Retail Fleet Optimization Plan

12 Months Ended

Jan. 30, 2021

Property, Plant and Equipment [Abstract]

RETAIL FLEET OPTIMIZATION PLAN:

In fiscal 2018, the Company announced a retail fleet optimization plan to rebalance the mix between our physical store presence and our digital network. Stores support the digital strategy and give us an enhanced presence. 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. Accelerated depreciation of property and equipment for fiscal 2020 was immaterial.

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.

To further support the digital strategy and improve store productivity, we anticipate closing approximately 40 to 45 stores in fiscal 2021.