DICK'S Sporting Goods (DKS) 10-Q 29 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Nov. 03, 2018	Nov. 23, 2018
Entity Registrant Name	DICKS SPORTING GOODS INC
Entity Central Index Key	1,089,063
Current Fiscal Year End Date	--02-02
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Nov. 3, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Entity Small Business	false
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Current Reporting Status	Yes
Common Stock
Entity Common Stock, Shares Outstanding		73,761,783
Class B Common Stock
Entity Common Stock, Shares Outstanding		24,541,123

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017
Income Statement [Abstract]
Net sales	$ 1,857,273	$ 1,944,187	$ 5,944,480	$ 5,926,350
Cost of goods sold, including occupancy and distribution costs	1,333,719	1,410,067	4,201,277	4,213,143
GROSS PROFIT	523,554	534,120	1,743,203	1,713,207
Selling, general and administrative expenses	468,691	475,899	1,434,344	1,385,506
Pre-opening expenses	1,997	8,220	6,135	28,441
INCOME FROM OPERATIONS	52,866	50,001	302,724	299,260
Interest expense	2,606	2,839	8,312	6,319
Other expense (income)	68	(10,768)	(1,233)	(28,117)
INCOME BEFORE INCOME TAXES	50,192	57,930	295,645	321,058
Provision for income taxes	12,365	21,017	78,336	113,564
NET INCOME	$ 37,827	$ 36,913	$ 217,309	$ 207,494
EARNINGS PER COMMON SHARE:
Basic (in dollars per share)	$ 0.39	$ 0.35	$ 2.20	$ 1.92
Diluted (in dollars per share)	$ 0.39	$ 0.35	$ 2.18	$ 1.91
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic (in shares)	96,677	105,466	98,926	108,027
Diluted (in shares)	97,890	105,814	99,878	108,633
Cash dividends declared per common share (in dollars per share)	$ 0.225	$ 0.170	$ 0.675	$ 0.510

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 37,827	$ 36,913	$ 217,309	$ 207,494
OTHER COMPREHENSIVE INCOME (LOSS):
Foreign currency translation adjustment, net of tax	2	(7)	(40)	47
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	2	(7)	(40)	47
COMPREHENSIVE INCOME	$ 37,829	$ 36,906	$ 217,269	$ 207,541

CONSOLIDATED BALANCE SHEETS - U

CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) $ in Thousands	Nov. 03, 2018	Feb. 03, 2018	Oct. 28, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 92,103	$ 101,253	$ 111,815
Accounts receivable, net	57,559	60,107	88,979
Income taxes receivable	10,422	4,433	72,911
Inventories, net	2,196,777	1,711,103	2,178,495
Prepaid expenses and other current assets	138,468	129,189	129,876
Total current assets	2,495,329	2,006,085	2,582,076
Property and equipment, net	1,578,313	1,677,340	1,679,872
Intangible assets, net	131,763	136,587	144,896
Goodwill	250,476	250,476	245,126
Other assets:
Deferred income taxes	11,886	13,639	10,425
Other	115,991	119,812	122,519
Total other assets	127,877	133,451	132,944
TOTAL ASSETS	4,583,758	4,203,939	4,784,914
CURRENT LIABILITIES:
Accounts payable	1,028,234	843,075	1,061,776
Accrued expenses	350,737	354,181	378,477
Deferred revenue and other liabilities	167,781	212,080	161,193
Income taxes payable	2,078	10,476	488
Current portion of other long-term debt and leasing obligations	5,251	5,202	5,175
Total current liabilities	1,554,081	1,425,014	1,607,109
LONG-TERM LIABILITIES:
Revolving credit borrowings	382,300	0	454,700
Other long-term debt and leasing obligations	56,111	60,084	61,413
Deferred income taxes	14,951	10,232	23,710
Deferred rent and other liabilities	729,273	767,108	764,996
Total long-term liabilities	1,182,635	837,424	1,304,819
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Additional paid-in capital	1,204,293	1,177,778	1,166,370
Retained earnings	2,374,336	2,205,651	2,106,086
Accumulated other comprehensive loss	(118)	(78)	(85)
Treasury stock, at cost	(1,732,417)	(1,442,880)	(1,400,429)
Total stockholders' equity	1,847,042	1,941,501	1,872,986
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	4,583,758	4,203,939	4,784,914
Common Stock
STOCKHOLDERS' EQUITY:
Common stock	703	783	797
Class B Common Stock
STOCKHOLDERS' EQUITY:
Common stock	$ 245	$ 247	$ 247

