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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Feb. 03, 2024

Estimated Useful Life of Property and Equipment

Depreciation is computed on the straight-line method over the assets’ estimated useful lives as follows:


Furniture and fixtures		Five to ten years
Equipment		Five to ten years
Leasehold improvements		Lesser of useful lives or related lease term
Hardware and software		Three to seven years

Other Comprehensive Income (loss) and Reclassifications from AOCI

Other comprehensive income (loss) includes amounts related to foreign currency and pension plans and is reported in the Consolidated Statements of Comprehensive Income (Loss). Other comprehensive income (loss) and reclassifications from AOCI for fiscal 2023, fiscal 2022 and fiscal 2021 are as follows:


	Fiscal 2023			Fiscal 2022									Fiscal 2021
(in thousands)
	Retirement Plans			Retirement Plans			Foreign Currency			Total			Retirement Plans			Foreign Currency			Total
Balance at beginning of fiscal year	$	(4,928	)	$	(5,466	)	$	(59	)	$	(5,525	)	$	(6,224	)	$	3		$	(6,221	)

Other comprehensive income (loss) before reclassifications, net of taxes		(199	)		568			(7	)		561			799			(62	)		737

Recognition of loss on retirement plan terminations, net of taxes (1)		5,052			—			—			—			—			—			—

Recognition of accumulated foreign currency translation adjustment (2)		—			—			66			66			—			—			—

Amounts reclassified from accumulated other comprehensive income (loss), net of taxes (3)		75			(30	)		—			(30	)		(41	)		—			(41	)

Other comprehensive income (loss) for the period		4,928			538			59			597			758			(62	)		696

Balance at end of fiscal year	$	—		$	(4,928	)	$	—		$	(4,928	)	$	(5,466	)	$	(59	)	$	(5,525	)

(1)

In fiscal 2023, the Company terminated its pension plan and SERP and all obligations were settled through the purchase of nonparticipating annuities. Accordingly, the Company recognized the unrealized loss of its pension plans of $5.7 million, which is reflected in the "Loss from Termination of Retirement Plans" on the Consolidated Statement of Operations. The corresponding tax effect of $0.6 million, was recognized and is reflected as part of the income tax provision.

(2)

In connection with the Company’s closing of its remaining store in Toronto, Canada, in fiscal 2022, the Company recognized the accumulated foreign currency translation adjustment as an expense.

(3)

Includes the amortization through the date of settlement of the unrecognized (gain)/loss on retirement plans, which was charged to selling, general and administrative expense on the Consolidated Statements of Operations for all periods presented. The amortization of the unrecognized loss was $102,000, with a corresponding tax benefit of 27,000 for fiscal 2023. For fiscal 2022

and fiscal 2021, the Company recognized income of $39,000 and $41,000, respectively, as a result of a change in amortization from average remaining future service to average remaining lifetime. The corresponding tax provision for fiscal 2022 was $9,000. There was no related tax effect for fiscal 2021.

Reconciliation of Number of Shares Outstanding for Basic and Diluted Earnings Per Share

The following table provides a reconciliation of the number of shares outstanding for basic and diluted earnings per share:


	FISCAL YEARS ENDED
	February 3, 2024		January 28, 2023		January 29, 2022
(in thousands)
Common stock outstanding:
Basic weighted average common shares outstanding		61,018		62,825		63,401
Common stock equivalents – stock options, deferred stock and RSUs		3,287		4,065		4,630
Diluted weighted average common shares outstanding		64,305		66,890		68,031

Potential Common Stock Equivalents Excluded from Computation of Diluted Earnings Per Share

The following potential common stock equivalents were excluded from the computation of diluted earnings per share in each year because the exercise price of such options was greater than the average market price per share of common stock for the respective periods or because the unearned compensation associated with either stock options, RSUs, or deferred stock had an anti-dilutive effect.


	FISCAL YEARS ENDED
	February 3, 2024		January 28, 2023		January 29, 2022
(in thousands, except exercise prices)
Stock options (time-vested)		85		102		302
RSUs (time-vested)		39		104		—
Range of exercise prices of such options	$4.48 - $6.59		$4.48 - $7.43		$4.19 -$5.50

Valuation Assumptions for Stock Options

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model based on the following assumptions in the table. The fair value of each non-vested share is equal to the closing price of the Company’s stock on the date of grant. The weighted-average fair value of options granted and non-vested shares granted shown below does not include shares granted to directors in lieu of compensation.


Fiscal years ended:	February 3, 2024	January 28, 2023	January 29, 2022
Expected volatility	86.3% - 92.1%	87.9% - 123.7%	97.4% - 104.9%
Risk-free interest rate	3.71%-4.42%	2.52% - 4.41%	0.31% - 0.60%
Expected life (in years)	2.5	2.0 - 3.5	3.0 - 4.0
Dividend rate	-	-	-
Weighted average fair value of options granted	$3.24	$3.58	$0.47
Weighted average fair value of non-vested shares granted	$4.47	$5.28	$0.66