Cover Page
Cover Page - shares | 3 Months Ended | |
May 01, 2021 | Jun. 04, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 1, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-20969 | |
Entity Registrant Name | HIBBETT SPORTS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-8159608 | |
Entity Address, Address Line One | 2700 Milan Court | |
Entity Address, City or Town | Birmingham | |
Entity Address, State or Province | AL | |
Entity Address, Postal Zip Code | 35211 | |
City Area Code | 205 | |
Local Phone Number | 942-4292 | |
Title of 12(b) Security | Common Stock, $0.01 Par Value Per Share | |
Trading Symbol | HIBB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,012,057 | |
Entity Central Index Key | 0001017480 | |
Current Fiscal Year End Date | --01-30 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | May 01, 2021 | Jan. 30, 2021 | May 02, 2020 |
Current assets: | |||
Cash and cash equivalents | $ 270,852 | $ 209,290 | $ 106,205 |
Receivables, net | 14,445 | 11,905 | 20,003 |
Inventories, net | 182,371 | 202,038 | 241,984 |
Other current assets | 7,388 | 16,567 | 12,302 |
Total current assets | 475,056 | 439,800 | 380,494 |
Property and equipment, net | 107,501 | 107,159 | 97,771 |
Operating right-of-use assets | 215,804 | 216,224 | 219,436 |
Finance right-of-use assets, net | 3,092 | 3,285 | 2,548 |
Tradename intangible asset | 23,500 | 23,500 | 23,500 |
Deferred income taxes, net | 12,264 | 14,625 | 11,429 |
Other assets, net | 3,542 | 3,573 | 3,391 |
Total assets | 840,759 | 808,166 | 738,569 |
Current liabilities: | |||
Accounts payable | 105,888 | 107,215 | 98,149 |
Operating lease obligations | 58,875 | 58,613 | 66,791 |
Credit facility | 0 | 0 | 50,000 |
Finance lease obligations | 977 | 956 | 876 |
Accrued payroll expenses | 14,341 | 29,948 | 6,359 |
Other accrued expenses | 30,403 | 28,588 | 21,473 |
Total current liabilities | 210,484 | 225,320 | 243,648 |
Operating lease obligations | 185,326 | 186,133 | 185,035 |
Finance lease obligations | 2,381 | 2,599 | 1,994 |
Unrecognized tax benefits | 711 | 725 | 954 |
Other liabilities | 2,391 | 2,353 | 2,371 |
Total liabilities | 401,293 | 417,130 | 434,002 |
Stockholders' investment: | |||
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued | 0 | 0 | 0 |
Common stock, $0.01 par value, 80,000,000 shares authorized, 39,559,008, 39,379,865 and 39,255,293 shares issued at May 1, 2021, January 30, 2021, and May 2, 2020, respectively | 395 | 394 | 393 |
Paid-in capital | 198,356 | 194,534 | 190,260 |
Retained earnings | 943,718 | 858,951 | 769,315 |
Treasury stock, at cost; 23,483,504, 22,901,101 and 22,739,229 shares repurchased at May 1, 2021, January 30, 2021, and May 2, 2020, respectively | (703,003) | (662,843) | (655,401) |
Total stockholders' investment | 439,466 | 391,036 | 304,567 |
Total liabilities and stockholders' investment | $ 840,759 | $ 808,166 | $ 738,569 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | May 01, 2021 | Jan. 30, 2021 | May 02, 2020 |
Statement of Financial Position [Abstract] | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 39,559,008 | 39,379,865 | 39,255,293 |
Treasury stock, shares at cost (in shares) | 23,483,504 | 22,901,101 | 22,739,229 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 506,861,000 | $ 269,837,000 |
Cost of goods sold | $ 296,898,000 | $ 195,690,000 |
Cost of goods sold, as a percent to sales | 58.60% | 72.50% |
Gross margin | $ 209,963,000 | $ 74,147,000 |
Gross margin, as a percent to sales | 41.40% | 27.50% |
Store operating, selling, and administrative expenses | $ 91,739,000 | $ 69,673,000 |
Store operating, selling and administrative expenses, as a percent to sales | 18.10% | 25.80% |
Goodwill impairment | $ 0 | $ 19,661,000 |
Goodwill impairment, as a percent to sales | 0.00% | 7.30% |
Depreciation and amortization | $ 8,074,000 | $ 6,870,000 |
Depreciation and amortization, as a percent to sales | 1.60% | 2.50% |
Operating income (loss) | $ 110,150,000 | $ (22,057,000) |
Operating income, as a percent to sales | 21.70% | (8.20%) |
Interest expense, net | $ 99,000 | $ 170,000 |
Interest expense (income), net, as a percent to sales | 0.00% | 0.10% |
Income (loss) before provision (benefit) for income taxes | $ 110,051,000 | $ (22,227,000) |
Income before provision for income taxes, as a percent to sales | 21.70% | (8.20%) |
Provision (benefit) for income taxes | $ 25,285,000 | $ (6,940,000) |
Provision for income taxes, as a percent to sales | 5.00% | (2.60%) |
Net income (loss) | $ 84,766,000 | $ (15,287,000) |
Net income, as a percent to sales | 16.70% | (5.70%) |
Basic earnings per share (in dollars per share) | $ 5.19 | $ (0.92) |
Diluted earnings per share (in dollars per share) | $ 5 | $ (0.92) |
Weighted-average shares: | ||
Basic (in shares) | 16,325 | 16,546 |
Diluted (in shares) | 16,966 | 16,546 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ 84,766 | $ (15,287) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 8,074 | 6,870 |
Stock-based compensation | 2,053 | 1,217 |
Impairment charges | 347 | 32,648 |
Contingent earnout, net | (13,761) | (10,980) |
Other non-cash adjustments | 1,796 | (2,914) |
Changes in operating assets and liabilities: | ||
Inventories, net | 19,667 | 46,027 |
Receivables, net | (2,586) | (11,866) |
Accounts payable | (2,683) | (33,513) |
Income tax payable, net | 22,755 | (4,506) |
Other assets and liabilities | (12,068) | (3,814) |
Net cash provided by operating activities | 108,360 | 3,882 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (7,033) | (4,059) |
Other, net | 102 | 612 |
Net cash used in investing activities | (6,931) | (3,447) |
Cash Flows From Financing Activities: | ||
Proceeds under credit facilities | 0 | 117,535 |
Repayments under credit facilities | 0 | (67,535) |
Stock repurchases | (37,314) | (9,748) |
Cash used for contingent earnout | (1,239) | 0 |
Payments of finance lease obligations | (240) | (301) |
Proceeds from options exercised and purchase of shares under the employee stock purchase plan | 1,772 | 165 |
Other, net | (2,846) | (424) |
Net cash (used in) provided by financing activities | (39,867) | 39,692 |
Net increase in cash and cash equivalents | 61,562 | 40,127 |
Cash and cash equivalents, beginning of period | 209,290 | 66,078 |
Cash and cash equivalents, end of period | $ 270,852 | $ 106,205 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Stockholders Investment - USD ($) $ in Thousands | 3 Months Ended | ||
May 01, 2021 | May 02, 2020 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance-beginning of period | $ 391,036 | $ 328,983 | |
Net income (loss) | 84,766 | (15,287) | |
Issuance of shares through the Company's equity plans | 1,770 | 166 | |
Purchase of shares under the stock repurchase program | (37,314) | (9,748) | |
Settlement of net share equity awards | (2,846) | (424) | |
Stock-based compensation | 2,053 | 1,217 | |
Balance-end of period | $ 439,466 | 304,567 | |
Cumulative Effect, Period of Adoption, Adjustment | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance-beginning of period | [1] | $ (340) | |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance-beginning of period (in shares) | 39,380,000 | 39,141,000 | |
Balance-beginning of period | $ 394 | $ 391 | |
Issuance of shares through the Company's equity plans (in shares) | 179,000 | 114,000 | |
Issuance of shares through the Company's equity plans | $ 1 | $ 2 | |
Balance-end of period (in shares) | 39,559,000 | 39,255,000 | |
Balance-end of period | $ 395 | $ 393 | |
Paid-In Capital | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance-beginning of period | 194,534 | 188,879 | |
Issuance of shares through the Company's equity plans | 1,769 | 164 | |
Stock-based compensation | 2,053 | 1,217 | |
Balance-end of period | 198,356 | 190,260 | |
Retained Earnings | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance-beginning of period | 858,951 | 784,942 | |
Net income (loss) | 84,766 | (15,287) | |
Balance-end of period | $ 943,718 | 769,315 | |
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance-beginning of period | [1] | $ (340) | |
Treasury Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance-beginning of period (in shares) | 22,901,000 | 22,280,000 | |
