Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Oct. 31, 2020 | Nov. 20, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | CHILDRENS PLACE, INC. | |
Entity Central Index Key | 0001041859 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --01-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 14,587,078 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Stock, $0.10 par value | |
Trading Symbol | PLCE | |
Security Exchange Name | NASDAQ | |
Entity File Number | 0-23071 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 31-1241495 | |
Entity Address, Address Line One | 500 Plaza Drive | |
Entity Address, City or Town | Secaucus | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07094 | |
City Area Code | 201 | |
Local Phone Number | 558-2400 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 31, 2020 | Feb. 01, 2020 | Nov. 02, 2019 |
Assets, Current [Abstract] | |||
Cash and Cash Equivalents, at Carrying Value | $ 64,456 | $ 68,487 | $ 66,059 |
Receivables, Net, Current | 31,376 | 32,812 | 39,471 |
Inventory, Net | 427,629 | 327,165 | 389,815 |
Prepaid Expense and Other Assets, Current | 16,159 | 21,416 | 20,722 |
Total current assets | 539,620 | 449,880 | 516,067 |
Assets, Noncurrent [Abstract] | |||
Property, Plant and Equipment, Net | 191,544 | 236,898 | 246,234 |
Operating Lease, Right-of-Use Asset | 297,206 | 393,820 | 418,151 |
Intangible Assets, Net (Excluding Goodwill) | 72,692 | 73,291 | 73,386 |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 93,697 | 12,941 | 17,615 |
Other Assets, Noncurrent | 12,184 | 14,567 | 14,269 |
Assets | 1,206,943 | 1,181,397 | 1,285,722 |
Liabilities, Current [Abstract] | |||
Short-term Debt | 179,360 | 170,808 | 184,179 |
Long-term Debt and Lease Obligation, Current | 1,328 | 0 | 0 |
Accounts Payable, Current | 283,943 | 213,115 | 235,491 |
Operating Lease, Liability, Current | 171,276 | 121,868 | 124,281 |
Accrued Income Taxes, Current | 7,445 | 5,607 | 7,171 |
Accrued Liabilities, Current | 133,407 | 83,609 | 109,476 |
Total current liabilities | 776,759 | 595,007 | 660,598 |
Liabilities, Noncurrent [Abstract] | |||
Long-term Debt | 76,307 | 0 | 0 |
Operating Lease, Liability, Noncurrent | 232,153 | 311,908 | 331,615 |
Liability for Uncertainty in Income Taxes, Noncurrent | 6,821 | 6,782 | 5,050 |
Accrued Income Taxes, Noncurrent | 17,589 | 17,589 | 18,939 |
Other Liabilities, Noncurrent | 19,945 | 14,924 | 15,081 |
Total liabilities | 1,129,574 | 946,210 | 1,031,283 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Preferred stock, $1.00 par value, 1,000 shares authorized, 0 shares issued and outstanding | 0 | 0 | 0 |
Common stock, $0.10 par value, 100,000 shares authorized; 14,641, 14,762, and 15,310 issued; 14,586, 14,711, and 15,260 outstanding | 1,464 | 1,476 | 1,531 |
Additional Paid in Capital, Common Stock | 141,613 | 139,041 | 145,219 |
Treasury stock, at cost (55, 51, and 50 shares) | (3,095) | (2,956) | (2,886) |
Common Stock Issued, Employee Trust, Deferred | 3,095 | 2,956 | 2,886 |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (15,170) | (13,545) | (13,442) |
Retained Earnings (Accumulated Deficit) | (50,538) | 108,215 | 121,131 |
Total stockholders’ equity | 77,369 | 235,187 | 254,439 |
Total liabilities and stockholders’ equity | $ 1,206,943 | $ 1,181,397 | $ 1,285,722 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | 9 Months Ended | ||
Oct. 31, 2020 | Feb. 01, 2020 | Nov. 02, 2019 | |
Document Period End Date | Oct. 31, 2020 | ||
Common Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 14,641,000 | 14,762,000 | 15,310,000 |
Common Stock, Shares, Outstanding | 14,586,000 | 14,711,000 | 15,260,000 |
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 | $ 1 |
Preferred Stock, Shares Authorized | 1,000 | 1,000 | 1,000 |
Preferred Stock, Shares Issued | 0 | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 | 0 |
Treasury Stock, Shares | 55,000 | 51,000 | 50,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Revenues | $ 425,571 | $ 524,796 | $ 1,049,701 | $ 1,357,647 |
Cost of Goods and Services Sold | 279,506 | 326,671 | 856,229 | 868,701 |
Gross Profit | 146,065 | 198,125 | 193,472 | 488,946 |
Selling, General and Administrative Expense | 106,639 | 120,514 | 319,442 | 364,937 |
Impairment of Long-Lived Assets Held-for-use | 294 | 839 | 37,929 | 1,308 |
Depreciation, Depletion and Amortization, Nonproduction | 15,809 | 18,821 | 50,405 | 55,877 |
Operating Income (Loss) | 23,323 | 57,951 | (214,304) | 66,824 |
Interest Expense | (3,266) | (2,221) | (7,802) | (6,341) |
Interest Income, Other | 3 | 66 | 60 | 197 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest, Total | 20,060 | 55,796 | (222,046) | 60,680 |
Income Tax Expense (Benefit) | 6,740 | 12,748 | (73,917) | 11,620 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 13,320 | $ 43,048 | $ (148,129) | $ 49,060 |
Earnings Per Share, Basic [Abstract] | ||||
Earnings Per Share, Basic | $ 0.91 | $ 2.78 | $ (10.13) | $ 3.12 |
Weighted Average Number of Shares Outstanding, Basic | 14,639 | 15,497 | 14,628 | 15,720 |
Earnings Per Share, Diluted [Abstract] | ||||
Earnings Per Share, Diluted | $ 0.91 | $ 2.77 | $ (10.13) | $ 3.10 |
Weighted Average Number of Shares Outstanding, Diluted | 14,643 | 15,546 | 14,628 | 15,837 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0 | $ 0.56 | $ 0 | $ 1.68 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 13,320 | $ 43,048 | $ (148,129) | $ 49,060 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 216 | 1,773 | (876) | 1,376 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (949) | 30 | (749) | 116 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 12,587 | $ 44,851 | $ (149,754) | $ 50,552 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2020 | Nov. 02, 2019 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (148,129) | $ 49,060 |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||
Depreciation, Depletion and Amortization, Nonproduction | 50,405 | 55,877 |
Share-based Payment Arrangement, Noncash Expense | 7,388 | 13,622 |
Deferred Income Tax Expense (Benefit) | (80,778) | 745 |
Other Noncash Expense | 399 | 175 |
Increase (Decrease) in Operating Capital [Abstract] | ||
Increase (Decrease) in Inventories | (100,346) | (86,440) |
Increase (Decrease) in Prepaid Expense and Other Assets | 2,522 | (3,027) |
Increase (Decrease) in Income Taxes Payable | 1,667 | 10,888 |
Increase (Decrease) in Accounts Payable | 120,784 | 63,641 |
Increase (Decrease) in Deferred and Other Liabilities | (31,271) | (120,221) |
Net Cash Provided by (Used in) Operating Activities, Total | (50,731) | 100,566 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | ||
Payments to Acquire Productive Assets | (23,763) | (42,396) |
Payments for (Proceeds from) Life Insurance Policies | 211 | 222 |
Net Cash Provided by (Used in) Investing Activities, Total | (23,552) | (119,125) |
Net Cash Provided by (Used in) Financing Activities [Abstract] | ||
Payments for Repurchase of Common Stocks | (15,452) | (93,763) |
Payments of Ordinary Dividends, Common Stock | 0 | (26,480) |
Proceeds from Lines of Credit | 356,316 | 750,981 |
Repayments of Lines of Credit | (347,764) | (615,663) |
Proceeds from Loans | 78,750 | |
Payments of Debt Issuance Costs | (1,164) | |
Net Cash Provided by (Used in) Financing Activities, Total | 70,686 | 15,075 |
Effect of Exchange Rate on Cash and Cash Equivalents | (434) | 407 |
Cash and Cash Equivalents, Period Increase (Decrease), Total | (4,031) | (3,077) |
Cash and Cash Equivalents, at Carrying Value | 68,487 | 69,136 |
Cash and Cash Equivalents, at Carrying Value | 64,456 | 66,059 |
Supplemental Cash Flow Information [Abstract] | ||
Income Taxes Paid, Net | 4,975 | 74 |
Interest Paid, Excluding Capitalized Interest, Operating Activities | (6,177) | (6,233) |
Payments for (Proceeds from) Productive Assets | $ (2,162) | $ 797 |
COMPREHENSIVE INCOME (LOSS) (De
COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 13,320 | $ 43,048 | $ (148,129) | $ 49,060 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 216 | 1,773 | (876) | 1,376 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 12,587 | $ 44,851 | $ (149,754) | $ 50,552 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | BASIS OF PRESENTATION Description of Business The Children’s Place, Inc. and subsidiaries (the “Company”, or “we”) is the largest pure-play children’s specialty apparel retailer in North America. The Company provides apparel, footwear, accessories, and other items for children. The Company designs, contracts to manufacture, sells at retail and wholesale, and licenses to sell trend right, high-quality merchandise predominately at value prices, primarily under our proprietary “The Children’s Place”, “Place”, “Baby Place”, and “Gymboree” brand names. The Company classifies its business into two segments: The Children’s Place U.S. and The Children’s Place International. Included in The Children’s Place U.S. segment are the Company’s U.S. and Puerto Rico-based stores and revenue from its U.S.-based wholesale business. Included in The Children’s Place International segment are its Canadian-based stores, revenue from the Company’s Canada wholesale business, as well as revenue from international franchisees. Each segment includes an e-commerce business located at www.childrensplace.com and www.gymboree.com . Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated financial position of the Company as of October 31, 2020 and November 2, 2019, the results of its consolidated operations for the thirteen and thirty-nine weeks ended October 31, 2020 and November 2, 2019, consolidated cash flows for the thirty-nine weeks ended October 31, 2020 and November 2, 2019 and consolidated stockholders’ equity for the thirteen and thirty-nine weeks ended October 31, 2020 and November 2, 2019. The consolidated financial position as of February 1, 2020 was derived from audited financial statements. Due to the seasonal nature of the Company’s business, the results of operations for the thirty-nine weeks ended October 31, 2020 and November 2, 2019 are not necessarily indicative of operating results for a full fiscal year. These consolidated financial statements should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 1, 2020. In December 2019, there was an outbreak of a new strain of coronavirus (“COVID-19”) that began in Wuhan, China and has since spread to the other regions of the world. In March 2020, the World Health Organization declared COVID-19 a global pandemic, and the President of the United States declared a national emergency. Federal, state, and local governments and health officials mandated and continue to mandate various restrictions, including closures of businesses and other activities, travel restrictions, restrictions on public gatherings, stay at home orders and advisories, quarantining of people who may have been exposed to the virus, and the adoption of remote or hybrid learning models for schools. The COVID-19 pandemic has significantly negatively affected the global economy, significantly disrupted global supply chains, and created significant disruption of the financial and retail markets, including a significant disruption in consumer demand for children’s clothing and accessories. As such, the comparability of the Company’s operating results has been affected by significant adverse impacts related to the COVID-19 pandemic. Terms that are commonly used in the Company’s notes to consolidated financial statements are defined as follows: • Third Quarter 2020 — The thirteen weeks ended October 31, 2020 • Third Quarter 2019 — The thirteen weeks ended November 2, 2019 • Year-To-Date 2020 — The thirty-nine weeks ended October 31, 2020 • Year-To-Date 2019 — The thirty-nine weeks ended November 2, 2019 • FASB — Financial Accounting Standards Board • SEC — U.S. Securities and Exchange Commission • U.S. GAAP — Generally Accepted Accounting Principles in the United States • FASB ASC — FASB Accounting Standards Codification, which serves as the source for authoritative U.S. GAAP, except that rules and interpretive releases by the SEC are also sources of authoritative U.S. GAAP for SEC registrants Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. FASB ASC 810-- Consolidation is considered when determining whether an entity is subject to consolidation. Fiscal Year The Company’s fiscal year is a 52-week or 53-week period ending on the Saturday on or nearest to January 31. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and amounts of revenues and expenses reported during the period. Actual results could differ from the assumptions used and estimates made by management, which could have a material impact on the Company’s financial position or results of operations. Significant estimates inherent in the preparation of the consolidated financial statements include: reserves for the realizability of inventory; reserves for litigation and other contingencies; useful lives and impairments of long-lived assets; fair value measurements; accounting for income taxes and related uncertain tax positions; insurance reserves; valuation of stock-based compensation awards and related estimated forfeiture rates, among others. Reclassifications Certain reclassifications have been made to prior period financial statements to conform to the current period presentation. Inventories Inventories, which consist primarily of finished goods, are stated at the lower of cost or net realizable value, with cost determined on an average cost basis. The Company capitalizes certain supply chain costs in inventory, and these costs are reflected within cost of sales as the inventories are sold. Inventory shrinkage is estimated in interim periods based upon the historical results of physical inventory counts in the context of current year facts and circumstances. Impairment of Long-Lived Assets The Company periodically reviews its long-lived assets when events indicate that their carrying value may not be recoverable. Such events include historical trends or projected trends of cash flow losses or a future expectation that the Company will sell or dispose of an asset significantly before the end of its previously estimated useful life. In reviewing for impairment, the Company groups its long-lived assets at the lowest possible level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The Company reviews all stores that have reached comparable sales status, or sooner if circumstances should dictate, on at least an annual basis. The Company believes waiting this period of time allows a store to reach a maturity level where a more comprehensive analysis of financial performance can be performed. For each store that shows indications of impairment, the Company projects future cash flows over the remaining life of the lease, adjusted for lease payments, and compares the total undiscounted cash flows to the net book value of the related long-lived assets, including right-of-use (“ROU”) assets. If the undiscounted cash flows are less than the related net book value of the long-lived assets, they are written down to their fair market value. The Company primarily uses discounted future cash flows directly associated with those assets to determine fair market value of long-lived assets and ROU assets. In evaluating future cash flows, the Company considers external and internal factors. External factors comprise the local environment in which the store resides, including mall traffic and competition and their effect on sales trends, as well as macroeconomic factors, such as global pandemics. Internal factors include the Company’s ability to gauge the fashion taste of its customers, control variable costs such as cost of sales and payroll and, in certain cases, its ability to renegotiate lease costs. Asset impairment charges during Year-To-Date 2020 were related to underperforming stores identified in our ongoing store portfolio evaluation primarily as a result of decreased net revenues and cash flow projections resulting from the COVID-19 pandemic. Stock-based Compensation The Company generally grants time vesting stock awards (“Deferred Awards”) and performance-based stock awards (“Performance Awards”) to employees at management levels. The Company also grants Deferred Awards to its non-employee directors. Deferred Awards are granted in the form of a defined number of restricted stock units that require each recipient to complete a service period. Deferred Awards generally vest ratably over three years, except for those granted to non-employee directors, which generally vest after one year. Performance Awards are granted in the form of restricted stock units which have performance criteria that must be achieved for the awards to vest (the “Target Shares”) in addition to a service period requirement. For Performance Awards, an employee may earn from 0% to 250% of their Target Shares based on the Company’s achievement of certain performance goals established at the beginning of the applicable performance period. The Performance Awards cliff vest, if earned, after completion of the applicable performance period, which is generally three years. The fair value of these Performance Awards granted is based on the closing price of our common stock on the grant date. Stock-based compensation expense is recognized ratably over the related service period reduced for estimated forfeitures of those awards not expected to vest due to employee turnover. Stock-based compensation expense, as it relates to Performance Awards, is also adjusted based on the probability that the performance criteria will be achieved. Deferred Compensation Plan The Company has a deferred compensation plan (the “Deferred Compensation Plan”), which is a nonqualified plan, for eligible senior level employees. Under the plan, participants may elect to defer up to 80% of his or her base salary and/or up to 100% of his or her bonus to be earned for the year following the year in which the deferral election is made. The Deferred Compensation Plan also permits members of the Board of Directors to elect to defer payment of all or a portion of their retainer and other fees to be earned for the year following the year in which a deferral election is made. In addition, eligible employees and directors of the Company may also elect to defer payment of any shares of Company stock that is earned with respect to stock-based awards. Directors may elect to have all or a certain portion of their fees earned for their service on the Board invested in shares of the Company’s common stock. Such elections are irrevocable. The Company is not required to contribute to the Deferred Compensation Plan, but at its sole discretion, can make additional contributions on behalf of the participants. Deferred amounts are not subject to forfeiture and are deemed invested among investment funds offered under the Deferred Compensation Plan, as directed by each participant. Payments of deferred amounts (as adjusted for earnings and losses) are payable following separation from service or at a date or dates elected by the participant at the time the deferral is elected. Payments of deferred amounts are generally made in either a lump sum or in annual installments over a period not exceeding 15 years. All deferred amounts are payable in the form in which they were made, except for board fees invested in shares of the Company’s common stock, which will be settled in shares of Company common stock. Earlier distributions are not permitted except in the case of an unforeseen hardship. The Company has established a rabbi trust that serves as an investment to shadow the Deferred Compensation Plan liability. The assets of the rabbi trust are general assets of the Company and, as such, would be subject to the claims of creditors in the event of bankruptcy or insolvency. Investments of the rabbi trust consist of mutual funds and Company common stock. The Deferred Compensation Plan liability, excluding Company common stock, is included within other long-term liabilities and changes in the balance, except those relating to payments, are recognized as compensation expense within selling, general, and administrative expenses. The value of the mutual funds is included in other assets and related earnings and losses are recognized as investment income or loss, which is included within selling, general, and administrative expenses. Company stock deferrals are included within the equity section of the Company’s consolidated balance sheet as treasury stock and as a deferred compensation liability. Deferred stock is recorded at fair market value at the time of deferral, and any subsequent changes in fair market value are not recognized. Fair Value Measurement and Financial Instruments FASB ASC 820-- Fair Value Measurement provides a single definition of fair value, together with a framework for measuring it, and requires additional disclosure about the use of fair value to measure assets and liabilities. This topic defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a three-level hierarchy, which encourages an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the hierarchy are defined as follows: • Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities • Level 2 - inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly • Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities Our cash and cash equivalents, accounts receivable, assets of the Company’s Deferred Compensation Plan, accounts payable, and revolving loan are all short-term in nature. As such, their carrying amounts approximate fair value and fall within Level 1 of the fair value hierarchy. The Company stock included in the Deferred Compensation Plan is not subject to fair value measurement. Our derivative assets and liabilities include foreign exchange forward contracts that are measured at fair value using observable market inputs such as forward rates, our credit risk, and our counterparties’ credit risks. Based on these inputs, our derivative assets and liabilities are classified within Level 2 of the fair value hierarchy. Our assets measured at fair value on a nonrecurring basis include long-lived assets, such as intangible assets, fixed assets, and ROU assets. We review the carrying amounts of such assets when events indicate that their carrying amounts may not be recoverable. Any resulting asset impairment would require that the asset be recorded at its fair value. The resulting fair value measurements of the assets are considered to fall within Level 3 of the fair value hierarchy. |
