Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Nov. 03, 2018 | Nov. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 3, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SMRT | |
Entity Registrant Name | STEIN MART INC | |
Entity Central Index Key | 884,940 | |
Current Fiscal Year End Date | --02-02 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 47,846,438 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 03, 2018 | Feb. 03, 2018 | Oct. 28, 2017 |
Current assets: | |||
Cash and cash equivalents | $ 13,884 | $ 10,400 | $ 13,230 |
Inventories | 305,010 | 270,237 | 311,255 |
Prepaid expenses and other current assets | 35,638 | 26,620 | 33,265 |
Total current assets | 354,532 | 307,257 | 357,750 |
Property and equipment, net of accumulated depreciation and amortization of $250,418, $231,997 and $236,623, respectively | 133,094 | 151,128 | 159,006 |
Other assets | 24,594 | 24,973 | 30,192 |
Total assets | 512,220 | 483,358 | 546,948 |
Current liabilities: | |||
Accounts payable | 122,019 | 119,388 | 179,666 |
Current portion of long-term debt | 13,738 | 3,333 | |
Accrued expenses and other current liabilities | 82,043 | 78,453 | 80,458 |
Total current liabilities | 204,062 | 211,579 | 263,457 |
Long-term debt, net of current portion | 190,657 | 142,387 | 147,472 |
Deferred rent | 40,558 | 40,860 | 41,592 |
Other liabilities | 35,982 | 40,214 | 47,219 |
Total liabilities | 471,259 | 435,040 | 499,740 |
COMMITMENTS AND CONTINGENCIES | |||
Shareholders' equity: | |||
Preferred stock - $0.01 par value, 1,000,000 shares authorized; no shares issued or outstanding | |||
Common stock - $0.01 par value; 100,000,000 shares authorized; 47,898,068, 47,978,275 and 47,867,630 shares issued and outstanding, respectively | 479 | 480 | 479 |
Additional paid-in capital | 59,009 | 56,002 | 54,528 |
Retained deficit | (18,295) | (7,918) | (7,521) |
Accumulated other comprehensive loss | (232) | (246) | (278) |
Total shareholders' equity | 40,961 | 48,318 | 47,208 |
Total liabilities and shareholders' equity | $ 512,220 | $ 483,358 | $ 546,948 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Nov. 03, 2018 | Feb. 03, 2018 | Oct. 28, 2017 |
Statement of Financial Position [Abstract] | |||
Accumulated depreciation and amortization | $ 250,418 | $ 231,997 | $ 236,623 |
Preferred stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued | 47,898,068 | 47,978,275 | 47,867,630 |
Common stock, shares outstanding | 47,898,068 | 47,978,275 | 47,867,630 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 279,127 | $ 285,395 | $ 916,751 | $ 933,766 |
Other revenue | 3,734 | 3,516 | 11,525 | 10,728 |
Total revenue | 282,861 | 288,911 | 928,276 | 944,494 |
Cost of merchandise sold | 209,286 | 217,126 | 671,427 | 705,273 |
Selling, general and administrative expenses | 86,948 | 95,674 | 258,584 | 274,581 |
Operating loss | (13,373) | (23,889) | (1,735) | (35,360) |
Interest expense, net | 3,078 | 1,156 | 8,406 | 3,437 |
Loss income before income taxes | (16,451) | (25,045) | (10,141) | (38,797) |
Income tax expense (benefit) | 171 | (10,429) | 291 | (14,888) |
Net loss | $ (16,622) | $ (14,616) | $ (10,432) | $ (23,909) |
Net loss per common share: | ||||
Basic | $ (0.36) | $ (0.31) | $ (0.22) | $ (0.52) |
Diluted | $ (0.36) | $ (0.31) | $ (0.22) | $ (0.52) |
Weighted-average shares outstanding: | ||||
Basic | 46,743 | 46,447 | 46,674 | 46,292 |
Diluted | 46,743 | 46,447 | 46,674 | 46,292 |
Dividends declared per common share | $ 0 | $ 0.075 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (16,622) | $ (14,616) | $ (10,432) | $ (23,909) |
Other comprehensive income, net of tax: | ||||
Amounts reclassified from accumulated other comprehensive loss | 5 | 9 | 14 | 26 |
Comprehensive loss | $ (16,617) | $ (14,607) | $ (10,418) | $ (23,883) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 03, 2018 | Oct. 28, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (10,432) | $ (23,909) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 24,513 | 24,254 |
Share-based compensation | 2,973 | 4,194 |
Store closing (benefit) charge | (180) | 97 |
Impairment of property and other assets | 491 | 640 |
Loss on disposal of property and equipment | 139 | 287 |
Deferred income taxes | 1,900 | |
Changes in assets and liabilities: | ||
Inventories | (34,773) | (20,145) |
Prepaid expenses and other current assets | (9,018) | (207) |
Other assets | (1,882) | (820) |
Accounts payable | 2,559 | 65,298 |
Accrued expenses and other current liabilities | 3,977 | 3,781 |
Other liabilities | (3,928) | (2,566) |
Net cash (used in) provided by operating activities | (25,561) | 52,804 |
Cash flows from investing activities: | ||
Net acquisition of property and equipment | (7,379) | (17,168) |
Proceeds from cancelled corporate owned life insurance policies | 2,514 | 1,504 |
Proceeds from insurance claims | 296 | |
Net cash used in investing activities | (4,569) | (15,664) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 1,033,415 | 290,169 |
Repayments of debt | (997,990) | (321,187) |
Debt issuance costs | (1,146) | |
Cash dividends paid | (147) | (3,597) |
Capital lease payments | (551) | (1) |
Proceeds from exercise of stock options and other | 90 | 328 |
Repurchase of common stock | (57) | (226) |
Net cash provided by (used in) financing activities | 33,614 | (34,514) |
Net increase in cash and cash equivalents | 3,484 | 2,626 |
Cash and cash equivalents at beginning of year | 10,400 | 10,604 |
Cash and cash equivalents at end of period | 13,884 | 13,230 |
Supplemental disclosures of cash flow information: | ||
Income taxes received | (332) | (18,103) |
Interest paid | 7,758 | 3,340 |
Accruals and accounts payable for capital expenditures | $ 324 | $ 2,479 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Nov. 03, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying Condensed Consolidated Financial Statements (Unaudited) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q S-X. 10-K As used herein, the terms “we,” “our,” “us” and “Stein Mart” refer to Stein Mart, Inc. and its wholly-owned subsidiaries. Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) No. 2014-09”). No. 2014-09 No. 2014-09, Revenue from sales of our merchandise is recognized at the time of sale net of any returns, discounts and percentage-off We offer gift and merchandise return cards to our customers. Some cards are electronic and none have expiration dates. At the time gift cards are sold, the issuance is recorded as a liability to customers, and no revenue is recognized. At the time merchandise return cards are issued for returned merchandise, the sale is reversed and a liability to customers is recorded. These card liabilities are reduced and sales revenue recognized when they are redeemed for merchandise. Card liabilities are included in accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets (Unaudited). Our gift and merchandise return cards may not ultimately be redeemed either in full or partially. We account for this “breakage” of unused amounts as revenue in proportion to the pattern of rights exercised by the customer. With the adoption of ASU No. 2014-09, Credit Card We offer co-branded We receive royalty revenue from Synchrony based on card usage in our stores and at other retailers for the Stein Mart Mastercard. We also receive revenues for new accounts and gain share based on the profitability of the overall program. Credit card revenue is recorded within other revenue in the Condensed Consolidated Statements of Operations (Unaudited). These revenues are recorded as they are earned based on the occurrence of the various program activities and represent the majority of other revenue. Once a card is activated, the card holders are eligible to participate in the credit card rewards program, which provides for an incentive to card holders in the form of reward points for which certificates are issued in $10 increments, which is equivalent to 1,000 points. Points are valued at the stand-alone selling price of the certificates issued. We defer a portion of our revenue for loyalty points earned by customers using the co-branded in-store Adjustments to Previously Reported Financial Statements The following tables set forth the adjustments made to our financial statements for the adoption of ASU No. 2014-09, Revenue from Contracts with Customers Condensed Consolidated Balance Sheets February 3, 2018 As Reported Adjustment As Adjusted Prepaid expenses and other current assets $ 24,194 $ 2,426 $ 26,620 Accrued expenses and other current liabilities 76,058 2,395 78,453 Retained deficit (7,949 ) 31 (7,918 ) October 28, 2017 As Reported Adjustment As Adjusted Prepaid expenses and other current assets $ 31,371 $ 1,894 $ 33,265 Accrued expenses and other current liabilities 78,595 1,863 80,458 Retained deficit (7,552 ) 31 (7,521 ) Condensed Consolidated Statements of Operations 13 Weeks Ended October 28, 2017 As Reported Adjustment As Adjusted Other revenue $ - $ 3,516 $ 3,516 Selling, general and administrative expenses 92,158 3,516 95,674 39 Weeks Ended October 28, 2017 As Reported Adjustment As Adjusted Other revenue $ - $ 10,728 $ 10,728 Selling, general and administrative expenses 263,853 10,728 274,581 Condensed Consolidated Statements of Cash Flows 39 Weeks Ended October 28, 2017 As Reported Adjustment As Adjusted Prepaid expenses and other current assets $ (1,122 ) $ 915 $ (207 ) Accrued expenses and other current liabilities 4,696 (915 ) 3,781 Revenue The following table sets forth our revenue by type of contract (in thousands): 13 Weeks Ended 13 Weeks Ended 39 Weeks Ended 39 Weeks Ended Store sales (1) $ 261,138 $ 271,836 $ 860,143 $ 891,792 Ecommerce sales (1) 11,897 8,172 37,728 24,663 Licensed department commissions (2) 6,092 5,387 18,880 17,311 Net sales $ 279,127 $ 285,395 $ 916,751 $ 933,766 Credit card revenue (3) 1,754 2,230 6,243 7,596 Breakage revenue (4) 1,930 1,242 5,146 3,018 Other 50 44 136 114 Other revenue 3,734 3,516 11,525 10,728 Total revenue $ 282,861 $ 288,911 $ 928,276 $ 944,494 (1) Store and Ecommerce sales are net of any returns, discounts and percentage-off (2) Licensed department commissions are licensed department commissions received net of any returns. (3) Credit card revenue earned from Synchrony programs. (4) Breakage revenue earned on unused gift and merchandise return cards and unused certificates and loyalty reward points. The following table sets forth the gross up of the sales return reserve (in thousands): November 3, 2018 February 3, 2018 October 28, 2017 Reserve for sales returns $ (4,888 ) $ (4,094 ) $ (3,189 ) Cost of inventory returns 1,919 2,426 1,894 The following table sets forth the contract liabilities and their relationship to revenue (in thousands): November 3, 2018 February 3, 2018 October 28, 2017 Deferred revenue contracts $ (11,417 ) $ (12,512 ) $ (12,909 ) Gift card liability (8,774 ) (12,180 ) (8,799 ) Credit card reward liability (4,972 ) (4,689 ) (3,224 ) Liability for deferred revenue $ (25,163 ) $ (29,381 ) $ (24,932 ) Contract liabilities include consideration received for gift card and loyalty related performance obligations which have not been satisfied as of the dates presented above. The following table sets forth a rollforward of the amounts included in contract liabilities for the periods presented (in thousands): 39 Weeks Ended 39 Weeks Ended Beginning balance $ 29,381 $ 29,412 Current period gift cards sold and loyalty reward points earned 23,287 20,212 Net sales from redemptions (1) (21,164 ) (20,483 ) Breakage and amortization (2) (6,341 ) (4,209 ) Ending balance $ 25,163 $ 24,932 (1) $1.0 million and $0.9 million in net sales from redemptions were included in the beginning balance of contract liabilities for the 13 weeks ended November 3, 2018 and October 28, 2017, respectively. $7.4 and $7.3 million in net sales from redemptions were included in the beginning balance of contract liabilities for the 39 weeks ended November 3, 2018 and October 28, 2017, respectively. (2) $0.4 million in breakage and amortization were included in the beginning balance of contract liabilities for the 13 weeks ended November 3, 2018 and October 28, 2017, respectively. $3.1 million and $2.1 million in breakage and amortization were included in the beginning balance of contract liabilities for the 39 weeks ended November 3, 2018 and October 28, 2017, respectively. Accrued Expenses and Other Current Liabilities The following table sets forth the major components of accrued expenses and other current liabilities (in thousands): November 3, 2018 February 3, 2018 October 28, 2017 Property taxes $ 18,424 $ 17,451 $ 17,364 Unredeemed gift and merchandise return cards 8,734 12,150 8,777 Compensation and employee benefits 8,649 7,732 7,944 Accrued vacation 7,632 7,632 7,715 Other 38,604 33,488 38,658 Accrued expenses and other current liabilities $ 82,043 $ 78,453 $ 80,458 Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) No. 2018-11 In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other— Internal-Use 350-40). No. 2015-05, Intangibles—Goodwill and Other—Internal-Use 350-40 internal-use |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Nov. 03, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | 2. Shareholders’ Equity Dividends During the 39 weeks ended November 3, 2018, there were no cash dividends declared. We paid $0.1 million in accrued dividends on restricted shares that vested during the period. During the 39 weeks ended October 28, 2017, we paid one quarterly cash dividend of $0.075 per common share on April 14, 2017. Stock Repurchase Plan During the 13 weeks ended November 3, 2018, we repurchased 3,832 shares of our common stock at a total cost of less than $0.1 million. During the 13 weeks ended October 28, 2017, we repurchased 5,636 shares of our common stock at a total cost of less than $0.1 million. During the 39 weeks ended November 3, 2018, we repurchased 52,241 shares of our common stock at a total cost of less than $0.1 million. During the 39 weeks ended October 28, 2017, we repurchased 69,122 shares of our common stock at a total cost of approximately $0.2 million. Stock repurchases were for tax withholding amounts due on employee stock awards and during 2018 and 2017, included no shares purchased on the open market under our previously authorized stock repurchase plan. As of November 3, 2018, there are 366,889 shares that can be repurchased pursuant to the Board of Directors’ current authorization. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Nov. 03, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 3. Earnings per Share Our restricted stock awards granted in 2013 contain non-forfeitable two-class two-class The following table sets forth the calculation of basic and diluted loss per common share (in thousands, except per share data): 13 Weeks Ended November 3, 2018 13 Weeks Ended October 28, 2017 39 Weeks Ended November 3, 2018 39 Weeks Ended October 28, 2017 Basic: Net loss $ (16,622) $ (14,616) $ (10,432) $ (23,909) Income allocated to participating securities - - - 2 Net loss available to common shareholders $ (16,622) $ (14,616) $ (10,432) $ (23,911) Basic weighted-average shares outstanding 46,743 46,447 46,674 46,292 Basic loss per common share $ (0.36) $ (0.31) $ (0.22) $ (0.52) Diluted: Net loss $ (16,622) $ (14,616) $ (10,432) $ (23,909) Income allocated to diluted participating securities - - - 2 Net loss available to common shareholders $ (16,622) $ (14,616) $ (10,432) $ (23,911) Basic weighted-average shares outstanding 46,743 46,447 46,674 46,292 Incremental shares from share-based compensation plans - - - - Diluted weighted-average shares outstanding 46,743 46,447 46,674 46,292 Diluted loss per common share $ (0.36) $ (0.31) $ (0.22) $ (0.52) Diluted weighted-average shares outstanding exclude approximately 2.3 million and 2.9 million shares during the 13 weeks ended November 3, 2018 and October 28, 2017, respectively, which are anti-dilutive for the periods presented. Diluted weighted-average shares outstanding exclude approximately 2.7 million and 2.9 million shares during the 39 weeks ended November 3, 2018 and October 28, 2017, respectively, which are anti-dilutive for the periods presented. These shares are comprised of a mix of stock options, performance awards and restricted stock. Stock options excluded were those that had exercise prices greater than the average market price of the common shares such that inclusion would have been anti-dilutive. Restricted stock and performance shares excluded were shares that were anti-dilutive as calculated using the treasury stock method. |
Debt
Debt | 9 Months Ended |
Nov. 03, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 4. Debt The following table sets forth our debt (in thousands): November 3, 2018 February 3, 2018 October 28, 2017 Revolving credit facility $ 156,551 $ 142,387 $ 147,483 Term loan 35,000 - - Promissory note - 13,738 - Equipment term loan - - 3,333 Total debt 191,551 156,125 150,816 Current portion - (13,738) (3,333) Debt issuance costs (894) - (11) Long-term debt $ 190,657 $ 142,387 $ 147,472 Revolving Credit Facility and Equipment Term Loan On February 3, 2015, we entered into a $250.0 million senior secured revolving credit facility pursuant to a second amended and restated credit agreement (the “Credit Agreement”) with Wells Fargo Bank (“Wells Fargo”) that will mature in February 2020 (the “Revolving Credit Facility”) and a secured $25.0 million master loan agreement with Wells Fargo Equipment Finance, Inc. (the “Equipment Term Loan”) with an original maturity in February 2018. Borrowings under the Revolving Credit Facility were initially used for a special dividend but are subsequently being used for working capital, capital expenditures and other general corporate purposes. During 2015, debt issuance costs of $0.4 million were associated with the Revolving Credit Facility and the Equipment Term Loan. Debt issuance costs associated with the Revolving Credit Facility are being amortized over its respective term. We repaid the Equipment Term Loan in full on January 22, 2018, at which time the associated debt issuance costs were fully amortized. On February 19, 2018, we entered into Amendment No. 1 (the “Credit Agreement Amendment”) to the Credit Agreement with Wells Fargo. The Credit Agreement Amendment provides for, among other things, an Accommodation Period (as defined in the Credit Agreement Amendment) during which we were not required to meet the Fixed Charge Coverage Ratio (as defined in the Credit Agreement). This change permitted us to borrow the full amount of the then applicable borrowing base until we delivered our financial statements for the Measurement Period (as defined in the Credit Agreement) ended February 28, 2018. Pursuant to the Credit Agreement Amendment, a Cash Dominion Event (as defined in the Credit Agreement Amendment) occurred as of the effective date of the Credit Agreement Amendment and at all times thereafter. As a result of the Cash Dominion Event, all of our cash receipts were swept daily to repay outstanding borrowings under the Credit Agreement and the amount outstanding under the Credit Agreement was classified as a short-term obligation. See below for discussion of the Third Credit Agreement and the removal of the Cash Dominion Event effective September 18, 2018. On March 14, 2018, we entered into Amendment No. 2 (the “Second Credit Agreement Amendment”) to the Credit Agreement with Wells Fargo. The Second Credit Agreement Amendment provided for, among other things, the following: (1) the $25.0 million Tranche A-1 On September 18, 2018, we entered into Amendment No. 3 the (the “Third Credit Agreement Amendment”) to the Credit Agreement with Wells Fargo. The Third Credit Agreement Amendment provides for, among other things, the following: (1) the increase of Aggregate Tranche A Revolving Loan Commitments (as defined in the Second Credit Agreement Amendment) from $225.0 million to $240.0 million; (2) an extension of the Maturity Date of the Revolving Credit Facility to the earlier of (a) the maturity date of the Term Loan Agreement (as defined below) or (b) September 18, 2023; and (3) the elimination of Cash Dominion Event status and a change in Cash Dominion to be triggered only in the event of (a) the occurrence and continuance of any Event of Default or (b) Excess Availability of less than (A) 10.0% of the loan cap at any time or (B) 12.5% of the loan cap for 3 consecutive business days. During 2018, debt issuance costs of less than $0.1 million were associated with the Third Credit Agreement Amendment and are being amortized over its respective term. Debt issuance costs of $0.1 million remaining under the initial Credit Agreement will also be amortized over the new term of the Third Credit Agreement. The total amount available for borrowings under the Credit Agreement is the lesser of $240.0 million or 100 percent of eligible credit card receivables and the net recovery percentage of inventories less reserves. On November 3, 2018, in addition to outstanding borrowings under the Credit Agreement, we had $8.5 million of outstanding letters of credit and our unused availability under the Credit Agreement was $74.9 million. The amount outstanding under the Credit Agreement has been classified as a long-term obligation. The Credit Agreement contains customary representations and warranties, affirmative and negative covenants (including the requirement of a 1.0 to 1.0 consolidated Fixed Charge Coverage Ratio upon the occurrence and during the continuance of any Covenant Compliance Event, as defined in the Credit Agreement), and events of default for facilities of this type and is cross-collateralized and cross-defaulted. Collateral for the Revolving Credit Facility and the Equipment Term Loan consists of substantially all of our personal property. Wells Fargo has a first lien on all collateral other than equipment. Wells Fargo Equipment Finance had a first lien on equipment through January 22, 2018, when we repaid the Equipment Term Loan in full. Borrowings under the Credit Agreement are either base rate loans or London Interbank Offered Rate (“LIBOR”) loans. LIBOR loans bear interest equal to the adjusted LIBOR plus the applicable margin (125 to 175 basis points) depending on the quarterly average excess availability. Base Rate Loans bear interest equal to the highest of (a) the Federal Funds Rate plus 0.50 percent, (b) the adjusted LIBOR plus 1.00 percent, or (c) the Wells Fargo “prime rate,” plus the Applicable Margin (25 to 75 basis points). The weighted average interest rate for the amount outstanding under the Credit Agreement was 4.10 percent as of November 3, 2018. Promissory Note On February 2, 2018, we executed a promissory note under which we borrowed approximately $13.7 million (the “Promissory Note”) from SunTrust Bank (the “Trustee”) in its capacity as the trustee under a trust agreement (the “Trust Agreement”) dated September 1, 1999. The trust established by the Trust Agreement (the “Trust”) holds certain life insurance policies related to our executive deferred compensation plans. The Trustee obtained loans from the insurance policies held in the Trust in an amount not less than the amount of the Promissory Note. The Promissory Note is a short-term obligation and the proceeds were used to pay down borrowings under the existing Credit Agreement which provided additional availability under that agreement. The Promissory Note had a fixed interest rate of 3.58 percent per annum and an original maturity date of April 1, 2018. On March 7, 2018, we executed an amendment to the Promissory Note under which the Trustee extended the maturity date of the note from April 1, 2018, to July 1, 2018 (the “Maturity Date”). The amendment did not alter the short-term nature of the Promissory Note. The Promissory Note could be prepaid in whole or in part at any time. All unpaid principal and accrued interest on the Promissory Note would have become due and payable on the Maturity Date. The Trustee could offset payments due under the Promissory Note against amounts we would otherwise be entitled to withdraw from the Trust under the terms of the Trust Agreement. On June 29, 2018, we repaid the outstanding balance of the Promissory Note. On July 31, 2018, we executed a second promissory note from SunTrust Bank for $13.0 million which carries a fixed interest rate of 3.58 percent per annum and an original maturity date of September 10, 2018. This note is under the same terms as the Promissory Note executed on February 2, 2018. On September 10, 2018, we repaid the outstanding balance of the Promissory Note. We believe we are able to borrow, on a short-term basis and subject to the formal agreement of the lender, amounts up to the cash surrender value of the life insurance policies related to our executive deferred compensation plans to provide additional liquidity if needed. At November 3, 2018, the cash surrender value of our life insurance policies was $12.8 million. Term Loan On March 14, 2018, we entered into a Term Loan Credit Agreement with Gordon Brothers Finance Company, as administrative agent (in such capacity, the “Term Loan Agent”), and Gordon Brothers Finance Company, LLC, as lender (the “Term Loan Agreement”). The Term Loan Agreement provided for a term loan in the amount of $50.0 million (the “Term Loan”) and paid in full the existing $25.0 million Tranche A-1 A-1 A-1 The Term Loan originally matured on the earlier of (1) the termination date specified in our Credit Agreement, as such date may be extended with the consent of the Term Loan Agent or in accordance with the Intercreditor Agreement (defined below), and (2) March 14, 2020. On September 18, 2018, we entered into Amendment No. 2 (the “Second Amendment”) to the Term Loan with Gordon Brothers Finance Company. The Second Amendment provided for, among other things, the following: (1) the reduction of the maximum amount of the Term Loan to $35.0 million; (2) an extension of the maturity date of the Term Loan Agreement to the earlier of (a) the termination date specified in the Revolving Credit Facility (as defined in the Credit Agreement), and (b) September 18, 2023; (3) the reduction of the non-default The Term Loan Agreement contains customary representations and warranties, affirmative and negative covenants including the retention of the existing minimum 1.0 to 1.0 consolidated fixed charge coverage ratio under the Credit Agreement, which limits borrowing availability if not met during periods where Revolving Excess Availability (as defined in the Term Loan Agreement) is less than the greater of $20.0 million or 10.0 percent of Combined Loan Cap (as defined in the Term Loan Agreement) for four consecutive business days, and events of default for a facility of this type. The Term Loan is secured by a second lien security interest (subordinate only to the liens securing the Credit Agreement) on all assets securing the Credit Agreement (which consist of substantially all of our personal property), except furniture, fixtures and equipment and intellectual property, upon which the Term Loan lenders will have a first lien security interest. If at any time prior to the first anniversary date of the Term Loan, the Revolving Excess Availability is less than $20.0 million, if requested by the Term Loan Agent, the Term Loan will also be secured by a first lien on leasehold interests in real property with an aggregate value of not less than $10.0 million, and the Credit Agreement will be secured by a second lien on such leasehold interests. The Term Loan is subject to certain mandatory prepayments if an Event of Default (as defined in the Term Loan Agreement) exists. If no such Event of Default exists, proceeds of the Term Loan priority collateral are to be applied to amounts outstanding under the Credit Agreement. The Term Loan Agent and Wells Fargo have entered into an Intercreditor Agreement dated as of March 14, 2018 (the “Intercreditor Agreement”), acknowledged by us under the Term Loan and the Credit Agreement. The Intercreditor Agreement was also amended on September 18, 2018 to incorporate the amendment to the Revolving Credit Facility and the Term Loan Agreement. The weighted average interest rate for the amount outstanding under the Term Loan was 10.65 percent as of November 3, 2018. The following table sets forth the aggregate maturities of our long-term debt at November 3, 2018, for the following fiscal years (in thousands): 2019 $ - 2020 - 2021 - 2022 - 2023 191,551 Thereafter - Total $ 191,551 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Nov. 03, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 5. Commitments and Contingencies We are involved in various routine legal proceedings incidental to the conduct of our business. During both the 13 and 39 weeks ended November 3, 2018 and October 28, 2017, we did not accrue for any actual or anticipated loss contingencies. While some of these matters could be material to our results of operations or cash flows for any particular period if an unfavorable outcome results, we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our overall financial condition. |
Income Taxes
Income Taxes | 9 Months Ended |
Nov. 03, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes Our income tax expense for the 13 and 39 weeks ended November 3, 2018, reflects our net operating loss carryforward position along with the valuation allowance established against deferred tax assets during the fourth quarter of 2017. The 2017 Tax Act changed the carryback rules for 2018 and future years. As a result, we are unable to carry back our 2018 losses. The 39 weeks of 2018 expense represents certain state income tax expense. The effective tax rate will be close to zero percent for all of 2018. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Nov. 03, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements (Unaudited) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q S-X. 10-K As used herein, the terms “we,” “our,” “us” and “Stein Mart” refer to Stein Mart, Inc. and its wholly-owned subsidiaries. |
