Income Taxes (Tables)

12 Months Ended

Jan. 31, 2026

The following table presents the provision for income taxes from continuing operations:


	Fiscal Year ended
	2025		2024		2023
Current tax expense (benefit):
Federal	$	22.2	$	1.9	$	(0.7)
State	9.3		3.6		1.2
Foreign	0.8		2.2		6.0
	32.3		7.7		6.5
Deferred tax (benefit) expense:
Federal	(48.4)		—		—
State	(21.7)		—		—
Foreign	3.4		(1.8)		(0.1)
	(66.7)		(1.8)		(0.1)
Total income tax (benefit) expense	$	(34.4)	$	5.9	$	6.4

Schedule of Components of Earnings Before Income Tax expense

The following table presents the components of income/(loss) from continuing operations before income taxes:


	Fiscal Year ended
	2025		2024		2023
United States	$	432.9	$	194.2	$	48.6
Foreign	(48.9)		(57.0)		(35.5)
Total	$	384.0	$	137.2	$	13.1

Schedule of Income Tax Disclosure Reconciliation of Taxes


	Fiscal Year Ended 2025
	Amount		Percent
Federal statutory tax rate	$	80.7	21.1	%
Domestic federal
Tax credits	(1.0)		(0.3)
Nontaxable or nondeductible items:
Non-deductible interest from warrant distribution	8.9		2.3
Other	(0.4)		(0.1)
Cross-border tax laws	(0.3)		(0.1)
Other reconciling items:
Capital loss carryforward	(4.8)		(1.3)
Other	1.6		0.4
Change in valuation allowance	(117.5)		(30.6)
State income taxes, net of federal effect (1)	(14.3)		(3.7)
Foreign tax effects
Canada
Impairment loss	5.0		1.3
Tax effect on net operating losses for which no benefit is recognized	9.3		2.4
Change in valuation allowance	(8.6)		(2.2)
France
Tax effect on net operating losses for which no benefit is recognized	(2.3)		(0.6)
Change in valuation allowance	13.0		3.4
Ireland
Tax effect on net operating losses for which no benefit is recognized	19.1		5.0
Change in valuation allowance	(22.6)		(5.9)
Luxembourg
Tax effect on net operating losses for which no benefit is recognized	(266.4)		(69.3)
Change in valuation allowance	266.1		69.3
Other foreign jurisdictions	1.9		0.4
Change in unrecognized tax benefits	(1.8)		(0.5)
Effective tax rate	$	(34.4)	(9.0)	%

(1) State and local taxes in Arizona, Illinois, New Jersey, New York, and New York City accounted for more than 50% of the tax effect in this category.

The following table provides the disclosures required before adopting ASU 2023-09 and reconciles our effective tax rate with the U.S. federal tax rate:


	Fiscal Year Ended
	2024		2023
Federal statutory tax rate	21.0	%	21.0	%
State income taxes, net of federal effect	5.6		151.5
Foreign income tax rate differential	(6.4)		(35.0)
Change in valuation allowance	(28.3)		(133.4)
Change in unrecognized tax benefits	0.9		(20.2)
Withholding tax expense	1.7		5.0
Stock-based compensation	(0.1)		30.5
Other (including permanent differences)(1)	9.9		29.5
	4.3	%	48.9	%

__________________

(1) Other is comprised of numerous items, none of which is individually or in the aggregate greater than 5% of income tax expense calculated at the statutory rate.

Schedule of Income Tax Disclosures, Cash Paid for Income Taxes

Upon adoption of ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, cash paid for income taxes, net of refunds, disaggregated by jurisdiction, was as follows:



	Fiscal Year Ended 2025

Federal	$	28.4
State	2.6
Foreign	2.8
Total cash paid for income taxes, net of refunds	$	33.8

Schedule of Components of Deferred Tax Assets and Liabilities

Differences between financial accounting principles and tax laws cause differences between the bases of certain assets and liabilities for financial reporting purposes and tax purposes. The tax effects of these differences, to the extent they are temporary, are recorded as deferred tax assets and liabilities which are presented in the table below.


	January 31, 2026		February 1, 2025
Deferred tax asset:
Inventory	$	7.6	$	7.7
Deferred rents	0.2		0.9
Property and equipment	1.8		1.2
Operating lease liabilities	73.1		87.5
Stock-based compensation	1.6		2.2
Net operating losses and other loss carryforwards	383.7		227.7
Customer liabilities	21.1		25.0
Credits	2.2		4.2
Accrued compensation	4.2		3.5
Intangible assets	0.8		1.9
Goodwill	0.1		0.3
Digital assets and related receivables	29.1		—
Other	25.6		29.5
Total deferred tax assets	551.1		391.6
Valuation allowance	(403.2)		(291.3)
Total deferred tax assets, net	147.9		100.3
Deferred tax liabilities:
Prepaid expenses	(0.2)		(0.2)
Operating lease right-of-use assets	(60.9)		(82.0)

Total deferred tax liabilities	(61.1)		(82.2)
Net deferred tax assets	$	86.8	$	18.1
The above amounts are reflected in the consolidated financial statements as:
Deferred income taxes - assets	$	86.8	$	18.1
Deferred income taxes - liabilities	$	—	$	—

Schedule of Unrecognized Tax Benefits Roll Forward

The following table presents a reconciliation of the changes in the gross balances of unrecognized tax benefits:


	Fiscal Year ended
	2025		2024		2023
Beginning balance of unrecognized tax benefits	$	7.5	$	6.8	$	9.5
Increases related to current period tax positions	0.3		0.8		0.6
Increase (decrease) related to prior period tax positions	(0.2)		0.1		0.8

Reductions as a result of a lapse of the applicable statute of limitations	(0.4)		(0.2)		(1.1)
Reductions as a result of settlements with taxing authorities	(2.2)		—		(3.0)
Ending balance of unrecognized tax benefits	$	5.0	$	7.5	$	6.8