REVENUES (Notes)
REVENUES (Notes) | 9 Months Ended |
Oct. 31, 2020 | |
Revenues [Abstract] | |
Revenue from Contract with Customer [Text Block] | 2. REVENUES Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The following table presents our revenues disaggregated by geography: Thirteen Weeks Ended Thirty-nine Weeks Ended October 31, November 2, October 31, November 2, Net sales: (in thousands) South $ 151,374 $ 176,091 $ 395,655 $ 475,801 Northeast 97,668 129,325 232,435 319,468 West 50,896 77,213 143,472 206,344 Midwest 61,740 69,957 139,243 173,912 International and other 63,893 72,210 138,896 182,122 Total net sales $ 425,571 $ 524,796 $ 1,049,701 $ 1,357,647 The Company recognizes revenue, including shipping and handling fees billed to customers, upon purchase at the Company’s retail stores or when received by the customer if the product was purchased via e-commerce, net of coupon redemptions and anticipated sales returns. The Company deferred approximately $7.4 million and $2.5 million as of October 31, 2020 and November 2, 2019, respectively, based upon estimated time of delivery, at which point control passes to the customer, and is recorded in accrued expenses and other current liabilities. Sales tax collected from customers is excluded from revenue. For the sale of goods with a right of return, the Company recognizes revenue for the consideration it expects to be entitled to and calculates an allowance for estimated sales returns based upon the Company’s sales return experience. Adjustments to the allowance for estimated sales returns in subsequent periods are generally not material based on historical data, thereby reducing the uncertainty inherent in such estimates. The allowance for estimated sales returns, which is recorded in accrued expenses and other current liabilities, was approximately $1.7 million and $2.3 million as of October 31, 2020 and November 2, 2019, respectively. Our private label credit card is issued to our customers for use exclusively at The Children’s Place stores and online at www.childrensplace.com and www.gymboree.com , and credit is extended to such customers by a third-party financial institution on a non-recourse basis to us. The private label credit card includes multiple performance obligations for the Company, including marketing and promoting the program on behalf of the bank and the operation of the loyalty rewards program. Included in the agreement with the third-party financial institution was an upfront bonus paid to the Company. The upfront bonus is recognized as revenue and allocated between brand and reward obligations. As the license of the Company’s brand is the predominant item in the performance obligation, the amount allocated to the brand obligation is recognized on a straight-line basis over the initial term. The amount allocated to the reward obligation is recognized on a point-in-time basis as redemptions under the loyalty program occur. In measuring revenue and determining the consideration the Company is entitled to as part of a contract with a customer, the Company takes into account the related elements of variable consideration, such as additional bonuses, including profit-sharing, over the life of the program. Similar to the upfront bonus, the usage-based royalties and bonuses are recognized as revenue and allocated between the brand and reward obligations. The amount allocated to the brand obligation is recognized on a straight-line basis over the initial term. The amount allocated to the reward obligation is recognized on a point-in-time basis as redemptions under the loyalty program occur. In addition, the annual profit-sharing amount is estimated and recognized quarterly within an annual period when earned. The additional bonuses are amortized over the contract term based on anticipated progress against future targets and level of risk associated with achieving the targets. The Company has a points-based customer loyalty program, in which customers earn points based on purchases and other promotional activities. These points can be redeemed for coupons to discount future purchases. A contract liability is estimated based on the standalone selling price of benefits earned by customers through the program and the related redemption experience under the program. The value of each point earned is recorded as deferred revenue and is included within accrued expenses and other current liabilities. The total contract liabilities related to this program were $2.5 million and $2.9 million as of October 31, 2020 and November 2, 2019, respectively. The Company’s policy with respect to gift cards is to record revenue as and when the gift cards are redeemed for merchandise. The Company recognizes gift card breakage income in proportion to the pattern of rights exercised by the customer when the Company expects to be entitled to breakage and the Company determines that it does not have a legal obligation to remit the value of the unredeemed gift card to the relevant jurisdiction as unclaimed or abandoned property and is recorded within net sales. Prior to their redemption, gift cards are recorded as a liability, included within accrued expenses and other current liabilities. The total contract liability related to gift cards issued was $12.6 million and $14.7 million as of October 31, 2020 and November 2, 2019, respectively. The liability is estimated based on expected breakage that considers historical patterns of redemption. The following table provides the reconciliation of the contract liability related to gift cards: Contract Liability (in thousands) Balance at February 1, 2020 $ 16,100 Gift cards sold 11,452 Gift cards redeemed (12,740) Gift card breakage (2,231) Balance at October 31, 2020 $ 12,581 |
LEASES (Notes)
LEASES (Notes) | 9 Months Ended |
Oct. 31, 2020 | |
Lessee, Operating Leases [Text Block] | LEASES We have operating leases for retail stores, corporate offices, distribution facilities, and certain equipment. Our leases have remaining lease terms of less than 1 year up to 10 years, some of which may include options to extend the leases for up to five years, and some of which may include options to terminate the lease early. The lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. For operating leases, the ROU asset is initially and subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, less any accrued lease payments and unamortized lease incentives. For finance leases, the ROU asset is initially measured at cost and subsequently amortized using the straight-line method generally from the lease commencement date to the earlier of the end of its useful life or the end of the lease term. The discount rate is the rate implicit in the lease unless that rate cannot be readily determined. In that case, the Company is required to use its incremental borrowing rate. The discount rate for a lease is determined based on the information available at lease commencement. In general, the Company accounts for the underlying leased asset and applies a discount rate at the lease level. However, there are certain non-real estate leases for which the Company utilizes the portfolio method by aggregating similar leased assets based on the underlying lease term. The Company has made an accounting policy election by class of underlying asset to not apply the recognition requirements of FASB ASC 842-- Leases (“Topic 842”) to leases with an initial term of 12 months or less. Leases with an initial lease term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components. The Company has elected a policy to account for lease and non-lease components as a single component for all asset classes. In certain leases, the Company has the right to exercise lease renewal options. Renewal option periods are included in the measurement of lease ROU assets and lease liabilities where the exercise is reasonably certain to occur. As of October 31, 2020, the Company’s finance leases were not material to the consolidated balance sheets, consolidated statements of operations, or consolidated statements of cash flows. We have certain lease agreements structured with both a fixed base rent and a contingent rent based on a percentage of sales over contractual levels, others with only contingent rent based on a percentage of sales, and some with a fixed base rent adjusted periodically for inflation or changes in fair market value of the underlying real estate. Contingent rent is recognized as sales occur. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We record all occupancy costs in cost of sales, except administrative office buildings, which are recorded in selling, general, and administrative expenses. The following components of lease expense are included in the Company’s consolidated statements of operations. Thirteen Weeks Ended Thirty-nine Weeks Ended October 31, 2020 November 2, 2019 October 31, 2020 November 2, 2019 (in thousands) Operating lease cost $ 29,218 $ 36,348 $ 108,412 $ 112,316 Variable lease cost (1) 16,871 16,754 36,696 47,520 Total lease cost $ 46,089 $ 53,102 $ 145,108 $ 159,836 ( 1) Includes short term leases with lease periods of less than 12 months. As of October 31, 2020, the weighted-average remaining operating lease term was 4.0 years, and the weighted-average discount rate for operating leases was 5.0%. Cash paid for amounts included in the measurement of operating lease liabilities during Year-To-Date 2020 was approximately $92.9 million. ROU assets obtained in exchange for new operating lease liabilities were approximately $41.4 million during Year-To-Date 2020. As of October 31, 2020, the stated future minimum annual lease payments under operating lease agreements were as follows: As of October 31, 2020 (in thousands) Remainder of 2020 $ 96,913 2021 114,785 2022 82,512 2023 45,951 2024 27,754 Thereafter 70,010 Total lease payments $ 437,925 Less: imputed interest $ (34,496) Present value of lease liabilities $ 403,429 |
