0001564590-20-054750 | 10-Q | XBRL Viewer

142

Restricted stock units (RSUs) granted for achievement of performance-based compensation, reclassified from liability to equity

414

304

Issuance of common stock, upon RSUs release (in shares)

$ 4

(4)

374

Shares withheld for taxes related to net share settlement of RSUs

$ (192)

(192)

Shares withheld for taxes related to net share settlement of RSUs (in shares)

(78)

Accounting Standards Update [Extensible List]

us-gaap:AccountingStandardsUpdate201602Member

$ 150

150

(24)

Ending Balance at May. 04, 2019

(3,081)

61,629

$ 626

311,057

$ (92,658)

(151,339)

(6,057)

Ending Balance (in shares) at May. 04, 2019

62,576

(12,755)

Beginning Balance at Feb. 02, 2019

58,640

$ 5,276

$ 622

310,393

$ (92,658)

(153,534)

$ 5,276

(6,183)

Beginning Balance (in shares) at Feb. 02, 2019

62,242

(12,755)

Recognition of accumulated foreign currency translation adjustment

^[1]

792

Ending Balance at Nov. 02, 2019

(10,233)

56,739

$ 630

312,293

$ (92,658)

(158,491)

(5,035)

Ending Balance (in shares) at Nov. 02, 2019

63,044

(12,755)

Beginning Balance at May. 04, 2019

61,629

$ 626

311,057

$ (92,658)

(151,339)

(6,057)

Beginning Balance (in shares) at May. 04, 2019

62,576

(12,755)

142

514

Issuance of common stock, upon RSUs release (in shares)

$ 1

(1)

Shares withheld for taxes related to net share settlement of RSUs

(6)

Shares withheld for taxes related to net share settlement of RSUs (in shares)

(3)

Cancellation of restricted stock, shares

(20)

142

(40)

Ending Balance at Aug. 03, 2019

62,419

$ 627

311,706

$ (92,658)

(151,301)

(5,955)

Ending Balance (in shares) at Aug. 03, 2019

62,668

(12,755)

142

494

Issuance of common stock, upon RSUs release (in shares)

$ 3

(3)

348

Shares withheld for taxes related to net share settlement of RSUs

(46)

Shares withheld for taxes related to net share settlement of RSUs (in shares)

(30)

145

Recognition of accumulated foreign currency translation adjustment

(17)

792

^[1]

Ending Balance at Nov. 02, 2019

(7,190)

56,739

$ 630

312,293

$ (92,658)

(158,491)

(5,035)

Ending Balance (in shares) at Nov. 02, 2019

63,044

(12,755)

Beginning Balance at Feb. 01, 2020

58,423

$ 633

312,933

$ (92,658)

(156,054)

(6,431)

Beginning Balance (in shares) at Feb. 01, 2020

63,297

(12,755)

149

$ 1

148

452

Issuance of common stock, upon RSUs release (in shares)

$ 4

(4)

437

242

(34)

Ending Balance at May. 02, 2020

(41,726)

17,506

$ 638

313,529

$ (92,658)

(197,780)

(6,223)

Ending Balance (in shares) at May. 02, 2020

63,833

(12,755)

Beginning Balance at Feb. 01, 2020

58,423

$ 633

312,933

$ (92,658)

(156,054)

(6,431)

Beginning Balance (in shares) at Feb. 01, 2020

63,297

(12,755)

Ending Balance at Oct. 31, 2020

(59,462)

1,057

$ 643

314,316

$ (92,658)

(215,516)

(5,728)

Ending Balance (in shares) at Oct. 31, 2020

64,324

(12,755)

Beginning Balance at May. 02, 2020

17,506

$ 638

313,529

$ (92,658)

(197,780)

(6,223)

Beginning Balance (in shares) at May. 02, 2020

63,833

(12,755)

345

253

(5)

Ending Balance at Aug. 01, 2020

(10,714)

7,385

$ 638

313,874

$ (92,658)

(208,494)

(5,975)

Ending Balance (in shares) at Aug. 01, 2020

63,841

(12,755)

120

$ 3

117

252

326

Issuance of common stock, upon RSUs release (in shares)

$ 1

(1)

131

Deferred stock vested

$ 1

100

247

Ending Balance at Oct. 31, 2020

(7,022)

$ 1,057

$ 643

$ 314,316

$ (92,658)

$ (215,516)

$ (5,728)

Ending Balance (in shares) at Oct. 31, 2020

64,324

(12,755)

[1]

In connection with the Company’s closing its Rochester Clothing store in London, England and exiting its London operations, the Company recognized the accumulated foreign currency translation adjustment as an expense, which was included in “Exit costs associated with London operations” on the Consolidated Statement of Operations for the three and nine months ended November 2, 2019.

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2020	Nov. 02, 2019
Cash flows from operating activities:
Net loss	$ (59,462)	$ (10,233)
Adjustments to reconcile net loss to net cash used for operating activities:
Recognition of accumulated foreign currency translation adjustment		792
Amortization of deferred debt issuance costs	108	104
Impairment of assets	15,200
Depreciation and amortization	16,374	18,877
Stock compensation expense	1,123	1,422
Board of directors stock compensation	269	426
Changes in operating assets and liabilities:
Accounts receivable	997	544
Inventories	7,522	(13,374)
Prepaid expenses and other current assets	5,348	(100)
Other assets	675	(352)
Accounts payable	(3,183)	(7,380)
Operating leases, net	763	(2,992)
Accrued expenses and other liabilities	5,631	(2,138)
Net cash used for operating activities	(8,635)	(14,404)
Cash flows from investing activities:
Additions to property and equipment, net	(2,938)	(10,973)
Net cash used for investing activities	(2,938)	(10,973)
Cash flows from financing activities:
Net borrowings under credit facility	28,677	26,215
Debt issuance costs associated with credit facility amendment	(25)
Tax withholdings paid related to net share settlements of RSUs		(244)
Net cash provided by financing activities	28,652	25,971
Net increase in cash and cash equivalents	17,079	594
Cash and cash equivalents:
Beginning of period	4,338	4,868
End of period	$ 21,417	$ 5,462

Basis of Presentation

9 Months Ended

Oct. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation

1. Basis of Presentation

In the opinion of management of Destination XL Group, Inc., a Delaware corporation (collectively with its subsidiaries, referred to as the “Company”), the accompanying unaudited Consolidated Financial Statements contain all adjustments necessary for a fair presentation of the interim financial statements. These financial statements do not include all disclosures associated with annual financial statements and, accordingly, should be read in conjunction with the notes to the Company’s audited Consolidated Financial Statements for the fiscal year ended February 1, 2020 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 19, 2020.

The information set forth in these statements may be subject to normal year-end adjustments. The information reflects all adjustments that, in the opinion of management, are necessary to present fairly the Company’s results of operations, financial position and cash flows for the periods indicated. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s business historically has been seasonal in nature, and the results of the interim periods presented are not necessarily indicative of the results to be expected for the full year.

The Company’s fiscal year is a 52- or 53- week period ending on the Saturday closest to January 31. Fiscal 2020 and fiscal 2019 are 52-week periods ending on January 30, 2021 and February 1, 2020, respectively.

Impact of COVID-19 Pandemic on Business

On March 11, 2020, the World Health Organization declared the current outbreak of a novel coronavirus disease (“COVID-19”) as a global pandemic. The COVID-19 pandemic has had an adverse effect on the Company’s operations, employees, distribution and logistics, its vendors and customers. All of the Company’s store locations were closed temporarily on March 17, 2020. The Company began reopening stores in late April and by the end of June 2020 all retail stores had been reopened. While all of the Company’s stores are open, they are operating with reduced operating hours and it has been and may continue to be necessary to close and re-open stores in response to any ongoing COVID concerns.

In response to the uncertainty that exists relating to the COVID-19 pandemic, the Company has taken significant precautionary measures to reduce expenses, preserve liquidity, and mitigate the adverse impact of the pandemic to the Company. The majority of the Company’s workforce was furloughed in March 2020. As store locations were reopened, employees were gradually brought back, however, due to the reduced store traffic and sales, the Company’s field organization has been reduced by 1,078 associates, or 54%, since March 2020. For the safety of its employees, employees at the Company’s headquarters will continue to work from home, where possible, until at least July 2021. For store personnel and roles that require employees to be on-site, such as its distribution center, the Company is providing protective equipment, practicing social distancing and has increased sanitizing standards. The management team (director-level and above) took a temporary salary reduction ranging from 10%-20% during the period April 5, 2020 through August 2, 2020 and the Company’s non-employee directors suspended their second quarter fiscal 2020 compensation.

