Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED AUGUST 3, 2024


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 000-51300

ZUMIEZ INC.

(Exact name of registrant as specified in its charter)


Washington		91-1040022
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

4001 204th Street SW, Lynnwood, WA 98036

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (425) 551-1500

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☒

Non-accelerated filer	☐	Smaller reporting company	☐
			☐
Emerging growth company	☐		☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Securities registered pursuant to Section 12(b) of the Act:

    Title of each class

    Trading
Symbol(s)

    Name of each exchange on which registered

    Common Stock

    ZUMZ

    Nasdaq Global Select

At August 31, 2024, there were 19,141,409 shares outstanding of common stock.

ZUMIEZ INC.

FORM 10-Q

TABLE OF CONTENTS


Part I.	Financial Information

	Item 1.	Condensed Consolidated Financial Statements

		Condensed Consolidated Balance Sheets at August 3, 2024 (unaudited) and February 3, 2024	3

		Unaudited Condensed Consolidated Statements of Loss for the three and six months ended August 3, 2024 and July 29, 2023	4

		Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended August 3, 2024 and July 29, 2023	5

		Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three and six months ended August 3, 2024 and July 29, 2023	6

		Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended August 3, 2024 and July 29, 2023	7

		Notes to Condensed Consolidated Financial Statements	8

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32

	Item 4.	Controls and Procedures	32

Part II.	Other Information

	Item 1.	Legal Proceedings	33

	Item 1A.	Risk Factors	33

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33

	Item 3.	Defaults Upon Senior Securities	33

	Item 4.	Mine Safety Disclosures	33

	Item 5.	Other Information	33

	Item 6.	Exhibits	34

Signature			35

ZUMIEZ INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)


	August 3, 2024			February 3, 2024
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	65,766		$	88,875
Marketable securities		61,194			82,704
Receivables		23,129			13,780
Inventories		158,753			128,827
Prepaid expenses and other current assets		17,939			12,401
Total current assets		326,781			326,587
Fixed assets, net		87,573			90,508
Operating lease right-of-use assets		203,744			196,775
Goodwill		15,358			15,374
Intangible assets, net		14,196			14,200
Deferred tax assets, net		9,928			8,623
Other long-term assets		11,947			12,159
Total long-term assets		342,746			337,639
Total assets	$	669,527		$	664,226

Liabilities and Shareholders’ Equity
Current liabilities
Trade accounts payable	$	75,016		$	38,885
Accrued payroll and payroll taxes		20,517			18,431
Operating lease liabilities		62,759			60,885
Other current liabilities		22,472			25,886
Total current liabilities		180,764			144,087
Long-term operating lease liabilities		161,663			159,877
Other long-term liabilities		7,296			7,052
Total long-term liabilities		168,959			166,929
Total liabilities		349,723			311,016
Commitments and contingencies (Note 5)
Shareholders’ equity
Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding		—			—
Common stock, no par value, 50,000 shares authorized; 19,360 shares issued and outstanding at August 3, 2024 and 19,833 shares issued and outstanding at February 3, 2024		199,763			196,144
Accumulated other comprehensive loss		(18,844	)		(19,027	)
Retained earnings		138,885			176,093
Total shareholders’ equity		319,804			353,210
Total liabilities and shareholders’ equity	$	669,527		$	664,226

See accompanying notes to condensed consolidated financial statements

ZUMIEZ INC.

CONDENSED CONSOLIDATED STATEMENTS OF LOSS

(In thousands, except per share amounts)

(Unaudited)


	Three Months Ended				Six Months Ended
	August 3, 2024			July 29, 2023	August 3, 2024			July 29, 2023
Net sales	$	210,179	$	194,438	$	387,567	$	377,325
Cost of goods sold		138,385		132,760		263,874		266,290
Gross profit		71,794		61,678		123,693		111,035
Selling, general and administrative expenses		72,187		72,171		144,240		142,881
Operating loss		(393)		(10,493)		(20,547)		(31,846)
Interest income, net		1,128		775		2,449		1,632
Other (expense) income, net		(179)		423		(946)		(118)
Income (loss) before income taxes		556		(9,295)		(19,044)		(30,332)
Benefit from (provision for) income taxes		1,403		(786)		(1,417)		(3,441)
Net loss	$	(847)	$	(8,509)	$	(17,627)	$	(26,891)
Basic loss per share	$	(0.04)	$	(0.44)	$	(0.91)	$	(1.40)
Diluted loss per share	$	(0.04)	$	(0.44)	$	(0.91)	$	(1.40)
Weighted average shares used in computation of loss per share:
Basic		19,284		19,311		19,375		19,254
Diluted		19,284		19,311		19,375		19,254

See accompanying notes to condensed consolidated financial statements

ZUMIEZ INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)


	Three Months Ended		Six Months Ended
	August 3, 2024	July 29, 2023	August 3, 2024	July 29, 2023
Net loss	$(847)	$(8,509)	$(17,627)	$(26,891)
Other comprehensive income (loss), net of tax and reclassification adjustments:
Foreign currency translation	184	385	(712)	771
Net change in fair value of available-for-sale debt securities	997	135	895	465
Other comprehensive income, net	1,181	520	183	1,236
Comprehensive income (loss)	$334	$(7,989)	$(17,444)	$(25,655)

See accompanying notes to condensed consolidated financial statements

ZUMIEZ INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(In thousands)

(Unaudited)


	Common Stock						Accumulated Other Comprehensive			Retained
	Shares			Amount			Loss			Earnings			Total
Balance at May 4, 2024		20,318		$	198,047		$	(20,025	)	$	159,313		$	337,335
Net loss		—			—			—			(847	)		(847	)
Other comprehensive income, net		—			—			1,181			—			1,181
Issuance and exercise of stock-based awards		(13	)		(2	)		—			—			(2	)
Stock-based compensation expense		—			1,718			—			—			1,718
Repurchase of common stock		(945	)		—			—			(19,581	)		(19,581	)
Balance at August 3, 2024		19,360		$	199,763		$	(18,844	)	$	138,885		$	319,804


	Common Stock				Accumulated Other Comprehensive			Retained
	Shares		Amount		Loss			Earnings			Total
Balance at April 29, 2023		19,782	$	190,599	$	(19,077	)	$	220,321		$	391,843
Net income		—		—		—			(8,509	)		(8,509	)
Other comprehensive income, net		—		—		520			—			520
Issuance and exercise of stock-based awards		27		—		—			—			—
Stock-based compensation expense		—		1,570		—			—			1,570
Balance at July 29, 2023		19,809	$	192,169	$	(18,557	)	$	211,812		$	385,424


	Common Stock					Accumulated Other Comprehensive			Retained
	Shares			Amount		Loss			Earnings			Total
Balance at February 3, 2024		19,833		$	196,144	$	(19,027	)	$	176,093		$	353,210
Net loss		—			—		—			(17,627	)		(17,627	)
Other comprehensive income, net		—			—		183			—			183
Issuance and exercise of stock-based awards		472			228		—			—			228
Stock-based compensation expense		—			3,391		—			—			3,391
Repurchase of common stock		(945	)		—		—			(19,581	)		(19,581	)
Balance at August 3, 2024		19,360		$	199,763	$	(18,844	)	$	138,885		$	319,804



	Common Stock				Accumulated Other Comprehensive			Retained
	Shares		Amount		Loss			Earnings			Total
Balance at January 28, 2023		19,489	$	188,418	$	(19,793	)	$	238,703		$	407,328
Net loss		—		—		—			(26,891	)		(26,891	)
Other comprehensive income, net		—		—		1,236			—			1,236
Issuance and exercise of stock-based awards		320		275		—			—			275
Stock-based compensation expense		—		3,476		—			—			3,476
Repurchase of common stock		—		—		—			—			—
Balance at July 29, 2023		19,809	$	192,169	$	(18,557	)	$	211,812		$	385,424

See accompanying notes to condensed consolidated financial statements

ZUMIEZ INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Six Months Ended
	August 3, 2024			July 29, 2023
Cash flows from operating activities:
Net loss	$	(17,627	)	$	(26,891	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and accretion		11,052			10,881
Noncash lease expense		32,169			34,380
Deferred taxes		(1,688	)		(4,060	)
Stock-based compensation expense		3,391			3,476
Impairment of long-lived assets		298			338
Other		949			84
Changes in operating assets and liabilities:
Receivables		(7,067	)		(1,113	)
Inventories		(30,665	)		(21,721	)
Prepaid expenses and other assets		(937	)		(3,807	)
Trade accounts payable		34,650			30,150
Accrued payroll and payroll taxes		2,102			(1,676	)
Income taxes payable		(1,346	)		(1,044	)
Operating lease liabilities		(36,817	)		(38,783	)
Other liabilities		(3,886	)		(4,480	)
Net cash used in operating activities		(15,422	)		(24,266	)
Cash flows from investing activities:
Additions to fixed assets		(6,266	)		(11,879	)
Purchases of marketable securities		(1,967	)		(1,850	)
Sales and maturities of marketable securities and other investments		24,145			12,284
Net cash provided by (used in) investing activities		15,912			(1,445	)
Cash flows from financing activities:
Proceeds from revolving credit facilities		3,220			25,682
Payments on revolving credit facilities		(3,220	)		(25,682	)
Proceeds from issuance and exercise of stock-based awards		357			460
Payments for tax withholdings on equity awards		(130	)		(185	)
Repurchase of common stock, including taxes		(19,581	)		—
Net cash (used in) provided by financing activities		(19,354	)		275
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(213	)		179
Net decrease in cash, cash equivalents, and restricted cash		(19,077	)		(25,257	)
Cash, cash equivalents, and restricted cash, beginning of period		94,284			88,453
Cash, cash equivalents, and restricted cash, end of period	$	75,207		$	63,196
Supplemental disclosure on cash flow information:
Cash paid during the period for income taxes	$	1,805		$	1,520
Accrual for purchases of fixed assets		3,326			1,784
Accrual for repurchase of common stock		479			—

See accompanying notes to condensed consolidated financial statements

ZUMIEZ INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Nature of Business and Basis of Presentation

Nature of Business—Zumiez Inc., including its wholly owned subsidiaries, (the “Company,” “we,” “us,” “its” and “our”) is a leading specialty retailer of apparel, footwear, accessories and hardgoods for young men and women who want to express their individuality through the fashion, music, art and culture of action sports, streetwear, and other unique lifestyles. We operate under the names Zumiez, Blue Tomato and Fast Times. We operate ecommerce websites at zumiez.com, zumiez.ca, blue-tomato.com and fasttimes.com.au. At August 3, 2024, we operated 750 stores; 592 in the United States (“U.S.”), 86 in Europe, 46 in Canada, and 26 in Australia.

Fiscal Year—We use a fiscal calendar widely used by the retail industry that results in a fiscal year consisting of a 52- or 53-week period ending on the Saturday closest to January 31. Each fiscal year consists of four 13-week quarters, with an extra week added to the fourth quarter every five or six years. The three months ended August 3, 2024 and July 29, 2023 were 13-week periods. The six months ended August 3, 2024 and July 29, 2023 were 26-week periods.

Basis of Presentation—The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed consolidated financial statements include the accounts of Zumiez Inc. and its wholly-owned subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation.

In our opinion, the unaudited condensed consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the condensed consolidated balance sheets, operating results and cash flows for the periods presented.

The financial data at February 3, 2024 is derived from audited consolidated financial statements, which are included in our Annual Report on Form 10-K for the year ended February 3, 2024, and should be read in conjunction with the audited consolidated financial statements and notes thereto. Interim results are not necessarily indicative of results for the full fiscal year due to seasonality and other factors.

Use of Estimates—The preparation of financial statements in conformity with U.S. GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements as well as the reported amounts of revenues and expenses during the reporting period. These estimates can also affect supplemental information disclosed by us, including information about contingencies, risk and financial condition. Actual results could differ from these estimates and assumptions.

Restricted Cash—Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements are recorded as restricted cash in other current assets and other long-term assets on our condensed consolidated balance sheets. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows (in thousands):


	August 3, 2024		February 3, 2024
Cash and cash equivalents	$	65,766	$	88,875
Restricted cash included in other current assets and other long-term assets		9,441		5,409
Total cash, cash equivalents, and restricted cash as shown in the statement of cash flows	$	75,207	$	94,284

As of August 3, 2024, restricted cash included in other current assets and other long-term assets amounted to $4.0 million and $5.4 million, respectively. As of July 29, 2023, restricted cash amounting to $5.4 million were all classified as other long-term assets Restricted cash represents amounts held as insurance collateral and collateral for bank guarantees on certain store operating leases.

Effective as of May 3, 2024, we terminated the Credit Agreement and standby letters of credit have been transitioned to restricted deposits with the Bank. See Note 6 Revolving Credit Facilities and Debt for details of termination.

Recent Accounting Standards—We review recent account pronouncements on a quarterly basis and have excluded discussion of those that are not applicable and those that we determined did not have, or are not expected to have, a material impact on the condensed consolidated financial statements.

In November 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires enhanced disclosures around significant segment expenses. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024. The ASU requires public entities to adopt this new guidance on a retrospective basis. The Company is currently evaluating the effect that the new ASU will have on its disclosures and expects to adopt effective for fiscal 2025.

In December 2023, the FASB issued Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires business entities to expand their annual disclosures of income taxes paid and the effective rate reconciliation. The ASU is effective for fiscal years beginning after December 15, 2024.The Company is currently evaluating the effect that the new ASU will have on its disclosures and expects to adopt effective for fiscal 2025.

On December 20, 2021, the Organization for Economic Co-operation and Development ("OECD") has published a proposal to establish a new global minimum corporate tax rate of 15%, commonly referred to as Pillar Two. While the U.S. has not yet adopted the Pillar Two framework into law, several countries in which we operate have enacted tax legislation based on the Pillar Two framework with certain components of the minimum tax rules effective beginning in fiscal year 2024 and further rules becoming effective beginning in fiscal year 2025. These rules are not expected to materially impact the Company’s Consolidated Financial Statements, considering the Company does not have material operations in jurisdictions with tax rates lower than the Pillar Two minimum rate. The Company will continue to monitor U.S. and global legislative action related to Pillar Two for potential impacts.

2. Revenue

The following table disaggregates net sales by geographic region (in thousands):


	Three Months Ended				Six Months Ended
	August 3, 2024		July 29, 2023		August 3, 2024		July 29, 2023
United States	$	166,186	$	149,991	$	300,057	$	285,541
Europe		28,320		29,488		57,890		62,999
Canada		10,148		9,682		18,974		18,116
Australia		5,525		5,277		10,646		10,669
Net sales	$	210,179	$	194,438	$	387,567	$	377,325

Net sales for the three months ended August 3, 2024 included a $0.6 million increase due to the change in foreign exchange rates, which consisted of a $0.3 million increase in Europe, and a $0.3 million increase in Canada. Net sales for the six months ended August 3, 2024 included a $0.7 million increase due to the change in foreign exchange rates, which consisted of a $0.3 million increase in Canada, a $0.2 million increase in Europe and a $0.2 million increase in Australia.

Our contract liabilities include deferred revenue related to our customer loyalty program and gift cards. The current liability for gift cards was $2.7 million at August 3, 2024 and $4.3 million at February 3, 2024, respectively. Deferred revenue related to our STASH loyalty program was $1.1 million and $1.0 million at August 3, 2024 and February 3, 2024, respectively.

3. Cash, Cash Equivalents and Marketable Securities

The following tables summarize the estimated fair value of our cash, cash equivalents and marketable securities and the gross unrealized holding gains and losses (in thousands):


	August 3, 2024
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Cash and cash equivalents:
Cash	$	31,499	$	—	$	—		$	31,499
Money market funds		31,375		—		—			31,375
Corporate debt securities		2,892		—		—			2,892
Total cash and cash equivalents		65,766		—		—			65,766
Marketable securities:
U.S. treasury and government agency securities		16,199		—		(2,282	)		13,917
Corporate debt securities		24,241		—		(359	)		23,882
State and local government securities		1,400		—		(13	)		1,387
Certificate of deposits		18,568		—		—			18,568
Variable-rate demand notes		3,440		—		—			3,440
Total marketable securities	$	63,848	$	—	$	(2,654	)	$	61,194


	February 3, 2024
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Cash and cash equivalents:
Cash	$	38,188	$	—	$	—		$	38,188
Money market funds		11,322		—		—			11,322
Corporate debt securities		39,374		—		(9	)		39,365
Total cash and cash equivalents		88,884		—		(9	)		88,875
Marketable securities:
U.S. treasury and government agency securities		17,610		—		(2,834	)		14,776
Corporate debt securities		41,218		1		(948	)		40,271
State and local government securities		6,525		—		(105	)		6,420
Certificates of deposit		16,607		—		—			16,607
Variable-rate demand notes		4,630		—		—			4,630
Total marketable securities	$	86,590	$	1	$	(3,887	)	$	82,704

All of our marketable securities have an effective maturity date or weighted average life of five years or less at the time of purchase and may be liquidated, at our discretion, prior to maturity.