INTANGIBLE ASSETS (Notes)
INTANGIBLE ASSETS (Notes) | 9 Months Ended |
Oct. 31, 2020 | |
Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | 4. INTANGIBLE ASSETS The Company acquired certain intellectual property and related assets (the “Gymboree Assets”) of Gymboree Group, Inc. and related entities, which included the worldwide rights to the names “Gymboree” and “Crazy 8” and other intellectual property, including trademarks, domain names, copyrights, and customer databases. These intangible assets, inclusive of acquisition costs, are recorded in the long-term assets section of the consolidated balance sheets. The Company’s intangible assets include both indefinite and finite assets. Intangible assets with indefinite lives consist primarily of trademarks and acquired trade names, which are tested for impairment annually or whenever circumstances indicate that a decline in value may have occurred. The Company estimates the fair value of these intangible assets based on an income approach using the relief-from-royalty method. The Company’s finite-lived intangible assets consist primarily of customer lists and other acquisition-related assets. Finite-lived intangible assets are amortized over their estimated useful economic lives and are reviewed for impairment when factors indicate that an impairment may have occurred. The Company recognizes an impairment charge when the estimated fair value of the intangible asset is less than the carrying value. The Company’s intangible assets were as follows as of October 31, 2020: October 31, 2020 Useful life Gross amount Accumulated amortization Net amount (in thousands) Gymboree tradename (1) Indefinite $ 69,953 $ — $ 69,953 Crazy 8 tradename (1) 5 years 4,000 (1,261) 2,739 Customer databases (2) 3 years 3,000 (1,577) 1,423 Total intangibles, net $ 76,953 $ (2,838) $ 74,115 (1) Included within Tradenames, net in the consolidated balance sheets. (2) Included within Other assets in the consolidated balance sheets. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Oct. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | STOCKHOLDERS’ EQUITY Share Repurchase Program In March 2018, the Board of Directors authorized a $250 million share repurchase program (the “2018 Share Repurchase Program”). At October 31, 2020, there was approximately $92.9 million remaining on the 2018 Share Repurchase Program. Under this program, the Company may repurchase shares on the open market at current market prices at the time of purchase or in privately negotiated transactions. The timing and actual number of shares repurchased under a program will depend on a variety of factors including price, corporate and regulatory requirements, and other market and business conditions. The Company may suspend or discontinue the program at any time and may thereafter reinstitute purchases, all without prior announcement. In March 2020, the Company temporarily suspended share repurchases due to the COVID-19 pandemic. Pursuant to the Company’s practice, including due to restrictions imposed by the Company’s insider trading policy during black-out periods, the Company withholds and repurchases shares of vesting stock awards and makes payments to taxing authorities as required by law to satisfy the withholding tax requirements of all equity award recipients. The Company’s payment of the withholding taxes in exchange for the surrendered shares constitutes a purchase of its common stock. The Company also acquires shares of its common stock in conjunction with liabilities owed under the Company’s Deferred Compensation Plan, which are held in treasury. The following table summarizes the Company’s share repurchases: Thirty-nine Weeks Ended October 31, 2020 November 2, 2019 Shares Value Shares Value (in thousands) Shares repurchases related to: 2018 Share Repurchase Program 292 $ 15,452 1,028 $ 93,763 Shares acquired and held in treasury under Deferred Compensation Plan 4.3 $ 139 2.1 $ 201 In accordance with the FASB ASC 505-- Equity , the par value of the shares retired is charged against common stock and the remaining purchase price is allocated between additional paid-in capital and retained earnings. The portion charged against additional paid-in capital is determined using a pro-rata allocation based on total shares outstanding. Related to all shares retired during Year-To-Date 2020 and Year-To-Date 2019, approximately $10.6 million and $79.7 million, respectively, were charged to retained earnings. Dividends In March 2020, the Company announced it had temporarily suspended its dividend payments due to the COVID-19 pandemic. During Year-To-Date 2019, $27.4 million was charged to retained earnings, of which $26.5 million related to cash dividends paid and $0.9 million related to dividend share equivalents on unvested Deferred Awards and Performance Awards. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Company’s Board of Directors based on a number of factors, including business and market conditions, the Company’s financial performance, and other investment priorities. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Oct. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | STOCK-BASED COMPENSATION The following table summarizes the Company’s stock-based compensation expense: Thirteen Weeks Ended Thirty-nine Weeks Ended October 31, November 2, October 31, November 2, (in thousands) Deferred Awards $ 2,775 $ 4,494 $ 10,282 $ 14,237 Performance Awards 500 (2,143) (2,894) (615) Total stock-based compensation expense (1) $ 3,275 $ 2,351 $ 7,388 $ 13,622 ____________________________________________ (1) During the Third Quarter 2020 and the Third Quarter 2019, approximately $0.9 million and $0.9 million, respectively, were included within cost of sales. During Year-To-Date 2020 and Year-To-Date 2019, approximately $2.6 million and $2.8 million, respectively, were included within cost of sales (exclusive of depreciation and amortization). All other stock-based compensation is included in selling, general, and administrative expenses. The Company recognized a tax benefit related to stock-based compensation expense of approximately $2.0 million and $3.6 million during Year-To-Date 2020 and Year-To-Date 2019, respectively. Changes in the Company’s Unvested Stock Awards during Year-To-Date 2020 Deferred Awards Number of Weighted (in thousands) Unvested Deferred Awards, beginning of period 377 $ 97.88 Granted 410 41.73 Vested (165) 107.11 Forfeited (73) 80.75 Unvested Deferred Awards, end of period 549 $ 55.47 Total unrecognized stock-based compensation expense related to unvested Deferred Awards approximated $20.4 million as of October 31, 2020, which will be recognized over a weighted average period of approximately 2.1 years. Performance Awards Number of Shares (1) Weighted (in thousands) Unvested Performance Awards, beginning of period 342 $ 99.97 Granted 144 41.64 Shares unearned (below target) (101) 118.00 Vested shares (3) 105.86 Forfeited (29) 106.69 Unvested Performance Awards, end of period 353 $ 70.37 ____________________________________________ (1) For those awards in which the performance period is complete, the number of unvested shares is based on actual shares that will vest upon completion of the service period. For those awards in which the performance period is not yet complete, the number of unvested shares in the table above is based on the participants earning their Target Shares at 100%. However, the cumulative expense recognized reflects changes in the probability that the performance criteria will be achieved as they occur. Total unrecognized stock-based compensation expense related to unvested Performance Awards approximated $5.2 million as of October 31, 2020, which will be recognized over a weighted average period of approximately 2.6 years. |
NET INCOME (LOSS) PER COMMON SH
NET INCOME (LOSS) PER COMMON SHARE | 9 Months Ended |
Oct. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | PER COMMON SHARE The following table reconciles net income (loss) and share amounts utilized to calculate basic and diluted earnings (loss) per common share: Thirteen Weeks Ended Thirty-nine Weeks Ended October 31, 2020 November 2, 2019 October 31, 2020 November 2, 2019 (in thousands) Net income (loss) $ 13,320 $ 43,048 $ (148,129) $ 49,060 Basic weighted average common shares 14,639 15,497 14,628 15,720 Dilutive effect of stock awards 4 49 — 117 Diluted weighted average common shares 14,643 15,546 14,628 15,837 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Oct. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | PROPERTY AND EQUIPMENT Property and equipment, net consist of the following: October 31, 2020 February 1, 2020 November 2, 2019 (in thousands) Property and equipment: Land and land improvements $ 3,403 $ 3,403 $ 3,403 Building and improvements 35,927 35,568 35,568 Material handling equipment 56,926 53,540 52,506 Leasehold improvements 226,881 285,955 299,897 Store fixtures and equipment 234,423 272,158 271,476 Capitalized software 295,277 265,610 264,574 Construction in progress 12,701 33,240 34,287 865,538 949,474 961,711 Accumulated depreciation and amortization (673,994) (712,576) (715,477) Property and equipment, net $ 191,544 $ 236,898 $ 246,234 At October 31, 2020, the Company performed impairment testing on 809 stores with a total net book value of approximately $44.0 million. During the Third Quarter 2020, the Company recorded asset impairment charges of $0.3 million, inclusive of ROU assets, primarily for one store. During Year-To-Date 2020, the Company recorded asset impairment charges of $37.9 million, inclusive of ROU assets, primarily for 419 stores. These charges were related to underperforming stores identified in our ongoing store portfolio evaluation primarily as a result of decreased net revenues and cash flow projections resulting from the COVID-19 pandemic. At November 2, 2019, the Company performed impairment testing on 955 stores with a total net book value of approximately $70.1 million. During the Third Quarter 2019, the Company recorded asset impairment charges of $0.8 million primarily for eight stores. During Year-To-Date 2019, the Company recorded asset impairment charges of $1.3 million primarily for 15 stores. |