In March 2020, as a proactive measure, the Company drew $30.0 million under its revolving facility in order to increase the Company’s cash position and preserve financial flexibility. In addition, in April 2020 the Company entered into an amendment to its credit facility to, among other things, increase its borrowing base availability and permit the Company the ability to enter into promissory notes with its merchandise vendors. See Note 3, Debt, for a discussion of the amendment. During the second quarter of fiscal 2020, the Company entered into rent concessions with the majority of its landlords, in the form of rent abatements, rent deferments and, to a lesser extent, lease term extensions. See Note 4, Leases, for more discussion. Further, since early March, the Company has taken proactive steps to manage cash by substantially eliminating capital spend, negotiating deferred payment terms with vendors and, in limited cases, entering into short term notes, reducing operating expenses and cancelling purchase orders for merchandise, where possible.

Subsequent to the end of the third quarter, on November 2, 2020 the Company implemented an additional corporate restructuring to further align its cost structure with the potential continuation of reduced sales levels. The Company eliminated an additional 45 corporate positions, terminated certain service agreements, eliminated certain professional services and reduced its marketing costs. In aggregate, the Company’s corporate workforce has been reduced by 101 positions, or 29%, since March 2020. The Company expects that these additional steps will result in annualized savings of $9.7 million, of which $3.8 million is related to the reduction in corporate payroll. The Company expects to incur an aggregate cash charge in the fourth quarter of fiscal 2020 of approximately $0.5

million for employee severance and one-time termination benefits. The Company intends to proceed cautiously and continue to take proactive steps to manage its liquidity.

Segment Information

The Company has three principal operating segments: its stores, direct and wholesale businesses. The Company considers its stores and direct operating segments to be similar in terms of economic characteristics, production processes and operations, and has therefore aggregated them into one reportable segment, retail segment, consistent with its omni-channel business approach. Due to the immateriality of the wholesale segment’s revenues, profits and assets, its operating results are aggregated with the retail segment for both periods.

Intangibles

In fiscal 2018, the Company purchased the rights to the domain name “dxl.com.” The domain name has a carrying value of $1.2 million and is considered an indefinite-lived asset. Due to the significant impact of the COVID-19 pandemic on the Company’s business, the Company performed a qualitative review of the domain name as of May 2, 2020, August 1, 2020 and October 31, 2020, and concluded at each date that it was more likely than not that the intangible asset was not impaired and therefore no quantitative assessment was required. During the fourth quarter of fiscal 2020, the Company will perform a similar qualitative review as part of annual impairment testing.

Accounts Payable

During the first nine months of fiscal 2020, the Company received extended payment terms with certain of its merchandise vendors, by entering into short-term notes. The short-term notes, totaling $3.5 million, have terms of less than one-year and accrue interest at an annual rate of 4.0%, with payments due monthly. At October 31, 2020, the outstanding balance of the notes was $1.3 million and is included in Accounts Payable on the Consolidated Balance Sheet.

Fair Value of Financial Instruments

ASC Topic 825, Financial Instruments, requires disclosure of the fair value of certain financial instruments. ASC Topic 820, “Fair Value Measurements and Disclosures,” defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements.

The valuation techniques utilized are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities.

The Company utilizes observable market inputs (quoted market prices) when measuring fair value whenever possible.

The fair value of long-term debt is classified within Level 2 of the valuation hierarchy. At October 31, 2020, the fair value approximated the carrying amount based upon terms available to the Company for borrowings with similar arrangements and remaining maturities.

The fair value of the “dxl.com” domain name, an indefinite-lived asset, is measured on a non-recurring basis in connection with the Company’s annual impairment test and is classified within Level 3 of the valuation hierarchy. See Intangibles above.

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and short-term borrowings approximate fair value because of the short maturity of these instruments.

Accumulated Other Comprehensive Income (Loss) - (“AOCI”)

Other comprehensive income (loss) includes amounts related to foreign currency and pension plans and is reported in the Consolidated Statements of Comprehensive Income (Loss). Other comprehensive income (loss) and reclassifications from AOCI for the three and nine months ended October 31, 2020 and November 2, 2019, respectively, were as follows:

	October 31, 2020								November 2, 2019
For the three months ended:	(in thousands)
	Pension Plans			Foreign Currency		Total			Pension Plans			Foreign Currency			Total
Balance at beginning of the quarter	$	(5,983	)	$	8	$	(5,975	)	$	(5,229	)	$	(726	)	$	(5,955	)

Other comprehensive income (loss) before reclassifications, net of taxes		77			—		77			27			(17	)		10

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

Amounts reclassified from accumulated other comprehensive income, net of taxes ⁽²⁾		170			—		170			118			—			118

Other comprehensive income (loss) for the period		247			—		247			145			775			920

Balance at end of quarter	$	(5,736	)	$	8	$	(5,728	)	$	(5,084	)	$	49		$	(5,035	)

	October 31, 2020									November 2, 2019
For the nine months ended:	(in thousands)
	Pension Plans			Foreign Currency			Total			Pension Plans			Foreign Currency			Total
Balance at beginning of fiscal year	$	(6,478	)	$	47		$	(6,431	)	$	(5,521	)	$	(662	)	$	(6,183	)

Other comprehensive income (loss) before reclassifications, net of taxes		231			(39	)		192			82			(81	)		1

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

Amounts reclassified from accumulated other comprehensive income, net of taxes ⁽²⁾		511			—			511			355			—			355

Other comprehensive income (loss) for the period		742			(39	)		703			437			711			1,148

Balance at end of quarter	$	(5,736	)	$	8		$	(5,728	)	$	(5,084	)	$	49		$	(5,035	)

(1)

(2)

Includes the amortization of the unrecognized loss on pension plans, which was charged to “Selling, General and Administrative” Expense on the Consolidated Statements of Operations for all periods presented. The amortization of the unrecognized loss, before tax, was $170,000 and $160,000 for the three-month period ended October 31, 2020 and November 2, 2019, respectively, and $511,000 and $481,000 for the nine-month period ended October 31, 2020 and November 2, 2019, respectively. As a result of the adoption of ASU 2019-12, as discussed below, there was no tax provision for the third quarter and first nine months of fiscal 2020. The tax effect for the third quarter and first nine months of fiscal 2019 was $42,000 and $126,000, respectively.

Stock-based Compensation

All share-based payments, including grants of employee stock options and restricted stock, are recognized as an expense in the Consolidated Statements of Operations based on their fair values and vesting periods. The fair value of stock options is determined using the Black-Scholes valuation model and requires the input of subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (the “expected term”), the estimated volatility of the Company’s common stock price over the expected term and the number of options that will ultimately not complete their vesting requirements (“forfeitures”). The Company reviews its valuation assumptions at each grant date and, as a result, is likely to change its valuation assumptions used to value employee stock-based awards granted in future periods. The values derived from using the Black-Scholes model are recognized as an expense over the vesting period, net of estimated forfeitures. The estimation of stock-based awards that will ultimately vest requires judgment. Actual results and future changes in estimates may differ from the Company’s current estimates.

The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model based on the assumptions in the table below as it relates to stock options granted during the first nine months of fiscal 2020. There were no grants of stock options during the first nine months of fiscal 2019.

For the nine months ended:	October 31, 2020
Expected volatility	82.3% - 87.8%
Risk-free interest rate	0.22% - 0.27%
Expected life	3.0 - 4.0 yrs.
Dividend rate		—
Weighted average fair value of options granted	$0.32

The Company has outstanding performance stock units (PSUs) with a market condition. The respective grant-date fair value and derived service periods assigned to the PSUs were determined using a Monte Carlo model. The valuation included assumptions with respect to the Company’s historical volatility, risk-free rate and cost of equity.

Impairment of Long-Lived Assets

The Company reviews its long-lived assets for events or changes in circumstances that might indicate the carrying amount of the assets may not be recoverable. The Company assesses the recoverability of the assets by determining whether the carrying value of such assets over their respective remaining lives can be recovered through projected undiscounted future cash flows. The amount of impairment, if any, is measured based on projected discounted future cash flows using a discount rate reflecting the Company’s average cost of funds.

As a result of the significant impact of the COVID-19 pandemic on the Company’s business during the first quarter of fiscal 2020 and the continued uncertainty, the Company reassessed the recoverability of the carrying value for its long-lived assets as of May 2, 2020, assuming that its stores would gradually open throughout the second quarter of fiscal 2020 but that consumer retail spending will remain substantially curtailed for a period of time. Due to uncertainty around the duration and extent of the pandemic’s impact on future cash flows, the Company’s projections were based on multiple probability-weighted scenarios. Based on the results of that assessment, the Company recorded an impairment charge of $16.3 million in the first quarter of fiscal 2020. The impairment charge included approximately $12.5 million for the write-down of certain right-of-use assets and $3.8 million for the write-down of property and equipment, related to stores where the carrying value exceeded fair value.

