Document And Entity Information
Document And Entity Information | 3 Months Ended |
May 04, 2019shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | TRANS WORLD ENTERTAINMENT CORP |
Document Type | 10-Q |
Current Fiscal Year End Date | --01-31 |
Entity Common Stock, Shares Outstanding | 36,258,839 |
Amendment Flag | false |
Entity Central Index Key | 0000795212 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Document Period End Date | May 4, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q1 |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Ex Transition Period | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 3,822 | $ 4,355 | $ 14,509 |
Restricted cash | 950 | 4,126 | 4,113 |
Accounts receivable | 4,600 | 5,383 | 6,620 |
Merchandise inventory | 88,487 | 94,842 | 110,677 |
Prepaid expenses and other current assets | 4,769 | 6,657 | 7,418 |
Total current assets | 102,628 | 115,363 | 143,337 |
Restricted cash | 5,545 | 5,745 | 6,354 |
Fixed assets, net | 7,673 | 7,529 | 13,138 |
Operating lease right-of-use assets | 26,067 | ||
Goodwill | 39,191 | ||
Intangible assets, net | 3,382 | 3,668 | 22,995 |
Other assets | 5,727 | 5,708 | 6,760 |
TOTAL ASSETS | 151,022 | 138,013 | 231,775 |
CURRENT LIABILITIES | |||
Accounts payable | 28,925 | 34,329 | 36,894 |
Short-term borrowings | 3,072 | ||
Accrued expenses and other current liabilities | 5,743 | 8,132 | 9,900 |
Deferred revenue | 6,128 | 6,955 | 7,473 |
Current portion of operating lease liabilities | 9,179 | ||
Total current liabilities | 53,047 | 49,416 | 54,267 |
Operating lease liabilities | 20,411 | ||
Other long-term liabilities | 21,553 | 24,867 | 27,059 |
TOTAL LIABILITIES | 95,011 | 74,283 | 81,326 |
SHAREHOLDERS’ EQUITY | |||
Preferred stock ($0.01 par value; 5,000,000 shares authorized; none issued) | |||
Common stock ($0.01 par value; 200,000,000 shares authorized; 64,436,671, 64,436,671 and 64,369,171 shares issued, respectively) | 644 | 644 | 643 |
Additional paid-in capital | 344,292 | 344,214 | 341,946 |
Treasury stock at cost (28,177,832, 28,177,832 and 28,156,601 shares, respectively) | (230,166) | (230,166) | (230,145) |
Accumulated other comprehensive loss | (730) | (735) | (1,003) |
(Accumulated deficit) Retained earnings | (58,029) | (50,227) | 39,008 |
TOTAL SHAREHOLDERS’ EQUITY | 56,011 | 63,730 | 150,449 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 151,022 | $ 138,013 | $ 231,775 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Preferred stock par value (in Dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Common stock par value (in Dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 |
Common stock, shares issued | 64,436,671 | 64,436,671 | 64,369,171 |
Treasury stock, shares at cost | 28,177,832 | 28,177,832 | 28,156,601 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Net sales | $ 79,289 | $ 95,232 |
Other revenue | 861 | 1,371 |
Total revenue | 80,150 | 96,603 |
Cost of sales | 54,760 | 64,915 |
Gross profit | 25,390 | 31,688 |
Selling, general and administrative expenses | 33,031 | 39,846 |
Loss from operations | (7,641) | (8,158) |
Interest expense | 132 | 64 |
Other income | (43) | (79) |
Loss before income tax expense | (7,730) | (8,143) |
Income tax expense | 72 | 4 |
Net loss | $ (7,802) | $ (8,147) |
BASIC AND DILUTED INCOME PER SHARE: | ||
Basic and diluted loss per common share (in Dollars per share) | $ (0.21) | $ (0.22) |
Weighted average number of common shares outstanding – basic and diluted (in Shares) | 36,322 | 36,237 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Net loss | $ (7,802) | $ (8,147) |
Amortization of pension gain | 5 | 5 |
Comprehensive loss | $ (7,797) | $ (8,142) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance at Feb. 02, 2018 | $ 643 | $ (230,145) | $ 341,103 | $ (998) | $ 47,611 | $ 158,214 |
Balance (in Shares) at Feb. 02, 2018 | 64,305 | (28,157) | ||||
Adjustment for adoption of accounting standard, ASU 2014-09 | Accounting Standards Update 2014-09 [Member] | (456) | (456) | ||||
Net Income (Loss) | (8,147) | (8,147) | ||||
Other comprehensive income | (5) | (5) | ||||
Common stock issued-new grants | 80 | 80 | ||||
Common stock issued-new grants (in Shares) | 64 | |||||
Amortization of unearned compensation/restricted stock amortization | 763 | 763 | ||||
Balance at May. 05, 2018 | $ 643 | $ (230,145) | 341,946 | (1,003) | 39,008 | 150,449 |
Balance (in Shares) at May. 05, 2018 | 64,369 | (28,157) | ||||
Balance at Feb. 02, 2019 | $ 644 | $ (230,166) | 344,214 | (735) | (50,227) | 63,730 |
Balance (in Shares) at Feb. 02, 2019 | 64,437 | (28,178) | ||||
Net Income (Loss) | (7,802) | (7,802) | ||||
Other comprehensive income | 5 | 5 | ||||
Amortization of unearned compensation/restricted stock amortization | 78 | 78 | ||||
Balance at May. 04, 2019 | $ 644 | $ (230,166) | $ 344,292 | $ (730) | $ (58,029) | $ 56,011 |
Balance (in Shares) at May. 04, 2019 | 64,437 | (28,178) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
OPERATING ACTIVITIES: | ||
Net income loss | $ (7,802) | $ (8,147) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation of fixed assets | 695 | 1,261 |
Amortization of intangible assets | 286 | 972 |
Stock-based compensation | 78 | 843 |
Loss on disposal of fixed assets | 3 | 10 |
Change in cash surrender value | (145) | 51 |
Changes in operating assets and liabilities that provide (use) cash: | ||
Accounts receivable | 783 | (2,151) |
Merchandise inventory | 6,355 | (1,300) |
Prepaid expenses and other current assets | 1,141 | (442) |
Other long-term assets | 2,059 | (126) |
Accounts payable | (5,404) | (4,886) |
Accrued expenses and other current liabilities | (956) | 362 |
Deferred revenue | (827) | (991) |
Other long-term liabilities | (2,448) | (2,077) |
Net cash used in operating activities | (6,182) | (16,621) |
INVESTING ACTIVITIES: | ||
Purchases of fixed assets | (842) | (863) |
Capital distributions from joint venture | 43 | 454 |
Net cash used in investing activities | (799) | (409) |
FINANCING ACTIVITIES: | ||
Proceeds from long term borrowings | 3,072 | |
Payments to etailz shareholders | (1,500) | |
Net cash provided by (used in) financing activities | 3,072 | (1,500) |
Net decrease in cash, cash equivalents, and restricted cash | (3,909) | (18,530) |
Cash, cash equivalents, and restricted cash, beginning of period | 14,226 | 43,506 |
Cash, cash equivalents, and restricted cash, end of period | $ 10,317 | $ 24,976 |
Nature of Operations
Nature of Operations | 3 Months Ended |
May 04, 2019 | |
Disclosure Text Block [Abstract] | |
Nature of Operations [Text Block] | Note 1. Nature of Operations Trans World Entertainment Corporation and subsidiaries (“the Company”) is a specialty retailer of entertainment products, including trend, video, music, electronics and related products in the United States. The Company operates in two reportable segments: fye and etailz. The fye segment operates a chain of retail entertainment stores and e-commerce sites, www.fye.com www.secondspin.com Liquidity and Cash Flows: The Company’s primary sources of liquidity are its borrowing capacity under its revolving credit facility, available cash and cash equivalents, and to a lesser extent, cash generated from operations. Our cash requirements relate primarily to working capital needed to operate and grow our business, including funding operating expenses, the purchase of inventory and capital expenditures. Our ability to achieve profitability and meet future liquidity needs and capital requirements will depend upon numerous factors, including the timing and amount of our revenue; the timing and amount of our operating expenses; the timing and costs of working capital needs; and changes in our strategy or our planned activities. The Company incurred net losses of $7.8 million and $8.1 million for the thirteen weeks ended May 4, 2019 and May 5, 2018, respectively, and has an accumulated deficit of $58.0 million at May 4, 2019. In addition, net cash used in operating activities for the thirteen weeks ended May 4, 2019 was $6.2 million. Net cash used in operating activities for the thirteen weeks ended May 5, 2018 was $16.6 million. As disclosed in the Company’s Annual Report on Form 10-K filed May 14, 2019, the Company experienced negative cash flows from operations during fiscal 2018 and 2017, and we expect to continue to incur net losses in the foreseeable future. We implemented strategic initiatives on December 11, 2018, aimed at improving