LEGAL AND REGULATORY MATTERS
LEGAL AND REGULATORY MATTERS | 9 Months Ended |
Oct. 31, 2020 | |
LEGAL AND REGULATORY MATTERS [Abstract] | |
Legal Matters and Contingencies [Text Block] | LEGAL AND REGULATORY MATTERS The Company is a defendant in Rael v. The Children’s Place, Inc. , a purported class action, pending in the U.S. District Court, Southern District of California. In the initial complaint filed in February 2016, the plaintiff alleged that the Company falsely advertised discount prices in violation of California’s Unfair Competition Law, False Advertising Law, and Consumer Legal Remedies Act. The plaintiff filed an amended complaint in April 2016, adding allegations of violations of other state consumer protection laws. In August 2016, the plaintiff filed a second amended complaint, adding an additional plaintiff and removing the other state law claims. The plaintiffs’ second amended complaint seeks to represent a class of California purchasers and seeks, among other items, injunctive relief, damages, and attorneys’ fees and costs. The Company engaged in mediation proceedings with the plaintiffs and signed a definitive settlement agreement in November 2017, to settle the matter on a class basis with all individuals in the U.S. who made a qualifying purchase at The Children’s Place from February 11, 2012 through the date of preliminary approval by the court of the settlement. The settlement provides for merchandise vouchers for class members who submit valid claims, as well as payment of legal fees and expenses and claims administration expenses. On January 28, 2020, the court entered an order granting preliminary approval of the settlemen t . The settlement is subject to the court’s final approval and, if approved, will result in the settlement of all claims through the date of the court’s preliminary approval of the settlement. However, if the settlement is ultimately rejected by the court, the parties will likely return to litigation, and in such event, no assurance can be given as to the ultimate outcome of this matter. In connection with the proposed settlement, the Company recorded a reserve for $5.0 million in its consolidated financial statements in the first quarter of 2017. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The Company computes income taxes using the liability method. This method requires recognition of deferred tax assets and liabilities, measured by enacted rates, attributable to temporary differences between the financial statement and income tax basis of assets and liabilities. The Company’s deferred tax assets and liabilities are comprised largely of differences relating to depreciation, rent expense, inventory, stock-based compensation, and various accruals and reserves. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act, (“CARES Act”) was signed into law. The CARES Act includes changes that may benefit the Company such as a five-year net operating loss carryback, changes in the deductibility of interest expense, and accelerated depreciation on certain store leasehold improvements. The CARES Act also allows for the deferral of employer FICA taxes and an employee retention credit. The Company’s effective tax rate for the Third Quarter 2020 was 33.6% as compared 22.8% during the Third Quarter 2019, resulting in income tax expense of $6.7 million during the Third Quarter 2020 compared to an expense of $12.7 million during the Third Quarter 2019. The increase in the effective tax rate for the Third Quarter 2020 compared to the Third Quarter 2019 was primarily driven by the impact of the CARES Act on the current quarter rate and the jurisdictional mix of income in the periods. The Company’s effective tax rate for the Year-To-Date 2020 was a benefit of 33.3% compared to an expense of 19.1% during the Year-To-Date 2019. The Year-To-Date 2020 benefit was primarily driven by the net loss in the period as well as the impact of the enactment of the CARES Act. The Year-To-Date 2019 income tax rate was impacted by an excess tax benefit related to the vesting of equity shares. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. The total amount of unrecognized tax benefits as of October 31, 2020, February 1, 2020, and November 2, 2019 were $6.8 million, $6.8 million, and $5.1 million, respectively, and is included within non-current liabilities. The Company recognized additional interest expense related to unrecognized tax benefits of less than $0.1 million in each of the Third Quarter 2020 and the Third Quarter 2019, respectively. During each of Year-To-Date 2020 and Year-To-Date 2019, the Company recognized less than $0.1 million of additional interest expense. The Company is subject to tax in the United States and foreign jurisdictions, including Canada and Hong Kong. The Company, joined by its domestic subsidiaries, files a consolidated income tax return for federal income tax purposes. The Company is no longer subject to income tax examinations by U.S. federal, state and local, or foreign tax authorities for fiscal tax years 2014 and prior, with the exception of Hong Kong, which is open through fiscal tax year 2013 due to an ongoing tax examination. Management believes that an adequate provision has been made for any adjustments that may result from tax examinations; however, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. |
DERIVATIVE INSTRUMENTS (Notes)
DERIVATIVE INSTRUMENTS (Notes) | 9 Months Ended |
Oct. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | DERIVATIVE INSTRUMENTS The Company is exposed to gains and losses resulting from fluctuations in foreign currency exchange rates attributable to inventory purchases denominated in a foreign currency. Specifically, our Canadian subsidiary’s functional currency is the Canadian dollar but purchases inventory from suppliers in U.S. dollars. In order to mitigate the variability of cash flows associated with certain of these forecasted inventory purchases, we enter, from time-to-time, into foreign exchange forward contracts. These contracts typically mature within 12 months. We do not use forward contracts to engage in currency speculation, and we do not enter into derivative financial instruments for trading purposes. The Company accounts for all of its derivatives and hedging activity under FASB ASC 815-- Derivatives and Hedging . Under the Company’s risk management policy and in accordance with guidance under the topic, in order to qualify for hedge accounting treatment, a derivative must be considered highly effective at offsetting changes in either the hedged item’s cash flows or fair value. Additionally, the hedge relationship must be documented to include the risk management objective and strategy, the hedging instrument, the hedged item, the risk exposure, and how hedge effectiveness will be assessed prospectively and retrospectively. The Company formally measures effectiveness of its hedging relationships both at the hedge inception and on an ongoing basis. The Company would discontinue hedge accounting under a foreign exchange forward contract prospectively: (i) if management determines that the derivative is no longer highly effective in offsetting changes in the cash flows of a hedged item, (ii) when the derivative expires or is terminated, (iii) if the forecasted transaction being hedged by the derivative is no longer probable of occurring, or (iv) if management determines that designation of the derivative as a hedge instrument is no longer appropriate. All derivative instruments are presented at gross fair value on the consolidated balance sheets within either prepaid expenses and other current assets or accrued expenses and other current liabilities. As of October 31, 2020, the Company did not have any open foreign exchange forward contracts. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | SEGMENT INFORMATION In accordance with FASB ASC 280-- Segment Reporting , the Company reports segment data based on geography: The Children’s Place U.S. and The Children’s Place International. Each segment includes an e-commerce business located at www.childrensplace.com and www.gymboree.com . Included in The Children’s Place U.S. segment are the Company’s U.S. and Puerto Rico-based stores and revenue from the Company’s U.S.-based wholesale business. Included in The Children’s Place International segment are the Company’s Canadian-based stores, revenue from the Company’s Canadian-based wholesale business, and revenue from international franchisees. The Company measures its segment profitability based on operating income, defined as income before interest and taxes. Net sales and direct costs are recorded by each segment. Certain inventory procurement functions such as production and design as well as corporate overhead, including executive management, finance, real estate, human resources, legal, and information technology services are managed by The Children’s Place U.S. segment. Expenses related to these functions, including depreciation and amortization, are allocated to The Children’s Place International segment based primarily on net sales. The assets related to these functions are not allocated. The Company periodically reviews these allocations and adjusts them based upon changes in business circumstances. Net sales to external customers are derived from merchandise sales, and the Company has no major customers that account for more than 10% of its net sales. As of October 31, 2020, The Children’s Place U.S. had 702 stores and The Children’s Place International had 107 stores. As of November 2, 2019, The Children’s Place U.S. had 834 stores and The Children’s Place International had 121 stores. The following tables provide segment level financial information: Thirteen Weeks Ended Thirty-nine Weeks Ended October 31, November 2, October 31, November 2, (in thousands) Net sales (1) : The Children’s Place U.S. $ 373,625 $ 467,834 $ 941,607 $ 1,217,215 The Children’s Place International (2) 51,946 56,962 108,094 140,432 Total net sales $ 425,571 $ 