Cover
Cover - USD ($) | 12 Months Ended | ||
Jan. 30, 2022 | Mar. 15, 2022 | Aug. 01, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --01-30 | ||
Document Period End Date | Jan. 30, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-38555 | ||
Entity Registrant Name | THE LOVESAC COMPANY | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 792,087,229 | ||
Entity Common Stock, Shares Outstanding | 15,124,910 | ||
Documents Incorporated by Reference | Certain portions of the registrant's definitive proxy statement relating to its 2022 Annual Meeting of Stockholders, or the 2022 Proxy Statement, to be filed with the Securities and Exchange Commission, are incorporated by reference into Part III of this Annual Report on Form 10-K. Such 2022 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. Except with respect to information specifically incorporated by reference in this Form 10-K, the proxy statement is not deemed to be filed as part of this Form 10-K. | ||
Entity Central Index Key | 0001701758 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Jan. 30, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 688 |
Auditor Name | Marcum LLP |
Auditor Location | Hartford, CT |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 30, 2022 | Jan. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 92,392 | $ 78,341 |
Trade accounts receivable | 8,547 | 4,513 |
Merchandise inventories | 108,493 | 50,417 |
Prepaid expenses and other current assets | 15,726 | 10,128 |
Total Current Assets | 225,158 | 143,399 |
Property and equipment, net | 34,137 | 25,868 |
Operating lease right-of-use assets | 100,891 | 0 |
Other Assets | ||
Goodwill | 144 | 144 |
Intangible assets, net | 1,413 | 1,517 |
Deferred financing costs, net | 0 | 91 |
Deferred tax asset | 9,836 | 0 |
Total Other Assets | 11,393 | 1,752 |
Total Assets | 371,579 | 171,019 |
Current Liabilities | ||
Accounts payable | 33,247 | 24,311 |
Accrued expenses | 40,497 | 17,187 |
Payroll payable | 9,978 | 6,362 |
Customer deposits | 13,316 | 5,993 |
Current operating lease liabilities | 16,382 | 0 |
Sales taxes payable | 5,359 | 2,471 |
Total Current Liabilities | 118,779 | 56,324 |
Deferred Rent | 0 | 6,749 |
Operating Lease Liabilities, long term | 96,574 | 0 |
Line of Credit | 0 | 0 |
Total Liabilities | 215,353 | 63,073 |
Commitments and Contingencies (see Note 7) | ||
Stockholders’ Equity | ||
Preferred Stock $0.00001 par value, 10,000,000 shares authorized, no shares issued or outstanding as of Jan 30, 2022 and Jan 31, 2021. | 0 | 0 |
Common Stock $0.00001 par value, 40,000,000 shares authorized, 15,123,338 shares issued and outstanding as of Jan 30, 2022 and 15,011,556 shares issued and outstanding as of Jan 31, 2021. | 0 | 0 |
Additional paid-in capital | 173,762 | 171,382 |
Accumulated deficit | (17,536) | (63,436) |
Stockholders’ Equity | 156,226 | 107,946 |
Total Liabilities and Stockholders’ Equity | $ 371,579 | $ 171,019 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 30, 2022 | Jan. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 15,123,338 | 15,011,556 |
Common stock, shares outstanding (in shares) | 15,123,338 | 15,011,556 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2022 | Jan. 31, 2021 | Feb. 02, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 498,239 | $ 320,738 | $ 233,377 |
Cost of merchandise sold | 224,894 | 145,966 | 116,687 |
Gross profit | 273,345 | 174,772 | 116,690 |
Operating expenses | |||
Selling, general and administration expenses | 161,967 | 111,354 | 98,147 |
Advertising and marketing | 65,078 | 41,925 | 29,194 |
Depreciation and amortization | 7,859 | 6,613 | 5,158 |
Total operating expenses | 234,904 | 159,892 | 132,499 |
Operating income (loss) | 38,441 | 14,880 | (15,809) |
Interest (expense) income, net | (179) | (67) | 647 |
Net income (loss) before taxes | 38,262 | 14,813 | (15,162) |
Benefit from (provision for) income taxes | 7,638 | (86) | (43) |
Net income (loss) | $ 45,900 | $ 14,727 | $ (15,205) |
Net income (loss) per common share: | |||
Basic (in dollars per share) | $ 3.04 | $ 1.01 | $ (1.07) |
Diluted (in dollars per share) | $ 2.86 | $ 0.96 | $ (1.07) |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 15,107,958 | 14,610,617 | 14,260,395 |
Diluted (in shares) | 16,058,111 | 15,332,998 | 14,260,395 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Accumulated Deficit |
Balance (in shares) at Feb. 03, 2019 | 13,588,568 | |||
Balance at Feb. 03, 2019 | $ 78,770 | $ 0 | $ 141,728 | $ (62,958) |
Net income (loss) | (15,205) | (15,205) | ||
Equity-based compensation (in shares) | 101,883 | |||
Equity-based compensation | 5,246 | 5,246 | ||
Issuance of common shares, net (in shares) | 750,000 | |||
Issuance of common shares, net | 25,610 | 25,610 | ||
Issuance of common stock for restricted stock (in shares) | 180,304 | |||
Taxes paid for net share settlement of equity awards | (4,278) | (4,278) | ||
Exercise of warrants (in shares) | 27,246 | |||
Exercise of warrants | 12 | 12 | ||
Cancelation of shares (in shares) | (175,390) | |||
Balance (in shares) at Feb. 02, 2020 | 14,472,611 | |||
Balance at Feb. 02, 2020 | 90,155 | $ 0 | 168,318 | (78,163) |
Net income (loss) | 14,727 | 14,727 | ||
Equity-based compensation | 4,681 | 4,681 | ||
Issuance of common stock for restricted stock (in shares) | 99,498 | |||
Taxes paid for net share settlement of equity awards | (1,717) | (1,717) | ||
Exercise of warrants (in shares) | 439,447 | |||
Exercise of warrants | 100 | 100 | ||
Balance (in shares) at Jan. 31, 2021 | 15,011,556 | |||
Balance at Jan. 31, 2021 | 107,946 | $ 0 | 171,382 | (63,436) |
Net income (loss) | 45,900 | 45,900 | ||
Equity-based compensation | 5,859 | 5,859 | ||
Issuance of common stock for restricted stock (in shares) | 100,826 | |||
Taxes paid for net share settlement of equity awards | (3,583) | (3,583) | ||
Exercise of warrants (in shares) | 10,956 | |||
Exercise of warrants | 104 | 104 | ||
Balance (in shares) at Jan. 30, 2022 | 15,123,338 | |||
Balance at Jan. 30, 2022 | $ 156,226 | $ 0 | $ 173,762 | $ (17,536) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2022 | Jan. 31, 2021 | Feb. 02, 2020 | |
Cash Flows from Operating Activities | |||
Net income (loss) | $ 45,900 | $ 14,727 | $ (15,205) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization of property and equipment | 7,154 | 6,100 | 4,894 |
Amortization of other intangible assets | 705 | 513 | 264 |
Amortization of deferred financing fees | 91 | 88 | 73 |
Net loss (gain) on disposal of property and equipment | 464 | 5 | (167) |
Impairment of long-lived assets | 554 | 245 | 0 |
Equity-based compensation | 5,859 | 4,681 | 5,246 |
Deferred rent | 0 | 3,641 | 1,514 |
Non-cash operating lease cost | 14,953 | 0 | 0 |
Deferred income taxes | (9,836) | 0 | 0 |
Gain on recovery of insurance proceeds - lost profit margin | (632) | 0 | 0 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | (4,034) | 2,675 | (3,234) |
Merchandise inventories | (56,819) | (14,017) | (10,246) |
Prepaid expenses and other current assets | (2,459) | (2,060) | (2,116) |
Accounts payable and accrued expenses | 39,195 | 19,584 | 7,189 |
Operating lease liabilities | (14,400) | 0 | 0 |
Customer deposits | 7,323 | 4,339 | 594 |
Net Cash Provided by (Used in) Operating Activities | 34,018 | 40,521 | (11,194) |
Cash Flows from Investing Activities | |||
Purchase of property and equipment | (15,887) | (8,374) | (10,277) |
Payments for patents and trademarks | (601) | (678) | (674) |
Proceeds from disposal of property and equipment | 0 | 0 | 300 |
Net Cash Used in Investing Activities | (16,488) | (9,052) | (10,651) |
Cash Flows from Financing Activities | |||
Proceeds from the issuance of common shares, net | 0 | 0 | 25,610 |
Taxes paid for net share settlement of equity awards | (3,583) | (1,717) | (4,278) |
Proceeds from the exercise of warrants | 104 | 100 | 12 |
Paydown of proceeds from line of credit | 0 | 0 | (31) |
Payment of deferred financing costs | 0 | (50) | 0 |
Net Cash (used in) Provided by Financing Activities | (3,479) | (1,667) | 21,313 |
Net Change in Cash and Cash Equivalents | 14,051 | 29,802 | (532) |
Cash and Cash Equivalents - Beginning | 78,341 | 48,539 | 49,071 |
Cash and Cash Equivalents - End | 92,392 | 78,341 | 48,539 |
Supplemental Cash Flow Disclosures | |||
Cash paid for taxes | 1,121 | 86 | 43 |
Cash paid for interest | $ 95 | $ 85 | $ 63 |
Basis of Presentation, Operatio
Basis of Presentation, Operations and Liquidity, and Significant Accounting Policies | 12 Months Ended |
Jan. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION, OPERATIONS AND LIQUIDITY, AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION, OPERATIONS AND LIQUIDITY, AND SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements of The Lovesac Company (the “Company”, “we”, “us” or “our”) as of January 30, 2022 and January 31, 2021 and for the years ended January 30, 2022, January 31, 2021 and February 2, 2020 have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission. Certain amounts in the prior period financial statements have been reclassified to conform to the current presentation. 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. As of January 30, 2022, the Company operated 146 showrooms including kiosks and mobile concierges located throughout the United States. 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 improvement in conditions, there continues to be uncertainty 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 Prior to fiscal 2022 and fiscal 2021, the Company had incurred significant operating losses and used cash in its operating activities from 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, cash generated from operating activities during fiscal 2022 and fiscal 2021, projections for the next twelve months, and the credit facility with Wells Fargo Bank, N.A. ("Wells"), see Note 10 , the Company will have sufficient working capital to cover operating cash needs through the twelve-month period from the financial statement issuance date. SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of the Company and its subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. FISCAL YEAR The Company’s fiscal year is determined on a 52/53 week basis ending on the Sunday closest to February 1. Hereinafter, the fiscal years ended January 30, 2022, January 31, 2021 and February 2, 2020 are referred to as fiscal 2022, 2021 and 2020, respectively. Fiscal 2022, 2021 and 2020 were 52-week fiscal years. USE OF ESTIMATES The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically and the effects of the revisions are reflected in the period the change is determined. REVENUE RECOGNITION The Company implemented Accounting Standards Update ("ASU") 2015-04, Revenue from Contracts with Customers (Accounting Standards Codification Topic 606, “ASC 606”), in the first quarter of fiscal 2020 using modified retrospective method, which required the Company to apply the new guidance retrospectively to revenue transactions completed on or after the effective date. Adopting this new standard had no material financial impact on our consolidated financial statements but did result in enhanced presentation and disclosures. Our revenue consists substantially of product sales. The Company reports product sales net of discounts and recognize 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 statement of operations and an increase in inventory and customers returns liability on the balance sheet. As of January 30, 2022, there was a returns allowance of $2.0 million which was in accrued expenses and $0.4 million associated with sales returns in merchandise inventories. As of January 31, 2021, there was a returns allowance of $2.2 million which was in accrued expenses and $0.3 million associated with sales returns 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 balance sheet. As of January 30, 2022 and January 31, 2021, the Company recorded under customer deposit liabilities the amount of $13.3 million and $6.0 million, respectively. During the fiscal year ended January 30, 2022, the Company recognized $6.0 million related to its customer deposits from fiscal 2021. During the fiscal year ended January 31, 2021, the Company recognized $1.7 million from fiscal 2020. During the fiscal year ended February 2, 2020, the Company recognized $1.1 million from fiscal 2019. Under ASC 606, the Company has 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. Accordingly, the Company records the expenses for shipping and handling activities at the same time the Company recognizes 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 entity 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 showrooms and through the Internet. The other channel predominantly represents sales through the use of online and in store pop-up shops, shop-in-shops, and barter inventory transactions. In store pop-up-shops are staffed with associates trained to demonstrate and sell our product. The following represents sales disaggregated by channel: For the fiscal years ended January 30, 2022 January 31, 2021 February 2, 2020 Showrooms $ 298,989 $ 146,150 $ 148,004 Internet 150,622 151,065 55,781 Other 48,628 23,523 29,592 Total net sales $ 498,239 $ 320,738 $ 233,377 The Company has no foreign operations and its sales to foreign countries was less than .01% of total net sales in fiscal 2022, 2021, and 2020. The Company had no customers in fiscal 2022, 2021, or 2020 that comprise more than 10% of total net sales. See Note 11 for sales disaggregated by product . CASH AND CASH EQUIVALENTS The Company considers all highly liquid investments with a maturity at purchase of three months or less to be cash equivalents. The Company has deposits with financial institutions that maintain Federal Deposit Insurance Corporation “FDIC” deposit insurance up to $250,000 per depositor. The portion of the deposit in excess of this limit represents a credit risk to the Company. Due to the high cash balance maintained by the Company, the Company does maintain depository balances in excess of the insured amounts. TRADE ACCOUNTS RECEIVABLE Trade accounts receivable are carried at their estimated realizable amount and do not bear interest. Management determines the allowance for doubtful accounts by regularly evaluating individual customer accounts, considering the customer’s financial condition, and credit history, and general and industry current economic conditions. Trade accounts receivable are reserved for when deemed uncollectible. Recoveries of amounts previously written off are recorded when received. Historically, collection losses have been immaterial as a significant portion of the Company’s receivables are related to individual credit card transactions and three wholesale customers for which the Company has no history of collection losses. Management has concluded that an allowance was not necessary at January 30, 2022 and January 31, 2021, respectively. Breakdown of accounts receivable is as follows: As of January 30, 2022 As of As of January 31, 2021 Credit card receivables $ 3,186 $ 2,964 Wholesale receivables 5,361 1,549 $ 8,547 $ 4,513 The Company had two wholesale customers that comprised 100% and 97% of wholesale receivables at January 30, 2022 and January 31, 2021, respectively. PREPAID EXPENSES AND OTHER CURRENT ASSETS The Company recognizes payments made for goods and services to be received in the near future as prepaid expenses and other current assets. Prepaid expenses and other current assets consist primarily of payments related to insurance premiums, catalog costs, barter credits, deposits, prepaid rent, prepaid inventory, and other costs. MERCHANDISE INVENTORIES Merchandise inventories are comprised of finished goods which are carried at the lower of cost or net realizable value. Cost is determined on a weighted-average method basis. Merchandise inventories consist primarily of foam filled furniture, sectional couches, and related accessories. The Company adjusts its inventory for obsolescence based on historical trends, aging reports, specific identification and its estimates of future retail sales prices. In addition, the Company includes capitalized freight and warehousing costs in inventory relative to the finished goods in inventory. GIFT CERTIFICATES AND MERCHANDISE CREDITS The Company sells gift certificates and issues merchandise credits to its customers in the showrooms and through its website. Revenue associated with gift certificates and merchandise credits is deferred until redemption of the gift certificate and merchandise credits. The Company did not recognize any breakage revenue in fiscal 2022, fiscal 2021 or fiscal 2020 as the Company continues to honor all outstanding gift certificates. PROPERTY AND EQUIPMENT, NET Property and equipment are stated at cost less accumulated depreciation and amortization. Office and showroom furniture and equipment, software and vehicles are depreciated using the straight-line method over their estimated useful lives. Leasehold improvements are amortized using the straight-line method over their expected useful lives or lease term, whichever is shorter. Expenditures for repairs and maintenance are charged to expense as incurred. For assets sold or otherwise disposed of, the cost and related accumulated depreciation or amortization is removed from the accounts, and any resulting gain or loss is reflected in operations for the period. Expenditures for major betterments that extend the useful lives of property and equipment are capitalized. GOODWILL Goodwill represents the excess of the purchase price over the fair value of the identified net assets of each business acquired. Goodwill and other indefinite-lived intangible assets are tested annually for impairment in the fourth fiscal quarter and in interim periods if certain events occur indicating that the carrying amounts may be impaired. If a qualitative assessment is used and the Company determines that the fair value of a reporting unit or indefinite-lived intangible asset is more likely than not (i.e., a likelihood of more than 50%) less than its carrying amount, a quantitative impairment test will be performed. If goodwill is quantitatively assessed for impairment, a two-step approach is applied. In the first step, the Company compares the fair value of the reporting unit, generally defined as the same level as or one level below an operating segment, to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is considered not impaired and the Company is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the second step of the impairment test must be performed in order to determine the implied fair value of the reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then an impairment loss equal to the difference would be recorded. There were no impairments during fiscal 2022, 2021, or 2020. The fair value of the Company’s reporting unit is determined by using a discounted cash flow analysis. The determination of fair value requires assumptions and estimates of many critical factors, including among others, the nature and history of the Company, financial and economic conditions affecting the Company, the industry and the general economy, past results, current operations and future prospects, sales of similar businesses or capital stock of publicly held similar businesses, as well as prices, terms and conditions affecting past sales of similar businesses. Forecasts of future operations are based, in part, on operating results and management’s expectations as to future market conditions. These types of analyses contain uncertainties because they require management to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. However, if actual results are not consistent with the Company’s estimates and assumptions, there may be exposure to future impairment losses that could be material. INTANGIBLE ASSETS Intangible assets with finite useful lives, including patents, trademarks, and other intangible assets are being amortized on a straight-line basis over their estimated lives. Other intangible assets with finite useful lives are reviewed for impairment whenever events or circumstances indicate that the carrying amount of the asset might not be recovered. Patents and licenses are recorded at cost and amortized on a straight-line basis over the estimated remaining life of the patent or license. Ongoing maintenance costs are expensed as incurred. If the estimates of the useful lives should change, the Company will amortize the remaining book value over the remaining useful life, or if it is deemed to be impaired a write-down of the value of the asset may be required at such time. There were no impairments during either fiscal 2022, 2021, or 2020. IMPAIRMENT OF LONG-LIVED ASSETS The Company’s long-lived assets consist of property and equipment and right of use assets from leases. Property and equipment includes leasehold improvements, and other intangible assets. Long-lived assets are reviewed for potential impairment at such time that events or changes in circumstances indicate that the carrying amount of an asset might not be recovered. The Company evaluates for impairment at the individual showroom level, which is the lowest level at which individual cash flows can be identified. When evaluating long-lived assets for potential impairment, the Company will first compare the carrying amount of the assets to the future undiscounted cash flows for the respective long-lived asset. If the estimated future cash flows are less than the carrying amounts of the assets, an impairment loss calculation is prepared. An impairment loss is measured based upon the excess of the carrying value of the asset over its estimated fair value which is generally based on an estimated future discounted cash flow. If required, an impairment loss is recorded for that portion of the asset’s carrying value in excess of fair value. In fiscal 2022, the Company recognized impairment charges totaling $0.6 million associated with showroom-level right of use lease assets. During fiscal 2021, the Company recorded impairment charges of $0.2 million, associated with the assets of an underperforming retail location. During fiscal 2020 there were no impairment charges. The impairments in fiscal 2022 and fiscal were 2021 calculated using a discounted cash flow model and were recorded in selling, general and administrative in the Company’s Consolidated Statements of Operations. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and administrative expenses include all operating costs, other than advertising and marketing expense, not included in cost of merchandise sold. These expenses include all payroll and payroll-related expenses; showroom expenses, including occupancy costs related to showroom operations, such as rent and common area maintenance; occupancy and expenses related to many of our operations at our headquarters, including utilities, equity based compensation, financing related expenses and public company expenses; and credit card transaction fees. Selling, general and administrative expenses as a percentage of net sales is usually higher in lower volume quarters and lower in higher volume quarters because a significant portion of the costs are relatively fixed. ADVERTISING AND CATALOG COSTS The Company capitalizes direct response advertising costs, which consist primarily of television advertising, postcards, catalogs and their mailing costs, and recognizes expense over the related revenue stream if the following conditions are met (1) the primary purpose of the advertising is to elicit sales to customers who could be shown to have responded specifically to the advertising, and (2) the direct-response advertising results in probable and estimable future benefits. Direct-response advertising costs, which are included in prepaid expenses and other current assets, are amortized commencing the date the catalogs and post cards are mailed and the television commercial airs through the estimated period of time for the Company has determined the related advertising impacts sales. There was no balance as of January 30, 2022 and January 31, 2021. As of January 30, 2022 and January 31, 2021 the Company did not have any capitalized deferred direct-response television, postcard and catalog costs. Advertising costs not associated with direct-response advertising are expensed as incurred and were $65.1 million in fiscal 2022, $41.9 million in fiscal 2021, and $29.2 million in fiscal 2020. SHOWROOM PREOPENING AND CLOSING COSTS Non-capital expenditures incurred in preparation for opening new retail showrooms are expensed as incurred and included in selling, general and administrative expenses. The Company continually evaluates the profitability of its showrooms. When the Company closes or relocates a showroom, the Company incurs unrecoverable costs, including the net book value of abandoned fixtures and leasehold improvements, lease termination payments, costs to transfer inventory and usable fixtures and other costs of vacating the leased location. Such costs are expensed as incurred and are included in selling, general and administrative expenses. PRODUCT WARRANTY Depending on the type of merchandise, the Company offers either a three-year limited warranty or a lifetime warranty. The Company’s warranties require it to repair or replace defective products at no cost to the customer. At the time product revenue is recognized, the Company reserves for estimated future costs that may be incurred under its warranties based on historical experience. The Company periodically reviews the adequacy of its recorded warranty liability. Product warranty expense, without any reserve adjustments, was approximately $0.5 million in fiscal 2022, $0.7 million in fiscal 2021, and $0.9 million in fiscal 2020. The decreases in fiscal 2022 and fiscal 2021 are related to fewer number of warranty claims. Warranty reserve was $0.7 million as of January 30, 2022 and $0.6 million as of January 31, 2021. OPERATING LEASES During Fiscal 2022, the Company adopted ASU No. 2016-02, Leases (Topic 842), see NEW ACCOUNTING PRONOUNCEMENTS section of Note 1 . The Company determines if a long-term contractual obligation is a lease at inception. The majority of our operating leases relate to company showrooms. We also lease our corporate facilities. These operating leases expire at various dates through fiscal 2032. Showroom leases may include options that allow us to extend the lease term beyond the initial base period, subject to terms agreed upon at lease inception. Some leases also include early termination options, which can be exercised under specific conditions. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company records lease liabilities at the present value of the lease payments not yet paid, discounted at the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. As the Company's leases do not provide an implicit interest rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We recognize operating lease cost over the estimated term of the lease, which includes options to extend lease terms that are reasonably certain of being exercised, starting when possession of the property is taken from the landlord, which normally includes a construction period prior to the showroom opening. When a lease contains a predetermined fixed escalation of the fixed rent, we recognize the related operating lease cost on a straight-line basis over the lease term. In addition, certain of our lease agreements include variable lease payments, such as payments based on a percentage of sales that are in excess of a predetermined level and/or increases based on a change in the consumer price index or fair market value. These variable lease payments are excluded from minimum lease payments and are included in the determination of net lease cost when it is probable that the expense has been incurred and the amount can be reasonably estimated. If an operating lease asset is impaired, the remaining operating lease asset will be amortized on a straight-line basis over the remaining lease term. See Note 7 of the Notes to Consolidated Financial Statements for related disclosures. FAIR VALUE MEASUREMENTS The carrying amount of the Company’s financial instruments classified as current assets and current liabilities approximate fair values based on the short-term nature of the accounts. EQUITY-BASED COMPENSATION The Company’s 2017 Equity Plan provides for awards in the form of options, stock appreciation rights, restricted stock awards, restricted stock units, performance shares, cash-based awards and other stock-based awards. The plan allows for the issuance of up to 2,104,889 shares at January 30, 2022 and January 31, 2021. All awards shall be granted within 10 years from the effective date of the plan. The unit vesting was based on both time and performance. See Note 8 for additional disclosure. SHIPPING AND HANDLING Shipping and handling charges billed to customers are included in revenue. Shipping and handling costs incurred are included in cost of merchandise sold and include inbound freight and tariff costs relative to inventory sold, warehousing, and last mile shipping to our customers. Shipping and handling costs were $112.8 million in fiscal 2022, $63.1 million in fiscal 2021, and $47.1 million in fiscal 2020. INCOME TAXES The Company accounts for uncertainty in income taxes using a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes. In connection with the 2017 reorganization, the intent was that the net operating losses (NOLs) of SAC Acquisition, LLC, a limited liability company that had been historically treated as a C-corporation for federal and state income tax purposes, were to be inherited by the Company. The Company filed a request for a private letter ruling requesting additional time to make a check the box election pursuant to Treas. Reg. 301.7701-3. In PLR-109713-19 dated October 22, 2019 the Company was granted an extension of time of 120 days to file form 8832 “Entity Classification Election.” The completed Form 8832 was filed with The IRS on November 11, 2019. The Company has maintained the position that the NOLs were inherited from SAC Acquisition in the 2017 reorganization and consistently maintained a full valuation allowance against its NOLs as they were part of deferred income tax assets not likely to be realized prior to fiscal 2022. During fiscal 2022, the Company recorded a deferred tax asset of $9.8 million. Previous to fiscal 2022, the resolution of the uncertain tax position regarding the Company’s NOL carry forward during the year did not have an impact on the Company’s financial position or results of operations. As of January 30, 2022, there were no uncertain tax positions. See Note 6 for additional disclosures. Deferred income taxes are provided on temporary differences between the income tax basis of assets and liabilities and the amounts reported in the financial statements and on net operating loss and tax credit carry forwards. A valuation allowance is provided for that portion of deferred income tax assets not likely to be realized. Deferred income tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. 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. In fiscal 2022, the effects of 533,333 unvested restricted stock units, 495,366 stock options, and 281,750 common stock warrants were included in the diluted share calculation. In fiscal 2021, the effects of 655,558 unvested restricted stock units and 293,973 common stock warrants were included in the diluted share calculation. The effects of 495,366 stock options were excluded in the diluted net income per common share calculation because the effects of including theses potentially dilutive shares was antidilutive. In fiscal 2020, there were 1,717,539 of potentially dilutive shares which may be issued in the future, including 183,053 unvested restricted stock units, 495,366 stock options, and 1,039,120 common stock warrants. These shares were excluded in the diluted net loss per common share calculation as the effects of including theses potentially dilutive shares was antidilutive. NEW 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 following new accounting pronouncements were adopted in fiscal 2022: In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASC 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. In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 30, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment as of January 30, 2022 and January 31, 2021 consists of: Estimated Life 2022 2021 Office and store furniture, and equipment 5 Years $ 6,497 $ 4,803 Software 3 Years 3,625 3,628 Leasehold improvements Shorter of estimated useful life or lease term 40,788 33,828 Computers 3 Years 2,138 2,926 Tools, Dies, Molds 5 Years 764 215 Vehicles 5 Years 497 — Construction in process NA 2,765 2,098 57,074 47,498 Accumulated depreciation and amortization (22,937) (21,630) $ 34,137 $ 25,868 |
Other Intangible Assets, Net
Other Intangible Assets, Net | 12 Months Ended |
Jan. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
OTHER INTANGIBLE ASSETS, NET | OTHER INTANGIBLE ASSETS, NET A summary of other intangible assets follows: January 30, 2022 Estimated Life Gross Carrying Amount Accumulated Amortization Net carrying amount Patents 10 Years $ 2,838 $ (1,626) $ 1,212 Trademarks 3 Years 1,390 (1,189) 201 Other intangibles 5 Years 840 (840) — Total $ 5,068 $ (3,655) $ 1,413 January 31, 2021 Estimated Life Gross Carrying Amount Accumulated Amortization Net carrying amount Patents 10 years $ 2,388 $ (1,129) $ 1,259 Trademarks 3 years 1,239 (981) 258 Other intangibles 5 years 840 (840) — Total $ 4,467 $ (2,950) $ 1,517 Amortization expense on other intangible assets was $0.7 million in fiscal 2022, $0.5 million in fiscal 2021, and $0.3 million in fiscal 2020. Expected amortization expense by fiscal year for these other intangible assets follows (in thousands): 2023 $ 246 2024 231 2025 178 2026 161 2027 151 Thereafter 446 $ 1,413 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Jan. 30, 2022 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS A summary of other prepaid and other current assets follows (in thousands): 2022 2021 Prepaid insurance $ 1,667 $ 1,236 Prepaid catalogue costs and related 4,794 588 Barter credits 3,407 2,521 Deposits 421 997 Prepaid rent 62 1,704 Prepaid inventory 475 102 Prepaid software licenses 790 967 Tenant allowance receivable 2,781 1,464 Other 1,329 549 $ 15,726 $ 10,128 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jan. 30, 2022 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES A summary of accrued expenses follows (in thousands): 2022 2021 Accrued freight and shipping $ 23,683 $ 4,524 Accrued advertising fees 4,150 2,015 Accrued warehouse expenses 2,671 1,288 Accrued professional fees 2,268 1,590 Customer return liability 2,026 2,227 Accrued occupancy 1,284 937 Accrued state income taxes 1,007 7 Accrued insurance 973 541 Warranty liability 689 606 Accrued credit card fees 542 425 Other accrued expenses 1,204 3,027 $ 40,497 $ 17,187 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On March 27, 2020, the Federal government of the United States enacted the Coronavirus Aid Relief and Economic Security Act (“CARES Act”) which includes a number of significant changes to the existing U.S. tax laws including postponing the filing date of specific federal income tax returns and payments from April 15, 2020 to July 15, 2020, temporarily increasing the 30% limitation on the interest deduction to 50%, introduction of a capital investment deduction for Qualified Improvement Property (“QIP”), and change in the use of net operating losses. The Company’s federal net operating losses that have been incurred in tax years beginning on or before December 31, 2017 will have a 20-year carryforward limitation, a two-year carryback period and can offset 100% of future taxable income. Net operating losses incurred in tax years beginning after December 31, 2017 and before January 1, 2021 will have an indefinite life, a five-year carryback period and can offset 100% of future taxable income prior to 2021 and 80% of future taxable income after 2020. Net operating losses incurred in tax years beginning on or after January 1, 2021 will have an indefinite life, generally no carryback period and can offset 80% of future taxable income. State taxes for the fiscal years ended January 30, 2022, January 31, 2021 and February 2, 2020, were approximately $2.2 million, $0.1 million and less than $0.1 million respectively. 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 fiscal years 2022, 2021, and 2020, 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 consolidated statements of operations. The components of deferred income taxes follow: 2022 2021 Deferred Income Tax Assets Federal net operating loss carryforward $ 2,082 $ 7,763 State net operating loss carryforward 1,403 1,818 Intangible assets 397 286 Accrued liabilities 5,646 4,423 Equity-based compensation 2,032 1,083 Property and equipment — 640 Merchandise inventories 689 330 Charitable Contributions 12 10 Total Deferred Income Tax Assets 12,261 16,353 Deferred Income Tax Liabilities Property and equipment (2,425) — Valuation Allowance — (16,353) Net Deferred Income Tax Asset $ 9,836 $ — The income tax provision differs from the amount obtained by applying the statutory Federal income tax rate to pre-tax income as follows: 2022 2021 2020 Provision (benefit) at Federal Statutory rates $ 8,035 $ 3,111 $ (3,184) Permanent adjustments (1,039) (411) (848) State tax, net of Federal provision (benefit) 1,737 496 (582) Change in state deferred tax 146 — — Federal True-ups (164) 61 (394) Uncertain tax positions- NOLS — — (10,753) Change in valuation allowance (16,353) (3,171) 15,804 Income (benefit) tax provision $ (7,638) $ 86 $ 43 The Company is subject to federal, state and local corporate income taxes. The components of the provision for income taxes reflected on the consolidated statements of operations are set forth below: 2022 2021 2020 Current taxes: U.S. federal $ — $ — $ — State and local 2,198 86 43 Total current tax expense $ 2,198 $ 86 $ 43 Deferred taxes: U.S. federal $ (7,254) $ — $ — State and local (2,582) — — Total deferred tax expense (benefit) (9,836) — — Total tax provision $ (7,638) $ 86 $ 43 Differences in terms of percentages are as follows: 2022 2021 2020 Provision (benefit) at Federal Statutory rates 21.0 % 21.0 % (21.0) % Permanent adjustments (2.7) % (2.8) % (5.6) % State tax, net of Federal provision (benefit) 4.5 % 3.4 % (3.8) % Change in state deferreds 0.4 % — % — % Federal True-ups (0.4) % 0.4 % (2.6) % Uncertain tax positions- NOLS — % — % (70.9) % Change in valuation allowance (42.7) % (21.4) % 104.2 % Income tax provision (20.0) % 0.6 % 0.3 % At January 30, 2022 and January 31, 2021, the Company has net operating loss carryforwards available for federal income tax purposes of approximately $9.9 million and $37.0 million, respectively, which are scheduled to expire in varying amounts from fiscal 2027 to fiscal 2037. In addition, the Company has approximately $22.2 million and $30.4 million of state net operating loss carryforwards as of January 30, 2022 and January 31, 2021, respectively. In fiscal 2021 a reserve had been released that was previously recorded against the net operating losses in accordance with ASC 740-10 due to a Private Letter Ruling (“PLR”) that was issued by the IRS. The PLR approved the late filing of Form 8832, “Entity Classification Election”. Due to the filing of this form, the Company believes that the Federal and State NOLs will be available for future utilization. As defined in Section 382 of the Internal Revenue Code, certain ownership changes limit the annual utilization of federal net operating losses. As a result of issuance, sales and other transactions involving the Company’s stock, the Company experienced an ownership change during fiscal years ended January 31, 2011, February 2, 2020, and January 30, 2022 which have caused such federal net operating losses to be subject to limitation under Section 382. The annual base limitation from 2011, 2019, and 2022 are approximately $0.3 million, $5.9 million, and $7.7 million respectively. The Company is entitled to additional limitation based on the net unrealized built-in gain computation, which results in additional limitation of approximately $40.0 million over the next 5 years. During fiscal years ending January 30, 2022, January 31, 2021, and February 2, 2020, the Company increased/(decreased) the valuation allowance by approximately $(16.4) million, $(3.2) million, and $15.8 million, respectively. The Company reversed its valuation allowance during the fiscal year ended January 30, 2022 since it is more likely than not that the remaining net deferred tax assets will be realized. As of January 30, 2022, the Company does not have a valuation allowance against its net deferred tax assets. 2022 2021 2020 Beginning balance $ — $ — $ 10,753 Additions for tax positions acquired — — — Additions for tax positions related to current year — — — Tax positions of prior years: Payments — — — Settlements — — — Release — — (10,753) Ending balance $ — $ — $ — |
Commitments, Contingencies and
Commitments, Contingencies and Related Parties | 12 Months Ended |
