Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
May 04, 2019 | May 15, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 4, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | DXLG | |
Entity Registrant Name | DESTINATION XL GROUP, INC. | |
Entity Central Index Key | 0000813298 | |
Current Fiscal Year End Date | --02-01 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 49,865,550 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | May 04, 2019 | Feb. 02, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 6,783 | $ 4,868 |
Accounts receivable | 3,819 | 4,420 |
Inventories | 112,346 | 106,837 |
Prepaid expenses and other current assets | 11,677 | 11,535 |
Total current assets | 134,625 | 127,660 |
Non-current assets: | ||
Property and equipment, net of accumulated depreciation and amortization | 89,477 | 92,525 |
Operating lease right-of-use assets | 209,255 | |
Intangible assets | 1,150 | 1,150 |
Other assets | 3,354 | 4,741 |
Total assets | 437,861 | 226,076 |
Current liabilities: | ||
Current portion of deferred gain on sale-leaseback | 1,465 | |
Accounts payable | 23,409 | 34,418 |
Accrued expenses and other current liabilities | 20,917 | 30,140 |
Operating leases, current | 41,340 | |
Borrowings under credit facility | 64,265 | 41,908 |
Total current liabilities | 149,931 | 107,931 |
Long-term liabilities: | ||
Long-term debt, net of current portion | 14,771 | 14,757 |
Operating leases, non-current | 207,496 | |
Deferred rent and lease incentives | 31,839 | |
Deferred gain on sale-leaseback, net of current portion | 8,793 | |
Other long-term liabilities | 4,034 | 4,116 |
Total long-term liabilities | 226,301 | 59,505 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 1,000,000 shares authorized, none issued | ||
Common stock, $0.01 par value, 100,000,000 shares authorized, 62,576,467 and 62,241,834 shares issued at May 4, 2019 and February 2, 2019, respectively | 626 | 622 |
Additional paid-in capital | 311,057 | 310,393 |
Treasury stock at cost, 12,755,873 shares at May 4, 2019 and February 2, 2019 | (92,658) | (92,658) |
Accumulated deficit | (151,339) | (153,534) |
Accumulated other comprehensive loss | (6,057) | (6,183) |
Total stockholders' equity | 61,629 | 58,640 |
Total liabilities and stockholders' equity | $ 437,861 | $ 226,076 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | May 04, 2019 | Feb. 02, 2019 |
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 | 100,000,000 | 100,000,000 |
Common stock, shares issued | 62,576,467 | 62,241,834 |
Treasury stock, shares | 12,755,873 | 12,755,873 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Income Statement [Abstract] | ||
Sales | $ 112,973 | $ 113,331 |
Cost of goods sold including occupancy costs | 63,560 | 62,643 |
Gross profit | 49,413 | 50,688 |
Expenses: | ||
Selling, general and administrative | 44,611 | 45,400 |
CEO transition costs | 702 | 130 |
Corporate restructuring | 60 | |
Depreciation and amortization | 6,338 | 7,324 |
Total expenses | 51,651 | 52,914 |
Operating loss | (2,238) | (2,226) |
Interest expense, net | (864) | (886) |
Loss before benefit for income taxes | (3,102) | (3,112) |
Benefit for income taxes | (21) | (2) |
Net loss | $ (3,081) | $ (3,110) |
Net loss per share - basic and diluted | $ (0.06) | $ (0.06) |
Weighted-average number of common shares outstanding: | ||
Basic | 49,602 | 48,791 |
Diluted | 49,602 | 48,791 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (3,081,000) | $ (3,110,000) |
Other comprehensive income before taxes: | ||
Foreign currency translation | (24,000) | (145,000) |
Pension plans | 201,000 | 174,000 |
Other comprehensive income before taxes | 177,000 | 29,000 |
Tax provision related to items of other comprehensive income | (51,000) | (26,000) |
Other comprehensive income, net of tax | 126,000 | 3,000 |
Comprehensive loss | $ (2,955,000) | $ (3,107,000) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Feb. 03, 2018 | $ 69,986 | $ 615 | $ 307,557 | $ (92,658) | $ (139,285) | $ (6,243) |
Beginning Balance (in shares) at Feb. 03, 2018 | 61,486 | (12,755) | ||||
Board of directors compensation | 140 | 140 | ||||
Board of directors compensation (in shares) | 37 | |||||
Stock compensation expense | 407 | 407 | ||||
Restricted stock units (RSUs) granted for achievement of performance-based compensation, reclassified from liability to equity | 381 | 381 | ||||
Issuance of common stock, upon RSUs release | $ 2 | (2) | ||||
Issuance of common stock, upon RSUs release (in shares) | 165 | |||||
Issuances of restricted stock, net of cancellations (in shares) | 30 | |||||
Deferred stock vested (in shares) | 3 | |||||
Accumulated other comprehensive income (loss): | ||||||
Pension plan, net of taxes | 129 | 129 | ||||
Foreign currency, net of taxes | (126) | (126) | ||||
Net loss | (3,110) | (3,110) | ||||
Ending Balance at May. 05, 2018 | 67,807 | $ 617 | 308,483 | $ (92,658) | (142,395) | (6,240) |
Ending Balance (in shares) at May. 05, 2018 | 61,721 | (12,755) | ||||
Beginning Balance at Feb. 02, 2019 | 58,640 | $ 622 | 310,393 | $ (92,658) | (153,534) | (6,183) |
Beginning Balance (in shares) at Feb. 02, 2019 | 62,242 | (12,755) | ||||
Board of directors compensation | 142 | 142 | ||||
Board of directors compensation (in shares) | 36 | |||||
Stock compensation expense | 414 | 414 | ||||
Restricted stock units (RSUs) granted for achievement of performance-based compensation, reclassified from liability to equity | 304 | 304 | ||||
Issuance of common stock, upon RSUs release | $ 4 | (4) | ||||
Issuance of common stock, upon RSUs release (in shares) | 374 | |||||
Shares withheld for taxes related to net share settlement of RSUs | (192) | (192) | ||||
Shares withheld for taxes related to net share settlement of RSUs (in shares) | (78) | |||||
Deferred stock vested (in shares) | 2 | |||||
Change in accounting principle due to adoption of ASC 842 | 5,276 | 5,276 | ||||
Accumulated other comprehensive income (loss): | ||||||
Pension plan, net of taxes | 150 | 150 | ||||
Foreign currency, net of taxes | (24) | (24) | ||||
Net loss | (3,081) | (3,081) | ||||
Ending Balance at May. 04, 2019 | $ 61,629 | $ 626 | $ 311,057 | $ (92,658) | $ (151,339) | $ (6,057) |
Ending Balance (in shares) at May. 04, 2019 | 62,576 | (12,755) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (3,081) | $ (3,110) |
Adjustments to reconcile net loss to net cash used for operating activities: | ||
Amortization of deferred gain on sale-leaseback | (366) | |
Amortization of deferred debt issuance costs | 35 | 59 |
Depreciation and amortization | 6,338 | 7,324 |
Stock compensation expense | 414 | 407 |
Board of Directors stock compensation | 142 | 140 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 601 | 373 |
Inventories | (5,509) | (2,887) |
Prepaid expenses and other current assets | (142) | (2,299) |
Other assets | (342) | 47 |
Accounts payable | (11,009) | (5,288) |
Operating leases, net | (814) | |
Deferred rent and lease incentives | (764) | |
Accrued expenses and other liabilities | (3,128) | 523 |
Net cash used for operating activities | (16,495) | (5,841) |
Cash flows from investing activities: | ||
Additions to property and equipment, net | (3,734) | (3,308) |
Net cash used for investing activities | (3,734) | (3,308) |
Cash flows from financing activities: | ||
Principal payments on long-term debt | (680) | |
Net borrowings under credit facility | 22,336 | 11,461 |
Net cash provided by financing activities | 22,144 | 10,781 |
Tax withholdings paid related to net share settlements of RSUs | (192) | |
Net increase in cash and cash equivalents | 1,915 | 1,632 |
Cash and cash equivalents: | ||
Beginning of period | 4,868 | 5,362 |
End of period | $ 6,783 | $ 6,994 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
May 04, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation In the opinion of management of Destination XL Group, Inc., a Delaware corporation (formerly known as Casual Male Retail Group, Inc. and, 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 February 2, 2019 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 22, 2019. 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 2019 and fiscal 2018 are 52-week periods ending on February 1, 2020 and February 2, 2019, respectively. Segment Information The Company has historically had two principal operating segments: its stores and direct businesses. The Company considers these two 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. In fiscal 2018, the Company launched a wholesale segment, which the Company considers a third operating segment. However, due to the immateriality of the wholesale segment’s revenues, profits and assets at May 4, 2019, its operating results are aggregated with the retail segment for the first three months of fiscal 2019. Reclassification The Company has reclassified $190,228 in costs, incurred in the first quarter of fiscal 2018 from “Selling, general and administrative” to “CEO transition costs” and “Corporate restructuring.” These costs were initially reported in “Selling, general and administrative” in the first quarter of fiscal 2018. Intangibles In the fourth quarter of fiscal 2018, the Company purchased the rights to the domain name “dxl.com.” The domain name has a carrying value of $1.2 million and is considered an indefinite-lived asset. During the first three months ended May 4, 2019, no event or circumstance occurred which would cause a reduction in the fair value of this intangible asset. 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 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 fair value of long-term debt is classified within Level 2 of the valuation hierarchy. At May 4, 2019, the fair value approximated the carrying amount based upon terms available to the Company for borrowings with similar arrangements and remaining maturities. The fair value of the “dxl.com” domain name, an indefinite-lived asset, is measured on a non-recurring basis in connection with the Company’s annual impairment test. The fair value of the domain name was determined to approximate carrying value, due to its recent acquisition in December, and is classified within Level 3 of the valuation hierarchy. See Intangibles above. 