Cover
Cover - shares | 9 Months Ended | |
Oct. 31, 2021 | Dec. 07, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38555 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0514958 | |
Entity Address, Address Line One | Two Landmark Square | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Stamford | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06901 | |
City Area Code | 888 | |
Local Phone Number | 636-1223 | |
Title of 12(b) Security | Common Stock, $0.00001 par value per share | |
Trading Symbol | LOVE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 15,123,084 | |
Entity Registrant Name | THE LOVESAC COMPANY | |
Amendment Flag | false | |
Entity Central Index Key | 0001701758 | |
Current Fiscal Year End Date | --01-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 47,862 | $ 78,341 |
Trade accounts receivable | 9,794 | 4,513 |
Merchandise inventories | 94,544 | 50,417 |
Prepaid expenses and other current assets | 11,421 | 10,128 |
Total Current Assets | 163,621 | 143,399 |
Property and equipment, net | 32,133 | 25,868 |
Operating lease right-of-use assets | 95,567 | 0 |
Other Assets | ||
Goodwill | 144 | 144 |
Intangible assets, net | 1,345 | 1,517 |
Deferred financing costs, net | 23 | 91 |
Total Other Assets | 1,512 | 1,752 |
Total Assets | 292,833 | 171,019 |
Current Liabilities | ||
Accounts payable | 25,430 | 24,311 |
Accrued expenses | 23,427 | 17,187 |
Payroll payable | 7,865 | 6,362 |
Customer deposits | 6,704 | 5,993 |
Current operating lease liabilities | 15,722 | 0 |
Sales taxes payable | 2,430 | 2,471 |
Total Current Liabilities | 81,578 | 56,324 |
Deferred Rent | 0 | 6,749 |
Operating Lease Liabilities, long-term | 90,658 | 0 |
Line of Credit | 0 | 0 |
Total Liabilities | 172,236 | 63,073 |
Stockholders’ Equity | ||
Preferred Stock $0.00001 par value, 10,000,000 shares authorized, no shares issued or outstanding as of October 31, 2021 and January 31, 2021. | 0 | 0 |
Common Stock $.00001 par value, 40,000,000 shares authorized, 15,122,882 shares issued and outstanding as of October 31, 2021 and 15,011,556 shares issued and outstanding as of January 31, 2021. | 0 | 0 |
Additional paid-in capital | 170,773 | 171,382 |
Accumulated deficit | (50,176) | (63,436) |
Stockholders’ Equity | 120,597 | 107,946 |
Total Liabilities and Stockholders’ Equity | $ 292,833 | $ 171,019 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Oct. 31, 2021 | Jan. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 15,122,882 | 15,011,556 |
Common stock, shares outstanding | 15,122,882 | 15,011,556 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Nov. 01, 2020 | Oct. 31, 2021 | Nov. 01, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 116,678 | $ 74,742 | $ 302,041 | $ 191,060 |
Cost of merchandise sold | 58,062 | 33,434 | 138,317 | 91,413 |
Gross profit | 58,616 | 41,308 | 163,724 | 99,647 |
Operating expenses | ||||
Selling, general and administration expenses | 38,087 | 25,945 | 104,191 | 75,160 |
Advertising and marketing | 15,832 | 10,975 | 39,548 | 26,337 |
Depreciation and amortization | 1,726 | 1,854 | 5,748 | 5,034 |
Total operating expenses | 55,645 | 38,774 | 149,487 | 106,531 |
Operating income (loss) | 2,971 | 2,534 | 14,237 | (6,884) |
Interest expense, net | (45) | (44) | (135) | (22) |
Net income (loss) before taxes | 2,926 | 2,490 | 14,102 | (6,906) |
Provision for income taxes | (174) | (11) | (842) | (70) |
Net income (loss) | $ 2,752 | $ 2,479 | $ 13,260 | $ (6,976) |
Net income (loss) per common share: | ||||
Basic (in dollars per share) | $ 0.18 | $ 0.17 | $ 0.88 | $ (0.48) |
Diluted (in dollars per share) | $ 0.17 | $ 0.16 | $ 0.83 | $ (0.48) |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 15,146,890 | 14,561,835 | 15,092,844 | 14,520,282 |
Diluted (in shares) | 16,069,729 | 15,581,487 | 16,015,683 | 14,520,282 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Accumulated Deficit |
Balance (in shares) at Feb. 02, 2020 | 14,472,611 | |||
Balance at Feb. 02, 2020 | $ 90,155 | $ 0 | $ 168,318 | $ (78,163) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (8,348) | (8,348) | ||
Equity based compensation | 898 | 898 | ||
Issuance of common stock for restricted stock (in shares) | 35,776 | |||
Taxes paid for net share settlement of equity awards | (150) | (150) | ||
Balance (in shares) at May. 03, 2020 | 14,508,387 | |||
Balance at May. 03, 2020 | 82,555 | $ 0 | 169,066 | (86,511) |
Balance (in shares) at Feb. 02, 2020 | 14,472,611 | |||
Balance at Feb. 02, 2020 | $ 90,155 | $ 0 | 168,318 | (78,163) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of warrants (in shares) | 0 | |||
Balance (in shares) at Nov. 01, 2020 | 14,683,138 | |||
Balance at Nov. 01, 2020 | $ 85,252 | $ 0 | 170,391 | (85,139) |
Balance (in shares) at May. 03, 2020 | 14,508,387 | |||
Balance at May. 03, 2020 | 82,555 | $ 0 | 169,066 | (86,511) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (1,107) | (1,107) | ||
Equity based compensation | 677 | 677 | ||
Issuance of common stock for restricted stock (in shares) | 19,192 | |||
Taxes paid for net share settlement of equity awards | (306) | (306) | ||
Balance (in shares) at Aug. 02, 2020 | 14,527,579 | |||
Balance at Aug. 02, 2020 | 81,819 | $ 0 | 169,437 | (87,618) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 2,479 | 2,479 | ||
Equity based compensation | 1,063 | 1,063 | ||
Issuance of common stock for restricted stock (in shares) | 18,725 | |||
Exercise of warrants (in shares) | 136,834 | |||
Taxes paid for net share settlement of equity awards | (109) | (109) | ||
Balance (in shares) at Nov. 01, 2020 | 14,683,138 | |||
Balance at Nov. 01, 2020 | 85,252 | $ 0 | 170,391 | (85,139) |
Balance (in shares) at Jan. 31, 2021 | 15,011,556 | |||
Balance at Jan. 31, 2021 | 107,946 | $ 0 | 171,382 | (63,436) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 2,061 | 2,061 | ||
Equity based compensation | 655 | 655 | ||
Issuance of common stock for restricted stock (in shares) | 4,868 | |||
Exercise of warrants (in shares) | 2,106 | |||
Exercise of Warrants | 20 | 20 | ||
Balance (in shares) at May. 02, 2021 | 15,018,530 | |||
Balance at May. 02, 2021 | 110,682 | $ 0 | 172,057 | (61,375) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 8,447 | 8,447 | ||
Equity based compensation | 1,085 | 1,085 | ||
Issuance of common stock for restricted stock (in shares) | 78,446 | |||
Exercise of warrants (in shares) | 8,850 | |||
Exercise of Warrants | 84 | 84 | ||
Taxes paid for net share settlement of equity awards | (3,370) | (3,370) | ||
Balance (in shares) at Aug. 01, 2021 | 15,105,826 | |||
Balance at Aug. 01, 2021 | 116,928 | $ 0 | 169,856 | (52,928) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 2,752 | 2,752 | ||
Equity based compensation | 1,110 | 1,110 | ||
Issuance of common stock for restricted stock (in shares) | 17,056 | |||
Taxes paid for net share settlement of equity awards | (193) | (193) | ||
Balance (in shares) at Oct. 31, 2021 | 15,122,882 | |||
Balance at Oct. 31, 2021 | $ 120,597 | $ 0 | $ 170,773 | $ (50,176) |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2021 | Nov. 01, 2020 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ 13,260 | $ (6,976) |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Depreciation and amortization of property and equipment | 5,121 | 4,604 |
Amortization of other intangible assets | 627 | 430 |
Amortization of deferred financing fees | 68 | 65 |
Net loss on disposal of property and equipment | 0 | 5 |
Equity based compensation | 2,850 | 2,639 |
Deferred rent | 0 | 3,280 |
Non-cash operating lease cost | 11,003 | 0 |
Impairment of right of use lease asset | 554 | 0 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (5,281) | (42) |
Merchandise inventories | (44,127) | (21,358) |
Prepaid expenses and other current assets | 1,166 | (2,803) |
Accounts payable and accrued expenses | 9,265 | 17,070 |
