Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Mar. 31, 2023 | Jul. 29, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 28, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --01-29 | ||
Entity Central Index Key | 0001834585 | ||
Entity File Number | 001-40204 | ||
Entity Registrant Name | JOANN Inc. | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-1095540 | ||
Entity Address, Address Line One | 5555 Darrow Road | ||
Entity Address, City or Town | Hudson | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 44236 | ||
City Area Code | 330 | ||
Local Phone Number | 656-2600 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Trading Symbol | JOAN | ||
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 | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | true | ||
Entity Public Float | $ 111.9 | ||
Entity Common Stock, Shares Outstanding | 41,127,476 | ||
Documents Incorporated By Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Company’s Proxy Statement for the Company's 2023 Annual Meeting of Shareholders (the “fiscal 2023 Proxy Statement”) are incorporated by reference into Part III. | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Cleveland, Ohio | ||
Auditor Firm ID | 42 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 20.2 | $ 22.5 |
Inventories | 584.1 | 658.6 |
Prepaid expenses and other current assets | 38.6 | 39.2 |
Total current assets | 642.9 | 720.3 |
Property, equipment and leasehold improvements, net | 287.8 | 256.8 |
Operating lease assets | 778.4 | 818 |
Goodwill, net | 162 | 162 |
Intangible assets, net | 272.1 | 370.3 |
Other assets | 37.6 | 34.8 |
Total assets | 2,180.8 | 2,362.2 |
Current liabilities: | ||
Accounts payable | 197.5 | 253.8 |
Accrued expenses | 119.2 | 142.4 |
Current portion of operating lease liabilities | 177.5 | 173.8 |
Current portion of long-term debt | 6.8 | 6.8 |
Total current liabilities | 501 | 576.8 |
Long-term debt, net | 976 | 778.6 |
Long-term operating lease liabilities | 707.3 | 733 |
Long-term deferred income taxes | 16.9 | 87.7 |
Other long-term liabilities | 28.7 | 36.3 |
Shareholders' equity: | ||
Common stock, par value $0.01 per share; 200.0 authorized; issued 44.1 million shares at January 28, 2023and January 29, 2022 | 0.4 | 0.4 |
Additional paid-in capital | 208 | 203.3 |
Retained deficit | (239.2) | (24.9) |
Accumulated other comprehensive income (loss) | 8.3 | 1.8 |
Treasury stock at cost; 3.0 million shares at January 28, 2023and 3.5 million shares at January 29, 2022 | (26.6) | (30.8) |
Total shareholders' equity | (49.1) | 149.8 |
Total liabilities and shareholders' equity | $ 2,180.8 | $ 2,362.2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 28, 2023 | Jan. 29, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200 | 200 |
Common stock, shares issued | 44.1 | 44.1 |
Treasury stock, shares | 3,000,000 | 3,500,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 2,216.9 | $ 2,417.6 | $ 2,762.3 |
Cost of sales | 1,176.6 | 1,204.9 | 1,396.1 |
Selling, general and administrative expenses | 1,073.5 | 1,032.9 | 1,132 |
Depreciation and amortization | 80.4 | 80.1 | 80 |
Goodwill and trade name impairment | 95 | 0 | 0 |
Operating profit (loss) | (208.6) | 99.7 | 154.2 |
Interest expense, net | 64 | 51.2 | 69 |
Debt related loss (gain) | 0 | 3.3 | (155.1) |
Investment remeasurement | (1) | 0 | 0 |
(Gain) on sale leaseback | 0 | (24.5) | 0 |
Income (loss) before income taxes | (271.6) | 69.7 | 240.3 |
Income tax provision (benefit) | (73.2) | 13 | 28 |
Loss from equity method investments | 2.2 | 0 | 0 |
Net income (loss) | (200.6) | 56.7 | 212.3 |
Other comprehensive income (loss): | |||
Unrealized gain on cash flow hedges | 8.7 | 2.8 | 0.7 |
Income tax (provision) benefit on cash flow hedges | (2.2) | (0.7) | (0.2) |
Foreign currency translation | 0 | 0 | 0.1 |
Other comprehensive income (loss) | 6.5 | 2.1 | 0.6 |
Comprehensive income (loss) | $ (194.1) | $ 58.8 | $ 212.9 |
Earnings (loss) per common share: | |||
Basic | $ (4.93) | $ 1.39 | $ 6.08 |
Diluted | $ (4.93) | $ 1.35 | $ 5.93 |
Weighted-average common shares outstanding: | |||
Basic | 40.7 | 40.8 | 34.9 |
Diluted | 40.7 | 42.1 | 35.8 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Net cash provided by (used for) operating activities: | |||
Net income (loss) | $ (200.6) | $ 56.7 | $ 212.3 |
Adjustments to reconcile net income (loss) to net cash provided (used for) by operating activities: | |||
Non-cash operating lease expense | 171.5 | 162.6 | 152.4 |
Depreciation and amortization | 80.4 | 80.1 | 80 |
Deferred income taxes | (73) | (0.4) | (3.9) |
Stock-based compensation expense | 7.3 | 2.5 | 1.5 |
Amortization of deferred financing costs and original issue discount | 2 | 2.5 | 3.7 |
Debt related loss (gain) | 0 | 3.3 | (155.1) |
Investment remeasurements | (1) | ||
(Gain) on sale leaseback | 0 | (24.5) | 0 |
Loss on disposal and impairment of fixed assets | 1.7 | 0.9 | 3.4 |
Trade name impairment | 95 | ||
Loss from equity method investments | 2.2 | 0 | |
Changes in operating assets and liabilities: | |||
(Increase) decrease in inventories | 74.5 | 102.7 | 93.8 |
Decrease (increase) in prepaid expenses and other current assets | 4.5 | 32.3 | (22.5) |
Increase in accounts payable | (56.3) | 3.7 | 23 |
(Decrease) increase in accrued expenses | (12.7) | (29.5) | 62 |
Decrease in operating lease liabilities | (153.9) | (190.4) | (130.8) |
(Decrease) increase in other long-term liabilities | (15.7) | (18.3) | 9.4 |
Other, net | (1.1) | (2.4) | (2.1) |
Net cash provided by (used for) operating activities | (75.2) | (23.6) | 327.1 |
Net cash used for investing activities: | |||
Capital expenditures | (96.9) | (59.1) | (36) |
Proceeds From Sale Leaseback | 0 | 48.1 | 0 |
Other investing activities | (4.3) | (2.2) | 0.3 |
Net cash used for investing activities | (101.2) | (13.2) | (35.7) |
Net cash (used for) provided by financing activities: | |||
Term loan proceeds, net of original issue discount | 0 | 671.6 | 0 |
Term loan payments | (6.8) | (708) | (2.3) |
Borrowings on revolving credit facility | 663.2 | 568.4 | 584.7 |
Repayments on revolving credit facility | (460.2) | (532.9) | (672.7) |
Purchase and retirement of debt | 0 | (0.9) | (190.5) |
Principal payments on finance lease obligations | (10.3) | (7.7) | (3.4) |
Issuance of common stock, net of underwriting commissions and offering costs | 0 | 76.9 | 0 |
Purchase of common stock | 0 | (20) | 0 |
Proceeds from employee stock purchase plan and exercise of stock options | 1.7 | 1.8 | 0 |
Payments of taxes related to the net issuance of team member stock awards | (0.1) | 0 | 0 |
Dividends paid | (13.4) | (12.6) | 0 |
Financing fees paid | 0 | (4.9) | (4.2) |
Other financing activities | 0 | 0.2 | 0 |
Net cash (used for) provided by financing activities | 174.1 | 31.9 | (288.4) |
Net increase (decrease) in cash and cash equivalents | (2.3) | (4.9) | 3 |
Cash and cash equivalents at beginning of period | 22.5 | 27.4 | 24.4 |
Cash and cash equivalents at end of period | 20.2 | 22.5 | 27.4 |
Cash paid during the period for: | |||
Interest | 60.9 | 49.6 | 62.1 |
Income taxes, net of refunds | $ (8.8) | $ 4.2 | $ 55.2 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Deficit) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings (Deficit) | Accumulated Other Comprehensive Loss |
Balance at Feb. 01, 2020 | $ (172) | $ 0.3 | $ 123.2 | $ (13.3) | $ (281.3) | $ (0.9) |
Balance,Shares at Feb. 01, 2020 | 34.9 | 1.9 | ||||
Net income (loss) | 212.3 | 212.3 | ||||
Other comprehensive income | 0.6 | 0.6 | ||||
Stock-based compensation | $ 1.5 | 1.5 | ||||
Exercise of stock options, Shares | 0 | |||||
Balance at Jan. 30, 2021 | $ 42.4 | $ 0.3 | 124.7 | $ (13.3) | (69) | (0.3) |
Balance,Shares at Jan. 30, 2021 | 34.9 | 1.9 | ||||
Net income (loss) | 56.7 | 56.7 | ||||
Other comprehensive income | 2.1 | 2.1 | ||||
Issuance of common stock, Shares | 7.1 | |||||
Issuance of common stock | 76.9 | $ 0.1 | 76.8 | |||
Dividends | (12.6) | (12.6) | ||||
Stock-based compensation | 2.5 | 2.5 | ||||
Purchase of common stock, shares | (1.9) | 1.9 | ||||
Purchase of common stock | (20) | $ (20) | ||||
Exercise of stock options | 1.8 | (0.7) | $ 2.5 | |||
Exercise of stock options, Shares | 0.5 | (0.3) | ||||
Balance at Jan. 29, 2022 | 149.8 | $ 0.4 | 203.3 | $ (30.8) | (24.9) | 1.8 |
Balance,Shares at Jan. 29, 2022 | 40.6 | 3.5 | ||||
Net income (loss) | (200.6) | (200.6) | ||||
Other comprehensive income | 6.5 | 6.5 | ||||
Dividends | (13.7) | $ (0.3) | (13.7) | |||
Stock-based compensation | 7.3 | 7.3 | ||||
Exercise of stock options | $ 0.4 | 0.1 | ||||
Exercise of stock options, Shares | 36,740 | |||||
Vesting of restricted stock units, Shares | 0.1 | 0.1 | ||||
Vesting of restricted stock units | $ (0.1) | (0.9) | $ 0.8 | |||
Employee stock purchase plan purchases,amount | 1.3 | (1.8) | $ 3.1 | |||
Employee stock purchase plan purchases, shares | 0.4 | 0.4 | ||||
Balance at Jan. 28, 2023 | $ (49.1) | $ 0.4 | $ 208 | $ (26.6) | $ (239.2) | $ 8.3 |
Balance,Shares at Jan. 28, 2023 | 41.1 | 3 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Deficit) (Parenthetical) - $ / shares | 12 Months Ended | |
Jan. 28, 2023 | Jan. 29, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends per share | $ 0.33 | $ 0.30 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jan. 28, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1—Significant A ccounting Policies Nature of Operations JOANN was founded in 1943 as a single retail store location. Today, JOANN is the nation’s leading fabric and craft specialty retailer. The Company's store locations and website feature a variety of competitively priced merchandise used in sewing, crafting and home decorating projects, including fabric, notions, crafts, frames, paper crafting supplies, artificial floral, finished seasonal and home décor items. As of January 28, 2023, the Company operated 833 store locations in 49 states. The significant accounting policies applied in preparing the accompanying Consolidated Financial Statements of the Company are summarized below. Basis of Presentation The Consolidated Financial Statements include the accounts of the Holding Company, Needle Holdings and JOANN. All of the entities referenced in the prior sentence hereinafter will be referred to collectively as the “Company” and are all controlled by affiliates of LGP. All intercompany accounts and transactions have been eliminated upon consolidation. The Holding Company has no operating activities and is limited to the issuance of shares of common stock and stock-based awards, the repurchase of common shares, the issuance and repurchase of debt, the receipt and payment of dividends or distributions and the payment of interest expense. The authorized, issued and outstanding common shares and treasury shares shown on the Consolidated Balance Sheets are of the Holding Company. Likewise, Needle Holdings has no operating activities and is limited to the issuance of initial shares of common stock and stock-based awards and the payment of dividends or distributions. Initial Public Offering On March 11, 2021, the Company’s registration statement on Form S-1 (File No. 333-253121) relating to its initial public offering was declared effective by the SEC. The Company’s shares of common stock began trading on the Nasdaq Global Market on March 12, 2021. The public offering price of the shares sold in the initial public offering was $ 12.00 per share. The initial public offering closed on March 11, 2021 and included 5,468,750 shares of common stock. As part of the Company’s initial public offering, the underwriters were provided with an option to purchase 1,640,625 additional shares at the initial public offering price. This option was exercised on April 13, 2021. In aggregate, the shares issued in the offering, including the exercise of the underwriters’ option, generated $ 76.9 million in net proceeds, which is net of $ 5.7 million in underwriters’ discount and commissions and $ 2.7 million in offering costs incurred. On March 19, 2021, in connection with the closing of the initial public offering, the Company used all net proceeds received from the initial public offering and borrowings from the ABL Facility (as defined below) to repay all of the outstanding borrowings and accrued interest under the Term Loan due 2024 (as defined below) totaling $ 72.7 million. Following such repayment, all obligations under the Term Loan due 2024 were terminated. Stock Split On March 3, 2021, the Company’s board of directors approved and effected an 85.8808880756715 -for-1.0 unit split of its common stock. All share and per share data included in these Consolidated Financial Statements give effect to the stock split and have been retroactively adjusted for all periods . Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Since actual results may differ from those estimates, the Company revises its estimates and assumptions as new information becomes available. Fiscal Year The Company’s fiscal year ends on the Saturday closest to January 31 and refers to the year in which the period ends (e.g., fiscal 2023 refers to the year ended January 28, 2023 ). Fiscal years consist of 52 weeks unless noted otherwise. Recently Adopted Accounting Guidance In December 2022, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2022-06—Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. ASU 2022-06 defers the sunset date of Topic 848 (ASU 2020-04) from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. Topic 848 was issued to provide entities certain optional expedients and exceptions when accounting for contracts and certain hedging relationships and other transactions affected by changes in the interest rates used for discounting cash flows, for computing variation margin settlements and for calculating price alignment interest in connection with reference rate reforms. These amendments were effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2024. The Company intends to apply this guidance when modifications of contracts that include LIBOR occur, which is not expected to have a material impact on its Consolidated Financial Statements. Cash and Cash Equivalents Cash equivalents are all highly liquid investments with original maturities of three months or less. Inventories Inventories are stated at the lower of cost or net realizable value with cost determined on a weighted-average basis. Inventory valuation methods require certain management estimates and judgments, which affect the ending inventory valuation at cost, as well as the cost of sales reported for the year. These valuation methods include estimates of net realizable value on product designated for clearance and estimates of shrink between periods when the Company conducts distribution center inventory cycle counts and store location physical inventories to substantiate inventory balances. The Company’s accrual for shrink is based on the actual historical shrink results of recent distribution center inventory cycle counts and store location physical inventories. These estimates are compared to actual results as physical inventory counts are taken and reconciled to the general ledger. The majority of the Company’s store location physical inventory counts are taken in the first three quarters of each year and the shrink accrual recorded at January 28, 2023 is based on shrink results of these prior physical inventory counts. Store locations that have been open one year or longer are physically inventoried at least once over an 18-month cycle, with store locations exhibiting a higher rate of shrink to sales inventoried at least once per year. The Company continually monitors and adjusts the shrink rate estimates based on the results of store location physical inventory counts and shrink trends. Inventory reserves for clearance product are estimated based on a number of factors, including, but not limited to, quantities of slow moving or carryover seasonal merchandise on hand, historical recovery statistics and future merchandising plans. The accuracy of the Company’s estimates can be affected by many factors, some of which are outside of the Company’s control, including changes in economic conditions and consumer buying trends. Consignment inventory is not reflected in the Company’s Consolidated Financial Statements. Consignment inventory consists of patterns, magazines, books, calendars, DVDs, ribbons and seeds. Consignment inventory can be returned to the vendor at any time. At the time consigned inventory is sold, the Company records the purchase liability in accounts payable and the related cost of merchandise in cost of sales. Property, Equipment and Leasehold Improvements Property, equipment and leasehold improvements are stated at cost less accumulated depreciation and impairment. Depreciation is recorded over the estimated useful life of the assets principally by the straight-line method. The major classes of assets and ranges of estimated useful lives are: buildings and building/land improvements from 10 to 40 years; furniture and fixtures from five to 10 years; purchased software and computer equipment from three to five years; leasehold improvements for the lesser of 10 years or over the remaining term of the lease; and finance lease assets for the term of the underlying lease. Maintenance and repair expenditures are charged to expense as incurred and improvements and major renewals are capitalized. Software Development The Company capitalized $ 6.8 million in fiscal 2023 , $ 4.7 million in fiscal 2022 and $ 4.1 million in fiscal 2021 for internal use software acquired from third parties. The capitalized amounts are included in property, equipment and leasehold improvements, net. The Company amortizes internal use software on a straight-line basis over periods ranging from three to five years beginning at the time the software becomes operational. Amortization expense was $ 6.4 million in fiscal 2023 , $ 6.5 million in fiscal 2022 and $ 7.3 million in fiscal 2021. The unamortized balance for internal use software was $ 17.0 million as of January 28, 2023 and $ 16.6 million as of January 29, 2022 . Goodwill and Other Intangible Assets The Company assesses impairment of goodwill at the reporting unit level. A reporting unit is the operating segment, or a business unit one level below that operating segment, for which discrete financial information is prepared and regularly reviewed by segment management. As discussed in Note 12 – Segments and Disaggregated Revenue to our Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K, the Company has one operating segment and one reportable segment. Annually, as of the first day of the fourth quarter, and more frequently if circumstances indicate impairment may exist, the Company assesses qualitative factors to determine if it is more-likely-than-not that the fair value of its single reporting unit is below its carrying value. If it is determined that this is more-likely-than-not, a quantitative assessment is performed. The quantitative assessment compares the fair value of a reporting unit to its current carrying value. The Company determines the estimated fair value of the reporting unit based on valuation techniques including discounted cash flows as well as a market comparable method. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that reporting unit, goodwill is not considered impaired. Annually, as of the first day of the fourth quarter, and more frequently if circumstances indicate impairment may exist, the Company assesses qualitative factors to determine if it is more-likely-than-not that the fair values of the indefinite-lived intangible assets not subject to amortization (JOANN trade name and joann.com Domain Name) are below their respective carrying values. If it is determined that this is more-likely-than-not, a quantitative assessment is performed. The quantitative assessment compares the fair value of an intangible assets to its respective current carrying value. The Company determines the estimated fair value of an intangible asset based upon the relief from royalty method. See Notes to Consolidated Financial Statements, Note 8—Goodwill and Other Intangible Assets for further details. Impairment of Long-Lived and Operating Lease Assets The Company evaluates long-lived and operating lease assets for impairment whenever events or changes in circumstances indicate that the carrying amount of those assets may not be recoverable. Factors considered that could trigger an impairment review include, but are not limited to, significant underperformance relative to historical or projected future operating results and significant changes in the manner of use of the assets or the Company’s overall business strategies. Potential impairment exists if the estimated undiscounted cash flow expected to result from the use of the asset is less than the carrying value of the asset. The amount of the impairment loss represents the excess of the carrying value of the asset over its fair value. Management estimates fair value based on a projected discounted cash flow method using a discount rate that is considered to be commensurate with the risk inherent in the Company’s current business model. Additional factors are taken into consideration, such as local market conditions, operating environment and other trends. Based on management’s ongoing review of the performance of its store locations, utilization of assets and other facilities, no material impairment losses were recognized in fiscal 2023, fiscal 2022 or fiscal 2021 . Store Location Pre-Opening and Closing Costs Store location pre-opening costs are expensed as incurred and included in SG&A expenses on the accompanying Consolidated Statements of Comprehensive Income (Loss). These costs are incurred prior to a new store location or remodeled store location opening and include the hiring and training costs for new team members, processing costs of initial merchandise and rental expense for the period prior to the store location opening for business. The Company recognizes costs associated with exit or disposal activities at the time the obligation is incurred. In addition, any liabilities that arise from exit or disposal activities are initially measured and recorded at fair value. Store location pre-opening and closing costs were as follows: Fiscal Year Ended January 28, January 29, January 30, (In millions) Store location pre-opening costs $ 16.2 $ 5.1 $ 4.1 Store location closing costs 5.3 1.1 1.5 Total $ 21.5 $ 6.2 $ 5.6 Accrued Expenses The Company estimates certain material expenses in an effort to record those expenses in the period incurred. The Company’s most material estimates relate to compensation, taxes and insurance-related expenses, significant portions of which are self-insured. The Company is self-insured for certain losses relating to general liability, workers’ compensation and team member medical benefit claims. The ultimate cost of the Company’s workers’ compensation and general liability insurance accruals are recorded based on actuarial valuations and historical claims experience. The Company’s team member medical insurance accruals are recorded based on its medical claims processed as well as historical medical claims experience for claims incurred but not yet reported. The Company maintains stop-loss coverage to limit the exposure to certain insurance-related risks. Management believes that the various assumptions developed and actuarial methods used to determine its self-insurance reserves are reasonable. Differences in estimates and assumptions could result in an accrual requirement materially different from the calculated accrual. Historically, such differences have not been significant. See Notes to Consolidated Financial Statements, Note 6—Accrued Expenses and Other Long-Term Liabilities for discussion regarding the Company’s accrued expenses. Financial Instruments A financial instrument is cash or a contract that imposes an obligation to deliver or conveys a right to receive cash or another financial instrument. The carrying values of the Company’s cash and cash equivalents, accounts payable and borrowings on the Company’s ABL Facility are considered to be representative of fair value due to the short maturity of these instruments. See Notes to Consolidated Financial Statements, Note 4—Fair Value Measurement for discussion regarding the fair value of the Company’s derivative instruments and term loan debt instruments. Income Taxes The Company does business in various jurisdictions that impose income taxes. The aggregate amount of income tax expense to accrue and the amount currently payable are based upon the tax statutes of each jurisdiction, pursuant to the asset and liability method. This process involves adjusting book income for items that are treated differently by the applicable taxing authorities. Deferred tax assets and liabilities are reflected on the balance sheet for temporary differences that will reverse in subsequent years. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are estimated to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the tax rate is recognized in income or expense in the period during which the change is enacted. The Company considers indefinite-lived intangibles as a potential future source of taxable income when considering the realizability of indefinite-lived deferred tax assets. The current tax provision can be affected by the mix of income and identification or resolution of uncertain tax positions. Because income from different state jurisdictions may be taxed at different rates, the shift in mix between states during a year or over years can cause the effective tax rate to change. The rate is based on the best estimate of an annual effective rate, and those estimates are updated quarterly. The Company also regularly evaluates the status and likely outcomes of uncertain tax positions. Uncertain tax positions are provided for potential exposures when it is considered more-likely-than-not that a taxing authority may take a sustainable position on a matter contrary to the Company’s position. The Company evaluates these uncertain tax positions, including interest thereon, on a quarterly basis to ensure that they have been appropriately adjusted for events, including audit settlements, that may impact the ultimate payment for such exposure. As a matter of course, the Company is regularly audited by federal, state and local tax authorities. For federal purposes, effective fiscal 2015, the Company is part of the Compliance Assurance Process (“CAP”) program, pursuant to which it works collaboratively with the IRS in order to address issues prior to its filing of the return. CAP allows for the IRS to achieve an acceptable level of assurance regarding the accuracy of filed tax returns while substantially shortening the length of post-filing examinations. Share Repurchase Program and Treasury Stock Treasury stock consists of the Company’s common stock that has been issued, but subsequently reacquired. The Company accounts for treasury stock on the trade date under the cost method. Treasury stock is recorded as a reduction to shareholders’ equity, as the Company does not currently intend to retire the treasury stock held. When shares are reissued, the Company uses an average cost method to determine cost. Revenue Recognition Revenue is primarily associated with sales of merchandise to customers within the Company’s store locations and customers utilizing its e-commerce channels. Retail sales, net of estimated returns and point-of-sale coupons and discounts, are recorded at the point-of-sale when customers take control of the merchandise in store locations. E-commerce sales include shipping revenue and are recorded upon delivery to the customer. Shipping and handling fees charged to customers are recorded as sales with related costs recorded as cost of sales. Sales taxes are not included in sales, as the Company acts as a conduit for collecting and remitting sales taxes to the appropriate governmental authorities. Payment is typically due at the point-of-sale, thus the Company does not have material customer receivables. The Company allows for merchandise to be returned under most circumstances. The current policy allows for customers to receive an even exchange or full refund based upon the original method of payment when the returned purchase is accompanied with a receipt. Historic customer return activity is used to estimate the returns reserve, which historically has not been material to the Company’s Consolidated Financial Statements. The Company presents the gross sales returns reserve in accounts payable and the estimated value of the merchandise expected to be returned in prepaid expenses and other current assets within the accompanying Consolidated Balance Sheets. Proceeds from the sale of JOANN gift cards are recorded as a liability and recognized as net sales when redeemed by the holder. Gift card breakage represents the remaining balance of the Company’s liability for gift cards for which the likelihood of redemption by the customer is remote. Gift card breakage is recognized as net sales in proportion to the pattern of rights exercised by the customer and is determined based on historical redemption patterns. The Company generally is not required by law to escheat the value of unredeemed gift cards to the states in which it operates. Activity related to the Company’s gift card liabilities was as follows: Fiscal Year Ended January 28, January 29, January 30, (In millions) Balance at beginning of period $ 41.4 $ 37.9 $ 32.4 Issuance of gift cards 37.5 43.6 45.9 Revenue recognized (1) ( 35.4 ) ( 38.9 ) ( 39.2 ) Gift card breakage ( 1.8 ) ( 1.2 ) ( 1.2 ) Balance at end of period $ 41.7 $ 41.4 $ 37.9 (1) Revenue recognized from the beginning liability during fiscal 2023, fiscal 2022 and fiscal 2021 totaled $ 11.5 million , $ 9.3 million and $ 8.3 million , respectively. Cost of Sales Inbound freight and duties, including tariffs, related to import purchases and internal transfer costs are considered to be direct costs of the Company’s merchandise and, accordingly, are recognized when the related merchandise is sold as cost of sales. Cost of sales does not include depreciation and amortization. Purchasing and receiving costs, warehousing costs and other costs of the Company’s distribution network are considered to be period costs not directly attributable to the value of merchandise and, accordingly, are expensed as incurred as SG&A expenses. The Company receives vendor support, including cash discounts, volume discounts, allowances and markdown support. The Company has agreements in place with each vendor setting forth the specific conditions for each allowance or payment. Depending on the arrangement, the Company either recognizes the allowance as a reduction of current costs or defers the payment over the period the related merchandise is sold through cost of sales. Operating Leases The Company records right-of-use lease assets and lease liabilities on its Consolidated Balance Sheets. Lease liabilities are recorded at a discount based upon the Company’s estimated incremental borrowing rate. Factors incorporated into the calculation of lease discount rates include the valuations and yields of the Company’s term loan facilities, their credit spread over comparable U.S. Treasury rates and an index of the credit spreads for U.S. Retail Company debt yields. The Company records lease cost on a straight-line basis over the base, non-cancelable lease term commencing on the date that the Company takes physical possession of the property from the landlord, which may include a period prior to the opening of a store location or other facility to make any necessary leasehold improvements and install fixtures. Any tenant allowances received are recorded as a reduction of lease payments when calculating the lease liability and the associated asset. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets and lease expense for such leases is recognized on a straight-line basis over the lease term. The Company combines lease and non-lease components. Many leases include one or more options to renew, and the exercise of lease renewal options is at the Company’s sole discretion. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Related Party Transactions During fiscal 2023 and fiscal 2022, the Company paid dividends of $ 9.2 million and $ 8.3 million, respectively, to LGP as part of the Company's dividend payments. Advertising Costs The Company expenses production costs of advertising the first time the advertising takes place. Advertising expense, net of co-operative advertising agreements, was $ 55.8 million for fiscal 2023, $ 59.4 million for fiscal 2022 and $ 60.6 million for fiscal 2021. Included in prepaid expenses and other current assets was $ 1.9 million and $ 1.6 million at the end of fiscal 2023 and fiscal 2022 , respectively, relating to prepayments of production costs for advertising. Stock-Based Compensation The fair value of stock-based awards is recognized as compensation expense on a straight-line basis over the requisite service period of the awards within SG&A expenses on the accompanying Consolidated Statements of Comprehensive Income (Loss). The fair value of stock options is determined using the Black-Scholes option pricing model. Determining the fair value of options at the grant date requires judgment, including estimating the expected term that stock options will be outstanding prior to exercise and the associated volatility. Additionally, while not historically, currently or expected to be applicable to the Company, in the event that the Company is issuing share-based awards prior to the release of material nonpublic information, the Company will consider whether observable market prices need to be adjusted in determining the current price input for the awards. Prior to the Company’s initial public offering, the absence of an active market for the Company’s common stock required the Company’s board of directors to determine the fair value of its common stock for purposes of granting stock options. The Company obtained contemporaneous third-party valuations to assist the board of directors in determining the fair value of the Company’s common stock. Following the listing of the Company’s common stock on Nasdaq, it is not necessary to determine the fair value of its common stock, as its shares are traded in the public market. See Notes to Consolidated Financial Statements, Note 10—Stock-Based Compensation for further details. |
Financing
Financing | 12 Months Ended |
Jan. 28, 2023 | |
Debt Disclosure [Abstract] | |
Financing | Note 2—Financing Long-term debt, net consisted of the following: January 28, January 29, (In millions) ABL Facility $ 324.0 $ 121.0 Term Loan due 2028 666.6 673.3 Total debt 990.6 794.3 Less unamortized discount and debt costs ( 7.8 ) ( 8.9 ) Total debt, net 982.8 785.4 Less current portion of debt ( 6.8 ) ( 6.8 ) Long-term debt, net $ 976.0 $ 778.6 ABL Facility On October 21, 2016 , the Company entered into the ABL Facility, which originally provided for senior secured financing of up to $ 400.0 million, subject to a borrowing base, maturing on October 20, 2021 . On November 25, 2020, the Company entered into an agreement to amend various terms of the ABL Facility (as amended, the “First Amended ABL Facility”), which provided for senior secured financing of up to $ 500.0 million, subject to a borrowing base, maturing on November 25, 2025 . On December 22, 2021, the Company entered into an agreement to amend various terms of the First Amended ABL Facility (as amended, the “Second Amended ABL Facility”), which provides for senior secured financing of up to $ 500.0 million, subject to a borrowing base, maturing on December 22, 2026 . No changes were made to the borrowing base formula. The Second Amended ABL Facility is secured by a first priority security interest in JOANN’s inventory, accounts receivable and related assets with a second priority interest in all other assets, excluding real estate. It also continues to be guaranteed by existing and future wholly-owned subsidiaries of JOANN, subject to certain exceptions. Under the Second Amended ABL Facility, the base rate loans bear an additional margin of 0.50 % when average historical excess capacity is less than 40.00 % of the maximum credit and 0.25 % when average historical excess capacity is greater than or equal to 40.00 % of the maximum credit. Eurodollar rate loans bear an additional margin of 1.50 % when average historical excess capacity is less than 40.00 % of the maximum credit and 1.25 % when average historical excess capacity is greater than or equal to 40.00 % of the maximum credit. Unused commitment fees on the Second Amended ABL Facility are calculated based on a rate of 0.20 % per annum. In the event LIBOR ceases to be available during the term of the facility, the facility provides procedures to determine a “LIBOR Successor Rate.” The Company has the option to request an increase in the size of the Second Amended ABL Facility up to $ 150.0 million (for a total facility of $ 650.0 million) in increments of not less than $ 20.0 million, provided that no default exists or would arise from the increase. However, the lenders under the Second Amended ABL Facility are under no obligation to provide any such additional amounts. As of January 28, 2023, there were $ 324.0 million of borrowings on the ABL Facility and the Company’s outstanding letters of credit obligation was $ 16.5 million . As of January 28, 2023, the Company’s excess availability on the facility was $ 87.2 million . During fiscal 2023 , the weighted average interest rate for borrowings under the ABL Facility was 3.82 % compared to 2.75 % for fiscal 2022. As of January 29, 2022, there were $ 121.0 million of borrowings on the ABL Facility and the Company’s outstanding letters of credit obligation was $ 18.1 million . As of January 29, 2022, the Company’s excess availability on the facility was $ 239.6 million . Term Loan due 2023 On October 21, 2016, the Company entered into a $ 725.0 million senior secured term loan facility (the “Term Loan due 2023”) which was issued at 98.0 % of face value. The Term Loan due 2023 was with a syndicate of lenders and was secured by substantially all the assets of JOANN, excluding the ABL Facility collateral, and had a second priority security interest in the ABL Facility collateral. It was guaranteed by existing and future wholly-owned subsidiaries of JOANN, subject to certain exceptions. The Term Loan due 2023 was refinanced on July 7, 2021 pursuant to Amendment No. 2 to the Company’s Credit Agreement (see Term Loan Due 2028 below). A write-off of the deferred charges and original issue discount, totaling $ 3.1 million, associated with the original debt issuance was recognized in debt related loss (gain) within the accompanying Consolidated Statements of Comprehensive Income (Loss) in the second quarter of fiscal 2022 as a result of the refinancing. Term Loan due 2024 On May 21, 2018, the Company entered into a $ 225.0 million term loan facility (the “Term Loan due 2024”), which was issued at 98.5 % of face value. The Term Loan due 2024 was with a syndicate of lenders. The Term Loan due 2024 was secured by a second priority security interest in all the assets of JOANN, excluding the ABL Facility collateral, and had a third priority security interest in the ABL Facility collateral. It was guaranteed by existing and future wholly-owned subsidiaries of JOANN, subject to certain exceptions. On March 19, 2021, in connection with the closing of the initial public offering, the Company used all net proceeds received from the initial public offering and borrowings from the ABL Facility to repay all of the outstanding borrowings and accrued interest under the Term Loan due 2024 totaling $ 72.7 million. Following such repayment, all obligations under the Term Loan due 2024 were terminated in the first quarter of fiscal 2022. A write-off of the deferred charges and original issue discount, totaling $ 0.9 million, associated with the original debt issuance was recognized in debt related loss (gain) within the accompanying Consolidated Statements of Comprehensive Income (Loss) in the first quarter of fiscal 2022 as a result of the repayment. Term Loan Due 2028 On July 7, 2021, the Company entered into the Amendment No. 2 (“Amendment No. 2”) to the Credit Agreement, dated as of October 21, 2016. Amendment No. 2, among other things, provided for a new $ 675 million incremental first-lien term loan credit facility with a maturity date of July 7, 2028 (the “Term Loan due 2028” and, together with the Term Loan due 2023 and Term Loan due 2024, the “Term Loans”). The Term Loan due 2028 was issued at 99.5 % of face value and was used to refinance the Company’s outstanding Term Loan due 2023, as well as reduce amounts borrowed under the ABL Facility and pay related fees and expenses. Amendment No. 2 reduced the applicable interest rates for Eurodollar rate loans and base rate loans from 5.00 % and 4.00 % to 4.75 % and 3.75 %, respectively, and reduced the LIBOR floor from 1.00 % to 0.75 %. Other than the changes described above, all other material provisions of the Credit Agreement remain unchanged. During fiscal 2023, the weighted average interest rate for borrowings under the Term Loan due 2028 wa s 7.16 % compared to 5.58 % during fiscal 2022. The Term Loan due 2028 was issued at a $ 3.4 million discount. A portion of the discount in the amount of $ 3.1 million was recorded as a reduction of debt and set up to amortize over the life of the Term Loan due 2028 and $ 0.3 million of the discount was charged to earnings. The total fees and expenses associated with the Term Loan due 2028 were $ 6.8 million, which fees represent banking, legal and other professional services. The Company capitalized $ 3.8 million of these fees as a reduction of debt and the remaining fees were charged to earnings. Covenants The covenants contained in the credit agreements restrict JOANN’s ability to pay dividends or make other distributions; accordingly, any dividends may only be made in accordance with such covenants. Among other restrictions, the credit agreements permit the public parent company to pay dividends on its common stock in amounts not to exceed the greater of 6 % per annum of the net proceeds received by or contributed to Jo-Ann Stores, LLC from any such public offering of common stock of Jo-Ann Stores, LLC or its direct or indirect parent company, or 7 % of Market Capitalization (as defined in the credit agreements). So long as there is no event of default, the credit agreements also allow dividends in amounts up to $ 100 million, which amount can increase if certain other conditions are satisfied, including if JOANN’s leverage does not exceed certain thresholds. Additionally, the ABL Facility allows for unlimited dividends, so long as there is no event of default and the Company’s excess availability after giving pro forma effect for the thirty-day period immediately preceding such payment shall be greater than (a) the greater of 12.5 % of the maximum credit and $ 40 million and the consolidated fixed charge coverage ratio shall be greater than or equal to 1.0 to 1.0 or (b) 17.5 % of the maximum credit calculated. At January 28, 2023, the Company was in compliance with all covenants under its credit agreements. At January 28, 2023, the Company’s fixed minimum debt principal maturities were as follows: Fiscal Year Revolving Term Loan Total (In millions) 2024 $ — $ 8.4 $ 8.4 2025 — 6.8 6.8 2026 — 6.7 6.7 2027 324.0 5.1 329.1 Thereafter — 639.6 639.6 $ 324.0 $ 666.6 $ 990.6 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Jan. 28, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 3—Derivative Instruments The Company is exposed to certain market risks during the normal course of its business arising from adverse changes in interest rates. The Company’s exposure to interest rate risk results primarily from its variable-rate borrowings. The Company may selectively use derivative financial instruments to manage the risks from fluctuations in interest rates. The Company does not purchase or hold derivatives for trading or speculative purposes. Fluctuations in interest rates can be volatile, and the Company’s risk management activities do not totally eliminate these risks. Consequently, these fluctuations could have a significant effect on the Company’s financial results. Interest Rate Swaps In August 2021, the Company entered into an interest rate swap agreement with U.S. Bank N.A., which has a $ 200 million notional value with an effective date of October 26, 2023 and a maturity date of October 26, 2025 . Beginning in January 2024, the Company receives 1-month, 3-month or 6-month LIBOR, at the Company's election, subject to a 0.75 % floor, and pays a fixed rate of interest of 1.44 % per annum on a quarterly basis. In connection with the execution of the interest rate swap agreement, no cash was exchanged between the Company and the counterparty. The fair value of the interest rate swap as of January 28, 2023 was $ 8.5 million. In May 2022, the Company entered into a second interest rate swap agreement with U.S. Bank N.A., which has a $ 250 million notional value with an effective date of July 26, 2023 and a maturity date of January 26, 2026 . Beginning in October 2023, the Company receives 1-month, 3-month or 6-month LIBOR, at the Company's election, subject to a 0.75 % floor, and pays a fixed rate of interest of 3.37 % per annum on a quarterly basis. In connection with the execution of the interest rate swap agreement, no cash was exchanged between the Company and the counterparty. The fair value of the interest rate swap as of January 28, 2023 was $ 2.6 million . All of the Company's derivative financial instruments are eligible for netting arrangements that allow the Company and its counterparties to net settle amounts owed to each other. Derivative assets and liabilities that can be net settled under these arrangements have been presented in the Company's Consolidated Balance Sheet on a net basis. As of January 28, 2023, none of the netting arrangements involved collateral. The net fair value of the interest rate swaps as of January 28, 2023 was $ 11.1 million. The Company designated its interest rate swaps as cash flow hedges and structured them to be highly effective. Unrealized gains and losses related to the fair value of the interest rate swaps are recorded to accumulated other comprehensive income (loss), net of tax. In the event of early termination of the interest rate swaps, the Company will receive from or pay to the counterparty the fair value of the interest rate swap agreements, and the unrealized gains or losses outstanding will be recognized in earnings. Interest Rate Cap In July 2018, the Company purchased, for $ 2.2 million, a forward starting interest rate cap based on 3-month LIBOR effective October 23, 2018 through October 23, 2021 . The objective of the hedging instrument was to offset the variability of cash flows in term loan debt interest payments attributable to fluctuations in LIBOR beyond 3.5 %. The interest rate cap expired in October 2021. At the time of expiration, the interest rate cap had an amortized notional amount of $ 681.4 million. The time value of the interest rate cap was excluded from the assessment of effectiveness and was amortized to interest expense over the life of the hedge. The impacts of the Company’s derivative instruments on the accompanying Consolidated Statements of Comprehensive Income (Loss) for fiscal 2023, fiscal 2022 and fiscal 2021 are presented in the table below: Fiscal Year Ended January 28, January 29, January 30, (In millions) Interest rate swap - $200M notional amount $ 6.1 $ 2.4 $ — Interest rate swap - $250M notional amount 2.6 — — Interest rate cap - $681M notional amount — 0.4 0.7 Gain recognized in other comprehensive income (loss), gross of income taxes $ 8.7 $ 2.8 $ 0.7 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 28, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 4—Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a fair value hierarchy has been established that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities; Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose significant inputs are observable; and Level 3 – Unobservable inputs in which there is little or no market data which require the reporting entity to develop its own assumptions. The valuations of the Company's interest rate derivatives are measured as the present value of all expected future cash flows based on LIBOR-based yield curves. The present value calculation uses discount rates that have been adjusted to reflect the credit quality of the Company and its counterparty which is a Level 2 fair value measurement. The fair value of the Company’s interest rate derivatives were as follows: Instrument Balance Sheet January 28, January 29, (In millions) Interest rate swap - current Prepaid expenses and other current assets $ 3.7 $ — Interest rate swap - long term Other assets 7.4 2.4 The fair values of cash and cash equivalents, accounts payable and borrowings on the Company’s ABL Facility approximated their carrying values because of the short-term nature of these instruments. If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy. Long-term debt is presented at carrying value in the Company’s Consolidated Balance Sheets. The fair value of the Company’s term loans was determined based on quoted market prices or recent trades of these debt instruments in less active markets. If the Company’s long-term debt was recorded at fair value, it would be classified as Level 2 in the fair value hierarchy. The following provides the carrying and fair values of the Company’s term loans as of January 28, 2023 and January 29, 2022: January 28, 2023 January 29, 2022 Carrying Fair Carrying Fair (In millions) Term Loan due 2028 (1) 658.8 374.7 664.3 656.0 (1) Net of deferred financing costs and original issue discount . Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). The fair values are determined based on either a market approach, an income approach, in which the Company utilizes internal cash flow projections over the life of the underlying assets discounted using a discount rate that is considered to be commensurate with the risk inherent in the Company’s current business model, or a combination of both. These measures of fair value and related inputs are considered a Level 3 approach under the fair value hierarchy. The Company uses the end of the period when determining the timing of transfers between levels. There were no transfers between levels during the periods presented. |
Leases
Leases | 12 Months Ended |
Jan. 28, 2023 | |
Leases [Abstract] | |
Leases | Note 5—Leases With the exception of one store location, all of the Company’s store locations operate out of leased facilities. The Company’s store location leases generally have initial terms of 10 years with renewal options for up to 25 years . The Company leases distribution centers located in Opelika, Alabama and Visalia, California and an omni-channel fulfillment center located in West Jefferson, Ohio. The initial term of the Opelika, Alabama lease expires in June 2041 , and the Company has renewal options for up to an additional 20 years . The Visalia distribution center consists of two facilities with separate leases. The initial term of the first lease expires in October 2026 , and the Company has renewal options for up to an additional 40 years . The second lease expires in May 2024 and has no renewal options. The initial term of the West Jefferson, Ohio lease expires in June 2028 , and the Company has renewal options for up to an additional 18 years . The Company also leases certain computer and store location equipment, with lease terms that are generally five years or less. The Company generally has lease arrangements that have minimum lease payments. Certain of the Company’s leased store locations have variable payments based upon actual costs of common area maintenance, real estate taxes and property and liability insurance. In addition, some of the Company’s leased store locations have provisions for variable payments based upon a specified percentage of defined sales volume or dependent on an existing index or rate, such as the consumer price index or the prime interest rate. Also, some of the Company’s leases contain escalation clauses and provide for contingent rents based on a percent of sales in excess of defined minimums. As most of the Company’s leases include one or more options to renew and extend the lease term, the exercise of lease renewal options is at the Company’s sole discretion. Generally, a renewal option is not deemed to be reasonably certain to be exercised until such option is legally executed. The Company’s store location leases do not include purchase options or residual value guarantees on the leased property. The depreciable life of leasehold improvements are limited by the expected lease term. Due to the large number of temporary store location closures as a result of the COVID-19 pandemic during fiscal 2021, the Company negotiated with landlords for rent concessions, either in the form of rent abatement (meaning no rent due for select months) or rent deferral (meaning rent payments are delayed until a future period). The majority of the delayed rent payments were made during fiscal 2022. As a result of these rent concessions, the Company has adjusted its operating lease liabilities on the accompanying Consolidated Balance Sheets. A majority of the Company’s leases are classified as operating leases and the associated assets and liabilities are presented as separate lines on the Consolidated Balance Sheets. Operating lease assets and operating lease liabilities are recognized at the date the leased property is delivered to the Company based on the present value of the remaining future minimum lease payments. Additional information related to the Company’s operating leases is as follows: Fiscal year ended January 28, January 29, (In millions) Cash paid for amounts included in the measurement of operating lease liabilities (1) $ 236.8 $ 246.7 Operating lease assets obtained in exchange for new operating lease liabilities $ 86.9 $ 120.3 Operating lease cost (2) $ 225.5 $ 217.5 Variable lease cost (2) $ 59.2 $ 59.5 Weighted-average remaining lease term 6.12 years 6.11 years Weighted-average discount rate 6.54 % 5.91 % (1) Reflected as operating cash outflows in the accompanying Consolidated Statements of Cash Flows. (2) Reflected as SG&A expenses in the accompanying Consolidated Statements of Comprehensive Income (Loss) The Company has a small number of leases classified as finance leases. Financing leases and financing lease liabilities are recognized at the date the leased asset is delivered to the Company based on the present value of the remaining future minimum lease payments. Additional information related to the Company's financing leases is as follows: Fiscal year ended January 28, January 29, (In millions) Cash paid for amounts included in the measurement of financing lease liabilities (1) $ 11.3 $ 8.4 Financing lease assets obtained in exchange for new financing lease liabilities $ 5.0 $ 11.9 Financing lease cost (2) $ 11.4 $ 9.5 Weighted-average remaining lease term 2.71 years 1.81 years Weighted-average discount rate 5.95 % 3.75 % (1) Reflected as operating or financing cash outflows in the accompanying Consolidated Statements of Cash Flows. (2) Reflected as depreciation and amortization or interest expense, net in the accompanying Consolidated Statements of Comprehensive Income (Loss) Finance leases are presented in the Consolidated Balance Sheets as follows: Classification January 28, January 29, (In millions) Assets: Finance lease assets, net Property, equipment and leasehold improvements, net $ 14.4 $ 15.2 Liabilities: Current portion of finance lease liabilities Accrued expenses 8.1 9.2 Long-term portion of finance lease liabilities Other long-term liabilities 8.2 7.8 In fiscal 2023 and fiscal 2022, the Company incurred $ 10.5 million and $ 8.8 million, respectively, of finance lease amortization expense which is presented as depreciation and amortization within the accompanying Consolidated Statements of Comprehensive Income (Loss). In fiscal 2023 and fiscal 2022, the Company incurred $ 0.9 million and $ 0.7 million, respectively, of finance lease interest expense which is presented as interest expense, net within the accompanying Consolidated Statements of Comprehensive Income (Loss). The following is a schedule of future minimum rental payments under non-cancelable operating and financing leases as of January 28, 2023: Future Minimum Rental Fiscal Year: Operating Finance Total (In millions) 2024 $ 228.7 $ 8.9 $ 237.6 2025 207.1 3.8 210.9 2026 175.5 2.3 177.8 2027 136.4 2.3 138.7 2028 99.0 0.7 99.7 Thereafter 250.3 — 250.3 Total lease payments $ 1,097.0 $ 18.0 $ 1,115.0 Less: imputed interest ( 212.2 ) ( 1.7 ) ( 213.9 ) Present value of lease liabilities $ 884.8 $ 16.3 $ 901.1 (1) Operating lease payments do not include leases entered in to but not commenced during fiscal 2023. We committed to approximately five leases to commence in fiscal year 2024 with average terms of 10 years and future minimum lease payments of approximately $ 20.8 million. (2) Finance lease payments do not include leases entered in to but not commenced during fiscal year 2023. We committed to no new leases to commence in fiscal year 2024. |
Accrued Expenses and Other Long
Accrued Expenses and Other Long-Term Liabilities | 12 Months Ended |
Jan. 28, 2023 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued Expenses and Other Long-Term Liabilities | Note 6—Accrued Expenses and Other Long-Term Liabilities Accrued expenses consisted of the following: January 28, January 29, (In millions) Accrued taxes $ 24.6 $ 23.6 Accrued compensation and payroll taxes 22.5 39.7 Accrued interest 1.6 0.6 Workers’ compensation and general liability insurance 6.8 9.9 Occupancy and rent-related liabilities 2.3 2.1 Customer gift cards 41.7 41.4 Capital expenditures payable 2.6 4.7 Finance lease obligations 8.1 9.2 Other 9.0 11.2 Total accrued expenses $ 119.2 $ 142.4 Other long-term liabilities consisted of the following: January 28, January 29, (In millions) Workers’ compensation and general liability insurance $ 12.2 $ 15.8 Finance lease obligations 8.2 7.8 Other 8.3 12.7 Total other long-term liabilities $ 28.7 $ 36.3 Total discounted insurance liabilities for fiscal 2023 were $ 19.0 million, reflecting a 3.8 % discount rate, and for fiscal 2022 were $ 25.7 million, reflecting a 0.4 % discount rate. The long-term portion of certain workers’ compensation and general liability accruals are discounted to their net present value based on expected loss payment patterns determined by independent actuaries using actual historical payments. The following table represents a five year schedule for estimated future long term insurance liabilities: Fiscal Year-Ended Liability (In millions) 2025 $ 3.5 2026 2.9 2027 2.3 2028 1.3 2029 0.7 Thereafter 1.5 Total long-term workers’ compensation and general liability insurance $ 12.2 |
Property, Equipment and Leaseho
Property, Equipment and Leasehold Improvements | 12 Months Ended |
Jan. 28, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Leasehold Improvements | Note 7—Property, Equipment and Leasehold Improvements Property, equipment and leasehold improvements consisted of the following: January 28, January 29, (In millions) Land and buildings $ 53.0 $ 52.5 Furniture, fixtures and equipment 378.6 366.9 Purchased software and computer equipment 110.0 110.8 Leasehold improvements 421.9 374.6 Construction in progress 2.6 6.6 Finance lease assets 33.6 28.7 999.7 940.1 Less accumulated depreciation and amortization ( 711.9 ) ( 683.3 ) Property, equipment and leasehold improvements, net $ 287.8 $ 256.8 Depreciation expense was $ 71.9 million in fiscal 2023, $ 73.2 million in fiscal 2022 and $ 73.1 million in fiscal 2021 . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Jan. 28, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 8— Goodwill and Other Intangible Assets The Company acquired certain intangible assets and recognized goodwill based on the excess of purchase price over the fair value of assets acquired and liabilities assumed. As of October 30, 2022, the Company performed a quantitative impairment analysis of the indefinite lived intangible assets including the JOANN trade name and joann.com domain name. The Company compared the fair value of the intangible assets to the carrying value utilizing a relief from royalty approach. We considered a Level 3 measurement approach to assess the fair value of these assets and included a weighted average cost of capital of 14.7 % in our assessment. Based on the analysis performed, the carrying value of the JOANN trade name exceeded the fair value; therefore, the Company recorded a non-cash pre-tax impairment charge of $ 95.0 million. This charge was recorded as trade name impairment within the accompanying Consolidated Statements of Comprehensive Income (Loss) during the fourth quarter of fiscal 2023. The analysis performed did not indicate that the carrying value of the joann.com domain name exceeded the fair value; therefore, no impairment charge was recorded. If the Company's operating results deteriorate further, an impairment charge could be recognized in future periods. The carrying amount and accumulated amortization of identifiable intangible assets was: January 28, 2023 January 29, 2022 Estimated Gross Accumulated Amortization Gross Accumulated Amortization (In millions) Indefinite-lived intangible assets: JOANN trade name (1) $ 230.0 $ — $ 325.0 $ — joann.com domain name 10.0 — 10.0 — Intangible assets subject to amortization: Creativebug trade name 10 0.1 0.1 0.1 — Technology 3 5.3 1.6 — — Customer relationships 16 110.0 81.6 110.0 74.8 Total intangible assets $ 355.4 $ 83.3 $ 445.1 $ 74.8 (1) The gross carrying value of the JOANN trade name is reflected net of $ 100.0 million of accumulated impairment charges as of January 28, 2023. For fiscal 2023, fiscal 2022 and fiscal 2021, intangible asset amortization expense of $ 8.5 million , $ 6.9 million and $ 6.9 million , respectively, was recognized by the Company. The weighted average remaining amortization period of finite-lived intangible assets as of January 28, 2023 and January 29, 2022 approximated 3.9 years and 5 .1 years , respectively. The remaining amortization of intangible assets with definitive lives by year is as follows (in millions): Fiscal Year Amortization 2024 $ 8.7 2025 8.7 2026 7.0 2027 6.9 2028 0.8 Thereafter — Total $ 32.1 On March 4, 2022, the Company purchased the remaining equity interest in WeaveUp, Inc. ("WeaveUp") for $ 4.3 million. Acquisition-related costs of $ 0.1 million were recognized in SG&A expenses within the accompanying Consolidated Statements of Comprehensive Income (Loss). Prior to the closing of the acquisition, the Company recorded its 12.3 % equity investment in WeaveUp at cost and adjusted for observable transactions for same or similar investments in WeaveUp, as applicable. Upon acquisition of the remaining equity interest in WeaveUp, the Company decreased the value of its previously held investment to its fair value of $ 1.0 million, which resulted in a loss of $ 1.0 million. The fair value of the previously held investment was determined using Level 3 valuation techniques. The loss was recorded as investment remeasurement within the Consolidated Statements of Comprehensive Income (Loss) in the first quarter of fiscal 2023. An intangible asset for WeaveUp’s developed technology with a value of $ 5.3 million was recorded as a result of the acquisition. The intangible asset will be amortized over its estimated useful life of 3 years. The other assets and liabilities acquired in the purchase of WeaveUp were not material. Also as of October 30, 2022, the Company performed a quantitative impairment analysis of goodwill related to the JOANN reporting unit. The implied fair value of our reporting unit is determined based on significant unobservable inputs and these inputs fall within Level 3 of the fair value hierarchy. The Company performed a discounted cash flow analysis and a market multiple analysis and used the resulting average as the reporting unit's fair value. The estimated fair value of the reporting unit exceeded the carrying value (expressed as a percentage of carrying value) by approximately 10 %, resulting in no goodwill impairment for the reporting unit. If the reporting unit's operating results deteriorate further, an impairment charge could be recognized in future periods. Changes in the carrying value of goodwill were as follows: Fiscal Year Ended January 28, January 29, (In millions) Goodwill, gross $ 643.8 $ 643.8 Accumulated impairment ( 481.8 ) ( 481.8 ) Goodwill, net $ 162.0 $ 162.0 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9—Income Taxes The significant components of the income tax provision (benefit) were as follows: Fiscal Year Ended January 28, January 29, January 30, (In millions) Current: Federal $ ( 1.1 ) $ 11.7 $ 18.9 State and local 0.9 1.7 13.0 ( 0.2 ) 13.4 31.9 Deferred: Federal ( 54.7 ) 0.1 ( 1.8 ) State and local ( 18.3 ) ( 0.5 ) ( 2.1 ) ( 73.0 ) ( 0.4 ) ( 3.9 ) Income tax provision (benefit) $ ( 73.2 ) $ 13.0 $ 28.0 The reconciliation of the income tax provision (benefit) at the statutory rate to the income tax provision (benefit) was as follows: Fiscal Year Ended January 28, January 29, January 30, (In millions) Federal income tax provision (benefit) at the statutory rate $ ( 57.0 ) 21.0 % $ 14.6 21.0 % $ 50.5 21.0 % Effect of: Changes in valuation allowances ( 1.2 ) 0.4 ( 0.4 ) ( 0.6 ) ( 25.5 ) ( 10.6 ) State and local taxes, net of federal benefit ( 13.1 ) 4.8 1.7 2.4 12.8 5.3 Revaluation of federal NOL carryback — — — — ( 4.8 ) ( 2.0 ) Officers’ life insurance ( 1.4 ) 0.5 ( 1.3 ) ( 1.9 ) ( 0.4 ) ( 0.2 ) Uncertain tax positions (inclusive of penalties and interest) ( 0.2 ) 0.1 0.1 0.1 ( 0.5 ) ( 0.2 ) Federal general business credits ( 1.4 ) 0.5 ( 1.0 ) ( 1.4 ) ( 0.8 ) ( 0.3 ) Revaluation of deferred tax liability due to state tax law changes — — ( 1.0 ) ( 1.4 ) ( 0.2 ) ( 0.1 ) Other, net 1.1 ( 0.3 ) 0.3 0.5 ( 3.1 ) ( 1.2 ) Income tax provision (benefit) $ ( 73.2 ) 27.0 % $ 13.0 18.7 % $ 28.0 11.7 % The Company’s effective income tax rate for fiscal 2023 was 27.0 % , an income tax benefit on a pre-tax book loss, compared to the rate for fiscal 2022, which was 18.7 % , an income tax provision on pre-tax book income. The effective tax rate increased from fiscal 2022 to fiscal 2023 because there was a pre-tax loss in fiscal 2023 and pre-tax income in fiscal 2022. The Company's favorable permanent book-tax differences decrease the effective tax rate when applied to pre-tax income, while these favorable permanent book-tax differences increase the effective tax rate when there is a pre-tax loss. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law by the President on March 27, 2020. Among other things, it provides economic relief to individuals and businesses. Tax law changes in the CARES Act impacted the Company in a number of different ways, including enhanced interest expense deductibility for fiscal 2020 and fiscal 2021 resulting from changes to the computation of the related limitation, carrying back net operating losses for fiscal 2020 and fiscal 2021 to the five prior years, including tax years with a 35 % corporate income tax rate, and full depreciation qualified improvement property in the year the property is placed in service, starting with fiscal 2020 and fiscal 2021, because of a technical correction to the Tax Cuts and Jobs Act of 2017. The Company recorded additional valuation allowances during fiscal 2020 to reflect that the deferred tax assets relating to the federal interest expense deduction, the federal charitable contribution deduction and state income/franchise tax credits were determined to be not realizable based on the available sources of income. However, during fiscal 2021, the Company released the valuation allowances relating to the federal interest expense deduction and the federal charitable contribution deduction because there was an increase in pre-tax income and changes to the associated tax law through the CARES Act, which resulted in sufficient taxable income in the current fiscal year to fully utilize the related carryforwards. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the Company’s deferred tax assets and liabilities were as follows: January 28, January 29, (In millions) Deferred tax assets: Lease obligations $ 225.2 $ 231.1 Federal net operating loss carryforwards 26.7 1.0 Interest expense carryforward 15.1 1.8 Inventory items 9.3 9.3 Team member benefits 9.1 11.6 State net operating loss carryforwards 6.9 0.4 State credits 1.9 2.1 Other 9.5 5.3 Subtotal 303.7 262.6 Valuation allowances ( 3.7 ) ( 3.9 ) Total deferred tax assets 300.0 258.7 Deferred tax liabilities: Depreciation ( 50.3 ) ( 43.7 ) Identified intangibles ( 68.3 ) ( 94.4 ) Operating lease assets ( 198.3 ) ( 208.3 ) Total deferred tax liabilities ( 316.9 ) ( 346.4 ) Net deferred taxes $ ( 16.9 ) $ ( 87.7 ) Income taxes are estimated for federal and each state jurisdiction in which the Company operates. This approach involves assessing the current tax exposure together with temporary differences which result from differing treatment of items for tax and book purposes. Deferred tax assets and liabilities are established based on these assessments. Deferred tax assets are evaluated for recoverability based on future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in carryback years and tax planning strategies. To the extent that recovery is deemed unlikely, a valuation allowance is recorded. The Company’s valuation allowances were $ 3.7 million and $ 3.9 million as of January 28, 2023 and January 29, 2022, respectively. The valuation allowances decreased due to the utilization of the related state tax credits on state tax returns filed during fiscal 2023. Many years of data have been incorporated into the determination of tax reserves, and the Company’s estimates have historically proven to be reasonable. The Company has approximately $ 127.1 million of gross federal net operating loss (“NOL”) carryforwards, of which $ 122.3 million can be carried forward indefinitely. The Company also has approximately $ 128.3 million of gross state NOL carryforwards, of which $ 24.9 million can be carried forward indefinitely. The NOL carryforwards that cannot be carried forward indefinitely will expire beginning in fiscal 2024 through fiscal 2043. The Company has net state tax credits of $ 1.9 million, with a full valuation allowance of $ 1.9 million related to state tax credits. The Company files income tax returns in various jurisdictions, including the U.S., China and certain states, counties and municipalities, in accordance with applicable nexus requirements. For U.S. federal, state and local purposes, the Company is no longer subject to income tax examinations by taxing authorities for fiscal years prior to fiscal 2017, with some exceptions for state and local purposes due to longer statutes of limitations or the extensions of statutes of limitations. A reconciliation of the beginning and ending amounts of uncertain tax positions for the past three fiscal years is as follows: Fiscal Year Ended January 28, January 29, January 30, (In millions) Balance at beginning of fiscal year $ 1.2 $ 1.2 $ 9.9 Increases related to prior year tax positions 0.2 0.4 0.3 Decreases related to prior year tax positions — — — Settlements — ( 0.2 ) ( 8.7 ) Lapse of statute of limitations ( 0.4 ) ( 0.2 ) ( 0.3 ) Balance at end of fiscal year $ 1.0 $ 1.2 $ 1.2 At the end of fiscal 2023, the Company’s uncertain tax positions were $ 1.0 million, of which $ 0.8 million would affect the effective tax rate, if recognized. Within the next 12 months, it is reasonably possible that uncertain tax positions could be reduced by approximately $ 0.1 million resulting from resolution or closure of tax exa minations. Any increase in the amount of uncertain tax positions within the next 12 months is expected to be insignificant. The Company records interest and penalties on uncertain tax positions as a component of the income tax provision. The total amount of interest and penalties accrued as of the end of fiscal 2023 and fiscal 2022 was $ 0.1 million for both periods. During fiscal 2021, the Company settled a dispute with the IRS relating to the fiscal 2015 to 2018 tax years. Prior to the settlement, the Company had an unrecognized income tax benefit of $ 8.7 million relating to these tax years. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 28, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 10—Stock-Based Compensation Equity Incentive Plans In March 2011, the 2011 Stock Option Plan of Needle Holdings was adopted, authorizing Needle Holdings to provide certain team members with options to purchase Needle Holdings common shares. In October 2012, as part of the formation of the Holding Company, the Stock Option Plan, dated October 16, 2012 (the “2012 Plan”), formerly known as the 2011 Stock Option Plan of Needle Holdings, was assumed by the Holding Company. With the approval of the JOANN Inc. 2021 Equity Incentive Plan, as discussed below, no additional grants will be made under the 2012 Plan. In connection with its initial public offering, the Company adopted the JOANN Inc. 2021 Equity Incentive Plan (“2021 Plan”). The 2021 Plan provides for the grant of stock options, restricted stock units and other stock-based awards to team members and non-employee directors. The maximum number of shares of the Company's common stock available for issuance under the 2021 Plan is equal to 2,000,000 shares of the Company's common stock subject to an annual automatic increase equal to 4 % of the total number of shares outstanding on the last day of the immediately preceding fiscal year or a lesser number as determined by the Company’s board of directors. As of January 28, 2023 , there were 2,780,563 awards available to be issued under the 2021 Plan. Retirement Provision Modification to Stock Option and Equity Incentive Plans On August 17, 2022, the Board of Directors approved an amendment to both the 2012 Plan and the 2021 Plan, which allows for the continued vesting of a participant’s awards upon retirement from the Company, provided they meet certain eligibility requirements. In the event an employee retires and does not meet these requirements, the award is forfeited. As a result of these plan modifications, the Company recognized $ 2.5 million in accelerated stock-based compensation expense within the Consolidated Statements of Comprehensive Income (Loss) during fiscal 2023. Stock Options Stock options expire ten years after the date of grant. The options vest and become exercisable based on continued service to the Company. Stock options granted under the 2012 Plan vest over five years at 40 % after the first two years and 20 % each year thereafter. Stock options granted under the 2021 Plan have a graded vesting period of four years whereby one-fourth of the awards vest on each of the anniversaries of the grant date. The following is a summary of stock option activity for fiscal 2023: Number of Options Weighted-Average Exercise Price Per Option Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) Outstanding at beginning of fiscal 2023 2,841,452 $ 7.78 Granted 1,347,695 $ 10.47 Exercised ( 36,740 ) $ 11.03 Cancelled ( 558,483 ) $ 8.88 Outstanding at end of fiscal 2023 3,593,924 $ 8.59 6.9 $ 1.6 Exercisable at end of fiscal 2023 1,626,146 $ 7.73 5.2 $ 0.8 The total intrinsic value of stock options exercised w as less than $ 0.1 million and $ 3.0 million in fiscal 2023 and fiscal 2022 , respectively. There were no stock options exercised in fiscal 2021 and, as such, there was no intrinsic value to be calculated and no cash proceeds received. Cash proceeds from the exercise of stock option awards were $ 0.4 million and $ 1.8 million in fis cal 2023 and fiscal 2022, respectively. The weighted-average fair value of options granted was estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions: Fiscal Year Ended January 28, January 29, January 30, Weighted-average fair value per option $ 3.45 $ 4.02 $ 0.50 Expected volatility rate 49.11 % 48.00 % 41.25 % Risk free interest rate 2.01 % 1.04 % 0.68 % Expected term of options 6.3 years 6.3 years 7.0 years Expected dividend yield 4.2 % 3.3 % 0.0 % Expected stock price volatility was estimated using the historical volatility for industry peers based on daily price observations over a period equivalent to the expected term of the awards. The risk-free interest rate was determined using an interest rate based on U.S. Treasury zero-coupon notes with terms consistent with the expected term. Due to a lack of statistically significant historical data, related to the options issued under the 2021 Plan and corresponding exercises, the expected term was determined using a simplified approach, calculated as the mid-point between the graded vesting period and the contractual life of the award. The Company determined the dividend yield by dividing the expected annual dividend on the Company's stock by the option exercise price. The Company accounts for forfeiture of non-vested options as they occur. Restricted Stock Units The Company issued restricted stock units to certain team members, which have a vesting period of three years whereby one-third of the awards vest on each of the three anniversaries of the grant date. The Company also issued restricted stock units to non-employee members of its board of directors, all of which vest on the first anniversary of the grant date. The fair value for restricted stock units is calculated based on the stock price on the date of grant. The following is a summary of restricted stock unit activity for fiscal 2023: Number of Restricted Stock Units Weighted-Average Grant Date Fair Value Unvested at beginning of fiscal 2023 196,283 $ 12.85 Granted 544,514 $ 9.78 Released ( 95,040 ) $ 12.10 Forfeited ( 94,116 ) $ 10.77 Unvested at end of fiscal 2023 551,641 $ 10.30 The total fair value of shares that vested during fiscal 2023 was $ 1.2 million. There were no such vestings during fiscal 2022 or fiscal 2021. ESPP The Company's ESPP allows eligible team members to purchase shares of the Company's common stock at a discount through payroll deductions. The ESPP consists of six-month offering periods, with a new offering period commencing on the first trading day on or after January 1 and July 1 of each year. Team members may purchase shares in each offering period at 85 % of the market value of the Company's common stock at either the beginning of the offering period or the end of the offering period, whichever price is lower. The maximum number of shares of the Company's common stock available for issuance under the ESPP is equal to 400,000 shares subject to an annual automatic increase equal to the lesser of 1% of the total number of shares outstanding on the last day of the immediately preceding calendar year, 400,000 shares or a lesser number as determined by the Company’s board of directors. The weighted-average fair value of shares issued under the ESPP was estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions: Fiscal Year Ended January 28, Weighted-average fair value per share issued $ 0.68 Expected volatility rate 55.33 % Risk free interest rate 4.11 % Expected term 0.5 years Expected dividend yield 1.7 % Expected stock price volatility was estimated using the historical volatility for the Company based on daily price observations over a period equivalent to the expected term. The risk-free interest rate was determined using an interest rate based on U.S. Treasury zero-coupon notes with terms consistent with the expected term. The expected term was determined using the time period between the beginning of the offering period and the end of the offering period. The Company determined the dividend yield by dividing the expected annual dividend on the Company's stock by the share price on the date of grant. The Company accounts for forfeitures as they occur. During fiscal 2023, the Company issued 350,834 shares of common stock under the ESPP at an average price of $ 3.64 , resulting in proceeds of $ 1.3 million and a recorded loss upon reissuance of $ 1.8 million within additional paid in capital, which resulted from the plan's discount on purchase. There were no such issuances during fiscal 2022. As of January 28, 2023 , the Company had 849,166 shares of common stock available for issuance under the ESPP. Stock-based Compensation Expense The following table shows the expense recognized by the Company for stock-based compensation: Fiscal Year Ended January 28, January 29, January 30, (In millions) Stock-based compensation expense $ 7.3 $ 2.5 $ 1.5 As of January 28, 2023, there was $ 5.9 million of unrecognized stock-based compensation expense which is expected to be recognized over a weighted-average period of 1.9 years. Stock-based compensation expense is recorded in Selling, general and administrative expenses within the accompanying Consolidated Statements of Comprehensive Income (Loss). |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 28, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 11—Earnings Per Share Basic earnings per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding. Diluted earnings per share is computed based upon the weighted-average number of common shares outstanding plus the dilutive effect of common share equivalents calculated using the treasury stock method. Treasury stock is excluded from the denominator in calculating both basic and diluted earnings per share. In periods in which a net loss has occurred, as is the case for fiscal 2023, the dilutive effect of equity-based awards is not recognized and thus not utilized in the calculation of diluted loss per share, because the effect of their inclusion would have been anti-dilutive. The following table sets forth the reconciliation of the numerator and the denominator of basic and diluted income (loss) per share for fiscal 2023, fiscal 2022 and fiscal 2021: Fiscal Year Ended January 28, January 29, January 30, (In millions except per share data) Net income (loss) $ ( 200.6 ) $ 56.7 $ 212.3 Weighted-average common shares outstanding – basic 40.7 40.8 34.9 Effect of dilutive stock-based awards — 1.3 0.9 Weighted-average common shares outstanding – diluted 40.7 42.1 35.8 Basic earnings (loss) per common share $ ( 4.93 ) $ 1.39 $ 6.08 Diluted earnings (loss) per common share $ ( 4.93 ) $ 1.35 $ 5.93 Antidilutive stock-based awards excluded from diluted calculation 4.6 1.4 1.2 |
Segments and Disaggregated Reve
Segments and Disaggregated Revenue | 12 Months Ended |
Jan. 28, 2023 | |
Segment Reporting [Abstract] | |
Segments and Disaggregated Revenue | Note 12—Segments and Disaggregated Revenue The Company conducts its business activities and reports financial results as one operating segment and one reportable segment, which includes the Company’s store locations and integrated omni-channel operations. Due to its integrated omni-channel strategy, the Company views omni-channel sales as an extension of its physical store locations. The presentation of financial results as one reportable segment is consistent with the way the Company operates its business and is consistent with the manner in which the Chief Operating Decision Maker (“CODM”) makes decisions about allocating resources and assessing performance. Furthermore, the Company notes that monitoring financial results as one reportable segment helps the CODM manage costs on a consolidated basis, consistent with the integrated nature of its operations. The following table shows revenue by product category: Fiscal Year Ended January 28, January 29, January 30, (In millions) Sewing $ 1,009.2 $ 1,091.1 $ 1,399.3 Arts and Crafts and Home Décor 1,171.1 1,291.3 1,313.4 Other 36.6 35.2 49.6 Total $ 2,216.9 $ 2,417.6 $ 2,762.3 Substantially all of the Company’s identifiable assets are located in the United States. The Company does not have significant sales outside the United States, nor does any customer represent more than 10% of total revenues for any period presented. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Jan. 28, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13—Commitments and Contingencies The Company is involved in various litigation matters in the ordinary course of its business. The Company is not currently involved in any litigation that it expects, either individually or in the aggregate, will have a material adverse effect on its financial condition or results of operations. The Company has various purchase commitments related to agreements for technology and other purchases, in which minimum guaranteed payments are required. These payments total $ 17.8 million and are required to be paid over the next three fiscal years. |
