TORRID HOLDINGS INC., 10-K filed on 4/1/2025
Annual Report
v3.25.1
Cover Page - USD ($)
$ in Millions
12 Months Ended
Feb. 01, 2025
Mar. 27, 2025
Aug. 03, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Feb. 01, 2025    
Current Fiscal Year End Date --02-01    
Document Transition Report false    
Entity File Number 001-40571    
Entity Registrant Name TORRID HOLDINGS INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 84-3517567    
Entity Address, Address Line One 18501 East San Jose Avenue    
Entity Address, City or Town City of Industry    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 91748    
City Area Code 626    
Local Phone Number 667-1002    
Title of 12(b) Security Common stock, par value $0.01 per share    
Trading Symbol CURV    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business true    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Common Stock, Shares Outstanding   104,928,245  
Entity Public Float     $ 110
Documents Incorporated by Reference
Information required in response to Part III of Form 10-K (Items 10, 11, 12, 13 and 14) is hereby incorporated by reference to portions of the registrant’s definitive proxy statement for the 2025 Annual Meeting of Stockholders (the "2024 Proxy Statement"), to be filed with the Securities and Exchange Commission ("SEC") no later than 120 days after the end of the registrant’s fiscal year ended February 1, 2025.
   
Entity Central Index Key 0001792781    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.25.1
Audit Information
12 Months Ended
Feb. 01, 2025
Audit Information [Abstract]  
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Los Angeles, California
Auditor Firm ID 238
v3.25.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Current assets:    
Cash and cash equivalents $ 48,523 $ 11,735
Restricted cash 399 399
Inventory 148,493 142,199
Prepaid expenses and other current assets 24,507 22,229
Prepaid income taxes 4,244 2,561
Total current assets 226,166 179,123
Property and equipment, net 77,669 103,516
Operating lease right-of-use assets 140,651 162,444
Deposits and other noncurrent assets 18,935 14,783
Deferred tax assets 16,620 8,681
Intangible asset 8,400 8,400
Total assets 488,441 476,947
Current liabilities:    
Accounts payable 72,378 46,183
Accrued and other current liabilities 125,743 107,750
Operating lease liabilities 40,505 42,760
Borrowings under credit facility 0 7,270
Current portion of term loan 16,144 16,144
Due to related parties 8,362 9,329
Income taxes payable 0 2,671
Total current liabilities 263,132 232,107
Noncurrent operating lease liabilities 134,481 155,825
Term loan 272,409 288,553
Deferred compensation 3,913 5,474
Other noncurrent liabilities 5,595 6,705
Total liabilities 679,530 688,664
Commitments and contingencies (Note 16)
Stockholders' deficit:    
Preferred shares: $0.01 par value; 5,000,000 shares authorized; zero shares issued and outstanding at February 1, 2025 and February 3, 2024 0 0
Common shares: $0.01 par value; 1,000,000,000 shares authorized; 104,859,266 shares issued and outstanding at February 1, 2025; 104,204,554 shares issued and outstanding at February 3, 2024 1,049 1,043
Additional paid-in capital 140,029 135,140
Accumulated deficit (331,269) (347,587)
Accumulated other comprehensive loss (898) (313)
Total stockholders' deficit (191,089) (211,717)
Total liabilities and stockholders' deficit $ 488,441 $ 476,947
Preferred stock, outstanding (in shares) 0 0
Preferred stock, issued (in shares) 0 0
Preferred stock, par value (in USD per share) $ 0.01 $ 0.01
Preferred stock, authorized (in shares) 5,000,000 5,000,000
v3.25.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Feb. 01, 2025
Feb. 03, 2024
Statement of Financial Position [Abstract]    
Common shares, par value (in USD per share) $ 0.01 $ 0.01
Common shares, authorized (in shares) 1,000,000,000 1,000,000,000
Common shares, issued (in shares) 104,859,266 104,204,554
Common shares, outstanding (in shares) 104,859,266 104,204,554
v3.25.1
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Income Statement [Abstract]      
Net sales $ 1,103,737 $ 1,151,945 $ 1,288,144
Cost of goods sold 690,266 745,967 828,605
Gross profit 413,471 405,978 459,539
Selling, general and administrative expenses 302,032 293,331 297,973
Marketing expenses 54,231 55,499 59,941
Income from operations 57,208 57,148 101,625
Interest expense 35,633 39,203 29,736
Interest income, net of other (income) expense (28) (90) 207
Income before provision for income taxes 21,603 18,035 71,682
Provision for income taxes 5,285 6,416 21,473
Net income $ 16,318 $ 11,619 $ 50,209
Net earnings per share:      
Basic (in USD per share) $ 0.16 $ 0.11 $ 0.48
Diluted (in USD per share) $ 0.15 $ 0.11 $ 0.48
Weighted average number of shares:      
Basic (in shares) 104,564 103,990 104,342
Diluted (in shares) 105,684 104,400 104,489
Other comprehensive loss:      
Foreign currency translation adjustment $ (585) $ (52) $ (337)
Total other comprehensive loss (585) (52) (337)
Comprehensive income $ 15,733 $ 11,567 $ 49,872
v3.25.1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($)
$ in Thousands
Total
Common Shares
Additional Paid-In Capital
Accumulated Deficit
Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Jan. 29, 2022   107,858,000      
Beginning balance at Jan. 29, 2022 $ (258,319) $ 1,078 $ 118,286 $ (377,759) $ 76
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 50,209     50,209  
Issuance of common shares and withholding tax payments related to vesting of restricted stock awards and restricted stock units (in shares)   184,000      
Issuance of common shares and withholding tax payments related to vesting of restricted stock awards and restricted stock units $ (668) $ 2 (670)    
Issuance of common shares related to exercise of non qualified stock options (in shares) 0        
Issuance of common stock related to employee stock purchase plan (in shares)   198,000      
Issuance of common stock related to employee stock purchase plan $ 611 $ 2 609    
Share-based compensation $ 9,980   9,980    
Repurchases and retirement of common stock (in shares) (4,464,367) (4,465,000)      
Repurchases and retirement of common stock $ (31,700) $ (44)   (31,656)  
Other comprehensive loss (337)       (337)
Ending balance (in shares) at Jan. 28, 2023   103,775,000      
Ending balance at Jan. 28, 2023 (230,224) $ 1,038 128,205 (359,206) (261)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 11,619     11,619  
Issuance of common shares and withholding tax payments related to vesting of restricted stock awards and restricted stock units (in shares)   253,000      
Issuance of common shares and withholding tax payments related to vesting of restricted stock awards and restricted stock units $ (306) $ 3 (309)    
Issuance of common shares related to exercise of non qualified stock options (in shares) 0        
Issuance of common stock related to employee stock purchase plan (in shares)   177,000      
Issuance of common stock related to employee stock purchase plan $ 413 $ 2 411    
Share-based compensation $ 6,833   6,833    
Repurchases and retirement of common stock (in shares) 0        
Repurchases and retirement of common stock $ 0        
Other comprehensive loss $ (52)       (52)
Ending balance (in shares) at Feb. 03, 2024 104,204,554 104,205,000      
Ending balance at Feb. 03, 2024 $ (211,717) $ 1,043 135,140 (347,587) (313)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 16,318     16,318  
Issuance of common shares and withholding tax payments related to vesting of restricted stock awards and restricted stock units (in shares)   424,000      
Issuance of common shares and withholding tax payments related to vesting of restricted stock awards and restricted stock units $ (656) $ 4 (660)    
Issuance of common shares related to exercise of non qualified stock options (in shares) 133,000 133,000      
Issuance of common shares related to exercise of non qualified stock options $ 467 $ 1 466    
Issuance of common stock related to employee stock purchase plan (in shares)   98,000      
Issuance of common stock related to employee stock purchase plan 459 $ 1 458    
Share-based compensation $ 4,625   4,625    
Repurchases and retirement of common stock (in shares) 0        
Repurchases and retirement of common stock $ 0        
Other comprehensive loss $ (585)       (585)
Ending balance (in shares) at Feb. 01, 2025 104,859,266 104,860,000      
Ending balance at Feb. 01, 2025 $ (191,089) $ 1,049 $ 140,029 $ (331,269) $ (898)
v3.25.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
OPERATING ACTIVITIES      
Net income $ 16,318 $ 11,619 $ 50,209
Adjustments to reconcile net income to net cash provided by operating activities:      
Write down of inventory 1,779 4,577 2,297
Operating right-of-use assets amortization 40,574 41,366 41,839
Depreciation and other amortization 37,239 38,002 37,592
Share-based compensation 7,634 8,042 9,980
Deferred taxes (7,939) (5,670) 1,863
Other (1,092) (2,436) (1,209)
Changes in operating assets and liabilities:      
Inventory (7,615) 33,182 (12,028)
Prepaid expenses and other current assets (2,278) (2,179) (5,364)
Prepaid income taxes (1,683) (480) 4,264
Deposits and other noncurrent assets (4,314) (6,296) (1,712)
Accounts payable 26,999 (30,293) (1,241)
Accrued and other current liabilities 18,148 (1,721) (29,659)
Operating lease liabilities (40,352) (43,532) (42,912)
Other noncurrent liabilities (829) (1,897) 3,900
Deferred compensation (1,561) 1,228 (2,627)
Due to related parties (967) (3,412) (1,881)
Income taxes payable (2,671) 2,671 0
Net cash provided by operating activities 77,390 42,771 53,311
INVESTING ACTIVITIES      
Purchases of property and equipment (14,392) (26,002) (23,369)
Net cash used in investing activities (14,392) (26,002) (23,369)
FINANCING ACTIVITIES      
Proceeds from revolving credit facility 62,780 592,775 832,635
Payments on revolving credit facility (70,050) (593,885) (824,255)
Principal payments on the Amended Term Loan Credit Agreement (17,500) (17,500) (21,875)
Proceeds from issuances under share-based compensation plans 1,044 399 746
Withholding tax payments related to vesting of restricted stock units and awards and exercise of non qualified stock options (774) (306) (668)
Repurchases and retirement of common stock 0 0 (31,700)
Net cash used in financing activities (24,500) (18,517) (45,117)
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash (1,710) (53) (177)
Increase (decrease) in cash, cash equivalents and restricted cash 36,788 (1,801) (15,352)
Cash, cash equivalents and restricted cash at beginning of period 12,134 13,935 29,287
Cash, cash equivalents and restricted cash at end of period 48,922 12,134 13,935
SUPPLEMENTAL INFORMATION      
Cash paid during the period for interest related to the revolving credit facility and term loan 35,077 34,195 29,564
Cash paid during the period for income taxes 17,765 11,154 15,601
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES      
Property and equipment purchases included in accounts payable and accrued liabilities $ 1,367 $ 4,524 $ 3,959
v3.25.1
Basis of Presentation and Description of the Business
12 Months Ended
Feb. 01, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation and Description of the Business Basis of Presentation and Description of the Business
Corporate Structure
Torrid Holdings Inc. is a Delaware corporation formed on October 29, 2019 and capitalized on February 20, 2020. Sycamore Partners Management, L.P. ("Sycamore") owns a majority of the voting power of Torrid Holdings Inc.'s outstanding common stock. Torrid Parent Inc. is a Delaware corporation formed on June 4, 2019 and is a wholly owned subsidiary of Torrid Holdings Inc. Torrid Intermediate LLC, formerly known as Torrid Inc., is a Delaware limited liability company formed on June 18, 2019 and a wholly owned subsidiary of Torrid Parent Inc. Torrid LLC is a wholly owned subsidiary of Torrid Intermediate LLC. Substantially all of Torrid Holdings Inc.'s financial position, operations and cash flows are generated through its wholly owned indirect subsidiary, Torrid LLC.
Throughout these financial statements, the terms "Torrid," "we," "us," "our," the "Company" and similar references refer to Torrid Holdings Inc. and its consolidated subsidiaries.
Fiscal Year
Our fiscal year ends on the Saturday nearest to January 31 and each fiscal year is generally comprised of four 13-week quarters (although in years with 53 weeks, the fourth quarter is comprised of 14 weeks). Fiscal years 2024 and 2022 were 52-week years and fiscal year 2023 was a 53-week year. Fiscal years are identified according to the calendar year in which they begin. For example, references to "fiscal year 2024" or similar references refer to the fiscal year ended February 1, 2025.
Description of Business
We are a direct-to-consumer brand of apparel, intimates and accessories in North America aimed at fashionable women who are curvy and wear sizes 10 to 30. We generate revenues primarily through our e-Commerce platform www.torrid.com and our stores in the United States of America, Puerto Rico and Canada.
v3.25.1
Summary of Significant Accounting Policies
12 Months Ended
Feb. 01, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Change in Accounting Principle
In the fourth quarter of fiscal year 2022, we made a voluntary change in our accounting policy regarding the classification of royalties, profit-sharing and marketing and promotional funds ("PLCC Funds") we receive pursuant to the Credit Card Agreement (as defined below). Historically, we recorded PLCC Funds as a reduction to selling, general and administrative expenses in the consolidated statements of operations and comprehensive income. Under the new policy, we record PLCC Funds in net sales in the consolidated statements of operations and comprehensive income. This reclassification does not have any impact on income from operations, income before provision for income taxes, net income or earnings per share and there was no cumulative effect to stockholders’ deficit or net assets. This reclassification has been retrospectively applied to all prior periods presented.
The recognition of PLCC Funds in net sales is preferable because it will enhance the comparability of our financial statements with those of many of our industry peers and provide greater transparency into performance metrics relevant to our industry by showing the gross impact of the funds received as net sales instead of as a reduction to selling, general and administrative expenses.
The impact of this change in accounting principle is reflected in the tables below (in thousands):
Fiscal Year Ended January 29, 2022
As Previously ReportedChange in
Accounting
Principle
As Adjusted
Net sales$1,278,794 $18,477 $1,297,271 
Cost of goods sold759,826 — 759,826 
Gross profit518,968 18,477 537,445 
Selling, general and administrative expenses420,932 18,477 439,409 
Marketing expenses52,654 — 52,654 
Income from operations$45,382 $— $45,382 
Principles of Consolidation
The accompanying audited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The consolidated financial statements include our accounts and those of our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Segment Reporting
We derive revenues primarily from the sale of apparel, intimates and accessories through our e-Commerce platform and our store locations, and have determined that we have one reportable segment at the consolidated level. The accounting policies of the segment are the same as described within this summary of significant accounting policies. The single segment was identified based on how the Chief Operating Decision Maker ("CODM"), who we have determined to be our Chief Executive Officer, manages and evaluates performance and allocates resources based on consolidated net income. As the CODM is not provided any asset information, we do not disclose the measure of segment assets. Net sales related to our operations in Canada and Puerto Rico during fiscal years 2024, 2023 and 2022 were not material, and therefore, are not reported separately from domestic net sales.
The following table details the segment information regularly provided to the CODM (in thousands):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
Net sales$1,103,737 $1,151,945 $1,288,144 
Less:
Cost of goods sold (A)
655,529 711,685 795,411 
Selling, general and administrative expenses (B)
285,204 279,358 282,935 
Depreciation and amortization (C)
35,721 36,484 36,074 
Shared-based compensation7,634 8,042 9,980 
Marketing expenses54,231 55,499 59,941 
Interest expense35,633 39,203 29,736 
Provision for income taxes5,285 6,416 21,473 
Interest income, net of other (income) expense(28)(90)207 
Other expenses (D)
8,210 3,729 2,178 
Net income$16,318 $11,619 $50,209 
   
(A)Cost of goods sold as provided to the CODM exclude depreciation and amortization and share-based compensation, which are presented separately.
(B)Selling, general and administrative expenses as provided to the CODM exclude depreciation and amortization, share-based compensation and other expenses, which are presented separately.
(C)Depreciation and amortization excludes amortization of debt issuance costs and original issue discount that are reflected in interest expense.
(D)Other expenses include severance costs for certain key management positions, certain transaction and litigation fees (including certain settlement costs), and the reimbursement of certain management expenses, primarily for travel, incurred by Sycamore on our behalf, which are not considered to be part of our core business.
Use of Estimates
We are required to make certain estimates and assumptions in order to prepare consolidated financial statements in conformity with GAAP. Such estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities in the consolidated financial statements and accompanying notes. We believe the estimates and assumptions most critical to the preparation of our consolidated financial statements include those made in connection with revenue recognition, including accounting for estimated merchandise returns and loyalty program expenses; estimating the value of inventory; determining operating lease liabilities; and estimating share-based compensation expense. The estimation process required to prepare our consolidated financial statements requires assumptions to be made about future events and conditions, and as such, is inherently subjective and uncertain. Our actual results could differ materially from those estimates.
Concentration Risks
We consider all highly liquid investments with maturities of less than three months when purchased to be cash equivalents. All credit and debit card receivable balances are also classified as cash and cash equivalents. As of the end of fiscal years 2024 and 2023, the amounts due from third party financial institutions for these transactions classified as cash and cash equivalents totaled $7.9 million and $8.9 million, respectively. Cash and cash equivalents used primarily for working capital purposes are maintained with various major third party financial institutions in amounts which are in excess of the Federal Deposit Insurance Corporation ("FDIC") insurance limits. We are potentially exposed to a concentration of credit risk when cash and cash equivalent deposits in these financial institutions are in excess of FDIC limits. We consider the credit risk associated with these financial instruments to be minimal as cash and cash equivalents are held by financial institutions with high credit ratings and we have not historically sustained any credit losses associated with our cash and cash equivalents balances.
In addition, MGF Sourcing US, LLC, an entity indirectly controlled by affiliates of Sycamore, accounted for approximately 8%, 10% and 15% of total net purchases in fiscal years 2024, 2023 and 2022, respectively. One other supplier accounted for approximately 12% of total net purchases in fiscal year 2023.
Fair Value of Financial Instruments
We carry certain of our assets and liabilities 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. We consider carrying amounts of cash equivalents, accounts payable and accrued and other current liabilities to approximate fair value because of the short maturity of these financial instruments. See "Note 19—Fair Value Measurements" for more details about how we determine the fair value of our financial instruments.
Inventory
Inventory is valued at the lower of moving average cost or net realizable value. We make certain assumptions regarding net realizable value in order to assess whether our inventory is recorded properly at the lower of cost or net realizable value. These assumptions are based on historical average selling price experience, current selling price information and estimated future selling price information. Physical inventory counts are conducted during the year to determine actual inventory on hand and shrinkage. We accrue our estimated inventory shrinkage for the period between the last physical store count and current balance sheet date.
Property and Equipment
Property and equipment are recorded at cost less accumulated depreciation. Major repairs and improvements are capitalized, while routine maintenance and repairs are expensed as incurred. The gross carrying amounts of property and equipment 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. Application and development costs associated with internally developed software such as salaries of employees and payments made to third parties and consultants working on the software development are capitalized. Subsequent additions, modifications or upgrades to internal-use software are capitalized only to the extent that they constitute major enhancements. Capitalized internal-use software costs are amortized using the straight-line method over their estimated useful lives, which are generally three years.
Depreciation expense is calculated using the straight-line method over the following estimated useful lives:
Leasehold improvements  
shorter of the 3- to 10-year estimated useful life or the respective lease term
Furniture, fixtures and equipment  
2 to 10 years
Software and licenses  
3 to 7 years
The carrying value of property and equipment is subject to assessment for potential impairment whenever events or changes in circumstances indicate that an asset’s carrying value may not be recoverable, as further described below.
Definite-Lived Assets
We assess the carrying value of definite-lived assets for potential impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. We group and evaluate definite-lived assets for impairment at the individual store level, which is the lowest level at which individual cash flows can be identified. Factors we consider important that could trigger an impairment review of our stores or e-Commerce operations include significant underperformance relative to historical or projected future operating results, a significant change in the manner of the use of the asset or a significant negative industry or economic trend. If we determine the carrying value of definite-lived assets may not be recoverable based upon the existence of one or more of the aforementioned factors, we test for the recoverability of the carrying value of our definite-lived assets by comparing the carrying value of the asset groups to our estimated undiscounted future net cash flows attributable to the asset groups. If the carrying value of the definite-lived assets is greater than the related undiscounted future net cash flows, the definite-lived assets are measured for impairment. We measure the impairment by comparing the difference between the definite-lived asset’s carrying value and the discounted future net cash flows attributable to the definite-lived asset, which represent its fair value. We calculate the discounted future net cash flows of a store by netting future estimated sales of each store against estimated cost of goods sold, store occupancy costs and other store operating expenses such as payroll, supplies, repairs and maintenance and credit/debit card fees. Changes in these assumptions may cause the fair value to be significantly impacted. In the event future performance is lower than forecasted results, future cash flows may be lower than expected, which could result in future impairment charges. While we believe that recently opened stores will provide sufficient cash flow, material changes in financial performance could result in future store impairment charges.
Indefinite-Lived Intangible Assets
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 the carrying value may not be recoverable. Judgments regarding indicators of potential impairment are based on market conditions and operational performance of the business.
At the end of the third quarter of each fiscal year, we perform an impairment analysis of indefinite-lived intangible assets. We assess our indefinite-lived intangible asset for impairment using a qualitative analysis to determine whether it is more likely than not that the fair value of the asset is less than its carrying value. If it is determined that it is more likely than not that the fair value of the asset is less than its carrying amount or if a qualitative assessment is not performed, then we would perform the quantitative analysis to determine the fair value of the asset. If we conclude, based on our assessment, that the asset’s fair value is less than its carrying value, then an impairment charge is recorded in the amount of the excess.
Implementation Costs Incurred in Cloud Computing Arrangements that are Service Contracts
Our cloud computing arrangements that are service contracts primarily consist of arrangements with third party vendors for our internal use of their software applications that they host. We defer implementation costs incurred in relation to such arrangements, including costs for software application coding, configuration, integration and customization, while associated process reengineering, training and maintenance costs are expensed. Subsequent implementation costs are deferred only to the extent that they constitute major enhancements. The short-term portion of deferred costs are included in prepaid expenses and other current assets in the consolidated balance sheets, while the long-term portion of deferred costs are included in deposits and other noncurrent assets. Amortized implementation costs incurred in cloud computing arrangements that are service contracts are recognized in selling, general and administrative expenses, or cost of goods sold in the case of amortized implementation costs associated with the distribution center, in the consolidated statements of operations and comprehensive income using the straight-line method over one to seven years, which generally represents the noncancellable terms of the cloud computing arrangements, plus any optional renewal periods that we are reasonably certain to exercise. Deferred implementation costs are subject to assessment for potential impairment whenever events or changes in circumstances indicate that the carrying values may not be recoverable.
