Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 30, 2021 | Mar. 31, 2021 | Jul. 31, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 30, 2021 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | JILL | ||
Entity Registrant Name | J.Jill, Inc. | ||
Entity Central Index Key | 0001687932 | ||
Current Fiscal Year End Date | --01-30 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | true | ||
ICFR Auditor Attestation Flag | false | ||
Entity Ex Transition Period | true | ||
Entity Public Float | $ 9,602,201 | ||
Entity Common Stock, Shares Outstanding | 9,707,323 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-38026 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 45-1459825 | ||
Entity Address, Address Line One | 4 Batterymarch Park Quincy | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02169 | ||
City Area Code | (617) | ||
Local Phone Number | 376-4300 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference [Text Block] | Portions of Part II and Part III of this Form 10-K are incorporated by reference from the Registrant’s definitive proxy statement for its 2021 annual meeting of shareholders to be filed with the Securities and Exchange Commission no later than 120 days after the end of the Registrant’s fiscal year. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Current assets: | ||
Cash | $ 4,407 | $ 21,527 |
Accounts receivable | 7,793 | 7,408 |
Inventories, net | 58,034 | 72,599 |
Prepaid expenses and other current assets | 43,035 | 21,416 |
Total current assets | 113,269 | 122,950 |
Property and equipment, net | 73,906 | 107,645 |
Intangible assets, net | 88,976 | 112,814 |
Goodwill | 59,697 | 77,597 |
Operating lease assets, net | 161,135 | 211,332 |
Other assets | 199 | 1,650 |
Total assets | 497,182 | 633,988 |
Current liabilities: | ||
Accounts payable | 56,263 | 43,053 |
Accrued expenses and other current liabilities | 43,854 | 42,712 |
Current portion of long-term debt | 2,799 | 2,799 |
Current portion of operating lease liabilities | 37,967 | 33,875 |
Borrowings under revolving credit facility | 11,146 | |
Total current liabilities | 152,029 | 122,439 |
Long-term debt, net of discount and current portion | 225,401 | 231,200 |
Long-term debt, net of discount - related party | 3,311 | |
Deferred income taxes | 13,835 | 31,034 |
Operating lease liabilities, net of current portion | 179,022 | 208,800 |
Warrants - related party | 15,997 | |
Derivative liability | 2,436 | |
Other liabilities | 2,049 | 1,950 |
Total liabilities | 594,080 | 595,423 |
Commitments and contingencies (see Note 12) | ||
Shareholders’ Equity | ||
Common stock, par value $0.01 per share; 50,000,000 shares authorized; 9,631,633 and 8,857,625 shares issued and outstanding at January 30, 2021 and February 1, 2020, respectively | 97 | 89 |
Additional paid-in capital | 129,363 | 125,430 |
Accumulated deficit | (226,358) | (86,954) |
Total shareholders’ (deficit) equity | (96,898) | 38,565 |
Total liabilities and shareholders’ equity | $ 497,182 | $ 633,988 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 30, 2021 | Feb. 01, 2020 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 9,631,633 | 8,857,625 |
Common stock, shares outstanding | 9,631,633 | 8,857,625 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 426,730 | $ 691,345 | $ 706,262 |
Costs of goods sold | 181,103 | 262,766 | 245,982 |
Gross profit | 245,627 | 428,579 | 460,280 |
Selling, general and administrative expenses | 343,448 | 406,744 | 399,042 |
Impairment of long-lived assets | 33,777 | 2,325 | 0 |
Impairment of goodwill | 17,900 | 119,428 | |
Impairment of intangible assets | 14,620 | 12,100 | |
Operating (loss) income | (164,118) | (112,018) | 61,238 |
Fair value adjustment of derivative | 1,005 | ||
Fair value adjustment of warrants - related party | 4,214 | ||
Interest expense, net | 17,695 | 19,571 | 19,064 |
Interest expense, net - related party | 534 | ||
(Loss) income before provision for income taxes | (187,566) | (131,589) | 42,174 |
Income tax (benefit) provision | (48,162) | (3,022) | 11,649 |
Net (loss) income and total comprehensive (loss) income | $ (139,404) | $ (128,567) | $ 30,525 |
Net (loss) income per common share attributable to common shareholders: | |||
Basic | $ (15.22) | $ (14.69) | $ 3.57 |
Diluted | $ (15.22) | $ (14.69) | $ 3.45 |
Weighted average number of common shares outstanding: | |||
Basic | 9,159,686 | 8,749,865 | 8,554,263 |
Diluted | 9,159,686 | 8,749,865 | 8,847,950 |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in-Capital [Member] | Accumulated (Deficit) Earnings [Member] |
Beginning balance at Feb. 03, 2018 | $ 179,316 | $ 88 | $ 117,742 | $ 61,486 |
Beginning balance (Accounting Standards Update 2014-09) at Feb. 03, 2018 | (288) | (288) | ||
Beginning balance, shares at Feb. 03, 2018 | 8,750,558 | |||
Vesting of restricted stock | 1 | 1 | ||
Vesting of restricted stock units, shares | 2,665 | |||
Forfeiture of restricted stock awards | (2) | (2) | ||
Forfeiture of restricted stock awards, shares | (28,508) | |||
Common stock issued under employee stock purchase plan | 233 | 233 | ||
Common stock issued under employee stock purchase plan, shares | 9,769 | |||
Equity-based compensation | 4,010 | 4,010 | ||
Net income (loss) | 30,525 | 30,525 | ||
Ending balance at Feb. 02, 2019 | 213,795 | $ 88 | 121,984 | 91,723 |
Ending balance (Accounting Standards Update 2016-02) at Feb. 02, 2019 | 44 | 44 | ||
Ending balance, shares at Feb. 02, 2019 | 8,734,484 | |||
Special cash dividend($5.75 per share) | (50,154) | (50,154) | ||
Vesting of restricted stock | $ 2 | (2) | ||
Vesting of restricted stock units, shares | 198,733 | |||
Forfeiture of restricted stock awards, shares | (33,754) | |||
Surrender of shares to pay withholding taxes | (1,407) | $ (1) | (1,406) | |
Surrender of shares to pay withholding taxes, Shares | (69,724) | |||
Forfeitable dividend | 115 | 115 | ||
Common stock issued under employee stock purchase plan | 135 | 135 | ||
Common stock issued under employee stock purchase plan, shares | 27,886 | |||
Equity-based compensation | 4,604 | 4,604 | ||
Net income (loss) | (128,567) | (128,567) | ||
Ending balance at Feb. 01, 2020 | $ 38,565 | $ 89 | 125,430 | (86,954) |
Ending balance, shares at Feb. 01, 2020 | 8,857,625 | 8,857,625 | ||
Vesting of restricted stock | $ 2 | $ 2 | ||
Vesting of restricted stock units, shares | 167,538 | |||
Forfeiture of restricted stock awards, shares | (662) | |||
Participating lender equity consideration | 1,957 | $ 6 | 1,951 | |
Participating lender equity consideration, shares | 656,717 | |||
Surrender of shares to pay withholding taxes | (178) | (178) | ||
Surrender of shares to pay withholding taxes, Shares | (49,585) | |||
Equity-based compensation | 2,160 | 2,160 | ||
Net income (loss) | (139,404) | (139,404) | ||
Ending balance at Jan. 30, 2021 | $ (96,898) | $ 97 | $ 129,363 | $ (226,358) |
Ending balance, shares at Jan. 30, 2021 | 9,631,633 | 9,631,633 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholder's Equity (Deficit) (Parenthetical) - $ / shares | Feb. 01, 2020 | Mar. 06, 2019 |
Statement Of Stockholders Equity [Abstract] | ||
Dividend declared (in dollars per share) | $ 5.75 | $ 5.75 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Statement Of Cash Flows [Abstract] | |||
Net (loss) income | $ (139,404) | $ (128,567) | $ 30,525 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 33,684 | 37,916 | 36,743 |
Impairment of goodwill and indefinite-lived intangible assets | 32,520 | 131,528 | |
Impairment of long-lived assets | 33,777 | 2,325 | 0 |
Adjustment for exited retail stores | (1,444) | ||
Loss on disposal of fixed assets | 969 | 151 | 128 |
Impairment loss (gain) on barter arrangement | 1,966 | (1,274) | |
Noncash interest expense, net | 2,216 | 1,756 | 1,602 |
Noncash change in fair value of derivative | 1,005 | ||
Noncash change in fair value of warrants - related party | 4,214 | ||
Equity-based compensation | 2,160 | 4,604 | 4,010 |
Deferred rent incentives | (183) | (177) | (135) |
Deferred income taxes | (17,199) | (10,824) | (4,319) |
Changes in operating assets and liabilities | |||
Accounts receivable | (385) | (3,401) | 726 |
Inventories | 14,565 | 4,024 | 3,242 |
Prepaid expenses and other current assets | (21,618) | 3,357 | (7,639) |
Accounts payable | 13,439 | (11,337) | 471 |
Accrued expenses | 2,223 | 31 | (1,595) |
Operating lease assets and liabilities | 2,991 | 2,861 | |
Other noncurrent assets and liabilities | (307) | (320) | 3,744 |
Net cash (used in) provided by operating activities | (34,811) | 32,653 | 67,503 |
Investing activities: | |||
Purchases of property and equipment | (3,805) | (18,222) | (24,710) |
Net cash used in investing activities | (3,805) | (18,222) | (24,710) |
Financing activities: | |||
Borrowings under revolving credit facility | 59,155 | ||
Repayments of revolving credit facility | (48,009) | ||
Borrowings under subordinated facility, net of issuance costs - related party | 14,560 | ||
Lender fees for priming loans | (1,235) | ||
Repayments on debt | (2,799) | (7,799) | (2,799) |
Proceeds from employee stock purchases | 134 | 232 | |
Special dividend paid to shareholders | (50,154) | ||
Surrender of shares to pay withholding taxes | (176) | (1,403) | |
Forfeitable dividend | 114 | ||
Net cash provided by (used in) financing activities | 21,496 | (59,108) | (2,567) |
Net change in cash | (17,120) | (44,677) | 40,226 |
Cash: | |||
Beginning of Period | 21,527 | 66,204 | 25,978 |
End of Period | 4,407 | 21,527 | 66,204 |
Supplemental cash flow information: | |||
Cash paid for interest | 14,207 | 18,107 | 17,996 |
Cash paid for income taxes | 20 | 7,187 | 23,092 |
Noncash investing and financing activities: | |||
Capital expenditures financed with the ending balance in accounts payable and accrued expenses | 157 | $ 1,334 | $ 1,935 |
Exchange of priming loans for term loans | 228,623 | ||
Non cash lender fees: | |||
Warrants issued for subordinated facility | 11,782 | ||
Equity and embedded derivative issued for priming loans | $ 3,388 |
General
General | 12 Months Ended |
Jan. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
General | 1. General J.Jill is a premier omnichannel retailer and nationally recognized women’s apparel brand committed to delighting customers with great wear-now product. The brand represents an easy, thoughtful and inspired style that reflects the confidence of remarkable women who live life with joy, passion and purpose. J.Jill offers a guiding customer experience through about 267 stores nationwide and a robust ecommerce platform. J.Jill is headquartered outside Boston. J.Jill, Inc. is a holding company, and Jill Acquisition LLC, its wholly-owned subsidiary, is the operating company for the business assets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s fiscal year ends on the Saturday, in January or February, nearest the last day of January, resulting in an additional week of results every five or six years. The Fiscal Years of 2020, 2019 and 2018 contained 52-weeks of operations. Certain prior year amounts have been restated to reflect the reverse stock split on November 9, 2020 including Common stock par value and Additional paid-in capital on the consolidated balance sheets and, shares and per share amounts on the consolidated statements of operations and comprehensive income. The prior year’s impairment of long-lived assets has been reclassified to be consistent with the current year presentation on the consolidated statements of operations and comprehensive income. The prior year’s accounts receivable from liquidators has been reclassified from Prepaid and other current assets to Accounts receivable to be consistent with the current year presentation on the consolidated balance sheets. Substantial Doubt about the Company’s Ability to Continue as a Going Concern In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-15, “Presentation of Financial Statements - Going Concern”, the Company’s management evaluated whether there are conditions or events that raise substantial doubt about its ability to continue as a going concern within one year after the date of issuance of these financial statements. Although the following matters raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date these financial statements have been issued, the Company’s consolidated financial statements have been prepared assuming that it will continue as a going concern. In December 2019, COVID-19 emerged and has subsequently spread worldwide. The World Health Organization declared COVID-19 a pandemic on March 11, 2020 resulting in federal, state and local governments and private entities mandating various restrictions, including travel restrictions, restrictions on public gatherings, stay at home orders and advisories and quarantining of people who may have been exposed to the virus. After close monitoring and taking into consideration the guidance from federal, state and local governments, in an effort to mitigate the spread of COVID-19, effective March 18, 2020, the Company closed all of its stores and its offices with employees working remotely where possible. The Company began reopening its stores in May 2020, with all stores having been reopened by late June 2020; however, operations of the stores may again be restricted by local guidelines. As a result of COVID-19, the Company’s revenues, results of operations and cash flows were materially adversely impacted, which resulted in a failure by us to comply with the financial covenants contained in our ABL Facility and Term Loan. substantial doubt about the Company’s ability to continue as During 2020, the Company entered into forbearance agreements (the “Forbearance Agreements”) with the lenders under its ABL Facility and Term Loan. Under the Forbearance Agreements, the respective lenders agreed not to exercise any rights and remedies through the period of time that allowed the Company to enter into a Transaction Support Agreement (“TSA”) on August 31, 2020 with lenders holding greater than 70% of the Company’s term loans (“Consenting Lenders”) and a majority of our shareholders on the principal terms of a financial restructuring (“Transaction”). The Transaction was consented to by the requisite term loan lenders and was consummated on an out-of-court basis on September 30, 2020. The Transaction resulted in a waiver of any past non-compliance with the terms of the Company’s credit facilities, provided the Company with additional liquidity and extended the maturity of Debt for a further discussion of the Company’s debt restructuring. The Company could experience other potential impacts because of COVID-19, including, but not limited to, additional charges from potential adjustments to the carrying amount of its inventory, goodwill, intangible assets, right-of-use assets, and long-lived assets as well as additional store closures. Actual results may differ materially from the Company’s current estimates as considerable risk remains related to the performance of stores, the resilience of the customer in an uncertain economic climate, and the possibility of a resurgence of COVID-19 with its potential for future business disruption and the related impacts on the U.S. economy in the coming 12 months. If one or more of these risks materialize, we believe that our current liquidity and capital may not be sufficient to finance our continued operations for at least the next 12 months. These risks raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date these financial statements have been issued. In response to the impacts of COVID-19, we improved our financial flexibility by restructuring our debt with an extended maturity. Additionally, we have taken and continue to take actions to reduce expenses and manage working capital to preserve cash on-hand. These actions include, but are not limited to: • reduced staffing and operating hours at retail locations for a phase-in period since reopening; • extension of payment terms with vendors; • negotiated with certain landlords for rent abatements and/or rent deferrals; • eliminated approximately half of our catalogs; • managed our inventory levels; and • reduced capital expenditures. Use of Estimates The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and judgments that affect reported amounts of assets, liabilities, shareholders’ equity, net sales and expenses, and the disclosure of contingent assets and liabilities. Significant estimates relied upon in preparing these consolidated financial statements include, but are not limited to, revenue recognition, including accounting for gift card breakage and estimated merchandise returns; estimating the value of inventory; impairment assessments for goodwill and other indefinite-lived intangible assets, and long-lived assets; and estimating equity-based compensation expense. As a result of COVID-19, the Company considered relevant impacts to its estimates related to merchandise returns reserve, estimating the fair value of inventory and inventory reserves; impairment assessments of goodwill, intangible assets, and other long-lived assets and there may be changes to those estimates in future periods. Actual results could differ from those estimates, and such differences could be material. Principles of Consolidation The accompanying consolidated financial statements include the assets, liabilities and results of operations of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements. Segment Reporting The Company determined its operating segments on the same basis that it assesses performance and makes operating decisions. The Company’s operating segments consist of its Retail and Direct channels, which have been aggregated into one reportable segment. All of the Company’s identifiable assets are located in the United States, which is where the Company is domiciled. The Company does not have sales outside the United States, nor does any customer represent more than 10% of total revenues for any period presented. Cash Cash includes cash on hand, demand deposits and all highly liquid investments with original maturities at the time of purchase of three months or less. Accounts Receivable The Company’s accounts receivable relate primarily to payments due from banks for credit and debit transactions for approximately 2 to 5 days of sales. These receivables do not bear interest. The Company occasionally sells inventory to liquidators, and if these sales occur near the end of a reporting period, they are also included in accounts receivable. Inventories Inventory consists of finished goods held for sale. Inventory is stated at the lower of cost or net realizable value. Cost is calculated using the weighted average method of accounting, and includes the cost to purchase merchandise from the Company’s manufacturers plus duties, tariffs, inbound freight and commissions. The net realizable value of the Company’s inventory is estimated based on historical experience, current and forecasted demand, and market conditions. The allowance for excess and obsolete inventory requires management to make assumptions and to apply judgment regarding a number of factors, including estimates applying past and projected sales performance to current inventory levels. As of January 30, 2021 and February 1, 2020, an inventory reserve of $6.4 million and $3.8 million has been recorded, respectively. The Company sells excess inventory in its stores, on-line at www.jjill.com Inventory from domestic suppliers is recorded when it is received at the distribution center. Inventory from foreign suppliers is recorded when goods are cleared for export on board the ship at the port of shipment. Property and Equipment Property and equipment purchases are recorded at cost. Property and equipment is presented net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized over the shorter of the term of the related lease or the estimated useful lives of the improvements. Expenditures for repairs and maintenance are charged to expense as incurred. Expenditures for betterments and major improvements that significantly enhance the value and increase the estimated useful life of the asset are capitalized and depreciated over the new estimated useful life. The carrying amounts of assets sold or retired and the related accumulated depreciation are eliminated in the year of disposal, and any resulting gains or losses are included in the consolidated statements of operations and comprehensive income. Estimated useful lives of property and equipment asset categories are as follows: Furniture, fixtures and equipment 5-7 years Computer software and hardware 3-5 years Leasehold improvements Shorter of estimated useful life or lease term Capitalized Interest The cost of interest that is incurred in connection with ongoing construction projects is capitalized using a weighted average interest rate. These costs are included in property and equipment and amortized over the useful life of the related property or equipment. Long-lived Assets The carrying value of long-lived assets, including amortizable identifiable intangible assets, and asset groups are evaluated whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant decrease in the market price of an asset, a significant adverse change in the extent or manner in which an asset is being used or a significant decrease in its physical condition, and operating performance that demonstrates continuing cash flow losses associated with an asset or asset group. A potential impairment has occurred if the projected future undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group are less than the carrying value of the asset or asset group. The estimate of cash flows includes management’s assumptions of cash inflows and outflows directly resulting from the use of the asset in operation. If the carrying value exceeds the sum of the undiscounted cash flows, an impairment charge is recorded equal to the excess of the asset or asset group’s carrying value over its fair value. Fair value is measured based on a projected discounted cash flow model using a discount rate the Company believes is commensurate with the market participant rate. The fair value measurement includes the fair value of the right of use asset and will not be written down below the asset’s fair value. Any impairment charge would be recognized within operating expenses. Goodwill and Indefinite-lived Intangible Assets Goodwill and indefinite-lived intangible assets are not amortized, but are reviewed for impairment at least annually, or more frequently when events or changes in circumstances indicate that the carrying value may not be recoverable. Judgments regarding indicators of potential impairment are based on market conditions and operational performance of the business. At each fiscal year-end, the Company performs an impairment analysis of goodwill. The Company may assess its goodwill for impairment initially using a qualitative approach to determine whether conditions exist to indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying value. If management concludes, based on its assessment of relevant events, facts and circumstances that it is more likely than not that a reporting unit’s carrying value is greater than its fair value, then a quantitative analysis will be performed to determine if there is any impairment. The Company may also elect to initially perform a quantitative analysis instead of starting with a qualitative approach. The quantitative assessment requires comparing the fair value of a reporting unit to its carrying value, including goodwill. The Company estimates fair value using the income approach. The income approach uses a discounted cash flow model, which involves significant estimates and assumptions, including preparation of revenue and profitability growth forecasts, selection of a discount rate, and selection of a terminal year multiple. These assumptions are classified as Level 3 inputs. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and no further testing is required. If the carrying amount exceeds the reporting unit’s fair value, a goodwill impairment charge is recognized for the amount in excess, not to exceed the total amount of goodwill allocated to that reporting unit. An impairment charge is recorded within the Company’s consolidated statements of operations and comprehensive income. At each year end, the Company also performs an impairment analysis of its indefinite-lived intangible assets. The Company performs an impairment analysis of its indefinite-lived intangible assets at least annually during the fourth fiscal quarter, or whenever events or changes in circumstances indicate that its carrying value may not be recoverable. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. The Company measures the fair value of its trade name using the relief from royalty method. The most significant estimates and assumptions inherent in this approach are the preparation of revenue forecasts, selection of royalty and discount rates and a terminal year multiple. These assumptions are classified as Level 3 inputs. Revenue Recognition Revenue is primarily derived from the sale of apparel and accessory merchandise through our Retail channel and Direct channel, which includes website and catalog phone orders. Revenue recognition guidance requires entities to recognize revenue when control of the promised goods or services are transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. Revenue from our Retail channel is recognized at the time of sale and revenue from our Direct channel is recognized upon shipment of merchandise to the customer. The Company has a return policy where merchandise returns will be accepted within 90 days of the original purchase date. At the time of sale, the Company records an estimated sales reserve for merchandise returns based on historical prior returns experience and expected future returns. The estimated sales reserve is recorded as a return asset (and corresponding adjustment to cost of goods sold) for the cost of inventory and a return liability for the amount to settle the return with a customer (and a corresponding adjustment to revenue). The return asset and return liability are recorded in Prepaid expenses and other current assets, and Accrued expenses and other current liabilities, respectively, in the consolidated balance sheets. The Company collects and remits sales and use taxes in all states in which Retail and Direct sales occur and taxes are applicable. These taxes are reported on a net basis and are thereby excluded from revenue. The Company sells gift cards without expiration dates to customers. The Company does not charge administrative fees on unused gift cards. Proceeds from the sale of gift cards are recorded as a contract liability until the customer redeems the gift card or when the likelihood of redemption is remote. Based on historical experience, the Company estimates the value of outstanding gift cards that will ultimately not be redeemed (“gift card breakage”) and will not be escheated under statutory state unclaimed property laws. This gift card breakage is recognized as revenue over the time period established by the Company’s historical gift card redemption pattern. The Company recognizes revenues from shipments to customers before the shipping and handling activities occur and will accrue those related costs. Shipping and handling costs are recorded in selling, general and administrative expenses. Costs of Goods Sold The Company’s costs of goods sold includes the direct costs of sold merchandise, which include customs, taxes, duties, commissions and inbound shipping costs, inventory shrinkage, and adjustments and reserves for excess, aged and obsolete inventory. Costs of goods sold does not include distribution center costs and allocations of indirect costs, such as occupancy, depreciation, amortization, or labor and benefits. Advertising Costs The Company incurs costs to produce, print, and distribute its catalogs. Catalog costs are capitalized as incurred and expensed when the catalog is mailed to the customer (the first time the advertising occurs). Advertising expenses were $15.6 million, $32.6 million, and $38.5 million for the Fiscal Years 2020, 2019, and 2018, respectively. The costs are included in Selling, general and administrative expenses in the consolidated statements of operations and comprehensive income. Other advertising costs are recorded as incurred. Other advertising costs recorded were $16.2 million, $26.3 million, and $23.8 million for the Fiscal Years 2020, 2019, and 2018, respectively. The costs are included in Selling, general and administrative expenses in the consolidated statements of operations and comprehensive income. Operating Leases The Company determines if an arrangement is a lease at inception. Lease agreements will typically exist with lease and non-lease components, which are generally accounted for separately. The Company recognizes operating lease liabilities equal to the present value of the lease payments and operating lease assets representing the right to use the underlying asset for the lease term. The lease expense for lease payments is recognized on a straight-line basis over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at lease commencement in determining the present value of lease payments. The operating lease assets include any lease payments made prior to lease commencement and are reduced by any lease incentives. Under lease accounting guidance, for any new leases entered into, the Company assesses if it is reasonably certain to exercise lease options to extend or terminate the lease for inclusion (or exclusion) in the lease term when the Company measures the lease liability. The depreciable life of any assets and leasehold improvements are limited by the expected lease term. Certain of the Company’s retail operating leases include variable rental payments based on a percentage of retail sales over contractual levels. Variable rental payments are recognized in the consolidated statements of operations and comprehensive income in the period in which the obligation for those payments is incurred. If such variable operating leases arise that include incentives from landlords in the form of cash, the Company will record the full amount of the incentive when specific performance criteria are met as a deferred liability. The deferred liability is amortized into income as a reduction of rent expense over the term of the applicable lease, including options to extend if they are reasonably certain to be exercised. The Company recognized those liabilities to be amortized within a year as a current liability and those greater than a year as a long-term liability. For purposes of recognizing these incentives and rental expenses on a straight-line basis, the Company uses the date it obtains the legal right to use and control the lease asset to begin amortization, which is generally when the Company takes possession of the asset. Debt Issuance Costs The Company defers costs directly associated with acquiring third-party financing. Debt issuance costs are deferred and amortized using the effective interest rate method over the term of the related long-term debt agreement and the straight-line method for the revolving credit agreement. Debt issuance costs related to long-term debt are reflected as a direct deduction from the carrying amount of the debt on the Company’s balance sheet. From time-to-time the Company could make prepayments on the long-term debt and a portion of the debt issuance costs associated with the prepayment would be accelerated and expensed at that time. Income Taxes The Company accounts for income taxes using the asset and liability method and elected to be taxed as a C corporation. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying values and their respective tax bases, using enacted tax rates expected to be applicable in the years in which the temporary differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company evaluates the realizability of its deferred tax assets and establishes a valuation allowance when it is more likely than not that all or a portion of the deferred tax assets will not be realized. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected, scheduling of anticipated reversals of taxable temporary differences, and considering prudent and feasible tax planning strategies. The Company records liabilities for uncertain income tax positions based on a two-step process. The first step is recognition, where an individual tax position is evaluated as to whether it has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have less than a 50% likelihood of being sustained, no tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, the Company performs the second step of measuring the benefit to be recorded. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized on ultimate settlement. The actual benefits ultimately realized may differ from the estimates. In future periods, changes in facts, circumstances and new information may require the Company to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in income tax expense and liability in the period in which such changes occur. Any interest or penalties incurred are recorded in Selling, general, and administrative expenses in the accompanying consolidated statements of operations and comprehensive income. The Company incurred immaterial amounts of interest expense and penalties related to income taxes for Fiscal Years 2020, 2019 and 2018. Comprehensive Income Comprehensive income is a measure of net income and all other changes in equity that result from transactions other than with equity holders and would normally be recorded in the consolidated statements of shareholders’ equity and the consolidated statements of comprehensive income. The Company’s management has determined that net income is the only component of the Company’s comprehensive income. Accordingly, there is no difference between net income and comprehensive income. Equity-based Compensation The Company accounts for equity-based compensation for employees and directors by recognizing the fair value of equity-based compensation as an expense in the calculation of net income, based on the grant-date fair value. The Company recognizes equity-based compensation expense in the periods in which the employee or director is required to provide service, which is generally over the vesting period of the individual equity instruments. The fair value of the equity-based awards is determined using the Black-Scholes option pricing model or the stock price on the date of grant. All of the equity-based awards granted by the Company during the Fiscal Years Earnings Per Share Basic net income per common share attributable to common shareholders is calculated by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income per common share attributable to common shareholders is calculated by dividing net income attributable to common shareholders by the diluted weighted average number of common shares outstanding for the period. There were no potentially dilutive securities outstanding during Fiscal Years 2020 and 2019 because the Company incurred a Net loss in those fiscal years. There were 1.5 million dilutive securities outstanding during the Fiscal Year 2018. Out-of-Period Item During the fourth quarter of Fiscal 2020, we recorded a correction of prior period errors which increased Net sales by $4.9 million and increased Costs of goods sold by $2.5 million resulting in a benefit to Operating loss and Loss before provision for income taxes of $2.4 million and a benefit to Net loss of $1.7 million. The correction was associated with errors in the Company’s historical methodology for determining its sales returns reserve. We evaluated the total out-of-period adjustments impacting Fiscal 2020 and prior periods, both individually and in the aggregate, in relation to the quarterly and annual periods in which they originated and the annual period in which they were corrected, and concluded that these adjustments were not material to our consolidated annual and interim financial statements for all impacted periods. Credit Card Agreement The Company has an arrangement with a third party to provide a private label credit card to its customers through August 2023, and will automatically renew thereafter for successive two year terms. The Company does not bear the credit risk associated with the private label credit card at any point prior to the termination of the agreement, at which point the Company would be obligated to purchase the receivables. If the arrangement is terminated prior to September 7, 2021 and other criteria are met, the Company is obligated to pay a purchase price premium. The potential impact of the purchase obligation cannot be reasonably estimated, and therefore, has not been recorded. The Company receives royalty payments through its private label credit card agreement. The royalty payments are recognized as revenue when they are received. Royalty payments recognized were $3.3 million, $5.6 million, and $5.6 million for the Fiscal Years 2020, 2019 and 2018, respectively. The Company also receives reimbursements for costs of marketing programs related to the private label credit card, which are recorded as revenue as earned and the costs incurred are recorded as Selling, general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income. Reimbursements for costs of marketing programs of $0.9 million, $1.9 million, and $2.4 million were recognized in revenue in Fiscal Years 2020, 2019 and 2018, respectively. The credit card agreement provides a signing bonus to the Company, which is being recognized into revenue over the life of the agreement. Employee Benefit Plan The Company has a 401(k) retirement plan covering all eligible employees who meet certain age and employment requirements pursuant to Section 401(k) of the Internal Revenue Code. Subject to certain dollar limits, eligible employees may contribute a portion of their pretax annual compensation to the plan, on a tax-deferred basis. The plan operates on a calendar year basis. The Company may, at its discretion, make elective contributions of up to 50% of the first 6% of the gross salary of the employee, which vests over a five-year period. Discretionary contributions made by the Company for the Fiscal Years 2020, 2019 and 2018 were $1.1 million, $1.5 million, and $1.5 million, respectively. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk principally consist of cash held in financial institutions and accounts receivable. The Company considers the credit risk associated with these financial instruments to be minimal. Cash is held by financial institutions with high credit ratings and the Company has not historically sustained any credit losses associated with its cash balances. The Company evaluates the credit risk associated with accounts receivable to determine if an allowance for doubtful accounts is necessary. As of January 30, 2021 and February 1, 2020, the Company determined that no allowance for estimated credit losses was necessary. |
Accounting Standards
Accounting Standards | 12 Months Ended |
Jan. 30, 2021 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Accounting Standards | 3. Accounting Standards As an ‘‘emerging growth company’’ (‘‘EGC’’), the Jumpstart Our Business Startups Act (‘‘JOBS Act’’) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected not to take advantage of the extended transition period under the JOBS Act. As a “small reporting company” (“SRC”), the SEC allows the Company to delay adoption of certain new or revised accounting pronouncements applicable. The adoption dates discussed below reflect SRC delayed adoption dates, if applicable. Recently Adopted Accounting Standards The Company adopted ASU 2016-02- Leases The Company applied a portfolio approach to effectively account for the operating lease liabilities and operating lease assets; the Company did not have financing leases. The Company excludes leases with an initial term of 12 months or less from the application of Topic 842. The Company did not elect the hindsight practical expedient; therefore, upon adoption, the Company used the remaining lease term of the current lease, option or extension. Adoption of the new standard resulted in the recording of operating lease assets and operating lease liabilities of $223.3 million and $250.5 million, respectively, on the Company’s consolidated balance sheets as of February 3, 2019. The difference between the approximate value of the operating lease assets and liabilities is attributable to deferred rent, lease incentives, leasehold interests and prepaid rent. There was no material impact on the Company’s consolidated statements of operations and comprehensive income or consolidated statements of cash flows. The Company’s comparative periods continue to be presented and disclosed in accordance with legacy guidance in Topic 840. In May 2014, the FASB issued ASU 2014-09 – Revenue from Contracts with Customers (Topic 606) Revenue Recognition The Company adopted ASU 2014-09 and related amendments, collectively known as Accounting Standards Codification 606 (“Topic 606”) as of February 4, 2018 on a modified retrospective basis applied to contracts which were not completed as of February 4, 2018. As part of the adoption of Topic 606, Topic 340-20 – Capitalized Advertising Costs Advertising Costs In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” Topic 326, “Measurement of Credit Losses on Financial Instruments” (ASU 2016-13), subsequently amended by various standard updates. ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information when determining credit loss estimates. ASU 2016-13 also requires financial assets to be measured net of expected credit losses at the time of initial recognition. ASU 2019-10, issued in November 2019, delayed the effective date of ASU 2016-13. ASU 2016-13 is effective for a public company’s annual reporting periods beginning after December 15, 2019, and interim periods within those annual periods. The Company elected to early adopt ASU 2016-13 during Fiscal Year 2020. Given that a significant majority of revenue transactions are point of sale transactions whereby the Company does not extend credit to the customer, the adoption of this guidance did not have a significant impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company elected to early adopt ASU 2016-13 during Fiscal Year 2020. The adoption of this guidance did not have a significant impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract,” which will align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted ASU 2018-15 in Fiscal Year 2020. The adoption of this guidance did not have a significant impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes” . The pronouncement is effective for a public company’s annual reporting periods beginning after December 15, 2020, and interim periods within those annual periods. As an EGC, the Company has elected to adopt the pronouncement following the effective date for private companies beginning with annual reporting periods beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact that this standard will have on the consolidated financial statements. The Company plans to adopt the pronouncement in Fiscal Year 2022. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform” , which provides temporary optional guidance to companies impacted by the transition away from the London Interbank Offered Rate (“LIBOR”). The guidance provides certain expedients and exceptions to applying GAAP in order to lessen the potential accounting burden when contracts, hedging relationships, and other transactions that reference LIBOR as a benchmark rate are modified. The guidance is currently effective and may be applied prospectively at any point through December 31, 2022. The Company is assessing what impact this guidance will have on the Company’s consolidated financial statements. |
Revenues
Revenues | 12 Months Ended |
Jan. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | 4. Revenues Disaggregation of Revenue The Company sells its apparel and accessory merchandise through retail stores (“Retail”) and through its website and catalog orders (“Direct”). The following table presents revenues disaggregated by revenue source (in thousands): For the Fiscal Year Ended January 30, 2021 For the Fiscal Year Ended February 1, 2020 For the Fiscal Year Ended February 2, 2019 Retail $ 147,420 $ 389,521 $ 412,640 Direct 279,310 301,824 293,622 Net revenues $ 426,730 $ 691,345 $ 706,262 Contract Liabilities The Company recognizes a contract liability when it has received consideration from the customer and has a future obligation to the customer. Total contract liabilities consisted of the following (in thousands): January 30, 2021 February 1, 2020 Contract liabilities: Signing bonus $ 365 $ 506 Unredeemed gift cards 6,818 7,264 Total contract liabilities ( 1) $ 7,183 $ 7,770 (1) Included in Accrued expenses and other current liabilities on the Company’s consolidated balance sheets. The short-term portion of the signing bonus is included in Accrued expenses and other current liabilities on the Company’s consolidated balance sheets. For the Fiscal Years 2020, 2019, 2018, the Company recognized approximately $8.9 million, $12.8 million, and $12.4 million of revenue related to gift card redemptions and breakage, respectively. Revenue recognized consists of gift cards that were part of the unredeemed gift card balance at the beginning of the period as well as gift cards that were issued during the period. Performance Obligations The Company has a remaining performance obligation of $0.4 million for a signing bonus related to the private label credit card agreement that is being amortized to revenue evenly through the third quarter of Fiscal Year 2023. Unredeemed gift cards also require a performance obligation for revenue to be recognized, but substantially all gift cards are redeemed in the first year of issuance. Practical Expedients and Policy Elections The Company excludes from its transaction price all amounts collected from customers for sales taxes that are remitted to taxing authorities. Shipping and handling activities that occur after control of related goods transfers to the customer are accounted for as fulfillment activities rather than assessing these activities as performance obligations. The Company does not disclose remaining performance obligations that have an expected duration of one year or less. Insurance Recovery The Company filed an insurance claim as a result of a cargo vessel fire on or about January 8, 2019, where contents of two containers carried J.Jill inventory. In July 2019, it was determined that the inventory onboard the cargo vessel was nonsalable and the insurance claim was settled for $3.3 million. The Company recorded a gain of $2.4 million on insurance proceeds in Selling, general and administrative expenses in the consolidated statement of operations and comprehensive income for the fiscal year ended February 1, 2020. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Jan. 30, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | 5. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets include the following (in thousands): January 30, 2021 February 1, 2020 Prepaid rent $ 2,638 $ 2,494 Prepaid catalog costs 1,498 2,590 Prepaid store supplies 1,443 2,102 Returns reserve asset 3,990 5,134 Income tax receivable 28,014 3,298 Other prepaid expenses 4,837 4,477 Other current assets 615 1,321 Total prepaid expenses and other current assets $ 43,035 $ 21,416 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Jan. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 6. Goodwill and Other Intangible Assets The balance of goodwill was $59.7 million at January 30, 2021 and $77.6 million at February 1, 2020. In the first quarter of Fiscal Year 2020, the Company temporarily closed its retail locations due to COVID-19, which had a material adverse effect on our results of operations, financial position and liquidity and led to a significant decline in our net sales for the first quarter of Fiscal Year 2020, as well as an expected decline for the full Fiscal Year 2020. The Company concluded that these factors, as well as the decrease in stock price, represented indicators of impairment and required the Company to test goodwill and indefinite-lived and definite-lived intangible assets for impairment during the first quarter of Fiscal Year 2020 (the “Q1 Impairment Test”). The Company performed the Q1 Impairment Test using a quantitative approach. The Q1 Impairment Test was performed using the income approach (or discounted cash flows method) for goodwill, the relief-from-royalty method for indefinite-lived intangible assets and a recoverability analysis for definite-lived intangible assets. The estimated fair values of goodwill and indefinite-lived and definite-lived intangible assets were below their carrying values resulting in a $17.9 million impairment of goodwill, a $4.0 million impairment of the Company’s tradename (indefinite-lived intangible asset) and a $2.6 million impairment of the Company’s customer list (definite-lived intangible asset). During the third quarter of Fiscal Year 2020, the Company reduced its long-term estimates, and the Company concluded this represented an indicator of impairment and required the Company to test goodwill and indefinite-lived and definite-lived intangible assets for impairment during the third quarter of Fiscal Year 2020 (the “Q3 Impairment Test”). The Company performed the Q3 Impairment Test using a quantitative approach in the same manner as the Q1 Impairment Test discussed above. The estimated fair values of goodwill and indefinite-lived and definite-lived intangible assets were above their carrying values resulting in no further impairment. During the fourth quarter of Fiscal Year 2020, the Company finalized its Fiscal Year 2021 plan and performed its annual assessment by electing to perform a quantitative assessment (the “Q4 Impairment Test”). The Company performed the Q4 Impairment Test using a quantitative approach in the same manner as the Q1 and Q3 Impairment Tests discussed above. The estimated fair values of goodwill and definite-lived intangible assets were above their carrying values resulting in no further impairment; however, the estimated fair value of the indefinite-lived intangible asset was below its carrying value resulting in a $8.0 million impairment of the Company’s tradename. The most significant estimates and assumptions inherent in this approach are the preparation of revenue forecasts, selection of royalty and discount rates and a terminal year multiple. These assumptions are classified as Level 3 inputs. The methodology utilized for the impairment tests in Fiscal Year 2020 has not changed materially from the prior year. The key assumptions used under the income approach and relief-from-royalty method for the FYE Impairment Test included the following: • Future cash flow assumptions - The Company’s projections for its reporting units were from historical experience and assumptions regarding future revenue growth and profitability trends. The Company’s analyses incorporated an assumed period of cash flows of 5-10 years with a terminal value. • Discount rate - The discount rate was based on an estimated weighted average cost of capital (“WACC”) for each reporting unit. The components of WACC are the cost of equity and the cost of debt, each of which requires judgment by management to estimate. The Company developed its cost of equity estimate based on perceived risks and predictability of future cash flows. The WACC used to estimate the fair values of the Company’s reporting units was within a range of 21.5% to 34.0%. A 1% change in this discount rate would not result in an additional goodwill