Savings Plan Retirement and Pos
Savings Plan Retirement and Postretirement Benefits | 12 Months Ended |
Jan. 28, 2023 | |
Retirement Benefits [Abstract] | |
Savings Plan Retirement and Postretirement Benefits | Note 14—Savings Plan Retirement and Postretirement Benefits The Company sponsors the 401(k) Plan, which is a tax deferred savings plan whereby eligible team members may elect to contribute up to 50 % of annual compensation on a pre-tax basis. The Company makes a 50 % matching contribution up to six percent of the team member’s annual compensation. The Company match is made in cash and is participant-directed. The amount of the Company’s matching contribution was $ 2.6 million in fiscal 2023, $ 2.9 million in fiscal 2022 and $ 2.6 million in fiscal 2021 . The Company does not provide post-retirement health care benefits for its team members. |
Gain on Sale and Leaseback of D
Gain on Sale and Leaseback of Distribution Center | 12 Months Ended |
Jan. 28, 2023 | |
Leases [Abstract] | |
Gain on Sale Leaseback of Distribution Center | Note 15—Gain on Sale and Leaseback of Distribution Center During the second quarter of fiscal 2022, the Company completed a sale and leaseback transaction for its distribution center located in Opelika, Alabama for a sale price of $ 48.1 million. The transaction qualifies for sales recognition under the sale leaseback accounting requirements, and the Company recorded a gain of $ 24.5 million. Net after tax proceeds from the sale were primarily used to repay borrowings under the Term Loan due 2023 and ABL Facility. The lease related to this transaction has an initial term of 20 years and two 10-year extension options . At commencement of the lease, the Company recorded operating lease liabilities of $ 37.5 million and operating lease assets of $ 37.5 million. The discount rate for the lease was 6.28 %. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 28, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16—Subsequent Events The Company entered into the Third Amendment to the ABL Facility on the Closing Date. The Third Amendment, among other things, adds a series of FILO Loans in an aggregate amount of $ 100.0 million, the full amount of which was drawn on the Closing Date and a portion of which proceeds were used, among other things, to refinance a portion of the revolving loans drawn and outstanding under the ABL Facility immediately prior to the Closing Date. The FILO Loans mature at the same time as the commitments under the ABL Facility on December 22, 2026 . The FILO Loans will not amortize. The FILO Loans are secured overnight financing rate ("SOFR") loans, that bear monthly interest at an annual rate of 9.75 % with one 100 basis point stepdown based on minimum Consolidated EBITDA (as defined in the Third Amendment) and are subject to a SOFR floor of 1.50 %. The Third Amendment also amends the ABL Facility to (i) include certain trade receivables in the borrowing base, (ii) provide that loans drawn pursuant to the Revolving Commitments (as defined in the Third Amendment) may be made at the Company's election as base rate loans or SOFR loans and (iii) increases the applicable margin for SOFR loans to 2.00 % with two twenty-five basis point step-downs based on excess availability. Revolving Loans (as defined in the Third Amendment) made in SOFR are subject to a credit spread adjustment of 0.10 % and a floor of 0.00 %. Other than the changes described above, all other material provisions of the ABL Facility remain unchanged and as previously disclosed. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 28, 2023 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations JOANN was founded in 1943 as a single retail store location. Today, JOANN is the nation’s leading fabric and craft specialty retailer. The Company's store locations and website feature a variety of competitively priced merchandise used in sewing, crafting and home decorating projects, including fabric, notions, crafts, frames, paper crafting supplies, artificial floral, finished seasonal and home décor items. As of January 28, 2023, the Company operated 833 store locations in 49 states. The significant accounting policies applied in preparing the accompanying Consolidated Financial Statements of the Company are summarized below. |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements include the accounts of the Holding Company, Needle Holdings and JOANN. All of the entities referenced in the prior sentence hereinafter will be referred to collectively as the “Company” and are all controlled by affiliates of LGP. All intercompany accounts and transactions have been eliminated upon consolidation. The Holding Company has no operating activities and is limited to the issuance of shares of common stock and stock-based awards, the repurchase of common shares, the issuance and repurchase of debt, the receipt and payment of dividends or distributions and the payment of interest expense. The authorized, issued and outstanding common shares and treasury shares shown on the Consolidated Balance Sheets are of the Holding Company. Likewise, Needle Holdings has no operating activities and is limited to the issuance of initial shares of common stock and stock-based awards and the payment of dividends or distributions. |
Initial Public Offering | Initial Public Offering On March 11, 2021, the Company’s registration statement on Form S-1 (File No. 333-253121) relating to its initial public offering was declared effective by the SEC. The Company’s shares of common stock began trading on the Nasdaq Global Market on March 12, 2021. The public offering price of the shares sold in the initial public offering was $ 12.00 per share. The initial public offering closed on March 11, 2021 and included 5,468,750 shares of common stock. As part of the Company’s initial public offering, the underwriters were provided with an option to purchase 1,640,625 additional shares at the initial public offering price. This option was exercised on April 13, 2021. In aggregate, the shares issued in the offering, including the exercise of the underwriters’ option, generated $ 76.9 million in net proceeds, which is net of $ 5.7 million in underwriters’ discount and commissions and $ 2.7 million in offering costs incurred. On March 19, 2021, in connection with the closing of the initial public offering, the Company used all net proceeds received from the initial public offering and borrowings from the ABL Facility (as defined below) to repay all of the outstanding borrowings and accrued interest under the Term Loan due 2024 (as defined below) totaling $ 72.7 million. Following such repayment, all obligations under the Term Loan due 2024 were terminated. |
Stock Split | Stock Split On March 3, 2021, the Company’s board of directors approved and effected an 85.8808880756715 -for-1.0 unit split of its common stock. All share and per share data included in these Consolidated Financial Statements give effect to the stock split and have been retroactively adjusted for all periods . |
Use Of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Since actual results may differ from those estimates, the Company revises its estimates and assumptions as new information becomes available. |
Fiscal Year | Fiscal Year The Company’s fiscal year ends on the Saturday closest to January 31 and refers to the year in which the period ends (e.g., fiscal 2023 refers to the year ended January 28, 2023 ). Fiscal years consist of 52 weeks unless noted otherwise. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance In December 2022, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2022-06—Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. ASU 2022-06 defers the sunset date of Topic 848 (ASU 2020-04) from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. Topic 848 was issued to provide entities certain optional expedients and exceptions when accounting for contracts and certain hedging relationships and other transactions affected by changes in the interest rates used for discounting cash flows, for computing variation margin settlements and for calculating price alignment interest in connection with reference rate reforms. These amendments were effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2024. The Company intends to apply this guidance when modifications of contracts that include LIBOR occur, which is not expected to have a material impact on its Consolidated Financial Statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents are all highly liquid investments with original maturities of three months or less. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value with cost determined on a weighted-average basis. Inventory valuation methods require certain management estimates and judgments, which affect the ending inventory valuation at cost, as well as the cost of sales reported for the year. These valuation methods include estimates of net realizable value on product designated for clearance and estimates of shrink between periods when the Company conducts distribution center inventory cycle counts and store location physical inventories to substantiate inventory balances. The Company’s accrual for shrink is based on the actual historical shrink results of recent distribution center inventory cycle counts and store location physical inventories. These estimates are compared to actual results as physical inventory counts are taken and reconciled to the general ledger. The majority of the Company’s store location physical inventory counts are taken in the first three quarters of each year and the shrink accrual recorded at January 28, 2023 is based on shrink results of these prior physical inventory counts. Store locations that have been open one year or longer are physically inventoried at least once over an 18-month cycle, with store locations exhibiting a higher rate of shrink to sales inventoried at least once per year. The Company continually monitors and adjusts the shrink rate estimates based on the results of store location physical inventory counts and shrink trends. Inventory reserves for clearance product are estimated based on a number of factors, including, but not limited to, quantities of slow moving or carryover seasonal merchandise on hand, historical recovery statistics and future merchandising plans. The accuracy of the Company’s estimates can be affected by many factors, some of which are outside of the Company’s control, including changes in economic conditions and consumer buying trends. Consignment inventory is not reflected in the Company’s Consolidated Financial Statements. Consignment inventory consists of patterns, magazines, books, calendars, DVDs, ribbons and seeds. Consignment inventory can be returned to the vendor at any time. At the time consigned inventory is sold, the Company records the purchase liability in accounts payable and the related cost of merchandise in cost of sales. |
Property, Equipment and Leasehold Improvements | Property, Equipment and Leasehold Improvements Property, equipment and leasehold improvements are stated at cost less accumulated depreciation and impairment. Depreciation is recorded over the estimated useful life of the assets principally by the straight-line method. The major classes of assets and ranges of estimated useful lives are: buildings and building/land improvements from 10 to 40 years; furniture and fixtures from five to 10 years; purchased software and computer equipment from three to five years; leasehold improvements for the lesser of 10 years or over the remaining term of the lease; and finance lease assets for the term of the underlying lease. Maintenance and repair expenditures are charged to expense as incurred and improvements and major renewals are capitalized. |
Software Development | Software Development The Company capitalized $ 6.8 million in fiscal 2023 , $ 4.7 million in fiscal 2022 and $ 4.1 million in fiscal 2021 for internal use software acquired from third parties. The capitalized amounts are included in property, equipment and leasehold improvements, net. The Company amortizes internal use software on a straight-line basis over periods ranging from three to five years beginning at the time the software becomes operational. Amortization expense was $ 6.4 million in fiscal 2023 , $ 6.5 million in fiscal 2022 and $ 7.3 million in fiscal 2021. The unamortized balance for internal use software was $ 17.0 million as of January 28, 2023 and $ 16.6 million as of January 29, 2022 . |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company assesses impairment of goodwill at the reporting unit level. A reporting unit is the operating segment, or a business unit one level below that operating segment, for which discrete financial information is prepared and regularly reviewed by segment management. As discussed in Note 12 – Segments and Disaggregated Revenue to our Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K, the Company has one operating segment and one reportable segment. Annually, as of the first day of the fourth quarter, and more frequently if circumstances indicate impairment may exist, the Company assesses qualitative factors to determine if it is more-likely-than-not that the fair value of its single reporting unit is below its carrying value. If it is determined that this is more-likely-than-not, a quantitative assessment is performed. The quantitative assessment compares the fair value of a reporting unit to its current carrying value. The Company determines the estimated fair value of the reporting unit based on valuation techniques including discounted cash flows as well as a market comparable method. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that reporting unit, goodwill is not considered impaired. Annually, as of the first day of the fourth quarter, and more frequently if circumstances indicate impairment may exist, the Company assesses qualitative factors to determine if it is more-likely-than-not that the fair values of the indefinite-lived intangible assets not subject to amortization (JOANN trade name and joann.com Domain Name) are below their respective carrying values. If it is determined that this is more-likely-than-not, a quantitative assessment is performed. The quantitative assessment compares the fair value of an intangible assets to its respective current carrying value. The Company determines the estimated fair value of an intangible asset based upon the relief from royalty method. See Notes to Consolidated Financial Statements, Note 8—Goodwill and Other Intangible Assets for further details. |
Impairment of Long-Lived and Operating Lease Assets | Impairment of Long-Lived and Operating Lease Assets The Company evaluates long-lived and operating lease assets for impairment whenever events or changes in circumstances indicate that the carrying amount of those assets may not be recoverable. Factors considered that could trigger an impairment review include, but are not limited to, significant underperformance relative to historical or projected future operating results and significant changes in the manner of use of the assets or the Company’s overall business strategies. Potential impairment exists if the estimated undiscounted cash flow expected to result from the use of the asset is less than the carrying value of the asset. The amount of the impairment loss represents the excess of the carrying value of the asset over its fair value. Management estimates fair value based on a projected discounted cash flow method using a discount rate that is considered to be commensurate with the risk inherent in the Company’s current business model. Additional factors are taken into consideration, such as local market conditions, operating environment and other trends. Based on management’s ongoing review of the performance of its store locations, utilization of assets and other facilities, no material impairment losses were recognized in fiscal 2023, fiscal 2022 or fiscal 2021 . |
Store Pre-Opening and Closing Costs | Store Location Pre-Opening and Closing Costs Store location pre-opening costs are expensed as incurred and included in SG&A expenses on the accompanying Consolidated Statements of Comprehensive Income (Loss). These costs are incurred prior to a new store location or remodeled store location opening and include the hiring and training costs for new team members, processing costs of initial merchandise and rental expense for the period prior to the store location opening for business. The Company recognizes costs associated with exit or disposal activities at the time the obligation is incurred. In addition, any liabilities that arise from exit or disposal activities are initially measured and recorded at fair value. Store location pre-opening and closing costs were as follows: Fiscal Year Ended January 28, January 29, January 30, (In millions) Store location pre-opening costs $ 16.2 $ 5.1 $ 4.1 Store location closing costs 5.3 1.1 1.5 Total $ 21.5 $ 6.2 $ 5.6 |
Accrued Expenses | Accrued Expenses The Company estimates certain material expenses in an effort to record those expenses in the period incurred. The Company’s most material estimates relate to compensation, taxes and insurance-related expenses, significant portions of which are self-insured. The Company is self-insured for certain losses relating to general liability, workers’ compensation and team member medical benefit claims. The ultimate cost of the Company’s workers’ compensation and general liability insurance accruals are recorded based on actuarial valuations and historical claims experience. The Company’s team member medical insurance accruals are recorded based on its medical claims processed as well as historical medical claims experience for claims incurred but not yet reported. The Company maintains stop-loss coverage to limit the exposure to certain insurance-related risks. Management believes that the various assumptions developed and actuarial methods used to determine its self-insurance reserves are reasonable. Differences in estimates and assumptions could result in an accrual requirement materially different from the calculated accrual. Historically, such differences have not been significant. See Notes to Consolidated Financial Statements, Note 6—Accrued Expenses and Other Long-Term Liabilities for discussion regarding the Company’s accrued expenses. |
Financial Instruments | Financial Instruments A financial instrument is cash or a contract that imposes an obligation to deliver or conveys a right to receive cash or another financial instrument. The carrying values of the Company’s cash and cash equivalents, accounts payable and borrowings on the Company’s ABL Facility are considered to be representative of fair value due to the short maturity of these instruments. See Notes to Consolidated Financial Statements, Note 4—Fair Value Measurement for discussion regarding the fair value of the Company’s derivative instruments and term loan debt instruments. |
Income Taxes | Income Taxes The Company does business in various jurisdictions that impose income taxes. The aggregate amount of income tax expense to accrue and the amount currently payable are based upon the tax statutes of each jurisdiction, pursuant to the asset and liability method. This process involves adjusting book income for items that are treated differently by the applicable taxing authorities. Deferred tax assets and liabilities are reflected on the balance sheet for temporary differences that will reverse in subsequent years. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are estimated to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the tax rate is recognized in income or expense in the period during which the change is enacted. The Company considers indefinite-lived intangibles as a potential future source of taxable income when considering the realizability of indefinite-lived deferred tax assets. The current tax provision can be affected by the mix of income and identification or resolution of uncertain tax positions. Because income from different state jurisdictions may be taxed at different rates, the shift in mix between states during a year or over years can cause the effective tax rate to change. The rate is based on the best estimate of an annual effective rate, and those estimates are updated quarterly. The Company also regularly evaluates the status and likely outcomes of uncertain tax positions. Uncertain tax positions are provided for potential exposures when it is considered more-likely-than-not that a taxing authority may take a sustainable position on a matter contrary to the Company’s position. The Company evaluates these uncertain tax positions, including interest thereon, on a quarterly basis to ensure that they have been appropriately adjusted for events, including audit settlements, that may impact the ultimate payment for such exposure. As a matter of course, the Company is regularly audited by federal, state and local tax authorities. For federal purposes, effective fiscal 2015, the Company is part of the Compliance Assurance Process (“CAP”) program, pursuant to which it works collaboratively with the IRS in order to address issues prior to its filing of the return. CAP allows for the IRS to achieve an acceptable level of assurance regarding the accuracy of filed tax returns while substantially shortening the length of post-filing examinations. |
