal 2018 and concluded, based on the additional information that had become available, that no transition tax was due with respect to the Tax Reform. As a result, during the third quarter of fiscal 2019, the Company reversed a portion of provisional amounts initially recorded during the three months ended February 3, 2018 and recorded a benefit of $19.6 million . 3 Amounts represent valuation reserves resulting from jurisdictions where there have been cumulative net operating losses, limiting the Company’s ability to consider other subjective evidence to continue to recognize the existing deferred tax assets. 4 Amounts relate primarily to valuation reserves on non-cumulative net operating losses or other deferred tax assets arising during the respective period. 5 During the fourth quarter of fiscal 2019, the Company concluded based on additional regulatory guidance issued during the quarter related to the Tax Reform, that the Company would owe transition taxes if proposed legislation that clarifies existing tax regulation with respect to the dividends received deduction calculation is passed into law. As a result, during the three months ended February 2, 2019, the Company recorded additional charges due to the Tax Reform of $25.8 million as an uncertain tax position. 6 During fiscal 2018, the Company adopted authoritative guidance which requires all income tax effects of stock awards (resulting from an increase or decrease in the fair value of an award from grant date to the vesting date) to be recognized in the income statement when the awards vest or are settled. This is a change from previous guidance that required such activity to be recorded in paid-in capital within stockholders’ equity. |
Schedule of total income tax expense (benefit) allocation | Total income tax expense (benefit) is allocated as follows (in thousands): Year Ended Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Operations 1 $ 29,542 $ 74,172 $ 28,212 Stockholders’ equity 1 3,006 (3,173 ) 1,782 Total income tax expense $ 32,548 $ 70,999 $ 29,994 ______________________________________________________________________ 1 During fiscal 2018, the Company adopted authoritative guidance which requires all income tax effects of stock awards (resulting from an increase or decrease in the fair value of an award from grant date to the vesting date) to be recognized in the income statement when the awards vest or are settled. This is a change from previous guidance that required such activity to be recorded in paid-in capital within stockholders’ equity. As a result, the Company recorded tax shortfalls of approximately $0.1 million and $1.3 million in the Company’s income tax expense during fiscal 2019 and 2018, respectively. |
Schedule of tax effects of components of other comprehensive income (loss) | The tax effects of the components of other comprehensive income (loss) are allocated as follows (in thousands): Year Ended Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Derivative financial instruments designated as cash flow hedges $ 2,402 $ (2,738 ) $ (864 ) Marketable securities — — 6 Defined benefit plans 604 (435 ) (21 ) Total income tax expense (benefit) 1 $ 3,006 $ (3,173 ) $ (879 ) ______________________________________________________________________ 1 During the fourth quarter of fiscal 2018, the Company early adopted authoritative guidance which addresses certain stranded income tax effects in accumulated other comprehensive loss resulting from the Tax Reform enacted in December 2017. As a result, the Company recorded a cumulative adjustment to increase retained earnings by $1.2 million with a corresponding reduction to accumulated other comprehensive loss related to the Company’s Supplemental Executive Retirement Plan and its interest rate swap designated as a cash flow hedge based in the U.S. The impact from this reclassification on accumulated other comprehensive income (loss) has been excluded from the amounts provided in this table. |
Schedule of total earnings before income tax expense and noncontrolling interest | Total earnings before income tax expense and noncontrolling interests are comprised of the following (in thousands): Year Ended Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Domestic operations $ 97,885 $ 39,112 $ 32,944 Foreign operations (51,177 ) 31,159 20,666 Earnings before income tax expense and noncontrolling interests $ 46,708 $ 70,271 $ 53,610 |
Schedule of tax effects of temporary differences | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities as of February 2, 2019 and February 3, 2018 are presented below (in thousands): Feb 2, 2019 Feb 3, 2018 Deferred tax assets: Net operating losses $ 23,212 $ 19,859 Defined benefit plans 12,883 13,155 Deferred compensation 9,823 10,721 Rent expense 7,114 7,651 Fixed asset basis 6,638 10,704 Deferred income 4,373 7,141 Accrued bonus 2,208 251 Account receivable/return reserve 2,009 1,926 Bad debt reserve 1,933 2,529 Uniform capitalization 1,419 974 Inventory valuation 1,339 3,005 Lease incentives 1,337 1,814 Other 18,883 25,521 Total deferred tax assets 93,171 105,251 Deferred tax liabilities: Goodwill amortization (2,267 ) (2,303 ) Excess of tax over book depreciation/amortization (101 ) (135 ) Other (769 ) (4,517 ) Valuation allowance (32,810 ) (32,601 ) Net deferred tax assets 1 $ 57,224 $ 65,695 ______________________________________________________________________ 1 As of February 2, 2019 , there were no amounts included for net deferred tax liabilities recorded in other long-term liabilities in the Company’s consolidated balance sheet. There were $2.7 million net deferred tax liabilities recorded in other long-term liabilities in the Company’s consolidated balance sheet at February 3, 2018 . |
Schedule of reconciliation of unrecognized tax benefit | A reconciliation of the beginning and ending amount of gross unrecognized tax benefit (excluding interest and penalties) is as follows (in thousands): Year Ended Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Beginning balance $ 16,771 $ 12,983 $ 12,585 Additions: Tax positions related to the prior year 25,822 3,129 667 Tax positions related to the current year 267 222 106 Reductions: Tax positions related to the prior year (2,934 ) (355 ) (286 ) Tax positions related to the current year (449 ) (303 ) — Settlements — — — Expiration of statutes of limitations — (206 ) — Foreign currency translation (726 ) 1,301 (89 ) Ending balance $ 38,751 $ 16,771 $ 12,983 |
Defined Benefit Plans (Tables)
Defined Benefit Plans (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Defined Benefit Plan [Abstract] | |
Schedule of net periodic defined benefit pension cost and other charges to comprehensive income (loss) and accumulated other comprehensive income (loss) | The components of net periodic defined benefit pension cost to accumulated comprehensive income (loss) for fiscal 2019 related to the Company’s defined benefit plans are as follows (in thousands): Year Ended February 2, 2019 SERP Foreign Pension Plans Total Service cost $ — $ 3,039 $ 3,039 Interest cost 1,887 225 2,112 Expected return on plan assets — (303 ) (303 ) Net amortization of unrecognized prior service credit — (28 ) (28 ) Net amortization of actuarial losses 187 413 600 Net periodic defined benefit pension cost $ 2,074 $ 3,346 $ 5,420 Unrecognized prior service credit charged to comprehensive income (loss) $ — $ (28 ) $ (28 ) Unrecognized net actuarial loss charged to comprehensive income (loss) 187 413 600 Net actuarial gain (losses) 2,787 (1,054 ) 1,733 Foreign currency and other adjustments — 311 311 Related tax impact (686 ) 82 (604 ) Total periodic defined benefit pension cost and other charges to other comprehensive income (loss) and accumulated other comprehensive income (loss) $ 2,288 $ (276 ) $ 2,012 The components of net periodic defined benefit pension cost to accumulated comprehensive income (loss) for fiscal 2018 related to the Company’s defined benefit plans are as follows (in thousands): Year Ended February 3, 2018 SERP Foreign Pension Total Service cost $ — $ 2,500 $ 2,500 Interest cost 1,844 147 1,991 Expected return on plan assets — (244 ) (244 ) Net amortization of unrecognized prior service credit — (27 ) (27 ) Net amortization of actuarial losses 151 311 462 Net periodic defined benefit pension cost $ 1,995 $ 2,687 $ 4,682 Unrecognized prior service credit charged to comprehensive income (loss) $ — $ (27 ) $ (27 ) Unrecognized net actuarial loss charged to comprehensive income (loss) 151 311 462 Net actuarial losses (1,092 ) (1,156 ) (2,248 ) Foreign currency and other adjustments — (269 ) (269 ) Related tax impact 360 75 435 Total periodic defined benefit pension cost and other charges to other comprehensive income (loss) (581 ) (1,066 ) (1,647 ) Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance 1 (1,435 ) — (1,435 ) Total periodic defined benefit pension cost and other charges to accumulated other comprehensive income (loss) $ (2,016 ) $ (1,066 ) $ (3,082 ) ______________________________________________________________________ 1 During the fourth quarter of fiscal 2018, the Company early adopted authoritative guidance which addresses certain stranded income tax effects in accumulated other comprehensive loss resulting from the Tax Reform enacted in December 2017. As a result, the Company recorded a cumulative adjustment to increase retained earnings by $1.4 million with a corresponding reduction to accumulated other comprehensive loss related to the Company’s SERP. The components of net periodic defined benefit pension cost to accumulated comprehensive income (loss) for fiscal 2017 related to the Company’s defined benefit plans are as follows (in thousands): Year Ended January 28, 2017 SERP Foreign Pension Total Service cost $ — $ 1,544 $ 1,544 Interest cost 1,839 87 1,926 Expected return on plan assets — (185 ) (185 ) Net amortization of unrecognized prior service credit — (28 ) (28 ) Net amortization of actuarial losses 155 186 341 Net periodic defined benefit pension cost $ 1,994 $ 1,604 $ 3,598 Unrecognized prior service credit charged to comprehensive income (loss) $ — $ (28 ) $ (28 ) Unrecognized net actuarial loss charged to comprehensive income (loss) 155 186 341 Net actuarial gains (losses) 63 (1,248 ) (1,185 ) Foreign currency and other adjustments — (72 ) (72 ) Related tax impact (84 ) 105 21 Total periodic defined benefit pension cost and other charges to other comprehensive income (loss) and accumulated other comprehensive income (loss) $ 134 $ (1,057 ) $ (923 ) |
Schedule of accumulated other comprehensive income (loss), before tax, that have not yet been recognized in net periodic defined benefit pension cost | Included in accumulated other comprehensive income (loss), before tax, as of February 2, 2019 and February 3, 2018 are the following amounts that have not yet been recognized in net periodic defined benefit pension cost (in thousands): Feb 2, 2019 Feb 3, 2018 SERP Foreign Pension Total SERP Foreign Pension Total Unrecognized prior service credit $ — $ (159 ) $ (159 ) $ — $ (113 ) $ (113 ) Unrecognized net actuarial loss 6,480 5,293 11,773 9,454 4,889 14,343 Total included in accumulated other comprehensive loss $ 6,480 $ 5,134 $ 11,614 $ 9,454 $ 4,776 $ 14,230 |
Schedule of the funded status of the Company's defined benefit plans and the amounts recognized in the Company's consolidated balance sheets | The following table summarizes the funded status of the Company’s defined benefit plans and the amounts recognized in the Company’s consolidated balance sheets (in thousands): Feb 2, 2019 Feb 3, 2018 SERP Foreign Pension Total SERP Foreign Pension Total Projected benefit obligation $ (52,162 ) $ (31,105 ) $ (83,267 ) $ (54,760 ) $ (26,409 ) $ (81,169 ) Plan assets at fair value 1 — 25,358 25,358 — 21,437 21,437 Net liability 2 $ (52,162 ) $ (5,747 ) $ (57,909 ) $ (54,760 ) $ (4,972 ) $ (59,732 ) ______________________________________________________________________ 1 The SERP is a non-qualified pension plan and hence the insurance policies are not considered to be plan assets. Accordingly, the table above does not include the insurance policies with cash surrender values of $61.7 million and $64.5 million as of February 2, 2019 and February 3, 2018 , respectively. 2 The net liability was included in accrued expenses and other long-term liabilities in the Company’s consolidated balance sheets depending on the expected timing of payments. |
Schedule of reconciliation of the changes in the projected benefit obligation | A reconciliation of the changes in the projected benefit obligation for fiscal 2019 and fiscal 2018 is as follows (in thousands): Projected Benefit Obligation SERP Foreign Pension Total Balance at January 28, 2017 $ 53,521 $ 19,986 $ 73,507 Service cost — 2,500 2,500 Interest cost 1,844 147 1,991 Actuarial (gains) losses 1,092 1,156 2,248 Contributions by plan participants — 2,315 2,315 Payments (1,697 ) (1,373 ) (3,070 ) Foreign currency and other adjustments — 1,678 1,678 Balance at February 3, 2018 $ 54,760 $ 26,409 $ 81,169 Service cost — 3,039 3,039 Interest cost 1,887 225 2,112 Actuarial (gains) losses (2,787 ) 1,054 (1,733 ) Contributions by plan participants — 2,310 2,310 Payments (1,698 ) (1,824 ) (3,522 ) Acquisition — 1,539 1,539 Foreign currency and other adjustments — (1,647 ) (1,647 ) Balance at February 2, 2019 $ 52,162 $ 31,105 $ 83,267 |
Schedule of reconciliation of the changes in plan assets for the Foreign Pension Plans | A reconciliation of the changes in plan assets for the Foreign Pension Plans for fiscal 2019 and fiscal 2018 is as follows (in thousands): Plan Assets Balance at January 28, 2017 $ 16,305 Actual return on plan assets 244 Contributions by employer 2,575 Contributions by plan participants 2,315 Payments (1,373 ) Foreign currency and other adjustments 1,371 Balance at February 3, 2018 $ 21,437 Actual return on plan assets 252 Contributions by employer 3,308 Contributions by plan participants 2,310 Payments (1,824 ) Acquisition 1,186 Foreign currency and other adjustments (1,311 ) Balance at February 2, 2019 $ 25,358 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum property and equipment payments under capital leases and non-cancelable operating leases | Future minimum property and equipment lease payments under capital leases and non-cancelable operating leases as of February 2, 2019 are as follows (in thousands): Operating Leases Capital Lease Non-Related Parties Related Parties Total Fiscal 2020 $ 2,966 $ 216,037 $ 4,897 $ 223,900 Fiscal 2021 2,966 181,577 2,492 187,035 Fiscal 2022 2,765 155,700 260 158,725 Fiscal 2023 2,665 129,734 — 132,399 Fiscal 2024 2,535 100,127 — 102,662 Thereafter 7,531 217,832 — 225,363 Total minimum lease payments $ 21,428 $ 1,001,007 $ 7,649 $ 1,030,084 Less interest (4,726 ) Capital lease obligations 16,702 Less current portion (1,847 ) Long-term capital lease obligations $ 14,855 |
Schedule of reconciliation of the total carrying amount of redeemable noncontrolling interests | A reconciliation of the total carrying amount of redeemable noncontrolling interests for fiscal 2019 and fiscal 2018 is as follows (in thousands): Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Beginning balance $ 5,590 $ 4,452 Foreign currency translation adjustment (737 ) 187 Noncontrolling interest capital contribution — 951 Ending balance $ 4,853 $ 5,590 |
Quarterly Information (Unaudi_2
Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of the unaudited quarterly financial information | The following is a summary of the unaudited quarterly financial information for fiscal 2019 and fiscal 2018 (in thousands, except per share data): Quarterly Periods Ended 1 Year Ended February 2, 2019 May 5, Aug 4, Nov 3, Feb 2, Net revenue 2 $ 521,289 $ 645,871 $ 605,407 $ 837,127 Gross profit 173,938 239,431 220,143 306,092 Net earnings (loss) (20,987 ) 25,734 (12,816 ) 25,235 Net earnings (loss) attributable to Guess?, Inc. (21,221 ) 25,530 (13,442 ) 23,232 Net earnings (loss) per common share attributable to common stockholders 3,4,5,6,7,8,9 : Basic $ (0.27 ) $ 0.32 $ (0.17 ) $ 0.29 Diluted $ (0.27 ) $ 0.31 $ (0.17 ) $ 0.28 Quarterly Periods Ended 1 Year Ended February 3, 2018 Apr 29, Jul 29, Oct 28, Feb 3, Net revenue 2 $ 454,345 $ 568,292 $ 548,953 $ 792,164 Gross profit 144,642 198,027 191,109 295,070 Net earnings (21,227 ) 15,881 (1,662 ) 3,107 Net earnings attributable to Guess?, Inc. (21,293 ) 15,219 (2,860 ) 1,040 Net earnings per common share attributable to common stockholders 3,5,6,7,8,9 : Basic $ (0.26 ) $ 0.18 $ (0.04 ) $ (0.01 ) Diluted $ (0.26 ) $ 0.18 $ (0.04 ) $ (0.01 ) ______________________________________________________________________ 1 All fiscal quarters presented consisted of 13 weeks with the exception of the quarter ended February 3, 2018 which consisted of 14 weeks. 2 Net revenue for the quarters in fiscal 2019 reflects the adoption of the new revenue recognition standard and is not presented comparable to the quarters in fiscal 2018. 3 Per common share amounts for the quarters and full years have been calculated separately. Accordingly, quarterly amounts may not add to the annual amount because of differences in the average common shares outstanding during each period. In addition, holders of the Company’s restricted stock awards are not required to participate in losses of the Company. Therefore, in periods in which the Company reported a net loss, such losses were not allocated to these participating securities, and, as a result, basic and diluted net loss per share were the same in those periods. 4 On January 28, 2019, the Company announced the departure of its Chief Executive Officer and the terms of his separation. As a result, the company recorded $5.2 million in severance-related charges during the fourth quarter of fiscal 2019 . These charges are comprised of $2.4 million in cash related future severance payments and $2.8 million in non-cash stock-based compensation expenses representing the accelerated vesting of previously granted stock awards. 5 The Company recorded certain professional service and legal costs and related costs of $3.8 million , $2.0 million , $0.1 million and $0.2 million during the first, second, third and fourth quarters of fiscal 2019, respectively. The Company recorded $0.5 million of certain professional service and legal costs and related costs during the fourth quarter of fiscal 2018 . There were no certain professional service and legal costs and related costs during the first, second and third quarters of fiscal 2018 . 6 The Company recorded net gains on lease terminations of $0.2 million and $0.3 million during the first and fourth quarters of fiscal 2019 , respectively. There were no net gains (losses) on lease terminations recognized during the second or third quarters of fiscal 2019 . During the third and fourth quarters of fiscal 2018, the Company recorded net gains (losses) on lease terminations of $(11.5) million and $0.1 million , respectively. There were no net gains (losses) on lease terminations recognized during the first and second quarters of fiscal 2018 . Refer to Note 1 for further information regarding net gains (losses) on lease terminations. 7 During each of the periods presented, the Company recognized asset impairment charges for certain retail locations resulting from under-performance and expected store closures. The Company recorded asset impairment charges of $0.7 million , $3.0 million , $1.3 million and $1.9 million , respectively, during the first, second, third and fourth quarters of fiscal 2019 , respectively. The Company also recorded asset impairment charges of $2.8 million , $1.2 million , $2.0 million and $2.5 million , respectively, during the first, second, third and fourth quarters of fiscal 2018 . Refer to Note 5 for further detail regarding asset impairment charges. 8 During the third quarter of fiscal 2018, the Company recognized a charge of €37.0 million ( $42.4 million ) related to a fine expected to be imposed on the Company by the European Commission related to alleged violations of European Union competition rules by the Company. In December of fiscal 2019, the European Commission published its findings and levied a total fine of €39.8 million ( $45.6 million ), which the Company paid in the first quarter of fiscal 2020. As a result, during the fourth quarter of fiscal 2019, the Company recorded additional charges of €2.8 million ( $3.2 million ). 9 During the fourth quarter of fiscal 2018, the Company recognized additional tax expense of $47.9 million related to the enactment of the Tax Reform. Of these charges, $24.9 million related to reduction in deferred tax assets due to lower future U.S. corporate tax rates and $23.0 million related to the deemed repatriation of foreign earnings. During the quarter ended November 3, 2018, the Company revised the provisional amounts previously recorded related to the estimated amounts due related to deemed repatriation of foreign earnings, and recorded income tax benefits of $6.3 million . During the third quarter of fiscal 2019, the Company reversed a portion of provisional amounts initially recorded during the three months ended February 3, 2018 and recorded a benefit of $19.6 million . During the fourth quarter of fiscal 2019, the Company concluded based on additional regulatory guidance issued during the quarter, related to the Tax Reform, that the Company would owe transition taxes if proposed legislation that clarifies existing tax regulation with respect to the dividends received deduction calculation is passed into law. As a result, during the three months ended February 2, 2019, the Company recorded additional charges due to the Tax Reform of $25.8 million . Refer to Note 11 for further detail. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Segment Reporting [Abstract] | |
Summary of net revenue, earnings (loss) from operations, capital expenditures and total assets by segment | Segment information is summarized as follows (in thousands): Year Ended Year Ended Year Ended Feb 2, 2019 1 Feb 3, 2018 1 Jan 28, 2017 1 Net revenue: Americas Retail $ 824,674 $ 833,077 $ 935,479 Americas Wholesale 170,812 150,366 146,260 Europe 1,142,768 998,657 788,194 Asia 388,246 308,899 248,601 Licensing 2,3 83,194 72,755 71,919 Total net revenue 2,3 $ 2,609,694 $ 2,363,754 $ 2,190,453 Earnings (loss) from operations: Americas Retail 2,4 $ 27,532 $ (11,096 ) $ (13,752 ) Americas Wholesale 2,4 29,935 25,845 25,007 Europe 4,5 58,298 94,545 65,068 Asia 4 12,365 14,809 (1,392 ) Licensing 2,3,4 72,986 63,538 61,472 Total segment earnings from operations 201,116 187,641 136,403 Corporate overhead 2,4 (96,805 ) (100,434 ) (71,867 ) European Commission fine 6 (45,637 ) — — Asset impairment charges 7 (6,939 ) (8,479 ) (34,385 ) Net gains (losses) on lease terminations 8 477 (11,373 ) 695 Restructuring charges 9 — — (6,083 ) Total earnings from operations 5 $ 52,212 $ 67,355 $ 24,763 Capital expenditures: Americas Retail $ 19,614 $ 16,899 $ 25,881 Americas Wholesale 376 1,303 3,320 Europe 56,792 46,419 42,080 Asia 23,458 12,111 13,869 Licensing — — 20 Corporate overhead 7,877 7,923 5,411 Total capital expenditures $ 108,117 $ 84,655 $ 90,581 ______________________________________________________________________ 1 The Company operates on a 52 /53-week fiscal year calendar, which ends on the Saturday nearest to January 31 of each year. The results for fiscal 2018 included the impact of an additional week which occurred during the fourth quarter ended February 3, 2018. 2 During the first quarter of fiscal 2019, the Company adopted a comprehensive new revenue recognition standard using a modified retrospective method that does not restate prior periods to be comparable to the current period presentation. The adoption of this guidance primarily impacted the presentation of advertising contributions received from the Company’s licensees and the related advertising expenditures incurred by the Company. The adoption of this guidance resulted in an increase in net royalty revenue within the Company’s Licensing segment of $10.7 million , as well as an increase in SG&A expenses in our Americas Retail, Americas Wholesale and Licensing segments as well as corporate overhead of $3.9 million , $1.7 million , $1.1 million and $3.0 million , respectively, during fiscal 2019 compared to the prior year. The net favorable impact on earnings from operations was approximately $1.0 million during fiscal 2019 compared to the prior year. Refer to Note 2 to the Condensed Consolidated Financial Statements for more information regarding the impact from the adoption of this new standard. 3 During the fourth quarter of fiscal 2018, the Company reclassified net royalties received on the Company’s inventory purchases of licensed product from net revenue to cost of product sales. Accordingly, net revenue by geographic area has been adjusted for fiscal 2017 to conform. 4 During fiscal 2019, the Company changed the segment accountability for funds received from licensees on the Company’s purchases of its licensed products. These amounts were treated as a reduction of cost of product sales within the Licensing segment but now are considered in the results of the segments that control the respective purchases for purposes of segment performance evaluation. Accordingly, segment results for fiscal 2018 and fiscal 2017 have been adjusted to conform to the current period presentation. 5 During fiscal 2019, the Company adopted new authoritative guidance which requires that the non-service components of net periodic defined benefit pension cost be presented outside of earnings (loss) from operations. Accordingly, earnings from operations and segment results for fiscal 2018 and fiscal 2017 have been adjusted to conform to the current period presentation. 6 During fiscal 2019, the Company recognized a charge of €39.8 million ( $45.6 million ) for a fine imposed by the European Commission related to alleged violations of European Union competition rules by the Company. The Company paid the full amount of the fine during the first quarter of fiscal 2020. 7 During each of the years presented, the Company recognized asset impairment charges for certain retail locations resulting from under-performance and expected store closures. Refer to Note 5 for more information regarding these asset impairment charges. 8 During fiscal 2019, the Company recorded net gain on lease terminations related primarily to the early termination of certain lease agreements in North America. During fiscal 2018, the Company incurred net losses on lease terminations related primarily to the modification of certain lease agreements held with a common landlord in North America. During fiscal 2017, the Company recorded net gains on lease terminations related primarily to the early termination of certain lease agreements in Europe. Refer to Note 1 for more information regarding the net gains (losses) on lease terminations. 9 Restructuring charges incurred during fiscal 2017 related to plans to better align the Company’s global cost and organizational structure with its current strategic initiatives. Refer to Note 9 for more information regarding these restructuring charges. |
Summary of net revenue and long-lived assets by country | The table below presents information regarding geographic areas in which the Company operated. Net revenue is classified primarily based on the country where the Company’s customer is located (in thousands): Year Ended Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Net product sales: U.S. $ 722,794 $ 709,155 $ 801,623 Italy 304,435 289,981 251,709 Canada 187,367 200,364 217,029 South Korea 162,943 163,382 156,094 Other foreign countries 1,148,961 928,117 692,079 Total product sales 2,526,500 2,290,999 2,118,534 Net royalties 1 83,194 72,755 71,919 Net revenue $ 2,609,694 $ 2,363,754 $ 2,190,453 ______________________________________________________________________ 1 During the fourth quarter of fiscal 2018, the Company reclassified net royalties received on the Company’s inventory purchases of licensed product from net revenue to cost of product sales. Accordingly, net revenue by geographic area has been adjusted for fiscal 2017 to conform to the current period presentation. Long-lived assets by geographic location are as follows: Feb 2, 2019 Feb 3, 2018 Long-lived assets: U.S. $ 111,022 $ 109,943 Italy 30,038 34,884 Canada 13,225 18,845 South Korea 9,437 9,584 Other foreign countries 222,727 187,214 Total long-lived assets $ 386,449 $ 360,470 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
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): Year Ended Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Net earnings (loss) attributable to Guess?, Inc. $ 14,099 $ (7,894 ) $ 22,761 Less net earnings attributable to nonvested restricted stockholders 756 764 527 Net earnings (loss) attributable to common stockholders $ 13,343 $ (8,658 ) $ 22,234 Weighted average common shares used in basic computations 80,146 82,189 83,666 Effect of dilutive securities: Stock options and restricted stock units 1 1,443 — 163 Weighted average common shares used in diluted computations 81,589 82,189 83,829 Net earnings (loss) per common share attributable to common stockholders: Basic $ 0.17 $ (0.11 ) $ 0.27 Diluted $ 0.16 $ (0.11 ) $ 0.27 Dividends declared per common share $ 0.90 $ 0.90 $ 0.90 ______________________________________________________________________ 1 For fiscal 2018, there were 652,494 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-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
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 fiscal 2019 , fiscal 2018 and fiscal 2017 (in thousands): Year Ended Year Ended Year Ended Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Stock options $ 2,563 $ 2,345 $ 2,219 Stock awards/units 17,187 16,347 14,544 ESPP 223 160 145 Total share-based compensation expense $ 19,973 $ 18,852 $ 16,908 |
Schedule of stock option activity under all of the Company's stock plans | The following table summarizes the stock option activity under all of the Company’s stock plans during fiscal 2019 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Options outstanding at February 3, 2018 3,912,412 $ 20.33 Granted 431,371 $ 20.74 Exercised (553,700 ) $ 16.16 Forfeited (143,899 ) $ 18.44 Expired (65,275 ) $ 41.71 Options outstanding at February 2, 2019 3,580,909 $ 20.71 6.11 $ 7,698 Exercisable at February 2, 2019 2,499,944 $ 23.18 5.16 $ 2,771 |
Schedule of weighted average assumptions used for stock option grants | The fair value of each stock option was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted average assumptions used for grants during fiscal 2019 , fiscal 2018 and fiscal 2017 : Year Ended Year Ended Year Ended Valuation Assumptions Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Risk-free interest rate 2.3 % 1.5 % 1.0 % Expected stock price volatility 46.1 % 37.1 % 35.4 % Expected dividend yield 4.3 % 8.0 % 4.8 % Expected life of stock options 4.4 years 4.4 years 4.2 years |
Schedule of nonvested stock awards/units activity under all of the Company's stock plans | The following table summarizes the nonvested stock awards/units activity under all of the Company’s stock plans during fiscal 2019 : Number of Awards/Units Weighted Average Grant Date Fair Value Nonvested at February 3, 2018 2,464,566 $ 13.66 Granted 1,203,501 $ 20.81 Vested (695,024 ) $ 15.65 Forfeited (340,874 ) $ 16.45 Nonvested at February 2, 2019 2,632,169 $ 16.04 |
Schedule of activity for nonvested performance-based units and nonvested market-based units | The following table summarizes the activity for nonvested performance-based units and nonvested market-based units included in the table above during fiscal 2019 : Performance-Based Units Market-Based Units Number of Units Weighted Number of Units Weighted Average Grant Date Fair Value Nonvested at February 3, 2018 1,300,921 $ 14.01 388,477 $ 12.28 Granted 496,500 $ 21.84 129,932 $ 20.28 Vested (259,112 ) $ 14.38 — $ — Forfeited (167,079 ) $ 16.78 — $ — Nonvested at February 2, 2019 1,371,230 $ 16.44 518,409 $ 14.28 |
Schedule of assumptions used for market-based nonvested stock units | The fair value of each market-based nonvested stock unit was estimated on the grant date using the Monte Carlo simulation with the following assumptions used for the grants during fiscal 2019 , fiscal 2018 and fiscal 2017 : Year Ended Year Ended Year Ended Valuation Assumptions Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Risk-free interest rate 2.6 % 1.4 % 0.9 % Expected stock price volatility 42.1 % 39.7 % 36.2 % Expected dividend yield — % — % — % Expected life of market-based awards 2.6 years 2.8 years 2.8 years |
Schedule of weighted average assumptions used for ESPP | The fair value of stock compensation expense associated with the Company’s ESPP was estimated on the date of grant using the Black-Scholes option-pricing valuation model with the following weighted average assumptions used for grants during fiscal 2019 , fiscal 2018 and fiscal 2017 . Year Ended Year Ended Year Ended Valuation Assumptions Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Risk-free interest rate 2.0 % 1.0 % 0.3 % Expected stock price volatility 59.1 % 45.8 % 41.1 % Expected dividend yield 4.6 % 7.6 % 6.2 % Expected life of ESPP options 3 months 3 months 3 months |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