Operating lease liabilities | (10,396) | 0 |
Customer deposits | 711 | 10,015 |
Net Cash (Used in) Provided by Operating Activities | (15,179) | 6,929 |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (11,386) | (6,671) |
Payments for patents and trademarks | (455) | (497) |
Net Cash Used in Investing Activities | (11,841) | (7,168) |
Cash Flows from Financing Activities | ||
Taxes paid for net share settlement of equity awards | (3,563) | (564) |
Proceeds from the exercise of warrants | 104 | 0 |
Payment of deferred financing costs | 0 | (50) |
Net Cash Used in Financing Activities | (3,459) | (614) |
Net Change in Cash and Cash Equivalents | (30,479) | (853) |
Cash and Cash Equivalents - Beginning | 78,341 | 48,539 |
Cash and Cash Equivalents - Ending | 47,862 | 47,686 |
Supplemental Cash Flow Disclosures | ||
Cash paid for taxes | 775 | 70 |
Cash paid for interest | $ 80 | $ 62 |
Basis of Presentation, Operatio
Basis of Presentation, Operations and Liquidity | 9 Months Ended |
Oct. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation, Operations and Liquidity | BASIS OF PRESENTATION, OPERATIONS AND LIQUIDITY The condensed consolidated balance sheet of The Lovesac Company (the “Company”, “we”, “us” or “our”) as of January 31, 2021, which has been derived from our audited financial statements as of and for the 52-week year ended January 31, 2021, and the accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. Certain information and note disclosures normally included in annual financial statements, prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), have been condensed or omitted pursuant to those rules and regulations. The financial information presented herein, which is not necessarily indicative of results to be expected for the full current fiscal year, reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the interim unaudited condensed consolidated financial statements. Such adjustments are of a normal, recurring nature. These condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements filed in its Annual Report on Form 10-K for the fiscal year ended January 31, 2021. Due to the seasonality of the Company’s business, with the majority of our activity occurring in the fourth quarter of each fiscal year, the results of operations for the thirteen and thirty-nine weeks ended October 31, 2021 and November 1, 2020 are not necessarily indicative of results to be expected for the full fiscal year. Nature of Operations The Company is a technology driven company that designs, manufactures and sells unique, high quality furniture derived through its proprietary “Designed for Life” approach which results in products that are built to last a lifetime and designed to evolve as our customers’ lives do. The Company markets and sells its products through modern and efficient showrooms and, increasingly, through online sales directly at www.lovesac.com, supported by direct-to-consumer touch-feel points in the form of our own showrooms, which include our newly created mobile concierge and kiosks, as well as through shop-in-shops and online pop-up-shops with third party retailers. The Company was formed as a Delaware corporation on January 3, 2017, in connection with a corporate reorganization with SAC Acquisition LLC, a Delaware limited liability company (“SAC LLC”), the predecessor entity to the Company. COVID-19 In March 2020, the World Health Organization declared the outbreak of COVID-19 as a global pandemic and, in the following weeks, the U.S. federal, state and local governments issued lockdown orders and related safety measures impacting the operations of our showrooms and consumer demand. Although there has been a general improvement in conditions, there continues to be significant uncertainties around the scope and severity of the pandemic, its impact on the global economy, including supply chains, and other business disruptions that may impact our operating results and financial condition. We continue to follow the guidance issued by federal, state and local governments and health organizations and have taken measures to protect the safety of our associates and customers. Operations and Liquidity The Company had incurred significant operating losses and used cash in its operating activities since inception through fiscal 2020. Operating losses resulted from inadequate sales levels for the cost structure and expenses as a result of impact of tariffs on inventory, expanding into new markets, opening new showrooms, and investments into advertising, marketing and infrastructure to support increases in revenues. The Company plans to continue to open new retail showrooms in larger markets and increase its shop-in-shop relationships to increase sales levels invest in advertising and marketing initiatives to increase brand awareness and invest in infrastructure to support growth of the Company. There can be no assurance that anticipated sales levels will be achieved. The Company believes that based on its current sales and expense levels, projections for the next twelve months, current cash on hand and the credit facility with Wells Fargo Bank, National Association, see Note 7, the Company will have sufficient working capital to cover operating cash needs through the twelve-month period from the financial statement issuance date. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Oct. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Except as described below, the Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its financial statements. The Company, as an emerging growth company, has elected to use the extended transition period for complying with new or revised financial accounting standards. The following new accounting pronouncement was adopted in fiscal 2022: In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) amending lease guidance to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU No. 2020-05 extended the effective date to fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2021, with early adoption permitted. The Company adopted the guidance in fiscal 2022 and there was not a material effect on the Company’s consolidated results of operations. Adoption of this standard resulted in the recognition of operating lease right-to-use (“ROU”) assets and corresponding lease liabilities of approximately $90 million and $97 million, respectively, and reclassification of deferred rent of $6.7 million as a reduction of the right-of-use assets on the consolidated balance sheet as of February 1, 2021. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, The Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company also elected the practical expedient to not separate lease and non-lease components for all of our leases. |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Oct. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | INTANGIBLE ASSETS, NET A summary of intangible assets follows: October 31, 2021 (amounts in thousands) Estimated Life Gross Carrying Amount Accumulated Amortization Net carrying amount Patents 10 years $ 2,717 $ (1,581) $ 1,136 Trademarks 3 years 1,365 (1,156) 209 Other intangibles 5 years 840 (840) — Total $ 4,922 $ (3,577) $ 1,345 January 31, 2021 (amounts in thousands) Estimated Life Gross Carrying Amount Accumulated Amortization Net carrying amount Patents 10 years $ 2,387 $ (1,129) $ 1,258 Trademarks 3 years 1,239 (981) 258 Other intangibles 5 years 840 (840) — Total $ 4,466 $ (2,950) $ 1,516 Amortization expense associated with intangible assets subject to amortization is included in depreciation and amortization expense on the accompanying condensed consolidated statements of operations. Amortization expense on other intangible assets was $0.1 million and $0.6 million and $0.3 million and $0.4 million for the thirteen and thirty-nine weeks ended October 31, 2021 and November 1, 2020, respectively. As of October 31, 2021, estimated future amortization expense associated with intangible assets subject to amortization is as follows: (amounts in thousands) Remainder of Fiscal 2022 $ 73 2023 219 2024 202 2025 160 2026 141 2027 140 Thereafter 410 $ 1,345 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company continues to provide a full valuation allowance against its net deferred tax assets due to the uncertainty as to when business conditions will improve sufficiently to enable it to utilize its deferred tax assets. As a result, the Company did not record a federal or state tax benefit on its operating losses for the thirteen and thirty-nine weeks ended October 31, 2021 and November 1, 2020. The Company does not anticipate any material adjustments relating to unrecognized tax benefits within the next twelve months; however, the ultimate outcome of tax matters is uncertain and unforeseen results can occur. We had no material interest or penalties during the thirteen and thirty-nine weeks ended October 31, 2021 and November 1, 2020, respectively, and we do not anticipate any such items during the next twelve months. Our policy is to record interest and penalties directly related to uncertain tax positions as income tax expense in the condensed consolidated statements of operations. |
Basic and Diluted Net Income (L
Basic and Diluted Net Income (Loss) Per Common Share | 9 Months Ended |
Oct. 31, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income (Loss) Per Common Share | NOTE 5 – BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding and common stock equivalents outstanding during the period. Diluted net income (loss) per common share includes, in periods in which they are dilutive, the effect of those potentially dilutive securities where the average market price of the common stock exceeds the exercise prices for the respective periods. For the thirteen and thirty-nine weeks ended October 31, 2021, the effects of 518,262 shares of common stock related to restricted stock units, 495,366 shares of common stock underlying stock options and warrants to purchase 281,750 shares of common stock were included in the diluted share calculation. For the thirteen weeks ended November 1, 2020, there were 495,366 shares of common stock underlying stock options of potentially dilutive shares which may be issued in the future that were excluded from the diluted net income per share calculation because the effect of including these potentially dilutive shares was antidilutive. For the thirty-nine weeks ended November 1, 2020, there were 1,973,607 of potentially dilutive shares which may be issued in the future, including 685,743 shares of common stock related to restricted stock units, 495,366 shares of common stock underlying stock options and warrants to purchase 792,498 shares of common stock. These were excluded from the diluted loss per share calculation in the thirteen and thirty-nine weeks ended November 1, 2020, because the effect of including these potentially dilutive shares was antidilutive. |
Commitments, Contingency and Re
Commitments, Contingency and Related Parties | 9 Months Ended |
Oct. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingency and Related Parties | COMMITMENTS, CONTINGENCY AND RELATED PARTIES Leases The Company leases its office, warehouse facilities and retail showrooms under operating lease agreements which expire at various dates through January 2032. The Company determines if a contract contains a lease at inception based on our right to control the use of an identified asset and our right to obtain substantially all of the economic benefits from the use of that identified asset. Certain operating leases have renewal options and rent escalation clauses. We assess these options to determine if we are reasonably certain of exercising these options based on all relevant economic and financial factors. Any options that meet these criteria are included in the lease term at lease commencement. Lease right-of-use assets represent the right to use an underlying asset pursuant to the lease for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Lease right-of-use assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate generally applicable to the location of the lease right-of-use asset, unless an implicit rate is readily determinable. We combine lease and certain non-lease components for our showroom real estate leases in determining the lease payments subject to the initial present value calculation. Lease right-of-use assets include upfront lease payments and exclude lease incentives, where applicable. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. Lease expense for operating leases consists of both fixed and variable components. Expense related to fixed lease payments are recognized on a straight-line basis over the lease term. Variable lease payments are generally expensed as incurred, where applicable, and include certain index-based changes in rent, certain non-lease components, such as maintenance and other services provided by the lessor, and other charges included in the lease. Leases with an initial term of twelve months or less are not recorded on the balance sheet. In addition, certain of our equipment lease agreements include variable lease payments, which are based on the usage of the underlying asset. The variable portion of payments are not included in the initial measurement of the asset or lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. ASC 842 requires companies to use the rate implicit in the lease whenever that rate is readily determinable and if the interest rate is not readily determinable, then a lessee may use its incremental borrowing rate. Most of our leases do not have an interest rate implicit in the lease. As a result, for purposes of measuring our ROU asset and lease liability, we determined our incremental borrowing rate by computing the rate of interest that we would have to pay to (i) borrow on a collateralized basis (ii) over a similar term (iii) at an amount equal to the total lease payments and (iv) in a similar economic environment. We used the incremental borrowing rates we determined as of February 1, 2021 for operating leases that commenced prior to that date. In the case an interest rate is implicit in a lease we will use that rate as the discount rate for that lease. The lease term for all of our lease arrangements include the noncancelable period of the lease plus, if applicable, any additional periods covered by an option to extend the lease that is reasonably certain to be exercised by the Company. Our leases generally do not include termination options for either party to the lease or restrictive financial or other covenants. Some of our leases contain variable lease payments based on a Consumer Price Index or percentage of sales, which are excluded from the measurement of the lease liability. The Company’s lease terms and rates are as follows: October 31, Weighted average remaining lease term (in years) Operating Leases 7.1 Weighted average discount rate Operating Leases 3.85 % During the thirteen and thirty-nine weeks ended October 31, 2021, we recognized operating lease expense of $4.9 million and $13.9 million, respectively. In addition, during the thirteen and thirty-nine weeks ended October 31, 2021, we recognized $2.9 million and $7.3 million, respectively, for index-based changes in rent, maintenance, real estate taxes, insurance and other charges included in the lease as well as rental expenses related to short term leases. During the thirty-nine weeks ended October 31, 2021, we recognized impairment charges totaling $0.6 million associated with showroom-level ROU assets that are included as part of selling, general and administrative expenses. We did not recognize any impairment charges associated with showroom-level ROU assets during the