Annual report pursuant to Section 13 and 15(d)

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

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QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
12 Months Ended
Jan. 30, 2021
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)  
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

16. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

Unaudited quarterly results of operations for fiscal 2020 and fiscal 2019 were as follows (in thousands, except per share data):

Fiscal 2020

First

Second

Third

Fourth

Quarter

Quarter

Quarter

Quarter

Net sales

 

$

799,888

$

1,148,170

$

1,406,212

$

1,916,842

Cost of sales and occupancy expense

 

578,066

805,658

824,496

1,106,815

Gross profit

 

221,822

342,512

581,716

810,027

Selling, general and administrative

 

281,341

289,053

373,193

447,032

Restructure and impairment charges (1)

9,388

19,447

Operating (loss) income (2)

 

(60,678)

53,273

198,951

341,994

Net (loss) income (3)

 

(63,505)

(7,757)

111,122

255,075

Diluted (loss) earnings per common share

$

(0.43)

$

(0.05)

$

0.74

$

1.72

Fiscal 2019

First

Second

Third

Fourth

Quarter

Quarter

Quarter

Quarter

Net sales

 

$

1,093,720

$

1,033,689

$

1,222,021

$

1,722,608

Cost of sales and occupancy expense

 

676,080

666,703

780,387

1,076,610

Gross profit

 

417,640

366,986

441,634

645,998

Selling, general and administrative

 

320,597

290,074

322,807

370,803

Restructure and impairment charges (4)

 

3,087

3,869

41,376

Operating income

92,730

71,300

76,049

274,957

Net income

 

37,691

24,547

28,705

181,651

Diluted earnings per common share

$

0.24

$

0.16

$

0.19

$

1.24

(1) Includes impairment charges related to the 13 underperforming stores in the fourth quarter of fiscal 2020 and impairment charges related to operating lease assets and leasehold improvements primarily as a result of our decision to relocate our corporate offices in Irving, Texas in the third quarter of fiscal 2020.  
(2) Includes charges related to the liquidation of Darice totaling $52.5 million in the second quarter of fiscal 2020 and income of $6.8 million and $0.5 million in the third and fourth quarter of fiscal 2020, respectively.  
(3) In the third quarter of fiscal 2020, we a recorded a loss on the early extinguishment of debt of $22.0 million related to the refinancing of our amended and restated term loan credit facility.
(4) During the first, second and third quarter of fiscal 2019, we recorded restructure charges of $3.1 million, $3.9 million and $1.3 million, respectively, related to the closure of our Pat Catan’s stores. The third quarter of fiscal 2019 also includes $40.1 million of impairment charges primarily related to our Darice wholesale business.

We report on the basis of a 52-week or 53-week fiscal year, which ends on the Saturday closest to January 31. Our interim periods each contain 13 weeks ending on the Saturday closest to April 30, July 31 and October 31.