Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 29, 2022 | Mar. 22, 2022 | Jul. 31, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 29, 2022 | ||
Current Fiscal Year End Date | --01-29 | ||
Document Transition Report | false | ||
Entity File Number | 000-20969 | ||
Entity Registrant Name | HIBBETT, 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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.3 | ||
Entity Common Stock, Shares Outstanding | 13,139,364 | ||
Documents Incorporated by Reference | Portions of the Registrant’s Proxy Statement for the 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001017480 |
Audit Information
Audit Information | 12 Months Ended |
Jan. 29, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Location | Birmingham, Alabama |
Auditor Name | Ernst & Young LLP |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 17,054 | $ 209,290 |
Receivables, net | 13,607 | 11,905 |
Inventories, net | 221,219 | 202,038 |
Other current assets | 25,134 | 16,567 |
Total current assets | 277,014 | 439,800 |
Property and equipment, net | 145,967 | 107,159 |
Operating right-of-use assets | 243,751 | 216,224 |
Finance right-of-use assets, net | 2,186 | 3,285 |
Tradename intangible asset | 23,500 | 23,500 |
Deferred income taxes, net | 7,187 | 14,625 |
Other assets, net | 3,612 | 3,573 |
Total Assets | 703,217 | 808,166 |
Current Liabilities: | ||
Accounts payable | 85,647 | 107,215 |
Operating lease obligations | 68,521 | 58,613 |
Finance lease obligations | 975 | 956 |
Accrued payroll expenses | 26,320 | 29,948 |
Other accrued expenses | 13,401 | 28,588 |
Total current liabilities | 194,864 | 225,320 |
Operating lease obligations | 212,349 | 186,133 |
Finance lease obligations | 1,427 | 2,599 |
Unrecognized tax benefits | 546 | 725 |
Other liabilities | 2,516 | 2,353 |
Total liabilities | 411,702 | 417,130 |
Stockholders’ Investment: | ||
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued | 0 | 0 |
Common stock, $0.01 par value, 80,000,000 shares authorized, 39,611,163 and 39,379,865 shares issued at January 29, 2022 and January 30, 2021, respectively | 396 | 394 |
Paid-in capital | 202,729 | 194,534 |
Retained earnings | 1,022,317 | 858,951 |
Treasury stock, at cost, 26,317,947 and 22,901,101 shares repurchased at January 29, 2022 and January 30, 2021, respectively | (933,927) | (662,843) |
Total stockholders’ investment | 291,515 | 391,036 |
Total Liabilities and Stockholders’ Investment | $ 703,217 | $ 808,166 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 29, 2022 | Jan. 30, 2021 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, issued (in shares) | 39,611,163 | 39,379,865 |
Treasury stock (in shares) | 26,317,947 | 22,901,101 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 1,691,184,000 | $ 1,419,657,000 | $ 1,184,234,000 |
Cost of goods sold | 1,044,777,000 | 915,169,000 | 800,783,000 |
Gross margin | 646,407,000 | 504,488,000 | 383,451,000 |
Store operating, selling and administrative expenses | 382,414,000 | 356,856,000 | 318,011,000 |
Goodwill impairment | 0 | 19,661,000 | 0 |
Depreciation and amortization | 35,827,000 | 29,583,000 | 29,323,000 |
Operating income | 228,166,000 | 98,388,000 | 36,117,000 |
Interest income | 43,000 | 127,000 | 1,225,000 |
Interest expense | (317,000) | (563,000) | (1,014,000) |
Interest income (expense), net | (274,000) | (436,000) | 211,000 |
Income before provision for income taxes | 227,892,000 | 97,952,000 | 36,328,000 |
Provision for income taxes | 53,579,000 | 23,686,000 | 8,984,000 |
Net income | $ 174,313,000 | $ 74,266,000 | $ 27,344,000 |
Basic earnings per share (in dollars per share) | $ 11.63 | $ 4.49 | $ 1.54 |
Diluted earnings per share (in dollars per share) | $ 11.19 | $ 4.36 | $ 1.52 |
Weighted average shares outstanding: | |||
Basic (in shares) | 14,993 | 16,547 | 17,746 |
Diluted (in shares) | 15,582 | 17,037 | 17,957 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Cash Flows From Operating Activities: | |||
Net income | $ 174,313 | $ 74,266 | $ 27,344 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 35,827 | 29,583 | 29,323 |
Contingent earnout, net | (13,761) | (1,296) | 15,057 |
Impairment charges | 2,915 | 37,109 | 1,011 |
Amortization of inventory step-up | 0 | 0 | 956 |
Deferred income taxes and unrecognized income tax benefit, net | 7,259 | (5,774) | (5,143) |
(Gain) loss on disposal of assets, net | (1,501) | (3,076) | 518 |
Stock-based compensation | 5,540 | 3,799 | 2,653 |
Other non-cash adjustments | 0 | (135) | (2,578) |
Changes in operating assets and liabilities: | |||
Receivables, net | (1,694) | (3,768) | 1,938 |
Inventories, net | (19,181) | 85,973 | (8,680) |
Prepaid expenses and other | (2,078) | (2,763) | (662) |
Other assets | 1,092 | 1,493 | (570) |
Accounts payable | (25,580) | (26,261) | 24,347 |
Accrued expenses and other | (3,663) | 8,566 | 6,775 |
Net cash provided by operating activities | 159,488 | 197,716 | 92,289 |
Cash Flows From Investing Activities: | |||
Capital expenditures | (71,153) | (34,760) | (17,326) |
Proceeds from sale of property and equipment | 1,147 | 841 | 530 |
Other | (155) | 949 | (210) |
Net cash used in investing activities | (70,161) | (32,970) | (17,006) |
Cash Flows From Financing Activities: | |||
Proceeds under credit facilities | 38,259 | 117,535 | 81,780 |
Repayments under credit facilities | (38,259) | (117,535) | (116,780) |
Stock repurchases | (267,826) | (16,717) | (34,904) |
Payment of cash dividends | (10,939) | 0 | 0 |
Payment of contingent earnout | (1,239) | (4,761) | 0 |
Payments of finance lease obligations | (960) | (1,017) | (977) |
Settlement of net share equity awards | (3,257) | (897) | (555) |
Proceeds from options exercised and purchase of shares under the employee stock purchase plan | 2,658 | 1,858 | 475 |
Net cash used in financing activities | (281,563) | (21,534) | (70,961) |
Net (decrease) increase in cash and cash equivalents | (192,236) | 143,212 | 4,322 |
Cash and cash equivalents, beginning of year | 209,290 | 66,078 | 61,756 |
Cash and cash equivalents, end of year | 17,054 | 209,290 | 66,078 |
Supplemental Disclosures of Cash Flow Information: | |||
Interest | 243 | 560 | 993 |
Income taxes, net of refunds | 52,899 | 33,654 | 15,438 |
Operating cash flows from operating leases | 76,400 | 77,439 | 74,992 |
Operating cash flows from finance leases | 136 | 179 | 223 |
Financing cash flows from finance leases | 960 | 1,017 | 977 |
Supplemental Schedule of Non-Cash Activities: | |||
Non-cash accruals for capital expenditures | 4,012 | 1,814 | 0 |
Operating leases obtained in exchange for lease liabilities, net | 91,325 | 57,357 | 46,890 |
Finance leases obtained in exchange for lease liabilities, net | $ (407) | $ 1,985 | $ 574 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Investment - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | 75 Months Ended | ||||||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Jan. 29, 2022 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance-beginning of period | $ 391,036 | $ 328,983 | $ 336,049 | |||||
Net income | 174,313 | 74,266 | 27,344 | |||||
Issuance of shares through the Company’s equity plans | 2,658 | 1,858 | 475 | |||||
Declaration of dividends ($0.25 per common share) | 0 | |||||||
Purchase of shares under the stock repurchase program | (267,826) | (16,717) | (34,904) | $ (933,900) | ||||
Settlement of net share equity awards | (3,257) | (897) | (555) | |||||
Stock-based compensation | 5,540 | 3,799 | 2,653 | |||||
Balance-end of period | $ 291,515 | 391,036 | $ 328,983 | $ 336,049 | $ 291,515 | |||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | Accounting Standards Update 2016-02 [Member] | ||||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance-beginning of period | $ (256) | [1] | $ (2,079) | [2] | ||||
Balance-end of period | $ (256) | [1] | $ (2,079) | [2] | ||||
Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance-beginning of period (in shares) | 39,380 | 39,141 | 38,983 | |||||
Balance-beginning of period | $ 394 | $ 391 | $ 390 | |||||
Issuance of shares through the Company’s equity plans (in shares) | 231 | 239 | 158 | |||||
Issuance of shares through the Company’s equity plans | $ 2 | $ 3 | $ 1 | |||||
Balance-end of period (in shares) | 39,611 | 39,380 | 39,141 | 38,983 | 39,611 | |||
Balance-end of period | $ 396 | $ 394 | $ 391 | $ 390 | $ 396 | |||
Paid-In Capital | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance-beginning of period | 194,534 | 188,879 | 185,752 | |||||
Issuance of shares through the Company’s equity plans | 2,656 | 1,855 | 474 | |||||
Stock-based compensation | 5,540 | 3,799 | 2,653 | |||||
Balance-end of period | 202,729 | 194,534 | 188,879 | 185,752 | 202,729 | |||
Retained Earnings | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance-beginning of period | 858,951 | 784,942 | 759,677 | |||||
Net income | 174,313 | 74,266 | 27,344 | |||||
Declaration of dividends ($0.25 per common share) | (10,949) | |||||||
Balance-end of period | $ 1,022,317 | 858,951 | 784,942 | 759,677 | $ 1,022,317 | |||
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance-beginning of period | $ (256) | [1] | (2,079) | [2] | ||||
Balance-end of period | $ (256) | [1] | $ (2,079) | [2] | ||||
Treasury Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance-beginning of period (in shares) | 22,901 | 22,280 | 20,686 | |||||
Balance-beginning of period | $ (662,843) | $ (645,229) | $ (609,770) | |||||
Purchase of shares under the stock repurchase program (in shares) | 3,371 | 578 | 1,565 | |||||
Purchase of shares under the stock repurchase program | $ (267,826) | $ (16,717) | $ (34,904) | |||||
Settlement of net share equity awards (in shares) | 46 | 43 | 29 | |||||
Settlement of net share equity awards | $ (3,257) | $ (897) | $ (555) | |||||
Balance-end of period (in shares) | 26,318 | 22,901 | 22,280 | 20,686 | 26,318 | |||
Balance-end of period | $ (933,927) | $ (662,843) | $ (645,229) | $ (609,770) | $ (933,927) | |||
[1] | Adoption of ASU 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. | |||||||
[2] | Adoption of ASU 2016-02, Topic 842, Leases . See Note 2, Recent Accounting Pronouncements, in our Annual Report on Form 10-K filed on April 16, 2020. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders’ Investment (Parenthetical) | 12 Months Ended |
Jan. 29, 2022$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Declaration of dividends (in dollars per share) | $ 0.25 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Critical and Significant Accounting Policies | 12 Months Ended |
Jan. 29, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Critical and Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF CRITICAL AND SIGNIFICANT ACCOUNTING POLICIES Business Hibbett, Inc. is a leading athletic-inspired fashion retailer primarily located in small and mid-sized communities across the country. References to “we,” “our,” “us,” “Hibbett” and the “Company” refer to Hibbett, Inc. and its subsidiaries as well as its predecessors. Our fiscal year ends on the Saturday closest to January 31 of each year. The consolidated statements of operations for Fiscal 2022, Fiscal 2021 and Fiscal 2020 all include 52-weeks of operations. Our merchandise assortment features a core selection of brand name merchandise emphasizing athletic footwear, athletic and fashion apparel, related accessories, and team sports equipment. We complement this core assortment with a selection of localized footwear, apparel, and accessories designed to appeal to a wide range of customers within each market. Principles of Consolidation The consolidated financial statements of our Company include its accounts and the accounts of all wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. 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 or stockholders’ investment in any of the years presented. Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (U.S. GAAP) requires management to make certain estimates and assumptions that affect the reported amount of assets and liabilities, revenues and expenses, and the disclosure of intangible assets and contingent liabilities at the date of the financial statements. We believe our estimates are reasonable; however, the assumptions used by management could change significantly in future estimates due to changes in circumstances and actual results could differ materially from those estimates. Reportable Segments Hibbett, Inc., through its subsidiaries, has approximately 1,100 stores operating under the Hibbett and City Gear brands and an omni-channel platform. We identify our operating segments according to how our business activities are managed and evaluated by our chief executive officer, who is our chief operating decision maker. Our shopping channels primarily include store locations, website, and mobile apps. Store sales are primarily filled from the store’s inventory but may also be shipped from a different store location or our logistics network if an item is not available at the original store. Direct-to-consumer orders are generally shipped to our customers from a store, our logistics network, or some combination thereof, depending on the availability of the desired item. Given the economic similarity of the store formats, the products offered for sale, the type of customers, the methods of distribution, and how our Company is managed, our operations constitute only one reportable segment. Vendor Arrangements We enter into arrangements with some of our vendors that entitle us to a partial refund of the cost of merchandise purchased during the year or reimbursement of certain costs we incur to advertise or otherwise promote their product. Volume-based rebates, supported by vendor agreements, are estimated throughout the year and reduce the cost of inventories and cost of goods sold during the year. This estimate is regularly monitored and adjusted for sales activity and current or anticipated changes in purchase levels. We also receive consideration from vendors through a variety of other programs, including markdown reimbursements, vendor compliance charges, and defective merchandise credits. If the payment is a reimbursement for costs incurred, it is recognized as an offset against those related costs; otherwise, it is treated as a reduction to the cost of merchandise. Markdown reimbursements related to merchandise that has been sold are negotiated by our merchandising teams and are credited directly to cost of goods sold in the period received. If vendor funds are received prior to merchandise being sold, they are recorded as a reduction of merchandise cost. Vendor compliance charges and defective merchandise credits reduce the cost of inventories. Marketing We expense marketing costs when incurred. We participate in various marketing cooperative programs with our vendors, who, under these programs, reimburse us for certain costs incurred. The following table presents the components of our marketing expense (in thousands): Fiscal Year Ended January 29, January 30, February 1, Gross marketing costs $ 32,964 $ 23,576 $ 18,408 Marketing reimbursements (4,525) (1,524) (2,938) Net marketing costs $ 28,439 $ 22,052 $ 15,470 Cost of Goods Sold We include merchandise costs, store occupancy costs, logistics-related occupancy and operating costs, and ship-to-home freight in cost of goods sold. Stock Repurchase Program On May 26, 2021, our Board of Directors (the "Board") authorized the expansion and extension of our existing Stock Repurchase Program (the "Repurchase Program") by $500.0 million to a total of $800.0 million to repurchase our common stock through February 1, 2025. The Repurchase Program's original authorization was approved in November 2015 in the amount of $300.0 million and prior to the Board's action, was scheduled to expire on January 29, 2022. The Repurchase 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 Repurchase Program, we also acquire shares of our common stock from holders of restricted stock unit awards to satisfy withholding tax requirements due at vesting. Shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements do not reduce the authorized amounts of repurchases under the Repurchase Program. The number of shares repurchased under the Repurchase Program and acquired from holders of restricted stock