Asset Impairments

9 Months Ended

Nov. 02, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

4. Asset Impairments

Long-lived Asset Impairments

For the thirteen and thirty-nine weeks ended November 2, 2024, the Company recorded noncash impairment charges of $0.1 million and $0.4 million, respectively, related to leasehold improvements at certain store locations driven by the actual performance at these locations. The Company reduced the net carrying value of certain long-lived assets to their estimated fair value, which was determined using a discounted cash flows method.

For the thirteen and thirty-nine weeks ended October 28, 2023, the Company recorded an immaterial amount of impairment charges.

Goodwill and Other Intangible Assets

The balance of goodwill was $59.7 million at November 2, 2024 and February 3, 2024. The accumulated goodwill impairment losses as of November 2, 2024 were $137.3 million.

A summary of other intangible assets as of November 2, 2024 and February 3, 2024 is as follows (in thousands):


		November 2, 2024
	Weighted Average Useful Life (Years)	Gross		Accumulated Amortization		Accumulated Impairment		Carrying Amount
Indefinite-lived:
Trade name	N/A	$	58,100	$	—	$	24,100	$	34,000
Definite-lived:
Customer relationships	13.2		134,200		103,357		2,620		28,223
Total intangible assets		$	192,300	$	103,357	$	26,720	$	62,223


		February 3, 2024
	Weighted Average Useful Life (Years)	Gross		Accumulated Amortization		Accumulated Impairment		Carrying Amount
Indefinite-lived:
Trade name	N/A	$	58,100	$	—	$	24,100	$	34,000
Definite-lived:
Customer relationships	13.2		134,200		99,334		2,620		32,246
Total intangible assets		$	192,300	$	99,334	$	26,720	$	66,246

Total amortization expense for these amortizable intangible assets was $1.2 million and $1.7 million for the thirteen weeks ended November 2, 2024 and October 28, 2023, respectively, and $4.0 million and $5.2 million for the thirty-nine weeks ended November 2, 2024 and October 28, 2023, respectively.

The estimated amortization expense for each of the next five years and thereafter is as follows (in thousands):


Fiscal Year	Estimated Amortization Expense
2024 (1)	$	1,208
2025		4,693
2026		4,556
2027		4,418
2028		4,246
Thereafter		9,102
Total	$	28,223

(1)

Represents amortization expense for the remainder of Fiscal Year 2024.

Impairment Tests

Goodwill and indefinite-lived intangible assets are not amortized but are reviewed for impairment at least annually, or more frequently when events or changes in circumstances indicate that the carrying value may not be recoverable. Definite-lived intangible assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable. Judgments regarding indicators of potential impairment are based on market conditions and operational performance of the business.

During the thirteen and thirty-nine weeks ended November 2, 2024 and October 28, 2023, the Company did not identify any events or circumstances that indicated the fair value of a reporting unit was less than its carrying value.