organizational efficiency and conserving working capital needed to support the growth of our etailz segment (the “performance improvement plan”). As a result of the initiative, and disciplined inventory management in the fye segment, the Company was able to reduce cash used in operations by $10.4 million for the first quarter of fiscal 2019 as compared to the first quarter of fiscal 2018. We anticipate continued improvement in cash flows from operations for the remainder of the fiscal 2019. At May 4, 2019, we had cash and cash equivalents of $3.8 million, net working capital of $49.6 million, and short-term borrowings in the amount of $3.1 million on our revolving credit facility, as further discussed in footnote 8. This compares to $14.5 million in cash and cash equivalents, net working capital of $89.1 million, and no borrowings on the Company’s credit facility at May 5, 2018. Management anticipates any cash requirements due to a shortfall in cash from operations will be funded by the Company’s revolving credit facility. See note 8 in the interim condensed consolidated financial statements for additional information. In addition to the aforementioned current sources of existing working capital, the Company may explore certain other strategic alternatives that may become available to the Company, as well as continuing the efforts to generate additional sales and increase margins. However, at this time the Company has no commitments to obtain any additional funds, and there can be no assurance such funds will be available on acceptable terms or at all, should we require such additional funds. If the Company is unable to improve its operations, it may be required to obtain additional funding, and the Company’s financial condition and results of operations may be materially adversely affected. Furthermore, broad market and industry factors may seriously harm the market price of our common stock, regardless of our operating performance, and may adversely impact our ability to raise additional funds, should we require such additional funds. Similarly, if our common stock is delisted from the NASDAQ Global Market, it may also limit our ability to raise additional funds. The unaudited condensed consolidated financial statements for the thirteen weeks ended May 4, 2019 were prepared on the basis of a going concern which contemplates that the Company will be able to realize assets and discharge liabilities in the normal course of business. The ability of the Company to meet its liabilities and to continue as a going concern is dependent on improved profitability, the performance improvement plan implemented for the etailz segment and the availability of future funding. The unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
May 04, 2019 | |
Disclosure Text Block [Abstract] | |
Basis of Accounting [Text Block] | Note 2. Basis of Presentation The accompanying interim condensed consolidated financial statements consist of Trans World Entertainment Corporation, Record Town, Inc. (“Record Town”), Record Town’s subsidiaries and etailz, Inc., all of which are wholly-owned. All intercompany accounts and transactions have been eliminated. The interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. The information furnished in these unaudited interim condensed consolidated financial statements reflects all normal, recurring adjustments which, in the opinion of management, are necessary for the fair presentation of such financial statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to rules and regulations applicable to interim financial statements. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations as of and for the year ended February 2, 2019 contained in the Company’s Annual Report on Form 10-K filed May 14, 2019. The results of operations for the thirteen weeks ended May 4, 2019 are not necessarily indicative of the results to be expected for the entire fiscal year ending February 1, 2020. As goodwill was fully impaired during fiscal 2018, the Company no longer considers goodwill to be a significant accounting policy. With the exception of goodwill, the Company’s significant accounting policies are the same as those described in Note 1 to the Company’s Consolidated Financial Statements on Form 10-K for the fiscal year ended February 2, 2019. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
May 04, 2019 | |
ASU 2018-12 Transition [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Note 3. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-02, Leases (Topic 842). Lessees are required to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The liability is equal to the present value of lease payments. The asset is based on the liability, subject to certain adjustments, such as for initial direct costs. For income statement purposes, a dual model was retained, requiring leases to be classified as either operating or finance leases. Operating leases result in straight-line expense (similar to operating leases under the prior accounting standard) while finance leases result in a frontloaded expense pattern (similar to capital leases under the prior accounting standard). The Company adopted this new accounting standard on February 3, 2019 on a modified retrospective basis and applied the new standard to all leases greater than one year. As a result, comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which includes, among other things, the ability to carry forward the existing lease classification. The Company does not engage in any Lessor transactions, and as a Lessee, the Company does not have any finance leases. As a result, the new standard had a material impact on the unaudited condensed consolidated balance sheet, but did not materially impact the Company’s consolidated operating results and did not materially impact the Company’s cash flows. The following is a discussion of the Company’s lease policy under the new lease accounting standard: The Company determines if an arrangement contains a lease at the inception of a contract. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments. As the interest rate implicit in the Company’s leases is not readily determinable, the Company utilizes its incremental borrowing rate to discount the lease payments. The operating lease right-of-use assets also include lease payments made before commencement and exclude lease incentives. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet and lease expense is recognized on a straight-line basis over the term of the short-term lease. For real estate leases, the Company accounts for lease components and non-lease components as a single lease component. Certain real estate leases require additional payments based on reimbursement for real estate taxes, common area maintenance and insurance, which are expensed as incurred as variable lease costs. Other real estate leases contain one fixed lease payment that includes real estate taxes, common area maintenance and insurance. These fixed payments are considered part of the lease payment and included in the right-of-use assets and lease liabilities. We elected the following practical expedients permitted under the lease standard: We do not record leases with an initial term of 12 months or less on the balance sheet but continue to expense them on a straight-line basis over the lease term . As of May 4, 2019, 157 leases were short-term in nature and were exempt from being recorded on the balance sheet. The Company leases its 181,300 square foot distribution center/office facility in Albany, New York from an entity controlled by the estate of Robert J. Higgins, its former Chairman and largest shareholder. The distribution center/office lease commenced on January 1, 2016, and expires on December 31, 2020. Under the lease, accounted for as an operating lease, the Company is responsible for monthly payments in the amount of $103 thousand a month. Under the terms of the lease agreement, the Company is also responsible for property taxes and other operating costs with respect to the premises. Impact of New Lease Standard on Balance Sheet Line Items As a result of applying the new lease standard using a modified retrospective method, the following adjustments were made to accounts on the condensed consolidated balance sheet as of February 3, 2019: Impact of Change in Accounting Policy As Reported Adjustments Adjusted ASSETS CURRENT ASSETS Cash and cash equivalents $ 4,355 $ - $ 4,355 Restricted