Cover Page
Cover Page - shares | 9 Months Ended | |
Oct. 30, 2021 | Nov. 22, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-16435 | |
Entity Registrant Name | Chico's FAS, Inc. | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 59-2389435 | |
Entity Address, Address Line One | 11215 Metro Parkway | |
Entity Address, City or Town | Fort Myers | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33966 | |
City Area Code | 239 | |
Local Phone Number | 277-6200 | |
Title of 12(b) Security | Common Stock, Par Value $0.01 Per Share | |
Trading Symbol | CHS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 122,542,092 | |
Amendment Flag | false | |
Entity Central Index Key | 0000897429 | |
Current Fiscal Year End Date | --01-29 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Income Statement [Abstract] | ||||
Net Sales | $ 453,644 | $ 351,416 | $ 1,313,664 | $ 937,854 |
Net Sales, as a Percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Cost of goods sold | $ 269,205 | $ 274,252 | $ 820,973 | $ 827,019 |
Cost of goods sold, as a Percentage of Sales | 59.30% | 78.00% | 62.50% | 88.20% |
Gross Margin | $ 184,439 | $ 77,164 | $ 492,691 | $ 110,835 |
Gross Margin, as a Percentage of Sales | 40.70% | 22.00% | 37.50% | 11.80% |
Selling, general and administrative expenses | $ 162,469 | $ 153,096 | $ 442,637 | $ 390,571 |
Selling, general and administrative expenses, as a Percentage of Sales | 35.80% | 43.60% | 33.70% | 41.60% |
Goodwill and intangible impairment charges | $ 0 | $ 0 | $ 0 | $ 113,180 |
Goodwill and intangible impairment charges, as a Percentage of Sales | 0.00% | 0.00% | 0.00% | 12.10% |
Income (Loss) from Operations | $ 21,970 | $ (75,932) | $ 50,054 | $ (392,916) |
Income (Loss) from Operations, as a Percentage of Sales | 4.90% | (21.60%) | 3.80% | (41.90%) |
Interest expense, net | $ (1,744) | $ (536) | $ (5,170) | $ (1,387) |
Interest expense, net, as a Percentage of Sales | (0.40%) | (0.20%) | (0.40%) | (0.10%) |
Income (Loss) before Income Taxes | $ 20,226 | $ (76,468) | $ 44,884 | $ (394,303) |
Income (Loss) before Income Taxes, as a Percentage of Sales | 4.50% | (21.80%) | 3.40% | (42.00%) |
Income tax provision (benefit) | $ 2,000 | $ (20,600) | $ 9,400 | $ (113,300) |
Income tax provision (benefit), as a Percentage of Sales | 0.50% | (5.90%) | 0.70% | (12.00%) |
Net Income (Loss) | $ 18,226 | $ (55,868) | $ 35,484 | $ (281,003) |
Net Income (Loss), as a Percentage of Sales | 4.00% | (15.90%) | 2.70% | (30.00%) |
Per Share Data: | ||||
Net income (loss) per common share - basic (in dollars per share) | $ 0.15 | $ (0.48) | $ 0.30 | $ (2.43) |
Net income (loss) per common and common equivalent share – diluted (in dollars per share) | $ 0.15 | $ (0.48) | $ 0.29 | $ (2.43) |
Weighted average common shares outstanding – basic (in shares) | 117,304,112 | 116,174,306 | 117,004,683 | 115,886,832 |
Weighted average common and common equivalent shares outstanding – diluted (in shares) | 123,166,237 | 116,174,306 | 121,896,669 | 115,886,832 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 18,226 | $ (55,868) | $ 35,484 | $ (281,003) |
Other comprehensive income (loss): | ||||
Unrealized (losses) gains on marketable securities, net of taxes | (10) | (32) | (64) | (61) |
Foreign currency translation adjustment | 0 | 0 | 0 | 580 |
Comprehensive income (loss) | $ 18,216 | $ (55,900) | $ 35,420 | $ (280,484) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Current Assets: | |||
Cash and cash equivalents | $ 134,458 | $ 90,791 | $ 126,497 |
Marketable securities, at fair value | 3,006 | 18,559 | 18,667 |
Inventories | 277,738 | 203,983 | 256,542 |
Prepaid expenses and other current assets | 51,841 | 30,565 | 36,766 |
Income tax receivable | 13,125 | 58,140 | 56,774 |
Total Current Assets | 480,168 | 402,038 | 495,246 |
Property and Equipment, net | 199,853 | 241,370 | 256,715 |
Right of Use Assets | 494,808 | 586,061 | 582,074 |
Other Assets: | |||
Goodwill | 16,360 | 16,360 | 16,360 |
Other intangible assets, net | 5,000 | 5,000 | 6,164 |
Other assets, net | 25,413 | 24,049 | 37,839 |
Total Other Assets | 46,773 | 45,409 | 60,363 |
Total Assets | 1,221,602 | 1,274,878 | 1,394,398 |
Current Liabilities: | |||
Accounts payable | 172,897 | 116,506 | 147,354 |
Current lease liabilities | 177,563 | 194,551 | 208,351 |
Other current and deferred liabilities | 140,982 | 120,729 | 123,474 |
Total Current Liabilities | 491,442 | 431,786 | 479,179 |
Noncurrent Liabilities: | |||
Long-term debt | 99,000 | 149,000 | 149,000 |
Long-term lease liabilities | 415,458 | 515,797 | 509,118 |
Other noncurrent and deferred liabilities | 6,647 | 11,863 | 14,284 |
Deferred taxes | 1,500 | 1,313 | 52 |
Total Noncurrent Liabilities | 522,605 | 677,973 | 672,454 |
Commitments and Contingencies (see Note 13) | |||
Shareholders’ Equity: | |||
Preferred stock, $0.01 par value; 2,500 shares authorized; no shares issued and outstanding | 0 | 0 | 0 |
Common stock, $0.01 par value; 400,000 shares authorized; 163,806 and 161,032 and 161,219 shares issued respectively; and 122,509 and 119,735 and 119,922 shares outstanding, respectively | 1,225 | 1,197 | 1,199 |
Additional paid-in capital | 505,419 | 498,488 | 496,993 |
Treasury stock, at cost, 41,297 shares, respectively | (494,395) | (494,395) | (494,395) |
Retained earnings | 195,306 | 159,765 | 238,877 |
Accumulated other comprehensive gain | 0 | 64 | 91 |
Total Shareholders’ Equity | 207,555 | 165,119 | 242,765 |
Total Liabilities and Shareholders' Equity | $ 1,221,602 | $ 1,274,878 | $ 1,394,398 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) - Parenthetical - $ / shares | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Statement of Financial Position [Abstract] | |||
Preferred share par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred shares authorized (in shares) | 2,500,000 | 2,500,000 | 2,500,000 |
Preferred shares issued (in shares) | 0 | 0 | 0 |
Preferred shares outstanding (in shares) | 0 | 0 | 0 |
Common share par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common shares authorized (in shares) | 400,000,000 | 400,000,000 | 400,000,000 |
Common shares issued (in shares) | 163,806,000 | 161,032,000 | 161,219,000 |
Common shares outstanding (in shares) | 122,509,000 | 119,735,000 | 119,922,000 |
Treasury shares at cost (in shares) | 41,297,000 | 41,297,000 | 41,297,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative effect, period of adoption, adjustment | Cumulative effect, period of adoption, adjusted balance | Common Stock | Common StockCumulative effect, period of adoption, adjusted balance | Additional Paid-in Capital | Additional Paid-in CapitalCumulative effect, period of adoption, adjusted balance | Treasury Stock | Treasury StockCumulative effect, period of adoption, adjusted balance | Retained Earnings | Retained EarningsCumulative effect, period of adoption, adjustment | Retained EarningsCumulative effect, period of adoption, adjusted balance | Accumulated Other Comprehensive Gain (Loss) | Accumulated Other Comprehensive Gain (Loss)Cumulative effect, period of adoption, adjusted balance |
Beginning Balance (in shares) at Feb. 01, 2020 | 118,418 | 118,418 | (41,297) | (41,297) | ||||||||||
Beginning Balance at Feb. 01, 2020 | $ 530,092 | $ (838) | $ 529,254 | $ 1,184 | $ 1,184 | $ 492,129 | $ 492,129 | $ (494,395) | $ (494,395) | $ 531,602 | $ (838) | $ 530,764 | $ (428) | $ (428) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income (loss) | (281,003) | (281,003) | ||||||||||||
Unrealized losses on marketable securities, net of taxes | (61) | (61) | ||||||||||||
Foreign currency translation adjustment | 580 | 580 | ||||||||||||
Issuance of common stock (in shares) | 1,940 | |||||||||||||
Issuance of common stock | 412 | $ 19 | 393 | |||||||||||
Dividends on common stock | (10,884) | (10,884) | ||||||||||||
Repurchase of common stock & tax withholdings related to share-based awards (in shares) | (436) | |||||||||||||
Repurchase of common stock & tax withholdings related to share-based awards | (1,133) | $ (4) | (1,129) | |||||||||||
Share-based compensation | 5,600 | 5,600 | ||||||||||||
Ending Balance (in shares) at Oct. 31, 2020 | 119,922 | (41,297) | ||||||||||||
Ending Balance at Oct. 31, 2020 | 242,765 | $ 1,199 | 496,993 | $ (494,395) | 238,877 | 91 | ||||||||
Beginning Balance (in shares) at Aug. 01, 2020 | 119,891 | (41,297) | ||||||||||||
Beginning Balance at Aug. 01, 2020 | 296,798 | $ 1,199 | 495,163 | $ (494,395) | 294,708 | 123 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income (loss) | (55,868) | (55,868) | ||||||||||||
Unrealized losses on marketable securities, net of taxes | (32) | (32) | ||||||||||||
Foreign currency translation adjustment | 0 | |||||||||||||
Issuance of common stock (in shares) | 132 | |||||||||||||
Issuance of common stock | 161 | $ 1 | 160 | |||||||||||
Dividends on common stock | 37 | 37 | ||||||||||||
Repurchase of common stock & tax withholdings related to share-based awards (in shares) | (101) | |||||||||||||
Repurchase of common stock & tax withholdings related to share-based awards | (138) | $ (1) | (137) | |||||||||||
Share-based compensation | 1,807 | 1,807 | ||||||||||||
Ending Balance (in shares) at Oct. 31, 2020 | 119,922 | (41,297) | ||||||||||||
Ending Balance at Oct. 31, 2020 | 242,765 | $ 1,199 | 496,993 | $ (494,395) | 238,877 | 91 | ||||||||
Beginning Balance (in shares) at Jan. 30, 2021 | 119,735 | (41,297) | ||||||||||||
Beginning Balance at Jan. 30, 2021 | 165,119 | $ 1,197 | 498,488 | $ (494,395) | 159,765 | 64 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income (loss) | 35,484 | 35,484 | ||||||||||||
Unrealized losses on marketable securities, net of taxes | (64) | (64) | ||||||||||||
Foreign currency translation adjustment | 0 | |||||||||||||
Issuance of common stock (in shares) | 3,242 | |||||||||||||
Issuance of common stock | 0 | $ 33 | (33) | |||||||||||
Dividends on common stock | 57 | 57 | ||||||||||||
Repurchase of common stock & tax withholdings related to share-based awards (in shares) | (468) | |||||||||||||
Repurchase of common stock & tax withholdings related to share-based awards | (1,877) | $ (5) | (1,872) | |||||||||||
Share-based compensation | 8,836 | 8,836 | ||||||||||||
Ending Balance (in shares) at Oct. 30, 2021 | 122,509 | (41,297) | ||||||||||||
Ending Balance at Oct. 30, 2021 | 207,555 | $ 1,225 | 505,419 | $ (494,395) | 195,306 | 0 | ||||||||
Beginning Balance (in shares) at Jul. 31, 2021 | 122,565 | (41,297) | ||||||||||||
Beginning Balance at Jul. 31, 2021 | 187,086 | $ 1,226 | 503,168 | $ (494,395) | 177,077 | 10 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income (loss) | 18,226 | 18,226 | ||||||||||||
Unrealized losses on marketable securities, net of taxes | (10) | (10) | ||||||||||||
Foreign currency translation adjustment | 0 | |||||||||||||
Issuance of common stock (in shares) | 94 | |||||||||||||
Issuance of common stock | (1) | (1) | ||||||||||||
Dividends on common stock | 3 | 3 | ||||||||||||
Repurchase of common stock & tax withholdings related to share-based awards (in shares) | (150) | |||||||||||||
Repurchase of common stock & tax withholdings related to share-based awards | (896) | $ (1) | (895) | |||||||||||
Share-based compensation | 3,147 | 3,147 | ||||||||||||
Ending Balance (in shares) at Oct. 30, 2021 | 122,509 | (41,297) | ||||||||||||
Ending Balance at Oct. 30, 2021 | $ 207,555 | $ 1,225 | $ 505,419 | $ (494,395) | $ 195,306 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - Parenthetical - $ / shares | 9 Months Ended | 12 Months Ended |
Oct. 31, 2020 | Feb. 01, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Accounting standards update | Accounting Standards Update 2016-13 [Member] | |
Dividends paid on common stock (in dollars per share) | $ 0.09 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | Jan. 30, 2021 | |
Cash Flows from Operating Activities: | |||||
Net income (loss) | $ 18,226,000 | $ (55,868,000) | $ 35,484,000 | $ (281,003,000) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||
Goodwill and intangible impairment charges | 0 | 0 | 0 | 113,180,000 | |
Inventory write-offs | 374,000 | 59,687,000 | |||
Depreciation and amortization | 39,662,000 | 48,536,000 | |||
