Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 31, 2021 | Aug. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | AEO | |
Entity Registrant Name | American Eagle Outfitters, Inc. | |
Entity Central Index Key | 0000919012 | |
Current Fiscal Year End Date | --01-29 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 168,596,724 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Security Exchange Name | NYSE | |
Entity File Number | 1-33338 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-2721761 | |
Entity Address, Address Line One | 77 Hot Metal Street | |
Entity Address, City or Town | Pittsburgh | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 15203-2329 | |
City Area Code | 412 | |
Local Phone Number | 432-3300 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 31, 2021 | Jan. 30, 2021 | Aug. 01, 2020 |
Current assets: | |||
Cash and cash equivalents | $ 773,994 | $ 850,477 | $ 898,787 |
Short-term investments | 50,000 | ||
Merchandise inventory | 503,507 | 405,445 | 421,196 |
Accounts receivable, net | 155,361 | 146,102 | 107,243 |
Prepaid expenses and other | 118,721 | 120,619 | 155,141 |
Total current assets | 1,601,583 | 1,522,643 | 1,582,367 |
Property and equipment, at cost, net of accumulated depreciation | 641,396 | 623,808 | 659,351 |
Operating lease right-of-use assets | 1,103,247 | 1,155,965 | 1,271,491 |
Intangible assets net, including goodwill | 70,620 | 70,332 | 51,432 |
Non-current deferred income taxes | 46,600 | 33,045 | 30,224 |
Other assets | 31,576 | 29,013 | 33,111 |
Total assets | 3,495,022 | 3,434,806 | 3,627,976 |
Current liabilities: | |||
Accounts payable | 221,471 | 255,912 | 295,296 |
Current portion of operating lease liabilities | 288,534 | 328,624 | 348,921 |
Accrued compensation and payroll taxes | 133,185 | 142,272 | 66,131 |
Other current liabilities and accrued expenses | 56,568 | 55,343 | 51,281 |
Unredeemed gift cards and gift certificates | 44,095 | 62,181 | 43,165 |
Accrued income and other taxes | 25,365 | 14,150 | 12,783 |
Dividends payable | 22,837 | ||
Total current liabilities | 769,218 | 858,482 | 840,414 |
Non-current liabilities: | |||
Non-current operating lease liabilities | 1,094,386 | 1,148,742 | 1,253,105 |
Long-term debt, net | 331,680 | 325,290 | 516,953 |
Other non-current liabilities | 24,207 | 15,627 | 19,604 |
Total non-current liabilities | 1,450,273 | 1,489,659 | 1,789,662 |
Commitments and contingencies | |||
Stockholders’ equity: | |||
Preferred stock, $0.01 par value; 5,000 shares authorized; none issued and outstanding | |||
Common stock, $0.01 par value; 600,000 shares authorized; 249,566 shares issued; 168,454, 166,335, and 166,090 shares outstanding, respectively | 2,496 | 2,496 | 2,496 |
Contributed capital | 630,506 | 663,718 | 647,284 |
Accumulated other comprehensive loss | (36,894) | (40,748) | (47,991) |
Retained earnings | 2,058,448 | 1,868,613 | 1,807,687 |
Treasury stock, 81,112, 83,231, and 83,476 shares, respectively | (1,379,025) | (1,407,414) | (1,411,576) |
Total stockholders’ equity | 1,275,531 | 1,086,665 | 997,900 |
Total liabilities and stockholders’ equity | $ 3,495,022 | $ 3,434,806 | $ 3,627,976 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jul. 31, 2021 | Jan. 30, 2021 | Aug. 01, 2020 |
Statement Of Financial Position [Abstract] | |||
Preferred stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 | 0 |
Preferred stock, outstanding | 0 | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 600,000,000 | 600,000,000 | 600,000,000 |
Common stock, shares issued | 249,566,000 | 249,566,000 | 249,566,000 |
Common stock, shares outstanding | 168,454,000 | 166,335,000 | 166,090,000 |
Treasury stock, shares | 81,112,000 | 83,231,000 | 83,476,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | ||||
Income Statement [Abstract] | |||||||
Total net revenue | [1] | $ 1,194,156 | $ 883,510 | $ 2,228,769 | $ 1,435,202 | ||
Cost of sales, including certain buying, occupancy and warehousing expenses | 691,765 | 618,311 | 1,290,188 | 1,141,697 | |||
Gross profit | 502,391 | 265,199 | 938,581 | 293,505 | |||
Selling, general and administrative expenses | 293,939 | 223,711 | 558,430 | 411,908 | |||
Impairment, restructuring and COVID-19 related charges | 0 | 14,611 | [1] | 0 | 170,231 | [1] | |
Depreciation and amortization expense | 40,456 | 39,114 | 78,727 | 81,844 | |||
Operating income (loss) | [1] | 167,996 | (12,237) | 301,424 | (370,478) | ||
Interest expense, net | 8,921 | 8,547 | 17,426 | 8,693 | |||
Other (income) expense, net | (1,363) | (1,554) | (3,223) | 1,429 | |||
Income (loss) before income taxes | 160,438 | (19,230) | 287,221 | (380,600) | |||
Provision (benefit) for income taxes | 38,927 | (5,478) | 70,244 | (109,685) | |||
Net income (loss) | $ 121,511 | $ (13,752) | $ 216,977 | $ (270,915) | |||
Net income (loss) per basic share | $ 0.73 | $ (0.08) | $ 1.29 | $ (1.63) | |||
Net income (loss) per diluted share | $ 0.58 | $ (0.08) | $ 1.04 | $ (1.63) | |||
Weighted average common shares outstanding - basic | 167,491 | 166,315 | 168,036 | 166,461 | |||
Weighted average common shares outstanding - diluted | 208,933 | 166,315 | 208,400 | 166,461 | |||
[1] | The difference between Operating income (loss) and Income (loss) before income taxes includes the following items, which are not allocated to our reportable segments: |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 121,511 | $ (13,752) | $ 216,977 | $ (270,915) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 916 | 7,059 | 3,854 | (14,823) |
Other comprehensive income (loss) | 916 | 7,059 | 3,854 | (14,823) |
Comprehensive income (loss) | $ 122,427 | $ (6,693) | $ 220,831 | $ (285,738) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Contributed Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive (Loss) |
Beginning Balance at Feb. 01, 2020 | $ 1,247,853 | $ 2,496 | $ 577,856 | $ 2,108,292 | $ (1,407,623) | $ (33,168) |
Beginning Balance (in shares) at Feb. 01, 2020 | 166,993,000 | |||||
Stock awards | 15,354 | 15,354 | ||||
Repurchase of common stock as part of publicly announced programs | (20,000) | (20,000) | ||||
Repurchase of common stock as part of publicly announced programs (in shares) | (1,720,000) | |||||
Repurchase of common stock from employees | (5,215) | (5,215) | ||||
Repurchase of common stock from employees (in shares) | (436,000) | |||||
Convertible Notes - Equity portion, net of tax | 68,330 | 68,330 | ||||
Reissuance of treasury stock | (379) | (14,788) | (6,853) | 21,262 | ||
Reissuance of treasury stock, (in shares) | 1,253,000 | |||||
Net income (loss) | (270,915) | (270,915) | ||||
Other comprehensive income (loss) | (14,823) | (14,823) | ||||
Cash dividends declared and dividend equivalents | (22,305) | 532 | (22,837) | |||
Ending Balance at Aug. 01, 2020 | $ 997,900 | $ 2,496 | 647,284 | 1,807,687 | (1,411,576) | (47,991) |
Ending Balance (in shares) at Aug. 01, 2020 | 166,090,000 | 166,090,000 | ||||
Beginning Balance at May. 02, 2020 | $ 996,983 | $ 2,496 | 646,350 | 1,826,413 | (1,423,226) | (55,050) |
Beginning Balance (in shares) at May. 02, 2020 | 165,500,000 | |||||
Stock awards | 11,436 | 11,436 | ||||
Repurchase of common stock from employees | (3,785) | (3,785) | ||||
Repurchase of common stock from employees (in shares) | (322,000) | |||||
Reissuance of treasury stock | (82) | (10,624) | (4,893) | 15,435 | ||
Reissuance of treasury stock, (in shares) | 912,000 | |||||
Net income (loss) | (13,752) | (13,752) | ||||
Other comprehensive income (loss) | 7,059 | 7,059 | ||||
Cash dividends declared and dividend equivalents | 41 | 122 | (81) | |||
Ending Balance at Aug. 01, 2020 | $ 997,900 | $ 2,496 | 647,284 | 1,807,687 | (1,411,576) | (47,991) |
Ending Balance (in shares) at Aug. 01, 2020 | 166,090,000 | 166,090,000 | ||||
Beginning Balance at Jan. 30, 2021 | $ 1,086,665 | $ 2,496 | 663,718 | 1,868,613 | (1,407,414) | (40,748) |
Beginning Balance (in shares) at Jan. 30, 2021 | 166,335,000 | 166,335,000 | ||||
Stock awards | $ 21,454 | 21,454 | ||||
Repurchase of common stock from employees | (17,511) | (17,511) | ||||
Repurchase of common stock from employees (in shares) | (591,000) | |||||
Reissuance of treasury stock | 14,313 | (46,285) | 20,597 | 40,001 | ||
Reissuance of treasury stock, (in shares) | 2,363,000 | |||||
Equity portion of partial extinguishment of Convertible Senior Notes, net of tax | 3,018 | (9,876) | 6,995 | 5,899 | ||
Equity portion of partial extinguishment of Convertible Senior Notes, net of tax, (in shares) | 347,000 | |||||
Net income (loss) | 216,977 | 216,977 | ||||
Other comprehensive income (loss) | 3,854 | 3,854 | ||||
Cash dividends declared and dividend equivalents | (53,239) | 1,495 | (54,734) | |||
Ending Balance at Jul. 01, 2021 | 1,275,531 | $ 2,496 | 630,506 | 2,058,448 | (1,379,025) | (36,894) |
Ending Balance (in shares) at Jul. 01, 2021 | 168,454,000 | |||||
Beginning Balance at Jan. 30, 2021 | $ 1,086,665 | $ 2,496 | 663,718 | 1,868,613 | (1,407,414) | (40,748) |
Beginning Balance (in shares) at Jan. 30, 2021 | 166,335,000 | 166,335,000 | ||||
Net income (loss) | $ 216,977 | |||||
Other comprehensive income (loss) | 3,854 | |||||
Ending Balance at Jul. 31, 2021 | $ 1,275,531 | $ 2,496 | 630,506 | 2,058,448 | (1,379,025) | (36,894) |
Ending Balance (in shares) at Jul. 31, 2021 | 168,454,000 | 168,454,000 | ||||
Beginning Balance at May. 01, 2021 | $ 1,175,563 | $ 2,496 | 648,434 | 1,951,496 | (1,389,053) | (37,810) |
Beginning Balance (in shares) at May. 01, 2021 | 167,671,000 | |||||
Stock awards | 8,901 | 8,901 | ||||
Repurchase of common stock from employees | (6,567) | (6,567) | ||||
Repurchase of common stock from employees (in shares) | (195,000) | |||||
Reissuance of treasury stock | 2,506 | (17,770) | 9,580 | 10,696 | ||
Reissuance of treasury stock, (in shares) | 631,000 | |||||
Equity portion of partial extinguishment of Convertible Senior Notes, net of tax | 3,018 | (9,876) | 6,995 | 5,899 | ||
Equity portion of partial extinguishment of Convertible Senior Notes, net of tax, (in shares) | 347,000 | |||||
Net income (loss) | 121,511 | 121,511 | ||||
Other comprehensive income (loss) | 916 | 916 | ||||
Cash dividends declared and dividend equivalents | (30,317) | 817 | (31,134) | |||
Ending Balance at Jul. 31, 2021 | $ 1,275,531 | $ 2,496 | $ 630,506 | $ 2,058,448 | $ (1,379,025) | $ (36,894) |
Ending Balance (in shares) at Jul. 31, 2021 | 168,454,000 | 168,454,000 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Statement Of Stockholders Equity [Abstract] | ||||
Cash dividends declared and dividend equivalents, Per share | $ 0.1800 | $ 0.1375 | $ 0.3175 | $ 0.1375 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | ||
Operating activities: | |||
Net income (loss) | $ 216,977 | $ (270,915) | |
Adjustments to reconcile net income (loss) to net cash from operating activities: | |||
Depreciation and amortization | 80,822 | 83,305 | |
Share-based compensation | 21,570 | 15,654 | |
Deferred income taxes | (17,108) | (5,437) | |
Loss on impairment of assets | 0 | 153,617 | [1] |
Changes in assets and liabilities: | |||
Merchandise inventory | (96,439) | 22,119 | |
Operating lease assets | 145,537 | 142,564 | |
Operating lease liabilities | (187,602) | (70,831) | |
Other assets | (13,736) | (94,433) | |
Accounts payable | (35,628) | 8,591 | |
Accrued compensation and payroll taxes | (9,132) | 22,797 | |
Accrued and other liabilities | 16,626 | (43,450) | |
Net cash provided by (used for) operating activities | 121,887 | (36,419) | |
Investing activities: | |||
Capital expenditures for property and equipment | (86,205) | (61,402) | |
Purchase of available-for-sale investments | (75,000) | (14,956) | |
Sale of available-for-sale investments | 25,000 | 69,956 | |
Other investing activities | (4,199) | (372) | |
Net cash (used for) investing activities | (140,404) | (6,774) | |
Financing activities: | |||
Repurchase of common stock as part of publicly announced programs | (20,000) | ||
Repurchase of common stock from employees | (17,511) | (5,215) | |
Proceeds from revolving line of credit and convertible senior notes | 736,108 | ||
Principal payments on revolving line of credit | (130,000) | ||
Net proceeds from stock options exercised | 13,065 | ||
Cash dividends paid | (53,239) | ||
Other financing activities | (368) | (682) | |
Net cash (used for) provided by financing activities | (58,053) | 580,211 | |
Effect of exchange rates changes on cash | 87 | (161) | |
Net change in cash and cash equivalents | (76,483) | 536,857 | |
Cash and cash equivalents - beginning of period | 850,477 | 361,930 | |
Cash and cash equivalents - end of period | $ 773,994 | $ 898,787 | |
[1] | During the 26 weeks ended August 1, 2020, the Company recorded asset impairment charges of $153.6 million. Included in this amount are retail store impairment charges of $109.6 million, of which $84.1 million relates to operating lease ROU assets and $25.5 million relates to store property and equipment (fixtures and equipment and leasehold improvements). We also recorded $26.0 million of impairment related charges to certain corporate property and equipment as well as $18.0 million of impairment charges related to certain cost and equity method investments. |
Interim Financial Statements