The following tables summarize the gross unrealized holding losses and fair value for investments in an unrealized loss position, and the length of time that individual securities have been in a continuous loss position (in thousands):


	August 3, 2024
	Less Than 12 Months				12 Months or Greater					Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Marketable securities:
U.S. treasury and government agency securities		—		—		13,917		(2,282	)		13,917		(2,282	)
Corporate debt securities		—		—		22,881		(359	)		22,881		(359	)
State and local government securities		—		—		1,387		(13	)		1,387		(13	)
Total marketable securities	$	—	$	—	$	38,185	$	(2,654	)	$	38,185	$	(2,654	)


	February 3, 2024
	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Cash and cash equivalents:
Corporate debt securities	$	29,093	$	(9	)	$	—	$	—		$	29,093	$	(9	)
Total cash and cash equivalents		29,093		(9	)		—		—			29,093		(9	)
Marketable securities:
U.S. treasury and government agency securities		—		—			14,777		(2,834	)		14,777		(2,834	)
Corporate debt securities		—		—			37,878		(948	)		37,878		(948	)
State and local government securities		—		—			6,420		(105	)		6,420		(105	)
Total marketable securities	$	—	$	—		$	59,075	$	(3,887	)	$	59,075	$	(3,887	)

4. Leases

At August 3, 2024, we had operating leases for our retail stores, certain distribution and fulfillment facilities, vehicles and equipment. Our remaining lease terms vary from under one month to eleven years, with varying renewal and termination options.

The following table presents components of lease expense (in thousands):


	Three Months Ended				Six Months Ended
	August 3, 2024		July 29, 2023		August 3, 2024		July 29, 2023
Operating lease expense	$	20,174	$	19,864	$	36,812	$	37,630
Variable lease expense		1,256		728		4,633		3,780
Total lease expense (1)	$	21,430	$	20,592	$	41,445	$	41,410

(1)

Total lease expense includes short-term lease expense and sublease income which is immaterial to the Company. Total lease expense does not include right-of-use asset impairment charges, common area maintenance charges and other non-lease components.

Supplemental cash flow information related to leases is as follows (in thousands):


	Six Months Ended
	August 3, 2024			July 29, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(36,817	)	$	(38,783	)
Right-of-use assets obtained in exchange for new operating lease liabilities		46,978			32,900

Weighted-average remaining lease term and discount rate were as follows:


	August 3, 2024			July 29, 2023
Weighted-average remaining lease term		4.8			4.9
Weighted-average discount rate		4.3	%		2.9	%

At August 3, 2024, the maturities of our operating leases liabilities are as follows (in thousands):


Fiscal 2024	$	35,556
Fiscal 2025		67,139
Fiscal 2026		45,876
Fiscal 2027		35,437
Fiscal 2028		21,466
Fiscal 2029		12,932
Thereafter		30,220
Total minimum lease payments		248,626
Less: interest		(24,204	)
Present value of lease obligations		224,422
Less: current portion		(62,759	)
Long-term lease obligations (1)	$	161,663

(1)

Amounts in the table do not include contingent rent, common area maintenance charges and other non-lease components.

At August 3, 2024, we have excluded from the table above $1.1 million of operating leases that were contractually executed, but had not yet commenced. These operating leases are expected to commence by the end of fiscal 2024.

5. Commitments and Contingencies

Purchase Commitments—At August 3, 2024, we had outstanding purchase orders to acquire merchandise from vendors of $231.4 million. We have an option to cancel these commitments with no notice prior to shipment, except for certain private label and international purchase orders in which we are obligated to repay contractual amounts upon cancellation.

Litigation—We are involved from time to time in claims, proceedings and litigation arising in the ordinary course of business. We have made accruals with respect to these matters, where appropriate, which are reflected in our condensed consolidated financial statements. For some matters, the amount of liability is not probable or the amount cannot be reasonably estimated and therefore accruals have not been made. We may enter into discussions regarding settlement of these matters, and may enter into settlement agreements, if we believe settlement is in the best interest of our shareholders.

On October 14, 2022, former employee Seana Neihart filed a representative action under California’s Private Attorneys General Act, California Labor Code section 2698 et seq (“PAGA”), against us. An answer to the complaint was filed on December 8, 2022. A first amended complaint was filed on February 8, 2023 adding Jessica King as a plaintiff. The lawsuit alleges a series of wage and hour violations under California’s Labor Code. Zumiez has answered the complaint. We are in the process of investigating the claims and we intend to vigorously defend ourselves.

Insurance Reserves—We use a combination of third-party insurance and self-insurance for a number of risk management activities including workers’ compensation, general liability and employee-related health care benefits. We maintain reserves for our self-insured losses, which are estimated based on historical claims experience and actuarial and other assumptions. The self-insurance reserve at August 3, 2024 and February 3, 2024 was $1.4 million and $1.7 million, respectively.

6. Revolving Credit Facilities and Debt

We were previously parties to a Credit Agreement with Wells Fargo Bank, N.A. (the “Bank”) that provided us with a senior secured credit facility (“credit facility”) for working capital and other general corporate purposes of up to $25.0 million through December 1, 2024. Effective as of May 3, 2024 (the “Termination Date”), we terminated the Credit Agreement with the Bank. There were no borrowings or open commercial letters of credit outstanding under the credit facility as of the Termination Date. At the time

of the Termination Date, there were $3.4 million in issued, but undrawn, standby letters of credit that have been transitioned to restricted deposits with the Bank.

There were no early termination penalties incurred by us in connection with the termination of the Credit Agreement. As referenced above, there were no borrowings or open commercial letters of credit outstanding under the credit facility and we believe that our significant sources of liquidity continue to be funds generated by our operating activities and available cash, cash equivalents and current marketable securities. Termination of the Credit Agreement allows us to discontinue paying an unused commitment fee of 0.50% of the credit facility amount per annum.

There were no borrowings outstanding under the credit facility at February 3, 2024. We had open commercial letters of credit outstanding of less than $0.5 million at August 3, 2024 and no open commercial letters of credit outstanding as of February 3, 2024. We had $2.7 million in issued, but undrawn, standby letters of credit at August 3, 2024 and $3.5 million in issued, but undrawn, standby letters of credit at February 3, 2024

7. Fair Value Measurements

We apply the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

•

Level 1— Quoted prices in active markets for identical assets or liabilities;

•

Level 2— Quoted prices for similar assets or liabilities in active markets or inputs that are observable; and

•

Level 3— Inputs that are unobservable.

The following tables summarize assets measured at fair value on a recurring basis (in thousands):


	August 3, 2024
	Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	31,375	$	—	$	—
Corporate debt securities		—		2,892		—
Marketable securities:
U.S. treasury and government agency securities		—		13,917		—
Corporate debt securities		—		23,882		—
Certificates of deposit		—		18,568
State and local government securities		—		1,387		—
Variable-rate demand notes		—		3,440		—
Long-term assets:
Money market funds		9,441		—		—
Total	$	40,816	$	64,086	$	—


	February 3, 2024
	Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	11,322	$	—	$	—
Corporate debt securities		—		39,365		—
Marketable securities:
U.S. treasury and government agency securities		—		14,776		—
Corporate debt securities		—		40,271		—
Certificates of deposit		—		16,607		—
State and local government securities		—		6,420		—
Variable-rate demand notes		—		4,630		—
Other long-term assets:		—		—		—
Money market funds		5,409		—		—
Total	$	16,731	$	122,069	$	—

The Level 2 marketable securities include U.S treasury and government agency securities, corporate debt securities, state and local municipal securities and variable-rate demand notes. Fair values are based on quoted market prices for similar assets or liabilities or determined using inputs that use readily observable market data that are actively quoted and can be validated through external sources, including third-party pricing services, brokers and market transactions. We review the pricing techniques and methodologies of the independent pricing service for Level 2 investments and believe that its policies adequately consider market activity, either based on specific transactions for the security valued or based on modeling of securities with similar credit quality, duration, yield and structure that were recently traded. We monitor security-specific valuation trends and we make inquiries with the pricing service about material changes or the absence of expected changes to understand the underlying factors and inputs and to validate the reasonableness of the pricing.

Assets and liabilities recognized or disclosed at fair value on the consolidated financial statements on a nonrecurring basis include items such as fixed assets, operating lease right-of-use-assets, goodwill, other intangible assets and other assets. These assets are measured at fair value if determined to be impaired. During the three months ended August 3, 2024, we recognized $0.1 in impairment losses related to fixed assets and no material impairment for three months ended July 29, 2023. During the six months ended August 3, 2024, we recognized $0.2 million in impairment losses related to fixed assets and $0.3 impairment losses for six months ended July 29, 2023. During the three and six months ended August 3, 2024, we recognized $0.1 million in impairment losses related to operating lease right-of-use assets. During the three months ended July 29, 2023, we recognized no material impairment losses related to operating lease right-of-use assets. During the six months ended July 29, 2023, we recognized $0.1 million in impairment losses related to operating lease right-of-use assets.

8. Stockholders’ Equity

Share Repurchase—On June 5, 2024, Zumiez Inc. approved the repurchase of up to an aggregate of $25 million of its Common Stock (the “Repurchase Program”). The repurchases will be made from time to time on the open market at prevailing market prices. The Repurchase Program is expected to continue through June 30, 2025, unless the time period is extended or shortened by the Board of Directors. As of August 3, 2024, there remains $5.6 million available to repurchase common stock under the share repurchase program.

The following table summarizes common stock repurchase activity during the six months ended August 3, 2024 (in thousands, except per share amounts):



Number of shares repurchased		945
Average price per share of repurchased shares (with commission)	$	20.55
Total cost of shares repurchased	$	19,421

Accumulated Other Comprehensive Loss —The components of accumulated other comprehensive loss and the adjustments to other comprehensive income (loss) for amounts reclassified from accumulated other comprehensive loss into net loss are as follows (in thousands):


	Foreign currency translation adjustments (3)			Net unrealized losses on available-for- sale debt securities			Accumulated other comprehensive loss
Three months ended August 3, 2024:
Balance at May 4, 2024	$	(17,042	)	$	(2,983	)	$	(20,025	)
Other comprehensive income, net (1)		184			997			1,181
Balance at August 3, 2024	$	(16,858	)	$	(1,986	)	$	(18,844	)
Three months ended July 29, 2023:
Balance at April 29, 2023	$	(14,715	)	$	(4,362	)	$	(19,077	)
Other comprehensive income, net (1)		385			135			520
Balance at July 29, 2023	$	(14,330	)	$	(4,227	)	$	(18,557	)


	Foreign currency translation adjustments (3)			Net unrealized losses on available-for- sale investments			Accumulated other comprehensive loss
Six months ended August 3, 2024:
Balance at February 3, 2024	$	(16,146	)	$	(2,881	)	$	(19,027	)
Other comprehensive income (loss), net (2)		(712	)		895			183
Balance at August 3, 2024	$	(16,858	)	$	(1,986	)	$	(18,844	)
Six months ended July 29, 2023:
Balance at January 28, 2023	$	(15,101	)	$	(4,692	)	$	(19,793	)
Other comprehensive income, net (2)		771			465			1,236
Balance at July 29, 2023	$	(14,330	)	$	(4,227	)	$	(18,557	)

(1)

Other comprehensive loss before reclassifications was $0.1 million, net of taxes for net unrealized losses on available-for-sale investments for the three months ended August 3, 2024. Other comprehensive income before reclassifications was $0.1 million, net of taxes for net unrealized losses on available-for-sale investments for the three months ended July 29, 2023. There were no net unrealized losses, net of taxes, reclassified from accumulated other comprehensive loss for the three months ended August 3, 2024 and July 29, 2023, respectively.

(2)

Other comprehensive income before reclassifications was $0.9 million, net of taxes for net unrealized losses on available-for-sale investments for the six months ended August 3, 2024. Other comprehensive income before reclassifications was $0.5 million, net of taxes for net unrealized losses on available-for-sale investments for the six months ended July 29, 2023.

There were no net unrealized losses, net of taxes, reclassified from accumulated other comprehensive loss for the six months ended August 3, 2024 and July 29, 2023, respectively.

(3)

Foreign currency translation adjustments are not adjusted for income taxes as they relate to permanent investments in our international subsidiaries.

9. Equity Awards

We maintain several equity incentive plans under which we may grant incentive stock options, non-qualified stock options, stock bonuses, restricted stock awards, restricted stock units and stock appreciation rights to employees (including officers), non-employee directors and consultants.

We account for stock-based compensation by recording the estimated fair value of stock-based awards granted as compensation expense over the vesting period, net of estimated forfeitures. Stock-based compensation expense is attributed to earnings using a straight-line method. We estimate forfeitures of stock-based awards based on historical experience and expected future activity.

The fair value of restricted stock awards and units is measured based on the closing price of our common stock on the date of grant. The fair value of stock option grants is estimated on the date of grant using the Black-Scholes option pricing model.

Total stock-based compensation expense is recognized on our condensed consolidated statements of loss as follows (in thousands):


	Three Months Ended				Six Months Ended
	August 3, 2024		July 29, 2023		August 3, 2024		July 29, 2023
Cost of goods sold	$	370	$	382	$	740	$	774
Selling, general and administrative expenses		1,348		1,188		2,651		2,702
Total stock-based compensation expense	$	1,718	$	1,570	$	3,391	$	3,476

At August 3, 2024, there was $12.5 million of total unrecognized compensation cost related to unvested stock options, restricted stock awards and restricted stock units. This cost has a weighted-average remaining recognition period of 1.3 years.

The following table summarizes restricted stock awards and restricted stock units, collectively defined as “restricted equity awards” (in thousands, except grant date weighted-average fair value):


	Restricted Stock Awards/Units			Grant Date Weighted- Average Fair Value		Intrinsic Value
Outstanding at February 3, 2024		495		$	26.14
Granted		495		$	13.74
Vested		(212	)	$	25.67
Forfeited		(28	)	$	20.76
Outstanding at August 3, 2024		750		$	18.29	$	18,085

We had 0.6 million stock options outstanding at August 3, 2024 with a grant date weighted average exercise price of $22.15 and 0.4 million stock options outstanding at February 3, 2024 with a grant date weighted average exercise price of $26.51.

10. Loss per Share, Basic and Diluted

The following table sets forth the computation of basic and diluted loss per share (in thousands, except per share amounts):


	Three Months Ended						Six Months Ended
	August 3, 2024			July 29, 2023			August 3, 2024			July 29, 2023
Net loss	$	(847	)	$	(8,509	)	$	(17,627	)	$	(26,891	)
Weighted average common shares for basic loss per share:		19,284			19,311			19,375			19,254
Dilutive effect of stock options and restricted stock		—			—			—			—
Weighted average common shares for diluted loss per share:		19,284			19,311			19,375			19,254
Basic loss per share	$	(0.04	)	$	(0.44	)	$	(0.91	)	$	(1.40	)
Diluted loss per share	$	(0.04	)	$	(0.44	)	$	(0.91	)	$	(1.40	)

There were 0.6 million and 0.4 million anti-dilutive common shares related to stock-based awards for the three months ended August 3, 2024 and July 29, 2023, respectively. There were 0.7 million and 0.5 million anti-dilutive common shares related to stock-based awards for the six months ended August 3, 2024 and July 29, 2023, respectively.

Item 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes included elsewhere in this document. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those discussed in “Item 1A Risk Factors” in our Form 10-K filed with the SEC on March 14, 2024 and in this Form 10-Q.

Forward-looking statements relate to our expectations for future events and future financial performance. Generally, the words “anticipates,” “expects,” “intends,” “may,” “should,” “plans,” “believes,” “predicts,” “potential,” “continue” and similar expressions identify forward-looking statements. Forward-looking statements involve risks and uncertainties, and future events and circumstances could differ significantly from those anticipated in the forward-looking statements. These statements are only predictions. Actual events or results may differ materially. Factors which could affect our financial results are described below under the heading “Risk Factors” and in “Item 1A Risk Factors” of our Form 10-K referred to in the preceding paragraph. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Moreover, neither we nor any other person assume responsibility for the accuracy and completeness of the forward-looking statements. We undertake no duty to update any of the forward-looking statements after the date of this report to conform such statements to actual results or to changes in our expectations.

