^[1],[2]

605,407

548,953

1,772,567

1,571,590

385,264

357,844

1,139,055

1,037,812

Gross profit

220,143

191,109

633,512

533,778

197,943

178,009

600,731

517,871

European Commission fine

42,428

Asset impairment charges

1,277

2,018

5,017

6,013

11,494

(152)

11,494

Loss from operations

^[1],[3]

(21,505)

(412)

(14,512)

(1,600)

Other income (expense):

Other income (expense), net

(784)

(684)

(2,386)

(1,642)

Interest income

783

891

2,892

3,022

(5,810)

2,216

(7,064)

1,935

Total other income (expense)

(5,811)

2,423

(6,558)

3,315

Earnings (loss) before income tax expense (benefit)

(27,316)

2,011

(21,070)

1,715

Net earnings attributable to noncontrolling interests

(14,500)

3,673

(13,001)

8,723

Net loss

(12,816)

(1,662)

(8,069)

(7,008)

626

1,198

1,064

1,926

Net loss attributable to Guess, Inc.

$ (13,442)

$ (2,860)

$ (9,133)

$ (8,934)

Net loss per common share attributable to common stockholders (Note 3):

Basic (in dollars per share) | $ / shares

$ (0.17)

$ (0.04)

$ (0.12)

Diluted (in dollars per share) | $ / shares

$ (0.17)

$ (0.04)

$ (0.12)

Weighted average common shares outstanding attributable to common stockholders (Note 3):

Basic (in shares) | shares

80,189

82,390

80,067

82,599

Diluted (in shares) | shares

80,189

82,390

80,067

82,599

Dividends declared per common share (in dollars per share) | $ / shares

$ 0.225

$ 0.675

[1]	During the first quarter of fiscal 2019, the Company adopted a comprehensive new revenue recognition standard using a modified retrospective method that does not restate prior periods to be comparable to the current period presentation. The adoption of this guidance primarily impacted the presentation of advertising contributions received from the Company’s licensees and the related advertising expenditures incurred by the Company. The adoption of this guidance resulted in an increase in net royalty revenue within the Company’s Licensing segment of $2.7 million, as well as an increase in SG&A expenses in our Americas Retail, Americas Wholesale and Licensing segments as well as corporate overhead of $1.0 million, $0.6 million, $0.3 million and $0.6 million, respectively, during the three months ended November 3, 2018 compared to the same prior-year period. The net favorable impact on loss from operations was approximately $0.2 million during the three months ended November 3, 2018 compared to the same prior-year period. During the nine months ended November 3, 2018, the adoption of this guidance resulted in an increase in net royalty revenue within the Company’s Licensing segment of $7.1 million, as well as an increase in SG&A expenses in our Americas Retail, Americas Wholesale and Licensing segments as well as corporate overhead of $3.3 million, $1.5 million, $0.7 million and $1.7 million, respectively, during the nine months ended November 3, 2018 compared to the same prior-year period. The net unfavorable impact on loss from operations was approximately $0.1 million during the nine months ended November 3, 2018 compared to the same prior-year period. Refer to Note 1 for more information regarding the impact from the adoption of this new standard.
[2]	During the fourth quarter of fiscal 2018, the Company reclassified net royalties received on the Company’s inventory purchases of licensed product from net revenue to cost of product sales to reflect its treatment as a reduction of the cost of such licensed product. Accordingly, net revenue for the three and nine months ended October 28, 2017 has been adjusted to conform to the current period presentation. This reclassification had no impact on previously reported loss from operations.
[3]	During the first quarter of fiscal 2019, the Company adopted new authoritative guidance which requires that the non-service components of net periodic defined benefit pension cost be presented outside of earnings (loss) from operations. Accordingly, loss from operations and segment results for the three and nine months ended October 28, 2017 have been adjusted to conform to the current period presentation.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (12,816)	$ (1,662)	$ (8,069)	$ (7,008)
Foreign currency translation adjustment
Gains (losses) arising during the period	(11,745)	(9,102)	(59,270)	47,770
Derivative financial instruments designated as cash flow hedges
Gains (losses) arising during the period	1,833	3,387	14,000	(11,702)
Less income tax effect	(237)	(638)	(1,825)	1,482
Reclassification to net loss for (gains) losses realized	1,597	313	5,787	(997)
Less income tax effect	(178)	(78)	(720)	50
Defined benefit plans
Foreign currency and other adjustments	42	106	345	2
Less income tax effect	(5)	(9)	(31)	0
Net actuarial loss amortization	150	116	453	344
Prior service credit amortization	(7)	(7)	(21)	(20)
Less income tax effect	(19)	(21)	(58)	(62)
Total comprehensive income (loss)	(21,385)	(7,595)	(49,409)	29,859
Less comprehensive income (loss) attributable to noncontrolling interests:
Net earnings	626	1,198	1,064	1,926
Foreign currency translation adjustment	(1,181)	(918)	(994)	1,402
Amounts attributable to noncontrolling interests	(555)	280	70	3,328
Comprehensive income (loss) attributable to Guess, Inc.	$ (20,830)	$ (7,875)	$ (49,479)	$ 26,531

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017	Feb. 03, 2018
Cash flows from operating activities:
Net loss	$ (12,816)	$ (1,662)	$ (8,069)	$ (7,008)	$ (3,901)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of property and equipment			47,391	45,614
Amortization of other long-term and intangible assets			3,008	1,155
Share-based compensation expense			12,534	12,410
Unrealized forward contract (gains) losses			(1,884)	1,532
Net loss on disposition of property and equipment and long-term assets			5,663	4,548
Other items, net			12,937	(5,278)
Changes in operating assets and liabilities:
Accounts receivable			(6,065)	2,527
Inventories			(159,463)	(93,337)
Prepaid expenses and other assets			(28,398)	(11,817)
Accounts payable and accrued expenses			87,857	21,411
Deferred rent and lease incentives			2,975	1,354
Other long-term liabilities			(15,401)	(7,313)
Net cash used in operating activities			(46,915)	(34,202)
Cash flows from investing activities:
Purchases of property and equipment			(74,890)	(65,345)
Proceeds from sale of long-term assets			0	1,052
Changes in other assets			0	(553)
Acquisition of businesses, net of cash acquired			(6,404)	(2,929)
Net cash settlement of forward contracts			156	(354)
Purchases of investments			(2,093)	(497)
Net cash used in investing activities			(83,231)	(68,626)
Cash flows from financing activities:
Proceeds from borrowings			0	166
Repayment of capital lease obligations and borrowings			(1,469)	(665)
Dividends paid			(54,858)	(56,527)
Noncontrolling interest capital contribution			0	962
Noncontrolling interest capital distribution			(3,069)	(1,358)
Issuance of common stock, net of tax withholdings on vesting of stock awards			4,737	(82)
Purchase of treasury stock			(23,620)	(24,812)
Net cash used in financing activities			(78,279)	(82,316)
Effect of exchange rates on cash, cash equivalents and restricted cash			(19,803)	20,808
Net change in cash, cash equivalents and restricted cash			(228,228)	(164,336)
Cash, cash equivalents and restricted cash at the beginning of the year			367,682	397,650	397,650
Cash, cash equivalents and restricted cash at the end of the period	$ 139,454	$ 233,314	139,454	233,314	$ 367,682
Supplemental cash flow data:
Interest paid			961	849
Income taxes paid			28,039	18,124
Non-cash investing and financing activity:
Assets acquired under capital lease obligations			$ 1,172	$ 18,042

Basis of Presentation and New Accounting Guidance	9 Months Ended
Basis of Presentation and New Accounting Guidance	Nov. 03, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and New Accounting Guidance	Basis of Presentation and New Accounting Guidance Description of the Business Guess?, Inc. (the “Company” or “GUESS?”) designs, markets, distributes and licenses a leading lifestyle collection of contemporary apparel and accessories for men, women and children that reflect the American lifestyle and European fashion sensibilities. The Company’s designs are sold in GUESS? owned stores, to a network of wholesale accounts that includes better department stores, selected specialty retailers and upscale boutiques and through the Internet. GUESS? branded products, some of which are produced under license, are also sold internationally through a series of retail store licensees and wholesale distributors. Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements of the Company contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the condensed consolidated balance sheets as of November 3, 2018 and February 3, 2018, the condensed consolidated statements of loss and comprehensive income (loss) for the three and nine months ended November 3, 2018 and October 28, 2017 and the condensed consolidated statements of cash flows for the nine months ended November 3, 2018 and October 28, 2017. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and the instructions to Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, they have been condensed and do not include all of the information and footnotes required by GAAP for complete financial statements. The results of operations for the three and nine months ended November 3, 2018 are not necessarily indicative of the results of operations to be expected for the full fiscal year. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended February 3, 2018. The three and nine months ended November 3, 2018 had the same number of days as the three and nine months ended October 28, 2017. All references herein to “fiscal 2019,” “fiscal 2018” and “fiscal 2017” represent the results of the 52-week fiscal year ending February 2, 2019, the 53-week fiscal year ended February 3, 2018 and the 52-week fiscal year ended January 28, 2017, respectively. Reclassifications The Company has made certain reclassifications to prior year amounts to conform to the current period presentation within the accompanying notes to the condensed consolidated financial statements. Net Gains (Losses) on Lease Terminations During the nine months ended November 3, 2018, the Company recorded net gains on lease terminations of approximately $0.2 million related primarily to the early termination of certain lease agreements in North America. The net gains on lease terminations were recorded during the three months ended May 5, 2018. During the third quarter of fiscal 2018, the Company recorded net losses of $11.5 million on lease terminations related primarily to the modification of certain lease agreements held with a common landlord in North America. In connection with this modification, the Company made up-front payments of approximately $22.0 million, of which $12.4 million was recognized as net losses on lease terminations and $9.6 million was recorded as advance rent payments. During the third quarter of fiscal 2018, the Company also recorded net gains on lease terminations of approximately $1.0 million related primarily to the early termination of certain lease agreements in Europe. New Accounting Guidance Changes in Accounting Policies In May 2014, the Financial Accounting Standards Board (“FASB”) issued a comprehensive new revenue recognition standard which superseded previous existing revenue recognition guidance. The standard is intended to clarify the principles of recognizing revenue and create common revenue recognition guidance between GAAP and International Financial Reporting Standards. The standard also requires expanded disclosures surrounding revenue recognition. During fiscal 2017, the FASB issued additional clarification guidance on the new revenue recognition standard which also included certain scope improvements and practical expedients. The Company adopted this guidance (including clarification guidance issued) effective February 4, 2018 using the modified retrospective method and, as a result, recorded a cumulative adjustment to increase retained earnings by approximately $5.8 million, net of taxes. The adjustment related primarily to changes in the presentation of advertising contributions received from the Company’s licensees and the related advertising expenditures incurred by the Company. Under previous guidance, the Company recorded advertising contributions received from its licensees and the related advertising expenditures incurred by the Company on a net basis in its consolidated balance sheet. To the extent that the advertising contributions exceeded the Company’s advertising expenditures for its licensees, the excess contribution was treated as a deferred liability and was included in accrued expenses in the Company’s consolidated balance sheet. Under the new revenue recognition standard, advertising contributions and related advertising expenditures related to the Company’s licensing business are recorded on a gross basis in the Company’s condensed consolidated statements of loss. This change resulted in an increase to net revenue and selling, general, and administrative (“SG&A”) expenses of $2.7 million and $2.5 million, respectively, during the three months ended November 3, 2018 compared to the same prior-year period. During the nine months ended November 3, 2018, this change resulted in an increase to net revenue and SG&A expenses of $7.1 million and $7.2 million, respectively, compared to the same prior-year period. Other minor differences related to the timing of revenue recognition from the Company’s e-commerce operations, which are now recognized when merchandise is transferred to a common carrier rather than upon receipt by the customer, and a minimal change in the valuation of the amount that is deferred related to points earned under the Company’s loyalty programs. Additionally, allowances for wholesale sales returns and wholesale markdowns are now presented as accrued expenses rather than as reductions to accounts receivable, and the estimated cost associated with the allowance for sales returns is presented within other current assets rather than included in inventories in the Company’s condensed consolidated balance sheet. Refer to Note 2 for the Company’s expanded disclosures on revenue recognition. In January 2016, the FASB issued authoritative guidance which requires equity investments not accounted for under the equity method of accounting or consolidation accounting to be measured at fair value, with subsequent changes in fair value recognized in net income. In February 2018, the FASB issued additional clarification guidance which made targeted improvements to address certain aspects of recognition, measurement, presentation and disclosure requirements for financial instruments. The Company adopted this guidance (including the clarification guidance) effective February 4, 2018. The adoption of this guidance did not result in a cumulative-effect adjustment as of the beginning of the current year and did not have a material impact on the Company’s condensed consolidated financial statements or related disclosures. In October 2016, the FASB issued authoritative guidance which amends the accounting for income taxes on intra-entity transfers of assets other than inventory. This guidance requires that entities recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The income tax consequences on intra-entity transfers of inventory will continue to be deferred until the inventory has been sold to a third party. The Company adopted this guidance effective February 4, 2018. The adoption of this guidance did not have an impact on the Company’s condensed consolidated financial statements or related disclosures. In March 2017, the FASB issued authoritative guidance related to the presentation of net periodic pension cost in the income statement. This guidance requires that the service cost component of net periodic pension cost be presented in the same line as other compensation costs arising from services rendered by the employees during the period. The other non-service components of net periodic pension cost are required to be presented in the income statement separately from the service cost component and outside of earnings from operations. This guidance also allows for the service cost component to be eligible for capitalization when applicable. The Company adopted this guidance effective February 4, 2018 on a retrospective basis for the presentation of the service cost component and other non-service components of net periodic pension cost in the income statement and on a prospective basis for capitalization of the service cost component. As a result, the Company reclassified $0.5 million and $1.6 million from SG&A expenses to other income (expense) during the three and nine months ended October 28, 2017, respectively, which resulted in a related improvement in operating loss during each of the respective periods. Other than the change in presentation of other non-service components of net periodic pension cost within the Company’s condensed consolidated statements of loss, the adoption of this guidance did not have an impact on the Company’s condensed consolidated financial statements and related disclosures. In May 2017, the FASB issued authoritative guidance that provides clarification on accounting for modifications in share-based payment awards. The Company adopted this guidance effective February 4, 2018. The adoption of this guidance did not have an impact on the Company’s condensed consolidated financial statements or related disclosures. In June 2018, the FASB issued authoritative guidance that expanded the scope of stock compensation to include non-employee share-based payment transactions. The Company early adopted this guidance during the second quarter of fiscal 2019. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements or related disclosures. Recently Issued Accounting Guidance In February 2016, the FASB issued a comprehensive new lease standard which will supersede previous lease guidance. The standard requires a lessee to recognize an asset related to the right to use the underlying asset and a liability that approximates the present value of the lease payments over the term of contracts that qualify as leases under the new guidance. The standard also requires expanded disclosures surrounding leases. The standard (including clarification guidance issued during fiscal 2019) is effective for fiscal periods beginning after December 15, 2018, which will be the Company’s first quarter of fiscal 2020, with early adoption permitted. The Company has completed the design phase of its selected lease management system and is in the process of completing its inventory of its lease contracts, validating data migration, as well as implementing processes and controls to enable the preparation of the required financial information for this standard. In July 2018, the FASB issued authoritative guidance that provides entities with an additional transition method of applying the new lease standard at the adoption date and recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Upon adoption of the standard, the Company expects to report material right-of-use assets and material lease liabilities as well as enhanced disclosures. In June 2016, the FASB issued authoritative guidance related to the measurement of credit losses on financial instruments. This guidance is effective for fiscal years beginning after December 15, 2019, which will be the Company’s first quarter of fiscal 2021. Early adoption is permitted for fiscal periods beginning after December 15, 2018, which will be the Company’s first quarter of fiscal 2020. The Company is currently evaluating the impact of the adoption of this standard on its condensed consolidated financial statements and related disclosures. In January 2017, the FASB issued authoritative guidance to simplify the testing for goodwill impairment by removing step two from the goodwill testing. Under current guidance, if the fair value of a reporting unit is lower than its carrying amount (step one), an entity would calculate an impairment charge by comparing the implied fair value of goodwill with its carrying amount (step two). The implied fair value of goodwill was calculated by deducting the fair value of the assets and liabilities of the respective reporting unit from the reporting unit’s fair value as determined under step one. This guidance instead provides that an impairment charge should be recognized based on the difference between a reporting unit’s fair value and its carrying value. This guidance also does not require a qualitative test to be performed on reporting units with zero or negative carrying amounts. However, entities need to disclose any reporting units with zero or negative carrying amounts that have goodwill and the amount of goodwill allocated to each. This guidance is effective for fiscal years beginning after December 15, 2019, which will be the Company’s first quarter of fiscal 2021, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this guidance is not expected to have a material impact on the Company’s condensed consolidated financial statements or related disclosures. In August 2017, the FASB issued authoritative guidance to better align the results of hedge accounting with an entity’s risk management activities. This guidance updates the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. In October 2018, the FASB clarified the new hedge accounting guidance by allowing the Secured Overnight Financing Rate to be eligible as a U.S. benchmark interest rate for purposes of applying hedge accounting. This guidance is effective for fiscal years beginning after December 15, 2018, which will be the Company’s first quarter of fiscal 2020, and requires a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, with early adoption permitted. The updated presentation and disclosure guidance is required only on a prospective basis. The adoption of this guidance is not expected to have a material impact on the Company’s condensed consolidated financial statements or related disclosures. In August 2018, the FASB issued authoritative guidance to modify the disclosure requirements on fair value measurements. This guidance is effective for fiscal years beginning after December 15, 2019, which will be the Company’s first quarter of fiscal 2021, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its related disclosures. In August 2018, the FASB issued authoritative guidance to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This guidance is effective for fiscal years beginning after December 15, 2020, which will be the Company’s first quarter of fiscal 2022, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its related disclosures. In August 2018, the FASB issued authoritative guidance to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance provides criteria for determining which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The capitalized implementation costs are required to be expensed over the term of the hosting arrangement. The guidance also clarifies the presentation requirements for reporting such costs in the entity’s financial statements. This guidance is effective for fiscal years beginning after December 15, 2019, which will be the Company’s first quarter of fiscal 2021, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its condensed consolidated financial statements and related disclosures.

