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Income Taxes
 12 Months Ended
Feb. 03, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

(13) Income Taxes

For the fiscal years ended February 3, 2024, January 28, 2023, and January 29, 2022, the income tax provision consisted of the following:

 

 

February 3,

 

 

January 28,

 

 

January 29,

 

 

2024

 

 

2023

 

 

2022

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

203

 

 

$

6,853

 

 

$

23,107

 

State

 

 

643

 

 

 

2,737

 

 

 

7,312

 

Total current

 

 

846

 

 

 

9,590

 

 

 

30,419

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

(8,251

)

 

 

3,602

 

 

 

5,133

 

State

 

 

(1,804

)

 

 

158

 

 

 

217

 

Total deferred

 

 

(10,055

)

 

 

3,760

 

 

 

5,350

 

Total income tax provision

 

$

(9,209

)

 

$

13,350

 

 

$

35,769

 

 

 

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

 

February 3,

 

January 28,

 

January 29,

 

 

2024

 

 

2023

 

 

2022

 

Federal statutory rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State tax, net of federal benefit

 

 

4.1

 

 

 

4.1

 

 

 

4.1

 

Permanent items

 

 

(2.4

)

 

 

1.1

 

 

 

0.1

 

Tax Credits

 

 

2.4

 

 

 

(1.7

)

 

 

(0.6

)

Other items

 

 

(1.0

)

 

 

0.3

 

 

 

0.2

 

Effective income tax rate

 

 

24.1

%

 

 

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 February 3, 2024 and January 28, 2023, respectively, are presented below:

 

 

February 3,

 

 

January 28,

 

 

2024

 

 

2023

 

Deferred tax assets:

 

 

 

 

 

 

Accrued liabilities

 

$

555

 

 

$

928

 

Operating lease liability

 

 

89,279

 

 

 

76,792

 

Gift card liability

 

 

2,622

 

 

 

1,992

 

Goodwill

 

 

507

 

 

 

589

 

Intangible asset

 

 

635

 

 

 

781

 

Inventories

 

 

3,322

 

 

 

3,109

 

Sales return reserve

 

 

205

 

 

 

241

 

Stock-based compensation

 

 

778

 

 

 

993

 

Tax credits

 

 

791

 

 

 

—

 

Net operating losses

 

 

15,474

 

 

 

—

 

Loyalty program

 

 

1,089

 

 

 

1,351

 

Total gross deferred tax assets

 

$

115,257

 

 

$

86,776

 

Deferred tax liabilities:

 

 

 

 

 

 

Depreciation

 

$

(35,872

)

 

$

(27,742

)

ROU asset

 

 

(77,654

)

 

 

(67,417

)

Prepaid expenses

 

 

(1,226

)

 

 

(1,161

)

Total gross deferred tax liabilities

 

 

(114,752

)

 

 

(96,320

)

Net deferred tax asset

 

$

505

 

 

$

(9,544

)

 

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 February 3, 2024, 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 February 3, 2024, 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 January 30, 2021 through January 28, 2023.

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 operations. No interest or penalties were accrued for fiscal years 2023, 2022 or 2021.