(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices and zip code) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | |||||||||||||||
Large accelerated filer | ☐ | ☒ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
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. | o |
Oct 30, 2021 | Jan 30, 2021 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Inventories | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Goodwill | |||||||||||
Deferred tax assets | |||||||||||
Restricted cash | |||||||||||
Operating lease right-of-use assets | |||||||||||
Other assets | |||||||||||
$ | $ | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current portion of borrowings and finance lease obligations | $ | $ | |||||||||
Accounts payable | |||||||||||
Accrued expenses and other current liabilities | |||||||||||
Current portion of operating lease liabilities | |||||||||||
Total current liabilities | |||||||||||
Convertible senior notes, net | |||||||||||
Long-term debt and finance lease obligations | |||||||||||
Long-term operating lease liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Redeemable noncontrolling interests | |||||||||||
Commitments and contingencies (Note 13) | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock, | ( | ( | |||||||||
Guess?, Inc. stockholders’ equity | |||||||||||
Nonredeemable noncontrolling interests | |||||||||||
Total stockholders’ equity | |||||||||||
$ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Oct 30, 2021 | Oct 31, 2020 | Oct 30, 2021 | Oct 31, 2020 | ||||||||||||||||||||
Product sales | $ | $ | $ | $ | |||||||||||||||||||
Net royalties | |||||||||||||||||||||||
Net revenue | |||||||||||||||||||||||
Cost of product sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Asset impairment charges | |||||||||||||||||||||||
Net (gains) losses on lease modifications | ( | ( | |||||||||||||||||||||
Earnings (loss) from operations | ( | ||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Interest income | |||||||||||||||||||||||
Other expense, net | ( | ( | ( | ( | |||||||||||||||||||
Total other expense | ( | ( | ( | ( | |||||||||||||||||||
Earnings (loss) before income tax expense (benefit) | ( | ||||||||||||||||||||||
Income tax expense (benefit) | ( | ||||||||||||||||||||||
Net earnings (loss) | ( | ||||||||||||||||||||||
Net earnings (loss) attributable to noncontrolling interests | ( | ||||||||||||||||||||||
Net earnings (loss) attributable to Guess?, Inc. | $ | $ | $ | $ | ( | ||||||||||||||||||
Net earnings (loss) per common share attributable to common stockholders: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | ( | ||||||||||||||||||
Diluted | $ | $ | $ | $ | ( | ||||||||||||||||||
Weighted average common shares outstanding attributable to common stockholders: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Oct 30, 2021 | Oct 31, 2020 | Oct 30, 2021 | Oct 31, 2020 | ||||||||||||||||||||
Net earnings (loss) | $ | $ | $ | $ | ( | ||||||||||||||||||
Other comprehensive income (loss) (“OCI”): | |||||||||||||||||||||||
Foreign currency translation adjustment | |||||||||||||||||||||||
Gains (losses) arising during the period | ( | ( | ( | ||||||||||||||||||||
Derivative financial instruments designated as cash flow hedges | |||||||||||||||||||||||
Gains (losses) arising during the period | ( | ||||||||||||||||||||||
Less income tax effect | ( | ( | ( | ||||||||||||||||||||
Reclassification to net earnings (loss) for (gains) losses realized | ( | ( | |||||||||||||||||||||
Less income tax effect | ( | ( | |||||||||||||||||||||
Defined benefit plans | |||||||||||||||||||||||
Foreign currency and other adjustments | ( | ( | |||||||||||||||||||||
Less income tax effect | ( | ( | |||||||||||||||||||||
Net actuarial loss amortization | |||||||||||||||||||||||
Prior service credit amortization | ( | ( | ( | ( | |||||||||||||||||||
Less income tax effect | ( | ( | ( | ( | |||||||||||||||||||
Total comprehensive income (loss) | ( | ||||||||||||||||||||||
Less comprehensive income (loss) attributable to noncontrolling interests: | |||||||||||||||||||||||
Net earnings (loss) | ( | ||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | ( | ||||||||||||||||||||
Amounts attributable to noncontrolling interests | ( | ||||||||||||||||||||||
Comprehensive income (loss) attributable to Guess?, Inc. | $ | $ | $ | $ | ( | ||||||||||||||||||
Nine Months Ended | |||||||||||
Oct 30, 2021 | Oct 31, 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net earnings (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of debt discount | |||||||||||
Amortization of debt issuance costs | |||||||||||
Share-based compensation expense | |||||||||||
Forward contract (gains) losses | ( | ||||||||||
Deferred income taxes | ( | ||||||||||
Net loss from impairment and disposition of long-term assets | |||||||||||
Other items, net | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ||||||||||
Inventories | ( | ||||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Operating lease assets and liabilities, net | ( | ||||||||||
Accounts payable and accrued expenses | |||||||||||
Other long-term liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Proceeds from sale of business and long-term assets | |||||||||||
Net cash settlement of forward contracts | ( | ( | |||||||||
Purchases of investments | ( | ( | |||||||||
Other investing activities | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from borrowings | |||||||||||
Repayments on borrowings and finance lease obligations | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Noncontrolling interest capital distribution | ( | ||||||||||
Issuance of common stock, net of income tax withholdings on vesting of stock awards | ( | ||||||||||
Purchase of treasury stock | ( | ||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rates on cash, cash equivalents and restricted cash | ( | ||||||||||
Net change in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash at the beginning of the year | |||||||||||
Cash, cash equivalents and restricted cash at the end of the period | $ | $ | |||||||||
Supplemental cash flow data: | |||||||||||
Interest paid | $ | $ | |||||||||
Income taxes paid, net of refunds | $ | $ | |||||||||
Non-cash investing and financing activity: | |||||||||||
Assets acquired under finance lease obligations | $ | $ | |||||||||
Receivable and related adjustments from sale of retail locations | $ | $ | |||||||||
For the three and nine months ended October 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Guess?, Inc. Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Shares | Amount | Nonredeemable Noncontrolling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||
Balance at January 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of income tax of ($ | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock under stock compensation plans | ( | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock under Employee Stock Purchase Plan | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends, net of forfeitures on non-participating securities | — | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at May 1, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of income tax of ($ | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock under stock compensation plans | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock under Employee Stock Purchase Plan | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends, net of forfeitures on non-participating securities | — | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest capital distribution | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at July 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of income tax of ($ | — | — | — | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock under stock compensation plans | ( | — | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock under Employee Stock Purchase Plan | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends, net of forfeitures on non-participating securities | — | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interest redemption value adjustment | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Balance at October 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ |
For the three and nine months ended October 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Guess?, Inc. Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Shares | Amount | Nonredeemable Noncontrolling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||
Balance at February 1, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of income tax of ($ | — | — | — | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock under stock compensation plans | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock under Employee Stock Purchase Plan | ( | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends, net of forfeitures on non-participating securities | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at May 2, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of income tax of $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock under stock compensation plans | ( | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock under Employee Stock Purchase Plan | — | ( | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends, net of forfeitures on non-participating securities | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Share repurchases | ( | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at August 1, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of income tax of ($ | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock under stock compensation plans | ( | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock under Employee Stock Purchase Plan | — | ( | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends, net of forfeitures on non-participating securities | — | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at October 31, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ |
Oct 30, 2021 | Jan 30, 2021 | |||||||||||||
Assets | Balance Sheet Location | |||||||||||||
Operating | Operating lease right-of-use assets | $ | $ | |||||||||||
Property and equipment, net | ||||||||||||||
Total lease assets | $ | $ | ||||||||||||
Liabilities | Balance Sheet Location | |||||||||||||
Current: | ||||||||||||||
Operating | Current portion of operating lease liabilities | $ | $ | |||||||||||
Current portion of borrowings and finance lease obligations | ||||||||||||||
Noncurrent: | ||||||||||||||
Operating | Long-term operating lease liabilities | |||||||||||||
Long-term debt and finance lease obligations | ||||||||||||||
Total lease liabilities | $ | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
Income Statement Location | Oct 30, 2021 | Oct 31, 2020 | Oct 30, 2021 | Oct 31, 2020 | ||||||||||||||||||||||
Operating lease costs | Cost of product sales | $ | $ | $ | $ | |||||||||||||||||||||
Operating lease costs | Selling, general and administrative expenses | |||||||||||||||||||||||||
Operating lease costs1 | Net (gains) losses on lease modifications | ( | ( | |||||||||||||||||||||||
Finance lease costs | ||||||||||||||||||||||||||
Amortization of leased assets2 | Cost of product sales | |||||||||||||||||||||||||
Amortization of leased assets2 | Selling, general and administrative expenses | |||||||||||||||||||||||||
Interest on lease liabilities | Interest expense | |||||||||||||||||||||||||
Variable lease costs3 | Cost of product sales | |||||||||||||||||||||||||
Variable lease costs3 | Selling, general and administrative expenses | |||||||||||||||||||||||||
Short-term lease costs | Cost of product sales | |||||||||||||||||||||||||
Short-term lease costs | Selling, general and administrative expenses | |||||||||||||||||||||||||
Total lease costs | $ | $ | $ | $ |
Operating Leases | |||||||||||||||||||||||
Maturity of Lease Liabilities | Non-Related Parties | Related Parties | Finance Leases | Total | |||||||||||||||||||
20221 | $ | $ | $ | $ | |||||||||||||||||||
2023 | |||||||||||||||||||||||
2024 | |||||||||||||||||||||||
2025 | |||||||||||||||||||||||
2026 | |||||||||||||||||||||||
After 2026 | |||||||||||||||||||||||
Total lease payments | |||||||||||||||||||||||
Less: Interest | |||||||||||||||||||||||
Present value of lease liabilities | $ | $ | $ | $ |
Lease Term and Discount Rate | Oct 30, 2021 | ||||
Weighted-average remaining lease term | |||||
Operating leases | |||||
Finance leases | |||||
Weighted-average discount rate | |||||
Operating leases | |||||
Finance leases |
Nine Months Ended | |||||||||||
Supplemental Cash Flow Information | Oct 30, 2021 | Oct 31, 2020 | |||||||||
Cash paid for amounts included in the measurement of lease liabilities | |||||||||||
Operating cash flows from operating leases | $ | $ | |||||||||
New operating ROU assets obtained in exchange for lease liabilities | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Oct 30, 2021 | Oct 31, 2020 | Oct 30, 2021 | Oct 31, 2020 | ||||||||||||||||||||
Net earnings (loss) attributable to Guess?, Inc. | $ | $ | $ | $ | ( | ||||||||||||||||||
Less net earnings attributable to nonvested restricted stockholders | |||||||||||||||||||||||
Net earnings (loss) attributable to common stockholders | $ | $ | $ | $ | ( | ||||||||||||||||||
Weighted average common shares used in basic computations | |||||||||||||||||||||||
Effect of dilutive securities: Stock options, convertible senior notes and restricted stock units1 | |||||||||||||||||||||||
Weighted average common shares used in diluted computations | |||||||||||||||||||||||
Net earnings (loss) per common share attributable to common stockholders: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | ( | ||||||||||||||||||
Diluted | $ | $ | $ | $ | ( |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Oct 30, 2021 | Oct 31, 2020 | Oct 30, 2021 | Oct 31, 2020 | ||||||||||||||||||||
Cash dividend declared per share | $ | $ | $ | $ |
Foreign Currency Translation Adjustment | Derivative Financial Instruments Designated as Cash Flow Hedges | Defined Benefit Plans | Total | ||||||||||||||||||||
Three Months Ended Oct 30, 2021 | |||||||||||||||||||||||
Balance at July 31, 2021 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Gains (losses) arising during the period | ( | ( | |||||||||||||||||||||
Reclassification to net earnings for losses realized | |||||||||||||||||||||||
Net other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Balance at October 30, 2021 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Nine Months Ended Oct 30, 2021 | |||||||||||||||||||||||
Balance at January 30, 2021 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Gains (losses) arising during the period | ( | ( | |||||||||||||||||||||
Reclassification to net earnings for losses realized | |||||||||||||||||||||||
Net other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Balance at October 30, 2021 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Three Months Ended Oct 31, 2020 | |||||||||||||||||||||||
Balance at August 1, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Gains (losses) arising during the period | ( | ( | ( | ||||||||||||||||||||
Reclassification to net earnings for (gains) losses realized | ( | ( | |||||||||||||||||||||
Net other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||
Balance at October 31, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Nine Months Ended Oct 31, 2020 | |||||||||||||||||||||||
Balance at February 1, 2020 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Gains (losses) arising during the period | ( | ( | |||||||||||||||||||||
Reclassification to net loss for (gains) losses realized | ( | ( | |||||||||||||||||||||
Net other comprehensive income (loss) | ( | ||||||||||||||||||||||
Balance at October 31, 2020 | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended | Nine Months Ended | Location of (Gain) Loss Reclassified from Accumulated OCI into Earnings (Loss) | |||||||||||||||||||||||||||
Oct 30, 2021 | Oct 31, 2020 | Oct 30, 2021 | Oct 31, 2020 | ||||||||||||||||||||||||||
Derivative financial instruments designated as cash flow hedges: | |||||||||||||||||||||||||||||
Foreign exchange currency contracts | $ | $ | ( | $ | $ | ( | Cost of product sales | ||||||||||||||||||||||
Interest rate swap | Interest expense | ||||||||||||||||||||||||||||
Less income tax effect | ( | ( | Income tax expense (benefit) | ||||||||||||||||||||||||||
( | ( | ||||||||||||||||||||||||||||
Defined benefit plans: | |||||||||||||||||||||||||||||
Net actuarial loss amortization | Other income (expense) | ||||||||||||||||||||||||||||
Prior service credit amortization | ( | ( | ( | ( | Other income (expense) | ||||||||||||||||||||||||
Less income tax effect | ( | ( | ( | ( | Income tax expense (benefit) | ||||||||||||||||||||||||
Total reclassifications during the period | $ | $ | ( | $ | $ | ( |
Oct 30, 2021 | Jan 30, 2021 | ||||||||||
Trade | $ | $ | |||||||||
Royalty | |||||||||||
Other | |||||||||||
Less allowances | |||||||||||
$ | $ |
Oct 30, 2021 | Jan 30, 2021 | ||||||||||
Raw materials | $ | $ | |||||||||
Work in progress | |||||||||||
Finished goods | |||||||||||
$ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Oct 30, 2021 | Oct 31, 2020 | Oct 30, 2021 | Oct 31, 2020 | ||||||||||||||||||||
Net revenue: | |||||||||||||||||||||||
Americas Retail | $ | $ | $ | $ | |||||||||||||||||||
Americas Wholesale | |||||||||||||||||||||||
Europe | |||||||||||||||||||||||
Asia | |||||||||||||||||||||||
Licensing | |||||||||||||||||||||||
Total net revenue | $ | $ | $ | $ | |||||||||||||||||||
Earnings (loss) from operations: | |||||||||||||||||||||||
Americas Retail | $ | $ | $ | $ | ( | ||||||||||||||||||
Americas Wholesale | |||||||||||||||||||||||
Europe | |||||||||||||||||||||||
Asia | ( | ( | ( | ||||||||||||||||||||
Licensing | |||||||||||||||||||||||
Total segment earnings from operations | |||||||||||||||||||||||
Corporate overhead | ( | ( | ( | ( | |||||||||||||||||||
Asset impairment charges1 | ( | ( | ( | ( | |||||||||||||||||||
Net gains (losses) on lease modifications2 | ( | ( | |||||||||||||||||||||
Total earnings (loss) from operations | $ | $ | $ | $ | ( | ||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Oct 30, 2021 | Oct 31, 2020 | Oct 30, 2021 | Oct 31, 2020 | ||||||||||||||||||||
Net revenue: | |||||||||||||||||||||||
U.S. | $ | $ | $ | $ | |||||||||||||||||||
Italy | |||||||||||||||||||||||
Germany | |||||||||||||||||||||||
