Income Taxes

6 Months Ended

Jul. 28, 2023

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 11. INCOME TAXES

Provision for Income Taxes

At the end of each quarter, the Company estimates its effective income tax rate pursuant to ASC 740. The rate for the period consists of the tax rate expected to be applied for the full year to ordinary income adjusted for any discrete items recorded in the period.

The Company recorded a tax expense at an overall effective tax rate of (32.4)% for the 13 weeks ended July 28, 2023 and a tax benefit at an overall effective tax rate of 29.8% for the 13 weeks ended July 29, 2022. The Company recorded a tax expense at an overall rate of (17.5)% for the 26 weeks ended July 28, 2023, and tax benefit at an overall effective tax rate of 36.9% for the 26 weeks ended July 29, 2022. The overall effective tax rate for the 13 and 26 weeks ended July 28, 2023 reflects a one-time tax expense related to the write-off of deferred tax benefits for stock-based compensation. The overall effective tax rate for the 26 weeks ended July 29, 2022 reflects a tax benefit as a result of stock-based compensation recorded in First Quarter 2022.