524,796 $ 1,049,701 $ 1,357,647 Operating income (loss) (1) : The Children’s Place U.S. $ 17,491 $ 48,129 $ (204,468) $ 55,722 The Children’s Place International 5,832 9,822 (9,836) 11,102 Total operating income (loss) $ 23,323 $ 57,951 $ (214,304) $ 66,824 Operating income (loss) as a percent of net sales (1) : The Children’s Place U.S. 4.7 % 10.3 % (21.7 %) 4.6 % The Children’s Place International 11.2 % 17.2 % (9.1 %) 7.9 % Total operating income (loss) as a percent of net sales 5.5 % 11.0 % (20.4 %) 4.9 % Depreciation and amortization: The Children’s Place U.S. $ 14,542 $ 16,971 $ 46,322 $ 50,301 The Children’s Place International 1,267 1,850 4,083 5,576 Total depreciation and amortization $ 15,809 $ 18,821 $ 50,405 $ 55,877 Capital expenditures: The Children’s Place U.S. $ 9,413 $ 20,326 $ 23,046 $ 41,741 The Children’s Place International 82 230 717 655 Total capital expenditures $ 9,495 $ 20,556 $ 23,763 $ 42,396 ___________________________________________ (1) Net sales and operating income (loss) were significantly impacted by the COVID-19 pandemic. (2) Net sales from The Children’s Place International are primarily derived from revenues from Canadian operations. October 31, 2020 February 1, 2020 November 2, 2019 Total assets: (in thousands) The Children’s Place U.S. $ 1,113,309 $ 1,080,665 $ 1,179,493 The Children’s Place International 93,634 100,732 106,229 Total assets $ 1,206,943 $ 1,181,397 $ 1,285,722 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Nov. 02, 2019 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. FASB ASC 810-- Consolidation is considered when determining whether an entity is subject to consolidation. |
Fiscal Period, Policy [Policy Text Block] | Fiscal YearThe Company’s fiscal year is a 52-week or 53-week period ending on the Saturday on or nearest to January 31. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and amounts of revenues and expenses reported during the period. Actual results could differ from the assumptions used and estimates made by management, which could have a material impact on the Company’s financial position or results of operations. Significant estimates inherent in the preparation of the consolidated financial statements include: reserves for the realizability of inventory; reserves for litigation and other contingencies; useful lives and impairments of long-lived assets; fair value measurements; accounting for income taxes and related uncertain tax positions; insurance reserves; valuation of stock-based compensation awards and related estimated forfeiture rates, among others. |
Inventory, Policy [Policy Text Block] | Inventories Inventories, which consist primarily of finished goods, are stated at the lower of cost or net realizable value, with cost determined on an average cost basis. The Company capitalizes certain supply chain costs in inventory, and these costs are reflected within cost of sales as the inventories are sold. Inventory shrinkage is estimated in interim periods based upon the historical results of physical inventory counts in the context of current year facts and circumstances. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets The Company periodically reviews its long-lived assets when events indicate that their carrying value may not be recoverable. Such events include historical trends or projected trends of cash flow losses or a future expectation that the Company will sell or dispose of an asset significantly before the end of its previously estimated useful life. In reviewing for impairment, the Company groups its long-lived assets at the lowest possible level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The Company reviews all stores that have reached comparable sales status, or sooner if circumstances should dictate, on at least an annual basis. The Company believes waiting this period of time allows a store to reach a maturity level where a more comprehensive analysis of financial performance can be performed. For each store that shows indications of impairment, the Company projects future cash flows over the remaining life of the lease, adjusted for lease payments, and compares the total undiscounted cash flows to the net book value of the related long-lived assets, including right-of-use (“ROU”) assets. If the undiscounted cash flows are less than the related net book value of the long-lived assets, they are written down to their fair market value. The Company primarily uses discounted future cash flows directly associated with those assets to determine fair market value of long-lived assets and ROU assets. In evaluating future cash flows, the Company considers external and internal factors. External factors comprise the local environment in which the store resides, including mall traffic and competition and their effect on sales trends, as well as macroeconomic factors, such as global pandemics. Internal factors include the Company’s ability to gauge the fashion taste of its customers, control variable costs such as cost of sales and payroll and, in certain cases, its ability to renegotiate lease costs. Asset impairment charges during Year-To-Date 2020 were related to underperforming stores identified in our ongoing store portfolio evaluation primarily as a result of decreased net revenues and cash flow projections resulting from the COVID-19 pandemic. |
Share-based Payment Arrangement [Policy Text Block] | Stock-based Compensation The Company generally grants time vesting stock awards (“Deferred Awards”) and performance-based stock awards (“Performance Awards”) to employees at management levels. The Company also grants Deferred Awards to its non-employee directors. Deferred Awards are granted in the form of a defined number of restricted stock units that require each recipient to complete a service period. Deferred Awards generally vest ratably over three years, except for those granted to non-employee directors, which generally vest after one year. Performance Awards are granted in the form of restricted stock units which have performance criteria that must be achieved for the awards to vest (the “Target Shares”) in addition to a service period requirement. For Performance Awards, an employee may earn from 0% to 250% of their Target Shares based on the Company’s achievement of certain performance goals established at the beginning of the applicable performance period. The Performance Awards cliff vest, if earned, after completion of the applicable performance period, which is generally three years. The fair value of these Performance Awards granted is based on the closing price of our common stock on the grant date. Stock-based compensation expense is recognized ratably over the related service period reduced for estimated forfeitures of those awards not expected to vest due to employee turnover. Stock-based compensation expense, as it relates to Performance Awards, is also adjusted based on the probability that the performance criteria will be achieved. |
Deferred Compensation Arrangements Policy Text Block | Deferred Compensation Plan The Company has a deferred compensation plan (the “Deferred Compensation Plan”), which is a nonqualified plan, for eligible senior level employees. Under the plan, participants may elect to defer up to 80% of his or her base salary and/or up to 100% of his or her bonus to be earned for the year following the year in which the deferral election is made. The Deferred Compensation Plan also permits members of the Board of Directors to elect to defer payment of all or a portion of their retainer and other fees to be earned for the year following the year in which a deferral election is made. In addition, eligible employees and directors of the Company may also elect to defer payment of any shares of Company stock that is earned with respect to stock-based awards. Directors may elect to have all or a certain portion of their fees earned for their service on the Board invested in shares of the Company’s common stock. Such elections are irrevocable. The Company is not required to contribute to the Deferred Compensation Plan, but at its sole discretion, can make additional contributions on behalf of the participants. Deferred amounts are not subject to forfeiture and are deemed invested among investment funds offered under the Deferred Compensation Plan, as directed by each participant. Payments of deferred amounts (as adjusted for earnings and losses) are payable following separation from service or at a date or dates elected by the participant at the time the deferral is elected. Payments of deferred amounts are generally made in either a lump sum or in annual installments over a period not exceeding 15 years. All deferred amounts are payable in the form in which they were made, except for board fees invested in shares of the Company’s common stock, which will be settled in shares of Company common stock. Earlier distributions are not permitted except in the case of an unforeseen hardship. The Company has established a rabbi trust that serves as an investment to shadow the Deferred Compensation Plan liability. The assets of the rabbi trust are general assets of the Company and, as such, would be subject to the claims of creditors in the event of bankruptcy or insolvency. Investments of the rabbi trust consist of mutual funds and Company common stock. The Deferred Compensation Plan liability, excluding Company common stock, is included within other long-term liabilities and changes in the balance, except those relating to payments, are recognized as compensation expense within selling, general, and administrative expenses. The value of the mutual funds is included in other assets and related earnings and losses are recognized as investment income or loss, which is included within selling, general, and administrative expenses. Company stock deferrals are included within the equity section of the Company’s consolidated balance sheet as treasury stock and as a deferred compensation liability. Deferred stock is recorded at fair market value at the time of deferral, and any subsequent changes in fair market value are not recognized. |
REVENUES (Tables)