unit awards to satisfy tax withholding requirements were as follows: 52-Weeks Ended January 29, 2022 January 30, 2021 February 1, 2020 Common stock repurchased under the Repurchase Program 3,370,751 620,785 1,594,074 Aggregate cost of repurchases under the Repurchase Program (in thousands) $ 267,826 $ 17,615 $ 35,459 Shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements 46,095 42,449 29,432 Tax withholding requirements from holders of restricted stock unit awards (in thousands) $ 3,257 $ 897 $ 555 Historically, under all stock repurchase authorizations and including shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements, we have repurchased a total of 26.3 million shares of our common stock at an approximate cost of $933.9 million as of January 29, 2022 and had approximately $368.5 million remaining under the Repurchase Program authorization. Shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements do not reduce the authorization. Subsequent to January 29, 2022, we repurchased 0.3 million shares of our common stock as of March 22, 2022 at a cost of $12.6 million, including 8,277 shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements of $0.4 million. Dividends On August 25, 2021, the Board instituted a quarterly cash dividend program with the first cash dividend payment made on September 9, 2021. During the fiscal year ended January 29, 2022, we paid cash dividends of $10.9 million under three declarations at $0.25 per share of common stock outstanding as of the record date. While we currently pay a quarterly dividend of $0.25 per share and expect to pay comparable cash dividends in the future, the declaration of dividends and the establishment of the per share amount, record dates and payment dates for any such future dividends are subject to the final determination of our Board of Directors and will be dependent upon our financial condition, results of operations, capital requirements and such other factors as our Board of Directors deems relevant. There can be no assurance that we will continue to declare dividends in any particular amounts or at all, and changes in our dividend policy could adversely affect the market price of our common stock. Subsequent to January 29, 2022, the Board declared a cash dividend of $0.25 per common share, payable on March 29, 2022, to stockholders of record at the close of business on March 17, 2022. The estimated payment is expected to be $3.3 million. Cash and Cash Equivalents We consider all short-term, highly liquid investments with original maturities of 90 days or less, including commercial paper and money market funds, to be cash equivalents. Amounts due from third-party credit card processors for the settlement of debit and credit card transactions are included as cash equivalents as they are generally collected within three Inventories Inventories are valued using the lower of weighted average cost or net realizable value method. Items are removed from inventory using the weighted average cost method. Lower of Cost and Net Realizable Value: We regularly review inventories to determine if the carrying value exceeds net realizable value, and we record an accrual to reduce the carrying value to net realizable value as necessary. We account for obsolescence as part of our lower of cost and net realizable value accrual based on historical trends and specific identification. As of January 29, 2022 and January 30, 2021, the accrual was $5.3 million and $6.2 million, respectively. A determination of net realizable value requires significant judgment. Shrink Reserves: We accrue for inventory shrinkage based on the actual historical results of our physical inventory counts. These estimates are compared to actual results as physical inventory counts are performed and reconciled to the general ledger. Physical inventory counts are performed on a cyclical basis. As of January 29, 2022 and January 30, 2021, the accrual was $0.9 million and $1.9 million, respectively. Inventory Purchase Concentration: Our business is dependent to a significant degree upon close relationships with our vendors. Our largest vendor, Nike, represented 61.0%, 65.0%, and 67.7% of our purchases for Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. Our second largest vendor, adidas, represented 6.9%, 6.6%, and 7.2% of our purchases for Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. 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 6, Leases). Property and equipment consists of the following (in thousands): January 29, January 30, Land $ 7,277 $ 7,277 Buildings 22,247 21,505 Equipment 119,505 104,431 Furniture and fixtures 59,137 42,448 Leasehold improvements 137,279 109,220 Construction in progress 4,086 1,470 Total property and equipment 349,531 286,351 Less: accumulated depreciation and amortization 203,564 179,192 Total property and equipment, net $ 145,967 $ 107,159 Depreciation on property and equipment utilizes the straight-line method generally over the following estimated service lives: Buildings 39 years Leasehold improvements 3 – 10 years Furniture and fixtures 7 years Equipment 3 – 7 years In the case of leasehold improvements, we calculate depreciation using the shorter of the term of the underlying leases or the estimated economic lives of the improvements. The term of the lease includes option periods when exercise of the option is reasonably certain. We continually reassess the remaining useful life of leasehold improvements in light of store closing plans. Construction in progress has historically been comprised primarily of property and equipment related to unopened stores and amounts associated with technology upgrades. Maintenance and repairs are charged to expense as incurred. The cost and accumulated depreciation of assets sold, retired or otherwise disposed of are removed from property and equipment and the related gain or loss is credited or charged to net income, net of proceeds received. Goodwill and Indefinite-Lived Intangible Assets Goodwill and the City Gear tradename are indefinite-lived intangible 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 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 first quarter of Fiscal 2021. 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 first quarter of Fiscal 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 Fiscal 2022 or Fiscal 2020. A reconciliation of goodwill is as follows (in thousands): Goodwill balance at February 1, 2020 $ 19,661 Impairment losses (19,661) Goodwill balance at January 30, 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 first quarter of Fiscal 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. No impairment related to the tradename was recognized during Fiscal 2022 or Fiscal 2020. A reconciliation of the tradename intangible for Fiscal 2021 is as follows (in thousands): Tradename intangible asset balance at February 1, 2020 $ 32,400 Impairment losses (8,900) Tradename intangible asset balance at January 30, 2021 $ 23,500 Long-Lived Assets Long-lived assets, including lease assets, are evaluated for impairment whenever events or circumstances indicate that the carrying value may not be recoverable. The evaluation for long-lived assets is performed at the lowest level of identifiable cash flows, which is generally the individual store level. When evaluating long-lived assets for impairment, we first compare the carrying value of the asset or asset group to its estimated undiscounted future cash flows. Our estimate of undiscounted future cash flows is based on historical operations and predictions of future profitability. Significant assumptions are required to estimate cash inflows and outflows directly resulting from the use of assets in operations, including margin on net sales, occupancy costs, payroll and related costs, and other costs to operate a store. If the estimated future cash flows are less than the carrying value of the related asset, we calculate an impairment loss. The impairment loss calculation compares the carrying value of the related asset or asset group to its estimated fair value, which may be based on an estimated future cash flow model, quoted market value, or other valuation technique, as appropriate. We recognize an impairment loss if the amount of the asset’s carrying value exceeds the asset’s estimated fair value. If we recognize an impairment loss, the adjusted carrying amount of the asset becomes its new cost basis. For depreciable long-lived assets, the new cost basis will be depreciated (amortized) over the remaining estimated useful life of that asset. Impairment loss calculations require significant judgment to estimate future cash flows and asset fair values. 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. The net deferred revenue liability for gift cards, customer orders, and layaways at January 29, 2022 and January 30, 2021 was $9.6 million and $8.8 million, respectively, recognized in accounts payable on our 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. In Fiscal 2022, Fiscal 2021 and Fiscal 2020, gift card breakage income was immaterial for all years. During the fiscal years ended January 29, 2022, January 30, 2021, and February 1, 2020, $1.4 million, $1.2 million and $1.7 million of gift card deferred revenue from prior periods was realized, respectively. 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 consolidated balance sheets and was $3.7 million and $3.4 million at January 29, 2022 and January 30, 2021, 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 accounts payable on our 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. Revenues disaggregated by major product categories are as follows (in thousands): Fiscal 2022 Fiscal 2021 Fiscal 2020 Footwear $ 1,044,191 $ 911,789 $ 735,613 Apparel 483,236 384,431 307,600 Equipment 163,757 123,437 141,021 $ 1,691,184 $ 1,419,657 $ 1,184,234 Store Opening and Closing Costs New store opening costs, including pre-opening costs, are charged to expense as incurred. Store opening costs primarily include payroll expenses, training costs and straight-line rent expenses. All pre-opening costs are included in store operating, selling and administrative expenses as a part of operating expenses. We generally consider individual store closings to be a normal part of operations and regularly review store performance against expectations. Costs associated with store closings are recognized at the time of closing or when a liability has been incurred. These costs were not material in Fiscal 2022, Fiscal 2021 or Fiscal 2020. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Jan. 29, 2022 | |
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 Accounting Standards Update ("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. We adopted ASU 2016-13, Topic 326, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , as of February 2, 2020. ASU 2016-13 revised the measurement of credit losses for financial assets measured at amortized cost from an incurred loss methodology to an expected loss methodology. Historical experience, current economic conditions and reasonable supportable forecasts are considered in establishing an allowance for credit losses which is shown on the consolidated balance sheet in receivables, net. The adoption of ASU 2016-13 did not have a material impact on our consolidated financial statements. Standards that are not yet adopted We continuously monitor and review all current accounting pronouncements and standards from the FASB for applicability to our operations. As of January 29, 2022, there were no other new pronouncements or interpretations that had or were expected to have a significant impact on our operations. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 29, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION At January 29, 2022, we had four stock-based compensation plans: (a) The Amended and Restated 2015 Equity Incentive Plan (EIP) provides that the Board may grant equity awards to certain employees of the Company at its discretion. The EIP was adopted effective July 1, 2015 and subsequently amended and restated effective May 28, 2020. Including shares added in the amendment and restatement, the EIP authorizes grants of equity awards of up to 2,500,000 authorized but unissued shares of common stock. At January 29, 2022, there were 1,510,547 shares available for grant under the EIP. (b) The 2015 Employee Stock Purchase Plan (ESPP) allows for qualified employees to participate in the purchase of up to 300,000 shares of our common stock at a price equal to 85% of the lower of the closing price at the beginning or end of each quarterly stock purchase period. The ESPP was adopted effective July 1, 2015. At January 29, 2022, there were 152,096 shares available for purchase under the ESPP. (c) The 2015 Director Deferred Compensation Plan (Deferred Plan) allows non-employee directors an election to defer all or a portion of their fees into stock units or stock options. The Deferred Plan was adopted effective July 1, 2015 and authorizes grants up to 150,000 authorized but unissued shares of common stock. At January 29, 2022, there were 121,194 shares available for grant under the Deferred Plan. (d) The 2012 Non-Employee Director Equity Plan (DEP) provides for grants of equity awards to non-employee directors. The DEP was adopted effective May 24, 2012 and authorizes grants of equity awards of up to 500,000 authorized but unissued shares of common stock. At January 29, 2022, there were 104,828 shares available for grant under the DEP. Our plans allow for a variety of equity awards including stock options, restricted stock awards, stock appreciation rights and performance awards. As of January 29, 2022, we had only granted awards in the form of stock options, restricted stock units (RSUs) and performance-based units (PSUs) to our employees. The annual grants made for Fiscal 2022, Fiscal 2021 and Fiscal 2020 to employees consisted solely of RSUs. We have also awarded PSUs to our Named Executive Officers (NEOs) and expect the Compensation Committee of the Board will continue to grant PSUs to our NEOs in the future. Due to the economic uncertainties at the onset of the COVID-19 pandemic, coupled with the timing of our annual equity awards , the Board elected to award only service-based units to our NEOs in Fiscal 2021. As of January 29, 2022, we had only granted awards in the form of stock, stock options and deferred stock units (DSUs) to our Board members. Under the DEP, Board members currently receive an annual value of $75,000 worth of equity in the form of stock options or RSUs upon election to the Board and a value of $110,000 worth of equity in any form allowed within the DEP, for each full year of service, pro-rated for Directors who have served less than one full year. The Chairman of the Board receives an annual value of $135,000 of equity in any form allowed within the DEP. Due to the economic uncertainties at the onset of the COVID-19 pandemic, coupled with the timing of our annual equity awards, the Board elected to reduce the value of the annual equity award to each applicable Director in Fiscal 2021. The terms and vesting schedules for stock-based awards vary by type of grant and generally vest upon time-based conditions. Under the DEP, Directors have the option with certain equity forms to set vesting dates. Upon exercise, stock-based compensation awards are settled with authorized but unissued company stock. All of our awards are classified as equity awards. The compensation cost for these plans was as follows (in thousands): Fiscal Year Ended January 29, January 30, February 1, Stock-based compensation expense by type: Stock options $ 174 $ 90 $ 92 Restricted stock units 5,111 3,495 2,370 Employee stock purchases 199 120 97 Director deferred compensation 56 94 94 Total stock-based compensation expense 5,540 3,799 2,653 Income tax benefit recognized 1,316 882 622 Stock-based compensation expense, net of income tax $ 4,224 $ 2,917 $ 2,031 Stock-based and deferred stock compensation expenses are included in store operating, selling and administrative expenses. There is no capitalized stock-based compensation cost. The income tax benefit recognized in our consolidated financial statements, as disclosed above, is based on the amount of compensation expense recorded