Income Taxes

3 Months Ended

May 04, 2019

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The provision for income taxes is based on a current estimate of the annual effective tax rate and is adjusted as necessary for quarterly events. Our effective income tax rate may fluctuate from quarter to quarter as a result of a variety of factors, including changes in our assessment of certain tax contingencies, valuation allowances, changes in tax law, outcomes of administrative audits, the impact of discrete items and the mix of earnings.

For the thirteen weeks ended May 4, 2019 and May 5, 2018, the Company’s effective tax rate was 62.7% and 27.9%, respectively. The effective tax rates of 62.7% and 27.9% included the recognition of $2.0 million and $1.1 million, respectively, of additional tax expense related to the accounting for employee share-based awards. The increase in the first quarter tax rate over the prior year was primarily the result of lower pre-tax income and the additional tax expense related to employee share-based awards.