REVENUES (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Disaggregation of Revenue [Table Text Block] | The following table presents our revenues disaggregated by geography: Thirteen Weeks Ended Thirty-nine Weeks Ended October 31, November 2, October 31, November 2, Net sales: (in thousands) South $ 151,374 $ 176,091 $ 395,655 $ 475,801 Northeast 97,668 129,325 232,435 319,468 West 50,896 77,213 143,472 206,344 Midwest 61,740 69,957 139,243 173,912 International and other 63,893 72,210 138,896 182,122 Total net sales $ 425,571 $ 524,796 $ 1,049,701 $ 1,357,647 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | The following table provides the reconciliation of the contract liability related to gift cards: Contract Liability (in thousands) Balance at February 1, 2020 $ 16,100 Gift cards sold 11,452 Gift cards redeemed (12,740) Gift card breakage (2,231) Balance at October 31, 2020 $ 12,581 |
STOCKHOLDERS' EQUITY Share Repu
STOCKHOLDERS' EQUITY Share Repurchase (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Schedule of Repurchase Agreements [Table Text Block] | The following table summarizes the Company’s share repurchases: Thirty-nine Weeks Ended October 31, 2020 November 2, 2019 Shares Value Shares Value (in thousands) Shares repurchases related to: 2018 Share Repurchase Program 292 $ 15,452 1,028 $ 93,763 Shares acquired and held in treasury under Deferred Compensation Plan 4.3 $ 139 2.1 $ 201 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Cost by Plan [Table Text Block] | Thirteen Weeks Ended Thirty-nine Weeks Ended October 31, November 2, October 31, November 2, (in thousands) Deferred Awards $ 2,775 $ 4,494 $ 10,282 $ 14,237 Performance Awards 500 (2,143) (2,894) (615) Total stock-based compensation expense (1) $ 3,275 $ 2,351 $ 7,388 $ 13,622 |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | Number of Weighted (in thousands) Unvested Deferred Awards, beginning of period 377 $ 97.88 Granted 410 41.73 Vested (165) 107.11 Forfeited (73) 80.75 Unvested Deferred Awards, end of period 549 $ 55.47 |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | Number of Shares (1) Weighted (in thousands) Unvested Performance Awards, beginning of period 342 $ 99.97 Granted 144 41.64 Shares unearned (below target) (101) 118.00 Vested shares (3) 105.86 Forfeited (29) 106.69 Unvested Performance Awards, end of period 353 $ 70.37 |
NET INCOME (LOSS) PER COMMON _2
NET INCOME (LOSS) PER COMMON SHARE (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Thirteen Weeks Ended Thirty-nine Weeks Ended October 31, 2020 November 2, 2019 October 31, 2020 November 2, 2019 (in thousands) Net income (loss) $ 13,320 $ 43,048 $ (148,129) $ 49,060 Basic weighted average common shares 14,639 15,497 14,628 15,720 Dilutive effect of stock awards 4 49 — 117 Diluted weighted average common shares 14,643 15,546 14,628 15,837 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | October 31, 2020 February 1, 2020 November 2, 2019 (in thousands) Property and equipment: Land and land improvements $ 3,403 $ 3,403 $ 3,403 Building and improvements 35,927 35,568 35,568 Material handling equipment 56,926 53,540 52,506 Leasehold improvements 226,881 285,955 299,897 Store fixtures and equipment 234,423 272,158 271,476 Capitalized software 295,277 265,610 264,574 Construction in progress 12,701 33,240 34,287 865,538 949,474 961,711 Accumulated depreciation and amortization (673,994) (712,576) (715,477) Property and equipment, net $ 191,544 $ 236,898 $ 246,234 |
CREDIT FACILITY (Tables)
CREDIT FACILITY (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities [Table Text Block] | October 31, February 1, November 2, (in millions) Credit facility maximum $ 360.0 $ 325.0 $ 325.0 Borrowing base 360.0 282.1 325.0 Outstanding borrowings 179.4 170.8 184.2 Letters of credit outstanding—standby 7.8 6.2 6.2 Utilization of credit facility at end of period 187.2 177.0 190.4 Availability (1) $ 172.8 $ 105.1 $ 134.6 Interest rate at end of period 3.9 % 3.4 % 3.3 % Year-To-Date 2020 Fiscal Year-To-Date 2019 Average end of day loan balance during the period $ 233.2 $ 192.0 $ 192.1 Highest end of day loan balance during the period 275.6 262.5 262.5 Average interest rate 3.7 % 4.0 % 4.1 % ____________________________________________ (1) The sublimit availability for the letters of credit was $42.2 million at October 31, 2020 and $43.8 million at February 1, 2020 and November 2, 2019. |
Schedule of Maturities of Long-term Debt | Period Future Principal Payments (in thousands) Remainder of 2020 $ — 2021 3,000 2022 5,500 2023 7,500 2024 64,000 Total future principal payments $ 80,000 |
Schedule of Long-term Debt Instruments [Table] | October 31, (in thousands) Term Loan principal $ 80,000 Less: Unamortized discount, net (1,224) Less: Unamortized debt issuance costs, net (1,141) Term Loan, net 77,635 Less: Current portion, net (1,328) Long-term debt, net $ 76,307 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Thirteen Weeks Ended Thirty-nine Weeks Ended October 31, November 2, October 31, November 2, (in thousands) Net sales (1) : The Children’s Place U.S. $ 373,625 $ 467,834 $ 941,607 $ 1,217,215 The Children’s Place International (2) 51,946 56,962 108,094 140,432 Total net sales $ 425,571 $ 524,796 $ 1,049,701 $ 1,357,647 Operating income (loss) (1) : The Children’s Place U.S. $ 17,491 $ 48,129 $ (204,468) $ 55,722 The Children’s Place International 5,832 9,822 (9,836) 11,102 Total operating income (loss) $ 23,323 $ 57,951 $ (214,304) $ 66,824 Operating income (loss) as a percent of net sales (1) : The Children’s Place U.S. 4.7 % 10.3 % (21.7 %) 4.6 % The Children’s Place International 11.2 % 17.2 % (9.1 %) 7.9 % Total operating income (loss) as a percent of net sales 5.5 % 11.0 % (20.4 %) 4.9 % Depreciation and amortization: The Children’s Place U.S. $ 14,542 $ 16,971 $ 46,322 $ 50,301 The Children’s Place International 1,267 1,850 4,083 5,576 Total depreciation and amortization $ 15,809 $ 18,821 $ 50,405 $ 55,877 Capital expenditures: The Children’s Place U.S. $ 9,413 $ 20,326 $ 23,046 $ 41,741 The Children’s Place International 82 230 717 655 Total capital expenditures $ 9,495 $ 20,556 $ 23,763 $ 42,396 ___________________________________________ (1) Net sales and operating income (loss) were significantly impacted by the COVID-19 pandemic. (2) Net sales from The Children’s Place International are primarily derived from revenues from Canadian operations. October 31, 2020 February 1, 2020 November 2, 2019 Total assets: (in thousands) The Children’s Place U.S. $ 1,113,309 $ 1,080,665 $ 1,179,493 The Children’s Place International 93,634 100,732 106,229 Total assets $ 1,206,943 $ 1,181,397 $ 1,285,722 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Nov. 02, 2019 | Nov. 03, 2018 | Oct. 31, 2020 | Feb. 01, 2020 | |
Accounting Policies [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | 3 years | ||
Deferred Compensation Arrangements [Abstract] | ||||
Deferred Compensation Arrangements Maximum Percentage of Base Salary | 80.00% | |||
Deferred Compensation Arrangements Maximum Percentage of Bonus | 100.00% | |||
Common Stock Issued, Employee Trust, Deferred | $ (2,886) | $ (3,095) | $ (2,956) |
REVENUES (Details)
REVENUES (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Nov. 02, 2019 |
Deferred Revenue, Current | $ 7.4 | $ 2.5 |
Deferred Revenue | 1.7 | 2.3 |
Gift Card Liability, Current | $ 12.6 | $ 14.7 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | Feb. 01, 2020 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Payment, Tax Withholding, Share-based Payment Arrangement | $ 15,452 | $ 93,763 | |||
Share-based Payment Arrangement, Expense | $ 3,275 | $ 2,351 | $ 7,388 | $ 13,622 | |
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 292,000 | 1,028,000 | |||
Treasury Stock, Shares, Acquired | 4,300 | 2,100 | |||
Treasury Stock, Value, Acquired, Cost Method | $ 139 | $ 201 | |||
Treasury Stock, Shares | 55,000 | 50,000 | 55,000 | 50,000 | 51,000 |
Treasury Stock, Value | $ 3,095 | $ 2,886 | $ 3,095 | $ 2,886 | $ 2,956 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0 | $ 0.56 | $ 0 | $ 1.68 | |
2015 $250M Share Repurchase Program [Member] [Domain] [Domain] [Domain] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 92,900 | $ 92,900 | |||
Retained Earnings [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchased and Retired During Period, Value | 10,600 | $ 79,700 | |||
Dividends | 27,400 | ||||
Dividends, Common Stock, Cash | 26,500 | ||||
Dividend sun vested shares | 900 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Share-based Payment Arrangement, Expense | 2,775 | $ 4,494 | 10,282 | 14,237 | |
Performance Awards Member | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Share-based Payment Arrangement, Expense | $ 500 | $ (2,143) | $ (2,894) | $ (615) |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | Nov. 03, 2018 | Feb. 01, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | 3 years | ||||
Share-based Payment Arrangement, Expense | $ 3,275 | $ 2,351 | $ 7,388 | $ 13,622 | ||
Share-based Payment Arrangement, Expense, Tax Benefit | 2,000 | 3,600 | ||||
Cost of Sales [Member] | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Share-based Payment Arrangement, Expense | 900 | 900 | $ 2,600 | 2,800 | ||
Performance Awards Member | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 29 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 5,200 | $ 5,200 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 353 | 353 | 342 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 70.37 | $ 70.37 | $ 99.97 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 106.69 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 144 | |||||
Share-based Payment Arrangement, Expense | $ 500 | $ (2,143) | $ (2,894) | $ (615) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 41.64 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 3 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 105.86 | |||||
Deferred and Restricted Stock (Deferred Awards) Member | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 73 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 20,400 | $ 20,400 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 549 | 549 | 377 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 55.47 | $ 55.47 | $ 97.88 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 80.75 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 1 month 6 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 410 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 41.73 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 165 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 107.11 |
STOCK-BASED COMPENSATION (Det_2
STOCK-BASED COMPENSATION (Details 2) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | Nov. 03, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Payment Arrangement, Expense | $ 3,275 | $ 2,351 | $ 7,388 | $ 13,622 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | 3 years | |||