Share Repurchase Program and Treasury Stock | Share Repurchase Program and Treasury Stock Treasury stock consists of the Company’s common stock that has been issued, but subsequently reacquired. The Company accounts for treasury stock on the trade date under the cost method. Treasury stock is recorded as a reduction to shareholders’ equity, as the Company does not currently intend to retire the treasury stock held. When shares are reissued, the Company uses an average cost method to determine cost. |
Revenue Recognition | Revenue Recognition Revenue is primarily associated with sales of merchandise to customers within the Company’s store locations and customers utilizing its e-commerce channels. Retail sales, net of estimated returns and point-of-sale coupons and discounts, are recorded at the point-of-sale when customers take control of the merchandise in store locations. E-commerce sales include shipping revenue and are recorded upon delivery to the customer. Shipping and handling fees charged to customers are recorded as sales with related costs recorded as cost of sales. Sales taxes are not included in sales, as the Company acts as a conduit for collecting and remitting sales taxes to the appropriate governmental authorities. Payment is typically due at the point-of-sale, thus the Company does not have material customer receivables. The Company allows for merchandise to be returned under most circumstances. The current policy allows for customers to receive an even exchange or full refund based upon the original method of payment when the returned purchase is accompanied with a receipt. Historic customer return activity is used to estimate the returns reserve, which historically has not been material to the Company’s Consolidated Financial Statements. The Company presents the gross sales returns reserve in accounts payable and the estimated value of the merchandise expected to be returned in prepaid expenses and other current assets within the accompanying Consolidated Balance Sheets. Proceeds from the sale of JOANN gift cards are recorded as a liability and recognized as net sales when redeemed by the holder. Gift card breakage represents the remaining balance of the Company’s liability for gift cards for which the likelihood of redemption by the customer is remote. Gift card breakage is recognized as net sales in proportion to the pattern of rights exercised by the customer and is determined based on historical redemption patterns. The Company generally is not required by law to escheat the value of unredeemed gift cards to the states in which it operates. Activity related to the Company’s gift card liabilities was as follows: Fiscal Year Ended January 28, January 29, January 30, (In millions) Balance at beginning of period $ 41.4 $ 37.9 $ 32.4 Issuance of gift cards 37.5 43.6 45.9 Revenue recognized (1) ( 35.4 ) ( 38.9 ) ( 39.2 ) Gift card breakage ( 1.8 ) ( 1.2 ) ( 1.2 ) Balance at end of period $ 41.7 $ 41.4 $ 37.9 Revenue recognized from the beginning liability during fiscal 2023, fiscal 2022 and fiscal 2021 totaled $ 11.5 million , $ 9.3 million and $ 8.3 million , respectively. |
Cost of Sales | Cost of Sales Inbound freight and duties, including tariffs, related to import purchases and internal transfer costs are considered to be direct costs of the Company’s merchandise and, accordingly, are recognized when the related merchandise is sold as cost of sales. Cost of sales does not include depreciation and amortization. Purchasing and receiving costs, warehousing costs and other costs of the Company’s distribution network are considered to be period costs not directly attributable to the value of merchandise and, accordingly, are expensed as incurred as SG&A expenses. The Company receives vendor support, including cash discounts, volume discounts, allowances and markdown support. The Company has agreements in place with each vendor setting forth the specific conditions for each allowance or payment. Depending on the arrangement, the Company either recognizes the allowance as a reduction of current costs or defers the payment over the period the related merchandise is sold through cost of sales. |
Operating Leases | Operating Leases The Company records right-of-use lease assets and lease liabilities on its Consolidated Balance Sheets. Lease liabilities are recorded at a discount based upon the Company’s estimated incremental borrowing rate. Factors incorporated into the calculation of lease discount rates include the valuations and yields of the Company’s term loan facilities, their credit spread over comparable U.S. Treasury rates and an index of the credit spreads for U.S. Retail Company debt yields. The Company records lease cost on a straight-line basis over the base, non-cancelable lease term commencing on the date that the Company takes physical possession of the property from the landlord, which may include a period prior to the opening of a store location or other facility to make any necessary leasehold improvements and install fixtures. Any tenant allowances received are recorded as a reduction of lease payments when calculating the lease liability and the associated asset. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets and lease expense for such leases is recognized on a straight-line basis over the lease term. The Company combines lease and non-lease components. Many leases include one or more options to renew, and the exercise of lease renewal options is at the Company’s sole discretion. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. |
Related Party Transactions | Related Party Transactions During fiscal 2023 and fiscal 2022, the Company paid dividends of $ 9.2 million and $ 8.3 million, respectively, to LGP as part of the Company's dividend payments. |
Advertising Costs | Advertising Costs The Company expenses production costs of advertising the first time the advertising takes place. Advertising expense, net of co-operative advertising agreements, was $ 55.8 million for fiscal 2023, $ 59.4 million for fiscal 2022 and $ 60.6 million for fiscal 2021. Included in prepaid expenses and other current assets was $ 1.9 million and $ 1.6 million at the end of fiscal 2023 and fiscal 2022 , respectively, relating to prepayments of production costs for advertising. |
Stock-Based Compensation | Stock-Based Compensation The fair value of stock-based awards is recognized as compensation expense on a straight-line basis over the requisite service period of the awards within SG&A expenses on the accompanying Consolidated Statements of Comprehensive Income (Loss). The fair value of stock options is determined using the Black-Scholes option pricing model. Determining the fair value of options at the grant date requires judgment, including estimating the expected term that stock options will be outstanding prior to exercise and the associated volatility. Additionally, while not historically, currently or expected to be applicable to the Company, in the event that the Company is issuing share-based awards prior to the release of material nonpublic information, the Company will consider whether observable market prices need to be adjusted in determining the current price input for the awards. Prior to the Company’s initial public offering, the absence of an active market for the Company’s common stock required the Company’s board of directors to determine the fair value of its common stock for purposes of granting stock options. The Company obtained contemporaneous third-party valuations to assist the board of directors in determining the fair value of the Company’s common stock. Following the listing of the Company’s common stock on Nasdaq, it is not necessary to determine the fair value of its common stock, as its shares are traded in the public market. See Notes to Consolidated Financial Statements, Note 10—Stock-Based Compensation for further details. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Accounting Policies [Abstract] | |
Store Pre-Opening and Closing Costs | The Company recognizes costs associated with exit or disposal activities at the time the obligation is incurred. In addition, any liabilities that arise from exit or disposal activities are initially measured and recorded at fair value. Store location pre-opening and closing costs were as follows: Fiscal Year Ended January 28, January 29, January 30, (In millions) Store location pre-opening costs $ 16.2 $ 5.1 $ 4.1 Store location closing costs 5.3 1.1 1.5 Total $ 21.5 $ 6.2 $ 5.6 |
Schedule of Revenue Recognition from Gift Cards | Activity related to the Company’s gift card liabilities was as follows: Fiscal Year Ended January 28, January 29, January 30, (In millions) Balance at beginning of period $ 41.4 $ 37.9 $ 32.4 Issuance of gift cards 37.5 43.6 45.9 Revenue recognized (1) ( 35.4 ) ( 38.9 ) ( 39.2 ) Gift card breakage ( 1.8 ) ( 1.2 ) ( 1.2 ) Balance at end of period $ 41.7 $ 41.4 $ 37.9 Revenue recognized from the beginning liability during fiscal 2023, fiscal 2022 and fiscal 2021 totaled $ 11.5 million , $ 9.3 million and $ 8.3 million , respectively. |
Financing (Tables)
Financing (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | Long-term debt, net consisted of the following: January 28, January 29, (In millions) ABL Facility $ 324.0 $ 121.0 Term Loan due 2028 666.6 673.3 Total debt 990.6 794.3 Less unamortized discount and debt costs ( 7.8 ) ( 8.9 ) Total debt, net 982.8 785.4 Less current portion of debt ( 6.8 ) ( 6.8 ) Long-term debt, net $ 976.0 $ 778.6 |
Schedule of Maturities of Long-term Debt | At January 28, 2023, the Company’s fixed minimum debt principal maturities were as follows: Fiscal Year Revolving Term Loan Total (In millions) 2024 $ — $ 8.4 $ 8.4 2025 — 6.8 6.8 2026 — 6.7 6.7 2027 324.0 5.1 329.1 Thereafter — 639.6 639.6 $ 324.0 $ 666.6 $ 990.6 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Impacts of Derivative Instrument on Accompanying Consolidated Statements of Comprehensive Income (Loss) | The impacts of the Company’s derivative instruments on the accompanying Consolidated Statements of Comprehensive Income (Loss) for fiscal 2023, fiscal 2022 and fiscal 2021 are presented in the table below: Fiscal Year Ended January 28, January 29, January 30, (In millions) Interest rate swap - $200M notional amount $ 6.1 $ 2.4 $ — Interest rate swap - $250M notional amount 2.6 — — Interest rate cap - $681M notional amount — 0.4 0.7 Gain recognized in other comprehensive income (loss), gross of income taxes $ 8.7 $ 2.8 $ 0.7 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary Of Carrying And Fair Value Of Interest Rate Derivatives | The fair value of the Company’s interest rate derivatives were as follows: Instrument Balance Sheet January 28, January 29, (In millions) Interest rate swap - current Prepaid expenses and other current assets $ 3.7 $ — Interest rate swap - long term Other assets 7.4 2.4 |
Summary of Carrying and Fair Values of Term Loans | The following provides the carrying and fair values of the Company’s term loans as of January 28, 2023 and January 29, 2022: January 28, 2023 January 29, 2022 Carrying Fair Carrying Fair (In millions) Term Loan due 2028 (1) 658.8 374.7 664.3 656.0 (1) Net of deferred financing costs and original issue discount . |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Leases [Abstract] | |
Schedule of Operating Leases Associated Assets and Liabilities | Fiscal year ended January 28, January 29, (In millions) Cash paid for amounts included in the measurement of operating lease liabilities (1) $ 236.8 $ 246.7 Operating lease assets obtained in exchange for new operating lease liabilities $ 86.9 $ 120.3 Operating lease cost (2) $ 225.5 $ 217.5 Variable lease cost (2) $ 59.2 $ 59.5 Weighted-average remaining lease term 6.12 years 6.11 years Weighted-average discount rate 6.54 % 5.91 % (1) Reflected as operating cash outflows in the accompanying Consolidated Statements of Cash Flows. (2) Reflected as SG&A expenses in the accompanying Consolidated Statements of Comprehensive Income (Loss) |
Schedule of Financing Leases Associated Assets and Liabilities | Additional information related to the Company's financing leases is as follows: Fiscal year ended January 28, January 29, (In millions) Cash paid for amounts included in the measurement of financing lease liabilities (1) $ 11.3 $ 8.4 Financing lease assets obtained in exchange for new financing lease liabilities $ 5.0 $ 11.9 Financing lease cost (2) $ 11.4 $ 9.5 Weighted-average remaining lease term 2.71 years 1.81 years Weighted-average discount rate 5.95 % 3.75 % (1) Reflected as operating or financing cash outflows in the accompanying Consolidated Statements of Cash Flows. (2) Reflected as depreciation and amortization or interest expense, net in the accompanying Consolidated Statements of Comprehensive Income (Loss) |
Schedule of Leases Classified as Finance Leases presented in Balance sheet | Finance leases are presented in the Consolidated Balance Sheets as follows: Classification January 28, January 29, (In millions) Assets: Finance lease assets, net Property, equipment and leasehold improvements, net $ 14.4 $ 15.2 Liabilities: Current portion of finance lease liabilities Accrued expenses 8.1 9.2 Long-term portion of finance lease liabilities Other long-term liabilities 8.2 7.8 |
Lessee, Operating and Finance Lease, Liability, Maturity | The following is a schedule of future minimum rental payments under non-cancelable operating and financing leases as of January 28, 2023: Future Minimum Rental Fiscal Year: Operating Finance Total (In millions) 2024 $ 228.7 $ 8.9 $ 237.6 2025 207.1 3.8 210.9 2026 175.5 2.3 177.8 2027 136.4 2.3 138.7 2028 99.0 0.7 99.7 Thereafter 250.3 — 250.3 Total lease payments $ 1,097.0 $ 18.0 $ 1,115.0 Less: imputed interest ( 212.2 ) ( 1.7 ) ( 213.9 ) Present value of lease liabilities $ 884.8 $ 16.3 $ 901.1 (1) Operating lease payments do not include leases entered in to but not commenced during fiscal 2023. We committed to approximately five leases to commence in fiscal year 2024 with average terms of 10 years and future minimum lease payments of approximately $ 20.8 million. (2) Finance lease payments do not include leases entered in to but not commenced during fiscal year 2023. We committed to no new leases to commence in fiscal year 2024. |
Accrued Expenses and Other Lo_2
Accrued Expenses and Other Long-Term Liabilities (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following: January 28, January 29, (In millions) Accrued taxes $ 24.6 $ 23.6 Accrued compensation and payroll taxes 22.5 39.7 Accrued interest 1.6 0.6 Workers’ compensation and general liability insurance 6.8 9.9 Occupancy and rent-related liabilities 2.3 2.1 Customer gift cards 41.7 41.4 Capital expenditures payable 2.6 4.7 Finance lease obligations 8.1 9.2 Other 9.0 11.2 Total accrued expenses $ 119.2 $ 142.4 |
Schedule of Other Long Term Liabilities | Other long-term liabilities consisted of the following: January 28, January 29, (In millions) Workers’ compensation and general liability insurance $ 12.2 $ 15.8 Finance lease obligations 8.2 7.8 Other 8.3 12.7 Total other long-term liabilities $ 28.7 $ 36.3 |
Schedule of Estimated Future Long Term Insurance Liabilities | The following table represents a five year schedule for estimated future long term insurance liabilities: Fiscal Year-Ended Liability (In millions) 2025 $ 3.5 2026 2.9 2027 2.3 2028 1.3 2029 0.7 Thereafter 1.5 Total long-term workers’ compensation and general liability insurance $ 12.2 |
Property, Equipment and Lease_2
Property, Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, equipment and leasehold improvements consisted of the following: January 28, January 29, (In millions) Land and buildings $ 53.0 $ 52.5 Furniture, fixtures and equipment 378.6 366.9 Purchased software and computer equipment 110.0 110.8 Leasehold improvements 421.9 374.6 Construction in progress 2.6 6.6 Finance lease assets 33.6 28.7 999.7 940.1 Less accumulated depreciation and amortization ( 711.9 ) ( 683.3 ) Property, equipment and leasehold improvements, net $ 287.8 $ 256.8 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Amount and Accumulated Amortization of Identifiable Intangible Assets | The carrying amount and accumulated amortization of identifiable intangible assets was: January 28, 2023 January 29, 2022 Estimated Gross Accumulated Amortization Gross Accumulated Amortization (In millions) Indefinite-lived intangible assets: JOANN trade name (1) $ 230.0 $ — $ 325.0 $ — joann.com domain name 10.0 — 10.0 — Intangible assets subject to amortization: Creativebug trade name 10 0.1 0.1 0.1 — Technology 3 5.3 1.6 — — Customer relationships 16 110.0 81.6 110.0 74.8 Total intangible assets $ 355.4 $ 83.3 $ 445.1 $ 74.8 The gross carrying value of the JOANN trade name is reflected net of $ 100.0 million of accumulated impairment charges as of January 28, 2023. |
Schedule of Finite-Lived Intangible Assets, Remaining Amortization Expense | The remaining amortization of intangible assets with definitive lives by year is as follows (in millions): Fiscal Year Amortization 2024 $ 8.7 2025 8.7 2026 7.0 2027 6.9 2028 0.8 Thereafter — Total $ 32.1 On March 4, 2022, the Company purchased the remaining equity interest in WeaveUp, Inc. ("WeaveUp") for $ 4.3 million. Acquisition-related costs of $ 0.1 million were recognized in SG&A expenses within the accompanying Consolidated Statements of Comprehensive Income (Loss). Prior to the closing of the acquisition, the Company recorded its 12.3 % equity investment in WeaveUp at cost and adjusted for observable transactions for same or similar investments in WeaveUp, as applicable. Upon acquisition of the remaining equity interest in WeaveUp, the Company decreased the value of its previously held investment to its fair value of $ 1.0 million, which resulted in a loss of $ 1.0 million. The fair value of the previously held investment was determined using Level 3 valuation techniques. The loss was recorded as investment remeasurement within the Consolidated Statements of Comprehensive Income (Loss) in the first quarter of fiscal 2023. An intangible asset for WeaveUp’s developed technology with a value of $ 5.3 million was recorded as a result of the acquisition. The intangible asset will be amortized over its estimated useful life of 3 years. The other assets and liabilities acquired in the purchase of WeaveUp were not material. |
Summary of Carrying Amount of Goodwill | Changes in the carrying value of goodwill were as follows: Fiscal Year Ended January 28, January 29, (In millions) Goodwill, gross $ 643.8 $ 643.8 Accumulated impairment ( 481.8 ) ( 481.8 ) Goodwill, net $ 162.0 $ 162.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision | The significant components of the income tax provision (benefit) were as follows: Fiscal Year Ended January 28, January 29, January 30, (In millions) Current: Federal $ ( 1.1 ) $ 11.7 $ 18.9 State and local 0.9 1.7 13.0 ( 0.2 ) 13.4 31.9 Deferred: Federal ( 54.7 ) 0.1 ( 1.8 ) State and local ( 18.3 ) ( 0.5 ) ( 2.1 ) ( 73.0 ) ( 0.4 ) ( 3.9 ) Income tax provision (benefit) $ ( 73.2 ) $ 13.0 $ 28.0 |
Schedule of Reconciliation of Income Tax Provision | The reconciliation of the income tax provision (benefit) at the statutory rate to the income tax provision (benefit) was as follows: Fiscal Year Ended January 28, January 29, January 30, (In millions) Federal income tax provision (benefit) at the statutory rate $ ( 57.0 ) 21.0 % $ 14.6 21.0 % $ 50.5 21.0 % Effect of: Changes in valuation allowances ( 1.2 ) 0.4 ( 0.4 ) ( 0.6 ) ( 25.5 ) ( 10.6 ) State and local taxes, net of federal benefit ( 13.1 ) 4.8 1.7 2.4 12.8 5.3 Revaluation of federal NOL carryback — — — — ( 4.8 ) ( 2.0 ) Officers’ life insurance ( 1.4 ) 0.5 ( 1.3 ) ( 1.9 ) ( 0.4 ) ( 0.2 ) Uncertain tax positions (inclusive of penalties and interest) ( 0.2 ) 0.1 0.1 0.1 ( 0.5 ) ( 0.2 ) Federal general business credits ( 1.4 ) 0.5 ( 1.0 ) ( 1.4 ) ( 0.8 ) ( 0.3 ) Revaluation of deferred tax liability due to state tax law changes — — ( 1.0 ) ( 1.4 ) ( 0.2 ) ( 0.1 ) Other, net 1.1 ( 0.3 ) 0.3 0.5 ( 3.1 ) ( 1.2 ) Income tax provision (benefit) $ ( 73.2 ) 27.0 % $ 13.0 18.7 % $ 28.0 11.7 % |
Schedule of Components of Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred tax assets and liabilities were as follows: January 28, January 29, (In millions) Deferred tax assets: Lease obligations $ 225.2 $ 231.1 Federal net operating loss carryforwards 26.7 1.0 Interest expense carryforward 15.1 1.8 Inventory items 9.3 9.3 Team member benefits 9.1 11.6 State net operating loss carryforwards 6.9 0.4 State credits 1.9 2.1 Other 9.5 5.3 Subtotal 303.7 262.6 Valuation allowances ( 3.7 ) ( 3.9 ) Total deferred tax assets 300.0 258.7 Deferred tax liabilities: Depreciation ( 50.3 ) ( 43.7 ) Identified intangibles ( 68.3 ) ( 94.4 ) Operating lease assets ( 198.3 ) ( 208.3 ) Total deferred tax liabilities ( 316.9 ) ( 346.4 ) Net deferred taxes $ ( 16.9 ) $ ( 87.7 ) |
Schedule of Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of uncertain tax positions for the past three fiscal years is as follows: Fiscal Year Ended January 28, January 29, January 30, (In millions) Balance at beginning of fiscal year $ 1.2 $ 1.2 $ 9.9 Increases related to prior year tax positions 0.2 0.4 0.3 Decreases related to prior year tax positions — — — Settlements — ( 0.2 ) ( 8.7 ) Lapse of statute of limitations ( 0.4 ) ( 0.2 ) ( 0.3 ) Balance at end of fiscal year $ 1.0 $ 1.2 $ 1.2 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | The following is a summary of stock option activity for fiscal 2023: Number of Options Weighted-Average Exercise Price Per Option Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) Outstanding at beginning of fiscal 2023 2,841,452 $ 7.78 Granted 1,347,695 $ 10.47 Exercised ( 36,740 ) $ 11.03 Cancelled ( 558,483 ) $ 8.88 Outstanding at end of fiscal 2023 3,593,924 $ 8.59 6.9 $ 1.6 Exercisable at end of fiscal 2023 1,626,146 $ 7.73 5.2 $ 0.8 |
Schedule of Assumptions Used in Applying Black-Scholes Pricing Model | The weighted-average fair value of options granted was estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions: Fiscal Year Ended January 28, January 29, January 30, Weighted-average fair value per option $ 3.45 $ 4.02 $ 0.50 Expected volatility rate 49.11 % 48.00 % 41.25 % Risk free interest rate 2.01 % 1.04 % 0.68 % Expected term of options 6.3 years 6.3 years 7.0 years Expected dividend yield 4.2 % 3.3 % 0.0 % |
Summary of Restricted Stock Unit | The following is a summary of restricted stock unit activity for fiscal 2023: Number of Restricted Stock Units Weighted-Average Grant Date Fair Value Unvested at beginning of fiscal 2023 196,283 $ 12.85 Granted 544,514 $ 9.78 Released ( 95,040 ) $ 12.10 Forfeited ( 94,116 ) $ 10.77 Unvested at end of fiscal 2023 551,641 $ 10.30 |
Schedule of Share-Based Compensation, Employee Stock Purchase Plan, Activity [Table Text Block] | The weighted-average fair value of shares issued under the ESPP was estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions: Fiscal Year Ended January 28, Weighted-average fair value per share issued $ 0.68 Expected volatility rate 55.33 % Risk free interest rate 4.11 % Expected term 0.5 years Expected dividend yield 1.7 % |
Summary of Stock-Based Compensation Expense | The following table shows the expense recognized by the Company for stock-based compensation: Fiscal Year Ended January 28, January 29, January 30, (In millions) Stock-based compensation expense $ 7.3 $ 2.5 $ 1.5 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share and Stock-based Awards Excluded from Calculation of Diluted Earnings Per Share | The following table sets forth the reconciliation of the numerator and the denominator of basic and diluted income (loss) per share for fiscal 2023, fiscal 2022 and fiscal 2021: Fiscal Year Ended January 28, January 29, January 30, (In millions except per share data) Net income (loss) $ ( 200.6 ) $ 56.7 $ 212.3 Weighted-average common shares outstanding – basic 40.7 40.8 34.9 Effect of dilutive stock-based awards — 1.3 0.9 Weighted-average common shares outstanding – diluted 40.7 42.1 35.8 Basic earnings (loss) per common share $ ( 4.93 ) $ 1.39 $ 6.08 Diluted earnings (loss) per common share $ ( 4.93 ) $ 1.35 $ 5.93 Antidilutive stock-based awards excluded from diluted calculation 4.6 1.4 1.2 |
Segments and Disaggregated Re_2
Segments and Disaggregated Revenue (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Product Category | The following table shows revenue by product category: Fiscal Year Ended January 28, January 29, January 30, (In millions) Sewing $ 1,009.2 $ 1,091.1 $ 1,399.3 Arts and Crafts and Home Décor 1,171.1 1,291.3 1,313.4 Other 36.6 35.2 49.6 Total $ 2,216.9 $ 2,417.6 $ 2,762.3 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Mar. 19, 2021 USD ($) | Mar. 11, 2021 $ / shares shares | Mar. 03, 2021 | Jan. 28, 2023 USD ($) Segment OperatedStores States | Jan. 29, 2022 USD ($) | Jan. 30, 2021 USD ($) | |
Summary Of Significant Accounting Principles And Policies [Line Items] | ||||||
Number of retail stores | OperatedStores | 833 | |||||
Number of States in which Entity Operates | States | 49 | |||||
Sale of Stock, Price Per Share | $ / shares | $ 12 | |||||
Issuance of common stock, Shares | shares | 5,468,750 | |||||
Stock issued, underwriters option to purchase additional shares | shares | 1,640,625 | |||||
Net proceeds from public offering | $ 76.9 | |||||
Initial public offering cost net of underwriters discount and commission | 5.7 | |||||
Offering costs incurred | 2.7 | |||||
Repayments on revolving credit facility | (460.2) | $ (532.9) | $ (672.7) | |||
Stock split conversion ratio | 85.8808880756715 | |||||
Capitalized of internal use software | 6.8 | 4.7 | 4.1 | |||
Amortization expense | 6.4 | 6.5 | 7.3 | |||
Unamortized of internal use software | $ 17 | 16.6 | ||||
Number of Reporting Units | Segment | 1 | |||||
Number of Reportable Segments | Segment | 1 | |||||
Stores, Utilization of assets and Other facilities, Impairment losses added within SG&A expenses | $ 0 | 0 | 0 | |||
Revenue recognized | 11.5 | 9.3 | 8.3 | |||
Dividends paid | 13.4 | 12.6 | 0 | |||
Advertising Expense | 55.8 | 59.4 | $ 60.6 | |||
Prepaid expenses and other current assets | 1.9 | 1.6 | ||||
LGP | ||||||
Summary Of Significant Accounting Principles And Policies [Line Items] | ||||||
Dividends paid | $ 9.2 | $ 8.3 | ||||
Buildings and Building/Land Improvements | Maximum | ||||||
Summary Of Significant Accounting Principles And Policies [Line Items] | ||||||
Property, Plant and Equipment, Estimated Useful Lives | 40 | |||||
Buildings and Building/Land Improvements | Minimum | ||||||
Summary Of Significant Accounting Principles And Policies [Line Items] | ||||||
Property, Plant and Equipment, Estimated Useful Lives | 10 | |||||
Furniture and Fixtures | Maximum | ||||||
Summary Of Significant Accounting Principles And Policies [Line Items] | ||||||
Property, Plant and Equipment, Estimated Useful Lives | 10 | |||||
Furniture and Fixtures | Minimum | ||||||
Summary Of Significant Accounting Principles And Policies [Line Items] | ||||||
Property, Plant and Equipment, Estimated Useful Lives | 5 | |||||
Software and Computer Equipment | Maximum | ||||||
Summary Of Significant Accounting Principles And Policies [Line Items] | ||||||
Property, Plant and Equipment, Estimated Useful Lives | five | |||||
Software and Computer Equipment | Minimum | ||||||
Summary Of Significant Accounting Principles And Policies [Line Items] | ||||||
Property, Plant and Equipment, Estimated Useful Lives | three | |||||
Leasehold Improvements | Minimum | ||||||
Summary Of Significant Accounting Principles And Policies [Line Items] | ||||||
Property, Plant and Equipment, Estimated Useful Lives | 10 | |||||
Term Loan due 2024 | ||||||
Summary Of Significant Accounting Principles And Policies [Line Items] | ||||||
Repayments on revolving credit facility | $ (72.7) |
Significant Accounting Polici_5
Significant Accounting Policies - Store Pre-Opening and Closing Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Accounting Policies [Abstract] | |||
Store pre-opening costs | $ 16.2 | $ 5.1 | $ 4.1 |
Store closing cost | 5.3 | 1.1 | 1.5 |
Total | $ 21.5 | $ 6.2 | $ 5.6 |
Significant Accounting Polici_6
Significant Accounting Policies - Schedule of Revenue Recognition from Gift Cards (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | ||
Accounting Policies [Abstract] | ||||
Balance at beginning of period | $ 41.4 | $ 37.9 | $ 32.4 | |
Issuance of gift cards | 37.5 | 43.6 | 45.9 | |
Revenue recognized | [1] | (35.4) | (38.9) | (39.2) |
Gift card breakage | (1.8) | (1.2) | (1.2) | |
Balance at end of period | $ 41.7 | $ 41.4 | $ 37.9 | |
[1] Revenue recognized from the beginning liability during fiscal 2023, fiscal 2022 and fiscal 2021 totaled $ 11.5 million , $ 9.3 million and $ 8.3 million , respectively. |
Financing - Summary of Long-ter
Financing - Summary of Long-term Debt (Details) - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 |
Debt Instrument [Line Items] | ||
Total debt | $ 990.6 | $ 794.3 |
Less unamortized discount and debt costs | (7.8) | (8.9) |
Total debt, net | 982.8 | 785.4 |
Less current portion of debt | (6.8) | (6.8) |
Long-term debt, net | 976 | 778.6 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 324 | |
ABL Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 324 | 121 |
Term Loan due 2028 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 666.6 | $ 673.3 |
Financing - Additional Informat
Financing - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||||
Dec. 22, 2021 | Jul. 07, 2021 | Jul. 06, 2021 | Mar. 19, 2021 | May 21, 2018 | Oct. 21, 2016 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | Nov. 25, 2020 | |
Debt Instrument [Line Items] | ||||||||||
Term loan payments | $ 6.8 | $ 708 | $ 2.3 | |||||||
Extinguishment cost | 0 | (3.3) | 155.1 | |||||||
Gain (Loss) on Extinguishment of Debt | 0 | (3.3) | $ 155.1 | |||||||
Total debt | $ 990.6 | 794.3 | ||||||||
Debt covenant description | The covenants contained in the credit agreements restrict JOANN’s ability to pay dividends or make other distributions; accordingly, any dividends may only be made in accordance with such covenants. Among other restrictions, the credit agreements permit the public parent company to pay dividends on its common stock in amounts not to exceed the greater of 6% per annum of the net proceeds received by or contributed to Jo-Ann Stores, LLC from any such public offering of common stock of Jo-Ann Stores, LLC or its direct or indirect parent company, or 7% of Market Capitalization (as defined in the credit agreements). So long as there is no event of default, the credit agreements also allow dividends in amounts up to $100 million, which amount can increase if certain other conditions are satisfied, including if JOANN’s leverage does not exceed certain thresholds. Additionally, the ABL Facility allows for unlimited dividends, so long as there is no event of default and the Company’s excess availability after giving pro forma effect for the thirty-day period immediately preceding such payment shall be greater than (a) the greater of 12.5% of the maximum credit and $40 million and the consolidated fixed charge coverage ratio shall be greater than or equal to 1.0 to 1.0 or (b) 17.5% of the maximum credit calculated. | |||||||||
Percentage of maximum credit | 17.50% | |||||||||
Percentage Of Maximum Credit excess capacity | 12.50% | |||||||||
Credit Agreement Market Capitalization Percentage | 7% | |||||||||
Dividend period | thirty-day period | |||||||||
Maximum credit fixed charge | $ 40 | |||||||||
Amended Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Maturity Date | Nov. 25, 2025 | |||||||||
Second Amendment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 500 | |||||||||
Debt Instrument, Maturity Date | Dec. 22, 2026 | |||||||||
Total facility | $ 650 | |||||||||
Unused commitment fee percentage | 0.20% | |||||||||
Debt and Lease Obligation | $ 150 | |||||||||
Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed charge coverage ratio | 1% | |||||||||
Common stock dividend rate percentage | 6% | |||||||||
Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed charge coverage ratio | 1% | |||||||||
Amount available for dividend | $ 100 | |||||||||
Minimum | Second Amendment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Increments | $ 20 | |||||||||
Senior Notes | Amended Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Secured debt | $ 500 | |||||||||
Base Rate Loans | Second Amendment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Base Rate Loans Additional Margin | 0.50% | |||||||||
Percentage of maximum credit | 40% | |||||||||
Percentage Of Maximum Credit excess capacity | 0.25% | |||||||||
Base Rate Loans | Second Amendment | Excess Capacity | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage Of Maximum Credit excess capacity | 40% | |||||||||
Eurodollar Rate Loans | Second Amendment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Eurodollar Rate Loan Additional Margin Percentage | 1.50% | |||||||||
Percentage of maximum credit | 40% | |||||||||
Percentage Of Maximum Credit excess capacity | 1.25% | |||||||||
Eurodollar Rate Loans | Second Amendment | Excess Capacity | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage Of Maximum Credit excess capacity | 40% | |||||||||
Term Loan Due 2023 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Deferred Finance Costs Gross | $ 3.1 | |||||||||
Total debt | $ 725 | |||||||||
Percentage Of Face Value At Which Debt Is Issued | 98% | |||||||||
Term Loan due 2024 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Term loan payments | $ 72.7 | |||||||||
Deferred Finance Costs Gross | $ 0.9 | |||||||||
Total debt | $ 225 | |||||||||
Percentage Of Face Value At Which Debt Is Issued | 98.50% | |||||||||
Term Loan due 2028 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fees capitalized | 3.8 | |||||||||
Debt Related Commitment Fees and Debt Issuance Costs | 6.8 | |||||||||
Debt Instrument, Unamortized Discount | $ 3.4 | |||||||||
Term Loan due 2028 | Second Amendment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Maturity Date | Jul. 07, 2028 | |||||||||
Total debt | $ 675 | |||||||||
Percentage Of Face Value At Which Debt Is Issued | 99.50% | |||||||||
Term Loan due 2028 | LIBOR | Second Amendment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Additional margin interest rate | 0.75% | 1% | ||||||||
Term Loan due 2028 | Base Rate | Second Amendment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable interest rates | 3.75% | 4% | ||||||||
Term Loan due 2028 | Eurodollar | Second Amendment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable interest rates | 4.75% | 5% | ||||||||
Term Loan due 2028 | Reduction of Debt and set up to Amortize Over Life of Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Unamortized Discount | $ 3.1 | |||||||||
Term Loan due 2028 | Charged to Earnings | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Unamortized Discount | $ 0.3 | |||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Initiation Date | Oct. 21, 2016 | |||||||||
Debt Instrument, Face Amount | $ 400 | |||||||||
Debt Instrument, Maturity Date | Oct. 20, 2021 | |||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 87.2 | 239.6 | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 324 | 121 | ||||||||
Debt and Lease Obligation | $ 16.5 | $ 18.1 | ||||||||
Debt, Weighted Average Interest Rate | 3.82% | 2.75% | ||||||||
Total debt | $ 324 | |||||||||
Revolving Credit Facility | Term Loan due 2028 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, Weighted Average Interest Rate | 7.16% | 5.58% |
Financing - Schedule of Maturit
Financing - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 |
Debt Instrument [Line Items] | ||
2024 | $ 8.4 | |
2025 | 6.8 | |
2026 | 6.7 | |
2027 | 329.1 | |
Thereafter | 639.6 | |
Fixed minimum debt principal maturities | 990.6 | $ 794.3 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 324 | |
Thereafter | 0 | |
Fixed minimum debt principal maturities | 324 | |
Term Loan due 2028 | ||
Debt Instrument [Line Items] | ||
2024 | 8.4 | |
2025 | 6.8 | |
2026 | 6.7 | |
2027 | 5.1 | |
Thereafter | 639.6 | |
Fixed minimum debt principal maturities | $ 666.6 | $ 673.3 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | May 31, 2022 | Aug. 31, 2021 | Jul. 31, 2018 | |
Derivative Instruments Gain Loss [Line Items] | ||||||
Gain recognized in Other Comprehensive Income on derivatives, gross of income taxes | $ 8.7 | $ 2.8 | $ 0.7 | |||
Interest Rate Cap | US Bank | ||||||
Derivative Instruments Gain Loss [Line Items] | ||||||
Derivative start date | Oct. 23, 2018 | |||||
Derivative maturity date | Oct. 23, 2021 | |||||
Gain recognized in Other Comprehensive Income on derivatives, gross of income taxes | $ 681.4 | |||||
Amortized notional amount | $ 2.2 | |||||
Interest Rate Swap | ||||||
Derivative Instruments Gain Loss [Line Items] | ||||||
Fair value of outstanding derivative | 11.1 | |||||
Gain recognized in Other Comprehensive Income on derivatives, gross of income taxes | 8.5 | |||||
Interest Rate Swap | US Bank | ||||||
Derivative Instruments Gain Loss [Line Items] | ||||||
Derivative start date | Oct. 26, 2023 | |||||
Derivative maturity date | Oct. 26, 2025 | |||||
Amortized notional amount | $ 200 | |||||
Second Interest Rate Swap [Member] | ||||||
Derivative Instruments Gain Loss [Line Items] | ||||||
Fair value of outstanding derivative | $ 2.6 | |||||
Second Interest Rate Swap [Member] | US Bank | ||||||
Derivative Instruments Gain Loss [Line Items] | ||||||
Derivative start date | Jul. 26, 2023 | |||||
Derivative maturity date | Jan. 26, 2026 | |||||
Amortized notional amount | $ 250 | |||||
LIBOR | Interest Rate Cap | US Bank | ||||||
Derivative Instruments Gain Loss [Line Items] | ||||||
Derivative floor rate of interest | 3.50% | |||||
LIBOR | Interest Rate Swap | US Bank | ||||||
Derivative Instruments Gain Loss [Line Items] | ||||||
Derivative floor rate of interest | 0.75% | |||||
Derivative fixed rate of interest | 1.44% | |||||
LIBOR | Second Interest Rate Swap [Member] | US Bank | ||||||
Derivative Instruments Gain Loss [Line Items] | ||||||
Derivative floor rate of interest | 0.75% | |||||
Derivative fixed rate of interest | 3.37% |
Derivative Instruments - Summer
Derivative Instruments - Summery Of Impacts of the Company's derivative instruments on the accompanying Consolidated Financial Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain recognized in Other Comprehensive Income on derivatives, gross of income taxes | $ 8.7 | $ 2.8 | $ 0.7 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Comprehensive Income (Loss), Net of Tax, Attributable to Parent | ||
Interest rate swap - $200M [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain recognized in Other Comprehensive Income on derivatives, gross of income taxes | $ 6.1 | 2.4 | |
Interest rate swap - $250M [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain recognized in Other Comprehensive Income on derivatives, gross of income taxes | $ 2.6 | ||
Interest rate swap - $681M [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain recognized in Other Comprehensive Income on derivatives, gross of income taxes | $ 0.4 | $ 0.7 |
Fair value Measurement - Summar
Fair value Measurement - Summary of Carrying and fair Value Of Interest Rate Derivatives (Details) - Other Assets - Interest Rate Swap - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate swap - current | $ 3.7 | |
Interest rate swap - long term | $ 7.4 | $ 2.4 |
Fair value Measurement -Summary
Fair value Measurement -Summary of Carrying and Fair Values of Term Loans (Details) - Term Loan due 2028 - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 | |
Carrying Value | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Carrying and fair values of term loans | [1] | $ 658.8 | $ 664.3 |
Fair Value | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Carrying and fair values of term loans | [1] | $ 374.7 | $ 656 |
[1] Net of deferred financing costs and original issue discount |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 12 Months Ended | |
Jan. 28, 2023 USD ($) Lease Facilities | Jan. 29, 2022 USD ($) | |
Operating Leased Assets [Line Items] | ||
First operating lease expiry date | 2026-10 | |
Lease Not yet Commenced, Future Minimum Lease Payments | $ 20.8 | |
Lessee, Operating Lease, Renewal Term | 10 years | |
Number of Operating Leases | Lease | 5 | |
Lease initial term | 10 years | |
Finance Lease, Amortization Expenses | $ 10.5 | $ 8.8 |
Finance Lease, Interest Expense | $ 0.9 | $ 0.7 |
Number of Finance leases | Lease | 0 | |
Maximum | ||
Operating Leased Assets [Line Items] | ||
Lessee, Operating Lease, Renewal Term | 25 years | |
West Jefferson And Ohio | ||
Operating Leased Assets [Line Items] | ||
First operating lease expiry date | 2028-06 | |
Lessee, Operating Lease, Renewal Term | 18 years | |
Opelika And Alabama | ||
Operating Leased Assets [Line Items] | ||
First operating lease expiry date | 2041-06 | |
Lessee, Operating Lease, Renewal Term | 20 years | |
Visalia And California | ||
Operating Leased Assets [Line Items] | ||
Second lease expiration date | 2024-05 | |
Lessee, Operating Lease, Renewal Term | 40 years | |
Number of facilities | Facilities | 2 |
Leases - Schedule of Operating
Leases - Schedule of Operating Leases Associated Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | ||
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of operating lease liabilities | [1] | $ 236.8 | $ 246.7 |
Operating lease assets obtained in exchange for new operating lease liabilities | 86.9 | 120.3 | |
Operating lease cost | [2] | 225.5 | 217.5 |
Variable lease cost | [2] | $ 59.2 | $ 59.5 |
Weighted-average remaining lease term | 6 years 1 month 13 days | 6 years 1 month 9 days | |