Balance-beginning of period | $ (662,843) | $ (645,229) | |
Purchase of shares under the stock repurchase program (in shares) | 541,000 | 428,000 | |
Purchase of shares under the stock repurchase program | $ (37,314) | $ (9,748) | |
Settlement of net share equity awards (in shares) | 41,000 | 31,000 | |
Settlement of net share equity awards | $ (2,846) | $ (424) | |
Balance-end of period (in shares) | 23,484,000 | 22,739,000 | |
Balance-end of period | $ (703,003) | $ (655,401) | |
[1] | Adoption of Accounting Standards Update ("ASU") No. 2016-13, Topic 326, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments . See Note 2, Recent Accounting Pronouncements , in our Annual Report on Form 10-K filed on April 7, 2021. |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 3 Months Ended |
May 01, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Accounting Policies | Basis of Presentation and Accounting Policies The accompanying unaudited condensed consolidated financial statements of Hibbett Sports, Inc. and its wholly-owned subsidiaries (including the condensed consolidated balance sheet as of January 30, 2021, which has been derived from audited financial statements) have been prepared in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP") for interim financial information and are presented in accordance with the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. References to “Hibbett,” “we,” “our,” “us,” and the “Company” refer to Hibbett Sports, Inc. and its subsidiaries as well as its predecessors. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2021 filed on April 7, 2021 ("2021 Annual Report"). The unaudited condensed consolidated financial statements have been prepared on a basis consistent in all material respects with the accounting policies described in the 2021 Annual Report and reflect all adjustments of a normal recurring nature that are, in management’s opinion, necessary for the fair presentation of the results of operations, financial position, and cash flows for the periods presented. Occasionally, certain reclassifications are made to conform previously reported data to the current presentation. Such reclassifications have no impact on total assets, total liabilities, net income, cash flows or stockholders’ investment in any of the periods presented. Property and Equipment Property and equipment are recorded at cost. Finance lease assets are shown as right-of-use ("ROU") assets and are excluded from property and equipment ( see Note 3, Leases ). The fixed asset component of asset group impairment charges was not material in any period presented. Property and equipment consist of the following (in thousands): May 1, January 30, May 2, Land $ 7,277 $ 7,277 $ 7,277 Buildings 21,607 21,505 21,635 Equipment 106,633 104,431 96,606 Furniture and fixtures 42,369 42,448 36,931 Leasehold improvements 112,741 109,220 103,642 Construction in progress 1,901 1,470 603 Total property and equipment 292,528 286,351 266,694 Less: accumulated depreciation and amortization 185,027 179,192 168,923 Total property and equipment, net $ 107,501 $ 107,159 $ 97,771 Revenue Recognition We recognize revenue in accordance with Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers, when control of the merchandise is transferred to our customer which is at delivery. Sales are recorded net of expected returns at the time the customer takes possession of the merchandise. Net sales exclude sales taxes because we are a pass-through conduit for collecting and remitting these taxes. Gift Cards, Customer Orders, and Layaways: The net deferred revenue liability for gift cards, customer orders, and layaways at May 1, 2021, January 30, 2021, and May 2, 2020 was $10.1 million, $8.8 million, and $13.2 million, respectively, recognized in accounts payable on our unaudited condensed consolidated balance sheets. We recognize revenue when a gift card is redeemed by the customer and recognize gift card breakage income in net sales in proportion to the redemption pattern of rights exercised by the customer. For all periods presented, the gift card breakage was immaterial. During the 13-weeks ended May 1, 2021 and May 2, 2020, $0.7 million and $0.5 million, respectively, of gift card deferred revenue from prior periods was realized. Loyalty Program : We offer the Hibbett Rewards program whereby upon registration and in accordance with the terms of the program, customers earn points on certain purchases. Points convert into rewards at defined thresholds. The short-term future performance obligation liability is estimated at each reporting period based on historical conversion and redemption patterns. The liability is included in other accrued expenses on our unaudited condensed consolidated balance sheets and was $4.1 million, $3.4 million, and $2.3 million at May 1, 2021, January 30, 2021, and May 2, 2020, respectively. Return Sales : The liability for return sales is estimated at each reporting period based on historical return patterns and is recognized at the transaction price. The liability is included in accrued expenses on our unaudited condensed consolidated balance sheets. The return asset and corresponding adjustment to cost of goods sold for our right to recover the merchandise returned by the customer is immaterial. Retail Store Sales : For merchandise sold in our stores, revenue is recognized at the point of sale when tender is accepted and the customer takes possession of the merchandise. Revenues disaggregated by major product categories are as follows (in thousands): 13-Weeks Ended May 1, May 2, Footwear $ 322,581 $ 166,242 Apparel 131,108 79,407 Equipment 53,172 24,188 Total $ 506,861 $ 269,837 Goodwill and Indefinite-Lived Intangible Assets Goodwill and the City Gear tradename are indefinite-lived assets which are not amortized, but rather tested for impairment at least annually, or on an interim basis if events and circumstances have occurred that indicate that it is more likely than not that an asset is impaired. Such events or circumstances could include, but are not limited to, significant negative industry or economic trends, unanticipated changes in the competitive environment and a significant sustained decline in the market price of our stock. If an asset is impaired, the amount that the carrying value exceeds the fair value is recorded as an impairment charge to current income. Due to the macroeconomic impact of the COVID-19 pandemic, we determined that indicators of potential impairment were present during the 13-weeks ended May 2, 2020. As a result, we performed interim impairment testing on goodwill and the City Gear tradename as of April 15, 2020, using updated assumptions around prospective financial information, growth rates, discount rates applied to future cash flows, and comparable multiples from publicly traded companies in our industry. In valuing goodwill, we use a combination of the Discounted Cash Flow methodology and the Guideline Public Company methodology, which require assumptions related to future cash flows, discount rate, and comparable public company entities. In the 13-weeks ended May 2, 2020 and year ended January 30, 2021, we determined that goodwill of our City Gear reporting unit was fully impaired and recognized a non-cash impairment charge of $19.7 million. No impairment related to goodwill was recognized during the 13-weeks ended May 1, 2021. In valuing the tradename intangible, we use the Relief from Royalty method which requires assumptions related to future revenues, royalty rate, and discount rate. In the 13-weeks ended May 2, 2020 and year ended January 30, 2021, we determined that the City Gear tradename was partially impaired and recognized a non-cash impairment charge of $8.9 million in store operating, selling, and administrative expenses on our unaudited condensed consolidated statements of operations. As the entire goodwill balance was written off as May 2, 2020, there are no goodwill impairment impacts in the current period. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