Fiscal 2024 is the 52-week period ending February 1, 2025. Fiscal 2023 was the 53-week period ending February 3, 2024. The first six months of fiscal 2024 was the 26-week period ended August 3, 2024. The first six months of fiscal 2023 was the 26-week period ended July 29, 2023.

“Zumiez,” the “Company,” “we,” “us,” “its,” “our” and similar references refer to Zumiez Inc. and its wholly-owned subsidiaries.

General

Net sales constitute gross sales (net of actual and estimated returns and deductions for promotions) and shipping revenue. Net sales include our store sales and our ecommerce sales. We record the sale of gift cards as a current liability and recognize revenue when a customer redeems a gift card Additionally, the portion of gift cards that will not be redeemed (“gift card breakage”) is recognized based on our historical redemption rate in proportion to the pattern of rights exercised by the customer.

We report “comparable sales” based on net sales beginning on the first anniversary of the first day of operation of a new store or ecommerce business. We operate a sales strategy that integrates our stores with our ecommerce platform. There is significant interaction between our store sales and our ecommerce sales channels and we believe that they are utilized in tandem to serve our customers. Therefore, our comparable sales also include our ecommerce sales. Changes in our comparable sales between two periods are based on net sales of store or ecommerce businesses which were in operation during both of the two periods being compared and, if a store or ecommerce business is included in the calculation of comparable sales for only a portion of one of the two periods being compared, then that store or ecommerce business is included in the calculation for only the comparable portion of the other period. Any increase or decrease less than 25% in square footage of an existing comparable store, including remodels and relocations within the same mall, or temporary closures less than seven days does not eliminate that store from inclusion in the calculation of comparable sales. Any store or ecommerce business that we acquire will be included in the calculation of comparable sales after the first anniversary of the acquisition date. Current year foreign exchange rates are applied to both current year and prior year comparable sales to achieve a consistent basis for comparison. There may be variations in the way in which some of our competitors and other apparel retailers calculate comparable sales. As a result, data herein regarding our comparable sales may not be comparable to similar data made available by our competitors or other retailers.

Cost of goods sold consists of branded merchandise costs and our private label merchandise costs including design, sourcing, importing and inbound freight costs. Our cost of goods sold also includes shrinkage, buying, occupancy, distribution and warehousing costs (including associated depreciation) and freight costs for store merchandise transfers. This may not be comparable to the way in which our competitors or other retailers compute their cost of goods sold. Cash consideration received from vendors is reported as a reduction of cost of goods sold if the inventory has sold, a reduction of the carrying value of the inventory if the inventory is still on hand, or a reduction of selling, general and administrative expense if the amounts are reimbursements of specific, incremental and identifiable costs of selling the vendors’ products.

With respect to the freight component of our ecommerce sales, amounts billed to our customers are included in net sales and the related freight cost is charged to cost of goods sold.

Selling, general and administrative expenses consist primarily of store personnel wages and benefits, administrative staff and infrastructure expenses, freight costs for merchandise shipments from the distribution centers to the stores, store supplies, depreciation on fixed assets at our home office and stores, facility expenses, training expenses and advertising and marketing costs. Credit card fees, insurance, public company expenses, legal expenses, incentive compensation, stock-based compensation and other miscellaneous operating costs are also included in selling, general and administrative expenses. This may not be comparable to the way in which our competitors or other retailers compute their selling, general and administrative expenses.

Key Performance Indicators

Our management evaluates the following items, which we consider key performance indicators, in assessing our performance:

Net sales. Net sales constitute gross sales, net of sales returns and deductions for promotions, and shipping revenue. Net sales includes comparable sales and new store sales for all our store and ecommerce businesses. We consider net sales to be an important indicator of our current performance. Net sales results are important to achieve leveraging of our costs, including store payroll and store occupancy. Net sales also have a direct impact on our operating profit, cash and working capital.

Gross profit. Gross profit measures whether we are optimizing the price and inventory levels of our merchandise. Gross profit is the difference between net sales and cost of goods sold. Any inability to obtain acceptable levels of initial markups or any significant increase in our use of markdowns could have an adverse effect on our gross profit and results of operations.

Operating profit. We view operating profit as a key indicator of our success. Operating profit is the difference between gross profit and selling, general and administrative expenses. The key drivers of operating profit are net sales, gross profit, our ability to control selling, general and administrative expenses and our level of capital expenditures affecting depreciation expense.

Diluted earnings per share. Diluted earnings per share is based on the weighted average number of common shares and common share equivalents outstanding during the period. We view diluted earnings per share as a key indicator of our success in increasing shareholder value.

Trends and Uncertainties Affecting Our Results and Comparability

We have been, and we expect to continue to be affected by a number of factors that may cause actual results to differ from our historical results or current expectations. These factors include the impact of foreign currency rates; changes in laws, including U.S. tax law changes; fluctuations in variable costs, and changes in general economic conditions in the markets in which we operate. Additionally, we have experienced increased costs during 2023 and 2024. Our ability to raise our selling prices depends on market conditions and there may be periods during which we are unable to fully recover increases in our costs or experience an adverse impact on demand due to pricing actions. We believe higher consumer price inflation has resulted in reduced consumer confidence and consumer spending which negatively impacted our sales during fiscal 2023 and the first six months of fiscal 2024.

Results of Operations

The following table presents selected items on the condensed consolidated statements of loss as a percent of net sales:


	Three Months Ended								Six Months Ended
	August 3, 2024				July 29, 2023				August 3, 2024				July 29, 2023
Net sales		100.0		%		100.0		%		100.0		%		100.0		%
Cost of goods sold		65.8				68.3				68.1				70.6
Gross profit		34.2				31.7				31.9				29.4
Selling, general and administrative expenses		34.4				37.1				37.2				37.8
Operating loss		(0.2	)			(5.4	)			(5.3	)			(8.4	)
Interest and other income, net		0.5				0.6				0.4				0.4
Loss before income taxes		0.3				(4.8	)			(4.9	)			(8.0	)
Benefit from income taxes		0.7				(0.4	)			(0.4	)			(0.9	)
Net loss		(0.4	)	%		(4.4	)	%		(4.5	)	%		(7.1	)	%

Three Months (13 weeks) Ended August 3, 2024 Compared With Three Months (13 weeks) Ended July 29, 2023

Net Sales

Net sales were $210.2 million for the three months ended August 3, 2024 compared to $194.4 million for the three months ended July 29, 2023, an increase of $15.8 million or 8.1%. The increase in sales was driven by a calendar shift including an additional week of back-to-school season during the second quarter worth 5.3% of the sales growth and sales increases in our North America business that were offset by unfavorable results in Europe. While overall sales trends have continued in a positive trajectory and our overall business improved, sales were still affected by continued inflationary pressures on the consumer and continued challenges in competition for the discretionary dollar. By region, North America sales increased $16.7 million or 10.4% and other international sales (which consists of Europe and Australia sales) decreased $0.9 million or 2.6% and for the three months ended August 3, 2024 compared to the three months ended July 29, 2023. Excluding the impact of changes in foreign exchange rates, North America sales increased $16.9 million or 10.6% and other international sales decreased $0.6 million or -1.7% for the three months ended August 3, 2024 compared to the three months ended July 29, 2023.

Comparable sales increased 3.6% for the three months ended August 3, 2024 driven by an increase in dollars per transaction that was offset by a decrease in transactions. Dollars per transaction increased due to an increase in both average unit retail and units per transaction. By category, net sales were primarily driven by an increase in men's clothing, women's clothing, followed by footwear, partially offset by accessories and hardgoods.

Gross Profit

Gross profit was $71.8 million for the three months ended August 3, 2024 compared to $61.7 million for the three months ended July 29, 2023, an increase of $10.1 million, or 16.4%. As a percent of net sales, gross profit increased 250 basis points for the three months ended August 3, 2024 to 34.2%. The increase was primarily driven by a 140 basis point leverage in store occupancy cost, a 90 basis point leverage in web shipping costs, and a 20 basis point leverage in distribution center costs while product margin (defined as net sales minus cost of goods sold excluding shrinkage, buying, occupancy, distribution and warehousing costs and freight costs for store merchandise transfers) remained flat.

Selling, General and Administrative Expenses

Selling, general and administrative (“SG&A”) expenses were $72.2 million for both the three months ended August 3, 2024 and for the three months ended July 29, 2023. SG&A expenses as a percent of net sales decreased 280 basis points for the three months ended August 3, 2024 to 34.4%. The decrease was primarily driven by 100 basis points decrease in store wages tied to both leverage on higher sales as well as reduction of hours offset by rate increase, 80 basis points due to decrease in corporate costs, 50 basis points due to store costs not tied to wages primarily impacted by leverage on higher sales, 50 basis points due timing of employee training, 20 basis points leverage in non-store wages, partially offset by 30 basis point increase in annual incentive compensation.

Net Loss

Net loss for the three months ended August 3, 2024 was $0.8 million, or $0.04 loss per diluted share, compared with net loss of $8.5 million, or $0.44 loss per diluted share, for the three months ended July 29, 2023. Our effective income tax rate for the three months ended August 3, 2024 was a 252.1% provision for income taxes compared to an 8.5% benefit from income taxes for the three months ended July 29, 2023. The increase in effective income tax rate was primarily due to the allocation of losses across the jurisdictions that we operate.

Six Months (26 weeks) Ended August 3, 2024 Compared With Six Months (26 weeks) Ended July 29, 2023

Net Sales

Net sales were $387.6 million for the six months ended August 3, 2024, compared to $377.3 million for the six months ended July 29, 2023, an increase of $10.3 million or 2.7%. The increase in sales was driven by a calendar shift including an additional week of back-to-school season during the first half worth 3.1% of the sales growth. While overall sales trends have continued in a positive trajectory and certain categories of our business improved, sales were still affected by continued inflationary pressures on the consumer and continued challenges in competition for the discretionary dollar. By region, North America sales increased $15.4 million or 5.1% and other international sales (which consists of Europe and Australia sales) decreased $5.1 million or 7.0% and for the six months ended August 3, 2024, compared to the six months ended July 29, 2023. Excluding the impact of changes in foreign exchange rates, North

America sales increased $15.7 million or 5.2% and other international sales decreased $4.7 million or -6.4% for the six months ended August 3, 2024 compared to the six months ended July 29, 2023.

Comparable sales increased 0.8% for the six months ended August 3, 2024, driven by an increase in dollars per transaction that was offset by a decrease in transactions. Dollars per transaction increased due to an increase in both average unit retail and units per transaction. By category, net sales were primarily driven by an increase in men's clothing, women's clothing, followed by footwear, partially offset by accessories and hardgoods.

Gross Profit

Gross profit was $123.7 million for the six months ended August 3, 2024, compared to $111.0 million for the six months ended July 29, 2023, an increase of $12.7 million, or 11.4%. As a percent of net sales, gross profit increased 250 basis points for the six months ended August 3, 2024, to 31.9%. The increase was primarily driven by a 130 basis point leverage in web shipping costs, a 70 basis point leverage in store occupancy cost, and a 50 basis point leverage in distribution center costs, while product margin (defined as net sales minus cost of goods sold excluding shrinkage, buying, occupancy, distribution and warehousing costs and freight costs for store merchandise transfers) remained flat.

Selling, General and Administrative Expenses

Selling, general and administrative (“SG&A”) expenses were $144.2 million for the six months ended August 3, 2024, compared to $142.9 million for the six months ended July 29, 2023, an increase of $1.3 million, or 0.9%. SG&A expenses as a percent of net sales decreased 70 basis points for the six months ended August 3, 2024, to 37.2%. The decrease was primarily driven by 50 basis points decrease in corporate costs, 30 basis points decrease in store wages tied to higher sales and reduction of store hours, 30 basis points due to store costs not tied to wages, partially offset by 40 basis point increase in annual incentive compensation.

Net Loss

Net loss for the six months ended August 3, 2024, was $17.6 million, or $0.91 loss per diluted share, compared with net loss of $26.9 million, or $1.40 loss per diluted share, for the six months ended July 29, 2023. Our effective income tax rate for the six months ended August 3, 2024, was a 7.4% benefit from income taxes compared to an 11.3% benefit from income taxes for the six months ended July 29, 2023.

Liquidity and Capital Resources

Our primary uses of cash are for operational expenditures, inventory purchases and capital investments, including new stores, store remodels, store relocations, store fixtures and ongoing infrastructure improvements. Additionally, we may use cash for the repurchase of our common stock. Historically, our main source of liquidity has been cash flows from operations.

The significant components of our working capital are inventories and liquid assets such as cash, cash equivalents, current marketable securities and receivables, reduced by accounts payable, accrued payroll and accrued expenses. Our working capital position benefits from the fact that we generally collect cash from sales to customers the same day or within several days of the related sale, while we typically have longer payment terms with our vendors.

Our capital requirements include construction and fixture costs related to the opening of new stores and remodel and relocation expenditures for existing stores. Future capital requirements will depend on many factors, including the pace of new store openings, the availability of suitable locations for new stores and the nature of arrangements negotiated with landlords. Our net investment to open a new store has varied significantly in the past due to a number of factors, including the geographic location and size of the new store, and is likely to vary significantly in the future.

During fiscal 2024, we expect to spend approximately $14.0 million to $16.0 million on capital expenditures, a majority of which will relate to leasehold improvements and fixtures for the approximately 7 new stores we remain on track to open in fiscal 2024 and remodels or relocations of existing stores. There can be no assurance that the number of stores that we actually open in fiscal 2024 will not be different from the number of stores we plan to open, or that actual fiscal 2024 capital expenditures will not differ from our expectations.

Operating Activities

Net cash used in operating activities decreased by $8.8 million to $15.4 million used in operating activities for the six months ended August 3, 2024 from $24.3 million used in operating activities for the six months ended July 29, 2023. Net cash used in operating activities was $15.4 million for the six months ended August 3, 2024 related to $44.0 million in unfavorable changes in our operating assets and liabilities and a $17.6 million net loss, excluding $46.2 million of noncash charges included within net loss for the period. Net cash used in operating activities was $24.3 million for the six months ended July 29, 2023 related to $42.5 million in unfavorable changes in our operating assets and liabilities and a $26.9 million net loss, excluding $45.1 million of noncash charges included within net loss for the period. Our operating cash flows generally result primarily from cash received from our customers, offset by cash payments we make for inventory, employee compensation, store occupancy expenses and other operational expenditures. Cash received from our customers generally corresponds to our net sales. Because our customers primarily use credit cards or cash to buy from us, our receivables from customers settle quickly. Historically, changes to our operating cash flows have been driven primarily by changes in operating income, which is impacted by changes to non-cash items such as depreciation, amortization and accretion, deferred taxes, and changes to the components of working capital.

Investing Activities

Net cash provided by investing activities was $15.9 million for the six months ended August 3, 2024 related to $6.3 million of capital expenditures primarily for new store openings and existing store remodels or relocations, partially offset by $22.2 million in net sales of marketable securities. Net cash used in investing activities was $1.4 million for the six months ended July 29, 2023, related to $11.9 million of capital expenditures primarily for new store openings and existing store remodels or relocation, partially offset by $10.5 million in net sales of marketable securities.

Financing Activities

Net cash used in financing activities for the six months ended August 3, 2024 was $19.4 million, related $19.6 million used in the repurchase of common stock and $0.1 million in payments for tax withholding obligations upon vesting of restricted stock partially offset by $0.3 million in proceeds from the issuance and exercise of stock-based awards. Net cash provided by financing activities for the six months ended July 29, 2023 was $0.3 million, related $0.5 million in proceeds from the issuance and exercise of stock-based awards, partially offset by $0.2 million in payments for tax withholding obligations upon vesting of restricted stock.

Sources of Liquidity

Our most significant sources of liquidity continue to be funds generated by operating activities and available cash, cash equivalents and current marketable securities. We expect these sources of liquidity will be sufficient to meet our foreseeable cash requirements for operations and planned capital expenditures for at least the next twelve months. Beyond this time frame, if cash flows from operations are not sufficient to meet our capital requirements, then we will be required to obtain additional equity or debt financing in the future. However, there can be no assurance that equity or debt financing will be available to us when we need it or, if available, that the terms will be satisfactory to us and not dilutive to our then-current shareholders.

