Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 28, 2023 | Nov. 30, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 28, 2023 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --02-03 | |
Trading Symbol | JOAN | |
Entity Registrant Name | JOANN Inc. | |
Entity Central Index Key | 0001834585 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-40204 | |
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 $0.01 per share | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 41,911,651 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Current assets: | |||
Cash and cash equivalents | $ 28.3 | $ 20.2 | $ 27.5 |
Inventories | 679.6 | 584.1 | 747 |
Prepaid expenses and other current assets | 82.4 | 38.6 | 79.6 |
Total current assets | 790.3 | 642.9 | 854.1 |
Property, equipment and leasehold improvements, net | 238.7 | 287.8 | 295.8 |
Operating lease assets | 760.2 | 778.4 | 802.6 |
Goodwill, net | 162 | 162 | 162 |
Intangible assets, net | 263.9 | 272.1 | 369.3 |
Other assets | 42.6 | 37.6 | 40.9 |
Total assets | 2,257.7 | 2,180.8 | 2,524.7 |
Current liabilities: | |||
Accounts payable | 262.7 | 197.5 | 270.3 |
Accrued expenses | 109.2 | 119.2 | 123.4 |
Current portion of operating lease liabilities | 175 | 177.5 | 162.4 |
Current portion of long-term debt | 6.8 | 6.8 | 6.8 |
Total current liabilities | 553.7 | 501 | 562.9 |
Long-term debt, net | 1,148.2 | 976 | 1,062.4 |
Long-term operating lease liabilities | 692 | 707.3 | 735.5 |
Long-term deferred income taxes | 20.8 | 16.9 | 89.3 |
Other long-term liabilities | 26 | 28.7 | 31.3 |
Shareholders' equity (deficit): | |||
Common stock, stated value $0.01 per share; 200.0 million authorized; issued 44.1 million shares at October 28, 2023, October 29, 2022 and January 28, 2023 | 0.4 | 0.4 | 0.4 |
Additional paid-in capital | 207.3 | 208 | 208.4 |
Retained (deficit) | (388.3) | (239.2) | (148.1) |
Accumulated other comprehensive income | 16.6 | 8.3 | 11.4 |
Treasury stock at cost; 2.2 million shares at October 28, 2023, 3.3 million shares at October 29, 2022 and 3.0 million shares at January 28, 2023 | (19) | (26.6) | (28.8) |
Total shareholders' equity (deficit) | (183) | (49.1) | 43.3 |
Total liabilities and shareholders' equity (deficit) | $ 2,257.7 | $ 2,180.8 | $ 2,524.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Statement of Financial Position [Abstract] | |||
Common stock, stated value | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 |
Common stock, shares issued | 44,100,000 | 44,100,000 | 44,100,000 |
Treasury stock shares | 2,200,000 | 3,000,000 | 3,300,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 539.8 | $ 562.8 | $ 1,471.7 | $ 1,524.1 |
Cost of sales | 257.7 | 281.8 | 708.6 | 787.5 |
Selling, general and administrative expenses | 273.4 | 269 | 806.2 | 786.6 |
Depreciation and amortization | 22.4 | 19.9 | 61.6 | 59.9 |
Intangible asset impairment | 1.7 | 0 | 1.7 | 0 |
Operating (loss) | (15.4) | (7.9) | (106.4) | (109.9) |
Interest expense, net | 28.4 | 18.1 | 80.5 | 42.5 |
Investment remeasurement | 0 | (2) | 0 | (1) |
Gain on sale leaseback | (12.1) | 0 | (12.1) | 0 |
(Loss) before income taxes | (31.7) | (24) | (174.8) | (151.4) |
Income tax (benefit) | (10.9) | (6.5) | (30.2) | (41.9) |
Loss from equity method investments | 0.8 | 0 | 4.5 | 0 |
Net (loss) | (21.6) | (17.5) | (149.1) | (109.5) |
Other comprehensive income (loss): | ||||
Foreign currency translation | (0.1) | (0.1) | 0 | (0.1) |
Cash flow hedges | 1.6 | 13.9 | 11.3 | 13 |
Income tax benefit (provision) on cash flow hedges | (0.4) | (3.5) | (2.9) | (3.3) |
Other comprehensive income | 1.1 | 10.3 | 8.4 | 9.6 |
Comprehensive (loss) | $ (20.5) | $ (7.2) | $ (140.7) | $ (99.9) |
(Loss) per common share: | ||||
Basic | $ (0.51) | $ (0.43) | $ (3.57) | $ (2.69) |
Diluted | $ (0.51) | $ (0.43) | $ (3.57) | $ (2.69) |
Weighted-average common shares outstanding: | ||||
Basic | 42.2 | 40.8 | 41.8 | 40.7 |
Diluted | 42.2 | 40.8 | 41.8 | 40.7 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Net cash provided by (used for) operating activities: | ||
Net (loss) | $ (149.1) | $ (109.5) |
Adjustments to reconcile net (loss) to net cash (used for) operating activities: | ||
Non-cash operating lease expense | 129.9 | 127 |
Depreciation and amortization | 61.6 | 59.9 |
Deferred income taxes | 1.1 | (1.7) |
Stock-based compensation expense | 6.6 | 6.1 |
Amortization of deferred financing costs and original issue discount | 2.6 | 1.5 |
Investment remeasurement | 0 | (1) |
Gain on sale leaseback | (12.1) | 0 |
Loss on disposal and impairment of fixed assets | 8.6 | 0.3 |
Intangible asset impairment | 1.7 | 0 |
Loss on equity method investment | 4.5 | 0 |
Changes in operating assets and liabilities: | ||
(Increase) in inventories | (95.5) | (88.4) |
(Increase) in prepaid expenses and other current assets | (34.7) | (39.3) |
Increase in accounts payable | 65.2 | 16.5 |
(Decrease) in accrued expenses | (4.2) | (16.4) |
(Decrease) in operating lease liabilities | (129.5) | (120.6) |
(Decrease) in other long-term liabilities | (2.9) | (13.1) |
Other, net | (4.7) | 5.1 |
Net cash (used for) operating activities | (150.9) | (173.6) |
Net cash provided by (used for) investing activities: | ||
Capital expenditures | (36.1) | (80.4) |
Proceeds from sale leaseback | 33.2 | 0 |
Other investing activities | (1.6) | (4.3) |
Net cash (used for) investing activities | (4.5) | (84.7) |
Net cash provided by (used for) financing activities: | ||
Term loan payments | (5.1) | (5.1) |
FILO proceeds | 97 | 0 |
Borrowings on revolving credit facility | 555.6 | 544.1 |
Payments on revolving credit facility | (473.1) | (256.1) |
Principal payments on finance lease obligations | (6.1) | (7.1) |
Proceeds from employee stock purchase plan and exercise of stock options | 0.5 | 1.1 |
Payments of taxes related to the net issuance of team member stock awards | (0.1) | (0.1) |
Dividends paid | 0 | (13.4) |
Financing fees paid | (5.2) | 0 |
Net cash provided by financing activities | 163.5 | 263.4 |
Effect of exchange rate changes on cash | 0 | (0.1) |
Net (decrease) in cash and cash equivalents | 8.1 | 5 |
Cash and cash equivalents at beginning of period | 20.2 | 22.5 |
Cash and cash equivalents at end of period | 28.3 | 27.5 |
Cash paid (received) during the period for: | ||
Interest | 77.5 | 39.6 |
Income taxes, net of (refunds) | $ (2.3) | $ (6.6) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained (Deficit) | Accumulated Other Comprehensive Income (Loss) |
Balance at Jan. 29, 2022 | $ 149.8 | $ 0.4 | $ 203.3 | $ (30.8) | $ (24.9) | $ 1.8 |
Balance,Shares at Jan. 29, 2022 | 40,600,000 | 3,500,000 | ||||