for book purposes. The actual income tax benefit realized in our income tax return is based on the intrinsic value, or the excess of the market value over the exercise or purchase price, of stock options exercised and restricted stock unit awards vested during the period. The actual income tax benefit realized for the deductions considered on our income tax returns for Fiscal 2022, Fiscal 2021 and Fiscal 2020 was from option exercises and restricted stock unit releases and totaled $3.2 million, $1.0 million and $0.6 million, respectively. Stock Options Stock options are granted with an exercise price equal to the closing market price of our common stock on the business day immediately preceding the date of grant. Vesting and expiration provisions vary between equity plans, but options granted to employees under the EIP typically vest over a four eight ten ten During Fiscal 2022, we had one stock option grant dated March 22, 2021 to directors. A total of 4,384 stock options were granted at an exercise price of $76.04 per share. The fair value of the grants was $39.73 per share, which was estimated on the date of grant using the Black-Scholes pricing model assuming an expected life of 4.63 years, expected volatility of 64.75%, a risk-free interest rate of 0.77% with no dividend yield. We calculate the expected term for our stock options based on the historical exercise behavior of our participants. The volatility used to value stock options is based on historical volatility. We calculate historical volatility using an average calculation methodology based on daily price intervals as measured over the expected term of the option. We have consistently applied this methodology since our adoption of the provisions of ASC Topic 718, Stock Compensation . In accordance with ASC Topic 718, we base the risk-free interest rate on the annual continuously compounded risk-free rate with a term equal to the option’s expected term. The dividend yield was zero since we had not historically declared dividends when the award was granted. Activity for our option plans during Fiscal 2022 was as follows: Number of Weighted Weighted Aggregate Options outstanding at January 30, 2021 227,258 $ 37.15 4.39 $ 4,407 Granted 4,384 76.04 Exercised (65,716) 29.45 Forfeited, cancelled or expired — — Options outstanding at January 29, 2022 165,926 $ 41.28 3.66 $ 3,106 Exercisable at January 29, 2022 165,926 $ 41.28 3.66 $ 3,106 The weighted average grant-date fair value of options granted during Fiscal 2022, Fiscal 2021 and Fiscal 2020 was $39.73, $3.33 and $5.46, respectively. The total intrinsic value of stock options exercised during Fiscal 2022, Fiscal 2021 and Fiscal 2020 was $2.7 million, $0.8 million and $9.6 thousand, respectively. The total cash received from these stock option exercises during Fiscal 2022, Fiscal 2021 and Fiscal 2020 was $4.7 million, $1.8 million and $0.1 million, respectively. As of January 29, 2022, there was no unamortized unrecognized compensation cost related to stock options. Restricted Stock and Performance-Based Units RSUs and PSUs are granted with a fair value equal to the closing market price of our common stock on the date of grant. All PSUs have been awarded in the form of restricted stock units. An award may vest completely at a point in time (cliff-vest) or in increments over time (graded-vest). The majority of awards, including PSUs, are subject to cliff-vest provisions. A small portion of awards to our executive officers are subject to graded vest provisions. Generally, RSUs vest over two PSUs provide for awards based on achievement of certain predetermined corporate performance goals and typically cliff-vest in three years from the date of grant after achievement of stated performance criterion and upon meeting stated service conditions. Compensation cost is recognized on a straight-line basis over the vesting period for cliff-vest awards and, in the case of PSUs, at the estimated percentage of achievement. For graded-vest awards, the award is divided into vesting tranches and the compensation cost is recognized on a straight-line basis for each tranche separately. The following table summarizes the restricted stock unit awards activity under all our plans during Fiscal 2022: RSUs PSUs Totals Number of Weighted Number of Weighted Number of Weighted Nonvested at January 30, 2021 655,031 $ 17.98 19,060 $ 19.56 674,091 $ 18.02 Granted 62,031 76.28 22,492 76.04 84,523 76.22 PSU adjustment (1) — — 3,900 22.55 3,900 22.55 Vested (140,075) 22.23 (10,335) 22.55 (150,410) 22.25 Forfeited, cancelled or expired (21,489) 21.43 — — (21,489) 21.54 Nonvested at January 29, 2022 555,498 $ 23.28 35,117 $ 55.19 590,615 $ 25.18 (1) PSU adjustment represents the net RSUs awarded to our NEOs above or below their target grants resulting from the achievement of performance goals above or below the performance targets established at grant. One grant goal was achieved at 200% of its target based on Fiscal 2019 through Fiscal 2021 financial results. The weighted average grant date fair value of our RSUs granted was $76.22, $12.42 and $18.68 for Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. There were 84,523, 337,749 and 296,583 RSUs awarded during Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. During Fiscal 2022, 150,410 RSU awards, including 10,335 PSU awards, vested with an intrinsic value of $10.5 million. The total intrinsic value of our RSU awards outstanding and unvested at January 29, 2022, January 30, 2021 and February 1, 2020 was $35.2 million, $38.1 million and $14.5 million, respectively. As of January 29, 2022, there was approximately $7.0 million of total unamortized unrecognized compensation cost related to RSU awards. This cost is expected to be recognized over a weighted average period of 2.0 years. Employee Stock Purchase Plan The Company’s ESPP allows eligible employees the right to purchase shares of our common stock, subject to certain limitations, at 85% of the lesser of the market value at the end of each calendar quarter (purchase date) or the beginning of each calendar quarter. Our employee purchases of common stock and the average price per share through the ESPP were as follows: Fiscal Year Ended Shares Average Price January 29, 2022 14,447 $ 50.01 January 30, 2021 36,059 $ 11.99 February 1, 2020 26,116 $ 15.02 The assumptions used in the option pricing model were as follows: Fiscal Year Ended January 29, January 30, February 1, Weighted average fair value at date of grant $14.33 $4.18 $4.18 Expected life (years) 0.25 0.25 0.25 Expected volatility 49.2% - 50.4% 41.4% - 50.2% 34.3% - 36.5% Risk-free interest rate 0.11% - 0.33% 0.20% - 3.60% 4.24% - 5.73% Dividend yield 1.12% - 1.41% None None The expense related to the ESPP was determined using the Black-Scholes option pricing model and the provisions of ASC Topic 718 as it relates to accounting for certain employee stock purchase plans with a look-back option. The compensation expense included in store operating, selling and administrative expenses and recognized during each of Fiscal 2022, Fiscal 2021 and Fiscal 2020 was $0.2 million, $0.1 million, and $0.1 million, respectively. Director Deferred Compensation Under the Deferred Plan, non-employee directors can elect to defer all or a portion of their Board and Board Committee fees into cash, stock options or deferred stock units. Those fees deferred into stock options are subject to the same provisions as provided for in the DEP and are expensed and accounted for accordingly. Director fees deferred into stock units are calculated and expensed each calendar quarter by taking deferred fees earned during the calendar quarter and dividing by the closing price of our common stock on the last day of the calendar quarter, rounded to the nearest whole share. Director fees deferred into stock units are calculated and expensed each calendar quarter by taking deferred fees earned during the calendar quarter and dividing by the closing price of our common stock on the business day immediately preceding the last day of the calendar quarter, rounded to the nearest whole share. The total annual retainer, Board and Board Committee fees for non-employee directors that are not deferred into stock options, but which includes amounts deferred into stock units under the Deferred Plan, are expensed as incurred in all periods presented. A total of 729, 4,368 and 4,174 stock units were deferred under this plan in Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. One director has elected to defer all or a portion of her compensation into stock units in calendar 2022. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 29, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The computation of basic earnings per share (EPS) is based on the number of weighted average 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 computation of basic and diluted earnings per share in thousands: Fiscal Year Ended January 29, January 30, February 1, Net income $ 174,313 $ 74,266 $ 27,344 Weighted average number of common shares outstanding 14,993 16,547 17,746 Dilutive stock options 130 77 11 Dilutive restricted stock units 459 413 200 Weighted average number of common shares outstanding and dilutive shares 15,582 17,037 17,957 Basic earnings per share $ 11.63 $ 4.49 $ 1.54 Diluted earnings per share $ 11.19 $ 4.36 $ 1.52 In calculating diluted earnings per share, no options to purchase shares of common stock outstanding as of the end of the period were excluded in the computations of diluted earnings per share due to their anti-dilutive effect in Fiscal 2022. In calculating diluted earnings per share, 95,724 and 148,821 options to purchase shares of common stock outstanding as of the end of the period were excluded in the computations of diluted earnings per share due to their anti-dilutive effect in Fiscal 2021 and Fiscal 2020, respectively. |
Debt
Debt | 12 Months Ended |
Jan. 29, 2022 | |
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. On April 16, 2020, we entered into the Second Amended and Restated Note with Regions Bank (the "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 was secured by all assets of the Company with the exception of real property. Simultaneous to 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. On July 9, 2021, we executed a new unsecured Credit Agreement (the "2021 Credit Facility") between the Company and its subsidiaries and Regions Bank, which supersedes the Amended Credit Facility, provides an unsecured line of credit of up to $100.0 million. The 2021 Credit Facility is effective through July 9, 2026 with an interest rate of one-month LIBOR plus 1.0% to 1.8% depending on specified leverage levels. The 2021 Credit Facility includes an annual commitment fee, payable quarterly in arrears, in an amount between 15 and 20 basis points of the unused portion of the line of credit as determined on a daily basis, dependent on the amount of debt outstanding. In addition, the Company is subject to certain financial covenants which include: • Advance limitation of 55% of the net book value of the Company's inventory; • A Consolidated Lease-Adjusted Leverage Ratio comparing lease-adjusted funded debt (funded debt plus all lease liabilities) to EBITDAR (as defined in the 2021 Credit Facility) with a maximum of 3.5x; and • A Consolidated Fixed Coverage Charge Ratio comparing EBITDAR to fixed charges and certain current liabilities (as defined in the 2021 Credit Facility) with a minimum of 1.2x. As of January 29, 2022, we were in compliance with these covenants. Given the International Exchange Benchmark Administration’s announced phase-out of LIBOR, the 2021 Credit Facility includes a LIBOR phase-out provision. If, during the term of the 2021 Credit Facility, the lender determines that LIBOR is unavailable, impracticable or unreliable for use, the variable interest rate will be determined based on a substitute index which may be Term SOFR, Daily Simple SOFR, or an alternate rate index that has been selected by the Lender as the replacement for LIBOR. The replacement index will then become the operative interest rate index for borrowings under the 2021 Credit Facility, subject to provisions set forth in the 2021 Credit Facility. There were 21 days during the 52-weeks ended January 29, 2022, where we incurred borrowings against our credit facility for an average and maximum borrowing of $2.0 million and $18.7 million, respectively, and an average interest rate of 1.35%. At January 29, 2022, a total of $100.0 million was available to us from the 2021 Credit Facility. There were 97 days during the 52-weeks ended January 30, 2021, where we incurred borrowings against our prior 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%. |
Leases
Leases | 12 Months Ended |
Jan. 29, 2022 | |
Leases [Abstract] | |
Leases | LEASES We lease our retail store locations, nearly all of which are operating leases. Store leases typically provide for initial terms of five • scheduled increases in rent payments over the lease term; • tenant inducements; • free rent periods; • contingent rent based on net sales in excess of stipulated amounts; • one or more renewal options at our discretion; and • payments for common area maintenance, insurance and real estate taxes, most of which are variable in nature. Most of our store leases contain provisions that allow for early termination between the third and fifth year of the term if predetermined sales levels are not met, or upon the occurrence of other specified contingent events. When we have the option to extend the lease term (including by not exercising an available termination option) or purchase the leased asset, and it is reasonably certain that we will do so, we consider these options in determining the classification and measurement of the lease. However, generally at lease commencement, it is not reasonably certain that we will exercise an extension or purchase option. For contingent termination provisions, we consider both the likelihood of the contingency occurring in addition to the economic factors we consider when assessing any other termination or renewal option. We also lease certain office, transportation and technology equipment under operating and finance leases. Generally, these leases have initial terms of two We determine whether an arrangement is a lease at inception. We have lease agreements that contain both lease and non-lease components. For store leases, we account for the lease components together with the non-lease components, such as common area maintenance. For office and transportation equipment leases, we separate the non-lease components from the lease components. Operating lease liabilities are recognized based on the present value of remaining fixed lease payments over the lease term. Operating lease ROU assets are recognized based on the calculated lease liability, adjusted for lease prepayments, initial direct costs and tenant inducements. Because the implicit rate is generally not readily determinable for our leases, we use our estimated incremental borrowing rate, on a collateralized basis over a similar term, as the discount rate to measure operating lease liabilities. Due to the absence of an independently published credit rating, our estimated incremental borrowing rate is determined based on a synthetic credit rating. We use a blend of a financial ratio analysis and a Z-spread analysis to calculate our synthetic credit rating. Our most recent debt instrument terms and interest rates are also considered. The collateralized synthetic credit rating is then used to determine the yield most consistent with the tenor of our portfolio lease term and is adjusted on an ongoing basis by the movement in the market rates. The collateralized synthetic credit rating is reevaluated periodically as needed based on company-specific and market conditions. Operating lease cost for fixed lease payments is recognized on a straight-line basis over the lease term. Variable lease payments are generally expensed as incurred. ROU lease assets are periodically reviewed for impairment losses. We use the long-lived assets impairment guidance in ASC Subtopic 360-10, Property, Plant, and Equipment - Overall , to determine when to evaluate assets and asset groups, including ROU assets, for impairment and