Additionally, we previously maintained a secured credit agreement with Wells Fargo Bank, N.A., which provided us with a senior secured credit facility (“credit facility”) of up to $25.0 million through December 1, 2024. The credit facility was available for working capital and other general corporate purposes and provided for the issuance of standby and commercial letters of credit. The credit facility was secured by a first-priority security interest in substantially all personal property (but not the real property) of the borrowers and guarantors. The credit agreement was cancelled on May 4, 2024. Outstanding line of credits were transitioned to a cash backed status using restricted cash accounts.

There were no borrowings or open commercial letters of credit outstanding under the secured credit facility at February 3, 2024. We had open commercial letters of credit outstanding of less than $0.5 at August 3, 2024 and no open commercial letters of credit outstanding as of February 3, 2024. We had $2.7 million in issued, but undrawn, standby letters of credit at August 3, 2024 and $3.5 million in issued, but undrawn, standby letters of credit at February 3, 2024. As of August 3, 2024 the open standby letters of credit are backed by restricted cash deposits at the bank.

At August 3, 2024, we did not have any “off-balance sheet arrangements” as defined in relevant SEC regulations that are reasonably likely to have a current or future effect on our financial condition, results of operation, liquidity, capital expenditures or capital resources.

Critical Accounting Estimates

Our condensed consolidated financial statements are prepared in accordance with U.S. GAAP. In connection with the preparation of our condensed consolidated financial statements, we are required to make assumptions and estimates about future events and apply judgments that affect the reported amounts of assets, liabilities, revenue, expenses and the related disclosures. We base our assumptions, estimates and judgments on historical experience, current trends and other factors that we believe to be relevant at the time our condensed consolidated financial statements are prepared. On a regular basis, we review the accounting policies, assumptions, estimates and judgments to ensure that our condensed consolidated financial statements are presented fairly and in accordance with U.S. GAAP. However, because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates, and such differences could be material.

There have been no significant changes to our critical accounting estimates as discussed in our Annual Report on Form 10-K for the fiscal year ended February 3, 2024.

Risk Factors

Investing in our securities involves a high degree of risk. The following risk factors, issues and uncertainties should be considered in evaluating our future prospects. In particular, keep these risk factors in mind when you read “forward-looking” statements elsewhere in this report. Forward-looking statements relate to our expectations for future events and time periods. Generally, the words “anticipates,” “expects,” “intends,” “may,” “should,” “plans,” “believes,” “predicts,” “potential,” “continue” and similar expressions identify forward-looking statements. Forward-looking statements involve risks and uncertainties, and future events and circumstances could differ significantly from those anticipated in the forward-looking statements. Any of the following risks could harm our business, operating results or financial condition and could result in a complete loss of your investment. Additional risks and uncertainties that are not yet identified or that we currently think are immaterial may also harm our business and financial condition in the future.

U.S. and global economic and political uncertainty, coupled with cyclical economic trends in retailing, could have a material adverse effect on our results of operations.

Our retail market historically has been subject to substantial cyclicality. As the U.S. and global economic and political conditions change, the trends in discretionary consumer spending become unpredictable and discretionary consumer spending could be reduced due to uncertainties about the future. Economic and consumer confidence can also be affected by a variety of factors, including housing prices, unemployment rates and inflation. When disposable income decreases or discretionary consumer spending is reduced due to a decline in consumer confidence, purchases of apparel and related products may decline. A deterioration in macroeconomic conditions or consumer confidence or uncertainty in the U.S. and global economies and political environment could have a material adverse impact on our results of operations and financial position.

In times when there is a decline in disposable income and consumer confidence, there could be a trend to consumers seeking more inexpensive or value-oriented merchandise. As a retailer that sells a substantial majority of branded merchandise, this could disproportionately impact us more than vertically integrated private label retailers or we may be forced to rely on promotional sales to compete in our market which could have a material adverse effect on our financial position.

Failure to anticipate, identify and respond to changing fashion trends, customer preferences and other fashion-related factors could have a material adverse effect on us.

Customer tastes and fashion trends in our market are volatile and tend to change rapidly. Our success depends on our ability to effectively anticipate, identify and respond to changing fashion tastes and consumer preferences, and to translate market trends into appropriate, saleable product offerings in a timely manner. If we are unable to successfully anticipate, identify or respond to changing styles or trends and misjudge the market for our products or any new product lines, including adequately anticipating the correct mix and trends of our private label merchandise, our sales may be lower than predicted and we may be faced with a substantial amount of unsold inventory or missed opportunities. In response to such a situation, we may be forced to rely on markdowns or promotional sales to dispose of excess or slow-moving inventory, which could have a material adverse effect on our results of operations.

We may be unable to compete favorably in the highly competitive retail industry, and if we lose customers to our competitors, our sales could decrease.

The teenage and young adult retail apparel, footwear, accessories and hardgoods industry is highly competitive. We compete with other retailers for vendors, teenage and young adult customers, suitable store locations, qualified store associates, management personnel, online marketing content, social media engagement and ecommerce traffic. Some of our competitors are larger than we are and have substantially greater financial and marketing resources, including advanced ecommerce market capabilities. Additionally, some of our competitors may offer more options for free and/or expedited shipping for ecommerce sales. Direct competition with these and other retailers may increase significantly in the future, which could require us, among other things, to lower our prices and could result in the loss of our customers. Current and increased competition could have a material adverse effect on our business, results of operations and financial condition.

We could incur charges due to impairment of goodwill, intangible assets and other long-term assets.

We have recorded goodwill, which is the premium paid over the fair market value of the acquired tangible and intangible assets paid in an acquisition, as part of our prior year acquisitions. Goodwill and intangible assets, which consist of tradenames and trademarks, are tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Any event that impacts our results negatively could lead to impairment of these assets which could have negative impacts on our earnings. Long-term assets, primarily fixed assets and operating lease right-of-use assets, are also subject to testing for impairment if events or changes in circumstances indicate that the asset might be impaired. A significant amount of judgment is involved in our impairment assessment. If actual results fall short of our estimates and assumptions used in estimating revenue growth, future cash

flows and asset fair values, we could incur further impairment charges for goodwill, intangible assets, or long-term assets, which could have an adverse effect on our results of operations.

Most of our merchandise is produced by foreign manufacturers; therefore, the availability, quality and costs of our merchandise may be negatively affected by risks associated with international trade and other international conditions.

Most of our merchandise is produced by manufacturers around the world. Some of these facilities are located in regions that may be affected by natural disasters, public health concerns, or emergencies, such as COVID-19 and other communicable diseases or viruses, political instability or other conditions that could cause a disruption in trade. Trade restrictions such as increased tariffs or quotas, or both, could also increase the cost and reduce the supply of merchandise available to us. Any reduction in merchandise available to us or any increase in its cost due to tariffs, quotas or local issues that disrupt trade could have a material adverse effect on our results of operations. This includes costs to comply with regulatory developments regarding the use of “conflict minerals,” certain minerals originating from the Democratic Republic of Congo and adjoining countries, which may affect the sourcing and availability of raw materials used by manufacturers and subject us to increased costs associated with our products, processes or sources of our inputs. Our business could be adversely affected by disruptions in the supply chain, such as strikes, work stoppages, or port closures.

A decrease in consumer traffic could cause our sales to be less than expected.

We depend heavily on generating customer traffic to our stores and websites. This includes locating many of our stores in prominent locations within successful shopping malls. Sales at these stores are derived, in part, from the volume of traffic in those malls. Our stores benefit from the ability of a mall’s “anchor” tenants, generally large department stores and other area attractions, to generate consumer traffic in the vicinity of our stores and the continuing popularity of malls as shopping destinations. In addition, some malls that were in prominent locations when we opened our stores may cease to be viewed as prominent. If this trend continues or if the popularity of mall shopping continues to decline generally among our customers, our sales may decline, which would impact our results of operations. These risks may include circumstances that are not within our control, such as changes in fair market rent. Furthermore, we depend on generating increased traffic to our ecommerce business and converting that traffic into sales. This requires us to achieve expected results from our marketing and social media campaigns, accuracy of data analytics, reliability of our website, network, and transaction processing and a high-quality online customer experience. Our sales volume and customer traffic in our stores and on our websites generally could be adversely affected by, among other things, economic downturns, competition from other ecommerce retailers, non-mall retailers and other malls, increases in gasoline prices, fluctuations in exchange rates in border or tourism-oriented locations and the closing or decline in popularity of other stores in the malls in which we are located. Also, geopolitical events, including the threat of terrorism, or widespread health emergencies, such as COVID-19 and other communicable diseases, viruses, or pandemics, could cause people to avoid our stores in shopping malls and alter consumer trends. An uncertain economic outlook or continued bankruptcies of mall-based retailers could curtail new shopping mall development, decrease shopping mall and ecommerce traffic, reduce the number of hours that shopping mall operators keep their shopping malls open or force them to cease operations entirely. A reduction in consumer traffic to our stores or websites could have a material adverse effect on our business, results of operations and financial condition.

Our North America growth strategy depends on our ability to grow customer engagement in our current markets, which could strain our resources and cause the performance of our existing business to suffer.

Our North America growth largely depends on our ability to optimize our customer engagement. We intend to continue to open new stores in future years, while remodeling a portion of our existing store base such that we have the optimum number of stores in any given trade area. The growth strategy may present competitive, merchandising, hiring and distribution challenges that are different from those currently encountered. In addition, it will place increased demands on our operational, managerial and administrative resources. These increased demands could cause us to operate our business less effectively, which in turn could cause deterioration in the financial performance of our individual stores and our overall business. In addition, successful execution of our growth strategy may require that we obtain additional financing, and we may not be able to obtain that financing on acceptable terms or at all.

Our plans for international expansion include risks that could have a negative impact on our results of operations.

We plan to continue to open new stores in the European and Australian markets. We may continue to expand internationally into other markets, either organically or through additional acquisitions. International markets may have different competitive conditions, consumer tastes and discretionary spending patterns than our existing North America market. The expansion strategy may present competitive, merchandising, hiring and distribution challenges that are different from those currently encountered. In addition, it will place increased demands on our operational, managerial and administrative resources. As a result, operations in international markets may be less successful than our operations in the North America. Additionally, consumers in international markets may not be familiar with us or the brands we sell, and we may need to build brand awareness in the markets. Furthermore, we have limited experience with the legal and regulatory environments and market practices in new international markets and cannot guarantee that we will be able to penetrate or successfully operate in these new international markets. We also expect to incur additional costs in complying

with applicable foreign laws and regulations as they pertain to both our products and our operations. Accordingly, for the reasons noted above, our plans for international expansion include risks that could have a negative impact on our results of operations.

Failure to successfully integrate any businesses that we acquire could have an adverse impact on our results of operations and financial performance.

We may, from time to time, acquire businesses, such as our acquisition of Blue Tomato and Fast Times. We may experience difficulties in integrating any businesses we may acquire, including their stores, websites, facilities, personnel, financial systems, distribution, operations and general operating procedures, and any such acquisitions may also result in the diversion of our capital and our management’s attention from other business issues and opportunities. If we experience difficulties in integrating acquisitions or if such acquisitions do not provide the benefits that we expect to receive, we could experience increased costs and other operating inefficiencies, which could have an adverse effect on our results of operations and overall financial performance.

Our sales and inventory levels fluctuate on a seasonal basis. Accordingly, our quarterly results of operations are volatile and may fluctuate significantly.

Our quarterly results of operations have fluctuated significantly in the past and can be expected to continue to fluctuate significantly in the future. Our sales and profitability are typically disproportionately higher in the third and fourth fiscal quarters of each fiscal year due to increased sales during the back-to-school and winter holiday shopping seasons. Sales during these periods cannot be used as an accurate indicator of annual results. As a result of this seasonality, any factors negatively affecting us during the last half of the year, including unfavorable economic conditions, adverse weather or our ability to acquire seasonal merchandise inventory, could have a material adverse effect on our financial condition and results of operations for the entire year. In addition, in order to prepare for the back-to-school and winter holiday shopping seasons, we must order and keep in stock significantly more merchandise than we carry during other times of the year. Any unanticipated decrease in demand for our products during these peak shopping seasons could require us to sell excess inventory at a substantial markdown, which could have a material adverse effect on our business, results of operations and financial condition.

Our quarterly results of operations are affected by a variety of other factors, including calendar shifts of holiday or seasonal periods, timing of promotional events, general economic conditions, and numerous other items set forth on these risk factors.

Pandemics and other health crises, including COVID-19, could affect our business, financial condition and results of operations in many respects.

The emergence, severity, magnitude and duration of global or regional health crises are uncertain and difficult to predict. A pandemic, such as COVID-19, could affect certain business operations, demand for our products and services, in-stock positions, costs of doing business, availability of labor, access to inventory, supply chain operations, our ability to predict future performance, exposure to litigation, and our financial performance, among other things. Other factors and uncertainties include, but are not limited to:

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the severity and duration of pandemics;

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evolving macroeconomic factors, including general economic uncertainty, unemployment rates, and recessionary pressures;

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changes in labor markets affecting us and our suppliers;

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unknown consequences on our business performance and initiatives stemming from the substantial investment of time and other resources to the pandemic response;

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the pace of post-pandemic recovery;

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the long-term impact of the pandemic on our business, including consumer behaviors; and

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disruption and volatility within the financial and credit markets.

If our information systems fail to function effectively, or do not scale to keep pace with our planned growth, our operations could be disrupted and our financial results could be harmed.

If our information systems, including hardware and software, do not work effectively, this could adversely impact the promptness and accuracy of our transaction processing, financial accounting and reporting and our ability to manage our business and properly forecast operating results and cash requirements. Additionally, we rely on third-party service providers for certain information systems functions. If a service provider fails to provide the data quality, communications, capacity or services we require, the failure could

interrupt our services and could have a material adverse effect on our business, financial condition and results of operations. To manage the anticipated growth of our operations and personnel, we may need to continue to improve our operational and financial systems, transaction processing, procedures, and controls, and in doing so could incur substantial additional expenses that could impact our financial results.

If we fail to meet the requirements to adequately maintain the privacy and security of personal data and business information, we may be subjected to adverse publicity, litigation, and significant expenses.

Information systems are susceptible to an increasing threat of continually evolving cybersecurity risks. If we fail to maintain or adequately maintain security systems, devices, and activity monitoring to prevent unauthorized access to our network, systems and databases containing confidential, proprietary and personally identifiable information, we may be subject to additional risk of adverse publicity, litigation or significant expense. Nevertheless, if unauthorized parties gain access to our networks, systems, or databases, they may be able to steal, publish, delete or modify confidential information. In such circumstances, we could be held liable to our customers or other parties or be subject to regulatory or other actions for breaching privacy rules and we may be exposed to reputation damage and loss of customers’ trust and business. This could result in costly investigations and litigation, civil or criminal penalties and adverse publicity that could adversely affect our financial condition, results of operations and reputation. Actual or anticipated attacks may cause us to incur increasing costs, including costs to deploy additional resources, train employees and engage third parties. Further, the regulatory environment surrounding information security, cybersecurity and privacy is increasingly demanding. If we are unable to comply with the new and changing security standards, we may be subject to fines, restrictions, and financial exposure, which could adversely affect our retail operations.

Significant fluctuations and volatility in the cost of raw materials, global labor, shipping and other costs related to the production of our merchandise may have a material adverse effect on our business, results of operations and financial conditions.

Increases in the cost of raw materials, global labor costs, freight costs and other shipping costs in the production and transportation of our merchandise can result in higher costs for this merchandise. The costs for these products are affected by weather, consumer demand, government regulation, speculation on the commodities market and other factors that are generally unpredictable and beyond our control. Our gross profit and results of operations could be adversely affected to the extent that the selling prices of our products do not increase proportionately with the increases in the costs of raw materials. Increasing labor costs and oil-related product costs, such as manufacturing and transportation costs, could also adversely impact gross profit. Additionally, significant changes in the relationship between carrier capacity and shipper demand could increase transportation costs, which could also adversely impact gross profit.

Fluctuations in foreign currency exchange rates could impact our financial condition and results of operations.

We are exposed to foreign currency exchange rate risk with respect to our sales, profits, assets and liabilities denominated in currencies other than the U.S. dollar. As a result, the fluctuation in the value of the U.S. dollar against other currencies could have a material adverse effect on our results of operations, financial condition and cash flows. Upon translation, operating results may differ materially from expectations. As we continue to expand our international operations, our exposure to exchange rate fluctuations will increase. Tourism spending may be affected by changes in currency exchange rates, and as a result, sales at stores with higher tourism traffic may be adversely impacted by fluctuations in currency exchange rates. Further, although the prices charged by vendors for the merchandise we purchase are primarily denominated in U.S. dollars, a decline in the relative value of the U.S. dollar to foreign currencies could lead to increased merchandise costs, which could negatively affect our competitive position and our results of operations.

