v3.26.1
Note 7 - Income Taxes
6 Months Ended
Aug. 01, 2026
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

7. Income Taxes

 

The Company's effective tax rate was 24.7% and 23.8% for the thirteen and twenty-six weeks ended August 1, 2026, respectively, compared to 19.3% and 20.8% for the thirteen and twenty-six weeks ended August 2, 2025, respectively. The fiscal 2026 effective tax rate differed from the statutory rate of 21% primarily due to state income tax expense offset partially by the tax impact of equity awards vesting and the foreign-derived deduction eligible income (formerly foreign derived intangible income). The fiscal 2025 effective tax rate differed from the statutory rate of 21% primarily due to state income tax expense offset by the tax impact of equity awards vesting, the foreign-derived intangible income deduction and discrete benefits related to settlement of a prior period tax position. In addition, in the second quarter of fiscal 2026 and 2025, the Company remains in a full valuation allowance in certain foreign jurisdictions.