Income Taxes (Tables)

12 Months Ended

Jan. 28, 2023

Income Taxes

Summary of distribution between domestic and foreign earnings (loss) before income taxes

The following table summarizes our distribution between domestic and foreign earnings (loss) before income taxes and the provision (benefit) for income taxes (in thousands):

	Fiscal		Fiscal		Fiscal
	2022		2021		2020
Earnings (loss) before income taxes:
Domestic	$	206,944	$	161,233	$	(129,129)
Foreign		8,781		3,326		3,252
Earnings (loss) before income taxes	$	215,725	$	164,559	$	(125,877)
Income taxes:
Current:
Federal	$	41,776	$	24,998	$	(11,498)
State		8,835		3,780		(1,060)
Foreign		1,191		409		735
		51,802		29,187		(11,823)
Deferred—Domestic		71		4,155		(17,780)
Deferred—Foreign		(1,883)		(104)		(582)
Income taxes	$	49,990	$	33,238	$	(30,185)

Summary of provision (benefit) for income taxes

The following table summarizes our distribution between domestic and foreign earnings (loss) before income taxes and the provision (benefit) for income taxes (in thousands):

	Fiscal		Fiscal		Fiscal
	2022		2021		2020
Earnings (loss) before income taxes:
Domestic	$	206,944	$	161,233	$	(129,129)
Foreign		8,781		3,326		3,252
Earnings (loss) before income taxes	$	215,725	$	164,559	$	(125,877)
Income taxes:
Current:
Federal	$	41,776	$	24,998	$	(11,498)
State		8,835		3,780		(1,060)
Foreign		1,191		409		735
		51,802		29,187		(11,823)
Deferred—Domestic		71		4,155		(17,780)
Deferred—Foreign		(1,883)		(104)		(582)
Income taxes	$	49,990	$	33,238	$	(30,185)

Schedule of reconciliations of the United States federal statutory income tax rates and the entity's effective tax rates

	Fiscal		Fiscal		Fiscal
	2022		2021		2020
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes—net of federal income tax benefit	3.6	%	3.7	%	3.6	%
Impact of foreign operations rate differential	0.1	%	0.1	%	(0.2)	%
Impairment of non-deductible Southern Tide goodwill	—	%	—	%	(3.7)	%
Change in reserve for uncertain tax positions	0.2	%	(1.0)	%	(2.5)	%
Rate benefit from NOL carry-back to pre-U.S. Tax Reform periods due to the CARES Act	—	%	—	%	5.5	%
Impact of valuation allowances related to operating losses	(1.6)	%	(0.8)	%	(0.9)	%
Impact of valuation allowances related to capital losses	—	%	1.2	%	—	%
Impact of capital losses	—	%	(2.9)	%	—	%
Other, net	(0.1)	%	(1.1)	%	1.2	%
Effective tax rate for continuing operations	23.2	%	20.2	%	24.0	%

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities included in our consolidated balance sheets are comprised of the following (in thousands):

	January 28,		January 29,
	2023		2022
Deferred Tax Assets:
Inventories	$	20,561	$	16,947
Accrued compensation and benefits		9,637		9,058
Receivable allowances and reserves		2,580		2,814
Operating lease liabilities		71,871		59,711
Operating loss and other carry-forwards		757		3,675
Other, net		4,901		3,529
Deferred tax assets		110,307		95,734
Deferred Tax Liabilities:
Operating lease assets		(66,145)		(51,909)
Depreciation and amortization		(15,289)		(12,427)
Acquired intangible assets		(26,030)		(26,792)
Deferred tax liabilities		(107,464)		(91,128)
Valuation allowance		(2,448)		(6,050)
Net deferred tax asset (liability)	$	395	$	(1,444)

Schedule of deferred income taxes included in the line items in the entity's consolidated balance sheets

The amounts of deferred income taxes included in our consolidated balance sheets are as follows (in thousands):

	January 28,		January 29,
	2023		2022
Assets:
Deferred tax assets	$	3,376	$	1,467
Liabilities:
Deferred tax liabilities		(2,981)		(2,911)
Net deferred tax asset (liability)	$	395	$	(1,444)

Schedule of reconciliation of changes in gross amount of unrecognized tax benefits

	January 28,		January 29,
	2023		2022
Assets:
Deferred tax assets	$	3,376	$	1,467
Liabilities:
Deferred tax liabilities		(2,981)		(2,911)
Net deferred tax asset (liability)	$	395	$	(1,444)

A reconciliation of the changes in the gross amount of unrecognized tax benefits, which are included in other non-current liabilities, is as follows (in thousands):

	Fiscal 2022		Fiscal 2021		Fiscal 2020
Balance of unrecognized tax benefits at beginning of year	$	3,390	$	5,261	$	1,212
Increase related to prior period tax positions		110		10		303
Decrease related to prior period tax positions		—		—		(1)
Increase related to current period tax positions		646		527		3,960
Decrease related to settlements with taxing authorities		—		(2,305)		—
Decrease related to lapse of statute of limitations		(482)		(103)		(213)
Balance of unrecognized tax benefits at end of year	$	3,664	$	3,390	$	5,261