Income Taxes (Tables)

12 Months Ended

Jan. 28, 2023

Income Tax Disclosure [Abstract]

Income Tax Expense (Benefit)

The Company’s income tax expense (benefit) is computed based on the federal statutory rates and the state statutory rates, net of related federal benefit. The Company’s provision for income taxes consists of the following (in thousands):

	52 Weeks Ended January 28, 2023			52 Weeks Ended January 29, 2022		52 Weeks Ended January 30, 2021
Current tax expense (benefit):
Federal	$	(153	)	$	3,269	$	(10,124	)
State		696			74		52
Deferred tax expense (benefit):
Federal		—			—		—
State		—			—		1,525
	$	543		$	3,343	$	(8,547	)

Reconciliation of Income Tax Expense (Benefit) at the Statutory Federal Income Tax Rate

A reconciliation of income tax expense (benefit) at the statutory federal income tax rate to the amount provided is as follows (in thousands):

	52 Weeks Ended January 28, 2023			52 Weeks Ended January 29, 2022			52 Weeks Ended January 30, 2021
Tax at federal statutory rate	$	(9,272	)	$	5,327		$	1,699
State income taxes, net of federal benefit		(798	)		942			338
Tax credits		(79	)		(66	)		(90	)
Enactment of tax legislation		—			—			(12,276	)
Executive compensation		886			255			177
Stock based compensation programs		(1,296	)		(644	)		274
Valuation allowance		11,134			(2,494	)		1,292
Other		(32	)		23			39
Income tax expense (benefit)	$	543		$	3,343		$	(8,547	)

On March 27, 2020, the CARES Act was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits net operating loss carry backs to offset 100% of taxable income for taxable years beginning before 2021. The Company elected to carryback its 2019 net operating loss to offset the Company’s previous taxable income, thus generating a refund of $12.3 million in fiscal 2020.

Significant Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

	January 28, 2023			January 29, 2022
Deferred tax assets:
Operating lease liabilities	$	39,661		$	39,007
Accruals		1,327			1,956
Inventory valuation		346			563
State tax credit carryforwards		148			148
Federal and state net operating loss carryforwards		11,169			791
Impairment		1,321			992
Other		3,583			2,690
Total deferred tax assets		57,555			46,147
Valuation allowance for deferred tax assets		(14,690	)		(3,556	)
Net deferred tax assets		42,865			42,591
Deferred tax liabilities:
Property and equipment		(7,737	)		(9,431	)
Operating lease right-of-use assets		(34,435	)		(32,289	)
Prepaid assets		(693	)		(871	)
Total deferred tax liabilities		(42,865	)		(42,591	)
Net deferred tax assets	$	—		$	—