XML 30 R15.htm IDEA: XBRL DOCUMENT
v3.24.1

INCOME TAXES | 12 Months Ended
--- | ---
Jan. 31, 2024
INCOME TAXES [Abstract] |
INCOME TAXES | NOTE 9 — INCOME TAXES ​ The income tax provision is comprised of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended January 31,
​ |  | 2024 |  | 2023 |  | 2022
​ | ​ | (In thousands)
Current | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | $ | 42,376 | ​ | $ | 27,982 | ​ | $ | 39,283
State and city | ​ | ​ | 9,768 | ​ | ​ | 8,278 | ​ | ​ | 4,484
Foreign | ​ | ​ | 9,971 | ​ | ​ | 14,647 | ​ | ​ | 5,991
​ | ​ | ​ | 62,115 | ​ | ​ | 50,907 | ​ | ​ | 49,758
Deferred | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | ​ | 6,469 | ​ | ​ | (50,764) | ​ | ​ | 17,090
State and city | ​ | ​ | 878 | ​ | ​ | (4,457) | ​ | ​ | 2,116
Foreign | ​ | ​ | (3,603) | ​ | ​ | 526 | ​ | ​ | 1,911
​ | ​ | ​ | 3,744 | ​ | ​ | (54,695) | ​ | ​ | 21,117
Income tax expense (benefit) | ​ | $ | 65,859 | ​ | $ | (3,788) | ​ | $ | 70,875
Income (loss) before income taxes | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
United States | ​ | $ | 218,528 | ​ | $ | (106,086) | ​ | $ | 234,034
Non-United States | ​ | ​ | 22,071 | ​ | ​ | (32,084) | ​ | ​ | 36,942
​ | ​ | $ | 240,599 | ​ | $ | (138,170) | ​ | $ | 270,976
​ Effective January 1, 2018, the Tax Cuts and Jobs Act (“TCJA”) subjects a U.S. parent company to current tax on its global intangible low-taxed income (“GILTI”). For fiscal 2024, the Company has elected to treat the tax effect of GILTI as a current period expense. ​ The significant components of the Company’s net deferred tax liabilities at January 31, 2024 and 2023 are summarized as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2024 |  | 2023
​ | ​ | (In thousands)
Deferred income tax assets: | ​ | ​ | ​ | ​ | ​ | ​
Compensation | ​ | $ | 3,444 | ​ | $ | 879
Inventory | ​ | ​ | 13,756 | ​ | ​ | 12,197
Provision for bad debts and sales allowances | ​ | ​ | 11,918 | ​ | ​ | 15,237
Supplemental employee retirement plan | ​ | ​ | 792 | ​ | ​ | 688
Net operating loss | ​ | ​ | 40,183 | ​ | ​ | 33,749
Operating lease liability | ​ | ​ | 52,341 | ​ | ​ | 56,519
Foreign tax credit carryforward | ​ | ​ | 5,594 | ​ | ​ | 3,865
Section 174 R&D amortization | ​ | ​ | 1,016 | ​ | ​ | 478
Other | ​ | ​ | 4,919 | ​ | ​ | —
Gross deferred income tax assets | ​ | ​ | 133,963 | ​ | ​ | 123,612
Less: valuation allowance | ​ | ​ | (39,140) | ​ | ​ | (33,087)
Net deferred income tax assets | ​ | ​ | 94,823 | ​ | ​ | 90,525
Deferred income tax liabilities: | ​ | ​ | ​ | ​ | ​ | ​
Depreciation and amortization | ​ | ​ | (15,821) | ​ | ​ | (6,268)
Intangibles | ​ | ​ | (51,071) | ​ | ​ | (48,760)
Operating lease asset | ​ | ​ | (46,546) | ​ | ​ | (50,995)
Accrued expenses | ​ | ​ | — | ​ | ​ | (57)
Prepaid expenses and other | ​ | ​ | (2,149) | ​ | ​ | (2,279)
Other | ​ | ​ | (2,724) | ​ | ​ | (560)
Total deferred income tax liabilities | ​ | ​ | (118,311) | ​ | ​ | (108,919)
Net deferred income tax liabilities | ​ | $ | (23,488) | ​ | $ | (18,394)
​ The Company intends to indefinitely reinvest substantially all of the undistributed earnings of its foreign subsidiaries. The total undistributed earnings of the Company’s foreign subsidiaries that are considered to be indefinitely reinvested were approximately $150 million as of January 31, 2024. Upon distribution of these earnings in the form of dividends or otherwise, the Company does not anticipate any material tax costs. As such, no deferred taxes have been provided for withholding taxes or other taxes that would result upon repatriation of these undistributed foreign earnings. ​ On December 12, 2022, the Council of the European Union (“EU”) announced that EU member states reached an agreement to implement the minimum tax component of the Organization for Economic Co-operation and Development’s international tax reform initiative, known as Pillar Two. The Pillar Two Model Rules provide for a global minimum tax of 15% for multinational enterprise groups, and is expected to be effective for our fiscal year ending January 31, 2025. While the Company does not expect these rules to have a material impact on its effective tax rate or financial results, the Company continues to monitor evolving tax legislation in the jurisdictions in which it operates. ​ ​ The following is a reconciliation of the statutory federal income tax rate to the effective rate reported in the financial statements for the years ended January 31: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2024 |  | ​ | 2023 |  | ​ | 2022 | ​
Provision for Federal income taxes at the statutory rate | ​ | 21.0 | % | ​ | 21.0 | % | ​ | 21.0 | %
State and local income taxes, net of Federal tax benefit | ​ | 3.7 | ​ | ​ | (2.1) | ​ | ​ | 2.0 | ​
Permanent differences | ​ | 2.8 | ​ | ​ | (2.1) | ​ | ​ | 2.8 | ​
