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Leases | 12 Months Ended
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Feb. 01, 2025
Leases [Abstract] |
Leases | Note 12. Leases The Company determines if a contract contains a lease at inception. The Company has operating leases for real estate (primarily retail stores, storage, and office spaces) some of which have initial terms of 10 years, and in many instances can be extended for an additional term, while certain recent leases are subject to shorter terms as a result of the implementation of the strategy to pursue shorter lease terms when evaluating certain markets. The Company will not include renewal options in the underlying lease term unless the Company is reasonably certain to exercise the renewal option. Substantially all of the Company's leases require a fixed annual rent, and most require the payment of additional rent if store sales exceed a negotiated amount. These percentage rent expenses are considered as variable lease costs and are recognized in the consolidated financial statements when incurred. In addition, the Company's real estate leases may also require additional payments for real estate taxes and other occupancy-related costs which it considers as non-lease components. ROU assets and operating lease liabilities are recognized based upon the present value of the future lease payments over the lease term. As the Company's leases do not provide an implicit borrowing rate, the Company uses an estimated incremental borrowing rate based upon a combination of market-based factors, such as market quoted forward yield curves and company specific factors, such as the Company's credit rating, lease size and duration to calculate the present value. The Company does not have any finance leases. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The weighted-average remaining lease term and weighted-average discount rate for our operating leases are 7 years and 7.15% as of February 1, 2025 and 6.3 years and 7.17% as of February 3, 2024. Total lease cost is included in SG&A expense in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss) and is recorded net of immaterial sublease income. Some leases have a non-cancelable lease term of less than one year and therefore, the Company has elected to exclude these short-term leases from the ROU asset and lease liabilities. Short term lease costs were immaterial for the fiscal years ended February 1, 2025 and February 3, 2024. The Company's lease cost is comprised of the following:
|  | Fiscal Year |
(in thousands) |  | 2024 |  |  | 2023 |
Operating lease cost |  | $ | 22,372 |  |  | $ | 18,482 |
Variable operating lease cost |  |  | 270 |  |  |  | 390 |
Sublease income |  |  | (289 | ) |  |  | — |
Total lease cost |  | $ | 22,353 |  |  | $ | 18,872 |
The operating lease cost for fiscal 2023 included a benefit of $779 for the correction of an error recorded within SG&A expenses related to a lease modification that occurred during fiscal 2022 for a Vince retail store, leading to an overstatement of the ROU assets and an overstatement of the lease obligations in fiscal 2022. Supplemental cash flow and non-cash information related to leases is as follows:
|  | Fiscal Year |
(in thousands) |  | 2024 |  |  | 2023 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 24,080 |  |  | $ | 24,766 |
Right-of-use assets obtained in exchange for operating lease liabilities |  |  | 36,791 |  |  |  | 22,972 |
As of February 1, 2025, the future maturity of lease liabilities are as follows:
|  |  |  | February 1, |
(in thousands) |  |  |  | 2025 |
Fiscal 2025 |  |  |  | $ | 22,466 |
Fiscal 2026 |  |  |  |  | 20,155 |
Fiscal 2027 |  |  |  |  | 17,004 |
Fiscal 2028 |  |  |  |  | 16,610 |
Fiscal 2029 |  |  |  |  | 15,832 |
Thereafter |  |  |  |  | 39,608 |
Total lease payments |  |  |  |  | 131,675 |
Less: Imputed interest |  |  |  |  | (28,470 | )
Total operating lease liabilities |  |  |  | $ | 103,205 |
During fiscal 2024, the Company entered into a sublease with a third party for the 18th Floor of the Company’s corporate offices in New York, NY, for a period of three years with no option to renew. In accordance with ASC Topic 842, the Company treated the sublease as a separate lease, as the Company was not relieved of the primary obligation under the original lease. The Company continues to account for the corporate office lease as a lessee and in the same manner as prior to the commencement date of the sublease. The Company accounted for the sublease as a lessor of the lease. The sublease was classified as an operating lease, as it did not meet the criteria of a sales-type or direct financing lease. As of February 1, 2025, future minimum tenant operating lease payments remaining under this sublease were approximately $2,500, with a remaining sublease term of 2.7 years. The operating lease payments do not include any renewal options as such leases are not reasonably certain of being renewed as of February 1, 2025 and do not include $6,521 legally binding minimum lease payments for leases signed but not yet commenced.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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