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Income Taxes (Tables)

12 Months Ended

Jan. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) Before Income Taxes

The Company’s income (loss) before income taxes in the United States and in foreign jurisdictions is as follows:

(in thousands)		Fiscal 2024				Fiscal 2023				Fiscal 2022
Income (loss) before income taxes
United States		$	17,535			$	(126,745	)		$	4,646
Foreign			(7,039	)			(5,072	)			(19,325	)
Total income (loss) before income taxes		$	10,496			$	(131,817	)		$	(14,679	)

Schedule of Components of the Provision for (Benefit from) Income Taxes

The components of the provision for (benefit from) income taxes are as follows:

(in thousands)		Fiscal 2024				Fiscal 2023				Fiscal 2022
United States		$	4,065			$	(1,482	)		$	(3,258	)
Foreign			198				349				1,109
Total provision (benefit)		$	4,263			$	(1,133	)		$	(2,149	)

(in thousands)		Fiscal 2024				Fiscal 2023				Fiscal 2022
Current:
Federal		$	(17	)		$	(3,092	)		$	(3,928	)
State			700				(192	)			(273	)
Foreign			187				338				1,125
Total current			870				(2,946	)			(3,076	)
Deferred:
Federal			2,646				(316	)			682
State			736				2,118				261
Foreign			11				11				(16	)
Total deferred			3,393				1,813				927
Total provision (benefit)		$	4,263			$	(1,133	)		$	(2,149	)

Reconciliation of the Effective Income Tax Rate

A reconciliation of the statutory federal income tax rate to the effective income tax rate is as follows:

		Fiscal 2024				Fiscal 2023				Fiscal 2022
Tax at statutory federal tax rate			21.0	%			21.0	%			21.0	%
State income taxes, net of federal tax benefit			10.8	%			(1.1	)%			0.1	%
Foreign differential			(19.1	)%			2.1	%			27.2	%
Permanent differences			7.2	%			(0.8	)%			(3.4	)%
Uncertain tax benefits			(3.0	)%			0.1	%			1.1	%
Change in foreign valuation allowance			19.2	%			(2.2	)%			(32.4	)%
Goodwill impairment			—	%			(17.0	)%			—	%
Other, net			4.5	%			(1.2	)%			1.0	%
Total			40.6	%			0.9	%			14.6	%

Summary of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consisted of the following:

(in thousands)		January 31, 2025				February 2, 2024
Deferred tax assets
Deferred revenue		$	8,079			$	7,388
Legal accruals			1,183				1,418
Deferred compensation			5,275				6,100
Deferred interest			8,775				640
Reserve for returns			2,208				2,867
Inventory			3,210				4,510
CTA investment in foreign subsidiaries			4,234				4,271
Operating lease liabilities			6,089				7,017
Other			1,127				1,369
Net operating loss carryforward			17,618				26,544
Total deferred tax assets			57,798				62,124
Less valuation allowance			(18,058	)			(16,292	)
Net deferred tax assets		$	39,740			$	45,832
Deferred tax liabilities
Intangible assets		$	61,919			$	61,785
LIFO reserve			18,228				19,137
Property and equipment			4,509				5,662
Operating lease right-of-use assets			5,066				5,709
Catalog advertising			1,468				1,559
Total deferred tax liabilities			91,190				93,852
Net deferred tax liability		$	51,450			$	48,020

As of January 31, 2025, the Company had $117.5 million of federal and state net operating loss (“NOL”) and interest expense carryforwards (generating a $12.2 million deferred tax asset) available to offset future taxable income. The federal carryforwards have an indefinite life. The state NOL carryforwards generally expire between 2025 and 2044 with certain state NOLs and interest expense carryforwards generated after 2017 having indefinite lives. The Company’s foreign subsidiaries had $49.3 million of NOL carryforwards (generating a $14.1 million deferred tax asset) available to offset future taxable income. These foreign NOLs can be carried forward indefinitely, however, a valuation allowance was established since the future utilization of these NOLs is uncertain.

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending gross amount of unrecognized tax benefits (“UTBs”) is as follows:

(in thousands)		Fiscal 2024				Fiscal 2023				Fiscal 2022
Gross UTBs balance at beginning of period		$	1,141			$	1,297			$	1,477
Tax positions related to the prior periods - gross    increases (decreases)			7,980				(156	)			(180	)
Settlements			(123	)			—				—
Gross UTBs balance at end of period		$	8,998			$	1,141			$	1,297

As of January 31, 2025, the Company had gross UTBs of $9.0 million. Of this amount, $0.8 million would, if recognized, impact its effective tax rate. The remaining liability relates to tax positions for which there are offsetting tax benefits, or the uncertainty was related only to timing. The Company does not expect that UTBs will fluctuate significantly in the next 12 months for tax audit settlements and the expiration of the statute of limitations for certain jurisdictions. Tax years 2021 through 2025 remain open for examination by the Internal Revenue Service as well as various state and foreign jurisdictions.

The Company classifies interest expense and penalties related to UTBs and interest income on tax overpayments as components of income tax expense. As of January 31, 2025, the total amount of interest expense and penalties

recognized on the balance sheet was $0.5 million ($0.4 million net of federal benefit). As of February 2, 2024, the total amount of interest and penalties recognized on the balance sheet was $0.6 million ($0.5 million net of federal benefit). The total amount of net interest expense recognized in the Consolidated Statements of Operations was insignificant for all periods presented. The Company files income tax returns in both the United States and various foreign jurisdictions.

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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