Loyalty Program
We operate our loyalty program, Torrid Rewards, in all our stores and on www.torrid.com. Under this program, customers accumulate points based on purchase activity and qualifying non-purchase activity and upon reaching a certain point level, customers can earn awards that may only be redeemed for merchandise. Unredeemed points typically expire after 13 months without additional purchase and qualifying non-purchase activity and unredeemed awards typically expire 45 days after issuance. We use historical redemption rates to estimate the value of future award redemptions and we recognize the estimated value of these future awards as a reduction of revenue in the consolidated statements of operations and comprehensive income in the period the points are earned by the customer. As of the end of fiscal years 2024 and 2023, we had $10.9 million and $12.5 million, respectively, in accrued loyalty program included in accrued and other current liabilities in the consolidated balance sheets. We recorded $1.6 million, $0.9 million, and $0.1 million as a benefit to net sales in fiscal years 2024, 2023, and 2022, respectively. Future updates to the estimated liability may result in changes to net sales.
Self-Insurance
We are self-insured for certain losses related to medical and workers' compensation claims although we maintain stop loss coverage with third party insurers to limit our total liability exposure. In general, our self-insurance reserves are recorded on an undiscounted basis. The estimate of our self-insurance liability involves uncertainty since we must use judgment to estimate the ultimate cost that will be incurred to settle reported claims and unreported claims for incidents incurred but not reported as of the balance sheet date. When estimating our self-insurance liability, we consider a number of factors, which include historical claim experience and valuations provided by independent third party actuaries. While the ultimate amount of claims incurred is dependent on future developments, we believe recorded reserves are adequate to cover the future payment of claims. However, it is possible that recorded reserves may not be adequate to cover the future payment of claims. Adjustments, if any, to estimates recorded resulting from ultimate claim payments will be reflected in our consolidated statements of operations and comprehensive income in the periods in which such adjustments are known.
Comprehensive Income
Comprehensive income includes all changes in equity during a period except those that resulted from investments by, or distributions to, stockholders. Other comprehensive income refers to revenues, expenses, gains and losses that, under GAAP, are included in comprehensive income, but excluded from net income as these amounts are recorded directly as an adjustment to stockholders' deficit. Components of our comprehensive income include net income and foreign currency translation adjustments. Foreign currency translation adjustments in fiscal year 2024 were $0.6 million and were not material in fiscal years 2023 and 2022.
Foreign Currency Translation
The functional currency for our wholly owned foreign subsidiaries included in these consolidated financial statements that are domiciled outside of the United States is the applicable local currency. Assets and liabilities of our foreign subsidiaries are translated into United States dollars at the exchange rate in effect on the balance sheet date. Revenues and expenses are translated at the average rate in effect during the period. Unrealized translation gains and losses are recorded as a cumulative translation adjustment, which is included in the consolidated statements of stockholders' deficit as a component of accumulated other comprehensive income. Adjustments that arise from exchange rate changes on transactions denominated in a currency other than the local currency are included in selling, general and administrative expenses in the consolidated statements of operations and comprehensive income as incurred.
Share Repurchases
We have elected to retire shares repurchased to date. Shares retired become part of the pool of authorized but unissued shares. We have elected to record the purchase price of the retired shares in excess of par value, including transaction costs, directly as an increase in accumulated deficit.
Revenue Recognition
We recognize revenue when our performance obligations under the terms of a contract or an implied arrangement with a customer are satisfied, which is when the merchandise is transferred to the customer and the customer obtains control of it. The amount of revenue we recognize reflects the total consideration we expect to receive for the merchandise, which is the transaction price. For arrangements that contain multiple performance obligations, we allocate the transaction price to each performance obligation on a relative standalone selling price basis.
At our retail store locations, we satisfy our performance obligation and recognize revenue at the point in time when a customer takes possession of the merchandise and tenders payment at the point-of-sale register. For e-Commerce sales shipped to a customer from our distribution center, or from a retail store location (ship from store), we satisfy our performance obligation and recognize revenue upon shipment, which is the point in time the customer obtains control of the merchandise after payment has been tendered. Income we receive from customers for shipping and handling is recognized as a component of revenue upon shipment of merchandise to the customer. We satisfy our performance obligation and recognize revenue from e-Commerce sales shipped to a retail store location from our distribution center, or fulfilled from merchandise already located at a retail store location (buy-online-pickup-in-store), at the point in time when the customer retrieves the merchandise from within the retail store location or at a retail store curbside.
If a customer earns loyalty program points in connection with the retail store or e-Commerce sales transactions described above, then we have a remaining performance obligation and cannot recognize all the revenue. A portion of the revenue is allocated to the loyalty program points earned during the transaction. We satisfy our performance obligation and recognize revenue allocated to these loyalty program points and the resulting awards at the point in time when the awards are redeemed for merchandise, when we determine that they will not be redeemed, or when the awards and points expire.
We satisfy our performance obligation and recognize revenue from gift cards and store merchandise credits at the point in time when the customer presents the gift cards and store merchandise credits for redemption. Gift card breakage is income recognized due to the non-redemption of a portion of gift cards sold by us for which a liability was recorded in prior periods. We recognize estimated gift card breakage over time as a component of net sales in proportion to the pattern of rights exercised by the customer as reflected in actual gift card redemption patterns over the period. Our estimated gift card breakage rate is approximately 4%. While customer redemption patterns result in estimated gift card breakage, changes in our customers’ behavior could impact the amount that ultimately is unused and could affect the amount recognized as a component of net sales. During fiscal years 2024, 2023 and 2022, we recognized $0.8 million, $0.9 million and $1.0 million, respectively, of estimated gift card breakage as a component of net sales.
We are required to estimate certain amounts included in a contract or an implied arrangement with a customer which add variability to the transaction price. Under certain conditions, we are obligated to accept customer returns for most of our merchandise. Sales returns reduce the revenue we expect to receive for merchandise and therefore add variability to the transaction price. Based on historical return pattern experience, we reasonably estimate the amount of merchandise expected to be returned and exclude it from revenue. Similarly, losses we bear arising from uncollectible customer credit card payments are recorded as a reduction of revenue as they reduce the revenue we expect to receive for the merchandise.
We recognize a contract liability when we receive consideration from a customer before our performance obligations under the terms of a contract or an implied arrangement with the customer are satisfied. Consequently, we consider our remaining performance obligations to be representative of our contract liability, most of which is not expected to last for more than one year and has therefore been classified as current. Our contract liability balances increase as gift cards and store merchandise credits are purchased and received by the customer; and as loyalty points are earned based on purchase activity and qualifying non-purchase activity. Contract liability balances decrease as gift cards and store merchandise credits are redeemed for merchandise or when we determine that they will not be redeemed; as loyalty points expire or when we determine that they will not be converted into a loyalty award; and as loyalty awards are redeemed for merchandise or expire.
Sales taxes collected from customers and remitted directly to governmental authorities are not considered revenue and are excluded from the transaction price.
We have an agreement with a third party to provide customers with private label credit cards ("Credit Card Agreement"). Each private label credit card ("PLCC") bears the logo of the Torrid brand and can only be used at our store locations and on www.torrid.com. A third party financing company is the sole owner of the accounts issued under the PLCC program and absorbs the losses associated with non-payment by the PLCC holders and a portion of any fraudulent usage of the accounts. Pursuant to the Credit Card Agreement, we are eligible to receive royalties, profit-sharing and marketing and promotional funds from the third party financing company ("PLCC Funds") based on usage of the PLCCs. These PLCC Funds are recorded as a component of net sales in the consolidated statements of operations and comprehensive income.
Cost of Goods Sold
Cost of goods sold includes: merchandise costs; freight; inventory shrinkage; payroll expenses associated with the merchandising and distribution departments; distribution center expenses, including rent, common area maintenance ("CAM") charges, real estate taxes, depreciation and amortization, utilities, supplies and maintenance; and store occupancy expenses, including rents, CAM charges, heating, ventilation and air conditioning ("HVAC") charges, real estate taxes and depreciation.
Vendor Allowances
We receive certain allowances from our vendors primarily related to damaged merchandise, markdowns and pricing. Allowances received from vendors related to damaged merchandise and pricing are reflected as a reduction of inventory in the period they are received and allocated to cost of goods sold during the period in which the items are sold. Markdown allowances received from vendors are reflected as reductions to cost of goods sold in the period they are received if the goods have been sold or marked down, or as a reduction of inventory if the goods have not yet been sold. During fiscal years 2024, 2023 and 2022, we received vendor allowances of $2.5 million, $3.2 million and $3.8 million, respectively, substantially all of which were accounted for as a reduction of cost of goods sold.
Selling, General and Administrative Expenses
Selling, general and administrative expenses include: payroll expenses associated with stores and e-Commerce; store and e-Commerce operating expenses other than store occupancy; store pre-opening costs; credit card processing fees; share-based compensation; payroll; depreciation and amortization and other expenses associated with headquarters and administrative functions.
Marketing Expenses
Marketing expenses are expensed as incurred. Costs associated with communicating advertising that has been produced, such as television and webisodes, are recorded in prepaid expenses and other current assets in the consolidated balance sheets and are expensed the first time each advertising event takes place. Marketing expenses include photographic production, television, store and brand marketing, costs associated with special events such as model searches, and targeted online performance marketing costs such as retargeting, paid search/product listing advertising, and social media advertisements.
Store Pre-Opening Costs
Costs incurred in connection with the opening of new stores, store remodels or relocations are expensed as incurred. We incurred $0.8 million, $2.4 million and $1.2 million of pre-opening costs in fiscal years 2024, 2023 and 2022, respectively, which are recorded in selling, general and administrative expenses in the consolidated statements of operations and comprehensive income.
Shipping and Handling Costs
We classify shipping and handling costs in costs of goods sold in the consolidated statements of operations and comprehensive income. We account for shipping and handling activities that occur after the customer has obtained control of merchandise as a fulfillment cost rather than an additional promised service.
Leases
We consider an agreement to be or contain a lease if it conveys us as the lessee with the right to control the use of an identified property, plant and equipment asset for a period of time in exchange for consideration. Based on these criteria, we as the lessee have operating lease agreements with lessors for our retail stores, distribution center and headquarter office space; and vehicles and equipment; under primarily non-cancelable leases with terms ranging from approximately one to 17 years.
Certain of our operating lease agreements contain one or more options to extend the leases at our sole discretion. However, the periods covered by the options to extend the leases of our retail stores, vehicles and equipment are not recognized as part of the associated right of use ("ROU") assets and lease liabilities, as we are not reasonably certain to exercise the options. The periods covered by the options to extend the leases of our distribution center and headquarter office space are recognized as part of the associated ROU assets and lease liabilities, as we are reasonably certain to exercise the options due to the significant effort and investment it would take to move out of these locations. Some of our operating lease agreements contain options to terminate the lease under certain conditions.
The retail space leases provide for rents based upon the greater of the minimum annual rental amounts or a percentage of annual store sales volume. Certain leases provide for increasing minimum annual rental amounts. We consider rents based upon a percentage of annual store sales volume, and other rent-related payments that generally vary because of changes in facts and circumstances (other than due to the passage of time), to be variable lease payments. Variable lease payments associated with retail space leases are recognized as occupancy costs within cost of goods sold in the consolidated statements of operations and comprehensive income in the period in which the obligation for those payments is incurred. We generally consider all other
lease payments to be fixed in nature and the sum of all the discounted remaining fixed payments in the lease terms make up the lease liabilities in our consolidated balance sheet (if the lease terms are longer than 12 months).
Our operating lease agreements do not contain any residual value guarantees or restrictive covenants, and we have not entered into any sublease agreements, lease agreements with related parties, or build-to-suit arrangements that may create significant rights and obligations for us.
We discount the fixed lease payments that make up the lease liabilities using an incremental borrowing rate ("IBR"), as the rates implicit in our leases are not readily determinable. The IBR is the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The determination of the IBR for each lease term incorporates various inputs and assumptions including our publicly available credit rating, credit spreads of other publicly traded debt issued by companies with a similar credit rating to ours and a risk-free interest rate. All inputs and assumptions and corresponding IBRs are highly subjective.
We choose not to separate non-lease components (such as CAM charges and HVAC charges), from lease components (such as fixed minimum rent payments), and instead account for each separate lease component and the non-lease components associated with that lease component as a single lease component. We do not apply ASU 2016-02, Leases, and all related guidance (ASC 842) requirements to leases that have lease terms of 12 months or less upon commencement, and instead recognize short-term lease payments, if applicable, in the consolidated statements of operations and comprehensive income on a straight-line basis over the lease term.
Income Taxes
We account for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting bases and tax bases of assets and liabilities and are measured using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax asset or liability is expected to be realized or settled. Deferred tax assets are reduced by valuation allowances if we believe it is more likely than not that some portion or the entire deferred tax asset will not be realized.
Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in tax rate is recognized through continuing operations in the period that includes the enactment date of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future.
We prescribe a recognition threshold and a measurement attribute for the consolidated financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. We include interest and penalties related to uncertain tax positions in income tax expense in the consolidated statements of operations and comprehensive income.
The amount of income taxes we pay may be subject to periodic audits by the Internal Revenue Service ("IRS") and other taxing authorities. These audits may challenge certain of our tax positions, such as the timing and amount of deductions and allocation of taxable income to various jurisdictions.
We recognize tax liabilities for our estimate of the potential outcome of any uncertain tax issue, which is subject to our assessment of the relevant risks, facts and circumstances existing at the time, and we adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense and the effective tax rate in the period in which the new information becomes available.
We continue to treat undistributed earnings of our foreign subsidiary as indefinitely reinvested according to our current operating plans and no deferred tax liability has been recorded for potential future taxes related to such earnings. According to current tax law, any future dividends paid from our foreign subsidiary will not be subject to income tax in the United States, except for withholding taxes and state taxes, which are not material.
Share-Based Compensation
On June 22, 2021, our Board of Directors (the "Board") adopted the Torrid Holdings Inc. 2021 Long-Term Incentive Plan (the "2021 LTIP"), for employees, consultants and directors. The 2021 LTIP provides for the grant of stock options, restricted stock and restricted stock units ("RSUs"), among other types of awards, all of which are accounted for in accordance with ASC 718, Compensation-Stock Compensation. We measure share-based compensation cost at the grant date based on the fair value of the award and recognize share-based compensation cost as expense over the vesting period. As share-based compensation expense recognized in the consolidated statements of operations is based on awards ultimately expected to vest, the amount of expense has been reduced for actual forfeitures as they occur.
Stock options are valued utilizing a Black-Scholes option pricing model ("OPM"). The OPM used to value the stock options incorporates various assumptions, including dividend yield, expected volatility, risk-free interest rate and expected term of the stock options. The expected volatility is estimated based on the historical volatility of a select peer group of similar publicly traded companies for a term that is consistent with the expected term of the stock options. The risk-free interest rates are based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected term of the stock options. The expected term of the stock options represents the estimated period of time until exercise and is calculated using the simplified method which deems the term to be the average of the time-to-vesting and the contractual life of the options. The grant date fair value of restricted stock and RSUs is based on the closing price per share of our common stock on the grant date. We recognize compensation expense for time-based awards on a straight-line basis and for performance-based awards on the graded-vesting method over the vesting period of the awards.
Restricted cash units ("RCUs") are awarded to certain employees, non-employee directors and consultants and represent the right to receive a cash payment at the end of a vesting period, subject to the employee's continued employment or service as a director or consultant. In general, RCUs vest in equal installments each year over four years. RCUs are cash-settled with the value of each vested RCU equal to the lower of the closing price per share of our common stock on the vesting date or a specified per share price cap. We determined that RCUs are in-substance liabilities accounted for as liability instruments in accordance with ASC 718, Compensation—Stock Compensation, due to this cash settlement feature. RCUs are remeasured based on the closing price per share of our common stock at the end of each reporting period.
Earnings Per Share
Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is applicable only in periods of net income and is computed by dividing net income by the weighted average number of common shares outstanding for the period and potentially dilutive common share equivalents outstanding for the period. Periods of net loss require the diluted computation to be the same as the basic computation, as all potentially dilutive securities would be anti-dilutive.
Employee Benefit Plan
On August 1, 2015, we adopted the Torrid 401(k) Plan ("401(k) Plan"). Effective November 1, 2024, we amended the 401(k) Plan to allow employees employed by us for one month and who are at least 21 years of age to participate. Prior to this amendment, all employees who had been employed by us for at least 200 hours and were at least 21 years of age were eligible to participate. Employees may contribute up to 80% of their eligible compensation to the 401(k) Plan, subject to a statutorily prescribed annual limit. We may at our discretion contribute certain amounts to eligible employees' accounts. Effective January 1, 2025, we enhanced our contributions to 100% of the first 3%, and 50% of the next 2%, of participants' eligible contributions into their 401(k) Plan accounts. Prior to this enhancement, we contributed 50% of the first 4% of participants' eligible contributions into their 401(k) Plan accounts. During fiscal years 2024, 2023 and 2022, we contributed $1.0 million, $0.8 million and $0.8 million, respectively, to eligible employees' 401(k) Plan accounts.
Deferred Compensation Plan
On August 1, 2015, we established the Torrid Management Deferred Compensation Plan ("Deferred Compensation Plan") for the purpose of providing highly compensated employees a program to meet their financial planning needs. The Deferred Compensation Plan provided participants with the opportunity to defer up to 80% of their base salary and up to 100% of their annual earned bonus, all of which, together with the associated investment returns, were 100% vested from the outset. The Deferred Compensation Plan was designed to be exempt from most provisions of the Employee Retirement Security Act of 1974, as amended, and we contributed certain amounts to eligible employees' accounts at our discretion. In December of 2024, our Board approved freezing employee participation, employee deferrals, discretionary company credits and matching contributions, effective December 31, 2024. We did not have any assets of the Deferred Compensation Plan and all existing
deferrals and associated earnings held in the plan continue to operate under the plan's rules. Prior to January 1, 2025, to the extent participants were ineligible to receive contributions from participation in our 401(k) Plan, we contributed 50% of the first 4% of participants' eligible contributions into their Deferred Compensation Plan accounts. As of February 1, 2025 and February 3, 2024, the associated liabilities were $5.7 million and $5.6 million, respectively, included in our consolidated balance sheets. As of February 1, 2025, $1.8 million of the $5.7 million Deferred Compensation Plan liabilities were included in accrued and other current liabilities in our consolidated balance sheet. As of February 3, 2024, $0.1 million of the $5.6 million Deferred Compensation Plan liabilities were included in accrued and other current liabilities in our consolidated balance sheet. All liabilities associated with the Deferred Compensation Plan are our general unsecured obligations.
v3.25.1
Accounting Standards
12 Months Ended
Feb. 01, 2025
Accounting Policies [Abstract]  
Accounting Standards Accounting Standards
Recently Adopted Accounting Standards in Fiscal Year 2024
In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 affects reportable segment disclosure requirements, primarily by requiring enhanced disclosures about significant segment expenses that are regularly provided to the CODM on an interim and annual basis. We adopted this guidance for the fiscal year ended February 1, 2025 and accordingly updated our segment disclosure in "Note 2—Summary of Significant Accounting Policies." There was no impact on our results of operations, cash flows and financial condition as a result of adopting this guidance.
Accounting Standards Not Yet Adopted
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). The ASU includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. ASU 2023-09 will be effective for us for fiscal year ended February 1, 2026, with the option to early adopt at any time prior to the effective date and will require adoption on either a prospective or retrospective basis. We are currently evaluating the impact of the standard on our financial statements and disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statements Expenses (“ASU 2024-03”). The ASU is intended to improve disclosures about a public business entity's expenses, primarily through additional disaggregation of income statement expenses. ASU 2024-03 will be effective for the annual period beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027, with the option to early adopt at any time prior to the effective date and should be applied either prospectively to financial statements issued for reporting periods after the effective date or retrospectively to any or all prior periods presented in the financial statements. We are currently evaluating the impact of the standard on our financial statements and disclosures.
We have considered all other recent accounting pronouncements and have concluded that there are no other recent accounting pronouncements not yet adopted that are applicable to us, based on current information.
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 Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of the following (in thousands):
February 1, 2025February 3, 2024
Prepaid and other information technology expenses$12,946 $10,975 
PLCC Funds receivable2,810 2,759 
Prepaid advertising1,706 389 
Prepaid casualty insurance2,213 2,489 
Other4,832 5,617 
Prepaid expenses and other current assets$24,507 $22,229 
v3.25.1
Property and Equipment
12 Months Ended
Feb. 01, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment are summarized as follows (in thousands):
February 1, 2025February 3, 2024
Property and equipment, at cost
Leasehold improvements$187,792 $187,114 
Furniture, fixtures and equipment118,901 122,746 
Software and licenses15,099 14,809 
Construction-in-progress1,438 3,241 
323,230 327,910 
Less: Accumulated depreciation and amortization(245,561)(224,394)
Property and equipment, net$77,669 $103,516 
We recorded depreciation and amortization expense related to our property and equipment in the amounts of $35.7 million, $36.5 million and $36.1 million during fiscal years 2024, 2023 and 2022, respectively.
v3.25.1
Implementation Costs Incurred in Cloud Computing Arrangements that are Service Contracts
12 Months Ended
Feb. 01, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Implementation Costs Incurred in Cloud Computing Arrangements that are Service Contracts Implementation Costs Incurred in Cloud Computing Arrangements that are Service Contracts
We defer implementation costs incurred in cloud computing arrangements that are service contracts. The short-term portion of deferred implementation costs incurred in cloud computing arrangements that are service contracts are included in prepaid expenses and other current assets in the consolidated balance sheets, while the long-term portion of these deferred costs are included in deposits and other noncurrent assets.