cash 4,126 - 4,126 Accounts receivable 5,383 - 5,383 Merchandise inventory 94,842 - 94,842 Prepaid expenses and other current assets 6,657 (748) 5,909 Total current assets 115,363 (748) 114,615 Restricted cash 5,745 - 5,745 Fixed assets, net 7,529 - 7,529 Operating lease right-of-use assets - 28,044 28,044 Intangible assets, net 3,668 - 3,668 Other assets 5,708 - 5,708 TOTAL ASSETS $ 138,013 $ 27,296 $ 165,309 LIABILITIES CURRENT LIABILITIES Accounts payable $ 34,329 $ - $ 34,329 Accrued expenses and other current liabilities 8,132 (1,319) 6,813 Deferred revenue 6,955 - 6,955 Current portion of operating lease liabilities - 9,064 9,064 Total current liabilities 49,416 7,745 57,161 Operating lease liabilities - 22,728 22,728 Other long-term liabilities 24,867 (3,177) 21,690 TOTAL LIABILITIES 74,283 27,296 101,579 SHAREHOLDERS’ EQUITY Preferred stock ($0.01 par value; 5,000,000 shares authorized; none issued) - - - Common stock ($0.01 par value; 200,000,000 shares authorized; 64,436,671, 64,436,671 and 64,369,171 shares issued, respectively) 644 - 644 Additional paid-in capital 344,214 - 344,214 Treasury stock at cost (28,177,832, 28,177,832 and 28,156,601 shares, respectively) (230,166) - (230,166) Accumulated other comprehensive loss (735) - (735) (Accumulated deficit) Retained earnings (50,227) - (50,227) TOTAL SHAREHOLDERS’ EQUITY 63,730 - 63,730 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 138,013 $ 27,296 $ 165,309 The following table is a summary of the Company’s components of net lease cost for the three months ended May 4, 2019: Lease Cost (amounts in thousands) Classification Three Months Ended Operating lease cost Selling, general and administrative expense (SG&A) $ 4,627 Variable lease cost Selling, general and administrative expense (SG&A) 125 Net lease cost $ 4,752 As of May 4, 2019, future lease payments were as follows: (amounts in thousands) Operating Leases 2019 (remaining nine months) $ 7,859 2020 10,544 2021 7,057 2022 2,923 2023 2,069 Thereafter 2,071 Total lease payments 32,966 Less: amounts representing interest (2,933) Present value of lease liabilities $ 29,590 Lease term and discount rate are as follows: May 4, 2019 Weighted-average remaining lease term (years) Operating leases 1.4 Weighted-average discount rate Operating leases 5 % Other information: Three Months Ended (amounts in thousands) May 4, 2019 Cash paid for amounts included in the measurement of these liabilities Operating cash flows from operating leases $ 2,202 As determined prior to the adoption of the new lease standard, the future minimum lease payments under operating leases in effect as of February 2, 2019 were as follows: (amounts in thousands) 2019 $ 24,426 2020 8,393 2021 5,239 2022 1,881 2023 1,137 Thereafter 1,060 Total minimum lease payments $ 42,136 |
Intangible Assets
Intangible Assets | 3 Months Ended |
May 04, 2019 | |
Disclosure Text Block [Abstract] | |
Intangible Assets Disclosure [Text Block] | Note 4. Intangible Assets The determination of the fair value of intangible assets acquired in a business acquisition, including the Company’s acquisition of etailz in 2016, is subject to many estimates and assumptions. Our identifiable intangible assets that resulted from our acquisition of etailz consist of vendor relationships, technology and tradenames. We review amortizable intangible asset groups for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. During fiscal 2018, the Company concluded, based on continued operating losses for the etailz segment driven by lower than expected operating results culminating in the fourth quarter of fiscal 2018 that a triggering event had occurred, and an evaluation of intangible assets for impairment was required. Intangible assets related to technology and vendor relationships were written down to their estimated fair value at the end of fiscal 2018 resulting in the recognition of asset impairment charges of $16.4 million. Identifiable intangible assets as of May 4, 2019 consisted of the following (amounts in thousands): May 4, 2019 Weighted Average Amortization Period (in months) Original Gross Carrying Amount Accumulated Impairment Accumulated Amortization Net Carrying Amount Vendor relationships 120 $ 19,100 $ 13,822 $ 4,427 $ 851 Technology 60 6,700 2,587 3,175 938 Trade names and trademarks 60 3,200 - 1,607 1,593 $ 29,000 $ 16,409 $ 9,209 $ 3,382 The changes in net intangibles and goodwill from February 2, 2019 to May 4, 2019 were as follows: (amounts in thousands) February 2, 2019 Impairment Expense Amortization Expense May 4, 2019 Amortized intangible assets: Vendor relationships $ 880 $ - $ 29 $ 851 Technology 1,035 - 97 938 Trade names and trademarks 1,753 - 160 1,593 Net amortized intangible assets $ 3,668 $ - $ 286 $ 3,382 Amortization expense of intangible assets for the thirteen weeks ended May 4, 2019 and May 5, 2018 consisted of the following: Thirteen Weeks Ended (amounts in thousands) May 4, 2019 May 5, 2018 Amortized intangible assets: Vendor relationships $ 29 $ 477 Technology 97 335 Trade names and trademarks 160 160 Total amortization expense $ 286 $ 972 Estimated amortization expense for the remainder of fiscal 2019 and the five succeeding fiscal years and thereafter is as follows: Year Annual Amortization (amounts in thousands) 2019 $857 2020 1,143 2021 847 2022 115 2023 115 2024 115 Thereafter 190 |
Depreciation and Amortization
Depreciation and Amortization | 3 Months Ended |
May 04, 2019 | |
Depreciation and Amoritzation [Abstract] | |
Depreciation and Amoritzation [Text Block] | Note 5. Depreciation and Amortization Depreciation and amortization included in selling, general and administrative expenses of the interim condensed consolidated statements of operations for the thirteen weeks ended May 4, 2019 and May 5, 2018 was $1.0 million and $2.2 million, respectively. The $1.2 million decrease was primarily due to a $4.1 million net decrease in carrying value of fixed assets and a $16.4 million net decrease in carrying value of intangible assets, resulting from impairment charges recorded during the fourth quarter of fiscal 2018. For a discussion of the Company’s impairment charges, see “Nature of Operations and Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K as of and for the year ended February 2, 2019. |
Segment Data
Segment Data | 3 Months Ended |
May 04, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 6. Segment Data As described in Note 1 to the interim condensed consolidated financial statements, we operate in two reportable segments as shown in the following table: Thirteen Weeks Ended (amounts in thousands) May 4, May 5, Total Revenue fye $ 45,018 $ 54,063 etailz 35,132 42,540 Total Company $ 80,150 $ 96,603 Gross Profit fye $ 17,502 $ 22,271 etailz 7,888 9,417 Total Company $ 25,390 $ 31,688 Loss From Operations fye $ (6,100) $ (5,372) etailz (1,541) (2,786) Total Company $ (7,641) $ (8,158) Total Assets fye $ 118,734 $ 132,461 etailz 32,288 99,314 Total Company $ 151,022 $ 231,775 |
Restricted Cash
Restricted Cash | 3 Months Ended |
May 04, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Restricted Assets Disclosure [Text Block] | Note 7. Restricted Cash As of May 4, 2019, the Company had restricted cash of $1.0 million and $5.5 million reported in current and other assets on the accompanying interim condensed consolidated balance sheet, respectively. As of May 5, 2018, the Company had restricted cash of $4.1 million and $6.3 million reported in current and other assets on the accompanying interim condensed consolidated balance sheet, respectively. During the first quarter of fiscal 2019, the $3.2 million earn-out escrow balance was returned to the Company as a result of the etailz segment not achieving the earnings target, as described in the amended etailz acquisition share purchase agreement. During the thirteen weeks ended May 5, 2018, the Company paid out $1.5 million of the restricted cash to the etailz shareholders per the terms of the original etailz acquisition share purchase agreement. In addition, as a result of the death of its former Chairman, the Company holds $6.5 million in a rabbi trust, of which $1.0 million is classified as restricted cash in current assets and $5.5 million is classified as restricted cash in other assets on the accompanying interim condensed consolidated balance sheet as of May 4, 2019. A summary of cash, cash equivalents and restricted cash is as follows (amounts in thousands): May 4, February 2, May 5, Cash and cash equivalents $ 3,822 $ 4,355 $ 14,509 Restricted cash 6,495 9,871 10,467 Total cash, cash equivalents and restricted cash $ 10,317 $ 14,226 $ 24,976 |