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - UNAUDITED - 9 months ended Nov. 03, 2018 - USD ($) $ in Thousands	Total	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock	Common StockCommon Stock	Common StockClass B Common Stock
BALANCE at Feb. 03, 2018	$ 1,941,501	$ 1,177,778	$ 2,205,651	$ (78)	$ (1,442,880)	$ 783	$ 247
BALANCE (in shares) at Feb. 03, 2018						78,317,898	24,710,870
Increase (Decrease) in Stockholders' Equity
Adjustment for cumulative effect from change in accounting principle (ASU 2014-09)	20,488		20,488
Exchange of Class B common stock for common stock	0					$ 2	$ (2)
Exchange of Class B common stock for common stock (in shares)						169,747	(169,747)
Restricted stock vested	0	(5)				$ 5
Restricted stock vested (in shares)						532,251
Minimum tax withholding requirements	(5,264)	(5,263)				$ (1)
Minimum tax withholding requirements (in shares)						(155,718)
Net income	217,309		217,309
Stock-based compensation	31,783	31,783
Foreign currency translation adjustment, net of taxes of $13	(40)			(40)
Purchase of shares for treasury	(289,623)				(289,537)	$ (86)
Purchase of shares for treasury (in shares)						(8,614,371)
Cash dividends declared	(69,112)		(69,112)
BALANCE at Nov. 03, 2018	$ 1,847,042	$ 1,204,293	$ 2,374,336	$ (118)	$ (1,732,417)	$ 703	$ 245
BALANCE (in shares) at Nov. 03, 2018						70,249,807	24,541,123

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - UNAUDITED (Parenthetical) $ in Thousands	9 Months Ended
	Nov. 03, 2018USD ($)
Statement of Stockholders' Equity [Abstract]
Foreign currency translation adjustment, taxes	$ 13

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands	9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 217,309	$ 207,494
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	178,737	166,521
Deferred income taxes	(726)	59,145
Stock-based compensation	31,783	24,762
Other non-cash items	700	595
Changes in assets and liabilities:
Accounts receivable	(7,218)	(18,145)
Inventories	(466,212)	(539,863)
Prepaid expenses and other assets	7,950	(20,847)
Accounts payable	234,859	316,602
Accrued expenses	11,152	23,404
Income taxes payable / receivable	(14,387)	(123,350)
Deferred construction allowances	23,440	78,482
Deferred revenue and other liabilities	(56,859)	(49,258)
Net cash provided by operating activities	160,528	125,542
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(135,288)	(386,600)
Acquisitions, net of cash acquired	0	(8,500)
Deposits and purchases of other assets	0	(2,344)
Net cash used in investing activities	(135,288)	(397,444)
CASH FLOWS FROM FINANCING ACTIVITIES:
Revolving credit borrowings	1,723,500	2,431,200
Revolving credit repayments	(1,341,200)	(1,976,500)
Proceeds from term loan	0	62,492
Payments on other long-term debt and leasing obligations	(3,924)	(1,229)
Construction allowance receipts	0	0
Proceeds from exercise of stock options	0	16,558
Minimum tax withholding requirements	(5,264)	(5,771)
Cash paid for treasury stock	(289,623)	(242,119)
Cash dividends paid to stockholders	(68,139)	(55,375)
Decrease in bank overdraft	(49,700)	(10,363)
Net cash (used in) provided by financing activities	(34,350)	218,893
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(40)	47
NET DECREASE IN CASH AND CASH EQUIVALENTS	(9,150)	(52,962)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	101,253	164,777
CASH AND CASH EQUIVALENTS, END OF PERIOD	92,103	111,815
Supplemental disclosure of cash flow information:
Accrued property and equipment	14,308	44,593
Cash paid for interest	7,185	5,002
Cash paid for income taxes	$ 97,407	$ 180,067