Interim Financial Statements | 6 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Interim Financial Statements | 1. Interim Financial Statements The accompanying Consolidated Financial Statements of American Eagle Outfitters, Inc. (the “Company,” “we,” ”us,” and “our”) at July 31, 2021 and August 1, 2020 and for the 13- and 26-week periods ended July 31, 2021 and August 1, 2020 have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Certain notes and other information have been condensed or omitted from the interim Consolidated Financial Statements presented in this Quarterly Report on Form 10-Q. Therefore, these Consolidated Financial Statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended January 30, 2021 filed with the Securities and Exchange Commission (the “SEC”) on March 11, 2021 (the “Fiscal 2020 Form 10-K”). In the opinion of the Company’s management, all adjustments (consisting of normal recurring adjustments and those described in the footnotes that follow) considered necessary for a fair presentation have been included. The existence of subsequent events has been evaluated through the filing date of this Quarterly Report on Form 10-Q. Founded in 1977, the Company is a leading multi-brand, global specialty retailer that operates under the American Eagle ® ® TM We also operate Todd Snyder New York, a premium menswear brand, and Unsubscribed, a new brand with a focus on consciously-made, slow fashion launched in Fiscal 2020. We offer a broad assortment of high quality, on-trend apparel, accessories, and personal care products at affordable prices for men and women under the AE brand, and intimates, apparel, active wear, and swim collections under the Aerie brand. We sell directly to consumers through our retail channel, which includes our stores and concession-based shop-within-shops. We operate stores in the U.S., Canada, Mexico, and Hong Kong. We also have license agreements with third parties to operate American Eagle and Aerie stores throughout Asia, Europe, India, Latin America, and the Middle East. The Company operates more than 1,000 retail stores in the U.S. and internationally, online at www.ae.com and www.aerie.com www.toddsnyder.com Historically, our operations have been seasonal, with a large portion of total net revenue and operating income occurring in the third and fourth fiscal quarters, reflecting increased demand during the back-to-school and year-end holiday selling seasons, respectively. Our quarterly results of operations also may fluctuate based upon such factors as the timing of certain holiday seasons, the number and timing of new store openings, the acceptability of seasonal merchandise offerings, the timing and level of markdowns, store closings and remodels, competitive factors, weather and general economic and political conditions. During Fiscal 2020, historic seasonal trends were impacted by consumer behavior due to the coronavirus (“COVID-19”) global pandemic. COVID-19 Pandemic Impacts related to the COVID-19 pandemic have been significantly negative for the retail industry, our Company, our customers, and our associates. We have experienced and may continue to experience significant disruptions to our business due to the COVID-19 pandemic and the related suggested and mandated social distancing and shelter-in-place orders, which initially resulted in the temporary closure of all of our stores and furlough of our associates. During Fiscal 2021 and Fiscal 2020, while stores were impacted by negative mall traffic, we focused on our omni-channel capabilities. As of the 13 and 26 weeks ended July 31, 2021, our stores have re-opened, although we continue to see residual impacts on foot traffic and in-store revenues. The impacts of the COVID-19 pandemic on our business are discussed in further detail within these notes to the Consolidated Financial Statements and within Item 2 of this Quarterly Report on Form 10-Q, of which these notes form a part. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. At July 31, 2021, the Company operated in two reportable segments, American Eagle and Aerie. Fiscal Year Our fiscal year is a 52- or 53-week year that ends on the Saturday nearest to January 31. As used herein, “Fiscal 2021” refers to the 52-week period that will end on January 29, 2022. “Fiscal 2020” refers to the 52-week period ended January 30, 2021. “Fiscal 2019” refers to the 52-week period ended February 1, 2020. Estimates The preparation of financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, our management reviews its estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”), Financial Instruments–Credit Losses In December 2019, the FASB amended Accounting Standards Codification ("ASC") 740, Income Taxes Simplifying the Accounting for Income Taxes In August 2020, the FASB issued ASU 2020-06, Debt with Conversion and Other Options Debt with Conversion and Other Options The Company will adopt ASU 2020-06 at the beginning of Fiscal 2022 using the modified retrospective approach. In April 2020, the Company issued $415 million aggregate principal amount of convertible senior notes due 2025 (the “Notes”). The Notes are currently accounted for under the cash conversion model, which is one of the models being eliminated. The adoption of the standard will result in the Notes being accounted for as a single balance in long-term debt, rather than being accounted for as separate debt and equity components. Subsequently, the adoption of ASU 2020-06 is expected to reduce reported interest expense and, correspondingly, increase reported net income. Additionally, the dilutive effect of the Notes will increase to approximately 48 million dilutive shares, or an incremental 12 million shares compared to the dilutive effect of the Notes as of July 31, 2021, which will reflect the assumed conversion of all outstanding Notes. We do not anticipate a material impact to diluted earnings per share, as a result of the adoption of ASU 2020-06. Foreign Currency Translation In accordance with ASC 830, Foreign Currency Matters Comprehensive Income We are exposed to the impact of foreign exchange rate risk primarily through our Canadian and Mexican operations where the functional currency is the Canadian dollar and Mexican peso, respectively. The impact of all other foreign currencies is currently immaterial to our consolidated financial results. During the 13 weeks ended July 31, 2021, an unrealized gain of $0.9 million is included in accumulated other comprehensive income (loss). During the 26 weeks ended, July 31, 2021, an unrealized gain of $3.9 million is included in accumulated other comprehensive income (loss), primarily related to the rise in the USD to Mexican peso and USD to Canadian dollar exchange rates. Cash and Cash Equivalents and Short-Term Investments The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. Short-term investments classified as available-for-sale include certificates of deposit with a maturity greater than three months, but less than one year. Refer to Note 3 to the Consolidated Financial Statements for information regarding cash and cash equivalents and short-term investments. Receivables The Company maintains an allowance for doubtful accounts for estimated losses from the failure of certain of our customers to make required payments for products or services delivered. The Company estimates this allowance based on the age of the related receivable, knowledge of the financial condition of customers, review of historical and expected future receivables and reserve trends, and other pertinent information. If the financial condition of customers deteriorates or an unfavorable trend in receivable collections is experienced in the future, additional allowances may be required. Historically, the Company’s reserves have approximated actual experience. Merchandise Inventory Merchandise inventory is valued at the lower of average cost or net realizable value, utilizing the retail method. Average cost includes merchandise design and sourcing costs and related expenses. The Company records merchandise receipts when control of the merchandise has transferred to the Company. The Company reviews its inventory levels to identify slow-moving merchandise and generally uses markdowns to clear merchandise. Additionally, the Company estimates a markdown reserve for future planned permanent markdowns related to current inventory. Markdowns may occur when inventory exceeds customer demand for reasons of style, seasonal adaptation, changes in customer preference, lack of consumer acceptance of fashion items, competition, or if it is determined that the inventory in stock will not sell at its current ticketed price. Such markdowns may have a material adverse impact on earnings, depending on the extent and amount of inventory affected. The Company also estimates a shrinkage reserve for the period between the last physical count and the balance sheet date. The estimate for the shrinkage reserve, based on historical results, can be affected by changes in merchandise mix and changes in actual shrinkage trends. Property and Equipment Property and equipment is recorded on the basis of cost with depreciation computed utilizing the straight-line method over the asset’s estimated useful life. The useful lives of our major classes of assets are as follows: Buildings 25 years Leasehold improvements Lesser of 10 years or the term of the lease Fixtures and equipment Information technology Five years Three - five years As of July 31, 2021, the weighted average remaining useful life of our assets was approximately 7.0 years. In accordance with ASC 360, Property, Plant, and Equipment When the Company closes, remodels, or relocates a store prior to the end of its lease term, the remaining net book value of the assets related to the store is recorded as a write-off of assets within depreciation and amortization expense. Refer to Note 6 to the Consolidated Financial Statements for additional information regarding property and equipment and to Note 13 to the Consolidated Financial Statements for additional information regarding impairment charges for the 26 weeks ended August 2, 2020. Intangible Assets, including Goodwill The Company’s goodwill is primarily related to the acquisition of its importing operations, Canada business, and other immaterial acquisitions. In accordance with ASC 350, Intangibles – Goodwill and Other Definite-lived intangible assets are recorded on the basis of cost with amortization computed utilizing the straight-line method over the assets’ estimated useful lives. The Company’s definite-lived intangible assets, which consist primarily of trademark assets, are generally amortized over 15 to 25 years. The Company evaluates definite-lived intangible assets for impairment in accordance with ASC 350 when events or circumstances indicate that the carrying value of the asset may not be recoverable. Such an evaluation includes the estimation of undiscounted future cash flows to be generated by those assets. If the sum of the estimated future undiscounted cash flows is less than the carrying amounts of the assets, then the assets are impaired and are adjusted to their estimated fair value. No definite-lived intangible asset impairment charges were recorded during the 13 or 26 weeks ended July 31, 2021 and August 1, 2020. Refer to Note 7 to the Consolidated Financial Statements for additional information regarding intangible assets, including goodwill. Gift Cards Revenue is not recorded on the issuance of gift cards. The value of a gift card is recorded as a current liability upon issuance, and revenue is recognized when the gift card is redeemed for merchandise. The Company estimates gift card breakage and recognizes revenue in proportion to actual gift card redemptions as a component of total net revenue. The Company determines an estimated gift card breakage rate by continuously evaluating historical redemption data and the time when there is a remote likelihood that a gift card will be redeemed. During the 13 weeks ended July 31, 2021 and August 1, 2020, the Company recorded approximately $2.0 million and $1.6 million, respectively, of revenue related to gift card breakage. During the 26 weeks ending July 31, 2021 and August 1, 2020, the Company recorded $4.4 million and $3.3 million, respectively, of revenue related to gift card breakage. Construction Allowances As part of certain lease agreements for retail stores, the Company receives construction allowances from lessors, which are generally comprised of cash amounts. The Company records a receivable and an adjustment to the operating lease ROU asset at the lease commencement date (date of initial possession of the store). The deferred lease credit is amortized as part of the single lease cost over the term of the original lease (including the pre-opening build-out period). The receivable is reduced as amounts are received from the lessor. Self-Insurance Liability The Company uses a combination of insurance and self-insurance mechanisms for certain losses related to employee medical benefits and worker’s compensation. Costs for self-insurance claims filed and claims incurred but not reported are accrued based on known claims and historical experience. Management believes that it has adequately reserved for its self-insurance liability, which is capped by stop loss contracts with insurance companies. However, any significant variation of future claims from historical trends could cause actual results to differ from the accrued liability. Leases The Company adopted ASC Topic 842, Leases The Company leases all store premises, some of its office space, and certain information technology and office equipment. These leases are generally classified as operating leases. Store leases generally provide for a combination of base rentals and contingent rent based on store sales. Additionally, most leases include lessor incentives such as construction allowances and rent holidays. The Company is typically responsible for tenant occupancy costs including maintenance costs, common area charges, real estate taxes, and certain other expenses. Most leases include one or more options to renew. The exercise of lease renewal options is at the Company’s discretion and is not reasonably certain at lease commencement. When measuring operating lease ROU assets and operating lease liabilities, the Company only includes cash flows related to options to extend or terminate leases once those options are executed. Some leases have variable payments. However, because they are not based on an index or rate, they are not included in the measurement of operating lease ROU assets and operating lease liabilities. When determining the present value of future payments for an operating lease that does not have a readily determinable implicit rate, the Company uses its incremental borrowing rate as of the date of initial possession of the leased asset. Short-term lease payments are recognized on a straight-line basis over the lease term of 12 months or less. No operating lease ROU asset impairments were recorded for the 13 or 26 weeks ended July 31, 2021. There was no operating lease ROU impairment recorded for the 13 weeks ended August 1, 2020. During the 26 weeks ended August 1, 2020, the Company recorded impairment of operating lease ROU assets of $84.1 million. Refer to Note 13 to the Consolidated Financial Statements for additional information regarding the impairment of these assets. Leases Modifications and COVID-19 The FASB staff issued a Q&A document in April 2020 providing guidance on how to apply the lease modification guidance in ASC 842 to rent concessions arising from COVID-19, allowing companies to elect accounting for the concessions as if enforceable rights and obligations existed, regardless of whether they are explicitly stated in the lease contract. Per the FASB staff Q&A guidance, entities may make the elections for any lessor-provided concessions related to the effects of the COVID-19 pandemic (e.g., deferrals of lease payments, cash payments made to the lessee, reduced future lease payments) as long as the concession does not result in a substantial increase in the rights of the lessor or the obligations of the lessee. • For concessions in the form of rent forgiveness, the Company invoked the accounting elections provided by the FASB staff; savings were recorded as a credit to variable rent in the period the amendments became fully executed. • For concessions in the form of deferred payments, the Company did not apply the FASB accounting elections; rent expense was recorded in accordance with ASC 842 and the unpaid amount remained accrued as part of the current operating lease liability. • All other forms of rent concessions followed our normal accounting policy for lease modifications, adhering to the guidance set forth in ASC 842. Co-branded Credit Card The Company offers a co-branded credit card and a private label credit card under the AE and Aerie brands. These credit cards are issued by a third-party bank (the “Bank”) in accordance with a credit card agreement (the “Agreement”). The Company has no liability to the Bank for bad debt expense, provided that purchases are made in accordance with the Bank’s procedures. We receive funding from the Bank based on the Agreement and card activity, which includes payments for new account activations and usage of the credit cards. We recognize revenue for this funding as we fulfill our performance obligations under the Agreement. This revenue is recorded in other revenue, which is a component of