Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Aug. 04, 2018 | Aug. 31, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Aug. 4, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | PERY | |
Entity Registrant Name | PERRY ELLIS INTERNATIONAL, INC | |
Entity Central Index Key | 900,349 | |
Current Fiscal Year End Date | --02-02 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 15,884,000 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Aug. 04, 2018 | Feb. 03, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 21,338 | $ 35,222 |
Investments, at fair value | 14,086 | |
Accounts receivable, net | 140,453 | 156,863 |
Inventories | 135,445 | 175,459 |
Prepaid income taxes | 3,123 | 0 |
Prepaid expenses and other current assets | 12,300 | 8,151 |
Total current assets | 312,659 | 389,781 |
Property and equipment, net | 54,246 | 56,164 |
Other intangible assets, net | 185,819 | 186,216 |
Deferred income taxes | 565 | 411 |
Other assets | 1,377 | 1,590 |
TOTAL | 554,666 | 634,162 |
Current Liabilities: | ||
Accounts payable | 55,480 | 98,848 |
Accrued expenses and other liabilities | 45,501 | 35,768 |
Accrued interest payable | 47 | 1,334 |
Accrued income tax payable | 0 | 1,466 |
Unearned revenues | 3,898 | 2,907 |
Total current liabilities | 104,926 | 140,323 |
Senior subordinated notes payable, net | 0 | 49,818 |
Senior credit facility | 6,959 | 11,154 |
Real estate mortgages | 32,270 | 32,721 |
Income tax payable | 3,795 | 4,157 |
Unearned revenues and other long-term liabilities | 14,266 | 13,524 |
Deferred income taxes | 7,581 | 4,915 |
Total long-term liabilities | 64,871 | 116,289 |
Total liabilities | 169,797 | 256,612 |
Commitment and contingencies | ||
Equity: | ||
Preferred stock $.01 par value; 5,000,000 shares authorized; no shares issued or outstanding | ||
Common stock $.01 par value; 100,000,000 shares authorized; 15,884,250 shares issued and outstanding as of August 4, 2018 and 15,690,669 shares issued and outstanding as of February 3, 2018 | 159 | 157 |
Additional paid-in-capital | 154,572 | 151,563 |
Retained earnings | 239,071 | 232,977 |
Accumulated other comprehensive loss | (8,933) | (7,147) |
Total equity | 384,869 | 377,550 |
TOTAL | $ 554,666 | $ 634,162 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Aug. 04, 2018 | Feb. 03, 2018 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 15,884,250 | 15,690,669 |
Common stock, shares outstanding | 15,884,250 | 15,690,669 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Revenues: | ||||
Net sales | $ 189,338 | $ 198,394 | $ 434,773 | $ 432,217 |
Royalty income | 9,939 | 8,215 | 19,738 | 16,482 |
Total revenues | 199,277 | 206,609 | 454,511 | 448,699 |
Cost of sales | 123,445 | 130,129 | 284,812 | 281,131 |
Gross profit | 75,832 | 76,480 | 169,699 | 167,568 |
Operating expenses: | ||||
Selling, general and administrative expenses | 75,105 | 68,412 | 150,654 | 139,611 |
Depreciation and amortization | 3,389 | 3,496 | 6,616 | 6,964 |
Total operating expenses | 78,494 | 71,908 | 157,270 | 146,575 |
Operating (loss) income | (2,662) | 4,572 | 12,429 | 20,993 |
Costs on early extinguishment of debt | 134 | 0 | 134 | 0 |
Interest expense | 1,328 | 1,869 | 3,337 | 3,825 |
Net loss (income) before income taxes | (4,124) | 2,703 | 8,958 | 17,168 |
Income tax (benefit) provision | (859) | 1,724 | 1,976 | 3,418 |
Net (loss) income | $ (3,265) | $ 979 | $ 6,982 | $ 13,750 |
Net (loss) income per share: | ||||
Basic | $ (0.21) | $ 0.06 | $ 0.46 | $ 0.91 |
Diluted | $ (0.21) | $ 0.06 | $ 0.45 | $ 0.90 |
Weighted average number of shares outstanding | ||||
Basic | 15,247 | 15,075 | 15,202 | 15,042 |
Diluted | 15,247 | 15,289 | 15,570 | 15,296 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Net (loss) income | $ (3,265) | $ 979 | $ 6,982 | $ 13,750 |
Other Comprehensive income: | ||||
Foreign currency translation adjustments, net | (1,152) | 1,273 | (2,828) | 1,552 |
Unrealized gain (loss) on forward contract | 491 | (50) | 1,032 | (412) |
Unrealized (loss) gain on investments | 0 | (6) | 10 | 0 |
Total other comprehensive (loss) income | (661) | 1,217 | (1,786) | 1,140 |
Comprehensive (loss) income | $ (3,926) | $ 2,196 | $ 5,196 | $ 14,890 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 04, 2018 | Jul. 29, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 6,982 | $ 13,750 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,773 | 7,130 |
Provision for bad debts | 1,175 | 1,686 |
Amortization of debt issue costs | 181 | 202 |
Amortization of premiums and discounts | 15 | 53 |
Costs on early extinguishment of debt | 134 | 0 |
Deferred income taxes | 2,562 | (671) |
Share-based compensation | 3,237 | 3,425 |
Changes in operating assets and liabilities, net of acquisitions | ||
Accounts receivable, net | 26,652 | 8,527 |
Inventories | 38,133 | 21,342 |
Prepaid income taxes | (3,386) | 1,611 |
Prepaid expenses and other current assets | (2,806) | (300) |
Other assets | 73 | (85) |
Accounts payable and accrued expenses | (46,016) | (19,746) |
Accrued interest payable | (1,287) | (43) |
Income taxes payable | (1,329) | 1,418 |
Unearned revenues and other long-term liabilities | (33) | 2,021 |
Net cash provided by operating activities | 31,060 | 40,320 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (3,826) | (3,901) |
Purchases of investments | 0 | (28,124) |
Proceeds from investment maturities | 14,096 | 10,136 |
Net cash provided by (used) in investing activities | 10,270 | (21,889) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings from senior credit facility | 200,957 | 141,588 |
Payments on senior credit facility | (205,152) | (164,092) |
Payments on senior subordinated notes | (50,000) | 0 |
Payments on real estate mortgages | (450) | (435) |
Purchase of treasury shares | 0 | (937) |
Payments for employee taxes on shares withheld | (327) | (753) |
Payments on capital leases | (92) | (140) |
Proceeds from exercise of stock options | 101 | 23 |
Net cash used in financing activities | (54,963) | (24,746) |
Effect of exchange rate changes on cash and cash equivalents | (251) | (568) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (13,884) | (6,883) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 35,222 | 30,695 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 21,338 | 23,812 |
Cash paid during the period for: | ||
Interest | 4,428 | 3,613 |
Income taxes | 3,865 | 771 |
NON-CASH FINANCING AND INVESTING ACTIVITIES: | ||
Accrued purchases of property and equipment | 120 | 138 |
Capital lease financing | $ 703 | $ 0 |
General
General | 6 Months Ended |
Aug. 04, 2018 | |
General | 1. GENERAL The accompanying unaudited condensed consolidated financial statements of Perry Ellis International, Inc. and subsidiaries (“Perry Ellis” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the requirements of the Securities and Exchange Commission on Form 10-Q 10-K The information presented reflects all adjustments, which are in the opinion of management of a normal and recurring nature, necessary for a fair presentation of the interim periods. Results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the entire fiscal year. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Aug. 04, 2018 | |
Recent Accounting Pronouncements | 2. RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606) 2014-09 The cumulative effects of the changes made to the condensed consolidated balance sheet at February 4, 2018, as a result of the adoption of ASC 606 were as follows: Balance at Adjustments Balance at (in thousands) Accounts receivable, net $ 156,863 $ 13,017 $ 169,880 Prepaid expenses and other current assets 8,151 1,420 9,571 Deferred income tax 411 43 454 Accrued expenses and other liabilities 35,768 14,294 50,062 Unearned revenues 2,907 1,313 4,220 Deferred income taxes 4,915 (239 ) 4,676 Retained earnings 232,977 (888 ) 232,089 In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (subtopic 825-10): No. 2016-01 In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments available-for-sale available-for-sale In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force),” In May 2017, the FASB issued ASU No. 2017-09 , “Compensation – Stock Compensation (Topic718): Scope of Modification Accounting No. 2017-09 In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception,” In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” On December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220):Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” In February 2018, the FASB issued ASU No. 2018-03, Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10): 2016-01. No. 2018-03 In March 2018, the FASB issued ASU No. 2018-05, “Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118,” In July 2018, the FASB issued ASU No. 2018-09, “Codification Improvements,” 220-10, Income Statement-Reporting Comprehensive Income-Overall; 470-50, Debt-Modifications and Extinguishments 480-10, Distinguishing Liabilities from Equity-Overall; 718-740, Compensation-Stock Compensation-Income Taxes Derivatives and Hedging-Overall; 820-10, Fair Value Measurement-Overall In July 2018, the FASB issued ASU No. 2018-10, “Codification Improvements to Topic 842, Leases,” In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements” 2016-02. |
Revenue recognition
Revenue recognition | 6 Months Ended |
Aug. 04, 2018 | |