Short Term Borrowings
Short Term Borrowings | 3 Months Ended |
May 04, 2019 | |
Disclosure Text Block [Abstract] | |
Short-term Debt [Text Block] | Note 8. Short Term Borrowings In January 2017, the Company amended and restated its revolving credit facility (“Credit Facility”). The Credit Facility provides for commitments of $50 million subject to increase up to $75 million during the months of October to December of each year, as needed. The availability under the Credit Facility is subject to limitations based on receivables and inventory levels. The principal amount of all outstanding loans under the Credit Facility together with any accrued but unpaid interest, are due and payable in January 2022, unless otherwise paid earlier pursuant to the terms of the Credit Facility. Payments of amounts due under the Credit Facility are secured by the assets of the Company. During fiscal 2018, the Company exercised the right to increase its availability to $60 million subject to the same limitations noted above. The Credit Facility contains customary affirmative and negative covenants, including restrictions on dividends and share repurchases, incurrence of additional indebtedness and acquisitions and covenants around the net number of store closings and restrictions related to the payment of cash dividends and share repurchases, including limiting the amount of dividends to $5.0 million annually and not allowing borrowings under the amended facility for the six months before or six months after the dividend payment. The Credit Facility also includes customary events of default, including, among other things, material adverse effect, bankruptcy, and certain changes of control. On May 3, 2019, the Company entered into a letter agreement with Wells Fargo in accordance with the Credit Facility in which Wells Fargo provided consent to the Company with respect to late delivery of the Annual Financial Statements. As of May 4, 2019, the Company was compliant with all covenants. Interest under the Credit Facility will accrue, at the election of the Company, at a Base Rate or LIBO Rate, plus, in each case, an Applicable Margin, which is determined by reference to the level of availability, with the Applicable Margin for LIBO Rate loans ranging from 1.75% to 2.00% and the Applicable Margin for Prime Rate loans ranging from 0.75% to 1.00%. In addition, a commitment fee of 0.25% is also payable on unused commitments. As of May 4, 2019, borrowings under the Credit Facility were $3.1 million. As of May 5, 2018, the Company did not have any borrowings under the Credit Facility. The Company had $23.1 million available for borrowing as of May 4, 2019. As of May 4, 2019, the Company did not have any outstanding letters of credit. As of May 5, 2018, the Company had $1.2 million in outstanding letters of credit related to an import purchase. The Company records short term borrowings at cost, in which the carrying value approximates fair value due to its short term maturity. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
May 04, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | Note 9. Stock Based Compensation As of May 4, 2019, there was approximately $0.5 million of unrecognized compensation cost related to stock option awards comprised of the following: $0.4 million was related to stock option awards listed in the table below and expected to be recognized as expense over a weighted average period of 1.2 years; and $0.1 million was related to restricted stock option awards expected to be recognized as expense over a weighted average period of 3.4 years. The Company has outstanding awards under three employee stock award plans, the 2005 Long Term Incentive and Share Award Plan, the Amended and Restated 2005 Long Term Incentive and Share Award Plan (the “Old Plans”); and the 2005 Long Term Incentive and Share Award Plan (as amended and restated April 5, 2017 (the “New Plan”). Collectively, these plans are referred to herein as the Stock Award Plans. Additionally, the Company had a stock award plan for non-employee directors (the “1990 Plan”). The Company no longer issues stock options under the Old Plans or the 1990 Plan. Equity awards authorized for issuance under the New Plan total 5.0 million. As of May 4, 2019, of the awards authorized for issuance under the Stock Award Plans, 2.8 million were granted and are outstanding, 2.0 million of which were vested and exercisable. Shares available for future grants of options and other share based awards under the New Plan at May 4, 2019 were 4.4 million. The following table summarizes stock award activity during the thirteen weeks ended May 4, 2019: Employee and Director Stock Award Plans Number of Weighted Weighted Other Weighted Balance February 2, 2019 2,778,414 $ 2.75 5.8 271,411 $ 1.68 Granted - - - - - Canceled - - - - - Exercised - - - - - Balance May 4, 2019 2,778,414 $ 2.75 5.5 271,411 $ 1.68 Exercisable May 4, 2019 2,017,164 $ 3.02 4.5 132,661 $ 2.77 (1) Other Share Awards include deferred shares granted to Directors and restricted share units granted to executive officers. As of May 4, 2019, all stock awards outstanding and exercisable had a grant price higher than the market price of the stock and had no intrinsic value. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
May 04, 2019 | |
Disclosure Text Block [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Note 10. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss that the Company reports in the interim condensed consolidated balance sheets represents net loss, adjusted for the difference between the accrued pension liability and accrued benefit cost, net of taxes, associated with the Company’s defined benefit plan. Comprehensive loss consists of net loss and the amortization of pension gains associated with Company’s defined benefit plan for the thirteen weeks ended May 4, 2019 and May 5, 2018. |
Defined Benefit Plans
Defined Benefit Plans | 3 Months Ended |
May 04, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | Note 11. Defined Benefit Plan The Company maintains a non-qualified Supplemental Executive Retirement Plan (“SERP”) for certain executive officers of the Company. The SERP provides eligible executives defined pension benefits that supplement benefits under other retirement arrangements. During the thirteen weeks ended May 4, 2019, the Company did not make any cash contributions to the SERP and presently expects to pay approximately $1.2 million in benefits relating to the SERP during fiscal 2019. The measurement date for the SERP is the fiscal year end, using actuarial techniques which reflect estimates for mortality, turnover and expected retirement. In addition, management makes assumptions concerning future salary increases. Discount rates are generally established as of the measurement date using theoretical bond models that select high-grade corporate bonds with maturities or coupons that correlate to the expected payouts of the applicable liabilities. The following represents the components of the net periodic pension cost related to the Company’s SERP for the respective periods: Thirteen Weeks Ended (amounts in thousands) May 4, May 5, Service cost $14 $14 Interest cost 142 140 Amortization of net gain (1) (5) (5) Net periodic pension cost $151 $149 ( 1) The amortization of net gain is related to a director retirement plan previously provided by the Company. |
Basic and Diluted Loss Per Shar
Basic and Diluted Loss Per Share | 3 Months Ended |
May 04, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 12. Basic and Diluted Loss Per Share Basic loss per share is calculated by dividing net loss by the weighted average common shares outstanding for the period. Diluted loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock (net of any assumed repurchases) that then shared in the earnings of the Company, if any. It is computed by dividing net loss by the sum of the weighted average shares outstanding and additional common shares that would have been outstanding if the dilutive potential common shares had been issued for the Company’s common stock awards from the Company’s Stock Award Plans. For the thirteen week periods ended May 4, 2019 and May 5, 2018, the impact of all outstanding stock awards was not considered because the Company reported net losses in both periods and such impact would be anti-dilutive. Accordingly, basic and diluted loss per share was the same. Total anti-dilutive stock awards for the thirteen weeks ended May 4, 2019 and May 5, 2018 were approximately 3.0 million shares and 2.6 million shares, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