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 and reclassifications from AOCI for the three months ended May 4, 2019 and May 5, 2018, respectively, were as follows: May 4, 2019 May 5, 2018 For the three months ended: (in thousands) Pension Plans Foreign Currency Total Pension Plans Foreign Currency Total Balance at beginning of the quarter $ (5,521 ) $ (662 ) $ (6,183 ) $ (5,840 ) $ (403 ) $ (6,243 ) Other comprehensive income (loss) before reclassifications, net of taxes 28 (24 ) 4 57 (126 ) (69 ) Amounts reclassified from accumulated other comprehensive income, net of taxes (1) 122 — 122 72 — 72 Other comprehensive income (loss) for the period 150 (24 ) 126 129 (126 ) 3 Balance at end of quarter $ (5,371 ) $ (686 ) $ (6,057 ) $ (5,711 ) $ (529 ) $ (6,240 ) (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 $165,000 and $97,000 for the three months ended May 4, 2019 and May 5, 2018, respectively. 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 significant judgment. Actual results and future changes in estimates may differ from the Company’s current estimates. During the first quarter of fiscal 2019, the Company granted performance stock units with a market condition. See Note 6 for disclosure concerning the assumptions and valuation method used to determine the fair value of the award and the associated derived service period over which the associated stock compensation will be recognized. 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 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. There was no material impairment of long-lived assets in the first quarter of fiscal 2019 or fiscal 2018. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842) Leases (Topic 842): Targeted Improvements The Company adopted ASU 2016-02 on February 3, 2019 on a modified retrospective basis and applied the new standard to all leases through a cumulative-effect adjustment to beginning accumulated deficit. As a result, comparative financial information has not been restated and continues to be reported under the accounting standards in effect for the respective periods. On February 3, 2019, the Company recognized leases, primarily related to its stores and corporate headquarters, on its Consolidated Balance Sheet, as right-of use assets of $214.1 million with corresponding lease liabilities of $254.5 million and eliminated certain existing lease-related asset and liabilities as a net adjustment to the right-of-use assets. In connection with this adoption, the Company recorded a transition adjustment, which was a net credit of $5.3 million to opening accumulated deficit. This adjustment reflected the net of (i) the recognition of the Company’s deferred gain from a sale-leaseback of $10.3 million, (ii) the write-off of initial direct costs of $1.2 million and (iii) the recognition of impairments, upon adoption, on certain right-of-use assets totaling $3.8 million. The new standard had a material impact on the Consolidated Balance Sheet as a result of the recognition of the right-of-use assets, the corresponding lease obligations and the net credit to accumulated deficit of $5.3 million. Because the Company recognized the outstanding deferred gain from a sale-leaseback of $10.3 million, with the adoption of the new standard, results of operations will not have the future benefit of approximately $1.5 million, which was the annual amortization being recognized over the initial 20-year term of the sale-leaseback of the Company’s corporate office. The adoption of the new standard had no material impact on Consolidated Statement of Cash Flows. The following is a discussion of the Company’s lease policy under the new lease accounting standard: The Company determines if an arrangement contains a lease at the inception of a contract. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments, 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’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 our automobile and equipment leases because they are not considered reasonably certain of being exercised at lease commencement. Renewal options were not considered for our corporate headquarter 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. 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 ASU 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. 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 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. See Note 4 ‘‘ Leases Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” No other new accounting pronouncements, issued or effective during the first three months of fiscal 2019, have had or are expected to have a significant impact on the Company’s Consolidated Financial Statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
May 04, 2019 | |
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 our 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. 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. An allowance for chargebacks will be established once the Company has sufficient historical experience. For the first three months of fiscal 2019, chargebacks were immaterial. There were no revenues from wholesale for the first three months of fiscal 2018. 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 $1.8 million and $2.4 million at May 4, 2019 and February 2, 2019, respectively. Unredeemed Loyalty Coupons. The Company offers a free loyalty program to its customers for which points accumulate based on the purchase of merchandise. Over 90% of the Company’s customers participate in the loyalty program. Under ASC 606, , 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 $1.1 million and $1.0 million at May 4, 2019 and February 2, 2019, 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 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 (in thousands) May 4, 2019 May 5, 2018 Store sales $ 86,715 78.4 % $ 89,344 78.8 % Direct sales $ 23,833 21.6 % $ 23,967 21.2 % Retail segment $ 110,548 $ 113,311 Wholesale segment 2,425 20 Total sales $ 112,973 $ 113,331 |
Debt
Debt | 3 Months Ended |
May 04, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 3. Debt Credit Agreement with Bank of America, N.A. On May 24, 2018, the Company entered into the Seventh Amended and Restated Credit Agreement with Bank of America, N.A., as agent, providing for a secured $140.0 million credit facility (the “Credit Facility”). The Credit Facility replaced the Company’s previous credit facility with Bank of America. The Credit Facility provides maximum committed borrowings of $125.0 million in revolver loans, with the ability, pursuant to an accordion feature, to increase the Credit Facility by an additional $50.0 million upon the request of the Company and the agreement of the lender(s) participating in the increase (the “Revolving Facility”). The Revolving Facility provides for a sublimit of $20.0 million for commercial and standby letter of credits and up to $15.0 million for swingline loans. The Company’s ability to borrow under the Revolving Facility (the “Loan Cap”) is determined using an availability formula based on eligible assets. The Credit Facility requires the Company to maintain a minimum consolidated fixed charge coverage ratio of 1.0:1.0 if its excess availability under the Credit Facility fails to be equal to or greater than the greater of 10% of the Loan Cap and $7.5 million. The maturity date of the Credit Facility is May 24, 2023. The Company’s obligations under the Credit Facility are secured by a lien on substantially all of its assets. The Credit Facility includes a new $15.0 million “first in, last out” (FILO) term facility (the “FILO loan”), which is discussed below under long-term debt. At May 4, 2019, the Company had outstanding borrowings under the Revolving Facility of $64.6 million, before unamortized debt issuance costs of $0.3 million. Outstanding standby letters of credit were $2.9 million and outstanding documentary letters of credit were $0.5 million. Unused excess availability at May 4, 2019 was $32.3 million. Average monthly borrowings outstanding under the Revolving Facility during the first three months of fiscal 2019 were $56.4 million, resulting in an average unused excess availability of approximately $38.8 million. The Company’s ability to borrow under the Revolving Facility was determined using an availability formula based on eligible assets, with increased advance rates based on seasonality. Borrowings made pursuant to the Revolving Facility bear interest, calculated under 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 0.25% or 0.50%, 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 1.25% or 1.50%. The Company was also subject to an unused line fee of 0.25%. At May 4, 2019, the Company’s prime-based interest rate was 5.75%. At May 4, 2019, the Company had approximately $56.0 million of its outstanding borrowings in LIBOR-based contracts with an interest rate of 3.69%. The LIBOR-based contracts expired on May 6, 2019. When a LIBOR-based borrowing expires, the borrowings reverted back to prime-based borrowings unless the Company enters into a new LIBOR-based borrowing arrangement. The fair value of the amount outstanding under the Revolving Facility at May 4, 2019 approximated the carrying value. Long-Term Debt Long-term debt is as follows: (in thousands) May 4, 2019 February 2, 2019 FILO Loan $ 15,000 $ 15,000 Less: unamortized debt issuance costs (229 ) (243 ) Total long-term debt 14,771 14,757 Less: current portion of long-term debt — — Long-term debt, net of current portion $ 14,771 $ 14,757 The total borrowing capacity under the FILO loan is based on a borrowing base, generally defined as a specified percentage of the value of eligible accounts, including certain trade names, that step down over time, plus a specified percentage of the value of eligible inventory that steps down over time. There can be no voluntary prepayments on the FILO loan during the first year. After its one-year anniversary, the FILO loan can be repaid, in whole or in part, subject to certain payment conditions. The term loan expires on May 24, 2023, if not repaid in full prior to that date. Borrowings made under the FILO loan will bear interest, calculated under either the Federal Funds rate or the LIBOR rate, at a rate equal to the following: (a) the Federal Funds rate plus a carrying 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%. At May 4, 2019, the outstanding balance of $15.0 million was in a 2-month LIBOR-based contract with an interest rate of 5.29%. The LIBOR-based contract expires on June 9, 2019. When a LIBOR-based contract expires, the Company can enter into a new LIBOR-based borrowing arrangement. |