impairment charge. • Royalty rate - The royalty rates utilized consider external market evidence and internal financial metrics including a review of available returns after the consideration of property, plant and equipment, working capital and other intangible assets. The royalty rate used to estimate the available returns for the reporting units was within a range of 0.25% to 4%. The Company is at risk of future impairments in Fiscal Year 2021 if actual results differ from forecasted results or there are changes to these key assumptions used in estimating the fair value. The following table displays a rollforward of the carrying amount of goodwill from February 2, 2019 to January 30, 2021 (in thousands): Goodwill at February 2, 2019 $ 197,025 Impairment losses (119,428 ) Balance, February 1, 2020 77,597 Impairment losses (17,900 ) Balance, January 30, 2021 $ 59,697 The accumulated goodwill impairment losses as of January 30, 2021 are $137.3 million. A summary of intangible assets as of January 30, 2021 and February 1, 2020 is as follows (in thousands): Weighted Average January 30, 2021 Useful Life (Years) Gross Accumulated Amortization Accumulated Impairment Carrying Amount Indefinite-lived: Trade name N/A $ 58,100 $ — $ 24,100 $ 34,000 Definite-lived: Customer relationships 13.2 134,200 76,604 2,620 54,976 Total intangible assets $ 192,300 $ 76,604 $ 26,720 $ 88,976 Weighted Average February 1, 2020 Useful Life (Years) Gross Accumulated Amortization Accumulated Impairment Carrying Amount Indefinite-lived: Trade name N/A $ 58,100 $ — $ 12,100 $ 46,000 Definite-lived: Customer relationships 13.2 134,200 67,386 — 66,814 Total intangible assets $ 192,300 $ 67,386 $ 12,100 $ 112,814 In the second quarter of Fiscal Year 2019, the Company reduced comparable sales outlook for the second quarter that led to a reduced full year forecast of earnings for Fiscal Year 2019. The Company concluded that these factors, as well as the decrease in stock price represented indicators of impairment and required the Company to test goodwill and indefinite-lived intangible assets for impairment during the second quarter of Fiscal Year 2019 (the “Q2 FY19 Impairment Test”). The Company performed the Q2 FY19 Impairment Test using a quantitative approach with the assistance of an independent valuation firm. The Q2 FY19 Impairment Test was performed using the income approach (or discounted cash flows method) for goodwill and the relief-from-royalty method for indefinite-lived intangible assets. The estimated fair values of goodwill and indefinite-lived intangible assets were below carrying values resulting in an $88.4 million impairment of goodwill and a $7.0 million impairment of the Company’s tradename (indefinite-lived intangible asset). In addition, during the fourth quarter of Fiscal Year 2019, the Company updated sales guidance, the CEO departed and there was a decline in stock price. The Company noted that all these occurrences were an indication of a triggering event and resulted in the Company testing goodwill and indefinite lived intangible assets for impairment (the “Q4 FY19 Impairment Test”). The Company performed the Q4 FY19 Impairment Test using a quantitative approach with the assistance of an independent valuation firm. The Q4 FY19 Impairment Test was performed using the income approach (or discounted cash flows method) for goodwill and the relief-from-royalty method for indefinite-lived intangible assets. The estimated fair values of goodwill and indefinite-lived intangible asset were below the updated carrying values resulting in a $31.0 million impairment of goodwill and a $5.1 million impairment of the Company’s tradename (indefinite-lived intangible asset). Finally, the Company performed their annual impairment assessment (the “Annual Impairment Test”) after the Q4 FY19 Impairment Test was completed. The Company chose to forego the step zero impairment analysis and instead performed a quantitative impairment test . The definite-lived intangible assets are amortized over the period the Company expects to receive the related economic benefit, which for customer lists is based upon estimated future net cash inflows. The estimated useful lives of intangible assets are as follows: Asset Amortization Method Estimated Useful Life Customer lists Pattern of economic benefit 9 - 16 years Total amortization expense for these amortizable intangible assets was $9.2 million, $11.3 million, and $12.8 million for the Fiscal Years 2020, 2019, and 2018, respectively. The estimated amortization expense for each of the next five years and thereafter is as follows (in thousands): Fiscal Year Estimated Amortization Expense 2021 $ 8,264 2022 7,523 2023 6,942 2024 5,231 2025 4,693 Thereafter 22,323 Total $ 54,976 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 7. Property and Equipment Property and equipment at January 30, 2021 and February 1, 2020 consist of the following (in thousands): January 30, 2021 February 1, 2020 Leasehold improvements $ 104,831 $ 107,853 Furniture, fixtures and equipment 49,312 50,880 Computer hardware and software 54,934 51,996 Total property and equipment, gross 209,077 210,729 Accumulated depreciation (136,093 ) (106,543 ) 72,984 104,186 Construction in progress 922 3,459 Property and equipment, net $ 73,906 $ 107,645 Construction in progress is primarily comprised of leasehold improvements, furniture, fixtures and equipment related to unopened retail stores and costs incurred related to the implementation of certain computer software. Capitalized software, subject to amortization, included in property and equipment at January 30, 2021 and February 1, 2020 had a cost basis of approximately $40.8 million and $38.7 million, respectively, and accumulated amortization of $27.0 million and $20.6 million, respectively. Total depreciation expense was $24.5 million, $26.6 million, and $24.4 million, for the Fiscal Years 2020, 2019, and 2018, respectively. During Fiscal Year 2020, the Company reduced the net carrying value of leasehold improvements to their estimated fair value, which was determined using a discounted cash flows method. These impairment charges arose from the material adverse effect that COVID-19 had on our results of operations, particularly with our store fleet. The Company recognized non-cash impairment charges associated with leasehold improvements of $3.5 million and $10.8 million during the fourth quarter of Fiscal Year 2020 and Fiscal Year 2020, respectively. In the second quarter of Fiscal Year 2019, the Company reduced the net carrying value of leasehold improvements to their estimated fair value, which was determined using a discounted cash flows method. These impairment charges arose from the Company’s decision to vacate and sublease one floor of the corporate headquarters located in Quincy, Massachusetts. The Company incurred non-cash impairment charges of $0.3 million on leasehold improvements during Fiscal Year 2019. During the Fiscal Year 2018, the Company did not record any impairment charges associated with property and equipment. The Company capitalized interest in connection with construction in progress of $0.1 million, $0.3 million, and $0.4 million for the Fiscal Years 2020, 2019, 2018, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Jan. 30, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 8. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities include the following (in thousands): January 30, 2021 February 1, 2020 Accrued payroll and benefits $ 6,115 $ 4,034 Accrued returns reserve 10,676 12,822 Gift certificates redeemable 6,818 7,265 Accrued professional fees 1,399 1,673 Taxes, other than income taxes 2,362 2,594 Accrued occupancy 877 1,136 Other accrued employee costs 2,261 2,219 Other 13,346 10,969 Total accrued expenses and other current liabilities $ 43,854 $ 42,712 The following table reflects the changes in the accrued returns reserve for the Fiscal Years 2020, 2019, and 2018 (in thousands): Accrued returns reserve Beginning of Period Charged to Expenses Deductions End of Period Fiscal Year Ended February 2, 2019 $ 7,663 $ 134,887 $ (131,701 ) 10,849 Fiscal Year Ended February 1, 2020 10,849 138,355 (136,382 ) 12,822 Fiscal Year Ended January 30, 2021 12,822 81,588 (83,734 ) 10,676 |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Jan. 30, 2021 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Costs | 9. Restructuring Costs In July 2019, the Company implemented a restructuring plan (the “2019 Restructuring Plan”) focused on cost reduction initiatives designed to execute against long-term strategies. The 2019 Restructuring Plan included headcount reductions primarily at the Company’s corporate headquarters in Quincy, Massachusetts and at the facility in Tilton, New Hampshire. As a result of the 2019 Restructuring Plan, the Company recorded $1.6 million of restructuring costs in Selling, general and administrative expenses in the consolidated statements of operations and comprehensive income. All restructuring costs were recognized in the second quarter of Fiscal Year 2019 and payments were completed in the third quarter of Fiscal Year 2020, ending on October 31, 2020. The following table summarizes the activity of the restructuring costs discussed above and related accruals recorded in Accrued expenses and other current liabilities on the consolidated balance sheets (in thousands) : Program Costs to Date February 1, 2020 Cash Payments Adjustments January 30, 2021 January 30, 2021 Employee separation costs $ 216 $ 131 $ 85 $ — $ 1,402 Other 39 1 38 — 195 Total restructuring costs $ 255 $ 132 $ 123 $ — $ 1,597 |
Debt
Debt | 12 Months Ended |
Jan. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt The components of the Company’s outstanding long-term debt were as follows (in thousands): Carrying Value of Debt January 30, 2021 February 1, 2020 Term Loan (principal of $5,007 and $237,579, respectively) $ 4,904 $ 233,999 Priming Loan (principal of $229,773) 223,296 - Subordinated Facility (principal and paid-in kind interest of $15,666) 3,311 - Less: Current portion (2,799 ) (2,799 ) Net long-term debt $ 228,712 $ 231,200 On January 31, 2020, the Company made a voluntary prepayment of $5.0 million on the Term Loan. The Company recorded interest expense related to long-term debt of $15.5 million, $20.1 million, and $19.9 million, in the Fiscal Years 2020, 2019, and 2018, respectively. During the Fiscal Years 2020, 2019 and 2018, $2.3 million, $1.5 million, and $1.4 million of debt discount and debt issuance cost related to long-term debt were amortized to interest expense, respectively. As a result of COVID-19 related store closures, the Company was unable to maintain compliance with certain of its non-financial and financial covenants for the period ended May 2, 2020. Additionally, the inclusion of substantial doubt about the Company’s ability to continue as a going concern in the report of our independent registered public accounting firm on our financial statements for the fiscal year ended February 1, 2020 resulted in a violation of affirmative covenants under our ABL Facility and Term Loan. On August 31, 2020, the Company entered into the TSA with the Consenting Lenders and the Subordinated Lenders and implemented the following series of transactions: a) an amendment of the Company’s Existing Term Facility (the “Amended Existing Term Loan Agreement”, and the lenders thereunder, the “Existing Term Lenders”) to, among other things, waive any non-compliance with the terms of the Existing Term Facility; b) entry into a new senior secured priming term loan facility (the “Priming Credit Agreement”, and the lenders thereunder, the “Priming Lenders”), the proceeds of which have been used to repurchase the term loans under the Existing Term Facility (the “Existing Term Loans”) from the Consenting Lenders; c) an amendment of the Company’s existing ABL Facility, to, among other things, waive any non-compliance with the terms of the ABL Facility; and d) the provision by affiliates of our related party, TowerBrook Capital Partners L.P. (“TowerBrook”), and certain other investors of new capital pursuant to a subordinated term loan facility (the “Subordinated Facility”, and the lenders thereunder, the “Subordinated Lenders”). Term Loan On May 8, 2015, the Company entered into a Term Loan Agreement. The seven-year Term Loan Agreement provides for borrowings of $250.0 million. On May 27, 2016, the Company entered into an agreement to amend (the “Term Loan Amendment”) our Term Loan Agreement to borrow an additional $40.0 million in additional loans to permit certain dividends and to make certain adjustments to the financial covenant. The other terms and conditions of the Term Loan remained substantially unchanged. On September 30, 2020, in accordance with the TSA, the Company entered into an Amendment to the Term Loan (the “Amendment”). In connection with the Amendment, the Existing Term Lenders: (i) consented to the entry by the Company into the Priming Facility, the Subordinated Facility and the other transactions contemplated by the TSA; and (ii) permanently waived any defaults or events of default under the Existing Term Loan Agreement existing on or prior to September 30, 2020. The Amendment also eliminated substantially all of the covenants and events of default in the Existing Term Facility and provided that no guarantors of, or collateral securing, the Existing Term Loan Agreement were released. The maturity date of the Amended Existing Term Loan Agreement continues to be May 8, 2022. Additionally, in connection with the Amendment, the Company made an offer to all Existing Term Lenders to repurchase 100% of such Existing Term Lenders’ Existing Term Loans. The offer was accepted by 97.9% of the Existing Term Lenders. Loans under the Amended Existing Term Loan Agreement continue to accrue interest at LIBOR plus 5.00%, with a minimum LIBOR per annum of 1.00%, with the interest payable on a quarterly basis. The Company may alternatively elect to accrue interest at a Base Rate (as defined in the Amended Existing Term Loan Agreement) plus 4.00%. The rate per annum was 6.00 - 6.78% in Fiscal Year 2020, 6.93 – 7.75% in Fiscal Year 2019 and 6.78 - 7.53% in Fiscal Year 2018. Repayments of $0.7 million were payable quarterly until September 30, 2020. After September 30, 2020, repayments of $15 thousand are payable quarterly until maturity on May 8, 2022, when the remaining outstanding principal balance of $4.9 million is due. The exchange of Priming Loans for 97.9% of the Term Loans on September 30, 2020 was accounted for as a debt modification. As a result, 97.9% of the unamortized balance of the debt discount and issuance costs, or $2.5 million, was allocated to the Priming Loans to be included in the total debt discount and issue costs being amortized over the term of the Priming Loans. At September 30, 2020, an unamortized balance of debt discount and issuance costs of $55 thousand continued to be allocated to the Term Loans and continue to be amortized over the remaining term through May 8, 2022. These fees are presented as a direct reduction from the carrying amount of long-term debt on the consolidated balance sheets. Borrowings under the Term Loan Agreement are collateralized by all of the assets of the Company. In connection with the Term Loan Agreement, the Company is subject to various financial reporting, financial and other covenants, including maintaining specific liquidity measurements. Affirmative covenants include providing timely quarterly and annual financial statements and prompt notification of the occurrence of any event of default or any other event, change or circumstance that has had, or could reasonably be expected to have, a material adverse effect as defined in the Term Loan Agreement. In addition, there are negative covenants, including certain restrictions on the Company’s ability to: incur additional indebtedness, create liens, enter into transactions with affiliates, transfer assets, pay dividends, consolidate or merge with other entities, undergo a change in control, make advances, investments and loans, or modify its organizational documents. As discussed above, the Company was not in compliance with all the Term Loan financial covenants during Fiscal Year 2020 until the Amendment discussed above permanently waived any defaults or events of default existing on or prior to September 30, 2020. As of January 30, 2021 and February 1, 2020, the Company was in compliance with all financial covenants in effect. Priming Loan On September 30, 2020, in accordance with the TSA, the Company entered into the Priming Credit Agreement, which provided for a secured term loan facility, which has an aggregate principal amount equal to $229.8 million at January 31, 2021. The Priming Loans were exchanged for 97.9% of the Existing Term Loans in connection with the Amendment discussed above. The Company incurred $1.2 million of debt issuance costs in connection with the Priming Credit Agreement. These costs are presented as a direct reduction from the carrying amount of long-term debt on the consolidated balance sheets. The maturity date of the Priming Credit Agreement is May 8, 2024, and the loans under the Priming Credit Agreement will bear interest at the Company’s election at: (1) Base Rate (as defined in the Priming Credit Agreement) plus 4.00% or (2) LIBOR plus 5.00%, with a minimum LIBOR per annum of 1.00%, with the interest payable on a quarterly basis. The Priming Credit Agreement requires a principal paydown of at least $25.0 million by August 30, 2021; otherwise, there will be a paid-in-kind (“PIK”) interest rate increase and a PIK fee as follows: • If the principal paydown is less than $15.0 million, the PIK interest rate increase will be 5.00%, and the PIK fee will be 7.50%; • If the principal paydown is greater than $15.0 million, but less than $20.0 million, the PIK interest rate increase will be 2.00% and the PIK fee will be 5.00%; or • If the principal paydown is greater than $20.0 million, but less than $25.0 million, the PIK interest rate increase will be 1.00% and the PIK fee will be 2.00%. The Company’s obligations under the Priming Credit Agreement are secured by substantially all of the real and personal property of the Company and certain of its subsidiaries, subject to certain customary exceptions. The Priming Credit Agreement includes customary negative covenants, including covenants limiting the ability of the Company to, among other things, incur additional indebtedness, create liens on assets, make investments, loans or advances, engage in mergers, consolidations, sales of assets and purchases, pay dividends and distributions, enter into transactions with affiliates, and make payments in respect of junior indebtedness. The Priming Credit Agreement also has certain financial covenants, including (1) a minimum liquidity covenant that generally requires minimum liquidity on a weekly basis of $15.0 million, (2) a first lien net leverage ratio that requires compliance beginning in the fourth quarter of Fiscal Year 2021 with a net leverage ratio of 5:1, which reduces over time, and (3) limits on capital expenditures of $20.0 million annually. In accordance with the Priming Credit Agreement, the Company issued to the Priming Lenders 656,717 shares, as adjusted for the Company’s 1-for-5 stock split that occurred during the fourth quarter of Fiscal 2020, of the Company’s Common Stock (the “Equity Consideration”). We recorded the issuance of shares valued at $2.0 million as equity with the offset as a reduction of the carrying value of the debt. On May 31, 2021, the Company will have the choice (the “May 31, 2021 Option”) to either (i) repay $4.9 million in aggregate principal amount of the loans under the Priming Credit Agreement, together with accrued and unpaid interest thereon or (ii) issue additional shares of Common Stock to the Priming Lenders in an amount equal to the greater of (I) 9.79% of the fully diluted shares of Common Stock as of October 1, 2020 less 656,717 shares and (II) a number of shares of Common Stock with an aggregate value of $0.5 million at the time of such issuance; provided, that the Priming Lenders shall not receive on such date shares of Common Stock having a value greater than $4.75 million at the time of such issuance. The May 31, 2021 Option was considered an embedded derivative within the Priming Loan. The Company determined the fair value of the May 31, 2021 Option was $1.4 million at the date of the Transaction, which was recorded within Derivative liability with the offset as a reduction in the carrying value of the debt on the consolidated balance sheets. The fair value of the May 31, 2021 Option was determined using an option pricing model with a Monte Carlo simulation. The difference between the carrying value of the Priming Loan and the principal amount will be accreted over the term of the debt using the effective interest method. The May 31, 2021 Option was remeasured to its fair value as of the end of Fiscal Year 2020, with a charge of $1.0 million being recorded within Fair value adjustment of derivative in the consolidated statements of operations and comprehensive income for Fiscal Year 2020. Subordinated Facility On September 30, 2020, in accordance with the TSA, the Company entered into a Subordinated Facility, with the Subordinated Lenders, that provides for a secured term loan facility in an aggregate principal amount equal to $15.0 million with an additional incremental capacity subject to certain customary conditions. The Subordinated Lenders are a group of related that includes certain affiliates of TowerBrook and our Chairman of the board of directors. The proceeds of the Subordinated Facility have been used for general corporate purposes. The Company incurred $0.4 million of debt discount costs in connection with the Subordinated Facility. This discount is presented as a direct reduction from the carrying amount of Long-term debt on the consolidated balance sheets. The maturity date of the Subordinated Facility is November 8, 2024. Loans under the Subordinated Facility will bear interest at the Borrower’s election at (1) Base Rate (as defined in the Subordinated Facility) plus 11.00% or (2) LIBOR plus 12.00%, with a minimum LIBOR per annum of 1.00%. The Subordinated Facility is secured by substantially all of the real and personal property of the Company. The Subordinated Facility includes customary negative covenants for subordinated term loan agreements of this type, including covenants limiting the ability of the Company to, among other things, incur additional indebtedness, create liens on assets, make investments, loans or advances, engage in mergers, consolidations, sales of assets and purchases, pay dividends and distributions, enter into transactions with affiliates, and make payments in respect of junior indebtedness. The Subordinated Facility also has certain financial covenants, including (1) a minimum liquidity covenant that generally requires minimum liquidity on a weekly basis of $12.75 million, (2) a first lien net leverage ratio that requires compliance beginning in the fourth quarter of Fiscal Year 2021 with a net leverage ratio of 5.75:1, which reduces over time, and (3) limits on capital spending of $23.0 million annually. In accordance with the Subordinated Facility, the Company issued penny warrants to the Subordinated Lenders, which, upon exercise, would grant the Subordinated Lenders 3,720,109 shares, as adjusted for the Company’s 1-for-5 stock split that occurred during the fourth quarter of Fiscal Year 2020, of common stock of the Company. The terms of the warrants include antidilution provisions, including a change to the conversion ratio if the Company chooses to issue additional shares to the Priming Lenders on May 31, 2021 rather than making a principal payment of $4.9 million. We recorded a reduction to the carrying value of the subordinated debt of $11.8 million due to the issuance of the penny warrants As a result of the antidilution provisions, the penny warrants have been recognized as Warrants – related party, rather than equity, on the consolidated balance sheets and were remeasured to their fair value as of the end of Fiscal 2020, with a charge of $4.2 million being recorded within Fair value adjustment of warrants – related party in the consolidated statements of operations and comprehensive income for Fiscal Year 2020. The difference between the carrying value of the Subordinated Facility and the principal amount will be accreted over the term of the debt using the effective interest method. Asset-Based Revolving Credit Agreement On May 8, 2015, the Company entered into a five-year secured $40.0 million asset-based revolving credit facility agreement (the “ABL Facility”). The ABL Facility had an initial maturity of May 8, 2020. On June 12, 2019, this ABL Facility was amended to extend the termination date to May 8, 2023. On September 30, 2020, in accordance with the TSA, the Company entered into an amendment to the ABL Facility, whereby the ABL lenders (i) consented to the Company’s entry into the Priming Facility, the Subordinated Facility and other transactions contemplated by the TSA and (ii) permanently waived any defaults or events of default under the ABL Facility on or prior to September 30, 2020. Under the terms of this agreement, the ABL Facility provides for borrowings up to (i) 90% of eligible credit card receivables, plus (ii) 85% of eligible accounts receivable, plus (iii) the lesser of (a) 100% of the value of eligible inventory at such time and (b) 90% of the net orderly liquidation value of eligible inventory at such time, plus (iv) the lesser of (a) 100% of the value of eligible in-transit inventory at such time, (b) 90% of the net orderly liquidation value of eligible in-transit inventory at such time and (c) the in-transit maximum amount (the in-transit maximum amount is not to exceed $9.5 million