May 04, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 13. Income Taxes In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income. Management considers the scheduled reversal of taxable temporary differences, projected future taxable income and tax planning strategies in making this assessment. Based on available objective evidence, management concluded that a full valuation allowance should continue to be recorded against the Company's deferred tax assets. Management will continue to assess the need for and amount of the valuation allowance against the deferred tax assets by giving consideration to all available evidence to the Company’s ability to generate future taxable income in its conclusion of the need for a full valuation allowance. Any reversal of the Company’s valuation allowance will favorably impact its results of operations in the period of reversal. The Company is currently unable to determine whether or when that reversal might occur, but it will continue to assess the realizability of its deferred tax assets and will adjust the valuation allowance if it is more likely than not that all or a portion of the deferred tax assets will become realizable in the future. The Company has significant net operating loss carry forwards and other tax attributes that are available to offset projected taxable income and current taxes payable, if any, for the year ending February 1, 2020. The deferred tax impact resulting from the utilization of the net operating loss carry forwards and other tax attributes will be offset by a reduction in the valuation allowance. As of February 2, 2019, the Company had a net operating loss carry forward of $253.5 million for federal income tax purposes and approximately $289.0 million for state income tax purposes that expire at various times through 2038 and are subject to certain limitations and statutory expiration periods. The Company has not changed its overall conclusion with respect to the need for a valuation allowance against its net deferred tax assets, which remain fully reserved. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
May 04, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 14. Commitments and Contingencies Legal Proceedings The Company is subject to legal proceedings and claims that have arisen in the ordinary course of its business and have not been finally adjudicated. Although there can be no assurance as to the ultimate disposition of these matters, it is management’s opinion, based upon the information available at this time, that the expected outcome of these matters, individually and in the aggregate, will not have a material adverse effect on the results of operations and financial condition of the Company. As a result, the liability for the cases listed below is remote. Loyalty Memberships and Magazine Subscriptions Class Action On November 14, 2018, three consumers filed a punitive class action complaint against the Company and Synapse Group, Inc. in the United States District Court for the District of Massachusetts, Boston Division (Case No.1:18-cv-12377-DPW) concerning enrollment in the Company’s Backstage Pass VIP loyalty program and associated magazine subscriptions. The complaint alleged, among other things, that the Company’s “negative option marketing” misled consumers into enrolling for membership and subscriptions without obtaining the consumers’ consent. The complaint sought to represent a nationwide class of “all persons in the United States” who were enrolled in and/or charged for Backstage Pass VIP memberships and/or magazine subscriptions, and to obtain statutory and actual damages on their behalf. On April 11, 2019, the plaintiffs voluntarily dismissed their lawsuit. On May 8, 2019, two of the plaintiffs from the dismissed lawsuit filed a similar punitive class action in Massachusetts state court (Civ. Act. No. 197CV00331, Mass. Super. Ct. Hampden Cty.), based on the same allegations, but this time seeking to represent only a class of “FYE customers in Massachusetts” who were charged for VIP Backstage Pass Memberships and/or magazine subscriptions. The Company believes it has meritorious defenses to the plaintiffs’ claims and, if the new case is not dismissed in full, the Company intends to vigorously defend the action. Store Manager Class Actions There are two pending class actions. The first, Spack v. Trans World Entertainment Corp. was originally filed in the District of New Jersey, April 2017 (the “Spack Action”). The Spack Action alleges that the Company misclassified Store Managers (“SMs”) as exempt nationwide. It also alleges that Trans World improperly calculated overtime for Senior Assistant Managers “SAMs” nationwide, and that both SMs and SAMs worked “off-the-clock.” It also alleges violations of New Jersey and Pennsylvania State Law with respect to calculating overtime for SAMs. The second, Roper v. Trans World Entertainment Corp., was filed in the Northern District of New York, May 2017 (the “Roper Action”). The Roper Action also asserts a nationwide misclassification claim on behalf of Store Managers. Both actions were consolidated into the Northern District of New York, with the Spack Action being the lead case. Plaintiffs moved for conditional certification of a collective of SMs in June 2018, and that motion was partially granted in January 2019. The opt-in period for the collective that was certified was closed on April 6, 2019. Opt-in discovery relating to that potential collective has commenced. The Company believes it has meritorious defenses to the plaintiffs’ claims and intends to vigorously defend the action. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) - Adjustments for New Accounting Pronouncement [Member] | 3 Months Ended |
May 04, 2019 | |
Recent Accounting Pronouncements (Tables) [Line Items] | |
Condensed Balance Sheet [Table Text Block] | As a result of applying the new lease standard using a modified retrospective method, the following adjustments were made to accounts on the condensed consolidated balance sheet as of February 3, 2019: Impact of Change in Accounting Policy As Reported Adjustments Adjusted ASSETS CURRENT ASSETS Cash and cash equivalents $ 4,355 $ - $ 4,355 Restricted cash 4,126 - 4,126 Accounts receivable 5,383 - 5,383 Merchandise inventory 94,842 - 94,842 Prepaid expenses and other current assets 6,657 (748) 5,909 Total current assets 115,363 (748) 114,615 Restricted cash 5,745 - 5,745 Fixed assets, net 7,529 - 7,529 Operating lease right-of-use assets - 28,044 28,044 Intangible assets, net 3,668 - 3,668 Other assets 5,708 - 5,708 TOTAL ASSETS $ 138,013 $ 27,296 $ 165,309 LIABILITIES CURRENT LIABILITIES Accounts payable $ 34,329 $ - $ 34,329 Accrued expenses and other current liabilities 8,132 (1,319) 6,813 Deferred revenue 6,955 - 6,955 Current portion of operating lease liabilities - 9,064 9,064 Total current liabilities 49,416 7,745 57,161 Operating lease liabilities - 22,728 22,728 Other long-term liabilities 24,867 (3,177) 21,690 TOTAL LIABILITIES 74,283 27,296 101,579 SHAREHOLDERS’ EQUITY Preferred stock ($0.01 par value; 5,000,000 shares authorized; none issued) - - - Common stock ($0.01 par value; 200,000,000 shares authorized; 64,436,671, 64,436,671 and 64,369,171 shares issued, respectively) 644 - 644 Additional paid-in capital 344,214 - 344,214 Treasury stock at cost (28,177,832, 28,177,832 and 28,156,601 shares, respectively) (230,166) - (230,166) Accumulated other comprehensive loss (735) - (735) (Accumulated deficit) Retained earnings (50,227) - (50,227) TOTAL SHAREHOLDERS’ EQUITY 63,730 - 63,730 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 138,013 $ 27,296 $ 165,309 |
