v3.26.1
Fair Value Measurements
 3 Months Ended
May 02, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 5 - Fair Value Measurements

Financial Instruments

The following table presents financial instruments that are measured at fair value on a recurring basis at May 2, 2026, January 31, 2026 and May 3, 2025:

 

 

 

Fair Value Measurements

 

(In thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

As of May 2, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents - money market mutual funds

 

$

101,610

 

 

$

0

 

 

$

0

 

 

$

101,610

 

Marketable securities - mutual funds that fund
    deferred compensation

 

 

13,248

 

 

 

0

 

 

 

0

 

 

 

13,248

 

Total

 

$

114,858

 

 

$

0

 

 

$

0

 

 

$

114,858

 

As of January 31, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents - money market mutual funds

 

$

109,149

 

 

$

0

 

 

$

0

 

 

$

109,149

 

Marketable securities - mutual funds that fund
    deferred compensation

 

 

13,636

 

 

 

0

 

 

 

0

 

 

 

13,636

 

Total

 

$

122,785

 

 

$

0

 

 

$

0

 

 

$

122,785

 

As of May 3, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents - money market mutual funds

 

$

68,330

 

 

$

0

 

 

$

0

 

 

$

68,330

 

Marketable securities - mutual funds that fund
    deferred compensation

 

 

14,477

 

 

 

0

 

 

 

0

 

 

 

14,477

 

Total

 

$

82,807

 

 

$

0

 

 

$

0

 

 

$

82,807

 

We invest in publicly traded mutual funds with readily determinable fair values. These Marketable Securities are designed to mitigate volatility in our Consolidated Statements of Income associated with our non-qualified deferred compensation plan. As of May 2, 2026, these Marketable Securities were principally invested in equity-based mutual funds, consistent with the allocation in our deferred compensation plan. To the extent there is a variation in invested funds compared to the total non-qualified deferred compensation plan liability, such fund variance is managed through a stable value mutual fund. We classify these Marketable Securities as current assets because we have the ability to convert the securities into cash at our discretion and these Marketable Securities are not held in a rabbi trust. Changes in these Marketable Securities and deferred compensation plan liabilities are charged to SG&A.

Contingent Consideration

The following table presents liabilities that are measured at fair value on a recurring basis at May 2, 2026, January 31, 2026 and May 3, 2025:

 

 

 

Fair Value Measurements

 

(In thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

As of May 2, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

0

 

 

$

0

 

 

$

459

 

 

$

459

 

Total

 

$

0

 

 

$

0

 

 

$

459

 

 

$

459

 

As of January 31, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

0

 

 

$

0

 

 

$

451

 

 

$

451

 

Total

 

$

0

 

 

$

0

 

 

$

451

 

 

$

451

 

As of May 3, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

0

 

 

$

0

 

 

$

401

 

 

$

401

 

Total

 

$

0

 

 

$

0

 

 

$

401

 

 

$

401

 

 

 

Deferred Compensation Plan Liabilities and Related Marketable Securities

The following tables present the balances and activity of the Company’s deferred compensation plan liabilities and related Marketable Securities:

 

(In thousands)

 

May 2, 2026

 

 

January 31, 2026

 

 

May 3, 2025

 

Deferred compensation plan current liabilities

 

$

206

 

 

$

1,235

 

 

$

4,266

 

Deferred compensation plan long-term liabilities

 

 

12,682

 

 

 

12,114

 

 

 

9,539

 

Total deferred compensation plan liabilities

 

$

12,888

 

 

$

13,349

 

 

$

13,805

 

Marketable securities - mutual funds that fund deferred compensation

 

$

13,248

 

 

$

13,636

 

 

$

14,477

 

 

(In thousands)

 

Thirteen
Weeks Ended
 May 2, 2026

 

 

Thirteen
Weeks Ended
 May 3, 2025

 

Deferred compensation liabilities

 

 

 

 

 

 

   Employer contributions, net

 

$

111

 

 

$

114

 

   Investment earnings (losses)

 

 

220

 

 

 

(436

)

Marketable Securities

 

 

 

 

 

 

Mark-to-market (gains) losses (1)

 

 

(211

)

 

 

605

 

Net deferred compensation expense

 

$

120

 

 

$

283

 

(1) Included in the mark-to-market activity related to equity securities still held at quarter-end, we recognized an unrealized gain of $116,000 and an unrealized loss of $94,000 for the thirteen weeks ended May 2, 2026 and May 3, 2025, respectively.

The fair values of Cash and Cash Equivalents, Accounts Receivable, Accounts Payable and Accrued and Other Liabilities approximate their carrying values because of their short-term nature.

Long-Lived Asset Impairment Testing

We periodically evaluate our long-lived assets for impairment if events or circumstances indicate that the carrying value may not be recoverable. The carrying value of long-lived assets is considered impaired when the carrying value of the assets exceeds the expected future cash flows to be derived from their use. Assets are grouped, and the evaluation is performed, at the lowest level for which there are identifiable cash flows, which is generally at a store level. Store level asset groupings typically include Property and Equipment and Operating Lease Right-of-Use Assets, net of the current and long-term portions of Operating Lease Liabilities. Assets subject to impairment are adjusted to estimated fair value and, if applicable, an impairment loss is recorded in SG&A. If the Operating Lease Right-of-Use Asset is impaired, we would amortize the remaining right-of-use asset on a straight-line basis over the remaining lease term.

We estimate the fair value of our long-lived assets using store specific cash flow assumptions discounted by a rate commensurate with the risk involved with such assets while incorporating marketplace assumptions. Our estimates are derived from an income-based approach considering the cash flows expected over the remaining lease term for each location. These projections are primarily based on management’s estimates of store-level sales, exercise of future lease renewal options and the store’s contribution to cash flows and, by their nature, include judgments about how current initiatives will impact future performance. We estimate the fair value of Operating Lease Right-of-Use Assets using the market value of rents applicable to the leased asset, discounted using the remaining lease term.

External factors, such as the local environment in which the store is located, including store traffic and competition, are evaluated in terms of their effect on sales trends. Changes in sales and operating income assumptions or unfavorable changes in external factors can significantly impact the estimated future cash flows. An increase or decrease in the projected cash flow can significantly impact the fair value of these assets, which may have an effect on the impairment recorded. If actual operating results or market conditions differ from those anticipated, the carrying value of certain of our assets may prove unrecoverable and we may incur additional impairment charges in the future.

 

As described in Note 2 - “CEO Transition and Related Strategic Review”, we recorded $8.3 million in long-lived asset impairment charges, other Property and Equipment write-offs and other charges in our SG&A during the thirteen weeks ended May 2, 2026. Of those charges, $6.3 million were associated with long-lived asset impairments at seven stores. No impairment charges were recorded during the thirteen weeks ended May 3, 2025. No impairments of Operating Lease Right-of-Use Assets were recorded in either of these periods.