Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Mar. 23, 2015 | Aug. 02, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | GUESS INC | ||
Trading Symbol | GES | ||
Entity Central Index Key | 912463 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Jan-15 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $1,592,136,393 | ||
Entity Common Stock, Shares Outstanding | 85,368,789 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $483,483 | $502,945 |
Short-term investments | 0 | 5,123 |
Accounts receivable, net | 216,205 | 276,565 |
Inventories | 319,078 | 350,899 |
Deferred tax assets | 19,060 | 24,400 |
Other current assets | 73,533 | 56,154 |
Total current assets | 1,111,359 | 1,216,086 |
Property and equipment, net | 259,524 | 324,606 |
Goodwill | 34,133 | 38,992 |
Other intangible assets, net | 9,745 | 13,143 |
Long-term deferred tax assets | 68,747 | 54,973 |
Other assets | 117,897 | 116,631 |
Total assets | 1,601,405 | 1,764,431 |
Current liabilities: | ||
Current portion of capital lease obligations and borrowings | 1,548 | 4,160 |
Accounts payable | 159,924 | 191,532 |
Accrued expenses | 140,494 | 174,333 |
Total current liabilities | 301,966 | 370,025 |
Capital lease obligations and other long-term debt | 6,165 | 7,580 |
Deferred rent and lease incentives | 81,761 | 90,492 |
Other long-term liabilities | 117,630 | 120,518 |
Total liabilities | 507,522 | 588,615 |
Redeemable noncontrolling interests | 4,437 | 5,830 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity: | ||
Preferred stock, $.01 par value. Authorized 10,000,000 shares; no shares issued and outstanding | 0 | 0 |
Common stock, $.01 par value. Authorized 150,000,000 shares; issued 139,559,000 and 139,245,729 shares, outstanding 85,323,154 and 84,962,345 shares, at January 31, 2015 and February 1, 2014, respectively | 853 | 850 |
Paid-in capital | 453,546 | 439,742 |
Retained earnings | 1,265,524 | 1,247,180 |
Accumulated other comprehensive loss | -127,065 | -13,801 |
Treasury stock, 54,235,846 and 54,283,384 shares at January 31, 2015 and February 1, 2014, respectively | -519,002 | -519,457 |
Guess, Inc. stockholders’ equity | 1,073,856 | 1,154,514 |
Nonredeemable noncontrolling interests | 15,590 | 15,472 |
Total stockholders’ equity | 1,089,446 | 1,169,986 |
Total liabilities and stockholders' equity | $1,601,405 | $1,764,431 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 139,559,000 | 139,245,729 |
Common stock, shares outstanding | 85,323,154 | 84,962,345 |
Treasury stock, shares | 54,235,846 | 54,283,384 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Income Statement [Abstract] | |||
Product sales | $2,306,534 | $2,451,580 | $2,541,463 |
Net royalties | 111,139 | 118,206 | 117,142 |
Net revenue | 2,417,673 | 2,569,786 | 2,658,605 |
Cost of product sales | 1,549,788 | 1,593,652 | 1,591,482 |
Gross profit | 867,885 | 976,134 | 1,067,123 |
Selling, general and administrative expenses | 741,973 | 741,105 | 792,598 |
Restructuring charges | 0 | 12,442 | 0 |
Earnings from operations | 125,912 | 222,587 | 274,525 |
Other income (expense): | |||
Interest expense | -2,370 | -1,923 | -1,640 |
Interest income | 1,438 | 2,015 | 2,016 |
Other income, net | 18,028 | 10,280 | 5,713 |
Total other income | 17,096 | 10,372 | 6,089 |
Earnings before income tax expense | 143,008 | 232,959 | 280,614 |
Income tax expense | 45,824 | 75,248 | 99,128 |
Net earnings | 97,184 | 157,711 | 181,486 |
Net earnings attributable to noncontrolling interests | 2,614 | 4,277 | 2,742 |
Net earnings attributable to Guess, Inc. | $94,570 | $153,434 | $178,744 |
Net earnings per common share attributable to common stockholders (Note 18): | |||
Basic (in dollars per share) | $1.11 | $1.81 | $2.06 |
Diluted (in dollars per share) | $1.11 | $1.80 | $2.05 |
Weighted average common shares outstanding attributable to common stockholders (Note 18): | |||
Basic (in shares) | 84,604 | 84,271 | 86,262 |
Diluted (in shares) | 84,837 | 84,522 | 86,540 |
Dividends declared per common share (in dollars per share) | $0.90 | $0.80 | $2 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $97,184 | $157,711 | $181,486 |
Foreign currency translation adjustment | |||
Gains (losses) arising during the period | -116,707 | -18,642 | 22,347 |
Reclassification to net earnings for losses realized | 0 | 217 | 0 |
Derivative financial instruments designated as cash flow hedges | |||
Gains arising during the period | 7,884 | 4,965 | 2,231 |
Less income tax effect | -1,150 | -873 | -187 |
Reclassification to net earnings for (gains) losses realized | 107 | -3,059 | -9,328 |
Less income tax effect | 429 | 636 | 1,243 |
Marketable securities | |||
Gains (losses) arising during the period | -80 | -11 | 218 |
Less income tax effect | 28 | 4 | -83 |
Reclassification to net earnings for (gains) losses realized | -87 | 0 | 6 |
Less income tax effect | 33 | 0 | -2 |
Defined benefit plans | |||
Plan amendment | 0 | 4,529 | 0 |
Actuarial gain (loss) | -8,966 | 1,751 | 3,508 |
Less income tax effect | 2,610 | -2,465 | -1,342 |
Actuarial loss amortization | 1,002 | 1,108 | 3,340 |
Prior service (credit) cost amortization | -233 | 194 | 620 |
Less income tax effect | -275 | -498 | -1,513 |
Total comprehensive income (loss) | -18,221 | 145,567 | 202,544 |
Less comprehensive income attributable to noncontrolling interests: | |||
Net earnings | 2,614 | 4,277 | 2,742 |
Foreign currency translation adjustment | -2,141 | -804 | 322 |
Amounts attributable to noncontrolling interests | 473 | 3,473 | 3,064 |
Comprehensive income (loss) attributable to Guess, Inc. | ($18,694) | $142,094 | $199,480 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Nonredeemable Noncontrolling Interests |
Balance at Jan. 28, 2012 | $1,194,265,000 | $896,000 | $400,178,000 | $1,155,696,000 | ($23,197,000) | ($357,943,000) | $18,635,000 |
Treasury stock (in shares) at Jan. 28, 2012 | 48,457,693 | ||||||
Common stock (in shares) at Jan. 28, 2012 | 89,631,328 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings | 181,486,000 | 178,744,000 | 2,742,000 | ||||
Foreign currency translation adjustment | 22,347,000 | 22,025,000 | 322,000 | ||||
Gain (loss) on derivative financial instruments designated as cash flow hedges | -6,041,000 | -6,041,000 | |||||
Gain (loss) on marketable securities | 139,000 | 139,000 | |||||
Plan amendment, prior service (credit) cost and actuarial valuation gain (loss) and related amortization on defined benefit plans | 4,613,000 | 4,613,000 | |||||
Issuance of common stock under stock compensation plans including tax effect | 1,362,000 | 7,000 | 1,355,000 | ||||
Issuance of common stock under stock compensation plans (in shares) | 723,061 | ||||||
Issuance of stock under Employee Stock Purchase Plan | 1,186,000 | 750,000 | 436,000 | ||||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 50,013 | -50,013 | |||||
Share-based compensation | 16,285,000 | 16,197,000 | 88,000 | ||||
Dividends | -172,792,000 | -172,792,000 | |||||
Share repurchases | -140,262,000 | -50,000 | 50,000 | -140,262,000 | |||
Share repurchases (in shares) | -5,036,418 | 5,036,418 | |||||
Purchase of redeemable noncontrolling interest | 0 | 4,857,000 | -4,857,000 | ||||
Noncontrolling interest capital contribution | 1,488,000 | 1,488,000 | |||||
Noncontrolling interest capital distribution | -4,237,000 | -4,237,000 | |||||
Redeemable noncontrolling interest redemption value adjustment | 1,029,000 | 1,246,000 | -217,000 | ||||
Balance at Feb. 02, 2013 | 1,100,868,000 | 853,000 | 423,387,000 | 1,162,982,000 | -2,461,000 | -497,769,000 | 13,876,000 |
Treasury stock (in shares) at Feb. 02, 2013 | 53,444,098 | ||||||
Common stock (in shares) at Feb. 02, 2013 | 85,367,984 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings | 157,711,000 | 153,434,000 | 4,277,000 | ||||
Foreign currency translation adjustment | -18,425,000 | -17,621,000 | -804,000 | ||||
Gain (loss) on derivative financial instruments designated as cash flow hedges | 1,669,000 | 1,669,000 | |||||
Gain (loss) on marketable securities | -7,000 | -7,000 | |||||
Plan amendment, prior service (credit) cost and actuarial valuation gain (loss) and related amortization on defined benefit plans | 4,619,000 | 4,619,000 | |||||
Issuance of common stock under stock compensation plans including tax effect | 2,404,000 | 6,000 | 2,398,000 | ||||
Issuance of common stock under stock compensation plans (in shares) | 433,647 | ||||||
Issuance of stock under Employee Stock Purchase Plan | 980,000 | 569,000 | 411,000 | ||||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 43,265 | -43,265 | |||||
Share-based compensation | 13,949,000 | 13,379,000 | 570,000 | ||||
Dividends | -68,215,000 | -68,215,000 | |||||
Share repurchases | -22,099,000 | -9,000 | 9,000 | -22,099,000 | |||
Share repurchases (in shares) | -882,551 | 882,551 | |||||
Noncontrolling interest capital distribution | -1,877,000 | -1,877,000 | |||||
Redeemable noncontrolling interest redemption value adjustment | -1,591,000 | -1,591,000 | |||||
Balance at Feb. 01, 2014 | 1,169,986,000 | 850,000 | 439,742,000 | 1,247,180,000 | -13,801,000 | -519,457,000 | 15,472,000 |
Treasury stock (in shares) at Feb. 01, 2014 | 54,283,384 | 54,283,384 | |||||
Common stock (in shares) at Feb. 01, 2014 | 84,962,345 | 84,962,345 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings | 97,184,000 | 94,570,000 | 2,614,000 | ||||
Foreign currency translation adjustment | -116,707,000 | -114,566,000 | -2,141,000 | ||||
Gain (loss) on derivative financial instruments designated as cash flow hedges | 7,270,000 | 7,270,000 | |||||
Gain (loss) on marketable securities | -106,000 | -106,000 | |||||
Plan amendment, prior service (credit) cost and actuarial valuation gain (loss) and related amortization on defined benefit plans | -5,862,000 | -5,862,000 | |||||
Issuance of common stock under stock compensation plans including tax effect | -1,937,000 | 3,000 | -1,940,000 | ||||
Issuance of common stock under stock compensation plans (in shares) | 313,271 | ||||||
Issuance of stock under Employee Stock Purchase Plan | 1,008,000 | 553,000 | 455,000 | ||||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 47,538 | -47,538 | |||||
Share-based compensation | 15,342,000 | 15,191,000 | 151,000 | ||||
Dividends | -76,982,000 | -76,982,000 | |||||
Noncontrolling interest capital distribution | -355,000 | -355,000 | |||||
Redeemable noncontrolling interest redemption value adjustment | 605,000 | 605,000 | |||||
Balance at Jan. 31, 2015 | $1,089,446,000 | $853,000 | $453,546,000 | $1,265,524,000 | ($127,065,000) | ($519,002,000) | $15,590,000 |
Treasury stock (in shares) at Jan. 31, 2015 | 54,235,846 | 54,235,846 | |||||
Common stock (in shares) at Jan. 31, 2015 | 85,323,154 | 85,323,154 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Cash flows from operating activities: | |||
Net earnings | $97,184 | $157,711 | $181,486 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization of property and equipment | 82,066 | 85,817 | 87,197 |
Amortization of intangible assets | 2,994 | 2,552 | 2,501 |
Share-based compensation expense | 15,342 | 13,949 | 16,285 |
Unrealized forward contract (gains) losses | -7,949 | -562 | 734 |
Deferred income taxes | -7,976 | -17,804 | 7,303 |
Net loss on disposition of property and equipment and long-term assets | 23,690 | 16,337 | 11,096 |
Other items, net | -4,447 | -2,321 | 841 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 31,113 | 38,005 | 28,930 |
Inventories | 2,264 | 17,162 | -30,169 |
Prepaid expenses and other assets | -8,945 | 35,368 | 10,543 |
Accounts payable and accrued expenses | -54,847 | -22,653 | -64,204 |
Deferred rent and lease incentives | -5,683 | -3,616 | 6,426 |
Other long-term liabilities | -10,980 | 7,997 | 9,935 |
Net cash provided by operating activities | 153,826 | 327,942 | 268,904 |
Cash flows from investing activities: | |||
Purchases of property and equipment | -71,498 | -75,438 | -99,591 |
Changes in other assets | 5,298 | 5,761 | -7,642 |
Proceeds from maturity and sale of investments | 5,598 | 6,826 | 9,500 |
Acquisition of businesses, net of cash acquired | -887 | -1,648 | -15,980 |
Net cash settlement of forward contracts | 3,658 | 1,423 | 5,216 |
Purchases of investments | 0 | 0 | -11,765 |
Net cash used in investing activities | -57,831 | -63,076 | -120,262 |
Cash flows from financing activities: | |||
Payment of debt issuance costs | 0 | 0 | -383 |
Proceeds from borrowings | 1,707 | 3,103 | 0 |
Repayment of borrowings and capital lease obligations | -4,561 | -1,474 | -2,296 |
Dividends paid | -77,005 | -68,218 | -172,798 |
Purchase of redeemable noncontrolling interest | 0 | 0 | -4,185 |
Noncontrolling interest capital contributions | 0 | 1,199 | 209 |
Noncontrolling interest capital distributions | -355 | -1,877 | -4,237 |
Issuance of common stock, net of nonvested award repurchases | 87 | 3,861 | 4,367 |
Excess tax benefits from share-based compensation | 440 | 698 | 1,302 |
Purchase of treasury stock | 0 | -22,099 | -140,262 |
Net cash used in financing activities | -79,687 | -84,807 | -318,283 |
Effect of exchange rates on cash and cash equivalents | -35,770 | -6,135 | 6,857 |
Net change in cash and cash equivalents | -19,462 | 173,924 | -162,784 |
Cash and cash equivalents at the beginning of the year | 502,945 | 329,021 | 491,805 |
Cash and cash equivalents at the end of the year | 483,483 | 502,945 | 329,021 |
Supplemental cash flow data: | |||
Interest paid | 1,556 | 1,460 | 841 |
Income taxes paid | $78,122 | $112,996 | $92,401 |
Description_of_the_Business_an
Description of the Business and Summary of Significant Accounting Policies and Practices | 12 Months Ended | |
Jan. 31, 2015 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Description of the Business and Summary of Significant Accounting Policies and Practices | Description of the Business and Summary of Significant Accounting Policies and Practices | |
Description of the Business | ||
Guess?, Inc. (the “Company” or “GUESS?”) designs, markets, distributes and licenses a leading lifestyle collection of contemporary apparel and accessories for men, women and children that reflect the American lifestyle and European fashion sensibilities. The Company’s designs are sold in GUESS? owned stores, to a network of wholesale accounts that includes better department stores, selected specialty retailers and upscale boutiques and through the Internet. GUESS? branded products, some of which are produced under license, are also sold internationally through a series of licensees and distributors. | ||
Fiscal Year | ||
The Company operates on a 52/53-week fiscal year calendar, which ends on the Saturday nearest to January 31 of each year. All references herein to “fiscal 2015,” “fiscal 2014” and “fiscal 2013” represent the results of the 52-week fiscal years ended January 31, 2015 and February 1, 2014 and the 53-week fiscal year ended February 2, 2013, respectively. The additional week in fiscal 2013 occurred during the fourth quarter ended February 2, 2013. References to “fiscal 2016” represent the 52-week fiscal year ending January 30, 2016. | ||
Reclassifications | ||
The Company has made certain reclassifications to the consolidated financial statements and related disclosures for the years ended February 1, 2014 and February 2, 2013 to conform to current period presentation. These reclassifications had no impact on previously reported results from operations or net cash provided by operating activities. | ||
Principles of Consolidation | ||
The consolidated financial statements include the accounts of Guess?, Inc., its wholly-owned direct and indirect subsidiaries and its majority-owned subsidiaries. Accordingly, all references herein to “Guess?, Inc.” include the consolidated results of the Company and its subsidiaries. All intercompany accounts and transactions are eliminated during the consolidation process. | ||
Use of Estimates | ||
The preparation of the financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosed in the accompanying notes. Significant areas requiring the use of management estimates relate to the accounts receivable allowances, sales return allowances, gift card and loyalty accruals, valuation of inventories, share-based compensation, recoverability of deferred taxes, unrecognized tax benefits, the useful life of assets for depreciation and amortization, evaluation of asset impairment, pension obligations, workers compensation and medical self-insurance expense and accruals, litigation reserves and restructuring expense and accruals. Actual results could differ from those estimates. | ||
Business Segment Reporting | ||
Where applicable, the Company reports information about business segments and related disclosures about products and services, geographic areas and major customers. The Company’s businesses are grouped into five reportable segments for management and internal financial reporting purposes: North American Retail, Europe, Asia, North American Wholesale and Licensing. The Company’s operating segments are the same as its reportable segments. Management evaluates segment performance based primarily on revenues and earnings (loss) from operations before restructuring charges, if any. The Company believes this segment reporting reflects how its five business segments are managed and each segment’s performance is evaluated by the Company’s chief operating decision maker to assess performance and make resource allocation decisions. The North American Retail segment includes the Company’s retail and e-commerce operations in North America and its retail operations in Central and South America. The Europe segment includes the Company’s wholesale, retail and e-commerce operations in Europe and the Middle East. The Asia segment includes the Company’s wholesale, retail and e-commerce operations in Asia. The North American Wholesale segment includes the Company’s wholesale operations in North America and Central and South America. The Licensing segment includes the worldwide licensing operations of the Company. The business segment operating results exclude corporate overhead costs, which consist of shared costs of the organization, and restructuring charges. These costs are presented separately and generally include, among other things, the following unallocated corporate costs: accounting and finance, executive compensation, facilities, global advertising and marketing, human resources, information technology and legal. Information regarding these segments is summarized in Note 17. | ||
Revenue Recognition | ||
General | ||
The Company recognizes retail operations revenue at the point of sale and wholesale operations revenue from the sale of merchandise when products are shipped and the customer takes title and assumes risk of loss, collection of the relevant receivable is reasonably assured, pervasive evidence of an arrangement exists, and the sales price is fixed or determinable. Revenue from our e-commerce operations, including shipping fees, is recognized based on the estimated customer receipt date. The Company accrues for estimated sales returns and other allowances in the period in which the related revenue is recognized. To recognize the financial impact of sales returns, the Company estimates the amount of goods that will be returned based on historical experience and reduces sales and cost of sales accordingly. Sales taxes and value added taxes collected from customers and remitted directly to governmental authorities are excluded from net revenues. | ||
Net Royalty Revenue | ||
Royalty revenue is based upon a percentage, as defined in the underlying agreement, of the licensee’s actual net sales or minimum net sales, whichever is greater. The Company may receive special payments in consideration of the grant of license rights. These payments are recognized ratably as revenue over the term of the license agreement. The unrecognized portion of upfront payments is included in deferred royalties in accrued expenses and other long-term liabilities depending on the short or long-term nature of the payments to be recognized. As of January 31, 2015, the Company had $15.1 million and $30.0 million of deferred royalties included in accrued expenses and other long-term liabilities, respectively. This compares to $15.4 million and $44.1 million of deferred royalties included in accrued expenses and other long-term liabilities, respectively, as of February 1, 2014. | ||
Gift Cards | ||
Gift card breakage is income recognized due to the non-redemption of a portion of gift cards sold by the Company for which a liability was recorded in prior periods. Gifts cards are mainly used in the U.S. and Canada. The Company issues gift cards through one of its subsidiaries and is not required by law to escheat the value of unredeemed gift cards to the state in which the subsidiary is domiciled. Estimated breakage amounts are accounted for under the redemption recognition method and are classified as additional net revenues as the gift cards are redeemed. The Company’s gift card breakage rate is approximately 5.7% and 4.7% for the U.S. retail business and Canadian retail business, respectively, based upon historical redemption patterns, which represents the cumulative estimated amount of gift card breakage from the inception of the electronic gift card program in late 2002. Based upon historical redemption trends, the Company recognizes estimated gift card breakage as a component of net revenue in proportion to actual gift card redemptions, over the period that remaining gift card values are redeemed. In fiscal 2015, fiscal 2014 and fiscal 2013, the Company recognized $1.1 million, $0.8 million and $0.5 million of gift card breakage to revenue, respectively. Any future revisions to the estimated breakage rate may result in changes in the amount of breakage income recognized in future periods. | ||
Loyalty Programs | ||
The Company launched customer loyalty programs in North America for its GUESS? factory outlet, G by GUESS, GUESS?, and MARCIANO stores in March 2013, July 2009, August 2008 and September 2007, respectively. The GUESS? factory outlet loyalty program was included in the GUESS? loyalty program since its inception in March 2013. The GUESS? and MARCIANO loyalty programs were merged in May 2009. Under the programs, customers accumulate points based on purchase activity. Once a loyalty program member achieves a certain point level, the member earns awards that may only be redeemed for merchandise. In all of the programs, unredeemed points generally expire after six months without additional purchase activity and unredeemed awards generally expire after two months. The Company uses historical redemption rates to estimate the value of future award redemptions which are accrued in current liabilities and recorded as a reduction of net revenue in the period which the related revenue is recognized. The aggregate dollar value of the loyalty program accruals included in accrued expenses was $4.5 million and $4.2 million as of January 31, 2015 and February 1, 2014, respectively. Future revisions to the estimated liability may result in changes to net revenue. | ||
Classification of Certain Costs and Expenses | ||
The Company includes inbound freight charges, purchasing costs and related overhead, retail store occupancy costs including rent and depreciation and a portion of the Company’s distribution costs related to its retail business in cost of product sales. Distribution costs related primarily to the wholesale business are included in selling, general and administrative (“SG&A”) expenses and amounted to $28.8 million, $31.7 million and $36.2 million for fiscal 2015, fiscal 2014 and fiscal 2013, respectively. The Company also includes store selling, selling and merchandising, advertising, design and other corporate overhead costs as a component of SG&A expenses. | ||
The Company classifies amounts billed to customers for shipping fees as revenues and classifies costs related to shipping as cost of product sales in the accompanying consolidated statements of income. | ||
Advertising and Marketing Costs | ||
The Company expenses the cost of advertising as incurred. Advertising and marketing expenses charged to operations for fiscal 2015, fiscal 2014 and fiscal 2013 were $40.0 million, $45.0 million and $59.1 million, respectively. | ||
Share-Based Compensation | ||
The Company recognizes compensation expense for all share-based awards granted based on the grant date fair value. The fair value of each stock option is estimated on the grant date using the Black-Scholes option-pricing model and involves several assumptions, including the risk-free interest rate, expected volatility, dividend yield, expected life and forfeiture rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect for the expected term of the option at the time of grant. The expected volatility is determined based on an average of both historical volatility and implied volatility. Implied volatility is derived from exchange traded options on the Company’s common stock. The expected dividend yield is based on the Company’s history and expectations of dividend payouts. The expected life is determined based on historical trends. The expected forfeiture rate is determined based on historical data. Compensation expense for nonvested stock options and stock awards is recognized on a straight-line basis over the vesting period. | ||
In addition, the Company has granted certain nonvested stock awards/units and stock options that require the recipient to achieve certain minimum performance targets in order for these awards to vest. If the minimum performance targets have not been achieved or are not expected to be achieved, no expense is recognized during the period. | ||
Foreign Currency | ||
Foreign Currency Translation Adjustment | ||
The local selling currency is typically the functional currency for all of the Company’s significant international operations. In accordance with authoritative guidance, assets and liabilities of the Company’s foreign operations are translated from foreign currencies into U.S. dollars at period-end rates, while income and expenses are translated at the weighted average exchange rates for the period. The related translation adjustments are reflected as a foreign currency translation adjustment in accumulated other comprehensive income (loss) within stockholders’ equity. In addition, the Company records foreign currency translation adjustments related to its noncontrolling interests within stockholders’ equity. Periodically, the Company may also use foreign currency forward contracts to hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries (see below). Changes in the fair values of these foreign currency forward contracts, designated as net investment hedges, are recorded in foreign currency translation adjustment as a component of accumulated other comprehensive income (loss) within stockholders’ equity. The total foreign currency translation adjustment decreased stockholders’ equity by $116.7 million, from an accumulated foreign currency translation loss of $7.7 million as of February 1, 2014 to an accumulated foreign currency translation loss of $124.4 million as of January 31, 2015. | ||
Foreign Currency Transaction Gains and Losses | ||
Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency, including gains and losses on foreign currency contracts (see below), are included in the consolidated statements of income. Net foreign currency transaction gains included in the determination of net earnings were $13.8 million, $6.3 million and $8.6 million for fiscal 2015, fiscal 2014 and fiscal 2013, respectively. | ||
Forward Contracts Designated as Hedging Instruments | ||
The Company operates in foreign countries, which exposes it to market risk associated with foreign currency exchange rate fluctuations. Various transactions that occur primarily in Europe, Canada, South Korea and Mexico are denominated in U.S. dollars and British pounds and thus are exposed to earnings risk as a result of exchange rate fluctuations when converted to their functional currencies. These types of transactions include U.S. dollar denominated purchases of merchandise and U.S. dollar and British pound denominated intercompany liabilities. In addition, certain operating expenses, tax liabilities and pension-related liabilities are denominated in Swiss francs and are exposed to earnings risk as a result of exchange rate fluctuations when converted to the functional currency. The Company has entered into certain forward contracts to hedge the risk of a portion of these anticipated foreign currency transactions against foreign currency rate fluctuations. The Company has elected to apply the hedge accounting rules in accordance with authoritative guidance for certain of these hedges. The Company does not hedge all transactions denominated in foreign currency. The Company may also hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries. | ||
Changes in the fair value of the U.S. dollar/euro and U.S. dollar/Canadian dollar forward contracts for anticipated U.S. dollar merchandise purchases designated as cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in cost of product sales in the period which approximates the time the hedged merchandise inventory is sold. Changes in the fair value of U.S. dollar/euro forward contracts for U.S. dollar intercompany royalties designated as cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in other income and expense in the period in which the royalty expense is incurred. Changes in the fair value of any U.S. dollar/euro dollar forward contracts designated as net investment hedges are recorded in foreign currency translation adjustment as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are not recognized in earnings until the sale or liquidation of the hedged net investment. | ||
Forward Contracts Not Designated as Hedging Instruments | ||
The Company also has forward contracts that are not designated as hedging instruments for accounting purposes. Changes in fair value of forward contracts not designated as hedging instruments are reported in net earnings as part of other income and expense. | ||
Income Taxes | ||
The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred income taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. | ||
The Company accounts for uncertainty in income taxes in accordance with authoritative guidance, which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company also follows authoritative guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. | ||
Earnings Per Share | ||
Basic earnings per share represents net earnings attributable to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share represents net earnings attributable to common stockholders divided by the weighted average number of common shares outstanding, inclusive of the dilutive impact of common equivalent shares outstanding during the period. However, nonvested restricted stock awards (referred to as participating securities) are excluded from the dilutive impact of common equivalent shares outstanding in accordance with authoritative guidance under the two-class method since the nonvested restricted stockholders are entitled to participate in dividends declared on common stock as if the shares were fully vested and hence are deemed to be participating securities. Under the two-class method, earnings attributable to nonvested restricted stockholders are excluded from net earnings attributable to common stockholders for purposes of calculating basic and diluted earnings per common share. However, net losses are not allocated to nonvested restricted stockholders since they are not contractually obligated to share in the losses of the Company. | ||
Comprehensive Income (Loss) | ||
Comprehensive income (loss) consists of net earnings, foreign currency translation adjustments, the effective portion of the change in the fair value of cash flow hedges, unrealized gains or losses on available-for-sale securities and defined benefit plan impact from plan amendment, prior service credit or cost amortization and actuarial valuation gains or losses and related amortization. Comprehensive income (loss) is presented in the consolidated statements of comprehensive income (loss). | ||
Cash and Cash Equivalents | ||
Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. | ||
Investment Securities | ||
The Company accounts for its investment securities in accordance with authoritative guidance which requires investments to be classified into one of three categories based on management’s intent: held-to-maturity securities, available-for-sale securities and trading securities. Held-to-maturity securities are recorded at their amortized cost. Available-for-sale securities are recorded at fair value with unrealized gains and losses reported as a separate component of stockholders’ equity. Trading securities are recorded at market value with unrealized gains and losses reported in net earnings. The appropriate classification of investment securities is determined at the time of purchase and reevaluated at each balance sheet date. The Company currently accounts for its investment securities as available-for-sale. There were minimal investment securities included in other assets in the Company’s consolidated balance sheet as of January 31, 2015. | ||
The Company periodically evaluates investment securities for impairment using both qualitative and quantitative criteria such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and the Company’s ability and intent to hold the investment for a period of time which may be sufficient for anticipated recovery in market value. | ||
Concentration of Credit and Liquidity Risk | ||
Cash used primarily for working capital purposes is maintained with various major financial institutions. The Company performs evaluations of the relative credit standing of these financial institutions in order to limit the amount of asset and liquidity exposure with any institution. Excess cash and cash equivalents, which represent the majority of the Company’s outstanding cash and cash equivalents balance, are held primarily in overnight deposit and short-term time deposit accounts and three diversified money market funds. The money market funds are AAA rated by national credit rating agencies and are generally comprised of high-quality, liquid investments. | ||
The Company is also exposed to concentrations of credit risk through its accounts receivable balances. The Company extends credit to corporate customers based upon an evaluation of the customer’s financial condition and credit history and generally requires no collateral but does obtain credit insurance when considered appropriate. As of January 31, 2015, approximately 53% of the Company’s total net trade accounts receivable and 66% of its European net trade receivables were subject to credit insurance coverage, certain bank guarantees or letters of credit for collection purposes. The Company’s credit insurance coverage contains certain terms and conditions specifying deductibles and annual claim limits. The Company maintains allowances for doubtful accounts for estimated losses that result from the inability of its wholesale customers to make their required payments. The Company bases its allowances on analysis of the aging of accounts receivable at the date of the financial statements, assessments of historical collection trends, an evaluation of the impact of current economic conditions and whether the Company has obtained credit insurance or other guarantees. The Company’s corporate customers are principally located throughout Europe, North America and Asia, and their ability to pay amounts due to the Company may be dependent on the prevailing economic conditions of their geographic region. However, such credit risk is considered limited due to the Company’s large customer base. Management performs regular evaluations concerning the ability of its customers to satisfy their obligations and records a provision for doubtful accounts based on these evaluations. The Company’s credit losses for the periods presented were immaterial and did not significantly exceed management’s estimates. The Company’s two largest wholesale customers accounted for approximately 3.6%, 3.3% and 3.5% of the Company’s consolidated net revenue in fiscal 2015, fiscal 2014 and fiscal 2013, respectively. | ||
Inventories | ||
Inventories are valued at the lower of cost (primarily weighted average method) or market. The Company continually evaluates its inventories by assessing slow moving product as well as prior seasons’ inventory. Market value of aged inventory is estimated based on historical sales trends for each product line category, the impact of market trends, an evaluation of economic conditions, available liquidation channels and the value of current orders relating to the future sales of this type of inventory. | ||
Depreciation and Amortization | ||
Depreciation and amortization of property and equipment, which includes depreciation of the property under the capital lease, and purchased intangibles are provided using the straight-line method over the following useful lives: | ||
Building and building improvements including properties under capital lease | 10 to 33 years | |
Land improvements | 5 years | |
Furniture, fixtures and equipment | 2 to 10 years | |
Purchased intangibles | 4 to 20 years | |
Leasehold improvements are amortized over the lesser of the estimated useful life of the asset or the term of the lease, unless the renewal is reasonably assured. Construction in progress is not depreciated until the related asset is completed and placed in service. | ||
