Note 12 - Impairment

3 Months Ended

May 03, 2025

Notes to Financial Statements

Asset Impairment Charges [Text Block]

Note 12 – Impairment

The Company evaluates the recoverability of the carrying amounts of long-lived assets when events or changes in circumstances dictate that their carrying values may not be recoverable. This review includes the evaluation of individual under-performing retail stores and the assessment of the recoverability of the carrying value of the assets related to the stores. Future cash flows are projected for the remaining lease life. If the estimated future cash flows are less than the carrying value of the assets, the Company records an impairment charge equal to the difference between the assets’ fair value and carrying value. The fair value is estimated using a discounted cash flow approach, considering such factors as future sales levels, gross margins, changes in rent and other expenses as well as the overall operating environment specific to that store. The amount of the impairment charge is allocated proportionately to all assets in the asset group with no asset written down below its individual fair value.

The table below sets forth impairment information (in thousands, except store counts) for the periods indicated:

	13-Week Period Ended
	May 3, 2025		May 4, 2024
Impairment of leasehold improvements, fixtures and equipment at stores	$	20	$	11
Number of stores with leasehold improvements, fixtures and equipment impairment		1		—