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Discontinued Operations | 9 Months Ended
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Nov. 01, 2025
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations On March 11, 2025, the Company completed the sale of Creative Genius pursuant to an Interest Purchase Agreement (the “Agreement”) to sell one hundred percent (100%) of Creative Genius, which operates under the name Pura Vida Bracelets. The sale consummated on March 31, 2025. In connection with the transaction, the Company received total consideration of $3.5 million, consisting of a combination of cash consideration, subject to net working capital and net cash adjustments as well as contingent consideration. At closing, the Company received cash proceeds of $0.9 million. Cash proceeds totaled $1.0 million for the thirty-nine weeks ended November 1, 2025. In addition, the Company is entitled to receive contingent consideration with an estimated fair value of $2.5 million, based on the present value of expected future payments. The contingent consideration is calculated as 5% of total sales generated by the divested business, as operated by the buyer, net of customary shipping costs, during the earn-out period specified in the agreement. The earn-out period and related terms are consistent with customary provisions for transactions of this nature. The fair value of the contingent consideration was determined using a probability-weighted discounted cash flow analysis based on internal projections of the buyer’s expected future sales. The fair value measurement is classified as Level 3 within the fair value hierarchy due to the use of unobservable inputs. The Company will assess changes in the fair value of the contingent consideration at each reporting date, with any adjustments recognized in earnings in the period in which such changes are identified. The Company recorded a net loss on disposal of $15.2 million for the thirty-nine weeks ended November 1, 2025. The loss on sale is presented as part of results of the discontinued operations. The results of operations for the Pura Vida business is reported as discontinued operations in the Consolidated Statements of Operations for all periods presented in this Form 10-Q. This business was historically presented as its own reportable segment. Results of discontinued operations were as follows for the thirteen and thirty-nine weeks ended November 1, 2025 and November 2, 2024:
|  | Thirteen Weeks Ended |  | Thirty-Nine Weeks Ended
|  | November 1, 2025 |  | November 2, 2024 |  | November 1, 2025 |  | November 2, 2024
Net revenues |  | $ | — |  |  | $ | 10,095 |  |  | $ | 5,553 |  |  | $ | 39,569 |
Cost of sales |  | — |  |  | 4,904 |  |  | 2,167 |  |  | 16,856 |
Gross profit |  | — |  |  | 5,191 |  |  | 3,386 |  |  | 22,713 |
Selling, general, and administrative expenses |  | — |  |  | 7,517 |  |  | 3,244 |  |  | 25,381 |
Other income (expense), net (1) |  | — |  |  | 4 |  |  | (15,305) |  |  | 13 |
Operating income (loss) from discontinued operations |  | — |  |  | (2,322) |  |  | (15,163) |  |  | (2,655) |
Interest income, net |  | — |  |  | 98 |  |  | — |  |  | 355 |
Income (loss) from discontinued operations before income taxes |  | — |  |  | (2,224) |  |  | (15,163) |  |  | (2,300) |
Income tax (expense) benefit |  | — |  |  | (2,756) |  |  | — |  |  | (494) |
Income (loss) from discontinued operations |  | — |  |  | 532 |  |  | (15,163) |  |  | (1,806) |
(1) Includes $15.2 million loss on sale of discontinued operations recorded during the thirty-nine weeks ended November 1, 2025.
The Company provides certain transition services to support the divested business in accordance with the Interest Purchase Agreement. The assets and liabilities of the Pura Vida operations have been reflected as assets and liabilities of discontinued operations in the Consolidated Balance Sheet as of February 1, 2025. The assets and liabilities were as follows:
|  | November 1, 2025 |  | February 1, 2025
Assets of discontinued operations |  |  |  |
Cash and cash equivalents |  | $ | — |  |  | $ | 1,738 |
Accounts receivable, net |  | — |  |  | 995 |
Inventories |  | — |  |  | 18,578 |
Prepaid expenses and other current assets |  | — |  |  | 1,050 |
Total current assets of discontinued operations |  | $ | — |  |  | $ | 22,361 |
Operating right-of-use assets |  | — |  |  | 3,729 |
Property, plant, and equipment, net |  | — |  |  | 1,628 |
Other assets |  | — |  |  | 17 |
Total long-term assets of discontinued operations |  | $ | — |  |  | $ | 5,374 |
Liabilities of discontinued operations |  |  |  |
Accounts payable |  | $ | — |  |  | $ | 2,584 |
Accrued employment costs |  | — |  |  | 562 |
Short-term operating lease liabilities |  | — |  |  | 925 |
Other accrued liabilities |  | — |  |  | 1,952 |
Total current liabilities of discontinued operations |  | $ | — |  |  | $ | 6,023 |
Long-term operating lease liabilities |  | — |  |  | 3,388 |
Total long-term liabilities of discontinued operations |  | $ | — |  |  | $ | 3,388 |
The following table presents cash flows from operating and investing activities for discontinued operations for the thirty-nine weeks ended November 1, 2025 and November 2, 2024:
|  | Thirty-Nine Weeks Ended
|  | November 1, 2025 |  | November 2, 2024
Cash used in operating activities - discontinued operations |  | $ | (2,115) |  |  | $ | (469) |
Cash provided by (used in) investing activities - discontinued operations |  | 2 |  |  | (570) |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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