Long-Lived Assets | ||
Long-lived assets, such as property and equipment, and purchased intangibles subject to amortization, are reviewed for impairment quarterly or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company considers each individual store or concession as an asset group for impairment testing, which is the lowest level at which individual cash flows can be identified. The asset group includes leasehold improvements, furniture, fixtures and equipment, computer hardware and software and certain long-term security deposits and lease acquisition costs. The Company reviews retail locations in penetrated markets for impairment risk once the locations have been opened for at least one year in their current condition, or sooner as changes in circumstances require. The Company believes that waiting one year allows a store or concession to reach a maturity level where a more comprehensive analysis of financial performance can be performed. The Company evaluates impairment risk for retail locations in new markets, where the Company is in the early stages of establishing its presence, once the locations have been opened for at least two years. The Company believes that waiting two years allows for brand awareness to be established. The Company also evaluates impairment risk for retail locations that are expected to be closed in the foreseeable future. | ||
An asset is considered to be impaired if the Company determines that the carrying value may not be recoverable based upon its assessment of the asset’s ability to continue to generate earnings from operations and positive cash flow in future periods or if significant changes in the Company’s strategic business objectives and utilization of the assets occurred. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the estimated fair value, which is determined based on discounted future cash flows. The impairment loss calculations require management to apply judgment in estimating future cash flows and the discount rates that reflect the risk inherent in future cash flows. Future expected cash flows for store and concession assets are based on management’s estimates of future cash flows over the remaining lease period or expected life, if shorter. For expected store and concession closures, the Company will evaluate whether it is necessary to shorten the useful life for any of the assets within the respective asset group. The Company will use this revised useful life when estimating the asset group’s future cash flows. The Company considers historical trends, expected future business trends and other factors when estimating the future cash flow for each retail location. The Company also considers factors such as: the local environment for each retail location, including mall traffic and competition; the Company’s ability to successfully implement strategic initiatives; and the ability to control variable costs such as cost of sales and payroll and, in some cases, renegotiate lease costs. The estimated cash flows used for this nonrecurring fair value measurement are considered a Level 3 input as defined in Note 20. If actual results are not consistent with the assumptions and judgments used in estimating future cash flows and asset fair values, there may be additional exposure to future impairment losses that could be material to the Company’s results of operations. | ||
See Note 5 for further details on asset impairments. | ||
Goodwill | ||
Goodwill is tested annually for impairment or more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. This determination is made at the reporting unit level which may be either an operating segment or one level below an operating segment if discrete financial information is available. Two or more reporting units within an operating segment may be aggregated for impairment testing if they have similar economic characteristics. The Company has identified its North American Retail and North American Wholesale segments and its European wholesale and European retail components of its Europe segment as separate reporting units for goodwill impairment testing since each have different economic characteristics. In accordance with authoritative guidance, the Company first assesses qualitative factors relevant in determining whether it is more likely than not that the fair value of its reporting units are less than their carrying amounts. Based on this analysis, the Company determines whether it is necessary to perform a quantitative impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the amount of any impairment loss to be recognized for that reporting unit is determined using two steps. First, the Company determines the fair value of the reporting unit using a discounted cash flow analysis, which requires unobservable inputs (Level 3) within the fair value hierarchy as defined in Note 20. These inputs include selection of an appropriate discount rate and the amount and timing of expected future cash flows. Second, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill and other intangibles over the implied fair value. The implied fair value is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation, in accordance with authoritative guidance. | ||
Defined Benefit Plans | ||
In accordance with authoritative guidance for defined benefit pension and other postretirement plans, an asset for a plan’s overfunded status or a liability for a plan’s underfunded status is recognized in the consolidated balance sheets; plan assets and obligations that determine the plan’s funded status are measured as of the end of the Company’s fiscal year; and changes in the funded status of defined benefit postretirement plans are recognized in the year in which they occur. Such changes are reported in other comprehensive income (loss) and as a separate component of stockholders’ equity. | ||
The Company’s pension obligations and related costs are calculated using actuarial concepts, within the authoritative guidance framework, and are considered Level 3 inputs as defined in Note 20. The life expectancy, estimated retirement age, discount rate, estimated future compensation and expected return on plan assets are important elements of expense and/or liability measurement. These critical assumptions are evaluated annually which enables expected future payments for benefits to be stated at present value on the measurement date. If actual results are not consistent with actuarial assumptions, the amounts recognized for the defined benefit plans could change significantly. | ||
Deferred Rent and Lease Incentives | ||
When a lease includes lease incentives (such as a rent holiday) or requires fixed escalations of the minimum lease payments, rental expense is recognized on a straight-line basis over the term of the lease and the difference between the average rental amount charged to expense and amounts payable under the lease is included in deferred rent and lease incentives in the accompanying consolidated balance sheets. For construction allowances, the Company records a deferred lease credit on the consolidated balance sheets and amortizes the deferred lease credit as a reduction of rent expense in the consolidated statements of income over the term of the leases. | ||
Litigation Reserves | ||
Estimated amounts for claims that are probable and can be reasonably estimated are recorded as liabilities in the consolidated balance sheets. The likelihood of a material change in these estimated reserves would be dependent on new claims as they may arise and the expected probable favorable or unfavorable outcome of each claim. As additional information becomes available, the Company assesses the potential liability related to new claims and existing claims and revises estimates as appropriate. As new claims arise or existing claims evolve, such revisions in estimates of the potential liability could materially impact the results of operations and financial position. |
New_Accounting_Guidance
New Accounting Guidance | 12 Months Ended |
Jan. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Guidance | New Accounting Guidance |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which requires that an unrecognized tax benefit be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar loss or a tax credit carryforward, if specific criteria are met. The Company adopted this guidance effective February 2, 2014. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | |
In April 2014, the FASB issued authoritative guidance which raises the threshold for disposals to qualify as discontinued operations. Under this new guidance, a discontinued operation is (1) a component of an entity or group of components that have been disposed of or are classified as held for sale and represent a strategic shift that has or will have a major effect on an entity’s operations and financial results, or (2) an acquired business that is classified as held for sale on the acquisition date. This guidance also requires expanded or new disclosures for discontinued operations, individually material disposals that do not meet the definition of a discontinued operation, an entity’s continuing involvement with a discontinued operation following disposal and retained equity method investments in a discontinued operation. This guidance is effective for fiscal periods beginning after December 15, 2014, which will be the Company’s first quarter of fiscal 2016. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements unless the Company disposes of a business that meets the updated definition of discontinued operations. | |
In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2016, which will be the Company’s first quarter of fiscal 2018, and allows for either full retrospective or modified retrospective adoption. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. | |
In August 2014, the FASB issued authoritative guidance that requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern and requires additional disclosures if certain criteria are met. This guidance is effective for fiscal periods ending after December 15, 2016, which will be the Company’s fourth quarter of fiscal 2017, with early adoption permitted. The adoption of this guidance is not expected to impact the Company’s consolidated financial statements or related disclosures. | |
In February 2015, the FASB issued authoritative guidance which modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. This guidance is effective for fiscal periods beginning after December 15, 2015, which will be the Company’s first quarter of fiscal 2017, and allows for either full retrospective or modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. |
Accounts_Receivable
Accounts Receivable | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Accounts Receivable | Accounts Receivable | |||||||
Accounts receivable is summarized as follows (in thousands): | ||||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||
Trade | $ | 232,768 | $ | 291,411 | ||||
Royalty | 10,118 | 16,372 | ||||||
Other | 5,239 | 8,174 | ||||||
248,125 | 315,957 | |||||||
Less allowance for doubtful accounts | 31,920 | 39,392 | ||||||
$ | 216,205 | $ | 276,565 | |||||
Accounts receivable consists of trade receivables relating primarily to the Company’s wholesale business in Europe, and to a lesser extent, to its wholesale businesses in North America and Asia, and royalty receivables relating to its licensing operations. The accounts receivable allowance includes allowances for doubtful accounts, wholesale sales returns and wholesale markdowns. Retail sales returns allowances are included in accrued expenses. |
Inventories
Inventories | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories consist of the following (in thousands): | ||||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||
Raw materials | $ | 4,548 | $ | 10,585 | ||||
Work in progress | 77 | 977 | ||||||
Finished goods | 314,453 | 339,337 | ||||||
$ | 319,078 | $ | 350,899 | |||||
As of January 31, 2015 and February 1, 2014, the Company had an allowance to write down inventories to the lower of cost or market of $19.7 million and $23.4 million, respectively. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment | Property and Equipment | |||||||
Property and equipment is summarized as follows (in thousands): | ||||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||
Land and land improvements | $ | 2,866 | $ | 2,866 | ||||
Building and building improvements | 3,471 | 4,063 | ||||||
Leasehold improvements | 386,374 | 409,582 | ||||||
Furniture, fixtures and equipment | 356,960 | 383,127 | ||||||
Construction in progress | 11,417 | 9,706 | ||||||
Properties under capital lease | 19,190 | 22,931 | ||||||
780,278 | 832,275 | |||||||
Less accumulated depreciation and amortization | 520,754 | 507,669 | ||||||
$ | 259,524 | $ | 324,606 | |||||
Construction in progress represents the costs associated with the construction in progress of leasehold improvements to be used in the Company’s operations, primarily for new and remodeled stores in retail operations. No interest costs were capitalized related to construction in progress during fiscal 2015, fiscal 2014 and fiscal 2013. | ||||||||
The accumulated depreciation and amortization related to the property under the capital lease was approximately $5.8 million and $6.1 million as of January 31, 2015 and February 1, 2014, respectively, and was included in depreciation expense when recognized. See Notes 8 and 14 for information regarding the associated capital lease obligations. | ||||||||
Impairment | ||||||||
The Company recorded impairment charges of $24.8 million, $8.8 million and $10.1 million for fiscal 2015, fiscal 2014 and fiscal 2013, respectively, related primarily to the impairment of certain under-performing retail stores and expected store closures in North America and Europe. These impairment charges, which exclude impairment charges incurred during fiscal 2014 related to restructuring activities, were included in SG&A expenses in the Company’s consolidated statements of income for each of the respective periods. Refer to Note 9 for more information regarding impairment charges related to restructuring activities. | ||||||||
Impairments to long-lived assets, excluding impairment charges related to restructuring activities during fiscal 2014, are summarized as follows (in thousands): | ||||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||
Aggregate carrying value of all long-lived assets impaired | $ | 26,106 | $ | 8,928 | ||||
Less impairment charges | 24,766 | 8,821 | ||||||
Aggregate remaining fair value of all long-lived assets impaired | $ | 1,340 | $ | 107 | ||||
The Company’s impairment evaluations included testing of 179 stores and concessions during fiscal 2015 and 90 stores during fiscal 2014, which were deemed to have impairment indicators. The Company concluded that 139 stores and concessions, and 31 stores, respectively, were determined to be impaired, as the carrying amounts of the assets exceeded their estimated fair values (determined based on discounted cash flows) at each of the respective dates. Refer to Note 1 for a description of other assumptions that management considers in estimating the future discounted cash flows. If actual results are not consistent with the assumptions and judgments used in estimating future cash flows and asset fair values, there may be additional exposure to future impairment losses that could be material to the Company’s results of operations. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |||||||||||||||
Goodwill activity is summarized by business segment as follows (in thousands): | ||||||||||||||||
North American | Europe | North American | Total | |||||||||||||
Retail | Wholesale | |||||||||||||||
Goodwill balance at February 2, 2013 | $ | 1,925 | $ | 27,362 | $ | 10,000 | $ | 39,287 | ||||||||
Adjustments: | ||||||||||||||||
Translation Adjustments | (85 | ) | (195 | ) | (15 | ) | (295 | ) | ||||||||
Goodwill balance at February 1, 2014 | 1,840 | 27,167 | 9,985 | 38,992 | ||||||||||||
Adjustments: | ||||||||||||||||
Disposal | — | (113 | ) | — | (113 | ) | ||||||||||
Translation Adjustments | (91 | ) | (4,639 | ) | (16 | ) | (4,746 | ) | ||||||||
Goodwill balance at January 31, 2015 | $ | 1,749 | $ | 22,415 | $ | 9,969 | $ | 34,133 | ||||||||
The Company has no accumulated impairment related to goodwill. | ||||||||||||||||
Other intangible assets as of January 31, 2015 consisted primarily of lease and license acquisition costs related to European acquisitions. Gross intangible assets were $32.0 million and $37.7 million as of January 31, 2015 and February 1, 2014, respectively. The accumulated amortization of intangible assets with finite useful lives was $22.3 million and $24.6 million as of January 31, 2015 and February 1, 2014, respectively. For these assets, amortization expense over the next five years is expected to be approximately $2.0 million in fiscal 2016, $1.6 million in fiscal 2017, $1.3 million in fiscal 2018, $1.0 million in fiscal 2019 and $0.7 million in fiscal 2020. |
Accrued_Expenses
Accrued Expenses | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued Expenses | Accrued Expenses | |||||||
Accrued expenses are summarized as follows (in thousands): | ||||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||
Accrued compensation and benefits | $ | 55,775 | $ | 68,354 | ||||
Sales and use taxes, property taxes and other indirect taxes | 20,874 | 23,126 | ||||||
Deferred royalties and other revenue | 15,490 | 15,787 | ||||||
Store credits, loyalty and gift cards | 9,745 | 9,738 | ||||||
Advertising | 9,368 | 7,853 | ||||||
Construction costs | 5,376 | 3,714 | ||||||
Professional fees | 4,988 | 5,871 | ||||||
Accrued rent | 2,378 | 9,607 | ||||||
Restructuring charges | 276 | 4,578 | ||||||
Income taxes | — | 11,823 | ||||||
Derivative financial instruments | — | 1,712 | ||||||
Other | 16,224 | 12,170 | ||||||
$ | 140,494 | $ | 174,333 | |||||
Borrowings_and_Capital_Lease_O
Borrowings and Capital Lease Obligations | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Borrowings and Capital Lease Obligations | Borrowings and Capital Lease Obligations | |||||||||||
Borrowings and capital lease obligations are summarized as follows (in thousands): | ||||||||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||||||
European capital lease, maturing quarterly through calendar 2016 | $ | 5,745 | $ | 8,637 | ||||||||
Other | 1,968 | 3,103 | ||||||||||
7,713 | 11,740 | |||||||||||
Less current installments | 1,548 | 4,160 | ||||||||||
Long-term capital lease obligations and other debt | $ | 6,165 | $ | 7,580 | ||||||||
Capital Lease | ||||||||||||
The Company entered into a capital lease in December 2005 for a building in Florence, Italy. As of January 31, 2015, the capital lease obligation was $5.7 million. The Company entered into a separate interest rate swap agreement designated as a non-hedging instrument that resulted in a swap fixed rate of 3.55%. This interest rate swap agreement matures on February 1, 2016 and converts the nature of the capital lease obligation from Euribor floating-rate debt to fixed-rate debt. The fair value of the interest rate swap liability as of January 31, 2015 was approximately $0.3 million. | ||||||||||||
Credit Facilities | ||||||||||||
On July 6, 2011, the Company entered into a five-year senior secured revolving credit facility with JPMorgan Chase Bank, N.A., Bank of America, N.A. and the other lenders party thereto (the “Credit Facility”) which provided for a $200 million revolving multicurrency line of credit. The Credit Facility is available for direct borrowings and the issuance of letters of credit, subject to certain letters of credit sublimits. It may be used for working capital and other general corporate purposes. | ||||||||||||
On August 31, 2012, the Company increased its borrowing capacity under the Credit Facility from $200 million to $300 million by exercising the accordion feature in the Credit Facility pursuant to a Lender Joinder Agreement with the lenders party thereto. Also on August 31, 2012, the Company entered into an Amendment to the Credit Facility with the lenders party thereto to provide for (i) greater flexibility in certain of the Company’s covenants under the Credit Facility and (ii) access to a new $100 million accordion feature, subject to certain conditions and the willingness of existing or new lenders to assume such increased amount. | ||||||||||||
All obligations under the Credit Facility are unconditionally guaranteed by certain of the Company’s domestic subsidiaries and are secured by substantially all of the personal assets of the Company and such domestic subsidiaries, including a pledge of 65% of the equity interests of certain of the Company’s foreign subsidiaries. | ||||||||||||
Direct borrowings under the Credit Facility will be made, at the Company’s option, as (a) Eurodollar Rate Loans, which shall bear interest at the published LIBOR rate for the respective interest period plus an applicable margin (varying from 1.15% to 1.65%) based on the Company’s leverage ratio at the time, or (b) Base Rate Loans, which shall bear interest at the higher of (i) 0.50% in excess of the federal funds rate, (ii) the rate of interest as announced by JP Morgan as its “prime rate,” or (iii) 1.0% in excess of the one month adjusted LIBOR rate, plus an applicable margin (varying from 0.15% to 0.65%) based on the Company’s leverage ratio at the time. The Company is also obligated to pay certain commitment, letter of credit and other fees customary for a credit facility of this size and type. As of January 31, 2015, the Company had $1.7 million in outstanding standby letters of credit, no outstanding documentary letters of credit and no outstanding borrowings under the Credit Facility. | ||||||||||||
The Credit Facility requires the Company to comply with a leverage ratio and a fixed charge coverage ratio. In addition, the Credit Facility contains customary covenants, including covenants that limit or restrict the Company and its subsidiaries’ ability to: incur liens, incur indebtedness, make investments, dispose of assets, make certain restricted payments, merge or consolidate and enter into certain transactions with affiliates. The Credit Facility also limits the Company’s ability to pay dividends unless, among other factors, immediately after giving effect thereto the aggregate amount of unrestricted cash and cash equivalents held by Guess?, Inc. and its domestic subsidiaries is at least $50 million. The Company may need to borrow against this facility periodically to ensure it will continue to meet the requirements of this covenant. Upon the occurrence of an event of default under the Credit Facility, the lenders may cease making loans, terminate the Credit Facility and declare all amounts outstanding to be immediately due and payable. The Credit Facility specifies a number of events of default (some of which are subject to applicable grace or cure periods), including, among other things, non-payment defaults, covenant defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency defaults and material judgment defaults. The Credit Facility allows for both secured and unsecured borrowings outside of the Credit Facility up to specified amounts. | ||||||||||||
The Company, through its European subsidiaries, maintains short-term uncommitted borrowing agreements, primarily for working capital purposes, with various banks in Europe. The majority of the borrowings under these agreements are secured by specific accounts receivable balances. Based on the applicable accounts receivable balances as of January 31, 2015, the Company could have borrowed up to $99.4 million under these agreements. As of January 31, 2015, the Company had no outstanding borrowings and $0.7 million in outstanding documentary letters of credit under these agreements. The agreements are denominated primarily in euros and provide for annual interest rates ranging from 0.3% to 6.8%. The maturities of any short-term borrowings under these arrangements are generally linked to the credit terms of the underlying accounts receivable that secure the borrowings. With the exception of one facility for up to $39.5 million that has a minimum net equity requirement, there are no other financial ratio covenants. | ||||||||||||
Other | ||||||||||||
From time-to-time, the Company will obtain other financing in foreign countries for working capital to finance its local operations. | ||||||||||||
Maturities of capital lease obligations and debt as of January 31, 2015 are as follows (in thousands): | ||||||||||||
Capital Lease | Debt | Total | ||||||||||
Fiscal 2016 | $ | 1,548 | $ | — | $ | 1,548 | ||||||
Fiscal 2017 | 4,197 | — | 4,197 | |||||||||
Fiscal 2018 | — | — | — | |||||||||
Fiscal 2019 | — | 626 | 626 | |||||||||
Fiscal 2020 | — | 1,342 | 1,342 | |||||||||
Thereafter | — | — | — | |||||||||
Total | $ | 5,745 | $ | 1,968 | $ | 7,713 | ||||||
Restructuring_Charges
Restructuring Charges | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Restructuring Charges [Abstract] | ||||||||||||
Restructuring Charges | Restructuring Charges | |||||||||||
During the first quarter of fiscal 2014, the Company implemented plans to streamline its structure and reduce expenses in both Europe and North America. During the second quarter of fiscal 2014, the Company expanded these plans to include the consolidation and streamlining of certain operations in Europe and Asia. There were no restructuring charges incurred during fiscal 2015 as the actions under these plans were substantially completed during fiscal 2014. The Company does not expect significant future cash-related charges to be incurred during fiscal 2016 as a result of these plans. During fiscal 2014, the Company incurred restructuring charges of $12.4 million related primarily to severance, impairment and lease termination costs. As of January 31, 2015, the Company had a balance of approximately $0.3 million in accrued expenses for amounts expected to be paid during fiscal 2016. At February 1, 2014, the Company had a balance of approximately $4.6 million in accrued expenses related to these restructuring activities. | ||||||||||||
The following table summarizes the components of the restructuring activities for fiscal 2015 and fiscal 2014 (in thousands): | ||||||||||||
Severance | Impairment and Lease Termination | Total | ||||||||||
Balance at February 2, 2013 | $ | — | $ | — | $ | — | ||||||
Charges to operations | 9,206 | 3,236 | 12,442 | |||||||||
Non-cash write-offs | — | (1,717 | ) | (1,717 | ) | |||||||
Cash payments | (4,567 | ) | (1,492 | ) | (6,059 | ) | ||||||
Foreign currency and other adjustments | (61 | ) | (27 | ) | (88 | ) | ||||||
Balance at February 1, 2014 | $ | 4,578 | $ | — | $ | 4,578 | ||||||
Cash payments | (2,952 | ) | — | (2,952 | ) | |||||||
Foreign currency and other adjustments | (1,350 | ) | — | (1,350 | ) | |||||||
Balance at January 31, 2015 | $ | 276 | $ | — | $ | 276 | ||||||
Comprehensive_Income_Loss
Comprehensive Income (Loss) | 12 Months Ended | |||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||
Comprehensive Income (Loss) | Comprehensive Income (Loss) | |||||||||||||||||||
The changes in accumulated other comprehensive income (loss), net of related income taxes, for fiscal 2015 and fiscal 2014 are as follows (in thousands): | ||||||||||||||||||||
Foreign Currency Translation Adjustment | Derivative Financial Instruments Designated as Cash Flow Hedges | Marketable Securities | Defined Benefit Plans | Total | ||||||||||||||||
Balance at February 2, 2013 | $ | 10,618 | $ | (1,782 | ) | $ | 110 | $ | (11,407 | ) | $ | (2,461 | ) | |||||||
Gains (losses) arising during the period | (17,838 | ) | 4,092 | (7 | ) | 3,815 | (9,938 | ) | ||||||||||||
Reclassification to net earnings for (gains) losses realized | 217 | (2,423 | ) | — | 804 | (1,402 | ) | |||||||||||||
Net other comprehensive income (loss) | (17,621 | ) | 1,669 | (7 | ) | 4,619 | (11,340 | ) | ||||||||||||
Balance at February 1, 2014 | $ | (7,003 | ) | $ | (113 | ) | $ | 103 | $ | (6,788 | ) | $ | (13,801 | ) | ||||||
Gains (losses) arising during the period | (114,566 | ) | 6,734 | (52 | ) | (6,356 | ) | (114,240 | ) | |||||||||||
Reclassification to net earnings for (gains) losses realized | — | 536 | (54 | ) | 494 | 976 | ||||||||||||||
Net other comprehensive income (loss) | (114,566 | ) | 7,270 | (106 | ) | (5,862 | ) | (113,264 | ) | |||||||||||
Balance at January 31, 2015 | $ | (121,569 | ) | $ | 7,157 | $ | (3 | ) | $ | (12,650 | ) | $ | (127,065 | ) | ||||||
Details on reclassifications out of accumulated other comprehensive income (loss) to net earnings during fiscal 2015 and fiscal 2014 are as follows (in thousands): | ||||||||||||||||||||
Location of (Gain) Loss | ||||||||||||||||||||
Reclassified from | ||||||||||||||||||||
Accumulated OCI | ||||||||||||||||||||
Year Ended | Year Ended | into Earnings | ||||||||||||||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||||||||||||||
Foreign currency translation adjustment: | ||||||||||||||||||||
Liquidation of investment in a foreign entity | $ | — | $ | 217 | Restructuring charges | |||||||||||||||
— | 217 | |||||||||||||||||||
Derivative financial instruments designated as cash flow hedges: | ||||||||||||||||||||
Foreign exchange currency contracts | 272 | (3,050 | ) | Cost of sales | ||||||||||||||||
Foreign exchange currency contracts | (165 | ) | (9 | ) | Other income/expense | |||||||||||||||
Less income tax effect | 429 | 636 | Income tax expense | |||||||||||||||||
536 | (2,423 | ) | ||||||||||||||||||
Marketable securities: | ||||||||||||||||||||
Available-for-sale securities | (87 | ) | — | Other income/expense | ||||||||||||||||
Less income tax effect | 33 | — | Income tax expense | |||||||||||||||||
(54 | ) | — | ||||||||||||||||||
Defined benefit plans: | ||||||||||||||||||||
Actuarial loss amortization | 1,002 | 1,108 | (1) | |||||||||||||||||
Prior service (credit) cost amortization | (233 | ) | 194 | (1) | ||||||||||||||||
Less income tax effect | (275 | ) | (498 | ) | Income tax expense | |||||||||||||||
494 | 804 | |||||||||||||||||||
Total reclassifications during the period | $ | 976 | $ | (1,402 | ) | |||||||||||||||
________________________________________________________________________ | ||||||||||||||||||||
-1 | These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. Refer to Note 12 for further information. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
Income tax expense (benefit) is summarized as follows (in thousands): | ||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Federal: | ||||||||||||
Current | $ | 37,802 | $ | 61,239 | $ | 42,365 | ||||||
Deferred | (8,566 | ) | (20,294 | ) | 10,943 | |||||||
State: | ||||||||||||
Current | 6,242 | 6,202 | 5,853 | |||||||||
Deferred | (3,262 | ) | (1,627 | ) | 1,494 | |||||||
Foreign: | ||||||||||||
Current | 9,756 | 25,611 | 30,775 | |||||||||
Deferred | 3,852 | 4,117 | 7,698 | |||||||||
Total | $ | 45,824 | $ | 75,248 | $ | 99,128 | ||||||
Except where required by U.S. tax law, no provision was made for U.S. income taxes on the undistributed earnings of the foreign subsidiaries as the Company intends to utilize those earnings in the foreign operations for an indefinite period of time or repatriate such earnings only when tax-effective to do so. That portion of accumulated undistributed earnings of foreign subsidiaries as of January 31, 2015 and February 1, 2014 was approximately $772 million and $747 million, respectively. | ||||||||||||
Actual income tax expense differs from expected income tax expense obtained by applying the statutory federal income tax rate to earnings before income taxes as follows (in thousands): | ||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Computed “expected” tax expense | $ | 50,053 | $ | 81,536 | $ | 98,215 | ||||||
State taxes, net of federal benefit | 1,937 | 2,974 | 4,776 | |||||||||
Incremental foreign taxes less than federal statutory tax rate | (2,603 | ) | (10,107 | ) | (13,307 | ) | ||||||
Net tax settlements | — | — | 12,832 | |||||||||
Unrecognized tax benefit | 471 | 6,856 | 147 | |||||||||
Prior year tax adjustments | (2,955 | ) | (3,489 | ) | (2,300 | ) | ||||||
Other | (1,079 | ) | (2,522 | ) | (1,235 | ) | ||||||
Total | $ | 45,824 | $ | 75,248 | $ | 99,128 | ||||||
Total income tax expense (benefit) was allocated as follows (in thousands): | ||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Operations | $ | 45,824 | $ | 75,248 | $ | 99,128 | ||||||
Stockholders’ equity | (660 | ) | 3,673 | 3,703 | ||||||||
Total income taxes | $ | 45,164 | $ | 78,921 | $ | 102,831 | ||||||
The tax effects of the components of other comprehensive income (loss) were allocated as follows (in thousands): | ||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Derivative financial instruments designated as cash flow hedges | $ | 721 | $ | 237 | $ | (1,056 | ) | |||||
Marketable securities | (61 | ) | (4 | ) | 85 | |||||||
Defined benefit plans | (2,335 | ) | 2,963 | 2,855 | ||||||||
Total income tax expense (benefit) | $ | (1,675 | ) | $ | 3,196 | $ | 1,884 | |||||
Total earnings before income tax expense and noncontrolling interests were comprised of the following (in thousands): | ||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Domestic operations | $ | 98,036 | $ | 140,153 | $ | 169,755 | ||||||
Foreign operations | 44,972 | 92,806 | 110,859 | |||||||||
Earnings before income tax expense and noncontrolling interests | $ | 143,008 | $ | 232,959 | $ | 280,614 | ||||||
The tax effects of temporary differences that give rise to significant portions of current and non-current deferred tax assets and deferred tax liabilities as of January 31, 2015 and February 1, 2014 are presented below (in thousands): | ||||||||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||||||
Deferred tax assets: | ||||||||||||
Defined benefit plans | $ | 23,901 | $ | 21,716 | ||||||||
Deferred income | 15,953 | 11,261 | ||||||||||
Rent expense | 12,672 | 14,986 | ||||||||||
Deferred compensation | 12,416 | 10,692 | ||||||||||
Lease incentives | 6,179 | 8,180 | ||||||||||
Net operating losses | 6,122 | 2,133 | ||||||||||
Bad debt reserve | 5,175 | 9,526 | ||||||||||
Uniform capitalization | 1,927 | 2,162 | ||||||||||
Excess of book over tax depreciation/amortization | 1,667 | — | ||||||||||
Accrued bonus | 1,342 | 2,954 | ||||||||||
Other | 15,453 | 13,111 | ||||||||||
Total deferred tax assets | 102,807 | 96,721 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Goodwill amortization | (3,627 | ) | (3,693 | ) | ||||||||
Excess of tax over book depreciation/amortization | — | (9,310 | ) | |||||||||
Other | (3,872 | ) | (492 | ) | ||||||||
Valuation allowance | (7,501 | ) | (3,853 | ) | ||||||||
Net deferred tax assets | $ | 87,807 | $ | 79,373 | ||||||||
Included above as of January 31, 2015 and February 1, 2014, were $19.1 million and $24.4 million for current deferred tax assets, respectively, and $68.7 million and $55.0 million for non-current deferred tax assets, respectively. Based on the historical earnings of the Company and projections of future taxable earnings, management believes it is more likely than not that the results of operations will not generate sufficient taxable earnings to realize net deferred tax assets. Therefore, the Company has recorded a valuation allowance of $7.5 million, which is an increase of $3.6 million from the prior year. | ||||||||||||
As of January 31, 2015, the Company’s U.S. and certain retail operations in Asia, Europe and Brazil had net operating loss carryforwards of $40.1 million and capital loss carryforwards of $0.2 million. These are comprised of $7.1 million of operating loss carryforwards that have an unlimited carryforward life, $10.7 million of foreign operating loss carryforwards that expire between fiscal 2016 and fiscal 2024, $22.3 million of state operating loss carryforwards that expire between fiscal 2016 and fiscal 2035 and $0.2 million of U.S. capital loss carryforwards that expire in fiscal 2019. Based on the historical earnings of these operations, management believes that it is more likely than not that some of the operations will not generate sufficient earnings or capital gains to utilize all of the net operating loss and the capital loss. As of January 31, 2015 and February 1, 2014, the Company had a valuation allowance of $5.4 million and $0.7 million, respectively, related to its net operating loss carryforwards. | ||||||||||||
The Company accrues an amount for its estimate of additional income tax liability which the Company, more likely than not, could incur as a result of the ultimate resolution of income tax audits (“uncertain tax positions”). The Company reviews and updates the estimates used in the accrual for uncertain tax positions as more definitive information becomes available from taxing authorities, upon completion of tax audits, upon expiration of statutes of limitation, or upon occurrence of other events. | ||||||||||||
A reconciliation of the beginning and ending amount of gross unrecognized tax benefit (excluding interest and penalties) is as follows (in thousands): | ||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Beginning balance | $ | 10,900 | $ | 4,527 | $ | 16,045 | ||||||
Additions: | ||||||||||||
Tax positions related to the prior year | 4,224 | — | — | |||||||||
Tax positions related to the current year | 1,722 | 7,501 | — | |||||||||
