INCOME TAXES

3 Months Ended

May 04, 2025

Income Taxes [Abstract]

INCOME TAXES

INCOME TAXES

The effective income tax rates for the thirteen weeks ended May 4, 2025 and May 5, 2024 were 87.2% and 19.2%, respectively. The effective income tax rate for the thirteen weeks ended May 4, 2025 reflected a $(304.8) million income tax benefit recorded on $(349.6) million of pre-tax losses. The effective income tax rate for the thirteen weeks ended May 5, 2024 reflected a $36.0 million income tax expense recorded on $187.4 million of pre-tax income.

The effective income tax rate for the thirteen weeks ended May 4, 2025 was higher than the prior year period primarily due to the impact of the $479.5 million pre-tax noncash goodwill and other intangible asset impairment charges, which were non-deductible for tax purposes and resulted in a 70.5% increase to the Company’s effective income tax rate. The pre-tax goodwill and other intangible asset impairment charges were factored into the Company’s annualized effective income tax rate and will have a continued impact on the Company’s quarterly effective income tax rates for the remainder of 2025.