total net revenue in our Consolidated Statements of Operations. For further information on the Company’s loyalty program, refer to the Customer Loyalty Program caption below. Customer Loyalty Program In June 2020, the Company launched a highly-digitized loyalty program called Real Rewards by American Eagle and Aerie™ (the “Program”). The Program features both shared and unique benefits for loyalty members and credit card holders. Under the Program, members accumulate points based on purchase activity and earn rewards by reaching certain point thresholds. Members earn rewards in the form of discount savings certificates. Prior to the Program’s launch in June 2020, we also offered additional rewards for key items such as jeans and bras under our previous program, AEO Connected™. Rewards earned are valid through the stated expiration date, which is 60 days from the issuance date of the reward. Rewards not redeemed during the 60-day redemption period are forfeited. Points earned under the Program on purchases at American Eagle and Aerie are accounted for in accordance with ASC 606, Revenue from Contracts with Customers The Company defers a portion of the sales revenue attributed to the loyalty points and recognizes revenue when the points are redeemed or expire, consistent with the requirements of ASC 606. Sales Return Reserve Revenue is recorded net of estimated and actual sales returns and deductions for coupon redemptions and other promotions. The Company records the impact of adjustments to its sales return reserve quarterly within total net revenue and cost of sales. The sales return reserve reflects an estimate of sales returns based on projected merchandise returns determined using historical average return percentages. The presentation on a gross basis consists of a separate right of return asset and liability. These amounts are recorded withi n (i) prepaid expenses and (ii) other current liabilities and accrued expenses, respectively, on the Consolidated Balance Sheets. Income Taxes The Company calculates income taxes in accordance with ASC 740, Income Taxes The Company evaluates its income tax positions in accordance with ASC 740, which prescribes a comprehensive model for recognizing, measuring, presenting, and disclosing in the financial statements tax positions taken or expected to be taken on a tax return, including a decision whether to file or not to file in a particular jurisdiction. Under ASC 740, a tax benefit from an uncertain position may be recognized only if it is “more likely than not” that the position is sustainable based on its technical merits. The calculation of deferred tax assets and liabilities, as well as the decision to recognize a tax benefit from an uncertain position and to establish a valuation allowance, requires management to make estimates and assumptions. The Company believes that its estimates and assumptions are reasonable, although actual results may have a positive or negative material impact on the balances of deferred tax assets and liabilities, valuation allowances, or net income (loss). Refer to Note 10 to the Consolidated Financial Statements for additional information regarding income taxes. Revenue Recognition The Company recognizes revenue pursuant to ASC 606. Revenue is recorded for store sales upon the purchase of merchandise by customers. The Company’s e-commerce operation records revenue upon the customer receipt date of the merchandise. Shipping and handling revenues are included in total net revenue. Sales tax collected from customers is excluded from revenue and is included as part of accrued income and other taxes on the Company’s Consolidated Balance Sheets. Revenue is recorded net of estimated and actual sales returns and promotional price reductions. The Company records the impact of adjustments to its sales return reserve quarterly within total net revenue and cost of sales. The sales return reserve reflects an estimate of sales returns based on projected merchandise returns determined using historical average return percentages. Revenue is not recorded on the issuance of gift cards. A current liability is recorded upon issuance, and revenue is recognized when the gift card is redeemed for merchandise. Additionally, the Company recognizes revenue on unredeemed gift cards based on an estimate of the amounts that will not be redeemed (“gift card breakage”), determined through historical redemption trends. Gift card breakage revenue is recognized in proportion to actual gift card redemptions as a component of total net revenue. For further information on the Company’s gift card program, refer to the Gift Cards caption above. The Company recognizes royalty revenue generated from its license or franchise agreements based on a percentage of merchandise sales by the licensee/franchisee. This revenue is recorded as a component of total net revenue when earned and collection is probable. The Company defers a portion of the sales revenue attributed to loyalty points and recognizes revenue when the points are redeemed or expire, consistent with the requirements of ASC 606. Refer to the Customer Loyalty Program caption above for additional information. Cost of Sales, Including Certain Buying, Occupancy and Warehousing Expenses Cost of sales consists of merchandise costs, including design, sourcing, importing, and inbound freight costs, as well as markdowns, shrinkage, and certain promotional costs (collectively, “merchandise costs”) and buying, occupancy and warehousing costs. Design costs are related to the Company's Design Center operations and include compensation, travel and entertainment, supplies, and samples for our design teams, as well as rent and depreciation for our Design Center. These costs are included in cost of sales as the respective inventory is sold. Buying, occupancy and warehousing costs consist of compensation, employee benefit expenses, and travel and entertainment for our buyers and certain senior merchandising executives; rent and utilities related to our stores, corporate headquarters, distribution centers, and other office space; freight from our distribution centers to the stores; compensation and supplies for our distribution centers, including purchasing, receiving, and inspection costs; and shipping and handling costs related to our e-commerce operation. Gross profit is the difference between total net revenue and cost of sales. Selling, General and Administrative Expenses Selling, general and administrative expenses consist of compensation and employee benefit expenses, including salaries, incentives and related benefits associated with our stores and corporate headquarters. Selling, general and administrative expenses also include advertising costs, supplies for our stores and home office, communication costs, travel and entertainment, equipment leasing costs, and services purchased. Selling, general and administrative expenses do not include compensation, employee benefit expenses and travel for our design, sourcing, and importing teams, our buyers and our distribution centers, as these amounts are recorded in cost of sales. Additionally, selling, general and administrative expenses do not include rent and utilities related to our stores, operating costs of our distribution centers, and shipping and handling costs related to our e-commerce operations, all of which are included in cost of sales. Interest Expense, Net Interest expense, net primarily consists of interest expense related to the Notes and borrowings under the revolving credit facility, as well as interest income from cash, cash equivalents, and short-term investments. Other (Income) Expense, Net Other (income) expense, net consists primarily of gains and losses resulting from foreign currency transactions. Segment Information We have two reportable segments: American Eagle and Aerie. For additional information regarding the Company’s segment and geographic information, refer to Note 12 to the Consolidated Financial Statements. |
Cash and Cash Equivalents and S
Cash and Cash Equivalents and Short-Term Investments | 6 Months Ended |
Jul. 31, 2021 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Cash Equivalents and Short-Term Investments | 3. Cash and Cash Equivalents and Short-Term Investments The following table summarizes the fair market values for the Company’s cash and short-term investments, which are recorded on the Consolidated Balance Sheets: (In thousands) July 31, 2021 January 30, 2021 August 1, 2020 Cash and cash equivalents: Cash $ 498,211 $ 524,970 $ 124,648 Money market securities — — 280,098 Interest bearing deposits 275,783 275,507 494,041 Certificates of deposit — 50,000 — Total cash and cash equivalents $ 773,994 $ 850,477 $ 898,787 Short-term investments Certificates of deposit 50,000 — — Total short-term investments 50,000 — — Total $ 823,994 $ 850,477 $ 898,787 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements ASC 820, Fair Value Measurement Disclosures Financial Instruments Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. In addition, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: • Level 1 — Quoted prices in active markets. • Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s cash equivalents and short-term investments are Level 1 financial assets and are measured at fair value on a recurring basis, for all periods presented. Refer to Note 3 to the Consolidated Financial Statements for additional information regarding cash equivalents and short-term investments. Long-Term Debt As of July 31, 2021, the Company had no outstanding borrowings under its revolving credit facilities, and had $200 million outstanding as of August 1, 2020. In April 2020, the Company issued $415 million aggregate principal amount of convertible senior notes due in 2025. The fair value of the Notes is not required to be measured at fair value on a recurring basis. Upon issuance, the fair value of the Notes was measured using two approaches that consider market related conditions, including market benchmark rates and a secondary market quoted price, and is therefore within Level 2 of the fair value hierarchy. Refer to Note 8 to the Consolidated Financial Statements for additional information regarding long-term debt and other credit arrangements. Non-Financial Assets The Company’s non-financial assets, which include intangible assets and property and equipment, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur and the Company is required to evaluate the non-financial asset for impairment, a resulting impairment would require that the non-financial asset be recorded at the estimated fair value. Certain long-lived assets were measured at fair value on a nonrecurring basis using Level 3 inputs as defined in ASC 820. There were no asset impairment charges recorded during the 13 or 26 weeks ended July 31, 2021. There were no asset impairment charges recorded during the 13 weeks ended August 1, 2020. During the 26 weeks ended August 1, 2020, the Company recorded asset impairment charges of $153.6 million. Included in this amount are retail store impairment charges of $109.6 million, of which $84.1 million relates to operating lease ROU assets and $25.5 million relates to store property and equipment (fixtures and equipment and leasehold improvements). The fair value of the impaired assets was determined by estimating the amount and timing of net future cash flows and discounting them using a risk-adjusted rate of interest and a real estate market participant discount rate for the ROU assets. The Company estimates future cash flows based on its experience and knowledge of the market in which the store is located. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jul. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 5. Earnings per Share The following is a reconciliation between basic and diluted weighted average shares outstanding: 13 Weeks Ended 26 Weeks Ended July 31, August 1, July 31, August 1, (In thousands) 2021 2020 2021 2020 Weighted average common shares outstanding: Basic number of common shares outstanding 167,491 166,315 168,036 166,461 Dilutive effect of convertible notes 36,367 — 35,083 — Dilutive effect of stock options and non-vested restricted stock 5,075 — 5,281 — Diluted number of common shares outstanding 208,933 166,315 208,400 166,461 Anti-Dilutive Shares* 130 8,235 130 4,670 *For each of the 13 and 26 weeks ended August 1, 2020, there were 1.2 million potentially dilutive equity awards that were excluded from diluted earnings per share calculation because the Company incurred a net loss for this period and their inclusion would be anti-dilutive. For each of the 13 and 26 weeks ended August 1, 2020, there were 7.0 million and 3.5 million potentially dilutive shares from the Notes, respectively, that were excluded from the diluted earnings per share calculation because the Company incurred a net loss for this period and their inclusion would be anti-dilutive. The Company has the right to settle the Notes in any combination of cash and shares of common stock. However, the Company intends to settle the original principal portion of the Notes in cash and any conversion value above the principal in common stock. Because of this repayment policy election, only the conversion spread portion of the amount owed is reflected as dilutive in our weighted average diluted shares outstanding. The Company uses the average of the daily closing prices of its common stock (NYSE: AEO) as reported on the New York Stock Exchange to calculate the conversion spread. The Notes could have a potential dilutive effect in future periods. Refer to notes 8 and 9 to the Consolidated Financial Statements for additional information regarding the Notes and share-based compensation, respectively. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jul. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 6. Property and Equipment Property and equipment consists of the following: July 31, January 30, August 1, (In thousands) 2021 2021 2020 Property and equipment, at cost $ 2,330,665 $ 2,250,974 $ 2,225,579 Less: Accumulated depreciation and impairment (1,689,269 ) (1,627,166 ) (1,566,228 ) Property and equipment, net $ 641,396 $ 623,808 $ 659,351 |
Intangible Assets, including Go
Intangible Assets, including Goodwill | 6 Months Ended |
Jul. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, including Goodwill | 7. Intangible Assets, including Goodwill Intangible assets consist of the following: July 31, January 30, August 1, (In thousands) 2021 2021 2020 Goodwill, gross $ 20,561 $ 17,463 $ 17,310 Accumulated impairment (1) (4,196 ) (4,196 ) (4,196 ) Goodwill, net $ 16,365 $ 13,267 $ 13,114 Trademarks, at cost $ 93,335 $ 92,663 $ 72,057 Accumulated amortization (39,080 ) (35,598 ) (33,739 ) Trademarks, net $ 54,255 $ 57,065 $ 38,318 Intangible assets, net, including goodwill $ 70,620 $ 70,332 $ 51,432 (1) Accumulated impairment includes $1.7 million recorded in Fiscal 2019 and $2.5 million recorded in Fiscal 2016. |
Long-Term Debt, Net
