J.JILL, INC., 10-K filed on 4/1/2025
Annual Report
v3.25.1
Document and Entity Information - USD ($)
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Mar. 28, 2025
Aug. 02, 2024
Cover [Abstract]        
Document Type 10-K      
Amendment Flag false      
Document Period End Date Feb. 01, 2025      
Document Fiscal Year Focus 2024      
Document Fiscal Period Focus FY      
Trading Symbol JILL      
Entity Registrant Name J.Jill, Inc.      
Entity Central Index Key 0001687932      
Current Fiscal Year End Date --02-01      
Entity Well Known Seasoned Issuer No      
Entity Current Reporting Status Yes      
Entity Voluntary Filers No      
Entity Filer Category Accelerated Filer      
Entity Small Business true      
Entity Shell Company false      
Entity Emerging Growth Company false      
ICFR Auditor Attestation Flag true      
Entity Public Float       $ 256,167,545
Entity Common Stock, Shares Outstanding     15,248,406  
Document Financial Statement Error Correction [Flag] false      
Entity Interactive Data Current Yes      
Title of 12(b) Security Common Stock, $0.01 par value      
Security Exchange Name NYSE      
Entity File Number 001-38026      
Entity Incorporation, State or Country Code DE      
Entity Tax Identification Number 45-1459825      
Entity Address, Address Line One 4 Batterymarch Park      
Entity Address, City or Town Quincy      
Entity Address, State or Province MA      
Entity Address, Postal Zip Code 02169      
City Area Code 617      
Local Phone Number 376-4300      
Document Annual Report true      
Document Transition Report false      
Auditor Name Grant Thornton LLP Grant Thornton LLP    
Auditor Location Southfield, Michigan Southfield, Michigan    
Auditor Firm ID 248 248    
Documents Incorporated by Reference

Portions of Part II and Part III of this Form 10-K are incorporated by reference from the Registrant’s definitive proxy statement for its 2024 annual meeting of shareholders to be filed with the Securities and Exchange Commission no later than 120 days after the end of the Registrant’s fiscal year.

      
Auditor Opinion [Text Block]

Opinion on the financial statements

We have audited the accompanying consolidated balance sheets of J.Jill, Inc. (a Delaware corporation) and subsidiaries (the “Company”) as of February 1, 2025 and February 3, 2024, the related consolidated statements of operations and comprehensive income, shareholders’ equity (deficit) and cash flows for each of the three years in the period ended February 1, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of February 1, 2025 and February 3, 2024, and the results of its operations and its cash flows for each of the three years in the period ended February 1, 2025 in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of February 1, 2025, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated April 1, 2025 expressed an unqualified opinion.

      
v3.25.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Current assets:    
Cash and cash equivalents $ 35,427 $ 62,172
Accounts receivable 5,017 5,042
Inventories, net 61,295 53,259
Prepaid expenses and other current assets 20,291 17,656
Total current assets 122,030 138,129
Property and equipment, net 55,325 54,118
Intangible assets, net 61,015 66,246
Goodwill 59,697 59,697
Operating lease assets, net 112,303 108,203
Other assets 7,329 1,787
Total assets 417,699 428,180
Current liabilities:    
Accounts payable 51,980 41,112
Accrued expenses and other current liabilities 40,479 42,283
Current portion of long-term debt   35,353
Current portion of operating lease liabilities 34,649 36,204
Total current liabilities 127,108 154,952
Long-term debt, net of discount and current portion 69,419 120,595
Deferred income taxes 9,389 10,967
Operating lease liabilities, net of current portion 104,751 103,070
Other liabilities 1,263 1,378
Total liabilities 311,930 390,962
Commitments and contingencies (see Note 11)
Shareholders' Equity    
Common stock, par value $0.01 per share; 50,000,000 shares authorized; 15,344,053 issued and 15,324,222 outstanding at February 1, 2025 and 10,614,454 issued and outstanding at February 3, 2024 153 107
Additional paid-in capital 242,781 213,236
Treasury stock, at cost, 19,831 shares at February 1, 2025 and none at February 3, 2024 (523)  
Accumulated deficit (136,642) (176,125)
Total shareholders' equity 105,769 37,218
Total liabilities and shareholders' equity $ 417,699 $ 428,180
v3.25.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Feb. 01, 2025
Feb. 03, 2024
Statement of Financial Position [Abstract]    
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 50,000,000 50,000,000
Common stock, shares issued 15,344,053 10,614,454
Common stock, shares outstanding 15,324,222 10,614,454
Treasury stock, shares 19,831 0
v3.25.1
Consolidated Statements of Operations and Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Net sales $ 610,857 $ 608,043 $ 618,528
Costs of goods sold (exclusive of depreciation and amortization) 181,001 177,261 193,218
Gross profit 429,856 430,782 425,310
Selling, general and administrative expenses 353,382 344,543 345,163
Impairment of long-lived assets 772 189 1,413
Operating income 75,702 86,050 78,734
Loss on extinguishment of debt 8,570    
Loss on debt refinancing   12,702  
Interest expense 15,701 25,699 17,174
Interest income (2,550) (2,790) (1,228)
Income before provision for income taxes 53,981 49,365 58,674
Income tax provision 14,498 13,164 16,499
Net income and total comprehensive income $ 39,483 $ 36,201 $ 42,175
Net income per common share:      
Basic $ 2.64 $ 2.56 $ 3.03
Diluted $ 2.61 $ 2.51 $ 2.95
Weighted average common shares:      
Basic 14,956,165 14,143,127 13,935,403
Diluted 15,136,833 14,404,470 14,285,035
Cash dividends declared per common share $ 0.21    
Related Party [Member]      
Interest expense   $ 1,074 $ 4,114
v3.25.1
Consolidated Statements of Shareholder's Equity (Deficit) - USD ($)
$ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Treasury Stock [Member]
Accumulated Deficit [Member]
Beginning balance at Jan. 29, 2022 $ (44,654) $ 100 $ 209,747   $ (254,501)
Beginning balance, shares at Jan. 29, 2022   10,001,422      
Vesting of restricted stock units   $ 2 (2)    
Vesting of restricted stock units, shares   232,805      
Surrender of shares to pay withholding taxes (1,245)   (1,245)    
Surrender of shares to pay withholding taxes, shares   (68,866)      
Equity-based compensation 3,505   3,505    
Net Income (Loss) 42,175       42,175
Ending balance at Jan. 28, 2023 (219) $ 102 212,005   (212,326)
Ending balance, shares at Jan. 28, 2023   10,165,361      
Vesting of restricted stock units   $ 2 (2)    
Vesting of restricted stock units, shares   286,864      
Surrender of shares to pay withholding taxes (2,526)   (2,526)    
Surrender of shares to pay withholding taxes, shares   (92,398)      
Equity-based compensation 3,762   3,762    
Exercise of warrants   $ 3 (3)    
Exercise of warrants, shares   254,627      
Net Income (Loss) 36,201       36,201
Ending balance at Feb. 03, 2024 $ 37,218 $ 107 213,236   (176,125)
Ending balance, shares at Feb. 03, 2024 10,614,454 10,614,454      
Issuance of common stock, net of underwriting and issuance costs $ 28,549 $ 10 28,539    
Issuance of common stock, net of underwriting and issuance costs, shares   1,000,000      
Third-party common stock issuance costs 97   97    
Repurchase of treasury stock (523)     $ (523)  
Repurchase of treasury stock, Shares       (19,831,000)  
Vesting of restricted stock units   $ 2 (2)    
Vesting of restricted stock units, shares   240,187      
Surrender of shares to pay withholding taxes (2,540) $ (2) (2,538)    
Surrender of shares to pay withholding taxes, shares   (83,252)      
Cash dividend and dividend equivalents declared ($0.21 per share) (3,025)   (3,025)    
Equity-based compensation 6,510   6,510    
Exercise of warrants   $ 36 (36)    
Exercise of warrants, shares   3,572,664      
Net Income (Loss) 39,483       39,483
Ending balance at Feb. 01, 2025 $ 105,769 $ 153 $ 242,781 $ (523) $ (136,642)
Ending balance, shares at Feb. 01, 2025 15,324,222 15,344,053   (19,831)  
v3.25.1
Consolidated Statements of Shareholder's Equity (Deficit) (Parenthetical)
 12 Months Ended
Feb. 01, 2025
$ / shares
Statement of Stockholders' Equity [Abstract]  
Cash dividend declared per share $ 0.21
v3.25.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Net income $ 39,483 $ 36,201 $ 42,175
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 21,325 22,921 25,753
Impairment of long-lived assets 772 189 1,413
Adjustment for exited retail stores (843) (767) (250)
Loss on disposal of fixed assets 105 70 267
Loss on extinguishment of debt 8,570    
Loss on debt refinancing   12,702  
Loss due to hurricane 2    
Noncash interest expense 1,652 3,519 5,869
Equity-based compensation 6,510 3,762 3,505
Deferred rent incentives (126) (231) (558)
Deferred income taxes (1,578) 908 (645)
Changes in operating assets and liabilities:      
Accounts receivable 25 1,997 (1,228)
Inventories, net (8,117) (2,674) 5,439
Prepaid expenses and other current assets (2,386) (2,432) 8,393
Accounts payable 10,710 1,797 (10,626)
Accrued expenses and other current liabilities (2,113) (7,525) 631
Operating lease assets and liabilities (3,371) (6,672) (6,726)
Other noncurrent assets and liabilities (5,584) (452) 1,013
Net cash provided by operating activities 65,036 63,313 74,425
Investing activities:      
Purchases of property and equipment (14,267) (10,689) (9,189)
Capitalized software (3,488) (6,245) (5,878)
Net cash used in investing activities (17,755) (16,934) (15,067)
Financing activities:      
Prepayment premium on Term Loan (2,562)    
Proceeds from issuance of Term Loan   164,050  
Third-party debt financing costs   (3,692)  
Proceeds from issuance of common stock, net of underwriting costs 29,450    
Third-party common stock issuance costs (804)    
Share repurchase costs, net of commission and fees (523)    
Surrender of shares to pay withholding taxes (2,538) (2,526) (1,245)
Cash dividend paid to shareholders (2,899)    
Net cash used in financing activities (74,026) (71,260) (8,262)
Decrease in restricted cash (5)    
Net change in cash and cash equivalents and restricted cash (26,750) (24,881) 51,096
Cash and cash equivalents and restricted cash:      
Beginning of Period 62,540 [1] 87,421 [1] 36,325
End of Period [1] 35,790 62,540 87,421
Term Loan [Member]      
Financing activities:      
Principal repayments $ (94,150) (6,562)  
Priming Term Loan [Member]      
Financing activities:      
Principal repayments   (201,349) $ (7,017)
Subordinated Term Loan-Related Party [Member]      
Financing activities:      
Principal repayments   $ (21,181)  
[1] Includes $0.4 million of restricted cash for the fiscal years ended February 1, 2025, February 3, 2024 and January 28, 2023. The Company recorded restricted cash in Prepaid expenses and other current assets as presented in the consolidated balance sheets.
v3.25.1
Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Millions
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Statement of Cash Flows [Abstract]      
Restricted cash $ 0.4 $ 0.4 $ 0.4
Restricted Cash, Statement of Financial Position [Extensible Enumeration] Prepaid Expense and Other Assets, Current Prepaid Expense and Other Assets, Current Prepaid Expense and Other Assets, Current
v3.25.1
Cybersecurity Risk Management, Strategy, and Governance
 12 Months Ended
Feb. 01, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Item 1C. Cybersecurity

Overview

Maintaining the safety and security of our systems and data is essential to the success of our company. As with other industries, there are several cybersecurity threats we encounter. These include phishing, ransomware, and denial of service, among others. Our suppliers, vendors, and other partners face similar threats. A cybersecurity incident impacting us or any of

these entities could materially affect our operations, performance, or financial results. See Item 1A, Risks Related to Information Security for additional details.

The governance of our risk management program is a partnership between our cross functional management team and our Board. This program includes both a cyber team led by our Chief Information Officer (“CIO”), as well as an Enterprise Risk Management (“ERM”) program led by our head of compliance. Our CIO has over 30 years of information technology experience, including over 4 years of direct oversight of information security. Risk oversight for both our cyber and ERM programs is primarily the responsibility of the Audit Committee of the Board who receive quarterly updates, at a minimum, with additional updates shared to the full Board on a recurring basis.

Cyber Security Team

Our cross functional cyber security team is responsible for the overall information security strategy, risk assessment, cyber threat detection and response, and execution of an ongoing cyber program. The goal of this team is to lower the impact and likelihood of persistent threats to the extent feasible, including safeguarding of key information and the integrity of key systems. We also partner with third-party vendors to enhance our program including monitoring, pen testing, and other assessments and programs. Additionally, the Company has implemented certain information security measures which include security reviews as well as internal training and testing programs.

Enterprise Risk Management (ERM) Program

Our cyber risks are included in our ERM program. Our ERM program is led by our Senior Director of Compliance and Internal Audit and has oversight from our Audit Committee. This program includes a cross functional team including our senior leadership team and other key members of management. Risk reduction plans are developed and updates are regularly assessed by the team. Our Audit Committee provides oversight and is briefed quarterly, at a minimum. In the event a cyber incident should occur, there are additional steps taken to mitigate cybersecurity risks and incidents.

As of the date of this filing, we are not aware of any current cybersecurity threats or cybersecurity incidents that have materially affected or are reasonably likely to materially affect our business, results of operations or financial condition.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]

Enterprise Risk Management (ERM) Program

Our cyber risks are included in our ERM program. Our ERM program is led by our Senior Director of Compliance and Internal Audit and has oversight from our Audit Committee. This program includes a cross functional team including our senior leadership team and other key members of management. Risk reduction plans are developed and updates are regularly assessed by the team. Our Audit Committee provides oversight and is briefed quarterly, at a minimum. In the event a cyber incident should occur, there are additional steps taken to mitigate cybersecurity risks and incidents.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]

The governance of our risk management program is a partnership between our cross functional management team and our Board. This program includes both a cyber team led by our Chief Information Officer (“CIO”), as well as an Enterprise Risk Management (“ERM”) program led by our head of compliance. Our CIO has over 30 years of information technology experience, including over 4 years of direct oversight of information security. Risk oversight for both our cyber and ERM programs is primarily the responsibility of the Audit Committee of the Board who receive quarterly updates, at a minimum, with additional updates shared to the full Board on a recurring basis.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Risk oversight for both our cyber and ERM programs is primarily the responsibility of the Audit Committee of the Board who receive quarterly updates, at a minimum, with additional updates shared to the full Board on a recurring basis.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] both our cyber and ERM programs is primarily the responsibility of the Audit Committee of the Board who receive quarterly updates, at a minimum, with additional updates shared to the full Board on a recurring basis.
Cybersecurity Risk Role of Management [Text Block]

Enterprise Risk Management (ERM) Program

Our cyber risks are included in our ERM program. Our ERM program is led by our Senior Director of Compliance and Internal Audit and has oversight from our Audit Committee. This program includes a cross functional team including our senior leadership team and other key members of management. Risk reduction plans are developed and updates are regularly assessed by the team. Our Audit Committee provides oversight and is briefed quarterly, at a minimum. In the event a cyber incident should occur, there are additional steps taken to mitigate cybersecurity risks and incidents.

As of the date of this filing, we are not aware of any current cybersecurity threats or cybersecurity incidents that have materially affected or are reasonably likely to materially affect our business, results of operations or financial condition.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] The governance of our risk management program is a partnership between our cross functional management team and our Board. This program includes both a cyber team led by our Chief Information Officer (“CIO”), as well as an Enterprise Risk Management (“ERM”) program led by our head of compliance.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our CIO has over 30 years of information technology experience, including over 4 years of direct oversight of information security.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]

Our cross functional cyber security team is responsible for the overall information security strategy, risk assessment, cyber threat detection and response, and execution of an ongoing cyber program. The goal of this team is to lower the impact and likelihood of persistent threats to the extent feasible, including safeguarding of key information and the integrity of key systems. We also partner with third-party vendors to enhance our program including monitoring, pen testing, and other assessments and programs. Additionally, the Company has implemented certain information security measures which include security reviews as well as internal training and testing programs.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Pay vs Performance Disclosure      
Net Income (Loss) $ 39,483 $ 36,201 $ 42,175
v3.25.1
Insider Trading Arrangements
 3 Months Ended
Feb. 01, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.1
General
 12 Months Ended
Feb. 01, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
General

1. General

J.Jill is a national lifestyle brand that provides apparel, footwear and accessories designed to help its customers move through a full life with ease. The brand represents an easy, thoughtful and inspired style that celebrates the totality of all women and designs its products with its core brand ethos in mind: keep it simple and make it matter. J.Jill offers a high touch customer experience through over 250 stores nationwide and a robust ecommerce platform. J.Jill is headquartered outside Boston.

J.Jill, Inc. is a holding company. Jill Acquisition LLC, its wholly-owned subsidiary, and J.Jill Gift Card Solutions, Inc., a wholly-owned subsidiary of Jill Acquisition LLC, are the operating companies for the business assets.
v3.25.1
Summary of Significant Accounting Policies
 12 Months Ended
Feb. 01, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

The Company’s fiscal year ends on the Saturday, in January or February, nearest the last day of January, resulting in an additional week of results every five or six years. Fiscal Years 2024 and 2022 contained 52-weeks of operations whereas the Fiscal Year 2023 contained 53-weeks of operations.

Financial Statement Presentation

Certain reclassifications have been made to prior periods to conform with the current period presentation.

On the consolidated statements of operations and comprehensive income, the Company reclassified amounts for interest income for fiscal years ended February 3, 2024 and January 28, 2023 from Interest expense, net to a separate financial statement line item to conform with the current presentation for the fiscal year ended February 1, 2025.

On the consolidated statement of cash flows, the Company reclassified approximately $2.5 million of prepaid software project costs from Prepaid expenses and other current assets to Other assets for the Fiscal Year ended February 3, 2024. For further details refer to the “Cloud-Based Software Arrangements” section below. In addition, the Company presented restricted cash of $0.4 million for fiscal years ended February 3, 2024 and January 28, 2023 as a separate item in the consolidated statement of cash flows to conform with the current presentation for the fiscal year ended February 1, 2025.

Correction of Immaterial Error

Prior to Fiscal Year 2024, the Company had recorded processing fee income related to customer sales returns as a contra expense within Selling, general and administrative expenses rather than as a component of Net sales in the consolidated statements of operations and comprehensive income. Beginning in Fiscal Year 2024, the Company recorded this revenue as a component of Net sales within the Direct channel. The Company reclassified this income, which increased previously reported Net sales and Selling, general and administrative expenses by approximately $3.4 million and $3.3 million for Fiscal Years ended February 3, 2024 and January 28, 2023, respectively. The Company has concluded that the reclassification of this income was immaterial to the prior period financial statements.

Use of Estimates

The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and judgments that affect reported amounts of assets, liabilities, shareholders’ equity, net sales and expenses, and the disclosure of contingent assets and liabilities. Significant estimates relied upon in preparing these consolidated financial statements include, but are not limited to, revenue recognition, including accounting for outstanding gift cards that will ultimately not be redeemed (“gift card breakage”) and estimated merchandise returns; estimating self-insurance reserves; estimating the value of inventory; impairment assessments for goodwill and other indefinite-lived intangible assets, and long-lived assets; discount rates used in the measurement of right-of-use assets and operating lease liabilities; and estimating equity-based compensation expense. Actual results could differ from those estimates, and such differences could be material.

Principles of Consolidation

The accompanying consolidated financial statements include the assets, liabilities and results of operations of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements.

Supplemental Cash Flow Information

The following table shows supplemental cash flow information (in thousands):

 

 

 

For the Fiscal Year Ended

 

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

Cash paid for interest, net of capitalized interest

 

$

15,426

 

 

$

25,948

 

 

$

11,722

 

Cash paid for taxes

 

 

15,563

 

 

 

13,355

 

 

 

19,686

 

Cash received for income tax refunds

 

 

148

 

 

 

35

 

 

 

10,257

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

 

12,473

 

 

 

2,061

 

 

 

1,789

 

Noncash investing and financing activities:

 

 

 

 

 

 

 

 

 

Capital expenditures financed with the ending balance in accounts payable and accrued expenses

 

 

381

 

 

 

318

 

 

 

386

 

Segment Reporting

The Company determined its operating segments on the same basis that it assesses performance and makes operating decisions. The Company’s operating segments consist of its Retail and Direct channels, which have been aggregated into one reportable segment.

All of the Company’s identifiable assets are located in the United States, which is where the Company is domiciled. The Company has immaterial sales outside the United States. No customer represents more than 10% of total revenues for any period presented.

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting, Improvements to Reportable Segment Disclosures”. For the Fiscal Year ended February 3, 2025, the Company adopted ASU 2023-07, refer to Note 3. Accounting Standards and Note 12. Segment Reporting for additional details.

Cash and cash equivalents

Cash and cash equivalents include cash on hand, demand deposits and all highly liquid investments with original maturities at the time of purchase of three months or less. Certain cash account balances exceed FDIC insured limits of $250,000 per account and, as a result, there is a concentration of credit risk related to amounts in excess of insurance limits. We monitor the financial stability of these financial institutions and believe that we are not exposed to any significant credit risk in cash.

Restricted Cash

The Company's restricted cash balance represents an imprest cash account used for the funding of employee healthcare costs. The balance of restricted cash as of February 1, 2025, February 3, 2024 and January 28, 2023 was $0.4 million, which is included in Prepaid expenses and other current assets on the consolidated balance sheets.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statement of cash flows:

 

 

 

For the Fiscal Year Ended

 

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

 Cash and cash equivalents

 

$

35,427

 

 

$

62,172

 

 

$

87,053

 

 Restricted cash reported in other current assets

 

 

363

 

 

 

368

 

 

 

368

 

 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows

 

$

35,790

 

 

$

62,540

 

 

$

87,421

 

Accounts Receivable

The beginning balances at January 28, 2023 for accounts receivable arising from contracts with customers was $7.0 million with ending balances included in "Receivables, net" in the Consolidated Balance Sheets.

The Company’s accounts receivable relates primarily to payments due from banks for credit and debit card transactions for approximately 2 to 5 days of sales. These receivables do not bear interest. The Company occasionally sells inventory to liquidators, and if these sales occur near the end of a reporting period, they are also included in accounts receivable.

Inventories

Inventory consists of finished goods held for sale. Inventory is stated at the lower of cost or net realizable value. Cost is calculated using the weighted average method of accounting, and includes the cost to purchase merchandise from the Company’s manufacturers plus duties, tariffs, inbound freight and commissions. The net realizable value of the Company’s inventory is estimated based on historical experience, current and forecasted demand, and market conditions. The allowance for excess and obsolete inventory requires management to make assumptions and to apply judgment regarding a number of factors, including estimates applying past and projected sales performance to current inventory levels. As of February 1, 2025 and February 3, 2024, an inventory reserve of $1.1 million and $0.8 million has been recorded, respectively. The Company sells excess inventory in its stores, on-line at www.jjill.com and occasionally to inventory liquidators.

Inventory from domestic suppliers is recorded when it is received at the distribution center. Inventory from foreign suppliers is recorded when goods are cleared for export on board the ship at the port of shipment.

Property and Equipment

Property and equipment purchases are recorded at cost. Property and equipment is presented net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized over the shorter of the term of the related lease or the estimated useful lives of the improvements. The Company capitalizes as property and equipment certain qualified costs incurred in connection with the development of internal-use software. Capitalization of internal-use software begins during the application development stage and ends when the software is available for its intended use. Capitalized internal-use software is amortized on a straight-line basis over the estimated useful life of the software. Expenditures for repairs and maintenance are charged to expense as incurred. Expenditures for betterments and major improvements that significantly enhance the value and increase the estimated useful life of the asset are capitalized and depreciated over the new estimated useful life. The carrying amounts of assets sold or retired and the related accumulated depreciation are eliminated in the year of disposal, and any resulting gains or losses are included in the consolidated statements of operations and comprehensive income. See Note 7. Property and Equipment for additional information.

Estimated useful lives of property and equipment asset categories are as follows:

 

Furniture, fixtures and equipment

5-7 years

Computer software and hardware

3-7 years

Leasehold improvements

Shorter of estimated useful life or lease term

Capitalized Interest

The cost of interest that is incurred in connection with long-term leasehold improvements and software related projects is capitalized using a weighted average interest rate. These costs are included in property and equipment and amortized over the useful life of the related property or equipment.