Canada | |||||||||||||||||||||||
Spain | |||||||||||||||||||||||
South Korea | |||||||||||||||||||||||
Other foreign countries | |||||||||||||||||||||||
Total product sales | |||||||||||||||||||||||
Net royalties | |||||||||||||||||||||||
Net revenue | $ | $ | $ | $ |
Oct 30, 2021 | Jan 30, 2021 | ||||||||||
Term loans | $ | $ | |||||||||
Finance lease obligations | |||||||||||
Mortgage debt | |||||||||||
Borrowings under credit facilities | |||||||||||
Other | |||||||||||
Less current installments | |||||||||||
Long-term debt and finance lease obligations | $ | $ |
Oct 30, 2021 | Jan 30, 2021 | ||||||||||
Liability component: | |||||||||||
Principal | $ | $ | |||||||||
Unamortized debt discount | ( | ( | |||||||||
Unamortized issuance costs | ( | ( | |||||||||
Net carrying amount | $ | $ | |||||||||
Equity component, net1 | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Oct 30, 2021 | Oct 31, 2020 | Oct 30, 2021 | Oct 31, 2020 | ||||||||||||||||||||
Stock options | $ | $ | $ | $ | |||||||||||||||||||
Stock awards/units | |||||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||||
Total share-based compensation expense | $ | $ | $ | $ |
Number of Units | Weighted Average Grant Date Fair Value | ||||||||||
Nonvested at January 30, 2021 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Nonvested at October 30, 2021 | $ |
Number of Units | Weighted Average Grant Date Fair Value | ||||||||||
Nonvested at January 30, 2021 | $ | ||||||||||
Granted1 | |||||||||||
Vested1 | ( | ||||||||||
Nonvested at October 30, 2021 | $ |
Nine Months Ended | |||||||||||
Oct 30, 2021 | Oct 31, 2020 | ||||||||||
Beginning balance | $ | $ | |||||||||
Redeemable noncontrolling interest redemption value adjustment | |||||||||||
Foreign currency translation adjustment | ( | ||||||||||
Ending balance | $ | $ |
SERP | Foreign Pension Plans | Total | |||||||||||||||
Three Months Ended Oct 30, 2021 | |||||||||||||||||
Service cost | $ | $ | $ | ||||||||||||||
Interest cost | |||||||||||||||||
Expected return on plan assets | ( | ( | |||||||||||||||
Net amortization of unrecognized prior service credit | ( | ( | |||||||||||||||
Net amortization of actuarial losses | |||||||||||||||||
Net periodic defined benefit pension cost | $ | $ | $ | ||||||||||||||
Nine Months Ended Oct 30, 2021 | |||||||||||||||||
Service cost | $ | $ | $ | ||||||||||||||
Interest cost | |||||||||||||||||
Expected return on plan assets | ( | ( | |||||||||||||||
Net amortization of unrecognized prior service credit | ( | ( | |||||||||||||||
Net amortization of actuarial losses | |||||||||||||||||
Net periodic defined benefit pension cost | $ | $ | $ |
Three Months Ended Oct 31, 2020 | |||||||||||||||||
Service cost | $ | $ | $ | ||||||||||||||
Interest cost | |||||||||||||||||
Expected return on plan assets | ( | ( | |||||||||||||||
Net amortization of unrecognized prior service credit | ( | ( | |||||||||||||||
Net amortization of actuarial losses | |||||||||||||||||
Net periodic defined benefit pension cost | $ | $ | $ | ||||||||||||||
Nine Months Ended Oct 31, 2020 | |||||||||||||||||
Service cost | $ | $ | $ | ||||||||||||||
Interest cost | |||||||||||||||||
Expected return on plan assets | ( | ( | |||||||||||||||
Net amortization of unrecognized prior service credit | ( | ( | |||||||||||||||
Net amortization of actuarial losses | |||||||||||||||||
Net periodic defined benefit pension cost | $ | $ | $ |
Fair Value Measurements | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||||||
at Oct 30, 2021 | at Jan 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange currency contracts | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange currency contracts | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Interest rate swap | ||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation obligations | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
Fair Value at Oct 30, 2021 | Fair Value at Jan 30, 2021 | Derivative Balance Sheet Location | |||||||||||||||
ASSETS: | |||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||
Cash flow hedges: | |||||||||||||||||
Foreign exchange currency contracts | $ | $ | Other current assets/ Other assets | ||||||||||||||
Total derivatives designated as hedging instruments | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Foreign exchange currency contracts | Other current assets | ||||||||||||||||
Total | $ | $ | |||||||||||||||
LIABILITIES: | |||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||
Cash flow hedges: | |||||||||||||||||
Foreign exchange currency contracts | $ | $ | Accrued expenses/ Other long-term liabilities | ||||||||||||||
Interest rate swap | Other long-term liabilities | ||||||||||||||||
Total derivatives designated as hedging instruments | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Foreign exchange currency contracts | Accrued expenses | ||||||||||||||||
Total | $ | $ |
Gains (Losses) Recognized in OCI | Location of Gains (Losses) Reclassified from Accumulated OCI into Earnings (Loss) | Gains (Losses) Reclassified from Accumulated OCI into Earnings (Loss) | |||||||||||||||||||||||||||
Oct 30, 2021 | Oct 31, 2020 | Oct 30, 2021 | Oct 31, 2020 | ||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||||||||||||||
Foreign exchange currency contracts | $ | $ | Cost of product sales | $ | ( | $ | |||||||||||||||||||||||
Interest rate swap | Interest expense | ( | ( |
Nine Months Ended | |||||||||||||||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||||||||||||||
Foreign exchange currency contracts | $ | $ | ( | Cost of product sales | $ | ( | $ | ||||||||||||||||||||||
Interest rate swap | ( | Interest expense | ( | ( |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Oct 30, 2021 | Oct 31, 2020 | Oct 30, 2021 | Oct 31, 2020 | ||||||||||||||||||||
Beginning balance gain (loss) | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||
Net gains (losses) from changes in cash flow hedges | ( | ||||||||||||||||||||||
Net (gains) losses reclassified into earnings (loss) | ( | ( | |||||||||||||||||||||
Ending balance gain (loss) | $ | $ | ( | $ | $ | ( |
Location of Gain (Loss) Recognized in Earnings (Loss) | Gain (Loss) Recognized in Earnings (Loss) | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
Oct 30, 2021 | Oct 31, 2020 | Oct 30, 2021 | Oct 31, 2020 | ||||||||||||||||||||||||||
Foreign exchange currency contracts | Other income (expense) | $ | $ | $ | $ | ( | |||||||||||||||||||||||
Stores | Concessions | |||||||||||||||||||||||||||||||||||||
Region | Total | Directly-Operated | Partner Operated | Total | Directly-Operated | Partner Operated | ||||||||||||||||||||||||||||||||
United States | 244 | 243 | 1 | 1 | — | 1 | ||||||||||||||||||||||||||||||||
Canada | 74 | 74 | — | — | — | — | ||||||||||||||||||||||||||||||||
Central and South America | 105 | 70 | 35 | 29 | 29 | — | ||||||||||||||||||||||||||||||||
Total Americas | 423 | 387 | 36 | 30 | 29 | 1 | ||||||||||||||||||||||||||||||||
Europe and the Middle East | 760 | 540 | 220 | 46 | 46 | — | ||||||||||||||||||||||||||||||||
Asia and the Pacific | 427 | 125 | 302 | 268 | 103 | 165 | ||||||||||||||||||||||||||||||||
Total | 1,610 | 1,052 | 558 | 344 | 178 | 166 |
Three Months Ended | ||||||||||||||||||||||||||||||||
Oct 30, 2021 | Oct 31, 2020 | |||||||||||||||||||||||||||||||
$ | % | $ | % | $ change | % change | |||||||||||||||||||||||||||
Net revenue | $ | 643,070 | 100.0 | % | $ | 569,284 | 100.0 | % | $ | 73,786 | 13.0 | % | ||||||||||||||||||||
Cost of product sales | 349,466 | 54.3 | % | 329,764 | 57.9 | % | 19,702 | 6.0 | % | |||||||||||||||||||||||
Gross profit | 293,604 | 45.7 | % | 239,520 | 42.1 | % | 54,084 | 22.6 | % | |||||||||||||||||||||||
Selling, general and administrative expenses | 223,775 | 34.8 | % | 184,739 | 32.5 | % | 39,036 | 21.1 | % | |||||||||||||||||||||||
Asset impairment charges | 1,152 | 0.2 | % | 10,335 | 1.8 | % | (9,183) | (88.9 | %) | |||||||||||||||||||||||
Net (gains) losses on lease modifications | 3,006 | 0.5 | % | (21) | (0.0 | %) | 3,027 | (14,414.3 | %) | |||||||||||||||||||||||
Earnings from operations | 65,671 | 10.2 | % | 44,467 | 7.8 | % | 21,204 | 47.7 | % | |||||||||||||||||||||||
Interest expense, net | (5,063) | (0.8 | %) | (5,247) | (0.9 | %) | 184 | (3.5 | %) | |||||||||||||||||||||||
Other expense, net | (7,800) | (1.2 | %) | (6,521) | (1.2 | %) | (1,279) | 19.6 | % | |||||||||||||||||||||||
Earnings before income tax expense | 52,808 | 8.2 | % | 32,699 | 5.7 | % | 20,109 | 61.5 | % | |||||||||||||||||||||||
Income tax expense | 20,441 | 3.2 | % | 5,145 | 0.9 | % | 15,296 | 297.3 | % | |||||||||||||||||||||||
Net earnings | 32,367 | 5.0 | % | 27,554 | 4.8 | % | 4,813 | 17.5 | % | |||||||||||||||||||||||
Net earnings attributable to noncontrolling interests | 2,487 | 0.4 | % | 1,178 | 0.2 | % | 1,309 | 111.1 | % | |||||||||||||||||||||||
Net earnings attributable to Guess?, Inc. | $ | 29,880 | 4.6 | % | $ | 26,376 | 4.6 | % | 3,504 | 13.3 | % | |||||||||||||||||||||
Net earnings per common share attributable to common stockholders: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.46 | $ | 0.41 | $ | 0.05 | ||||||||||||||||||||||||||
Diluted | $ | 0.45 | $ | 0.41 | $ | 0.04 | ||||||||||||||||||||||||||
Effective income tax rate | 38.7 | % | 15.7 | % |
Three Months Ended | |||||||||||||||||||||||
Oct 30, 2021 | Oct 31, 2020 | $ change | % change | ||||||||||||||||||||
Net revenue: | |||||||||||||||||||||||
Americas Retail | $ | 169,617 | $ | 130,328 | $ | 39,289 | 30.1 | % | |||||||||||||||
Americas Wholesale | 58,999 | 35,971 | 23,028 | 64.0 | % | ||||||||||||||||||
Europe | 330,736 | 321,574 | 9,162 | 2.8 | % | ||||||||||||||||||
Asia | 57,137 | 61,978 | (4,841) | (7.8 | %) | ||||||||||||||||||
Licensing | 26,581 | 19,433 | 7,148 | 36.8 | % | ||||||||||||||||||
Total net revenue | $ | 643,070 | $ | 569,284 | 73,786 | 13.0 | % | ||||||||||||||||
Earnings (loss) from operations: | |||||||||||||||||||||||
Americas Retail | $ | 24,070 | $ | 473 | 23,597 | 4,988.8 | % | ||||||||||||||||
Americas Wholesale | 17,316 | 8,247 | 9,069 | 110.0 | % | ||||||||||||||||||
Europe | 44,509 | 51,476 | (6,967) | (13.5 | %) | ||||||||||||||||||
Asia | (2,399) | 1,415 | (3,814) | (269.5 | %) | ||||||||||||||||||
Licensing | 24,402 | 18,228 | 6,174 | 33.9 | % | ||||||||||||||||||
Total segment earnings from operations | 107,898 | 79,839 | 28,059 | 35.1 | % | ||||||||||||||||||
Corporate overhead | (38,069) | (25,058) | (13,011) | 51.9 | % | ||||||||||||||||||
Asset impairment charges | (1,152) | (10,335) | 9,183 | (88.8 | %) | ||||||||||||||||||
Net gains (losses) on lease modifications | (3,006) | 21 | (3,027) | (14,414.3 | %) | ||||||||||||||||||
Total earnings from operations | $ | 65,671 | $ | 44,467 | 21,204 | 47.7 | % | ||||||||||||||||
Operating margins: | |||||||||||||||||||||||
Americas Retail | 14.2 | % | 0.4 | % | |||||||||||||||||||
Americas Wholesale | 29.3 | % | 22.9 | % | |||||||||||||||||||
Europe | 13.5 | % | 16.0 | % | |||||||||||||||||||
Asia | (4.2 | %) | 2.3 | % | |||||||||||||||||||
Licensing | 91.8 | % | 93.8 | % | |||||||||||||||||||
Total Company | 10.2 | % | 7.8 | % |
Nine Months Ended | ||||||||||||||||||||||||||||||||
Oct 30, 2021 | Oct 31, 2020 | |||||||||||||||||||||||||||||||
$ | % | $ | % | $ change | % change | |||||||||||||||||||||||||||
Net revenue | $ | 1,791,696 | 100.0 | % | $ | 1,228,074 | 100.0 | % | $ | 563,622 | 45.9 | % | ||||||||||||||||||||
Cost of product sales | 992,448 | 55.4 | % | 807,297 | 65.7 | % | 185,151 | 22.9 | % | |||||||||||||||||||||||
Gross profit | 799,248 | 44.6 | % | 420,777 | 34.3 | % | 378,471 | 89.9 | % | |||||||||||||||||||||||
Selling, general and administrative expenses | 616,076 | 34.4 | % | 478,320 | 39.0 | % | 137,756 | 28.8 | % | |||||||||||||||||||||||
Asset impairment charges | 3,094 | 0.2 | % | 75,276 | 6.1 | % | (72,182) | (95.9 | %) | |||||||||||||||||||||||
Net (gains) losses on lease modifications | 441 | 0.0 | % | (450) | (0.0 | %) | 891 | (198.0 | %) | |||||||||||||||||||||||
Earnings (loss) from operations | 179,637 | 10.0 | % | (132,369) | (10.8 | %) | 312,006 | (235.7 | %) | |||||||||||||||||||||||
Interest expense, net | (16,163) | (0.9 | %) | (15,604) | (1.3 | %) | (559) | 3.6 | % | |||||||||||||||||||||||
Other expense, net | (11,502) | (0.6 | %) | (20,553) | (1.6 | %) | 9,051 | (44.0 | %) | |||||||||||||||||||||||
Earnings (loss) before income tax expense (benefit) | 151,972 | 8.5 | % | (168,526) | (13.7 | %) | 320,498 | (190.2 | %) | |||||||||||||||||||||||
Income tax expense (benefit) | 43,588 | 2.4 | % | (14,850) | (1.2 | %) | 58,438 | (393.5 | %) | |||||||||||||||||||||||
Net earnings (loss) | 108,384 | 6.1 | % | (153,676) | (12.5 | %) | 262,060 | (170.5 | %) | |||||||||||||||||||||||
Net earnings (loss) attributable to noncontrolling interests | 5,436 | 0.3 | % | (2,028) | (0.2 | %) | 7,464 | (368.0 | %) | |||||||||||||||||||||||
Net earnings (loss) attributable to Guess?, Inc. | $ | 102,948 | 5.8 | % | $ | (151,648) | (12.3 | %) | 254,596 | (167.9 | %) | |||||||||||||||||||||
Net earnings (loss) per common share attributable to common stockholders: | ||||||||||||||||||||||||||||||||
Basic | $ | 1.58 | $ | (2.35) | $ | 3.93 | ||||||||||||||||||||||||||
Diluted | $ | 1.55 | $ | (2.35) | $ | 3.90 | ||||||||||||||||||||||||||
Effective income tax rate | 28.7 | % | 8.8 | % |
Nine Months Ended | |||||||||||||||||||||||
Oct 30, 2021 | Oct 31, 2020 | $ change | % change | ||||||||||||||||||||
Net revenue: | |||||||||||||||||||||||
Americas Retail | $ | 511,449 | $ | 314,977 | $ | 196,472 | 62.4 | % | |||||||||||||||
Americas Wholesale | 154,287 | 82,131 | 72,156 | 87.9 | % | ||||||||||||||||||
Europe | 895,311 | 633,898 | 261,413 | 41.2 | % | ||||||||||||||||||
Asia | 160,610 | 152,554 | 8,056 | 5.3 | % | ||||||||||||||||||
Licensing | 70,039 | 44,514 | 25,525 | 57.3 | % | ||||||||||||||||||
Total net revenue | $ | 1,791,696 | $ | 1,228,074 | 563,622 | 45.9 | % | ||||||||||||||||
Earnings (loss) from operations: | |||||||||||||||||||||||
Americas Retail | $ | 82,260 | $ | (40,904) | 123,164 | (301.1 | %) | ||||||||||||||||
Americas Wholesale | 41,815 | 11,559 | 30,256 | 261.8 | % | ||||||||||||||||||
Europe | 100,124 | 27,865 | 72,259 | 259.3 | % | ||||||||||||||||||
Asia | (9,054) | (24,729) | 15,675 | (63.4 | %) | ||||||||||||||||||
Licensing | 63,987 | 39,833 | 24,154 | 60.6 | % | ||||||||||||||||||
Total segment earnings from operations | 279,132 | 13,624 | 265,508 | 1,948.8 | % | ||||||||||||||||||
Corporate overhead | (95,960) | (71,167) | (24,793) | 34.8 | % | ||||||||||||||||||
Asset impairment charges | (3,094) | (75,276) | 72,182 | (95.9 | %) | ||||||||||||||||||
Net gains (losses) on lease modifications | (441) | 450 | (891) | (198.0 | %) | ||||||||||||||||||
Total earnings (loss) from operations | $ | 179,637 | $ | (132,369) | 312,006 | (235.7 | %) | ||||||||||||||||
Operating margins: | |||||||||||||||||||||||
Americas Retail | 16.1 | % | (13.0 | %) | |||||||||||||||||||
Americas Wholesale | 27.1 | % | 14.1 | % | |||||||||||||||||||
Europe | 11.2 | % | 4.4 | % | |||||||||||||||||||
Asia | (5.6 | %) | (16.2 | %) | |||||||||||||||||||
Licensing | 91.4 | % | 89.5 | % | |||||||||||||||||||
Total Company | 10.0 | % | (10.8 | %) |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Oct 30, 2021 | Oct 31, 2020 | Oct 30, 2021 | Oct 31, 2020 | ||||||||||||||||||||
Reported GAAP net earnings (loss) attributable to Guess?, Inc. | $ | 29,880 | $ | 26,376 | $ | 102,948 | $ | (151,648) | |||||||||||||||
Certain professional service and legal fees and related (credits) costs1 | 550 | (195) | 1,737 | (56) | |||||||||||||||||||
Separation charges2 | — | 703 | — | 3,383 | |||||||||||||||||||
Asset impairment charges3 | 1,152 | 10,335 | 3,094 | 75,276 | |||||||||||||||||||
Net (gains) losses on lease modifications4 | 3,006 | (21) | 441 | (450) | |||||||||||||||||||
Amortization of debt discount5 | 2,782 | 2,599 | 8,344 | 7,796 | |||||||||||||||||||
Discrete tax adjustments6 | 5,912 | 635 | 6,140 | 805 | |||||||||||||||||||
Income tax impact from adjustments7 | (1,729) | (3,069) | (3,200) | (17,295) | |||||||||||||||||||
Total adjustments affecting net earnings (loss) attributable to Guess?, Inc. | 11,673 | 10,987 | 16,556 | 69,459 | |||||||||||||||||||
Adjusted net earnings (loss) attributable to Guess?, Inc. | $ | 41,553 | $ | 37,363 | $ | 119,504 | $ | (82,189) | |||||||||||||||
Net earnings (loss) per common share attributable to common stockholders: | |||||||||||||||||||||||
GAAP diluted | $ | 0.45 | $ | 0.41 | $ | 1.55 | $ | (2.35) | |||||||||||||||
Adjusted diluted | $ | 0.62 | $ | 0.58 | $ | 1.79 | $ | (1.27) |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs | |||||||||||||||||||
August 1, 2021 to August 28, 2021 | |||||||||||||||||||||||
Repurchase program1 | — | — | — | $ | 200,000,000 | ||||||||||||||||||
Employee transactions2 | — | — | — | ||||||||||||||||||||
August 29, 2021 to October 2, 2021 | |||||||||||||||||||||||
Repurchase program1 | — | — | — | $ | 200,000,000 | ||||||||||||||||||
Employee transactions2 | 928 | $ | 23.33 | — | |||||||||||||||||||
October 3, 2021 to October 30, 2021 | |||||||||||||||||||||||
Repurchase program1 | — | — | — | $ | 200,000,000 | ||||||||||||||||||
Employee transactions2 | — | — | — | ||||||||||||||||||||
Total | |||||||||||||||||||||||
Repurchase program1 | — | — | — | ||||||||||||||||||||
Employee transactions2 | 928 | $ | 23.33 | — |
Exhibit Number | Description | |||||||
††32.1. | ||||||||
††32.2. | ||||||||
†101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
†101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
†101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
†101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
†101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||||
†101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
†104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Management Contract or Compensatory Plan | ||||
† | Filed herewith | ||||
†† | Furnished herewith |
Guess?, Inc. | |||||||||||
Date: | December 3, 2021 | By: | /s/ CARLOS ALBERINI | ||||||||
Carlos Alberini | |||||||||||
Chief Executive Officer | |||||||||||
Date: | December 3, 2021 | By: | /s/ KATHRYN ANDERSON | ||||||||
Kathryn Anderson | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
Exhibit 10.1 |
Date: | December 3, 2021 | By: | /s/ CARLOS ALBERINI | ||||||||
Carlos Alberini Chief Executive Officer |
Date: | December 3, 2021 | By: | /s/ KATHRYN ANDERSON | ||||||||