Jan. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND RELATED PARTIES | COMMITMENTS, CONTINGENCIES 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: January 30, 2022 Weighted average remaining lease term (in years) Operating Leases 6.29 Weighted average discount rate 3.44 % Operating Leases During the fiscal year ended January 30, 2022, we recognized operating lease expense of $18.9 million. In addition, during the fiscal year ended January 30, 2022, we recognized $12.8 million, 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 fiscal year ended January 30, 2022, 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 fiscal year ended January 31, 2021 as we did not adopt the guidance in ASC 842 until fiscal year 2022. The following table discloses the location and amount of our operating lease costs within our consolidated balance sheets: (amounts in thousands) Balance sheet location January 30, 2022 Assets Operating leases Operating lease right-of-use assets (non-current) $ 100,891 Liabilities Current: Operating leases Current operating lease liabilities $ 16,382 Noncurrent: Operating leases Operating lease liability, long term $ 96,574 Total lease liabilities $ 112,956 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 consolidated balance sheet as of January 30, 2022 in thousands: (amounts in thousands) 2023 $ 20,493 2024 20,020 2025 18,756 2026 16,904 2027 14,459 Thereafter 40,329 Total undiscounted future minimum lease payments 130,961 Less: imputed interest (18,005) Total present value of lease obligations 112,956 Less: current operating lease liability (16,382) Operating lease liability- long term $ 96,574 Supplemental Cash Flow information and non-cash activity related to our operating leases is as follows (in thousands): (amounts in thousands) For the year ended January 30, 2022 Operating cash flow information: Amounts paid on operating lease liabilities $ 14,400 Non-cash activities Right-of-use assets obtained in exchange for lease obligations $ 116,048 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 executives are terminated without cause or resign for good reason. The total amount of exposure to the Company under these agreements was $5.5 million at January 30, 2022 if all executives with employment agreements were terminated without cause or were to resign for good reason 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 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. There were no management fees incurred in fiscal 2022. Management fees totaled approximately $0.4 million in both fiscal 2021 and 2020 and are included in selling, general and administrative expenses. There were no amounts payable to Mistral as of January 30, 2022. There were less than $0.1 million in amounts payable to Mistral as of January 31, 2021. In addition, the Company reimbursed Mistral for expenses incurred for less than $0.1 million for out-of-pocket expenses for fiscal 2021 and 2020. There were no such reimbursements in fiscal 2022. Our equity sponsor Satori Capital, LLC (“Satori”) performed management services for the Company under a contractual agreement that ended on January 31, 2021. There were no management fees incurred in fiscal 2022. Management fees totaled approximately $0.1 millions in both fiscal 2021 and 2020 and are included in selling, general and administrative expenses. There were no amounts payable to Satori as of January 30, 2022. 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 in the accompanying consolidated balance sheet as of January 31, 2021. In addition, the Company reimbursed Satori for expenses incurred for less than $0.1 million for out-of-pocket expenses in both fiscal 2021 and 2020. There were no such reimbursements during fiscal 2022. The Company engaged Blueport Commerce (“Blueport”), a company owned in part by investment vehicles affiliated with Mistral, as an ecommerce platform in February 2018. The Company terminated the Blueport contract in fiscal 2021 in order to launch a new enhanced ecommerce platform. There were no fees incurred in fiscal 2022. There were $2.1 million and $1.8 million of fees incurred with Blueport that were related to sales transacted through the Blueport platform during fiscal 2021 and 2020, respectively. There was an additional $0.7 million of fees incurred with Blueport during fiscal 2021 related to Lovesac’s early termination of our contract. There were no amounts payable as of January 30, 2022 or January 31, 2021. RECOVERY OF INSURANCE PROCEEDS During fiscal year 2022, a warehouse the Company had inventory in was damaged by fire and qualified for a loss recovery claim. The Company disposed of inventory of approximately $0.6 million. The Company reached an agreement with its insurance carrier and the Company received a cash insurance recovery of approximately $1.2 million for the reimbursement of lost inventory and profit margin. Accordingly, the Company recognized a gain of approximately $0.6 million related to the recovery of lost profit margin and is included in the accompanying consolidated statements of operations as a reduction to cost of goods sold. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY COMMON STOCK WARRANTS In fiscal 2022, 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 fiscal 2022 resulted in the issuance of 10,956 common shares. There were 98 warrants that expired as of January 30, 2022. In fiscal 2021, 738,897 warrants exercised were cashless, whereby the holders received fewer shares of common stock in lieu of a cash payment to the Company. Warrants exercised in fiscal 2021 resulted in the issuance of 439,447 common shares. Warrants exercised in fiscal 2020 resulted in the issuance of 27,246 common shares. The following represents warrant activity during fiscal 2022 and 2021: Average exercise price Number of warrants Weighted average remaining contractual life (in years) Outstanding at February 3, 2019 16.83 1,067,475 2.93 Warrants issued 16.00 18,166 2.40 Expired and canceled — — — Exercised 16.00 (46,521) 2.15 Outstanding at February 2, 2020 16.83 1,039,120 1.93 Warrants issued — — — Expired and canceled — 0 — Exercised 16.00 (745,147) 0.41 Outstanding at January 31, 2021 19.07 293,973 2.57 Warrants issued — — — Expired and canceled 9.83 (98) — Exercised 16.00 (12,125) 0.09 Outstanding at January 30, 2022 $ 19.20 281,750 1.41 EQUITY INCENTIVE PLANS The Company adopted the 2017 Equity Plan which provides for awards in the form of 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. In June 2019, the Company granted 495,366 nonstatutory 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 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 was 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 fiscal year 2022 of approximately $0.9 million. In June 2020, the stockholders of the Company approved an amendment to the 2017 Equity Plan that increased the number of shares of common stock reserved for issuance under the 2017 Equity Plan by 690,000 shares of common stock. The number of shares of common stock reserved for issuance under the 2017 Equity Plan increased from 1,414,889 to 2,104,889 shares of common stock. A summary of the status of our stock options as of January 30, 2022, January 31, 2021, and February 2, 2020 and the changes during fiscal years then ended, is presented below: For the years ended January 30, 2022, January 31, 2021, and February 2, 2020 Number of options Weighted average exercise price Weighted average remaining contractual life (in years) Average intrinsic value Outstanding at February 3, 2019 — $ — 0 — Granted 495,366 38.10 Canceled and forfeited — $ — Outstanding at February 2, 2020 495,366 $ 38.10 2.34 — Granted — — Canceled and forfeited — — Outstanding at January 31, 2021 495,366 $ 38.10 3.35 — Granted — $ — Canceled and forfeited — — Outstanding at January 30, 2022 495,366 $ 38.10 2.35 $ 28.68 Exercisable at the end of the period — — — — A summary of the status of our unvested restricted stock units as of January 30, 2022, January 31, 2021, February 2, 2020, and and changes during fiscal years then ended, is presented below: Number of shares Weighted average grant date fair value Unvested at February 3, 2019 377,286 $ 11.16 Granted 130,898 23.63 Forfeited (20,470) 16.21 Vested (304,661) 12.75 Unvested at February 2, 2020 183,053 $ 21.34 Granted 627,940 16.94 Forfeited (5,701) 11.86 Vested (149,734) 16.24 Unvested at January 31, 2021 655,558 18.86 Granted 94,985 78.53 Forfeited (42,516) 22.67 Vested (174,694) 19.57 Unvested at January 30, 2022 533,333 $ 28.41 Equity-based compensation expense was approximately $5.9 million, $4.7 million, and $4.9 million for fiscal 2022, 2021, and 2020 respectively. In fiscal 2020, all the unvested restricted stock units for certain senior executives of the Company that were granted prior to the accelerated vesting trigger, vested according to the accelerated vesting trigger in their restricted stock unit agreements. The triggering event was the market capitalization of the Company post-IPO, exceeding $300 million for 60 consecutive trading days and the expiration of the lock-up period. This accelerated vesting resulted in equity based compensation in the amount of $2.9 million. In December 2019, the exchange and modification of options that were held at SAC LLC resulted in approximately $313,000 of equity-based compensation expense. The total unrecognized equity based compensation cost related to unvested stock option and restricted unit awards was approximately $4.8 million as of January 30, 2022 and will be recognized in operations over a weighted average period of 2.11 years. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Jan. 30, 2022 | |
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 1 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 employer contributions to the 401(k) Plan for fiscal 2022, fiscal 2021, and fiscal 2020 were approximately $0.8 million, $0.5 million, and $0.4 million, respectively. |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Jan. 30, 2022 | |
Line of Credit Facility [Abstract] | |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS CREDIT LINE On February 6, 2018, the Company established a line of credit with 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 January 30, 2022 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 January 30, 2022 and January 31, 2021, there were no borrowings outstanding on this line of credit. Under the line of credit, the Company may elect that the 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%. On March 25, 2022, the Company amended the credit agreement to extend the maturity date to March 25, 2024, and among other things, increase the maximum revolver commitment to $40.0 million, subject to borrowing base and availability restrictions. Availability is based on eligible accounts receivable and inventory. The amended agreement contains a financial covenant that requires us to maintain undrawn availability under the credit facility of at least 10% of the lesser of (i) the aggregate commitments in the amount of $40.0 million and (ii) the amounts available under the credit facility based on eligible accounts receivable and inventory. |
Segment Information
Segment Information | 12 Months Ended |
Jan. 30, 2022 | |
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 the 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 total sales. The Company’s sales by product which are considered one segment are as follows: Fiscal year ending January 30, 2022 January 31, 2021 February 2, 2020 Sactionals $ 436,588 $ 271,018 $ 188,436 Sacs 52,478 44,975 39,641 Other 9,173 4,745 5,300 $ 498,239 $ 320,738 $ 233,377 |
Barter Arrangements
Barter Arrangements | 12 Months Ended |
Jan. 30, 2022 | |
Barter Arrangements [Abstract] | |
BARTER ARRANGEMENTS | BARTER ARRANGEMENTS The Company has a bartering arrangement with a third-party vendor, whereby the Company will provide inventory in exchange for media credits. The Company exchanged $1.5 million, $3.2 million, and $1.1 million of inventory plus the cost of freight for certain media credits during fiscal 2022, fiscal 2021, and fiscal 2020, respectively. The Company had $3.4 million and $2.5 million of unused media credits remaining as of January 30, 2022 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. |
Basis of Presentation, Operat_2
Basis of Presentation, Operations and Liquidity, and Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of the Company and its subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. |
FISCAL YEAR | FISCAL YEARThe Company’s fiscal year is determined on a 52/53 week basis ending on the Sunday closest to February 1. Hereinafter, the fiscal years ended January 30, 2022, January 31, 2021 and February 2, 2020 are referred to as fiscal 2022, 2021 and 2020, respectively. Fiscal 2022, 2021 and 2020 were 52-week fiscal years. |
USE OF ESTIMATES | USE OF ESTIMATES The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically and the effects of the revisions are reflected in the period the change is determined. |
REVENUE RECOGNITION | REVENUE RECOGNITION The Company implemented Accounting Standards Update ("ASU") 2015-04, Revenue from Contracts with Customers (Accounting Standards Codification Topic 606, “ASC 606”), in the first quarter of fiscal 2020 using modified retrospective method, which required the Company to apply the new guidance retrospectively to revenue transactions completed on or after the effective date. Adopting this new standard had no material financial impact on our consolidated financial statements but did result in enhanced presentation and disclosures. Our revenue consists substantially of product sales. The Company reports product sales net of discounts and recognize 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 statement of operations and an increase in inventory and customers returns liability on the balance sheet. As of January 30, 2022, there was a returns allowance of $2.0 million which was in accrued expenses and $0.4 million associated with sales returns in merchandise inventories. As of January 31, 2021, there was a returns allowance of $2.2 million which was in accrued expenses and $0.3 million associated with sales returns 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 balance sheet. As of January 30, 2022 and January 31, 2021, the Company recorded under customer deposit liabilities the amount of $13.3 million and $6.0 million, respectively. During the fiscal year ended January 30, 2022, the Company recognized $6.0 million related to its customer deposits from fiscal 2021. During the fiscal year ended January 31, 2021, the Company recognized $1.7 million from fiscal 2020. During the fiscal year ended February 2, 2020, the Company recognized $1.1 million from fiscal 2019. Under ASC 606, the Company has 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. Accordingly, the Company records the expenses for shipping and handling activities at the same time the Company recognizes 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 entity 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 showrooms and through the Internet. The other channel predominantly represents sales through the use of online and in store pop-up shops, shop-in-shops, and barter inventory transactions. In store pop-up-shops are staffed with associates trained to demonstrate and sell our product. The following represents sales disaggregated by channel: For the fiscal years ended January 30, 2022 January 31, 2021 February 2, 2020 Showrooms $ 298,989 $ 146,150 $ 148,004 Internet 150,622 151,065 55,781 Other 48,628 23,523 29,592 Total net sales $ 498,239 $ 320,738 $ 233,377 The Company has no foreign operations and its sales to foreign countries was less than .01% of total net sales in fiscal 2022, 2021, and 2020. The Company had no customers in fiscal 2022, 2021, or 2020 that comprise more than 10% of total net sales. See Note 11 for sales disaggregated by product . |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS The Company considers all highly liquid investments with a maturity at purchase of three months or less to be cash equivalents. The Company has deposits with financial institutions that maintain Federal Deposit Insurance Corporation “FDIC” deposit insurance up to $250,000 per depositor. The portion of the deposit in excess of this limit represents a credit risk to the Company. Due to the high cash balance maintained by the Company, the Company does maintain depository balances in excess of the insured amounts. |
TRADE ACCOUNTS RECEIVABLE | TRADE ACCOUNTS RECEIVABLE Trade accounts receivable are carried at their estimated realizable amount and do not bear interest. Management determines the allowance for doubtful accounts by regularly evaluating individual customer accounts, considering the customer’s financial condition, and credit history, and general and industry current economic conditions. Trade accounts receivable are reserved for when deemed uncollectible. Recoveries of amounts previously written off are recorded when received. Historically, collection losses have been immaterial as a significant portion of the Company’s receivables are related to individual credit card transactions and three wholesale customers for which the Company has no history of collection losses. Management has concluded that an allowance was not necessary at January 30, 2022 and January 31, 2021, respectively. |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS The Company recognizes payments made for goods and services to be received in the near future as prepaid expenses and other current assets. Prepaid expenses and other current assets consist primarily of payments related to insurance premiums, catalog costs, barter credits, deposits, prepaid rent, prepaid inventory, and other costs. |
MERCHANDISE INVENTORIES | MERCHANDISE INVENTORIES Merchandise inventories are comprised of finished goods which are carried at the lower of cost or net realizable value. Cost is determined on a weighted-average method basis. Merchandise inventories consist primarily of foam filled furniture, sectional couches, and related accessories. The Company adjusts its inventory for obsolescence based on historical trends, aging reports, specific identification and its estimates of future retail sales prices. In addition, the Company includes capitalized freight and warehousing costs in inventory relative to the finished goods in inventory. |
GIFT CERTIFICATES AND MERCHANDISE CREDITS | GIFT CERTIFICATES AND MERCHANDISE CREDITS The Company sells gift certificates and issues merchandise credits to its customers in the showrooms and through its website. Revenue associated with gift certificates and merchandise credits is deferred until redemption of the gift certificate and merchandise credits. The Company did not recognize any breakage revenue in fiscal 2022, fiscal 2021 or fiscal 2020 as the Company continues to honor all outstanding gift certificates. |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment are stated at cost less accumulated depreciation and amortization. Office and showroom furniture and equipment, software and vehicles are depreciated using the straight-line method over their estimated useful lives. Leasehold improvements are amortized using the straight-line method over their expected useful lives or lease term, whichever is shorter. Expenditures for repairs and maintenance are charged to expense as incurred. For assets sold or otherwise disposed of, the cost and related accumulated depreciation or amortization is removed from the accounts, and any resulting gain or loss is reflected in operations for the period. Expenditures for major betterments that extend the useful lives of property and equipment are capitalized. |
GOODWILL | GOODWILL Goodwill represents the excess of the purchase price over the fair value of the identified net assets of each business acquired. Goodwill and other indefinite-lived intangible assets are tested annually for impairment in the fourth fiscal quarter and in interim periods if certain events occur indicating that the carrying amounts may be impaired. If a qualitative assessment is used and the Company determines that the fair value of a reporting unit or indefinite-lived intangible asset is more likely than not (i.e., a likelihood of more than 50%) less than its carrying amount, a quantitative impairment test will be performed. If goodwill is quantitatively assessed for impairment, a two-step approach is applied. In the first step, the Company compares the fair value of the reporting unit, generally defined as the same level as or one level below an operating segment, to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is considered not impaired and the Company is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the second step of the impairment test must be performed in order to determine the implied fair value of the reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then an impairment loss equal to the difference would be recorded. There were no impairments during fiscal 2022, 2021, or 2020. |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Intangible assets with finite useful lives, including patents, trademarks, and other intangible assets are being amortized on a straight-line basis over their estimated lives. Other intangible assets with finite useful lives are reviewed for impairment whenever events or circumstances indicate that the carrying amount of the asset might not be recovered. Patents and licenses are recorded at cost and amortized on a straight-line basis over the estimated remaining life of the patent or license. Ongoing maintenance costs are expensed as incurred. If the estimates of the useful lives should change, the Company will amortize the remaining book value over the remaining useful life, or if it is deemed to be impaired a write-down of the value of the asset may be required at such time. There were no impairments during either fiscal 2022, 2021, or 2020. |
IMPAIRMENT OF LONG-LIVED ASSETS | IMPAIRMENT OF LONG-LIVED ASSETS The Company’s long-lived assets consist of property and equipment and right of use assets from leases. Property and equipment includes leasehold improvements, and other intangible assets. Long-lived assets are reviewed for potential impairment at such time that events or changes in circumstances indicate that the carrying amount of an asset might not be recovered. The Company evaluates for impairment at the individual showroom level, which is the lowest level at which individual cash flows can be identified. When evaluating long-lived assets for potential impairment, the Company will first compare the carrying amount of the assets to the future undiscounted cash flows for the respective long-lived asset. If the estimated future cash flows are less than the carrying amounts of the assets, an impairment loss calculation is prepared. An impairment loss is measured based upon the excess of the carrying value of the asset over its estimated fair value which is generally based on an estimated future discounted cash flow. If required, an impairment loss is recorded for that portion of the asset’s carrying value in excess of fair value. In fiscal 2022, the Company recognized impairment charges totaling $0.6 million associated with showroom-level right of use lease assets. During fiscal 2021, the Company recorded impairment charges of $0.2 million, associated with the assets of an underperforming retail location. During fiscal 2020 there were no impairment charges. The impairments in fiscal 2022 and fiscal were 2021 calculated using a discounted cash flow model and were recorded in selling, general and administrative in the Company’s Consolidated Statements of Operations. |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and administrative expenses include all operating costs, other than advertising and marketing expense, not included in cost of merchandise sold. These expenses include all payroll and payroll-related expenses; showroom expenses, including occupancy costs related to showroom operations, such as rent and common area maintenance; occupancy and expenses related to many of our operations at our headquarters, including utilities, equity based compensation, financing related expenses and public company expenses; and credit card transaction fees. Selling, general and administrative expenses as a percentage of net sales is usually higher in lower volume quarters and lower in higher volume quarters because a significant portion of the costs are relatively fixed. |
ADVERTISING AND CATALOG COSTS | ADVERTISING AND CATALOG COSTS The Company capitalizes direct response advertising costs, which consist primarily of television advertising, postcards, catalogs and their mailing costs, and recognizes expense over the related revenue stream if the following conditions are met (1) the primary purpose of the advertising is to elicit sales to customers who could be shown to have responded specifically to the advertising, and (2) the direct-response advertising results in probable and estimable future benefits. Direct-response advertising costs, which are included in prepaid expenses and other current assets, are amortized commencing the date the catalogs and post cards are mailed and the television commercial airs through the estimated period of time for the Company has determined the related advertising impacts sales. There was no balance as of January 30, 2022 and January 31, 2021. As of January 30, 2022 and January 31, 2021 the Company did not have any capitalized deferred direct-response television, postcard and catalog costs. Advertising costs not associated with direct-response advertising are expensed as incurred and were $65.1 million in fiscal 2022, $41.9 million in fiscal 2021, and $29.2 million in fiscal 2020. |
SHOWROOM PREOPENING AND CLOSING COSTS | SHOWROOM PREOPENING AND CLOSING COSTS Non-capital expenditures incurred in preparation for opening new retail showrooms are expensed as incurred and included in selling, general and administrative expenses. The Company continually evaluates the profitability of its showrooms. When the Company closes or relocates a showroom, the Company incurs unrecoverable costs, including the net book value of abandoned fixtures and leasehold improvements, lease termination payments, costs to transfer inventory and usable fixtures and other costs of vacating the leased location. Such costs are expensed as incurred and are included in selling, general and administrative expenses. |
PRODUCT WARRANTY | PRODUCT WARRANTY Depending on the type of merchandise, the Company offers either a three-year limited warranty or a lifetime warranty. The Company’s warranties require it to repair or replace defective products at no cost to the customer. At the time product revenue is recognized, the Company reserves for estimated future costs that may be incurred under its warranties based on historical experience. The Company periodically reviews the adequacy of its recorded warranty liability. Product warranty expense, without any reserve adjustments, was approximately $0.5 million in fiscal 2022, $0.7 million in fiscal 2021, and $0.9 million in fiscal 2020. The decreases in fiscal 2022 and fiscal 2021 are related to fewer number of warranty claims. Warranty reserve was $0.7 million as of January 30, 2022 and $0.6 million as of January 31, 2021. |