Long-lived Assets

The carrying value of long-lived assets, including amortizable identifiable intangible assets, and asset groups are evaluated whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant decrease in the market price of an asset, a significant adverse change in the extent or manner in which an asset is being used or a significant decrease in its physical condition, and operating performance that demonstrates continuing cash flow losses associated with an asset or asset group. A potential impairment has occurred if the projected future undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group are less than the carrying value of the asset or asset group. The estimate of cash flows includes management’s assumptions of cash inflows and outflows directly resulting from the use of the asset in operation. If the carrying value exceeds the sum of the undiscounted cash flows, an impairment charge is recorded equal to the excess of the asset or asset group’s carrying value over its fair value. Fair value is measured based on a projected discounted cash flow model using a discount rate the Company believes is commensurate with the market participant rate. Any impairment charge would be recognized within operating expenses.

Goodwill and Indefinite-lived Intangible Assets

Goodwill represents the excess of the purchase price over the fair values of the assets acquired and liabilities assumed in conjunction with an acquisition. Goodwill and indefinite-lived intangible assets are not amortized but are reviewed for impairment at least annually or more frequently between annual tests when events or changes in circumstances indicate that the carrying value may not be recoverable.

In Fiscal Year 2024, we continue to evaluate goodwill for impairment on an annual basis, using the last day of our eleventh fiscal month as the test date, rather than the end of our fiscal year. This change in the impairment test date, implemented in Fiscal Year 2023, reduces resource constraints related to the Company’s year-end close and financial reporting process and provides additional time for completing impairment testing. It also aligns with the Company’s long-range planning and forecasting processes. This change does not represent a material change to the Company’s method of applying an accounting principle, and therefore does not delay, accelerate, or avoid an impairment charge. Judgments regarding indicators of potential impairment are based on market conditions and operational performance of the business.

The Company’s policy is to perform a quantitative analysis every three years. During those years when a quantitative assessment is not performed initially, the Company may assess these assets for impairment using a qualitative approach to determine whether conditions exist to indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying value. If management concludes, based on its assessment of relevant events, facts and circumstances, that it is more likely than not that an impairment exists, then a quantitative analysis is performed to determine if there is any impairment.

See Note 6. Goodwill and Other Intangible Assets for additional information.

Self-Insured Group Health Insurance

The Company transitioned to a self-insured group health insurance program with certain stop-loss limits. Such costs are accrued based on known claims and estimates of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates. The accrued liability for self-insurance is included in Accrued expenses and other current liabilities on the consolidated balance sheets.

Revenue Recognition

Revenue is primarily derived from the sale of apparel and accessory merchandise through our retail stores and through our website and catalog orders. The Company recognizes revenue when its single performance obligation is met at the time when the control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. Revenue from our Retail channel is recognized at the time of sale and revenue from our Direct channel is recognized upon shipment of merchandise to the customer.

The Company has a return policy where merchandise returns will be accepted within 90 days of the original purchase date. At the time of sale, the Company records a reserve for merchandise returns, which are estimated using the expected value method based on historical prior returns experience and expected future returns. The estimated sales reserve is recorded as a return asset (and corresponding adjustment to cost of goods sold) for the cost of inventory and a return liability for the amount to settle the return with a customer (and a corresponding adjustment to revenue). The return asset and return liability are recorded in Prepaid expenses and other current assets, and Accrued expenses and other current liabilities, respectively, in the consolidated balance sheets. The Company collects and remits sales and use taxes in all states in which Retail and Direct sales occur and taxes are applicable. These taxes are reported on a net basis and are thereby excluded from revenue.

The Company sells gift cards without expiration dates to customers. The Company does not charge administrative fees on unused gift cards. Proceeds from the sale of gift cards are recorded as a contract liability until the customer redeems the gift card or when the likelihood of redemption is remote. Based on historical experience, the Company estimates the value of gift card breakage and will not be escheated under statutory state unclaimed property laws. This gift card breakage is recognized as revenue over the time period established by the Company’s historical gift card redemption pattern.

The Company recognizes revenues from shipments to customers when the shipping and handling activities occur and will accrue those related costs. Shipping and handling costs are recorded in Selling, general and administrative expenses.

Costs of Goods Sold

The Company’s costs of goods sold includes the direct costs of sold merchandise, which include customs, taxes, duties, commissions and inbound shipping costs, inventory shrinkage, and adjustments and reserves for excess, aged and obsolete inventory. Costs of goods sold does not include distribution center costs and allocations of indirect costs, such as occupancy, depreciation, amortization, or labor and benefits.

Selling, General and Administrative Expenses

Selling, general and administrative expenses consist primarily of payroll and related expenses, occupancy costs, information systems costs and other operating expenses related to our stores and to our operations at our headquarters, including utilities, depreciation and amortization. These expenses also include marketing expense, including catalog production and mailing costs, warehousing, distribution and outbound shipping costs, customer service operations, consulting and software services, natural disaster related costs, professional services and other administrative costs.

Outbound shipping costs to customers recorded in Selling, general and administrative expenses were $21.4 million, $20.2 million, and $20.4 million for the Fiscal Years 2024, 2023 and 2022, respectively.

Loss Contingencies

The Company accrues for legal costs when it is both probable that a loss will be incurred, and the amount of the loss is reasonably estimable. The Company evaluates pending litigation and other contingencies at least quarterly and adjusts the accrual for such contingencies for changes in probable and reasonably estimable losses. The Company includes an estimate for related legal costs in the Selling, general and administrative expenses line item in the consolidated statements of operations and comprehensive income at the time such costs are both probable and reasonably estimable.

Advertising Costs

The Company incurs costs to produce, print, and distribute its catalogs. Catalog costs are recorded to Prepaid and other current assets in the consolidated balance sheets when paid, and expensed when the catalog is mailed to the customer (the first time the advertising occurs). Catalog advertising expenses were $18.0 million, $17.0 million, and $16.8 million for the Fiscal Years 2024, 2023 and 2022, respectively. The costs are included in Selling, general and administrative expenses in the consolidated statements of operations and comprehensive income.

Other advertising costs are recorded as incurred. Other advertising costs recorded were $21.4 million, $21.0 million, and $22.0 million for the Fiscal Years 2024, 2023 and 2022, respectively. The costs are included in Selling, general and administrative expenses in the consolidated statements of operations and comprehensive income.

Operating Leases

The Company determines if an arrangement is a lease at inception. Lease agreements will typically exist with lease and non-lease components, which are generally accounted for separately. The Company has elected not to recognize right-of-use assets or lease obligations for leases with an initial term of twelve months or less.

The Company recognizes operating lease liabilities equal to the present value of the lease payments and operating lease assets representing the right to use the underlying asset for the lease term. The lease expense for lease payments is recognized on a straight-line basis over the lease term.

As the Company’s leases do not provide an implicit rate, the Company uses an Incremental Borrowing Rate (“IBR”) based on the information available at lease commencement in determining the present value of lease payments. The IBR is estimated using a secured borrowing approach, which considers the Company’s credit rating based on a combination of public ratings, synthetic credit rating models, and secured borrowing activities. In determining the IBR, the Company also considers the economic environment at lease commencement, including prevailing market interest rates and adjustments for the Company’s credit profile. The operating lease assets include any lease payments made prior to lease commencement and are reduced by any lease incentives.

Under lease accounting guidance, for any new leases entered into, the Company assesses if it is reasonably certain to exercise lease options to extend or terminate the lease for inclusion (or exclusion) in the lease term when the Company measures the lease liability. The depreciable life of any assets and leasehold improvements are limited by the expected lease term.

For certain lease agreements, the Company allocates the consideration in the agreement to separate lease components by determining the relative standalone price of separate lease and non-lease components. Certain of the Company’s retail operating leases include variable rental payments based on a percentage of retail sales over contractual levels. Variable rental payments are recognized in the consolidated statements of operations and comprehensive income in the period in which the obligation for those payments is incurred. If such variable operating leases arise that include incentives from landlords in the form of cash, the Company will record the full amount of the incentive when specific performance criteria are met as a deferred liability. The deferred liability is amortized into income as a reduction of rent expense over the term of the applicable lease, including options to extend if they are reasonably certain to be exercised. The Company recognizes those liabilities to be amortized within one year as current liability and those greater than one year as long-term liability. For purposes of recognizing these incentives and rental expenses on a straight-line basis, the Company uses the date it obtains the legal right to use and control the lease asset to begin amortization, which is generally when the Company takes possession of the asset.

Cloud-Based Software Arrangements

Certain costs incurred to implement software development on cloud computing arrangements hosted by third party vendors are capitalized when incurred during the application development phase and recognized as Prepaid expenses and other current assets for the current portion and as Other assets for the long-term portion. Implementation costs are subsequently amortized on a straight-line basis over the expected term of the related cloud service, beginning on the date the related software or module is ready for its intended use. The amortization of cloud-based software implementation costs is recorded as a component of Selling, general, and administrative expenses, the same line item as the expense for the associated hosting arrangement. The carrying value of cloud computing implementation costs are tested for impairment when an event or circumstance indicates that the asset might be impaired. Cloud computing arrangement implementation costs are classified within operating activities in the consolidated statements of cash flows.

For the Fiscal Years ended February 1, 2025 and February 3, 2024, the Company amortized $0.9 million and $0.6 million, respectively, of cloud-based software implementation costs.

As of February 1, 2025, the Company had $9.5 million of gross capitalized cloud-based software implementation costs and $0.9 million of related accumulated amortization, for a net balance of $8.6 million, made up of $1.9 million recorded within Prepaid expenses and other current assets and $6.7 million recorded within Other assets on the Company’s consolidated balance sheets.

As of February 3, 2024, the Company had $2.5 million of gross capitalized cloud-based software implementation costs and $0.6 million of related accumulated amortization, for a net balance of $1.9 million, made up of $0.9 million recorded within Prepaid expenses and other current assets and $1.0 million recorded within Other assets on the Company’s consolidated balance sheets.

Debt Issuance Costs

The Company defers costs directly associated with acquiring third-party financing. Debt issuance costs are deferred and amortized using the effective interest rate method over the term of the related long-term debt agreement and the straight-line method for the revolving credit agreement. Debt issuance costs related to long-term debt are reflected as a direct deduction from the carrying amount of the debt on the Company’s consolidated balance sheets. From time-to-time the Company could make prepayments on the long-term debt and a portion of the debt issuance costs associated with the prepayment would be accelerated and expensed at that time.

Interest Income

The Company recorded interest income of $2.6 million, $2.8 million and $1.2 million for Fiscal Years 2024, 2023 and 2022, respectively.

Income Taxes

The Company accounts for income taxes using the asset and liability method and elected to be taxed as a C corporation. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying values and their respective tax bases, using enacted tax rates expected to be applicable in the years in which the temporary differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company evaluates the realizability of its deferred tax assets and establishes a valuation allowance when it is more likely than not that all or a portion of the deferred tax assets will not be realized. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected, scheduling of anticipated reversals of taxable temporary differences, and considering prudent and feasible tax planning strategies.

The Company records liabilities for uncertain income tax positions based on a two-step process. The first step is recognition, where an individual tax position is evaluated as to whether it has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have less than a 50% likelihood of being sustained, no tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, the Company performs the second step of measuring the benefit to be recorded. The amount of benefit that may be recognized is the largest amount that has greater than 50% likelihood of being realized on ultimate settlement. The actual benefits ultimately realized may differ from the estimates. In future periods, changes in facts, circumstances and new information may require the Company to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in income tax expense and liability in the period in which such changes occur.

Any interest or penalties incurred are recorded in Income tax expense in the accompanying consolidated statements of operations and comprehensive income. The Company incurred immaterial amounts of interest expense and penalties related to income taxes for Fiscal Years 2024, 2023 and 2022.

Comprehensive Income

Comprehensive income is a measure of net income and all other changes in equity that result from transactions other than with equity holders and would normally be recorded in the consolidated statements of shareholders’ equity and the consolidated statements of comprehensive income. The Company’s management has determined that net income is the only component of the Company’s comprehensive income. Accordingly, there is no difference between net income and comprehensive income.

Share-Based Payment

The Company accounts for share-based payment for employees and directors by recognizing the fair value of share-based payments as an expense in the calculation of net income, based on the grant-date fair value. The Company recognizes share-based compensation expense in the periods in which the employee or director is required to provide service, which is generally over the vesting period of the individual equity instruments. The fair value of the share-based awards is determined using either the Black-Scholes option pricing model, Monte Carlo simulation model or the stock price on the date of grant.

Liability-classified awards issued to non-employees are measured at the end of the reporting period and must be re-measured at each reporting period until a grant date is established and the awards are issued. Once the grant date is established and the options are issued, they become equity-classified and the corresponding liability is reclassified from accrued liabilities to additional paid-in capital on the consolidated balance sheets. Compensation cost for each period until grant date establishment and the awards are vested is based on the change in the fair value of the liability-classified awards each reporting period. Ultimately, the share-based compensation expense recognized for a liability- classified award equals the amount for which the award granted and vested.

On December 9, 2024, the Board awarded 100,000 performance-based stock options to Elm St Advisors, LLC (“Elm Street”) under the J.Jill, Inc. Omnibus Equity Incentive Plan (“2024 Elm Street Award”). The 2024 Elm Street Award vests every two months in three equal installments as Elm Street provides its services over the six-month term and upon Elm Street successfully completing certain performance milestones. The 2024 Elm Street Award expires three years from the date of grant if unexercised. Refer to Note 19. Subsequent Events for additional details.

Share-based awards granted by the Company during Fiscal Year 2024 included both equity-classified and liability-classified awards and compensation expense for these awards was recognized in Selling, general, and administrative expenses in the consolidated statements of operations and comprehensive income. Forfeitures were recorded as they occurred.

All of the share-based awards granted by the Company to its employees during Fiscal Years 2024, 2023 and 2022 were considered equity-classified awards and compensation expense for these awards was recognized in Selling, general, and administrative expenses in the consolidated statements of operations and comprehensive income. Forfeitures were recorded as they occurred.

Earnings Per Share

Basic net income per common share attributable to common shareholders is calculated by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income per common share attributable to common shareholders is calculated by dividing net income attributable to common shareholders by the diluted weighted average number of common shares outstanding for the period. There were 0.6 million, 0.3 million and 0.3 million of potentially dilutive securities outstanding for Fiscal Years 2024, 2023 and 2022, respectively.

Credit Card Agreement

During Fiscal Year 2023 the Company entered into an amended and restated arrangement with a third party to provide a private label credit card to its customers through January 31, 2031, and will automatically renew thereafter for successive one-year terms, unless either party provides a notice of intention to terminate. The Company does not bear the credit risk associated with the private label credit card at any point prior to the termination of the agreement, at which point the Company would be obligated to purchase the receivables.

The Company receives royalty payments through its private label credit card agreement. The royalty payments are recognized as revenue when they are earned each month. Royalty payments recognized were $3.7 million, $2.4 million, and $3.9 million for the Fiscal Years 2024, 2023 and 2022, respectively.

The Company also receives reimbursements for costs of marketing programs related to the private label credit card, which are recorded as revenue as earned and the costs incurred are recorded as Selling, general and administrative expenses in the accompanying

consolidated statements of operations and comprehensive income. Reimbursements for costs of marketing programs of $1.6 million, $1.3 million, and $1.6 million were recognized in revenue in Fiscal Years 2024, 2023 and 2022, respectively.

The previous credit card agreement provided a signing bonus to the Company, which was recognized as revenue through August 2023. The amended and restated agreement provided for an upfront payment which is being recorded as revenue on a straight line basis through January 2031. See Note 4. Revenues for additional information related to our upfront payment.

Employee Benefit Plan

The Company has a 401(k) retirement plan covering all eligible employees who meet certain age and employment requirements pursuant to Section 401(k) of the Internal Revenue Code. Subject to certain dollar limits, eligible employees may contribute a portion of their pretax annual compensation to the plan, on a tax-deferred basis. The plan operates on a calendar year basis. The Company contributes up to 50% of the first 6% of the gross salary of the employee, which vests immediately. Discretionary contributions made by the Company for the Fiscal Years 2024, 2023 and 2022 were $1.9 million, $1.5 million, and $1.2 million, respectively.

Self-Insured Group Health Insurance Reserves

During the fourth quarter of Fiscal Year 2024, the Company transitioned to a self-insured group health insurance program. Prior to this transition, the Company had fully insured cost group health insurance programs. The Company is now self-insured through retentions or deductibles with stop-loss insurance for medical claims that reach a certain limit per claim. The Company records its liability for estimated incurred losses based on historical claim data in the accompanying consolidated financial statements on an undiscounted basis. While the Company believes these reserves to be adequate, it is possible that the ultimate liabilities will exceed such estimates. Such costs are accrued based on known claims and estimates of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates. The accrued liability for self-insurance is included in Accrued expenses and other current liabilities on the consolidated balance sheets.

Concentration of Credit Risks

Financial instruments that potentially subject the Company to concentrations of credit risk principally consist of cash held in financial institutions and accounts receivable. The Company considers the credit risk associated with these financial instruments to be minimal. Cash is held by financial institutions with high credit ratings and the Company has not historically sustained any credit losses associated with its cash balances. The Company evaluates the credit risk associated with accounts receivable to determine if an allowance for estimated credit losses is necessary. As of February 1, 2025 and February 3, 2024, the Company determined that no allowance for estimated credit losses was necessary.
v3.25.1
Accounting Standards
 12 Months Ended
Feb. 01, 2025
Accounting Standards Update and Change in Accounting Principle [Abstract]  
Accounting Standards

3. Accounting Standards

Recently Issued Accounting Standards

In October 2023, the FASB issued ASU 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative”. This ASU amends the FASB Accounting Standards Codification in response to the SEC’s disclosure update and simplification initiative. This guidance will be applied prospectively with effective date for each amendment to be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company is assessing what impact this guidance will have on the Company’s consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures”. This ASU requires enhanced income tax disclosures, including disaggregation of information in the rate reconciliation table and disaggregated information related to income taxes paid. The other amendments in this update improve the effectiveness and comparability of disclosures by (1) adding disclosures of pretax income (or loss) and income tax expense (or benefit), and (2) removing disclosures that are no longer considered cost beneficial or relevant. The amendments in ASU 2023-09 are effective for the fiscal year ending January 31, 2026. Early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on its disclosures in the Company’s consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, " Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40)." Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. These standards provide guidance to expand disclosures related to the disaggregation of income statement expenses. The standard requires, in the notes to the financial statements, disclosure of specified information about certain costs and expenses which includes purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense caption. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, on a retrospective or prospective basis, with early adoption permitted. The

Company is currently evaluating the impact that this guidance will have on its disclosures in the Company’s consolidated financial statements.

Recently Adopted Accounting Standards

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting, Improvements to Reportable Segment Disclosures”. This ASU enhances the disclosures required about a public entity’s reportable segments in its annual and interim condensed consolidated financial statements. The amendments in this update require additional detailed and enhanced information about reportable segments’ expense, including significant segment expenses and other segment items that bridge segment revenue, significant expenses to segment profit or loss. The ASU also requires disclosure of the title and position of the Chief Operating Decision Maker (“CODM”) on an annual basis as well as an explanation of how the CODM uses the reported measures and other disclosures. The amendments in this update do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The Company adopted ASU 2023-07 for the Fiscal Year ended February 1, 2025. Refer to Note 12. Segment Reporting for additional details.
v3.25.1
Revenues
 12 Months Ended
Feb. 01, 2025
Revenue from Contract with Customer [Abstract]  
Revenues

4. Revenues

Disaggregation of Revenue

The Company sells its apparel and accessory merchandise through its Retail and Direct channels. The following table presents revenues disaggregated by revenue source (in thousands):

 

 

 

For the Fiscal Year Ended

 

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

Retail

 

$

320,676

 

 

$

323,259

 

 

$

327,084

 

Direct

 

 

290,181

 

 

 

284,784

 

 

 

291,444

 

Net sales

 

$

610,857

 

 

$

608,043

 

 

$

618,528

 

Remaining Performance Obligations

As of February 1, 2025, the transaction price allocated to remaining performance obligations amount to $0.5 million, which relate to the marketing and promotion of the Company’s private label credit card program. This amount will be recognized as revenue evenly through January 2031.

Contract Liabilities

The Company recognizes a contract liability when it has received consideration from the customer and has a future obligation to the customer. Total contract liabilities consisted of the following (in thousands):

 

 

 

February 1, 2025

 

 

February 3, 2024

 

Contract liabilities:

 

 

 

 

 

 

Upfront payment (1)

 

$

486

 

 

$

570

 

Unredeemed gift cards (2)

 

 

7,003

 

 

 

7,005

 

Total contract liabilities

 

$

7,489

 

 

$

7,575

 
(1)
The current and noncurrent portions of the upfront payment received in connection with the private label credit card agreement are included in Accrued expenses and other current liabilities and Other long-term liabilities, respectively, in the Company’s consolidated balance sheets.
(2)
Revenue recognized for Fiscal Year 2024 related to the contract liability balance as of February 3, 2024 was $3,931.

For Fiscal Years 2024, 2023 and 2022, the Company recognized approximately $10.8 million, $11.1 million, and $10.5 million, respectively, of revenue related to gift card redemptions and breakage. Revenue recognized consists of gift cards that were part of the unredeemed gift card balance at the beginning of the period as well as gift cards that were issued and redeemed during the period.

As of January 28, 2023, contract liabilities for a signing bonus and the unredeemed gift card liability were $0.1 million and $7.1 million, respectively.

Practical Expedients and Policy Elections

The Company excludes from revenue all amounts collected from customers for sales taxes that are remitted to taxing authorities.

Shipping and handling activities that occur after control of related goods transfers to the customer are accounted for as fulfillment activities rather than assessing these activities as performance obligations.

The Company does not disclose the transaction price allocated to remaining performance obligations for contracts with customers that have an expected duration of one year or less. The Company applies the optional exemption to not disclose the transaction price allocated to remaining performance obligations where revenue represents sales-or-usage-based royalty. This optional exemption applies to royalty payments received from allowing a third party to use the J.Jill brand in providing a private label credit card to its customers through January 31, 2031. These royalties are based on an agreed-upon percentage of sales generated through the use of the private label credit card.
v3.25.1
Prepaid Expenses and Other Current Assets
 12 Months Ended
Feb. 01, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Prepaid Expenses and Other Current Assets

5. Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets include the following (in thousands):

 

 

 

February 1, 2025

 

 

February 3, 2024

 

Prepaid rent

 

$

2,260

 

 

$

1,921

 

Prepaid catalog costs

 

 

1,912

 

 

 

1,769

 

Prepaid store supplies

 

 

2,278

 

 

 

1,969

 

Prepaid insurance

 

 

1,360

 

 

 

1,299

 

Prepaid software project costs

 

 

1,894

 

 

 

883

 

Prepaid software maintenance costs

 

 

3,202

 

 

 

2,322

 

Returns reserve asset

 

 

2,732

 

 

 

2,681

 

Income tax receivable

 

 

281

 

 

 

1,779

 

Other prepaid expenses

 

 

3,585

 

 

 

2,492

 

Other current assets (a)

 

 

787

 

 

 

541

 

Total prepaid expenses and other current assets

 

$

20,291

 

 

$

17,656

 

 

(a)
Other current assets include restricted cash of $0.4 million which is used solely for funding employee healthcare costs.
v3.25.1
Goodwill and Other Intangible Assets
 12 Months Ended
Feb. 01, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

6. Goodwill and Other Intangible Assets

The balance of goodwill was $59.7 million at February 1, 2025 and February 3, 2024, respectively. The Company did not recognize any impairment losses for Fiscal Years 2024 and 2023. The accumulated goodwill impairment losses as of February 1, 2025 are $137.3 million.