May 01, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Standards that were adopted In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, “ Income Taxes ("Topic 740"): Simplifying the Accounting for Income Taxes ,” as part of its overall simplification initiative. ASU 2019-12 was issued in order to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to financial statement users. The amendments remove certain exceptions to the general provisions of Topic 740 and provide simplification in other areas of Topic 740. We adopted ASU 2019-12 on January 31, 2021, with no material impact to our consolidated financial statements. Standards that are not yet adopted We continuously monitor and review all current accounting pronouncements and standards from the FASB of U.S. GAAP for applicability to our operations. As of May 1, 2021, there were no other new pronouncements or interpretations that had or were expected to have a significant impact on our financial reporting. |
Leases
Leases | 3 Months Ended |
May 01, 2021 | |
Leases [Abstract] | |
Leases | Leases ROU lease assets are periodically reviewed for impairment losses. The Company uses the long-lived assets impairment guidance in ASC Subtopic 360-10, Property, Plant, and Equipment - Overall , to determine when to test ROU assets (or asset groups that contain one or more ROU assets for impairment), whether ROU assets are impaired, and if so, the amount of the impairment loss to recognize. An asset group impairment charge of approximately $0.5 million and $4.1 million was recognized in the 13-weeks ended May 1, 2021 and May 2, 2020, respectively. Lease costs are as follows (in thousands): 13-Weeks Ended May 1, 2021 May 2, 2020 Operating lease cost $ 14,882 $ 17,139 Finance lease cost: Amortization of assets 179 235 Interest on lease liabilities 41 48 Variable lease cost 5,865 (1,208) $ 20,967 $ 16,214 Finance ROU assets on the unaudited condensed consolidated balance sheet at May 1, 2021, January 30, 2021, and May 2, 2020 are shown net of accumulated amortization of $1.9 million, $1.7 million, and $1.0 million, respectively. The following table provides supplemental balance sheet information related to leases: May 1, January 30, May 2, Weighted-average remaining lease term (in years): Operating leases 5 5 5 Finance leases 4 4 4 Weighted-average discount rate: Operating leases 3.5 % 3.5 % 3.9 % Finance leases 5.4 % 5.5 % 7.6 % The following table provides supplemental cash flow and other information related to leases (in thousands): 13-Weeks Ended May 1, 2021 May 2, 2020 Operating cash flows from operating leases $ 18,580 $ 19,724 Operating cash flows from finance leases $ 41 $ 48 Financing cash flows from finance leases $ 240 $ 301 ROU assets obtained in exchange for lease obligations, net: Operating leases $ 14,631 $ 9,524 Finance leases $ 44 $ 533 Maturities of lease obligation as of May 1, 2021 (in thousands): Operating Finance Total Remainder of Fiscal 2022 $ 49,322 $ 835 $ 50,157 Fiscal 2023 63,788 1,085 64,873 Fiscal 2024 49,667 971 50,638 Fiscal 2025 37,323 397 37,720 Fiscal 2026 26,295 302 26,597 Thereafter 40,065 42 40,107 Total minimum lease payments 266,460 3,632 270,092 Less amount representing interest 22,259 274 22,533 $ 244,201 $ 3,358 $ 247,559 As of May 1, 2021, we have entered into approximately $5.9 million of operating lease obligations related to future store locations that have not yet commenced. |
Leases | Leases ROU lease assets are periodically reviewed for impairment losses. The Company uses the long-lived assets impairment guidance in ASC Subtopic 360-10, Property, Plant, and Equipment - Overall , to determine when to test ROU assets (or asset groups that contain one or more ROU assets for impairment), whether ROU assets are impaired, and if so, the amount of the impairment loss to recognize. An asset group impairment charge of approximately $0.5 million and $4.1 million was recognized in the 13-weeks ended May 1, 2021 and May 2, 2020, respectively. Lease costs are as follows (in thousands): 13-Weeks Ended May 1, 2021 May 2, 2020 Operating lease cost $ 14,882 $ 17,139 Finance lease cost: Amortization of assets 179 235 Interest on lease liabilities 41 48 Variable lease cost 5,865 (1,208) $ 20,967 $ 16,214 Finance ROU assets on the unaudited condensed consolidated balance sheet at May 1, 2021, January 30, 2021, and May 2, 2020 are shown net of accumulated amortization of $1.9 million, $1.7 million, and $1.0 million, respectively. The following table provides supplemental balance sheet information related to leases: May 1, January 30, May 2, Weighted-average remaining lease term (in years): Operating leases 5 5 5 Finance leases 4 4 4 Weighted-average discount rate: Operating leases 3.5 % 3.5 % 3.9 % Finance leases 5.4 % 5.5 % 7.6 % The following table provides supplemental cash flow and other information related to leases (in thousands): 13-Weeks Ended May 1, 2021 May 2, 2020 Operating cash flows from operating leases $ 18,580 $ 19,724 Operating cash flows from finance leases $ 41 $ 48 Financing cash flows from finance leases $ 240 $ 301 ROU assets obtained in exchange for lease obligations, net: Operating leases $ 14,631 $ 9,524 Finance leases $ 44 $ 533 Maturities of lease obligation as of May 1, 2021 (in thousands): Operating Finance Total Remainder of Fiscal 2022 $ 49,322 $ 835 $ 50,157 Fiscal 2023 63,788 1,085 64,873 Fiscal 2024 49,667 971 50,638 Fiscal 2025 37,323 397 37,720 Fiscal 2026 26,295 302 26,597 Thereafter 40,065 42 40,107 Total minimum lease payments 266,460 3,632 270,092 Less amount representing interest 22,259 274 22,533 $ 244,201 $ 3,358 $ 247,559 As of May 1, 2021, we have entered into approximately $5.9 million of operating lease obligations related to future store locations that have not yet commenced. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
May 01, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC Topic 820, Fair Value Measurement , establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows: Level I – Quoted prices in active markets for identical assets or liabilities. Level II – Observable inputs other than quoted prices included in Level I. Level III – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The table below segregates all financial assets and financial liabilities that are measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value (in thousands): May 1, 2021 January 30, 2021 May 2, 2020 Level I Level II Level III Level I Level II Level III Level I Level II Level III Short-term investments $ 129 $ — $ — $ 219 $ — $ — $ 468 $ — $ — Long-term investments 2,155 — — 2,107 — — 1,844 — — Short-term contingent earnout — — — — — 15,000 — — 10,000 Long-term contingent earnout — — — — — — — — 77 Total investments $ 2,284 $ — $ — $ 2,326 $ — $ 15,000 $ 2,312 $ — $ 10,077 Short-term investments are reported in other current assets on our unaudited condensed consolidated balance sheets. Long-term investments are reported in other assets on our unaudited condensed consolidated balance sheets. Short-term contingent earnout is reported in other accrued expenses on our unaudited condensed consolidated balance sheets. Long-term contingent earnout is reported in other liabilities on our unaudited condensed consolidated balance sheets. The short-term and long-term contingent earnouts represent the fair value of potential additional payments outlined in the Purchase Agreement to the former members and warrant holders of City Gear if certain financial goals were achieved in Fiscal 2020 and Fiscal 2021 ("Earnout"). The total Earnout was valued using a Monte Carlo simulation analysis in a risk-neutral framework with assumptions for volatility, risk-free rate, and dividend yield. The Earnout was re-valued each quarter in Fiscal 2020 and Fiscal 2021 and any change in valuation was recognized in our consolidated statements of operations. No revaluation was required in Fiscal 2022 and therefore no costs were recognized in store operating, selling, and administrative expenses in Fiscal 2022 as both Earnouts had been fully determined and paid out by the end of Fiscal 2021. As a result of the revaluation for the 13-weeks ended May 2, 2020, a decrease of $11.0 million was recognized in store operating, selling, and administrative expenses. The table below are reconciliations of the contingent earnout balance for each period presented (in thousands): 13-Weeks Ended 52-Weeks Ended 13-Weeks Ended May 1, 2021 January 30, 2021 May 2, 2020 Short-term Long-term Short-term Long-term Short-term Long-term Beginning balance $ 15,000 $ — $ 9,958 $ 11,099 $ 9,958 $ 11,099 Change in valuation, net — — 3,943 — 42 (11,022) Payment (15,000) — (10,000) — — — Reclassification from long-term, net — — 11,099 (11,099) — — Ending balance $ — $ — $ 15,000 $ — $ 10,000 $ 77 |