Revenue recognition | 3. REVENUE RECOGNITION The Company recognizes revenue pursuant to ASC 606. The majority of the Company’s revenue is derived from the sales of its products, which represents net sales recorded in the Company’s condensed consolidated statements of income. The Company also recognizes revenues for sales-based royalties related to its licenses of its symbolic intellectual property, principally consisting of licenses of trade names and trademarks, which represents royalty income recorded in the Company’s condensed consolidated statements of income. Disaggregation of revenue The Company has four reportable segments: Men’s Sportswear and Swim, Women’s Sportswear, Direct-to-Consumer Performance Obligations Product sales are recognized when performance obligations under the terms of the contract with the customer are satisfied. Typically, this would occur upon transfer of control, including passage of title to the customer and transfer of risk of loss related to those goods. Transfer of title and risk of loss is based upon shipment under free on board shipping point for most goods. In some instances, transfer of title and risk of loss takes place at the point of sale at the Company’s retail stores and e-commerce co-op re-assessed The Company’s contracts with customers, for a license to symbolic intellectual property, typically include a nonrefundable minimum guarantee (“MG”) establishing a floor for the amount of consideration to be paid to the Company in installments over the term of the license period. The Company earns additional sales-based royalties when the royalties exceed the nonrefundable MG. As a result, the Company’s contracts contain both a sales-based royalty and an MG and, therefore, include both fixed and variable consideration. In order to determine the appropriate approach to utilize for the pattern of recognition of transaction price for contracts that contain a MG and sales-based royalty, the Company has determined that the approach applied should be based on the Company’s evaluation of whether it is expected that the MG would be exceeded. For contracts where the Company has determined that it is unlikely that the MG will be exceeded, the Company believes that for the licenses of symbolic intellectual property, the measure of progress for the fixed consideration should be based on the time elapsed because the customer simultaneously receives and consumes the benefits as the entity performs. The Company recognizes additional sales-based royalties, if any, when the cumulative royalties exceed the MG as the Company has concluded that the variable consideration is fully constrained as it is not expected to be entitled to the variable consideration. For contracts, where the Company anticipates that the MG will be exceeded, the Company has determined that the substance of these arrangements is that it is paid consideration based on the sales-based royalties and therefore, would apply the recognition constraint on sales-based royalties in ASC 606 and will recognize the consideration based on sales-based royalty earned in each distinct period of the series. On the Company’s consolidated balance sheet, reserves for returns, allowances, co-op Contract Balances The Company recognizes unearned royalty income when licensees pay contractual obligations before being earned or when up-front Certain of the Company’s contracts with customers that provide for the license of intellectual property do not meet the adopted practical expedients. As of August 4, 2018, the Company had approximately 167 contracts for the license of intellectual property with unsatisfied performance obligations extending through December 2026. The total aggregate transaction price allocated to the unsatisfied performance obligations of these contracts was approximately $173.4 million, of which $39.3 million is expected to be realized in fiscal 2019. Significant Judgements The Company records reductions to revenue for estimated customer returns, allowances, co-op co-op Practical Expedients and Policy Elections The Company has adopted or made the following policy elections related to the accounting for sales tax, shipping and handling, costs to obtain and fulfill a contract, significant financing components, and • Sales Tax The Company has elected to exclude sales tax and similar taxes from the measurement of transaction price. As the Company historically has presented taxes on a net revenue basis, there is no change to the current presentation as a result of the adoption of ASC 606. • Shipping and Handling Costs Costs associated with shipment of products to a customer are accounted for as a fulfillment cost and are included in selling, general and administrative expenses. The Company has elected to apply the practical expedient for shipping costs and will account for shipping and handling activities performed after control of a good has been transferred to the customer as a fulfillment cost and not a performance obligation. Therefore, both revenue and costs of shipping and handling are recorded at the same time. • Costs to Obtain and Fulfill a Contract The Company historically has recognized the incremental costs of obtaining contracts as an expense when incurred, and if the amortization period of the assets that the Company otherwise would have recognized is one year or less, there is no change to the current presentation as a result of the adoption of ASC 606. As such, the Company has elected to adopt the practical expedient for costs to obtain and fulfill a contract. The Company, as of August 4, 2018 and February 3, 2018, incurred no incremental costs to obtain or fulfill the Company’s contracts with customers that were required to be capitalized. • Significant Financing Component The Company does not believe that there is a significant financing component related to product sales or for licenses of symbolic intellectual property since at inception of the contract the Company expects to be paid within one year and the right to access the license is transferred over time, respectively. As such, the Company has elected to adopt the practical expedient for evaluating whether there is a significant financing component. • Transaction Price Allocated to Future Performance Obligations Certain of the Company’s contracts meet the following practical expedients: (1) (2) (3) The impact of adoption of ASC 606 on the Company’s condensed consolidated balance sheet at August 4, 2018 and condensed consolidated statement of operations for the three months and six months ended August 4, 2018 was as follows: August 4, 2018 As Reported Excluding 606 (1) As Adjusted (in thousands) Accounts receivable, net $ 140,453 $ (13,080 ) $ 127,373 Prepaid expenses and other current assets 12,300 (2,310 ) 9,990 Accrued expenses and other liabilities 45,501 (15,457 ) 30,044 Prepaid income taxes 3,123 (121 ) 3,002 Unearned revenues 3,898 (491 ) 3,407 Retained earnings 239,071 437 239,508 Three Months Ended August 4, 2018 As Reported Excluding 606 (1) As Adjusted (in thousands) Royalty income $ 9,939 $ (1,020 ) $ 8,919 Total revenues 199,277 (1,020 ) 198,257 Gross profit 75,832 (1,020 ) 74,812 Selling, general and administrative expenses 75,105 (1,300 ) 73,805 Total operating expenses 78,494 (1,300 ) 77,194 Operating loss (2,662 ) 280 (2,382 ) Income tax provision (859 ) 61 (798 ) Net loss (3,265 ) 219 (3,046 ) Six Months Ended August 4, 2018 As Reported Excluding (1) As Adjusted (in thousands) Royalty income $ 19,738 $ (2,255 ) $ 17,483 Total revenues 454,511 (2,255 ) 452,256 Gross profit 169,699 (2,255 ) 167,444 Selling, general and administrative expenses 150,654 (2,813 ) 147,841 Total operating expenses 157,270 (2,813 ) 154,457 Operating income 12,429 558 12,987 Income tax provision 1,976 121 2,097 Net income 6,982 437 7,419 (1) Refer to footnote 2: Accounting Standards Update, No. 2014-09, |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Aug. 04, 2018 | |
Accounts Receivable | 4. ACCOUNTS RECEIVABLE Accounts receivable consisted of the following as of: August 4, February 3, (in thousands) Trade accounts $ 135,772 $ 163,872 Royalties 6,079 7,107 Other receivables 1,080 902 Total 142,931 171,881 Less: allowances (1) (2,478 ) (15,018 ) Total $ 140,453 $ 156,863 (1) Due to the adoption of Accounting Standards Update No 2014-09, “Revenue from Contracts with Customers (ASC 606),” |
Inventories
Inventories | 6 Months Ended |
Aug. 04, 2018 | |
Inventories | 5. INVENTORIES Inventories are stated at the lower of cost (weighted moving average cost) or net realizable value. Cost principally consists of the purchase price, customs, duties, freight, and commissions to buying agents. Inventories consisted of the following as of: August 4, February 3, (in thousands) Finished goods $ 135,445 $ 175,459 |
Investments
Investments | 6 Months Ended |
Aug. 04, 2018 | |
Investments | 6. INVESTMENTS The Company’s investments include marketable securities and certificates of deposit at February 3, 2018. Certificates of deposit with maturity dates less than one year are classified as available-for-sale. available-for-sale Investments consisted of the following as of February 3, 2018: Gross Gross Estimated Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Marketable securities $ 6,655 $ — $ (5 ) $ 6,650 Certificates of deposit 7,441 — (5 ) 7,436 Total investments $ 14,096 $ — $ (10 ) $ 14,086 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Aug. 04, 2018 | |
