Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 30, 2021 | Nov. 12, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | DXLG | |
Entity Registrant Name | DESTINATION XL GROUP, INC. | |
Entity Central Index Key | 0000813298 | |
Current Fiscal Year End Date | --01-29 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 63,254,046 | |
Entity File Number | 01-34219 | |
Entity Tax Identification Number | 04-2623104 | |
Entity Address, Address Line One | 555 Turnpike Street | |
Entity Address, City or Town | Canton | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02021 | |
City Area Code | 781 | |
Local Phone Number | 828-9300 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Oct. 30, 2021 | Jan. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 6,937 | $ 18,997 |
Accounts receivable | 1,604 | 6,416 |
Inventories | 82,284 | 85,028 |
Prepaid expenses and other current assets | 6,926 | 3,689 |
Total current assets | 97,751 | 114,130 |
Non-current assets: | ||
Property and equipment, net of accumulated depreciation and amortization | 45,769 | 56,552 |
Operating lease right-of-use assets | 118,684 | 134,321 |
Intangible assets | 1,150 | 1,150 |
Other assets | 567 | 602 |
Total assets | 263,921 | 306,755 |
Current liabilities: | ||
Accounts payable | 29,765 | 27,091 |
Accrued expenses and other current liabilities | 32,753 | 24,825 |
Operating leases, current | 37,150 | 43,598 |
Borrowings under credit facility | 59,521 | |
Total current liabilities | 99,668 | 155,035 |
Long-term liabilities: | ||
Long-term debt | 14,869 | |
Operating leases, non-current | 112,252 | 135,819 |
Other long-term liabilities | 4,268 | 5,109 |
Total long-term liabilities | 116,520 | 155,797 |
Commitments and contingencies | ||
Stockholders' equity (deficit): | ||
Preferred stock, $0.01 par value, 1,000,000 shares authorized, none issued | ||
Common stock, $0.01 par value, 125,000,000 shares and 100,000,000 authorized at October 30, 2021 and January 30, 2021, respectively, 76,289,743 and 64,656,384 shares issued at October 30, 2021 and January 30, 2021, respectively | 768 | 647 |
Additional paid-in capital | 319,439 | 314,747 |
Treasury stock at cost, 12,755,873 shares at October 30, 2021 and January 30, 2021 | (92,658) | (92,658) |
Accumulated deficit | (173,788) | (220,592) |
Accumulated other comprehensive loss | (6,028) | (6,221) |
Total stockholders' equity (deficit) | 47,733 | (4,077) |
Total liabilities and stockholders' equity (deficit) | $ 263,921 | $ 306,755 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Oct. 30, 2021 | Jan. 30, 2021 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 125,000,000 | 100,000,000 |
Common stock, shares issued | 76,777,738 | 64,656,384 |
Treasury stock, shares | 12,755,873 | 12,755,873 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Income Statement [Abstract] | ||||
Sales | $ 121,486,000 | $ 85,171,000 | $ 371,570,000 | $ 218,840,000 |
Cost of goods sold including occupancy costs | 60,529,000 | 54,099,000 | 188,178,000 | 153,057,000 |
Gross profit | 60,957,000 | 31,072,000 | 183,392,000 | 65,783,000 |
Expenses: | ||||
Selling, general and administrative | 41,962,000 | 32,820,000 | 120,856,000 | 90,727,000 |
Impairment of assets | (1,086,000) | (1,135,000) | (2,103,000) | 15,200,000 |
Depreciation and amortization | 4,142,000 | 5,302,000 | 13,031,000 | 16,374,000 |
Total expenses | 45,018,000 | 36,987,000 | 131,784,000 | 122,301,000 |
Operating income (loss) | 15,939,000 | (5,915,000) | 51,608,000 | (56,518,000) |
Interest expense, net | (2,189,000) | (1,080,000) | (4,256,000) | (2,873,000) |
Income (loss) before provision for income taxes | 13,750,000 | (6,995,000) | 47,352,000 | (59,391,000) |
Provision for income taxes | 94,000 | 27,000 | 548,000 | 71,000 |
Net income (loss) | $ 13,656,000 | $ (7,022,000) | $ 46,804,000 | $ (59,462,000) |
Net income (loss) per share - basic | $ 0.21 | $ (0.14) | $ 0.74 | $ (1.16) |
Net income (loss) per share - diluted | $ 0.20 | $ (0.14) | $ 0.69 | $ (1.16) |
Weighted-average number of common shares outstanding: | ||||
Basic | 63,699 | 51,545 | 63,126 | 51,127 |
Diluted | 68,644 | 51,545 | 67,378 | 51,127 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 13,656 | $ (7,022) | $ 46,804 | $ (59,462) |
Other comprehensive income before taxes: | ||||
Foreign currency translation | (2) | (40) | (39) | |
Pension plans | 77 | 247 | 233 | 742 |
Other comprehensive income before taxes | 79 | 247 | 193 | 703 |
Other comprehensive income, net of tax | 79 | 247 | 193 | 703 |
Comprehensive income (loss) | $ 13,735 | $ (6,775) | $ 46,997 | $ (58,759) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Feb. 01, 2020 | $ 58,423 | $ 633 | $ 312,933 | $ (92,658) | $ (156,054) | $ (6,431) |
Beginning Balance (in shares) at Feb. 01, 2020 | 63,297,000 | (12,755,000) | ||||
Board of directors compensation | 149 | $ 1 | 148 | |||
Board of directors compensation (in shares) | 93,000 | |||||
Stock compensation expense | 452 | 452 | ||||
Issuance of common stock, upon RSUs/PSUs release | $ 4 | (4) | ||||
Issuance of common stock, upon RSUs/PSUs release (in shares) | 437,000 | |||||
Deferred stock vested (in shares) | 6,000 | |||||
Accumulated other comprehensive income (loss): | ||||||
Pension plan, net of taxes | 242 | 242 | ||||
Foreign currency, net of taxes | (34) | (34) | ||||
Net income (loss) | (41,726) | (41,726) | ||||
Ending Balance at May. 02, 2020 | 17,506 | $ 638 | 313,529 | $ (92,658) | (197,780) | (6,223) |
Ending Balance (in shares) at May. 02, 2020 | 63,833,000 | (12,755,000) | ||||
Beginning Balance at Feb. 01, 2020 | 58,423 | $ 633 | 312,933 | $ (92,658) | (156,054) | (6,431) |
Beginning Balance (in shares) at Feb. 01, 2020 | 63,297,000 | (12,755,000) | ||||
Accumulated other comprehensive income (loss): | ||||||
Net income (loss) | (59,462) | |||||
Ending Balance at Oct. 31, 2020 | 1,057 | $ 643 | 314,316 | $ (92,658) | (215,516) | (5,728) |
Ending Balance (in shares) at Oct. 31, 2020 | 64,324,000 | (12,755,000) | ||||
Beginning Balance at May. 02, 2020 | 17,506 | $ 638 | 313,529 | $ (92,658) | (197,780) | (6,223) |
Beginning Balance (in shares) at May. 02, 2020 | 63,833,000 | (12,755,000) | ||||
Stock compensation expense | 345 | 345 | ||||
Deferred stock vested (in shares) | 8,000 | |||||
Accumulated other comprehensive income (loss): | ||||||
Pension plan, net of taxes | 253 | 253 | ||||
Foreign currency, net of taxes | (5) | (5) | ||||
Net income (loss) | (10,714) | (10,714) | ||||
Ending Balance at Aug. 01, 2020 | 7,385 | $ 638 | 313,874 | $ (92,658) | (208,494) | (5,975) |
Ending Balance (in shares) at Aug. 01, 2020 | 63,841,000 | (12,755,000) | ||||
Board of directors compensation | 120 | $ 3 | 117 | |||
Board of directors compensation (in shares) | 252,000 | |||||
Stock compensation expense | 326 | 326 | ||||
Issuance of common stock, upon RSUs/PSUs release | $ 1 | (1) | ||||
Issuance of common stock, upon RSUs/PSUs release (in shares) | 131,000 | |||||
Deferred stock vested | 1 | $ 1 | ||||
Deferred stock vested (in shares) | 100,000 | |||||
Accumulated other comprehensive income (loss): | ||||||
Pension plan, net of taxes | 247 | 247 | ||||
Net income (loss) | (7,022) | (7,022) | ||||
Ending Balance at Oct. 31, 2020 | 1,057 | $ 643 | 314,316 | $ (92,658) | (215,516) | (5,728) |
Ending Balance (in shares) at Oct. 31, 2020 | 64,324,000 | (12,755,000) | ||||
Beginning Balance at Jan. 30, 2021 | (4,077) | $ 647 | 314,747 | $ (92,658) | (220,592) | (6,221) |
Beginning Balance (in shares) at Jan. 30, 2021 | 64,656,000 | (12,755,000) | ||||
Issuance of common stock through private direct offering, net of offering costs | 4,375 | $ 111 | 4,264 | |||
Issuance of common stock through private direct offering, net of offering costs (in shares) | 11,111,000 | |||||
Board of directors compensation | 109 | $ 1 | 108 | |||
Board of directors compensation (in shares) | 137,000 | |||||
Stock compensation expense | 327 | 327 | ||||
Issuance of common stock, upon RSUs/PSUs release | $ 3 | (3) | ||||
Issuance of common stock, upon RSUs/PSUs release (in shares) | 308,000 | |||||
Accumulated other comprehensive income (loss): | ||||||
Pension plan, net of taxes | 78 | 78 | ||||
Foreign currency, net of taxes | (25) | (25) | ||||
Net income (loss) | 8,697 | 8,697 | ||||
Ending Balance at May. 01, 2021 | 9,484 | $ 762 | 319,443 | $ (92,658) | (211,895) | (6,168) |
Ending Balance (in shares) at May. 01, 2021 | 76,212,000 | (12,755,000) | ||||
Beginning Balance at Jan. 30, 2021 | $ (4,077) | $ 647 | 314,747 | $ (92,658) | (220,592) | (6,221) |
Beginning Balance (in shares) at Jan. 30, 2021 | 64,656,000 | (12,755,000) | ||||
Issuance of common stock through private direct offering, net of offering costs (in shares) | 298,150 | |||||
Exercise of stock options (in shares) | 429,955 | |||||
Accumulated other comprehensive income (loss): | ||||||
Net income (loss) | $ 46,804 | |||||
Ending Balance at Oct. 30, 2021 | 47,733 | $ 768 | 319,439 | $ (92,658) | (173,788) | (6,028) |
Ending Balance (in shares) at Oct. 30, 2021 | 76,777,000 | (12,755,000) | ||||
Beginning Balance at May. 01, 2021 | 9,484 | $ 762 | 319,443 | $ (92,658) | (211,895) | (6,168) |
Beginning Balance (in shares) at May. 01, 2021 | 76,212,000 | (12,755,000) | ||||
Board of directors compensation | 110 | $ 1 | 109 | |||
Board of directors compensation (in shares) | 70,000 | |||||
Stock compensation expense | 316 | 316 | ||||
Exercise of stock options | 4 | 4 | ||||
Exercise of stock options (in shares) | 7,000 | |||||
Accumulated other comprehensive income (loss): | ||||||
Pension plan, net of taxes | 78 | 78 | ||||
Foreign currency, net of taxes | (17) | (17) | ||||
Net income (loss) | 24,451 | 24,451 | ||||
Ending Balance at Jul. 31, 2021 | 34,426 | $ 763 | 319,872 | $ (92,658) | (187,444) | (6,107) |
Ending Balance (in shares) at Jul. 31, 2021 | 76,289,000 | (12,755,000) | ||||
Board of directors compensation | 77 | 77 | ||||
Board of directors compensation (in shares) | 15,000 | |||||
Stock compensation expense | 295 | 295 | ||||
Exercise of stock options | 346 | $ 4 | 342 | |||
Exercise of stock options (in shares) | 423,000 | |||||
Issuance of common stock, upon RSUs/PSUs release | $ 3 | (3) | ||||
Issuance of common stock, upon RSUs/PSUs release (in shares) | 240,000 | |||||
Shares withheld for taxes related to net share settlements | (1,146) | $ (2) | (1,144) | |||
Shares withheld for taxes related to net share settlements (in shares) | (190,000) | |||||
Accumulated other comprehensive income (loss): | ||||||
Pension plan, net of taxes | 77 | 77 | ||||
Foreign currency, net of taxes | 2 | 2 | ||||
Net income (loss) | 13,656 | 13,656 | ||||
Ending Balance at Oct. 30, 2021 | $ 47,733 | $ 768 | $ 319,439 | $ (92,658) | $ (173,788) | $ (6,028) |
Ending Balance (in shares) at Oct. 30, 2021 | 76,777,000 | (12,755,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 30, 2021 | Oct. 31, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 46,804 | $ (59,462) |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ||
Amortization and write-off of deferred debt issuance costs | 1,161 | 108 |
Impairment of assets | (2,103) | 15,200 |
Depreciation and amortization | 13,031 | 16,374 |
Stock compensation expense | 938 | 1,123 |
Board of directors stock compensation | 296 | 269 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 4,812 | 997 |
Inventories | 2,744 | 7,522 |
Prepaid expenses and other current assets | (3,237) | 5,348 |
Other assets | 360 | 675 |
Accounts payable | 2,674 | (3,183) |
Operating leases, net | (12,275) | 763 |
Accrued expenses and other liabilities | 8,945 | 5,631 |
Net cash provided by (used for) operating activities | 64,150 | (8,635) |
Cash flows from investing activities: | ||
Additions to property and equipment, net | (2,802) | (2,938) |
Net cash used for investing activities | (2,802) | (2,938) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock from private direct offering, net of offering costs | 4,375 | |
Net borrowings (repayments) under credit facility | (59,733) | 28,677 |
Debt extinguishment costs | (1,111) | |
Debt issuance costs | (1,143) | (25) |
Tax withholdings paid related to net share settlements | (1,146) | |
Proceeds from the exercise of stock options | 350 | |
Net cash provided by (used for) financing activities | (73,408) | 28,652 |
Net increase (decrease) in cash and cash equivalents | (12,060) | 17,079 |
Cash and cash equivalents: | ||
Beginning of period | 18,997 | 4,338 |
End of period | 6,937 | $ 21,417 |
FILO Loan | ||
Cash flows from financing activities: | ||
Repayment of FILO loans | (32,500) | |