Revenue Recognition | Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) No. 2014-09”). No. 2014-09 No. 2014-09, Revenue from sales of our merchandise is recognized at the time of sale net of any returns, discounts and percentage-off We offer gift and merchandise return cards to our customers. Some cards are electronic and none have expiration dates. At the time gift cards are sold, the issuance is recorded as a liability to customers, and no revenue is recognized. At the time merchandise return cards are issued for returned merchandise, the sale is reversed and a liability to customers is recorded. These card liabilities are reduced and sales revenue recognized when they are redeemed for merchandise. Card liabilities are included in accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets (Unaudited). Our gift and merchandise return cards may not ultimately be redeemed either in full or partially. We account for this “breakage” of unused amounts as revenue in proportion to the pattern of rights exercised by the customer. With the adoption of ASU No. 2014-09, |
Credit Card | Credit Card We offer co-branded We receive royalty revenue from Synchrony based on card usage in our stores and at other retailers for the Stein Mart Mastercard. We also receive revenues for new accounts and gain share based on the profitability of the overall program. Credit card revenue is recorded within other revenue in the Condensed Consolidated Statements of Operations (Unaudited). These revenues are recorded as they are earned based on the occurrence of the various program activities and represent the majority of other revenue. Once a card is activated, the card holders are eligible to participate in the credit card rewards program, which provides for an incentive to card holders in the form of reward points for which certificates are issued in $10 increments, which is equivalent to 1,000 points. Points are valued at the stand-alone selling price of the certificates issued. We defer a portion of our revenue for loyalty points earned by customers using the co-branded in-store |
Adjustments to Previously Reported Financial Statements | Adjustments to Previously Reported Financial Statements The following tables set forth the adjustments made to our financial statements for the adoption of ASU No. 2014-09, Revenue from Contracts with Customers Condensed Consolidated Balance Sheets February 3, 2018 As Reported Adjustment As Adjusted Prepaid expenses and other current assets $ 24,194 $ 2,426 $ 26,620 Accrued expenses and other current liabilities 76,058 2,395 78,453 Retained deficit (7,949 ) 31 (7,918 ) October 28, 2017 As Reported Adjustment As Adjusted Prepaid expenses and other current assets $ 31,371 $ 1,894 $ 33,265 Accrued expenses and other current liabilities 78,595 1,863 80,458 Retained deficit (7,552 ) 31 (7,521 ) Condensed Consolidated Statements of Operations 13 Weeks Ended October 28, 2017 As Reported Adjustment As Adjusted Other revenue $ - $ 3,516 $ 3,516 Selling, general and administrative expenses 92,158 3,516 95,674 39 Weeks Ended October 28, 2017 As Reported Adjustment As Adjusted Other revenue $ - $ 10,728 $ 10,728 Selling, general and administrative expenses 263,853 10,728 274,581 Condensed Consolidated Statements of Cash Flows 39 Weeks Ended October 28, 2017 As Reported Adjustment As Adjusted Prepaid expenses and other current assets $ (1,122 ) $ 915 $ (207 ) Accrued expenses and other current liabilities 4,696 (915 ) 3,781 Revenue The following table sets forth our revenue by type of contract (in thousands): 13 Weeks Ended 13 Weeks Ended 39 Weeks Ended 39 Weeks Ended Store sales (1) $ 261,138 $ 271,836 $ 860,143 $ 891,792 Ecommerce sales (1) 11,897 8,172 37,728 24,663 Licensed department commissions (2) 6,092 5,387 18,880 17,311 Net sales $ 279,127 $ 285,395 $ 916,751 $ 933,766 Credit card revenue (3) 1,754 2,230 6,243 7,596 Breakage revenue (4) 1,930 1,242 5,146 3,018 Other 50 44 136 114 Other revenue 3,734 3,516 11,525 10,728 Total revenue $ 282,861 $ 288,911 $ 928,276 $ 944,494 (1) Store and Ecommerce sales are net of any returns, discounts and percentage-off (2) Licensed department commissions are licensed department commissions received net of any returns. (3) Credit card revenue earned from Synchrony programs. (4) Breakage revenue earned on unused gift and merchandise return cards and unused certificates and loyalty reward points. The following table sets forth the gross up of the sales return reserve (in thousands): November 3, 2018 February 3, 2018 October 28, 2017 Reserve for sales returns $ (4,888 ) $ (4,094 ) $ (3,189 ) Cost of inventory returns 1,919 2,426 1,894 The following table sets forth the contract liabilities and their relationship to revenue (in thousands): November 3, 2018 February 3, 2018 October 28, 2017 Deferred revenue contracts $ (11,417 ) $ (12,512 ) $ (12,909 ) Gift card liability (8,774 ) (12,180 ) (8,799 ) Credit card reward liability (4,972 ) (4,689 ) (3,224 ) Liability for deferred revenue $ (25,163 ) $ (29,381 ) $ (24,932 ) Contract liabilities include consideration received for gift card and loyalty related performance obligations which have not been satisfied as of the dates presented above. The following table sets forth a rollforward of the amounts included in contract liabilities for the periods presented (in thousands): 39 Weeks Ended 39 Weeks Ended Beginning balance $ 29,381 $ 29,412 Current period gift cards sold and loyalty reward points earned 23,287 20,212 Net sales from redemptions (1) (21,164 ) (20,483 ) Breakage and amortization (2) (6,341 ) (4,209 ) Ending balance $ 25,163 $ 24,932 (1) $1.0 million and $0.9 million in net sales from redemptions were included in the beginning balance of contract liabilities for the 13 weeks ended November 3, 2018 and October 28, 2017, respectively. $7.4 and $7.3 million in net sales from redemptions were included in the beginning balance of contract liabilities for the 39 weeks ended November 3, 2018 and October 28, 2017, respectively. (2) $0.4 million in breakage and amortization were included in the beginning balance of contract liabilities for the 13 weeks ended November 3, 2018 and October 28, 2017, respectively. $3.1 million and $2.1 million in breakage and amortization were included in the beginning balance of contract liabilities for the 39 weeks ended November 3, 2018 and October 28, 2017, respectively. Accrued Expenses and Other Current Liabilities The following table sets forth the major components of accrued expenses and other current liabilities (in thousands): November 3, 2018 February 3, 2018 October 28, 2017 Property taxes $ 18,424 $ 17,451 $ 17,364 Unredeemed gift and merchandise return cards 8,734 12,150 8,777 Compensation and employee benefits 8,649 7,732 7,944 Accrued vacation 7,632 7,632 7,715 Other 38,604 33,488 38,658 Accrued expenses and other current liabilities $ 82,043 $ 78,453 $ 80,458 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) No. 2018-11 In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other— Internal-Use 350-40). No. 2015-05, Intangibles—Goodwill and Other—Internal-Use 350-40 internal-use |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
Summary of Revenue by Type of Contract | The following table sets forth our revenue by type of contract (in thousands): 13 Weeks Ended 13 Weeks Ended 39 Weeks Ended 39 Weeks Ended Store sales (1) $ 261,138 $ 271,836 $ 860,143 $ 891,792 Ecommerce sales (1) 11,897 8,172 37,728 24,663 Licensed department commissions (2) 6,092 5,387 18,880 17,311 Net sales $ 279,127 $ 285,395 $ 916,751 $ 933,766 Credit card revenue (3) 1,754 2,230 6,243 7,596 Breakage revenue (4) 1,930 1,242 5,146 3,018 Other 50 44 136 114 Other revenue 3,734 3,516 11,525 10,728 Total revenue $ 282,861 $ 288,911 $ 928,276 $ 944,494 (1) Store and Ecommerce sales are net of any returns, discounts and percentage-off (2) Licensed department commissions are licensed department commissions received net of any returns. (3) Credit card revenue earned from Synchrony programs. (4) Breakage revenue earned on unused gift and merchandise return cards and unused certificates and loyalty reward points. |
Summary of Gross Up of Sales Return Reserve | The following table sets forth the gross up of the sales return reserve (in thousands): November 3, 2018 February 3, 2018 October 28, 2017 Reserve for sales returns $ (4,888 ) $ (4,094 ) $ (3,189 ) Cost of inventory returns 1,919 2,426 1,894 |
Summary of Contract Liabilities and Their Relationship to Revenue | The following table sets forth the contract liabilities and their relationship to revenue (in thousands): November 3, 2018 February 3, 2018 October 28, 2017 Deferred revenue contracts $ (11,417 ) $ (12,512 ) $ (12,909 ) Gift card liability (8,774 ) (12,180 ) (8,799 ) Credit card reward liability (4,972 ) (4,689 ) (3,224 ) Liability for deferred revenue $ (25,163 ) $ (29,381 ) $ (24,932 ) |
Summary of Amounts Included in Contract Liabilities | The following table sets forth a rollforward of the amounts included in contract liabilities for the periods presented (in thousands): 39 Weeks Ended 39 Weeks Ended Beginning balance $ 29,381 $ 29,412 Current period gift cards sold and loyalty reward points earned 23,287 20,212 Net sales from redemptions (1) (21,164 ) (20,483 ) Breakage and amortization (2) (6,341 ) (4,209 ) Ending balance $ 25,163 $ 24,932 (1) $1.0 million and $0.9 million in net sales from redemptions were included in the beginning balance of contract liabilities for the 13 weeks ended November 3, 2018 and October 28, 2017, respectively. $7.4 and $7.3 million in net sales from redemptions were included in the beginning balance of contract liabilities for the 39 weeks ended November 3, 2018 and October 28, 2017, respectively. (2) $0.4 million in breakage and amortization were included in the beginning balance of contract liabilities for the 13 weeks ended November 3, 2018 and October 28, 2017, respectively. $3.1 million and $2.1 million in breakage and amortization were included in the beginning balance of contract liabilities for the 39 weeks ended November 3, 2018 and October 28, 2017, respectively. |
Major Components of Accrued Expenses and Other Current Liabilities | The following table sets forth the major components of accrued expenses and other current liabilities (in thousands): November 3, 2018 February 3, 2018 October 28, 2017 Property taxes $ 18,424 $ 17,451 $ 17,364 Unredeemed gift and merchandise return cards 8,734 12,150 8,777 Compensation and employee benefits 8,649 7,732 7,944 Accrued vacation 7,632 7,632 7,715 Other 38,604 33,488 38,658 Accrued expenses and other current liabilities $ 82,043 $ 78,453 $ 80,458 |
Accounting Standards Update 2014-09 [Member] | |
Summary of Adjustments Made to Financial Statements | The following tables set forth the adjustments made to our financial statements for the adoption of ASU No. 2014-09, Revenue from Contracts with Customers Condensed Consolidated Balance Sheets February 3, 2018 As Reported Adjustment As Adjusted Prepaid expenses and other current assets $ 24,194 $ 2,426 $ 26,620 Accrued expenses and other current liabilities 76,058 2,395 78,453 Retained deficit (7,949 ) 31 (7,918 ) October 28, 2017 As Reported Adjustment As Adjusted Prepaid expenses and other current assets $ 31,371 $ 1,894 $ 33,265 Accrued expenses and other current liabilities 78,595 1,863 80,458 Retained deficit (7,552 ) 31 (7,521 ) Condensed Consolidated Statements of Operations 13 Weeks Ended October 28, 2017 As Reported Adjustment As Adjusted Other revenue $ - $ 3,516 $ 3,516 Selling, general and administrative expenses 92,158 3,516 95,674 39 Weeks Ended October 28, 2017 As Reported Adjustment As Adjusted Other revenue $ - $ 10,728 $ 10,728 Selling, general and administrative expenses 263,853 10,728 274,581 Condensed Consolidated Statements of Cash Flows 39 Weeks Ended October 28, 2017 As Reported Adjustment As Adjusted Prepaid expenses and other current assets $ (1,122 ) $ 915 $ (207 ) Accrued expenses and other current liabilities 4,696 (915 ) 3,781 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Loss Per Common Share | The following table sets forth the calculation of basic and diluted loss per common share (in thousands, except per share data): 13 Weeks Ended November 3, 2018 13 Weeks Ended October 28, 2017 39 Weeks Ended November 3, 2018 39 Weeks Ended October 28, 2017 Basic: Net loss $ (16,622) $ (14,616) $ (10,432) $ (23,909) Income allocated to participating securities - - - 2 Net loss available to common shareholders $ (16,622) $ (14,616) $ (10,432) $ (23,911) Basic weighted-average shares outstanding 46,743 46,447 46,674 46,292 Basic loss per common share $ (0.36) $ (0.31) $ (0.22) $ (0.52) Diluted: Net loss $ (16,622) $ (14,616) $ (10,432) $ (23,909) Income allocated to diluted participating securities - - - 2 Net loss available to common shareholders $ (16,622) $ (14,616) $ (10,432) $ (23,911) Basic weighted-average shares outstanding 46,743 46,447 46,674 46,292 Incremental shares from share-based compensation plans - - - - Diluted weighted-average shares outstanding 46,743 46,447 46,674 46,292 Diluted loss per common share $ (0.36) $ (0.31) $ (0.22) $ (0.52) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Debt | The following table sets forth our debt (in thousands): November 3, 2018 February 3, 2018 October 28, 2017 Revolving credit facility $ 156,551 $ 142,387 $ 147,483 Term loan 35,000 - - Promissory note - 13,738 - Equipment term loan - - 3,333 Total debt 191,551 156,125 150,816 Current portion - (13,738) (3,333) Debt issuance costs (894) - (11) Long-term debt $ 190,657 $ 142,387 $ 147,472 |
Aggregate Maturities of Debt | The following table sets forth the aggregate maturities of our long-term debt at November 3, 2018, for the following fiscal years (in thousands): 2019 $ - 2020 - 2021 - 2022 - 2023 191,551 Thereafter - Total $ 191,551 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | Jan. 28, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Breakage unused gift and merchandise revenue recognized | $ 200,000 | $ 200,000 | $ 1,100,000 | $ 800,000 | |
Accounting Standards Update 2014-09 [Member] | Maximum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
New accounting pronouncement, increase in retained earnings | $ 100,000 |
Basis of Presentation - Summary
Basis of Presentation - Summary of Adjustments Made to Financial Statements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | Feb. 03, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Prepaid expenses and other current assets | $ 35,638 | $ 33,265 | $ 35,638 | $ 33,265 | $ 26,620 |
Accrued expenses and other current liabilities | 82,043 | 80,458 | 82,043 | 80,458 | 78,453 |
Retained deficit | (18,295) | (7,521) | (18,295) | (7,521) | (7,918) |
