Income Taxes |
3 Months Ended |
|---|---|
May 02, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 8. Income Taxes The Company's income tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any. Each quarter, the Company updates its estimate of the annual effective tax rate and makes a year-to-date adjustment to the provision. The Company’s deferred tax assets primarily relate to federal and state net operating loss carryforwards. Realization of these assets depends on the generation of future taxable income. During the fourth quarter of fiscal 2025, the Company recorded a full valuation reserve against its net deferred assets. While the Company believed that profitability would return over the long term, the Company was forecasting operating losses in the near term. At May 2, 2026, management continues to conclude that the negative evidence outweighs available positive evidence regarding realizability of its deferred tax assets and that the full valuation allowance should remain against its net deferred tax assets. For the first quarter of fiscal 2026, the Company’s effective tax rate was (1.1)% as compared to an effective tax rate of 39.7%, for the first quarter of fiscal 2025. Because of the full valuation allowance against the net deferred tax assets, the effective tax rate for the first quarter of fiscal 2026 primarily reflects a provision for state margin tax, based on gross receipts less certain deductions. The effective tax rate for the first three months of fiscal 2025 reflected the impact of permanent book-to-tax differences. |