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COVID-19 Impacts
6 Months Ended
Aug. 01, 2020
Extraordinary And Unusual Items [Abstract]  
COVID-19 Impacts

Note 3 – COVID-19 Impacts

 

Our operations are currently experiencing significant disruption associated with the outbreak of a novel strain of coronavirus (“COVID-19”).  On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic. The U.S. Government as well as the vast majority of states and local municipalities have taken unprecedented measures to control the spread of COVID-19 and to provide stimulus as a mitigating measure to deteriorating economic conditions and increasing unemployment.

The COVID-19 pandemic began significantly impacting our store operations, sales and costs beginning in the first quarter of fiscal 2020.  Impacts included the temporary closure of our brick-and-mortar stores effective March 19, 2020, reduced foot traffic and sales, deteriorating economic conditions for our customer base and some disruption to our global supply chain.  As a result, substantially all of our brick-and-mortar stores were closed for approximately 50% of the first quarter of fiscal 2020.  We reopened stores in accordance with applicable public health guidelines, and by the beginning of our second quarter, approximately 50% of our stores were reopened.  By early June of fiscal 2020, substantially all stores had reopened.  As a result of these temporary closures, our year-to-date net sales and gross profit significantly declined compared to fiscal 2019.  Our website and mobile app continued to process e-commerce orders and have been fully operational during the pandemic.  These orders were generally fulfilled at our store locations.  The COVID-19 pandemic will likely continue to impact our financial condition and results of operations for the foreseeable future.