Net (loss) | (35.1) | (35.1) | ||||
Other comprehensive income (loss) | 3.5 | 3.5 | ||||
Dividends | (4.5) | (4.5) | ||||
Stock-based compensation | 1 | 1 | ||||
Exercise of stock options | 0.4 | 0.1 | $ 0.3 | |||
Vesting of restricted stock units | (0.1) | (0.7) | $ 0.6 | |||
Vesting of restricted stock units, Shares | 100,000 | (100,000) | ||||
Balance at Apr. 30, 2022 | 115 | $ 0.4 | 203.7 | $ (29.9) | (64.5) | 5.3 |
Balance,Shares at Apr. 30, 2022 | 40,700,000 | 3,400,000 | ||||
Balance at Jan. 29, 2022 | 149.8 | $ 0.4 | 203.3 | $ (30.8) | (24.9) | 1.8 |
Balance,Shares at Jan. 29, 2022 | 40,600,000 | 3,500,000 | ||||
Net (loss) | (109.5) | |||||
Balance at Oct. 29, 2022 | 43.3 | $ 0.4 | 208.4 | $ (28.8) | (148.1) | 11.4 |
Balance,Shares at Oct. 29, 2022 | 40,800,000 | 3,300,000 | ||||
Balance at Apr. 30, 2022 | 115 | $ 0.4 | 203.7 | $ (29.9) | (64.5) | 5.3 |
Balance,Shares at Apr. 30, 2022 | 40,700,000 | 3,400,000 | ||||
Net (loss) | (56.9) | (56.9) | ||||
Other comprehensive income (loss) | (4.2) | (4.2) | ||||
Dividends | (4.6) | (4.6) | ||||
Stock-based compensation | 1.2 | 1.2 | ||||
Vesting of restricted stock units | (0.2) | $ 0.2 | ||||
Employee stock purchase plan purchases | 0.7 | (0.2) | $ 0.9 | |||
Employee stock purchase plan purchases, Shares | 100,000 | (100,000) | ||||
Balance at Jul. 30, 2022 | 51.2 | $ 0.4 | 204.5 | $ (28.8) | (126) | 1.1 |
Balance,Shares at Jul. 30, 2022 | 40,800,000 | 3,300,000 | ||||
Net (loss) | (17.5) | (17.5) | ||||
Other comprehensive income (loss) | 10.3 | 10.3 | ||||
Dividends | (4.6) | (4.6) | ||||
Stock-based compensation | 3.9 | 3.9 | ||||
Balance at Oct. 29, 2022 | 43.3 | $ 0.4 | 208.4 | $ (28.8) | (148.1) | 11.4 |
Balance,Shares at Oct. 29, 2022 | 40,800,000 | 3,300,000 | ||||
Balance at Jan. 28, 2023 | (49.1) | $ 0.4 | 208 | $ (26.6) | (239.2) | 8.3 |
Balance,Shares at Jan. 28, 2023 | 41,100,000 | 3,000,000 | ||||
Net (loss) | (54.2) | (54.2) | ||||
Other comprehensive income (loss) | 0.8 | 0.8 | ||||
Stock-based compensation | 5.3 | 5.3 | ||||
Exercise of stock options | (0.4) | $ 0.4 | ||||
Vesting of restricted stock units | (0.1) | (0.9) | $ 0.8 | |||
Vesting of restricted stock units, Shares | 100,000 | (100,000) | ||||
Balance at Apr. 29, 2023 | (97.3) | $ 0.4 | 212 | $ (25.4) | (293.4) | 9.1 |
Balance,Shares at Apr. 29, 2023 | 41,200,000 | 2,900,000 | ||||
Balance at Jan. 28, 2023 | (49.1) | $ 0.4 | 208 | $ (26.6) | (239.2) | 8.3 |
Balance,Shares at Jan. 28, 2023 | 41,100,000 | 3,000,000 | ||||
Net (loss) | (149.1) | |||||
Balance at Oct. 28, 2023 | (183) | $ 0.4 | 207.3 | $ (19) | (388.3) | 16.6 |
Balance,Shares at Oct. 28, 2023 | 41,900,000 | 2,200,000 | ||||
Balance at Apr. 29, 2023 | (97.3) | $ 0.4 | 212 | $ (25.4) | (293.4) | 9.1 |
Balance,Shares at Apr. 29, 2023 | 41,200,000 | 2,900,000 | ||||
Net (loss) | (73.3) | (73.3) | ||||
Other comprehensive income (loss) | 6.4 | 6.4 | ||||
Stock-based compensation | 1.5 | 1.5 | ||||
Vesting of restricted stock units | (0.9) | $ 0.9 | ||||
Vesting of restricted stock units, Shares | 100,000 | (100,000) | ||||
Employee stock purchase plan purchases | 0.5 | (5) | $ 5.5 | |||
Employee stock purchase plan purchases, Shares | 600,000 | (600,000) | ||||
Balance at Jul. 29, 2023 | (162.2) | $ 0.4 | 207.6 | $ (19) | (366.7) | 15.5 |
Balance,Shares at Jul. 29, 2023 | 41,900,000 | 2,200,000 | ||||
Net (loss) | (21.6) | (21.6) | ||||
Other comprehensive income (loss) | 1.1 | 1.1 | ||||
Stock-based compensation | (0.2) | (0.2) | ||||
Vesting of restricted stock units | (0.1) | (0.1) | ||||
Balance at Oct. 28, 2023 | $ (183) | $ 0.4 | $ 207.3 | $ (19) | $ (388.3) | $ 16.6 |
Balance,Shares at Oct. 28, 2023 | 41,900,000 | 2,200,000 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | ||
Oct. 29, 2022 | Jul. 30, 2022 | Apr. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per share | $ 0.11 | $ 0.1 | $ 0.11 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Oct. 28, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1—Significant Accounting Policies Nature of Operations JOANN (as defined below) is the nation’s category leader in sewing and fabrics (collectively, “Sewing”), with one of the largest assortments of arts and crafts products. As a well-established and trusted brand for 80 years, the Company believes it has a deep understanding of its customers, what inspires their creativity and what fuels their incredibly diverse projects. In order to best serve its customers, JOANN has transformed itself into a fully-integrated, digitally-connected omni-channel retailer that provides Creative Products to its customers whenever and however they want. As of October 28, 2023, the Company operated 829 store locations in 49 states. Basis of Presentation The accompanying Consolidated Financial Statements and these notes are unaudited and have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. The Consolidated Financial Statements reflect all normal, recurring adjustments which management believes are necessary to present fairly the Company’s financial condition, results of operations and cash flows for all periods presented. The Consolidated Financial Statements, however, do not include all information necessary for a complete presentation of financial condition, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The accompanying Consolidated Financial Statements and these notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended January 28, 2023. Consolidation The Consolidated Financial Statements include the accounts of JOANN Inc. (the “Holding Company”), Needle Holdings LLC (“Needle Holdings”) and Jo-Ann Stores, LLC and its wholly-owned subsidiaries (collectively, “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. Fiscal Periods 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 fiscal year ending January 28, 2023). Fiscal years consist of 52 weeks, unless noted otherwise. Fiscal 2024 consists of 53 weeks and ends February 3, 2024. The fiscal quarters ended October 28, 2023 and October 29, 2022 were both comprised of 13 weeks. Seasonality Typical of most retail companies, the Company’s business is seasonal, with the majority of revenues and operating profits generated in the second half of the fiscal year. Accordingly, earnings or losses for a particular interim period are not necessarily indicative of full-year results. 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. Recently Issued Accounting Guidance There are no recently issued accounting pronouncements that the Company has not yet adopted which would have a material impact on the Consolidated Financial Statements. Related Party Transactions During the thirteen and thirty-nine weeks ended October 29, 2022 , the Company paid dividends of $ 3.1 million and $ 9.2 million, respectively, to LGP as part of the Company's quarterly dividend payments. The Company did not pay any dividends during the first thirty-nine weeks of fiscal 2024. |
Financing
Financing | 9 Months Ended |
Oct. 28, 2023 | |
Debt Disclosure [Abstract] | |
Financing | Note 2—Financing Long-term debt consisted of the following: October 28, October 29, January 28, (In millions) ABL Facility $ 406.5 $ 409.0 $ 324.0 Term Loan due 2028 661.5 668.3 666.6 FILO Loan 100.0 — — Total debt 1,168.0 1,077.3 990.6 Less unamortized discount and debt costs ( 13.0 ) ( 8.1 ) ( 7.8 ) Total debt, net 1,155.0 1,069.2 982.8 Less current portion of debt ( 6.8 ) ( 6.8 ) ( 6.8 ) Long-term debt, net $ 1,148.2 $ 1,062.4 $ 976.0 ABL Facility On October 21, 2016 , the Company entered into a senior secured asset based revolving credit facility (as amended from time to time, 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, 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 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 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. As further described under FILO Loans below, on March 10, 2023, the Company entered into a third amendment to the ABL Facility (the “Third Amendment"). As amended by the Third Amendment, the ABL Facility base rate loans bear an additional margin of 1.00 % when average historical excess capacity is less than 33.33 % of the maximum credit, 0.75 % when average historical excess capacity is greater than 33.33 % but less than 66.67 % of the maximum credit, and 0.50 % when average historical excess capacity is greater than or equal to 66.67 % of the maximum credit. Prior to March 10, 2023, under the ABL Facility, the base rate loans bore 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. The Third Amendment also replaced the London Interbank Offered Rate ("LIBOR") as the interest rate benchmark under the credit agreement with the forward-looking term rate based on the Term Secured Overnight Financing Rate ("SOFR") as administered by the Federal Reserve Bank of New York. SOFR loans, previously Eurodollar rate loans, bear an additional margin of 2.00 % when average historical excess capacity is less than 33.33 % of the maximum credit, 1.75 % when average historical excess capacity is greater than 33.33 % but less than 66.67 % of the maximum credit, and 1.50 % when average historical excess capacity is greater than or equal to 66.67 % of the maximum credit. Eurodollar rate loans bore 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 ABL Facility are calculated based on a rate of 0.20 % per annum. The Company has the option to request an increase in the size of the 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 ABL Facility are under no obligation to provide any such additional amounts. As of October 28, 2023, there were $ 406.5 million of borrowings on the ABL Facility, and the Company’s outstanding letters of credit obligation was $ 21.4 million. As of October 28, 2023, the Company’s excess availability on the ABL Facility was $ 72.1 million. During the third quarter of fiscal 2024, the weighted average interest rate for borrowings under the ABL Facility w as 7.65 %, compared to 4.28 % for the third quarter of fiscal 2023. As of October 29, 2022, the Company had $ 409.0 million of borrowings on the ABL Facility, and the Company’s outstanding letters of credit obligation was $ 16.5 million. As of October 29, 2022 , the Company’s excess availability on the ABL Facility was $ 74.5 million. FILO Loans On March 10, 2023 (the “Closing Date”), the Company entered into the Third Amendment to the ABL Facility. The Third Amendment, among other things, adds a series of first-in last-out loans (the “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 are secured by a subordinate priority security to the ABL Facility interest in JOANN’s inventory, accounts receivable and related assets with a second priority interest in all other assets, excluding real estate. The FILO Loans are guaranteed by existing and future wholly-owned subsidiaries of JOANN, subject to certain exceptions. The FILO Loans and the revolving commitments under the credit agreement (the “Revolving Commitments”) mature on December 22, 2026. The FILO Loans will not amortize. The FILO Loans are SOFR loans (as defined in the Third Amendment), that bear monthly interest at an applicable margin of 9.75% with one 100 basis point stepdown based on minimum Consolidated EBITDA (as defined in the Third Amendment), plus a one-month term SOFR rate established at the beginning of each calendar month and is subject to a SOFR floor of 1.50% . The Third Amendment also amends the credit agreement to (i) include certain trade receivables in the borrowing base, (ii) provide that loans drawn pursuant to the Revolving Commitments may be made at JOANN’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 availabilit y. Revolving loans 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 credit agreement remain unchanged and as previously disclosed. During the third quarter of fiscal 2024, the weighted average interest rate for borrowings under the FILO Loans due 2026 was 15.28 %. 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”). The Term Loan due 2028 was issued at 99.5 % of face value and was used to refinance the Company’s outstanding first-lien term loan credit facility due 2023, as well as to 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 %. In May 2023, the Company entered into the Amendment No. 3 ("Amendment No. 3") to the credit agreement. Amendment No. 3 replaced the LIBOR reference rate with SOFR. Other than the changes described above, all other material provisions of the credit agreement remain unchanged. During the third quarter of fiscal 2024, the weighted average interest rate for borrowings under the Term Loan due 2028 was 10.51 % compared to 7.69 % during the third quarter of fiscal 2023 . During the third quarter of fiscal 2024, the first interest rate swap benefit was received. After netting the swap with the term loan interest, the weighted average interest rate for the borrowing under the Term Loan due 2028 was 9.65 %. 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 paid 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 October 28, 2023, the Company was in compliance with all covenants under its credit agreements. For further details on the Company’s debt, see Note 2 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended January 28, 2023 . |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Oct. 