Schedule of Components of Leveraged Lease Investments [Table Text Block] | The following table is a summary of the Company’s components of net lease cost for the three months ended May 4, 2019: (amounts in thousands) Classification Three Months Ended Operating lease cost Selling, general and administrative expense (SG&A) $ 4,627 Variable lease cost Selling, general and administrative expense (SG&A) 125 Net lease cost $ 4,752 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As of May 4, 2019, future lease payments were as follows: (amounts in thousands) Operating Leases 2019 (remaining nine months) $ 7,859 2020 10,544 2021 7,057 2022 2,923 2023 2,069 Thereafter 2,071 Total lease payments 32,966 Less: amounts representing interest (2,933) Present value of lease liabilities $ 29,590 (amounts in thousands) 2019 $ 24,426 2020 8,393 2021 5,239 2022 1,881 2023 1,137 Thereafter 1,060 Total minimum lease payments $ 42,136 |
Lessee, Operating Lease, Disclosure [Table Text Block] | Lease term and discount rate are as follows: May 4, 2019 Weighted-average remaining lease term (years) Operating leases 1.4 Weighted-average discount rate Operating leases 5 % |
Operating Lease, Lease Income [Table Text Block] | Other information: Three Months Ended (amounts in thousands) May 4, 2019 Cash paid for amounts included in the measurement of these liabilities Operating cash flows from operating leases $ 2,202 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
May 04, 2019 | |
Disclosure Text Block [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Identifiable intangible assets as of May 4, 2019 consisted of the following (amounts in thousands): May 4, 2019 Weighted Average Amortization Period (in months) Original Gross Carrying Amount Accumulated Impairment Accumulated Amortization Net Carrying Amount Vendor relationships 120 $ 19,100 $ 13,822 $ 4,427 $ 851 Technology 60 6,700 2,587 3,175 938 Trade names and trademarks 60 3,200 - 1,607 1,593 $ 29,000 $ 16,409 $ 9,209 $ 3,382 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | The changes in net intangibles and goodwill from February 2, 2019 to May 4, 2019 were as follows: (amounts in thousands) February 2, 2019 Impairment Expense Amortization Expense May 4, 2019 Amortized intangible assets: Vendor relationships $ 880 $ - $ 29 $ 851 Technology 1,035 - 97 938 Trade names and trademarks 1,753 - 160 1,593 Net amortized intangible assets $ 3,668 $ - $ 286 $ 3,382 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Amortization expense of intangible assets for the thirteen weeks ended May 4, 2019 and May 5, 2018 consisted of the following: Thirteen Weeks Ended (amounts in thousands) May 4, 2019 May 5, 2018 Amortized intangible assets: Vendor relationships $ 29 $ 477 Technology 97 335 Trade names and trademarks 160 160 Total amortization expense $ 286 $ 972 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated amortization expense for the remainder of fiscal 2019 and the five succeeding fiscal years and thereafter is as follows: Year Annual Amortization (amounts in thousands) 2019 $857 2020 1,143 2021 847 2022 115 2023 115 2024 115 Thereafter 190 |
Segment Data (Tables)
Segment Data (Tables) | 3 Months Ended |
May 04, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | As described in Note 1 to the interim condensed consolidated financial statements, we operate in two reportable segments as shown in the following table: Thirteen Weeks Ended (amounts in thousands) May 4, May 5, Total Revenue fye $ 45,018 $ 54,063 etailz 35,132 42,540 Total Company $ 80,150 $ 96,603 Gross Profit fye $ 17,502 $ 22,271 etailz 7,888 9,417 Total Company $ 25,390 $ 31,688 Loss From Operations fye $ (6,100) $ (5,372) etailz (1,541) (2,786) Total Company $ (7,641) $ (8,158) Total Assets fye $ 118,734 $ 132,461 etailz 32,288 99,314 Total Company $ 151,022 $ 231,775 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 3 Months Ended |
May 04, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Restrictions on Cash and Cash Equivalents [Table Text Block] | A summary of cash, cash equivalents and restricted cash is as follows (amounts in thousands): May 4, February 2, May 5, Cash and cash equivalents $ 3,822 $ 4,355 $ 14,509 Restricted cash 6,495 9,871 10,467 Total cash, cash equivalents and restricted cash $ 10,317 $ 14,226 $ 24,976 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
May 04, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable [Table Text Block] | The following table summarizes stock award activity during the thirteen weeks ended May 4, 2019: Employee and Director Stock Award Plans Number of Weighted Weighted Other Weighted Balance February 2, 2019 2,778,414 $ 2.75 5.8 271,411 $ 1.68 Granted - - - - - Canceled - - - - - Exercised - - - - - Balance May 4, 2019 2,778,414 $ 2.75 5.5 271,411 $ 1.68 Exercisable May 4, 2019 2,017,164 $ 3.02 4.5 132,661 $ 2.77 (1) Other Share Awards include deferred shares granted to Directors and restricted share units granted to executive officers. |
Defined Benefit Plans (Tables)
Defined Benefit Plans (Tables) | 3 Months Ended |
May 04, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | The following represents the components of the net periodic pension cost related to the Company’s SERP for the respective periods: Thirteen Weeks Ended (amounts in thousands) May 4, May 5, Service cost $14 $14 Interest cost 142 140 Amortization of net gain (1) (5) (5) Net periodic pension cost $151 $149 ( 1) The amortization of net gain is related to a director retirement plan previously provided by the Company. |
Nature of Operations (Details)
Nature of Operations (Details) ft² in Millions | 3 Months Ended | ||
May 04, 2019USD ($)ft² | May 05, 2018USD ($) | Feb. 02, 2019USD ($) | |
Disclosure Text Block [Abstract] | |||
Number of Reportable Segments | 2 | ||
Number of Stores | 206 | ||
Area of Stores (in Square Feet) | ft² | 1.1 | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 7,800,000 | $ 8,100,000 | |
Retained Earnings (Accumulated Deficit) | (58,029,000) | 39,008,000 | $ (50,227,000) |
Net Cash Provided by (Used in) Operating Activities | (6,182,000) | (16,621,000) | |
Increase (Decrease) in Operating Capital | 10,400,000 | ||
Cash and Cash Equivalents, at Carrying Value | 3,822,000 | 14,509,000 | $ 4,355,000 |
Broker-Dealer, Net Capital | 49,600,000 | 89,100,000 | |
Other Short-term Borrowings | $ 3,100,000 | $ 0 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Details) $ in Thousands | 3 Months Ended |
May 04, 2019USD ($)ft² | |
Recent Accounting Pronouncements (Details) [Line Items] | |
Number of Real Estate Properties | 157 |
Area of Real Estate Property | ft² | 181,300 |
Operating Leases, Monthly Rent Expense | $ | $ 103 |
Accounting Standards Update 2016-02 [Member] | |
Recent Accounting Pronouncements (Details) [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In February 2016, the Financial Accounting Standards Board (the“FASB”) issued ASU 2016-02, Leases (Topic 842). Lessees are required to recognize a right-of-use asset and a leaseliability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The liability isequal to the present value of lease payments. The asset is based on the liability, subject to certain adjustments, such as forinitial direct costs. For income statement purposes, a dual model was retained, requiring leases to be classified as either operatingor finance leases. Operating leases result in straight-line expense (similar to operating leases under the prior accounting standard)while finance leases result in a frontloaded expense pattern (similar to capital leases under the prior accounting standard).The Company adopted this new accounting standard on February3, 2019 on a modified retrospective basis and applied the new standard to all leases greater than one year. As a result, comparativefinancial information has not been restated and continues to be reported under the accounting standards in effect for those periods.The Company elected the package of practical expedients permitted under the transition guidance within the new standard, whichincludes, among other things, the ability to carry forward the existing lease classification. The Company does not engage in anyLessor transactions, and as a Lessee, the Company does not have any finance leases. As a result, the new standard had a materialimpact on the unaudited condensed consolidated balance sheet, but did not materially impact the Company’s consolidated operatingresults and did not materially impact the Company’s cash flows. |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements (Details) - Impact of New Lease Standard on Balance Sheet Line Items - Property Subject to Operating Lease [Member] - USD ($) $ in Thousands | Feb. 03, 2019 | Feb. 02, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 4,355 | $ 4,355 |
Restricted cash | 4,126 | 4,126 |
Accounts receivable | 5,383 | 5,383 |
Merchandise inventory | 94,842 | 94,842 |