Deferred implementation costs incurred in cloud computing arrangements that are service contracts are summarized as follows (in thousands):
February 1, 2025February 3, 2024
Internal use of third party hosted software, gross$42,208 $28,516 
Less: Accumulated amortization(18,229)(11,360)
Internal use of third party hosted software, net$23,979 $17,156 
During fiscal years 2024, 2023 and 2022, we amortized approximately $6.9 million, $4.6 million and $2.9 million, respectively, of implementation costs incurred in cloud computing arrangements that are service contracts.
v3.25.1
Intangible Assets
12 Months Ended
Feb. 01, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
Indefinite-lived intangible assets are summarized as follows (in thousands):
February 1, 2025February 3, 2024
GrossAccumulated
Amortization
Net Book
Value
GrossAccumulated
Amortization
Net Book
Value
Indefinite-lived intangible assets:
Trade name$8,400 $— $8,400 $8,400 $— $8,400 
Total$8,400 $— $8,400 $8,400 $— $8,400 
We performed our annual impairment assessment of our trade name at the end of the third quarter of fiscal year 2024. We performed a qualitative assessment and determined that it is not more likely than not that the fair value of our trade name is less than its carrying value, which indicated there was no impairment.
v3.25.1
Accrued and Other Current Liabilities
12 Months Ended
Feb. 01, 2025
Payables and Accruals [Abstract]  
Accrued and Other Current Liabilities Accrued and Other Current Liabilities
Accrued and other current liabilities consist of the following (in thousands):
February 1, 2025February 3, 2024
Accrued inventory-in-transit$35,177 $23,227 
Accrued payroll and related expenses25,313 13,780 
Accrued loyalty program10,887 12,526 
Gift cards13,676 12,974 
Accrued sales return allowance2,961 6,018 
Accrued freight5,092 5,470 
Accrued marketing3,120 3,862 
Accrued sales and use tax2,745 3,354 
Accrued lease costs2,817 3,306 
Accrued self-insurance liabilities2,926 3,313 
Accrued purchases of property and equipment768 3,121 
Deferred revenue2,777 1,949 
Term loan interest payable2,486 3,548 
Accrued legal4,668 993 
Other10,330 10,309 
Accrued and other current liabilities$125,743 $107,750 
v3.25.1
Leases
12 Months Ended
Feb. 01, 2025
Leases [Abstract]  
Leases Leases
Our lease costs reflected in the tables below include minimum base rents, CAM charges and HVAC charges. We recognize such lease costs in the applicable expense category in either cost of goods sold, or selling, general and administrative expenses in the consolidated statements of operations and comprehensive income.
Our lease costs consisted of the following (in thousands):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
Fixed operating lease cost$53,109 $54,446 $52,940 
Short-term lease cost129 143 186 
Variable lease cost19,821 19,147 17,951 
Total lease cost$73,059 $73,736 $71,077 
A maturity analysis of our operating lease liabilities, for lease terms that include periods covered by options to extend some of our leases that we are reasonably certain of being executed, for each of the next five years and thereafter, reconciled to our operating lease liabilities recognized in the consolidated balance sheet as of February 1, 2025, is as follows (in thousands):
Fiscal Year Ending
 
2025$52,367 
202642,925 
202731,018 
202823,086 
202917,540 
Thereafter62,189 
Total operating lease liabilities$229,125 
Less: Imputed interest(54,139)
Total operating lease liabilities$174,986 
Less: Current portion of operating lease liabilities(40,505)
Noncurrent operating lease liabilities$134,481 
Other supplementary information related to our leases is reflected in the table below (in thousands except lease term and discount rate data):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$60,475 $61,360 $58,050 
Right-of-use assets obtained in exchange for new operating lease liabilities$12,126 $25,822 $19,113 
Increase (decrease) in right-of-use assets resulting from operating lease modifications or remeasurements$8,373 $837 $(9,007)
Weighted average remaining lease term - operating leases7 years6 years6 years
Weighted average discount rate - operating leases%%%
v3.25.1
Revenue Recognition
12 Months Ended
Feb. 01, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
We recognize revenue when our performance obligations under the terms of a contract or an implied arrangement with a customer are satisfied, which is when the merchandise is transferred to the customer and the customer obtains control of it. The amount of revenue we recognize reflects the total consideration we expect to receive for the merchandise, which is the transaction price.
Our revenue, disaggregated by product category, consists of the following (in thousands):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
Apparel$989,239 $1,024,501 $1,119,336 
Non-apparel82,526 93,462 134,800 
Other31,972 33,982 34,008 
Total net sales$1,103,737 $1,151,945 $1,288,144 
Amounts within Apparel include revenues earned from the sale of tops, bottoms, dresses, intimates, sleep wear, swim wear and outerwear. Amounts within Non-apparel include revenues earned from the sale of accessories, footwear and beauty. Amounts within Other primarily represent PLCC Funds received. During fiscal years 2024, 2023 and 2022, e-Commerce penetration of total net sales was 61%, 59% and 61%, respectively.
Contract Liabilities
During fiscal year 2024, we recognized revenue of $10.7 million and $5.7 million related to our accrued loyalty program and gift cards, respectively, that existed at the beginning of fiscal year 2024. During fiscal year 2023, we recognized revenue of $10.2 million and $6.0 million related to our accrued loyalty program and gift cards, respectively, that existed at the beginning of fiscal year 2023.
v3.25.1
Related Party Transactions
12 Months Ended
Feb. 01, 2025
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
Services Agreements with Hot Topic
Hot Topic Inc. (“Hot Topic”) is an entity indirectly controlled by affiliates of Sycamore. On March 21, 2019, we entered into an amended and restated services agreement with Hot Topic, which was subsequently amended on August 1, 2019, April 30, 2023 and May 3, 2024 (“Amended and Restated Services Agreement”). Under the Amended and Restated Services Agreement, Hot Topic provides us (or causes applicable third parties to provide) real estate leasing and construction management services. We record payments made to Hot Topic under these service agreements in the applicable expense category in either cost of goods sold, or selling, general and administrative expenses.
During fiscal years 2024, 2023 and 2022, Hot Topic charged us $2.1 million, $2.0 million and $2.4 million, respectively, for various services under the applicable service agreements, all of which were recorded as components of selling, general and administrative expenses. As of February 1, 2025 and February 3, 2024, we owed $0.6 million and $0.2 million, respectively, to Hot Topic for these services which is included in due to related parties in our consolidated balance sheets.
On August 1, 2019, we entered into a services agreement ("Reverse Services Agreement") with Hot Topic, under which Torrid provided Hot Topic with certain information technology services. The term of the Reverse Services Agreement was three years, unless we or Hot Topic extended the agreement, or Hot Topic terminated the agreement. Torrid provided Hot Topic with the specified information technology services at no cost for the first three years of the Reverse Services Agreement, however Hot Topic bore certain capital and operating expenses that it incurred. Costs incurred in connection with providing the specified information technology services to Hot Topic were expensed as incurred in our consolidated statements of operations and comprehensive income. During fiscal year 2022, we incurred costs of $1.6 million in connection with providing these information technology services to Hot Topic. On July 31, 2022, we entered into a first amendment to the Reverse Services Agreement ("Amended Reverse Services Agreement") with Hot Topic, under which Torrid provided Hot Topic with certain information technology services for a fixed fee. The term of the Amended Reverse Services Agreement was two months while both parties negotiated a longer-term amendment to the Reverse Services Agreement with modified terms and conditions. On September 30, 2022, we entered into a second amendment to the Reverse Services Agreement ("Second Amended Reverse Services Agreement") with Hot Topic, under which Torrid provided Hot Topic with certain information technology services for a fixed fee. The term of the Second Amended Reverse Services Agreement was two months while both parties negotiated a longer-term amendment to the Reverse Services Agreement with modified terms and conditions. Effective December 1, 2022, we entered into a third amendment to the Reverse Services Agreement ("Third Amended Reverse Services Agreement") with Hot Topic, under which Torrid provided Hot Topic with certain information technology services for a fixed fee. The term of the Third Amended Reverse Services Agreement was 17 months unless we and Hot Topic mutually agreed to extend the agreement, or we or Hot Topic terminated the agreement (or certain services under the agreement), upon written notice. Effective January 1, 2024, we entered into a fourth amendment to the Reverse Services Agreement ("Fourth Amended Reverse Services Agreement") with Hot Topic, which amended the Third Amended Reverse Services Agreement solely to amend certain pricing information. The term of the Fourth Amended Reverse Services Agreement ended on May 4, 2024, unless we and Hot Topic mutually agreed to extend the agreement, or we or Hot Topic terminated the agreement (or certain services under the agreement), upon written notice. Effective May 5, 2024, we entered into a fifth amendment to the Reverse Services Agreement ("Fifth Amended Reverse Services Agreement") with Hot Topic, which amended the Fourth Amended Reverse Services Agreement solely to amend certain pricing information. The term of the Fifth Amended Reverse Services Agreement ends on October 25, 2025, unless it is terminated by us or Hot Topic or we mutually agree in writing to extend the term.
During fiscal years 2024, 2023 and 2022, we charged Hot Topic $0.6 million, $1.7 million and $1.0 million, respectively, for these services and as of February 1, 2025 and February 3, 2024, Hot Topic owed us $0.1 million for each of the fiscal years for these services.
Hot Topic incurs certain direct expenses on our behalf, such as payments to our non-merchandise vendors and each month, we pay Hot Topic for these pass-through expenses. As of February 1, 2025, the net amount we owed Hot Topic for these expenses was not material and as of February 3, 2024, the net amount we owed Hot Topic was $0.4 million, which is included in due to related parties in our consolidated balance sheets.
Sponsor Advisory Services Agreement
On May 1, 2015, we entered into an advisory services agreement with Sycamore, pursuant to which Sycamore agreed to provide strategic planning and other related services to us. We are obligated to reimburse Sycamore for its expenses incurred in connection with providing such advisory services to us. As of the end of fiscal years 2024 and 2023, there were no amounts due and during fiscal years 2024, 2023 and 2022, no amounts were paid under this agreement.
From time to time, we reimburse Sycamore for certain management expenses it pays on our behalf. As of February 1, 2025 and as of February 3, 2024, there were no amounts due. During fiscal years 2024, 2023 and 2022, the reimbursements we made to Sycamore for such expenses were not material.
Other Related Party Transactions
MGF Sourcing US, LLC, an entity indirectly controlled by affiliates of Sycamore, is one of our suppliers. During fiscal years 2024, 2023 and 2022, cost of goods sold included $38.7 million, $56.5 million and $70.0 million, respectively, related to the sale of merchandise purchased from this supplier. Purchases from this supplier accounted for approximately 8%, 10% and 15% of total net purchases in fiscal years 2024, 2023 and 2022, respectively. As of February 1, 2025 and February 3, 2024, the net amounts we owed MGF Sourcing US, LLC for these purchases were $7.9 million and $8.9 million, respectively. This liability is included in due to related parties in our consolidated balance sheets.
HU Merchandising, LLC, a subsidiary of Hot Topic, is one of our suppliers. During fiscal years 2024, 2023 and 2022, cost of goods sold included $0.2 million, $0.3 million and $0.5 million, respectively, related to the sale of merchandise
purchased from this supplier. As of February 1, 2025, there was no amount due and as of February 3, 2024, the amount due was not material.
Staples, Inc., an entity indirectly controlled by affiliates of Sycamore, is one of our suppliers. During fiscal years 2024, 2023 and 2022, purchases from this supplier were not material. As of February 1, 2025 and February 3, 2024, amounts due to this supplier were not material.
v3.25.1
Debt Financing Arrangements
12 Months Ended
Feb. 01, 2025
Debt Disclosure [Abstract]  
Debt Financing Arrangements Debt Financing Arrangements
Our debt financing arrangements consist of the following (in thousands):
February 1, 2025February 3, 2024
ABL Facility$— $7,270 
Term loan
Amended Term Loan Credit Agreement293,125 310,625 
Less: current portion of unamortized original issue discount and debt financing costs(1,356)(1,356)
Less: noncurrent portion of unamortized original issue discount and debt financing costs(3,216)(4,572)
Total term loan outstanding, net of unamortized original issue discount and debt financing costs288,553 304,697 
Less: current portion of term loan, net of unamortized original issue discount and debt financing costs(16,144)(16,144)
Total term loan, net of current portion and unamortized original issue discount and debt financing costs$272,409 $288,553 
Fixed mandatory principal repayments due on the outstanding term loan are as follows as of February 1, 2025 (in thousands):
Fiscal Year Ending
2025$17,500 
202617,500 
202717,500 
2028240,625 
$293,125 
Term Loan Credit Agreement
On June 14, 2021, we entered into a term loan credit agreement (the "Term Loan Credit Agreement") among Bank of America, N.A., as agent, and the lenders party thereto. On May 24, 2023, we entered into an amendment to the Term Loan Credit Agreement (the "Amended Term Loan Credit Agreement"). The Amended Term Loan Credit Agreement replaced the London Interbank Offered Rate ("LIBOR") interest rate benchmark with the Secured Overnight Financing Rate ("SOFR") benchmark. All other material terms of the Term Loan Credit Agreement remained substantially the same after giving effect to the Amended Term Loan Credit Agreement. In March 2020 and January 2021, the FASB issued ASUs 2020-04, Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04") and 2021-01, Reference Rate Reform (Topic 848): Scope ("ASU 2021-01"), respectively. ASU 2020-04 and ASU 2021-01 include practical expedients which provide entities the option to account for qualifying amendments as if the modification was not substantial in accordance with Accounting Standards Codification ("ASC") 470, Debt. We elected this option, accordingly, the Amended Term Loan Credit Agreement did not have a material impact on our consolidated financial statements.
The Term Loan Credit Agreement provides for term loans in an initial aggregate amount of $350.0 million ("Principal"), which is recorded net of an original issue discount ("OID") of $3.5 million and has a maturity date of June 14, 2028. In connection with the Term Loan Credit Agreement, we paid financing costs of approximately $6.0 million.
The $346.5 million proceeds of the Term Loan Credit Agreement, net of OID, were used to (i) repay and terminate the original term loan credit agreement; (ii) make a $131.7 million distribution to the direct and indirect holders of our equity interests; and (iii) pay for financing costs associated with the Term Loan Credit Agreement.
Loans made pursuant to the Amended Term Loan Credit Agreement bear interest at an annual rate equal to, at our option, either (a) a base rate determined by reference to the highest of (1) the prime rate quoted by The Wall Street Journal, (2) the federal funds effective rate plus 0.50% and (3) a SOFR rate for an interest period of one month, plus 1.00% (in each case, subject to a floor of 1.75%); or (b) at a SOFR rate for the interest period relevant to such borrowing (subject to a floor of 0.75%), in each case plus an applicable margin of 5.50% for SOFR borrowings and 4.50% for base rate borrowings.
If we elect the SOFR rate, interest is due and payable on the last day of each interest period, unless an interest period exceeds three months, then the respective dates that fall every three months after the beginning of the interest period shall also be interest payment dates. If we elect the Base rate loan, interest is due and payable the last day of each calendar quarter. The elected interest rate at the end of fiscal year 2024 was approximately 10%.
In addition to paying interest on the outstanding Principal under the Amended Term Loan Credit Agreement, we are required to make fixed mandatory repayments of the Principal on the last business day of each fiscal quarter until maturity commencing with the second full fiscal quarter following the closing date ("Repayment"). For each of the fiscal quarters until the maturity date and starting with the fourth fiscal quarter of 2021, Repayments represent 1.25% of the Principal, reduced as a result of the application of prior Prepayments, as defined below.
Under the Amended Term Loan Credit Agreement, we are also required to make variable mandatory prepayments of the Principal, under certain conditions as described below, approximately 102 days after the end of each fiscal year (each, a "Prepayment"). Prepayments, if applicable, commence at the end of fiscal year 2022 and represent between 0% and 50% (depending on our first lien net leverage ratio) of Excess Cash Flow (as defined in the Amended Term Loan Credit Agreement) in excess of $10.0 million, minus prepayments of Principal, the ABL Facility (to the extent accompanied by a permanent reduction in the commitments thereunder) and certain other specified indebtedness and amounts in connection with certain other enumerated items. As of February 1, 2025, we did not meet the Excess Cash Flow threshold to require a Prepayment.
In addition to mandatory Repayment and Prepayment obligations, we may at our option, prepay a portion of the outstanding Principal ("Optional Prepayment"). If we made Optional Prepayments before June 14, 2023, we would have been subject to penalties ranging from 1.00% to 2.00% of the aggregate principal amount.
All of Torrid LLC’s existing domestic subsidiaries and Torrid Intermediate LLC unconditionally guarantee all obligations under the Amended Term Loan Credit Agreement. Substantially all of the assets of Torrid LLC, Torrid LLC’s existing subsidiaries and Torrid Intermediate LLC will secure all such obligations and the guarantees of those obligations, subject to certain exceptions.
The Amended Term Loan Credit Agreement also contains a number of covenants that, among other things and subject to certain exceptions, will restrict our ability and the ability of our subsidiaries to: create, incur or assume liens on our assets or property; incur additional indebtedness; issue preferred or disqualified stock; consolidate or merge; sell assets; pay dividends or make distributions, make investments, or engage in transactions with our affiliates.
As of the end of fiscal years 2024 and 2023, we were compliant with our financial covenants under the Amended Term Loan Credit Agreement.
As of the end of fiscal year 2024, the fair value of the Amended Term Loan Credit Agreement was approximately $274.1 million. The fair value of the Amended Term Loan Credit Agreement is determined using current applicable rates for similar instruments as of the balance sheet date, a Level 2 measurement (as defined in "Note 19—Fair Value Measurements").
As of the end of fiscal year 2024, total borrowings, net of OID and financing costs, of $288.6 million remain outstanding under the Amended Term Loan Credit Agreement. During fiscal year 2024, we recognized $33.2 million of interest expense and $1.4 million of OID and financing costs related to the Amended Term Loan Credit Agreement. During fiscal year 2023, we recognized $36.1 million of interest expense and $1.4 million of OID and financing costs related to the Amended Term Loan Credit Agreement. The OID and financing costs are amortized over the Amended Term Loan Credit Agreement’s seven-year term and are reflected as a direct deduction of the face amount of the term loan in our consolidated balance sheets. We recognize interest payments, together with amortization of the OID and financing costs, in interest expense in our consolidated statements of operations and comprehensive income.
Senior Secured Asset-Based Revolving Credit Facility
In May 2015, we entered into a credit agreement for a senior secured asset-based revolving credit facility with Bank of America, N.A., which was subsequently amended in October 2017, June 2019, September 2019, June 2021, and April 2023
(“ABL Facility”). Under the ABL Facility the aggregate commitments available are $150.0 million (subject to a borrowing base), and we have the right to request additional commitments up to $50 million plus the aggregate principal amount of any permanent principal reductions we may take (subject to customary conditions precedent). The principal amount of the outstanding loans are due and payable on June 14, 2026. The April 21, 2023 amendment to the ABL Facility replaced the LIBOR interest rate benchmark with the SOFR benchmark. All other material terms of the ABL Facility remained substantially the same after giving effect to the April 21, 2023 amendment. We elected to apply the practical expedients included in ASU 2020-04 and 2021-01, accordingly, the April 21, 2023 amendment did not have a material impact on our consolidated financial statements.
The borrowing base for the ABL Facility at any time equals the sum of 90% of eligible credit card receivables, plus 90% of the appraised net orderly liquidation value of eligible inventory and eligible in-transit inventory multiplied by the cost of such eligible inventory and eligible in-transit inventory (to be increased to 92.5% during the period beginning on September 1 of each year and ending on December 31 of each year). The ABL Facility includes borrowing capacity for letters of credit and for borrowings on same-day notice, referred to as Swing Line Loans, and is available in U.S. dollars.
Under the ABL Facility we have the right to request up to $50.0 million of additional commitments plus the aggregate principal amount of any permanent principal reductions we may take plus the amount by which the borrowing base exceeds the aggregate commitments (subject to customary conditions precedent). The lenders under this facility are not under any obligation to provide any such additional commitments, and any increase in commitments is subject to customary conditions precedent. If we were to request any such additional commitments and the existing lenders or new lenders were to agree to provide such commitments, the size of the ABL Facility could increase to up to $200.0 million, but our ability to borrow under this facility would still be limited by the amount of the borrowing base.
Borrowings under the ABL Facility bear interest at an annual rate equal to, at our option, either (a) a base rate determined by reference to the highest of (1) the prime rate of Bank of America, N.A., (2) the federal funds effective rate plus 0.50% and (3) a SOFR rate for an interest period of one month adjusted for certain costs, plus 1.00%, in each case, plus an applicable margin that ranges from 0.25% to 0.75% based on average daily availability; or (b) at a SOFR rate for the interest period relevant to such borrowing adjusted for certain costs ("Adjusted SOFR"), in each case plus an applicable margin that ranges from 1.25% to 1.75%, based on average daily availability. As of the end of fiscal year 2024, the applicable interest rate for borrowings under the ABL Facility was approximately 8% per annum.
If we elect the SOFR rate, interest is due and payable on the last day of each interest period, unless an interest period exceeds three months, then the respective dates that fall every three months after the beginning of the interest period shall also be interest payment dates. If we elect the base rate (including a Swing Line Loan), interest is due and payable on the first business day of each month and on the maturity date.
In addition to paying interest on outstanding principal under the ABL Facility we are required to pay a commitment fee in respect of unutilized commitments. The commitment fee ranges between 0.25% and 0.375% per annum of unutilized commitments and will be subject to adjustment each fiscal quarter based on the amount of unutilized commitments during the immediately preceding fiscal quarter. We must also pay customary letter of credit fees and agent fees.
If at any time the aggregate amount of outstanding loans, unreimbursed letter of credit drawings and undrawn letters of credit under the ABL Facility exceeds the lesser of (a) the commitment amount and (b) the borrowing base, we will be required to repay outstanding loans and/or cash collateralize letters of credit in an aggregate amount equal to such excess, with no reduction of the commitment amount.
We may voluntarily reduce the unused portion of the commitment amount and repay outstanding loans at any time. Prepayment of the loans may be made without premium or penalty other than customary “breakage” costs with respect to SOFR loans.
All obligations under the ABL Facility are unconditionally guaranteed by substantially all of Torrid Intermediate LLC’s existing majority-owned domestic subsidiaries and will be required to be guaranteed by certain of Torrid Intermediate LLC’s future domestic majority-owned subsidiaries. All obligations under the ABL Facility and the guarantees of those obligations, will be secured, subject to certain exceptions, by substantially all of Torrid Intermediate LLC’s assets.
The ABL Facility requires us to maintain a fixed charge coverage ratio of at least 1.00 to 1.00 if we fail to maintain Specified Availability (as defined by the ABL Facility) of at least the greater of 10% of the Loan Cap, as defined by the ABL Facility and $7.0 million. The ABL Facility contains a number of other covenants that, among other things and subject to certain exceptions, will restrict our ability and the ability of our subsidiaries to: incur additional indebtedness; pay dividends on
our capital stock or redeem, repurchase or retire our capital stock or our other indebtedness; make investments, loans and acquisitions; engage in transactions with our affiliates; sell assets, including capital stock of our subsidiaries; alter the business we conduct; consolidate or merge; and incur liens. As of the end of fiscal years 2024 and 2023, we were compliant with our debt covenants under the ABL Facility.
The ABL Facility specifically restricts dividends and distributions, aside from amounts to cover ordinary operating expenses and taxes, between our subsidiaries and to us. However, dividends and distributions are permitted at any time that either (1) availability under the ABL Facility is equal to or greater than 15% of the maximum borrowing amount on a pro forma basis and we are pro forma compliant with a 1.00 to 1.00 fixed charge coverage ratio or (2) availability under the ABL Facility is equal to or greater than 20% of the maximum borrowing amount on a pro forma basis. As of the end of fiscal years 2024 and 2023, the maximum restricted payments utilizing the ABL Facility that our subsidiaries could make from its net assets were $102.8 million and $103.2 million, respectively.
