XML 33 R17.htm IDEA: XBRL DOCUMENT
v3.25.1

Note 8 - Income Taxes | 12 Months Ended
--- | ---
Feb. 01, 2025
Notes to Financial Statements |
Income Tax Disclosure [Text Block] |
(8) | Income Taxes
The Company’s income before income taxes from domestic and foreign operations (which include the U.K., Canada, China, and Ireland), is as follows (in thousands):
|  | Fiscal year ended |
|  | February 1, |  |  | February 3, |
|  | 2025 |  |  | 2024 |
Domestic |  | $ | 63,872 |  |  | $ | 61,110 |
Foreign |  |  | 3,269 |  |  |  | 5,219 |
Total income before income taxes |  | $ | 67,141 |  |  | $ | 66,329 |
The components of the income tax expense are as follows (in thousands):
|  | Fiscal year ended |
|  | February 1, |  |  | February 3, |
|  | 2025 |  |  | 2024 |
Current: |  |  |  |  |  |  |  |
U.S. Federal |  | $ | 11,345 |  |  | $ | 12,080 |
U.S. State |  |  | 2,834 |  |  |  | 3,205 |
Foreign |  |  | 54 |  |  |  | 145 |
Deferred: |  |  |  |  |  |  |  |
U.S. Federal |  |  | 683 |  |  |  | (537 | )
U.S. State |  |  | 161 |  |  |  | (212 | )
Foreign |  |  | 279 |  |  |  | (1,157 | )
Income tax expense |  | $ | 15,356 |  |  | $ | 13,524 |
The provision for income taxes was $15.4 million in fiscal 2024 compared to $13.5 million in fiscal 2023. The 2024 effective rate of 22.9% differed from the statutory rate of 21% primarily due to state income tax expense partially offset by the tax benefit of the foreign-derived intangible income (FDII) deduction. The 2023 effective rate of 20.4% differed from the statutory rate of 21% primarily due to the reversal of the valuation allowance in the U.K. partially offset by state income tax expense. The Company periodically assesses whether it is more likely than not that it will generate sufficient taxable income to realize its deferred income tax assets based on all available positive and negative evidence. Changes in the valuation allowance in fiscal 2024 are primarily related to functional currency fluctuations. Differences between the provision for income taxes at the U.S. federal statutory income tax rate and the provision in the consolidated statements of operations are as follows:
|  | February 1, |  |  | February 3, |
|  | 2025 |  |  | 2024 |
Income before income taxes |  | $ | 67,141 |  |  | $ | 66,329 |
U.S. federal statutory income tax rate |  |  | 21 | % |  |  | 21 | %
Income tax expense at statutory federal rate |  |  | 14,100 |  |  |  | 13,929 |
State and local income taxes, net of federal tax benefit |  |  | 2,433 |  |  |  | 2,354 |
Foreign-derived intangible income benefit |  |  | (891 | ) |  |  | (534 | )
Non deductible executive compensation |  |  | 572 |  |  |  | 1,038 |
Effect of lower foreign taxes |  |  | 130 |  |  |  | 639 |
Adjustment for unrecognized tax positions |  |  | 18 |  |  |  | 3 |
Valuation allowance |  |  | (1 | ) |  |  | (5,075 | )
Other items, net |  |  | (1,005 | ) |  |  | 1,170 |
Income tax expense (benefit) |  | $ | 15,356 |  |  | $ | 13,524 |
Effective tax rate |  |  | 22.9 | % |  |  | 20.4 | %
Temporary differences that gave rise to deferred tax assets and liabilities are as follows (in thousands):
|  | February 1, |  |  | February 3, |
|  | 2025 |  |  | 2024 |
Deferred tax assets: |  |  |  |  |  |  |  |
Operating lease liability |  | $ | 23,866 |  |  | $ | 21,091 |
Deferred revenue |  |  | 2,973 |  |  |  | 3,173 |
Intangible assets |  |  | 2,747 |  |  |  | 2,954 |
Accrued compensation |  |  | 1,624 |  |  |  | 2,249 |
Deferred compensation |  |  | 1,034 |  |  |  | 822 |
Depreciation |  |  | 918 |  |  |  | 1,063 |
Receivables write-offs |  |  | 849 |  |  |  | 806 |
Net operating loss carryforwards |  |  | 806 |  |  |  | 849 |
Inventories |  |  | 674 |  |  |  | 871 |
Accrued expenses |  |  | 329 |  |  |  | 334 |
Carryforward of tax credits |  |  | 222 |  |  |  | 222 |
Other |  |  | 68 |  |  |  | 163 |
Total gross deferred tax assets |  |  | 36,110 |  |  |  | 34,597 |
Less: Valuation allowance |  |  | (1,533 | ) |  |  | (1,546 | )
Total deferred tax assets, net of valuation allowance |  |  | 34,577 |  |  |  | 33,051 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Operating lease right-of-use assets |  |  | (21,557 | ) |  |  | (17,999 | )
Depreciation |  |  | (3,096 | ) |  |  | (4,222 | )
Deferred expense |  |  | (1,436 | ) |  |  | (1,451 | )
Inventories |  |  | (890 | ) |  |  | (682 | )
Other |  |  | (2 | ) |  |  | (15 | )
Total deferred tax liabilities |  |  | (26,981 | ) |  |  | (24,369 | )
Net deferred tax assets |  | $ | 7,596 |  |  | $ | 8,682 |
As of February 1, 2025, the Company had gross net operating loss (NOL) carryforwards of approximately $3.2 million, $1.8 million of which relate to the U.K. where NOLs have no expiration date, and $1.4 million of which relate to China where NOLs are carried forward for five years subsequent to the year in which the loss was incurred. The Company continues to assert its investments in foreign subsidiaries are permanent in duration and it is not practical to estimate the income tax liability on the outside basis differences. As of February 1, 2025, the Company had no unrecognized tax benefits. As of February 3, 2024, the Company had total unrecognized tax benefits of $0.1 million, of which $0.1 million would favorably impact the Company’s provision for income taxes if recognized. In the fourth quarter of fiscal year 2024, the Company recorded additional unrecognized tax benefits of $0.1 million and settled all unrecognized tax benefits of $0.1 million. The Company reviews its uncertain tax positions periodically and accrues interest and penalties accordingly. Accrued interest and penalties included within other liabilities in the consolidated balance sheets was $0.0 million and less than $0.1 million for the years ended February 1, 2025, and February 3, 2024, respectively. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes within the consolidated statement of operations. For the years ended February 1, 2025, and February 3, 2024, the Company recognized an (expense) benefit of less than ($0.1) million and ($0.1) million, respectively, for interest and penalties. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
|  | February 1, |  |  | February 3, |
|  | 2025 |  |  | 2024 |
Balance at beginning of year |  |  | 66 |  |  |  | 66 |
Increases for prior year tax positions |  |  | 8 |  |  |  | - |
Settlements |  |  | (74 | ) |  |  | - |
Balance at end of year |  |  | - |  |  |  | 66 |
Management does not expect the amount of unrecognized tax benefits to change by a material amount in the next twelve months. The following tax years remain open in the Company’s major taxing jurisdictions as of February 1, 2025:
United States (Federal) | 2021 through 2024
United Kingdom | 2020 through 2024

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

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: 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/1943274/2147477891/740-270-50-1 Reference 9: 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 10: 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 11: 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 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: 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 14: 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 15: 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 16: 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 17: 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