Basis of Presentation

Basis of Presentation	9 Months Ended
	Nov. 03, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Dick's Sporting Goods, Inc. (together with its subsidiaries, referred to as "the Company", "we", "us" and "our" unless specified otherwise) is a leading omni-channel sporting goods retailer offering an extensive assortment of authentic, high-quality sports equipment, apparel, footwear and accessories through a blend of dedicated associates, in-store services and unique specialty shop-in-shops. The Company also owns and operates Golf Galaxy and Field & Stream stores and Dick's Team Sports HQ, an all-in-one youth sports digital platform offering free league management services, mobile apps for scheduling, communication and live scorekeeping, custom uniforms and FanWear as well as access to donations and sponsorships. The Company offers its products through a content-rich eCommerce platform that is integrated with its store network and provides customers with the convenience and expertise of a 24-hour storefront. When used in this Quarterly Report on Form 10-Q, unless the context otherwise requires or otherwise specifies, any reference to "year" is to the Company's fiscal year. The accompanying unaudited consolidated financial statements have been prepared in accordance with the requirements for Quarterly Reports on Form 10-Q and do not include all the disclosures normally required in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The interim consolidated financial statements are unaudited and have been prepared on the same basis as the annual audited consolidated financial statements. In the opinion of management, such unaudited consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the interim financial information. This unaudited interim financial information should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended February 3, 2018 as filed with the Securities and Exchange Commission on March 30, 2018 . Operating results for the 13 and 39 weeks ended November 3, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending February 2, 2019 or any other period. Recently Adopted Accounting Pronouncements Income Taxes In March 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-05, " Income Taxes (Topic 740) : Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. " This update provides guidance on income tax accounting implications under the Tax Cuts and Jobs Act (the "Tax Act"), which was enacted on December 22, 2017. Areas of clarification under the update are the measurement period time frame, changes in subsequent reporting periods, and reporting requirements as they relate to the Tax Act. The Company adopted ASU 2018-05 during the first quarter of fiscal 2018. The Company recorded provisional charges as a result of the Tax Act, as noted within Note 11 to the Consolidated Financial Statements of the Company's Annual Report on Form 10-K for the fiscal year ended February 3, 2018. The Company is continuing to assess our estimates of cumulative temporary differences and further evaluate the provisional amounts recognized, for which the Company's reviews are substantially complete. The adoption of this guidance did not have, nor is it expected to have, a significant impact on the Company's Consolidated Financial Statements. Stock Compensation In May 2017, the FASB issued ASU 2017-09, " Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. " This update clarifies the changes to terms or conditions of a share-based payment award that require an entity to apply modification accounting. ASU 2017-09 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017. Early application is permitted and prospective application is required. The Company adopted ASU 2017-09 during the first quarter of fiscal 2018. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements. Intangibles - Goodwill and Other In January 2017, the FASB issued ASU 2017-04, " Intangibles - Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment. " This update modifies the concept of impairment and simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 is effective for interim or annual goodwill impairment tests during fiscal years beginning after December 15, 2019. Early application is permitted and prospective application is required. The Company elected to early adopt ASU 2017-04 during the first quarter of fiscal 2018. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements. Contracts with Customers In May 2014, the FASB issued ASU 2014-09, " Revenue from Contracts with Customers. " This update requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the update (1) specifies the accounting for some costs to obtain or fulfill a contract with a customer and (2) expands disclosure requirements related to revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14, " Revenue from Contracts with Customers - Deferral of the Effective Date ", which approved a one year deferral of ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Subsequent to the issuance of ASU 2014-09 and ASU 2015-14, the FASB has also issued additional ASUs to assist in clarifying guidance within ASU 2014-09. These updates permit the use of either the full retrospective or modified retrospective transition method. Early application is permitted as of the original effective date for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company adopted these ASUs during the first quarter of fiscal 2018. The adoption of these ASUs did not have a significant impact on our Consolidated Financial Statements. Refer to Note 6 to the unaudited Consolidated Financial Statements for additional information. Recently Issued Accounting Pronouncements Leases In February 2016, the FASB issued ASU 2016-02, " Leases (Topic 842) ." This update requires an entity to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about the entity's leasing arrangements. ASU 2016-02 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2018, with early application permitted. A modified retrospective approach is required. In July 2018, the FASB issued ASU 2018-10, "Codification Improvements to Topic 842, Leases," and ASU 2018-11, "Leases (Topic 842), Targeted Improvements," which affect certain aspects of the previously issued guidance. Amendments include an additional transition method that allows entities to apply the new standard on the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings, as well as a new practical expedient for lessors. The effective date and transition requirements for ASU 2018-10 and ASU 2018-11 are the same as ASU 2016-02. Early adoption is permitted. The Company is currently in the process of upgrading its existing lease management technology solution to facilitate adoption of these ASUs in fiscal 2019. We are also currently evaluating the impact of the adoption of these ASUs on the Company's Consolidated Financial Statements with anticipation that they will result in significant lease assets and related liabilities as all of the Company's retail locations and the majority of our supply chain facilities are currently categorized as operating leases. We do not anticipate that the adoption of these ASUs will have a significant impact on the Company's Consolidated Statement of Income.