Kathryn Anderson Chief Financial Officer |
Date: | December 3, 2021 | By: | /s/ CARLOS ALBERINI | ||||||||
Carlos Alberini Chief Executive Officer |
Date: | December 3, 2021 | By: | /s/ KATHRYN ANDERSON | ||||||||
Kathryn Anderson Chief Financial Officer |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Oct. 30, 2021 |
Jan. 30, 2021 |
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Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, issued (in shares) | 142,788,502 | 142,793,679 |
Common stock, outstanding (in shares) | 64,974,647 | 64,230,162 |
Treasury stock (in shares) | 77,813,855 | 78,563,517 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Oct. 30, 2021 |
Oct. 31, 2020 |
Oct. 30, 2021 |
Oct. 31, 2020 |
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Net revenue | $ 643,070 | $ 569,284 | $ 1,791,696 | $ 1,228,074 |
Cost of product sales | 349,466 | 329,764 | 992,448 | 807,297 |
Gross profit | 293,604 | 239,520 | 799,248 | 420,777 |
Selling, general and administrative expenses | 223,775 | 184,739 | 616,076 | 478,320 |
Asset impairment charges | 1,152 | 10,335 | 3,094 | 75,276 |
Net (gains) losses on lease modifications | 3,006 | (21) | 441 | (450) |
Earnings (loss) from operations | 65,671 | 44,467 | 179,637 | (132,369) |
Other income (expense): | ||||
Interest expense | (5,550) | (5,809) | (17,485) | (17,212) |
Interest income | 487 | 562 | 1,322 | 1,608 |
Other expense, net | (7,800) | (6,521) | (11,502) | (20,553) |
Total other expense | (12,863) | (11,768) | (27,665) | (36,157) |
Earnings (loss) before income tax expense (benefit) | 52,808 | 32,699 | 151,972 | (168,526) |
Income tax expense (benefit) | 20,441 | 5,145 | 43,588 | (14,850) |
Net earnings (loss) | 32,367 | 27,554 | 108,384 | (153,676) |
Net earnings (loss) attributable to noncontrolling interests | 2,487 | 1,178 | 5,436 | (2,028) |
Net earnings (loss) attributable to Guess?, Inc. | $ 29,880 | $ 26,376 | $ 102,948 | $ (151,648) |
Net earnings (loss) per common share attributable to common stockholders: | ||||
Basic (in dollars per share) | $ 0.46 | $ 0.41 | $ 1.58 | $ (2.35) |
Diluted (in dollars per share) | $ 0.45 | $ 0.41 | $ 1.55 | $ (2.35) |
Weighted average common shares outstanding attributable to common stockholders: | ||||
Basic (in shares) | 64,373 | 62,789 | 64,248 | 64,561 |
Diluted (in shares) | 65,852 | 63,579 | 65,893 | 64,561 |
Product sales | ||||
Net revenue | $ 616,489 | $ 549,851 | $ 1,721,657 | $ 1,183,560 |
Net royalties | ||||
Net revenue | $ 26,581 | $ 19,433 | $ 70,039 | $ 44,514 |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |||||
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Oct. 30, 2021 |
Jul. 31, 2021 |
May 01, 2021 |
Oct. 31, 2020 |
Aug. 01, 2020 |
May 02, 2020 |
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Statement of Stockholders' Equity [Abstract] | ||||||
Other comprehensive income (loss), tax expense (benefit) | $ 547 | $ (403) | $ (190) | $ (2) | $ 1,164 | $ (147) |
Basis of Presentation |
9 Months Ended |
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Oct. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Description of the Business Guess?, Inc. (the “Company” or “GUESS?”) designs, markets, distributes and licenses a leading lifestyle collection of contemporary apparel and accessories for men, women and children that reflect the American lifestyle and European fashion sensibilities. The Company’s designs are sold in GUESS? owned stores, to a network of wholesale accounts that includes better department stores, selected specialty retailers and upscale boutiques and through the Internet. GUESS? branded products, some of which are produced under license, are also sold internationally through a series of retail store licensees and wholesale distributors. Interim Financial Statements In the opinion of management, the accompanying unaudited condensed consolidated financial statements of the Company contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the condensed consolidated balance sheets as of October 30, 2021 and January 30, 2021, the condensed consolidated statements of income (loss), comprehensive income (loss), cash flows and stockholders’ equity for the three and nine months ended October 30, 2021 and October 31, 2020. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and the instructions to Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, they have been condensed and do not include all of the information and footnotes required by GAAP for complete financial statements. The results of operations and cash flows for the three and nine months ended October 30, 2021 are not necessarily indicative of the results of operations to be expected for the full fiscal year. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended January 30, 2021. Fiscal Periods The three and nine months ended October 30, 2021 had the same number of days as the three and nine months ended October 31, 2020. All references herein to “fiscal 2022,” “fiscal 2021” and “fiscal 2020” represent the results of the 52-week fiscal years ending January 29, 2022, January 30, 2021 and February 1, 2020, respectively. COVID-19 Business Update The coronavirus (“COVID-19”) pandemic is continuing to negatively impact the Company’s businesses. Although the Company achieved slightly higher net revenue during the third quarter of fiscal 2022 compared to the third quarter of fiscal 2020, the Company remained challenged by lower traffic and capacity restrictions. In addition, while the Company began the third quarter of fiscal 2022 with almost all its directly operated stores open for business, the Company started to incur a new round of government-mandated temporary store closures toward the end of the quarter. This resulted in the closure of a limited number of its directly operated stores as of October 30, 2021, mostly in Europe, the impact of which was minimal to its third quarter results. The COVID-19 crisis has also contributed to disruptions in the overall global supply chain, leading to industry-wide product delays and higher freight costs. The Company has been working actively to mitigate these headwinds to the extent possible through a number of global supply chain initiatives. In light of the fluid nature of the pandemic, the Company continues to carefully monitor global and regional developments, such as the recent spread of the Omicron variant, and respond appropriately. The Company also continues to strategically manage expenses in order to protect profitability and to mitigate, to the extent possible, the effect of the supply chain disruptions. Summary of Significant Accounting Policies The accounting policies of the Company are set forth in further detail in Note 1 to the Company's Consolidated Financial Statements contained in the Company’s fiscal 2021 Annual Report on Form 10-K. The Company includes herein certain updates to those policies. Reclassifications The Company has made certain reclassifications to prior period amounts to conform to the current period presentation within the accompanying condensed consolidated financial statements and notes to the condensed consolidated financial statements. Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosed in the accompanying notes. Significant areas requiring the use of management estimates relate to the allowances for doubtful accounts, sales return and markdown allowances, gift card and loyalty accruals, valuation of inventories, share-based compensation, income taxes, recoverability of deferred taxes, unrecognized tax benefits, the useful life of assets for depreciation and amortization, evaluation of asset impairment (including goodwill and long-lived assets, such as property and equipment and operating lease right-of-use (“ROU”) assets), pension obligations, workers’ compensation and medical self-insurance expense and accruals, litigation reserves and restructuring expense and accruals. Actual results could differ from those estimates. Revisions in estimates could materially impact the results of operations and financial position. The COVID-19 pandemic has materially impacted the Company’s results during the three and nine months ended October 30, 2021 and October 31, 2020. The Company’s operations could continue to be impacted in ways the Company is not able to predict today due to the evolving situation. While the Company believes it has made reasonable accounting estimates based on the facts and circumstances that were available as of the reporting date, to the extent there are differences between these estimates and actual results, the Company’s results of operations and financial position could be materially impacted. Revenue Recognition The Company recognizes the majority of its revenue from its direct-to-consumer (brick-and-mortar retail stores and concessions as well as e-commerce) and wholesale distribution channels at a point in time when it satisfies a performance obligation and transfers control of the product to the respective customer. The Company also recognizes royalty revenue from its trademark license agreements. The Company’s trademark license agreements represent symbolic licenses that are dependent on the Company’s continued support over the term of the license agreement. The amount of revenue that is recognized from the licensing arrangements is based on sales-based royalty and advertising fund contributions as well as specific fixed payments, where applicable. The Company’s trademark license agreements customarily provide for a multi-year initial term ranging from to 15 years and may contain options to renew prior to expiration for an additional multi-year period. The unrecognized portion of upfront payments is included in deferred royalties in accrued expenses and other long-term liabilities depending on the short or long-term nature of the payments to be recognized. As of October 30, 2021, the Company had $5.0 million and $13.7 million of deferred royalties related to these upfront payments included in accrued expenses and other current liabilities and other long-term liabilities, respectively. This compares to $6.6 million and $17.1 million of deferred royalties related to these upfront payments included in accrued expenses and other current liabilities and other long-term liabilities, respectively, at January 30, 2021. During the three and nine months ended October 30, 2021, the Company recognized $3.5 million and $10.6 million in net royalties related to the amortization of the deferred royalties, respectively. During the three and nine months ended October 31, 2020, the Company recognized $3.1 million and $9.8 million in net royalties related to the amortization of the deferred royalties, respectively. Refer to Note 8 for further information on disaggregation of revenue by segment and country. Allowance for Doubtful Accounts In the normal course of business, the Company grants credit directly to certain wholesale customers after a credit analysis is performed based on financial and other criteria. Accounts receivable are recorded net of an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses that may result from the inability of its wholesale customers and licensing partners to make their required payments. The Company bases its allowances on analysis of the aging of accounts receivable at the date of the financial statements, assessments of historical and current collection trends, evaluation of the impact of current and future forecasted economic conditions and whether the Company has obtained credit insurance or other guarantees. Management performs regular evaluations concerning the ability of its customers and records a provision for doubtful accounts based on these evaluations. As of October 30, 2021, approximately 45% of the Company’s total net trade accounts receivable and 59% of its European net trade receivables were subject to credit insurance coverage, certain bank guarantees or letters of credit for collection purposes. The Company’s credit insurance coverage contains certain terms and conditions specifying deductibles and annual claim limits. Management evaluates the creditworthiness of the counterparties to the credit insurance, bank guarantees, and letters of credit and records a provision for the risk of loss on these instruments based on these evaluations as considered necessary. The Company’s credit losses for the periods presented were not significant compared to sales and did not significantly exceed management’s estimates. Refer to Note 5 for further information on the Company’s allowance for doubtful accounts. Recently Issued Accounting Guidance In March 2020, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance to provide temporary optional expedients and exceptions related to contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Financial Oversight Rate (“SOFR”). This guidance may be adopted up to December 31, 2022. The Company is currently evaluating its election options and the impact on its consolidated financial statements and related disclosures. In August 2020, the FASB issued authoritative guidance to simplify the accounting for convertible instruments and contracts in an entity’s own equity and the diluted earnings per share computations for these instruments. This guidance removes major separation models required under current guidance which will enable more convertible debt instruments to be reported as a single liability instrument with no separate accounting for embedded conversion features. This guidance is effective for fiscal years beginning after December 31, 2021, which will be the Company’s first quarter of fiscal 2023, on either a full or modified retrospective basis. Early adoption is permitted for fiscal years beginning after December 31, 2020, which was the Company’s first quarter of fiscal 2022. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements and related disclosures. In May 2021, the FASB issued authoritative guidance to clarify and reduce diversity in accounting for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after modifications or exchanges based on the substance of the transactions. This guidance is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, which will be the Company’s first quarter of fiscal 2023. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements and related disclosures.
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Lease Accounting |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Accounting | Lease Accounting The Company primarily leases its showrooms, advertising, licensing, sales and merchandising offices, remote distribution and warehousing facilities and retail and factory outlet store locations under operating lease agreements expiring on various dates through January 2039. The Company also leases some of its equipment, as well as computer hardware and software, under operating and finance lease agreements expiring on various dates through May 2027. The Company’s lease agreements primarily provide for lease payments based on a minimum annual rental amount, a percentage of annual sales volume, periodic adjustments related to inflation or a combination of such lease payments. Certain retail store leases provide for lease payments based upon the minimum annual rental amount and a percentage of annual sales volume, generally ranging from 3% to 28%, when specific sales volumes are exceeded. The Company’s retail concession leases also provide for lease payments primarily based upon a percentage of annual sales volume, which averages approximately 32%. In addition to the amounts as disclosed below, the Company has estimated additional operating lease commitments of approximately $20.3 million for leases where the Company has not yet taken possession of the underlying asset as of October 30, 2021. As such, the related operating lease ROU assets and operating lease liabilities have not been recognized in the Company’s condensed consolidated balance sheet as of October 30, 2021. The components of leases are (in thousands):
The components of lease costs are (in thousands):
____________________________________________________________________ Notes: 1During the three and nine months ended October 30, 2021 and October 31, 2020, net (gains) losses on lease modifications related primarily to the early termination of lease agreements for certain of the Company’s retail locations. Operating lease costs for these retail locations prior to the early termination were included in cost of product sales. 2Amortization of leased assets related to finance leases are included in depreciation expense within cost of product sales or selling, general and administrative expenses depending on the nature of the asset in the Company’s condensed consolidated statements of income (loss). 3During the three and nine months ended October 30, 2021, variable lease costs included certain rent concessions of approximately $2.6 million and $14.5 million, respectively, received by the Company, primarily in Europe, related to the COVID-19 pandemic. During the three and nine months ended October 31, 2020, variable lease costs included certain rent concessions of approximately $8.0 million and $18.4 million, respectively, received by the Company, primarily in Europe, related to the COVID-19 pandemic. Maturities of the Company’s operating and finance lease liabilities as of October 30, 2021 are (in thousands):
______________________________________________________________________ Notes: 1Represents the maturity of lease liabilities for the remainder of fiscal 2022 and also includes rent payments that have been deferred due to the COVID-19 pandemic. This amount does not include payments made during the nine months ended October 30, 2021. Other supplemental information is (dollars in thousands):
Impairment During the three and nine months ended October 30, 2021, there were $0.7 million ROU asset impairment charges recorded primarily in Europe. During the three and nine months ended October 31, 2020, the Company recorded ROU asset impairment charges of $5.6 million and $42.1 million, respectively, related to ROU assets at certain retail locations in North America and Europe. The asset impairment charges were determined based on the excess of carrying value over the fair value of the ROU assets. The Company uses estimates of market participant rents to calculate fair value of the ROU assets. Refer to Note 15 for more information on the Company’s impairment testing.