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. In June 2023, an amendment replaced LIBOR as the floating rate option under the swap agreement with the forward-looking term rate based on SOFR. The fair value of the interest rate swap as of October 28, 2023 was $ 13.8 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. In June 2023, an amendment replaced LIBOR as the floating rate option under the swap agreement with the forward-looking term rate based on SOFR. The fair value of the interest rate swap as of October 28, 2023 was $ 8.6 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 October 28, 2023, none of the netting arrangements involved collateral. The net fair value of the interest rate swaps as of October 28, 2023 was $ 22.4 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 gain or loss outstanding will be recognized in earnings. The impacts of the Company’s derivative instruments on the accompanying Consolidated Statements of Comprehensive Income (Loss) for the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022 are presented in the table below: Thirteen Weeks Ended Thirty-Nine Weeks Ended October 28, October 29, October 28, October 29, (In millions) Interest rate swap - $200M notional amount $ 1.2 $ 5.4 $ 5.3 $ 7.7 Interest rate swap - $250M notional amount 0.4 8.5 6.0 5.3 Gain recognized in other comprehensive income (loss), gross of income taxes $ 1.6 $ 13.9 $ 11.3 $ 13.0 The components of interest expense, including the amount of gains and losses on derivative instruments and related hedged items, as reported on the Consolidated Statements of Comprehensive Income (Loss) for the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022 are presented in the table below: Thirteen Weeks Ended Thirty-Nine Weeks Ended October 28, October 29, October 28, October 29, (In millions) Interest expense on debt $ 29.8 $ 18.1 $ 81.9 $ 42.5 Interest (income) of derivatives ( 1.4 ) — ( 1.4 ) — Interest expense on debt and derivatives $ 28.4 $ 18.1 $ 80.5 $ 42.5 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 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 SOFR-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 carrying and fair value of the Company’s interest rate derivatives were as follows: Instrument Balance Sheet Location October 28, October 29, (In millions) Interest rate swaps - current Prepaid expenses and other current assets $ 12.9 $ 1.0 Interest rate swaps - long-term Other assets $ 9.5 $ 14.4 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 Loan due 2028 was determined based on quoted market prices or recent trades of this debt instrument 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 value of the Company’s Term Loan due 2028 as of October 28, 2023 and October 29, 2022: October 28, 2023 October 29, 2022 Carrying Fair Carrying Fair (In millions) Term Loan due 2028 (a) $ 654.5 $ 189.8 $ 660.2 $ 439.9 (a) 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. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Oct. 28, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 5—Goodwill and Other Intangible Assets The carrying amount of goodwill at October 28, 2023 and October 29, 2022 was as follows: October 28, October 29, (In millions) Goodwill, gross $ 643.8 $ 643.8 Accumulated impairment ( 481.8 ) ( 481.8 ) Goodwill, net $ 162.0 $ 162.0 The carrying amount and accumulated amortization of identifiable intangible assets at October 28, 2023 and October 29, 2022 was as follows: October 28, 2023 October 29, 2022 Estimated Gross Accumulated Gross Accumulated (In millions) Indefinite-lived intangible assets: JOANN trade name — $ 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 ( 0.1 ) Technology 3 5.3 ( 4.6 ) 5.3 ( 1.2 ) Customer relationships 16 110.0 ( 86.7 ) 110.0 ( 79.8 ) Total intangible assets $ 355.4 $ ( 91.4 ) $ 450.4 $ ( 81.1 ) The Company recognized intangible asset amortization of $ 2.2 million and $ 6.5 million for the thirteen and thirty-nine weeks ended October 28, 2023 , respectively. Additionally, the Company recognized impairment of intangible assets, related to Technology, of $ 1.7 million during the thirteen and thirty-nine weeks ended October 28, 2023. The Company recognized intangible asset amortization of $ 2.1 million and $ 6.3 million for the thirteen and thirty-nine weeks ended October 29, 2022, respectively. The weighted average amortization period of amortizable intangible assets as of October 28, 2023 approximated 3.3 years. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6—Income Taxes Effective Tax Rate The effective income tax rate for the third quarter of fiscal 2024 was 34.4 %, an income tax benefit on a pre-tax book loss, compared to the rate for the third quarter of fiscal 2023, which was 27.1 %, also an income tax benefit on a pre-tax book loss. The effective income tax rate for the first thirty-nine weeks of fiscal 2024 was 17.3 %, an income tax benefit on a pre-tax book loss, compared to 27.7 %, also an income tax benefit on a pre-tax book loss, for the first thirty-nine weeks of fiscal 2023. The effective tax rate increased from the third quarter of fiscal 2023 to the third quarter of fiscal 2024 primarily because the Company, after considering updated information, including the filing of the fiscal 2023 federal income tax return, reduced the forecasted valuation allowance against a significant portion of the deferred tax asset relating to the disallowed interest expense deduction and related carryover under Section 163(j) of the Internal Revenue Code of 1986 (“the Code”), as amended, along with related state law. The decrease in the effective tax rate from the first thirty-nine weeks of fiscal 2023 to the first thirty-nine weeks of fiscal 2024 was primarily because the Company continues to anticipate, beginning with the first quarter of fiscal 2024, the need to record a valuation allowance for the full year against a significant portion of the Company’s current year deferred tax asset relating to the future carryover of disallowed interest expense deductions for federal and state income tax purposes under Section 163(j) of the Code, along with related state law. As the anticipated additional valuation allowance is included in the Company’s annual estimated effective tax rate, a portion of the unfavorable valuation allowance impact is included in the net income tax benefit recorded during both the third quarter and first thirty-nine weeks of fiscal 2024. The effective tax rate is subject to change based on the mix of income from different state jurisdictions, which have different tax rates, as well as the change in status or outcome of uncertain tax positions. The Company evaluates its effective tax rate on a quarterly basis and updates its estimate of the full-year effective rate as necessary. Reserves for Uncertain Tax Positions At the end of the third quarter of fiscal 2024, unrecognized tax benefits were $ 1.0 million, of which $ 0.8 million would affect the effective tax rate, if recognized. 