A summary of other intangible assets as of February 1, 2025 and February 3, 2024 is as follows (in thousands):

 

 

 

 

 

February 1, 2025

 

 

 

Weighted Average Useful Life (Years)

 

Gross

 

 

Accumulated Amortization

 

 

Accumulated Impairment

 

 

Carrying Amount

 

Indefinite-lived:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Trade name

 

N/A

 

$

58,100

 

 

$

—

 

 

$

24,100

 

 

$

34,000

 

Definite-lived:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Customer relationships

 

13.2

 

 

134,200

 

 

 

104,565

 

 

 

2,620

 

 

 

27,015

 

Total intangible assets

 

 

 

$

192,300

 

 

$

104,565

 

 

$

26,720

 

 

$

61,015

 

 

 

 

 

 

February 3, 2024

 

 

 

Weighted Average Useful Life (Years)

 

Gross

 

 

Accumulated Amortization

 

 

Accumulated Impairment

 

 

Carrying Amount

 

Indefinite-lived:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Trade name

 

N/A

 

$

58,100

 

 

$

—

 

 

$

24,100

 

 

$

34,000

 

Definite-lived:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Customer relationships

 

13.2

 

 

134,200

 

 

 

99,334

 

 

 

2,620

 

 

 

32,246

 

Total intangible assets

 

 

 

$

192,300

 

 

$

99,334

 

 

$

26,720

 

 

$

66,246

 

 

Impairment Tests

General

Goodwill and indefinite-lived intangible assets are not amortized but are reviewed for impairment at least annually, or more frequently when events or changes in circumstances indicate that the carrying value may not be recoverable. Definite-lived intangible assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable. Judgments regarding indicators of potential impairment are based on market conditions and operational performance of the business.

The Company’s policy is to perform a quantitative analysis of goodwill and indefinite-lived intangible assets every three years. During those years when a quantitative assessment is not performed initially, the Company will assess these assets for impairment initially using a qualitative approach to determine whether conditions exist to indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying value. If management concludes, based on its assessment of relevant events, facts and circumstances, that it is more likely than not that an impairment exists, then a quantitative analysis is performed to determine if there is any impairment.

For goodwill, the quantitative assessment requires comparing the fair value of a reporting unit to its carrying value, including goodwill. The Company estimates fair value using the income approach. The income approach uses a discounted cash flow model, which involves significant estimates and assumptions, including preparation of revenue and profitability growth forecasts, selection of a discount rate, and selection of a terminal year multiple. These assumptions are classified as Level 3 inputs. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and no further testing is required. If the carrying amount exceeds the reporting unit’s fair value, a goodwill impairment charge is recognized for the amount in excess, not to exceed the total amount of goodwill allocated to that reporting unit. An impairment charge is recorded within the Company’s consolidated statements of operations and comprehensive income.

For other intangible assets, impairment losses are recorded to the extent that the carrying value of the intangible asset exceeds its fair value. The Company measures the fair value of its trade name using the relief from royalty method and the fair value of customer relationships using a recoverability approach. The most significant estimates and assumptions inherent in these approaches are the preparation of revenue forecasts, selection of royalty and discount rates and a terminal year multiple. These assumptions are classified as Level 3 inputs.

2024 Impairment Tests

For goodwill and other intangible assets, the Company performed the required impairment tests applying the qualitative approach and no impairments were indicated.

2023 Impairment Tests

During the fourth quarter of Fiscal Year 2023, the Company performed its annual assessment by electing to perform a quantitative assessment (the “2023 Impairment Test”). The 2023 Impairment Test was performed using the income approach (or discounted cash flows method) for goodwill, the relief-from-royalty method for indefinite-lived intangible assets and a recoverability analysis for definite-lived intangible assets. The estimated fair values of the reporting units and the indefinite-lived intangible assets, and the estimated undiscounted cash flows from the definite-lived intangible assets were above their carrying values resulting in no impairment of goodwill, the Company’s trade name (indefinite-lived intangible asset) and the Company’s customer list (definite-lived intangible asset). The most significant estimates and assumptions inherent in this approach are the preparation of revenue forecasts, selection of royalty and discount rates and a terminal year multiple. These assumptions are classified as Level 3 inputs. The key assumptions used under the income approach and relief-from-royalty method for the Fiscal Year 2023 Impairment Tests included the following:

•
Future cash flow assumptions - The Company’s projections for its two reporting units, Direct and Retail sales channels, were from historical experience and assumptions regarding future revenue growth and profitability trends. The Company’s analyses incorporated an assumed period of cash flows of 5 years with a terminal value.
•
Discount rate - The discount rate was based on an estimated weighted average cost of capital (“WACC”) for each reporting unit. The components of WACC are the cost of equity and the cost of debt, each of which requires judgment by management to estimate. The Company developed its cost of equity estimate based on perceived risks and predictability of future cash flows. The WACC used to estimate the fair values of the Company’s reporting units was 20.0%. A 1% change in this discount rate would not result in a goodwill impairment charge.
•
Royalty rate - The royalty rates utilized consider external market evidence and internal financial metrics including a review of available returns after the consideration of property, plant and equipment, working capital and other intangible assets. The royalty rate used to estimate the available returns for the Company’s trade name was 2.0%.

For goodwill and other intangible assets, the Company performed the required impairment tests applying the quantitative approach and no impairments were indicated.

Definite-Lived Intangible Assets

The definite-lived intangible assets are amortized over the period the Company expects to receive the related economic benefit, which for customer lists is based upon estimated future net cash inflows. The estimated useful lives of intangible assets are as follows:

 

Asset

Amortization Method

Estimated Useful Life

Customer lists

Pattern of economic benefit

9 - 16 years

Total amortization expense for these amortizable intangible assets was $5.2 million, $6.9 million, and $7.5 million for the Fiscal Years 2024, 2023 and 2022, respectively.

The estimated amortization expense for each of the next five years and thereafter is as follows (in thousands):

 

Fiscal Year

 

Estimated Amortization Expense

 

2025

$

4,693

 

2026

 

4,556

 

2027

 

4,418

 

2028

 

4,246

 

2029

 

4,109

 

Thereafter

 

4,993

 

Total

$

27,015

 
v3.25.1
Property and Equipment
 12 Months Ended
Feb. 01, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment

7. Property and Equipment

Property and equipment at February 1, 2025 and February 3, 2024 consist of the following (in thousands):

 

 

 

February 1, 2025

 

 

February 3, 2024

 

Leasehold improvements

 

$

115,546

 

 

$

108,741

 

Furniture, fixtures and equipment

 

$

49,495

 

 

 

48,276

 

Computer hardware and software

 

 

69,911

 

 

 

69,926

 

Total property and equipment, gross

 

 

234,952

 

 

 

226,943

 

Accumulated depreciation

 

 

(187,949

)

 

 

(176,546

)

 

 

 

47,003

 

 

 

50,397

 

Construction in progress

 

 

8,322

 

 

 

3,721

 

Property and equipment, net

 

$

55,325

 

 

$

54,118

 

Construction in progress is primarily comprised of leasehold improvements, furniture, fixtures and equipment related to unopened retail stores and costs incurred related to the implementation of certain computer software and hardware.

Capitalized software, subject to amortization, included in property and equipment at February 1, 2025 and February 3, 2024 had a cost basis of approximately $55.8 million and $54.6 million, respectively, and accumulated amortization of $45.6 million and $41.3 million, respectively. As of February 1, 2025 and February 3, 2024, internal use software costs capitalized were $3.5 million and $8.9 million, respectively.

Total depreciation expense recorded within Selling, general and administrative expenses on the consolidated statements of operations was $16.1 million, $16.0 million, and $18.2 million, for the Fiscal Years 2024, 2023 and 2022, respectively.

During Fiscal Years 2024 and 2023, the Company recorded noncash impairment charges of $0.5 million and $0.2 million, respectively, related to leasehold improvements at certain store locations driven by the actual performance at these locations. During Fiscal Year 2022, due to the Company’s revised outlook on future cash flows at certain store locations, the Company incurred noncash impairment charges of $0.8 million related primarily to leasehold improvements and furniture and fixtures at these locations.

The Company capitalized $0.4 million, $0.6 million and an immaterial amount of interest in connection with construction in progress for Fiscal Years 2024, 2023 and 2022, respectively.
v3.25.1
Accrued Expenses and Other Current Liabilities
 12 Months Ended
Feb. 01, 2025
Payables and Accruals [Abstract]  
Accrued Expenses and Other Current Liabilities

8. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities include the following (in thousands):

 

 

 

February 1, 2025

 

 

February 3, 2024

 

Accrued payroll and benefits

 

$

9,725

 

 

$

11,288

 

Accrued returns reserve

 

 

7,494

 

 

 

7,724

 

Gift cards redeemable

 

 

7,003

 

 

 

7,005

 

Accrued professional fees

 

 

2,309

 

 

 

1,629

 

Accrued corporate expenses (a)

 

 

1,458

 

 

 

2,158

 

Accrued retail expenses

 

 

1,382

 

 

 

2,746

 

Taxes, other than income taxes

 

 

2,635

 

 

 

2,709

 

Accrued occupancy

 

 

1,118

 

 

 

1,285

 

Self-insured group health insurance reserves

 

 

765

 

 

 

—

 

Other accrued employee costs

 

 

2,044

 

 

 

1,557

 

Other

 

 

4,546

 

 

 

4,182

 

Total accrued expenses and other current liabilities

 

$

40,479

 

 

$

42,283

 
(a)
Included within Accrued corporate expenses as of February 1, 2025 is a liability-classified share-based payment of $0.4 million related to stock options granted to Elm Street consultant, which are subject to remeasurement at each reporting date until a grant and vesting date is established. See Note 17 Share-Based Payment for further details.

The following table reflects the changes in the accrued returns reserve for Fiscal Years 2024, 2023 and 2022 (in thousands):

 

Accrued returns reserve

 

Beginning
of Period

 

 

Charged to
Expenses

 

 

Deductions

 

 

End of
Period

 

Fiscal Year Ended January 28, 2023

 

$

11,003

 

 

$

144,474

 

 

$

(148,775

)

 

$

6,702

 

Fiscal Year Ended February 3, 2024

 

 

6,702

 

 

 

161,217

 

 

 

(160,195

)

 

 

7,724

 

Fiscal Year Ended February 1, 2025

 

 

7,724

 

 

 

154,599

 

 

 

(154,829

)

 

 

7,494

 

 

The following table reflects the changes in the accrued self-insurance reserve for Fiscal Year 2024 (in thousands):

 

Self-insured group health insurance reserves

 

Beginning
of Period

 

 

Charged to
Expenses

 

 

Deductions

 

 

End of
Period

 

Fiscal Year Ended February 1, 2025

 

$

—

 

 

$

1,307

 

 

$

(542

)

 

$

765

 

 
v3.25.1
Debt
 12 Months Ended
Feb. 01, 2025
Debt Disclosure [Abstract]  
Debt

9. Debt

The components of the Company’s outstanding long-term debt at February 1, 2025 and February 3, 2024 were as follows (in thousands):

 

 

 

February 1, 2025

 

 

 

Outstanding Principal Balance

 

 

Original Issue Discount

 

 

Capitalized Fees & Expenses

 

 

Balance Sheet

 

Net long-term debt (Term Loan due 2028)

 

$

74,288

 

 

$

(3,652

)

 

$

(1,217

)

 

$

69,419

 

 

 

 

February 3, 2024

 

 

 

Outstanding Principal Balance

 

 

Original Issue Discount

 

 

Capitalized Fees & Expenses

 

 

Balance Sheet

 

Term Loan due 2028

 

$

168,438

 

 

$

(9,367

)

 

$

(3,123

)

 

$

155,948

 

Less: Current portion (including Excess Cash Flow payment)

 

 

(35,353

)

 

 

—

 

 

 

—

 

 

 

(35,353

)

Net long-term debt

 

$

133,085

 

 

$

(9,367

)

 

$

(3,123

)

 

$

120,595

 

The original issue discount and capitalized fees and expenses are amortized over the related term of the debt.

The Company recorded interest expense related to long-term debt of $14.1 million, $23.8 million, and $17.7 million, in Fiscal Years 2024, 2023 and 2022, respectively. During Fiscal Years 2024, 2023 and 2022, $1.6 million, $2.8 million and $3.1 million of debt discount and debt issuance cost related to long-term debt were amortized to interest expense, respectively.

Term Loan Credit Agreement

On April 5, 2023, the Company and Jill Acquisition LLC (the “Borrower”) entered into a Term Loan Credit Agreement (the “Term Loan Credit Agreement”) by and among the lenders party thereto and Jefferies Finance LLC, as administrative and collateral agent. The Term Loan Credit Agreement provides for a secured term loan facility in an aggregate principal amount of $175.0 million with a maturity date of May 8, 2028 (the “Term Loan Facility”). Loans under the Term Loan Credit Agreement bear interest at the Borrower’s election at (1) Base Rate (as defined in the Term Loan Credit Agreement) plus 7.00% or (2) Adjusted Term SOFR (as defined in the Term Loan Credit Agreement) plus 8.00%, with Adjusted Term SOFR subject to a floor rate of 1.00%.

In conjunction with the entry into the Term Loan Credit Agreement, the Company paid $3.7 million in third-party fees related to legal, consulting, agent and other fees. Of these costs, $3.1 million were deferred and presented as a direct reduction from the carrying amount of long-term debt on the consolidated balance sheet as of February 3, 2024 and are amortized through the line item Interest expense in the Company’s consolidated statements of operations and comprehensive income over the term of the Term Loan Credit Agreement using the effective interest method.

The Term Loan Facility is subject to mandatory repayment, subject to certain exceptions, including (i) 100% of the net proceeds of any incurrence of debt other than debt permitted in the Term Loan Credit Agreement, (ii) 100% of the net cash proceeds of certain asset sales/insurance proceeds, subject to reinvestment rights and certain other exceptions, and (iii) 95 days after the last day of the Fiscal Year, an annual payment ranging from 25%-75%, based on the First Lien Net Leverage Ratio, of the annual Excess Cash Flow (“ECF”), less certain voluntary prepayments made during the year, as defined in the Term Loan Credit Agreement.

The Term Loan Facility may be voluntarily prepaid after the one-year anniversary but on or prior to the two-year anniversary, subject to a premium of 3.0% of the aggregate principal amount being prepaid, and after the two-year anniversary without premium.

For Fiscal Year 2024, the Company would be required to make an Excess Cash Flow ("ECF") payment of $11.8 million prior to May 7, 2025 under the terms of the Term Loan Credit Agreement. However, the voluntary principal prepayments discussed below satisfied the ECF payment requirement and, accordingly, no ECF payment is required.

For Fiscal Year 2023, the amount that was expected to be repaid as an ECF payment of $26.6 million is included in the line item “Current portion of long-term debt” in the Company’s consolidated balance sheet for Fiscal Year 2023, in accordance with the provisions of the Term Loan Credit Agreement.

On May 10, 2024, the Company made a voluntary principal prepayment of $58.2 million on the Term Loan Credit Agreement, in lieu of the previously expected ECF payment of $26.6 million. The expected ECF payment was rejected by the lenders as permitted under the provisions of the Term Loan Credit Agreement. On June 21, 2024, the Company made an additional voluntary principal prepayment of $27.2 million (See Note 15. Shareholders’ Equity, Common Stock Issuance, for additional information). Together with the required quarterly payments, the Company has repaid $94.2 million in principal under the Term Loan Credit Agreement in Fiscal Year 2024. In connection with the voluntary principal prepayments, the Company paid a $2.6 million premium, amounting to 3% on the aggregate principal amount being prepaid, and $1.6 million towards interest, in accordance with the provisions of the Term Loan Credit Agreement. In connection with the voluntary principal prepayments discussed above, for Fiscal Year 2024, the Company recognized a loss on extinguishment of debt of approximately $8.6 million, consisting of $6.0 million of accelerated amortization of the discount and fees and $2.6 million of prepayment premium, in its consolidated statements of operations and comprehensive income. As of February 1, 2025, the remaining Term Loan Facility principal balance was $74.3 million, which is to be paid upon maturity on May 8, 2028. The remaining unamortized discount and fees of $4.9 million will continue to be amortized over the remaining term through maturity.

The Borrower’s obligations under the Term Loan Credit Agreement are guaranteed by the Company and J.Jill Gift Card Solutions, Inc., a Florida corporation wholly-owned by Jill Acquisition LLC (“Jill Gift Card Solutions” and collectively with the Company, the “Guarantors”), and are secured by substantially all of the real and personal property of the Borrower and the Guarantors, subject to certain customary exceptions. The Term Loan Credit Agreement includes customary negative covenants for term loan agreements of this type, including covenants limiting the ability of the Borrower and the Guarantors to, among other things, incur additional indebtedness, create liens on assets, make investments, loans or advances, engage in mergers, consolidations, sales of assets and purchases, pay dividends and distributions, enter into transactions with affiliates, and make payments in respect of junior indebtedness, in each case subject to customary exceptions for term loan agreements of this type. The Term Loan Credit Agreement also includes certain customary representations and warranties, affirmative covenants, certain financial covenants and events of default, including but not limited to, payment defaults, breaches of representations and warranties, covenant defaults, certain events under the Employee Retirement Income Security Act of 1974 (“ERISA”), certain final non-appealable judgments that are not covered by a reputable and solvent insurance company, certain defaults under other indebtedness, change of control and certain Title 11 proceedings.

As of February 1, 2025, the Company was in compliance with all covenants.

Priming and Subordinated Term Loans

The Company was party to a priming and a subordinated credit agreement, dated as of September 30, 2020, by and among J.Jill, Inc., Jill Acquisition LLC, as the borrower, the lenders party thereto from time to time and Wilmington Trust, National Association, as administrative agent and collateral agent (as amended, the “Subordinated Credit Agreement” and, such facility, the Subordinated Facility), until it was repaid in full on April 5, 2023.

Asset-Based Revolving Credit Agreement

On May 8, 2015, the Company entered into a five-year secured $40.0 million asset-based revolving credit facility agreement (the “ABL Facility”). The ABL Facility had an initial maturity of May 8, 2020. On June 12, 2019, this ABL Facility was amended to extend the termination date to May 8, 2023.

On April 15, 2022, the Company entered into an amendment to the ABL Facility, whereby (i) the maturity date of the ABL Facility was extended from May 8, 2023 to May 8, 2024, and (ii) changed the benchmark interest rate applicable to the loans under the ABL Facility from LIBOR to the forward-looking secured overnight financing rate (“Term SOFR”).

On May 10, 2023, the Company entered into Amendment No. 6 to the ABL Credit Agreement, by and among the Company, J.Jill Gift Card Solutions, the other guarantors party thereto the other lenders party thereto, and CIT Finance LLC, as the administrative agent and collateral agent. This amendment extended the maturity date of the ABL Credit Agreement from May 8, 2024 to May 10, 2028 (or 180 days prior to the maturity date of the Company’s Term Loan Credit Agreement if the maturity date of such Term Loan Facility has not been extended to a date that is at least 180 days after the maturity date of the ABL Credit Agreement). The other terms and conditions of the ABL Facility remain substantially unchanged. The benchmark interest rate applicable to the loans under the ABL Facility is the forward-looking secured overnight financing rate.

On December 1, 2023, the Company entered into Amendment No. 7 (the “ABL Amendment”) to the ABL Credit Agreement, by and among the Company, Jill Acquisition LLC, J.Jill Gift Card Solutions, Inc. (collectively, the “Borrowers”), the other guarantors party thereto, the other lenders party thereto, and CIT Finance LLC, as the administrative agent and collateral agent. The ABL Amendment made a technical revision for administrative purposes which removed the requirement for a Borrower’s non-negotiable bill of lading, non-negotiable sea waybill or other similar shipping document (each a “Non-Negotiable Document”) to state on its face that the inventory that is subject to such Non-Negotiable Document is subject to the lien of the administrative agent. In connection with removing this requirement, a $500,000 in-transit inventory reserve amount will be applied to eligible in-transit inventory on the borrowing base certificate during any period in which excess liability is less than $5.0 million. This increase in the reserve decreases the borrowing base by the same amount during an in- transit inventory reserve period.

The ABL Facility consists of revolving loans and swing line loans. Borrowings classified as revolving loans under the ABL Facility may be maintained as either Term SOFR or Base Rate loans, each of which has a variable interest rate plus an applicable margin. Borrowings classified as swing line loans under the ABL Facility are Base Rate loans. Term SOFR loans under the ABL Facility accrue interest at a rate equal to Term SOFR plus a spread ranging from 2.25% to 2.50%, depending on borrowing amounts. Base Rate loans under the ABL Facility accrue interest at a rate equal to (i) the greatest of (a) the financial institution’s prime rate, (b) the overnight Federal Funds Effective Rate plus 0.50%, (c) Adjusted Term SOFR (as adjusted by any Floor) plus 1.00% (ii) a spread ranging from 1.25% to 1.50%, depending on borrowing amounts.

Interest on each Term SOFR loan is payable on the last day of each interest period and no more than quarterly, and interest on each Base Rate loan is payable in arrears on the last business day of April, July, October and January. For both Term SOFR and Base Rate loans, interest is payable periodically upon repayment, conversion or maturity, with interest periods ranging between 30 to 180 days at the election of the Company, or 12 months with the consent of all lenders.

The ABL Facility also requires the quarterly payment, in arrears, of a commitment fee. The commitment fee is payable in an amount equal to (i) 0.375% for each calendar quarter during which historical excess availability is greater than 50% of availability, and (ii) 0.25% for each calendar quarter during which historical excess availability is less than or equal to 50% of availability.

The Company had no short-term borrowings under the Company’s ABL Facility as of February 1, 2025 and February 3, 2024. During the fiscal year ended February 1, 2025, no amount was drawn or outstanding under the ABL Facility. Based on the terms of the agreement and the increase for the letters of credit, the Company’s available borrowing capacity under the ABL Facility as of February 1, 2025 and February 3, 2024 was $35.7 million and $34.2 million, respectively.

The Company incurred an immaterial amount of interest expense related to the ABL facility for Fiscal Years 2024, 2023 and 2022, respectively.

The Company incurred an immaterial amount of ABL interest amortization being booked over maturity of the ABL for Fiscal Years 2024, 2023, and 2022.

Borrowings under the ABL Facility are secured by a first lien on accounts receivable and inventory. In connection with the ABL Facility, the Company is subject to various financial reporting (including with respect to liquidity), financial and other covenants. Affirmative covenants include providing timely quarterly and annual financial statements and prompt notification of the occurrence of

any event of default or any other event, change or circumstance that has had, or could reasonably be expected to have, a material adverse effect as defined in the ABL Facility. In addition, there are negative covenants, including certain restrictions on the Company’s ability to incur additional indebtedness, create liens, enter into transactions with affiliates, transfer assets, pay dividends, consolidate or merge with other entities, make advances, investments and loans or modify its organizational documents. The ABL Facility also includes certain financial maintenance covenants, including a requirement to maintain a fixed charge coverage ratio greater than or equal to 1.00:1.00 if availability under the ABL Facility is less than specified levels. As of February 1, 2025 and February 3, 2024, the Company was in compliance with all financial covenants in effect.

If an event of default occurs under the ABL Facility, the Company’s obligations may be accelerated. In addition, a 2.00% interest surcharge will be imposed on overdue amounts.

Letters of Credit

As of February 1, 2025 and February 3, 2024, there were outstanding letters of credit of $4.3 million and $5.8 million, respectively, which reduced the availability under the ABL Facility. As of February 1, 2025, the maximum commitment for letters of credit was $15.0 million. Letters of credit accrue interest at a rate equal to the applicable margin with respect to revolving loans maintained as Term SOFR loans under the ABL facility. The Company primarily used letters of credit to secure payment of workers’ compensation claims and customs bonds. Letters of credit are generally obtained for a one-year term and automatically renew annually and would only be drawn upon if the Company fails to comply with its contractual obligations.

Payments of Long-term Debt Obligations Due by Period

As of February 1, 2025, the minimum future principal amounts payable under the Company’s outstanding long-term debt consists of the remaining Term Loan Facility principal balance of $74.3 million due upon maturity on May 8, 2028.
v3.25.1
Fair Value Measurements
 12 Months Ended
Feb. 01, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

10. Fair Value Measurements

Certain assets and liabilities are carried at fair value in accordance with GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

Valuation techniques used to measure fair value requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

•
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 in active markets; quoted prices for similar assets or liabilities in markets that are not active; or other inputs other than quoted prices that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities, including interest rates and yield curves, and market corroborated inputs.
•
Level 3 - Unobservable inputs for the asset or liability that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These are valued based on management’s estimates and assumptions that market participants would use in pricing the asset or liability.

The following tables present the carrying value and fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of February 1, 2025 and February 3, 2024, respectively (in thousands):

 

 

 

 

 

 

Fair Value as of February 1, 2025

 

 

 

Carrying Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial instruments not carried at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

     Total debt

 

$

69,419

 

 

$

—

 

 

$

73,968

 

 

$

—

 

Total financial instruments not carried at fair value

 

$

69,419

 

 

$

—

 

 

$

73,968

 

 

$

—

 

 

 

 

 

 

 

Fair Value as of February 3, 2024

 

 

 

Carrying Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial instruments not carried at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

     Total debt

 

$

155,948

 

 

$

—

 

 

$

161,871

 

 

$

—

 

Total financial instruments not carried at fair value

 

$

155,948

 

 

$

—

 

 

$

161,871

 

 

$

—

 

 

The Company’s debt instruments include the Term Loan Credit Agreement. The debt instruments are recorded at cost, net of debt issuance costs and any related discount. The fair value of the debt instruments is obtained based on observable market prices quoted on public exchanges for similar instruments.