Reductions: | ||||||||||||
Tax positions related to the prior year | (55 | ) | (1,128 | ) | (568 | ) | ||||||
Tax positions related to the current year | (91 | ) | — | — | ||||||||
Settlements | (599 | ) | — | (10,950 | ) | |||||||
Expiration of statutes of limitation | (2,461 | ) | — | — | ||||||||
Ending balance | $ | 13,640 | $ | 10,900 | $ | 4,527 | ||||||
The amount of unrecognized tax benefit as of January 31, 2015 includes $12.6 million (net of federal benefit on state issues) which, if ultimately recognized, may reduce our future annual effective tax rate. As of January 31, 2015 and February 1, 2014, the Company had $14.4 million and $11.4 million, respectively, of aggregate accruals for uncertain tax positions, including penalties and interest. | ||||||||||||
The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company included interest and penalties related to uncertain tax positions of $0.3 million in net income tax expense for fiscal 2015. There were minimal interest and penalties related to uncertain tax positions included in net income tax expense for fiscal 2014. Net income tax expense for fiscal 2013 included a benefit from interest and penalties related to uncertain tax positions of $0.9 million. Total interest and penalties related to uncertain tax positions was $0.7 million and $0.5 million for the years ended January 31, 2015 and February 1, 2014, respectively. | ||||||||||||
The Company and its subsidiaries are subject to U.S. federal and foreign income tax as well as income tax of multiple state and foreign local jurisdictions. From time-to-time, the Company is subject to routine income tax audits on various tax matters around the world in the ordinary course of business. Although the Company has substantially concluded all U.S. federal, foreign, state and foreign local income tax matters for years through fiscal 2009, as of January 31, 2015, several income tax audits were underway in multiple jurisdictions for various periods after fiscal 2009. The Company does not believe that the resolution of open matters will have a material effect on the Company’s financial position or liquidity. | ||||||||||||
Italian Tax Settlement | ||||||||||||
In January 2013, to avoid a potentially long and costly litigation process, the Company reached an agreement with the Italian tax authority regarding an ongoing audit of one of the Company’s Italian subsidiaries. The agreement covered fiscal years 2008 through 2013. As a result of the agreement during the fourth quarter of fiscal 2013, the Company recorded a settlement charge of $12.8 million (including penalty and interest and net of related offsets in other tax jurisdictions) in excess of prior uncertain tax position reserves of $11.7 million. The settlement amount was payable to the Italian tax authority in quarterly installments through fiscal 2015. | ||||||||||||
The Company was advised by its Italian counsel that tax audits like this one in Italy involving proposed income adjustments greater than €2 million are automatically referred for review by a public prosecutor who may seek to pursue charges or close the matter, and that resulting criminal charges, if any, would be instituted against individuals rather than against the affected companies under Italian law. Consistent with this process, a review proceeding by a prosecutor in Italy was initiated with respect to one current and two former members of the Guess European management team and the Company’s former President (as the signing officer for certain Italian tax returns covering the relevant periods). In July 2013, the matter was closed based on the prosecutor’s recommendation. |
Defined_Benefit_Plans
Defined Benefit Plans | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||
Defined Benefit Plans | Defined Benefit Plans | |||||||||||
The Company maintains two defined benefit plans for certain employees in the U.S. and Switzerland. In accordance with authoritative guidance for defined benefit pension and other postretirement plans, an asset for a plan’s overfunded status or a liability for a plan’s underfunded status is recognized in the consolidated balance sheets; plan assets and obligations that determine the plan’s funded status are measured as of the end of the Company’s fiscal year; and changes in the funded status of defined benefit postretirement plans are recognized in the year in which they occur. Such changes are reported in other comprehensive income (loss) and as a separate component of stockholders’ equity. | ||||||||||||
The Company’s pension obligations and related costs are calculated using actuarial concepts, within the authoritative guidance framework, and are considered Level 3 inputs as defined in Note 20. The life expectancy, estimated retirement age, discount rate, estimated future compensation and expected return on plan assets are important elements of expense and/or liability measurement. These critical assumptions are evaluated annually which enables expected future payments for benefits to be stated at present value on the measurement date. If actual results are not consistent with actuarial assumptions, the amounts recognized for the defined benefit plans could change significantly. | ||||||||||||
Supplemental Executive Retirement Plan | ||||||||||||
On August 23, 2005, the Board of Directors of the Company adopted a Supplemental Executive Retirement Plan (“SERP”) which became effective January 1, 2006. The SERP provides select employees who satisfy certain eligibility requirements with certain benefits upon retirement, termination of employment, death, disability or a change in control of the Company, in certain prescribed circumstances. Paul Marciano, Chief Executive Officer and Vice Chairman of the Board, is the only active employee participating in the SERP. | ||||||||||||
In July 2013, the Company amended the SERP to limit the amount of eligible wages under the plan that count toward the SERP benefit for the active participant. As a result, the projected benefit obligation and unrecognized prior service cost were reduced by $4.5 million during fiscal 2014. | ||||||||||||
As a non-qualified pension plan, no dedicated funding of the SERP is required; however, the Company has made, and may continue to make, periodic payments into insurance policies held in a rabbi trust to fund the expected obligations arising under the non-qualified SERP. The amount of any future payments into the insurance policies may vary, depending on any changes to the estimates of final annual compensation levels and investment performance of the trust. The cash surrender values of the insurance policies were $53.6 million and $51.4 million as of January 31, 2015 and February 1, 2014, respectively, and were included in other assets in the Company’s consolidated balance sheets. As a result of changes in the value of the insurance policy investments, the Company recorded unrealized gains of $2.2 million, $3.6 million and $3.4 million in other income during fiscal 2015, fiscal 2014 and fiscal 2013, respectively. | ||||||||||||
The components of net periodic defined benefit pension cost to comprehensive income (loss) for fiscal 2015, fiscal 2014 and fiscal 2013 related to the SERP were as follows (in thousands): | ||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Interest cost | $ | 2,289 | $ | 2,345 | $ | 2,392 | ||||||
Net amortization of unrecognized prior service (credit) cost | (233 | ) | 194 | 620 | ||||||||
Net amortization of actuarial losses | 938 | 1,108 | 3,340 | |||||||||
Net periodic defined benefit pension cost | $ | 2,994 | $ | 3,647 | $ | 6,352 | ||||||
Unrecognized prior service (credit) cost charged to comprehensive income (loss) | $ | (233 | ) | $ | 194 | $ | 620 | |||||
Unrecognized net actuarial loss charged to comprehensive income (loss) | 938 | 1,108 | 3,340 | |||||||||
Actuarial gains (losses) | (6,142 | ) | 1,751 | 3,508 | ||||||||
Plan amendment | — | 4,529 | — | |||||||||
Related tax impact | 2,080 | (2,963 | ) | (2,855 | ) | |||||||
Total periodic defined benefit pension cost and other charges to comprehensive income (loss) | $ | (3,357 | ) | $ | 4,619 | $ | 4,613 | |||||
Included in accumulated other comprehensive income (loss), before tax, as of January 31, 2015 and February 1, 2014 were the following amounts that have not yet been recognized in net periodic defined benefit pension cost (in thousands): | ||||||||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||||||
Unrecognized prior service credit (1) | $ | (1,748 | ) | $ | (1,981 | ) | ||||||
Unrecognized net actuarial loss | 18,178 | 12,974 | ||||||||||
Total included in accumulated other comprehensive loss | $ | 16,430 | $ | 10,993 | ||||||||
________________________________________________________________________ | ||||||||||||
-1 | During fiscal 2014, the Company amended the SERP to limit the amount of eligible wages under the plan that count toward the SERP benefit for the active participant. As a result, unrecognized prior service cost was reduced by $4.5 million during fiscal 2014. | |||||||||||
The following chart summarizes the SERP’s funded status and the amounts recognized in the Company’s consolidated balance sheets (in thousands): | ||||||||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||||||
Projected benefit obligation (1) | $ | (61,862 | ) | $ | (54,704 | ) | ||||||
Plan assets at fair value (2) | — | — | ||||||||||
Net liability | $ | (61,862 | ) | $ | (54,704 | ) | ||||||
________________________________________________________________________ | ||||||||||||
-1 | The projected benefit obligation was included in accrued expenses and other long-term liabilities in the Company’s consolidated balance sheets depending on the expected timing of payments. | |||||||||||
-2 | The SERP is a non-qualified pension plan and hence the insurance policies are not considered to be plan assets. Accordingly, the table above does not include the insurance policies with cash surrender values of $53.6 million and $51.4 million as of January 31, 2015 and February 1, 2014, respectively. | |||||||||||
A reconciliation of the changes in the projected benefit obligation for fiscal 2015 and fiscal 2014 is as follows (in thousands): | ||||||||||||
Projected Benefit | ||||||||||||
Obligation | ||||||||||||
Balance at February 2, 2013 | $ | 58,639 | ||||||||||
Interest cost | 2,345 | |||||||||||
Plan amendment | (4,529 | ) | ||||||||||
Actuarial gains | (1,751 | ) | ||||||||||
Balance at February 1, 2014 | $ | 54,704 | ||||||||||
Interest cost | 2,289 | |||||||||||
Actuarial losses | 6,142 | |||||||||||
Payments | (1,273 | ) | ||||||||||
Balance at January 31, 2015 | $ | 61,862 | ||||||||||
The Company assumed a discount rate of approximately 3.3% and 4.3% for the years ended January 31, 2015 and February 1, 2014, respectively, as part of the actuarial valuation performed to calculate the projected benefit obligation disclosed above, based on the timing of cash flows expected to be made in the future to the participants, applied to high quality yield curves. Compensation levels utilized in calculating the projected benefit obligation were derived from expected future compensation as outlined in employment contracts in effect at the time. In October 2014, the Society of Actuaries issued new mortality tables which reflected longer life expectancies than the previous tables. The Company considered these new tables in developing its best estimate of the expected mortality rates for its plan participants. | ||||||||||||
As of January 31, 2015, amounts included in comprehensive income (loss) that are expected to be recognized as components of net periodic defined benefit pension cost in fiscal 2016 consist of amortization of prior service credits of $0.2 million and actuarial losses of $1.7 million. Aggregate benefits projected to be paid in the next five fiscal years amount to $8.5 million with equal amounts expected to be paid during each of the years. Aggregate benefits projected to be paid in the following five fiscal years amount to $18.6 million. | ||||||||||||
Swiss Pension Plan | ||||||||||||
In accordance with local regulations, the Company also maintains a pension plan in Switzerland for certain of its employees. The plan is a government-mandated defined contribution plan that provides employees with a minimum investment return determined annually by the Swiss government, and as such, is treated under pension accounting in accordance with authoritative guidance. The minimum investment return was 1.75% during calendar 2014. Under the plan, both the Company and certain of its employees with annual earnings in excess of government determined amounts are required to make contributions into a fund managed by an independent investment fiduciary. The Company’s contributions must be made in an amount at least equal to the employee’s contribution. Minimum employee contributions are based on the respective employee’s age, salary and gender. As of January 31, 2015, the plan had a projected benefit obligation of CHF13.9 million (US$15.1 million) and plan assets held at the independent investment fiduciary of CHF11.5 million (US$12.5 million). The net liability of CHF2.4 million (US$2.6 million) was included in other long-term liabilities in the Company’s consolidated balance sheet as of January 31, 2015. Actuarial assumptions used by the Company to calculate the projected benefit obligation and the fair value of the plans assets as of January 31, 2015 included a discount rate of 0.5% and an expected return on plan assets of 1.25%. During fiscal 2015, the Company recognized net periodic defined benefit pension cost of CHF1.4 million (US$1.6 million) and included a pre-tax net unrealized loss and related amortization of approximately CHF2.5 million (US$2.8 million) in accumulated other comprehensive loss related to the Swiss pension plan. As of January 31, 2015, amounts included in comprehensive income (loss) that are expected to be recognized as components of net periodic defined benefit pension cost in fiscal 2016 consist of amortization of actuarial losses of CHF0.2 million (US$0.2 million). |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Jan. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions |
The Company and its subsidiaries periodically enter into transactions with other entities or individuals that are considered related parties, including certain transactions with entities affiliated with trusts for the respective benefit of Paul Marciano, who is an executive of the Company, Maurice Marciano, Chairman of the Board, Armand Marciano, their brother and former executive of the Company and certain of their children (the “Marciano Trusts”). | |
Leases | |
The Company leases warehouse and administrative facilities, including the Company’s corporate headquarters in Los Angeles, California, from partnerships affiliated with the Marciano Trusts and certain of their affiliates. There were four of these leases in effect as of January 31, 2015 with expiration dates ranging from 2015 to 2020. | |
Aggregate rent, common area maintenance charges and property tax expense recorded under these related party leases for fiscal 2015, fiscal 2014 and fiscal 2013 was $5.8 million, $6.1 million and $5.9 million, respectively. The Company believes the related party lease terms have not been significantly affected by the fact that the Company and the lessors are related. Refer to Note 14 for more information on lease commitments. | |
Aircraft Arrangements | |
The Company periodically charters aircraft owned by MPM Financial, LLC (“MPM Financial”), an entity affiliated with the Marciano Trusts, through MPM Financial and independent third party management companies contracted by MPM Financial to manage its aircraft. Under an informal arrangement with MPM Financial and the third party management companies, the Company has chartered, and may from time-to-time continue to charter, aircraft owned by MPM Financial at a discount from the third party management companies’ preferred customer hourly charter rates. The total fees paid under these arrangements for fiscal 2015, fiscal 2014 and fiscal 2013 were approximately $1.4 million, $0.6 million and $1.3 million, respectively. | |
Consulting Arrangement | |
After serving for over 30 years as an executive and leader for Guess?, Inc., co-founder Maurice Marciano retired from his position as executive Chairman of the Board and as an employee of the Company upon the expiration of his employment agreement on January 28, 2012. Mr. Marciano continues to serve the Company as its non-executive Chairman of the Board. In addition, under the terms of his previously existing employment agreement, the Company and Mr. Marciano entered into a two-year consulting agreement, subsequently extended for a third year (the “Marciano Consulting Agreement”), under which Mr. Marciano provided certain consulting services to the Company, including advice and counsel to the Company’s Chief Executive Officer and other senior executives. The Marciano Consulting Agreement provided for consulting fees of $500,000 per year and continued automobile use in a manner consistent with past practice. The Marciano Consulting Agreement expired on January 28, 2015 and was not renewed. Total expenses incurred with respect to the Marciano Consulting Agreement were approximately $0.5 million for each of fiscal 2015, fiscal 2014 and fiscal 2013. | |
Other Transactions | |
From time-to-time, the Company utilizes a third-party agent named Harmony Collection, LLC to produce specific apparel products on behalf of the Company. Armand Marciano, brother of Maurice and Paul Marciano, is part owner and an executive of the parent company of Harmony Collection, LLC. The total payments made by the Company under this arrangement for fiscal 2015, fiscal 2014 and fiscal 2013 were approximately $1.0 million, $2.2 million and $0.6 million, respectively. The Company believes that the price and transaction terms have not been significantly affected by the relationship between the parties. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies | |||||||||||||||
Leases | ||||||||||||||||
The Company leases its showrooms, advertising, licensing, sales and merchandising offices, remote distribution and warehousing facilities and retail and factory outlet store locations under operating lease agreements expiring on various dates through September 2031. Some of these leases require the Company to make periodic payments for property taxes, utilities and common area operating expenses. Certain retail store leases provide for rents based upon the minimum annual rental amount and a percentage of annual sales volume, generally ranging from 2% to 12%, when specific sales volumes are exceeded. Some leases include lease incentives, rent abatements and fixed rent escalations, which are amortized and recorded over the initial lease term on a straight-line basis. The Company also leases some of its equipment under operating lease agreements expiring at various dates through November 2019. As discussed in further detail in Note 8, the Company leases a building in Florence, Italy under a capital lease. | ||||||||||||||||
In March 2014, the Company amended its lease with respect to its primary U.S. distribution center based in Louisville, Kentucky to extend the term for an additional ten years, to 2024. The amendment also provides for two extension options for an additional period of five years each. | ||||||||||||||||
Future minimum property and equipment lease payments under the capital lease and non-cancelable operating leases as of January 31, 2015 are as follows (in thousands): | ||||||||||||||||
Operating Leases | ||||||||||||||||
Capital Lease | Non-Related | Related | Total | |||||||||||||
Parties | Parties | |||||||||||||||
Fiscal 2016 | $ | 1,778 | $ | 179,269 | $ | 4,739 | $ | 185,786 | ||||||||
Fiscal 2017 | 4,206 | 157,908 | 4,458 | 166,572 | ||||||||||||
Fiscal 2018 | — | 140,875 | 4,602 | 145,477 | ||||||||||||
Fiscal 2019 | — | 119,359 | 4,751 | 124,110 | ||||||||||||
Fiscal 2020 | — | 105,147 | 4,907 | 110,054 | ||||||||||||
Thereafter | — | 234,644 | 2,280 | 236,924 | ||||||||||||
Total minimum lease payments | $ | 5,984 | $ | 937,202 | $ | 25,737 | $ | 968,923 | ||||||||
Less interest | (239 | ) | ||||||||||||||
Capital lease obligations | $ | 5,745 | ||||||||||||||
Less current portion | (1,548 | ) | ||||||||||||||
Long-term capital lease obligations | $ | 4,197 | ||||||||||||||
Rental expense for all property and equipment operating leases during fiscal 2015, fiscal 2014 and fiscal 2013 aggregated $284.0 million, $283.5 million and $273.4 million, respectively, including percentage rent of $64.7 million, $68.7 million and $81.4 million, respectively. | ||||||||||||||||
Purchase Commitments | ||||||||||||||||
Inventory purchase commitments as of January 31, 2015 were $210.0 million. These purchase commitments can be impacted by various factors, including the scheduling of market weeks, the timing of issuing orders, the timing of the shipment of orders and currency fluctuations. Accordingly, a comparison of purchase orders from period-to-period is not necessarily meaningful. | ||||||||||||||||
Incentive Bonuses | ||||||||||||||||
Certain officers and key employees of the Company are eligible to receive annual cash incentive bonuses based on the achievement of certain performance criteria. These bonuses are based on performance measures such as earnings per share and earnings from operations of the Company or particular segments thereof, as well as other objective and subjective criteria as determined by the Compensation Committee of the Board of Directors. | ||||||||||||||||
Litigation | ||||||||||||||||
On May 6, 2009, Gucci America, Inc. filed a complaint in the U.S. District Court for the Southern District of New York against Guess?, Inc. and certain third-party licensees for the Company asserting, among other things, trademark and trade dress law violations and unfair competition. The complaint sought injunctive relief, compensatory damages, including treble damages, and certain other relief. Complaints similar to those in the above action have also been filed by Gucci entities against the Company and certain of its subsidiaries in the Court of Milan, Italy, the Intermediate People’s Court of Nanjing, China and the Court of Paris, France. The three-week bench trial in the U.S. matter concluded on April 19, 2012, with the court issuing a preliminary ruling on May 21, 2012 and a final ruling on July 19, 2012. Although the plaintiff was seeking compensation in the U.S. matter in the form of damages of $26 million and an accounting of profits of $99 million, the final ruling provided for monetary damages of $2.3 million against the Company and $2.3 million against certain of its licensees. The court also granted narrow injunctions in favor of the plaintiff for certain of the claimed infringements. On August 20, 2012, the appeal period expired without any party having filed an appeal, rendering the judgment final. On May 2, 2013, the Court of Milan ruled in favor of the Company in the Milan, Italy matter. In the ruling, the Court rejected all of the plaintiff’s claims and ordered the cancellation of three of the plaintiff’s Italian and four of the plaintiff’s European Community trademark registrations. On June 10, 2013, the plaintiff appealed the Court’s ruling in the Milan matter. On September 15, 2014, the Court of Appeal of Milan affirmed the majority of the lower Court’s ruling in favor of the Company, but overturned the lower Court’s finding with respect to an unfair competition claim. The matter has now entered into a damages phase based on the ruling. In the China matter, the Intermediate People’s Court of Nanjing, China issued a ruling on November 8, 2013 granting an injunction in favor of the plaintiff for certain of the claimed infringements on handbags and small leather goods and awarding the plaintiff statutory damages in the amount of approximately $80,000. The Company strongly disagrees with the Court’s decision and has appealed the ruling. The judgment in the China matter is stayed pending the appeal, which was heard in May 2014. On January 30, 2015, the Court of Paris ruled in favor of the Company, rejecting all of the plaintiff’s claims and partially cancelling two of the plaintiff’s community trademark registrations and one of the plaintiff’s international trademark registrations. On February 17, 2015, the plaintiff appealed the Court of Paris’ ruling. | ||||||||||||||||
On August 25, 2006, Franchez Isaguirre, a former employee of the Company, filed a complaint in the Superior Court of California, County of Los Angeles alleging violations by the Company of California wage and hour laws. The complaint was subsequently amended, adding a second former employee as an additional named party. The plaintiffs purport to represent a class of similarly situated employees in California who allegedly had been injured by not being provided adequate meal and rest breaks. The complaint seeks unspecified compensatory damages, statutory penalties, attorney’s fees and injunctive and declaratory relief. On June 9, 2009, the Court certified the class but immediately stayed the case pending the resolution of a separate California Supreme Court case on the standards of class treatment for meal and rest break claims. Following the Supreme Court ruling, the Superior Court denied the Company’s motions to decertify the class and to narrow the class in January 2013 and June 2013, respectively. The Company subsequently petitioned to have the Court’s decision not to narrow the class definition reviewed. That petition was ultimately denied by the California Supreme Court in April 2014. Trial is currently scheduled for October 26, 2015. | ||||||||||||||||
The Company has received customs tax assessment notices from the Italian Customs Agency regarding its customs tax audit of one of the Company’s European subsidiaries for the period from July 2010 through June 2012. Such assessments total €9.0 million ($10.1 million), including potential penalties and interest. It is possible that the Company will receive similar or even larger assessments for periods subsequent to June 2012 or other claims or charges related to the matter in the future. The Company strongly disagrees with the positions that the Italian Customs Agency has taken and has therefore filed appeals with the Court of Milan. | ||||||||||||||||
Although the Company believes that it has a strong position and will continue to vigorously defend each of these remaining matters, it is unable to predict with certainty whether or not these efforts will ultimately be successful or whether the outcomes will have a material impact on the Company’s financial position or results of operations. | ||||||||||||||||
The Company is also involved in various other claims and other matters incidental to the Company’s business, the resolution of which is not expected to have a material adverse effect on the Company’s financial position or results of operations. No material amounts were accrued as of January 31, 2015 or February 1, 2014 related to any of the Company’s legal proceedings. | ||||||||||||||||
Redeemable Noncontrolling Interests | ||||||||||||||||
The Company is party to a put arrangement with respect to the common securities that represent the remaining noncontrolling interest from the acquisition of its majority-owned subsidiary, Guess Sud SAS (“Guess Sud”). The put arrangement for Guess Sud, representing 40% of the total outstanding equity interest of that subsidiary, may be exercised at the discretion of the noncontrolling interest holders by providing written notice to the Company any time after January 30, 2012. The put arrangement is recorded on the balance sheet at its expected redemption value based on a method which approximates fair value and classified as a redeemable noncontrolling interest outside of permanent equity. The redemption value of the Guess Sud redeemable put arrangement was $3.4 million and $4.7 million as of January 31, 2015 and February 1, 2014, respectively. | ||||||||||||||||
During fiscal 2014, the Company entered into a majority-owned joint venture to establish Guess Brasil Comércio e Distribuição S.A. (“Guess Brazil”). The Company funded $1.8 million to obtain a 60% interest in Guess Brazil and is subject to a put arrangement with respect to the common securities that represent the remaining noncontrolling interest. The put arrangement may be exercised at the discretion of the noncontrolling interest holder by providing written notice to the Company beginning in the sixth year of the agreement, or sooner in certain limited circumstances, and every third anniversary from the end of the sixth year thereafter subject to certain time restrictions. The redemption value of the Guess Brazil put arrangement is based on a multiple of Guess Brazil’s earnings before interest, taxes, depreciation and amortization subject to certain adjustments. The carrying value of the redeemable noncontrolling interest related to Guess Brazil was $1.0 million and $1.1 million as of January 31, 2015 and February 1, 2014, respectively. | ||||||||||||||||
The Company was previously party to a put arrangement in connection with its now wholly-owned subsidiary, Focus Europe S.r.l. (“Focus”). Under the terms of this put arrangement, which represented 25% of the total outstanding interest of that subsidiary, the noncontrolling interest holder had the option to exercise the put arrangement at its discretion by providing written notice to the Company no later than June 27, 2012. The redemption value of the put arrangement was determined based on a multiple of Focus’s net earnings. In June 2012, the noncontrolling interest holder notified the Company of its intent to exercise the put arrangement. On July 9, 2012, the Company paid $4.2 million to the noncontrolling interest holder to acquire the remaining 25% interest in Focus. This amount was determined based on a multiple of Focus’s net earnings in accordance with the terms of the put arrangement. | ||||||||||||||||
A reconciliation of the total carrying amount of redeemable noncontrolling interests for fiscal 2015 and fiscal 2014 is as follows (in thousands): | ||||||||||||||||
Year Ended | Year Ended | |||||||||||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||||||||||
Beginning balance | $ | 5,830 | $ | 3,144 | ||||||||||||
Foreign currency translation adjustment | (788 | ) | (104 | ) | ||||||||||||
Noncontrolling interest capital contribution | — | 1,199 | ||||||||||||||
Redeemable noncontrolling interest redemption value adjustment | (605 | ) | 1,591 | |||||||||||||
Ending balance | $ | 4,437 | $ | 5,830 | ||||||||||||
Savings_Plans
Savings Plans | 12 Months Ended |
Jan. 31, 2015 | |
Savings Plans | |
Savings Plans | Savings Plans |
The Company established the Guess?, Inc. Savings Plan (the “Savings Plan”) under Section 401(k) of the Internal Revenue Code. Under the Savings Plan, employees (“associates”) may contribute up to 100% of their compensation per year subject to the elective limits as defined by IRS guidelines and the Company may make matching contributions in amounts not to exceed 3.0% of the associates’ annual compensation. Investment selections consist of mutual funds and do not include any Company common stock. The Company’s contributions to the Savings Plan amounted to $1.3 million for each of fiscal 2015, fiscal 2014 and fiscal 2013. | |
Effective January 1, 2006, the Company adopted a Non-qualified Deferred Compensation Plan (the “DCP”). Under the DCP, select employees who satisfy certain eligibility requirements and members of the Board of Directors may make annual irrevocable elections to defer a portion of their base compensation and/or bonuses. The deferred amounts and earnings thereon are payable to participants at specified future distribution dates, upon termination of employment, retirement, disability, death or change in control of the Company, in a lump sum or installments, pursuant to elections under the rules of the DCP. The participants to the DCP have an unsecured contractual commitment by the Company to pay the amounts due under the DCP. The Company has purchased corporate-owned life insurance, which is held in a rabbi trust, to offset this liability. The assets held in the rabbi trust are not available for general corporate purposes except in the event of bankruptcy of the Company. All earnings and expenses of the rabbi trust are reported in the Company’s consolidated statements of income in other income and expense. For fiscal 2015, fiscal 2014 and fiscal 2013, the Company incurred gains of $0.3 million, $0.6 million and $0.4 million, respectively, related to the change in the value of the insurance policy investments. The deferred compensation liability as of January 31, 2015 and February 1, 2014 was $9.1 million and $7.5 million, respectively. The related long-term asset as of January 31, 2015 and February 1, 2014 was $9.4 million and $9.1 million, respectively. |
Quarterly_Information_Unaudite
Quarterly Information (Unaudited) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Information (Unaudited) | Quarterly Information (Unaudited) | ||||||||||||||||
The following is a summary of the unaudited quarterly financial information for fiscal 2015 and fiscal 2014 (in thousands, except per share data): | |||||||||||||||||
Quarterly Periods Ended (1) | |||||||||||||||||
Year Ended January 31, 2015 | May 3, | Aug 2, | Nov 1, | Jan 31, | |||||||||||||
2014 | 2014 | 2014 | 2015 | ||||||||||||||
Net revenue | $ | 522,541 | $ | 608,571 | $ | 589,834 | $ | 696,727 | |||||||||
Gross profit | 176,231 | 216,777 | 213,958 | 260,919 | |||||||||||||
Net earnings (loss) | (2,187 | ) | 22,272 | 21,510 | 55,589 | ||||||||||||
Net earnings (loss) attributable to Guess?, Inc. | (2,101 | ) | 21,954 | 20,788 | 53,929 | ||||||||||||
Net earnings (loss) per common share attributable to common stockholders: (2) | |||||||||||||||||
Basic | $ | (0.03 | ) | $ | 0.26 | $ | 0.24 | $ | 0.63 | ||||||||
Diluted | $ | (0.03 | ) | $ | 0.26 | $ | 0.24 | $ | 0.63 | ||||||||
Quarterly Periods Ended (1) | |||||||||||||||||
Year Ended February 1, 2014 | May 4, | Aug 3, | Nov 2, | Feb 1, | |||||||||||||
2013 | 2013 | 2013 | 2014 | ||||||||||||||
Net revenue | $ | 548,914 | $ | 639,012 | $ | 613,497 | $ | 768,363 | |||||||||
Gross profit | 197,426 | 248,532 | 228,227 | 301,949 | |||||||||||||
Net earnings | 11,100 | 40,703 | 34,811 | 71,097 | |||||||||||||
Net earnings attributable to Guess?, Inc. | 9,916 | 39,866 | 34,020 | 69,632 | |||||||||||||
Net earnings per common share attributable to common stockholders: (2) (3) | |||||||||||||||||
Basic | $ | 0.12 | $ | 0.47 | $ | 0.4 | $ | 0.82 | |||||||||
Diluted | $ | 0.12 | $ | 0.47 | $ | 0.4 | $ | 0.82 | |||||||||
_________________________________________________________________________ | |||||||||||||||||
-1 | All fiscal quarters presented consisted of 13 weeks. | ||||||||||||||||
-2 | Per common share amounts for the quarters and full years have been calculated separately. Accordingly, quarterly amounts may not add to the annual amount because of differences in the average common shares outstanding during each period. | ||||||||||||||||
-3 | During the first quarter of fiscal 2014, the Company implemented plans to streamline its structure and reduce expenses in both Europe and North America. During the second quarter of fiscal 2014, the Company expanded these plans to include the consolidation and streamlining of certain operations in Europe and Asia. These actions resulted in restructuring charges of $2.3 million, $6.1 million, $1.9 million and $2.1 million during the first, second, third and fourth quarters of fiscal 2014, respectively. Refer to Note 9 for further detail regarding the restructuring charges. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Information | Segment Information | |||||||||||
The Company’s reportable business segments and respective accounting policies of the segments are the same as those described in Note 1. Management evaluates segment performance based primarily on revenues and earnings (loss) from operations before restructuring charges, if any. Corporate overhead, restructuring charges, interest income, interest expense and other income and expense are evaluated on a consolidated basis and not allocated to the Company’s business segments. | ||||||||||||
Segment information is summarized as follows (in thousands): | ||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Net revenue: | ||||||||||||
North American Retail | $ | 1,032,601 | $ | 1,075,475 | $ | 1,116,836 | ||||||
Europe | 825,136 | 903,791 | 939,599 | |||||||||
Asia | 281,090 | 292,714 | 290,655 | |||||||||
North American Wholesale | 167,707 | 179,600 | 194,373 | |||||||||
Licensing | 111,139 | 118,206 | 117,142 | |||||||||
Total net revenue | $ | 2,417,673 | $ | 2,569,786 | $ | 2,658,605 | ||||||
Earnings (loss) from operations: | ||||||||||||
North American Retail | $ | (13,734 | ) | $ | 39,540 | $ | 78,285 | |||||
Europe | 66,231 | 97,231 | 103,975 | |||||||||
Asia | 8,013 | 25,592 | 26,525 | |||||||||
North American Wholesale | 34,173 | 38,771 | 45,008 | |||||||||
Licensing | 101,288 | 107,805 | 101,182 | |||||||||
Corporate Overhead | (70,059 | ) | (73,910 | ) | (80,450 | ) | ||||||
Restructuring Charges | — | (12,442 | ) | — | ||||||||
Total earnings from operations | $ | 125,912 | $ | 222,587 | $ | 274,525 | ||||||
Capital expenditures: | ||||||||||||
North American Retail | $ | 30,704 | $ | 29,980 | $ | 49,759 | ||||||
Europe | 22,930 | 30,994 | 31,930 | |||||||||
Asia | 7,150 | 7,150 | 8,614 | |||||||||
North American Wholesale | 4,958 | 4,870 | 2,725 | |||||||||
Licensing | 16 | 39 | 40 | |||||||||
Corporate Overhead | 5,740 | 2,405 | 6,523 | |||||||||
Total capital expenditures | $ | 71,498 | $ | 75,438 | $ | 99,591 | ||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||||||
Total assets: | ||||||||||||
North American Retail | $ | 279,903 | $ | 334,464 | ||||||||
Europe | 690,294 | 819,999 | ||||||||||
Asia | 146,292 | 158,798 | ||||||||||
North American Wholesale | 274,996 | 138,918 | ||||||||||
Licensing | 9,933 | 16,037 | ||||||||||
Corporate Overhead | 199,987 | 296,215 | ||||||||||
Total assets | $ | 1,601,405 | $ | 1,764,431 | ||||||||
The table below presents information regarding geographic areas in which the Company operated. Net revenue is classified primarily based on the country where the Company’s customer is located (in thousands): | ||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Net revenue: | ||||||||||||
U.S. | $ | 951,137 | $ | 988,746 | $ | 1,028,549 | ||||||
Italy | 278,523 | 306,281 | 365,299 | |||||||||
Canada | 238,417 | 264,107 | 290,320 | |||||||||
South Korea | 200,465 | 198,843 | 182,475 | |||||||||
Other foreign countries | 749,131 | 811,809 | 791,962 | |||||||||
Total net revenue | $ | 2,417,673 | $ | 2,569,786 | $ | 2,658,605 | ||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||||||
Long-lived assets: | ||||||||||||
U.S. | $ | 130,497 | $ | 154,251 | ||||||||
Italy | 40,609 | 54,842 | ||||||||||
Canada | 22,476 | 29,803 | ||||||||||
South Korea | 8,945 | 7,328 | ||||||||||
Other foreign countries | 110,763 | 135,546 | ||||||||||
Total long-lived assets | $ | 313,290 | $ | 381,770 | ||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings Per Share | Earnings Per Share | |||||||||||
The computation of basic and diluted net earnings per common share attributable to common stockholders is as follows (in thousands, except per share data): | ||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Net earnings attributable to Guess?, Inc. | $ | 94,570 | $ | 153,434 | $ | 178,744 | ||||||
Less net earnings attributable to nonvested restricted stockholders | 662 | 1,243 | 1,347 | |||||||||
Net earnings attributable to common stockholders | $ | 93,908 | $ | 152,191 | $ | 177,397 | ||||||
Weighted average common shares used in basic computations | 84,604 | 84,271 | 86,262 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options and restricted stock units | 233 | 251 | 278 | |||||||||
Weighted average common shares used in diluted computations | 84,837 | 84,522 | 86,540 | |||||||||
Net earnings per common share attributable to common stockholders: | ||||||||||||
Basic | $ | 1.11 | $ | 1.81 | $ | 2.06 | ||||||
Diluted | $ | 1.11 | $ | 1.8 | $ | 2.05 | ||||||
For fiscal 2015, fiscal 2014 and fiscal 2013, equity awards granted for 1,551,511, 1,251,927 and 1,364,703, respectively, of the Company’s common shares were outstanding but were excluded from the computation of diluted weighted average common shares and common share equivalents outstanding because the assumed proceeds, as calculated under the treasury stock method, resulted in these awards being antidilutive. For fiscal 2015, the Company also excluded 159,700 nonvested stock units which were subject to the achievement of performance-based vesting conditions from the computation of diluted weighted average common shares and common share equivalents outstanding because the performance condition was not achieved as of January 31, 2015. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Share-Based Compensation | Share-Based Compensation | ||||||||||||
Share-Based Compensation Plans | |||||||||||||
The Company has four share-based compensation plans. The Guess?, Inc. 2004 Equity Incentive Plan (the “Plan”) provides that the Board of Directors may grant stock options and other equity awards to officers, key employees and certain consultants and advisors to the Company or any of its subsidiaries. Effective May 20, 2014, the Plan was amended to extend the term for an additional ten years and reduce the authorized issuance of shares from 20,000,000 shares of common stock to 15,000,000 shares of common stock. The amendment also extended the ability for the Company to grant certain performance-based awards under the Plan through the beginning of calendar year 2019. All other remaining provisions under the Plan remain in full force and effect. As of January 31, 2015 and February 1, 2014, there were 6,593,723 and 12,151,436 shares available for grant under the Plan, respectively. Stock options granted under the Plan have ten-year terms and typically vest and become fully exercisable in increments of one-fourth of the shares granted on each anniversary from the date of grant. Stock awards/units granted under the Plan typically vest in increments of one-fourth of the shares granted on each anniversary from the date of grant. The three most recent annual grants for stock options and other equity awards had initial vesting periods of nine months followed by three annual vesting periods. The Guess?, Inc. Employee Stock Purchase Plan (“ESPP”) allows for qualified employees to participate in the purchase of designated shares of the Company’s common stock at a price equal to 85% of the lower of the closing price at the beginning or end of each quarterly stock purchase period. The Guess?, Inc. 2006 Non-Employee Directors’ Stock Grant and Stock Option Plan (the “Director Plan”) provides for the grant of equity awards to non-employee directors. The Director Plan authorizes the issuance of up to 2,000,000 shares of common stock which consists of 1,000,000 shares that were initially approved for issuance on July 30, 1996 plus an additional 1,000,000 shares that were approved for issuance effective May 9, 2006. As of January 31, 2015 and February 1, 2014, there were 827,463 and 860,432 shares available for grant under this plan, respectively. In addition, the Guess?, Inc. 1996 Equity Incentive Plan, under which equity grants have not been permitted since the approval of the Plan in 2004, continues to govern outstanding awards previously made thereunder. | |||||||||||||
Performance Awards | |||||||||||||
On April 8, 2014, the Company granted 100,000 nonvested stock units to Paul Marciano, the Company’s Chief Executive Officer and Vice Chairman of the Board, in connection with an employment agreement entered into between the Company and Mr. Marciano during fiscal 2014. The nonvested stock units had an initial vesting period of ten months followed by two annual vesting periods and were subject to certain performance-based vesting conditions for fiscal 2015 as well as continued service vesting conditions through the vesting periods. The Company also granted a target of 159,700 nonvested stock units to Mr. Marciano on April 8, 2014; however, these stock units are not expected to vest as a result of certain performance-based vesting conditions for fiscal 2015. | |||||||||||||
On July 11, 2013, the Company granted 100,000 nonvested stock units to Mr. Marciano which had an initial vesting period of seven months followed by two annual vesting periods and were subject to certain performance-based vesting conditions for the last three quarters of fiscal 2014 as well as continued service vesting conditions through the vesting periods. The Company also granted a target of 143,700 nonvested stock units to Mr. Marciano, of which approximately 84% are expected to vest based on the achievement of certain performance-based conditions for the last three quarters of fiscal 2014 subject to continued service vesting conditions through the vesting date. Such shares are scheduled to vest on February 1, 2016. | |||||||||||||
On May 1, 2008, the Company granted an aggregate of 167,000 nonvested stock awards to certain employees which were subject to certain annual performance-based vesting conditions over a five-year period. On October 30, 2008, the Company granted an aggregate of 563,400 nonvested stock options to certain employees scheduled to vest over a four-year period, which were subject to the achievement of certain performance-based vesting conditions for fiscal 2010. During the first quarter of fiscal 2010, the Compensation Committee determined that the performance goals established in the prior year were no longer set at an appropriate level to incentivize and help retain employees given the greater than previously anticipated deterioration of the economy that had occurred since the goals were established. Therefore, in April 2009, the Compensation Committee modified the performance goals of that year’s tranche of the outstanding performance-based stock awards and options to address the challenges associated with the economic environment. During first quarter of fiscal 2011, fiscal 2012 and fiscal 2013, the Compensation Committee modified the performance goals of the respective year’s tranche of the outstanding performance-based stock awards to address the continuing challenges associated with the economic environment. None of the modifications had a material impact on the consolidated financial statements of the Company. | |||||||||||||
Share-Based Compensation Expense | |||||||||||||
Compensation expense for nonvested stock options and stock awards is recognized on a straight-line basis over the vesting period. The Company estimates forfeitures in calculating the expense relating to share-based compensation as opposed to recognizing forfeitures as an expense reduction as they occur. | |||||||||||||
The following table summarizes the share-based compensation expense recognized under all of the Company’s stock plans during fiscal 2015, fiscal 2014 and fiscal 2013 (in thousands): | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | |||||||||||
Stock options | $ | 2,106 | $ | 2,490 | $ | 4,633 | |||||||
Nonvested stock awards/units | 12,999 | 11,225 | 11,337 | ||||||||||
ESPP | 237 | 234 | 315 | ||||||||||
Total share-based compensation expense | $ | 15,342 | $ | 13,949 | $ | 16,285 | |||||||
Stock options | |||||||||||||
The following table summarizes the stock option activity under all of the Company’s stock plans during fiscal 2015: | |||||||||||||
Number of Shares | Weighted Average | Weighted Average | Aggregate | ||||||||||
Exercise Price | Remaining | Intrinsic | |||||||||||
Contractual | Value ($000’s) | ||||||||||||
Term (Years) | |||||||||||||
Options outstanding at February 1, 2014 | 1,781,926 | $ | 30.46 | ||||||||||
Granted | 456,950 | 27.97 | |||||||||||
Exercised | (96,158 | ) | 12.92 | ||||||||||
Forfeited | (325,587 | ) | 31.27 | ||||||||||
Expired | — | — | |||||||||||
Options outstanding at January 31, 2015 | 1,817,131 | $ | 30.61 | 6.45 | $ | 69 | |||||||
Exercisable at January 31, 2015 | 1,274,541 | $ | 31.89 | 5.49 | $ | 69 | |||||||
Options exercisable and expected to vest at January 31, 2015 | 1,749,715 | $ | 30.74 | 6.34 | $ | 69 | |||||||
The fair value of each stock option was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted average assumptions used for grants during fiscal 2015, fiscal 2014 and fiscal 2013: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
Valuation Assumptions | Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Risk-free interest rate | 0.8 | % | 0.5 | % | 0.4 | % | |||||||
Expected stock price volatility | 36.1 | % | 39.7 | % | 46.8 | % | |||||||
Expected dividend yield | 3.3 | % | 3 | % | 2.6 | % | |||||||
Expected life of stock options (in years) | 3.7 | 3.7 | 3.6 | ||||||||||
The risk-free interest rate is based on the U.S. Treasury yield curve in effect for the expected term of the option at the time of grant. The expected volatility is determined based on an average of both historical volatility and implied volatility. Implied volatility is derived from exchange traded options on the Company’s common stock. The expected dividend yield is based on the Company’s history and expectations of dividend payouts. The expected life is determined based on historical trends. The expected forfeiture rate is determined based on historical data. | |||||||||||||
The weighted average grant date fair value of options granted was $5.99, $6.38 and $8.92 during fiscal 2015, fiscal 2014 and fiscal 2013, respectively. The total intrinsic value of stock options exercised during fiscal 2015, fiscal 2014 and fiscal 2013 was $0.9 million, $2.2 million and $3.4 million, respectively. The intrinsic value of stock options is defined as the difference between the Company’s stock price on the exercise date and the grant date exercise price. The total cash received from option exercises was $1.2 million, $5.0 million and $5.1 million during fiscal 2015, fiscal 2014 and fiscal 2013, respectively. | |||||||||||||
The excess tax benefit realized for the tax deductions from option exercises for fiscal 2015 was $0.2 million and has been included in cash flows from financing activities for fiscal 2015. The excess tax shortfall of $0.5 million was included in cash flows from operating activities for fiscal 2015. The compensation expense included in SG&A expense recognized was $2.1 million before the recognized income tax benefit of $0.7 million during fiscal 2015. As of January 31, 2015, there was approximately $2.9 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to nonvested stock options. This cost is expected to be recognized over a weighted average period of 1.6 years. | |||||||||||||
Nonvested stock awards/units | |||||||||||||
The following table summarizes the nonvested stock awards/units activity under all of the Company’s stock plans during fiscal 2015: | |||||||||||||
Number of | Weighted | ||||||||||||
Shares/Units | Average | ||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
Nonvested at February 1, 2014 | 963,655 | $ | 29.76 | ||||||||||
Granted | 631,645 | 28.12 | |||||||||||
Vested | (431,713 | ) | 30.12 | ||||||||||
Forfeited | (172,000 | ) | 29.06 | ||||||||||
Nonvested at January 31, 2015 | 991,587 | $ | 28.71 | ||||||||||
The weighted average grant date fair value of nonvested stock awards/units granted was $28.12, $28.34 and $29.71 during fiscal 2015, fiscal 2014 and fiscal 2013, respectively. The total fair value at grant date of previously nonvested stock awards/units that were vested during fiscal 2015, fiscal 2014 and fiscal 2013 was $13.0 million, $9.0 million and $17.5 million, respectively. During fiscal 2015, fiscal 2014 and fiscal 2013, the total intrinsic value of nonvested stock awards/units that vested was $9.9 million, $8.3 million and $15.0 million, respectively. | |||||||||||||
The excess tax benefit realized for the tax deductions from vested shares and dividends paid on unvested shares for fiscal 2015 was $0.2 million and has been included in cash flows from financing activities for fiscal 2015. The excess tax shortfall of $1.0 million was included in cash flows from operating activities for fiscal 2015. The total intrinsic value of nonvested stock awards/units outstanding and unvested as of January 31, 2015 was $18.6 million. The compensation expense included in SG&A expense recognized during fiscal 2015 was $13.0 million before the recognized income tax benefit of $4.6 million. As of January 31, 2015, there was approximately $16.4 million of total unrecognized compensation cost, adjusted for estimated forfeitures, related to nonvested stock awards/units. This cost is expected to be recognized over a weighted average period of 1.5 years. | |||||||||||||
ESPP | |||||||||||||
In January 2002, the Company established an ESPP, the terms of which allow for qualified employees (as defined) to participate in the purchase of designated shares of the Company’s common stock at a price equal to 85% of the lower of the closing price at the beginning or end of each quarterly stock purchase period. Prior to March 4, 2009, the ESPP was a straight purchase plan with no holding period requirement. Effective March 4, 2009, the ESPP was amended to require participants to hold any shares purchased under the ESPP after April 1, 2009 for a minimum period of six months after purchase. In addition, all Company employees are subject to the terms of the Company’s securities trading policy which generally prohibits the purchase or sale of any Company securities during the two weeks before the end of each fiscal quarter through two days after the public announcement by the Company of its earnings for that period. On January 23, 2002, the Company filed with the Securities and Exchange Commission (“SEC”) a Registration Statement on Form S-8 registering 4,000,000 shares of common stock for the ESPP. Effective March 12, 2012, the ESPP was amended and restated to extend the term for an additional ten years. | |||||||||||||
During fiscal 2015, fiscal 2014 and fiscal 2013, 47,538 shares, 43,265 shares and 50,013 shares of the Company’s common stock were issued pursuant to the ESPP at an average price of $21.20, $22.64 and $23.72 per share, respectively. | |||||||||||||
The fair value of stock compensation expense associated with the Company’s ESPP was estimated on the date of grant using the Black-Scholes option-pricing valuation model with the following weighted average assumptions used for grants during fiscal 2015, fiscal 2014 and fiscal 2013. | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
Valuation Assumptions | Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Risk-free interest rate | 0 | % | 0.1 | % | 0.1 | % | |||||||
Expected stock price volatility | 29 | % | 29.7 | % | 46.4 | % | |||||||
Expected dividend yield | 3.7 | % | 3.1 | % | 2.8 | % | |||||||
Expected life of ESPP options (in months) | 3 | 3 | 3 | ||||||||||
The weighted average grant date fair value of ESPP options granted during fiscal 2015, fiscal 2014 and fiscal 2013 was $5.02, $5.46 and $6.84, respectively. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||||||||
Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows: | |||||||||||||||||||||||||||||||||
Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that can be accessed at the measurement date. | |||||||||||||||||||||||||||||||||
Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e. interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). | |||||||||||||||||||||||||||||||||
Level 3—Unobservable inputs that reflect assumptions about what market participants would use in pricing the asset or liability. These inputs would be based on the best information available, including the Company’s own data. | |||||||||||||||||||||||||||||||||
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of January 31, 2015 and February 1, 2014 (in thousands): | |||||||||||||||||||||||||||||||||
Fair Value Measurements at Jan 31, 2015 | Fair Value Measurements at Feb 1, 2014 | ||||||||||||||||||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Foreign exchange currency contracts | $ | — | $ | 15,542 | $ | — | $ | 15,542 | $ | — | $ | 2,116 | $ | — | $ | 2,116 | |||||||||||||||||
Available-for-sale securities | 36 | — | — | 36 | 5,732 | — | — | 5,732 | |||||||||||||||||||||||||
Total | $ | 36 | $ | 15,542 | $ | — | $ | 15,578 | $ | 5,732 | $ | 2,116 | $ | — | $ | 7,848 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Foreign exchange currency contracts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,712 | $ | — | $ | 1,712 | |||||||||||||||||
Interest rate swap | — | 270 | — | 270 | — | 581 | — | 581 | |||||||||||||||||||||||||
Deferred compensation obligations | — | 9,133 | — | 9,133 | — | 7,498 | — | 7,498 | |||||||||||||||||||||||||
Total | $ | — | $ | 9,403 | $ | — | $ | 9,403 | $ | — | $ | 9,791 | $ | — | $ | 9,791 | |||||||||||||||||
There were no transfers of financial instruments between the three levels of fair value hierarchy during fiscal 2015 and fiscal 2014. | |||||||||||||||||||||||||||||||||
The fair values of the Company’s available-for-sale securities are based on quoted prices. The fair value of the interest rate swaps are based upon inputs corroborated by observable market data. Foreign exchange forward contracts are entered into by the Company principally to hedge the future payment of inventory and intercompany transactions by non-U.S. subsidiaries. Periodically, the Company may also use foreign currency forward contracts to hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries. The fair values of the Company’s foreign exchange forward contracts are based on quoted foreign exchange forward rates at the reporting date. Deferred compensation obligations to employees are adjusted based on changes in the fair value of the underlying employee-directed investments. Fair value of these obligations is based upon inputs corroborated by observable market data. | |||||||||||||||||||||||||||||||||
Available-for-sale securities are recorded at fair value and are included in short-term investments and other assets in the accompanying consolidated balance sheets depending on their respective maturity dates. As of January 31, 2015, available-for-sale securities consisting of marketable equity securities were minimal. During fiscal 2015, the Company received proceeds of $0.6 million from the sale of marketable equity securities which were classified as available-for-sale securities. The cost of securities sold was based on the specific identification method. Gains recognized during fiscal 2015 were $0.1 million as a result of this sale and were included in other income. Unrealized gains (losses), net of taxes, are included as a component of stockholders’ equity and comprehensive income (loss). The accumulated unrealized losses, net of taxes, included in accumulated other comprehensive income (loss) related to available-for-sale securities owned by the Company were minimal for the year ended January 31, 2015. | |||||||||||||||||||||||||||||||||
At February 1, 2014, available-for-sale securities consisted of $5.1 million of corporate bonds and $0.6 million of marketable equity securities. The accumulated unrealized gains, net of taxes, included in accumulated other comprehensive income (loss) related to available-for-sale securities owned by the Company were $0.1 million for the year ended February 1, 2014. | |||||||||||||||||||||||||||||||||
The carrying amount of the Company’s remaining financial instruments, which principally include cash and cash equivalents, trade receivables, accounts payable and accrued expenses, approximates fair value due to the relatively short maturity of such instruments. The fair values of the Company’s debt instruments (see Note 8) are based on the amount of future cash flows associated with each instrument discounted using the Company’s incremental borrowing rate. As of January 31, 2015 and February 1, 2014, the carrying value of all financial instruments was not materially different from fair value, as the interest rates on variable-rate debt including the capital lease obligation approximated rates currently available to the Company. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||||||||
Jan. 31, 2015 | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments | ||||||||||||||
Hedging Strategy | |||||||||||||||
The Company operates in foreign countries, which exposes it to market risk associated with foreign currency exchange rate fluctuations. The Company has entered into certain forward contracts to hedge the risk of foreign currency rate fluctuations. The Company has elected to apply the hedge accounting rules in accordance with authoritative guidance for certain of these hedges. | |||||||||||||||
The Company’s primary objective is to hedge the variability in forecasted cash flows due to the foreign currency risk. Various transactions that occur primarily in Europe, Canada, South Korea and Mexico are denominated in U.S. dollars and British pounds and thus are exposed to earnings risk as a result of exchange rate fluctuations when converted to their functional currencies. These types of transactions include U.S. dollar denominated purchases of merchandise and U.S. dollar and British pound denominated intercompany liabilities. In addition, certain operating expenses, tax liabilities and pension-related liabilities are denominated in Swiss francs and are exposed to earnings risk as a result of exchange rate fluctuations when converted to the functional currency. The Company enters into derivative financial instruments, including forward exchange contracts, to offset some but not all of the exchange risk on certain of these anticipated foreign currency transactions. | |||||||||||||||
Periodically, the Company may also use foreign currency forward contracts to hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries. | |||||||||||||||
The impact of the credit risk of the counterparties to the derivative contracts is considered in determining the fair value of the foreign currency forward contracts. As of January 31, 2015, credit risk has not had a significant effect on the fair value of the Company’s foreign currency contracts. | |||||||||||||||
The Company also has interest rate swap agreements, which are not designated as hedges for accounting purposes, to effectively convert its floating-rate debt to a fixed-rate basis. The principal objective of these contracts is to eliminate or reduce the variability of the cash flows in interest payments associated with the Company’s variable-rate capital lease obligation, thus reducing the impact of interest rate changes on future interest payment cash flows. For fiscal 2015, the Company recorded a net gain of $0.2 million in other income related to the interest rate swaps. Refer to Note 8 for further information. | |||||||||||||||
Hedge Accounting Policy | |||||||||||||||
U.S. dollar forward contracts are used to hedge forecasted merchandise purchases over specific months. Changes in the fair value of these U.S. dollar forward contracts, designated as cash flow hedges, are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in cost of product sales in the period which approximates the time the hedged merchandise inventory is sold. The Company also hedges forecasted intercompany royalties over specific months. Changes in the fair value of these U.S. dollar forward contracts, designated as cash flow hedges, are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in other income and expense in the period in which the royalty expense is incurred. | |||||||||||||||
U.S. dollar forward contracts are also used to hedge the net investments of certain of the Company’s international subsidiaries over specific months. Changes in the fair value of these U.S. dollar forward contracts, designated as net investment hedges, are recorded in foreign currency translation adjustment as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are not recognized in earnings until the sale or liquidation of the hedged net investment. | |||||||||||||||
The Company also has foreign currency contracts that are not designated as hedging instruments for accounting purposes. Changes in fair value of foreign currency contracts not designated as hedging instruments are reported in net earnings as part of other income and expense. | |||||||||||||||
Summary of Derivative Instruments | |||||||||||||||
The fair value of derivative instruments in the consolidated balance sheets as of January 31, 2015 and February 1, 2014 was as follows (in thousands): | |||||||||||||||
Derivative | Fair Value at Jan 31, 2015 | Fair Value at Feb 1, 2014 | |||||||||||||
Balance Sheet | |||||||||||||||
Location | |||||||||||||||
ASSETS: | |||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Foreign exchange currency contracts: | |||||||||||||||
Cash flow hedges | Other current assets | $ | 6,597 | $ | 977 | ||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign exchange currency contracts | Other current assets | 8,945 | 1,139 | ||||||||||||
Total | $ | 15,542 | $ | 2,116 | |||||||||||
LIABILITIES: | |||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Foreign exchange currency contracts: | |||||||||||||||
Cash flow hedges | Accrued expenses | $ | — | $ | 672 | ||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign exchange currency contracts | Accrued expenses | — | 1,040 | ||||||||||||
Interest rate swaps | Other long-term liabilities | 270 | 581 | ||||||||||||
Total derivatives not designated as hedging instruments | 270 | 1,621 | |||||||||||||
Total | $ | 270 | $ | 2,293 | |||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||
Cash Flow Hedges | |||||||||||||||
During fiscal 2015, the Company purchased U.S. dollar forward contracts in Canada and Europe totaling US$64.9 million and US$60.2 million, respectively, to hedge forecasted merchandise purchases and intercompany royalties that were designated as cash flow hedges. As of January 31, 2015, the Company had forward contracts outstanding for its European and Canadian operations of US$50.8 million and US$24.5 million, respectively, which are expected to mature over the next 11 months. At February 1, 2014, the Company had forward contracts outstanding for its European and Canadian operations of US$87.1 million and US$15.2 million, respectively, that were designated as cash flow hedges. | |||||||||||||||
The following table summarizes the gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings for fiscal 2015, fiscal 2014 and fiscal 2013 (in thousands): | |||||||||||||||
Gain | Location of | Gain (Loss) | |||||||||||||
Recognized in | Gain (Loss) | Reclassified from | |||||||||||||
OCI | Reclassified from | Accumulated OCI into Earnings | |||||||||||||
Accumulated OCI | |||||||||||||||
Year Ended Jan 31, 2015 | into Earnings(1) | Year Ended Jan 31, 2015 | |||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||
Foreign exchange currency contracts | $ | 6,962 | Cost of sales | $ | (272 | ) | |||||||||
Foreign exchange currency contracts | $ | 922 | Other income/expense | $ | 165 | ||||||||||
Gain Recognized in | Location of | Gain Reclassified from | |||||||||||||
OCI | Gain | Accumulated OCI into Earnings | |||||||||||||
Reclassified from | |||||||||||||||
Accumulated OCI | |||||||||||||||
Year Ended Feb 1, 2014 | into Earnings(1) | Year Ended Feb 1, 2014 | |||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||
Foreign exchange currency contracts | $ | 4,595 | Cost of sales | $ | 3,050 | ||||||||||
Foreign exchange currency contracts | $ | 370 | Other income/expense | $ | 9 | ||||||||||
Gain Recognized in | Location of | Gain | |||||||||||||
OCI | Gain | Reclassified from | |||||||||||||
Reclassified from | Accumulated OCI into Earnings | ||||||||||||||
Accumulated OCI | |||||||||||||||
Year Ended Feb 2, 2013 | into Earnings(1) | Year Ended Feb 2, 2013 | |||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||
Foreign exchange currency contracts | $ | 2,126 | Cost of sales | $ | 8,700 | ||||||||||
Foreign exchange currency contracts | $ | 105 | Other income/expense | $ | 628 | ||||||||||
________________________________________________________________________ | |||||||||||||||
-1 | The ineffective portion was immaterial during fiscal 2015, fiscal 2014 and fiscal 2013 and was recorded in net earnings and included in interest income/expense. | ||||||||||||||
As of January 31, 2015, accumulated other comprehensive income (loss) included a net unrealized gain of approximately $7.2 million, net of tax, which will be recognized in cost of product sales or other income over the following 12 months, at the then current values on a pre-tax basis, which can be different than the current year-end values. | |||||||||||||||
The following table summarizes net after-tax derivative activity recorded in accumulated other comprehensive income (loss) (in thousands): | |||||||||||||||
Year Ended Jan 31, 2015 | Year Ended Feb 1, 2014 | ||||||||||||||
Beginning balance loss | $ | (113 | ) | $ | (1,782 | ) | |||||||||
Net gains from changes in cash flow hedges | 6,734 | 4,092 | |||||||||||||
Net (gains) losses reclassified to earnings | 536 | (2,423 | ) | ||||||||||||
Ending balance gain (loss) | $ | 7,157 | $ | (113 | ) | ||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||
As of January 31, 2015, the Company had euro foreign currency contracts to purchase US$59.3 million expected to mature over the next 11 months and Canadian dollar foreign currency contracts to purchase US$19.9 million expected to mature over the next five months. | |||||||||||||||
At February 1, 2014, the Company had euro foreign currency contracts to purchase US$111.8 million and Canadian dollar foreign currency contracts to purchase US$13.8 million. | |||||||||||||||
The following table summarizes the gains (losses) before taxes recognized on the derivative instruments not designated as hedging instruments in other income and expense for fiscal 2015, fiscal 2014 and fiscal 2013 (in thousands): | |||||||||||||||
Location of | Gain (Loss) Recognized in Earnings | ||||||||||||||
Gain (Loss) | |||||||||||||||
Recognized in | |||||||||||||||
Earnings | Year Ended Jan 31, 2015 | Year Ended Feb 1, 2014 | Year Ended Feb 2, 2013 | ||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign exchange currency contracts | Other income/expense | $ | 14,723 | $ | 1,843 | $ | (20 | ) | |||||||
Interest rate swaps | Other income/expense | $ | 242 | $ | 238 | $ | 166 | ||||||||
Share_Repurchase_Program
Share Repurchase Program | 12 Months Ended |
Jan. 31, 2015 | |
Equity [Abstract] | |
Share Repurchase Program | Share Repurchase Program |
On March 14, 2011, the Company’s Board of Directors authorized a program to repurchase, from time-to-time and as market and business conditions warrant, up to $250 million of the Company’s common stock (the “2011 Share Repurchase Program”). On June 26, 2012, the Company’s Board of Directors authorized a new program to repurchase, from time-to-time and as market and business conditions warrant, up to $500 million of the Company’s common stock (the “2012 Share Repurchase Program”). The 2012 Share Repurchase Program was in addition to the 2011 Share Repurchase Program. Repurchases under programs may be made on the open market or in privately negotiated transactions, pursuant to Rule 10b5-1 trading plans or other available means. There is no minimum or maximum number of shares to be repurchased under programs and programs may be discontinued at any time, without prior notice. As of January 31, 2015, the Company had remaining authority under the 2012 Share Repurchase Program to purchase $495.8 million of its common stock and no remaining authority to purchase shares under the 2011 Share Repurchase Program. The Company made no share repurchases during fiscal 2015. During fiscal 2014, the Company repurchased a total of 882,551 shares under the 2011 and 2012 Share Repurchase Programs at an aggregate cost of $22.1 million. During fiscal 2013, the Company repurchased 5,036,418 shares under the 2011 Share Repurchase Program at an aggregate cost of $140.1 million. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
On March 18, 2015, the Company announced a regular quarterly cash dividend of $0.225 per share on the Company’s common stock. The cash dividend will be paid on April 17, 2015 to shareholders of record as of the close of business on April 1, 2015. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II | |||||||||||||||
GUESS?, INC. AND SUBSIDIARIES | ||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
Years Ended January 31, 2015, February 1, 2014 and February 2, 2013 | ||||||||||||||||
(in thousands) | ||||||||||||||||
Balance at | Costs | Deductions and | Balance | |||||||||||||
Beginning | Charged | Write-offs | at End of Period | |||||||||||||
of Period | (Credited) to Expenses | |||||||||||||||
Description | ||||||||||||||||
As of January 31, 2015 | ||||||||||||||||
Allowance for accounts receivable | $ | 20,118 | $ | 28,826 | $ | (32,891 | ) | $ | 16,053 | |||||||
Allowance for royalties receivable | 409 | (156 | ) | — | 253 | |||||||||||
Allowance for sales returns | 20,284 | 65,333 | (67,890 | ) | 17,727 | |||||||||||
Total | $ | 40,811 | $ | 94,003 | $ | (100,781 | ) | $ | 34,033 | |||||||
As of February 1, 2014 | ||||||||||||||||
Allowance for accounts receivable | $ | 20,588 | $ | 32,339 | $ | (32,809 | ) | $ | 20,118 | |||||||
Allowance for royalties receivable | 294 | 190 | (75 | ) | 409 | |||||||||||
Allowance for sales returns | 20,757 | 98,112 | (98,585 | ) | 20,284 | |||||||||||
Total | $ | 41,639 | $ | 130,641 | $ | (131,469 | ) | $ | 40,811 | |||||||
As of February 2, 2013 | ||||||||||||||||
Allowance for accounts receivable | $ | 19,423 | $ | 39,322 | $ | (38,157 | ) | $ | 20,588 | |||||||
Allowance for royalties receivable | 402 | (108 | ) | — | 294 | |||||||||||
Allowance for sales returns | 18,306 | 83,007 | (80,556 | ) | 20,757 | |||||||||||
Total | $ | 38,131 | $ | 122,221 | $ | (118,713 | ) | $ | 41,639 | |||||||
Description_of_the_Business_an1
Description of the Business and Summary of Significant Accounting Policies and Practices (Policies) | 12 Months Ended | |
Jan. 31, 2015 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Fiscal Year | Fiscal Year | |
The Company operates on a 52/53-week fiscal year calendar, which ends on the Saturday nearest to January 31 of each year. All references herein to “fiscal 2015,” “fiscal 2014” and “fiscal 2013” represent the results of the 52-week fiscal years ended January 31, 2015 and February 1, 2014 and the 53-week fiscal year ended February 2, 2013, respectively. The additional week in fiscal 2013 occurred during the fourth quarter ended February 2, 2013. References to “fiscal 2016” represent the 52-week fiscal year ending January 30, 2016. | ||