During the third quarter of fiscal 2020, the Company recorded a $1.2 million non-cash gain on the reduction of its operating lease liability in connection with its decision to close three retail stores, which resulted in a revaluation of the lease liability. Approximately $1.1 million of this gain related to two leases where the right-of-use assets had previously been impaired and, therefore, is included as a reduction in the impairment charge for the three and nine months ended October 31, 2020. The remaining gain of $0.1 million is included as an offset to store occupancy costs.

There was no material impairment of long-lived assets in the first nine months of fiscal 2019.

Leases

The Company adopted ASU 2016-02, “Leases (Topic 842)” in the first quarter of fiscal 2019 on a modified retrospective basis and applied the new standard to all leases through a cumulative-effect adjustment to beginning accumulated deficit.

Under ASC 842, the Company determines if an arrangement contains a lease at the inception of a contract. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments, initial direct costs and any lease incentives are included in the value of those right-of use assets. As the interest rate implicit in the Company’s leases is not readily determinable, the Company

utilizes its incremental borrowing rate, based on information available at the lease measurement date to determine the present value of future payments. The Company elected the lessee non-lease component separation practical expedient, which permits the Company to not separate non-lease components from the lease components to which they relate. The Company also made an accounting policy election that the recognition requirement of ASC 842 will not be applied to certain, if any, non-store leases, with a term of 12 months or less, recognizing those lease payments on a straight-line basis over the lease term. At October 31, 2020, the Company had no short-term leases.

The Company’s store leases typically contain options that permit renewals for additional periods of up to five years each. In general, for store leases with an initial term of 10 years or more, the options to extend are not considered reasonably certain at lease commencement. For stores leases with an initial term of 5 years, the Company evaluates each lease independently and, only when the Company considers it reasonably certain that it will exercise an option to extend, will the associated payment of that option be included in the measurement of the right-of-use asset and lease liability. Renewal options are not included in the lease term for automobile and equipment leases because they are not considered reasonably certain of being exercised at lease commencement. Renewal options were not considered for the Company’s corporate headquarters and distribution center lease, which was entered into in 2006 and was for an initial 20-year term. At the end of the initial term, the Company will have the opportunity to extend this lease for six additional successive periods of five years.

For store leases, the Company accounts for lease components and non-lease components as a single lease component. Certain store leases may require additional payments based on sales volume, as well as reimbursement for real estate taxes, common area maintenance and insurance, and are expensed as incurred as variable lease costs. Other store leases contain one periodic fixed lease payment that includes real estate taxes, common area maintenance and insurance. These fixed payments are considered part of the lease payment and included in the right-of-use assets and lease liabilities. Tenant allowances are included as an offset to the right-of-use asset and amortized as reductions to rent expense over the associated lease term.

See Note 4 ‘‘Leases’’ for additional information.

Recently Adopted Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, “Financial Instruments — Credit Losses (Topic 326) — Measurement of Credit Losses on Financial Instruments.” This guidance amends several aspects of the measurement of credit losses on financial instruments, including trade receivables. Topic 326 replaces the existing incurred credit loss model with an impairment model (known as the current expected credit loss ("CECL") model), which is based on expected losses rather than incurred losses. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted this standard in the first quarter of fiscal 2020 and it did not have a material impact on the Company’s Consolidated Financial Statements.

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” This guidance modifies the disclosure requirements on fair value measurements in Topic 820 by removing disclosures regarding transfers between Level 1 and Level 2 of the fair value hierarchy, by modifying the measurement uncertainty disclosure, and by requiring additional disclosures for Level 3 fair value measurements, among others. The Company adopted this standard in the first quarter of fiscal 2020 with new disclosures adopted on a prospective basis. The adoption of this standard did not have a material impact on the Company’s Consolidated Financial Statements and related disclosures.

In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740, Income Taxes, while also clarifying and amending existing guidance, including interim-period accounting for enacted changes in tax law. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. In the first quarter of fiscal 2020, the Company elected early adoption of ASU 2019-12. The provisions related to intra period tax allocation and interim recognition of enactment of tax laws are being adopted on a prospective basis. The effect of the adoption of ASU 2019-12 was not material to the Company's Consolidated Financial Statements.

Recently Issued Accounting Pronouncements

No new accounting pronouncements, issued or effective during the first nine months of fiscal 2020, have had or are expected to have a significant impact on the Company’s Consolidated Financial Statements.

Revenue Recognition

9 Months Ended

Oct. 31, 2020

Revenue From Contract With Customer [Abstract]

Revenue Recognition

2. Revenue Recognition

The Company operates as a retailer of big and tall men’s clothing, which includes stores, direct and wholesale. Revenue is recognized by the operating segment that initiates a customer’s order. Store sales are defined as sales that originate and are fulfilled directly at the store level. Direct sales are defined as sales that originate online, including those initiated online at the store level, on its website or on third-party marketplaces. Wholesale sales are defined as sales made to wholesale customers pursuant to the terms of each customer’s contract with the Company. Generally, all revenues are recognized when control of the promised goods is transferred to customers, in an amount that reflects the consideration in exchange for those goods. Sales tax collected from customers and remitted to taxing authorities is excluded from revenue and is included as part of accrued expenses on the Consolidated Balance Sheets.

Revenue from the Company’s store operations is recorded upon purchase of merchandise by customers, net of an allowance for sales returns, which is estimated based upon historical experience.

Revenue from the Company’s direct operations is recognized at the time a customer order is delivered, net of an allowance for sales returns, which is estimated based upon historical experience.

Revenue from the Company’s wholesale operations is recognized at the time the wholesale customer takes physical receipt of the merchandise, net of any identified discounts in accordance with each individual order. For the first nine months of fiscal 2020 and fiscal 2019, chargebacks were immaterial.

Unredeemed Gift Cards, Gift Certificates, and Credit Vouchers. Upon issuance of a gift card, gift certificate, or credit voucher, a liability is established for its cash value. The liability is relieved and net sales are recorded upon redemption by the customer. Based on historical redemption patterns, the Company can reasonably estimate the amount of gift cards, gift certificates, and credit vouchers for which redemption is remote, which is referred to as “breakage”. Breakage is recognized over two years in proportion to historical redemption trends and is recorded as sales in the Consolidated Statements of Operations. The gift card liability, net of breakage, was $1.9 million and $2.7 million at October 31, 2020 and February 1, 2020, respectively.

Unredeemed Loyalty Coupons. The Company offers a free loyalty program to its customers for which points accumulate based on the purchase of merchandise. Over 90% of the Company’s customers participate in the loyalty program. Under ASC 606, Revenue from Contracts with Customers, these loyalty points provide the customer with a material right and a distinct performance obligation with revenue deferred and recognized when the points are expected to redeem or expire. The cycle of earning and redeeming loyalty points is generally under one year in duration. The loyalty accrual, net of breakage, was $1.0 million and $1.0 million at October 31, 2020 and February 1, 2020, respectively.

Shipping. Shipping and handling costs are accounted for as fulfillment costs and are included in cost of sales for all periods presented. Amounts related to shipping and handling that are billed to customers are recorded in sales, and the related costs are recorded in cost of goods sold, including occupancy costs, in the Consolidated Statements of Operations.

Disaggregation of Revenue

As noted above under Segment Information in Note 1, the Company’s business consists of one reportable segment, its retail segment. Substantially all of the Company’s revenue is generated from its stores and direct businesses. The operating results from the wholesale segment, which were immaterial, have been aggregated with this reportable segment, but the revenues are separately reported below. Accordingly, the Company has determined that the following sales channels depict the nature, amount, timing, and uncertainty of how revenue and cash flows are affected by economic factors:

	For the three months ended								For the nine months ended
(in thousands)	October 31, 2020				November 2, 2019				October 31, 2020				November 2, 2019
Store sales	$	53,363	66.6	%	$	81,054	78.1	%	$	124,155	60.0	%	$	262,888	78.5	%
Direct sales		26,764	33.4	%		22,676	21.9	%		82,605	40.0	%		71,915	21.5	%
Retail segment	$	80,127			$	103,730			$	206,760			$	334,803
Wholesale segment		5,044				2,851				12,080				7,996
Total Sales	$	85,171			$	106,581			$	218,840			$	342,799

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Debt

9 Months Ended

Oct. 31, 2020

Debt Disclosure [Abstract]

Debt

3. Debt

Credit Agreement with Bank of America, N.A.