The Company believes that the carrying amounts of its other financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and any amounts drawn on its revolving credit facilities, consisting primarily of instruments without extended maturities, based on management’s estimates, approximates their fair value due to the short-term maturities of these instruments.

Assets and Liabilities with Recurring Fair Value Measurements - Certain assets and liabilities may be measured at fair value on an ongoing basis. We did not elect to apply the fair value option for recording financial assets and financial liabilities. Other than total debt and liability-classified stock options, we do not have any assets or liabilities which we measure at fair value on a recurring basis.

Assets and Liabilities with Nonrecurring Fair Value Measurements - Certain assets and liabilities are not measured at fair value on an ongoing basis. These assets and liabilities, which include long-lived assets, goodwill, and intangible assets, are subject to fair value adjustments as part of the related impairment tests. Assumptions used to measure these fair value adjustments are classified as Level 3 inputs. Other than impairment accounting adjustments, no adjustments to fair value or fair value measurements were required for non-financial assets and liabilities for all periods presented. See Note 6. Goodwill and Other Intangible Assets, for additional information.
v3.25.1
Commitments and Contingencies
 12 Months Ended
Feb. 01, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

11. Commitments and Contingencies

Legal Proceedings

The Company is subject to various legal proceedings that arise in the ordinary course of business. Although the outcome of such proceedings cannot be predicted with certainty, management does not believe that the Company is presently party to any legal proceedings the resolution of which management believes would have a material adverse effect on the Company’s financial statements. The Company establishes reserves for specific legal matters, including legal costs, when the Company determines that the likelihood of an unfavorable outcome is probable, and the loss is reasonably estimable.

Concentration Risk

An adverse change in the Company’s relationships with its key suppliers, or loss of the supply of one of the Company’s key products for any reason, could have a material effect on the business and results of operations of the Company. One supplier accounted for 11.0% of the Company’s purchases during Fiscal Year 2024. There are many potential suppliers in the industry that could become a supplier if we were to lose one of our large suppliers.

Other Commitments

The Company enters into other cancelable and noncancelable commitments. Typically, these commitments are for less than one year in duration and are principally for the procurement of inventory. Preliminary commitments with the Company’s merchandise vendors are made approximately six months in advance of the planned receipt date.
v3.25.1
Segment Reporting
 12 Months Ended
Feb. 01, 2025
Segment Reporting [Abstract]  
Segment Reporting

12. Segment Reporting

Adoption of ASU 2023-07

In Fiscal Year 2024, the Company adopted ASU 2023-07, “Improvements to Reportable Segment Disclosures.” This ASU enhances the segment reporting disclosures provided in the Company’s annual and interim consolidated financial statements.

Operating Segments

The Company operates through two operating segments, Retail and Direct, based on the criteria used by the Chief Operating Decision Maker (“CODM”) to monitor performance and allocate resources. For reporting purposes, these operating segments have been aggregated into a single reportable segment due to their similar economic characteristics and shared resources. The segment derives its revenues from the sale of apparel and accessory merchandise through the retail stores and website and catalog orders.

Performance Assessment and Resource Allocation

The Company’s CODM is the Chief Executive Officer. To assess the performance of the Company, the CODM primarily uses net income to analyze shopping behaviors and allocate resources effectively to enhance sales and margins. Net income is integral to the annual budgeting and forecasting process, with monthly reviews of variances from actuals against plan and forecast when making

decisions on marketing spend, capital investments, and personnel. The accounting policies of the segment are the same as those described in the summary of significant accounting policies.

An extract of the financial information that is regularly provided to the CODM for the Company’s single reportable segment is listed below:

 

For the Fiscal Year Ended

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

Net sales

$

610,857

 

 

$

608,043

 

 

$

618,528

 

Costs of goods sold (exclusive of depreciation and amortization)

 

181,001

 

 

 

177,261

 

 

 

193,218

 

Selling expenses

 

188,815

 

 

 

186,209

 

 

 

182,163

 

Marketing expenses

 

52,690

 

 

 

51,639

 

 

 

51,389

 

General and administrative expenses

 

82,090

 

 

 

80,696

 

 

 

82,319

 

Other segment items (a)

 

66,778

 

 

 

76,037

 

 

 

67,264

 

Net Income and total comprehensive income

$

39,483

 

 

$

36,201

 

 

$

42,175

 
(a)
Other segment items represent the Company's order management system upgrade, management incentives, impairments of long-lived assets, loss on extinguishment of debt, loss on debt refinancing, interest expense, interest income, income taxes, and depreciation and amortization.

Geographic Information

All of the Company’s identifiable assets are located in the United States, which is where the Company is domiciled. The Company has immaterial sales outside the United States. No customer represents more than 10% of total revenues for any period presented.
v3.25.1
Operating Leases
 12 Months Ended
Feb. 01, 2025
Leases [Abstract]  
Operating Leases

13. Operating Leases

As of February 1, 2025, the Company leases all of its retail stores, a distribution center, and office space. As of that same date, the Company did not have any financing leases and no operating leases contained any material residual value guarantees or material restrictive covenants. Certain of the Company’s retail operating leases include variable rental payments based on a percentage of retail sales over contractual levels.

Some retail leases include one or more options to renew, with renewal terms that can extend the lease term from one to fifteen years. The Company’s distribution center has renewal terms that can extend the lease term up to twenty years. The exercise of lease renewal options is at the Company’s sole discretion.

The Company maintained a tenant incentive liability of $0.2 million and $0.3 million as of February 1, 2025 and February 3, 2024, respectively, related to certain variable retail leases.

The components of lease expense were as follows (in thousands):

 

 

 

 

 

For the Fiscal Year Ended

 

Lease Cost

 

Classification

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

Operating lease cost

 

SG&A Expenses

 

$

39,866

 

 

$

39,102

 

 

$

38,713

 

Variable lease cost

 

SG&A Expenses

 

 

3,675

 

 

 

3,089

 

 

 

3,006

 

Total lease cost

 

 

 

$

43,541

 

 

$

42,191

 

 

$

41,719

 

For Fiscal Years 2024 and 2022, noncash impairment charges of $0.3 million and $0.6 million, respectively, were recorded. The impairment charges related primarily to a right-of-use asset which arose from the revised sublease assumptions relating to one floor of the corporate headquarters located in Quincy, Massachusetts that was vacated in July 2019. There were no impairments recorded in Fiscal Year 2023.

For Fiscal Years 2024, 2023, and 2022, Selling general and administrative expenses included common area maintenance expense of $12.2 million, $13.2 million and $13.1 million, respectively.

For Fiscal Years 2024, 2023, and 2022, the total cash paid for amounts included in the measurement of operating lease liabilities was $43.2 million, $45.1 million and $41.5 million, respectively.

The weighted average remaining lease term and weighted average discount rate for our operating leases are as follows:

 

Lease Term and Discount Rate

 

February 1, 2025

 

Weighted-average remaining lease term (in years)

 

 

 

Operating leases

 

 

5.0

 

Weighted-average discount rate

 

 

 

Operating leases

 

 

6.8

%

Maturities of lease liabilities as of February 1, 2025 were as follows (in thousands):

 

Fiscal Year

 

Operating Leases(1)

 

2025

 

$

38,538

 

2026

 

 

39,613

 

2027

 

 

27,928

 

2028

 

 

21,212

 

2029

 

 

15,139

 

Thereafter

 

 

24,394

 

Subtotal

 

 

166,824

 

Less: Imputed interest

 

 

27,424

 

Present value of lease liabilities

 

$

139,400

 
(1)
There were no operating leases with legally binding minimum lease payments for leases signed but for which the Company has not taken possession.
v3.25.1
Income Taxes
 12 Months Ended
Feb. 01, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

14. Income Taxes

The provision for income taxes for the Fiscal Years 2024, 2023, and 2022 consists of the following (in thousands):

 

 

 

For the Fiscal Year Ended

 

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

Current

 

 

 

 

 

 

 

 

 

U.S. Federal

 

$

12,668

 

 

$

9,148

 

 

$

14,562

 

State and local

 

 

3,408

 

 

 

3,108

 

 

 

2,582

 

Total current

 

 

16,076

 

 

 

12,256

 

 

 

17,144

 

Deferred tax (benefit) expense

 

 

 

 

 

 

 

 

 

U.S. Federal

 

 

(1,502

)

 

 

1,971

 

 

 

(985

)

State and local

 

 

(76

)

 

 

(1,063

)

 

 

340

 

Total deferred tax (benefit) expense

 

 

(1,578

)

 

 

908

 

 

 

(645

)

Total income tax provision

 

$

14,498

 

 

$

13,164

 

 

$

16,499

 

The effective tax rate for the fiscal year ended February 1, 2025 differs from the federal statutory rate of 21% primarily due to the impact of state and local income taxes and the impact of executive compensation limitations.

A reconciliation of the federal statutory income tax rate of 21% to the Company’s effective tax rate is as follows for the periods presented:

 

 

 

For the Fiscal Year Ended

 

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

Federal statutory income tax rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State income taxes, net of federal tax effect

 

 

4.9

%

 

 

6.0

%

 

 

6.1

%

Disallowed interest

 

 

—

 

 

 

1.8

%

 

 

—

 

Disallowed officer compensation

 

 

2.5

%

 

 

2.5

%

 

 

2.1

%

Valuation allowance

 

 

—

 

 

 

(2.7

)%

 

 

(2.2

)%

Equity-based compensation expense

 

 

(1.5

)%

 

 

(1.6

)%

 

 

(0.3

)%

Charitable contributions

 

 

(0.2

)%

 

 

(0.2

)%

 

 

(0.2

)%

Tax return to provision adjustments

 

 

—

 

 

 

0.1

%

 

 

1.5

%

Other

 

 

0.2

%

 

 

(0.2

)%

 

 

0.1

%

Effective tax rate

 

 

26.9

%

 

 

26.7

%

 

 

28.1

%

 

The components of deferred tax assets (liabilities) were as follows (in thousands):

 

 

 

 

 

 

 

February 1, 2025

 

 

February 3, 2024

 

Deferred tax assets

 

 

 

 

 

 

Accrued expenses

 

$

4,286

 

 

$

3,981

 

State net operating loss carryforward

 

 

320

 

 

 

1,367

 

Start-up costs

 

 

294

 

 

 

351

 

Original issue discount

 

 

1,741

 

 

 

—

 

Lease liabilities

 

 

35,346

 

 

 

35,643

 

Total deferred tax assets, gross

 

 

41,987

 

 

 

41,342

 

Deferred tax liabilities

 

 

 

 

 

 

Inventory

 

 

(750

)

 

 

(714

)

Lease assets

 

 

(28,893

)

 

 

(27,883

)

Fixed assets

 

 

(5,523

)

 

 

(6,394

)

Intangible assets

 

 

(15,628

)

 

 

(16,823

)

Prepaid expenses

 

 

(582

)

 

 

(495

)

Total deferred tax liabilities

 

 

(51,376

)

 

 

(52,309

)

Net deferred tax liabilities

 

$

(9,389

)

 

$

(10,967

)

Deferred tax assets and deferred tax liabilities are recognized based on temporary differences between the financial reporting and tax bases of assets and liabilities using statutory rates. The Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets on a quarterly basis. During the fiscal year ended February 3, 2024, the Company reassessed the valuation allowance noting the shift of positive evidence outweighing negative evidence, including continued strong historical profits since the fiscal year 2021 emergence from the COVID-19 pandemic and expectations regarding future profitability. After assessing both the positive evidence and negative evidence, management determined it was more likely than not that the Company will realize all of its deferred tax assets as of the fiscal year ended February 3, 2024.

As of February 1, 2025, the Company does not have a federal net operating loss carryforward. The Company has $0.3 million of state net operating loss carryforwards that would expire if unutilized by the tax year 2040. The Company does not have a federal business interest carryforward. The Company has a $0.1 million of state business interest carryforwards, available to offset future taxable income. This carryforward can be carried forward indefinitely for state tax purposes.

The following table summarizes the changes in the Company’s unrecognized income tax benefits for Fiscal Years 2024, 2023 and 2022 (in thousands):

 

 

 

For the Fiscal Year Ended

 

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

Balance at the beginning of the period

 

$

127

 

 

$

425

 

 

$

399

 

(Decreases) Increases for tax positions related to prior periods

 

 

—

 

 

 

(298

)

 

 

26

 

Balance at the end of the period

 

$

127

 

 

$

127

 

 

$

425

 

The Company had gross unrecognized tax benefits of $0.1 million, $0.1 million and $0.4 million as of February 1, 2025, February 3, 2024 and January 28, 2023, respectively, recorded in Other liabilities on the consolidated balance sheets. The Company will recognize interest and penalties, if any, related to uncertain tax positions in Income tax expense. As of February 1, 2025, no significant amount of penalties or interest have been accrued. We expect that the remaining unrecognized income tax benefits will be released in the next 12 months.

For federal and state income tax purposes, the Company’s tax years remain open under statute for Fiscal Year 2017 to present.
v3.25.1
Net Income (Loss) Per Share
 12 Months Ended
Feb. 01, 2025
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share

16. Net Income Per Share

The following table summarizes the computation of basic and diluted net income per common share for the Fiscal Years 2024, 2023 and 2022 (in thousands, except share and per share data):

 

 

 

For the Fiscal Year Ended

 

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

Numerator

 

 

 

 

 

 

 

 

 

Net income

 

$

39,483

 

 

$

36,201

 

 

$

42,175

 

Denominator

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

14,956,165

 

 

 

10,561,652

 

 

 

10,124,962

 

Assumed exercise of warrants

 

 

—

 

 

 

3,581,475

 

 

 

3,810,441

 

Weighted average common shares, basic

 

 

14,956,165

 

 

 

14,143,127

 

 

 

13,935,403

 

Dilutive effect of share-based awards

 

 

180,668

 

 

 

261,343

 

 

 

349,632

 

Weighted average common shares, diluted

 

 

15,136,833

 

 

 

14,404,470

 

 

 

14,285,035

 

Net income per common share, basic

 

$

2.64

 

 

$

2.56

 

 

 

3.03

 

Net income per common share, diluted

 

$

2.61

 

 

$

2.51

 

 

$

2.95

 

Share-based rewards are excluded from the diluted earnings per share calculation when their inclusion would have an antidilutive effect such as when the Company has a net loss for the reporting period, or if the assumed proceeds per share of the award is in excess of the related fiscal period’s average price of the Company’s common stock. Accordingly, there were 98,338, 57,914, and 106,137 such awards excluded for the Fiscal Years 2024, 2023 and 2022, respectively.

During the fiscal year ended February 1, 2025, the Company issued 3,572,664 shares of common stock following the exercise of 3,573,707 warrants (the “Warrants”) that were previously issued pursuant to a Warrant Agreement, dated as of October 2, 2020, by and between the Company and American Stock Transfer & Trust Company, LLC (the “Warrant Agreement”). The exercise price of the Warrants was net share settled as per the terms of the Warrant Agreement and as detailed in the consolidated statements of shareholders’ equity for the fiscal year ended February 1, 2025. Given the non-substantive exercise price of the Warrants in relation to the fair value of the common shares issued upon exercise, the exercise of these Warrants had no impact on net income per common share, both basic and diluted. Upon exercise, the net share settled warrants are included in the Weighted average number of common shares outstanding in the table above for the fiscal year ended February 1, 2025.
v3.25.1
Shareholders' Equity
 12 Months Ended
Feb. 01, 2025
Equity [Abstract]  
Shareholders' Equity

15. Shareholders’ Equity

Common Stock Issuance

On June 12, 2024, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Jefferies LLC, William Blair & Company, L.L.C., and TD Securities (USA) LLC (collectively, the “Underwriters”), as well as TowerBrook Capital Partners, LP (“TowerBrook”), an affiliate and the Company’s largest stockholder (the “Selling Stockholder”). Pursuant to the Underwriting Agreement, (i) the Company offered, issued, and sold 1,000,000 shares of its common stock and, (ii) the Selling Stockholder offered and sold 1,300,000 shares of the Company’s common stock, which included 300,000 shares sold as a result of the Underwriters’ full exercise of their option to purchase additional shares (collectively, the “Equity Offering”). The shares were offered at an offering price of $31.00 per share, less underwriting discounts and commissions. The Equity Offering was completed on June 14, 2024.

The gross proceeds to the Company from the issuance of the Company’s 1,000,000 shares amounted to $31.0 million and the Company did not receive any proceeds from the shares sold by the Selling Stockholder. After deducting underwriting discounts and commissions of approximately $1.5 million, the net proceeds to the Company from the Equity Offering were $29.5 million. The issuance of the 1,000,000 new shares sold by the Company increased the total number of outstanding shares and are reflected in the stockholders’ equity section of the Company’s consolidated balance sheet as of February 1, 2025. In connection with the Equity Offering, the Company incurred $0.8 million of third-party expenses. The net proceeds, after deducting both underwriting discounts and commissions and third- party expenses have been recorded in Additional paid-in capital and are detailed in the consolidated statements of shareholders’ equity for the fiscal year ended February 1, 2025.

The Company utilized the net proceeds from its sale of shares in the Equity Offering for repayment of its debt and general corporate purposes.

Share Repurchase Program

On December 6, 2024, the Board approved a share repurchase program (the “Share Repurchase Program”), under which the Company is authorized to repurchase up to $25.0 million of the Company’s common stock over the next two years. Under the Share Repurchase Program, shares of the Company’s common stock may be purchased from time to time through open market or private transactions, block trades, or such other manner as the Company may determine, in accordance with applicable insider trading and other securities laws and regulations under the Exchange Act and share repurchase parameters determined by the Board.

During the year ended February 1, 2025, the Company repurchased 19,831 shares of its Common Stock for an aggregate purchase price of $0.5 million. As of February 1, 2025, the Company had $24.5 million of availability remaining under its stock repurchase authorization. The purchase price of these share repurchases, and the related fees, have been classified as Treasury stock in the accompanying consolidated balance sheet as of February 1, 2025. There were no shares repurchased by the Company during the fiscal year ended February 3, 2024.

The timing and the number of shares repurchased are subject to the discretion of the Company and may be affected by market conditions and other factors. The Share Repurchase Program does not obligate the Company to acquire any particular amount of common stock and may be modified, suspended or terminated at any time.

Dividends

During Fiscal Year 2024, the Board of Directors (the “Board”) declared total cash dividend payments of $0.21 per share of common stock (the “Dividend”). During Fiscal Year 2024, the Company paid $2.9 million in cash dividends and $0.1 million in dividend equivalent units relating to employee share-based payment awards. While dividends are generally recorded as a reduction to Retained earnings, since the Company has an accumulated deficit, dividends are recorded as a reduction to Additional paid-in capital.

The Company intends to pay cash dividends quarterly in the future, subject to market conditions and at the discretion of the Board. Our ability to pay dividends in the future is based on a number of factors, such as earnings levels, capital requirements, restrictions imposed by applicable law, our overall financial condition, restrictions in our debt agreements and the ability of our operating subsidiaries to pay dividends to us as a holding company.
v3.25.1
Share-Based Payment
 12 Months Ended
Feb. 01, 2025
Share-Based Payment Arrangement [Abstract]  
Share-Based Payment

17. Share-Based Payment

In conjunction with the initial public offering, on March 9, 2017, the Company established the J.Jill, Inc. Omnibus Equity Incentive Plan, as amended and restated on June 1, 2023 (the “A&R Plan”), which reserves common stock for issuance upon exercise of options, or in respect of granted awards. The A&R Plan is administered by the Compensation Committee of the Board of Directors (the “Committee”). The Board has the authority to determine the type, size and terms and conditions of awards to be granted and to grant such awards.

On June 29, 2023, the Company registered an additional 750,000 shares of its common stock at par value of $0.01 per share. The A&R Plan reserves a maximum of 2,043,453 shares of common stock for issuance upon exercise of options, or in respect of granted awards. As of February 1, 2025, the A&R Plan had an aggregate of 706,888 shares remaining for future issuance pursuant to awards that may be granted by the Board.

During Fiscal Year 2024, the Board approved and granted restricted stock units (“RSUs”), dividend equivalent RSUs, performance-based restricted stock units (“PSUs”), and dividend equivalent PSUs under the A&R Plan.

Share-based compensation expense for all award types of $6.9 million, $3.8 million, and $3.5 million was recorded in the Selling, general and administrative expenses in the consolidated statement of operations and comprehensive income for Fiscal Years 2024, 2023 and 2022, respectively.

Liability-Classified Stock Options

On December 9, 2024, the Board awarded 100,000 stock options to Elm Street under the 2024 Elm Street Award. The 2024 Elm Street Award vests every two months in three equal installments as Elm Street provides its services over the six-month term and upon Elm Street successfully completing certain performance milestones. The 2024 Elm Street Award expires three years from the date of grant if unexercised. As of February 1, 2025, all 100,000 stock options were outstanding and unvested.

For the 2024 Elm Street Award, no grant date has been established on the stock option award date under Accounting Standards Codification (ASC) 718, Compensation - Stock Compensation, due to the Board retaining sole discretion over the determination of milestone achievement and vesting of each installment of the stock option awards, as provided in the agreement. As a result, the Company applied variable accounting and is recognizing stock-based compensation expense over requisite service period with liability classification, which the Company remeasures at each reporting date and includes in Accrued expenses and other current liabilities until such grant date is achieved. For Fiscal Year 2024, the Company recorded compensation expense of $0.4 million related to the 2024 Elm Street Award in Selling, general and administrative expenses. Refer to Note 19. Subsequent Events for additional details.

The fair value of the performance-based stock options as of February 1, 2025 was estimated using the Black-Scholes option-pricing model with the following assumptions:

 

Black Scholes Options Pricing Model

 

Risk Free Interest Rate

4.20%

Expected Dividend Yield

1.0%

Expected Volatility

46.0-46.8%

Expected Term

1.44-1.61

As of February 1, 2025, the outstanding stock options have a weighted average fair value of $6.84, weighted average exercise price of $26.63 and a weighted average remaining contractual term of 2.9 years.

Restricted Stock Units

For Fiscal Years 2024, 2023 and 2022, the Board granted RSUs under the A&R Plan, which vest in one to three equal annual installments, beginning one year from the date of grant. Additionally, during Fiscal Year 2024, in order to reward, retain, and further incentivize key personnel, the Board granted RSUs, fifty percent (50%) of which vests beginning one year from the date of grant, and the remaining fifty percent (50%) of which vests in equal amounts (i.e. 12.5% of the total RSU grant) on the last day of each quarter, with the first such quarter beginning January 1, 2026 and ending on March 31, 2026.

The grant-date fair value of RSUs is recognized as expense on a straight-line basis over the requisite service period, which is generally the vesting period. In connection with the cash dividend paid on the Company’s common stock and in accordance with the terms of the A&R Plan, participants holding RSUs were credited with dividend equivalent RSUs, which are subject to the same vesting terms as the RSUs. The fair market value of RSUs was determined based on the market price of the Company’s shares on the date of the grant.

The following table summarizes the RSUs award activity, for Fiscal Year 2024:

 

Number of RSUs

 

Weighted Average Grant Date Fair Value

 

Unvested units outstanding at February 3, 2024

 

458,299

 

$

14.15

 

Granted

 

272,683

 

$

31.88

 

Vested

 

(240,185

)

$

13.63

 

Forfeited

 

(10,909

)

$

32.55

 

Unvested units outstanding at February 1, 2025

 

479,888

 

$

23.66

 

 

As of February 1, 2025, there was $6.9 million of total unrecognized compensation expense related to unvested RSUs, which is expected to be recognized over a weighted-average service period of 1.7 years. The total fair value of RSUs vested during Fiscal Years 2024, 2023, and 2022 was $3.3 million, $3.6 million, and $3.0 million, respectively.

Performance Stock Units

For Fiscal Years 2024 and 2023, the Company granted PSUs, a portion of which are based on achieving an Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) goal and the remaining portion is based on achieving an annualized absolute total shareholder return (“TSR”) growth goal.

Each PSU award reflects a target number of shares (“Target Shares”) that may be issued to the award recipient provided the employee continues to provide services to the Company throughout the three year performance period of the award. For Adjusted EBITDA based PSUs, the number of units earned will be determined based on the achievement of the predetermined Adjusted EBITDA goals at the end of each performance year, and for TSR based PSUs, the number of units earned will be determined based on the achievement of the predetermined TSR growth goal at the end of the performance period. The TSR is based on J.Jill’s 30-trading day average beginning and closing price of the three-year performance period, assuming the reinvestment of dividends. Depending on the performance results based on Adjusted EBITDA and TSR, the actual number of shares that a grant recipient receives at the end of the vesting period may range from 0% to 200% of the Target Shares granted. PSUs are converted into shares of common stock upon vesting, under the terms of the A&R Plan. In connection with the cash dividend paid on the Company’s common stock and in accordance with the terms of the A&R Plan, participants holding PSUs were credited with dividend equivalent PSUs, a portion of which are based on an Adjusted EBITDA goal and the remaining portion is based on achieving an annualized TSR growth goal, each subject to the same vesting terms as the corresponding PSUs.

The fair value of the PSUs for which the performance is based on an Adjusted EBITDA goal was determined based on the market price of the Company’s shares on the date of the grant. Additionally, for those awards whose performance is based on a TSR growth goal, the fair value was estimated on the grant date using a Monte Carlo simulation as of the grant date. This valuation was performed prior to any declaration of cash dividends and the issuance of dividend equivalent PSUs. Except for the dividend equivalent PSUs, no additional PSUs were granted following this fair valuation, which is based on the assumptions noted below:

 

Monte Carlo Simulation Assumptions

For the Fiscal Year Ended

 

February 1, 2025

Risk Free Interest Rate

4.20%

Expected Dividend Yield

1.0%

Expected Volatility

47.1%-47.9%

Expected Term

1.58-1.74

 

The Company recognizes share-based compensation expense related to Adjusted EBITDA based PSUs based on the Company’s estimate of the percentage of the award that will be achieved. The Company evaluates the estimate of these awards on a quarterly basis and adjusts equity-based compensation expense related to these awards, as appropriate. For the TSR based PSUs, the equity-based compensation expense is recognized on a straight-line basis over the three-year performance period based on the grant-date fair value of these PSUs.

The following table summarizes the PSU awards activity for Fiscal Year 2024:

 

Number of PSUs

 

Weighted Average Grant Date Fair Value

 

Unvested units outstanding at February 3, 2024

 

62,709

 

$

30.47

 

Granted

 

105,034

 

$

40.21

 

Unvested units outstanding at February 1, 2025

 

167,743

 

$

36.56

 

As of February 1, 2025, there was $4.3 million of total unrecognized compensation expense related to unvested PSUs, which is expected to be recognized over a weighted-average service period of 1.7 years.

Equity-classified Options

During Fiscal Years 2018 and 2017, the Committee granted stock options under the A&R Plan. Stock options are granted to purchase ordinary shares at prices as determined by the Board, but in no event shall the exercise price be less than the fair market value of the common stock at the time of grant. Options generally vest in equal installments over a four-year period. Options expire not more than 10 years from the date of grant. The grant date fair value of options is recognized as an expense on a straight-line basis over the requisite service period, which is generally the vesting period. Forfeitures are recorded as incurred.

As of February 1, 2025, there was no unrecognized compensation cost related to stock options as all options were fully vested. During Fiscal Year 2024, the Company forfeited 10,909 stock options. The Company did not grant or exercise any stock options during Fiscal Year 2024. As of February 1, 2025, the outstanding and exercisable stock options have a weighted average grant date fair value of $30.17, weighted average exercise price of $59.85 and a weighted average remaining contractual term of 2.3 years.

Employee Stock Purchase Plan (the “Purchase Plan”)

The Company established the Purchase Plan during Fiscal Year 2017, under which a maximum of 40,000 shares of common stock may be purchased by eligible employees as defined by the Purchase Plan. As of February 1, 2025, February 3, 2024 and January 28, 2023, there were 2,344 shares authorized and available for future issuance under the Purchase Plan. As of February 1, 2025, the Purchase Plan remains suspended due to an inadequate number of authorized and available shares.
v3.25.1
Related Party Transactions
 12 Months Ended
Feb. 01, 2025
Related Party Transactions [Abstract]  
Related Party Transactions . Related Party Transactions

On June 14, 2024, the Company, and TowerBrook, as the Selling Stockholder, completed the Equity Offering, which resulted in the dilution of TowerBrook’s ownership and voting power in the Company. As a result, TowerBrook no longer controls a majority of the voting power of the Company’s outstanding voting stock and, therefore, the Company no longer qualifies as a “controlled company” within the meaning of the New York Stock Exchange corporate governance standards. Despite this change, TowerBrook remains an affiliated entity of the Company.

On December 9, 2024, the Company entered into a Consulting Agreement with Elm St Advisors, LLC (“Elm Street”). Elm Street is owned by Jim Scully, who served as a director on the Company’s Board until June 2024. Pursuant to the terms of the Consulting Agreement, Elm Street will assist the Company in developing enhanced operational strategies with a focus on growth opportunities. Total consideration for the services consists of cash of $2 million and up to 100,000 performance-based stock options to purchase the Company’s Common Stock, subject to vesting during the term of the Consulting Agreement upon the achievement of certain specified milestones. Refer to Note 17. Share-Based Payment for additional information on the stock options awarded to Elm Street.

During Fiscal Year 2024 the Company paid Elm Street a one time non-refundable upfront fee of $0.2 million in December 2024, which was recorded to Prepaid expenses and other current assets on the consolidated balance sheet and is being amortized over the term of the Consulting Agreement, which terminates on June 9, 2025. Additionally, as of February 1, 2025, the Company paid a monthly installment payment of $0.3 million as per the terms of the Consulting Agreement. Refer to Note 19. Subsequent Events for additional details.

The Company was party to the Subordinated Credit Agreement, with a group of lenders that includes certain affiliates of TowerBrook and the Chairman of our Board, until it was repaid in full on April 5, 2023. Refer to Note 9. Debt for additional information on repayment of the Subordinated Facility.

In the consolidated statements of operations and comprehensive income, in association with the Subordinated Facility, the Company incurred $1.1 million and $4.1 million of Interest expense – related party during Fiscal Years 2023 and 2022, respectively. The Company did not incur Interest expense – related party during Fiscal Year 2024.

For Fiscal Year 2024, the Company incurred $0.1 million in third-party expenses, primarily related to the payment of legal and professional fees associated with TowerBrook’s sale of the Company’s common stock in connection with the Equity Offering. During the Fiscal Years 2024, 2023 and 2022, the Company incurred an immaterial amount of other related party transactions.
v3.25.1
Subsequent Events
 12 Months Ended
Feb. 01, 2025
Subsequent Events [Abstract]  
Subsequent Events

19. Subsequent Events

On February 27, 2025, the Company announced the appointment of Mary Ellen Coyne as Chief Executive Officer ("CEO") and President, effective May 1, 2025. In addition to her role as CEO and President, Coyne will join the Board of Directors. CEO Claire Spofford, who announced her retirement in December, will step down on April 30, 2025.

On March 11, 2025, the Board declared a cash dividend of $0.08 per share, payable on April 16, 2025 to stockholders of record of issued and outstanding shares of the Company’s common stock as of April 2, 2025.

On March 11, 2025, the Company entered into Amendment No. 1 (“Amendment”) to the Consulting Agreement with Elm St Advisors, LLC (“Elm Street”). The Amendment extended the term of the agreement from June 2025 to November 2025 and changed the consideration to be paid for the services. The total cash consideration remains unchanged; however, the payment period was extended to the end of the new term. In addition, the number of stock options awarded was reduced from 100,000 to 33,334. All other terms and conditions remain in effect.
v3.25.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Feb. 01, 2025
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

The Company’s fiscal year ends on the Saturday, in January or February, nearest the last day of January, resulting in an additional week of results every five or six years. Fiscal Years 2024 and 2022 contained 52-weeks of operations whereas the Fiscal Year 2023 contained 53-weeks of operations.
Financial Statement Presentation

Financial Statement Presentation

Certain reclassifications have been made to prior periods to conform with the current period presentation.

On the consolidated statements of operations and comprehensive income, the Company reclassified amounts for interest income for fiscal years ended February 3, 2024 and January 28, 2023 from Interest expense, net to a separate financial statement line item to conform with the current presentation for the fiscal year ended February 1, 2025.

On the consolidated statement of cash flows, the Company reclassified approximately $2.5 million of prepaid software project costs from Prepaid expenses and other current assets to Other assets for the Fiscal Year ended February 3, 2024. For further details refer to the “Cloud-Based Software Arrangements” section below. In addition, the Company presented restricted cash of $0.4 million for fiscal years ended February 3, 2024 and January 28, 2023 as a separate item in the consolidated statement of cash flows to conform with the current presentation for the fiscal year ended February 1, 2025.
Correction of Immaterial Error

Correction of Immaterial Error

Prior to Fiscal Year 2024, the Company had recorded processing fee income related to customer sales returns as a contra expense within Selling, general and administrative expenses rather than as a component of Net sales in the consolidated statements of operations and comprehensive income. Beginning in Fiscal Year 2024, the Company recorded this revenue as a component of Net sales within the Direct channel. The Company reclassified this income, which increased previously reported Net sales and Selling, general and administrative expenses by approximately $3.4 million and $3.3 million for Fiscal Years ended February 3, 2024 and January 28, 2023, respectively. The Company has concluded that the reclassification of this income was immaterial to the prior period financial statements.
Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and judgments that affect reported amounts of assets, liabilities, shareholders’ equity, net sales and expenses, and the disclosure of contingent assets and liabilities. Significant estimates relied upon in preparing these consolidated financial statements include, but are not limited to, revenue recognition, including accounting for outstanding gift cards that will ultimately not be redeemed (“gift card breakage”) and estimated merchandise returns; estimating self-insurance reserves; estimating the value of inventory; impairment assessments for goodwill and other indefinite-lived intangible assets, and long-lived assets; discount rates used in the measurement of right-of-use assets and operating lease liabilities; and estimating equity-based compensation expense. Actual results could differ from those estimates, and such differences could be material.
Principles of Consolidation

Principles of Consolidation

The accompanying consolidated financial statements include the assets, liabilities and results of operations of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements.
Supplemental Cash Flow Information

Supplemental Cash Flow Information

The following table shows supplemental cash flow information (in thousands):

 

 

 

For the Fiscal Year Ended

 

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

Cash paid for interest, net of capitalized interest

 

$

15,426

 

 

$

25,948

 

 

$

11,722

 

Cash paid for taxes

 

 

15,563

 

 

 

13,355

 

 

 

19,686

 

Cash received for income tax refunds

 

 

148

 

 

 

35

 

 

 

10,257

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

 

12,473

 

 

 

2,061

 

 

 

1,789

 

Noncash investing and financing activities:

 

 

 

 

 

 

 

 

 

Capital expenditures financed with the ending balance in accounts payable and accrued expenses

 

 

381

 

 

 

318

 

 

 

386

 
Segment Reporting

Segment Reporting

The Company determined its operating segments on the same basis that it assesses performance and makes operating decisions. The Company’s operating segments consist of its Retail and Direct channels, which have been aggregated into one reportable segment.

All of the Company’s identifiable assets are located in the United States, which is where the Company is domiciled. The Company has immaterial sales outside the United States. No customer represents more than 10% of total revenues for any period presented.

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting, Improvements to Reportable Segment Disclosures”. For the Fiscal Year ended February 3, 2025, the Company adopted ASU 2023-07, refer to Note 3. Accounting Standards and Note 12. Segment Reporting for additional details.
Cash and cash equivalents and Restricted Cash

Cash and cash equivalents

Cash and cash equivalents include cash on hand, demand deposits and all highly liquid investments with original maturities at the time of purchase of three months or less. Certain cash account balances exceed FDIC insured limits of $250,000 per account and, as a result, there is a concentration of credit risk related to amounts in excess of insurance limits. We monitor the financial stability of these financial institutions and believe that we are not exposed to any significant credit risk in cash.

Restricted Cash

The Company's restricted cash balance represents an imprest cash account used for the funding of employee healthcare costs. The balance of restricted cash as of February 1, 2025, February 3, 2024 and January 28, 2023 was $0.4 million, which is included in Prepaid expenses and other current assets on the consolidated balance sheets.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statement of cash flows:

 

 

 

For the Fiscal Year Ended

 

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

 Cash and cash equivalents

 

$

35,427

 

 

$

62,172

 

 

$

87,053

 

 Restricted cash reported in other current assets

 

 

363

 

 

 

368

 

 

 

368

 

 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows

 

$

35,790

 

 

$

62,540

 

 

$

87,421

 
Accounts Receivable

Accounts Receivable

The beginning balances at January 28, 2023 for accounts receivable arising from contracts with customers was $7.0 million with ending balances included in "Receivables, net" in the Consolidated Balance Sheets.

The Company’s accounts receivable relates primarily to payments due from banks for credit and debit card transactions for approximately 2 to 5 days of sales. These receivables do not bear interest. The Company occasionally sells inventory to liquidators, and if these sales occur near the end of a reporting period, they are also included in accounts receivable.
Inventories

Inventories

Inventory consists of finished goods held for sale. Inventory is stated at the lower of cost or net realizable value. Cost is calculated using the weighted average method of accounting, and includes the cost to purchase merchandise from the Company’s manufacturers plus duties, tariffs, inbound freight and commissions. The net realizable value of the Company’s inventory is estimated based on historical experience, current and forecasted demand, and market conditions. The allowance for excess and obsolete inventory requires management to make assumptions and to apply judgment regarding a number of factors, including estimates applying past and projected sales performance to current inventory levels. As of February 1, 2025 and February 3, 2024, an inventory reserve of $1.1 million and $0.8 million has been recorded, respectively. The Company sells excess inventory in its stores, on-line at www.jjill.com and occasionally to inventory liquidators.

Inventory from domestic suppliers is recorded when it is received at the distribution center. Inventory from foreign suppliers is recorded when goods are cleared for export on board the ship at the port of shipment.
Property and Equipment

Property and Equipment

Property and equipment purchases are recorded at cost. Property and equipment is presented net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized over the shorter of the term of the related lease or the estimated useful lives of the improvements. The Company capitalizes as property and equipment certain qualified costs incurred in connection with the development of internal-use software. Capitalization of internal-use software begins during the application development stage and ends when the software is available for its intended use. Capitalized internal-use software is amortized on a straight-line basis over the estimated useful life of the software. Expenditures for repairs and maintenance are charged to expense as incurred. Expenditures for betterments and major improvements that significantly enhance the value and increase the estimated useful life of the asset are capitalized and depreciated over the new estimated useful life. The carrying amounts of assets sold or retired and the related accumulated depreciation are eliminated in the year of disposal, and any resulting gains or losses are included in the consolidated statements of operations and comprehensive income. See Note 7. Property and Equipment for additional information.

Estimated useful lives of property and equipment asset categories are as follows:

 

Furniture, fixtures and equipment

5-7 years

Computer software and hardware

3-7 years

Leasehold improvements

Shorter of estimated useful life or lease term
Capitalized Interest

Capitalized Interest

The cost of interest that is incurred in connection with long-term leasehold improvements and software related projects is capitalized using a weighted average interest rate. These costs are included in property and equipment and amortized over the useful life of the related property or equipment.
Long-lived Assets

Long-lived Assets

The carrying value of long-lived assets, including amortizable identifiable intangible assets, and asset groups are evaluated whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant decrease in the market price of an asset, a significant adverse change in the extent or manner in which an asset is being used or a significant decrease in its physical condition, and operating performance that demonstrates continuing cash flow losses associated with an asset or asset group. A potential impairment has occurred if the projected future undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group are less than the carrying value of the asset or asset group. The estimate of cash flows includes management’s assumptions of cash inflows and outflows directly resulting from the use of the asset in operation. If the carrying value exceeds the sum of the undiscounted cash flows, an impairment charge is recorded equal to the excess of the asset or asset group’s carrying value over its fair value. Fair value is measured based on a projected discounted cash flow model using a discount rate the Company believes is commensurate with the market participant rate. Any impairment charge would be recognized within operating expenses.
Goodwill and Indefinite-lived Intangible Assets

Goodwill and Indefinite-lived Intangible Assets

Goodwill represents the excess of the purchase price over the fair values of the assets acquired and liabilities assumed in conjunction with an acquisition. Goodwill and indefinite-lived intangible assets are not amortized but are reviewed for impairment at least annually or more frequently between annual tests when events or changes in circumstances indicate that the carrying value may not be recoverable.

In Fiscal Year 2024, we continue to evaluate goodwill for impairment on an annual basis, using the last day of our eleventh fiscal month as the test date, rather than the end of our fiscal year. This change in the impairment test date, implemented in Fiscal Year 2023, reduces resource constraints related to the Company’s year-end close and financial reporting process and provides additional time for completing impairment testing. It also aligns with the Company’s long-range planning and forecasting processes. This change does not represent a material change to the Company’s method of applying an accounting principle, and therefore does not delay, accelerate, or avoid an impairment charge. Judgments regarding indicators of potential impairment are based on market conditions and operational performance of the business.

The Company’s policy is to perform a quantitative analysis every three years. During those years when a quantitative assessment is not performed initially, the Company may assess these assets for impairment using a qualitative approach to determine whether conditions exist to indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying value. If management concludes, based on its assessment of relevant events, facts and circumstances, that it is more likely than not that an impairment exists, then a quantitative analysis is performed to determine if there is any impairment.

See Note 6. Goodwill and Other Intangible Assets for additional information.
Self-Insured Group Health Insurance

Self-Insured Group Health Insurance

The Company transitioned to a self-insured group health insurance program with certain stop-loss limits. Such costs are accrued based on known claims and estimates of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates. The accrued liability for self-insurance is included in Accrued expenses and other current liabilities on the consolidated balance sheets.
Revenue Recognition

Revenue Recognition

Revenue is primarily derived from the sale of apparel and accessory merchandise through our retail stores and through our website and catalog orders. The Company recognizes revenue when its single performance obligation is met at the time when the control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. Revenue from our Retail channel is recognized at the time of sale and revenue from our Direct channel is recognized upon shipment of merchandise to the customer.

The Company has a return policy where merchandise returns will be accepted within 90 days of the original purchase date. At the time of sale, the Company records a reserve for merchandise returns, which are estimated using the expected value method based on historical prior returns experience and expected future returns. The estimated sales reserve is recorded as a return asset (and corresponding adjustment to cost of goods sold) for the cost of inventory and a return liability for the amount to settle the return with a customer (and a corresponding adjustment to revenue). The return asset and return liability are recorded in Prepaid expenses and other current assets, and Accrued expenses and other current liabilities, respectively, in the consolidated balance sheets. The Company collects and remits sales and use taxes in all states in which Retail and Direct sales occur and taxes are applicable. These taxes are reported on a net basis and are thereby excluded from revenue.

The Company sells gift cards without expiration dates to customers. The Company does not charge administrative fees on unused gift cards. Proceeds from the sale of gift cards are recorded as a contract liability until the customer redeems the gift card or when the likelihood of redemption is remote. Based on historical experience, the Company estimates the value of gift card breakage and will not be escheated under statutory state unclaimed property laws. This gift card breakage is recognized as revenue over the time period established by the Company’s historical gift card redemption pattern.

The Company recognizes revenues from shipments to customers when the shipping and handling activities occur and will accrue those related costs. Shipping and handling costs are recorded in Selling, general and administrative expenses.
Costs of Goods Sold

Costs of Goods Sold

The Company’s costs of goods sold includes the direct costs of sold merchandise, which include customs, taxes, duties, commissions and inbound shipping costs, inventory shrinkage, and adjustments and reserves for excess, aged and obsolete inventory. Costs of goods sold does not include distribution center costs and allocations of indirect costs, such as occupancy, depreciation, amortization, or labor and benefits.
Selling, General and Administrative Expenses

Selling, General and Administrative Expenses

Selling, general and administrative expenses consist primarily of payroll and related expenses, occupancy costs, information systems costs and other operating expenses related to our stores and to our operations at our headquarters, including utilities, depreciation and amortization. These expenses also include marketing expense, including catalog production and mailing costs, warehousing, distribution and outbound shipping costs, customer service operations, consulting and software services, natural disaster related costs, professional services and other administrative costs.

Outbound shipping costs to customers recorded in Selling, general and administrative expenses were $21.4 million, $20.2 million, and $20.4 million for the Fiscal Years 2024, 2023 and 2022, respectively.
Loss Contingencies

Loss Contingencies

The Company accrues for legal costs when it is both probable that a loss will be incurred, and the amount of the loss is reasonably estimable. The Company evaluates pending litigation and other contingencies at least quarterly and adjusts the accrual for such contingencies for changes in probable and reasonably estimable losses. The Company includes an estimate for related legal costs in the Selling, general and administrative expenses line item in the consolidated statements of operations and comprehensive income at the time such costs are both probable and reasonably estimable.
Advertising Costs

Advertising Costs

The Company incurs costs to produce, print, and distribute its catalogs. Catalog costs are recorded to Prepaid and other current assets in the consolidated balance sheets when paid, and expensed when the catalog is mailed to the customer (the first time the advertising occurs). Catalog advertising expenses were $18.0 million, $17.0 million, and $16.8 million for the Fiscal Years 2024, 2023 and 2022, respectively. The costs are included in Selling, general and administrative expenses in the consolidated statements of operations and comprehensive income.

Other advertising costs are recorded as incurred. Other advertising costs recorded were $21.4 million, $21.0 million, and $22.0 million for the Fiscal Years 2024, 2023 and 2022, respectively. The costs are included in Selling, general and administrative expenses in the consolidated statements of operations and comprehensive income.
Operating Leases

Operating Leases

The Company determines if an arrangement is a lease at inception. Lease agreements will typically exist with lease and non-lease components, which are generally accounted for separately. The Company has elected not to recognize right-of-use assets or lease obligations for leases with an initial term of twelve months or less.

The Company recognizes operating lease liabilities equal to the present value of the lease payments and operating lease assets representing the right to use the underlying asset for the lease term. The lease expense for lease payments is recognized on a straight-line basis over the lease term.

As the Company’s leases do not provide an implicit rate, the Company uses an Incremental Borrowing Rate (“IBR”) based on the information available at lease commencement in determining the present value of lease payments. The IBR is estimated using a secured borrowing approach, which considers the Company’s credit rating based on a combination of public ratings, synthetic credit rating models, and secured borrowing activities. In determining the IBR, the Company also considers the economic environment at lease commencement, including prevailing market interest rates and adjustments for the Company’s credit profile. The operating lease assets include any lease payments made prior to lease commencement and are reduced by any lease incentives.

Under lease accounting guidance, for any new leases entered into, the Company assesses if it is reasonably certain to exercise lease options to extend or terminate the lease for inclusion (or exclusion) in the lease term when the Company measures the lease liability. The depreciable life of any assets and leasehold improvements are limited by the expected lease term.

For certain lease agreements, the Company allocates the consideration in the agreement to separate lease components by determining the relative standalone price of separate lease and non-lease components. Certain of the Company’s retail operating leases include variable rental payments based on a percentage of retail sales over contractual levels. Variable rental payments are recognized in the consolidated statements of operations and comprehensive income in the period in which the obligation for those payments is incurred. If such variable operating leases arise that include incentives from landlords in the form of cash, the Company will record the full amount of the incentive when specific performance criteria are met as a deferred liability. The deferred liability is amortized into income as a reduction of rent expense over the term of the applicable lease, including options to extend if they are reasonably certain to be exercised. The Company recognizes those liabilities to be amortized within one year as current liability and those greater than one year as long-term liability. For purposes of recognizing these incentives and rental expenses on a straight-line basis, the Company uses the date it obtains the legal right to use and control the lease asset to begin amortization, which is generally when the Company takes possession of the asset.
Cloud-Based Software Arrangements

Cloud-Based Software Arrangements

Certain costs incurred to implement software development on cloud computing arrangements hosted by third party vendors are capitalized when incurred during the application development phase and recognized as Prepaid expenses and other current assets for the current portion and as Other assets for the long-term portion. Implementation costs are subsequently amortized on a straight-line basis over the expected term of the related cloud service, beginning on the date the related software or module is ready for its intended use. The amortization of cloud-based software implementation costs is recorded as a component of Selling, general, and administrative expenses, the same line item as the expense for the associated hosting arrangement. The carrying value of cloud computing implementation costs are tested for impairment when an event or circumstance indicates that the asset might be impaired. Cloud computing arrangement implementation costs are classified within operating activities in the consolidated statements of cash flows.