Revenue Recognition	9 Months Ended
Revenue Recognition	Nov. 03, 2018
Revenue Recognition [Abstract]
Revenue Recognition	Revenue Recognition Significant Accounting Policies and Practices Products Transferred at a Point in Time The Company recognizes the majority of its revenue from its direct-to-consumer (brick-and-mortar retail stores and concessions as well as e-commerce) and wholesale distribution channels at a point in time when it satisfies a performance obligation and transfers control of the product to the respective customer. For the Company’s brick-and-mortar retail stores and concessions, revenue is typically recognized at the point of sale. The Company adopted the new revenue recognition standard effective as of the first quarter of fiscal 2019, and accordingly, revenue generated from the Company’s e-commerce sites is recognized when merchandise is transferred to a common carrier. This is a change compared to the Company’s treatment under previous guidance where revenue from the Company’s e-commerce sites was recognized based on the estimated customer receipt date. This change had an immaterial impact on revenue for the three and nine months ended November 3, 2018. Revenue generated from the Company’s wholesale distribution channel is recognized when control transfers to the customer, which generally occurs upon shipment. The amount of revenue that is recognized is based on the transaction price, which represents the invoiced amount and includes estimates of variable consideration such as allowances for sales returns, markdowns and loyalty award obligations, where applicable. The amount of variable consideration included in the transaction price may be constrained and is included only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized under the contract will not occur in a future period. The Company accepts payments at its brick-and-mortar retail locations and its e-commerce sites in the form of cash, credit cards, gift cards and loyalty points, where applicable. Payment terms, typically less than one year, are offered to the Company’s wholesale customers and do not include a significant financing component. The Company extends credit to wholesale customers based upon an evaluation of the customer’s financial condition and credit history and generally requires no collateral but does obtain credit insurance when considered appropriate. As of November 3, 2018, approximately 49% of the Company’s total net trade receivables and 62% of its European net trade receivables were subject to credit insurance coverage, certain bank guarantees or letters of credit for collection purposes. The Company’s credit insurance coverage contains certain terms and conditions specifying deductibles and annual claim limits. The Company maintains allowances for doubtful accounts for estimated losses that result from the inability of its wholesale customers to make their required payments. The Company bases its allowances on analysis of the aging of accounts receivable at the date of the financial statements, assessments of historical and current collection trends, an evaluation of the impact of current economic conditions and whether the Company has obtained credit insurance or other guarantees. Management performs regular evaluations concerning the ability of its customers to satisfy their obligations and records a provision for doubtful accounts based on these evaluations. The Company’s credit losses for the periods presented were not significant compared to sales and did not significantly exceed management’s estimates. Refer to Note 5 for further information regarding the Company’s allowance for doubtful accounts. Shipping and handling costs associated with outbound freight incurred to transfer a product to a customer are accounted for as fulfillment costs and are included in SG&A expenses. Sales and usage-based taxes collected from customers and remitted directly to governmental authorities are excluded from net revenues. This is consistent with the presentation of such amounts in previous years. The Company does not have significant contract balances related to its direct-to-consumer or wholesale distribution channels other than the allowance for sales returns and markdowns as well as liabilities related to its gift cards and loyalty programs. The Company also does not have significant contract acquisition costs related to its direct-to-consumer or wholesale distribution channels. Sales Return Allowances The Company accrues for estimated sales returns in the period in which the related revenue is recognized. To recognize the financial impact of sales returns, the Company estimates the amount of goods that will be returned based on historical experience and current trends and reduces sales and cost of sales accordingly. The Company’s policy allows retail customers in certain regions a grace period to return merchandise following the date of sale. Substantially all of these returns are considered to be resalable at a price that exceeds the cost of the merchandise. The Company adopted the new revenue recognition standard effective as of the first quarter of fiscal 2019, and accordingly, has included the allowance for sales returns in accrued expenses and the estimated cost associated with such sales returns within other current assets in its condensed consolidated balance sheet. Prior to the adoption of the new revenue recognition standard, the Company recorded the allowance for wholesale sales returns against accounts receivable and the estimated cost of inventory associated with the allowance for sales returns in inventories. The allowance for retail sales returns was included in accrued expenses which is consistent with the current presentation. As of November 3, 2018, the Company included $26.1 million in accrued expenses related to the allowance for sales returns and $10.4 million in other current assets related to the estimated cost of such sales returns. As of February 3, 2018, the Company included $25.0 million and $2.9 million in accounts receivable and accrued expenses, respectively, related to the allowance for sales returns and $11.9 million in inventories related to the estimated cost of such sales returns. Markdown Allowances Costs associated with customer markdowns are recorded as a reduction to revenues and any amounts unapplied to existing receivables are included in accrued expenses. These markdown allowances resulted from seasonal negotiations with the Company’s wholesale customers, as well as historical trends and the evaluation of the impact of current economic conditions. The Company adopted the new revenue recognition standard effective as of the first quarter of fiscal 2019, and accordingly, has included the allowance for markdowns in accrued expenses in its condensed consolidated balance sheet. As of November 3, 2018, the Company included $11.2 million in accrued expenses related to the allowance for markdowns. As of February 3, 2018, the Company included $10.8 million in accounts receivable related to the allowance for markdowns. Gift Cards Gift card breakage is income recognized due to the non-redemption of a portion of gift cards sold by the Company for which a liability was recorded in prior periods. Gifts cards are mainly used in the U.S. and Canada. The Company issues its gift cards in the U.S. and Canada through one of its subsidiaries and is not required by law to escheat the value of unredeemed gift cards to the state in which the subsidiary is domiciled. Estimated breakage amounts are accounted for under the redemption recognition method and are classified as additional net revenues as the gift cards are redeemed. The Company’s gift card breakage rate is approximately 5.5% and 5.3% for the U.S. retail business and Canadian retail business, respectively, based upon historical redemption patterns, which represents the cumulative estimated amount of gift card breakage from the inception of the electronic gift card program in late 2002. Based upon historical redemption trends, the Company recognizes estimated gift card breakage as a component of net revenue in proportion to actual gift card redemptions, over the period that remaining gift card values are redeemed. Any future revisions to the estimated breakage rate may result in changes in the amount of breakage income recognized in future periods. There have been no changes to the Company’s accounting for gift card breakage upon adoption of the new revenue recognition standard effective as of the first quarter of fiscal 2019. During the three and nine months ended November 3, 2018, the Company recognized $0.3 million and $0.5 million, respectively, of gift card breakage to revenue. During the three and nine months ended October 28, 2017, the Company recognized $0.4 million and $0.6 million, respectively, of gift card breakage to revenue. As of November 3, 2018 and February 3, 2018, the Company included $4.4 million and $5.2 million in accrued expenses related to its gift card liability, respectively. Loyalty Programs The Company has customer loyalty programs in North America, Europe and Asia which cover all of its brands. Under certain of the programs, primarily in the U.S. and Canada, customers accumulate points based on purchase activity. Once a loyalty program member achieves a certain point level, the member earns awards that may only be redeemed for merchandise. Unredeemed points generally expire after six months without additional purchase activity and unredeemed awards generally expire after two months. Where applicable, the Company allocates a portion of the transaction price from sales in its direct-to-consumer channel to its loyalty program by using historical redemption rates to estimate the value of future award redemptions. This amount is accrued in current liabilities and recorded as a reduction of net revenue in the period which the related revenue is recognized. During the three and nine months ended November 3, 2018, activity related to the Company’s loyalty programs decreased net revenue by $0.1 million and $0.5 million, respectively. During the three months ended October 28, 2017, activity related to the Company’s loyalty programs had a minimal impact on the net revenues. During the nine months ended October 28, 2017, activity related to the Company’s loyalty programs increased net revenue by $0.4 million. The aggregate dollar value of the loyalty program accruals included accrued expense was $4.5 million and $3.8 million as of November 3, 2018 and February 3, 2018, respectively. Future revisions to the estimated liability may result in changes to net revenue. Intellectual Property Transferred Over Time The Company’s trademark license agreements represent symbolic licenses that are dependent on the Company’s continued support over the term of the license agreement. The amount of revenue that is recognized from the licensing arrangements is based on sales-based royalty and advertising fund contributions as well as specific fixed payments, where applicable. The typical license agreement requires that the licensee pay the Company the greater of a royalty based on a percentage of the licensee’s net sales of licensed products or a guaranteed annual minimum royalty that typically increases over the term of the license agreement. Generally, licensees are also required to make contributions to advertising funds, as a percentage of their sales, over the term of the licensing agreement, and may elect to make additional contributions to support specific brand-building initiatives. The Company recognizes revenue from sales-based royalty and advertising fund contributions when the related sales occur, which is consistent with the timing of when the performance obligation is satisfied. The Company adopted the new revenue recognition standard effective as of the first quarter of fiscal 2019, and accordingly, has recorded advertising contributions in revenue on a gross basis separate from any related advertising expenditures made by the Company which are recorded in SG&A expenses in the Company’s condensed consolidated statements of income (loss). Prior to the adoption of the new revenue recognition standard, the Company recorded advertising contributions received from its licensees and the related advertising expenditures incurred by the Company on a net basis in its consolidated balance sheet. Under previous guidance, to the extent that the advertising contributions exceed the Company’s advertising expenditures for its licensees, the excess contribution was treated as a deferred liability and was included in accrued expenses in the Company’s condensed consolidated balance sheet. Refer to Note 1 for detail regarding the impact of this change on the Company’s condensed consolidated balance sheet and its condensed consolidated statements of income (loss) as a result of the adoption of the new revenue recognition standard. The Company records royalty and advertising payments received on the Company’s purchases of licensed product as a reduction of the cost of the licensed product. The Company’s trademark license agreements customarily provide for a multi-year initial term ranging from three to ten years, and may contain options to renew prior to expiration for an additional multi-year period. Several of the Company’s key license agreements provide for specified, fixed payments over and above the normal, ongoing royalty payments in consideration of the grant of the license rights. These payments are recognized ratably as revenue over the term of the license agreement and do not include a significant financing component. The unrecognized portion of upfront payments is included in deferred royalties in accrued expenses and other long-term liabilities depending on the short or long-term nature of the payments to be recognized. As of November 3, 2018, the Company had $6.7 million and $15.0 million of deferred royalties related to these upfront payments included in accrued expenses and other long-term liabilities, respectively. This compares to $6.8 million and $12.8 million of deferred royalties related to these upfront payments included in accrued expenses and other long-term liabilities, respectively, at February 3, 2018. During the three and nine months ended November 3, 2018, the Company recognized $3.6 million and $10.5 million in net royalties related to the amortization of the deferred royalties, respectively. During the three and nine months ended October 28, 2017, the Company recognized $3.0 million and $9.0 million in net royalties related to the amortization of the deferred royalties, respectively. Contract balances related to the Company’s licensing distribution channel consist primarily of royalty receivables and liabilities related to deferred royalties. Refer to Note 5 for further information on royalty receivables. The Company does not have significant contract acquisition costs related to its licensing operations. Refer to Note 8 for further information on disaggregation of revenue by segment and country.

Earnings (Loss) per Share

9 Months Ended

Nov. 03, 2018

Earnings Per Share [Abstract]

Earnings (Loss) per Share

Basic earnings (loss) per share represents net earnings (loss) attributable to common stockholders divided by the weighted average number of common shares outstanding during the period. The Company considers any restricted stock units with forfeitable dividend rights that are issued and outstanding, but considered contingently returnable if certain service conditions are not met, as common equivalent shares outstanding. These restricted stock units are excluded from the weighted average number of common shares outstanding and basic earnings (loss) per share calculation until the respective service conditions have been met. Diluted earnings (loss) per share represents net earnings (loss) attributable to common stockholders divided by the weighted average number of common shares outstanding, inclusive of the dilutive impact of common equivalent shares outstanding during the period. The potentially dilutive impact of common equivalent shares outstanding is not included in the computation of diluted net loss per share as the impact of the shares would be antidilutive due to the net loss incurred for periods presented. Nonvested restricted stock awards (referred to as participating securities) are excluded from the dilutive impact of common equivalent shares outstanding in accordance with authoritative guidance under the two-class method since the nonvested restricted stockholders are entitled to participate in dividends declared on common stock as if the shares were fully vested and hence are deemed to be participating securities. Under the two-class method, distributed and undistributed earnings attributable to nonvested restricted stockholders are excluded from net earnings (loss) attributable to common stockholders for purposes of calculating basic and diluted earnings (loss) per common share. However, net losses are not allocated to nonvested restricted stockholders because they are not contractually obligated to share in the losses of the Company.

In addition, the Company has granted certain nonvested stock units that are subject to certain performance-based or market-based vesting conditions as well as continued service requirements through the respective vesting periods. These nonvested stock units are included in the computation of diluted net earnings (loss) per common share attributable to common stockholders only to the extent that the underlying performance-based or market-based vesting conditions are satisfied as of the end of the reporting period, or would be considered satisfied if the end of the reporting period was the end of the related contingency period, and the results would be dilutive under the treasury stock method.

The computation of basic and diluted net loss per common share attributable to common stockholders is as follows (in thousands, except per share data):



	Three Months Ended						Nine Months Ended
	Nov 3, 2018			Oct 28, 2017			Nov 3, 2018			Oct 28, 2017
Net loss	$	(13,442	)	$	(2,860	)	$	(9,133	)	$	(8,934	)
Less net earnings attributable to nonvested restricted stockholders	187			186			577			581
Net loss attributable to common stockholders	$	(13,629	)	$	(3,046	)	$	(9,710	)	$	(9,515	)

Weighted average common shares used in basic computations	80,189			82,390			80,067			82,599
Effect of dilutive securities:
Stock options and restricted stock units¹	—			—			—			—
Weighted average common shares used in diluted computations	80,189			82,390			80,067			82,599

Net loss per common share attributable to common stockholders:
Basic	$	(0.17	)	$	(0.04	)	$	(0.12	)	$	(0.12	)
Diluted	$	(0.17	)	$	(0.04	)	$	(0.12	)	$	(0.12	)

__________________________________

Notes:


¹	For the three and nine months ended November 3, 2018, there were 1,499,247 and 1,312,054, respectively, of potentially dilutive shares that were not included in the computation of diluted weighted average common shares and common equivalent shares outstanding because their effect would have been antidilutive given the Company’s net loss.

For the three months ended November 3, 2018 and October 28, 2017, equity awards granted for 1,310,933 and 2,901,025, respectively, of the Company’s common shares and for the nine months ended November 3, 2018 and October 28, 2017, equity awards granted for 1,610,091 and 3,104,027, respectively, of the Company’s common shares were outstanding but were excluded from the computation of diluted weighted average common shares and common equivalent shares outstanding because the assumed proceeds, as calculated under the treasury stock method, resulted in these awards being antidilutive. For the three and nine months ended November 3, 2018, the Company also excluded 1,336,679 nonvested stock units which are subject to the achievement of performance-based vesting conditions from the computation of diluted weighted average common shares and common equivalent shares outstanding because these conditions were not achieved as of November 3, 2018. For the three and nine months ended October 28, 2017, the Company excluded 1,145,080 nonvested stock units which were subject to the achievement of performance-based vesting conditions from the computation of diluted weighted average common shares and common equivalent shares outstanding because these conditions were not achieved as of October 28, 2017.

Share Repurchase Program

On June 26, 2012, the Company’s Board of Directors authorized a program to repurchase, from time-to-time and as market and business conditions warrant, up to $500 million of the Company’s common stock. Repurchases under the program may be made on the open market or in privately negotiated transactions, pursuant to Rule 10b5-1 trading plans or other available means. There is no minimum or maximum number of shares to be repurchased under the program, which may be discontinued at any time, without prior notice. During the nine months ended November 3, 2018, the Company repurchased 1,118,808 shares under the program at an aggregate cost of $17.6 million. The shares were repurchased during the three months ended May 5, 2018. During the nine months ended November 3, 2018, the Company also paid an additional $6.0 million for shares that were repurchased during the fourth quarter of fiscal 2018 but were settled during the first quarter of fiscal 2019. During the nine months ended October 28, 2017, the Company repurchased 1,919,967 shares under the program at an aggregate cost of $24.8 million. The Company repurchased 1,485,195 shares at an aggregate cost of $17.8 million during the three months ended April 29, 2017 and an additional 434,772 shares at an aggregate cost of $7.0 million during the three months ended October 28, 2017. As of November 3, 2018, the Company had remaining authority under the program to purchase $374.6 million of its common stock.

Stockholders' Equity and Redeemable Noncontrolling Interests

9 Months Ended

Nov. 03, 2018

Stockholders' Equity and Redeemable Noncontrolling Interests [Abstract]

Stockholders' Equity and Redeemable Noncontrolling Interests

Stockholders’ Equity and Redeemable Noncontrolling Interests

A reconciliation of common stock outstanding, treasury stock and the total carrying amount of total stockholders’ equity, Guess?, Inc. stockholders’ equity and stockholders’ equity attributable to nonredeemable noncontrolling interests for the fiscal year ended February 3, 2018 and nine months ended November 3, 2018 is as follows (in thousands, except share data):



	Shares				Stockholders’ Equity
	Common Stock		Treasury Stock		Guess?, Inc. Stockholders’ Equity			Nonredeemable Noncontrolling Interests			Total			Redeemable Noncontrolling Interests
Balance at January 28, 2017	84,069,492		56,440,482		$	969,222		$	11,772		$	980,994		$	4,452
Net earnings (loss)	—		—		(7,894		)	3,993			(3,901		)	—
Foreign currency translation adjustment	—		—		91,178			2,238			93,416			187
Loss on derivative financial instruments designated as cash flow hedges, net of income tax of $2,738	—		—		(19,994		)	—			(19,994		)	—
Actuarial valuation loss and related amortization, prior service credit amortization and foreign currency and other adjustments on defined benefit plans, net of income tax of $435	—		—		(1,647		)	—			(1,647		)	—
Issuance of common stock under stock compensation plans, net of tax effect	1,113,713		—		(1,257		)	—			(1,257		)	—
Issuance of stock under Employee Stock Purchase Plan	54,300		(54,300	)	566			—			566			—
Share-based compensation	—		—		18,852			—			18,852			—
Dividends	—		—		(76,048		)	—			(76,048		)	—
Share repurchases	(3,866,387	)	3,866,387		(56,159		)	—			(56,159		)	—
Noncontrolling interest capital contribution	—		—		—			11			11			951
Noncontrolling interest capital distribution	—		—		—			(1,358		)	(1,358		)	—
Balance at February 3, 2018	81,371,118		60,252,569		$	916,819		$	16,656		$	933,475		$	5,590
Cumulative adjustment from adoption of new accounting guidance	—		—		5,829			—			5,829			—
Net earnings (loss)	—		—		(9,133		)	1,064			(8,069		)	—
Foreign currency translation adjustment	—		—		(58,276		)	(994		)	(59,270		)	(786		)
Gain on derivative financial instruments designated as cash flow hedges, net of income tax of ($2,545)	—		—		17,242			—			17,242			—
Actuarial valuation and prior service credit amortization and foreign currency and other adjustments on defined benefit plans, net of income tax of ($89)	—		—		688			—			688			—
Issuance of common stock under stock compensation plans, net of tax effect	718,583		—		4,124			—			4,124			—
Issuance of stock under Employee Stock Purchase Plan	36,632		(36,632	)	613			—			613			—
Share-based compensation	—		—		12,534			—			12,534			—
Dividends	—		—		(55,955		)	—			(55,955		)	—
Share repurchases	(1,118,808	)	1,118,808		(17,587		)	—			(17,587		)	—
Noncontrolling interest capital distribution	—		—		—			(3,069		)	(3,069		)	—
Balance at November 3, 2018	81,007,525		61,334,745		$	816,898		$	13,657		$	830,555		$	4,804

Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss), net of related income taxes, for the three and nine months ended November 3, 2018 and October 28, 2017 are as follows (in thousands):



	Three Months Ended Nov 3, 2018
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Defined Benefit Plans			Total
Balance at August 4, 2018	$	(114,761	)	$	(142	)	$	(11,117	)	$	(126,020	)
Gains (losses) arising during the period	(10,564		)	1,596			37			(8,931		)
Reclassification to net loss for losses realized	—			1,419			124			1,543
Net other comprehensive income (loss)	(10,564		)	3,015			161			(7,388		)
Balance at November 3, 2018	$	(125,325	)	$	2,873		$	(10,956	)	$	(133,408	)



	Nine Months Ended Nov 3, 2018
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Defined Benefit Plans			Total
Balance at February 3, 2018	$	(67,049	)	$	(14,369	)	$	(11,644	)	$	(93,062	)
Gains (losses) arising during the period	(58,276		)	12,175			314			(45,787		)
Reclassification to net loss for losses realized	—			5,067			374			5,441
Net other comprehensive income (loss)	(58,276		)	17,242			688			(40,346		)
Balance at November 3, 2018	$	(125,325	)	$	2,873		$	(10,956	)	$	(133,408	)



	Three Months Ended Oct 28, 2017
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Defined Benefit Plans			Total
Balance at July 29, 2017	$	(103,675	)	$	(8,751	)	$	(8,483	)	$	(120,909	)
Gains (losses) arising during the period	(8,184		)	2,749			97			(5,338		)
Reclassification to net loss for losses realized	—			235			88			323
Net other comprehensive income (loss)	(8,184		)	2,984			185			(5,015		)
Balance at October 28, 2017	$	(111,859	)	$	(5,767	)	$	(8,298	)	$	(125,924	)



	Nine Months Ended Oct 28, 2017
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Defined Benefit Plans			Total
Balance at January 28, 2017	$	(158,227	)	$	5,400		$	(8,562	)	$	(161,389	)
Gains (losses) arising during the period	46,368			(10,220		)	2			36,150
Reclassification to net loss for (gains) losses realized	—			(947		)	262			(685		)
Net other comprehensive income (loss)	46,368			(11,167		)	264			35,465
Balance at October 28, 2017	$	(111,859	)	$	(5,767	)	$	(8,298	)	$	(125,924	)

Details on reclassifications out of accumulated other comprehensive income (loss) to net loss during the three and nine months ended November 3, 2018 and October 28, 2017 are as follows (in thousands):



	Three Months Ended						Nine Months Ended						Location of (Gain) Loss Reclassified from Accumulated OCI into Loss
	Nov 3, 2018			Oct 28, 2017			Nov 3, 2018			Oct 28, 2017
Derivative financial instruments designated as cash flow hedges:
Foreign exchange currency contracts	$	1,618		$	(81	)	$	5,646		$	(1,360	)	Cost of product sales
Foreign exchange currency contracts	—			337			201			244			Other income (expense)
Interest rate swap	(21		)	57			(60		)	119			Interest expense
Less income tax effect	(178		)	(78		)	(720		)	50			Income tax expense (benefit)
	1,419			235			5,067			(947		)
Defined benefit plans:
Net actuarial loss amortization¹	150			116			453			344			Other income (expense)
Prior service credit amortization¹	(7		)	(7		)	(21		)	(20		)	Other income (expense)
Less income tax effect	(19		)	(21		)	(58		)	(62		)	Income tax expense (benefit)
	124			88			374			262
Total reclassifications during the period	$	1,543		$	323		$	5,441		$	(685	)

__________________________________

Notes:

These accumulated other comprehensive income (loss) components are included in the computation of net periodic defined benefit pension cost. During the first quarter of fiscal 2019, the Company adopted new authoritative guidance which requires that the non-service components of net periodic defined benefit pension cost be presented outside of loss from operations. The Company adopted this guidance on a retrospective basis and, as a result, reclassified these components from SG&A expenses to other income (expense) for the three and nine months ended October 28, 2017. Refer to Note 13 for further information.

Redeemable Noncontrolling Interests

The Company is party to a put arrangement with respect to the common securities that represent the remaining noncontrolling interest for its majority-owned subsidiary, Guess Brasil Comércio e Distribuição S.A. (“Guess Brazil”), which was established through a majority-owned joint venture during fiscal 2014. The put arrangement for Guess Brazil, representing 40% of the total outstanding equity interest of that subsidiary, may be exercised at the discretion of the noncontrolling interest holder by providing written notice to the Company beginning in the sixth year of the agreement, or sooner in certain limited circumstances, and every third anniversary from the end of the sixth year thereafter subject to certain time restrictions. The redemption value of the Guess Brazil put arrangement is based on a multiple of Guess Brazil’s earnings before interest, taxes, depreciation and amortization subject to certain adjustments and is classified as a redeemable noncontrolling interest outside of permanent equity in the Company’s condensed consolidated balance sheet. The carrying value of the redeemable noncontrolling interest related to Guess Brazil was $1.4 million and $1.6 million as of November 3, 2018 and February 3, 2018, respectively.

The Company is also party to a put arrangement with respect to the common securities that represent the remaining noncontrolling interest for its majority-owned subsidiary, Guess? CIS, LLC (“Guess CIS”), which was established through a majority-owned joint venture during fiscal 2016. The put arrangement for Guess CIS, representing 30% of the total outstanding equity interest of that subsidiary, may be exercised at the discretion of the noncontrolling interest holder by providing written notice to the Company during the period beginning after the fifth anniversary of the agreement through December 31, 2025, or sooner in certain limited circumstances. The redemption value of the Guess CIS put arrangement is based on a multiple of Guess CIS’s earnings before interest, taxes, depreciation and amortization subject to certain adjustments and is classified as a redeemable noncontrolling interest outside of permanent equity in the Company’s condensed consolidated balance sheet. During fiscal 2018, the Company and the noncontrolling interest holder made additional capital contribution totaling $3.2 million, of which $2.2 million was paid by the Company and the remaining amount was paid by the noncontrolling interest holder to retain the same pro-rata interest in Guess CIS. The carrying value of the redeemable noncontrolling interest related to Guess CIS was $3.4 million and $4.0 million as of November 3, 2018 and February 3, 2018, respectively.

Accounts Receivable

9 Months Ended

Nov. 03, 2018

Receivables [Abstract]

Accounts Receivable

Accounts receivable is summarized as follows (in thousands):



	Nov 3, 2018		Feb 3, 2018
Trade	$	282,919	$	290,478
Royalty	8,437		5,504
Other	6,453		13,233
	297,809		309,215
Less allowances¹	11,703		49,219
	$	286,106	$	259,996

__________________________________

Notes:

As of February 3, 2018, the accounts receivable allowance included allowances for doubtful accounts, wholesale sales returns and wholesale markdowns. During the first quarter of fiscal 2019, the Company adopted a new revenue recognition standard on a modified retrospective basis which changed the presentation of allowances for wholesale sales returns and wholesale markdowns to be classified within accrued expenses rather than as a reduction to accounts receivable. Accordingly, the Company has included allowances of $26.1 million and $11.2 million related to wholesale sales returns and wholesale markdowns, respectively, in accrued expenses as of November 3, 2018. As of November 3, 2018, the accounts receivable allowance was only related to allowances for doubtful accounts. Refer to Notes 1 and 2 for further information regarding the impact from the adoption of the new revenue recognition standard on the Company’s condensed consolidated financial statements and related disclosures during the third quarter of fiscal 2019.