Store Closings

Store Closings	9 Months Ended
	Nov. 03, 2018
Store Closings [Abstract]
Store Closings	Store Closings The calculation of accrued store closing and relocation reserves primarily includes future minimum lease payments, maintenance costs and taxes from the date of closure or relocation to the end of the remaining lease term, net of contractual or estimated sublease income. The liability is discounted using a credit-adjusted, risk-free rate of interest. The assumptions used in the calculation of the accrued store closing and relocation reserves are evaluated each quarter. The following table summarizes the activity in fiscal 2018 and 2017 (in thousands): 39 Weeks Ended November 3, October 28, Accrued store closing and relocation reserves, beginning of period $ 10,536 $ 17,531 Expense charged to earnings 3,234 842 Cash payments (6,274 ) (7,299 ) Interest accretion and other changes in assumptions (760 ) 748 Accrued store closing and relocation reserves, end of period 6,736 11,822 Less: current portion of accrued store closing and relocation reserves (3,179 ) (4,938 ) Long-term portion of accrued store closing and relocation reserves $ 3,557 $ 6,884

Earnings Per Common Share

Earnings Per Common Share	9 Months Ended
	Nov. 03, 2018
Earnings Per Share [Abstract]
Earnings Per Common Share	Earnings Per Common Share Basic earnings per common share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed based on the weighted average number of shares of common stock outstanding, plus the effect of dilutive potential common shares outstanding during the period, using the treasury stock method. Dilutive potential common shares are stock-based awards, which include outstanding stock options, restricted stock and warrants. The computations for basic and diluted earnings per common share are as follows (in thousands, except per share data): 13 Weeks Ended 39 Weeks Ended November 3, October 28, November 3, October 28, Net income $ 37,827 $ 36,913 $ 217,309 $ 207,494 Weighted average common shares outstanding - basic 96,677 105,466 98,926 108,027 Dilutive effect of stock-based awards 1,213 348 952 606 Weighted average common shares outstanding - diluted 97,890 105,814 99,878 108,633 Earnings per common share - basic $ 0.39 $ 0.35 $ 2.20 $ 1.92 Earnings per common share - diluted $ 0.39 $ 0.35 $ 2.18 $ 1.91 Anti-dilutive stock-based awards excluded from diluted calculation 3,065 4,178 3,672 3,581