On May 24, 2018, the Company entered into the Seventh Amended and Restated Credit Agreement, as amended, with Bank of America, N.A., as agent, providing for a secured $140.0 million credit facility. On April 15, 2020, the Company entered into a Third Amendment to the Seventh Amended and Restated Credit Facility, as amended (the “Third Amendment”). The Third Amendment,

among other things, (i) extended the current advance rate of 10%, under the “first-in, last out” (FILO) term facility (the “FILO loan”), from May 24, 2020 to December 31, 2020, at which time it will step-down to 7.5%; (ii) lowered the Loan Cap, as described below, and eliminated the springing financial covenant, (iii) increased the Applicable Margins under the FILO and Revolving Facility (defined below) by 150 basis points and (iv) permitted the Company to enter into promissory notes with vendors in satisfaction of outstanding payables for existing goods, in an aggregate amount not to exceed $15.0 million (as amended, the “Credit Facility”).

The Credit Facility provides maximum committed borrowings of $125.0 million in revolver loans, with the ability, pursuant to an accordion feature, to increase the Credit Facility by an additional $50.0 million upon the request of the Company and the agreement of the lender(s) participating in the increase (the “Revolving Facility”). The Revolving Facility provides for a sublimit of $20.0 million for commercial and standby letters of credit and up to $15.0 million for swingline loans. The Company’s ability to borrow under the Revolving Facility (the “Loan Cap”) is determined using an availability formula based on eligible assets. Pursuant to the Third Amendment, the excess availability under the Credit Facility cannot be less than the greater of (i) 10% of the Revolving Loan Cap (calculated without giving effect to the FILO (first-in, last-out) Push Down Reserve) or (ii) $10.0 million. The maturity date of the Credit Facility is May 24, 2023. The Company’s obligations under the Credit Facility are secured by a lien on substantially all of its assets.

To help manage its near-term liquidity in light of the uncertainty related to COVID-19 and provide financial flexibility, the Company drew $30.0 million under its secured revolving credit facility in March 2020. At October 31, 2020, the Company had outstanding borrowings under the Revolving Facility of $68.3 million, before unamortized debt issuance costs of $0.2 million. At October 31, 2020, outstanding standby letters of credit were $2.8 million and outstanding documentary letters of credit were $1.3 million. Unused excess availability was $13.5 million at October 31, 2020. Average monthly borrowings outstanding under the Revolving Facility during the first nine months of fiscal 2020 were $67.4 million, resulting in an average unused excess availability of approximately $19.5 million. The Company’s ability to borrow under the Revolving Facility was determined using an availability formula based on eligible assets, with increased advance rates based on seasonality.

Borrowings made pursuant to the Revolving Facility bear interest, calculated under either the Federal Funds rate or the LIBOR rate, at a rate equal to the following: (a) the Federal Funds rate plus a varying percentage based on the Company’s excess availability, of either 1.75% or 2.00%, or (b) the LIBOR rate (the Company being able to select interest periods of 1 week, 1 month, 2 months, 3 months or 6 months) plus a varying percentage based on the Company’s excess availability, of either 2.75% or 3.00%. The Company was also subject to an unused line fee of 0.25%. At October 31, 2020, the Company’s prime-based interest rate was 5.25%. At October 31, 2020, the Company had approximately $65.0 million of its outstanding borrowings in LIBOR-based contracts with an interest rate of 4.00%. The LIBOR-based contracts expired on November 2, 2020. When a LIBOR-based borrowing expires, the borrowings revert back to prime-based borrowings unless the Company enters into a new LIBOR-based borrowing arrangement.

Borrowings and repayments under the Revolving Facility for the nine months ended October 31, 2020 and November 2, 2019 were as follows:

	For the nine months ended
(in thousands)	October 31, 2020			November 2, 2019
Borrowings	$	60,748		$	117,910
Repayments		(32,071	)		(91,695	)
Net borrowings (repayments)	$	28,677		$	26,215

The fair value of the amount outstanding under the Revolving Facility at October 31, 2020 approximated the carrying value.

Long-Term Debt

Long-term debt at October 31, 2020 and February 1, 2020 is as follows:

(in thousands)	October 31, 2020			February 1, 2020
FILO Loan	$	15,000		$	15,000
Less: unamortized debt issuance costs		(145	)		(187	)
Total long-term debt		14,855			14,813
Less: current portion of long-term debt		—			—
Long-term debt, net of current portion	$	14,855		$	14,813

The total borrowing capacity under the FILO loan is based on a borrowing base, generally defined as a specified percentage of the value of eligible accounts (including certain trade names) that step down over time, plus a specified percentage of the value of eligible

inventory that steps down over time. The Third Amendment to the Credit Facility extended these advance rates by approximately seven months before they begin to step down. The FILO loan can be repaid, in whole or in part, subject to certain payment conditions. The term loan expires on May 24, 2023, if not repaid in full prior to that date.

As a result of extending the advance rates under the FILO loan, the applicable margin rates for borrowings were increased by approximately 150 basis points. Accordingly, borrowings made under the FILO loan will bear interest, calculated under either the Federal Funds rate or the LIBOR rate, at a rate equal to the following: (a) the Federal Funds rate plus a carrying percentage based on the Company’s excess availability, of either 3.75% or 4.00% until May 24, 2021 or 3.25% or 3.50% after May 24, 2021 or (b) the LIBOR rate (the Company being able to select interest periods of 1 week, 1 month, 2 months, 3 months or 6 months) plus a varying percentage based on the Company’s excess availability of either 4.75% or 5.00% until May 24, 2021, or 4.25% or 4.50% after May 24, 2021. At October 31, 2020, the outstanding balance of $15.0 million was in a 6-month LIBOR-based contract with an interest rate of 6.00%. The LIBOR-based contract expired on November 15, 2020. When a LIBOR-based contract expires, the borrowings revert back to prime-based borrowings unless the Company enters into a new LIBOR-based borrowing arrangement.

The Company paid interest and fees totaling $2.4 million and $2.7 million for the nine months ended October 31, 2020 and November 2, 2019, respectively.

Leases

9 Months Ended

Oct. 31, 2020

Leases [Abstract]

Leases

4. Leases

The Company leases all of its store locations and its corporate headquarters, which also includes its distribution center, under operating leases. The store leases typically have initial terms of 5 years to 10 years, with options that usually permit renewal for additional five-year periods. The initial term of the lease for the corporate headquarter was for 20 years, with the opportunity to extend for six additional successive periods of five years, beginning in fiscal 2026. The Company also leases certain equipment and other assets under operating leases, typically with initial terms of 3 to 5 years. The Company is generally obligated for the cost of property taxes, insurance and common area maintenance fees relating to its leases, which are considered variable lease costs and are expensed as incurred.

Due to the COVID-19 pandemic and all stores having to close temporarily, the Company held rent payments for the period of April through June 2020. During the second quarter of fiscal 2020, the Company received concessions with the majority of its landlords in the form of rent deferrals, abatements and, to a lesser extent, lease extensions. For the remainder of the leases, the outstanding lease payments were paid and the leases remain in good standing. ASC 842 requires the assessment of any lease modification to determine if the modification should be treated as a separate lease and if not, modification accounting would be applied. Lease modification accounting requires the recalculation of the ROU asset, lease liability and lease expense over the respective lease term. In April 2020, the FASB issued guidance allowing entities to make a policy election to account for lease concessions related to the COVID-19 pandemic as though enforceable rights and obligations for those concessions existed. The election applies to any lessor-provided lease concession related to the impact of the COVID-19 pandemic, provided the concession does not result in a substantial increase in the rights of the lessor or in the obligations of the lessee. The Company has opted not to elect this practical expedient and instead account for these rent concessions as lease modifications in accordance with ASC 842. As of October 31, 2020, the Company’s operating leases liabilities represent the present value of the remaining future minimum lease payments updated based on concessions and lease modifications, the majority of which were recorded in the second quarter of fiscal 2020.

The following table is a summary of the Company’s components of net lease cost for the third quarter and nine months ended October 31, 2020 and November 2, 2019:

	For the three months ended				For the nine months ended
	October 31, 2020		November 2, 2019		October 31, 2020		November 2, 2019
(in thousands)
Operating lease cost	$	11,824	$	13,500	$	35,756	$	39,968
Variable lease costs⁽¹⁾		3,690		4,201		10,759		12,200
Total lease costs	$	15,514	$	17,701	$	46,515	$	52,168

(1)

Variable lease costs include the cost of property taxes, insurance and common area maintenance fees related to its leases.

Supplemental cash flow and balance sheet information related to leases for the nine months ended October 31, 2020 and November 2, 2019 is as follows:


(dollars in thousands)	For the nine months ended
Cash paid for amounts included in the measurement of lease liabilities:	October 31, 2020			November 2, 2019
Operating cash flows for operating leases⁽¹⁾	$	33,233		$	43,633
Non-cash operating activities:
Right-of-use assets obtained in exchange for operating lease liabilities	$	645		$	3,245
Net decrease in right-of-use assets due to lease modifications associated with rent concessions and lease exits	$	(2,283	)	-

Weighted average remaining lease term	4.7 yrs.			5.5 yrs.
Weighted average discount rate	6.46%			7.12%

(1)

This decrease in cash payments for the first nine months of fiscal 2020 as compared to the prior year is primarily due to rent abatements and deferments negotiated primarily during the second quarter of fiscal 2020 for rent obligations due while stores were closed.