OPERATING LEASES | OPERATING LEASES During Fiscal 2022, the Company adopted ASU No. 2016-02, Leases (Topic 842), see NEW ACCOUNTING PRONOUNCEMENTS section of Note 1 . The Company determines if a long-term contractual obligation is a lease at inception. The majority of our operating leases relate to company showrooms. We also lease our corporate facilities. These operating leases expire at various dates through fiscal 2032. Showroom leases may include options that allow us to extend the lease term beyond the initial base period, subject to terms agreed upon at lease inception. Some leases also include early termination options, which can be exercised under specific conditions. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company records lease liabilities at the present value of the lease payments not yet paid, discounted at the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. As the Company's leases do not provide an implicit interest rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We recognize operating lease cost over the estimated term of the lease, which includes options to extend lease terms that are reasonably certain of being exercised, starting when possession of the property is taken from the landlord, which normally includes a construction period prior to the showroom opening. When a lease contains a predetermined fixed escalation of the fixed rent, we recognize the related operating lease cost on a straight-line basis over the lease term. In addition, certain of our lease agreements include variable lease payments, such as payments based on a percentage of sales that are in excess of a predetermined level and/or increases based on a change in the consumer price index or fair market value. These variable lease payments are excluded from minimum lease payments and are included in the determination of net lease cost when it is probable that the expense has been incurred and the amount can be reasonably estimated. If an operating lease asset is impaired, the remaining operating lease asset will be amortized on a straight-line basis over the remaining lease term. See Note 7 of the Notes to Consolidated Financial Statements for related disclosures. |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The carrying amount of the Company’s financial instruments classified as current assets and current liabilities approximate fair values based on the short-term nature of the accounts. |
EQUITY-BASED COMPENSATION | EQUITY-BASED COMPENSATION The Company’s 2017 Equity Plan provides for awards in the form of options, stock appreciation rights, restricted stock awards, restricted stock units, performance shares, cash-based awards and other stock-based awards. The plan allows for the issuance of up to 2,104,889 shares at January 30, 2022 and January 31, 2021. All awards shall be granted within 10 years from the effective date of the plan. The unit vesting was based on both time and performance. See Note 8 for additional disclosure. |
SHIPPING AND HANDLING | SHIPPING AND HANDLING Shipping and handling charges billed to customers are included in revenue. Shipping and handling costs incurred are included in cost of merchandise sold and include inbound freight and tariff costs relative to inventory sold, warehousing, and last mile shipping to our customers. Shipping and handling costs were $112.8 million in fiscal 2022, $63.1 million in fiscal 2021, and $47.1 million in fiscal 2020. |
INCOME TAXES | INCOME TAXES The Company accounts for uncertainty in income taxes using a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes. In connection with the 2017 reorganization, the intent was that the net operating losses (NOLs) of SAC Acquisition, LLC, a limited liability company that had been historically treated as a C-corporation for federal and state income tax purposes, were to be inherited by the Company. The Company filed a request for a private letter ruling requesting additional time to make a check the box election pursuant to Treas. Reg. 301.7701-3. In PLR-109713-19 dated October 22, 2019 the Company was granted an extension of time of 120 days to file form 8832 “Entity Classification Election.” The completed Form 8832 was filed with The IRS on November 11, 2019. The Company has maintained the position that the NOLs were inherited from SAC Acquisition in the 2017 reorganization and consistently maintained a full valuation allowance against its NOLs as they were part of deferred income tax assets not likely to be realized prior to fiscal 2022. During fiscal 2022, the Company recorded a deferred tax asset of $9.8 million. Previous to fiscal 2022, the resolution of the uncertain tax position regarding the Company’s NOL carry forward during the year did not have an impact on the Company’s financial position or results of operations. As of January 30, 2022, there were no uncertain tax positions. See Note 6 for additional disclosures. Deferred income taxes are provided on temporary differences between the income tax basis of assets and liabilities and the amounts reported in the financial statements and on net operating loss and tax credit carry forwards. A valuation allowance is provided for that portion of deferred income tax assets not likely to be realized. Deferred income tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. |
BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE | 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. In fiscal 2022, the effects of 533,333 unvested restricted stock units, 495,366 stock options, and 281,750 common stock warrants were included in the diluted share calculation. In fiscal 2021, the effects of 655,558 unvested restricted stock units and 293,973 common stock warrants were included in the diluted share calculation. The effects of 495,366 stock options were excluded in the diluted net income per common share calculation because the effects of including theses potentially dilutive shares was antidilutive. In fiscal 2020, there were 1,717,539 of potentially dilutive shares which may be issued in the future, including 183,053 unvested restricted stock units, 495,366 stock options, and 1,039,120 common stock warrants. These shares were excluded in the diluted net loss per common share calculation as the effects of including theses potentially dilutive shares was antidilutive. |
NEW ACCOUNTING PRONOUNCEMENTS | NEW 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 following new accounting pronouncements were adopted in fiscal 2022: In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASC 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. In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting |
Basis of Presentation, Operat_3
Basis of Presentation, Operations and Liquidity, and Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disaggregation of revenue | The following represents sales disaggregated by channel: For the fiscal years ended January 30, 2022 January 31, 2021 February 2, 2020 Showrooms $ 298,989 $ 146,150 $ 148,004 Internet 150,622 151,065 55,781 Other 48,628 23,523 29,592 Total net sales $ 498,239 $ 320,738 $ 233,377 |
Schedule of accounts receivable | Breakdown of accounts receivable is as follows: As of January 30, 2022 As of As of January 31, 2021 Credit card receivables $ 3,186 $ 2,964 Wholesale receivables 5,361 1,549 $ 8,547 $ 4,513 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 30, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of property and equipment | Property and equipment as of January 30, 2022 and January 31, 2021 consists of: Estimated Life 2022 2021 Office and store furniture, and equipment 5 Years $ 6,497 $ 4,803 Software 3 Years 3,625 3,628 Leasehold improvements Shorter of estimated useful life or lease term 40,788 33,828 Computers 3 Years 2,138 2,926 Tools, Dies, Molds 5 Years 764 215 Vehicles 5 Years 497 — Construction in process NA 2,765 2,098 57,074 47,498 Accumulated depreciation and amortization (22,937) (21,630) $ 34,137 $ 25,868 |
Other Intangible Assets, Net (T
Other Intangible Assets, Net (Tables) | 12 Months Ended |
Jan. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of other intangible assets | A summary of other intangible assets follows: January 30, 2022 Estimated Life Gross Carrying Amount Accumulated Amortization Net carrying amount Patents 10 Years $ 2,838 $ (1,626) $ 1,212 Trademarks 3 Years 1,390 (1,189) 201 Other intangibles 5 Years 840 (840) — Total $ 5,068 $ (3,655) $ 1,413 January 31, 2021 Estimated Life Gross Carrying Amount Accumulated Amortization Net carrying amount Patents 10 years $ 2,388 $ (1,129) $ 1,259 Trademarks 3 years 1,239 (981) 258 Other intangibles 5 years 840 (840) — Total $ 4,467 $ (2,950) $ 1,517 |
Schedule of expected amortization expense associated with other intangible assets | Expected amortization expense by fiscal year for these other intangible assets follows (in thousands): 2023 $ 246 2024 231 2025 178 2026 161 2027 151 Thereafter 446 $ 1,413 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Jan. 30, 2022 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of other prepaid and other current assets | A summary of other prepaid and other current assets follows (in thousands): 2022 2021 Prepaid insurance $ 1,667 $ 1,236 Prepaid catalogue costs and related 4,794 588 Barter credits 3,407 2,521 Deposits 421 997 Prepaid rent 62 1,704 Prepaid inventory 475 102 Prepaid software licenses 790 967 Tenant allowance receivable 2,781 1,464 Other 1,329 549 $ 15,726 $ 10,128 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jan. 30, 2022 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses | A summary of accrued expenses follows (in thousands): 2022 2021 Accrued freight and shipping $ 23,683 $ 4,524 Accrued advertising fees 4,150 2,015 Accrued warehouse expenses 2,671 1,288 Accrued professional fees 2,268 1,590 Customer return liability 2,026 2,227 Accrued occupancy 1,284 937 Accrued state income taxes 1,007 7 Accrued insurance 973 541 Warranty liability 689 606 Accrued credit card fees 542 425 Other accrued expenses 1,204 3,027 $ 40,497 $ 17,187 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred income taxes | The components of deferred income taxes follow: 2022 2021 Deferred Income Tax Assets Federal net operating loss carryforward $ 2,082 $ 7,763 State net operating loss carryforward 1,403 1,818 Intangible assets 397 286 Accrued liabilities 5,646 4,423 Equity-based compensation 2,032 1,083 Property and equipment — 640 Merchandise inventories 689 330 Charitable Contributions 12 10 Total Deferred Income Tax Assets 12,261 16,353 Deferred Income Tax Liabilities Property and equipment (2,425) — Valuation Allowance — (16,353) Net Deferred Income Tax Asset $ 9,836 $ — |
Schedule of effective income tax rate reconciliation | The income tax provision differs from the amount obtained by applying the statutory Federal income tax rate to pre-tax income as follows: 2022 2021 2020 Provision (benefit) at Federal Statutory rates $ 8,035 $ 3,111 $ (3,184) Permanent adjustments (1,039) (411) (848) State tax, net of Federal provision (benefit) 1,737 496 (582) Change in state deferred tax 146 — — Federal True-ups (164) 61 (394) Uncertain tax positions- NOLS — — (10,753) Change in valuation allowance (16,353) (3,171) 15,804 Income (benefit) tax provision $ (7,638) $ 86 $ 43 Differences in terms of percentages are as follows: 2022 2021 2020 Provision (benefit) at Federal Statutory rates 21.0 % 21.0 % (21.0) % Permanent adjustments (2.7) % (2.8) % (5.6) % State tax, net of Federal provision (benefit) 4.5 % 3.4 % (3.8) % Change in state deferreds 0.4 % — % — % Federal True-ups (0.4) % 0.4 % (2.6) % Uncertain tax positions- NOLS — % — % (70.9) % Change in valuation allowance (42.7) % (21.4) % 104.2 % Income tax provision (20.0) % 0.6 % 0.3 % |
Schedule of federal, state and local corporate income taxes | The Company is subject to federal, state and local corporate income taxes. The components of the provision for income taxes reflected on the consolidated statements of operations are set forth below: 2022 2021 2020 Current taxes: U.S. federal $ — $ — $ — State and local 2,198 86 43 Total current tax expense $ 2,198 $ 86 $ 43 Deferred taxes: U.S. federal $ (7,254) $ — $ — State and local (2,582) — — Total deferred tax expense (benefit) (9,836) — — Total tax provision $ (7,638) $ 86 $ 43 |
Schedule of unrecognized tax benefits | 2022 2021 2020 Beginning balance $ — $ — $ 10,753 Additions for tax positions acquired — — — Additions for tax positions related to current year — — — Tax positions of prior years: Payments — — — Settlements — — — Release — — (10,753) Ending balance $ — $ — $ — |
Commitments, Contingencies an_2
Commitments, Contingencies and Related Parties (Tables) | 12 Months Ended |
Jan. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of financial statement information | The Company’s lease terms and rates are as follows: January 30, 2022 Weighted average remaining lease term (in years) Operating Leases 6.29 Weighted average discount rate 3.44 % Operating Leases The following table discloses the location and amount of our operating lease costs within our consolidated balance sheets: (amounts in thousands) Balance sheet location January 30, 2022 Assets Operating leases Operating lease right-of-use assets (non-current) $ 100,891 Liabilities Current: Operating leases Current operating lease liabilities $ 16,382 Noncurrent: Operating leases Operating lease liability, long term $ 96,574 Total lease liabilities $ 112,956 |
Schedule of expected future annual minimum rental 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 consolidated balance sheet as of January 30, 2022 in thousands: (amounts in thousands) 2023 $ 20,493 2024 20,020 2025 18,756 2026 16,904 2027 14,459 Thereafter 40,329 Total undiscounted future minimum lease payments 130,961 Less: imputed interest (18,005) Total present value of lease obligations 112,956 Less: current operating lease liability (16,382) Operating lease liability- long term $ 96,574 |
