Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 30, 2021

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 2020, fiscal 2019 and fiscal 2018 are as follows:

	Fiscal 2020									Fiscal 2019									Fiscal 2018
(in thousands)
	Pension Plans			Foreign Currency			Total			Pension Plans			Foreign Currency			Total			Pension Plans			Foreign Currency			Total
Balance at beginning of fiscal year	$	(6,478	)	$	47		$	(6,431	)	$	(5,521	)	$	(662	)	$	(6,183	)	$	(5,840	)	$	(403	)	$	(6,243	)

Other comprehensive income (loss) before reclassifications, net of taxes		(428	)		(44	)		(472	)		(1,598	)		(83	)		(1,681	)		(746	)		(264	)		(1,010	)

Recognition of accumulated foreign currency translation adjustment ⁽¹⁾		—			—			—			—			792			792			—			—			—

Amounts reclassified from accumulated other comprehensive income (loss), net of taxes ⁽²⁾		682			—			682			641			—			641			352			—			352

Other comprehensive income (loss) for the period		254			(44	)		210			(957	)		709			(248	)		(394	)		(264	)		(658	)

Remeasurement and reclassification of stranded tax effect ⁽³⁾		—			—			—			—			—			—			713			5			718

Balance at end of fiscal year	$	(6,224	)	$	3		$	(6,221	)	$	(6,478	)	$	47		$	(6,431	)	$	(5,521	)	$	(662	)	$	(6,183	)

(1)

In connection with the Company’s closing of its Rochester Clothing store in London, England and exiting its London operations, the Company recognized the accumulated foreign currency translation adjustment as an expense and it has been included in “Exit costs associated with London operations” on the Consolidated Statement of Operations for fiscal 2019.

(2)

Includes the amortization of the unrecognized (gain)/loss on pension 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, before tax, was $682,000, $641,000 and $352,000 for fiscal 2020, fiscal 2019 and fiscal 2018, respectively. There was no corresponding tax benefit.

(3)	Represents the reclassification to retained earnings of the tax benefit associated with comprehensive income earned, adjusted for the effects of ASU 2018-02, which allowed for the reclassification to retained earnings of stranded tax effect as a results of the 2017 Tax Act.

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
	January 30, 2021		February 1, 2020		February 2, 2019
(in thousands)
Common stock outstanding:
Basic weighted average common shares outstanding		51,317		49,992		49,163
Common stock equivalents – stock options, restricted stock and restricted stock units (RSUs)⁽¹⁾		—		—		—
Diluted weighted average common shares outstanding		51,317		49,992		49,163

(1)

Common stock equivalents, in thousands, of 159 shares, 408 shares and 497 shares for January 30, 2021, February 1, 2020 and February 2, 2019, respectively, were excluded due to the net loss.

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, restricted or deferred stock had an anti-dilutive effect.

	FISCAL YEARS ENDED
	January 30, 2021		February 1, 2020		February 2, 2019
(in thousands, except exercise prices)
Stock options (time-vested)		3,648		755		942
RSUs (time-vested)		812		560		754
Restricted and deferred stock		191		114		75
Range of exercise prices of such options	$0.53 - $7.02		$1.85 - $7.02		$2.25 - $7.02

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 or deferred stock granted to directors in lieu of compensation.

Fiscal years ended:	January 30, 2021	February 1, 2020		February 2, 2019
Expected volatility	82.3% - 87.8%	-		48.9% - 57.1%
Risk-free interest rate	0.22% - 0.27%	-		2.55% -2.63%
Expected life (in years)	3.0 - 4.0	-		3.0 - 4.5
Dividend rate	-	-		-
Weighted average fair value of options granted	$ 0.32	-		$	1.06
Weighted average fair value of non-vested shares granted	-	$	1.73	$	2.13