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the Consolidated Balance Sheet as of October 31, 2020:

(in thousands)
2020 (remaining)	$	13,026
2021		57,523
2022		49,322
2023		40,749
2024		30,517
Thereafter		37,403
Total minimum lease payments	$	228,540
Less: amount of lease payments representing interest		32,018
Present value of future minimum lease payments	$	196,522
Less: current obligations under leases		45,616
Long-term lease obligations	$	150,906

Stock-Based Compensation

9 Months Ended

Oct. 31, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

6. Stock-Based Compensation

The Company has one active stock-based compensation plan: the 2016 Incentive Compensation Plan (the “2016 Plan”). The initial share reserve under the 2016 Plan was 5,725,538 shares of common stock. A grant of a stock option award or stock appreciation right will reduce the outstanding reserve on a one-for-one basis, meaning one share for every share granted. A grant of a full-value award, including, but not limited to, restricted stock, restricted stock units and deferred stock, will reduce the outstanding reserve by a fixed ratio of 1.9 shares for every share granted. The Company’s shareholders approved amendments to increase the share reserve by 2,800,000 shares on August 8, 2019 and by an additional 1,740,000 shares on August 12, 2020. At October 31, 2020, the Company had 2,087,111 shares available under the 2016 Plan.

In accordance with the terms of the 2016 Plan, any shares outstanding under the previous 2006 Incentive Compensation Plan (the “2006 Plan”) at August 4, 2016 that subsequently terminate, expire or are cancelled for any reason without having been exercised or paid are added back and become available for issuance under the 2016 Plan, with stock options being added back on a one-for-one basis and full-value awards being added back on a 1 to 1.9 basis. At October 31, 2020, 464,016 stock options remained outstanding under the 2006 Plan.

The 2016 Plan is administered by the Compensation Committee. The Compensation Committee is authorized to make all determinations with respect to amounts and conditions covering awards. Options are not granted at a price less than fair value on the date of the grant. Except with respect to 5% of the shares available for awards under the 2016 Plan, no award will become exercisable unless such award has been outstanding for a minimum period of one year from its date of grant.

The following tables summarize the share activity and stock option activity for the Company’s 2006 Plan, 2016 Plan and inducement awards, on a combined basis, for the first nine months of fiscal 2020:

	RSUs ⁽¹⁾			Deferred shares ⁽²⁾			Fully-vested shares ⁽³⁾			Performance Share Units ⁽⁴⁾		Total number of shares			Weighted-average grant-date fair value
Shares
Outstanding non-vested shares at beginning of year		1,420,803			295,604			—			720,000		2,436,407		$	1.95
Shares granted		—			134,999			240,868			—		375,867		$	0.57
Shares vested/issued		(567,586	)		(113,900	)		(240,868	)		—		(922,354	)	$	1.75
Shares canceled		(17,443	)		—			—			—		(17,443	)	$	2.11
Outstanding non-vested shares at end of quarter		835,774			316,703			—			720,000		1,872,477		$	1.77

(1)

During the first nine months of fiscal 2020, the vesting of RSUs was primarily related to the time-based awards under the Company’s LTIP plans, see Note 5, Long-Term Incentive Plans.

(2)

The 134,999 shares of deferred stock, with a grant date fair value of $80,621, represent compensation to certain directors in lieu of cash, in accordance with their irrevocable elections. The shares of deferred stock will vest three years from the date of grant or at separation of service, based on the irrevocable election of each director pursuant to the Company’s Fourth Amended and Restated Non-Employee Director Compensation Plan (“Non-Employee Director Compensation Plan”).

(3)

During the first nine months of fiscal 2020, the Company granted 240,868 shares of stock, with a fair value of approximately $134,995, to certain directors as compensation in lieu of cash, in accordance with their irrevocable elections. Directors are required to elect 50% of their quarterly retainer in equity. Any shares in excess of the minimum required election are issued from the Non-Employee Director Compensation Plan.

(4)

The 720,000 shares of performance stock units (“PSUs”), with a fair value of $1.0 million, represent a sign-on grant to Mr. Kanter. The PSUs vest in installments when the following milestones are met: one-third of the PSUs vest when the trailing 90-day volume-weighted average closing stock price (“VWAP”) is $4.00, one-third of the PSUs vest when the VWAP is $6.00 and one-third when the VWAP is $8.00. All PSUs will expire on April 1, 2023 if no performance metric is achieved. The $1.0 million is being expensed over the respective derived service periods of each tranche of 16 months, 25 months and 30 months, respectively. The respective fair value and derived service periods assigned to the PSUs were determined using a

Monte Carlo model based on: the Company’s historical volatility of 55.9%, a term of 4.1 years, stock price on the date of grant of $2.50 per share, a risk-free rate of 2.5% and a cost of equity of 9.5%.

	Number of shares			Weighted-average exercise price per option		Weighted-average remaining contractual term		Aggregate intrinsic value (in 000's)
Stock Options
Outstanding options at beginning of year		754,833		$	4.84	2.3 years		$	—
Options granted ⁽¹⁾		3,185,542		$	0.55		—		—
Options expired and canceled		(264,146	)	$	4.85		—		—
Options exercised		—			—		—		—
Outstanding options at end of quarter		3,676,229		$	1.12	8.7 years		$	—
Options exercisable at end of quarter		490,687		$	4.83	2.8 years		$	—

(1)

In the second quarter of fiscal 2020, the Company granted to Mr. Kanter a stock option to purchase 450,000 shares of the Company’s common stock, at an exercise price of $0.64 per share, which will vest over 34 months. The Company also granted stock options to purchase an aggregate of 2,735,542 shares of the Company’s common stock, at an exercise price of $0.53 per share, in connection with the time-based grant of awards under its 2020-2022 LTIP, see Note 5, Long-Term Incentive Plans.

For the first nine months of fiscal 2020, the Company granted stock options to purchase an aggregate of 3,185,542 shares of common stock and 134,999 shares of deferred stock. For the first nine months of fiscal 2019, the Company granted 720,000 PSUs, 1,234,439 RSUs and 72,668 shares of deferred stock. The Company’s non-employee directors voted to suspend their compensation for the second quarter of fiscal 2020. Subsequently, such compensation resumed in the third quarter of fiscal 2020.

Non-Employee Director Compensation Plan

The Company granted 103,669 shares of common stock, with a fair value of approximately $52,921, to certain of its non-employee directors as compensation in lieu of cash in the first nine months of fiscal 2020. As mentioned above, the non-employee directors voted to suspend their second quarter compensation.

Stock Compensation Expense

The Company recognized total stock-based compensation expense of $1.1 million and $1.4 million for the first nine months of fiscal 2020 and fiscal 2019, respectively. The total compensation cost related to time-vested stock options, RSU and PSU awards not yet recognized as of October 31, 2020 was approximately $2.4 million, net of estimated forfeitures, which will be expensed over a weighted average remaining life of 30 months.

Earnings per Share

9 Months Ended

Oct. 31, 2020

Earnings Per Share [Abstract]

Earnings per Share

7. Earnings per Share

The following table provides a reconciliation of the number of shares outstanding for basic and diluted earnings per share:

	For the three months ended				For the nine months ended
	October 31, 2020		November 2, 2019		October 31, 2020		November 2, 2019
(in thousands)
Common stock outstanding:
Basic weighted average common shares outstanding		51,545		50,089		51,127		49,853
Common stock equivalents – stock options and restricted stock ⁽¹⁾		—		—		—		—
Diluted weighted average common shares outstanding		51,545		50,089		51,127		49,853

(1)

Common stock equivalents of 134 shares and 172 shares for the three and nine months ended October 31, 2020, respectively, and 324 shares and 404 shares for the three and nine months ended November 2, 2019, respectively, were excluded due to the net loss in each period.

The following potential common stock equivalents were excluded from the computation of diluted earnings per share in each period, because the exercise price of such options was greater than the average market price per share of common stock for the respective periods or because of the unearned compensation associated with either stock options, restricted stock units, restricted or deferred stock had an anti-dilutive effect.

	For the three months ended				For the nine months ended
	October 31, 2020		November 2, 2019		October 31, 2020		November 2, 2019
(in thousands, except exercise prices)
Stock options		3,676		819		3,676		804
Restricted stock units		833		1,242		833		679
Restricted and deferred stock		191		114		191		114
Range of exercise prices of such options	$0.53 - $7.02		$1.85 - $7.02		$0.53 - $7.02		$2.25 - $7.02

The above options, which were outstanding at October 31, 2020, expire from January 31, 2021 to June 11, 2030.