to calculate any impairment loss to be recognized. Asset group impairment charges of approximately $2.9 million, $8.5 million and $1.5 million were recognized during Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. In April 2020, FASB issued interpretive guidance to respond to some frequently asked questions about accounting for lease concessions related to the effects of the COVID-19 pandemic. Under current U.S. GAAP, subsequent changes to lease payments that are not stipulated in the original lease are generally accounted for as lease modifications under ASC Topic 842. The interpretive guidance grants relief by allowing companies to make an accounting policy election to not evaluate lease concessions related to the effects of the COVID-19 pandemic as lease modifications. We elected not to utilize this exception and accounted for the COVID-19 pandemic related lease concessions as modifications triggering lease remeasurement. Store operating lease cost and logistics-related transportation equipment operating lease cost are included in cost of goods sold in the consolidated statements of operations. Office equipment and other transportation equipment operating lease cost is included in store operating, selling and administrative expenses in the consolidated statements of operations. January 29, January 30, February 1, Operating lease cost $ 68,359 $ 67,030 $ 71,096 Finance lease cost: Amortization of assets 849 913 943 Interest on lease liabilities 136 179 223 Variable lease cost (1) 18,379 13,328 11,757 $ 87,723 $ 81,450 $ 84,019 (1) Includes rent based on a percent of sales, common area maintenance, insurance and property tax. Short-term leases are not recorded on our consolidated balance sheet and short-term lease cost is immaterial. Finance right-of-use assets on the consolidated balance sheet at January 29, 2022 and January 30, 2021 are shown net of accumulated amortization of $2.5 million and $1.7 million, respectively. The following table provides supplemental balance sheet information related to leases: January 29, January 30, Weighted average remaining lease term (in years): Operating leases 5 5 Finance leases 3 4 Weighted average discount rate: Operating leases 3.0 % 3.5 % Finance leases 5.1 % 5.5 % Maturities of lease liabilities (in thousands): January 29, 2022 Operating Finance Total Fiscal 2023 $ 75,809 $ 1,060 $ 76,869 Fiscal 2024 66,530 992 $ 67,522 Fiscal 2025 53,542 282 $ 53,824 Fiscal 2026 39,749 201 $ 39,950 Fiscal 2027 28,173 — $ 28,173 Thereafter 39,058 — $ 39,058 Total minimum lease payments 302,861 2,535 305,396 Less amount representing interest 21,991 133 22,124 $ 280,870 $ 2,402 $ 283,272 As of January 29, 2022, we have entered into operating leases of approximately $7.7 million related to future store locations that have not yet commenced. |
Leases | LEASES We lease our retail store locations, nearly all of which are operating leases. Store leases typically provide for initial terms of five • scheduled increases in rent payments over the lease term; • tenant inducements; • free rent periods; • contingent rent based on net sales in excess of stipulated amounts; • one or more renewal options at our discretion; and • payments for common area maintenance, insurance and real estate taxes, most of which are variable in nature. Most of our store leases contain provisions that allow for early termination between the third and fifth year of the term if predetermined sales levels are not met, or upon the occurrence of other specified contingent events. When we have the option to extend the lease term (including by not exercising an available termination option) or purchase the leased asset, and it is reasonably certain that we will do so, we consider these options in determining the classification and measurement of the lease. However, generally at lease commencement, it is not reasonably certain that we will exercise an extension or purchase option. For contingent termination provisions, we consider both the likelihood of the contingency occurring in addition to the economic factors we consider when assessing any other termination or renewal option. We also lease certain office, transportation and technology equipment under operating and finance leases. Generally, these leases have initial terms of two We determine whether an arrangement is a lease at inception. We have lease agreements that contain both lease and non-lease components. For store leases, we account for the lease components together with the non-lease components, such as common area maintenance. For office and transportation equipment leases, we separate the non-lease components from the lease components. Operating lease liabilities are recognized based on the present value of remaining fixed lease payments over the lease term. Operating lease ROU assets are recognized based on the calculated lease liability, adjusted for lease prepayments, initial direct costs and tenant inducements. Because the implicit rate is generally not readily determinable for our leases, we use our estimated incremental borrowing rate, on a collateralized basis over a similar term, as the discount rate to measure operating lease liabilities. Due to the absence of an independently published credit rating, our estimated incremental borrowing rate is determined based on a synthetic credit rating. We use a blend of a financial ratio analysis and a Z-spread analysis to calculate our synthetic credit rating. Our most recent debt instrument terms and interest rates are also considered. The collateralized synthetic credit rating is then used to determine the yield most consistent with the tenor of our portfolio lease term and is adjusted on an ongoing basis by the movement in the market rates. The collateralized synthetic credit rating is reevaluated periodically as needed based on company-specific and market conditions. Operating lease cost for fixed lease payments is recognized on a straight-line basis over the lease term. Variable lease payments are generally expensed as incurred. ROU lease assets are periodically reviewed for impairment losses. We use the long-lived assets impairment guidance in ASC Subtopic 360-10, Property, Plant, and Equipment - Overall , to determine when to evaluate assets and asset groups, including ROU assets, for impairment and to calculate any impairment loss to be recognized. Asset group impairment charges of approximately $2.9 million, $8.5 million and $1.5 million were recognized during Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. In April 2020, FASB issued interpretive guidance to respond to some frequently asked questions about accounting for lease concessions related to the effects of the COVID-19 pandemic. Under current U.S. GAAP, subsequent changes to lease payments that are not stipulated in the original lease are generally accounted for as lease modifications under ASC Topic 842. The interpretive guidance grants relief by allowing companies to make an accounting policy election to not evaluate lease concessions related to the effects of the COVID-19 pandemic as lease modifications. We elected not to utilize this exception and accounted for the COVID-19 pandemic related lease concessions as modifications triggering lease remeasurement. Store operating lease cost and logistics-related transportation equipment operating lease cost are included in cost of goods sold in the consolidated statements of operations. Office equipment and other transportation equipment operating lease cost is included in store operating, selling and administrative expenses in the consolidated statements of operations. January 29, January 30, February 1, Operating lease cost $ 68,359 $ 67,030 $ 71,096 Finance lease cost: Amortization of assets 849 913 943 Interest on lease liabilities 136 179 223 Variable lease cost (1) 18,379 13,328 11,757 $ 87,723 $ 81,450 $ 84,019 (1) Includes rent based on a percent of sales, common area maintenance, insurance and property tax. Short-term leases are not recorded on our consolidated balance sheet and short-term lease cost is immaterial. Finance right-of-use assets on the consolidated balance sheet at January 29, 2022 and January 30, 2021 are shown net of accumulated amortization of $2.5 million and $1.7 million, respectively. The following table provides supplemental balance sheet information related to leases: January 29, January 30, Weighted average remaining lease term (in years): Operating leases 5 5 Finance leases 3 4 Weighted average discount rate: Operating leases 3.0 % 3.5 % Finance leases 5.1 % 5.5 % Maturities of lease liabilities (in thousands): January 29, 2022 Operating Finance Total Fiscal 2023 $ 75,809 $ 1,060 $ 76,869 Fiscal 2024 66,530 992 $ 67,522 Fiscal 2025 53,542 282 $ 53,824 Fiscal 2026 39,749 201 $ 39,950 Fiscal 2027 28,173 — $ 28,173 Thereafter 39,058 — $ 39,058 Total minimum lease payments 302,861 2,535 305,396 Less amount representing interest 21,991 133 22,124 $ 280,870 $ 2,402 $ 283,272 As of January 29, 2022, we have entered into operating leases of approximately $7.7 million related to future store locations that have not yet commenced. |
Defined Contribution Benefit Pl
Defined Contribution Benefit Plans | 12 Months Ended |
Jan. 29, 2022 | |
Retirement Benefits [Abstract] | |
Defined Contribution Benefit Plans | DEFINED CONTRIBUTION BENEFIT PLANS We maintain the Hibbett, Inc. 401(k) Plan (the "401(k) Plan") for the benefit of our employees. The 401(k) Plan covers all employees who have completed one year of service. Participants of the 401(k) Plan may voluntarily contribute from 1% to 100% of their compensation subject to certain yearly dollar limitations as allowed by law. These elective contributions are made under the provisions of Section 401(k) of the Internal Revenue Code, which allows deferral of income taxes on the amount contributed to the 401(k) Plan and which operates under the Safe Harbor provisions. For Fiscal 2022, Fiscal 2021 and Fiscal 2020, we matched 100% of the first 3% of eligible compensation and 50% of the next 3% of eligible compensation for a total possible match of 4.5% of the first 6% of eligible compensation. Contribution expense incurred under the 401(k) Plan for Fiscal 2022, Fiscal 2021 and Fiscal 2020 was $2.0 million, $2.1 million and $1.6 million, respectively. We maintain the Hibbett, Inc. Supplemental 401(k) Plan (the "Supplemental Plan") for the purpose of supplementing the employer matching contribution and salary deferral opportunity available to highly compensated employees whose ability to receive Company matching contributions and defer salary under the 401(k) Plan was limited because of certain restrictions applicable to qualified plans. The non-qualified deferred compensation Supplemental Plan allows participants to defer up to 40% of their compensation. Contributions to the Supplemental Plan are not subject to matching provisions; therefore no contribution expense was incurred under the Supplemental Plan for Fiscal 2022, Fiscal 2021 and Fiscal 2020. The Supplemental Plan is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended. We maintain a Flexible Spending Account Plan ("FSA") that allows employees to set aside pre-tax amounts for out-of-pocket health care and dependent care expenses. The health care FSA is subject to ERISA, whereas the dependent care FSA is not. Employees are eligible to participate in the FSA upon meeting eligibility requirements or upon a defined qualifying event, and may enroll annually during an open enrollment period. Plan amounts are determined annually by the employee in advance and are subject to IRS dollar limitations. Employee elections, in general, cannot be increased, decreased or discontinued during the election period. Under the health care FSA, participants can rollover up to $500 of unused amounts at the end of the plan year. Under the dependent care FSA, unused amounts at the end of the plan year are subject to forfeiture and such forfeitures can be used to offset administrative expenses. Pursuant to the Consolidated Appropriations Act 2021, participants can rollover any unused amounts from their health care and dependent care FSAs at the end of the plan year for Fiscal 2022 and Fiscal 2021. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Jan. 29, 2022 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | RELATED-PARTY TRANSACTIONS The Company leases one store under a lease arrangement with Preferred Growth Properties, LLC (formerly 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. In August 2021, the Company exercised an option to extend the term of the lease by five years, with the new term commencing on March 1, 2022 and terminating on February 28, 2027. The minimal annual lease payment of $0.1 million did not change. In each of Fiscal 2022, Fiscal 2021 and Fiscal 2020, minimum lease payments were $0.1 million. Minimum lease payments remaining under this lease at January 29, 2022 were $0.6 million. The Company honored certain contracts in place for its wholly owned subsidiary, City Gear, LLC, upon acquisition in Fiscal 2019. The following listing represents those contracts of which Michael E. Longo, the Company's President and CEO, has an interest in, either directly or indirectly. Memphis Logistics Group ("MLG") MLG provided 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 has been 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. MLG subsequently reorganized as Riverhorse Logistics, LLC. In Fiscal 2021 and Fiscal 2020, payments to MLG under the contract were $7.9 million and $7.2 million, respectively. The amount outstanding to MLG at January 30, 2021 was $0.3 million, and is included in accounts payable on our 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. In Fiscal 2022, Fiscal 2021 and Fiscal 2020, payments to TIG for their services were $6.7 million, $6.1 million and $3.8 million, respectively. The amount outstanding to TIG at January 29, 2022 and January 30, 2021 was $0.6 million and $26,000, respectively, and is included in accounts payable on our 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 location. In Fiscal 2022, there were no minimum lease payments to MC. In Fiscal 2021 and Fiscal 2020, minimum lease payments to MC were $0.1 million and $0.3 million, respectively. There were no amounts outstanding to MC at January 29, 2022 or January 30, 2021. Retail Security Gates, LLC ("RSG") During the second quarter of Fiscal 2022, a close relative of Mr. Longo purchased a 50% interest in an existing Company vendor, which was reorganized as RSG. We utilize RSG for specially manufactured store front security gates. In Fiscal 2022, payments to RSG for their services were $0.3 million. There were no amounts outstanding to RSG at January 29, 2022. In addition to the related party interests listed above, Mr. Longo also had a membership interest in two contingent earnouts ("Earnouts") related to the acquisition of City Gear based on City Gear’s achievement of certain EBITDA thresholds for the 52-weeks ended February 1, 2020 and January 30, 2021, respectively. The Earnouts were in addition to the aggregate consideration payable to the sellers of City Gear, LLC in November 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 29, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES A summary of the components of the provision (benefit) for income taxes is as follows (in thousands): Fiscal Year Ended January 29, January 30, February 1, Federal: Current $ 37,013 $ 23,651 $ 11,724 Deferred 7,142 (4,191) (4,265) 44,155 19,460 7,459 State: Current 9,128 5,580 1,975 Deferred 296 (1,354) (450) 9,424 4,226 1,525 Provision for income taxes $ 53,579 $ 23,686 $ 8,984 A reconciliation of the statutory federal income tax rate to the effective tax rate as a percentage of income before provision for income taxes follows: Fiscal Year Ended January 29, January 30, February 1, Tax provision computed at the federal statutory rate 21.00 % 21.00 % 21.00 % Effect of state income taxes, net of federal benefits 3.50 3.47 3.60 Federal income tax credits (0.40) (0.70) (1.99) Executive compensation limitations 0.52 0.09 1.47 Equity compensation tax (excess) deficiencies (0.97) 0.17 1.71 Other, net (0.14) 0.15 (1.06) 23.51 % 24.18 % 24.73 % Deferred income taxes on the consolidated balance sheets result from temporary differences between the amount of assets and liabilities recognized for financial reporting and income tax purposes. The components of the deferred income taxes, net, are as follows (in thousands): January 29, January 30, Rent $ 72,452 $ 64,369 Inventories 2,795 2,362 Accruals 8,175 11,546 Stock-based compensation 2,704 2,398 Other 85 152 Total deferred tax assets 86,211 80,827 Rent (66,056) (57,776) Accumulated depreciation and amortization (10,440) (6,226) Prepaid expenses (2,336) (1,747) State taxes (192) (453) Total deferred tax liabilities (79,024) (66,202) Deferred income taxes, net $ 7,187 $ 14,625 Deferred tax assets represent items that will be used as a tax deduction or credit in future tax returns or are items of income that have not been recognized for financial statement purposes but were included in the current or prior tax returns for which we have already properly recorded the tax benefit in the consolidated statements of operations. At least quarterly, we assess the likelihood that the deferred tax assets balance will be recovered. We take into account such factors as prior earnings history, expected future earnings, carryback and carryforward periods and tax strategies that could potentially enhance the likelihood of a realization of a deferred tax asset. To the extent recovery is not more likely than not, a valuation allowance is established against the deferred tax asset, increasing our income tax expense in the year such determination is made. We have determined that no such allowance is required. 