Property and Equipment | 7. PROPERTY AND EQUIPMENT Property and equipment consisted of the following as of: August 4, February 3, (in thousands) Furniture, fixtures and equipment $ 98,528 $ 97,414 Buildings and building improvements 22,296 22,341 Vehicles 430 537 Leasehold improvements 47,520 47,765 Land 9,431 9,430 Total 178,205 177,487 Less: accumulated depreciation and amortization (123,959 ) (121,323 ) Total $ 54,246 $ 56,164 The above table of property and equipment includes assets held under capital leases as of: August 4, February 3, (in thousands) Furniture, fixtures and equipment $ 703 $ 810 Less: accumulated depreciation and amortization (77 ) (722 ) Total $ 626 $ 88 For the three months ended August 4, 2018 and July 29, 2017, depreciation and amortization expense relating to property and equipment amounted to $3.3 million and $3.4 million, respectively. For the six months ended August 4, 2018 and July 29, 2017, depreciation and amortization expense relating to property and equipment amounted to $6.4 million and $6.7 million, respectively. These amounts include amortization expense for leased property under capital leases. |
Other Intangible Assets
Other Intangible Assets | 6 Months Ended |
Aug. 04, 2018 | |
Other Intangible Assets | 8. OTHER INTANGIBLE ASSETS Trademarks Trademarks included in other intangible assets, net, are considered indefinite-lived assets and totaled $184.1 million at August 4, 2018 and February 3, 2018. Other Other intangible assets represent customer lists as of: August 4, February 3, (in thousands) Customer lists $ 8,450 $ 8,450 Less: accumulated amortization (6,777 ) (6,380 ) Total $ 1,673 $ 2,070 For the three months ended August 4, 2018 and July 29, 2017, amortization expense relating to customer lists amounted to approximately $0.2 million for each of the periods. For the six months ended August 4, 2018 and July 29, 2017, amortization expense relating to customer lists amounted to $0.4 million for each of the periods. Other intangible assets are amortized over their estimated useful lives of 10 years. Assuming no impairment, the table sets forth the estimated amortization expense for the following fiscal years based on recorded amounts as of February 3, 2018: (in thousands) 2019 $ 793 2020 $ 734 2021 $ 543 |
Letter of Credit Facilities
Letter of Credit Facilities | 6 Months Ended |
Aug. 04, 2018 | |
Letter of Credit Facilities | 9. LETTER OF CREDIT FACILITIES Borrowings and availability under letter of credit facilities consisted of the following as of: August 4, February 3, 2018 2018 (in thousands) Total letter of credit facilities $ 30,000 $ 30,000 Outstanding letters of credit (8,018 ) (10,268 ) Total credit available $ 21,982 $ 19,732 |
Advertising and Related Costs
Advertising and Related Costs | 6 Months Ended |
Aug. 04, 2018 | |
Advertising and Related Costs | 10. ADVERTISING AND RELATED COSTS The Company’s accounting policy relating to advertising and related costs is to expense these costs in the period incurred. Advertising and related costs were approximately $5.5 million and $3.8 million for the three months ended August 4, 2018 and July 29, 2017, respectively, and $11.2 million and $7.8 million for the six months ended August 4, 2018 and July 29, 2017, respectively, and are included in selling, general and administrative expenses. |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 6 Months Ended |
Aug. 04, 2018 | |
Net (Loss) Income Per Share | 11. NET (LOSS) INCOME PER SHARE Basic net (loss) income per share is computed by dividing net (loss) income by the weighted average shares of outstanding common stock. The calculation of diluted net (loss) income per share is similar to basic earnings per share except that the denominator includes potentially dilutive common stock issuances. The potentially dilutive common stock issuances included in the Company’s computation of diluted net income per share includes the effects of stock options, stock appreciation rights (“SARS”), and unvested restricted shares as determined using the treasury stock method. The following table sets forth the computation of basic and diluted (loss) income per share: Three Months Ended Six Months Ended August 4, July 29, August 4, July 29, 2018 2017 2018 2017 (in thousands, except per share data) Numerator: Net (loss) income $ (3,265 ) $ 979 $ 6,982 $ 13,750 Denominator: Basic-weighted average shares 15,247 15,075 15,202 15,042 Dilutive effect: equity awards — 214 368 254 Diluted-weighted average shares 15,247 15,289 15,570 15,296 Basic (loss) income per share $ (0.21 ) $ 0.06 $ 0.46 $ 0.91 Diluted (loss) income per share $ (0.21 ) $ 0.06 $ 0.45 $ 0.90 Antidilutive effect: (1) 635 404 81 398 (1) Represents weighted average of stock options to purchase shares of common stock, SARS and restricted stock that were not included in computing diluted income per share because their effects were antidilutive for the respective periods. |
7 7_8% $150 Million Senior Subo
7 7/8% $150 Million Senior Subordinated Notes Payable | 6 Months Ended |
Aug. 04, 2018 | |
7 7/8% $150 Million Senior Subordinated Notes Payable | 12. 7 7 8 In March 2011, the Company issued $150 million of 7 7 8 7 8 On April 6, 2015, the Company elected to call for the partial redemption of $100 million of the $150 million 7 7 8 write-off On May 29, 2018, the Company completed the redemption of the remaining $50 million of the outstanding 7 7 8 7 8 7 8 7 8 |
Equity
Equity | 6 Months Ended |
Aug. 04, 2018 | |
Equity | 13. EQUITY The following table reflects the Company’s changes in equity: Changes in Equity (in thousands) Equity at February 3, 2018 $ 377,550 Retained earnings adjustment (1) (888 ) Comprehensive income 5,196 Share transactions under employee equity compensation plans 3,011 Equity at August 4, 2018 $ 384,869 Equity at January 28, 2017 $ 313,687 Comprehensive income 14,890 Share transactions under employee equity compensation plans 2,695 Purchase of treasury stock (937 ) Equity at July 29, 2017 $ 330,335 (1) Due to the adoption of Accounting Standards Update No 2014-09, “Revenue from Contracts with Customers (ASC 606),” The Board of Directors has authorized the Company to purchase, from time to time and as market and business conditions warrant, up to $70 million of the Company’s common stock for cash in the open market or in privately negotiated transactions through October 31, 2018. Although the Board of Directors allocated a maximum of $70 million to carry out the program, the Company is not obligated to purchase any specific number of outstanding shares and reevaluates the program on an ongoing basis. During the second quarter of fiscal 2018, the Company repurchased 50,000 shares of common stock at a cost of $0.9 million. Total purchases under the plan to date amount to approximately $61.7 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Aug. 04, 2018 | |
Accumulated Other Comprehensive Loss | 14. ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in the Company’s accumulated other comprehensive loss by component, net of tax (in thousands): Foreign Currency Translation Adjustments, Net Unrealized (Loss) Gain on Investments Unrealized (Loss) Gain on Forward Contract Total Balance, February 3, 2018 $ (6,488 ) $ (10 ) $ (649 ) $ (7,147 ) Other comprehensive loss (income) before reclassifications (2,828 ) 10 773 (2,045 ) Amounts reclassified from accumulated other comprehensive loss — — 259 259 Balance, August 4, 2018 $ (9,316 ) $ — $ 383 $ (8,933 ) Foreign Currency Translation Adjustments, Net Unrealized (Loss) Gain on Investments Unrealized (Loss) Gain on Forward Contract Total Balance, January 28, 2017 $ (9,902 ) $ (12 ) $ (181 ) $ (10,095 ) Other comprehensive loss (income) before reclassifications 1,552 — (404 ) 1,148 Amounts reclassified from accumulated other comprehensive loss — — (8 ) (8 ) Balance, July 29, 2017 $ (8,350 ) $ (12 ) $ (593 ) $ (8,955 ) A summary of the impact on the Company’s condensed consolidated statements of operations line items is as follows (in thousands): Three Months Ended Statement of Operations Location August 4, 2018 July 29, 2017 Forward contract loss reclassified from accumulated other comprehensive loss to income Cost of goods sold $ 96 $ 33 Six Months Ended Statement of Operations Location August 4, 2018 July 29, 2017 Forward contract loss (gain) reclassified from accumulated other comprehensive loss to income Cost of goods sold $ 259 $ (8 ) |
Derivative Financial Instrument
Derivative Financial Instrument - Cash Flow Hedges | 6 Months Ended |
Aug. 04, 2018 | |