Accounts receivable consists of trade receivables relating primarily to the Company’s wholesale business in Europe and, to a lesser extent, to its wholesale businesses in the Americas and Asia, royalty receivables relating to its licensing operations, credit card and retail concession receivables related to its retail businesses and certain other receivables. Other receivables generally relate to amounts due to the Company that result from activities that are not related to the direct sale of the Company’s products or collection of royalties.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Inventories

9 Months Ended

Nov. 03, 2018

Inventory Disclosure [Abstract]

Inventories

Inventories consist of the following (in thousands):



	Nov 3, 2018		Feb 3, 2018
Raw materials	$	1,360	$	604
Work in progress	166		16
Finished goods¹	546,991		427,684
	$	548,517	$	428,304

__________________________________

Notes:

During the first quarter of fiscal 2019, the Company adopted a new revenue recognition standard on a modified retrospective basis which changed the presentation of the estimated cost associated with the allowance for sales returns to be included within other current assets rather than included in inventories. Accordingly, the Company has included $10.4 million related to the estimated cost associated with the allowance for sales returns in other current assets as of November 3, 2018. Refer to Notes 1 and 2 for further information regarding the impact from the adoption of the new revenue recognition standard on the Company’s condensed consolidated financial statements and related disclosures during the third quarter of fiscal 2019.

The above balances include an allowance to write down inventories to the lower of cost or net realizable value of $26.7 million and $29.9 million as of November 3, 2018 and February 3, 2018, respectively.

Income Taxes	9 Months Ended
Income Taxes	Nov. 03, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income tax expense for the interim periods was computed using the tax rate estimated to be applicable for the full fiscal year, adjusted for discrete items. The Company’s effective income tax rate was 61.7% for the nine months ended November 3, 2018, compared to 508.6% for the nine months ended October 28, 2017. The improvement in the effective income tax rate during the nine months ended November 3, 2018 was due primarily to the revision of provisional amounts recorded related to the impact of the 2017 Tax Cuts and Jobs Act in the U.S. (referred to herein as the “Tax Reform”) as discussed further below, lower losses during the nine months ended November 3, 2018 in jurisdictions in which the Company has valuation allowances, the impact of discrete non-deductible expenses as compared to the same prior-year period and, to a lesser extent, the reversal of a valuation allowance on certain deferred taxes. In December 2017, the U.S. government enacted the Tax Reform, which significantly changed the U.S. corporate income tax laws, including lowering the U.S. federal corporate income tax rate from 35% to 21% and requiring a one-time mandatory transition tax on accumulated foreign earnings. The Tax Reform also establishes new tax laws that are effective for calendar 2018, including but not limited to (i) a new provision designed to tax global intangible low-taxed income (“GILTI”), (ii) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries, (iii) a limitation on deductible interest expense and (iv) limitations on the deductibility of certain executive compensation. Any income tax payable related to the transition tax is due over an eight-year period beginning in calendar 2018. The SEC issued authoritative guidance which addresses accounting for the impact of the Tax Reform. This guidance provides a measurement period, which should not extend beyond one year from the enactment date, during which the Company may finalize the accounting for the impacts of the Tax Reform, and allows for the Company to record provisional estimates of such amounts. Based on the Company’s interpretation of the Tax Reform, reasonable estimates were made to record provisional adjustments during the fourth quarter of fiscal 2018. During the third quarter of fiscal 2019, the Company completed the preparation of its U.S. federal tax return for the fiscal year 2018 and concluded, based on the additional information that has become available, that no transition tax is due. As a result, during the three months ended November 3, 2018, the Company revised its provisional amount initially recorded in the three months ended February 3, 2018 related to the Tax Reform and recognized a tax benefit of $19.6 million. The Company will continue to refine such amounts within the measurement period allowed if and when additional interpretations are issued. On November 28, 2018, the U.S. Internal Revenue Service (“IRS”) announced a proposed regulation to revise the section of the underlying IRS code which gave rise to the Company’s change in the provisional calculation. In the event legislation is passed in the future to revise the relevant IRS code section, the Company could have additional tax expense and tax liabilities of approximately $12.8 million. In accordance with current legislation, such charges would be payable over the next seven years. The Company had no amounts recorded in the condensed consolidated balance sheet related to the transition tax in accrued expenses or other long-term liabilities as of November 3, 2018. The Company included $1.9 million and $17.7 million related to the transition tax in accrued expenses and other long-term liabilities in its condensed consolidated balance sheets as of February 3, 2018, respectively. From time-to-time, the Company is subject to routine income tax audits on various tax matters around the world in the ordinary course of business. As of November 3, 2018, several income tax audits were underway for various periods in multiple jurisdictions. The Company accrues an amount for its estimate of additional income tax liability which the Company, more likely than not, will incur as a result of the ultimate resolution of income tax audits (“uncertain tax positions”). The Company reviews and updates the estimates used in the accrual for uncertain tax positions as more definitive information becomes available from taxing authorities, upon completion of tax audits, upon expiration of statutes of limitation, or upon occurrence of other events. The Company had aggregate accruals for uncertain tax positions, including penalties and interest, of $18.4 million and $19.0 million as of November 3, 2018 and February 3, 2018, respectively.

Segment Information

9 Months Ended

Nov. 03, 2018

Segment Reporting [Abstract]

Segment Information

The Company’s businesses are grouped into five reportable segments for management and internal financial reporting purposes: Americas Retail, Americas Wholesale, Europe, Asia and Licensing. The Company’s Americas Retail, Americas Wholesale, Europe and Licensing reportable segments are the same as their respective operating segments. Certain components of the Company’s Asia operating segment are separate operating segments based on region, which have been aggregated into the Asia reportable segment for disclosure purposes. Management evaluates segment performance based primarily on revenues and earnings (loss) from operations before corporate performance-based compensation costs, net gains (losses) from lease terminations, asset impairment charges, restructuring charges, and other non-recurring charges, if any. The Company believes this segment reporting reflects how its business segments are managed and how each segment’s performance is evaluated by the Company’s chief operating decision maker to assess performance and make resource allocation decisions. The Americas Retail segment includes the Company’s retail and e-commerce operations in North, South and Central America. The Americas Wholesale segment includes the Company’s wholesale operations in the Americas. The Europe segment includes the Company’s retail, e-commerce and wholesale operations in Europe and the Middle East. The Asia segment includes the Company’s retail, e-commerce and wholesale operations in Asia and the Pacific. The Licensing segment includes the worldwide licensing operations of the Company. The business segment operating results exclude corporate overhead costs, which consist of shared costs of the organization, net gains (losses) on lease terminations, asset impairment charges and restructuring charges. Corporate overhead costs are presented separately and generally include, among other things, the following unallocated corporate costs: accounting and finance, executive compensation, corporate performance-based compensation, facilities, global advertising and marketing, human resources, information technology and legal.

Net revenue and loss from operations are summarized as follows for the three and nine months ended November 3, 2018 and October 28, 2017 (in thousands):



	Three Months Ended						Nine Months Ended
	Nov 3, 2018			Oct 28, 2017			Nov 3, 2018			Oct 28, 2017
Net revenue:
Americas Retail	$	186,925		$	187,021		$	555,390		$	561,903
Americas Wholesale	52,698			45,636			127,630			114,151
Europe	254,037			221,230			771,470			641,833
Asia	89,461			74,322			256,298			200,436
Licensing^1,2	22,286			20,744			61,779			53,267
Total net revenue^1,2	$	605,407		$	548,953		$	1,772,567		$	1,571,590
Earnings (loss) from operations:
Americas Retail^2,3	$	3,799		$	(2,414	)	$	3,701		$	(27,550	)
Americas Wholesale^2,3	10,392			8,562			21,743			20,783
Europe^3,4	7,410			9,095			17,608			38,147
Asia³	1,938			2,954			7,637			5,734
Licensing^2,3	19,485			18,346			54,408			46,196
Total segment earnings from operations^2,4	43,024			36,543			105,097			83,310
Corporate overhead^2,4	(20,824		)	(23,443		)	(72,316		)	(67,403		)
Net gains (losses) on lease terminations⁵	—			(11,494		)	152			(11,494		)
Asset impairment charges⁶	(1,277		)	(2,018		)	(5,017		)	(6,013		)
European Commission fine⁷	(42,428		)	—			(42,428		)	—
Total loss from operations^2,4	$	(21,505	)	$	(412	)	$	(14,512	)	$	(1,600	)

__________________________________

Notes:

During the fourth quarter of fiscal 2018, the Company reclassified net royalties received on the Company’s inventory purchases of licensed product from net revenue to cost of product sales to reflect its treatment as a reduction of the cost of such licensed product. Accordingly, net revenue for the three and nine months ended October 28, 2017 has been adjusted to conform to the current period presentation. This reclassification had no impact on previously reported loss from operations.

During the first quarter of fiscal 2019, the Company adopted a comprehensive new revenue recognition standard using a modified retrospective method that does not restate prior periods to be comparable to the current period presentation. The adoption of this guidance primarily impacted the presentation of advertising contributions received from the Company’s licensees and the related advertising expenditures incurred by the Company. The adoption of this guidance resulted in an increase in net royalty revenue within the Company’s Licensing segment of $2.7 million, as well as an increase in SG&A expenses in our Americas Retail, Americas Wholesale and Licensing segments as well as corporate overhead of $1.0 million, $0.6 million, $0.3 million and $0.6 million, respectively, during the three months ended November 3, 2018 compared to the same prior-year period. The net favorable impact on loss from operations was approximately $0.2 million during the three months ended November 3, 2018 compared to the same prior-year period. During the nine months ended November 3, 2018, the adoption of this guidance resulted in an increase in net royalty revenue within the Company’s Licensing segment of $7.1 million, as well as an increase in SG&A expenses in our Americas Retail, Americas Wholesale and Licensing segments as well as corporate overhead of $3.3 million, $1.5 million, $0.7 million and $1.7 million, respectively, during the nine months ended November 3, 2018 compared to the same prior-year period. The net unfavorable impact on loss from operations was approximately $0.1 million during the nine months ended November 3, 2018 compared to the same prior-year period. Refer to Note 1 for more information regarding the impact from the adoption of this new standard.

During the first quarter of fiscal 2019, the Company changed the segment accountability for funds received from licensees on the Company’s purchases of its licensed products. These amounts were treated as a reduction of cost of product sales within the Licensing segment but now are considered in the results of the segments that control the respective purchases for purposes of segment performance evaluation. Accordingly, segment results for the three and nine months ended October 28, 2017 have been adjusted to conform to the current period presentation.

⁴

During the first quarter of fiscal 2019, the Company adopted new authoritative guidance which requires that the non-service components of net periodic defined benefit pension cost be presented outside of earnings (loss) from operations. Accordingly, loss from operations and segment results for the three and nine months ended October 28, 2017 have been adjusted to conform to the current period presentation.

⁵

During the nine months ended November 3, 2018, the Company recorded net gains on lease terminations related primarily to the early termination of certain lease agreements in North America. The net gains on lease terminations were recorded during the three months ended May 5, 2018. During the nine months ended October 27, 2018, the Company recorded net losses on lease termination related primarily to the modification of certain lease agreements held with a common landlord in North America. Refer to Note 1 for more information regarding the net gains (losses) on lease terminations.


⁶	During each of the periods presented, the Company recognized asset impairment charges for certain retail locations resulting from under-performance and expected store closures. Refer to Note 14 for more information regarding these asset impairment charges.


⁷	During the third quarter of fiscal 2019, the Company recorded a charge of €37.0 million euro ($42.4 million) related to an estimated fine expected to be imposed on the Company by the European Commission related to its inquiry concerning possible violations of European Union competition rules by the Company. Refer to Note 12 for further information.

The table below presents information regarding geographic areas in which the Company operated. Net revenue is classified primarily based on the country where the Company’s customer is located (in thousands):



	Three Months Ended				Nine Months Ended
	Nov 3, 2018		Oct 28, 2017		Nov 3, 2018		Oct 28, 2017
Net revenue:
U.S.	$	181,113	$	170,068	$	519,547	$	507,239
Italy	65,050		67,561		213,336		195,955
Canada	49,961		53,381		136,296		142,905
South Korea	40,623		41,709		114,706		114,547
Other foreign countries	268,660		216,234		788,682		610,944
Total net revenue	$	605,407	$	548,953	$	1,772,567	$	1,571,590

Due to the seasonal nature of the Company’s business segments, the above net revenue and operating results are not necessarily indicative of the results that may be expected for the full fiscal year.

Borrowings and Capital Lease Obligations

9 Months Ended

Nov. 03, 2018

Debt Disclosure [Abstract]

Borrowings and Capital Lease Obligations

Borrowings and capital lease obligations are summarized as follows (in thousands):



	Nov 3, 2018		Feb 3, 2018
Mortgage debt, maturing monthly through January 2026	$	19,885	$	20,323
Capital lease obligations	17,031		18,589
Other	2,876		3,129
	39,792		42,041
Less current installments	3,538		2,845
Long-term debt and capital lease obligations	$	36,254	$	39,196

Mortgage Debt

On February 16, 2016, the Company entered into a ten-year $21.5 million real estate secured loan (the “Mortgage Debt”). The Mortgage Debt is secured by the Company’s U.S. distribution center based in Louisville, Kentucky and provides for monthly principal and interest payments based on a 25-year amortization schedule, with the remaining principal balance and any accrued and unpaid interest due at maturity. Outstanding principal balances under the Mortgage Debt bear interest at the one-month LIBOR rate plus 1.5%. As of November 3, 2018, outstanding borrowings under the Mortgage Debt, net of debt issuance costs of $0.1 million, were $19.9 million. At February 3, 2018, outstanding borrowings under the Mortgage Debt, net of debt issuance costs of $0.1 million, were $20.3 million.

The Mortgage Debt requires the Company to comply with a fixed charge coverage ratio on a trailing four-quarter basis if consolidated cash, cash equivalents, short-term investment balances and availability under borrowing arrangements fall below certain levels. In addition, the Mortgage Debt contains customary covenants, including covenants that limit or restrict the Company’s ability to incur liens on the mortgaged property and enter into certain contractual obligations. Upon the occurrence of an event of default under the Mortgage Debt, the lender may terminate the Mortgage Debt and declare all amounts outstanding to be immediately due and payable. The Mortgage Debt specifies a number of events of default (some of which are subject to applicable grace or cure periods), including, among other things, non-payment defaults, covenant defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency defaults and material judgment defaults.

On February 16, 2016, the Company also entered into a separate interest rate swap agreement, designated as a cash flow hedge, that resulted in a swap fixed rate of approximately 3.06%. This interest rate swap agreement matures in January 2026 and converts the nature of the Mortgage Debt from LIBOR floating-rate debt to fixed-rate debt. The fair values of the interest rate swap asset as of November 3, 2018 and February 3, 2018 were approximately $1.7 million and $1.5 million, respectively.

Capital Lease Obligations

During fiscal 2018, the Company began the relocation of its European distribution center to the Netherlands. As a result, the Company entered into a capital lease of $17.0 million for equipment used in the new facility. The capital lease primarily provides for monthly minimum lease payments through May 2027 with an effective interest rate of approximately 6%. As of November 3, 2018 and February 3, 2018, the capital lease obligation was $14.9 million and $17.3 million, respectively.

The Company also has smaller capital leases related primarily to computer hardware and software. As of November 3, 2018 and February 3, 2018, these capital lease obligations totaled $2.1 million and $1.3 million, respectively.

Credit Facilities

On June 23, 2015, the Company entered into a five-year senior secured asset-based revolving credit facility with Bank of America, N.A. and the other lenders party thereto (the “Credit Facility”). The Credit Facility provides for a borrowing capacity in an amount up to $150 million, including a Canadian sub-facility up to $50 million, subject to a borrowing base. Based on applicable accounts receivable, inventory, eligible cash balances and relevant covenant restrictions as of November 3, 2018, the Company could have borrowed up to $134 million under the Credit Facility. The Credit Facility has an option to expand the borrowing capacity by up to $150 million subject to certain terms and conditions, including the willingness of existing or new lenders to assume such increased amount. The Credit Facility is available for direct borrowings and the issuance of letters of credit, subject to certain letters of credit sublimits, and may be used for working capital and other general corporate purposes.

All obligations under the Credit Facility are unconditionally guaranteed by the Company and the Company’s existing and future domestic and Canadian subsidiaries, subject to certain exceptions, and are secured by a first priority lien on substantially all of the assets of the Company and such domestic and Canadian subsidiaries, as applicable.

Direct borrowings under the Credit Facility made by the Company and its domestic subsidiaries shall bear interest at the U.S. base rate plus an applicable margin (varying from 0.25% to 0.75%) or at LIBOR plus an applicable margin (varying from 1.25% to 1.75%). The U.S. base rate is based on the greater of (i) the U.S. prime rate, (ii) the federal funds rate, plus 0.5%, and (iii) LIBOR for a 30-day interest period, plus 1.0%. Direct borrowings under the Credit Facility made by the Company’s Canadian subsidiaries shall bear interest at the Canadian prime rate plus an applicable margin (varying from 0.25% to 0.75%) or at the Canadian BA rate plus an applicable margin (varying from 1.25% to 1.75%). The Canadian prime rate is based on the greater of (i) the Canadian prime rate, (ii) the Bank of Canada overnight rate, plus 0.5%, and (iii) the Canadian BA rate for a one-month interest period, plus 1.0%. The applicable margins are calculated quarterly and vary based on the average daily availability of the aggregate borrowing base. The Company is also obligated to pay certain commitment, letter of credit and other fees customary for a credit facility of this size and type. As of November 3, 2018, the Company had $2.0 million in outstanding standby letters of credit, no outstanding documentary letters of credit and no outstanding borrowings under the Credit Facility.

The Credit Facility requires the Company to comply with a fixed charge coverage ratio on a trailing four-quarter basis if a default or an event of default occurs under the Credit Facility or generally if borrowings exceed 80% of the borrowing base. In addition, the Credit Facility contains customary covenants, including covenants that limit or restrict the Company and certain of its subsidiaries’ ability to: incur liens, incur indebtedness, make investments, dispose of assets, make certain restricted payments, merge or consolidate and enter into certain transactions with affiliates. Upon the occurrence of an event of default under the Credit Facility, the lenders may cease making loans, terminate the Credit Facility and declare all amounts outstanding to be immediately due and payable. The Credit Facility specifies a number of events of default (some of which are subject to applicable grace or cure periods), including, among other things, non-payment defaults, covenant defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency defaults and material judgment defaults. The Credit Facility allows for both secured and unsecured borrowings outside of the Credit Facility up to specified amounts.

The Company, through its European subsidiaries, maintains short-term committed and uncommitted borrowing agreements, primarily for working capital purposes, with various banks in Europe. As of November 3, 2018, the Company could have borrowed or entered into documentary letters of credit totaling up to $87.1 million under these agreements. As of November 3, 2018, the Company had no outstanding borrowings or outstanding documentary letters of credit under these agreements. The agreements are denominated primarily in euros and provide for annual interest rates ranging from 1.1% to 5.0%. With the exception of one facility for up to $39.9 million that has a minimum net equity requirement, there are no other financial ratio covenants.

Other

From time-to-time, the Company will obtain other financing in foreign countries for working capital to finance its local operations.

Share-Based Compensation

9 Months Ended

Nov. 03, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

The following table summarizes the share-based compensation expense recognized under all of the Company’s stock plans during the three and nine months ended November 3, 2018 and October 28, 2017 (in thousands):



	Three Months Ended				Nine Months Ended
	Nov 3, 2018		Oct 28, 2017		Nov 3, 2018		Oct 28, 2017
Stock options	$	824	$	571	$	2,191	$	1,761
Stock awards/units	3,692		3,658		10,154		10,539
Employee Stock Purchase Plan	29		31		189		110
Total share-based compensation expense	$	4,545	$	4,260	$	12,534	$	12,410

Unrecognized compensation cost related to nonvested stock options and nonvested stock awards/units totaled approximately $4.2 million and $27.2 million, respectively, as of November 3, 2018. This cost is expected to be recognized over a weighted average period of 1.6 years. The weighted average grant date fair value of stock options granted was $5.89 and $1.57 during the nine months ended November 3, 2018 and October 28, 2017, respectively.

Grants

On June 25, 2018, the Company granted select key management 619,578 nonvested stock units which are subject to certain performance-based vesting or market-based vesting conditions. On April 28, 2017, the Company granted select key management 1,056,042 nonvested stock units which are subject to certain performance-based vesting or market-based vesting conditions.

Annual Grants

On March 30, 2018, the Company made an annual grant of 431,371 stock options and 490,528 nonvested stock awards/units to its employees. On March 29, 2017, the Company made an annual grant of 1,283,175 stock options and 707,675 nonvested stock awards/units to its employees.

Performance-Based Awards

The Company has granted certain nonvested stock units subject to performance-based vesting conditions to select executive officers. Each award of nonvested stock units generally has an initial vesting period from the date of the grant through either (i) the end of the first fiscal year or (ii) the first anniversary of the date of grant, followed by annual vesting periods which may range from two-to-three years.

The Company has also granted a target number of nonvested stock units to select key management, including certain executive officers. The number of shares that may ultimately vest with respect to each award may range from 0% up to 200% of the target number of shares, subject to the achievement of certain performance-based vesting conditions. Any shares that are ultimately issued are scheduled to vest at the end of the third fiscal year following the grant date.

The following table summarizes the activity for nonvested performance-based units during the nine months ended November 3, 2018:



	Number of Units		Weighted Average Grant Date Fair Value
Nonvested at February 3, 2018	1,300,921		$	14.01
Granted	489,646		21.83
Vested	(141,625	)	15.07
Forfeited	(52,312	)	15.37
Nonvested at November 3, 2018	1,596,630		$	16.27

Market-Based Awards

The Company has granted certain nonvested stock units subject to market-based vesting conditions to select executive officers. The number of shares that may ultimately vest will equal 0% to 150% of the target number of shares, subject to the performance of the Company’s total stockholder return (“TSR”) relative to the TSR of a select group of peer companies over a three-year period. Vesting is also subject to continued service requirements through the vesting date.

