Leases

12 Months Ended

Feb. 03, 2024

Leases [Abstract]

Leases

13.  Leases

The Company leases retail stores, office space and equipment under operating leases. As of February 3, 2024, right-of-use operating lease assets, which are recorded in operating lease assets in the consolidated balance sheets, totaled $42.7 million, and operating lease liabilities, which are recorded in current portion of operating lease liabilities and operating lease liabilities, totaled $43.0 million.

In determining our operating lease assets and operating lease liabilities, we apply an incremental borrowing rate to the minimum lease payments within each lease agreement. GAAP requires the use of the rate implicit in the lease whenever that rate is readily determinable; furthermore, if the implicit rate is not readily determinable, a lessee may use its incremental borrowing rate. The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. To estimate our specific incremental borrowing rates that align with applicable lease terms, we utilized a model consistent with the credit quality of our outstanding debt instruments.

Renewal options of five to 10 years exist on the majority of leased properties. The Company has sole discretion in exercising the lease renewal options. We do not recognize operating lease assets or operating lease liabilities at lease inception for renewal periods unless it has been determined that we are reasonably certain of exercising the renewal options. The depreciable life of operating lease assets and related leasehold improvements is limited by the expected lease term.

Contingent rentals on certain leases are based on a percentage of annual sales in excess of specified amounts. Other contingent rentals are based entirely on a percentage of sales. The Company’s operating lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table summarizes the Company’s operating and finance leases:

(in thousands of dollars)	Classification - Consolidated Balance Sheets	February 3, 2024		January 28, 2023
Assets
Finance lease assets	Property and equipment, net	$	—	$	—
Operating lease assets	Operating lease assets		42,681		33,821
Total leased assets		$	42,681	$	33,821
Liabilities
Current
Finance	Current portion of finance lease liabilities	$	—	$	—
Operating	Current portion of operating lease liabilities		11,252		9,702
Noncurrent
Finance	Finance lease liabilities		—		—
Operating	Operating lease liabilities		31,728		24,164
Total lease liabilities		$	42,980	$	33,866

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Lease Cost

(in thousands of dollars)	Classification - Consolidated Statements of Operations	Fiscal 2023		Fiscal 2022		Fiscal 2021
Operating lease cost (a)	Rentals	$	21,569	$	23,169	$	22,594
Finance lease cost
Amortization of leased assets	Depreciation and amortization		—		—		247
Interest on lease liabilities	Interest and debt expense, net		—		—		31
Net lease cost		$	21,569	$	23,169	$	22,872

(a) Includes short term lease costs of $4.4 million and $5.2 million and variable lease costs, including contingent rent, of $3.7 million and $3.3 million for fiscal 2023 and 2022, respectively.

Maturities of Lease Liabilities

(in thousands of dollars)	Operating		Finance
Fiscal Year	Leases		Leases		Total
2024	$	13,586	$	—	$	13,586
2025		13,018		—		13,018
2026		9,657		—		9,657
2027		4,361		—		4,361
2028		3,740		—		3,740
After 2028		6,111		—		6,111
Total minimum lease payments		50,473		—		50,473
Less amount representing interest		(7,493)		—		(7,493)
Present value of lease liabilities	$	42,980	$	—	$	42,980

Lease Term and Discount Rate

	February 3, 2024
Weighted-average remaining lease term
Operating leases	5.0
Weighted-average discount rate
Operating leases	6.5	%

Other Information

(in thousands of dollars)	Fiscal 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	13,475
Operating cash flows from finance leases		—
Financing cash flows from finance leases		—
Lease assets obtained in exchange for new operating lease liabilities	$	20,477

12.