Derivative Financial Instrument - Cash Flow Hedges | 15. DERIVATIVE FINANCIAL INSTRUMENT – Cash Flow Hedges The Company has a risk management policy to manage foreign currency risk relating to inventory purchases by its subsidiaries that are denominated in foreign currencies. As such, the Company may employ hedging and derivative strategies to limit the effects of changes in foreign currency on its operating income and cash flows. The financial impact of these hedging instruments is primarily offset by corresponding changes in the underlying exposures being hedged. The Company achieves this by closely matching the notional amount, terms and conditions of the derivative instrument with the underlying risk being hedged. The Company does not use derivative instruments for trading or speculative purposes. For derivatives that will be accounted for as hedging instruments, the Company formally designates and documents at inception the financial instrument as a hedge of a specific underlying exposure, the risk management objective and the strategy for undertaking the hedge transaction. In addition, the Company formally assesses at least quarterly whether the financial instruments used in hedging are “highly effective” at offsetting changes in cash flows of the related underlying exposures. For purposes of assessing hedge effectiveness, the Company uses the forward method, and assesses effectiveness based on the changes in both spot and forward points of the hedging instrument. If and when a derivative is no longer expected to be “highly effective,” hedge accounting is discontinued and hedge ineffectiveness, if any, is included in current period earnings. As of August 4, 2018, there was no hedge ineffectiveness. The Company’s United Kingdom subsidiary is exposed to foreign currency risk from inventory purchases. In order to mitigate the financial risk of settlement of inventory at various prices based on movement of the U.S. dollar against the British pound, the Company entered into foreign currency forward exchange contracts (the “Hedging Instruments”). These are formally designated as “highly effective” cash flow hedges. The Company hedges approximately 45% of its U.S. dollar denominated purchases. All changes in the Hedging Instruments’ fair value associated with inventory purchases are recorded in equity as a component of accumulated other comprehensive income until the underlying hedged item is reclassified to earnings. The Company records the Hedging Instruments at fair value in its consolidated balance sheets. The cash flows from derivative instruments that are designated as cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. The Company considers the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. The Company classifies derivative instrument cash flows from hedges of foreign currency risk on the settlement of inventory as operating activities. The Company’s Hedging Instruments were classified within Level 2 of the fair value hierarchy. The following table summarizes the effects, fair value and balance sheet classification of the Company’s Hedging Instruments: Derivatives Designated As Hedging Instruments Balance sheet location August 4, 2018 February 3, 2018 (in thousands) Foreign currency forward exchange contract (inventory purchases): Other Current Assets $ 383 $ — Accounts Payable $ — $ 649 The following table summarizes the effect and classification of the Company’s Hedging Instruments. Three Months Ended Six Months Ended Derivatives Designated As Hedging Instruments Statement of Operations Location August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 (in thousands) Foreign currency forward exchange contract (inventory purchases): Loss (gain) reclassified from accumulated other comprehensive loss to income Cost of goods sold $ 96 $ 33 $ 259 $ (8 ) The notional amounts outstanding of Hedging Instruments were $5.9 million and $6.0 million at August 4, 2018 and February 3, 2018, respectively. Such Hedging Instruments expire through February 2019. Accumulated other comprehensive loss included a net deferred gain (loss) for Hedging Instruments in the amount of $0.4 million and ($0.6) million at August 4, 2018 and February 3, 2018, respectively. The net deferred gain (loss) will be reclassified from accumulated other comprehensive loss to costs of goods sold during the next twelve months when the inventory is sold. |
Income Taxes
Income Taxes | 6 Months Ended |
Aug. 04, 2018 | |
Income Taxes | 16. INCOME TAXES The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The Company’s U.S. federal income tax returns for fiscal 2011 through fiscal 2018 are open tax years. The Company’s state tax filings are subject to varying statutes of limitations. The Company’s unrecognized state tax benefits are related to open tax years from fiscal 2006 through fiscal 2018, depending on each state’s particular statute of limitation. As of August 4, 2018, the examination by the Internal Revenue Service for the Company’s 2011, 2012, and 2013 U.S. federal tax years is still ongoing. The Company has a $1.4 million liability recorded for unrecognized tax benefits as of February 3, 2018, which includes interest and penalties of $0.3 million. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. All of the unrecognized tax benefits, if recognized, would affect the Company’s effective tax rate. During the three and six months ended August 4, 2018, the total amount of unrecognized tax benefits increased by approximately $31,000 and $64,000, respectively. The change to the total amount of the unrecognized tax benefit for the three and six months ended August 4, 2018 included an increase in interest and penalties of approximately $14,000 and $29,000, respectively. In the next twelve months, it is reasonably possible the Company could resolve the U.S. federal examination related to the fiscal 2011 through fiscal 2015 tax years. At the end of fiscal 2018, the Company maintained a $2.4 million valuation allowance against its remaining general domestic deferred tax assets and U.S. state net operating loss carryforwards. During the three and six months ended August 4, 2018, the related valuation allowance decreased by approximately $130,000 and $244,000, respectively. The establishment of valuation allowances and the development of projected annual effective tax rates requires significant judgment and is impacted by various estimates. Both positive and negative evidence, as well as the objectivity and verifiability of that evidence, is considered in determining the appropriateness of recording a valuation allowance on deferred tax assets. The balance of this valuation allowance is associated with U.S. domestic operations for different state and local taxing jurisdictions where the Company anticipates that it will generate continuing tax losses. |
Stock Options, Stock Appreciati
Stock Options, Stock Appreciation Rights and Restricted Shares | 6 Months Ended |
Aug. 04, 2018 | |
Stock Options, Stock Appreciation Rights and Restricted Shares | 17. STOCK OPTIONS, STOCK APPRECIATION RIGHTS AND RESTRICTED SHARES During the first quarter of fiscal 2019, the Company granted an aggregate of 45,093 shares of restricted stock to certain key employees, which vest primarily over a three-year period, at an estimated value of $1.2 million. This value is being recorded as compensation expense on a straight-line basis over the vesting period of the restricted stock. During the first quarter of fiscal 2019, the Company granted performance based restricted stock to certain key employees. Such stock generally vests 100% in April 2021, provided that each employee is still an employee of the Company on such date, and the Company has met certain performance criteria. A total of 116,328 shares of performance-based restricted stock were issued at an estimated value of $3.1 million. During the second quarter of fiscal 2019, the Company awarded to six directors an aggregate of 23,844 shares of restricted stock. The restricted stock vests primarily over a one-year During the first and second quarters of fiscal 2019, a total of 77,453 and 70,191 shares of restricted stock vested, of which 9,708 and 1,244 shares were withheld to cover the employees’ statutory income tax requirements, respectively. The estimated value of the withheld shares was $0.3 million and $0.03 million, respectively. |
Segment Information
Segment Information | 6 Months Ended |
Aug. 04, 2018 | |
Segment Information | 18. SEGMENT INFORMATION The Company has four reportable segments: Men’s Sportswear and Swim, Women’s Sportswear, Direct-to-Consumer States. The Direct-to-Consumer e-commerce The Company allocates certain corporate selling, general and administrative expenses based primarily on the revenues generated by the segments. Three Months Ended Six Months Ended August 4, July 29, August 4, July 29, 2018 2017 2018 2017 (in thousands) Revenues: Men’s Sportswear and Swim $ 151,111 $ 155,466 $ 350,717 $ 341,332 Women’s Sportswear 16,928 19,718 42,818 49,457 Direct-to-Consumer 21,299 23,210 41,238 41,428 Licensing 9,939 8,215 19,738 16,482 Total revenues $ 199,277 $ 206,609 $ 454,511 $ 448,699 Depreciation and amortization: Men’s Sportswear and Swim $ 1,997 $ 1,786 $ 3,836 $ 3,637 Women’s Sportswear 736 866 1,482 1,661 Direct-to-Consumer 596 784 1,181 1,550 Licensing 60 60 117 116 Total depreciation and amortization $ 3,389 $ 3,496 $ 6,616 $ 6,964 Operating (loss) income : Men’s Sportswear and Swim $ (3,434 ) $ 3,869 $ 9,811 $ 19,384 Women’s Sportswear (3,142 ) (3,409 ) (6,285 ) (4,378 ) Direct-to-Consumer (1,882 ) (1,960 ) (3,279 ) (6,061 ) Licensing 5,796 6,072 12,182 12,048 Total operating (loss) income $ (2,662 ) $ 4,572 $ 12,429 $ 20,993 Costs on early extinguishment of debt 134 — 134 — Total interest expense 1,328 1,869 3,337 3,825 Total net (loss) income before income taxes $ (4,124 ) $ 2,703 $ 8,958 $ 17,168 Revenues from external customers related to continuing operations in the United States and foreign countries are as follows: Three Months Ended Six Months Ended August 4, July 29, August 4, July 29, 2018 2017 2018 2017 (in thousands) United States $ 167,482 $ 177,816 $ 390,074 $ 389,888 International 31,795 28,793 64,437 58,811 Total revenues $ 199,277 $ 206,609 $ 454,511 $ 448,699 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Aug. 04, 2018 | |