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 based on technical merits, 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. We file income tax returns in the U.S. federal and various state jurisdictions. A number of years may elapse before a particular matter for which we have recorded a liability related to an unrecognized tax benefit is audited and finally resolved. Generally, we are not subject to changes in income taxes by the U.S. federal taxing jurisdiction for years prior to Fiscal 2019 or by most state taxing jurisdictions for years prior to Fiscal 2018. While it is often difficult to predict the final outcome or the timing of resolution of any particular tax matter, we believe our liability for unrecognized tax benefits is adequate. Favorable settlement of an unrecognized tax benefit could be recognized as a reduction in our effective tax rate in the period of resolution. Unfavorable settlement of an unrecognized tax benefit could increase the effective tax rate and may require the use of cash in the period of resolution. Our liability for unrecognized tax benefits is generally presented as non-current. However, if we anticipate paying cash within one year to settle an uncertain tax position, the liability is presented as current. A reconciliation of the unrecognized tax benefit, excluding estimated interest and penalties, under ASC Subtopic 740-10 follows (in thousands): January 29, January 30, February 1, Unrecognized tax benefits - beginning of year $ 616 $ 818 $ 1,245 Gross increases - tax positions in prior period — 3 — Gross decreases - tax positions in prior period (51) — (234) Gross increases - tax positions in current period — — — Settlements — — — Lapse of statute of limitations (110) (205) (193) Unrecognized tax benefits - end of year $ 455 $ 616 $ 818 We classify interest and penalties recognized on unrecognized tax benefits as income tax expense. We have accrued interest and penalties in the amount of $0.1 million, $0.1 million and $0.1 million as of January 29, 2022, January 30, 2021 and February 1, 2020, respectively. During Fiscal 2022, Fiscal 2021 and Fiscal 2020, we recorded $(18,000), $(28,000) and $(19,000), respectively, for the accrual of interest and penalties in the consolidated statement of operations. Of the unrecognized tax benefits as of January 29, 2022, January 30, 2021 and February 1, 2020, $0.3 million, $0.4 million and $0.6 million, respectively, if recognized, would affect our effective income tax rate. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 29, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Annual Bonuses and Equity Incentive Awards Specified officers and corporate employees of our Company are entitled to annual bonuses, primarily based on measures of Company operating performance. At January 29, 2022 and January 30, 2021, there was $13.0 million and $10.6 million, respectively, of annual bonus-related expense included in accrued payroll expenses. In addition, the Compensation Committee (Committee) of the Board of Directors places performance criteria on awards of PSUs made in the form of RSUs to our NEOs under the EIP. The performance criteria are tied to performance targets with respect to future sales and operating income over a specified period of time. These PSUs are expensed under the provisions of ASC Topic 718 and are evaluated each quarter to determine the probability that the performance conditions set within will be met. We expect the Committee to continue to place performance criteria on awards of RSUs to our NEOs in the future. Legal Proceedings and Other Contingencies We are a party to various legal proceedings incidental to our business. Where we are able to reasonably estimate an amount of probable loss in these matters based on known facts, we have accrued that amount as a current liability on our balance sheet. We are not able to reasonably estimate the possible loss or range of loss in excess of the amount accrued for these proceedings based on the information currently available to us, including, among others, (i) uncertainties as to the outcome of pending proceedings (including motions and appeals) and (ii) uncertainties as to the likelihood of settlement and the outcome of any negotiations with respect thereto. We do not believe that any of these matters will, individually or in the aggregate, have a material effect on our business or financial condition. We cannot give assurance, however, that one or more of these proceedings will not have a material effect on our results of operations for the period in which they are resolved. At January 29, 2022 and January 30, 2021, the estimated liability is immaterial. The estimates of our liability for pending and unasserted potential claims do not include litigation costs. It is our policy to accrue legal fees when it is probable that we will have to defend against known claims or allegations and we can reasonably estimate the amount of the anticipated expense. From time to time, we enter into certain types of agreements that require us to indemnify parties against third-party claims under certain circumstances. Generally, these agreements relate to: (a) agreements with vendors and suppliers under which we may provide customary indemnification to our vendors and suppliers in respect to actions they take at our request or otherwise on our behalf; (b) agreements to indemnify vendors against trademark and copyright infringement claims concerning merchandise manufactured specifically for or on behalf of the Company; (c) real estate leases, under which we may agree to indemnify the lessors from claims arising from our use of the property; and (d) agreements with our directors, officers and employees, under which we may agree to indemnify such persons for liabilities arising out of their relationship with us. We have director and officer liability insurance, which, subject to the policy’s conditions, provides coverage for indemnification amounts payable by us with respect to our directors and officers up to specified limits and subject to certain deductibles. If we believe that a loss is both probable and estimable for a particular matter, the loss is accrued in accordance with the requirements of ASC Topic 450, Contingencies . With respect to any matter, we could change our belief as to whether a loss is probable or estimable, or its estimate of loss, at any time. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 29, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS 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 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): January 29, 2022 January 30, 2021 Level I Level II Level III Level I Level II Level III Short-term investments $ 129 $ — $ — $ 219 $ — $ — Long-term investments 2,352 — — 2,107 — — Short-term contingent earnout — — — — — 15,000 Total $ 2,481 $ — $ — $ 2,326 $ — $ 15,000 Short-term investments are reported in other current assets while long-term investments are reported in other assets, net, in our consolidated balance sheets. Short-term contingent earnout is reported in other accrued expenses on our consolidated balance sheets. The short-term contingent earnout represents the fair value of an additional payment outlined in the Purchase Agreement to the members and warrant holders of City Gear if certain financial goals were achieved in Fiscal 2021. The 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 and any change in valuation flowed through our statements of operations. As a result of the revaluation for the 52-weeks ended January 30, 2021, an increase of $3.9 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): January 29, 2022 January 30,2021 Short-term Long-term Short-term Long-term Beginning balance $ 15,000 $ — $ 9,958 $ 11,099 Change in valuation — — 3,943 — Payment of year one earnout (15,000) — (10,000) — Reclassification from long-term, net — — 11,099 (11,099) Ending balance $ — $ — $ 15,000 $ — |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Critical and Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 29, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of our Company include its accounts and the accounts of all wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. 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 or stockholders’ investment in any of the years presented. |
Use of Estimates in the Preparation of Consolidated Financial Statements | Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (U.S. GAAP) requires management to make certain estimates and assumptions that affect the reported amount of assets and liabilities, revenues and expenses, and the disclosure of intangible assets and contingent liabilities at the date of the financial statements. We believe our estimates are reasonable; however, the assumptions used by management could change significantly in future estimates due to changes in circumstances and actual results could differ materially from those estimates. |
Reportable Segments | Reportable Segments Hibbett, Inc., through its subsidiaries, has approximately 1,100 stores operating under the Hibbett and City Gear brands and an omni-channel platform. We identify our operating segments according to how our business activities are managed and evaluated by our chief executive officer, who is our chief operating decision maker. Our shopping channels primarily include store locations, website, and mobile apps. Store sales are primarily filled from the store’s inventory but may also be shipped from a different store location or our logistics network if an item is not available at the original store. Direct-to-consumer orders are generally shipped to our customers from a store, our logistics network, or some combination thereof, depending on the availability of the desired item. Given the economic similarity of the store formats, the products offered for sale, the type of customers, the methods of distribution, and how our Company is managed, our operations constitute only one reportable segment. |
Vendor Arrangements | Vendor Arrangements We enter into arrangements with some of our vendors that entitle us to a partial refund of the cost of merchandise purchased during the year or reimbursement of certain costs we incur to advertise or otherwise promote their product. Volume-based rebates, supported by vendor agreements, are estimated throughout the year and reduce the cost of inventories and cost of goods sold during the year. This estimate is regularly monitored and adjusted for sales activity and current or anticipated changes in purchase levels. We also receive consideration from vendors through a variety of other programs, including markdown reimbursements, vendor compliance charges, and defective merchandise credits. If the payment is a reimbursement for costs incurred, it is recognized as an offset against those related costs; otherwise, it is treated as a reduction to the cost of merchandise. Markdown reimbursements related to merchandise that has been sold are negotiated by our merchandising teams and are credited directly to cost of goods sold in the period received. If vendor funds are received prior to merchandise being sold, they are recorded as a reduction of merchandise cost. Vendor compliance charges and defective merchandise credits reduce the cost of inventories. |
Marketing | Marketing We expense marketing costs when incurred. We participate in various marketing cooperative programs with our vendors, who, under these programs, reimburse us for certain costs incurred. |
Cost of Goods Sold | Cost of Goods Sold We include merchandise costs, store occupancy costs, logistics-related occupancy and operating costs, and ship-to-home freight in cost of goods sold. |
Stock Repurchase Program | Stock Repurchase Program On May 26, 2021, our Board of Directors (the "Board") authorized the expansion and extension of our existing Stock Repurchase Program (the "Repurchase Program") by $500.0 million to a total of $800.0 million to repurchase our common stock through February 1, 2025. The Repurchase Program's original authorization was approved in November 2015 in the amount of $300.0 million and prior to the Board's action, was scheduled to expire on January 29, 2022. The Repurchase 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 Repurchase Program, we also acquire shares of our common stock from holders of restricted stock unit awards to satisfy withholding tax requirements due at vesting. Shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements do not reduce the authorized amounts of repurchases under the Repurchase Program. The number of shares repurchased under the Repurchase Program and acquired from holders of restricted stock unit awards to satisfy tax withholding requirements were as follows: 52-Weeks Ended January 29, 2022 January 30, 2021 February 1, 2020 Common stock repurchased under the Repurchase Program 3,370,751 620,785 1,594,074 Aggregate cost of repurchases under the Repurchase Program (in thousands) $ 267,826 $ 17,615 $ 35,459 Shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements 46,095 42,449 29,432 Tax withholding requirements from holders of restricted stock unit awards (in thousands) $ 3,257 $ 897 $ 555 Historically, under all stock repurchase authorizations and including shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements, we have repurchased a total of 26.3 million shares of our common stock at an approximate cost of $933.9 million as of January 29, 2022 and had approximately $368.5 million remaining under the Repurchase Program authorization. Shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements do not reduce the authorization. Subsequent to January 29, 2022, we repurchased 0.3 million shares of our common stock as of March 22, 2022 at a cost of $12.6 million, including 8,277 shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements of $0.4 million. |
Dividends | Dividends On August 25, 2021, the Board instituted a quarterly cash dividend program with the first cash dividend payment made on September 9, 2021. During the fiscal year ended January 29, 2022, we paid cash dividends of $10.9 million under three declarations at $0.25 per share of common stock outstanding as of the record date. While we currently pay a quarterly dividend of $0.25 per share and expect to pay comparable cash dividends in the future, the declaration of dividends and the establishment of the per share amount, record dates and payment dates for any such future dividends are subject to the final determination of our Board of Directors and will be dependent upon our financial condition, results of operations, capital requirements and such other factors as our Board of Directors deems relevant. There can be no assurance that we will continue to declare dividends in any particular amounts or at all, and changes in our dividend policy could adversely affect the market price of our common stock. Subsequent to January 29, 2022, the Board declared a cash dividend of $0.25 per common share, payable on March 29, 2022, to stockholders of record at the close of business on March 17, 2022. The estimated payment is expected to be $3.3 million. |