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Lease Accounting | Lease Accounting The Company primarily leases its showrooms, advertising, licensing, sales and merchandising offices, remote distribution and warehousing facilities and retail and factory outlet store locations under operating lease agreements expiring on various dates through January 2039. The Company also leases some of its equipment, as well as computer hardware and software, under operating and finance lease agreements expiring on various dates through May 2027. The Company’s lease agreements primarily provide for lease payments based on a minimum annual rental amount, a percentage of annual sales volume, periodic adjustments related to inflation or a combination of such lease payments. Certain retail store leases provide for lease payments based upon the minimum annual rental amount and a percentage of annual sales volume, generally ranging from 3% to 28%, when specific sales volumes are exceeded. The Company’s retail concession leases also provide for lease payments primarily based upon a percentage of annual sales volume, which averages approximately 32%. In addition to the amounts as disclosed below, the Company has estimated additional operating lease commitments of approximately $20.3 million for leases where the Company has not yet taken possession of the underlying asset as of October 30, 2021. As such, the related operating lease ROU assets and operating lease liabilities have not been recognized in the Company’s condensed consolidated balance sheet as of October 30, 2021. The components of leases are (in thousands):
The components of lease costs are (in thousands):
____________________________________________________________________ Notes: 1During the three and nine months ended October 30, 2021 and October 31, 2020, net (gains) losses on lease modifications related primarily to the early termination of lease agreements for certain of the Company’s retail locations. Operating lease costs for these retail locations prior to the early termination were included in cost of product sales. 2Amortization of leased assets related to finance leases are included in depreciation expense within cost of product sales or selling, general and administrative expenses depending on the nature of the asset in the Company’s condensed consolidated statements of income (loss). 3During the three and nine months ended October 30, 2021, variable lease costs included certain rent concessions of approximately $2.6 million and $14.5 million, respectively, received by the Company, primarily in Europe, related to the COVID-19 pandemic. During the three and nine months ended October 31, 2020, variable lease costs included certain rent concessions of approximately $8.0 million and $18.4 million, respectively, received by the Company, primarily in Europe, related to the COVID-19 pandemic. Maturities of the Company’s operating and finance lease liabilities as of October 30, 2021 are (in thousands):
______________________________________________________________________ Notes: 1Represents the maturity of lease liabilities for the remainder of fiscal 2022 and also includes rent payments that have been deferred due to the COVID-19 pandemic. This amount does not include payments made during the nine months ended October 30, 2021. Other supplemental information is (dollars in thousands):
Impairment During the three and nine months ended October 30, 2021, there were $0.7 million ROU asset impairment charges recorded primarily in Europe. During the three and nine months ended October 31, 2020, the Company recorded ROU asset impairment charges of $5.6 million and $42.1 million, respectively, related to ROU assets at certain retail locations in North America and Europe. The asset impairment charges were determined based on the excess of carrying value over the fair value of the ROU assets. The Company uses estimates of market participant rents to calculate fair value of the ROU assets. Refer to Note 15 for more information on the Company’s impairment testing.
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Earnings (Loss) per Share |
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Earnings (Loss) per Share | Earnings (Loss) per ShareThe Company expects to settle the principal amount of its outstanding convertible senior notes in cash and any excess in shares. As a result, upon conversion of the convertible senior notes, only the amounts in excess of the principal amount are considered in diluted earnings per share under the treasury stock method, if applicable. See Note 10 for more information regarding the Company’s convertible senior notes. In addition, the Company has granted certain nonvested stock units that are subject to certain performance-based or market-based vesting conditions as well as continued service requirements through the respective vesting periods. These nonvested stock units are included in the computation of diluted net earnings per common share attributable to common stockholders only to the extent that the underlying performance-based or market-based vesting conditions are satisfied as of the end of the reporting period, or would be considered satisfied if the end of the reporting period was the end of the related contingency period, and the results would be dilutive under the treasury stock method. The computation of basic and diluted net earnings (loss) per common share attributable to common stockholders is (in thousands, except per share data):
Notes: 1For the nine months ended October 31, 2020, there were 397,099 of potentially dilutive shares that were not included in the computation of diluted weighted average common shares and common equivalent shares outstanding because their effect would have been antidilutive given the Company’s net loss. During the three months ended October 30, 2021 and October 31, 2020, equity awards granted for 1,341,973 and 3,610,026, respectively, of the Company’s common shares and for the nine months ended October 30, 2021 and October 31, 2020, equity awards granted for 475,584 and 3,792,552, respectively, of the Company’s common shares were outstanding but were excluded from the computation of diluted weighted average common shares and common equivalent shares outstanding because the assumed proceeds, as calculated under the treasury stock method, resulted in these awards being antidilutive. For the three and nine months ended October 30, 2021, there were 465,590 nonvested stock units which are subject to the achievement of market-based vesting conditions that were excluded from the computation of diluted weighted average common shares and common equivalent shares outstanding as the respective conditions were not achieved as of October 30, 2021. For the three and nine months ended October 31, 2020, the Company excluded 525,875 nonvested stock units which were subject to the achievement of performance-based vesting conditions from the computation of diluted weighted average common shares and common equivalent shares outstanding because these conditions were not achieved as of October 31, 2020. The conversion spread on the Company’s convertible senior notes has a dilutive impact on diluted earnings per share when the average market price of the Company’s common stock for a given period exceeds the initial conversion price of $25.78 per share of common stock, subject to adjustment upon the occurrence of certain events. Warrants to initially purchase 11.6 million shares of the Company’s common shares at an initial strike price of $46.88 per share were outstanding as of October 30, 2021 and October 31, 2020. These warrants were excluded from the computation of diluted earnings per share since the warrants’ adjusted strike price was greater than the average market price of the Company’s common stock during the three and nine months ended October 30, 2021 and October 31, 2020.
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Stockholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity Share Repurchase Program On August 23, 2021, the Company’s Board of Directors terminated the previously authorized 2012 share repurchase program (which had $47.8 million capacity remaining) and authorized a new program (the “2021 Share Repurchase Program”) to repurchase, from time-to-time and as market and business conditions warrant, up to $200 million of the Company’s common stock. Repurchases may be made on the open market or in privately negotiated transactions, pursuant to Rule 10b5-1 trading plans or other available means. There is no minimum or maximum number of shares to be repurchased under the program and the program may be discontinued at any time, without prior notice. During the three and nine months ended October 30, 2021, there were no shares repurchased under the Company’s 2021 or 2012 Share Repurchase Program. There were 4,000,000 shares repurchased at an aggregate cost of $38.8 million under the 2012 program during the nine months ended October 31, 2020. The shares were repurchased during the three months ended August 1, 2020. As of October 30, 2021, the Company had remaining authority under the 2021 Share Repurchase Program to purchase $200 million of its common stock. Dividends The following sets forth the cash dividend declared per share:
On November 23, 2021, the Company announced an increase to its regular quarterly cash dividend from $0.1125 to $0.225 per share on the Company’s common stock. In connection with the increase to the quarterly cash dividend, the Company will adjust the conversion rate (which is expected to increase) and the conversion price (which is expected to decrease) of the convertible senior notes in accordance with the terms of the indenture governing the convertible senior notes, to be effective as of December 7, 2021. Refer to Note 17 for more information. During the first and second quarters of fiscal 2021, the Company announced that its Board of Directors had deferred the decision with respect to the payment of its quarterly cash dividend, in light of the uncertainties related to the COVID-19 pandemic. The Company resumed paying its quarterly cash dividend of $0.1125 per share beginning in the third quarter of fiscal 2021, but decided to not declare any cash dividends for the first and second quarters of fiscal 2021. For each of the periods presented, dividends paid also included the impact from vesting of restricted stock units that are considered non-participating securities and are only entitled to dividend payments once the respective awards vest. Decisions on whether, when and in what amounts to continue making any future dividend distributions will remain at all times entirely at the discretion of the Company’s Board of Directors, which reserves the right to change or terminate the Company’s dividend practices at any time and for any reason without prior notice. The payment of cash dividends in the future will be based upon a number of business, legal and other considerations, including the Company’s cash flow from operations, capital expenditures, debt service and covenant requirements, cash paid for income taxes, earnings, share repurchases, economic conditions and U.S. and global liquidity. Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss), net of related income taxes, are (in thousands):
Details on reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss) are (in thousands):
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Accounts Receivable |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable | Accounts Receivable Accounts receivable is summarized as follows (in thousands):
Accounts receivable consists of trade receivables relating primarily to the Company’s wholesale business in Europe and, to a lesser extent, to its wholesale businesses in the Americas and Asia, royalty receivables relating to its licensing operations, credit card and retail concession receivables related to its retail businesses and certain other receivables. Other receivables generally relate to amounts due to the Company that result from activities that are not related to the direct sale of the Company’s products or collection of royalties.
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Inventories |
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Inventories | Inventories Inventories consist of the following (in thousands):
The balances include an allowance to write down inventories to the lower of cost or net realizable value of $33.5 million and $35.5 million as of October 30, 2021 and January 30, 2021, respectively.
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Income Taxes |
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Oct. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Intra-Entity Transaction During the quarter ended October 30, 2021, the Company completed an intra-entity transfer of intellectual property rights from a U.S. entity to a wholly-owned Swiss subsidiary, more closely aligning the Company’s intellectual property rights with its business operations. This transaction resulted in a taxable gain in the U.S. The U.S. taxable gain generated by this intercompany transfer of intellectual property was primarily offset by the recognition of a deferred income tax asset in the Swiss subsidiary. Effective Tax Rate Income tax expense for the interim periods was computed using the income tax rate estimated to be applicable for the full fiscal year, adjusted for discrete items. The Company’s effective income tax rate was an expense of 28.7% for the nine months ended October 30, 2021, compared to a benefit of 8.8% for the nine months ended October 31, 2020. The change in the effective income tax rate was primarily due to: (1) earnings for the nine months ended October 30, 2021 compared to losses for the same prior-year period; (2) a shift in the distribution of earnings among the Company’s tax jurisdictions compared to the same prior-year period; (3) an income tax benefit recorded in fiscal 2021 resulting from a change in income tax rates related to the ability to carryback net operating losses to income tax years with a higher federal corporate tax rate, partially offset by a valuation allowance for cumulative net operating losses limiting the Company’s ability to recognize deferred tax assets; and (4) the net impact of the intra-entity transfer of intellectual property rights. The intra-entity transfer of intellectual property rights occurring during the quarter ended October 30, 2021 resulted in a U.S. income tax expense of approximately $105 million. The U.S. tax expense generated by this intercompany transfer of intellectual property was substantially offset by the recognition of a deferred income tax asset in the Swiss subsidiary of approximately $102 million. The net impact to the Company’s income tax expense for the quarter ended October 30, 2021 for this transaction was approximately $3 million. For the intra-entity transfer of the intellectual property rights, the Company made a U.S. income tax payment of $80.4 million in the quarter ended October 30, 2021, with a remaining estimated $27 million currently expected to be paid in January 2022. The Company estimates it will take between 5 and 10 years to amortize the Swiss deferred income tax asset. Unrecognized Tax Benefit From time-to-time, the Company is subject to routine income and other income tax audits on various income tax matters around the world in the ordinary course of business. As of October 30, 2021, several income tax audits were ongoing for various periods in multiple jurisdictions. These audits could conclude with an assessment of additional income tax liability for the Company. These assessments could arise as the result of timing or permanent differences and could be material to the Company’s net income or future cash flows. In the event the Company disagrees with an assessment from a taxing authority, the Company may elect to appeal, litigate, pursue settlement or take other actions. The Company accrues an amount for its estimate of additional income tax liability which the Company, more likely than not, will incur as a result of the ultimate resolution of income tax audits (“uncertain income tax positions”). The Company had aggregate gross accruals for uncertain income tax positions, including penalties and interest, of $62.2 million and $40.0 million as of October 30, 2021 and January 30, 2021, respectively. This includes an accrual of $19.9 million for the estimated transition tax (excluding interest) related to the 2017 Tax Cuts and Jobs Act (the “Tax Reform”) and $20.6 million for the intra-entity transfer of intellectual property rights, substantially offset by the related deferred income tax benefit, from a U.S. entity to a wholly-owned Swiss subsidiary. The Company reviews and updates the estimates used in the accrual for uncertain income tax positions, as appropriate, as more definitive information or interpretations become available from income taxing authorities, and on the completion of income tax audits, the receipt of assessments, expiration of statutes of limitations, or occurrence of other events. During the second quarter of fiscal 2021, the Company became aware of a foreign withholding income tax regulation that could be interpreted to apply to certain of its previous transactions. The Company currently does not expect its exposure, if any, will have a material impact on its condensed consolidated financial position, results of operations or cash flows. Permanent Reinvestment Assertion The Company has historically considered the undistributed earnings of its foreign subsidiaries to be indefinitely reinvested. As a result of the Tax Reform, the Company had a substantial amount of previously taxed earnings that could be distributed to the U.S. without additional U.S. taxation. The Company continues to evaluate its plans for reinvestment or repatriation of unremitted foreign earnings and regularly reviews its cash positions and determination of permanent reinvestment of foreign earnings. As of October 30, 2021, the Company determined that approximately $7.0 million of such foreign earnings are no longer indefinitely reinvested. The incremental tax cost to repatriate these earnings to the U.S. is immaterial. The Company intends to indefinitely reinvest the remaining earnings from the Company’s foreign subsidiaries for which a deferred tax liability has not already been recorded. It is not practicable to estimate the amount of tax that might be payable if these earnings were repatriated due to the complexities associated with the hypothetical calculation.
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company’s businesses are grouped into five reportable segments for management and internal financial reporting purposes: Americas Retail, Americas Wholesale, Europe, Asia and Licensing. The Company’s Americas Retail, Americas Wholesale, Europe and Licensing reportable segments are the same as their respective operating segments. Certain components of the Company’s Asia operating segment are separate operating segments based on region, which have been aggregated into the Asia reportable segment for disclosure purposes. Management evaluates segment performance based primarily on revenues and earnings (loss) from operations before corporate performance-based compensation costs, asset impairment charges, net gains (losses) on lease modifications, restructuring charges and certain non-recurring credits (charges), if any. The Company believes this segment reporting reflects how its business segments are managed and how each segment’s performance is evaluated by the Company’s chief operating decision maker to assess performance and make resource allocation decisions. Net revenue and earnings (loss) from operations are summarized (in thousands):
______________________________________________________________________ Notes: 1.During the three and nine months ended October 30, 2021 and October 31, 2020, the Company recognized asset impairment charges related primarily to impairment of certain operating lease ROU assets and impairment of property and equipment related to certain retail locations resulting from lower revenue and future cash flow projections from the ongoing effects of the COVID-19 pandemic and expected store closures. Refer to Note 2 and Note 15 for more information regarding these asset impairment charges. 2.During the three and nine months ended October 30, 2021 and October 31, 2020, amounts recorded represent net gains (losses) on lease modifications related primarily to the early termination of certain lease agreements. The below presents information regarding geographic areas in which the Company operated. Net revenue is classified primarily based on the country where the Company’s customer is located (in thousands):
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Borrowings and Finance Lease Obligations |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings and Finance Lease Obligations | Borrowings and Finance Lease Obligations Borrowings and finance lease obligations are summarized (in thousands):