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Nov. 03, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Accounting Standard Codification ("ASC") 820, " Fair Value Measurement and Disclosures ", outlines a valuation framework and creates a fair value hierarchy for assets and liabilities as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Assets measured at fair value on a recurring basis as of November 3, 2018 and February 3, 2018 are set forth in the table below (in thousands): Level 1 Description November 3, February 3, Assets: Deferred compensation plan assets held in trust (1) $ 82,898 $ 78,894 Total assets $ 82,898 $ 78,894 (1) Consists of investments in various mutual funds made by eligible individuals as part of the Company's deferred compensation plans. The fair value of cash and cash equivalents, accounts receivable, accounts payable, revolving credit borrowings and certain other liabilities approximated book value due to the short-term nature of these instruments at both November 3, 2018 and February 3, 2018 . The Company uses quoted prices in active markets to determine the fair value of the aforementioned assets determined to be Level 1 instruments. The Company's policy for recognition of transfers between levels of the fair value hierarchy is to recognize any transfer at the end of the fiscal quarter in which the determination to transfer was made. The Company did not transfer any assets or liabilities among the levels of the fair value hierarchy during the 39 weeks ended November 3, 2018 or the fiscal year ended February 3, 2018 .

Subsequent Event

Subsequent Event	9 Months Ended
	Nov. 03, 2018
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event On November 23, 2018 , the Company's Board of Directors authorized and declared a quarterly cash dividend in the amount of $0.225 per share on the Company's common stock and Class B common stock payable on December 28, 2018 to stockholders of record as of the close of business on December 14, 2018 .