The following table summarizes the activity for nonvested market-based units during the nine months ended November 3, 2018:



	Number of Units	Weighted Average Grant Date Fair Value
Nonvested at February 3, 2018	388,477	$	12.28
Granted	129,932	20.28
Vested	—	—
Forfeited	—	—
Nonvested at November 3, 2018	518,409	$	14.28

Related Party Transactions	9 Months Ended
Related Party Transactions	Nov. 03, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company and its subsidiaries periodically enter into transactions with other entities or individuals that are considered related parties, including certain transactions with entities affiliated with trusts for the respective benefit of Paul Marciano, who is an executive and member of the Board of the Company, and Maurice Marciano, Chairman of the Board, and certain of their children (the “Marciano Trusts”). Leases The Company leases warehouse and administrative facilities, including the Company’s corporate headquarters in Los Angeles, California, from partnerships affiliated with the Marciano Trusts and certain of their affiliates. There were four of these leases in effect as of November 3, 2018 with expiration or option exercise dates ranging from calendar years 2018 to 2020. Aggregate rent, common area maintenance charges and property tax expense recorded under these four related party leases were approximately $3.7 million and $3.6 million for the nine months ended November 3, 2018 and October 28, 2017, respectively. The Company believes that the terms of the related party leases have not been significantly affected by the fact that the Company and the lessors are related. Aircraft Arrangements The Company periodically charters aircraft owned by entities affiliated with the Marciano Trusts (the “Aircraft Entities”), through informal arrangements with the Aircraft Entities and independent third-party management companies contracted by the Aircraft Entities to manage their aircraft. The total fees paid under these arrangements for the nine months ended November 3, 2018 and October 28, 2017 were approximately $1.0 million and $0.7 million, respectively. These related party disclosures should be read in conjunction with the disclosure concerning related party transactions in the Company’s Annual Report on Form 10-K for the year ended February 3, 2018.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Nov. 03, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases The Company leases its showrooms, advertising, licensing, sales and merchandising offices, remote distribution and warehousing facilities and retail and factory outlet store locations under operating lease agreements expiring on various dates through December 2037. Some of these leases require the Company to make periodic payments for property taxes, utilities and common area operating expenses. Certain retail store leases provide for rents based upon the minimum annual rental amount and a percentage of annual sales volume, generally ranging from 4% to 20%, when specific sales volumes are exceeded. The Company’s retail concession leases also provide for rents primarily based upon a percentage of annual sales volume which average approximately 35% of annual sales volume. Some leases include lease incentives, rent abatements and fixed rent escalations, which are amortized and recorded over the initial lease term on a straight-line basis. The Company also leases some of its equipment under operating lease agreements expiring at various dates through October 2023. As discussed in further detail in Note 9, the Company leases equipment as well as computer hardware and software under capital lease obligations. Investment Commitments As of November 3, 2018, the Company had an unfunded commitment to invest €3.6 million ($4.1 million) in a private equity fund. Refer to Note 14 for further information. Legal and Other Proceedings The Company is involved in legal proceedings, arising both in the ordinary course of business and otherwise, including the proceedings described below as well as various other claims and other matters incidental to the Company’s business. Unless otherwise stated, the resolution of any particular proceeding is not currently expected to have a material adverse impact on the Company’s financial position or results of operations. Even if such an impact could be material, we may not be able to estimate the reasonably possible loss or range of loss until developments in the proceedings have provided sufficient information to support an assessment. On May 6, 2009, Gucci America, Inc. filed a complaint in the U.S. District Court for the Southern District of New York against Guess?, Inc. and certain third-party licensees for the Company asserting, among other things, trademark and trade dress law violations and unfair competition. The complaint sought injunctive relief, compensatory damages, including treble damages, and certain other relief. Complaints similar to those in the above action were subsequently filed by Gucci entities against the Company and certain of its subsidiaries in the Court of Milan, Italy, the Intermediate People’s Court of Nanjing, China and the Court of Paris, France. The three-week bench trial in the U.S. matter concluded on April 19, 2012, with the court issuing a preliminary ruling on May 21, 2012 and a final ruling on July 19, 2012. Although the plaintiff was seeking compensation in the U.S. matter in the form of damages of $26 million and an accounting of profits of $99 million, the final ruling provided for monetary damages of $2.3 million against the Company and $2.3 million against certain of its licensees. The court also granted narrow injunctions in favor of the plaintiff for certain of the claimed infringements. On August 20, 2012, the appeal period expired without any party having filed an appeal, rendering the judgment final. On May 2, 2013, the Court of Milan ruled in favor of the Company in the Milan, Italy matter. In the ruling, the Court rejected all of the plaintiff’s claims and ordered the cancellation of three of the plaintiff’s Italian and four of the plaintiff’s European Community trademark registrations. On June 10, 2013, the plaintiff appealed the Court’s ruling in the Milan matter. On September 15, 2014, the Court of Appeal of Milan affirmed the majority of the lower Court’s ruling in favor of the Company, but overturned the lower Court’s finding with respect to an unfair competition claim. That portion of the matter moved to a damages phase based on the ruling. On October 16, 2015, the plaintiff appealed the remainder of the Court of Appeal of Milan’s ruling in favor of the Company to the Italian Supreme Court of Cassation. In the China matter, the Intermediate People’s Court of Nanjing, China issued a ruling on November 8, 2013 granting an injunction in favor of the plaintiff for certain of the claimed infringements on handbags and small leather goods and awarding the plaintiff statutory damages in the amount of approximately $80,000. The Company strongly disagreed with the Court’s decision and appealed the ruling. On August 31, 2016, the Court of Appeal for the China matter issued a decision in favor of the Company, rejecting all of the plaintiff’s claims. In March 2017, the plaintiff petitioned the China Supreme Court for a retrial of the matter. On January 30, 2015, the Court of Paris ruled in favor of the Company in the France matter, rejecting all of the plaintiff’s claims and partially canceling two of the plaintiff’s community trademark registrations and one of the plaintiff’s international trademark registrations. On February 17, 2015, the plaintiff appealed the Court of Paris’ ruling. In April 2018, the parties entered into an agreement to settle all pending worldwide intellectual property litigation and trademark office matters between the parties and their subsidiaries, including the previously active litigation matters in Italy, China and France. As part of the settlement, the parties agreed on the use of various design elements by each party on a go-forward basis. The settlement did not have a significant impact on the Company’s financial results, and the terms of the settlement are not expected to have a negative impact on the Company’s business operations going forward. The Company has received customs tax assessment notices from the Italian Customs Agency (“ICA”) regarding its customs tax audit of one of the Company’s European subsidiaries for the period from July 2010 through December 2012. Such assessments totaled €9.8 million ($11.4 million), including potential penalties and interest. The Company strongly disagreed with the ICA’s positions and therefore filed appeals with the Milan First Degree Tax Court (“MFDTC”). Those appeals were split into a number of different cases that were then heard by different sections of the MFDTC. The MFDTC ruled in favor of the Company on all of these appeals. The ICA subsequently appealed €9.7 million ($11.0 million) of these favorable MFDTC judgments with the Appeals Court. To date, €6.3 million ($7.2 million) have been decided in favor of the Company, €1.3 million ($1.4 million) have been decided in favor of the ICA, and €2.1 million ($2.4 million) remain pending. The Company believes that the unfavorable Appeals Court ruling is incorrect and inconsistent with the prior rulings on similar matters by both the MFDTC and other judges within the Appeals Court, and plans to appeal the decision to the Supreme Court. The ICA has appealed the favorable Appeals Court rulings to the Supreme Court. There can be no assurances the Company will be successful in the remaining appeals. It also continues to be possible that the Company will receive similar or even larger assessments for periods subsequent to December 2012 or other claims or charges related to the matter in the future. Although the Company believes that it has a strong position and will continue to vigorously defend this matter, it is unable to predict with certainty whether or not these efforts will ultimately be successful or whether the outcome will have a material impact on the Company’s financial position or results of operations. On June 6, 2017, the European Commission notified the Company that it had initiated proceedings to investigate whether certain of the Company’s practices and agreements concerning the distribution of apparel and accessories within the European Union breached European Union competition rules related to cross-border transactions, internet sales limitations and resale price restrictions. The Company has cooperated with the European Commission, including through responses to requests for information, through changes to certain business practices and agreements and by engaging in a settlement discussion process. Depending on the outcome of the proceedings, a broad range of remedies is available to the European Commission, including imposing a fine and/or injunctive relief prohibiting or restricting certain business practices. The Company has already made certain changes to its business practices and agreements in response to, and early in the course of, these proceedings, and the Company believes that such changes have not had, and will not have, a material impact on its ongoing business operations within the European Union. Based on the settlement discussion process, the Company now believes that it is likely to incur a fine in an amount between €37.0 million ($42.4 million) and €40.6 million ($46.6 million) with no further modifications of the Company’s business practices and agreements beyond those already made. Accordingly, the Company accrued an estimated charge of €37.0 million ($42.4 million) during the third quarter of fiscal 2019. A final outcome in this matter could occur as early as the fourth quarter of fiscal 2019, although any resolution may be delayed or different than current expectations due to the inherent unpredictability of the proceedings.

Defined Benefit Plans

9 Months Ended

Nov. 03, 2018

Defined Benefit Plan [Abstract]

Defined Benefit Plans

Supplemental Executive Retirement Plan

On August 23, 2005, the Board of Directors of the Company adopted a Supplemental Executive Retirement Plan (“SERP”) which became effective January 1, 2006. The SERP provides select employees who satisfy certain eligibility requirements with certain benefits upon retirement, termination of employment, death, disability or a change in control of the Company, in certain prescribed circumstances.

As a non-qualified pension plan, no dedicated funding of the SERP is required; however, the Company has made periodic payments into insurance policies held in a rabbi trust to fund the expected obligations arising under the non-qualified SERP. The amount of any future payments into the insurance policies, if any, may vary depending on investment performance of the trust. The cash surrender values of the insurance policies were $61.6 million and $64.5 million as of November 3, 2018 and February 3, 2018, respectively, and were included in other assets in the Company’s condensed consolidated balance sheets. As a result of changes in the value of the insurance policy investments, the Company recorded unrealized loss of $2.3 million and $1.6 million in other expense during the three and nine months ended November 3, 2018, respectively, and unrealized gains of $1.6 million and $5.5 million in other income during the three and nine months ended October 28, 2017, respectively. The projected benefit obligation was $54.9 million and $54.8 million as of November 3, 2018 and February 3, 2018, respectively, and was included in accrued expenses and other long-term liabilities in the Company’s condensed consolidated balance sheets depending on the expected timing of payments. SERP benefit payments of $0.4 million and $1.3 million were made during the three and nine months ended November 3, 2018, respectively. SERP benefit payments of $0.4 million and $1.3 million were made during the three and nine months ended October 28, 2017, respectively.

Foreign Pension Plans

In certain foreign jurisdictions, primarily in Switzerland, the Company is required to guarantee the returns on Company-sponsored defined contribution plans in accordance with local regulations. These plans are typically government-mandated defined contribution plans that provide employees with a minimum investment return, and as such, are treated under pension accounting in accordance with authoritative guidance. Under the Swiss plan, both the Company and certain of its employees with annual earnings in excess of government determined amounts are required to make contributions into a fund managed by an independent investment fiduciary. The Company’s contributions must be made in an amount at least equal to the employee’s contribution. Minimum employee contributions are based on the respective employee’s age, salary and gender.

As of November 3, 2018 and February 3, 2018, the foreign pension plans had a total projected benefit obligation of $27.9 million and $26.4 million, respectively, and plan assets held in independent investment fiduciaries of $22.4 million and $21.4 million, respectively. The net liability of $5.5 million and $5.0 million was included in other long-term liabilities in the Company’s condensed consolidated balance sheets as of November 3, 2018 and February 3, 2018, respectively.

The components of net periodic defined benefit pension cost for the three and nine months ended November 3, 2018 and October 28, 2017 related to the Company’s defined benefit plans are as follows (in thousands):



	Three Months Ended Nov 3, 2018
	SERP		Foreign Pension Plans			Total
Service cost	$	—	$	730		$	730
Interest cost	471		54			525
Expected return on plan assets	—		(72		)	(72		)
Net amortization of unrecognized prior service credit	—		(7		)	(7		)
Net amortization of actuarial losses	47		103			150
Net periodic defined benefit pension cost	$	518	$	808		$	1,326



	Nine Months Ended Nov 3, 2018
	SERP		Foreign Pension Plans			Total
Service cost	$	—	$	2,224		$	2,224
Interest cost	1,415		164			1,579
Expected return on plan assets	—		(221		)	(221		)
Net amortization of unrecognized prior service credit	—		(21		)	(21		)
Net amortization of actuarial losses	140		313			453
Net periodic defined benefit pension cost	$	1,555	$	2,459		$	4,014



	Three Months Ended Oct 28, 2017
	SERP		Foreign Pension Plans			Total
Service cost	$	—	$	492		$	492
Interest cost	461		22			483
Expected return on plan assets	—		(48		)	(48		)
Net amortization of unrecognized prior service credit	—		(7		)	(7		)
Net amortization of actuarial losses	38		78			116
Net periodic defined benefit pension cost	$	499	$	537		$	1,036



	Nine Months Ended Oct 28, 2017
	SERP		Foreign Pension Plans			Total
Service cost	$	—	$	1,452		$	1,452
Interest cost	1,382		64			1,446
Expected return on plan assets	—		(143		)	(143		)
Net amortization of unrecognized prior service credit	—		(20		)	(20		)
Net amortization of actuarial losses	114		230			344
Net periodic defined benefit pension cost	$	1,496	$	1,583		$	3,079

During the first quarter of fiscal 2019, the Company adopted new authoritative guidance which requires that the non-service components of net periodic defined benefit pension cost be presented outside of loss from operations. The Company adopted this guidance on a retrospective basis and, as a result, reclassified approximately $0.5 million and $1.6 million from SG&A expenses to other income (expense) for the three and nine months ended October 28, 2017, respectively.

Fair Value Measurements

9 Months Ended

Nov. 03, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows:

Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that can be accessed at the measurement date.

Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e. interest rates, yield curves, etc.) and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3—Unobservable inputs that reflect assumptions about what market participants would use in pricing the asset or liability. These inputs would be based on the best information available, including the Company’s own data.

The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of November 3, 2018 and February 3, 2018 (in thousands):



	Fair Value Measurements at Nov 3, 2018								Fair Value Measurements at Feb 3, 2018
Recurring Fair Value Measures	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange currency contracts	$	—	$	7,527	$	—	$	7,527	$	—	$	51	$	—	$	51
Interest rate swap	—		1,707		—		1,707		—		1,460		—		1,460
Total	$	—	$	9,234	$	—	$	9,234	$	—	$	1,511	$	—	$	1,511
Liabilities:
Foreign exchange currency contracts	$	—	$	7	$	—	$	7	$	—	$	18,089	$	—	$	18,089
Deferred compensation obligations	—		14,197		—		14,197		—		13,476		—		13,476
Total	$	—	$	14,204	$	—	$	14,204	$	—	$	31,565	$	—	$	31,565

There were no transfers of financial instruments between the three levels of fair value hierarchy during the nine months ended November 3, 2018 or during the year ended February 3, 2018.

Foreign exchange currency contracts are entered into by the Company principally to hedge the future payment of inventory and intercompany transactions by non-U.S. subsidiaries. Periodically, the Company may also use foreign exchange currency contracts to hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries. The fair values of the Company’s foreign exchange currency contracts are based on quoted foreign exchange forward rates at the reporting date. The fair values of the Company’s interest rate swaps are based upon inputs corroborated by observable market data. Deferred compensation obligations to employees are adjusted based on changes in the fair value of the underlying employee-directed investments. Fair value of these obligations is based upon inputs corroborated by observable market data.

During fiscal 2018, the Company invested €0.5 million ($0.5 million) in a private equity fund. During the nine months ended November 3, 2018, the Company made additional investments totaling €0.9 million ($1.1 million). As permitted in accordance with authoritative guidance, the Company uses net asset value per share as a practical expedient to measure the fair value of this investment and has not included this investment in the fair value hierarchy as disclosed above. During the three months ended November 3, 2018, there were no changes in the value of the private equity investment. During the nine months ended November 3, 2018, the Company recorded an unrealized loss of €0.1 million ($0.2 million) in other expense. As of November 3, 2018 and February 3, 2018, the Company included €1.3 million ($1.4 million) and €0.5 million ($0.6 million), respectively, in other assets in the Company’s condensed consolidated balance sheet related to this investment. As of November 3, 2018, the Company had an unfunded commitment to invest an additional €3.6 million ($4.1 million) in the private equity fund.

The carrying amount of the Company’s remaining financial instruments, which principally include cash and cash equivalents, trade receivables, accounts payable and accrued expenses, approximates fair value due to the relatively short maturity of such instruments. The fair values of the Company’s debt instruments (see Note 9) are based on the amount of future cash flows associated with each instrument discounted using the Company’s incremental borrowing rate. As of November 3, 2018 and February 3, 2018, the carrying value of all financial instruments was not materially different from fair value, as the interest rates on the Company’s debt approximated rates currently available to the Company.

Long-Lived Assets

Long-lived assets, such as property and equipment, and purchased intangibles subject to amortization, are reviewed for impairment quarterly or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The majority of the Company’s long-lived assets relate to its retail operations which consist primarily of regular retail and flagship locations. The Company considers each individual regular retail location as an asset group for impairment testing, which is the lowest level at which individual cash flows can be identified. The asset group includes leasehold improvements, furniture, fixtures and equipment, computer hardware and software and certain long-term security deposits and lease acquisition costs. The Company reviews regular retail locations in penetrated markets for impairment risk once the locations have been opened for at least one year in their current condition, or sooner as changes in circumstances require. The Company believes that waiting at least one year allows a location to reach a maturity level where a more comprehensive analysis of financial performance can be performed. The Company evaluates impairment risk for regular retail locations in new markets, where the Company is in the early stages of establishing its presence, once brand awareness has been established. The Company also evaluates impairment risk for retail locations that are expected to be closed in the foreseeable future. The Company has flagship locations which are used as a regional marketing tool to build brand awareness and promote the Company’s current product. Impairment for these locations is tested at a reporting unit level similar to goodwill since they do not have separately identifiable cash flows.

An asset is considered to be impaired if the Company determines that the carrying value may not be recoverable based upon its assessment of the asset’s ability to continue to generate earnings from operations and positive cash flow in future periods or if significant changes in the Company’s strategic business objectives and utilization of the assets occurred. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the estimated fair value, which is determined based on discounted future cash flows. The impairment loss calculations require management to apply judgment in estimating future cash flows and the discount rates that reflect the risk inherent in future cash flows. Future expected cash flows for assets in regular retail locations are based on management’s estimates of future cash flows over the remaining lease period or expected life, if shorter. For expected location closures, the Company will evaluate whether it is necessary to shorten the useful life for any of the assets within the respective asset group. The Company will use this revised useful life when estimating the asset group’s future cash flows. The Company considers historical trends, expected future business trends and other factors when estimating the future cash flow for each regular retail location. The Company also considers factors such as: the local environment for each regular retail location, including mall traffic and competition; the Company’s ability to successfully implement strategic initiatives; and the ability to control variable costs such as cost of sales and payroll and, in some cases, renegotiate lease costs. The estimated cash flows used for this nonrecurring fair value measurement are considered a Level 3 input as defined above. 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.

The Company recorded asset impairment charges of $1.3 million and $5.0 million during the three and nine months ended November 3, 2018, respectively, and $2.0 million and $6.0 million during the three and nine months ended October 28, 2017, respectively. The asset impairment charges related primarily to the impairment of certain retail locations in Europe and North America resulting from under-performance and expected store closures.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivative Financial Instruments

9 Months Ended

Nov. 03, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Hedging Strategy

Foreign Exchange Currency Contracts

The Company operates in foreign countries, which exposes it to market risk associated with foreign currency exchange rate fluctuations. The Company has entered into certain forward contracts to hedge the risk of foreign currency rate fluctuations. The Company has elected to apply the hedge accounting rules in accordance with authoritative guidance for certain of these hedges.

The Company’s primary objective is to hedge the variability in forecasted cash flows due to the foreign currency risk. Various transactions that occur primarily in Europe, Canada, South Korea, China and Mexico are denominated in U.S. dollars, British pounds and Russian roubles and thus are exposed to earnings risk as a result of exchange rate fluctuations when converted to their functional currencies. These types of transactions include U.S. dollar denominated purchases of merchandise and U.S. dollar and British pound denominated intercompany liabilities. In addition, certain operating expenses, tax liabilities and pension-related liabilities are denominated in Swiss francs and are exposed to earnings risk as a result of exchange rate fluctuations when converted to the functional currency. The Company enters into derivative financial instruments, including forward exchange currency contracts, to offset some, but not all, of the exchange risk on certain of these anticipated foreign currency transactions.

Periodically, the Company may also use foreign exchange currency contracts to hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries.

Interest Rate Swap Agreements

The Company is exposed to interest rate risk on its floating-rate debt. The Company has entered into interest rate swap agreements to effectively convert its floating-rate debt to a fixed-rate basis. The principal objective of these contracts is to eliminate or reduce the variability of the cash flows in interest payments associated with the Company’s floating-rate debt, thus reducing the impact of interest rate changes on future interest payment cash flows. The Company has elected to apply the hedge accounting rules in accordance with authoritative guidance for certain of these contracts. Refer to Note 9 for further information.

The impact of the credit risk of the counterparties to the derivative contracts is considered in determining the fair value of the foreign exchange currency contracts and interest rate swap agreements. As of November 3, 2018, credit risk has not had a significant effect on the fair value of the Company’s foreign exchange currency contracts and interest rate swap agreements.

Hedge Accounting Policy

Foreign Exchange Currency Contracts

U.S. dollar forward contracts are used to hedge forecasted merchandise purchases over specific months. Changes in the fair value of these U.S. dollar forward contracts, designated as cash flow hedges, are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in cost of product sales in the period that approximates the time the hedged merchandise inventory is sold. The Company also hedges forecasted intercompany royalties over specific months. Changes in the fair value of these U.S. dollar forward contracts, designated as cash flow hedges, are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in other income (expense) in the period in which the royalty expense is incurred.

The Company has also used U.S. dollar forward contracts to hedge the net investments of certain of the Company’s international subsidiaries over specific months. Changes in the fair value of these U.S. dollar forward contracts, designated as net investment hedges, are recorded in foreign currency translation adjustment as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are not recognized in earnings (loss) until the sale or liquidation of the hedged net investment.

The Company also has foreign exchange currency contracts that are not designated as hedging instruments for accounting purposes. Changes in fair value of foreign exchange currency contracts not designated as hedging instruments are reported in net earnings (loss) as part of other income (expense).

Interest Rate Swap Agreements

Interest rate swap agreements are used to hedge the variability of the cash flows in interest payments associated with the Company’s floating-rate debt. Changes in the fair value of interest rate swap agreements designated as cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are amortized to interest expense over the term of the related debt.

Periodically, the Company may also enter into interest rate swap agreements that are not designated as hedging instruments for accounting purposes. Changes in the fair value of interest rate swap agreements not designated as hedging instruments are reported in net earnings (loss) as part of other income (expense).

Summary of Derivative Instruments

The fair value of derivative instruments in the condensed consolidated balance sheets as of November 3, 2018 and February 3, 2018 is as follows (in thousands):



	Derivative Balance Sheet Location	Fair Value at Nov 3, 2018		Fair Value at Feb 3, 2018
ASSETS:
Derivatives designated as hedging instruments:
Cash flow hedges:
Foreign exchange currency contracts	Other current assets/ Other assets	$	5,254	$	41
Interest rate swap	Other assets	1,707		1,460
Total derivatives designated as hedging instruments		6,961		1,501
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Other current assets	2,273		10
Total		$	9,234	$	1,511
LIABILITIES:
Derivatives designated as hedging instruments:
Cash flow hedges:
Foreign exchange currency contracts	Accrued expenses/ Other long-term liabilities	$	5	$	13,789
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Accrued expenses	2		4,300
Total		$	7	$	18,089

Derivatives Designated as Hedging Instruments

Foreign Exchange Currency Contracts Designated as Cash Flow Hedges

During the nine months ended November 3, 2018, the Company purchased U.S. dollar forward contracts in Europe totaling US$39.3 million that were designated as cash flow hedges. As of November 3, 2018, the Company had forward contracts outstanding for its European and Canadian operations of US$93.7 million and US$8.8 million, respectively, to hedge forecasted merchandise purchases, which are expected to mature over the next 10 months.