during the first and third calendar quarters and $7.0 million during the second and fourth calendar quarters), less (v) certain reserves established by the lender, as defined in the ABL Facility. The ABL Facility consists of revolving loans and swing line loans. Borrowings classified as revolving loans under the ABL Facility may be maintained as either LIBOR or Base Rate loans, each of which has a variable interest rate plus an applicable margin. Borrowings classified as swing line loans under the ABL Facility are Base Rate loans. LIBOR loans under the ABL Facility accrue interest at a rate equal to LIBOR plus a spread of 2.00% from May 8, 2015 to August 31, 2015, and thereafter ranging from 2.25% to 2.50%, depending on borrowing amounts. Base Rate loans under the ABL Facility accrue interest at a rate equal to (i) the greatest of (a) the financial institution’s prime rate, (b) the overnight Federal Funds Effective Rate plus 0.50%, (c) LIBOR plus 1.00%, and (d) 2.00%, plus (ii) a spread of 1.00% from May 8, 2015 to August 31, 2015, and thereafter ranging from 1.25% to 1.50%, depending on borrowing amounts. Interest on each LIBOR loan is payable on the last day of each interest period and no more than quarterly, and interest on each Base Rate loan is payable in arrears on the last business day of April, July, October and January. For both LIBOR and Base Rate loans, interest is payable periodically upon repayment, conversion or maturity, with interest periods ranging between 30 to 180 days at the election of the Company, or 12 months with the consent of all lenders. The ABL Facility also requires the quarterly payment, in arrears, of a commitment fee. The commitment fee is payable in an amount equal to 0.375% from May 8, 2015 to July 1, 2016, and thereafter at an amount equal to (i) 0.375% for each calendar quarter during which historical excess availability is greater than 50% of availability, and (ii) 0.25% for each calendar quarter during which historical excess availability is less than or equal to 50% of availability. The Company had short-term borrowings of $11.1 million under the Company’s ABL Facility as of January 30, 2021. During the fiscal year ended February 1, 2020, there were no amounts drawn or outstanding under the ABL Facility. Based on the terms of the agreement and the increase for the letters of credit, the Company’s available borrowing capacity under the ABL Facility as of January 30, 2021 and February 1, 2020 was $23.8 million and $38.3 million, respectively. The Company recorded interest expense related to the ABL Facility of $0.8 million in Fiscal Year 2020. In the Fiscal Years 2020, 2019, and 2018, $0.1 million, $0.2 million, and $0.2 million, respectively, of the debt issuance cost related to the ABL Facility were amortized to interest expense. Borrowings under the ABL Facility are secured by a first lien on accounts receivable and inventory. In connection with the ABL Facility, the Company is subject to various financial reporting, financial and other covenants, including maintaining specific liquidity measurements. Affirmative covenants include providing timely quarterly and annual financial statements and prompt notification of the occurrence of any event of default or any other event, change or circumstance that has had, or could reasonably be expected to have, a material adverse effect as defined in the ABL Facility. In addition, there are negative covenants, including certain restrictions on the Company’s ability to: incur additional indebtedness, create liens, enter into transactions with affiliates, transfer assets, pay dividends, consolidate or merge with other entities, undergo a change in control, make advances, investments and loans or modify its organizational documents. As discussed above, the Company was not in compliance with all the ABL Facility financial covenants during Fiscal Year 2020 until the Amendment discussed above permanently waived any defaults or events of default existing on or prior to September 30, 2020. As of January 30, 2021 and February 1, 2020, the Company was in compliance with all financial covenants. If an event of default (as defined in the applicable facility) occurs under the Priming Credit Agreement, Amended Existing Term Loan, ABL Facility or Subordinated Facility, the Company’s obligations under the applicable facility may be accelerated. In addition, a 2.00% interest surcharge will be imposed on overdue amounts under these facilities. Letters of Credit As of January 30, 2021 and February 1, 2020, there were outstanding letters of credit of $2.9 million and $1.7 million, respectively, which reduced the availability under the ABL Facility. As of January 30, 2021, the maximum commitment for letters of credit was $10.0 million. Letters of credit accrue interest at a rate equal to the applicable margin with respect to revolving loans maintained as LIBOR loans under the ABL facility. The Company primarily used letters of credit to secure payment of workers’ compensation claims. Letters of credit are generally obtained for a one-year term and automatically renew annually, and would only be drawn upon if the Company fails to comply with its contractual obligations. Payments of Long-term Debt Obligations Due by Period As of January 30, 2021, minimum future principal amounts payable under the Company’s outstanding long-term debt are as follows (in thousands): Fiscal Year Term Loan Priming Loan Subordinated Facility Total 2021 $ 60 $ 2,739 $ - $ 2,799 2022 4,947 2,739 - 7,686 2023 - 2,739 - 2,739 2024 - 221,556 15,000 236,556 Total $ 5,007 $ 229,773 $ 15,000 $ 249,780 The minimum future principal payments in the table above do not include the payment of PIK interest and PIK fees. The Subordinated Facility requires a $10.6 million payment of PIK interest at maturity in Fiscal Year 2024. If the Company were to make the minimum principal payments on the Priming Loan as presented in the table above, the Company would be required to make a $52.3 million payment for PIK fees and PIK interest at maturity in Fiscal Year 2024; however, the Company expects to make a principal payment of at least $25.0 million by August 30, 2021 to avoid making any payments for PIK fees or PIK interest on the Priming Loan. The Company anticipates using the proceeds from its expected tax refund to fund the $25.0 million principal payment. The amounts outstanding under the ABL Facility must be repaid before the maturity date of May 8, 2023 and are not included in the table above. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 11. Fair Value Measurements Certain assets and liabilities are carried at fair value in accordance with GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets; quoted prices for similar assets or liabilities in markets that are not active; or other inputs other than quoted prices that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities, including interest rates and yield curves, and market corroborated inputs. • Level 3 - Unobservable inputs for the asset or liability that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These are valued based on management’s estimates and assumptions that market participants would use in pricing the asset or liability. Fair Value Carrying Value Level 1 Level 2 Level 3 Recurring fair value measurements Warrants $ 15,997 $ - $ 15,997 $ - Derivative liability 2,436 - 2,436 - Total recurring fair value measurements $ 18,433 $ - $ 18,433 $ - Financial instruments not carried at fair value Total debt $ 231,511 $ - $ 220,010 $ - Total financial instruments not carried at fair value $ 231,511 $ - $ 220,010 $ - As of February 1, 2020, the Company had no assets or liabilities that were measured at fair value on a recurring basis. The fair value of the Company’s debt, as measured through the level 2 measurements, was approximately $200.5 million at February 1, 2020. The Company determines the fair value of its financial assets and liabilities using the following methodologies: • Warrants - The fair value of the Penny Warrants is determined based on a pricing model that uses share prices from actively quoted stock markets that are readily accessible and observable. • Derivative Liability - The fair value of the May 21, 2021 Option was determined using an option pricing model with a Monte Carlo simulation. • Debt - These debt instruments include the Term Loan, Priming Loan and Subordinated Facility. The debt instruments are recorded at cost, net of debt issuance costs and any related discount. The fair value of the debt instruments is obtained based on observable market prices quoted on public exchanges for similar instruments. The methodology used by the Company to determine the fair value of its financial assets and liabilities at January 30, 2021, is the same as that used at February 1, 2020. The Company believes that the carrying amounts of its other financial instruments, including cash, accounts receivable, accounts payable and any amounts drawn on its revolving credit facilities, consisting primarily of instruments without extended maturities, based on management’s estimates, approximates their fair value due to the short-term maturities of these instruments. Assets and Liabilities with Recurring Fair Value Measurements - Certain assets and liabilities may be measured at fair value on an ongoing basis. We did not elect to apply the fair value option for recording financial assets and financial liabilities. Other than the warrants and derivative liability, we do not have any assets or liabilities which we measure at fair value on a recurring basis. Assets and Liabilities with Nonrecurring Fair Value Measurements - Certain assets and liabilities are not measured at fair value on an ongoing basis. These assets and liabilities, which include long-lived assets, goodwill, and intangible assets, are subject to fair value adjustment in certain circumstances. From time to time, the fair value is determined on these assets as part of related impairment tests. Other than impairment accounting adjustments, no adjustments to fair value or fair value measurements were required for non-financial assets and liabilities for all periods presented. See Note 6, , for additional information. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Legal Proceedings The Company is subject to various legal proceedings that arise in the ordinary course of business. Although the outcome of such proceedings cannot be predicted with certainty, management does not believe that the Company is presently party to any legal proceedings the resolution of which management believes would have a material adverse effect on the Company’s business, financial condition, operating results or cash flows. The Company establishes reserves for specific legal matters when the Company determines that the likelihood of an unfavorable outcome is probable, and the loss is reasonably estimable. Concentration Risk An adverse change in the Company’s relationships with its key suppliers, or loss of the supply of one of the Company’s key products for any reason, could have a material effect on the business and results of operations of the Company. One supplier accounted for approximately 11.1% of the Company’s purchases during Fiscal Year 2020. There are many potential suppliers in the industry that could become a supplier if we were to lose one of our large suppliers. Other Commitments The Company enters into other cancelable and noncancelable commitments. Typically, these commitments are for less than one year in duration and are principally for the procurement of inventory. Preliminary commitments with the Company’s merchandise vendors are made approximately six months in advance of the planned receipt date. |
Operating Leases
Operating Leases | 12 Months Ended |
Jan. 30, 2021 | |
Leases [Abstract] | |
Operating Leases | 13. Operating Leases As of January 30, 2021, the Company leased certain retail stores, a distribution center, and office space. As of that same date, the Company did not have any financing leases and no operating leases contained any material residual value guarantees or material restrictive covenants. Certain of the Company’s retail operating leases include variable rental payments based on a percentage of retail sales over contractual levels and month-to-month leases. Some retail leases include one or more options to renew, with renewal terms that can extend the lease term from one to fifteen years. The Company’s distribution center has renewal terms that can extend the lease term up to twenty years. The exercise of lease renewal options is at the Company’s sole discretion. As of January 30, 2021, the Company included options to renew that are reasonably certain to be exercised in the operating lease assets and liabilities. As described in Note 3, the Company adopted Topic 842 as of February 3, 2019. Under this guidance the Company did not record any deferred lease liabilities as of January 30, 2021. The Company maintained a tenant incentive liability of $1.2 million and $1.2 million as of January 30, 2021 and February 1, 2020, respectively, related to certain variable retail leases. The components of lease expense were as follows (in thousands): Lease Cost Classification For the Fiscal Year Ended January 30, 2021 For the Fiscal Year Ended February 1, 2020 Operating lease cost SG&A Expenses $ 43,824 $ 47,482 Variable lease cost SG&A Expenses 1,340 3,434 Total lease cost $ 45,164 $ 50,916 During Fiscal Year 2020, the Company reduced the net carrying value of right-of-use assets to their estimated fair value, which was determined using a discounted cash flows method. These impairment charges arose from the material adverse effect that COVID-19 had on our results of operations, particularly with our store fleet. The Company recognized non-cash impairment charges associated with right-of-use assets of $2.8 million and $23.0 million, during the fourth quarter of Fiscal Year 2020 and Fiscal Year 2020, respectively. During Fiscal Year 2019, the Company recognized non-cash impairment charges of $2.0 million associated with right-of-use assets. As a result of COVID-19 related temporary store closures, the Company withheld rent payments for all of its retail locations in April and May 2020 and for some of its retail locations in June 2020. The Company successfully negotiated commercially reasonable lease concessions with the landlords for substantially all of our leases by January 30, 2021, which include combinations of abated and deferred rent payments as well as term extensions. The Company is actively negotiating with the landlords of its other leases, and the withheld rent payments for such leases amounted to approximately $1.9 million as of January 30, 2021, which we have included in Accrued expenses and other current liabilities on the consolidated balance sheets. The Company does not anticipate any significant late payment penalties; therefore, we have not accrued any related expenses as of January 30, 2021. The Company has elected to apply the guidance provided by the FASB pertaining to lease concessions that are a result of COVID-19 and accordingly does not evaluate the rights and obligations pertaining to concessions in each lease but rather accounts for them assuming that such provisions exist. For each lease that contains concessions that do not significantly increase our obligations, the Company has remeasured the lease consistent with resolving a contingency and therefore adjusted the timing and amount of the lease payments without changing our assumptions (i.e. discount rate and lease classification). The concessions within the qualifying agreements vary and may include combinations of abated and deferred rent payments as well as term extensions ranging from one to six months. During Fiscal Year 2020, the Company’s qualifying agreements provided abated rent payments of $7.4 million and deferred rent payments of $2.9 million that are payable over no more than 18 months and began as early as August 2020. For the fiscal years ended January 30, 2021 and February 1, 2020, total common area maintenance expense was $14.2 million and $14.4 million, respectively. For the fiscal year ended February 2, 2019, total rental expense was $46.5 million, and common area maintenance expense was $14.1 million, exclusive of contingent rental expense recorded of $2.2 million. For the fiscal year ended January 30, 2021, operating lease liabilities decreased $0.8 million, net primarily due to lease terminations and remeasurements offset by leases accounted for under ASC 842 for the first time and COVID-related lease modifications noted above. For the fiscal year ended February 1, 2020, operating lease liabilities arising from obtaining operating lease assets were $21.0 million. For the fiscal years ended January 30, 2021 and February 1, 2020, the total cash paid for amounts included in the measurement of operating lease liabilities was $40.1 million and $48.0 million, respectively. The Company used an incremental borrowing rate on February 3, 2019, for operating leases that commenced prior to that date. The incremental borrowing rate is estimated based upon (1) the financial condition and credit rating of the Company and its peers, (2) the term of the lease, (3) the nature of the underlying asset, and (4) the relative economic environment. Lease Term and Discount Rate January 30, 2021 February 1, 2020 Weighted-average remaining lease term (in years) Operating leases 6.5 7.2 Weighted-average discount rate Operating leases 6.6 % 6.5 % Maturities of lease liabilities as of January 30, 2021 were as follows (in thousands): Fiscal Year Operating Leases ( 1) 2021 $ 46,752 2022 44,001 2023 41,240 2024 35,959 2025 30,799 Thereafter 69,788 Less: Imputed interest 51,550 Present value of lease liabilities $ 216,989 (1) There were no operating leases with legally binding minimum lease payments for leases signed but for which the Company has not taken possession. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes The (benefit) provision for income taxes for the Fiscal Years 2020, 2019, and 2018 consists of the following (in thousands): For the Fiscal Year Ended January 30, 2021 For the Fiscal Year Ended February 1, 2020 For the Fiscal Year Ended February 2, 2019 Current U.S. Federal $ (30,304 ) $ 5,636 $ 11,634 State and local (659 ) 2,165 4,334 Total current (30,963 ) 7,801 15,968 Deferred tax benefit U.S. Federal (13,922 ) (8,681 ) (3,513 ) State and local (3,277 ) (2,142 ) (806 ) Total deferred tax benefit (17,199 ) (10,823 ) (4,319 ) Total income tax (benefit) provision $ (48,162 ) $ (3,022 ) $ 11,649 The effective tax rate for the fiscal year ended January 30, 2021 differs from the federal statutory rate of 21% primarily due to the impact of the realized benefit from the CARES Act as well as state and local income taxes. The CARES Act allows net operating losses generated in fiscal year 2020 to be carried back five years to years with higher tax rates than the current year. These benefits were partially offset by the impact on the effective tax rate from goodwill impairment, which has no associated tax benefit, and valuation allowance. A reconciliation of the federal statutory income tax rate to the Company’s effective tax rate is as follows for the periods presented: For the Fiscal Year Ended January 30, 2021 For the Fiscal Year Ended February 1, 2020 For the Fiscal Year Ended February 2, 2019 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax effect 4.9 % 0.3 % 6.3 % Goodwill impairment (2.0 )% (19.1 )% 0.0 % Net operating loss CARES ACT benefit 5.7 % 0.0 % 0.0 % Valuation allowance (2.9 )% 0.0 % 0.0 % Nondeductible equity-based compensation expense (0.2 )% 0.1 % 0.3 % Charitable contributions 0.1 % 0.1 % (0.6 )% Tax return to provision adjustments 0.0 % 0.0 % 0.1 % Other (0.9 )% (0.1 )% 0.5 % Effective tax rate 25.7 % 2.3 % 27.6 % The components of deferred tax assets (liabilities) were as follows (in thousands): January 30, 2021 February 1, 2020 Deferred tax assets Accrued expenses $ 7,984 $ 5,384 State net operating loss carryforward 4,621 — Start-up costs 539 618 Lease liabilities 58,768 64,068 Total deferred tax assets, gross 71,912 70,070 Less: Deferred tax valuation allowances (5,472 ) — Total deferred tax assets net of valuation allowances 66,440 70,070 Deferred tax liabilities Inventory (1,930 ) (2,496 ) Lease assets (42,785 ) (54,721 ) Fixed assets (11,748 ) (15,341 ) Intangible assets (22,148 ) (27,826 ) Debt issuance costs (415 ) — Prepaid expenses (1,249 ) (720 ) Total deferred tax liabilities (80,275 ) (101,104 ) Net deferred tax liabilities $ (13,835 ) $ (31,034 ) Deferred tax assets and deferred tax liabilities are recognized based on temporary differences between the financial reporting and tax bases of assets and liabilities using statutory rates. Management of the Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets and concluded that it is more likely than not that the Company will not recognize part of the state deductible differences and net operating losses. Accordingly, a valuation allowance has been established against the Company’s state deferred tax assets as of January 30, 2021. Among the changes to the U.S. federal income tax rules, the CARES Act modified net operating loss carryback rules that were eliminated by the 2017 Tax Cuts and Jobs Act by allowing net operating carryback for tax years beginning after December 31, 2017, and before January 1, 2021, restored 100% bonus depreciation for qualified improvement property, increased the limit on the deduction for net interest expense and accelerated the time frame for refunds of alternative minimum tax credits. As of January 30, 2021, the Company does not have a federal net operating loss carryforward as the loss generated in current year is being carried back to prior tax periods. The Company does have $5.9 million of state net operating loss benefit, of which a majority expire at various dates between 2031-2041. The Company had no federal or state tax credit carryforwards as of January 30, 2021 and February 1, 2020. As of January 30, 2021, the Company had $0.3 million of unrecognized tax benefits. The Company did not have any unrecognized tax benefits as of February 1, 2020. The Company’s policy for classifying interest and penalties associated with unrecognized income tax benefits is to include such items in the provision for income tax. Additions related to the unrecognized tax benefits were $0.3 million for Fiscal Year 2020. The Company is currently under IRS audit for the period ending February 3, 2018. For federal and state income tax purposes, the Company’s tax years remain open under statute for Fiscal Year 2017 to present. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 15. Earnings Per Share The following table summarizes the computation of basic and diluted net income per common share for the Fiscal Years 2020, 2019, and 2018 (in thousands, except share and per share data): For the Fiscal Year Ended January 30, 2021 For the Fiscal Year Ended February 1, 2020 For the Fiscal Year Ended February 2, 2019 Numerator Net (loss) income attributable to common shareholders: $ (139,404 ) $ (128,567 ) $ 30,525 Denominator Weighted average number of common shares outstanding, basic: 9,159,686 8,749,865 8,554,263 Dilutive effect of stock options and restricted shares: — — 293,687 Weighted average number of common shares outstanding, diluted: 9,159,686 8,749,865 8,847,950 Net (loss) income per common share attributable to common shareholders, basic: $ (15.22 ) $ (14.69 ) $ 3.57 Net (loss) income per common share attributable to common shareholders, diluted: $ (15.22 ) $ (14.69 ) $ 3.45 The weighted average common shares for the diluted earnings per share calculation exclude the impact of outstanding equity awards if the assumed proceeds per share of the award is in excess of the related fiscal period’s average price of the Company’s common stock. Such awards are excluded because they would have an anti-dilutive effect. Additionally, equity compensation awards have been excluded when they have an antidilutive effect, such as when the Company has a net loss for the reporting period, which is the case for Fiscal Years 2020 and 2019. There were 459,452 and 605,055 and 184,485 such awards excluded for the Fiscal Years 2020, 2019 and 2018, respectively. The 3,720,109 penny warrants that were issued during the third quarter of Fiscal Year 2020 were excluded from the calculation of earnings per share for Fiscal Year 2020 because the effect of including them would have been antidilutive. Additionally, the potential shares issued under the May 31, 2021 Option and related share impact on penny warrants due to the antidilution provisions, were also excluded from the calculation of earnings per share for Fiscal Year 2020 because the effect of including them would have been antidilutive. On November 4, 2020, the Company announced a 1-for-5 reverse stock split effective November 9, 2020. The Company’s shareholders received one share for every five shares held prior to the effective date. The Company adjusted the computations of basic and diluted EPS retroactively for all periods presented to reflect the change in capital structure. |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Jan. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation | 16. Equity-Based Compensation During Fiscal Year 2017, at the time of the Company’s IPO, the total issued unvested common interests under the Incentive Equity Plan (the “Plan”) were converted to 477,000 restricted share awards (“RSAs”) under the Plan. The RSAs granted employees of the Company are classified as equity awards and are generally subject to a five-year vesting period, with either a monthly or annual cliff vest. During Fiscal Years 2020, 2019 and 2018, there were RSAs forfeited of 661 shares, 33,754 shares and 28,508 shares, respectively. In conjunction with the IPO, on March 9, 2017, the Company established the J.Jill, Inc. Omnibus Equity Incentive Plan (the “2017 Plan”), which reserves common stock for issuance upon exercise of options, or in respect of granted awards. The 2017 Plan is administered by the Compensation Committee of the Board of Directors (the “Committee”). The Committee has the authority to determine the type, size and terms and conditions of awards to be granted and to grant such awards. During Fiscal Years 2020, 2019 and 2018, the Committee granted RSUs under the 2017 Plan, which vest 25% each year, over four years from the grant date. The grant-date fair value of RSUs is recognized as expense on a straight-line basis over the requisite service period, which is generally the vesting period. The fair market value of RSUs is determined based on the market price of the Company’s shares on the date of the grant. The Committee approved employment inducement awards, granting 60,529 RSUs during Fiscal Year 2019 and 167,008 RSUs and 159,374 non-qualified stock options during Fiscal Year 2018. The following table summarizes restricted stock activity during Fiscal Years 2020, 2019 and 2018 inclusive of inducement awards: Number of Units Weighted- Average Grant Date Fair Value Unvested units outstanding at February 3, 2018 353,558 $ 3.25 Granted 498,109 23.95 Vested (220,079 ) 4.10 Forfeited (54,908 ) 12.75 Unvested units outstanding at February 2, 2019 576,680 $ 16.05 Granted 486,296 20.90 Vested (247,768 ) 20.40 Forfeited (326,136 ) 22.87 Unvested units outstanding at February 1, 2020 489,072 $ 12.74 Granted 168,421 2.75 Vested (188,764 ) 16.69 Forfeited (79,443 ) 16.94 Unvested units outstanding at January 30, 2021 389,286 $ 13.81 As of January 30, 2021, there was $3.4 million of total unrecognized compensation expense related to unvested restricted stock, which is expected to be recognized over a weighted-average service period of 2.3 years. The weighted-average grant date fair value per share of restricted stock granted during Fiscal Years 2020, 2019, and 2018, was $2.75, $20.90, and $23.95, respectively. The total fair value of restricted stock vested during Fiscal Years 2020, 2019, and 2018 was $3.2 million, $5.1 million, and $0.9 million, respectively. The 2017 Plan has 913,453 shares of common stock reserved for issuance to awards granted by the Committee. As of January 30, 2021, there were an aggregate of 329,206 shares authorized and available for future issuance. During Fiscal Years 2018 and 2017, the Committee granted stock options under the 2017 Plan. Stock options are granted to purchase ordinary shares at prices as determined by the Committee, but in no event shall the exercise price be less than the fair market value of the common stock at the time of grant. Options generally vest in equal installments over a four-year period. Options expire not more than 10 years from the date of grant. The grant date fair value of options is recognized as an expense on a straight-line basis over the requisite service period, which is generally the vesting period. Forfeitures are recorded as incurred. The following table summarizes stock option activity during Fiscal Years 2020, 2019 and 2018, inclusive of inducement awards: Number of Units Weighted- Average Grant Date Fair Value Weighted- Average Exercise Price Weighted- Average Remaining Contractual Terms Aggregate- Intrinsic Value ( 1) (years) (thousands) Units outstanding at February 3, 2018 53,023 $ 30.25 $ 66.30 - $ — Granted 159,374 11.00 24.50 Forfeited (2,487 ) 30.15 65.60 Units outstanding at February 2, 2019 209,910 $ 15.65 $ 34.55 9.0 $ 749.1 Forfeited (189,019 ) 14.04 25.39 — — Options outstanding at February 1, 2020 20,891 $ 30.16 $ 59.85 7.3 $ — Forfeited (1,990 ) 30.16 59.85 — — Options outstanding at January 30, 2021 18,901 $ 30.15 $ 59.85 6.3 $ — Options exercisable at January 30, 2021 14,176 $ 30.15 $ 59.85 6.3 $ — (1) The intrinsic value is the amount by which the market price at the end of the period of the underlying share of stock exceeds the exercise price of the stock option. As of January 30, 2021, there was less than $0.1 million of unrecognized compensation cost related to non-vested stock options. This cost is expected to be recognized over a weighted average period of 0.3 years. There were no stock options granted during Fiscal Years 2020 and 2019. The weighted-average grant date fair value per share of stock options granted during Fiscal Year 2018 was $11.00. The Company historically had been a private company and lacked certain company-specific historical and implied volatility information when the stock options were granted. Therefore, the Company estimated its expected share volatility based on the historical volatility of a publicly traded group of peer companies. Due to the lack of relevant historical data, the simplified approach was used to determine the expected term of the options. The risk-free rate was determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield for options granted in Fiscal Year 2018 was based on the fact that the Company had not paid any cash dividends as of February 2, 2019. The fair values of options are estimated using the Black-Scholes option-pricing model with the following assumptions: February 2, 2019 Risk-free rate 2.14% Expected term (in years) 6.25 Expected volatility 41.81% Expected dividend yield 0.00% The Company established an Employee Stock Purchase Plan (the “Purchase Plan”) during Fiscal Year 2017, under which a maximum of 40,000 shares of common stock may be purchased by eligible employees as defined by the Purchase Plan. As of January 30, 2021 and February 1, 2020, there were 2,344 shares authorized and available for future issuance under the Purchase Plan. During Fiscal Year 2020, the Purchase Plan was suspended due to an inadequate number of authorized and available shares. The Purchase Plan provides for one “purchase period” each year, commencing on January 1 of each year and continuing through December 31. Shares are purchased through an accumulation of payroll deductions (no more than 10% of compensation, as defined) for the number of whole shares determined by dividing the balance in the employee’s account on the last day of the purchase period by the purchase price per share for the stock determined under the Purchase Plan. The purchase price for shares is the lower of 85% of the fair market value of the common stock at the beginning of the purchase period, or 85% of such value at the end of the purchase period. The fair value of shares purchased under the Purchase Plan are estimated using the Black-Scholes option-pricing model with the following assumptions: February 1, 2020 February 2, 2019 Risk-free rate 1.59% 2.63% Expected term (in years) 1.00 1.00 Expected volatility 45.11% 42.54% Expected dividend yield 0.00% 0.00% The weighted average grant date fair value of the one-year option inherent in the Purchase Plan was approximately $1.90 and $8.70 during the Fiscal Years 2019 and 2018, respectively. During Fiscal Year 2019, the Company recognized $0.1 million of proceeds from 27,886 purchases of common stock through the Purchase Plan. Equity-based compensation expense for all award types of $2.1 million, $4.6 million, and $4.0 million was recorded as a Selling, general and administrative expenses in the consolidated statements of operations and comprehensive income during the Fiscal Years 2020, 2019, and 2018, respectively. Special Dividend On March 6, 2019, the Company’s Board of Directors declared a special cash dividend (the “Special Dividend”) of $5.75 per share payable to shareholders of record as of March 19, 2019, of which $50.2 million was paid on April 1, 2019 to shareholders. In connection with the Special Dividend, pursuant to anti-dilution provisions in the 2017 Omnibus Equity Incentive Plan (the “2017 Plan”), the Company adjusted outstanding equity awards in order to prevent dilution of such awards. Accordingly, the Company adjusted the number of outstanding unvested restricted stock units (“RSUs”) as of the payment date of the dividend with an additional number of RSUs (“Dividend Equivalent Units” or “DEUs”) equal to the quotient obtained by dividing (x) (y) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 17. Related Party Transactions On September 30, 2020, the Company entered into the Subordinated Facility, with a group of lenders that includes certain affiliates of TowerBrook and our Chairman of the board of directors. the Company issued penny warrants to the Subordinated Lenders. See Note 10, Debt, for a further discussion of the Subordinated Facility and penny warrants. During Fiscal Year 2020, the Company incurred $0.5 million and $4.2 million, respectively, of Interest expense, net – related party and Fair value adjustment of warrants – related party associated with the Subordinated Facility in the consolidated statements of operations and comprehensive income. The Company recorded $3.3 million of costs during Fiscal Year 2020 for professional fees of advisors to TowerBrook for services associated with the Transaction. The costs were included within During the Fiscal Years 2020, 2019 and 2018, the Company incurred an immaterial amount of other related party transactions. |
Barter Arrangement
Barter Arrangement | 12 Months Ended |
Jan. 30, 2021 | |
Barter Arrangement [Abstract] | |
Barter Arrangement | 18. Barter Arrangement The Company entered into a bartering arrangement with Evergreen Trading, a vendor, where the Company provided inventory in exchange for media credits. During Fiscal Year 2019, the Company exchanged inventory with a recorded value of $0.7 million for certain media credits valued at $2.0 million resulting in a gain of $1.3 million. The value of the media credits was recognized as revenue, with the corresponding asset included in Prepaid expenses and other current assets and Other assets on the accompanying consolidated balance sheets. The Company accounted for this barter transactions under ASC Topic No. 606 “Revenue from Contract with Customers.” Barter transactions with commercial substance are recorded at the estimated fair value of the products received. Revenue associated with barter transaction is recorded at the time of the exchange of the related assets. The Company had used a minimal amount of the media credits during Fiscal Year 2020 and after a review of the current plans for marketing and advertising, the Company decided to abandon the media credits and recorded a $1.9 million charge within Selling, general and administrative expenses in the consolidated statements of operations and comprehensive income. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s fiscal year ends on the Saturday, in January or February, nearest the last day of January, resulting in an additional week of results every five or six years. The Fiscal Years of 2020, 2019 and 2018 contained 52-weeks of operations. Certain prior year amounts have been restated to reflect the reverse stock split on November 9, 2020 including Common stock par value and Additional paid-in capital on the consolidated balance sheets and, shares and per share amounts on the consolidated statements of operations and comprehensive income. The prior year’s impairment of long-lived assets has been reclassified to be consistent with the current year presentation on the consolidated statements of operations and comprehensive income. The prior year’s accounts receivable from liquidators has been reclassified from Prepaid and other current assets to Accounts receivable to be consistent with the current year presentation on the consolidated balance sheets. |
Substantial Doubt about the Company's Ability to Continue as a Going Concern | Substantial Doubt about the Company’s Ability to Continue as a Going Concern In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-15, “Presentation of Financial Statements - Going Concern”, the Company’s management evaluated whether there are conditions or events that raise substantial doubt about its ability to continue as a going concern within one year after the date of issuance of these financial statements. Although the following matters raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date these financial statements have been issued, the Company’s consolidated financial statements have been prepared assuming that it will continue as a going concern. In December 2019, COVID-19 emerged and has subsequently spread worldwide. The World Health Organization declared COVID-19 a pandemic on March 11, 2020 resulting in federal, state and local governments and private entities mandating various restrictions, including travel restrictions, restrictions on public gatherings, stay at home orders and advisories and quarantining of people who may have been exposed to the virus. After close monitoring and taking into consideration the guidance from federal, state and local governments, in an effort to mitigate the spread of COVID-19, effective March 18, 2020, the Company closed all of its stores and its offices with employees working remotely where possible. The Company began reopening its stores in May 2020, with all stores having been reopened by late June 2020; however, operations of the stores may again be restricted by local guidelines. As a result of COVID-19, the Company’s revenues, results of operations and cash flows were materially adversely impacted, which resulted in a failure by us to comply with the financial covenants contained in our ABL Facility and Term Loan. substantial doubt about the Company’s ability to continue as During 2020, the Company entered into forbearance agreements (the “Forbearance Agreements”) with the lenders under its ABL Facility and Term Loan. Under the Forbearance Agreements, the respective lenders agreed not to exercise any rights and remedies through the period of time that allowed the Company to enter into a Transaction Support Agreement (“TSA”) on August 31, 2020 with lenders holding greater than 70% of the Company’s term loans (“Consenting Lenders”) and a majority of our shareholders on the principal terms of a financial restructuring (“Transaction”). The Transaction was consented to by the requisite term loan lenders and was consummated on an out-of-court basis on September 30, 2020. The Transaction resulted in a waiver of any past non-compliance with the terms of the Company’s credit facilities, provided the Company with additional liquidity and extended the maturity of Debt for a further discussion of the Company’s debt restructuring. The Company could experience other potential impacts because of COVID-19, including, but not limited to, additional charges from potential adjustments to the carrying amount of its inventory, goodwill, intangible assets, right-of-use assets, and long-lived assets as well as additional store closures. Actual results may differ materially from the Company’s current estimates as considerable risk remains related to the performance of stores, the resilience of the customer in an uncertain economic climate, and the possibility of a resurgence of COVID-19 with its potential for future business disruption and the related impacts on the U.S. economy in the coming 12 months. If one or more of these risks materialize, we believe that our current liquidity and capital may not be sufficient to finance our continued operations for at least the next 12 months. These risks raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date these financial statements have been issued. In response to the impacts of COVID-19, we improved our financial flexibility by restructuring our debt with an extended maturity. Additionally, we have taken and continue to take actions to reduce expenses and manage working capital to preserve cash on-hand. These actions include, but are not limited to: • reduced staffing and operating hours at retail locations for a phase-in period since reopening; • extension of payment terms with vendors; • negotiated with certain landlords for rent abatements and/or rent deferrals; • eliminated approximately half of our catalogs; • managed our inventory levels; and • reduced capital expenditures. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and judgments that affect reported amounts of assets, liabilities, shareholders’ equity, net sales and expenses, and the disclosure of contingent assets and liabilities. Significant estimates relied upon in preparing these consolidated financial statements include, but are not limited to, revenue recognition, including accounting for gift card breakage and estimated merchandise returns; estimating the value of inventory; impairment assessments for goodwill and other indefinite-lived intangible assets, and long-lived assets; and estimating equity-based compensation expense. As a result of COVID-19, the Company considered relevant impacts to its estimates related to merchandise returns reserve, estimating the fair value of inventory and inventory reserves; impairment assessments of goodwill, intangible assets, and other long-lived assets and there may be changes to those estimates in future periods. Actual results could differ from those estimates, and such differences could be material. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the assets, liabilities and results of operations of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements. |
Segment Reporting | Segment Reporting The Company determined its operating segments on the same basis that it assesses performance and makes operating decisions. The Company’s operating segments consist of its Retail and Direct channels, which have been aggregated into one reportable segment. All of the Company’s identifiable assets are located in the United States, which is where the Company is domiciled. The Company does not have sales outside the United States, nor does any customer represent more than 10% of total revenues for any period presented. |
Cash | Cash Cash includes cash on hand, demand deposits and all highly liquid investments with original maturities at the time of purchase of three months or less. |
Accounts Receivable | Accounts Receivable The Company’s accounts receivable relate primarily to payments due from banks for credit and debit transactions for approximately 2 to 5 days of sales. These receivables do not bear interest. The Company occasionally sells inventory to liquidators, and if these sales occur near the end of a reporting period, they are also included in accounts receivable. |
Inventories | Inventories Inventory consists of finished goods held for sale. Inventory is stated at the lower of cost or net realizable value. Cost is calculated using the weighted average method of accounting, and includes the cost to purchase merchandise from the Company’s manufacturers plus duties, tariffs, inbound freight and commissions. The net realizable value of the Company’s inventory is estimated based on historical experience, current and forecasted demand, and market conditions. The allowance for excess and obsolete inventory requires management to make assumptions and to apply judgment regarding a number of factors, including estimates applying past and projected sales performance to current inventory levels. As of January 30, 2021 and February 1, 2020, an inventory reserve of $6.4 million and $3.8 million has been recorded, respectively. The Company sells excess inventory in its stores, on-line at www.jjill.com Inventory from domestic suppliers is recorded when it is received at the distribution center. Inventory from foreign suppliers is recorded when goods are cleared for export on board the ship at the port of shipment. |
Property and Equipment | Property and Equipment Property and equipment purchases are recorded at cost. Property and equipment is presented net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized over the shorter of the term of the related lease or the estimated useful lives of the improvements. Expenditures for repairs and maintenance are charged to expense as incurred. Expenditures for betterments and major improvements that significantly enhance the value and increase the estimated useful life of the asset are capitalized and depreciated over the new estimated useful life. The carrying amounts of assets sold or retired and the related accumulated depreciation are eliminated in the year of disposal, and any resulting gains or losses are included in the consolidated statements of operations and comprehensive income. Estimated useful lives of property and equipment asset categories are as follows: Furniture, fixtures and equipment 5-7 years Computer software and hardware 3-5 years Leasehold improvements Shorter of estimated useful life or lease term |
Capitalized Interest | Capitalized Interest The cost of interest that is incurred in connection with ongoing construction projects is capitalized using a weighted average interest rate. These costs are included in property and equipment and amortized over the useful life of the related property or equipment. |
Long-lived Assets | Long-lived Assets The carrying value of long-lived assets, including amortizable identifiable intangible assets, and asset groups are evaluated whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant decrease in the market price of an asset, a significant adverse change in the extent or manner in which an asset is being used or a significant decrease in its physical condition, and operating performance that demonstrates continuing cash flow losses associated with an asset or asset group. A potential impairment has occurred if the projected future undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group are less than the carrying value of the asset or asset group. The estimate of cash flows includes management’s assumptions of cash inflows and outflows directly resulting from the use of the asset in operation. If the carrying value exceeds the sum of the undiscounted cash flows, an impairment charge is recorded equal to the excess of the asset or asset group’s carrying value over its fair value. Fair value is measured based on a projected discounted cash flow model using a discount rate the Company believes is commensurate with the market participant rate. The fair value measurement includes the fair value of the right of use asset and will not be written down below the asset’s fair value. Any impairment charge would be recognized within operating expenses. |
Goodwill and Indefinite-lived Intangible Assets | Goodwill and Indefinite-lived Intangible Assets Goodwill and indefinite-lived intangible assets are not amortized, but are reviewed for impairment at least annually, or more frequently when events or changes in circumstances indicate that the carrying value may not be recoverable. Judgments regarding indicators of potential impairment are based on market conditions and operational performance of the business. At each fiscal year-end, the Company performs an impairment analysis of goodwill. The Company may assess its goodwill for impairment initially using a qualitative approach to determine whether conditions exist to indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying value. If management concludes, based on its assessment of relevant events, facts and circumstances that it is more likely than not that a reporting unit’s carrying value is greater than its fair value, then a quantitative analysis will be performed to determine if there is any impairment. The Company may also elect to initially perform a quantitative analysis instead of starting with a qualitative approach. The quantitative assessment requires comparing the fair value of a reporting unit to its carrying value, including goodwill. The Company estimates fair value using the income approach. The income approach uses a discounted cash flow model, which involves significant estimates and assumptions, including preparation of revenue and profitability growth forecasts, selection of a discount rate, and selection of a terminal year multiple. These assumptions are classified as Level 3 inputs. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and no further testing is required. If the carrying amount exceeds the reporting unit’s fair value, a goodwill impairment charge is recognized for the amount in excess, not to exceed the total amount of goodwill allocated to that reporting unit. An impairment charge is recorded within the Company’s consolidated statements of operations and comprehensive income. At each year end, the Company also performs an impairment analysis of its indefinite-lived intangible assets. The Company performs an impairment analysis of its indefinite-lived intangible assets at least annually during the fourth fiscal quarter, or whenever events or changes in circumstances indicate that its carrying value may not be recoverable. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. The Company measures the fair value of its trade name using the relief from royalty method. The most significant estimates and assumptions inherent in this approach are the preparation of revenue forecasts, selection of royalty and discount rates and a terminal year multiple. These assumptions are classified as Level 3 inputs. |