Leases
Leases | 3 Months Ended |
May 04, 2019 | |
Leases [Abstract] | |
Leases | 4. Leases The Company leases all of its store locations and its corporate headquarters, which also includes its distribution center, under 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 successive 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. The following table is a summary of the Company’s components of net lease cost for the three months ended May 4, 2019: (in thousands) Operating lease cost (1) $ 13,253 Short-term lease costs (2) — Variable lease costs (1) 4,045 Total lease costs $ 17,298 (1) Lease costs related to store locations are included in Cost of Goods Sold Including Occupancy on the Consolidated Statement of Operations and expenses and lease costs related to the corporate headquarters, automobile and equipment leases are included in Selling, General and Administrative expenses on the Consolidated Statement of Operations. (2) For the first quarter of fiscal 2019, the Company had no short-term lease costs. Supplemental cash flow information related to leases for the three months ended May 4, 2019 is as follows: (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 14,611 Non-cash operating activities: Right-of-use assets obtained in exchange for operating lease liabilities $ 1,851 Supplemental balance sheet information related to leases as of May 4, 2019 is as follows: Operating leases: Weighted average remaining lease term 5.8 yrs. Weighted average discount rate 7.08 % 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 May 4, 2019: (in thousands) 2019 (remaining) $ 43,328 2020 54,775 2021 53,429 2022 48,510 2023 40,275 Thereafter 64,582 Total minimum lease payments $ 304,899 Less: amount of lease payments representing interest 56,063 Present value of future minimum lease payments $ 248,836 Less: current obligations under leases 41,340 Long-term lease obligations $ 207,496 As previously disclosed in the Company's Consolidated Financial Statements for the year ending February 2, 2019, future minimum lease payments for noncancelable operating leases, under the previous lease accounting standard, were as follows at February 2, 2019: (in thousands) 2019 $ 57,364 2020 52,699 2021 50,380 2022 45,061 2023 36,605 Thereafter 56,638 Total minimum lease payments $ 298,747 |
Long-Term Incentive Plans
Long-Term Incentive Plans | 3 Months Ended |
May 04, 2019 | |
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 May 4, 2019, the Company has two active LTIPs, its 2017-2018 LTIP and 2018-2020 LTIP. Each participant in the plan 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. All time-based awards for both the 2017-2018 LTIP and the 2018-2020 LTIP were granted on the effective date on each LTIP and all awards were in restricted stock units (RSUs). 2017-2018 LTIP The performance targets for the Company’s 2017-2018 LTIP were approved by the Compensation Committee of the Board of Directors (the” Compensation Committee”) on March 31, 2017 and covered a two-year period performance period, which ended on February 2, 2019. Awards for any achievement of performance targets are not granted until the performance targets are achieved and then are subject to additional vesting through August 31 following the end of the applicable performance period. The time-vested portion of the 2017-2018 LTIP vests in two installments with 50% of the time-vested portion vesting on April 1, 2019 and 50% vesting on April 1, 2020. In the first quarter of fiscal 2019, the Compensation Committee approved a 25% payout of its performance targets for the 2017-2018 LTIP, resulting in awards totaling $0.5 million, with a grant date of March 19, 2019. On that date, the Company granted 150,299 RSUs, which will vest, net of any forfeitures, on August 31, 2019. In conjunction with the grant of the RSUs, the Company reclassified $0.3 million of the liability accrual from “Accrued expenses and other current liabilities” to “Additional paid-in capital” in the first quarter of fiscal 2019. See the Consolidated Statement of Changes in Stockholders’ Equity. In addition to the performance awards, the Company expects to incur stock-based compensation of approximately $2.0 million for its time-based awards, which is being expensed over thirty-six months, through April 1, 2020. 2018-2020 LTIP In June 2018, the Company amended its LTIP to, among other things, extend the performance period for awards to three years, beginning with grants in fiscal 2018. On October 24, 2018, the Compensation Committee established performance targets for the 2018-2020 LTIP. 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, 2021. The time-vested portion of the award vests in four equal installments, vesting on October 24, 2019, April 1, 2020, April 1, 2021 and April 1, 2022. Assuming that the Company achieves the performance target at target levels and all time-based awards vest, the compensation expense associated with the 2018-2020 LTIP is estimated to be approximately $4.1 million. Approximately half of the compensation expense relates to the time-vested RSUs, which is being expensed straight-line over forty-one months. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
May 04, 2019 | |
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. At May 4, 2019 the Company had 2,341,884 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 May 4, 2019, there are 784,251 stock options that remain 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 Company’s 2006 Plan and 2016 Plan, on a combined basis, for the first three months of fiscal 2019: Restricted shares Restricted stock units (1) Deferred shares (2) Fully-vested shares (3) Performance stock units (4) Total number of shares Weighted-average grant-date fair value Shares Outstanding non-vested shares at beginning of year 30,000 1,372,628 204,040 — — 1,606,668 $ 2.93 Shares granted — 390,299 19,371 29,410 720,000 1,159,080 $ 1.83 Shares vested/issued (10,000 ) (374,202 ) (2,575 ) (29,410 ) — (416,187 ) $ 3.39 Shares canceled — — — — — — $ - Outstanding non-vested shares at end of quarter 20,000 1,388,725 220,836 — 720,000 2,349,561 $ 2.31 (1) During the first quarter of fiscal 2019, the Company granted 150,299 RSUs in connection with the partial achievement of performance targets under the 2017-2018 LTIP, see Note 5, Long-Term Incentive Plans (2) The 19,371 shares of deferred stock, with a fair value of $49,391, represent compensation to certain directors in lieu of cash, in accordance with their irrevocable elections. The shares of deferred stock will vest three years from the date of grant or at separation of service, based on the irrevocable election of each director. (3) During the first quarter of fiscal 2019, the Company granted 29,410 shares of stock, with a fair value of approximately $74,996, to certain directors as compensation in lieu of cash, in accordance with their irrevocable elections. Directors are required to elect 50% of their quarterly retainer in equity. Any shares in excess of the minimum required election are issued from the Company’s Fourth Amended and Restated Non-Employee Director Compensation Plan (“Non-Employee Director Compensation Plan”). (4) On February 19, 2019, the Company granted 720,000 shares of performance stock units (“PSUs”), with a fair value of $1.0 million, 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. All PSUs will expire on April 1, 2023 if no performance metric is achieved. The $1.0 million is being expensed over the respective derived service periods of each tranche of 16 months, 25 months and 30 months, respectively. The respective fair value and derived service periods assigned to the PSUs were determined using a Monte Carlo model based on: the Company’s historical volatility of 55.9%, a term of 4.1 years, stock price on the date of grant of $2.50 per share, a risk-free rate of 2.5% and a cost of equity of 9.5%. Number of shares Weighted-average exercise price per option Weighted-average remaining contractual term Aggregate intrinsic value Stock Options Outstanding options at beginning of year 957,400 $ 4.50 5.1 years $ 16,878 Options granted — — — Options expired and canceled — — — Options exercised — — — Outstanding options at end of quarter 957,400 $ 4.50 4.8 years $ 2,850 Options exercisable at end of quarter 849,808 $ 4.76 4.2 years $ 1,900 Valuation Assumptions For the first three months of fiscal 2019, the Company granted 720,000 PSUs, 390,299 RSUs and 19,371 shares of deferred stock. For the first three months of fiscal 2018, the Company granted 138,888 stock options, 56,080 shares of restricted stock, 305,161 RSUs and 21,494 shares of deferred stock. Unless otherwise specified by the Compensation Committee, RSUs, restricted stock and deferred stock are valued using the closing price of the Company’s common stock on the day immediately preceding the date of grant. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model. There were no stock options granted in the first quarter of fiscal 2019. The following assumptions were used for grants for the first quarter of fiscal 2018: May 5, 2018 Expected volatility 48.9 % Risk-free interest rate 2.55 % Expected life 4.5 yrs Dividend rate — Non-Employee Director Compensation Plan The Company granted 6,862 shares of common stock, with a fair value of approximately $17,498, to certain of its non-employee directors as compensation in lieu of cash in the first three months of fiscal 2019. Stock Compensation Expense The Company recognized total stock-based compensation expense of $0.4 million and $0.4 million for the first three months of fiscal 2019 and fiscal 2018, respectively. The total compensation cost related to time-vested stock options, restricted stock, RSU and PSU awards not yet recognized as of May 4, 2019 was approximately $3.3 million, net of estimated forfeitures, which will be expensed over a weighted average remaining life of 30 months. |