thirteen weeks ended October 31, 2021 or during fiscal year 2021 as we did not adopt the guidance in ASU No. 2016-02, Leases (Topic 842) until fiscal year 2022. The following table discloses the location and amount of our operating lease costs within our condensed consolidated balance sheets: (amounts in thousands) Balance sheet location October 31, Assets Operating leases Operating lease right-of-use assets (non-current) $ 95,567 Liabilities Current: Operating leases Current operating lease liabilities 15,722 Noncurrent: Operating leases Operating lease liability, long term 90,658 Total lease liabilities $ 106,380 The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable leases with terms of more than one year to the total lease liabilities recognized on the condensed consolidated balance sheet as of October 31, 2021 in thousands: (amounts in thousands) Remainder 2022 $ 3,382 2023 19,264 2024 18,590 2025 17,440 2026 15,801 Thereafter 48,408 Total undiscounted future minimum lease payments 122,885 Less: imputed interest (16,505) Total present value of lease obligations 106,380 Less: current operating lease liability (15,722) Operating lease liability- long term $ 90,658 Supplemental Cash Flow information and non-cash activity related to our operating leases is as follows (in thousands): (amounts in thousands) For the thirty-nine weeks ended October 31, 2021 Operating cash flow information: Amounts paid on operating lease liabilities $ 10,396 Non-cash activities Right-of-use assets obtained in exchange for lease obligations $ 106,415 Severance Contingency The Company has various employment agreements with its senior level executives. A number of these agreements have severance provisions, ranging from 12 to 18 months of salary, in the event those employees are terminated without cause. The total amount of exposure to the Company under these agreements was $5.1 million at October 31, 2021 if all executives with employment agreements were terminated without cause and the full amount of severance was payable. Legal Contingency The Company is involved in various legal proceedings in the ordinary course of business. Management cannot presently predict the outcome of these matters, although management believes, based in part on the advice of counsel, that the ultimate resolution of these matters will not have a materially adverse effect on the Company’s condensed consolidated financial position, results of operations or cash flows. Related Parties Our equity sponsor Mistral Capital Management, LLC (“Mistral”) performed management services for the Company under a contractual agreement that ended on January 31, 2021. One of our directors is a member and principal of Mistral. Management fees totaled approximately $0.1 million and $0.3 million for the thirteen and thirty-nine weeks ended November 1, 2020, respectively, and are included in selling, general and administrative expenses. There were no amounts payable to Mistral as of October 31, 2021. Amounts payable to Mistral as of January 31, 2021 were less than $0.1 million related to reimbursable fees and were included in accrued liabilities in the accompanying condensed consolidated balance sheets. Our equity sponsor Satori Capital, LLC (“Satori”) performed management services for the Company under a contractual agreement that ended on January 31, 2021. One of our directors is a partner at Satori. Management fees totaled less than $0.1 million for the thirteen and thirty-nine weeks ended November 1, 2020, respectively, and are included in selling, general and administrative expenses. There were no amounts payable to Satori as of October 31, 2021. Amounts payable to Satori as of January 31, 2021 were less than $0.1 million consisting of management fees which were included in accounts payable and accrued liabilities in the accompanying condensed consolidated balance sheets. In addition, the Company reimbursed Satori for expenses incurred for less than $0.1 million for out-of-pocket expenses for the thirty-nine weeks ended November 1, 2020. There were no such reimbursements for the thirty-nine weeks ended October 31, 2021. There were no such reimbursements during the thirteen weeks ended October 31, 2021 and November 1, 2020, respectively. |
Financing Arrangements
Financing Arrangements | 9 Months Ended |
Oct. 31, 2021 | |
Line of Credit Facility [Abstract] | |
Financing Arrangements | FINANCING ARRANGEMENTS The Company has a line of credit with Wells Fargo Bank, National Association (“Wells”). The line of credit with Wells allows the Company to borrow up to $25.0 million and will mature in February 2023. Borrowings are limited to 90% of eligible credit card receivables plus 85% of eligible wholesale receivables plus 85% of the net recovery percentage for the eligible inventory multiplied by the value of such eligible inventory of the Company for the period from December 16 of each year until October 14 of the immediately following year, with a seasonal increase to 90% of the net recovery percentage for the period from October 15 of each year until December 15 of such year, seasonal advance rate, minus applicable reserves established by Wells. As of October 31, 2021 and January 31, 2021, the Company’s borrowing availability under the line of credit with Wells was $22.5 million and $15.9 million, respectively. As of October 31, 2021 and January 31, 2021, there were no borrowings outstanding on this line of credit. Under the line of credit with Wells, the Company may elect that revolving loans bear interest at a rate per annum equal to the base rate plus the applicable margin or the LIBOR rate plus the applicable margin. The applicable margin is based on tier’s relating to the quarterly average excess availability. The tiers range from 2.00% to 2.25% The loan agreement calls for certain covenants including a timing of the financial statement’s threshold and a minimum excess availability threshold. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Oct. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Common Stock Warrants The following represents warrant activity during the thirty-nine weeks ended October 31, 2021 and November 1, 2020: Average exercise Number of warrants Weighted average remaining Warrants Outstanding at February 2, 2020 $ 16.83 1,039,120 1.93 Warrants issued — — 0 Expired and canceled — — 0 Exercised 16.00 (246,622) 0.71 Outstanding at November 1, 2020 $ 17.14 792,498 1.38 Warrants Outstanding at January 31, 2021 $ 19.07 293,973 2.57 Warrants issued — — 0 Expired and canceled 9.83 (98) 0 Exercised 16.00 (12,125) 0.09 Outstanding at October 31, 2021 $ 19.20 281,750 1.66 In the thirty-nine weeks ended October 31, 2021, a total of 5,625 warrants were exercised on a cashless basis, whereby the holders received fewer shares of common stock in lieu of a cash payment to the Company. Warrants exercised in the thirty-nine weeks ended October 31, 2021 resulted in the issuance of 10,956 common shares. There were 98 warrants that expired in the thirty-nine weeks ended October 31, 2021. Equity Incentive Plan The Company adopted the 2017 Equity Incentive Plan (the “2017 Equity Plan”) which provides for awards in the form of stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance shares, performance units, cash-based awards and other stock-based awards. All awards shall be granted within 10 years from the effective date of the 2017 Equity Plan. The number of shares of common stock reserved for issuance under the 2017 Equity Plan was 2,104,889 at October 31, 2021. Stock Options In June 2019, the Company granted 495,366 non-statutory stock options to certain officers of the Company with an option price of $38.10 per share. 