v3.26.1
Income Taxes
 3 Months Ended
May 02, 2026
Income Tax Disclosure [Abstract]  
Income Taxes

7. Income Taxes

Income tax expense was $27.9 million during the first quarter of Fiscal 2026 compared with $32.0 million during the first quarter of Fiscal 2025. The effective tax rate for the first quarter of Fiscal 2026 was 19.6% compared with 24.1% during the first quarter of Fiscal 2025. The decrease in income tax expense and the lower tax rate was primarily attributable to the tax benefit from stock-based compensation.

Net deferred taxes are as follows:

 

 

(in thousands)

 

 

 

May 2,

 

 

January 31,

 

 

May 3,

 

 

 

2026

 

 

2026

 

 

2025

 

Deferred tax asset

 

$

2,139

 

 

$

2,139

 

 

$

2,248

 

Deferred tax liability

 

 

299,589

 

 

 

277,771

 

 

 

249,756

 

Net deferred tax liability

 

$

297,450

 

 

$

275,632

 

 

$

247,508

 

Net deferred tax assets relate to Puerto Rico deferred balances that have a future net benefit for tax purposes. Net deferred tax liabilities primarily relate to intangible assets and depreciation expense where the Company has a future obligation for tax purposes.

 

As of May 2, 2026, the Company had a $3.1 million deferred tax asset related to net operating losses, which relates to state net operating losses that expire at various dates between 2036 and 2040.

 

As of May 2, 2026, the Company has tax credit carry-forwards totaling $9.8 million, inclusive of $9.5 million in foreign tax credits which will begin to expire in Fiscal 2033 and $0.3 million of state tax credit carry-forwards that have an indefinite life.

 

As of May 2, 2026, January 31, 2026 and May 3, 2025, valuation allowances totaled $9.6 million, $8.4 million and $9.3 million, respectively. These valuation allowances relate to foreign tax credit carry-forwards and state tax credit carry-forwards. The Company believes it is more likely than not that this portion of the deferred tax assets will not be realized.