Term Loans As a precautionary measure to ensure financial flexibility and maintain maximum liquidity in response to the COVID-19 pandemic, the Company entered into term loans with certain banks primarily in Europe during the fiscal year ended January 30, 2021. These loans are primarily unsecured, have terms ranging from to-five years and provide annual interest rates ranging between 0.8% to 2.2%. As of October 30, 2021 and January 30, 2021, the Company had outstanding borrowings of $52.3 million and $56.8 million under these borrowing arrangements, respectively. Finance Lease Obligations During fiscal 2018, the Company entered into a finance lease related to equipment used in its European distribution center located in the Netherlands. The finance lease primarily provides for monthly minimum lease payments through May 2027 with an effective interest rate of approximately 6%. During fiscal 2021, the Company also entered into finance leases for equipment used in its European distribution centers located in Italy. These finance lease obligations totaled $17.9 million and $18.4 million as of October 30, 2021 and January 30, 2021, respectively. The Company also has smaller finance leases related primarily to computer hardware and software. As of October 30, 2021 and January 30, 2021, these finance lease obligations totaled $2.2 million and $3.7 million, respectively. Mortgage Debt During fiscal 2017, the Company entered into a ten-year $21.5 million real estate secured loan (the “Mortgage Debt”) which is secured by the Company’s U.S. distribution center based in Louisville, Kentucky. The Mortgage Debt requires the Company to comply with a fixed charge coverage ratio on a trailing four-quarter basis if consolidated cash, cash equivalents, short-term investment balances and availability under borrowing arrangements fall below certain levels. In addition, the Mortgage Debt contains customary covenants, including covenants that limit or restrict the Company’s ability to incur liens on the mortgaged property and enter into certain contractual obligations. Upon the occurrence of an event of default under the Mortgage Debt, the lender may terminate the Mortgage Debt and declare all amounts outstanding to be immediately due and payable. The Mortgage Debt specifies a number of events of default (some of which are subject to applicable grace or cure periods), including, among other things, non-payment defaults, covenant defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency defaults and material judgment defaults. Credit Facilities During fiscal 2021, the Company entered into an amendment of its senior secured asset-based revolving credit facility with Bank of America, N.A. and other lenders (as amended, the “Credit Facility”). The Credit Facility provides for a borrowing capacity in an amount up to $120 million, including a Canadian sub-facility up to $20 million, subject to a borrowing base. Based on applicable accounts receivable and inventory balances as of October 30, 2021, the Company could have borrowed up to $118 million under the Credit Facility. The Credit Facility has an option to expand the borrowing capacity by up to $180 million subject to certain terms and conditions, including the willingness of existing or new lenders to assume such increased amount. The Credit Facility is available for direct borrowings and the issuance of letters of credit, subject to certain letters of credit sublimits, and may be used for working capital and other general corporate purposes. As of October 30, 2021, the Company had $2.1 million in outstanding standby letters of credit, no outstanding documentary letters of credit and no outstanding borrowings under the Credit Facility. The Credit Facility requires the Company to comply with a fixed charge coverage ratio on a trailing four-quarter basis if a default or an event of default occurs under the Credit Facility or generally if borrowings exceed 80% of the borrowing base. In addition, the Credit Facility contains customary covenants, including covenants that limit or restrict the Company and certain of its subsidiaries’ ability to: incur liens, incur indebtedness, make investments, dispose of assets, make certain restricted payments, merge or consolidate and enter into certain transactions with affiliates. Upon the occurrence of an event of default under the Credit Facility, the lenders may cease making loans, terminate the Credit Facility and declare all amounts outstanding to be immediately due and payable. The Credit Facility specifies a number of events of default (some of which are subject to applicable grace or cure periods), including, among other things, non-payment defaults, covenant defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency defaults, and material judgment defaults. The Credit Facility allows for both secured and unsecured borrowings outside of the Credit Facility up to specified amounts. The Company, through its European subsidiaries, maintains short-term committed borrowing agreements, primarily for working capital purposes, with various banks in Europe. Some of these agreements include certain equity-based financial covenants. As of October 30, 2021, the Company had no outstanding borrowings, no outstanding documentary letters of credit and $131.9 million available for future borrowings under these agreements. The agreements are denominated primarily in euros and provide for annual interest rates ranging from 0.9% to 1.1%. The Company, through its China subsidiary, maintains a short-term uncommitted bank borrowing agreement that provides for a borrowing capacity up to $30 million, primarily for working capital purposes. The Company had $7.1 million in outstanding borrowings under this agreement as of October 30, 2021 and $7.3 million in outstanding borrowings under this agreement as of January 30, 2021. The Company, through its Japan subsidiary, maintains a short-term uncommitted bank borrowing agreement that provides for a borrowing capacity up to $4.4 million, primarily for working capital purposes. The Company had no outstanding borrowings under this agreement as of October 30, 2021 and January 30, 2021. Other From time-to-time, the Company will obtain other financing in foreign countries for working capital to finance its local operations. Convertible Senior Notes and Related Transactions2.00% Convertible Senior Notes due 2024 In April 2019, the Company issued $300 million principal amount of 2.00% convertible senior notes due 2024 (the “Notes”) in a private offering. In connection with the issuance of the Notes, the Company entered into an indenture (the “Indenture”) with respect to the Notes with U.S. Bank N.A., as trustee (the “Trustee”). The Notes are senior unsecured obligations of the Company and bear interest at an annual rate of 2.00% payable semi-annually in arrears on April 15 and October 15 of each year. The Notes will mature on April 15, 2024, unless earlier repurchased or converted in accordance with their terms. The Notes are convertible in certain circumstances into cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock, at the Company’s election, at an initial conversion rate of 38.7879 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $25.78 per share, subject to adjustment upon the occurrence of certain events. In connection with the increase to the quarterly cash dividend announced on November 23, 2021, the Company will adjust the conversion rate (which is expected to increase) and the conversion price (which is expected to decrease) of the convertible senior notes in accordance with the terms of the indenture governing the convertible senior notes, to be effective as of December 7, 2021. Prior to November 15, 2023, the Notes are convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date of the Notes. Following certain corporate events described in the Indenture that occur prior to the maturity date, the conversion rate will be increased for a holder who elects to convert its Notes in connection with such corporate event in certain circumstances. The Notes are not redeemable prior to maturity, and no sinking fund is provided for the Notes. As of October 30, 2021, none of the conditions allowing holders of the Notes to convert had been met. The Company expects to settle the principal amount of the Notes in 2024 in cash and any excess in shares. The Company separated the Notes into liability and equity components. The liability component was recorded at fair value. The equity component represented the difference between the proceeds from the issuance of the Notes and the fair value of the liability component. The excess of the liability component over its carrying amount (“debt discount”) is being amortized to interest expense over the term of the Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. Debt issuance costs related to the Notes were comprised of discounts and commissions payable to the initial purchasers of $3.8 million and third-party offering costs of approximately $1.5 million. The Company allocated the total amount incurred to the liability and equity components based on their relative values. Debt issuance costs attributable to the liability component were recorded as a contra-liability and are presented net against the convertible senior notes balance on the Company’s condensed consolidated balance sheets. These costs are being amortized to interest expense over the term of the Notes. During the three and nine months ended October 30, 2021, the Company recorded $2.8 million and $8.3 million, respectively, of interest expense related to the amortization of the debt discount. During the three and nine months ended October 31, 2020, the Company recorded approximately $2.6 million and $7.8 million, respectively, of interest expense related to the amortization of the debt discount. The Notes consist of the following (in thousands):
______________________________________________________________________ Notes: 1Included in paid-in capital within stockholders’ equity on the condensed consolidated balance sheets and is net of debt issuance costs and deferred taxes. As of October 30, 2021 and January 30, 2021, the fair value, net of unamortized debt discount and issuance costs, of the Notes was approximately $298.5 million and $303.5 million, respectively. The fair value of the Notes is determined based on inputs that are observable in the market and have been classified as Level 2 in the fair value hierarchy. Convertible Bond Hedge and Warrant Transactions In connection with the offering of the Notes, the Company entered into convertible note hedge transactions whereby the Company had the option to purchase a total of approximately 11.6 million shares of its common stock at an initial strike price of approximately $25.78 per share, in each case subject to adjustment in certain circumstances. The total cost of the convertible note hedge transactions was $61.0 million. In addition, the Company sold warrants whereby the holders of the warrants had the option to purchase a total of approximately 11.6 million shares of the Company’s common stock at an initial strike price of $46.88 per share. Both the number of shares underlying the convertible note hedges and warrants and the strike price of the instruments are subject to customary adjustments. In connection with the increase to the quarterly cash dividend announced on November 23, 2021, an adjustment is expected to be made to the strike prices with respect to the convertible note hedges and the warrants, each of which will be decreased in accordance with the terms of the convertible note hedge confirmations and warrant confirmations, respectively. The Company received $28.1 million in cash proceeds from the sale of these warrants. Taken together, the purchase of the convertible note hedges and sale of the warrants are intended to offset dilution from the conversion of the Notes to the extent the market price per share of the Company’s common stock exceeds the adjusted strike price of the convertible note hedges. The warrant transaction may have a dilutive effect with respect to the Company’s common stock to the extent the market price per share of the Company’s common stock exceeds the adjusted strike price of the warrants. The convertible note hedges and warrants are recorded in stockholders’ equity, are not accounted for as derivatives and are not remeasured each reporting period. The Company had a deferred tax liability of $8.8 million in connection with the debt discount associated with the Notes and a deferred tax asset of $9.7 million in connection with the convertible note hedge transactions for each of the periods ended October 30, 2021 and January 30, 2021. The net deferred tax impact was included in deferred tax assets on the Company’s condensed consolidated balance sheets.
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Convertible Senior Notes and Related Transactions |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Senior Notes and Related Transactions | Borrowings and Finance Lease Obligations Borrowings and finance lease obligations are summarized (in thousands):
Term Loans As a precautionary measure to ensure financial flexibility and maintain maximum liquidity in response to the COVID-19 pandemic, the Company entered into term loans with certain banks primarily in Europe during the fiscal year ended January 30, 2021. These loans are primarily unsecured, have terms ranging from to-five years and provide annual interest rates ranging between 0.8% to 2.2%. As of October 30, 2021 and January 30, 2021, the Company had outstanding borrowings of $52.3 million and $56.8 million under these borrowing arrangements, respectively. Finance Lease Obligations During fiscal 2018, the Company entered into a finance lease related to equipment used in its European distribution center located in the Netherlands. The finance lease primarily provides for monthly minimum lease payments through May 2027 with an effective interest rate of approximately 6%. During fiscal 2021, the Company also entered into finance leases for equipment used in its European distribution centers located in Italy. These finance lease obligations totaled $17.9 million and $18.4 million as of October 30, 2021 and January 30, 2021, respectively. The Company also has smaller finance leases related primarily to computer hardware and software. As of October 30, 2021 and January 30, 2021, these finance lease obligations totaled $2.2 million and $3.7 million, respectively. Mortgage Debt During fiscal 2017, the Company entered into a ten-year $21.5 million real estate secured loan (the “Mortgage Debt”) which is secured by the Company’s U.S. distribution center based in Louisville, Kentucky. The Mortgage Debt requires the Company to comply with a fixed charge coverage ratio on a trailing four-quarter basis if consolidated cash, cash equivalents, short-term investment balances and availability under borrowing arrangements fall below certain levels. In addition, the Mortgage Debt contains customary covenants, including covenants that limit or restrict the Company’s ability to incur liens on the mortgaged property and enter into certain contractual obligations. Upon the occurrence of an event of default under the Mortgage Debt, the lender may terminate the Mortgage Debt and declare all amounts outstanding to be immediately due and payable. The Mortgage Debt specifies a number of events of default (some of which are subject to applicable grace or cure periods), including, among other things, non-payment defaults, covenant defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency defaults and material judgment defaults. Credit Facilities During fiscal 2021, the Company entered into an amendment of its senior secured asset-based revolving credit facility with Bank of America, N.A. and other lenders (as amended, the “Credit Facility”). The Credit Facility provides for a borrowing capacity in an amount up to $120 million, including a Canadian sub-facility up to $20 million, subject to a borrowing base. Based on applicable accounts receivable and inventory balances as of October 30, 2021, the Company could have borrowed up to $118 million under the Credit Facility. The Credit Facility has an option to expand the borrowing capacity by up to $180 million subject to certain terms and conditions, including the willingness of existing or new lenders to assume such increased amount. The Credit Facility is available for direct borrowings and the issuance of letters of credit, subject to certain letters of credit sublimits, and may be used for working capital and other general corporate purposes. As of October 30, 2021, the Company had $2.1 million in outstanding standby letters of credit, no outstanding documentary letters of credit and no outstanding borrowings under the Credit Facility. The Credit Facility requires the Company to comply with a fixed charge coverage ratio on a trailing four-quarter basis if a default or an event of default occurs under the Credit Facility or generally if borrowings exceed 80% of the borrowing base. In addition, the Credit Facility contains customary covenants, including covenants that limit or restrict the Company and certain of its subsidiaries’ ability to: incur liens, incur indebtedness, make investments, dispose of assets, make certain restricted payments, merge or consolidate and enter into certain transactions with affiliates. Upon the occurrence of an event of default under the Credit Facility, the lenders may cease making loans, terminate the Credit Facility and declare all amounts outstanding to be immediately due and payable. The Credit Facility specifies a number of events of default (some of which are subject to applicable grace or cure periods), including, among other things, non-payment defaults, covenant defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency defaults, and material judgment defaults. The Credit Facility allows for both secured and unsecured borrowings outside of the Credit Facility up to specified amounts. The Company, through its European subsidiaries, maintains short-term committed borrowing agreements, primarily for working capital purposes, with various banks in Europe. Some of these agreements include certain equity-based financial covenants. As of October 30, 2021, the Company had no outstanding borrowings, no outstanding documentary letters of credit and $131.9 million available for future borrowings under these agreements. The agreements are denominated primarily in euros and provide for annual interest rates ranging from 0.9% to 1.1%. The Company, through its China subsidiary, maintains a short-term uncommitted bank borrowing agreement that provides for a borrowing capacity up to $30 million, primarily for working capital purposes. The Company had $7.1 million in outstanding borrowings under this agreement as of October 30, 2021 and $7.3 million in outstanding borrowings under this agreement as of January 30, 2021. The Company, through its Japan subsidiary, maintains a short-term uncommitted bank borrowing agreement that provides for a borrowing capacity up to $4.4 million, primarily for working capital purposes. The Company had no outstanding borrowings under this agreement as of October 30, 2021 and January 30, 2021. Other From time-to-time, the Company will obtain other financing in foreign countries for working capital to finance its local operations. Convertible Senior Notes and Related Transactions2.00% Convertible Senior Notes due 2024 In April 2019, the Company issued $300 million principal amount of 2.00% convertible senior notes due 2024 (the “Notes”) in a private offering. In connection with the issuance of the Notes, the Company entered into an indenture (the “Indenture”) with respect to the Notes with U.S. Bank N.A., as trustee (the “Trustee”). The Notes are senior unsecured obligations of the Company and bear interest at an annual rate of 2.00% payable semi-annually in arrears on April 15 and October 15 of each year. The Notes will mature on April 15, 2024, unless earlier repurchased or converted in accordance with their terms. The Notes are convertible in certain circumstances into cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock, at the Company’s election, at an initial conversion rate of 38.7879 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $25.78 per share, subject to adjustment upon the occurrence of certain events. In connection with the increase to the quarterly cash dividend announced on November 23, 2021, the Company will adjust the conversion rate (which is expected to increase) and the conversion price (which is expected to decrease) of the convertible senior notes in accordance with the terms of the indenture governing the convertible senior notes, to be effective as of December 7, 2021. Prior to November 15, 2023, the Notes are convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date of the Notes. Following certain corporate events described in the Indenture that occur prior to the maturity date, the conversion rate will be increased for a holder who elects to convert its Notes in connection with such corporate event in certain circumstances. The Notes are not redeemable prior to maturity, and no sinking fund is provided for the Notes. As of October 30, 2021, none of the conditions allowing holders of the Notes to convert had been met. The Company expects to settle the principal amount of the Notes in 2024 in cash and any excess in shares. The Company separated the Notes into liability and equity components. The liability component was recorded at fair value. The equity component represented the difference between the proceeds from the issuance of the Notes and the fair value of the liability component. The excess of the liability component over its carrying amount (“debt discount”) is being amortized to interest expense over the term of the Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. Debt issuance costs related to the Notes were comprised of discounts and commissions payable to the initial purchasers of $3.8 million and third-party offering costs of approximately $1.5 million. The Company allocated the total amount incurred to the liability and equity components based on their relative values. Debt issuance costs attributable to the liability component were recorded as a contra-liability and are presented net against the convertible senior notes balance on the Company’s condensed consolidated balance sheets. These costs are being amortized to interest expense over the term of the Notes. During the three and nine months ended October 30, 2021, the Company recorded $2.8 million and $8.3 million, respectively, of interest expense related to the amortization of the debt discount. During the three and nine months ended October 31, 2020, the Company recorded approximately $2.6 million and $7.8 million, respectively, of interest expense related to the amortization of the debt discount. The Notes consist of the following (in thousands):
______________________________________________________________________ Notes: 1Included in paid-in capital within stockholders’ equity on the condensed consolidated balance sheets and is net of debt issuance costs and deferred taxes. As of October 30, 2021 and January 30, 2021, the fair value, net of unamortized debt discount and issuance costs, of the Notes was approximately $298.5 million and $303.5 million, respectively. The fair value of the Notes is determined based on inputs that are observable in the market and have been classified as Level 2 in the fair value hierarchy. Convertible Bond Hedge and Warrant Transactions In connection with the offering of the Notes, the Company entered into convertible note hedge transactions whereby the Company had the option to purchase a total of approximately 11.6 million shares of its common stock at an initial strike price of approximately $25.78 per share, in each case subject to adjustment in certain circumstances. The total cost of the convertible note hedge transactions was $61.0 million. In addition, the Company sold warrants whereby the holders of the warrants had the option to purchase a total of approximately 11.6 million shares of the Company’s common stock at an initial strike price of $46.88 per share. Both the number of shares underlying the convertible note hedges and warrants and the strike price of the instruments are subject to customary adjustments. In connection with the increase to the quarterly cash dividend announced on November 23, 2021, an adjustment is expected to be made to the strike prices with respect to the convertible note hedges and the warrants, each of which will be decreased in accordance with the terms of the convertible note hedge confirmations and warrant confirmations, respectively. The Company received $28.1 million in cash proceeds from the sale of these warrants. Taken together, the purchase of the convertible note hedges and sale of the warrants are intended to offset dilution from the conversion of the Notes to the extent the market price per share of the Company’s common stock exceeds the adjusted strike price of the convertible note hedges. The warrant transaction may have a dilutive effect with respect to the Company’s common stock to the extent the market price per share of the Company’s common stock exceeds the adjusted strike price of the warrants. The convertible note hedges and warrants are recorded in stockholders’ equity, are not accounted for as derivatives and are not remeasured each reporting period. The Company had a deferred tax liability of $8.8 million in connection with the debt discount associated with the Notes and a deferred tax asset of $9.7 million in connection with the convertible note hedge transactions for each of the periods ended October 30, 2021 and January 30, 2021. The net deferred tax impact was included in deferred tax assets on the Company’s condensed consolidated balance sheets.
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Share-Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation The following summarizes the share-based compensation expense recognized under all of the Company’s stock plans (in thousands):
Unrecognized compensation cost related to nonvested stock options and nonvested stock awards/units totaled approximately $5.2 million and $29.5 million, respectively, as of October 30, 2021. This cost is expected to be recognized over a weighted average period of 1.7 years. Performance-Based Awards The Company has granted certain nonvested stock units subject to performance-based vesting conditions to select executive officers. Each award of nonvested stock units generally has an initial vesting period from the date of the grant through either (i) the end of the first fiscal year or (ii) the first anniversary of the date of grant, followed by annual vesting periods which may range from -to-three years. The following summarizes the activity for nonvested performance-based units during the nine months ended October 30, 2021:
Market-Based Awards The Company has granted certain nonvested stock units subject to market-based vesting conditions to select executive officers. These market-based awards include (i) units where the number of shares that may ultimately vest will equal 0% to 150% of the target number of shares, subject to the performance of the Company’s total stockholder return (“TSR”) relative to the TSR of a select group of peer companies over a three-year period and (ii) units scheduled to vest based on the attainment of certain absolute stock price levels over a four-year period. Vesting is also subject to continued service requirements through the vesting date. The following summarizes the activity for nonvested market-based units during the nine months ended October 30, 2021:
____________________________________________________________________ Notes: 1As a result of the achievement of certain market-based vesting conditions, there were 41,955 shares that vested in addition to the original target number of shares granted in fiscal 2019.