Cash and Cash Equivalents | Cash and Cash EquivalentsWe consider all short-term, highly liquid investments with original maturities of 90 days or less, including commercial paper and money market funds, to be cash equivalents. Amounts due from third-party credit card processors for the settlement of debit and credit card transactions are included as cash equivalents as they are generally collected within three |
Inventories | Inventories Inventories are valued using the lower of weighted average cost or net realizable value method. Items are removed from inventory using the weighted average cost method. Lower of Cost and Net Realizable Value: We regularly review inventories to determine if the carrying value exceeds net realizable value, and we record an accrual to reduce the carrying value to net realizable value as necessary. We account for obsolescence as part of our lower of cost and net realizable value accrual based on historical trends and specific identification. As of January 29, 2022 and January 30, 2021, the accrual was $5.3 million and $6.2 million, respectively. A determination of net realizable value requires significant judgment. Shrink Reserves: We accrue for inventory shrinkage based on the actual historical results of our physical inventory counts. These estimates are compared to actual results as physical inventory counts are performed and reconciled to the general ledger. Physical inventory counts are performed on a cyclical basis. As of January 29, 2022 and January 30, 2021, the accrual was $0.9 million and $1.9 million, respectively. Inventory Purchase Concentration: Our business is dependent to a significant degree upon close relationships with our vendors. Our largest vendor, Nike, represented 61.0%, 65.0%, and 67.7% of our purchases for Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. Our second largest vendor, adidas, represented 6.9%, 6.6%, and 7.2% of our purchases for Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. |
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 6, Leases). Property and equipment consists of the following (in thousands): January 29, January 30, Land $ 7,277 $ 7,277 Buildings 22,247 21,505 Equipment 119,505 104,431 Furniture and fixtures 59,137 42,448 Leasehold improvements 137,279 109,220 Construction in progress 4,086 1,470 Total property and equipment 349,531 286,351 Less: accumulated depreciation and amortization 203,564 179,192 Total property and equipment, net $ 145,967 $ 107,159 Depreciation on property and equipment utilizes the straight-line method generally over the following estimated service lives: Buildings 39 years Leasehold improvements 3 – 10 years Furniture and fixtures 7 years Equipment 3 – 7 years In the case of leasehold improvements, we calculate depreciation using the shorter of the term of the underlying leases or the estimated economic lives of the improvements. The term of the lease includes option periods when exercise of the option is reasonably certain. We continually reassess the remaining useful life of leasehold improvements in light of store closing plans. Construction in progress has historically been comprised primarily of property and equipment related to unopened stores and amounts associated with technology upgrades. Maintenance and repairs are charged to expense as incurred. The cost and accumulated depreciation of assets sold, retired or otherwise disposed of are removed from property and equipment and the related gain or loss is credited or charged to net income, net of proceeds received. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets Goodwill and the City Gear tradename are indefinite-lived intangible 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 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. |
Long-Lived Assets | Long-Lived Assets Long-lived assets, including lease assets, are evaluated for impairment whenever events or circumstances indicate that the carrying value may not be recoverable. The evaluation for long-lived assets is performed at the lowest level of identifiable cash flows, which is generally the individual store level. When evaluating long-lived assets for impairment, we first compare the carrying value of the asset or asset group to its estimated undiscounted future cash flows. Our estimate of undiscounted future cash flows is based on historical operations and predictions of future profitability. Significant assumptions are required to estimate cash inflows and outflows directly resulting from the use of assets in operations, including margin on net sales, occupancy costs, payroll and related costs, and other costs to operate a store. If the estimated future cash flows are less than the carrying value of the related asset, we calculate an impairment loss. The impairment loss calculation compares the carrying value of the related asset or asset group to its estimated fair value, which may be based on an estimated future cash flow model, quoted market value, or other valuation technique, as appropriate. We recognize an impairment loss if the amount of the asset’s carrying value exceeds the asset’s estimated fair value. If we recognize an impairment loss, the adjusted carrying amount of the asset becomes its new cost basis. For depreciable long-lived assets, the new cost basis will be depreciated (amortized) over the remaining estimated useful life of that asset. Impairment loss calculations require significant judgment to estimate future cash flows and asset fair values. |
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. The net deferred revenue liability for gift cards, customer orders, and layaways at January 29, 2022 and January 30, 2021 was $9.6 million and $8.8 million, respectively, recognized in accounts payable on our 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. In Fiscal 2022, Fiscal 2021 and Fiscal 2020, gift card breakage income was immaterial for all years. During the fiscal years ended January 29, 2022, January 30, 2021, and February 1, 2020, $1.4 million, $1.2 million and $1.7 million of gift card deferred revenue from prior periods was realized, respectively. 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 consolidated balance sheets and was $3.7 million and $3.4 million at January 29, 2022 and January 30, 2021, 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 accounts payable on our consolidated balance sheets. The return |
Store Opening and Closing Costs | Store Opening and Closing Costs New store opening costs, including pre-opening costs, are charged to expense as incurred. Store opening costs primarily include payroll expenses, training costs and straight-line rent expenses. All pre-opening costs are included in store operating, selling and administrative expenses as a part of operating expenses. |
Recent Accounting Pronouncements | Standards that were adopted In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. We adopted ASU 2016-13, Topic 326, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , as of February 2, 2020. ASU 2016-13 revised the measurement of credit losses for financial assets measured at amortized cost from an incurred loss methodology to an expected loss methodology. Historical experience, current economic conditions and reasonable supportable forecasts are considered in establishing an allowance for credit losses which is shown on the consolidated balance sheet in receivables, net. The adoption of ASU 2016-13 did not have a material impact on our consolidated financial statements. Standards that are not yet adopted We continuously monitor and review all current accounting pronouncements and standards from the FASB for applicability to our operations. As of January 29, 2022, there were no other new pronouncements or interpretations that had or were expected to have a significant impact on our operations. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Critical and Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Marketing Expense | The following table presents the components of our marketing expense (in thousands): Fiscal Year Ended January 29, January 30, February 1, Gross marketing costs $ 32,964 $ 23,576 $ 18,408 Marketing reimbursements (4,525) (1,524) (2,938) Net marketing costs $ 28,439 $ 22,052 $ 15,470 |
Schedule of Shares Repurchased | The number of shares repurchased under the Repurchase Program and acquired from holders of restricted stock unit awards to satisfy tax withholding requirements were as follows: 52-Weeks Ended January 29, 2022 January 30, 2021 February 1, 2020 Common stock repurchased under the Repurchase Program 3,370,751 620,785 1,594,074 Aggregate cost of repurchases under the Repurchase Program (in thousands) $ 267,826 $ 17,615 $ 35,459 Shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements 46,095 42,449 29,432 Tax withholding requirements from holders of restricted stock unit awards (in thousands) $ 3,257 $ 897 $ 555 |
Schedule of Property and Equipment | Property and equipment consists of the following (in thousands): January 29, January 30, Land $ 7,277 $ 7,277 Buildings 22,247 21,505 Equipment 119,505 104,431 Furniture and fixtures 59,137 42,448 Leasehold improvements 137,279 109,220 Construction in progress 4,086 1,470 Total property and equipment 349,531 286,351 Less: accumulated depreciation and amortization 203,564 179,192 Total property and equipment, net $ 145,967 $ 107,159 |
Schedule of Estimated Useful Lives of Depreciable Assets | Depreciation on property and equipment utilizes the straight-line method generally over the following estimated service lives: Buildings 39 years Leasehold improvements 3 – 10 years Furniture and fixtures 7 years Equipment 3 – 7 years |
Schedule of Goodwill | A reconciliation of goodwill is as follows (in thousands): Goodwill balance at February 1, 2020 $ 19,661 Impairment losses (19,661) Goodwill balance at January 30, 2021 $ — |
Schedule of Indefinite-Lived Intangible Assets | A reconciliation of the tradename intangible for Fiscal 2021 is as follows (in thousands): Tradename intangible asset balance at February 1, 2020 $ 32,400 Impairment losses (8,900) Tradename intangible asset balance at January 30, 2021 $ 23,500 |
Schedule of Disaggregation of Revenue | Revenues disaggregated by major product categories are as follows (in thousands): Fiscal 2022 Fiscal 2021 Fiscal 2020 Footwear $ 1,044,191 $ 911,789 $ 735,613 Apparel 483,236 384,431 307,600 Equipment 163,757 123,437 141,021 $ 1,691,184 $ 1,419,657 $ 1,184,234 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The compensation cost for these plans was as follows (in thousands): Fiscal Year Ended January 29, January 30, February 1, Stock-based compensation expense by type: Stock options $ 174 $ 90 $ 92 Restricted stock units 5,111 3,495 2,370 Employee stock purchases 199 120 97 Director deferred compensation 56 94 94 Total stock-based compensation expense 5,540 3,799 2,653 Income tax benefit recognized 1,316 882 622 Stock-based compensation expense, net of income tax $ 4,224 $ 2,917 $ 2,031 |
Share-based Compensation, Stock Options, Activity | Activity for our option plans during Fiscal 2022 was as follows: Number of Weighted Weighted Aggregate Options outstanding at January 30, 2021 227,258 $ 37.15 4.39 $ 4,407 Granted 4,384 76.04 Exercised (65,716) 29.45 Forfeited, cancelled or expired — — Options outstanding at January 29, 2022 165,926 $ 41.28 3.66 $ 3,106 Exercisable at January 29, 2022 165,926 $ 41.28 3.66 $ 3,106 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following table summarizes the restricted stock unit awards activity under all our plans during Fiscal 2022: RSUs PSUs Totals Number of Weighted Number of Weighted Number of Weighted Nonvested at January 30, 2021 655,031 $ 17.98 19,060 $ 19.56 674,091 $ 18.02 Granted 62,031 76.28 22,492 76.04 84,523 76.22 PSU adjustment (1) — — 3,900 22.55 3,900 22.55 Vested (140,075) 22.23 (10,335) 22.55 (150,410) 22.25 Forfeited, cancelled or expired (21,489) 21.43 — — (21,489) 21.54 Nonvested at January 29, 2022 555,498 $ 23.28 35,117 $ 55.19 590,615 $ 25.18 (1) PSU adjustment represents the net RSUs awarded to our NEOs above or below their target grants resulting from the achievement of performance goals above or below the performance targets established at grant. One grant goal was achieved at 200% of its target based on Fiscal 2019 through Fiscal 2021 financial results. |
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity | Our employee purchases of common stock and the average price per share through the ESPP were as follows: Fiscal Year Ended Shares Average Price January 29, 2022 14,447 $ 50.01 January 30, 2021 36,059 $ 11.99 February 1, 2020 26,116 $ 15.02 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The assumptions used in the option pricing model were as follows: Fiscal Year Ended January 29, January 30, February 1, Weighted average fair value at date of grant $14.33 $4.18 $4.18 Expected life (years) 0.25 0.25 0.25 Expected volatility 49.2% - 50.4% 41.4% - 50.2% 34.3% - 36.5% Risk-free interest rate 0.11% - 0.33% 0.20% - 3.60% 4.24% - 5.73% Dividend yield 1.12% - 1.41% None None |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share in thousands: Fiscal Year Ended January 29, January 30, February 1, Net income $ 174,313 $ 74,266 $ 27,344 Weighted average number of common shares outstanding 14,993 16,547 17,746 Dilutive stock options 130 77 11 Dilutive restricted stock units 459 413 200 Weighted average number of common shares outstanding and dilutive shares 15,582 17,037 17,957 Basic earnings per share $ 11.63 $ 4.49 $ 1.54 Diluted earnings per share $ 11.19 $ 4.36 $ 1.52 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Leases [Abstract] | |
Schedule of Lease Cost | Office equipment and other transportation equipment operating lease cost is included in store operating, selling and administrative expenses in the consolidated statements of operations. January 29, January 30, February 1, Operating lease cost $ 68,359 $ 67,030 $ 71,096 Finance lease cost: Amortization of assets 849 913 943 Interest on lease liabilities 136 179 223 Variable lease cost (1) 18,379 13,328 11,757 $ 87,723 $ 81,450 $ 84,019 (1) Includes rent based on a percent of sales, common area maintenance, insurance and property tax. |