We consider the carrying amounts of the ABL Facility to approximate fair value because it is carried at a market observable interest rate that resets periodically and is categorized as Level 2 in the fair value hierarchy.
Availability under the ABL Facility at the end of fiscal year 2024 was $109.5 million, which reflects no borrowings. Availability under the ABL Facility at the end of fiscal year 2023 was $102.7 million, which reflects borrowings of $7.3 million. Standby letters of credit issued and outstanding were $11.4 million and $11.4 million at the end of fiscal years 2024 and 2023, respectively. During the third quarter of fiscal year 2017, we incurred $0.5 million of financing costs for the ABL Facility, which were reduced in fiscal year 2019 by $0.1 million written off to account for the impact of our entry into the 1st Amendment. During the second quarter of fiscal year 2021, we incurred an additional $0.7 million of financing costs in connection with our entry into the 3rd Amendment. These financing costs, together with the unamortized financing costs of $0.1 million associated with the Original ABL Facility, are amortized over the five-year term of the ABL Facility and are reflected in prepaid expenses and other current assets and deposits and other noncurrent assets in our consolidated balance sheets. During fiscal years 2024, 2023 and 2022, we amortized financing costs of $0.2 million in each period. During fiscal years 2024, 2023 and 2022, interest payments were $0.9 million, $1.6 million and $1.8 million, respectively. We recognize amortization of financing costs and interest payments for the revolving credit facility in interest expense in our consolidated statements of operations and comprehensive income.
v3.25.1
Income Taxes
12 Months Ended
Feb. 01, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income Before Provision for Income Taxes
The domestic and foreign income before provision for income taxes during fiscal years 2024, 2023 and 2022 is as follows (in thousands):
 Fiscal Year Ended
 February 1, 2025February 3, 2024January 28, 2023
Domestic$17,424 $17,604 $69,273 
Foreign4,179 431 2,409 
Income before provision for income taxes
$21,603 $18,035 $71,682 
Provision for Income Taxes
The composition of the provision for income taxes during fiscal years 2024, 2023 and 2022 is as follows (in thousands):
 Fiscal Year Ended
 February 1, 2025February 3, 2024January 28, 2023
Current:
Federal$11,565 $9,108 $14,442 
State1,620 2,795 4,693 
Foreign21 186 487 
$13,206 $12,089 $19,622 
Deferred:
Federal$(7,387)$(5,193)$1,632 
State(777)(513)
Foreign243 33 215 
(7,921)(5,673)1,851 
Total income tax provision$5,285 $6,416 $21,473 
Significant components of our deferred tax assets and liabilities are as follows (in thousands):
February 1, 2025February 3, 2024
Deferred tax assets (liabilities):
Inventory$1,483 $1,254 
Loyalty reserve2,874 3,318 
Accrued bonus2,032 250 
Lease liability38,729 45,308 
Share-based compensation2,324 1,355 
Interest expense limitation5,658 3,840 
Other deferred tax assets7,335 7,211 
ROU assets(33,182)(38,053)
Intangible assets(2,065)(2,062)
Depreciation(6,531)(11,877)
Other deferred tax liabilities(2,037)(1,863)
Total net deferred tax assets$16,620 $8,681 
A reconciliation of the provision for income taxes to the statutory tax rate is as follows:
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
Statutory federal rate21.0 %21.0 %21.0 %
State and local taxes, net of federal benefit3.6 10.9 5.3 
Share-based compensation0.1 5.1 2.1 
Liability for uncertain tax positions(0.6)(1.5)(0.2)
Information technology services charge— — 0.4 
Limitation on Section 162(m) officers0.9 0.5 1.3 
Foreign derived intangible income(0.2)(0.3)(0.2)
Other differences, net(0.3)(0.1)0.3 
Effective income tax rate24.5 %35.6 %30.0 %
Excess tax benefits or detriments associated with share-based payment awards are recognized as income tax benefits or expense in the consolidated statements of operations and comprehensive income. The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. The income tax detriment resulting from share-based awards was $1.8 million for fiscal year 2024 and is reflected as an increase to the income tax provision.
As of the end of fiscal year 2024, we had accumulated undistributed earnings and profits of our foreign subsidiary of approximately $9.0 million. We continue to treat undistributed earnings of our foreign subsidiary as indefinitely reinvested according to our current operating plans and no deferred tax liability has been recorded for potential future taxes related to such earnings. According to current tax law, any future dividends paid from our foreign subsidiary will not be subject to income tax in the United States, except for withholding taxes and state taxes, which are not material. We have made a determination on our accounting policy choice to treat taxes related to GILTI as a period cost.
On August 16, 2022, the Inflation Reduction Act of 2022 (the "IR Act") was enacted to reduce inflation and promote clean energy in the United States. Among other things, the IR Act introduced a 15% alternative minimum tax based on the adjusted financial statement income of corporations or their predecessors with a three-year taxable year average annual adjusted financial statement income in excess of $1 billion and imposes a 1% excise tax on the fair market value of stock repurchases made by covered corporations after December 31, 2022. The IR Act also includes provisions intended to mitigate climate change by, among others, providing tax credit incentives for reductions in greenhouse gas emissions. We have considered the applicable IR Act tax law changes in our tax provision for the year ended February 1, 2025, and continue to evaluate the impact of this tax law changes on future periods.
Uncertain Tax Positions
The amount of income taxes we pay is subject to ongoing audits by taxing authorities. Our estimate of the potential outcome of any uncertain tax issue is subject to our assessment of the relevant risks, facts and circumstances existing at the time. We believe that we have adequately provided for reasonably foreseeable outcomes related to these matters. However, our future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are made or resolved, which may impact our effective tax rate. As of the end of fiscal year 2024, the total liability for income taxes associated with unrecognized tax benefits, including interest and penalties, was $2.4 million ($2.0 million, net of federal benefit). As of the end of fiscal year 2023, the total liability for income taxes associated with unrecognized tax benefits, including interest and penalties, was $2.5 million ($2.1 million, net of federal benefit). Our effective tax rate will be affected by any portion of this liability we may recognize.
We believe that it is reasonably possible that $0.4 million ($0.3 million net of federal benefit) of our liability for unrecognized tax benefits, of which the associated interest and penalties are not material, may be recognized in the next 12 months due to the expiration of statutes of limitations.
The following table reconciles the amount recorded for the liability for income taxes associated with unrecognized tax benefits as of the end of fiscal years 2024, 2023 and 2022 (in thousands):
 Fiscal Year Ended
 February 1, 2025February 3, 2024January 28, 2023
Unrecognized tax benefits at the beginning of the fiscal year$1,925 $2,996 $3,293 
(Reductions) additions:
Tax positions related to the current period— 59 
Tax positions related to the prior period154 104 (116)
Tax positions settled or statute of limitations lapsed(262)(1,175)(240)
Unrecognized tax benefits at the end of the fiscal year$1,820 $1,925 $2,996 
Our continuing practice is to recognize interest and penalties related to unrecognized tax benefits as a tax expense. In fiscal years 2024, 2023 and 2022, tax expense related to interest and penalties was $0.5 million, $0.6 million and $0.8 million, respectively.
We operate stores throughout the United States, Puerto Rico and Canada, and as a result, we file income tax returns in the United States federal jurisdiction and various state, local and foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities. The federal statute of limitations period is three years and most states follow this limitations period with few exceptions. Consequently, tax years between 2021 and 2023 are open for examination.
v3.25.1
Share-Based Compensation
12 Months Ended
Feb. 01, 2025
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
Our share-based compensation expense, by award type, consists of the following (in thousands):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
Restricted stock units$2,391 $2,405 $1,818 
Restricted stock awards128 2,018 6,304 
Performance-based restricted stock units124 711 568 
Stock options1,787 1,537 972 
Restricted cash units3,009 1,209 — 
Employee stock purchase plan195 162 318 
Share-based compensation expense before income taxes7,634 8,042 9,980 
Income tax detriment1,831 923 340 
Net share-based compensation expense$9,465 $8,965 $10,320 
On June 22, 2021, our Board adopted the Torrid Holdings Inc. 2021 Long-Term Incentive Plan (the "2021 LTIP"), for employees, consultants and directors. The 2021 LTIP provides for the grant of non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units ("RSUs") including performance-based restricted stock units ("PSUs"), stock awards, dividend equivalents, other stock-based awards, cash awards and substitute awards intended to align the interests of service providers, with those of our shareholders. As of the end of fiscal year 2024, 10,687,500 shares were authorized for issuance under the 2021 LTIP.
On June 22, 2021, our Board adopted the Torrid Holdings Inc. 2021 Employee Stock Purchase Plan (the "ESPP"), intended to qualify under Section 423 of the U.S. Internal Revenue Code of 1986, as amended, in order to provide all of our eligible employees with a further incentive towards ensuring our success and accomplishing our corporate goals. The ESPP allows eligible employees to contribute up to 15% of their base earnings towards purchases of common stock, subject to an annual maximum. The purchase price is 85% of the lower of (i) the fair market value of the stock on the date of enrollment and (ii) the fair market value of the stock on the last day of the related purchase period. As of the end of fiscal year 2024, 3,650,000 shares were authorized for issuance under the ESPP.
RSUs
RSUs are awarded to certain employees, non-employee directors and consultants and entitle the grantee to receive shares of common stock at the end of a vesting period, subject to the employee's continued employment or service as a director or consultant. In general, RSUs vest in equal installments each year over four years.
Pursuant to the agreements we entered into with certain members of our management, such employees received one-time grants of RSUs ("IPO Awards") in an aggregate amount equal to $5.7 million. Fifty percent of the IPO Awards were fully vested on the date of grant, and the remaining 50% will vest in equal installments on the first, second and third anniversaries of the grant date. These members of our management must remain employed by us through each vesting date in order to vest in the applicable portions of their IPO Awards.
PSUs are awarded to certain employees, non-employee directors and consultants and entitle the grantee to receive shares of common stock based on the achievement of various company performance targets and market conditions. In general, PSUs vest in equal installments over a three-year period subject to the achievement of the performance targets or market conditions.
RSU activity, including IPO Awards and PSUs, under the 2021 LTIP consists of the following (in thousands except per share amounts):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
SharesWeighted average grant date value per shareSharesWeighted average grant date value per shareSharesWeighted average grant date value per share
Nonvested at the beginning of the fiscal year1,953 $4.14 1,386 $6.55 278 $26.75 
Granted 659 $4.67 1,312 $3.13 1,371 $5.07 
Vested(541)$4.72 (249)$8.57 (66)$25.65 
Forfeited(588)$3.76 (496)$5.98 (197)$18.07 
Nonvested at the end of the fiscal year1,483 $4.32 1,953 $4.14 1,386 $6.55 
As of the end of fiscal year 2024, unrecognized compensation expense related to unvested RSUs, including PSUs, was $4.0 million, which is expected to be recognized over a weighted average period of approximately 2.0 years. The total fair value of RSUs which vested during fiscal years 2024, 2023 and 2022 was $3.1 million, $0.8 million and $0.3 million, respectively.
The weighted average grant date fair value of the PSUs was estimated at the grant date using a Monte Carlo simulation following a Geometric Brownian Motion with the following weighted average assumptions:
Fiscal Year Ended
February 1, 2025 (1)
February 3, 2024January 28, 2023
Dividend yield
— %— %— %
Expected volatility(2)
— %68.4 %70.7 %
Risk-free interest rate(3)
— %3.8 %3.2 %
Expected term(4)
3 years3 years
Grant date fair value per share$— $1.66 $4.15 
(1)    We did not grant any PSUs in fiscal year 2024.
(2)     The expected volatility is estimated based on the historical volatility of a select peer group of similar publicly traded companies for a term that is consistent with the expected term of the PSUs.
(3)    The risk-free interest rates are based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected term of the PSUs.
(4)    The expected term of the PSUs represents the time period from the grant date and the full vesting date.
Restricted Stock Awards
Restricted stock awards ("RSAs") are awarded to certain employees, non-employee directors and consultants, subject to the employee's continued employment or service as a director or consultant. RSAs vest over periods ranging from two to four years, subject to the employee's continued employment or service as an employee, non-employee director or consultant, as applicable, on each vesting date.
RSA activity under the 2021 LTIP consists of the following (in thousands except per share amounts):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
SharesWeighted average grant date fair value per shareSharesWeighted average grant date fair value per shareSharesWeighted average grant date fair value per share
Nonvested at the beginning of the fiscal year$27.00 211 $27.00 532 $27.00 
Granted— — — 
Vested(5)$27.00 (102)$27.00 (241)$27.00 
Forfeited— $— (104)$27.00 (80)$27.00 
Nonvested at the end of the fiscal year— $— $27.00 211 $27.00 
As of the end of fiscal year 2024, there was no unrecognized compensation expense related to unvested RSAs. The total vesting date fair value of RSAs which vested during fiscal year 2024 was not material. The total vesting date fair value of RSAs which vested during fiscal years 2023 and 2022 was $0.3 million and $1.4 million, respectively.
Stock Options
Stock options generally vest in equal installments each year over four years and generally expire 10 years from the grant date.
Stock option activity under the 2021 LTIP consists of the following (in thousands except per share and contractual life amounts):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
SharesWeighted average exercise price per shareSharesWeighted average exercise price per shareSharesWeighted average exercise price per share
Outstanding at the beginning of the fiscal year2,352 $4.98 1,444 $7.38 337 $21.03 
Granted1,048 $4.60 1,514 $3.19 1,420 $5.58 
Exercised(133)$3.52 — — 
Expired / forfeited(559)$4.70 (606)$6.56 (313)$13.90 
Outstanding at the end of the fiscal year2,708 $4.95 2,352 $4.98 1,444 $7.38 
Vested and expected to vest at the end of the fiscal year2,708 $4.95 2,352 $4.98 1,444 $7.38 
Exercisable at the end of the fiscal year677 $6.41 307 $8.73 44 $21.03 
The aggregate intrinsic value of options outstanding as of the end of fiscal year 2024 was approximately $7.1 million and the weighted-average remaining contractual term was 8.3 years. The aggregate intrinsic value of options vested and expected to vest as of the end of fiscal year 2024 was $7.1 million and the weighted-average remaining contractual term was 8.3 years. The aggregate intrinsic value of options exercisable as of the end of fiscal year 2024 was approximately $1.5 million and the weighted-average remaining contractual term was 7.6 years.
The weighted average grant date fair value of stock option awards granted during fiscal year 2024, 2023 and 2022 was $2.77, $1.91 and $3.25 per option, respectively, and was estimated at the grant date using the OPM with the following weighted average assumptions:
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
Dividend yield— %— %— %
Expected volatility(1)
59.1 %60.4 %59.0 %
Risk-free interest rate(2)
4.4 %3.7 %3.1 %
Expected term(3)
6.25 years6.25 years6.25 years
Grant date fair value per share$2.77 $1.91$3.25
(1)    The expected volatility is estimated based on the historical volatility of a select peer group of similar publicly traded companies for a term that is consistent with the expected term of the stock options.
(2)    The risk-free interest rates are based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected term of the stock options.
(3)    The expected term of the stock options represents the estimated period of time until exercise and is calculated using the simplified method.

As of the end of fiscal year 2024, unrecognized compensation expense related to unvested stock options was $4.1 million, which is expected to be recognized over a weighted average period of approximately 2.6 years.
RCUs
RCUs are awarded to certain employees, non-employee directors and consultants and represent the right to receive a cash payment at the end of a vesting period, subject to the employee's continued employment or service as a director or consultant. In general, RCUs vest in equal installments each year over four years. RCUs are cash-settled with the value of each vested RCU equal to the lower of the closing price per share of our common stock on the vesting date or a specified per share price cap. During fiscal year 2024, we made cash payments totaling $1.3 million associated with vested RCUs. We determined that RCUs are in-substance liabilities accounted for as liability instruments in accordance with ASC 718, Compensation—Stock Compensation, due to this cash settlement feature. RCUs are remeasured based on the closing price per share of our common stock at the end of each reporting period. As of the end of fiscal year 2024, the liability associated with unvested RCUs was $2.9 million, which is included in accrued and other current liabilities in the consolidated balance sheet.
v3.25.1
Other Noncurrent Liabilities
12 Months Ended
Feb. 01, 2025
Other Liabilities Disclosure [Abstract]  
Other Noncurrent Liabilities Other Noncurrent Liabilities
Other noncurrent liabilities consist of the following (in thousands):
February 1, 2025February 3, 2024
Noncurrent portion of lease incentives$271 $730 
Noncurrent income taxes payable2,366 2,517 
Deferred PLCC Funds2,958 3,458 
Other noncurrent liabilities$5,595 $6,705 
v3.25.1
Commitments and Contingencies
12 Months Ended
Feb. 01, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Operating Lease Agreements
We have entered into operating lease agreements for retail, distribution and office space; and vehicles and equipment, under primarily non-cancelable leases with terms ranging from approximately one to 17 years. Please refer to "Note 9—Leases" for further discussion regarding our leases.
Litigation
In April 2024, a class action complaint was filed in the Court captioned Crystal Jillson and Carmen Perez v. Torrid LLC. The complaint alleges misleading and unlawful pricing, sales, and discounting practices on our website under multiple legal
theories including violation of California’s Unfair Competition Law, California False Advertising Law and California Consumer Legal Remedies Act. We intend to vigorously defend ourselves against the complaint.
In October 2024, we were notified by a third-party vendor that it had observed a potentially unauthorized access to our data stored in a data warehouse. We have been named as a defendant in six pending class action lawsuits alleging that we failed to employ adequate security measures to protect the data stored in the data warehouse. On February 25, 2025, the United States District Court of the Central District of California granted a motion to consolidate the six lawsuits, and plaintiffs are required to file a single consolidated class action complaint no later than April 28, 2025. We intend to vigorously defend ourselves in this matter.
From time to time, we are involved in other matters of litigation that arise in the ordinary course of business. Though significant litigation or awards against us could seriously harm our business and financial results, we do not at this time expect these other matters of litigation to have a material adverse effect on our consolidated financial statements.
Indemnities, Commitments and Guarantees
During the ordinary course of business, we have made certain other indemnities, commitments and guarantees under which we may be required to make payments in relation to certain transactions. These indemnities include those given to various lessors in connection with facility leases for certain claims arising from such facility or lease and indemnities to our Board and officers to the maximum extent permitted. Commitments include those given to various merchandise vendors and suppliers. From time to time, we have issued guarantees in the form of standby letters of credit as security for workers’ compensation claims. (Our letters of credit are discussed in more detail in "Note 12—Debt Financing Arrangements"). The durations of these indemnities, commitments and guarantees vary. Some of these indemnities, commitments and guarantees do not provide for any limitation of the maximum potential future payments we could be obligated to make. We have not recorded any liability for these indemnities, commitments and guarantees in the accompanying consolidated financial statements as no demands have been made upon us to provide indemnification under such agreements and there are no claims that we are aware of that could have a material effect on our consolidated financial statements.
v3.25.1
Share Repurchases
12 Months Ended
Feb. 01, 2025
Equity [Abstract]  
Share Repurchases Share Repurchases
On December 6, 2021, our Board authorized a share repurchase program under which we may purchase up to $100.0 million of our outstanding common stock. Repurchases may be made from time to time, depending upon a variety of factors, including share price, corporate and regulatory requirements, and other market and business conditions, as determined by us. We may purchase shares of our common stock in the open market at current market prices at the time of purchase, in privately negotiated transactions, or by other means. The authorization does not, however, obligate us to acquire any particular amount of shares, and the share repurchase program may be suspended or terminated at any time at our discretion. As of February 1, 2025, we had approximately $44.9 million remaining under the share repurchase program.
Share repurchase activity consists of the following (in thousands except share and per share amounts):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
Number of shares repurchased— — 4,464,367 
Total cost$— $— $31,700 
Average per share cost including commissions$— $— $7.10 
v3.25.1
Earnings Per Share
12 Months Ended
Feb. 01, 2025
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is applicable only in periods of net income and is computed by dividing net income by the weighted average number of common shares outstanding for the period, inclusive of potentially dilutive common shares outstanding for the period. Periods of net loss require the diluted computation to be the same as the basic computation. During fiscal years 2024, 2023, and 2022, there were approximately 1.1 million, 0.4 million, and 0.1 million potentially dilutive common share equivalents outstanding that were included in the computation of diluted earnings per share, respectively. During fiscal year 2024, there were approximately 0.1 million RSAs and RSUs, including PSUs, and approximately 1.6 million stock options outstanding, which were excluded from the computation of diluted earnings per share as those awards would have been anti-dilutive or were PSUs with performance conditions that had not yet been achieved. During fiscal year 2023, there were approximately 0.6 million RSAs and RSUs, including PSUs, and approximately 2.3 million
stock options outstanding, which were excluded from the computation of diluted earnings per share as those awards would have been anti-dilutive or were PSUs with performance conditions that had not yet been achieved. During fiscal year 2022, there were approximately 0.9 million RSAs and RSUs and approximately 0.9 million stock options outstanding, which were excluded from the computation of diluted earnings per share as those awards would have been anti-dilutive.
v3.25.1
Fair Value Measurements
12 Months Ended
Feb. 01, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
We carry certain of our assets and liabilities 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 require us 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 our estimates and assumptions that market participants would use in pricing the asset or liability.