100% of the stock options are subject to vesting on the third anniversary of the date of grant if the officers are still employed by the Company and the average closing price of the Company’s common stock for the prior 40 consecutive trading days has been at least $75 by the third anniversary of the grant. Both the employment and the market condition must be satisfied no later than June 5, 2024 or the options will terminate. These options were valued using a Monte Carlo simulation model to account for the path dependent market conditions that stipulate when and whether or not the options shall vest. The 495,366 stock options were modified in fiscal 2021 to extend the term of the options through June 5, 2024. This resulted in additional compensation of approximately $0.9 million of which, $0.3 million was recorded upon modification and the remaining expense to be recognized over the remaining expected term. The market condition was met on June 5, 2021, which was the date on which the average closing price of the Company’s common stock had been at least $75 for 40 consecutive trading days. The options will vest and become exercisable on June 5, 2022 as long as the officers are still employed on that date. As a result of the market condition being met, the Company accelerated the amortization and recognized additional stock-based compensation expense during the thirteen and thirty-nine weeks ended October 31, 2021 of approximately $0.4 million and $0.5 million, respectively. A summary of the status of our stock options as of October 31, 2021 and November 1, 2020, and the changes during the thirty-nine weeks ended October 31, 2021 and November 1, 2020 is presented below: Number of options Weighted average exercise price Weighted average remaining contractual life (in years) Average intrinsic value Outstanding at February 2, 2020 495,366 $ 38.10 2.34 — Exercised — Expired and canceled — Outstanding at November 1, 2020 495,366 $ 38.10 3.59 — Exercisable at the end of the period — — — — Number of options Weighted average exercise price Weighted average remaining contractual life (in years) Average intrinsic value Outstanding at January 31, 2021 495,366 $ 38.10 3.35 — Granted — — Canceled and forfeited — — Outstanding at October 31, 2021 495,366 $ 38.10 2.60 $ 27.08 Exercisable at the end of the period — — — — Restricted Stock Units A summary of the status of our unvested restricted stock units as of October 31, 2021 and November 1, 2020, and changes during the thirty-nine weeks then ended, is presented below: Number of shares Weighted average grant date fair value Unvested at February 2, 2020 183,053 $ 21.34 Granted 611,086 17.83 Forfeited (3,078) 15.27 Vested (105,318) 15.83 Unvested at November 1, 2020 685,743 $ 19.19 Number of shares Weighted average grant date fair value Unvested at January 31, 2021 655,558 $ 18.86 Granted 75,656 76.91 Forfeited (39,503) 20.52 Vested (173,449) 19.54 Unvested at October 31, 2021 518,262 $ 26.57 Equity based compensation expense was approximately $1.1 million and $2.9 million for the thirteen and thirty-nine weeks ended October 31, 2021 and $1.1 million and $2.6 million and for the thirteen and thirty-nine weeks ended November 1, 2020, respectively. The total unrecognized equity-based compensation cost related to unvested restricted stock awards was approximately $5.2 million as of October 31, 2021 and will be recognized in operations over a weighted average period of 1.82 years. |
Employee Benefit Plan
Employee Benefit Plan | 9 Months Ended |
Oct. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | EMPLOYEE BENEFIT PLANIn February 2017, the Company established the TLC 401(k) Plan (the “401(k) Plan”) with Elective Deferrals beginning May 1, 2017. The 401(k) Plan calls for Elective Deferral Contributions, Safe Harbor Matching Contributions and Profit-Sharing Contributions. All associates of the Company will be eligible to participate in the 401(k) Plan as of the day of the month which is coincident with or next follows the date on which they attain age 21 and complete one month of service. Participants will be able to contribute up to 100% of their eligible compensation to the 401(k) Plan subject to limitations with the IRS. The Company's contributions to the 401(k) Plan were $0.2 million and $0.6 million for the thirteen weeks and the thirty-nine weeks ended October 31, 2021 and $0.1 million and $0.3 million for the thirteen and thirty-nine weeks ended November 1, 2020, respectively. |
Segment Information
Segment Information | 9 Months Ended |
Oct. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATIONThe Company has determined that the Company operates within a single reporting segment. The chief operating decision makers of the Company are the Chief Executive Officer and President. The Company’s operating segments are aggregated for financial reporting purposes because they are similar in each of the following areas including economic characteristics, class of consumer, nature of products and distribution method and products are a singular group of products which make up over 95% of net sales. Thirteen weeks ended Thirty-nine weeks ended October 31, November 1, October 31, November 1, (amounts in thousands) Sactionals $ 100,374 $ 63,303 $ 263,558 $ 160,655 Sacs 14,195 10,197 33,053 27,723 Other 2,109 1,242 5,430 2,682 $ 116,678 $ 74,742 $ 302,041 $ 191,060 |
Barter Arrangements
Barter Arrangements | 9 Months Ended |
Oct. 31, 2021 | |
Barter Arrangements [Abstract] | |
Barter Arrangements | BARTER ARRANGEMENTS The Company has a bartering arrangement with a third-party vendor, whereby the Company provides inventory in exchange for media credits. The Company exchanged $0.6 million and $1.1 million of inventory plus the cost of freight for certain media credits for the thirty-nine weeks ended October 31, 2021 and November 1, 2020, respectively. During the thirteen weeks ended October 31, 2021 and November 1, 2020, the Company exchanged $0.6 million and $0.4 million of inventory for certain media credits, respectively. The Company had $2.0 million and $2.5 million of unused media credits remaining as of October 31, 2021 and January 31, 2021, respectively, which is included in “Prepaid and other current assets” on the accompanying condensed consolidated balance sheet. The Company accounts for barter transactions under ASC Topic No. 845 “Nonmonetary Transactions.” Barter transactions with commercial substance are recorded at the estimated fair value of the products exchanged, unless the products received have a more readily determinable estimated fair value. Revenue associated with barter transactions is recorded at the time of the exchange of the related assets. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Oct. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION The Company’s revenue consists substantially of product sales. The Company reports product sales net of discounts and recognizes them at the point in time when control transfers to the customer, which occurs when shipment is confirmed. Estimated refunds for returns and allowances are recorded using our historical return patterns, adjusting for any changes in returns policies. The Company records estimated refunds for net sales returns on a monthly basis as a reduction of net sales and cost of sales on the condensed consolidated statement of operations and an increase in inventory and customers returns liability on the condensed consolidated balance sheet. As of October 31, 2021 and January 31, 2021, there was a returns allowance recorded on the condensed consolidated balance sheet in the amount of $1.6 million and $2.2 million respectively, which was included in accrued expenses and $0.3 million and $0.3 million respectively, associated with sales returns included in merchandise inventories. In some cases, deposits are received before the Company transfers control, resulting in contract liabilities. These contract liabilities are reported as deposits on the Company’s condensed consolidated balance sheet. As of October 31, 2021 