Non-cash lease expense | 139,116,000 | 163,072,000 | |||
Exit of frontline Canada operations | 0 | 498,000 | |||
Right of use asset impairment | 0 | 0 | 3,236,000 | ||
Loss on disposal and impairment of property and equipment, net | 1,432,000 | 27,554,000 | |||
Deferred tax benefit | 190,000 | (18,409,000) | |||
Share-based compensation expense | 8,836,000 | 5,600,000 | |||
Changes in assets and liabilities: | |||||
Inventories | (74,129,000) | (71,004,000) | |||
Prepaid expenses and other assets | (13,830,000) | (2,704,000) | |||
Income tax receivable | 45,015,000 | (49,643,000) | |||
Accounts payable | 56,503,000 | 12,923,000 | |||
Accrued and other liabilities | 16,643,000 | 19,097,000 | |||
Lease liability | (166,990,000) | (94,500,000) | |||
Net cash provided by (used in) operating activities | 88,306,000 | (63,880,000) | |||
Cash Flows from Investing Activities: | |||||
Purchases of marketable securities | (269,000) | (5,351,000) | |||
Proceeds from sale of marketable securities | 15,753,000 | 50,500,000 | |||
Purchases of property and equipment | (8,246,000) | (9,537,000) | |||
Net cash provided by investing activities | 7,238,000 | 35,612,000 | |||
Cash Flows from Financing Activities: | |||||
Proceeds from borrowings | 0 | 255,500,000 | |||
Payments on borrowings | (50,000,000) | (149,000,000) | |||
Payments of debt issuance costs | 0 | (4,279,000) | |||
Proceeds from issuance of common stock | 0 | 412,000 | |||
Dividends paid | 0 | (10,701,000) | |||
Payments of tax withholdings related to share-based awards | (1,877,000) | (1,133,000) | |||
Net cash (used in) provided by financing activities | (51,877,000) | 90,799,000 | |||
Effects of exchange rate changes on cash and cash equivalents | 0 | (6,000) | |||
Net increase in cash and cash equivalents | 43,667,000 | 62,525,000 | |||
Cash and Cash Equivalents, Beginning of period | 90,791,000 | 63,972,000 | $ 63,972,000 | ||
Cash and Cash Equivalents, End of period | $ 134,458,000 | $ 126,497,000 | 134,458,000 | 126,497,000 | $ 90,791,000 |
Supplemental Disclosures of Cash Flow Information: | |||||
Cash paid for interest | 4,590,000 | 6,456,000 | |||
Cash received for income taxes, net | $ 42,084,000 | $ (45,397,000) |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements of Chico's FAS, Inc., a Florida corporation, and its wholly-owned subsidiaries (the "Company") have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by accounting principles generally accepted in the U.S. for complete financial statements. In the opinion of management, such interim financial statements reflect all normal, recurring adjustments considered necessary to present fairly the condensed consolidated financial position, the results of operations and cash flows for the interim periods presented. All significant intercompany balances and transactions have been eliminated in consolidation. The fiscal year ended January 30, 2021 balance sheet data was derived from audited consolidated financial statements. For further information, refer to the consolidated financial statements and notes thereto for the fiscal year ended January 30, 2021, included in the Company's Annual Report on Form 10-K for the fiscal year ended January 30, 2021 filed with the Securities and Exchange Commission ("SEC") on March 9, 2021 ("2020 Annual Report on Form 10-K"). As used in this report, all references to "we," "us," "our", "the Company" and "Chico's FAS," refer to Chico's FAS, Inc. and all of its wholly-owned subsidiaries. Our fiscal years end on the Saturday closest to January 31 and are designated by the calendar year in which the fiscal year commences. Operating results for the thirteen and thirty-nine weeks ended October 30, 2021 are not necessarily indicative of the results that may be expected for the entire year. COVID-19 Pandemic Update The COVID-19 pandemic (the "pandemic") has resulted in significant challenges across our business since March 2020 and is expected to continue to disrupt our business operations for the balance of fiscal 2021. Many markets imposed limitations, varying by market and in frequency, on the access to the Company's store fleet, including temporary store closures and/or a reduction in hours, staffing and capacity. We continue to focus on evolving consumer demand emerging from the pandemic and have accelerated our transformation to a digital-first company, fast-tracking numerous innovation and technology investments across all three of our brands. Even as governmental restrictions have relaxed and markets are primarily open, we expect continued uncertainty and volatility on our business operations, operating results and operating cash flows as the ongoing economic impacts and health concerns associated with the pandemic continue to affect consumer behavior, spending levels and shopping preferences and cause disruptions to the supply chain and increase our raw materials and freight costs. Due to the above circumstance, the Company’s results of operations for the thirteen and thirty-nine weeks ended October 30, 2021 are not necessarily indicative of the results to be expected for the full fiscal year. Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the U.S. 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 pandemic has had a significant material adverse impact on our business operations, operating results and operating cash flows starting in March 2020 and is expected to continue to disrupt our business operations for the balance of fiscal 2021. The Company assessed the impact that the pandemic has had on our estimates, assumptions and accounting policies and made additional disclosures, if and as necessary. Exit of Canada Frontline Operations On July 30, 2020, Chico’s FAS Canada, Co., an immaterial subsidiary of the Company, filed for bankruptcy with the Ontario, Canada office of the Superintendent in Bankruptcy. This action resulted in the permanent closure of four Chico’s and six White House Black Market ("WHBM") boutiques in Ontario, Canada. The permanent closure of the Canadian boutiques, which constituted all of the Company’s Canadian boutiques, was part of the Company’s cost-savings measures taken to mitigate the impact of the pandemic during fiscal 2020 and address the operational and financial challenges associated with operating in Canada. In connection with this effort, in the second quarter of fiscal 2020, we exited our Canada frontline operations and recorded on a net basis a non-material charge, including the realization of a cumulative foreign currency translation adjustment. Adoption of New Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2019-12, Simplifying the Accounting for Income Taxes ("ASU 2019-12"), which eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. This guidance is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company adopted this new guidance in the first quarter of fiscal 2021. The adoption of ASU 2019-12 did not have a material impact on our unaudited condensed consolidated financial statements. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848) (“ASU 2021-01”). The amendments in ASU 2021-01 provide optional expedients and exceptions for applying Generally Accepted Accounting Principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of the reference rate reform. This guidance is effective upon issuance (January 7, 2021). The Company adopted this new guidance in the first quarter of fiscal 2021. The adoption of ASU 2021-01 did not have a material impact on our unaudited condensed consolidated financial statements. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Oct. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS The Company currently has no material recent accounting pronouncements yet to be adopted. |
Goodwill and Intangible Impairm
Goodwill and Intangible Impairment Charges | 9 Months Ended |
Oct. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Impairment Charges | GOODWILL AND INTANGIBLE IMPAIRMENT CHARGES During the thirteen weeks ended May 2, 2020 ("last year's first quarter"), the Company experienced a significant decline in its market capitalization and disruptions to its operations as a result of the pandemic. Consequently, the Company reduced its level of forecasted earnings for fiscal 2020 and future periods across all of its brands. In light of the decline in the Company's stock price and market capitalization, the Company concluded that these factors, among other factors, represented impairment indicators which required the Company to test its goodwill and indefinite-lived intangible assets for impairment during last year's first quarter. The Company performed its valuation of its goodwill and indefinite-lived intangible assets using a quantitative approach as of April 4, 2020 (the "interim test"), which was the last day in the second month of last year's first quarter. Changes in key assumptions and the resulting reduction in projected future cash flows included in the interim test resulted in a decrease in the fair values of our Chico's and WHBM reporting units such that their fair values were less than their carrying values. As a result, the Company recognized the following pre-tax goodwill impairment charges during the thirty-nine weeks ended October 31, 2020: a charge of $20.0 million at the Chico's reporting unit and a charge of $60.4 million at the WHBM reporting unit. The carrying values of goodwill at the Chico's and WHBM reporting units were $16.4 million and zero, respectively, and are included in goodwill in the accompanying unaudited condensed consolidated balance sheet as of October 31, 2020. In addition, the Company recognized pre-tax impairment charges during the thirty-nine weeks ended October 31, 2020 to write down the carrying values of its other indefinite-lived intangible assets to their fair values as follows: $28.0 million of our WHBM trademark and $4.8 million of our Chico's franchise rights. The carrying values of the trademark and franchise rights were $6.0 million and $0.2 million, respectively, and are included in other intangible assets, net, in the accompanying unaudited condensed consolidated balance sheet as of October 31, 2020. Collectively, these impairment charges are included in goodwill and intangible impairment charges in the accompanying unaudited condensed consolidated statements of income (loss). The Company evaluated the need to perform an interim impairment test for its goodwill and indefinite-lived intangible assets during the thirteen and thirty-nine weeks ended October 30, 2021 and during the thirteen weeks ended October 31, 2020. We considered macroeconomic, industry-specific and Company-specific factors in addition to the estimates and assumptions used in the most recently completed goodwill and indefinite-lived intangible assets analysis. Based on review of both quantitative and qualitative factors, we determined that we did not have a triggering event that would require an interim impairment test of goodwill and indefinite-lived intangible assets, and accordingly, we did not record any goodwill and intangible impairment charges during the thirteen and thirty-nine weeks ended October 30, 2021 and during the thirteen weeks ended October 31, 2020. The following table details the changes in goodwill and other indefinite-lived intangible assets, net: October 30, 2021 Gross Carrying Amount Accumulated Impairment Charge Net Carrying Amount Goodwill: Chico's reporting unit $ 36,403 $ (20,043) $ 16,360 WHBM reporting unit 60,371 (60,371) — $ 96,774 $ (80,414) $ 16,360 Other intangible assets: WHBM trademark $ 34,000 $ (29,000) $ 5,000 Chico's franchise rights 4,930 (4,930) — $ 38,930 $ (33,930) $ 5,000 January 30, 2021 Gross Carrying Amount Accumulated Impairment Charge Net Carrying Amount Goodwill: Chico's reporting unit $ 36,403 $ (20,043) $ 16,360 WHBM reporting unit 60,371 (60,371) — $ 96,774 $ (80,414) $ 16,360 Other intangible assets: WHBM trademark $ 34,000 $ (29,000) $ 5,000 Chico's franchise rights 4,930 (4,930) — $ 38,930 $ (33,930) $ 5,000 October 31, 2020 Gross Carrying Amount Accumulated Impairment Charge Net Carrying Amount Goodwill: Chico's reporting unit $ 36,403 $ (20,043) $ 16,360 WHBM reporting unit 60,371 (60,371) — $ 96,774 $ (80,414) $ 16,360 Other intangible assets: WHBM trademark $ 34,000 $ (28,000) $ 6,000 Chico's franchise rights 4,930 (4,766) 164 $ 38,930 $ (32,766) $ 6,164 |