Proceeds from new FILO loan | $ 17,500 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Oct. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation In the opinion of management of Destination XL Group, Inc., a Delaware corporation (collectively with its subsidiaries, referred to as the “Company”), the accompanying unaudited Consolidated Financial Statements contain all adjustments necessary for a fair presentation of the interim financial statements. These financial statements do not include all disclosures associated with annual financial statements and, accordingly, should be read in conjunction with the notes to the Company’s audited Consolidated Financial Statements for the fiscal year ended January 30, 2021 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 19, 2021. The information set forth in these statements may be subject to normal year-end adjustments. The information reflects all adjustments that, in the opinion of management, are necessary to present fairly the Company’s results of operations, financial position and cash flows for the periods indicated. The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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. The Company’s business historically has been seasonal in nature, and the results of the interim periods presented are not necessarily indicative of the results to be expected for the full year. The Company’s fiscal year is a 52- or 53- week period ending on the Saturday closest to January 31. Fiscal 2021 and fiscal 2020 are 52-week periods ending on January 29, 2022 and January 30, 2021, respectively. COVID-19 Pandemic and its impact on results and comparability of financial statements On March 11, 2020, the World Health Organization declared the current outbreak of a novel coronavirus disease (“COVID-19”) as a global pandemic. The COVID-19 pandemic had an adverse effect on the Company’s operations during fiscal 2020. All of the Company’s store locations were closed temporarily on March 17, 2020 and the majority of the Company’s workforce was furloughed in March 2020. The Company began reopening stores in late April and by the end of June 2020 all retail stores had been reopened, but the majority with reduced operating hours. As a result of the impact of the pandemic on our business in fiscal 2020, including the temporary closure of all of our stores in fiscal 2020, results for the third quarter and first nine months of fiscal 2021 may not be comparable to the results for the third quarter and first nine months of fiscal 2020. While vaccines are being widely distributed and many areas where our stores are located currently have limited or no restrictions, the duration of the COVID-19 pandemic and its variants remain uncertain and could continue to have a material adverse impact on the Company’s results of operations, financial condition and cash flows. Segment Information The Company has three principal operating segments: its stores, direct and wholesale businesses. The Company considers its stores and direct operating segments to be similar in terms of economic characteristics, production processes and operations, and has therefore aggregated them into one reportable segment, retail segment, consistent with its omni-channel business approach. Due to the immateriality of the wholesale segment’s revenues, profits and assets, its operating results are aggregated with the retail segment for all periods presented. Fair Value of Financial Instruments ASC Topic 825, Financial Instruments , requires disclosure of the fair value of certain financial instruments. ASC Topic 820, “ Fair Value Measurements and Disclosures ,” defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements. The valuation techniques utilized are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities. The Company utilizes observable market inputs (quoted market prices) when measuring fair value whenever possible. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and short-term borrowings approximate fair value because of the short maturity of these instruments. Accumulated Other Comprehensive Income (Loss) - (“AOCI”) Other comprehensive income (loss) includes amounts related to foreign currency and pension plans and is reported in the Consolidated Statements of Comprehensive Income (Loss). Other comprehensive income (loss) and reclassifications from AOCI for the three and nine months ended October 30, 2021 and October 31, 2020, respectively, were as follows: October 30, 2021 October 31, 2020 For the three months ended: (in thousands) Pension Foreign Total Pension Foreign Total Balance at beginning of the quarter $ ( 6,068 ) $ ( 39 ) $ ( 6,107 ) $ ( 5,983 ) $ 8 $ ( 5,975 ) Other comprehensive income (loss) before 90 2 92 77 — 77 Amounts reclassified from accumulated other (1) ( 13 ) — ( 13 ) 170 — 170 Other comprehensive income (loss) for the period 77 2 79 247 — 247 Balance at end of quarter $ ( 5,991 ) $ ( 37 ) $ ( 6,028 ) $ ( 5,736 ) $ 8 $ ( 5,728 ) October 30, 2021 October 31, 2020 For the nine months ended: (in thousands) Pension Foreign Total Pension Foreign Total Balance at beginning of fiscal year $ ( 6,224 ) $ 3 $ ( 6,221 ) $ ( 6,478 ) $ 47 $ ( 6,431 ) Other comprehensive income (loss) before 270 ( 40 ) 230 231 ( 39 ) 192 Amounts reclassified from accumulated other (1) ( 37 ) — ( 37 ) 511 — 511 Other comprehensive income (loss) for the period 233 ( 40 ) 193 742 ( 39 ) 703 Balance at end of quarter $ ( 5,991 ) $ ( 37 ) $ ( 6,028 ) $ ( 5,736 ) $ 8 $ ( 5,728 ) (1) Includes the amortization of the unrecognized loss on pension plans, which was charged to “Selling, General and Administrative” Expense on the Consolidated Statements of Operations for all periods presented. The amortization of the unrecognized loss, before tax, was $ 170,000 and $ 511,000 for the three and nine months ended October 31, 2020, respectively. For the three and nine months ended October 30, 2021 , the Company recognized income of $ 13,000 and $ 37,000 , respectively, as a result of a change in amortization from average remaining future service to average remaining lifetime. There was no related tax effect for either period. Stock-based Compensation All share-based payments, including grants of employee stock options and restricted stock, are recognized as an expense in the Consolidated Statements of Operations based on their fair values and vesting periods. The fair value of stock options is determined using the Black-Scholes valuation model and requires the input of subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (the “expected term”), the estimated volatility of the Company’s common stock price over the expected term and the number of options that will ultimately not complete their vesting requirements (“forfeitures”). The Company reviews its valuation assumptions at each grant date and, as a result, is likely to change its valuation assumptions used to value employee stock-based awards granted in future periods. The values derived from using the Black-Scholes model are recognized as an expense over the vesting period, net of estimated forfeitures. The estimation of stock-based awards that will ultimately vest requires judgment. Actual results and future changes in estimates may differ from the Company’s current estimates. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model based on the assumptions in the table below as it relates to stock options granted during the first nine months of fiscal 2021 and fiscal 2020. October 30, 2021 October 31, 2020 Expected volatility 97.4 % - 104.9 % 82.3 % - 87.8 % Risk-free interest rate 0.31 % - 0.60 % 0.22 % - 0.27 % Expected life 3.0 - 4.0 yrs. 3.0 - 4.0 yrs. Dividend rate — — Weighted average fair value of options granted $ 0.47 $ 0.32 The Company has outstanding performance stock units (PSUs) with a market condition. The respective grant-date fair value and derived service periods assigned to the PSUs were determined using a Monte Carlo model. The valuation included assumptions with respect to the Company’s historical volatility, risk-free rate and cost of equity. Impairment of Long-Lived Assets The Company reviews its long-lived assets for events or changes in circumstances that might indicate the carrying amount of the assets may not be recoverable. The Company assesses the recoverability of the assets by determining whether the carrying value of such assets over their respective remaining lives can be recovered through projected undiscounted future cash flows. The model for undiscounted future cash flows includes assumptions, at the individual store level, with respect to expectations for future sales and gross margin rates as well as an estimate for occupancy costs used to estimate the fair value of the respective store’s operating lease right-of-use asset. The amount of impairment, if any, is measured based on projected discounted future cash flows using a discount rate reflecting the Company’s average cost of funds. For the third quarter and first nine months of fiscal 2021, the Company recognized non-cash gains of $ 1.2 million and $ 2.3 million, related to the Company’s decision to close certain retail stores, which resulted in a revaluation of the existing lease liabilities. The portion of the gains that related to previously recorded impairment charges against the operating lease right-of-use asset were included as an offset to previously recorded asset impairment charges. Accordingly, for the third quarter and first nine months of fiscal 2021, $ 1.1 million and $ 2.1 million were included as an offset to asset impairment charges, respectively. The remaining $ 0.1 million and $ 0.2 million of the gains for the third quarter and first nine months of fiscal 2021, respectively, was included as a reduction of store occupancy costs. For the third quarter of fiscal 2020, the Company recognized a non-cash gain of $ 1.2 million related to the closure of certain stores, which had previously been impaired. Accordingly, $ 1.1 million of the $ 1.2 million, related to previously recorded impairment charges was included as an offset to asset impairment charges, with the remaining $ 0.1 million included as a reduction of store occupancy costs. The results for the first nine months of fiscal 2020, include an impairment charge of $ 16.3 million, recorded in the first quarter of fiscal 2020 as a result of the significant impact that the COVID-19 pandemic was having on the Company’s business and the continued uncertainty at that time. The impairment charge included approximately $ 12.5 million for the write-down of certain right-of-use assets and $ 3.8 million for the write-down of property and equipment, related to stores where the carrying value exceeded fair value. Leases The Company adopted ASU 2016-02, “ Leases (Topic 842) ” in fiscal 2019. Under ASC 842, 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 (“ROU”) assets and lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments, initial direct costs and any lease incentives are included in the value of those right-of use assets. As the interest rate implicit in the Company’s leases is not readily determinable, the Company utilizes its incremental borrowing rate, based on information available at the lease measurement date to determine the present value of future payments. The Company elected the lessee non-lease component separation practical expedient, which permits the Company to not separate non-lease components from the lease components to which they relate. The Company also made an accounting policy election that the recognition requirement of ASC 842 will not be applied to certain, if any, non-store leases, with a term of 12 months or less, recognizing those lease payments on a straight-line basis over the lease term. At October 30, 2021 , the Company had no short-term leases. The Company’s store leases typically contain options that permit renewals for additional periods of up to five years each. In general, for store leases with an initial term of 10 years or more, the options to extend are not considered reasonably certain at lease commencement. For stores leases with an initial term of 5 years, the Company evaluates each lease independently and, only when the Company considers it reasonably certain that it will exercise an option to extend, will the associated payment of that option be included in the measurement of the right-of-use asset and lease liability. Renewal options are not included in the lease term for automobile and equipment leases because they are not considered reasonably certain of being exercised at lease commencement. Renewal options were not considered for the Company’s corporate headquarters and distribution center lease, which was entered into in 2006 and was for an initial 20 -year term . At the end of the initial term, the Company will have the opportunity to extend this lease for six additional successive periods of five years . For store leases, the Company accounts for lease components and non-lease components as a single lease component. Certain store leases may require additional payments based on sales volume, as well as reimbursement for real estate taxes, common area maintenance and insurance, and are expensed as incurred as variable lease costs. Other store leases contain one periodic 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. Tenant allowances are included as an offset to the right-of-use asset and amortized as reductions to rent expense over the associated lease term. See Note 4 ‘‘ Leases ’’ for additional information. Recently Issued Accounting Pronouncements No new accounting pronouncements, issued or effective during the first nine months of fiscal 2021, have had or are expected to have a significant impact on the Company’s Consolidated Financial Statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Oct. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition The Company operates as a retailer of big and tall men’s clothing, which includes stores, direct and wholesale. Revenue is recognized by the operating segment that initiates a customer’s order. Store sales are defined as sales that originate and are fulfilled directly at the store level. Direct sales are defined as sales that originate online, including those initiated online at the store level, on its website or on third-party marketplaces. Wholesale sales are defined as sales made to wholesale customers pursuant to the terms of each customer’s contract with the Company. Generally, all revenues are recognized when control of the promised goods is transferred to customers, in an amount that reflects the consideration in exchange for those goods. Sales tax collected from customers and remitted to taxing authorities is excluded from revenue and is included as part of accrued expenses on the Consolidated Balance Sheets. ̶ Revenue from the Company’s store operations is recorded upon purchase of merchandise by customers, net of an allowance for sales returns, which is estimated based upon historical experience. ̶ Revenue from the Company’s direct operations is recognized at the time a customer order is delivered, net of an allowance for sales returns, which is estimated based upon historical experience. ̶ Revenue from the Company’s wholesale operations is recognized at the time the wholesale customer takes physical receipt of the merchandise, net of any identified discounts in accordance with each individual order. For the first nine months of fiscal 2021 and fiscal 2020, chargebacks were immaterial. Unredeemed Gift Cards, Gift Certificates, and Credit Vouchers. Upon issuance of a gift card, gift certificate, or credit voucher, a liability is established for its cash value. The liability is relieved and net sales are recorded upon redemption by the customer. Based on historical redemption patterns, the Company can reasonably estimate the amount of gift cards, gift certificates, and credit vouchers for which redemption is remote, which is referred to as “breakage”. Breakage is recognized over two years in proportion to historical redemption trends and is recorded as sales in the Consolidated Statements of Operations. The gift card liability, net