Income Taxes |
9 Months Ended |
|---|---|
Nov. 02, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes For the thirteen weeks ended November 2, 2025 and November 3, 2024, the Company recorded an income tax benefit of $5.0 million and $2.1 million, respectively, which reflects an effective tax rate of 32.4% and 29.8%, respectively. For the thirty-nine weeks ended November 2, 2025 and November 3, 2024, the Company recorded an income tax benefit of $10.9 million and $8.1 million, respectively, which reflects an effective tax rate of 28.0% and 25.3%, respectively. The effective tax rate for the thirteen and thirty-nine weeks ended November 2, 2025 and November 3, 2024 varies from the 21% federal statutory tax rate primarily due to state taxes.
The Company does not anticipate any material adjustments relating to unrecognized tax benefits within the next twelve months; however, the ultimate outcome of tax matters is uncertain and unforeseen results can occur. The Company had no material interest or penalties during the thirteen and thirty-nine weeks ended November 2, 2025 and November 3, 2024, and does not anticipate any such items during the next twelve months. The Company's policy is to record interest and penalties directly related to uncertain tax positions as income tax expense in the condensed statements of operations.
The Company has completed its initial assessment of the One Big Beautiful Bill Act (“OBBBA”) corporate tax provisions which was enacted on July 4, 2025. OBBBA contained a number of U.S. corporate tax provisions, of which the Company elected to expense U.S. incurred research or experimental expenditures immediately and full bonus depreciation for certain assets placed into service after January 19, 2025. These planned elections are based on the Company’s current projected taxable income estimates. As a result, the Company expects U.S. cash taxes to significantly decrease in 2025 with no material impact to the effective tax rate.
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