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 February 2, 2019 and February 3, 2018 (in thousands): Fair Value Measurements at Feb 2, 2019 Fair Value Measurements at Feb 3, 2018 Recurring Fair Value Measures Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Foreign exchange currency contracts $ — $ 4,690 $ — $ 4,690 $ — $ 51 $ — $ 51 Interest rate swap — 1,033 — 1,033 — 1,460 — $ 1,460 Total $ — $ 5,723 $ — $ 5,723 $ — $ 1,511 $ — $ 1,511 Liabilities: Foreign exchange currency contracts $ — $ 77 $ — $ 77 $ — $ 18,089 $ — $ 18,089 Deferred compensation obligations — 14,405 — 14,405 — 13,476 — 13,476 Total $ — $ 14,482 $ — $ 14,482 $ — $ 31,565 $ — $ 31,565 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of fair value of derivative instruments in the consolidated balance sheets | The fair value of derivative instruments in the consolidated balance sheets as of February 2, 2019 and February 3, 2018 is as follows (in thousands): Derivative Balance Sheet Location Fair Value at Feb 2, 2019 Fair Value at Feb 3, 2018 ASSETS: Derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange currency contracts Other current assets/ Other assets $ 4,058 $ 41 Interest rate swap Other assets 1,033 1,460 Total derivatives designated as hedging instruments 5,091 1,501 Derivatives not designated as hedging instruments: Foreign exchange currency contracts Other current assets 632 10 Total $ 5,723 $ 1,511 LIABILITIES: Derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange currency contracts Accrued expenses/ Other long-term liabilities $ 77 $ 13,789 Derivatives not designated as hedging instruments: Foreign exchange currency contracts Accrued expenses — 4,300 Total $ 77 $ 18,089 |
Summary of gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in accumulated other comprehensive income (loss) and net earnings (loss) | The following table summarizes the gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in accumulated other comprehensive income (loss) and net earnings (loss) for fiscal 2019 , fiscal 2018 and fiscal 2017 (in thousands): Year Ended February 2, 2019 Gain (Loss) Recognized in OCI Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings 1 Gain (Loss) Reclassified from Accumulated OCI into Earnings Derivatives designated as cash flow hedges: Foreign exchange currency contracts $ 12,973 Cost of product sales $ (7,020 ) Foreign exchange currency contracts 2 Other income (expense) (201 ) Interest rate swap (324 ) Interest expense 103 Year Ended February 3, 2018 Gain (Loss) Recognized in OCI Location of Gain (Loss) Reclassified from Accumulated OCI into Loss 1 Gain (Loss) Reclassified from Accumulated OCI into Loss Loss Reclassified from Accumulated OCI to Retained Earnings 2 Derivatives designated as cash flow hedges: Foreign exchange currency contracts $ (22,497 ) Cost of product sales $ 14 $ — Foreign exchange currency contracts (1,163 ) Other income (expense) (583 ) — Interest rate swap 272 Interest expense (87 ) (225 ) Year Ended January 28, 2017 Gain Recognized in OCI Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings 1 Gain (Loss) Reclassified from Accumulated OCI into Earnings Derivatives designated as cash flow hedges: Foreign exchange currency contracts $ — Cost of product sales $ 3,518 Foreign exchange currency contracts 227 Other income (expense) 301 Interest rate swap 660 Interest expense (216 ) ________________________________________________________________________ 1 The Company recognized gains of $3.5 million , $ 2.7 million and $ 0.9 million resulting from the ineffective portion related to foreign exchange currency contracts in interest income during fiscal 2019 , fiscal 2018 and fiscal 2017 , respectively. There was no ineffectiveness recognized related to the interest rate swap during fiscal 2019 , fiscal 2018 , or fiscal 2017. 2 During the fourth quarter of fiscal 2018, the Company early adopted authoritative guidance which addresses certain stranded income tax effects in accumulated other comprehensive loss resulting from the Tax Reform enacted in December 2017. As a result, the Company recorded a cumulative adjustment to reduce retained earnings by $0.2 million with a corresponding increase to accumulated other comprehensive income (loss) related to the Company’s interest rate swap designated as a cash flow hedge . |
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): Year Ended Feb 2, 2019 Year Ended Feb 3, 2018 Beginning balance gain (loss) $ (14,369 ) $ 5,400 Net gains (losses) from changes in cash flow hedges 10,962 (20,408 ) Net losses reclassified to earnings (loss) 6,406 414 Net losses reclassified to retained earnings 1 — 225 Ending balance gain (loss) $ 2,999 $ (14,369 ) ______________________________________________________________________ 1 During the fourth quarter of fiscal 2018, the Company early adopted authoritative guidance which addresses certain stranded income tax effects in accumulated other comprehensive loss resulting from the Tax Reform enacted in December 2017. As a result, the Company recorded a cumulative adjustment to reduce retained earnings by $0.2 million with a corresponding increase to accumulated other comprehensive income (loss) related to the Company’s interest rate swap designated as a cash flow hedge |
Summary of gains (loss) before taxes recognized on the derivative instruments not designated as hedging instruments in other income and expense | The following table summarizes the gains (losses) before taxes recognized on the derivative instruments not designated as hedging instruments in other income and expense for fiscal 2019 , fiscal 2018 and fiscal 2017 (in thousands): Location of Gain (Loss) Recognized in Earnings (Loss) Gain (Loss) Recognized in Earnings (Loss) Year Ended Feb 2, 2019 Year Ended Feb 3, 2018 Year Ended Jan 28, 2017 Derivatives not designated as hedging instruments: Foreign exchange currency contracts Other income (expense) $ 6,785 $ (10,511 ) $ 2,427 Interest rate swap Other income (expense) — — 38 |
Description of the Business a_4
Description of the Business and Summary of Significant Accounting Policies and Practices - Business Segment Reporting Narrative (Details) | 12 Months Ended |
Feb. 02, 2019segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Reportable Segments | 5 |
Description of the Business a_5
Description of the Business and Summary of Significant Accounting Policies and Practices - Revenue Recognition (Details) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019USD ($)subsidiary | Feb. 03, 2018USD ($) | Jan. 28, 2017USD ($) | |
Products Transferred At A Point In Time | |||
Percentage of receivables | 49.00% | ||
Payment period | 1 year | ||
Gift Cards | |||
Number of subsidiaries that issue gift cards | subsidiary | 1 | ||
Net revenue | $ 2,609,694 | $ 2,363,754 | $ 2,190,453 |
Gift cards | $ 5,376 | 5,213 | |
Loyalty Programs | |||
Expiration period of unredeemed points (in months) | 6 months | ||
Expiration period of unredeemed awards (in months) | 2 months | ||
Decrease in net revenue | $ (1,700) | 300 | 700 |
Intellectual Property Transferred Over Time | |||
Deferred royalties, current | $ 12,121 | 0 | |
Europe | |||
Products Transferred At A Point In Time | |||
Percentage of receivables | 61.00% | ||
U.S. retail business | |||
Gift Cards | |||
Gift card breakage rate (as a percent) | 6.30% | ||
Canadian retail business | |||
Gift Cards | |||
Gift card breakage rate (as a percent) | 5.50% | ||
Accrued expenses | |||
Sales Return Allowances | |||
Allowance for sales returns | $ 33,200 | 2,900 | |
Gift Cards | |||
Gift cards | 5,400 | 5,200 | |
Inventories | |||
Sales Return Allowances | |||
Cost of sales returns | 11,900 | ||
Other Current Assets | |||
Sales Return Allowances | |||
Cost of sales returns | 13,000 | ||
Accounts Receivable | |||
Sales Return Allowances | |||
Allowance for sales returns | 25,000 | ||
Allowance For Markdowns | Accrued expenses | |||
Markdown Allowances | |||
Allowance for markdowns | 12,100 | 10,800 | |
Gift Card Breakage | |||
Gift Cards | |||
Net revenue | 700 | 700 | 800 |
Loyalty Programs | |||
Intellectual Property Transferred Over Time | |||
Deferred royalties, current | 5,728 | 3,816 | |
Royalties | |||
Gift Cards | |||
Net revenue | 83,194 | 72,755 | 71,919 |
Intellectual Property Transferred Over Time | |||
Net royalties recognized | 13,000 | 12,000 | 13,900 |
Royalties | Accrued expenses | |||
Intellectual Property Transferred Over Time | |||
Deferred royalties, current | 6,400 | 6,800 | |
Royalties | Other long-term liabilities | |||
Intellectual Property Transferred Over Time | |||
Deferred royalties, noncurrent | $ 15,500 | 12,800 | |
Minimum | Royalties | |||
Products Transferred At A Point In Time | |||
Payment period | 3 years | ||
Maximum | Royalties | |||
Products Transferred At A Point In Time | |||
Payment period | 10 years | ||
Selling, general and administrative expenses | |||
Clarification of Certain Costs and Expenses | |||
Distribution costs | $ 55,700 | $ 34,200 | $ 22,600 |
Description of the Business a_6
Description of the Business and Summary of Significant Accounting Policies and Practices - Advertising and Marketing Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Advertising and marketing expense | $ 56.8 | $ 36.3 | $ 37.1 |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Advertising and marketing expense | $ 9.6 |
Description of the Business a_7
Description of the Business and Summary of Significant Accounting Policies and Practices - Foreign Currency (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Variable Interest Entity [Line Items] | ||||
Foreign currency translation adjustment | $ 52,733 | $ (93,416) | $ 2,632 | |
Accumulated foreign currency translation loss | (853,645) | (933,475) | (980,994) | $ (1,031,293) |
Net foreign currency transaction gains (losses) | (9,600) | (5,900) | $ 3,600 | |
Foreign Currency Translation Adjustment | ||||
Variable Interest Entity [Line Items] | ||||
Accumulated foreign currency translation loss | $ 124,000 | $ 71,300 |
Description of the Business a_8
Description of the Business and Summary of Significant Accounting Policies and Practices - Concentration of Credit Risk (Details) | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Two largest wholesale customers | Customer Concentration Risk | Net revenue | |||
Concentration Risk [Line Items] | |||
Percentage of consolidated net revenue accounted for by wholesale customers that represent concentration of risk | 2.40% | 2.20% | 2.70% |
Description of the Business a_9
Description of the Business and Summary of Significant Accounting Policies and Practices - Depreciation and Amortization (Details) | 12 Months Ended |
Feb. 02, 2019 | |
Purchased intangibles | Minimum | |
Summary of Significant Accounting Policies | |
Purchased intangibles, useful life | 2 years |
Purchased intangibles | Maximum | |
Summary of Significant Accounting Policies | |
Purchased intangibles, useful life | 20 years |
Building and building improvements | Minimum | |
Summary of Significant Accounting Policies | |
Property and equipment, useful life | 10 years |
Building and building improvements | Maximum | |
Summary of Significant Accounting Policies | |
Property and equipment, useful life | 39 years |
Furniture, fixtures and equipment | Minimum | |
Summary of Significant Accounting Policies | |
Property and equipment, useful life | 2 years |
Furniture, fixtures and equipment | Maximum | |
Summary of Significant Accounting Policies | |
Property and equipment, useful life | 10 years |
Description of the Business _10
Description of the Business and Summary of Significant Accounting Policies and Practices - Cash and Cash Equivalents and Long-Lived Assets (Details) | 12 Months Ended |
Feb. 02, 2019 | |
Long-Lived Assets | |
Period of time new regular retail locations in penetrated markets would need to be opened to be considered for impairment | 1 year |
Description of the Business _11
Description of the Business and Summary of Significant Accounting Policies and Practices - Other Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 02, 2019 | Jan. 28, 2017 | |
Sale of minority interest equity holding in privately-held boutique apparel company | ||
Net proceeds from sale of the Company's minority interest equity holding in a privately-held boutique apparel company | $ 34.8 | |
Other income/expense | ||
Sale of minority interest equity holding in privately-held boutique apparel company | ||
Gain from sale of the Company's minority interest equity holding in a privately-held boutique apparel company | $ 22.3 | |
Privately-Held Apparel Company | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in company | $ 8 | |
Minority interest percentage held | 30.00% |
Description of the Business _12
Description of the Business and Summary of Significant Accounting Policies and Practices - Net Gains (Losses) on Lease Terminations (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Net (gains) losses on lease terminations | |||||||||||
Net (gains) losses on lease terminations | $ (300,000) | $ 0 | $ 0 | $ (200,000) | $ (100,000) | $ 11,500,000 | $ 0 | $ 0 | $ (477,000) | $ 11,373,000 | $ (695,000) |
Europe | |||||||||||
Net (gains) losses on lease terminations | |||||||||||
Net (gains) losses on lease terminations | (1,000,000) | $ (700,000) | |||||||||
Lease modification with a common landlord | North America | |||||||||||
Net (gains) losses on lease terminations | |||||||||||
Net (gains) losses on lease terminations | 12,400,000 | ||||||||||
Upfront payment related to lease modification | 22,000,000 | ||||||||||
Advanced rent payments | $ 9,600,000 | $ 9,600,000 |
New Accounting Guidance (Detail
New Accounting Guidance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Feb. 01, 2020 | Feb. 04, 2018 | Jan. 29, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative adjustment of new accounting pronouncement | $ (5,829) | $ 0 | ||||
Net revenue | $ 2,609,694 | $ 2,363,754 | $ 2,190,453 | |||
Selling, general and administrative expenses | (835,293) | (741,641) | (680,504) | |||
Other income | 6,591 | (1,241) | (28,854) | |||
Accounting Standards Update 2017-07 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Selling, general and administrative expenses | 2,200 | 2,100 | ||||
Other income | $ 2,200 | $ 2,100 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net revenue | 10,700 | |||||
Selling, general and administrative expenses | 9,600 | |||||
Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative adjustment of new accounting pronouncement | (5,829) | (942) | ||||
Retained Earnings | Accounting Standards Update 2014-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative adjustment of new accounting pronouncement | $ (5,800) | |||||
Retained Earnings | Accounting Standards Update 2017-12 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative adjustment of new accounting pronouncement | 2,000 | |||||
Accumulated Other Comprehensive Loss | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative adjustment of new accounting pronouncement | $ 1,210 | |||||
Accumulated Other Comprehensive Loss | Accounting Standards Update 2017-12 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative adjustment of new accounting pronouncement | $ 2,000 | |||||
Cost of product sales | Scenario, Forecast | Accounting Standards Update 2017-12 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative adjustment of new accounting pronouncement | $ 1,400 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 |
Accounts receivable | ||||
Accounts receivable, gross | $ 330,535 | $ 309,215 | ||
Allowances | 53,878 | 52,136 | $ 37,645 | $ 35,994 |
Accounts receivable, net | 321,995 | 259,996 | ||
Trade receivables | ||||
Accounts receivable | ||||
Accounts receivable, gross | 314,651 | 290,478 | ||
Royalty receivables | ||||
Accounts receivable | ||||
Accounts receivable, gross | 5,992 | 5,504 | ||
Other receivables | ||||
Accounts receivable | ||||
Accounts receivable, gross | 9,892 | 13,233 | ||
Allowance for doubtful accounts | ||||
Accounts receivable | ||||
Allowances | 8,540 | 13,478 | ||
Markdowns | ||||
Accounts receivable | ||||
Allowances | 0 | 10,777 | ||
Sales returns | ||||
Accounts receivable | ||||
Allowances | 0 | 24,964 | ||
Total Allowances | ||||
Accounts receivable | ||||
Allowances | $ 8,540 | $ 49,219 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 881 | $ 604 |
Work in progress | 162 | 16 |
