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Income Taxes
 12 Months Ended
Jan. 28, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

(15) Income Taxes

For the fiscal years ended January 28, 2023, January 29, 2022, and January 30, 2021, the income tax provision consisted of the following:

 

 

January 28,

 

 

January 29,

 

 

January 30,

 

 

2023

 

 

2022

 

 

2021

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

6,853

 

 

$

23,107

 

 

$

24,023

 

State

 

 

2,737

 

 

 

7,312

 

 

 

6,991

 

Total current

 

 

9,590

 

 

 

30,419

 

 

 

31,014

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

3,602

 

 

 

5,133

 

 

 

(390

)

State

 

 

158

 

 

 

217

 

 

 

(544

)

Total deferred

 

 

3,760

 

 

 

5,350

 

 

 

(934

)

Total income tax provision

 

$

13,350

 

 

$

35,769

 

 

$

30,080

 

 

The provision for income taxes differs from the amounts computed by applying the federal statutory rate as follows for the following periods:

 

January 28,

 

January 29,

 

January 30,

 

 

2023

 

 

2022

 

 

2021

 

Federal statutory rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State tax, net of federal benefit

 

 

4.1

 

 

 

4.1

 

 

 

4.1

 

Permanent items

 

 

1.1

 

 

 

0.1

 

 

 

(0.3

)

Tax Credits

 

 

(1.7

)

 

 

(0.6

)

 

 

(0.4

)

Other items

 

 

0.3

 

 

 

0.2

 

 

 

0.4

 

Effective income tax rate

 

 

24.8

%

 

 

24.8

%

 

 

24.8

%

 

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at January 28, 2023 and January 29, 2022, respectively, are presented below:

 

 

January 28,

 

 

January 29,

 

 

2023

 

 

2022

 

Deferred tax assets:

 

 

 

 

 

 

Accrued liabilities

 

$

928

 

 

$

1,521

 

Operating lease liability

 

 

76,792

 

 

 

69,565

 

Gift card liability

 

 

1,992

 

 

 

1,332

 

Goodwill

 

 

589

 

 

 

671

 

Intangible asset

 

 

781

 

 

 

927

 

Inventories

 

 

3,109

 

 

 

2,940

 

Sales return reserve

 

 

241

 

 

 

265

 

Stock-based compensation

 

 

993

 

 

 

1,082

 

Loyalty program

 

 

1,351

 

 

 

1,810

 

Total gross deferred tax assets

 

$

86,776

 

 

$

80,113

 

Deferred tax liabilities:

 

 

 

 

 

 

Depreciation

 

$

(27,742

)

 

$

(23,860

)

ROU asset

 

 

(67,417

)

 

 

(61,005

)

Prepaid expenses

 

 

(1,161

)

 

 

(1,027

)

Total gross deferred tax liabilities

 

 

(96,320

)

 

 

(85,892

)

Net deferred tax asset

 

$

(9,544

)

 

$

(5,779

)

 

Deferred tax assets have resulted primarily from the Company’s future deductible temporary differences. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company’s ability to realize its deferred tax assets depends upon the generation of sufficient future taxable income.

Management evaluates the realizability of the deferred tax assets and the need for additional valuation allowances quarterly. At January 28, 2023, based on current facts and circumstances, management believes that it is more likely than not that the Company will realize benefit for its deferred tax assets.

As of January 28, 2023, the Company had no unrecognized tax benefits. The Company does not anticipate that unrecognized tax benefits will significantly increase or decrease within 12 months of the reporting date. Federal and state tax years that remain subject to examination are periods ended February 1, 2020 through January 29, 2022.

The Company’s policy is to accrue interest expense, and penalties as appropriate, on estimated unrecognized tax benefits as a charge to interest expense in the consolidated statements of income. No interest or penalties were accrued for fiscal years 2022, 2021 or 2020.