Revenue Recognition

Revenue Recognition	9 Months Ended
	Nov. 03, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition On February 4, 2018, the Company adopted ASU 2014-09 ("Topic 606") using the modified retrospective approach for all contracts not completed as of the adoption date. Financial results for reporting periods beginning after February 3, 2018 are presented in accordance with Topic 606, while prior periods will continue to be reported in accordance with our pre-adoption accounting policies and therefore have not been adjusted to conform to Topic 606. The primary impact to the Company's accounting policies of adopting Topic 606 relates to the timing of revenue recognition for gift card breakage. Gift card breakage prior to adoption was recognized at the point gift card redemption was deemed remote. As a result of the adoption of Topic 606, the Company now recognizes gift card breakage over time in proportion to the pattern of rights exercised by the customer. This change in accounting policy was accounted for through a cumulative effect adjustment to increase retained earnings during the first quarter of fiscal 2018. The Company reclassified $27.7 million from deferred revenue and other liabilities resulting in a cumulative effect adjustment of $20.5 million , net of tax, to retained earnings on the Company's Consolidated Balance Sheets and Consolidated Statement of Changes in Stockholders' Equity. Additionally, the adoption of Topic 606 resulted in insignificant financial statement presentation reclassifications related to our customer loyalty program and our sales return reserve. The Company does not expect the adoption of Topic 606 to have a significant impact on the Consolidated Financial Statements on a prospective basis. In accordance with Topic 606, revenue shall be recognized upon satisfaction of all contractual performance obligations and transfer of control to the customer. Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for corresponding goods or services. Substantially all of the Company's sales are single performance obligation arrangements for retail sale transactions for which the transaction price is equivalent to the stated price of the product or service, net of any stated discounts applicable at a point in time. Each sales transaction results in an implicit contract with the customer to deliver a product or service at the point of sale. Revenue from retail sales is recognized at the point of sale, net of sales tax. The Company elected the practical expedient within Topic 606 related to sales taxes that are assessed by a governmental authority, which allows for the exclusion of sales tax from transaction price. Revenue from eCommerce sales, including vendor-direct sales arrangements, is recognized upon shipment of merchandise. The Company elected the practical expedient within Topic 606 related to shipping and handling costs, which allows for shipping and handling activities occurring subsequent to the transfer of control to the customer to be accounted for as fulfillment costs rather than a promised service. A provision for anticipated merchandise returns is provided through a reduction of sales and cost of goods sold in the period that the related sales are recorded. Deferred gift card revenue - Revenue from gift cards and returned merchandise credits (collectively the "cards") is deferred and recognized upon the redemption of the cards. These cards have no expiration date. Income from unredeemed cards is recognized on the Consolidated Statements of Income within net sales in proportion to the pattern of rights exercised by the customer in future periods. The Company performs an evaluation of historical redemption patterns from the date of original issuance to estimate future period redemption activity. Our gift card liability was $113.9 million and $179.5 million as of November 3, 2018 and February 3, 2018, respectively. During the 39 weeks ended November 3, 2018 , we recognized $5.1 million of gift card breakage revenue and experienced approximately $72.7 million of gift card redemptions that were included in our gift card liability as of February 3, 2018. Based on the Company's historical experience, the vast majority of gift card revenue is recognized within twelve months of deferral. Customer loyalty program - Loyalty program points are accrued at the estimated retail value per point, net of estimated breakage. We estimate the breakage of loyalty points based on historical redemption rates experienced within the loyalty program. Our customer loyalty program liability was $27.4 million and $29.9 million as of November 3, 2018 and February 3, 2018, respectively. During the 39 weeks ended November 3, 2018 , we recognized approximately $26.2 million of revenue that was included in our customer loyalty program liability as of February 3, 2018. Based on the Company's customer loyalty program policies, the vast majority of program points earned are redeemed or expire within twelve months. Net sales by category - The following table disaggregates the amount of net sales attributable to hardlines, apparel and footwear for the periods presented (in millions): 13 Weeks Ended 39 Weeks Ended November 3, October 28, November 3, October 28, Hardlines (1) $ 771 $ 882 $ 2,742 $ 2,860 Apparel 643 605 1,835 1,744 Footwear 413 431 1,267 1,251 Other (2) 30 26 100 71 Total net sales $ 1,857 $ 1,944 $ 5,944 $ 5,926 (1) Includes items such as sporting goods equipment, fitness equipment, golf equipment and hunting and fishing gear. (2) Includes the Company's non-merchandise sales categories, including in-store services, shipping revenues and credit card processing revenues.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Nov. 03, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recently Adopted Accounting Pronouncements / Recently Issued Accounting Pronouncements	Recently Adopted Accounting Pronouncements Income Taxes In March 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-05, " Income Taxes (Topic 740) : Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. " This update provides guidance on income tax accounting implications under the Tax Cuts and Jobs Act (the "Tax Act"), which was enacted on December 22, 2017. Areas of clarification under the update are the measurement period time frame, changes in subsequent reporting periods, and reporting requirements as they relate to the Tax Act. The Company adopted ASU 2018-05 during the first quarter of fiscal 2018. The Company recorded provisional charges as a result of the Tax Act, as noted within Note 11 to the Consolidated Financial Statements of the Company's Annual Report on Form 10-K for the fiscal year ended February 3, 2018. The Company is continuing to assess our estimates of cumulative temporary differences and further evaluate the provisional amounts recognized, for which the Company's reviews are substantially complete. The adoption of this guidance did not have, nor is it expected to have, a significant impact on the Company's Consolidated Financial Statements. Stock Compensation In May 2017, the FASB issued ASU 2017-09, " Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. " This update clarifies the changes to terms or conditions of a share-based payment award that require an entity to apply modification accounting. ASU 2017-09 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017. Early application is permitted and prospective application is required. The Company adopted ASU 2017-09 during the first quarter of fiscal 2018. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements. Intangibles - Goodwill and Other In January 2017, the FASB issued ASU 2017-04, " Intangibles - Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment. " This update modifies the concept of impairment and simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 is effective for interim or annual goodwill impairment tests during fiscal years beginning after December 15, 2019. Early application is permitted and prospective application is required. The Company elected to early adopt ASU 2017-04 during the first quarter of fiscal 2018. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements. Contracts with Customers In May 2014, the FASB issued ASU 2014-09, " Revenue from Contracts with Customers. " This update requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the update (1) specifies the accounting for some costs to obtain or fulfill a contract with a customer and (2) expands disclosure requirements related to revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14, " Revenue from Contracts with Customers - Deferral of the Effective Date ", which approved a one year deferral of ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Subsequent to the issuance of ASU 2014-09 and ASU 2015-14, the FASB has also issued additional ASUs to assist in clarifying guidance within ASU 2014-09. These updates permit the use of either the full retrospective or modified retrospective transition method. Early application is permitted as of the original effective date for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company adopted these ASUs during the first quarter of fiscal 2018. The adoption of these ASUs did not have a significant impact on our Consolidated Financial Statements. Refer to Note 6 to the unaudited Consolidated Financial Statements for additional information. Recently Issued Accounting Pronouncements Leases In February 2016, the FASB issued ASU 2016-02, " Leases (Topic 842) ." This update requires an entity to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about the entity's leasing arrangements. ASU 2016-02 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2018, with early application permitted. A modified retrospective approach is required. In July 2018, the FASB issued ASU 2018-10, "Codification Improvements to Topic 842, Leases," and ASU 2018-11, "Leases (Topic 842), Targeted Improvements," which affect certain aspects of the previously issued guidance. Amendments include an additional transition method that allows entities to apply the new standard on the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings, as well as a new practical expedient for lessors. The effective date and transition requirements for ASU 2018-10 and ASU 2018-11 are the same as ASU 2016-02. Early adoption is permitted. The Company is currently in the process of upgrading its existing lease management technology solution to facilitate adoption of these ASUs in fiscal 2019. We are also currently evaluating the impact of the adoption of these ASUs on the Company's Consolidated Financial Statements with anticipation that they will result in significant lease assets and related liabilities as all of the Company's retail locations and the majority of our supply chain facilities are currently categorized as operating leases. We do not anticipate that the adoption of these ASUs will have a significant impact on the Company's Consolidated Statement of Income.