Fair Value Measurements | 19. FAIR VALUE MEASUREMENTS Accounts receivable, accounts payable, accrued interest payable and accrued expenses Real estate mortgages. Senior credit facility. See footnote 15 in these notes to unaudited condensed consolidated financial statements for disclosure of the fair value and line item caption of derivative instruments recorded in the consolidated balance sheets. These estimated fair value amounts have been determined using available market information and appropriate valuation methods. |
Pending Proposed Going Private
Pending Proposed Going Private Transaction | 6 Months Ended |
Aug. 04, 2018 | |
Pending Proposed Going Private Transaction | 20. PENDING PROPOSED GOING PRIVATE TRANSACTION On February 6, 2018, the Company received an unsolicited proposal (the “Feldenkreis Proposal”) from George Feldenkreis, a current member and former Executive Chairman of the Board of Directors, and Fortress Credit Advisors LLC to acquire all of the Company’s outstanding common shares not already beneficially owned by Mr. Feldenkreis. On February 13, 2018, the Board of Directors expanded the powers of the preexisting special committee of the independent directors of the Company (the “Special Committee”) giving it the exclusive power to evaluate, negotiate and make recommendations to the Board of Directors with respect to the Feldenkreis Proposal and any alternatives thereto. The Special Committee retained Paul, Weiss, Rifkind, Wharton & Garrison LLP and Akerman LLP as its legal counsel and PJ SOLOMON as its financial advisor to assist in its review. After extensive negotiations, on June 15, 2018, the Board of Directors, acting on the unanimous recommendation of the Special Committee and with input from the Special Committee’s independent financial and legal advisors, unanimously approved the execution of a definitive merger agreement providing for, among other things, the acquisition of the Company by a newly formed entity controlled by George Feldenkreis in a transaction valued at approximately $437 million. Under the terms of the merger agreement, the Company’s unaffiliated shareholders will receive $27.50 per share in cash upon closing. Consummation of the transactions contemplated by the merger agreement remain subject to a number of conditions, including among others the adoption of the merger agreement by both a majority of the voting power of the Company’s outstanding common shares and by a majority of the voting power of the Company’s outstanding common shares not owned by any officer or director of the Company, any “Rollover Investors” (as defined in the merger agreement) or any person having any equity interest in the other parties to the merger agreement. At this time, there can be no assurance that these and the other conditions to closing will be satisfied or that the pending going private transaction contemplated by the merger agreement will be consummated in a timely manner or at all. |
Recent Accounting Pronounceme27
Recent Accounting Pronouncements (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Cumulative Effects and Impact of Adoption Changes Made to Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Income as a Result of the Adoption of ASC 606 | The cumulative effects of the changes made to the condensed consolidated balance sheet at February 4, 2018, as a result of the adoption of ASC 606 were as follows: Balance at Adjustments Balance at (in thousands) Accounts receivable, net $ 156,863 $ 13,017 $ 169,880 Prepaid expenses and other current assets 8,151 1,420 9,571 Deferred income tax 411 43 454 Accrued expenses and other liabilities 35,768 14,294 50,062 Unearned revenues 2,907 1,313 4,220 Deferred income taxes 4,915 (239 ) 4,676 Retained earnings 232,977 (888 ) 232,089 |
ASU 2014-09 | |
Cumulative Effects and Impact of Adoption Changes Made to Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Income as a Result of the Adoption of ASC 606 | The impact of adoption of ASC 606 on the Company’s condensed consolidated balance sheet at August 4, 2018 and condensed consolidated statement of operations for the three months and six months ended August 4, 2018 was as follows: August 4, 2018 As Reported Excluding 606 (1) As Adjusted (in thousands) Accounts receivable, net $ 140,453 $ (13,080 ) $ 127,373 Prepaid expenses and other current assets 12,300 (2,310 ) 9,990 Accrued expenses and other liabilities 45,501 (15,457 ) 30,044 Prepaid income taxes 3,123 (121 ) 3,002 Unearned revenues 3,898 (491 ) 3,407 Retained earnings 239,071 437 239,508 Three Months Ended August 4, 2018 As Reported Excluding 606 (1) As Adjusted (in thousands) Royalty income $ 9,939 $ (1,020 ) $ 8,919 Total revenues 199,277 (1,020 ) 198,257 Gross profit 75,832 (1,020 ) 74,812 Selling, general and administrative expenses 75,105 (1,300 ) 73,805 Total operating expenses 78,494 (1,300 ) 77,194 Operating loss (2,662 ) 280 (2,382 ) Income tax provision (859 ) 61 (798 ) Net loss (3,265 ) 219 (3,046 ) Six Months Ended August 4, 2018 As Reported Excluding (1) As Adjusted (in thousands) Royalty income $ 19,738 $ (2,255 ) $ 17,483 Total revenues 454,511 (2,255 ) 452,256 Gross profit 169,699 (2,255 ) 167,444 Selling, general and administrative expenses 150,654 (2,813 ) 147,841 Total operating expenses 157,270 (2,813 ) 154,457 Operating income 12,429 558 12,987 Income tax provision 1,976 121 2,097 Net income 6,982 437 7,419 (1) Refer to footnote 2: Accounting Standards Update, No. 2014-09, |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Components of Accounts Receivable | Accounts receivable consisted of the following as of: August 4, February 3, (in thousands) Trade accounts $ 135,772 $ 163,872 Royalties 6,079 7,107 Other receivables 1,080 902 Total 142,931 171,881 Less: allowances (1) (2,478 ) (15,018 ) Total $ 140,453 $ 156,863 (1) Due to the adoption of Accounting Standards Update No 2014-09, “Revenue from Contracts with Customers (ASC 606),” |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Summary of Inventories | Inventories consisted of the following as of: August 4, February 3, (in thousands) Finished goods $ 135,445 $ 175,459 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Investments | Investments consisted of the following as of February 3, 2018: Gross Gross Estimated Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Marketable securities $ 6,655 $ — $ (5 ) $ 6,650 Certificates of deposit 7,441 — (5 ) 7,436 Total investments $ 14,096 $ — $ (10 ) $ 14,086 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Summary of Property and Equipment | Property and equipment consisted of the following as of: August 4, February 3, (in thousands) Furniture, fixtures and equipment $ 98,528 $ 97,414 Buildings and building improvements 22,296 22,341 Vehicles 430 537 Leasehold improvements 47,520 47,765 Land 9,431 9,430 Total 178,205 177,487 Less: accumulated depreciation and amortization (123,959 ) (121,323 ) Total $ 54,246 $ 56,164 |
Summary of Property and Equipment Includes Assets Held under Capital Leases | The above table of property and equipment includes assets held under capital leases as of: August 4, February 3, (in thousands) Furniture, fixtures and equipment $ 703 $ 810 Less: accumulated depreciation and amortization (77 ) (722 ) Total $ 626 $ 88 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Summary of Other Intangible Assets | Other intangible assets represent customer lists as of: August 4, February 3, (in thousands) Customer lists $ 8,450 $ 8,450 Less: accumulated amortization (6,777 ) (6,380 ) Total $ 1,673 $ 2,070 |
Schedule of Estimated Amortization Expense for Future Periods | Assuming no impairment, the table sets forth the estimated amortization expense for the following fiscal years based on recorded amounts as of February 3, 2018: (in thousands) 2019 $ 793 2020 $ 734 2021 $ 543 |
Letter of Credit Facilities (Ta