Reclassifications | Reclassifications | |
The Company has made certain reclassifications to the consolidated financial statements and related disclosures for the years ended February 1, 2014 and February 2, 2013 to conform to current period presentation. These reclassifications had no impact on previously reported results from operations or net cash provided by operating activities. | ||
Principles of Consolidation | Principles of Consolidation | |
The consolidated financial statements include the accounts of Guess?, Inc., its wholly-owned direct and indirect subsidiaries and its majority-owned subsidiaries. Accordingly, all references herein to “Guess?, Inc.” include the consolidated results of the Company and its subsidiaries. All intercompany accounts and transactions are eliminated during the consolidation process. | ||
Use of Estimates | Use of Estimates | |
The preparation of the financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosed in the accompanying notes. Significant areas requiring the use of management estimates relate to the accounts receivable allowances, sales return allowances, gift card and loyalty accruals, valuation of inventories, share-based compensation, recoverability of deferred taxes, unrecognized tax benefits, the useful life of assets for depreciation and amortization, evaluation of asset impairment, pension obligations, workers compensation and medical self-insurance expense and accruals, litigation reserves and restructuring expense and accruals. Actual results could differ from those estimates. | ||
Business Segment Reporting | Business Segment Reporting | |
Where applicable, the Company reports information about business segments and related disclosures about products and services, geographic areas and major customers. The Company’s businesses are grouped into five reportable segments for management and internal financial reporting purposes: North American Retail, Europe, Asia, North American Wholesale and Licensing. The Company’s operating segments are the same as its reportable segments. Management evaluates segment performance based primarily on revenues and earnings (loss) from operations before restructuring charges, if any. The Company believes this segment reporting reflects how its five business segments are managed and each segment’s performance is evaluated by the Company’s chief operating decision maker to assess performance and make resource allocation decisions. The North American Retail segment includes the Company’s retail and e-commerce operations in North America and its retail operations in Central and South America. The Europe segment includes the Company’s wholesale, retail and e-commerce operations in Europe and the Middle East. The Asia segment includes the Company’s wholesale, retail and e-commerce operations in Asia. The North American Wholesale segment includes the Company’s wholesale operations in North America and Central and South America. The Licensing segment includes the worldwide licensing operations of the Company. The business segment operating results exclude corporate overhead costs, which consist of shared costs of the organization, and restructuring charges. These costs are presented separately and generally include, among other things, the following unallocated corporate costs: accounting and finance, executive compensation, facilities, global advertising and marketing, human resources, information technology and legal. Information regarding these segments is summarized in Note 17. | ||
Revenue Recognition - General | Revenue Recognition | |
General | ||
The Company recognizes retail operations revenue at the point of sale and wholesale operations revenue from the sale of merchandise when products are shipped and the customer takes title and assumes risk of loss, collection of the relevant receivable is reasonably assured, pervasive evidence of an arrangement exists, and the sales price is fixed or determinable. Revenue from our e-commerce operations, including shipping fees, is recognized based on the estimated customer receipt date. The Company accrues for estimated sales returns and other allowances in the period in which the related revenue is recognized. To recognize the financial impact of sales returns, the Company estimates the amount of goods that will be returned based on historical experience and reduces sales and cost of sales accordingly. Sales taxes and value added taxes collected from customers and remitted directly to governmental authorities are excluded from net revenues. | ||
Net Royalty Revenue | Net Royalty Revenue | |
Royalty revenue is based upon a percentage, as defined in the underlying agreement, of the licensee’s actual net sales or minimum net sales, whichever is greater. The Company may receive special payments in consideration of the grant of license rights. These payments are recognized ratably as revenue over the term of the license agreement. The unrecognized portion of upfront payments is included in deferred royalties in accrued expenses and other long-term liabilities depending on the short or long-term nature of the payments to be recognized. | ||
Gift Cards | Gift Cards | |
Gift card breakage is income recognized due to the non-redemption of a portion of gift cards sold by the Company for which a liability was recorded in prior periods. Gifts cards are mainly used in the U.S. and Canada. The Company issues gift cards through one of its subsidiaries and is not required by law to escheat the value of unredeemed gift cards to the state in which the subsidiary is domiciled. Estimated breakage amounts are accounted for under the redemption recognition method and are classified as additional net revenues as the gift cards are redeemed. The Company’s gift card breakage rate is approximately 5.7% and 4.7% for the U.S. retail business and Canadian retail business, respectively, based upon historical redemption patterns, which represents the cumulative estimated amount of gift card breakage from the inception of the electronic gift card program in late 2002. Based upon historical redemption trends, the Company recognizes estimated gift card breakage as a component of net revenue in proportion to actual gift card redemptions, over the period that remaining gift card values are redeemed. In fiscal 2015, fiscal 2014 and fiscal 2013, the Company recognized $1.1 million, $0.8 million and $0.5 million of gift card breakage to revenue, respectively. Any future revisions to the estimated breakage rate may result in changes in the amount of breakage income recognized in future periods. | ||
Loyalty Programs | Loyalty Programs | |
The Company launched customer loyalty programs in North America for its GUESS? factory outlet, G by GUESS, GUESS?, and MARCIANO stores in March 2013, July 2009, August 2008 and September 2007, respectively. The GUESS? factory outlet loyalty program was included in the GUESS? loyalty program since its inception in March 2013. The GUESS? and MARCIANO loyalty programs were merged in May 2009. Under the programs, customers accumulate points based on purchase activity. Once a loyalty program member achieves a certain point level, the member earns awards that may only be redeemed for merchandise. In all of the programs, unredeemed points generally expire after six months without additional purchase activity and unredeemed awards generally expire after two months. The Company uses historical redemption rates to estimate the value of future award redemptions which are accrued in current liabilities and recorded as a reduction of net revenue in the period which the related revenue is recognized. The aggregate dollar value of the loyalty program accruals included in accrued expenses was $4.5 million and $4.2 million as of January 31, 2015 and February 1, 2014, respectively. Future revisions to the estimated liability may result in changes to net revenue. | ||
Classification of Certain Costs and Expenses | Classification of Certain Costs and Expenses | |
The Company includes inbound freight charges, purchasing costs and related overhead, retail store occupancy costs including rent and depreciation and a portion of the Company’s distribution costs related to its retail business in cost of product sales. Distribution costs related primarily to the wholesale business are included in selling, general and administrative (“SG&A”) expenses and amounted to $28.8 million, $31.7 million and $36.2 million for fiscal 2015, fiscal 2014 and fiscal 2013, respectively. The Company also includes store selling, selling and merchandising, advertising, design and other corporate overhead costs as a component of SG&A expenses. | ||
The Company classifies amounts billed to customers for shipping fees as revenues and classifies costs related to shipping as cost of product sales in the accompanying consolidated statements of income. | ||
Advertising and Marketing Costs | Advertising and Marketing Costs | |
The Company expenses the cost of advertising as incurred. | ||
Share-Based Compensation | Share-Based Compensation | |
The Company recognizes compensation expense for all share-based awards granted based on the grant date fair value. The fair value of each stock option is estimated on the grant date using the Black-Scholes option-pricing model and involves several assumptions, including the risk-free interest rate, expected volatility, dividend yield, expected life and forfeiture rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect for the expected term of the option at the time of grant. The expected volatility is determined based on an average of both historical volatility and implied volatility. Implied volatility is derived from exchange traded options on the Company’s common stock. The expected dividend yield is based on the Company’s history and expectations of dividend payouts. The expected life is determined based on historical trends. The expected forfeiture rate is determined based on historical data. Compensation expense for nonvested stock options and stock awards is recognized on a straight-line basis over the vesting period. | ||
In addition, the Company has granted certain nonvested stock awards/units and stock options that require the recipient to achieve certain minimum performance targets in order for these awards to vest. If the minimum performance targets have not been achieved or are not expected to be achieved, no expense is recognized during the period. | ||
Foreign Currency - Translation and Transaction Gains and Losses | Foreign Currency | |
Foreign Currency Translation Adjustment | ||
The local selling currency is typically the functional currency for all of the Company’s significant international operations. In accordance with authoritative guidance, assets and liabilities of the Company’s foreign operations are translated from foreign currencies into U.S. dollars at period-end rates, while income and expenses are translated at the weighted average exchange rates for the period. The related translation adjustments are reflected as a foreign currency translation adjustment in accumulated other comprehensive income (loss) within stockholders’ equity. In addition, the Company records foreign currency translation adjustments related to its noncontrolling interests within stockholders’ equity. Periodically, the Company may also use foreign currency forward contracts to hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries (see below). Changes in the fair values of these foreign currency forward contracts, designated as net investment hedges, are recorded in foreign currency translation adjustment as a component of accumulated other comprehensive income (loss) within stockholders’ equity. The total foreign currency translation adjustment decreased stockholders’ equity by $116.7 million, from an accumulated foreign currency translation loss of $7.7 million as of February 1, 2014 to an accumulated foreign currency translation loss of $124.4 million as of January 31, 2015. | ||
Foreign Currency Transaction Gains and Losses | ||
Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency, including gains and losses on foreign currency contracts (see below), are included in the consolidated statements of income. | ||
Forward Contracts Designated as Hedging Instruments | Forward Contracts Designated as Hedging Instruments | |
The Company operates in foreign countries, which exposes it to market risk associated with foreign currency exchange rate fluctuations. Various transactions that occur primarily in Europe, Canada, South Korea and Mexico are denominated in U.S. dollars and British pounds and thus are exposed to earnings risk as a result of exchange rate fluctuations when converted to their functional currencies. These types of transactions include U.S. dollar denominated purchases of merchandise and U.S. dollar and British pound denominated intercompany liabilities. In addition, certain operating expenses, tax liabilities and pension-related liabilities are denominated in Swiss francs and are exposed to earnings risk as a result of exchange rate fluctuations when converted to the functional currency. The Company has entered into certain forward contracts to hedge the risk of a portion of these anticipated foreign currency transactions against foreign currency rate fluctuations. The Company has elected to apply the hedge accounting rules in accordance with authoritative guidance for certain of these hedges. The Company does not hedge all transactions denominated in foreign currency. The Company may also hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries. | ||
Changes in the fair value of the U.S. dollar/euro and U.S. dollar/Canadian dollar forward contracts for anticipated U.S. dollar merchandise purchases designated as cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in cost of product sales in the period which approximates the time the hedged merchandise inventory is sold. Changes in the fair value of U.S. dollar/euro forward contracts for U.S. dollar intercompany royalties designated as cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in other income and expense in the period in which the royalty expense is incurred. Changes in the fair value of any U.S. dollar/euro dollar forward contracts designated as net investment hedges are recorded in foreign currency translation adjustment as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are not recognized in earnings until the sale or liquidation of the hedged net investment. | ||
Forward Contracts Not Designated as Hedging Instruments | Forward Contracts Not Designated as Hedging Instruments | |
The Company also has forward contracts that are not designated as hedging instruments for accounting purposes. Changes in fair value of forward contracts not designated as hedging instruments are reported in net earnings as part of other income and expense. | ||
Income Taxes | Income Taxes | |
The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred income taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. | ||
The Company accounts for uncertainty in income taxes in accordance with authoritative guidance, which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company also follows authoritative guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. | ||
Earnings Per Share | Earnings Per Share | |
Basic earnings per share represents net earnings attributable to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share represents net earnings attributable to common stockholders divided by the weighted average number of common shares outstanding, inclusive of the dilutive impact of common equivalent shares outstanding during the period. However, nonvested restricted stock awards (referred to as participating securities) are excluded from the dilutive impact of common equivalent shares outstanding in accordance with authoritative guidance under the two-class method since the nonvested restricted stockholders are entitled to participate in dividends declared on common stock as if the shares were fully vested and hence are deemed to be participating securities. Under the two-class method, earnings attributable to nonvested restricted stockholders are excluded from net earnings attributable to common stockholders for purposes of calculating basic and diluted earnings per common share. However, net losses are not allocated to nonvested restricted stockholders since they are not contractually obligated to share in the losses of the Company. | ||
Comprehensive Income (Loss) | Comprehensive Income (Loss) | |
Comprehensive income (loss) consists of net earnings, foreign currency translation adjustments, the effective portion of the change in the fair value of cash flow hedges, unrealized gains or losses on available-for-sale securities and defined benefit plan impact from plan amendment, prior service credit or cost amortization and actuarial valuation gains or losses and related amortization. Comprehensive income (loss) is presented in the consolidated statements of comprehensive income (loss). | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. | ||
Investment Securities | Investment Securities | |
The Company accounts for its investment securities in accordance with authoritative guidance which requires investments to be classified into one of three categories based on management’s intent: held-to-maturity securities, available-for-sale securities and trading securities. Held-to-maturity securities are recorded at their amortized cost. Available-for-sale securities are recorded at fair value with unrealized gains and losses reported as a separate component of stockholders’ equity. Trading securities are recorded at market value with unrealized gains and losses reported in net earnings. The appropriate classification of investment securities is determined at the time of purchase and reevaluated at each balance sheet date. The Company currently accounts for its investment securities as available-for-sale. There were minimal investment securities included in other assets in the Company’s consolidated balance sheet as of January 31, 2015. | ||
The Company periodically evaluates investment securities for impairment using both qualitative and quantitative criteria such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and the Company’s ability and intent to hold the investment for a period of time which may be sufficient for anticipated recovery in market value. | ||
Concentration of Credit and Liquidity Risk | Concentration of Credit and Liquidity Risk | |
Cash used primarily for working capital purposes is maintained with various major financial institutions. The Company performs evaluations of the relative credit standing of these financial institutions in order to limit the amount of asset and liquidity exposure with any institution. Excess cash and cash equivalents, which represent the majority of the Company’s outstanding cash and cash equivalents balance, are held primarily in overnight deposit and short-term time deposit accounts and three diversified money market funds. The money market funds are AAA rated by national credit rating agencies and are generally comprised of high-quality, liquid investments. | ||
The Company is also exposed to concentrations of credit risk through its accounts receivable balances. The Company extends credit to corporate customers based upon an evaluation of the customer’s financial condition and credit history and generally requires no collateral but does obtain credit insurance when considered appropriate. As of January 31, 2015, approximately 53% of the Company’s total net trade accounts receivable and 66% of its European net trade receivables were subject to credit insurance coverage, certain bank guarantees or letters of credit for collection purposes. The Company’s credit insurance coverage contains certain terms and conditions specifying deductibles and annual claim limits. The Company maintains allowances for doubtful accounts for estimated losses that result from the inability of its wholesale customers to make their required payments. The Company bases its allowances on analysis of the aging of accounts receivable at the date of the financial statements, assessments of historical collection trends, an evaluation of the impact of current economic conditions and whether the Company has obtained credit insurance or other guarantees. The Company’s corporate customers are principally located throughout Europe, North America and Asia, and their ability to pay amounts due to the Company may be dependent on the prevailing economic conditions of their geographic region. However, such credit risk is considered limited due to the Company’s large customer base. Management performs regular evaluations concerning the ability of its customers to satisfy their obligations and records a provision for doubtful accounts based on these evaluations. | ||
Inventories | Inventories | |
Inventories are valued at the lower of cost (primarily weighted average method) or market. The Company continually evaluates its inventories by assessing slow moving product as well as prior seasons’ inventory. Market value of aged inventory is estimated based on historical sales trends for each product line category, the impact of market trends, an evaluation of economic conditions, available liquidation channels and the value of current orders relating to the future sales of this type of inventory. | ||
Depreciation and Amortization | Depreciation and Amortization | |
Depreciation and amortization of property and equipment, which includes depreciation of the property under the capital lease, and purchased intangibles are provided using the straight-line method over the following useful lives: | ||
Building and building improvements including properties under capital lease | 10 to 33 years | |
Land improvements | 5 years | |
Furniture, fixtures and equipment | 2 to 10 years | |
Purchased intangibles | 4 to 20 years | |
Leasehold improvements are amortized over the lesser of the estimated useful life of the asset or the term of the lease, unless the renewal is reasonably assured. Construction in progress is not depreciated until the related asset is completed and placed in service. | ||
Long-Lived Assets | Long-Lived Assets | |
Long-lived assets, such as property and equipment, and purchased intangibles subject to amortization, are reviewed for impairment quarterly or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company considers each individual store or concession as an asset group for impairment testing, which is the lowest level at which individual cash flows can be identified. The asset group includes leasehold improvements, furniture, fixtures and equipment, computer hardware and software and certain long-term security deposits and lease acquisition costs. The Company reviews retail locations in penetrated markets for impairment risk once the locations have been opened for at least one year in their current condition, or sooner as changes in circumstances require. The Company believes that waiting one year allows a store or concession to reach a maturity level where a more comprehensive analysis of financial performance can be performed. The Company evaluates impairment risk for retail locations in new markets, where the Company is in the early stages of establishing its presence, once the locations have been opened for at least two years. The Company believes that waiting two years allows for brand awareness to be established. The Company also evaluates impairment risk for retail locations that are expected to be closed in the foreseeable future. | ||
An asset is considered to be impaired if the Company determines that the carrying value may not be recoverable based upon its assessment of the asset’s ability to continue to generate earnings from operations and positive cash flow in future periods or if significant changes in the Company’s strategic business objectives and utilization of the assets occurred. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the estimated fair value, which is determined based on discounted future cash flows. The impairment loss calculations require management to apply judgment in estimating future cash flows and the discount rates that reflect the risk inherent in future cash flows. Future expected cash flows for store and concession assets are based on management’s estimates of future cash flows over the remaining lease period or expected life, if shorter. For expected store and concession closures, the Company will evaluate whether it is necessary to shorten the useful life for any of the assets within the respective asset group. The Company will use this revised useful life when estimating the asset group’s future cash flows. The Company considers historical trends, expected future business trends and other factors when estimating the future cash flow for each retail location. The Company also considers factors such as: the local environment for each retail location, including mall traffic and competition; the Company’s ability to successfully implement strategic initiatives; and the ability to control variable costs such as cost of sales and payroll and, in some cases, renegotiate lease costs. The estimated cash flows used for this nonrecurring fair value measurement are considered a Level 3 input as defined in Note 20. If actual results are not consistent with the assumptions and judgments used in estimating future cash flows and asset fair values, there may be additional exposure to future impairment losses that could be material to the Company’s results of operations. | ||
See Note 5 for further details on asset impairments. | ||
Goodwill | Goodwill | |
Goodwill is tested annually for impairment or more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. This determination is made at the reporting unit level which may be either an operating segment or one level below an operating segment if discrete financial information is available. Two or more reporting units within an operating segment may be aggregated for impairment testing if they have similar economic characteristics. The Company has identified its North American Retail and North American Wholesale segments and its European wholesale and European retail components of its Europe segment as separate reporting units for goodwill impairment testing since each have different economic characteristics. In accordance with authoritative guidance, the Company first assesses qualitative factors relevant in determining whether it is more likely than not that the fair value of its reporting units are less than their carrying amounts. Based on this analysis, the Company determines whether it is necessary to perform a quantitative impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the amount of any impairment loss to be recognized for that reporting unit is determined using two steps. First, the Company determines the fair value of the reporting unit using a discounted cash flow analysis, which requires unobservable inputs (Level 3) within the fair value hierarchy as defined in Note 20. These inputs include selection of an appropriate discount rate and the amount and timing of expected future cash flows. Second, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill and other intangibles over the implied fair value. The implied fair value is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation, in accordance with authoritative guidance. | ||
Defined Benefit Plans | Defined Benefit Plans | |
In accordance with authoritative guidance for defined benefit pension and other postretirement plans, an asset for a plan’s overfunded status or a liability for a plan’s underfunded status is recognized in the consolidated balance sheets; plan assets and obligations that determine the plan’s funded status are measured as of the end of the Company’s fiscal year; and changes in the funded status of defined benefit postretirement plans are recognized in the year in which they occur. Such changes are reported in other comprehensive income (loss) and as a separate component of stockholders’ equity. | ||
The Company’s pension obligations and related costs are calculated using actuarial concepts, within the authoritative guidance framework, and are considered Level 3 inputs as defined in Note 20. The life expectancy, estimated retirement age, discount rate, estimated future compensation and expected return on plan assets are important elements of expense and/or liability measurement. These critical assumptions are evaluated annually which enables expected future payments for benefits to be stated at present value on the measurement date. If actual results are not consistent with actuarial assumptions, the amounts recognized for the defined benefit plans could change significantly. | ||
Deferred Rent and Lease Incentives | Deferred Rent and Lease Incentives | |
When a lease includes lease incentives (such as a rent holiday) or requires fixed escalations of the minimum lease payments, rental expense is recognized on a straight-line basis over the term of the lease and the difference between the average rental amount charged to expense and amounts payable under the lease is included in deferred rent and lease incentives in the accompanying consolidated balance sheets. For construction allowances, the Company records a deferred lease credit on the consolidated balance sheets and amortizes the deferred lease credit as a reduction of rent expense in the consolidated statements of income over the term of the leases. | ||
Litigation Reserves | Litigation Reserves | |
Estimated amounts for claims that are probable and can be reasonably estimated are recorded as liabilities in the consolidated balance sheets. The likelihood of a material change in these estimated reserves would be dependent on new claims as they may arise and the expected probable favorable or unfavorable outcome of each claim. As additional information becomes available, the Company assesses the potential liability related to new claims and existing claims and revises estimates as appropriate. As new claims arise or existing claims evolve, such revisions in estimates of the potential liability could materially impact the results of operations and financial position. | ||
New Accounting Guidance | In July 2013, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which requires that an unrecognized tax benefit be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar loss or a tax credit carryforward, if specific criteria are met. The Company adopted this guidance effective February 2, 2014. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | |
In April 2014, the FASB issued authoritative guidance which raises the threshold for disposals to qualify as discontinued operations. Under this new guidance, a discontinued operation is (1) a component of an entity or group of components that have been disposed of or are classified as held for sale and represent a strategic shift that has or will have a major effect on an entity’s operations and financial results, or (2) an acquired business that is classified as held for sale on the acquisition date. This guidance also requires expanded or new disclosures for discontinued operations, individually material disposals that do not meet the definition of a discontinued operation, an entity’s continuing involvement with a discontinued operation following disposal and retained equity method investments in a discontinued operation. This guidance is effective for fiscal periods beginning after December 15, 2014, which will be the Company’s first quarter of fiscal 2016. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements unless the Company disposes of a business that meets the updated definition of discontinued operations. | ||
In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2016, which will be the Company’s first quarter of fiscal 2018, and allows for either full retrospective or modified retrospective adoption. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. | ||
In August 2014, the FASB issued authoritative guidance that requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern and requires additional disclosures if certain criteria are met. This guidance is effective for fiscal periods ending after December 15, 2016, which will be the Company’s fourth quarter of fiscal 2017, with early adoption permitted. The adoption of this guidance is not expected to impact the Company’s consolidated financial statements or related disclosures. | ||
In February 2015, the FASB issued authoritative guidance which modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. This guidance is effective for fiscal periods beginning after December 15, 2015, which will be the Company’s first quarter of fiscal 2017, and allows for either full retrospective or modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. |
Description_of_the_Business_an2
Description of the Business and Summary of Significant Accounting Policies and Practices (Tables) | 12 Months Ended | |
Jan. 31, 2015 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Schedule of useful lives of property and equipment and purchased intangibles | Depreciation and amortization of property and equipment, which includes depreciation of the property under the capital lease, and purchased intangibles are provided using the straight-line method over the following useful lives: | |
Building and building improvements including properties under capital lease | 10 to 33 years | |
Land improvements | 5 years | |
Furniture, fixtures and equipment | 2 to 10 years | |
Purchased intangibles | 4 to 20 years |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Schedule of accounts receivable | Accounts receivable is summarized as follows (in thousands): | |||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||
Trade | $ | 232,768 | $ | 291,411 | ||||
Royalty | 10,118 | 16,372 | ||||||
Other | 5,239 | 8,174 | ||||||
248,125 | 315,957 | |||||||
Less allowance for doubtful accounts | 31,920 | 39,392 | ||||||
$ | 216,205 | $ | 276,565 | |||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of inventories | Inventories consist of the following (in thousands): | |||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||
Raw materials | $ | 4,548 | $ | 10,585 | ||||
Work in progress | 77 | 977 | ||||||
Finished goods | 314,453 | 339,337 | ||||||
$ | 319,078 | $ | 350,899 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Schedule of property and equipment | Property and equipment is summarized as follows (in thousands): | |||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||
Land and land improvements | $ | 2,866 | $ | 2,866 | ||||
Building and building improvements | 3,471 | 4,063 | ||||||
Leasehold improvements | 386,374 | 409,582 | ||||||
Furniture, fixtures and equipment | 356,960 | 383,127 | ||||||
Construction in progress | 11,417 | 9,706 | ||||||
Properties under capital lease | 19,190 | 22,931 | ||||||
780,278 | 832,275 | |||||||
Less accumulated depreciation and amortization | 520,754 | 507,669 | ||||||
$ | 259,524 | $ | 324,606 | |||||
Schedule of impairments to long-lived assets, excluding impairment charges related to restructuring activities | Impairments to long-lived assets, excluding impairment charges related to restructuring activities during fiscal 2014, are summarized as follows (in thousands): | |||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||
Aggregate carrying value of all long-lived assets impaired | $ | 26,106 | $ | 8,928 | ||||
Less impairment charges | 24,766 | 8,821 | ||||||
Aggregate remaining fair value of all long-lived assets impaired | $ | 1,340 | $ | 107 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Summary of goodwill activity by business segment | Goodwill activity is summarized by business segment as follows (in thousands): | |||||||||||||||
North American | Europe | North American | Total | |||||||||||||
Retail | Wholesale | |||||||||||||||
Goodwill balance at February 2, 2013 | $ | 1,925 | $ | 27,362 | $ | 10,000 | $ | 39,287 | ||||||||
Adjustments: | ||||||||||||||||
Translation Adjustments | (85 | ) | (195 | ) | (15 | ) | (295 | ) | ||||||||
Goodwill balance at February 1, 2014 | 1,840 | 27,167 | 9,985 | 38,992 | ||||||||||||
Adjustments: | ||||||||||||||||
Disposal | — | (113 | ) | — | (113 | ) | ||||||||||
Translation Adjustments | (91 | ) | (4,639 | ) | (16 | ) | (4,746 | ) | ||||||||
Goodwill balance at January 31, 2015 | $ | 1,749 | $ | 22,415 | $ | 9,969 | $ | 34,133 | ||||||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Summary of accrued expenses | Accrued expenses are summarized as follows (in thousands): | |||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||
Accrued compensation and benefits | $ | 55,775 | $ | 68,354 | ||||
Sales and use taxes, property taxes and other indirect taxes | 20,874 | 23,126 | ||||||
Deferred royalties and other revenue | 15,490 | 15,787 | ||||||
Store credits, loyalty and gift cards | 9,745 | 9,738 | ||||||
Advertising | 9,368 | 7,853 | ||||||
Construction costs | 5,376 | 3,714 | ||||||
Professional fees | 4,988 | 5,871 | ||||||
Accrued rent | 2,378 | 9,607 | ||||||
Restructuring charges | 276 | 4,578 | ||||||
Income taxes | — | 11,823 | ||||||
Derivative financial instruments | — | 1,712 | ||||||
Other | 16,224 | 12,170 | ||||||
$ | 140,494 | $ | 174,333 | |||||
Borrowings_and_Capital_Lease_O1
Borrowings and Capital Lease Obligations (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Summary of borrowings and capital lease obligations | Borrowings and capital lease obligations are summarized as follows (in thousands): | |||||||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||||||