Long-Term Debt, Net | 6 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Net | 8. Long-Term Debt, Net Our long-term debt consisted of the following at each of July 31, 2021, January 30, 2021, and August 1, 2020: (In thousands) July 31, 2021 January 30, 2021 August 1, 2020 Convertible senior notes principal $ 412,025 $ 415,025 $ 415,025 Less: unamortized discount 80,345 89,735 98,072 Convertible senior notes, net $ 331,680 $ 325,290 $ 316,953 Revolving credit facility borrowings — — 200,000 Total long-term debt, net $ 331,680 $ 325,290 $ 516,953 Convertible Senior Notes- Equity portion, net of tax 58,454 68,330 68,330 Convertible notes In April 2020, the Company issued $415 million aggregate principal amount of convertible senior notes due in 2025 in a private placement to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933. The Notes have a stated interest rate of 3.75%, payable semi-annually. The Company may redeem the Notes, in whole or in part, at any time beginning April 2023. The Company used the net proceeds from the offering for general corporate purposes. The Company does not have the right to redeem the Notes prior to April 17, 2023. On or after April 17, 2023 and prior to the 40th The Company has the right to settle conversions in any combination of cash and shares of common stock. However, the Company intends to settle the original principal portion of the Notes in cash and any conversion value above the principal in stock . Because of this repayment policy, only the conversion spread portion of the amount owed is reflected as dilutive in earning s per share. The effective interest rate for the Notes is 10.0% and the Company calculated the effective yield using a market approach. The remaining amortization period of the discount is 3.75 years as of July 31, 2021. Interest expense for the Notes was: 13 Weeks Ended 26 Weeks Ended (In thousands) July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 Accrued interest for interest payments $ 3,815 $ 3,903 $ 7,749 $ 4,118 Amortization of discount 4,956 3,982 9,384 4,195 Total interest expense $ 8,771 $ 7,885 $ 17,133 $ 8,313 The following table discloses conversion amounts if the Notes were all converted as of the end of the period: (In thousands, except per share amounts) July 31, 2021 Number of shares convertible 47,907 Conversion price per share $ 8.60 Value in excess of principal if converted $ 1,272,776 Revolving credit facilities In January 2019, the Company entered into an amended and restated Credit Agreement (the “Credit Agreement”) for five-year All obligations under the Credit Facilities are unconditionally guaranteed by certain subsidiaries. The obligations under the Credit Agreement are secured by a first-priority security interest in certain working capital assets of the borrowers and guarantors, consisting primarily of cash, receivables, inventory, and certain other assets and have been further secured by first-priority mortgages on certain real property. As of July 31, 2021, |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 9. Share-Based Compensation The Company accounts for share-based compensation under the provisions of ASC 718, Compensation - Stock Compensation Total share-based compensation expense included in the Consolidated Statements of Operations for the 13 and 26 weeks ended July 31, 2021 Stock Option Grants The Company has granted time-based stock option awards. Time-based stock option awards vest over the requisite service period of the award or to an employee’s eligible retirement eligible date, if earlier. A summary of the Company’s stock option activity for the 26 weeks ended July 31, 2021 follows: Weighted- Average Weighted- Average Remaining Contractual Aggregate Options Exercise Price Term Intrinsic Value (In thousands) (In years) (In thousands) Outstanding - January 30, 2021 3,940 $ 14.87 Granted 449 $ 32.58 Exercised (1) (771 ) $ 16.33 Outstanding - July 31, 2021 3,618 $ 16.76 4.9 $ 64,071 Vested and expected to vest - July 31, 2021 2,778 $ 16.50 3.5 $ 28,599 Exercisable - July 31, 2021 (2) 1,788 $ 16.28 2.0 $ 32,531 (1 ) Options exercised during the 26 weeks ended July 31, 2021 ranged in price from $8.62 to $21.41. (2) Options exercisable represent “in-the-money” vested options based upon the weighted-average exercise price of vested options compared to the Company’s stock price on July 31, 2021. Cash received from the exercise of stock options was As of July 31, 2021, there was $8.6 million of unrecognized compensation expense for stock option awards that is expected to be recognized over a weighted average period of 2.2 years. The fair value of stock options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: 26 Weeks Ended 26 Weeks Ended July 31, August 1, Black-Scholes Option Valuation Assumptions 2021 2020 Risk-free interest rate (1) 0.9% 0.3 - 0.6% Dividend yield 1.6% 3.5 - 6.0% Volatility factor (2) 50.7% 43.1 - 48.7% Weighted-average expected term (3) 4.5 years 4.4 years (1) Based on the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected life of our stock options. (2) Based on historical volatility of the Company’s common stock. (3) Represents the period of time that options are expected to be outstanding. The weighted average expected option terms were determined based on historical experience. Restricted Stock Grants Time-based restricted stock awards are comprised of time-based restricted stock units. These awards vest over three years. Time-based restricted stock units receive dividend equivalents in the form of additional time-based restricted stock units, which are subject to the same restrictions and forfeiture provisions as the original award. Performance-based restricted stock awards include performance-based restricted stock units. These awards cliff vest at the end of a three-year The grant date fair value of time-based restricted stock awards is based on the closing market price of the Company’s common stock on the date of grant. A Monte-Carlo simulation was utilized to determine the fair value for performance-based restricted stock awards. A summary of the Company’s restricted stock activity is presented in the following tables: Time-Based Restricted Stock Units Performance-Based Restricted Stock Units July 31, 2021 July 31, 2021 (Shares in thousands) Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value Nonvested - January 30, 2021 3,698 $ 12.42 1,868 $ 17.44 Granted 657 $ 32.64 320 $ 39.93 Vested (1,268 ) $ 13.45 (275 ) $ 19.48 Cancelled (163 ) $ 12.68 (308 ) $ 16.88 Nonvested - July 31, 2021 2,924 $ 16.30 1,605 $ 23.67 As of July 31, 2021, there was $36.0 million of unrecognized compensation expense related to non-vested, time-based restricted stock unit awards that is expected to be recognized over a weighted-average period of 2.2 years. Based on current probable performance, there is $10.9 million of unrecognized compensation expense related to performance-based restricted stock unit awards which will be recognized as achievement of performance goals is probable over a one- to three- year period. As of July 31, 2021, the Company had 7.6 million shares available for all equity grants. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The provision for income taxes is based on the current estimate of the annual effective income tax rate and is adjusted as necessary for discrete quarterly events. The effective income tax rate for the 13 weeks ended July 31, 2021 was 24.3% compared to the effective tax benefit rate of 28.5% for the 13 weeks ended August 1, 2020. The effective income tax rate for the 26 weeks ended July 31, 2021 was 24.5% compared to the effective tax benefit rate of 28.8% for the 26 weeks ended August 1, 2020. The change in the effective tax rate, as compared to the prior period, is primarily due to benefits recognized as a result of the passage of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which occurred in the 13 weeks ended August 1, 2020. The CARES Act allowed net operating losses generated within tax year 2020 to be carried back to periods in which the U.S. federal corporate income tax rate was 35%, as opposed to the current U.S. federal corporate income tax rate of 21%, which resulted in a higher benefit rate applicable to the 13 weeks ended August 1, 2020. The effective tax rate for the current period was also impacted by higher excess tax benefits on share-based payments. The Company records accrued interest and penalties related to unrecognized tax benefits in income tax expense. The Company recognizes income tax liabilities related to unrecognized tax benefits in accordance with ASC 740 and adjusts these liabilities when its judgment changes as a result of the evaluation of new information not previously available. Unrecognized tax benefits did not change significantly during the 13 weeks ended July 31, 2021. Over the next twelve months, the Company believes that it is reasonably possible that unrecognized tax benefits may decrease by approximately $0.6 million due to settlements, expiration of statute of limitations, or other changes in unrecognized tax benefits. |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Jul. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal Proceedings | 11. Legal Proceedings The Company is subject to certain legal proceedings and claims arising out of the conduct of its business. In accordance with ASC 450, Contingencies |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jul. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | 12. Segment Reporting In accordance with ASC 280, Segment Reporting (“ASC 280”), the Company has identified two operating segments (American Eagle and Aerie) that also represent our reportable segments and reflect the Chief Operating Decision Maker’s (defined as our CEO) internal view of analyzing results and allocating resources. Historically, all operating segments were aggregated as permitted by ASC 280 as one reportable segment. In the fourth quarter of Fiscal 2020, we revised our reportable segment structure and have two reportable segments, American Eagle and Aerie. Our CEO analyzes segment results and allocates resources based on adjusted operating income (loss). Adjusted operating income (loss) is defined as operating income (loss) excluding impairment, restructuring and COVID-19 related charges. Adjusted operating income (loss) may not be comparable to similarly titled measures of other companies. Adjusted operating income (loss) on a consolidated basis is presented in the following table to reconcile the segment operating performance measure to operating income (loss) as presented on the Consolidated Financial Statements. (in thousands) American Eagle Aerie Corporate (1) Total (2) 13 weeks ended July 31, 2021 Total net revenue $ 845,882 $ 335,795 $ 12,479 $ 1,194,156 Operating income (loss) $ 198,896 $ 70,646 $ (101,546 ) $ 167,996 Capital Expenditures $ 17,189 $ 16,641 $ 15,569 $ 49,399 13 weeks ended August 1, 2020 Total net revenue $ 624,831 $ 251,511 $ 7,168 $ 883,510 Operating income (loss) $ 59,603 $ 30,404 $ (102,244 ) $ (12,237 ) Impairment, restructuring, and COVID-19 related charges - - 14,611 14,611 Adjusted operating income (loss) $ 59,603 $ 30,404 $ (87,633 ) $ 2,374 Capital Expenditures $ 6,774 $ 8,620 $ 12,098 $ 27,492 26 weeks ended July 31, 2021 Total net revenue $ 1,573,584 $ 633,282 $ 21,903 $ 2,228,769 Operating income (loss) $ 350,128 $ 140,624 $ (189,328 ) $ 301,424 Capital Expenditures $ 30,628 $ 27,460 $ 28,117 $ 86,205 26 weeks ended August 1, 2020 Total net revenue $ 1,015,081 $ 406,492 $ 13,629 $ 1,435,202 Operating income (loss) $ (154,146 ) $ 11,275 $ (227,607 ) $ (370,478 ) Impairment, restructuring, and COVID-19 related charges 90,926 18,215 61,090 170,231 Adjusted operating income (loss) $ (63,220 ) $ 29,490 $ (166,517 ) $ (200,247 ) Capital Expenditures $ 14,873 $ 17,408 $ 29,121 $ 61,402 (1) Corporate includes revenue and operating results of the Todd Snyder and Unsubscribed brands, which are not material to disclose as separate reportable segments. Corporate operating costs represents certain costs that are not directly attributable to another reportable segment. (2) The difference between Operating income (loss) and Income (loss) before income taxes includes the following items, which are not allocated to our reportable segments: We do not allocate assets to the reportable segment level and therefore our CEO does not use segment asset information to make decisions. The following table present summarized geographical information: 13 Weeks Ended 26 Weeks Ended (In thousands) July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 Total net revenue: United States $ 1,030,308 $ 780,028 $ 1,939,966 $ 1,268,904 Foreign (1) 163,848 103,482 288,803 166,298 Total net revenue $ 1,194,156 $ 883,510 $ 2,228,769 $ 1,435,202 (1) Amounts represent sales from American Eagle and Aerie international retail stores, e-commerce sales that are billed and/or shipped to foreign countries and international license royalty revenue. |
Impairment, Restructuring and C
Impairment, Restructuring and COVID-19 Related Charges | 6 Months Ended |
Jul. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Impairment, Restructuring and COVID-19 Related Charges | 13. Impairment, Restructuring and COVID-19 Related Charges The following table represents impairment, restructuring and COVID-19 related charges for the 13 and 26 weeks ended August 1, 2020. There were no impairment, restructuring and COVID-19 related charges for the 13 and 26 weeks ended July 31, 2021. All amounts were recorded within impairment, restructuring and COVID-19 related charges on the Consolidated Statements of Operations. 13 Weeks Ended 26 Weeks Ended August 1, August 1, (In thousands) 2020 2020 Impairment charges (1) $ — $ 153,617 Incremental COVID-19 related expenses (2) 13,885 13,885 Severance and related employee costs 726 2,729 Total impairment, restructuring and COVID-19 related charges $ 14,611 $ 170,231 (1) During the 26 weeks ended August 1, 2020, the Company recorded asset impairment charges of $153.6 million. Included in this amount are retail store impairment charges of $109.6 million, of which $84.1 million relates to operating lease ROU assets and $25.5 million relates to store property and equipment (fixtures and equipment and leasehold improvements). We also recorded $26.0 million of impairment related charges to certain corporate property and equipment as well as $18.0 million of impairment charges related to certain cost and equity method investments. (2) Incremental COVID-19 related expenses consist of personal protective equipment and supplies for our associates and customers. A roll-forward of restructuring liabilities recognized in accrued compensation and payroll taxes and other current liabilities and accrued expenses in the Consolidated Balance Sheet is as follows: 26 Weeks Ended July 31, (In thousands) 2021 Restructuring liability as of January 30, 2021 $ 2,812 Add: Costs incurred, excluding non-cash charges — Less: Cash payments and adjustments (1,857 ) Restructuring liability as of July 31, 2021 $ 955 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. At July 31, 2021, the Company operated in two reportable segments, American Eagle and Aerie. |
Fiscal Year | Fiscal Year Our fiscal year is a 52- or 53-week year that ends on the Saturday nearest to January 31. As used herein, “Fiscal 2021” refers to the 52-week period that will end on January 29, 2022. “Fiscal 2020” refers to the 52-week period ended January 30, 2021. “Fiscal 2019” refers to the 52-week period ended February 1, 2020. |