Letter of Credit Facilities (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Borrowings and Availability under Letter of Credit Facilities | Borrowings and availability under letter of credit facilities consisted of the following as of: August 4, February 3, 2018 2018 (in thousands) Total letter of credit facilities $ 30,000 $ 30,000 Outstanding letters of credit (8,018 ) (10,268 ) Total credit available $ 21,982 $ 19,732 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Computation of Basic and Diluted Income (Loss) Per Share | The following table sets forth the computation of basic and diluted (loss) income per share: Three Months Ended Six Months Ended August 4, July 29, August 4, July 29, 2018 2017 2018 2017 (in thousands, except per share data) Numerator: Net (loss) income $ (3,265 ) $ 979 $ 6,982 $ 13,750 Denominator: Basic-weighted average shares 15,247 15,075 15,202 15,042 Dilutive effect: equity awards — 214 368 254 Diluted-weighted average shares 15,247 15,289 15,570 15,296 Basic (loss) income per share $ (0.21 ) $ 0.06 $ 0.46 $ 0.91 Diluted (loss) income per share $ (0.21 ) $ 0.06 $ 0.45 $ 0.90 Antidilutive effect: (1) 635 404 81 398 (1) Represents weighted average of stock options to purchase shares of common stock, SARS and restricted stock that were not included in computing diluted income per share because their effects were antidilutive for the respective periods. |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Changes in Equity | The following table reflects the Company’s changes in equity: Changes in Equity (in thousands) Equity at February 3, 2018 $ 377,550 Retained earnings adjustment (1) (888 ) Comprehensive income 5,196 Share transactions under employee equity compensation plans 3,011 Equity at August 4, 2018 $ 384,869 Equity at January 28, 2017 $ 313,687 Comprehensive income 14,890 Share transactions under employee equity compensation plans 2,695 Purchase of treasury stock (937 ) Equity at July 29, 2017 $ 330,335 (1) Due to the adoption of Accounting Standards Update No 2014-09, “Revenue from Contracts with Customers (ASC 606),” |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Changes in Accumulated Other Comprehensive Loss by Component Net of Tax | Changes in the Company’s accumulated other comprehensive loss by component, net of tax (in thousands): Foreign Currency Translation Adjustments, Net Unrealized (Loss) Gain on Investments Unrealized (Loss) Gain on Forward Contract Total Balance, February 3, 2018 $ (6,488 ) $ (10 ) $ (649 ) $ (7,147 ) Other comprehensive loss (income) before reclassifications (2,828 ) 10 773 (2,045 ) Amounts reclassified from accumulated other comprehensive loss — — 259 259 Balance, August 4, 2018 $ (9,316 ) $ — $ 383 $ (8,933 ) Foreign Currency Translation Adjustments, Net Unrealized (Loss) Gain on Investments Unrealized (Loss) Gain on Forward Contract Total Balance, January 28, 2017 $ (9,902 ) $ (12 ) $ (181 ) $ (10,095 ) Other comprehensive loss (income) before reclassifications 1,552 — (404 ) 1,148 Amounts reclassified from accumulated other comprehensive loss — — (8 ) (8 ) Balance, July 29, 2017 $ (8,350 ) $ (12 ) $ (593 ) $ (8,955 ) |
Summary of Impact on Condensed Consolidated Statements of Operations Line Items | A summary of the impact on the Company’s condensed consolidated statements of operations line items is as follows (in thousands): Three Months Ended Statement of Operations Location August 4, 2018 July 29, 2017 Forward contract loss reclassified from accumulated other comprehensive loss to income Cost of goods sold $ 96 $ 33 Six Months Ended Statement of Operations Location August 4, 2018 July 29, 2017 Forward contract loss (gain) reclassified from accumulated other comprehensive loss to income Cost of goods sold $ 259 $ (8 ) |
Derivative Financial Instrume37
Derivative Financial Instrument - Cash Flow Hedges (Tables) - Designated as Hedging Instrument | 6 Months Ended |
Aug. 04, 2018 | |
Fair Value and Classification of Hedging Instruments in Balance Sheet and Statement of Operations | The Company’s Hedging Instruments were classified within Level 2 of the fair value hierarchy. The following table summarizes the effects, fair value and balance sheet classification of the Company’s Hedging Instruments: Derivatives Designated As Hedging Instruments Balance sheet location August 4, 2018 February 3, 2018 (in thousands) Foreign currency forward exchange contract (inventory purchases): Other Current Assets $ 383 $ — Accounts Payable $ — $ 649 |
Summary of Effect and Classification of Hedging Instruments | The following table summarizes the effect and classification of the Company’s Hedging Instruments. Three Months Ended Six Months Ended Derivatives Designated As Hedging Instruments Statement of Operations Location August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 (in thousands) Foreign currency forward exchange contract (inventory purchases): Loss (gain) reclassified from accumulated other comprehensive loss to income Cost of goods sold $ 96 $ 33 $ 259 $ (8 ) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Segment Information | The Company allocates certain corporate selling, general and administrative expenses based primarily on the revenues generated by the segments. Three Months Ended Six Months Ended August 4, July 29, August 4, July 29, 2018 2017 2018 2017 (in thousands) Revenues: Men’s Sportswear and Swim $ 151,111 $ 155,466 $ 350,717 $ 341,332 Women’s Sportswear 16,928 19,718 42,818 49,457 Direct-to-Consumer 21,299 23,210 41,238 41,428 Licensing 9,939 8,215 19,738 16,482 Total revenues $ 199,277 $ 206,609 $ 454,511 $ 448,699 Depreciation and amortization: Men’s Sportswear and Swim $ 1,997 $ 1,786 $ 3,836 $ 3,637 Women’s Sportswear 736 866 1,482 1,661 Direct-to-Consumer 596 784 1,181 1,550 Licensing 60 60 117 116 Total depreciation and amortization $ 3,389 $ 3,496 $ 6,616 $ 6,964 Operating (loss) income : Men’s Sportswear and Swim $ (3,434 ) $ 3,869 $ 9,811 $ 19,384 Women’s Sportswear (3,142 ) (3,409 ) (6,285 ) (4,378 ) Direct-to-Consumer (1,882 ) (1,960 ) (3,279 ) (6,061 ) Licensing 5,796 6,072 12,182 12,048 Total operating (loss) income $ (2,662 ) $ 4,572 $ 12,429 $ 20,993 Costs on early extinguishment of debt 134 — 134 — Total interest expense 1,328 1,869 3,337 3,825 Total net (loss) income before income taxes $ (4,124 ) $ 2,703 $ 8,958 $ 17,168 |
Revenues From External Customers Related To Continuing Operations In United States and Foreign Countries | Revenues from external customers related to continuing operations in the United States and foreign countries are as follows: Three Months Ended Six Months Ended August 4, July 29, August 4, July 29, 2018 2017 2018 2017 (in thousands) United States $ 167,482 $ 177,816 $ 390,074 $ 389,888 International 31,795 28,793 64,437 58,811 Total revenues $ 199,277 $ 206,609 $ 454,511 $ 448,699 |
Recent Accounting Pronounceme39
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) | Feb. 04, 2018 | Aug. 04, 2018 | Aug. 04, 2018 | Feb. 03, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect reduction to retained earnings , net of tax | [1] | $ (888,000) | |||
Deferred tax expense recorded in connection with remeasurement of certain deferred tax assets and liabilities | $ 3,900,000 | 3,900,000 | |||
Current tax expense recorded in connection with transition tax provisional amount | 5,800,000 | 5,800,000 | |||
Estimate for the impact of GILTI as an increase to its tax expense | $ 200,000 | 200,000 | |||
ASU 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect reduction to retained earnings , net of tax | $ 900,000 | $ 900,000 | $ 0 | ||
[1] | Due to the adoption of Accounting Standards Update No 2014-09, "Revenue from Contracts with Customers (ASC 606)," the opening balance of retained earnings has been reduced by $0.9 million for fiscal year 2018. There was no adjustment made to retained earnings for fiscal 2019. See footnote 2. |
Cumulative Effects of Changes M
Cumulative Effects of Changes Made to Condensed Consolidated Balance Sheet as a Result of the Adoption of ASC 606 (Detail) - USD ($) $ in Thousands | Aug. 04, 2018 | Feb. 04, 2018 | Feb. 03, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable, net | $ 140,453 | $ 156,863 | |
Prepaid expenses and other current assets | 12,300 | 8,151 | |
Deferred income tax | 565 | 411 | |
Accrued expenses and other liabilities | 45,501 | 35,768 | |
Unearned revenues | 3,898 | 2,907 | |
Deferred income taxes | 7,581 | 4,915 | |
Retained earnings | 239,071 | $ 232,977 | |
ASU 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable, net | $ 169,880 | ||
Prepaid expenses and other current assets | 9,571 | ||
Deferred income tax | 454 | ||
Accrued expenses and other liabilities | 50,062 | ||
Unearned revenues | 4,220 | ||
Deferred income taxes | 4,676 | ||
Retained earnings | 232,089 | ||
ASU 2014-09 | Adjustments due to Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable, net | (13,080) | 13,017 | |
Prepaid expenses and other current assets | (2,310) | 1,420 | |
Deferred income tax | 43 | ||
Accrued expenses and other liabilities | (15,457) | 14,294 | |
Unearned revenues | (491) | 1,313 | |
Deferred income taxes | (239) | ||
Retained earnings | $ 437 | $ (888) |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Aug. 04, 2018USD ($) | Aug. 04, 2018USD ($)SegmentContract | Feb. 03, 2018USD ($) | |
Revenue From Contract With Customers [Line Items] | |||
Number of reportable segments | Segment | 4 | ||
Unearned revenues | $ 3,898 | $ 3,898 | $ 2,907 |
Revenue recognized | 3,000 | $ 5,800 | |
Number of contracts | Contract | 167 | ||
Contract performance obligation expiration month | 2026-12 | ||
Unsatisfied performance obligations | 173,400 | $ 173,400 | |
Performance obligations expected to be realized in fiscal 2019 | $ 39,300 | $ 39,300 |
Impact of Adoption of ASC 606 o
Impact of Adoption of ASC 606 on the Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Aug. 04, 2018 | Feb. 04, 2018 | Feb. 03, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable, net | $ 140,453 | $ 156,863 | |
Prepaid expenses and other current assets | 12,300 | 8,151 | |
Accrued expenses and other liabilities | 45,501 | 35,768 | |
Prepaid income taxes | 3,123 | 0 | |
Unearned revenues | 3,898 | 2,907 | |
Retained earnings | 239,071 | $ 232,977 | |
ASU 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable, net | $ 169,880 | ||
Prepaid expenses and other current assets | 9,571 | ||
Accrued expenses and other liabilities | 50,062 | ||
Unearned revenues | 4,220 | ||
Retained earnings | 232,089 | ||
ASU 2014-09 | Adjustments due to Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable, net | (13,080) | 13,017 | |
Prepaid expenses and other current assets | (2,310) | 1,420 | |
Accrued expenses and other liabilities | (15,457) | 14,294 | |
