INCOME TAXES (Tables)

12 Months Ended

Jan. 28, 2023

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) Before Taxes, Domestic and Foreign

The components of Income (loss) before provision (benefit) for income taxes were as follows:

	Fiscal Years Ended
	January 28, 2023		January 29, 2022		January 30, 2021
	(in thousands)
Domestic	$	(61,065)	$	198,173	$	(250,876)
Foreign	46,303		58,857		39,118
Total income (loss) before provision (benefit) for income taxes	$	(14,762)	$	257,030	$	(211,758)

Schedule of Components of Provision (Benefit) for Income Taxes

The components of the Company’s Provision (benefit) for income taxes consisted of the following:

	Fiscal Years Ended
	January 28, 2023			January 29, 2022			January 30, 2021
	(in thousands)
Current:
Federal	$	4,172		$	29,406		$	(45,072)
State and local	(1,193)			7,389			212
Foreign	(2,842)			7,218			5,728
	137			44,013			(39,132)
Deferred:
Federal	(12,030)			14,517			(14,274)
State and local	(2,712)			8,780			(15,968)
Foreign	981			2,549			(2,019)
	(13,761)			25,846			(32,261)
Total provision (benefit) for income taxes	$	(13,624)		$	69,859		$	(71,393)
Effective tax rate	92.3		%	27.2		%	33.7		%

Schedule of Reconciliation of Tax Provision (Benefit)

A reconciliation between the calculated tax provision (benefit) based on the U.S. federal statutory rate of 21.0% and the effective tax rate for Fiscal 2022, Fiscal 2021, and Fiscal 2020 follows:

	Fiscal Years Ended
	January 28, 2023		January 29, 2022		January 30, 2021
	(in thousands)
Calculated income tax provision (benefit) at U.S. federal statutory rate	$	(3,100)	$	53,976	$	(44,471)
State and local income taxes, net of federal benefit	(3,812)		14,394		(12,447)
Foreign tax rate differential (1)	(5,498)		(3,598)		(5,791)
Non-deductible expenses	3,696		7,301		2,654
Excess tax detriment (benefit) related to stock compensation	816		(293)		2,051
Unrecognized tax benefits	(5,324)		1,050		1,150
Change in valuation allowance	163		358		(10)
Global intangible low-taxed income	1,760		1,476		7,815
Federal tax credits	(2,934)		(2,882)		(1,422)
CARES Act Carryback (2)	—		—		(20,954)
Other	609		(1,923)		32
Total provision (benefit) for income taxes	$	(13,624)	$	69,859	$	(71,393)

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(1)     The Company has substantial operations in Hong Kong, which has a lower statutory income tax rate as compared to the U.S. The Company’s foreign effective tax rate for Fiscal 2022, Fiscal 2021, and Fiscal 2020 was 9.8%, 16.6%, and 7.7%, respectively. This rate fluctuates from year to year in response to changes in the mix of income by country, as well as changes in tax laws in foreign jurisdictions.

(2)     The CARES Act permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. The Fiscal 2020 tax loss of approximately $150.0 million was carried back to earlier tax years when the corporate tax rate was 35.0%, compared to the current corporate tax rate of 21.0%, resulting in a tax benefit of $21.0 million.

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences which give rise to deferred tax assets and liabilities were as follows:

	January 28, 2023		January 29, 2022
	(in thousands)
Operating lease liabilities	$	48,079	$	59,283
Right-of-use assets	(43,576)		(51,617)
Stock-based compensation	2,461		2,863
Reserves	12,038		12,475
Inventory	4,612		4,570
Property and equipment, net	(2,407)		(6,296)
Capitalized research and development, net	17,856		3,569
Tradenames and customer databases, net	(3,202)		(2,200)
Prepaid expenses	(3,704)		(1,481)
Foreign and state tax on unremitted earnings	(1,554)		(1,554)
Net operating loss carryforward	3,453		2,900
Tax credits	2,727		1,746
Interest expense carryforward	1,106		—
Valuation allowance	(1,273)		(1,149)
Total deferred tax asset, net	$	36,616	$	23,109

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible

A reconciliation of the gross amounts of unrecognized tax benefits, excluding accrued interest and penalties, is as follows:

	Fiscal Years Ended
	January 28, 2023		January 29, 2022
	(in thousands)
Beginning Balance	$	8,937	$	8,060
Additions for current year tax positions	750		1,155
Additions for prior year tax positions	261		67
Reductions for prior year tax positions	(6,322)		(317)
Impact of foreign currency translation	—		(28)
Ending Balance	$	3,626	$	8,937