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Intangible Assets

9 Months Ended

Nov. 02, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

9. Intangible Assets

Our intangible assets with indefinite lives consist of: goodwill related to the Shenandoah, Sunset West and BOBO Intriguing Objects acquisitions; and trademarks and tradenames related to the acquisitions of Bradington-Young, Home Meridian and BOBO Intriguing Objects. Our intangible assets with definite lives are recorded in our Home Meridian and Domestic Upholstery segments. Details of our intangible assets are as follows:

		November 2, 2025								February 2, 2025
		Gross carrying amount				Impairment / Accumulated Amortization				Gross carrying amount				Impairment / Accumulated Amortization
Intangible assets with indefinite lives:
Goodwill
Domestic Upholstery - Shenandoah *			490				-				490				-
Domestic Upholstery - Sunset West *			-				-				14,462				-
All Other - BOBO Intriguing Objects			84				-				84				-
Goodwill			15,036				(14,462	)			15,036				-

Trademarks and Trade names *			2,019				(1,114	)			3,692

Intangible assets with definite lives:
Customer Relationships			23,601				(12,106	)			23,601				(10,565	)
Trademarks and Trade names			2,334				(1,195	)			2,334				(1,062	)

Intangible assets, net			27,954				(14,415	)			29,627				(11,627	)

*:

The amounts are net of impairment charges of $16.4 million related to Shenandoah goodwill, $14.5 million related to Sunset West goodwill, and $5.2 million related to certain trade names not related to PFC and SLF, of which $2.6 million were recorded in fiscal 2021 and $2.5 million were recorded in fiscal 2025.

During the third quarter of fiscal 2026, adverse economic conditions, including declines in our market value, as well as other changes in market dynamics, triggered an evaluation of our goodwill and intangible assets. We engaged an independent third-party valuation firm to assist in performing this assessment. The valuation procedures were performed with consideration of applicable accounting guidance, including Accounting Standards Codification (“ASC”) Topic 350, Goodwill and Other Intangible Assets and ASC Topic 820, Fair Value Measurement.

The determination of the fair value of our Home Meridian and Domestic Upholstery reporting units incorporated three valuation approaches: (i) the Discounted Cash Flow method, which utilized management’s cash flow projections and growth assumptions over an eight-year forecast period; (ii) the Guideline Public Company Method, which considered market data for comparable publicly traded companies; and (iii) the Guideline Transaction Method, which considered market multiples derived from transactions involving comparable businesses under varying risk profiles, geographies, and market conditions.

Based on the results of this valuation analysis, we recorded aggregate non-cash impairment charges of $15.6 million relating to continuing operations. These charges consisted of $14.5 million related to the impairment of Sunset West goodwill within the Domestic Upholstery segment, $558,000 for the trade name in the remaining HMI business classified in All Other, and $556,000 for the Bradington-Young trade name in the Domestic Upholstery segment.

Amortization expenses for intangible assets with definite lives were $623,000 and $687,000 for the third quarters of fiscal 2026 and 2025, respectively, and $1.9 million and $2.1 million for the nine-month periods of fiscal 2026 and 2025. For the remainder of fiscal 2026, amortization expense is expected to be approximately $544,000.