Excluded from the computation of basic and diluted earnings per share for both periods were 720,000 shares of unvested performance stock units. These performance-based awards will be included in the computation of basic and diluted earnings per share if, and when, the respective performance targets are achieved. In addition, 316,703 shares and 267,851 shares of deferred stock at October 31, 2020 and November 2, 2019, respectively, were excluded from basic earnings per share. Outstanding shares of deferred stock are not considered issued and outstanding until the vesting date of the deferral period.

Basis of Presentation (Policies)

9 Months Ended

Oct. 31, 2020

Accounting Policies [Abstract]

Impact of COVID-19 Pandemic on Business

million for employee severance and one-time termination benefits. The Company intends to proceed cautiously and continue to take proactive steps to manage its liquidity.

Segment Information

Intangibles

Accounts Payable

Fair Value of Financial Instruments

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities.

The Company utilizes observable market inputs (quoted market prices) when measuring fair value whenever possible.

Accumulated Other Comprehensive Income (Loss) - ("AOCI")

Accumulated Other Comprehensive Income (Loss) - (“AOCI”)

	October 31, 2020								November 2, 2019
For the three months ended:	(in thousands)
	Pension Plans			Foreign Currency		Total			Pension Plans			Foreign Currency			Total
Balance at beginning of the quarter	$	(5,983	)	$	8	$	(5,975	)	$	(5,229	)	$	(726	)	$	(5,955	)

Other comprehensive income (loss) before reclassifications, net of taxes		77			—		77			27			(17	)		10

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

Amounts reclassified from accumulated other comprehensive income, net of taxes ⁽²⁾		170			—		170			118			—			118

Other comprehensive income (loss) for the period		247			—		247			145			775			920

Balance at end of quarter	$	(5,736	)	$	8	$	(5,728	)	$	(5,084	)	$	49		$	(5,035	)

	October 31, 2020									November 2, 2019
For the nine months ended:	(in thousands)
	Pension Plans			Foreign Currency			Total			Pension Plans			Foreign Currency			Total
Balance at beginning of fiscal year	$	(6,478	)	$	47		$	(6,431	)	$	(5,521	)	$	(662	)	$	(6,183	)

Other comprehensive income (loss) before reclassifications, net of taxes		231			(39	)		192			82			(81	)		1

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

Amounts reclassified from accumulated other comprehensive income, net of taxes ⁽²⁾		511			—			511			355			—			355

Other comprehensive income (loss) for the period		742			(39	)		703			437			711			1,148

Balance at end of quarter	$	(5,736	)	$	8		$	(5,728	)	$	(5,084	)	$	49		$	(5,035	)

(1)

(2)

Stock-based Compensation

For the nine months ended:	October 31, 2020
Expected volatility	82.3% - 87.8%
Risk-free interest rate	0.22% - 0.27%
Expected life	3.0 - 4.0 yrs.
Dividend rate		—
Weighted average fair value of options granted	$0.32

Impairment of Long-Lived Assets

There was no material impairment of long-lived assets in the first nine months of fiscal 2019.

Leases

See Note 4 ‘‘Leases’’ for additional information.

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

Basis of Presentation (Tables)

9 Months Ended

Oct. 31, 2020

Accounting Policies [Abstract]

Other Comprehensive Income and Reclassifications from AOCI

	October 31, 2020								November 2, 2019
For the three months ended:	(in thousands)
	Pension Plans			Foreign Currency		Total			Pension Plans			Foreign Currency			Total
Balance at beginning of the quarter	$	(5,983	)	$	8	$	(5,975	)	$	(5,229	)	$	(726	)	$	(5,955	)

Other comprehensive income (loss) before reclassifications, net of taxes		77			—		77			27			(17	)		10

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

Amounts reclassified from accumulated other comprehensive income, net of taxes ⁽²⁾		170			—		170			118			—			118

Other comprehensive income (loss) for the period		247			—		247			145			775			920

Balance at end of quarter	$	(5,736	)	$	8	$	(5,728	)	$	(5,084	)	$	49		$	(5,035	)

	October 31, 2020									November 2, 2019
For the nine months ended:	(in thousands)
	Pension Plans			Foreign Currency			Total			Pension Plans			Foreign Currency			Total
Balance at beginning of fiscal year	$	(6,478	)	$	47		$	(6,431	)	$	(5,521	)	$	(662	)	$	(6,183	)

Other comprehensive income (loss) before reclassifications, net of taxes		231			(39	)		192			82			(81	)		1

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

Amounts reclassified from accumulated other comprehensive income, net of taxes ⁽²⁾		511			—			511			355			—			355

Other comprehensive income (loss) for the period		742			(39	)		703			437			711			1,148

Balance at end of quarter	$	(5,736	)	$	8		$	(5,728	)	$	(5,084	)	$	49		$	(5,035	)

(1)

(2)

Valuation Assumptions for Stock Options

For the nine months ended:	October 31, 2020
Expected volatility	82.3% - 87.8%
Risk-free interest rate	0.22% - 0.27%
Expected life	3.0 - 4.0 yrs.
Dividend rate		—
Weighted average fair value of options granted	$0.32

Leases (Tables)

9 Months Ended

Oct. 31, 2020

Leases [Abstract]

Summary of Components of Net Lease Cost

The following table is a summary of the Company’s components of net lease cost for the third quarter and nine months ended October 31, 2020 and November 2, 2019:

	For the three months ended				For the nine months ended
	October 31, 2020		November 2, 2019		October 31, 2020		November 2, 2019
(in thousands)
Operating lease cost	$	11,824	$	13,500	$	35,756	$	39,968
Variable lease costs⁽¹⁾		3,690		4,201		10,759		12,200
Total lease costs	$	15,514	$	17,701	$	46,515	$	52,168

(1)

Variable lease costs include the cost of property taxes, insurance and common area maintenance fees related to its leases.

Schedule of Cash Flow and Balance Sheet Information Related to Leases

Supplemental cash flow and balance sheet information related to leases for the nine months ended October 31, 2020 and November 2, 2019 is as follows:


(dollars in thousands)	For the nine months ended
Cash paid for amounts included in the measurement of lease liabilities:	October 31, 2020			November 2, 2019
Operating cash flows for operating leases⁽¹⁾	$	33,233		$	43,633
Non-cash operating activities:
Right-of-use assets obtained in exchange for operating lease liabilities	$	645		$	3,245
Net decrease in right-of-use assets due to lease modifications associated with rent concessions and lease exits	$	(2,283	)	-

Weighted average remaining lease term	4.7 yrs.			5.5 yrs.
Weighted average discount rate	6.46%			7.12%

(1)

Schedule of Reconciliation of Undiscounted Cash Flows Related to Operating Lease Liabilities

(in thousands)
2020 (remaining)	$	13,026
2021		57,523
2022		49,322
2023		40,749
2024		30,517
Thereafter		37,403
Total minimum lease payments	$	228,540
Less: amount of lease payments representing interest		32,018
Present value of future minimum lease payments	$	196,522
Less: current obligations under leases		45,616
Long-term lease obligations	$	150,906

Stock-Based Compensation (Tables)

9 Months Ended

Oct. 31, 2020

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Stock Option Activity

	Number of shares			Weighted-average exercise price per option		Weighted-average remaining contractual term		Aggregate intrinsic value (in 000's)
Stock Options
Outstanding options at beginning of year		754,833		$	4.84	2.3 years		$	—
Options granted ⁽¹⁾		3,185,542		$	0.55		—		—
Options expired and canceled		(264,146	)	$	4.85		—		—
Options exercised		—			—		—		—
Outstanding options at end of quarter		3,676,229		$	1.12	8.7 years		$	—
Options exercisable at end of quarter		490,687		$	4.83	2.8 years		$	—

(1)

Employee Stock Plan, 2006 Plan, 2016 Plan and Inducement Awards

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Restricted Stock Activity

	RSUs ⁽¹⁾			Deferred shares ⁽²⁾			Fully-vested shares ⁽³⁾			Performance Share Units ⁽⁴⁾		Total number of shares			Weighted-average grant-date fair value
Shares
Outstanding non-vested shares at beginning of year		1,420,803			295,604			—			720,000		2,436,407		$	1.95
Shares granted		—			134,999			240,868			—		375,867		$	0.57
Shares vested/issued		(567,586	)		(113,900	)		(240,868	)		—		(922,354	)	$	1.75
Shares canceled		(17,443	)		—			—			—		(17,443	)	$	2.11
Outstanding non-vested shares at end of quarter		835,774			316,703			—			720,000		1,872,477		$	1.77

(1)

During the first nine months of fiscal 2020, the vesting of RSUs was primarily related to the time-based awards under the Company’s LTIP plans, see Note 5, Long-Term Incentive Plans.

