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Cost-Savings Initiative
 6 Months Ended
Jul. 31, 2025
Restructuring and Related Activities [Abstract]  
Cost-Savings Initiative

NOTE 3 - COST-SAVINGS INITIATIVE

 

During fiscal year 2025, in light of the ongoing challenging consumer-spending environment, the Company committed to a cost-savings initiative to reduce operating expenses through headcount reductions, bringing them more in line with sales.

 

During the three and six months ended July 31, 2025, the Company recorded $0.9 million and $1.5 million, respectively, in accruals for severance and employee-related charges which are included in Selling, general and administrative in the Consolidated Statements of Operations. During the second half of fiscal year 2025, the Company recorded $4.6 million in accruals for severance and employee-related charges and early lease termination charges which were included in Selling, general and administrative in the Consolidated Statements of Operations for the year ended January 31, 2025. The amounts recorded in fiscal year 2026 and 2025 are included in both the United States and International locations in the Watch and Accessory segment.

Of the total amount recorded, $1.3 million related to severance and employee-related charges was paid during fiscal year 2025, and $2.0 million related to severance and employee-related charges and $0.5 million of early lease termination related fees and costs were paid/utilized during the first six months of fiscal year 2026. Of the remaining amount, $2.0 million is included in Accrued payroll and benefits in the Consolidated Balance Sheet at July 31, 2025. The Company expects the remaining severance and employee-related expenses to be paid during the remainder of fiscal year 2026.