Finished goods | 467,854 | 427,684 |
Inventories | 468,897 | 428,304 |
Allowance to write down inventories to the lower of cost or net realizable value | $ 31,800 | $ 30,800 |
Property and Equipment - (Detai
Property and Equipment - (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Property and equipment | ||
Property and equipment, gross | $ 888,272 | $ 859,777 |
Less accumulated depreciation and amortization | 572,714 | 565,523 |
Property and equipment, net | 315,558 | 294,254 |
Land, buildings and improvements | ||
Property and equipment | ||
Property and equipment, gross | 52,039 | 54,035 |
Leasehold improvements | ||
Property and equipment | ||
Property and equipment, gross | 387,802 | 380,234 |
Furniture, fixtures and equipment | ||
Property and equipment | ||
Property and equipment, gross | 410,518 | 389,393 |
Construction in progress | ||
Property and equipment | ||
Property and equipment, gross | 18,844 | 16,555 |
Assets under capital leases | ||
Property and equipment | ||
Property and equipment, gross | 19,069 | 19,560 |
Less accumulated depreciation and amortization | $ 3,100 | $ 900 |
Property and Equipment - Impair
Property and Equipment - Impairment (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 02, 2019USD ($) | Nov. 03, 2018USD ($) | Aug. 04, 2018USD ($) | May 05, 2018USD ($) | Feb. 03, 2018USD ($) | Oct. 28, 2017USD ($) | Jul. 29, 2017USD ($) | Apr. 29, 2017USD ($) | Feb. 02, 2019USD ($)retail_location | Feb. 03, 2018USD ($)retail_location | Jan. 28, 2017USD ($) | |
Impairment to long-lived assets | |||||||||||
Aggregate carrying value of long-lived assets impaired | $ 7,111 | $ 8,728 | $ 7,111 | $ 8,728 | |||||||
Less impairment charges | 1,900 | $ 1,300 | $ 3,000 | $ 700 | 2,500 | $ 2,000 | $ 1,200 | $ 2,800 | 6,939 | 8,479 | |
Aggregate remaining fair value of long-lived assets impaired | $ 172 | $ 249 | $ 172 | $ 249 | |||||||
Number of retail locations tested for impairment | retail_location | 128 | 233 | |||||||||
Number of retail locations impaired | retail_location | 35 | 99 | |||||||||
Retail locations | North America | |||||||||||
Impairment to long-lived assets | |||||||||||
Less impairment charges | $ 6,900 | $ 8,500 | $ 34,400 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) | 12 Months Ended | |
Feb. 02, 2019USD ($)retail_locationlicensee | Feb. 03, 2018USD ($)retail_locationlicensee | |
Goodwill | ||
Goodwill at the beginning of the period | $ 38,481,000 | $ 34,100,000 |
Adjustments: | ||
Acquisition | 857,000 | 566,000 |
Translation adjustments | (2,266,000) | 3,815,000 |
Goodwill at the end of the period | 37,072,000 | 38,481,000 |
Accumulated impairment related to goodwill | 0 | |
Other intangible assets | ||
Gross intangible assets | 34,200,000 | 33,600,000 |
Accumulated amortization of intangible assets with finite useful lives | 27,300,000 | 27,600,000 |
Amortization expense over the next five years | ||
Fiscal 2020 | 1,700,000 | |
Fiscal 2021 | 1,300,000 | |
Fiscal 2022 | 1,000,000 | |
Fiscal 2023 | 800,000 | |
Fiscal 2024 | 500,000 | |
Thereafter | 1,600,000 | |
Americas Retail | ||
Goodwill | ||
Goodwill at the beginning of the period | 1,765,000 | 1,729,000 |
Adjustments: | ||
Acquisition | 0 | 0 |
Translation adjustments | (34,000) | 36,000 |
Goodwill at the end of the period | 1,731,000 | 1,765,000 |
Americas Wholesale | ||
Goodwill | ||
Goodwill at the beginning of the period | 9,972,000 | 9,966,000 |
Adjustments: | ||
Acquisition | 0 | 0 |
Translation adjustments | (6,000) | 6,000 |
Goodwill at the end of the period | 9,966,000 | 9,972,000 |
Europe | ||
Goodwill | ||
Goodwill at the beginning of the period | 25,125,000 | 21,472,000 |
Adjustments: | ||
Acquisition | 857,000 | 0 |
Translation adjustments | (2,120,000) | 3,653,000 |
Goodwill at the end of the period | 23,862,000 | 25,125,000 |
Asia | ||
Goodwill | ||
Goodwill at the beginning of the period | 1,619,000 | 933,000 |
Adjustments: | ||
Acquisition | 0 | 566,000 |
Translation adjustments | (106,000) | 120,000 |
Goodwill at the end of the period | 1,513,000 | 1,619,000 |
Asia | Acquisition of retail location from the Company's licensees | ||
Adjustments: | ||
Acquisition | $ 900,000 | $ 600,000 |
Number of retail locations acquired | retail_location | 10 | 14 |
Number of licensees that sold retail locations to the Company | licensee | 1 | 3 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Accrued Expenses [Line Items] | ||
Accrued compensation and benefits | $ 64,543 | $ 73,815 |
Professional and legal fees | 57,401 | 14,281 |
Sales and use taxes, property taxes and other indirect taxes | 32,777 | 33,390 |
Accrued rent | 9,000 | 8,039 |
Contract with customer, liabilities | 12,121 | 0 |
Construction costs | 5,408 | 3,428 |
Gift cards | 5,376 | 5,213 |
Income taxes | 4,362 | 5,186 |
Advertising | 1,503 | 9,677 |
Derivative financial instruments | 77 | 16,487 |
Share repurchase | 0 | 6,033 |
Other | 12,619 | 11,007 |
Total accrued expenses | 252,392 | 200,562 |
Allowance For Markdowns | ||
Accrued Expenses [Line Items] | ||
Allowance for sales returns | 33,217 | 2,917 |
Deferred Royalties And Other Revenue | ||
Accrued Expenses [Line Items] | ||
Contract with customer, liabilities | 8,260 | 7,273 |
Loyalty Programs | ||
Accrued Expenses [Line Items] | ||
Contract with customer, liabilities | $ 5,728 | $ 3,816 |
Borrowings and Capital Lease _3
Borrowings and Capital Lease Obligations (Details) - USD ($) | Feb. 16, 2016 | Jun. 23, 2015 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Feb. 03, 2019 |
Borrowings and capital lease obligations | ||||||
Mortgage debt, maturing monthly through January 2026 | $ 19,738,000 | $ 20,323,000 | ||||
Capital lease obligations | 16,702,000 | 18,589,000 | ||||
Other | 2,887,000 | 3,129,000 | ||||
Total debt and capital lease obligations | 39,327,000 | 42,041,000 | ||||
Less current installments | 4,315,000 | 2,845,000 | ||||
Long-term debt and capital lease obligations | 35,012,000 | 39,196,000 | ||||
Mortgage Debt | ||||||
Mortgage debt, maturing monthly through January 2026 | 19,738,000 | 20,323,000 | ||||
Debt issuance costs | 78,000 | |||||
Capital Lease Obligations | ||||||
Capital lease obligations incurred | 1,172,000 | 18,502,000 | $ 0 | |||
Europe | Foreign line of credit | ||||||
Line of Credit Facility [Abstract] | ||||||
Current borrowing capacity | 144,000,000 | |||||
Credit Facility, outstanding amount | $ 0 | |||||
Europe | Foreign line of credit | Minimum | ||||||
Line of Credit Facility [Abstract] | ||||||
Interest rate (as a percent) | 1.10% | |||||
Europe | Foreign line of credit | Maximum | ||||||
Line of Credit Facility [Abstract] | ||||||
Interest rate (as a percent) | 4.60% | |||||
Cash flow hedges | Interest rate swap | Derivatives designated as hedging instruments | ||||||
Mortgage Debt | ||||||
Fixed rate of interest rate swap derivative (as a percent) | 3.06% | |||||
Mortgage debt | Building | U.S. | ||||||
Borrowings and capital lease obligations | ||||||
Mortgage debt, maturing monthly through January 2026 | $ 21,500,000 | $ 19,700,000 | 20,300,000 | |||
Mortgage Debt | ||||||
Debt maturity period (in years) | 10 years | |||||
Mortgage debt, maturing monthly through January 2026 | $ 21,500,000 | 19,700,000 | 20,300,000 | |||
Debt amortization period (in years) | 25 years | |||||
Debt issuance costs | $ 100,000 | 100,000 | ||||
Mortgage debt | Building | U.S. | LIBOR | ||||||
Mortgage Debt | ||||||
Interest rate margin (as a percent) | 1.50% | |||||
Mortgage debt | Building | U.S. | Interest rate swap | ||||||
Mortgage Debt | ||||||
Fair value of cash flow hedge interest rate swap asset | $ 1,000,000 | 1,500,000 | ||||
Mortgage debt | Building | Cash flow hedges | U.S. | Interest rate swap | Derivatives designated as hedging instruments | ||||||
Mortgage Debt | ||||||
Fixed rate of interest rate swap derivative (as a percent) | 3.06% | |||||
Capital lease obligation | Computer hardware and software | ||||||
Borrowings and capital lease obligations | ||||||
Capital lease obligations | 2,000,000 | 1,300,000 | ||||
Capital Lease Obligations | ||||||
Capital lease obligations incurred | 1,200,000 | 1,500,000 | ||||
Capital lease obligation | Equipment | Netherlands | ||||||
Borrowings and capital lease obligations | ||||||
Capital lease obligations | $ 14,700,000 | 17,300,000 | ||||
Capital Lease Obligations | ||||||
Capital lease obligations incurred | $ 17,000,000 | |||||
Effective interest rate on capital lease obligation | 6.00% | |||||
Credit Facility | ||||||
Line of Credit Facility [Abstract] | ||||||
Credit Facility, outstanding amount | $ 0 | |||||
Percentage of borrowings exceeding borrowing base that require the Company to comply with a fixed charge coverage ratio on a trailing four-quarter basis | 80.00% | |||||
Credit Facility | Revolving Credit Facility | ||||||
Mortgage Debt | ||||||
Debt maturity period (in years) | 5 years | |||||
Line of Credit Facility [Abstract] | ||||||
Maximum borrowing capacity | $ 150,000,000 | |||||
Current borrowing capacity | $ 127,000,000 | |||||
Credit Facility | Accordion feature | ||||||
Line of Credit Facility [Abstract] | ||||||
Maximum borrowing capacity | 150,000,000 | |||||
Credit Facility | U.S. line of credit | Base rate | Minimum | ||||||
Mortgage Debt | ||||||
Interest rate margin (as a percent) | 0.25% | |||||
Credit Facility | U.S. line of credit | Base rate | Maximum | ||||||
Mortgage Debt | ||||||
Interest rate margin (as a percent) | 0.75% | |||||
Credit Facility | U.S. line of credit | LIBOR | ||||||
Line of Credit Facility [Abstract] | ||||||
Interest rate margin added to respective base rate | 1.00% | |||||
Credit Facility | U.S. line of credit | LIBOR | Minimum | ||||||
Mortgage Debt | ||||||
Interest rate margin (as a percent) | 1.25% | |||||
Credit Facility | U.S. line of credit | LIBOR | Maximum | ||||||
Mortgage Debt | ||||||
Interest rate margin (as a percent) | 1.75% | |||||
Credit Facility | U.S. line of credit | Federal funds rate | ||||||
Line of Credit Facility [Abstract] | ||||||
Interest rate margin added to respective base rate | 0.50% | |||||
Credit Facility | Standby letters of credit | ||||||
Line of Credit Facility [Abstract] | ||||||
Letters of credit outstanding | $ 2,000,000 | |||||
Credit Facility | Documentary letters of credit | ||||||
Line of Credit Facility [Abstract] | ||||||
Letters of credit outstanding | $ 0 | |||||
Credit Facility | Canada | Foreign line of credit | ||||||
Line of Credit Facility [Abstract] | ||||||
Maximum borrowing capacity | $ 50,000,000 | |||||
Credit Facility | Canada | Foreign line of credit | Prime rate | Minimum | ||||||
Mortgage Debt | ||||||
Interest rate margin (as a percent) | 0.25% | |||||
Credit Facility | Canada | Foreign line of credit | Prime rate | Maximum | ||||||
Mortgage Debt | ||||||
Interest rate margin (as a percent) | 0.75% | |||||
Credit Facility | Canada | Foreign line of credit | Canadian BA rate | ||||||
Line of Credit Facility [Abstract] | ||||||
Interest rate margin added to respective base rate | 1.00% | |||||
Credit Facility | Canada | Foreign line of credit | Canadian BA rate | Minimum | ||||||
Mortgage Debt | ||||||
Interest rate margin (as a percent) | 1.25% | |||||
Credit Facility | Canada | Foreign line of credit | Canadian BA rate | Maximum | ||||||
Mortgage Debt | ||||||
Interest rate margin (as a percent) | 1.75% | |||||
Credit Facility | Canada | Foreign line of credit | Bank of Canada overnight rate | ||||||
Line of Credit Facility [Abstract] | ||||||
Interest rate margin added to respective base rate | 0.50% | |||||
Multicurrency Borrowing Agreement | Subsequent events | ||||||
Line of Credit Facility [Abstract] | ||||||
Maximum borrowing capacity | $ 20,000,000 |
Borrowings and Capital Lease _4
Borrowings and Capital Lease Obligations Debt Maturities (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Debt | ||
Fiscal 2020 | $ 2,479 | |
Fiscal 2021 | 1,660 | |
Fiscal 2022 | 659 | |
Fiscal 2023 | 682 | |
Fiscal 2024 | 764 | |
Thereafter | 16,459 | |
Total principal payments | 22,703 | |
Less unamortized debt issuance costs | 78 | |
Total debt | 22,625 | |
Capital Lease | ||
Fiscal 2020 | 1,847 | |
Fiscal 2021 | 2,014 | |
Fiscal 2022 | 2,042 | |
Fiscal 2023 | 2,017 | |
Fiscal 2024 | 1,984 | |
Thereafter | 6,798 | |
Capital lease obligations | 16,702 | $ 18,589 |
Fiscal 2020 | 4,326 | |
Fiscal 2021 | 3,674 | |
Fiscal 2022 | 2,701 | |
Fiscal 2023 | 2,699 | |
Fiscal 2024 | 2,748 | |
Thereafter | 23,257 | |
Total principal payments | 39,405 | |
Total debt and capital lease obligations | $ 39,327 | $ 42,041 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Restructuring reserve activity | |||
Charges to operations | $ 0 | $ 0 | $ 6,083,000 |
Europe | |||
Restructuring activity | |||
Estimated exit tax charge | 1,900,000 | ||
Accrued expenses | |||
Restructuring activity | |||
Restructuring reserve included in accrued expenses | 0 | 200,000 | |
Severance | |||
Restructuring reserve activity | |||
Beginning balance | $ 0 | 180,000 | 0 |
Charges to operations | 0 | 6,083,000 | |
Cash payments | (124,000) | (6,003,000) | |
Foreign currency and other adjustments | (56,000) | 100,000 | |
Ending balance | $ 0 | $ 180,000 |
Comprehensive Income (Loss) (De
Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 03, 2018 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Accumulated other comprehensive income (loss), net of tax | ||||
Balance at beginning of period | $ 933,475 | $ 980,994 | $ 1,031,293 | |
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance | 0 | (225) | ||
Balance at end of period | $ 933,475 | 853,645 | 933,475 | 980,994 |
Foreign Currency Translation Adjustment | ||||
Accumulated other comprehensive income (loss), net of tax | ||||
Balance at beginning of period | (67,049) | (158,227) | (157,652) | |
Gains (losses) arising during the period | (52,497) | 91,178 | (575) | |
Reclassification to net earnings (loss) for (gains) losses realized | 0 | 0 | 0 | |
Net other comprehensive income (loss) | (52,497) | 91,178 | (575) | |
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance | 0 | |||
Balance at end of period | (67,049) | (119,546) | (67,049) | (158,227) |
Derivative Financial Instruments Designated as Cash Flow Hedges | ||||
Accumulated other comprehensive income (loss), net of tax | ||||
Balance at beginning of period | (14,369) | 5,400 | 7,252 | |
Gains (losses) arising during the period | 10,962 | (20,408) | 1,059 | |
Reclassification to net earnings (loss) for (gains) losses realized | 6,406 | 414 | (2,911) | |
Net other comprehensive income (loss) | 17,368 | (19,994) | (1,852) | |
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance | 225 | |||
Balance at end of period | (14,369) | 2,999 | (14,369) | 5,400 |
Marketable Securities | ||||
Accumulated other comprehensive income (loss), net of tax | ||||
Balance at beginning of period | 0 | 0 | (15) | |
Gains (losses) arising during the period | 0 | 0 | (1) | |
Reclassification to net earnings (loss) for (gains) losses realized | 0 | 0 | 16 | |
Net other comprehensive income (loss) | 0 | 0 | 15 | |
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance | 0 | |||
Balance at end of period | 0 | 0 | 0 | 0 |
Defined Benefit Plans | ||||
Accumulated other comprehensive income (loss), net of tax | ||||
Balance at beginning of period | (11,644) | (8,562) | (7,639) | |
Gains (losses) arising during the period | 1,516 | (1,999) | (1,162) | |
Reclassification to net earnings (loss) for (gains) losses realized | 496 | 352 | 239 | |
Net other comprehensive income (loss) | 2,012 | (1,647) | (923) | |
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance | (1,435) | |||
Balance at end of period | (11,644) | (9,632) | (11,644) | (8,562) |
AOCI Attributable to Parent | ||||
Accumulated other comprehensive income (loss), net of tax | ||||
Balance at beginning of period | (93,062) | (161,389) | (158,054) | |
Gains (losses) arising during the period | (40,019) | 68,771 | (679) | |
Reclassification to net earnings (loss) for (gains) losses realized | 6,902 | 766 | (2,656) | |
Net other comprehensive income (loss) | (33,117) | 69,537 | (3,335) | |
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance | (1,210) | |||
Balance at end of period | (93,062) | (126,179) | (93,062) | (161,389) |
Retained Earnings | ||||
Accumulated other comprehensive income (loss), net of tax | ||||
Balance at beginning of period | 1,132,173 | 1,215,079 | 1,269,775 | |
Balance at end of period | 1,132,173 | $ 1,077,747 | 1,132,173 | $ 1,215,079 |
Accounting Standards Update 2018-02 | Retained Earnings | ||||
Accumulated other comprehensive income (loss), net of tax | ||||