(2)

(3)

(4)

Earnings per Share (Tables)

9 Months Ended

Oct. 31, 2020

Earnings Per Share [Abstract]

Reconciliation of Number of Shares Outstanding for Basic and Diluted Earnings Per Share

The following table provides a reconciliation of the number of shares outstanding for basic and diluted earnings per share:

	For the three months ended				For the nine months ended
	October 31, 2020		November 2, 2019		October 31, 2020		November 2, 2019
(in thousands)
Common stock outstanding:
Basic weighted average common shares outstanding		51,545		50,089		51,127		49,853
Common stock equivalents – stock options and restricted stock ⁽¹⁾		—		—		—		—
Diluted weighted average common shares outstanding		51,545		50,089		51,127		49,853

(1)

Potential Common Stock Equivalents Excluded from Computation of Diluted Earnings Per Share

	For the three months ended				For the nine months ended
	October 31, 2020		November 2, 2019		October 31, 2020		November 2, 2019
(in thousands, except exercise prices)
Stock options		3,676		819		3,676		804
Restricted stock units		833		1,242		833		679
Restricted and deferred stock		191		114		191		114
Range of exercise prices of such options	$0.53 - $7.02		$1.85 - $7.02		$0.53 - $7.02		$2.25 - $7.02

Basis of Presentation - Additional Information (Details)		1 Months Ended	3 Months Ended		4 Months Ended	8 Months Ended	9 Months Ended
	Nov. 02, 2020 USD ($) Employee	Mar. 31, 2020 USD ($)	Oct. 31, 2020 USD ($) Store Lease RenewalOption	May 02, 2020 USD ($)	Aug. 01, 2020	Oct. 31, 2020 USD ($) Employee Store Lease RenewalOption	Oct. 31, 2020 USD ($) Segment Store Lease RenewalOption	Nov. 02, 2019 USD ($)	Jan. 30, 2021 USD ($)	Feb. 02, 2019 USD ($)
Accounting Policies [Line Items]
Number of reportable segments \| Segment							1
Number of operating segments \| Segment							3
Short-term notes			$ 3,500,000			$ 3,500,000	$ 3,500,000
Accrue interest rate, percentage			4.00%			4.00%	4.00%
Impairment of long-lived assets				$ 16,300,000				$ 0
Impairment of right-of-use asset				12,500,000
Non-cash gain on reduction of operating lease liability			$ 1,200,000
Number of retail stores closed \| Store			3			3	3
Reduction in asset impairment charge			$ 1,100,000				$ 1,100,000
Number of operating leases \| Lease			2			2	2
Store occupancy cost offset amount			$ 100,000
Short term leases							$ 0
Operating lease, option to extend							Renewal options are not included in the lease term for automobile and equipment leases because they are not considered reasonably certain of being exercised at lease commencement. Renewal options were not considered for the Company’s corporate headquarters and distribution center lease, which was entered into in 2006 and was for an initial 20-year term
ASU No. 2016-13
Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adopted			true			true	true
Change in accounting principle, accounting standards update, adoption date			May 02, 2020			May 02, 2020	May 02, 2020
Change in accounting principle, accounting standards update, immaterial effect			false			false	false
ASU No. 2018-13
Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adopted			true			true	true
Change in accounting principle, accounting standards update, adoption date			May 02, 2020			May 02, 2020	May 02, 2020
Change in accounting principle, accounting standards update, immaterial effect			false			false	false
ASU No. 2019-12
Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adoption date			May 02, 2020			May 02, 2020	May 02, 2020
Change in accounting principle, accounting standards update, immaterial effect			false			false	false
Change in accounting principle, Accounting standards update, early adoption			true			true	true
Store
Accounting Policies [Line Items]
Operating lease, option to extend							The Company’s store leases typically contain options that permit renewals for additional periods of up to five years each. In general, for store leases with an initial term of 10 years or more, the options to extend are not considered reasonably certain at lease commencement. For stores leases with an initial term of 5 years, the Company evaluates each lease independently and, only when the Company considers it reasonably certain that it will exercise an option to extend, will the associated payment of that option be included in the measurement of the right-of-use asset and lease liability.
Operating lease renewal term			5 years			5 years	5 years
Corporate Headquarter
Accounting Policies [Line Items]
Operating lease renewal term			5 years			5 years	5 years
Operating lease initial term			20 years			20 years	20 years
Number of renewal options \| RenewalOption			6			6	6
Property and Equipment
Accounting Policies [Line Items]
Impairment of long-lived assets				$ 3,800,000
Accounts Payable
Accounting Policies [Line Items]
Short-term notes			$ 1,300,000			$ 1,300,000	$ 1,300,000
Domain Name (dxl.com)
Accounting Policies [Line Items]
Indefinite-lived intangible assets, carrying value										$ 1,200,000
Subsequent Event
Accounting Policies [Line Items]
Number of corporate positions eliminated \| Employee	45
Aggregate number of corporate workforce positions reduced \| Employee	101
Percentage of corporate workforce reduction	29.00%
Corporate restructuring expected annual savings	$ 9,700,000
Reduction in Corporate Payroll \| Subsequent Event
Accounting Policies [Line Items]
Corporate restructuring expected annual savings	$ 3,800,000
Employee Severance and One-time Termination Benefits \| Scenario Forecast
Accounting Policies [Line Items]
Expected cash charge									$ 500,000
Revolving Credit Facility
Accounting Policies [Line Items]
Proceeds from credit facility							$ 60,748,000	$ 117,910,000
Minimum \| Store
Accounting Policies [Line Items]
Operating lease initial term			5 years			5 years	5 years
Maximum
Accounting Policies [Line Items]
Short-term debt, terms							one-year
Maximum \| Store
Accounting Policies [Line Items]
Operating lease renewal term			5 years			5 years	5 years
Operating lease initial term			10 years			10 years	10 years
Natural Disasters and Other Casualty Events
Accounting Policies [Line Items]
Number of employees laid-off \| Employee						1,078
Percentage of employees laid-off						54.00%
Natural Disasters and Other Casualty Events \| Revolving Credit Facility
Accounting Policies [Line Items]
Proceeds from credit facility		$ 30,000,000.0
Natural Disasters and Other Casualty Events \| Minimum
Accounting Policies [Line Items]
Percentage of temporary salary reduction					10.00%
Natural Disasters and Other Casualty Events \| Maximum
Accounting Policies [Line Items]
Percentage of temporary salary reduction					20.00%

Basis of Presentation - Other Comprehensive Income and Reclassifications from AOCI (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Oct. 31, 2020

Nov. 02, 2019

Oct. 31, 2020

Nov. 02, 2019

Accumulated Other Comprehensive Income (Loss) [Line Items]

Recognition of accumulated foreign currency translation adjustment

$ 7,385

$ 62,419

$ 58,423

$ 58,640

792

247

920

703

1,148

Accumulated Other Comprehensive Income (Loss) [Line Items]

1,057

56,739

1,057

56,739

Pension Plans

Other comprehensive income (loss) before reclassifications, net of taxes

(5,983)

(5,229)

(6,478)

(5,521)

231

Amounts reclassified from accumulated other comprehensive income, net of taxes

^[1]

170

118

511

355

247

145

742

437

Accumulated Other Comprehensive Income (Loss) [Line Items]

(5,736)

(5,084)

(5,736)

(5,084)

Foreign Currency

Other comprehensive income (loss) before reclassifications, net of taxes

(726)

(662)

(17)

(39)

(81)

Recognition of accumulated foreign currency translation adjustment

^[2]

792

775

(39)

711

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss) before reclassifications, net of taxes

(5,975)

(5,955)

(6,431)

(6,183)

192

Recognition of accumulated foreign currency translation adjustment

^[2]

792

Amounts reclassified from accumulated other comprehensive income, net of taxes

^[1]

170

118

511

355

247

920

703

1,148

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

$ (5,728)

$ (5,035)

$ (5,728)

$ (5,035)

[1]

[2]

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669619-108580

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21463-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=118261656&loc=d3e32136-110900

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 55
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121640130&loc=d3e1436-108581

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=118261656&loc=d3e32211-110900