Other revenue | 3,734 | 3,516 | 11,525 | 10,728 | |
Selling, general and administrative expenses | 86,948 | 95,674 | 258,584 | 274,581 | |
Prepaid expenses and other current assets | 9,018 | 207 | |||
Accrued expenses and other current liabilities | 3,977 | 3,781 | |||
Accounting Standards Update 2014-09 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Prepaid expenses and other current assets | 33,265 | 33,265 | 26,620 | ||
Accrued expenses and other current liabilities | 80,458 | 80,458 | 78,453 | ||
Retained deficit | (7,521) | (7,521) | (7,918) | ||
Other revenue | $ 3,734 | 3,516 | $ 11,525 | 10,728 | |
Selling, general and administrative expenses | 95,674 | 274,581 | |||
Prepaid expenses and other current assets | (207) | ||||
Accrued expenses and other current liabilities | 3,781 | ||||
Accounting Standards Update 2014-09 [Member] | Scenario, Adjustment [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Prepaid expenses and other current assets | 1,894 | 1,894 | 2,426 | ||
Accrued expenses and other current liabilities | 1,863 | 1,863 | 2,395 | ||
Retained deficit | 31 | 31 | 31 | ||
Other revenue | 3,516 | 10,728 | |||
Selling, general and administrative expenses | 3,516 | 10,728 | |||
Prepaid expenses and other current assets | 915 | ||||
Accrued expenses and other current liabilities | (915) | ||||
Scenario, Previously Reported [Member] | Accounting Standards Update 2014-09 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Prepaid expenses and other current assets | 31,371 | 31,371 | 24,194 | ||
Accrued expenses and other current liabilities | 78,595 | 78,595 | 76,058 | ||
Retained deficit | (7,552) | (7,552) | $ (7,949) | ||
Selling, general and administrative expenses | $ 92,158 | 263,853 | |||
Prepaid expenses and other current assets | (1,122) | ||||
Accrued expenses and other current liabilities | $ 4,696 |
Basis of Presentation - Summa_2
Basis of Presentation - Summary of Revenue by Type of Contract (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 279,127 | $ 285,395 | $ 916,751 | $ 933,766 |
Other revenue | 3,734 | 3,516 | 11,525 | 10,728 |
Total revenue | 282,861 | 288,911 | 928,276 | 944,494 |
Accounting Standards Update 2014-09 [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 279,127 | 285,395 | 916,751 | 933,766 |
Other revenue | 3,734 | 3,516 | 11,525 | 10,728 |
Total revenue | 282,861 | 288,911 | 928,276 | 944,494 |
Accounting Standards Update 2014-09 [Member] | Store sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 261,138 | 271,836 | 860,143 | 891,792 |
Accounting Standards Update 2014-09 [Member] | Ecommerce sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 11,897 | 8,172 | 37,728 | 24,663 |
Accounting Standards Update 2014-09 [Member] | Licensee department commissions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 6,092 | 5,387 | 18,880 | 17,311 |
Accounting Standards Update 2014-09 [Member] | Credit Card [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other revenue | 1,754 | 2,230 | 6,243 | 7,596 |
Accounting Standards Update 2014-09 [Member] | Breakage revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other revenue | 1,930 | 1,242 | 5,146 | 3,018 |
Accounting Standards Update 2014-09 [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other revenue | $ 50 | $ 44 | $ 136 | $ 114 |
Basis of Presentation - Summa_3
Basis of Presentation - Summary of Gross Up of Sales Return Reserve (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Nov. 03, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | |
Revenue from Contract with Customer [Abstract] | |||
Reserve for sales returns | $ (4,888) | $ (4,094) | $ (3,189) |
Cost of inventory returns | $ 1,919 | $ 2,426 | $ 1,894 |
Basis of Presentation - Summa_4
Basis of Presentation - Summary of Contract Liabilities and Their Relationship to Revenue (Detail) - USD ($) $ in Thousands | Nov. 03, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jan. 28, 2017 |
Revenue from Contract with Customer [Abstract] | ||||
Deferred revenue contracts | $ (11,417) | $ (12,512) | $ (12,909) | |
Gift card liability | (8,774) | (12,180) | (8,799) | |
Credit card reward liability | (4,972) | (4,689) | (3,224) | |
Liability for deferred revenue | $ (25,163) | $ (29,381) | $ (24,932) | $ (29,412) |
Basis of Presentation - Summa_5
Basis of Presentation - Summary of Amounts Included in Contract Liabilities (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | ||
Revenue from Contract with Customer [Abstract] | |||
Beginning balance | $ 29,381 | $ 29,412 | |
Current period gift cards sold and loyalty reward points earned | 23,287 | 20,212 | |
Net sales from redemptions | [1] | (21,164) | (20,483) |
Breakage and amortization | [2] | (6,341) | (4,209) |
Ending balance | $ 25,163 | $ 24,932 | |
[1] | $1.0 million and $0.9 million in net sales from redemptions were included in the beginning balance of contract liabilities for the 13 weeks ended November 3, 2018 and October 28, 2017, respectively. $7.4 and $7.3 million in net sales from redemptions were included in the beginning balance of contract liabilities for the 39 weeks ended November 3, 2018 and October 28, 2017, respectively. | ||
[2] | $0.4 million in breakage and amortization were included in the beginning balance of contract liabilities for the 13 weeks ended November 3, 2018 and October 28, 2017, respectively. $3.1 million and $2.1 million in breakage and amortization were included in the beginning balance of contract liabilities for the 39 weeks ended November 3, 2018 and October 28, 2017, respectively. |
Basis of Presentation - Summa_6
Basis of Presentation - Summary of Amounts Included in Contract Liabilities (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | ||
Disaggregation of Revenue [Line Items] | |||||
Contract with Customer, Liability | [1] | $ (21,164) | $ (20,483) | ||
Revenue Recognition [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract with Customer, Liability | $ 1,000 | $ 900 | 7,400 | 7,300 | |
Breakage and amortization [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract with Customer, Liability | $ 400 | $ 400 | $ 3,100 | $ 2,100 | |
[1] | $1.0 million and $0.9 million in net sales from redemptions were included in the beginning balance of contract liabilities for the 13 weeks ended November 3, 2018 and October 28, 2017, respectively. $7.4 and $7.3 million in net sales from redemptions were included in the beginning balance of contract liabilities for the 39 weeks ended November 3, 2018 and October 28, 2017, respectively. |
Basis of Presentation - Major C
Basis of Presentation - Major Components of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Nov. 03, 2018 | Feb. 03, 2018 | Oct. 28, 2017 |
Accrued Liabilities and Other Liabilities [Abstract] | |||
Property taxes | $ 18,424 | $ 17,451 | $ 17,364 |
Unredeemed gift and merchandise return cards | 8,734 | 12,150 | 8,777 |
Compensation and employee benefits | 8,649 | 7,732 | 7,944 |
Accrued vacation | 7,632 | 7,632 | 7,715 |
Other | 38,604 | 33,488 | 38,658 |
Accrued expenses and other current liabilities | $ 82,043 | $ 78,453 | $ 80,458 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Apr. 14, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 |
Schedule of Shareholders' Equity [Line Items] | |||||
Dividends, per share, declared | $ 0 | $ 0.075 | |||
Cash dividends paid | $ 147 | $ 3,597 | |||
Dividends, per share, cash paid | $ 0.075 | ||||
Repurchase of shares | 3,832 | 5,636 | 52,241 | 69,122 | |
Repurchase shares value | $ 100 | $ 100 | $ 100 | $ 200 | |