Financial assets and liabilities measured at fair value on a recurring basis as of the end of fiscal year 2024 consisted of the following (in thousands):
February 1,
2025
Quoted Prices
in Active
Markets for
Identical
Items
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets:
Money market funds (cash equivalent)$31,727 $31,727 $— $— 
Total assets$31,727 $31,727 $— $— 
Liabilities:
Deferred compensation plan liability (current)$1,767 $— $1,767 $— 
Deferred compensation plan liability (noncurrent)3,913 — 3,913 — 
Total liabilities$5,680 $— $5,680 $— 
Financial assets and liabilities measured at fair value on a recurring basis as of the end of fiscal year 2023 consisted of the following (in thousands):
February 3,
2024
Quoted Prices
in Active
Markets for
Identical
Items
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets:
Money market funds (cash equivalent)$33 $33 $— $— 
Total assets$33 $33 $— $— 
Liabilities:
Deferred compensation plan liability (noncurrent)$5,474 $— $5,474 $— 
Total liabilities$5,474 $— $5,474 $— 
The fair value of our money market funds is based on quoted prices in active markets. The deferred compensation plan liability represents the amount that would be earned by participants if the funds were invested in securities traded in active markets. The fair value of the deferred compensation plan liability is determined based on quoted prices of similar assets that are traded in observable markets, or represents the cash withheld by participants prior to any investment activity.
v3.25.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Pay vs Performance Disclosure      
Net income $ 16,318 $ 11,619 $ 50,209
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
Insider Trading Policies and Procedures
12 Months Ended
Feb. 01, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.1
Cybersecurity Risk Management and Strategy Disclosure
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]
Cybersecurity Risk Management and Strategy
We rely extensively on various information systems, operated by us as well as third-party service providers, to manage many aspects of our business. We are susceptible to a number of significant and persistent cybersecurity threats, including those common to most industries as well as those we face as a retailer, operating in an industry characterized by a high volume of customer transactions and collection of sensitive data. These threats, which are constantly evolving, include data breaches,
ransomware, and phishing attacks. We, and our vendors and suppliers, regularly face attempts by malicious actors to breach our security and compromise our information technology systems, and a cybersecurity incident impacting us or any vendor or supplier could significantly disrupt our operations and result in damage to our reputation, costly litigation and/or government enforcement action.
Accordingly, we recognize the critical importance of protecting and securing these information systems and have implemented multiple layers of cybersecurity processes, technologies, and controls to aid in our efforts to assess, identify, and manage cybersecurity risk. Our enterprise risk management framework considers cybersecurity risk alongside other company risks as part of our overall risk assessment process. Efforts to assess, identify, and manage cybersecurity risk are led by our dedicated Chief Operating Officer (“COO”), and supported by an experienced team, other members of management, and the Board. From time to time, we engage consultants, auditors, and other third parties to assist us in these efforts.
We assess our information security program using an industry-leading cybersecurity framework, the National Institute of Standards and Technology ("NIST") Cybersecurity Framework ("CSF"). A risk assessment along with risk-based analysis and judgment are used to select security controls to address risks. During this process, the following factors, among others, are considered: likelihood and severity of risk, impact on us and others if a risk materializes, feasibility and cost of controls and impact of controls on operations.
To test our cybersecurity program, we perform periodic vulnerability testing, engage an independent third party to perform periodic internal and external penetration testing, and engage other third parties to conduct periodic assessments of our cybersecurity capabilities. We continuously expand training and awareness practices to mitigate risk from human error, including mandatory computer-based training and internal communications for employees. Our employees undergo cybersecurity awareness training and regular phishing simulation campaigns that are based upon and designed to emulate real-world contemporary threats. We provide prompt feedback (and, if necessary, additional training or remedial action) based on the results of such exercises.
Our processes also address cybersecurity risks associated with our use of third-party service providers used in different capacities to provide or operate some of our cybersecurity and technology systems. We proactively evaluate the cybersecurity risk of a third party by utilizing a repository of risk assessments and external monitoring sources, including performing dark web analyses, to better inform us during contracting and vendor selection processes. Security issues are documented and tracked, and periodic monitoring of third parties is conducted in an effort to mitigate risk.
In addition to the processes, technologies, and controls that we have in place that are designed to reduce the likelihood of a material cybersecurity incident (or series of related cybersecurity incidents), we have a written incident response plan outlining how to address cybersecurity events that occur. The plan sets forth the steps for coordination among various corporate functions and governance groups, including the legal and finance functions, the Board, and external breach counsel, and serves as a framework for the execution of responsibilities across businesses and operational roles. Our incident response plan is designed to help us coordinate actions to prepare for, detect, respond to and recover from cybersecurity incidents, and includes processes to triage, assess severity, escalate, contain, investigate, and remediate the incident, as well as to assess the need for disclosure, comply with applicable legal obligations and mitigate the impact to our brand and reputation and on impacted parties.
In addition to our cybersecurity incident response plan, we conduct tabletop exercises to enhance our incident response preparedness. We maintain business continuity and disaster recovery plans for certain critical applications and services to prepare for and respond to the potential for a disruption in the technology we rely on.
Impact of cybersecurity risks on business strategy, results of operations or financial condition
Torrid (or the third parties it relies on) may not be able to fully, continuously, or effectively implement security controls as intended. As described above, we utilize a risk-based approach and judgment to determine whether and how to implement certain security controls and it is possible that we may not implement the necessary controls if we are unable to recognize or underestimate a particular risk. In addition, security controls, no matter how well designed or implemented, may only mitigate and not fully eliminate cybersecurity risks. Cybersecurity events, when detected by security tools or third parties, may not always be identified immediately or addressed in the manner intended by our cybersecurity incident response plan. While we maintain cyber risk insurance, the costs relating to certain kinds of security incidents could be substantial, and our insurance may not be sufficient to cover all losses related to any future incidents involving our data or systems. See “Risks Related to Our Business” in Item 1A, “Risk Factors” in this Annual Report for a discussion of cybersecurity risks that may materially impact us.
Based on the information available as of the date of this Annual Report, no material risks from known cybersecurity incidents have, either individually or in the aggregate, materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations or financial condition. There is no guarantee that any risks from cybersecurity threats will not materially affect us in the future.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
Accordingly, we recognize the critical importance of protecting and securing these information systems and have implemented multiple layers of cybersecurity processes, technologies, and controls to aid in our efforts to assess, identify, and manage cybersecurity risk. Our enterprise risk management framework considers cybersecurity risk alongside other company risks as part of our overall risk assessment process. Efforts to assess, identify, and manage cybersecurity risk are led by our dedicated Chief Operating Officer (“COO”), and supported by an experienced team, other members of management, and the Board. From time to time, we engage consultants, auditors, and other third parties to assist us in these efforts.
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]
Cybersecurity Governance
The Board oversees our overall risk assessment process, where we assess key enterprise risks within the company, and at least quarterly, senior management reviews these risks with the Board. Cybersecurity and other technology risks, which are considered in our enterprise risk management framework, continue to remain a top priority for the Board. Primary oversight responsibility for cybersecurity and other technology risks has been given to the Audit Committee by the Board.
Our cybersecurity risk management and strategy processes are led by our COO, assisted by our Vice President of Infrastructure and Operations. Together, they have over 20 years of combined professional experience in various roles across multiple industries involving managing information security, developing cybersecurity strategy, implementing effective information and cybersecurity programs, and managing multiple industry and regulatory compliance environments.
At least quarterly, the Audit Committee, Chief Executive Officer and senior finance and legal management, evaluate, review and discuss with the COO our cybersecurity, privacy and data security programs, the status of projects to strengthen internal cybersecurity, results from third-party assessments, recent cybersecurity incidents at other companies and the emerging threat landscape. Significant cybersecurity incidents are reviewed and discussed with the Audit Committee and senior finance and legal management as required by our cybersecurity incident response plan.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Board oversees our overall risk assessment process, where we assess key enterprise risks within the company, and at least quarterly, senior management reviews these risks with the Board.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Board oversees our overall risk assessment process, where we assess key enterprise risks within the company, and at least quarterly, senior management reviews these risks with the Board. Cybersecurity and other technology risks, which are considered in our enterprise risk management framework, continue to remain a top priority for the Board. Primary oversight responsibility for cybersecurity and other technology risks has been given to the Audit Committee by the Board.
Cybersecurity Risk Role of Management [Text Block] Our cybersecurity risk management and strategy processes are led by our COO, assisted by our Vice President of Infrastructure and Operations. Together, they have over 20 years of combined professional experience in various roles across multiple industries involving managing information security, developing cybersecurity strategy, implementing effective information and cybersecurity programs, and managing multiple industry and regulatory compliance environments.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
Our cybersecurity risk management and strategy processes are led by our COO, assisted by our Vice President of Infrastructure and Operations. Together, they have over 20 years of combined professional experience in various roles across multiple industries involving managing information security, developing cybersecurity strategy, implementing effective information and cybersecurity programs, and managing multiple industry and regulatory compliance environments.
At least quarterly, the Audit Committee, Chief Executive Officer and senior finance and legal management, evaluate, review and discuss with the COO our cybersecurity, privacy and data security programs, the status of projects to strengthen internal cybersecurity, results from third-party assessments, recent cybersecurity incidents at other companies and the emerging threat landscape. Significant cybersecurity incidents are reviewed and discussed with the Audit Committee and senior finance and legal management as required by our cybersecurity incident response plan.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Together, they have over 20 years of combined professional experience in various roles across multiple industries involving managing information security, developing cybersecurity strategy, implementing effective information and cybersecurity programs, and managing multiple industry and regulatory compliance environments.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
At least quarterly, the Audit Committee, Chief Executive Officer and senior finance and legal management, evaluate, review and discuss with the COO our cybersecurity, privacy and data security programs, the status of projects to strengthen internal cybersecurity, results from third-party assessments, recent cybersecurity incidents at other companies and the emerging threat landscape. Significant cybersecurity incidents are reviewed and discussed with the Audit Committee and senior finance and legal management as required by our cybersecurity incident response plan.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.1
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Feb. 01, 2025
Accounting Policies [Abstract]  
Fiscal Year
Fiscal Year
Our fiscal year ends on the Saturday nearest to January 31 and each fiscal year is generally comprised of four 13-week quarters (although in years with 53 weeks, the fourth quarter is comprised of 14 weeks).
Principles of Consolidation
Principles of Consolidation
The accompanying audited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The consolidated financial statements include our accounts and those of our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Segment Reporting
Segment Reporting
We derive revenues primarily from the sale of apparel, intimates and accessories through our e-Commerce platform and our store locations, and have determined that we have one reportable segment at the consolidated level. The accounting policies of the segment are the same as described within this summary of significant accounting policies. The single segment was identified based on how the Chief Operating Decision Maker ("CODM"), who we have determined to be our Chief Executive Officer, manages and evaluates performance and allocates resources based on consolidated net income. As the CODM is not provided any asset information, we do not disclose the measure of segment assets.
Use of Estimates
Use of Estimates
We are required to make certain estimates and assumptions in order to prepare consolidated financial statements in conformity with GAAP. Such estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities in the consolidated financial statements and accompanying notes. We believe the estimates and assumptions most critical to the preparation of our consolidated financial statements include those made in connection with revenue recognition, including accounting for estimated merchandise returns and loyalty program expenses; estimating the value of inventory; determining operating lease liabilities; and estimating share-based compensation expense. The estimation process required to prepare our consolidated financial statements requires assumptions to be made about future events and conditions, and as such, is inherently subjective and uncertain. Our actual results could differ materially from those estimates.
Concentration Risks
Concentration Risks
We consider all highly liquid investments with maturities of less than three months when purchased to be cash equivalents. All credit and debit card receivable balances are also classified as cash and cash equivalents. As of the end of fiscal years 2024 and 2023, the amounts due from third party financial institutions for these transactions classified as cash and cash equivalents totaled $7.9 million and $8.9 million, respectively. Cash and cash equivalents used primarily for working capital purposes are maintained with various major third party financial institutions in amounts which are in excess of the Federal Deposit Insurance Corporation ("FDIC") insurance limits. We are potentially exposed to a concentration of credit risk when cash and cash equivalent deposits in these financial institutions are in excess of FDIC limits. We consider the credit risk associated with these financial instruments to be minimal as cash and cash equivalents are held by financial institutions with high credit ratings and we have not historically sustained any credit losses associated with our cash and cash equivalents balances.
Inventory
Inventory
Inventory is valued at the lower of moving average cost or net realizable value. We make certain assumptions regarding net realizable value in order to assess whether our inventory is recorded properly at the lower of cost or net realizable value. These assumptions are based on historical average selling price experience, current selling price information and estimated future selling price information. Physical inventory counts are conducted during the year to determine actual inventory on hand and shrinkage. We accrue our estimated inventory shrinkage for the period between the last physical store count and current balance sheet date.
Property and Equipment
Property and Equipment
Property and equipment are recorded at cost less accumulated depreciation. Major repairs and improvements are capitalized, while routine maintenance and repairs are expensed as incurred. The gross carrying amounts of property and equipment 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. Application and development costs associated with internally developed software such as salaries of employees and payments made to third parties and consultants working on the software development are capitalized. Subsequent additions, modifications or upgrades to internal-use software are capitalized only to the extent that they constitute major enhancements. Capitalized internal-use software costs are amortized using the straight-line method over their estimated useful lives, which are generally three years.
Depreciation expense is calculated using the straight-line method over the following estimated useful lives:
Leasehold improvements  
shorter of the 3- to 10-year estimated useful life or the respective lease term
Furniture, fixtures and equipment  
2 to 10 years
Software and licenses  
3 to 7 years
The carrying value of property and equipment is subject to assessment for potential impairment whenever events or changes in circumstances indicate that an asset’s carrying value may not be recoverable, as further described below.
Definite-Lived Assets
Definite-Lived Assets
We assess the carrying value of definite-lived assets for potential impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. We group and evaluate definite-lived assets for impairment at the individual store level, which is the lowest level at which individual cash flows can be identified. Factors we consider important that could trigger an impairment review of our stores or e-Commerce operations include significant underperformance relative to historical or projected future operating results, a significant change in the manner of the use of the asset or a significant negative industry or economic trend. If we determine the carrying value of definite-lived assets may not be recoverable based upon the existence of one or more of the aforementioned factors, we test for the recoverability of the carrying value of our definite-lived assets by comparing the carrying value of the asset groups to our estimated undiscounted future net cash flows attributable to the asset groups. If the carrying value of the definite-lived assets is greater than the related undiscounted future net cash flows, the definite-lived assets are measured for impairment. We measure the impairment by comparing the difference between the definite-lived asset’s carrying value and the discounted future net cash flows attributable to the definite-lived asset, which represent its fair value. We calculate the discounted future net cash flows of a store by netting future estimated sales of each store against estimated cost of goods sold, store occupancy costs and other store operating expenses such as payroll, supplies, repairs and maintenance and credit/debit card fees. Changes in these assumptions may cause the fair value to be significantly impacted. In the event future performance is lower than forecasted results, future cash flows may be lower than expected, which could result in future impairment charges. While we believe that recently opened stores will provide sufficient cash flow, material changes in financial performance could result in future store impairment charges.
Indefinite-Lived Intangible Assets
Indefinite-Lived Intangible Assets
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 the carrying value may not be recoverable. Judgments regarding indicators of potential impairment are based on market conditions and operational performance of the business.
At the end of the third quarter of each fiscal year, we perform an impairment analysis of indefinite-lived intangible assets. We assess our indefinite-lived intangible asset for impairment using a qualitative analysis to determine whether it is more likely than not that the fair value of the asset is less than its carrying value. If it is determined that it is more likely than not that the fair value of the asset is less than its carrying amount or if a qualitative assessment is not performed, then we would perform the quantitative analysis to determine the fair value of the asset. If we conclude, based on our assessment, that the asset’s fair value is less than its carrying value, then an impairment charge is recorded in the amount of the excess.
Implementation Costs Incurred in Cloud Computing Arrangements that are Service Contracts
Implementation Costs Incurred in Cloud Computing Arrangements that are Service Contracts
Our cloud computing arrangements that are service contracts primarily consist of arrangements with third party vendors for our internal use of their software applications that they host. We defer implementation costs incurred in relation to such arrangements, including costs for software application coding, configuration, integration and customization, while associated process reengineering, training and maintenance costs are expensed. Subsequent implementation costs are deferred only to the extent that they constitute major enhancements. The short-term portion of deferred costs are included in prepaid expenses and other current assets in the consolidated balance sheets, while the long-term portion of deferred costs are included in deposits and other noncurrent assets. Amortized implementation costs incurred in cloud computing arrangements that are service contracts are recognized in selling, general and administrative expenses, or cost of goods sold in the case of amortized implementation costs associated with the distribution center, in the consolidated statements of operations and comprehensive income using the straight-line method over one to seven years, which generally represents the noncancellable terms of the cloud computing arrangements, plus any optional renewal periods that we are reasonably certain to exercise. Deferred implementation costs are subject to assessment for potential impairment whenever events or changes in circumstances indicate that the carrying values may not be recoverable.
Loyalty Program
Loyalty Program
We operate our loyalty program, Torrid Rewards, in all our stores and on www.torrid.com. Under this program, customers accumulate points based on purchase activity and qualifying non-purchase activity and upon reaching a certain point level, customers can earn awards that may only be redeemed for merchandise. Unredeemed points typically expire after 13 months without additional purchase and qualifying non-purchase activity and unredeemed awards typically expire 45 days after issuance. We use historical redemption rates to estimate the value of future award redemptions and we recognize the estimated value of these future awards as a reduction of revenue in the consolidated statements of operations and comprehensive income in the period the points are earned by the customer.
Self-Insurance
Self-Insurance
We are self-insured for certain losses related to medical and workers' compensation claims although we maintain stop loss coverage with third party insurers to limit our total liability exposure. In general, our self-insurance reserves are recorded on an undiscounted basis. The estimate of our self-insurance liability involves uncertainty since we must use judgment to estimate the ultimate cost that will be incurred to settle reported claims and unreported claims for incidents incurred but not reported as of the balance sheet date. When estimating our self-insurance liability, we consider a number of factors, which include historical claim experience and valuations provided by independent third party actuaries. While the ultimate amount of claims incurred is dependent on future developments, we believe recorded reserves are adequate to cover the future payment of claims. However, it is possible that recorded reserves may not be adequate to cover the future payment of claims. Adjustments, if any, to estimates recorded resulting from ultimate claim payments will be reflected in our consolidated statements of operations and comprehensive income in the periods in which such adjustments are known.
Comprehensive Income
Comprehensive Income
Comprehensive income includes all changes in equity during a period except those that resulted from investments by, or distributions to, stockholders. Other comprehensive income refers to revenues, expenses, gains and losses that, under GAAP, are included in comprehensive income, but excluded from net income as these amounts are recorded directly as an adjustment to stockholders' deficit. Components of our comprehensive income include net income and foreign currency translation adjustments.
Foreign Currency Translation
Foreign Currency Translation
The functional currency for our wholly owned foreign subsidiaries included in these consolidated financial statements that are domiciled outside of the United States is the applicable local currency. Assets and liabilities of our foreign subsidiaries are translated into United States dollars at the exchange rate in effect on the balance sheet date. Revenues and expenses are translated at the average rate in effect during the period. Unrealized translation gains and losses are recorded as a cumulative translation adjustment, which is included in the consolidated statements of stockholders' deficit as a component of accumulated other comprehensive income. Adjustments that arise from exchange rate changes on transactions denominated in a currency other than the local currency are included in selling, general and administrative expenses in the consolidated statements of operations and comprehensive income as incurred.
Share Repurchases
Share Repurchases
We have elected to retire shares repurchased to date. Shares retired become part of the pool of authorized but unissued shares. We have elected to record the purchase price of the retired shares in excess of par value, including transaction costs, directly as an increase in accumulated deficit.
Revenue Recognition
Revenue Recognition
We recognize revenue when our performance obligations under the terms of a contract or an implied arrangement with a customer are satisfied, which is when the merchandise is transferred to the customer and the customer obtains control of it. The amount of revenue we recognize reflects the total consideration we expect to receive for the merchandise, which is the transaction price. For arrangements that contain multiple performance obligations, we allocate the transaction price to each performance obligation on a relative standalone selling price basis.
At our retail store locations, we satisfy our performance obligation and recognize revenue at the point in time when a customer takes possession of the merchandise and tenders payment at the point-of-sale register. For e-Commerce sales shipped to a customer from our distribution center, or from a retail store location (ship from store), we satisfy our performance obligation and recognize revenue upon shipment, which is the point in time the customer obtains control of the merchandise after payment has been tendered. Income we receive from customers for shipping and handling is recognized as a component of revenue upon shipment of merchandise to the customer. We satisfy our performance obligation and recognize revenue from e-Commerce sales shipped to a retail store location from our distribution center, or fulfilled from merchandise already located at a retail store location (buy-online-pickup-in-store), at the point in time when the customer retrieves the merchandise from within the retail store location or at a retail store curbside.
If a customer earns loyalty program points in connection with the retail store or e-Commerce sales transactions described above, then we have a remaining performance obligation and cannot recognize all the revenue. A portion of the revenue is allocated to the loyalty program points earned during the transaction. We satisfy our performance obligation and recognize revenue allocated to these loyalty program points and the resulting awards at the point in time when the awards are redeemed for merchandise, when we determine that they will not be redeemed, or when the awards and points expire.
We satisfy our performance obligation and recognize revenue from gift cards and store merchandise credits at the point in time when the customer presents the gift cards and store merchandise credits for redemption. Gift card breakage is income recognized due to the non-redemption of a portion of gift cards sold by us for which a liability was recorded in prior periods. We recognize estimated gift card breakage over time as a component of net sales in proportion to the pattern of rights exercised by the customer as reflected in actual gift card redemption patterns over the period. Our estimated gift card breakage rate is approximately 4%. While customer redemption patterns result in estimated gift card breakage, changes in our customers’ behavior could impact the amount that ultimately is unused and could affect the amount recognized as a component of net sales. During fiscal years 2024, 2023 and 2022, we recognized $0.8 million, $0.9 million and $1.0 million, respectively, of estimated gift card breakage as a component of net sales.
We are required to estimate certain amounts included in a contract or an implied arrangement with a customer which add variability to the transaction price. Under certain conditions, we are obligated to accept customer returns for most of our merchandise. Sales returns reduce the revenue we expect to receive for merchandise and therefore add variability to the transaction price. Based on historical return pattern experience, we reasonably estimate the amount of merchandise expected to be returned and exclude it from revenue. Similarly, losses we bear arising from uncollectible customer credit card payments are recorded as a reduction of revenue as they reduce the revenue we expect to receive for the merchandise.
We recognize a contract liability when we receive consideration from a customer before our performance obligations under the terms of a contract or an implied arrangement with the customer are satisfied. Consequently, we consider our remaining performance obligations to be representative of our contract liability, most of which is not expected to last for more than one year and has therefore been classified as current. Our contract liability balances increase as gift cards and store merchandise credits are purchased and received by the customer; and as loyalty points are earned based on purchase activity and qualifying non-purchase activity. Contract liability balances decrease as gift cards and store merchandise credits are redeemed for merchandise or when we determine that they will not be redeemed; as loyalty points expire or when we determine that they will not be converted into a loyalty award; and as loyalty awards are redeemed for merchandise or expire.
Sales taxes collected from customers and remitted directly to governmental authorities are not considered revenue and are excluded from the transaction price.
We have an agreement with a third party to provide customers with private label credit cards ("Credit Card Agreement"). Each private label credit card ("PLCC") bears the logo of the Torrid brand and can only be used at our store locations and on www.torrid.com. A third party financing company is the sole owner of the accounts issued under the PLCC program and absorbs the losses associated with non-payment by the PLCC holders and a portion of any fraudulent usage of the accounts. Pursuant to the Credit Card Agreement, we are eligible to receive royalties, profit-sharing and marketing and promotional funds from the third party financing company ("PLCC Funds") based on usage of the PLCCs. These PLCC Funds are recorded as a component of net sales in the consolidated statements of operations and comprehensive income.
Cost of Goods Sold, Vendor Allowances and Shipping and Handling Costs
Cost of Goods Sold
Cost of goods sold includes: merchandise costs; freight; inventory shrinkage; payroll expenses associated with the merchandising and distribution departments; distribution center expenses, including rent, common area maintenance ("CAM") charges, real estate taxes, depreciation and amortization, utilities, supplies and maintenance; and store occupancy expenses, including rents, CAM charges, heating, ventilation and air conditioning ("HVAC") charges, real estate taxes and depreciation.
Vendor Allowances
We receive certain allowances from our vendors primarily related to damaged merchandise, markdowns and pricing. Allowances received from vendors related to damaged merchandise and pricing are reflected as a reduction of inventory in the period they are received and allocated to cost of goods sold during the period in which the items are sold. Markdown allowances received from vendors are reflected as reductions to cost of goods sold in the period they are received if the goods have been sold or marked down, or as a reduction of inventory if the goods have not yet been sold.
Shipping and Handling Costs
We classify shipping and handling costs in costs of goods sold in the consolidated statements of operations and comprehensive income. We account for shipping and handling activities that occur after the customer has obtained control of merchandise as a fulfillment cost rather than an additional promised service.
Selling, General and Administrative Expenses
Selling, General and Administrative Expenses
Selling, general and administrative expenses include: payroll expenses associated with stores and e-Commerce; store and e-Commerce operating expenses other than store occupancy; store pre-opening costs; credit card processing fees; share-based compensation; payroll; depreciation and amortization and other expenses associated with headquarters and administrative functions.
Marketing Expenses
Marketing Expenses
Marketing expenses are expensed as incurred. Costs associated with communicating advertising that has been produced, such as television and webisodes, are recorded in prepaid expenses and other current assets in the consolidated balance sheets and are expensed the first time each advertising event takes place. Marketing expenses include photographic production, television, store and brand marketing, costs associated with special events such as model searches, and targeted online performance marketing costs such as retargeting, paid search/product listing advertising, and social media advertisements.
Store Pre-Opening Costs
Store Pre-Opening Costs
Costs incurred in connection with the opening of new stores, store remodels or relocations are expensed as incurred.
Leases
Leases
We consider an agreement to be or contain a lease if it conveys us as the lessee with the right to control the use of an identified property, plant and equipment asset for a period of time in exchange for consideration. Based on these criteria, we as the lessee have operating lease agreements with lessors for our retail stores, distribution center and headquarter office space; and vehicles and equipment; under primarily non-cancelable leases with terms ranging from approximately one to 17 years.
Certain of our operating lease agreements contain one or more options to extend the leases at our sole discretion. However, the periods covered by the options to extend the leases of our retail stores, vehicles and equipment are not recognized as part of the associated right of use ("ROU") assets and lease liabilities, as we are not reasonably certain to exercise the options. The periods covered by the options to extend the leases of our distribution center and headquarter office space are recognized as part of the associated ROU assets and lease liabilities, as we are reasonably certain to exercise the options due to the significant effort and investment it would take to move out of these locations. Some of our operating lease agreements contain options to terminate the lease under certain conditions.
The retail space leases provide for rents based upon the greater of the minimum annual rental amounts or a percentage of annual store sales volume. Certain leases provide for increasing minimum annual rental amounts. We consider rents based upon a percentage of annual store sales volume, and other rent-related payments that generally vary because of changes in facts and circumstances (other than due to the passage of time), to be variable lease payments. Variable lease payments associated with retail space leases are recognized as occupancy costs within cost of goods sold in the consolidated statements of operations and comprehensive income in the period in which the obligation for those payments is incurred. We generally consider all other
lease payments to be fixed in nature and the sum of all the discounted remaining fixed payments in the lease terms make up the lease liabilities in our consolidated balance sheet (if the lease terms are longer than 12 months).
Our operating lease agreements do not contain any residual value guarantees or restrictive covenants, and we have not entered into any sublease agreements, lease agreements with related parties, or build-to-suit arrangements that may create significant rights and obligations for us.
We discount the fixed lease payments that make up the lease liabilities using an incremental borrowing rate ("IBR"), as the rates implicit in our leases are not readily determinable. The IBR is the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The determination of the IBR for each lease term incorporates various inputs and assumptions including our publicly available credit rating, credit spreads of other publicly traded debt issued by companies with a similar credit rating to ours and a risk-free interest rate. All inputs and assumptions and corresponding IBRs are highly subjective.
We choose not to separate non-lease components (such as CAM charges and HVAC charges), from lease components (such as fixed minimum rent payments), and instead account for each separate lease component and the non-lease components associated with that lease component as a single lease component. We do not apply ASU 2016-02, Leases, and all related guidance (ASC 842) requirements to leases that have lease terms of 12 months or less upon commencement, and instead recognize short-term lease payments, if applicable, in the consolidated statements of operations and comprehensive income on a straight-line basis over the lease term.
Income Taxes
Income Taxes
We account for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting bases and tax bases of assets and liabilities and are measured using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax asset or liability is expected to be realized or settled. Deferred tax assets are reduced by valuation allowances if we believe it is more likely than not that some portion or the entire deferred tax asset will not be realized.
Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in tax rate is recognized through continuing operations in the period that includes the enactment date of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future.
We prescribe a recognition threshold and a measurement attribute for the consolidated financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. We include interest and penalties related to uncertain tax positions in income tax expense in the consolidated statements of operations and comprehensive income.
The amount of income taxes we pay may be subject to periodic audits by the Internal Revenue Service ("IRS") and other taxing authorities. These audits may challenge certain of our tax positions, such as the timing and amount of deductions and allocation of taxable income to various jurisdictions.
We recognize tax liabilities for our estimate of the potential outcome of any uncertain tax issue, which is subject to our assessment of the relevant risks, facts and circumstances existing at the time, and we adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense and the effective tax rate in the period in which the new information becomes available.
We continue to treat undistributed earnings of our foreign subsidiary as indefinitely reinvested according to our current operating plans and no deferred tax liability has been recorded for potential future taxes related to such earnings. According to current tax law, any future dividends paid from our foreign subsidiary will not be subject to income tax in the United States, except for withholding taxes and state taxes, which are not material.
Share-Based Compensation
Share-Based Compensation
On June 22, 2021, our Board of Directors (the "Board") adopted the Torrid Holdings Inc. 2021 Long-Term Incentive Plan (the "2021 LTIP"), for employees, consultants and directors. The 2021 LTIP provides for the grant of stock options, restricted stock and restricted stock units ("RSUs"), among other types of awards, all of which are accounted for in accordance with ASC 718, Compensation-Stock Compensation. We measure share-based compensation cost at the grant date based on the fair value of the award and recognize share-based compensation cost as expense over the vesting period. As share-based compensation expense recognized in the consolidated statements of operations is based on awards ultimately expected to vest, the amount of expense has been reduced for actual forfeitures as they occur.
Stock options are valued utilizing a Black-Scholes option pricing model ("OPM"). The OPM used to value the stock options incorporates various assumptions, including dividend yield, expected volatility, risk-free interest rate and expected term of the stock options. The expected volatility is estimated based on the historical volatility of a select peer group of similar publicly traded companies for a term that is consistent with the expected term of the stock options. The risk-free interest rates are based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected term of the stock options. The expected term of the stock options represents the estimated period of time until exercise and is calculated using the simplified method which deems the term to be the average of the time-to-vesting and the contractual life of the options. The grant date fair value of restricted stock and RSUs is based on the closing price per share of our common stock on the grant date. We recognize compensation expense for time-based awards on a straight-line basis and for performance-based awards on the graded-vesting method over the vesting period of the awards.
Restricted cash units ("RCUs") are awarded to certain employees, non-employee directors and consultants and represent the right to receive a cash payment at the end of a vesting period, subject to the employee's continued employment or service as a director or consultant. In general, RCUs vest in equal installments each year over four years. RCUs are cash-settled with the value of each vested RCU equal to the lower of the closing price per share of our common stock on the vesting date or a specified per share price cap. We determined that RCUs are in-substance liabilities accounted for as liability instruments in accordance with ASC 718, Compensation—Stock Compensation, due to this cash settlement feature. RCUs are remeasured based on the closing price per share of our common stock at the end of each reporting period.
Earnings Per Share
Earnings Per Share
Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is applicable only in periods of net income and is computed by dividing net income by the weighted average number of common shares outstanding for the period and potentially dilutive common share equivalents outstanding for the period. Periods of net loss require the diluted computation to be the same as the basic computation, as all potentially dilutive securities would be anti-dilutive.
Employee Benefit Plan and Deferred Compensation Plan
Employee Benefit Plan
On August 1, 2015, we adopted the Torrid 401(k) Plan ("401(k) Plan"). Effective November 1, 2024, we amended the 401(k) Plan to allow employees employed by us for one month and who are at least 21 years of age to participate. Prior to this amendment, all employees who had been employed by us for at least 200 hours and were at least 21 years of age were eligible to participate. Employees may contribute up to 80% of their eligible compensation to the 401(k) Plan, subject to a statutorily prescribed annual limit. We may at our discretion contribute certain amounts to eligible employees' accounts. Effective January 1, 2025, we enhanced our contributions to 100% of the first 3%, and 50% of the next 2%, of participants' eligible contributions into their 401(k) Plan accounts. Prior to this enhancement, we contributed 50% of the first 4% of participants' eligible contributions into their 401(k) Plan accounts.
Deferred Compensation Plan
On August 1, 2015, we established the Torrid Management Deferred Compensation Plan ("Deferred Compensation Plan") for the purpose of providing highly compensated employees a program to meet their financial planning needs. The Deferred Compensation Plan provided participants with the opportunity to defer up to 80% of their base salary and up to 100% of their annual earned bonus, all of which, together with the associated investment returns, were 100% vested from the outset. The Deferred Compensation Plan was designed to be exempt from most provisions of the Employee Retirement Security Act of 1974, as amended, and we contributed certain amounts to eligible employees' accounts at our discretion. In December of 2024, our Board approved freezing employee participation, employee deferrals, discretionary company credits and matching contributions, effective December 31, 2024. We did not have any assets of the Deferred Compensation Plan and all existing
deferrals and associated earnings held in the plan continue to operate under the plan's rules. Prior to January 1, 2025, to the extent participants were ineligible to receive contributions from participation in our 401(k) Plan, we contributed 50% of the first 4% of participants' eligible contributions into their Deferred Compensation Plan accounts.
Accounting Standards
Recently Adopted Accounting Standards in Fiscal Year 2024
In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 affects reportable segment disclosure requirements, primarily by requiring enhanced disclosures about significant segment expenses that are regularly provided to the CODM on an interim and annual basis. We adopted this guidance for the fiscal year ended February 1, 2025 and accordingly updated our segment disclosure in "Note 2—Summary of Significant Accounting Policies." There was no impact on our results of operations, cash flows and financial condition as a result of adopting this guidance.
Accounting Standards Not Yet Adopted
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). The ASU includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. ASU 2023-09 will be effective for us for fiscal year ended February 1, 2026, with the option to early adopt at any time prior to the effective date and will require adoption on either a prospective or retrospective basis. We are currently evaluating the impact of the standard on our financial statements and disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statements Expenses (“ASU 2024-03”). The ASU is intended to improve disclosures about a public business entity's expenses, primarily through additional disaggregation of income statement expenses. ASU 2024-03 will be effective for the annual period beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027, with the option to early adopt at any time prior to the effective date and should be applied either prospectively to financial statements issued for reporting periods after the effective date or retrospectively to any or all prior periods presented in the financial statements. We are currently evaluating the impact of the standard on our financial statements and disclosures.
We have considered all other recent accounting pronouncements and have concluded that there are no other recent accounting pronouncements not yet adopted that are applicable to us, based on current information.
v3.25.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Feb. 01, 2025
Accounting Policies [Abstract]  
Schedule of Impact of Change In Accounting Principle
The impact of this change in accounting principle is reflected in the tables below (in thousands):
Fiscal Year Ended January 29, 2022
As Previously ReportedChange in
Accounting
Principle
As Adjusted
Net sales$1,278,794 $18,477 $1,297,271 
Cost of goods sold759,826 — 759,826 
Gross profit518,968 18,477 537,445 
Selling, general and administrative expenses420,932 18,477 439,409 
Marketing expenses52,654 — 52,654 
Income from operations$45,382 $— $45,382 
Schedule of Segment Reporting
The following table details the segment information regularly provided to the CODM (in thousands):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
Net sales$1,103,737 $1,151,945 $1,288,144 
Less:
Cost of goods sold (A)
655,529 711,685 795,411 
Selling, general and administrative expenses (B)
285,204 279,358 282,935 
Depreciation and amortization (C)
35,721 36,484 36,074 
Shared-based compensation7,634 8,042 9,980 
Marketing expenses54,231 55,499 59,941 
Interest expense35,633 39,203 29,736 
Provision for income taxes5,285 6,416 21,473 
Interest income, net of other (income) expense(28)(90)207 
Other expenses (D)
8,210 3,729 2,178 
Net income$16,318 $11,619 $50,209 
   
(A)Cost of goods sold as provided to the CODM exclude depreciation and amortization and share-based compensation, which are presented separately.
(B)Selling, general and administrative expenses as provided to the CODM exclude depreciation and amortization, share-based compensation and other expenses, which are presented separately.
(C)Depreciation and amortization excludes amortization of debt issuance costs and original issue discount that are reflected in interest expense.
(D)Other expenses include severance costs for certain key management positions, certain transaction and litigation fees (including certain settlement costs), and the reimbursement of certain management expenses, primarily for travel, incurred by Sycamore on our behalf, which are not considered to be part of our core business.
Schedule of Depreciation Expense
Depreciation expense is calculated using the straight-line method over the following estimated useful lives:
Leasehold improvements  
shorter of the 3- to 10-year estimated useful life or the respective lease term
Furniture, fixtures and equipment  
2 to 10 years
Software and licenses  
3 to 7 years
Property and equipment are summarized as follows (in thousands):
February 1, 2025February 3, 2024
Property and equipment, at cost
Leasehold improvements$187,792 $187,114 
Furniture, fixtures and equipment118,901 122,746 
Software and licenses15,099 14,809 
Construction-in-progress1,438 3,241 
323,230 327,910 
Less: Accumulated depreciation and amortization(245,561)(224,394)
Property and equipment, net$77,669 $103,516 
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 consist of the following (in thousands):
February 1, 2025February 3, 2024
Prepaid and other information technology expenses$12,946 $10,975 
PLCC Funds receivable2,810 2,759 
Prepaid advertising1,706 389 
Prepaid casualty insurance2,213 2,489 
Other4,832 5,617 
Prepaid expenses and other current assets$24,507 $22,229 
v3.25.1
Property and Equipment (Tables)
12 Months Ended
Feb. 01, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment
Depreciation expense is calculated using the straight-line method over the following estimated useful lives:
Leasehold improvements  
shorter of the 3- to 10-year estimated useful life or the respective lease term
Furniture, fixtures and equipment  
2 to 10 years
Software and licenses  
3 to 7 years
Property and equipment are summarized as follows (in thousands):
February 1, 2025February 3, 2024
Property and equipment, at cost
Leasehold improvements$187,792 $187,114 
Furniture, fixtures and equipment118,901 122,746 
Software and licenses15,099 14,809 
Construction-in-progress1,438 3,241 
323,230 327,910 
Less: Accumulated depreciation and amortization(245,561)(224,394)
Property and equipment, net$77,669 $103,516 
v3.25.1
Implementation Costs Incurred in Cloud Computing Arrangements that are Service Contracts (Tables)
12 Months Ended
Feb. 01, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Deferred Implementation Costs
Deferred implementation costs incurred in cloud computing arrangements that are service contracts are summarized as follows (in thousands):
February 1, 2025February 3, 2024
Internal use of third party hosted software, gross$42,208 $28,516 
Less: Accumulated amortization(18,229)(11,360)
Internal use of third party hosted software, net$23,979 $17,156 
v3.25.1
Intangible Assets (Tables)
12 Months Ended
Feb. 01, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Indefinite-Lived Intangible Assets
Indefinite-lived intangible assets are summarized as follows (in thousands):
February 1, 2025February 3, 2024
GrossAccumulated
Amortization
Net Book
Value
GrossAccumulated
Amortization
Net Book
Value
Indefinite-lived intangible assets:
Trade name$8,400 $— $8,400 $8,400 $— $8,400 
Total$8,400 $— $8,400 $8,400 $— $8,400 
v3.25.1
Accrued and Other Current Liabilities (Tables)
12 Months Ended
Feb. 01, 2025
Payables and Accruals [Abstract]  
Schedule of Accrued and Other Current Liabilities
Accrued and other current liabilities consist of the following (in thousands):
February 1, 2025February 3, 2024
Accrued inventory-in-transit$35,177 $23,227 
Accrued payroll and related expenses25,313 13,780 
Accrued loyalty program10,887 12,526 
Gift cards13,676 12,974 
Accrued sales return allowance2,961 6,018 
Accrued freight5,092 5,470 
Accrued marketing3,120 3,862 
Accrued sales and use tax2,745 3,354 
Accrued lease costs2,817 3,306 
Accrued self-insurance liabilities2,926 3,313 
Accrued purchases of property and equipment768 3,121 
Deferred revenue2,777 1,949 
Term loan interest payable2,486 3,548 
Accrued legal4,668 993 
Other10,330 10,309 
Accrued and other current liabilities$125,743 $107,750 
v3.25.1
Leases (Tables)
12 Months Ended
Feb. 01, 2025
Leases [Abstract]  
Schedule of Lease Costs and Other Supplementary Information Related to Leases
Our lease costs consisted of the following (in thousands):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
Fixed operating lease cost$53,109 $54,446 $52,940 
Short-term lease cost129 143 186 
Variable lease cost19,821 19,147 17,951 
Total lease cost$73,059 $73,736 $71,077 
Other supplementary information related to our leases is reflected in the table below (in thousands except lease term and discount rate data):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$60,475 $61,360 $58,050 
Right-of-use assets obtained in exchange for new operating lease liabilities$12,126 $25,822 $19,113 
Increase (decrease) in right-of-use assets resulting from operating lease modifications or remeasurements$8,373 $837 $(9,007)
Weighted average remaining lease term - operating leases7 years6 years6 years
Weighted average discount rate - operating leases%%%
Schedule of Maturity Analysis of Operating Lease Liabilities
A maturity analysis of our operating lease liabilities, for lease terms that include periods covered by options to extend some of our leases that we are reasonably certain of being executed, for each of the next five years and thereafter, reconciled to our operating lease liabilities recognized in the consolidated balance sheet as of February 1, 2025, is as follows (in thousands):
Fiscal Year Ending
 
2025$52,367 
202642,925 
202731,018 
202823,086 
202917,540 
Thereafter62,189 
Total operating lease liabilities$229,125 
Less: Imputed interest(54,139)
Total operating lease liabilities$174,986 
Less: Current portion of operating lease liabilities(40,505)
Noncurrent operating lease liabilities$134,481 
v3.25.1
Revenue Recognition (Tables)
12 Months Ended
Feb. 01, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
Our revenue, disaggregated by product category, consists of the following (in thousands):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
Apparel$989,239 $1,024,501 $1,119,336 
Non-apparel82,526 93,462 134,800 
Other31,972 33,982 34,008 
Total net sales$1,103,737 $1,151,945 $1,288,144 
v3.25.1
Debt Financing Arrangements (Tables)
12 Months Ended
Feb. 01, 2025
Debt Disclosure [Abstract]  
Schedule of Debt Financing Arrangements
Our debt financing arrangements consist of the following (in thousands):
February 1, 2025February 3, 2024
ABL Facility$— $7,270 
Term loan
Amended Term Loan Credit Agreement293,125 310,625 
Less: current portion of unamortized original issue discount and debt financing costs(1,356)(1,356)
Less: noncurrent portion of unamortized original issue discount and debt financing costs(3,216)(4,572)
Total term loan outstanding, net of unamortized original issue discount and debt financing costs288,553 304,697 
Less: current portion of term loan, net of unamortized original issue discount and debt financing costs(16,144)(16,144)
Total term loan, net of current portion and unamortized original issue discount and debt financing costs$272,409 $288,553 
Schedule of Principal Repayments of Debt
Fixed mandatory principal repayments due on the outstanding term loan are as follows as of February 1, 2025 (in thousands):
Fiscal Year Ending
2025$17,500 
202617,500 
202717,500 
2028240,625 
$293,125 
v3.25.1
Income Taxes (Tables)
12 Months Ended
Feb. 01, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Before Provision for Income Taxes
The domestic and foreign income before provision for income taxes during fiscal years 2024, 2023 and 2022 is as follows (in thousands):
 Fiscal Year Ended
 February 1, 2025February 3, 2024January 28, 2023
Domestic$17,424 $17,604 $69,273 
Foreign4,179 431 2,409 
Income before provision for income taxes
$21,603 $18,035 $71,682 
Schedule of Components of Provision for Income Taxes
The composition of the provision for income taxes during fiscal years 2024, 2023 and 2022 is as follows (in thousands):
 Fiscal Year Ended
 February 1, 2025February 3, 2024January 28, 2023
Current:
Federal$11,565 $9,108 $14,442 
State1,620 2,795 4,693 
Foreign21 186 487 
$13,206 $12,089 $19,622 
Deferred:
Federal$(7,387)$(5,193)$1,632 
State(777)(513)
Foreign243 33 215 
(7,921)(5,673)1,851 
Total income tax provision$5,285 $6,416 $21,473 
Schedule of Deferred Tax Assets and Liabilities
Significant components of our deferred tax assets and liabilities are as follows (in thousands):
February 1, 2025February 3, 2024
Deferred tax assets (liabilities):
Inventory$1,483 $1,254 
Loyalty reserve2,874 3,318 
Accrued bonus2,032 250 
Lease liability38,729 45,308 
Share-based compensation2,324 1,355 
Interest expense limitation5,658 3,840 
Other deferred tax assets7,335 7,211 
ROU assets(33,182)(38,053)
Intangible assets(2,065)(2,062)
Depreciation(6,531)(11,877)
Other deferred tax liabilities(2,037)(1,863)
Total net deferred tax assets$16,620 $8,681 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the provision for income taxes to the statutory tax rate is as follows:
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
Statutory federal rate21.0 %21.0 %21.0 %
State and local taxes, net of federal benefit3.6 10.9 5.3 
Share-based compensation0.1 5.1 2.1 
Liability for uncertain tax positions(0.6)(1.5)(0.2)
Information technology services charge— — 0.4 
Limitation on Section 162(m) officers0.9 0.5 1.3 
Foreign derived intangible income(0.2)(0.3)(0.2)
Other differences, net(0.3)(0.1)0.3 
Effective income tax rate24.5 %35.6 %30.0 %
Schedule of Unrecognized Tax Benefits
The following table reconciles the amount recorded for the liability for income taxes associated with unrecognized tax benefits as of the end of fiscal years 2024, 2023 and 2022 (in thousands):
 Fiscal Year Ended
 February 1, 2025February 3, 2024January 28, 2023
Unrecognized tax benefits at the beginning of the fiscal year$1,925 $2,996 $3,293 
(Reductions) additions:
Tax positions related to the current period— 59 
Tax positions related to the prior period154 104 (116)
Tax positions settled or statute of limitations lapsed(262)(1,175)(240)
Unrecognized tax benefits at the end of the fiscal year$1,820 $1,925 $2,996 
v3.25.1
Share-Based Compensation (Tables)
12 Months Ended
Feb. 01, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Share-based Compensation Expense
Our share-based compensation expense, by award type, consists of the following (in thousands):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
Restricted stock units$2,391 $2,405 $1,818 
Restricted stock awards128 2,018 6,304 
Performance-based restricted stock units124 711 568 
Stock options1,787 1,537 972 
Restricted cash units3,009 1,209 — 
Employee stock purchase plan195 162 318 
Share-based compensation expense before income taxes7,634 8,042 9,980 
Income tax detriment1,831 923 340 
Net share-based compensation expense$9,465 $8,965 $10,320 
Schedule of Restricted Stock Units Activity And Performance Stock Units Activity
RSU activity, including IPO Awards and PSUs, under the 2021 LTIP consists of the following (in thousands except per share amounts):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
SharesWeighted average grant date value per shareSharesWeighted average grant date value per shareSharesWeighted average grant date value per share
Nonvested at the beginning of the fiscal year1,953 $4.14 1,386 $6.55 278 $26.75 
Granted 659 $4.67 1,312 $3.13 1,371 $5.07 
Vested(541)$4.72 (249)$8.57 (66)$25.65 
Forfeited(588)$3.76 (496)$5.98 (197)$18.07 
Nonvested at the end of the fiscal year1,483 $4.32 1,953 $4.14 1,386 $6.55 
Schedule of Weighted Average Grant Date
The weighted average grant date fair value of the PSUs was estimated at the grant date using a Monte Carlo simulation following a Geometric Brownian Motion with the following weighted average assumptions:
Fiscal Year Ended
February 1, 2025 (1)
February 3, 2024January 28, 2023
Dividend yield
— %— %— %
Expected volatility(2)
— %68.4 %70.7 %
Risk-free interest rate(3)
— %3.8 %3.2 %
Expected term(4)
3 years3 years
Grant date fair value per share$— $1.66 $4.15 
(1)    We did not grant any PSUs in fiscal year 2024.
(2)     The expected volatility is estimated based on the historical volatility of a select peer group of similar publicly traded companies for a term that is consistent with the expected term of the PSUs.
(3)    The risk-free interest rates are based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected term of the PSUs.
(4)    The expected term of the PSUs represents the time period from the grant date and the full vesting date.
The weighted average grant date fair value of stock option awards granted during fiscal year 2024, 2023 and 2022 was $2.77, $1.91 and $3.25 per option, respectively, and was estimated at the grant date using the OPM with the following weighted average assumptions:
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
Dividend yield— %— %— %
Expected volatility(1)
59.1 %60.4 %59.0 %
Risk-free interest rate(2)
4.4 %3.7 %3.1 %
Expected term(3)
6.25 years6.25 years6.25 years
Grant date fair value per share$2.77 $1.91$3.25
(1)    The expected volatility is estimated based on the historical volatility of a select peer group of similar publicly traded companies for a term that is consistent with the expected term of the stock options.
(2)    The risk-free interest rates are based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected term of the stock options.
(3)    The expected term of the stock options represents the estimated period of time until exercise and is calculated using the simplified method.
Schedule of Restricted Stock Award Activity
RSA activity under the 2021 LTIP consists of the following (in thousands except per share amounts):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
SharesWeighted average grant date fair value per shareSharesWeighted average grant date fair value per shareSharesWeighted average grant date fair value per share
Nonvested at the beginning of the fiscal year$27.00 211 $27.00 532 $27.00 
Granted— — — 
Vested(5)$27.00 (102)$27.00 (241)$27.00 
Forfeited— $— (104)$27.00 (80)$27.00 
Nonvested at the end of the fiscal year— $— $27.00 211 $27.00 
Schedule of Stock Option Activity
Stock option activity under the 2021 LTIP consists of the following (in thousands except per share and contractual life amounts):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
SharesWeighted average exercise price per shareSharesWeighted average exercise price per shareSharesWeighted average exercise price per share
Outstanding at the beginning of the fiscal year2,352 $4.98 1,444 $7.38 337 $21.03 
Granted1,048 $4.60 1,514 $3.19 1,420 $5.58 
Exercised(133)$3.52 — — 
Expired / forfeited(559)$4.70 (606)$6.56 (313)$13.90 
Outstanding at the end of the fiscal year2,708 $4.95 2,352 $4.98 1,444 $7.38 
Vested and expected to vest at the end of the fiscal year2,708 $4.95 2,352 $4.98 1,444 $7.38 
Exercisable at the end of the fiscal year677 $6.41 307 $8.73 44 $21.03 
v3.25.1
Other Noncurrent Liabilities (Tables)
12 Months Ended
Feb. 01, 2025
Other Liabilities Disclosure [Abstract]  
Schedule of Other Noncurrent Liabilities
Other noncurrent liabilities consist of the following (in thousands):
February 1, 2025February 3, 2024
Noncurrent portion of lease incentives$271 $730 
Noncurrent income taxes payable2,366 2,517 
Deferred PLCC Funds2,958 3,458 
Other noncurrent liabilities$5,595 $6,705 
v3.25.1
Share Repurchases (Tables)
12 Months Ended
Feb. 01, 2025
Equity [Abstract]  
Schedule of Share Repurchase Activity
Share repurchase activity consists of the following (in thousands except share and per share amounts):
Fiscal Year Ended
February 1, 2025February 3, 2024January 28, 2023
Number of shares repurchased— — 4,464,367 
Total cost$— $— $31,700 
Average per share cost including commissions$— $— $7.10 
v3.25.1
Fair Value Measurements (Tables)
12 Months Ended
Feb. 01, 2025
Fair Value Disclosures [Abstract]  
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis
Financial assets and liabilities measured at fair value on a recurring basis as of the end of fiscal year 2024 consisted of the following (in thousands):
February 1,
2025
Quoted Prices
in Active
Markets for
Identical
Items
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets:
Money market funds (cash equivalent)$31,727 $31,727 $— $— 
Total assets$31,727 $31,727 $— $— 
Liabilities:
Deferred compensation plan liability (current)$1,767 $— $1,767 $— 
Deferred compensation plan liability (noncurrent)3,913 — 3,913 — 
Total liabilities$5,680 $— $5,680 $— 
Financial assets and liabilities measured at fair value on a recurring basis as of the end of fiscal year 2023 consisted of the following (in thousands):
February 3,
2024
Quoted Prices
in Active
Markets for
Identical
Items
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets:
Money market funds (cash equivalent)$33 $33 $— $— 
Total assets$33 $33 $— $— 
Liabilities:
Deferred compensation plan liability (noncurrent)$5,474 $— $5,474 $— 
Total liabilities$5,474 $— $5,474 $— 
v3.25.1
Summary of Significant Accounting Policies - Schedule of Impact of Change In Accounting Principle (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Jan. 29, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Net sales $ 1,103,737 $ 1,151,945 $ 1,288,144 $ 1,297,271
Cost of goods sold 690,266 745,967 828,605 759,826
Gross profit 413,471 405,978 459,539 537,445
Selling, general and administrative expenses 302,032 293,331 297,973 439,409
Marketing expenses 54,231 55,499 59,941 52,654
Income from operations $ 57,208 $ 57,148 $ 101,625 45,382
As Previously Reported        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Net sales       1,278,794
Cost of goods sold       759,826
Gross profit       518,968
Selling, general and administrative expenses       420,932
Marketing expenses       52,654
Income from operations       45,382
Change in Accounting Principle        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Net sales       18,477
Cost of goods sold       0
Gross profit       18,477
Selling, general and administrative expenses       18,477
Marketing expenses       0
Income from operations       $ 0
v3.25.1
Summary of Significant Accounting Policies - Segment Reporting (Details)
12 Months Ended
Feb. 01, 2025
segment
Accounting Policies [Abstract]  
Number of reportable segments 1
v3.25.1
Summary of Significant Accounting Policies - Schedule of Reportable Segment (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Jan. 29, 2022
Net sales $ 1,103,737 $ 1,151,945 $ 1,288,144 $ 1,297,271
Cost of goods sold 690,266 745,967 828,605 759,826
Selling, general and administrative expenses 302,032 293,331 297,973 439,409
Marketing expenses 54,231 55,499 59,941 $ 52,654
Interest expense 35,633 39,203 29,736  
Provision for income taxes 5,285 6,416 21,473  
Interest income, net of other (income) expense (28) (90) 207  
Other expenses 8,210 3,729 2,178  
Net income 16,318 11,619 50,209  
Reportable Segment        
Net sales 1,103,737 1,151,945 1,288,144  
Cost of goods sold 655,529 711,685 795,411  
Selling, general and administrative expenses 285,204 279,358 282,935  
Depreciation and amortization 35,721 36,484 36,074  
Shared-based compensation 7,634 8,042 9,980  
Marketing expenses 54,231 55,499 59,941  
Interest expense 35,633 39,203 29,736  
Provision for income taxes 5,285 6,416 21,473  
Interest income, net of other (income) expense (28) (90) 207  
Net income $ 16,318 $ 11,619 $ 50,209  
v3.25.1
Summary of Significant Accounting Policies - Concentration Risks (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Concentration Risk [Line Items]      
Cash and cash equivalents $ 48,523 $ 11,735  
Purchase Benchmark | Supplier Concentration Risk | Supplier One      
Concentration Risk [Line Items]      
Concentration risk, percentage 8.00% 10.00% 15.00%
Purchase Benchmark | Supplier Concentration Risk | Supplier Two      
Concentration Risk [Line Items]      
Concentration risk, percentage   12.00%  
Amounts Due from Third Party Financial Institutions      
Concentration Risk [Line Items]      
Cash and cash equivalents $ 7,900 $ 8,900  
v3.25.1
Summary of Significant Accounting Policies - Property and Equipment (Details)
Feb. 01, 2025
Capitalized Internal-Use Software Costs  
Property, Plant and Equipment [Line Items]  
Estimated useful life 3 years
Leasehold improvements | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 3 years
Leasehold improvements | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 10 years
Furniture, fixtures and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 2 years
Furniture, fixtures and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 10 years
Software and licenses | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 3 years
Software and licenses | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 7 years
v3.25.1
Summary of Significant Accounting Policies - Implementation Costs Incurred in Cloud Computing Arrangements that are Service Contracts (Details)
12 Months Ended
Feb. 01, 2025
Minimum  
Capitalized Contract Cost [Line Items]  
Service contract term 1 year
Maximum  
Capitalized Contract Cost [Line Items]  
Service contract term 7 years
v3.25.1
Summary of Significant Accounting Policies - Loyalty Program (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Accounting Policies [Abstract]      
Unredeemed points, expiration period 13 months    
Unredeemed awards, expiration period 45 days    
Accrued loyalty program $ 10,887 $ 12,526  
Reduction of net sales $ 1,600 $ 900 $ 100
v3.25.1
Summary of Significant Accounting Policies - Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Accounting Policies [Abstract]      
Foreign currency translation adjustment $ 0.6 $ 0.0 $ 0.0
v3.25.1
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Jan. 29, 2022
Disaggregation of Revenue [Line Items]        
Gift card breakage rate (as a percent) 4.00%      
Net sales $ 1,103,737 $ 1,151,945 $ 1,288,144 $ 1,297,271
Gift Cards        
Disaggregation of Revenue [Line Items]        
Net sales $ 800 $ 900 $ 1,000  
v3.25.1
Summary of Significant Accounting Policies - Vendor Allowances (Details) - USD ($)
$ in Millions
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Accounting Policies [Abstract]      
Vendor allowances $ 2.5 $ 3.2 $ 3.8
v3.25.1
Summary of Significant Accounting Policies - Store Pre-Opening Costs (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Accounting Policies [Abstract]      
Pre-opening costs $ 800 $ 2,400 $ 1,200
v3.25.1
Summary of Significant Accounting Policies - Leases (Details)
Feb. 01, 2025
Minimum  
Lessee, Lease, Description [Line Items]  
Lease term (in years) 1 year
Maximum  
Lessee, Lease, Description [Line Items]  
Lease term (in years) 17 years
v3.25.1
Summary of Significant Accounting Policies - Income Taxes (Details)
$ in Millions
Feb. 01, 2025
USD ($)
Accounting Policies [Abstract]  
Deferred tax liability not recognized for undistributed foreign earnings $ 0.0
v3.25.1
Summary of Significant Accounting Policies - Share-Based Compensation (Details)
12 Months Ended
Feb. 01, 2025
Restricted cash units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting period (in years) 4 years
v3.25.1
Summary of Significant Accounting Policies - Employee Benefit Plan (Details)
$ in Millions
11 Months Ended 12 Months Ended
Jan. 01, 2025
Nov. 01, 2024
Dec. 31, 2024
Feb. 01, 2025
USD ($)
hour
Feb. 03, 2024
USD ($)
Jan. 28, 2023
USD ($)
Defined Contribution Plan Disclosure [Line Items]            
Defined Contribution Plan, Tax Status [Extensible Enumeration]       Qualified Plan [Member]    
Age requirement (in years)   21 years   21 years    
Required number of hours | hour       200    
Percentage of maximum employee contribution       80.00%    
Employer matching contribution, percent of match       50.00% 50.00%  
Contributions | $       $ 1.0 $ 0.8 $ 0.8
401(k) Plan            
Defined Contribution Plan Disclosure [Line Items]            
Employer matching contribution, percent of match     50.00%      
Employer matching contribution, percent of participants' eligible contribution     4.00%      
401(k) Plan | Tranche One            
Defined Contribution Plan Disclosure [Line Items]            
Employer matching contribution, percent of match 100.00%          
Employer matching contribution, percent of participants' eligible contribution 3.00%          
401(k) Plan | Tranche Two            
Defined Contribution Plan Disclosure [Line Items]            
Employer matching contribution, percent of match 50.00%          
Employer matching contribution, percent of participants' eligible contribution 2.00%          
v3.25.1
Summary of Significant Accounting Policies - Deferred Compensation Plan (Details) - USD ($)
$ in Millions
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Accounting Policies [Abstract]    
Percentage of maximum annual deferral 80.00%  
Percentage of annual earned bonus eligible for contribution 100.00%  
Percentage of contributions vested from outset 100.00%  
Employer matching contribution, percent of match 50.00% 50.00%
Percentage of eligible contributions 4.00% 4.00%
Deferred compensation liabilities $ 5.7 $ 5.6
Current deferred compensation liabilities $ 1.8 $ 0.1
v3.25.1
Prepaid Expenses and Other Current Assets (Details) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Prepaid and other information technology expenses $ 12,946 $ 10,975
PLCC Funds receivable 2,810 2,759
Prepaid advertising 1,706 389
Prepaid casualty insurance 2,213 2,489
Other 4,832 5,617
Prepaid expenses and other current assets $ 24,507 $ 22,229
v3.25.1
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Property, Plant and Equipment [Line Items]    
Property and equipment, at cost $ 323,230 $ 327,910
Less: Accumulated depreciation and amortization (245,561) (224,394)
Property and equipment, net 77,669 103,516
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, at cost 187,792 187,114
Furniture, fixtures and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, at cost 118,901 122,746
Software and licenses    
Property, Plant and Equipment [Line Items]    
Property and equipment, at cost 15,099 14,809
Construction-in-progress    
Property, Plant and Equipment [Line Items]    
Property and equipment, at cost $ 1,438 $ 3,241
v3.25.1
Property and Equipment - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Property, Plant and Equipment [Abstract]      
Depreciation and other amortization $ 35.7 $ 36.5 $ 36.1
v3.25.1
Implementation Costs Incurred in Cloud Computing Arrangements that are Service Contracts - Schedule of Deferred Implementation Costs (Details) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Internal use of third party hosted software, gross $ 42,208 $ 28,516
Less: Accumulated amortization (18,229) (11,360)
Internal use of third party hosted software, net $ 23,979 $ 17,156
v3.25.1
Implementation Costs Incurred in Cloud Computing Arrangements that are Service Contracts - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]      
Amortization expense $ 6.9 $ 4.6 $ 2.9
v3.25.1
Intangible Assets - Schedule of Indefinite-lived intangible assets (Details) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets $ 8,400 $ 8,400
Trade name    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets $ 8,400 $ 8,400
v3.25.1
Intangible Assets - Narrative (Details)
$ in Thousands
3 Months Ended
Nov. 02, 2024
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
Impairment of indefinite-lived intangible assets $ 0
v3.25.1
Accrued and Other Current Liabilities (Details) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Accrued Expenses And Liabilities [Line Items]    
Accrued inventory-in-transit $ 35,177 $ 23,227
Accrued payroll and related expenses 25,313 13,780
Accrued loyalty program 10,887 12,526
Accrued sales return allowance 2,961 6,018
Accrued freight 5,092 5,470
Accrued marketing 3,120 3,862
Accrued sales and use tax 2,745 3,354
Accrued lease costs 2,817 3,306
Accrued self-insurance liabilities 2,926 3,313
Accrued purchases of property and equipment 768 3,121
Term loan interest payable 2,486 3,548
Accrued legal 4,668 993
Other 10,330 10,309
Accrued and other current liabilities 125,743 107,750
Gift Cards    
Accrued Expenses And Liabilities [Line Items]    
Gift cards and deferred revenue 13,676 12,974
Deferred revenue    
Accrued Expenses And Liabilities [Line Items]    
Gift cards and deferred revenue $ 2,777 $ 1,949
v3.25.1
Leases - Schedule of Lease Costs (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Leases [Abstract]      
Fixed operating lease cost $ 53,109 $ 54,446 $ 52,940
Short-term lease cost 129 143 186
Variable lease cost 19,821 19,147 17,951
Total lease cost $ 73,059 $ 73,736 $ 71,077
v3.25.1
Leases - Schedule of Maturity Analysis (Details) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Leases [Abstract]    
2025 $ 52,367  
2026 42,925  
2027 31,018  
2028 23,086  
2029 17,540  
Thereafter 62,189  
Total operating lease liabilities 229,125  
Less: Imputed interest (54,139)  
Total operating lease liabilities 174,986  
Less: Current portion of operating lease liabilities (40,505) $ (42,760)
Noncurrent operating lease liabilities $ 134,481 $ 155,825
v3.25.1
Leases - Schedule of Other Supplementary Information Related to Leases (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows for operating leases $ 60,475 $ 61,360 $ 58,050
Right-of-use assets obtained in exchange for new operating lease liabilities 12,126 25,822 19,113
Increase (decrease) in right-of-use assets resulting from operating lease modifications or remeasurements $ 8,373 $ 837 $ (9,007)
Weighted average remaining lease term - operating leases 7 years 6 years 6 years
Weighted average discount rate - operating leases 8.00% 7.00% 6.00%
v3.25.1
Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Jan. 29, 2022
Disaggregation of Revenue [Line Items]        
Total net sales $ 1,103,737 $ 1,151,945 $ 1,288,144 $ 1,297,271
Apparel        
Disaggregation of Revenue [Line Items]        
Total net sales 989,239 1,024,501 1,119,336  
Non-apparel        
Disaggregation of Revenue [Line Items]        
Total net sales 82,526 93,462 134,800  
Other        
Disaggregation of Revenue [Line Items]        
Total net sales $ 31,972 $ 33,982 $ 34,008  
v3.25.1
Revenue Recognition - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Loyalty Program      
Disaggregation of Revenue [Line Items]      
Revenue recognized $ 10.7 $ 10.2  
Gift Cards      
Disaggregation of Revenue [Line Items]      
Revenue recognized $ 5.7 $ 6.0  
Revenue Benchmark | Customer Concentration Risk | Sales Channel, E-Commerce      
Disaggregation of Revenue [Line Items]      
Concentration risk, percentage 61.00% 59.00% 61.00%
v3.25.1
Related Party Transactions - Services Agreements with Hot Topic (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 01, 2022
Sep. 30, 2022
Mar. 21, 2019
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Related Party Transaction [Line Items]            
Accounts payable       $ 72,378 $ 46,183  
Affiliated Entity | Amended and Restated Services Agreement with Hot Topic            
Related Party Transaction [Line Items]            
Agreement term (in years)   2 months 3 years      
Affiliated Entity | Various Services with Hot Topic            
Related Party Transaction [Line Items]            
Total costs       2,100 2,000 $ 2,400
Accounts payable       600 200  
Affiliated Entity | Information Technology Services with Hot Topic            
Related Party Transaction [Line Items]            
Total costs           1,600
Costs due from related party       600 1,700 $ 1,000
Due from related parties       100 100  
Affiliated Entity | Third Amended And Restated Services Agreement With Hot Topic            
Related Party Transaction [Line Items]            
Agreement term (in years) 17 months          
Affiliated Entity | Pass-Through Expenses With Hot Topic | Hot Topic Inc.            