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6450520&loc=d3e32583-110901

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669625-108580

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

Debt - Additional Information (Details) - USD ($)			1 Months Ended	7 Months Ended	9 Months Ended		24 Months Ended	36 Months Ended
Debt - Additional Information (Details) - USD ($)	Apr. 15, 2020	May 24, 2018	Mar. 31, 2020	Dec. 31, 2020	Oct. 31, 2020	Nov. 02, 2019	May 24, 2023	May 24, 2021	Feb. 01, 2020
Debt Instrument [Line Items]
Unamortized debt issuance costs					$ 145,000				$ 187,000
Interest and fees paid					$ 2,400,000	$ 2,700,000
FILO Loan
Debt Instrument [Line Items]
Line of credit facility, advance rate	10.00%
Line of credit facility, basis points					1.50%
Line of credit facility, maturity date					May 24, 2023
FILO Loan \| 1-Month LIBOR-based Borrowings
Debt Instrument [Line Items]
Line of credit facility, amount outstanding					$ 15,000,000.0
Line of credit facility interest rate					6.00%
LIBOR contract, expiration date					Nov. 15, 2020
FILO Loan \| Scenario Forecast
Debt Instrument [Line Items]
Line of credit facility, advance rate				7.50%
FILO Loan \| Scenario Forecast \| Minimum \| Federal Funds Rate
Debt Instrument [Line Items]
Line of credit facility, basis spread on variable rate							3.25%	3.75%
FILO Loan \| Scenario Forecast \| Minimum \| LIBOR-based Borrowings
Debt Instrument [Line Items]
Line of credit facility, basis spread on variable rate							4.25%	4.75%
FILO Loan \| Scenario Forecast \| Maximum \| Federal Funds Rate
Debt Instrument [Line Items]
Line of credit facility, basis spread on variable rate							3.50%	4.00%
FILO Loan \| Scenario Forecast \| Maximum \| LIBOR-based Borrowings
Debt Instrument [Line Items]
Line of credit facility, basis spread on variable rate							4.50%	5.00%
Credit Facility
Debt Instrument [Line Items]
Line of credit facility, amount outstanding		$ 140,000,000.0			$ 68,300,000
Line of credit facility, maximum borrowing capacity	$ 15,000,000.0	125,000,000.0
Line of credit facility, potential maximum borrowing capacity		$ 50,000,000.0
Minimum loan cap percentage		10.00%
Line of credit facility		$ 10,000,000.0
Line of credit facility, maturity date					May 24, 2023
Unamortized debt issuance costs					$ 200,000
Line of credit facility, remaining borrowing capacity					13,500,000
Line of credit facility, average monthly outstanding amount					67,400,000
Line of credit facility, average unused excess availability					$ 19,500,000
Unused line fee					0.25%
Credit Facility \| LIBOR-based Borrowings
Debt Instrument [Line Items]
Line of credit facility, amount outstanding					$ 65,000,000.0
Line of credit facility interest rate					4.00%
LIBOR contract, expiration date					Nov. 02, 2020
Credit Facility \| Prime-based Borrowings
Debt Instrument [Line Items]
Line of credit facility interest rate					5.25%
Credit Facility \| Minimum \| Federal Funds Rate
Debt Instrument [Line Items]
Line of credit facility, basis spread on variable rate					1.75%
Credit Facility \| Minimum \| LIBOR-based Borrowings
Debt Instrument [Line Items]
Line of credit facility, basis spread on variable rate					2.75%
Credit Facility \| Maximum \| Federal Funds Rate
Debt Instrument [Line Items]
Line of credit facility, basis spread on variable rate					2.00%
Credit Facility \| Maximum \| LIBOR-based Borrowings
Debt Instrument [Line Items]
Line of credit facility, basis spread on variable rate					3.00%
Credit Facility \| Commercial And Standby Letter Of Credits
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		20,000,000.0
Credit Facility \| Swingline Loans
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		$ 15,000,000.0
Credit Facility \| Standby Letters of Credit
Debt Instrument [Line Items]
Letters of credit outstanding, amount					$ 2,800,000
Credit Facility \| Documentary Letters of Credit
Debt Instrument [Line Items]
Letters of credit outstanding, amount					$ 1,300,000
FILO and Revolving Facility
Debt Instrument [Line Items]
Line of credit facility, basis points	1.50%
Secured Revolving Credit Facility
Debt Instrument [Line Items]
Proceeds from credit facility			$ 30,000,000.0

Stock-Based Compensation - Additional Information (Details) - USD ($)				9 Months Ended
	Aug. 12, 2020	Aug. 08, 2019	Aug. 04, 2016	Oct. 31, 2020	Nov. 02, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options granted				3,185,542
Stock compensation expense				$ 1,123,000	$ 1,422,000
Non Employee Directors
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares of common stock issued				103,669
Fair value of common stock issued				$ 52,921
Performance stock units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares granted					720,000
RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares granted					1,234,439
Deferred stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares granted				134,999	72,668
Time Vested Stock Options, RSU and PSU Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock compensation cost				$ 2,400,000
Unrecognized stock compensation cost weighted average recognition period				30 months
2016 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserve, shares			5,725,538
Reduction in outstanding reserve for share granted			1.00%
Reduction in outstanding reserve for share granted, full-value award			1.90%
Shares available for grant				2,087,111
Number of additional shares authorized to increase share reserve	1,740,000	2,800,000
Share-based compensation arrangement by share-based payment award, description				In accordance with the terms of the 2016 Plan, any shares outstanding under the previous 2006 Incentive Compensation Plan (the “2006 Plan”) at August 4, 2016 that subsequently terminate, expire or are cancelled for any reason without having been exercised or paid are added back and become available for issuance under the 2016 Plan, with stock options being added back on a one-for-one basis and full-value awards being added back on a 1 to 1.9 basis.
Percent of shares available for awards			5.00%
Share-based compensation description				Except with respect to 5% of the shares available for awards under the 2016 Plan, no award will become exercisable unless such award has been outstanding for a minimum period of one year from its date of grant.
2006 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock option outstanding				464,016

Stock-Based Compensation - Summary of Activity for Non-Vested Shares under Two Thousand Six, Two Thousand Sixteen Plan And Inducement Awards (Parenthetical) (Details) - USD ($)

3 Months Ended

9 Months Ended

Aug. 01, 2020

Oct. 31, 2020

Nov. 02, 2019

Feb. 01, 2020

Shares granted, vesting terms

The performance period for each LTIP is three years. Awards for any achievement of performance targets will not be granted until the performance targets are achieved and then will be subject to additional vesting through August 31, 2021, August 31, 2022 and August, 31, 2023, respectively. The time-based awards under the 2018-2020 LTIP, 2019-2021 LTIP and 2020-2022 LTIP vest in four equal installments through April 1, 2022, April 1, 2023 and April 1, 2024, respectively.

Chief Executive Officer

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Share-based compensation arrangement by share-based payment award, vesting period

34 months

Deferred stock

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

134,999

72,668

Performance stock units

720,000

Shares granted, vesting terms

720,000

The PSUs vest in installments when the following milestones are met: one-third of the PSUs vest when the trailing 90-day volume-weighted average closing stock price (“VWAP”) is $4.00, one-third of the PSUs vest when the VWAP is $6.00 and one-third when the VWAP is $8.00. All PSUs will expire on April 1, 2023 if no performance metric is achieved.

Share based expensed over the respective derived service periods

$ 1,000,000.0

Expiration date

Apr. 01, 2023

Share based compensation fair value assumptions historical volatility

55.90%

Share based compensation fair value assumptions, term

4 years 1 month 6 days

Share based compensation fair value assumptions, share price

$ 2.50

Share based compensation fair value assumptions risk free rate

2.50%

Share based compensation fair value assumptions cost of equity

9.50%

Performance stock units | When VWAP is $4.00

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Volume-weighted average closing stock price

$ 4.00

Service period

16 months

Performance stock units | When VWAP is $6.00

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Volume-weighted average closing stock price

$ 6.00

Service period

25 months

Performance stock units | When VWAP is $8.00

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Volume-weighted average closing stock price

$ 8.00

Service period

30 months

Performance stock units | Chief Executive Officer

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Shares granted during the period, fair value

$ 1,000,000.0

Employee Stock Plan, 2006 Plan, 2016 Plan and Inducement Awards

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Shares granted during the period, fair value

375,867

$ 80,621

Share-based compensation arrangement by share-based payment award, vesting period

3 years

Percentage of quarterly retainer

50.00%

Employee Stock Plan, 2006 Plan, 2016 Plan and Inducement Awards | Certain Directors

1,872,477

2,436,407

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Shares granted during the period, fair value

240,868

$ 134,995

Employee Stock Plan, 2006 Plan, 2016 Plan and Inducement Awards | Deferred stock

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

134,999

Employee Stock Plan, 2006 Plan, 2016 Plan and Inducement Awards | Deferred stock | Certain Directors

^[1]

316,703

295,604

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Employee Stock Plan, 2006 Plan, 2016 Plan and Inducement Awards | Performance stock units

^[1]

134,999

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]