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance | $ 1,200 | $ 1,200 |
Comprehensive Income (Loss) (_2
Comprehensive Income (Loss) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss) | |||||||||||
Cost of product sales | $ 1,670,090 | $ 1,534,906 | $ 1,445,413 | ||||||||
Other income/expense | 6,591 | (1,241) | (28,854) | ||||||||
Interest expense | 3,407 | 2,431 | 1,897 | ||||||||
Income tax expense | 29,542 | 74,172 | 28,212 | ||||||||
Net earnings (loss) attributable to Guess, Inc. | $ (23,232) | $ 13,442 | $ (25,530) | $ 21,221 | $ (1,040) | $ 2,860 | $ (15,219) | $ 21,293 | (14,099) | 7,894 | (22,761) |
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. | 6,902 | 766 | (2,656) | ||||||||
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 | 7,020 | (14) | (3,518) | ||||||||
Other income/expense | 201 | 583 | (301) | ||||||||
Interest expense | (103) | 87 | 216 | ||||||||
Income tax expense | (712) | (242) | 692 | ||||||||
Net earnings (loss) attributable to Guess, Inc. | 6,406 | 414 | (2,911) | ||||||||
Marketable Securities | Reclassifications out of accumulated other comprehensive income (loss) | |||||||||||
Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss) | |||||||||||
Other income/expense | 0 | 0 | 25 | ||||||||
Income tax expense | 0 | 0 | (9) | ||||||||
Net earnings (loss) attributable to Guess, Inc. | 0 | 0 | 16 | ||||||||
Net actuarial loss amortization | |||||||||||
Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss) | |||||||||||
Reclassifications out of AOCI related to defined benefit plans | 600 | 462 | 341 | ||||||||
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 | (28) | (27) | (28) | ||||||||
Defined Benefit Plans | |||||||||||
Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss) | |||||||||||
Income tax expense | (76) | (83) | (74) | ||||||||
Reclassification to net earnings (loss) for (gains) losses realized | $ 496 | $ 352 | $ 239 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Feb. 02, 2019 | Nov. 03, 2018 | Feb. 03, 2018 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Income Tax Contingency [Line Items] | ||||||
Provisional income tax expense (benefit) | $ 47,900 | |||||
Income tax charge for remeasurement of deferred tax assets | $ 24,900 | |||||
Provisional charge for the estimated effects of the transitional tax on the deemed repatriation of foreign earnings as a result of the enactment of the Tax Reform | 23,000 | |||||
Income tax benefit from reversal of provisional amount | $ 25,800 | $ (6,300) | (19,600) | |||
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance | $ 0 | $ (225) | ||||
Valuation allowance | 32,810 | 32,601 | 32,810 | 32,601 | ||
Increase in valuation allowance | 200 | |||||
Operating loss carryforward | 90,300 | 90,300 | ||||
Operating loss carryforward with unlimited carryforward | 27,500 | 27,500 | ||||
Valuation allowance | 22,900 | 20,400 | 22,900 | 20,400 | ||
Unrecognized tax benefit that may reduce our future annual effective tax rate | 38,300 | 38,300 | ||||
Accruals for uncertain tax positions | 41,400 | 19,000 | 41,400 | 19,000 | ||
Interest and penalties related to uncertain tax positions | 500 | 500 | $ 200 | |||
Penalties related to uncertain tax positions | 2,600 | 2,200 | 2,600 | 2,200 | ||
Foreign Tax Authority | ||||||
Income Tax Contingency [Line Items] | ||||||
Operating loss carryforward | $ 62,800 | $ 62,800 | ||||
Retained Earnings | Accounting Standards Update 2018-02 | ||||||
Income Tax Contingency [Line Items] | ||||||
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance | $ 1,200 | $ 1,200 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Federal: | |||
Current | $ 16,495 | $ 34,181 | $ 8,212 |
Deferred | 4,543 | 21,595 | (636) |
State: | |||
Current | 1,408 | 1,903 | 2,537 |
Deferred | 1,532 | 217 | (1,000) |
Foreign: | |||
Current | 3,385 | 7,333 | 17,055 |
Deferred | 2,179 | 8,943 | 2,044 |
Total | $ 29,542 | $ 74,172 | $ 28,212 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Feb. 02, 2019 | Nov. 03, 2018 | Feb. 03, 2018 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||||
Computed “expected” tax rate | 21.00% | 33.70% | 35.00% | |||
State taxes, net of federal benefit | 1.10% | 2.40% | 1.90% | |||
Non-U.S. tax expense higher (lower) than federal statutory tax rate | 24.20% | (10.50%) | (2.90%) | |||
Tax Reform - repatriation tax adjustment | (41.80%) | 32.80% | 0.00% | |||
Tax Reform - deferred tax adjustment | 0.00% | 35.40% | 0.00% | |||
Cumulative valuation reserve | 0.00% | 0.00% | 12.70% | |||
Valuation reserve | 0.50% | 12.90% | 10.90% | |||
Unrecognized tax benefit | 51.30% | 0.80% | 1.00% | |||
Share-based compensation | 0.20% | 1.50% | 0.00% | |||
Net tax settlements | 0.00% | 0.00% | 3.50% | |||
Sale of minority interest investment | 0.00% | 0.00% | (4.30%) | |||
Estimated exit tax charge | 0.00% | 0.00% | 3.50% | |||
Prior year tax adjustments | 0.30% | 0.70% | (4.40%) | |||
Non-deductible permanent differences | 16.50% | (4.10%) | (4.30%) | |||
Foreign derived intangible income | (10.20%) | 0.00% | 0.00% | |||
Other | 0.10% | 0.00% | 0.00% | |||
Effective tax rate | 63.20% | 105.60% | 52.60% | |||
Income tax benefit from reversal of provisional amount | $ 25.8 | $ (6.3) | $ (19.6) |
Income Taxes - Total Income Tax
Income Taxes - Total Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Operations | $ 29,542 | $ 74,172 | $ 28,212 |
Stockholders' equity | 3,006 | (3,173) | 1,782 |
Total income tax expense | 32,548 | 70,999 | $ 29,994 |
Accounting Standards Update 2016-09 | |||
Operating Loss Carryforwards [Line Items] | |||
Operations | $ 100 | $ 1,300 |
Income Taxes - Tax Effects of C
Income Taxes - Tax Effects of Components of OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 03, 2018 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Operating Loss Carryforwards [Line Items] | ||||
Derivative financial instruments designated as cash flow hedges | $ 2,402 | $ (2,738) | $ (864) | |
Marketable securities | 0 | 0 | 6 | |
Defined benefit plans | 604 | (435) | (21) | |
Total income tax expense (benefit) | 3,006 | (3,173) | (879) | |
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance | $ 0 | $ (225) | ||
Retained Earnings | Accounting Standards Update 2018-02 | ||||
Operating Loss Carryforwards [Line Items] | ||||
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance | $ 1,200 | $ 1,200 |
Income Taxes - Earnings Before
Income Taxes - Earnings Before Income Tax and NCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic operations | $ 97,885 | $ 39,112 | $ 32,944 |
Foreign operations | (51,177) | 31,159 | 20,666 |
Earnings before income tax expense | $ 46,708 | $ 70,271 | $ 53,610 |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) | Feb. 02, 2019 | Feb. 03, 2018 |
Deferred tax assets: | ||
Net operating losses | $ 23,212,000 | $ 19,859,000 |
Defined benefit plans | 12,883,000 | 13,155,000 |
Deferred compensation | 9,823,000 | 10,721,000 |
Rent expense | 7,114,000 | 7,651,000 |
Fixed asset basis | 6,638,000 | 10,704,000 |
Deferred income | 4,373,000 | 7,141,000 |
Accrued bonus | 2,208,000 | 251,000 |
Account receivable/return reserve | 2,009,000 | 1,926,000 |
Bad debt reserve | 1,933,000 | 2,529,000 |
Uniform capitalization | 1,419,000 | 974,000 |
Inventory valuation | 1,339,000 | 3,005,000 |
Lease incentives | 1,337,000 | 1,814,000 |
Other | 18,883,000 | 25,521,000 |
Total deferred tax assets | 93,171,000 | 105,251,000 |
Deferred tax liabilities: | ||
Goodwill amortization | (2,267,000) | (2,303,000) |
Excess of tax over book depreciation/amortization | (101,000) | (135,000) |
Other | (769,000) | (4,517,000) |
Valuation allowance | (32,810,000) | (32,601,000) |
Net deferred tax assets | 57,224,000 | 65,695,000 |
Net deferred tax liabilities | $ 0 | $ 2,700,000 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 16,771 | $ 12,983 | $ 12,585 |
Additions: | |||
Tax positions related to the prior year | 25,822 | 3,129 | 667 |
Tax positions related to the current year | 267 | 222 | 106 |
Reductions: | |||
Tax positions related to the prior year | (2,934) | (355) | (286) |
Tax positions related to the current year | (449) | (303) | 0 |
Settlements | 0 | 0 | 0 |
Expiration of statutes of limitations | 0 | (206) | 0 |
Decrease in foreign currency translation | (726) | (89) | |
Increase in foreign currency translation | 1,301 | ||
Ending balance | $ 38,751 | $ 16,771 | $ 12,983 |
Defined Benefit Plans - Narrati
Defined Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Feb. 02, 2019 | Dec. 31, 2018 | Feb. 03, 2018 | Dec. 31, 2017 | Jan. 28, 2017 | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |||||
Fiscal 2024 | $ 3.9 | ||||
SERP | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate assumed as part of the actuarial valuation performed to calculate the projected benefit obligation and fair value of the plan assets (as a percent) | 3.80% | 3.50% | |||
Amount of actuarial losses, included in comprehensive income (loss), that are expected to be recognized as a component of net periodic defined benefit pension cost in the next fiscal year | $ 0.1 | ||||
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |||||
Fiscal 2020 | 1.7 | ||||
Fiscal 2021 | 2.9 | ||||
Fiscal 2022 | 3.9 | ||||
Fiscal 2023 | 3.9 | ||||
Aggregate benefits projected to be paid in the following five fiscal years | $ 18.3 | ||||
Pension Plan | SWITZERLAND | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate assumed as part of the actuarial valuation performed to calculate the projected benefit obligation and fair value of the plan assets (as a percent) | 0.70% | 0.60% | |||
Amount of actuarial losses, included in comprehensive income (loss), that are expected to be recognized as a component of net periodic defined benefit pension cost in the next fiscal year | $ 0.4 | ||||
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |||||
Minimum investment return (as a percent) | 1.00% | 1.00% | |||
Expected return on plan assets assumed as a part of the actuarial valuation performed to calculate the projected benefit obligation and plan assets (as a percent) | 1.20% | 1.40% | |||
Other assets | SERP | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Cash surrender values of the insurance policies held in a rabbi trust | $ 61.7 | $ 64.5 | |||
Other income/expense | SERP | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Gains (losses) as a result of changes in value of the insurance policy investments, included in other income and expense | $ (1.1) | $ 7.7 | $ 6.9 |
Defined Benefit Plans - Net Per
Defined Benefit Plans - Net Periodic Defined Benefit Cost, Amounts in AOCI and Funded Status (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 03, 2018 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Components of net periodic defined benefit pension cost and other charges to comprehensive income (loss) and accumulated other comprehensive income (loss) | ||||
Service cost | $ 3,039 | $ 2,500 | $ 1,544 | |
Interest cost | 2,112 | 1,991 | 1,926 | |
Expected return on plan assets | (303) | (244) | (185) | |
Net amortization of unrecognized prior service credit | (28) | (27) | (28) | |
Net amortization of actuarial losses | 600 | 462 | 341 | |
Net periodic defined benefit pension cost | 5,420 | 4,682 | 3,598 | |
Unrecognized prior service credit charged to comprehensive income (loss) | (28) | (27) | (28) | |
Unrecognized net actuarial loss charged to comprehensive income (loss) | 600 | 462 | 341 | |
Net actuarial gains (losses) | 1,733 | (2,248) | (1,185) | |
Foreign currency and other adjustments | 311 | (269) | (72) | |
Related tax impact | (604) | 435 | 21 | |
Total periodic defined benefit pension cost and other charges to other comprehensive income (loss) and accumulated other comprehensive income (loss) | 2,012 | (1,647) | (923) | |
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance | 0 | (225) | ||
Total periodic defined benefit pension cost and other charges to accumulated other comprehensive income (loss) | (3,082) | |||
Amounts not yet recognized in net periodic defined benefit pension cost, included in accumulated other comprehensive income (loss), before tax | ||||
Unrecognized prior service credit | $ (113) | (159) | (113) | |
Unrecognized net actuarial loss | 14,343 | 11,773 | 14,343 | |
Total included in accumulated other comprehensive loss | 14,230 | 11,614 | 14,230 | |
Funded status and the amounts recognized in the Company's consolidated balance sheets | ||||
Projected benefit obligation | (81,169) | (83,267) | (81,169) | (73,507) |
Plan assets at fair value | 21,437 | 25,358 | 21,437 | |
Net liability | (59,732) | (57,909) | (59,732) | |
SERP | ||||
Components of net periodic defined benefit pension cost and other charges to comprehensive income (loss) and accumulated other comprehensive income (loss) | ||||
Service cost | 0 | 0 | 0 | |
Interest cost | 1,887 | 1,844 | 1,839 | |
Expected return on plan assets | 0 | 0 | 0 | |
Net amortization of unrecognized prior service credit | 0 | 0 | 0 | |
Net amortization of actuarial losses | 187 | 151 | 155 | |
Net periodic defined benefit pension cost | 2,074 | 1,995 | 1,994 | |
Unrecognized prior service credit charged to comprehensive income (loss) | 0 | 0 | 0 | |
Unrecognized net actuarial loss charged to comprehensive income (loss) | 187 | 151 | 155 | |
Net actuarial gains (losses) | 2,787 | (1,092) | 63 | |
Foreign currency and other adjustments | 0 | 0 | 0 | |
Related tax impact | (686) | 360 | (84) | |
Total periodic defined benefit pension cost and other charges to other comprehensive income (loss) and accumulated other comprehensive income (loss) | 2,288 | (581) | 134 | |
Total periodic defined benefit pension cost and other charges to accumulated other comprehensive income (loss) | (2,016) | |||
Amounts not yet recognized in net periodic defined benefit pension cost, included in accumulated other comprehensive income (loss), before tax | ||||
Unrecognized prior service credit | 0 | 0 | 0 | |
Unrecognized net actuarial loss | 9,454 | 6,480 | 9,454 | |
Total included in accumulated other comprehensive loss | 9,454 | 6,480 | 9,454 | |
Funded status and the amounts recognized in the Company's consolidated balance sheets | ||||
Projected benefit obligation | (54,760) | (52,162) | (54,760) | (53,521) |
Plan assets at fair value | 0 | 0 | 0 | |
Net liability | (54,760) | (52,162) | (54,760) | |
Foreign Plan | Pension | ||||
Components of net periodic defined benefit pension cost and other charges to comprehensive income (loss) and accumulated other comprehensive income (loss) | ||||
Service cost | 3,039 | 2,500 | 1,544 | |
Interest cost | 225 | 147 | 87 | |
Expected return on plan assets | (303) | (244) | (185) | |
Net amortization of unrecognized prior service credit | (28) | (27) | (28) | |
Net amortization of actuarial losses | 413 | 311 | 186 | |
Net periodic defined benefit pension cost | 3,346 | 2,687 | 1,604 | |
Unrecognized prior service credit charged to comprehensive income (loss) | (28) | (27) | (28) | |
Unrecognized net actuarial loss charged to comprehensive income (loss) | 413 | 311 | 186 | |
Net actuarial gains (losses) | (1,054) | (1,156) | (1,248) | |
Foreign currency and other adjustments | 311 | (269) | (72) | |
Related tax impact | 82 | 75 | 105 | |
Total periodic defined benefit pension cost and other charges to other comprehensive income (loss) and accumulated other comprehensive income (loss) | (276) | (1,066) | (1,057) | |
Total periodic defined benefit pension cost and other charges to accumulated other comprehensive income (loss) | (1,066) | |||
Amounts not yet recognized in net periodic defined benefit pension cost, included in accumulated other comprehensive income (loss), before tax | ||||
Unrecognized prior service credit | (113) | (159) | (113) | |
Unrecognized net actuarial loss | 4,889 | 5,293 | 4,889 | |
Total included in accumulated other comprehensive loss | 4,776 | 5,134 | 4,776 | |
Funded status and the amounts recognized in the Company's consolidated balance sheets | ||||
Projected benefit obligation | (26,409) | (31,105) | (26,409) | (19,986) |
Plan assets at fair value | 21,437 | 25,358 | 21,437 | $ 16,305 |
Net liability | (4,972) | (5,747) | (4,972) | |
Defined Benefit Plans | ||||
Components of net periodic defined benefit pension cost and other charges to comprehensive income (loss) and accumulated other comprehensive income (loss) | ||||
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance | (1,435) | |||
Defined Benefit Plans | SERP | ||||
Components of net periodic defined benefit pension cost and other charges to comprehensive income (loss) and accumulated other comprehensive income (loss) | ||||