Our business could be adversely affected by increased labor costs, including costs related to an increase in minimum wage and health care.

Labor is one of the primary components in the cost of operating our business. Increased labor costs, whether due to competition, unionization, increased minimum wage, state unemployment rates, health care, mandated safety protocols, or other employee benefits costs may adversely impact our operating profit. A considerable amount of our store team members are paid at rates related to the federal or state minimum wage and any changes to the minimum wage rate may increase our operating expenses. Furthermore, inconsistent increases in state and or city minimum wage requirements limit our ability to increase prices across all markets and channels. Additionally, we are self-insured with respect to our health care coverage in the U.S. and do not purchase third party insurance for the health insurance benefits provided to employees with the exception of pre-defined stop loss coverage, which helps limit the cost of large claims. There is no assurance that future health care legislation will not adversely impact our results or operations.

Although none of our North America and Australia employees are currently covered by collective bargaining agreements, we cannot guarantee that they will not elect to be represented by labor unions in the future, which could increase our labor costs and could subject us to the risk of work stoppages and strikes. Any such failure to meet our staffing needs, any material increases in employee

turnover rates, any increases in labor costs or any work stoppages, interruptions or strikes could have a material adverse effect on our business or results of operations.

Our business could suffer if a manufacturer fails to use acceptable labor and environmental practices.

We do not control our vendors or the manufacturers that produce the products we buy from them, nor do we control the labor and environmental practices of our vendors and these manufacturers. The violation of labor, safety, environmental and/or other laws and standards by any of our vendors or these manufacturers, or the divergence of the labor and environmental practices followed by any of our vendors or these manufacturers from those generally accepted as ethical in the U.S., could interrupt, or otherwise disrupt, the shipment of finished products to us or damage our reputation. Any of these, in turn, could have a material adverse effect on our reputation, financial condition and results of operations. In that regard, most of the products we sell are manufactured internationally, primarily in Asia, Mexico and Central America, which may increase the risk that the labor and environmental practices followed by the manufacturers of these products may differ from those considered acceptable in the U.S.

Additionally, our products are subject to regulation of, and regulatory standards set by various governmental authorities with respect to quality and safety. These regulations and standards may change from time to time. Our inability to comply on a timely basis with regulatory requirements could result in significant fines or penalties, which could adversely affect our reputation and sales. Issues with the quality and safety of merchandise we sell, regardless of our culpability, or customer concerns about such issues, could result in damage to our reputation, lost sales, uninsured product liability claims or losses, merchandise recalls and increased costs.

If we fail to develop and maintain good relationships with vendors, or if a vendor is otherwise unable or unwilling to supply us with adequate quantities of their products at acceptable prices, our business and financial performance could suffer.

Our business is dependent on developing and maintaining good relationships with a large number of vendors to provide our customers with an extensive selection of current and relevant brands. In addition to maintaining our large number of current vendor relationships, each year we are identifying, attracting and launching new vendors to provide a diverse and unique product assortment. We believe that we generally are able to obtain attractive pricing and terms from vendors because we are perceived as a desirable customer, and deterioration in our relationship with our vendors could have a material adverse effect on our business.

However, there can be no assurance that our current vendors or new vendors will provide us with an adequate supply or quality of products or acceptable pricing. Our vendors could discontinue selling to us, raise the prices they charge, sell through direct channels or allow their merchandise to be discounted by other retailers. There can be no assurance that we will be able to acquire desired merchandise in sufficient quantities on terms acceptable to us in the future. In addition, certain vendors sell their products directly to the retail market and therefore compete with us directly and other vendors may decide to do so in the future. There can be no assurance that such vendors will not decide to discontinue supplying their products to us, supply us only less popular or lower quality items, raise the prices they charge us or focus on selling their products directly.

In addition, a number of our vendors are smaller, less capitalized companies and are more likely to be impacted by unfavorable general economic and market conditions than larger and better capitalized companies. These smaller vendors may not have sufficient liquidity during economic downturns to properly fund their businesses and their ability to supply their products to us could be negatively impacted. Any inability to acquire suitable merchandise at acceptable prices, or the loss of one or more key vendors, could have a material adverse effect on our business, results of operations and financial condition.

Our business is susceptible to weather conditions that are out of our control, including the potential risks of unpredictable weather patterns and any weather patterns associated with naturally occurring global climate change, and the resultant unseasonable weather could have a negative impact on our results of operations.

Our business is susceptible to unseasonable weather conditions. For example, extended periods of unseasonably warm temperatures during the winter season or cool weather during the summer season (including any weather patterns associated with global warming and cooling) could render a portion of our inventory incompatible with those unseasonable conditions. These prolonged unseasonable weather conditions could have a material adverse effect on our business and results of operations.

If we lose key executives or are unable to attract and retain the talent required for our business, our financial performance could suffer.

Our performance depends largely on the efforts and abilities of our key executives. If we lose the services of one or more of our key executives, we may not be able to successfully manage our business or achieve our growth objectives. Furthermore, as our business grows, we will need to attract and retain additional qualified personnel in a timely manner and we may not be able to do so.

Failure to meet our staffing needs could adversely affect our ability to implement our growth strategy and could have a material impact on our results of operations.

Our success depends in part upon our ability to attract, motivate and retain a sufficient number of qualified employees who understand and appreciate our culture and brand and are able to adequately represent this culture. Qualified individuals of the requisite caliber, skills and number needed to fill these positions may be in short supply in some areas and the employee turnover rate in the retail industry is high. Our business depends on the ability to hire and retain qualified technical and support roles for procurement, distribution, ecommerce and back office functions. Competition for qualified employees in these areas could require us to pay higher wages to attract a sufficient number of suitable employees.

If we are unable to hire and retain store managers and store associates capable of consistently providing a high level of customer service, as demonstrated by their enthusiasm for our culture and knowledge of our merchandise, our ability to open new stores may be impaired and the performance of our existing and new stores could be materially adversely affected. We are also dependent upon temporary personnel to adequately staff our operations particularly during busy periods such as the back-to-school and winter holiday seasons. There can be no assurance that we will receive adequate assistance from our temporary personnel, or that there will be sufficient sources of temporary personnel. If we are unable to hire qualified temporary personnel, our results of operations could be adversely impacted.

A decline in cash flows from operations could have a material adverse effect on our business and growth plans.

We depend on cash flow from operations to fund our current operations and our growth strategy, including the payment of our operating leases, wages, store operation costs and other cash needs. If our business does not generate sufficient cash flow from operating activities, and sufficient funds are not otherwise available to us from borrowings under a credit facility or from other sources, we may not be able to pay our operating lease expenses, grow our business, respond to competitive challenges or fund our other liquidity and capital needs, which could have a material adverse effect on our business.

Our business could suffer with the closure or disruption of our home office or our distribution centers.

In the U.S., we rely on a single distribution center located in Corona, California to receive, store and distribute the vast majority of our merchandise to our domestic stores. Internationally, we operate a combined distribution and ecommerce fulfillment center located in Graz, Austria that supports our Blue Tomato ecommerce and store operations in Europe. We operate a distribution center located in Delta, British Columbia, Canada to distribute our merchandise to our Canadian stores. We operate a distribution and ecommerce fulfillment center located in Melbourne, Australia to distribute our merchandise to our Australian stores. Additionally, we are headquartered in Lynnwood, Washington. As a result, unforeseen events, including war, terrorism, other political instability or conflicts, riots, public health issues (including widespread/pandemic illnesses such as coronavirus and other communicable diseases or viruses), a natural disaster or other catastrophic event that affects one of the regions where we operate these centers or our home office could significantly disrupt our operations and have a material adverse effect on our business, results of operations and financial condition.

The effects of war, acts of terrorism, threat of terrorism, or other types of mall violence, could adversely affect our business.

Most of our stores are located in shopping malls. Any threat of terrorist attacks or actual terrorist events, or other types of mall violence, such as shootings or riots, could lead to lower consumer traffic in shopping malls. In addition, local authorities or mall management could close shopping malls in response to security concerns. Mall closures, as well as lower consumer traffic due to security concerns, could result in decreased sales. Additionally, the threat, escalation or commencement of war or other armed conflict elsewhere, could significantly diminish consumer spending, and result in decreased sales. Decreased sales could have a material adverse effect on our business, financial condition and results of operations.

Our inability or failure to protect our intellectual property or our infringement of other’s intellectual property could have a negative impact on our operating results.

We believe that our trademarks and domain names are valuable assets that are critical to our success. The unauthorized use or other misappropriation of our trademarks or domain names could diminish the value of the Zumiez, Blue Tomato, or Fast Times brands, our store concepts, our private label brands or our goodwill and cause a decline in our net sales. Although we have secured or are in the process of securing protection for our trademarks and domain names in a number of countries outside of the U.S., there are certain countries where we do not currently have or where we do not currently intend to apply for protection for certain trademarks. Also, the efforts we have taken to protect our trademarks may not be sufficient or effective. Therefore, we may not be able to prevent other persons from using our trademarks or domain names outside of the U.S., which also could adversely affect our business. We are also subject to the risk that we may infringe on the intellectual property rights of third parties. Any infringement or other intellectual property claim made against us, whether or not it has merit, could be time-consuming, result in costly litigation, cause product delays or require us to pay royalties or license fees. As a result, any such claim could have a material adverse effect on our operating results.

Our operations expose us to the risk of litigation, which could lead to significant potential liability and costs that could harm our business, financial condition or results of operations.

We employ a substantial number of full-time and part-time employees, a majority of whom are employed at our store locations. As a result, we are subject to a large number of federal, state and foreign laws and regulations relating to employment. This creates a risk of potential claims that we have violated laws related to discrimination and harassment, health and safety, wage and hour laws, criminal activity, personal injury and other claims. We are also subject to other types of claims in the ordinary course of our business. Some or all of these claims may give rise to litigation, which could be time-consuming for our management team, costly and harmful to our business.

In addition, we are exposed to the risk of class action litigation. The costs of defense and the risk of loss in connection with class action suits are greater than in single-party litigation claims. Due to the costs of defending against such litigation, the size of judgments that may be awarded against us, and the loss of significant management time devoted to such litigation, we cannot provide assurance that such litigation will not disrupt our business or impact our financial results.

We are involved, from time to time, in litigation incidental to our business including complaints filed by investors. This litigation could result in substantial costs, and could divert management's attention and resources, which could harm our business. Risks associated with legal liability are often difficult to assess or quantify, and their existence and magnitude can remain unknown for significant periods of time.

Failure to comply with federal, state, local or foreign laws and regulations, or changes in these laws and regulations, could have an adverse impact on our results of operations and financial performance.

Our business is subject to a wide array of laws and regulations including those related to employment, trade, consumer protection, transportation, occupancy laws, health care, wage laws, employee health and safety, taxes, privacy, health information privacy, identify theft, customs, truth-in-advertising, securities laws, unsolicited commercial communication and environmental issues. Our policies, procedures and internal controls are designed to comply with foreign and domestic laws and regulations, such as those required by the Sarbanes-Oxley Act of 2002 and the U.S. Foreign Corrupt Practices Act. Although we have policies and procedures aimed at ensuring legal and regulatory compliance, our employees or vendors could take actions that violate these laws and regulations. Any violations of such laws or regulations could have an adverse effect on our reputation, results of operations, financial condition and cash flows. Furthermore, changes in the regulations, the imposition of additional regulations, or the enactment of any new legislation, particularly in the North America and International businesses, could adversely affect our results of operations or financial condition.

Fluctuations in our tax obligations and effective tax rate may result in volatility in our operating results.

We are subject to income taxes in many domestic and foreign jurisdictions. In addition, our products are subject to import and excise duties and/or sales, consumption or value-added taxes in many jurisdictions. We record tax expense based on our estimates of future payments, which include reserves for estimates of probable settlements of domestic and foreign tax audits. At any one time, many tax years are subject to audit by various taxing jurisdictions. There can be no assurance as to the outcome of these audits which may have an adverse effect to our business. In addition, our effective tax rate may be materially impacted by changes in tax rates and duties, the mix and level of earnings or losses by taxing jurisdictions, or by changes to existing accounting rules or regulations. Changes to foreign or domestic tax laws could have a material impact on our financial condition, results of operations or cash flows.

We may fail to meet analyst and investor expectations, which could cause the price of our stock to decline.

Our common stock is traded publicly and various securities analysts and investors follow our financial results and issue reports on us. These reports include information about our historical financial results as well as the analysts' and investors' estimates of our future performance. The analysts' and investors' estimates are based upon their own independent opinions and can be different from our estimates or expectations. If our operating results are below the estimates or expectations of public market analysts and investors, our stock price could decline.

The reduction of total outstanding shares through the execution of a share repurchase program of common stock may increase the risk that a group of shareholders could form a group to become a controlling shareholder.

A share repurchase program may be conducted from time to time under authorization made by our Board of Directors. We do not have a controlling shareholder, nor are we aware of any shareholders that have formed a “group” (defined as when two or more persons agree to act together for the purposes of acquiring, holding, voting or otherwise disposing of the equity securities of an issuer). The reduction of total outstanding shares through the execution of a share repurchase program of common stock may increase the risk that a group of shareholders could form a group to become a controlling shareholder.

A controlling shareholder would have significant influence over, and may have the ability to control, matters requiring approval by our shareholders, including the election of directors and approval of mergers, consolidations, sales of assets, recapitalizations and amendments to our articles of incorporation. Furthermore, a controlling shareholder may take actions with which other shareholders do not agree, including actions that delay, defer or prevent a change of control of the company and that could cause the price that investors are willing to pay for the company’s stock to decline.

Increased scrutiny and changing expectations from stakeholders with respect to the Company’s ESG practices may result in additional costs or risks.

Companies across many industries are facing increasing scrutiny related to their environmental, social and governance practices. Our employees, customers, various types of investors, and other stakeholders are also increasingly focused on ESG practices and in recent years have placed increasing importance on the non-financial impacts. If our ESG practices do not meet stakeholder expectations, which continue to evolve, we may incur additional costs and our brand may be harmed.

Item 3: Quantitative and Qualitative Disclosures About Market Risk

Our market risk profile at August 3, 2024 has not significantly changed since February 3, 2024. Our market risk profile at February 3, 2024 is disclosed in our Annual Report on Form 10-K.

Item 4: Controls and Procedures

Evaluation of Disclosure Controls and Procedures. We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Securities Exchange Act Rule 13a-15(e)). Based on this evaluation, our CEO and CFO concluded that, as of August 3, 2024, our disclosure controls and procedures were effective.

Changes in Internal Control over Financial Reporting. There has been no change in our internal control over financial reporting (as defined in Securities Exchange Act Rule 13a-15(f)) during the three months ended August 3, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We are involved from time to time in litigation incidental to our business. We are unable to predict the outcome of litigated cases. A court determination in any of litigation actions against us could result in significant liability and could have a material adverse effect on our business, results of operations or financial condition.

See Note 5 to the Notes to Condensed Consolidated Financial Statements found in Part I Item 1 of this Form 10-Q (listed under “Litigation” under Commitments and Contingencies).

Item 1A. Risk Factors

Please refer to the Risk Factors set forth in Item 2 of Part I of this Form 10-Q as well as the risk factors previously disclosed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended February 3, 2024. There have been no material changes in the risk factors set forth in our Annual Report on Form 10-K for the year ended February 3, 2024.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer purchases of common stock during the thirteen weeks ended August 3, 2024 are as set forth in the table below. Note that amounts below are in thousands except for price per share.


Period	Total Number of Shares Purchased		Average Price Paid per Share (with commission)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)		Dollar Value of Shares that May Yet Be Repurchased Under the Plans or Programs (1)
May 5, 2024 - June 1, 2024		—	$	—		—	$	—
June 2, 2024 - July 6, 2024		546	$	19.01		546	$	14,619
July 7, 2024 - August 3, 2024		399	$	22.67		399	$	5,578
Total		945				945


(1)	On June 5, 2024, Zumiez Inc. approved the repurchase of up to an aggregate of $25 million of its Common Stock (the “Repurchase Program”). The repurchases will be made from time to time on the open market at prevailing market prices. The Repurchase Program is expected to continue through June 30, 2025, unless the time period is extended or shortened by the Board of Directors.

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

During the three months ended August 3, 2024, none of our directors or “officers” (as defined in Rule 16a-1(f) under the Exchange Act) adopted, modified or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of SEC Regulation S-K.

Item 6. Exhibits


Exhibit No.		Description of Exhibits


31.1		Certification of the Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of the Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1		Certifications of the Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.