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 at the end of the third quarter of both fiscal 2024 and fiscal 2023 was $ 0.1 million. 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 examinations. Any increase in the amount of uncertain tax positions within the next 12 months is expected to be insignificant. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Oct. 28, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Note 7—Loss Per Share Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding. Diluted earnings (loss) 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 (loss) per share. In periods in which a net loss has occurred, as is the case for fiscal 2024, 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 loss per share and the stock-based awards excluded from the calculation of diluted loss per share because their effect would have been antidilutive for the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022: Thirteen Weeks Ended Thirty-Nine Weeks Ended October 28, October 29, October 28, October 29, (In millions except per share data) Net (loss) $ ( 21.6 ) $ ( 17.5 ) $ ( 149.1 ) $ ( 109.5 ) Weighted-average common shares outstanding – basic 42.2 40.8 41.8 40.7 Effect of dilutive stock-based awards — — — — Weighted-average common shares outstanding – diluted 42.2 40.8 41.8 40.7 Basic (loss) per common share $ ( 0.51 ) $ ( 0.43 ) $ ( 3.57 ) $ ( 2.69 ) Diluted (loss) per common share $ ( 0.51 ) $ ( 0.43 ) $ ( 3.57 ) $ ( 2.69 ) Antidilutive stock-based awards excluded from diluted calculation 9.9 4.5 9.2 4.5 |
Segments and Disaggregated Reve
Segments and Disaggregated Revenue | 9 Months Ended |
Oct. 28, 2023 | |
Segment Reporting [Abstract] | |
Segments and Disaggregated Revenue | Note 8—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. The role of CODM is performed by the Office of the Chief Executive Officer. 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: Thirteen Weeks Ended Thirty-Nine Weeks Ended October 28, October 29, October 28, October 29, (In millions) Sewing $ 260.7 $ 266.5 $ 706.0 $ 725.1 Arts and Crafts and Home Décor 273.3 288.5 743.7 774.9 Other 5.8 7.8 22.0 24.1 Total $ 539.8 $ 562.8 $ 1,471.7 $ 1,524.1 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 28, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9—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. |
Gain on Sale Leaseback
Gain on Sale Leaseback | 9 Months Ended |
Oct. 28, 2023 | |
Leases [Abstract] | |
Gain on Sale Leaseback | Note 10—Gain on Sale Leaseback During the third quarter of fiscal 2024, the Company completed a sale and leaseback transaction for its Hudson Facility for a sale price of $ 34.5 million. The transaction qualified as a completed sale under the sale leaseback accounting requirements and the Company recorded a gain of $ 12.1 million. The cash proceeds from the sale, before income taxes and net of transaction fees, were $ 33.2 million. Net after tax proceeds from the sale will be used to invest in assets for the business. The lease related to this transaction is classified as an operating lease and has an initial lease term of 5 years and three 5-year extension options . |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 28, 2023 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations JOANN (as defined below) is the nation’s category leader in sewing and fabrics (collectively, “Sewing”), with one of the largest assortments of arts and crafts products. As a well-established and trusted brand for 80 years, the Company believes it has a deep understanding of its customers, what inspires their creativity and what fuels their incredibly diverse projects. In order to best serve its customers, JOANN has transformed itself into a fully-integrated, digitally-connected omni-channel retailer that provides Creative Products to its customers whenever and however they want. As of October 28, 2023, the Company operated 829 store locations in 49 states. |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements and these notes are unaudited and have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. The Consolidated Financial Statements reflect all normal, recurring adjustments which management believes are necessary to present fairly the Company’s financial condition, results of operations and cash flows for all periods presented. The Consolidated Financial Statements, however, do not include all information necessary for a complete presentation of financial condition, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The accompanying Consolidated Financial Statements and these notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended January 28, 2023. Consolidation The Consolidated Financial Statements include the accounts of JOANN Inc. (the “Holding Company”), Needle Holdings LLC (“Needle Holdings”) and Jo-Ann Stores, LLC and its wholly-owned subsidiaries (collectively, “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. Fiscal Periods 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 fiscal year ending January 28, 2023). Fiscal years consist of 52 weeks, unless noted otherwise. Fiscal 2024 consists of 53 weeks and ends February 3, 2024. The fiscal quarters ended October 28, 2023 and October 29, 2022 were both comprised of 13 weeks. Seasonality Typical of most retail companies, the Company’s business is seasonal, with the majority of revenues and operating profits generated in the second half of the fiscal year. Accordingly, earnings or losses for a particular interim period are not necessarily indicative of full-year results. |
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. |
Recently Adopted Accounting Guidance | Recently Issued Accounting Guidance There are no recently issued accounting pronouncements that the Company has not yet adopted which would have a material impact on the Consolidated Financial Statements. |
Related Party Transactions | Related Party Transactions During the thirteen and thirty-nine weeks ended October 29, 2022 , the Company paid dividends of $ 3.1 million and $ 9.2 million, respectively, to LGP as part of the Company's quarterly dividend payments. The Company did not pay any dividends during the first thirty-nine weeks of fiscal 2024. |
Financing (Tables)