of breakage, was $ 1.1 million and $ 2.8 million at October 30, 2021 and January 30, 2021, respectively. Unredeemed Loyalty Coupons. The Company offers a free loyalty program to its customers for which points accumulate based on the purchase of merchandise. Approximately 90 % of the Company’s customers participate in the loyalty program. Under ASC 606, Revenue from Contracts with Customers , these loyalty points provide the customer with a material right and a distinct performance obligation with revenue deferred and recognized when the points are expected to redeem or expire. The cycle of earning and redeeming loyalty points is generally under one year in duration. The loyalty accrual, net of breakage, was $ 2.2 million and $ 1.0 million at October 30, 2021 and January 30, 2021, respectively. Shipping. Shipping and handling costs are accounted for as fulfillment costs and are included in cost of sales for all periods presented. Amounts related to shipping and handling that are billed to customers are recorded in sales, and the related costs are recorded in cost of goods sold, including occupancy costs, in the Consolidated Statements of Operations. Disaggregation of Revenue As noted above under Segment Information in Note 1, the Company’s business consists of one reportable segment, its retail segment. Substantially all of the Company’s revenue is generated from its stores and direct businesses. The operating results from the wholesale segment, which were immaterial, have been aggregated with this reportable segment, but the revenues are separately reported below. Accordingly, the Company has determined that the following sales channels depict the nature, amount, timing, and uncertainty of how revenue and cash flows are affected by economic factors: For the three months ended For the nine months ended (in thousands) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Store sales $ 84,762 70.3 % $ 53,363 66.6 % $ 258,685 70.5 % $ 124,155 60.0 % Direct sales 35,837 29.7 % 26,764 33.4 % 108,043 29.5 % 82,605 40.0 % Retail segment $ 120,599 $ 80,127 $ 366,728 $ 206,760 Wholesale segment 887 5,044 4,842 12,080 Total sales $ 121,486 $ 85,171 $ 371,570 $ 218,840 |
Debt
Debt | 9 Months Ended |
Oct. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 3. Debt Credit Agreement with Citizens Bank, N.A. On October 28, 2021, the Company entered into a new credit facility with Citizens Bank, N.A. (the “New Credit Facility”). The New Credit Facility replaced the Company's existing credit facility with Bank of America, N.A., which was due to expire on May 24, 2023 (the "Prior Credit Facility"). The New Credit Facility is a $ 125.0 million secured, asset-based credit facility with a maturity date of October 28, 2026 . The maximum committed borrowing of $ 125.0 million includes a sublimit of $ 20.0 million for commercial and standby letter of credits and a sublimit of up to $ 15.0 million for swing line loans. The Company’s ability to borrow under the Credit Facility is determined using an availability formula based on eligible assets . Borrowings made pursuant to the New Credit Facility will be made pursuant to either a Base Rate loan or LIBOR Rate loan, at the Company's option. Base Rate loans will bear interest, at a rate equal to (i) the greater of: (a) the Prime Rate, (b) the Federal Funds effective rate plus 0.50 % per annum and (c) the daily LIBOR rate plus 1.00 % per annum, plus (ii) a varying percentage, based on the Company’s average excess availability, of either 0.25 % or 0.50 %. LIBOR Rate loans, which may be either for 1 month or 3 months, will bear interest at (i) the LIBOR rate, or the Benchmark Rate as defined in the credit agreement plus (ii) a varying percentage based on the Company’s average excess availability, of either 1.25 % or 1.50 %. Any swingline loan will bear interest at a rate equal to the rate of a Base Rate loan, plus a varying percentage based on the Company’s average excess availability, of either 0.25 % or 0.50 %. The Company will be subject to an unused line fee of 0.25 %. The Company’s obligations under the New Credit Facility are secured by a lien on substantially all of its assets. If the Company’s availability under the New Credit Facility at any time is less than the greater of (i) 10 % of the Revolving Loan Cap (the lesser of the aggregate revolving commitments or the borrowing base) and (ii) $ 7.5 million, then the Company is required to maintain a minimum consolidated fixed charge coverage ratio of 1.0 :1.0 until such time as availability has exceeded the greater of (1) 10 % of the Revolving Loan Cap and (2) $ 7.5 million for 30 consecutive days. In connection with the execution of the New Credit Facility, the Company terminated its Prior Credit Facility and paid outstanding obligations of $ 30,874 , related to its unused line fee and letter of credit fees. At the same time, all guarantees and security interests associated with the Prior Credit Agreement were released. There were no outstanding borrowings under the Prior Credit Facility at the time of termination and no prepayment penalty fees. At October 30, 2021 , the Company had no borrowings outstanding under the revolving credit facility and availability under the New Credit Facility was $ 74.0 million. Average monthly borrowings outstanding during the first nine months of fiscal 2021 were $ 21.8 million, resulting in an average unused excess availability of approximately $ 49.7 million. Outstanding standby letters of credit were $ 2.7 million and outstanding documentary letters of $ 1.2 million at October 30, 2021. At October 30, 2021, the Company’s prime-based interest rate was 5.00 % . Interest costs incurred during the first nine months of fiscal 2021 were based on the Prior Credit Facility, which bore interest based upon either the Federal Funds rate or the LIBOR rate, at a rate equal to the following: (a) the Federal Funds rate plus a varying percentage based on the Company’s excess availability, of either 1.75 % or 2.00 %, or (b) the LIBOR rate (the Company being able to select interest periods of 1 week, 1 month, 2 months, 3 months or 6 months) plus a varying percentage based on the Company’s excess availability, of either 2.75 % or 3.00 %. Borrowings and repayments for the first nine months ended October 30, 2021 and October 31, 2020 were as follows: For the nine months ended (in thousands) October 30, 2021 October 31, 2020 Borrowings $ 40,297 $ 60,748 Repayments ( 100,030 ) ( 32,071 ) Net borrowings (repayments) $ ( 59,733 ) $ 28,677 Long-Term Debt On March 16, 2021, the Company refinanced its then existing $ 15.0 million FILO (first-in, last-out) loan and entered into a new $ 17.5 million FILO loan (the “New FILO loan”). On September 3, 2021, the Company repaid in full its New FILO loan. In connection with the repayment, the FILO lender agreed to a reduction in the amount of the prepayment premium that otherwise would have been payable as a result of the Company’s early repayment. The Company paid a prepayment penalty of $ 1.1 million. The prepayment of the New FILO loan was made from cash on-hand. Interest under the New FILO loan bore interest at 8.5 %. The Company paid interest and fees totaling $ 3.1 million and $ 2.4 million for the nine months ended October 30, 2021 and October 31, 2020, respectively. Included in the $ 3.1 million for the nine months ended October 30, 2021 was a prepayment fee associated with the prepayment of the New FILO loan, as discussed above. In connection with the execution of the Company's New Credit Facility and the prepayment of its New FILO loan, in the third quarter of fiscal 2021, the Company also wrote-off a total of $ 0.8 million in unamortized debt issuance costs. |
Leases
Leases | 9 Months Ended |
Oct. 30, 2021 | |
Leases [Abstract] | |
Leases | 4. Leases The Company leases all of its store locations and its corporate headquarters, which also includes its distribution center, which are classified as operating leases. The store leases typically have initial terms of 5 years to 10 years , with options that usually permit renewal for additional five-year periods. The initial term of the lease for the corporate headquarter was for 20 years, with the opportunity to extend for six additional consecutive periods of five years , beginning in fiscal 2026 . The Company also leases certain equipment and other assets under operating leases, typically with initial terms of 3 to 5 years . The Company is generally obligated for the cost of property taxes, insurance and common area maintenance fees relating to its leases, which are considered variable lease costs and are expensed as incurred. ASC 842 requires the assessment of any lease modification to determine if the modification should be treated as a separate lease and if not, modification accounting would be applied. Lease modification accounting requires the recalculation of the ROU asset, lease liability and lease expense over the respective lease term. In April 2020, the FASB issued guidance allowing entities to make a policy election to account for lease concessions related to the COVID-19 pandemic as though enforceable rights and obligations for those concessions existed. The election applies to any lessor-provided lease concession related to the impact of the COVID-19 pandemic, provided the concession does not result in a substantial increase in the rights of the lessor or in the obligations of the lessee. The Company opted not to elect this practical expedient and instead accounted for these rent concessions as lease modifications in accordance with ASC 842. As of October 30, 2021, the Company’s operating leases liabilities represent the present value of the remaining future minimum lease payments updated based on concessions and lease modifications. The following table is a summary of the Company’s components of net lease cost for the three and nine months ended October 30, 2021 and October 31, 2020: For the three months ended For the nine months ended October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 (in thousands) Operating lease cost $ 11,064 $ 11,824 $ 32,698 $ 35,756 Variable lease costs (1) 3,284 3,690 10,473 10,759 Total lease costs $ 14,348 $ 15,514 $ 43,171 $ 46,515 (1) Variable lease costs include the cost of property taxes, insurance and common area maintenance fees related to its leases. Supplemental cash flow and balance sheet information related to leases for the first nine months ended October 30, 2021 and October 31, 2020 is as follows: (dollars in thousands) For the nine months ended Cash paid for amounts included in the measurement of lease liabilities: October 30, 2021 October 31, 2020 Operating cash flows for operating leases (1) $ 43,846 $ 33,233 Non-cash operating activities: Right-of-use assets obtained in exchange for operating lease liabilities $ 6,099 $ 645 Net decrease in right-of-use assets due to lease modifications $ - $ ( 2,283 ) Weighted average remaining lease term 4.1 yrs. 4.7 yrs. Weighted average discount rate 6.95 % 6.46 % (1) The increase in cash payments for the first nine months of fiscal 2021 as compared to the first nine months of fiscal 2020 is due to rent abatements and deferments negotiated in the second quarter of fiscal 2020 for rent obligations while stores were closed. The cash paid for the first nine months of fiscal 2021 also includes prepaid rent for November 2021 of $ 3.8 million. The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the Consolidated Balance Sheet as of October 30, 2021: (in thousands) 2021 (remaining) $ 8,999 2022 49,149 2023 41,972 2024 32,173 2025 23,755 Thereafter 16,674 Total minimum lease payments $ 172,722 Less: amount of lease payments representing interest 23,320 Present value of future minimum lease payments $ 149,402 Less: current obligations under leases 37,150 Long-term lease obligations $ 112,252 |
Long-Term Incentive Plans
Long-Term Incentive Plans | 9 Months Ended |
Oct. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Long-Term Incentive Plans | 5. Long-Term Incentive Plans The following is a summary of the Company’s Long-Term Incentive Plan (“LTIP”). All equity awards granted under long-term incentive plans are issued from the Company’s stockholder-approved 2016 Incentive Compensation Plan. See Note 6, Stock-Based Compensation . At October 30, 2021 , the Company has three active LTIPs: the 2019-2021 LTIP, 2020-2022 LTIP and 2021-2023 LTIP. Each participant in the LTIP participates based on that participant’s “Target Cash Value” which is defined as the participant’s annual base salary (on the participant’s effective date) multiplied by his or her LTIP percentage. Under each LTIP, 50 % of each participant’s Target Cash Value is subject to time-based vesting and 50 % is subject to performance-based vesting. The time-based awards under the 2019-2021 LTIP were granted in a combination of 50 % RSUs and 50 % cash. For the 2020-2022 LTIP, the time-based awards were granted in a combination of 50 % stock options and 50 % cash, and for the 2021-2023 LTIP, the time-based awards were granted in a combination of 25 % stock options and 75 % cash. Performance targets for the 2019-2021 LTIP, 2020-2022 LTIP and 2021-2023 LTIP were established and approved by the Compensation Committee on August 7, 2019, June 11, 2020, and March 8, 2021, respectively. The performance period for each LTIP is three years . Awards for any achievement of performance targets will not be granted until the performance targets are achieved and then will be subject to additional vesting through August 31, 2022, August 31, 2023 and August, 31, 2024, respectively. The time-based awards under the 2019-2021 LTIP, 2020-2022 LTIP and 2021-2023 LTIP vest in four equal installments through April 1, 2023, April 1, 2024 and April 1, 2025, respectively. Assuming that the Company achieves the performance targets at target levels and all time-based awards vest, the compensation expense associated with the 2019-2021 LTIP, 2020-2022 LTIP and 2021-2023 LTIP is estimated to be approximately $ 3.8 million, $ 3.8 million and $ 4.0 million, respectively. Approximately half of the compensation expense for each LTIP relates to the time-based awards, which are being expensed straight-line over 44 months, 46 months and 49 months, respectively. At October 30, 2021 , the Company has accrued $ 1.9 million under the 2019-2021 LTIP, $ 1.3 million under the 2020-2022 LTIP and $ 0.6 million under the 2021-2023 LTIP for the performance awards. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Oct. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 6. Stock-Based Compensation The Company has one active stock-based compensation plan: the 2016 Incentive Compensation Plan (the “2016 Plan”). The initial share reserve under the 2016 Plan was 5,725,538 shares of common stock. A grant of a stock option award or stock appreciation right will reduce the outstanding reserve on a one-for-one basis, meaning one share for every share granted. A grant of a full-value award, including, but not limited to, restricted stock, restricted stock units and deferred stock, will reduce the outstanding reserve by a fixed ratio of 1.9 shares for every share granted. The Company’s shareholders approved amendments to increase the share reserve by 2,800,000 shares on August 8, 2019, an additional 1,740,000 shares on August 12, 2020 and an additional 4,855,000 on August 5, 2021. At October 30, 2021, the Company had 4,800,386 shares available under the 2016 Plan. In accordance with the terms of the 2016 Plan, any shares outstanding under the previous 2006 Incentive Compensation Plan (the “2006 Plan”) at August 4, 2016 that subsequently terminate, expire or are cancelled for any reason without having been exercised or paid are added back and become available for issuance under the 2016 Plan, with stock options being added back on a one-for-one basis and full-value awards being added back on a 1 to 1.9 basis. At October 30, 2021 , 389,509 stock options remained outstanding under the 2006 Plan. The 2016 Plan is administered by the Compensation Committee. The Compensation Committee is authorized to make all determinations with respect to amounts and conditions covering awards. Options are not granted at a price less than fair value on the date of the grant. Except with respect to 5 % of the shares available for awards under the 2016 Plan, no award will become exercisable unless such award has been outstanding for a minimum period of one year from its date of grant. The following tables summarize the share activity and stock option activity for the first nine months of fiscal 2021: RSUs (1) Deferred (2) Performance (3) Total number Weighted- Shares Outstanding non-vested shares at beginning of year 815,292 435,568 720,000 1,970,860 $ 1.69 Shares granted 8,054 — — 8,054 $ 0.66 Shares vested/issued ( 308,055 ) — ( 240,000 ) ( 548,055 ) $ 2.05 Outstanding non-vested shares at end of quarter 515,291 435,568 480,000 1,430,859 $ 1.54 (1) During the first nine months of fiscal 2021, the vesting of RSUs was primarily related to the time-based awards under the Company’s LTIP plans, see Note 5, Long-Term Incentive Plans . (2) Represents compensation to certain directors, in lieu of cash, in accordance with their irrevocable elections. Beginning in fiscal 2021, all equity issued to directors for compensation, in lieu of cash, is issued only from the Non-Employee Director Compensation Plan. The outstanding deferred shares will be issued upon the director’s separation from service. (3) T he 720,000 shares of performance stock units (“PSUs”), with a fair value of $ 1.0 million, represent a sign-on grant to Mr. Kanter. The PSUs vest in installments when the following milestones are met: one-third of the PSUs vest when the trailing 90-day volume-weighted average closing stock price (“VWAP”) is $ 4.00 , one-third of the PSUs vest when the VWAP is $ 6.00 and one-third when the VWAP is $ 8.00 . On September 9, 2021, 240,000 PSUs vested as a result of achieving a VWAP of $ 4.00 per share. As a result of net share settlement, of the 240,000 PSUs which vested, only 181,560 shares of common stock were issued. Subsequent to the end of the third quarter of fiscal 2021, an additional 240,000 PSUs vested when the $ 6.00 VWAP was achieved. The remaining 240,000 PSUs will expire on April 1, 2023 if the $ 8.00 VWAP is not achieved by that date. Number of Weighted- Weighted- Aggregate Stock Options Outstanding options at beginning of year 3,647,581 $ 1.09 8.5 years $ 810,596 Options granted (1) 1,518,154 $ 0.71 — — Options exercised (2) ( 429,955 ) $ 0.81 2,211,896 Options expired and canceled ( 22,542 ) $ 4.19 — — Outstanding options at end of quarter 4,713,238 $ 0.98 8.3 years $ 28,912,358 Options exercisable at end of quarter 843,431 $ 2.67 5.4 years $ 3,748,935 (1) Primarily represents the grant of stock options to purchase an aggregate of 1,078,913 shares of the Company’s common stock, at an exercise price of $ 0.69 per share, in connection with the time-based grant of awards under its 2021-2023 LTIP, see Note 5, Long-Term Incentive Plans. In March 2021, the Company also granted to active participants of the LTIP a discretionary grant of stock options to purchase an aggregate of 414,337 shares of the Company’s common stock, at an exercise price of $ 0.75 per share, which will vest ratably over 3 years. (2) As a result of net share settlement, of the 429,955 stock options exercised, only 298,150 shares of common stock were issued. For the first nine months of fiscal 2021, the Company granted stock options to purchase an aggregate of 1,518,154 shares of common stock and 8,054 restricted stock units. For the first nine months of fiscal 2020, the Company granted stock options to purchase an aggregate of 3,185,542 shares of common stock and 134,999 shares of deferred stock. Non-Employee Director Compensation Plan The Company granted 222,478 shares of common stock, with a fair value of approximately $ 296,300 , to certain of its non-employee directors as compensation in lieu of cash in the first nine months of fiscal 2021. Stock Compensation Expense The Company recognized total stock-based compensation expense of $ 0.9 million and $ 1.1 million for the first nine months of fiscal 2021 and fiscal 2020, respectively. The total compensation cost related to time-vested stock options, RSU and PSU awards not yet recognized as of October 30, 2021 was approximately $ 1.9 million, net of estimated forfeitures, which will be expensed over a weighted average remaining life of 26 months. |
Equity and Earnings per Share
Equity and Earnings per Share | 9 Months Ended |
Oct. 30, 2021 | |
Earnings Per Share [Abstract] | |
Equity and Earnings per Share | 7. Equity and Earnings per Share At the Company's Annual Meeting of Stockholders held on August 5, 2021, the shareholders approved an a mendment to the Company’s Restated Certificate of Incorporation to increase the authorized number of shares of its common stock from 100.0 million shares to 125.0 million shares. The following table provides a reconciliation of the number of shares outstanding for basic and diluted earnings per share: For the three months ended For the nine months ended October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 (in thousands ) Common stock outstanding: Basic weighted average common shares outstanding 63,699 51,545 63,126 51,127 Common stock equivalents – stock options, restricted stock units and deferred stock (1) 4,945 — 4,252 — Diluted weighted average common shares outstanding 68,644 51,545 67,378 51,127 (1) Co mmon stock equivalents of 134 shares and 172 shares for the three and nine months ended October 31, 2020 were excluded due to the net loss. The following potential common stock equivalents were excluded from the computation of diluted earnings per share in each period because the exercise price of such options was greater than the average market price per share of common stock for the respective periods or because the unearned compensation associated with stock options, restricted stock units, or deferred stock had an anti-dilutive effect. For the three months ended For the nine months ended October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 (in thousands, except exercise prices) Stock options — 3,676 386 3,676 Restricted stock units — 833 — 833 Deferred stock — 191 — 191 Range of exercise prices of such options — $ 0.53 - $ 7.02 $ 4.19 - $ 5.50 $ 0.53 - $ 7.02 The above options, which were outstanding at October 30, 2021 , expire from January 31, 2023 to June 29, 2028 . Excluded from the computation of basic and diluted earnings per share were 480,000 shares for the three and nine months of fiscal 2021 and 720,000 shares of unvested performance stock units for the three and nine months of fiscal 2020. These performance-based awards will be included in the computation of basic and diluted earnings per share if, and when, the respective performance targets are achieved. In addition, 435,568 shares and 316,703 shares of deferred stock at October 30, 2021 and October 31, 2020 , respectively, were excluded from basic earnings per share. Outstanding shares of deferred stock are not considered issued and outstanding until the vesting date of the deferral period. |
Registered Direct Offering -Com
Registered Direct Offering -Common Stock | 9 Months Ended |
Oct. 30, 2021 | |
Equity [Abstract] | |
Registered Direct Offering - Common Stock | 8. Registered Direct Offering – Common Stock On February 5, 2021, the Company sold, pursuant to a stock purchase agreement and through a registered direct offering, an aggregate of 11,111,111 shares of its common stock, for a gross purchase price of $ 5.0 million, before payment of offering costs of $ 0.6 million. The Company used the net proceeds from the offering for working capital and other general corporate purposes. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes During the third quarter and first nine months of fiscal 2021, the Company recorded income tax expense of $ 94,000 and $ 548,000 , respectively, primarily related to income tax in states where net operating loss ("NOL") usage is statutorily limited. During the third quarter and first nine months of fiscal 2020, the Company recorded income tax expense of $ 27,000 and $ 71,000 , respectively, related primarily to state margin tax. The Company’s effective tax rate will generally differ from the U.S. federal statutory rate of 21 % primarily due to the change in full valuation allowance recorded against its deferred tax assets, permanent items, and state taxes. Since the end of fiscal 2014, the Company has maintained a full valuation allowance against its deferred tax assets. While the Company has returned to profitability for the first nine months of fiscal 2021, and has projected that it will generate taxable income and ultimately emerge from a three-year cumulative loss, the Company believes that a full valuation allowance remains appropriate until the Company generates a more consistent history of profitability. Realization of the Company’s deferred tax assets is dependent on generating sufficient taxable income in the near term. For federal income tax purposes, at the end of fiscal 2020, the Company had net operating loss carryforwards of approximately $ 158.2 million, which will expire from fiscal 2022 through fiscal 2037 , and net operating loss carryforwards of $ 43.1 million, that are not subject to expiration, available in the U.S. to reduce future taxable income. For state purposes, at the end of fiscal 2020, the Company had $ 111.3 million of net operating losses that are available to offset future taxable income, the majority of which will expire from fiscal 2021 through fiscal 2041 . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Oct. 30, 2021 | |
Accounting Policies [Abstract] | |
COVID-19 Pandemic and Its Impact on Results and Comparability of Financial Statements | COVID-19 Pandemic and its impact on results and comparability of financial statements On March 11, 2020, the World Health Organization declared the current outbreak of a novel coronavirus disease (“COVID-19”) as a global pandemic. The COVID-19 pandemic had an adverse effect on the Company’s operations during fiscal 2020. All of the Company’s store locations were closed temporarily on March 17, 2020 and the majority of the Company’s workforce was furloughed in March 2020. The Company began reopening stores in late April and by the end of June 2020 all retail stores had been reopened, but the majority with reduced operating hours. As a result of the impact of the pandemic on our business in fiscal 2020, including the temporary closure of all of our stores in fiscal 2020, results for the third quarter and first nine months of fiscal 2021 may not be comparable to the results for the third quarter and first nine months of fiscal 2020. While vaccines are being widely distributed and many areas where our stores are located currently have limited or no restrictions, the duration of the COVID-19 pandemic and its variants remain uncertain and could continue to have a material adverse impact on the Company’s results of operations, financial condition and cash flows. |
Segment Information | Segment Information The Company has three principal operating segments: its stores, direct and wholesale businesses. The Company considers its stores and direct operating segments to be similar in terms of economic characteristics, production processes and operations, and has therefore aggregated them into one reportable segment, retail segment, consistent with its omni-channel business approach. Due to the immateriality of the wholesale segment’s revenues, profits and assets, its operating results are aggregated with the retail segment for all periods presented. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC Topic 825, Financial Instruments , requires disclosure of the fair value of certain financial instruments. ASC Topic 820, “ Fair Value Measurements and Disclosures ,” defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements. The valuation techniques utilized are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities. The Company utilizes observable market inputs (quoted market prices) when measuring fair value whenever possible. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and short-term borrowings approximate fair value because of the short maturity of these instruments. |