Schedule of supplemental cash flow information | Supplemental Cash Flow information and non-cash activity related to our operating leases is as follows (in thousands): (amounts in thousands) For the year ended January 30, 2022 Operating cash flow information: Amounts paid on operating lease liabilities $ 14,400 Non-cash activities Right-of-use assets obtained in exchange for lease obligations $ 116,048 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of warrant activity | The following represents warrant activity during fiscal 2022 and 2021: Average exercise price Number of warrants Weighted average remaining contractual life (in years) Outstanding at February 3, 2019 16.83 1,067,475 2.93 Warrants issued 16.00 18,166 2.40 Expired and canceled — — — Exercised 16.00 (46,521) 2.15 Outstanding at February 2, 2020 16.83 1,039,120 1.93 Warrants issued — — — Expired and canceled — 0 — Exercised 16.00 (745,147) 0.41 Outstanding at January 31, 2021 19.07 293,973 2.57 Warrants issued — — — Expired and canceled 9.83 (98) — Exercised 16.00 (12,125) 0.09 Outstanding at January 30, 2022 $ 19.20 281,750 1.41 |
Schedule of stock option activity | A summary of the status of our stock options as of January 30, 2022, January 31, 2021, and February 2, 2020 and the changes during fiscal years then ended, is presented below: For the years ended January 30, 2022, January 31, 2021, and February 2, 2020 Number of options Weighted average exercise price Weighted average remaining contractual life (in years) Average intrinsic value Outstanding at February 3, 2019 — $ — 0 — Granted 495,366 38.10 Canceled and forfeited — $ — Outstanding at February 2, 2020 495,366 $ 38.10 2.34 — Granted — — Canceled and forfeited — — Outstanding at January 31, 2021 495,366 $ 38.10 3.35 — Granted — $ — Canceled and forfeited — — Outstanding at January 30, 2022 495,366 $ 38.10 2.35 $ 28.68 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 January 30, 2022, January 31, 2021, February 2, 2020, and and changes during fiscal years then ended, is presented below: Number of shares Weighted average grant date fair value Unvested at February 3, 2019 377,286 $ 11.16 Granted 130,898 23.63 Forfeited (20,470) 16.21 Vested (304,661) 12.75 Unvested at February 2, 2020 183,053 $ 21.34 Granted 627,940 16.94 Forfeited (5,701) 11.86 Vested (149,734) 16.24 Unvested at January 31, 2021 655,558 18.86 Granted 94,985 78.53 Forfeited (42,516) 22.67 Vested (174,694) 19.57 Unvested at January 30, 2022 533,333 $ 28.41 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jan. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of operating segments | The Company’s sales by product which are considered one segment are as follows: Fiscal year ending January 30, 2022 January 31, 2021 February 2, 2020 Sactionals $ 436,588 $ 271,018 $ 188,436 Sacs 52,478 44,975 39,641 Other 9,173 4,745 5,300 $ 498,239 $ 320,738 $ 233,377 |
Basis of Presentation, Operat_4
Basis of Presentation, Operations and Liquidity, and Significant Accounting Policies - Narrative (Details) | 12 Months Ended | |||
Jan. 30, 2022USD ($)showroomshares | Jan. 31, 2021USD ($)shares | Feb. 02, 2020USD ($)shares | Feb. 01, 2021USD ($) | |
Operations and Significant Accounting Policies (Details) [Line Items] | ||||
Number of showrooms | showroom | 146 | |||
Accrued expenses | $ 2,000,000 | $ 2,200,000 | ||
Sales return | 400,000 | 300,000 | ||
Customer deposit liabilities | 13,300,000 | 6,000,000 | ||
Revenue recognized from customer deposits | 6,000,000 | 1,700,000 | $ 1,100,000 | |
Goodwill impairment | 0 | 0 | 0 | |
Intangible asset impairment | 0 | 0 | 0 | |
Impairment of long-lived assets | 554,000 | 245,000 | 0 | |
Advertising expenses | $ 65,100,000 | 41,900,000 | 29,200,000 | |
Product warranty period | 3 years | |||
Warranty expense | $ 500,000 | 700,000 | 900,000 | |
Warranty reserve | $ 700,000 | $ 600,000 | ||
Maximum shares allowed for issuance (in shares) | shares | 2,104,889 | 2,104,889 | ||
Effective date of equity plan | 10 years | |||
Shipping and handling costs | $ 112,800,000 | $ 63,100,000 | $ 47,100,000 | |
Deferred tax asset | 9,836,000 | 0 | ||
Potentially dilutive shares (in shares) | shares | 1,717,539 | |||
Operating lease right-of-use assets | 100,891,000 | $ 0 | $ 90,000,000 | |
Total present value of lease obligations | $ 112,956,000 | 97,000,000 | ||
Deferred rent | $ 6,700,000 | |||
Restricted stock units | ||||
Operations and Significant Accounting Policies (Details) [Line Items] | ||||
Potentially dilutive shares (in shares) | shares | 533,333 | 655,558 | 183,053 | |
Stock options | ||||
Operations and Significant Accounting Policies (Details) [Line Items] | ||||
Potentially dilutive shares (in shares) | shares | 495,366 | 495,366 | 495,366 | |
Warrants | ||||
Operations and Significant Accounting Policies (Details) [Line Items] | ||||
Potentially dilutive shares (in shares) | shares | 281,750 | 293,973 | 1,039,120 | |
Wholesale Receivables | Customer Concentration Risk | Two Customers | ||||
Operations and Significant Accounting Policies (Details) [Line Items] | ||||
Concentration risk | 100.00% | 97.00% | ||
Foreign Countries (less than) | Revenue Benchmark | Geographic Concentration Risk | ||||
Operations and Significant Accounting Policies (Details) [Line Items] | ||||
Concentration risk | 1.00% | 1.00% | 1.00% |
Basis of Presentation, Operat_5
Basis of Presentation, Operations and Liquidity, and Significant Accounting Policies (Details) - Disaggregation of revenue - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2022 | Jan. 31, 2021 | Feb. 02, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 498,239 | $ 320,738 | $ 233,377 |
Showrooms | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | 298,989 | 146,150 | 148,004 |
Internet | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | 150,622 | 151,065 | 55,781 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 48,628 | $ 23,523 | $ 29,592 |
Basis of Presentation, Operat_6
Basis of Presentation, Operations and Liquidity, and Significant Accounting Policies (Details) - Schedule of accounts receivable - USD ($) $ in Thousands | Jan. 30, 2022 | Jan. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Credit card receivables | $ 3,186 | $ 2,964 |
Wholesale receivables | 5,361 | 1,549 |
Trade accounts receivable | $ 8,547 | $ 4,513 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - Schedule of property and equipment - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 30, 2022 | Jan. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 57,074 | $ 47,498 |
Accumulated depreciation and amortization | (22,937) | (21,630) |
Total property and equipment, net | $ 34,137 | 25,868 |
Office and store furniture, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Life | 5 years | |
Total property and equipment, gross | $ 6,497 | 4,803 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Life | 3 years | |
Total property and equipment, gross | $ 3,625 | 3,628 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 40,788 | 33,828 |
Computers | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Life | 3 years | |
Total property and equipment, gross | $ 2,138 | 2,926 |
Tools, Dies, Molds | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Life | 5 years | |
Total property and equipment, gross | $ 764 | 215 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Life | 5 years | |
Total property and equipment, gross | $ 497 | 0 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 2,765 | $ 2,098 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2022 | Jan. 31, 2021 | Feb. 02, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 7.2 | $ 6.1 | $ 4.9 |
Asset disposals | 6.3 | 0.3 | 0.4 |
Asset disposals, accumulated depreciation | $ 5.8 | $ 0.3 | $ 0.3 |
Other Intangible Assets, Net (D
Other Intangible Assets, Net (Details) - Schedule of other intangible assets - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 30, 2022 | Jan. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 5,068 | $ 4,467 |
Accumulated Amortization | (3,655) | (2,950) |
Net carrying amount | $ 1,413 | $ 1,517 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Life | 10 years | 10 years |
Gross Carrying Amount | $ 2,838 | $ 2,388 |
Accumulated Amortization | (1,626) | (1,129) |
Net carrying amount | $ 1,212 | $ 1,259 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Life | 3 years | 3 years |
Gross Carrying Amount | $ 1,390 | $ 1,239 |
Accumulated Amortization | (1,189) | (981) |
Net carrying amount | $ 201 | $ 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 |
Other Intangible Assets, Net -
Other Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2022 | Jan. 31, 2021 | Feb. 02, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of other intangible assets | $ 705 | $ 513 | $ 264 |
Other Intangible Assets, Net _2
Other Intangible Assets, Net (Details) - Schedule of expected amortization expense associated with other intangible assets - USD ($) $ in Thousands | Jan. 30, 2022 | Jan. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 246 | |
2024 | 231 | |
2025 | 178 | |
2026 | 161 | |
2027 | 151 | |
Thereafter | 446 | |
Net carrying amount | $ 1,413 | $ 1,517 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - Schedule of other prepaid and other current assets - USD ($) $ in Thousands | Jan. 30, 2022 | Jan. 31, 2021 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid insurance | $ 1,667 | $ 1,236 |
Prepaid catalogue costs and related | 4,794 | 588 |
Barter credits | 3,407 | 2,521 |
Deposits | 421 | 997 |
Prepaid rent | 62 | 1,704 |
Prepaid inventory | 475 | 102 |
Prepaid software licenses | 790 | 967 |
Tenant allowance receivable | 2,781 | 1,464 |
Other | 1,329 | 549 |
Total prepaid expenses and other current assets | $ 15,726 | $ 10,128 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands | Jan. 30, 2022 | Jan. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accrued freight and shipping | $ 23,683 | $ 4,524 |
Accrued advertising fees | 4,150 | 2,015 |
Accrued warehouse expenses | 2,671 | 1,288 |
Accrued professional fees | 2,268 | 1,590 |
Customer return liability | 2,026 | 2,227 |
Accrued occupancy | 1,284 | 937 |
Accrued state income taxes | 1,007 | 7 |
Accrued insurance | 973 | 541 |
Warranty liability | 689 | 606 |
Accrued credit card fees | 542 | 425 |
Other accrued expenses | 1,204 | 3,027 |
Total accrued expenses | $ 40,497 | $ 17,187 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 30, 2022 | Jan. 31, 2021 | Feb. 02, 2020 | Dec. 31, 2019 | Dec. 31, 2011 | |
Income Taxes [Line Items] | |||||
State taxes (less than for fiscal year 2020) | $ 1,737 | $ 496 | $ (582) | ||
Net operating loss carryforwards available for federal income tax | 9,900 | 37,000 | |||
State net operating loss carryforwards | 22,200 | 30,400 | |||
Annual limitation value | 7,700 | $ 5,900 | $ 300 | ||
Additional limitation | 40,000 | ||||
Increased (decreased) the valuation allowance | 16,400 | (3,200) | 15,800 | ||
State Taxes | |||||
Income Taxes [Line Items] | |||||
State taxes (less than for fiscal year 2020) | $ 2,200 | $ 100 | $ 100 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of deferred income taxes - USD ($) $ in Thousands | Jan. 30, 2022 | Jan. 31, 2021 |
Deferred Income Tax Assets | ||
Federal net operating loss carryforward | $ 2,082 | $ 7,763 |
State net operating loss carryforward | 1,403 | 1,818 |
Intangible assets | 397 | 286 |
Accrued liabilities | 5,646 | 4,423 |
Equity-based compensation | 2,032 | 1,083 |
Property and equipment | 0 | 640 |
Merchandise inventories | 689 | 330 |
Charitable Contributions | 12 | 10 |
Total Deferred Income Tax Assets | 12,261 | 16,353 |
Deferred Income Tax Liabilities | ||
Property and equipment | (2,425) | 0 |
Valuation Allowance | 0 | (16,353) |
Net Deferred Income Tax Asset | $ 9,836 | $ 0 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of federal income tax rate to pre-tax income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2022 | Jan. 31, 2021 | Feb. 02, 2020 | |
Income Tax Disclosure [Abstract] | |||
Provision (benefit) at Federal Statutory rates | $ 8,035 | $ 3,111 | $ (3,184) |
Permanent adjustments | (1,039) | (411) | (848) |
State tax, net of Federal provision (benefit) | 1,737 | 496 | (582) |
Change in state deferred tax | 146 | 0 | 0 |
Federal True-ups | (164) | 61 | (394) |
Uncertain tax positions- NOLS | 0 | 0 | (10,753) |
Change in valuation allowance | (16,353) | (3,171) | 15,804 |
Income (benefit) tax provision | $ (7,638) | $ 86 | $ 43 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of federal, state and local corporate income taxes - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2022 | Jan. 31, 2021 | Feb. 02, 2020 | |
Current taxes: | |||
U.S. federal | $ 0 | $ 0 | $ 0 |
State and local | 2,198 | 86 | 43 |
Total current tax expense | 2,198 | 86 | 43 |
Deferred taxes: | |||
U.S. federal | (7,254) | 0 | 0 |
State and local | (2,582) | 0 | 0 |
Total deferred tax expense (benefit) | (9,836) | 0 | 0 |
Income (benefit) tax provision | $ (7,638) | $ 86 | $ 43 |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of percentage | 12 Months Ended | ||
Jan. 30, 2022 | Jan. 31, 2021 | Feb. 02, 2020 | |
Income Tax Disclosure [Abstract] | |||
Provision (benefit) at Federal Statutory rates | 21.00% | 21.00% | 21.00% |
Permanent adjustments | (2.70%) | (2.80%) | 5.60% |
State tax, net of Federal provision (benefit) | 4.50% | 3.40% | 3.80% |
Change in state deferreds | 0.40% | 0.00% | 0.00% |
Federal True-ups | (0.40%) | 0.40% | 2.60% |
Uncertain tax positions- NOLS | 0.00% | 0.00% | 70.90% |
Change in valuation allowance | (42.70%) | (21.40%) | (104.20%) |
Income tax provision | (20.00%) | 0.60% | (0.30%) |
Income Taxes (Details) - Sche_5