As of November 3, 2018, accumulated other comprehensive income (loss) related to foreign exchange currency contracts included a net unrealized gain of approximately $1.6 million, net of tax, which $0.8 million will be recognized in cost of product sales over the following 12 months, at the then current values on a pre-tax basis, which can be different than the current quarter-end values.

At February 3, 2018, the Company had forward contracts outstanding for its European and Canadian operations of US$145.8 million and US$38.7 million, respectively, that were designated as cash flow hedges.

Interest Rate Swap Agreement Designated as Cash Flow Hedge

During fiscal 2017, the Company entered into an interest rate swap agreement with a notional amount of $21.5 million, designated as a cash flow hedge, to hedge the variability of cash flows in interest payments associated with the Company’s floating-rate debt. This interest rate swap agreement matures in January 2026 and converts the nature of the Company’s real estate secured term loan from LIBOR floating-rate debt to fixed-rate debt, resulting in a swap fixed rate of approximately 3.06%.

As of November 3, 2018, accumulated other comprehensive income related to the interest rate swap agreement included a net unrealized gain of approximately $1.3 million, net of tax, which will be recognized in interest expense after the following 12 months, at the then current values on a pre-tax basis, which can be different than the current quarter-end values.

The following table summarizes the gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net loss for the three and nine months ended November 3, 2018 and October 28, 2017 (in thousands):



	Gains Recognized in OCI				Location of Gain (Loss) Reclassified from Accumulated OCI into Loss¹	Gain (Loss) Reclassified from Accumulated OCI into Loss
	Three Months Ended					Three Months Ended
	Nov 3, 2018		Oct 28, 2017			Nov 3, 2018			Oct 28, 2017
Derivatives designated as cash flow hedges:
Foreign exchange currency contracts	$	1,630	$	3,215	Cost of product sales	$	(1,618	)	$	81
Foreign exchange currency contracts	—		38		Other income (expense)	—			(337		)
Interest rate swap	203		134		Interest expense	21			(57		)



	Gains Recognized in OCI					Location of Gain (Loss) Reclassified from Accumulated OCI into Loss¹	Gain (Loss) Reclassified from Accumulated OCI into Loss
	Nine months ended						Nine months ended
	Nov 3, 2018		Oct 28, 2017				Nov 3, 2018			Oct 28, 2017
Derivatives designated as cash flow hedges:
Foreign exchange currency contracts	$	13,690	$	(10,601	)	Cost of product sales	$	(5,646	)	$	1,360
Foreign exchange currency contracts	2		(958		)	Other income (expense)	(201		)	(244		)
Interest rate swap	308		(143		)	Interest expense	60			(119		)

__________________________________

Notes:

The Company recognized gains of $0.6 million and $2.0 million resulting from the ineffective portion related to foreign exchange currency contracts in interest income during the three and nine months ended November 3, 2018, respectively. The Company recognized gains of $0.5 million and $2.0 million resulting from the ineffective portion related to foreign exchange currency contracts in interest income during the three and nine months ended October 28, 2017, respectively. There was no ineffectiveness recognized related to the interest rate swap during the three and nine months ended November 3, 2018 and October 28, 2017.

The following table summarizes net after-tax derivative activity recorded in accumulated other comprehensive income (loss) (in thousands):



	Three Months Ended						Nine Months Ended
	Nov 3, 2018			Oct 28, 2017			Nov 3, 2018			Oct 28, 2017
Beginning balance gain (loss)	$	(142	)	$	(8,751	)	$	(14,369	)	$	5,400
Net gains (losses) from changes in cash flow hedges	1,596			2,749			12,175			(10,220		)
Net (gains) losses reclassified into loss	1,419			235			5,067			(947		)
Ending balance gain (loss)	$	2,873		$	(5,767	)	$	2,873		$	(5,767	)

Foreign Exchange Currency Contracts Not Designated as Hedging Instruments

As of November 3, 2018, the Company had euro foreign exchange currency contracts to purchase US$28.0 million expected to mature over the next 6 months and Canadian dollar foreign exchange currency contracts to purchase US$1.8 million expected to mature over the next 2 months.

The following table summarizes the gains (losses) before taxes recognized on the derivative instruments not designated as hedging instruments in other income (expense) for the three and nine months ended November 3, 2018 and October 28, 2017 (in thousands):



	Location of Gain (Loss) Recognized in Loss	Gain (Loss) Recognized in Loss
		Three Months Ended				Nine Months Ended
		Nov 3, 2018		Oct 28, 2017		Nov 3, 2018		Oct 28, 2017
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Other income (expense)	$	794	$	1,645	$	6,700	$	(5,688	)

At February 3, 2018, the Company had euro foreign exchange currency contracts to purchase US$68.2 million and Canadian dollar foreign exchange currency contracts to purchase US$17.6 million.

Subsequent Events	9 Months Ended
Subsequent Events	Nov. 03, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Dividends On November 28, 2018, the Company announced a regular quarterly cash dividend of $0.225 per share on the Company’s common stock. The cash dividend will be paid on January 2, 2019 to shareholders of record as of the close of business on December 12, 2018.

Basis of Presentation and New Accounting Guidance (Policies)	9 Months Ended
	Nov. 03, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reclassifications	Reclassifications The Company has made certain reclassifications to prior year amounts to conform to the current period presentation within the accompanying notes to the condensed consolidated financial statements.
New Accounting Guidance	New Accounting Guidance Changes in Accounting Policies In May 2014, the Financial Accounting Standards Board (“FASB”) issued a comprehensive new revenue recognition standard which superseded previous existing revenue recognition guidance. The standard is intended to clarify the principles of recognizing revenue and create common revenue recognition guidance between GAAP and International Financial Reporting Standards. The standard also requires expanded disclosures surrounding revenue recognition. During fiscal 2017, the FASB issued additional clarification guidance on the new revenue recognition standard which also included certain scope improvements and practical expedients. The Company adopted this guidance (including clarification guidance issued) effective February 4, 2018 using the modified retrospective method and, as a result, recorded a cumulative adjustment to increase retained earnings by approximately $5.8 million, net of taxes. The adjustment related primarily to changes in the presentation of advertising contributions received from the Company’s licensees and the related advertising expenditures incurred by the Company. Under previous guidance, the Company recorded advertising contributions received from its licensees and the related advertising expenditures incurred by the Company on a net basis in its consolidated balance sheet. To the extent that the advertising contributions exceeded the Company’s advertising expenditures for its licensees, the excess contribution was treated as a deferred liability and was included in accrued expenses in the Company’s consolidated balance sheet. Under the new revenue recognition standard, advertising contributions and related advertising expenditures related to the Company’s licensing business are recorded on a gross basis in the Company’s condensed consolidated statements of loss. This change resulted in an increase to net revenue and selling, general, and administrative (“SG&A”) expenses of $2.7 million and $2.5 million, respectively, during the three months ended November 3, 2018 compared to the same prior-year period. During the nine months ended November 3, 2018, this change resulted in an increase to net revenue and SG&A expenses of $7.1 million and $7.2 million, respectively, compared to the same prior-year period. Other minor differences related to the timing of revenue recognition from the Company’s e-commerce operations, which are now recognized when merchandise is transferred to a common carrier rather than upon receipt by the customer, and a minimal change in the valuation of the amount that is deferred related to points earned under the Company’s loyalty programs. Additionally, allowances for wholesale sales returns and wholesale markdowns are now presented as accrued expenses rather than as reductions to accounts receivable, and the estimated cost associated with the allowance for sales returns is presented within other current assets rather than included in inventories in the Company’s condensed consolidated balance sheet. Refer to Note 2 for the Company’s expanded disclosures on revenue recognition. In January 2016, the FASB issued authoritative guidance which requires equity investments not accounted for under the equity method of accounting or consolidation accounting to be measured at fair value, with subsequent changes in fair value recognized in net income. In February 2018, the FASB issued additional clarification guidance which made targeted improvements to address certain aspects of recognition, measurement, presentation and disclosure requirements for financial instruments. The Company adopted this guidance (including the clarification guidance) effective February 4, 2018. The adoption of this guidance did not result in a cumulative-effect adjustment as of the beginning of the current year and did not have a material impact on the Company’s condensed consolidated financial statements or related disclosures. In October 2016, the FASB issued authoritative guidance which amends the accounting for income taxes on intra-entity transfers of assets other than inventory. This guidance requires that entities recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The income tax consequences on intra-entity transfers of inventory will continue to be deferred until the inventory has been sold to a third party. The Company adopted this guidance effective February 4, 2018. The adoption of this guidance did not have an impact on the Company’s condensed consolidated financial statements or related disclosures. In March 2017, the FASB issued authoritative guidance related to the presentation of net periodic pension cost in the income statement. This guidance requires that the service cost component of net periodic pension cost be presented in the same line as other compensation costs arising from services rendered by the employees during the period. The other non-service components of net periodic pension cost are required to be presented in the income statement separately from the service cost component and outside of earnings from operations. This guidance also allows for the service cost component to be eligible for capitalization when applicable. The Company adopted this guidance effective February 4, 2018 on a retrospective basis for the presentation of the service cost component and other non-service components of net periodic pension cost in the income statement and on a prospective basis for capitalization of the service cost component. As a result, the Company reclassified $0.5 million and $1.6 million from SG&A expenses to other income (expense) during the three and nine months ended October 28, 2017, respectively, which resulted in a related improvement in operating loss during each of the respective periods. Other than the change in presentation of other non-service components of net periodic pension cost within the Company’s condensed consolidated statements of loss, the adoption of this guidance did not have an impact on the Company’s condensed consolidated financial statements and related disclosures. In May 2017, the FASB issued authoritative guidance that provides clarification on accounting for modifications in share-based payment awards. The Company adopted this guidance effective February 4, 2018. The adoption of this guidance did not have an impact on the Company’s condensed consolidated financial statements or related disclosures. In June 2018, the FASB issued authoritative guidance that expanded the scope of stock compensation to include non-employee share-based payment transactions. The Company early adopted this guidance during the second quarter of fiscal 2019. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements or related disclosures. Recently Issued Accounting Guidance In February 2016, the FASB issued a comprehensive new lease standard which will supersede previous lease guidance. The standard requires a lessee to recognize an asset related to the right to use the underlying asset and a liability that approximates the present value of the lease payments over the term of contracts that qualify as leases under the new guidance. The standard also requires expanded disclosures surrounding leases. The standard (including clarification guidance issued during fiscal 2019) is effective for fiscal periods beginning after December 15, 2018, which will be the Company’s first quarter of fiscal 2020, with early adoption permitted. The Company has completed the design phase of its selected lease management system and is in the process of completing its inventory of its lease contracts, validating data migration, as well as implementing processes and controls to enable the preparation of the required financial information for this standard. In July 2018, the FASB issued authoritative guidance that provides entities with an additional transition method of applying the new lease standard at the adoption date and recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Upon adoption of the standard, the Company expects to report material right-of-use assets and material lease liabilities as well as enhanced disclosures. In June 2016, the FASB issued authoritative guidance related to the measurement of credit losses on financial instruments. This guidance is effective for fiscal years beginning after December 15, 2019, which will be the Company’s first quarter of fiscal 2021. Early adoption is permitted for fiscal periods beginning after December 15, 2018, which will be the Company’s first quarter of fiscal 2020. The Company is currently evaluating the impact of the adoption of this standard on its condensed consolidated financial statements and related disclosures. In January 2017, the FASB issued authoritative guidance to simplify the testing for goodwill impairment by removing step two from the goodwill testing. Under current guidance, if the fair value of a reporting unit is lower than its carrying amount (step one), an entity would calculate an impairment charge by comparing the implied fair value of goodwill with its carrying amount (step two). The implied fair value of goodwill was calculated by deducting the fair value of the assets and liabilities of the respective reporting unit from the reporting unit’s fair value as determined under step one. This guidance instead provides that an impairment charge should be recognized based on the difference between a reporting unit’s fair value and its carrying value. This guidance also does not require a qualitative test to be performed on reporting units with zero or negative carrying amounts. However, entities need to disclose any reporting units with zero or negative carrying amounts that have goodwill and the amount of goodwill allocated to each. This guidance is effective for fiscal years beginning after December 15, 2019, which will be the Company’s first quarter of fiscal 2021, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this guidance is not expected to have a material impact on the Company’s condensed consolidated financial statements or related disclosures. In August 2017, the FASB issued authoritative guidance to better align the results of hedge accounting with an entity’s risk management activities. This guidance updates the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. In October 2018, the FASB clarified the new hedge accounting guidance by allowing the Secured Overnight Financing Rate to be eligible as a U.S. benchmark interest rate for purposes of applying hedge accounting. This guidance is effective for fiscal years beginning after December 15, 2018, which will be the Company’s first quarter of fiscal 2020, and requires a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, with early adoption permitted. The updated presentation and disclosure guidance is required only on a prospective basis. The adoption of this guidance is not expected to have a material impact on the Company’s condensed consolidated financial statements or related disclosures. In August 2018, the FASB issued authoritative guidance to modify the disclosure requirements on fair value measurements. This guidance is effective for fiscal years beginning after December 15, 2019, which will be the Company’s first quarter of fiscal 2021, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its related disclosures. In August 2018, the FASB issued authoritative guidance to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This guidance is effective for fiscal years beginning after December 15, 2020, which will be the Company’s first quarter of fiscal 2022, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its related disclosures. In August 2018, the FASB issued authoritative guidance to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance provides criteria for determining which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The capitalized implementation costs are required to be expensed over the term of the hosting arrangement. The guidance also clarifies the presentation requirements for reporting such costs in the entity’s financial statements. This guidance is effective for fiscal years beginning after December 15, 2019, which will be the Company’s first quarter of fiscal 2021, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its condensed consolidated financial statements and related disclosures.
Revenue Recognition	Products Transferred at a Point in Time The Company recognizes the majority of its revenue from its direct-to-consumer (brick-and-mortar retail stores and concessions as well as e-commerce) and wholesale distribution channels at a point in time when it satisfies a performance obligation and transfers control of the product to the respective customer. For the Company’s brick-and-mortar retail stores and concessions, revenue is typically recognized at the point of sale. The Company adopted the new revenue recognition standard effective as of the first quarter of fiscal 2019, and accordingly, revenue generated from the Company’s e-commerce sites is recognized when merchandise is transferred to a common carrier. This is a change compared to the Company’s treatment under previous guidance where revenue from the Company’s e-commerce sites was recognized based on the estimated customer receipt date. This change had an immaterial impact on revenue for the three and nine months ended November 3, 2018. Revenue generated from the Company’s wholesale distribution channel is recognized when control transfers to the customer, which generally occurs upon shipment. The amount of revenue that is recognized is based on the transaction price, which represents the invoiced amount and includes estimates of variable consideration such as allowances for sales returns, markdowns and loyalty award obligations, where applicable. The amount of variable consideration included in the transaction price may be constrained and is included only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized under the contract will not occur in a future period. The Company accepts payments at its brick-and-mortar retail locations and its e-commerce sites in the form of cash, credit cards, gift cards and loyalty points, where applicable. Payment terms, typically less than one year, are offered to the Company’s wholesale customers and do not include a significant financing component. The Company extends credit to wholesale customers based upon an evaluation of the customer’s financial condition and credit history and generally requires no collateral but does obtain credit insurance when considered appropriate. As of November 3, 2018, approximately 49% of the Company’s total net trade receivables and 62% of its European net trade receivables were subject to credit insurance coverage, certain bank guarantees or letters of credit for collection purposes. The Company’s credit insurance coverage contains certain terms and conditions specifying deductibles and annual claim limits. The Company maintains allowances for doubtful accounts for estimated losses that result from the inability of its wholesale customers to make their required payments. The Company bases its allowances on analysis of the aging of accounts receivable at the date of the financial statements, assessments of historical and current collection trends, an evaluation of the impact of current economic conditions and whether the Company has obtained credit insurance or other guarantees. Management performs regular evaluations concerning the ability of its customers to satisfy their obligations and records a provision for doubtful accounts based on these evaluations. The Company’s credit losses for the periods presented were not significant compared to sales and did not significantly exceed management’s estimates. Refer to Note 5 for further information regarding the Company’s allowance for doubtful accounts. Shipping and handling costs associated with outbound freight incurred to transfer a product to a customer are accounted for as fulfillment costs and are included in SG&A expenses. Sales and usage-based taxes collected from customers and remitted directly to governmental authorities are excluded from net revenues. This is consistent with the presentation of such amounts in previous years. The Company does not have significant contract balances related to its direct-to-consumer or wholesale distribution channels other than the allowance for sales returns and markdowns as well as liabilities related to its gift cards and loyalty programs. The Company also does not have significant contract acquisition costs related to its direct-to-consumer or wholesale distribution channels. Sales Return Allowances The Company accrues for estimated sales returns in the period in which the related revenue is recognized. To recognize the financial impact of sales returns, the Company estimates the amount of goods that will be returned based on historical experience and current trends and reduces sales and cost of sales accordingly. The Company’s policy allows retail customers in certain regions a grace period to return merchandise following the date of sale. Substantially all of these returns are considered to be resalable at a price that exceeds the cost of the merchandise. The Company adopted the new revenue recognition standard effective as of the first quarter of fiscal 2019, and accordingly, has included the allowance for sales returns in accrued expenses and the estimated cost associated with such sales returns within other current assets in its condensed consolidated balance sheet. Prior to the adoption of the new revenue recognition standard, the Company recorded the allowance for wholesale sales returns against accounts receivable and the estimated cost of inventory associated with the allowance for sales returns in inventories. The allowance for retail sales returns was included in accrued expenses which is consistent with the current presentation. As of November 3, 2018, the Company included $26.1 million in accrued expenses related to the allowance for sales returns and $10.4 million in other current assets related to the estimated cost of such sales returns. As of February 3, 2018, the Company included $25.0 million and $2.9 million in accounts receivable and accrued expenses, respectively, related to the allowance for sales returns and $11.9 million in inventories related to the estimated cost of such sales returns. Markdown Allowances Costs associated with customer markdowns are recorded as a reduction to revenues and any amounts unapplied to existing receivables are included in accrued expenses. These markdown allowances resulted from seasonal negotiations with the Company’s wholesale customers, as well as historical trends and the evaluation of the impact of current economic conditions. The Company adopted the new revenue recognition standard effective as of the first quarter of fiscal 2019, and accordingly, has included the allowance for markdowns in accrued expenses in its condensed consolidated balance sheet. As of November 3, 2018, the Company included $11.2 million in accrued expenses related to the allowance for markdowns. As of February 3, 2018, the Company included $10.8 million in accounts receivable related to the allowance for markdowns. Gift Cards Gift card breakage is income recognized due to the non-redemption of a portion of gift cards sold by the Company for which a liability was recorded in prior periods. Gifts cards are mainly used in the U.S. and Canada. The Company issues its gift cards in the U.S. and Canada through one of its subsidiaries and is not required by law to escheat the value of unredeemed gift cards to the state in which the subsidiary is domiciled. Estimated breakage amounts are accounted for under the redemption recognition method and are classified as additional net revenues as the gift cards are redeemed. The Company’s gift card breakage rate is approximately 5.5% and 5.3% for the U.S. retail business and Canadian retail business, respectively, based upon historical redemption patterns, which represents the cumulative estimated amount of gift card breakage from the inception of the electronic gift card program in late 2002. Based upon historical redemption trends, the Company recognizes estimated gift card breakage as a component of net revenue in proportion to actual gift card redemptions, over the period that remaining gift card values are redeemed. Any future revisions to the estimated breakage rate may result in changes in the amount of breakage income recognized in future periods. There have been no changes to the Company’s accounting for gift card breakage upon adoption of the new revenue recognition standard effective as of the first quarter of fiscal 2019. During the three and nine months ended November 3, 2018, the Company recognized $0.3 million and $0.5 million, respectively, of gift card breakage to revenue. During the three and nine months ended October 28, 2017, the Company recognized $0.4 million and $0.6 million, respectively, of gift card breakage to revenue. As of November 3, 2018 and February 3, 2018, the Company included $4.4 million and $5.2 million in accrued expenses related to its gift card liability, respectively. Loyalty Programs The Company has customer loyalty programs in North America, Europe and Asia which cover all of its brands. Under certain of the programs, primarily in the U.S. and Canada, customers accumulate points based on purchase activity. Once a loyalty program member achieves a certain point level, the member earns awards that may only be redeemed for merchandise. Unredeemed points generally expire after six months without additional purchase activity and unredeemed awards generally expire after two months. Where applicable, the Company allocates a portion of the transaction price from sales in its direct-to-consumer channel to its loyalty program by using historical redemption rates to estimate the value of future award redemptions. This amount is accrued in current liabilities and recorded as a reduction of net revenue in the period which the related revenue is recognized. During the three and nine months ended November 3, 2018, activity related to the Company’s loyalty programs decreased net revenue by $0.1 million and $0.5 million, respectively. During the three months ended October 28, 2017, activity related to the Company’s loyalty programs had a minimal impact on the net revenues. During the nine months ended October 28, 2017, activity related to the Company’s loyalty programs increased net revenue by $0.4 million. The aggregate dollar value of the loyalty program accruals included accrued expense was $4.5 million and $3.8 million as of November 3, 2018 and February 3, 2018, respectively. Future revisions to the estimated liability may result in changes to net revenue. Intellectual Property Transferred Over Time The Company’s trademark license agreements represent symbolic licenses that are dependent on the Company’s continued support over the term of the license agreement. The amount of revenue that is recognized from the licensing arrangements is based on sales-based royalty and advertising fund contributions as well as specific fixed payments, where applicable. The typical license agreement requires that the licensee pay the Company the greater of a royalty based on a percentage of the licensee’s net sales of licensed products or a guaranteed annual minimum royalty that typically increases over the term of the license agreement. Generally, licensees are also required to make contributions to advertising funds, as a percentage of their sales, over the term of the licensing agreement, and may elect to make additional contributions to support specific brand-building initiatives. The Company recognizes revenue from sales-based royalty and advertising fund contributions when the related sales occur, which is consistent with the timing of when the performance obligation is satisfied. The Company adopted the new revenue recognition standard effective as of the first quarter of fiscal 2019, and accordingly, has recorded advertising contributions in revenue on a gross basis separate from any related advertising expenditures made by the Company which are recorded in SG&A expenses in the Company’s condensed consolidated statements of income (loss). Prior to the adoption of the new revenue recognition standard, the Company recorded advertising contributions received from its licensees and the related advertising expenditures incurred by the Company on a net basis in its consolidated balance sheet. Under previous guidance, to the extent that the advertising contributions exceed the Company’s advertising expenditures for its licensees, the excess contribution was treated as a deferred liability and was included in accrued expenses in the Company’s condensed consolidated balance sheet. Refer to Note 1 for detail regarding the impact of this change on the Company’s condensed consolidated balance sheet and its condensed consolidated statements of income (loss) as a result of the adoption of the new revenue recognition standard. The Company records royalty and advertising payments received on the Company’s purchases of licensed product as a reduction of the cost of the licensed product. The Company’s trademark license agreements customarily provide for a multi-year initial term ranging from three to ten years, and may contain options to renew prior to expiration for an additional multi-year period. Several of the Company’s key license agreements provide for specified, fixed payments over and above the normal, ongoing royalty payments in consideration of the grant of the license rights. These payments are recognized ratably as revenue over the term of the license agreement and do not include a significant financing component. The unrecognized portion of upfront payments is included in deferred royalties in accrued expenses and other long-term liabilities depending on the short or long-term nature of the payments to be recognized. As of November 3, 2018, the Company had $6.7 million and $15.0 million of deferred royalties related to these upfront payments included in accrued expenses and other long-term liabilities, respectively. This compares to $6.8 million and $12.8 million of deferred royalties related to these upfront payments included in accrued expenses and other long-term liabilities, respectively, at February 3, 2018. During the three and nine months ended November 3, 2018, the Company recognized $3.6 million and $10.5 million in net royalties related to the amortization of the deferred royalties, respectively. During the three and nine months ended October 28, 2017, the Company recognized $3.0 million and $9.0 million in net royalties related to the amortization of the deferred royalties, respectively. Contract balances related to the Company’s licensing distribution channel consist primarily of royalty receivables and liabilities related to deferred royalties.

