OTHER COMMENTS

6 Months Ended

Aug. 04, 2019

Other Comments [Abstract]

OTHER COMMENTS

OTHER COMMENTS

Wuxi Jinmao Foreign Trade Co., Ltd. (“Wuxi”), one of the Company’s finished goods inventory suppliers, has a wholly owned subsidiary with which the Company entered into a loan agreement in 2016. Under the agreement, Wuxi’s subsidiary borrowed a principal amount of $13.8 million for the development and operation of a fabric mill. Principal payments are due in semi-annual installments beginning March 31, 2018 through September 30, 2026. The outstanding principal balance of the loan bears interest at a rate of (i) 4.50% per annum until the sixth anniversary of the closing date of the loan and (ii) LIBOR plus 4.00% thereafter. The Company received principal payments of $0.2 million and $0.1 million during the twenty-six weeks ended August 4, 2019 and August 5, 2018, respectively. The outstanding balance, including accrued interest, was $13.6 million, $13.8 million and $13.9 million as of August 4, 2019, February 3, 2019, and August 5, 2018, respectively, and was included in other assets in the Company’s Consolidated Balance Sheets.

The Company records warehousing and distribution expenses, which are subject to exchange rate fluctuations, as a component of SG&A expenses in its Consolidated Income Statements. Warehousing and distribution expenses incurred in the thirteen and twenty-six weeks ended August 4, 2019 totaled $82.2 million and $159.3 million, respectively. Warehousing and distribution expenses incurred in the thirteen and twenty-six weeks ended August 5, 2018 totaled $68.6 million and $138.6 million, respectively.