Long-lived Asset Impairment Cha
Long-lived Asset Impairment Charges | 9 Months Ended |
Oct. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Long-lived Asset Impairment Charges | LONG-LIVED ASSET IMPAIRMENT CHARGES Long-lived assets, including definite-lived intangibles, are reviewed periodically for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company uses market participant rent assumptions to calculate the fair value of right of use ("ROU") assets and discounted future cash flows of the asset or asset group using projected financial information and a discount rate that approximates the cost of capital of a market participant to quantify fair value for other long-lived assets. The asset group is defined as the lowest level for which identifiable cash flows are available and largely independent of the cash flows of other groups of assets, which for our retail stores, is primarily at the store level. Fiscal 2021 Long-Lived Asset Impairment Charges During the thirteen and thirty-nine weeks ended October 30, 2021, the Company considered whether events or changes in circumstances existed that would indicate the carrying amount of long-lived assets at retail stores may not be recoverable. Based on a review of both quantitative and qualitative factors, only a small number of underperforming stores had triggering events and were assessed for impairment during the thirteen and thirty-nine weeks ended October 30, 2021. Pre-tax impairment charges for long-lived assets at retail stores during the thirteen and thirty-nine weeks ended October 30, 2021 were immaterial. We recorded $1.2 million in impairment expense during the thirty-nine weeks ended October 30, 2021 related to certain Company-owned real estate which is included in selling, general and administrative expenses in the accompanying unaudited condensed consolidated statements of income (loss). We did not record impairment charges related to our operating lease assets during the thirteen and thirty-nine weeks ended October 30, 2021. Fiscal 2020 Long-Lived Asset Impairment Charges Related to the Pandemic The Company experienced varying degrees of business disruptions and periods of store closures or reduced operating hours as a result of the pandemic during the thirteen and thirty-nine weeks ended October 31, 2020. In light of the pandemic and lower-than-expected earnings for fiscal 2020 and future periods, the Company concluded that these factors, among other factors, represented impairment indicators which required the Company to test certain of its long-lived assets and operating lease assets for impairment during the thirteen and thirty-nine weeks ended October 31, 2020. As a result of the impact of the pandemic during the thirteen and thirty-nine weeks ended October 31, 2020, we recorded pre-tax impairment charges of approximately $8.8 million and $27.3 million, respectively, upon completion of our evaluation of long-lived assets, which primarily consisted of leasehold improvements at certain underperforming stores, capitalized implementation costs related to our cloud computing arrangements, and other technology-related assets. For the thirteen weeks ended October 31, 2020, these charges are reflected in the financial statements as $0.4 million in cost of goods sold ("COGS") and $8.4 million in selling, general and administrative ("SG&A") expenses in the accompanying unaudited condensed consolidated statements of income (loss). For the thirty-nine weeks ended October 31, 2020, these charges are reflected in the financial statements as $18.4 million in COGS and $8.9 million in SG&A expenses in the accompanying unaudited condensed consolidated statements of income (loss). These charges reduced the net carrying value of certain long-lived assets to their estimated fair value, as determined using a discounted cash flow model. As a result of the impact of the pandemic during the thirty-nine weeks ended October 31, 2020, we completed an evaluation of our operating lease assets for indicators of impairment, and consequently, recorded pre-tax impairment charges of approximately $3.2 million, which is included in COGS in the accompanying unaudited condensed consolidated statements of income (loss). We did not record impairment charges related to our operating lease assets during the thirteen weeks ended October 31, 2020. |
Inventory
Inventory | 9 Months Ended |
Oct. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY We use the moving average cost method to determine the cost of merchandise inventories. We identify potentially excess and slow-moving inventories by evaluating inventory aging, turn rates and inventory levels in conjunction with our overall sales trend. Further, inventory realization exposure is identified through analysis of gross margins and markdowns in combination with changes in current business trends. We record excess and slow-moving inventories at net realizable value. We recorded no inventory write-offs for the thirteen weeks and $0.4 million in inventory write-offs for the thirty-nine weeks ended October 30, 2021, which is included in COGS in the accompanying unaudited condensed consolidated statements of income (loss). Inventory adjustments made in ordinary course are presented in inventories in the accompanying unaudited condensed consolidated statements of cash flows. Inventory write-offs for the thirteen weeks ended October 31, 2020 were $5.4 million. Inventory write-offs for the thirty-nine weeks ended October 31, 2020 were $59.7 million, including $55.4 million in significant inventory write-offs as a result of changes in the market for those inventories and the resulting slowdown in sell through rates due to the impact of the pandemic. These inventory write-offs are included in COGS in the accompanying unaudited condensed consolidated statements of income (loss). |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Oct. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Disaggregated Revenue The following table disaggregates our operating segment revenue by brand, which we believe provides a meaningful depiction of the nature of our revenue. Amounts shown include licensing and wholesale revenue, which is not a significant component of total revenue, and is aggregated within the respective brands in the table below. Thirteen Weeks Ended Thirty-Nine Weeks Ended October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Chico's $ 203,505 44.9 % $ 163,847 46.6 % $ 601,914 45.8 % $ 434,868 46.4 % WHBM 138,159 30.4 104,024 29.6 364,250 27.7 270,197 28.8 Soma 111,980 24.7 83,545 23.8 347,500 26.5 232,789 24.8 Total Net Sales $ 453,644 100.0 % $ 351,416 100.0 % $ 1,313,664 100.0 % $ 937,854 100.0 % Contract Liability Contract liabilities in the unaudited condensed consolidated balance sheets are comprised of obligations associated with our gift card and customer loyalty programs. As of October 30, 2021, January 30, 2021 and October 31, 2020, contract liabilities primarily consisted of gift cards of $32.4 million, $40.4 million and $31.5 million, respectively. For the thirteen and thirty-nine weeks ended October 30, 2021, the Company recognized $3.0 million and $18.7 million, respectively, of revenue that was previously included in the gift card contract liability as of January 30, 2021. For the thirteen and thirty-nine weeks ended October 31, 2020, the Company recognized $4.1 million and $16.9 million, respectively, of revenue that was previously included in the gift card contract liability as of February 1, 2020. The contract liability for our loyalty program was not material as of October 30, 2021, January 30, 2021 or October 31, 2020. Performance Obligation |
Leases
Leases | 9 Months Ended |
Oct. 30, 2021 | |
Leases [Abstract] | |
Leases | LEASES We lease retail stores, a limited amount of office space and certain equipment under operating leases expiring in various years through the fiscal year ending 2031. All of our leases have been classified as operating leases and are recognized and measured as such. Certain operating leases provide for renewal options that are at a pre-determined period and rental value. Furthermore, certain leases provide that we may cancel the lease if our retail sales at that location fall below an established level. Within the first few years of the initial lease term, a majority of our store operating leases contain cancellation clauses that allow the leases to be terminated at our discretion, if certain minimum sales levels are not met. In the normal course of business, operating leases are typically renewed or replaced by other leases. Escalation of operating lease payments of certain leases depend on an existing index or rate, such as the consumer price index or the market interest rate. These are considered variable lease payments and are included in lease payments when the escalation is known. The Company deferred substantially all rent payments due in the months of April, May and June 2020 and otherwise made reduced rent payments where and when applicable during fiscal 2020 as a result of the impact of the pandemic. In April 2020, the FASB granted a practical expedient permitting an entity to choose to forgo the evaluation of the enforceable rights and obligations of the original lease contract, specifically in situations where rent concessions have been agreed to with landlords as a result of the pandemic. Instead, the entity may account for pandemic-related rent concessions, whatever their form (e.g. rent deferral, abatement or other) either: a) as if they were part of the enforceable rights and obligations of the parties under the existing lease contract; or b) as lease modifications. During the thirteen and thirty-nine weeks ended October 30, 2021 and October 31, 2020, we received concessions from certain landlords in the form of rent deferrals, rent abatements and other lease or rent modifications as a result of the impact of the pandemic. In accordance with the practical expedient allowed by the FASB, the Company has elected to treat all pandemic-related rent concessions and related amendments, including pandemic-related lease amendments that extended the lease term, as lease modifications under ASC 842, Leases. In addition, the Company continued recording lease expense during deferral periods, as applicable, in accordance with its existing policies. The Company made rent payments in accordance with its lease terms during the thirteen and thirty-nine weeks ended October 30, 2021. Operating lease expense was as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Operating lease cost (1) $ 53,448 $ 58,710 $ 164,195 $ 179,273 (1) For the thirteen and thirty-nine weeks ended October 30, 2021, includes $9.5 million and $28.7 million, respectively, in variable lease costs. For the thirteen and thirty-nine weeks ended October 31, 2020, includes $9.8 million and $25.9 million, respectively, in variable lease costs. Supplemental balance sheet information related to operating leases was as follows: October 30, 2021 January 30, 2021 October 31, 2020 Right of use assets $ 494,808 $ 586,061 $ 582,074 Current lease liabilities $ 177,563 $ 194,551 $ 208,351 Long-term lease liabilities 415,458 515,797 509,118 Total operating lease liabilities $ 593,021 $ 710,348 $ 717,469 Weighted Average Remaining Lease Term (years) 4.1 4.5 4.6 Weighted Average Discount Rate (1) 4.5 % 4.9 % 5.5 % (1) The incremental borrowing rate used by the Company is based on the rate at which the Company could borrow funds using its credit rating for a collateralized loan of similar term to the lease. The weighted average discount rate represents a weighted average of the incremental borrowing rate for each lease weighted based on the remaining fixed lease obligations. Supplemental cash flow information related to operating leases was as follows: Thirty-Nine Weeks Ended October 30, 2021 October 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows $ 166,990 $ 94,500 (1) Right of use assets obtained in exchange for lease obligations, non-cash 27,510 75,938 (1) The Company suspended or deferred rental payments when and where applicable as a result of the impact of the pandemic during the thirteen and thirty-nine weeks ended October 31, 2020. Maturities of operating lease liabilities as of October 30, 2021 were as follows: Fiscal Year Ending: January 29, 2022 $ 52,959 January 28, 2023 192,698 February 4, 2024 149,453 February 1, 2025 107,390 January 31, 2026 69,107 Thereafter 79,291 Total future minimum lease payments $ 650,898 Less imputed interest (57,877) Total $ 593,021 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Oct. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION For the thirty-nine weeks ended October 30, 2021 and October 31, 2020, share-based compensation expense was $8.8 million and $5.6 million, respectively. As of October 30, 2021, approximately 7.9 million shares remain available for future grants of equity awards under our 2020 Omnibus Stock and Incentive Plan. Restricted Stock Awards Restricted stock awards vest in equal annual installments over a three-year period from the date of grant, except for a restricted stock award granted to our then Chief Executive Officer in fiscal 2019, which vests over a four-year period from the date of grant, and restricted stock awards granted in March 2021, which vest 50% one year from the date of grant, 30% two years from the date of grant and 20% three years from the date of grant. Restricted stock award activity for the thirty-nine weeks ended October 30, 2021 was as follows: Number of Weighted Unvested, beginning of period 3,419,645 $ 3.75 Granted 3,730,651 2.96 Vested (1,498,137) 4.03 Forfeited (483,901) 2.89 Unvested, end of period 5,168,258 3.17 Restricted Stock Units Restricted stock units vest 100% one year from the date of grant with certain rights to defer settlement in shares of our common stock, except for restricted stock units granted in March 2021, which vest 50% one year from the date of grant, 30% two years from the date of grant and 20% three years from the date of grant. Restricted stock unit activity for the thirty-nine weeks ended October 30, 2021 was as follows: Number of Weighted Unvested, beginning of period 163,930 $ 2.49 Granted 500,000 2.56 Vested (16,580) 8.75 Unvested, end of period 647,350 2.38 Performance-based Restricted Stock Units During the third quarter, we granted performance-based restricted stock units ("PSUs") contingent upon the achievement of Company-specific performance goals during the three fiscal years 2021 through 2023. Any units earned as a result of the achievement of the performance goals of the PSUs will vest three years from the date of grant and will be settled in shares of our common stock. PSU activity for the thirty-nine weeks ended October 30, 2021 was as follows: Number of Units/ Weighted Unvested, beginning of period 2,782,457 $ 2.04 Granted 1,171,170 2.67 Forfeited (209,420) 2.10 Unvested, end of period 3,744,207 2.23 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The provision for income taxes is based on a current estimate of the annual effective tax rate and is adjusted as necessary for quarterly events. Our effective income tax rate may fluctuate from quarter to quarter as a result of a variety of factors, including changes in our assessment of certain tax contingencies, valuation allowances, changes in tax law, outcomes of administrative audits, the impact of discrete items and the mix of earnings across jurisdictions. For the thirteen weeks ended October 30, 2021 and October 31, 2020, the Company's effective tax rate was 9.9% and 26.9%, respectively. The effective tax rate of 9.9% for the thirteen weeks ended October 30, 2021 primarily reflects a change in estimate from the second quarter due to an increase in annual projected deferred tax assets on which a full valuation allowance exists, offset by a 2020 fiscal provision to return benefit due to the reversal of a valuation allowance related to 2020 temporary differences and the rate differential provided by the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. The 26.9% effective tax rate for the thirteen weeks ended October 31, 2020 includes the annual benefit of the fiscal 2020 pre-tax loss due to the CARES Act, which was slightly offset by the impact of nondeductible book goodwill impairment charges. For the thirty-nine weeks ended October 30, 2021 and October 31, 2020, the Company's effective tax rate was 20.9% and 28.7%, respectively. The effective tax rate of 20.9% for the thirty-nine weeks ended October 30, 2021 primarily reflects an annual projected deferred tax assets on which a full valuation allowance exists, offset by a 2020 fiscal provision to return benefit due to the reversal of a valuation allowance related to 2020 temporary differences, the rate differential provided by the CARES Act and favorable state audit settlements. The 28.7% effective tax rate for the thirty-nine weeks ended October 31, 2020 was primarily impacted by the benefits provided by the enactment of the CARES Act, which was reduced by the unfavorable impact of the Company’s book goodwill impairment, a valuation allowance on certain state tax credit carryforwards that are expected to expire unutilized and share-based compensation expense. |
Income (Loss) Per Share
Income (Loss) Per Share | 9 Months Ended |
Oct. 30, 2021 | |
Earnings Per Share [Abstract] | |
Income (Loss) Per Share | INCOME (LOSS) PER SHARE In accordance with relevant accounting guidance, unvested share-based payment awards that include non-forfeitable rights to dividends, whether paid or unpaid, are considered participating securities. As a result, such awards are required to be included in the calculation of income (loss) per common share pursuant to the "two-class" method. For the Company, participating securities are comprised entirely of unvested restricted stock awards granted prior to fiscal 2020. Net income (loss) per share is determined using the two-class method when it is more dilutive than the treasury stock method. Basic net income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding during the period, including participating securities. Diluted net income (loss) per share reflects the dilutive effect of potential common shares from non-participating securities such as restricted stock awards granted after fiscal 2019, stock options, PSUs and restricted stock units. The following table sets forth the computation of net income (loss) per basic and diluted share shown on the face of the accompanying condensed consolidated statements of income (loss): Thirteen Weeks Ended Thirty-Nine Weeks Ended October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Numerator Net income (loss) $ 18,226 $ (55,868) $ 35,484 $ (281,003) Net income and dividends declared allocated to participating securities (123) — (313) (173) Net income (loss) available to common shareholders $ 18,103 $ (55,868) $ 35,171 $ (281,176) Denominator Weighted average common shares outstanding – basic 117,304,112 116,174,306 117,004,683 115,886,832 Dilutive effect of non-participating securities 5,862,125 — 4,891,986 — Weighted average common and common equivalent shares outstanding – diluted 123,166,237 116,174,306 121,896,669 115,886,832 Net income (loss) per common share: Basic $ 0.15 $ (0.48) $ 0.30 $ (2.43) Diluted $ 0.15 $ (0.48) $ 0.29 $ (2.43) For the thirteen weeks ended October 30, 2021 and October 31, 2020, 0.1 million and 2.4 million potential shares of common stock, respectively, were excluded from the diluted income (loss) per common share calculation relating to non-participating securities, because the effect of including these potential shares was antidilutive. For the thirty-nine weeks ended October 30, 2021 and October 31, 2020, 0.2 million and 2.2 million potential shares of common stock, respectively, were excluded from the diluted income (loss) per common share calculation relating to non-participating securities, because the effect of including these potential shares was antidilutive. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Our financial instruments consist of cash, money market accounts, marketable securities, assets held in our non-qualified deferred compensation plan, accounts receivable and payable, and debt. Cash, accounts receivable and accounts payable are carried at cost, less reserves for credit losses as applicable, which approximates their fair value due to the short-term nature of the instruments. Marketable securities are classified as available-for-sale and as of October 30, 2021 generally consist of corporate bonds, commercial paper, U.S. government agencies and municipal securities, with $3.0 million of securities with maturity dates within one year or less and no maturity dates over one year. We consider all marketable securities available-for-sale, including those with maturity dates beyond 12 months, and therefore classify these securities within current assets on the condensed consolidated balance sheets as they are available to support current operational liquidity needs. Marketable securities are carried at fair value, with the unrealized holding gains and losses, net of income taxes, reflected in accumulated other comprehensive gain until realized, and any credit risk related losses recognized in net income (loss) during the period incurred. For the purposes of computing realized and unrealized gains and losses, cost is determined on a specific identification basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Entities are required to use a three-level hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows: Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 — Unadjusted quoted prices in active markets for similar assets or liabilities; or Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or Inputs other than quoted prices that are observable for the asset or liability Level 3 — Unobservable inputs for the asset or liability Assets Measured on a Recurring Basis We measure certain financial assets at fair value on a recurring basis, including our marketable securities, which are classified as available-for-sale securities, certain cash equivalents, specifically our money market accounts and assets held in our non-qualified deferred compensation plan. The money market accounts are valued based on quoted market prices in active markets. Our marketable securities are generally valued based on other observable inputs for those securities (including market corroborated pricing or other models that utilize observable inputs such as interest rates and yield curves) based on information provided by independent third-party pricing entities, except for U.S. government securities which are valued based on quoted market prices in active markets. The investments in our non-qualified deferred compensation plan are valued using quoted market prices and are included in other assets on our unaudited condensed consolidated balance sheets. Assets Measured on a Nonrecurring Basis From time to time, we measure certain assets at fair value on a nonrecurring basis when carrying value exceeds fair value. This includes the evaluation of long-lived assets, goodwill and other intangible assets for impairment using Company-specific assumptions which would fall within Level 3 of the fair value hierarchy. Assets that are measured at fair value on a nonrecurring basis are remeasured when carrying value exceeds fair value. Carrying value after impairment approximates fair value. We assess the carrying amount of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company uses market participant rents and a market participant discount rate to calculate the fair value of ROU assets. The Company uses discounted future cash flows of the asset or asset group using a discount rate that approximates the cost of capital of a market participant to quantify fair value for other long-lived assets within the asset group, which are primarily leasehold improvements. The asset group is defined as the lowest level for which identifiable cash flows are available and largely independent of the cash flows of other groups of assets, which for our retail stores, is primarily at the store level. To assess the fair value