Store Closings (Tables)

Store Closings (Tables)	9 Months Ended
	Nov. 03, 2018
Store Closings [Abstract]
Schedule of the entity's accrued store closing and relocation reserves	The following table summarizes the activity in fiscal 2018 and 2017 (in thousands): 39 Weeks Ended November 3, October 28, Accrued store closing and relocation reserves, beginning of period $ 10,536 $ 17,531 Expense charged to earnings 3,234 842 Cash payments (6,274 ) (7,299 ) Interest accretion and other changes in assumptions (760 ) 748 Accrued store closing and relocation reserves, end of period 6,736 11,822 Less: current portion of accrued store closing and relocation reserves (3,179 ) (4,938 ) Long-term portion of accrued store closing and relocation reserves $ 3,557 $ 6,884

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	9 Months Ended
	Nov. 03, 2018
Earnings Per Share [Abstract]
Schedule of the computations for basic and diluted earnings per common share	The computations for basic and diluted earnings per common share are as follows (in thousands, except per share data): 13 Weeks Ended 39 Weeks Ended November 3, October 28, November 3, October 28, Net income $ 37,827 $ 36,913 $ 217,309 $ 207,494 Weighted average common shares outstanding - basic 96,677 105,466 98,926 108,027 Dilutive effect of stock-based awards 1,213 348 952 606 Weighted average common shares outstanding - diluted 97,890 105,814 99,878 108,633 Earnings per common share - basic $ 0.39 $ 0.35 $ 2.20 $ 1.92 Earnings per common share - diluted $ 0.39 $ 0.35 $ 2.18 $ 1.91 Anti-dilutive stock-based awards excluded from diluted calculation 3,065 4,178 3,672 3,581

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Nov. 03, 2018
Fair Value Disclosures [Abstract]
Schedule of assets measured at fair value on a recurring basis	Assets measured at fair value on a recurring basis as of November 3, 2018 and February 3, 2018 are set forth in the table below (in thousands): Level 1 Description November 3, February 3, Assets: Deferred compensation plan assets held in trust (1) $ 82,898 $ 78,894 Total assets $ 82,898 $ 78,894 (1) Consists of investments in various mutual funds made by eligible individuals as part of the Company's deferred compensation plans.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Nov. 03, 2018
Revenue from Contract with Customer [Abstract]
Schedule of net sales attributable to hardlines, apparel and footwear	The following table disaggregates the amount of net sales attributable to hardlines, apparel and footwear for the periods presented (in millions): 13 Weeks Ended 39 Weeks Ended November 3, October 28, November 3, October 28, Hardlines (1) $ 771 $ 882 $ 2,742 $ 2,860 Apparel 643 605 1,835 1,744 Footwear 413 431 1,267 1,251 Other (2) 30 26 100 71 Total net sales $ 1,857 $ 1,944 $ 5,944 $ 5,926 (1) Includes items such as sporting goods equipment, fitness equipment, golf equipment and hunting and fishing gear. (2) Includes the Company's non-merchandise sales categories, including in-store services, shipping revenues and credit card processing revenues.