and January 31, 2021, the Company recorded under customer deposit liabilities the amount of $6.7 million and $6.0 million respectively. During the thirty-nine weeks ended October 31, 2021 and November 1, 2020, the Company recognized approximately $6.0 million and $1.7 million respectively, related to our customer deposits. Upon adoption of ASC 606, we have elected the following accounting policies and practical expedients: The Company recognizes shipping and handling expense as fulfillment activities (rather than as a promised good or service) when the activities are performed even if those activities are performed after the control of the good has been transferred. Accordingly, we record the expenses for shipping and handling activities at the same time we recognize revenue. The Company excludes from the measurement of the transaction price all taxes imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer, including sales, use, excise, value-added, and franchise taxes (collectively referred to as sales taxes). The Company does not adjust revenue for the effects of any financing components if the contract has a duration of one year or less, as the Company receives payment from the customer within one year from when it transferred control of the related goods. The Company offers its products through an inventory lean omni-channel platform that provides a seamless and meaningful experience to its customers in showrooms, which includes mobile concierge and kiosks, and through the internet. The Other channel predominantly represents sales through the use of online pop-up-shops and shop-in-shops that are staffed with associates trained to demonstrate and sell our product. The following represents sales disaggregated by channel: Thirteen weeks ended Thirty-nine weeks ended (amounts in thousands) October 31, November 1, October 31, November 1, Showrooms $ 69,694 $ 41,538 $ 181,274 $ 72,507 Internet 35,542 25,710 90,198 101,848 Other 11,442 7,494 30,569 16,705 $ 116,678 $ 74,742 $ 302,041 $ 191,060 The Company has no foreign operations and its sales to foreign countries was less than .01% of total net sales in both fiscal 2022 and 2021. The Company had no customers in fiscal 2022 or 2021 that comprise more than 10% of total net sales. See Note 10 for sales disaggregated by product . |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | A summary of intangible assets follows: October 31, 2021 (amounts in thousands) Estimated Life Gross Carrying Amount Accumulated Amortization Net carrying amount Patents 10 years $ 2,717 $ (1,581) $ 1,136 Trademarks 3 years 1,365 (1,156) 209 Other intangibles 5 years 840 (840) — Total $ 4,922 $ (3,577) $ 1,345 January 31, 2021 (amounts in thousands) Estimated Life Gross Carrying Amount Accumulated Amortization Net carrying amount Patents 10 years $ 2,387 $ (1,129) $ 1,258 Trademarks 3 years 1,239 (981) 258 Other intangibles 5 years 840 (840) — Total $ 4,466 $ (2,950) $ 1,516 |
Schedule of estimated future amortization expense associated with intangible assets | As of October 31, 2021, estimated future amortization expense associated with intangible assets subject to amortization is as follows: (amounts in thousands) Remainder of Fiscal 2022 $ 73 2023 219 2024 202 2025 160 2026 141 2027 140 Thereafter 410 $ 1,345 |
Commitments, Contingency and _2
Commitments, Contingency and Related Parties (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of lease terms and rates | The Company’s lease terms and rates are as follows: October 31, Weighted average remaining lease term (in years) Operating Leases 7.1 Weighted average discount rate Operating Leases 3.85 % |
Schedule of location and amount of operating lease costs within condensed consolidated balance sheets | The following table discloses the location and amount of our operating lease costs within our condensed consolidated balance sheets: (amounts in thousands) Balance sheet location October 31, Assets Operating leases Operating lease right-of-use assets (non-current) $ 95,567 Liabilities Current: Operating leases Current operating lease liabilities 15,722 Noncurrent: Operating leases Operating lease liability, long term 90,658 Total lease liabilities $ 106,380 |
Schedule to reconcile undiscounted future minimum lease payments | The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable leases with terms of more than one year to the total lease liabilities recognized on the condensed consolidated balance sheet as of October 31, 2021 in thousands: (amounts in thousands) Remainder 2022 $ 3,382 2023 19,264 2024 18,590 2025 17,440 2026 15,801 Thereafter 48,408 Total undiscounted future minimum lease payments 122,885 Less: imputed interest (16,505) Total present value of lease obligations 106,380 Less: current operating lease liability (15,722) Operating lease liability- long term $ 90,658 |
Schedule of supplemental cash flow information and non-cash activity related to operating leases | Supplemental Cash Flow information and non-cash activity related to our operating leases is as follows (in thousands): (amounts in thousands) For the thirty-nine weeks ended October 31, 2021 Operating cash flow information: Amounts paid on operating lease liabilities $ 10,396 Non-cash activities Right-of-use assets obtained in exchange for lease obligations $ 106,415 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of warrant activity | The following represents warrant activity during the thirty-nine weeks ended October 31, 2021 and November 1, 2020: Average exercise Number of warrants Weighted average remaining Warrants Outstanding at February 2, 2020 $ 16.83 1,039,120 1.93 Warrants issued — — 0 Expired and canceled — — 0 Exercised 16.00 (246,622) 0.71 Outstanding at November 1, 2020 $ 17.14 792,498 1.38 Warrants Outstanding at January 31, 2021 $ 19.07 293,973 2.57 Warrants issued — — 0 Expired and canceled 9.83 (98) 0 Exercised 16.00 (12,125) 0.09 Outstanding at October 31, 2021 $ 19.20 281,750 1.66 |
Schedule of stock option activity | A summary of the status of our stock options as of October 31, 2021 and November 1, 2020, and the changes during the thirty-nine weeks ended October 31, 2021 and November 1, 2020 is presented below: Number of options Weighted average exercise price Weighted average remaining contractual life (in years) Average intrinsic value Outstanding at February 2, 2020 495,366 $ 38.10 2.34 — Exercised — Expired and canceled — Outstanding at November 1, 2020 495,366 $ 38.10 3.59 — Exercisable at the end of the period — — — — Number of options Weighted average exercise price Weighted average remaining contractual life (in years) Average intrinsic value Outstanding at January 31, 2021 495,366 $ 38.10 3.35 — Granted — — Canceled and forfeited — — Outstanding at October 31, 2021 495,366 $ 38.10 2.60 $ 27.08 Exercisable at the end of the period — — — — |
Schedule of unvested restricted stock | A summary of the status of our unvested restricted stock units as of October 31, 2021 and November 1, 2020, and changes during the thirty-nine weeks then ended, is presented below: Number of shares Weighted average grant date fair value Unvested at February 2, 2020 183,053 $ 21.34 Granted 611,086 17.83 Forfeited (3,078) 15.27 Vested (105,318) 15.83 Unvested at November 1, 2020 685,743 $ 19.19 Number of shares Weighted average grant date fair value Unvested at January 31, 2021 655,558 $ 18.86 Granted 75,656 76.91 Forfeited (39,503) 20.52 Vested (173,449) 19.54 Unvested at October 31, 2021 518,262 $ 26.57 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of operating segments | The Company’s operating segments are aggregated for financial reporting purposes because they are similar in each of the following areas including economic characteristics, class of consumer, nature of products and distribution method and products are a singular group of products which make up over 95% of net sales. Thirteen weeks ended Thirty-nine weeks ended October 31, November 1, October 31, November 1, (amounts in thousands) Sactionals $ 100,374 $ 63,303 $ 263,558 $ 160,655 Sacs 14,195 10,197 33,053 27,723 Other 2,109 1,242 5,430 2,682 $ 116,678 $ 74,742 $ 302,041 $ 191,060 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of sales disaggregated by channel | The following represents sales disaggregated by channel: Thirteen weeks ended Thirty-nine weeks ended (amounts in thousands) October 31, November 1, October 31, November 1, Showrooms $ 69,694 $ 41,538 $ 181,274 $ 72,507 Internet 35,542 25,710 90,198 101,848 Other 11,442 7,494 30,569 16,705 $ 116,678 $ 74,742 $ 302,041 $ 191,060 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Feb. 01, 2021 | Jan. 31, 2021 |