Accumulated Other Comprehensive Income (Loss) - ("AOCI") | Accumulated Other Comprehensive Income (Loss) - (“AOCI”) Other comprehensive income (loss) includes amounts related to foreign currency and pension plans and is reported in the Consolidated Statements of Comprehensive Income (Loss). Other comprehensive income (loss) and reclassifications from AOCI for the three and nine months ended October 30, 2021 and October 31, 2020, respectively, were as follows: October 30, 2021 October 31, 2020 For the three months ended: (in thousands) Pension Foreign Total Pension Foreign Total Balance at beginning of the quarter $ ( 6,068 ) $ ( 39 ) $ ( 6,107 ) $ ( 5,983 ) $ 8 $ ( 5,975 ) Other comprehensive income (loss) before 90 2 92 77 — 77 Amounts reclassified from accumulated other (1) ( 13 ) — ( 13 ) 170 — 170 Other comprehensive income (loss) for the period 77 2 79 247 — 247 Balance at end of quarter $ ( 5,991 ) $ ( 37 ) $ ( 6,028 ) $ ( 5,736 ) $ 8 $ ( 5,728 ) October 30, 2021 October 31, 2020 For the nine months ended: (in thousands) Pension Foreign Total Pension Foreign Total Balance at beginning of fiscal year $ ( 6,224 ) $ 3 $ ( 6,221 ) $ ( 6,478 ) $ 47 $ ( 6,431 ) Other comprehensive income (loss) before 270 ( 40 ) 230 231 ( 39 ) 192 Amounts reclassified from accumulated other (1) ( 37 ) — ( 37 ) 511 — 511 Other comprehensive income (loss) for the period 233 ( 40 ) 193 742 ( 39 ) 703 Balance at end of quarter $ ( 5,991 ) $ ( 37 ) $ ( 6,028 ) $ ( 5,736 ) $ 8 $ ( 5,728 ) (1) Includes the amortization of the unrecognized loss on pension plans, which was charged to “Selling, General and Administrative” Expense on the Consolidated Statements of Operations for all periods presented. The amortization of the unrecognized loss, before tax, was $ 170,000 and $ 511,000 for the three and nine months ended October 31, 2020, respectively. For the three and nine months ended October 30, 2021 , the Company recognized income of $ 13,000 and $ 37,000 , respectively, as a result of a change in amortization from average remaining future service to average remaining lifetime. There was no related tax effect for either period. |
Stock-based Compensation | Stock-based Compensation All share-based payments, including grants of employee stock options and restricted stock, are recognized as an expense in the Consolidated Statements of Operations based on their fair values and vesting periods. The fair value of stock options is determined using the Black-Scholes valuation model and requires the input of subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (the “expected term”), the estimated volatility of the Company’s common stock price over the expected term and the number of options that will ultimately not complete their vesting requirements (“forfeitures”). The Company reviews its valuation assumptions at each grant date and, as a result, is likely to change its valuation assumptions used to value employee stock-based awards granted in future periods. The values derived from using the Black-Scholes model are recognized as an expense over the vesting period, net of estimated forfeitures. The estimation of stock-based awards that will ultimately vest requires judgment. Actual results and future changes in estimates may differ from the Company’s current estimates. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model based on the assumptions in the table below as it relates to stock options granted during the first nine months of fiscal 2021 and fiscal 2020. October 30, 2021 October 31, 2020 Expected volatility 97.4 % - 104.9 % 82.3 % - 87.8 % Risk-free interest rate 0.31 % - 0.60 % 0.22 % - 0.27 % Expected life 3.0 - 4.0 yrs. 3.0 - 4.0 yrs. Dividend rate — — Weighted average fair value of options granted $ 0.47 $ 0.32 The Company has outstanding performance stock units (PSUs) with a market condition. The respective grant-date fair value and derived service periods assigned to the PSUs were determined using a Monte Carlo model. The valuation included assumptions with respect to the Company’s historical volatility, risk-free rate and cost of equity. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its long-lived assets for events or changes in circumstances that might indicate the carrying amount of the assets may not be recoverable. The Company assesses the recoverability of the assets by determining whether the carrying value of such assets over their respective remaining lives can be recovered through projected undiscounted future cash flows. The model for undiscounted future cash flows includes assumptions, at the individual store level, with respect to expectations for future sales and gross margin rates as well as an estimate for occupancy costs used to estimate the fair value of the respective store’s operating lease right-of-use asset. The amount of impairment, if any, is measured based on projected discounted future cash flows using a discount rate reflecting the Company’s average cost of funds. For the third quarter and first nine months of fiscal 2021, the Company recognized non-cash gains of $ 1.2 million and $ 2.3 million, related to the Company’s decision to close certain retail stores, which resulted in a revaluation of the existing lease liabilities. The portion of the gains that related to previously recorded impairment charges against the operating lease right-of-use asset were included as an offset to previously recorded asset impairment charges. Accordingly, for the third quarter and first nine months of fiscal 2021, $ 1.1 million and $ 2.1 million were included as an offset to asset impairment charges, respectively. The remaining $ 0.1 million and $ 0.2 million of the gains for the third quarter and first nine months of fiscal 2021, respectively, was included as a reduction of store occupancy costs. For the third quarter of fiscal 2020, the Company recognized a non-cash gain of $ 1.2 million related to the closure of certain stores, which had previously been impaired. Accordingly, $ 1.1 million of the $ 1.2 million, related to previously recorded impairment charges was included as an offset to asset impairment charges, with the remaining $ 0.1 million included as a reduction of store occupancy costs. The results for the first nine months of fiscal 2020, include an impairment charge of $ 16.3 million, recorded in the first quarter of fiscal 2020 as a result of the significant impact that the COVID-19 pandemic was having on the Company’s business and the continued uncertainty at that time. The impairment charge included approximately $ 12.5 million for the write-down of certain right-of-use assets and $ 3.8 million for the write-down of property and equipment, related to stores where the carrying value exceeded fair value. |
Leases | Leases The Company adopted ASU 2016-02, “ Leases (Topic 842) ” in fiscal 2019. Under ASC 842, 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 (“ROU”) assets and lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments, initial direct costs and any lease incentives are included in the value of those right-of use assets. As the interest rate implicit in the Company’s leases is not readily determinable, the Company utilizes its incremental borrowing rate, based on information available at the lease measurement date to determine the present value of future payments. The Company elected the lessee non-lease component separation practical expedient, which permits the Company to not separate non-lease components from the lease components to which they relate. The Company also made an accounting policy election that the recognition requirement of ASC 842 will not be applied to certain, if any, non-store leases, with a term of 12 months or less, recognizing those lease payments on a straight-line basis over the lease term. At October 30, 2021 , the Company had no short-term leases. The Company’s store leases typically contain options that permit renewals for additional periods of up to five years each. In general, for store leases with an initial term of 10 years or more, the options to extend are not considered reasonably certain at lease commencement. For stores leases with an initial term of 5 years, the Company evaluates each lease independently and, only when the Company considers it reasonably certain that it will exercise an option to extend, will the associated payment of that option be included in the measurement of the right-of-use asset and lease liability. Renewal options are not included in the lease term for automobile and equipment leases because they are not considered reasonably certain of being exercised at lease commencement. Renewal options were not considered for the Company’s corporate headquarters and distribution center lease, which was entered into in 2006 and was for an initial 20 -year term . At the end of the initial term, the Company will have the opportunity to extend this lease for six additional successive periods of five years . For store leases, the Company accounts for lease components and non-lease components as a single lease component. Certain store leases may require additional payments based on sales volume, as well as reimbursement for real estate taxes, common area maintenance and insurance, and are expensed as incurred as variable lease costs. Other store leases contain one periodic 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. Tenant allowances are included as an offset to the right-of-use asset and amortized as reductions to rent expense over the associated lease term. See Note 4 ‘‘ Leases ’’ for additional information. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements No new accounting pronouncements, issued or effective during the first nine months of fiscal 2021, have had or are expected to have a significant impact on the Company’s Consolidated Financial Statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Accounting Policies [Abstract] | |
Other Comprehensive Income (Loss) and Reclassifications from AOCI | Other comprehensive income (loss) includes amounts related to foreign currency and pension plans and is reported in the Consolidated Statements of Comprehensive Income (Loss). Other comprehensive income (loss) and reclassifications from AOCI for the three and nine months ended October 30, 2021 and October 31, 2020, respectively, were as follows: October 30, 2021 October 31, 2020 For the three months ended: (in thousands) Pension Foreign Total Pension Foreign Total Balance at beginning of the quarter $ ( 6,068 ) $ ( 39 ) $ ( 6,107 ) $ ( 5,983 ) $ 8 $ ( 5,975 ) Other comprehensive income (loss) before 90 2 92 77 — 77 Amounts reclassified from accumulated other (1) ( 13 ) — ( 13 ) 170 — 170 Other comprehensive income (loss) for the period 77 2 79 247 — 247 Balance at end of quarter $ ( 5,991 ) $ ( 37 ) $ ( 6,028 ) $ ( 5,736 ) $ 8 $ ( 5,728 ) October 30, 2021 October 31, 2020 For the nine months ended: (in thousands) Pension Foreign Total Pension Foreign Total Balance at beginning of fiscal year $ ( 6,224 ) $ 3 $ ( 6,221 ) $ ( 6,478 ) $ 47 $ ( 6,431 ) Other comprehensive income (loss) before 270 ( 40 ) 230 231 ( 39 ) 192 Amounts reclassified from accumulated other (1) ( 37 ) — ( 37 ) 511 — 511 Other comprehensive income (loss) for the period 233 ( 40 ) 193 742 ( 39 ) 703 Balance at end of quarter $ ( 5,991 ) $ ( 37 ) $ ( 6,028 ) $ ( 5,736 ) $ 8 $ ( 5,728 ) (1) Includes the amortization of the unrecognized loss on pension plans, which was charged to “Selling, General and Administrative” Expense on the Consolidated Statements of Operations for all periods presented. The amortization of the unrecognized loss, before tax, was $ 170,000 and $ 511,000 for the three and nine months ended October 31, 2020, respectively. For the three and nine months ended October 30, 2021 , the Company recognized income of $ 13,000 and $ 37,000 , respectively, as a result of a change in amortization from average remaining future service to average remaining lifetime. There was no related tax effect for either period. |
Valuation Assumptions for Stock Options | The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model based on the assumptions in the table below as it relates to stock options granted during the first nine months of fiscal 2021 and fiscal 2020. October 30, 2021 October 31, 2020 Expected volatility 97.4 % - 104.9 % 82.3 % - 87.8 % Risk-free interest rate 0.31 % - 0.60 % 0.22 % - 0.27 % Expected life 3.0 - 4.0 yrs. 3.0 - 4.0 yrs. Dividend rate — — Weighted average fair value of options granted $ 0.47 $ 0.32 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Disaggregation of Revenue | As noted above under Segment Information in Note 1, the Company’s business consists of one reportable segment, its retail segment. Substantially all of the Company’s revenue is generated from its stores and direct businesses. The operating results from the wholesale segment, which were immaterial, have been aggregated with this reportable segment, but the revenues are separately reported below. Accordingly, the Company has determined that the following sales channels depict the nature, amount, timing, and uncertainty of how revenue and cash flows are affected by economic factors: For the three months ended For the nine months ended (in thousands) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Store sales $ 84,762 70.3 % $ 53,363 66.6 % $ 258,685 70.5 % $ 124,155 60.0 % Direct sales 35,837 29.7 % 26,764 33.4 % 108,043 29.5 % 82,605 40.0 % Retail segment $ 120,599 $ 80,127 $ 366,728 $ 206,760 Wholesale segment 887 5,044 4,842 12,080 Total sales $ 121,486 $ 85,171 $ 371,570 $ 218,840 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings and Repayments | Borrowings and repayments for the first nine months ended October 30, 2021 and October 31, 2020 were as follows: For the nine months ended (in thousands) October 30, 2021 October 31, 2020 Borrowings $ 40,297 $ 60,748 Repayments ( 100,030 ) ( 32,071 ) Net borrowings (repayments) $ ( 59,733 ) $ 28,677 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Leases [Abstract] | |