Debt
Debt | 3 Months Ended |
May 01, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt In October 2018, we entered into amended agreements with Bank of America, N.A. and Regions Bank providing for an aggregate amount of credit available to us under each line of credit of $50.0 million for the purpose of financing a portion of the cash purchase price payable in the acquisition of City Gear. The terms of the Bank of America facility allowed for borrowings up to $50.0 million with an interest rate agreed upon between the lender and us at the time the loan was made. The terms of the Regions Bank facility allowed for borrowings up to $50.0 million with an interest rate at one-month LIBOR plus 1.5%. Both facilities were unsecured, due on demand and set to expire in October 2021. Under the provisions of both facilities, we did not pay commitment fees. However, both were subject to negative pledge agreements that, among other things, restricted liens or transfers of assets including inventory, tangible or intangible personal property, and land and land improvements. In March 2020, we borrowed $50.0 million under these credit agreements as a precautionary measure in order to increase our cash position and preserve financial flexibility in light of the uncertainty in the global markets resulting from the COVID-19 pandemic at that time. The proceeds from such borrowings were preserved for working capital, capital expenditures, and general corporate purposes. On April 16, 2020, we entered into the Second Amended and Restated Note with Regions Bank ("Amended Credit Facility") that provides for an aggregate amount of credit available to us of $75.0 million. The Amended Credit Facility superseded the Regions Bank credit agreement dated October 2018, with a maturity date of April 19, 2021, and is secured by all assets of the Company with the exception of real property. Simultaneous with the execution of the Amended Credit Facility, the $50.0 million outstanding under the previous credit agreements was paid in full, the Bank of America credit agreement dated October 2018 was terminated and we incurred borrowings under the Amended Credit Facility of $50.0 million. On June 5, 2020, we entered into a Note Modification Agreement that extended the maturity date of the Amended Credit Facility from April 19, 2021 to July 18, 2021. No other provisions of the Amended Credit Facility were affected. We are currently in negotiations to replace the Amended Credit Facility. Borrowings under the Amended Credit Facility bear interest at the one-month LIBOR rate plus 2.5% from April 16, 2020 through October 16, 2020 and the one-month LIBOR rate plus 3.0% from October 17, 2020 through the maturity date. There were no origination fees and we do not pay any commitment fees. The Amended Credit Facility includes a loan fee of $50,000 payable to Regions Bank at the maturity date or at the termination date if the agreement is terminated prior to the maturity date for any reason including due to an event of default. The loan fee will be waived if the Amended Credit Facility is terminated due to refinancing of the loan with a new loan facility provided by Regions Bank. The Amended Credit Facility has one financial covenant which requires us to maintain inventory with a minimum value of $150.0 million at all times (measured at the lower of cost or net realizable value consistent with U.S. GAAP). As of May 1, 2021, we were in compliance with this covenant. The Amended Credit Facility also restricts us from engaging in certain acquisitions and from incurring indebtedness, other than certain customary permitted indebtedness related to business operations. We did not incur any borrowings against the Amended Credit Facility during the 13-weeks ended May 1, 2021. At May 1, 2021, a total of $75.0 million was available to us from the Amended Credit Facility. There were 97 days during the 52-weeks ended January 30, 2021, where we incurred borrowings against the credit facilities for an average and maximum borrowing of $43.3 million and $50.0 million, respectively, and an average interest rate of 3.45%. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
May 01, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The compensation costs that have been charged against income were as follows (in thousands): 13-Weeks Ended May 1, May 2, Stock-based compensation expense by type: Stock options $ 174 $ 90 Restricted stock units 1,788 1,060 Employee stock purchases 85 44 Director deferred compensation 6 23 Total stock-based compensation expense 2,053 1,217 Income tax benefit recognized 479 391 Stock-based compensation expense, net of income tax $ 1,574 $ 826 Expense for restricted stock units is shown net of forfeitures of approximately $0.1 million and $0.3 million for the 13-weeks ended May 1, 2021 and May 2, 2020, respectively. We have granted the following equity awards: 13-Weeks Ended May 1, May 2, Stock options 4,384 27,000 Restricted stock unit awards 61,241 334,485 Performance-based restricted stock unit awards 22,492 — Deferred stock units 84 2,143 At May 1, 2021, the total compensation costs not yet recognized related to unvested restricted stock unit awards was $10.5 million and the weighted-average period over which such awards are expected to be recognized is 2.7 years. There were no unrecognized compensation costs related to unvested stock options at May 1, 2021. During the 13-weeks ended May 1, 2021 and May 2, 2020, 4,384 and 27,000 stock options were granted, respectively. The weighted-average grant date fair value of stock options granted during the 13-weeks ended May 1, 2021 and May 2, 2020 was $39.73 and $3.33 per share, respectively. Under the 2012 Non-Employee Director Equity Plan ("2012 Plan"), no shares of our common stock were awarded during the 13-weeks ended May 1, 2021 or May 2, 2020. The number of shares purchased, the average price per share, and the weighted-average grant date fair value of shares purchased through our employee stock purchase plan were as follows: 13-Weeks Ended May 1, May 2, Shares purchased 7,445 17,758 Average price per share $ 39.25 $ 9.29 Weighted-average fair value at grant date $ 11.45 $ 4.21 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
May 01, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computation of basic earnings per share ("EPS") is based on the weighted-average number of common shares outstanding during the period. The computation of diluted EPS is based on the weighted-average number of shares outstanding plus the incremental shares that would be outstanding assuming exercise of dilutive stock options and issuance of restricted stock. The number of incremental shares is calculated by applying the treasury stock method. The following table sets forth the weighted-average number of common shares outstanding (in thousands): 13-Weeks Ended May 1, May 2, Weighted-average shares used in basic computations 16,325 16,546 Dilutive equity awards 641 — Weighted-average shares used in diluted computations 16,966 16,546 For the 13-weeks ended May 1, 2021, we did not exclude any options from the computations of diluted weighted-average common shares or common stock equivalents. For the 13-weeks ended May 2, 2020, all stock-based awards were excluded from the computation of diluted weighted-average common shares and common share equivalents outstanding because of their anti-dilutive effect. We also excluded 55,084 unvested stock awards granted to certain employees from the computations of diluted weighted-average common shares and common share equivalents outstanding because they are subject to certain performance-based annual vesting conditions which had not been achieved by May 1, 2021. Assuming the performance-criteria had been achieved as of May 1, 2021, the incremental dilutive impact would have been 50,773 shares. |