Estimates | Estimates The preparation of financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, our management reviews its estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”), Financial Instruments–Credit Losses In December 2019, the FASB amended Accounting Standards Codification ("ASC") 740, Income Taxes Simplifying the Accounting for Income Taxes In August 2020, the FASB issued ASU 2020-06, Debt with Conversion and Other Options Debt with Conversion and Other Options The Company will adopt ASU 2020-06 at the beginning of Fiscal 2022 using the modified retrospective approach. In April 2020, the Company issued $415 million aggregate principal amount of convertible senior notes due 2025 (the “Notes”). The Notes are currently accounted for under the cash conversion model, which is one of the models being eliminated. The adoption of the standard will result in the Notes being accounted for as a single balance in long-term debt, rather than being accounted for as separate debt and equity components. Subsequently, the adoption of ASU 2020-06 is expected to reduce reported interest expense and, correspondingly, increase reported net income. Additionally, the dilutive effect of the Notes will increase to approximately 48 million dilutive shares, or an incremental 12 million shares compared to the dilutive effect of the Notes as of July 31, 2021, which will reflect the assumed conversion of all outstanding Notes. We do not anticipate a material impact to diluted earnings per share, as a result of the adoption of ASU 2020-06. |
Foreign Currency Translation | Foreign Currency Translation In accordance with ASC 830, Foreign Currency Matters Comprehensive Income We are exposed to the impact of foreign exchange rate risk primarily through our Canadian and Mexican operations where the functional currency is the Canadian dollar and Mexican peso, respectively. The impact of all other foreign currencies is currently immaterial to our consolidated financial results. During the 13 weeks ended July 31, 2021, an unrealized gain of $0.9 million is included in accumulated other comprehensive income (loss). During the 26 weeks ended, July 31, 2021, an unrealized gain of $3.9 million is included in accumulated other comprehensive income (loss), primarily related to the rise in the USD to Mexican peso and USD to Canadian dollar exchange rates. |
Cash and Cash Equivalents and Short-Term Investments | Cash and Cash Equivalents and Short-Term Investments The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. Short-term investments classified as available-for-sale include certificates of deposit with a maturity greater than three months, but less than one year. Refer to Note 3 to the Consolidated Financial Statements for information regarding cash and cash equivalents and short-term investments. |
Receivables | Receivables The Company maintains an allowance for doubtful accounts for estimated losses from the failure of certain of our customers to make required payments for products or services delivered. The Company estimates this allowance based on the age of the related receivable, knowledge of the financial condition of customers, review of historical and expected future receivables and reserve trends, and other pertinent information. If the financial condition of customers deteriorates or an unfavorable trend in receivable collections is experienced in the future, additional allowances may be required. Historically, the Company’s reserves have approximated actual experience. |
Merchandise Inventory | Merchandise Inventory Merchandise inventory is valued at the lower of average cost or net realizable value, utilizing the retail method. Average cost includes merchandise design and sourcing costs and related expenses. The Company records merchandise receipts when control of the merchandise has transferred to the Company. The Company reviews its inventory levels to identify slow-moving merchandise and generally uses markdowns to clear merchandise. Additionally, the Company estimates a markdown reserve for future planned permanent markdowns related to current inventory. Markdowns may occur when inventory exceeds customer demand for reasons of style, seasonal adaptation, changes in customer preference, lack of consumer acceptance of fashion items, competition, or if it is determined that the inventory in stock will not sell at its current ticketed price. Such markdowns may have a material adverse impact on earnings, depending on the extent and amount of inventory affected. The Company also estimates a shrinkage reserve for the period between the last physical count and the balance sheet date. The estimate for the shrinkage reserve, based on historical results, can be affected by changes in merchandise mix and changes in actual shrinkage trends. |
Property and Equipment | Property and Equipment Property and equipment is recorded on the basis of cost with depreciation computed utilizing the straight-line method over the asset’s estimated useful life. The useful lives of our major classes of assets are as follows: Buildings 25 years Leasehold improvements Lesser of 10 years or the term of the lease Fixtures and equipment Information technology Five years Three - five years As of July 31, 2021, the weighted average remaining useful life of our assets was approximately 7.0 years. In accordance with ASC 360, Property, Plant, and Equipment When the Company closes, remodels, or relocates a store prior to the end of its lease term, the remaining net book value of the assets related to the store is recorded as a write-off of assets within depreciation and amortization expense. Refer to Note 6 to the Consolidated Financial Statements for additional information regarding property and equipment and to Note 13 to the Consolidated Financial Statements for additional information regarding impairment charges for the 26 weeks ended August 2, 2020. |
Intangible Assets, including Goodwill | Intangible Assets, including Goodwill The Company’s goodwill is primarily related to the acquisition of its importing operations, Canada business, and other immaterial acquisitions. In accordance with ASC 350, Intangibles – Goodwill and Other Definite-lived intangible assets are recorded on the basis of cost with amortization computed utilizing the straight-line method over the assets’ estimated useful lives. The Company’s definite-lived intangible assets, which consist primarily of trademark assets, are generally amortized over 15 to 25 years. The Company evaluates definite-lived intangible assets for impairment in accordance with ASC 350 when events or circumstances indicate that the carrying value of the asset may not be recoverable. Such an evaluation includes the estimation of undiscounted future cash flows to be generated by those assets. If the sum of the estimated future undiscounted cash flows is less than the carrying amounts of the assets, then the assets are impaired and are adjusted to their estimated fair value. No definite-lived intangible asset impairment charges were recorded during the 13 or 26 weeks ended July 31, 2021 and August 1, 2020. Refer to Note 7 to the Consolidated Financial Statements for additional information regarding intangible assets, including goodwill. |
Gift Cards | Gift Cards Revenue is not recorded on the issuance of gift cards. The value of a gift card is recorded as a current liability upon issuance, and revenue is recognized when the gift card is redeemed for merchandise. The Company estimates gift card breakage and recognizes revenue in proportion to actual gift card redemptions as a component of total net revenue. The Company determines an estimated gift card breakage rate by continuously evaluating historical redemption data and the time when there is a remote likelihood that a gift card will be redeemed. During the 13 weeks ended July 31, 2021 and August 1, 2020, the Company recorded approximately $2.0 million and $1.6 million, respectively, of revenue related to gift card breakage. During the 26 weeks ending July 31, 2021 and August 1, 2020, the Company recorded $4.4 million and $3.3 million, respectively, of revenue related to gift card breakage. |
Construction Allowances | Construction Allowances As part of certain lease agreements for retail stores, the Company receives construction allowances from lessors, which are generally comprised of cash amounts. The Company records a receivable and an adjustment to the operating lease ROU asset at the lease commencement date (date of initial possession of the store). The deferred lease credit is amortized as part of the single lease cost over the term of the original lease (including the pre-opening build-out period). The receivable is reduced as amounts are received from the lessor. |
Self-Insurance Liability | Self-Insurance Liability The Company uses a combination of insurance and self-insurance mechanisms for certain losses related to employee medical benefits and worker’s compensation. Costs for self-insurance claims filed and claims incurred but not reported are accrued based on known claims and historical experience. Management believes that it has adequately reserved for its self-insurance liability, which is capped by stop loss contracts with insurance companies. However, any significant variation of future claims from historical trends could cause actual results to differ from the accrued liability. |
Leases | Leases The Company adopted ASC Topic 842, Leases The Company leases all store premises, some of its office space, and certain information technology and office equipment. These leases are generally classified as operating leases. Store leases generally provide for a combination of base rentals and contingent rent based on store sales. Additionally, most leases include lessor incentives such as construction allowances and rent holidays. The Company is typically responsible for tenant occupancy costs including maintenance costs, common area charges, real estate taxes, and certain other expenses. Most leases include one or more options to renew. The exercise of lease renewal options is at the Company’s discretion and is not reasonably certain at lease commencement. When measuring operating lease ROU assets and operating lease liabilities, the Company only includes cash flows related to options to extend or terminate leases once those options are executed. Some leases have variable payments. However, because they are not based on an index or rate, they are not included in the measurement of operating lease ROU assets and operating lease liabilities. When determining the present value of future payments for an operating lease that does not have a readily determinable implicit rate, the Company uses its incremental borrowing rate as of the date of initial possession of the leased asset. Short-term lease payments are recognized on a straight-line basis over the lease term of 12 months or less. No operating lease ROU asset impairments were recorded for the 13 or 26 weeks ended July 31, 2021. There was no operating lease ROU impairment recorded for the 13 weeks ended August 1, 2020. During the 26 weeks ended August 1, 2020, the Company recorded impairment of operating lease ROU assets of $84.1 million. Refer to Note 13 to the Consolidated Financial Statements for additional information regarding the impairment of these assets. Leases Modifications and COVID-19 The FASB staff issued a Q&A document in April 2020 providing guidance on how to apply the lease modification guidance in ASC 842 to rent concessions arising from COVID-19, allowing companies to elect accounting for the concessions as if enforceable rights and obligations existed, regardless of whether they are explicitly stated in the lease contract. Per the FASB staff Q&A guidance, entities may make the elections for any lessor-provided concessions related to the effects of the COVID-19 pandemic (e.g., deferrals of lease payments, cash payments made to the lessee, reduced future lease payments) as long as the concession does not result in a substantial increase in the rights of the lessor or the obligations of the lessee. • For concessions in the form of rent forgiveness, the Company invoked the accounting elections provided by the FASB staff; savings were recorded as a credit to variable rent in the period the amendments became fully executed. • For concessions in the form of deferred payments, the Company did not apply the FASB accounting elections; rent expense was recorded in accordance with ASC 842 and the unpaid amount remained accrued as part of the current operating lease liability. • All other forms of rent concessions followed our normal accounting policy for lease modifications, adhering to the guidance set forth in ASC 842. |
Co-Branded Credit Card | Co-branded Credit Card The Company offers a co-branded credit card and a private label credit card under the AE and Aerie brands. These credit cards are issued by a third-party bank (the “Bank”) in accordance with a credit card agreement (the “Agreement”). The Company has no liability to the Bank for bad debt expense, provided that purchases are made in accordance with the Bank’s procedures. We receive funding from the Bank based on the Agreement and card activity, which includes payments for new account activations and usage of the credit cards. We recognize revenue for this funding as we fulfill our performance obligations under the Agreement. This revenue is recorded in other revenue, which is a component of total net revenue in our Consolidated Statements of Operations. For further information on the Company’s loyalty program, refer to the Customer Loyalty Program caption below. |
Customer Loyalty Program | Customer Loyalty Program In June 2020, the Company launched a highly-digitized loyalty program called Real Rewards by American Eagle and Aerie™ (the “Program”). The Program features both shared and unique benefits for loyalty members and credit card holders. Under the Program, members accumulate points based on purchase activity and earn rewards by reaching certain point thresholds. Members earn rewards in the form of discount savings certificates. Prior to the Program’s launch in June 2020, we also offered additional rewards for key items such as jeans and bras under our previous program, AEO Connected™. Rewards earned are valid through the stated expiration date, which is 60 days from the issuance date of the reward. Rewards not redeemed during the 60-day redemption period are forfeited. Points earned under the Program on purchases at American Eagle and Aerie are accounted for in accordance with ASC 606, Revenue from Contracts with Customers The Company defers a portion of the sales revenue attributed to the loyalty points and recognizes revenue when the points are redeemed or expire, consistent with the requirements of ASC 606. |
Sales Return Reserve | Sales Return Reserve Revenue is recorded net of estimated and actual sales returns and deductions for coupon redemptions and other promotions. The Company records the impact of adjustments to its sales return reserve quarterly within total net revenue and cost of sales. The sales return reserve reflects an estimate of sales returns based on projected merchandise returns determined using historical average return percentages. The presentation on a gross basis consists of a separate right of return asset and liability. These amounts are recorded withi n (i) prepaid expenses and (ii) other current liabilities and accrued expenses, respectively, on the Consolidated Balance Sheets. |
