Income Taxes |
6 Months Ended |
|---|---|
Aug. 01, 2026 | |
| Income Taxes | |
| Income Taxes | Note 16 Income Taxes The Company’s consolidated effective tax rate can vary considerably from period to period, depending on a number of factors. The Company’s consolidated effective tax rates were a provision of 23.6% and a benefit of 22.0% for the thirteen weeks ended August 1, 2026 and August 2, 2025, respectively. The Company’s consolidated effective tax rates were provisions of 25.4% and 8.8% for the twenty-six weeks ended August 1, 2026 and August 2, 2025, respectively. The higher effective tax rate for the quarter was driven by the pre-tax income and tax provision associated with tariff refunds received during the thirteen weeks ended August 1, 2026, contrasted with a discrete tax benefit of $2.5 million associated with foreign earnings transition tax resolution during the thirteen weeks ended August 2, 2025. Discrete tax provisions related to share-based compensation of $1.5 million and $0.4 million were also recorded for the twenty-six weeks ended August 1, 2026 and August 2, 2025, respectively.
As of August 1, 2026, no deferred taxes have been provided on the accumulated unremitted earnings of the Company’s foreign subsidiaries that are not subject to United States income tax. The Company periodically evaluates its international investment opportunities and plans, as well as its international working capital needs, to determine the level of investment required and, accordingly, determines the level of international earnings that is considered indefinitely reinvested. Based upon that evaluation, earnings of the Company’s international subsidiaries that are not otherwise subject to United States taxation are considered to be indefinitely reinvested, and accordingly, deferred taxes have not been provided. If changes occur in future investment opportunities and plans, those changes will be reflected when known and may result in providing residual United States deferred taxes on unremitted international earnings. |