Retail Fleet Optimization Plan

12 Months Ended

Feb. 01, 2020

Property, Plant and Equipment [Abstract]

Retail Fleet Optimization Plan

RETAIL FLEET OPTIMIZATION PLAN:

In the fourth quarter of fiscal 2018, the Company announced a three-year retail fleet optimization plan to rebalance the mix between our physical store presence and our digital network. This initiative is part of the Company's efforts to better capitalize on its omnichannel platform, reduce costs, and improve our profitability and return on invested capital. In fiscal 2019, the Company recorded pre-tax accelerated depreciation charges within COGS of $11.1 million associated with this retail fleet optimization plan. In fiscal 2018, the Company recorded pre-tax accelerated depreciation and impairment charges within COGS of $1.3 million and $9.4 million, respectively.

A summary of the retail fleet optimization charges is presented in the table below:

	Fiscal 2019		Fiscal 2018
	(in thousands)
Accelerated Depreciation (1) (2)	$	11,084	$	1,268
Impairment (1)	—		9,434
Retail Fleet Optimization charges, pre-tax	$	11,084	$	10,702

⁽¹⁾ Adjustments for accelerated depreciation and impairment charges reflect the impact of incremental store closures included in the Company’s retail fleet optimization plan.

⁽²⁾ Reflects the impact of accelerated depreciation on property and equipment due to the change in the useful life of store assets for store closures added as a result of the Company’s retail fleet optimization plan.