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Fair Value Measurements | 12 Months Ended
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Feb. 01, 2025
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows: •Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that can be accessed at the measurement date. •Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e. interest rates, yield curves, etc.) and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). •Level 3—Unobservable inputs that reflect assumptions about what market participants would use in pricing the asset or liability. These inputs are based on the best information available, including the Company’s own data. The following presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands):
|  | Fair Value Measurements
|  | Feb 1, 2025 |  | Feb 3, 2024
Recurring Fair Value Measures |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange currency contracts |  | $ | — |  |  | $ | 10,467 |  |  | $ | — |  |  | $ | 10,467 |  |  | $ | — |  |  | $ | 2,278 |  |  | $ | — |  |  | $ | 2,278 |
2028 Bond Hedge |  | — |  |  | — |  |  | 11,252 |  |  | 11,252 |  |  | — |  |  | — |  |  | 85,918 |  |  | 85,918 |
Interest rate swap |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 797 |  |  | — |  |  | 797 |
Total |  | $ | — |  |  | $ | 10,467 |  |  | $ | 11,252 |  |  | $ | 21,719 |  |  | $ | — |  |  | $ | 3,075 |  |  | $ | 85,918 |  |  | $ | 88,993 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange currency contracts |  | $ | — |  |  | $ | 8 |  |  | $ | — |  |  | $ | 8 |  |  | $ | — |  |  | $ | 1,702 |  |  | $ | — |  |  | $ | 1,702 |
Embedded derivative |  | — |  |  | — |  |  | 2,460 |  |  | 2,460 |  |  | — |  |  | — |  |  | 16,390 |  |  | 16,390 |
Deferred compensation obligations |  | — |  |  | 18,978 |  |  | — |  |  | 18,978 |  |  | — |  |  | 17,164 |  |  | — |  |  | 17,164 |
Total |  | $ | — |  |  | $ | 18,986 |  |  | $ | 2,460 |  |  | $ | 21,446 |  |  | $ | — |  |  | $ | 18,866 |  |  | $ | 16,390 |  |  | $ | 35,256 |
Foreign exchange currency contracts may be entered into by the Company to hedge the future payment of inventory and intercompany transactions by non-U.S. subsidiaries. Periodically, the Company may also use foreign exchange currency contracts to hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries. The fair values of the Company’s foreign exchange currency contracts are based on quoted foreign exchange forward rates at the reporting date. The fair value of the interest rate swap is based upon inputs corroborated by observable market data. Deferred compensation obligations to employees are adjusted based on changes in the fair value of the underlying employee-directed investments. Fair value of these obligations is based upon inputs corroborated by observable market data. The fair values of the embedded derivative and the 2028 Bond Hedge related to the Additional 2028 Notes were initially measured at $16.2 million and $84.7 million, respectively, based on the observed transactions. Subsequent fair values are measured using a binomial lattice model utilizing observable inputs (e.g. the Company’s stock price) and unobservable inputs (e.g. the expected volatility and instrument specific credit spread) that cause the valuation measurements to be classified as Level 3. The following assumptions were used within the model:
Valuation Assumptions |  | Feb 1, 2025 |  | Feb 3, 2024
Expected volatility |  | 30 | % |  | 30 | %
Risk-free interest rate |  | 4.3 | % |  | 4.1 | %
Credit spread |  | 3.2 | % |  | 4.3 | %
Dividend yield |  | 9.1 | % |  | 5.2 | %
Term to maturity |  | 3.2 years |  | 4.2 years
Stock price |  | $ | 12.91 |  |  | $ | 22.86 |
As of February 1, 2025, if the expected volatility were increased to 40%, keeping all other inputs constant, the fair value of the embedded derivative would increase from $2.5 million to $5.6 million and the fair value of the 2028 Bond Hedge would increase from $11.3 million to $25.7 million. If the expected volatility were decreased to 20%, the fair value of the embedded derivative would decrease from $2.5 million to $0.5 million and the fair value of the 2028 Bond Hedge would decrease from $11.3 million to $2.4 million. If the credit spread increased from 3.2% to 4.2%, keeping all other inputs constant, the fair value of the embedded derivative would increase from $2.5 million to $2.6 million and the fair value of the 2028 Bond Hedge would increase from $11.3 million to $11.9 million. If the credit spread decreased from 3.2% to 2.2%, the fair value of the embedded derivative would decrease from $2.5 million to $2.3 million and the fair value of the 2028 Bond Hedge would decrease from $11.3 million to $10.7 million. The following presents a reconciliation of the Company’s financial assets and liabilities measured at fair value as of February 1, 2025 and February 3, 2024, using significant unobservable inputs (Level 3), and the change in fair value recorded in other income (expense), net in the consolidated statements of income (in thousands):
| Embedded Derivative |  | 2028 Bond Hedge
Balance as of January 28, 2023 | $ | — |  |  | $ | — |
Initial bifurcation of embedded derivative | (16,155) |  |  | — |