Earnings per Share
Earnings per Share | 3 Months Ended |
May 04, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 7. 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 May 4, 2019 May 5, 2018 (in thousands ) Common stock outstanding: Basic weighted average common shares outstanding 49,602 48,791 Common stock equivalents – stock options and restricted stock (1) — — Diluted weighted average common shares outstanding 49,602 48,791 (1) Common stock equivalents of 525 shares and 377 shares for the three months ended May 4, 2019 and May 5, 2018, respectively, 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 of the unearned compensation associated with either stock options, restricted stock units, restricted or deferred stock had an anti-dilutive effect. For the three months ended May 4, 2019 May 5, 2018 (in thousands, except exercise prices) Stock options 942 1,242 Restricted stock units 1,105 316 Restricted and deferred stock 39 65 Range of exercise prices of such options $2.00 - $1.85 - The above options, which were outstanding at May 4, 2019, expire from March 19, 2020 to June 29, 2028. Shares of unvested time-based restricted stock of 20,000 at May 4, 2019 and 66,666 shares at May 5, 2018 were excluded from the computation of basic earnings per share and will continue to be excluded until such shares vest. All 20,000 shares of restricted stock outstanding at May 4, 2019 are considered issued and outstanding. Each share of restricted stock has all of the rights of a holder of the Company’s common stock, including, but not limited to, the right to vote and the right to receive dividends, which rights are forfeited if the restricted stock is forfeited. The 720,000 PSUs are excluded from basic and diluted earnings per share until the market condition is achieved. |
Income Taxes
Income Taxes | 3 Months Ended |
May 04, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Since the end of fiscal 2014, the Company has maintained a full valuation allowance against its deferred tax assets. While the Company has projected it will return to profitability, generate taxable income and ultimately emerge from a three-year cumulative loss, based on the Company’s forecast for fiscal 2019, the Company believes that a full valuation allowance remains appropriate at this time. Realization of the Company’s deferred tax assets is dependent on generating sufficient taxable income in the near term. At May 4, 2019, the Company had total deferred tax assets of $58.7 million, total deferred tax liabilities of $11.0 million and a valuation allowance of $47.7 million. As of May 4, 2019, for federal income tax purposes, the Company has net operating loss carryforwards of $141.5 million, which will expire from fiscal 2022 through fiscal 2036 and net operating loss carryforwards of $21.7 million that are not subject to expiration. For state income tax purposes, the Company has $91.9 million of net operating losses that are available to offset future taxable income, which will expire from fiscal 2019 through fiscal 2039. Additionally, the Company has $3.4 million of net operating loss carryforwards related to the Company’s operations in Canada, which will expire from fiscal 2025 through fiscal 2039. The Company’s financial statements reflect the expected future tax consequences of uncertain tax positions that the Company has taken or expects to take on a tax return, based solely on the technical merits of the tax position. The liability for unrecognized tax benefits at May 4, 2019 was approximately $2.0 million and was associated with a prior tax position related to exiting the Company’s direct business in Europe during fiscal 2013. The amount of unrecognized tax benefits has been presented as a reduction in the reported amounts of the Company’s federal and state net operating losses carryforwards. No penalties or interest have been accrued on this liability because the carryforwards have not yet been utilized. The reversal of this liability would result in a tax benefit being recognized in the period in which the Company determines the liability is no longer necessary. The discrete tax rate method was used for calculating tax expense for the first quarter of fiscal 2019 and fiscal 2018. The Company’s tax provision for the first quarter of fiscal 2019 and fiscal 2018 included tax expense of $51,000 and $26,000, respectively, in other comprehensive income (loss), which resulted in a tax benefit on the Consolidated Statement of Operations related to the corresponding decrease in valuation allowance, partially offset by a tax expense, primarily for certain states’ margin tax. |
CEO Transition Costs
CEO Transition Costs | 3 Months Ended |
May 04, 2019 | |
Related Party Transactions [Abstract] | |
CEO Transition Costs | 9. CEO Transition Costs In connection with Mr. Levin’s retirement and the appointment of Mr. Kanter as the Company’s President and Chief Executive Officer, the Company has incurred certain transition costs. For the first quarter of fiscal 2019 and 2018, the Company has incurred $0.7 million and $0.1 million, respectively, related to CEO search costs, Acting CEO consulting costs, housing allowance and legal fees. In addition, in accordance with the terms of the transition agreement between the Company and Mr. Levin, the Company is accruing for estimated future cash payments that Mr. Levin will be entitled to under his transition agreement and existing performance plans, if and when such targets are achieved. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
May 04, 2019 | |
Accounting Policies [Abstract] | |
Segment Information | Segment Information The Company has historically had two principal operating segments: its stores and direct businesses. The Company considers these two 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. In fiscal 2018, the Company launched a wholesale segment, which the Company considers a third operating segment. However, due to the immateriality of the wholesale segment’s revenues, profits and assets at May 4, 2019, its operating results are aggregated with the retail segment for the first three months of fiscal 2019. |
Reclassification | Reclassification The Company has reclassified $190,228 in costs, incurred in the first quarter of fiscal 2018 from “Selling, general and administrative” to “CEO transition costs” and “Corporate restructuring.” These costs were initially reported in “Selling, general and administrative” in the first quarter of fiscal 2018. |
Intangibles | Intangibles In the fourth quarter of fiscal 2018, the Company purchased the rights to the domain name “dxl.com.” The domain name has a carrying value of $1.2 million and is considered an indefinite-lived asset. During the first three months ended May 4, 2019, no event or circumstance occurred which would cause a reduction in the fair value of this intangible asset. |
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 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 fair value of long-term debt is classified within Level 2 of the valuation hierarchy. At May 4, 2019, the fair value approximated the carrying amount based upon terms available to the Company for borrowings with similar arrangements and remaining maturities. The fair value of the “dxl.com” domain name, an indefinite-lived asset, is measured on a non-recurring basis in connection with the Company’s annual impairment test. The fair value of the domain name was determined to approximate carrying value, due to its recent acquisition in December, and is classified within Level 3 of the valuation hierarchy. See Intangibles above. 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 and reclassifications from AOCI for the three months ended May 4, 2019 and May 5, 2018, respectively, were as follows: May 4, 2019 May 5, 2018 For the three months ended: (in thousands) Pension Plans Foreign Currency Total Pension Plans Foreign Currency Total Balance at beginning of the quarter $ (5,521 ) $ (662 ) $ (6,183 ) $ (5,840 ) $ (403 ) $ (6,243 ) Other comprehensive income (loss) before reclassifications, net of taxes 28 (24 ) 4 57 (126 ) (69 ) Amounts reclassified from accumulated other comprehensive income, net of taxes (1) 122 — 122 72 — 72 Other comprehensive income (loss) for the period 150 (24 ) 126 129 (126 ) 3 Balance at end of quarter $ (5,371 ) $ (686 ) $ (6,057 ) $ (5,711 ) $ (529 ) $ (6,240 ) (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 $165,000 and $97,000 for the three months ended May 4, 2019 and May 5, 2018, respectively. |
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 significant judgment. Actual results and future changes in estimates may differ from the Company’s current estimates. During the first quarter of fiscal 2019, the Company granted performance stock units with a market condition. See Note 6 for disclosure concerning the assumptions and valuation method used to determine the fair value of the award and the associated derived service period over which the associated stock compensation will be recognized. |
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 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. There was no material impairment of long-lived assets in the first quarter of fiscal 2019 or fiscal 2018. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842) Leases (Topic 842): Targeted Improvements The Company adopted ASU 2016-02 on February 3, 2019 on a modified retrospective basis and applied the new standard to all leases through a cumulative-effect adjustment to beginning accumulated deficit. As a result, comparative financial information has not been restated and continues to be reported under the accounting standards in effect for the respective periods. On February 3, 2019, the Company recognized leases, primarily related to its stores and corporate headquarters, on its Consolidated Balance Sheet, as right-of use assets of $214.1 million with corresponding lease liabilities of $254.5 million and eliminated certain existing lease-related asset and liabilities as a net adjustment to the right-of-use assets. In connection with this adoption, the Company recorded a transition adjustment, which was a net credit of $5.3 million to opening accumulated deficit. This adjustment reflected the net of (i) the recognition of the Company’s deferred gain from a sale-leaseback of $10.3 million, (ii) the write-off of initial direct costs of $1.2 million and (iii) the recognition of impairments, upon adoption, on certain right-of-use assets totaling $3.8 million. The new standard had a material impact on the Consolidated Balance Sheet as a result of the recognition of the right-of-use assets, the corresponding lease obligations and the net credit to accumulated deficit of $5.3 million. Because the Company recognized the outstanding deferred gain from a sale-leaseback of $10.3 million, with the adoption of the new standard, results of operations will not have the future benefit of approximately $1.5 million, which was the annual amortization being recognized over the initial 20-year term of the sale-leaseback of the Company’s corporate office. The adoption of the new standard had no material impact on Consolidated Statement of Cash Flows. The following is a discussion of the Company’s lease policy under the new lease accounting standard: The Company determines if an arrangement contains a lease at the inception of a contract. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments, 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’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 our automobile and equipment leases because they are not considered reasonably certain of being exercised at lease commencement. Renewal options were not considered for our corporate headquarter 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. 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 ASU 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. 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 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. See Note 4 ‘‘ Leases |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” No other new accounting pronouncements, issued or effective during the first three months of fiscal 2019, 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) | 3 Months Ended |
May 04, 2019 | |
Accounting Policies [Abstract] | |
Other Comprehensive Income 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 and reclassifications from AOCI for the three months ended May 4, 2019 and May 5, 2018, respectively, were as follows: May 4, 2019 May 5, 2018 For the three months ended: (in thousands) Pension Plans Foreign Currency Total Pension Plans Foreign Currency Total Balance at beginning of the quarter $ (5,521 ) $ (662 ) $ (6,183 ) $ (5,840 ) $ (403 ) $ (6,243 ) Other comprehensive income (loss) before reclassifications, net of taxes 28 (24 ) 4 57 (126 ) (69 ) Amounts reclassified from accumulated other comprehensive income, net of taxes (1) 122 — 122 72 — 72 Other comprehensive income (loss) for the period 150 (24 ) 126 129 (126 ) 3 Balance at end of quarter $ (5,371 ) $ (686 ) $ (6,057 ) $ (5,711 ) $ (529 ) $ (6,240 ) (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 $165,000 and $97,000 for the three months ended May 4, 2019 and May 5, 2018, respectively. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
May 04, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Disaggregation of Revenue | As noted above under Segment Information 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 (in thousands) May 4, 2019 May 5, 2018 Store sales $ 86,715 78.4 % $ 89,344 78.8 % Direct sales $ 23,833 21.6 % $ 23,967 21.2 % Retail segment $ 110,548 $ 113,311 Wholesale segment 2,425 20 Total sales $ 112,973 $ 113,331 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
May 04, 2019 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Long-term debt is as follows: (in thousands) May 4, 2019 February 2, 2019 FILO Loan $ 15,000 $ 15,000 Less: unamortized debt issuance costs (229 ) (243 ) Total long-term debt 14,771 14,757 Less: current portion of long-term debt — — Long-term debt, net of current portion $ 14,771 $ 14,757 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
May 04, 2019 | |
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 months ended May 4, 2019: (in thousands) Operating lease cost (1) $ 13,253 Short-term lease costs (2) — Variable lease costs (1) 4,045 Total lease costs $ 17,298 (1) Lease costs related to store locations are included in Cost of Goods Sold Including Occupancy on the Consolidated Statement of Operations and expenses and lease costs related to the corporate headquarters, automobile and equipment leases are included in Selling, General and Administrative expenses on the Consolidated Statement of Operations. (2) For the first quarter of fiscal 2019, the Company had no short-term lease costs. |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases for the three months ended May 4, 2019 is as follows: (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 14,611 Non-cash operating activities: Right-of-use assets obtained in exchange for operating lease liabilities $ 1,851 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases as of May 4, 2019 is as follows: Operating leases: Weighted average remaining lease term 5.8 yrs. Weighted average discount rate 7.08 % |
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 May 4, 2019: (in thousands) 2019 (remaining) $ 43,328 2020 54,775 2021 53,429 2022 48,510 2023 40,275 Thereafter 64,582 Total minimum lease payments $ 304,899 Less: amount of lease payments representing interest 56,063 Present value of future minimum lease payments $ 248,836 Less: current obligations under leases 41,340 Long-term lease obligations $ 207,496 |
Schedule of Future Minimum Lease Payment for Noncancelable Operating Lease | As previously disclosed in the Company's Consolidated Financial Statements for the year ending February 2, 2019, future minimum lease payments for noncancelable operating leases, under the previous lease accounting standard, were as follows at February 2, 2019: (in thousands) 2019 $ 57,364 2020 52,699 2021 50,380 2022 45,061 2023 36,605 Thereafter 56,638 Total minimum lease payments $ 298,747 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
May 04, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Valuation Assumptions for Stock Options | The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model. There were no stock options granted in the first quarter of fiscal 2019. The following assumptions were used for grants for the first quarter of fiscal 2018: May 5, 2018 Expected volatility 48.9 % Risk-free interest rate 2.55 % Expected life 4.5 yrs Dividend rate — |
Employee Stock Plan, 2006 Plan and 2016 Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Restricted Stock Activity | The following tables summarize the share activity and stock option activity for the Company’s 2006 Plan and 2016 Plan, on a combined basis, for the first three months of fiscal 2019: Restricted shares Restricted stock units (1) Deferred shares (2) Fully-vested shares (3) Performance stock units (4) Total number of shares Weighted-average grant-date fair value Shares Outstanding non-vested shares at beginning of year 30,000 1,372,628 204,040 — — 1,606,668 $ 2.93 Shares granted — 390,299 19,371 29,410 720,000 1,159,080 $ 1.83 Shares vested/issued (10,000 ) (374,202 ) (2,575 ) (29,410 ) — (416,187 ) $ 3.39 Shares canceled — — — — — — $ - Outstanding non-vested shares at end of quarter 20,000 1,388,725 220,836 — 720,000 2,349,561 $ 2.31 (1) During the first quarter of fiscal 2019, the Company granted 150,299 RSUs in connection with the partial achievement of performance targets under the 2017-2018 LTIP, see Note 5, Long-Term Incentive Plans (2) The 19,371 shares of deferred stock, with a fair value of $49,391, represent compensation to certain directors in lieu of cash, in accordance with their irrevocable elections. The shares of deferred stock will vest three years from the date of grant or at separation of service, based on the irrevocable election of each director. (3) During the first quarter of fiscal 2019, the Company granted 29,410 shares of stock, with a fair value of approximately $74,996, to certain directors as compensation in lieu of cash, in accordance with their irrevocable elections. Directors are required to elect 50% of their quarterly retainer in equity. Any shares in excess of the minimum required election are issued from the Company’s Fourth Amended and Restated Non-Employee Director Compensation Plan (“Non-Employee Director Compensation Plan”). (4) On February 19, 2019, the Company granted 720,000 shares of performance stock units (“PSUs”), with a fair value of $1.0 million, 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. All PSUs will expire on April 1, 2023 if no performance metric is achieved. The $1.0 million is being expensed over the respective derived service periods of each tranche of 16 months, 25 months and 30 months, respectively. The respective fair value and derived service periods assigned to the PSUs were determined using a Monte Carlo model based on: the Company’s historical volatility of 55.9%, a term of 4.1 years, stock price on the date of grant of $2.50 per share, a risk-free rate of 2.5% and a cost of equity of 9.5%. |
Stock Option Activity | Number of shares Weighted-average exercise price per option Weighted-average remaining contractual term Aggregate intrinsic value Stock Options Outstanding options at beginning of year 957,400 $ 4.50 5.1 years $ 16,878 Options granted — — — Options expired and canceled — — — Options exercised — — — Outstanding options at end of quarter 957,400 $ 4.50 4.8 years $ 2,850 Options exercisable at end of quarter 849,808 $ 4.76 4.2 years $ 1,900 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
May 04, 2019 | |
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 May 4, 2019 May 5, 2018 (in thousands ) Common stock outstanding: Basic weighted average common shares outstanding 49,602 48,791 Common stock equivalents – stock options and restricted stock (1) — — Diluted weighted average common shares outstanding 49,602 48,791 (1) Common stock equivalents of 525 shares and 377 shares for the three months ended May 4, 2019 and May 5, 2018, respectively, 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 of the unearned compensation associated with either stock options, restricted stock units, restricted or deferred stock had an anti-dilutive effect. For the three months ended May 4, 2019 May 5, 2018 (in thousands, except exercise prices) Stock options 942 1,242 Restricted stock units 1,105 316 Restricted and deferred stock 39 65 Range of exercise prices of such options $2.00 - $1.85 - |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) | Feb. 03, 2019USD ($) | May 04, 2019USD ($)SegmentRenewalOption | Nov. 03, 2018USD ($) | May 05, 2018USD ($) | Feb. 02, 2019USD ($) |