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Related Party Transactions |
9 Months Ended |
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Oct. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company and its subsidiaries periodically enter into transactions with other entities or individuals that are considered related parties, including certain transactions with entities owned by, affiliated with, or for the respective benefit of, Paul Marciano, who is an executive and member of the Board of the Company, and Maurice Marciano, who is also a member of the Board, and certain of their children (the “Marciano Entities”). Leases The Company leases warehouse and administrative facilities, including the Company’s corporate headquarters in Los Angeles, California, from partnerships affiliated with the Marciano Entities and certain of their affiliates. There were four of these leases in effect as of October 30, 2021 with expiration or option exercise dates ranging from calendar years 2023 to 2030. Aggregate lease costs recorded under these four related party leases were approximately $6.4 million and $4.1 million for the nine months ended October 30, 2021 and October 31, 2020, respectively. The Company believes the terms of the related party leases have not been significantly affected by the fact the Company and the lessors are related. Aircraft Arrangements The Company periodically charters aircraft owned by the Marciano Entities through informal arrangements with the Marciano Entities and independent third-party management companies contracted by such Marciano Entities to manage their aircraft. The total fees paid under these arrangements for the nine months ended October 30, 2021 and October 31, 2020 were approximately $2.8 million and $2.0 million, respectively. Minority Investment The Company owns a 30% interest in a privately held men’s footwear company (the “Footwear Company”) in which the Marciano Entities also own a 45% interest. In December 2020, the Company provided the Footwear Company with a revolving credit facility for $2.0 million, which provides for an annual interest rate of 2.75% and matures in November 2023. As of both October 30, 2021 and January 30, 2021, the Company had a note receivable of $0.2 million included in other assets in its condensed consolidated balance sheets related to outstanding borrowings by the Footwear Company under this revolving credit facility.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Investment Commitments As of October 30, 2021, the Company had an unfunded commitment to invest €1.0 million ($1.2 million) in a private equity fund. Refer to Note 15 for further information. Legal and Other Proceedings The Company is involved in legal proceedings, arising both in the ordinary course of business and otherwise, including the proceedings described below as well as various other claims and other matters incidental to the Company’s business. Unless otherwise stated, the resolution of any particular proceeding is not currently expected to have a material adverse impact on the Company’s financial position, results of operations or cash flows. Even if such an impact could be material, the Company may not be able to estimate the reasonably possible loss or range of loss until developments in the proceedings have provided sufficient information to support an assessment. The Company has received customs tax assessment notices from the Italian Customs Agency (“ICA”) regarding its customs tax audit of one of the Company’s European subsidiaries for the period from July 2010 through December 2012. Such assessments totaled €9.8 million ($11.3 million), including potential penalties and interest. The Company strongly disagreed with the ICA’s positions and therefore filed appeals with the Milan First Degree Tax Court (“MFDTC”). Those appeals were split into a number of different cases that were then heard by different sections of the MFDTC. The MFDTC ruled in favor of the Company on all of these appeals. The ICA subsequently appealed €9.7 million ($11.2 million) of these favorable MFDTC judgments with the Appeals Court. To date, €8.5 million ($9.8 million) have been decided in favor of the Company and €1.2 million ($1.4 million) have been decided in favor of the ICA. The Company believes that the unfavorable Appeals Court ruling is incorrect and inconsistent with the prior rulings on similar matters by both the MFDTC and other judges within the Appeals Court, and has appealed the decision to the Supreme Court. The ICA has appealed most of the favorable Appeals Court rulings to the Supreme Court. To date, of the cases that have been appealed to the Supreme Court, €0.4 million ($0.5 million) have been decided in favor of the Company based on the merits of the case and €1.1 million ($1.3 million) have been remanded back to the lower court for further consideration. There can be no assurances the Company will be successful in the remaining appeals. It also continues to be possible that the Company will receive similar or even larger assessments for periods subsequent to December 2012 or other claims or charges related to the matter in the future. Although the Company believes that it has a strong position and will continue to vigorously defend this matter, it is unable to predict with certainty whether or not these efforts will ultimately be successful or whether the outcome will have a material impact on the Company’s financial position, results of operations or cash flows. On January 19, 2021, a former model for the Company filed an action against Mr. Paul Marciano and the Company in the California Superior Court in Los Angeles (Jane Doe v. Paul Marciano, et al.). The complaint asserts several claims based on allegations that the former model was treated improperly by Mr. Marciano and retaliated against by the Company. The complaint seeks an unspecified amount of general damages, medical expenses, lost earnings, punitive damages and attorneys’ fees. The case has been moved to arbitration and is still at an early stage. Mr. Marciano and the Company dispute these claims fully and intend to contest them vigorously. In March and April 2021, the Company received separate communications from two other individuals containing similar allegations against Mr. Marciano and the Company. Each individual who contacted the Company in March and April is represented by the same attorney who represents the plaintiff in the January action. Though no complaint was filed with respect to the allegations in the March letter and Mr. Marciano and the Company disputed each of those allegations fully, in order to avoid the cost of litigation and without admitting liability or fault, the Company and Mr. Marciano entered into a settlement agreement with the individual who sent the March letter, resolving the claims for an aggregate total amount of $300,000 in July 2021. On October 22, 2021, the individual who sent the April letter filed an action against Mr. Marciano and the Company in the United States District Court for the Central District of California (Jane Doe 3 v. Paul Marciano, et al.). The complaint asserts a claim under the Trafficking Victims Protection Act based on allegations that the individual was treated improperly by Mr. Marciano. The complaint seeks an unspecified amount of compensatory damages, punitive damages and attorneys’ fees. Mr. Marciano and the Company also dispute these claims fully and intend to contest them vigorously. Redeemable Noncontrolling Interests The Company is party to a put arrangement with respect to the common securities that represent the remaining noncontrolling interest for its majority-owned subsidiary, Guess Brasil Comércio e Distribuição S.A. (“Guess Brazil”). The put arrangement for Guess Brazil, representing 40% of the total outstanding equity interest of that subsidiary, may be exercised at the discretion of the noncontrolling interest holder by providing written notice to the Company every third anniversary beginning in March 2019, subject to certain time restrictions. The redemption value of the Guess Brazil put arrangement is based on a multiple of Guess Brazil’s earnings before interest, taxes, depreciation and amortization subject to certain adjustments and is classified as a redeemable noncontrolling interest outside of permanent equity in the Company’s condensed consolidated balance sheet. The carrying value of the redeemable noncontrolling interest related to Guess Brazil was $0.4 million and $0.9 million as of October 30, 2021 and January 30, 2021, respectively. The Company is also party to a put arrangement with respect to the common securities that represent the remaining noncontrolling interest for its majority-owned subsidiary, Guess? CIS, LLC (“Guess CIS”), which was established through a majority-owned joint venture during fiscal 2016. The put arrangement for Guess CIS, representing 30% of the total outstanding equity interest of that subsidiary, may be exercised at the discretion of the noncontrolling interest holder by providing written notice to the Company during the period beginning after the fifth anniversary of the agreement through December 31, 2025, or sooner in certain limited circumstances. The redemption value of the Guess CIS put arrangement is based on a multiple of Guess CIS’s earnings before interest, taxes, depreciation and amortization subject to certain adjustments and is classified as a redeemable noncontrolling interest outside of permanent equity in the Company’s condensed consolidated balance sheet. The carrying value of the redeemable noncontrolling interest related to Guess CIS was $9.4 million and $3.0 million as of October 30, 2021 and January 30, 2021, respectively. The redeemable noncontrolling interests of Guess Brazil and Guess CIS put arrangements are recorded at the greater of their carrying values, adjusted for their share of the allocation of income or loss, dividends and foreign currency translation adjustments, or redemption values. As of October 30, 2021, the redeemable noncontrolling interest redemption value adjustment was $5.7 million. A reconciliation of the total carrying amount of redeemable noncontrolling interests is (in thousands):
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Defined Benefit Plans |
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Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans | Defined Benefit Plans Supplemental Executive Retirement Plan The Company’s Supplemental Executive Retirement Plan (“SERP”) provides select employees who satisfy certain eligibility requirements with certain benefits upon retirement, termination of employment, death, disability or a change in control of the Company, in certain prescribed circumstances. As a non-qualified pension plan, no dedicated funding of the SERP is required; however, the Company has made periodic payments into insurance policies held in a rabbi trust to fund the expected obligations arising under the non-qualified SERP. The cash surrender values of the insurance policies were $73.0 million and $72.1 million as of October 30, 2021 and January 30, 2021, respectively, and were included in other assets in the Company’s condensed consolidated balance sheets. As a result of changes in the value of the insurance policy investments, the Company recorded unrealized gains of $0.1 million and $2.3 million in other income (expense) during the three and nine months ended October 30, 2021, respectively, and unrealized gains (losses) of $(0.3) million and $1.7 million in other income (expense) during the three and nine months ended October 31, 2020, respectively. The projected benefit obligation was $51.7 million and $52.3 million as of October 30, 2021 and January 30, 2021, respectively, and was included in accrued expenses and other long-term liabilities in the Company’s condensed consolidated balance sheets depending on the expected timing of payments. SERP benefit payments of $0.5 million and $1.4 million were made during the three and nine months ended October 30, 2021, respectively. SERP benefit payments of $0.4 million and $1.3 million were made during the three and nine months ended October 31, 2020, respectively. Foreign Pension Plans In certain foreign jurisdictions, primarily in Switzerland, the Company is required to guarantee the returns on Company-sponsored defined contribution plans in accordance with local regulations. The Company’s contributions must be made in an amount at least equal to the employee’s contribution. Minimum employee contributions are based on the respective employee’s age, salary and gender. As of October 30, 2021 and January 30, 2021, the foreign pension plans had a total projected benefit obligation of $40.4 million and $41.5 million, respectively, and plan assets held in independent investment fiduciaries of $34.1 million and $35.0 million, respectively. The net liability of $6.3 million and $6.4 million was included in other long-term liabilities in the Company’s condensed consolidated balance sheets as of October 30, 2021 and January 30, 2021, respectively. The components of net periodic defined benefit pension cost related to the Company’s defined benefit plans are (in thousands):
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows: Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that can be accessed at the measurement date. Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e. interest rates, yield curves, etc.) and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). Level 3—Unobservable inputs that reflect assumptions about what market participants would use in pricing the asset or liability. These inputs are based on the best information available, including the Company’s own data. The following presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands):
Foreign exchange currency contracts may be entered into by the Company to hedge the future payment of inventory and intercompany transactions by non-U.S. subsidiaries. Periodically, the Company may also use foreign exchange currency contracts to hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries. The fair values of the Company’s foreign exchange currency contracts are based on quoted foreign exchange forward rates at the reporting date. The fair values of the Company’s interest rate swaps are based upon inputs corroborated by observable market data. Deferred compensation obligations to employees are adjusted based on changes in the fair value of the underlying employee-directed investments. Fair value of these obligations is based upon inputs corroborated by observable market data. The Company included €3.6 million ($4.2 million) and €2.4 million ($3.0 million) in other assets in the Company’s condensed consolidated balance sheets related to its investment in a private equity fund for the periods ended October 30, 2021 and January 30, 2021, respectively. The Company uses net asset value per share as a practical expedient to measure the fair value of this investment and has not included this investment in the fair value hierarchy as disclosed above. As of October 30, 2021, the Company had an unfunded commitment to invest an additional €1.0 million ($1.2 million) in the private equity fund. The fair values of the Company’s debt instruments (see Note 9) are based on the amount of future cash flows associated with each instrument discounted using the Company’s incremental borrowing rate. As of October 30, 2021 and January 30, 2021, the carrying value was not materially different from fair value, as the interest rates on the Company’s debt approximated rates currently available to the Company. The fair value of the Company’s convertible senior notes (see Note 10) is determined based on inputs that are observable in the market and have been classified as Level 2 in the fair value hierarchy. The carrying amount of the Company’s remaining financial instruments, which principally include cash and cash equivalents, trade receivables, accounts payable and accrued expenses, approximates fair value due to the relatively short maturity of such instruments. Long-Lived Assets Long-lived assets, such as property and equipment and operating lease ROU assets, are reviewed for impairment quarterly or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The majority of the Company’s long-lived assets relate to its retail operations which consist primarily of regular retail and flagship locations. The Company considers each individual regular retail location as an asset group for impairment testing, which is the lowest level at which individual cash flows can be identified. The Company also evaluates impairment risk for retail locations that are expected to be closed in the foreseeable future. The Company has flagship locations that are used as a regional marketing tool to build brand awareness and promote the Company’s current product. Provided the flagship locations continue to meet the appropriate criteria, impairment for these locations is tested at a reporting unit level similar to goodwill since they do not have separately identifiable cash flows. An asset is considered to be impaired if the Company determines that the carrying value may not be recoverable based upon its assessment of the asset’s ability to continue to generate earnings from operations and positive cash flow in future periods or if significant changes in the Company’s strategic business objectives and utilization of the assets occurred. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows adjusted for lease payments, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the estimated fair value. The Company uses estimates of market participant rents to calculate fair value of ROU assets and discounted future cash flows of the asset group to quantify fair value for other long-lived assets. These nonrecurring fair value measurements are considered Level 3 inputs as defined above. The impairment loss calculations require management to apply judgment in estimating future cash flows and the discount rates that reflect the risk inherent in future cash flows. Future expected cash flows for assets in regular retail locations are based on management’s estimates of future cash flows over the remaining lease period or expected life, if shorter. For expected location closures, the Company will evaluate whether it is necessary to shorten the useful life for any of the assets within the respective asset group. The Company will use this revised useful life when estimating the asset group’s future cash flows. The Company considers historical trends, expected future business trends and other factors when estimating the future cash flow for each regular retail location. The Company also considers factors such as the following: the local environment for each regular retail location, including mall traffic and competition; the Company’s ability to successfully implement strategic initiatives; and the ability to control variable costs such as cost of sales and payroll and, in some cases, renegotiate lease costs. As discussed further in Note 1, the COVID-19 pandemic has materially impacted the Company’s financial results during the three and nine months ended October 30, 2021 and October 31, 2020 and could continue to impact the Company’s operations in ways the Company is not able to predict today due to the evolving situation. The Company has made reasonable assumptions and judgments to determine the fair value of the assets tested based on the facts and circumstances that were available as of the reporting date. If actual results are not consistent with the assumptions and judgments used in estimating future cash flows and asset fair values, there may be additional exposure to future impairment losses that could be material to the Company’s results of operations. The Company recorded asset impairment charges of $1.2 million and $3.1 million during the three and nine months ended October 30, 2021, respectively. The Company recognized $0.7 million impairment on ROU assets primarily in Europe in the three and nine months ended October 30, 2021. The Company recognized $0.5 million and $2.4 million in impairment of property and equipment related to certain retail locations primarily in Europe and Asia during the three and nine months ended October 30, 2021, respectively. This compares to asset impairment charges of $10.3 million and $75.3 million during the three and nine months ended October 31, 2020, respectively. The Company recognized $5.6 million and $42.1 million in impairment of certain operating lease ROU assets primarily in North America and Europe during the three and nine months ended October 31, 2020, respectively. The Company recognized $4.7 million and $33.2 million in impairment of property and equipment related to certain retail locations primarily in North America, Europe and Asia driven by lower revenue and future cash flow projections from the ongoing effects of the COVID-19 pandemic during the three and nine months ended October 31, 2020, respectively. Refer to Note 2 for further information on impairment charges recognized on operating lease ROU assets. Goodwill Goodwill is tested annually for impairment or more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. This determination is made at the reporting unit level which may be either an operating segment or one level below an operating segment if discrete financial information is available. Two or more reporting units within an operating segment may be aggregated for impairment testing if they have similar economic characteristics. The COVID-19 pandemic materially impacted the Company’s businesses beginning in the first quarter of fiscal 2021. As a result, the Company concluded that a triggering event had occurred resulting in the need to perform quantitative interim impairment testing on the Company’s goodwill and flagship assets as of May 2, 2020. The testing concluded that the fair values of the respective reporting units exceeded their carrying amounts as of May 2, 2020. Accordingly, the Company did not record any asset impairment charges on its goodwill or flagship assets. In performing its assessment, the Company believed it made reasonable accounting estimates based on the facts and circumstances that were available as of the testing date in light of the evolving situation resulting from the COVID-19 pandemic. If actual results are not consistent with the assumptions and judgments used, there may be additional exposure to future impairment losses that could be material to the Company’s results of operations. The COVID-19 pandemic has continued to impact the Company’s businesses during the first nine months of fiscal 2022. During the three months ended October 30, 2021, the Company assessed qualitative factors and determined that it is not more likely than not that the fair values of its reporting units are less than their carrying amounts.