of goodwill, we have historically utilized both an income approach and a market approach. Inputs used to calculate the fair value based on the income approach primarily include estimated future cash flows, discounted at a rate that approximates the cost of capital of a market participant. Inputs used to calculate the fair value based on the market approach include identifying sales and EBITDA multiples based on guidelines for similar publicly traded companies and recent transactions. To assess the fair value of trademarks, we utilize a relief from royalty approach. Inputs used to calculate the fair value of the trademarks primarily include future sales projections, discounted at a rate that approximates the cost of capital of a market participant and an estimated royalty rate. The following tables present quantitative information about Level 3 significant unobservable inputs for the WHBM trademark, long-lived assets and operating lease assets at retail stores for impairment charges incurred during the periods indicated. Thirty-Nine Weeks Ended October 31, 2020 Valuation Technique Unobservable Input Range (Weighted Average) WHBM Trademark Relief from royalty Weighted-average cost of capital 11% to 13% Long-term revenue growth rate -2.5% to 0% Long-lived assets and operating lease assets at retail stores (1) Discounted cash flow Weighted-average cost of capital 9.5% to 11.5% Long-term revenue growth rate -10% to 15% (1) Specifically relates to only those locations which had impairment charges related to the pandemic during fiscal 2020. Fifty-Two Weeks Ended January 30, 2021 Valuation Technique Unobservable Input WHBM Trademark Relief from royalty Weighted-average cost of capital 13% to 15% Long-term revenue growth rate -1% to 16% Long-lived assets at retail stores and operating lease assets (1) Discounted cash flow Weighted-average cost of capital 11% to 13% Long-term revenue growth rate 2% to 53% (1) Specifically relates to only those locations which had impairment charges related to the pandemic during fiscal 2020. As of October 30, 2021, January 30, 2021 and October 31, 2020, our revolving loan and letter of credit facility approximates fair value as this instrument has a variable interest rate which approximates current market rates (Level 2 criteria). Fair value calculations contain significant judgments and estimates, which may differ from actual results due to, among other things, economic conditions, changes to the business model or changes in operating performance. The most sensitive assumptions in our estimates include short and long-term revenue recoverability rates as a result of the pandemic, which could impact future impairment charges. We conduct reviews on a quarterly basis to verify pricing, assess liquidity and determine if significant inputs have changed that would impact the fair value hierarchy disclosure. In accordance with the provisions of the guidance, we categorized our financial assets and liabilities which are valued on a recurring and nonrecurring basis, based on the priority of the inputs to the valuation technique for the instruments, as follows: Fair Value Measurements at the End of the Reporting Date Using Thirty-Nine Weeks Ended October 30, 2021 Balance as of October 30, 2021 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Impairment (1) Recurring fair value measurements: Current Assets Cash equivalents: Money market accounts $ 22,388 $ 22,388 $ — $ — Marketable securities: Corporate bonds 3,006 — 3,006 — Noncurrent Assets Deferred compensation plan 6,317 6,317 — — Total recurring fair value measurements $ 31,711 $ 28,705 $ 3,006 $ — Fair Value Measurements at the End of the Reporting Date Using Fifty-Two Weeks Ended Balance as of January 30, 2021 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Impairment Recurring fair value measurements: Current Assets Cash equivalents: Money market accounts $ 36,809 $ 36,809 $ — $ — Marketable securities: Corporate bonds 18,559 — 18,559 — Noncurrent Assets Deferred compensation plan 8,993 8,993 — — Total recurring fair value measurements $ 64,361 $ 45,802 $ 18,559 $ — Nonrecurring fair value measurements: Noncurrent Assets Goodwill $ 16,360 $ — $ — $ 16,360 $ (80,414) Trademark 5,000 — — 5,000 (29,000) Long-lived assets 7,090 — 5,990 1,100 (2) (29,669) Operating lease assets 88,488 — — 88,488 (2) (4,795) Total nonrecurring fair value measurements $ 116,938 $ — $ 5,990 $ 110,948 $ (143,878) Fair Value Measurements at the End of the Reporting Date Using Thirty-Nine Weeks Ended October 31, 2020 Balance as of October 31, 2020 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Impairment Recurring fair value measurements: Current Assets Cash equivalents: Money market accounts $ 36,678 $ 36,678 $ — $ — Marketable securities: Corporate bonds 18,667 — 18,667 — Noncurrent Assets Deferred compensation plan 7,902 7,902 — — Total recurring fair value measurements $ 63,247 $ 44,580 $ 18,667 $ — Nonrecurring fair value measurements: Noncurrent Assets Goodwill $ 16,360 $ — $ — $ 16,360 $ (80,414) Trademark 6,000 — — 6,000 (28,000) Long-lived assets 7,161 — 5,990 1,171 (2) (27,307) Operating lease assets 88,942 — — 88,942 (2) (3,236) Total nonrecurring fair value measurements $ 118,463 $ — $ 5,990 $ 112,473 $ (138,957) (1) Impairment charges for assets evaluated for impairment on a nonrecurring basis were not material during the thirty-nine weeks ended October 30, 2021. (2) The fair value of $1.1 million, $88.5 million, $1.2 million and $88.9 million specifically relates to only those locations which had asset impairment charges related to the pandemic. |
Debt
Debt | 9 Months Ended |
Oct. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | DEBT On October 30, 2020, the Company and certain material domestic subsidiaries entered into Amendment No. 1 (the "Amendment") to its credit agreement (as amended, the "Agreement"), dated as of August 2, 2018, by and among the Company, certain material domestic subsidiaries as co-borrowers and guarantors, Wells Fargo Bank, National Association ("Wells Fargo Bank"), as Agent, letter of credit issuer and swing line lender, and certain lenders party thereto. Our obligations under the Agreement are guaranteed by the guarantors and secured by a first priority lien on certain assets of the Company and certain material domestic subsidiaries, including inventory, accounts receivable, cash deposits, certain insurance proceeds, real estate, fixtures and certain intellectual property. The Agreement provides for a five-year asset-based senior secured revolving loan ("ABL") and letter of credit facility of up to $285.0 million, maturing October 30, 2025. The interest rate applicable to the ABL is equal to 2.25% (subject to increase to 2.50% based upon average quarterly excess availability under the ABL), with a LIBOR floor of 75 basis points. The Agreement also provides for a $15.0 million first-in last-out ("FILO") loan. The interest rate applicable to the FILO is equal to, at the Company's option, either a base rate, determined by reference to the federal funds rate, or a LIBOR with a floor of 75 basis points, plus in each case an interest rate margin of 4.5%. The Company expects borrowings to be at a LIBOR, plus an interest rate margin of 4.5%. The FILO includes a prepayment penalty equal to 1.0% in the first year, 0.5% in the second year and none thereafter. The FILO can only be prepaid if there are no outstanding borrowings under the ABL. In addition, the Company will pay a commitment fee per annum on the unused portion of the commitments under the Agreement. The Agreement contains customary representations, warranties, and affirmative covenants, as well as customary negative covenants, that, among other things restrict, subject to certain exceptions, the ability of the Company and certain of its domestic subsidiaries to: (i) incur liens, (ii) make investments, (iii) issue or incur additional indebtedness, (iv) undergo significant corporate changes, including mergers and acquisitions, (v) make dispositions, (vi) make restricted payments, (vii) prepay other indebtedness and (viii) enter into certain other restrictive agreements. The Company may pay cash dividends and repurchase shares under its share buyback program, subject to certain thresholds of available borrowings based upon the lesser of the aggregate amount of commitments under the Agreement and the borrowing base, determined after giving effect to any such transaction or payment, on a pro forma basis. As of October 30, 2021, our outstanding debt consisted of $99.0 million in borrowings under the Agreement. Availability under the Agreement is determined based upon a monthly borrowing base calculation which includes eligible credit card receivables, real estate and inventory, less outstanding borrowings, letters of credit and certain designated reserves. As of October 30, 2021, the available additional borrowing capacity under the Agreement was approximately $166.0 million, inclusive of $29.3 million of excess availability. As of October 30, 2021, deferred financing costs of $3.7 million was outstanding related to the Agreement and is presented in other current assets in the accompanying unaudited condensed consolidated balance sheet. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIESIn February 2021, the Company was named as a defendant in Mercedes Haldy, et al. v. White House Black Market, Inc. (“WHBM”), et al., a putative class action filed in the Superior Court of California, Orange County, and subsequently removed to the United States District Court, Central District of California (“Haldy”). The complaint alleges numerous violations of California law related to payment of wages and other compensation, meal periods, rest periods, and wage statements, among other things. Plaintiff seeks to represent a class of current and former nonexempt employees of WHBM and Chico’s stores in California. In August 2021, the Company was named as a defendant in Margarita Hernandez v. Chico’s FAS, Inc., et al., a putative class action filed in the Superior Court of California, Orange County seeking to represent a class of current and former nonexempt employees of Chico’s, WHBM and Soma stores in California (“Hernandez”). The complaint alleges many of the same wage and labor violations as the Haldy complaint, described above, and seeks the same relief. During a mediation in September 2021, the Company reached an agreement in principle to settle the above cases. A Memorandum of Understanding was entered into by all parties as of October 18, 2021. A full settlement agreement has been drafted and is being finalized for execution by all parties. Based on the foregoing, the Company does not expect that the resolution of these cases will have a material adverse effect on its results of operations or consolidated financial statements, but if a settlement agreement is not executed or is not approved by the court, the ultimate resolution of these cases could have a material adverse effect on the Company’s results of operations or consolidated financial statements. Other than as noted above, we are not currently a party to any material legal proceedings other than claims and lawsuits arising in the normal course of our business. All such matters are subject to uncertainties, and outcomes may not be predictable. Consequently, the ultimate aggregate amounts of monetary liability or financial impact with respect to other matters as of October 30, 2021 are not estimable. However, while such matters could affect our consolidated operating results when resolved in future periods, management believes that upon final disposition, any monetary liability or financial impact to us would not be material to our annual consolidated financial statements. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements of Chico's FAS, Inc., a Florida corporation, and its wholly-owned subsidiaries (the "Company") have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by accounting principles generally accepted in the U.S. for complete financial statements. In the opinion of management, such interim financial statements reflect all normal, recurring adjustments considered necessary to present fairly the condensed consolidated financial position, the results of operations and cash flows for the interim periods presented. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the U.S. 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 pandemic has had a significant material adverse impact on our business operations, operating results and operating cash flows starting in March 2020 and is expected to continue to disrupt our business operations for the balance of fiscal 2021. The Company assessed the impact that the pandemic has had on our estimates, assumptions and accounting policies and made additional disclosures, if and as necessary. |