Income Taxes | Income Taxes The Company calculates income taxes in accordance with ASC 740, Income Taxes The Company evaluates its income tax positions in accordance with ASC 740, which prescribes a comprehensive model for recognizing, measuring, presenting, and disclosing in the financial statements tax positions taken or expected to be taken on a tax return, including a decision whether to file or not to file in a particular jurisdiction. Under ASC 740, a tax benefit from an uncertain position may be recognized only if it is “more likely than not” that the position is sustainable based on its technical merits. The calculation of deferred tax assets and liabilities, as well as the decision to recognize a tax benefit from an uncertain position and to establish a valuation allowance, requires management to make estimates and assumptions. The Company believes that its estimates and assumptions are reasonable, although actual results may have a positive or negative material impact on the balances of deferred tax assets and liabilities, valuation allowances, or net income (loss). Refer to Note 10 to the Consolidated Financial Statements for additional information regarding income taxes. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue pursuant to ASC 606. Revenue is recorded for store sales upon the purchase of merchandise by customers. The Company’s e-commerce operation records revenue upon the customer receipt date of the merchandise. Shipping and handling revenues are included in total net revenue. Sales tax collected from customers is excluded from revenue and is included as part of accrued income and other taxes on the Company’s Consolidated Balance Sheets. Revenue is recorded net of estimated and actual sales returns and promotional price reductions. The Company records the impact of adjustments to its sales return reserve quarterly within total net revenue and cost of sales. The sales return reserve reflects an estimate of sales returns based on projected merchandise returns determined using historical average return percentages. Revenue is not recorded on the issuance of gift cards. A current liability is recorded upon issuance, and revenue is recognized when the gift card is redeemed for merchandise. Additionally, the Company recognizes revenue on unredeemed gift cards based on an estimate of the amounts that will not be redeemed (“gift card breakage”), determined through historical redemption trends. Gift card breakage revenue is recognized in proportion to actual gift card redemptions as a component of total net revenue. For further information on the Company’s gift card program, refer to the Gift Cards caption above. The Company recognizes royalty revenue generated from its license or franchise agreements based on a percentage of merchandise sales by the licensee/franchisee. This revenue is recorded as a component of total net revenue when earned and collection is probable. The Company defers a portion of the sales revenue attributed to loyalty points and recognizes revenue when the points are redeemed or expire, consistent with the requirements of ASC 606. Refer to the Customer Loyalty Program caption above for additional information. |
Cost of Sales, Including Certain Buying, Occupancy and Warehousing Expenses | Cost of Sales, Including Certain Buying, Occupancy and Warehousing Expenses Cost of sales consists of merchandise costs, including design, sourcing, importing, and inbound freight costs, as well as markdowns, shrinkage, and certain promotional costs (collectively, “merchandise costs”) and buying, occupancy and warehousing costs. Design costs are related to the Company's Design Center operations and include compensation, travel and entertainment, supplies, and samples for our design teams, as well as rent and depreciation for our Design Center. These costs are included in cost of sales as the respective inventory is sold. Buying, occupancy and warehousing costs consist of compensation, employee benefit expenses, and travel and entertainment for our buyers and certain senior merchandising executives; rent and utilities related to our stores, corporate headquarters, distribution centers, and other office space; freight from our distribution centers to the stores; compensation and supplies for our distribution centers, including purchasing, receiving, and inspection costs; and shipping and handling costs related to our e-commerce operation. Gross profit is the difference between total net revenue and cost of sales. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses consist of compensation and employee benefit expenses, including salaries, incentives and related benefits associated with our stores and corporate headquarters. Selling, general and administrative expenses also include advertising costs, supplies for our stores and home office, communication costs, travel and entertainment, equipment leasing costs, and services purchased. Selling, general and administrative expenses do not include compensation, employee benefit expenses and travel for our design, sourcing, and importing teams, our buyers and our distribution centers, as these amounts are recorded in cost of sales. Additionally, selling, general and administrative expenses do not include rent and utilities related to our stores, operating costs of our distribution centers, and shipping and handling costs related to our e-commerce operations, all of which are included in cost of sales. |
Interest Expense, Net | Interest Expense, Net Interest expense, net primarily consists of interest expense related to the Notes and borrowings under the revolving credit facility, as well as interest income from cash, cash equivalents, and short-term investments. |
Other (Income) Expense, Net | Other (Income) Expense, Net Other (income) expense, net consists primarily of gains and losses resulting from foreign currency transactions. |
Segment Information | Segment Information We have two reportable segments: American Eagle and Aerie. For additional information regarding the Company’s segment and geographic information, refer to Note 12 to the Consolidated Financial Statements. |
Fair Value Measurements | ASC 820, Fair Value Measurement Disclosures Financial Instruments Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. In addition, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: • Level 1 — Quoted prices in active markets. • Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Share-Based Compensation | The Company accounts for share-based compensation under the provisions of ASC 718, Compensation - Stock Compensation |
Legal Proceedings | The Company is subject to certain legal proceedings and claims arising out of the conduct of its business. In accordance with ASC 450, Contingencies |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Useful Lives of Major Classes of Assets | The useful lives of our major classes of assets are as follows: Buildings 25 years Leasehold improvements Lesser of 10 years or the term of the lease Fixtures and equipment Information technology Five years Three - five years |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Cash And Cash Equivalents [Abstract] | |
Fair Market Values for Cash and Short-term Investments | The following table summarizes the fair market values for the Company’s cash and short-term investments, which are recorded on the Consolidated Balance Sheets: (In thousands) July 31, 2021 January 30, 2021 August 1, 2020 Cash and cash equivalents: Cash $ 498,211 $ 524,970 $ 124,648 Money market securities — — 280,098 Interest bearing deposits 275,783 275,507 494,041 Certificates of deposit — 50,000 — Total cash and cash equivalents $ 773,994 $ 850,477 $ 898,787 Short-term investments Certificates of deposit 50,000 — — Total short-term investments 50,000 — — Total $ 823,994 $ 850,477 $ 898,787 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation Between Basic and Diluted Weighted Average Shares Outstanding | The following is a reconciliation between basic and diluted weighted average shares outstanding: 13 Weeks Ended 26 Weeks Ended July 31, August 1, July 31, August 1, (In thousands) 2021 2020 2021 2020 Weighted average common shares outstanding: Basic number of common shares outstanding 167,491 166,315 168,036 166,461 Dilutive effect of convertible notes 36,367 — 35,083 — Dilutive effect of stock options and non-vested restricted stock 5,075 — 5,281 — Diluted number of common shares outstanding 208,933 166,315 208,400 166,461 Anti-Dilutive Shares* 130 8,235 130 4,670 *For each of the 13 and 26 weeks ended August 1, 2020, there were 1.2 million potentially dilutive equity awards that were excluded from diluted earnings per share calculation because the Company incurred a net loss for this period and their inclusion would be anti-dilutive. For each of the 13 and 26 weeks ended August 1, 2020, there were 7.0 million and 3.5 million potentially dilutive shares from the Notes, respectively, that were excluded from the diluted earnings per share calculation because the Company incurred a net loss for this period and their inclusion would be anti-dilutive. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Property and equipment consists of the following: July 31, January 30, August 1, (In thousands) 2021 2021 2020 Property and equipment, at cost $ 2,330,665 $ 2,250,974 $ 2,225,579 Less: Accumulated depreciation and impairment (1,689,269 ) (1,627,166 ) (1,566,228 ) Property and equipment, net $ 641,396 $ 623,808 $ 659,351 |
Intangible Assets, including _2
Intangible Assets, including Goodwill (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Including Goodwill | Intangible assets consist of the following: July 31, January 30, August 1, (In thousands) 2021 2021 2020 Goodwill, gross $ 20,561 $ 17,463 $ 17,310 Accumulated impairment (1) (4,196 ) (4,196 ) (4,196 ) Goodwill, net $ 16,365 $ 13,267 $ 13,114 Trademarks, at cost $ 93,335 $ 92,663 $ 72,057 Accumulated amortization (39,080 ) (35,598 ) (33,739 ) Trademarks, net $ 54,255 $ 57,065 $ 38,318 Intangible assets, net, including goodwill $ 70,620 $ 70,332 $ 51,432 (1) Accumulated impairment includes $1.7 million recorded in Fiscal 2019 and $2.5 million recorded in Fiscal 2016. |
Long-Term Debt, Net (Tables)
Long-Term Debt, Net (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Our long-term debt consisted of the following at each of July 31, 2021, January 30, 2021, and August 1, 2020: (In thousands) July 31, 2021 January 30, 2021 August 1, 2020 Convertible senior notes principal $ 412,025 $ 415,025 $ 415,025 Less: unamortized discount 80,345 89,735 98,072 Convertible senior notes, net $ 331,680 $ 325,290 $ 316,953 Revolving credit facility borrowings — — 200,000 Total long-term debt, net $ 331,680 $ 325,290 $ 516,953 Convertible Senior Notes- Equity portion, net of tax 58,454 68,330 68,330 |
Schedule of Interest Expense for Notes | Interest expense for the Notes was: 13 Weeks Ended 26 Weeks Ended (In thousands) July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 Accrued interest for interest payments $ 3,815 $ 3,903 $ 7,749 $ 4,118 Amortization of discount 4,956 3,982 9,384 4,195 Total interest expense $ 8,771 $ 7,885 $ 17,133 $ 8,313 |
Schedule of Notes Conversion Amounts | The following table discloses conversion amounts if the Notes were all converted as of the end of the period: (In thousands, except per share amounts) July 31, 2021 Number of shares convertible 47,907 Conversion price per share $ 8.60 Value in excess of principal if converted $ 1,272,776 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | A summary of the Company’s stock option activity for the 26 weeks ended July 31, 2021 follows: Weighted- Average Weighted- Average Remaining Contractual Aggregate Options Exercise Price Term Intrinsic Value (In thousands) (In years) (In thousands) Outstanding - January 30, 2021 3,940 $ 14.87 Granted 449 $ 32.58 Exercised (1) (771 ) $ 16.33 Outstanding - July 31, 2021 3,618 $ 16.76 4.9 $ 64,071 Vested and expected to vest - July 31, 2021 2,778 $ 16.50 3.5 $ 28,599 Exercisable - July 31, 2021 (2) 1,788 $ 16.28 2.0 $ 32,531 (1 ) Options exercised during the 26 weeks ended July 31, 2021 ranged in price from $8.62 to $21.41. (2) Options exercisable represent “in-the-money” vested options based upon the weighted-average exercise price of vested options compared to the Company’s stock price on July 31, 2021. |
Black-Scholes Option Valuation Assumptions | The fair value of stock options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: 26 Weeks Ended 26 Weeks Ended July 31, August 1, Black-Scholes Option Valuation Assumptions 2021 2020 Risk-free interest rate (1) 0.9% 0.3 - 0.6% Dividend yield 1.6% 3.5 - 6.0% Volatility factor (2) 50.7% 43.1 - 48.7% Weighted-average expected term (3) 4.5 years 4.4 years (1) Based on the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected life of our stock options. (2) Based on historical volatility of the Company’s common stock. (3) Represents the period of time that options are expected to be outstanding. The weighted average expected option terms were determined based on historical experience. |
Summary of Restricted Stock Activity | A summary of the Company’s restricted stock activity is presented in the following tables: Time-Based Restricted Stock Units Performance-Based Restricted Stock Units July 31, 2021 July 31, 2021 (Shares in thousands) Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value Nonvested - January 30, 2021 3,698 $ 12.42 1,868 $ 17.44 Granted 657 $ 32.64 320 $ 39.93 Vested (1,268 ) $ 13.45 (275 ) $ 19.48 Cancelled (163 ) $ 12.68 (308 ) $ 16.88 Nonvested - July 31, 2021 2,924 $ 16.30 1,605 $ 23.67 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Segment Reporting [Abstract] | |
Reconcile Segment Operating Performance Measure Operating Income (Loss) | Our CEO analyzes segment results and allocates resources based on adjusted operating income (loss). Adjusted operating income (loss) is defined as operating income (loss) excluding impairment, restructuring and COVID-19 related charges. Adjusted operating income (loss) may not be comparable to similarly titled measures of other companies. Adjusted operating income (loss) on a consolidated basis is presented in the following table to reconcile the segment operating performance measure to operating income (loss) as presented on the Consolidated Financial Statements. (in thousands) American Eagle Aerie Corporate (1) Total (2) 13 weeks ended July 31, 2021 Total net revenue $ 845,882 $ 335,795 $ 12,479 $ 1,194,156 Operating income (loss) $ 198,896 $ 70,646 $ (101,546 ) $ 167,996 Capital Expenditures $ 17,189 $ 16,641 $ 15,569 $ 49,399 13 weeks ended August 1, 2020 Total net revenue $ 624,831 $ 251,511 $ 7,168 $ 883,510 Operating income (loss) $ 59,603 $ 30,404 $ (102,244 ) $ (12,237 ) Impairment, restructuring, and COVID-19 related charges - - 14,611 14,611 Adjusted operating income (loss) $ 59,603 $ 30,404 $ (87,633 ) $ 2,374 Capital Expenditures $ 6,774 $ 8,620 $ 12,098 $ 27,492 26 weeks ended July 31, 2021 Total net revenue $ 1,573,584 $ 633,282 $ 21,903 $ 2,228,769 Operating income (loss) $ 350,128 $ 140,624 $ (189,328 ) $ 301,424 Capital Expenditures $ 30,628 $ 27,460 $ 28,117 $ 86,205 26 weeks ended August 1, 2020 Total net revenue $ 1,015,081 $ 406,492 $ 13,629 $ 1,435,202 Operating income (loss) $ (154,146 ) $ 11,275 $ (227,607 ) $ (370,478 ) Impairment, restructuring, and COVID-19 related charges 90,926 18,215 61,090 170,231 Adjusted operating income (loss) $ (63,220 ) $ 29,490 $ (166,517 ) $ (200,247 ) Capital Expenditures $ 14,873 $ 17,408 $ 29,121 $ 61,402 (1) Corporate includes revenue and operating results of the Todd Snyder and Unsubscribed brands, which are not material to disclose as separate reportable segments. Corporate operating costs represents certain costs that are not directly attributable to another reportable segment. (2) The difference between Operating income (loss) and Income (loss) before income taxes includes the following items, which are not allocated to our reportable segments: |
