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INCOME TAXES (Tables)

12 Months Ended

Jan. 31, 2026

Schedule of Loss Before Taxes, Domestic and Foreign

The components of Loss before provision (benefit) for income taxes were as follows:


	Fiscal Years Ended
	January 31, 2026		February 1, 2025		February 3, 2024
	(in thousands)
Domestic	$	(96,584)	$	(58,830)	$	(156,703)
Foreign	6,299		9,382		42,905
Total loss before provision (benefit) for income taxes	$	(90,285)	$	(49,448)	$	(113,798)

Schedule of Components of Provision (Benefit) for Income Taxes

The components of the Company’s Provision (benefit) for income taxes consisted of the following:


	Fiscal Years Ended
	January 31, 2026			February 1, 2025			February 3, 2024

	(in thousands)
Current:
Federal	$	(4,127)		$	4,812		$	(1,239)
State and local	(286)			1,120			249
Foreign	2,972			2,439			4,758
Total current provision (benefit)	(1,441)			8,371			3,768
Deferred:
Federal	(643)			—			21,125
State and local	62			—			13,019
Foreign	—			—			2,831
Total deferred provision (benefit)	(581)			—			36,975
Total provision (benefit) for income taxes	$	(2,022)		$	8,371		$	40,743
Effective tax rate	2.2		%	(16.9)		%	(35.8)		%

Schedule of Reconciliation of Tax Provision (Benefit)

A reconciliation between the calculated tax benefit based on the U.S. federal statutory rate of 21.0% and the effective tax rate for Fiscal 2025 (in accordance with ASU 2023-09) is as follows:


	Fiscal Year Ended
	January 31, 2026
	(in thousands)		%
Calculated income tax benefit at U.S. federal statutory rate	$	(18,960)	21.0	%
State and local income taxes, net of federal income tax effect (1)	(163)		0.2	%
Foreign Tax Effects
Hong Kong
Foreign tax rate differential	(686)		0.8	%
Income excluded from Hong Kong tax base	(1,430)		1.6	%
Pillar Two	1,489		(1.6)	%
Other	(400)		0.4	%
Canada
Foreign tax rate differential	(483)		0.5	%
Changes in valuation allowance	2,368		(2.6)	%
Other	507		(0.6)	%
Other foreign jurisdictions	480		(0.5)	%


Effects of Cross-Border Tax Laws	(237)		0.3	%
Tax Credits	522		(0.6)	%
Changes in valuation allowance	16,433		(18.2)	%
Changes in Unrecognized tax benefits	(1,825)		2.0	%
Other	363		(0.5)	%
Total benefit for income taxes	$	(2,022)	2.2	%

____________________________________________

(1) State and local tax expense was not material in Fiscal 2025.

The Organization for Economic Cooperation and Development (“OECD”) introduced a global minimum corporate tax rate of 15% under its Pillar Two initiative (“Pillar Two”), which became effective for tax years beginning in January 2024. Although the U.S. has not implemented the Pillar Two rules, other regions where we conduct business, primarily Hong Kong and Canada, have enacted such legislation. The effective income tax rate for Fiscal 2025 includes the global minimum tax provision of OECD Pillar Two for Hong Kong.

A reconciliation between the calculated tax provision (benefit) based on the U.S. federal statutory rate of 21.0% and the effective tax rate for Fiscal 2024 and Fiscal 2023 (as previously reported in accordance with guidance prior to the adoption of ASU 2023-09) is as follows:


	Fiscal Years Ended
	February 1, 2025		%		February 3, 2024		%
	(in thousands)
Calculated income tax benefit at U.S. federal statutory rate	$	(10,384)	21.0	%	$	(23,898)	21.0	%
State and local income taxes, net of federal benefit	(2,145)		4.3	%	(6,901)		6.1	%
Foreign tax rate differential (1)	(3,082)		6.2	%	(4,937)		4.3	%
Non-deductible expenses	2,654		(5.4)	%	(1,488)		1.3	%
Excess tax detriment related to stock compensation	889		(1.8)	%	558		(0.5)	%
Unrecognized tax benefits	104		(0.2)	%	3,127		(2.7)	%
Change in valuation allowance	18,251		(36.9)	%	68,625		(60.3)	%
Global intangible low-taxed income	251		(0.5)	%	9,505		(8.4)	%
Federal tax credits	(291)		0.6	%	(3,242)		2.8	%
Other	2,124		(4.2)	%	(606)		0.6	%
Total provision for income taxes	$	8,371	(16.9)	%	$	40,743	(35.8)	%

____________________________________________

(1) The Company has substantial operations in Hong Kong, which has a lower statutory income tax rate as compared to the U.S. The Company’s foreign effective tax rate for Fiscal 2024 and Fiscal 2023 was 17.5%, and 11.6%, respectively. This rate will fluctuate from year to year in response to changes in the mix of income by country, as well as changes in tax laws in foreign jurisdictions.

Schedule of Income Taxes Paid (Refunded)

Income taxes paid (refunded) in Fiscal 2025 (presented in accordance with ASU 2023-09) consisted of:


	Fiscal Year Ended
	January 31, 2026
	(in thousands)
Domestic - federal (1)	$	13,986
Domestic - state and local	(331)
Hong Kong	1,786
Other foreign	582
Total income taxes paid, net of refunds	$	16,023

____________________________________________

(1) Includes the Tax Cuts and Jobs Act transition tax payments.

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences which give rise to deferred tax assets and liabilities were as follows:


	January 31, 2026		February 1, 2025
	(in thousands)









Deferred tax assets:
Operating lease liabilities	$	45,641	$	45,209
Capitalized research and development, net	18,420		22,193
Net operating loss carryforward	31,954		13,578
Reserves	12,143		10,295
Interest expense carryforward	12,341		16,853
Tax credits	5,306		5,616
Inventory	21,422		10,299
Tradenames and customer databases, net	7,984		9,407
Charitable contributions	1,177		815
Stock-based compensation	487		843
Subtotal	156,875		135,108
Less: valuation allowance	(109,060)		(88,148)
Total deferred tax assets	47,815		46,960
Deferred tax liabilities:
Right-of-use assets	(42,325)		(41,460)
Property and equipment, net	(1,911)		(3,530)
Prepaid expenses	(2,607)		(998)
Foreign and state tax on unremitted earnings	(973)		(1,554)
Total deferred tax liabilities	(47,816)		(47,542)

Total deferred tax assets (liabilities), net	$	(1)	$	(582)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the gross amounts of unrecognized tax benefits, excluding accrued interest and penalties, is as follows:


	Fiscal Years Ended
	January 31, 2026		February 1, 2025
	(in thousands)
Beginning Balance	$	6,874	$	6,990
Additions for current year tax positions	215		636
Additions for prior year tax positions	1		35
Reductions for prior year tax positions	(341)		(661)
Reductions related to settlements with taxing authorities	—		(70)
Reductions due to a lapse of the applicable statute of limitations	(1,455)		(56)

Ending Balance	$	5,294	$	6,874