Revenue Recognition | Revenue Recognition Revenue is primarily derived from the sale of apparel and accessory merchandise through our Retail channel and Direct channel, which includes website and catalog phone orders. Revenue recognition guidance requires entities to recognize revenue when control of the promised goods or services are transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. Revenue from our Retail channel is recognized at the time of sale and revenue from our Direct channel is recognized upon shipment of merchandise to the customer. The Company has a return policy where merchandise returns will be accepted within 90 days of the original purchase date. At the time of sale, the Company records an estimated sales reserve for merchandise returns based on historical prior returns experience and expected future returns. The estimated sales reserve is recorded as a return asset (and corresponding adjustment to cost of goods sold) for the cost of inventory and a return liability for the amount to settle the return with a customer (and a corresponding adjustment to revenue). The return asset and return liability are recorded in Prepaid expenses and other current assets, and Accrued expenses and other current liabilities, respectively, in the consolidated balance sheets. The Company collects and remits sales and use taxes in all states in which Retail and Direct sales occur and taxes are applicable. These taxes are reported on a net basis and are thereby excluded from revenue. The Company sells gift cards without expiration dates to customers. The Company does not charge administrative fees on unused gift cards. Proceeds from the sale of gift cards are recorded as a contract liability until the customer redeems the gift card or when the likelihood of redemption is remote. Based on historical experience, the Company estimates the value of outstanding gift cards that will ultimately not be redeemed (“gift card breakage”) and will not be escheated under statutory state unclaimed property laws. This gift card breakage is recognized as revenue over the time period established by the Company’s historical gift card redemption pattern. The Company recognizes revenues from shipments to customers before the shipping and handling activities occur and will accrue those related costs. Shipping and handling costs are recorded in selling, general and administrative expenses. |
Costs of Goods Sold | Costs of Goods Sold The Company’s costs of goods sold includes the direct costs of sold merchandise, which include customs, taxes, duties, commissions and inbound shipping costs, inventory shrinkage, and adjustments and reserves for excess, aged and obsolete inventory. Costs of goods sold does not include distribution center costs and allocations of indirect costs, such as occupancy, depreciation, amortization, or labor and benefits. |
Advertising Costs | Advertising Costs The Company incurs costs to produce, print, and distribute its catalogs. Catalog costs are capitalized as incurred and expensed when the catalog is mailed to the customer (the first time the advertising occurs). Advertising expenses were $15.6 million, $32.6 million, and $38.5 million for the Fiscal Years 2020, 2019, and 2018, respectively. The costs are included in Selling, general and administrative expenses in the consolidated statements of operations and comprehensive income. Other advertising costs are recorded as incurred. Other advertising costs recorded were $16.2 million, $26.3 million, and $23.8 million for the Fiscal Years 2020, 2019, and 2018, respectively. The costs are included in Selling, general and administrative expenses in the consolidated statements of operations and comprehensive income. |
Operating Leases | Operating Leases The Company determines if an arrangement is a lease at inception. Lease agreements will typically exist with lease and non-lease components, which are generally accounted for separately. The Company recognizes operating lease liabilities equal to the present value of the lease payments and operating lease assets representing the right to use the underlying asset for the lease term. The lease expense for lease payments is recognized on a straight-line basis over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at lease commencement in determining the present value of lease payments. The operating lease assets include any lease payments made prior to lease commencement and are reduced by any lease incentives. Under lease accounting guidance, for any new leases entered into, the Company assesses if it is reasonably certain to exercise lease options to extend or terminate the lease for inclusion (or exclusion) in the lease term when the Company measures the lease liability. The depreciable life of any assets and leasehold improvements are limited by the expected lease term. Certain of the Company’s retail operating leases include variable rental payments based on a percentage of retail sales over contractual levels. Variable rental payments are recognized in the consolidated statements of operations and comprehensive income in the period in which the obligation for those payments is incurred. If such variable operating leases arise that include incentives from landlords in the form of cash, the Company will record the full amount of the incentive when specific performance criteria are met as a deferred liability. The deferred liability is amortized into income as a reduction of rent expense over the term of the applicable lease, including options to extend if they are reasonably certain to be exercised. The Company recognized those liabilities to be amortized within a year as a current liability and those greater than a year as a long-term liability. For purposes of recognizing these incentives and rental expenses on a straight-line basis, the Company uses the date it obtains the legal right to use and control the lease asset to begin amortization, which is generally when the Company takes possession of the asset. |
Debt Issuance Costs | Debt Issuance Costs The Company defers costs directly associated with acquiring third-party financing. Debt issuance costs are deferred and amortized using the effective interest rate method over the term of the related long-term debt agreement and the straight-line method for the revolving credit agreement. Debt issuance costs related to long-term debt are reflected as a direct deduction from the carrying amount of the debt on the Company’s balance sheet. From time-to-time the Company could make prepayments on the long-term debt and a portion of the debt issuance costs associated with the prepayment would be accelerated and expensed at that time. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method and elected to be taxed as a C corporation. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying values and their respective tax bases, using enacted tax rates expected to be applicable in the years in which the temporary differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company evaluates the realizability of its deferred tax assets and establishes a valuation allowance when it is more likely than not that all or a portion of the deferred tax assets will not be realized. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected, scheduling of anticipated reversals of taxable temporary differences, and considering prudent and feasible tax planning strategies. The Company records liabilities for uncertain income tax positions based on a two-step process. The first step is recognition, where an individual tax position is evaluated as to whether it has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have less than a 50% likelihood of being sustained, no tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, the Company performs the second step of measuring the benefit to be recorded. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized on ultimate settlement. The actual benefits ultimately realized may differ from the estimates. In future periods, changes in facts, circumstances and new information may require the Company to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in income tax expense and liability in the period in which such changes occur. Any interest or penalties incurred are recorded in Selling, general, and administrative expenses in the accompanying consolidated statements of operations and comprehensive income. The Company incurred immaterial amounts of interest expense and penalties related to income taxes for Fiscal Years 2020, 2019 and 2018. |
Comprehensive Income | Comprehensive Income Comprehensive income is a measure of net income and all other changes in equity that result from transactions other than with equity holders and would normally be recorded in the consolidated statements of shareholders’ equity and the consolidated statements of comprehensive income. The Company’s management has determined that net income is the only component of the Company’s comprehensive income. Accordingly, there is no difference between net income and comprehensive income. |
Equity-based Compensation | Equity-based Compensation The Company accounts for equity-based compensation for employees and directors by recognizing the fair value of equity-based compensation as an expense in the calculation of net income, based on the grant-date fair value. The Company recognizes equity-based compensation expense in the periods in which the employee or director is required to provide service, which is generally over the vesting period of the individual equity instruments. The fair value of the equity-based awards is determined using the Black-Scholes option pricing model or the stock price on the date of grant. All of the equity-based awards granted by the Company during the Fiscal Years |
Earnings Per Share | Earnings Per Share Basic net income per common share attributable to common shareholders is calculated by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income per common share attributable to common shareholders is calculated by dividing net income attributable to common shareholders by the diluted weighted average number of common shares outstanding for the period. There were no potentially dilutive securities outstanding during Fiscal Years 2020 and 2019 because the Company incurred a Net loss in those fiscal years. There were 1.5 million dilutive securities outstanding during the Fiscal Year 2018. |
Credit Card Agreement | Credit Card Agreement The Company has an arrangement with a third party to provide a private label credit card to its customers through August 2023, and will automatically renew thereafter for successive two year terms. The Company does not bear the credit risk associated with the private label credit card at any point prior to the termination of the agreement, at which point the Company would be obligated to purchase the receivables. If the arrangement is terminated prior to September 7, 2021 and other criteria are met, the Company is obligated to pay a purchase price premium. The potential impact of the purchase obligation cannot be reasonably estimated, and therefore, has not been recorded. The Company receives royalty payments through its private label credit card agreement. The royalty payments are recognized as revenue when they are received. Royalty payments recognized were $3.3 million, $5.6 million, and $5.6 million for the Fiscal Years 2020, 2019 and 2018, respectively. The Company also receives reimbursements for costs of marketing programs related to the private label credit card, which are recorded as revenue as earned and the costs incurred are recorded as Selling, general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income. Reimbursements for costs of marketing programs of $0.9 million, $1.9 million, and $2.4 million were recognized in revenue in Fiscal Years 2020, 2019 and 2018, respectively. The credit card agreement provides a signing bonus to the Company, which is being recognized into revenue over the life of the agreement. |
Employee Benefit Plan | Employee Benefit Plan The Company has a 401(k) retirement plan covering all eligible employees who meet certain age and employment requirements pursuant to Section 401(k) of the Internal Revenue Code. Subject to certain dollar limits, eligible employees may contribute a portion of their pretax annual compensation to the plan, on a tax-deferred basis. The plan operates on a calendar year basis. The Company may, at its discretion, make elective contributions of up to 50% of the first 6% of the gross salary of the employee, which vests over a five-year period. Discretionary contributions made by the Company for the Fiscal Years 2020, 2019 and 2018 were $1.1 million, $1.5 million, and $1.5 million, respectively. |
Concentration of Credit Risks | Concentration of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk principally consist of cash held in financial institutions and accounts receivable. The Company considers the credit risk associated with these financial instruments to be minimal. Cash is held by financial institutions with high credit ratings and the Company has not historically sustained any credit losses associated with its cash balances. The Company evaluates the credit risk associated with accounts receivable to determine if an allowance for doubtful accounts is necessary. As of January 30, 2021 and February 1, 2020, the Company determined that no allowance for estimated credit losses was necessary. |
Recently Adopted Accounting Standards and Issued Accounting Pronouncements | As an ‘‘emerging growth company’’ (‘‘EGC’’), the Jumpstart Our Business Startups Act (‘‘JOBS Act’’) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected not to take advantage of the extended transition period under the JOBS Act. As a “small reporting company” (“SRC”), the SEC allows the Company to delay adoption of certain new or revised accounting pronouncements applicable. The adoption dates discussed below reflect SRC delayed adoption dates, if applicable. Recently Adopted Accounting Standards The Company adopted ASU 2016-02- Leases The Company applied a portfolio approach to effectively account for the operating lease liabilities and operating lease assets; the Company did not have financing leases. The Company excludes leases with an initial term of 12 months or less from the application of Topic 842. The Company did not elect the hindsight practical expedient; therefore, upon adoption, the Company used the remaining lease term of the current lease, option or extension. Adoption of the new standard resulted in the recording of operating lease assets and operating lease liabilities of $223.3 million and $250.5 million, respectively, on the Company’s consolidated balance sheets as of February 3, 2019. The difference between the approximate value of the operating lease assets and liabilities is attributable to deferred rent, lease incentives, leasehold interests and prepaid rent. There was no material impact on the Company’s consolidated statements of operations and comprehensive income or consolidated statements of cash flows. The Company’s comparative periods continue to be presented and disclosed in accordance with legacy guidance in Topic 840. In May 2014, the FASB issued ASU 2014-09 – Revenue from Contracts with Customers (Topic 606) Revenue Recognition The Company adopted ASU 2014-09 and related amendments, collectively known as Accounting Standards Codification 606 (“Topic 606”) as of February 4, 2018 on a modified retrospective basis applied to contracts which were not completed as of February 4, 2018. As part of the adoption of Topic 606, Topic 340-20 – Capitalized Advertising Costs Advertising Costs In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” Topic 326, “Measurement of Credit Losses on Financial Instruments” (ASU 2016-13), subsequently amended by various standard updates. ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information when determining credit loss estimates. ASU 2016-13 also requires financial assets to be measured net of expected credit losses at the time of initial recognition. ASU 2019-10, issued in November 2019, delayed the effective date of ASU 2016-13. ASU 2016-13 is effective for a public company’s annual reporting periods beginning after December 15, 2019, and interim periods within those annual periods. The Company elected to early adopt ASU 2016-13 during Fiscal Year 2020. Given that a significant majority of revenue transactions are point of sale transactions whereby the Company does not extend credit to the customer, the adoption of this guidance did not have a significant impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company elected to early adopt ASU 2016-13 during Fiscal Year 2020. The adoption of this guidance did not have a significant impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract,” which will align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted ASU 2018-15 in Fiscal Year 2020. The adoption of this guidance did not have a significant impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes” . The pronouncement is effective for a public company’s annual reporting periods beginning after December 15, 2020, and interim periods within those annual periods. As an EGC, the Company has elected to adopt the pronouncement following the effective date for private companies beginning with annual reporting periods beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact that this standard will have on the consolidated financial statements. The Company plans to adopt the pronouncement in Fiscal Year 2022. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform” , which provides temporary optional guidance to companies impacted by the transition away from the London Interbank Offered Rate (“LIBOR”). The guidance provides certain expedients and exceptions to applying GAAP in order to lessen the potential accounting burden when contracts, hedging relationships, and other transactions that reference LIBOR as a benchmark rate are modified. The guidance is currently effective and may be applied prospectively at any point through December 31, 2022. The Company is assessing what impact this guidance will have on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property and Equipment Asset | Estimated useful lives of property and equipment asset categories are as follows: Furniture, fixtures and equipment 5-7 years Computer software and hardware 3-5 years Leasehold improvements Shorter of estimated useful life or lease term |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Revenues Disaggregated by Revenue Source | The following table presents revenues disaggregated by revenue source (in thousands): For the Fiscal Year Ended January 30, 2021 For the Fiscal Year Ended February 1, 2020 For the Fiscal Year Ended February 2, 2019 Retail $ 147,420 $ 389,521 $ 412,640 Direct 279,310 301,824 293,622 Net revenues $ 426,730 $ 691,345 $ 706,262 |
Schedule of Contract Liabilities | Total contract liabilities consisted of the following (in thousands): January 30, 2021 February 1, 2020 Contract liabilities: Signing bonus $ 365 $ 506 Unredeemed gift cards 6,818 7,264 Total contract liabilities ( 1) $ 7,183 $ 7,770 (1) Included in Accrued expenses and other current liabilities on the Company’s consolidated balance sheets. The short-term portion of the signing bonus is included in Accrued expenses and other current liabilities on the Company’s consolidated balance sheets. |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets include the following (in thousands): January 30, 2021 February 1, 2020 Prepaid rent $ 2,638 $ 2,494 Prepaid catalog costs 1,498 2,590 Prepaid store supplies 1,443 2,102 Returns reserve asset 3,990 5,134 Income tax receivable 28,014 3,298 Other prepaid expenses 4,837 4,477 Other current assets 615 1,321 Total prepaid expenses and other current assets $ 43,035 $ 21,416 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Roll-Forward of Carrying Amount of Goodwill | The following table displays a rollforward of the carrying amount of goodwill from February 2, 2019 to January 30, 2021 (in thousands): Goodwill at February 2, 2019 $ 197,025 Impairment losses (119,428 ) Balance, February 1, 2020 77,597 Impairment losses (17,900 ) Balance, January 30, 2021 $ 59,697 |
Summary of Intangible Assets | A summary of intangible assets as of January 30, 2021 and February 1, 2020 is as follows (in thousands): Weighted Average January 30, 2021 Useful Life (Years) Gross Accumulated Amortization Accumulated Impairment Carrying Amount Indefinite-lived: Trade name N/A $ 58,100 $ — $ 24,100 $ 34,000 Definite-lived: Customer relationships 13.2 134,200 76,604 2,620 54,976 Total intangible assets $ 192,300 $ 76,604 $ 26,720 $ 88,976 Weighted Average February 1, 2020 Useful Life (Years) Gross Accumulated Amortization Accumulated Impairment Carrying Amount Indefinite-lived: Trade name N/A $ 58,100 $ — $ 12,100 $ 46,000 Definite-lived: Customer relationships 13.2 134,200 67,386 — 66,814 Total intangible assets $ 192,300 $ 67,386 $ 12,100 $ 112,814 |
Summary of Estimated Useful Lives of Intangible Assets | The definite-lived intangible assets are amortized over the period the Company expects to receive the related economic benefit, which for customer lists is based upon estimated future net cash inflows. The estimated useful lives of intangible assets are as follows: Asset Amortization Method Estimated Useful Life Customer lists Pattern of economic benefit 9 - 16 years |
Summary of Estimated Amortization Expense | The estimated amortization expense for each of the next five years and thereafter is as follows (in thousands): Fiscal Year Estimated Amortization Expense 2021 $ 8,264 2022 7,523 2023 6,942 2024 5,231 2025 4,693 Thereafter 22,323 Total $ 54,976 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment at January 30, 2021 and February 1, 2020 consist of the following (in thousands): January 30, 2021 February 1, 2020 Leasehold improvements $ 104,831 $ 107,853 Furniture, fixtures and equipment 49,312 50,880 Computer hardware and software 54,934 51,996 Total property and equipment, gross 209,077 210,729 Accumulated depreciation (136,093 ) (106,543 ) 72,984 104,186 Construction in progress 922 3,459 Property and equipment, net $ 73,906 $ 107,645 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities include the following (in thousands): January 30, 2021 February 1, 2020 Accrued payroll and benefits $ 6,115 $ 4,034 Accrued returns reserve 10,676 12,822 Gift certificates redeemable 6,818 7,265 Accrued professional fees 1,399 1,673 Taxes, other than income taxes 2,362 2,594 Accrued occupancy 877 1,136 Other accrued employee costs 2,261 2,219 Other 13,346 10,969 Total accrued expenses and other current liabilities $ 43,854 $ 42,712 |
Schedule of Changes in Accrued Returns Reserve | The following table reflects the changes in the accrued returns reserve for the Fiscal Years 2020, 2019, and 2018 (in thousands): Accrued returns reserve Beginning of Period Charged to Expenses Deductions End of Period Fiscal Year Ended February 2, 2019 $ 7,663 $ 134,887 $ (131,701 ) 10,849 Fiscal Year Ended February 1, 2020 10,849 138,355 (136,382 ) 12,822 Fiscal Year Ended January 30, 2021 12,822 81,588 (83,734 ) 10,676 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Restructuring And Related Activities [Abstract] | |
Activity of Restructuring Costs and Related Accruals | The following table summarizes the activity of the restructuring costs discussed above and related accruals recorded in Accrued expenses and other current liabilities on the consolidated balance sheets (in thousands) : Program Costs to Date February 1, 2020 Cash Payments Adjustments January 30, 2021 January 30, 2021 Employee separation costs $ 216 $ 131 $ 85 $ — $ 1,402 Other 39 1 38 — 195 Total restructuring costs $ 255 $ 132 $ 123 $ — $ 1,597 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Debt Disclosure [Abstract] | |
Components of Outstanding Long term debt | The components of the Company’s outstanding long-term debt were as follows (in thousands): Carrying Value of Debt January 30, 2021 February 1, 2020 Term Loan (principal of $5,007 and $237,579, respectively) $ 4,904 $ 233,999 Priming Loan (principal of $229,773) 223,296 - Subordinated Facility (principal and paid-in kind interest of $15,666) 3,311 - Less: Current portion (2,799 ) (2,799 ) Net long-term debt $ 228,712 $ 231,200 |
Schedule of Minimum Future Principal Amounts Payable Under Outstanding Long-term Debt | As of January 30, 2021, minimum future principal amounts payable under the Company’s outstanding long-term debt are as follows (in thousands): Fiscal Year Term Loan Priming Loan Subordinated Facility Total 2021 $ 60 $ 2,739 $ - $ 2,799 2022 4,947 2,739 - 7,686 2023 - 2,739 - 2,739 2024 - 221,556 15,000 236,556 Total $ 5,007 $ 229,773 $ 15,000 $ 249,780 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Fair Value Carrying Value Level 1 Level 2 Level 3 Recurring fair value measurements Warrants $ 15,997 $ - $ 15,997 $ - Derivative liability 2,436 - 2,436 - Total recurring fair value measurements $ 18,433 $ - $ 18,433 $ - Financial instruments not carried at fair value Total debt $ 231,511 $ - $ 220,010 $ - Total financial instruments not carried at fair value $ 231,511 $ - $ 220,010 $ - |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows (in thousands): Lease Cost Classification For the Fiscal Year Ended January 30, 2021 For the Fiscal Year Ended February 1, 2020 Operating lease cost SG&A Expenses $ 43,824 $ 47,482 Variable lease cost SG&A Expenses 1,340 3,434 Total lease cost $ 45,164 $ 50,916 |
Schedule Of Lease Terms And Discount Rate | Lease Term and Discount Rate January 30, 2021 February 1, 2020 Weighted-average remaining lease term (in years) Operating leases 6.5 7.2 Weighted-average discount rate Operating leases 6.6 % 6.5 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of January 30, 2021 were as follows (in thousands): Fiscal Year Operating Leases ( 1) 2021 $ 46,752 2022 44,001 2023 41,240 2024 35,959 2025 30,799 Thereafter 69,788 Less: Imputed interest 51,550 Present value of lease liabilities $ 216,989 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The (benefit) provision for income taxes for the Fiscal Years 2020, 2019, and 2018 consists of the following (in thousands): For the Fiscal Year Ended January 30, 2021 For the Fiscal Year Ended February 1, 2020 For the Fiscal Year Ended February 2, 2019 Current U.S. Federal $ (30,304 ) $ 5,636 $ 11,634 State and local (659 ) 2,165 4,334 Total current (30,963 ) 7,801 15,968 Deferred tax benefit U.S. Federal (13,922 ) (8,681 ) (3,513 ) State and local (3,277 ) (2,142 ) (806 ) Total deferred tax benefit (17,199 ) (10,823 ) (4,319 ) Total income tax (benefit) provision $ (48,162 ) $ (3,022 ) $ 11,649 |