Earnings (Loss) per Share (Tables)

9 Months Ended

Nov. 03, 2018

Earnings Per Share [Abstract]

Computation of basic and diluted net loss per common share attributable to common stockholders

The computation of basic and diluted net loss per common share attributable to common stockholders is as follows (in thousands, except per share data):



	Three Months Ended						Nine Months Ended
	Nov 3, 2018			Oct 28, 2017			Nov 3, 2018			Oct 28, 2017
Net loss	$	(13,442	)	$	(2,860	)	$	(9,133	)	$	(8,934	)
Less net earnings attributable to nonvested restricted stockholders	187			186			577			581
Net loss attributable to common stockholders	$	(13,629	)	$	(3,046	)	$	(9,710	)	$	(9,515	)

Weighted average common shares used in basic computations	80,189			82,390			80,067			82,599
Effect of dilutive securities:
Stock options and restricted stock units¹	—			—			—			—
Weighted average common shares used in diluted computations	80,189			82,390			80,067			82,599

Net loss per common share attributable to common stockholders:
Basic	$	(0.17	)	$	(0.04	)	$	(0.12	)	$	(0.12	)
Diluted	$	(0.17	)	$	(0.04	)	$	(0.12	)	$	(0.12	)

__________________________________

Notes:


¹	For the three and nine months ended November 3, 2018, there were 1,499,247 and 1,312,054, respectively, of potentially dilutive shares that were not included in the computation of diluted weighted average common shares and common equivalent shares outstanding because their effect would have been antidilutive given the Company’s net loss.

Stockholders' Equity and Redeemable Noncontrolling Interests (Tables)

9 Months Ended

Nov. 03, 2018

Stockholders' Equity and Redeemable Noncontrolling Interests [Abstract]

Reconciliation of common stock outstanding, treasury stock and the total carrying amount of total stockholders' equity, Guess, Inc. stockholders' equity and stockholders' equity attributable to nonredeemable and redeemable noncontrolling interests



	Shares				Stockholders’ Equity
	Common Stock		Treasury Stock		Guess?, Inc. Stockholders’ Equity			Nonredeemable Noncontrolling Interests			Total			Redeemable Noncontrolling Interests
Balance at January 28, 2017	84,069,492		56,440,482		$	969,222		$	11,772		$	980,994		$	4,452
Net earnings (loss)	—		—		(7,894		)	3,993			(3,901		)	—
Foreign currency translation adjustment	—		—		91,178			2,238			93,416			187
Loss on derivative financial instruments designated as cash flow hedges, net of income tax of $2,738	—		—		(19,994		)	—			(19,994		)	—
Actuarial valuation loss and related amortization, prior service credit amortization and foreign currency and other adjustments on defined benefit plans, net of income tax of $435	—		—		(1,647		)	—			(1,647		)	—
Issuance of common stock under stock compensation plans, net of tax effect	1,113,713		—		(1,257		)	—			(1,257		)	—
Issuance of stock under Employee Stock Purchase Plan	54,300		(54,300	)	566			—			566			—
Share-based compensation	—		—		18,852			—			18,852			—
Dividends	—		—		(76,048		)	—			(76,048		)	—
Share repurchases	(3,866,387	)	3,866,387		(56,159		)	—			(56,159		)	—
Noncontrolling interest capital contribution	—		—		—			11			11			951
Noncontrolling interest capital distribution	—		—		—			(1,358		)	(1,358		)	—
Balance at February 3, 2018	81,371,118		60,252,569		$	916,819		$	16,656		$	933,475		$	5,590
Cumulative adjustment from adoption of new accounting guidance	—		—		5,829			—			5,829			—
Net earnings (loss)	—		—		(9,133		)	1,064			(8,069		)	—
Foreign currency translation adjustment	—		—		(58,276		)	(994		)	(59,270		)	(786		)
Gain on derivative financial instruments designated as cash flow hedges, net of income tax of ($2,545)	—		—		17,242			—			17,242			—
Actuarial valuation and prior service credit amortization and foreign currency and other adjustments on defined benefit plans, net of income tax of ($89)	—		—		688			—			688			—
Issuance of common stock under stock compensation plans, net of tax effect	718,583		—		4,124			—			4,124			—
Issuance of stock under Employee Stock Purchase Plan	36,632		(36,632	)	613			—			613			—
Share-based compensation	—		—		12,534			—			12,534			—
Dividends	—		—		(55,955		)	—			(55,955		)	—
Share repurchases	(1,118,808	)	1,118,808		(17,587		)	—			(17,587		)	—
Noncontrolling interest capital distribution	—		—		—			(3,069		)	(3,069		)	—
Balance at November 3, 2018	81,007,525		61,334,745		$	816,898		$	13,657		$	830,555		$	4,804

Schedule of changes in accumulated other comprehensive income (loss), net of related income taxes

The changes in accumulated other comprehensive income (loss), net of related income taxes, for the three and nine months ended November 3, 2018 and October 28, 2017 are as follows (in thousands):



	Three Months Ended Nov 3, 2018
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Defined Benefit Plans			Total
Balance at August 4, 2018	$	(114,761	)	$	(142	)	$	(11,117	)	$	(126,020	)
Gains (losses) arising during the period	(10,564		)	1,596			37			(8,931		)
Reclassification to net loss for losses realized	—			1,419			124			1,543
Net other comprehensive income (loss)	(10,564		)	3,015			161			(7,388		)
Balance at November 3, 2018	$	(125,325	)	$	2,873		$	(10,956	)	$	(133,408	)



	Nine Months Ended Nov 3, 2018
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Defined Benefit Plans			Total
Balance at February 3, 2018	$	(67,049	)	$	(14,369	)	$	(11,644	)	$	(93,062	)
Gains (losses) arising during the period	(58,276		)	12,175			314			(45,787		)
Reclassification to net loss for losses realized	—			5,067			374			5,441
Net other comprehensive income (loss)	(58,276		)	17,242			688			(40,346		)
Balance at November 3, 2018	$	(125,325	)	$	2,873		$	(10,956	)	$	(133,408	)



	Three Months Ended Oct 28, 2017
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Defined Benefit Plans			Total
Balance at July 29, 2017	$	(103,675	)	$	(8,751	)	$	(8,483	)	$	(120,909	)
Gains (losses) arising during the period	(8,184		)	2,749			97			(5,338		)
Reclassification to net loss for losses realized	—			235			88			323
Net other comprehensive income (loss)	(8,184		)	2,984			185			(5,015		)
Balance at October 28, 2017	$	(111,859	)	$	(5,767	)	$	(8,298	)	$	(125,924	)



	Nine Months Ended Oct 28, 2017
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Defined Benefit Plans			Total
Balance at January 28, 2017	$	(158,227	)	$	5,400		$	(8,562	)	$	(161,389	)
Gains (losses) arising during the period	46,368			(10,220		)	2			36,150
Reclassification to net loss for (gains) losses realized	—			(947		)	262			(685		)
Net other comprehensive income (loss)	46,368			(11,167		)	264			35,465
Balance at October 28, 2017	$	(111,859	)	$	(5,767	)	$	(8,298	)	$	(125,924	)

Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss)



	Three Months Ended						Nine Months Ended						Location of (Gain) Loss Reclassified from Accumulated OCI into Loss
	Nov 3, 2018			Oct 28, 2017			Nov 3, 2018			Oct 28, 2017
Derivative financial instruments designated as cash flow hedges:
Foreign exchange currency contracts	$	1,618		$	(81	)	$	5,646		$	(1,360	)	Cost of product sales
Foreign exchange currency contracts	—			337			201			244			Other income (expense)
Interest rate swap	(21		)	57			(60		)	119			Interest expense
Less income tax effect	(178		)	(78		)	(720		)	50			Income tax expense (benefit)
	1,419			235			5,067			(947		)
Defined benefit plans:
Net actuarial loss amortization¹	150			116			453			344			Other income (expense)
Prior service credit amortization¹	(7		)	(7		)	(21		)	(20		)	Other income (expense)
Less income tax effect	(19		)	(21		)	(58		)	(62		)	Income tax expense (benefit)
	124			88			374			262
Total reclassifications during the period	$	1,543		$	323		$	5,441		$	(685	)

__________________________________

Notes:

Accounts Receivable (Tables)

9 Months Ended

Nov. 03, 2018

Receivables [Abstract]

Schedule of accounts receivable

Accounts receivable is summarized as follows (in thousands):



	Nov 3, 2018		Feb 3, 2018
Trade	$	282,919	$	290,478
Royalty	8,437		5,504
Other	6,453		13,233
	297,809		309,215
Less allowances¹	11,703		49,219
	$	286,106	$	259,996

__________________________________

Notes:

Inventories (Tables)

9 Months Ended

Nov. 03, 2018

Inventory Disclosure [Abstract]

Schedule of inventories

Inventories consist of the following (in thousands):



	Nov 3, 2018		Feb 3, 2018
Raw materials	$	1,360	$	604
Work in progress	166		16
Finished goods¹	546,991		427,684
	$	548,517	$	428,304

__________________________________

Notes:

Segment Information (Tables)

9 Months Ended

Nov. 03, 2018

Segment Reporting [Abstract]

Summary of net revenue and earnings (loss) from operations by segment

Net revenue and loss from operations are summarized as follows for the three and nine months ended November 3, 2018 and October 28, 2017 (in thousands):



	Three Months Ended						Nine Months Ended
	Nov 3, 2018			Oct 28, 2017			Nov 3, 2018			Oct 28, 2017
Net revenue:
Americas Retail	$	186,925		$	187,021		$	555,390		$	561,903
Americas Wholesale	52,698			45,636			127,630			114,151
Europe	254,037			221,230			771,470			641,833
Asia	89,461			74,322			256,298			200,436
Licensing^1,2	22,286			20,744			61,779			53,267
Total net revenue^1,2	$	605,407		$	548,953		$	1,772,567		$	1,571,590
Earnings (loss) from operations:
Americas Retail^2,3	$	3,799		$	(2,414	)	$	3,701		$	(27,550	)
Americas Wholesale^2,3	10,392			8,562			21,743			20,783
Europe^3,4	7,410			9,095			17,608			38,147
Asia³	1,938			2,954			7,637			5,734
Licensing^2,3	19,485			18,346			54,408			46,196
Total segment earnings from operations^2,4	43,024			36,543			105,097			83,310
Corporate overhead^2,4	(20,824		)	(23,443		)	(72,316		)	(67,403		)
Net gains (losses) on lease terminations⁵	—			(11,494		)	152			(11,494		)
Asset impairment charges⁶	(1,277		)	(2,018		)	(5,017		)	(6,013		)
European Commission fine⁷	(42,428		)	—			(42,428		)	—
Total loss from operations^2,4	$	(21,505	)	$	(412	)	$	(14,512	)	$	(1,600	)

__________________________________

Notes:

⁴

⁵


⁶	During each of the periods presented, the Company recognized asset impairment charges for certain retail locations resulting from under-performance and expected store closures. Refer to Note 14 for more information regarding these asset impairment charges.


⁷	During the third quarter of fiscal 2019, the Company recorded a charge of €37.0 million euro ($42.4 million) related to an estimated fine expected to be imposed on the Company by the European Commission related to its inquiry concerning possible violations of European Union competition rules by the Company. Refer to Note 12 for further information.

Summary of net revenue by country

Net revenue is classified primarily based on the country where the Company’s customer is located (in thousands):



	Three Months Ended				Nine Months Ended
	Nov 3, 2018		Oct 28, 2017		Nov 3, 2018		Oct 28, 2017
Net revenue:
U.S.	$	181,113	$	170,068	$	519,547	$	507,239
Italy	65,050		67,561		213,336		195,955
Canada	49,961		53,381		136,296		142,905
South Korea	40,623		41,709		114,706		114,547
Other foreign countries	268,660		216,234		788,682		610,944
Total net revenue	$	605,407	$	548,953	$	1,772,567	$	1,571,590

Share-Based Compensation (Tables)

9 Months Ended

Nov. 03, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of share-based compensation expense recognized under all of the Company's stock plans



	Three Months Ended				Nine Months Ended
	Nov 3, 2018		Oct 28, 2017		Nov 3, 2018		Oct 28, 2017
Stock options	$	824	$	571	$	2,191	$	1,761
Stock awards/units	3,692		3,658		10,154		10,539
Employee Stock Purchase Plan	29		31		189		110
Total share-based compensation expense	$	4,545	$	4,260	$	12,534	$	12,410

Schedule of activity for nonvested performance-based units

The following table summarizes the activity for nonvested performance-based units during the nine months ended November 3, 2018:



	Number of Units		Weighted Average Grant Date Fair Value
Nonvested at February 3, 2018	1,300,921		$	14.01
Granted	489,646		21.83
Vested	(141,625	)	15.07
Forfeited	(52,312	)	15.37
Nonvested at November 3, 2018	1,596,630		$	16.27

Schedule of activity for nonvested market-based units

The following table summarizes the activity for nonvested market-based units during the nine months ended November 3, 2018:



	Number of Units	Weighted Average Grant Date Fair Value
Nonvested at February 3, 2018	388,477	$	12.28
Granted	129,932	20.28
Vested	—	—
Forfeited	—	—
Nonvested at November 3, 2018	518,409	$	14.28

Defined Benefit Plans (Tables)

9 Months Ended

Nov. 03, 2018

Defined Benefit Plan [Abstract]

Components of net periodic defined benefit pension cost related to the Company's defined benefit plans



	Three Months Ended Nov 3, 2018
	SERP		Foreign Pension Plans			Total
Service cost	$	—	$	730		$	730
Interest cost	471		54			525
Expected return on plan assets	—		(72		)	(72		)
Net amortization of unrecognized prior service credit	—		(7		)	(7		)
Net amortization of actuarial losses	47		103			150
Net periodic defined benefit pension cost	$	518	$	808		$	1,326



	Nine Months Ended Nov 3, 2018
	SERP		Foreign Pension Plans			Total
Service cost	$	—	$	2,224		$	2,224
Interest cost	1,415		164			1,579
Expected return on plan assets	—		(221		)	(221		)
Net amortization of unrecognized prior service credit	—		(21		)	(21		)
Net amortization of actuarial losses	140		313			453
Net periodic defined benefit pension cost	$	1,555	$	2,459		$	4,014



	Three Months Ended Oct 28, 2017
	SERP		Foreign Pension Plans			Total
Service cost	$	—	$	492		$	492
Interest cost	461		22			483
Expected return on plan assets	—		(48		)	(48		)
Net amortization of unrecognized prior service credit	—		(7		)	(7		)
Net amortization of actuarial losses	38		78			116
Net periodic defined benefit pension cost	$	499	$	537		$	1,036



	Nine Months Ended Oct 28, 2017
	SERP		Foreign Pension Plans			Total
Service cost	$	—	$	1,452		$	1,452
Interest cost	1,382		64			1,446
Expected return on plan assets	—		(143		)	(143		)
Net amortization of unrecognized prior service credit	—		(20		)	(20		)
Net amortization of actuarial losses	114		230			344
Net periodic defined benefit pension cost	$	1,496	$	1,583		$	3,079

Fair Value Measurements (Tables)

9 Months Ended

Nov. 03, 2018

Fair Value Disclosures [Abstract]

Schedule of fair value hierarchy for assets and liabilities measured at fair value on a recurring basis

The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of November 3, 2018 and February 3, 2018 (in thousands):



	Fair Value Measurements at Nov 3, 2018								Fair Value Measurements at Feb 3, 2018
Recurring Fair Value Measures	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange currency contracts	$	—	$	7,527	$	—	$	7,527	$	—	$	51	$	—	$	51
Interest rate swap	—		1,707		—		1,707		—		1,460		—		1,460
Total	$	—	$	9,234	$	—	$	9,234	$	—	$	1,511	$	—	$	1,511
Liabilities:
Foreign exchange currency contracts	$	—	$	7	$	—	$	7	$	—	$	18,089	$	—	$	18,089
Deferred compensation obligations	—		14,197		—		14,197		—		13,476		—		13,476
Total	$	—	$	14,204	$	—	$	14,204	$	—	$	31,565	$	—	$	31,565

Derivative Financial Instruments (Tables)

9 Months Ended

Nov. 03, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of fair value of derivative instruments in the condensed consolidated balance sheets

The fair value of derivative instruments in the condensed consolidated balance sheets as of November 3, 2018 and February 3, 2018 is as follows (in thousands):



	Derivative Balance Sheet Location	Fair Value at Nov 3, 2018		Fair Value at Feb 3, 2018
ASSETS:
Derivatives designated as hedging instruments:
Cash flow hedges:
Foreign exchange currency contracts	Other current assets/ Other assets	$	5,254	$	41
Interest rate swap	Other assets	1,707		1,460
Total derivatives designated as hedging instruments		6,961		1,501
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Other current assets	2,273		10
Total		$	9,234	$	1,511
LIABILITIES:
Derivatives designated as hedging instruments:
Cash flow hedges:
Foreign exchange currency contracts	Accrued expenses/ Other long-term liabilities	$	5	$	13,789
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Accrued expenses	2		4,300
Total		$	7	$	18,089

Summary of gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings (loss)



	Gains Recognized in OCI				Location of Gain (Loss) Reclassified from Accumulated OCI into Loss¹	Gain (Loss) Reclassified from Accumulated OCI into Loss
	Three Months Ended					Three Months Ended
	Nov 3, 2018		Oct 28, 2017			Nov 3, 2018			Oct 28, 2017
Derivatives designated as cash flow hedges:
Foreign exchange currency contracts	$	1,630	$	3,215	Cost of product sales	$	(1,618	)	$	81
Foreign exchange currency contracts	—		38		Other income (expense)	—			(337		)
Interest rate swap	203		134		Interest expense	21			(57		)



	Gains Recognized in OCI					Location of Gain (Loss) Reclassified from Accumulated OCI into Loss¹	Gain (Loss) Reclassified from Accumulated OCI into Loss
	Nine months ended						Nine months ended
	Nov 3, 2018		Oct 28, 2017				Nov 3, 2018			Oct 28, 2017
Derivatives designated as cash flow hedges:
Foreign exchange currency contracts	$	13,690	$	(10,601	)	Cost of product sales	$	(5,646	)	$	1,360
Foreign exchange currency contracts	2		(958		)	Other income (expense)	(201		)	(244		)
Interest rate swap	308		(143		)	Interest expense	60			(119		)

__________________________________

Notes:

Summary of net after-tax derivative activity recorded in accumulated other comprehensive income (loss)

The following table summarizes net after-tax derivative activity recorded in accumulated other comprehensive income (loss) (in thousands):



	Three Months Ended						Nine Months Ended
	Nov 3, 2018			Oct 28, 2017			Nov 3, 2018			Oct 28, 2017
Beginning balance gain (loss)	$	(142	)	$	(8,751	)	$	(14,369	)	$	5,400
Net gains (losses) from changes in cash flow hedges	1,596			2,749			12,175			(10,220		)
Net (gains) losses reclassified into loss	1,419			235			5,067			(947		)
Ending balance gain (loss)	$	2,873		$	(5,767	)	$	2,873		$	(5,767	)

Summary of gains (losses) before taxes recognized on the derivative instruments not designated as hedging instruments in other income (expense)



	Location of Gain (Loss) Recognized in Loss	Gain (Loss) Recognized in Loss
		Three Months Ended				Nine Months Ended
		Nov 3, 2018		Oct 28, 2017		Nov 3, 2018		Oct 28, 2017
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Other income (expense)	$	794	$	1,645	$	6,700	$	(5,688	)

Basis of Presentation and New Accounting Guidance (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

12 Months Ended

Nov. 03, 2018

Oct. 28, 2017

Nov. 03, 2018

Oct. 28, 2017

Feb. 02, 2019

Feb. 03, 2018

Jan. 28, 2017

Fiscal year

Number of days in fiscal year

371 days

364 days

New accounting pronouncements and changes in accounting principles

$ 0

$ 11,494

$ (152)

$ 11,494

Cumulative adjustment from adoption of new accounting guidance

$ 5,829

^[1],[2]

605,407

548,953

1,772,567

1,571,590

Accounting Standards Update 2014-09

(197,943)

(178,009)

(600,731)

(517,871)

New accounting pronouncements and changes in accounting principles

Cumulative adjustment from adoption of new accounting guidance

$ 5,800

Accounting Standards Update 2017-07

New accounting pronouncements and changes in accounting principles

Number of days in fiscal year

500

1,600

Forecast

Fiscal year

364 days

North America

(152)

Europe

Impact from adoption of new revenue recognition guidance | Accounting Standards Update 2014-09

(1,048)

New accounting pronouncements and changes in accounting principles

2,700

7,100

Lease Modification with a common landlord

$ (2,500)

$ (7,200)

Up-front payment related to lease modification

12,418

22,000

Advance rent payments

9,615

$ 9,615

Lease Modification with a common landlord | North America

$ 11,500

[1]

[2]

Revenue Recognition (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Nov. 03, 2018

Oct. 28, 2017

Nov. 03, 2018

Oct. 28, 2017

Feb. 03, 2018

Percentage of total accounts receivable subject to credit insurance coverage, certain bank guarantees or letters of credit for collection purposes

49.00%

Expiration period of unredeemed points under loyalty program (in months)

^[1],[2]

$ 605,407

$ 548,953

$ 1,772,567

$ 1,571,590

6 months

Expiration period of unredeemed awards under loyalty program (in months)

2 months

Impact on net revenue resulting from activity related to the Company's loyalty programs

(100)

$ (500)

400

Accrued expenses

Allowance for sales returns

26,100

$ 2,900

Gift card liability

4,400

5,200

Other current assets

Cost of sales returns

10,400

Accounts receivable

Allowance for sales returns

25,000

Inventories

Allowance for markdowns | Accrued expenses

Cost of sales returns

11,900

Allowance for markdowns | Accounts receivable

11,200

10,800

Gift card breakage

Loyalty programs | Accrued expenses

300

400

500

600

4,500

3,800

Deferred royalties

Deferred royalties | Accrued expenses

Net royalties

3,600

3,000

10,500

9,000

Deferred royalties | Other long-term liabilities

6,700

6,800

15,000

$ 15,000

$ 12,800

U.S.