Summary of Components of Net Lease Cost | The following table is a summary of the Company’s components of net lease cost for the three and nine months ended October 30, 2021 and October 31, 2020: For the three months ended For the nine months ended October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 (in thousands) Operating lease cost $ 11,064 $ 11,824 $ 32,698 $ 35,756 Variable lease costs (1) 3,284 3,690 10,473 10,759 Total lease costs $ 14,348 $ 15,514 $ 43,171 $ 46,515 (1) Variable lease costs include the cost of property taxes, insurance and common area maintenance fees related to its leases. |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow and balance sheet information related to leases for the first nine months ended October 30, 2021 and October 31, 2020 is as follows: (dollars in thousands) For the nine months ended Cash paid for amounts included in the measurement of lease liabilities: October 30, 2021 October 31, 2020 Operating cash flows for operating leases (1) $ 43,846 $ 33,233 Non-cash operating activities: Right-of-use assets obtained in exchange for operating lease liabilities $ 6,099 $ 645 Net decrease in right-of-use assets due to lease modifications $ - $ ( 2,283 ) Weighted average remaining lease term 4.1 yrs. 4.7 yrs. Weighted average discount rate 6.95 % 6.46 % (1) The increase in cash payments for the first nine months of fiscal 2021 as compared to the first nine months of fiscal 2020 is due to rent abatements and deferments negotiated in the second quarter of fiscal 2020 for rent obligations while stores were closed. The cash paid for the first nine months of fiscal 2021 also includes prepaid rent for November 2021 of $ 3.8 million. |
Schedule of Reconciliation of Undiscounted Cash Flows Related to Operating Lease Liabilities | The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the Consolidated Balance Sheet as of October 30, 2021: (in thousands) 2021 (remaining) $ 8,999 2022 49,149 2023 41,972 2024 32,173 2025 23,755 Thereafter 16,674 Total minimum lease payments $ 172,722 Less: amount of lease payments representing interest 23,320 Present value of future minimum lease payments $ 149,402 Less: current obligations under leases 37,150 Long-term lease obligations $ 112,252 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Restricted Stock Activity | The following tables summarize the share activity and stock option activity for the first nine months of fiscal 2021: RSUs (1) Deferred (2) Performance (3) Total number Weighted- Shares Outstanding non-vested shares at beginning of year 815,292 435,568 720,000 1,970,860 $ 1.69 Shares granted 8,054 — — 8,054 $ 0.66 Shares vested/issued ( 308,055 ) — ( 240,000 ) ( 548,055 ) $ 2.05 Outstanding non-vested shares at end of quarter 515,291 435,568 480,000 1,430,859 $ 1.54 (1) During the first nine months of fiscal 2021, the vesting of RSUs was primarily related to the time-based awards under the Company’s LTIP plans, see Note 5, Long-Term Incentive Plans . (2) Represents compensation to certain directors, in lieu of cash, in accordance with their irrevocable elections. Beginning in fiscal 2021, all equity issued to directors for compensation, in lieu of cash, is issued only from the Non-Employee Director Compensation Plan. The outstanding deferred shares will be issued upon the director’s separation from service. (3) T he 720,000 shares of performance stock units (“PSUs”), with a fair value of $ 1.0 million, represent a sign-on grant to Mr. Kanter. The PSUs vest in installments when the following milestones are met: one-third of the PSUs vest when the trailing 90-day volume-weighted average closing stock price (“VWAP”) is $ 4.00 , one-third of the PSUs vest when the VWAP is $ 6.00 and one-third when the VWAP is $ 8.00 . On September 9, 2021, 240,000 PSUs vested as a result of achieving a VWAP of $ 4.00 per share. As a result of net share settlement, of the 240,000 PSUs which vested, only 181,560 shares of common stock were issued. Subsequent to the end of the third quarter of fiscal 2021, an additional 240,000 PSUs vested when the $ 6.00 VWAP was achieved. The remaining 240,000 PSUs will expire on April 1, 2023 if the $ 8.00 VWAP is not achieved by that date. |
Stock Option Activity | Number of Weighted- Weighted- Aggregate Stock Options Outstanding options at beginning of year 3,647,581 $ 1.09 8.5 years $ 810,596 Options granted (1) 1,518,154 $ 0.71 — — Options exercised (2) ( 429,955 ) $ 0.81 2,211,896 Options expired and canceled ( 22,542 ) $ 4.19 — — Outstanding options at end of quarter 4,713,238 $ 0.98 8.3 years $ 28,912,358 Options exercisable at end of quarter 843,431 $ 2.67 5.4 years $ 3,748,935 (1) Primarily represents the grant of stock options to purchase an aggregate of 1,078,913 shares of the Company’s common stock, at an exercise price of $ 0.69 per share, in connection with the time-based grant of awards under its 2021-2023 LTIP, see Note 5, Long-Term Incentive Plans. In March 2021, the Company also granted to active participants of the LTIP a discretionary grant of stock options to purchase an aggregate of 414,337 shares of the Company’s common stock, at an exercise price of $ 0.75 per share, which will vest ratably over 3 years. (2) As a result of net share settlement, of the 429,955 stock options exercised, only 298,150 shares of common stock were issued. |
Equity and Earnings per Share (
Equity and Earnings per Share (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of Number of Shares Outstanding for Basic and Diluted Earnings Per Share | The following table provides a reconciliation of the number of shares outstanding for basic and diluted earnings per share: For the three months ended For the nine months ended October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 (in thousands ) Common stock outstanding: Basic weighted average common shares outstanding 63,699 51,545 63,126 51,127 Common stock equivalents – stock options, restricted stock units and deferred stock (1) 4,945 — 4,252 — Diluted weighted average common shares outstanding 68,644 51,545 67,378 51,127 Co mmon stock equivalents of 134 shares and 172 shares for the three and nine months ended October 31, 2020 were excluded due to the net loss. |
Potential Common Stock Equivalents Excluded from Computation of Diluted Earnings Per Share | The following potential common stock equivalents were excluded from the computation of diluted earnings per share in each period because the exercise price of such options was greater than the average market price per share of common stock for the respective periods or because the unearned compensation associated with stock options, restricted stock units, or deferred stock had an anti-dilutive effect. For the three months ended For the nine months ended October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 (in thousands, except exercise prices) Stock options — 3,676 386 3,676 Restricted stock units — 833 — 833 Deferred stock — 191 — 191 Range of exercise prices of such options — $ 0.53 - $ 7.02 $ 4.19 - $ 5.50 $ 0.53 - $ 7.02 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021USD ($)RenewalOption | Oct. 31, 2020USD ($) | May 02, 2020USD ($) | Oct. 30, 2021USD ($)RenewalOptionSegment | |
Accounting Policies [Line Items] | ||||
Number of reportable segments | Segment | 1 | |||
Number of operating segments | Segment | 3 | |||
Non-cash gain on closing of retail stores | $ 1,200,000 | $ 1,200,000 | $ 2,300,000 | |
Operating lease right-of-use asset impairment charge offset amount | 1,100,000 | 1,100,000 | 2,100,000 | |
Store occupancy cost offset amount | $ 100,000 | $ 100,000 | 200,000 | |
Impairment of long-lived assets | $ 16,300,000 | |||
Impairment of right-of-use asset | 12,500,000 | |||
Short term leases | $ 0 | |||
Operating lease, option to extend | Renewal options are not included in the lease term for automobile and equipment leases because they are not considered reasonably certain of being exercised at lease commencement. Renewal options were not considered for the Company’s corporate headquarters and distribution center lease, which was entered into in 2006 and was for an initial 20-year term | |||
Store | ||||
Accounting Policies [Line Items] | ||||
Operating lease, option to extend | The Company’s store leases typically contain options that permit renewals for additional periods of up to five years each. In general, for store leases with an initial term of 10 years or more, the options to extend are not considered reasonably certain at lease commencement. For stores leases with an initial term of 5 years, the Company evaluates each lease independently and, only when the Company considers it reasonably certain that it will exercise an option to extend, will the associated payment of that option be included in the measurement of the right-of-use asset and lease liability. | |||
Operating lease renewal term | 5 years | 5 years | ||
Store | Maximum | ||||
Accounting Policies [Line Items] | ||||
Operating lease renewal term | 5 years | 5 years | ||
Operating lease initial term | 10 years | 10 years | ||
Store | Minimum | ||||
Accounting Policies [Line Items] | ||||
Operating lease initial term | 5 years | 5 years | ||
Corporate Headquarter | ||||
Accounting Policies [Line Items] | ||||
Operating lease renewal term | 5 years | 5 years | ||
Operating lease initial term | 20 years | 20 years | ||
Number of renewal options | RenewalOption | 6 | 6 | ||
Property and Equipment | ||||
Accounting Policies [Line Items] | ||||
Impairment of long-lived assets | $ 3,800,000 |
Basis of Presentation - Other C
Basis of Presentation - Other Comprehensive Income (Loss) and Reclassifications from AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | $ 34,426 | $ 7,385 | $ (4,077) | $ 58,423 | |
Other comprehensive income, net of tax | 79 | 247 | 193 | 703 | |
Ending Balance | 47,733 | 1,057 | 47,733 | 1,057 | |
Pension Plans | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (6,068) | (5,983) | (6,224) | (6,478) | |
Other comprehensive income (loss) before reclassifications, net of taxes | 90 | 77 | 270 | 231 | |
Amounts reclassified from accumulated other comprehensive income, net of taxes | [1] | (13) | 170 | (37) | 511 |
Other comprehensive income, net of tax | 77 | 247 | 233 | 742 | |
Ending Balance | (5,991) | (5,736) | (5,991) | (5,736) | |
Foreign Currency | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (39) | 8 | 3 | 47 | |
Other comprehensive income (loss) before reclassifications, net of taxes | 2 | (40) | (39) | ||
Other comprehensive income, net of tax | 2 | (40) | (39) | ||
Ending Balance | (37) | 8 | (37) | 8 | |
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (6,107) | (5,975) | (6,221) | (6,431) | |
Other comprehensive income (loss) before reclassifications, net of taxes | 92 | 77 | 230 | 192 | |
Amounts reclassified from accumulated other comprehensive income, net of taxes | [1] | (13) | 170 | (37) | 511 |
Other comprehensive income, net of tax | 79 | 247 | 193 | 703 | |
Ending Balance | $ (6,028) | $ (5,728) | $ (6,028) | $ (5,728) | |
[1] | Includes the amortization of the unrecognized loss on pension plans, which was charged to “Selling, General and Administrative” Expense on the Consolidated Statements of Operations for all periods presented. The amortization of the unrecognized loss, before tax, was $ 170,000 and $ 511,000 for the three and nine months ended October 31, 2020, respectively. For the three and nine months ended October 30, 2021 , the Company recognized income of $ 13,000 and $ 37,000 , respectively, as a result of a change in amortization from average remaining future service to average remaining lifetime. There was no related tax effect for either period. |
Basis of Presentation - Other_2
Basis of Presentation - Other Comprehensive Income (Loss) and Reclassifications from AOCI (Parenthetical) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Selling, general and administrative | $ 41,962,000 | $ 32,820,000 | $ 120,856,000 | $ 90,727,000 |
Tax provision | 94,000 | 27,000 | 548,000 | 71,000 |
Reclassification out of Accumulated Other Comprehensive Income | Pension Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Selling, general and administrative | $ 170,000 | $ 511,000 | ||
Income recognized due to change in amortization | 13,000 | 37,000 | ||
Tax provision | $ 0 | $ 0 |
Basis of Presentation - Valuati
Basis of Presentation - Valuation Assumptions for Stock Options (Details) - $ / shares | 9 Months Ended | |
Oct. 30, 2021 | Oct. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected volatility, minimum | 97.40% | 82.30% |
Expected volatility, maximum | 104.90% | 87.80% |
Risk-free interest rate, minimum | 0.31% | 0.22% |
Risk-free interest rate, maximum | 0.60% | 0.27% |
Weighted average fair value of options granted | $ 0.47 | $ 0.32 |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected life | 3 years | 3 years |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected life | 4 years | 4 years |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) $ in Millions | 9 Months Ended | |
Oct. 30, 2021USD ($)Segment | Jan. 30, 2021USD ($) | |
Revenue From Contract With Customer [Abstract] | ||
Gift card liability, net of breakage | $ 1.1 | $ 2.8 |
Percentage of customers participate in loyalty program | 90.00% | |
Loyalty accrual, net of breakage | $ 2.2 | $ 1 |
Number of reportable segments | Segment | 1 |
Revenue Recognition - Additio_2
Revenue Recognition - Additional Information (Details1) | Oct. 30, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-31 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Cycle of earning and redeeming loyalty points period | 1 year |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Total sales | $ 121,486 | $ 85,171 | $ 371,570 | $ 218,840 |
Retail Segment | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 120,599 | 80,127 | 366,728 | 206,760 |
Retail Segment | Store Sales | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | $ 84,762 | $ 53,363 | $ 258,685 | $ 124,155 |
Retail Segment | Store Sales | Sales Revenue Net | Product Concentration Risk | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales, percentage | 70.30% | 66.60% | 70.50% | 60.00% |
Retail Segment | Direct Sales | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | $ 35,837 | $ 26,764 | $ 108,043 | $ 82,605 |
Retail Segment | Direct Sales | Sales Revenue Net | Product Concentration Risk | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales, percentage | 29.70% | 33.40% | 29.50% | 40.00% |
Wholesale Segment | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | $ 887 | $ 5,044 | $ 4,842 | $ 12,080 |
Debt - Additional Information (
Debt - Additional Information (Details) | Oct. 28, 2021USD ($)d | Sep. 03, 2021USD ($) | Oct. 30, 2021USD ($) | Oct. 30, 2021USD ($) | Oct. 31, 2020USD ($) | Mar. 16, 2021USD ($) | May 24, 2018USD ($) |
Debt Instrument [Line Items] | |||||||
Outstanding obligations paid | $ 100,030,000 | $ 32,071,000 | |||||
