Property and Equipment

12 Months Ended

Feb. 03, 2024

Property, Plant and Equipment [Abstract]

Property and equipment is summarized as follows (in thousands):


	Feb 3, 2024		Jan 28, 2023
Land, buildings and improvements	$	50,934	$	51,017
Leasehold improvements	351,031		353,106
Furniture, fixtures and equipment	482,184		459,113
Construction in progress	11,039		14,545
Assets under finance leases	41,940		37,849
	937,128		915,630
Less accumulated depreciation and amortization	690,480		675,275
	$	246,648	$	240,355

During fiscal 2024 and fiscal 2023, the Company entered into finance and operating leases related primarily to computer hardware and software. The accumulated depreciation and amortization related to assets under finance leases was approximately $26.8 million and $18.8 million as of February 3, 2024 and January 28, 2023, respectively, and was included in depreciation expense when recognized. See Note 8 for more information regarding the related finance lease obligations.

Construction in progress represents the costs associated with the construction in progress of leasehold improvements to be used in the Company’s operations, primarily for new and remodeled stores in retail operations.

Impairment

The Company recorded asset impairment charges related to property and equipment of $6.4 million, $9.5 million and $2.4 million in fiscal 2024, fiscal 2023 and fiscal 2022, respectively. The asset impairment charges for fiscal 2024, fiscal 2023 and fiscal 2022 related primarily to certain retail locations in Europe, North America and Asia resulting from underperformance, expected store closures and other global economic conditions.

Impairments to property and equipment are summarized as (in thousands):


	Feb 3, 2024		Jan 28, 2023
Aggregate carrying value of property and equipment impaired	$	66,703	$	44,284
Less property and equipment impairment charges	6,393		9,474
Aggregate remaining fair value of property and equipment impaired	$	60,310	$	34,810

The Company’s impairment evaluations included testing of 388 retail locations and 519 retail locations during fiscal 2024 and fiscal 2023, respectively, which were deemed to have possible impairment indicators. During fiscal 2024 and fiscal 2023, the Company concluded that 101 retail locations and 80 retail locations, respectively, were determined to be impaired, as the carrying amounts of the fixed assets exceeded their estimated fair values (determined based on discounted cash flows) at each of the respective dates. Refer to Note 1 for a description of other assumptions that management considers in estimating the future discounted cash flows. If actual results are not consistent with the assumptions and judgments used in estimating future cash flows and asset fair values, there may be additional exposure to future impairment losses that could be material to the Company’s results of operations.