Board of Directors [Member] | |||||
Schedule of Shareholders' Equity [Line Items] | |||||
Repurchase of shares, remaining | 366,889 | 366,889 |
Earnings per Share - Calculatio
Earnings per Share - Calculation of Basic and Diluted Loss Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
Basic: | ||||
Net loss | $ (16,622) | $ (14,616) | $ (10,432) | $ (23,909) |
Income allocated to participating securities | 2 | |||
Net loss available to common shareholders | $ (16,622) | $ (14,616) | $ (10,432) | $ (23,911) |
Basic weighted-average shares outstanding | 46,743 | 46,447 | 46,674 | 46,292 |
Basic loss per common share | $ (0.36) | $ (0.31) | $ (0.22) | $ (0.52) |
Diluted: | ||||
Net loss | $ (16,622) | $ (14,616) | $ (10,432) | $ (23,909) |
Income allocated to diluted participating securities | 2 | |||
Net loss available to common shareholders | $ (16,622) | $ (14,616) | $ (10,432) | $ (23,911) |
Basic weighted-average shares outstanding | 46,743 | 46,447 | 46,674 | 46,292 |
Incremental shares from share-based compensation plans | 0 | 0 | 0 | 0 |
Diluted weighted-average shares outstanding | 46,743 | 46,447 | 46,674 | 46,292 |
Diluted loss per common share | $ (0.36) | $ (0.31) | $ (0.22) | $ (0.52) |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded | 2.3 | 2.9 | 2.7 | 2.9 |
Debt - Summary of Debt (Detail)
Debt - Summary of Debt (Detail) - USD ($) $ in Thousands | Nov. 03, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jan. 30, 2016 |
Debt Disclosure [Abstract] | ||||
Revolving credit facility | $ 156,551 | $ 142,387 | $ 147,483 | |
Term loan | 35,000 | |||
Promissory note | 13,738 | |||
Equipment term loan | 3,333 | |||
Total | 191,551 | 156,125 | 150,816 | |
Total | 191,551 | 156,125 | 150,816 | |
Current portion | (13,738) | (3,333) | ||
Debt issuance costs | (894) | (11) | $ (400) | |
Long-term debt | $ 190,657 | $ 142,387 | $ 147,472 |
Debt - Additional Information (
Debt - Additional Information (Detail) | Sep. 18, 2018USD ($) | Jul. 31, 2018USD ($) | Mar. 14, 2018USD ($) | Feb. 03, 2015USD ($) | Nov. 03, 2018USD ($) | Feb. 03, 2018USD ($) | Oct. 28, 2017USD ($) | Jan. 30, 2016USD ($) |
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 35,000,000 | |||||||
Debt issuance costs | $ 894,000 | $ 11,000 | $ 400,000 | |||||
Borrowing capacity covenant, percentage of credit card receivables and net recovery of inventories | 100.00% | |||||||
Letters of credit, outstanding | $ 8,500,000 | |||||||
Remaining borrowing capacity under line of credit facility | $ 74,900,000 | |||||||
Fixed charges coverage ratio | 1 | |||||||
Borrowings | $ 191,551,000 | |||||||
Short-term available borrowing | 12,800,000 | |||||||
Revolving loan commitment | $ 156,551,000 | $ 142,387,000 | $ 147,483,000 | |||||
Equipment Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 25,000,000 | |||||||
Credit facility agreement expiration date | Feb. 28, 2018 | |||||||
Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate | 0.50% | |||||||
Terms of credit agreement | Base Rate Loans bear interest equal to the highest of (a) the Federal Funds Rate plus 0.50 percent, (b) the adjusted LIBOR plus 1.00 percent, or (c) the Wells Fargo “prime rate,” plus the Applicable Margin (25 to 75 basis points). | |||||||
Weighted average interest rate on debt amounts outstanding | 4.10% | |||||||
Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed charges coverage ratio | 1 | |||||||
Weighted average interest rate on debt amounts outstanding | 10.65% | |||||||
Covenant description | The Term Loan Agreement contains customary representations and warranties, affirmative and negative covenants including the retention of the existing minimum 1.0 to 1.0 consolidated fixed charge coverage ratio under the Credit Agreement, which limits borrowing availability if not met during periods where Revolving Excess Availability (as defined in the Term Loan Agreement) is less than the greater of $20.0 million or 10.0 percent of Combined Loan Cap (as defined in the Term Loan Agreement) for four consecutive business days, and events of default for a facility of this type. | |||||||
Percent of combined loan cap | 10.00% | |||||||
Term Loan [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Remaining borrowing capacity under line of credit facility | $ 20,000,000 | |||||||
Term Loan [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Value of leasehold interests in real property | 10,000,000 | |||||||
Tranche A-1 Revolving Loan Commitment [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving loan commitment | $ 25,000,000 | |||||||
Wells Fargo Bank [Member] | Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 250,000,000 | $ 240,000,000 | ||||||
Credit facility agreement expiration date | Feb. 28, 2020 | |||||||
Wells Fargo Bank [Member] | Tranche A-1 Revolving Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | 25,000,000 | |||||||
Wells Fargo Bank [Member] | Tranche A Revolving Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 240,000,000 | 225,000,000 | ||||||
Credit facility agreement expiration date | Sep. 18, 2023 | |||||||
Debt issuance costs | 100,000 | |||||||
Loan cap percentage | 12.50% | |||||||
Number of consecutive business days | 3 | |||||||
Wells Fargo Bank [Member] | Tranche A Revolving Loan [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Loan cap percentage | 10.00% | |||||||
Sun Trust Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility agreement expiration date | Sep. 10, 2018 | Apr. 1, 2018 | ||||||
Fixed interest rate | 3.58% | 3.58% | ||||||
Sun Trust Bank [Member] | Promissory Note [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings | $ 13,000,000 | $ 13,700,000 | ||||||
Gordon Brothers Finance Company, LLC [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | 900,000 | |||||||
Gordon Brothers Finance Company, LLC [Member] | Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 35,000,000 | 50,000,000 | ||||||
Credit facility agreement expiration date | Sep. 18, 2023 | |||||||
Debt issuance costs | $ 300,000 | |||||||
Loan cap percentage | 12.50% | |||||||
Number of consecutive business days | 3 | |||||||
Terms of credit agreement | The non-default interest rate applicable to the Term Loan under the Term Loan Agreement to a fluctuating rate of interest equal to three-month LIBOR (with a floor of 1.5%) plus 8.25% per annum. | |||||||
Proceeds from term loan | 49,100,000 | |||||||
Increase in excess availability under the Credit Agreement | $ 25,000,000 | |||||||
Gordon Brothers Finance Company, LLC [Member] | Term Loan [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Loan cap percentage | 10.00% | |||||||
London Interbank Offered Rate (LIBOR) [Member] | Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate | 1.00% | |||||||
London Interbank Offered Rate (LIBOR) [Member] | Gordon Brothers Finance Company, LLC [Member] | Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate | 8.25% | |||||||
Floor rate | 1.50% |
Debt - Aggregate Maturities of
Debt - Aggregate Maturities of Debt (Detail) $ in Thousands | Nov. 03, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 0 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
2,023 | 191,551 |
Thereafter | 0 |
Total | $ 191,551 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Actual and anticipated legal settlements accrued | $ 0 | $ 0 | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended |
Nov. 03, 2018 | Nov. 03, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 0.00% | 0.00% |