Prepayment penalty fees | 1,111,000 | ||||||
FILO Loan - Existing | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, amount outstanding | $ 15,000,000 | ||||||
Revolver Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, amount outstanding | $ 0 | $ 0 | |||||
Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, amount outstanding | $ 0 | ||||||
Line of credit facility, maturity date | May 24, 2023 | ||||||
Outstanding obligations paid | 30,874 | ||||||
Prepayment penalty fees | 0 | ||||||
Credit Facility | Prime-based Borrowings | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility interest rate | 5.00% | 5.00% | |||||
Credit Facility | Minimum | Federal Funds Rate | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, basis spread on variable rate | 1.75% | ||||||
Credit Facility | Minimum | LIBOR-based Borrowings | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, basis spread on variable rate | 2.75% | ||||||
Credit Facility | Maximum | Federal Funds Rate | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, basis spread on variable rate | 2.00% | ||||||
Credit Facility | Maximum | LIBOR-based Borrowings | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, basis spread on variable rate | 3.00% | ||||||
New Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 125,000,000 | ||||||
Debt instrument, interest rate terms | Borrowings made pursuant to the New Credit Facility will be made pursuant to either a Base Rate loan or LIBOR Rate loan, at the Company's option. Base Rate loans will bear interest, at a rate equal to (i) the greater of: (a) the Prime Rate, (b) the Federal Funds effective rate plus 0.50% per annum and (c) the daily LIBOR rate plus 1.00% per annum, plus (ii) a varying percentage, based on the Company’s average excess availability, of either 0.25% or 0.50%. LIBOR Rate loans, which may be either for 1 month or 3 months, will bear interest at (i) the LIBOR rate, or the Benchmark Rate as defined in the credit agreement plus (ii) a varying percentage based on the Company’s average excess availability, of either 1.25% or 1.50%. Any swingline loan will bear interest at a rate equal to the rate of a Base Rate loan, plus a varying percentage based on the Company’s average excess availability, of either 0.25% or 0.50%. | ||||||
Debt instrument, covenant description | (i) 10% of the Revolving Loan Cap (the lesser of the aggregate revolving commitments or the borrowing base) and (ii) $7.5 million, then the Company is required to maintain a minimum consolidated fixed charge coverage ratio of 1.0:1.0 until such time as availability has exceeded the greater of (1) 10% of the Revolving Loan Cap and (2) $7.5 million for 30 consecutive days. | ||||||
Minimum loan cap percentage | 10.00% | ||||||
Line of credit facility | $ 7,500,000 | ||||||
Minimum consolidated fixed charge coverage ratio | 1 | ||||||
Number of consecutive days | d | 30 | ||||||
Line of credit facility, maturity date | Oct. 28, 2026 | ||||||
Line of credit facility, remaining borrowing capacity | $ 74,000,000 | $ 74,000,000 | |||||
Line of credit facility, average monthly outstanding amount | 21,800,000 | ||||||
Line of credit facility, average unused excess availability | $ 49,700,000 | ||||||
Unused line fee | 0.25% | ||||||
New Credit Facility | Federal Funds Rate | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, basis spread on variable rate | 0.50% | ||||||
New Credit Facility | LIBOR-based Borrowings | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, basis spread on variable rate | 1.00% | ||||||
New Credit Facility | Minimum | Federal Funds Rate | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, basis spread on variable rate | 0.25% | ||||||
New Credit Facility | Minimum | LIBOR-based Borrowings | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, basis spread on variable rate | 1.25% | ||||||
New Credit Facility | Maximum | Federal Funds Rate | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, basis spread on variable rate | 0.50% | ||||||
New Credit Facility | Maximum | LIBOR-based Borrowings | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, basis spread on variable rate | 1.50% | ||||||
New Credit Facility | Commercial And Standby Letter Of Credits | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 20,000,000 | ||||||
New Credit Facility | Swing Line Loans | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | ||||||
New Credit Facility | Swing Line Loans | Minimum | Base Rate Loan | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, basis spread on variable rate | 0.25% | ||||||
New Credit Facility | Swing Line Loans | Maximum | Base Rate Loan | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, basis spread on variable rate | 0.50% | ||||||
New Credit Facility | Standby Letters of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Letters of credit outstanding, amount | 2,700,000 | $ 2,700,000 | |||||
New Credit Facility | Documentary Letters of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Letters of credit outstanding, amount | 1,200,000 | 1,200,000 | |||||
New FILO Loan | |||||||
Debt Instrument [Line Items] | |||||||
Prepayment penalty fees | $ 1,100,000 | ||||||
Debt instrument, face amount | $ 17,500,000 | ||||||
Interest rate during period | 8.50% | ||||||
Interest and fees paid | $ 3,100,000 | $ 2,400,000 | |||||
Unamortized debt issuance costs, write-off | $ 800,000 |
Debt - Schedule of Borrowings a
Debt - Schedule of Borrowings and Repayments (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 30, 2021 | Oct. 31, 2020 | |
Line Of Credit Facility [Line Items] | ||
Borrowings | $ 40,297 | $ 60,748 |
Repayments | (100,030) | (32,071) |
Net borrowings (repayments) | $ (59,733) | $ 28,677 |
Leases - Additional Information
Leases - Additional Information (Details) | 9 Months Ended |
Oct. 30, 2021RenewalOption | |
Lessee Lease Description [Line Items] | |
Operating lease renewal option beginning year | 2026 |
Store | |
Lessee Lease Description [Line Items] | |
Operating lease option to extend | 5 years |
Store | Minimum | |
Lessee Lease Description [Line Items] | |
Operating lease initial term | 5 years |
Store | Maximum | |
Lessee Lease Description [Line Items] | |
Operating lease initial term | 10 years |
Operating lease option to extend | 5 years |
Corporate Headquarter | |
Lessee Lease Description [Line Items] | |
Operating lease initial term | 20 years |
Operating lease option to extend | 5 years |
Number of renewal options | 6 |
Equipment and Other Assets | Minimum | |
Lessee Lease Description [Line Items] | |
Operating lease initial term | 3 years |
Equipment and Other Assets | Maximum | |
Lessee Lease Description [Line Items] | |
Operating lease initial term | 5 years |
Leases - Summary of Components
Leases - Summary of Components of Net Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | ||
Leases [Abstract] | |||||
Operating lease cost | $ 11,064 | $ 11,824 | $ 32,698 | $ 35,756 | |
Variable lease costs | [1] | 3,284 | 3,690 | 10,473 | 10,759 |
Total lease costs | $ 14,348 | $ 15,514 | $ 43,171 | $ 46,515 | |
[1] | Variable lease costs include the cost of property taxes, insurance and common area maintenance fees related to its leases. |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | ||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows for operating leases | [1] | $ 43,846 | $ 33,233 |
Non-cash operating activities: | |||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 6,099 | 645 | |
Net decrease in right-of-use assets due to lease modifications associated with rent concessions and lease exits | $ (2,283) | ||
Weighted average remaining lease term | 4 years 1 month 6 days | 4 years 8 months 12 days | |
Weighted average discount rate | 6.95% | 6.46% | |
[1] | The increase in cash payments for the first nine months of fiscal 2021 as compared to the first nine months of fiscal 2020 is due to rent abatements and deferments negotiated in the second quarter of fiscal 2020 for rent obligations while stores were closed. The cash paid for the first nine months of fiscal 2021 also includes prepaid rent for November 2021 of $ 3.8 million. |
Leases - Supplemental Cash Fl_2
Leases - Supplemental Cash Flow Information Related to Leases (Parenthetical) (Details) $ in Millions | Oct. 30, 2021USD ($) |
Leases [Abstract] | |
Prepaid rent | $ 3.8 |
Leases - Schedule of Reconcilia
Leases - Schedule of Reconciliation of Undiscounted Cash Flows Related to Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Oct. 30, 2021 | Jan. 30, 2021 |
Leases [Abstract] | ||
2021 (remaining) | $ 8,999 | |
2022 | 49,149 | |
2023 | 41,972 | |
2024 | 32,173 | |
2025 | 23,755 | |
Thereafter | 16,674 | |
Total minimum lease payments | 172,722 | |
Less: amount of lease payments representing interest | 23,320 | |
Present value of future minimum lease payments | 149,402 | |
Less: current obligations under leases | 37,150 | $ 43,598 |
Long-term lease obligations | $ 112,252 | $ 135,819 |
Long-Term Incentive Plans - Add
Long-Term Incentive Plans - Additional Information (Details) | 9 Months Ended |
Oct. 30, 2021USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Incentive plan performance targets covering period | 3 years |
Vesting terms | The performance period for each LTIP is three years. Awards for any achievement of performance targets will not be granted until the performance targets are achieved and then will be subject to additional vesting through August 31, 2022, August 31, 2023 and August, 31, 2024, respectively. The time-based awards under the 2019-2021 LTIP, 2020-2022 LTIP and 2021-2023 LTIP vest in four equal installments through April 1, 2023, April 1, 2024 and April 1, 2025, respectively. |
2020-2022 LTIP | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Accrued compensation expense | $ 1,300,000 |
Time Based Vesting Schedule | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting percentage | 50.00% |
Time Based Vesting Schedule | 2019-2021 LTIP | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock compensation cost incurred | $ 3,800,000 |
Stock compensation cost, period | 44 months |
Time Based Vesting Schedule | 2020-2022 LTIP | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock compensation cost incurred | $ 3,800,000 |
Stock compensation cost, period | 46 months |
Time Based Vesting Schedule | 2021-2023 LTIP | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock compensation cost incurred | $ 4,000,000 |
Stock compensation cost, period | 49 months |
Performance Based Vesting Schedule | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting percentage | 50.00% |
Performance Based Vesting Schedule | 2019-2021 LTIP | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Accrued compensation expense | $ 1,900,000 |
Performance Based Vesting Schedule | 2021-2023 LTIP | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Accrued compensation expense | $ 600,000 |
RSUs | 2019-2021 LTIP | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting percentage | 50.00% |
Stock Options | 2020-2022 LTIP | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting percentage | 50.00% |
Stock Options | 2021-2023 LTIP | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting percentage | 25.00% |
Cash | 2019-2021 LTIP | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting percentage | 50.00% |
Cash | 2020-2022 LTIP | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting percentage | 50.00% |
Cash | 2021-2023 LTIP | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting percentage | 75.00% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | Aug. 05, 2021 | Aug. 12, 2020 | Aug. 08, 2019 | Aug. 04, 2016 | Oct. 30, 2021 | Oct. 31, 2020 | Jan. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Options granted | 1,518,154 | 3,185,542 | ||||||
Stock compensation expense | $ 938,000 | $ 1,123,000 | ||||||
Non Employee Directors | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of shares of common stock issued | 222,478 | |||||||
Fair value of common stock issued | $ 296,300 | |||||||
RSUs | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares granted | 8,054 | |||||||
Deferred stock | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares granted | 134,999 | |||||||
Time Vested Stock Options, RSU and PSU Awards | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Unrecognized stock compensation cost | $ 1,900,000 | |||||||
Unrecognized stock compensation cost weighted average recognition period | 26 months | |||||||
2016 Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common stock reserve, shares | 5,725,538 | |||||||
Reduction in outstanding reserve for share granted | 1.00% | |||||||
Reduction in outstanding reserve for share granted, full-value award | 1.90% | |||||||
Shares available for grant | 4,800,386 | |||||||
Number of additional shares authorized to increase share reserve | 4,855,000 | 1,740,000 | 2,800,000 | |||||
Share-based compensation arrangement by share-based payment award, description | In accordance with the terms of the 2016 Plan, any shares outstanding under the previous 2006 Incentive Compensation Plan (the “2006 Plan”) at August 4, 2016 that subsequently terminate, expire or are cancelled for any reason without having been exercised or paid are added back and become available for issuance under the 2016 Plan, with stock options being added back on a one-for-one basis and full-value awards being added back on a 1 to 1.9 basis. | |||||||
Stock option outstanding | 4,713,238 | 3,647,581 | ||||||
Percent of shares available for awards | 5.00% | |||||||
Share-based compensation description | Except with respect to 5% of the shares available for awards under the 2016 Plan, no award will become exercisable unless such award has been outstanding for a minimum period of one year from its date of grant. | |||||||
Options granted | [1] | 1,518,154 | ||||||
Shares granted | 8,054 | |||||||
2016 Plan | RSUs | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares granted | [2] | 8,054 | ||||||
2006 Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock option outstanding | 389,509 | |||||||
