v3.25.1
INCOME TAXES (Tables)
 12 Months Ended
Feb. 01, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) Before Taxes, Domestic and Foreign
The components of Loss before provision (benefit) for income taxes were as follows:
Fiscal Years Ended
February 1,
2025		February 3,
2024		January 28,
2023
(in thousands)
Domestic$(58,830)$(156,703)$(61,065)
Foreign9,382 42,905 46,303 
Total loss before provision (benefit) for income taxes$(49,448)$(113,798)$(14,762)
Schedule of Components of Provision (Benefit) for Income Taxes
The components of the Company’s Provision (benefit) for income taxes consisted of the following:
Fiscal Years Ended
February 1,
2025		February 3,
2024		January 28,
2023
(in thousands)
Current:
Federal$4,812$(1,239)$4,172
State and local1,120249(1,193)
Foreign2,4394,758(2,842)
8,3713,768137
 Deferred:
 Federal—21,125(12,030)
 State and local—13,019(2,712)
 Foreign—2,831981
—36,975(13,761)
Total provision (benefit) for income taxes$8,371$40,743$(13,624)
Effective tax rate(16.9)%(35.8)%92.3 %
Schedule of Reconciliation of Tax Provision (Benefit)
A reconciliation between the calculated tax provision (benefit) based on the U.S. federal statutory rate of 21.0% and the effective tax rate for Fiscal 2024, Fiscal 2023, and Fiscal 2022 follows:
Fiscal Years Ended
February 1,
2025		February 3,
2024		January 28,
2023
(in thousands)
Calculated income tax benefit at U.S. federal statutory rate$(10,384)$(23,898)$(3,100)
State and local income taxes, net of federal benefit(2,145)(6,901)(3,812)
Foreign tax rate differential (1)
(3,082)(4,937)(5,498)
Non-deductible expenses2,654 (1,488)3,696 
Excess tax detriment related to stock compensation889 558 816 
Unrecognized tax benefits104 3,127 (5,324)
Change in valuation allowance18,251 68,625 163 
Global intangible low-taxed income251 9,505 1,760 
Federal tax credits(291)(3,242)(2,934)
Other2,124 (606)609 
Total provision (benefit) for income taxes
$8,371 $40,743 $(13,624)
____________________________________________
(1)     The Company has substantial operations in Hong Kong, which has a lower statutory income tax rate as compared to the U.S. The Company’s foreign effective tax rate for Fiscal 2024, Fiscal 2023, and Fiscal 2022 was 17.5%, 11.6%, and 9.8%, respectively. This rate will fluctuate from year to year in response to changes in the mix of income by country, as well as changes in tax laws in foreign jurisdictions.
Schedule of Deferred Tax Assets and Liabilities
The tax effects of temporary differences which give rise to deferred tax assets and liabilities were as follows:
February 1,
2025		February 3,
2024
(in thousands)
Deferred tax assets:
 Operating lease liabilities$45,209 $48,122 
 Capitalized research and development, net22,193 23,653 
Net operating loss carryforward13,578 13,704 
 Reserves10,295 10,167 
Interest expense carryforward
16,853 9,980 
Tax credits
5,616 6,630 
 Inventory10,299 3,333 
 Tradenames and customer databases, net9,407 3,304 
Charitable contributions815 1,084 
 Stock-based compensation843 924 
Subtotal135,108 120,901 
Less: valuation allowance(88,148)(69,898)
Total deferred tax assets46,960 51,003 
Deferred tax liabilities:
 Right-of-use assets (41,460)(44,844)
 Property and equipment, net(3,530)(3,149)
Prepaid expenses(998)(2,038)
Foreign and state tax on unremitted earnings(1,554)(1,554)
Total deferred tax liabilities(47,542)(51,585)
 Total deferred tax liabilities, net$(582)$(582)
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the gross amounts of unrecognized tax benefits, excluding accrued interest and penalties, is as follows:
Fiscal Years Ended
February 1,
2025		February 3,
2024
(in thousands)
 Beginning Balance$6,990 $3,626 
 Additions for current year tax positions636 1,756 
 Additions for prior year tax positions35 1,608 
 Reductions for prior year tax positions(661)— 
 Reductions related to settlements with taxing authorities(70)— 
 Reductions due to a lapse of the applicable statute of limitations(56)— 
 Ending Balance$6,874 $6,990