Weighted-average discount rate | 6.54% | 5.91% | |
[1] Reflected as operating cash outflows in the accompanying Consolidated Statements of Cash Flows. Reflected as SG&A expenses in the accompanying Consolidated Statements of Comprehensive Income (Loss) |
Leases - Information related to
Leases - Information related to the Company's financing leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | ||
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of financing lease liabilities | [1] | $ 11.3 | $ 8.4 |
Financing lease assets obtained in exchange for new financing lease liabilities | 5 | 11.9 | |
Financing lease cost | [2] | $ 11.4 | $ 9.5 |
Weighted-average remaining lease term | 2 years 8 months 15 days | 1 year 9 months 21 days | |
Weighted-average discount rate | 5.95% | 3.75% | |
[1] Reflected as operating or financing cash outflows in the accompanying Consolidated Statements of Cash Flows. Reflected as depreciation and amortization or interest expense, net in the accompanying Consolidated Statements of Comprehensive Income (Loss) |
Leases - Schedule of Leases Cla
Leases - Schedule of Leases Classified as Finance Leases presented in Balance sheet (Details) - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 |
Assets: | ||
Finance lease assets, net | $ 14.4 | $ 15.2 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Liabilities | ||
Current portion of finance lease liabilities | $ 8.1 | $ 9.2 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Long-term portion of finance lease liabilities | $ 8.2 | $ 7.8 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments Under non-cancelable Operating and financing Leases (Details) $ in Millions | Jan. 28, 2023 USD ($) |
Leases [Abstract] | |
Operating Leases, 2024 | $ 228.7 |
Operating Leases, 2025 | 207.1 |
Operating Leases, 2026 | 175.5 |
Operating Leases, 2027 | 136.4 |
Operating Leases, 2028 | 99 |
Operating Leases, Thereafter | 250.3 |
Operating Leases, Total Lease payments | 1,097 |
Operating Leases, Less: imputed interest | (212.2) |
Operating lease liabilities | 884.8 |
Finance Leases, 2024 | 8.9 |
Finance Leases, 2025 | 3.8 |
Finance Leases, 2026 | 2.3 |
Finance Leases, 2027 | 2.3 |
Finance Leases, 2028 | 0.7 |
Finance Leases, Thereafter | 0 |
Finance Leases, Total Lease payments | 18 |
Finance Leases, Less: imputed interest | (1.7) |
Finance Leases, Present value of lease liabilities | (16.3) |
2024 | 237.6 |
2025 | 210.9 |
2026 | 177.8 |
2027 | 138.7 |
2028 | 99.7 |
Thereafter | 250.3 |
Total Lease payments | 1,115 |
Less: imputed interest | (213.9) |
Present value of lease liabilities | $ 901.1 |
Accrued Expenses and Other Lo_3
Accrued Expenses and Other Long-Term Liabilities - Additional Information (Details) - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 |
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Total discounted insurance liabilities | $ 19 | $ 25.7 |
Discount rate | 3.80% | 0.40% |
Accrued Expenses and Other Lo_4
Accrued Expenses and Other Long-Term Liabilities - Schedule of Accrued Expenses (Details) - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 |
Accrued Liabilities and Other Liabilities [Abstract] | ||||
Accrued taxes | $ 24.6 | $ 23.6 | ||
Accrued compensation and payroll taxes | 22.5 | 39.7 | ||
Accrued interest | 1.6 | 0.6 | ||
Wrokers' compensation and general liability insurance | 6.8 | 9.9 | ||
Occupancy and rent-related liabilities (a) | 2.3 | 2.1 | ||
Customer gift cards | 41.7 | 41.4 | $ 37.9 | $ 32.4 |
Capital expenditures payable | 2.6 | 4.7 | ||
Finance lease obligations | 8.1 | 9.2 | ||
Other | 9 | 11.2 | ||
Total accrued expenses | $ 119.2 | $ 142.4 |
Accrued Expenses and Other Lo_5
Accrued Expenses and Other Long-Term Liabilities - Schedule Of Other Long Term Liabilities (Details) - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Workers' compensation and general liability insurance | $ 12.2 | $ 15.8 |
Finance lease obligations | 8.2 | 7.8 |
Other | 8.3 | 12.7 |
Total other long-term liabilities | $ 28.7 | $ 36.3 |
Accrued Expenses and Other Lo_6
Accrued Expenses and Other Long-Term Liabilities - Schedule of Estimated Future Long Term Insurance liabilities (Details) - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
2025 | $ 3.5 | |
2026 | 2.9 | |
2027 | 2.3 | |
2028 | 1.3 | |
2029 | 0.7 | |
Thereafter | 1.5 | |
Total long-term workers' compensation and general liability insurance | $ 12.2 | $ 15.8 |
Property, Equipment and Lease_3
Property, Equipment and Leasehold Improvements - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 |
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 999.7 | $ 940.1 |
Less accumulated depreciation and amortization | (711.9) | (683.3) |
Property, equipment and leasehold improvements, net | 287.8 | 256.8 |
Land and Buildings | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 53 | 52.5 |
Furniture, Fixtures and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 378.6 | 366.9 |
Purchased Software and Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 110 | 110.8 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 421.9 | 374.6 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2.6 | 6.6 |
Finance Lease Assets | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 33.6 | $ 28.7 |
Property, Equipment and Lease_4
Property, Equipment and Leasehold Improvements - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 71.9 | $ 73.2 | $ 73.1 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||
Goodwill, gross | $ 643.8 | $ 643.8 |
Accumulated impairment | (481.8) | (481.8) |
Goodwill, net | $ 162 | $ 162 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Carrying Amount and Accumulated Amortization of Identifiable Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | ||
Finite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 355.4 | $ 445.1 | |
Accumulated Amortization | 83.3 | 74.8 | |
JOANN Trade Name | |||
Finite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | [1] | 230 | 325 |
Joann.com Domain Name | |||
Finite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 10 | 10 | |
Creativebug Trade Name | |||
Finite Lived Intangible Assets [Line Items] | |||
Estimated life in years | 10 years | ||
Gross Carrying Amount | $ 0.1 | 0.1 | |
Accumulated Amortization | $ 0.1 | ||
Technology | |||
Finite Lived Intangible Assets [Line Items] | |||
Estimated life in years | 3 years | ||
Gross Carrying Amount | $ 5.3 | ||
Accumulated Amortization | $ 1.6 | ||
Customer Relationships | |||
Finite Lived Intangible Assets [Line Items] | |||
Estimated life in years | 16 years | ||
Gross Carrying Amount | $ 110 | 110 | |
Accumulated Amortization | $ 81.6 | $ 74.8 | |
[1] The gross carrying value of the JOANN trade name is reflected net of $ 100.0 million of accumulated impairment charges as of January 28, 2023. |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Carrying Amount and Accumulated Amortization of Identifiable Intangible Assets (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Jan. 28, 2023 USD ($) | |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |
Accumulated impairment charges | $ 100 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Mar. 04, 2022 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | Oct. 30, 2022 | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||
Weighted average cost of capital, percentage | 14.70% | ||||
Pre-tax impairment charge | $ 95 | ||||
Amortization of Intangible Assets | $ 8.5 | $ 6.9 | $ 6.9 | ||
Weighted average amortization period of amortizable intangible assets | 3 years 10 months 24 days | 5 years 1 month 6 days | |||
Goodwill impairment, percentage | 10% | ||||
Equity Investment [Member] | |||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||
Ownership percentage | 12.30% | ||||
WeaveUp, Inc [Member] | |||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||
Purchased price of equity interest | $ 4.3 | ||||
Acquisition related costs | 0.1 | ||||
Decrease in equity investment fair value | 1 | ||||
Loss due to decrease in equity investment fair value | 1 | ||||
Acquisition of intangible asset | $ 5.3 | ||||
Estimated life in years | 3 years |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets, Remaining Amortization Expense (Details) $ in Millions | Jan. 28, 2023 USD ($) |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |
2024 | $ 8.7 |
2025 | 8.7 |
2026 | 7 |
2027 | 6.9 |
2028 | 0.8 |
Total | $ 32.1 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Current: | |||
Federal | $ (1.1) | $ 11.7 | $ 18.9 |
State and local | 0.9 | 1.7 | 13 |
Current income taxes | (0.2) | 13.4 | 31.9 |
Deferred: | |||
Federal | (54.7) | 0.1 | (1.8) |
State and local | (18.3) | (0.5) | (2.1) |
Deferred income taxes | (73) | (0.4) | (3.9) |
Income tax provision (benefit) | $ (73.2) | $ 13 | $ 28 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax provision (benefit) at the statutory rate | $ (57) | $ 14.6 | $ 50.5 |
Effect of: | |||
Changes in valuation allowances | (1.2) | (0.4) | (25.5) |
State and local taxes, net of federal benefit | (13.1) | 1.7 | 12.8 |
Revaluation of federal NOL carryback | (4.8) | ||
Officers' life insurance | (1.4) | (1.3) | (0.4) |
Uncertain tax positions (inclusive of penalties and interest) | (0.2) | 0.1 | (0.5) |
Federal general business credits | (1.4) | (1) | (0.8) |
Revaluation of deferred tax liability due to state tax law changes | (1) | (0.2) | |
Other, net | 1.1 | 0.3 | (3.1) |
Income tax provision (benefit) | $ (73.2) | $ 13 | $ 28 |
Federal income tax provision (benefit) at the statutory rate | 21% | 21% | 21% |
Effect of: | |||
Changes in valuation allowances | 0.40% | (0.60%) | (10.60%) |
State and local taxes, net of federal benefit | 4.80% | 2.40% | 5.30% |
Revaluation of federal NOL carryback | (2.00%) | ||
Officers' life insurance | 0.50% | (1.90%) | (0.20%) |
Uncertain tax positions (inclusive of penalties and interest) | 0.10% | 0.10% | (0.20%) |
Federal general business credits | 0.50% | (1.40%) | (0.30%) |
Revaluation of deferred tax liability due to state tax law changes percent | (1.40%) | (0.10%) | |
Other, net | (0.30%) | 0.50% | (1.20%) |
Income tax provision | 27% | 18.70% | 11.70% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Income Taxes [Line Items] | ||||
Federal income tax provision (benefit) at the statutory rate | 21% | 21% | 21% | |
Effective income tax rate | 27% | 18.70% | 11.70% | |
Corporate income tax rate | 35% | |||
Deferred Tax Assets, Valuation Allowance | $ 3.7 | $ 3.9 | ||
Net operating loss carryforwards | 24.9 | |||
Tax credits | 1.9 | 2.1 | ||
Valuation allowance related to state tax credits. | 1.9 | |||
Unrecognized tax benefits | 1 | 1.2 | $ 1.2 | $ 9.9 |
Unrecognized tax benefits which would affect effective tax rate if recognized | 0.8 | |||
Decrease in uncertain tax benefit | 0.1 | |||
Interest and penalties accrued | 0.1 | 0.1 | ||
Operating Income (Loss) | (208.6) | $ 99.7 | 154.2 | |
2015-2018 Tax Year | ||||
Income Taxes [Line Items] | ||||
Unrecognized tax benefits | $ 8.7 | |||
Federal | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 127.1 | |||
State and Local Jurisdiction [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 128.3 | |||
Tax credits | 1.9 | |||
State and Local Jurisdiction [Member] | 2024 through fiscal 2043 | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 122.3 |
Income Taxes - Schedule of Co_2
Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Jan. 28, 2023 | Jan. 29, 2022 |
Deferred tax assets: | ||
Lease obligations | $ 225.2 | $ 231.1 |
Federal net operating loss carryforwards | 26.7 | 1 |
Interest expense carryforward | 15.1 | 1.8 |
Inventory items | 9.3 | 9.3 |
Team member benefits | 9.1 | 11.6 |
State net operating loss carryforwards | 6.9 | 0.4 |
State credits | 1.9 | 2.1 |
Other | 9.5 | 5.3 |
Subtotal | 303.7 | 262.6 |
Valuation allowances | (3.7) | (3.9) |
Total deferred tax assets | 300 | 258.7 |
Deferred tax liabilities: | ||
Depreciation | (50.3) | (43.7) |
Identified intangibles | (68.3) | (94.4) |
Operating lease assets | (198.3) | (208.3) |
Total deferred tax liabilities | (316.9) | (346.4) |
Net deferred taxes | $ (16.9) | $ (87.7) |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of fiscal year | $ 1.2 | $ 1.2 | $ 9.9 |
Increases related to prior year tax positions | 0.2 | 0.4 | 0.3 |
Settlements | (0.2) | (8.7) | |
Lapse of statute of limitations | (0.4) | (0.2) | (0.3) |
Balance at end of fiscal year | $ 1 | $ 1.2 | $ 1.2 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of Options, Granted | 1,347,695 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercised | $ 0.1 | $ 3 | |
Exercise of stock options, Shares | 36,740 | 0 | |
Cash proceeds from the exercise of stock option awards | $ 0.4 | 1.8 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period, cash proceeds | 0 | ||
Unrecognized compensation cost | $ 5.9 | ||
Expected weighted average period for recognition of compensation cost | 1 year 10 months 24 days | ||
Stock option compensation expense | $ 7.3 | $ 2.5 | $ 1.5 |
Common Stock, Shares, Issued | 44.1 | 44.1 | |
ESPP [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Purchase price of shares by employees | 85% | ||
Common stock reserved for future issuance | 849,166 | ||
Common Stock, Shares, Issued | 350,834 | ||
Share Price | $ 3.64 | ||
Proceeds of common stock | $ 1.3 | ||
loss upon reissuance | $ 1.8 | ||
2012 Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of Options, Granted | 0 | ||
Stock option compensation expense | $ 2.5 | ||
2021 Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Stock option available to issued | 2,780,563 | ||
2021 Plan [Member] | Employees and Director [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Annual increase in shares outstanding, Percentage | 4% | ||
Common stock reserved for future issuance | 2,000,000 | ||
Restricted Stock Units [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Total fair value of shares vested | 1,200,000 | 0 | 0 |
Share-Based Payment Arrangement, Option [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Option expiry term | 10 years | ||
Option description | Stock options granted under the 2012 Plan vest over five years at 40% after the first two years and 20% each year thereafter. Stock options granted under the 2021 Plan have a graded vesting period of four years whereby one-fourth of the awards vest on each of the anniversaries of the grant date. | ||
Share-Based Payment Arrangement, Option [Member] | 2012 Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Share-Based Payment Arrangement, Option [Member] | 2012 Plan [Member] | Share-Based Payment Arrangement, Tranche One [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 40% | ||
Share-Based Payment Arrangement, Option [Member] | 2012 Plan [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 20% | ||
Share-Based Payment Arrangement, Option [Member] | 2021 Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Vesting period | 4 years |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Jan. 28, 2023 | Jan. 30, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of Options, Outstanding, Beginning balance | 2,841,452 | |
Number of Options, Granted | 1,347,695 | |
Number of Options, Exercised | (36,740) | 0 |
Number of Options, Cancelled | (558,483) | |
Number of Options, Outstanding, Ending balance | 3,593,924 | |
Number of Options, Exercisable | 1,626,146 | |
Weighted Average Exercise Price per Share, Outstanding, Beginning balance | $ 7.78 | |
Weighted Average Exercise Price per Share, Granted | 10.47 | |
Weighted Average Exercise Price per Share, Exercised | 11.03 | |
Weighted Average Exercise Price per Share, Cancelled | 8.88 | |
Weighted Average Exercise Price per Share, Outstanding, Ending balance | 8.59 | |
Weighted Average Exercise Price per Share, Exercisable | $ 7.73 | |
Weighted Average Remaining Contractual Term (In Years), Outstanding | 6 years 10 months 24 days | |
Weighted Average Remaining Contractual Term (In Years), Exercisable | 5 years 2 months 12 days | |
Aggregate Intrinsic Value, Outstanding | $ 1.6 | |
Aggregate Intrinsic Value, Exercisable | $ 0.8 |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule of Assumptions Used in Applying Black-Scholes Pricing Model (Details) - $ / shares | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Employee Stock Option [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Weighted-average fair value per option | $ 3.45 | $ 4.02 | $ 0.50 |
Expected volatility rate | 49.11% | 48% | 41.25% |
Risk free interest rate | 2.01% | 1.04% | 0.68% |
Expected term of options | 6 years 3 months 18 days | 6 years 3 months 18 days | 7 years |
Expected dividend yield | 4.20% | 3.30% | 0% |
ESPP [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Weighted-average fair value per option | $ 0.68 | ||
Expected volatility rate | 55.33% | ||
Risk free interest rate | 4.11% | ||
Expected term of options | 6 months | ||
Expected dividend yield | 1.70% |
Stock Based Compensation - Su_2
Stock Based Compensation - Summary of Restricted Stock Units (Details) - Restricted Stock Units [Member] | 12 Months Ended |
Jan. 28, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of Outstanding Shares, Beginning Balance | shares | 196,283 |
Number of Shares, Granted | shares | 544,514 |
Number of shares, released | shares | (95,040) |
Number of Shares, Forfeited | shares | (94,116) |
Number of Outstanding Shares, Ending Balance | shares | 551,641 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 12.85 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 9.78 |
Weighted-Average Grant Date Fair Value, released | $ / shares | 12.10 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 10.77 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 10.30 |
Stock Based Compensation - Su_3
Stock Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Stock option compensation expense | $ 7.3 | $ 2.5 | $ 1.5 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share and Stock-based Awards Excluded from Calculation of Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Earnings Per Share [Abstract] | |||
Net income (loss) | $ (200.6) | $ 56.7 | $ 212.3 |
Basic | 40.7 | 40.8 | 34.9 |
Effect of dilutive stock based awards | 0 | 1.3 | 0.9 |
Diluted | 40.7 | 42.1 | 35.8 |
Basic earnings (loss) per common share | $ (4.93) | $ 1.39 | $ 6.08 |
Diluted earnings (loss) per common share | $ (4.93) | $ 1.35 | $ 5.93 |
Antidilutive stock-based awards excluded from diluted calculation | 4.6 | 1.4 | 1.2 |
Segments and Disaggregated Re_3
Segments and Disaggregated Revenue - Additional Information (Details) | 12 Months Ended |
Jan. 28, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Number of reportable segment | 1 |
Segments and Disaggregated Re_4
Segments and Disaggregated Revenue - Summary of Revenue by Product Category (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net sales | $ 2,216.9 | $ 2,417.6 | $ 2,762.3 |
Sewing | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net sales | 1,009.2 | 1,091.1 | 1,399.3 |
Arts And Crafts And Home Decor | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net sales | 1,171.1 | 1,291.3 | 1,313.4 |
Other | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net sales | $ 36.6 | $ 35.2 | $ 49.6 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | Jan. 28, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 17.8 |
2024 | 17.8 |
2025 | $ 17.8 |
Savings Plan Retirement and P_2
Savings Plan Retirement and Postretirement Benefits - Additional information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Retirement Benefits [Abstract] | |||
Annual compensation, percentage | 50% | ||
Matching contribution, percentage | 50% | ||
Contribution percentage of the employee's annual compensation | 6% | ||
Matching contribution | $ 2.6 | $ 2.9 | $ 2.6 |
Gain on Sale and Leaseback of_2
Gain on Sale and Leaseback of Distribution Center - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jul. 28, 2022 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | Jul. 30, 2022 | |
Sale Leaseback Transaction [Line Items] | |||||
Sale and leaseback transaction, gain (loss), net | $ 0 | $ 24.5 | $ 0 | ||
Lease initial term | 10 years | ||||
Operating lease liabilities | $ 884.8 | ||||
Operating lease assets | $ 778.4 | $ 818 | |||
Operating lease, weighted average discount rate, percent | 6.54% | 5.91% | |||
Sale Leaseback of Distribution Center | |||||
Sale Leaseback Transaction [Line Items] | |||||
Sale leaseback transaction, sale price | $ 48.1 | ||||
Sale and leaseback transaction, gain (loss), net | $ 24.5 | ||||
Lease initial term | 20 years | ||||
Lease extension option description | 10-year extension options | ||||
Operating lease liabilities | $ 37.5 | ||||
Operating lease assets | $ 37.5 | ||||
Operating lease, weighted average discount rate, percent | 6.28% |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - Subsequent Event [Member] - Third Amendment [Member] $ in Millions | Mar. 10, 2023 USD ($) |
Subsequent Event [Line Items] | |
Series of FILO Loans Amount | $ 100 |
Debt Instrument, Maturity Date | Dec. 22, 2026 |
SOFR Floor rate | 1.50% |
Additional margin interest rate | 2% |
FILO Loans financing rate | 9.75% |
Floor Rate | 0% |
SOFR credit spread adjustment rate | 0.10% |