For the Fiscal Years ended February 1, 2025 and February 3, 2024, the Company amortized $0.9 million and $0.6 million, respectively, of cloud-based software implementation costs.

As of February 1, 2025, the Company had $9.5 million of gross capitalized cloud-based software implementation costs and $0.9 million of related accumulated amortization, for a net balance of $8.6 million, made up of $1.9 million recorded within Prepaid expenses and other current assets and $6.7 million recorded within Other assets on the Company’s consolidated balance sheets.

As of February 3, 2024, the Company had $2.5 million of gross capitalized cloud-based software implementation costs and $0.6 million of related accumulated amortization, for a net balance of $1.9 million, made up of $0.9 million recorded within Prepaid expenses and other current assets and $1.0 million recorded within Other assets on the Company’s consolidated balance sheets.
Debt Issuance Costs

Debt Issuance Costs

The Company defers costs directly associated with acquiring third-party financing. Debt issuance costs are deferred and amortized using the effective interest rate method over the term of the related long-term debt agreement and the straight-line method for the revolving credit agreement. Debt issuance costs related to long-term debt are reflected as a direct deduction from the carrying amount of the debt on the Company’s consolidated balance sheets. From time-to-time the Company could make prepayments on the long-term debt and a portion of the debt issuance costs associated with the prepayment would be accelerated and expensed at that time.
Interest Income

Interest Income

The Company recorded interest income of $2.6 million, $2.8 million and $1.2 million for Fiscal Years 2024, 2023 and 2022, respectively.
Income Taxes

Income Taxes

The Company accounts for income taxes using the asset and liability method and elected to be taxed as a C corporation. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying values and their respective tax bases, using enacted tax rates expected to be applicable in the years in which the temporary differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company evaluates the realizability of its deferred tax assets and establishes a valuation allowance when it is more likely than not that all or a portion of the deferred tax assets will not be realized. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected, scheduling of anticipated reversals of taxable temporary differences, and considering prudent and feasible tax planning strategies.

The Company records liabilities for uncertain income tax positions based on a two-step process. The first step is recognition, where an individual tax position is evaluated as to whether it has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have less than a 50% likelihood of being sustained, no tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, the Company performs the second step of measuring the benefit to be recorded. The amount of benefit that may be recognized is the largest amount that has greater than 50% likelihood of being realized on ultimate settlement. The actual benefits ultimately realized may differ from the estimates. In future periods, changes in facts, circumstances and new information may require the Company to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in income tax expense and liability in the period in which such changes occur.

Any interest or penalties incurred are recorded in Income tax expense in the accompanying consolidated statements of operations and comprehensive income. The Company incurred immaterial amounts of interest expense and penalties related to income taxes for Fiscal Years 2024, 2023 and 2022.
Comprehensive Income

Comprehensive Income

Comprehensive income is a measure of net income and all other changes in equity that result from transactions other than with equity holders and would normally be recorded in the consolidated statements of shareholders’ equity and the consolidated statements of comprehensive income. The Company’s management has determined that net income is the only component of the Company’s comprehensive income. Accordingly, there is no difference between net income and comprehensive income.
Share-Based Payment

Share-Based Payment

The Company accounts for share-based payment for employees and directors by recognizing the fair value of share-based payments as an expense in the calculation of net income, based on the grant-date fair value. The Company recognizes share-based compensation expense in the periods in which the employee or director is required to provide service, which is generally over the vesting period of the individual equity instruments. The fair value of the share-based awards is determined using either the Black-Scholes option pricing model, Monte Carlo simulation model or the stock price on the date of grant.

Liability-classified awards issued to non-employees are measured at the end of the reporting period and must be re-measured at each reporting period until a grant date is established and the awards are issued. Once the grant date is established and the options are issued, they become equity-classified and the corresponding liability is reclassified from accrued liabilities to additional paid-in capital on the consolidated balance sheets. Compensation cost for each period until grant date establishment and the awards are vested is based on the change in the fair value of the liability-classified awards each reporting period. Ultimately, the share-based compensation expense recognized for a liability- classified award equals the amount for which the award granted and vested.

On December 9, 2024, the Board awarded 100,000 performance-based stock options to Elm St Advisors, LLC (“Elm Street”) under the J.Jill, Inc. Omnibus Equity Incentive Plan (“2024 Elm Street Award”). The 2024 Elm Street Award vests every two months in three equal installments as Elm Street provides its services over the six-month term and upon Elm Street successfully completing certain performance milestones. The 2024 Elm Street Award expires three years from the date of grant if unexercised. Refer to Note 19. Subsequent Events for additional details.

Share-based awards granted by the Company during Fiscal Year 2024 included both equity-classified and liability-classified awards and compensation expense for these awards was recognized in Selling, general, and administrative expenses in the consolidated statements of operations and comprehensive income. Forfeitures were recorded as they occurred.

All of the share-based awards granted by the Company to its employees during Fiscal Years 2024, 2023 and 2022 were considered equity-classified awards and compensation expense for these awards was recognized in Selling, general, and administrative expenses in the consolidated statements of operations and comprehensive income. Forfeitures were recorded as they occurred.
Earnings Per Share

Earnings Per Share

Basic net income per common share attributable to common shareholders is calculated by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income per common share attributable to common shareholders is calculated by dividing net income attributable to common shareholders by the diluted weighted average number of common shares outstanding for the period. There were 0.6 million, 0.3 million and 0.3 million of potentially dilutive securities outstanding for Fiscal Years 2024, 2023 and 2022, respectively.
Credit Card Agreement

Credit Card Agreement

During Fiscal Year 2023 the Company entered into an amended and restated arrangement with a third party to provide a private label credit card to its customers through January 31, 2031, and will automatically renew thereafter for successive one-year terms, unless either party provides a notice of intention to terminate. The Company does not bear the credit risk associated with the private label credit card at any point prior to the termination of the agreement, at which point the Company would be obligated to purchase the receivables.

The Company receives royalty payments through its private label credit card agreement. The royalty payments are recognized as revenue when they are earned each month. Royalty payments recognized were $3.7 million, $2.4 million, and $3.9 million for the Fiscal Years 2024, 2023 and 2022, respectively.

The Company also receives reimbursements for costs of marketing programs related to the private label credit card, which are recorded as revenue as earned and the costs incurred are recorded as Selling, general and administrative expenses in the accompanying

consolidated statements of operations and comprehensive income. Reimbursements for costs of marketing programs of $1.6 million, $1.3 million, and $1.6 million were recognized in revenue in Fiscal Years 2024, 2023 and 2022, respectively.

The previous credit card agreement provided a signing bonus to the Company, which was recognized as revenue through August 2023. The amended and restated agreement provided for an upfront payment which is being recorded as revenue on a straight line basis through January 2031. See Note 4. Revenues for additional information related to our upfront payment.
Employee Benefit Plan

Employee Benefit Plan

The Company has a 401(k) retirement plan covering all eligible employees who meet certain age and employment requirements pursuant to Section 401(k) of the Internal Revenue Code. Subject to certain dollar limits, eligible employees may contribute a portion of their pretax annual compensation to the plan, on a tax-deferred basis. The plan operates on a calendar year basis. The Company contributes up to 50% of the first 6% of the gross salary of the employee, which vests immediately. Discretionary contributions made by the Company for the Fiscal Years 2024, 2023 and 2022 were $1.9 million, $1.5 million, and $1.2 million, respectively.
Self-Insured Group Health Insurance Reserves

Self-Insured Group Health Insurance Reserves

During the fourth quarter of Fiscal Year 2024, the Company transitioned to a self-insured group health insurance program. Prior to this transition, the Company had fully insured cost group health insurance programs. The Company is now self-insured through retentions or deductibles with stop-loss insurance for medical claims that reach a certain limit per claim. The Company records its liability for estimated incurred losses based on historical claim data in the accompanying consolidated financial statements on an undiscounted basis. While the Company believes these reserves to be adequate, it is possible that the ultimate liabilities will exceed such estimates. Such costs are accrued based on known claims and estimates of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates. The accrued liability for self-insurance is included in Accrued expenses and other current liabilities on the consolidated balance sheets.
Concentration of Credit Risks

Concentration of Credit Risks

Financial instruments that potentially subject the Company to concentrations of credit risk principally consist of cash held in financial institutions and accounts receivable. The Company considers the credit risk associated with these financial instruments to be minimal. Cash is held by financial institutions with high credit ratings and the Company has not historically sustained any credit losses associated with its cash balances. The Company evaluates the credit risk associated with accounts receivable to determine if an allowance for estimated credit losses is necessary. As of February 1, 2025 and February 3, 2024, the Company determined that no allowance for estimated credit losses was necessary.
Recently Issued / Adopted Accounting Standards

Recently Issued Accounting Standards

In October 2023, the FASB issued ASU 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative”. This ASU amends the FASB Accounting Standards Codification in response to the SEC’s disclosure update and simplification initiative. This guidance will be applied prospectively with effective date for each amendment to be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company is assessing what impact this guidance will have on the Company’s consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures”. This ASU requires enhanced income tax disclosures, including disaggregation of information in the rate reconciliation table and disaggregated information related to income taxes paid. The other amendments in this update improve the effectiveness and comparability of disclosures by (1) adding disclosures of pretax income (or loss) and income tax expense (or benefit), and (2) removing disclosures that are no longer considered cost beneficial or relevant. The amendments in ASU 2023-09 are effective for the fiscal year ending January 31, 2026. Early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on its disclosures in the Company’s consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, " Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40)." Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. These standards provide guidance to expand disclosures related to the disaggregation of income statement expenses. The standard requires, in the notes to the financial statements, disclosure of specified information about certain costs and expenses which includes purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense caption. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, on a retrospective or prospective basis, with early adoption permitted. The

Company is currently evaluating the impact that this guidance will have on its disclosures in the Company’s consolidated financial statements.

Recently Adopted Accounting Standards

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting, Improvements to Reportable Segment Disclosures”. This ASU enhances the disclosures required about a public entity’s reportable segments in its annual and interim condensed consolidated financial statements. The amendments in this update require additional detailed and enhanced information about reportable segments’ expense, including significant segment expenses and other segment items that bridge segment revenue, significant expenses to segment profit or loss. The ASU also requires disclosure of the title and position of the Chief Operating Decision Maker (“CODM”) on an annual basis as well as an explanation of how the CODM uses the reported measures and other disclosures. The amendments in this update do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The Company adopted ASU 2023-07 for the Fiscal Year ended February 1, 2025. Refer to Note 12. Segment Reporting for additional details.
v3.25.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Feb. 01, 2025
Accounting Policies [Abstract]  
Summary of Supplemental Cash Flow Information

The following table shows supplemental cash flow information (in thousands):

 

 

 

For the Fiscal Year Ended

 

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

Cash paid for interest, net of capitalized interest

 

$

15,426

 

 

$

25,948

 

 

$

11,722

 

Cash paid for taxes

 

 

15,563

 

 

 

13,355

 

 

 

19,686

 

Cash received for income tax refunds

 

 

148

 

 

 

35

 

 

 

10,257

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

 

12,473

 

 

 

2,061

 

 

 

1,789

 

Noncash investing and financing activities:

 

 

 

 

 

 

 

 

 

Capital expenditures financed with the ending balance in accounts payable and accrued expenses

 

 

381

 

 

 

318

 

 

 

386

 
Reconciliation of Cash, Cash Equivalents, and Restricted Cash Reported within the Consolidated Balance Sheets

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statement of cash flows:

 

 

 

For the Fiscal Year Ended

 

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

 Cash and cash equivalents

 

$

35,427

 

 

$

62,172

 

 

$

87,053

 

 Restricted cash reported in other current assets

 

 

363

 

 

 

368

 

 

 

368

 

 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows

 

$

35,790

 

 

$

62,540

 

 

$

87,421

 
Estimated Useful Lives of Property and Equipment Asset

Estimated useful lives of property and equipment asset categories are as follows:

 

Furniture, fixtures and equipment

5-7 years

Computer software and hardware

3-7 years

Leasehold improvements

Shorter of estimated useful life or lease term
v3.25.1
Revenues (Tables)
 12 Months Ended
Feb. 01, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Revenues Disaggregated by Revenue Source The following table presents revenues disaggregated by revenue source (in thousands):

 

 

 

For the Fiscal Year Ended

 

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

Retail

 

$

320,676

 

 

$

323,259

 

 

$

327,084

 

Direct

 

 

290,181

 

 

 

284,784

 

 

 

291,444

 

Net sales

 

$

610,857

 

 

$

608,043

 

 

$

618,528

 

Remaining Performance Obligations

As of February 1, 2025, the transaction price allocated to remaining performance obligations amount to $0.5 million, which relate to the marketing and promotion of the Company’s private label credit card program. This amount will be recognized as revenue evenly through January 2031.
Schedule of Contract Liabilities Total contract liabilities consisted of the following (in thousands):

 

 

 

February 1, 2025

 

 

February 3, 2024

 

Contract liabilities:

 

 

 

 

 

 

Upfront payment (1)

 

$

486

 

 

$

570

 

Unredeemed gift cards (2)

 

 

7,003

 

 

 

7,005

 

Total contract liabilities

 

$

7,489

 

 

$

7,575

 
(1)
The current and noncurrent portions of the upfront payment received in connection with the private label credit card agreement are included in Accrued expenses and other current liabilities and Other long-term liabilities, respectively, in the Company’s consolidated balance sheets.
(2)
Revenue recognized for Fiscal Year 2024 related to the contract liability balance as of February 3, 2024 was $3,931.
v3.25.1
Prepaid Expenses and Other Current Assets (Tables)
 12 Months Ended
Feb. 01, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets include the following (in thousands):

 

 

 

February 1, 2025

 

 

February 3, 2024

 

Prepaid rent

 

$

2,260

 

 

$

1,921

 

Prepaid catalog costs

 

 

1,912

 

 

 

1,769

 

Prepaid store supplies

 

 

2,278

 

 

 

1,969

 

Prepaid insurance

 

 

1,360

 

 

 

1,299

 

Prepaid software project costs

 

 

1,894

 

 

 

883

 

Prepaid software maintenance costs

 

 

3,202

 

 

 

2,322

 

Returns reserve asset

 

 

2,732

 

 

 

2,681

 

Income tax receivable

 

 

281

 

 

 

1,779

 

Other prepaid expenses

 

 

3,585

 

 

 

2,492

 

Other current assets (a)

 

 

787

 

 

 

541

 

Total prepaid expenses and other current assets

 

$

20,291

 

 

$

17,656

 

 

(a)
Other current assets include restricted cash of $0.4 million which is used solely for funding employee healthcare costs.
v3.25.1
Goodwill and Other Intangible Assets (Tables)
 12 Months Ended
Feb. 01, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Other Intangible Assets

A summary of other intangible assets as of February 1, 2025 and February 3, 2024 is as follows (in thousands):

 

 

 

 

 

February 1, 2025

 

 

 

Weighted Average Useful Life (Years)

 

Gross

 

 

Accumulated Amortization

 

 

Accumulated Impairment

 

 

Carrying Amount

 

Indefinite-lived:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Trade name

 

N/A

 

$

58,100

 

 

$

—

 

 

$

24,100

 

 

$

34,000

 

Definite-lived:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Customer relationships

 

13.2

 

 

134,200

 

 

 

104,565

 

 

 

2,620

 

 

 

27,015

 

Total intangible assets

 

 

 

$

192,300

 

 

$

104,565

 

 

$

26,720

 

 

$

61,015

 

 

 

 

 

 

February 3, 2024

 

 

 

Weighted Average Useful Life (Years)

 

Gross

 

 

Accumulated Amortization

 

 

Accumulated Impairment

 

 

Carrying Amount

 

Indefinite-lived:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Trade name

 

N/A

 

$

58,100

 

 

$

—

 

 

$

24,100

 

 

$

34,000

 

Definite-lived:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Customer relationships

 

13.2

 

 

134,200

 

 

 

99,334

 

 

 

2,620

 

 

 

32,246

 

Total intangible assets

 

 

 

$

192,300

 

 

$

99,334

 

 

$

26,720

 

 

$

66,246

 

 
Summary of Estimated Useful Lives of Intangible Assets

The definite-lived intangible assets are amortized over the period the Company expects to receive the related economic benefit, which for customer lists is based upon estimated future net cash inflows. The estimated useful lives of intangible assets are as follows:

 

Asset

Amortization Method

Estimated Useful Life

Customer lists

Pattern of economic benefit

9 - 16 years
Summary of Estimated Amortization Expense

The estimated amortization expense for each of the next five years and thereafter is as follows (in thousands):

 

Fiscal Year

 

Estimated Amortization Expense

 

2025

$

4,693

 

2026

 

4,556

 

2027

 

4,418

 

2028

 

4,246

 

2029

 

4,109

 

Thereafter

 

4,993

 

Total

$

27,015

 
v3.25.1
Property and Equipment (Tables)
 12 Months Ended
Feb. 01, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment

Property and equipment at February 1, 2025 and February 3, 2024 consist of the following (in thousands):

 

 

 

February 1, 2025

 

 

February 3, 2024

 

Leasehold improvements

 

$

115,546

 

 

$

108,741

 

Furniture, fixtures and equipment

 

$

49,495

 

 

 

48,276

 

Computer hardware and software

 

 

69,911

 

 

 

69,926

 

Total property and equipment, gross

 

 

234,952

 

 

 

226,943

 

Accumulated depreciation

 

 

(187,949

)

 

 

(176,546

)

 

 

 

47,003

 

 

 

50,397

 

Construction in progress

 

 

8,322

 

 

 

3,721

 

Property and equipment, net

 

$

55,325

 

 

$

54,118

 
v3.25.1
Accrued Expenses and Other Current Liabilities (Tables)
 12 Months Ended
Feb. 01, 2025
Payables and Accruals [Abstract]  
Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities include the following (in thousands):

 

 

 

February 1, 2025

 

 

February 3, 2024

 

Accrued payroll and benefits

 

$

9,725

 

 

$

11,288

 

Accrued returns reserve

 

 

7,494

 

 

 

7,724

 

Gift cards redeemable

 

 

7,003

 

 

 

7,005

 

Accrued professional fees

 

 

2,309

 

 

 

1,629

 

Accrued corporate expenses (a)

 

 

1,458

 

 

 

2,158

 

Accrued retail expenses

 

 

1,382

 

 

 

2,746

 

Taxes, other than income taxes

 

 

2,635

 

 

 

2,709

 

Accrued occupancy

 

 

1,118

 

 

 

1,285

 

Self-insured group health insurance reserves

 

 

765

 

 

 

—

 

Other accrued employee costs

 

 

2,044

 

 

 

1,557

 

Other

 

 

4,546

 

 

 

4,182

 

Total accrued expenses and other current liabilities

 

$

40,479

 

 

$

42,283

 
(a)
Included within Accrued corporate expenses as of February 1, 2025 is a liability-classified share-based payment of $0.4 million related to stock options granted to Elm Street consultant, which are subject to remeasurement at each reporting date until a grant and vesting date is established. See Note 17 Share-Based Payment for further details.
Schedule of Changes in Accrued Returns Reserve

The following table reflects the changes in the accrued returns reserve for Fiscal Years 2024, 2023 and 2022 (in thousands):

 

Accrued returns reserve

 

Beginning
of Period

 

 

Charged to
Expenses

 

 

Deductions

 

 

End of
Period

 

Fiscal Year Ended January 28, 2023

 

$

11,003

 

 

$

144,474

 

 

$

(148,775

)

 

$

6,702

 

Fiscal Year Ended February 3, 2024

 

 

6,702

 

 

 

161,217

 

 

 

(160,195

)

 

 

7,724

 

Fiscal Year Ended February 1, 2025

 

 

7,724

 

 

 

154,599

 

 

 

(154,829

)

 

 

7,494

 
Schedule of Changes in Accrued Self Insurance Reserve

The following table reflects the changes in the accrued self-insurance reserve for Fiscal Year 2024 (in thousands):

 

Self-insured group health insurance reserves

 

Beginning
of Period

 

 

Charged to
Expenses

 

 

Deductions

 

 

End of
Period

 

Fiscal Year Ended February 1, 2025

 

$

—

 

 

$

1,307

 

 

$

(542

)

 

$

765

 
v3.25.1
Debt (Tables)
 12 Months Ended
Feb. 01, 2025
Debt Disclosure [Abstract]  
Components of Outstanding Long-term debt

The components of the Company’s outstanding long-term debt at February 1, 2025 and February 3, 2024 were as follows (in thousands):

 

 

 

February 1, 2025

 

 

 

Outstanding Principal Balance

 

 

Original Issue Discount

 

 

Capitalized Fees & Expenses

 

 

Balance Sheet

 

Net long-term debt (Term Loan due 2028)

 

$

74,288

 

 

$

(3,652

)

 

$

(1,217

)

 

$

69,419

 

 

 

 

February 3, 2024

 

 

 

Outstanding Principal Balance

 

 

Original Issue Discount

 

 

Capitalized Fees & Expenses

 

 

Balance Sheet

 

Term Loan due 2028

 

$

168,438

 

 

$

(9,367

)

 

$

(3,123

)

 

$

155,948

 

Less: Current portion (including Excess Cash Flow payment)

 

 

(35,353

)

 

 

—

 

 

 

—

 

 

 

(35,353

)

Net long-term debt

 

$

133,085

 

 

$

(9,367

)

 

$

(3,123

)

 

$

120,595

 
v3.25.1
Fair Value Measurements (Tables)
 12 Months Ended
Feb. 01, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present the carrying value and fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of February 1, 2025 and February 3, 2024, respectively (in thousands):

 

 

 

 

 

 

Fair Value as of February 1, 2025

 

 

 

Carrying Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial instruments not carried at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

     Total debt

 

$

69,419

 

 

$

—

 

 

$

73,968

 

 

$

—

 

Total financial instruments not carried at fair value

 

$

69,419

 

 

$

—

 

 

$

73,968

 

 

$

—

 

 

 

 

 

 

 

Fair Value as of February 3, 2024

 

 

 

Carrying Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial instruments not carried at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

     Total debt

 

$

155,948

 

 

$

—

 

 

$

161,871

 

 

$

—

 

Total financial instruments not carried at fair value

 

$

155,948

 

 

$

—

 

 

$

161,871

 

 

$

—

 

 
v3.25.1
Segment Reporting (Tables)
 12 Months Ended
Feb. 01, 2025
Segment Reporting [Abstract]  
Schedule of Extract of Financial Information that Regularly Provided to CODM

An extract of the financial information that is regularly provided to the CODM for the Company’s single reportable segment is listed below:

 

For the Fiscal Year Ended

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

Net sales

$

610,857

 

 

$

608,043

 

 

$

618,528

 

Costs of goods sold (exclusive of depreciation and amortization)

 

181,001

 

 

 

177,261

 

 

 

193,218

 

Selling expenses

 

188,815

 

 

 

186,209

 

 

 

182,163

 

Marketing expenses

 

52,690

 

 

 

51,639

 

 

 

51,389

 

General and administrative expenses

 

82,090

 

 

 

80,696

 

 

 

82,319

 

Other segment items (a)

 

66,778

 

 

 

76,037

 

 

 

67,264

 

Net Income and total comprehensive income

$

39,483

 

 

$

36,201

 

 

$

42,175

 
(a)
Other segment items represent the Company's order management system upgrade, management incentives, impairments of long-lived assets, loss on extinguishment of debt, loss on debt refinancing, interest expense, interest income, income taxes, and depreciation and amortization.
v3.25.1
Operating Leases (Tables)
 12 Months Ended
Feb. 01, 2025
Leases [Abstract]  
Components of Lease Expense

The components of lease expense were as follows (in thousands):

 

 

 

 

 

For the Fiscal Year Ended

 

Lease Cost

 

Classification

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

Operating lease cost

 

SG&A Expenses

 

$

39,866

 

 

$

39,102

 

 

$

38,713

 

Variable lease cost

 

SG&A Expenses

 

 

3,675

 

 

 

3,089

 

 

 

3,006

 

Total lease cost

 

 

 

$

43,541

 

 

$

42,191

 

 

$

41,719

 

For Fiscal Years 2024 and 2022, noncash impairment charges of $0.3 million and $0.6 million, respectively, were recorded. The impairment charges related primarily to a right-of-use asset which arose from the revised sublease assumptions relating to one floor of the corporate headquarters located in Quincy, Massachusetts that was vacated in July 2019. There were no impairments recorded in Fiscal Year 2023.
Schedule Of Lease Terms And Discount Rate