Schedule of Supplemental Information Related to Leases | The following table provides supplemental balance sheet information related to leases: January 29, January 30, Weighted average remaining lease term (in years): Operating leases 5 5 Finance leases 3 4 Weighted average discount rate: Operating leases 3.0 % 3.5 % Finance leases 5.1 % 5.5 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities (in thousands): January 29, 2022 Operating Finance Total Fiscal 2023 $ 75,809 $ 1,060 $ 76,869 Fiscal 2024 66,530 992 $ 67,522 Fiscal 2025 53,542 282 $ 53,824 Fiscal 2026 39,749 201 $ 39,950 Fiscal 2027 28,173 — $ 28,173 Thereafter 39,058 — $ 39,058 Total minimum lease payments 302,861 2,535 305,396 Less amount representing interest 21,991 133 22,124 $ 280,870 $ 2,402 $ 283,272 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | A summary of the components of the provision (benefit) for income taxes is as follows (in thousands): Fiscal Year Ended January 29, January 30, February 1, Federal: Current $ 37,013 $ 23,651 $ 11,724 Deferred 7,142 (4,191) (4,265) 44,155 19,460 7,459 State: Current 9,128 5,580 1,975 Deferred 296 (1,354) (450) 9,424 4,226 1,525 Provision for income taxes $ 53,579 $ 23,686 $ 8,984 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory federal income tax rate to the effective tax rate as a percentage of income before provision for income taxes follows: Fiscal Year Ended January 29, January 30, February 1, Tax provision computed at the federal statutory rate 21.00 % 21.00 % 21.00 % Effect of state income taxes, net of federal benefits 3.50 3.47 3.60 Federal income tax credits (0.40) (0.70) (1.99) Executive compensation limitations 0.52 0.09 1.47 Equity compensation tax (excess) deficiencies (0.97) 0.17 1.71 Other, net (0.14) 0.15 (1.06) 23.51 % 24.18 % 24.73 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes on the consolidated balance sheets result from temporary differences between the amount of assets and liabilities recognized for financial reporting and income tax purposes. The components of the deferred income taxes, net, are as follows (in thousands): January 29, January 30, Rent $ 72,452 $ 64,369 Inventories 2,795 2,362 Accruals 8,175 11,546 Stock-based compensation 2,704 2,398 Other 85 152 Total deferred tax assets 86,211 80,827 Rent (66,056) (57,776) Accumulated depreciation and amortization (10,440) (6,226) Prepaid expenses (2,336) (1,747) State taxes (192) (453) Total deferred tax liabilities (79,024) (66,202) Deferred income taxes, net $ 7,187 $ 14,625 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the unrecognized tax benefit, excluding estimated interest and penalties, under ASC Subtopic 740-10 follows (in thousands): January 29, January 30, February 1, Unrecognized tax benefits - beginning of year $ 616 $ 818 $ 1,245 Gross increases - tax positions in prior period — 3 — Gross decreases - tax positions in prior period (51) — (234) Gross increases - tax positions in current period — — — Settlements — — — Lapse of statute of limitations (110) (205) (193) Unrecognized tax benefits - end of year $ 455 $ 616 $ 818 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets Measured on Recurring Basis | The table below segregates all financial assets and 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): January 29, 2022 January 30, 2021 Level I Level II Level III Level I Level II Level III Short-term investments $ 129 $ — $ — $ 219 $ — $ — Long-term investments 2,352 — — 2,107 — — Short-term contingent earnout — — — — — 15,000 Total $ 2,481 $ — $ — $ 2,326 $ — $ 15,000 |
Schedule of Reconciliation of Earnout Balance | The table below are reconciliations of the contingent earnout balance for each period presented (in thousands): January 29, 2022 January 30,2021 Short-term Long-term Short-term Long-term Beginning balance $ 15,000 $ — $ 9,958 $ 11,099 Change in valuation — — 3,943 — Payment of year one earnout (15,000) — (10,000) — Reclassification from long-term, net — — 11,099 (11,099) Ending balance $ — $ — $ 15,000 $ — |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Critical and Significant Accounting Policies - Additional Information (Details) | Mar. 18, 2022USD ($)shares | Mar. 25, 2022USD ($)$ / sharesshares | May 02, 2020USD ($) | Jan. 29, 2022USD ($)storesegmentdeclaration$ / sharesshares | Jan. 30, 2021USD ($)shares | Feb. 01, 2020USD ($)shares | Jan. 29, 2022USD ($)storeshares | May 26, 2021USD ($) | Nov. 30, 2015USD ($) |
Disaggregation of Revenue [Line Items] | |||||||||
Number of stores | store | 1,100 | 1,100 | |||||||
Number of reportable segments | segment | 1 | ||||||||
Stock repurchased (in shares) | shares | 26,300,000 | ||||||||
Aggregate cost of repurchases under the Repurchase Program (in thousands) | $ 267,826,000 | $ 16,717,000 | $ 34,904,000 | $ 933,900,000 | |||||
Remaining amount available under stock repurchase program | 368,500,000 | 368,500,000 | |||||||
Payment of cash dividends | $ 10,939,000 | 0 | 0 | ||||||
Number of dividend declarations | declaration | 3 | ||||||||
Dividends paid (in dollars per share) | $ / shares | $ 0.25 | ||||||||
Declaration of dividends (in dollars per share) | $ / shares | $ 0.25 | ||||||||
Days to collect debit and credit card transactions | 3 days | ||||||||
Credit and debit card receivables | $ 6,600,000 | 6,900,000 | 6,600,000 | ||||||
Inventory valuation reserves | 5,300,000 | 6,200,000 | 5,300,000 | ||||||
Accrual for inventory shrinkage | 900,000 | 1,900,000 | 900,000 | ||||||
Goodwill impairment | $ 19,700,000 | 0 | 19,661,000 | 0 | |||||
Intangible asset impairment | $ 8,900,000 | 0 | 0 | ||||||
Contract with customer, liability, current | 3,700,000 | 3,400,000 | 3,700,000 | ||||||
Gift Cards | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Liability, gift card revenue | 9,600,000 | 8,800,000 | $ 9,600,000 | ||||||
Revenue recognized from contract liability | $ 1,400,000 | $ 1,200,000 | $ 1,700,000 | ||||||
Subsequent Event | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Stock repurchased (in shares) | shares | 300,000 | ||||||||
Payments for repurchase of common stock | $ 12,600,000 | ||||||||
Settlement of net share equity awards (in shares) | shares | 8,277 | ||||||||
Adjustment for awards to satisfy tax withholding requirement | $ 400,000 | ||||||||
Declaration of dividends (in dollars per share) | $ / shares | $ 0.25 | ||||||||
Dividends payable | $ 3,300,000 | ||||||||
Cost of Goods, Total | Supplier Concentration Risk | Nike | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Percentage of purchases from supplier | 61.00% | 65.00% | 67.70% | ||||||
Cost of Goods, Total | Supplier Concentration Risk | Adidas | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Percentage of purchases from supplier | 6.90% | 6.60% | 7.20% | ||||||
Stock Repurchase Program | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Additional authorized amount | $ 500,000,000 | ||||||||
Authorized repurchase amount | $ 800,000,000 | $ 300,000,000 | |||||||
Aggregate cost of repurchases under the Repurchase Program (in thousands) | $ 267,826,000 | $ 17,615,000 | $ 35,459,000 | ||||||
Settlement of net share equity awards (in shares) | shares | 46,095 | 42,449 | 29,432 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Critical and Significant Accounting Policies - Marketing Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Gross marketing costs | $ 32,964 | $ 23,576 | $ 18,408 |
Marketing reimbursements | (4,525) | (1,524) | (2,938) |
Net marketing costs | $ 28,439 | $ 22,052 | $ 15,470 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Critical and Significant Accounting Policies - Schedule of Shares Repurchased (Details) - USD ($) $ in Thousands | 12 Months Ended | 75 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | Jan. 29, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Aggregate cost of repurchases under the Repurchase Program (in thousands) | $ 267,826 | $ 16,717 | $ 34,904 | $ 933,900 |
Stock Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock repurchased under the Repurchase Program (in shares) | 3,370,751 | 620,785 | 1,594,074 | |
Aggregate cost of repurchases under the Repurchase Program (in thousands) | $ 267,826 | $ 17,615 | $ 35,459 | |
Shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements (in shares) | 46,095 | 42,449 | 29,432 | |
Tax withholding requirements from holders of restricted stock unit awards (in thousands) | $ 3,257 | $ 897 | $ 555 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Critical and Significant Accounting Policies - Components of Property and Equipment (Details) - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 349,531 | $ 286,351 |
Less: accumulated depreciation and amortization | 203,564 | 179,192 |
Total property and equipment, net | 145,967 | 107,159 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 7,277 | 7,277 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 22,247 | 21,505 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 119,505 | 104,431 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 59,137 | 42,448 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 137,279 | 109,220 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 4,086 | $ 1,470 |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Critical and Significant Accounting Policies - PP&E Service Lives (Details) | 12 Months Ended |
Jan. 29, 2022 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful life | 39 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
Basis of Presentation and Sum_9
Basis of Presentation and Summary of Critical and Significant Accounting Policies - Reconciliation of Goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
May 02, 2020 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Goodwill [Roll Forward] | ||||
Goodwill balance at February 1, 2020 | $ 19,661,000 | $ 0 | $ 19,661,000 | |
Goodwill impairment | $ (19,700,000) | $ 0 | (19,661,000) | $ 0 |
Goodwill balance at January 30, 2021 | $ 0 | $ 19,661,000 |
Basis of Presentation and Su_10
Basis of Presentation and Summary of Critical and Significant Accounting Policies - Reconciliation of Intangible Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
May 02, 2020 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Impairment losses | $ (8,900,000) | $ 0 | $ 0 | |
Trade Names | ||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Tradename intangible asset balance at February 1, 2020 | $ 32,400,000 | $ 23,500,000 | $ 32,400,000 | |
Impairment losses | (8,900,000) | |||
Tradename intangible asset balance at January 30, 2021 | $ 23,500,000 | $ 32,400,000 |
Basis of Presentation and Su_11
Basis of Presentation and Summary of Critical and Significant Accounting Policies - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 1,691,184 | $ 1,419,657 | $ 1,184,234 |
Footwear | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,044,191 | 911,789 | 735,613 |
Apparel | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 483,236 | 384,431 | 307,600 |
Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 163,757 | $ 123,437 | $ 141,021 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) | 12 Months Ended | ||
Jan. 29, 2022USD ($)grantdirectorplan$ / sharesshares | Jan. 30, 2021USD ($)$ / sharesshares | Feb. 01, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock-based compensation plans | plan | 4 | ||
Amount capitalized | $ | $ 0 | $ 0 | $ 0 |
Income tax effects allocated directly to equity, other | $ | $ 3,200,000 | $ 1,000,000 | $ 600,000 |
Grants in period, weighted average grant date fair value (in dollars per share) | $ / shares | $ 76.22 | $ 12.42 | $ 18.68 |
Grants in period (in shares) | 84,523 | ||
Vested in period (in shares) | 150,410 | ||
Stock-based compensation expense related to employee stock purchase plans | $ | $ 199,000 | $ 120,000 | $ 97,000 |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of option granted (in shares) | grant | 1 | ||
Granted (in shares) | 4,384 | ||
Granted (in dollars per share) | $ / shares | $ 76.04 | ||
Weighted average fair value at grant date (in dollars per share) | $ / shares | $ 39.73 | $ 3.33 | $ 5.46 |
Expected life | 4 years 7 months 17 days | ||
Expected volatility rate | 64.75% | ||
Risk free interest rate | 0.77% | ||
Dividend yield | 0.00% | ||
Intrinsic value of stock options exercised | $ | $ 2,700,000 | $ 800,000 | $ 9,600 |
Proceeds from stock options exercised | $ | 4,700,000 | $ 1,800,000 | $ 100,000 |
Compensation cost not yet recognized | $ | 0 | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost not yet recognized | $ | $ 7,000,000 | ||
Grants in period, weighted average grant date fair value (in dollars per share) | $ / shares | $ 76.28 | ||
Grants in period (in shares) | 62,031 | 337,749 | 296,583 |
Vested in period (in shares) | 140,075 | ||
Intrinsic value of vested RSUs | $ | $ 10,500,000 | ||
Intrinsic value of nonvested RSUs | $ | $ 35,200,000 | $ 38,100,000 | $ 14,500,000 |
Period for recognition | 2 years | ||
Service-based Restricted Stock Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 2 years | ||
Service-based Restricted Stock Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period, weighted average grant date fair value (in dollars per share) | $ / shares | $ 76.04 | ||
Grants in period (in shares) | 22,492 | ||
Vested in period (in shares) | 10,335 | ||
PSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Deferred Compensation, Share-based Payments | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued to individual (in shares) | 729 | 4,368 | 4,174 |
Number of directors elected | director | 1 | ||
Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 2,500,000 | ||
Number of shares available for grant (in shares) | 1,510,547 | ||
Equity Incentive Plan | Employee Stock Option | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Expiration period | 8 years | ||
Equity Incentive Plan | Employee Stock Option | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
Expiration period | 10 years | ||
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 300,000 | ||
Number of shares available for grant (in shares) | 152,096 | ||
Discount from market price, offering date | 85.00% | ||
Employee Stock Purchase Plan | Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Discount from market price, offering date | 85.00% | ||
Weighted average fair value at grant date (in dollars per share) | $ / shares | $ 14.33 | $ 4.18 | $ 4.18 |
Expected life | 3 months | 3 months | 3 months |
Dividend yield | 0.00% | 0.00% | |
Employee Stock Purchase Plan | Employee Stock | Store Operating, Selling and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense related to employee stock purchase plans | $ | $ 200,000 | $ 100,000 | $ 100,000 |
Employee Stock Purchase Plan | Employee Stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 1.12% | ||
Employee Stock Purchase Plan | Employee Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 1.41% | ||
Director Deferred Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 150,000 | ||
Number of shares available for grant (in shares) | 121,194 | ||
Director Deferred Compensation Plan | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Non-Employee Director Equity Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 500,000 | ||
Number of shares available for grant (in shares) | 104,828 | ||
Non-Employee Director Equity Plan | Board of Directors Chairman | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, vested in period, fair value | $ | $ 135,000 | ||
Non-Employee Director Equity Plan | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, vested in period, fair value | $ | 75,000 | ||
Non-Employee Director Equity Plan | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, vested in period, fair value | $ | $ 110,000 |
Stock-based Compensation - Comp
Stock-based Compensation - Components of Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Share-based Payment Arrangement [Abstract] | |||
Stock options | $ 174 | $ 90 | $ 92 |
Restricted stock units | 5,111 | 3,495 | 2,370 |
Employee stock purchases | 199 | 120 | 97 |
Director deferred compensation | 56 | 94 | 94 |
Total stock-based compensation expense | 5,540 | 3,799 | 2,653 |
Income tax benefit recognized | 1,316 | 882 | 622 |
Stock-based compensation expense, net of income tax | $ 4,224 | $ 2,917 | $ 2,031 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - Employee Stock Option - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 29, 2022 | Jan. 30, 2021 | |
Number of Shares | ||
Outstanding at beginning of period (in shares) | 227,258 | |
Granted (in shares) | 4,384 | |
Exercised (in shares) | (65,716) | |
Forfeited, cancelled or expired (in shares) | 0 | |
Outstanding at end of period (in shares) | 165,926 | 227,258 |
Exercisable (in shares) | 165,926 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (in dollars per share) | $ 37.15 | |
Granted (in dollars per share) | 76.04 | |
Exercised (in dollars per share) | 29.45 | |
Forfeited, cancelled or expired (in dollars per share) | 0 | |
Outstanding at end of period (in dollars per share) | 41.28 | $ 37.15 |
Exercisable (in dollars per share) | $ 41.28 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Outstanding, weighted average remaining contractual term | 3 years 7 months 28 days | 4 years 4 months 20 days |
Exercisable, weighted average remaining contractual term | 3 years 7 months 28 days | |
Outstanding, aggregate intrinsic value | $ 3,106 | $ 4,407 |
Exercisable, aggregate intrinsic value | $ 3,106 |
Stock-Based Compensation - Acti
Stock-Based Compensation - Activity in Restricted Stock and Performance-Based Units (Details) | 12 Months Ended | ||
Jan. 29, 2022grant$ / sharesshares | Jan. 30, 2021$ / sharesshares | Feb. 01, 2020$ / sharesshares | |
Number of Awards | |||
Outstanding at beginning of period (in shares) | shares | 674,091 | ||
Grants in period (in shares) | shares | 84,523 | ||
PSU Adjustment (in shares) | shares | 3,900 | ||
Vested (in shares) | shares | (150,410) | ||
Forfeited, cancelled or expired (in shares) | shares | (21,489) | ||
Outstanding at end of period (in shares) | shares | 590,615 | 674,091 | |
Weighted Average Grant-Date Fair Value | |||
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 18.02 | ||
Grants in period, weighted average grant date fair value (in dollars per share) | $ / shares | 76.22 | $ 12.42 | $ 18.68 |
PSU Adjustment (in dollars per share) | $ / shares | 22.55 | ||
Vested, weighted average grant-date fair value (in dollars per share) | $ / shares | 22.25 | ||
Forfeited, cancelled or expired, weighted average grant-date fair value (in dollars per share) | $ / shares | 21.54 | ||
Outstanding at end of period (in dollars per share) | $ / shares | $ 25.18 | $ 18.02 | |
RSUs | |||
Number of Awards | |||
Outstanding at beginning of period (in shares) | shares | 655,031 | ||
Grants in period (in shares) | shares | 62,031 | 337,749 | 296,583 |
PSU Adjustment (in shares) | shares | 0 | ||
Vested (in shares) | shares | (140,075) | ||
Forfeited, cancelled or expired (in shares) | shares | (21,489) | ||
Outstanding at end of period (in shares) | shares | 555,498 | 655,031 | |
Weighted Average Grant-Date Fair Value | |||
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 17.98 | ||
Grants in period, weighted average grant date fair value (in dollars per share) | $ / shares | 76.28 | ||
PSU Adjustment (in dollars per share) | $ / shares | 0 | ||
Vested, weighted average grant-date fair value (in dollars per share) | $ / shares | 22.23 | ||
Forfeited, cancelled or expired, weighted average grant-date fair value (in dollars per share) | $ / shares | 21.43 | ||
Outstanding at end of period (in dollars per share) | $ / shares | $ 23.28 | $ 17.98 | |
PSUs | |||
Number of Awards | |||
Outstanding at beginning of period (in shares) | shares | 19,060 | ||
Grants in period (in shares) | shares | 22,492 | ||
PSU Adjustment (in shares) | shares | 3,900 | ||
Vested (in shares) | shares | (10,335) | ||
Forfeited, cancelled or expired (in shares) | shares | 0 | ||
Outstanding at end of period (in shares) | shares | 35,117 | 19,060 | |
Weighted Average Grant-Date Fair Value | |||
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 19.56 | ||
Grants in period, weighted average grant date fair value (in dollars per share) | $ / shares | 76.04 | ||
PSU Adjustment (in dollars per share) | $ / shares | 22.55 | ||
Vested, weighted average grant-date fair value (in dollars per share) | $ / shares | 22.55 | ||
Forfeited, cancelled or expired, weighted average grant-date fair value (in dollars per share) | $ / shares | 0 | ||
Outstanding at end of period (in dollars per share) | $ / shares | $ 55.19 | $ 19.56 | |
Number of grant goal (in shares) | grant | 1 | ||
Percentage of grant goal | 200.00% |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan Shares Purchased (Details) - Employee Stock - Employee Stock Purchase Plan - $ / shares | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares purchased (in shares) | 14,447 | 36,059 | 26,116 |
Average price per share (in dollars per share) | $ 50.01 | $ 11.99 | $ 15.02 |
Stock-Based Compensation - Em_2
Stock-Based Compensation - Employee Stock Purchase Plan Assumption (Details) - Employee Stock - Employee Stock Purchase Plan - $ / shares | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value at grant date (in dollars per share) | $ 14.33 | $ 4.18 | $ 4.18 |
Expected life | 3 months | 3 months | 3 months |
Expected volatility, minimum | 49.20% | 41.40% | 34.30% |
Expected volatility, maximum | 50.40% | 50.20% | 36.50% |
Risk-free interest rate, minimum | 0.11% | 0.20% | 4.24% |
Risk-free interest rate, maximum | 0.33% | 3.60% | 5.73% |
Dividend yield | 0.00% | 0.00% | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 1.12% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 1.41% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Earnings Per Share, Basic and Diluted [Abstract] | |||
Net income | $ 174,313 | $ 74,266 | $ 27,344 |
Weighted average number of common shares outstanding (in shares) | 14,993,000 | 16,547,000 | 17,746,000 |
Weighted average number of common shares outstanding and dilutive shares (in shares) | 15,582,000 | 17,037,000 | 17,957,000 |
Basic earnings per share (in dollars per share) | $ 11.63 | $ 4.49 | $ 1.54 |
Diluted earnings per share (in dollars per share) | $ 11.19 | $ 4.36 | $ 1.52 |
Stock options | |||
Earnings Per Share, Basic and Diluted [Abstract] | |||
Dilutive equity awards (in shares) | 130,000 | 77,000 | 11,000 |
Antidilutive securities excluded in computation of earnings per share (in shares) | 0 | 95,724 | 148,821 |
RSUs | |||
Earnings Per Share, Basic and Diluted [Abstract] | |||
Dilutive equity awards (in shares) | 459,000 | 413,000 | 200,000 |
Stock Compensation Plan | |||
Earnings Per Share, Basic and Diluted [Abstract] | |||
Antidilutive securities excluded in computation of earnings per share (in shares) | 55,084 | ||
Incremental common shares (in shares) | 20,757 |
Debt (Details)
Debt (Details) | Jul. 09, 2021USD ($) | Apr. 16, 2020USD ($) | Jan. 29, 2022USD ($)day | Jan. 30, 2021USD ($)day | Feb. 01, 2020USD ($) | Oct. 31, 2018USD ($) |
Line of Credit Facility [Abstract] | ||||||
Proceeds under credit facilities | $ 38,259,000 | $ 117,535,000 | $ 81,780,000 | |||
Number of days where borrowings incurred against facilities | day | 21 | 97 | ||||
Average outstanding amount | $ 2,000,000 | $ 43,300,000 | ||||
Maximum amount outstanding during period | $ 18,700,000 | $ 50,000,000 | ||||
Interest rate during period | 1.35% | 3.45% | ||||
Remaining borrowing capacity | $ 100,000,000 | |||||
2021 Credit Facility | Unsecured Debt | ||||||
Line of Credit Facility [Abstract] | ||||||
Maximum borrowing capacity | $ 100,000,000 | |||||
Advance limitation, percentage | 55.00% | |||||
Leverage ratio | 3.5 | |||||
Fixed coverage charge | 1.2 | |||||
2021 Credit Facility | Unsecured Debt | Minimum | ||||||
Line of Credit Facility [Abstract] | ||||||
Annual commitment fee | 15 | |||||
2021 Credit Facility | Unsecured Debt | Maximum | ||||||
Line of Credit Facility [Abstract] | ||||||
Annual commitment fee | 20 | |||||
2021 Credit Facility | London Interbank Offered Rate (LIBOR) | Unsecured Debt | Minimum | ||||||
Line of Credit Facility [Abstract] | ||||||
Basis spread on variable rate | 1.00% | |||||
2021 Credit Facility | London Interbank Offered Rate (LIBOR) | Unsecured Debt | Maximum | ||||||
Line of Credit Facility [Abstract] | ||||||
Basis spread on variable rate | 1.80% | |||||
Bank of America LOC | ||||||
Line of Credit Facility [Abstract] | ||||||
Maximum borrowing capacity | $ 50,000,000 | |||||
Amended Credit Facility | ||||||
Line of Credit Facility [Abstract] | ||||||
Maximum borrowing capacity | $ 75,000,000 | |||||
Proceeds under credit facilities | 50,000,000 | |||||
Bank of America and Regions LOCs | ||||||
Line of Credit Facility [Abstract] | ||||||
Proceeds under credit facilities | $ 50,000,000 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Jan. 29, 2022USD ($)renewal_option | Jan. 30, 2021USD ($) | Feb. 01, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Number of renewal options | renewal_option | 1 | ||
Impairment loss | $ 2.9 | $ 8.5 | $ 1.5 |
Accumulated amortization | 2.5 | $ 1.7 | |
Lease not yet commenced, amount | $ 7.7 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 5 years | ||
Minimum | Office Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 2 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 10 years | ||
Maximum | Office Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 6 years |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 68,359 | $ 67,030 | $ 71,096 |
Finance lease cost: | |||
Amortization of assets | 849 | 913 | 943 |
Interest on lease liabilities | 136 | 179 | 223 |
Variable lease cost | 18,379 | 13,328 | 11,757 |
Lease cost | $ 87,723 | $ 81,450 | $ 84,019 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Balance Sheet Information (Details) | Jan. 29, 2022 | Jan. 30, 2021 |
Weighted average remaining lease term (in years): | ||
Operating leases | 5 years | 5 years |
Finance leases | 3 years | 4 years |
Weighted average discount rate: | ||
Operating leases | 3.00% | 3.50% |
Finance leases | 5.10% | 5.50% |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease Liabilities (Details) $ in Thousands | Jan. 29, 2022USD ($) |
Operating | |
Fiscal 2023 | $ 75,809 |
Fiscal 2024 | 66,530 |
Fiscal 2025 | 53,542 |
Fiscal 2026 | 39,749 |
Fiscal 2027 | 28,173 |
Thereafter | 39,058 |
Total minimum lease payments | 302,861 |
Less amount representing interest | 21,991 |
Operating lease obligations | 280,870 |
Finance | |
Fiscal 2023 | 1,060 |
Fiscal 2024 | 992 |
Fiscal 2025 | 282 |
Fiscal 2026 | 201 |
Fiscal 2027 | 0 |
Thereafter | 0 |
Total minimum lease payments | 2,535 |
Less amount representing interest | 133 |
Finance lease obligations | 2,402 |
Total | |
Fiscal 2023 | 76,869 |
Fiscal 2024 | 67,522 |
Fiscal 2025 | 53,824 |
Fiscal 2026 | 39,950 |
Fiscal 2027 | 28,173 |
Thereafter | 39,058 |
Total minimum lease payments | 305,396 |
Less amount representing interest | 22,124 |
Lease obligations | $ 283,272 |
Defined Contribution Benefit _2
Defined Contribution Benefit Plans (Details) - USD ($) | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Defined Contribution Benefit Plans [Line Items] | |||
Maximum annual contributions per employee, percent | 6.00% | 6.00% | 6.00% |
Employer matching contribution, percent of match | 4.50% | 4.50% | 4.50% |
First Eligible Compensation | |||
Defined Contribution Benefit Plans [Line Items] | |||
Maximum annual contributions per employee, percent | 3.00% | 3.00% | 3.00% |
Employer matching contribution, percent of match | 100.00% | 100.00% | 100.00% |
Next Eligible Compensation | |||
Defined Contribution Benefit Plans [Line Items] | |||
Maximum annual contributions per employee, percent | 3.00% | 3.00% | 3.00% |
Employer matching contribution, percent of match | 50.00% | 50.00% | 50.00% |
401(k) Plan | |||
Defined Contribution Benefit Plans [Line Items] | |||
Defined contribution plan, minimum number of years of service for plan eligibility | 1 year | ||
Contribution expense | $ 2,000,000 | $ 2,100,000 | $ 1,600,000 |
401(k) Plan | Minimum | |||
Defined Contribution Benefit Plans [Line Items] | |||
Maximum annual contributions per employee, percent | 1.00% | ||
401(k) Plan | Maximum | |||
Defined Contribution Benefit Plans [Line Items] | |||
Maximum annual contributions per employee, percent | 100.00% | ||
Supplemental 401(k) Plan | |||
Defined Contribution Benefit Plans [Line Items] | |||
Contribution expense | $ 0 | $ 0 | $ 0 |
Percentage of deferred compensation | 40.00% | ||
FSA | |||
Defined Contribution Benefit Plans [Line Items] | |||
Maximum unused amount can rollover under FSA | $ 500,000 |
Related-Party Transactions (Det
Related-Party Transactions (Details) | 12 Months Ended | |||||
Jan. 29, 2022USD ($)store | Jan. 30, 2021USD ($)earnout | Feb. 01, 2020USD ($) | Jul. 31, 2021 | Apr. 30, 2021USD ($) | Jun. 30, 2020USD ($) | |
Related Party Transaction [Line Items] | ||||||
Operating cash flows from operating leases | $ 76,400,000 | $ 77,439,000 | $ 74,992,000 | |||
Total minimum lease payments | $ 302,861,000 | |||||
City Gear | ||||||
Related Party Transaction [Line Items] | ||||||
Contingent arrangements, limit | $ 15,000,000 | $ 10,000,000 | ||||
Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Number of store leases under lease arrangement | store | 1 | |||||
Operating cash flows from operating leases | $ 100,000 | 100,000 | 100,000 | |||
Lessee, operating lease, renewal term | 5 years | |||||
Total minimum lease payments | $ 600,000 | |||||
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 | 7,900,000 | 7,200,000 | ||||
Due to related parties | 300,000 | |||||
Affiliated Entity | T.I.G. Construction | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses with related party | $ 6,700,000 | 6,100,000 | 3,800,000 | |||
Due to related parties | 600,000 | 26,000 | ||||
Affiliated Entity | Merchant's Capital | ||||||
Related Party Transaction [Line Items] | ||||||
Operating cash flows from operating leases | 0 | 100,000 | $ 300,000 | |||
Due to related parties | 0 | $ 0 | ||||
Affiliated Entity | Retail Security Gates, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses with related party | 300,000 | |||||
Due to related parties | $ 0 | |||||
Equity method investment, ownership percentage | 50.00% | |||||
Chief Executive Officer | City Gear | ||||||
Related Party Transaction [Line Items] | ||||||
Number of contingent earnouts | earnout | 2 | |||||
Contingent arrangements, limit | $ 3,400,000 | $ 2,300,000 | ||||
Earnout percent to related party | 22.80% |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Federal: | |||
Current | $ 37,013 | $ 23,651 | $ 11,724 |
Deferred | 7,142 | (4,191) | (4,265) |
Total federal | 44,155 | 19,460 | 7,459 |
State: | |||
Current | 9,128 | 5,580 | 1,975 |
Deferred | 296 | (1,354) | (450) |
Total state | 9,424 | 4,226 | 1,525 |
Provision for income taxes | $ 53,579 | $ 23,686 | $ 8,984 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Effective Tax Rate (Details) | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |||
Tax provision computed at the federal statutory rate | 21.00% | 21.00% | 21.00% |
Effect of state income taxes, net of federal benefits | 3.50% | 3.47% | 3.60% |
Federal income tax credits | (0.40%) | (0.70%) | (1.99%) |
Executive compensation limitations | 0.52% | 0.09% | 1.47% |
Equity compensation tax (excess) deficiencies | (0.97%) | 0.17% | 1.71% |
Other, net | (0.14%) | 0.15% | (1.06%) |
Tax provision at effective rate | 23.51% | 24.18% | 24.73% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Taxes (Details) - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Income Tax Disclosure [Abstract] | ||
Rent | $ 72,452 | $ 64,369 |
Inventories | 2,795 | 2,362 |
Accruals | 8,175 | 11,546 |
Stock-based compensation | 2,704 | 2,398 |
Other | 85 | 152 |
Total deferred tax assets | 86,211 | 80,827 |
Rent | (66,056) | (57,776) |
Accumulated depreciation and amortization | (10,440) | (6,226) |
Prepaid expenses | (2,336) | (1,747) |
State taxes | (192) | (453) |
Total deferred tax liabilities | (79,024) | (66,202) |
Deferred income taxes, net | $ 7,187 | $ 14,625 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits - beginning of year | $ 616 | $ 818 | $ 1,245 |
Gross increases - tax positions in prior period | 0 | 3 | 0 |
Gross decreases - tax positions in prior period | (51) | 0 | (234) |
Gross increases - tax positions in current period | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Lapse of statute of limitations | (110) | (205) | (193) |
Unrecognized tax benefits - end of year | $ 455 | $ 616 | $ 818 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax penalties and interest accrued | $ 100 | $ 100 | $ 100 |
Income tax penalties and interest expense | (18) | (28) | (19) |
Unrecognized tax benefits that would impact effective tax rate | $ 300 | $ 400 | $ 600 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Jan. 29, 2022 | Jan. 30, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued bonuses, current | $ 13 | $ 10.6 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Balance (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 129 | $ 219 |
Long-term investments | 2,352 | 2,107 |
Short-term contingent earnout | 0 | 0 |
Total | 2,481 | 2,326 |
Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Short-term contingent earnout | 0 | 0 |
Total | 0 | 0 |
Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Short-term contingent earnout | 0 | 15,000 |
Total | $ 0 | $ (15,000) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments - Contingent Earnout Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 29, 2022 | Jan. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent earnout valuation, increase (decrease) | $ 3,900 | |
Short-term | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 15,000 | 9,958 |
Change in valuation | 0 | 3,943 |
Payment of year one earnout | (15,000) | (10,000) |
Reclassification from long-term, net | 0 | 11,099 |
Ending balance | 0 | 15,000 |
Long-term | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 0 | 11,099 |
Change in valuation | 0 | 0 |
Payment of year one earnout | 0 | 0 |
Reclassification from long-term, net | 0 | (11,099) |
Ending balance | $ 0 | $ 0 |