European capital lease, maturing quarterly through calendar 2016 | $ | 5,745 | $ | 8,637 | ||||||||
Other | 1,968 | 3,103 | ||||||||||
7,713 | 11,740 | |||||||||||
Less current installments | 1,548 | 4,160 | ||||||||||
Long-term capital lease obligations and other debt | $ | 6,165 | $ | 7,580 | ||||||||
Summary of maturities of capital lease obligations and debt | Maturities of capital lease obligations and debt as of January 31, 2015 are as follows (in thousands): | |||||||||||
Capital Lease | Debt | Total | ||||||||||
Fiscal 2016 | $ | 1,548 | $ | — | $ | 1,548 | ||||||
Fiscal 2017 | 4,197 | — | 4,197 | |||||||||
Fiscal 2018 | — | — | — | |||||||||
Fiscal 2019 | — | 626 | 626 | |||||||||
Fiscal 2020 | — | 1,342 | 1,342 | |||||||||
Thereafter | — | — | — | |||||||||
Total | $ | 5,745 | $ | 1,968 | $ | 7,713 | ||||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Restructuring Charges [Abstract] | ||||||||||||
Schedule of restructuring components and activity | The following table summarizes the components of the restructuring activities for fiscal 2015 and fiscal 2014 (in thousands): | |||||||||||
Severance | Impairment and Lease Termination | Total | ||||||||||
Balance at February 2, 2013 | $ | — | $ | — | $ | — | ||||||
Charges to operations | 9,206 | 3,236 | 12,442 | |||||||||
Non-cash write-offs | — | (1,717 | ) | (1,717 | ) | |||||||
Cash payments | (4,567 | ) | (1,492 | ) | (6,059 | ) | ||||||
Foreign currency and other adjustments | (61 | ) | (27 | ) | (88 | ) | ||||||
Balance at February 1, 2014 | $ | 4,578 | $ | — | $ | 4,578 | ||||||
Cash payments | (2,952 | ) | — | (2,952 | ) | |||||||
Foreign currency and other adjustments | (1,350 | ) | — | (1,350 | ) | |||||||
Balance at January 31, 2015 | $ | 276 | $ | — | $ | 276 | ||||||
Comprehensive_Income_Loss_Tabl
Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||
Schedule of changes in accumulated other comprehensive income (loss) | The changes in accumulated other comprehensive income (loss), net of related income taxes, for fiscal 2015 and fiscal 2014 are as follows (in thousands): | |||||||||||||||||||
Foreign Currency Translation Adjustment | Derivative Financial Instruments Designated as Cash Flow Hedges | Marketable Securities | Defined Benefit Plans | Total | ||||||||||||||||
Balance at February 2, 2013 | $ | 10,618 | $ | (1,782 | ) | $ | 110 | $ | (11,407 | ) | $ | (2,461 | ) | |||||||
Gains (losses) arising during the period | (17,838 | ) | 4,092 | (7 | ) | 3,815 | (9,938 | ) | ||||||||||||
Reclassification to net earnings for (gains) losses realized | 217 | (2,423 | ) | — | 804 | (1,402 | ) | |||||||||||||
Net other comprehensive income (loss) | (17,621 | ) | 1,669 | (7 | ) | 4,619 | (11,340 | ) | ||||||||||||
Balance at February 1, 2014 | $ | (7,003 | ) | $ | (113 | ) | $ | 103 | $ | (6,788 | ) | $ | (13,801 | ) | ||||||
Gains (losses) arising during the period | (114,566 | ) | 6,734 | (52 | ) | (6,356 | ) | (114,240 | ) | |||||||||||
Reclassification to net earnings for (gains) losses realized | — | 536 | (54 | ) | 494 | 976 | ||||||||||||||
Net other comprehensive income (loss) | (114,566 | ) | 7,270 | (106 | ) | (5,862 | ) | (113,264 | ) | |||||||||||
Balance at January 31, 2015 | $ | (121,569 | ) | $ | 7,157 | $ | (3 | ) | $ | (12,650 | ) | $ | (127,065 | ) | ||||||
Reclassifications out of accumulated other comprehensive income (loss) to net earnings | Details on reclassifications out of accumulated other comprehensive income (loss) to net earnings during fiscal 2015 and fiscal 2014 are as follows (in thousands): | |||||||||||||||||||
Location of (Gain) Loss | ||||||||||||||||||||
Reclassified from | ||||||||||||||||||||
Accumulated OCI | ||||||||||||||||||||
Year Ended | Year Ended | into Earnings | ||||||||||||||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||||||||||||||
Foreign currency translation adjustment: | ||||||||||||||||||||
Liquidation of investment in a foreign entity | $ | — | $ | 217 | Restructuring charges | |||||||||||||||
— | 217 | |||||||||||||||||||
Derivative financial instruments designated as cash flow hedges: | ||||||||||||||||||||
Foreign exchange currency contracts | 272 | (3,050 | ) | Cost of sales | ||||||||||||||||
Foreign exchange currency contracts | (165 | ) | (9 | ) | Other income/expense | |||||||||||||||
Less income tax effect | 429 | 636 | Income tax expense | |||||||||||||||||
536 | (2,423 | ) | ||||||||||||||||||
Marketable securities: | ||||||||||||||||||||
Available-for-sale securities | (87 | ) | — | Other income/expense | ||||||||||||||||
Less income tax effect | 33 | — | Income tax expense | |||||||||||||||||
(54 | ) | — | ||||||||||||||||||
Defined benefit plans: | ||||||||||||||||||||
Actuarial loss amortization | 1,002 | 1,108 | (1) | |||||||||||||||||
Prior service (credit) cost amortization | (233 | ) | 194 | (1) | ||||||||||||||||
Less income tax effect | (275 | ) | (498 | ) | Income tax expense | |||||||||||||||
494 | 804 | |||||||||||||||||||
Total reclassifications during the period | $ | 976 | $ | (1,402 | ) | |||||||||||||||
________________________________________________________________________ | ||||||||||||||||||||
-1 | These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. Refer to Note 12 for further information. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of income tax expense (benefit) | Income tax expense (benefit) is summarized as follows (in thousands): | |||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Federal: | ||||||||||||
Current | $ | 37,802 | $ | 61,239 | $ | 42,365 | ||||||
Deferred | (8,566 | ) | (20,294 | ) | 10,943 | |||||||
State: | ||||||||||||
Current | 6,242 | 6,202 | 5,853 | |||||||||
Deferred | (3,262 | ) | (1,627 | ) | 1,494 | |||||||
Foreign: | ||||||||||||
Current | 9,756 | 25,611 | 30,775 | |||||||||
Deferred | 3,852 | 4,117 | 7,698 | |||||||||
Total | $ | 45,824 | $ | 75,248 | $ | 99,128 | ||||||
Schedule of differences between actual income tax expense and expected income tax expense | Actual income tax expense differs from expected income tax expense obtained by applying the statutory federal income tax rate to earnings before income taxes as follows (in thousands): | |||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Computed “expected” tax expense | $ | 50,053 | $ | 81,536 | $ | 98,215 | ||||||
State taxes, net of federal benefit | 1,937 | 2,974 | 4,776 | |||||||||
Incremental foreign taxes less than federal statutory tax rate | (2,603 | ) | (10,107 | ) | (13,307 | ) | ||||||
Net tax settlements | — | — | 12,832 | |||||||||
Unrecognized tax benefit | 471 | 6,856 | 147 | |||||||||
Prior year tax adjustments | (2,955 | ) | (3,489 | ) | (2,300 | ) | ||||||
Other | (1,079 | ) | (2,522 | ) | (1,235 | ) | ||||||
Total | $ | 45,824 | $ | 75,248 | $ | 99,128 | ||||||
Schedule of allocation of total income tax expense (benefit) | Total income tax expense (benefit) was allocated as follows (in thousands): | |||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Operations | $ | 45,824 | $ | 75,248 | $ | 99,128 | ||||||
Stockholders’ equity | (660 | ) | 3,673 | 3,703 | ||||||||
Total income taxes | $ | 45,164 | $ | 78,921 | $ | 102,831 | ||||||
Schedule of tax effects of the components of other comprehensive income (loss) | The tax effects of the components of other comprehensive income (loss) were allocated as follows (in thousands): | |||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Derivative financial instruments designated as cash flow hedges | $ | 721 | $ | 237 | $ | (1,056 | ) | |||||
Marketable securities | (61 | ) | (4 | ) | 85 | |||||||
Defined benefit plans | (2,335 | ) | 2,963 | 2,855 | ||||||||
Total income tax expense (benefit) | $ | (1,675 | ) | $ | 3,196 | $ | 1,884 | |||||
Schedule of total earnings before income tax expense and noncontrolling interests | Total earnings before income tax expense and noncontrolling interests were comprised of the following (in thousands): | |||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Domestic operations | $ | 98,036 | $ | 140,153 | $ | 169,755 | ||||||
Foreign operations | 44,972 | 92,806 | 110,859 | |||||||||
Earnings before income tax expense and noncontrolling interests | $ | 143,008 | $ | 232,959 | $ | 280,614 | ||||||
Schedule of tax effects of temporary differences that give rise to significant portions of current and non-current deferred tax assets and deferred tax liabilities | The tax effects of temporary differences that give rise to significant portions of current and non-current deferred tax assets and deferred tax liabilities as of January 31, 2015 and February 1, 2014 are presented below (in thousands): | |||||||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||||||
Deferred tax assets: | ||||||||||||
Defined benefit plans | $ | 23,901 | $ | 21,716 | ||||||||
Deferred income | 15,953 | 11,261 | ||||||||||
Rent expense | 12,672 | 14,986 | ||||||||||
Deferred compensation | 12,416 | 10,692 | ||||||||||
Lease incentives | 6,179 | 8,180 | ||||||||||
Net operating losses | 6,122 | 2,133 | ||||||||||
Bad debt reserve | 5,175 | 9,526 | ||||||||||
Uniform capitalization | 1,927 | 2,162 | ||||||||||
Excess of book over tax depreciation/amortization | 1,667 | — | ||||||||||
Accrued bonus | 1,342 | 2,954 | ||||||||||
Other | 15,453 | 13,111 | ||||||||||
Total deferred tax assets | 102,807 | 96,721 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Goodwill amortization | (3,627 | ) | (3,693 | ) | ||||||||
Excess of tax over book depreciation/amortization | — | (9,310 | ) | |||||||||
Other | (3,872 | ) | (492 | ) | ||||||||
Valuation allowance | (7,501 | ) | (3,853 | ) | ||||||||
Net deferred tax assets | $ | 87,807 | $ | 79,373 | ||||||||
Schedule of changes that occurred in the amount of gross unrecognized tax benefit excluding interest and penalties | A reconciliation of the beginning and ending amount of gross unrecognized tax benefit (excluding interest and penalties) is as follows (in thousands): | |||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Beginning balance | $ | 10,900 | $ | 4,527 | $ | 16,045 | ||||||
Additions: | ||||||||||||
Tax positions related to the prior year | 4,224 | — | — | |||||||||
Tax positions related to the current year | 1,722 | 7,501 | — | |||||||||
Reductions: | ||||||||||||
Tax positions related to the prior year | (55 | ) | (1,128 | ) | (568 | ) | ||||||
Tax positions related to the current year | (91 | ) | — | — | ||||||||
Settlements | (599 | ) | — | (10,950 | ) | |||||||
Expiration of statutes of limitation | (2,461 | ) | — | — | ||||||||
Ending balance | $ | 13,640 | $ | 10,900 | $ | 4,527 | ||||||
Defined_Benefit_Plans_Tables
Defined Benefit Plans (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||
Schedule of net periodic defined benefit pension cost and other charges to comprehensive income (loss) | The components of net periodic defined benefit pension cost to comprehensive income (loss) for fiscal 2015, fiscal 2014 and fiscal 2013 related to the SERP were as follows (in thousands): | |||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Interest cost | $ | 2,289 | $ | 2,345 | $ | 2,392 | ||||||
Net amortization of unrecognized prior service (credit) cost | (233 | ) | 194 | 620 | ||||||||
Net amortization of actuarial losses | 938 | 1,108 | 3,340 | |||||||||
Net periodic defined benefit pension cost | $ | 2,994 | $ | 3,647 | $ | 6,352 | ||||||
Unrecognized prior service (credit) cost charged to comprehensive income (loss) | $ | (233 | ) | $ | 194 | $ | 620 | |||||
Unrecognized net actuarial loss charged to comprehensive income (loss) | 938 | 1,108 | 3,340 | |||||||||
Actuarial gains (losses) | (6,142 | ) | 1,751 | 3,508 | ||||||||
Plan amendment | — | 4,529 | — | |||||||||
Related tax impact | 2,080 | (2,963 | ) | (2,855 | ) | |||||||
Total periodic defined benefit pension cost and other charges to comprehensive income (loss) | $ | (3,357 | ) | $ | 4,619 | $ | 4,613 | |||||
Schedule of accumulated other comprehensive income (loss), before tax, that have not yet been recognized in net periodic defined benefit pension cost | Included in accumulated other comprehensive income (loss), before tax, as of January 31, 2015 and February 1, 2014 were the following amounts that have not yet been recognized in net periodic defined benefit pension cost (in thousands): | |||||||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||||||
Unrecognized prior service credit (1) | $ | (1,748 | ) | $ | (1,981 | ) | ||||||
Unrecognized net actuarial loss | 18,178 | 12,974 | ||||||||||
Total included in accumulated other comprehensive loss | $ | 16,430 | $ | 10,993 | ||||||||
________________________________________________________________________ | ||||||||||||
-1 | During fiscal 2014, the Company amended the SERP to limit the amount of eligible wages under the plan that count toward the SERP benefit for the active participant. As a result, unrecognized prior service cost was reduced by $4.5 million during fiscal 2014. | |||||||||||
Schedule of SERP's funded status and the amounts recognized in the Company's consolidated balance sheets | The following chart summarizes the SERP’s funded status and the amounts recognized in the Company’s consolidated balance sheets (in thousands): | |||||||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||||||
Projected benefit obligation (1) | $ | (61,862 | ) | $ | (54,704 | ) | ||||||
Plan assets at fair value (2) | — | — | ||||||||||
Net liability | $ | (61,862 | ) | $ | (54,704 | ) | ||||||
________________________________________________________________________ | ||||||||||||
-1 | The projected benefit obligation was included in accrued expenses and other long-term liabilities in the Company’s consolidated balance sheets depending on the expected timing of payments. | |||||||||||
-2 | The SERP is a non-qualified pension plan and hence the insurance policies are not considered to be plan assets. Accordingly, the table above does not include the insurance policies with cash surrender values of $53.6 million and $51.4 million as of January 31, 2015 and February 1, 2014, respectively. | |||||||||||
Schedule of reconciliation of the changes in the projected benefit obligation | A reconciliation of the changes in the projected benefit obligation for fiscal 2015 and fiscal 2014 is as follows (in thousands): | |||||||||||
Projected Benefit | ||||||||||||
Obligation | ||||||||||||
Balance at February 2, 2013 | $ | 58,639 | ||||||||||
Interest cost | 2,345 | |||||||||||
Plan amendment | (4,529 | ) | ||||||||||
Actuarial gains | (1,751 | ) | ||||||||||
Balance at February 1, 2014 | $ | 54,704 | ||||||||||
Interest cost | 2,289 | |||||||||||
Actuarial losses | 6,142 | |||||||||||
Payments | (1,273 | ) | ||||||||||
Balance at January 31, 2015 | $ | 61,862 | ||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||
Schedule of future minimum property and equipment lease payments under capital lease and non-cancelable operating leases | Future minimum property and equipment lease payments under the capital lease and non-cancelable operating leases as of January 31, 2015 are as follows (in thousands): | |||||||||||||||
Operating Leases | ||||||||||||||||
Capital Lease | Non-Related | Related | Total | |||||||||||||
Parties | Parties | |||||||||||||||
Fiscal 2016 | $ | 1,778 | $ | 179,269 | $ | 4,739 | $ | 185,786 | ||||||||
Fiscal 2017 | 4,206 | 157,908 | 4,458 | 166,572 | ||||||||||||
Fiscal 2018 | — | 140,875 | 4,602 | 145,477 | ||||||||||||
Fiscal 2019 | — | 119,359 | 4,751 | 124,110 | ||||||||||||
Fiscal 2020 | — | 105,147 | 4,907 | 110,054 | ||||||||||||
Thereafter | — | 234,644 | 2,280 | 236,924 | ||||||||||||
Total minimum lease payments | $ | 5,984 | $ | 937,202 | $ | 25,737 | $ | 968,923 | ||||||||
Less interest | (239 | ) | ||||||||||||||
Capital lease obligations | $ | 5,745 | ||||||||||||||
Less current portion | (1,548 | ) | ||||||||||||||
Long-term capital lease obligations | $ | 4,197 | ||||||||||||||
Schedule of reconciliation of the total carrying amount of redeemable noncontrolling interests | A reconciliation of the total carrying amount of redeemable noncontrolling interests for fiscal 2015 and fiscal 2014 is as follows (in thousands): | |||||||||||||||
Year Ended | Year Ended | |||||||||||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||||||||||
Beginning balance | $ | 5,830 | $ | 3,144 | ||||||||||||
Foreign currency translation adjustment | (788 | ) | (104 | ) | ||||||||||||
Noncontrolling interest capital contribution | — | 1,199 | ||||||||||||||
Redeemable noncontrolling interest redemption value adjustment | (605 | ) | 1,591 | |||||||||||||
Ending balance | $ | 4,437 | $ | 5,830 | ||||||||||||
Quarterly_Information_Unaudite1
Quarterly Information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Summary of the unaudited quarterly financial information | The following is a summary of the unaudited quarterly financial information for fiscal 2015 and fiscal 2014 (in thousands, except per share data): | ||||||||||||||||
Quarterly Periods Ended (1) | |||||||||||||||||
Year Ended January 31, 2015 | May 3, | Aug 2, | Nov 1, | Jan 31, | |||||||||||||
2014 | 2014 | 2014 | 2015 | ||||||||||||||
Net revenue | $ | 522,541 | $ | 608,571 | $ | 589,834 | $ | 696,727 | |||||||||
Gross profit | 176,231 | 216,777 | 213,958 | 260,919 | |||||||||||||
Net earnings (loss) | (2,187 | ) | 22,272 | 21,510 | 55,589 | ||||||||||||
Net earnings (loss) attributable to Guess?, Inc. | (2,101 | ) | 21,954 | 20,788 | 53,929 | ||||||||||||
Net earnings (loss) per common share attributable to common stockholders: (2) | |||||||||||||||||
Basic | $ | (0.03 | ) | $ | 0.26 | $ | 0.24 | $ | 0.63 | ||||||||
Diluted | $ | (0.03 | ) | $ | 0.26 | $ | 0.24 | $ | 0.63 | ||||||||
Quarterly Periods Ended (1) | |||||||||||||||||
Year Ended February 1, 2014 | May 4, | Aug 3, | Nov 2, | Feb 1, | |||||||||||||
2013 | 2013 | 2013 | 2014 | ||||||||||||||
Net revenue | $ | 548,914 | $ | 639,012 | $ | 613,497 | $ | 768,363 | |||||||||
Gross profit | 197,426 | 248,532 | 228,227 | 301,949 | |||||||||||||
Net earnings | 11,100 | 40,703 | 34,811 | 71,097 | |||||||||||||
Net earnings attributable to Guess?, Inc. | 9,916 | 39,866 | 34,020 | 69,632 | |||||||||||||
Net earnings per common share attributable to common stockholders: (2) (3) | |||||||||||||||||
Basic | $ | 0.12 | $ | 0.47 | $ | 0.4 | $ | 0.82 | |||||||||
Diluted | $ | 0.12 | $ | 0.47 | $ | 0.4 | $ | 0.82 | |||||||||
_________________________________________________________________________ | |||||||||||||||||
-1 | All fiscal quarters presented consisted of 13 weeks. | ||||||||||||||||
-2 | Per common share amounts for the quarters and full years have been calculated separately. Accordingly, quarterly amounts may not add to the annual amount because of differences in the average common shares outstanding during each period. | ||||||||||||||||
-3 | During the first quarter of fiscal 2014, the Company implemented plans to streamline its structure and reduce expenses in both Europe and North America. During the second quarter of fiscal 2014, the Company expanded these plans to include the consolidation and streamlining of certain operations in Europe and Asia. These actions resulted in restructuring charges of $2.3 million, $6.1 million, $1.9 million and $2.1 million during the first, second, third and fourth quarters of fiscal 2014, respectively. Refer to Note 9 for further detail regarding the restructuring charges. |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Summary of net revenue, earnings (loss) from operations, capital expenditures and total assets by segment | Segment information is summarized as follows (in thousands): | |||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Net revenue: | ||||||||||||
North American Retail | $ | 1,032,601 | $ | 1,075,475 | $ | 1,116,836 | ||||||
Europe | 825,136 | 903,791 | 939,599 | |||||||||
Asia | 281,090 | 292,714 | 290,655 | |||||||||
North American Wholesale | 167,707 | 179,600 | 194,373 | |||||||||
Licensing | 111,139 | 118,206 | 117,142 | |||||||||
Total net revenue | $ | 2,417,673 | $ | 2,569,786 | $ | 2,658,605 | ||||||
Earnings (loss) from operations: | ||||||||||||
North American Retail | $ | (13,734 | ) | $ | 39,540 | $ | 78,285 | |||||
Europe | 66,231 | 97,231 | 103,975 | |||||||||
Asia | 8,013 | 25,592 | 26,525 | |||||||||
North American Wholesale | 34,173 | 38,771 | 45,008 | |||||||||
Licensing | 101,288 | 107,805 | 101,182 | |||||||||
Corporate Overhead | (70,059 | ) | (73,910 | ) | (80,450 | ) | ||||||
Restructuring Charges | — | (12,442 | ) | — | ||||||||
Total earnings from operations | $ | 125,912 | $ | 222,587 | $ | 274,525 | ||||||
Capital expenditures: | ||||||||||||
North American Retail | $ | 30,704 | $ | 29,980 | $ | 49,759 | ||||||
Europe | 22,930 | 30,994 | 31,930 | |||||||||
Asia | 7,150 | 7,150 | 8,614 | |||||||||
North American Wholesale | 4,958 | 4,870 | 2,725 | |||||||||
Licensing | 16 | 39 | 40 | |||||||||
Corporate Overhead | 5,740 | 2,405 | 6,523 | |||||||||
Total capital expenditures | $ | 71,498 | $ | 75,438 | $ | 99,591 | ||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||||||
Total assets: | ||||||||||||
North American Retail | $ | 279,903 | $ | 334,464 | ||||||||
Europe | 690,294 | 819,999 | ||||||||||
Asia | 146,292 | 158,798 | ||||||||||
North American Wholesale | 274,996 | 138,918 | ||||||||||
Licensing | 9,933 | 16,037 | ||||||||||
Corporate Overhead | 199,987 | 296,215 | ||||||||||
Total assets | $ | 1,601,405 | $ | 1,764,431 | ||||||||
Summary of net revenue and long-lived assets by country | The table below presents information regarding geographic areas in which the Company operated. Net revenue is classified primarily based on the country where the Company’s customer is located (in thousands): | |||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Net revenue: | ||||||||||||
U.S. | $ | 951,137 | $ | 988,746 | $ | 1,028,549 | ||||||
Italy | 278,523 | 306,281 | 365,299 | |||||||||
Canada | 238,417 | 264,107 | 290,320 | |||||||||
South Korea | 200,465 | 198,843 | 182,475 | |||||||||
Other foreign countries | 749,131 | 811,809 | 791,962 | |||||||||
Total net revenue | $ | 2,417,673 | $ | 2,569,786 | $ | 2,658,605 | ||||||
Jan 31, 2015 | Feb 1, 2014 | |||||||||||
Long-lived assets: | ||||||||||||
U.S. | $ | 130,497 | $ | 154,251 | ||||||||
Italy | 40,609 | 54,842 | ||||||||||
Canada | 22,476 | 29,803 | ||||||||||
South Korea | 8,945 | 7,328 | ||||||||||
Other foreign countries | 110,763 | 135,546 | ||||||||||
Total long-lived assets | $ | 313,290 | $ | 381,770 | ||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Computation of basic and diluted net earnings per common share attributable to common stockholders | The computation of basic and diluted net earnings per common share attributable to common stockholders is as follows (in thousands, except per share data): | |||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Net earnings attributable to Guess?, Inc. | $ | 94,570 | $ | 153,434 | $ | 178,744 | ||||||
Less net earnings attributable to nonvested restricted stockholders | 662 | 1,243 | 1,347 | |||||||||
Net earnings attributable to common stockholders | $ | 93,908 | $ | 152,191 | $ | 177,397 | ||||||
Weighted average common shares used in basic computations | 84,604 | 84,271 | 86,262 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options and restricted stock units | 233 | 251 | 278 | |||||||||
Weighted average common shares used in diluted computations | 84,837 | 84,522 | 86,540 | |||||||||
Net earnings per common share attributable to common stockholders: | ||||||||||||
Basic | $ | 1.11 | $ | 1.81 | $ | 2.06 | ||||||
Diluted | $ | 1.11 | $ | 1.8 | $ | 2.05 | ||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Schedule of share-based compensation expense recognized under all of the Company's stock plans | The following table summarizes the share-based compensation expense recognized under all of the Company’s stock plans during fiscal 2015, fiscal 2014 and fiscal 2013 (in thousands): | ||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | |||||||||||
Stock options | $ | 2,106 | $ | 2,490 | $ | 4,633 | |||||||
Nonvested stock awards/units | 12,999 | 11,225 | 11,337 | ||||||||||
ESPP | 237 | 234 | 315 | ||||||||||
Total share-based compensation expense | $ | 15,342 | $ | 13,949 | $ | 16,285 | |||||||
Schedule of stock option activity under all of the Company's stock plans | The following table summarizes the stock option activity under all of the Company’s stock plans during fiscal 2015: | ||||||||||||
Number of Shares | Weighted Average | Weighted Average | Aggregate | ||||||||||
Exercise Price | Remaining | Intrinsic | |||||||||||
Contractual | Value ($000’s) | ||||||||||||
Term (Years) | |||||||||||||
Options outstanding at February 1, 2014 | 1,781,926 | $ | 30.46 | ||||||||||
Granted | 456,950 | 27.97 | |||||||||||
Exercised | (96,158 | ) | 12.92 | ||||||||||
Forfeited | (325,587 | ) | 31.27 | ||||||||||
Expired | — | — | |||||||||||
Options outstanding at January 31, 2015 | 1,817,131 | $ | 30.61 | 6.45 | $ | 69 | |||||||
Exercisable at January 31, 2015 | 1,274,541 | $ | 31.89 | 5.49 | $ | 69 | |||||||
Options exercisable and expected to vest at January 31, 2015 | 1,749,715 | $ | 30.74 | 6.34 | $ | 69 | |||||||
Schedule of weighted average assumptions used for stock option grants | The fair value of each stock option was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted average assumptions used for grants during fiscal 2015, fiscal 2014 and fiscal 2013: | ||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
Valuation Assumptions | Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Risk-free interest rate | 0.8 | % | 0.5 | % | 0.4 | % | |||||||
Expected stock price volatility | 36.1 | % | 39.7 | % | 46.8 | % | |||||||
Expected dividend yield | 3.3 | % | 3 | % | 2.6 | % | |||||||
Expected life of stock options (in years) | 3.7 | 3.7 | 3.6 | ||||||||||
Schedule of nonvested stock awards/units activity under all of the Company's stock plans | The following table summarizes the nonvested stock awards/units activity under all of the Company’s stock plans during fiscal 2015: | ||||||||||||
Number of | Weighted | ||||||||||||
Shares/Units | Average | ||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
Nonvested at February 1, 2014 | 963,655 | $ | 29.76 | ||||||||||
Granted | 631,645 | 28.12 | |||||||||||
Vested | (431,713 | ) | 30.12 | ||||||||||
Forfeited | (172,000 | ) | 29.06 | ||||||||||
Nonvested at January 31, 2015 | 991,587 | $ | 28.71 | ||||||||||
Schedule of weighted average assumptions used for ESPP | The fair value of stock compensation expense associated with the Company’s ESPP was estimated on the date of grant using the Black-Scholes option-pricing valuation model with the following weighted average assumptions used for grants during fiscal 2015, fiscal 2014 and fiscal 2013. | ||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
Valuation Assumptions | Jan 31, 2015 | Feb 1, 2014 | Feb 2, 2013 | ||||||||||
Risk-free interest rate | 0 | % | 0.1 | % | 0.1 | % | |||||||
Expected stock price volatility | 29 | % | 29.7 | % | 46.4 | % | |||||||
Expected dividend yield | 3.7 | % | 3.1 | % | 2.8 | % | |||||||
Expected life of ESPP options (in months) | 3 | 3 | 3 | ||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of fair value hierarchy for assets and liabilities measured at fair value on a recurring basis | The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of January 31, 2015 and February 1, 2014 (in thousands): | ||||||||||||||||||||||||||||||||
Fair Value Measurements at Jan 31, 2015 | Fair Value Measurements at Feb 1, 2014 | ||||||||||||||||||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Foreign exchange currency contracts | $ | — | $ | 15,542 | $ | — | $ | 15,542 | $ | — | $ | 2,116 | $ | — | $ | 2,116 | |||||||||||||||||
Available-for-sale securities | 36 | — | — | 36 | 5,732 | — | — | 5,732 | |||||||||||||||||||||||||
Total | $ | 36 | $ | 15,542 | $ | — | $ | 15,578 | $ | 5,732 | $ | 2,116 | $ | — | $ | 7,848 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Foreign exchange currency contracts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,712 | $ | — | $ | 1,712 | |||||||||||||||||
Interest rate swap | — | 270 | — | 270 | — | 581 | — | 581 | |||||||||||||||||||||||||
Deferred compensation obligations | — | 9,133 | — | 9,133 | — | 7,498 | — | 7,498 | |||||||||||||||||||||||||
Total | $ | — | $ | 9,403 | $ | — | $ | 9,403 | $ | — | $ | 9,791 | $ | — | $ | 9,791 | |||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||
Jan. 31, 2015 | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||
Summary of fair value of derivative instruments in the consolidated balance sheets | The fair value of derivative instruments in the consolidated balance sheets as of January 31, 2015 and February 1, 2014 was as follows (in thousands): | ||||||||||||||
Derivative | Fair Value at Jan 31, 2015 | Fair Value at Feb 1, 2014 | |||||||||||||
Balance Sheet | |||||||||||||||
Location | |||||||||||||||
ASSETS: | |||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Foreign exchange currency contracts: | |||||||||||||||
Cash flow hedges | Other current assets | $ | 6,597 | $ | 977 | ||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign exchange currency contracts | Other current assets | 8,945 | 1,139 | ||||||||||||
Total | $ | 15,542 | $ | 2,116 | |||||||||||
LIABILITIES: | |||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Foreign exchange currency contracts: | |||||||||||||||
Cash flow hedges | Accrued expenses | $ | — | $ | 672 | ||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign exchange currency contracts | Accrued expenses | — | 1,040 | ||||||||||||
Interest rate swaps | Other long-term liabilities | 270 | 581 | ||||||||||||
Total derivatives not designated as hedging instruments | 270 | 1,621 | |||||||||||||
Total | $ | 270 | $ | 2,293 | |||||||||||
Summary of gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings | The following table summarizes the gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings for fiscal 2015, fiscal 2014 and fiscal 2013 (in thousands): | ||||||||||||||
Gain | Location of | Gain (Loss) | |||||||||||||
Recognized in | Gain (Loss) | Reclassified from | |||||||||||||
OCI | Reclassified from | Accumulated OCI into Earnings | |||||||||||||
Accumulated OCI | |||||||||||||||
Year Ended Jan 31, 2015 | into Earnings(1) | Year Ended Jan 31, 2015 | |||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||
Foreign exchange currency contracts | $ | 6,962 | Cost of sales | $ | (272 | ) | |||||||||
Foreign exchange currency contracts | $ | 922 | Other income/expense | $ | 165 | ||||||||||
Gain Recognized in | Location of | Gain Reclassified from | |||||||||||||
OCI | Gain | Accumulated OCI into Earnings | |||||||||||||
Reclassified from | |||||||||||||||
Accumulated OCI | |||||||||||||||
Year Ended Feb 1, 2014 | into Earnings(1) | Year Ended Feb 1, 2014 | |||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||
Foreign exchange currency contracts | $ | 4,595 | Cost of sales | $ | 3,050 | ||||||||||
Foreign exchange currency contracts | $ | 370 | Other income/expense | $ | 9 | ||||||||||
Gain Recognized in | Location of | Gain | |||||||||||||
OCI | Gain | Reclassified from | |||||||||||||
Reclassified from | Accumulated OCI into Earnings | ||||||||||||||
Accumulated OCI | |||||||||||||||
Year Ended Feb 2, 2013 | into Earnings(1) | Year Ended Feb 2, 2013 | |||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||
Foreign exchange currency contracts | $ | 2,126 | Cost of sales | $ | 8,700 | ||||||||||
Foreign exchange currency contracts | $ | 105 | Other income/expense | $ | 628 | ||||||||||
________________________________________________________________________ | |||||||||||||||
-1 | The ineffective portion was immaterial during fiscal 2015, fiscal 2014 and fiscal 2013 and was recorded in net earnings and included in interest income/expense. | ||||||||||||||
Summary of net after-tax derivative activity recorded in accumulated other comprehensive income (loss) | The following table summarizes net after-tax derivative activity recorded in accumulated other comprehensive income (loss) (in thousands): | ||||||||||||||
Year Ended Jan 31, 2015 | Year Ended Feb 1, 2014 | ||||||||||||||
Beginning balance loss | $ | (113 | ) | $ | (1,782 | ) | |||||||||
Net gains from changes in cash flow hedges | 6,734 | 4,092 | |||||||||||||
Net (gains) losses reclassified to earnings | 536 | (2,423 | ) | ||||||||||||
Ending balance gain (loss) | $ | 7,157 | $ | (113 | ) | ||||||||||
Summary of gains (losses) before taxes recognized on the derivative instruments not designated as hedging instruments in other income and expense | The following table summarizes the gains (losses) before taxes recognized on the derivative instruments not designated as hedging instruments in other income and expense for fiscal 2015, fiscal 2014 and fiscal 2013 (in thousands): | ||||||||||||||
Location of | Gain (Loss) Recognized in Earnings | ||||||||||||||
Gain (Loss) | |||||||||||||||
Recognized in | |||||||||||||||
Earnings | Year Ended Jan 31, 2015 | Year Ended Feb 1, 2014 | Year Ended Feb 2, 2013 | ||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign exchange currency contracts | Other income/expense | $ | 14,723 | $ | 1,843 | $ | (20 | ) | |||||||
Interest rate swaps | Other income/expense | $ | 242 | $ | 238 | $ | 166 | ||||||||
Description_of_the_Business_an3
Description of the Business and Summary of Significant Accounting Policies and Practices (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Feb. 02, 2013 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 30, 2016 | |
segment | |||||||||||||
Fiscal Year | |||||||||||||
Number of days in fiscal period | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 98 days | 364 days | 364 days | 371 days | |
Business Segment Reporting | |||||||||||||
Number of reportable segments | 5 | ||||||||||||
Advertising and Marketing Costs | |||||||||||||
Advertising and marketing expenses | $40,000,000 | $45,000,000 | $59,100,000 | ||||||||||
Foreign Currency | |||||||||||||
Foreign currency translation adjustment | -116,707,000 | -18,425,000 | 22,347,000 | ||||||||||
Accumulated foreign currency translation loss | -124,400,000 | -7,700,000 | -124,400,000 | -7,700,000 | |||||||||
Net foreign currency transaction gains | $13,800,000 | $6,300,000 | $8,600,000 | ||||||||||
Cash and Cash Equivalents | |||||||||||||
Marketable securities maximum original maturity period | 3 months | ||||||||||||
Long-Lived Assets | |||||||||||||
Period of time new retail locations in penetrated markets would need to be opened to be considered for impairment | 1 year | ||||||||||||
Period of time new retail locations in newer markets would need to be opened to be considered for impairment | 2 years | ||||||||||||
Forecast | |||||||||||||
Fiscal Year | |||||||||||||
Number of days in fiscal period | 364 days | ||||||||||||
Minimum | |||||||||||||
Fiscal Year | |||||||||||||
Number of days in fiscal period | 364 days | ||||||||||||
Maximum | |||||||||||||
Fiscal Year | |||||||||||||
Number of days in fiscal period | 371 days |
Description_of_the_Business_an4
Description of the Business and Summary of Significant Accounting Policies and Practices (Details 2) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
subsidiary | |||
Net Royalty Revenue | |||
Deferred royalties, current | $15,490,000 | $15,787,000 | |
Gift Cards | |||
Number of subsidiaries that issue gift cards | 1 | ||
Gift card breakage revenue | 1,100,000 | 800,000 | 500,000 |
Loyalty Programs | |||
Expiration period of unredeemed points (in months) | 6 months | ||
Expiration period of unredeemed awards (in months) | 2 months | ||
Accrued expenses | |||
Loyalty Programs | |||
Aggregate dollar value of the loyalty program accruals included in accrued expenses | 4,500,000 | 4,200,000 | |
Accrued expenses | Deferred royalties | |||
Net Royalty Revenue | |||
Deferred royalties, current | 15,100,000 | 15,400,000 | |
Other long-term liabilities | Deferred royalties | |||
Net Royalty Revenue | |||
Deferred royalties, noncurrent | $30,000,000 | $44,100,000 | |
U.S. Retail business | |||
Gift Cards | |||
Gift card breakage rate (as a percent) | 5.70% | ||
Canadian Retail business | |||
Gift Cards | |||
Gift card breakage rate (as a percent) | 4.70% |
Description_of_the_Business_an5
Description of the Business and Summary of Significant Accounting Policies and Practices (Details 3) (Selling, general and administrative expenses, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Selling, general and administrative expenses | |||
Classification of Certain Costs and Expenses | |||
Distribution costs related primarily to the wholesale business | $28.80 | $31.70 | $36.20 |
Description_of_the_Business_an6
Description of the Business and Summary of Significant Accounting Policies and Practices (Details 4) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
customer | customer | customer | |
Concentration of Credit and Liquidity Risk | |||
Number of diversified money market funds, in which cash and cash equivalents are held | 3 | ||
Concentration risk | |||
Percentage of total accounts receivable that are subject to credit insurance coverage, certain bank guarantees or letters of credit for collection purposes | 53.00% | ||
Europe | |||
Concentration risk | |||
Percentage of total accounts receivable that are subject to credit insurance coverage, certain bank guarantees or letters of credit for collection purposes | 66.00% | ||