[1] | Primarily represents the grant of stock options to purchase an aggregate of 1,078,913 shares of the Company’s common stock, at an exercise price of $ 0.69 per share, in connection with the time-based grant of awards under its 2021-2023 LTIP, see Note 5, Long-Term Incentive Plans. In March 2021, the Company also granted to active participants of the LTIP a discretionary grant of stock options to purchase an aggregate of 414,337 shares of the Company’s common stock, at an exercise price of $ 0.75 per share, which will vest ratably over 3 years. | |||||||
[2] | During the first nine months of fiscal 2021, the vesting of RSUs was primarily related to the time-based awards under the Company’s LTIP plans, see Note 5, Long-Term Incentive Plans . |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Share Activity and Stock Option Activity (Details) - $ / shares | Sep. 09, 2021 | Oct. 30, 2021 | Oct. 31, 2020 | |
RSUs | ||||
Total number of shares | ||||
Shares granted | 8,054 | |||
Deferred stock | ||||
Total number of shares | ||||
Shares granted | 134,999 | |||
Performance Share Units | ||||
Total number of shares | ||||
Shares vested/issued | (240,000) | |||
Outstanding non-vested shares at end of quarter | 720,000 | |||
2016 Plan | ||||
Total number of shares | ||||
Outstanding non-vested shares at beginning of year | 1,970,860 | |||
Shares granted | 8,054 | |||
Shares vested/issued | (548,055) | |||
Outstanding non-vested shares at end of quarter | 1,430,859 | |||
Weighted-average Grant-Date Fair value | ||||
Outstanding non-vested shares at beginning of year | $ 1.69 | |||
Shares granted | 0.66 | |||
Shares vested/issued | 2.05 | |||
Outstanding non-vested shares at end of quarter | $ 1.54 | |||
2016 Plan | RSUs | ||||
Total number of shares | ||||
Outstanding non-vested shares at beginning of year | [1] | 815,292 | ||
Shares granted | [1] | 8,054 | ||
Shares vested/issued | [1] | (308,055) | ||
Outstanding non-vested shares at end of quarter | [1] | 515,291 | ||
2016 Plan | Deferred stock | ||||
Total number of shares | ||||
Outstanding non-vested shares at beginning of year | [2] | 435,568 | ||
Outstanding non-vested shares at end of quarter | [2] | 435,568 | ||
2016 Plan | Performance Share Units | ||||
Total number of shares | ||||
Outstanding non-vested shares at beginning of year | [3] | 720,000 | ||
Shares vested/issued | [3] | (240,000) | ||
Outstanding non-vested shares at end of quarter | [3] | 480,000 | ||
[1] | During the first nine months of fiscal 2021, the vesting of RSUs was primarily related to the time-based awards under the Company’s LTIP plans, see Note 5, Long-Term Incentive Plans . | |||
[2] | Represents compensation to certain directors, in lieu of cash, in accordance with their irrevocable elections. Beginning in fiscal 2021, all equity issued to directors for compensation, in lieu of cash, is issued only from the Non-Employee Director Compensation Plan. The outstanding deferred shares will be issued upon the director’s separation from service. | |||
[3] | T he 720,000 shares of performance stock units (“PSUs”), with a fair value of $ 1.0 million, represent a sign-on grant to Mr. Kanter. The PSUs vest in installments when the following milestones are met: one-third of the PSUs vest when the trailing 90-day volume-weighted average closing stock price (“VWAP”) is $ 4.00 , one-third of the PSUs vest when the VWAP is $ 6.00 and one-third when the VWAP is $ 8.00 . On September 9, 2021, 240,000 PSUs vested as a result of achieving a VWAP of $ 4.00 per share. As a result of net share settlement, of the 240,000 PSUs which vested, only 181,560 shares of common stock were issued. Subsequent to the end of the third quarter of fiscal 2021, an additional 240,000 PSUs vested when the $ 6.00 VWAP was achieved. The remaining 240,000 PSUs will expire on April 1, 2023 if the $ 8.00 VWAP is not achieved by that date. |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Share Activity and Stock Option Activity (Parenthetical) (Details) - USD ($) | Nov. 19, 2021 | Sep. 09, 2021 | Feb. 05, 2021 | Oct. 30, 2021 | May 01, 2021 | Oct. 31, 2020 | May 02, 2020 | Oct. 30, 2021 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares granted, vesting terms | The performance period for each LTIP is three years. Awards for any achievement of performance targets will not be granted until the performance targets are achieved and then will be subject to additional vesting through August 31, 2022, August 31, 2023 and August, 31, 2024, respectively. The time-based awards under the 2019-2021 LTIP, 2020-2022 LTIP and 2021-2023 LTIP vest in four equal installments through April 1, 2023, April 1, 2024 and April 1, 2025, respectively. | |||||||
Number of shares sold | 11,111,111 | |||||||
Common Stock | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares granted during the period, fair value | $ 3,000 | $ 3,000 | $ 1,000 | $ 4,000 | ||||
Number of shares sold | 11,111,000 | 298,150 | ||||||
Performance stock units | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of shares outstanding | 720,000 | 720,000 | ||||||
Shares granted, vesting terms | The PSUs vest in installments when the following milestones are met: one-third of the PSUs vest when the trailing 90-day volume-weighted average closing stock price (“VWAP”) is $4.00, one-third of the PSUs vest when the VWAP is $6.00 and one-third when the VWAP is $8.00. On September 9, 2021, 240,000 PSUs vested as a result of achieving a VWAP of $4.00 per share. As a result of net share settlement, of the 240,000 PSUs which vested, only 181,560 shares of common stock were issued. Subsequent to the end of the third quarter of fiscal 2021, an additional 240,000 PSUs vested when the $6.00 VWAP was achieved. The remaining 240,000 PSUs will expire on April 1, 2023 if the $8.00 VWAP is not achieved by that date. | |||||||
Volume-weighted average closing stock price | $ 4 | |||||||
Number of shares vested | 240,000 | |||||||
Performance stock units | Common Stock | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of shares sold | 181,560 | |||||||
Performance stock units | Chief Executive Officer | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares granted during the period, fair value | $ 1,000,000 | |||||||
Performance stock units | When VWAP is $4.00 | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Volume-weighted average closing stock price | $ 4 | $ 4 | ||||||
Performance stock units | When VWAP is $6.00 | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Volume-weighted average closing stock price | 6 | 6 | ||||||
Performance stock units | When VWAP is $8.00 | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Volume-weighted average closing stock price | 8 | 8 | ||||||
Performance stock units | $8.00 VWAP is Not Achieved by That Date | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Volume-weighted average closing stock price | $ 8 | $ 8 | ||||||
Number of shares vested | 240,000 | |||||||
Expiration date | Apr. 1, 2023 | |||||||
Subsequent Event | Performance stock units | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Volume-weighted average closing stock price | $ 6 | |||||||
Number of shares vested | 240,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Jan. 30, 2021 | ||
Number of shares | ||||
Options granted | 1,518,154 | 3,185,542 | ||
Options exercised | (429,955) | |||
2016 Plan | ||||
Number of shares | ||||
Outstanding options at beginning of year | 3,647,581 | |||
Options granted | [1] | 1,518,154 | ||
Options exercised | [2] | (429,955) | ||
Options expired and canceled | (22,542) | |||
Outstanding options at end of quarter | 4,713,238 | 3,647,581 | ||
Options exercisable at end of quarter | 843,431 | |||
2006 Plan | ||||
Number of shares | ||||
Outstanding options at end of quarter | 389,509 | |||
Weighted-average exercise price per option | ||||
Outstanding options at beginning of year | $ 1.09 | |||
Options granted | [1] | 0.71 | ||
Options exercised | [2] | 0.81 | ||
Options expired and canceled | 4.19 | |||
Outstanding options at end of quarter | 0.98 | $ 1.09 | ||
Options exercisable at end of quarter | $ 2.67 | |||
Weighted-average remaining contractual term | ||||
Outstanding options | 8 years 3 months 18 days | 8 years 6 months | ||
Options exercisable at end of quarter | 5 years 4 months 24 days | |||
Aggregate Intrinsic Value | ||||
Outstanding options at beginning of year | $ 810,596 | |||
Options exercised | [2] | 2,211,896 | ||
Outstanding options at end of quarter | 28,912,358 | $ 810,596 | ||
Options exercisable at end of quarter | $ 3,748,935 | |||
[1] | Primarily represents the grant of stock options to purchase an aggregate of 1,078,913 shares of the Company’s common stock, at an exercise price of $ 0.69 per share, in connection with the time-based grant of awards under its 2021-2023 LTIP, see Note 5, Long-Term Incentive Plans. In March 2021, the Company also granted to active participants of the LTIP a discretionary grant of stock options to purchase an aggregate of 414,337 shares of the Company’s common stock, at an exercise price of $ 0.75 per share, which will vest ratably over 3 years. | |||
[2] | As a result of net share settlement, of the 429,955 stock options exercised, only 298,150 shares of common stock were issued. |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity (Parenthetical) (Details) - $ / shares | Feb. 05, 2021 | Oct. 30, 2021 | Jul. 31, 2021 | May 01, 2021 | Oct. 30, 2021 | Oct. 31, 2020 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options granted to purchase shares of common stock | 1,518,154 | 3,185,542 | ||||
Exercise of stock options (in shares) | 429,955 | |||||
Number of shares sold | 11,111,111 | |||||
Common Stock | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Exercise of stock options (in shares) | 423,000 | 7,000 | ||||
Number of shares sold | 11,111,000 | 298,150 | ||||
2021-2023 LTIP | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options granted to purchase shares of common stock | 414,337 | |||||
Options granted, exercise price | $ 0.75 | |||||
Options granted, vesting period | 3 years | |||||
Time Based Vesting Schedule | 2021-2023 LTIP | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options granted to purchase shares of common stock | 1,078,913 | |||||
Options granted, exercise price | $ 0.69 |
Equity and Earnings per Share -
Equity and Earnings per Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | |||||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | Aug. 05, 2021 | Aug. 04, 2021 | Jan. 30, 2021 | |
Earnings Per Share [Line Items] | |||||||
Common stock, shares authorized | 125,000,000 | 125,000,000 | 125,000,000 | 100,000,000 | 100,000,000 | ||
Shares excluded from computation of basic and diluted earnings per share | 134,000 | 172,000 | |||||
Deferred Stock | |||||||
Earnings Per Share [Line Items] | |||||||
Shares excluded from computation of basic and diluted earnings per share | 435,568 | 316,703 | |||||
Stock Options | |||||||
Earnings Per Share [Line Items] | |||||||
Shares excluded from computation of basic and diluted earnings per share | 3,676,000 | 386,000 | 3,676,000 | ||||
Stock Options | Minimum | |||||||
Earnings Per Share [Line Items] | |||||||
Share-based compensation arrangement, expiration date | Jan. 31, 2023 | ||||||
Stock Options | Maximum | |||||||
Earnings Per Share [Line Items] | |||||||
Share-based compensation arrangement, expiration date | Jun. 29, 2028 | ||||||
Performance Stock Units | |||||||
Earnings Per Share [Line Items] | |||||||
Shares excluded from computation of basic and diluted earnings per share | 480,000 | 720,000 | 480,000 | 720,000 |
Equity and Earnings per Share_2
Equity and Earnings per Share - Reconciliation of Number of Shares Outstanding for Basic and Diluted Earning Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | ||
Common stock outstanding: | |||||
Basic weighted average common shares outstanding | 63,699 | 51,545 | 63,126 | 51,127 | |
Common stock equivalents - stock options, restricted stock units and deferred stock | [1] | 4,945 | 4,252 | ||
Diluted weighted average common shares outstanding | 68,644 | 51,545 | 67,378 | 51,127 | |
[1] | Co mmon stock equivalents of 134 shares and 172 shares for the three and nine months ended October 31, 2020 were excluded due to the net loss. |
Equity and Earnings per Share_3
Equity and Earnings per Share - Reconciliation of Number of Shares Outstanding for Basic and Diluted Earning Per Share (Parenthetical) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended |
Oct. 31, 2020 | Oct. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Common stock equivalents | 134 | 172 |
Equity and Earnings per Share_4
Equity and Earnings per Share - Potential Common Stock Equivalents Excluded From Computation of Diluted Earning Per Share (Details) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti dilutive shares | 134 | 172 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti dilutive shares | 3,676 | 386 | 3,676 |
Range of exercise prices of such options, minimum | $ 0.53 | $ 4.19 | $ 0.53 |
Range of exercise prices of such options, maximum | $ 7.02 | $ 5.50 | $ 7.02 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti dilutive shares | 833 | 833 | |
Deferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti dilutive shares | 191 | 191 |
Registered Direct Offering - Co
Registered Direct Offering - Common Stock - Additional Information (Details) - USD ($) $ in Thousands | Feb. 05, 2021 | Oct. 30, 2021 |
Equity [Abstract] | ||
Number of shares sold | 11,111,111 | |
Gross purchase price before payment of offering costs | $ 5,000 | $ 4,375 |
Payment of offering costs | $ 600 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | Jan. 30, 2021 | |
Income Taxes [Line Items] | |||||
Provision for income taxes | $ 94,000 | $ 27,000 | $ 548,000 | $ 71,000 | |
U.S. federal corporate tax rate | 21.00% | ||||
Federal net operating loss carry forwards expiration period minimum | 2022 | ||||
Federal net operating loss carry forwards expiration period maximum | 2037 | ||||
Federal | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards subject to expiration | $ 158,200,000 | ||||
Net operating loss carryforwards not subject to expiration | 43,100,000 | ||||
State and Local Jurisdiction | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | $ 111,300,000 | ||||
State and Local Jurisdiction | Minimum | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards expiration year | 2021 | ||||
State and Local Jurisdiction | Maximum | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards expiration year | 2041 |