v3.26.1
Income Taxes
6 Months Ended
Aug. 02, 2026
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
13.Income Taxes

 

In the fiscal 2027 second quarter, we recorded income tax expenses of $338,000 under continuing operations and $122,000 under the discontinued operations. In the fiscal 2026 second quarter, we recorded income tax benefits of $114,000 under continuing operations and $1.1 million under discontinued operations. The effective tax rate for continuing operations was 21.3% for the second quarter of fiscal 2027 compared to 17.3% for the second quarter of fiscal 2026. The increase was primarily due to a prior-year state net operating loss valuation allowance adjustment, along with the shifting tax impact of company-owned life insurance gains and restricted stock compensation relative to prior-year pretax losses versus current-year pretax income.

 

In the fiscal 2027 first half, we recorded income tax expenses of $664,000 under continuing operations and $122,000 under the discontinued operations. In the fiscal 2026 first half, we recorded income tax benefits of $278,000 under continuing operations and $1.7 million under discontinued operations. The effective tax rate for continuing operations was 22.3% for the first six months of fiscal 2027 compared to 19.3% for the first six months of fiscal 2026. The increase in the effective tax rate for the year-to-date period was driven by the same factors noted above.

 

No material and non-routine positions have been identified as uncertain tax positions.

 

Tax years ending January 29, 2023 through February 1, 2026 remain subject to examination by federal and state taxing authorities.