Income Taxes

9 Months Ended

Oct. 29, 2022

Income Taxes [Abstract]

Income Taxes

(7) Income Taxes

The effective income tax rate for the thirteen weeks ended October 29, 2022 was a provision of 24.1%, or $7.3 million, compared to a provision of 23.1%, or $7.0 million, during the thirteen weeks ended October 30, 2021. The increase in the effective income tax rate for the thirteen weeks ended October 29, 2022 compared to October 30, 2021 was primarily driven by the impact of discrete items recognized, primarily stock-based compensation, in the thirteen weeks ended October 29, 2022.

The Company’s effective income tax rate for the thirty-nine weeks ended October 29, 2022 was a provision of 22.5%, or $14.4 million, compared to a provision of 23.3%, or $34.3 million, for the thirty-nine weeks ended October 30, 2021. The decrease in the effective income tax rate for the thirty-nine weeks ended October 29, 2022 compared to October 30, 2021 was primarily driven by the impact of discrete items recognized in the thirty-nine weeks ended October 29, 2022 related to a decrease in the overall state tax rate of $1.1 million.

The Company is subject to tax in the United States. The Company files a consolidated U.S. income tax return for federal income tax purposes. The Company is no longer subject to income tax examinations by U.S. federal, or state and local tax authorities for tax years 2016 and prior.

Management believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues arise as a result of a tax audit, and are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs.