0001193125-19-175693.txt : 20190618 0001193125-19-175693.hdr.sgml : 20190618 20190618163158 ACCESSION NUMBER: 0001193125-19-175693 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 62 CONFORMED PERIOD OF REPORT: 20190504 FILED AS OF DATE: 20190618 DATE AS OF CHANGE: 20190618 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STEIN MART INC CENTRAL INDEX KEY: 0000884940 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-FAMILY CLOTHING STORES [5651] IRS NUMBER: 640466198 STATE OF INCORPORATION: FL FISCAL YEAR END: 0201 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-20052 FILM NUMBER: 19903949 BUSINESS ADDRESS: STREET 1: 1200 RIVERPLACE BLVD CITY: JACKSONVILLE STATE: FL ZIP: 32207 BUSINESS PHONE: 9043461500 MAIL ADDRESS: STREET 1: 1200 RIVERPLACE BLVD CITY: JACKSONVILLE STATE: FL ZIP: 32207 10-Q 1 d632507d10q.htm 10-Q 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

 

[X]

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 4, 2019

or

 

[  ]

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number 0-20052

 

LOGO

STEIN MART, INC.

(Exact name of registrant as specified in its charter)

 

Florida

     64-0466198

(State or other jurisdiction of

 

                                                                                      

   (I.R.S. Employer

incorporation or organization)

     Identification Number)

1200 Riverplace Blvd., Jacksonville, Florida

     32207

(Address of principal executive offices)

     (Zip Code)

Registrant’s telephone number, including area code: (904) 346-1500

 

Title of each class  

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock, $0.01 par value   SMRT   The NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes [X] No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer [  ]

   Accelerated filer [  ]  

Non-accelerated filer [  ]

   Smaller reporting company [X]  
   Emerging growth company [  ]  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ] No [X] The number of shares outstanding of the Registrant’s common stock as of June 13, 2019, was 48,062,929.

 

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Table of Contents

Stein Mart, Inc.

Table of Contents

 

       PAGE  

PART I

  FINANCIAL INFORMATION      3  

Item 1.

 

Condensed Consolidated Financial Statements (Unaudited):

  
  Condensed Consolidated Balance Sheets at May 4, 2019, February 2, 2019 and May 5, 2018      3  
  Condensed Consolidated Statements of Operations for the 13 weeks Ended May 4, 2019 and May 5, 2018      4  
  Condensed Consolidated Statements of Comprehensive Income for the 13 weeks Ended May 4, 2019 and May 5, 2018      5  
  Condensed Consolidated Statements of Shareholders’ Equity for the 13 weeks Ended May 4, 2019 and May 5, 2018      6  
  Condensed Consolidated Statements of Cash Flows for the 13 weeks Ended May 4, 2019 and May 5, 2018      7  
 

Notes to Condensed Consolidated Financial Statements (Unaudited)

     8  

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

     18  

Item 4.

 

Controls and Procedures

     25  

PART II

  OTHER INFORMATION   

Item 1.

 

Legal Proceedings

     25  

Item 1A.

 

Risk Factors

     25  

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

     26  

Item 3.

 

Defaults upon Senior Securities

     26  

Item 4.

 

Mine Safety Disclosures

     26  

Item 5.

 

Other Information

     26  

Item 6.

 

Exhibits

     26  

SIGNATURES 

     28  

 

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Table of Contents

PART I – FINANCIAL INFORMATION

 

ITEM 1.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Stein Mart, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except for share and per share data)

 

      May 4, 2019        February 2, 2019        May 5, 2018    

ASSETS

     

Current assets:

     

Cash and cash equivalents

  $ 21,933     $ 9,049     $ 16,165  

Inventories

    274,281       255,884       296,964  

Prepaid expenses and other current assets

    31,838       28,326       35,597  

Total current assets

    328,052       293,259       348,726  

Property and equipment, net of accumulated depreciation and amortization of $255,845, $250,955 and $234,910, respectively

    114,252       119,740       140,184  

Operating lease assets

    374,039       -       -  

Other assets

    24,255       24,108       24,838  

Total assets

  $ 840,598     $ 437,107     $ 513,748  

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

Current liabilities:

     

Accounts payable

  $ 114,495     $ 89,646     $ 93,632  

Current portion of debt

    -       -       159,415  

Current portion of operating lease liabilities

    80,167       -       -  

Accrued expenses and other current liabilities

    84,118       77,650       78,418  

Total current liabilities

    278,780       167,296       331,465  

Long-term debt, net of current portion

    152,999       153,253       49,266  

Deferred rent

    -       39,708       41,535  

Noncurrent operating lease liabilities

    332,079       -       -  

Other liabilities

    31,335       33,897       38,785  

 Total liabilities

    795,193       394,154       461,051  

COMMITMENTS AND CONTINGENCIES

     

Shareholders’ equity:

     

Preferred stock - $.01 par value, 1,000,000 shares authorized; no shares issued or outstanding

    -       -       -  

Common stock - $.01 par value; 100,000,000 shares authorized; 48,065,250, 47,874,286 and 47,910,450 shares issued and outstanding, respectively

    481       479       479  

Additional paid-in capital

    60,797       60,172       56,961  

Retained deficit

    (16,110     (17,951     (4,501

Accumulated other comprehensive income (loss)

    237       253       (242

Total shareholders’ equity

    45,405       42,953       52,697  

Total liabilities and shareholders’ equity

  $ 840,598     $ 437,107     $ 513,748  

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

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Stein Mart, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share data)

 

       13 Weeks Ended          13 Weeks Ended    
     May 4, 2019      May 5, 2018  

Net sales

   $ 314,157       $ 326,605   

Other revenue

     5,225         4,382   

Total revenue

     319,382         330,987   

Cost of merchandise sold

     226,698         230,621   

Selling, general and administrative expenses

     86,136         90,509   

Operating income

     6,548         9,857   

Interest expense, net

     2,526         2,463   

Income before income taxes

     4,022         7,394   

Income tax expense

     53         60   

Net income

   $ 3,969       $ 7,334   

Net earnings per common share:

     

Basic

   $ 0.08       $ 0.16   

Diluted

   $ 0.08       $ 0.16   

Weighted-average shares outstanding:

     

Basic

     47,111         46,610   

Diluted

     47,556         46,659   

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

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Stein Mart, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

(In thousands)

 

       13 Weeks Ended         13 Weeks Ended    
     May 4, 2019     May 5, 2018  

Net income

   $ 3,969     $ 7,334  

Other comprehensive income (loss), net of tax:

    

Amounts reclassified from accumulated other comprehensive income (loss)

     (16     4  

Comprehensive income

   $ 3,953     $ 7,338  

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

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Stein Mart, Inc.

Condensed Consolidated Statements of Shareholders’ Equity

(Unaudited)

(In thousands)

 

                             Accumulated        
                 Additional           Other     Total  
     Common Stock     Paid-in     Retained     Comprehensive     Shareholders’  
     Shares     Amount     Capital     Deficit     Income (Loss)     Equity  

Balance on February 2, 2019

     47,874     $ 479     $     60,172     $ (17,951   $ 253     $ 42,953  

Net income

     -           -           -                 3,969       -           3,969  

Other comprehensive loss, net of tax

     -           -           -           -           (16     (16

Reacquired shares, net

     (87     (1     (102     -           -           (103

Issuance of restricted stock, net

     278       3       (3     -           -           -      

Share-based compensation

     -           -           730       -           -           730  

Cash dividends paid

     -           -           -           (49     -           (49

Cash dividends payable

     -           -           -           54       -           54  

Adjustment for adoption of accounting standard

     -           -           -           (2,133     -           (2,133

Balance on May 4, 2019

     48,065     $ 481     $ 60,797     $ (16,110   $ 237     $ 45,405  
                                                

Balance on February 3, 2018

     47,978     $ 480     $ 56,002     $ (11,843   $ (246   $ 44,393  

Net income

     -           -           -           7,334       -           7,334  

Other comprehensive income, net of tax

     -           -           -           -           4       4  

Reacquired shares

     (45     (1     (36     -           -           (37

Issuance of restricted stock, net

     (23     -           -           -           -           -      

Share-based compensation

     -           -           995       -           -           995  

Cash dividends paid

     -           -           -           (147     -           (147

Cash dividends payable

     -           -           -           155       -           155  

Balance on May 5, 2018

     47,910     $ 479     $ 56,961     $ (4,501   $ (242   $ 52,697  

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

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Stein Mart, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

 

     13 Weeks Ended     13 Weeks Ended  
    

May 4, 2019

 

   

May 5, 2018

 

 

Cash flows from operating activities:

    

Net income

   $ 3,969     $ 7,334  

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

    

Depreciation and amortization

     7,338       8,070  

Share-based compensation

     730       995  

Store closing (benefits) charges

     (8     116  

Impairment of property and other assets

     -       299  

Loss on disposal of property and equipment

     1       99  

Changes in assets and liabilities:

    

Inventories

     (18,397     (26,727

Prepaid expenses and other current assets

     (4,311     (8,977

Other assets

     7,553       (2,311

Accounts payable

     24,951       (25,735

Accrued expenses and other current liabilities

     6,422       217  

Other liabilities

     (13,065     (586

Net cash provided by (used in) operating activities

     15,183       (47,206

Cash flows from investing activities:

    

Net acquisition of property and equipment

     (1,679     (1,664

Proceeds from cancelled corporate owned life insurance policies

     -       2,514  

Net cash (used in) provided by investing activities

     (1,679     850  

Cash flows from financing activities:

    

Proceeds from borrowings

     102,025       428,877  

Repayments of debt

     (102,325     (375,587

Debt issuance costs

     -       (802

Cash dividends paid

     (49     (147

Capital lease payments

     (168     (183

Repurchase of common stock

     (103     (37

Net cash (used in) provided by financing activities

     (620     52,121  

Net increase in cash and cash equivalents

     12,884       5,765  

Cash and cash equivalents at beginning of year

     9,049       10,400  

Cash and cash equivalents at end of period

   $             21,933     $             16,165  

Supplemental disclosures of cash flow information:

    

Income taxes received

   $ (182   $ (228

Interest paid

     2,587       2,096  

Accruals and accounts payable for capital expenditures

     414       379  

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

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Stein Mart, Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. Basis of Presentation

The accompanying Condensed Consolidated Financial Statements (Unaudited) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for annual audited financial statements. In our opinion, all adjustments (consisting primarily of normal and recurring adjustments) considered necessary for a fair presentation have been included. Due to the seasonality of our business, results for any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year. These Condensed Consolidated Financial Statements (Unaudited) should be read in conjunction with the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended February 2, 2019, filed with the Securities and Exchange Commission (“SEC”) on March 28, 2019.

As used herein, the terms “we,” “our,” “us” and “Stein Mart” refer to Stein Mart, Inc. and its wholly-owned subsidiaries.

Recently Adopted Accounting Standards

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases, to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. We adopted this ASU and the related amendments as of February 3, 2019.

At transition, we elected the package of practical expedients, which allowed us to carry forward the historical lease classification, to not reassess prior conclusions related to initial direct costs, and to not reassess whether any expired or existing contracts are or contain leases. We did not elect the use of hindsight to determine the term of our leases at transition. We also elected the practical expedient to not separate non-lease components from the lease components to which they relate and instead to combine them and account for them as a single lease component. We made an accounting policy election not to capitalize leases with an initial term of twelve months or less.

Adoption of the new standard had a significant effect on our Condensed Consolidated Balance Sheets (Unaudited) due to the addition of operating lease assets of $382.5 million and operating lease liabilities of $422.7 million, as of February 3, 2019. We also recognized a cumulative effect adjustment that increased retained deficit by $2.1 million for transition impairments related to previously impaired leased locations. The standard did not have a significant effect on our results of operations or cash flows. Consistent with the optional effective date transition method, the financial information in the Condensed Consolidated Balance Sheets (Unaudited) prior to the adoption of this new lease accounting guidance has not been adjusted and is therefore not comparable to the current period presented.

See Note 8 “Leases” for additional information.

Recent Accounting Standards Not Yet Adopted

In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40). This update provides additional guidance to ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40), which was issued in April 2015. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). This ASU is effective for annual reporting periods beginning on or after December 15, 2019, and interim periods within those annual periods with early adoption permitted in any interim period for which financial statements have not yet been issued. We are in the process of evaluating the effect that this ASU will have on our financial condition, results of operations and cash flows.

2. Revision of Previously Issued Financial Statements

During the quarter ended May 4, 2019, we identified a financial statement misstatement related to previous impairment calculations, which resulted in an overstatement of property and equipment, net, and an understatement of retained deficit of $4.1 million and $3.9 million as of February 2, 2019 and May 5, 2018, respectively. The error also resulted in an understatement of selling, general and administrative expenses of $0.2 million and less than $0.1 million for the year ended February 2, 2019 and 13 weeks ended May 5, 2018, respectively. Based on an analysis of quantitative and qualitative factors, we determined that the error was not material to our prior interim and annual financial statements. We revised the accompanying Condensed Consolidated Balance Sheets (Unaudited) as of February 2, 2019 and May 5, 2018 and the Statement of Operations (Unaudited) for the 13 weeks ended May 5, 2018.

 

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Stein Mart, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

(Unaudited)

 

3. Revenue Recognition

Revenue from sales of our merchandise is recognized at the time of sale net of any returns, discounts and percentage-off coupons. Our Ecommerce operation records revenue as orders are fulfilled and provided to a carrier for delivery. Shipping and handling fees charged to customers are also included in total net sales with corresponding costs recorded as cost of goods sold as they are considered a fulfillment cost. Future merchandise returns are estimated based on historical experience. Sales tax collected from customers is not recognized as revenue and is included in accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets (Unaudited) until paid. Our shoe department and vintage luxury handbag department inventories are each owned by separate single suppliers under supply agreements. Our commissions from the sales in these areas are included in net sales on the Condensed Consolidated Statements of Operations (Unaudited).

We offer gift and merchandise return cards to our customers. At the time gift cards are sold, the issuance is recorded as a liability to customers, and no revenue is recognized. At the time merchandise return cards are issued for returned merchandise, the sale is reversed and a liability to customers is recorded. These card liabilities are reduced and sales revenue is recognized when they are redeemed for merchandise. Card liabilities are included in accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets (Unaudited).

Our gift and merchandise return cards may not ultimately be redeemed either in full or partially. We account for this “breakage” of unused amounts as revenue in proportion to the pattern of rights exercised by the customer. Breakage revenue is recorded within other revenue in the Condensed Consolidated Statements of Operations (Unaudited). During both the 13 weeks ended May 4, 2019 and May 5, 2018, we recognized $0.6 million of breakage revenue on unused gift and merchandise return cards.

Credit Card

We offer co-branded and private label credit cards under the Stein Mart brand. These cards are issued by Synchrony Bank (“Synchrony”). Synchrony extends credit directly to card holders, provides all servicing for the credit card accounts and bears all risk of credit and fraud losses.

We receive royalty revenue from Synchrony based on card usage in our stores and at other retailers for the Stein Mart Mastercard. We also receive revenues for new accounts and gain share based on the profitability of the overall program. Credit card revenue is recorded within other revenue in the Condensed Consolidated Statements of Operations (Unaudited). These revenues are recorded as they are earned based on the occurrence of the various program activities and represent the majority of other revenue.

Card holders are eligible to participate in the credit card rewards program, which provides for reward certificates. We defer a portion of our revenue for loyalty points earned by customers and recognize the revenue as the certificates earned are used to purchase merchandise by our customers. This revenue is recorded within other revenue in the Condensed Consolidated Statements of Operations (Unaudited).

Certificates may not ultimately be redeemed either in full or partially. We account for this “breakage” of unused amounts as revenue in proportion to the pattern of rights exercised by the customer. Breakage revenue is recorded within other revenue in the Condensed Consolidated Statements of Operations (Unaudited). During the 13 weeks ended May 4, 2019 and May 5, 2018, we recognized $1.9 million and $1.4 million, respectively, of breakage revenue on unused credit card reward certificates and points.

 

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Stein Mart, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

(Unaudited)

 

Revenue

The following table sets forth our revenue by type of contract (in thousands):

 

     13 Weeks Ended
May 4, 2019
     13 Weeks Ended
May 5, 2018
 

Store sales (1)

   $                 293,289      $  306,831  

Ecommerce sales (1)

     13,744        12,814  

Licensed department commissions (2)

     7,124        6,960  

Net sales

   $ 314,157      $                 326,605  

Credit card revenue (3)

     2,564        2,268  

Breakage revenue (4)

     2,538        1,995  

Other

     123        119  

Other revenue

     5,225        4,382  

Total revenue

   $ 319,382      $ 330,987  

 

  (1)

Store and Ecommerce sales are net of any returns, discounts and percentage-off coupons.

  (2)

Licensed department commissions are net of any returns.

  (3)

Credit card revenue earned from Synchrony programs.

  (4)

Breakage revenue earned on unused gift and merchandise return cards and unused certificates and loyalty reward points.

 

The following table sets forth the gross up of the sales return reserve (in thousands):

     May 4, 2019     February 2, 2019     May 5, 2018  

Reserve for sales returns

   $ (6,286   $ (3,469   $ (6,133 )

Cost of inventory returns

                     3,372                           1,984                           3,378

 

The following table sets forth the contract liabilities and their relationship to revenue (in thousands):

 

 

     May 4, 2019     February 2, 2019     May 5, 2018  

Deferred revenue contracts

   $ (10,617   $ (11,017   $ (12,115 )

Gift card liability

     (9,631     (12,246     (9,675

Credit card reward liability

     (5,510     (5,583     (4,449

Liability for deferred revenue

   $ (25,758   $ (28,846   $ (26,239 )

Contract liabilities include consideration received for gift card and loyalty related performance obligations that have not been satisfied as of the dates presented above.

 

The following table sets forth a rollforward of the amounts included in contract liabilities for the periods presented (in thousands):

 

 

 

     13 Weeks Ended
May 4, 2019
     13 Weeks Ended
May 5, 2018
 
  

 

 

 

Beginning balance

   $                   28,846      $  29,381   

Current period gift cards sold and loyalty reward points earned

     7,501        7,101   

Net sales from redemptions (1)

     (7,651)        (7,851)   

Breakage and amortization (2)

     (2,938)        (2,392)   
  

 

 

 

Ending balance

   $ 25,758      $                   26,239   
  

 

 

 

 

  (1)

$4.4 million and $4.5 million in net sales from redemptions were included in the beginning balance of contract liabilities for the 13 weeks ended May 4, 2019 and May 5, 2018, respectively.

  (2)

$2.8 million and $2.3 million in breakage and amortization were included in the beginning balance of contract liabilities for the 13 weeks ended May 4, 2019 and May 5, 2018, respectively.

 

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Stein Mart, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

(Unaudited)

 

4. Accrued Expenses and Other Current Liabilities

The following table sets forth the major components of accrued expenses and other current liabilities (in thousands):

 

       May 4, 2019          February 2, 2019              May 5, 2018      

Property taxes

   $ 18,557      $ 18,852      $ 14,280    

Unredeemed gift and merchandise return cards

     9,631        12,246        9,675    

Compensation and employee benefits

     6,691        9,271        8,068    

Accrued vacation

     4,316        4,365        7,632    

Other

     44,923        32,916        38,763    

Accrued expenses and other current liabilities

   $ 84,118      $ 77,650      $ 78,418    

5. Shareholders’ Equity

Dividends

During the 13 weeks ended May 4, 2019 and May 5, 2018, there were no cash dividends declared.

Stock Repurchase Plan

During the 13 weeks ended May 4, 2019 and May 5, 2018, we repurchased 102,543 shares and 45,103 shares, respectively, of our common stock in the open market at a total cost of $0.1 million and less than $0.1 million, respectively. Stock repurchases on the open market, under a Board of Directors authorized plan, were for taxes due on the vesting of employee stock awards. As of May 4, 2019, there are 366,889 shares which can be repurchased pursuant to the Board of Directors’ current authorization.

6. Earnings per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the basic weighted-average number of common shares outstanding for the period. Diluted EPS is calculated by also considering the impact of potential common stock equivalents on both net income and weighted-average number of common shares outstanding. We no longer compute EPS under the two-class method since we do not have any remaining participating securities containing non-forfeitable rights to dividends.

The following table sets forth a reconciliation of basic weighted-average number of common shares to diluted weighted-average number of common shares (in thousands):

 

     13 Weeks Ended
May 4, 2019
       13 Weeks Ended  
May 5, 2018
 

Basic weighted-average shares outstanding

     47,111        46,610  

Incremental shares from share-based compensation plans

     445        49  

Diluted weighted-average shares outstanding

     47,556        46,659  

Diluted weighted-average shares outstanding exclude approximately 2.9 million shares and 3.7 million shares during the 13 weeks ended May 4, 2019 and May 5, 2018, respectively, which are anti-dilutive for the periods presented. These shares are comprised of a mix of stock options, performance awards and restricted stock units. Stock options excluded were those that had exercise prices greater than the average market price of the common shares such that inclusion would have been anti-dilutive. Restricted stock units and performance shares excluded were shares that were anti-dilutive as calculated using the treasury stock method.

 

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Stein Mart, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

(Unaudited)

 

7. Debt

The following table sets forth our debt (in thousands):

 

             May 4, 2019                 February 2, 2019                  May 5, 2018        

Revolving credit facility

     $ 118,800       $ 119,100      $ 146,128  

Term loan

     35,000     35,000      50,000  

Promissory note

     -       -        13,287  

Total debt

     153,800     154,100      209,415 

Current portion

     -       -        (159,415)  

Debt issuance costs

     (801     (847)        (734)  

Long-term debt

     $ 152,999     $ 153,253      $ 49,266 

Revolving Credit Facility and Equipment Term Loan

On February 3, 2015, we entered into a $250.0 million senior secured revolving credit facility pursuant to a second amended and restated credit agreement (the “Credit Agreement”) with Wells Fargo Bank (“Wells Fargo”), with an original maturity of February 2020 (the “Revolving Credit Facility”) and a secured $25.0 million master loan agreement with Wells Fargo Equipment Finance, Inc. (the “Equipment Term Loan”) with an original maturity of February 2018. Borrowings under the Revolving Credit Facility were initially used for a special dividend but are subsequently being used for working capital, capital expenditures and other general corporate purposes. During 2015, debt issuance costs of $0.4 million were associated with the Revolving Credit Facility and the Equipment Term Loan. Debt issuance costs associated with the Credit Agreement are being amortized over its term. We repaid the Equipment Term Loan in full on January 22, 2018, at which time the associated debt issuance costs were fully amortized.

On February 19, 2018, we entered into Amendment No. 1 (the “Credit Agreement Amendment”) to the Credit Agreement with Wells Fargo. The Credit Agreement Amendment provided for, among other things, an Accommodation Period (as defined in the Credit Agreement Amendment) during which we were not required to meet the Fixed Charge Coverage Ratio (as defined in the Credit Agreement). This change permitted us to borrow the full amount of the then applicable borrowing base until we delivered our financial statements for the Measurement Period (as defined in the Credit Agreement) ended February 28, 2018. Pursuant to the Credit Agreement Amendment, a Cash Dominion Event (as defined in the Credit Agreement Amendment) occurred as of the effective date of the Credit Agreement Amendment and at all times thereafter. Because of the Cash Dominion Event, all of our cash receipts were swept daily to repay outstanding borrowings under the Credit Agreement and the amount outstanding under the Credit Agreement was classified as a short-term obligation. As noted below, the Third Credit Agreement Amendment removed the Cash Dominion Event effective September 18, 2018.

On March 14, 2018, we entered into Amendment No. 2 (the “Second Credit Agreement Amendment”) to the Credit Agreement with Wells Fargo. The Second Credit Agreement Amendment provided for, among other things, the following: (1) the $25.0 million Tranche A-1 Revolving Loans (as defined in the Second Credit Agreement Amendment) were repaid in full with the proceeds of the Term Loan (as defined below); (2) the entry into the Intercreditor Agreement (as defined below); and (3) certain other modifications and updates to coordinate the Revolving Credit Facility with the Term Loan.

On September 18, 2018, we entered into Amendment No. 3 (the “Third Credit Agreement Amendment”) to the Credit Agreement with Wells Fargo. The Third Credit Agreement Amendment provided for, among other things, the following: (1) the increase of Aggregate Tranche A Revolving Loan Commitments (as defined in the Second Credit Agreement Amendment) from $225.0 million to $240.0 million; (2) an extension of the maturity date of the Revolving Credit Facility to the earlier of (a) the maturity date of the Term Loan Agreement (as defined below) or (b) September 18, 2023; and (3) the elimination of Cash Dominion Event status and a change in Cash Dominion to be triggered only in the event of (a) the occurrence and continuance of any Event of Default or (b) Excess Availability of less than (A) 10.0% of the loan cap at any time or (B) 12.5% of the loan cap for three consecutive business days. During 2018, debt issuance costs of less than $0.1 million were associated with the Third Credit Agreement Amendment and are being amortized over its term. Debt issuance costs of $0.1 million remaining under the initial Credit Agreement will also be amortized over the new term of the Third Credit Agreement Amendment. The elimination of cash dominion status changed the debt classification from a short-term to long-term obligation.

 

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Stein Mart, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

(Unaudited)

 

On February 26, 2019, we entered into Amendment No. 4 (the “Fourth Credit Agreement Amendment”) to the Credit Agreement with Wells Fargo. The Fourth Credit Agreement Amendment provided for, among other things, a modification to the definition of “Capital Expenditures” and “Permitted Indebtedness” as defined in the Fourth Credit Agreement Amendment.

The total amount available for borrowings under the Credit Agreement is the lesser of $240.0 million or 100 percent of eligible credit card receivables and the net recovery percentage of eligible inventories less reserves. On May 4, 2019, in addition to outstanding borrowings under the Credit Agreement, we had $7.9 million of outstanding letters of credit and our Excess Availability (as defined in the Credit Agreement) was $102.0 million.

The Credit Agreement contains customary representations and warranties, affirmative and negative covenants (including the requirement of a 1.0 to 1.0 consolidated Fixed Charge Coverage Ratio upon the occurrence and during the continuance of any Covenant Compliance Event, as defined in the Credit Agreement), and events of default for facilities of this type and is cross-collateralized and cross-defaulted. Collateral for the Revolving Credit Facility consists of substantially all of our personal property. Wells Fargo has a first lien on all collateral other than equipment.

Borrowings under the Credit Agreement are either base rate loans or London Interbank Offered Rate (“LIBOR”) loans. LIBOR loans bear interest equal to the adjusted LIBOR plus the applicable margin (125 to 175 basis points) depending on the quarterly average excess availability. Base Rate Loans bear interest equal to the highest of (a) the Federal Funds Rate plus 0.50 percent, (b) the adjusted LIBOR plus 1.00 percent, or (c) the Wells Fargo “prime rate,” plus the Applicable Margin (25 to 75 basis points).

The weighted average interest rate for the amount outstanding under the Credit Agreement was 4.12 percent as of May 4, 2019.

Term Loan

On March 14, 2018, we entered into a Term Loan Credit Agreement with Gordon Brothers Finance Company, as administrative agent (in such capacity, the “Term Loan Agent”), and Gordon Brothers Finance Company, LLC, as lender (the “Term Loan Agreement”). The Term Loan Agreement provided for a term loan in the amount of $50.0 million (the “Term Loan”). Debt issuance costs associated with the Term Loan were capitalized in the amount of $0.9 million and will be amortized over the term of the Term Loan. The net proceeds of $49.1 million from the Term Loan were used to permanently pay off the $25.0 million Tranche A-1 Revolving Loan (as defined in the Credit Agreement) and to pay down the Revolving Credit Facility. After utilizing proceeds from the Term Loan for repayment of amounts outstanding under the existing Tranche A-1 Revolving Loans, the Term Loan resulted in an increase in our Excess Availability of approximately $25.0 million under the Credit Agreement.

The Term Loan originally matured on the earlier of (1) the termination date specified in our Credit Agreement, as such date may be extended with the consent of the Term Loan Agent or in accordance with the Intercreditor Agreement (defined below), and (2) March 14, 2020.

On September 18, 2018, we entered into Amendment No. 2 (the “Second Term Loan Amendment”) to the Term Loan with Gordon Brothers Finance Company. The Second Term Loan Amendment provided for, among other things, the following: (1) the reduction of the maximum amount of the Term Loan to $35.0 million; (2) an extension of the maturity date of the Term Loan Agreement to the earlier of (a) the termination date specified in the Revolving Credit Facility (as defined in the Third Credit Agreement Amendment), and (b) September 18, 2023; (3) the reduction of the non-default interest rate applicable to the Term Loan under the Term Loan Agreement to a fluctuating rate of interest equal to three-month LIBOR (with a floor of 1.5%) plus 8.25% per annum; and (4) the elimination of Cash Dominion Event status and a change in Cash Dominion to be triggered only in the event of (a) the occurrence and continuance of any Event of Default or (b) Excess Availability of less than (A) 10.0% of the Revolving Loan Cap at any time or (B) 12.5% of the Revolving Loan Cap for three consecutive Business Days. During 2018, debt issuance costs of approximately $0.3 million were associated with the Term Loan and are being amortized over its term. The elimination of cash dominion status changed the debt classification from a short-term to long-term obligation.

 

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Stein Mart, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

(Unaudited)

 

On February 26, 2019, we entered into Amendment No. 3 (the “Third Term Loan Amendment”) to the Term Loan Agreement. The Third Term Loan Amendment provided for, among other things, a modification to the definition of “Capital Expenditures” and “Permitted Indebtedness” as defined in the Third Term Loan Amendment.

The Term Loan Agreement contains customary representations and warranties, affirmative and negative covenants including the retention of the existing minimum 1.0 to 1.0 consolidated fixed charge coverage ratio under the Credit Agreement, which limits borrowing availability if not met during periods where Revolving Excess Availability (as defined in the Term Loan Agreement) is less than the greater of $20.0 million or 10.0 percent of Combined Loan Cap (as defined in the Term Loan Agreement) for four consecutive business days, and events of default for a facility of this type. The Term Loan is secured by a second lien security interest (subordinate only to the liens securing the Credit Agreement) on all assets securing the Credit Agreement (which consist of substantially all of our personal property), except furniture, fixtures and equipment and intellectual property, upon which the Term Loan lenders have a first lien security interest. If at any time prior to the first anniversary date of the Term Loan, the Revolving Excess Availability is less than $20.0 million, if requested by the Term Loan Agent, the Term Loan will also be secured by a first lien on leasehold interests in real property with an aggregate value of not less than $10.0 million, and the Credit Agreement will be secured by a second lien on such leasehold interests.

The Term Loan is subject to certain mandatory prepayments if an Event of Default (as defined in the Term Loan Agreement) exists. If no such Event of Default exists, proceeds of the Term Loan priority collateral are to be applied to amounts outstanding under the Credit Agreement.

The Term Loan Agent and Wells Fargo have entered into an Intercreditor Agreement dated as of March 14, 2018 (the “Intercreditor Agreement”), acknowledged by us under the Term Loan and the Credit Agreement. The Intercreditor Agreement was also amended on September 18, 2018 to incorporate the amendment to the Revolving Credit Facility and the Term Loan Agreement.

The weighted average interest rate for the amount outstanding under the Term Loan was 10.84 percent as of May 4, 2019.

Promissory Note

We believe we can borrow, on a short-term basis and subject to the formal agreement of the lender, amounts up to the cash surrender value of the life insurance policies related to our executive deferred compensation plans to provide additional liquidity if needed. At May 4, 2019, the cash surrender value of our life insurance policies was $15.2 million.

On February 2, 2018, we executed a promissory note under which we borrowed approximately $13.7 million (the “Promissory Note”) from SunTrust Bank (the “Trustee”) in its capacity as the trustee under a trust agreement (the “Trust Agreement”) dated September 1, 1999. The trust established by the Trust Agreement (the “Trust”) holds certain life insurance policies related to our executive deferred compensation plans. The Trustee obtained loans from the insurance policies held in the Trust in an amount not less than the amount of the Promissory Note. The Promissory Note was a short-term obligation and the proceeds were used to pay down borrowings under the existing Credit Agreement which provided additional availability under that agreement.

The Promissory Note had a fixed interest rate of 3.58 percent per annum and an original maturity date of April 1, 2018. On March 7, 2018, we executed an amendment to the Promissory Note under which the Trustee extended the maturity date of the note from April 1, 2018, to July 1, 2018 (the “Maturity Date”). The amendment did not alter the short-term nature of the Promissory Note. The Promissory Note could be prepaid in whole or in part at any time. All unpaid principal and accrued interest on the Promissory Note would have become due and payable on the Maturity Date. The Trustee could offset payments due under the Promissory Note against amounts we would otherwise be entitled to withdraw from the Trust under the terms of the Trust Agreement. On June 29, 2018, we repaid the outstanding balance of the second promissory note.

On July 31, 2018, we executed a second promissory note from SunTrust Bank for $13.0 million, which carried a fixed interest rate of 3.58 percent per annum and an original maturity date of September 10, 2018. This note included the same terms as the Promissory Note executed on February 2, 2018. On September 10, 2018, we repaid the outstanding balance of the Promissory Note.

 

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Stein Mart, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

(Unaudited)

 

The following table sets forth the aggregate maturities of our long-term debt at May 4, 2019, for the following fiscal years (in thousands):

 

2020

    $ -  

2021

     -  

2022

     -  

2023

     153,800  

2024

     -  

Thereafter

     -  
  

 

 

 

Total

    $           153,800  
  

 

 

 

8. Leases

We lease all our retail store locations, support facilities and certain equipment under operating leases. Our store leases have varying terms and are generally for 10 years with options to extend the lease term for two or more 5-year periods. Annual store rent is generally comprised of a fixed minimum amount plus an insignificant contingent amount based on a percentage of sales in excess of specified levels. Most store leases also require additional payments covering real estate taxes, common area costs and insurance. Certain lease agreements contain rent holidays, and/or rent escalation clauses. Except for contingent rent, we recognize rent expense on a straight-line basis over the lease term. Contingent rent, determined based on a percentage of sales in excess of specified levels, is recognized as rent expense when achievement of the specified sales that triggers the contingent rent is probable. Construction allowances and other such lease incentives are recorded on the Condensed Consolidated Balance Sheets (Unaudited) and are amortized on a straight-line basis as a reduction of rent expense. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement or modification date in determining the present value of lease payments.

In addition to the operating lease assets presented on the Condensed Consolidated Balance Sheets (Unaudited), assets under finance leases of $2.0 million are included in property and equipment, net on the Condensed Consolidated Balance Sheets (Unaudited) as of May 4, 2019. The remaining finance lease obligation is split between accrued expenses and other current liabilities for the short-term portion and other liabilities for the long-term portion on the Condensed Consolidated Balance Sheets (Unaudited).

The following table summarizes our classification of lease cost (in thousands):

 

         13 Weeks Ended
                    Statement of Operations Location    May 4, 2019

Operating lease cost (1)

 

Selling, general and administrative expenses

     $ 23,527   

Finance lease cost:

          

 Amortization of finance lease assets

 

Selling, general and administrative expenses

     152   

 Interest on lease liabilities

 

Interest expense, net

     16   

Variable lease cost

 

Selling, general and administrative expenses

     9,930   
    

 

 

 

Net lease cost

       $                 33,625   
    

 

 

 

 

  (1)

Includes lease costs for short-term leases, which are immaterial.

 

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Stein Mart, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

(Unaudited)

 

As of May 4, 2019, the following table summarizes the maturity of the company’s lease liabilities (in thousands):

 

     Operating     Finance        
     Leases     Leases     Total  
  

 

 

 

Remainder of 2019

     $ 75,170     $ 553     $ 75,723    

2020

     94,868       574       95,442    

2021

     84,084       1       84,085    

2022

     68,574       -            68,574    

2023

     53,515       -            53,515    

After 2023

     105,493       -            105,493    
  

 

 

 

Total lease payments

     481,704       1,128       482,832    

Less: Interest

     (69,458     (50     (69,508)   
  

 

 

 

Present value of lease liabilities

     $         412,246     $       1,078     $          413,324    
  

 

 

 

The following table summarizes our lease term and discount rate:

 

     13 Weeks Ended  
                             May  4, 2019                          

Weighted-average remainder term (years):

  

  Operating leases

    

                      5.8     years

 

  Finance leases

    

                      1.9     years

 

Weighted-average discount rate:

  

  Operating leases

    

                      5.4     %

 

  Finance leases

    

                      5.7     %

 

The following table summarizes the other information related to our lease liabilities (in thousands):

 

     13 Weeks Ended  
                 May 4, 2019               

Cash paid for amounts included in the measurement of lease liabilities:

  

  Operating cash flows from operating leases

     $             25,218    

  Operating cash flows from finance leases

     16    

  Financing cash flows from finance leases

     168    

As of February 2, 2019, in accordance with ASC 840, Leases, the aggregate minimum non-cancelable lease payments under operating leases were as follows (in thousands):

 

    Operating     Finance  
    Leases     Leases  
 

 

 

 

2019

    $ 101,139        $ 738    

2020

    93,190         574    

2021

    82,324         1    

2022

    66,820         -         

2023

    50,697         -         

Thereafter

    102,550         -         
 

 

 

 

Total minimum lease payments

    $     496,720         1,313    
 

 

 

   

Amount representing interest

      (67)   
   

 

 

 

Present value of minimum lease payments

      1,246    

Less: current portion

      (685)   
   

 

 

 

Long-term capital lease obligations

     $         561    
   

 

 

 

 

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Stein Mart, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

(Unaudited)

 

9. Commitments and Contingencies

We are involved in various routine legal proceedings incidental to the conduct of our business. While some of these matters could be material to our results of operations or cash flows for any period if an unfavorable outcome results, we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our overall financial condition. During the 13 weeks ended May 4, 2019 and May 5, 2018, we did not accrue for any actual or anticipated loss contingencies.

10. Income Taxes

The provision for income taxes is based on a current estimate of the annual effective tax rate adjusted to reflect the impact of discrete items. Our effective income tax rate may fluctuate from quarter to quarter as a result of a variety of factors, including changes in our assessment of certain tax contingencies, valuation allowances, changes in tax law, outcomes of administrative audits, the impact of discrete items, and the mix of earnings. Our income tax expense for the 13 weeks ended May 4, 2019, reflects our estimated minimal taxable income for the year. The effective tax rate will be close to zero percent for all of 2019.

 

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

As used herein, the terms “we,” “our,” “us” and “Stein Mart” refer to Stein Mart, Inc. and its wholly-owned subsidiaries.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to certain risks, uncertainties or assumptions and may be affected by certain factors including, but not limited to, the matters discussed in “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended February 2, 2019, filed with the Securities and Exchange Commission (“SEC”) on March 28, 2019. Wherever used, the words “plan,” “expect,” “anticipate,” “believe,” “estimate” and similar expressions identify forward-looking statements. Should one or more of these risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements may vary materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on beliefs and assumptions of our management and on information currently available to such management. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise our forward-looking statements in light of new information or future events. Undue reliance should not be placed on such forward-looking statements, which are based on current expectations. Forward-looking statements are not guarantees of performance.

The following discussion and analysis should be read in conjunction with the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended February 2, 2019, filed with the SEC on March 28, 2019.

Overview

We are a national specialty off-price retailer offering designer and name-brand fashion apparel, home décor, accessories and shoes at everyday discount prices. We currently operate 283 stores across 30 states.

Financial Overview for the 13 weeks Ended May 4, 2019

 

Net sales were $314.2 million for the 13 weeks ended May 4, 2019, compared to $326.6 million for the 13 weeks ended May 5, 2018.

 

Comparable sales for the 13 weeks ended May 4, 2019, decreased 1.7 percent compared to the 13 weeks ended May 5, 2018.

 

Net income for the 13 weeks ended May 4, 2019, was $4.0 million, or $0.08 per diluted share, compared to net income of $7.3 million, or $0.16 per diluted share, during the 13 weeks ended May 5, 2018.

 

We had $153.8 million, $154.1 million and $209.4 million of direct borrowings from our credit facilities as of May 4, 2019, February 2, 2019, and May 5, 2018, respectively.

Stores

The following table sets forth the stores activity for the 13 weeks ended May 4, 2019 and May 5, 2018:

 

    13 Weeks Ended
May 4, 2019
    13 Weeks Ended 
May 5, 2018 
 
 

 

 

 

Stores at beginning of period

    287       293 

Stores opened during the period

    -       -    

Stores closed during the period

    (4     (4)   
 

 

 

 

Stores at the end of period

    283       289 
 

 

 

 

Inventories

Inventory levels were $274.3 million as of May 4, 2019, compared to $255.9 million as of February 2, 2019 and $297.0 million as of May 5, 2018. Average inventories per store as of May 4, 2019, decreased 4.9 percent from May 5, 2018. Total inventories decreased due to fewer stores at the end of the first quarter of 2019 versus 2018 and a planned decrease in Ecommerce inventories.

 

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Table of Contents

Results of Operations

The following table sets forth each line item of our Condensed Consolidated Statements of Operations (Unaudited) expressed as a percentage of net sales (1):

 

       13 Weeks Ended  
May 4, 2019
      13 Weeks Ended  
May 5, 2018
 
  

 

 

 

Net sales

     100.0     100.0% 

Other revenue

     1.7     1.3% 

Total revenue

     101.7     101.3% 
  

 

 

 

Cost of merchandise sold

     72.2     70.6% 

Selling, general and administrative expenses

     27.4     27.7% 
  

 

 

 

Operating income

     2.1     3.0% 

Interest expense, net

     0.8     0.8% 
  

 

 

 

Income before income taxes

     1.3     2.3% 

Income tax expense

     0.0     0.0% 
  

 

 

 

Net income

     1.3     2.2% 
  

 

 

 

 

  (1)

Table may not foot due to rounding.

Important Information Regarding Non-GAAP Financial Measures

We report our financial results in accordance with accounting principles generally accepted in the United States of America (“GAAP”). However, we believe that certain non-GAAP financial measures provide users of our financial information with additional useful information in evaluating operating performance. Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, financial results prepared in accordance with GAAP. Items excluded from or included in non-GAAP financial measures may be significant and should be considered in assessing our financial condition and performance. The methods we used to calculate these non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, the non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies.

Calculations of our comparable sales including sales from licensed departments are non-GAAP financial measures. We believe that providing calculations of changes in comparable sales, both including and excluding sales from licensed departments, assists in evaluating our ability to generate sales growth, whether through owned businesses or departments licensed to third parties. The following table sets forth these calculations.

 

   

        13 Weeks Ended        

May 4, 2019

    

      13 Weeks Ended      

May 5, 2018

 
 

 

 

 

Decrease in comparable sales on an owned basis (1)

    (2.5) %            (1.8) %      

Impact of growth in comparable sales of departments licensed to third parties (2)

    0.8  %            1.1  %    
 

 

 

 

Decrease in comparable sales on an owned plus licensed basis

    (1.7) %            (0.7) %      
 

 

 

 

 

  (1)

Represents the period-to-period percentage change in net sales from stores open throughout the period presented and the same period in the prior year and all online sales of steinmart.com, excluding commissions from departments licensed to third parties.

  (2)

Represents the impact of including the full sales amounts for departments licensed to third parties throughout the period presented and the same period in the prior year on the calculation of comparable sales. We license our shoe and vintage handbag departments to third parties and receive a commission from these third parties based on a percentage of their sales. In our financial statements prepared in conformity with GAAP, we include commissions (rather than sales of the departments licensed to third parties) in our net sales. We do not include the commission amounts from licensed department sales in our comparable sales calculation.

 

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13 Weeks Ended May 4, 2019, Compared to the 13 Weeks Ended May 5, 2018 (tables presented in thousands):

Net Sales

 

      13 Weeks Ended  
May 4, 2019
      13 Weeks Ended  
May 5, 2018
    Decrease  
 

 

 

 

Net sales

     $ 314,157     $ 326,605     $   (12,448)  

Sales percent change:

     

Total net sales

        (3.8)%  

Comparable store sales on an owned plus licensed basis

        (1.7)%  

The 3.8 percent decrease in net sales reflects lower comparable store sales and fewer stores for the 13 weeks ended May 4, 2019, compared to the 13 weeks ended May 5, 2018. The 1.7 percent decrease in comparable stores sales on an owned plus licensed basis for the 13 weeks ended May 4, 2019, was primarily driven by a decrease in the number of transactions driven by lower store traffic. Comparable store sales reflect stores open throughout the period and prior fiscal year and include Ecommerce. Ecommerce sales were approximately 5.3 percent of net sales. Ecommerce sales increased 13.6 percent, including online orders shipped from our stores, and positively affected our total comparable store sales by 40 basis points for the 13 weeks ended May 4, 2019.

Other Revenue

 

      13 Weeks Ended  
May 4, 2019
      13 Weeks Ended  
May 5, 2018
     Increase   
 

 

 

 

Other revenue

     $     5,225     $     4,382     $         843   

Percentage of net sales

    1.7%       1.3%       0.4%  

The increase in other revenue is the result of higher penetration from our growing credit card program, which has increased royalty and bounty income.

Gross Profit

Gross profit is determined as follows:

 

      13 Weeks Ended  
May 4, 2019
      13 Weeks Ended  
May 5, 2018
      Decrease    
 

 

 

 

Net sales

    $ 314,157     $ 326,605     $   (12,448)  

Cost of merchandise sold

    226,698       230,621       (3,923)  
 

 

 

 

Gross profit

    $ 87,459     $ 95,984     $ (8,525)  

Percentage of net sales

    27.8%       29.4%       (1.6)%  

The decrease in gross profit rate for the 13 weeks ended May 4, 2019 was primarily driven by a planned reduction from accelerated markdown cadence, the impact of the shift of the 12-hour sales event from the second to the first quarter of 2019 and slightly higher markdowns to clear fall merchandise.

Selling, General and Administrative Expenses (“SG&A”)

 

      13 Weeks Ended  
May 4, 2019
      13 Weeks Ended  
May 5, 2018
     Decrease   
 

 

 

 

Selling, general and administrative expenses

     $   86,136     $   90,509       $    (4,373)  

Percentage of net sales

    27.4%       27.7%       (0.3)%   

The SG&A decrease for the 13 weeks ended May 4, 2019 was primarily the result of lower store-related expenses including the impact of closed stores.

 

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Interest Expense, Net

 

       13 Weeks Ended  
May 4, 2019
       13 Weeks Ended  
May 5, 2018
      Increase   
  

 

 

 

Interest expense, net

      $ 2,526      $ 2,463      $ 63  

Percentage of net sales

     0.8%        0.8%        0.0%  

Interest expense is flat for the 13 weeks ended May 4, 2019, compared to the 13 weeks ended May 5, 2018. While debt is lower during the 13 weeks ended May 4, 2019, interest expense is flat to last year because of a higher blended interest rate on debt this year.

Income Taxes

 

       13 Weeks Ended  
May 4, 2019
       13 Weeks Ended  
May 5, 2018
      Decrease   
  

 

 

 

Income tax expense

      $ 53      $   60       $ (7)   

Effective tax rate

     1.3%        0.8%        (0.5)%  

The small amount of income tax for the 13 weeks ended May 4, 2019 reflects our estimated minimal taxable income for the year. The effective tax rate will be close to zero percent for all of 2019.

Liquidity and Capital Resources

Capital requirements and working capital needs are funded through a combination of internally generated funds, available cash, credit terms from vendors, our $240.0 million senior secured revolving credit facility pursuant to a second amended and restated credit agreement with Wells Fargo Bank and our $35.0 million Term Loan (as discussed below).

Revolving Credit Facility and Equipment Term Loan

On February 3, 2015, we entered into a $250.0 million senior secured revolving credit facility pursuant to a second amended and restated credit agreement (the “Credit Agreement”) with Wells Fargo Bank (“Wells Fargo”) with an original maturity of February 2020 (the “Revolving Credit Facility”) and a secured $25.0 million master loan agreement with Wells Fargo Equipment Finance, Inc. (the “Equipment Term Loan”) with an original maturity of February 2018. Borrowings under the Revolving Credit Facility were initially used for a special dividend but are subsequently being used for working capital, capital expenditures and other general corporate purposes. During 2015, debt issuance costs of $0.4 million were associated with the Revolving Credit Facility and the Equipment Term Loan. Debt issuance costs associated with the Credit Agreement are being amortized over its term. We repaid the Equipment Term Loan in full on January 22, 2018, at which time the associated debt issuance costs were fully amortized.

On February 19, 2018, we entered into Amendment No. 1 (the “Credit Agreement Amendment”) to the Credit Agreement with Wells Fargo. The Credit Agreement Amendment provided for, among other things, an Accommodation Period (as defined in the Credit Agreement Amendment) during which we were not required to meet the Fixed Charge Coverage Ratio (as defined in the Credit Agreement). This change permitted us to borrow the full amount of the then applicable borrowing base until we delivered our financial statements for the Measurement Period (as defined in the Credit Agreement) ended February 28, 2018. Pursuant to the Credit Agreement Amendment, a Cash Dominion Event (as defined in the Credit Agreement Amendment) occurred as of the effective date of the Credit Agreement Amendment and at all times thereafter. Because of the Cash Dominion Event, all of our cash receipts were swept daily to repay outstanding borrowings under the Credit Agreement and the amount outstanding under the Credit Agreement was classified as a short-term obligation. As noted below, the Third Credit Agreement Amendment removed the Cash Dominion Event effective September 18, 2018.

On March 14, 2018, we entered into Amendment No. 2 (the “Second Credit Agreement Amendment”) to the Credit Agreement with Wells Fargo. The Second Credit Agreement Amendment provided for, among other things, the following: (1) the $25.0 million Tranche A-1 Revolving Loans (as defined in the Second Credit Agreement Amendment) were repaid in full with the proceeds of the Term Loan (as defined below); (2) the entry into the Intercreditor Agreement (as defined below); and (3) certain other modifications and updates to coordinate the Revolving Credit Facility with the Term Loan.

On September 18, 2018, we entered into Amendment No. 3 (the “Third Credit Agreement Amendment”) to the Credit Agreement with Wells Fargo. The Third Credit Agreement Amendment provided for, among other things, the following:

 

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(1) the increase of Aggregate Tranche A Revolving Loan Commitments (as defined in the Second Credit Agreement Amendment) from $225.0 million to $240.0 million; (2) an extension of the maturity date of the Revolving Credit Facility to the earlier of (a) the maturity date of the Term Loan Agreement (as defined below) or (b) September 18, 2023; and (3) the elimination of Cash Dominion Event status and a change in Cash Dominion to be triggered only in the event of (a) the occurrence and continuance of any Event of Default or (b) Excess Availability of less than (A) 10.0% of the loan cap at any time or (B) 12.5% of the loan cap for three consecutive business days. During 2018, debt issuance costs of less than $0.1 million were associated with the Third Credit Agreement Amendment and are being amortized over its respective term. Debt issuance costs of $0.1 million remaining under the initial Credit Agreement will also be amortized over the new term of the Third Credit Agreement Amendment. The elimination of cash dominion status changed the debt classification from a short-term to long-term obligation.

On February 26, 2019, we entered into Amendment No. 4 (the “Fourth Credit Agreement Amendment”) to the Credit Agreement with Wells Fargo. The Fourth Credit Agreement Amendment provided for, among other things, a modification to the definition of “Capital Expenditures” and “Permitted Indebtedness” as defined in the Fourth Credit Agreement Amendment.

The Credit Agreement contains customary representations and warranties, affirmative and negative covenants (including the requirement of a 1.0 to 1.0 consolidated Fixed Charge Coverage Ratio upon the occurrence and during the continuance of any Covenant Compliance Event, as defined in the Credit Agreement), and events of default for facilities of this type and is cross-collateralized and cross-defaulted. Collateral for the Revolving Credit Facility consists of substantially all of our personal property. Wells Fargo has a first lien on all collateral other than equipment.

Borrowings under the Credit Agreement are either base rate loans or London Interbank Offered Rate (“LIBOR”) loans. LIBOR loans bear interest equal to the adjusted LIBOR plus the applicable margin (125 to 175 basis points) depending on the quarterly average excess availability. Base Rate Loans bear interest equal to the highest of (a) the Federal Funds Rate plus 0.50 percent, (b) the adjusted LIBOR plus 1.00 percent, or (c) the Wells Fargo “prime rate,” plus the Applicable Margin (25 to 75 basis points).

The weighted average interest rate for the amount outstanding under the Credit Agreement was 4.12 percent as of May 4, 2019.

Term Loan

On March 14, 2018, we entered into a Term Loan Credit Agreement with Gordon Brothers Finance Company, as administrative agent (in such capacity, the “Term Loan Agent”), and Gordon Brothers Finance Company, LLC, as lender (the “Term Loan Agreement”). The Term Loan Agreement provided for a term loan in the amount of $50.0 million (the “Term Loan”). Debt issuance costs associated with the Term Loan were capitalized in the amount of $0.9 million and will be amortized over the term of the Term Loan. The net proceeds of $49.1 million from the Term Loan were used to permanently pay off the $25.0 million Tranche A-1 Revolving Loan (as defined in the Credit Agreement) and to pay down the Revolving Credit Facility. After utilizing proceeds from the Term Loan for repayment of amounts outstanding under the existing Tranche A-1 Revolving Loans, the Term Loan resulted in an increase in our Excess Availability of approximately $25.0 million under the Credit Agreement.

The Term Loan originally matured on the earlier of (1) the termination date specified in our Credit Agreement, as such date may be extended with the consent of the Term Loan Agent or in accordance with the Intercreditor Agreement (defined below), and (2) March 14, 2020.

On September 18, 2018, we entered into Amendment No. 2 (the “Second Term Loan Amendment”) to the Term Loan with Gordon Brothers Finance Company. The Second Term Loan Amendment provided for, among other things, the following: (1) the reduction of the maximum amount of the Term Loan to $35.0 million; (2) an extension of the maturity date of the Term Loan Agreement to the earlier of (a) the termination date specified in the Revolving Credit Facility (as defined in the Third Credit Agreement Amendment), and (b) September 18, 2023; (3) the reduction of the non-default interest rate applicable to the Term Loan under the Term Loan Agreement to a fluctuating rate of interest equal to three-month LIBOR (with a floor of 1.5%) plus 8.25% per annum; and (4) the elimination of Cash Dominion Event status and a change in Cash Dominion to be triggered only in the event of (a) the occurrence and continuance of any Event of Default or (b) Excess Availability of less than (A) 10.0% of the Revolving Loan Cap at any time or (B) 12.5% of the Revolving Loan Cap for three consecutive Business Days. During 2018, debt issuance costs of approximately $0.3 million were associated with the Term

 

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Loan and are being amortized over its term. The elimination of cash dominion status changed the debt classification from a short-term to long-term obligation.

On February 26, 2019, we entered into Amendment No. 3 (the “Third Term Loan Amendment”) to the Term Loan Agreement. The Third Term Loan Amendment provided for, among other things, a modification to the definition of “Capital Expenditures” and “Permitted Indebtedness” as defined in the Third Term Loan Amendment.

The Term Loan Agreement contains customary representations and warranties, affirmative and negative covenants including the retention of the existing minimum 1.0 to 1.0 consolidated fixed charge coverage ratio under the Credit Agreement, which limits borrowing availability if not met during periods where Revolving Excess Availability (as defined in the Term Loan Agreement) is less than the greater of $20.0 million or 10.0 percent of Combined Loan Cap (as defined in the Term Loan Agreement) for four consecutive business days, and events of default for a facility of this type. The Term Loan is secured by a second lien security interest (subordinate only to the liens securing the Credit Agreement) on all assets securing the Credit Agreement (which consist of substantially all of our personal property), except furniture, fixtures and equipment and intellectual property, upon which the Term Loan lenders have a first lien security interest.

The Term Loan is subject to certain mandatory prepayments if an Event of Default (as defined in the Term Loan Agreement) exists. If no such Event of Default exists, proceeds of the Term Loan priority collateral are to be applied to amounts outstanding under the Credit Agreement.

The Term Loan Agent and Wells Fargo have entered into an Intercreditor Agreement dated as of March 14, 2018 (the “Intercreditor Agreement”), acknowledged by us under the Term Loan and the Credit Agreement. The Intercreditor Agreement was also amended on September 18, 2018 to incorporate the amendment to the Revolving Credit Facility and the Term Loan Agreement.

The weighted average interest rate for the amount outstanding under the Term Loan was 10.84 percent as of May 4, 2019.

Promissory Note

We believe we can borrow, on a short-term basis and subject to the formal agreement of the lender, amounts up to the cash surrender value of the life insurance policies related to our executive deferred compensation plans to provide additional liquidity if needed. At May 4, 2019, the cash surrender value of our life insurance policies was $15.2 million.

On February 2, 2018, we executed a promissory note under which we borrowed approximately $13.7 million (the “Promissory Note”) from SunTrust Bank (the “Trustee”) in its capacity as the trustee under a trust agreement (the “Trust Agreement”) dated September 1, 1999. The trust established by the Trust Agreement (the “Trust”) holds certain life insurance policies related to our executive deferred compensation plans. The Trustee obtained loans from the insurance policies held in the Trust in an amount not less than the amount of the Promissory Note. The Promissory Note was a short-term obligation and the proceeds were used to pay down borrowings under the existing Credit Agreement which provided additional availability under that agreement.

The Promissory Note had a fixed interest rate of 3.58 percent per annum and an original maturity date of April 1, 2018. On March 7, 2018, we executed an amendment to the Promissory Note under which the Trustee extended the maturity date of the note from April 1, 2018, to July 1, 2018 (the “Maturity Date”). The amendment did not alter the short-term nature of the Promissory Note. The Promissory Note could be prepaid in whole or in part at any time. All unpaid principal and accrued interest on the Promissory Note would have become due and payable on the Maturity Date. The Trustee could offset payments due under the Promissory Note against amounts we would otherwise be entitled to withdraw from the Trust under the terms of the Trust Agreement. On June 29, 2018, we repaid the outstanding balance of the Promissory Note.

On July 31, 2018, we executed a second promissory note from SunTrust Bank for $13.0 million, which carried a fixed interest rate of 3.58 percent per annum and an original maturity date of September 10, 2018. This note included the same terms as the Promissory Note executed on February 2, 2018. On September 10, 2018, we repaid the outstanding balance of the second promissory note.

Cash flows from operations are driven by sales as well as the credit terms available to us from our vendors and their factors. Our sales generate cash almost immediately and are affected by customer traffic to our stores and the desirability of our merchandise to those customers. Customer traffic is in turn affected by our marketing and advertising, general economic

 

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and business conditions, and weather. Changes in these factors could have a material effect on our ability to generate sales and thus cash inflows to operate our business.

Our cash outflows can be materially affected by changes in credit terms and availability from our vendors and their factors. During the first quarter of 2018, our vendors and factors constricted our credit terms and limits significantly. This was a reaction to our 2017 third-quarter results, as well as concern about the general retail environment at the time, which included multiple bankruptcies and restructurings by other retailers in the same business. This constriction caused us to make payments to our vendors and factors more quickly than in prior periods, thus increasing our debt levels during that period. The added availability from the Term Loan Agreement was a key part of our ability to fund the accelerated payments. We have non-disclosure agreements with the major factors, credit insurers and several of our largest vendors which allow us to communicate our operating results and cash flows to them on a regular basis. During 2018, we made periodic presentations to our key vendors and factors and we continue to communicate our operating results and cash flows to them. These steps have contributed to the positive movement in their credit arrangements with us, which has continued through the first quarter of 2019.

Our working capital fluctuates with seasonal variations which affect our borrowings and availability. Our availability is highest just after our strong seasonal spring and holiday selling seasons and is lowest just before those seasons as we build inventory levels. Working capital is also used to support capital investments for maintenance of our existing stores, system improvements and new store openings. We have reduced our capital investments to enhance our cash flows. These reduced levels of investment can be sustained for the foreseeable future as prior to this our store base and systems have been well maintained. Positive operating results and cash flows will help us preserve satisfactory credit terms and allow us to operate within the borrowing availability under our Credit Agreement and Term Loan Agreement.    

Based on our current expectations regarding our operating results we consider our resources adequate to satisfy our cash needs for at least the next 12 months.

As of May 4, 2019, we had cash and cash equivalents of $21.9 million and $118.8 million in borrowings under our Credit Agreement and $35.0 million in borrowings under the Term Loan, for a total of $153.0 million in outstanding borrowings, net of $0.8 million in unamortized debt issuance costs. As of February 2, 2019, we had cash and cash equivalents of $9.0 million and $119.1 million in borrowings under our Credit Agreement and $35.0 million in borrowings under the Term Loan, for a total of $153.3 million in outstanding borrowings, net of $0.8 million in unamortized debt issuance costs. As of May 5, 2018, we had cash and cash equivalents of $16.2 million and $146.1 million in borrowings under our Credit Agreement, $50.0 million in borrowings under the Term Loan and $13.3 million in borrowings under the Promissory Note, for a total of $209.4 million in outstanding borrowings. The total amount available for borrowings and letters of credit under our Credit Agreement is the lesser of $240.0 million or 100 percent of eligible credit card receivables and the net recovery percentage value of inventories less reserves. On May 4, 2019, in addition to outstanding borrowings under the Credit Agreement and Term Loan, we had $7.9 million of outstanding letters of credit. Our Excess Availability (as defined in the Credit Agreement) was $102.0 million on May 4, 2019. As of May 4, 2019, we had $15.2 million available to borrow, on a short-term basis, which would be collateralized by life insurance policies.

Cash Flows

 

       13 Weeks Ended  
May 4, 2019
      13 Weeks Ended  
May 5, 2018
    Change    
  

 

 

 

Cash provided by (used in):

      

Operating activities

     $         15,183     $ (47,206 )     $     62,389  

Investing activities

     (1,679     850       (2,529

Financing activities

     (620     52,121       (52,741
  

 

 

 

Net increase in cash and cash equivalents

     $         12,884     $             5,765     $ 7,119  
  

 

 

 

Net cash provided by operating activities was $15.2 million for the 13 weeks ended May 4, 2019, compared to net cash used in operating activities of $47.2 million for the 13 weeks ended May 5, 2018. The increase in cash provided by operating activities was primarily due to improved credit terms from vendors and factors since the first quarter of 2018. Our decreased inventory purchases over last year also affected operating cash flows.

Net cash used in investing activities was $1.7 million for the 13 weeks ended May 4, 2019, compared to net cash provided by investing activities of $0.9 million for the 13 weeks ended May 5, 2018. The change is primarily due to last year’s proceeds from cancelled corporate-owned life insurance policies.

 

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Net cash used in financing activities was $0.6 million during the 13 weeks ended May 4, 2019, compared to cash provided by financing activities of $52.1 million during the 13 weeks ended May 5, 2018. During the 13 weeks ended May 4, 2019, we had net repayments of debt of $0.3 million. We paid accrued cash dividends on vested employee stock awards of less than $0.1 million and capital lease payments of $0.2 million. In addition, we repurchased 102,543 shares of common stock for $0.1 million. During the 13 weeks ended May 5, 2018, we had net proceeds of debt of $53.3 million, primarily due to our accelerated payments to vendors. We also paid debt issuance costs of $0.8 million, paid accrued cash dividends on vested employee stock awards of $0.1 million and capital lease payments of $0.2 million. In addition, we repurchased 45,103 shares of common stock for less than $0.1 million. See Note 5 “Shareholders’ Equity” of the Notes to Condensed Consolidated Financial Statements (Unaudited) for further discussion.

Critical Accounting Policies and Estimates

We discuss our critical accounting policies and estimates in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the year ended February 2, 2019 and filed with the SEC on March 28, 2019. Except for the adoption of the lease accounting standard (Topic 842), we have made no significant changes in our critical accounting policies and estimates since February 2, 2019.

Recent Accounting Pronouncements

Recently issued accounting pronouncements are discussed in Note 1 “Basis of Presentation” of the Notes to Condensed Consolidated Financial Statements (Unaudited).

Seasonality and Inflation

Our business is seasonal. Sales and profitability are historically higher in the first and fourth quarters of the fiscal year, which include the spring and holiday seasons. Therefore, results for any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year.

Although we expect that our income will be influenced by general economic conditions, we do not believe that inflation has had a material effect on our results of operations. However, there can be no assurance that our business will not be affected materially by inflation in the future.

 

ITEM 4.

CONTROLS AND PROCEDURES

Under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this report. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of May 4, 2019, to provide reasonable assurance that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

There were no changes in our internal control over financial reporting during the most recent fiscal quarter that have materially affected or are reasonably likely to materially affect, our internal control over financial reporting other than the Company adopted ASC 842, Leases, on February 3, 2019, and implemented new controls and processes to meet the requirements of the standard.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

See the discussion of legal proceedings in Note 9 “Commitments and Contingencies” of the Notes to Condensed Consolidated Financial Statements (Unaudited) included in Item 1 of Part I of this Quarterly Report, which is incorporated by reference into this Item 1 of Part II.

ITEM 1A. RISK FACTORS

There have been no material changes in our risk factors from those described in our Annual Report on Form 10-K for the year ended February 2, 2019.

 

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table sets forth information regarding repurchases of our common stock during the quarter ended May 4, 2019:

 

ISSUER PURCHASES OF EQUITY SECURITIES

Period

 

  

Total
number

of shares
purchased

 

    

Average

price

paid per

share

 

    

 

Total number of
shares purchased
as part of publicly
announced plans
or programs (1)

 

    

 

Maximum number  
of shares that may  
yet be purchased  
under the plans or  
programs (1) (2)  

 

 

February 3, 2019 – March 2, 2019

     12,759      $             1.14        -      366,889

March 3, 2019 – April 6, 2019

     9,623        1.11        -      366,889

April 7, 2019 – May 4, 2019

 

    

 

80,161

 

 

 

    

 

0.97

 

 

 

    

 

-

 

 

 

   366,889

 

 

Total

 

    

 

102,543

 

 

 

   $

 

1.00

 

 

 

    

 

-

 

 

 

   366,889

 

 

 

(1)

Our Open Market Repurchase Program is conducted pursuant to authorizations made from time to time by our Board of Directors.

(2)

On November 30, 2015, the Board of Directors announced that it had authorized the repurchase of 500,000 shares of our common stock in addition to amounts previously authorized.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Subsequent to the disclosure of our first quarter earnings release on May 22, 2019 and prior to the filing of this Quarterly Report on Form 10-Q, we recognized a cumulative effect adjustment totaling $2.1 million for transition impairments associated with previously impaired leased locations relating to the adoption of ASU 2016-02, Leases, which was recorded as a reduction to operating lease assets and an increase to retained deficit. Furthermore, we identified a financial statement misstatement related to previous impairment calculations, which resulted in an overstatement of property and equipment, net, and an understatement of retained deficit of $4.1 million and $3.9 million as of February 2, 2019 and May 5, 2018, respectively. The error also resulted in an understatement of selling, general and administrative expenses of $0.2 million and less than $0.1 million for the year ended February 2, 2019 and 13 weeks ended May 5, 2018, respectively. Additionally, we revised the classification between the current and noncurrent portions of operating lease liabilities by $4.0 million for the 13 weeks ended May 4, 2019 which reduced the current portion and increased the noncurrent portion by this amount. These adjustments are reflected in the financial results included in this Quarterly Report on Form 10-Q.

ITEM 6. EXHIBITS

10.1  

Amendment No.  4 to Second Amended and Restated Credit Agreement, dated as of February  26, 2019, by and among Wells Fargo Bank, National Association, as administrative agent, the lenders party thereto, Stein Mart, Inc., Stein Mart Buying Corp. and Stein Mart Holding Corp., incorporated by reference to Exhibit 10.27 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended February 2, 2019

10.2  

Third Amendment to Term Loan Credit Agreement, dated February 26, 2019, by and among Stein Mart, Inc., Stein Mart Buying Corp., the guarantors named therein, Gordon Brothers Finance Company and the other lenders named therein, incorporated by reference to Exhibit 10.46 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended February 2, 2019

10.3*  

Gregory Kleffner Consulting Agreement, dated February 1, 2019, incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K/A (Amendment No. 2) filed on April 24, 2019

31.1+  

Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a)

31.2+  

Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a)

32.1+  

Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350

32.2+  

Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350

 

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  101     

Interactive data files from Stein Mart, Inc.’s Quarterly Report on Form 10-Q for the quarter ended May 4, 2019, formatted in XBRL (extensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets (Unaudited), (ii) the Condensed Consolidated Statements of Operations (Unaudited), (iii) the Condensed Consolidated Statements of Comprehensive Income (Unaudited), (iv) the Condensed Consolidated Statements of Shareholders’ Equity (Unaudited), (v) the Condensed Consolidated Statements of Cash Flows (Unaudited), and (vi) the Notes to Condensed Consolidated Financial Statements (Unaudited)

  *     

Management contract or compensatory plan or arrangements.

  +     

Filed herewith.

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.

 

   

STEIN MART, INC.

  Date: June 18, 2019

   

By:   

 

/s/ D. Hunt Hawkins

     

D. Hunt Hawkins

     

Chief Executive Officer

     

/s/ James B. Brown

     

James B. Brown

     

Executive Vice President and Chief Financial Officer

 

28

EX-31.1 2 d632507dex311.htm EX-31.1 EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a)

I, D. Hunt Hawkins, certify that:

 

1.

I have reviewed this Quarterly Report on Form 10-Q of Stein Mart, Inc.;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

 

4.

The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

 

  a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  c.

Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  d.

Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

 

5.

The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

 

  a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

 

  b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

 

Date: June 18, 2019

     

/s/ D. Hunt Hawkins

     

D. Hunt Hawkins

     

Chief Executive Officer

EX-31.2 3 d632507dex312.htm EX-31.2 EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a)

I, James B. Brown, certify that:

 

1.

I have reviewed this Quarterly Report on Form 10-Q of Stein Mart, Inc.;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

 

4.

The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

 

  a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  c.

Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  d.

Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

 

5.

The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

 

  a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

 

  b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

 

Date: June 18, 2019

     

/s/ James B. Brown

     

James B. Brown

     

Executive Vice President and Chief Financial Officer

EX-32.1 4 d632507dex321.htm EX-32.1 EX-32.1

Exhibit 32.1

Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350

In connection with the Quarterly Report on Form 10-Q for the fiscal quarter ended May 4, 2019, of Stein Mart, Inc. (the “Form 10-Q”), I, D. Hunt Hawkins, Chief Executive Officer of Stein Mart, Inc., certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

1.

The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.

The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Stein Mart, Inc.

 

 

Date: June 18, 2019

     

/s/ D. Hunt Hawkins

     

D. Hunt Hawkins

     

Chief Executive Officer

EX-32.2 5 d632507dex322.htm EX-32.2 EX-32.2

Exhibit 32.2

Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350

In connection with the Quarterly Report on Form 10-Q for the fiscal quarter ended May 4, 2019, of Stein Mart, Inc. (the “Form 10-Q”), I, James B. Brown, Executive Vice President and Chief Financial Officer of Stein Mart, Inc., certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

1.

The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.

The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Stein Mart, Inc.

 

Date: June 18, 2019

     

/s/ James B. Brown

     

James B. Brown

     

Executive Vice President and Chief Financial Officer

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Excess Availability (as defined in the Term Loan Agreement) is less than the greater of $20.0&#160;million or 10.0&#160;percent of Combined Loan Cap (as defined in the Term Loan Agreement) for four consecutive business days, and events of default for a facility of this type. 0.0358 3 2018-02-28 2023-09-18 2020-02-28 2018-04-01 2018-09-10 2023-09-18 0.0100 1.0 1.0 0.015 0.0825 0.100 15200000 840598000 437107000 513748000 47874000 479000 3969000 -16000 87000 1000 278000 3000 730000 49000 54000 48065000 481000 60172000 -17951000 253000 102000 -3000 60797000 -16110000 237000 42953000 -16000 103000 730000 49000 54000 45405000 47978000 480000 56002000 -11843000 -246000 44393000 7334000 4000 4000 45000 1000 36000 37000 -23000 995000 995000 147000 147000 155000 155000 47910000 479000 56961000 -4501000 -242000 52697000 <div style="color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; margin-right: 0px;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">10. Income Taxes</div></div></div><div style="color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The provision for income taxes is based on a current estimate of the annual effective tax rate adjusted to reflect the impact of discrete items. Our effective income tax rate may fluctuate from quarter to quarter as a result of a variety of factors, including changes in our assessment of certain tax contingencies, valuation allowances, changes in tax law, outcomes of administrative audits, the impact of discrete items, and the mix of earnings. Our income tax expense for the 13 weeks ended May&#160;4, 2019, reflects our estimated minimal taxable income for the year. The effective tax rate will be close to zero percent for all of 2019.</div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; margin-right: 0px;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">9. Commitments and Contingencies</div></div></div><div style="color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">We are involved in various routine legal proceedings incidental to the conduct of our business. While some of these matters could be material to our results of operations or cash flows for any period if an unfavorable outcome results, we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our overall financial condition. During the 13 weeks ended May&#160;4, 2019 and May&#160;5, 2018, we did not accrue for any actual or anticipated loss contingencies.</div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">1. Basis of Presentation</div></div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px;">The accompanying Condensed Consolidated Financial Statements (Unaudited) have been prepared in accordance with accounting principles generally accepted in the United States of America (&#8220;GAAP&#8221;) for interim financial information and with the instructions to Form&#160;<div style="white-space: nowrap; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">10-Q</div>&#160;and Article 10 of Regulation&#160;<div style="white-space: nowrap; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">S-X.</div>&#160;Accordingly, they do not include all of the information and footnotes required by GAAP for annual audited financial statements. In our opinion, all adjustments (consisting primarily of normal and recurring adjustments) considered necessary for a fair presentation have been included. Due to the seasonality of our business, results for any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year. These Condensed Consolidated Financial Statements (Unaudited) should be read in conjunction with the audited Consolidated Financial Statements included in our Annual Report on Form&#160;<div style="white-space: nowrap; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">10-K</div>&#160;for the year ended February&#160;2, 2019, filed with the Securities and Exchange Commission (&#8220;SEC&#8221;) on March&#160;28, 2019.</div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 9pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">As used herein, the terms &#8220;we,&#8221; &#8220;our,&#8221; &#8220;us&#8221; and &#8220;Stein Mart&#8221; refer to Stein Mart, Inc. and its wholly-owned subsidiaries.</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 10pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Recently Adopted Accounting Standards</div></div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;">In February&#160;2016, the Financial Accounting Standards Board (&#8220;FASB&#8221;) issued Accounting Standards Update (&#8220;ASU&#8221;)&#160;<div style="white-space: nowrap; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">No.&#160;2016-02,</div>&#160;Leases, to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. We adopted this ASU and the related amendments as of February&#160;3, 2019.</div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;">At transition, we elected the package of practical expedients, which allowed us to carry forward the historical lease classification, to not reassess prior conclusions related to initial direct costs, and to not reassess whether any expired or existing contracts are or contain leases. We did not elect the use of hindsight to determine the term of our leases at transition. We also elected the practical expedient to not separate&#160;<div style="white-space: nowrap; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">non-lease</div>&#160;components from the lease components to which they relate and instead to combine them and account for them as a single lease component. We made an accounting policy election not to capitalize leases with an initial term of twelve months or less.</div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Adoption of the new standard had a significant effect on our Condensed Consolidated Balance Sheets (Unaudited) due to the addition of operating lease assets of $382.5&#160;million and operating lease liabilities of $422.7&#160;million, as of February&#160;3, 2019. We also recognized a cumulative effect adjustment that increased retained deficit by $2.1&#160;million for transition impairments related to previously impaired leased locations. The standard did not have a significant effect on our results of operations or cash flows. Consistent with the optional effective date transition method, the financial information in the Condensed Consolidated Balance Sheets (Unaudited) prior to the adoption of this new lease accounting guidance has not been adjusted and is therefore not comparable to the current period presented.</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">See Note 8 &#8220;Leases&#8221; for additional information.</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 10pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Recent Accounting Standards Not Yet Adopted</div></div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;">In August&#160;2018, the FASB issued ASU&#160;<div style="white-space: nowrap; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">No.&#160;2018-15,</div>&#160;Intangibles&#8212;Goodwill and&#160;<div style="white-space: nowrap; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Other&#8212;Internal-Use</div>&#160;Software (Subtopic&#160;<div style="white-space: nowrap; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">350-40).</div>&#160;This update provides additional guidance to ASU&#160;<div style="white-space: nowrap; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">No.&#160;2015-05,</div>&#160;Intangibles&#8212;Goodwill and&#160;<div style="white-space: nowrap; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Other&#8212;Internal-Use</div>&#160;Software (Subtopic&#160;<div style="white-space: nowrap; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">350-40),</div>&#160;which was issued in April 2015. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain&#160;<div style="white-space: nowrap; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">internal-use</div>&#160;software (and hosting arrangements that include an internal use software license). This ASU is effective for annual reporting periods beginning on or after December&#160;15, 2019, and interim periods within those annual periods with early adoption permitted in any interim period for which financial statements have not yet been issued. We are in the process of evaluating the effect that this ASU will have on our financial condition, results of operations and cash flows.</div> <table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">8. Leases</div></div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;">We lease all our retail store locations, support facilities and certain equipment under operating leases. Our store leases have varying terms and are generally for 10 years with options to extend the lease term for two or more&#160;<div style="white-space: nowrap; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">5-year</div>&#160;periods. Annual store rent is generally comprised of a fixed minimum amount plus an insignificant contingent amount based on a percentage of sales in excess of specified levels. Most store leases also require additional payments covering real estate taxes, common area costs and insurance. Certain lease agreements contain rent holidays, and/or rent escalation clauses. Except for contingent rent, we recognize rent expense on a straight-line basis over the lease term. Contingent rent, determined based on a percentage of sales in excess of specified levels, is recognized as rent expense when achievement of the specified sales that triggers the contingent rent is probable. Construction allowances and other such lease incentives are recorded on the Condensed Consolidated Balance Sheets (Unaudited) and are amortized on a straight-line basis as a reduction of rent expense. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement or modification date in determining the present value of lease payments.</div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">In addition to the operating lease assets presented on the Condensed Consolidated Balance Sheets (Unaudited), assets under finance leases of $2.0&#160;million are included in property and equipment, net on the Condensed Consolidated Balance Sheets (Unaudited) as of May&#160;4, 2019. The remaining finance lease obligation is split between accrued expenses and other current liabilities for the short-term portion and other liabilities for the long-term portion on the Condensed Consolidated Balance Sheets (Unaudited).</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The following table summarizes our classification of lease cost (in thousands):</div></div><div style="font-size: 12pt; color: rgb(0, 0, 0); font-family: &quot;times new roman&quot;; font-style: normal; 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Revenue Recognition</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px;">Revenue from sales of our merchandise is recognized at the time of sale net of any returns, discounts and&#160;percentage-off&#160;coupons. Our Ecommerce operation records revenue as orders are fulfilled and provided to a carrier for delivery. Shipping and handling fees charged to customers are also included in total net sales with corresponding costs recorded as cost of goods sold as they are considered a fulfillment cost. Future merchandise returns are estimated based on historical experience. Sales tax collected from customers is not recognized as revenue and is included in accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets (Unaudited) until paid. Our shoe department and vintage luxury handbag department inventories are each owned by separate single suppliers under supply agreements. Our commissions from the sales in these areas are included in net sales on the Condensed Consolidated Statements of Operations (Unaudited).</div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px;">We offer gift and merchandise return cards to our customers. At the time gift cards are sold, the issuance is recorded as a liability to customers, and no revenue is recognized. At the time merchandise return cards are issued for returned merchandise, the sale is reversed and a liability to customers is recorded. These card liabilities are reduced and sales revenue is recognized when they are redeemed for merchandise. 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letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(3,469</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; 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background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;1,984</div></div></div></td><td style="padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;3,378</div></div></div></td><td style="padding: 0in; white-space: nowrap; font-size: 10pt;;vertical-align:bottom;"><div style="font-size: 10pt; background: none; text-decoration: none; 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letter-spacing: 0px; top: 0px;;display:inline;">The following table sets forth the contract liabilities and their relationship to revenue (in thousands):</div></div></div><div style="clear: both; max-height: 0px;"></div><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div><table style="width: 100%; border-collapse: collapse; border-spacing: 0px;;margin : 0px auto;;text-align:left;"><tr style="break-inside: avoid; font-size: 8pt;"><td style="padding: 0in; font-size: 8pt; white-space: nowrap;;vertical-align:bottom;;width:;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 8pt; line-height: normal; white-space: nowrap;"><div style="font-size: 8pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;">&#160;</div></div></div></td><td style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 1pt solid black; padding: 0in; font-size: 8pt; white-space: nowrap;;vertical-align:bottom;;width:;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 8pt; line-height: normal; white-space: nowrap;"><div style="font-size: 8pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;">&#160;&#160;</div></div></div></td><td colspan="2" style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 1pt solid black; padding: 0in; font-size: 8pt; white-space: nowrap;;vertical-align:bottom;;width:;"><div style="text-align: center; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 8pt; line-height: normal; white-space: nowrap;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;">May&#160;4,&#160;2019</div></div></div></td><td style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 1pt solid black; padding: 0in; font-size: 8pt; white-space: nowrap;;vertical-align:bottom;;width:;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 8pt; line-height: normal; white-space: nowrap;"><div style="font-size: 8pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;">&#160;</div></div></div></td><td style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 1pt solid black; padding: 0in; font-size: 8pt; white-space: nowrap;;vertical-align:bottom;;width:;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 8pt; line-height: normal; white-space: nowrap;"><div style="font-size: 8pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;">&#160;</div></div></div></td><td colspan="2" style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 1pt solid black; padding: 0in; font-size: 8pt; white-space: nowrap;;vertical-align:bottom;;width:;"><div style="text-align: center; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 8pt; line-height: normal; white-space: nowrap;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;">February&#160;2,&#160;2019</div></div></div></td><td style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 1pt solid black; padding: 0in; font-size: 8pt; white-space: nowrap;;vertical-align:bottom;;width:;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 8pt; line-height: normal; white-space: nowrap;"><div style="font-size: 8pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;">&#160;</div></div></div></td><td style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 1pt solid black; padding: 0in; font-size: 8pt; white-space: nowrap;;vertical-align:bottom;;width:;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 8pt; line-height: normal; white-space: nowrap;"><div style="font-size: 8pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;">&#160;</div></div></div></td><td colspan="2" style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 1pt solid black; padding: 0in; font-size: 8pt; white-space: nowrap;;vertical-align:bottom;;width:;"><div style="text-align: center; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 8pt; line-height: normal; white-space: nowrap;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;">May&#160;5, 2018</div></div></div></td><td style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 1pt solid black; padding: 0in; font-size: 8pt; white-space: nowrap;;vertical-align:bottom;;width:;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 8pt; line-height: normal; white-space: nowrap;"><div style="font-size: 8pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;">&#160;</div></div></div></td></tr><tr style="break-inside: avoid; font-size: 10pt;"><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; width: 77.96%;;vertical-align:top;"><div style="margin: 0in 0px 0.0001pt 12pt; text-indent: -12pt; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">Deferred revenue contracts</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(10,617</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(11,017</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(12,115</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)</div></div></div></td></tr><tr style="break-inside: avoid; font-size: 10pt;"><td style="padding: 0in; font-size: 10pt; width: 77.96%;;vertical-align:top;"><div style="margin: 0in 0px 0.0001pt 12pt; text-indent: -12pt; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">Gift card liability</div></div></div></td><td style="padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(9,631</div></div></div></td><td style="padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(12,246</div></div></div></td><td style="padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(9,675</div></div></div></td><td style="padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td></tr><tr style="break-inside: avoid; font-size: 10pt;"><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; width: 77.96%;;vertical-align:top;"><div style="margin: 0in 0px 0.0001pt 12pt; text-indent: -12pt; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">Credit card reward liability</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(5,510</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in 0in 0.5pt; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(5,583</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in 0in 0.5pt; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(4,449</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in 0in 0.5pt; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td></tr><tr style="break-inside: avoid; font-size: 10pt;"><td style="padding: 0in; font-size: 10pt; width: 77.96%;;vertical-align:top;"><div style="margin: 0in 0px 0.0001pt 42pt; text-indent: -12pt; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">Liability for deferred revenue</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;&#160;</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(25,758</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(28,846</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(26,239</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)</div></div></div></td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="font-size: 12pt; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; background: none;"></div><div style="margin: 0in 0px 0.0001pt 0in; text-align: justify; font-family: &quot;times new roman&quot;, serif; 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table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> 18557000 18852000 14280000 9631000 12246000 9675000 6691000 9271000 8068000 4316000 4365000 7632000 44923000 32916000 38763000 84118000 77650000 78418000 <div style="color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; margin-right: 0px;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">5. Shareholders&#8217; Equity</div></div></div><div style="color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; margin-right: 0px;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;;font-style:italic;display:inline;">Dividends</div></div></div><div style="color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; margin-right: 0px;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">During the 13 weeks ended May&#160;4, 2019 and May&#160;5, 2018, there were no cash dividends declared.</div></div><div style="color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; margin-right: 0px;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;;font-style:italic;display:inline;">Stock Repurchase Plan</div></div></div><div style="color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt; font-family: arial; margin-right: 0px;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">During the 13 weeks ended May&#160;4, 2019 and May&#160;5, 2018, we repurchased 102,543 shares and 45,103 shares, respectively, of our common stock in the open market at a total cost of $0.1&#160;million and less than $0.1&#160;million, respectively. 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Earnings per Share</div></div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;">Basic earnings per share (&#8220;EPS&#8221;) is computed by dividing net income by the basic weighted-average number of common shares outstanding for the period. Diluted EPS is calculated by also considering the impact of potential common stock equivalents on both net income and weighted-average number of common shares outstanding. 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These shares are comprised of a mix of stock options, performance awards and restricted stock units. Stock options excluded were those that had exercise prices greater than the average market price of the common shares such that inclusion would have been anti-dilutive. Restricted stock units and performance shares excluded were shares that were anti-dilutive as calculated using the treasury stock method.</div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">7. 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(the &#8220;Equipment Term Loan&#8221;) with an original maturity of February 2018. Borrowings under the Revolving Credit Facility were initially used for a special dividend but are subsequently being used for working capital, capital expenditures and other general corporate purposes. During 2015, debt issuance costs of $0.4&#160;million were associated with the Revolving Credit Facility and the Equipment Term Loan. Debt issuance costs associated with the Credit Agreement are being amortized over its term. We repaid the Equipment Term Loan in full on January&#160;22, 2018, at which time the associated debt issuance costs were fully amortized.</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">On February&#160;19, 2018, we entered into Amendment No.&#160;1 (the &#8220;Credit Agreement Amendment&#8221;) to the Credit Agreement with Wells Fargo. The Credit Agreement Amendment provided for, among other things, an Accommodation Period (as defined in the Credit Agreement Amendment) during which we were not required to meet the Fixed Charge Coverage Ratio (as defined in the Credit Agreement). This change permitted us to borrow the full amount of the then applicable borrowing base until we delivered our financial statements for the Measurement Period (as defined in the Credit Agreement) ended February&#160;28, 2018.&#160;Pursuant to the Credit Agreement Amendment, a Cash Dominion Event (as defined in the Credit Agreement Amendment) occurred as of the effective date of the Credit Agreement Amendment and at all times thereafter. Because of the Cash Dominion Event, all of our cash receipts were swept daily to repay outstanding borrowings under the Credit Agreement and the amount outstanding under the Credit Agreement was classified as a short-term obligation. As noted below, the Third Credit Agreement Amendment removed the Cash Dominion Event effective September&#160;18, 2018.</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;">On March&#160;14, 2018, we entered into Amendment No.&#160;2 (the &#8220;Second Credit Agreement Amendment&#8221;) to the Credit Agreement with Wells Fargo. The Second Credit Agreement Amendment provided for, among other things, the following: (1)&#160;the $25.0&#160;million&#160;<div style="white-space: nowrap; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Tranche&#160;A-1</div>&#160;Revolving Loans (as defined in the Second Credit Agreement Amendment) were repaid in full with the proceeds of the Term Loan (as defined below); (2) the entry into the Intercreditor Agreement (as defined below); and (3)&#160;certain other modifications and updates to coordinate the Revolving Credit Facility with the Term Loan.</div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">On September&#160;18, 2018, we entered into Amendment No.&#160;3 (the &#8220;Third Credit Agreement Amendment&#8221;) to the Credit Agreement with Wells Fargo. The Third Credit Agreement Amendment provided for, among other things, the following: (1)&#160;the increase of Aggregate Tranche A Revolving Loan Commitments (as defined in the Second Credit Agreement Amendment) from $225.0&#160;million to $240.0&#160;million; (2)&#160;an extension of the maturity date of the Revolving Credit Facility to the earlier of (a)&#160;the maturity date of the Term Loan Agreement (as defined below) or (b)&#160;September&#160;18, 2023; and (3)&#160;the elimination of Cash Dominion Event status and a change in Cash Dominion to be triggered only in the event of (a)&#160;the occurrence and continuance of any Event of Default or (b)&#160;Excess Availability of less than (A) 10.0% of the loan cap at any time or (B) 12.5% of the loan cap for three consecutive business days. During 2018, debt issuance costs of less than $0.1&#160;million were associated with the Third Credit Agreement Amendment and are being amortized over its term. Debt issuance costs of $0.1&#160;million remaining under the initial Credit Agreement will also be amortized over the new term of the Third Credit Agreement Amendment. The elimination of cash dominion status changed the debt classification from a short-term to long-term obligation.</div></div><div style="font-family: arial; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt; margin-right: 0px;">On&#160;<div style="letter-spacing: 0px; font-size: 10pt; top: 0px;;display:inline;">February&#160;26, 2019, we entered into Amendment No.&#160;4 (the &#8220;Fourth Credit Agreement Amendment&#8221;) to the Credit Agreement with Wells Fargo. The Fourth Credit Agreement Amendment provided for, among other things, a modification to the definition of &#8220;Capital Expenditures&#8221; and &#8220;Permitted Indebtedness&#8221; as defined in the Fourth Credit Agreement Amendment.</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The total amount available for borrowings under the Credit Agreement is the lesser of $240.0&#160;million or 100&#160;percent of eligible credit card receivables and the net recovery percentage of eligible inventories less reserves. On May&#160;4, 2019, in addition to outstanding borrowings under the Credit Agreement, we had $7.9&#160;million of outstanding letters of credit and our Excess Availability (as defined in the Credit Agreement) was $102.0&#160;million.</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The Credit Agreement contains customary representations and warranties, affirmative and negative covenants (including the requirement of a 1.0 to 1.0 consolidated Fixed Charge Coverage Ratio upon the occurrence and during the continuance of any Covenant Compliance Event, as defined in the Credit Agreement), and events of default for facilities of this type and is cross-collateralized and cross-defaulted. Collateral for the Revolving Credit Facility consists of substantially all of our personal property. Wells Fargo has a first lien on all collateral other than equipment.</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Borrowings under the Credit Agreement are either base rate loans or London Interbank Offered Rate (&#8220;LIBOR&#8221;) loans. LIBOR loans bear interest equal to the adjusted LIBOR plus the applicable margin (125 to 175 basis points) depending on the quarterly average excess availability. Base Rate Loans bear interest equal to the highest of (a)&#160;the Federal Funds Rate plus 0.50&#160;percent, (b)&#160;the adjusted LIBOR plus 1.00&#160;percent, or (c)&#160;the Wells Fargo &#8220;prime rate,&#8221; plus the Applicable Margin (25 to 75 basis points).</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The weighted average interest rate for the amount outstanding under the Credit Agreement was 4.12&#160;percent as of May&#160;4, 2019.</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;;font-style:italic;display:inline;">Term Loan</div></div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;">On March&#160;14, 2018, we entered into a Term Loan Credit Agreement with Gordon Brothers Finance Company, as administrative agent (in such capacity, the &#8220;Term Loan Agent&#8221;), and Gordon Brothers Finance Company, LLC, as lender (the &#8220;Term Loan Agreement&#8221;). The Term Loan Agreement provided for a term loan in the amount of $50.0&#160;million (the &#8220;Term Loan&#8221;). Debt issuance costs associated with the Term Loan were capitalized in the amount of $0.9&#160;million and will be amortized over the term of the Term Loan. The net proceeds of $49.1&#160;million from the Term Loan were used to permanently pay off the $25.0&#160;million&#160;<div style="white-space: nowrap; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Tranche&#160;A-1&#160;Revolving</div>&#160;Loan (as defined in the Credit Agreement) and to pay down the Revolving Credit Facility. After utilizing proceeds from the Term Loan for repayment of amounts outstanding under the existing&#160;<div style="white-space: nowrap; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Tranche&#160;A-1&#160;Revolving</div>&#160;Loans, the Term Loan resulted in an increase in our Excess Availability of approximately $25.0&#160;million under the Credit Agreement.</div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The Term Loan originally matured on the earlier of (1)&#160;the termination date specified in our Credit Agreement, as such date may be extended with the consent of the Term Loan Agent or in accordance with the Intercreditor Agreement (defined below), and (2)&#160;March&#160;14, 2020.</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;">On September&#160;18, 2018, we entered into Amendment No.&#160;2 (the &#8220;Second Term Loan Amendment&#8221;) to the Term Loan with Gordon Brothers Finance Company. The Second Term Loan Amendment provided for, among other things, the following: (1)&#160;the reduction of the maximum amount of the Term Loan to $35.0&#160;million; (2)&#160;an extension of the maturity date of the Term Loan Agreement to the earlier of (a)&#160;the termination date specified in the Revolving Credit Facility (as defined in the Third Credit Agreement Amendment), and (b)&#160;September&#160;18, 2023; (3) the reduction of&#160;<div style="white-space: nowrap; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">the&#160;non-default</div>&#160;interest rate applicable to the Term Loan under the Term Loan Agreement to a fluctuating rate of interest equal to three-month LIBOR (with a floor of 1.5%) plus 8.25% per annum; and (4)&#160;the elimination of Cash Dominion Event status and a change in Cash Dominion to be triggered only in the event of (a)&#160;the occurrence and continuance of any Event of Default or (b)&#160;Excess Availability of less than (A) 10.0% of the Revolving Loan Cap at any time or (B) 12.5% of the Revolving Loan Cap for three consecutive Business Days. During 2018, debt issuance costs of approximately $0.3&#160;million were associated with the Term Loan and are being amortized over its term. The elimination of cash dominion status changed the debt classification from a short-term to long-term obligation.</div><div style="font-family: arial; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt; margin-right: 0px;">On&#160;<div style="letter-spacing: 0px; font-size: 10pt; top: 0px;;display:inline;">February&#160;26, 2019, we entered into Amendment No.&#160;3 (the &#8220;Third Term Loan Amendment&#8221;) to the Term Loan Agreement. The Third Term Loan Amendment provided for, among other things, a modification to the definition of &#8220;Capital Expenditures&#8221; and &#8220;Permitted Indebtedness&#8221; as defined in the Third Term Loan Amendment.</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The Term Loan Agreement contains customary representations and warranties, affirmative and negative covenants including the retention of the existing minimum 1.0 to 1.0 consolidated fixed charge coverage ratio under the Credit Agreement, which limits borrowing availability if not met during periods where Revolving Excess Availability (as defined in the Term Loan Agreement) is less than the greater of $20.0&#160;million or 10.0&#160;percent of Combined Loan Cap (as defined in the Term Loan Agreement) for four consecutive business days, and events of default for a facility of this type. The Term Loan is secured by a second lien security interest (subordinate only to the liens securing the Credit Agreement) on all assets securing the Credit Agreement (which consist of substantially all of our personal property), except furniture, fixtures and equipment and intellectual property, upon which the Term Loan lenders have a first lien security interest. If at any time prior to the first anniversary date of the Term Loan, the Revolving Excess Availability is less than $20.0&#160;million, if requested by the Term Loan Agent, the Term Loan will also be secured by a first lien on leasehold interests in real property with an aggregate value of not less than $10.0&#160;million, and the Credit Agreement will be secured by a second lien on such leasehold interests.</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The Term Loan is subject to certain mandatory prepayments if an Event of Default (as defined in the Term Loan Agreement) exists. If no such Event of Default exists, proceeds of the Term Loan priority collateral are to be applied to amounts outstanding under the Credit Agreement.</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The Term Loan Agent and Wells Fargo have entered into an Intercreditor Agreement dated as of March&#160;14, 2018 (the &#8220;Intercreditor Agreement&#8221;), acknowledged by us under the Term Loan and the Credit Agreement. The Intercreditor Agreement was also amended on September&#160;18, 2018 to incorporate the amendment to the Revolving Credit Facility and the Term Loan Agreement.</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The weighted average interest rate for the amount outstanding under the Term Loan was 10.84&#160;percent as of May&#160;4, 2019.</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;;font-style:italic;display:inline;">Promissory Note</div></div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">We believe we can borrow, on a short-term basis and subject to the formal agreement of the lender, amounts up to the cash surrender value of the life insurance policies related to our executive deferred compensation plans to provide additional liquidity if needed. At May&#160;4, 2019, the cash surrender value of our life insurance policies was $15.2&#160;million.</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">On February&#160;2, 2018, we executed a promissory note under which we borrowed approximately $13.7&#160;million (the &#8220;Promissory Note&#8221;) from SunTrust Bank (the &#8220;Trustee&#8221;) in its capacity as the trustee under a trust agreement (the &#8220;Trust Agreement&#8221;) dated September&#160;1, 1999. The trust established by the Trust Agreement (the &#8220;Trust&#8221;) holds certain life insurance policies related to our executive deferred compensation plans. The Trustee obtained loans from the insurance policies held in the Trust in an amount not less than the amount of the Promissory Note. The Promissory Note was a short-term obligation and the proceeds were used to pay down borrowings under the existing Credit Agreement which provided additional availability under that agreement.</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The Promissory Note had a fixed interest rate of 3.58&#160;percent per annum and an original maturity date of April&#160;1, 2018. On March&#160;7, 2018, we executed an amendment to the Promissory Note under which the Trustee extended the maturity date of the note from April&#160;1, 2018, to July&#160;1, 2018 (the &#8220;Maturity Date&#8221;). The amendment did not alter the short-term nature of the Promissory Note. The Promissory Note could be prepaid in whole or in part at any time. All unpaid principal and accrued interest on the Promissory Note would have become due and payable on the Maturity Date. The Trustee could offset payments due under the Promissory Note against amounts we would otherwise be entitled to withdraw from the Trust under the terms of the Trust Agreement. On June&#160;29, 2018, we repaid the outstanding balance of the second promissory note.</div></div><div style="font-size: 10pt; color: rgb(0, 0, 0); font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 12pt; margin-bottom: 0pt; font-family: arial; margin-right: 0px; text-align: justify;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">On July&#160;31, 2018, we executed a second promissory note from SunTrust Bank for $13.0&#160;million, which carried a fixed interest rate of 3.58&#160;percent per annum and an original maturity date of September&#160;10, 2018. This note included the same terms as the Promissory Note executed on February&#160;2, 2018. On September&#160;10, 2018, we repaid the outstanding balance of the Promissory Note.</div></div><div style="font-family: arial; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt; margin-right: 0px;">The&#160;<div style="letter-spacing: 0px; font-size: 10pt; top: 0px;;display:inline;">following table sets forth the aggregate maturities of our long-term debt at May&#160;4, 2019, for the following fiscal years (in thousands):</div></div><div style="font-size: 12pt; color: rgb(0, 0, 0); font-family: &quot;times new roman&quot;; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0px; margin-bottom: 0px; margin-right: 0px; background: none;"><div style="color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div><table style="letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-collapse: collapse; font-family: arial; font-size: 10pt; border-spacing: 0px;;margin : 0px auto;;text-align:left;;width:100%;"><tr style="font-size: 0px;"><td style="padding: 0px;;width:86%;"></td><td style="padding: 0px;;vertical-align:bottom;;width:4%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td></tr><tr style="break-inside:avoid; font-family:arial; font-size:10pt"><td style="padding-top: 0px; padding-bottom: 0px; background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="font-size: 10pt; margin: 0pt 0px 0pt 1em; text-indent: -1em; font-family: arial; line-height: normal;"><div style="color: rgb(0, 0, 0); letter-spacing: 0px; 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Revision of Previously Issued Financial Statements </div></div></div><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: arial, sans-serif; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">During the quarter ended May 4, 2019, we identified a financial statement misstatement related to previous impairment calculations, which resulted in an overstatement of property and equipment, net, and an understatement of retained deficit of $4.1 million and $3.9 million as of February 2, 2019 and May 5, 2018, respectively. The error also resulted in an understatement of selling, general and administrative expenses of $0.2 million and less than $0.1 million for the year ended February 2, 2019 and 13 weeks ended May 5, 2018, respectively. Based on an analysis of quantitative and qualitative factors, we determined that the error was not material to our prior interim and annual financial statements. 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padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)</div></div></div></td></tr><tr style="break-inside: avoid; font-size: 10pt;"><td style="padding: 0in; font-size: 10pt;;vertical-align:top;"><div style="margin: 0in 0px 0.0001pt 12pt; text-indent: -12pt; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">Cost of inventory returns</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; 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font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; 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font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; 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font-size: 8pt;"><td style="padding: 0in; font-size: 8pt; white-space: nowrap;;vertical-align:bottom;;width:;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 8pt; line-height: normal; white-space: nowrap;"><div style="font-size: 8pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;">&#160;</div></div></div></td><td style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 1pt solid black; padding: 0in; font-size: 8pt; white-space: nowrap;;vertical-align:bottom;;width:;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 8pt; line-height: normal; white-space: nowrap;"><div style="font-size: 8pt; 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background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;">&#160;</div></div></div></td><td colspan="2" style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 1pt solid black; padding: 0in; font-size: 8pt; white-space: nowrap;;vertical-align:bottom;;width:;"><div style="text-align: center; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 8pt; line-height: normal; white-space: nowrap;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;">February&#160;2,&#160;2019</div></div></div></td><td style="border-top: none; border-right: none; 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background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;">&#160;</div></div></div></td><td colspan="2" style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 1pt solid black; padding: 0in; font-size: 8pt; white-space: nowrap;;vertical-align:bottom;;width:;"><div style="text-align: center; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 8pt; line-height: normal; white-space: nowrap;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px; white-space: nowrap;;display:inline;">May&#160;5, 2018</div></div></div></td><td style="border-top: none; border-right: none; 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top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">Deferred revenue contracts</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(10,617</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(11,017</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(12,115</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)</div></div></div></td></tr><tr style="break-inside: avoid; font-size: 10pt;"><td style="padding: 0in; font-size: 10pt; width: 77.96%;;vertical-align:top;"><div style="margin: 0in 0px 0.0001pt 12pt; text-indent: -12pt; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">Gift card liability</div></div></div></td><td style="padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(9,631</div></div></div></td><td style="padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(12,246</div></div></div></td><td style="padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(9,675</div></div></div></td><td style="padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td></tr><tr style="break-inside: avoid; font-size: 10pt;"><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; width: 77.96%;;vertical-align:top;"><div style="margin: 0in 0px 0.0001pt 12pt; text-indent: -12pt; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">Credit card reward liability</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(5,510</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in 0in 0.5pt; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(5,583</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in 0in 0.5pt; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(4,449</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in 0in 0.5pt; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td></tr><tr style="break-inside: avoid; font-size: 10pt;"><td style="padding: 0in; font-size: 10pt; width: 77.96%;;vertical-align:top;"><div style="margin: 0in 0px 0.0001pt 42pt; text-indent: -12pt; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">Liability for deferred revenue</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;&#160;</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(25,758</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(28,846</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)&#160;</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt; width: 0.88%;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(26,239</div></div></div></td><td style="border-bottom: 1pt solid black; border-top: 1pt solid black; border-left: none; border-right: none; padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">)</div></div></div></td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="margin: 0in 0px 0.0001pt 0in; text-align: justify; font-family: &quot;times new roman&quot;, serif; font-size: 10pt;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">The following table sets forth a rollforward of the amounts included in contract liabilities for the periods presented (in thousands):</div></div></div><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div><table style="width: 100%; border-collapse: collapse; border-spacing: 0px;;margin : 0px auto;;text-align:left;"><tr style="font-size: 0px;"><td style="width: 94%; padding: 0px;"></td><td style="width: 1%; padding: 0px;;vertical-align:bottom;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="width: 1%; padding: 0px;;vertical-align:bottom;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td></tr><tr style="break-inside: avoid; font-size: 8pt;"><td style="padding: 0in; font-size: 8pt;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 8pt; line-height: normal;"><div style="font-size: 8pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; 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font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; border-bottom: 0.75pt solid black;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; border-bottom: 0.75pt solid black;;vertical-align:bottom;"><div style="text-align: right; margin: 0in 0px 0.0001pt 0in; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; letter-spacing: 0px; top: 0px;;display:inline;">(2,392)&#160;</div></div></div></td><td style="background: rgb(204, 238, 255); padding: 0in; font-size: 10pt; white-space: nowrap;;vertical-align:bottom;"><div style="margin: 0px 0px 0px 0in; font-family: &quot;times new roman&quot;, serif; background: none; font-size: 10pt; line-height: normal;"><div style="font-size: 10pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: arial, helvetica, sans-serif; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div></div></td></tr><tr style="break-inside: avoid; 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line-height: normal;">$2.8&#160;million and $2.3&#160;million in breakage and amortization were included in the beginning balance of contract liabilities for the 13 weeks ended May&#160;4, 2019 and May&#160;5, 2018, respectively.</div></td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> iso4217:USD xbrli:shares xbrli:pure iso4217:USD xbrli:shares $4.4 million and $4.5 million in net sales from redemptions were included in the beginning balance of contract liabilities for the 13 weeks ended May 4, 2019 and May 5, 2018, respectively. $2.8 million and $2.3 million in breakage and amortization were included in the beginning balance of contract liabilities for the 13 weeks ended May 4, 2019 and May 5, 2018, respectively. 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Document and Entity Information - shares
3 Months Ended
May 04, 2019
Jun. 13, 2019
Document and Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date May 04, 2019  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q1  
Entity Registrant Name STEIN MART INC  
Entity Central Index Key 0000884940  
Current Fiscal Year End Date --02-01  
Entity Current Reporting Status Yes  
Entity Filer Category Non-accelerated Filer  
Trading Symbol SMRT  
Entity Common Stock, Shares Outstanding   48,062,929
Entity Shell Company false  
Entity Emerging Growth Company false  
Entity Small Business true  
XML 14 R2.htm IDEA: XBRL DOCUMENT v3.19.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
May 04, 2019
Feb. 02, 2019
May 05, 2018
Current assets:      
Cash and cash equivalents $ 21,933 $ 9,049 $ 16,165
Inventories 274,281 255,884 296,964
Prepaid expenses and other current assets 31,838 28,326 35,597
Total current assets 328,052 293,259 348,726
Property and equipment, net of accumulated depreciation and amortization of $255,845, $250,955 and $234,910, respectively 114,252 119,740 140,184
Operating lease assets 374,039    
Other assets 24,255 24,108 24,838
Total assets 840,598 437,107 513,748
Current liabilities:      
Accounts payable 114,495 89,646 93,632
Current portion of debt     159,415
Current portion of operating lease liabilities 80,167    
Accrued expenses and other current liabilities 84,118 77,650 78,418
Total current liabilities 278,780 167,296 331,465
Long-term debt, net of current portion 152,999 153,253 49,266
Deferred rent   39,708 41,535
Noncurrent operating lease liabilities 332,079    
Other liabilities 31,335 33,897 38,785
Total liabilities 795,193 394,154 461,051
COMMITMENTS AND CONTINGENCIES
Shareholders' equity:      
Preferred stock - $.01 par value, 1,000,000 shares authorized; no shares issued or outstanding
Common stock - $.01 par value; 100,000,000 shares authorized; 48,065,250, 47,874,286 and 47,910,450 shares issued and outstanding, respectively 481 479 479
Additional paid-in capital 60,797 60,172 56,961
Retained deficit (16,110) (17,951) (4,501)
Accumulated other comprehensive income (loss) 237 253 (242)
Total shareholders' equity 45,405 42,953 52,697
Total liabilities and shareholders' equity $ 840,598 $ 437,107 $ 513,748
XML 15 R3.htm IDEA: XBRL DOCUMENT v3.19.2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
May 04, 2019
Feb. 02, 2019
May 05, 2018
Statement of Financial Position [Abstract]      
Accumulated depreciation and amortization $ 255,845 $ 250,955 $ 234,910
Preferred stock, par value $ 0.01 $ 0.01 $ 0.01
Preferred stock, shares authorized 1,000,000 1,000,000 1,000,000
Preferred stock, shares issued 0 0 0
Preferred stock, shares outstanding 0 0 0
Common stock, par value $ 0.01 $ 0.01 $ 0.01
Common stock, shares authorized 100,000,000 100,000,000 100,000,000
Common stock, shares issued 48,065,250 47,874,286 47,910,450
Common stock, shares outstanding 48,065,250 47,874,286 47,910,450
XML 16 R4.htm IDEA: XBRL DOCUMENT v3.19.2
Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
May 04, 2019
May 05, 2018
Income Statement [Abstract]    
Net sales $ 314,157 $ 326,605
Other revenue 5,225 4,382
Total revenue 319,382 330,987
Cost of merchandise sold 226,698 230,621
Selling, general and administrative expenses 86,136 90,509
Operating income 6,548 9,857
Interest expense, net 2,526 2,463
Income before income taxes 4,022 7,394
Income tax expense 53 60
Net income $ 3,969 $ 7,334
Net earnings per common share:    
Basic $ 0.08 $ 0.16
Diluted $ 0.08 $ 0.16
Weighted-average shares outstanding:    
Basic 47,111 46,610
Diluted 47,556 46,659
XML 17 R5.htm IDEA: XBRL DOCUMENT v3.19.2
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended
May 04, 2019
May 05, 2018
Statement of Comprehensive Income [Abstract]    
Net income $ 3,969 $ 7,334
Other comprehensive income (loss), net of tax:    
Amounts reclassified from accumulated other comprehensive income (loss) (16) 4
Comprehensive income $ 3,953 $ 7,338
XML 18 R6.htm IDEA: XBRL DOCUMENT v3.19.2
Condensed Consolidated Statements of Shareholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Deficit [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Balance at Feb. 03, 2018 $ 44,393 $ 480 $ 56,002 $ (11,843) $ (246)
Balance, shares at Feb. 03, 2018   47,978      
Net income 7,334     7,334  
Other comprehensive income (loss), net of tax 4       4
Reacquired shares, net (37) $ (1) (36)    
Reacquired shares, net, shares   (45)      
Issuance of restricted stock, net, shares   (23)      
Share-based compensation 995   995    
Cash dividends paid (147)     (147)  
Cash dividends payable 155     155  
Balance at May. 05, 2018 52,697 $ 479 56,961 (4,501) (242)
Balance, shares at May. 05, 2018   47,910      
Balance at Feb. 02, 2019 42,953 $ 479 60,172 (17,951) 253
Balance, shares at Feb. 02, 2019   47,874      
Net income 3,969     3,969  
Other comprehensive income (loss), net of tax (16)       (16)
Reacquired shares, net (103) $ (1) (102)    
Reacquired shares, net, shares   (87)      
Issuance of restricted stock, net   $ 3 (3)    
Issuance of restricted stock, net, shares   278      
Share-based compensation 730   730    
Cash dividends paid (49)     (49)  
Cash dividends payable 54     54  
Balance at May. 04, 2019 45,405 $ 481 $ 60,797 (16,110) $ 237
Balance, shares at May. 04, 2019   48,065      
Adjustment for adoption of accounting standard $ (2,133)     $ (2,133)  
XML 19 R7.htm IDEA: XBRL DOCUMENT v3.19.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
May 04, 2019
May 05, 2018
Cash flows from operating activities:    
Net income $ 3,969 $ 7,334
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation and amortization 7,338 8,070
Share-based compensation 730 995
Store closing (benefits) charges (8) 116
Impairment of property and other assets   299
Loss on disposal of property and equipment 1 99
Changes in assets and liabilities:    
Inventories (18,397) (26,727)
Prepaid expenses and other current assets (4,311) (8,977)
Other assets 7,553 (2,311)
Accounts payable 24,951 (25,735)
Accrued expenses and other current liabilities 6,422 217
Other liabilities (13,065) (586)
Net cash provided by (used in) operating activities 15,183 (47,206)
Cash flows from investing activities:    
Net acquisition of property and equipment (1,679) (1,664)
Proceeds from cancelled corporate owned life insurance policies   2,514
Net cash (used in) provided by investing activities (1,679) 850
Cash flows from financing activities:    
Proceeds from borrowings 102,025 428,877
Repayments of debt (102,325) (375,587)
Debt issuance costs   (802)
Cash dividends paid (49) (147)
Capital lease payments (168) (183)
Repurchase of common stock (103) (37)
Net cash (used in) provided by financing activities (620) 52,121
Net increase in cash and cash equivalents 12,884 5,765
Cash and cash equivalents at beginning of year 9,049 10,400
Cash and cash equivalents at end of period 21,933 16,165
Supplemental disclosures of cash flow information:    
Income taxes received (182) (228)
Interest paid 2,587 2,096
Accruals and accounts payable for capital expenditures $ 414 $ 379
XML 20 R8.htm IDEA: XBRL DOCUMENT v3.19.2
Basis of Presentation
3 Months Ended
May 04, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
1. Basis of Presentation
The accompanying Condensed Consolidated Financial Statements (Unaudited) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 
10-Q
 and Article 10 of Regulation 
S-X.
 Accordingly, they do not include all of the information and footnotes required by GAAP for annual audited financial statements. In our opinion, all adjustments (consisting primarily of normal and recurring adjustments) considered necessary for a fair presentation have been included. Due to the seasonality of our business, results for any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year. These Condensed Consolidated Financial Statements (Unaudited) should be read in conjunction with the audited Consolidated Financial Statements included in our Annual Report on Form 
10-K
 for the year ended February 2, 2019, filed with the Securities and Exchange Commission (“SEC”) on March 28, 2019.
As used herein, the terms “we,” “our,” “us” and “Stein Mart” refer to Stein Mart, Inc. and its wholly-owned subsidiaries.
Recently Adopted Accounting Standards
In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 
No. 2016-02,
 Leases, to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. We adopted this ASU and the related amendments as of February 3, 2019.
At transition, we elected the package of practical expedients, which allowed us to carry forward the historical lease classification, to not reassess prior conclusions related to initial direct costs, and to not reassess whether any expired or existing contracts are or contain leases. We did not elect the use of hindsight to determine the term of our leases at transition. We also elected the practical expedient to not separate 
non-lease
 components from the lease components to which they relate and instead to combine them and account for them as a single lease component. We made an accounting policy election not to capitalize leases with an initial term of twelve months or less.
Adoption of the new standard had a significant effect on our Condensed Consolidated Balance Sheets (Unaudited) due to the addition of operating lease assets of $382.5 million and operating lease liabilities of $422.7 million, as of February 3, 2019. We also recognized a cumulative effect adjustment that increased retained deficit by $2.1 million for transition impairments related to previously impaired leased locations. The standard did not have a significant effect on our results of operations or cash flows. Consistent with the optional effective date transition method, the financial information in the Condensed Consolidated Balance Sheets (Unaudited) prior to the adoption of this new lease accounting guidance has not been adjusted and is therefore not comparable to the current period presented.
See Note 8 “Leases” for additional information.
Recent Accounting Standards Not Yet Adopted
In August 2018, the FASB issued ASU 
No. 2018-15,
 Intangibles—Goodwill and 
Other—Internal-Use
 Software (Subtopic 
350-40).
 This update provides additional guidance to ASU 
No. 2015-05,
 Intangibles—Goodwill and 
Other—Internal-Use
 Software (Subtopic 
350-40),
 which was issued in April 2015. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain 
internal-use
 software (and hosting arrangements that include an internal use software license). This ASU is effective for annual reporting periods beginning on or after December 15, 2019, and interim periods within those annual periods with early adoption permitted in any interim period for which financial statements have not yet been issued. We are in the process of evaluating the effect that this ASU will have on our financial condition, results of operations and cash flows.
XML 21 R9.htm IDEA: XBRL DOCUMENT v3.19.2
Revision of Previously Issued Financial Statements
3 Months Ended
May 04, 2019
Accounting Changes and Error Corrections [Abstract]  
Revision of Previously Issued Financial Statements
2. Revision of Previously Issued Financial Statements
During the quarter ended May 4, 2019, we identified a financial statement misstatement related to previous impairment calculations, which resulted in an overstatement of property and equipment, net, and an understatement of retained deficit of $4.1 million and $3.9 million as of February 2, 2019 and May 5, 2018, respectively. The error also resulted in an understatement of selling, general and administrative expenses of $0.2 million and less than $0.1 million for the year ended February 2, 2019 and 13 weeks ended May 5, 2018, respectively. Based on an analysis of quantitative and qualitative factors, we determined that the error was not material to our prior interim and annual financial statements. We revised the accompanying Condensed Consolidated Balance Sheets (Unaudited) as of February 2, 2019 and May 5, 2018 and the Statement of Operations (Unaudited) for the 13 weeks ended May 5, 2018.
XML 22 R10.htm IDEA: XBRL DOCUMENT v3.19.2
Revenue Recognition
3 Months Ended
May 04, 2019
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
3. Revenue Recognition
Revenue from sales of our merchandise is recognized at the time of sale net of any returns, discounts and percentage-off coupons. Our Ecommerce operation records revenue as orders are fulfilled and provided to a carrier for delivery. Shipping and handling fees charged to customers are also included in total net sales with corresponding costs recorded as cost of goods sold as they are considered a fulfillment cost. Future merchandise returns are estimated based on historical experience. Sales tax collected from customers is not recognized as revenue and is included in accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets (Unaudited) until paid. Our shoe department and vintage luxury handbag department inventories are each owned by separate single suppliers under supply agreements. Our commissions from the sales in these areas are included in net sales on the Condensed Consolidated Statements of Operations (Unaudited).
We offer gift and merchandise return cards to our customers. At the time gift cards are sold, the issuance is recorded as a liability to customers, and no revenue is recognized. At the time merchandise return cards are issued for returned merchandise, the sale is reversed and a liability to customers is recorded. These card liabilities are reduced and sales revenue is recognized when they are redeemed for merchandise. Card liabilities are included in accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets (Unaudited).
Our gift and merchandise return cards may not ultimately be redeemed either in full or partially. We account for this “breakage” of unused amounts as revenue in proportion to the pattern of rights exercised by the customer. Breakage revenue is recorded within other revenue in the Condensed Consolidated Statements of Operations (Unaudited). During both the 13 weeks ended May 4, 2019 and May 5, 2018, we recognized $0.6 million of breakage revenue on unused gift and merchandise return cards.
Credit Card
We offer co-branded and private label credit cards under the Stein Mart brand. These cards are issued by Synchrony Bank (“Synchrony”). Synchrony extends credit directly to card holders, provides all servicing for the credit card accounts and bears all risk of credit and fraud losses.
We receive royalty revenue from Synchrony based on card usage in our stores and at other retailers for the Stein Mart Mastercard. We also receive revenues for new accounts and gain share based on the profitability of the overall program. Credit card revenue is recorded within other revenue in the Condensed Consolidated Statements of Operations (Unaudited). These revenues are recorded as they are earned based on the occurrence of the various program activities and represent the majority of other revenue.
Card holders are eligible to participate in the credit card rewards program, which provides for reward certificates. We defer a portion of our revenue for loyalty points earned by customers and recognize the revenue as the certificates earned are used to purchase merchandise by our customers. This revenue is recorded within other revenue in the Condensed Consolidated Statements of Operations (Unaudited).
Certificates may not ultimately be redeemed either in full or partially. We account for this “breakage” of unused amounts as revenue in proportion to the pattern of rights exercised by the customer. Breakage revenue is recorded within other revenue in the Condensed Consolidated Statements of Operations (Unaudited). During the 13 weeks ended May 4, 2019 and May 5, 2018, we recognized $1.9 million and $1.4 million, respectively, of breakage revenue on unused credit card reward certificates and points.
 
Revenue
The following table sets forth our revenue by type of contract (in thousands):
 
  13 Weeks Ended
May 4, 2019
  13 Weeks Ended
May 5, 2018
 
Store sales (1)
 $                293,289  $ 306,831 
Ecommerce sales (1)
  13,744   12,814 
Licensed department commissions (2)
  7,124   6,960 
Net sales
 $314,157  $                326,605 
Credit card revenue (3)
  2,564   2,268 
Breakage revenue (4)
  2,538   1,995 
Other
  123   119 
Other revenue
  5,225   4,382 
Total revenue
 $319,382  $330,987 
 
 (1)
Store and Ecommerce sales are net of any returns, discounts and percentage-off coupons.
 (2)
Licensed department commissions are net of any returns.
 (3)
Credit card revenue earned from Synchrony programs.
 (4)
Breakage revenue earned on unused gift and merchandise return cards and unused certificates and loyalty reward points.
 
The following table sets forth the gross up of the sales return reserve (in thousands):
 
 
  
May 4, 2019
 
 
February 2, 2019
 
 
May 5, 2018
 
Reserve for sales returns
  
$
(6,286
 
$
(3,469
 
$
(6,133
)
Cost of inventory returns
  
 
                3,372
 
 
 
                    1,984
 
 
 
                    3,378
 
 
The following table sets forth the contract liabilities and their relationship to revenue (in thousands):
 
 
  
May 4, 2019
 
 
February 2, 2019
 
 
May 5, 2018
 
Deferred revenue contracts
  
$
(10,617
 
$
(11,017
 
$
(12,115
)
Gift card liability
  
 
(9,631
 
 
(12,246
 
 
(9,675
Credit card reward liability
  
 
(5,510
 
 
(5,583
 
 
(4,449
Liability for deferred revenue
  
$
(25,758
 
$
(28,846
 
$
(26,239
)
 
Contract liabilities include consideration received for gift card and loyalty related performance obligations that have not been satisfied as of the dates presented above.
 
The following table sets forth a rollforward of the amounts included in contract liabilities for the periods presented (in thousands):
 
 
  
13 Weeks Ended
May 4, 2019
 
  
13 Weeks Ended
May 5, 2018
 
Beginning balance
  
$
                  28,846
 
  
$
 29,381 
 
Current period gift cards sold and loyalty reward points earned
  
 
7,501
 
  
 
7,101 
 
Net sales from redemptions (1)
  
 
(7,651)
 
  
 
(7,851) 
 
Breakage and amortization (2)
  
 
(2,938)
 
  
 
(2,392) 
 
Ending balance
  
$
25,758
 
  
$
                  26,239 
 
 
 (1)
$4.4 million and $4.5 million in net sales from redemptions were included in the beginning balance of contract liabilities for the 13 weeks ended May 4, 2019 and May 5, 2018, respectively.
 (2)
$2.8 million and $2.3 million in breakage and amortization were included in the beginning balance of contract liabilities for the 13 weeks ended May 4, 2019 and May 5, 2018, respectively.
XML 23 R11.htm IDEA: XBRL DOCUMENT v3.19.2
Accrued Expenses and Other Current Liabilities
3 Months Ended
May 04, 2019
Payables and Accruals [Abstract]  
Accrued Expenses and Other Current Liabilities
4. Accrued Expenses and Other Current Liabilities
The following table sets forth the major components of accrued expenses and other current liabilities (in thousands):
 
    May 4, 2019      February 2, 2019          May 5, 2018     
Property taxes
 $18,557  $18,852  $14,280   
Unredeemed gift and merchandise return cards
  9,631   12,246   9,675   
Compensation and employee benefits
  6,691   9,271   8,068   
Accrued vacation
  4,316   4,365   7,632   
Other
  44,923   32,916   38,763   
Accrued expenses and other current liabilities
 $84,118  $77,650  $78,418   
XML 24 R12.htm IDEA: XBRL DOCUMENT v3.19.2
Shareholders' Equity
3 Months Ended
May 04, 2019
Equity [Abstract]  
Shareholders' Equity
5. Shareholders’ Equity
Dividends
During the 13 weeks ended May 4, 2019 and May 5, 2018, there were no cash dividends declared.
Stock Repurchase Plan
During the 13 weeks ended May 4, 2019 and May 5, 2018, we repurchased 102,543 shares and 45,103 shares, respectively, of our common stock in the open market at a total cost of $0.1 million and less than $0.1 million, respectively. Stock repurchases on the open market, under a Board of Directors authorized plan, were for taxes due on the vesting of employee stock awards. As of May 4, 2019, there are 366,889 shares which can be repurchased pursuant to the Board of Directors’ current authorization.
XML 25 R13.htm IDEA: XBRL DOCUMENT v3.19.2
Earnings per Share
3 Months Ended
May 04, 2019
Earnings Per Share [Abstract]  
Earnings per Share
6. Earnings per Share
Basic earnings per share (“EPS”) is computed by dividing net income by the basic weighted-average number of common shares outstanding for the period. Diluted EPS is calculated by also considering the impact of potential common stock equivalents on both net income and weighted-average number of common shares outstanding. We no longer compute EPS under the 
two-class
 method since we do not have any remaining participating securities containing 
non-forfeitable
 rights to dividends.
The following table sets forth a reconciliation of basic weighted-average number of common shares to diluted weighted-average number of common shares (in thousands):
 
  13 Weeks Ended
May 4, 2019
    13 Weeks Ended  
May 5, 2018
 
Basic weighted-average shares outstanding
  47,111   46,610 
Incremental shares from share-based compensation plans
  445   49 
Diluted weighted-average shares outstanding
  47,556   46,659 
Diluted weighted-average shares outstanding exclude approximately 2.9 million shares and 3.7 million shares during the 13 weeks ended May 4, 2019 and May 5, 2018, respectively, which are anti-dilutive for the periods presented. These shares are comprised of a mix of stock options, performance awards and restricted stock units. Stock options excluded were those that had exercise prices greater than the average market price of the common shares such that inclusion would have been anti-dilutive. Restricted stock units and performance shares excluded were shares that were anti-dilutive as calculated using the treasury stock method.
XML 26 R14.htm IDEA: XBRL DOCUMENT v3.19.2
Debt
3 Months Ended
May 04, 2019
Debt Disclosure [Abstract]  
Debt
7. Debt
The following table sets forth our debt (in thousands):
 