Schedule of Reconciliation of Statutory Federal Income Tax Rate | A reconciliation of the federal statutory income tax rate to the Company’s effective tax rate is as follows for the periods presented: For the Fiscal Year Ended January 30, 2021 For the Fiscal Year Ended February 1, 2020 For the Fiscal Year Ended February 2, 2019 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax effect 4.9 % 0.3 % 6.3 % Goodwill impairment (2.0 )% (19.1 )% 0.0 % Net operating loss CARES ACT benefit 5.7 % 0.0 % 0.0 % Valuation allowance (2.9 )% 0.0 % 0.0 % Nondeductible equity-based compensation expense (0.2 )% 0.1 % 0.3 % Charitable contributions 0.1 % 0.1 % (0.6 )% Tax return to provision adjustments 0.0 % 0.0 % 0.1 % Other (0.9 )% (0.1 )% 0.5 % Effective tax rate 25.7 % 2.3 % 27.6 % |
Components of Deferred Income Tax Assets and (Liabilities) | The components of deferred tax assets (liabilities) were as follows (in thousands): January 30, 2021 February 1, 2020 Deferred tax assets Accrued expenses $ 7,984 $ 5,384 State net operating loss carryforward 4,621 — Start-up costs 539 618 Lease liabilities 58,768 64,068 Total deferred tax assets, gross 71,912 70,070 Less: Deferred tax valuation allowances (5,472 ) — Total deferred tax assets net of valuation allowances 66,440 70,070 Deferred tax liabilities Inventory (1,930 ) (2,496 ) Lease assets (42,785 ) (54,721 ) Fixed assets (11,748 ) (15,341 ) Intangible assets (22,148 ) (27,826 ) Debt issuance costs (415 ) — Prepaid expenses (1,249 ) (720 ) Total deferred tax liabilities (80,275 ) (101,104 ) Net deferred tax liabilities $ (13,835 ) $ (31,034 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Common Share | The following table summarizes the computation of basic and diluted net income per common share for the Fiscal Years 2020, 2019, and 2018 (in thousands, except share and per share data): For the Fiscal Year Ended January 30, 2021 For the Fiscal Year Ended February 1, 2020 For the Fiscal Year Ended February 2, 2019 Numerator Net (loss) income attributable to common shareholders: $ (139,404 ) $ (128,567 ) $ 30,525 Denominator Weighted average number of common shares outstanding, basic: 9,159,686 8,749,865 8,554,263 Dilutive effect of stock options and restricted shares: — — 293,687 Weighted average number of common shares outstanding, diluted: 9,159,686 8,749,865 8,847,950 Net (loss) income per common share attributable to common shareholders, basic: $ (15.22 ) $ (14.69 ) $ 3.57 Net (loss) income per common share attributable to common shareholders, diluted: $ (15.22 ) $ (14.69 ) $ 3.45 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Summary of Restricted Stock Activity | The following table summarizes restricted stock activity during Fiscal Years 2020, 2019 and 2018 inclusive of inducement awards: Number of Units Weighted- Average Grant Date Fair Value Unvested units outstanding at February 3, 2018 353,558 $ 3.25 Granted 498,109 23.95 Vested (220,079 ) 4.10 Forfeited (54,908 ) 12.75 Unvested units outstanding at February 2, 2019 576,680 $ 16.05 Granted 486,296 20.90 Vested (247,768 ) 20.40 Forfeited (326,136 ) 22.87 Unvested units outstanding at February 1, 2020 489,072 $ 12.74 Granted 168,421 2.75 Vested (188,764 ) 16.69 Forfeited (79,443 ) 16.94 Unvested units outstanding at January 30, 2021 389,286 $ 13.81 |
Summary of Stock Option Activity | The following table summarizes stock option activity during Fiscal Years 2020, 2019 and 2018, inclusive of inducement awards: Number of Units Weighted- Average Grant Date Fair Value Weighted- Average Exercise Price Weighted- Average Remaining Contractual Terms Aggregate- Intrinsic Value ( 1) (years) (thousands) Units outstanding at February 3, 2018 53,023 $ 30.25 $ 66.30 - $ — Granted 159,374 11.00 24.50 Forfeited (2,487 ) 30.15 65.60 Units outstanding at February 2, 2019 209,910 $ 15.65 $ 34.55 9.0 $ 749.1 Forfeited (189,019 ) 14.04 25.39 — — Options outstanding at February 1, 2020 20,891 $ 30.16 $ 59.85 7.3 $ — Forfeited (1,990 ) 30.16 59.85 — — Options outstanding at January 30, 2021 18,901 $ 30.15 $ 59.85 6.3 $ — Options exercisable at January 30, 2021 14,176 $ 30.15 $ 59.85 6.3 $ — (1) The intrinsic value is the amount by which the market price at the end of the period of the underlying share of stock exceeds the exercise price of the stock option. |
Fair Values Estimated Using Black-Scholes Option-Pricing Model | The fair values of options are estimated using the Black-Scholes option-pricing model with the following assumptions: February 2, 2019 Risk-free rate 2.14% Expected term (in years) 6.25 Expected volatility 41.81% Expected dividend yield 0.00% |
Purchase Plan [Member] | |
Fair Values Estimated Using Black-Scholes Option-Pricing Model | The fair value of shares purchased under the Purchase Plan are estimated using the Black-Scholes option-pricing model with the following assumptions: February 1, 2020 February 2, 2019 Risk-free rate 1.59% 2.63% Expected term (in years) 1.00 1.00 Expected volatility 45.11% 42.54% Expected dividend yield 0.00% 0.00% |
General - Additional Informatio
General - Additional Information (Detail) | Jan. 30, 2021Store |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of stores | 267 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||
Jan. 30, 2021USD ($) | Jan. 30, 2021USD ($)SegmentCustomershares | Feb. 01, 2020USD ($)shares | Feb. 02, 2019USD ($)shares | Feb. 01, 2019USD ($) | |
Schedule Of Significant Accounting Policies [Line Items] | |||||
Number of reportable segments | Segment | 1 | ||||
Number of customers with more than 10% of revenues | Customer | 0 | ||||
Inventory reserve | $ 6,400,000 | $ 6,400,000 | $ 3,800,000 | ||
Dilutive securities outstanding | shares | 0 | 0 | 1,500,000 | ||
Net sales | $ 426,730,000 | $ 691,345,000 | $ 706,262,000 | $ 706,262,000 | |
Costs of goods sold | 181,103,000 | 262,766,000 | 245,982,000 | ||
Operating (loss) income | (164,118,000) | (112,018,000) | 61,238,000 | ||
(Loss) income before provision for income taxes | (187,566,000) | (131,589,000) | 42,174,000 | ||
Net income (loss) | $ (139,404,000) | (128,567,000) | 30,525,000 | ||
Credit card arrangement extension, description | The Company has an arrangement with a third party to provide a private label credit card to its customers through August 2023, and will automatically renew thereafter for successive two year terms. | ||||
Royalty payments recognized as revenue | $ 426,730,000 | 691,345,000 | 706,262,000 | $ 706,262,000 | |
Employee benefit plan description of elective contributions | The Company may, at its discretion, make elective contributions of up to 50% of the first 6% of the gross salary of the employee, which vests over a five-year period. | ||||
Employee benefit plan elective contributions, vesting period | 5 years | ||||
Discretionary contributions made by Company | $ 1,100,000 | 1,500,000 | 1,500,000 | ||
Allowance for doubtful accounts | 0 | 0 | 0 | ||
Royalty [Member] | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Net sales | 3,300,000 | 5,600,000 | 5,600,000 | ||
Royalty payments recognized as revenue | 3,300,000 | 5,600,000 | 5,600,000 | ||
Revision of Prior Period, Error Correction, Adjustment [Member] | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Net sales | 4,900,000 | ||||
Costs of goods sold | 2,500,000 | ||||
Operating (loss) income | 2,400,000 | ||||
(Loss) income before provision for income taxes | 2,400,000 | ||||
Net income (loss) | 1,700,000 | ||||
Royalty payments recognized as revenue | $ 4,900,000 | ||||
Selling, General and Administrative Expenses [Member] | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Advertising expenses | 15,600,000 | 32,600,000 | 38,500,000 | ||
Other advertising expense | 16,200,000 | 26,300,000 | 23,800,000 | ||
Operating Expenses [Member] | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Reimbursements for credit card marketing program | $ 900,000 | $ 1,900,000 | $ 2,400,000 | ||
Minimum [Member] | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Threshold period for third-party credit and debit transactions | 2 days | ||||
Maximum [Member] | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Threshold period for third-party credit and debit transactions | 5 days | ||||
Transaction Support Agreement [Member] | Minimum [Member] | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Equity method investment ownership percentage | 70.00% | 70.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment Asset (Detail) | 12 Months Ended |
Jan. 30, 2021 | |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Computer Software and Hardware [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Computer Software and Hardware [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Shorter of estimated useful life or lease term |
Accounting Standards - Addition
Accounting Standards - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 03, 2019 | Feb. 04, 2018 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Operating lease liabilities | $ 216,989 | |||
Operating lease assets, net | 161,135 | $ 211,332 | ||
Expected sales returns | $ 5,000 | |||
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Operating lease liabilities | $ 250,500 | |||
Operating lease assets, net | $ 223,300 | |||
Accounting Standards Update 2014-09 | Retained Earnings [Member] | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Cumulative effect reduction to accumulated retained earnings | 800 | |||
Accounting Standards Update 2014-09 | Retained Earnings [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Cumulative effect reduction to accumulated retained earnings | 300 | |||
Accounting Standards Update 2014-09 | Retained Earnings [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Cumulative effect reduction to accumulated retained earnings | $ 500 |
Revenues - Schedule of Revenues
Revenues - Schedule of Revenues Disaggregated by Revenue Source (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 01, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Net revenues | $ 426,730 | $ 691,345 | $ 706,262 | $ 706,262 |
Retail [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenues | 147,420 | 389,521 | 412,640 | |
Direct [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenues | $ 279,310 | $ 301,824 | $ 293,622 |
Revenues - Schedule of Contract
Revenues - Schedule of Contract Liabilities (Detail) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Contract liabilities: | ||
Signing bonus | $ 365 | $ 506 |
Unredeemed gift cards | 6,818 | 7,264 |
Total contract liabilities | $ 7,183 | $ 7,770 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2019USD ($) | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | Jan. 30, 2021USD ($) | Jan. 08, 2019Container | |
Disaggregation Of Revenue [Line Items] | ||||||
Revenue recognized related to gift card redemptions and breakage | $ 8.9 | $ 12.8 | $ 12.4 | |||
Signing bonus | $ 0.4 | |||||
Number of Containers | Container | 2 | |||||
Insurance claim settlement amount | $ 3.3 | |||||
Selling, General and Administrative Expenses [Member] | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Proceeds from insurance claims | $ 2.4 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid rent | $ 2,638 | $ 2,494 |
Prepaid catalog costs | 1,498 | 2,590 |
Prepaid store supplies | 1,443 | 2,102 |
Returns reserve asset | 3,990 | 5,134 |
Income tax receivable | 28,014 | 3,298 |
Other prepaid expenses | 4,837 | 4,477 |
Other current assets | 615 | 1,321 |
Total prepaid expenses and other current assets | $ 43,035 | $ 21,416 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Jan. 30, 2021 | Oct. 31, 2020 | May 02, 2020 | Feb. 01, 2020 | Aug. 03, 2019 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Goodwill And Other Intangible Assets [Line Items] | |||||||||
Goodwill | $ 59,697,000 | $ 77,597,000 | $ 59,697,000 | $ 77,597,000 | |||||
Impairment of goodwill | 0 | $ 0 | $ 17,900,000 | 31,000,000 | $ 88,400,000 | 17,900,000 | 119,428,000 | ||
Impairment of intangible assets | $ 7,000,000 | 14,620,000 | 12,100,000 | ||||||
Accumulated goodwill impairment losses | 137,300,000 | $ 137,300,000 | |||||||
Amortization expense for intangible assets | $ 9,200,000 | $ 11,300,000 | $ 12,800,000 | ||||||
Minimum [Member] | |||||||||
Goodwill And Other Intangible Assets [Line Items] | |||||||||
Cash flow assumption period for analysis | 5 years | ||||||||
Weighted average fair value of goodwill and intangible assets | 21.50% | ||||||||
Royalty rate to estimate available returns | 0.25% | ||||||||
Maximum [Member] | |||||||||
Goodwill And Other Intangible Assets [Line Items] | |||||||||
Cash flow assumption period for analysis | 10 years | ||||||||
Weighted average fair value of goodwill and intangible assets | 34.00% | ||||||||
Royalty rate to estimate available returns | 4.00% | ||||||||
Trade Name [Member] | |||||||||
Goodwill And Other Intangible Assets [Line Items] | |||||||||
Impairment of intangible assets | 8,000 | 0 | 4,000,000 | $ 5,100,000 | |||||
Customer Relationships [Member] | |||||||||
Goodwill And Other Intangible Assets [Line Items] | |||||||||
Impairment of intangible assets, finite-lived | $ 0 | $ 0 | $ 2,600,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Rollforward of Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jan. 30, 2021 | Oct. 31, 2020 | May 02, 2020 | Feb. 01, 2020 | Aug. 03, 2019 | Jan. 30, 2021 | Feb. 01, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||
Goodwill, Beginning Balance | $ 77,597 | $ 197,025 | |||||
Impairment losses | $ 0 | $ 0 | $ (17,900) | $ (31,000) | $ (88,400) | (17,900) | (119,428) |
Goodwill, Ending Balance | $ 59,697 | $ 77,597 | $ 59,697 | $ 77,597 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Definite-lived Intangible Assets, Accumulated Amortization | $ 76,604 | $ 67,386 |
Definite-lived Intangible Assets, Accumulated Impairement | 26,720 | 12,100 |
Total Intangible Assets, Gross | 192,300 | 192,300 |
Total Intangible Assets, Gross | $ 88,976 | $ 112,814 |
Customer Relationships [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Useful Life | 13 years 2 months 12 days | 13 years 2 months 12 days |
Definite-lived Intangible Assets, Gross | $ 134,200 | $ 134,200 |
Definite-lived Intangible Assets, Accumulated Amortization | 76,604 | 67,386 |
Definite-lived Intangible Assets, Accumulated Impairement | 2,620 | |
Definite-lived Intangible Assets, Carrying Amount | 54,976 | 66,814 |
Trade Name [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived, Gross | 58,100 | 58,100 |
Indefinite-lived, Accumulated Impairment | 24,100 | 12,100 |
Indefinite-lived, Carrying Amount | $ 34,000 | $ 46,000 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Summary of Estimated Useful Lives of Intangible Assets (Detail) - Customer Lists [Member] | 12 Months Ended |
Jan. 30, 2021 | |
Finite Lived Intangible Assets [Line Items] | |
Amortization Method | Pattern of economic benefit |
Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 9 years |
Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 16 years |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Summary of Estimated Amortization Expense (Detail) - Customer Relationships [Member] - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Fiscal Year Estimated Amortization Expense | ||
2021 | $ 8,264 | |
2022 | 7,523 | |
2023 | 6,942 | |
2024 | 5,231 | |
2025 | 4,693 | |
Thereafter | 22,323 | |
Definite-lived Intangible Assets, Carrying Amount | $ 54,976 | $ 66,814 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 209,077 | $ 210,729 |
Accumulated depreciation | (136,093) | (106,543) |
Property and equipment, excluding construction in progress | 72,984 | 104,186 |
Construction in progress | 922 | 3,459 |
Property and equipment, net | 73,906 | 107,645 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 104,831 | 107,853 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 49,312 | 50,880 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 54,934 | $ 51,996 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 30, 2021 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Property, Plant and Equipment [Line Items] | ||||
Capitalized software, subject to amortization on cost basis, included in property and equipment | $ 40,800 | $ 40,800 | $ 38,700 | |
Capitalized software, accumulated amortization | 27,000 | 27,000 | 20,600 | |
Total depreciation expense | 24,500 | 26,600 | $ 24,400 | |
Impairment of long-lived assets | 33,777 | 2,325 | 0 | |
Interest cost capitalized in connection with construction in progress | 100 | 300 | $ 400 | |
Leasehold Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment of long-lived assets | $ 3,500 | $ 10,800 | $ 300 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Payables And Accruals [Abstract] | ||||
Accrued payroll and benefits | $ 6,115 | $ 4,034 | ||
Accrued returns reserve | 10,676 | 12,822 | $ 10,849 | $ 7,663 |
Gift certificates redeemable | 6,818 | 7,265 | ||
Accrued professional fees | 1,399 | 1,673 | ||
Taxes, other than income taxes | 2,362 | 2,594 | ||
Accrued occupancy | 877 | 1,136 | ||
Other accrued employee costs | 2,261 | 2,219 | ||
Other | 13,346 | 10,969 | ||
Total accrued expenses and other current liabilities | $ 43,854 | $ 42,712 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Schedule of Changes in Accrued Returns Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Payables And Accruals [Abstract] | |||
Accrued returns reserve, Beginning of Period | $ 12,822 | $ 10,849 | $ 7,663 |
Accrued returns reserve, Charged to Expenses | 81,588 | 138,355 | 134,887 |
Accrued returns reserve, Deductions | (83,734) | (136,382) | (131,701) |
Accrued returns reserve, End of Period | $ 10,676 | $ 12,822 | $ 10,849 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Detail) $ in Millions | 3 Months Ended |
Aug. 03, 2019USD ($) | |
Selling, General and Administrative Expenses [Member] | 2019 Restructuring Plan [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring Charges | $ 1.6 |
Restructuring Costs - Activity
Restructuring Costs - Activity of Restructuring Costs and Related Accruals (Detail) - 2019 Restructuring Plan [Member] $ in Thousands | 12 Months Ended |
Jan. 30, 2021USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Beginning Balance | $ 255 |
Cash | 132 |
Adjustments | 123 |
Program Costs to Date | 1,597 |
Employee Separation Costs [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Beginning Balance | 216 |
Cash | 131 |
Adjustments | 85 |
Program Costs to Date | 1,402 |
Other [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Beginning Balance | 39 |
Cash | 1 |
Adjustments | 38 |
Program Costs to Date | $ 195 |
Debt - Components of Outstandin
Debt - Components of Outstanding Long term debt (Detail) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Debt Instrument [Line Items] | ||
Term Loan (principal of $5,007 and $237,579, respectively) | $ 4,904 | $ 233,999 |
Subordinated Facility (principal and paid-in kind interest of $15,666) | 3,311 | |
Less: Current portion | (2,799) | (2,799) |
Net long-term debt | 228,712 | $ 231,200 |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Priming Loan (principal of $229,773) | $ 223,296 |
Debt - Components of Outstand_2
Debt - Components of Outstanding Long term debt (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Debt Instrument [Line Items] | ||
Principal amount of term loan | $ 5,007 | $ 237,579 |
Principal and paid-in kind interest | 15,666 | |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of priming loan | $ 229,773 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Millions | Jan. 31, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Sep. 30, 2020 |
Debt Instrument [Line Items] | |||||
Interest expense | $ 15.5 | $ 20.1 | $ 19.9 | $ 2.5 | |
Debt Issuance cost | $ 2.3 | $ 1.5 | $ 1.4 | ||
Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Voluntary prepayment of term loan | $ 5 |
Debt - Term Loan (Detail)
Debt - Term Loan (Detail) - USD ($) $ in Thousands | May 27, 2016 | May 08, 2015 | Sep. 30, 2020 | Jan. 30, 2021 | May 08, 2022 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Debt Instrument [Line Items] | ||||||||
Principal amount of term loan | $ 5,007 | $ 237,579 | ||||||
Debt instrument, basis spread rate | 5.00% | |||||||
Debt instrument, minimum LIBOR | 1.00% | |||||||
Debt instrument, additional basis spread rate | 4.00% | |||||||
Debt instrument, periodic payment term | quarterly | |||||||
Debt instrument, periodic payment maturity date | May 8, 2022 | |||||||
Term Loan (principal of $5,007 and $237,579, respectively) | $ 4,904 | 233,999 | ||||||
Debt instrument modification percentage | 97.90% | |||||||
Debt discount and issuance costs | $ 2,500 | $ 15,500 | $ 20,100 | $ 19,900 | ||||
Forecast | ||||||||
Debt Instrument [Line Items] | ||||||||
Term Loan (principal of $5,007 and $237,579, respectively) | $ 4,900 | |||||||
Debt discount and issuance costs | $ 55 | |||||||
Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, effective percentage | 6.00% | 6.93% | 6.78% | |||||
Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, effective percentage | 6.78% | 7.75% | 7.53% | |||||
Term Loan Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument term | 7 years | |||||||
Principal amount of term loan | $ 250,000 | |||||||
Amendment [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of term loan | $ 40,000 | |||||||
Maximum percentage offer to repurchase existing term loans | 100.00% | |||||||
Existing Term Loan Offers Accepted Percentage | 97.90% |
Debt - Priming Loan (Detail)
Debt - Priming Loan (Detail) $ in Thousands | Aug. 30, 2021USD ($) | Nov. 04, 2020 | Sep. 30, 2020USD ($) | Jan. 30, 2021USD ($)shares | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) |
Debt Instrument [Line Items] | ||||||
Principal amount of term loan | $ 5,007 | $ 237,579 | ||||
Debt instrument, periodic payment maturity date | May 8, 2022 | |||||
Debt instrument, additional basis spread rate | 4.00% | |||||
Debt instrument, basis spread rate | 5.00% | |||||
Debt instrument, minimum LIBOR | 1.00% | |||||
Debt instrument, periodic payment, principal | $ 25,000 | |||||
Minimum liquidity covenant amount | $ 12,750 | |||||
Net leverage ratio | 5.75 | |||||
Limits on capital spending | $ 23,000 | |||||
Stockholders' equity, reverse stock split | 1-for-5 reverse stock split | |||||
Repayments of debt | 2,799 | 7,799 | $ 2,799 | |||
Common stock, par value $0.01 per share; 50,000,000 shares authorized; 9,631,633 and 8,857,625 shares issued and outstanding at January 30, 2021 and February 1, 2020, respectively | 97 | $ 89 | ||||
Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Common stock, par value $0.01 per share; 50,000,000 shares authorized; 9,631,633 and 8,857,625 shares issued and outstanding at January 30, 2021 and February 1, 2020, respectively | 4,750 | |||||
Priming Term Loan Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of term loan | $ 229,800 | |||||
Existing Term Loan Offers Accepted Percentage | 97.90% | |||||
Debt Issuance Cost | $ 1,200 | |||||
Debt instrument, interest rate description | the loans under the Priming Credit Agreement will bear interest at the Company’s election at: (1) Base Rate (as defined in the Priming Credit Agreement) plus 4.00% or (2) LIBOR plus 5.00%, with a minimum LIBOR per annum of 1.00%, with the interest payable on a quarterly basis. | |||||
Debt instrument, periodic payment maturity date | May 8, 2024 | |||||
Debt instrument, minimum LIBOR | 1.00% | |||||
Debt instrument, financial covenant, description | The Priming Credit Agreement also has certain financial covenants, including (1) a minimum liquidity covenant that generally requires minimum liquidity on a weekly basis of $15.0 million, (2) a first lien net leverage ratio that requires compliance beginning in the fourth quarter of Fiscal Year 2021 with a net leverage ratio of 5:1, which reduces over time, and (3) limits on capital expenditures of $20.0 million annually | |||||
Minimum liquidity covenant amount | $ 15,000 | |||||
Net leverage ratio | 5 | |||||
Limits on capital spending | $ 20,000 | |||||
Common shares issued to lenders | shares | 656,717 | |||||
Stockholders' equity, reverse stock split | 1-for-5 stock split | |||||
Issuance of shares value | $ 2,000 | |||||
Repayments of debt | $ 4,900 | |||||
Percentage of fully diluted shares of common stock | 9.79% | |||||
Common stock, par value $0.01 per share; 50,000,000 shares authorized; 9,631,633 and 8,857,625 shares issued and outstanding at January 30, 2021 and February 1, 2020, respectively | $ 500 | |||||
Debt Instrument repayment, Description | On May 31, 2021, the Company will have the choice (the “May 31, 2021 Option”) to either (i) repay $4.9 million in aggregate principal amount of the loans under the Priming Credit Agreement, together with accrued and unpaid interest thereon or (ii) issue additional shares of Common Stock to the Priming Lenders in an amount equal to the greater of (I) 9.79% of the fully diluted shares of Common Stock as of October 1, 2020 less 656,717 shares and (II) a number of shares of Common Stock with an aggregate value of $0.5 million at the time of such issuance; | |||||
Warrants and derivative liabilities | $ 1,400 | |||||
Priming Term Loan Credit Agreement [Member] | Other Expense [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument fair value adjustment | $ 1,000 | |||||
Priming Term Loan Credit Agreement [Member] | Principal paydown less than 15.0 Million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument Paid In Kind Interest Rate Percentage Increase | 5.00% | |||||
Paid In Kind Fee Percentage | 7.50% | |||||
Priming Term Loan Credit Agreement [Member] | Principal paydown less than 15.0 Million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument Paid In Kind Interest Rate Percentage Increase | 2.00% | |||||
Paid In Kind Fee Percentage | 5.00% | |||||
Priming Term Loan Credit Agreement [Member] | Forecast | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, periodic payment, principal | $ 25,000 | |||||
Priming Term Loan Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, additional basis spread rate | 4.00% | |||||
Debt instrument, basis spread rate | 5.00% |
Debt - Subordinated Facility (D
Debt - Subordinated Facility (Detail) - USD ($) $ in Thousands | Nov. 04, 2020 | Sep. 30, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 |
Debt Instrument [Line Items] | |||||
Principal amount of term loan | $ 5,007 | $ 237,579 | |||
Debt discount and issuance costs | $ 2,500 | $ 15,500 | $ 20,100 | $ 19,900 | |
Debt instrument, periodic payment maturity date | May 8, 2022 | ||||
Debt instrument, basis spread rate | 5.00% | ||||
Debt instrument, additional basis spread rate | 4.00% | ||||
Debt instrument, minimum LIBOR | 1.00% | ||||
Minimum liquidity covenant amount | $ 12,750 | ||||
Net leverage ratio | 5.75 | ||||
Limits on capital spending | $ 23,000 | ||||
Stockholders' equity, reverse stock split | 1-for-5 reverse stock split | ||||
Fair value adjustment of warrants - related party | $ 4,214 | ||||
Subordinated facility [member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of term loan | 15,000 | ||||
Debt discount and issuance costs | $ 400 | ||||
Debt instrument, periodic payment maturity date | Nov. 8, 2024 | ||||
Debt instrument, minimum LIBOR | 1.00% | ||||
Debt instrument, interest rate description | Loans under the Subordinated Facility will bear interest at the Borrower’s election at (1) Base Rate (as defined in the Subordinated Facility) plus 11.00% or (2) LIBOR plus 12.00%, with a minimum LIBOR per annum of 1.00% | ||||
Debt instrument, financial covenant, description | The Subordinated Facility also has certain financial covenants, including (1) a minimum liquidity covenant that generally requires minimum liquidity on a weekly basis of $12.75 million, (2) a first lien net leverage ratio that requires compliance beginning in the fourth quarter of Fiscal Year 2021 with a net leverage ratio of 5.75:1, which reduces over time, and (3) limits on capital spending of $23.0 million annually | ||||
Subordinated facility [member] | Penny Warrants | |||||
Debt Instrument [Line Items] | |||||
Common shares issued to lenders | 3,720,109 | ||||
Stockholders' equity, reverse stock split | 1-for-5 stock split | ||||
Debt Instrument, Description | The terms of the warrants include antidilution provisions, including a change to the conversion ratio if the Company chooses to issue additional shares to the Priming Lenders on May 31, 2021 rather than making a principal payment of $4.9 million. We recorded a reduction to the carrying value of the subordinated debt of $11.8 million due to the issuance of the penny warrants | ||||
Reduction in the carrying value of subordinated debt | $ 11,800 | ||||
Fair value adjustment of warrants - related party | $ 4,200 | ||||
Subordinated facility [member] | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread rate | 11.00% | ||||
Debt instrument, additional basis spread rate | 12.00% |
Debt - Asset-Based Revolving Cr
Debt - Asset-Based Revolving Credit Agreement (Detail) - USD ($) | May 08, 2015 | Aug. 31, 2015 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Jul. 01, 2016 | Jan. 30, 2021 |
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread rate | 5.00% | ||||||
Debt Issuance cost | $ 2,300,000 | $ 1,500,000 | $ 1,400,000 | ||||
ABL Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument term | 5 years | ||||||
Credit facility maximum borrowing capacity | $ 40,000,000 | ||||||
Debt instrument, initial maturity date | May 8, 2020 | ||||||
Debt instrument extended maturity date | May 8, 2023 | ||||||
Credit facility maximum borrowing, percentage of eligible credit card receivables | 90.00% | ||||||
Credit facility maximum borrowing, percentage of eligible accounts receivables | 85.00% | ||||||
Credit facility maximum borrowing, percentage lesser of eligible inventory | 100.00% | ||||||
Credit facility maximum borrowing, percentage lesser of eligible net orderly liquidation value of inventory | 90.00% | ||||||
Credit facility maximum borrowing, percentage lesser of eligible in-transit inventory | 100.00% | ||||||
Credit facility maximum borrowing, percentage lesser of eligible net orderly liquidation value of in-transit inventory | 90.00% | ||||||
Credit facility, frequency of payment and payment terms | the in-transit maximum amount (the in-transit maximum amount is not to exceed $9.5 million during the first and third calendar quarters and $7.0 million during the second and fourth calendar quarters) | ||||||
Credit facility, interest rate description | Interest on each LIBOR loan is payable on the last day of each interest period and no more than quarterly, and interest on each Base Rate loan is payable in arrears on the last business day of April, July, October and January. For both LIBOR and Base Rate loans, interest is payable periodically upon repayment, conversion or maturity, with interest periods ranging between 30 to 180 days at the election of the Company, or 12 months with the consent of all lenders. | ||||||
Credit facility commitment fee | 0.375% | ||||||
Credit facility commitment fee, each calendar quarter historical excess availability is greater than 50% | 0.375% | ||||||
Credit facility commitment fee, each calendar quarter historical excess availability is less than or equal 50% | 0.25% | ||||||
Credit facility commitment fee, minimum each calendar quarter historical excess availability | 50.00% | ||||||
Credit facility commitment fee, maximum each calendar quarter historical excess availability | 50.00% | ||||||
Credit Facility drawn or outstanding | $ 11,100,000 | 0 | $ 11,100,000 | ||||
Credit Facility available borrowing capacity | 23,800,000 | 38,300,000 | $ 23,800,000 | ||||
Interest expense | 800,000 | ||||||
Debt Issuance cost | $ 100,000 | $ 200,000 | $ 200,000 | ||||
ABL Facility [Member] | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread rate | 1.00% | 2.00% | |||||
ABL Facility [Member] | London Interbank Offered Rate (LIBOR) | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread rate | 2.25% | ||||||
ABL Facility [Member] | London Interbank Offered Rate (LIBOR) | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread rate | 2.50% | ||||||
ABL Facility [Member] | Federal Funds Effective Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread rate | 0.50% | ||||||
ABL Facility [Member] | Base Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread rate | 2.00% | 1.00% | |||||
ABL Facility [Member] | Base Rate [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread rate | 1.25% | ||||||
ABL Facility [Member] | Base Rate [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread rate | 1.50% | ||||||
ABL Facility [Member] | 1st and 3rd Calendar Quarters [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum in-transit periodic payments | $ 9,500,000 | ||||||
Credit facility in-transit frequency of payments | quarters | ||||||
ABL Facility [Member] | 2nd and 4th Calendar Quarters [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum in-transit periodic payments | $ 7,000,000 | ||||||
Credit facility in-transit frequency of payments | quarters | ||||||
Asset Based Revolving Credit Agreement1 | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility default interest surcharge | 2.00% |
Debt - Letters of Credit (Detai
Debt - Letters of Credit (Detail) - USD ($) | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Debt Instrument [Line Items] | ||
Credit facility outstanding | $ 2,900,000 | |
Credit facility maximum borrowing capacity | 10,000,000 | |
Debt instrument, periodic payment, principal | 25,000,000 | |
tax refund | 25,000,000 | |
Subordinated facility [member] | ||
Debt Instrument [Line Items] | ||
Payment of PIK interest | 10,600,000 | |
Priming Term Loan Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Payment of PIK interest | $ 52,300,000 | |
Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Credit Facility drawn or outstanding | $ 1,700,000 | |
Credit facility initial term | 1 year | |
Letters of credit automatically annually renewal period | 1 year |
Debt - Schedule of Minimum Futu
Debt - Schedule of Minimum Future Principal Amounts Payable Under Outstanding Long-term Debt (Detail) $ in Thousands | Jan. 30, 2021USD ($) |
Debt Instrument [Line Items] | |
2021 | $ 2,799 |
2022 | 7,686 |
2023 | 2,739 |
2024 | 236,556 |
Total | 249,780 |
Term Loan [Member] | |
Debt Instrument [Line Items] | |
2021 | 60 |
2022 | 4,947 |
Total | 5,007 |
Priming Term Loan Credit Agreement [Member] | |
Debt Instrument [Line Items] | |
2021 | 2,739 |
2022 | 2,739 |
2023 | 2,739 |
2024 | 221,556 |
Total | 229,773 |
Subordinated facility [member] | |
Debt Instrument [Line Items] | |
2024 | 15,000 |
Total | $ 15,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) $ in Thousands | Jan. 30, 2021USD ($) |
Carrying Value [Member] | |
Recurring fair value measurements | |
Total recurring fair value measurements | $ 18,433 |
Financial instruments not carried at fair value | |
Total financial instruments not carried at fair value | 231,511 |
Carrying Value [Member] | Warrant [Member] | |
Recurring fair value measurements | |
Total recurring fair value measurements | 15,997 |
Carrying Value [Member] | Derivative [Member] | |
Recurring fair value measurements | |
Total recurring fair value measurements | 2,436 |
Carrying Value [Member] | Debt [Member] | |
Financial instruments not carried at fair value | |
Total financial instruments not carried at fair value | 231,511 |
Level 2 [Member] | |
Recurring fair value measurements | |
Total recurring fair value measurements | 18,433 |
Financial instruments not carried at fair value | |
Total financial instruments not carried at fair value | 220,010 |
Level 2 [Member] | Warrant [Member] | |
Recurring fair value measurements | |
Total recurring fair value measurements | 15,997 |
Level 2 [Member] | Derivative [Member] | |
Recurring fair value measurements | |
Total recurring fair value measurements | 2,436 |
Level 2 [Member] | Debt [Member] | |
Financial instruments not carried at fair value | |
Total financial instruments not carried at fair value | $ 220,010 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Thousands | Feb. 01, 2020USD ($) |
Fair Value Disclosures [Abstract] | |
Financial assets measured at fair value on recurring basis | $ 0 |
Financial liabilities measured at fair value on recurring basis | 0 |
Fair value of debt | $ 200,500 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended |
Jan. 30, 2021Supplier | |
Commitments And Contingencies [Line Items] | |
Number of suppliers | 1 |
Other commitments, description | The Company enters into other cancelable and noncancelable commitments. Typically, these commitments are for less than one year in duration and are principally for the procurement of inventory. Preliminary commitments with the Company’s merchandise vendors are made approximately six months in advance of the planned receipt date. |
Supplier Concentration Risk [Member] | Purchases [Member] | |
Commitments And Contingencies [Line Items] | |
Concentration risk, percentage | 11.10% |
Operating Leases - Additional I
Operating Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 30, 2021 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Leases [Line Items] | ||||
Lessee, operating lease, option to extend | Some retail leases include one or more options to renew, with renewal terms that can extend the lease term from one to fifteen years. The Company’s distribution center has renewal terms that can extend the lease term up to twenty years. | |||
Lessee, operating lease, existence of option to extend | true | |||
Deferred rent payments | $ 2,900 | $ 2,900 | ||
Impairment of long-lived assets | 33,777 | $ 2,325 | $ 0 | |
Withheld rent | 1,900 | 1,900 | ||
Abated rent payments | 7,400 | |||
Common area maintenance expense | 14,200 | 14,400 | $ 14,100 | |
Rental expense | 46,500 | |||
Contingent rental expense | 2,200 | |||
Operating lease liabilities arising from obtaining operating lease assets | 21,000 | |||
Decrease in operating lease liabilities | 800 | |||
Operating leases, cash paid for amounts included in the measurement of operating lease liabilities | 40,100 | 48,000 | ||
Accounting Standards Update 2016-02 | ||||
Leases [Line Items] | ||||
Deferred rent payments | 0 | 0 | ||
Tenant improvement incentive liability | 1,200 | 1,200 | 1,200 | |
Right-of-Use Asset [Member] | ||||
Leases [Line Items] | ||||
Impairment of long-lived assets | $ 2,800 | $ 23,000 | $ 2,000 | |
Minimum [Member] | Retail Stores [Member] | ||||
Leases [Line Items] | ||||
Lessee, operating lease, option to extend lease term | 1 year | 1 year | ||
Maximum [Member] | Retail Stores [Member] | ||||
Leases [Line Items] | ||||
Lessee, operating lease, option to extend lease term | 15 years | 15 years | ||
Maximum [Member] | Distribution Center [Member] | ||||
Leases [Line Items] | ||||
Lessee, operating lease, option to extend lease term | 20 years | 20 years |
Operating Leases - Components o
Operating Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Leases [Line Items] | ||
Total lease cost | $ 45,164 | $ 50,916 |
Selling, General and Administrative Expenses [Member] | ||
Leases [Line Items] | ||
Operating lease cost | 43,824 | 47,482 |
Variable lease cost | $ 1,340 | $ 3,434 |
Operating Leases - Schedule of
Operating Leases - Schedule of Lease Terms and Discount Rate (Detail) | Jan. 30, 2021 | Feb. 01, 2020 |
Leases [Abstract] | ||
Weighted-average remaining lease term (in years), Operating leases | 6 years 6 months | 7 years 2 months 12 days |
Weighted-average discount rate, Operating leases | 6.60% | 6.50% |
Operating Leases - Schedule o_2
Operating Leases - Schedule of Maturities of Lease Liabilities (Detail) $ in Thousands | Jan. 30, 2021USD ($) |
Leases [Abstract] | |
2021 | $ 46,752 |
2022 | 44,001 |
2023 | 41,240 |
2024 | 35,959 |
2025 | 30,799 |
Thereafter | 69,788 |
Less: Imputed interest | 51,550 |
Operating lease liabilities | $ 216,989 |
Operating Leases - Schedule o_3
Operating Leases - Schedule of Maturities of Lease Liabilities (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Leases [Abstract] | |
Minimum operating lease payments for leases signed but not taken possession | $ 0 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Current | |||
U.S. Federal | $ (30,304) | $ 5,636 | $ 11,634 |
State and local | (659) | 2,165 | 4,334 |
Total current | (30,963) | 7,801 | 15,968 |
Deferred tax benefit | |||
U.S. Federal | (13,922) | (8,681) | (3,513) |
State and local | (3,277) | (2,142) | (806) |
Total deferred tax benefit | (17,199) | (10,823) | (4,319) |
Total income tax (benefit) provision | $ (48,162) | $ (3,022) | $ 11,649 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
U.S. Federal corporate income tax rate | 21.00% | 21.00% | 21.00% |
Number of years of higher tax rate net operating loss can be carryback in CARES ACT | 5 years | ||
Restored bonus depreciation for qualified improvement property | 100.00% | ||
Unrecognized Tax Benefits | $ 300,000 | $ 0 | |
Federal [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | 0 | 0 | |
Net operating loss carryforwards | 0 | ||
State [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | 0 | $ 0 | |
Net operating loss carryforwards | $ 5,900 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Statutory Federal Income Tax Rate (Detail) | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal tax effect | 4.90% | 0.30% | 6.30% |
Goodwill impairment | (2.00%) | (19.10%) | 0.00% |
Net operating loss CARES ACT benefit | 5.70% | 0.00% | 0.00% |
Valuation allowance | (2.90%) | 0.00% | 0.00% |
Nondeductible equity-based compensation expense | (0.20%) | 0.10% | 0.30% |
Charitable contributions | 0.10% | 0.10% | (0.60%) |
Tax return to provision adjustments | 0.00% | 0.00% | 0.10% |
Other | (0.90%) | (0.10%) | 0.50% |
Effective tax rate | 25.70% | 2.30% | 27.60% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Assets and (Liabilities) (Detail) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Deferred tax assets | ||
Accrued expenses | $ 7,984 | $ 5,384 |
State net operating loss carryforward | 4,621 | |
Start-up costs | 539 | 618 |
Lease liabilities | 58,768 | 64,068 |
Total deferred tax assets, gross | 71,912 | 70,070 |
Less: Deferred tax valuation allowances | (5,472) | |
Total deferred tax assets net of valuation allowances | 66,440 | 70,070 |
Deferred tax liabilities | ||
Inventory | (1,930) | (2,496) |
Lease assets | (42,785) | (54,721) |
Fixed assets | (11,748) | (15,341) |
Intangible assets | (22,148) | (27,826) |
Debt issuance costs | (415) | |
Prepaid expenses | (1,249) | (720) |
Total deferred tax liabilities | (80,275) | (101,104) |
Net deferred tax liabilities | $ (13,835) | $ (31,034) |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Numerator | |||
Net (loss) income attributable to common shareholders: | $ (139,404) | $ (128,567) | $ 30,525 |
Denominator | |||
Weighted average number of common shares outstanding, basic: | 9,159,686 | 8,749,865 | 8,554,263 |
Dilutive effect of stock options and restricted shares: | 293,687 | ||
Weighted average number of common shares outstanding, diluted: | 9,159,686 | 8,749,865 | 8,847,950 |
Net (loss) income per common share attributable to common shareholders, basic: | $ (15.22) | $ (14.69) | $ 3.57 |
Net (loss) income per common share attributable to common shareholders, diluted: | $ (15.22) | $ (14.69) | $ 3.45 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | Nov. 04, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 |
Earnings Per Share Basic [Line Items] | ||||
Antidilutive equity awards excluded from the computation of diluted earnings per share | 459,452 | 605,055 | 184,485 | |
Stockholders' equity, reverse stock split | 1-for-5 reverse stock split | |||
Effective date of reverse stock split | Nov. 9, 2020 | |||
Penny Warrants | ||||
Earnings Per Share Basic [Line Items] | ||||
Antidilutive equity awards excluded from the computation of diluted earnings per share | 3,720,109 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | Mar. 06, 2019$ / shares | Jan. 30, 2021USD ($)Period$ / sharesshares | Feb. 01, 2020USD ($)$ / sharesshares | Feb. 02, 2019USD ($)$ / sharesshares | Feb. 03, 2018shares | Jan. 28, 2017shares | Apr. 01, 2019USD ($) | Mar. 19, 2019$ / shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Weighted-average grant date fair value | $ / shares | $ 11 | |||||||
Number of units, granted | 159,374 | |||||||
Dividend declared (in dollars per share) | $ / shares | $ 5.75 | $ 5.75 | ||||||
Cash dividend paid | $ | $ 50.2 | |||||||
Dividend declared, date | Mar. 6, 2019 | |||||||
Dividend payable, date | Apr. 1, 2019 | |||||||
Shareholders of record, date | Mar. 19, 2019 | |||||||
Selling, General and Administrative Expenses [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Equity-based compensation expense | $ | $ 2.1 | $ 4.6 | $ 4 | |||||
Purchase Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common shares authorized and available for future issuance | 2,344 | 2,344 | ||||||
Weighted-average grant date fair value | $ / shares | $ 1.90 | $ 8.70 | ||||||
Number of purchase period | Period | 1 | |||||||
Maximum compensation percentage | 10.00% | |||||||
Fair value of common stock purchase price percentage | 85.00% | |||||||
Proceeds from purchases of common stock | $ | $ 0.1 | |||||||
Number of common stock purchases | 27,886 | |||||||
Maximum [Member] | Purchase Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common shares authorized and available for future issuance | 40,000 | |||||||
Omnibus Equity Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common stock reserved for issuance | 913,453 | |||||||
Common shares authorized and available for future issuance | 329,206 | |||||||
Topco [Member] | Incentive Equity Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares issued, restricted stock | 477,000 | |||||||
Restricted Stock | Incentive Equity Plan | Employees [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 5 years | |||||||
Restricted Stock | Omnibus Equity Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of units forfeited | 661 | 33,754 | 28,508 | |||||
Dividend declared (in dollars per share) | $ / shares | $ 5.75 | |||||||
Restricted Stock Units (RSUs) | Omnibus Equity Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Vesting percentage | 25.00% | |||||||
Restricted Stock Units (RSUs) | Employment Inducement Award [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares available for grant | 60,529 | 167,008 | ||||||
Non-qualified Stock Options [Member] | Employment Inducement Award [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares available for grant | 159,374 | |||||||
RSA and RSU [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of units forfeited | 79,443 | 326,136 | 54,908 | |||||
Total unrecognized compensation expense | $ | $ 3.4 | |||||||
Total unrecognized compensation expense to be recognized, weighted average service period | 2 years 3 months 18 days | |||||||
Weighted-average grant date fair value | $ / shares | $ 2.75 | $ 20.90 | $ 23.95 | |||||
Total fair value of restricted stock vested | $ | $ 3.2 | $ 5.1 | $ 0.9 | |||||
Stock Options [Member] | Omnibus Equity Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Total unrecognized compensation expense | $ | $ 0.1 | |||||||
Total unrecognized compensation expense to be recognized, weighted average service period | 3 months 18 days | |||||||
Weighted-average grant date fair value | $ / shares | $ 11 | |||||||
Number of units, granted | 0 | 0 | ||||||
Stock Options [Member] | Omnibus Equity Incentive Plan | Maximum [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Award expiration period | 10 years |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Restricted Stock Activity (Detail) - RSA and RSU [Member] - $ / shares | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Units, Beginning Balance | 489,072 | 576,680 | 353,558 |
Number of Units, Granted | 168,421 | 486,296 | 498,109 |
Number of Units, Vested | (188,764) | (247,768) | (220,079) |
Number of Units, Forfeited | (79,443) | (326,136) | (54,908) |
Number of Units, Ending Balance | 389,286 | 489,072 | 576,680 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ 12.74 | $ 16.05 | $ 3.25 |
Weighted Average Grant Date Fair Value, Granted | 2.75 | 20.90 | 23.95 |
Weighted Average Grant Date Fair Value, Vested | 16.69 | 20.40 | 4.10 |
Weighted Average Grant Date Fair Value, Forfeited | 16.94 | 22.87 | 12.75 |
Weighted Average Grant Date Fair Value, Ending Balance | $ 13.81 | $ 12.74 | $ 16.05 |
Equity-Based Compensation - S_2
Equity-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) | 12 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Number of Options outstanding, Beginning Balance | 20,891 | 209,910 | 53,023 | |
Number of Options, Granted | 159,374 | |||
Number of Options, Forfeited | (1,990) | (189,019) | (2,487) | |
Number of Options outstanding, Ending Balance | 18,901 | 20,891 | 209,910 | |
Number of Options exercisable | 14,176 | |||
Weighted-Average Grant Date Fair Value, Options outstanding, begining Balance | $ 30.16 | $ 15.65 | $ 30.25 | |
Weighted-Average Grant Date Fair Value, Granted | 11 | |||
Weighted-Average Grant Date Fair Value, Forfeited | 30.16 | 14.04 | 30.15 | |
Weighted-Average Grant Date Fair Value, Options outstanding, Ending Balance | 30.15 | 30.16 | 15.65 | |
Weighted-Average Grant Date Fair Value, Options exercisable | 30.15 | |||
Weighted-Average Exercise Price, Options outstanding, Beginning Balance | 59.85 | 34.55 | 66.30 | |
Weighted-Average Exercise Price, Granted | 24.50 | |||
Weighted-Average Exercise Price, Forfeited | 59.85 | 25.39 | 65.60 | |
Weighted-Average Exercise Price, Options outstanding, Ending Balance | 59.85 | $ 59.85 | $ 34.55 | |
Weighted-Average Exercise Price, Options exercisable | $ 59.85 | |||
Weighted-Average Remaining Contractual Terms, Options outstanding | 6 years 3 months 19 days | 7 years 3 months 19 days | 9 years | |
Weighted-Average Remaining Contractual Terms, Options exercisable | 6 years 3 months 19 days | |||
Aggregate-Intrinsic Value, Options outstanding, Beginning Balance | [1] | $ 749,100 | ||
Aggregate-Intrinsic Value, Options outstanding, Ending Balance | [1] | $ 749,100 | ||
[1] | The intrinsic value is the amount by which the market price at the end of the period of the underlying share of stock exceeds the exercise price of the stock option. |
Equity-Based Compensation - Fai
Equity-Based Compensation - Fair Values Estimated Using Black-Scholes Option-Pricing Model (Detail) | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free rate | 2.14% | |
Expected term (in years) | 6 years 3 months | |
Expected volatility | 41.81% | |
Expected dividend yield | 0.00% | |
Purchase Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free rate | 1.59% | 2.63% |
Expected term (in years) | 1 year | 1 year |
Expected volatility | 45.11% | 42.54% |
Expected dividend yield | 0.00% | 0.00% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Jan. 30, 2021USD ($) | |
Related Party Transaction [Line Items] | |
Interest expense, net - related party | $ 534 |
Fair value adjustment of warrants - related party | 4,214 |
TowerBrook Capital Partners L.P [Member] | |
Related Party Transaction [Line Items] | |
Interest expense, net - related party | 500 |
Fair value adjustment of warrants - related party | 4,200 |
Professional Fees for advisors | $ 3,300 |
Barter Arrangement - Additional
Barter Arrangement - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Selling, General and Administrative Expenses [Member] | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Media credit recorded as expense | $ 1.9 | |
ASU 2014-09 [Member] | Advertising Barter Transactions [Member] | Evergreen Trading [Member] | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Transfer of inventory against media credit | $ 0.7 | |
Media credit valued | 2 | |
Gain recorded upon shipment of inventory | $ 1.3 |