Net Revenue | Customer Concentration Risk | |||
Concentration risk | |||
Number of domestic wholesale customers | 2 | 2 | 2 |
Percentage of consolidated net revenue accounted for by two customers | 3.60% | 3.30% | 3.50% |
Description_of_the_Business_an7
Description of the Business and Summary of Significant Accounting Policies and Practices (Details 5) | 12 Months Ended |
Jan. 31, 2015 | |
Purchased intangibles | Minimum | |
Summary of Significant Accounting Policies | |
Purchased intangibles, useful life | 4 years |
Purchased intangibles | Maximum | |
Summary of Significant Accounting Policies | |
Purchased intangibles, useful life | 20 years |
Building and building improvements including properties under capital lease | Minimum | |
Summary of Significant Accounting Policies | |
Property and equipment, useful life | 10 years |
Building and building improvements including properties under capital lease | Maximum | |
Summary of Significant Accounting Policies | |
Property and equipment, useful life | 33 years |
Land improvements | |
Summary of Significant Accounting Policies | |
Property and equipment, useful life | 5 years |
Furniture, fixtures and equipment | Minimum | |
Summary of Significant Accounting Policies | |
Property and equipment, useful life | 2 years |
Furniture, fixtures and equipment | Maximum | |
Summary of Significant Accounting Policies | |
Property and equipment, useful life | 10 years |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Accounts receivable | ||
Accounts receivable, gross | $248,125 | $315,957 |
Less allowance for doubtful accounts | 31,920 | 39,392 |
Accounts receivable, net | 216,205 | 276,565 |
Trade receivables | ||
Accounts receivable | ||
Accounts receivable, gross | 232,768 | 291,411 |
Royalty receivables | ||
Accounts receivable | ||
Accounts receivable, gross | 10,118 | 16,372 |
Other receivables | ||
Accounts receivable | ||
Accounts receivable, gross | $5,239 | $8,174 |
Inventories_Details
Inventories (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $4,548,000 | $10,585,000 |
Work in progress | 77,000 | 977,000 |
Finished goods | 314,453,000 | 339,337,000 |
Inventories | 319,078,000 | 350,899,000 |
Allowance to write down inventories to the lower of cost or market | $19,700,000 | $23,400,000 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Property and equipment | |||
Property and equipment, gross | $780,278,000 | $832,275,000 | |
Less accumulated depreciation and amortization | 520,754,000 | 507,669,000 | |
Property and equipment, net | 259,524,000 | 324,606,000 | |
Land and land improvements | |||
Property and equipment | |||
Property and equipment, gross | 2,866,000 | 2,866,000 | |
Building and building improvements | |||
Property and equipment | |||
Property and equipment, gross | 3,471,000 | 4,063,000 | |
Leasehold improvements | |||
Property and equipment | |||
Property and equipment, gross | 386,374,000 | 409,582,000 | |
Furniture, fixtures and equipment | |||
Property and equipment | |||
Property and equipment, gross | 356,960,000 | 383,127,000 | |
Construction in progress | |||
Property and equipment | |||
Property and equipment, gross | 11,417,000 | 9,706,000 | |
Interest costs capitalized | 0 | 0 | 0 |
Properties under capital lease | |||
Property and equipment | |||
Property and equipment, gross | 19,190,000 | 22,931,000 | |
Less accumulated depreciation and amortization | $5,800,000 | $6,100,000 |
Property_and_Equipment_Details1
Property and Equipment (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Impairment to long-lived assets (excluding impairment related to restructuring activities) | |||
Aggregate carrying value of all long-lived assets impaired | $26,106 | $8,928 | |
Less impairment charges | 24,766 | 8,821 | |
Aggregate remaining fair value of long-lived assets impaired | 1,340 | 107 | |
Number of stores and concessions tested for impairment | 179 | 90 | |
Number of stores and concessions impaired | 139 | 31 | |
Retail stores and concessions | North American Retail and Europe | Selling, general and administrative expenses | |||
Impairment to long-lived assets (excluding impairment related to restructuring activities) | |||
Less impairment charges | $24,766 | $8,821 | $10,100 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 12 Months Ended | |
Jan. 31, 2015 | Feb. 01, 2014 | |
Goodwill | ||
Goodwill at the beginning of the period | $38,992,000 | $39,287,000 |
Adjustments: | ||
Disposal | -113,000 | |
Translation Adjustments | -4,746,000 | -295,000 |
Goodwill at the end of the period | 34,133,000 | 38,992,000 |
Accumulated impairment related to goodwill | 0 | |
Other intangible assets | ||
Gross intangible assets | 32,000,000 | 37,700,000 |
Accumulated amortization of intangible assets with finite useful lives | 22,300,000 | 24,600,000 |
Amortization expense over the next five years | ||
2016 | 2,000,000 | |
2017 | 1,600,000 | |
2018 | 1,300,000 | |
2019 | 1,000,000 | |
2020 | 700,000 | |
North American Retail | ||
Goodwill | ||
Goodwill at the beginning of the period | 1,840,000 | 1,925,000 |
Adjustments: | ||
Disposal | 0 | |
Translation Adjustments | -91,000 | -85,000 |
Goodwill at the end of the period | 1,749,000 | 1,840,000 |
Europe | ||
Goodwill | ||
Goodwill at the beginning of the period | 27,167,000 | 27,362,000 |
Adjustments: | ||
Disposal | -113,000 | |
Translation Adjustments | -4,639,000 | -195,000 |
Goodwill at the end of the period | 22,415,000 | 27,167,000 |
North American Wholesale | ||
Goodwill | ||
Goodwill at the beginning of the period | 9,985,000 | 10,000,000 |
Adjustments: | ||
Disposal | 0 | |
Translation Adjustments | -16,000 | -15,000 |
Goodwill at the end of the period | $9,969,000 | $9,985,000 |
Accrued_Expenses_Details
Accrued Expenses (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $55,775 | $68,354 |
Sales and use taxes, property taxes and other indirect taxes | 20,874 | 23,126 |
Deferred royalties and other revenue | 15,490 | 15,787 |
Store credits, loyalty and gift cards | 9,745 | 9,738 |
Advertising | 9,368 | 7,853 |
Construction costs | 5,376 | 3,714 |
Professional fees | 4,988 | 5,871 |
Accrued rent | 2,378 | 9,607 |
Restructuring charges | 276 | 4,578 |
Income taxes | 0 | 11,823 |
Derivative financial instruments | 0 | 1,712 |
Other | 16,224 | 12,170 |
Total | $140,494 | $174,333 |
Borrowings_and_Capital_Lease_O2
Borrowings and Capital Lease Obligations (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Jan. 31, 2015 | Jul. 06, 2011 | Feb. 01, 2014 | Aug. 31, 2012 | |
facility | ||||
Borrowings and capital lease obligations | ||||
Borrowings and capital lease obligations, total | $7,713,000 | $11,740,000 | ||
Less current installments | 1,548,000 | 4,160,000 | ||
Long-term capital lease obligations and other debt | 6,165,000 | 7,580,000 | ||
Maturities of capital lease obligations and debt | ||||
Capital lease obligations | 5,745,000 | 8,637,000 | ||
Other debt | 1,968,000 | 3,103,000 | ||
Fiscal 2016 | 1,548,000 | |||
Fiscal 2017 | 4,197,000 | |||
Fiscal 2018 | 0 | |||
Fiscal 2019 | 626,000 | |||
Fiscal 2020 | 1,342,000 | |||
Thereafter | 0 | |||
Borrowings and capital lease obligations, total | 7,713,000 | 11,740,000 | ||
Short-term borrowing | Europe | ||||
Borrowings and capital lease obligations | ||||
Current borrowing capacity | 99,400,000 | |||
Credit Facility, outstanding amount | 0 | |||
Interest rate, low end of the range (as a percent) | 0.30% | |||
Interest rate, high end of the range (as a percent) | 6.80% | |||
Number of credit facilities subject to minimum net equity requirement | 1 | |||
Maximum borrowing capacity of the credit facility which is subject to a minimum net equity requirement | 39,500,000 | |||
Documentary letters of credit | Short-term borrowing | Europe | ||||
Borrowings and capital lease obligations | ||||
Letters of credit outstanding | 700,000 | |||
European capital lease, maturing quarterly through 2016 | ||||
Maturities of capital lease obligations and debt | ||||
Fiscal 2016 | 1,548,000 | |||
Fiscal 2017 | 4,197,000 | |||
Fiscal 2018 | 0 | |||
Fiscal 2019 | 0 | |||
Fiscal 2020 | 0 | |||
Thereafter | 0 | |||
Capital lease obligations | 5,745,000 | |||
European capital lease, maturing quarterly through 2016 | Italy | ||||
Maturities of capital lease obligations and debt | ||||
Capital lease obligations | 5,745,000 | |||
European capital lease, maturing quarterly through 2016 | Italy | Interest rate swaps | ||||
Borrowings and capital lease obligations | ||||
Fixed rate of interest rate swap designated as a non-hedging instrument (as a percent) | 3.55% | |||
Interest rate swap maturity date | 1-Feb-16 | |||
Fair value of the interest rate swap liability | 300,000 | |||
Credit Facility | ||||
Borrowings and capital lease obligations | ||||
Credit Facility, outstanding amount | 0 | |||
Credit Facility, minimum unrestricted cash and cash equivalent balance held by domestic subsidiaries after dividend payment | 50,000,000 | |||
Credit Facility | Revolving Credit Facility | ||||
Borrowings and capital lease obligations | ||||
Debt maturity period (in years) | 5 years | |||
Maximum borrowing capacity | 300,000,000 | 200,000,000 | 300,000,000 | |
Percentage of equity interests in foreign subsidiaries in which the entity must pledge as security | 65.00% | |||
Credit Facility | Revolving Credit Facility | Eurodollar Rate Loans LIBOR rate | Minimum | ||||
Borrowings and capital lease obligations | ||||
Interest rate margin (as a percent) | 1.15% | |||
Credit Facility | Revolving Credit Facility | Eurodollar Rate Loans LIBOR rate | Maximum | ||||
Borrowings and capital lease obligations | ||||
Interest rate margin (as a percent) | 1.65% | |||
Credit Facility | Revolving Credit Facility | Base Rate Loans, domestic, federal funds rate | ||||
Borrowings and capital lease obligations | ||||
Interest rate margin (as a percent) | 0.50% | |||
Credit Facility | Revolving Credit Facility | Base Rate Loans one month adjusted LIBOR | ||||
Borrowings and capital lease obligations | ||||
Interest rate margin (as a percent) | 1.00% | |||
Credit Facility | Revolving Credit Facility | Base Rate Loans one month adjusted LIBOR | Minimum | ||||
Borrowings and capital lease obligations | ||||
Interest rate margin (as a percent) | 0.15% | |||
Credit Facility | Revolving Credit Facility | Base Rate Loans one month adjusted LIBOR | Maximum | ||||
Borrowings and capital lease obligations | ||||
Interest rate margin (as a percent) | 0.65% | |||
Credit Facility | Standby letters of credit | ||||
Borrowings and capital lease obligations | ||||
Letters of credit outstanding | 1,700,000 | |||
Credit Facility | Documentary letters of credit | ||||
Borrowings and capital lease obligations | ||||
Letters of credit outstanding | 0 | |||
Credit Facility | Accordion feature | ||||
Borrowings and capital lease obligations | ||||
Maximum borrowing capacity | 100,000,000 | 100,000,000 | ||
Other | ||||
Maturities of capital lease obligations and debt | ||||
Fiscal 2016 | 0 | |||
Fiscal 2017 | 0 | |||
Fiscal 2018 | 0 | |||
Fiscal 2019 | 626,000 | |||
Fiscal 2020 | 1,342,000 | |||
Thereafter | 0 | |||
Other debt | $1,968,000 |
Restructuring_Charges_Details
Restructuring Charges (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Restructuring activity | |||||||
Restructuring reserve included in accrued expenses | $4,578 | $276 | $4,578 | ||||
Restructuring reserve activity | |||||||
Beginning balance | 0 | 4,578 | 0 | ||||
Charges to operations | 2,100 | 1,900 | 6,100 | 2,300 | 0 | 12,442 | 0 |
Non-cash write-offs | -1,717 | ||||||
Cash payments | -2,952 | -6,059 | |||||
Foreign currency and other adjustments | -1,350 | -88 | |||||
Ending balance | 4,578 | 276 | 4,578 | 0 | |||
Severance | |||||||
Restructuring reserve activity | |||||||
Beginning balance | 0 | 4,578 | 0 | ||||
Charges to operations | 9,206 | ||||||
Non-cash write-offs | 0 | ||||||
Cash payments | -2,952 | -4,567 | |||||
Foreign currency and other adjustments | -1,350 | -61 | |||||
Ending balance | 4,578 | 276 | 4,578 | ||||
Impairment and Lease Termination | |||||||
Restructuring reserve activity | |||||||
Beginning balance | 0 | 0 | 0 | ||||
Charges to operations | 3,236 | ||||||
Non-cash write-offs | -1,717 | ||||||
Cash payments | 0 | -1,492 | |||||
Foreign currency and other adjustments | 0 | -27 | |||||
Ending balance | 0 | 0 | 0 | ||||
Accrued expenses | |||||||
Restructuring activity | |||||||
Restructuring reserve included in accrued expenses | $4,578 | $276 | $4,578 |
Comprehensive_Income_Loss_Deta
Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 |
Accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | ($13,801) | ($2,461) |
Gains (losses) arising during the period | -114,240 | -9,938 |
Reclassification to net earnings for (gains) losses realized | 976 | -1,402 |
Net other comprehensive income (loss) | -113,264 | -11,340 |
Ending balance | -127,065 | -13,801 |
Foreign Currency Translation Adjustment | ||
Accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | -7,003 | 10,618 |
Gains (losses) arising during the period | -114,566 | -17,838 |
Reclassification to net earnings for (gains) losses realized | 0 | 217 |
Net other comprehensive income (loss) | -114,566 | -17,621 |
Ending balance | -121,569 | -7,003 |
Derivative Financial Instruments Designated as Cash Flow Hedges | ||
Accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | -113 | -1,782 |
Gains (losses) arising during the period | 6,734 | 4,092 |
Reclassification to net earnings for (gains) losses realized | 536 | -2,423 |
Net other comprehensive income (loss) | 7,270 | 1,669 |
Ending balance | 7,157 | -113 |
Marketable Securities | ||
Accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | 103 | 110 |
Gains (losses) arising during the period | -52 | -7 |
Reclassification to net earnings for (gains) losses realized | -54 | 0 |
Net other comprehensive income (loss) | -106 | -7 |
Ending balance | -3 | 103 |
Define Benefit Plans | ||
Accumulated other comprehensive income (loss), net of tax | ||
Beginning balance | -6,788 | -11,407 |
Gains (losses) arising during the period | -6,356 | 3,815 |
Reclassification to net earnings for (gains) losses realized | 494 | 804 |
Net other comprehensive income (loss) | -5,862 | 4,619 |
Ending balance | ($12,650) | ($6,788) |
Comprehensive_Income_Loss_Deta1
Comprehensive Income (Loss) (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||||||||||
Reclassification out of accumulated other comprehensive income (loss) to net earnings | |||||||||||||||||||||
Restructuring charges | $2,100 | $1,900 | $6,100 | $2,300 | $0 | $12,442 | $0 | ||||||||||||||
Cost of sales | 1,549,788 | 1,593,652 | 1,591,482 | ||||||||||||||||||
Other income/expense | -18,028 | -10,280 | -5,713 | ||||||||||||||||||
Actuarial loss amortization | 1,002 | 1,108 | 3,340 | ||||||||||||||||||
Prior service (credit) cost amortization | -233 | 194 | 620 | ||||||||||||||||||
Income tax expense | 45,824 | 75,248 | 99,128 | ||||||||||||||||||
Net earnings attributable to Guess, Inc. | -53,929 | [1] | -20,788 | [1] | -21,954 | [1] | 2,101 | [1] | -69,632 | [1] | -34,020 | [1] | -39,866 | [1] | -9,916 | [1] | -94,570 | -153,434 | -178,744 | ||
Reclassification out of accumulated other comprehensive income (loss) | |||||||||||||||||||||
Reclassification out of accumulated other comprehensive income (loss) to net earnings | |||||||||||||||||||||
Net earnings attributable to Guess, Inc. | 976 | -1,402 | |||||||||||||||||||
Foreign Currency Translation Adjustment | Reclassification out of accumulated other comprehensive income (loss) | |||||||||||||||||||||
Reclassification out of accumulated other comprehensive income (loss) to net earnings | |||||||||||||||||||||
Restructuring charges | 0 | 217 | |||||||||||||||||||
Net earnings attributable to Guess, Inc. | 0 | 217 | |||||||||||||||||||
Derivative Financial Instruments Designated as Cash Flow Hedges | Reclassification out of accumulated other comprehensive income (loss) | |||||||||||||||||||||
Reclassification out of accumulated other comprehensive income (loss) to net earnings | |||||||||||||||||||||
Cost of sales | 272 | -3,050 | |||||||||||||||||||
Other income/expense | -165 | -9 | |||||||||||||||||||
Income tax expense | 429 | 636 | |||||||||||||||||||
Net earnings attributable to Guess, Inc. | 536 | -2,423 | |||||||||||||||||||
Marketable Securities | Reclassification out of accumulated other comprehensive income (loss) | |||||||||||||||||||||
Reclassification out of accumulated other comprehensive income (loss) to net earnings | |||||||||||||||||||||
Other income/expense | -87 | 0 | |||||||||||||||||||
Income tax expense | 33 | 0 | |||||||||||||||||||
Net earnings attributable to Guess, Inc. | -54 | 0 | |||||||||||||||||||
Define Benefit Plans | Reclassification out of accumulated other comprehensive income (loss) | |||||||||||||||||||||
Reclassification out of accumulated other comprehensive income (loss) to net earnings | |||||||||||||||||||||
Actuarial loss amortization | 1,002 | [2] | 1,108 | [2] | |||||||||||||||||
Prior service (credit) cost amortization | -233 | [2] | 194 | [2] | |||||||||||||||||
Income tax expense | -275 | -498 | |||||||||||||||||||
Net earnings attributable to Guess, Inc. | $494 | $804 | |||||||||||||||||||
[1] | All fiscal quarters presented consisted of 13 weeks. | ||||||||||||||||||||
[2] | These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. Refer to Note 12 for further information. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Federal: | |||
Current | $37,802,000 | $61,239,000 | $42,365,000 |
Deferred | -8,566,000 | -20,294,000 | 10,943,000 |
State: | |||
Current | 6,242,000 | 6,202,000 | 5,853,000 |
Deferred | -3,262,000 | -1,627,000 | 1,494,000 |
Foreign: | |||
Current | 9,756,000 | 25,611,000 | 30,775,000 |
Deferred | 3,852,000 | 4,117,000 | 7,698,000 |
Total | 45,824,000 | 75,248,000 | 99,128,000 |
Accumulated undistributed earnings of foreign subsidiaries | 772,000,000 | 747,000,000 | |
Differences between actual income tax expense and expected income tax expense | |||
Computed “expected†tax expense | 50,053,000 | 81,536,000 | 98,215,000 |
State taxes, net of federal benefit | 1,937,000 | 2,974,000 | 4,776,000 |
Incremental foreign taxes less than federal statutory tax rate | -2,603,000 | -10,107,000 | -13,307,000 |
Net tax settlements | 0 | 0 | 12,832,000 |
Unrecognized tax benefit | 471,000 | 6,856,000 | 147,000 |
Prior year tax adjustments | -2,955,000 | -3,489,000 | -2,300,000 |
Other | -1,079,000 | -2,522,000 | -1,235,000 |
Total | 45,824,000 | 75,248,000 | 99,128,000 |
Allocation of total income tax expense (benefit) | |||
Operations | 45,824,000 | 75,248,000 | 99,128,000 |
Stockholders’ equity | -660,000 | 3,673,000 | 3,703,000 |
Total income taxes | 45,164,000 | 78,921,000 | 102,831,000 |
Tax effects of the components of other comprehensive income (loss) | |||
Derivative financial instruments designated as cash flow hedges | 721,000 | 237,000 | -1,056,000 |
Marketable securities | -61,000 | -4,000 | 85,000 |
Defined benefit plans | -2,335,000 | 2,963,000 | 2,855,000 |
Total income tax expense (benefit) | -1,675,000 | 3,196,000 | 1,884,000 |
Total earnings before income tax expense and noncontrolling interests | |||
Domestic operations | 98,036,000 | 140,153,000 | 169,755,000 |
Foreign operations | 44,972,000 | 92,806,000 | 110,859,000 |
Earnings before income tax expense | 143,008,000 | 232,959,000 | 280,614,000 |
Deferred tax assets: | |||
Defined benefit plans | 23,901,000 | 21,716,000 | |
Deferred income | 15,953,000 | 11,261,000 | |
Rent expense | 12,672,000 | 14,986,000 | |
Deferred compensation | 12,416,000 | 10,692,000 | |
Lease incentives | 6,179,000 | 8,180,000 | |
Net operating losses | 6,122,000 | 2,133,000 | |
Bad debt reserve | 5,175,000 | 9,526,000 | |
Uniform capitalization | 1,927,000 | 2,162,000 | |
Excess of book over tax depreciation/amortization | 1,667,000 | 0 | |
Accrued bonus | 1,342,000 | 2,954,000 | |
Other | 15,453,000 | 13,111,000 | |
Total deferred tax assets | 102,807,000 | 96,721,000 | |
Deferred tax liabilities: | |||
Goodwill amortization | -3,627,000 | -3,693,000 | |
Excess of tax over book depreciation/amortization | 0 | -9,310,000 | |
Other | -3,872,000 | -492,000 | |
Valuation allowance | -7,501,000 | -3,853,000 | |
Net deferred tax assets | 87,807,000 | 79,373,000 | |
Current deferred tax assets | 19,060,000 | 24,400,000 | |
Non-current deferred tax assets | 68,747,000 | 54,973,000 | |
Increase in valuation allowance | $3,600,000 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Operating and capital loss carryforwards | |||
Net operating loss carryforwards of the Company's U.S. and certain retail operations in Asia, Europe and Brazil | $40,100,000 | ||
Operating loss carryforwards that have an unlimited carryforward life | 7,100,000 | ||
Valuation allowance | 5,400,000 | 700,000 | |
Changes that occurred in the amount of gross unrecognized tax benefit excluding interest and penalties | |||
Beginning balance | 10,900,000 | 4,527,000 | 16,045,000 |
Additions: | |||
Tax positions related to the prior year | 4,224,000 | 0 | 0 |
Tax positions related to the current year | 1,722,000 | 7,501,000 | 0 |
Reductions: | |||
Tax positions related to the prior year | -55,000 | -1,128,000 | -568,000 |
Tax positions related to the current year | -91,000 | 0 | 0 |
Settlements | -599,000 | 0 | -10,950,000 |
Expiration of statutes of limitation | -2,461,000 | 0 | 0 |
Ending balance | 13,640,000 | 10,900,000 | 4,527,000 |
Amount of unrecognized tax benefit which, if ultimately recognized, may reduce our future annual effective tax rate | 12,600,000 | ||
Aggregate accruals for uncertain tax positions, including penalties and interest | 14,400,000 | 11,400,000 | |
Interest and penalties related to uncertain tax positions | 300,000 | -900,000 | |
Accrued interest and penalties related to uncertain tax positions | 700,000 | 500,000 | |
Capital loss carryforward | |||
Operating and capital loss carryforwards | |||
Capital loss carryforwards of the Company's U.S. retail operations | 200,000 | ||
Foreign | |||
Operating and capital loss carryforwards | |||
Net operating loss carryforwards of the Company's U.S. and certain retail operations in Asia, Europe and Brazil | 10,700,000 | ||
Foreign | Minimum | |||
Operating and capital loss carryforwards | |||
Fiscal year when operating loss carryforwards will expire | 2016 | ||
Foreign | Maximum | |||
Operating and capital loss carryforwards | |||
Fiscal year when operating loss carryforwards will expire | 2024 | ||
State | |||
Operating and capital loss carryforwards | |||
Net operating loss carryforwards of the Company's U.S. and certain retail operations in Asia, Europe and Brazil | 22,300,000 | ||
State | Minimum | |||
Operating and capital loss carryforwards | |||
Fiscal year when operating loss carryforwards will expire | 2016 | ||
State | Maximum | |||
Operating and capital loss carryforwards | |||
Fiscal year when operating loss carryforwards will expire | 2035 | ||
U.S. | Capital loss carryforward | |||
Operating and capital loss carryforwards | |||
Capital loss carryforwards of the Company's U.S. retail operations | $200,000 | ||
Fiscal year when capital loss carryforwards will expire | 2019 |
Income_Taxes_Details_3
Income Taxes (Details 3) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 31, 2013 | Feb. 02, 2013 | Jan. 31, 2013 | Jan. 31, 2013 | |
USD ($) | USD ($) | USD ($) | Italy | Italy | Italy | Italy | |
Foreign | Foreign | Foreign | Foreign | ||||
EUR (€) | USD ($) | Minimum | Maximum | ||||
subsidiary | |||||||
number_of_members_of_management | |||||||
Income tax examination | |||||||
Number of subsidiaries which were under audit by the Italian tax authority | 1 | ||||||
Fiscal years under examination by tax authorities | 2008 | 2013 | |||||
Tax settlement charge | $12,800,000 | ||||||
Settlement charge previously accrued as an uncertain tax position | 599,000 | 0 | 10,950,000 | 11,700,000 | |||
Threshold for proposed income adjustments automatically referred for review by a public prosecutor | € 2,000,000 | ||||||
Current members of Guess European management team subject to review by a public prosecutor | 1 | ||||||
Former members of Guess European management team subject to review by a public prosecutor | 2 |
Defined_Benefit_Plans_Details
Defined Benefit Plans (Details) | 12 Months Ended | |||||||||||||||||||||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 31, 2015 | Jan. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 31, 2015 | Feb. 01, 2014 | Jan. 31, 2015 | Feb. 01, 2014 | Jan. 31, 2015 | Jan. 31, 2015 | |||||
USD ($) | USD ($) | USD ($) | SERP | SERP | SERP | Swiss Pension Plan | Swiss Pension Plan | Swiss Pension Plan | Other income/expense | Other income/expense | Other income/expense | Other assets | Other assets | Accrued expenses and other long-term liabilities | Accrued expenses and other long-term liabilities | Other long-term liabilities | Other long-term liabilities | |||||
plan | USD ($) | USD ($) | USD ($) | USD ($) | CHF | SERP | SERP | SERP | SERP | SERP | USD ($) | USD ($) | Swiss Pension Plan | Swiss Pension Plan | ||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CHF | ||||||||||||||||
Components of net periodic defined benefit pension cost and other charges to comprehensive income (loss) | ||||||||||||||||||||||
Interest cost | $2,289,000 | $2,345,000 | $2,392,000 | |||||||||||||||||||
Net amortization of unrecognized prior service (credit) cost | -233,000 | 194,000 | 620,000 | |||||||||||||||||||
Net amortization of actuarial losses | 938,000 | 1,108,000 | 3,340,000 | |||||||||||||||||||
Net periodic defined benefit pension cost | 2,994,000 | 3,647,000 | 6,352,000 | 1,600,000 | 1,400,000 | |||||||||||||||||
Unrecognized prior service (credit) cost charged to comprehensive income (loss) | -233,000 | 194,000 | 620,000 | -233,000 | 194,000 | 620,000 | ||||||||||||||||
Unrecognized net actuarial loss charged to comprehensive income (loss) | 1,002,000 | 1,108,000 | 3,340,000 | 938,000 | 1,108,000 | 3,340,000 | ||||||||||||||||
Actuarial gains (losses) | -8,966,000 | 1,751,000 | 3,508,000 | -6,142,000 | 1,751,000 | 3,508,000 | ||||||||||||||||
Plan amendment | 0 | 4,529,000 | 0 | 0 | 4,529,000 | 0 | ||||||||||||||||
Related tax impact | 2,335,000 | -2,963,000 | -2,855,000 | 2,080,000 | -2,963,000 | -2,855,000 | ||||||||||||||||
Total periodic defined benefit pension cost and other charges to comprehensive income (loss) | -5,862,000 | 4,619,000 | 4,613,000 | -3,357,000 | 4,619,000 | 4,613,000 | -2,800,000 | -2,500,000 | ||||||||||||||
Amounts not yet recognized in net periodic defined benefit pension cost, included in accumulated other comprehensive income (loss), before tax | ||||||||||||||||||||||
Unrecognized prior service credit | -1,748,000 | [1] | -1,981,000 | [1] | ||||||||||||||||||
Unrecognized net actuarial loss | 18,178,000 | 12,974,000 | ||||||||||||||||||||
Total included in accumulated other comprehensive loss | 16,430,000 | 10,993,000 | ||||||||||||||||||||
SERP's funded status and the amounts recognized in the Company's consolidated balance sheets | ||||||||||||||||||||||
Projected benefit obligation | -61,862,000 | [2] | -54,704,000 | [2] | -58,639,000 | -15,100,000 | -13,900,000 | -61,862,000 | [2] | -54,704,000 | [2] | |||||||||||
Plan assets at fair value | 0 | [3] | 0 | [3] | 12,500,000 | 11,500,000 | ||||||||||||||||
Net liability | 61,862,000 | 54,704,000 | 2,600,000 | 2,400,000 | ||||||||||||||||||
Reconciliation of the changes in the projected benefit obligation | ||||||||||||||||||||||
Balance at the beginning of the period | 54,704,000 | [2] | 58,639,000 | 61,862,000 | [2] | 54,704,000 | [2] | |||||||||||||||
Interest cost | 2,289,000 | 2,345,000 | 2,392,000 | |||||||||||||||||||
Plan amendment | -4,529,000 | |||||||||||||||||||||
Actuarial (gains) losses | 6,142,000 | -1,751,000 | ||||||||||||||||||||
Payments | -1,273,000 | |||||||||||||||||||||
Balance at the end of the period | 61,862,000 | [2] | 54,704,000 | [2] | 58,639,000 | 15,100,000 | 13,900,000 | 61,862,000 | [2] | 54,704,000 | [2] | |||||||||||
Number of defined benefit plans maintained by the Company | 2 | |||||||||||||||||||||
Plan amendment | -4,529,000 | |||||||||||||||||||||
Cash surrender values of the insurance policies held in a rabbi trust | 53,600,000 | 51,400,000 | ||||||||||||||||||||
Gain as a result of changes in value of the insurance policy investments, included in other income | 2,200,000 | 3,600,000 | 3,400,000 | |||||||||||||||||||
Discount rate assumed as part of the actuarial valuation performed to calculate the projected benefit obligation and fair value of the plan assets (as a percent) | 3.30% | 4.30% | 0.50% | 0.50% | ||||||||||||||||||
Amount of prior service credits, included in comprehensive income (loss), that are expected to be recognized as components of net periodic defined benefit pension cost in next fiscal year | -200,000 | |||||||||||||||||||||
Amount of actuarial losses, included in comprehensive income (loss), that are expected to be recognized as components of net periodic defined benefit pension cost in next fiscal year | 1,700,000 | 200,000 | 200,000 | |||||||||||||||||||
Aggregate benefits projected to be paid in the next five fiscal years | 8,500,000 | |||||||||||||||||||||
Total amount of benefits projected to be paid in year 1 | 1,700,000 | |||||||||||||||||||||
Total amount of benefits projected to be paid in year 2 | 1,700,000 | |||||||||||||||||||||
Total amount of benefits projected to be paid in year 3 | 1,700,000 | |||||||||||||||||||||
Total amount of benefits projected to be paid in year 4 | 1,700,000 | |||||||||||||||||||||
Total amount of benefits projected to be paid in year 5 | 1,700,000 | |||||||||||||||||||||
Aggregate benefits projected to be paid in the following five fiscal years | 18,600,000 | |||||||||||||||||||||
Minimum investment return (as a percent) | 1.75% | |||||||||||||||||||||
Projected benefit obligation | 61,862,000 | [2] | 54,704,000 | [2] | 58,639,000 | 15,100,000 | 13,900,000 | 61,862,000 | [2] | 54,704,000 | [2] | |||||||||||
Plan assets at fair value | 0 | [3] | 0 | [3] | 12,500,000 | 11,500,000 | ||||||||||||||||
Net liability | 61,862,000 | 54,704,000 | 2,600,000 | 2,400,000 | ||||||||||||||||||
Net periodic defined benefit pension cost | 2,994,000 | 3,647,000 | 6,352,000 | 1,600,000 | 1,400,000 | |||||||||||||||||
Total periodic costs and other charges to comprehensive income (loss) | ($5,862,000) | $4,619,000 | $4,613,000 | ($3,357,000) | $4,619,000 | $4,613,000 | ($2,800,000) | -2,500,000 | ||||||||||||||
Expected return on plan assets assumed as a part of the actuarial valuation performed to calculate the projected benefit obligation and plan assets (as a percent) | 1.25% | 1.25% | ||||||||||||||||||||
[1] | During fiscal 2014, the Company amended the SERP to limit the amount of eligible wages under the plan that count toward the SERP benefit for the active participant. As a result, unrecognized prior service cost was reduced by $4.5 million during fiscal 2014. | |||||||||||||||||||||
[2] | The projected benefit obligation was included in accrued expenses and other long-term liabilities in the Company’s consolidated balance sheets depending on the expected timing of payments. | |||||||||||||||||||||
[3] | The SERP is a non-qualified pension plan and hence the insurance policies are not considered to be plan assets. Accordingly, the table above does not include the insurance policies with cash surrender values of $53.6 million and $51.4 million as of January 31, 2015 and February 1, 2014, respectively. |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Jan. 28, 2012 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Marciano Trusts | ||||
Related Party Transactions | ||||
Number of leases under lease agreement | 4 | |||
Expenses under related party arrangement | $5,800,000 | $6,100,000 | $5,900,000 | |
Marciano Trusts | Minimum | ||||
Related Party Transactions | ||||
Lease expiration date (by year) | 2015 | |||
Marciano Trusts | Maximum | ||||
Related Party Transactions | ||||
Lease expiration date (by year) | 2020 | |||
MPM Financial LLC | ||||
Related Party Transactions | ||||
Payments under related party agreement | 1,400,000 | 600,000 | 1,300,000 | |
Marciano Consulting Agreement | ||||
Related Party Transactions | ||||
Service term | 30 years | |||
Consulting agreement term | 2 years | |||
Consulting agreement, number of years during the extension period | 1 year | |||
Expiration date of consulting agreement | 28-Jan-15 | |||
Expenses under related party arrangement | 500,000 | 500,000 | 500,000 | 500,000 |
Harmony Collection LLC | ||||
Related Party Transactions | ||||
Payments under related party agreement | $1,000,000 | $2,200,000 | $600,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) | 12 Months Ended | 1 Months Ended |
Jan. 31, 2015 | Mar. 31, 2014 | |
number_of_extension_options | ||
Property leases | ||
Operating lease expiration | ||
Lease expiration date | 30-Sep-31 | |
Retail store leases | Minimum | ||
Operating lease expiration | ||
Percentage of annual sales volume used for incremental rent on certain retail store leases | 2.00% | |
Retail store leases | Maximum | ||
Operating lease expiration | ||
Percentage of annual sales volume used for incremental rent on certain retail store leases | 12.00% | |
Equipment operating leases | ||
Operating lease expiration | ||
Lease expiration date | 30-Nov-19 | |
U.S. distribution center lease | ||
Operating lease expiration | ||
Lease term | 10 years | |
Lease expiration date (by year) | 2024 | |
Number of extension options available | 2 | |
Terms for extension options | 5 years |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Capital lease, minimum lease payments | |||
Fiscal 2016 | $1,778,000 | ||
Fiscal 2017 | 4,206,000 | ||
Fiscal 2018 | 0 | ||
Fiscal 2019 | 0 | ||
Fiscal 2020 | 0 | ||
Thereafter | 0 | ||
Total minimum lease payments | 5,984,000 | ||
Less interest | -239,000 | ||
Capital lease obligations | 5,745,000 | 8,637,000 | |
Less current portion | -1,548,000 | ||
Long-term capital lease obligations | 4,197,000 | ||
Future minimum property and equipment lease payments under capital lease and non-cancelable operating leases | |||
Fiscal 2016 | 185,786,000 | ||
Fiscal 2017 | 166,572,000 | ||
Fiscal 2018 | 145,477,000 | ||
Fiscal 2019 | 124,110,000 | ||
Fiscal 2020 | 110,054,000 | ||
Thereafter | 236,924,000 | ||
Total minimum lease payments | 968,923,000 | ||
Rental expense for all property and equipment under operating leases | 284,000,000 | 283,500,000 | 273,400,000 |
Rental expense based upon percentage of annual sales volume | 64,700,000 | 68,700,000 | 81,400,000 |
Non-Related Parties | |||
Operating Leases, minimum lease payments | |||
Fiscal 2016 | 179,269,000 | ||
Fiscal 2017 | 157,908,000 | ||
Fiscal 2018 | 140,875,000 | ||
Fiscal 2019 | 119,359,000 | ||
Fiscal 2020 | 105,147,000 | ||
Thereafter | 234,644,000 | ||
Total minimum lease payments | 937,202,000 | ||
Related Parties | |||
Operating Leases, minimum lease payments | |||
Fiscal 2016 | 4,739,000 | ||
Fiscal 2017 | 4,458,000 | ||
Fiscal 2018 | 4,602,000 | ||
Fiscal 2019 | 4,751,000 | ||
Fiscal 2020 | 4,907,000 | ||
Thereafter | 2,280,000 | ||
Total minimum lease payments | $25,737,000 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details 3) (USD $) | Jan. 31, 2015 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase commitments | $210 |
Commitments_and_Contingencies_4
Commitments and Contingencies (Details 4) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||
Jul. 19, 2012 | 2-May-13 | Jan. 31, 2015 | Jan. 31, 2015 | Jan. 31, 2015 | Jan. 31, 2015 | Nov. 08, 2013 | Jan. 30, 2015 | |
Judicial Ruling | Pending Litigation | Pending Litigation | Pending Litigation | Pending Litigation | Pending Litigation | Pending Litigation | Pending Litigation | |
U.S. | Italy | Italy | Italy | Italy | Italy | China | France | |
Gucci America, Inc. | Gucci America, Inc. | Italian Customs Agency | Italian Customs Agency | Italian Customs Agency | Italian Customs Agency | Gucci America, Inc. | Gucci America, Inc. | |
USD ($) | trademark | USD ($) | EUR (€) | Minimum | Maximum | USD ($) | trademark | |
subsidiary | ||||||||
Litigation | ||||||||
Damages sought in litigation case | $26,000,000 | $10,100,000 | € 9,000,000 | |||||
Accounting profits sought by plaintiff as compensation | 99,000,000 | |||||||
Monetary damages awarded by court | 2,300,000 | 80,000 | ||||||
Monetary damages awarded by court to be paid by the Company's licensees | $2,300,000 | |||||||
Number of Italian trademark registrations to be cancelled by plaintiff | 3 | |||||||
Number of European Community trademark registrations to be cancelled by plaintiff | 4 | 2 | ||||||
Number of international trademark registrations to be cancelled by plaintiff | 1 | |||||||
Number of subsidiaries under audit by the Italian Customs Agency | 1 | 1 | ||||||
Period under audit by the Italian Customs Agency | 1-Jul-10 | 30-Jun-12 |
Commitments_and_Contingencies_5
Commitments and Contingencies (Details 5) (USD $) | 12 Months Ended | 0 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jul. 09, 2012 | |
Redeemable noncontrolling interests put arrangements | ||||
Redeemable noncontrolling interests | $4,437,000 | $5,830,000 | $3,144,000 | |
Purchase of redeemable noncontrolling interest | 0 | 0 | 4,185,000 | |
Redeemable noncontrolling interests reconciliation | ||||
Redeemable noncontrolling interest, redemption value at the beginning of the period | 5,830,000 | 3,144,000 | ||
Foreign currency translation adjustment | -788,000 | -104,000 | ||