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments Hedging Strategy Foreign Exchange Currency Contracts The Company operates in foreign countries, which exposes it to market risk associated with foreign currency exchange rate fluctuations. The Company has entered into certain forward contracts to hedge the risk of foreign currency rate fluctuations. The Company has elected to apply the hedge accounting rules in accordance with authoritative guidance for certain of these hedges. The Company’s primary objective is to hedge the variability in forecasted cash flows due to the foreign currency risk. Various transactions that occur primarily in Europe, Canada, South Korea, China, Hong Kong and Mexico are denominated in U.S. dollars, British pounds and Russian roubles and thus are exposed to earnings risk as a result of exchange rate fluctuations when converted to their functional currencies. These types of transactions include U.S. dollar-denominated purchases of merchandise and U.S. dollar- and British pound-denominated intercompany liabilities. In addition, certain operating expenses, tax liabilities and pension-related liabilities are denominated in Swiss francs and are exposed to earnings risk as a result of exchange rate fluctuations when converted to the functional currency. Further, there are certain real estate leases that are denominated in a currency other than the functional currency of the respective entity that entered into the agreement (primarily Swiss francs, Russian roubles and Polish zloty). As a result, the Company may be exposed to volatility related to unrealized gains or losses on the translation of present value of future lease payment obligations when translated at the exchange rate as of a reporting period-end. The Company enters into derivative financial instruments, including forward exchange currency contracts, to offset some, but not all, of the exchange risk on certain of these anticipated foreign currency transactions. Periodically, the Company may also use foreign exchange currency contracts to hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries. Interest Rate Swap Agreements The Company is exposed to interest rate risk on its floating-rate debt. The Company has entered into interest rate swap agreements for certain of these agreements to effectively convert its floating-rate debt to a fixed-rate basis. The principal objective of these contracts is to eliminate or reduce the variability of the cash flows in interest payments associated with the Company’s floating-rate debt, thus reducing the impact of interest rate changes on future interest payment cash flows. The Company has elected to apply the hedge accounting rules in accordance with authoritative guidance for certain of these contracts. Refer to Note 9 for further information. The impact of the credit risk of the counterparties to the derivative contracts is considered in determining the fair value of the foreign exchange currency contracts and interest rate swap agreements. As of October 30, 2021, credit risk has not had a significant effect on the fair value of the Company’s foreign exchange currency contracts and interest rate swap agreements. Hedge Accounting Policy Foreign Exchange Currency Contracts U.S. dollar forward contracts are used to hedge forecasted merchandise purchases over specific months. Changes in the fair value of these U.S. dollar forward contracts, designated as cash flow hedges, are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in cost of product sales in the period that approximates the time the hedged merchandise inventory is sold. The Company may hedge forecasted intercompany royalties over specific months. Changes in the fair value of these U.S. dollar forward contracts, designated as cash flow hedges, are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in other income (expense) in the period in which the royalty expense is incurred. The Company has also used U.S. dollar forward contracts to hedge the net investments of certain of the Company’s international subsidiaries over specific months. Changes in the fair value of these U.S. dollar forward contracts, designated as net investment hedges, are recorded in foreign currency translation adjustment as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are not recognized in earnings (loss) until the sale or liquidation of the hedged net investment. The Company has also foreign exchange currency contracts that are not designated as hedging instruments for accounting purposes. Changes in fair value of foreign exchange currency contracts not designated as hedging instruments are reported in net earnings (loss) as part of other income (expense). Interest Rate Swap Agreements Interest rate swap agreements are used to hedge the variability of the cash flows in interest payments associated with the Company’s floating-rate debt. Changes in the fair value of interest rate swap agreements designated as cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are amortized to interest expense over the term of the related debt. Periodically, the Company may also enter into interest rate swap agreements that are not designated as hedging instruments for accounting purposes. Changes in the fair value of interest rate swap agreements not designated as hedging instruments are reported in net earnings (loss) as part of other income (expense). Summary of Derivative Instruments The fair value of derivative instruments in the condensed consolidated balance sheets is (in thousands):
Derivatives Designated as Hedging Instruments Foreign Exchange Currency Contracts Designated as Cash Flow Hedges During the nine months ended October 30, 2021, the Company purchased U.S. dollar forward contracts in Europe totaling US$132.0 million that were designated as cash flow hedges. As of October 30, 2021, the Company had forward contracts outstanding for its European operations of US$136.0 million to hedge forecasted merchandise purchases, which are expected to mature over the next 15 months. As of October 30, 2021, accumulated other comprehensive income (loss) related to foreign exchange currency contracts included a $3.6 million net unrealized gain, net of tax, of which $2.8 million will be recognized in cost of product sales over the following 12 months, at the then current values on a pre-tax basis, which can be different than the current quarter-end values. At January 30, 2021, the Company had forward contracts outstanding for its European operations of US$100.0 million that were designated as cash flow hedges. Interest Rate Swap Agreement Designated as Cash Flow Hedge As of October 30, 2021, accumulated other comprehensive income (loss) related to the interest rate swap agreement included a net unrealized loss of $0.3 million, net of tax, which will be recognized in interest expense over the following 12 months, at the then current values on a pre-tax basis, which can be different than the current quarter-end values. The following summarizes the gains (losses) before income taxes recognized on derivative instruments designated as cash flow hedges in OCI and net earnings (loss) (in thousands):
The following summarizes net after income tax derivative activity recorded in accumulated other comprehensive income (loss) (in thousands):
Foreign Exchange Currency Contracts Not Designated as Hedging Instruments As of October 30, 2021, the Company had euro foreign exchange currency contracts to purchase US$14.0 million expected to mature over the next one month. As of January 30, 2021, the Company had euro foreign exchange currency contracts to purchase US$19.0 million. The following summarizes the gains (losses) before income taxes recognized on derivative instruments not designated as hedging instruments in other income (expense) (in thousands):
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Subsequent Events |
9 Months Ended |
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Oct. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividends On November 23, 2021, the Company announced an increase to its regular quarterly cash dividend from $0.1125 to $0.225 per share on the Company’s common stock. The cash dividend will be paid on December 24, 2021 to shareholders of record as of the close of business on December 8, 2021. In connection with the increase to the quarterly cash dividend, the Company will adjust the conversion rate (which is expected to increase) and the conversion price (which is expected to decrease) of the convertible senior notes in accordance with the terms of the indenture governing the convertible senior notes, to be effective as of December 7, 2021. A corresponding adjustment is expected to be made to the strike prices with respect to the convertible note hedges and the warrants entered into by the Company in connection with the offering of the convertible senior notes, each of which will be decreased in accordance with the terms of the convertible note hedge confirmations and warrant confirmations, respectively.
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Basis of Presentation (Policies) |
9 Months Ended |
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Oct. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Financial Statements | Interim Financial StatementsIn the opinion of management, the accompanying unaudited condensed consolidated financial statements of the Company contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the condensed consolidated balance sheets as of October 30, 2021 and January 30, 2021, the condensed consolidated statements of income (loss), comprehensive income (loss), cash flows and stockholders’ equity for the three and nine months ended October 30, 2021 and October 31, 2020. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and the instructions to Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, they have been condensed and do not include all of the information and footnotes required by GAAP for complete financial statements. The results of operations and cash flows for the three and nine months ended October 30, 2021 are not necessarily indicative of the results of operations to be expected for the full fiscal year. |
Fiscal Periods | Fiscal Periods The three and nine months ended October 30, 2021 had the same number of days as the three and nine months ended October 31, 2020. All references herein to “fiscal 2022,” “fiscal 2021” and “fiscal 2020” represent the results of the 52-week fiscal years ending January 29, 2022, January 30, 2021 and February 1, 2020, respectively.
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COVID-19 Business Update | COVID-19 Business Update The coronavirus (“COVID-19”) pandemic is continuing to negatively impact the Company’s businesses. Although the Company achieved slightly higher net revenue during the third quarter of fiscal 2022 compared to the third quarter of fiscal 2020, the Company remained challenged by lower traffic and capacity restrictions. In addition, while the Company began the third quarter of fiscal 2022 with almost all its directly operated stores open for business, the Company started to incur a new round of government-mandated temporary store closures toward the end of the quarter. This resulted in the closure of a limited number of its directly operated stores as of October 30, 2021, mostly in Europe, the impact of which was minimal to its third quarter results. The COVID-19 crisis has also contributed to disruptions in the overall global supply chain, leading to industry-wide product delays and higher freight costs. The Company has been working actively to mitigate these headwinds to the extent possible through a number of global supply chain initiatives. In light of the fluid nature of the pandemic, the Company continues to carefully monitor global and regional developments, such as the recent spread of the Omicron variant, and respond appropriately. The Company also continues to strategically manage expenses in order to protect profitability and to mitigate, to the extent possible, the effect of the supply chain disruptions.
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Reclassifications | Reclassifications The Company has made certain reclassifications to prior period amounts to conform to the current period presentation within the accompanying condensed consolidated financial statements and notes to the condensed consolidated financial statements.
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Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosed in the accompanying notes. Significant areas requiring the use of management estimates relate to the allowances for doubtful accounts, sales return and markdown allowances, gift card and loyalty accruals, valuation of inventories, share-based compensation, income taxes, recoverability of deferred taxes, unrecognized tax benefits, the useful life of assets for depreciation and amortization, evaluation of asset impairment (including goodwill and long-lived assets, such as property and equipment and operating lease right-of-use (“ROU”) assets), pension obligations, workers’ compensation and medical self-insurance expense and accruals, litigation reserves and restructuring expense and accruals. Actual results could differ from those estimates. Revisions in estimates could materially impact the results of operations and financial position. The COVID-19 pandemic has materially impacted the Company’s results during the three and nine months ended October 30, 2021 and October 31, 2020. The Company’s operations could continue to be impacted in ways the Company is not able to predict today due to the evolving situation. While the Company believes it has made reasonable accounting estimates based on the facts and circumstances that were available as of the reporting date, to the extent there are differences between these estimates and actual results, the Company’s results of operations and financial position could be materially impacted.
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Revenue Recognition | Revenue Recognition The Company recognizes the majority of its revenue from its direct-to-consumer (brick-and-mortar retail stores and concessions as well as e-commerce) and wholesale distribution channels at a point in time when it satisfies a performance obligation and transfers control of the product to the respective customer. The Company also recognizes royalty revenue from its trademark license agreements. The Company’s trademark license agreements represent symbolic licenses that are dependent on the Company’s continued support over the term of the license agreement. The amount of revenue that is recognized from the licensing arrangements is based on sales-based royalty and advertising fund contributions as well as specific fixed payments, where applicable. The Company’s trademark license agreements customarily provide for a multi-year initial term ranging from to 15 years and may contain options to renew prior to expiration for an additional multi-year period. The unrecognized portion of upfront payments is included in deferred royalties in accrued expenses and other long-term liabilities depending on the short or long-term nature of the payments to be recognized.
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Allowance for Doubtful Accounts | Allowance for Doubtful Accounts In the normal course of business, the Company grants credit directly to certain wholesale customers after a credit analysis is performed based on financial and other criteria. Accounts receivable are recorded net of an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses that may result from the inability of its wholesale customers and licensing partners to make their required payments. The Company bases its allowances on analysis of the aging of accounts receivable at the date of the financial statements, assessments of historical and current collection trends, evaluation of the impact of current and future forecasted economic conditions and whether the Company has obtained credit insurance or other guarantees. Management performs regular evaluations concerning the ability of its customers and records a provision for doubtful accounts based on these evaluations. As of October 30, 2021, approximately 45% of the Company’s total net trade accounts receivable and 59% of its European net trade receivables were subject to credit insurance coverage, certain bank guarantees or letters of credit for collection purposes. The Company’s credit insurance coverage contains certain terms and conditions specifying deductibles and annual claim limits. Management evaluates the creditworthiness of the counterparties to the credit insurance, bank guarantees, and letters of credit and records a provision for the risk of loss on these instruments based on these evaluations as considered necessary.
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Recently Issued Accounting Guidance | Recently Issued Accounting Guidance In March 2020, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance to provide temporary optional expedients and exceptions related to contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Financial Oversight Rate (“SOFR”). This guidance may be adopted up to December 31, 2022. The Company is currently evaluating its election options and the impact on its consolidated financial statements and related disclosures. In August 2020, the FASB issued authoritative guidance to simplify the accounting for convertible instruments and contracts in an entity’s own equity and the diluted earnings per share computations for these instruments. This guidance removes major separation models required under current guidance which will enable more convertible debt instruments to be reported as a single liability instrument with no separate accounting for embedded conversion features. This guidance is effective for fiscal years beginning after December 31, 2021, which will be the Company’s first quarter of fiscal 2023, on either a full or modified retrospective basis. Early adoption is permitted for fiscal years beginning after December 31, 2020, which was the Company’s first quarter of fiscal 2022. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements and related disclosures. In May 2021, the FASB issued authoritative guidance to clarify and reduce diversity in accounting for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after modifications or exchanges based on the substance of the transactions. This guidance is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, which will be the Company’s first quarter of fiscal 2023. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements and related disclosures.
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Lease Accounting (Tables) |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and liabilities, lessee | The components of leases are (in thousands):
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Lease cost | The components of lease costs are (in thousands):
____________________________________________________________________ Notes: 1During the three and nine months ended October 30, 2021 and October 31, 2020, net (gains) losses on lease modifications related primarily to the early termination of lease agreements for certain of the Company’s retail locations. Operating lease costs for these retail locations prior to the early termination were included in cost of product sales. 2Amortization of leased assets related to finance leases are included in depreciation expense within cost of product sales or selling, general and administrative expenses depending on the nature of the asset in the Company’s condensed consolidated statements of income (loss). 3During the three and nine months ended October 30, 2021, variable lease costs included certain rent concessions of approximately $2.6 million and $14.5 million, respectively, received by the Company, primarily in Europe, related to the COVID-19 pandemic. During the three and nine months ended October 31, 2020, variable lease costs included certain rent concessions of approximately $8.0 million and $18.4 million, respectively, received by the Company, primarily in Europe, related to the COVID-19 pandemic.
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Operating lease liabilities maturity schedule | Maturities of the Company’s operating and finance lease liabilities as of October 30, 2021 are (in thousands):
______________________________________________________________________ Notes: 1Represents the maturity of lease liabilities for the remainder of fiscal 2022 and also includes rent payments that have been deferred due to the COVID-19 pandemic. This amount does not include payments made during the nine months ended October 30, 2021.
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Finance lease liabilities maturity schedule | Maturities of the Company’s operating and finance lease liabilities as of October 30, 2021 are (in thousands):
______________________________________________________________________ Notes: 1Represents the maturity of lease liabilities for the remainder of fiscal 2022 and also includes rent payments that have been deferred due to the COVID-19 pandemic. This amount does not include payments made during the nine months ended October 30, 2021.
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Other supplemental information | Other supplemental information is (dollars in thousands):
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Earnings (Loss) per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of basic and diluted net earnings (loss) per common share attributable to common stockholders | The computation of basic and diluted net earnings (loss) per common share attributable to common stockholders is (in thousands, except per share data):
Notes: 1For the nine months ended October 31, 2020, there were 397,099 of potentially dilutive shares that were not included in the computation of diluted weighted average common shares and common equivalent shares outstanding because their effect would have been antidilutive given the Company’s net loss.
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Stockholders' Equity (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of cash dividend declared per share | The following sets forth the cash dividend declared per share:
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Schedule of changes in accumulated other comprehensive income (loss), net of related income taxes | The changes in accumulated other comprehensive income (loss), net of related income taxes, are (in thousands):
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Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss) | Details on reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss) are (in thousands):
|
Accounts Receivable (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accounts receivable | Accounts receivable is summarized as follows (in thousands):
|
Inventories (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of inventories | Inventories consist of the following (in thousands):
|
Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of net revenue and earnings (loss) from operations by segment | Net revenue and earnings (loss) from operations are summarized (in thousands):
______________________________________________________________________ Notes: 1.During the three and nine months ended October 30, 2021 and October 31, 2020, the Company recognized asset impairment charges related primarily to impairment of certain operating lease ROU assets and impairment of property and equipment related to certain retail locations resulting from lower revenue and future cash flow projections from the ongoing effects of the COVID-19 pandemic and expected store closures. Refer to Note 2 and Note 15 for more information regarding these asset impairment charges. 2.During the three and nine months ended October 30, 2021 and October 31, 2020, amounts recorded represent net gains (losses) on lease modifications related primarily to the early termination of certain lease agreements.
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Summary of net revenue by country | The below presents information regarding geographic areas in which the Company operated. Net revenue is classified primarily based on the country where the Company’s customer is located (in thousands):
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Borrowings and Finance Lease Obligations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of borrowings and finance lease obligations | Borrowings and finance lease obligations are summarized (in thousands):
|
Convertible Senior Notes and Related Transactions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debt | The Notes consist of the following (in thousands):
______________________________________________________________________ Notes: 1Included in paid-in capital within stockholders’ equity on the condensed consolidated balance sheets and is net of debt issuance costs and deferred taxes.
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Share-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of share-based compensation expense recognized under all of the Company's stock plans | The following summarizes the share-based compensation expense recognized under all of the Company’s stock plans (in thousands):
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Schedule of activity for nonvested performance-based units | The following summarizes the activity for nonvested performance-based units during the nine months ended October 30, 2021:
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Schedule of activity for nonvested market-based units | The following summarizes the activity for nonvested market-based units during the nine months ended October 30, 2021:
____________________________________________________________________ Notes: 1As a result of the achievement of certain market-based vesting conditions, there were 41,955 shares that vested in addition to the original target number of shares granted in fiscal 2019.