Financing (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | Long-term debt consisted of the following: October 28, October 29, January 28, (In millions) ABL Facility $ 406.5 $ 409.0 $ 324.0 Term Loan due 2028 661.5 668.3 666.6 FILO Loan 100.0 — — Total debt 1,168.0 1,077.3 990.6 Less unamortized discount and debt costs ( 13.0 ) ( 8.1 ) ( 7.8 ) Total debt, net 1,155.0 1,069.2 982.8 Less current portion of debt ( 6.8 ) ( 6.8 ) ( 6.8 ) Long-term debt, net $ 1,148.2 $ 1,062.4 $ 976.0 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Impacts of Derivative Instruments 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 the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022 are presented in the table below: Thirteen Weeks Ended Thirty-Nine Weeks Ended October 28, October 29, October 28, October 29, (In millions) Interest rate swap - $200M notional amount $ 1.2 $ 5.4 $ 5.3 $ 7.7 Interest rate swap - $250M notional amount 0.4 8.5 6.0 5.3 Gain recognized in other comprehensive income (loss), gross of income taxes $ 1.6 $ 13.9 $ 11.3 $ 13.0 The components of interest expense, including the amount of gains and losses on derivative instruments and related hedged items, as reported on the Consolidated Statements of Comprehensive Income (Loss) for the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022 are presented in the table below: Thirteen Weeks Ended Thirty-Nine Weeks Ended October 28, October 29, October 28, October 29, (In millions) Interest expense on debt $ 29.8 $ 18.1 $ 81.9 $ 42.5 Interest (income) of derivatives ( 1.4 ) — ( 1.4 ) — Interest expense on debt and derivatives $ 28.4 $ 18.1 $ 80.5 $ 42.5 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary Of Carrying And Fair Value Of Interest Rate Derivatives | The carrying and fair value of the Company’s interest rate derivatives were as follows: Instrument Balance Sheet Location October 28, October 29, (In millions) Interest rate swaps - current Prepaid expenses and other current assets $ 12.9 $ 1.0 Interest rate swaps - long-term Other assets $ 9.5 $ 14.4 |
Summary of Carrying and Fair Values of Term Loans | The following provides the carrying and fair value of the Company’s Term Loan due 2028 as of October 28, 2023 and October 29, 2022: October 28, 2023 October 29, 2022 Carrying Fair Carrying Fair (In millions) Term Loan due 2028 (a) $ 654.5 $ 189.8 $ 660.2 $ 439.9 (a) Net of deferred financing costs and original issue discount. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Carrying Amount of Goodwill | The carrying amount of goodwill at October 28, 2023 and October 29, 2022 was as follows: October 28, October 29, (In millions) Goodwill, gross $ 643.8 $ 643.8 Accumulated impairment ( 481.8 ) ( 481.8 ) Goodwill, net $ 162.0 $ 162.0 |
Schedule of Carrying Amount and Accumulated Amortization of Identifiable Intangible Assets | The carrying amount and accumulated amortization of identifiable intangible assets at October 28, 2023 and October 29, 2022 was as follows: October 28, 2023 October 29, 2022 Estimated Gross Accumulated Gross Accumulated (In millions) Indefinite-lived intangible assets: JOANN trade name — $ 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 ( 0.1 ) Technology 3 5.3 ( 4.6 ) 5.3 ( 1.2 ) Customer relationships 16 110.0 ( 86.7 ) 110.0 ( 79.8 ) Total intangible assets $ 355.4 $ ( 91.4 ) $ 450.4 $ ( 81.1 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Oct. 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 loss per share and the stock-based awards excluded from the calculation of diluted loss per share because their effect would have been antidilutive for the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022: Thirteen Weeks Ended Thirty-Nine Weeks Ended October 28, October 29, October 28, October 29, (In millions except per share data) Net (loss) $ ( 21.6 ) $ ( 17.5 ) $ ( 149.1 ) $ ( 109.5 ) Weighted-average common shares outstanding – basic 42.2 40.8 41.8 40.7 Effect of dilutive stock-based awards — — — — Weighted-average common shares outstanding – diluted 42.2 40.8 41.8 40.7 Basic (loss) per common share $ ( 0.51 ) $ ( 0.43 ) $ ( 3.57 ) $ ( 2.69 ) Diluted (loss) per common share $ ( 0.51 ) $ ( 0.43 ) $ ( 3.57 ) $ ( 2.69 ) Antidilutive stock-based awards excluded from diluted calculation 9.9 4.5 9.2 4.5 |
Segments and Disaggregated Re_2
Segments and Disaggregated Revenue (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Product Category | The following table shows revenue by product category: Thirteen Weeks Ended Thirty-Nine Weeks Ended October 28, October 29, October 28, October 29, (In millions) Sewing $ 260.7 $ 266.5 $ 706.0 $ 725.1 Arts and Crafts and Home Décor 273.3 288.5 743.7 774.9 Other 5.8 7.8 22.0 24.1 Total $ 539.8 $ 562.8 $ 1,471.7 $ 1,524.1 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 29, 2022 USD ($) | Oct. 28, 2023 USD ($) States OperatedRetailStores | Oct. 29, 2022 USD ($) | |
Summary Of Significant Accounting Principles And Policies [Line Items] | |||
Number of retail stores | OperatedRetailStores | 829 | ||
Number of states in which stores operates | States | 49 | ||
Dividends paid | $ 0 | $ 13.4 | |
LGP | |||
Summary Of Significant Accounting Principles And Policies [Line Items] | |||
Dividends paid | $ 3.1 | $ 9.2 |
Financing - Summary of Long-ter
Financing - Summary of Long-term Debt (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Debt Instrument [Line Items] | |||
Total debt | $ 1,168 | $ 990.6 | $ 1,077.3 |
Less unamortized discount and debt costs | (13) | (7.8) | (8.1) |
Total debt, net | 1,155 | 982.8 | 1,069.2 |
Less current portion of debt | (6.8) | (6.8) | (6.8) |
Long-term debt, net | 1,148.2 | 976 | 1,062.4 |
ABL Facility [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | 406.5 | 324 | 409 |
FILO Loan [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | 100 | 0 | 0 |
Term Loan due 2028 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 661.5 | $ 666.6 | $ 668.3 |
Financing - Additional Informat
Financing - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |||||||||
Oct. 28, 2023 | Mar. 10, 2023 | Dec. 22, 2021 | Jul. 07, 2021 | Jul. 06, 2021 | Oct. 21, 2016 | Oct. 28, 2023 | Oct. 29, 2022 | Jan. 28, 2023 | Nov. 25, 2020 | |
Debt Instrument [Line Items] | ||||||||||
Percentage Of Maximum Credit excess capacity | 12.50% | |||||||||
Total facility | $ 650 | |||||||||
Total debt | 1,168 | $ 1,168 | $ 1,077.3 | $ 990.6 | ||||||
Term loan payments | $ (5.1) | (5.1) | ||||||||
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 paid 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. | |||||||||
Credit agreement market capitalization percentage | 7% | |||||||||
