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Note 7 - Income Taxes
 9 Months Ended
Nov. 01, 2025
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

7. Income Taxes

 

On July 4, 2025, the "One Big Beautiful Bill Act" ("OBBBA") was signed into law. The Company has analyzed the legislation and expects that the OBBBA will have an immaterial impact on our FY25 and FY26 effective tax rate. The Company is continuing to evaluate the impacts as additional information is provided. 

 

The Company's effective tax rate was 24.3% and 21.6% for the thirteen and thirty-nine weeks ended November 1, 2025 compared to 24.5% and 24.1% for the thirteen and thirty-nine weeks ended November 2, 2024. The fiscal 2025 effective tax rate differed from the statutory rate of 21% primarily due to state income tax expense offset by the tax impact of equity awards vesting, the foreign-derived intangible income deduction and discrete benefits related to settlement of a prior period tax position. The fiscal 2024 effective tax rate differed from the statutory rate of 21% primarily due to state income tax expense partially offset by the tax impact of equity awards vesting.  In addition, in the third quarter of fiscal 2025 and 2024, the Company remains in a full valuation allowance in certain foreign jurisdictions.