U.S. tax on foreign earnings | ​ | 1.8 | ​ | ​ | (6.0) | ​ | ​ | 1.5 | ​
Foreign tax rate differential | ​ | 1.0 | ​ | ​ | 1.2 | ​ | ​ | — | ​
Foreign tax credit | ​ | (2.9) | ​ | ​ | 7.9 | ​ | ​ | (3.4) | ​
Valuation allowance | ​ | 0.4 | ​ | ​ | (3.1) | ​ | ​ | 0.8 | ​
Goodwill impairment | ​ | — | ​ | ​ | (17.3) | ​ | ​ | — | ​
Non-taxable capital gain | ​ | — | ​ | ​ | 5.1 | ​ | ​ | — | ​
Other, net(1) | ​ | (0.4) | ​ | ​ | (1.9) | ​ | ​ | 1.5 | ​
Actual provision for income taxes | ​ | 27.4 | % | ​ | 2.7 | % | ​ | 26.2 | %
(1) | Prior year share-based payments have been reclassed to Other, net for presentation purposes.
​ The Company’s effective tax rate increased to 27.4% in fiscal 2024 compared to 2.7% in fiscal 2023. This increase in the Company’s effective tax rate is primarily the result of the Company’s charges related to goodwill impairment of $347.2 million which significantly decreased pretax book income in relation to its tax expense in fiscal 2023, as well as operating losses generated in certain foreign jurisdictions during fiscal 2024 that are not expected to be realized. The Company’s effective tax rate decreased to 2.7% in fiscal 2023 compared to 26.2% in fiscal 2022. This decrease in the Company’s effective tax rate is primarily the result of the Company’s charges related to goodwill impairment of $347.2 million which significantly decreased pretax book income in relation to its tax expense. ​ At January 31, 2024, the Company had state net operating loss carryforwards of $3.9 million, of which $2.1 million carryforward indefinitely and the remainder primarily expires in 2036 through 2041. In addition, the Company had foreign net operating loss carryforwards of $36.3 million, with most jurisdictions having indefinite carryforward periods. At January 31, 2024, the Company also has federal foreign tax credit carryforwards of $5.6 million, which expire in 2029 through 2034. ​ Valuation allowances represent deferred tax benefits where management is uncertain if the Company will have the ability to recognize those benefits in the future. During the year ended January 31, 2024, the Company recorded an increase to its valuation allowance of $6.0 million against its deferred tax assets, of which $1.7 million related to an increase in the Company’s deferred tax assets and related valuation allowance for excess foreign tax credits, $6.7 million related to a net increase in the Company’s deferred tax assets and related valuation allowance for standalone state tax losses and foreign retail losses and $2.4 million related to a decrease in the Company’s valuation allowance for foreign losses expected to be utilized. ​ Unrecognized Tax Benefits ​ A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits (excluding interest and penalties) is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2024 |  | 2023 |  | 2022
​ | ​ | (In thousands)
Balance at February 1, | ​ | $ | 3,582 | ​ | $ | 2,442 | ​ | $ | 2,293
Additions based on tax positions related to the current year | ​ | ​ | 57 | ​ | ​ | 245 | ​ | ​ | —
Additions for tax positions of prior years | ​ | ​ | 1,015 | ​ | ​ | 895 | ​ | ​ | 595
Reductions for tax positions of prior years | ​ | ​ | (413) | ​ | ​ | — | ​ | ​ | —
Lapses of statutes of limitations | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (446)
Balance at January 31, | ​ | $ | 4,241 | ​ | $ | 3,582 | ​ | $ | 2,442
​ The Company accounts for uncertain income tax positions in accordance with ASC 740 — Income Taxes. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. As of January 31, 2024, there was an increase in the unrecognized tax position reserve of $0.7 million related to state, local and foreign income tax return filings. The Company’s policy on classification is to include interest in interest and financing charges, net and penalties in selling, general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income (loss). The Company and certain of its subsidiaries are subject to U.S. federal income tax as well as the income tax of multiple state, local, and foreign jurisdictions. Of the major jurisdictions, the Company and its subsidiaries are subject to examination in the United States and various foreign jurisdictions for fiscal year 2016 and forward. The Company is currently under audit examination by New York for fiscal years 2016 through 2018, France for fiscal years 2019 through 2021 and the Netherlands for fiscal year 2021. The Company believes that it is reasonably possible there will be a reduction in its unrecognized income tax benefits related to foreign exposures, prior to any annual increase, of $2.1 million during the next twelve months due to the expiration of applicable statues of limitations.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration