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Income Taxes
 9 Months Ended
Nov. 01, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 10. INCOME TAXES

 

Provision for Income Taxes

 

At the end of each quarter, the Company estimates its effective income tax rate pursuant to ASC 740. The rate for the period consists of the tax rate expected to be applied for the full year to ordinary income adjusted for any discrete items recorded in the period.

The Company recorded a tax benefit at an overall effective tax rate of 55.4% for the 13 weeks ended November 1, 2024, and a tax benefit at an overall effective tax rate of 0.4% for the 13 weeks ended October 27, 2023. The Company recorded a tax benefit at an overall rate of 28.7% for the 39 weeks ended November 1, 2024, and a tax expense at an overall rate of (0.8)% for the 39 weeks ended October 27, 2023. The overall effective tax rates for the 13 and 39 weeks ended November 1, 2024, vary from the U.S. federal statutory rate of 21% as a result of state taxes, non-deductible expenses, and the impacts of certain state audit closures and stock-based compensation adjustments. The overall effective tax rate for the 13 and 39 weeks ended October 27, 2023, reflects the impacts resulting from the impairment of goodwill recorded in the 13 weeks ended October 27, 2023.