Prepaid expenses and other current assets | 5,909 | 6,657 |
Total current assets | 114,615 | 115,363 |
Restricted cash | 5,745 | 5,745 |
Fixed assets, net | 7,529 | 7,529 |
Operating lease right-of-use assets | 28,044 | |
Intangible assets, net | 3,668 | 3,668 |
Other assets | 5,708 | 5,708 |
TOTAL ASSETS | 165,309 | 138,013 |
CURRENT LIABILITIES | ||
Accounts payable | 34,329 | 34,329 |
Accrued expenses and other current liabilities | 6,813 | 8,132 |
Deferred revenue | 6,955 | 6,955 |
Current portion of operating lease liabilities | 9,064 | |
Total current liabilities | 57,161 | 49,416 |
Operating lease liabilities | 22,728 | |
Other long-term liabilities | 21,690 | 24,867 |
TOTAL LIABILITIES | 101,579 | 74,283 |
SHAREHOLDERS’ EQUITY | ||
Common stock ($0.01 par value; 200,000,000 shares authorized; 64,436,671, 64,436,671 and 64,369,171 shares issued, respectively) | 644 | 644 |
Additional paid-in capital | 344,214 | 344,214 |
Treasury stock at cost (28,177,832, 28,177,832 and 28,156,601 shares, respectively) | (230,166) | (230,166) |
Accumulated other comprehensive loss | (735) | (735) |
(Accumulated deficit) Retained earnings | (50,227) | (50,227) |
TOTAL SHAREHOLDERS’ EQUITY | 63,730 | 63,730 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 165,309 | 138,013 |
Adjustments for New Lease Standard | ||
CURRENT ASSETS | ||
Prepaid expenses and other current assets | (748) | |
Total current assets | (748) | |
Operating lease right-of-use assets | 28,044 | |
TOTAL ASSETS | 27,296 | |
CURRENT LIABILITIES | ||
Accrued expenses and other current liabilities | (1,319) | |
Current portion of operating lease liabilities | 9,064 | |
Total current liabilities | 7,745 | |
Operating lease liabilities | 22,728 | |
Other long-term liabilities | (3,177) | |
TOTAL LIABILITIES | 27,296 | |
SHAREHOLDERS’ EQUITY | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 27,296 |
Recent Accounting Pronounceme_5
Recent Accounting Pronouncements (Details) - Impact of New Lease Standard on Balance Sheet Line Items (Parentheticals) - Property Subject to Operating Lease [Member] - $ / shares | Feb. 03, 2019 | Feb. 02, 2019 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Preferred stock par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 64,369,171 | 64,436,671 |
Treasury stock at cost shares issued | 28,156,601 | 28,177,832 |
Recent Accounting Pronounceme_6
Recent Accounting Pronouncements (Details) - Schedule of Components of Lease Costs $ in Thousands | 3 Months Ended |
May 04, 2019USD ($) | |
Schedule of Components of Lease Costs [Abstract] | |
Operating lease cost | $ 4,627 |
Variable lease cost | 125 |
Net lease cost | $ 4,752 |
Recent Accounting Pronounceme_7
Recent Accounting Pronouncements (Details) - Schedule of Future Operating Lease Payments - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2019 | Feb. 02, 2019 | |
Recent Accounting Pronouncements (Details) - Schedule of Future Operating Lease Payments [Line Items] | ||
2019 | $ 24,426 | |
2020 | 8,393 | |
2021 | 5,239 | |
2022 | 1,881 | |
2023 | 1,137 | |
Thereafter | 1,060 | |
Total minimum lease payments | $ 42,136 | |
Present value of lease liabilities | $ 9,179 | |
Adjustments for New Accounting Pronouncement [Member] | ||
Recent Accounting Pronouncements (Details) - Schedule of Future Operating Lease Payments [Line Items] | ||
2019 | 7,859 | |
2020 | 10,544 | |
2021 | 7,057 | |
2022 | 2,923 | |
2023 | 2,069 | |
Thereafter | 2,071 | |
Total lease payments | 32,966 | |
Less: amounts representing interest | (2,933) | |
Present value of lease liabilities | $ 29,590 |
Recent Accounting Pronounceme_8
Recent Accounting Pronouncements (Details) - Schedule of Lease Term and Discount Rate | May 04, 2019 |
Weighted-average remaining lease term (years) | |
Weighted-average remaining lease term (years), Operating leases | 1 year 146 days |
Weighted-average discount rate | |
Weighted-average discount rate, Operating leases | 5.00% |
Recent Accounting Pronounceme_9
Recent Accounting Pronouncements (Details) - Schedule of Other Information $ in Thousands | 3 Months Ended |
May 04, 2019USD ($) | |
Cash paid for amounts included in the measurement of these liabilities | |
Operating cash flows from operating leases | $ 2,202 |
Intangible Assets (Details)
Intangible Assets (Details) $ in Millions | 12 Months Ended |
Feb. 02, 2019USD ($) | |
etailz [Member] | |
Intangible Assets (Details) [Line Items] | |
Asset Impairment Charges | $ 16.4 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of Identifiable Intangible Assets $ in Thousands | 3 Months Ended |
May 04, 2019USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Original Gross Carrying Amount | $ 29,000 |
Accumulated Impairment | 16,409 |
Accumulated Amortization | 9,209 |
Net Carrying Amount | $ 3,382 |
Vendor Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (in months) | 120 months |
Original Gross Carrying Amount | $ 19,100 |
Accumulated Impairment | 13,822 |
Accumulated Amortization | 4,427 |
Net Carrying Amount | $ 851 |
Technology-Based Intangible Assets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (in months) | 60 months |
Original Gross Carrying Amount | $ 6,700 |
Accumulated Impairment | 2,587 |
Accumulated Amortization | 3,175 |
Net Carrying Amount | $ 938 |
Trademarks and Trade Names [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period (in months) | 60 months |
Original Gross Carrying Amount | $ 3,200 |
Accumulated Amortization | 1,607 |
Net Carrying Amount | $ 1,593 |
Intangible Assets (Details) -_2
Intangible Assets (Details) - Schedule of Changes in Net Intangibles and Goodwill - USD ($) $ in Thousands | 3 Months Ended | ||
May 04, 2019 | May 05, 2018 | Feb. 02, 2019 | |
Amortized intangible assets: | |||
Impaired and amortized intangible assets | $ 3,382 | $ 3,668 | |
Amortization of intangible assets | 286 | $ 972 | |
Vendor Relationships [Member] | |||
Amortized intangible assets: | |||
Impaired and amortized intangible assets | 851 | 880 | |
Amortization of intangible assets | 29 | 477 | |
Technology [Member] | |||
Amortized intangible assets: | |||
Impaired and amortized intangible assets | 938 | 1,035 | |
Amortization of intangible assets | 97 | 335 | |
Trademarks and Trade Names [Member] | |||
Amortized intangible assets: | |||
Impaired and amortized intangible assets | 1,593 | $ 1,753 | |
Amortization of intangible assets | $ 160 | $ 160 |
Intangible Assets (Details) -_3
Intangible Assets (Details) - Schedule of Amortization Expense of Intangible Assets - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Amortized intangible assets: | ||
Amortized intangible assets: | $ 286 | $ 972 |
Vendor Relationships [Member] | ||
Amortized intangible assets: | ||
Amortized intangible assets: | 29 | 477 |
Technology [Member] | ||
Amortized intangible assets: | ||
Amortized intangible assets: | 97 | 335 |
Trademarks and Trade Names [Member] | ||
Amortized intangible assets: | ||
Amortized intangible assets: | $ 160 | $ 160 |
Intangible Assets (Details) -_4
Intangible Assets (Details) - Schedule of Estimated Amortization Expense $ in Thousands | May 04, 2019USD ($) |
Schedule of Estimated Amortization Expense [Abstract] | |
2019 | $ 857 |
2020 | 1,143 |
2021 | 847 |
2022 | 115 |
2023 | 115 |
2024 | 115 |
Thereafter | $ 190 |
Depreciation and Amortization (
Depreciation and Amortization (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Depreciation and Amoritzation [Abstract] | ||
Other Depreciation and Amortization | $ 1 | $ 2.2 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment, Period Increase (Decrease) | 1.2 | |
Property, Plant and Equipment, Gross, Period Increase (Decrease) | 4.1 | |
Increase (Decrease) in Intangible Assets, Current | $ 16.4 |
Segment Data (Details)
Segment Data (Details) | 3 Months Ended |
May 04, 2019 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Segment Data (Details) - Schedu
Segment Data (Details) - Schedule of Reporting Segements - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
fye [Member] | ||
Total Revenue | ||
Total Revenue | $ 45,018 | $ 54,063 |
Gross Profit | ||
Gross Profit | 17,502 | 22,271 |
Loss From Operations | ||
Income (Loss) From Operations | (6,100) | (5,372) |
Total Assets | ||
Total Assets | 118,734 | 132,461 |
etailz [Member] | ||
Total Revenue | ||
Total Revenue | 35,132 | 42,540 |
Gross Profit | ||
Gross Profit | 7,888 | 9,417 |
Loss From Operations | ||
Income (Loss) From Operations | (1,541) | (2,786) |
Total Assets | ||
Total Assets | 32,288 | 99,314 |
Total Company [Member] | ||
Total Revenue | ||
Total Revenue | 80,150 | 96,603 |
Gross Profit | ||
Gross Profit | 25,390 | 31,688 |
Loss From Operations | ||
Income (Loss) From Operations | (7,641) | (8,158) |
Total Assets | ||
Total Assets | $ 151,022 | $ 231,775 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Restricted Cash (Details) [Line Items] | |||
Restricted Cash and Cash Equivalents, Current | $ 1,000 | $ 4,100 | |
Restricted Cash and Cash Equivalents, Noncurrent | 5,500 | 6,300 | |
Restricted Cash | 950 | $ 4,126 | 4,113 |
In Connection With Acquisition of etailz [Member] | |||
Restricted Cash (Details) [Line Items] | |||
Escrow Deposit | 3,200 | ||
Restricted Cash | $ 1,500 | ||
As a Result of Death of Chairman [Member] | |||
Restricted Cash (Details) [Line Items] | |||
Restricted Cash and Cash Equivalents, Current | 1,000 | ||
Restricted Cash and Cash Equivalents, Noncurrent | 5,500 | ||
Assets Held-in-trust | $ 6,500 |
Restricted Cash (Details) - Sch
Restricted Cash (Details) - Schedule of Cash, Cash Equivalents, and Restricted Cash - USD ($) $ in Thousands | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 | Feb. 02, 2018 |
Schedule of Cash, Cash Equivalents, and Restricted Cash [Abstract] | ||||
Cash and cash equivalents | $ 3,822 | $ 4,355 | $ 14,509 | |
Restricted cash | 6,495 | 9,871 | 10,467 | |
Total cash, cash equivalents and restricted cash | $ 10,317 | $ 14,226 | $ 24,976 | $ 43,506 |
Short Term Borrowings (Details)
Short Term Borrowings (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 04, 2019 | Feb. 02, 2019 | May 05, 2018 | |
Short Term Borrowings (Details) [Line Items] | |||
Line of Credit Facility, Current Borrowing Capacity | $ 50 | $ 60 | |
Dividends and Share Repurchase Maximum | 5 | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 3.1 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 23.1 | ||
Letters of Credit Outstanding, Amount | $ 1.2 | ||
Increased Maximum During Months of October, November, and December [Member] | |||
Short Term Borrowings (Details) [Line Items] | |||
Line of Credit Facility, Current Borrowing Capacity | $ 75 | ||
Credit Facility [Member] | |||
Short Term Borrowings (Details) [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | ||
Credit Facility [Member] | LIBOR Rate [Member] | Minimum [Member] | |||
Short Term Borrowings (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||
Credit Facility [Member] | LIBOR Rate [Member] | Maximum [Member] | |||
Short Term Borrowings (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||
Credit Facility [Member] | Prime Rate [Member] | Minimum [Member] | |||
Short Term Borrowings (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||
Credit Facility [Member] | Prime Rate [Member] | Maximum [Member] | |||
Short Term Borrowings (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Stock Based Compensation (Detai
Stock Based Compensation (Details) shares in Millions, $ in Millions | 3 Months Ended |
May 04, 2019USD ($)shares | |
Stock Based Compensation (Details) [Line Items] | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount (in Dollars) | $ | $ 0.4 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 5 |
Share Based Compensation Arrangement By Share Based Payment Award Options And Other Than Options Outstanding Number | 2.8 |
Share Based Compensation Arrangement By Share Based Payment Award Options And Other Than Options Vested And Expected To Vest Exercisable Number | 2 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 4.4 |
Share-based Payment Arrangement, Option [Member] | |
Stock Based Compensation (Details) [Line Items] | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount (in Dollars) | $ | $ 0.5 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 73 days |
Restricted Stock [Member] | |
Stock Based Compensation (Details) [Line Items] | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount (in Dollars) | $ | $ 0.1 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years 146 days |
Stock Based Compensation (Det_2
Stock Based Compensation (Details) - Schedule of Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | 3 Months Ended | |
May 04, 2019$ / sharesshares | ||
Schedule of Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Abstract] | ||
Balance February 2, 2019 | 2,778,414 | |
Balance February 2, 2019 (in Dollars per share) | $ / shares | $ 2.75 | |
Balance February 2, 2019 | 5 years 292 days | |
Balance February 2, 2019 | 271,411 | [1] |
Balance February 2, 2019 (in Dollars per share) | $ / shares | $ 1.68 | |
Balance May 4, 2019 | 2,778,414 | |
Balance May 4, 2019 (in Dollars per share) | $ / shares | $ 2.75 | |
Balance May 4, 2019 | 5 years 6 months | |
Balance May 4, 2019 | 271,411 | [1] |
Balance May 4, 2019 (in Dollars per share) | $ / shares | $ 1.68 | |
Exercisable May 4, 2019 | 2,017,164 | |
Exercisable May 4, 2019 (in Dollars per share) | $ / shares | $ 3.02 | |
Exercisable May 4, 2019 | 4 years 6 months | |
Exercisable May 4, 2019 | 132,661 | [1] |
Exercisable May 4, 2019 (in Dollars per share) | $ / shares | $ 2.77 | |
Exercised | [1] | |
[1] | Other Share Awards include deferred shares granted to Directors and restricted share units granted to executive officers. |
Defined Benefit Plans (Details)
Defined Benefit Plans (Details) $ in Millions | May 04, 2019USD ($) |
Supplemental Employee Retirement Plan [Member] | |
Defined Benefit Plans (Details) [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 1.2 |
Defined Benefit Plans (Detail_2
Defined Benefit Plans (Details) - Schedule Components of Net Periodic Benefit Cost and Other Comprehensive Income Loss - USD ($) $ in Thousands | 3 Months Ended | ||
May 04, 2019 | May 05, 2018 | ||
Schedule Components of Net Periodic Benefit Cost and Other Comprehensive Income Loss [Abstract] | |||
Service cost | $ 14 | $ 14 | |
Interest cost | 142 | 140 | |
Amortization of net gain | [1] | (5) | (5) |
Net periodic pension cost | $ 151 | $ 149 | |
[1] | The amortization of net gain is related to a director retirement plan previously provided by the Company. |
Basic and Diluted Loss Per Sh_2
Basic and Diluted Loss Per Share (Details) - shares shares in Millions | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3 | 2.6 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | Feb. 02, 2019USD ($) |
Domestic Tax Authority [Member] | |
Income Taxes (Details) [Line Items] | |
Operating Loss Carryforwards | $ 253.5 |
State and Local Jurisdiction [Member] | |
Income Taxes (Details) [Line Items] | |
Operating Loss Carryforwards | $ 289 |
Tax Credit Carryforward Expiration Year | 2038 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Nov. 14, 2018 | Apr. 20, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Description of Filed Claim | On November 14, 2018, three consumers fileda punitive class action complaint against the Company and Synapse Group, Inc. in the United States District Court for the Districtof Massachusetts, Boston Division (Case No.1:18-cv-12377-DPW) concerning enrollment in the Company’s Backstage Pass VIP loyaltyprogram and associated magazine subscriptions. The complaint alleged, among other things, that the Company’s “negativeoption marketing” misled consumers into enrolling for membership and subscriptions without obtaining the consumers’consent. The complaint sought to represent a nationwide class of “all persons in the United States” who were enrolledin and/or charged for Backstage Pass VIP memberships and/or magazine subscriptions, and to obtain statutory and actual damageson their behalf.  | There are two pending class actions. The first, Spackv. Trans World Entertainment Corp. was originally filed in the District of New Jersey, April 2017 (the “Spack Action”). TheSpack Action alleges that the Company misclassified Store Managers (“SMs”) as exempt nationwide. It also allegesthat Trans World improperly calculated overtime for Senior Assistant Managers “SAMs” nationwide, and that both SMsand SAMs worked “off-the-clock.” It also alleges violations of New Jersey and Pennsylvania State Law with respectto calculating overtime for SAMs. The second, Roper v. Trans World Entertainment Corp., was filed in the Northern Districtof New York, May 2017 (the “Roper Action”). The Roper Action also asserts a nationwide misclassification claimon behalf of Store Managers. Both actions were consolidated into the Northern District of New York, with the Spack Actionbeing the lead case. |