Stock Repurchase Activity
Stock Repurchase Activity | 3 Months Ended |
May 01, 2021 | |
Treasury Stock Transactions, Excluding Value of Shares Reissued [Abstract] | |
Stock Repurchase Activity | Stock Repurchase Activity In November 2018, the Board of Directors ("Board") authorized the extension of our Stock Repurchase Program ("Program") in the amount of $300.0 million to repurchase our common stock through January 29, 2022. The Program authorizes repurchases of our common stock in open market or negotiated transactions, with the amount and timing of repurchases dependent on market conditions and at the discretion of our management. In addition to the Program, we also acquire shares of our common stock from holders of restricted stock unit awards to satisfy tax withholding requirements due at vesting. Shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements do not reduce the Program authorization. During the 13-weeks ended May 1, 2021, we repurchased 541,283 shares of our common stock under the Program at an aggregate cost of $37.3 million and acquired 41,120 shares from holders of restricted stock unit awards to satisfy tax withholding requirements of $2.8 million. During the 13-weeks ended May 2, 2020, we repurchased 428,018 shares of our common stock at an aggregate cost of $9.7 million under the Program and acquired 30,895 shares from holders of restricted stock unit awards to satisfy tax withholding requirements of $0.4 million. Subsequent to May 1, 2021, the Program was expanded and extended. See Note 12, Subsequent Events |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
May 01, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings and Contingencies. From time to time, the Company is a party to various legal matters in the ordinary course of its business, including actions by employees, consumers, suppliers, government agencies, or others. The Company has recorded accruals with respect to these matters, where appropriate, which are reflected in the Company's unaudited condensed consolidated financial statements. For some matters, a liability is not probable or the amount cannot be reasonably estimated and therefore an accrual has not been made. The Company believes that its pending legal matters, both individually and in the aggregate, will be resolved without a material adverse effect on the Company's consolidated financial statements as a whole. However, litigation and other legal matters involve an element of uncertainty. Adverse decisions and settlements, including any required changes to the Company's business, or other developments in such matters could affect our operating results in future periods or result in a liability or other amounts material to the Company's annual consolidated financial statements. No material amounts were accrued at May 1, 2021, January 30, 2021, or May 2, 2020 pertaining to legal proceedings or other contingencies. |
Income Taxes
Income Taxes | 3 Months Ended |
May 01, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate is based on expected annual income, statutory tax rates, and tax planning opportunities available in the various jurisdictions in which we operate. For interim financial reporting, we estimate the annual effective tax rate based on expected taxable income or loss for the full year and record a quarterly income tax provision (benefit) in accordance with the anticipated annual effective rate and adjust for discrete items. We update the estimates of the taxable income or loss throughout the year as new information becomes available, including year-to-date financial results. This process often results in a change to our expected effective tax rate for the year. When this occurs, we adjust the income tax provision (benefit) during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the expected annual effective tax rate. We apply the provisions of ASC Subtopic 740-10 in accounting for uncertainty in income taxes. In accordance with ASC Subtopic 740-10, we recognize a tax benefit associated with an uncertain tax position when, in our judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, we initially and subsequently measure the tax benefit as the largest amount that we judge to have a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority. Our liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances, such as the progress of tax audits, case law developments, and new or emerging legislation. Such adjustments are recognized entirely in the period in which they are identified. Our effective tax rate includes the net impact of changes in the liability for unrecognized tax benefits and subsequent adjustments as considered appropriate by management. At May 1, 2021, we had a liability of $0.7 million associated with unrecognized tax benefits. We file income tax returns in U.S. federal and various state jurisdictions. Generally, we are not subject to changes in income taxes by the U.S. federal taxing jurisdiction for years prior to Fiscal 2018 or by most state taxing jurisdictions for years prior to Fiscal 2017. |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
May 01, 2021 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions The Company leases one store under a lease arrangement with AL Florence Realty Holdings 2010, LLC, a wholly owned subsidiary of Books-A-Million, Inc. ("BAMM"). One of our Directors, Terrance G. Finley is an executive officer of BAMM. Minimum annual lease payments are $0.1 million, if not in co-tenancy, and the lease termination date is February 2022. Minimum lease payments remaining under this lease at May 1, 2021 and May 2, 2020 were $0.1 million and $0.2 million, respectively. The Company honored certain contracts in place for its wholly owned subsidiary, City Gear, LLC, upon acquisition. The following listing represents those contracts of which Michael E. Longo, the Company's President and CEO, has or had an interest in, either directly or indirectly: Memphis Logistics Group ("MLG") MLG provides logistics and warehousing services to City Gear. Mr. Longo owned a majority interest in MLG and the initial contract term was effective through June 2020 but was extended to June 2021. Effective January 29, 2021, Mr. Longo fully divested his ownership interest in MLG and he no longer has any involvement with its management. In the 13-weeks ended May 2, 2020, payments to MLG under the contract were $1.7 million. The amount outstanding to MLG at January 30, 2021 and May 2, 2020 was $0.3 million and $0.2 million, respectively, and is included in accounts payable on our unaudited condensed consolidated balance sheets. T.I.G. Construction ("TIG") TIG historically performed the majority of new store and store remodel construction for City Gear and is owned by a close relative of Mr. Longo. For the 13-weeks ended May 1, 2021 and May 2, 2020, payments to TIG for its services were $1.4 million and $0.7 million, respectively. The amount outstanding to TIG at May 1, 2021, January 30, 2021, and May 2, 2020 was approximately $0.2 million, $26,000, and $0.2 million, respectively, and is included in accounts payable on our unaudited condensed consolidated balance sheets. Merchant's Capital ("MC") Merchant's Capital owned the office building where City Gear had its corporate offices in Memphis, Tennessee. Mr. Longo is a 33.3% partner in MC. The initial lease term ended on December 31, 2019 but was extended to April 30, 2020 to allow for the transition of City Gear's corporate office to the Company's Birmingham, Alabama headquarters. In the 13-weeks ended May 1, 2021, there were no lease payments to MC. In the 13-weeks ended May 2, 2020, lease payments to MC were $51,200. There were no amounts outstanding to MC at May 1, 2021, January 30, 2021, or May 2, 2020. In addition to the related party interests listed above, Mr. Longo also has a membership interest in the earnout discussed in Note 4 - Fair Value of Financial Instruments . Pursuant to the Membership Interest and Warrant Purchase Agreement dated October 29, 2018, and based on Fiscal 2020 financial results, the former members and warrant holders of City Gear were entitled to and were paid the first earnout payment of $10.0 million in June 2020. Based on Fiscal 2021 financial results, the remaining earnout payment of $15.0 million was achieved and paid to the former members and warrant holders of City Gear in April 2021. Mr. Longo's share of the earnout payments was approximately 22.8% or approximately $2.3 million of the initial earnout payment and approximately 22.8% or approximately $3.4 million of the second earnout payment. |
Subsequent Events
Subsequent Events | 3 Months Ended |
May 01, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On May 26, 2021, the Board authorized the expansion of the Program by $500.0 million to a total of $800.0 million and authorized the Program's extension through February 1, 2025. Subsequent to May 1, 2021, we repurchased 75,000 shares of our common stock at a cost of $6.5 million. As of June 4, 2021, we had approximately $592.5 million remaining under the Program for stock repurchases. |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies (Policies) | 3 Months Ended |
May 01, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Finance lease assets are shown as right-of-use ("ROU") assets and are excluded from property and equipment ( see Note 3, Leases ). The fixed asset component of asset group impairment charges was not material in any period presented. |
Revenue Recognition | Revenue Recognition We recognize revenue in accordance with Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers, when control of the merchandise is transferred to our customer which is at delivery. Sales are recorded net of expected returns at the time the customer takes possession of the merchandise. Net sales exclude sales taxes because we are a pass-through conduit for collecting and remitting these taxes. Gift Cards, Customer Orders, and Layaways: The net deferred revenue liability for gift cards, customer orders, and layaways at May 1, 2021, January 30, 2021, and May 2, 2020 was $10.1 million, $8.8 million, and $13.2 million, respectively, recognized in accounts payable on our unaudited condensed consolidated balance sheets. We recognize revenue when a gift card is redeemed by the customer and recognize gift card breakage income in net sales in proportion to the redemption pattern of rights exercised by the customer. For all periods presented, the gift card breakage was immaterial. During the 13-weeks ended May 1, 2021 and May 2, 2020, $0.7 million and $0.5 million, respectively, of gift card deferred revenue from prior periods was realized. Loyalty Program : We offer the Hibbett Rewards program whereby upon registration and in accordance with the terms of the program, customers earn points on certain purchases. Points convert into rewards at defined thresholds. The short-term future performance obligation liability is estimated at each reporting period based on historical conversion and redemption patterns. The liability is included in other accrued expenses on our unaudited condensed consolidated balance sheets and was $4.1 million, $3.4 million, and $2.3 million at May 1, 2021, January 30, 2021, and May 2, 2020, respectively. Return Sales : The liability for return sales is estimated at each reporting period based on historical return patterns and is recognized at the transaction price. The liability is included in accrued expenses on our unaudited condensed consolidated balance sheets. The return asset and corresponding adjustment to cost of goods sold for our right to recover the merchandise returned by the customer is immaterial. Retail Store Sales : For merchandise sold in our stores, revenue is recognized at the point of sale when tender is accepted and the customer takes possession of the merchandise. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets Goodwill and the City Gear tradename are indefinite-lived assets which are not amortized, but rather tested for impairment at least annually, or on an interim basis if events and circumstances have occurred that indicate that it is more likely than not that an asset is impaired. Such events or circumstances could include, but are not limited to, significant negative industry or economic trends, unanticipated changes in the competitive environment and a significant sustained decline in the market price of our stock. If an asset is impaired, the amount that the carrying value exceeds the fair value is recorded as an impairment charge to current income. Due to the macroeconomic impact of the COVID-19 pandemic, we determined that indicators of potential impairment were present during the 13-weeks ended May 2, 2020. As a result, we performed interim impairment testing on goodwill and the City Gear tradename as of April 15, 2020, using updated assumptions around prospective financial information, growth rates, discount rates applied to future cash flows, and comparable multiples from publicly traded companies in our industry. |
Recent Accounting Pronouncements | Standards that were adopted In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, “ Income Taxes ("Topic 740"): Simplifying the Accounting for Income Taxes ,” as part of its overall simplification initiative. ASU 2019-12 was issued in order to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to financial statement users. The amendments remove certain exceptions to the general provisions of Topic 740 and provide simplification in other areas of Topic 740. We adopted ASU 2019-12 on January 31, 2021, with no material impact to our consolidated financial statements. Standards that are not yet adopted We continuously monitor and review all current accounting pronouncements and standards from the FASB of U.S. GAAP for applicability to our operations. As of May 1, 2021, there were no other new pronouncements or interpretations that had or were expected to have a significant impact on our financial reporting. |
Basis of Presentation and Acc_3
Basis of Presentation and Accounting Policies (Tables) | 3 Months Ended |
May 01, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following (in thousands): May 1, January 30, May 2, Land $ 7,277 $ 7,277 $ 7,277 Buildings 21,607 21,505 21,635 Equipment 106,633 104,431 96,606 Furniture and fixtures 42,369 42,448 36,931 Leasehold improvements 112,741 109,220 103,642 Construction in progress 1,901 1,470 603 Total property and equipment 292,528 286,351 266,694 Less: accumulated depreciation and amortization 185,027 179,192 168,923 Total property and equipment, net $ 107,501 $ 107,159 $ 97,771 |
Schedule of Revenue Recognition | Revenues disaggregated by major product categories are as follows (in thousands): 13-Weeks Ended May 1, May 2, Footwear $ 322,581 $ 166,242 Apparel 131,108 79,407 Equipment 53,172 24,188 Total $ 506,861 $ 269,837 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
May 01, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost | Lease costs are as follows (in thousands): 13-Weeks Ended May 1, 2021 May 2, 2020 Operating lease cost $ 14,882 $ 17,139 Finance lease cost: Amortization of assets 179 235 Interest on lease liabilities 41 48 Variable lease cost 5,865 (1,208) $ 20,967 $ 16,214 |
Schedule of Supplemental Information Related to Leases | The following table provides supplemental balance sheet information related to leases: May 1, January 30, May 2, Weighted-average remaining lease term (in years): Operating leases 5 5 5 Finance leases 4 4 4 Weighted-average discount rate: Operating leases 3.5 % 3.5 % 3.9 % Finance leases 5.4 % 5.5 % 7.6 % The following table provides supplemental cash flow and other information related to leases (in thousands): 13-Weeks Ended May 1, 2021 May 2, 2020 Operating cash flows from operating leases $ 18,580 $ 19,724 Operating cash flows from finance leases $ 41 $ 48 Financing cash flows from finance leases $ 240 $ 301 ROU assets obtained in exchange for lease obligations, net: Operating leases $ 14,631 $ 9,524 Finance leases $ 44 $ 533 |