Accounting Policies [Line Items] | |||||
Number of reportable segments | Segment | 1 | ||||
Number of operating segments | Segment | 2 | ||||
Corporate restructuring | $ 60,000 | ||||
Impairment of long-lived assets | $ 0 | 0 | |||
Right-of-use assets | $ 214,100,000 | 209,255,000 | |||
Lease liabilities | 254,500,000 | 248,836,000 | |||
Sale-leaseback transaction, deferred gain | 10,300,000 | 10,300,000 | |||
Cumulative-effect adjustment to opening balance of retained earnings | 5,300,000 | $ 5,300,000 | |||
Write-off of initial direct costs | 1,200,000 | ||||
Impairment of right-of-use asset | 3,800,000 | ||||
Amortization of deferred gain on sale-leaseback | $ 1,500,000 | $ 366,000 | |||
Sale-leaseback transaction, lease term | 20 years | ||||
Operating lease, option to extend | Renewal options were not considered for our corporate headquarter 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 | ||||
Store | Maximum | |||||
Accounting Policies [Line Items] | |||||
Operating lease renewal term | 5 years | ||||
Operating lease initial term | 10 years | ||||
Store | Minimum | |||||
Accounting Policies [Line Items] | |||||
Operating lease initial term | 5 years | ||||
Corporate Headquarter | |||||
Accounting Policies [Line Items] | |||||
Operating lease renewal term | 5 years | ||||
Operating lease initial term | 20 years | ||||
Number of renewal options | RenewalOption | 6 | ||||
Domain Name (dxl.com) | |||||
Accounting Policies [Line Items] | |||||
Definite-lived intangible assets, carrying value | $ 1,200,000 | ||||
CEO Transition Costs | |||||
Accounting Policies [Line Items] | |||||
Corporate restructuring | $ 190,228 |
Basis of Presentation - Other C
Basis of Presentation - Other Comprehensive Income and Reclassifications from AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 04, 2019 | May 05, 2018 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 58,640 | $ 69,986 | |
Other comprehensive income, net of tax | 126 | 3 | |
Ending Balance | 61,629 | 67,807 | |
Pension Plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (5,521) | (5,840) | |
Other comprehensive income (loss) before reclassifications, net of taxes | 28 | 57 | |
Amounts reclassified from accumulated other comprehensive income, net of taxes | [1] | 122 | 72 |
Other comprehensive income, net of tax | 150 | 129 | |
Ending Balance | (5,371) | (5,711) | |
Foreign Currency | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (662) | (403) | |
Other comprehensive income (loss) before reclassifications, net of taxes | (24) | (126) | |
Other comprehensive income, net of tax | (24) | (126) | |
Ending Balance | (686) | (529) | |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (6,183) | (6,243) | |
Other comprehensive income (loss) before reclassifications, net of taxes | 4 | (69) | |
Amounts reclassified from accumulated other comprehensive income, net of taxes | [1] | 122 | 72 |
Other comprehensive income, net of tax | 126 | 3 | |
Ending Balance | $ (6,057) | $ (6,240) | |
[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 $165,000 and $97,000 for the three months ended May 4, 2019 and May 5, 2018, respectively. |
Basis of Presentation - Other_2
Basis of Presentation - Other Comprehensive Income and Reclassifications from AOCI (Parenthetical) (Details) - USD ($) | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Selling, general and administrative | $ 44,611,000 | $ 45,400,000 |
Reclassification out of Accumulated Other Comprehensive Income | Pension Plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Selling, general and administrative | $ 165,000 | $ 97,000 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) $ in Millions | 3 Months Ended | |
May 04, 2019USD ($)Segment | Feb. 02, 2019USD ($) | |
Revenue From Contract With Customer [Abstract] | ||
Gift card liability, net of breakage | $ 1.8 | $ 2.4 |
Percentage of customers participate in loyalty program | 90.00% | |
Loyalty accrual, net of breakage | $ 1.1 | $ 1 |
Number of reportable segments | Segment | 1 |
Revenue Recognition - Additio_2
Revenue Recognition - Additional Information (Details1) | May 04, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-05-05 | |
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 | |
May 04, 2019 | May 05, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Total sales | $ 112,973 | $ 113,331 |
Retail Segment | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales | 110,548 | 113,311 |
Retail Segment | Store Sales | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales | $ 86,715 | $ 89,344 |
Retail Segment | Store Sales | Sales Revenue Net | Product Concentration Risk | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales, percentage | 78.40% | 78.80% |
Retail Segment | Direct Sales | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales | $ 23,833 | $ 23,967 |
Retail Segment | Direct Sales | Sales Revenue Net | Product Concentration Risk | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales, percentage | 21.60% | 21.20% |
Wholesale Segment | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales | $ 2,425 | $ 20 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | May 24, 2018 | May 04, 2019 | May 05, 2018 | Feb. 02, 2019 |
Debt Instrument [Line Items] | ||||
Unamortized debt issuance costs | $ 229,000 | $ 243,000 | ||
Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, amount outstanding | $ 140,000,000 | 64,600,000 | ||
Line of credit facility, maximum borrowing capacity | 125,000,000 | |||
Line of credit facility, potential maximum borrowing capacity | $ 50,000,000 | |||
Minimum loan cap percentage | 10.00% | |||
Line of credit facility | $ 7,500,000 | |||
Unamortized debt issuance costs | 300,000 | |||
Line of credit facility, remaining borrowing capacity | 32,300,000 | |||
Line of credit facility, average monthly outstanding amount | 56,400,000 | |||
Line of credit facility, average unused excess availability | $ 38,800,000 | |||
Unused line fee | 0.25% | |||
Credit Facility | LIBOR-based Borrowings | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, amount outstanding | $ 56,000,000 | |||
Line of credit facility interest rate | 3.69% | |||
Line of credit facility, expiration date | May 6, 2019 | |||
Credit Facility | Prime-based Borrowings | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility interest rate | 5.75% | |||
Credit Facility | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument consolidated fixed coverage ratio | 100.00% | |||
Credit Facility | Minimum | Federal Funds Rate | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, basis spread on variable rate | 0.25% | |||
Credit Facility | Minimum | LIBOR-based Borrowings | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, basis spread on variable rate | 1.25% | |||
Credit Facility | Maximum | Federal Funds Rate | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, basis spread on variable rate | 0.50% | |||
Credit Facility | Maximum | LIBOR-based Borrowings | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, basis spread on variable rate | 1.50% | |||
Credit Facility | Commercial And Standby Letter Of Credits | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 20,000,000 | |||
Credit Facility | Swingline Loans | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 15,000,000 | |||
Credit Facility | Standby Letters of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 2,900,000 | |||
Credit Facility | Documentary Letters of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 500,000 | |||
FILO Loan | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | |||
FILO Loan | LIBOR-based Borrowings | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility interest rate | 5.29% | |||
Line of credit facility, expiration date | Jun. 9, 2019 | |||
FILO Loan | Prime-based Borrowings | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, amount outstanding | $ 15,000,000 | |||
FILO Loan | Minimum | Federal Funds Rate | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, basis spread on variable rate | 1.75% | |||
FILO Loan | Minimum | LIBOR-based Borrowings | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, basis spread on variable rate | 2.75% | |||
FILO Loan | Maximum | Federal Funds Rate | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, basis spread on variable rate | 2.00% | |||
FILO Loan | Maximum | LIBOR-based Borrowings | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, basis spread on variable rate | 3.00% |
Debt - Components of Long-Term
Debt - Components of Long-Term Debt (Details) - USD ($) $ in Thousands | May 04, 2019 | Feb. 02, 2019 |
Debt Instrument [Line Items] | ||
Less: unamortized debt issuance costs | $ (229) | $ (243) |
Total long-term debt | 14,771 | 14,757 |
Long-term debt, net of current portion | 14,771 | 14,757 |
FILO Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 15,000 | $ 15,000 |
Leases - Additional Information
Leases - Additional Information (Details) | 3 Months Ended |
May 04, 2019RenewalOption | |
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) | 3 Months Ended | |
May 04, 2019USD ($) | ||
Leases [Abstract] | ||
Operating lease cost | $ 13,253,000 | [1] |
Short-term lease costs | 0 | |
Variable lease costs | 4,045,000 | [1] |
Total lease costs | $ 17,298,000 | |
[1] | Lease costs related to store locations are included in Cost of Goods Sold Including Occupancy on the Consolidated Statement of Operations and expenses and lease costs related to the corporate headquarters, automobile and equipment leases are included in Selling, General and Administrative expenses on the Consolidated Statement of Operations. For the first quarter of fiscal 2019, the Company had no short-term lease costs. |
Leases - Summary of Component_2
Leases - Summary of Components of Net Lease Cost (Parenthetical) (Details) | 3 Months Ended |
May 04, 2019USD ($) | |
Leases [Abstract] | |
Short-term lease costs | $ 0 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands | 3 Months Ended |
May 04, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows for operating leases | $ 14,611 |
Non-cash operating activities: | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 1,851 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) | May 04, 2019 |
Leases [Abstract] | |
Operating Lease Weighted average remaining lease term | 5 years 9 months 18 days |
Operating Lease weighted average discount rate | 7.08% |
Leases - Schedule of Reconcilia
Leases - Schedule of Reconciliation of Undiscounted Cash Flows Related to Operating Lease Liabilities (Details) - USD ($) $ in Thousands | May 04, 2019 | Feb. 03, 2019 |
Leases [Abstract] | ||
2019 (remaining) | $ 43,328 | |
2020 | 54,775 | |
2021 | 53,429 | |
2022 | 48,510 | |
2023 | 40,275 | |
Thereafter | 64,582 | |
Total minimum lease payments | 304,899 | |
Less: amount of lease payments representing interest | 56,063 | |
Present value of future minimum lease payments | 248,836 | $ 254,500 |
Less: current obligations under leases | 41,340 | |
Long-term lease obligations | $ 207,496 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payment for Noncancelable Operating Lease (Details) $ in Thousands | Feb. 02, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 57,364 |
2020 | 52,699 |
2021 | 50,380 |
2022 | 45,061 |
2023 | 36,605 |
Thereafter | 56,638 |
Total minimum lease payments | $ 298,747 |
Long-Term Incentive Plans - Add
Long-Term Incentive Plans - Additional Information (Details) - USD ($) $ in Millions | Mar. 19, 2019 | Jun. 30, 2018 | May 04, 2019 | May 05, 2018 |
First Amended and Restated Long Term Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Incentive plan terms | the Compensation | |||
Incentive plan performance targets covering period | 2 years | |||
Performance-based compensation | 25.00% | |||
Shares granted | $ 0.5 | |||
Second Amended and Restated Long Term Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Incentive plan performance targets covering period | 3 years | |||
Vesting terms | On October 24, 2018, the Compensation Committee established performance targets for the 2018-2020 LTIP. 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, 2021. The time-vested portion of the award vests in four equal installments, vesting on October 24, 2019, April 1, 2020, April 1, 2021 and April 1, 2022. | |||
Time Based Vesting Schedule | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting percentage | 50.00% | |||
Stock compensation cost, period | 36 months | |||
Remaining RSUs vesting date | Apr. 1, 2020 | |||
Time Based Vesting Schedule | First Amended and Restated Long Term Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting percentage | 50.00% | |||
Stock compensation cost incurred | $ 2 | |||
Time Based Vesting Schedule | First Amended and Restated Long Term Incentive Plan | Vesting on April 1 Following the Fiscal Year End | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting percentage | 50.00% | |||
Time Based Vesting Schedule | First Amended and Restated Long Term Incentive Plan | Vesting on April 1 the Succeeding Year | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting percentage | 50.00% | |||
Time Based Vesting Schedule | Second Amended and Restated Long Term Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock compensation cost incurred | $ 4.1 | |||
Stock compensation cost, period | 41 months | |||
Performance Based Vesting Schedule | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting percentage | 50.00% | |||
Performance Based Vesting Schedule | First Amended and Restated Long Term Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting percentage | 50.00% | |||
Performance Based Vesting Schedule | Second Amended and Restated Long Term Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Accrued compensation expense | $ 0.1 | |||
Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares granted during the period | 56,080 | |||
Restricted Stock | First Amended and Restated Long Term Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares granted during the period | 150,299 | |||
Awards vested date | Aug. 31, 2019 | |||
Amount of liability reclassified from accrued expenses and other current liabilities to additional paid-in capital in conjunction with the grant of restricted stock awards | $ 0.3 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | Feb. 19, 2019 | Aug. 04, 2016 | May 04, 2019 | May 05, 2018 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock options granted | 0 | 138,888 | ||
Stock compensation expense | $ 414,000 | $ 407,000 | ||
Non Employee Directors | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares of common stock issued | 6,862 | |||
Fair value of common stock issued | $ 17,498 | |||
Performance stock units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares granted | 720,000 | |||
Number of shares of common stock issued | 720,000 | |||
Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares granted | 56,080 | |||
RSUs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares granted | 390,299 | 305,161 | ||
Deferred stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares granted | 19,371 | 21,494 | ||
Time Vested Stock Options, Restricted Stock, RSU and PSU Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized stock compensation cost | $ 3,300,000 | |||
Unrecognized stock compensation cost weighted average recognition period | 30 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% | |||
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. At May 4, 2019, there are 784,251 stock options that remain outstanding under the 2006 Plan. | |||
Shares available for grant | 2,341,884 | |||
Performance based compensation description | Plan 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. | |||
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. | |||
Two Thousand And Six Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock option outstanding | 784,251 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Activity for Non-Vested Shares under Two Thousand Six And Two Thousand Sixteen Plan (Details) - $ / shares | 3 Months Ended | ||
May 04, 2019 | May 05, 2018 | ||
Restricted Stock | |||
Total number of shares | |||
Shares granted | 56,080 | ||
Restricted stock units | |||
Total number of shares | |||
Shares granted | 390,299 | 305,161 | |
Deferred stock | |||
Total number of shares | |||
Shares granted | 19,371 | 21,494 | |
Performance stock units | |||
Total number of shares | |||
Shares granted | 720,000 | ||
Employee Stock Plan, 2006 Plan and 2016 Plan | |||
Total number of shares | |||
Outstanding non-vested shares at beginning of year | 1,606,668 | ||
Shares granted | 1,159,080 | ||
Shares vested/issued | (416,187) | ||
Outstanding non-vested shares at end of quarter | 2,349,561 | ||
Weighted-average Grant-Date Fair value | |||
Outstanding non-vested shares at beginning of year | $ 2.93 | ||
Shares granted | 1.83 | ||
Shares vested/issued | 3.39 | ||
Outstanding non-vested shares at end of quarter | $ 2.31 | ||
Employee Stock Plan, 2006 Plan and 2016 Plan | Certain Directors | |||
Total number of shares | |||
Shares granted | 29,410 | ||
Employee Stock Plan, 2006 Plan and 2016 Plan | Restricted Stock | |||
Total number of shares | |||
Outstanding non-vested shares at beginning of year | 30,000 | ||
Shares vested/issued | (10,000) | ||
Outstanding non-vested shares at end of quarter | 20,000 | ||
Employee Stock Plan, 2006 Plan and 2016 Plan | Restricted stock units | |||
Total number of shares | |||
Outstanding non-vested shares at beginning of year | [1] | 1,372,628 | |
Shares granted | [1] | 390,299 | |
Shares vested/issued | [1] | (374,202) | |
Outstanding non-vested shares at end of quarter | [1] | 1,388,725 | |
Employee Stock Plan, 2006 Plan and 2016 Plan | Deferred stock | |||
Total number of shares | |||
Outstanding non-vested shares at beginning of year | [2] | 204,040 | |
Shares granted | 19,371 | ||
Shares vested/issued | [2] | (2,575) | |
Outstanding non-vested shares at end of quarter | [2] | 220,836 | |
Employee Stock Plan, 2006 Plan and 2016 Plan | Deferred stock | Certain Directors | |||
Total number of shares | |||
Shares granted | [2] | 19,371 | |
Employee Stock Plan, 2006 Plan and 2016 Plan | Fully-vested shares | |||
Total number of shares | |||
Shares vested/issued | [3] | (29,410) | |
Employee Stock Plan, 2006 Plan and 2016 Plan | Fully-vested shares | Certain Directors | |||
Total number of shares | |||
Shares granted | [3] | 29,410 | |
Employee Stock Plan, 2006 Plan and 2016 Plan | Performance stock units | |||
Total number of shares | |||
Shares granted | [4] | 720,000 | |
Outstanding non-vested shares at end of quarter | [4] | 720,000 | |
[1] | During the first quarter of fiscal 2019, the Company granted 150,299 RSUs in connection with the partial achievement of performance targets under the 2017-2018 LTIP, see Note 5, Long-Term Incentive Plans. In addition, the Company granted, as a signing award, 240,000 time-based RSUs to Mr. Kanter, which will vest equally over four years. As a result of net share settlement, of the 374,202 time-based RSUs which vested during the first quarter of fiscal 2019, only 295,788 shares of common stock were issued. | ||
[2] | The 19,371 shares of deferred stock, with a fair value of $49,391, represent compensation to certain directors in lieu of cash, in accordance with their irrevocable elections. The shares of deferred stock will vest three years from the date of grant or at separation of service, based on the irrevocable election of each director. | ||
[3] | During the first quarter of fiscal 2019, the Company granted 29,410 shares of stock, with a fair value of approximately $74,996, to certain directors as compensation in lieu of cash, in accordance with their irrevocable elections. Directors are required to elect 50% of their quarterly retainer in equity. Any shares in excess of the minimum required election are issued from the Company’s Fourth Amended and Restated Non-Employee Director Compensation Plan (“Non-Employee Director Compensation Plan”). | ||
