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INCOME TAXES (Tables) | 12 Months Ended
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Feb. 03, 2024
Income Tax Disclosure [Abstract] |
Schedule of Income (Loss) Before Taxes, Domestic and Foreign | The components of Income (loss) before provision (benefit) for income taxes were as follows:
|  | Fiscal Years Ended
|  | February 3, 2024 |  | January 28, 2023 |  | January 29, 2022
|  | (in thousands)
Domestic |  | $ | (156,703) |  |  | $ | (61,065) |  |  | $ | 198,173 |
Foreign |  | 42,905 |  |  | 46,303 |  |  | 58,857 |
Total income (loss) before provision (benefit) for income taxes |  | $ | (113,798) |  |  | $ | (14,762) |  |  | $ | 257,030 |
Schedule of Components of Provision (Benefit) for Income Taxes | The components of the Company’s Provision (benefit) for income taxes consisted of the following:
|  | Fiscal Years Ended
|  | February 3, 2024 |  | January 28, 2023 |  | January 29, 2022
|  | (in thousands)
Current: |  |  |  |  |  |
Federal |  | $ | (1,239) |  | $ | 4,172 |  | $ | 29,406
State and local |  | 249 |  | (1,193) |  | 7,389
Foreign |  | 4,758 |  | (2,842) |  | 7,218
|  | 3,768 |  | 137 |  | 44,013
Deferred: |  |  |  |  |  |
Federal |  | 21,125 |  | (12,030) |  | 14,517
State and local |  | 13,019 |  | (2,712) |  | 8,780
Foreign |  | 2,831 |  | 981 |  | 2,549
|  | 36,975 |  | (13,761) |  | 25,846
Total provision (benefit) for income taxes |  | $ | 40,743 |  | $ | (13,624) |  | $ | 69,859
Effective tax rate |  | (35.8) | % |  | 92.3 | % |  | 27.2 | %
Schedule of Reconciliation of Tax Provision (Benefit) | A reconciliation between the calculated tax provision (benefit) based on the U.S. federal statutory rate of 21.0% and the effective tax rate for Fiscal 2023, Fiscal 2022, and Fiscal 2021 follows:
|  | Fiscal Years Ended
|  | February 3, 2024 |  | January 28, 2023 |  | January 29, 2022
|  | (in thousands)
Calculated income tax provision (benefit) at U.S. federal statutory rate |  | $ | (23,898) |  |  | $ | (3,100) |  |  | $ | 53,976 |
State and local income taxes, net of federal benefit |  | (6,901) |  |  | (3,812) |  |  | 14,394 |
Foreign tax rate differential (1) |  | (4,937) |  |  | (5,498) |  |  | (3,598) |
Non-deductible expenses |  | (1,488) |  |  | 3,696 |  |  | 7,301 |
Excess tax detriment (benefit) related to stock compensation |  | 558 |  |  | 816 |  |  | (293) |
Unrecognized tax benefits |  | 3,127 |  |  | (5,324) |  |  | 1,050 |
Change in valuation allowance |  | 68,625 |  |  | 163 |  |  | 358 |
Global intangible low-taxed income |  | 9,505 |  |  | 1,760 |  |  | 1,476 |
Federal tax credits |  | (3,242) |  |  | (2,934) |  |  | (2,882) |
Other |  | (606) |  |  | 609 |  |  | (1,923) |
Total provision (benefit) for income taxes |  | $ | 40,743 |  |  | $ | (13,624) |  |  | $ | 69,859 |
____________________________________________ (1) The Company has substantial operations in Hong Kong, which has a lower statutory income tax rate as compared to the U.S. The Company’s foreign effective tax rate for Fiscal 2023, Fiscal 2022, and Fiscal 2021 was 11.6%, 9.8%, and 16.6%, respectively. This rate will fluctuate from year to year in response to changes in the mix of income by country, as well as changes in tax laws in foreign jurisdictions.
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences which give rise to deferred tax assets and liabilities were as follows:
|  | February 3, 2024 |  | January 28, 2023
|  | (in thousands)
Deferred tax assets: |  |  |  |
Operating lease liabilities |  | $ | 48,122 |  |  | $ | 48,079 |
Capitalized research and development, net |  | 23,653 |  |  | 17,856 |
Net operating loss carryforward |  | 13,704 |  |  | 3,453 |
Reserves |  | 10,167 |  |  | 12,038 |
Interest expense carryforward |  | 9,980 |  |  | 1,106 |
Tax credits |  | 6,630 |  |  | 2,727 |
Inventory |  | 3,333 |  |  | 4,612 |
Tradenames and customer databases, net |  | 3,304 |  |  | — |
Charitable contributions |  | 1,084 |  |  | — |
Stock-based compensation |  | 924 |  |  | 2,461 |
Subtotal |  | 120,901 |  |  | 92,332 |
Less: valuation allowance |  | (69,898) |  |  | (1,273) |
Total deferred tax assets |  | 51,003 |  |  | 91,059 |
Deferred tax liabilities: |  |  |  |
Right-of-use assets |  | (44,844) |  |  | (43,576) |
Property and equipment, net |  | (3,149) |  |  | (2,407) |
Prepaid expenses |  | (2,038) |  |  | (3,704) |
Foreign and state tax on unremitted earnings |  | (1,554) |  |  | (1,554) |
Tradenames and customer databases, net |  | — |  |  | (3,202) |
Total deferred tax liabilities |  | (51,585) |  |  | (54,443) |
Total deferred tax assets (liabilities), net |  | $ | (582) |  |  | $ | 36,616 |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible | A reconciliation of the gross amounts of unrecognized tax benefits, excluding accrued interest and penalties, is as follows:
|  | Fiscal Years Ended
|  | February 3, 2024 |  | January 28, 2023
|  | (in thousands)
Beginning Balance |  | $ | 3,626 |  |  | $ | 8,937 |
Additions for current year tax positions |  | 1,756 |  |  | 750 |
Additions for prior year tax positions |  | 1,608 |  |  | 261 |
Reductions for prior year tax positions |  | — |  |  | (6,322) |
Ending Balance |  | $ | 6,990 |  |  | $ | 3,626 |

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