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance | (1,435) | |||
Defined Benefit Plans | Foreign Plan | Pension | ||||
Components of net periodic defined benefit pension cost and other charges to comprehensive income (loss) and accumulated other comprehensive income (loss) | ||||
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance | 0 | |||
Accounting Standards Update 2018-02 | Retained Earnings | ||||
Components of net periodic defined benefit pension cost and other charges to comprehensive income (loss) and accumulated other comprehensive income (loss) | ||||
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance | 1,200 | 1,200 | ||
Accounting Standards Update 2018-02 | Retained Earnings | SERP | ||||
Components of net periodic defined benefit pension cost and other charges to comprehensive income (loss) and accumulated other comprehensive income (loss) | ||||
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance | (1,400) | |||
Other assets | SERP | ||||
Funded status and the amounts recognized in the Company's consolidated balance sheets | ||||
Cash surrender values of the insurance policies held in a rabbi trust | $ 64,500 | $ 61,700 | $ 64,500 |
Defined Benefit Plans - Changes
Defined Benefit Plans - Changes in Project Benefit Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at the beginning of the period | $ 81,169 | $ 73,507 | |
Service cost | 3,039 | 2,500 | $ 1,544 |
Interest cost | 2,112 | 1,991 | 1,926 |
Actuarial (gains) losses | (1,733) | 2,248 | |
Contributions by plan participants | 2,310 | 2,315 | |
Payments | (3,522) | (3,070) | |
Acquisition | 1,539 | ||
Foreign currency and other adjustments | (1,647) | 1,678 | |
Balance at the end of the period | 83,267 | 81,169 | 73,507 |
SERP | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at the beginning of the period | 54,760 | 53,521 | |
Service cost | 0 | 0 | 0 |
Interest cost | 1,887 | 1,844 | 1,839 |
Actuarial (gains) losses | (2,787) | 1,092 | |
Contributions by plan participants | 0 | 0 | |
Payments | (1,698) | (1,697) | |
Acquisition | 0 | ||
Foreign currency and other adjustments | 0 | 0 | |
Balance at the end of the period | 52,162 | 54,760 | 53,521 |
Pension Plan | Foreign Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at the beginning of the period | 26,409 | 19,986 | |
Service cost | 3,039 | 2,500 | 1,544 |
Interest cost | 225 | 147 | 87 |
Actuarial (gains) losses | 1,054 | 1,156 | |
Contributions by plan participants | 2,310 | 2,315 | |
Payments | (1,824) | (1,373) | |
Acquisition | 1,539 | ||
Foreign currency and other adjustments | (1,647) | 1,678 | |
Balance at the end of the period | $ 31,105 | $ 26,409 | $ 19,986 |
Defined Benefit Plans - Chang_2
Defined Benefit Plans - Changes in Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 02, 2019 | Feb. 03, 2018 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Balance at beginning of period | $ 21,437 | |
Balance at end of period | 25,358 | $ 21,437 |
Pension Plan | Foreign Plan | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Balance at beginning of period | 21,437 | 16,305 |
Actual return on plan assets | 252 | 244 |
Contributions by employer | 3,308 | 2,575 |
Contributions by plan participants | 2,310 | 2,315 |
Payments | (1,824) | (1,373) |
Acquisition | 1,186 | |
Foreign currency and other adjustments | (1,311) | 1,371 |
Balance at end of period | $ 25,358 | $ 21,437 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019USD ($)ft²lease | Feb. 03, 2018USD ($)ft² | Jan. 28, 2017USD ($) | |
Marciano Trusts | |||
Related Party Transactions | |||
Number of leases under lease agreement | lease | 4 | ||
Marciano Trusts | Related party leases | |||
Related Party Transactions | |||
Expenses under related party arrangement | $ | $ 5 | $ 4.9 | $ 5 |
Marciano Trusts | Parking lot adjacent to corporate headquarters | |||
Related Party Transactions | |||
Area of leased property (in square feet) | 140,000 | ||
MPM Financial LLC | Payments for aircraft charter | |||
Related Party Transactions | |||
Payments under related party agreement | $ | $ 1 | $ 1.1 | $ 0.9 |
France | Marciano Trusts | |||
Related Party Transactions | |||
Reduction in square footage | 5,100 | ||
Area of leased property (in square feet) | 16,000 |
Commitments and Contingencies -
Commitments and Contingencies - Other Narrative (Details) $ in Thousands, € in Millions | Nov. 08, 2013USD ($) | Jul. 19, 2012USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Feb. 02, 2019USD ($) | Feb. 02, 2019EUR (€) | Oct. 28, 2017USD ($) | Oct. 28, 2017EUR (€) | Feb. 02, 2019USD ($)subsidiary | Feb. 02, 2019EUR (€)subsidiary | Feb. 03, 2018USD ($) | Jan. 28, 2017USD ($) | Feb. 02, 2019EUR (€) | Nov. 03, 2018USD ($) | Nov. 03, 2018EUR (€) | Jan. 30, 2015trademark | May 02, 2013trademark |
Operating lease expiration | |||||||||||||||||
Rental expense for all property and equipment under operating leases | $ 292,100 | $ 272,300 | $ 263,100 | ||||||||||||||
Rental expense based upon percentage of annual sales volume | 67,200 | 61,200 | 53,000 | ||||||||||||||
Purchase commitments | $ 208,600 | 208,600 | |||||||||||||||
European Commission fine | $ 45,600 | € 39.8 | 3,200 | € 2.8 | $ 42,400 | € 37 | $ 45,637 | € 39.8 | $ 0 | $ 0 | |||||||
Retail store leases | Minimum | |||||||||||||||||
Operating lease expiration | |||||||||||||||||
Percentage of annual sales volume used for incremental rent on certain retail location leases | 4.00% | 4.00% | |||||||||||||||
Retail store leases | Maximum | |||||||||||||||||
Operating lease expiration | |||||||||||||||||
Percentage of annual sales volume used for incremental rent on certain retail location leases | 20.00% | 20.00% | |||||||||||||||
Retail concession leases | Average | |||||||||||||||||
Operating lease expiration | |||||||||||||||||
Percentage of annual sales volume used for incremental rent on certain retail location leases | 35.00% | 35.00% | |||||||||||||||
Private equity fund | |||||||||||||||||
Operating lease expiration | |||||||||||||||||
Unfunded commitment to invest in private equity fund | 4,200 | $ 4,200 | € 3.6 | ||||||||||||||
Gucci America, Inc. | Judicial Ruling | U.S. | |||||||||||||||||
Operating lease expiration | |||||||||||||||||
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 | ||||||||||||||||
Gucci America, Inc. | Pending Litigation | Italy | |||||||||||||||||
Operating lease expiration | |||||||||||||||||
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 | ||||||||||||||||
Gucci America, Inc. | Pending Litigation | CHINA | |||||||||||||||||
Operating lease expiration | |||||||||||||||||
Damages sought in litigation case | $ 80 | ||||||||||||||||
Gucci America, Inc. | Pending Litigation | France | |||||||||||||||||
Operating lease expiration | |||||||||||||||||
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 | ||||||||||||||||
European Commission Fine | Pending Litigation | Minimum | |||||||||||||||||
Operating lease expiration | |||||||||||||||||
Customs tax assessments including potential penalties and interest | $ 42,400 | € 37 | |||||||||||||||
European Commission Fine | Settled litigation | |||||||||||||||||
Operating lease expiration | |||||||||||||||||
Estimated charge accrued | $ 45,600 | € 39.8 | |||||||||||||||
European Commission fine | 3,200 | € 2.8 | |||||||||||||||
Italian customs tax audit and appeals | Europe | Italy | |||||||||||||||||
Operating lease expiration | |||||||||||||||||
Number of subsidiaries under audit by the Italian Customs Agency | subsidiary | 1 | 1 | |||||||||||||||
Customs tax assessments including potential penalties and interest | $ 11,200 | $ 11,200 | € 9.8 | ||||||||||||||
Italian customs tax audit and appeals | Europe | Settled litigation | Italy | |||||||||||||||||
Operating lease expiration | |||||||||||||||||
Monetary damages awarded by court | 1,500 | € 1.3 | |||||||||||||||
Italian customs tax audit and appeals | Europe | First set of appeals | Italy | |||||||||||||||||
Operating lease expiration | |||||||||||||||||
Canceled customs tax assessments | 11,100 | 9.7 | |||||||||||||||
Italian customs tax audit and appeals | Europe | Second through seventh set of appeals | Italy | |||||||||||||||||
Operating lease expiration | |||||||||||||||||
Amount awarded from other party | $ 9,600 | € 8.4 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Capital leases, future minimum lease payments | ||
Fiscal 2020 | $ 2,966 | |
Fiscal 2021 | 2,966 | |
Fiscal 2022 | 2,765 | |
Fiscal 2023 | 2,665 | |
Fiscal 2024 | 2,535 | |
Thereafter | 7,531 | |
Total minimum lease payments | 21,428 | |
Less interest | (4,726) | |
Capital lease obligations | 16,702 | $ 18,589 |
Less current portion | (1,847) | |
Long-term capital lease obligations | 14,855 | |
Capital and operating leases, future minimum lease payments | ||
Fiscal 2020 | 223,900 | |
Fiscal 2021 | 187,035 | |
Fiscal 2022 | 158,725 | |
Fiscal 2023 | 132,399 | |
Fiscal 2024 | 102,662 | |
Thereafter | 225,363 | |
Total minimum lease payments | 1,030,084 | |
Non-Related Parties | ||
Operating leases, future minimum lease payments | ||
Fiscal 2020 | 216,037 | |
Fiscal 2021 | 181,577 | |
Fiscal 2022 | 155,700 | |
Fiscal 2023 | 129,734 | |
Fiscal 2024 | 100,127 | |
Thereafter | 217,832 | |
Total minimum lease payments | 1,001,007 | |
Related Parties | ||
Operating leases, future minimum lease payments | ||
Fiscal 2020 | 4,897 | |
Fiscal 2021 | 2,492 | |
Fiscal 2022 | 260 | |
Fiscal 2023 | 0 | |
Fiscal 2024 | 0 | |
Thereafter | 0 | |
Total minimum lease payments | $ 7,649 |
Commitments and Contingencies_3
Commitments and Contingencies - Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | Feb. 02, 2019 | |
Redeemable noncontrolling interests put arrangements | |||||
Redeemable noncontrolling interests | $ 5,590 | $ 4,452 | $ 4,452 | $ 4,853 | |
Purchase of redeemable noncontrolling interest | 0 | 0 | 4,445 | ||
Redeemable noncontrolling interests reconciliation | |||||
Beginning balance | 5,590 | 4,452 | |||
Foreign currency translation adjustment | (737) | 187 | |||
Noncontrolling interest capital contribution | 0 | 951 | |||
Ending balance | 4,853 | 5,590 | 4,452 | ||
Guess Brazil | |||||
Redeemable noncontrolling interests put arrangements | |||||
Total outstanding equity interest in subsidiary covered by put arrangement (as a percent) | 40.00% | ||||
Total cash contributions in the joint venture made by the Company and the noncontrolling interest holder | 1,700 | ||||
Payments made by the Company related to its controlling interest in joint venture | 1,000 | ||||
Redeemable noncontrolling interests | 1,600 | 1,600 | $ 1,400 | ||
Redeemable noncontrolling interests reconciliation | |||||
Beginning balance | 1,600 | ||||
Ending balance | 1,400 | 1,600 | |||
Guess CIS | |||||
Redeemable noncontrolling interests put arrangements | |||||
Total cash contributions in the joint venture made by the Company and the noncontrolling interest holder | 3,200 | 5,000 | |||
Payments made by the Company related to its controlling interest in joint venture | 2,200 | $ 3,500 | $ 2,000 | ||
Redeemable noncontrolling interests | 4,000 | 4,000 | $ 3,500 | ||
Ownership percentage | 30.00% | ||||
Redeemable noncontrolling interests reconciliation | |||||
Beginning balance | 4,000 | ||||
Ending balance | $ 3,500 | $ 4,000 | |||
Guess Sud | |||||
Redeemable noncontrolling interests put arrangements | |||||
Total outstanding equity interest in subsidiary covered by put arrangement (as a percent) | 40.00% | ||||
Remaining interest acquired by the Company from the noncontrolling interest holder (as a percent) | 40.00% | ||||
Purchase of redeemable noncontrolling interest | $ 4,400 |
Savings Plan (Details)
Savings Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Savings Plan | |||
Deferred compensation liability | $ 14,405 | $ 13,476 | |
Savings Plan | |||
Savings Plan | |||
Employee contribution limit per calendar year (as a percent of compensation) | 100.00% | ||
Employer contribution limit (as a percent of compensation) | 3.00% | ||
Company's contributions to the savings plan | $ 1,200 | 1,100 | $ 1,200 |
Accrued expenses and other long-term liabilities | |||
Savings Plan | |||
Deferred compensation liability | 14,400 | 13,500 | |
Other assets | |||
Savings Plan | |||
Deferred compensation, long-term asset | 14,300 | 13,700 | |
Other income/expense | DCP | |||
Savings Plan | |||
Deferred compensation plan, gains (losses) related to the change in the value of the insurance policy investments | $ (400) | $ 1,700 | $ 1,500 |
Quarterly Information (Unaudi_3
Quarterly Information (Unaudited) (Details) $ / shares in Units, € in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Feb. 02, 2019USD ($)$ / shares | Feb. 02, 2019EUR (€) | Nov. 03, 2018USD ($)$ / shares | Aug. 04, 2018USD ($)$ / shares | May 05, 2018USD ($)$ / shares | Feb. 03, 2018USD ($)$ / shares | Oct. 28, 2017USD ($)$ / shares | Oct. 28, 2017EUR (€) | Jul. 29, 2017USD ($)$ / shares | Apr. 29, 2017USD ($)$ / shares | Feb. 02, 2019USD ($)$ / shares | Feb. 02, 2019EUR (€) | Feb. 03, 2018USD ($)$ / shares | Jan. 28, 2017USD ($)$ / shares | |
Summary of the unaudited quarterly financial information | ||||||||||||||||
Net revenue | $ 837,127,000 | $ 605,407,000 | $ 645,871,000 | $ 521,289,000 | $ 792,164,000 | $ 548,953,000 | $ 568,292,000 | $ 454,345,000 | ||||||||
Gross profit | 306,092,000 | 220,143,000 | 239,431,000 | 173,938,000 | 295,070,000 | 191,109,000 | 198,027,000 | 144,642,000 | $ 939,604,000 | $ 828,848,000 | $ 745,040,000 | |||||
Net earnings (loss) | 25,235,000 | (12,816,000) | 25,734,000 | (20,987,000) | 3,107,000 | (1,662,000) | 15,881,000 | (21,227,000) | 17,166,000 | (3,901,000) | 25,398,000 | |||||
Net earnings (loss) attributable to Guess, Inc. | $ 23,232,000 | $ (13,442,000) | $ 25,530,000 | $ (21,221,000) | $ 1,040,000 | $ (2,860,000) | $ 15,219,000 | $ (21,293,000) | $ 14,099,000 | $ (7,894,000) | $ 22,761,000 | |||||
Net earnings (loss) per common share attributable to common stockholders: | ||||||||||||||||
Basic (in dollars per share) | $ / shares | $ 0.29 | $ (0.17) | $ 0.32 | $ (0.27) | $ (0.01) | $ (0.04) | $ 0.18 | $ (0.26) | $ 0.17 | $ (0.11) | $ 0.27 | |||||
Diluted (in dollars per share) | $ / shares | $ 0.28 | $ (0.17) | $ 0.31 | $ (0.27) | $ (0.01) | $ (0.04) | $ 0.18 | $ (0.26) | $ 0.16 | $ (0.11) | $ 0.27 | |||||
Selected quarterly financial information | ||||||||||||||||
Professional service and legal costs and related costs | $ 200,000 | $ 100,000 | $ 2,000,000 | $ 3,800,000 | $ 500,000 | $ 0 | $ 0 | $ 0 | ||||||||
Net gains (losses) on lease terminations | (300,000) | 0 | 0 | (200,000) | (100,000) | 11,500,000 | 0 | 0 | $ (477,000) | $ 11,373,000 | $ (695,000) | |||||
Asset impairment charges | 1,900,000 | 1,300,000 | $ 3,000,000 | $ 700,000 | 2,500,000 | 2,000,000 | $ 1,200,000 | $ 2,800,000 | 6,939,000 | 8,479,000 | ||||||
European Commission fine | $ 45,600,000 | € 39.8 | 3,200,000 | € 2.8 | $ 42,400,000 | € 37 | $ 45,637,000 | € 39.8 | $ 0 | $ 0 | ||||||
Provisional income tax expense (benefit) | 47,900,000 | |||||||||||||||
Income tax benefit from reversal of provisional amount | 25,800,000 | $ (6,300,000) | (19,600,000) | |||||||||||||
Provisional charge for remeasurement of U.S. deferred tax assets as a result of the enactment of the Tax Reform | 24,900,000 | |||||||||||||||
Provisional charge for the estimated effects of the transitional tax on the deemed repatriation of foreign earnings as a result of the enactment of the Tax Reform | $ 23,000,000 | |||||||||||||||
CEO | ||||||||||||||||
Selected quarterly financial information | ||||||||||||||||
Prior period reclassification adjustment | 5,200,000 | |||||||||||||||
Cash related severance payments | 2,400,000 | |||||||||||||||
Non-cash stock-based compensation expenses | $ 2,800,000 |
Segment Information (Details)
Segment Information (Details) € in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Feb. 02, 2019USD ($) | Feb. 02, 2019EUR (€) | Nov. 03, 2018USD ($) | Aug. 04, 2018USD ($) | May 05, 2018USD ($) | Feb. 03, 2018USD ($) | Oct. 28, 2017USD ($) | Oct. 28, 2017EUR (€) | Jul. 29, 2017USD ($) | Apr. 29, 2017USD ($) | Feb. 02, 2019USD ($) | Feb. 02, 2019EUR (€) | Feb. 03, 2018USD ($) | Jan. 28, 2017USD ($) | |
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | ||||||||||||||||
Net revenue | $ 2,609,694,000 | $ 2,363,754,000 | $ 2,190,453,000 | |||||||||||||
European Commission fine | $ (45,600,000) | € (39.8) | $ (3,200,000) | € (2.8) | $ (42,400,000) | € (37) | (45,637,000) | € (39.8) | 0 | 0 | ||||||
Asset impairment charges | (6,939,000) | (8,479,000) | (34,385,000) | |||||||||||||
Net gains (losses) on lease terminations | $ 300,000 | $ 0 | $ 0 | $ 200,000 | $ 100,000 | $ (11,500,000) | $ 0 | $ 0 | 477,000 | (11,373,000) | 695,000 | |||||
Restructuring charges | 0 | 0 | (6,083,000) | |||||||||||||
Earnings (loss) from operations | 52,212,000 | 67,355,000 | 24,763,000 | |||||||||||||
Capital expenditures | 108,117,000 | 84,655,000 | 90,581,000 | |||||||||||||
Selling, general and administrative expenses | (835,293,000) | (741,641,000) | (680,504,000) | |||||||||||||
Operating segments | ||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | ||||||||||||||||
Earnings (loss) from operations | 201,116,000 | 187,641,000 | 136,403,000 | |||||||||||||
Corporate overhead | ||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | ||||||||||||||||
Earnings (loss) from operations | (96,805,000) | (100,434,000) | (71,867,000) | |||||||||||||
Capital expenditures | 7,877,000 | 7,923,000 | 5,411,000 | |||||||||||||
Reconciling items | ||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | ||||||||||||||||
European Commission fine | (45,637,000) | 0 | 0 | |||||||||||||
Asset impairment charges | (6,939,000) | (8,479,000) | (34,385,000) | |||||||||||||
Net gains (losses) on lease terminations | 477,000 | (11,373,000) | 695,000 | |||||||||||||
Restructuring charges | 0 | 0 | (6,083,000) | |||||||||||||
Americas Retail | Operating segments | ||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | ||||||||||||||||
Net revenue | 824,674,000 | 833,077,000 | 935,479,000 | |||||||||||||
Earnings (loss) from operations | 27,532,000 | (11,096,000) | (13,752,000) | |||||||||||||
Capital expenditures | 19,614,000 | 16,899,000 | 25,881,000 | |||||||||||||
Americas Wholesale | Operating segments | ||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | ||||||||||||||||
Net revenue | 170,812,000 | 150,366,000 | 146,260,000 | |||||||||||||
Earnings (loss) from operations | 29,935,000 | 25,845,000 | 25,007,000 | |||||||||||||
Capital expenditures | 376,000 | 1,303,000 | 3,320,000 | |||||||||||||
Europe | Operating segments | ||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | ||||||||||||||||
Net revenue | 1,142,768,000 | 998,657,000 | 788,194,000 | |||||||||||||
Earnings (loss) from operations | 58,298,000 | 94,545,000 | 65,068,000 | |||||||||||||
Capital expenditures | 56,792,000 | 46,419,000 | 42,080,000 | |||||||||||||
Asia | Operating segments | ||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | ||||||||||||||||
Net revenue | 388,246,000 | 308,899,000 | 248,601,000 | |||||||||||||
Earnings (loss) from operations | 12,365,000 | 14,809,000 | (1,392,000) | |||||||||||||
Capital expenditures | 23,458,000 | 12,111,000 | 13,869,000 | |||||||||||||
Licensing | Operating segments | ||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | ||||||||||||||||
Net revenue | 83,194,000 | 72,755,000 | 71,919,000 | |||||||||||||
Earnings (loss) from operations | 72,986,000 | 63,538,000 | 61,472,000 | |||||||||||||
Capital expenditures | 0 | 0 | 20,000 | |||||||||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | ||||||||||||||||
Net revenue | 10,700,000 | |||||||||||||||
Earnings (loss) from operations | 1,000,000 | |||||||||||||||
Selling, general and administrative expenses | 9,600,000 | |||||||||||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Corporate overhead | ||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | ||||||||||||||||
Selling, general and administrative expenses | (3,000,000) | |||||||||||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Americas Retail | ||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | ||||||||||||||||
Selling, general and administrative expenses | (3,900,000) | |||||||||||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Americas Wholesale | ||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | ||||||||||||||||
Selling, general and administrative expenses | (1,700,000) | |||||||||||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Licensing | ||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | ||||||||||||||||
Selling, general and administrative expenses | (1,100,000) | |||||||||||||||
Net royalties | ||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | ||||||||||||||||
Net revenue | 83,194,000 | $ 72,755,000 | $ 71,919,000 | |||||||||||||
Net royalties | Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Licensing | ||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | ||||||||||||||||
Net revenue | $ 10,700,000 |
Segment Information (Details 2)
Segment Information (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Information related to geographic areas in which the Company operated | |||
Net revenue | $ 2,609,694 | $ 2,363,754 | $ 2,190,453 |
Long-lived assets | 386,449 | 360,470 | |
U.S. | |||
Information related to geographic areas in which the Company operated | |||
Long-lived assets | 111,022 | 109,943 | |
Italy | |||
Information related to geographic areas in which the Company operated | |||
Long-lived assets | 30,038 | 34,884 | |
Canada | |||
Information related to geographic areas in which the Company operated | |||
Long-lived assets | 13,225 | 18,845 | |
South Korea | |||
Information related to geographic areas in which the Company operated | |||
Long-lived assets | 9,437 | 9,584 | |
Other foreign countries | |||
Information related to geographic areas in which the Company operated | |||
Long-lived assets | 222,727 | 187,214 | |
Product sales | |||
Information related to geographic areas in which the Company operated | |||
Net revenue | 2,526,500 | 2,290,999 | 2,118,534 |
Product sales | U.S. | |||
Information related to geographic areas in which the Company operated | |||
Net revenue | 722,794 | 709,155 | 801,623 |
Product sales | Italy | |||
Information related to geographic areas in which the Company operated | |||
Net revenue | 304,435 | 289,981 | 251,709 |
Product sales | Canada | |||
Information related to geographic areas in which the Company operated | |||
Net revenue | 187,367 | 200,364 | 217,029 |
Product sales | South Korea | |||
Information related to geographic areas in which the Company operated | |||
Net revenue | 162,943 | 163,382 | 156,094 |
Product sales | Other foreign countries | |||
Information related to geographic areas in which the Company operated | |||
Net revenue | 1,148,961 | 928,117 | 692,079 |
Net royalties | |||
Information related to geographic areas in which the Company operated | |||
Net revenue | $ 83,194 | $ 72,755 | $ 71,919 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net earnings (loss) attributable to Guess, Inc. | $ 23,232 | $ (13,442) | $ 25,530 | $ (21,221) | $ 1,040 | $ (2,860) | $ 15,219 | $ (21,293) | $ 14,099 | $ (7,894) | $ 22,761 |
Less net earnings attributable to nonvested restricted stockholders | 756 | 764 | 527 | ||||||||
Net earnings (loss) attributable to common stockholders | $ 13,343 | $ (8,658) | $ 22,234 | ||||||||
Weighted average common shares used in basic computations | 80,146,000 | 82,189,000 | 83,666,000 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock options and restricted stock units (in shares) | 1,443,000 | 0 | 163,000 | ||||||||
Weighted average common shares used in diluted computations | 81,589,000 | 82,189,000 | 83,829,000 | ||||||||
Net earnings (loss) per common share attributable to common stockholders: | |||||||||||
Basic (in dollars per share) | $ 0.29 | $ (0.17) | $ 0.32 | $ (0.27) | $ (0.01) | $ (0.04) | $ 0.18 | $ (0.26) | $ 0.17 | $ (0.11) | $ 0.27 |
Diluted (in dollars per share) | $ 0.28 | $ (0.17) | $ 0.31 | $ (0.27) | $ (0.01) | $ (0.04) | $ 0.18 | $ (0.26) | 0.16 | (0.11) | 0.27 |
Dividends declared per common share (in dollars per share) | $ 0.9 | $ 0.9 | $ 0.90 | ||||||||
Antidilutive securities excluded from computation of earnings per share | |||||||||||
Antidilutive equity awards excluded from computation of diluted weighted average common shares (in shares) | 1,526,717 | 2,925,549 | 3,254,259 | ||||||||
Potentially dilutive shares | |||||||||||
Antidilutive securities excluded from computation of earnings per share | |||||||||||
Antidilutive equity awards excluded from computation of diluted weighted average common shares (in shares) | 652,494 | ||||||||||
Performance-based units | |||||||||||
Antidilutive securities excluded from computation of earnings per share | |||||||||||
Awards subject to performance or market conditions that were excluded from the computation of diluted weighted average common shares (in shares) | 928,026 | ||||||||||
Performance-based or market-based units | |||||||||||
Antidilutive securities excluded from computation of earnings per share | |||||||||||
Awards subject to performance or market conditions that were excluded from the computation of diluted weighted average common shares (in shares) | 899,345 | 473,878 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | Jul. 07, 2015shares | Feb. 02, 2019USD ($)planvesting_period$ / sharesshares | Feb. 03, 2018USD ($)$ / sharesshares | Jan. 28, 2017USD ($)$ / sharesshares | May 18, 2017shares | May 19, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of share-based compensation plans | plan | 4 | |||||
Weighted average fair values of stock options granted during the period (in dollars per share) | $ / shares | $ 5.89 | $ 1.57 | $ 3.53 | |||
Total intrinsic value of options exercised (in dollars) | $ 3,400 | $ 700 | ||||
Cash received from option exercises | 8,900 | 1,400 | $ 200 | |||
Share-based compensation expense | 19,973 | 18,852 | 16,908 | |||
Unrecognized compensation cost related to nonvested stock options | 3,200 | |||||
Excess tax windfall | 300 | |||||
Stock option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | 2,563 | 2,345 | 2,219 | |||
Income tax benefit on recognized compensation cost | $ 600 | |||||
Weighted average period for recognition of unrecognized compensation cost (in years/months/days) | 1 year 219 days | |||||
Stock option | Selling, general and administrative expenses | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 2,600 | |||||
Stock awards or units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock awards or units granted (in shares) | shares | 1,203,501 | |||||
Share-based compensation expense | $ 17,187 | $ 16,347 | $ 14,544 | |||
Weighted average period for recognition of unrecognized compensation cost (in years/months/days) | 1 year 256 days | |||||
Excess tax windfall | $ 900 | |||||
Granted (in dollars per share) | $ / shares | $ 20.81 | $ 11.41 | $ 18.01 | |||
Total fair value at grant date of previously nonvested stock awards/units that were vested during the period | $ 10,900 | $ 18,400 | $ 14,700 | |||
Total intrinsic value of nonvested stock awards/units that vested during the period | 14,600 | $ 12,600 | $ 9,400 | |||
Total intrinsic value of nonvested stock awards/units outstanding | 50,100 | |||||
Total unrecognized compensation cost | 14,500 | |||||
Stock awards or units | Selling, general and administrative expenses | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | 17,200 | |||||
Income tax benefit on recognized compensation cost | $ 3,000 | |||||
Performance-based awards/units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock awards or units granted (in shares) | shares | 496,500 | |||||
Granted (in dollars per share) | $ / shares | $ 21.84 | |||||
Performance units | Vesting, Tranche one | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
Performance units | Minimum | Vesting, annual vesting periods after initial vesting period | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 2 years | |||||
Performance units | Maximum | Vesting, annual vesting periods after initial vesting period | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Target performance units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Target performance units | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
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 Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rights based on the satisfaction of certain performance or market-based criteria (as a percentage) | 200.00% | |||||
Market-based awards/units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Stock awards or units granted (in shares) | shares | 129,932 | |||||
Period which award is subject to a market condition (in years) | 3 years | |||||
Granted (in dollars per share) | $ / shares | $ 20.28 | |||||
Market-based awards/units | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rights based on the satisfaction of certain performance or market-based criteria (as a percentage) | 0.00% | |||||
Market-based awards/units | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rights based on the satisfaction of certain performance or market-based criteria (as a percentage) | 150.00% | |||||
Contingently returnable restricted stock units | CEO | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock awards or units granted (in shares) | shares | 150,000 | |||||
Implied service period | 1 year | |||||
2004 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Authorized number of shares (in shares) | shares | 29,100,000 | 15,000,000 | ||||
Shares available for grant under the plan (in shares) | shares | 12,075,403 | 15,350,428 | ||||
2004 Equity Incentive Plan | Stock option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Term of award | 10 years | |||||
Vesting rights (as a percentage) | 25.00% | |||||
Number of annual vesting periods | vesting_period | 3 | |||||
2004 Equity Incentive Plan | Stock option | Vesting, Tranche one | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 9 months | |||||
2004 Equity Incentive Plan | Stock option | Vesting, Tranche two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
2004 Equity Incentive Plan | Stock option | Vesting, Tranche three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
2004 Equity Incentive Plan | Stock option | Vesting, Tranche four | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
2004 Equity Incentive Plan | Stock awards or units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number that new grants on or after May 1, 2017 are counted against shares authorized (excluding stock options or stock appreciation rights) (in shares) | shares | 3.54 | |||||
Vesting rights (as a percentage) | 25.00% | |||||
Number of annual vesting periods | vesting_period | 3 | |||||
2004 Equity Incentive Plan | Stock awards or units | Vesting, Tranche one | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 7 months | |||||
2004 Equity Incentive Plan | Stock awards or units | Vesting, Tranche two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
2004 Equity Incentive Plan | Stock awards or units | Vesting, Tranche three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
2004 Equity Incentive Plan | Stock awards or units | Vesting, Tranche four | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Authorized number of shares (in shares) | shares | 4,000,000 | |||||
Purchase price of the Company's common stock determined as the lower of the closing price at the beginning or end of the quarterly stock purchase period (expressed as a percentage) | 85.00% | |||||
Minimum holding period for shares purchased under the ESPP (in months) | 6 months | |||||
Period after public announcement of earnings prohibited for trading, as per Company's securities trading policy (in days) | 2 days | |||||
Weighted average fair values of stock options granted during the period (in dollars per share) | $ / shares | $ 5.17 | $ 2.85 | $ 3.32 | |||
Share-based compensation expense | $ 223 | $ 160 | $ 145 | |||
Issuance of stock under Employee Stock Purchase Plan (in shares) | shares | 43,737 | 54,300 | 44,486 | |||
Issuance of stock pursuant to ESPP (in dollars per share) | $ / shares | $ 16.88 | $ 10.45 | $ 12.56 | |||
2006 Non-Employee Directors Stock Grant and Stock Option Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Authorized number of shares (in shares) | shares | 1,850,000 | 2,000,000 | ||||
Shares available for grant under the plan (in shares) | shares | 423,873 | 495,489 | ||||
Retained Earnings | Accounting Standards Update 2016-09 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance | $ 300 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 19,973 | $ 18,852 | $ 16,908 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 2,563 | 2,345 | 2,219 |
Stock awards or units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 17,187 | 16,347 | 14,544 |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 223 | $ 160 | $ 145 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Feb. 02, 2019USD ($)$ / sharesshares | |
Number of Shares | |
Options outstanding at the beginning of the period (in shares) | shares | 3,912,412 |
Granted (in shares) | shares | 431,371 |