Gift card breakage percentage

5.50%

181,113

170,068

$ 519,547

507,239

Canada

Gift card breakage percentage

5.30%

$ 49,961

$ 53,381

$ 136,296

$ 142,905

Europe

Percentage of total accounts receivable subject to credit insurance coverage, certain bank guarantees or letters of credit for collection purposes

62.00%

Minimum

Trademark license agreement period

3 years

Maximum

Payment period for wholesale customers

1 year

Trademark license agreement period

10 years

[1]

[2]

Earnings (Loss) per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

9 Months Ended

Nov. 03, 2018

Oct. 28, 2017

Nov. 03, 2018

Oct. 28, 2017

Earnings Per Share [Abstract]

Net loss

$ (13,442)

$ (2,860)

$ (9,133)

$ (8,934)

Less net earnings attributable to nonvested restricted stockholders

187

186

577

581

Net loss attributable to common stockholders

$ (13,629)

$ (3,046)

$ (9,710)

$ (9,515)

Weighted average common shares used in basic computations (in shares)

80,189,000,000

82,390,000,000

80,067,000,000

82,599,000,000

Effect of dilutive securities:

Stock options and restricted stock units (in shares)

^[1]

Weighted average common shares used in diluted computations (in shares)

80,189,000,000

82,390,000,000

80,067,000,000

82,599,000,000

Net loss per common share attributable to common stockholders:

Basic (in dollars per share)

$ (0.17)

$ (0.04)

$ (0.12)

Diluted (in dollars per share)

$ (0.17)

$ (0.04)

$ (0.12)

Antidilutive securities excluded from computation of earnings (loss) per share

Antidilutive equity awards excluded from computation of diluted weighted average common shares (in shares)

1,310,933

2,901,025

1,610,091

3,104,027

Potentially dilutive shares

Antidilutive securities excluded from computation of earnings (loss) per share

Antidilutive equity awards excluded from computation of diluted weighted average common shares (in shares)

1,499,247

1,312,054

Performance-based units

Antidilutive securities excluded from computation of earnings (loss) per share

Performance or market awards excluded from computation of EPS (in shares)

1,336,679

1,145,080

1,336,679

1,145,080

[1]

For the three and nine months ended November 3, 2018, there were 1,499,247 and 1,312,054, respectively, of potentially dilutive shares that were not included in the computation of diluted weighted average common shares and common equivalent shares outstanding because their effect would have been antidilutive given the Company’s net loss.

Earnings (Loss) per Share (Details 2) - USD ($)	3 Months Ended				9 Months Ended		12 Months Ended
Earnings (Loss) per Share (Details 2) - USD ($)	May 05, 2018	Feb. 03, 2018	Oct. 28, 2017	Apr. 29, 2017	Nov. 03, 2018	Oct. 28, 2017	Feb. 03, 2018	Jun. 26, 2012
Share repurchase program
Shares repurchased, aggregate cost					$ 17,587,000		$ 56,159,000
Share Repurchase Program
Share repurchase program
Value of common stock authorized to be repurchased								$ 500,000,000
Number of common stock repurchased (in shares)	1,118,808		434,772	1,485,195	1,118,808	1,919,967
Shares repurchased, aggregate cost	$ 17,600,000	$ 6,000,000	$ 7,000,000	$ 17,800,000	$ 17,600,000	$ 24,800,000
Value of common stock remaining to be repurchased					$ 374,600,000

Stockholders' Equity and Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017	Feb. 03, 2018
Stockholders' equity reconciliation
Stock (in shares), beginning of the period			81,371,118
Stockholders' equity, balance at the beginning of the period			$ 933,475	$ 980,994	$ 980,994
Cumulative adjustment from adoption of new accounting guidance					5,829
Net earnings (loss)	$ (12,816)	$ (1,662)	(8,069)	$ (7,008)	(3,901)
Foreign currency translation adjustment			(59,270)		93,416
Gain (loss) on derivative financial instruments designated as cash flow hedges, net of income tax			17,242		(19,994)
Actuarial valuation loss and related amortization, prior service credit amortization and foreign currency and other adjustments on defined benefit plans, net of income tax			688		(1,647)
Issuance of common stock under stock compensation plans, net of tax effect			4,124		(1,257)
Issuance of stock under Employee Stock Purchase Plan			613		566
Share-based compensation			12,534		18,852
Dividends			(55,955)		(76,048)
Share repurchases			(17,587)		(56,159)
Noncontrolling interest capital contribution					11
Noncontrolling interest capital distribution			$ (3,069)		$ (1,358)
Stock (in shares), end of the period	81,007,525		81,007,525		81,371,118
Stockholders' equity, balance at the end of the period	$ 830,555		$ 830,555		$ 933,475
Comprehensive income (loss), income tax effect
Gain (loss) on derivative financial instruments designated as cash flow hedges, tax effect			(2,545)		2,738
Actuarial valuation loss and related amortization, prior service credit amortization and foreign currency and other adjustments on defined benefit plans, tax effect			$ (89)		$ 435
Common Stock
Stockholders' equity reconciliation
Stock (in shares), beginning of the period			81,371,118	84,069,492	84,069,492
Issuance of common stock under stock compensation plans, net of tax effect (in shares)			718,583		1,113,713
Issuance of stock under Employee Stock Purchase Plan (in shares)			36,632		54,300
Share repurchases (in shares)			(1,118,808)		(3,866,387)
Stock (in shares), end of the period	81,007,525		81,007,525		81,371,118
Treasury Stock
Stockholders' equity reconciliation
Stock (in shares), beginning of the period			60,252,569	56,440,482	56,440,482
Issuance of stock under Employee Stock Purchase Plan (in shares)			(36,632)		(54,300)
Share repurchases (in shares)			1,118,808		3,866,387
Stock (in shares), end of the period	61,334,745		61,334,745		60,252,569
Guess, Inc. Stockholders’ Equity
Stockholders' equity reconciliation
Stockholders' equity, balance at the beginning of the period			$ 916,819	$ 969,222	$ 969,222
Cumulative adjustment from adoption of new accounting guidance					5,829
Net earnings (loss)			(9,133)		(7,894)
Foreign currency translation adjustment			(58,276)		91,178
Gain (loss) on derivative financial instruments designated as cash flow hedges, net of income tax			17,242		(19,994)
Actuarial valuation loss and related amortization, prior service credit amortization and foreign currency and other adjustments on defined benefit plans, net of income tax			688		(1,647)
Issuance of common stock under stock compensation plans, net of tax effect			4,124		(1,257)
Issuance of stock under Employee Stock Purchase Plan			613		566
Share-based compensation			12,534		18,852
Dividends			(55,955)		(76,048)
Share repurchases			(17,587)		(56,159)
Noncontrolling interest capital contribution					0
Noncontrolling interest capital distribution			0		0
Stockholders' equity, balance at the end of the period	$ 816,898		816,898		916,819
Nonredeemable Noncontrolling Interests
Stockholders' equity reconciliation
Stockholders' equity, balance at the beginning of the period			16,656	$ 11,772	11,772
Cumulative adjustment from adoption of new accounting guidance					0
Net earnings (loss)			1,064		3,993
Foreign currency translation adjustment			(994)		2,238
Gain (loss) on derivative financial instruments designated as cash flow hedges, net of income tax			0		0
Actuarial valuation loss and related amortization, prior service credit amortization and foreign currency and other adjustments on defined benefit plans, net of income tax			0		0
Issuance of common stock under stock compensation plans, net of tax effect			0		0
Issuance of stock under Employee Stock Purchase Plan			0		0
Share-based compensation			0		0
Dividends			0		0
Share repurchases			0		0
Noncontrolling interest capital contribution					11
Noncontrolling interest capital distribution			(3,069)		(1,358)
Stockholders' equity, balance at the end of the period	$ 13,657		$ 13,657		$ 16,656

Stockholders' Equity and Redeemable Noncontrolling Interests (Details 2) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Nov. 03, 2018	Feb. 03, 2018	Nov. 03, 2018
Redeemable noncontrolling interests reconciliation
Redeemable noncontrolling interests, carrying value at the beginning of the period	$ 5,590	$ 4,452
Redeemable noncontrolling interests, foreign currency translation adjustment	(786)	187
Redeemable noncontrolling interests, capital contribution		951
Redeemable noncontrolling interests, carrying value at the end of the period	4,804	5,590
Redeemable noncontrolling interests put arrangements
Redeemable noncontrolling interests	5,590	4,452	$ 4,804
Guess Brazil
Redeemable noncontrolling interests reconciliation
Redeemable noncontrolling interests, carrying value at the beginning of the period	1,600
Redeemable noncontrolling interests, carrying value at the end of the period	$ 1,400	1,600
Redeemable noncontrolling interests put arrangements
Total outstanding equity interest in subsidiary covered by put arrangement (as a percent)			40.00%
Initial period put option can be exercised by noncontrolling owners	6 years
Period put option can be exercised by noncontrolling owners	3 years
Redeemable noncontrolling interests	$ 1,600	1,600	$ 1,400
Guess CIS
Redeemable noncontrolling interests reconciliation
Redeemable noncontrolling interests, carrying value at the beginning of the period	4,000
Redeemable noncontrolling interests, carrying value at the end of the period	$ 3,400	4,000
Redeemable noncontrolling interests put arrangements
Total outstanding equity interest in subsidiary covered by put arrangement (as a percent)			30.00%
Initial period put option can be exercised by noncontrolling owners	5 years
Redeemable noncontrolling interests	$ 4,000	4,000	$ 3,400
Total cash contributions in the joint venture made by the Company and the noncontrolling interest holder		3,200
Payments made by the Company related to its controlling interest in joint venture		$ 2,200

Stockholders' Equity and Redeemable Noncontrolling Interests (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017
Accumulated other comprehensive income (loss), net of tax
Stockholders' equity, balance at the beginning of the period			$ 933,475	$ 980,994
Gains (losses) arising during the period	$ (8,931)	$ (5,338)	(45,787)	36,150
Reclassification to net loss for (gains) losses realized	1,543	323	5,441	(685)
Net other comprehensive income (loss)	(7,388)	(5,015)	(40,346)	35,465
Stockholders' equity, balance at the end of the period	830,555		830,555
Foreign Currency Translation Adjustment
Accumulated other comprehensive income (loss), net of tax
Stockholders' equity, balance at the beginning of the period	(114,761)	(103,675)	(67,049)	(158,227)
Gains (losses) arising during the period	(10,564)	(8,184)	(58,276)	46,368
Reclassification to net loss for (gains) losses realized	0	0	0	0
Net other comprehensive income (loss)	(10,564)	(8,184)	(58,276)	46,368
Stockholders' equity, balance at the end of the period	(125,325)	(111,859)	(125,325)	(111,859)
Derivative Financial Instruments Designated as Cash Flow Hedges
Accumulated other comprehensive income (loss), net of tax
Stockholders' equity, balance at the beginning of the period	(142)	(8,751)	(14,369)	5,400
Gains (losses) arising during the period	1,596	2,749	12,175	(10,220)
Reclassification to net loss for (gains) losses realized	1,419	235	5,067	(947)
Net other comprehensive income (loss)	3,015	2,984	17,242	(11,167)
Stockholders' equity, balance at the end of the period	2,873	(5,767)	2,873	(5,767)
Defined Benefit Plans
Accumulated other comprehensive income (loss), net of tax
Stockholders' equity, balance at the beginning of the period	(11,117)	(8,483)	(11,644)	(8,562)
Gains (losses) arising during the period	37	97	314	2
Reclassification to net loss for (gains) losses realized	124	88	374	262
Net other comprehensive income (loss)	161	185	688	264
Stockholders' equity, balance at the end of the period	(10,956)	(8,298)	(10,956)	(8,298)
Accumulated Other Comprehensive Loss
Accumulated other comprehensive income (loss), net of tax
Stockholders' equity, balance at the beginning of the period	(126,020)	(120,909)	(93,062)	(161,389)
Stockholders' equity, balance at the end of the period	$ (133,408)	$ (125,924)	$ (133,408)	$ (125,924)

Stockholders' Equity and Redeemable Noncontrolling Interests (Details 4) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Nov. 03, 2018

Oct. 28, 2017

Nov. 03, 2018

Oct. 28, 2017

Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss)

$ 385,264

$ 357,844

$ 1,139,055

$ 1,037,812

5,810

(2,216)

7,064

(1,935)

784

684

2,386

1,642

(14,500)

3,673

(13,001)

8,723

Reclassifications out of accumulated other comprehensive income (loss)

13,442

2,860

9,133

8,934

Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss)

Derivative Financial Instruments Designated as Cash Flow Hedges | Reclassifications out of accumulated other comprehensive income (loss)

1,543

323

5,441

(685)

Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss)

(178)

(78)

(720)

Actuarial Loss Amortization | Reclassifications out of accumulated other comprehensive income (loss)

1,419

235

(5,067)

(947)

Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss)

Prior Service Credit Amortization | Reclassifications out of accumulated other comprehensive income (loss)

^[1]

150

116

453

344

Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss)

Defined Benefit Plans | Reclassifications out of accumulated other comprehensive income (loss)

^[1]

(7)

(21)

(20)

Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss)

(19)

(21)

(58)

(62)

Foreign exchange currency contracts | Derivative Financial Instruments Designated as Cash Flow Hedges | Reclassifications out of accumulated other comprehensive income (loss)

124

374

262

Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss)

1,618

(81)

5,646

(1,360)

Interest rate swap | Derivative Financial Instruments Designated as Cash Flow Hedges | Reclassifications out of accumulated other comprehensive income (loss)

337

201

244

Reclassifications out of accumulated other comprehensive income (loss) to net earnings (loss)

$ (21)

$ 57

$ (60)

$ 119

[1]

Accounts Receivable (Details) - USD ($)
$ in Thousands

Nov. 03, 2018

Feb. 03, 2018

$ 297,809

$ 309,215

Less allowances

^[1]

11,703

49,219

Accounts receivable, net

286,106

259,996

Accrued expenses

Allowance for sales returns

26,100

2,900

Allowance for markdowns | Accrued expenses

11,200

Trade receivables

282,919

290,478

Royalty receivables

8,437

5,504

Other receivables

Allowance to write down inventories to the lower of cost or net realizable value

$ 6,453

$ 13,233

[1]

Inventories (Details) - USD ($)
$ in Thousands

Nov. 03, 2018

Feb. 03, 2018

Inventories

Raw materials

$ 1,360

$ 604

Work in progress

166

Finished goods

^[1]

546,991

427,684

Inventories

548,517

428,304

26,700

$ 29,900

Other current assets

Inventories

Cost of sales returns

$ 10,400

[1]

Income Taxes (Details) - USD ($) $ in Millions		3 Months Ended	9 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Nov. 28, 2018	Nov. 03, 2018	Nov. 03, 2018	Oct. 28, 2017	Feb. 03, 2018
Income Tax Disclosure [Abstract]
Effective income tax rate (as a percent)			61.70%	508.60%
Transition Tax
Reversal of estimated transition tax		$ (19.6)
Aggregate accruals for uncertain tax positions, including penalties and interest		18.4	$ 18.4		$ 19.0
Accrued expenses
Transition Tax
Current portion related to transition tax		$ 0.0	$ 0.0		1.9
Other long-term liabilities
Transition Tax
Long-term portion related to transition tax					$ 17.7
Pro Forma \| Subsequent Events
Transition Tax
Additional income tax expense	$ 12.8

Segment Information (Details)
$ in Thousands, € in Millions

3 Months Ended

9 Months Ended

Nov. 03, 2018

USD ($)

Oct. 28, 2017

USD ($)

Nov. 03, 2018

EUR (€)

segment

Nov. 03, 2018

USD ($)

segment

Oct. 28, 2017

USD ($)

Number of reportable segments | segment

^[1],[2]

$ 605,407

$ 548,953

$ 1,772,567

$ 1,571,590

Net gains on lease terminations

^[1],[3]

(21,505)

(412)

(14,512)

(1,600)

(11,494)

152

(11,494)

Asset impairment charges

(1,277)

(2,018)

(5,017)

(6,013)

European Commission fine

(42,428)

€ (37)

(42,428)

(197,943)

(178,009)

(600,731)

(517,871)

Corporate overhead

^[1],[3]

(20,824)

(23,443)

(72,316)

(67,403)

Reconciling items

Net gains on lease terminations

^[4]

(11,494)

152

(11,494)

Asset impairment charges

^[5]

(1,277)

(2,018)

(5,017)

(6,013)

European Commission fine

^[6]

(42,428)

Americas Retail | Operating Segments

186,925

187,021

555,390

561,903

Americas Wholesale | Operating Segments

^[1],[7]

3,799

(2,414)

3,701

(27,550)

52,698

45,636

127,630

114,151

Europe | Operating Segments

^[1],[7]

10,392

8,562

21,743

20,783

254,037

221,230

771,470

641,833

Asia | Operating Segments

^[3],[7]

7,410

9,095

17,608

38,147

89,461

74,322

256,298

200,436

Licensing | Operating Segments

^[7]

1,938

2,954

7,637

5,734

^[1],[2]

22,286

20,744

61,779

53,267

^[1],[7]

19,485

18,346

54,408

46,196

Operating Segments

Accounting Standards Update 2014-09 | Impact from adoption of new revenue recognition guidance

^[1],[3]

43,024

$ 36,543

105,097

$ 83,310

2,700

7,100

(200)

(100)

Accounting Standards Update 2014-09 | Impact from adoption of new revenue recognition guidance | Corporate overhead

(2,500)

(7,200)

Accounting Standards Update 2014-09 | Impact from adoption of new revenue recognition guidance | Americas Retail | Operating Segments

(600)

(1,700)

Accounting Standards Update 2014-09 | Impact from adoption of new revenue recognition guidance | Americas Wholesale | Operating Segments

(1,000)

(3,300)

Accounting Standards Update 2014-09 | Impact from adoption of new revenue recognition guidance | Licensing | Operating Segments

(600)

(1,500)

Net royalties | Accounting Standards Update 2014-09 | Impact from adoption of new revenue recognition guidance | Licensing | Operating Segments

(300)

(700)

$ 2,700

$ 7,100

[1]	During the first quarter of fiscal 2019, the Company adopted a comprehensive new revenue recognition standard using a modified retrospective method that does not restate prior periods to be comparable to the current period presentation. The adoption of this guidance primarily impacted the presentation of advertising contributions received from the Company’s licensees and the related advertising expenditures incurred by the Company. The adoption of this guidance resulted in an increase in net royalty revenue within the Company’s Licensing segment of $2.7 million, as well as an increase in SG&A expenses in our Americas Retail, Americas Wholesale and Licensing segments as well as corporate overhead of $1.0 million, $0.6 million, $0.3 million and $0.6 million, respectively, during the three months ended November 3, 2018 compared to the same prior-year period. The net favorable impact on loss from operations was approximately $0.2 million during the three months ended November 3, 2018 compared to the same prior-year period. During the nine months ended November 3, 2018, the adoption of this guidance resulted in an increase in net royalty revenue within the Company’s Licensing segment of $7.1 million, as well as an increase in SG&A expenses in our Americas Retail, Americas Wholesale and Licensing segments as well as corporate overhead of $3.3 million, $1.5 million, $0.7 million and $1.7 million, respectively, during the nine months ended November 3, 2018 compared to the same prior-year period. The net unfavorable impact on loss from operations was approximately $0.1 million during the nine months ended November 3, 2018 compared to the same prior-year period. Refer to Note 1 for more information regarding the impact from the adoption of this new standard.
[2]	During the fourth quarter of fiscal 2018, the Company reclassified net royalties received on the Company’s inventory purchases of licensed product from net revenue to cost of product sales to reflect its treatment as a reduction of the cost of such licensed product. Accordingly, net revenue for the three and nine months ended October 28, 2017 has been adjusted to conform to the current period presentation. This reclassification had no impact on previously reported loss from operations.
[3]	During the first quarter of fiscal 2019, the Company adopted new authoritative guidance which requires that the non-service components of net periodic defined benefit pension cost be presented outside of earnings (loss) from operations. Accordingly, loss from operations and segment results for the three and nine months ended October 28, 2017 have been adjusted to conform to the current period presentation.
[4]	During the nine months ended November 3, 2018, the Company recorded net gains on lease terminations related primarily to the early termination of certain lease agreements in North America. The net gains on lease terminations were recorded during the three months ended May 5, 2018. During the nine months ended October 27, 2018, the Company recorded net losses on lease termination related primarily to the modification of certain lease agreements held with a common landlord in North America. Refer to Note 1 for more information regarding the net gains (losses) on lease terminations.
[5]	During each of the periods presented, the Company recognized asset impairment charges for certain retail locations resulting from under-performance and expected store closures. Refer to Note 14 for more information regarding these asset impairment charges.
[6]	During the third quarter of fiscal 2019, the Company recorded a charge of €37.0 million euro ($42.4 million) related to an estimated fine expected to be imposed on the Company by the European Commission related to its inquiry concerning possible violations of European Union competition rules by the Company. Refer to Note 12 for further information.
[7]	During the first quarter of fiscal 2019, the Company changed the segment accountability for funds received from licensees on the Company’s purchases of its licensed products. These amounts were treated as a reduction of cost of product sales within the Licensing segment but now are considered in the results of the segments that control the respective purchases for purposes of segment performance evaluation. Accordingly, segment results for the three and nine months ended October 28, 2017 have been adjusted to conform to the current period presentation.

Segment Information (Details 2) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Nov. 03, 2018

Oct. 28, 2017

Nov. 03, 2018

Oct. 28, 2017

^[1],[2]

$ 605,407

$ 548,953

$ 1,772,567

$ 1,571,590

U.S.