Exit of Canada Frontline Operations | Exit of Canada Frontline OperationsOn July 30, 2020, Chico’s FAS Canada, Co., an immaterial subsidiary of the Company, filed for bankruptcy with the Ontario, Canada office of the Superintendent in Bankruptcy. This action resulted in the permanent closure of four Chico’s and six White House Black Market ("WHBM") boutiques in Ontario, Canada. The permanent closure of the Canadian boutiques, which constituted all of the Company’s Canadian boutiques, was part of the Company’s cost-savings measures taken to mitigate the impact of the pandemic during fiscal 2020 and address the operational and financial challenges associated with operating in Canada. In connection with this effort, in the second quarter of fiscal 2020, we exited our Canada frontline operations and recorded on a net basis a non-material charge, including the realization of a cumulative foreign currency translation adjustment. |
New Accounting Pronouncements | Adoption of New Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2019-12, Simplifying the Accounting for Income Taxes ("ASU 2019-12"), which eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. This guidance is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company adopted this new guidance in the first quarter of fiscal 2021. The adoption of ASU 2019-12 did not have a material impact on our unaudited condensed consolidated financial statements. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848) (“ASU 2021-01”). The amendments in ASU 2021-01 provide optional expedients and exceptions for applying Generally Accepted Accounting Principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of the reference rate reform. This guidance is effective upon issuance (January 7, 2021). The Company adopted this new guidance in the first quarter of fiscal 2021. The adoption of ASU 2021-01 did not have a material impact on our unaudited condensed consolidated financial statements. |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Our financial instruments consist of cash, money market accounts, marketable securities, assets held in our non-qualified deferred compensation plan, accounts receivable and payable, and debt. Cash, accounts receivable and accounts payable are carried at cost, less reserves for credit losses as applicable, which approximates their fair value due to the short-term nature of the instruments. Marketable securities are classified as available-for-sale and as of October 30, 2021 generally consist of corporate bonds, commercial paper, U.S. government agencies and municipal securities, with $3.0 million of securities with maturity dates within one year or less and no maturity dates over one year. We consider all marketable securities available-for-sale, including those with maturity dates beyond 12 months, and therefore classify these securities within current assets on the condensed consolidated balance sheets as they are available to support current operational liquidity needs. Marketable securities are carried at fair value, with the unrealized holding gains and losses, net of income taxes, reflected in accumulated other comprehensive gain until realized, and any credit risk related losses recognized in net income (loss) during the period incurred. For the purposes of computing realized and unrealized gains and losses, cost is determined on a specific identification basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Entities are required to use a three-level hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows: Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 — Unadjusted quoted prices in active markets for similar assets or liabilities; or Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or Inputs other than quoted prices that are observable for the asset or liability Level 3 — Unobservable inputs for the asset or liability Assets Measured on a Recurring Basis We measure certain financial assets at fair value on a recurring basis, including our marketable securities, which are classified as available-for-sale securities, certain cash equivalents, specifically our money market accounts and assets held in our non-qualified deferred compensation plan. The money market accounts are valued based on quoted market prices in active markets. Our marketable securities are generally valued based on other observable inputs for those securities (including market corroborated pricing or other models that utilize observable inputs such as interest rates and yield curves) based on information provided by independent third-party pricing entities, except for U.S. government securities which are valued based on quoted market prices in active markets. The investments in our non-qualified deferred compensation plan are valued using quoted market prices and are included in other assets on our unaudited condensed consolidated balance sheets. Assets Measured on a Nonrecurring Basis From time to time, we measure certain assets at fair value on a nonrecurring basis when carrying value exceeds fair value. This includes the evaluation of long-lived assets, goodwill and other intangible assets for impairment using Company-specific assumptions which would fall within Level 3 of the fair value hierarchy. Assets that are measured at fair value on a nonrecurring basis are remeasured when carrying value exceeds fair value. Carrying value after impairment approximates fair value. We assess the carrying amount of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company uses market participant rents and a market participant discount rate to calculate the fair value of ROU assets. The Company uses discounted future cash flows of the asset or asset group using a discount rate that approximates the cost of capital of a market participant to quantify fair value for other long-lived assets within the asset group, which are primarily leasehold improvements. The asset group is defined as the lowest level for which identifiable cash flows are available and largely independent of the cash flows of other groups of assets, which for our retail stores, is primarily at the store level. To assess the fair value of goodwill, we have historically utilized both an income approach and a market approach. Inputs used to calculate the fair value based on the income approach primarily include estimated future cash flows, discounted at a rate that approximates the cost of capital of a market participant. Inputs used to calculate the fair value based on the market approach include identifying sales and EBITDA multiples based on guidelines for similar publicly traded companies and recent transactions. To assess the fair value of trademarks, we utilize a relief from royalty approach. Inputs used to calculate the fair value of the trademarks primarily include future sales projections, discounted at a rate that approximates the cost of capital of a market participant and an estimated royalty rate. |
Goodwill and Intangible Impai_2
Goodwill and Intangible Impairment Charges (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table details the changes in goodwill and other indefinite-lived intangible assets, net: October 30, 2021 Gross Carrying Amount Accumulated Impairment Charge Net Carrying Amount Goodwill: Chico's reporting unit $ 36,403 $ (20,043) $ 16,360 WHBM reporting unit 60,371 (60,371) — $ 96,774 $ (80,414) $ 16,360 Other intangible assets: WHBM trademark $ 34,000 $ (29,000) $ 5,000 Chico's franchise rights 4,930 (4,930) — $ 38,930 $ (33,930) $ 5,000 January 30, 2021 Gross Carrying Amount Accumulated Impairment Charge Net Carrying Amount Goodwill: Chico's reporting unit $ 36,403 $ (20,043) $ 16,360 WHBM reporting unit 60,371 (60,371) — $ 96,774 $ (80,414) $ 16,360 Other intangible assets: WHBM trademark $ 34,000 $ (29,000) $ 5,000 Chico's franchise rights 4,930 (4,930) — $ 38,930 $ (33,930) $ 5,000 October 31, 2020 Gross Carrying Amount Accumulated Impairment Charge Net Carrying Amount Goodwill: Chico's reporting unit $ 36,403 $ (20,043) $ 16,360 WHBM reporting unit 60,371 (60,371) — $ 96,774 $ (80,414) $ 16,360 Other intangible assets: WHBM trademark $ 34,000 $ (28,000) $ 6,000 Chico's franchise rights 4,930 (4,766) 164 $ 38,930 $ (32,766) $ 6,164 |
Schedule of Indefinite-Lived Intangible Assets | The following table details the changes in goodwill and other indefinite-lived intangible assets, net: October 30, 2021 Gross Carrying Amount Accumulated Impairment Charge Net Carrying Amount Goodwill: Chico's reporting unit $ 36,403 $ (20,043) $ 16,360 WHBM reporting unit 60,371 (60,371) — $ 96,774 $ (80,414) $ 16,360 Other intangible assets: WHBM trademark $ 34,000 $ (29,000) $ 5,000 Chico's franchise rights 4,930 (4,930) — $ 38,930 $ (33,930) $ 5,000 January 30, 2021 Gross Carrying Amount Accumulated Impairment Charge Net Carrying Amount Goodwill: Chico's reporting unit $ 36,403 $ (20,043) $ 16,360 WHBM reporting unit 60,371 (60,371) — $ 96,774 $ (80,414) $ 16,360 Other intangible assets: WHBM trademark $ 34,000 $ (29,000) $ 5,000 Chico's franchise rights 4,930 (4,930) — $ 38,930 $ (33,930) $ 5,000 October 31, 2020 Gross Carrying Amount Accumulated Impairment Charge Net Carrying Amount Goodwill: Chico's reporting unit $ 36,403 $ (20,043) $ 16,360 WHBM reporting unit 60,371 (60,371) — $ 96,774 $ (80,414) $ 16,360 Other intangible assets: WHBM trademark $ 34,000 $ (28,000) $ 6,000 Chico's franchise rights 4,930 (4,766) 164 $ 38,930 $ (32,766) $ 6,164 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our operating segment revenue by brand, which we believe provides a meaningful depiction of the nature of our revenue. Amounts shown include licensing and wholesale revenue, which is not a significant component of total revenue, and is aggregated within the respective brands in the table below. Thirteen Weeks Ended Thirty-Nine Weeks Ended October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Chico's $ 203,505 44.9 % $ 163,847 46.6 % $ 601,914 45.8 % $ 434,868 46.4 % WHBM 138,159 30.4 104,024 29.6 364,250 27.7 270,197 28.8 Soma 111,980 24.7 83,545 23.8 347,500 26.5 232,789 24.8 Total Net Sales $ 453,644 100.0 % $ 351,416 100.0 % $ 1,313,664 100.0 % $ 937,854 100.0 % |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Leases [Abstract] | |
Lease Cost | Operating lease expense was as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Operating lease cost (1) $ 53,448 $ 58,710 $ 164,195 $ 179,273 (1) For the thirteen and thirty-nine weeks ended October 30, 2021, includes $9.5 million and $28.7 million, respectively, in variable lease costs. For the thirteen and thirty-nine weeks ended October 31, 2020, includes $9.8 million and $25.9 million, respectively, in variable lease costs. Supplemental cash flow information related to operating leases was as follows: Thirty-Nine Weeks Ended October 30, 2021 October 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows $ 166,990 $ 94,500 (1) Right of use assets obtained in exchange for lease obligations, non-cash 27,510 75,938 |
Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases was as follows: October 30, 2021 January 30, 2021 October 31, 2020 Right of use assets $ 494,808 $ 586,061 $ 582,074 Current lease liabilities $ 177,563 $ 194,551 $ 208,351 Long-term lease liabilities 415,458 515,797 509,118 Total operating lease liabilities $ 593,021 $ 710,348 $ 717,469 Weighted Average Remaining Lease Term (years) 4.1 4.5 4.6 Weighted Average Discount Rate (1) 4.5 % 4.9 % 5.5 % |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of October 30, 2021 were as follows: Fiscal Year Ending: January 29, 2022 $ 52,959 January 28, 2023 192,698 February 4, 2024 149,453 February 1, 2025 107,390 January 31, 2026 69,107 Thereafter 79,291 Total future minimum lease payments $ 650,898 Less imputed interest (57,877) Total $ 593,021 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Activity | Restricted stock award activity for the thirty-nine weeks ended October 30, 2021 was as follows: Number of Weighted Unvested, beginning of period 3,419,645 $ 3.75 Granted 3,730,651 2.96 Vested (1,498,137) 4.03 Forfeited (483,901) 2.89 Unvested, end of period 5,168,258 3.17 Restricted stock unit activity for the thirty-nine weeks ended October 30, 2021 was as follows: Number of Weighted Unvested, beginning of period 163,930 $ 2.49 Granted 500,000 2.56 Vested (16,580) 8.75 Unvested, end of period 647,350 2.38 |
Schedule of Performance-Based Restricted Stock Unit Activity | PSU activity for the thirty-nine weeks ended October 30, 2021 was as follows: Number of Units/ Weighted Unvested, beginning of period 2,782,457 $ 2.04 Granted 1,171,170 2.67 Forfeited (209,420) 2.10 Unvested, end of period 3,744,207 2.23 |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net (Loss) Income Per Share | The following table sets forth the computation of net income (loss) per basic and diluted share shown on the face of the accompanying condensed consolidated statements of income (loss): Thirteen Weeks Ended Thirty-Nine Weeks Ended October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Numerator Net income (loss) $ 18,226 $ (55,868) $ 35,484 $ (281,003) Net income and dividends declared allocated to participating securities (123) — (313) (173) Net income (loss) available to common shareholders $ 18,103 $ (55,868) $ 35,171 $ (281,176) Denominator Weighted average common shares outstanding – basic 117,304,112 116,174,306 117,004,683 115,886,832 Dilutive effect of non-participating securities 5,862,125 — 4,891,986 — Weighted average common and common equivalent shares outstanding – diluted 123,166,237 116,174,306 121,896,669 115,886,832 Net income (loss) per common share: Basic $ 0.15 $ (0.48) $ 0.30 $ (2.43) Diluted $ 0.15 $ (0.48) $ 0.29 $ (2.43) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Quantitative Information on Level 3 Fair Value Measurement | The following tables present quantitative information about Level 3 significant unobservable inputs for the WHBM trademark, long-lived assets and operating lease assets at retail stores for impairment charges incurred during the periods indicated. Thirty-Nine Weeks Ended October 31, 2020 Valuation Technique Unobservable Input Range (Weighted Average) WHBM Trademark Relief from royalty Weighted-average cost of capital 11% to 13% Long-term revenue growth rate -2.5% to 0% Long-lived assets and operating lease assets at retail stores (1) Discounted cash flow Weighted-average cost of capital 9.5% to 11.5% Long-term revenue growth rate -10% to 15% (1) Specifically relates to only those locations which had impairment charges related to the pandemic during fiscal 2020. Fifty-Two Weeks Ended January 30, 2021 Valuation Technique Unobservable Input WHBM Trademark Relief from royalty Weighted-average cost of capital 13% to 15% Long-term revenue growth rate -1% to 16% Long-lived assets at retail stores and operating lease assets (1) Discounted cash flow Weighted-average cost of capital 11% to 13% Long-term revenue growth rate 2% to 53% (1) Specifically relates to only those locations which had impairment charges related to the pandemic during fiscal 2020. |
Schedule of Financial Assets Valued on a Recurring Basis | In accordance with the provisions of the guidance, we categorized our financial assets and liabilities which are valued on a recurring and nonrecurring basis, based on the priority of the inputs to the valuation technique for the instruments, as follows: Fair Value Measurements at the End of the Reporting Date Using Thirty-Nine Weeks Ended October 30, 2021 Balance as of October 30, 2021 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Impairment (1) Recurring fair value measurements: Current Assets Cash equivalents: Money market accounts $ 22,388 $ 22,388 $ — $ — Marketable securities: Corporate bonds 3,006 — 3,006 — Noncurrent Assets Deferred compensation plan 6,317 6,317 — — Total recurring fair value measurements $ 31,711 $ 28,705 $ 3,006 $ — Fair Value Measurements at the End of the Reporting Date Using Fifty-Two Weeks Ended Balance as of January 30, 2021 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Impairment Recurring fair value measurements: Current Assets Cash equivalents: Money market accounts $ 36,809 $ 36,809 $ — $ — Marketable securities: Corporate bonds 18,559 — 18,559 — Noncurrent Assets Deferred compensation plan 8,993 8,993 — — Total recurring fair value measurements $ 64,361 $ 45,802 $ 18,559 $ — Nonrecurring fair value measurements: Noncurrent Assets Goodwill $ 16,360 $ — $ — $ 16,360 $ (80,414) Trademark 5,000 — — 5,000 (29,000) Long-lived assets 7,090 — 5,990 1,100 (2) (29,669) Operating lease assets 88,488 — — 88,488 (2) (4,795) Total nonrecurring fair value measurements $ 116,938 $ — $ 5,990 $ 110,948 $ (143,878) Fair Value Measurements at the End of the Reporting Date Using Thirty-Nine Weeks Ended October 31, 2020 Balance as of October 31, 2020 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Impairment Recurring fair value measurements: Current Assets Cash equivalents: Money market accounts $ 36,678 $ 36,678 $ — $ — Marketable securities: Corporate bonds 18,667 — 18,667 — Noncurrent Assets Deferred compensation plan 7,902 7,902 — — Total recurring fair value measurements $ 63,247 $ 44,580 $ 18,667 $ — Nonrecurring fair value measurements: Noncurrent Assets Goodwill $ 16,360 $ — $ — $ 16,360 $ (80,414) Trademark 6,000 — — 6,000 (28,000) Long-lived assets 7,161 — 5,990 1,171 (2) (27,307) Operating lease assets 88,942 — — 88,942 (2) (3,236) Total nonrecurring fair value measurements $ 118,463 $ — $ 5,990 $ 112,473 $ (138,957) (1) Impairment charges for assets evaluated for impairment on a nonrecurring basis were not material during the thirty-nine weeks ended October 30, 2021. (2) The fair value of $1.1 million, $88.5 million, $1.2 million and $88.9 million specifically relates to only those locations which had asset impairment charges related to the pandemic. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) | Jul. 30, 2020store |
Chico's | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Number of store closures | 4 |
WHBM | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Number of store closures | 6 |
Goodwill and Intangible Impai_3
Goodwill and Intangible Impairment Charges - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | Jan. 30, 2021 | |
Goodwill [Line Items] | |||||
Goodwill impairment loss | $ 0 | $ 0 | $ 0 | ||
Goodwill | 16,360,000 | 16,360,000 | 16,360,000 | $ 16,360,000 | $ 16,360,000 |
Asset impairment loss | 0 | 0 | 0 | ||
Other intangible assets, net | 5,000,000 | 6,164,000 | 5,000,000 | 6,164,000 | 5,000,000 |
WHBM trademark | |||||
Goodwill [Line Items] | |||||
Asset impairment loss | 28,000,000 | ||||
Other intangible assets, net | 5,000,000 | 6,000,000 | 5,000,000 | 6,000,000 | 5,000,000 |
Chico's franchise rights | |||||
Goodwill [Line Items] | |||||
Asset impairment loss | 4,800,000 | ||||
Other intangible assets, net | 0 | 164,000 | 0 | 164,000 | 0 |
Chico's reporting unit | |||||
Goodwill [Line Items] | |||||
Goodwill impairment loss | 20,000,000 | ||||
Goodwill | 16,360,000 | 16,360,000 | 16,360,000 | 16,360,000 | 16,360,000 |
WHBM reporting unit | |||||
Goodwill [Line Items] | |||||
Goodwill impairment loss | 60,400,000 | ||||
Goodwill | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Impai_4
Goodwill and Intangible Impairment Charges - Goodwill and Other Indefinite-Lived Intangible Assets, Net (Details) - USD ($) | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Goodwill [Line Items] | |||
Gross Carrying Amount | $ 96,774,000 | $ 96,774,000 | $ 96,774,000 |
Accumulated Impairment Charge | (80,414,000) | (80,414,000) | (80,414,000) |
Net Carrying Amount | 16,360,000 | 16,360,000 | 16,360,000 |
Other intangible assets, net | 5,000,000 | 5,000,000 | 6,164,000 |
Indefinite-lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 38,930,000 | 38,930,000 | 38,930,000 |
Accumulated Impairment Charge | (33,930,000) | (33,930,000) | (32,766,000) |
Net Carrying Amount | 5,000,000 | 5,000,000 | 6,164,000 |
WHBM trademark | |||
Goodwill [Line Items] | |||
Other intangible assets, net | 5,000,000 | 5,000,000 | 6,000,000 |
Indefinite-lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 34,000,000 | 34,000,000 | 34,000,000 |
Accumulated Impairment Charge | (29,000,000) | (29,000,000) | (28,000,000) |
Net Carrying Amount | 5,000,000 | 5,000,000 | 6,000,000 |
Chico's franchise rights | |||
Goodwill [Line Items] | |||
Other intangible assets, net | 0 | 0 | 164,000 |
Indefinite-lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 4,930,000 | 4,930,000 | 4,930,000 |
Accumulated Impairment Charge | (4,930,000) | (4,930,000) | (4,766,000) |
Net Carrying Amount | 0 | 0 | 164,000 |
Chico's reporting unit | |||
Goodwill [Line Items] | |||
Gross Carrying Amount | 36,403,000 | 36,403,000 | 36,403,000 |
Accumulated Impairment Charge | (20,043,000) | (20,043,000) | (20,043,000) |
Net Carrying Amount | 16,360,000 | 16,360,000 | 16,360,000 |
WHBM reporting unit | |||
Goodwill [Line Items] | |||
Gross Carrying Amount | 60,371,000 | 60,371,000 | 60,371,000 |
Accumulated Impairment Charge | (60,371,000) | (60,371,000) | (60,371,000) |
Net Carrying Amount | $ 0 | $ 0 | $ 0 |
Long-lived Asset Impairment C_2
Long-lived Asset Impairment Charges (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Impairment of long lived assets | $ 8,800,000 | $ 27,300,000 | ||
Right of use asset impairment and write-off | 0 | $ 0 | 3,236,000 | |
Cost of Goods Sold | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Impairment of long lived assets | 400,000 | 18,400,000 | ||
Right of use asset impairment and write-off | $ 0 | 0 | ||
SG&A Expenses | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Impairment of long lived assets | $ 8,400,000 | $ 1,200,000 | $ 8,900,000 |
Inventory (Details)
Inventory (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Inventory [Line Items] | ||||
Inventory write-offs | $ 0 | $ 5,400,000 | $ 400,000 | $ 59,700,000 |
COVID-19 | ||||
Inventory [Line Items] | ||||
Inventory write-offs | $ 55,400,000 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | Jan. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||||
Total Net Sales | $ 453,644 | $ 351,416 | $ 1,313,664 | $ 937,854 | |
Total Net Sales, as a percentage | 100.00% | 100.00% | 100.00% | 100.00% | |
Contract liabilities | $ 32,400 | $ 31,500 | $ 32,400 | $ 31,500 | $ 40,400 |
Contract liability revenue recognized | 3,000 | 4,100 | 18,700 | 16,900 | |
Chico's | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Net Sales | $ 203,505 | $ 163,847 | $ 601,914 | $ 434,868 | |
Total Net Sales, as a percentage | 44.90% | 46.60% | 45.80% | 46.40% | |
WHBM | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Net Sales | $ 138,159 | $ 104,024 | $ 364,250 | $ 270,197 | |
Total Net Sales, as a percentage | 30.40% | 29.60% | 27.70% | 28.80% | |
Soma | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Net Sales | $ 111,980 | $ 83,545 | $ 347,500 | $ 232,789 | |
Total Net Sales, as a percentage | 24.70% | 23.80% | 26.50% | 24.80% |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Leases [Abstract] | ||||
Operating lease cost | $ 53,448 | $ 58,710 | $ 164,195 | $ 179,273 |
Variable lease cost | $ 9,500 | $ 9,800 | $ 28,700 | $ 25,900 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Operating Leases (Details) - USD ($) $ in Thousands | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Leases [Abstract] | |||
Right of use assets | $ 494,808 | $ 586,061 | $ 582,074 |
Current lease liabilities | 177,563 | 194,551 | 208,351 |
Long-term lease liabilities | 415,458 | 515,797 | 509,118 |
Total operating lease liabilities | $ 593,021 | $ 710,348 | $ 717,469 |
Weighted Average Remaining Lease Term (years) | 4 years 1 month 6 days | 4 years 6 months | 4 years 7 months 6 days |