Exercised (in shares) | shares | (553,700) |
Forfeited (in shares) | shares | (143,899) |
Expired (in shares) | shares | (65,275) |
Options outstanding at the end of the period (in shares) | shares | 3,580,909 |
Exercisable at the end of the period (in shares) | shares | 2,499,944 |
Weighted Average Exercise Price | |
Options outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 20.33 |
Granted (in dollars per share) | $ / shares | 20.74 |
Exercised (in dollars per share) | $ / shares | 16.16 |
Forfeited (in dollars per share) | $ / shares | 18.44 |
Expired (in dollars per share) | $ / shares | 41.71 |
Options outstanding at the end of the period (in dollars per share) | $ / shares | 20.71 |
Exercisable at the end of the period (in dollars per share) | $ / shares | $ 23.18 |
Weighted Average Remaining Contractual Term (Years) | |
Options outstanding at the end of the period (in years/months/days) | 6 years 40 days |
Exercisable at the end of the period (in years/months/days) | 5 years 58 days |
Aggregate Intrinsic Value | |
Options outstanding at the end of the period (in dollars) | $ | $ 7,698 |
Exercisable at the end of the period (in dollars) | $ | $ 2,771 |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions (Details) | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.00% | 1.00% | 0.30% |
Expected stock price volatility | 59.10% | 45.80% | 41.10% |
Expected dividend yield | 4.60% | 7.60% | 6.20% |
Expected life of ESPP options | 3 months | 3 months | 3 months |
Market-based awards/units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.60% | 1.40% | 0.90% |
Expected stock price volatility | 42.10% | 39.70% | 36.20% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected life of ESPP options | 2 years 219 days | 2 years 9 months 4 days | 2 years 9 months 4 days |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.30% | 1.50% | 1.00% |
Expected stock price volatility | 46.10% | 37.10% | 35.40% |
Expected dividend yield | 4.30% | 8.00% | 4.80% |
Expected life of ESPP options | 4 years 146 days | 4 years 4 months 24 days | 4 years 2 months |
Share-Based Compensation - St_2
Share-Based Compensation - Stock Awards/Units Activity (Details) - $ / shares | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Stock awards or units | |||
Number of Shares/Units | |||
Nonvested at the beginning of the period (in shares) | 2,464,566 | ||
Granted (in shares) | 1,203,501 | ||
Vested (in shares) | (695,024) | ||
Forfeited (in shares) | (340,874) | ||
Nonvested at the end of the period (in shares) | 2,632,169 | 2,464,566 | |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 13.66 | ||
Granted (in dollars per share) | 20.81 | $ 11.41 | $ 18.01 |
Vested (in dollars per share) | 15.65 | ||
Forfeited (in dollars per share) | 16.45 | ||
Nonvested at the end of the period (in dollars per share) | $ 16.04 | $ 13.66 | |
Performance-based units | |||
Number of Shares/Units | |||
Nonvested at the beginning of the period (in shares) | 1,300,921 | ||
Granted (in shares) | 496,500 | ||
Vested (in shares) | (259,112) | ||
Forfeited (in shares) | (167,079) | ||
Nonvested at the end of the period (in shares) | 1,371,230 | 1,300,921 | |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 14.01 | ||
Granted (in dollars per share) | 21.84 | ||
Vested (in dollars per share) | 14.38 | ||
Forfeited (in dollars per share) | 16.78 | ||
Nonvested at the end of the period (in dollars per share) | $ 16.44 | $ 14.01 | |
Market-based awards/units | |||
Number of Shares/Units | |||
Nonvested at the beginning of the period (in shares) | 388,477 | ||
Granted (in shares) | 129,932 | ||
Vested (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Nonvested at the end of the period (in shares) | 518,409 | 388,477 | |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 12.28 | ||
Granted (in dollars per share) | 20.28 | ||
Vested (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 0 | ||
Nonvested at the end of the period (in dollars per share) | $ 14.28 | $ 12.28 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands, € in Millions | 12 Months Ended | ||||
Feb. 02, 2019USD ($) | Feb. 02, 2019EUR (€) | Feb. 02, 2019EUR (€) | Feb. 03, 2018USD ($) | Feb. 03, 2018EUR (€) | |
Assets: | |||||
Total Assets | $ 5,723 | $ 1,511 | |||
Liabilities: | |||||
Foreign exchange currency contracts, Liabilities | 77 | 18,089 | |||
Deferred compensation obligations | 14,405 | 13,476 | |||
Total Liabilities | 14,482 | 31,565 | |||
Private equity fund | |||||
Investment in private equity fund | |||||
Unfunded commitment to invest in private equity fund | 4,200 | € 3.6 | |||
Level 1 | |||||
Assets: | |||||
Total Assets | 0 | 0 | |||
Liabilities: | |||||
Foreign exchange currency contracts, Liabilities | 0 | 0 | |||
Deferred compensation obligations | 0 | 0 | |||
Total Liabilities | 0 | 0 | |||
Level 2 | |||||
Assets: | |||||
Total Assets | 5,723 | 1,511 | |||
Liabilities: | |||||
Foreign exchange currency contracts, Liabilities | 77 | 18,089 | |||
Deferred compensation obligations | 14,405 | 13,476 | |||
Total Liabilities | 14,482 | 31,565 | |||
Level 3 | |||||
Assets: | |||||
Total Assets | 0 | 0 | |||
Liabilities: | |||||
Foreign exchange currency contracts, Liabilities | 0 | 0 | |||
Deferred compensation obligations | 0 | 0 | |||
Total Liabilities | 0 | 0 | |||
Fair Value Measured at Net Asset Value Per Share | Private equity fund | |||||
Investment in private equity fund | |||||
Investment | 1,100 | 0.9 | 500 | € 0.5 | |
Other income/expense | |||||
Investment in private equity fund | |||||
Unrealized loss on investments | 200 | € 0.1 | |||
Other assets | |||||
Investment in private equity fund | |||||
Investment | 1,400 | € 1.2 | 600 | € 0.5 | |
Foreign exchange currency contracts | |||||
Assets: | |||||
Derivative assets | 4,690 | 51 | |||
Foreign exchange currency contracts | Level 1 | |||||
Assets: | |||||
Derivative assets | 0 | 0 | |||
Foreign exchange currency contracts | Level 2 | |||||
Assets: | |||||
Derivative assets | 4,690 | 51 | |||
Foreign exchange currency contracts | Level 3 | |||||
Assets: | |||||
Derivative assets | 0 | 0 | |||
Interest rate swap | |||||
Assets: | |||||
Derivative assets | 1,033 | 1,460 | |||
Interest rate swap | Level 1 | |||||
Assets: | |||||
Derivative assets | 0 | 0 | |||
Interest rate swap | Level 2 | |||||
Assets: | |||||
Derivative assets | 1,033 | 1,460 | |||
Interest rate swap | Level 3 | |||||
Assets: | |||||
Derivative assets | $ 0 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Derivative Insruments (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
ASSETS: | ||
Derivatives, assets | $ 5,723 | $ 1,511 |
LIABILITIES: | ||
Derivatives, liabilities | 77 | 18,089 |
Derivatives designated as hedging instruments | Cash flow hedges | ||
ASSETS: | ||
Derivatives, assets | 5,091 | 1,501 |
Derivatives designated as hedging instruments | Foreign exchange currency contracts | Other current assets/Other assets | Cash flow hedges | ||
ASSETS: | ||
Derivatives, assets | 4,058 | 41 |
Derivatives designated as hedging instruments | Foreign exchange currency contracts | Accrued expenses/Other long-term liabilities | Cash flow hedges | ||
LIABILITIES: | ||
Derivatives, liabilities | 77 | 13,789 |
Derivatives designated as hedging instruments | Interest rate swap | Other assets | Cash flow hedges | ||
ASSETS: | ||
Derivatives, assets | 1,033 | 1,460 |
Derivatives not designated as hedging instruments | Foreign exchange currency contracts | Other current assets/Other assets | ||
ASSETS: | ||
Derivatives, assets | 632 | 10 |
Derivatives not designated as hedging instruments | Foreign exchange currency contracts | Accrued expenses | ||
LIABILITIES: | ||
Derivatives, liabilities | $ 0 | $ 4,300 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Derivative [Line Items] | |||
Net unrealized gain (loss) in accumulated other comprehensive income (loss) related to cash flow hedges | $ (2,999) | $ 14,369 | $ (5,400) |
Foreign exchange currency cash flow hedge unrealized loss to be recognized in cost of product sales or other income over the following 12 months | (2,100) | ||
Foreign exchange currency contracts | |||
Derivative [Line Items] | |||
Net unrealized gain (loss) in accumulated other comprehensive income (loss) related to cash flow hedges | (2,200) | ||
Interest rate swap | |||
Derivative [Line Items] | |||
Net unrealized gain (loss) in accumulated other comprehensive income (loss) related to cash flow hedges | $ (800) | ||
Derivatives designated as hedging instruments | Europe | Cash flow hedges | |||
Derivative [Line Items] | |||
U.S. dollar forward contracts outstanding, maximum remaining maturity period (in months) | 17 months | ||
Derivatives designated as hedging instruments | Canada | Cash flow hedges | |||
Derivative [Line Items] | |||
U.S. dollar forward contracts outstanding, maximum remaining maturity period (in months) | 17 months | ||
Derivatives designated as hedging instruments | Foreign exchange currency contracts | Europe | Cash flow hedges | |||
Derivative [Line Items] | |||
U.S. dollar forward contracts purchased, total notional amount | $ 152,400 | ||
Notional amount of derivative outstanding | 175,200 | 145,800 | |
Derivatives designated as hedging instruments | Foreign exchange currency contracts | Canada | Cash flow hedges | |||
Derivative [Line Items] | |||
Notional amount of derivative outstanding | $ 3,900 | 38,700 | |
Derivatives designated as hedging instruments | Interest rate swap | Cash flow hedges | |||
Derivative [Line Items] | |||
Notional amount of derivative outstanding | $ 21,500 | ||
Fixed rate of interest rate swap designated as a cash flow hedge (as a percent) | 3.06% | ||
Euro Member Countries, Euro | Derivatives not designated as hedging instruments | |||
Derivative [Line Items] | |||
U.S. dollar forward contracts outstanding, maximum remaining maturity period (in months) | 3 months | ||
Euro Member Countries, Euro | Derivatives not designated as hedging instruments | Foreign exchange currency contracts | |||
Derivative [Line Items] | |||
Notional amount of derivative outstanding | $ 8,200 | 68,200 | |
Canada, Dollars | Derivatives not designated as hedging instruments | Foreign exchange currency contracts | |||
Derivative [Line Items] | |||
Notional amount of derivative outstanding | $ 17,600 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Gain (Losses) on Derivative Instruments Designated As Cash Flow Hedges (Details) - USD ($) | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings | |||
Loss reclassified from accumulated OCI to retained earnings | $ 0 | $ (225,000) | |
Amount of ineffectiveness recognized in net earnings (loss) on interest rate swap | 0 | $ 0 | 0 |
Cost of product sales | |||
Gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings | |||
Foreign exchange currency contracts, gain (loss) recognized in OCI | 12,973,000 | (22,497,000) | 0 |
Foreign exchange currency contracts, gain (loss) reclassified from accumulated OCI into earnings | (7,020,000) | 14,000 | 3,518,000 |
Loss reclassified from accumulated OCI to retained earnings | 0 | ||
Other income/expense | |||
Gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings | |||
Foreign exchange currency contracts, gain (loss) recognized in OCI | 2,000 | (1,163,000) | 227,000 |
Foreign exchange currency contracts, gain (loss) reclassified from accumulated OCI into earnings | (201,000) | (583,000) | 301,000 |
Loss reclassified from accumulated OCI to retained earnings | 0 | ||
Interest expense | |||
Gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings | |||
Interest rate swap, gain (loss) recognized in OCI | (324,000) | 272,000 | 660,000 |
Loss reclassified from accumulated OCI to retained earnings | (225,000) | ||
Gain (loss) reclassified from accumulated OCI into earnings (loss) | 103,000 | (87,000) | (216,000) |
Interest income/expense | |||
Gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings | |||
Amount of ineffectiveness recognized in net earnings on foreign exchange currency contracts | $ 3,500,000 | $ 2,700,000 | $ 900,000 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Net After Tax Derivative Acivity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Net after-tax derivative activity recorded in accumulated other comprehensive income (loss) | |||
Beginning balance gain (loss) | $ (14,369) | $ 5,400 | |
Net gains (losses) from changes in cash flow hedges | 10,962 | (20,408) | |
Net losses reclassified to earnings (loss) | 6,406 | 414 | |
Net losses reclassified to retained earnings | 0 | $ 225 | |
Ending balance gain (loss) | 2,999 | $ (14,369) | 5,400 |
Interest rate swap | |||
Net after-tax derivative activity recorded in accumulated other comprehensive income (loss) | |||
Ending balance gain (loss) | $ 800 | ||
Accounting Standards Update 2018-02 | Derivatives designated as hedging instruments | Cash flow hedges | Interest rate swap | |||
Net after-tax derivative activity recorded in accumulated other comprehensive income (loss) | |||
Net losses reclassified to retained earnings | $ 200 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Gain (Loss) on Derivatives Not Designated As Hedging Instruments (Details) - Other income/expense - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Foreign exchange currency contracts | |||
Derivative [Line Items] | |||
Gain (loss) on derivatives not designated as hedging instruments recognized in earnings (loss) before taxes | $ 6,785 | $ (10,511) | $ 2,427 |
Interest rate swap | |||
Derivative [Line Items] | |||
Gain (loss) on derivatives not designated as hedging instruments recognized in earnings (loss) before taxes | $ 0 | $ 0 | $ 38 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) | 12 Months Ended | |||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Jun. 26, 2012 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased, aggregate cost | $ 17,587,000 | $ 56,159,000 | $ 3,532,000 | |
Share repurchases settled after year end | $ 0 | $ 6,033,000 | ||
Share Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Value of common stock authorized to be repurchased | $ 500,000,000 | |||
Number of common stock repurchased (in shares) | 1,118,808 | 3,866,387 | 289,968 | |
Shares repurchased, aggregate cost | $ 17,600,000 | $ 56,100,000 | $ 3,500,000 | |
Value of common stock remaining to be repurchased | $ 374,600,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 20, 2019 | Mar. 28, 2019 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 |
Subsequent Events | |||||
Shares repurchased, aggregate cost | $ 17,587 | $ 56,159 | $ 3,532 | ||
Dividends declared per common share (in dollars per share) | $ 0.9 | $ 0.9 | $ 0.90 | ||
Subsequent events | |||||
Subsequent Events | |||||
Dividends declared per common share (in dollars per share) | $ 0.225 | ||||
Share Repurchase Program | |||||
Subsequent Events | |||||
Share repurchases (in shares) | 1,118,808 | 3,866,387 | 289,968 | ||
Shares repurchased, aggregate cost | $ 17,600 | $ 56,100 | $ 3,500 | ||
Share Repurchase Program | Subsequent events | |||||
Subsequent Events | |||||
Share repurchases (in shares) | 1,000,000 | ||||
Shares repurchased, aggregate cost | $ 18,900 |
SCHEDULE II VALUATION AND QUA_2
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Reconciliation of valuation and qualifying accounts | |||
Balance at Beginning of Period | $ 52,136 | $ 37,645 | $ 35,994 |
Costs Charged to Expenses | 121,651 | 135,525 | 114,327 |
Deductions and Write-offs | (119,909) | (121,034) | (112,676) |
Balance at End of Period | 53,878 | 52,136 | 37,645 |
Allowance for doubtful accounts | |||
Reconciliation of valuation and qualifying accounts | |||
Balance at Beginning of Period | 13,478 | 13,810 | 13,285 |
Costs Charged to Expenses | 2,661 | 9,447 | 7,370 |
Deductions and Write-offs | (7,599) | (9,779) | (6,845) |
Balance at End of Period | 8,540 | 13,478 | 13,810 |
Allowance for markdowns | |||
Reconciliation of valuation and qualifying accounts | |||
Balance at Beginning of Period | 10,777 | 2,944 | 2,196 |
Costs Charged to Expenses | 56,697 | 42,485 | 32,679 |
Deductions and Write-offs | (55,353) | (34,652) | (31,931) |
Balance at End of Period | 12,121 | 10,777 | 2,944 |
Allowance for sales returns | |||
Reconciliation of valuation and qualifying accounts | |||
Balance at Beginning of Period | 27,881 | 20,891 | 20,513 |
Costs Charged to Expenses | 62,293 | 83,593 | 74,278 |
Deductions and Write-offs | (56,957) | (76,603) | (73,900) |
Balance at End of Period | $ 33,217 | $ 27,881 | $ 20,891 |
Uncategorized Items - ges-20190
Label | Element | Value |
Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 268,000 |