181,113

170,068

519,547

507,239

Italy

65,050

67,561

213,336

195,955

Canada

49,961

53,381

136,296

142,905

South Korea

40,623

41,709

114,706

114,547

Other foreign countries

Net after-tax derivative activity recorded in accumulated other comprehensive income (loss)

$ 268,660

$ 216,234

$ 788,682

$ 610,944

[1]

[2]

Borrowings and Capital Lease Obligations (Details)			9 Months Ended		12 Months Ended
Borrowings and Capital Lease Obligations (Details)	Feb. 16, 2016 USD ($)	Jun. 23, 2015 USD ($)	Nov. 03, 2018 USD ($) facility	Oct. 28, 2017 USD ($)	Feb. 03, 2018 USD ($)
Borrowings and capital lease obligations
Mortgage debt, maturing monthly through January 2026			$ 19,885,000		$ 20,323,000
Capital lease obligations			17,031,000		18,589,000
Other			2,876,000		3,129,000
Total debt and capital lease obligations			39,792,000		42,041,000
Less current installments			3,538,000		2,845,000
Long-term debt and capital lease obligations			36,254,000		39,196,000
Mortgage Debt
Mortgage debt, maturing monthly through January 2026			19,885,000		20,323,000
Capital Lease
Capital lease obligations incurred			1,172,000	$ 18,042,000
Capital lease obligations			$ 17,031,000		18,589,000
Interest rate swap \| Derivatives designated as hedging instruments \| Cash flow hedges
Mortgage Debt
Fixed rate of interest rate swap derivative (as a percent)			3.06%
Europe \| Foreign line of credit
Credit Facilities
Current borrowing capacity			$ 87,100,000
Credit Facility, outstanding amount			$ 0
Number of credit facilities subject to minimum net equity requirement \| facility			1
Maximum borrowing capacity of the credit facility which is subject to a minimum net equity requirement			$ 39,900,000
Europe \| Foreign line of credit \| Minimum
Credit Facilities
Interest rate (as a percent)			1.10%
Europe \| Foreign line of credit \| Maximum
Credit Facilities
Interest rate (as a percent)			5.00%
Europe \| Documentary letters of credit \| Foreign line of credit
Credit Facilities
Letters of credit outstanding			$ 0
Mortgage debt \| Building \| U.S.
Borrowings and capital lease obligations
Mortgage debt, maturing monthly through January 2026	$ 21,500,000.0		19,885,000		20,323,000
Mortgage Debt
Debt maturity period (in years)	10 years
Mortgage debt, maturing monthly through January 2026	$ 21,500,000.0		19,885,000		20,323,000
Debt amortization period (in years)	25 years
Debt issuance costs			$ 100,000		100,000
Mortgage debt \| Building \| U.S. \| LIBOR
Mortgage Debt
Interest rate margin (as a percent)			1.50%
Mortgage debt \| Building \| U.S. \| Interest rate swap
Mortgage Debt
Fair value of cash flow hedge interest rate swap asset			$ 1,707,000		1,460,000
Mortgage debt \| Building \| U.S. \| Interest rate swap \| Derivatives designated as hedging instruments \| Cash flow hedges
Mortgage Debt
Fixed rate of interest rate swap derivative (as a percent)	3.06%		3.06%
Capital lease \| Equipment \| Netherlands
Borrowings and capital lease obligations
Capital lease obligations			$ 14,900,000		17,300,000
Capital Lease
Capital lease obligations incurred					$ 17,000,000
Effective interest rate on capital lease obligations					6.00%
Capital lease obligations			14,900,000		$ 17,300,000
Capital lease \| Computer hardware and software
Borrowings and capital lease obligations
Capital lease obligations			2,100,000		1,300,000
Capital Lease
Capital lease obligations			2,100,000		$ 1,300,000
Credit Facility
Credit Facilities
Credit Facility, outstanding amount			$ 0
Percentage of borrowings exceeding borrowing base that require the Company to comply with a fixed charge coverage ratio on a trailing four-quarter basis			80.00%
Credit Facility \| Revolving Credit Facility
Mortgage Debt
Debt maturity period (in years)		5 years
Credit Facilities
Maximum borrowing capacity		$ 150,000,000
Current borrowing capacity			$ 134,000,000
Credit Facility \| Accordion feature
Credit Facilities
Maximum borrowing capacity		150,000,000
Credit Facility \| U.S. line of credit \| Base rate \| Minimum
Mortgage Debt
Interest rate margin (as a percent)			0.25%
Credit Facility \| U.S. line of credit \| Base rate \| Maximum
Mortgage Debt
Interest rate margin (as a percent)			0.75%
Credit Facility \| U.S. line of credit \| LIBOR
Credit Facilities
Interest rate margin added to respective base rate			1.00%
Credit Facility \| U.S. line of credit \| LIBOR \| Minimum
Mortgage Debt
Interest rate margin (as a percent)			1.25%
Credit Facility \| U.S. line of credit \| LIBOR \| Maximum
Mortgage Debt
Interest rate margin (as a percent)			1.75%
Credit Facility \| U.S. line of credit \| Federal funds rate
Credit Facilities
Interest rate margin added to respective base rate			0.50%
Credit Facility \| Standby letters of credit
Credit Facilities
Letters of credit outstanding			$ 2,000,000
Credit Facility \| Documentary letters of credit
Credit Facilities
Letters of credit outstanding			$ 0
Credit Facility \| Canada \| Foreign line of credit
Credit Facilities
Maximum borrowing capacity		$ 50,000,000
Credit Facility \| Canada \| Foreign line of credit \| Prime rate \| Minimum
Mortgage Debt
Interest rate margin (as a percent)			0.25%
Credit Facility \| Canada \| Foreign line of credit \| Prime rate \| Maximum
Mortgage Debt
Interest rate margin (as a percent)			0.75%
Credit Facility \| Canada \| Foreign line of credit \| Canadian BA rate
Credit Facilities
Interest rate margin added to respective base rate			1.00%
Credit Facility \| Canada \| Foreign line of credit \| Canadian BA rate \| Minimum
Mortgage Debt
Interest rate margin (as a percent)			1.25%
Credit Facility \| Canada \| Foreign line of credit \| Canadian BA rate \| Maximum
Mortgage Debt
Interest rate margin (as a percent)			1.75%
Credit Facility \| Canada \| Foreign line of credit \| Bank of Canada overnight rate
Credit Facilities
Interest rate margin added to respective base rate			0.50%

Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands					3 Months Ended		9 Months Ended
	Jun. 25, 2018	Mar. 30, 2018	Apr. 28, 2017	Mar. 29, 2017	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017
Disclosure of share-based compensation information under stock plans
Share-based compensation expense					$ 4,545	$ 4,260	$ 12,534	$ 12,410
Share-Based Compensation, Additional Disclosures
Unrecognized compensation cost related to nonvested stock options					4,200		$ 4,200
Weighted average fair values of stock options granted during the period (in dollars per share)							$ 5.89	$ 1.57
Granted (in shares)		431,371		1,283,175
Employee Stock Purchase Plan
Disclosure of share-based compensation information under stock plans
Share-based compensation expense					29	31	$ 189	$ 110
Stock options
Disclosure of share-based compensation information under stock plans
Share-based compensation expense					$ 824	571	$ 2,191	1,761
Share-Based Compensation, Additional Disclosures
Weighted average period for recognition of unrecognized compensation cost (in years/months/days)					1 year 8 months 10 days		1 year 8 months 10 days
Stock awards or units
Disclosure of share-based compensation information under stock plans
Share-based compensation expense					$ 3,692	$ 3,658	$ 10,154	$ 10,539
Share-Based Compensation, Additional Disclosures
Unrecognized compensation cost related to nonvested stock awards/units					$ 27,200		$ 27,200
Weighted average period for recognition of unrecognized compensation cost (in years/months/days)					1 year 8 months		1 year 7 months
Number of Units
Granted (in shares)		490,528		707,675
Performance-based or market-based units
Number of Units
Granted (in shares)	619,578.000		1,056,042
Performance-based units
Number of Units
Nonvested at the beginning of the period (in shares)							1,300,921
Granted (in shares)							489,646
Vested (in shares)							(141,625)
Forfeited (in shares)							(52,312)
Nonvested at the end of the period (in shares)					1,596,630		1,596,630
Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)							$ 14.01
Granted (in dollars per share)							21.83
Vested (in dollars per share)							15.07
Forfeited (in dollars per share)							15.37
Nonvested at the end of the period (in dollars per share)					$ 16.27		$ 16.27
Performance units \| Vesting, Tranche One
Share-Based Compensation, Additional Disclosures
Vesting period (in years)							1 year
Performance units \| Vesting, annual vesting periods after initial vesting period \| Minimum
Share-Based Compensation, Additional Disclosures
Vesting period (in years)							2 years
Performance units \| Vesting, annual vesting periods after initial vesting period \| Maximum
Share-Based Compensation, Additional Disclosures
Vesting period (in years)							3 years
Target performance units
Share-Based Compensation, Additional Disclosures
Vesting period (in years)							3 years
Target performance units \| Minimum
Share-Based Compensation, Additional Disclosures
Vesting rights based on the satisfaction of certain performance or market-based criteria (as a percentage)							0.00%
Target performance units \| Maximum
Share-Based Compensation, Additional Disclosures
Vesting rights based on the satisfaction of certain performance or market-based criteria (as a percentage)							200.00%
Market-based units
Share-Based Compensation, Additional Disclosures
Vesting period (in years)							3 years
Period which award is subject to a market condition (in years)							3 years
Number of Units
Nonvested at the beginning of the period (in shares)							388,477
Granted (in shares)							129,932
Vested (in shares)							0
Forfeited (in shares)							0
Nonvested at the end of the period (in shares)					518,409		518,409
Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)							$ 12.28
Granted (in dollars per share)							20.28
Vested (in dollars per share)							0.00
Forfeited (in dollars per share)							0.00
Nonvested at the end of the period (in dollars per share)					$ 14.28		$ 14.28
Market-based units \| Minimum
Share-Based Compensation, Additional Disclosures
Vesting rights based on the satisfaction of certain performance or market-based criteria (as a percentage)							0.00%
Market-based units \| Maximum
Share-Based Compensation, Additional Disclosures
Vesting rights based on the satisfaction of certain performance or market-based criteria (as a percentage)							150.00%

Related Party Transactions (Details) $ in Millions	9 Months Ended
Related Party Transactions (Details) $ in Millions	Nov. 03, 2018 USD ($) lease	Oct. 28, 2017 USD ($)
Marciano Trusts
Related Party Transactions
Number of leases under related party lease agreements \| lease	4
Marciano Trusts \| Related party leases
Related Party Transactions
Expenses under related party arrangement	$ 3.7	$ 3.6
MPM Financial LLC \| Payments for aircraft charter
Related Party Transactions
Payments under related party agreement	$ 1.0	$ 0.7

Commitments and Contingencies (Details)	9 Months Ended
Commitments and Contingencies (Details)	Nov. 03, 2018
Retail store leases \| Minimum
Leases
Percentage of annual sales volume used for incremental rent on certain retail location leases	4.00%
Retail store leases \| Maximum
Leases
Percentage of annual sales volume used for incremental rent on certain retail location leases	20.00%
Retail concession leases \| Average
Leases
Percentage of annual sales volume used for incremental rent on certain retail location leases	35.00%

Commitments and Contingencies (Details 3) $ in Thousands, € in Millions			9 Months Ended
	Nov. 08, 2013 USD ($)	Jul. 19, 2012 USD ($)	Nov. 03, 2018 EUR (€) subsidiary	Nov. 03, 2018 USD ($) subsidiary	Nov. 03, 2018 USD ($)	Nov. 06, 2017 EUR (€)	Nov. 06, 2017 USD ($)	Jan. 30, 2015 trademark	May 02, 2013 trademark
Loss contingency
Estimated charges accrued			€ 37.0		$ 42,400
Judicial ruling \| U.S. \| Gucci America, Inc.
Loss contingency
Damages sought in litigation case		$ 26,000
Accounting profits sought by plaintiff as compensation		99,000
Monetary damages awarded by court		2,300
Monetary damages awarded by court to be paid by the Company's licensees		$ 2,300
Settled litigation \| Italy \| Europe \| Customs tax audit and appeals
Loss contingency
Monetary damages awarded by court			1.3	$ 1,400
Litigation Settlement, Amount Awarded from Other Party			(6.3)	(7,200)
Settled litigation \| Italy \| Gucci America, Inc.
Loss contingency
Number of Italian trademark registrations to be cancelled by plaintiff \| trademark									3
Number of European Community trademark registrations to be cancelled by plaintiff \| trademark									4
Settled litigation \| China \| Gucci America, Inc.
Loss contingency
Damages sought in litigation case	$ 80
Settled litigation \| France \| Gucci America, Inc.
Loss contingency
Number of European Community trademark registrations to be cancelled by plaintiff \| trademark								2
Number of international trademark registrations to be cancelled by plaintiff \| trademark								1
Pending litigation \| Italy \| Europe \| Customs tax audit and appeals
Loss contingency
Monetary damages awarded by court			€ 2.1	$ 2,400
Number of subsidiaries under audit by the Italian Customs Agency \| subsidiary			1	1
Customs tax assessments including potential penalties and interest			€ 9.8		$ 11,400
Pending litigation \| Italy \| First set of appeals \| Europe \| Customs tax audit and appeals
Loss contingency
Canceled customs tax assessments			€ 9.7	$ 11,000
Minimum \| Pending litigation \| European Commission Fine
Loss contingency
Customs tax assessments including potential penalties and interest						€ 37.0	$ 42,400
Maximum \| Pending litigation \| European Commission Fine
Loss contingency
Customs tax assessments including potential penalties and interest						€ 40.6	$ 46,600

Defined Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Defined Benefit Plans (Details) - USD ($) $ in Thousands	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017	Feb. 03, 2018
Defined Benefit Plans
Selling, general and administrative expenses	$ 197,943	$ 178,009	$ 600,731	$ 517,871
SERP
Defined Benefit Plans
SERP benefit payments	(400)	(400)	(1,300)	(1,300)
Components of net periodic defined benefit pension cost
Service cost	0	0	0	0
Interest cost	471	461	1,415	1,382
Expected return on plan assets	0	0	0	0
Net amortization of unrecognized prior service credit	0	0	0	0
Net amortization of actuarial losses	47	38	140	114
Net periodic defined benefit pension cost	518	499	1,555	1,496
SERP \| Other income
Defined Benefit Plans
Gain (loss) as a result of changes in value of the insurance policy investments, included in other income	(2,300)	(1,600)	(1,600)	(5,500)
Pension
Components of net periodic defined benefit pension cost
Service cost	730	492	2,224	1,452
Interest cost	525	483	1,579	1,446
Expected return on plan assets	(72)	(48)	(221)	(143)
Net amortization of unrecognized prior service credit	(7)	(7)	(21)	(20)
Net amortization of actuarial losses	150	116	453	344
Net periodic defined benefit pension cost	1,326	1,036	4,014	3,079
Pension \| Foreign Plan
Defined Benefit Plans
Projected benefit obligation	27,900		27,900		$ 26,400
Plan assets at fair value	22,400		22,400		21,400
Components of net periodic defined benefit pension cost
Service cost	730	492	2,224	1,452
Interest cost	54	22	164	64
Expected return on plan assets	(72)	(48)	(221)	(143)
Net amortization of unrecognized prior service credit	(7)	(7)	(21)	(20)
Net amortization of actuarial losses	103	78	313	230
Net periodic defined benefit pension cost	808	537	2,459	1,583
Other assets \| SERP
Defined Benefit Plans
Cash surrender values of the insurance policies held in a rabbi trust	61,600		61,600		64,500
Accrued expenses and other long-term liabilities \| SERP
Defined Benefit Plans
Projected benefit obligation	54,900		54,900		54,800
Other long-term liabilities \| Pension \| Foreign Plan
Defined Benefit Plans
Net liability	$ 5,500		$ 5,500		$ 5,000
Accounting Standards Update 2017-07
Defined Benefit Plans
Selling, general and administrative expenses		$ (500)		$ (1,600)

Fair Value Measurements (Details) $ in Thousands, € in Millions	9 Months Ended		12 Months Ended
	Nov. 03, 2018 EUR (€)	Nov. 03, 2018 USD ($)	Feb. 03, 2018 EUR (€)	Feb. 03, 2018 USD ($)	Nov. 03, 2018 USD ($)	Feb. 03, 2018 USD ($)
Private equity fund
Investment in private equity fund
Payments to acquire investment in private equity fund	€ 0.9	$ 1,100	€ 0.5	$ 500
Unfunded commitment to invest in private equity fund	3.6				$ 4,100
Private equity fund \| Other assets
Investment in private equity fund
Investment in private equity fund	1.3		€ 0.5		1,400	$ 600
Private equity fund \| Other expense
Investment in private equity fund
Unrealized loss on investment in private equity fund	€ 0.1	$ 200
Assets and liabilities measured at fair value on a recurring basis
Assets:
Foreign exchange currency contracts, Assets					7,527	51
Interest rate swap					1,707	1,460
Total Assets					9,234	1,511
Liabilities:
Foreign exchange currency contracts, Liabilities					7	18,089
Deferred compensation obligations					14,197	13,476
Total Liabilities					14,204	31,565
Assets and liabilities measured at fair value on a recurring basis \| Level 1
Assets:
Foreign exchange currency contracts, Assets					0	0
Interest rate swap					0	0
Total Assets					0	0
Liabilities:
Foreign exchange currency contracts, Liabilities					0	0
Deferred compensation obligations					0	0
Total Liabilities					0	0
Assets and liabilities measured at fair value on a recurring basis \| Level 2
Assets:
Foreign exchange currency contracts, Assets					7,527	51
Interest rate swap					1,707	1,460
Total Assets					9,234	1,511
Liabilities:
Foreign exchange currency contracts, Liabilities					7	18,089
Deferred compensation obligations					14,197	13,476
Total Liabilities					14,204	31,565
Assets and liabilities measured at fair value on a recurring basis \| Level 3
Assets:
Foreign exchange currency contracts, Assets					0	0
Interest rate swap					0	0
Total Assets					0	0
Liabilities:
Foreign exchange currency contracts, Liabilities					0	0
Deferred compensation obligations					0	0
Total Liabilities					$ 0	$ 0

Fair Value Measurements (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017
Asset impairment charge
Period of time new regular retail locations in penetrated markets would need to be opened to be considered for impairment			1 year
North America and Europe \| Retail locations
Asset impairment charge
Asset impairment charges	$ 1,277	$ 2,018	$ 5,017	$ 6,013

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Nov. 03, 2018	Feb. 03, 2018
ASSETS:
Derivatives, assets	$ 9,234	$ 1,511
LIABILITIES:
Derivatives, liabilities	7	18,089
Derivatives designated as hedging instruments \| Cash flow hedges
ASSETS:
Derivatives, assets	6,961	1,501
Derivatives designated as hedging instruments \| Foreign exchange currency contracts \| Other current assets/Other assets \| Cash flow hedges
ASSETS:
Derivatives, assets	5,254	41
Derivatives designated as hedging instruments \| Foreign exchange currency contracts \| Accrued expenses/Other long-term liabilities \| Cash flow hedges
LIABILITIES:
Derivatives, liabilities	5	13,789
Derivatives designated as hedging instruments \| Interest rate swap \| Other assets \| Cash flow hedges
ASSETS:
Derivatives, assets	1,707	1,460
Derivatives not designated as hedging instruments \| Foreign exchange currency contracts \| Other current assets
ASSETS:
Derivatives, assets	2,273	10
Derivatives not designated as hedging instruments \| Foreign exchange currency contracts \| Accrued expenses
LIABILITIES:
Derivatives, liabilities	$ 2	$ 4,300

Derivative Financial Instruments (Details 2) - USD ($)	9 Months Ended
Derivative Financial Instruments (Details 2) - USD ($)	Nov. 03, 2018	Aug. 04, 2018	Feb. 03, 2018	Oct. 28, 2017	Jul. 29, 2017	Jan. 28, 2017
Forward contracts designated as hedging instruments
Net unrealized gain (loss) in accumulated other comprehensive income (loss) related to cash flow hedges	$ (2,873,000)	$ 142,000	$ 14,369,000	$ 5,767,000	$ 8,751,000	$ (5,400,000)
Foreign exchange currency cash flow hedge unrealized gain to be recognized in cost of product sales over the following 12 months	$ (800,000)
Cash flow hedges \| Europe \| Derivatives designated as hedging instruments
Forward contracts designated as hedging instruments
U.S. dollar forward contracts outstanding, maximum remaining maturity period (in months)	10 months
Foreign exchange currency contracts
Forward contracts designated as hedging instruments
Net unrealized gain (loss) in accumulated other comprehensive income (loss) related to cash flow hedges	$ (1,600,000)
Foreign exchange currency contracts \| Cash flow hedges \| Europe \| Derivatives designated as hedging instruments
Forward contracts designated as hedging instruments
Total notional amount of derivatives purchased	39,300,000
Notional amount of derivative outstanding	93,700,000		145,800,000
Foreign exchange currency contracts \| Cash flow hedges \| Canada \| Derivatives designated as hedging instruments
Forward contracts designated as hedging instruments
Notional amount of derivative outstanding	8,800,000		$ 38,700,000
Interest rate swap
Forward contracts designated as hedging instruments
Net unrealized gain (loss) in accumulated other comprehensive income (loss) related to cash flow hedges	$ 1,300,000
Interest rate swap \| Cash flow hedges \| Derivatives designated as hedging instruments
Forward contracts designated as hedging instruments
Notional amount of derivative outstanding						$ 21,500,000.00
Fixed rate of interest rate swap designated as a cash flow hedge (as a percent)	3.06%

Derivative Financial Instruments (Details 3) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Nov. 03, 2018

Oct. 28, 2017

Nov. 03, 2018

Oct. 28, 2017

Beginning balance gain (loss)

$ (142)

$ (8,751)

$ (14,369)

$ 5,400

Net gains (losses) from changes in cash flow hedges

1,596

2,749

12,175

(10,220)

Net (gains) losses reclassified into loss

1,419

235

5,067

(947)

Ending balance gain (loss)

2,873

(5,767)

2,873

(5,767)

Gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings (loss)

Gain (loss) recognized in OCI on foreign exchange currency contracts

1,630

3,215

13,690

(10,601)

Gain (loss) reclassified from accumulated OCI into earnings (loss) on foreign exchange currency contracts

^[1]

(1,618)

(5,646)

1,360

Other income/expense

Gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings (loss)

Gain (loss) recognized in OCI on foreign exchange currency contracts

(958)

Gain (loss) reclassified from accumulated OCI into earnings (loss) on foreign exchange currency contracts

^[1]

(337)

(201)

(244)