Inventory

6 Months Ended

Aug. 01, 2020

Inventory Disclosure [Abstract]

Inventory

INVENTORY

We use the moving average cost method to determine the cost of merchandise inventories. We identify potentially excess and slow-moving inventories by evaluating inventory aging, turn rates and inventory levels in conjunction with our overall sales trend. Further, inventory realization exposure is identified through analysis of gross margins and markdowns in combination with changes in current business trends. We record excess and slow-moving inventories at net realizable value.

Primarily as a result of changes in the market for certain Company products and the resulting slowdown in sell through rates due to the impact of the pandemic, carrying amounts for those inventories were reduced by $12.3 million and $55.4 million for the thirteen and twenty-six weeks ended August 1, 2020, respectively. These inventory write-offs are included in cost of goods sold in the accompanying unaudited condensed consolidated statements of loss. Inventory write-offs for the thirteen and twenty-six weeks ended August 3, 2019 were $1.3 million and $6.2 million, respectively.