Schedule of Maturities of Lease Liabilities | Maturities of lease obligation as of May 1, 2021 (in thousands): Operating Finance Total Remainder of Fiscal 2022 $ 49,322 $ 835 $ 50,157 Fiscal 2023 63,788 1,085 64,873 Fiscal 2024 49,667 971 50,638 Fiscal 2025 37,323 397 37,720 Fiscal 2026 26,295 302 26,597 Thereafter 40,065 42 40,107 Total minimum lease payments 266,460 3,632 270,092 Less amount representing interest 22,259 274 22,533 $ 244,201 $ 3,358 $ 247,559 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
May 01, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities by Fair Value Hierarchy | The table below segregates all financial assets and financial liabilities that are measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value (in thousands): May 1, 2021 January 30, 2021 May 2, 2020 Level I Level II Level III Level I Level II Level III Level I Level II Level III Short-term investments $ 129 $ — $ — $ 219 $ — $ — $ 468 $ — $ — Long-term investments 2,155 — — 2,107 — — 1,844 — — Short-term contingent earnout — — — — — 15,000 — — 10,000 Long-term contingent earnout — — — — — — — — 77 Total investments $ 2,284 $ — $ — $ 2,326 $ — $ 15,000 $ 2,312 $ — $ 10,077 |
Reconciliation of Contingent Earnout Balance | The table below are reconciliations of the contingent earnout balance for each period presented (in thousands): 13-Weeks Ended 52-Weeks Ended 13-Weeks Ended May 1, 2021 January 30, 2021 May 2, 2020 Short-term Long-term Short-term Long-term Short-term Long-term Beginning balance $ 15,000 $ — $ 9,958 $ 11,099 $ 9,958 $ 11,099 Change in valuation, net — — 3,943 — 42 (11,022) Payment (15,000) — (10,000) — — — Reclassification from long-term, net — — 11,099 (11,099) — — Ending balance $ — $ — $ 15,000 $ — $ 10,000 $ 77 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
May 01, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Compensation Costs | The compensation costs that have been charged against income were as follows (in thousands): 13-Weeks Ended May 1, May 2, Stock-based compensation expense by type: Stock options $ 174 $ 90 Restricted stock units 1,788 1,060 Employee stock purchases 85 44 Director deferred compensation 6 23 Total stock-based compensation expense 2,053 1,217 Income tax benefit recognized 479 391 Stock-based compensation expense, net of income tax $ 1,574 $ 826 |
Schedule of Equity Awards Granted | We have granted the following equity awards: 13-Weeks Ended May 1, May 2, Stock options 4,384 27,000 Restricted stock unit awards 61,241 334,485 Performance-based restricted stock unit awards 22,492 — Deferred stock units 84 2,143 |
Schedule of Shares Purchased | The number of shares purchased, the average price per share, and the weighted-average grant date fair value of shares purchased through our employee stock purchase plan were as follows: 13-Weeks Ended May 1, May 2, Shares purchased 7,445 17,758 Average price per share $ 39.25 $ 9.29 Weighted-average fair value at grant date $ 11.45 $ 4.21 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
May 01, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table sets forth the weighted-average number of common shares outstanding (in thousands): 13-Weeks Ended May 1, May 2, Weighted-average shares used in basic computations 16,325 16,546 Dilutive equity awards 641 — Weighted-average shares used in diluted computations 16,966 16,546 |
Basis of Presentation and Acc_4
Basis of Presentation and Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | May 01, 2021 | Jan. 30, 2021 | May 02, 2020 |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 292,528 | $ 286,351 | $ 266,694 |
Less: accumulated depreciation and amortization | 185,027 | 179,192 | 168,923 |
Total property and equipment, net | 107,501 | 107,159 | 97,771 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 7,277 | 7,277 | 7,277 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 21,607 | 21,505 | 21,635 |
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 106,633 | 104,431 | 96,606 |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 42,369 | 42,448 | 36,931 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 112,741 | 109,220 | 103,642 |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 1,901 | $ 1,470 | $ 603 |
Basis of Presentation and Acc_5
Basis of Presentation and Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
May 01, 2021 | May 02, 2020 | Jan. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Liability included in other accrued expenses | $ 4,100,000 | $ 2,300,000 | $ 3,400,000 |
Goodwill impairment | 0 | 19,661,000 | 19,700,000 |
Impairment of intangible assets | 0 | 8,900,000 | 8,900,000 |
Gift cards, customer orders and layaways | |||
Disaggregation of Revenue [Line Items] | |||
Net deferred revenue liability | 10,100,000 | 13,200,000 | $ 8,800,000 |
Deferred revenue from prior periods realized | $ 700,000 | $ 500,000 |
Basis of Presentation and Acc_6
Basis of Presentation and Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 506,861 | $ 269,837 |
Footwear | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 322,581 | 166,242 |
Apparel | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 131,108 | 79,407 |
Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 53,172 | $ 24,188 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 01, 2021 | May 02, 2020 | Jan. 30, 2021 | |
Leases [Abstract] | |||
Impairment loss | $ 0.5 | $ 4.1 | |
Accumulated amortization | 1.9 | $ 1 | $ 1.7 |
Lease not yet commenced, amount | $ 5.9 |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 14,882 | $ 17,139 |
Finance lease cost: | ||
Amortization of assets | 179 | 235 |
Interest on lease liabilities | 41 | 48 |
Variable lease cost | 5,865 | (1,208) |
Lease cost | $ 20,967 | $ 16,214 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Balance Sheet Information (Details) | May 01, 2021 | Jan. 30, 2021 | May 02, 2020 |
Weighted-average remaining lease term (in years): | |||
Operating leases | 5 years | 5 years | 5 years |
Finance leases | 4 years | 4 years | 4 years |
Weighted-average discount rate: | |||
Operating leases | 3.50% | 3.50% | 3.90% |
Finance leases | 5.40% | 5.50% | 7.60% |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 18,580 | $ 19,724 |
Operating cash flows from finance leases | 41 | 48 |
Financing cash flows from finance leases | 240 | 301 |
ROU assets obtained in exchange for lease obligations, net: | ||
Operating leases | 14,631 | 9,524 |
Finance leases | $ 44 | $ 533 |
Leases - Summary of Maturities
Leases - Summary of Maturities of Operating Lease Liabilities (Details) $ in Thousands | May 01, 2021USD ($) |
Operating | |
Remainder of fiscal year | $ 49,322 |
Year one | 63,788 |
Year two | 49,667 |
Year three | 37,323 |
Year four | 26,295 |
Thereafter | 40,065 |
Total minimum lease payments | 266,460 |
Less amount representing interest | 22,259 |
Operating lease obligations | 244,201 |
Finance | |
Remainder of fiscal year | 835 |
Year one | 1,085 |
Year three | 971 |
Year four | 397 |
Year five | 302 |
Thereafter | 42 |
Total minimum lease payments | 3,632 |
Less amount representing interest | 274 |
Finance lease obligations | 3,358 |
Total | |
Remainder of fiscal year | 50,157 |
Year one | 64,873 |
Year two | 50,638 |
Year three | 37,720 |
Year four | 26,597 |
Thereafter | 40,107 |
Total minimum lease payments | 270,092 |
Less amount representing interest | 22,533 |
Total lease obligations | $ 247,559 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Fair Value Hierarchy (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 02, 2020 | May 01, 2021 | Jan. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent earnout valuation, increase (decrease) | $ (11,000) | ||
Fair Value, Measurements, Recurring | Level I | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 468 | $ 129 | $ 219 |
Long-term investments | 1,844 | 2,155 | 2,107 |
Short-term contingent earnout | 0 | 0 | 0 |
Long-term contingent earnout | 0 | 0 | 0 |
Total investments | 2,312 | 2,284 | 2,326 |
Fair Value, Measurements, Recurring | Level II | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 0 | 0 |
Long-term investments | 0 | 0 | 0 |
Short-term contingent earnout | 0 | 0 | 0 |
Long-term contingent earnout | 0 | 0 | 0 |