Related Party Transaction [Line Items]            
Accounts payable       $ 0 $ 400  
v3.25.1
Related Party Transactions - Sponsor Advisory Services Agreement (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Related Party Transaction [Line Items]      
Accounts payable $ 72,378 $ 46,183  
Payments to related parties (967) (3,412) $ (1,881)
Affiliated Entity | Strategic Planning and Other Related Services with Sycamore      
Related Party Transaction [Line Items]      
Accounts payable 0 0  
Payments to related parties 0 0 0
Affiliated Entity | Reimbursement for Management Expenses with Sycamore      
Related Party Transaction [Line Items]      
Reimbursements due 0 0  
Reimbursements paid $ 0 $ 0 $ 0
v3.25.1
Related Party Transactions - Other Related Party Transactions (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Related Party Transaction [Line Items]      
Accounts payable $ 72,378 $ 46,183  
Purchase Benchmark | Supplier Concentration Risk | Supplier One      
Related Party Transaction [Line Items]      
Concentration risk, percentage (less than) 8.00% 10.00% 15.00%
Purchase of Supplies from MGF Sourcing US, LLC | Affiliated Entity      
Related Party Transaction [Line Items]      
Purchases $ 38,700 $ 56,500 $ 70,000
Accounts payable 7,900 8,900  
Purchase of Supplies from HU Merchandising, LLC | Affiliated Entity      
Related Party Transaction [Line Items]      
Purchases 200 300 $ 500
Accounts payable $ 0 $ 0  
v3.25.1
Debt Financing Arrangements - Schedule of Debt Financing Arrangements (Details) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Debt Instrument [Line Items]    
Less: current portion of term loan, net of unamortized original issue discount and debt financing costs $ (16,144) $ (16,144)
Total term loan, net of current portion and unamortized original issue discount and debt financing costs 272,409 288,553
Line of Credit | Revolving Credit Facility    
Debt Instrument [Line Items]    
ABL Facility 0 7,270
Total term loan outstanding, net of unamortized original issue discount and debt financing costs 0 7,270
Term Loan    
Debt Instrument [Line Items]    
ABL Facility 288,553 304,697
Amended Term Loan Credit Agreement 293,125  
Less: current portion of unamortized original issue discount and debt financing costs (1,356) (1,356)
Less: noncurrent portion of unamortized original issue discount and debt financing costs (3,216) (4,572)
Total term loan outstanding, net of unamortized original issue discount and debt financing costs 288,553 304,697
Less: current portion of term loan, net of unamortized original issue discount and debt financing costs (16,144) (16,144)
Total term loan, net of current portion and unamortized original issue discount and debt financing costs 272,409 288,553
Term Loan | Amended Term Loan Credit Agreement    
Debt Instrument [Line Items]    
Amended Term Loan Credit Agreement $ 293,125 $ 310,625
v3.25.1
Debt Financing Arrangements - Schedule of Principal Repayments of Debt (Details) - Term Loan
$ in Thousands
Feb. 01, 2025
USD ($)
Debt Instrument [Line Items]  
2025 $ 17,500
2026 17,500
2027 17,500
2028 240,625
Total $ 293,125
v3.25.1
Debt Financing Arrangements - Term Loan Credit Agreement (Details) - USD ($)
12 Months Ended
Jun. 14, 2021
Feb. 01, 2025
Feb. 03, 2024
Debt Instrument [Line Items]      
Cash distributions from borrowings $ 131,700,000    
Term Loan      
Debt Instrument [Line Items]      
Interest rate   10.00%  
ABL Facility   $ 288,553,000 $ 304,697,000
Term Loan | Term Loan Credit Agreement      
Debt Instrument [Line Items]      
Aggregate amount of debt 350,000,000    
OID 3,500,000    
Financing costs paid 6,000,000    
Proceeds from issuance of long-term debt $ 346,500,000    
Term Loan | Amended Term Loan Credit Agreement      
Debt Instrument [Line Items]      
Repayment of principal, percentage 1.25%    
Prepayment of principal (in term) 102 days    
Cash flow threshold $ 10,000,000    
Fair value of long term debt   274,100,000  
Interest expense   33,200,000 36,100,000
OID and financing costs   $ 1,400,000 $ 1,400,000
Debt term (in years) 7 years 5 years 6 months  
Term Loan | Amended Term Loan Credit Agreement | Minimum      
Debt Instrument [Line Items]      
Prepayment of principal, percentage 0.00%    
Penalty, percentage 1.00%    
Term Loan | Amended Term Loan Credit Agreement | Maximum      
Debt Instrument [Line Items]      
Prepayment of principal, percentage 50.00%    
Penalty, percentage 2.00%    
Term Loan | Amended Term Loan Credit Agreement | Fed Funds Effective Rate | Base Rate      
Debt Instrument [Line Items]      
Basis spread on variable rate (as a percent) 0.50%    
Term Loan | Amended Term Loan Credit Agreement | Fed Funds Effective Rate | Minimum | Base Rate      
Debt Instrument [Line Items]      
Interest rate floor 1.75%    
Term Loan | Amended Term Loan Credit Agreement | Prime Rate | Minimum | Base Rate      
Debt Instrument [Line Items]      
Interest rate floor 1.75%    
Term Loan | Amended Term Loan Credit Agreement | Base Rate | Secured Overnight Financing Rate (SOFR)      
Debt Instrument [Line Items]      
Basis spread on variable rate (as a percent) 4.50%    
Term Loan | Amended Term Loan Credit Agreement | Base Rate | Minimum | Secured Overnight Financing Rate (SOFR)      
Debt Instrument [Line Items]      
Interest rate floor 0.75%    
Term Loan | Amended Term Loan Credit Agreement | Secured Overnight Financing Rate (SOFR) | Base Rate      
Debt Instrument [Line Items]      
Basis spread on variable rate (as a percent) 1.00%    
Term Loan | Amended Term Loan Credit Agreement | Secured Overnight Financing Rate (SOFR) | Secured Overnight Financing Rate (SOFR)      
Debt Instrument [Line Items]      
Basis spread on variable rate (as a percent) 5.50%    
Term Loan | Amended Term Loan Credit Agreement | Secured Overnight Financing Rate (SOFR) | Minimum | Base Rate      
Debt Instrument [Line Items]      
Interest rate floor 1.75%    
Term Loan | Amended Term Loan Credit Agreement | Secured Overnight Financing Rate (SOFR) | Minimum | Secured Overnight Financing Rate (SOFR)      
Debt Instrument [Line Items]      
Interest rate floor 0.75%    
v3.25.1
Debt Financing Arrangements - Senior Secured Asset-Based Revolving Credit Facility (Details) - USD ($)
3 Months Ended 12 Months Ended
Jun. 14, 2021
Jul. 31, 2021
Nov. 04, 2017
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Feb. 01, 2020
May 31, 2015
ABL Facility                
Line of Credit Facility [Line Items]                
Maximum restricted payment       $ 102,800,000 $ 103,200,000      
Existing ABL Facility                
Line of Credit Facility [Line Items]                
Standby letters of credit issued and outstanding       11,400,000 11,400,000      
Revolving Credit Facility                
Line of Credit Facility [Line Items]                
Additional borrowing capacity               $ 50,000,000
Revolving Credit Facility | Line of Credit                
Line of Credit Facility [Line Items]                
ABL Facility       0 7,270,000      
Financing costs incurred   $ 700,000 $ 500,000          
Write off of unamortized original issue discount and deferred financing costs for Amended Term Loan Credit Agreement             $ 100,000  
Unamortized financing costs   $ 100,000            
Amortization of financing costs       200,000 200,000 $ 200,000    
Interest payments       $ 900,000 1,600,000 $ 1,800,000    
Revolving Credit Facility | Existing ABL Facility, Third Amendment                
Line of Credit Facility [Line Items]                
Maximum borrowing capacity $ 150,000,000              
Revolving Credit Facility | ABL Facility                
Line of Credit Facility [Line Items]                
Additional borrowing capacity $ 50,000,000              
Percentage of eligible credit card receivables 90.00%              
Maximum borrowing capacity including additional commitments $ 200,000,000              
Interest rate at end of period       8.00%        
Fixed charge coverage ratio 1.00              
Percentage of the loan cap 10.00%              
Specified availability $ 7,000,000              
Revolving Credit Facility | ABL Facility | Term One                
Line of Credit Facility [Line Items]                
Percentage of appraised net orderly liquidation value of eligible inventory 90.00%              
Fixed charge coverage ratio 1.00              
Percentage of maximum pro forma basis borrowing 15.00%              
Revolving Credit Facility | ABL Facility | Term Two                
Line of Credit Facility [Line Items]                
Percentage of maximum pro forma basis borrowing 20.00%              
Revolving Credit Facility | ABL Facility | Term Two And Thereafter                
Line of Credit Facility [Line Items]                
Percentage of appraised net orderly liquidation value of eligible inventory 92.50%              
Revolving Credit Facility | ABL Facility | Fed Funds Effective Rate                
Line of Credit Facility [Line Items]                
Basis spread on variable rate (as a percent) 0.50%              
Revolving Credit Facility | ABL Facility | Secured Overnight Financing Rate (SOFR)                
Line of Credit Facility [Line Items]                
Basis spread on variable rate (as a percent) 1.00%              
Revolving Credit Facility | ABL Facility | Maximum                
Line of Credit Facility [Line Items]                
Unutilized commitment, commitment fee percentage 0.375%              
Revolving Credit Facility | ABL Facility | Maximum | Base Rate                
Line of Credit Facility [Line Items]                
Basis spread on variable rate (as a percent) 0.75%              
Revolving Credit Facility | ABL Facility | Maximum | Adjusted SOFR                
Line of Credit Facility [Line Items]                
Basis spread on variable rate (as a percent) 1.75%              
Revolving Credit Facility | ABL Facility | Minimum                
Line of Credit Facility [Line Items]                
Unutilized commitment, commitment fee percentage 0.25%              
Revolving Credit Facility | ABL Facility | Minimum | Base Rate                
Line of Credit Facility [Line Items]                
Basis spread on variable rate (as a percent) 0.25%              
Revolving Credit Facility | ABL Facility | Minimum | Adjusted SOFR                
Line of Credit Facility [Line Items]                
Basis spread on variable rate (as a percent) 1.25%              
Revolving Credit Facility | Existing ABL Facility                
Line of Credit Facility [Line Items]                
Availability       $ 109,500,000 102,700,000      
Revolving Credit Facility | Existing ABL Facility | Line of Credit                
Line of Credit Facility [Line Items]                
ABL Facility       $ 0 $ 7,300,000      
Revolving Credit Facility | Original ABL Facility | Line of Credit                
Line of Credit Facility [Line Items]                
Debt term (in years)   5 years            
v3.25.1
Income Taxes - Schedule of Income Before Provision for Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Income Tax Disclosure [Abstract]      
Domestic $ 17,424 $ 17,604 $ 69,273
Foreign 4,179 431 2,409
Income before provision for income taxes $ 21,603 $ 18,035 $ 71,682
v3.25.1
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Current:      
Federal $ 11,565 $ 9,108 $ 14,442
State 1,620 2,795 4,693
Foreign 21 186 487
Total current 13,206 12,089 19,622
Deferred:      
Federal (7,387) (5,193) 1,632
State (777) (513) 4
Foreign 243 33 215
Total deferred (7,921) (5,673) 1,851
Total income tax provision $ 5,285 $ 6,416 $ 21,473
v3.25.1
Income Taxes - Schedule of Deferred Tax Assets And Liabilities (Details) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Income Tax Disclosure [Abstract]    
Inventory $ 1,483 $ 1,254
Loyalty reserve 2,874 3,318
Accrued bonus 2,032 250
Lease liability 38,729 45,308
Share-based compensation 2,324 1,355
Interest expense limitation 5,658 3,840
Other deferred tax assets 7,335 7,211
ROU assets (33,182) (38,053)
Intangible assets (2,065) (2,062)
Depreciation (6,531) (11,877)
Other deferred tax liabilities (2,037) (1,863)
Total net deferred tax assets $ 16,620 $ 8,681
v3.25.1
Income Taxes - Schedule of Income Tax Rate Reconciliation (Details)
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Income Tax Disclosure [Abstract]      
Statutory federal rate 21.00% 21.00% 21.00%
State and local taxes, net of federal benefit 3.60% 10.90% 5.30%
Share-based compensation 0.10% 5.10% 2.10%
Liability for uncertain tax positions (0.60%) (1.50%) (0.20%)
Information technology services charge 0.00% 0.00% 0.40%
Limitation on Section 162(m) officers 0.90% 0.50% 1.30%
Foreign derived intangible income (0.20%) (0.30%) (0.20%)
Other differences, net (0.30%) (0.10%) 0.30%
Effective income tax rate 24.50% 35.60% 30.00%
v3.25.1
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Income Tax Disclosure [Abstract]      
Income tax detriment $ 1,831 $ 923 $ 340
Accumulated undistributed earnings of foreign subsidiary 9,000    
Unrecognized tax benefits including interest and penalties 2,400 2,500  
Unrecognized tax benefits, net 2,000 2,100  
Decrease in unrecognized tax benefits is reasonably possible 400    
Decrease in unrecognized tax benefits is reasonably possible, net 300    
Tax expense related to interest and penalties $ 500 $ 600 $ 800
v3.25.1
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Unrecognized Tax Benefits [Roll Forward]      
Unrecognized tax benefits at the beginning of the fiscal year $ 1,925 $ 2,996 $ 3,293
Tax positions related to the current period 3 0 59
Tax positions related to the prior period 154 104  
Tax positions related to the prior period     (116)
Tax positions settled or statute of limitations lapsed (262) (1,175) (240)
Unrecognized tax benefits at the end of the fiscal year $ 1,820 $ 1,925 $ 2,996
v3.25.1
Share-Based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense before income taxes $ 7,634 $ 8,042 $ 9,980
Income tax detriment 1,831 923 340
Net share-based compensation expense 9,465 8,965 10,320
Restricted stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense before income taxes 2,391 2,405 1,818
Restricted stock awards      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense before income taxes 128 2,018 6,304
Performance-based restricted stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense before income taxes 124 711 568
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense before income taxes 1,787 1,537 972
Restricted cash units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense before income taxes 3,009 1,209 0
Employee stock purchase plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense before income taxes $ 195 $ 162 $ 318
v3.25.1
Share-Based Compensation - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Jul. 06, 2021
Feb. 01, 2025
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Aggregate intrinsic value   $ 7,100 $ 7,100    
Weighted average remaining contractual life (in years)     8 years 3 months 18 days    
Aggregate intrinsic value of options vested and expected to vest   7,100 $ 7,100    
weighted-average remaining contractual term (in years)     8 years 3 months 18 days    
Aggregate intrinsic value of options exercisable   $ 1,500 $ 1,500    
Weighted-average remaining contractual term (in years)     7 years 7 months 6 days    
Weighted average grant date fair value per share (in USD per share)     $ 2.77 $ 1.91 $ 3.25
2021 Long-Term Incentive Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Shares authorized (in shares)   10,687,500 10,687,500    
Employee stock purchase plan | 2021 Employee Stock Purchase Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Shares authorized (in shares)   3,650,000 3,650,000    
Contribution of base earnings towards common stock (as a percent)   15.00% 15.00%    
Purchase price (as a percent)     85.00%    
Restricted stock units          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Award vesting period (in years)     4 years    
Unrecognized share-based compensation expense   $ 4,000 $ 4,000    
Weighted average period for compensation expense related to unvested RSUs (in years)   2 years      
Vesting fair value of RSUs     3,100 $ 800 $ 300
Restricted stock units | Management          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Aggregate value of grants in period $ 5,700        
Restricted stock units | Management | Fully vested on grant date          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Award vesting percentage 50.00%        
Restricted stock units | Management | Vest in equal installments on first, second and third anniversaries of IPO date          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Award vesting percentage 50.00%        
Restricted stock awards          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Unrecognized share-based compensation expense   $ 0 0    
Vesting fair value of RSUs     $ 0 $ 300 $ 1,400
Restricted stock awards | Minimum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Award vesting period (in years)     2 years    
Restricted stock awards | Maximum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Award vesting period (in years)     4 years    
Stock options          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Award vesting period (in years)     4 years    
Unrecognized share-based compensation expense   4,100 $ 4,100    
Weighted average period for compensation expense related to unvested RSUs (in years)     2 years 7 months 6 days    
Vesting expiration period (in years)     10 years    
Restricted cash units          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Award vesting period (in years)     4 years    
Cash payment for vested awards     $ 1,300    
Liability associated with unvested awards   $ 2,900 $ 2,900    
v3.25.1
Share-Based Compensation - Schedule of RSU Activity, Including IPO Awards And PSUs (Details) - RSU - $ / shares
shares in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Shares      
Nonvested, beginning balance (in shares) 1,953 1,386 278
Granted (in shares) 659 1,312 1,371
Vested (in shares) (541) (249) (66)
Forfeited (in shares) (588) (496) (197)
Nonvested, ending balance (in shares) 1,483 1,953 1,386
Weighted average grant date value per share      
Nonvested, beginning balance (in USD per share) $ 4.14 $ 6.55 $ 26.75
Granted (in USD per share) 4.67 3.13 5.07
Vested (in USD per share) 4.72 8.57 25.65
Forfeited (in USD per share) 3.76 5.98 18.07
Nonvested, ending balance (in USD per share) $ 4.32 $ 4.14 $ 6.55
v3.25.1
Share-Based Compensation - Schedule of Weighted Average Grant Date Fair Value Of The PSUs (Details) - Restricted stock units - $ / shares
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dividend yield 0.00% 0.00% 0.00%
Expected volatility 0.00% 68.40% 70.70%
Risk-free interest rate 0.00% 3.80% 3.20%
Expected term 3 years 3 years
Grant date fair value per share (in USD per share) $ 0 $ 1.66 $ 4.15
v3.25.1
Share-Based Compensation - Schedule of Restricted Stock Award Activity (Details) - Restricted stock awards - $ / shares
shares in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Shares      
Nonvested, beginning balance (in shares) 5 211 532
Granted (in shares) 0 0 0
Vested (in shares) (5) (102) (241)
Forfeited (in shares) 0 (104) (80)
Nonvested, ending balance (in shares) 0 5 211
Weighted average grant date value per share      
Nonvested, beginning balance (in USD per share) $ 27.00 $ 27.00 $ 27.00
Granted (in USD per share)
Vested (in USD per share) 27.00 27.00 27.00
Forfeited (in USD per share) 0 27.00 27.00
Nonvested, ending balance (in USD per share) $ 0 $ 27.00 $ 27.00
v3.25.1
Share-Based Compensation - Schedule of Stock Option Activity (Details) - $ / shares
shares in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Shares      
Options outstanding, beginning balance (in shares) 2,352 1,444 337
Granted (in shares) 1,048 1,514 1,420
Exercised (in shares) (133) 0 0
Expired / forfeited (in shares) (559) (606) (313)
Options outstanding, ending balance (in shares) 2,708 2,352 1,444
Vested and expected to vest at the end of the fiscal year (in shares) 2,708 2,352 1,444
Exercisable (in shares) 677 307 44
Weighted average exercise price per share      
Outstanding, beginning balance (in USD per share) $ 4.98 $ 7.38 $ 21.03
Granted (in USD per share) 4.60 3.19 5.58
Exercised (in USD per share) 3.52    
Expired / forfeited (in USD per share) 4.70 6.56 13.90
Outstanding, ending balance (in USD per share) 4.95 4.98 7.38
Vested and expected to vest at the end of the fiscal year (in USD per share) 4.95 4.98 7.38
Exercisable (in USD per share) $ 6.41 $ 8.73 $ 21.03
v3.25.1
Share-Based Compensation - Schedule of Weighted Average Grant Date Fair Value Of Stock Option Awards Granted (Details) - Stock options - $ / shares
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dividend yield 0.00% 0.00% 0.00%
Expected volatility 59.10% 60.40% 59.00%
Risk-free interest rate 4.40% 3.70% 3.10%
Expected term 6 years 3 months 6 years 3 months 6 years 3 months
Grant date fair value per share (in USD per share) $ 2.77 $ 1.91 $ 3.25
v3.25.1
Other Noncurrent Liabilities (Details) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Other Liabilities Disclosure [Abstract]    
Noncurrent portion of lease incentives $ 271 $ 730
Noncurrent income taxes payable 2,366 2,517
Deferred PLCC Funds 2,958 3,458
Other noncurrent liabilities $ 5,595 $ 6,705
v3.25.1
Commitments and Contingencies (Details)
Feb. 01, 2025
Minimum  
Loss Contingencies [Line Items]  
Lease term (in years) 1 year
Maximum  
Loss Contingencies [Line Items]  
Lease term (in years) 17 years
v3.25.1
Share Repurchases - Narrative (Details) - USD ($)
Feb. 01, 2025
Dec. 06, 2021
Equity [Abstract]    
Share repurchase program (up to)   $ 100,000,000
Remaining share repurchase program $ 44,900,000  
v3.25.1
Share Repurchases - Schedule of Share Repurchase Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Equity [Abstract]      
Number of shares repurchased (in shares) 0 0 4,464,367
Total cost $ 0 $ 0 $ 31,700
Average per share cost including commissions (in USD per share) $ 0 $ 0 $ 7.10
v3.25.1
Earnings Per Share (Details) - shares
shares in Millions
12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Potentially dilutive common share equivalents outstanding, included in computation of diluted EPS (in shares) 1.1 0.4 0.1
Restricted Stock, Restricted Stock Units, And Performance Stock Units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Potentially dilutive common share equivalents outstanding, excluded from computation of diluted EPS (in shares) 0.1    
Stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Potentially dilutive common share equivalents outstanding, excluded from computation of diluted EPS (in shares) 1.6 2.3 0.9
Restricted Stock And Restricted Stock Units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Potentially dilutive common share equivalents outstanding, excluded from computation of diluted EPS (in shares)   0.6 0.9
v3.25.1
Fair Value Measurements (Details) - Fair Value, Recurring - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Assets:    
Total assets $ 31,727 $ 33
Liabilities:    
Deferred compensation plan liability (current) 1,767  
Deferred compensation plan liability (noncurrent) 3,913 5,474
Total liabilities 5,680 5,474
Money Market Funds    
Assets:    
Money market funds (cash equivalent) 31,727 33
Quoted Prices in Active Markets for Identical Items (Level 1)    
Assets:    
Total assets 31,727 33
Liabilities:    
Deferred compensation plan liability (current) 0  
Deferred compensation plan liability (noncurrent) 0 0
Total liabilities 0 0
Quoted Prices in Active Markets for Identical Items (Level 1) | Money Market Funds    
Assets:    
Money market funds (cash equivalent) 31,727 33
Significant Other Observable Inputs (Level 2)    
Assets:    
Total assets 0 0
Liabilities:    
Deferred compensation plan liability (current) 1,767  
Deferred compensation plan liability (noncurrent) 3,913 5,474
Total liabilities 5,680 5,474
Significant Other Observable Inputs (Level 2) | Money Market Funds    
Assets:    
Money market funds (cash equivalent) 0 0
Significant Unobservable Inputs (Level 3)    
Assets:    
Total assets 0 0
Liabilities:    
Deferred compensation plan liability (current) 0  
Deferred compensation plan liability (noncurrent) 0 0
Total liabilities 0 0
Significant Unobservable Inputs (Level 3) | Money Market Funds    
Assets:    
Money market funds (cash equivalent) $ 0 $ 0