Income Taxes |
3 Months Ended | ||||||||||||||||||||||||||||||
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Apr. 29, 2023 | |||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||
| Income Taxes |
The provision for income taxes is based on a current estimate of the annual effective tax rate, adjusted to reflect the effect of discrete items. The Company’s effective income tax rate may fluctuate from quarter to quarter as a result of a variety of factors, including the estimate of annual pre-tax income, the related changes in the estimate, and the effect of discrete items. The impact of these items on the effective tax rate will be greater at lower pre-tax levels. The Company evaluates whether deferred tax assets are realizable on a quarterly basis. The Company considers all available positive and negative evidence, including past operating results and expectations of future operating income. Accordingly, the Company maintains a valuation allowance against the amount of deferred tax assets not expected to be realized as of April 29, 2023. The Company’s effective tax rate was (0.5)% and 3.9% for the thirteen weeks ended April 29, 2023 and April 30, 2022, respectively. The effective tax rate for the thirteen weeks ended April 29, 2023 and April 30, 2022 reflect the impact of non-deductible executive compensation and the recording of an additional valuation allowance against the Company's current year losses. The Company's unaudited Consolidated Balance Sheets as of April 29, 2023 and January 28, 2023 reflect $52.3 million of income tax receivable. The Company reclassified the receivable from current to non-current income tax receivable as of April 30, 2022 based on information received from the Internal Revenue Service during the thirteen weeks ended April 30, 2022 that indicated the receivable will not be collected in the next twelve months.
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