The weighted average remaining lease term and weighted average discount rate for our operating leases are as follows:

 

Lease Term and Discount Rate

 

February 1, 2025

 

Weighted-average remaining lease term (in years)

 

 

 

Operating leases

 

 

5.0

 

Weighted-average discount rate

 

 

 

Operating leases

 

 

6.8

%
Schedule of Maturities of Lease Liabilities

Maturities of lease liabilities as of February 1, 2025 were as follows (in thousands):

 

Fiscal Year

 

Operating Leases(1)

 

2025

 

$

38,538

 

2026

 

 

39,613

 

2027

 

 

27,928

 

2028

 

 

21,212

 

2029

 

 

15,139

 

Thereafter

 

 

24,394

 

Subtotal

 

 

166,824

 

Less: Imputed interest

 

 

27,424

 

Present value of lease liabilities

 

$

139,400

 
(1)
There were no operating leases with legally binding minimum lease payments for leases signed but for which the Company has not taken possession.
v3.25.1
Income Taxes (Tables)
 12 Months Ended
Feb. 01, 2025
Income Tax Disclosure [Abstract]  
Schedule of Provision for Income Taxes

The provision for income taxes for the Fiscal Years 2024, 2023, and 2022 consists of the following (in thousands):

 

 

 

For the Fiscal Year Ended

 

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

Current

 

 

 

 

 

 

 

 

 

U.S. Federal

 

$

12,668

 

 

$

9,148

 

 

$

14,562

 

State and local

 

 

3,408

 

 

 

3,108

 

 

 

2,582

 

Total current

 

 

16,076

 

 

 

12,256

 

 

 

17,144

 

Deferred tax (benefit) expense

 

 

 

 

 

 

 

 

 

U.S. Federal

 

 

(1,502

)

 

 

1,971

 

 

 

(985

)

State and local

 

 

(76

)

 

 

(1,063

)

 

 

340

 

Total deferred tax (benefit) expense

 

 

(1,578

)

 

 

908

 

 

 

(645

)

Total income tax provision

 

$

14,498

 

 

$

13,164

 

 

$

16,499

 
Schedule of Reconciliation of Statutory Federal Income Tax Rate

A reconciliation of the federal statutory income tax rate of 21% to the Company’s effective tax rate is as follows for the periods presented:

 

 

 

For the Fiscal Year Ended

 

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

Federal statutory income tax rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State income taxes, net of federal tax effect

 

 

4.9

%

 

 

6.0

%

 

 

6.1

%

Disallowed interest

 

 

—

 

 

 

1.8

%

 

 

—

 

Disallowed officer compensation

 

 

2.5

%

 

 

2.5

%

 

 

2.1

%

Valuation allowance

 

 

—

 

 

 

(2.7

)%

 

 

(2.2

)%

Equity-based compensation expense

 

 

(1.5

)%

 

 

(1.6

)%

 

 

(0.3

)%

Charitable contributions

 

 

(0.2

)%

 

 

(0.2

)%

 

 

(0.2

)%

Tax return to provision adjustments

 

 

—

 

 

 

0.1

%

 

 

1.5

%

Other

 

 

0.2

%

 

 

(0.2

)%

 

 

0.1

%

Effective tax rate

 

 

26.9

%

 

 

26.7

%

 

 

28.1

%

 
Components of Deferred Income Tax Assets and (Liabilities)

The components of deferred tax assets (liabilities) were as follows (in thousands):

 

 

 

 

 

 

 

February 1, 2025

 

 

February 3, 2024

 

Deferred tax assets

 

 

 

 

 

 

Accrued expenses

 

$

4,286

 

 

$

3,981

 

State net operating loss carryforward

 

 

320

 

 

 

1,367

 

Start-up costs

 

 

294

 

 

 

351

 

Original issue discount

 

 

1,741

 

 

 

—

 

Lease liabilities

 

 

35,346

 

 

 

35,643

 

Total deferred tax assets, gross

 

 

41,987

 

 

 

41,342

 

Deferred tax liabilities

 

 

 

 

 

 

Inventory

 

 

(750

)

 

 

(714

)

Lease assets

 

 

(28,893

)

 

 

(27,883

)

Fixed assets

 

 

(5,523

)

 

 

(6,394

)

Intangible assets

 

 

(15,628

)

 

 

(16,823

)

Prepaid expenses

 

 

(582

)

 

 

(495

)

Total deferred tax liabilities

 

 

(51,376

)

 

 

(52,309

)

Net deferred tax liabilities

 

$

(9,389

)

 

$

(10,967

)
Summary of Changes in Unrecognized Income Tax Benefits

The following table summarizes the changes in the Company’s unrecognized income tax benefits for Fiscal Years 2024, 2023 and 2022 (in thousands):

 

 

 

For the Fiscal Year Ended

 

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

Balance at the beginning of the period

 

$

127

 

 

$

425

 

 

$

399

 

(Decreases) Increases for tax positions related to prior periods

 

 

—

 

 

 

(298

)

 

 

26

 

Balance at the end of the period

 

$

127

 

 

$

127

 

 

$

425

 
v3.25.1
Net Income (Loss) Per Share (Tables)
 12 Months Ended
Feb. 01, 2025
Earnings Per Share [Abstract]  
Computation of Basic and Diluted Net Income (Loss) Per Common Share

The following table summarizes the computation of basic and diluted net income per common share for the Fiscal Years 2024, 2023 and 2022 (in thousands, except share and per share data):

 

 

 

For the Fiscal Year Ended

 

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

Numerator

 

 

 

 

 

 

 

 

 

Net income

 

$

39,483

 

 

$

36,201

 

 

$

42,175

 

Denominator

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

14,956,165

 

 

 

10,561,652

 

 

 

10,124,962

 

Assumed exercise of warrants

 

 

—

 

 

 

3,581,475

 

 

 

3,810,441

 

Weighted average common shares, basic

 

 

14,956,165

 

 

 

14,143,127

 

 

 

13,935,403

 

Dilutive effect of share-based awards

 

 

180,668

 

 

 

261,343

 

 

 

349,632

 

Weighted average common shares, diluted

 

 

15,136,833

 

 

 

14,404,470

 

 

 

14,285,035

 

Net income per common share, basic

 

$

2.64

 

 

$

2.56

 

 

 

3.03

 

Net income per common share, diluted

 

$

2.61

 

 

$

2.51

 

 

$

2.95

 
Share-based rewards
v3.25.1
Share-Based Payment (Tables)
 12 Months Ended
Feb. 01, 2025
Restricted Stock Units [Member]  
Summary of RSUs and PSUs Award Activity

The following table summarizes the RSUs award activity, for Fiscal Year 2024:

 

Number of RSUs

 

Weighted Average Grant Date Fair Value

 

Unvested units outstanding at February 3, 2024

 

458,299

 

$

14.15

 

Granted

 

272,683

 

$

31.88

 

Vested

 

(240,185

)

$

13.63

 

Forfeited

 

(10,909

)

$

32.55

 

Unvested units outstanding at February 1, 2025

 

479,888

 

$

23.66

 

 
Performance Stock Units [Member]  
Summary of Fair Value Assumptions

The fair value of the PSUs for which the performance is based on an Adjusted EBITDA goal was determined based on the market price of the Company’s shares on the date of the grant. Additionally, for those awards whose performance is based on a TSR growth goal, the fair value was estimated on the grant date using a Monte Carlo simulation as of the grant date. This valuation was performed prior to any declaration of cash dividends and the issuance of dividend equivalent PSUs. Except for the dividend equivalent PSUs, no additional PSUs were granted following this fair valuation, which is based on the assumptions noted below:

 

Monte Carlo Simulation Assumptions

For the Fiscal Year Ended

 

February 1, 2025

Risk Free Interest Rate

4.20%

Expected Dividend Yield

1.0%

Expected Volatility

47.1%-47.9%

Expected Term

1.58-1.74

 
Summary of RSUs and PSUs Award Activity

The following table summarizes the PSU awards activity for Fiscal Year 2024:

 

Number of PSUs

 

Weighted Average Grant Date Fair Value

 

Unvested units outstanding at February 3, 2024

 

62,709

 

$

30.47

 

Granted

 

105,034

 

$

40.21

 

Unvested units outstanding at February 1, 2025

 

167,743

 

$

36.56

 
Performance-Based Stock Options [Member]  
Summary of Fair Value Assumptions

The fair value of the performance-based stock options as of February 1, 2025 was estimated using the Black-Scholes option-pricing model with the following assumptions:

 

Black Scholes Options Pricing Model

 

Risk Free Interest Rate

4.20%

Expected Dividend Yield

1.0%

Expected Volatility

46.0-46.8%

Expected Term

1.44-1.61

As of February 1, 2025, the outstanding stock options have a weighted average fair value of $6.84, weighted average exercise price of $26.63 and a weighted average remaining contractual term of 2.9 years.
v3.25.1
General - Additional Information (Detail)
Feb. 01, 2025
Store
Minimum [Member]  
Organization Consolidation And Presentation Of Financial Statements [Line Items]  
Number of stores 250
v3.25.1
Summary of Significant Accounting Policies - Additional Information (Detail)
 12 Months Ended
Dec. 09, 2024
shares
Feb. 01, 2025
USD ($)
Segment
Customer
Feb. 03, 2024
USD ($)
shares
Jan. 28, 2023
USD ($)
shares
Jan. 29, 2022
USD ($)
shares
Schedule Of Significant Accounting Policies [Line Items]          
Prepaid software maintenance costs   $ 3,202,000 $ 2,322,000    
Reclassification of prepaid software maintenance costs     2,500,000    
Restricted cash   $ 400,000 $ 400,000 $ 400,000  
Restricted Cash, Statement of Financial Position [Extensible Enumeration]   Prepaid Expense and Other Assets, Current Prepaid Expense and Other Assets, Current Prepaid Expense and Other Assets, Current  
Number of reportable segments | Segment   1      
Number of customers with more than 10% of revenues | Customer   0      
Cash account balances exceed FDIC insured limits   $ 250,000      
Accounts receivable arising from contracts with customers       $ 7,000,000  
Share based compensation arrangement by share based payment award description   The 2024 Elm Street Award vests every two months in three equal installments as Elm Street provides its services over the six-month term and upon Elm Street successfully completing certain performance milestones. The 2024 Elm Street Award expires three years from the date of grant if unexercised.      
Inventory reserve   $ 1,100,000 $ 800,000    
Amortization of cloud-based software implementation costs   900,000 600,000    
Gross capitalized cloud-based software implementation costs   55,800,000 54,600,000    
Capitalized computer software, accumulated amortization   45,600,000 41,300,000    
Interest income   2,550,000 $ 2,790,000 $ 1,228,000  
Dilutive securities outstanding | shares     600,000 300,000 300,000
Net sales   $ 610,857,000 $ 608,043,000 $ 618,528,000  
Credit card arrangement extension, description   the Company entered into an amended and restated arrangement with a third party to provide a private label credit card to its customers through January 31, 2031, and will automatically renew thereafter for successive one-year terms, unless either party provides a notice of intention to terminate.      
Royalty payments recognized as revenue   $ 610,857,000 608,043,000 618,528,000  
Employee benefit plan description of elective contributions   The Company contributes up to 50% of the first 6% of the gross salary of the employee, which vests immediately.      
Discretionary contributions made by Company     1,900,000 1,500,000 $ 1,200,000
Allowance for doubtful accounts   $ 0 0    
Cloud Based Software [Member]          
Schedule Of Significant Accounting Policies [Line Items]          
Gross capitalized cloud-based software implementation costs   9,500,000 2,500,000    
Capitalized computer software, accumulated amortization   900,000 600,000    
Capitalized computer software, net balance   8,600,000 1,900,000    
Elm Street [Member] | Performance-Based Stock Options [Member] | Omnibus Equity Incentive Plan [Member]          
Schedule Of Significant Accounting Policies [Line Items]          
Option granted to purchase shares of common stock | shares 100,000        
Prepaid Expenses and Other Current Assets [Member] | Cloud Based Software [Member]          
Schedule Of Significant Accounting Policies [Line Items]          
Capitalized computer software, net balance   1,900,000 900,000    
Other Assets [Member] | Cloud Based Software [Member]          
Schedule Of Significant Accounting Policies [Line Items]          
Capitalized computer software, net balance   $ 6,700,000 1,000,000    
Reclassification [Member]          
Schedule Of Significant Accounting Policies [Line Items]          
Net sales     3,400,000 3,300,000  
Royalty payments recognized as revenue     3,400,000 3,300,000  
Royalty [Member]          
Schedule Of Significant Accounting Policies [Line Items]          
Net sales     3,700,000 2,400,000 3,900,000
Royalty payments recognized as revenue     3,700,000 2,400,000 3,900,000
Selling, General and Administrative Expenses [Member]          
Schedule Of Significant Accounting Policies [Line Items]          
Other advertising expense     21,400,000 21,000,000 22,000,000
Outbound shipping costs     21,400,000 20,200,000 20,400,000
Selling, General and Administrative Expenses [Member] | Catalog [Member]          
Schedule Of Significant Accounting Policies [Line Items]          
Advertising expenses     18,000,000 17,000,000 16,800,000
Operating Expenses [Member]          
Schedule Of Significant Accounting Policies [Line Items]          
Reimbursements for credit card marketing program     $ 1,600,000 $ 1,300,000 $ 1,600,000
Minimum [Member]          
Schedule Of Significant Accounting Policies [Line Items]          
Threshold period for third-party credit and debit transactions   2 days      
Maximum [Member]          
Schedule Of Significant Accounting Policies [Line Items]          
Threshold period for third-party credit and debit transactions   5 days      
v3.25.1
Summary of Significant Accounting Policies - Summary of Supplemental Cash Flow Information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Supplemental cash flow information:      
Cash paid for interest, net of capitalized interest $ 15,426 $ 25,948 $ 11,722
Cash paid for taxes 15,563 13,355 19,686
Cash received for income tax refunds 148 35 10,257
Right-of-use assets obtained in exchange for new operating lease liabilities 12,473 2,061 1,789
Noncash investing and financing activities:      
Capital expenditures financed with the ending balance in accounts payable and accrued expenses $ 381 $ 318 $ 386
v3.25.1
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents, and Restricted Cash Reported within the Consolidated Balance Sheets (Details) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Jan. 29, 2022
Cash and Cash Equivalents [Abstract]        
Cash and cash equivalents $ 35,427 $ 62,172 $ 87,053  
Restricted cash reported in other current assets 363 368 368  
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 35,790 [1] $ 62,540 [1] $ 87,421 [1] $ 36,325
[1] Includes $0.4 million of restricted cash for the fiscal years ended February 1, 2025, February 3, 2024 and January 28, 2023. The Company recorded restricted cash in Prepaid expenses and other current assets as presented in the consolidated balance sheets.
v3.25.1
Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment Asset (Detail)
Feb. 01, 2025
Furniture, Fixtures and Equipment [Member] | Minimum [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 5 years
Furniture, Fixtures and Equipment [Member] | Maximum [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 7 years
Computer Software and Hardware [Member] | Minimum [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 3 years
Computer Software and Hardware [Member] | Maximum [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 7 years
Leasehold Improvements [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] us-gaap:UsefulLifeTermOfLeaseMember
v3.25.1
Revenues - Schedule of Revenues Disaggregated by Revenue Source (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Disaggregation Of Revenue [Line Items]      
Net sales $ 610,857 $ 608,043 $ 618,528
Retail [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 320,676 323,259 327,084
Direct [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales $ 290,181 $ 284,784 $ 291,444
v3.25.1
Revenues - Schedule of Contract Liabilities (Detail) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Contract liabilities:      
Signing bonus     $ 100
Upfront payment $ 486 $ 570  
Unredeemed gift cards 7,003 7,005 $ 7,100
Total contract liabilities $ 7,489 $ 7,575  
v3.25.1
Revenues - Schedule of Contract Liabilities (Parenthetical) (Detail)
$ in Thousands
 12 Months Ended
Feb. 03, 2024
USD ($)
Revenue from Contract with Customer [Abstract]  
Revenue recognized related to the contract liability $ 3,931
v3.25.1
Revenues - Additional Information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Revenue from Contract with Customer [Abstract]      
Revenue recognized related to gift card redemptions and breakage $ 10,800 $ 11,100 $ 10,500
Upfront payment 500    
Signing bonus     100
Unredeemed gift card liability $ 7,003 $ 7,005 $ 7,100
v3.25.1
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Prepaid Expense and Other Assets, Current [Abstract]    
Prepaid rent $ 2,260 $ 1,921
Prepaid catalog costs 1,912 1,769
Prepaid store supplies 2,278 1,969
Prepaid insurance 1,360 1,299
Prepaid software project costs 1,894 883
Prepaid software maintenance costs 3,202 2,322
Returns reserve asset 2,732 2,681
Income tax receivable 281 1,779
Other prepaid expenses 3,585 2,492
Other current assets [1] 787 541
Total prepaid expenses and other current assets $ 20,291 $ 17,656
[1] Other current assets include restricted cash of $0.4 million which is used solely for funding employee healthcare costs.
v3.25.1
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Parenthetical) (Details) - USD ($)
$ in Millions
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Prepaid Expense and Other Assets, Current [Abstract]      
Restricted cash $ 0.4 $ 0.4 $ 0.4
v3.25.1
Goodwill and Other Intangible Assets - Additional Information (Detail)
 12 Months Ended
Feb. 01, 2025
USD ($)
Feb. 03, 2024
USD ($)
Store
Jan. 28, 2023
USD ($)
Goodwill And Other Intangible Assets [Line Items]      
Goodwill $ 59,697,000 $ 59,697,000  
Accumulated goodwill impairment losses 137,300,000    
Impairment of goodwill 0 0  
Impairment of intangible assets $ 0 $ 0  
Quantitative analysis test 3 years    
Number of reporting units | Store   2  
Cash flow assumption period for analysis   5 years  
Weighted average fair value of goodwill and intangible assets   20.00%  
Royalty rate to estimate available returns   2.00%  
Amortization expense for intangible assets $ 5,200,000 $ 6,900,000 $ 7,500,000
v3.25.1
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Detail) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]    
Definite-lived Intangible Assets, Accumulated Amortization $ 104,565 $ 99,334
Definite-lived Intangible Assets, Accumulated Impairment 26,720 26,720
Definite-lived Intangible Assets, Carrying Amount 61,015 66,246
Total Intangible Assets, Gross 192,300 192,300
Trade Name [Member]    
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]    
Indefinite-lived, Gross 58,100 58,100
Indefinite-lived, Accumulated Impairment 24,100 24,100
Indefinite-lived, Carrying Amount $ 34,000 $ 34,000
Customer Relationships [Member]    
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]    
Useful Life 13 years 2 months 12 days 13 years 2 months 12 days
Definite-lived Intangible Assets, Gross $ 134,200 $ 134,200
Definite-lived Intangible Assets, Accumulated Amortization 104,565 99,334
Definite-lived Intangible Assets, Accumulated Impairment 2,620 2,620
Definite-lived Intangible Assets, Carrying Amount $ 27,015 $ 32,246
v3.25.1
Goodwill and Other Intangible Assets - Summary of Estimated Useful Lives of Intangible Assets (Detail) - Customer Lists [Member]
 12 Months Ended
Feb. 01, 2025
Finite Lived Intangible Assets [Line Items]  
Amortization Method Pattern of economic benefit
Minimum [Member]  
Finite Lived Intangible Assets [Line Items]  
Estimated Useful Life 9 years
Maximum [Member]  
Finite Lived Intangible Assets [Line Items]  
Estimated Useful Life 16 years
v3.25.1
Goodwill and Other Intangible Assets - Summary of Estimated Amortization Expense (Detail)
$ in Thousands
Feb. 01, 2025
USD ($)
Fiscal Year Estimated Amortization Expense  
2025 $ 4,693
2026 4,556
2027 4,418
2028 4,246
2029 4,109
Thereafter 4,993
Total $ 27,015
v3.25.1
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross $ 234,952 $ 226,943
Accumulated depreciation (187,949) (176,546)
Property and equipment, excluding construction in progress 47,003 50,397
Construction in progress 8,322 3,721
Property and equipment, net 55,325 54,118
Leasehold Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross 115,546 108,741
Furniture, Fixtures and Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross 49,495 48,276
Computer Hardware and Software [Member]    
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross $ 69,911 $ 69,926
v3.25.1
Property and Equipment - Additional Information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Property, Plant and Equipment [Line Items]      
Capitalized software, subject to amortization on cost basis, included in property and equipment $ 55,800 $ 54,600  
Capitalized computer software, accumulated amortization 45,600 41,300  
Internal use software costs capitalized 3,500 8,900  
Impairment of long-lived assets 772 189 $ 1,413
Interest cost capitalized in connection with construction in progress 400 600  
Leasehold Improvements [Member]      
Property, Plant and Equipment [Line Items]      
Impairment of long-lived assets 500 200  
Leasehold Improvements and Furniture and Fixtures [Member]      
Property, Plant and Equipment [Line Items]      
Impairment of long-lived assets     800
Selling, General and Administrative Expenses [Member]      
Property, Plant and Equipment [Line Items]      
Total depreciation expense $ 16,100 $ 16,000 $ 18,200
v3.25.1
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Jan. 29, 2022
Payables and Accruals [Abstract]        
Accrued payroll and benefits $ 9,725 $ 11,288    
Accrued returns reserve 7,494 7,724 $ 6,702 $ 11,003
Gift cards redeemable 7,003 7,005    
Accrued professional fees 2,309 1,629    
Accrued corporate expenses 1,458 2,158    
Accrued retail expenses 1,382 2,746    
Taxes, other than income taxes 2,635 2,709    
Accrued occupancy 1,118 1,285    
Self-insured group health insurance reserves 765 0    
Other accrued employee costs 2,044 1,557    
Other 4,546 4,182    
Total accrued expenses and other current liabilities $ 40,479 $ 42,283    
v3.25.1
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Parenthetical) (Detail)
$ in Millions
Feb. 01, 2025
USD ($)
Payables and Accruals [Abstract]  
Liability classified as share-based payment $ 0.4
v3.25.1
Accrued Expenses and Other Current Liabilities - Schedule of Changes in Accrued Returns Reserve (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Payables and Accruals [Abstract]      
Accrued returns reserve, Beginning of Period $ 7,724 $ 6,702 $ 11,003
Accrued returns reserve, Charged to Expenses 154,599 161,217 144,474
Accrued returns reserve, Deductions (154,829) (160,195) (148,775)
Accrued returns reserve, End of Period $ 7,494 $ 7,724 $ 6,702
v3.25.1
Accrued Expenses and Other Current Liabilities - Schedule of Changes in Accrued Self Insurance Reserve (Detail)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
USD ($)
Payables and Accruals [Abstract]  
Accrued self-insurance reserve, Beginning of Period $ 0
Accrued self-insurance reserve, Charged to Expenses 1,307
Accrued self-insurance reserve, Deductions (542)
Accrued self-insurance reserve, End of Period $ 765
v3.25.1
Debt - Components of Outstanding Long term debt (Detail) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Debt Instrument [Line Items]    
Original Issue Discount   $ (9,367)
Outstanding Principal Balance, Current portion (including Excess Cash Flow payment)   (35,353)
Balance Sheet, Current portion (including Excess Cash Flow payment)   (35,353)
Outstanding Principal Balance, Net long-term debt   133,085
Capitalized Fees & Expenses, Net long-term debt   (3,123)
Balance Sheet, Net long-term debt   120,595
Secured Debt [Member] | Term Loan Due 2028 [Member]    
Debt Instrument [Line Items]    
Outstanding Principal Balance   168,438
Original Issue Discount $ (3,652) (9,367)
Capitalized Fees & Expenses   (3,123)
Balance Sheet   $ 155,948
Outstanding Principal Balance, Net long-term debt 74,288  
Capitalized Fees & Expenses, Net long-term debt (1,217)  
Balance Sheet, Net long-term debt $ 69,419  
v3.25.1
Debt - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Long-Term Debt, Unclassified [Abstract]      
Interest expense $ 14.1 $ 23.8 $ 17.7
Debt Issuance cost $ 1.6 $ 2.8 $ 3.1
v3.25.1
Debt - Term Loan Credit Agreement (Details) - USD ($)
 6 Months Ended 12 Months Ended
Jun. 21, 2024
May 10, 2024
Apr. 05, 2023
Aug. 03, 2024
Feb. 01, 2025
Feb. 03, 2024
Feb. 01, 2024
Debt Instrument [Line Items]              
Unamortized discount and fees           $ 9,367,000  
Interest payable   $ 1,600,000          
Loss on extinguishment of debt         $ 8,570,000    
Term Loan Credit Agreement [Member]              
Debt Instrument [Line Items]              
Principal amount of term loan     $ 175,000,000   $ 74,300,000    
Debt instrument, periodic payment maturity date     May 08, 2028   May 08, 2028    
Unamortized discount and fees         $ 4,900,000    
Debt instrument, additional basis spread rate     7.00%        
Third-party fees related to legal, consulting, agent and other fees     $ 3,700,000        
Third party fees deferred and presented as direct reduction from carrying amount of long-term debt           $ 3,100,000  
Percentage of net proceeds of any incurrence of debt excluding certain permitted debt issuances     100.00%        
Percentage net cash proceeds of certain asset sales or insurance proceeds     100.00%        
Excess cash flow payment   26,600,000     11,800,000   $ 26.6
Repayments of debt $ 27,200,000 58,200,000   $ 94,200,000      
Debt instrument, premium paid   $ 2,600,000          
Percentage of aggregate principle amount   3.00% 3.00%        
Loss on extinguishment of debt         8.6    
Accelerated amortization of discount and fees         6,000,000    
Prepayment premium         $ 2,600,000    
Term Loan Credit Agreement [Member] | Minimum [Member]              
Debt Instrument [Line Items]              
Percentage annual payment     25.00%        
Term Loan Credit Agreement [Member] | Maximum [Member]              
Debt Instrument [Line Items]              
Percentage annual payment     75.00%        
Term Loan Credit Agreement [Member] | SOFR [Member]              
Debt Instrument [Line Items]              
Debt instrument, basis spread rate     8.00%        
Debt instrument, floor rate     1.00%        
v3.25.1
Debt - Asset-Based Revolving Credit Agreement (Detail) - USD ($)
 12 Months Ended 105 Months Ended
May 10, 2023
Apr. 15, 2022
May 08, 2015
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Feb. 03, 2024
Dec. 01, 2023
Debt Instrument [Line Items]                
Maturity date decription       This amendment extended the maturity date of the ABL Credit Agreement from May 8, 2024 to May 10, 2028 (or 180 days prior to the maturity date of the Company’s Term Loan Credit Agreement if the maturity date of such Term Loan Facility has not been extended to a date that is at least 180 days after the maturity date of the ABL Credit Agreement).        
Interest expense       $ 15,701,000 $ 25,699,000 $ 17,174,000    
Debt Issuance cost       $ 1,600,000 2,800,000 $ 3,100,000    
ABL Facility [Member]                
Debt Instrument [Line Items]                
Debt instrument term     5 years          
Total availability related to the facility     $ 40,000,000.0          
Debt instrument, initial maturity date May 08, 2024 May 08, 2023 May 08, 2020          
Debt instrument extended maturity date May 10, 2028 May 08, 2024 May 08, 2023          
In transit inventory reserve amount               $ 500,000,000
Credit facility, interest rate description       Interest on each Term SOFR loan is payable on the last day of each interest period and no more than quarterly, and interest on each Base Rate loan is payable in arrears on the last business day of April, July, October and January. For both Term SOFR and Base Rate loans, interest is payable periodically upon repayment, conversion or maturity, with interest periods ranging between 30 to 180 days at the election of the Company, or 12 months with the consent of all lenders.        
Credit facility commitment fee, each calendar quarter historical excess availability is greater than 50%             0.375%  
Credit facility commitment fee, each calendar quarter historical excess availability is less than or equal 50%             0.25%  
Credit facility commitment fee, minimum each calendar quarter historical excess availability             50.00%  
Credit facility commitment fee, maximum each calendar quarter historical excess availability             50.00%  
Credit Facility drawn or outstanding       $ 0 0   $ 0  
Credit Facility available borrowing capacity       $ 35,700,000 $ 34,200,000   $ 34,200,000  
Credit facility default interest surcharge     2.00%          
ABL Facility [Member] | Minimum [Member]                
Debt Instrument [Line Items]                
Excess liability on increase in reserve               $ 5,000,000
Coverage ratio       1        
ABL Facility [Member] | SOFR [Member]                
Debt Instrument [Line Items]                
Debt instrument, basis spread rate       1.00%        
ABL Facility [Member] | SOFR [Member] | Minimum [Member]                
Debt Instrument [Line Items]                
Debt instrument, basis spread rate       2.25%        
ABL Facility [Member] | SOFR [Member] | Maximum [Member]                
Debt Instrument [Line Items]                
Debt instrument, basis spread rate       2.50%        
ABL Facility [Member] | Federal Funds Effective Rate [Member]                
Debt Instrument [Line Items]                
Debt instrument, basis spread rate       0.50%        
ABL Facility [Member] | Base Rate [Member] | Minimum [Member]                
Debt Instrument [Line Items]                
Debt instrument, basis spread rate       1.25%        
ABL Facility [Member] | Base Rate [Member] | Maximum [Member]                
Debt Instrument [Line Items]                
Debt instrument, basis spread rate       1.50%        
v3.25.1
Debt - Letters of Credit (Detail) - USD ($)
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Debt Instrument [Line Items]    
Credit facility maximum borrowing capacity $ 15,000,000.0  
Letter of Credit [Member]    
Debt Instrument [Line Items]    
Credit Facility drawn or outstanding $ 4,300,000 $ 5,800,000
Credit facility initial term 1 year  
Letters of credit automatically annually renewal period 1 year  
v3.25.1
Debt - Payments of Long-term Debt Obligations Due by Period (Details) - Term Loan Credit Agreement [Member] - USD ($)
$ in Millions
 12 Months Ended
Apr. 05, 2023
Feb. 01, 2025
Debt Instrument [Line Items]    
Principal amount of term loan $ 175.0 $ 74.3
Debt instrument, periodic payment maturity date May 08, 2028 May 08, 2028
v3.25.1
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Carrying Value [Member]    
Financial instruments not carried at fair value:    
Total financial instruments not carried at fair value $ 69,419 $ 155,948
Carrying Value [Member] | Debt [Member]    
Financial instruments not carried at fair value:    
Total financial instruments not carried at fair value 69,419 155,948
Level 2 [Member]    
Financial instruments not carried at fair value:    
Total financial instruments not carried at fair value 73,968 161,871
Level 2 [Member] | Debt [Member]    
Financial instruments not carried at fair value:    
Total financial instruments not carried at fair value $ 73,968 $ 161,871
v3.25.1
Commitments and Contingencies - Additional Information (Detail)
 12 Months Ended
Feb. 01, 2025
Supplier
Commitments And Contingencies [Line Items]  
Other commitments, description The Company enters into other cancelable and noncancelable commitments. Typically, these commitments are for less than one year in duration and are principally for the procurement of inventory. Preliminary commitments with the Company’s merchandise vendors are made approximately six months in advance of the planned receipt date.
Supplier One [Member]  
Commitments And Contingencies [Line Items]  
Number of suppliers 1
Supplier Concentration Risk [Member] | Supplier One [Member] | Purchases [Member]  
Commitments And Contingencies [Line Items]  
Concentration risk, percentage 11.00%
v3.25.1
Segment Reporting - Additional Information (Details)
 12 Months Ended
Feb. 01, 2025
Segment
Customer
Segment Reporting [Abstract]  
Number of operating segments 2
Number of reportable segments 1
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration] srt:ChiefExecutiveOfficerMember
Segment Reporting, CODM, Profit (Loss) Measure, How Used, Description To assess the performance of the Company, the CODM primarily uses net income to analyze shopping behaviors and allocate resources effectively to enhance sales and margins.
Number of customers with more than 10% of revenues | Customer 0
v3.25.1
Segment Reporting - Schedule of Extract of Financial Information that Regularly Provided to CODM (Details) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Segment Reporting [Abstract]      
Net sales $ 610,857 $ 608,043 $ 618,528
Costs of goods sold (exclusive of depreciation and amortization) 181,001 177,261 193,218
Selling expenses 188,815 186,209 182,163
Marketing expenses 52,690 51,639 51,389
General and administrative expenses 82,090 80,696 82,319
Other segment items 66,778 76,037 67,264
Net income and total comprehensive income $ 39,483 $ 36,201 $ 42,175
v3.25.1
Operating Leases - Additional Information (Detail) - USD ($)
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Leases [Line Items]      
Lessee, operating lease, option to extend Some retail leases include one or more options to renew, with renewal terms that can extend the lease term from one to fifteen years. The Company’s distribution center has renewal terms that can extend the lease term up to twenty years.    
Lessee, operating lease, existence of option to extend true    
Tenant improvement incentive liability $ 200,000 $ 300,000  
Impairment of long-lived assets 772,000 189,000 $ 1,413,000
Common area maintenance expense 12,200,000 13,200,000 13,100,000
Operating leases, cash paid for amounts included in the measurement of operating lease liabilities 43,200,000 45,100,000 41,500,000
Right-of-Use Asset [Member]      
Leases [Line Items]      
Impairment of long-lived assets $ 300,000 $ 0 $ 600,000
Minimum [Member] | Retail Stores [Member]      
Leases [Line Items]      
Lessee, operating lease, option to extend lease term 1 year    
Maximum [Member] | Retail Stores [Member]      
Leases [Line Items]      
Lessee, operating lease, option to extend lease term 15 years    
Maximum [Member] | Distribution Center [Member]      
Leases [Line Items]      
Lessee, operating lease, option to extend lease term 20 years    
v3.25.1
Operating Leases - Components of Lease Expense (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Leases [Line Items]      
Total lease cost $ 43,541 $ 42,191 $ 41,719
Selling, General and Administrative Expenses [Member]      
Leases [Line Items]      
Operating lease cost 39,866 39,102 38,713
Variable lease cost $ 3,675 $ 3,089 $ 3,006
v3.25.1
Operating Leases - Schedule of Lease Terms and Discount Rate (Detail)
Feb. 01, 2025
Leases [Abstract]  
Weighted-average remaining lease term (in years), Operating leases 5 years
Weighted-average discount rate, Operating leases 6.80%
v3.25.1
Operating Leases - Schedule of Maturities of Lease Liabilities (Detail)
$ in Thousands
Feb. 01, 2025
USD ($)
 [1]
Leases [Abstract]  
2025 $ 38,538
2026 39,613
2027 27,928
2028 21,212
2029 15,139
Thereafter 24,394
Subtotal 166,824
Less: Imputed interest 27,424
Present value of lease liabilities $ 139,400
[1] There were no operating leases with legally binding minimum lease payments for leases signed but for which the Company has not taken possession.
v3.25.1
Operating Leases - Schedule of Maturities of Lease Liabilities (Parenthetical) (Detail)
$ in Millions
 12 Months Ended
Feb. 01, 2025
USD ($)
Leases [Abstract]  
Minimum operating lease payments for leases signed but not taken possession $ 0
v3.25.1
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Current      
U.S. Federal $ 12,668 $ 9,148 $ 14,562
State and local 3,408 3,108 2,582
Total current 16,076 12,256 17,144
Deferred tax (benefit) expense      
U.S. Federal (1,502) 1,971 (985)
State and local (76) (1,063) 340
Total deferred tax (benefit) expense (1,578) 908 (645)
Total income tax provision $ 14,498 $ 13,164 $ 16,499
v3.25.1
Income Taxes - Additional Information (Detail) - USD ($)
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Jan. 29, 2022
Operating Loss Carryforwards [Line Items]        
U.S. Federal corporate income tax rate 21.00% 21.00% 21.00%  
Unrecognized Tax Benefits $ 127,000 $ 127,000 $ 425,000 $ 399,000
Unrecognized tax benefits, income tax penalties and interest accrued 0      
Federal [Member]        
Operating Loss Carryforwards [Line Items]        
Net operating loss carryforwards 0      
Tax credit carryforwards 0      
State [Member]        
Operating Loss Carryforwards [Line Items]        
Net operating loss carryforwards 300,000      
Tax credit carryforwards $ 100,000      
v3.25.1
Income Taxes - Schedule of Reconciliation of Statutory Federal Income Tax Rate (Detail)
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Income Tax Disclosure [Abstract]      
Federal statutory income tax rate 21.00% 21.00% 21.00%
State income taxes, net of federal tax effect 4.90% 6.00% 6.10%
Disallowed interest   1.80%  
Disallowed officer compensation 2.50% 2.50% 2.10%
Valuation allowance 0.00% (2.70%) (2.20%)
Equity-based compensation expense (1.50%) (1.60%) (0.30%)
Charitable contributions (0.20%) (0.20%) (0.20%)
Tax return to provision adjustments 0.00% 0.10% 1.50%
Other 0.20% (0.20%) 0.10%
Effective tax rate 26.90% 26.70% 28.10%
v3.25.1
Income Taxes - Components of Deferred Income Tax Assets and (Liabilities) (Detail) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Deferred tax assets    
Accrued expenses $ 4,286 $ 3,981
State net operating loss carryforward 320 1,367
Start-up costs 294 351
Original issue discount 1,741  
Lease liabilities 35,346 35,643
Total deferred tax assets, gross 41,987 41,342
Deferred tax liabilities    
Inventory (750) (714)
Lease assets (28,893) (27,883)
Fixed assets (5,523) (6,394)
Intangible assets (15,628) (16,823)
Prepaid expenses (582) (495)
Total deferred tax liabilities (51,376) (52,309)
Net deferred tax liabilities $ (9,389) $ (10,967)
v3.25.1
Income Taxes - Summary of Changes in Unrecognized Income Tax Benefits (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Income Tax Disclosure [Abstract]      
Balance at the beginning of the period $ 127 $ 425 $ 399
(Decreases) Increases for tax positions related to prior periods 0 (298) 26
Balance at the end of the period $ 127 $ 127 $ 425
v3.25.1
Shareholders' Equity - (Additional Information) (Details) - USD ($)
 12 Months Ended
Mar. 11, 2025
Dec. 06, 2024
Jun. 12, 2024
Feb. 01, 2025
Feb. 03, 2024
Class of Stock [Line Items]          
Net proceeds from equity offering       $ 29,450,000  
Cash dividend declared per share       $ 0.21  
Cash dividends       $ 2,900,000  
Dividend equivalent units relating to employee share-based payment awards       100,000  
Share repurchase program, period   2 years      
Share repurchased price       $ 523,000  
Subsequent Event [Member]          
Class of Stock [Line Items]          
Cash dividend declared per share $ 0.08        
Share Repurchase Program          
Class of Stock [Line Items]          
Shares repurchased during period (in shares)       19,831 0
Share repurchased price       $ 500,000  
Share repurchase program, remaining authorized amount       $ 24,500,000  
Common Stock [Member] | Over-Allotment Option [Member] | Underwriting Agreement [Member]          
Class of Stock [Line Items]          
Sale of stock, number of shares issued     1,000,000    
Sale of stock, price per share     $ 31    
Proceeds from issuance or sale of stock     $ 31,000,000    
Net proceeds from equity offering     29,500,000    
Underwriting discount and commissions     1,500,000    
Third party expenses related to equity offering     $ 800,000    
Jefferies LLC, William Blair Company, L.L.C., And TD Securities (USA) LLC | Common Stock [Member] | Over-Allotment Option [Member] | Underwriting Agreement [Member]          
Class of Stock [Line Items]          
Sale of stock, number of shares issued     300,000    
TowerBrook Capital Partners, LP | Common Stock [Member] | Over-Allotment Option [Member] | Underwriting Agreement [Member]          
Class of Stock [Line Items]          
Sale of stock, number of shares issued     1,300,000    
Proceeds from issuance or sale of stock     $ 0    
Maximum [Member]          
Class of Stock [Line Items]          
Share repurchase program, authorized amount   $ 25,000,000      
v3.25.1
Net Income (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Common Share Attributable to Common Shareholders (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Numerator      
Net income $ 39,483 $ 36,201 $ 42,175
Denominator      
Weighted average number of common shares outstanding 14,956,165 10,561,652 10,124,962
Assumed exercise of warrants 0 3,581,475 3,810,441
Weighted average common shares, basic 14,956,165 14,143,127 13,935,403
Dilutive effect of share-based awards 180,668 261,343 349,632
Weighted average common shares, diluted 15,136,833 14,404,470 14,285,035
Net income per common share, basic $ 2.64 $ 2.56 $ 3.03
Net income per common share, diluted $ 2.61 $ 2.51 $ 2.95
v3.25.1
Net Income (Loss) Per Share - Additional Information (Detail) - shares
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Jan. 29, 2022
Antidilutive equity awards excluded from the computation of diluted earnings per share   98,338 57,914 106,137
Common Stock [Member]        
Issuance of common stock 1,000,000      
Exercise of warrants, shares 3,572,664 254,627    
Warrant [Member]        
Warrant exercised 3,573,707      
v3.25.1
Share-Based Payment - Additional Information (Detail)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 09, 2024
shares
Jun. 29, 2023
$ / shares
shares
Feb. 01, 2025
USD ($)
Trading
$ / shares
shares
Feb. 03, 2024
USD ($)
$ / shares
shares
Jan. 28, 2023
USD ($)
shares
Jan. 29, 2022
Feb. 03, 2018
shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Common stock, par value | $ / shares     $ 0.01 $ 0.01      
Share based compensation arrangement by share based payment award description     The 2024 Elm Street Award vests every two months in three equal installments as Elm Street provides its services over the six-month term and upon Elm Street successfully completing certain performance milestones. The 2024 Elm Street Award expires three years from the date of grant if unexercised.        
Elm Street [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Share based compensation arrangement by share based payment award description     The 2024 Elm Street Award vests every two months in three equal installments as Elm Street provides its services over the six-month term and upon Elm Street successfully completing certain performance milestones. The 2024 Elm Street Award expires three years from the date of grant if unexercised.        
Selling, General and Administrative Expenses [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Equity-based compensation expense | $     $ 6.9 $ 3.8 $ 3.5    
Omnibus Equity Incentive Plan [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Additional shares of common stock issued   750,000          
Common stock, par value | $ / shares   $ 0.01          
Shares available for grant     706,888        
Omnibus Equity Incentive Plan [Member] | Maximum [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Common stock reserved for issuance   2,043,453          
Restricted Stock Units [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Restricted stock units installment terms     vest in one to three equal annual installments, beginning one year from the date of grant vest in one to three equal annual installments, beginning one year from the date of grant   vest in one to three equal annual installments, beginning one year from the date of grant  
Vesting period percentage     12.50%        
Total unrecognized compensation expense | $     $ 6.9        
Total unrecognized compensation expense to be recognized, weighted average service period     1 year 8 months 12 days        
Total fair value of restricted stock vested | $     $ 3.3 $ 3.6 $ 3.0    
Restricted Stock Units [Member] | Tranche One [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Vesting period percentage     50.00%        
Restricted Stock Units [Member] | Share-Based Payment Arrangement, Tranche Two [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Vesting period percentage     50.00%        
Performance Stock Units [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Number of trading days | Trading     30        
Performance period     3 years        
Total unrecognized compensation expense | $     $ 4.3        
Total unrecognized compensation expense to be recognized, weighted average service period     1 year 8 months 12 days        
Performance Stock Units [Member] | Maximum [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Vesting period percentage     200.00%        
Performance Stock Units [Member] | Minimum [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Vesting period percentage     0.00%        
Performance-Based Stock Options [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Weighted-Average Fair Value, Options outstanding | $ / shares     $ 6.84        
Weighted-Average Exercise Price, Options outstanding | $ / shares     $ 26.63        
Weighted-Average Remaining Contractual Terms, Options outstanding     2 years 10 months 24 days        
Performance-Based Stock Options [Member] | Omnibus Equity Incentive Plan [Member] | Elm Street [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Number of units, awarded 100,000            
Number of shares outstanding and unvested     100,000        
Performance-Based Stock Options [Member] | Omnibus Equity Incentive Plan [Member] | Selling, General and Administrative Expenses [Member] | Elm Street [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Equity-based compensation expense | $     $ 0.4        
Employee Stock Option | Omnibus Equity Incentive Plan [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Vesting period     4 years        
Total unrecognized compensation expense | $     $ 0.0        
Number of units, awarded     0        
Number of units, forfeited     10,909        
Number of units, exercised     0        
Weighted-Average Grant Date Fair Value, Options outstanding | $ / shares     $ 30.17        
Weighted-Average Grant Date Fair Value, Options exercisable | $ / shares     30.17        
Weighted-Average Exercise Price, Options outstanding | $ / shares     59.85        
Weighted-Average Exercise Price, Options exercisable | $ / shares     $ 59.85        
Weighted-Average Remaining Contractual Terms, Options outstanding     2 years 3 months 18 days        
Weighted-Average Remaining Contractual Terms, Options exercisable     2 years 3 months 18 days        
Employee Stock Option | Omnibus Equity Incentive Plan [Member] | Maximum [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Award expiration period     10 years        
Purchase Plan [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Common shares authorized and available for future issuance     2,344 2,344 2,344    
Purchase Plan [Member] | Maximum [Member]              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Common shares authorized and available for future issuance             40,000
v3.25.1
Share-Based Payment - Summary of Fair Value Assumptions (Detail)
 12 Months Ended
Feb. 01, 2025
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Expected Dividend Yield 1.00%
Performance Stock Units [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Risk Free Interest Rate 4.20%
Expected Volatility, Minimum 47.10%
Expected Volatility, Maximum 47.90%
Performance Stock Units [Member] | Minimum [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Expected Term 1 year 6 months 29 days
Performance Stock Units [Member] | Maximum [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Expected Term 1 year 8 months 26 days
Performance-Based Stock Options [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Risk Free Interest Rate 4.20%
Expected Dividend Yield 1.00%
Expected Volatility, Minimum 46.00%
Expected Volatility, Maximum 46.80%
Performance-Based Stock Options [Member] | Minimum [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Expected Term 1 year 5 months 8 days
Performance-Based Stock Options [Member] | Maximum [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Expected Term 1 year 7 months 9 days
v3.25.1
Share-Based Payment - Summary of RSUs and PSUs Award Activity (Detail)
 12 Months Ended
Feb. 01, 2025
$ / shares
shares
Restricted Stock Units [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Number of Units, Beginning Balance | shares 458,299
Number of Units, Granted | shares 272,683
Number of Units, Vested | shares (240,185)
Number of Units, Forfeited | shares (10,909)
Number of Units, Ending Balance | shares 479,888
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares $ 14.15
Weighted Average Grant Date Fair Value, Granted | $ / shares 31.88
Weighted Average Grant Date Fair Value, Vested | $ / shares 13.63
Weighted Average Grant Date Fair Value, Forfeited | $ / shares 32.55
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares $ 23.66
Performance Stock Units [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Number of Units, Beginning Balance | shares 62,709
Number of Units, Granted | shares 105,034
Number of Units, Ending Balance | shares 167,743
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares $ 30.47
Weighted Average Grant Date Fair Value, Granted | $ / shares 40.21
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares $ 36.56
v3.25.1
Related Party Transactions - Additional Information (Detail) - USD ($)
 12 Months Ended
Dec. 09, 2024
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
May 10, 2024
Related Party Transaction [Line Items]          
Interest expense - related party   $ 15,701,000 $ 25,699,000 $ 17,174,000  
Accrued interest expense         $ 1,600,000
TowerBrook Capital Partners L.P [Member]          
Related Party Transaction [Line Items]          
Interest expense - related party   0 $ 1,100,000 $ 4,100,000  
Legal and professional fees expense   100,000      
Elm Street [Member] | Consulting Agreement [Member]          
Related Party Transaction [Line Items]          
Cash consideration $ 2,000,000        
Additional shares of common stock issued 100,000        
Upfront fee   $ 200,000      
Consulting agreement termination date   Jun. 09, 2025      
Monthly installment payments   $ 300,000      
v3.25.1
Subsequent Events - Additional Information (Detail) - $ / shares
 12 Months Ended
Mar. 11, 2025
Mar. 10, 2025
Feb. 01, 2025
Subsequent Event [Line Items]      
Cash dividends declared per common share     $ 0.21
Subsequent Event [Member]      
Subsequent Event [Line Items]      
Cash dividends declared per common share $ 0.08    
Subsequent Event [Member] | Consulting Agreement [Member] | Elm Street [Member]      
Subsequent Event [Line Items]      
Number of units, awarded 33,334 100,000  
Subsequent Event [Member] | O 2025 Q1 Dividends [Member]      
Subsequent Event [Line Items]      
Dividend payable date Apr. 16, 2025    
Dividend payable date of record Apr. 02, 2025