[4] | On February 19, 2019, the Company granted 720,000 shares of performance stock units (“PSUs”), with a fair value of $1.0 million, 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. All PSUs will expire on April 1, 2023 if no performance metric is achieved. The $1.0 million is being expensed over the respective derived service periods of each tranche of 16 months, 25 months and 30 months, respectively. The respective fair value and derived service periods assigned to the PSUs were determined using a Monte Carlo model based on: the Company’s historical volatility of 55.9%, a term of 4.1 years, stock price on the date of grant of $2.50 per share, a risk-free rate of 2.5% and a cost of equity of 9.5%. |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Activity for Non-Vested Shares under Two Thousand Six And Two Thousand Sixteen Plan (Parenthetical) (Details) - USD ($) | Feb. 19, 2019 | May 04, 2019 | May 05, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share based compensation fair value assumptions historical volatility | 48.90% | |||
Share based compensation fair value assumptions, term | 4 years 6 months | |||
Share based compensation fair value assumptions risk free rate | 2.55% | |||
Deferred stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares granted | 19,371 | 21,494 | ||
Performance stock units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares granted | 720,000 | |||
Number of shares of common stock issued | 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. All PSUs will expire on April 1, 2023 if no performance metric is achieved. | |||
Share based expensed over the respective derived service periods | $ 1,000,000 | |||
Expiration date | Apr. 1, 2023 | |||
Share based compensation fair value assumptions historical volatility | 55.90% | |||
Share based compensation fair value assumptions, term | 4 years 1 month 6 days | |||
Share based compensation fair value assumptions, share price | $ 2.50 | |||
Share based compensation fair value assumptions risk free rate | 2.50% | |||
Share based compensation fair value assumptions cost of equity | 9.50% | |||
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 | |||
Service period | 16 months | |||
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 | |||
Service period | 25 months | |||
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 | |||
Service period | 30 months | |||
Performance stock units | Mr Kanter | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares granted during the period, fair value | $ 1,000,000 | |||
Two Thousand Sixteen To Two Thousand Seventeen Long Term Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares granted | 150,299 | |||
Two Thousand Sixteen To Two Thousand Seventeen Long Term Incentive Plan | Time-Based RSUs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares vested | 374,202 | |||
Number of shares of common stock issued | 295,788 | |||
Two Thousand Sixteen To Two Thousand Seventeen Long Term Incentive Plan | Time-Based RSUs | Mr Kanter | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares granted | 240,000 | |||
Share-based compensation arrangement by share-based payment award, vesting period | 4 years | |||
Employee Stock Plan, 2006 Plan and 2016 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares granted | 1,159,080 | |||
Share-based compensation arrangement by share-based payment award, vesting period | 3 years | |||
Shares vested | 416,187 | |||
Shares granted during the period, fair value | $ 49,391 | |||
Percentage of quarterly retainer | 50.00% | |||
Employee Stock Plan, 2006 Plan and 2016 Plan | Certain Directors | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares granted | 29,410 | |||
Shares granted during the period, fair value | $ 74,996 | |||
Employee Stock Plan, 2006 Plan and 2016 Plan | Deferred stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares granted | 19,371 | |||
Shares vested | [1] | 2,575 | ||
Employee Stock Plan, 2006 Plan and 2016 Plan | Deferred stock | Certain Directors | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares granted | [1] | 19,371 | ||
Employee Stock Plan, 2006 Plan and 2016 Plan | Performance stock units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares granted | [2] | 720,000 | ||
[1] | The 19,371 shares of deferred stock, with a fair value of $49,391, represent compensation to certain directors in lieu of cash, in accordance with their irrevocable elections. The shares of deferred stock will vest three years from the date of grant or at separation of service, based on the irrevocable election of each director. | |||
[2] | On February 19, 2019, the Company granted 720,000 shares of performance stock units (“PSUs”), with a fair value of $1.0 million, 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. All PSUs will expire on April 1, 2023 if no performance metric is achieved. The $1.0 million is being expensed over the respective derived service periods of each tranche of 16 months, 25 months and 30 months, respectively. The respective fair value and derived service periods assigned to the PSUs were determined using a Monte Carlo model based on: the Company’s historical volatility of 55.9%, a term of 4.1 years, stock price on the date of grant of $2.50 per share, a risk-free rate of 2.5% and a cost of equity of 9.5%. |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
May 04, 2019 | May 05, 2018 | Feb. 02, 2019 | |
Number of shares | |||
Options granted | 0 | 138,888 | |
Employee Stock Plan, 2006 Plan and 2016 Plan | |||
Number of shares | |||
Outstanding options at beginning of year | 957,400 | ||
Outstanding options at end of quarter | 957,400 | 957,400 | |
Options exercisable at end of quarter | 849,808 | ||
Weighted-average exercise price per option | |||
Outstanding options at beginning of year | $ 4.50 | ||
Outstanding options at end of quarter | 4.50 | $ 4.50 | |
Options exercisable at end of quarter | $ 4.76 | ||
Weighted-average remaining contractual term | |||
Outstanding options | 4 years 9 months 18 days | 5 years 1 month 6 days | |
Options exercisable at end of quarter | 4 years 2 months 12 days | ||
Aggregate Intrinsic Value | |||
Outstanding options at beginning of year | $ 16,878 | ||
Outstanding options at end of quarter | 2,850 | $ 16,878 | |
Options exercisable at end of quarter | $ 1,900 |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions for Stock Options (Details) | 3 Months Ended |
May 05, 2018 | |
Employee Service Share Based Compensation Aggregate Disclosures [Abstract] | |
Expected volatility | 48.90% |
Risk-free interest rate | 2.55% |
Expected life | 4 years 6 months |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation of Number of Shares Outstanding for Basic and Diluted Earning Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Common stock outstanding: | ||
Basic weighted average common shares outstanding | 49,602 | 48,791 |
Diluted weighted average common shares outstanding | 49,602 | 48,791 |
Earnings per Share - Reconcil_2
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 | |
May 04, 2019 | May 05, 2018 | |
Earnings Per Share [Abstract] | ||
Common stock equivalents | 525 | 377 |
Earnings per Share - Potential
Earnings per Share - Potential Common Stock Equivalents Excluded From Computation of Diluted Earning Per Share (Details) - $ / shares shares in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti dilutive shares | 525 | 377 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti dilutive shares | 942 | 1,242 |
Range of exercise prices of such options, minimum | $ 2 | $ 1.85 |
Range of exercise prices of such options, maximum | $ 7.02 | $ 7.02 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti dilutive shares | 1,105 | 316 |
Restricted and Deferred Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti dilutive shares | 39 | 65 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - shares | Feb. 19, 2019 | May 04, 2019 | May 05, 2018 |
Earnings Per Share [Line Items] | |||
Shares of restricted stock outstanding | 20,000 | ||
Anti dilutive shares | 525,000 | 377,000 | |
Performance Share Units | |||
Earnings Per Share [Line Items] | |||
Share-based compensation arrangement, expiration date | Apr. 1, 2023 | ||
Anti dilutive shares | 720,000 | ||
Stock Options | |||
Earnings Per Share [Line Items] | |||
Anti dilutive shares | 942,000 | 1,242,000 | |
Stock Options | Minimum | |||
Earnings Per Share [Line Items] | |||
Share-based compensation arrangement, expiration date | Mar. 19, 2020 | ||
Stock Options | Maximum | |||
Earnings Per Share [Line Items] | |||
Share-based compensation arrangement, expiration date | Jun. 29, 2028 | ||
Unvested time-based restricted stock | |||
Earnings Per Share [Line Items] | |||
Dilutive shares | 20,000 | 66,666 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Income Taxes [Line Items] | ||
Deferred tax assets | $ 58,700,000 | |
Deferred tax liabilities | 11,000,000 | |
Deferred tax assets, valuation allowance | $ 47,700,000 | |
Federal net operating loss carry forwards expiration period minimum | 2022 | |
Federal net operating loss carry forwards expiration period maximum | 2036 | |
Net operating loss carryforwards not subject to expiration | $ 21,700,000 | |
Liability for unrecognized tax benefits | 2,000,000 | |
Tax expenses of other comprehensive income | 51,000 | $ 26,000 |
Federal | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards subject to expiration | 141,500,000 | |
State and Local Jurisdiction | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 91,900,000 | |
State and Local Jurisdiction | Minimum | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards expiration year | 2019 | |
State and Local Jurisdiction | Maximum | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards expiration year | 2039 | |
Canada | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 3,400,000 | |
Canada | Minimum | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards expiration year | 2025 | |
Canada | Maximum | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards expiration year | 2039 |
CEO Transition Costs - Addition
CEO Transition Costs - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Related Party Transactions [Abstract] | ||
CEO transition costs | $ 702 | $ 130 |