Noncontrolling interest capital contribution | 0 | 1,199,000 | ||
Redeemable noncontrolling interest redemption value adjustment | -605,000 | 1,591,000 | ||
Redeemable noncontrolling interest, redemption value at the end of the period | 4,437,000 | 5,830,000 | 3,144,000 | |
Guess Sud | ||||
Redeemable noncontrolling interests put arrangements | ||||
Total outstanding equity interest in subsidiary covered by put arrangement (as a percent) | 40.00% | |||
Redeemable noncontrolling interests | 3,400,000 | |||
Initial date put option can be exercised by noncontrolling owners | 30-Jan-12 | |||
Redeemable noncontrolling interests reconciliation | ||||
Redeemable noncontrolling interest, redemption value at the beginning of the period | 4,700,000 | |||
Redeemable noncontrolling interest, redemption value at the end of the period | 3,400,000 | |||
Focus | ||||
Redeemable noncontrolling interests put arrangements | ||||
Total outstanding equity interest in subsidiary covered by put arrangement (as a percent) | 25.00% | |||
Purchase of redeemable noncontrolling interest | 4,185,000 | |||
Guess Brazil | ||||
Redeemable noncontrolling interests put arrangements | ||||
Redeemable noncontrolling interests | 1,000,000 | 1,100,000 | ||
Payments to acquire controlling interest in joint venture | 1,800,000 | |||
Controlling interest in joint venture held by the Company | 60.00% | |||
Initial date put option can be exercised by noncontrolling owners (by year) | 6 years | |||
Period put arrangement can be exercised by noncontrolling interest holder after initial and subsequent exercise periods, subject to certain time restrictions | 3 years | |||
Redeemable noncontrolling interests reconciliation | ||||
Redeemable noncontrolling interest, redemption value at the beginning of the period | 1,100,000 | |||
Redeemable noncontrolling interest, redemption value at the end of the period | $1,000,000 | $1,100,000 |
Savings_Plans_Details
Savings Plans (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Savings Plans | |||
Employee contribution limit per calendar year (as a percent of compensation) | 100.00% | ||
Employer contribution limit (as a percent of compensation) | 3.00% | ||
Company's contributions to the savings plan | $1,300,000 | $1,300,000 | $1,300,000 |
Deferred Compensation Plan | |||
Deferred compensation liability | 9,100,000 | 7,500,000 | |
Deferred compensation, long-term asset | 9,400,000 | 9,100,000 | |
DCP | |||
Deferred Compensation Plan | |||
Deferred compensation plan, gains related to the change in the value of the insurance policy investments | $300,000 | $600,000 | $400,000 |
Quarterly_Information_Unaudite2
Quarterly Information (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Feb. 02, 2013 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||||||||
Summary of the unaudited quarterly financial information | ||||||||||||||||||||
Net revenue | $696,727 | [1] | $589,834 | [1] | $608,571 | [1] | $522,541 | [1] | $768,363 | [1] | $613,497 | [1] | $639,012 | [1] | $548,914 | [1] | $2,417,673 | $2,569,786 | $2,658,605 | |
Gross profit | 260,919 | [1] | 213,958 | [1] | 216,777 | [1] | 176,231 | [1] | 301,949 | [1] | 228,227 | [1] | 248,532 | [1] | 197,426 | [1] | 867,885 | 976,134 | 1,067,123 | |
Net earnings (loss) | 55,589 | [1] | 21,510 | [1] | 22,272 | [1] | -2,187 | [1] | 71,097 | [1] | 34,811 | [1] | 40,703 | [1] | 11,100 | [1] | 97,184 | 157,711 | 181,486 | |
Net earnings (loss) attributable to Guess, Inc. | 53,929 | [1] | 20,788 | [1] | 21,954 | [1] | -2,101 | [1] | 69,632 | [1] | 34,020 | [1] | 39,866 | [1] | 9,916 | [1] | 94,570 | 153,434 | 178,744 | |
Net earnings (loss) per common share attributable to common stockholders: | ||||||||||||||||||||
Basic (in dollars per share) | $0.63 | [1],[2] | $0.24 | [1],[2] | $0.26 | [1],[2] | ($0.03) | [1],[2] | $0.82 | [1],[2],[3] | $0.40 | [1],[2],[3] | $0.47 | [1],[2],[3] | $0.12 | [1],[2],[3] | $1.11 | $1.81 | $2.06 | |
Diluted (in dollars per share) | $0.63 | [1],[2] | $0.24 | [1],[2] | $0.26 | [1],[2] | ($0.03) | [1],[2] | $0.82 | [1],[2],[3] | $0.40 | [1],[2],[3] | $0.47 | [1],[2],[3] | $0.12 | [1],[2],[3] | $1.11 | $1.80 | $2.05 | |
Restructuring Charges | ||||||||||||||||||||
Restructuring charges | $2,100 | $1,900 | $6,100 | $2,300 | $0 | $12,442 | $0 | |||||||||||||
Fiscal Quarter | ||||||||||||||||||||
Number of days in fiscal period | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 98 days | 364 days | 364 days | 371 days | ||||||||
[1] | All fiscal quarters presented consisted of 13 weeks. | |||||||||||||||||||
[2] | Per common share amounts for the quarters and full years have been calculated separately. Accordingly, quarterly amounts may not add to the annual amount because of differences in the average common shares outstanding during each period. | |||||||||||||||||||
[3] | During the first quarter of fiscal 2014, the Company implemented plans to streamline its structure and reduce expenses in both Europe and North America. During the second quarter of fiscal 2014, the Company expanded these plans to include the consolidation and streamlining of certain operations in Europe and Asia. These actions resulted in restructuring charges of $2.3 million, $6.1 million, $1.9 million and $2.1 million during the first, second, third and fourth quarters of fiscal 2014, respectively. Refer to Note 9 for further detail regarding the restructuring charges. |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | |||||||||||||||||||
Net revenue | $696,727 | [1] | $589,834 | [1] | $608,571 | [1] | $522,541 | [1] | $768,363 | [1] | $613,497 | [1] | $639,012 | [1] | $548,914 | [1] | $2,417,673 | $2,569,786 | $2,658,605 |
Licensing | 111,139 | 118,206 | 117,142 | ||||||||||||||||
Restructuring charges | -2,100 | -1,900 | -6,100 | -2,300 | 0 | -12,442 | 0 | ||||||||||||
Earnings (loss) from operations | 125,912 | 222,587 | 274,525 | ||||||||||||||||
Capital expenditures | 71,498 | 75,438 | 99,591 | ||||||||||||||||
Total assets | 1,601,405 | 1,764,431 | 1,601,405 | 1,764,431 | |||||||||||||||
Restructuring Charges | |||||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | |||||||||||||||||||
Restructuring charges | 0 | -12,442 | 0 | ||||||||||||||||
Corporate Overhead | |||||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | |||||||||||||||||||
Earnings (loss) from operations | -70,059 | -73,910 | -80,450 | ||||||||||||||||
Capital expenditures | 5,740 | 2,405 | 6,523 | ||||||||||||||||
Total assets | 199,987 | 296,215 | 199,987 | 296,215 | |||||||||||||||
North American Retail | |||||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | |||||||||||||||||||
Net revenue | 1,032,601 | 1,075,475 | 1,116,836 | ||||||||||||||||
Earnings (loss) from operations | -13,734 | 39,540 | 78,285 | ||||||||||||||||
Capital expenditures | 30,704 | 29,980 | 49,759 | ||||||||||||||||
Total assets | 279,903 | 334,464 | 279,903 | 334,464 | |||||||||||||||
Europe | |||||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | |||||||||||||||||||
Net revenue | 825,136 | 903,791 | 939,599 | ||||||||||||||||
Earnings (loss) from operations | 66,231 | 97,231 | 103,975 | ||||||||||||||||
Capital expenditures | 22,930 | 30,994 | 31,930 | ||||||||||||||||
Total assets | 690,294 | 819,999 | 690,294 | 819,999 | |||||||||||||||
Asia | |||||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | |||||||||||||||||||
Net revenue | 281,090 | 292,714 | 290,655 | ||||||||||||||||
Earnings (loss) from operations | 8,013 | 25,592 | 26,525 | ||||||||||||||||
Capital expenditures | 7,150 | 7,150 | 8,614 | ||||||||||||||||
Total assets | 146,292 | 158,798 | 146,292 | 158,798 | |||||||||||||||
North American Wholesale | |||||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | |||||||||||||||||||
Net revenue | 167,707 | 179,600 | 194,373 | ||||||||||||||||
Earnings (loss) from operations | 34,173 | 38,771 | 45,008 | ||||||||||||||||
Capital expenditures | 4,958 | 4,870 | 2,725 | ||||||||||||||||
Total assets | 274,996 | 138,918 | 274,996 | 138,918 | |||||||||||||||
Licensing | |||||||||||||||||||
Segment information of net revenue, earnings (loss) from operations, capital expenditures and total assets | |||||||||||||||||||
Licensing | 111,139 | 118,206 | 117,142 | ||||||||||||||||
Earnings (loss) from operations | 101,288 | 107,805 | 101,182 | ||||||||||||||||
Capital expenditures | 16 | 39 | 40 | ||||||||||||||||
Total assets | $9,933 | $16,037 | $9,933 | $16,037 | |||||||||||||||
[1] | All fiscal quarters presented consisted of 13 weeks. |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||||||||
Information related to geographic areas in which the Company operated | |||||||||||||||||||
Net revenue | $696,727 | [1] | $589,834 | [1] | $608,571 | [1] | $522,541 | [1] | $768,363 | [1] | $613,497 | [1] | $639,012 | [1] | $548,914 | [1] | $2,417,673 | $2,569,786 | $2,658,605 |
Long-lived assets | 313,290 | 381,770 | 313,290 | 381,770 | |||||||||||||||
U.S. | |||||||||||||||||||
Information related to geographic areas in which the Company operated | |||||||||||||||||||
Net revenue | 951,137 | 988,746 | 1,028,549 | ||||||||||||||||
Long-lived assets | 130,497 | 154,251 | 130,497 | 154,251 | |||||||||||||||
Italy | |||||||||||||||||||
Information related to geographic areas in which the Company operated | |||||||||||||||||||
Net revenue | 278,523 | 306,281 | 365,299 | ||||||||||||||||
Long-lived assets | 40,609 | 54,842 | 40,609 | 54,842 | |||||||||||||||
Canada | |||||||||||||||||||
Information related to geographic areas in which the Company operated | |||||||||||||||||||
Net revenue | 238,417 | 264,107 | 290,320 | ||||||||||||||||
Long-lived assets | 22,476 | 29,803 | 22,476 | 29,803 | |||||||||||||||
South Korea | |||||||||||||||||||
Information related to geographic areas in which the Company operated | |||||||||||||||||||
Net revenue | 200,465 | 198,843 | 182,475 | ||||||||||||||||
Long-lived assets | 8,945 | 7,328 | 8,945 | 7,328 | |||||||||||||||
Other foreign countries | |||||||||||||||||||
Information related to geographic areas in which the Company operated | |||||||||||||||||||
Net revenue | 749,131 | 811,809 | 791,962 | ||||||||||||||||
Long-lived assets | $110,763 | $135,546 | $110,763 | $135,546 | |||||||||||||||
[1] | All fiscal quarters presented consisted of 13 weeks. |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||
Net earnings attributable to Guess, Inc. | $53,929 | [1] | $20,788 | [1] | $21,954 | [1] | ($2,101) | [1] | $69,632 | [1] | $34,020 | [1] | $39,866 | [1] | $9,916 | [1] | $94,570 | $153,434 | $178,744 |
Less net earnings attributable to nonvested restricted stockholders | 662 | 1,243 | 1,347 | ||||||||||||||||
Net earnings attributable to common stockholders | $93,908 | $152,191 | $177,397 | ||||||||||||||||
Weighted average common shares used in basic computations | 84,604,000 | 84,271,000 | 86,262,000 | ||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||
Stock options and restricted stock units (in shares) | 233,000 | 251,000 | 278,000 | ||||||||||||||||
Weighted average common shares used in diluted computations | 84,837,000 | 84,522,000 | 86,540,000 | ||||||||||||||||
Net earnings per common share attributable to common stockholders: | |||||||||||||||||||
Basic (in dollars per share) | $0.63 | [1],[2] | $0.24 | [1],[2] | $0.26 | [1],[2] | ($0.03) | [1],[2] | $0.82 | [1],[2],[3] | $0.40 | [1],[2],[3] | $0.47 | [1],[2],[3] | $0.12 | [1],[2],[3] | $1.11 | $1.81 | $2.06 |
Diluted (in dollars per share) | $0.63 | [1],[2] | $0.24 | [1],[2] | $0.26 | [1],[2] | ($0.03) | [1],[2] | $0.82 | [1],[2],[3] | $0.40 | [1],[2],[3] | $0.47 | [1],[2],[3] | $0.12 | [1],[2],[3] | $1.11 | $1.80 | $2.05 |
Antidilutive securities excluded from computation of earnings per share | |||||||||||||||||||
Antidilutive equity awards excluded from computation of diluted weighted average common shares | 1,551,511 | 1,251,927 | 1,364,703 | ||||||||||||||||
Performance awards/units | |||||||||||||||||||
Antidilutive securities excluded from computation of earnings per share | |||||||||||||||||||
Antidilutive equity awards excluded from computation of diluted weighted average common shares | 159,700 | ||||||||||||||||||
[1] | All fiscal quarters presented consisted of 13 weeks. | ||||||||||||||||||
[2] | Per common share amounts for the quarters and full years have been calculated separately. Accordingly, quarterly amounts may not add to the annual amount because of differences in the average common shares outstanding during each period. | ||||||||||||||||||
[3] | During the first quarter of fiscal 2014, the Company implemented plans to streamline its structure and reduce expenses in both Europe and North America. During the second quarter of fiscal 2014, the Company expanded these plans to include the consolidation and streamlining of certain operations in Europe and Asia. These actions resulted in restructuring charges of $2.3 million, $6.1 million, $1.9 million and $2.1 million during the first, second, third and fourth quarters of fiscal 2014, respectively. Refer to Note 9 for further detail regarding the restructuring charges. |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||||||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | 20-May-14 | 9-May-06 | 1-May-08 | Apr. 08, 2014 | Jul. 11, 2013 | Oct. 30, 2008 | Jan. 23, 2002 | Jul. 30, 1996 | |
plan | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Number of share-based compensation plans | 4 | ||||||||||
Share-based compensation expense | $15,342,000 | $13,949,000 | $16,285,000 | ||||||||
Number of Shares | |||||||||||
Options outstanding at the beginning of the period (in shares) | 1,781,926 | ||||||||||
Granted (in shares) | 456,950 | ||||||||||
Exercised (in shares) | -96,158 | ||||||||||
Forfeited (in shares) | -325,587 | ||||||||||
Expired (in shares) | 0 | ||||||||||
Options outstanding at the end of the period (in shares) | 1,817,131 | 1,781,926 | |||||||||
Exercisable at the end of the period (in shares) | 1,274,541 | ||||||||||
Options exercisable and expected to vest at the end of the period (in shares) | 1,749,715 | ||||||||||
Weighted Average Exercise Price | |||||||||||
Options outstanding at the beginning of the period (in dollars per share) | $30.46 | ||||||||||
Granted (in dollars per share) | $27.97 | ||||||||||
Exercised (in dollars per share) | $12.92 | ||||||||||
Forfeited (in dollars per share) | $31.27 | ||||||||||
Expired (in dollars per share) | $0 | ||||||||||
Options outstanding at the end of the period (in dollars per share) | $30.61 | $30.46 | |||||||||
Exercisable at the end of the period (in dollars per share) | $31.89 | ||||||||||
Options exercisable and expected to vest at the end of the period (in dollars per share) | $30.74 | ||||||||||
Weighted Average Remaining Contractual Term (Years) | |||||||||||
Options outstanding at the end of the period | 6 years 5 months 11 days | ||||||||||
Exercisable at the end of the period | 5 years 5 months 25 days | ||||||||||
Options exercisable and expected to vest at the end of the period | 6 years 4 months 1 day | ||||||||||
Aggregate Intrinsic Value | |||||||||||
Options outstanding at the end of the period (in dollars) | 69,000 | ||||||||||
Exercisable at the end of the period (in dollars) | 69,000 | ||||||||||
Options exercisable and expected to vest at the end of the period (in dollars) | 69,000 | ||||||||||
Share-Based Compensation, Additional Disclosures | |||||||||||
Weighted average fair values of stock options granted during the period (in dollars per share) | $5.99 | $6.38 | $8.92 | ||||||||
Total intrinsic value of options exercised (in dollars) | 900,000 | 2,200,000 | 3,400,000 | ||||||||
Cash received from option exercises | 1,200,000 | 5,000,000 | 5,100,000 | ||||||||
Excess tax benefits from share-based compensation included in cash flows from financing activities | 440,000 | 698,000 | 1,302,000 | ||||||||
Unrecognized compensation cost, adjusted for estimated forfeitures, related to nonvested stock options | 2,900,000 | ||||||||||
Equity Incentive Plan 2004 | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Extended expiration period for share-based compensation plan (in years) | 10 years | ||||||||||
Authorized number of shares | 15,000,000 | 20,000,000 | 15,000,000 | ||||||||
Shares available for grant under the plan | 6,593,723 | 12,151,436 | |||||||||
Employee Stock Purchase Plan | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Authorized number of shares | 4,000,000 | ||||||||||
Purchase price of the Company's common stock determined as the lower of the closing price at the beginning or end of the quarterly stock purchase period (expressed as a percentage) | 85.00% | ||||||||||
Share-based compensation expense | 237,000 | 234,000 | 315,000 | ||||||||
Valuation Assumptions | |||||||||||
Risk-free interest rate | 0.00% | 0.10% | 0.10% | ||||||||
Expected stock price volatility | 29.00% | 29.70% | 46.40% | ||||||||
Expected dividend yield | 3.70% | 3.10% | 2.80% | ||||||||
Expected life | 3 months | 3 months | 3 months | ||||||||
Share-Based Compensation, Additional Disclosures | |||||||||||
Weighted average fair values of stock options granted during the period (in dollars per share) | $5.02 | $5.46 | $6.84 | ||||||||
2006 Non-Employee Directors Stock Grant and Stock Option Plan | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Authorized number of shares | 2,000,000 | 1,000,000 | |||||||||
Shares available for grant under the plan | 827,463 | 860,432 | |||||||||
Additional number of shares authorized for issuance under share-based compensation plan | 1,000,000 | ||||||||||
Stock option | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Share-based compensation expense | 2,106,000 | 2,490,000 | 4,633,000 | ||||||||
Valuation Assumptions | |||||||||||
Risk-free interest rate | 0.80% | 0.50% | 0.40% | ||||||||
Expected stock price volatility | 36.10% | 39.70% | 46.80% | ||||||||
Expected dividend yield | 3.30% | 3.00% | 2.60% | ||||||||
Expected life | 3 years 8 months 25 days | 3 years 7 months 25 days | 3 years 7 months 6 days | ||||||||
Share-Based Compensation, Additional Disclosures | |||||||||||
Excess tax benefits from share-based compensation included in cash flows from financing activities | 200,000 | ||||||||||
Excess tax shortfall included in cash flows from operating activities | 500,000 | ||||||||||
Income tax benefit on recognized compensation cost | 700,000 | ||||||||||
Weighted average period for recognition of unrecognized compensation cost (in years/months/days) | 1 year 7 months 17 days | ||||||||||
Stock option | Selling, general and administrative expenses | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Share-based compensation expense | 2,106,000 | ||||||||||
Stock option | Equity Incentive Plan 2004 | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Term of award | 10 years | ||||||||||
Stock option | Equity Incentive Plan 2004 | Vesting, Tranche one | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Vesting rights (as a percentage) | 25.00% | ||||||||||
Vesting period | 9 months | 9 months | 9 months | ||||||||
Stock option | Equity Incentive Plan 2004 | Vesting, Tranche two | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Vesting rights (as a percentage) | 25.00% | ||||||||||
Vesting period | 1 year | 1 year | 1 year | ||||||||
Stock option | Equity Incentive Plan 2004 | Vesting, Tranche three | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Vesting rights (as a percentage) | 25.00% | ||||||||||
Vesting period | 1 year | 1 year | 1 year | ||||||||
Stock option | Equity Incentive Plan 2004 | Vesting, Tranche four | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Vesting rights (as a percentage) | 25.00% | ||||||||||
Vesting period | 1 year | 1 year | 1 year | ||||||||
Nonvested stock awards or units | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Nonvested stock awards or units granted (in shares) | 631,645 | ||||||||||
Share-based compensation expense | 12,999,000 | 11,225,000 | 11,337,000 | ||||||||
Share-Based Compensation, Additional Disclosures | |||||||||||
Excess tax benefits from share-based compensation included in cash flows from financing activities | 200,000 | ||||||||||
Excess tax shortfall included in cash flows from operating activities | 1,000,000 | ||||||||||
Income tax benefit on recognized compensation cost | 4,600,000 | ||||||||||
Weighted average period for recognition of unrecognized compensation cost (in years/months/days) | 1 year 5 months 17 days | ||||||||||
Nonvested stock awards or units | Selling, general and administrative expenses | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Share-based compensation expense | $12,999,000 | ||||||||||
Nonvested stock awards or units | Equity Incentive Plan 2004 | Vesting, Tranche one | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Vesting rights (as a percentage) | 25.00% | ||||||||||
Vesting period | 9 months | 9 months | 9 months | ||||||||
Nonvested stock awards or units | Equity Incentive Plan 2004 | Vesting, Tranche two | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Vesting rights (as a percentage) | 25.00% | ||||||||||
Vesting period | 1 year | 1 year | 1 year | ||||||||
Nonvested stock awards or units | Equity Incentive Plan 2004 | Vesting, Tranche three | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Vesting rights (as a percentage) | 25.00% | ||||||||||
Vesting period | 1 year | 1 year | 1 year | ||||||||
Nonvested stock awards or units | Equity Incentive Plan 2004 | Vesting, Tranche four | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Vesting rights (as a percentage) | 25.00% | ||||||||||
Vesting period | 1 year | 1 year | 1 year | ||||||||
Restricted stock units (RSUs) | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Vesting period | 5 years | ||||||||||
Nonvested stock awards or units granted (in shares) | 167,000 | ||||||||||
Period which award is subject to a performance condition | 5 years | ||||||||||
Restricted stock units (RSUs) | Paul Marciano | April 8, 2014 | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Nonvested stock awards or units granted (in shares) | 100,000 | ||||||||||
Period which award is subject to a performance condition | 1 year | ||||||||||
Restricted stock units (RSUs) | Paul Marciano | July 11, 2013 | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Nonvested stock awards or units granted (in shares) | 100,000 | ||||||||||
Period which award is subject to a performance condition | 9 months | ||||||||||
Restricted stock units (RSUs) | Paul Marciano | Vesting, Tranche one | April 8, 2014 | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Vesting period | 10 months | ||||||||||
Restricted stock units (RSUs) | Paul Marciano | Vesting, Tranche one | July 11, 2013 | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Vesting period | 7 months | ||||||||||
Restricted stock units (RSUs) | Paul Marciano | Vesting, Tranche two | April 8, 2014 | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Vesting period | 1 year | ||||||||||
Restricted stock units (RSUs) | Paul Marciano | Vesting, Tranche two | July 11, 2013 | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Vesting period | 1 year | ||||||||||
Restricted stock units (RSUs) | Paul Marciano | Vesting, Tranche three | April 8, 2014 | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Vesting period | 1 year | ||||||||||
Restricted stock units (RSUs) | Paul Marciano | Vesting, Tranche three | July 11, 2013 | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Vesting period | 1 year | ||||||||||
Performance awards/units | Paul Marciano | April 8, 2014 | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Vesting rights (as a percentage) | 0.00% | ||||||||||
Nonvested stock awards or units granted (in shares) | 159,700 | ||||||||||
Period which award is subject to a performance condition | 1 year | ||||||||||
Performance awards/units | Paul Marciano | July 11, 2013 | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Vesting rights (as a percentage) | 84.00% | ||||||||||
Nonvested stock awards or units granted (in shares) | 143,700 | ||||||||||
Vesting date | 1-Feb-16 | ||||||||||
Period which award is subject to a performance condition | 9 months | ||||||||||
Performance awards/units | Equity Incentive Plan 2004 | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Extended expiration for the ability to grant certain performance-based awards under the share-based compensation plan (by calendar year) | 2019 | ||||||||||
Performance options | |||||||||||
Disclosure of share-based compensation information under stock plans | |||||||||||
Vesting period | 4 years | ||||||||||
Period which award is subject to a performance condition | 1 year | ||||||||||
Number of Shares | |||||||||||
Granted (in shares) | 563,400 |
ShareBased_Compensation_Detail1
Share-Based Compensation (Details 2) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 12, 2012 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Nonvested stock awards or units | ||||
Number of Shares/Units | ||||
Nonvested at the beginning of the period (in shares) | 963,655 | |||
Granted (in shares) | 631,645 | |||
Vested (in shares) | -431,713 | |||
Forfeited (in shares) | -172,000 | |||
Nonvested at the end of the period (in shares) | 991,587 | 963,655 | ||
Weighted Average Grant Date Fair Value | ||||
Nonvested at the beginning of the period (in dollars per share) | $29.76 | |||
Granted (in dollars per share) | $28.12 | $28.34 | $29.71 | |
Vested (in dollars per share) | $30.12 | |||
Forfeited (in dollars per share) | $29.06 | |||
Nonvested at the end of the period (in dollars per share) | $28.71 | $29.76 | ||
Additional disclosures, awards other than options | ||||
Total fair value at grant date of previously nonvested stock awards/units that were vested during the period | $13 | $9 | $17.50 | |
Total intrinsic value of nonvested stock awards/units that vested during the period | 9.9 | 8.3 | 15 | |
Total intrinsic value of nonvested stock awards/units outstanding | 18.6 | |||
Unrecognized compensation cost, adjusted for estimated forfeitures, related to nonvested stock awards/units | $16.40 | |||
Employee Stock Purchase Plan | ||||
Additional disclosures, awards other than options | ||||
Minimum holding period for shares purchased after April 1, 2009 under the ESPP (in months) | 6 months | |||
Period before the end of each fiscal quarter prohibited for trading, as per Company's securities trading policy (in days) | 14 days | |||
Period after public announcement of earnings prohibited for trading, as per Company's securities trading policy (in days) | 2 days | |||
Extended expiration period (in years) | 10 years | |||
Common stock issued during the period (in shares) | 47,538 | 43,265 | 50,013 | |
Average price per share (in dollars per share) | $21.20 | $22.64 | $23.72 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 12 Months Ended | |
Jan. 31, 2015 | Feb. 01, 2014 | |
Liabilities: | ||
Deferred compensation obligations | $9,100,000 | $7,500,000 |
Transfers of financial instruments between the three levels of fair value hierarchy | ||
Value of transfers between levels | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | ||
Assets: | ||
Foreign exchange currency contracts, Assets | 15,542,000 | 2,116,000 |
Available-for-sale securities | 36,000 | 5,732,000 |
Total Assets | 15,578,000 | 7,848,000 |
Liabilities: | ||
Foreign exchange currency contracts, Liabilities | 0 | 1,712,000 |
Interest rate swap | 270,000 | 581,000 |
Deferred compensation obligations | 9,133,000 | 7,498,000 |
Total Liabilities | 9,403,000 | 9,791,000 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | ||
Assets: | ||
Foreign exchange currency contracts, Assets | 0 | 0 |
Available-for-sale securities | 36,000 | 5,732,000 |
Total Assets | 36,000 | 5,732,000 |
Liabilities: | ||
Foreign exchange currency contracts, Liabilities | 0 | 0 |
Interest rate swap | 0 | 0 |
Deferred compensation obligations | 0 | 0 |
Total Liabilities | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | ||
Assets: | ||
Foreign exchange currency contracts, Assets | 15,542,000 | 2,116,000 |
Available-for-sale securities | 0 | 0 |
Total Assets | 15,542,000 | 2,116,000 |
Liabilities: | ||
Foreign exchange currency contracts, Liabilities | 0 | 1,712,000 |
Interest rate swap | 270,000 | 581,000 |
Deferred compensation obligations | 9,133,000 | 7,498,000 |
Total Liabilities | 9,403,000 | 9,791,000 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | ||
Assets: | ||
Foreign exchange currency contracts, Assets | 0 | 0 |
Available-for-sale securities | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Foreign exchange currency contracts, Liabilities | 0 | 0 |
Interest rate swap | 0 | 0 |
Deferred compensation obligations | 0 | 0 |
Total Liabilities | $0 | $0 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 12 Months Ended | |
Jan. 31, 2015 | Feb. 01, 2014 | |
Available-for-sale securities | ||
Accumulated unrealized gains, net of tax, included in accumulated other comprehensive income (loss) | $103,000 | |
Corporate bonds | Short-term investments and other assets | ||
Available-for-sale securities | ||
Available-for-sale securities, included in short-term investments and other assets depending on their respective maturity dates | 5,100,000 | |
Marketable equity securities | ||
Available-for-sale securities | ||
Proceeds from sale of available-for-sale securities | 600,000 | |
Marketable equity securities | Other income/expense | ||
Available-for-sale securities | ||
Gains recognized on sale of available-for-sale securities | 100,000 | |
Marketable equity securities | Short-term investments and other assets | ||
Available-for-sale securities | ||
Available-for-sale securities, included in short-term investments and other assets depending on their respective maturity dates | $600,000 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS: | ||
Derivatives, assets | $15,542 | $2,116 |
LIABILITIES: | ||
Derivatives, liabilities | 270 | 2,293 |
Derivatives designated as hedging instruments: | Foreign exchange currency contracts | Other current assets | Cash flow hedges | ||
ASSETS: | ||
Derivatives, assets | 6,597 | 977 |
Derivatives designated as hedging instruments: | Foreign exchange currency contracts | Accrued expenses | Cash flow hedges | ||
LIABILITIES: | ||
Derivatives, liabilities | 0 | 672 |
Derivatives not designated as hedging instruments: | ||
LIABILITIES: | ||
Derivatives, liabilities | 270 | 1,621 |
Derivatives not designated as hedging instruments: | Foreign exchange currency contracts | Other current assets | ||
ASSETS: | ||
Derivatives, assets | 8,945 | 1,139 |
Derivatives not designated as hedging instruments: | Foreign exchange currency contracts | Accrued expenses | ||
LIABILITIES: | ||
Derivatives, liabilities | 0 | 1,040 |
Derivatives not designated as hedging instruments: | Interest rate swaps | Other long-term liabilities | ||
LIABILITIES: | ||
Derivatives, liabilities | $270 | $581 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details 2) (Cash flow hedges, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 |
Canada | ||
Forward contracts designated as hedging instruments | ||
U.S. dollar forward contracts purchased, total notional amount | $64.90 | |
U.S. dollar forward contracts outstanding | 24.5 | 15.2 |
U.S. dollar forward contracts outstanding, maximum remaining maturity period (in months) | 11 months | |
Europe | ||
Forward contracts designated as hedging instruments | ||
U.S. dollar forward contracts purchased, total notional amount | 60.2 | |
U.S. dollar forward contracts outstanding | $50.80 | $87.10 |
U.S. dollar forward contracts outstanding, maximum remaining maturity period (in months) | 11 months |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Details 3) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |||
Net after-tax derivative activity recorded in accumulated other comprehensive income (loss) | ||||||
Beginning balance loss | ($113) | ($1,782) | ||||
Net gains from changes in cash flow hedges | 6,734 | 4,092 | ||||
Net (gains) losses reclassified to earnings | 536 | -2,423 | ||||
Ending balance gain (loss) | 7,157 | -113 | ||||
Foreign exchange currency cash flow hedge unrealized gain to be recognized in cost of product sales or other income over the following 12 months | 7,157 | |||||
Cost of sales | Cash flow hedges | ||||||
Gains (losses) before taxes recognized on the derivative instruments designated as hedging instruments in OCI and net earnings | ||||||
Gain recognized in OCI | 6,962 | 4,595 | 2,126 | |||
Gain (loss) reclassified from accumulated OCI into earnings | -272 | [1] | 3,050 | [1] | 8,700 | [1] |
Other income/expense | Cash flow hedges | ||||||
Gains (losses) before taxes recognized on the derivative instruments designated as hedging instruments in OCI and net earnings | ||||||
Gain recognized in OCI | 922 | 370 | 105 | |||
Gain (loss) reclassified from accumulated OCI into earnings | $165 | [1] | $9 | [1] | $628 | [1] |
[1] | The ineffective portion was immaterial during fiscal 2015, fiscal 2014 and fiscal 2013 and was recorded in net earnings and included in interest income/expense. |
Derivative_Financial_Instrumen5
Derivative Financial Instruments (Details 4) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Other income/expense | |||
Derivative instruments not designated as hedging instruments | |||
Gain (loss) on foreign exchange currency contracts recognized in earnings before taxes | $14,723,000 | $1,843,000 | ($20,000) |
Gain on interest rate swaps recognized in earnings before taxes | 242,000 | 238,000 | 166,000 |
Derivatives not designated as hedging instruments: | Euro | |||
Derivative instruments not designated as hedging instruments | |||
U.S. dollar forward contracts outstanding | 59,300,000 | 111,800,000 | |
U.S. dollar forward contracts outstanding, maximum remaining maturity period (in months) | 11 months | ||
Derivatives not designated as hedging instruments: | Canadian dollar | |||
Derivative instruments not designated as hedging instruments | |||
U.S. dollar forward contracts outstanding | $19,900,000 | $13,800,000 | |
U.S. dollar forward contracts outstanding, maximum remaining maturity period (in months) | 5 months |
Share_Repurchase_Program_Detai
Share Repurchase Program (Details) (USD $) | 12 Months Ended | ||||
Feb. 01, 2014 | Feb. 02, 2013 | Jan. 31, 2015 | Mar. 14, 2011 | Jun. 26, 2012 | |
Share Repurchase Program | |||||
Shares repurchased, aggregate cost | $22,099,000 | $140,262,000 | |||
2011 Share Repurchase Program | Common Stock | |||||
Share Repurchase Program | |||||
Number of common stock repurchased (in shares) | 5,036,418 | ||||
Shares repurchased, aggregate cost | 140,100,000 | ||||
Value of common stock remaining to be repurchased | 0 | ||||
2011 Share Repurchase Program | Common Stock | Maximum | |||||
Share Repurchase Program | |||||
Value of common stock authorized to be repurchased | 250,000,000 | ||||
2012 Share Repurchase Program | Common Stock | |||||
Share Repurchase Program | |||||
Number of common stock repurchased (in shares) | 0 | ||||
Shares repurchased, aggregate cost | 0 | 0 | |||
Value of common stock remaining to be repurchased | 495,800,000 | ||||
2012 Share Repurchase Program | Common Stock | Maximum | |||||
Share Repurchase Program | |||||
Value of common stock authorized to be repurchased | 500,000,000 | ||||
2011 and 2012 Share Repurchase Programs | Maximum | |||||
Share Repurchase Program | |||||
Number of common stock authorized to be repurchased (in shares) | 0 | ||||
2011 and 2012 Share Repurchase Programs | Minimum | |||||
Share Repurchase Program | |||||
Number of common stock authorized to be repurchased (in shares) | 0 | ||||
2011 and 2012 Share Repurchase Programs | Common Stock | |||||
Share Repurchase Program | |||||
Number of common stock repurchased (in shares) | 882,551 | ||||
Shares repurchased, aggregate cost | $22,100,000 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Mar. 18, 2015 | |
Subsequent Events | ||||
Cash dividend announced on common stock (in dollars per share) | $0.90 | $0.80 | $2 | |
Dividend Declared | ||||
Subsequent Events | ||||
Cash dividend announced on common stock (in dollars per share) | $0.23 | |||
Payment date of cash dividend | 17-Apr-15 | |||
Record date of cash dividend | 1-Apr-15 |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Reconciliation of valuation and qualifying accounts | |||
Balance at Beginning of Period | $40,811 | $41,639 | $38,131 |
Costs Charged (Credited) to Expenses | 94,003 | 130,641 | 122,221 |
Deductions and Write-offs | -100,781 | -131,469 | -118,713 |
Balance at End of Period | 34,033 | 40,811 | 41,639 |
Allowance for accounts receivable | |||
Reconciliation of valuation and qualifying accounts | |||
Balance at Beginning of Period | 20,118 | 20,588 | 19,423 |
Costs Charged (Credited) to Expenses | 28,826 | 32,339 | 39,322 |
Deductions and Write-offs | -32,891 | -32,809 | -38,157 |
Balance at End of Period | 16,053 | 20,118 | 20,588 |
Allowance for royalties receivable | |||
Reconciliation of valuation and qualifying accounts | |||
Balance at Beginning of Period | 409 | 294 | 402 |
Costs Charged (Credited) to Expenses | -156 | 190 | -108 |
Deductions and Write-offs | 0 | -75 | 0 |
Balance at End of Period | 253 | 409 | 294 |
Allowance for sales returns | |||
Reconciliation of valuation and qualifying accounts | |||
Balance at Beginning of Period | 20,284 | 20,757 | 18,306 |
Costs Charged (Credited) to Expenses | 65,333 | 98,112 | 83,007 |
Deductions and Write-offs | -67,890 | -98,585 | -80,556 |
Balance at End of Period | $17,727 | $20,284 | $20,757 |