Summary of Geographical Information | The following table present summarized geographical information: 13 Weeks Ended 26 Weeks Ended (In thousands) July 31, 2021 August 1, 2020 July 31, 2021 August 1, 2020 Total net revenue: United States $ 1,030,308 $ 780,028 $ 1,939,966 $ 1,268,904 Foreign (1) 163,848 103,482 288,803 166,298 Total net revenue $ 1,194,156 $ 883,510 $ 2,228,769 $ 1,435,202 (1) Amounts represent sales from American Eagle and Aerie international retail stores, e-commerce sales that are billed and/or shipped to foreign countries and international license royalty revenue. |
Impairment, Restructuring and_2
Impairment, Restructuring and COVID-19 Related Charges (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Summary of Impairment, Restructuring and COVID-19 Related Charges | The following table represents impairment, restructuring and COVID-19 related charges for the 13 and 26 weeks ended August 1, 2020. There were no impairment, restructuring and COVID-19 related charges for the 13 and 26 weeks ended July 31, 2021. All amounts were recorded within impairment, restructuring and COVID-19 related charges on the Consolidated Statements of Operations. 13 Weeks Ended 26 Weeks Ended August 1, August 1, (In thousands) 2020 2020 Impairment charges (1) $ — $ 153,617 Incremental COVID-19 related expenses (2) 13,885 13,885 Severance and related employee costs 726 2,729 Total impairment, restructuring and COVID-19 related charges $ 14,611 $ 170,231 (1) During the 26 weeks ended August 1, 2020, the Company recorded asset impairment charges of $153.6 million. Included in this amount are retail store impairment charges of $109.6 million, of which $84.1 million relates to operating lease ROU assets and $25.5 million relates to store property and equipment (fixtures and equipment and leasehold improvements). We also recorded $26.0 million of impairment related charges to certain corporate property and equipment as well as $18.0 million of impairment charges related to certain cost and equity method investments. (2) Incremental COVID-19 related expenses consist of personal protective equipment and supplies for our associates and customers. |
Rollforward of Restructuring Liabilities Recognized in Accrued Compensation and Payroll Taxes and Other Current Liabilities and Accrued Expenses in Consolidated Balance Sheet | A roll-forward of restructuring liabilities recognized in accrued compensation and payroll taxes and other current liabilities and accrued expenses in the Consolidated Balance Sheet is as follows: 26 Weeks Ended July 31, (In thousands) 2021 Restructuring liability as of January 30, 2021 $ 2,812 Add: Costs incurred, excluding non-cash charges — Less: Cash payments and adjustments (1,857 ) Restructuring liability as of July 31, 2021 $ 955 |
Interim Financial Statements -
Interim Financial Statements - Additional Information (Detail) | Jul. 31, 2021Store |
Accounting Policies [Abstract] | |
Number of retail stores | 1,000 |
Number of international store locations | 200 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) shares in Thousands | Jan. 30, 2022shares | Apr. 30, 2020USD ($) | Jul. 31, 2021USD ($)Segmentshares | Jan. 30, 2021Segment | Aug. 01, 2020USD ($) | Jul. 31, 2021USD ($)Segmentshares | Aug. 01, 2020USD ($) | Jan. 30, 2021USD ($) |
Significant Accounting Policies [Line Items] | ||||||||
Number of reportable segments | Segment | 2 | 2 | 2 | |||||
Dilutive effect of convertible notes | shares | 36,367 | 35,083 | ||||||
Unrealized gain included in accumulated other comprehensive income | $ 916,000 | $ 7,059,000 | $ 3,854,000 | $ (14,823,000) | ||||
Weighted average remaining useful life, assets | 7 years | |||||||
Goodwill impairment charge | $ 0 | |||||||
Definite-lived impairment charges | 0 | 0 | $ 0 | 0 | ||||
Revenue related to gift card breakage | 2,000,000 | 1,600,000 | 4,400,000 | 3,300,000 | ||||
Impairment of operating lease ROU assets | $ 0 | $ 0 | $ 0 | $ 84,100,000 | ||||
Minimum | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Definite-lived intangibles, useful life | 15 years | |||||||
Maximum | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Definite-lived intangibles, useful life | 25 years | |||||||
Convertible Senior Notes Due 2025 | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Aggregate principal amount of debt issued | $ 415,000,000 | |||||||
Debt instrument, maturity year | 2025 | |||||||
Accounting Standards Update 2016-13 | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Change in accounting principle, accounting standards update, adopted | true | true | ||||||
Change in accounting principle, accounting standards update, adoption date | Feb. 2, 2020 | Feb. 2, 2020 | ||||||
Change in accounting principle, accounting standards update, immaterial effect | true | true | ||||||
Accounting Standards Update 2019-12 | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Change in accounting principle, accounting standards update, adopted | true | true | ||||||
Change in accounting principle, accounting standards update, adoption date | Jan. 31, 2021 | Jan. 31, 2021 | ||||||
Change in accounting principle, accounting standards update, immaterial effect | true | true | ||||||
ASU 2020-06 | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Dilutive effect of convertible notes | shares | 12,000 | |||||||
ASU 2020-06 | Forecast | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Dilutive effect of convertible notes | shares | 48,000 |
Useful Lives of Major Classes o
Useful Lives of Major Classes of Assets (Detail) | 6 Months Ended |
Jul. 31, 2021 | |
Buildings | |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | |
Useful lives in asset class | 25 years |
Leasehold Improvements | |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | |
Useful lives in asset class | Lesser of 10 years or the term of the lease |
Leasehold Improvements | Maximum | |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | |
Useful lives in asset class | 10 years |
Fixtures and Equipment | |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | |
Useful lives in asset class | 5 years |
Information Technology | Minimum | |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | |
Useful lives in asset class | 3 years |
Information Technology | Maximum | |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | |
Useful lives in asset class | 5 years |
Useful Lives of Major Classes_2
Useful Lives of Major Classes of Assets (Parenthetical) (Detail) | 6 Months Ended |
Jul. 31, 2021 | |
Maximum | Leasehold Improvements | |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | |
Useful lives in asset class | 10 years |
Fair Market Values for Cash and
Fair Market Values for Cash and Short-Term Investments (Detail) - USD ($) $ in Thousands | Jul. 31, 2021 | Jan. 30, 2021 | Aug. 01, 2020 |
Cash and cash equivalents: | |||
Cash and cash equivalents | $ 773,994 | $ 850,477 | $ 898,787 |
Short-term investments | |||
Short-term investments | 50,000 | ||
Total | 823,994 | 850,477 | 898,787 |
Cash | |||
Cash and cash equivalents: | |||
Cash and cash equivalents | 498,211 | 524,970 | 124,648 |
Money Market Securities | |||
Cash and cash equivalents: | |||
Cash and cash equivalents | 280,098 | ||
Interest Bearing Deposits | |||
Cash and cash equivalents: | |||
Cash and cash equivalents | 275,783 | 275,507 | $ 494,041 |
Certificates of Deposit | |||
Cash and cash equivalents: | |||
Cash and cash equivalents | $ 50,000 | ||
Short-term investments | |||
Short-term investments | $ 50,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | ||
Fair Value Measurements Disclosure [Line Items] | ||||||
Asset impairment charges | $ 0 | $ 0 | $ 0 | $ 153,617,000 | [1] | |
Impairment of operating lease ROU assets | 0 | 0 | 0 | 84,100,000 | ||
Retail Stores | ||||||
Fair Value Measurements Disclosure [Line Items] | ||||||
Asset impairment charges | 109,600,000 | |||||
Impairment of operating lease ROU assets | 84,100,000 | |||||
Impairment of certain cost and equity method investments | 18,000,000 | |||||
Fair value of impaired asset | 163,400,000 | 163,400,000 | ||||
Store Property and Equipment (Fixtures and Equipment and Leasehold Improvements) | Retail Stores | ||||||
Fair Value Measurements Disclosure [Line Items] | ||||||
Asset impairment charges | 25,500,000 | |||||
Corporate Property and Equipment | Retail Stores | ||||||
Fair Value Measurements Disclosure [Line Items] | ||||||
Asset impairment charges | 26,000,000 | |||||
Convertible Senior Notes Due 2025 | ||||||
Fair Value Measurements Disclosure [Line Items] | ||||||
Aggregate principal amount of debt issued | $ 415,000,000 | |||||
Debt instrument, maturity year | 2025 | |||||
Revolving Credit Facility | ||||||
Fair Value Measurements Disclosure [Line Items] | ||||||
Outstanding borrowings | $ 0 | $ 200,000,000 | $ 0 | $ 200,000,000 | ||
[1] | During the 26 weeks ended August 1, 2020, the Company recorded asset impairment charges of $153.6 million. Included in this amount are retail store impairment charges of $109.6 million, of which $84.1 million relates to operating lease ROU assets and $25.5 million relates to store property and equipment (fixtures and equipment and leasehold improvements). We also recorded $26.0 million of impairment related charges to certain corporate property and equipment as well as $18.0 million of impairment charges related to certain cost and equity method investments. |
Reconciliation Between Basic an
Reconciliation Between Basic and Diluted Weighted Average Shares Outstanding (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | ||
Weighted average common shares outstanding: | |||||
Basic number of common shares outstanding | 167,491 | 166,315 | 168,036 | 166,461 | |
Dilutive effect of convertible notes | 36,367 | 35,083 | |||
Dilutive effect of stock options and non-vested restricted stock | 5,075 | 5,281 | |||
Diluted number of common shares outstanding | 208,933 | 166,315 | 208,400 | 166,461 | |
Anti-Dilutive Shares | [1] | 130 | 8,235 | 130 | 4,670 |
[1] | For each of the 13 and 26 weeks ended August 1, 2020, there were 1.2 million potentially dilutive equity awards that were excluded from diluted earnings per share calculation because the Company incurred a net loss for this period and their inclusion would be anti-dilutive. For each of the 13 and 26 weeks ended August 1, 2020, there were 7.0 million and 3.5 million potentially dilutive shares from the Notes, respectively, that were excluded from the diluted earnings per share calculation because the Company incurred a net loss for this period and their inclusion would be anti-dilutive. |
Reconciliation Between Basic _2
Reconciliation Between Basic and Diluted Weighted Average Shares Outstanding (Parenthetical) (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||
Awards excluded from diluted earnings per share calculation | [1] | 130 | 8,235 | 130 | 4,670 |
Equity Awards | |||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||
Awards excluded from diluted earnings per share calculation | 1,200 | 1,200 | |||
Convertible Notes | |||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||
Awards excluded from diluted earnings per share calculation | 7,000 | 3,500 | |||
[1] | For each of the 13 and 26 weeks ended August 1, 2020, there were 1.2 million potentially dilutive equity awards that were excluded from diluted earnings per share calculation because the Company incurred a net loss for this period and their inclusion would be anti-dilutive. For each of the 13 and 26 weeks ended August 1, 2020, there were 7.0 million and 3.5 million potentially dilutive shares from the Notes, respectively, that were excluded from the diluted earnings per share calculation because the Company incurred a net loss for this period and their inclusion would be anti-dilutive. |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | Jul. 31, 2021 | Jan. 30, 2021 | Aug. 01, 2020 |
Property Plant And Equipment [Abstract] | |||
Property and equipment, at cost | $ 2,330,665 | $ 2,250,974 | $ 2,225,579 |
Less: Accumulated depreciation and impairment | (1,689,269) | (1,627,166) | (1,566,228) |
Property and equipment, net | $ 641,396 | $ 623,808 | $ 659,351 |
Intangible Assets, Including _3
Intangible Assets, Including Goodwill (Detail) - USD ($) $ in Thousands | Jul. 31, 2021 | Jan. 30, 2021 | Aug. 01, 2020 | |
Intangible Assets Net Including Goodwill [Abstract] | ||||
Goodwill, gross | $ 20,561 | $ 17,463 | $ 17,310 | |
Accumulated impairment | [1] | (4,196) | (4,196) | (4,196) |
Goodwill, net | 16,365 | 13,267 | 13,114 | |
Trademarks, at cost | 93,335 | 92,663 | 72,057 | |
Accumulated amortization | (39,080) | (35,598) | (33,739) | |
Trademarks, net | 54,255 | 57,065 | 38,318 | |
Intangible assets, net, including goodwill | $ 70,620 | $ 70,332 | $ 51,432 | |
[1] | Accumulated impairment includes $1.7 million recorded in Fiscal 2019 and $2.5 million recorded in Fiscal 2016. |
Intangible Assets, Including _4
Intangible Assets, Including Goodwill (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 01, 2020 | Jan. 28, 2017 | |
Intangible Assets Net Including Goodwill [Abstract] | ||
Accumulated impairment | $ 1.7 | $ 2.5 |
Long-Term Debt, Net - Component
Long-Term Debt, Net - Components of Long-Term Debt (Detail) - USD ($) | Jul. 31, 2021 | Jan. 30, 2021 | Aug. 01, 2020 |
Debt Instrument [Line Items] | |||
Total long-term debt, net | $ 331,680,000 | $ 325,290,000 | $ 516,953,000 |
Convertible Senior Notes- Equity portion, net of tax | 58,454,000 | 68,330,000 | 68,330,000 |
Convertible Senior Notes Due 2025 | |||
Debt Instrument [Line Items] | |||
Convertible senior notes principal | 412,025,000 | 415,025,000 | 415,025,000 |
Less: unamortized discount | 80,345,000 | 89,735,000 | 98,072,000 |
Convertible senior notes, net | 331,680,000 | $ 325,290,000 | 316,953,000 |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Revolving credit facility borrowings | $ 0 | $ 200,000,000 |
Long-Term Debt, Net - Additiona
Long-Term Debt, Net - Additional Information (Detail) | 1 Months Ended | 6 Months Ended | ||
Apr. 30, 2020USD ($)TradingDay$ / sharesshares | Jan. 31, 2019USD ($) | Jul. 31, 2021USD ($)$ / shares | Aug. 01, 2020USD ($) | |
Credit Agreement | Credit Facilities | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility, expiration period | 5 years | |||
Loans and letters of credit maximum borrowing capacity | $ 400,000,000 | |||
Line of credit facility, expiration date | Jan. 30, 2024 | |||
Credit Agreement | Credit Agreement Loans | ||||
Line Of Credit Facility [Line Items] | ||||
Outstanding borrowings | $ 0 | $ 200,000,000 | ||
Credit Agreement | Stand-by Letters of Credit | ||||
Line Of Credit Facility [Line Items] | ||||
Letters of credit outstanding amount | $ 7,900,000 | |||
Convertible Senior Notes Due 2025 | ||||
Line Of Credit Facility [Line Items] | ||||
