GOODWILL AND INTANGIBLE ASSETS
GOODWILL
The following table presents activity related to goodwill by segment:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (in thousands) | January 31, 2026 | | February 1, 2025 |
| Goodwill | | Accumulated Impairments | | Net | | Goodwill | | Accumulated Impairments | | Net |
| Balance at beginning of period: | | | | | | | | | | | |
| Retail | $ | 138,297 | | | $ | (38,015) | | | $ | 100,282 | | | $ | 134,583 | | | $ | (40,928) | | | $ | 93,655 | |
| Brand Portfolio | 50,093 | | | (19,989) | | | 30,104 | | | 50,093 | | | (19,989) | | | 30,104 | |
| 188,390 | | | (58,004) | | | 130,386 | | | 184,676 | | | (60,917) | | | 123,759 | |
| Retail segment activity: | | | | | | | | | | | |
| | | | | | | | | | | |
| Acquired Rubino goodwill | — | | | — | | | — | | | 7,067 | | | — | | | 7,067 | |
| Currency translation adjustment | 3,039 | | | (2,588) | | | 451 | | | (3,353) | | | 2,913 | | | (440) | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| 3,039 | | | (2,588) | | | 451 | | | 3,714 | | | 2,913 | | | 6,627 | |
| Balance at end of period: | | | | | | | | | | | |
| Retail | 141,336 | | | (40,603) | | | 100,733 | | | 138,297 | | | (38,015) | | | 100,282 | |
| Brand Portfolio | 50,093 | | | (19,989) | | | 30,104 | | | 50,093 | | | (19,989) | | | 30,104 | |
| $ | 191,429 | | | $ | (60,592) | | | $ | 130,837 | | | $ | 188,390 | | | $ | (58,004) | | | $ | 130,386 | |
INTANGIBLE ASSETS
Intangible assets, net, consisted of the following:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (in thousands) | January 31, 2026 | | February 1, 2025 |
| Cost | | Accumulated Amortization | | Net | | Cost | | Accumulated Amortization | | Net |
| Definite-lived customer relationships | $ | 14,327 | | | $ | (6,339) | | | $ | 7,988 | | | $ | 14,243 | | | $ | (5,104) | | | $ | 9,139 | |
| Definite-lived tradename | 11,953 | | | (2,692) | | | 9,261 | | | 11,953 | | | (1,895) | | | 10,058 | |
| Indefinite-lived trademarks and tradenames | 63,993 | | | — | | | 63,993 | | | 65,442 | | | — | | | 65,442 | |
| $ | 90,273 | | | $ | (9,031) | | | $ | 81,242 | | | $ | 91,638 | | | $ | (6,999) | | | $ | 84,639 | |
Definite-lived customer relationships and tradenames have a useful life of 10 and 15 years, respectively. During each of 2025, 2024 and 2023, amortization expense for intangible assets was $1.9 million and included within operating expenses on the consolidated statements of operations. As of January 31, 2026, the estimated future annual amortization expense for the intangible assets is $1.9 million for each of the next five years.
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.