Leases

3 Months Ended

Apr. 30, 2022

Leases [Abstract]

Leases

Note 5 – Leases

The Company leases retail stores, warehouses, distribution centers, office space and certain equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

Most leases are for a term of one to ten years.  Some leases include one or more options to renew, with renewal terms that can extend the lease term from one to ten years.  Several of the Company’s retail store leases include an option to terminate the lease based on failure to achieve a specified sales volume. The exercise of lease renewal options is generally at the Company’s sole discretion. The exercise of lease termination options is generally by mutual agreement between the Company and the lessor.

Certain of the Company’s lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The Company’s leases do not contain any material residual value guarantees or material restrictive covenants.

The Company’s lease assets and liabilities as of April 30, 2022, April 30, 2021 and January 31, 2022 consist of the following:

Leases	Classification	April 30, 2022		April 30, 2021		January 31, 2022
		(In thousands)
Assets
Operating	Operating lease assets	$	164,607	$	180,715	$	169,595
Liabilities
Current operating	Current operating lease liabilities	$	41,112	$	43,656	$	42,763
Noncurrent operating	Noncurrent operating lease liabilities		139,686		155,218		142,868
Total lease liabilities		$	180,798	$	198,874	$	185,631

The Company recorded lease costs of $14.1 million and $13.6 million during the three months ended April 30, 2022 and 2021, respectively. Lease costs are recorded within selling, general and administrative expenses in the Company’s condensed consolidated statements of operations and comprehensive income. The Company recorded variable lease costs and short-term lease costs of $5.1 million and $1.5 million for the three months ended April 30, 2022 and 2021, respectively.

As of April 30, 2022, the Company’s maturity of operating lease liabilities in the years ending up to January 31, 2027 and thereafter are as follows:

Year Ending January 31,	Amount
	(In thousands)
2023	$	41,025
2024		45,347
2025		38,151
2026		30,712
2027		24,544
After 2027		46,103
Total lease payments	$	225,882
Less: Interest		45,084
Present value of lease liabilities	$	180,798

As of April 30, 2022, there are no material leases that are legally binding but have not yet commenced.

As of April 30, 2022, the weighted average remaining lease term related to operating leases is 5.4 years. The weighted average discount rate related to operating leases is 8.3%.

Cash paid for amounts included in the measurement of operating lease liabilities is $15.0 million and $14.8 million during the three months ended April 30, 2022 and April 30, 2021, respectively. Right-of-use assets obtained in exchange for lease obligations were $8.6 million and $6.5 million during the three months ended April 30, 2022 and April 30, 2021, respectively.