101		The following materials from Zumiez Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended August 3, 2024, formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at August 3, 2024 (unaudited) and February 3, 2024; (ii) Unaudited Condensed Consolidated Statements of loss for the three and six months ended August 3, 2024 and July 29, 2023; (iii) Unaudited Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended August 3, 2024 and July 29, 2023; (iv) Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three and six months ended August 3, 2024 and July 29, 2023; (v) Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended August 3, 2024 and July 29, 2023; and (vi) Notes to Condensed Consolidated Financial Statements.
104		The cover page for the Company’s Quarterly Report on Form 10-Q has been formatted in Inline XBRL and contained in Exhibit 101

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	ZUMIEZ INC.

Dated: September 5, 2024	By:	/s/ Christopher C. Work
		Christopher C. Work
		Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULE 13a-14(a), AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Richard M. Brooks, certify that:

I have reviewed this quarterly report on Form 10-Q of Zumiez Inc.;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


/s/ Richard M. Brooks		Dated: September 5, 2024
Richard M. Brooks
Chief Executive Officer and Director
(Principal Executive Officer)

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULE 13a-14(a), AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Christopher C. Work, certify that:

I have reviewed this quarterly report on Form 10-Q of Zumiez Inc.;

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


/s/ Christopher C. Work		Dated: September 5, 2024
Christopher C. Work
Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)

Exhibit 32.1

CERTIFICATIONS PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with the Quarterly Report of Zumiez Inc., a Washington corporation (the “Company”), on Form 10-Q for the three months ended August 3, 2024 as filed with the Securities and Exchange Commission (the “Report”), I, Richard M. Brooks, Principal Executive Officer of the Company and Christopher C. Work, Principal Financial Officer of the Company, certify, pursuant to § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. § 1350), that:

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.


/s/ Richard M. Brooks		/s/ Christopher C. Work
Richard M. Brooks		Christopher C. Work
Chief Executive Officer and Director (Principal Executive Officer)		Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)
September 5, 2024		September 5, 2024

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Aug. 03, 2024	Aug. 31, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Aug. 03, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Trading Symbol	ZUMZ
Entity Registrant Name	ZUMIEZ INC
Entity Central Index Key	0001318008
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--02-01
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		19,141,409
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock
Security Exchange Name	NASDAQ
Entity File Number	000-51300
Entity Tax Identification Number	91-1040022
Entity Incorporation, State or Country Code	WA
Entity Address, Address Line One	4001 204th Street SW
Entity Address, City or Town	Lynnwood
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98036
City Area Code	425
Local Phone Number	551-1500
Document Quarterly Report	true
Document Transition Report	false

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Aug. 03, 2024	Feb. 03, 2024
Current assets
Cash and cash equivalents	$ 65,766	$ 88,875
Marketable securities	61,194	82,704
Receivables	23,129	13,780
Inventories	158,753	128,827
Prepaid expenses and other current assets	17,939	12,401
Total current assets	326,781	326,587
Fixed assets, net	87,573	90,508
Operating lease right-of-use assets	203,744	196,775
Goodwill	15,358	15,374
Intangible assets, net	14,196	14,200
Deferred tax assets, net	9,928	8,623
Other long-term assets	11,947	12,159
Total long-term assets	342,746	337,639
Total assets	669,527	664,226
Current liabilities
Trade accounts payable	75,016	38,885
Accrued payroll and payroll taxes	20,517	18,431
Operating lease liabilities	62,759	60,885
Other current liabilities	22,472	25,886
Total current liabilities	180,764	144,087
Long-term operating lease liabilities	161,663	159,877
Other long-term liabilities	7,296	7,052
Total long-term liabilities	168,959	166,929
Total liabilities	349,723	311,016
Commitments and contingencies (Note 5)
Shareholders’ equity
Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding
Common stock, no par value, 50,000 shares authorized; 19,360 shares issued and outstanding at August 3, 2024 and 19,833 shares issued and outstanding at February 3, 2024	199,763	196,144
Accumulated other comprehensive loss	(18,844)	(19,027)
Retained earnings	138,885	176,093
Total shareholders’ equity	319,804	353,210
Total liabilities and shareholders’ equity	$ 669,527	$ 664,226

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Aug. 03, 2024	Feb. 03, 2024
Statement Of Financial Position [Abstract]
Preferred stock, par value
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	19,360,000	19,833,000
Common stock, shares outstanding	19,360,000	19,833,000

Condensed Consolidated Statements of Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 03, 2024	Jul. 29, 2023	Aug. 03, 2024	Jul. 29, 2023
Income Statement [Abstract]
Net sales	$ 210,179	$ 194,438	$ 387,567	$ 377,325
Cost of goods sold	138,385	132,760	263,874	266,290
Gross profit	71,794	61,678	123,693	111,035
Selling, general and administrative expenses	72,187	72,171	144,240	142,881
Operating loss	(393)	(10,493)	(20,547)	(31,846)
Interest income, net	1,128	775	2,449	1,632
Other (expense) income, net	(179)	423	(946)	(118)
Income (loss) before income taxes	556	(9,295)	(19,044)	(30,332)
Benefit from (provision for) income taxes	1,403	(786)	(1,417)	(3,441)
Net loss	$ (847)	$ (8,509)	$ (17,627)	$ (26,891)
Basic loss per share	$ (0.04)	$ (0.44)	$ (0.91)	$ (1.4)
Diluted loss per share	$ (0.04)	$ (0.44)	$ (0.91)	$ (1.4)
Weighted average shares used in computation of loss per share:
Basic	19,284	19,311	19,375	19,254
Diluted	19,284	19,311	19,375	19,254

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 03, 2024	Jul. 29, 2023	Aug. 03, 2024	Jul. 29, 2023
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (847)	$ (8,509)	$ (17,627)	$ (26,891)
Other comprehensive income (loss), net of tax and reclassification adjustments:
Foreign currency translation	184	385	(712)	771
Net change in fair value of available-for-sale debt securities	997	135	895	465
Other comprehensive income, net	1,181	520	183	1,236
Comprehensive income (loss)	$ 334	$ (7,989)	$ (17,444)	$ (25,655)

Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Accumulated Other Comprehensive Loss [Member]	Retained Earnings [Member]
Beginning Balance at Jan. 28, 2023	$ 407,328	$ 188,418	$ (19,793)	$ 238,703
Beginning Balance, shares at Jan. 28, 2023		19,489
Net Income (Loss)	(26,891)			(26,891)
Other comprehensive income, net	1,236		1,236
Issuance and exercise of stock-based awards	275	$ 275
Issuance and exercise of stock-based awards, shares		320
Stock-based compensation expense	3,476	$ 3,476
Ending Balance at Jul. 29, 2023	385,424	$ 192,169	(18,557)	211,812
Ending Balance, shares at Jul. 29, 2023		19,809
Beginning Balance at Apr. 29, 2023	391,843	$ 190,599	(19,077)	220,321
Beginning Balance, shares at Apr. 29, 2023		19,782
Net Income (Loss)	(8,509)			(8,509)
Other comprehensive income, net	520		520
Issuance and exercise of stock-based awards, shares		27
Stock-based compensation expense	1,570	$ 1,570
Ending Balance at Jul. 29, 2023	385,424	$ 192,169	(18,557)	211,812
Ending Balance, shares at Jul. 29, 2023		19,809
Beginning Balance at Feb. 03, 2024	$ 353,210	$ 196,144	(19,027)	176,093
Beginning Balance, shares at Feb. 03, 2024	19,833	19,833
Net Income (Loss)	$ (17,627)			(17,627)
Other comprehensive income, net	183		183
Issuance and exercise of stock-based awards	228	$ 228
Issuance and exercise of stock-based awards, shares		472
Stock-based compensation expense	3,391	$ 3,391
Repurchase of common stock	$ (19,581)			(19,581)
Repurchase of common stock, shares	(945)	945
Ending Balance at Aug. 03, 2024	$ 319,804	$ 199,763	(18,844)	138,885
Ending Balance, shares at Aug. 03, 2024	19,360	19,360
Beginning Balance at May. 04, 2024	$ 337,335	$ 198,047	(20,025)	159,313
Beginning Balance, shares at May. 04, 2024		20,318
Net Income (Loss)	(847)			(847)
Other comprehensive income, net	1,181		1,181
Issuance and exercise of stock-based awards	(2)	$ (2)
Issuance and exercise of stock-based awards, shares		(13)
Stock-based compensation expense	1,718	$ 1,718
Repurchase of common stock	(19,581)			(19,581)
Repurchase of common stock, shares		945
Ending Balance at Aug. 03, 2024	$ 319,804	$ 199,763	$ (18,844)	$ 138,885
Ending Balance, shares at Aug. 03, 2024	19,360	19,360

Condensed Consolidated Statements of Cash Flows $ in Thousands	6 Months Ended
	Aug. 03, 2024 USD ($)	Jul. 29, 2023 USD ($)
Cash flows from operating activities:
Net loss	$ (17,627)	$ (26,891)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and accretion	11,052	10,881
Noncash lease expense	32,169	34,380
Deferred taxes	(1,688)	(4,060)
Stock-based compensation expense	3,391	3,476
Impairment of long-lived assets	298	338
Other	949	84
Changes in operating assets and liabilities:
Receivables	(7,067)	(1,113)
Inventories	(30,665)	(21,721)
Prepaid expenses and other assets	(937)	(3,807)
Trade accounts payable	34,650	30,150
Accrued payroll and payroll taxes	2,102	(1,676)
Income taxes payable	(1,346)	(1,044)
Operating lease liabilities	(36,817)	(38,783)
Other liabilities	(3,886)	(4,480)
Net cash used in operating activities	(15,422)	(24,266)
Cash flows from investing activities:
Additions to fixed assets	(6,266)	(11,879)
Purchases of marketable securities	(1,967)	(1,850)
Sales and maturities of marketable securities and other investments	24,145	12,284
Net cash provided by (used in) investing activities	15,912	(1,445)
Cash flows from financing activities:
Proceeds from revolving credit facilities	3,220	25,682
Payments on revolving credit facilities	(3,220)	(25,682)
Proceeds from issuance and exercise of stock-based awards	357	460
Payments for tax withholdings on equity awards	(130)	(185)
Repurchase of common stock, including taxes	(19,581)
Net cash (used in) provided by financing activities	(19,354)	275
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(213)	179
Net decrease in cash, cash equivalents, and restricted cash	(19,077)	(25,257)
Cash, cash equivalents, and restricted cash, beginning of period	94,284	88,453
Cash, cash equivalents, and restricted cash, end of period	75,207	63,196
Supplemental disclosure on cash flow information:
Cash paid during the period for income taxes	1,805	1,520
Accrual for purchases of fixed assets	3,326	$ 1,784
Accrual for repurchase of common stock	$ 479

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Aug. 03, 2024	Jul. 29, 2023	Aug. 03, 2024	Jul. 29, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (847)	$ (8,509)	$ (17,627)	$ (26,891)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Aug. 03, 2024
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
Rule 10b5-1 Arrangement Modified	false
Non-Rule 10b5-1 Arrangement Modified	false

Nature of Business and Basis of Presentation

6 Months Ended

Aug. 03, 2024

Accounting Policies [Abstract]

Nature of Business and Basis of Presentation

1. Nature of Business and Basis of Presentation


	August 3, 2024		February 3, 2024
Cash and cash equivalents	$	65,766	$	88,875
Restricted cash included in other current assets and other long-term assets		9,441		5,409
Total cash, cash equivalents, and restricted cash as shown in the statement of cash flows	$	75,207	$	94,284

Revenue

6 Months Ended

Aug. 03, 2024

Revenue From Contract With Customer [Abstract]

Revenue

2. Revenue

The following table disaggregates net sales by geographic region (in thousands):


	Three Months Ended				Six Months Ended
	August 3, 2024		July 29, 2023		August 3, 2024		July 29, 2023
United States	$	166,186	$	149,991	$	300,057	$	285,541
Europe		28,320		29,488		57,890		62,999
Canada		10,148		9,682		18,974		18,116
Australia		5,525		5,277		10,646		10,669
Net sales	$	210,179	$	194,438	$	387,567	$	377,325

Cash, Cash Equivalents and Marketable Securities

6 Months Ended

Aug. 03, 2024

Cash And Cash Equivalents [Abstract]

Cash, Cash Equivalents and Marketable Securities

3. Cash, Cash Equivalents and Marketable Securities

The following tables summarize the estimated fair value of our cash, cash equivalents and marketable securities and the gross unrealized holding gains and losses (in thousands):


	August 3, 2024
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Cash and cash equivalents:
Cash	$	31,499	$	—	$	—		$	31,499
Money market funds		31,375		—		—			31,375
Corporate debt securities		2,892		—		—			2,892
Total cash and cash equivalents		65,766		—		—			65,766
Marketable securities:
U.S. treasury and government agency securities		16,199		—		(2,282	)		13,917
Corporate debt securities		24,241		—		(359	)		23,882
State and local government securities		1,400		—		(13	)		1,387
Certificate of deposits		18,568		—		—			18,568
Variable-rate demand notes		3,440		—		—			3,440
Total marketable securities	$	63,848	$	—	$	(2,654	)	$	61,194


	February 3, 2024
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Cash and cash equivalents:
Cash	$	38,188	$	—	$	—		$	38,188
Money market funds		11,322		—		—			11,322
Corporate debt securities		39,374		—		(9	)		39,365
Total cash and cash equivalents		88,884		—		(9	)		88,875
Marketable securities:
U.S. treasury and government agency securities		17,610		—		(2,834	)		14,776
Corporate debt securities		41,218		1		(948	)		40,271
State and local government securities		6,525		—		(105	)		6,420
Certificates of deposit		16,607		—		—			16,607
Variable-rate demand notes		4,630		—		—			4,630
Total marketable securities	$	86,590	$	1	$	(3,887	)	$	82,704

All of our marketable securities have an effective maturity date or weighted average life of five years or less at the time of purchase and may be liquidated, at our discretion, prior to maturity.


	August 3, 2024
	Less Than 12 Months				12 Months or Greater					Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Marketable securities:
U.S. treasury and government agency securities		—		—		13,917		(2,282	)		13,917		(2,282	)
Corporate debt securities		—		—		22,881		(359	)		22,881		(359	)
State and local government securities		—		—		1,387		(13	)		1,387		(13	)
Total marketable securities	$	—	$	—	$	38,185	$	(2,654	)	$	38,185	$	(2,654	)


	February 3, 2024
	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Cash and cash equivalents:
Corporate debt securities	$	29,093	$	(9	)	$	—	$	—		$	29,093	$	(9	)
Total cash and cash equivalents		29,093		(9	)		—		—			29,093		(9	)
Marketable securities:
U.S. treasury and government agency securities		—		—			14,777		(2,834	)		14,777		(2,834	)
Corporate debt securities		—		—			37,878		(948	)		37,878		(948	)
State and local government securities		—		—			6,420		(105	)		6,420		(105	)
Total marketable securities	$	—	$	—		$	59,075	$	(3,887	)	$	59,075	$	(3,887	)

Leases

6 Months Ended

Aug. 03, 2024

Leases [Abstract]

Leases

4. Leases

The following table presents components of lease expense (in thousands):


	Three Months Ended				Six Months Ended
	August 3, 2024		July 29, 2023		August 3, 2024		July 29, 2023
Operating lease expense	$	20,174	$	19,864	$	36,812	$	37,630
Variable lease expense		1,256		728		4,633		3,780
Total lease expense (1)	$	21,430	$	20,592	$	41,445	$	41,410

(1)

Supplemental cash flow information related to leases is as follows (in thousands):


	Six Months Ended
	August 3, 2024			July 29, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(36,817	)	$	(38,783	)
Right-of-use assets obtained in exchange for new operating lease liabilities		46,978			32,900

Weighted-average remaining lease term and discount rate were as follows:


	August 3, 2024			July 29, 2023
Weighted-average remaining lease term		4.8			4.9
Weighted-average discount rate		4.3	%		2.9	%

At August 3, 2024, the maturities of our operating leases liabilities are as follows (in thousands):


Fiscal 2024	$	35,556
Fiscal 2025		67,139
Fiscal 2026		45,876
Fiscal 2027		35,437
Fiscal 2028		21,466
Fiscal 2029		12,932
Thereafter		30,220
Total minimum lease payments		248,626
Less: interest		(24,204	)
Present value of lease obligations		224,422
Less: current portion		(62,759	)
Long-term lease obligations (1)	$	161,663

(1)

Amounts in the table do not include contingent rent, common area maintenance charges and other non-lease components.