Accounting Changes and Error Corrections [Abstract] | |||
Operating lease right-of-use assets | $ 95,567 | $ 90,000 | $ 0 |
Operating lease liabilities | $ 106,380 | 97,000 | |
Deferred rent | $ 6,700 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of intangible assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 31, 2021 | Jan. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,922 | $ 4,466 |
Accumulated Amortization | (3,577) | (2,950) |
Net carrying amount | $ 1,345 | $ 1,516 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Life | 10 years | 10 years |
Gross Carrying Amount | $ 2,717 | $ 2,387 |
Accumulated Amortization | (1,581) | (1,129) |
Net carrying amount | $ 1,136 | $ 1,258 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Life | 3 years | 3 years |
Gross Carrying Amount | $ 1,365 | $ 1,239 |
Accumulated Amortization | (1,156) | (981) |
Net carrying amount | $ 209 | $ 258 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Life | 5 years | 5 years |
Gross Carrying Amount | $ 840 | $ 840 |
Accumulated Amortization | (840) | (840) |
Net carrying amount | $ 0 | $ 0 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Nov. 01, 2020 | Oct. 31, 2021 | Nov. 01, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense on other intangible assets | $ 0.1 | $ 0.6 | $ 0.3 | $ 0.4 |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of estimated future amortization expense associated with intangible assets (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of Fiscal 2022 | $ 73 | |
2023 | 219 | |
2024 | 202 | |
2025 | 160 | |
2026 | 141 | |
2027 | 140 | |
Thereafter | 410 | |
Net carrying amount | $ 1,345 | $ 1,516 |
Basic and Diluted Net Income _2
Basic and Diluted Net Income (Loss) Per Common Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Nov. 01, 2020 | Oct. 31, 2021 | Nov. 01, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive shares | 1,973,607 | |||
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive shares | 518,262 | 518,262 | 685,743 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive shares | 495,366 | 495,366 | 495,366 | 495,366 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive shares | 281,750 | 281,750 | 792,498 |
Commitments, Contingency and _3
Commitments, Contingency and Related Parties - Schedule of lease terms and rates (Details) | Oct. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | |
Operating leases, weighted average remaining lease term (in years) | 7 years 1 month 6 days |
Operating leases, weighted average discount rate | 3.85% |
Commitments, Contingency and _4
Commitments, Contingency and Related Parties - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2021 | Nov. 01, 2020 | Oct. 31, 2021 | Nov. 01, 2020 | Jan. 31, 2021 | |
Related Party Transaction [Line Items] | |||||
Operating lease expense | $ 4,900,000 | $ 13,900,000 | |||
Other rental expenses | 2,900,000 | 7,300,000 | |||
Impairment charges | 600,000 | ||||
Severance contingency, maximum amount payable | 5,100,000 | $ 5,100,000 | |||
Blueport sales | $ 400,000 | $ 2,100,000 | |||
Minimum | |||||
Related Party Transaction [Line Items] | |||||
Length of severance pay | 12 months | ||||
Maximum | |||||
Related Party Transaction [Line Items] | |||||
Length of severance pay | 18 months | ||||
Mistral Capital Management, LLC | |||||
Related Party Transaction [Line Items] | |||||
Management fees | 100,000 | 300,000 | |||
Accounts payable, related parties (less than at 1/31) | 0 | $ 0 | $ 100,000 | ||
Satori Capital, LLC | |||||
Related Party Transaction [Line Items] | |||||
Management fees | 100,000 | 100,000 | |||
Accounts payable, related parties (less than at 1/31) | 0 | 0 | $ 100,000 | ||
Reimbursed out of pocket expenses | $ 0 | $ 0 | $ 0 | $ 100,000 |
Commitments, Contingency and _5
Commitments, Contingency and Related Parties - Schedule of location and amount of operating lease costs within condensed consolidated balance sheets (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Feb. 01, 2021 | Jan. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease right-of-use assets | $ 95,567 | $ 90,000 | $ 0 |
Current operating lease liabilities | 15,722 | 0 | |
Operating lease liability, long term | 90,658 | $ 0 | |
Total present value of lease obligations | $ 106,380 | $ 97,000 |
Commitments, Contingency and _6
Commitments, Contingency and Related Parties - Schedule to reconcile undiscounted future minimum lease payments (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Feb. 01, 2021 | Jan. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | |||
Remainder 2022 | $ 3,382 | ||
2023 | 19,264 | ||
2024 | 18,590 | ||
2025 | 17,440 | ||
2026 | 15,801 | ||
Thereafter | 48,408 | ||
Total undiscounted future minimum lease payments | 122,885 | ||
Less: imputed interest | (16,505) | ||
Total present value of lease obligations | 106,380 | $ 97,000 | |
Less: current operating lease liability | (15,722) | $ 0 | |
Operating Lease Liabilities, long-term | $ 90,658 | $ 0 |
Commitments, Contingency and _7
Commitments, Contingency and Related Parties - Schedule of supplemental cash flow information and non-cash activity related to operating leases (Details) $ in Thousands | 9 Months Ended |
Oct. 31, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Amounts paid on operating lease liabilities | $ 10,396 |
Right-of-use assets obtained in exchange for lease obligations | $ 106,415 |
Financing Arrangements (Details
Financing Arrangements (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 31, 2021 | Jan. 31, 2021 | |
Financing Arrangements (Details) [Line Items] | ||
Eligible credit card receivables percentage | 90.00% | |
Eligible wholesale receivables percentage | 85.00% | |
Net recovery percentage | 85.00% | |
Increase the net recovery percentage | 90.00% | |
Borrowing availability under the line of credit (in dollars) | $ 22.5 | $ 15.9 |
Wells | ||
Financing Arrangements (Details) [Line Items] | ||
Borrowings amount | $ 25 | |
Minimum | ||
Financing Arrangements (Details) [Line Items] | ||
Tiers range percentage | 2.00% | |
Maximum | ||
Financing Arrangements (Details) [Line Items] | ||
Tiers range percentage | 2.25% |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of warrant activity (Details) - $ / shares | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Oct. 31, 2021 | Nov. 01, 2020 | Jan. 31, 2021 | Feb. 02, 2020 | |
Number of options | |||||
Number of warrants, warrants issued (in shares) | 495,366 | ||||
Warrants Activity | |||||
Class of Warrant or Right [Line Items] | |||||
Average exercise price, warrants outstanding, beginning balance (in dollars per share) | $ 19.07 | $ 16.83 | $ 16.83 | ||
Average exercise price, warrants issued (in dollars per share) | 0 | 0 | |||
Average exercise price, expired and canceled (in dollars per share) | 9.83 | 0 | |||
Average exercise price, exercised (in dollars per share) | 16 | 16 | |||
Average exercise price, warrants outstanding, ending balance (in dollars per share) | $ 19.20 | $ 17.14 | $ 19.07 | $ 16.83 | |
Number of options | |||||
Number of warrants, warrants outstanding, beginning balance (in shares) | 293,973 | 1,039,120 | 1,039,120 | ||
Number of warrants, warrants issued (in shares) | 0 | 0 | |||
Number of warrants, expired and canceled (in shares) | (98) | 0 | |||
Number of warrants, exercised (in shares) | (12,125) | (246,622) | |||
Number of warrants, warrants outstanding, ending balance (in shares) | 281,750 | 792,498 | 293,973 | 1,039,120 | |
Weighted average remaining contractual life (in years), warrants outstanding, beginning balance | 1 year 7 months 28 days | 1 year 4 months 17 days | 2 years 6 months 25 days | 1 year 11 months 4 days | |
Weighted average remaining contractual life, warrants issued (in years) | 0 years | 0 years | |||
Weighted average remaining contractual life, expired and canceled (in years) | 0 years | 0 years | |||
Weighted average remaining contractual life, exercised (in years) | 1 month 2 days | 8 months 15 days | |||
Weighted average remaining contractual life (in years), warrants outstanding, ending balance | 1 year 7 months 28 days | 1 year 4 months 17 days | 2 years 6 months 25 days | 1 year 11 months 4 days |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Millions | Jun. 05, 2021trading_day$ / shares | Jun. 30, 2019USD ($)trading_day$ / sharesshares | Oct. 31, 2021USD ($)shares | Nov. 01, 2020USD ($) | Oct. 31, 2021USD ($)shares | Nov. 01, 2020USD ($) |
Class of Stock [Line Items] | ||||||
Cashless warrant exercised (in shares) | 5,625 | |||||
Number of expired warrants (in shares) | 98 | |||||
Non statutory stock options granted (in shares) | 495,366 | |||||
Stock option price exercise (in dollars per share) | $ / shares | $ 38.10 | |||||
Stock options are subject to vesting percentage | 100.00% | |||||
Consecutive trading days | trading_day | 40 | 40 | ||||
Stock price (in dollars per share) | $ / shares | $ 75 | $ 75 | ||||
Stock option modified (in shares) | 495,366 | |||||
Additional compensation | $ | $ 0.9 | |||||
Modification and remaining expense was recognized | $ | $ 0.3 | |||||
Stock-based compensation | $ | $ 0.4 | $ 0.5 | ||||
Equity based compensation expense | $ | 1.1 | $ 1.1 | 2.9 | $ 2.6 | ||
Total unrecognized equity based compensation cost related to unvested stock option and restricted unit awards | $ | $ 5.2 | $ 5.2 | ||||
Weighted average period | 1 year 9 months 25 days | |||||
2017 Equity Incentive Plan | ||||||
Class of Stock [Line Items] | ||||||
Granted term | 10 years | |||||
Common stock reserved issuance (in shares) | 2,104,889 | 2,104,889 | ||||
Warrant | ||||||
Class of Stock [Line Items] | ||||||
Issuance of common shares (in shares) | 10,956 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of stock option activity (Details) - $ / shares | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2021 | Nov. 01, 2020 | Jan. 31, 2021 | Feb. 02, 2020 | |
Number of options | ||||
Number of options, outstanding, beginning balance (in shares) | 495,366 | 495,366 | 495,366 | |
Number of options, exercised (in shares) | 0 | |||
Number of options, expired and canceled (in shares) | 0 | |||
Number of options, granted (in shares) | 0 | |||
Number of options, canceled and forfeited (in shares) | 0 | |||
Number of options, outstanding, ending balance (in shares) | 495,366 | 495,366 | 495,366 | 495,366 |
Number of options, exercisable at the end of the period (in shares) | 0 | 0 | ||
Weighted average exercise price | ||||
Weighted average exercise price, outstanding, beginning balance (in dollars per share) | $ 38.10 | $ 38.10 | $ 38.10 | |
Weighted average exercise price, granted (in dollars per share) | 0 | |||
Weighted average exercise price, canceled and forfeited (in dollars per share) | 0 | |||
Weighted average exercise price, outstanding, ending balance (in dollars per share) | 38.10 | 38.10 | $ 38.10 | $ 38.10 |
Weighted average exercise price, exercisable at the end of the period (in dollars per share) | $ 0 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Weighted average remaining contractual life, outstanding (in years) | 2 years 7 months 6 days | 3 years 7 months 2 days | 3 years 4 months 6 days | 2 years 4 months 2 days |
Average intrinsic value, outstanding, beginning balance (in dollars per share) | $ 0 | $ 0 | $ 0 | |
Average intrinsic value, outstanding, ending balance (in dollars per share) | 27.08 | 0 | $ 0 | $ 0 |
Average intrinsic value, exercisable at the end of the period (in dollars per share) | $ 0 | $ 0 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of unvested restricted stock (Details) - Restricted stock units - $ / shares | 9 Months Ended | |
Oct. 31, 2021 | Nov. 01, 2020 | |
Number of shares | ||
Number of shares, unvested, beginning balance (in shares) | 655,558 | 183,053 |
Number of shares, granted (in shares) | 75,656 | 611,086 |
Number of shares, forfeited (in shares) | (39,503) | (3,078) |
Number of shares, vested (in shares) | (173,449) | (105,318) |
Number of shares, unvested, ending balance (in shares) | 518,262 | 685,743 |
Weighted average grant date fair value | ||
Weighted average grant date fair value, unvested, beginning balance (in dollars per share) | $ 18.86 | $ 21.34 |
Weighted average grant date fair value, granted (in dollars per share) | 76.91 | 17.83 |
Weighted average grant date fair value, forfeited (in dollars per share) | 20.52 | 15.27 |
Weighted average grant date fair value, vested (in dollars per share) | 19.54 | 15.83 |
Weighted average grant date fair value, unvested, ending balance (in dollars per share) | $ 26.57 | $ 19.19 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Nov. 01, 2020 | Oct. 31, 2021 | Nov. 01, 2020 | |
Retirement Benefits [Abstract] | ||||
Contributions plan, percentage | 100.00% | |||
Employer contribution plan, cost | $ 0.2 | $ 0.1 | $ 0.6 | $ 0.3 |
Segment Information - Schedule
Segment Information - Schedule of operating segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021USD ($) | Nov. 01, 2020USD ($) | Oct. 31, 2021USD ($)segment | Nov. 01, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||||
Operating segments, percentage of net sales | 95.00% | 95.00% | ||
Net sales | $ 116,678 | $ 74,742 | $ 302,041 | $ 191,060 |
Number of reporting segments | segment | 1 | |||
Sactionals | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 100,374 | 63,303 | $ 263,558 | 160,655 |
Sacs | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 14,195 | 10,197 | 33,053 | 27,723 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 2,109 | $ 1,242 | $ 5,430 | $ 2,682 |
Barter Arrangements (Details)
Barter Arrangements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2021 | Nov. 01, 2020 | Oct. 31, 2021 | Nov. 03, 2019 | Jan. 31, 2021 | |
Barter Arrangements [Abstract] | |||||
Inventory exchanged for media credits | $ 0.6 | $ 0.4 | $ 0.6 | $ 1.1 | |
Unused media credits | $ 2 | $ 2 | $ 2.5 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Oct. 31, 2021 | Nov. 01, 2020 | Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Returns allowance | $ 1.6 | $ 2.2 | |
Accrued expenses | 0.3 | 0.3 | |
Customer deposit liabilities | 6.7 | $ 6 | |
Recognized related to customer deposits | $ 6 | $ 1.7 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of sales disaggregated by channel (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2021 | Nov. 01, 2020 | Oct. 31, 2021 | Nov. 01, 2020 | Jan. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||||
Sales | $ 116,678 | $ 74,742 | $ 302,041 | $ 191,060 | |
Foreign Countries | Geographic Concentration Risk | Revenue Benchmark | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration of sales (less than) | 0.01% | 0.01% | |||
Showrooms | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | 69,694 | 41,538 | $ 181,274 | 72,507 | |
Internet | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | 35,542 | 25,710 | 90,198 | 101,848 | |
Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | $ 11,442 | $ 7,494 | $ 30,569 | $ 16,705 |