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Income Taxes
 6 Months Ended
Aug. 01, 2025
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 30.5% and 33.4% for the 13 weeks ended August 1, 2025 and August 2, 2024, respectively. The Company recorded a tax benefit at an overall rate of 29.4% and 26.4% for the 26 weeks ended August 1, 2025 and August 2, 2024. The overall effective tax rate for the 13 and 26 weeks ended August 1, 2025, varies from the U.S. statutory rate of 21% as a result of state taxes and non-deductible expenses. The overall effective tax rate for the 13 and 26 weeks ended August 2, 2024, varies from the U.S. statutory rate of 21% as a result of state taxes, non-deductible expenses, and the impact of stock-based compensation.

On July 4, 2025 the One Big Beautiful Bill Act (H.R. 1)(“the OBBBA”) was signed into law. The OBBBA contains various changes to corporate taxation with varying effective dates, including (i) the reinstatement of 100% bonus depreciation, (ii) modifications

to business interest deduction limitations, and (iii) taxation of foreign entities. The legislation did not have a material impact on the Company’s financial statements for the 13 and 26 weeks ended August 1, 2025.