Commitments and Contingencies

6 Months Ended

Aug. 03, 2024

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

5. Commitments and Contingencies

Revolving Credit Facilities and Debt

6 Months Ended

Aug. 03, 2024

Debt Disclosure [Abstract]

Revolving Credit Facilities and Debt

6. Revolving Credit Facilities and Debt

of the Termination Date, there were $3.4 million in issued, but undrawn, standby letters of credit that have been transitioned to restricted deposits with the Bank.

Fair Value Measurements

6 Months Ended

Aug. 03, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

7. Fair Value Measurements

•

Level 1— Quoted prices in active markets for identical assets or liabilities;

•

Level 2— Quoted prices for similar assets or liabilities in active markets or inputs that are observable; and

•

Level 3— Inputs that are unobservable.

The following tables summarize assets measured at fair value on a recurring basis (in thousands):


	August 3, 2024
	Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	31,375	$	—	$	—
Corporate debt securities		—		2,892		—
Marketable securities:
U.S. treasury and government agency securities		—		13,917		—
Corporate debt securities		—		23,882		—
Certificates of deposit		—		18,568
State and local government securities		—		1,387		—
Variable-rate demand notes		—		3,440		—
Long-term assets:
Money market funds		9,441		—		—
Total	$	40,816	$	64,086	$	—


	February 3, 2024
	Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	11,322	$	—	$	—
Corporate debt securities		—		39,365		—
Marketable securities:
U.S. treasury and government agency securities		—		14,776		—
Corporate debt securities		—		40,271		—
Certificates of deposit		—		16,607		—
State and local government securities		—		6,420		—
Variable-rate demand notes		—		4,630		—
Other long-term assets:		—		—		—
Money market funds		5,409		—		—
Total	$	16,731	$	122,069	$	—

Stockholders' Equity

6 Months Ended

Aug. 03, 2024

Equity [Abstract]

Stockholders' Equity

8. Stockholders’ Equity

The following table summarizes common stock repurchase activity during the six months ended August 3, 2024 (in thousands, except per share amounts):



Number of shares repurchased		945
Average price per share of repurchased shares (with commission)	$	20.55
Total cost of shares repurchased	$	19,421


	Foreign currency translation adjustments (3)			Net unrealized losses on available-for- sale debt securities			Accumulated other comprehensive loss
Three months ended August 3, 2024:
Balance at May 4, 2024	$	(17,042	)	$	(2,983	)	$	(20,025	)
Other comprehensive income, net (1)		184			997			1,181
Balance at August 3, 2024	$	(16,858	)	$	(1,986	)	$	(18,844	)
Three months ended July 29, 2023:
Balance at April 29, 2023	$	(14,715	)	$	(4,362	)	$	(19,077	)
Other comprehensive income, net (1)		385			135			520
Balance at July 29, 2023	$	(14,330	)	$	(4,227	)	$	(18,557	)


	Foreign currency translation adjustments (3)			Net unrealized losses on available-for- sale investments			Accumulated other comprehensive loss
Six months ended August 3, 2024:
Balance at February 3, 2024	$	(16,146	)	$	(2,881	)	$	(19,027	)
Other comprehensive income (loss), net (2)		(712	)		895			183
Balance at August 3, 2024	$	(16,858	)	$	(1,986	)	$	(18,844	)
Six months ended July 29, 2023:
Balance at January 28, 2023	$	(15,101	)	$	(4,692	)	$	(19,793	)
Other comprehensive income, net (2)		771			465			1,236
Balance at July 29, 2023	$	(14,330	)	$	(4,227	)	$	(18,557	)

(1)

(2)

There were no net unrealized losses, net of taxes, reclassified from accumulated other comprehensive loss for the six months ended August 3, 2024 and July 29, 2023, respectively.

(3)

Foreign currency translation adjustments are not adjusted for income taxes as they relate to permanent investments in our international subsidiaries.

Equity Awards

6 Months Ended

Aug. 03, 2024

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Equity Awards

9. Equity Awards

Total stock-based compensation expense is recognized on our condensed consolidated statements of loss as follows (in thousands):


	Three Months Ended				Six Months Ended
	August 3, 2024		July 29, 2023		August 3, 2024		July 29, 2023
Cost of goods sold	$	370	$	382	$	740	$	774
Selling, general and administrative expenses		1,348		1,188		2,651		2,702
Total stock-based compensation expense	$	1,718	$	1,570	$	3,391	$	3,476


	Restricted Stock Awards/Units			Grant Date Weighted- Average Fair Value		Intrinsic Value
Outstanding at February 3, 2024		495		$	26.14
Granted		495		$	13.74
Vested		(212	)	$	25.67
Forfeited		(28	)	$	20.76
Outstanding at August 3, 2024		750		$	18.29	$	18,085

Loss per Share, Basic and Diluted

6 Months Ended

Aug. 03, 2024

Earnings Per Share [Abstract]

Loss per Share, Basic and Diluted

10. Loss per Share, Basic and Diluted

The following table sets forth the computation of basic and diluted loss per share (in thousands, except per share amounts):


	Three Months Ended						Six Months Ended
	August 3, 2024			July 29, 2023			August 3, 2024			July 29, 2023
Net loss	$	(847	)	$	(8,509	)	$	(17,627	)	$	(26,891	)
Weighted average common shares for basic loss per share:		19,284			19,311			19,375			19,254
Dilutive effect of stock options and restricted stock		—			—			—			—
Weighted average common shares for diluted loss per share:		19,284			19,311			19,375			19,254
Basic loss per share	$	(0.04	)	$	(0.44	)	$	(0.91	)	$	(1.40	)
Diluted loss per share	$	(0.04	)	$	(0.44	)	$	(0.91	)	$	(1.40	)

Nature of Business and Basis of Presentation (Policies)

3 Months Ended

6 Months Ended

May 04, 2024

Aug. 03, 2024

Accounting Policies [Abstract]

Fiscal Year

Basis of Presentation

Use of Estimates

Restricted Cash


	August 3, 2024		February 3, 2024
Cash and cash equivalents	$	65,766	$	88,875
Restricted cash included in other current assets and other long-term assets		9,441		5,409
Total cash, cash equivalents, and restricted cash as shown in the statement of cash flows	$	75,207	$	94,284

Recent Accounting Standards

Nature of Business and Basis of Presentation (Tables)

6 Months Ended

Aug. 03, 2024

Accounting Policies [Abstract]

Summary of Reconciliation of Cash, Cash Equivalents, and Restricted Cash

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


	August 3, 2024		February 3, 2024
Cash and cash equivalents	$	65,766	$	88,875
Restricted cash included in other current assets and other long-term assets		9,441		5,409
Total cash, cash equivalents, and restricted cash as shown in the statement of cash flows	$	75,207	$	94,284

Revenue (Tables)

6 Months Ended

Aug. 03, 2024

Revenue From Contract With Customer [Abstract]

Disaggregation of Net Sales by Geographic Region

The following table disaggregates net sales by geographic region (in thousands):


	Three Months Ended				Six Months Ended
	August 3, 2024		July 29, 2023		August 3, 2024		July 29, 2023
United States	$	166,186	$	149,991	$	300,057	$	285,541
Europe		28,320		29,488		57,890		62,999
Canada		10,148		9,682		18,974		18,116
Australia		5,525		5,277		10,646		10,669
Net sales	$	210,179	$	194,438	$	387,567	$	377,325

Cash, Cash Equivalents and Marketable Securities (Tables)

6 Months Ended

Aug. 03, 2024

Cash And Cash Equivalents [Abstract]

Summary of Estimated Fair Value of Cash, Cash Equivalents and Marketable Securities

The following tables summarize the estimated fair value of our cash, cash equivalents and marketable securities and the gross unrealized holding gains and losses (in thousands):


	August 3, 2024
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Cash and cash equivalents:
Cash	$	31,499	$	—	$	—		$	31,499
Money market funds		31,375		—		—			31,375
Corporate debt securities		2,892		—		—			2,892
Total cash and cash equivalents		65,766		—		—			65,766
Marketable securities:
U.S. treasury and government agency securities		16,199		—		(2,282	)		13,917
Corporate debt securities		24,241		—		(359	)		23,882
State and local government securities		1,400		—		(13	)		1,387
Certificate of deposits		18,568		—		—			18,568
Variable-rate demand notes		3,440		—		—			3,440
Total marketable securities	$	63,848	$	—	$	(2,654	)	$	61,194


	February 3, 2024
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Cash and cash equivalents:
Cash	$	38,188	$	—	$	—		$	38,188
Money market funds		11,322		—		—			11,322
Corporate debt securities		39,374		—		(9	)		39,365
Total cash and cash equivalents		88,884		—		(9	)		88,875
Marketable securities:
U.S. treasury and government agency securities		17,610		—		(2,834	)		14,776
Corporate debt securities		41,218		1		(948	)		40,271
State and local government securities		6,525		—		(105	)		6,420
Certificates of deposit		16,607		—		—			16,607
Variable-rate demand notes		4,630		—		—			4,630
Total marketable securities	$	86,590	$	1	$	(3,887	)	$	82,704

Summary of Gross Unrealized Holding Losses and Fair Value for Investments in an Unrealized Loss Position


	August 3, 2024
	Less Than 12 Months				12 Months or Greater					Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Marketable securities:
U.S. treasury and government agency securities		—		—		13,917		(2,282	)		13,917		(2,282	)
Corporate debt securities		—		—		22,881		(359	)		22,881		(359	)
State and local government securities		—		—		1,387		(13	)		1,387		(13	)
Total marketable securities	$	—	$	—	$	38,185	$	(2,654	)	$	38,185	$	(2,654	)


	February 3, 2024
	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Cash and cash equivalents:
Corporate debt securities	$	29,093	$	(9	)	$	—	$	—		$	29,093	$	(9	)
Total cash and cash equivalents		29,093		(9	)		—		—			29,093		(9	)
Marketable securities:
U.S. treasury and government agency securities		—		—			14,777		(2,834	)		14,777		(2,834	)
Corporate debt securities		—		—			37,878		(948	)		37,878		(948	)
State and local government securities		—		—			6,420		(105	)		6,420		(105	)
Total marketable securities	$	—	$	—		$	59,075	$	(3,887	)	$	59,075	$	(3,887	)

Leases (Tables)

6 Months Ended

Aug. 03, 2024

Leases [Abstract]

Components of Lease Expense

The following table presents components of lease expense (in thousands):


	Three Months Ended				Six Months Ended
	August 3, 2024		July 29, 2023		August 3, 2024		July 29, 2023
Operating lease expense	$	20,174	$	19,864	$	36,812	$	37,630
Variable lease expense		1,256		728		4,633		3,780
Total lease expense (1)	$	21,430	$	20,592	$	41,445	$	41,410

(1)

Schedule of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases is as follows (in thousands):


	Six Months Ended
	August 3, 2024			July 29, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(36,817	)	$	(38,783	)
Right-of-use assets obtained in exchange for new operating lease liabilities		46,978			32,900

Schedule of Weighted-Average Remaining Lease Term and Discount Rate

Weighted-average remaining lease term and discount rate were as follows:


	August 3, 2024			July 29, 2023
Weighted-average remaining lease term		4.8			4.9
Weighted-average discount rate		4.3	%		2.9	%

Schedule of Maturities of Operating Leases Liabilities

At August 3, 2024, the maturities of our operating leases liabilities are as follows (in thousands):


Fiscal 2024	$	35,556
Fiscal 2025		67,139
Fiscal 2026		45,876
Fiscal 2027		35,437
Fiscal 2028		21,466
Fiscal 2029		12,932
Thereafter		30,220
Total minimum lease payments		248,626
Less: interest		(24,204	)
Present value of lease obligations		224,422
Less: current portion		(62,759	)
Long-term lease obligations (1)	$	161,663

(1)

Amounts in the table do not include contingent rent, common area maintenance charges and other non-lease components.

Fair Value Measurements (Tables)

6 Months Ended

Aug. 03, 2024

Fair Value Disclosures [Abstract]

Assets Measured at Fair Value on a Recurring Basis

The following tables summarize assets measured at fair value on a recurring basis (in thousands):


	August 3, 2024
	Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	31,375	$	—	$	—
Corporate debt securities		—		2,892		—
Marketable securities:
U.S. treasury and government agency securities		—		13,917		—
Corporate debt securities		—		23,882		—
Certificates of deposit		—		18,568
State and local government securities		—		1,387		—
Variable-rate demand notes		—		3,440		—
Long-term assets:
Money market funds		9,441		—		—
Total	$	40,816	$	64,086	$	—


	February 3, 2024
	Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	11,322	$	—	$	—
Corporate debt securities		—		39,365		—
Marketable securities:
U.S. treasury and government agency securities		—		14,776		—
Corporate debt securities		—		40,271		—
Certificates of deposit		—		16,607		—
State and local government securities		—		6,420		—
Variable-rate demand notes		—		4,630		—
Other long-term assets:		—		—		—
Money market funds		5,409		—		—
Total	$	16,731	$	122,069	$	—

Stockholders' Equity (Tables)

6 Months Ended

Aug. 03, 2024

Equity [Abstract]

Summary of Common Stock Repurchase Activity

The following table summarizes common stock repurchase activity during the six months ended August 3, 2024 (in thousands, except per share amounts):



Number of shares repurchased		945
Average price per share of repurchased shares (with commission)	$	20.55
Total cost of shares repurchased	$	19,421

Schedule of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss and the adjustments to other comprehensive income (loss) for amounts reclassified from accumulated other comprehensive loss into net loss are as follows (in thousands):


	Foreign currency translation adjustments (3)			Net unrealized losses on available-for- sale debt securities			Accumulated other comprehensive loss
Three months ended August 3, 2024:
Balance at May 4, 2024	$	(17,042	)	$	(2,983	)	$	(20,025	)
Other comprehensive income, net (1)		184			997			1,181
Balance at August 3, 2024	$	(16,858	)	$	(1,986	)	$	(18,844	)
Three months ended July 29, 2023:
Balance at April 29, 2023	$	(14,715	)	$	(4,362	)	$	(19,077	)
Other comprehensive income, net (1)		385			135			520
Balance at July 29, 2023	$	(14,330	)	$	(4,227	)	$	(18,557	)


	Foreign currency translation adjustments (3)			Net unrealized losses on available-for- sale investments			Accumulated other comprehensive loss
Six months ended August 3, 2024:
Balance at February 3, 2024	$	(16,146	)	$	(2,881	)	$	(19,027	)
Other comprehensive income (loss), net (2)		(712	)		895			183
Balance at August 3, 2024	$	(16,858	)	$	(1,986	)	$	(18,844	)
Six months ended July 29, 2023:
Balance at January 28, 2023	$	(15,101	)	$	(4,692	)	$	(19,793	)
Other comprehensive income, net (2)		771			465			1,236
Balance at July 29, 2023	$	(14,330	)	$	(4,227	)	$	(18,557	)

(1)

(2)

There were no net unrealized losses, net of taxes, reclassified from accumulated other comprehensive loss for the six months ended August 3, 2024 and July 29, 2023, respectively.

(3)

Foreign currency translation adjustments are not adjusted for income taxes as they relate to permanent investments in our international subsidiaries.