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Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interest | A reconciliation of the total carrying amount of redeemable noncontrolling interests is (in thousands):
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Defined Benefit Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of net periodic defined benefit pension cost related to the Company's defined benefit plans | The components of net periodic defined benefit pension cost related to the Company’s defined benefit plans are (in thousands):
|
Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value hierarchy for assets and liabilities measured at fair value on a recurring basis | The following presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands):
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Derivative Financial Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of fair value of derivative instruments in the condensed consolidated balance sheets | The fair value of derivative instruments in the condensed consolidated balance sheets is (in thousands):
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Summary of gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings (loss) | The following summarizes the gains (losses) before income taxes recognized on derivative instruments designated as cash flow hedges in OCI and net earnings (loss) (in thousands):
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Summary of net after-tax derivative activity recorded in accumulated other comprehensive income (loss) | The following summarizes net after income tax derivative activity recorded in accumulated other comprehensive income (loss) (in thousands):
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Summary of gains (losses) before taxes recognized on the derivative instruments not designated as hedging instruments in other income (expense) | The following summarizes the gains (losses) before income taxes recognized on derivative instruments not designated as hedging instruments in other income (expense) (in thousands):
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Lease Accounting - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2021 |
Oct. 31, 2020 |
Oct. 30, 2021 |
Oct. 31, 2020 |
|
Lessee, Lease, Description [Line Items] | ||||
Lease not yet commenced | $ 20.3 | $ 20.3 | ||
Europe | ||||
Lessee, Lease, Description [Line Items] | ||||
Impairment on operating lease right-of-use assets | $ 0.7 | $ 0.7 | ||
North America and Europe | ||||
Lessee, Lease, Description [Line Items] | ||||
Impairment on operating lease right-of-use assets | $ 5.6 | $ 42.1 | ||
Retail Store | Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Percentage of annual sales volume used for incremental rent on certain retail location leases | 3.00% | |||
Retail Store | Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Percentage of annual sales volume used for incremental rent on certain retail location leases | 28.00% | |||
Retail Concession | Weighted Average | ||||
Lessee, Lease, Description [Line Items] | ||||
Percentage of annual sales volume used for incremental rent on certain retail location leases | 32.00% |
Lease Accounting - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands |
Oct. 30, 2021 |
Jan. 30, 2021 |
---|---|---|
Assets | ||
Operating | $ 706,161 | $ 764,804 |
Finance | 18,425 | 20,595 |
Total lease assets | $ 724,586 | $ 785,399 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Current: | ||
Operating | $ 209,072 | $ 222,800 |
Finance | 4,939 | 4,698 |
Noncurrent: | ||
Operating | 599,472 | 662,657 |
Finance | 15,122 | 17,365 |
Total lease liabilities | $ 828,605 | $ 907,520 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portion of borrowings and finance lease obligations | Current portion of borrowings and finance lease obligations |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt and finance lease obligations | Long-term debt and finance lease obligations |
Lease Accounting - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands |
Oct. 30, 2021 |
Jan. 30, 2021 |
---|---|---|
Finance Leases | ||
2022 | $ 1,607 | |
2023 | 5,911 | |
2024 | 5,796 | |
2025 | 3,864 | |
2026 | 2,959 | |
After 2026 | 2,995 | |
Total lease payments | 23,132 | |
Less: Interest | 3,071 | |
Finance lease obligations | 20,061 | $ 22,063 |
Total | ||
2022 | 86,535 | |
2023 | 198,918 | |
2024 | 168,456 | |
2025 | 123,313 | |
2026 | 91,295 | |
After 2026 | 240,563 | |
Total lease payments | 909,080 | |
Less: Interest | 80,475 | |
Total lease liabilities | 828,605 | $ 907,520 |
Non Related Parties | ||
Lessee, Lease, Description [Line Items] | ||
2022 | 82,693 | |
2023 | 185,312 | |
2024 | 154,744 | |
2025 | 112,165 | |
2026 | 81,444 | |
After 2026 | 201,303 | |
Total lease payments | 817,661 | |
Less: Interest | 66,551 | |
Present value of lease liabilities | 751,110 | |
Related Parties | ||
Lessee, Lease, Description [Line Items] | ||
2022 | 2,235 | |
2023 | 7,695 | |
2024 | 7,916 | |
2025 | 7,284 | |
2026 | 6,892 | |
After 2026 | 36,265 | |
Total lease payments | 68,287 | |
Less: Interest | 10,853 | |
Present value of lease liabilities | $ 57,434 |
Lease Accounting - Lease Term and Discount Rate (Details) |
Oct. 30, 2021 |
---|---|
Weighted-average remaining lease term | |
Operating leases | 6 years 1 month 6 days |
Finance leases | 4 years 4 months 24 days |
Weighted-average discount rate | |
Operating leases | 3.40% |
Finance leases | 6.80% |
Lease Accounting - Other Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Oct. 30, 2021 |
Oct. 31, 2020 |
|
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 167,444 | $ 133,776 |
New operating ROU assets obtained in exchange for lease liabilities | $ 99,603 | $ 49,810 |
Earnings (Loss) per Share - Other Narrative (Details) - $ / shares |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Apr. 30, 2019 |
Oct. 30, 2021 |
Oct. 31, 2020 |
Oct. 30, 2021 |
Oct. 31, 2020 |
|
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Antidilutive equity awards excluded from computation of diluted weighted average common shares (in shares) | 1,341,973 | 3,610,026 | 475,584 | 3,792,552 | |
Conversion price of convertible senior notes (in dollars per share) | $ 25.78 | $ 25.78 | |||
Warrants outstanding (in shares) | 11,600,000 | 11,600,000 | 11,600,000 | 11,600,000 | 11,600,000 |
Strike price of warrants (in dollars per share) | $ 46.88 | $ 46.88 | $ 46.88 | ||
Performance-based units | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Performance or market awards excluded from computation of EPS (in shares) | 465,590 | 525,875 | 465,590 | 525,875 |
Stockholders' Equity - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Oct. 30, 2021 |
Oct. 31, 2020 |
Aug. 01, 2020 |
Oct. 30, 2021 |
Oct. 31, 2020 |
Aug. 23, 2021 |
|
Class of Stock [Line Items] | ||||||
Share repurchases | $ 38,876,000 | |||||
Dividends per share (in dollars per share) | $ 0.1125 | $ 0.1125 | $ 0.3375 | $ 0.1125 | ||
Share Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Remaining purchase amount authorized | $ 200,000,000 | $ 200,000,000 | $ 47,800,000 | |||
Share repurchases (in shares) | 0 | 4,000,000 | 0 | 4,000,000 | ||
Share repurchases | $ 38,800,000 | $ 38,800,000 | ||||
Authorized amount for repurchase | $ 200,000,000 |
Stockholders' Equity - Cash Dividend Declared Per Share (Details) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2021 |
Oct. 31, 2020 |
Oct. 30, 2021 |
Oct. 31, 2020 |
|
Equity [Abstract] | ||||
Dividends per share (in dollars per share) | $ 0.1125 | $ 0.1125 | $ 0.3375 | $ 0.1125 |
Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Oct. 30, 2021 |
Jul. 31, 2021 |
May 01, 2021 |
Oct. 31, 2020 |
Aug. 01, 2020 |
May 02, 2020 |
Oct. 30, 2021 |
Oct. 31, 2020 |
|
Accumulated other comprehensive income (loss), net of tax | ||||||||
Beginning balance | $ 632,023 | $ 577,193 | $ 565,580 | $ 454,828 | $ 486,789 | $ 661,347 | $ 565,580 | $ 661,347 |
Net other comprehensive income (loss) | (3,896) | (2,952) | (10) | (1,238) | 23,452 | (17,018) | ||
Ending balance | 653,705 | 632,023 | 577,193 | 478,707 | 454,828 | 486,789 | 653,705 | 478,707 |
Foreign Currency Translation Adjustment | ||||||||
Accumulated other comprehensive income (loss), net of tax | ||||||||
Beginning balance | (113,728) | (105,970) | (121,119) | (137,289) | (105,970) | (137,289) | ||
Gains (losses) arising during the period | (7,283) | (2,209) | (15,041) | 13,961 | ||||
Reclassification to net earnings for (gains) losses realized | 0 | 0 | 0 | 0 | ||||
Net other comprehensive income (loss) | (7,283) | (2,209) | (15,041) | 13,961 | ||||
Ending balance | (121,011) | (113,728) | (123,328) | (121,119) | (121,011) | (123,328) | ||
Derivative Financial Instruments Designated as Cash Flow Hedges | ||||||||
Accumulated other comprehensive income (loss), net of tax | ||||||||
Beginning balance | (602) | (4,876) | (1,499) | 6,300 | (4,876) | 6,300 | ||
Gains (losses) arising during the period | 2,701 | 1,286 | 5,725 | (2,546) | ||||
Reclassification to net earnings for (gains) losses realized | 1,185 | (1,553) | 2,435 | (5,520) | ||||
Net other comprehensive income (loss) | 3,886 | (267) | 8,160 | (8,066) | ||||
Ending balance | 3,284 | (602) | (1,766) | (1,499) | 3,284 | (1,766) | ||
Defined Benefit Plans | ||||||||
Accumulated other comprehensive income (loss), net of tax | ||||||||
Beginning balance | (9,598) | (9,829) | (8,991) | (8,921) | (9,829) | (8,921) | ||
Gains (losses) arising during the period | 48 | (2) | 125 | (214) | ||||
Reclassification to net earnings for (gains) losses realized | 77 | 74 | 231 | 216 | ||||
Net other comprehensive income (loss) | 125 | 72 | 356 | 2 | ||||
Ending balance | (9,473) | (9,598) | (8,919) | (8,991) | (9,473) | (8,919) | ||
Accumulated Other Comprehensive Loss | ||||||||
Accumulated other comprehensive income (loss), net of tax | ||||||||
Beginning balance | (123,928) | (120,902) | (120,675) | (131,609) | (153,302) | (139,910) | (120,675) | (139,910) |
Gains (losses) arising during the period | (4,534) | (925) | (9,191) | 11,201 | ||||
Reclassification to net earnings for (gains) losses realized | 1,262 | (1,479) | 2,666 | (5,304) | ||||
Net other comprehensive income (loss) | (3,272) | (3,026) | (227) | (2,404) | 21,693 | (13,392) | (6,525) | 5,897 |
Ending balance | $ (127,200) | $ (123,928) | $ (120,902) | $ (134,013) | $ (131,609) | $ (153,302) | $ (127,200) | $ (134,013) |
Accounts Receivable (Details) - USD ($) $ in Thousands |
Oct. 30, 2021 |
Jan. 30, 2021 |
---|---|---|
Accounts receivable | ||
Accounts receivable, gross | $ 333,513 | $ 328,347 |
Less allowances | 12,217 | 14,200 |
Accounts receivable, net | 321,296 | 314,147 |
Trade | ||
Accounts receivable | ||
Accounts receivable, gross | 290,758 | 288,782 |
Royalty | ||
Accounts receivable | ||
Accounts receivable, gross | 33,414 | 20,565 |
Other | ||
Accounts receivable | ||
Accounts receivable, gross | $ 9,341 | $ 19,000 |
Inventories (Details) - USD ($) $ in Thousands |
Oct. 30, 2021 |
Jan. 30, 2021 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 440 | $ 53 |
Work in progress | 0 | 43 |
Finished goods | 482,035 | 389,048 |
Inventories | 482,475 | 389,144 |
Allowance to write down inventories to the lower of cost or net realizable value | $ 33,500 | $ 35,500 |
Borrowings and Finance Lease Obligations - Summary of Borrowings and Finance Lease Obligations (Details) - USD ($) $ in Thousands |
Oct. 30, 2021 |
Jan. 30, 2021 |
---|---|---|
Debt Instrument [Line Items] | ||
Term loans | $ 52,316 | $ 56,765 |
Finance lease obligations | 20,061 | 22,063 |
Mortgage debt | 18,021 | 18,507 |
Borrowings under credit facilities | 7,116 | 7,332 |
Other | 2,902 | 2,597 |
Current portion of borrowings and finance lease obligations | 32,960 | 38,710 |
Long-term debt and finance lease obligations | 67,456 | 68,554 |
Long-term debt and finance lease liabilities, excluding convertible senior notes | ||
Debt Instrument [Line Items] | ||
Total debt and finance lease obligations | 100,416 | 107,264 |
Current portion of borrowings and finance lease obligations | 32,960 | 38,710 |
Long-term debt and finance lease obligations | $ 67,456 | $ 68,554 |
Convertible Senior Notes and Related Transactions - Components of Debt (Details) - Senior Notes - 2.00% Convertible Senior Notes Due 2024 - USD ($) $ in Thousands |
Oct. 30, 2021 |
Jan. 30, 2021 |
---|---|---|
Debt Instrument [Line Items] | ||
Principal | $ 300,000 | $ 300,000 |
Unamortized debt discount | (30,280) | (38,623) |
Unamortized issuance costs | (2,121) | (2,763) |
Net carrying amount | 267,599 | 258,614 |
Equity component, net | $ 42,320 | $ 42,320 |
Share-Based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2021 |
Oct. 31, 2020 |
Oct. 30, 2021 |
Oct. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 6,206 | $ 4,740 | $ 15,068 | $ 14,529 |
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 33 | 41 | 171 | 254 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 862 | 1,006 | 2,676 | 2,521 |
Stock awards/units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 5,311 | $ 3,693 | $ 12,221 | $ 11,754 |
Related Party Transactions (Details) - Marciano Entities $ in Millions |
9 Months Ended | |||
---|---|---|---|---|
Oct. 30, 2021
USD ($)
lease
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Oct. 31, 2020
USD ($)
|
Jan. 30, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Related Party Transactions | ||||
Number of leases under related party lease agreements | lease | 4 | |||
Privately-Held Men's Footwear Company | ||||
Related Party Transactions | ||||
Minority interest | 30.00% | |||
Ownership percentage held by related party | 45.00% | |||
Line of credit provided | $ 2.0 | |||
Interest rate for line of credit provided (in percent) | 2.75% | |||
Outstanding borrowings on line of credit provided | $ 0.2 | $ 0.2 | ||
Related party leases | ||||
Related Party Transactions | ||||
Expenses under related party arrangement | 6.4 | $ 4.1 | ||
Payments for aircraft charter | ||||
Related Party Transactions | ||||
Payments under related party transactions | $ 2.8 | $ 2.0 |
Commitments and Contingencies - Investment Commitments (Details) - Oct. 30, 2021 € in Millions, $ in Millions |
EUR (€) |
USD ($) |
---|---|---|
Private equity fund | ||
Investment commitments | ||
Unfunded commitment to invest in private equity fund | € 1.0 | $ 1.2 |
Commitments and Contingencies - Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Oct. 30, 2021 |
Oct. 30, 2021 |
Oct. 31, 2020 |
Jan. 30, 2021 |
Feb. 01, 2020 |
|
Loss Contingencies [Line Items] | |||||
Redeemable noncontrolling interests | $ 9,751 | $ 9,751 | $ 3,740 | $ 3,920 | $ 4,731 |
Redeemable noncontrolling interest redemption value adjustment | $ (5,654) | $ 5,654 | $ 0 | ||
Guess Brazil | |||||
Loss Contingencies [Line Items] | |||||
Ownership percentage | 40.00% | 40.00% | |||
Guess CIS | |||||
Loss Contingencies [Line Items] | |||||
Ownership percentage by parent | 30.00% | 30.00% | |||
Guess Brazil | |||||
Loss Contingencies [Line Items] | |||||
Redeemable noncontrolling interests | $ 400 | $ 400 | 900 | ||
Guess CIS | |||||
Loss Contingencies [Line Items] | |||||
Redeemable noncontrolling interests | $ 9,400 | $ 9,400 | $ 3,000 |
Commitments and Contingencies - Reconciliation of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Oct. 30, 2021 |
Oct. 30, 2021 |
Oct. 31, 2020 |
|
Redeemable Noncontrolling Interest [Roll Forward] | |||
Beginning balance | $ 3,920 | $ 4,731 | |
Redeemable noncontrolling interest redemption value adjustment | $ (5,654) | 5,654 | 0 |
Foreign currency translation adjustment | 177 | (991) | |
Ending balance | $ 9,751 | $ 9,751 | $ 3,740 |
Defined Benefit Plans - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Oct. 30, 2021 |
Oct. 31, 2020 |
Oct. 30, 2021 |
Oct. 31, 2020 |
Jan. 30, 2021 |
|
SERP | |||||
Defined Benefit Plans | |||||
SERP benefit payments | $ 0.5 | $ 0.4 | $ 1.4 | $ 1.3 | |
SERP | Other income (expense) | |||||
Defined Benefit Plans | |||||
Gain (loss) as a result of changes in value of the insurance policy investments, included in other income (expense) | 0.1 | $ (0.3) | 2.3 | $ 1.7 | |
Foreign Pension Plans | Foreign Plan | |||||
Defined Benefit Plans | |||||
Projected benefit obligation | 40.4 | 40.4 | $ 41.5 | ||
Plan assets at fair value | 34.1 | 34.1 | 35.0 | ||
Other assets | SERP | |||||
Defined Benefit Plans | |||||
Cash surrender values of the insurance policies held in a rabbi trust | 73.0 | 73.0 | 72.1 | ||
Accrued expenses and other long-term liabilities | SERP | |||||
Defined Benefit Plans | |||||
Projected benefit obligation | 51.7 | 51.7 | 52.3 | ||
Other long-term liabilities | Foreign Pension Plans | Foreign Plan | |||||
Defined Benefit Plans | |||||
Net liability | $ 6.3 | $ 6.3 | $ 6.4 |
Derivative Financial Instruments - Derivative Activity in AOCI (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2021 |
Oct. 31, 2020 |
Oct. 30, 2021 |
Oct. 31, 2020 |
|
Accumulated Other Comprehensive Income, Derivatives Qualifying as Hedges, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 632,023 | $ 454,828 | $ 565,580 | $ 661,347 |
Ending balance | 653,705 | 478,707 | 653,705 | 478,707 |
Derivative Financial Instruments Designated as Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income, Derivatives Qualifying as Hedges, Net of Tax [Roll Forward] | ||||
Beginning balance | (602) | (1,499) | (4,876) | 6,300 |
Net gains (losses) from changes in cash flow hedges | 2,701 | 1,286 | 5,725 | (2,546) |
Net (gains) losses reclassified into earnings (loss) | 1,185 | (1,553) | 2,435 | (5,520) |
Ending balance | $ 3,284 | $ (1,766) | $ 3,284 | $ (1,766) |
Derivative Financial Instruments - Derivative Instruments Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2021 |
Oct. 31, 2020 |
Oct. 30, 2021 |
Oct. 31, 2020 |
|
Foreign exchange currency contracts | Other income (expense) | ||||
Derivatives not designated as hedging instruments: | ||||
Foreign exchange currency contracts | $ 360 | $ 506 | $ 916 | $ (3,112) |
Subsequent Events (Details) - $ / shares |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Nov. 23, 2021 |
Oct. 30, 2021 |
Oct. 31, 2020 |
Oct. 30, 2021 |
Oct. 31, 2020 |
|
Subsequent Event | |||||
Dividends per share (in dollars per share) | $ 0.1125 | $ 0.1125 | $ 0.3375 | $ 0.1125 | |
Subsequent Event | |||||
Subsequent Event | |||||
Dividends per share (in dollars per share) | $ 0.225 |
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