Purchase of Additional 2028 Bond Hedge | — |  |  | 16,155 |
Reclassification of Initial 2028 Bond Hedge | — |  |  | 68,530 |
Gain (loss) on fair value remeasurement | (235) |  |  | 1,233 |
Balance as of February 3, 2024 | $ | (16,390) |  |  | $ | 85,918 |
Initial bifurcation of embedded derivative | (6,538) |  |  | — |
Purchase of Additional 2028 Bond Hedge | — |  |  | 6,538 |
Gain (loss) on fair value remeasurement | 20,468 |  |  | (81,204) |
Balance as of February 1, 2025 | $ | (2,460) |  |  | $ | 11,252 |
The Company included €8.0 million ($8.3 million) and €7.1 million ($7.7 million) in other assets in the Company’s consolidated balance sheets related to its investment in certain private equity funds for fiscal 2025 and fiscal 2024, respectively. As permitted in accordance with authoritative guidance, the Company uses net asset value per share as a practical expedient to measure the fair value of this investment and has not included this investment in the fair value hierarchy as disclosed above. During fiscal 2025 and fiscal 2024, the Company funded contributions of €1.4 million ($1.5 million) and €5.0 million ($5.6 million), respectively, in this investment. During fiscal 2025, the Company recorded a €0.6 million ($0.6 million) unrealized loss in other income (expense) as a result of changes in the value of the private equity fund investment. During fiscal 2024, the Company recorded a €0.1 million ($0.1 million) unrealized loss in other income (expense) as a result of changes in the value of the private equity investment. During fiscal 2023, the Company recorded an immaterial unrealized gain in other income (expense) as a result of changes in the value of the private equity investment. During fiscal 2024, the Company also recorded a €4.4 million ($4.8 million) realized gain in other income (expense) resulted from a distribution of the private equity fund investment. As of February 1, 2025, the Company had an unfunded commitment to invest an additional €3.6 million ($3.7 million) in the private equity funds. The fair values of the Company’s debt instruments (see Note 9 - Borrowings and Finance Lease Obligations) are based on the amount of future cash flows associated with each instrument discounted using the Company’s incremental borrowing rate. As of February 1, 2025 and February 3, 2024, the carrying value of all financial instruments was not materially different from fair value, as the interest rates on the Company’s debt approximated rates currently available to the Company. The fair value of the Company’s Notes (see Note 11 - Convertible Senior Notes and Related Transactions) is determined based on inputs that are observable in the market and have been classified as Level 2 in the fair value hierarchy. The carrying amount of the Company’s remaining financial instruments, which principally include cash and cash equivalents, trade receivables, accounts payable and accrued expenses, approximates fair value due to the relatively short maturity of such instruments. Long-Lived Assets Impairment The Company recorded asset impairment charges of $6.6 million, $6.9 million and $9.5 million in fiscal 2025, fiscal 2024 and fiscal 2023, respectively, related primarily to certain retail locations in Europe and North America resulting from underperformance, expected store closures and other global economic conditions. Impairments of retail locations to property and equipment and operating lease ROU assets are summarized as (in thousands):
| Fair Value as of Remeasurement Date |  | Asset Impairment Charges
| Year Ended February 1, 2025
Operating lease ROU assets | $ | 46,570 |  |  | $ | 1,138 |
Property and equipment | $ | 438 |  |  | $ | 5,486 |
| Year Ended February 3, 2024
Operating lease ROU assets | $ | 42,267 |  |  | $ | 494 |
Property and equipment | $ | 784 |  |  | $ | 6,393 |
| Year Ended January 28, 2023
Operating lease ROU assets | $ | 35,254 |  |  | $ | 70 |
Property and equipment | $ | 33 |  |  | $ | 9,474 |
The Company’s impairment evaluations for property and equipment and operating lease ROU assets included testing of 250 and 405 retail locations during fiscal 2025 and fiscal 2024, respectively, which were deemed to have impairment indicators. During fiscal 2025 and fiscal 2024, the Company concluded that 125 and 101 retail locations, respectively, were determined to be impaired, as the carrying amounts of either or both the fixed assets and operating lease ROU assets exceeded their estimated fair values (determined based on discounted cash flows for property and equipment and estimates of market participant rents for operating lease ROU assets) at each of the respective dates. Refer to Note 1 - Description of the Business and Summary of Significant Accounting Policies and Practices for a description of other assumptions that management considers in estimating the future discounted cash flows. If actual results are not consistent with the assumptions and judgments used in estimating future cash flows and asset fair values, there may be additional exposure to future impairment losses that could be material to the Company’s results of operations.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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