Income Taxes |
3 Months Ended |
|---|---|
May 03, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes For the thirteen weeks ended May 3, 2026 and May 4, 2025, the Company recorded an income tax benefit of $5.6 million and $3.8 million, respectively, which reflects an effective tax rate of 33.6% and 25.9%, respectively. The effective tax rate for the thirteen weeks ended May 3, 2026 and May 4, 2025 varies from the 21% federal statutory tax rate primarily due to income state taxes and covered employees compensation limitation under Section 162m.
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 weeks ended May 3, 2026 and May 4, 2025, 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. On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was signed into law. The OBBBA includes various changes to U.S. federal income tax law, including extensions of several expiring provisions from the Tax Cuts and Jobs Act of 2017. The OBBBA has multiple effective dates, with certain provisions effective in 2025. The OBBBA did not have a material impact on the Company’s effective tax rate for the thirteen weeks ended May 3, 2026.
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