Intangible Assets

In 2018, the Company performed a quantitative analysis and determined that no impairment was necessary on its intangible assets with indefinite lives. This analysis resulted in estimated fair values that exceeded the carrying values by a more than an insignificant amount; however, the estimated fair values decreased compared to prior year due to decreased financial results. During the twenty-six weeks ended August 3, 2019, the Company continued to experience negative comparable sales and a decline in the Company’s stock price. The Company has evaluated whether these indicate a potential impairment of intangible assets with indefinite lives as of August 3, 2019. Additionally, the Company has considered, among other factors, the 2019 full year forecast, whether the results for the twenty-six week period ended August 3, 2019 were consistent with the forecast, and expected future expense reductions. Based on these factors, the Company determined there were no events or circumstances that indicate it is more likely than not that the fair value of its intangible assets with indefinite lives is less than the carrying value. However, the intangible assets with indefinite lives are at risk of impairment if comparable sales continue to decline more than our expectations, future expense reductions are not achieved, or the Company does not meet its forecasted financial results.