Aggregate principal amount of debt issued | $ 415,000,000 | |||
Debt instrument, maturity year | 2025 | |||
Debt instrument, stated interest rate | 3.75% | |||
Debt instrument, interest terms | The Notes have a stated interest rate of 3.75%, payable semi-annually. | |||
Debt instrument, frequency of periodic payment of interest | payable semi-annually | |||
Debt instrument, redemption period beginning month and year | 2023-04 | |||
Debt instrument, redemption earliest date | Apr. 17, 2023 | |||
Debt instrument, redemption, scheduled trading day immediately preceding maturity date | TradingDay | 40 | |||
Debt instrument, redemption percentage of common stock price to conversion price | 130.00% | |||
Debt instrument, redemption, effect for trading days | TradingDay | 20 | |||
Debt instrument, redemption, consecutive trading day period | TradingDay | 30 | |||
Debt instrument, conversion period beginning month and year | 2025-01 | |||
Debt conversion, original debt, principal amount converted | $ 1,000 | |||
Debt instrument, conversion price per share | $ / shares | $ 8.60 | $ 8.60 | ||
Debt instrument, effective interest rate | 10.00% | |||
Debt instrument, remaining amortization period of discount | 3 years 9 months | |||
Convertible Senior Notes Due 2025 | Common Stock | ||||
Line Of Credit Facility [Line Items] | ||||
Debt conversion, converted instruments, shares issued | shares | 116.3 |
Long-Term Debt, Net - Schedule
Long-Term Debt, Net - Schedule of Interest Expense for Notes (Detail) - Convertible Senior Notes Due 2025 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Debt Instrument [Line Items] | ||||
Accrued interest for interest payments | $ 3,815 | $ 3,903 | $ 7,749 | $ 4,118 |
Amortization of discount | 4,956 | 3,982 | 9,384 | 4,195 |
Total interest expense | $ 8,771 | $ 7,885 | $ 17,133 | $ 8,313 |
Long-Term Debt, Net - Schedul_2
Long-Term Debt, Net - Schedule of Notes Conversion Amounts (Detail) - Convertible Senior Notes Due 2025 - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | |
Jul. 31, 2021 | Apr. 30, 2020 | |
Debt Instrument [Line Items] | ||
Number of shares convertible | 47,907 | |
Conversion price per share | $ 8.60 | $ 8.60 |
Value in excess of principal if converted | $ 1,272,776 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | $ 9,000,000 | $ 11,600,000 | $ 21,570,000 | $ 15,654,000 |
Share-based compensation, net of tax | $ 6,800,000 | $ 7,000,000 | 16,400,000 | 9,500,000 |
Net proceeds from stock options exercised | 13,065,000 | |||
Tax benefit realized from share-based payments | $ 4,100,000 | |||
Stock options exercised | $ 0 | |||
Shares available for all equity grants | 7.6 | 7.6 | ||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 8,600,000 | $ 8,600,000 | ||
Unrecognized compensation expense, weighted average period | 2 years 2 months 12 days | |||
Time Based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Unrecognized compensation expense, weighted average period | 2 years 2 months 12 days | |||
Unrecognized compensation expense, restricted stock grants | 36,000,000 | $ 36,000,000 | ||
Performance-Based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Unrecognized compensation expense, restricted stock grants | $ 10,900,000 | $ 10,900,000 | ||
Performance-Based Restricted Stock Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense, weighted average period | 1 year | |||
Performance-Based Restricted Stock Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense, weighted average period | 3 years |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | |
Jul. 31, 2021USD ($)$ / sharesshares | ||
Options | ||
Outstanding - beginning of period | shares | 3,940 | |
Granted | shares | 449 | |
Exercised | shares | (771) | [1] |
Outstanding - end of period | shares | 3,618 | |
Vested and expected to vest - end of period | shares | 2,778 | |
Exercisable - end of period | shares | 1,788 | [2] |
Weighted-Average Exercise Price | ||
Outstanding - beginning of period | $ / shares | $ 14.87 | |
Granted | $ / shares | 32.58 | |
Exercised | $ / shares | 16.33 | [1] |
Outstanding - end of period | $ / shares | 16.76 | |
Vested and expected to vest - end of period | $ / shares | 16.50 | |
Exercisable - end of period | $ / shares | $ 16.28 | [2] |
Weighted-Average Remaining Contractual Term (In years) | ||
Outstanding - end of period | 4 years 10 months 24 days | |
Vested and expected to vest - end of period | 3 years 6 months | |
Exercisable - end of period | 2 years | [2] |
Outstanding - end of period | $ | $ 64,071 | |
Vested and expected to vest - end of period | $ | 28,599 | |
Exercisable - end of period | $ | $ 32,531 | [2] |
[1] | Options exercised during the 26 weeks ended July 31, 2021 ranged in price from $8.62 to $21.41. | |
[2] | Options exercisable represent “in-the-money” vested options based upon the weighted-average exercise price of vested options compared to the Company’s stock price on July 31, 2021. |
Summary of Stock Option Activ_2
Summary of Stock Option Activity (Parenthetical) (Detail) | 6 Months Ended |
Jul. 31, 2021$ / shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Options exercised, exercise price range, lower limit | $ 8.62 |
Options exercised, exercise price range, upper limit | $ 21.41 |
Black-Scholes Option Valuation
Black-Scholes Option Valuation Assumptions (Detail) | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | [1] | 0.90% | |
Risk-free interest rates, minimum | [1] | 0.30% | |
Risk-free interest rates, maximum | [1] | 0.60% | |
Dividend yield | 1.60% | ||
Volatility factor | [2] | 50.70% | |
Volatility factor, minimum | [2] | 43.10% | |
Volatility factor, maximum | [2] | 48.70% | |
Weighted-average expected term | [3] | 4 years 6 months | 4 years 4 months 24 days |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 3.50% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 6.00% | ||
[1] | Based on the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected life of our stock options. | ||
[2] | Based on historical volatility of the Company’s common stock. | ||
[3] | Represents the period of time that options are expected to be outstanding. The weighted average expected option terms were determined based on historical experience. |
Summary of Restricted Stock Act
Summary of Restricted Stock Activity (Detail) shares in Thousands | 6 Months Ended |
Jul. 31, 2021$ / sharesshares | |
Time Based Restricted Stock Units | |
Shares | |
Nonvested - beginning of period | shares | 3,698 |
Granted | shares | 657 |
Vested | shares | (1,268) |
Cancelled | shares | (163) |
Nonvested - end of period | shares | 2,924 |
Weighted-Average Grant Date Fair Value | |
Nonvested - beginning of period | $ / shares | $ 12.42 |
Granted | $ / shares | 32.64 |
Vested | $ / shares | 13.45 |
Cancelled | $ / shares | 12.68 |
Nonvested - end of period | $ / shares | $ 16.30 |
Performance-Based Restricted Stock Units | |
Shares | |
Nonvested - beginning of period | shares | 1,868 |
Granted | shares | 320 |
Vested | shares | (275) |
Cancelled | shares | (308) |
Nonvested - end of period | shares | 1,605 |
Weighted-Average Grant Date Fair Value | |
Nonvested - beginning of period | $ / shares | $ 17.44 |
Granted | $ / shares | 39.93 |
Vested | $ / shares | 19.48 |
Cancelled | $ / shares | 16.88 |
Nonvested - end of period | $ / shares | $ 23.67 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 24.30% | 28.50% | 24.50% | 28.80% | |
U.S. federal corporate tax rate | 21.00% | 35.00% | |||
Reasonably possible amount of reduction in unrecognized tax benefit over the next twelve months | $ 0.6 | $ 0.6 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - Segment | 3 Months Ended | 6 Months Ended | |
Jul. 31, 2021 | Jan. 30, 2021 | Jul. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | 2 | ||
Number of reportable segments | 2 | 2 | 2 |
ASC 280 | |||
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 1 |
Segment Reporting - Reconcile S
Segment Reporting - Reconcile Segment Operating Performance Measure Operating Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | ||||
Segment Reporting Information [Line Items] | |||||||
Total net revenue | [1] | $ 1,194,156 | $ 883,510 | $ 2,228,769 | $ 1,435,202 | ||
Operating income (loss) | [1] | 167,996 | (12,237) | 301,424 | (370,478) | ||
Impairment, restructuring and COVID-19 related charges | 0 | 14,611 | [1] | 0 | 170,231 | [1] | |
Adjusted operating income (loss) | [1] | 2,374 | (200,247) | ||||
Capital Expenditures | [1] | 49,399 | 27,492 | 86,205 | 61,402 | ||
Operating Segments | American Eagle | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net revenue | 845,882 | 624,831 | 1,573,584 | 1,015,081 | |||
Operating income (loss) | 198,896 | 59,603 | 350,128 | (154,146) | |||
Impairment, restructuring and COVID-19 related charges | 90,926 | ||||||
Adjusted operating income (loss) | 59,603 | (63,220) | |||||
Capital Expenditures | 17,189 | 6,774 | 30,628 | 14,873 | |||
Operating Segments | Aerie | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net revenue | 335,795 | 251,511 | 633,282 | 406,492 | |||
Operating income (loss) | 70,646 | 30,404 | 140,624 | 11,275 | |||
Impairment, restructuring and COVID-19 related charges | 18,215 | ||||||
Adjusted operating income (loss) | 30,404 | 29,490 | |||||
Capital Expenditures | 16,641 | 8,620 | 27,460 | 17,408 | |||
Corporate, Non-Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net revenue | [2] | 12,479 | 7,168 | 21,903 | 13,629 | ||
Operating income (loss) | [2] | (101,546) | (102,244) | (189,328) | (227,607) | ||
Impairment, restructuring and COVID-19 related charges | [2] | 14,611 | 61,090 | ||||
Adjusted operating income (loss) | [2] | (87,633) | (166,517) | ||||
Capital Expenditures | [2] | $ 15,569 | $ 12,098 | $ 28,117 | $ 29,121 | ||
[1] | The difference between Operating income (loss) and Income (loss) before income taxes includes the following items, which are not allocated to our reportable segments: | ||||||
[2] | Corporate includes revenue and operating results of the Todd Snyder and Unsubscribed brands, which are not material to disclose as separate reportable segments. Corporate operating costs represents certain costs that are not directly attributable to another reportable segment. |
Segment Reporting - Reconcile_2
Segment Reporting - Reconcile Segment Operating Performance Measure Operating Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Segment Reporting [Abstract] | ||||
Interest expense, net | $ 8,900 | $ 8,500 | $ 17,400 | $ 8,700 |
Other (income) expense, net | $ (1,363) | $ (1,554) | $ (3,223) | $ 1,429 |
Segment Reporting - Summary of
Segment Reporting - Summary of Geographical Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | ||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Total net revenue | [1] | $ 1,194,156 | $ 883,510 | $ 2,228,769 | $ 1,435,202 |
United States | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Total net revenue | 1,030,308 | 780,028 | 1,939,966 | 1,268,904 | |
Foreign | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Total net revenue | [2] | $ 163,848 | $ 103,482 | $ 288,803 | $ 166,298 |
[1] | The difference between Operating income (loss) and Income (loss) before income taxes includes the following items, which are not allocated to our reportable segments: | ||||
[2] | Amounts represent sales from American Eagle and Aerie international retail stores, e-commerce sales that are billed and/or shipped to foreign countries and international license royalty revenue. |
Impairment, Restructuring and_3
Impairment, Restructuring and COVID-19 Related Charges - Addition Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |||
Restructuring And Related Activities [Abstract] | ||||||
Impairment, restructuring and COVID-19 related charges | $ 0 | $ 14,611 | [1] | $ 0 | $ 170,231 | [1] |
[1] | The difference between Operating income (loss) and Income (loss) before income taxes includes the following items, which are not allocated to our reportable segments: |
Summary of Impairment, Restruct
Summary of Impairment, Restructuring and COVID-19 Related Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | ||||
Restructuring And Related Activities [Abstract] | |||||||
Impairment charges | $ 0 | $ 0 | $ 0 | $ 153,617 | [1] | ||
Incremental COVID-19 related expenses | [2] | 13,885 | 13,885 | ||||
Severance and related employee costs | 726 | 2,729 | |||||
Total impairment, restructuring and COVID-19 related charges | $ 0 | $ 14,611 | [3] | $ 0 | $ 170,231 | [3] | |
[1] | During the 26 weeks ended August 1, 2020, the Company recorded asset impairment charges of $153.6 million. Included in this amount are retail store impairment charges of $109.6 million, of which $84.1 million relates to operating lease ROU assets and $25.5 million relates to store property and equipment (fixtures and equipment and leasehold improvements). We also recorded $26.0 million of impairment related charges to certain corporate property and equipment as well as $18.0 million of impairment charges related to certain cost and equity method investments. | ||||||
[2] | Incremental COVID-19 related expenses consist of personal protective equipment and supplies for our associates and customers. | ||||||
[3] | The difference between Operating income (loss) and Income (loss) before income taxes includes the following items, which are not allocated to our reportable segments: |
Summary of Impairment, Restru_2
Summary of Impairment, Restructuring and COVID-19 Related Charges (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | ||
Restructuring Cost And Reserve [Line Items] | |||||
Asset impairment charges | $ 0 | $ 0 | $ 0 | $ 153,617,000 | [1] |
Impairment of operating lease ROU assets | $ 0 | $ 0 | $ 0 | 84,100,000 | |
Retail Stores | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Asset impairment charges | 109,600,000 | ||||
Impairment of operating lease ROU assets | 84,100,000 | ||||
Store Property and Equipment (Fixtures and Equipment and Leasehold Improvements) | Retail Stores | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Asset impairment charges | 25,500,000 | ||||
Corporate Property and Equipment | Retail Stores | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Asset impairment charges | 26,000,000 | ||||
Cost and Equity Method Investments | Retail Stores | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Asset impairment charges | $ 18,000,000 | ||||
[1] | During the 26 weeks ended August 1, 2020, the Company recorded asset impairment charges of $153.6 million. Included in this amount are retail store impairment charges of $109.6 million, of which $84.1 million relates to operating lease ROU assets and $25.5 million relates to store property and equipment (fixtures and equipment and leasehold improvements). We also recorded $26.0 million of impairment related charges to certain corporate property and equipment as well as $18.0 million of impairment charges related to certain cost and equity method investments. |
Rollforward of Restructuring Li
Rollforward of Restructuring Liabilities Recognized in Accrued Compensation and Payroll Taxes and Other Current Liabilities and Accrued Expenses in Consolidated Balance Sheet (Detail) $ in Thousands | 6 Months Ended |
Jul. 31, 2021USD ($) | |
Restructuring And Related Activities [Abstract] | |
Restructuring liability as of January 30, 2021 | $ 2,812 |
Less: Cash payments and adjustments | (1,857) |
Restructuring liability as of July 31, 2021 | $ 955 |