Cost of Sales [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Payment Arrangement, Expense | 900 | 900 | 2,600 | $ 2,800 | |
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Payment Arrangement, Expense | 2,775 | 4,494 | 10,282 | 14,237 | |
Performance Awards Member | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Payment Arrangement, Expense | $ 500 | $ (2,143) | $ (2,894) | $ (615) | |
Share-based Compensation Arrangement By Share-based Payment Award Percentage Of Target Shares Which Can Be Earned | 100.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 342 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 144 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (3) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (29) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 353 | 353 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 99.97 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 41.64 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 105.86 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | 106.69 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 70.37 | $ 70.37 | |||
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 5,200 | $ 5,200 |
NET INCOME (LOSS) PER COMMON _3
NET INCOME (LOSS) PER COMMON SHARE (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 13,320 | $ 43,048 | $ (148,129) | $ 49,060 |
Weighted Average Number of Shares Outstanding, Basic | 14,639 | 15,497 | 14,628 | 15,720 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 4 | 49 | 0 | 117 |
Weighted Average Number of Shares Outstanding, Diluted | 14,643 | 15,546 | 14,628 | 15,837 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2020USD ($) | Nov. 02, 2019USD ($) | Oct. 31, 2020USD ($) | Nov. 02, 2019USD ($) | Feb. 01, 2020USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Net book value | $ 44,000,000 | $ 70,100,000 | $ 44,000,000 | $ 70,100,000 | |
Impairment of Long-Lived Assets Held-for-use | $ 294,000 | 839,000 | 37,929,000 | 1,308,000 | |
Number of Underperforming Stores | 1 | ||||
Property, Plant and Equipment, Gross | $ 865,538,000 | 961,711,000 | 865,538,000 | 961,711,000 | $ 949,474,000 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (673,994,000) | (715,477,000) | (673,994,000) | (715,477,000) | (712,576,000) |
Property, Plant and Equipment, Net | 191,544,000 | 246,234,000 | 191,544,000 | 246,234,000 | 236,898,000 |
Land and Land Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 3,403,000 | 3,403,000 | 3,403,000 | 3,403,000 | 3,403,000 |
Building and Building Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 35,927,000 | 35,568,000 | 35,927,000 | 35,568,000 | 35,568,000 |
Material handling equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 56,926,000 | 52,506,000 | 56,926,000 | 52,506,000 | 53,540,000 |
Leasehold Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 226,881,000 | 299,897,000 | 226,881,000 | 299,897,000 | 285,955,000 |
Store fixtures and equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 234,423,000 | 271,476,000 | 234,423,000 | 271,476,000 | 272,158,000 |
Computer Software, Intangible Asset [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 295,277,000 | 264,574,000 | 295,277,000 | 264,574,000 | 265,610,000 |
Construction in Progress [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 12,701,000 | $ 34,287,000 | $ 12,701,000 | $ 34,287,000 | $ 33,240,000 |
Number Of Stores Tested For Impairment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of Stores | 809 | 955 | 809 | 955 |
CREDIT FACILITY (Details)
CREDIT FACILITY (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Oct. 31, 2020 | Nov. 02, 2019 | Feb. 01, 2020 | |
Line of Credit Facility [Line Items] | |||
Sublimit Availability | $ 42,200,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 360,000,000 | $ 325,000,000 | $ 325,000,000 |
Line of Credit Facility, Current Borrowing Capacity | 360,000,000 | 325,000,000 | 282,100,000 |
Line of Credit Facility Amount Outstanding Other | 179,400,000 | 184,200,000 | 170,800,000 |
Long-term Line of Credit | 187,200,000 | 190,400,000 | 177,000,000 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 172,800,000 | $ 134,600,000 | $ 105,100,000 |
Line of Credit Facility, Interest Rate at Period End | 3.90% | 3.30% | 3.40% |
Line of Credit Facility, Average Outstanding Amount | $ 233,200 | $ 192,100 | $ 192,000 |
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 275,600 | $ 262,500 | $ 262,500 |
Line of Credit Facility, Interest Rate During Period | 3.70% | 4.10% | 4.00% |
Long-term Debt, Gross | $ 80,000,000 | ||
Debt Instrument, Unamortized Discount, Noncurrent | (1,224) | ||
Debt Issuance Costs, Noncurrent, Net | (1,141) | ||
Long-term Debt and Lease Obligation, Including Current Maturities | (1,328) | ||
Long-term Debt | $ 76,307,000 | $ 0 | $ 0 |
Schedule of Long-term Debt Instruments [Table] | October 31, (in thousands) Term Loan principal $ 80,000 Less: Unamortized discount, net (1,224) Less: Unamortized debt issuance costs, net (1,141) Term Loan, net 77,635 Less: Current portion, net (1,328) Long-term debt, net $ 76,307 | ||
Standby Letters of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Letters of Credit Outstanding, Amount | $ 7,800,000 | $ 6,200,000 | $ 6,200,000 |
2008 Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Letters of Credit Maximum Borrowing Capacitys | $ 50,000,000 | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | ||
Debt Issuance Costs, Gross | $ 5,900,000 | ||
Debt Issuance Costs, Net | 1,400,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 360,000,000 | ||
2008 Credit Agreement [Member] | Prime Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument Basis Spread On Variable Rate Low End Of Range | 1.75% | ||
Debt Instrument Basis Spread On Variable Rate High End Of Range | 1.88% | ||
2008 Credit Agreement [Member] | LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument Basis Spread On Variable Rate Low End Of Range | 2.50% | ||
Debt Instrument Basis Spread On Variable Rate High End Of Range | 2.75% | ||
Debt Instrument, Description of Variable Rate Basis | one, two, three, or six | ||
2008 Credit Agreement [Member] | Letter of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Letters of Credit Facility Commitment Fee Percentage Low End of Range | 1.25% | ||
Letters of Credit Facility Commitment Fee Percentage High End of Range | 1.38% | ||
2008 Credit Agreement [Member] | Standby Letters of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Letters of Credit Facility Commitment Fee Percentage Low End of Range | 2.00% | ||
Letters of Credit Facility Commitment Fee Percentage High End of Range | 2.25% |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Apr. 30, 2022 | Oct. 31, 2020 | May 09, 2024 | Apr. 30, 2023 | |
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | |||
Long-term Debt, Gross | $ 80,000 | |||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 80,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | |||
Interest Expense, Long-term Debt | $ 600 | |||
Debt Instrument, Interest Rate During Period | 9.50% | |||
Forecast [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 5.00% | 10.00% | 7.50% |
Long-Term Debt (Details)_2
Long-Term Debt (Details) $ in Thousands | 9 Months Ended |
Oct. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 9.00% |
Interest Expense, Long-term Debt | $ 600 |
LEGAL AND REGULATORY MATTERS (D
LEGAL AND REGULATORY MATTERS (Details) $ in Millions | Oct. 31, 2020USD ($) |
Loss Contingencies [Line Items] | |
Loss Contingency, Estimate of Possible Loss | $ 5 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 31, 2020 | Feb. 01, 2020 | Nov. 02, 2019 | |
Income Tax Disclosure [Abstract] | |||
Liability for Uncertainty in Income Taxes, Noncurrent | $ 6,821 | $ 6,782 | $ 5,050 |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | $ 100 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2020USD ($) | Nov. 02, 2019USD ($) | Oct. 31, 2020USD ($) | Nov. 02, 2019USD ($) | Feb. 01, 2020USD ($) | |
Segment Reporting [Abstract] | |||||
Percentage of Entity-Wide Sales Qualifying Purchaser as Major Customer | 10.00% | ||||
Gross Profit [Abstract] | |||||
Gross Profit | $ 146,065 | $ 198,125 | $ 193,472 | $ 488,946 | |
Operating Income (Loss) [Abstract] | |||||
Operating Income (Loss) | $ 23,323 | $ 57,951 | $ (214,304) | $ 66,824 | |
Operating Income Loss to net Sales Percentage [Abstract] | |||||
Operating Income Loss to net Sales Percentage | 5.50% | 11.00% | (20.40%) | 4.90% | |
Depreciation, Depletion and Amortization [Abstract] | |||||
Depreciation, Depletion and Amortization, Nonproduction | $ 15,809 | $ 18,821 | $ 50,405 | $ 55,877 | |
Payments to Acquire Productive Assets [Abstract] | |||||
Payments to Acquire Productive Assets | 9,495 | 20,556 | 23,763 | 42,396 | |
Assets [Abstract] | |||||
Assets | 1,206,943 | 1,285,722 | 1,206,943 | 1,285,722 | $ 1,181,397 |
The Childrens Place US Member | |||||
Operating Income (Loss) [Abstract] | |||||
Operating Income (Loss) | $ 17,491 | $ 48,129 | $ (204,468) | $ 55,722 | |
Operating Income Loss to net Sales Percentage [Abstract] | |||||
Operating Income Loss to net Sales Percentage | 4.70% | 10.30% | (21.70%) | 4.60% | |
Depreciation, Depletion and Amortization [Abstract] | |||||
Depreciation, Depletion and Amortization, Nonproduction | $ 14,542 | $ 16,971 | $ 46,322 | $ 50,301 | |
Payments to Acquire Productive Assets [Abstract] | |||||
Payments to Acquire Productive Assets | 9,413 | 20,326 | 23,046 | 41,741 | |
Assets [Abstract] | |||||
Assets | $ 1,113,309 | $ 1,179,493 | $ 1,113,309 | $ 1,179,493 | 1,080,665 |
Number of Stores | 702 | 834 | 702 | 834 | |
The Children's Place Canada [Member] | |||||
Operating Income (Loss) [Abstract] | |||||
Operating Income (Loss) | $ 5,832 | $ 9,822 | $ (9,836) | $ 11,102 | |
Operating Income Loss to net Sales Percentage [Abstract] | |||||
Operating Income Loss to net Sales Percentage | 11.20% | 17.20% | (9.10%) | 7.90% | |
Depreciation, Depletion and Amortization [Abstract] | |||||
Depreciation, Depletion and Amortization, Nonproduction | $ 1,267 | $ 1,850 | $ 4,083 | $ 5,576 | |
Payments to Acquire Productive Assets [Abstract] | |||||
Payments to Acquire Productive Assets | 82 | 230 | 717 | 655 | |
Assets [Abstract] | |||||
Assets | $ 93,634 | $ 106,229 | $ 93,634 | $ 106,229 | $ 100,732 |
Number of Stores | 107 | 121 | 107 | 121 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Subsequent Event [Line Items] | ||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0 | $ 0.56 | $ 0 | $ 1.68 |