Store Closings (Details)

Store Closings (Details) - USD ($) $ in Thousands	9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017
Store Closings
Accrued store closing and relocation reserves, beginning of period	$ 10,536	$ 17,531
Expense charged to earnings	3,234	842
Cash payments	(6,274)	(7,299)
Interest accretion and other changes in assumptions	(760)	748
Accrued store closing and relocation reserves, end of period	6,736	11,822
Less: current portion of accrued store closing and relocation reserves	(3,179)	(4,938)
Long-term portion of accrued store closing and relocation reserves	$ 3,557	$ 6,884

Earnings Per Common Share (Deta

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017
Earnings Per Share [Abstract]
Net income	$ 37,827	$ 36,913	$ 217,309	$ 207,494
Weighted average common shares outstanding - basic	96,677	105,466	98,926	108,027
Dilutive effect of stock-based awards (in shares)	1,213	348	952	606
Weighted average common shares outstanding - diluted	97,890	105,814	99,878	108,633
Earnings per common share - basic (in dollars per share)	$ 0.39	$ 0.35	$ 2.20	$ 1.92
Earnings per common share - diluted (in dollars per share)	$ 0.39	$ 0.35	$ 2.18	$ 1.91
Anti-dilutive stock-based awards excluded from diluted calculation (in shares)	3,065	4,178	3,672	3,581

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Level 1 - USD ($) $ in Thousands	Nov. 03, 2018	Feb. 03, 2018
Fair Value Measurements
Deferred compensation plan assets held in trust	$ 82,898	$ 78,894
Total assets	$ 82,898	$ 78,894

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Event	Nov. 23, 2018$ / shares
Common Stock
Subsequent Event
Dividend amount (in dollars per share)	$ 0.225
Class B Common Stock
Subsequent Event
Dividend amount (in dollars per share)	$ 0.225

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	9 Months Ended
	Nov. 03, 2018	Feb. 04, 2018	Feb. 03, 2018	Oct. 28, 2017
Revenue Recognition
Deferred revenue and other liabilities	$ 167,781		$ 212,080	$ 161,193
Deferred gift card revenue contract liability	113,900		179,500
Customer loyalty program contract liability	27,400		$ 29,900
Customer loyalty redemption revenue
Revenue Recognition
Revenue recognized from contract liability at beginning of period	$ 26,200
Expected timing of performance obligation satisfaction	1 year
Gift card breakage revenue
Revenue Recognition
Revenue recognized from contract liability at beginning of period	$ 5,100
Gift card redemption revenue
Revenue Recognition
Revenue recognized from contract liability at beginning of period	$ 72,700
Expected timing of performance obligation satisfaction	1 year
Accounting standards update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
Revenue Recognition
Deferred revenue and other liabilities		$ (27,700)
Cumulative effect of new accounting principle in period of adoption		$ 20,500

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017
Nature of Revenue
Total net sales	$ 1,857,273	$ 1,944,187	$ 5,944,480	$ 5,926,350
Hardlines
Nature of Revenue
Total net sales	771,000	882,000	2,742,000	2,860,000
Apparel
Nature of Revenue
Total net sales	643,000	605,000	1,835,000	1,744,000
Footwear
Nature of Revenue
Total net sales	413,000	431,000	1,267,000	1,251,000
Other
Nature of Revenue
Total net sales	$ 30,000	$ 26,000	$ 100,000	$ 71,000