Income Taxes (Tables)

12 Months Ended

Jan. 28, 2023

Income Tax Disclosure [Abstract]

Components of Net Deferred Tax Assets

The components of the net deferred tax assets as of January 28, 2023 and January 29, 2022 were as follows (in thousands):

	January 28, 2023			January 29, 2022
Deferred tax assets, net:
Net operating loss carryforward	$	21,736		$	36,790
Accrued expenses and other		5,597			5,223
Operating lease liabilities		37,793			40,301
Goodwill and intangibles		(62	)		11
Unrecognized loss on pension and pension expense		1,714			1,883
Inventory reserves		900			1,054
Foreign tax credit carryforward		486			486
Federal wage tax credit carryforward		824			824
State tax credits		147			147
Operating lease right-of-use assets		(32,583	)		(33,103	)
Property and equipment		(2,672	)		(3,597	)
Subtotal	$	33,880		$	50,019
Valuation allowance		(2,425	)		(50,019	)
Net deferred tax assets	$	31,455		$	—

Provision (benefit) for Income Taxes

The provision (benefit) for income taxes consisted of the following:

	FISCAL YEARS ENDED
	January 28, 2023			January 29, 2022		January 30, 2021
(in thousands)
Current:
Federal	$	—		$	—	$	—
State		830			912		99
Foreign		6			5		7
		836			917		106
Deferred:
Federal		(24,794	)		—		—
State		(6,830	)		—		—
Foreign		—			—		—
		(31,624	)		—		—
Total provision (benefit)	$	(30,788	)	$	917	$	106

Reconciliation between Statutory and Effective Income Tax Rates

The following is a reconciliation between the statutory and effective income tax rates in dollars for the provision (benefit) for income tax:

	FISCAL YEARS ENDED
	January 28, 2023			January 29, 2022			January 30, 2021
(in thousands)
Federal income tax at the statutory rate	$	12,250		$	12,102		$	(13,531	)
State taxes, net of federal tax benefit		656			721			78
State deferred taxes, net of federal benefit		1,558			—			—
Section 162(m) limitation		1,451			1,375			197
Permanent items		21			(893	)		245
Change in valuation allowance (1)		(47,594	)		(12,421	)		13,167
Other, net		870			33			(50	)
Total provision (benefit)	$	(30,788	)	$	917		$	106

(1)The change in the valuation allowance includes a non-recurring income tax benefit of $31.6 million in connection with the Company’s substantial release of the valuation allowance in fiscal 2022 related to the deferred tax assets expected to be realized in future periods. The change in valuation allowance excludes the amounts allocable to state income tax, which is presented in state taxes, net of federal tax benefit, and other comprehensive income.

Liability for Unrecognized Tax Benefits

The following table shows the liability for unrecognized tax benefits associated with a prior tax position related to exiting the Company’s direct business in Europe during fiscal 2013. There were no changes to the unrecognized tax benefits in fiscal 2022, fiscal 2021 or fiscal 2020. The amount of unrecognized tax benefits has been presented as a reduction in the reported amounts of the Company’s federal and state net operating losses carryforwards. No penalties or interest have been accrued on this liability because the carryforwards have not yet been utilized. The reversal of this liability would result in a tax benefit being recognized in the period in which the Company determines the liability is no longer necessary.

	FISCAL YEARS ENDED
	January 28, 2023		January 29, 2022		January 30, 2021
(in thousands)
Balance at the beginning of the fiscal year	$	2,000	$	2,000	$	2,000
Changes due to tax positions from current year		—		—		—
Changes due to tax positions from prior years		—		—		—
Changes due to lapsing of statute of limitations		—		—		—
Balance at the end of the fiscal year	$	2,000	$	2,000	$	2,000