Maximum credit fixed charge | $ 40 | |||||||||
Percentage of maximum credit | 17.50% | |||||||||
Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Common stock dividend rate percentage | 6% | |||||||||
Fixed charge coverage ratio | 1% | |||||||||
Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount available for dividend | $ 100 | $ 100 | ||||||||
Fixed charge coverage ratio | 1% | |||||||||
Term Loan due 2023 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, weighted average interest rate | 7.69% | 7.69% | ||||||||
FILO Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, weighted average interest rate | 15.28% | 15.28% | ||||||||
SOFR Credit Spread Adjustment Rate | 0.10% | 0.10% | ||||||||
Floor Credit Spread Adjustment Rate | 0% | 0% | ||||||||
Series of FILO Loans Amount | $ 100 | |||||||||
Interest rate on FILO Loan Description | The FILO Loans are SOFR loans (as defined in the Third Amendment), that bear monthly interest at an applicable margin of 9.75% with one 100 basis point stepdown based on minimum Consolidated EBITDA (as defined in the Third Amendment), plus a one-month term SOFR rate established at the beginning of each calendar month and is subject to a SOFR floor of 1.50% | |||||||||
Increase in SOFR loan interest rate margin Description | increases the applicable margin for SOFR loans to 2.00% with two twenty-five basis point step-downs based on excess availabilit | |||||||||
Amended Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, maturity date | Nov. 25, 2025 | |||||||||
Second Amendment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Issuance of senior secured financing | $ 500 | |||||||||
Debt instrument, maturity date | Dec. 22, 2026 | |||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | |||||||||
Amount of outstanding letters of credit obligation | $ 150 | $ 150 | ||||||||
Second Amendment | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Increments | 20 | $ 20 | ||||||||
Second Amendment | Term Loan due 2028 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, maturity date | Jul. 07, 2028 | |||||||||
Total debt | $ 675 | |||||||||
Percentage of face value | 99.50% | |||||||||
Second Amendment | Term Loan due 2028 | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.75% | 1% | ||||||||
Senior Notes | Amended Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Secured debt | $ 500 | |||||||||
Eurodollar Rate Loans | Second Amendment | Term Loan due 2028 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable interest rates | 4.75% | 5% | ||||||||
Eurodollar Rate Loans | Third Amendment [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage Of Maximum Credit excess capacity | 0.25% | |||||||||
Eurodollar Rate Loan Additional Margin Percentage | 0.50% | 0.50% | ||||||||
Percentage of maximum credit | 66.67% | 40% | ||||||||
Eurodollar Rate Loans | Third Amendment [Member] | SOFR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage Of Maximum Credit excess capacity | 1.25% | |||||||||
Eurodollar Rate Loan Additional Margin Percentage | 1.50% | |||||||||
Percentage of maximum credit | 40% | |||||||||
Base Rate Loans | Second Amendment | Term Loan due 2028 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable interest rates | 3.75% | 4% | ||||||||
Base Rate Loans | Third Amendment [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Base Rate Loans Additional Margin | 1% | |||||||||
Percentage Of Maximum Credit excess capacity | 0.75% | |||||||||
Percentage of maximum credit | 33.33% | |||||||||
Base Rate Loans | Third Amendment [Member] | SOFR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Base Rate Loans Additional Margin | 2% | |||||||||
Percentage Of Maximum Credit excess capacity | 1.75% | |||||||||
Percentage of maximum credit | 33.33% | |||||||||
Base Rate Loans | Third Amendment [Member] | SOFR | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage Of Maximum Credit excess capacity | 1.50% | |||||||||
Excess Capacity [Member] | Eurodollar Rate Loans | SOFR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage Of Maximum Credit excess capacity | 40% | |||||||||
Excess Capacity [Member] | Eurodollar Rate Loans | Third Amendment [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage Of Maximum Credit excess capacity | 40% | |||||||||
Excess Capacity [Member] | Eurodollar Rate Loans | Third Amendment [Member] | SOFR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage Of Maximum Credit excess capacity | 66.67% | |||||||||
Excess Capacity [Member] | Base Rate Loans | Third Amendment [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage Of Maximum Credit excess capacity | 33.33% | |||||||||
Percentage of maximum credit | 66.67% | |||||||||
Excess Capacity [Member] | Base Rate Loans | Third Amendment [Member] | SOFR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage Of Maximum Credit excess capacity | 33.33% | |||||||||
Percentage of maximum credit | 66.67% | |||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, initiation date | Oct. 21, 2016 | |||||||||
Issuance of senior secured financing | $ 400 | |||||||||
Debt instrument, maturity date | Oct. 20, 2021 | |||||||||
Line of credit facility, maximum borrowing capacity | 406.5 | $ 406.5 | 409 | |||||||
Amount of outstanding letters of credit obligation | 21.4 | 21.4 | 16.5 | |||||||
Excess availability amount | $ 72.1 | $ 72.1 | $ 74.5 | |||||||
Revolving Credit Facility | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, weighted average interest rate | 7.65% | 7.65% | ||||||||
Revolving Credit Facility | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, weighted average interest rate | 4.28% | 4.28% | ||||||||
Revolving Credit Facility | Term Loan due 2028 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, weighted average interest rate | 9.65% | 10.51% | 9.65% |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Oct. 28, 2023 | May 31, 2022 | Aug. 31, 2021 | |
Interest Rate Swap | |||
Derivative Instruments Gain Loss [Line Items] | |||
Fair value of outstanding derivative | $ 13.8 | ||
Second Interest Rate Swap | |||
Derivative Instruments Gain Loss [Line Items] | |||
Fair value of outstanding derivative | 8.6 | ||
Third Interest Rate Swap | |||
Derivative Instruments Gain Loss [Line Items] | |||
Fair value of outstanding derivative | $ 22.4 | ||
US Bank | Interest Rate Swap | |||
Derivative Instruments Gain Loss [Line Items] | |||
Amortized notional amount | $ 200 | ||
Derivative start date | Oct. 26, 2023 | ||
Derivative maturity date | Oct. 26, 2025 | ||
US Bank | Second Interest Rate Swap | |||
Derivative Instruments Gain Loss [Line Items] | |||
Amortized notional amount | $ 250 | ||