          May 4, 2019              February 2, 2019              May 5, 2018        
Revolving credit facility
   $118,800    $119,100    $146,128 
Term loan
  35,000   35,000   50,000 
Promissory note
  -   -   13,287 
   Total debt
  153,800   154,100   209,415  
Current portion
  -   -   (159,415) 
Debt issuance costs
  (801  (847)   (734) 
   Long-term debt
   $152,999    $153,253    $49,266  
Revolving Credit Facility and Equipment Term Loan
On February 3, 2015, we entered into a $250.0 million senior secured revolving credit facility pursuant to a second amended and restated credit agreement (the “Credit Agreement”) with Wells Fargo Bank (“Wells Fargo”), with an original maturity of February 2020 (the “Revolving Credit Facility”) and a secured $25.0 million master loan agreement with Wells Fargo Equipment Finance, Inc. (the “Equipment Term Loan”) with an original maturity of February 2018. Borrowings under the Revolving Credit Facility were initially used for a special dividend but are subsequently being used for working capital, capital expenditures and other general corporate purposes. During 2015, debt issuance costs of $0.4 million were associated with the Revolving Credit Facility and the Equipment Term Loan. Debt issuance costs associated with the Credit Agreement are being amortized over its term. We repaid the Equipment Term Loan in full on January 22, 2018, at which time the associated debt issuance costs were fully amortized.
On February 19, 2018, we entered into Amendment No. 1 (the “Credit Agreement Amendment”) to the Credit Agreement with Wells Fargo. The Credit Agreement Amendment provided for, among other things, an Accommodation Period (as defined in the Credit Agreement Amendment) during which we were not required to meet the Fixed Charge Coverage Ratio (as defined in the Credit Agreement). This change permitted us to borrow the full amount of the then applicable borrowing base until we delivered our financial statements for the Measurement Period (as defined in the Credit Agreement) ended February 28, 2018. Pursuant to the Credit Agreement Amendment, a Cash Dominion Event (as defined in the Credit Agreement Amendment) occurred as of the effective date of the Credit Agreement Amendment and at all times thereafter. Because of the Cash Dominion Event, all of our cash receipts were swept daily to repay outstanding borrowings under the Credit Agreement and the amount outstanding under the Credit Agreement was classified as a short-term obligation. As noted below, the Third Credit Agreement Amendment removed the Cash Dominion Event effective September 18, 2018.
On March 14, 2018, we entered into Amendment No. 2 (the “Second Credit Agreement Amendment”) to the Credit Agreement with Wells Fargo. The Second Credit Agreement Amendment provided for, among other things, the following: (1) the $25.0 million 
Tranche A-1
 Revolving Loans (as defined in the Second Credit Agreement Amendment) were repaid in full with the proceeds of the Term Loan (as defined below); (2) the entry into the Intercreditor Agreement (as defined below); and (3) certain other modifications and updates to coordinate the Revolving Credit Facility with the Term Loan.
On September 18, 2018, we entered into Amendment No. 3 (the “Third Credit Agreement Amendment”) to the Credit Agreement with Wells Fargo. The Third Credit Agreement Amendment provided for, among other things, the following: (1) the increase of Aggregate Tranche A Revolving Loan Commitments (as defined in the Second Credit Agreement Amendment) from $225.0 million to $240.0 million; (2) an extension of the maturity date of the Revolving Credit Facility to the earlier of (a) the maturity date of the Term Loan Agreement (as defined below) or (b) September 18, 2023; and (3) the elimination of Cash Dominion Event status and a change in Cash Dominion to be triggered only in the event of (a) the occurrence and continuance of any Event of Default or (b) Excess Availability of less than (A) 10.0% of the loan cap at any time or (B) 12.5% of the loan cap for three consecutive business days. During 2018, debt issuance costs of less than $0.1 million were associated with the Third Credit Agreement Amendment and are being amortized over its term. Debt issuance costs of $0.1 million remaining under the initial Credit Agreement will also be amortized over the new term of the Third Credit Agreement Amendment. The elimination of cash dominion status changed the debt classification from a short-term to long-term obligation.
On 
February 26, 2019, we entered into Amendment No. 4 (the “Fourth Credit Agreement Amendment”) to the Credit Agreement with Wells Fargo. The Fourth Credit Agreement Amendment provided for, among other things, a modification to the definition of “Capital Expenditures” and “Permitted Indebtedness” as defined in the Fourth Credit Agreement Amendment.
The total amount available for borrowings under the Credit Agreement is the lesser of $240.0 million or 100 percent of eligible credit card receivables and the net recovery percentage of eligible inventories less reserves. On May 4, 2019, in addition to outstanding borrowings under the Credit Agreement, we had $7.9 million of outstanding letters of credit and our Excess Availability (as defined in the Credit Agreement) was $102.0 million.
The Credit Agreement contains customary representations and warranties, affirmative and negative covenants (including the requirement of a 1.0 to 1.0 consolidated Fixed Charge Coverage Ratio upon the occurrence and during the continuance of any Covenant Compliance Event, as defined in the Credit Agreement), and events of default for facilities of this type and is cross-collateralized and cross-defaulted. Collateral for the Revolving Credit Facility consists of substantially all of our personal property. Wells Fargo has a first lien on all collateral other than equipment.
Borrowings under the Credit Agreement are either base rate loans or London Interbank Offered Rate (“LIBOR”) loans. LIBOR loans bear interest equal to the adjusted LIBOR plus the applicable margin (125 to 175 basis points) depending on the quarterly average excess availability. Base Rate Loans bear interest equal to the highest of (a) the Federal Funds Rate plus 0.50 percent, (b) the adjusted LIBOR plus 1.00 percent, or (c) the Wells Fargo “prime rate,” plus the Applicable Margin (25 to 75 basis points).
The weighted average interest rate for the amount outstanding under the Credit Agreement was 4.12 percent as of May 4, 2019.
Term Loan
On March 14, 2018, we entered into a Term Loan Credit Agreement with Gordon Brothers Finance Company, as administrative agent (in such capacity, the “Term Loan Agent”), and Gordon Brothers Finance Company, LLC, as lender (the “Term Loan Agreement”). The Term Loan Agreement provided for a term loan in the amount of $50.0 million (the “Term Loan”). Debt issuance costs associated with the Term Loan were capitalized in the amount of $0.9 million and will be amortized over the term of the Term Loan. The net proceeds of $49.1 million from the Term Loan were used to permanently pay off the $25.0 million 
Tranche A-1 Revolving
 Loan (as defined in the Credit Agreement) and to pay down the Revolving Credit Facility. After utilizing proceeds from the Term Loan for repayment of amounts outstanding under the existing 
Tranche A-1 Revolving
 Loans, the Term Loan resulted in an increase in our Excess Availability of approximately $25.0 million under the Credit Agreement.
The Term Loan originally matured on the earlier of (1) the termination date specified in our Credit Agreement, as such date may be extended with the consent of the Term Loan Agent or in accordance with the Intercreditor Agreement (defined below), and (2) March 14, 2020.
On September 18, 2018, we entered into Amendment No. 2 (the “Second Term Loan Amendment”) to the Term Loan with Gordon Brothers Finance Company. The Second Term Loan Amendment provided for, among other things, the following: (1) the reduction of the maximum amount of the Term Loan to $35.0 million; (2) an extension of the maturity date of the Term Loan Agreement to the earlier of (a) the termination date specified in the Revolving Credit Facility (as defined in the Third Credit Agreement Amendment), and (b) September 18, 2023; (3) the reduction of 
the non-default
 interest rate applicable to the Term Loan under the Term Loan Agreement to a fluctuating rate of interest equal to three-month LIBOR (with a floor of 1.5%) plus 8.25% per annum; and (4) the elimination of Cash Dominion Event status and a change in Cash Dominion to be triggered only in the event of (a) the occurrence and continuance of any Event of Default or (b) Excess Availability of less than (A) 10.0% of the Revolving Loan Cap at any time or (B) 12.5% of the Revolving Loan Cap for three consecutive Business Days. During 2018, debt issuance costs of approximately $0.3 million were associated with the Term Loan and are being amortized over its term. The elimination of cash dominion status changed the debt classification from a short-term to long-term obligation.
On 
February 26, 2019, we entered into Amendment No. 3 (the “Third Term Loan Amendment”) to the Term Loan Agreement. The Third Term Loan Amendment provided for, among other things, a modification to the definition of “Capital Expenditures” and “Permitted Indebtedness” as defined in the Third Term Loan Amendment.
The Term Loan Agreement contains customary representations and warranties, affirmative and negative covenants including the retention of the existing minimum 1.0 to 1.0 consolidated fixed charge coverage ratio under the Credit Agreement, which limits borrowing availability if not met during periods where Revolving Excess Availability (as defined in the Term Loan Agreement) is less than the greater of $20.0 million or 10.0 percent of Combined Loan Cap (as defined in the Term Loan Agreement) for four consecutive business days, and events of default for a facility of this type. The Term Loan is secured by a second lien security interest (subordinate only to the liens securing the Credit Agreement) on all assets securing the Credit Agreement (which consist of substantially all of our personal property), except furniture, fixtures and equipment and intellectual property, upon which the Term Loan lenders have a first lien security interest. If at any time prior to the first anniversary date of the Term Loan, the Revolving Excess Availability is less than $20.0 million, if requested by the Term Loan Agent, the Term Loan will also be secured by a first lien on leasehold interests in real property with an aggregate value of not less than $10.0 million, and the Credit Agreement will be secured by a second lien on such leasehold interests.
The Term Loan is subject to certain mandatory prepayments if an Event of Default (as defined in the Term Loan Agreement) exists. If no such Event of Default exists, proceeds of the Term Loan priority collateral are to be applied to amounts outstanding under the Credit Agreement.
The Term Loan Agent and Wells Fargo have entered into an Intercreditor Agreement dated as of March 14, 2018 (the “Intercreditor Agreement”), acknowledged by us under the Term Loan and the Credit Agreement. The Intercreditor Agreement was also amended on September 18, 2018 to incorporate the amendment to the Revolving Credit Facility and the Term Loan Agreement.
The weighted average interest rate for the amount outstanding under the Term Loan was 10.84 percent as of May 4, 2019.
Promissory Note
We believe we can borrow, on a short-term basis and subject to the formal agreement of the lender, amounts up to the cash surrender value of the life insurance policies related to our executive deferred compensation plans to provide additional liquidity if needed. At May 4, 2019, the cash surrender value of our life insurance policies was $15.2 million.
On February 2, 2018, we executed a promissory note under which we borrowed approximately $13.7 million (the “Promissory Note”) from SunTrust Bank (the “Trustee”) in its capacity as the trustee under a trust agreement (the “Trust Agreement”) dated September 1, 1999. The trust established by the Trust Agreement (the “Trust”) holds certain life insurance policies related to our executive deferred compensation plans. The Trustee obtained loans from the insurance policies held in the Trust in an amount not less than the amount of the Promissory Note. The Promissory Note was a short-term obligation and the proceeds were used to pay down borrowings under the existing Credit Agreement which provided additional availability under that agreement.
The Promissory Note had a fixed interest rate of 3.58 percent per annum and an original maturity date of April 1, 2018. On March 7, 2018, we executed an amendment to the Promissory Note under which the Trustee extended the maturity date of the note from April 1, 2018, to July 1, 2018 (the “Maturity Date”). The amendment did not alter the short-term nature of the Promissory Note. The Promissory Note could be prepaid in whole or in part at any time. All unpaid principal and accrued interest on the Promissory Note would have become due and payable on the Maturity Date. The Trustee could offset payments due under the Promissory Note against amounts we would otherwise be entitled to withdraw from the Trust under the terms of the Trust Agreement. On June 29, 2018, we repaid the outstanding balance of the second promissory note.
On July 31, 2018, we executed a second promissory note from SunTrust Bank for $13.0 million, which carried a fixed interest rate of 3.58 percent per annum and an original maturity date of September 10, 2018. This note included the same terms as the Promissory Note executed on February 2, 2018. On September 10, 2018, we repaid the outstanding balance of the Promissory Note.
The 
following table sets forth the aggregate maturities of our long-term debt at May 4, 2019, for the following fiscal years (in thousands):
 
2020
  $- 
2021
  - 
2022
  - 
2023
  153,800 
2024
  - 
Thereafter
  - 
  
 
 
 
Total
  $          153,800 
  
 
 
 
XML 27 R15.htm IDEA: XBRL DOCUMENT v3.19.2
Leases
3 Months Ended
May 04, 2019
Leases [Abstract]  
Leases
8. Leases
We lease all our retail store locations, support facilities and certain equipment under operating leases. Our store leases have varying terms and are generally for 10 years with options to extend the lease term for two or more 
5-year
 periods. Annual store rent is generally comprised of a fixed minimum amount plus an insignificant contingent amount based on a percentage of sales in excess of specified levels. Most store leases also require additional payments covering real estate taxes, common area costs and insurance. Certain lease agreements contain rent holidays, and/or rent escalation clauses. Except for contingent rent, we recognize rent expense on a straight-line basis over the lease term. Contingent rent, determined based on a percentage of sales in excess of specified levels, is recognized as rent expense when achievement of the specified sales that triggers the contingent rent is probable. Construction allowances and other such lease incentives are recorded on the Condensed Consolidated Balance Sheets (Unaudited) and are amortized on a straight-line basis as a reduction of rent expense. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement or modification date in determining the present value of lease payments.
In addition to the operating lease assets presented on the Condensed Consolidated Balance Sheets (Unaudited), assets under finance leases of $2.0 million are included in property and equipment, net on the Condensed Consolidated Balance Sheets (Unaudited) as of May 4, 2019. The remaining finance lease obligation is split between accrued expenses and other current liabilities for the short-term portion and other liabilities for the long-term portion on the Condensed Consolidated Balance Sheets (Unaudited).
The following table summarizes our classification of lease cost (in thousands):
 
    13 Weeks Ended
                  Statement of Operations Location May 4, 2019
Operating lease cost (1)
 
Selling, general and administrative expenses
   $23,527  
Finance lease cost:
      
 Amortization of finance lease assets
 
Selling, general and administrative expenses
  152  
 Interest on lease liabilities
 
Interest expense, net
  16  
Variable lease cost
 
Selling, general and administrative expenses
  9,930  
    
 
 
 
Net lease cost
     $                33,625  
    
 
 
 
 
 (1)
Includes lease costs for short-term leases, which are immaterial.
As of May 4, 2019, the following table summarizes the maturity of the company’s lease liabilities (in thousands):
 
  Operating  Finance    
    
  Leases  Leases  Total 
  
 
 
 
Remainder of 2019
   $75,170  $553  $75,723   
2020
  94,868   574   95,442   
2021
  84,084   1   84,085   
2022
  68,574   -        68,574   
2023
  53,515   -        53,515   
After 2023
  105,493   -        105,493   
  
 
 
 
Total lease payments
  481,704   1,128   482,832   
Less: Interest
  (69,458  (50  (69,508)  
  
 
 
 
Present value of lease liabilities
   $        412,246  $      1,078  $         413,324   
  
 
 
 
The following table summarizes our lease term and discount rate:
 
  13 Weeks Ended 
  
                          May  4, 2019                         
Weighted-average remainder term (years):
    
  Operating leases
  
                      5.8     years
 
  Finance leases
  
                      1.9     years
 
Weighted-average discount rate:
    
  Operating leases
  
                      5.4     %
 
  Finance leases
  
                      5.7     %
 
The following table summarizes the other information related to our lease liabilities (in thousands):
 
  13 Weeks Ended 
  
              May 4, 2019              
Cash paid for amounts included in the measurement of lease liabilities:
    
  Operating cash flows from operating leases
   $            25,218   
  Operating cash flows from finance leases
  16   
  Financing cash flows from finance leases
  168   
As of February 2, 2019, in accordance with ASC 840, 
Leases
, the aggregate minimum 
non-cancelable
 lease payments under operating leases were as follows (in thousands):
 
  Operating  Finance 
   
  Leases  Leases 
  
 
 
 
2019
   $101,139     $738   
2020
  93,190     574   
2021
  82,324     1   
2022
  66,820     -        
2023
  50,697     -        
Thereafter
  102,550     -        
  
 
 
 
Total minimum lease payments
   $    496,720     1,313   
  
 
 
     
Amount representing interest
      (67)  
      
 
 
 
Present value of minimum lease payments
      1,246   
Less: current portion
      (685)  
      
 
 
 
Long-term capital lease obligations
      $        561   
      
 
 
 
XML 28 R16.htm IDEA: XBRL DOCUMENT v3.19.2
Commitments and Contingencies
3 Months Ended
May 04, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
9. Commitments and Contingencies
We are involved in various routine legal proceedings incidental to the conduct of our business. While some of these matters could be material to our results of operations or cash flows for any period if an unfavorable outcome results, we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our overall financial condition. During the 13 weeks ended May 4, 2019 and May 5, 2018, we did not accrue for any actual or anticipated loss contingencies.
XML 29 R17.htm IDEA: XBRL DOCUMENT v3.19.2
Income Taxes
3 Months Ended
May 04, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
10. Income Taxes
The provision for income taxes is based on a current estimate of the annual effective tax rate adjusted to reflect the impact of discrete items. Our effective income tax rate may fluctuate from quarter to quarter as a result of a variety of factors, including changes in our assessment of certain tax contingencies, valuation allowances, changes in tax law, outcomes of administrative audits, the impact of discrete items, and the mix of earnings. Our income tax expense for the 13 weeks ended May 4, 2019, reflects our estimated minimal taxable income for the year. The effective tax rate will be close to zero percent for all of 2019.
XML 30 R18.htm IDEA: XBRL DOCUMENT v3.19.2
Revenue Recognition (Tables)
3 Months Ended
May 04, 2019
Revenue from Contract with Customer [Abstract]  
Summary of Revenue by Type of Contract
The following table sets forth our revenue by type of contract (in thousands):
 
  13 Weeks Ended
May 4, 2019
  13 Weeks Ended
May 5, 2018
 
Store sales (1)
 $                293,289  $ 306,831 
Ecommerce sales (1)
  13,744   12,814 
Licensed department commissions (2)
  7,124   6,960 
Net sales
 $314,157  $                326,605 
Credit card revenue (3)
  2,564   2,268 
Breakage revenue (4)
  2,538   1,995 
Other
  123   119 
Other revenue
  5,225   4,382 
Total revenue
 $319,382  $330,987 
 
 (1)
Store and Ecommerce sales are net of any returns, discounts and percentage-off coupons.
 (2)
Licensed department commissions are net of any returns.
 (3)
Credit card revenue earned from Synchrony programs.
 (4)
Breakage revenue earned on unused gift and merchandise return cards and unused certificates and loyalty reward points.
Summary of Gross Up of Sales Return Reserve
The following table sets forth the gross up of the sales return reserve (in thousands):
 
 
  
May 4, 2019
 
 
February 2, 2019
 
 
May 5, 2018
 
Reserve for sales returns
  
$
(6,286
 
$
(3,469
 
$
(6,133
)
Cost of inventory returns
  
 
                3,372
 
 
 
                    1,984
 
 
 
                    3,378
 
Summary of Contract Liabilities and Their Relationship to Revenue
The following table sets forth the contract liabilities and their relationship to revenue (in thousands):
 
 
  
May 4, 2019
 
 
February 2, 2019
 
 
May 5, 2018
 
Deferred revenue contracts
  
$
(10,617
 
$
(11,017
 
$
(12,115
)
Gift card liability
  
 
(9,631
 
 
(12,246
 
 
(9,675
Credit card reward liability
  
 
(5,510
 
 
(5,583
 
 
(4,449
Liability for deferred revenue
  
$
(25,758
 
$
(28,846
 
$
(26,239
)
Summary of Amounts Included in Contract Liabilities
The following table sets forth a rollforward of the amounts included in contract liabilities for the periods presented (in thousands):
 
 
  
13 Weeks Ended
May 4, 2019
 
  
13 Weeks Ended
May 5, 2018
 
Beginning balance
  
$
                  28,846
 
  
$
 29,381 
 
Current period gift cards sold and loyalty reward points earned
  
 
7,501
 
  
 
7,101 
 
Net sales from redemptions (1)
  
 
(7,651)
 
  
 
(7,851) 
 
Breakage and amortization (2)
  
 
(2,938)
 
  
 
(2,392) 
 
Ending balance
  
$
25,758
 
  
$
                  26,239 
 
 
 (1)
$4.4 million and $4.5 million in net sales from redemptions were included in the beginning balance of contract liabilities for the 13 weeks ended May 4, 2019 and May 5, 2018, respectively.
 (2)
$2.8 million and $2.3 million in breakage and amortization were included in the beginning balance of contract liabilities for the 13 weeks ended May 4, 2019 and May 5, 2018, respectively.
XML 31 R19.htm IDEA: XBRL DOCUMENT v3.19.2
Accrued Expenses and Other Current Liabilities (Tables)
3 Months Ended
May 04, 2019
Payables and Accruals [Abstract]  
Major Components of Accrued Expenses and Other Current Liabilities
The following table sets forth the major components of accrued expenses and other current liabilities (in thousands):
 
    May 4, 2019      February 2, 2019          May 5, 2018     
Property taxes
 $18,557  $18,852  $14,280   
Unredeemed gift and merchandise return cards
  9,631   12,246   9,675   
Compensation and employee benefits
  6,691   9,271   8,068   
Accrued vacation
  4,316   4,365   7,632   
Other
  44,923   32,916   38,763   
Accrued expenses and other current liabilities
 $84,118  $77,650  $78,418   
XML 32 R20.htm IDEA: XBRL DOCUMENT v3.19.2
Earnings per Share (Tables)
3 Months Ended
May 04, 2019
Earnings Per Share [Abstract]  
Calculation of Basic and Diluted Loss Per Common Share
The following table sets forth a reconciliation of basic weighted-average number of common shares to diluted weighted-average number of common shares (in thousands):
 
  13 Weeks Ended
May 4, 2019
    13 Weeks Ended  
May 5, 2018
 
Basic weighted-average shares outstanding
  47,111   46,610 
Incremental shares from share-based compensation plans
  445   49 
Diluted weighted-average shares outstanding
  47,556   46,659 
XML 33 R21.htm IDEA: XBRL DOCUMENT v3.19.2
Debt (Tables)
3 Months Ended
May 04, 2019
Debt Disclosure [Abstract]  
Summary of Debt
The following table sets forth our debt (in thousands):
 
          May 4, 2019              February 2, 2019              May 5, 2018        
Revolving credit facility
   $118,800    $119,100    $146,128 
Term loan
  35,000   35,000   50,000 
Promissory note
  -   -   13,287 
   Total debt
  153,800   154,100   209,415  
Current portion
  -   -   (159,415) 
Debt issuance costs
  (801  (847)   (734) 
   Long-term debt
   $152,999    $153,253    $49,266  
Aggregate Maturities of Debt
The 
following table sets forth the aggregate maturities of our long-term debt at May 4, 2019, for the following fiscal years (in thousands):
 
2020
  $- 
2021
  - 
2022
  - 
2023
  153,800 
2024
  - 
Thereafter
  - 
  
 
 
