Inventory

9 Months Ended

Oct. 31, 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.

Inventory write-offs for the thirty-nine weeks ended October 31, 2020 were $59.7 million, including $55.4 million in significant inventory-write offs as a result of changes in the market for those inventories and the resulting slowdown in sell through rates due to the impact of the pandemic. Inventory write-offs for the thirteen weeks ended October 31, 2020 and the thirteen and thirty-nine weeks ended November 2, 2019 were $5.4 million, $0.8 million and $7.0 million, respectively.