Related Party Transactions

3 Months Ended

May 04, 2024

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

SCHOTTENSTEIN AFFILIATES

We have transactions with entities owned or controlled by Jay L. Schottenstein, the executive chairman of our Board, and members of his family (the "Schottenstein Affiliates"). As of May 4, 2024, the Schottenstein Affiliates beneficially owned approximately 25% of the Company's outstanding common shares, representing approximately 61% of the combined voting power of the Company, consisting of, in the aggregate, 7.0 million Class A common shares and 7.7 million Class B common shares. The following summarizes the related party transactions with the Schottenstein Affiliates for the relevant periods:

Leases- We lease certain store and office locations that are owned by the Schottenstein Affiliates. For the three months ended May 4, 2024 and April 29, 2023, we recorded rent expense from the leases with Schottenstein Affiliates of $2.0 million and $1.9 million, respectively. As of May 4, 2024, February 3, 2024, and April 29, 2023, we had related party current operating lease liabilities of $4.0 million, $5.6 million, and $5.2 million, respectively, and non-current operating lease liabilities of $18.9 million, $18.5 million, and $13.0 million, respectively.

Other Purchases and Services- For both the three months ended May 4, 2024 and April 29, 2023, we had other purchases and services we incurred from the Schottenstein Affiliates of $0.6 million, respectively.

Due to Related Parties- Amounts due to the Schottenstein Affiliates, other than operating lease liabilities, were immaterial for all periods presented.

EQUITY METHOD INVESTMENTS

ABG-Camuto- We have a 40.0% ownership interest in ABG-Camuto. We are party to a licensing agreement with ABG-Camuto, pursuant to which we pay royalties on the net sales of the brands owned by ABG-Camuto, subject to guaranteed minimums. For the three months ended May 4, 2024 and April 29, 2023, we recorded royalty expense for amounts paid to ABG-Camuto of $4.8 million and $4.5 million, respectively.

Le Tigre- We have a 33.3% ownership interest in Le Tigre. We are party to a license agreement with Le Tigre, pursuant to which we pay royalties on the net sales of the Le Tigre brand, subject to guaranteed minimums. Activity with Le Tigre was immaterial for all periods presented.