Total investments | 0 | 0 | 0 |
Fair Value, Measurements, Recurring | Level III | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 0 | 0 |
Long-term investments | 0 | 0 | 0 |
Short-term contingent earnout | 10,000 | 0 | 15,000 |
Long-term contingent earnout | 77 | 0 | 0 |
Total investments | $ (10,077) | $ 0 | $ (15,000) |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Contingent Earnout Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
May 01, 2021 | May 02, 2020 | Aug. 01, 2020 | |
Short-term | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 15,000 | $ 9,958 | $ 9,958 |
Change in valuation, net | 0 | 42 | 3,943 |
Payment | (15,000) | 0 | (10,000) |
Reclassification from long-term, net | 0 | 0 | 11,099 |
Ending balance | 0 | 10,000 | |
Long-term | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 0 | 11,099 | 11,099 |
Change in valuation, net | 0 | (11,022) | 0 |
Payment | 0 | 0 | 0 |
Reclassification from long-term, net | 0 | 0 | $ (11,099) |
Ending balance | $ 0 | $ 77 |
Debt (Details)
Debt (Details) | Apr. 16, 2020USD ($) | Mar. 31, 2020USD ($) | Oct. 31, 2018USD ($) | May 01, 2021USD ($) | May 02, 2020USD ($)day | Jan. 30, 2021USD ($)day |
Line of Credit Facility [Line Items] | ||||||
Proceeds under credit facilities | $ 0 | $ 117,535,000 | ||||
Average outstanding amount | 0 | 38,700,000 | $ 43,300,000 | |||
Maximum amount outstanding during period | 0 | $ 50,000,000 | $ 50,000,000 | |||
Number of days where borrowings incurred against facilities | day | 58 | 97 | ||||
Interest rate during period | 3.22% | 3.45% | ||||
Bank of America LOC | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 50,000,000 | |||||
Regions LOC | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 50,000,000 | |||||
Regions LOC | London Interbank Offered Rate (LIBOR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
Bank of America and Regions LOCs | ||||||
Line of Credit Facility [Line Items] | ||||||
Proceeds under credit facilities | $ 50,000,000 | |||||
Amended Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 75,000,000 | $ 75,000,000 | ||||
Proceeds under credit facilities | 50,000,000 | |||||
Debt issuance costs | 50,000 | |||||
Minimum inventory requirement | $ 150,000,000 | |||||
Amended Credit Facility | London Interbank Offered Rate (LIBOR) | April 16, 2020 through October 16, 2020 | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 2.50% | |||||
Amended Credit Facility | London Interbank Offered Rate (LIBOR) | October 17, 2020 through Maturity | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 3.00% |
Stock-based Compensation - Comp
Stock-based Compensation - Components of Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Stock options | $ 174 | $ 90 |
Restricted stock units | 1,788 | 1,060 |
Employee stock purchases | 85 | 44 |
Director deferred compensation | 6 | 23 |
Total stock-based compensation expense | 2,053 | 1,217 |
Income tax benefit recognized | 479 | 391 |
Stock-based compensation expense, net of income tax | $ 1,574 | $ 826 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
2012 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares granted (in shares) | 0 | 0 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Forfeitures | $ 100,000 | $ 300,000 |
Compensation costs not yet recognized | $ 10,500,000 | |
Weighted-average period for recognition | 2 years 8 months 12 days | |
Number of shares granted (in shares) | 61,241 | 334,485 |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation costs not yet recognized | $ 0 | |
Options granted (in shares) | 4,384 | 27,000 |
Weighted-average grant date fair value of stock options (in dollars per share) | $ 39.73 | $ 3.33 |
Stock-Based Compensation - Equi
Stock-Based Compensation - Equity Awards Granted (Details) - shares | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted (in shares) | 4,384 | 27,000 |
Restricted stock unit awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards granted (in shares) | 61,241 | 334,485 |
Performance-based restricted stock unit awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards granted (in shares) | 22,492 | 0 |
Deferred stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards granted (in shares) | 84 | 2,143 |
Stock-Based Compensation - Shar
Stock-Based Compensation - Shares Purchased (Details) - $ / shares | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Shares purchased (in shares) | 7,445 | 17,758 |
Average price per share (in dollars per share) | $ 39.25 | $ 9.29 |
Weighed average fair value at grant date (in dollars per share) | $ 11.45 | $ 4.21 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Weighted-average share used in basic computations (in shares) | 16,325,000 | 16,546,000 |
Dilutive equity awards (in shares) | 641,000 | 0 |
Weighted-average shares used in diluted computations (in shares) | 16,966,000 | 16,546,000 |
Employee Stock Option | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 0 | |
Share-based Payment Arrangement | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 55,084 | |
Incremental common shares attributable to share-based payment arrangements (in shares) | 50,773 |
Stock Repurchase Activity (Deta
Stock Repurchase Activity (Details) - USD ($) | 3 Months Ended | ||
May 01, 2021 | May 02, 2020 | Nov. 30, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||
Cost of repurchased common stock | $ 37,314,000 | $ 9,748,000 | |
Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Authorized repurchased amount | $ 300,000,000 | ||
Cost of repurchased common stock | $ 37,300,000 | $ 9,700,000 | |
Repurchased common stock (in shares) | 541,283 | 428,018 | |
Restricted stock unit awards acquired (in shares) | 41,120 | 30,895 | |
Tax withholding requirements | $ 2,800,000 | $ 400,000 | |
Remaining authorized repurchase amount | $ 99,000,000 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | May 01, 2021USD ($) |
Income Tax Disclosure [Abstract] | |
Liability associated with unrecognized tax benefits | $ 0.7 |
Related-Party Transactions (Det
Related-Party Transactions (Details) | 1 Months Ended | 3 Months Ended | |||
Jun. 30, 2020USD ($) | May 01, 2021USD ($)store | May 02, 2020USD ($) | Apr. 30, 2021USD ($) | Jan. 30, 2021USD ($) | |
Related Party Transaction [Line Items] | |||||
Operating cash flows from operating leases | $ 18,580,000 | $ 19,724,000 | |||
Operating lease liability payments due | $ 266,460,000 | ||||
City Gear | |||||
Related Party Transaction [Line Items] | |||||
Payment for contingent consideration liability | $ 10,000,000 | ||||
Contingent arrangements, limit | $ 15,000,000 | ||||
Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Number of store leases under lease arrangement | store | 1 | ||||
Operating cash flows from operating leases | $ 100,000 | ||||
Operating lease liability payments due | $ 100,000 | 200,000 | |||
Affiliated Entity | Mr. Longo | Merchant's Capital | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage by noncontrolling owners | 33.30% | ||||
Affiliated Entity | Memphis Logistics Group | |||||
Related Party Transaction [Line Items] | |||||
Expenses with related party | 1,700,000 | ||||
Due to related parties | 200,000 | $ 300,000 | |||
Affiliated Entity | T.I.G. Construction | |||||
Related Party Transaction [Line Items] | |||||
Expenses with related party | $ 1,400,000 | 700,000 | |||
Due to related parties | 200,000 | 200,000 | 26,000 | ||
Affiliated Entity | Merchant's Capital | |||||
Related Party Transaction [Line Items] | |||||
Operating cash flows from operating leases | 0 | 51,200 | |||
Due to related parties | $ 0 | $ 0 | $ 0 | ||
Chief Executive Officer | City Gear | |||||
Related Party Transaction [Line Items] | |||||
Earnout percent to related party | 22.80% | ||||
Contingent arrangements, limit | $ 2,300,000 | $ 3,400,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) | May 26, 2021 | Jun. 04, 2021 |
Subsequent Event [Line Items] | ||
Authorized amount, increase (decrease) | $ 500,000,000 | |
Authorized repurchased amount | $ 800,000,000 | |
Stock repurchased in period (in shares) | 75,000 | |
Payments for repurchase of common stock | $ 6,500,000 | |
Remaining authorized repurchase amount | $ 592,500,000 |