 
Total
  $          153,800 
  
 
 
 
XML 34 R22.htm IDEA: XBRL DOCUMENT v3.19.2
Leases (Tables)
3 Months Ended
May 04, 2019
Leases [Abstract]  
Rent Expense
The following table summarizes our classification of lease cost (in thousands):
 
    13 Weeks Ended
                  Statement of Operations Location May 4, 2019
Operating lease cost (1)
 
Selling, general and administrative expenses
   $23,527  
Finance lease cost:
      
 Amortization of finance lease assets
 
Selling, general and administrative expenses
  152  
 Interest on lease liabilities
 
Interest expense, net
  16  
Variable lease cost
 
Selling, general and administrative expenses
  9,930  
    
 
 
 
Net lease cost
     $                33,625  
    
 
 
 
 
 (1)
Includes lease costs for short-term leases, which are immaterial.
Lessee, Lease, Liability, Maturity
As of May 4, 2019, the following table summarizes the maturity of the company’s lease liabilities (in thousands):
 
  Operating  Finance    
    
  Leases  Leases  Total 
  
 
 
 
Remainder of 2019
   $75,170  $553  $75,723   
2020
  94,868   574   95,442   
2021
  84,084   1   84,085   
2022
  68,574   -        68,574   
2023
  53,515   -        53,515   
After 2023
  105,493   -        105,493   
  
 
 
 
Total lease payments
  481,704   1,128   482,832   
Less: Interest
  (69,458  (50  (69,508)  
  
 
 
 
Present value of lease liabilities
   $        412,246  $      1,078  $         413,324   
  
 
 
 
Disclosure of lease term and weighted average discount rate
The following table summarizes our lease term and discount rate:
 
  13 Weeks Ended 
  
                          May  4, 2019                         
Weighted-average remainder term (years):
    
  Operating leases
  
                      5.8     years
 
  Finance leases
  
                      1.9     years
 
Weighted-average discount rate:
    
  Operating leases
  
                      5.4     %
 
  Finance leases
  
                      5.7     %
 
Disclosure of cash flows relating to leases
The following table summarizes the other information related to our lease liabilities (in thousands):
 
  13 Weeks Ended 
  
              May 4, 2019              
Cash paid for amounts included in the measurement of lease liabilities:
    
  Operating cash flows from operating leases
   $            25,218   
  Operating cash flows from finance leases
  16   
  Financing cash flows from finance leases
  168   
Schedule of Future Minimum Rental Payments for Operating Leases
As of February 2, 2019, in accordance with ASC 840, 
Leases
, the aggregate minimum 
non-cancelable
 lease payments under operating leases were as follows (in thousands):
 
  Operating  Finance 
   
  Leases  Leases 
  
 
 
 
2019
   $101,139     $738   
2020
  93,190     574   
2021
  82,324     1   
2022
  66,820     -        
2023
  50,697     -        
Thereafter
  102,550     -        
  
 
 
 
Total minimum lease payments
   $    496,720     1,313   
  
 
 
     
Amount representing interest
      (67)  
      
 
 
 
Present value of minimum lease payments
      1,246   
Less: current portion
      (685)  
      
 
 
 
Long-term capital lease obligations
      $        561   
      
 
 
 
XML 35 R23.htm IDEA: XBRL DOCUMENT v3.19.2
Basis of Presentation - Additional Information (Detail) - USD ($)
$ in Thousands
May 04, 2019
Feb. 03, 2019
Operating lease, liability $ 412,246  
Operating lease, right-of-use asset 374,039  
Cumulative effect adjustment (2,133) $ 2,100
Accounting Standards Update 2016-02 [Member]    
Operating lease, liability 422,700  
Operating lease, right-of-use asset $ 382,500  
XML 36 R24.htm IDEA: XBRL DOCUMENT v3.19.2
Revision of Previously Issued Financial Statements - Additional Information (Detail) - Accounting Error [Member] - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
May 05, 2018
Feb. 02, 2019
Selling, General and Administrative Expenses [Member] | Maximum [Member]    
Quantifying Misstatement in Current Year Financial Statements, Amount   $ 0.2
Selling, General and Administrative Expenses [Member] | Minimum [Member]    
Quantifying Misstatement in Current Year Financial Statements, Amount $ 0.1  
Retained Earnings [Member]    
Quantifying Misstatement in Current Year Financial Statements, Amount $ 3.9 $ 4.1
XML 37 R25.htm IDEA: XBRL DOCUMENT v3.19.2
Revenue Recognition - Additional Information (Detail) - USD ($)
$ in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Breakage unused gift and merchandise revenue recognized $ 0.6 $ 0.6
Breakage revenue on unused credit card reward certificates $ 1.9 $ 1.4
XML 38 R26.htm IDEA: XBRL DOCUMENT v3.19.2
Revenue Recognition - Summary of Revenue by Type of Contract (Detail) - USD ($)
$ in Thousands
3 Months Ended
May 04, 2019
May 05, 2018
Disaggregation of Revenue [Line Items]    
Net sales $ 314,157 $ 326,605
Other revenue 5,225 4,382
Total revenue 319,382 330,987
Accounting Standards Update 2014-09 [Member]    
Disaggregation of Revenue [Line Items]    
Net sales 314,157 326,605
Other revenue 5,225 4,382
Total revenue 319,382 330,987
Store sales [Member] | Accounting Standards Update 2014-09 [Member]    
Disaggregation of Revenue [Line Items]    
Net sales 293,289 306,831
Ecommerce sales [Member] | Accounting Standards Update 2014-09 [Member]    
Disaggregation of Revenue [Line Items]    
Net sales 13,744 12,814
Licensee department commissions [Member] | Accounting Standards Update 2014-09 [Member]    
Disaggregation of Revenue [Line Items]    
Net sales 7,124 6,960
Credit Card [Member] | Accounting Standards Update 2014-09 [Member]    
Disaggregation of Revenue [Line Items]    
Other revenue 2,564 2,268
Breakage revenue [Member] | Accounting Standards Update 2014-09 [Member]    
Disaggregation of Revenue [Line Items]    
Other revenue 2,538 1,995
Other [Member] | Accounting Standards Update 2014-09 [Member]    
Disaggregation of Revenue [Line Items]    
Other revenue $ 123 $ 119
XML 39 R27.htm IDEA: XBRL DOCUMENT v3.19.2
Revenue Recognition - Summary of Gross Up of Sales Return Reserve (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
May 04, 2019
May 05, 2018
Feb. 02, 2019
Revenue from Contract with Customer [Abstract]      
Reserve for sales returns $ (6,286) $ (6,133) $ (3,469)
Cost of inventory returns $ 3,372 $ 3,378 $ 1,984
XML 40 R28.htm IDEA: XBRL DOCUMENT v3.19.2
Revenue Recognition - Summary of Contract Liabilities and Their Relationship to Revenue (Detail) - USD ($)
$ in Thousands
May 04, 2019
Feb. 02, 2019
May 05, 2018
Feb. 03, 2018
Revenue from Contract with Customer [Abstract]        
Deferred revenue contracts $ (10,617) $ (11,017) $ (12,115)  
Gift card liability (9,631) (12,246) (9,675)  
Credit Card Reward Liability (5,510) (5,583) (4,449)  
Liability for deferred revenue $ (25,758) $ (28,846) $ (26,239) $ (29,381)
XML 41 R29.htm IDEA: XBRL DOCUMENT v3.19.2
Revenue Recognition - Summary of Amounts Included in Contract Liabilities (Detail) - USD ($)
$ in Thousands
3 Months Ended
May 04, 2019
May 05, 2018
Revenue from Contract with Customer [Abstract]    
Beginning balance $ 28,846 $ 29,381
Current period gift cards sold and loyalty reward points earned 7,501 7,101
Net sales from redemptions [1] (7,651) (7,851)
Breakage and amortization [2] (2,938) (2,392)
Ending balance $ 25,758 $ 26,239
[1] $4.4 million and $4.5 million in net sales from redemptions were included in the beginning balance of contract liabilities for the 13 weeks ended May 4, 2019 and May 5, 2018, respectively.
[2] $2.8 million and $2.3 million in breakage and amortization were included in the beginning balance of contract liabilities for the 13 weeks ended May 4, 2019 and May 5, 2018, respectively.
XML 42 R30.htm IDEA: XBRL DOCUMENT v3.19.2
Revenue Recognition - Summary of Amounts Included in Contract Liabilities (Parenthetical) (Detail) - USD ($)
$ in Thousands
3 Months Ended
May 04, 2019
May 05, 2018
Disaggregation of Revenue [Line Items]    
Contract with Customer, Liability [1] $ (7,651) $ (7,851)
Revenue Recognition [Member]    
Disaggregation of Revenue [Line Items]    
Contract with Customer, Liability 4,400 4,500
Breakage and amortization [Member]    
Disaggregation of Revenue [Line Items]    
Contract with Customer, Liability $ 2,800 $ 2,300
[1] $4.4 million and $4.5 million in net sales from redemptions were included in the beginning balance of contract liabilities for the 13 weeks ended May 4, 2019 and May 5, 2018, respectively.
XML 43 R31.htm IDEA: XBRL DOCUMENT v3.19.2
Accrued Expenses and Other Current Liabilities - Major Components of Accrued Expenses and Other Current Liabilities (Detail) - USD ($)
$ in Thousands
May 04, 2019
Feb. 02, 2019
May 05, 2018
Accrued Liabilities and Other Liabilities [Abstract]      
Property taxes $ 18,557 $ 18,852 $ 14,280
Unredeemed gift and merchandise return cards 9,631 12,246 9,675
Compensation and employee benefits 6,691 9,271 8,068
Accrued vacation 4,316 4,365 7,632
Other 44,923 32,916 38,763
Accrued expenses and other current liabilities $ 84,118 $ 77,650 $ 78,418
XML 44 R32.htm IDEA: XBRL DOCUMENT v3.19.2
Shareholders' Equity - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Schedule of Shareholders' Equity [Line Items]    
Dividends declared and cash paid per share $ 0 $ 0
Repurchase of shares 102,543 45,103
Minimum [Member]    
Schedule of Shareholders' Equity [Line Items]    
Repurchase shares value   $ 0.1
Maximum [Member]    
Schedule of Shareholders' Equity [Line Items]    
Repurchase shares value $ 0.1  
Board of Directors [Member]    
Schedule of Shareholders' Equity [Line Items]    
Repurchase of shares, remaining 366,889  
XML 45 R33.htm IDEA: XBRL DOCUMENT v3.19.2
Earnings per Share - Additional Information (Detail) - shares
shares in Millions
3 Months Ended
May 04, 2019
May 05, 2018
Earnings Per Share [Abstract]    
Antidilutive securities excluded 2.9 3.7
XML 46 R34.htm IDEA: XBRL DOCUMENT v3.19.2
Earnings per Share - Calculation of Basic and Diluted Loss Per Common Share (Detail) - shares
shares in Thousands
3 Months Ended
May 04, 2019
May 05, 2018
Earnings Per Share [Abstract]    
Basic weighted-average shares outstanding 47,111 46,610
Incremental shares from share-based compensation plans 445 49
Diluted weighted-average shares outstanding 47,556 46,659
XML 47 R35.htm IDEA: XBRL DOCUMENT v3.19.2
Debt - Additional Information (Detail) - USD ($)
3 Months Ended
Sep. 18, 2018
Jul. 31, 2018
Mar. 14, 2018
Feb. 03, 2015
May 04, 2019
Feb. 02, 2019
May 05, 2018
Feb. 03, 2018
Jan. 30, 2016
Debt Instrument [Line Items]                  
Credit facility maximum borrowing capacity         $ 35,000,000 $ 35,000,000 $ 50,000,000    
Debt issuance costs         $ 801,000 847,000 734,000   $ 400,000
Borrowing capacity covenant, percentage of credit card receivables and net recovery of inventories         100.00%        
Letters of credit, outstanding         $ 7,900,000        
Remaining borrowing capacity under line of credit facility         $ 102,000,000        
Fixed charges coverage ratio         1.0        
Borrowings         $ 153,800,000        
Revolving loan commitment         $ 118,800,000 $ 119,100,000 $ 146,128,000    
Equipment Term Loan [Member]                  
Debt Instrument [Line Items]                  
Credit facility maximum borrowing capacity       $ 25,000,000          
Credit facility agreement expiration date       Feb. 28, 2018          
Term Loan [Member]                  
Debt Instrument [Line Items]                  
Fixed charges coverage ratio         1.0        
Weighted average interest rate on debt amounts outstanding         10.84%        
Covenant description         The Term Loan Agreement contains customary representations and warranties, affirmative and negative covenants including the retention of the existing minimum 1.0 to 1.0 consolidated fixed charge coverage ratio under the Credit Agreement, which limits borrowing availability if not met during periods where Revolving Excess Availability (as defined in the Term Loan Agreement) is less than the greater of $20.0 million or 10.0 percent of Combined Loan Cap (as defined in the Term Loan Agreement) for four consecutive business days, and events of default for a facility of this type.        
Percent of combined loan cap         10.00%        
Term Loan [Member] | Maximum [Member]                  
Debt Instrument [Line Items]                  
Remaining borrowing capacity under line of credit facility         $ 20,000,000        
Term Loan [Member] | Minimum [Member]                  
Debt Instrument [Line Items]                  
Value of leasehold interests in real property         $ 10,000,000        
Tranche A-1 Revolving Loan Commitment [Member]                  
Debt Instrument [Line Items]                  
Revolving loan commitment     $ 25,000,000            
Credit Agreement [Member]                  
Debt Instrument [Line Items]                  
Weighted average interest rate on debt amounts outstanding         4.12%        
Terms of credit agreement         Base Rate Loans bear interest equal to the highest of (a) the Federal Funds Rate plus 0.50 percent, (b) the adjusted LIBOR plus 1.00 percent, or (c) the Wells Fargo “prime rate,” plus the Applicable Margin (25 to 75 basis points).        
Wells Fargo Bank [Member] | Tranche A-1 Revolving Loans [Member]                  
Debt Instrument [Line Items]                  
Credit facility maximum borrowing capacity     25,000,000            
Wells Fargo Bank [Member] | Tranche A Revolving Loan [Member]                  
Debt Instrument [Line Items]                  
Credit facility maximum borrowing capacity $ 240,000,000   225,000,000            
Credit facility agreement expiration date         Sep. 18, 2023        
Debt issuance costs               $ 100,000  
Loan cap percentage 12.50%                
Number of consecutive business days 3                
Wells Fargo Bank [Member] | Tranche A Revolving Loan [Member] | Maximum [Member]                  
Debt Instrument [Line Items]                  
Loan cap percentage 10.00%                
Wells Fargo Bank [Member] | Credit Agreement [Member]                  
Debt Instrument [Line Items]                  
Credit facility maximum borrowing capacity       $ 250,000,000 $ 240,000,000        
Credit facility agreement expiration date       Feb. 28, 2020 Feb. 28, 2020        
Current borrowing capacity under line of credit facility         $ 15,200,000        
Sun Trust Bank [Member]                  
Debt Instrument [Line Items]                  
Credit facility agreement expiration date   Sep. 10, 2018     Apr. 01, 2018        
Fixed interest rate   3.58%     3.58%        
Sun Trust Bank [Member] | Promissory Note [Member]                  
Debt Instrument [Line Items]                  
Borrowings   $ 13,000,000     $ 13,700,000        
Gordon Brothers Finance Company, LLC [Member]                  
Debt Instrument [Line Items]                  
Debt issuance costs     900,000            
Gordon Brothers Finance Company, LLC [Member] | Term Loan [Member]                  
Debt Instrument [Line Items]                  
Credit facility maximum borrowing capacity $ 35,000,000   50,000,000            
Credit facility agreement expiration date         Sep. 18, 2023        
Debt issuance costs               $ 300,000  
Loan cap percentage 12.50%                
Number of consecutive business days 3                
Terms of credit agreement         the non-default interest rate applicable to the Term Loan under the Term Loan Agreement to a fluctuating rate of interest equal to three-month LIBOR (with a floor of 1.5%) plus 8.25% per annum        
Proceeds from term loan     49,100,000            
Increase in excess availability under the Credit Agreement     $ 25,000,000            
Gordon Brothers Finance Company, LLC [Member] | Term Loan [Member] | Maximum [Member]                  
Debt Instrument [Line Items]                  
Loan cap percentage 10.00%                
London Interbank Offered Rate (LIBOR) [Member] | Credit Agreement [Member]                  
Debt Instrument [Line Items]                  
Debt instrument interest rate         1.00%        
London Interbank Offered Rate (LIBOR) [Member] | Gordon Brothers Finance Company, LLC [Member] | Term Loan [Member]                  
Debt Instrument [Line Items]                  
Debt instrument interest rate 8.25%                
Floor rate 1.50%                
XML 48 R36.htm IDEA: XBRL DOCUMENT v3.19.2
Debt - Summary of Debt (Detail) - USD ($)
$ in Thousands
May 04, 2019
Feb. 02, 2019
May 05, 2018
Jan. 30, 2016
Debt Disclosure [Abstract]        
Revolving credit facility $ 118,800 $ 119,100 $ 146,128  
Term loan 35,000 35,000 50,000  
Promissory note     13,287  
Total debt 153,800 154,100 209,415  
Current portion     (159,415)  
Debt issuance costs (801) (847) (734) $ (400)
Long-term debt $ 152,999 $ 153,253 $ 49,266  
XML 49 R37.htm IDEA: XBRL DOCUMENT v3.19.2
Debt - Aggregate Maturities of Debt (Detail)
$ in Thousands
May 04, 2019
USD ($)
Debt Disclosure [Abstract]  
2020 $ 0
2021 0
2022 0
2023 153,800
2024 0
Thereafter 0
Total $ 153,800
XML 50 R38.htm IDEA: XBRL DOCUMENT v3.19.2
Leases - Additional Information (Detail)
$ in Millions
May 04, 2019
USD ($)
Operating Leased Assets [Line Items]  
Lease term 10 years
Capital Leases, Balance Sheet, Assets by Major Class, Net $ 2.0
Maximum [Member]  
Operating Leased Assets [Line Items]  
Length of lease extension 5 years
XML 51 R39.htm IDEA: XBRL DOCUMENT v3.19.2
Leases - Lease cost (Detail)
$ in Thousands
3 Months Ended
May 04, 2019
USD ($)
Finance lease cost  
Net lease cost $ 33,625
SG&A Expenses [Member]  
Operating lease cost 23,527 [1]
Finance lease cost  
Amortization of leased assets 152
Variable lease cost 9,930
Net Interest Expense [Member] [Member]  
Finance lease cost  
Interest on lease liabilities $ 16
[1] Includes lease costs for short-term leases, which are immaterial.
XML 52 R40.htm IDEA: XBRL DOCUMENT v3.19.2
Leases - Lessee, Lease, Liability, Maturity (Detail)
$ in Thousands
May 04, 2019
USD ($)
Operating Leases [Abstract]  
Remainder of 2019 $ 75,170
2020 94,868
2021 84,084
2022 68,574
2023 53,515
After 2023 105,493
Total lease payments 481,704
Less: Interest (69,458)
Operating lease, liability 412,246
Finance Leases [Abstract]  
Remainder of 2019 553
2020 574
2021 1
Total lease payments 1,128
Less: Interest (50)
Present value of lease liabilities 1,078
Remainder of 2019 75,723
2020 95,442
2021 84,085
2022 68,574
2023 53,515
After 2023 105,493
Total lease payments 482,832
Less: Interest (69,508)
Lease Liability $ 413,324
XML 53 R41.htm IDEA: XBRL DOCUMENT v3.19.2
Leases - Disclosure of lease term and weighted average discount rate (Detail)
May 04, 2019
Weighted-average remainder term (years):  
Operating leases 5 years 9 months 18 days
Finance leases 1 year 10 months 24 days
Weighted-average discount rate  
Operating leases 5.40%
Finance leases 5.70%
XML 54 R42.htm IDEA: XBRL DOCUMENT v3.19.2
Leases - Disclosure of cash flows relating to leases (Detail)
$ in Thousands
3 Months Ended
May 04, 2019
USD ($)
Cash paid for amounts included in the measurement of lease liabilities:  
Operating cash flows from operating leases $ 25,218
Operating cash flows from finance leases 16
Financing cash flows from finance leases $ 168
XML 55 R43.htm IDEA: XBRL DOCUMENT v3.19.2
Leases - Schedule of Future Minimum Rental Payments for Operating Leases (Detail)
$ in Thousands
May 04, 2019
USD ($)
Operating Leases  
2019 $ 101,139
2020 93,190
2021 82,324
2022 66,820
2023 50,697
After 2023 102,550
Total future minimum lease payments 496,720
Finance Leases  
2019 738
2020 574
2021 1
2022 0
2023 0
After 2023 0
Total future minimum lease payments 1,313
Amount representing interest (67)
Present value of minimum lease payments 1,246
Less: current portion (685)
Long-term capital lease obligations $ 561
XML 56 R44.htm IDEA: XBRL DOCUMENT v3.19.2
Commitments and Contingencies - Additional Information (Detail) - USD ($)
3 Months Ended
May 04, 2019
May 05, 2018
Commitments and Contingencies Disclosure [Abstract]    
Actual and anticipated legal settlements accrued $ 0 $ 0
XML 57 R45.htm IDEA: XBRL DOCUMENT v3.19.2
Income Taxes - Additional Information (Detail)
3 Months Ended
May 04, 2019
Income Tax Examination [Line Items]  
Effective tax rate 0.00%
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