Income Taxes (Details) - Schedule of unrecognized tax benefits - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2022 | Jan. 31, 2021 | Feb. 02, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 0 | $ 0 | $ 10,753 |
Additions for tax positions acquired | 0 | 0 | 0 |
Additions for tax positions related to current year | 0 | 0 | 0 |
Tax positions of prior years: | |||
Payments | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Release | 0 | 0 | (10,753) |
Ending balance | $ 0 | $ 0 | $ 0 |
Commitments, Contingencies an_3
Commitments, Contingencies and Related Parties - Schedule of lease terms and rates (Details) | Jan. 30, 2022 |
Commitments and Contingencies Disclosure [Abstract] | |
Weighted average remaining lease term, operating leases | 6 years 3 months 14 days |
Weighted average discount rate, operating leases | 3.44% |
Commitments, Contingencies an_4
Commitments, Contingencies and Related Parties - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jan. 30, 2022 | Jan. 31, 2021 | Feb. 02, 2020 | |
Commitments, Contingencies and Related Parties (Details) [Line Items] | |||
Lease expense | $ 18,900,000 | ||
Other lease expenses | 12,800,000 | ||
Impairment charges associated with ROU assets | 600,000 | $ 0 | |
Severance contingency potential exposure | 5,500,000 | ||
Inventory disposal | 600,000 | ||
Proceeds from insurance settlement | 1,200,000 | ||
Gain on recovery of insurance proceeds - lost profit margin | $ 632,000 | 0 | $ 0 |
Minimum | |||
Commitments, Contingencies and Related Parties (Details) [Line Items] | |||
Length of severance pay | 12 months | ||
Maximum | |||
Commitments, Contingencies and Related Parties (Details) [Line Items] | |||
Length of severance pay | 18 months | ||
Mistral Capital Management, LLC | |||
Commitments, Contingencies and Related Parties (Details) [Line Items] | |||
Management fees and expenses | $ 0 | 400,000 | 400,000 |
Amounts payable to related parties | 0 | 100,000 | |
Reimbursed out of pocket expenses | 0 | 100,000 | 100,000 |
Satori Capital, LLC | |||
Commitments, Contingencies and Related Parties (Details) [Line Items] | |||
Management fees and expenses | 0 | 100,000 | 100,000 |
Amounts payable to related parties | 0 | 100,000 | |
Reimbursed out of pocket expenses | 0 | 100,000 | 100,000 |
Blueport Commerce | |||
Commitments, Contingencies and Related Parties (Details) [Line Items] | |||
Amounts payable to related parties | 0 | 0 | |
Fees incurred sales transactions | $ 0 | 2,100,000 | $ 1,800,000 |
Fee incurred, termination of contract | $ 700,000 |
Commitments, Contingencies an_5
Commitments, Contingencies and Related Parties - Schedule of financial statement information (Details) - USD ($) $ in Thousands | Jan. 30, 2022 | Feb. 01, 2021 | Jan. 31, 2021 |
Assets | |||
Operating lease right-of-use assets | $ 100,891 | $ 90,000 | $ 0 |
Current Liabilities | |||
Current operating lease liabilities | 16,382 | 0 | |
Noncurrent: | |||
Operating Lease Liabilities, long term | 96,574 | $ 0 | |
Total present value of lease obligations | $ 112,956 | $ 97,000 |
Commitments, Contingencies an_6
Commitments, Contingencies and Related Parties (Details) - Schedule of future minimum payments for operating leases - USD ($) $ in Thousands | Jan. 30, 2022 | Feb. 01, 2021 | Jan. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | |||
2023 | $ 20,493 | ||
2024 | 20,020 | ||
2025 | 18,756 | ||
2026 | 16,904 | ||
2027 | 14,459 | ||
Thereafter | 40,329 | ||
Total undiscounted future minimum lease payments | 130,961 | ||
Less: imputed interest | (18,005) | ||
Total present value of lease obligations | 112,956 | $ 97,000 | |
Current operating lease liabilities | (16,382) | $ 0 | |
Operating Lease Liabilities, long term | $ 96,574 | $ 0 |
Commitment, Contingencies and R
Commitment, Contingencies and Related Parties - Schedule of supplemental cash flow information (Details) $ in Thousands | 12 Months Ended |
Jan. 30, 2022USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Amounts paid on operating lease liabilities | $ 14,400 |
Right-of-use assets obtained in exchange for lease obligations | $ 116,048 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands | Jun. 05, 2021trading_day$ / shares | Jun. 30, 2020shares | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($)trading_day$ / sharesshares | Jan. 30, 2022USD ($)shares | Jan. 31, 2021USD ($)shares | Feb. 02, 2020USD ($)trading_dayshares |
Class of Stock [Line Items] | |||||||
Warrants issued (in shares) | 5,625 | ||||||
Issuance of common shares (in shares) | 10,956 | ||||||
Warrants expired (in shares) | 98 | ||||||
Cashless warrant exercised (in shares) | 738,897 | ||||||
Stock options are subject to vesting percentage | 100.00% | ||||||
Consecutive trading days | trading_day | 40 | 40 | 60 | ||||
Stock price (in dollars per share) | $ / shares | $ 75 | $ 75 | |||||
Stock option modified (in shares) | 495,366 | ||||||
Additional compensation | $ | $ 900 | $ 900 | |||||
Modification and remaining expense was recognized | $ | $ 300 | ||||||
Equity based compensation expense | $ | 5,900 | $ 4,700 | $ 4,900 | ||||
Market capitalization threshold post-IPO (exceeding) | $ | 300,000 | ||||||
Equity based compensation expense, accelerated vesting | $ | $ 2,900 | ||||||
Total unrecognized equity based compensation cost related to unvested stock option and restricted unit awards (in Dollars) | $ | $ 4,800 | ||||||
Weighted average period | 2 years 1 month 9 days | ||||||
SAC LLC | |||||||
Class of Stock [Line Items] | |||||||
Equity based compensation expense | $ | $ 313 | ||||||
2017 Equity Incentive Plan | |||||||
Class of Stock [Line Items] | |||||||
Granted term | 10 years | ||||||
Common stock reserved for issuance (in shares) | 690,000 | ||||||
Non statutory stock options granted (in shares) | 495,366 | ||||||
Stock option price exercise (in dollars per share) | $ / shares | $ 38.10 | ||||||
2017 Equity Incentive Plan | Minimum | |||||||
Class of Stock [Line Items] | |||||||
Number of shares of common stock reserved for issuance (in shares) | 1,414,889 | ||||||
2017 Equity Incentive Plan | Maximum | |||||||
Class of Stock [Line Items] | |||||||
Number of shares of common stock reserved for issuance (in shares) | 2,104,889 | ||||||
Warrants | |||||||
Class of Stock [Line Items] | |||||||
Issuance of common shares (in shares) | 439,447 | 27,246 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Schedule of warrant activity - $ / shares | 12 Months Ended | ||
Jan. 30, 2022 | Jan. 31, 2021 | Feb. 02, 2020 | |
Number of options | |||
Number of warrants, outstanding, beginning balance (in shares) | 293,973 | ||
Number of warrants, warrants outstanding, ending balance (in shares) | 293,973 | ||
Weighted average remaining contractual life (in years), exercised | 1 month 2 days | ||
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 | 16 |
Average exercise price, expired and canceled (in dollars per share) | 9.83 | 0 | 0 |
Average exercise price, exercised (in dollars per share) | 16 | 16 | 16 |
Average exercise price, warrants outstanding, ending balance (in dollars per share) | $ 19.20 | $ 19.07 | $ 16.83 |
Number of options | |||
Number of warrants, outstanding, beginning balance (in shares) | 1,039,120 | 1,067,475 | |
Number of warrants, warrants issued (in shares) | 0 | 0 | 18,166 |
Number of warrants, expired and canceled (in shares) | (98) | 0 | 0 |
Number of warrants, exercised (in shares) | (12,125) | (745,147) | (46,521) |
Number of warrants, warrants outstanding, ending balance (in shares) | 281,750 | 1,039,120 | |
Weighted average remaining contractual life (in years). warrants outstanding, beginning balance | 2 years 6 months 25 days | 1 year 11 months 4 days | 2 years 11 months 4 days |
Weighted average remaining contractual life (in years), warrants issued | 2 years 4 months 24 days | ||
Weighted average remaining contractual life (in years), exercised | 4 months 28 days | 2 years 1 month 24 days | |
Weighted average remaining contractual life (in years). warrants outstanding, ending balance | 1 year 4 months 28 days | 2 years 6 months 25 days | 1 year 11 months 4 days |
Stockholders' Equity (Details_2
Stockholders' Equity (Details) - Schedule of stock option activity - $ / shares | 12 Months Ended | |||
Jan. 30, 2022 | Jan. 31, 2021 | Feb. 02, 2020 | Feb. 03, 2019 | |
Number of options | ||||
Number of options, outstanding, beginning balance (in shares) | 495,366 | 495,366 | 0 | |
Number of options, granted (in shares) | 0 | 0 | 495,366 | |
Number of options, canceled and forfeited (in shares) | 0 | 0 | 0 | |
Number of options, outstanding, ending balance (in shares) | 495,366 | 495,366 | 495,366 | 0 |
Number of options, exercisable at the end of the period (in shares) | 0 | |||
Weighted average exercise price | ||||
Weighted average exercise price, outstanding balance (in dollars per share) | $ 38.10 | $ 38.10 | $ 0 | |
Weighted average exercise price, granted (in dollars per share) | 0 | 0 | 38.10 | |
Weighted average exercise price, canceled and forfeited (in dollars per share) | 0 | 0 | 0 | |
Weighted average exercise price, outstanding balance (in dollars per share) | 38.10 | $ 38.10 | $ 38.10 | $ 0 |
Weighted average exercise price, exercisable at the end of the period (in dollars per share) | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Weighted average remaining contractual life, outstanding (in years) | 2 years 4 months 6 days | 3 years 4 months 6 days | 2 years 4 months 2 days | 0 years |
Average intrinsic value, outstanding, beginning balance (in dollars per share) | $ 0 | $ 0 | $ 0 | |
Average intrinsic value, outstanding, ending balance (in dollars per share) | 28.68 | $ 0 | $ 0 | $ 0 |
Average intrinsic value, exercisable at the end of the period (in dollars per share) | $ 0 |
Stockholders' Equity (Details_3
Stockholders' Equity (Details) - Schedule of unvested restricted stock - $ / shares | 12 Months Ended | ||
Jan. 30, 2022 | Jan. 31, 2021 | Feb. 02, 2020 | |
Number of shares | |||
Number of shares, unvested, beginning balance (in shares) | 655,558 | ||
Number of shares, unvested, ending balance (in shares) | 655,558 | ||
Restricted stock units | |||
Number of shares | |||
Number of shares, unvested, beginning balance (in shares) | 183,053 | 377,286 | |
Number of shares, granted (in shares) | 94,985 | 627,940 | 130,898 |
Number of shares, forfeited (in shares) | (42,516) | (5,701) | (20,470) |
Number of shares, vested (in shares) | (174,694) | (149,734) | (304,661) |
Number of shares, unvested, ending balance (in shares) | 533,333 | 183,053 | |
Weighted average grant date fair value | |||
Weighted average grant date fair value, unvested, beginning balance (in dollars per share) | $ 18.86 | $ 21.34 | $ 11.16 |
Weighted average grant date fair value, granted (in dollars per share) | 78.53 | 16.94 | 23.63 |
Weighted average grant date fair value, forfeited (in dollars per share) | 22.67 | 11.86 | 16.21 |
Weighted average grant date fair value, vested (in dollars per share) | 19.57 | 16.24 | 12.75 |
Weighted average grant date fair value, unvested, ending balance (in dollars per share) | $ 28.41 | $ 18.86 | $ 21.34 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2022 | Jan. 31, 2021 | Feb. 02, 2020 | |
Retirement Benefits [Abstract] | |||
Contributions plan, percentage | 100.00% | ||
Defined contribution plan, cost | $ 0.8 | $ 0.5 | $ 0.4 |
Financing Arrangements (Details
Financing Arrangements (Details) - USD ($) $ in Millions | Mar. 25, 2022 | Feb. 06, 2018 | Jan. 30, 2022 | Jan. 31, 2021 |
Financing Arrangements (Details) [Line Items] | ||||
Borrowings amount | $ 25 | |||
Eligible credit card receivables, percentage | 90.00% | |||
Eligible wholesale receivables percentage | 85.00% | |||
Net recovery percentage of inventory | 85.00% | |||
Increased net recovery percentage | 90.00% | |||
Borrowing availability under the line of credit | $ 22.5 | $ 15.9 | ||
Subsequent Event | ||||
Financing Arrangements (Details) [Line Items] | ||||
Borrowings amount | $ 40 | |||
Line of credit, undrawn availability percentage | 10.00% | |||
Minimum | ||||
Financing Arrangements (Details) [Line Items] | ||||
Tiers range, percentage | 2.00% | |||
Minimum | Subsequent Event | Base Rate | ||||
Financing Arrangements (Details) [Line Items] | ||||
Variable rate | 0.50% | |||
Minimum | Subsequent Event | Secured Overnight Financing Rate (SOFR) | ||||
Financing Arrangements (Details) [Line Items] | ||||
Variable rate | 1.625% | |||
Maximum | ||||
Financing Arrangements (Details) [Line Items] | ||||
Tiers range, percentage | 2.25% | |||
Maximum | Subsequent Event | Base Rate | ||||
Financing Arrangements (Details) [Line Items] | ||||
Variable rate | 0.75% | |||
Maximum | Subsequent Event | Secured Overnight Financing Rate (SOFR) | ||||
Financing Arrangements (Details) [Line Items] | ||||
Variable rate | 1.85% |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended |
Jan. 30, 2022segment | |
Segment Reporting [Abstract] | |
Operating segments, percentage of net sales | 95.00% |
Number of reporting segments | 1 |
Segment Information (Details) -
Segment Information (Details) - Schedule of operating segments - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2022 | Jan. 31, 2021 | Feb. 02, 2020 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 498,239 | $ 320,738 | $ 233,377 |
Sactionals | |||
Segment Reporting Information [Line Items] | |||
Net sales | 436,588 | 271,018 | 188,436 |
Sacs | |||
Segment Reporting Information [Line Items] | |||
Net sales | 52,478 | 44,975 | 39,641 |
Other | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 9,173 | $ 4,745 | $ 5,300 |
Barter Arrangements (Details)
Barter Arrangements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2022 | Jan. 31, 2021 | Feb. 02, 2020 | |
Barter Arrangements [Abstract] | |||
Inventory exchanged for media credits | $ 1.5 | $ 3.2 | $ 1.1 |
Unused media credits | $ 3.4 | $ 2.5 |