Prepaid income taxes | (121) | ||
Unearned revenues | (491) | 1,313 | |
Retained earnings | 437 | $ (888) | |
ASU 2014-09 | As Adjusted | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable, net | 127,373 | ||
Prepaid expenses and other current assets | 9,990 | ||
Accrued expenses and other liabilities | 30,044 | ||
Prepaid income taxes | 3,002 | ||
Unearned revenues | 3,407 | ||
Retained earnings | $ 239,508 |
Impact of Adoption of ASC 60643
Impact of Adoption of ASC 606 on the Condensed Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Royalty income | $ 9,939 | $ 8,215 | $ 19,738 | $ 16,482 |
Total revenues | 199,277 | 206,609 | 454,511 | 448,699 |
Gross profit | 75,832 | 76,480 | 169,699 | 167,568 |
Selling, general and administrative expenses | 75,105 | 68,412 | 150,654 | 139,611 |
Total operating expenses | 78,494 | 71,908 | 157,270 | 146,575 |
Operating (loss) income | (2,662) | 4,572 | 12,429 | 20,993 |
Income tax (benefit) provision | (859) | 1,724 | 1,976 | 3,418 |
Net (loss) income | (3,265) | $ 979 | 6,982 | $ 13,750 |
ASU 2014-09 | Adjustments due to Topic 606 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Royalty income | 1,020 | 2,255 | ||
Total revenues | 1,020 | 2,255 | ||
Gross profit | 1,020 | 2,255 | ||
Selling, general and administrative expenses | 1,300 | 2,813 | ||
Total operating expenses | 1,300 | 2,813 | ||
Operating (loss) income | (280) | (558) | ||
Income tax (benefit) provision | (61) | (121) | ||
Net (loss) income | (219) | (437) | ||
ASU 2014-09 | As Adjusted | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Royalty income | 8,919 | 17,483 | ||
Total revenues | 198,257 | 452,256 | ||
Gross profit | 74,812 | 167,444 | ||
Selling, general and administrative expenses | 73,805 | 147,841 | ||
Total operating expenses | 77,194 | 154,457 | ||
Operating (loss) income | (2,382) | 12,987 | ||
Income tax (benefit) provision | (798) | 2,097 | ||
Net (loss) income | $ (3,046) | $ 7,419 |
Components of Accounts Receivab
Components of Accounts Receivable (Detail) - USD ($) $ in Thousands | Aug. 04, 2018 | Feb. 03, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | $ 142,931 | $ 171,881 | |
Less: allowances | [1] | (2,478) | (15,018) |
Total | 140,453 | 156,863 | |
Trade Accounts Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 135,772 | 163,872 | |
Royalties Receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 6,079 | 7,107 | |
Other Receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | $ 1,080 | $ 902 | |
[1] | Due to the adoption of Accounting Standards Update No 2014-09, "Revenue from Contracts with Customers (ASC 606)," sales allowances and reserves for fiscal 2019 have been reclassified as other current liabilities. There was no reclassification made to sales allowances and reserves for fiscal 2018. Refer to footnote 2. |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Aug. 04, 2018 | Feb. 03, 2018 |
Inventory [Line Items] | ||
Finished goods | $ 135,445 | $ 175,459 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | Aug. 04, 2018 | Feb. 03, 2018 |
Schedule of Investments [Line Items] | ||
Investments | $ 0 | $ 14,086,000 |
Investments (Detail)
Investments (Detail) - USD ($) | Aug. 04, 2018 | Feb. 03, 2018 |
Schedule of Investments [Line Items] | ||
Cost | $ 14,096,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (10,000) | |
Estimated Fair Value | $ 0 | 14,086,000 |
Marketable securities | ||
Schedule of Investments [Line Items] | ||
Cost | 6,655,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (5,000) | |
Estimated Fair Value | 6,650,000 | |
Certificates of Deposit | ||
Schedule of Investments [Line Items] | ||
Cost | 7,441,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (5,000) | |
Estimated Fair Value | $ 7,436,000 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | Aug. 04, 2018 | Feb. 03, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 178,205 | $ 177,487 |
Less: accumulated depreciation and amortization | (123,959) | (121,323) |
Total | 54,246 | 56,164 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 98,528 | 97,414 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 22,296 | 22,341 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Total | 430 | 537 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 47,520 | 47,765 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 9,431 | $ 9,430 |
Summary of Property and Equipme
Summary of Property and Equipment Includes Assets Held under Capital Leases (Detail) - USD ($) $ in Thousands | Aug. 04, 2018 | Feb. 03, 2018 |
Property, Plant and Equipment [Line Items] | ||
Furniture, fixtures and equipment | $ 703 | $ 810 |
Less: accumulated depreciation and amortization | (77) | (722) |
Total | $ 626 | $ 88 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization expense related to property and equipment | $ 3.3 | $ 3.4 | $ 6.4 | $ 6.7 |
Other Intangible Assets - Addit
Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | Feb. 03, 2018 | |
Intangible Assets [Line Items] | |||||
Intangible assets amortized estimated useful lives | 10 years | ||||
Customer Lists | |||||
Intangible Assets [Line Items] | |||||
Amortization expense | $ 0.2 | $ 0.2 | $ 0.4 | $ 0.4 | |
Trademarks | |||||
Intangible Assets [Line Items] | |||||
Trademarks included in other intangible assets, net | $ 184.1 | $ 184.1 | $ 184.1 |
Intangible Assets (Detail)
Intangible Assets (Detail) - Customer Lists - USD ($) $ in Thousands | Aug. 04, 2018 | Feb. 03, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Customer lists | $ 8,450 | $ 8,450 |
Less: accumulated amortization | (6,777) | (6,380) |
Total | $ 1,673 | $ 2,070 |
Schedule of Estimated Amortizat
Schedule of Estimated Amortization Expense for Future Periods (Detail) $ in Thousands | Feb. 03, 2018USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Estimated amortization expense 2019 | $ 793 |
Estimated amortization expense 2020 | 734 |
Estimated amortization expense 2021 | $ 543 |
Letter of Credit Facilities (De
Letter of Credit Facilities (Detail) - Letter of Credit - USD ($) | Aug. 04, 2018 | Feb. 03, 2018 |
Line of Credit Facility [Line Items] | ||
Total letter of credit facilities | $ 30,000,000 | $ 30,000,000 |
Outstanding letters of credit | (8,018,000) | (10,268,000) |
Total credit available | $ 21,982,000 | $ 19,732,000 |
Advertising and Related Costs -
Advertising and Related Costs - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Advertising Costs [Line Items] | ||||
Advertising and related costs | $ 5.5 | $ 3.8 | $ 11.2 | $ 7.8 |
Computation of Basic and Dilute
Computation of Basic and Diluted Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | ||
Numerator: | |||||
Net (loss) income | $ (3,265) | $ 979 | $ 6,982 | $ 13,750 | |
Denominator: | |||||
Basic - weighted average shares | 15,247 | 15,075 | 15,202 | 15,042 | |
Dilutive effect: equity awards | 0 | 214 | 368 | 254 | |
Diluted - weighted average shares | 15,247 | 15,289 | 15,570 | 15,296 | |
Basic (loss) income per share | $ (0.21) | $ 0.06 | $ 0.46 | $ 0.91 | |
Diluted (loss) income per share | $ (0.21) | $ 0.06 | $ 0.45 | $ 0.90 | |
Antidilutive effect | [1] | 635 | 404 | 81 | 398 |
[1] | Represents weighted average of stock options to purchase shares of common stock, SARS and restricted stock that were not included in computing diluted income per share because their effects were antidilutive for the respective periods. |
7 7_8% $150 Million Senior Su57
7 7/8% $150 Million Senior Subordinated Notes Payable - Additional Information (Detail) - USD ($) | May 29, 2018 | Apr. 06, 2015 | Mar. 31, 2011 | Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | Feb. 03, 2018 |
Senior Secured Notes [Line Items] | ||||||||
Payments on senior subordinated notes | $ 50,000,000 | $ 0 | ||||||
Costs of early extinguishment of debt | $ (134,000) | $ 0 | (134,000) | $ 0 | ||||
Senior subordinated notes payable, net | $ 0 | $ 0 | $ 49,818,000 | |||||
7 7/8% Senior Subordinated Notes Due 2019 | ||||||||
Senior Secured Notes [Line Items] | ||||||||
Debt instrument face amount | $ 150,000,000 | |||||||
Debt instrument stated interest rate | 100.00% | 7.875% | ||||||
Debt instrument maturity date | Apr. 1, 2019 | |||||||
Proceeds from issuance of senior subordinated notes | $ 146,500,000 | |||||||
Debt instrument interest rate, effective percentage | 8.00% | |||||||
Payments on senior subordinated notes | $ 100 | |||||||
Redemption price for the senior subordinated notes | 10393.80% | |||||||
Redemption date | May 6, 2015 | |||||||
Costs of early extinguishment of debt | $ (5.1) | |||||||
Senior subordinated notes payable, net | $ 50,000,000 | 49,800,000 | ||||||
Total redemption price | 50,600,000 | |||||||
Debt issuance costs | $ 200,000 | |||||||
Write off the remaining issuance costs | $ 100,000 | |||||||
8 7/8% Senior Subordinated Notes Due 2013 | ||||||||
Senior Secured Notes [Line Items] | ||||||||
Debt instrument stated interest rate | 8.875% | |||||||
Debt instrument maturity date | Sep. 15, 2013 | |||||||
Retire senior subordinated notes | $ 150,000,000 |
Equity (Detail)
Equity (Detail) - USD ($) $ in Thousands | Feb. 04, 2018 | Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | Feb. 03, 2018 | |
Equity [Line Items] | |||||||
Beginning Balance | $ 377,550 | $ 377,550 | $ 313,687 | $ 313,687 | |||
Retained earnings adjustment | [1] | (888) | |||||
Comprehensive income | $ (3,926) | $ 2,196 | 5,196 | 14,890 | |||
Share transactions under employee equity compensation plans | 3,011 | 2,695 | |||||
Purchase of treasury stock | (900) | (937) | |||||
Ending Balance | $ 377,550 | $ 384,869 | $ 330,335 | $ 384,869 | $ 330,335 | $ 377,550 | |
[1] | Due to the adoption of Accounting Standards Update No 2014-09, "Revenue from Contracts with Customers (ASC 606)," the opening balance of retained earnings has been reduced by $0.9 million for fiscal year 2018. There was no adjustment made to retained earnings for fiscal 2019. See footnote 2. |
Equity (Parenthetical) (Detail)
Equity (Parenthetical) (Detail) - USD ($) | Feb. 04, 2018 | Aug. 04, 2018 | Feb. 03, 2018 | |
Equity [Line Items] | ||||
Cumulative effect reduction to retained earnings , net of tax | [1] | $ (888,000) | ||
ASU 2014-09 | ||||
Equity [Line Items] | ||||
Cumulative effect reduction to retained earnings , net of tax | $ 900,000 | $ 900,000 | $ 0 | |
[1] | Due to the adoption of Accounting Standards Update No 2014-09, "Revenue from Contracts with Customers (ASC 606)," the opening balance of retained earnings has been reduced by $0.9 million for fiscal year 2018. There was no adjustment made to retained earnings for fiscal 2019. See footnote 2. |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jul. 29, 2017 | Jul. 29, 2017 | Aug. 04, 2018 | |
Equity [Line Items] | |||
Common stock repurchase program, amount authorized | $ 70,000,000 | ||
Treasury stock, shares | 50,000 | 50,000 | |
Purchase of treasury stock | $ 900,000 | $ 937,000 | |
Total purchases under common stock repurchase program | $ 61,700,000 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 04, 2018 | Jul. 29, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ 377,550 | $ 313,687 |
Ending Balance | 384,869 | 330,335 |
Foreign Currency Translation Adjustments, Net | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (6,488) | (9,902) |
Other comprehensive loss (income) before reclassifications | (2,828) | 1,552 |
Ending Balance | (9,316) | (8,350) |
Unrealized (Loss) Gain on Investments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (10) | (12) |
Other comprehensive loss (income) before reclassifications | 10 | 0 |
Ending Balance | 0 | (12) |
Unrealized (Loss) Gain on Forward Contract | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (649) | (181) |
Other comprehensive loss (income) before reclassifications | 773 | (404) |
Amounts reclassified from accumulated other comprehensive loss | 259 | (8) |
Ending Balance | 383 | (593) |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (7,147) | (10,095) |
Other comprehensive loss (income) before reclassifications | (2,045) | 1,148 |
Amounts reclassified from accumulated other comprehensive loss | 259 | (8) |
Ending Balance | $ (8,933) | $ (8,955) |
Summary of Impact on Condensed
Summary of Impact on Condensed Consolidated Statements of Operations Line Items (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of goods sold | $ 123,445 | $ 130,129 | $ 284,812 | $ 281,131 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of goods sold | $ 96 | $ 33 | $ 259 | $ (8) |
Derivative Financial Instrume63
Derivative Financial Instrument - Cash Flow Hedges - Additional Information (Detail) - USD ($) | Aug. 04, 2018 | Aug. 04, 2018 | Feb. 03, 2018 |
Derivative [Line Items] | |||
Cash flow hedge ineffectiveness | $ 0 | ||
Foreign currency forward exchange contract gain (loss) to be reclassified during next 12 months | 400,000 | $ 400,000 | $ (600,000) |
Foreign currency forward exchange contract | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Derivative instrument, hedging percentage | 45.00% | ||
Notional amount outstanding | $ 5,900,000 | $ 5,900,000 | $ 6,000,000 |
Derivative maturity, month and year | 2019-02 |
Fair Value and Balance Sheet Cl
Fair Value and Balance Sheet Classification of Hedging Instruments (Detail) - Foreign currency forward exchange contract - Designated as Hedging Instrument - Level 2 - USD ($) $ in Thousands | Aug. 04, 2018 | Feb. 03, 2018 |
Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative financial instrument, fair value | $ 383 | $ 0 |
Accounts Payable | ||
Derivatives, Fair Value [Line Items] | ||
Derivative financial instrument, fair value | $ 0 | $ 649 |
Summary of Effect and Classific
Summary of Effect and Classification of the Company's Hedging Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Foreign currency forward exchange contract | Designated as Hedging Instrument | Cost of goods sold | Level 2 | ||||
Derivatives, Fair Value [Line Items] | ||||
Loss (gain) reclassified from accumulated other comprehensive loss to income | $ 96 | $ 33 | $ 259 | $ (8) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |
Aug. 04, 2018 | Aug. 04, 2018 | Feb. 03, 2018 | |
Income Tax Disclosure [Line Items] | |||
Unrecognized tax benefits | $ 1,400,000 | ||
Unrecognized tax benefits, interest and penalties | $ 300,000 | ||
Unrecognized tax benefits, increase (decrease) | $ 31,000 | $ 64,000 | |
Increase (decrease) in interest and penalties | 14,000 | 29,000 | |
Deferred Tax Assets, Valuation Allowance against remaining assets | 2,400,000 | 2,400,000 | |
Decrease in valuation allowance | $ (130,000) | $ (244,000) | |
Earliest Tax Year | Internal Revenue Service (IRS) | |||
Income Tax Disclosure [Line Items] | |||
Open tax years | 2,011 | ||
Examination ongoing tax years | 2,011 | ||
Latest Tax Year | Internal Revenue Service (IRS) | |||
Income Tax Disclosure [Line Items] | |||
Open tax years | 2,018 | ||
Examination ongoing tax years | 2,013 |
Stock Options, Stock Apprecia67
Stock Options, Stock Appreciation Rights and Restricted Shares - Additional Information (Detail) | 3 Months Ended | |
Aug. 04, 2018USD ($)Directorshares | May 05, 2018USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of restricted stock vested | 70,191 | 77,453 |
Number of restricted stock tax withholding value | $ | $ 30,000 | $ 300,000 |
Performance Based Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares awarded | 45,093 | |
Fair value of stock granted | $ | $ 1,200,000 | |
Vesting period of awards | 3 years | |
Performance Based Restricted Stock Awards | Second Amended And Restated Long Term Incentive Compensation Plan, 2005 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares awarded | 116,328 | |
Awards expected vesting percentage | 100.00% | |
Award vesting date | 2021-04 | |
Value of award granted | $ | $ 3,100,000 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of restricted stock tax withheld | 1,244 | 9,708 |
Restricted Stock | Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares awarded | 23,844 | |
Fair value of stock granted | $ | $ 700,000 | |
Vesting period of awards | 1 year | |
Number of directors awarded restricted stock | Director | 6 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Aug. 04, 2018Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 4 |
Revenues Generated by Segments
Revenues Generated by Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 199,277 | $ 206,609 | $ 454,511 | $ 448,699 |
Total depreciation and amortization | 3,389 | 3,496 | 6,616 | 6,964 |
Total operating (loss) income | (2,662) | 4,572 | 12,429 | 20,993 |
Costs on early extinguishment of debt | 134 | 0 | 134 | 0 |
Interest expense | 1,328 | 1,869 | 3,337 | 3,825 |
Total net (loss) income before income taxes | (4,124) | 2,703 | 8,958 | 17,168 |
Men's Sportswear and Swim | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 151,111 | 155,466 | 350,717 | 341,332 |
Total depreciation and amortization | 1,997 | 1,786 | 3,836 | 3,637 |
Total operating (loss) income | (3,434) | 3,869 | 9,811 | 19,384 |
Women's Sportswear | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 16,928 | 19,718 | 42,818 | 49,457 |
Total depreciation and amortization | 736 | 866 | 1,482 | 1,661 |
Total operating (loss) income | (3,142) | (3,409) | (6,285) | (4,378) |
Direct-to-Consumer | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 21,299 | 23,210 | 41,238 | 41,428 |
Total depreciation and amortization | 596 | 784 | 1,181 | 1,550 |
Total operating (loss) income | (1,882) | (1,960) | (3,279) | (6,061) |
Licensing | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 9,939 | 8,215 | 19,738 | 16,482 |
Total depreciation and amortization | 60 | 60 | 117 | 116 |
Total operating (loss) income | $ 5,796 | $ 6,072 | $ 12,182 | $ 12,048 |
Revenues From External Customer
Revenues From External Customers Related To Continuing Operations In United States and Foreign Countries (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | $ 199,277 | $ 206,609 | $ 454,511 | $ 448,699 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | 167,482 | 177,816 | 390,074 | 389,888 |
International | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | $ 31,795 | $ 28,793 | $ 64,437 | $ 58,811 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | Aug. 04, 2018 | Feb. 03, 2018 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts of the real estate mortgages | $ 33.2 | $ 33.6 |
Pending Proposed Going Privat72
Pending Proposed Going Private Transaction - Additional Information (Detail) - George Feldenkreis $ / shares in Units, $ in Millions | Jun. 15, 2018USD ($)$ / shares |
Related Party Transaction Due From To Related Party [Line Items] | |
Business acquisition consideration | $ | $ 437 |
Business acquisition share pirce | $ / shares | $ 27.50 |