Derivative start date | Jul. 26, 2023 | ||
Derivative maturity date | Jan. 26, 2026 | ||
US Bank | LIBOR | Interest Rate Swap | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative floor rate of interest | 0.75% | ||
Derivative fixed rate of interest | 1.44% | ||
US Bank | LIBOR | Second Interest Rate Swap | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative floor rate of interest | 0.75% | ||
Derivative fixed rate of interest | 3.37% |
Derivative Instruments - Summar
Derivative Instruments - Summary of Impacts of Derivative Instruments on Accompanying Consolidated Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Offsetting Assets [Line Items] | ||||
Gain recognized in other comprehensive income (loss), gross of income taxes | $ 1.6 | $ 13.9 | $ 11.3 | $ 13 |
Interest expense on debt | 29.8 | 18.1 | 81.9 | 42.5 |
Interest (income) of derivatives | (1.4) | 0 | (1.4) | 0 |
Interest expense on debt and derivatives | 28.4 | 18.1 | 80.5 | 42.5 |
Interest rate swap - $200M | ||||
Offsetting Assets [Line Items] | ||||
Gain recognized in other comprehensive income (loss), gross of income taxes | 1.2 | 5.4 | 5.3 | 7.7 |
Interest rate swap - $250M | ||||
Offsetting Assets [Line Items] | ||||
Gain recognized in other comprehensive income (loss), gross of income taxes | $ 0.4 | $ 8.5 | $ 6 | $ 5.3 |
Fair value Measurement - Summar
Fair value Measurement - Summary of Carrying and fair Value Of Interest Rate Derivatives (Details) - Interest Rate Swap - USD ($) $ in Millions | Oct. 28, 2023 | Oct. 29, 2022 |
Prepaid Expenses and Other Current Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swaps - Current | $ 12.9 | $ 1 |
Other Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swaps - Long-term | $ 9.5 | $ 14.4 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying and Fair Values of Term Loans (Details) - Term Loan due 2028 - USD ($) $ in Millions | Oct. 28, 2023 | Oct. 29, 2022 | |
Carrying Value | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Carrying and fair values of term loans | [1] | $ 654.5 | $ 660.2 |
Fair Value | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Carrying and fair values of term loans | [1] | $ 189.8 | $ 439.9 |
[1] Net of deferred financing costs and original issue discount. |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||
Goodwill, gross | $ 643.8 | $ 643.8 | |
Accumulated impairment | (481.8) | (481.8) | |
Goodwill, net | $ 162 | $ 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 | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Finite Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets, Gross Carrying Amount | $ 355.4 | $ 450.4 | |
Accumulated Amortization | (91.4) | (81.1) | |
Total intangible assets | 263.9 | $ 272.1 | 369.3 |
JOANN Trade Name | |||
Finite Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets, Gross Carrying Amount | 230 | 325 | |
Accumulated Amortization | 0 | ||
Joann.com Domain Name | |||
Finite Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets, Gross Carrying Amount | 10 | 10 | |
Accumulated Amortization | 0 | ||
Creativebug Trade Name | |||
Finite Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets, Gross Carrying Amount | $ 0.1 | ||
Estimated Life in Years | 10 years | ||
Gross Carrying Amount | 0.1 | ||
Accumulated Amortization | $ (0.1) | (0.1) | |
Technology | |||
Finite Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets, Gross Carrying Amount | $ 5.3 | ||
Estimated Life in Years | 3 years | ||
Gross Carrying Amount | 5.3 | ||
Accumulated Amortization | $ (4.6) | (1.2) | |
Customer Relationships | |||
Finite Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets, Gross Carrying Amount | $ 110 | ||
Estimated Life in Years | 16 years | ||
Gross Carrying Amount | 110 | ||
Accumulated Amortization | $ (86.7) | $ (79.8) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Intangible asset amortization | $ 2.2 | $ 2.1 | $ 6.5 | $ 6.3 |
Impairment Of Intangible Assets | $ 1.7 | $ 1.7 | ||
Weighted average amortization period of amortizable intangible assets | 3 years 3 months 18 days |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 34.40% | 27.10% | 17.30% | 27.70% |
Unrecognized tax benefits | $ 1 | $ 1 | ||
Unrecognized tax benefits which would affect effective tax rate if recognized | 0.8 | 0.8 | ||
Interest and penalties accrued | $ 0.1 | $ 0.1 | 0.1 | $ 0.1 |
Reduction in uncertain tax position resulting from resolution or closure of tax examinations within next fiscal | $ 0.1 |
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, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Oct. 28, 2023 | Jul. 29, 2023 | Apr. 29, 2023 | Oct. 29, 2022 | Jul. 30, 2022 | Apr. 30, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Earnings Per Share [Abstract] | ||||||||
Net (loss) | $ (21.6) | $ (73.3) | $ (54.2) | $ (17.5) | $ (56.9) | $ (35.1) | $ (149.1) | $ (109.5) |
Weighted-average common shares outstanding - Basic | 42.2 | 40.8 | 41.8 | 40.7 | ||||
Effect of dilutive stock-based awards | 0 | 0 | 0 | 0 | ||||
Weighted-average common shares outstanding - Diluted | 42.2 | 40.8 | 41.8 | 40.7 | ||||
Basic (loss) per common share | $ (0.51) | $ (0.43) | $ (3.57) | $ (2.69) | ||||
Diluted (loss) per common share | $ (0.51) | $ (0.43) | $ (3.57) | $ (2.69) | ||||
Antidilutive stock-based awards excluded from diluted calculation | 9.9 | 4.5 | 9.2 | 4.5 |
Segments and Disaggregated Re_3
Segments and Disaggregated Revenue - Additional Information (Details) | 9 Months Ended |
Oct. 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 | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Net sales | $ 539.8 | $ 562.8 | $ 1,471.7 | $ 1,524.1 |
Sewing | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Net sales | 260.7 | 266.5 | 706 | 725.1 |
Arts and Crafts and Home Décor | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Net sales | 273.3 | 288.5 | 743.7 | 774.9 |
Other | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Net sales | $ 5.8 | $ 7.8 | $ 22 | $ 24.1 |
Gain on Sale Leaseback - Additi
Gain on Sale Leaseback - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Sale Leaseback Transaction [Line Items] | ||||
Sale and leaseback transaction, gain (loss), net | $ 12.1 | $ 0 | $ 12.1 | $ 0 |
Proceeds from sale leaseback | 33.2 | $ 0 | ||
Sale Leaseback of Distribution Center | ||||
Sale Leaseback Transaction [Line Items] | ||||
Sale leaseback transaction, sale price | $ 34.5 | 34.5 | ||
Sale and leaseback transaction, gain (loss), net | 12.1 | |||
Proceeds from sale leaseback | $ 33.2 | |||
Lease initial term | 5 years | 5 years | ||
Lease extension option description | 5-year extension options |