Weighted Average Discount Rate | 4.50% | 4.90% | 5.50% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 30, 2021 | Oct. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash outflows | $ 166,990 | $ 94,500 |
Right of use assets obtained in exchange for lease obligations, non-cash | $ 27,510 | $ 75,938 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||
January 29, 2022 | $ 52,959 | ||
January 28, 2023 | 192,698 | ||
February 4, 2024 | 149,453 | ||
February 1, 2025 | 107,390 | ||
January 31, 2026 | 69,107 | ||
Thereafter | 79,291 | ||
Total future minimum lease payments | 650,898 | ||
Less imputed interest | (57,877) | ||
Total | $ 593,021 | $ 710,348 | $ 717,469 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands, shares in Millions | 9 Months Ended | |
Oct. 30, 2021 | Oct. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Compensation expense related to stock-based awards | $ 8,836 | $ 5,600 |
Number of shares available for future grants (in shares) | 7.9 | |
Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Restricted Stock Awards | CEO | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Vesting percentage | 100.00% | |
Performance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Tranche One | Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 50.00% | |
Tranche One | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 50.00% | |
Tranche Two | Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 30.00% | |
Tranche Two | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 30.00% | |
Tranche Three | Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 20.00% | |
Tranche Three | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 20.00% |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Restricted Stock Awards and Performance-based Restricted Stock Unit Activity (Details) | 9 Months Ended |
Oct. 30, 2021$ / sharesshares | |
Restricted Stock Awards | |
Number of Units/ Shares | |
Unvested, beginning of period (in shares) | shares | 3,419,645 |
Granted (in shares) | shares | 3,730,651 |
Vested (in shares) | shares | (1,498,137) |
Forfeited (in shares) | shares | (483,901) |
Unvested, end of period (in shares) | shares | 5,168,258 |
Weighted Average Grant Date Fair Value | |
Unvested, beginning of period (in dollars per share) | $ / shares | $ 3.75 |
Granted (in dollars per share) | $ / shares | 2.96 |
Vested (in dollars per share) | $ / shares | 4.03 |
Forfeited (in dollars per share) | $ / shares | 2.89 |
Unvested, end of period (in dollars per share) | $ / shares | $ 3.17 |
Restricted Stock Units (RSUs) | |
Number of Units/ Shares | |
Unvested, beginning of period (in shares) | shares | 163,930 |
Granted (in shares) | shares | 500,000 |
Vested (in shares) | shares | (16,580) |
Unvested, end of period (in shares) | shares | 647,350 |
Weighted Average Grant Date Fair Value | |
Unvested, beginning of period (in dollars per share) | $ / shares | $ 2.49 |
Granted (in dollars per share) | $ / shares | 2.56 |
Vested (in dollars per share) | $ / shares | 8.75 |
Unvested, end of period (in dollars per share) | $ / shares | $ 2.38 |
Performance-Based Restricted Stock Units | |
Number of Units/ Shares | |
Unvested, beginning of period (in shares) | shares | 2,782,457 |
Granted (in shares) | shares | 1,171,170 |
Forfeited (in shares) | shares | (209,420) |
Unvested, end of period (in shares) | shares | 3,744,207 |
Weighted Average Grant Date Fair Value | |
Unvested, beginning of period (in dollars per share) | $ / shares | $ 2.04 |
Granted (in dollars per share) | $ / shares | 2.67 |
Forfeited (in dollars per share) | $ / shares | 2.10 |
Unvested, end of period (in dollars per share) | $ / shares | $ 2.23 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Income Tax Examination [Line Items] | ||||
Effective tax rate | 9.90% | 26.90% | 20.90% | 28.70% |
Income tax receivable | $ 10,400 | $ 10,400 | ||
Decrease from income tax receivable | 45,015 | $ (49,643) | ||
COVID-19 | ||||
Income Tax Examination [Line Items] | ||||
Decrease from income tax receivable | $ 50,000 |
Income (Loss) Per Share - Compu
Income (Loss) Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Numerator | ||||
Net income (loss) | $ 18,226 | $ (55,868) | $ 35,484 | $ (281,003) |
Net income and dividends declared allocated to participating securities | (123) | 0 | (313) | (173) |
Net income (loss) available to common shareholders - Basic | 18,103 | (55,868) | 35,171 | (281,176) |
Net income (loss) available to common shareholders - Diluted | $ 18,103 | $ (55,868) | $ 35,171 | $ (281,176) |
Denominator | ||||
Weighted average common shares outstanding – basic (in shares) | 117,304,112 | 116,174,306 | 117,004,683 | 115,886,832 |
Dilutive effect of non-participating securities (in shares) | 5,862,125 | 0 | 4,891,986 | 0 |
Weighted average common and common equivalent shares outstanding – diluted (in shares) | 123,166,237 | 116,174,306 | 121,896,669 | 115,886,832 |
Net income (loss) per common share: | ||||
Basic (in dollars per share) | $ 0.15 | $ (0.48) | $ 0.30 | $ (2.43) |
Diluted (in dollars per share) | $ 0.15 | $ (0.48) | $ 0.29 | $ (2.43) |
Income (Loss) Per Share - Addit
Income (Loss) Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Number of antidilutive securities (in shares) | 0.1 | 2.4 | 0.2 | 2.2 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Fair Value Disclosures [Abstract] | |||
Securities with maturity dates within one year or less | $ 3,000,000 | ||
Securities with maturity dates over one year and less than two years | $ 0 | ||
Minimum | Weighted-average cost of capital | |||
Goodwill [Line Items] | |||
Long lived asset measurement input | 11.00% | 9.50% | |
Minimum | Weighted-average cost of capital | Tradename | |||
Goodwill [Line Items] | |||
Intangible asset measurement input | 13.00% | 11.00% | |
Minimum | Long-term revenue growth rate | |||
Goodwill [Line Items] | |||
Long lived asset measurement input | 2.00% | (10.00%) | |
Minimum | Long-term revenue growth rate | Tradename | |||
Goodwill [Line Items] | |||
Intangible asset measurement input | (1.00%) | (2.50%) | |
Maximum | Weighted-average cost of capital | |||
Goodwill [Line Items] | |||
Long lived asset measurement input | 13.00% | 11.50% | |
Maximum | Weighted-average cost of capital | Tradename | |||
Goodwill [Line Items] | |||
Intangible asset measurement input | 15.00% | 13.00% | |
Maximum | Long-term revenue growth rate | |||
Goodwill [Line Items] | |||
Long lived asset measurement input | 53.00% | 15.00% | |
Maximum | Long-term revenue growth rate | Tradename | |||
Goodwill [Line Items] | |||
Intangible asset measurement input | 16.00% | 0.00% |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets Valued on a Recurring Basis (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | Jan. 30, 2021 | |
Nonrecurring fair value measurements: | |||||
Goodwill impairment loss | $ 0 | $ 0 | $ 0 | ||
Asset impairment loss | 0 | 0 | 0 | ||
Impairment of long lived assets | (8,800,000) | $ (27,300,000) | |||
Operating lease impairment loss | 0 | 0 | (3,236,000) | ||
Recurring | |||||
Current Assets | |||||
Cash equivalents | 22,388,000 | 36,678,000 | 22,388,000 | 36,678,000 | $ 36,809,000 |
Noncurrent Assets | |||||
Deferred compensation plan | 6,317,000 | 7,902,000 | 6,317,000 | 7,902,000 | 8,993,000 |
Nonrecurring fair value measurements: | |||||
Total assets | 31,711,000 | 63,247,000 | 31,711,000 | 63,247,000 | 64,361,000 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Current Assets | |||||
Cash equivalents | 22,388,000 | 36,678,000 | 22,388,000 | 36,678,000 | 36,809,000 |
Noncurrent Assets | |||||
Deferred compensation plan | 6,317,000 | 7,902,000 | 6,317,000 | 7,902,000 | 8,993,000 |
Nonrecurring fair value measurements: | |||||
Total assets | 28,705,000 | 44,580,000 | 28,705,000 | 44,580,000 | 45,802,000 |
Recurring | Significant Other Observable Inputs (Level 2) | |||||
Current Assets | |||||
Cash equivalents | 0 | 0 | 0 | 0 | 0 |
Noncurrent Assets | |||||
Deferred compensation plan | 0 | 0 | 0 | 0 | 0 |
Nonrecurring fair value measurements: | |||||
Total assets | 3,006,000 | 18,667,000 | 3,006,000 | 18,667,000 | 18,559,000 |
Recurring | Significant Unobservable Inputs (Level 3) | |||||
Current Assets | |||||
Cash equivalents | 0 | 0 | 0 | 0 | 0 |
Noncurrent Assets | |||||
Deferred compensation plan | 0 | 0 | 0 | 0 | 0 |
Nonrecurring fair value measurements: | |||||
Total assets | 0 | 0 | 0 | 0 | 0 |
Recurring | Corporate bonds | |||||
Current Assets | |||||
Marketable securities | 3,006,000 | 18,667,000 | 3,006,000 | 18,667,000 | 18,559,000 |
Recurring | Corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Current Assets | |||||
Marketable securities | 0 | 0 | 0 | 0 | 0 |
Recurring | Corporate bonds | Significant Other Observable Inputs (Level 2) | |||||
Current Assets | |||||
Marketable securities | 3,006,000 | 18,667,000 | 3,006,000 | 18,667,000 | 18,559,000 |
Recurring | Corporate bonds | Significant Unobservable Inputs (Level 3) | |||||
Current Assets | |||||
Marketable securities | $ 0 | 0 | $ 0 | 0 | 0 |
Nonrecurring | |||||
Nonrecurring fair value measurements: | |||||
Goodwill | 16,360,000 | 16,360,000 | 16,360,000 | ||
Long-lived assets | 7,161,000 | 7,161,000 | 7,090,000 | ||
Operating lease assets | 88,942,000 | 88,942,000 | 88,488,000 | ||
Total assets | 118,463,000 | 118,463,000 | 116,938,000 | ||
Goodwill impairment loss | (80,414,000) | (80,414,000) | |||
Impairment of long lived assets | (27,307,000) | (29,669,000) | |||
Operating lease impairment loss | (3,236,000) | (4,795,000) | |||
Asset Impairment Charges | (138,957,000) | (143,878,000) | |||
Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Nonrecurring fair value measurements: | |||||
Goodwill | 0 | 0 | 0 | ||
Long-lived assets | 0 | 0 | 0 | ||
Operating lease assets | 0 | 0 | 0 | ||
Total assets | 0 | 0 | 0 | ||
Nonrecurring | Significant Other Observable Inputs (Level 2) | |||||
Nonrecurring fair value measurements: | |||||
Goodwill | 0 | 0 | 0 | ||
Long-lived assets | 5,990,000 | 5,990,000 | 5,990,000 | ||
Operating lease assets | 0 | 0 | 0 | ||
Total assets | 5,990,000 | 5,990,000 | 5,990,000 | ||
Nonrecurring | Significant Unobservable Inputs (Level 3) | |||||
Nonrecurring fair value measurements: | |||||
Goodwill | 16,360,000 | 16,360,000 | 16,360,000 | ||
Long-lived assets | 1,171,000 | 1,171,000 | 1,100,000 | ||
Operating lease assets | 88,942,000 | 88,942,000 | 88,488,000 | ||
Total assets | 112,473,000 | 112,473,000 | 110,948,000 | ||
Trademark | |||||
Nonrecurring fair value measurements: | |||||
Asset impairment loss | 28,000,000 | ||||
Trademark | Nonrecurring | |||||
Nonrecurring fair value measurements: | |||||
Trademark | 6,000,000 | 6,000,000 | 5,000,000 | ||
Asset impairment loss | 28,000,000 | 29,000,000 | |||
Trademark | Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Nonrecurring fair value measurements: | |||||
Trademark | 0 | 0 | 0 | ||
Trademark | Nonrecurring | Significant Other Observable Inputs (Level 2) | |||||
Nonrecurring fair value measurements: | |||||
Trademark | 0 | 0 | 0 | ||
Trademark | Nonrecurring | Significant Unobservable Inputs (Level 3) | |||||
Nonrecurring fair value measurements: | |||||
Trademark | $ 6,000,000 | $ 6,000,000 | $ 5,000,000 |
Debt - Additional Information (
Debt - Additional Information (Details) - Revolving credit facility - USD ($) | Oct. 30, 2020 | Oct. 30, 2021 |
Line of credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, term | 5 years | |
Borrowing capacity | $ 285,000,000 | |
Long-term debt | $ 99,000,000 | |
Additional borrowing capacity | 166,000,000 | |
Excess availability of borrowing | 29,300,000 | |
Deferred financing costs | $ 3,700,000 | |
Interest rate | 2.25% | |
Line of credit | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis points | 0.75% | |
Interest rate | 2.50% | |
FILO | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | $ 15,000,000 | |
Interest rate | 4.50% | |
Prepayment penalty percentage, year one | 1.00% | |
Prepayment penalty percentage, year two | 0.50% | |
Prepayment penalty percentage, thereafter | 0.00% | |
FILO | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis points | 0.75% | |
Interest rate | 4.50% |