Equity Awards (Tables)

6 Months Ended

Aug. 03, 2024

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Total Stock-Based Compensation Expense

Total stock-based compensation expense is recognized on our condensed consolidated statements of loss as follows (in thousands):


	Three Months Ended				Six Months Ended
	August 3, 2024		July 29, 2023		August 3, 2024		July 29, 2023
Cost of goods sold	$	370	$	382	$	740	$	774
Selling, general and administrative expenses		1,348		1,188		2,651		2,702
Total stock-based compensation expense	$	1,718	$	1,570	$	3,391	$	3,476

Summary of Restricted Stock Awards and Restricted Stock Units


	Restricted Stock Awards/Units			Grant Date Weighted- Average Fair Value		Intrinsic Value
Outstanding at February 3, 2024		495		$	26.14
Granted		495		$	13.74
Vested		(212	)	$	25.67
Forfeited		(28	)	$	20.76
Outstanding at August 3, 2024		750		$	18.29	$	18,085

Loss per Share, Basic and Diluted (Tables)

6 Months Ended

Aug. 03, 2024

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings per Share

The following table sets forth the computation of basic and diluted loss per share (in thousands, except per share amounts):


	Three Months Ended						Six Months Ended
	August 3, 2024			July 29, 2023			August 3, 2024			July 29, 2023
Net loss	$	(847	)	$	(8,509	)	$	(17,627	)	$	(26,891	)
Weighted average common shares for basic loss per share:		19,284			19,311			19,375			19,254
Dilutive effect of stock options and restricted stock		—			—			—			—
Weighted average common shares for diluted loss per share:		19,284			19,311			19,375			19,254
Basic loss per share	$	(0.04	)	$	(0.44	)	$	(0.91	)	$	(1.40	)
Diluted loss per share	$	(0.04	)	$	(0.44	)	$	(0.91	)	$	(1.40	)

Nature of Business and Basis of Presentation - Additional Information (Detail) $ in Thousands	Dec. 20, 2021	Aug. 03, 2024 USD ($) Store	Feb. 03, 2024 USD ($)	Jul. 29, 2023 USD ($)
Nature Of Business And Basis Of Presentation [Line Items]
Operated stores		750
Global minimum corporate tax rate	15.00%
Restricted cash, Current \| $		$ 4,000
Restricted cash, Noncurrent \| $		$ 5,400		$ 5,400
Restricted Cash and Cash Equivalents, Noncurrent, Statement of Financial Position [Extensible Enumeration]		Other Assets Noncurrent		Other Assets Noncurrent
Restricted cash \| $		$ 9,441	$ 5,409
United States [Member]
Nature Of Business And Basis Of Presentation [Line Items]
Operated stores		592
Canada [Member]
Nature Of Business And Basis Of Presentation [Line Items]
Operated stores		46
Europe [Member]
Nature Of Business And Basis Of Presentation [Line Items]
Operated stores		86
Australia [Member]
Nature Of Business And Basis Of Presentation [Line Items]
Operated stores		26

Nature of Business and Basis of Presentation - Summary of Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Detail) - USD ($) $ in Thousands	Aug. 03, 2024	Feb. 03, 2024
Restricted Cash And Cash Equivalents [Abstract]
Cash and cash equivalents	$ 65,766	$ 88,875
Restricted cash included in other current assets and other long-term assets	9,441	5,409
Total cash, cash equivalents, and restricted cash as shown in the statement of cash flows	$ 75,207	$ 94,284

Revenue - Disaggregation of Net Sales by Geographic Region (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 03, 2024	Jul. 29, 2023	Aug. 03, 2024	Jul. 29, 2023
Disaggregation Of Revenue [Line Items]
Net sales	$ 210,179	$ 194,438	$ 387,567	$ 377,325
United States [Member]
Disaggregation Of Revenue [Line Items]
Net sales	166,186	149,991	300,057	285,541
Europe [Member]
Disaggregation Of Revenue [Line Items]
Net sales	28,320	29,488	57,890	62,999
Canada [Member]
Disaggregation Of Revenue [Line Items]
Net sales	10,148	9,682	18,974	18,116
Australia [Member]
Disaggregation Of Revenue [Line Items]
Net sales	$ 5,525	$ 5,277	$ 10,646	$ 10,669

Revenue - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Aug. 03, 2024	Aug. 03, 2024	Feb. 03, 2024
Disaggregation Of Revenue [Line Items]
Increase in revenue due to changes in foreign exchange rates	$ 0.6	$ 0.7
Gift Cards [Member]
Disaggregation Of Revenue [Line Items]
Current liability for gift cards	2.7	2.7	$ 4.3
STASH Loyalty Program [Member]
Disaggregation Of Revenue [Line Items]
Current liability for gift cards	1.1	1.1	$ 1.0
Canada [Member]
Disaggregation Of Revenue [Line Items]
Increase in revenue due to changes in foreign exchange rates	0.3	0.3
Europe [Member]
Disaggregation Of Revenue [Line Items]
Increase in revenue due to changes in foreign exchange rates	$ 0.3	0.2
Australia [Member]
Disaggregation Of Revenue [Line Items]
Increase in revenue due to changes in foreign exchange rates		$ 0.2

Cash, Cash Equivalents and Marketable Securities - Summary of Estimated Fair Value of Cash, Cash Equivalents and Marketable Securities (Detail) - USD ($) $ in Thousands	Aug. 03, 2024	Feb. 03, 2024
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Cash and cash equivalents	$ 65,766	$ 88,884
Gross Unrealized Holding Losses, Cash and cash equivalents	0	(9)
Estimated Fair Value, Cash and cash equivalents	65,766	88,875
Amortized Cost, Marketable securities	63,848	86,590
Gross Unrealized Holding Gains, Marketable securities		1
Gross Unrealized Holding Losses, Marketable securities	(2,654)	(3,887)
Estimated Fair Value, Marketable securities	61,194	82,704
Cash [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Cash and cash equivalents	31,499	38,188
Estimated Fair Value, Cash and cash equivalents	31,499	38,188
Money Market Funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Cash and cash equivalents	31,375	11,322
Estimated Fair Value, Cash and cash equivalents	31,375	11,322
U.S. Treasury and Government Agency Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Marketable securities	16,199	17,610
Gross Unrealized Holding Losses, Marketable securities	(2,282)	(2,834)
Estimated Fair Value, Marketable securities	13,917	14,776
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Cash and cash equivalents	24,241	39,374
Gross Unrealized Holding Losses, Cash and cash equivalents	(359)	(9)
Estimated Fair Value, Cash and cash equivalents	23,882	39,365
Amortized Cost, Marketable securities	2,892	41,218
Gross Unrealized Holding Gains, Marketable securities		1
Gross Unrealized Holding Losses, Marketable securities	0	(948)
Estimated Fair Value, Marketable securities	2,892	40,271
State and Local Government Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Marketable securities	1,400	6,525
Gross Unrealized Holding Losses, Marketable securities	(13)	(105)
Estimated Fair Value, Marketable securities	1,387	6,420
Certificates of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Marketable securities	18,568	16,607
Estimated Fair Value, Marketable securities	18,568	16,607
Variable-rate Demand Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Marketable securities	3,440	4,630
Estimated Fair Value, Marketable securities	$ 3,440	$ 4,630

Cash, Cash Equivalents and Marketable Securities - Additional Information (Detail)	6 Months Ended
	Aug. 03, 2024
Cash And Cash Equivalents [Abstract]
Effective maturity period	5 years

Cash, Cash Equivalents and Marketable Securities - Summary of Gross Unrealized Holding Losses and Fair Value for Investments in an Unrealized Loss Position (Detail) - USD ($) $ in Thousands	Aug. 03, 2024	Feb. 03, 2024
Schedule of Available-for-sale Securities [Line Items]
Fair Value, 12 Months or Greater	$ 38,185	$ 59,075
Fair Value, Total	38,185	59,075
Unrealized Losses, 12 Months or Greater	(2,654)	(3,887)
Unrealized Losses, Total	(2,654)	(3,887)
Cash and Cash Equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less Than 12 Months		29,093
Fair Value, Total		29,093
Unrealized Losses, Less Than 12 Months		(9)
Unrealized Losses, Total		(9)
U.S. Treasury and Government Agency Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, 12 Months or Greater	13,917	14,777
Fair Value, Total	13,917	14,777
Unrealized Losses, 12 Months or Greater	(2,282)	(2,834)
Unrealized Losses, Total	(2,282)	(2,834)
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, 12 Months or Greater	22,881	37,878
Fair Value, Total	22,881	37,878
Unrealized Losses, 12 Months or Greater	(359)	(948)
Unrealized Losses, Total	(359)	(948)
Corporate Debt Securities [Member] \| Cash and Cash Equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less Than 12 Months		29,093
Fair Value, Total		29,093
Unrealized Losses, Less Than 12 Months		(9)
Unrealized Losses, Total		(9)
State and Local Government Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, 12 Months or Greater	1,387	6,420
Fair Value, Total	1,387	6,420
Unrealized Losses, 12 Months or Greater	(13)	(105)
Unrealized Losses, Total	$ (13)	$ (105)

Leases - Additional Information (Detail) $ in Millions	6 Months Ended
Leases - Additional Information (Detail) $ in Millions	Aug. 03, 2024 USD ($)
Lessee Lease Description [Line Items]
Operating leases contractually executed but not yet commenced	$ 1.1
Maximum [Member]
Lessee Lease Description [Line Items]
Operating lease, lease terms	11 years
Minimum [Member]
Lessee Lease Description [Line Items]
Operating lease, lease terms	1 month

Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 03, 2024	Jul. 29, 2023	Aug. 03, 2024	Jul. 29, 2023
Lease Cost [Abstract]
Operating lease expense	$ 20,174	$ 19,864	$ 36,812	$ 37,630
Variable lease expense	1,256	728	4,633	3,780
Total lease expense	$ 21,430	$ 20,592	$ 41,445	$ 41,410

Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands	6 Months Ended
	Aug. 03, 2024	Jul. 29, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ (36,817)	$ (38,783)
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 46,978	$ 32,900

Leases - Schedule of Weighted-Average Remaining Lease Term and Discount Rate (Detail)	Aug. 03, 2024	Jul. 29, 2023
Leases [Abstract]
Weighted-average remaining lease term	4 years 9 months 18 days	4 years 10 months 24 days
Weighted-average discount rate	4.30%	2.90%

Leases - Schedule of Maturities of Operating Leases Liabilities (Detail) - USD ($) $ in Thousands	Aug. 03, 2024	Feb. 03, 2024
Operating Lease Liabilities Payments Due [Abstract]
Fiscal 2024	$ 35,556
Fiscal 2025	67,139
Fiscal 2026	45,876
Fiscal 2027	35,437
Fiscal 2028	21,466
Fiscal 2029	12,932
Thereafter	30,220
Total minimum lease payments	248,626
Less: interest	(24,204)
Present value of lease obligations	224,422
Less: current portion	(62,759)	$ (60,885)
Long-term lease obligations	$ 161,663	$ 159,877

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	Aug. 03, 2024	Feb. 03, 2024
Loss Contingencies [Line Items]
Outstanding purchase orders	$ 231.4
Self-insurance reserve	$ 1.4	$ 1.7

Revolving Credit Facility and Debt - Additional Information (Detail) - USD ($)		6 Months Ended
	May 03, 2024	Aug. 03, 2024	Feb. 03, 2024
Line of Credit Facility [Line Items]
Letters of credit outstanding			$ 0
Maximum [Member]
Line of Credit Facility [Line Items]
Letters of credit outstanding		$ 500,000
Commercial Letters of Credit [Member]
Line of Credit Facility [Line Items]
Letters of credit outstanding		0
Senior Secured Credit Facility Through December One Two Thousand Twenty Four [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity under revolving credit facility		$ 25,000,000
Senior Secured Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit agreement termination date	May 03, 2024
Percentage of unused commitment fee		0.50%
Outstanding borrowings under revolving lines of credit		$ 0
Standby letters of credit issued amount	$ 3,400,000	2,700,000	$ 3,500,000
Termination penalties incurred.		$ 0

Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Aug. 03, 2024	Feb. 03, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 61,194	$ 82,704
Other long-term assets	11,947	12,159
Long-term assets	342,746	337,639
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	40,816	16,731
Level 1 [Member] \| Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	31,375	11,322
Other long-term assets		5,409
Long-term assets	9,441
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	64,086	122,069
Level 2 [Member] \| U.S. Treasury and Government Agency Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	13,917	14,776
Level 2 [Member] \| Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	23,882	39,365
Marketable securities	2,892	40,271
Level 2 [Member] \| Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	18,568	16,607
Level 2 [Member] \| State and Local Government Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	1,387	6,420
Level 2 [Member] \| Variable-rate Demand Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 3,440	$ 4,630

Fair Value Measurements - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 03, 2024	Jul. 29, 2023	Aug. 03, 2024	Jul. 29, 2023
Fair Value Disclosures [Abstract]
Impairment losses related to operating lease right-of-use assets	$ 100,000	$ 0	$ 100,000	$ 100,000
Impairment losses related to fixed assets	$ 100,000	$ 0	$ 200,000	$ 300,000

Stockholders' Equity - Additional Information (Details) - USD ($) $ in Millions	Aug. 03, 2024	Jun. 05, 2024
Equity, Class of Treasury Stock [Line Items]
Share Repurchase Program, Remaining Authorized, Amount	$ 5.6
Maximum [Member]
Equity, Class of Treasury Stock [Line Items]
Shares approved to purchase under stock repurchase program, value		$ 25.0

Stockholders' Equity - Summary of Common Stock Repurchase Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Aug. 03, 2024 USD ($) $ / shares shares
Equity [Abstract]
Number of shares repurchased \| shares	945
Average price per share of repurchased shares (with commission) \| $ / shares	$ 20.55
Total cost of shares repurchased \| $	$ 19,421

Stockholders' Equity - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 03, 2024	Jul. 29, 2023	Aug. 03, 2024	Jul. 29, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ (20,025)	$ (19,077)	$ (19,027)	$ (19,793)
Other comprehensive (loss) income, net	1,181	520	183	1,236
Ending Balance	(18,844)	(18,557)	(18,844)	(18,557)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(17,042)	(14,715)	(16,146)	(15,101)
Other comprehensive (loss) income, net	184	385	(712)	771
Ending Balance	(16,858)	(14,330)	(16,858)	(14,330)
Net Unrealized Losses on Available-for-Sale Debt Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(2,983)	(4,362)	(2,881)	(4,692)
Other comprehensive (loss) income, net	997	135	895	465
Ending Balance	$ (1,986)	$ (4,227)	$ (1,986)	$ (4,227)

Stockholders' Equity - Schedule of Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 03, 2024	Jul. 29, 2023	Aug. 03, 2024	Jul. 29, 2023
Net Unrealized Losses on Available-for-Sale Investments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive (loss) income, before reclassification tax	$ 100,000	$ 100,000	$ 900,000	$ 500,000
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive loss (income), tax	$ 0	$ 0	$ 0	$ 0

Equity Awards - Summary of Total Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 03, 2024	Jul. 29, 2023	Aug. 03, 2024	Jul. 29, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 1,718	$ 1,570	$ 3,391	$ 3,476
Cost of Goods Sold [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	370	382	740	774
Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 1,348	$ 1,188	$ 2,651	$ 2,702

Equity Awards - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	6 Months Ended
	Aug. 03, 2024	Feb. 03, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost related to unvested stock options, restricted stock awards and restricted stock units	$ 12.5
Weighted-average remaining recognition period related to unvested stock options, restricted stock awards and restricted stock units	1 year 3 months 18 days
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options outstanding	0.6	0.4
Grant date weighted average exercise price	$ 22.15	$ 26.51

Equity Awards - Summary of Restricted Stock Awards and Restricted Stock Units (Detail) - Restricted Stock Awards and Restricted Stock Units [Member] $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Aug. 03, 2024 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Stock Awards/Units, Beginning Balance \| shares	495
Restricted Stock Awards/Units, Granted \| shares	495
Restricted Stock Awards/Units, Vested \| shares	(212)
Restricted Stock Awards/Units, Forfeited \| shares	(28)
Restricted Stock Awards/Units, Ending Balance \| shares	750
Grant Date Weighted-Average Fair Value, Beginning Balance \| $ / shares	$ 26.14
Grant Date Weighted-Average Fair Value, Granted \| $ / shares	13.74
Grant Date Weighted-Average Fair Value, Vested \| $ / shares	25.67
Grant Date Weighted-Average Fair Value, Forfeited \| $ / shares	20.76
Grant Date Weighted-Average Fair Value, Ending Balance \| $ / shares	$ 18.29
Intrinsic Value, Ending Balance \| $	$ 18,085

Loss per Share, Basic and Diluted - Computation of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 03, 2024	Jul. 29, 2023	Aug. 03, 2024	Jul. 29, 2023
Earnings Per Share [Abstract]
Net Income (Loss)	$ (847)	$ (8,509)	$ (17,627)	$ (26,891)
Weighted average common shares for basic loss per share:	19,284	19,311	19,375	19,254
Dilutive effect of stock options and restricted stock	0	0	0	0
Weighted average common shares for diluted loss per share:	19,284	19,311	19,375	19,254
Basic loss per share	$ (0.04)	$ (0.44)	$ (0.91)	$ (1.4)
Diluted loss per share	$ (0.04)	$ (0.44)	$ (0.91)	$ (1.4)

Loss per Share, Basic and Diluted - Additional Information (Detail) - shares shares in Millions	3 Months Ended		6 Months Ended
	Aug. 03, 2024	Jul. 29, 2023	Aug. 03, 2024	Jul. 29, 2023
Earnings Per Share [Abstract]
Anti-dilutive common shares related to stock-based awards	0.6	0.4	0.7	0.5

Subsequent Event - Additional Information (Detail) $ in Millions	Jun. 05, 2024 USD ($)
Maximum [Member]
Subsequent Event [Line Items]
Shares approved to purchase under stock repurchase program, value	$ 25

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