Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 03, 2022 | Jul. 26, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 03, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | BGFV | |
Entity Registrant Name | BIG 5 SPORTING GOODS CORPORATION | |
Entity Central Index Key | 0001156388 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --01-01 | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Security Exchange Name | NASDAQ | |
Entity Address, State or Province | CA | |
Entity File Number | 000-49850 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4388794 | |
Entity Address, Address Line One | 2525 East El Segundo Boulevard | |
Entity Address, City or Town | El Segundo | |
Entity Address, Postal Zip Code | 90245 | |
City Area Code | 310 | |
Local Phone Number | 536-0611 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 22,175,590 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 03, 2022 | Jan. 02, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 36,597 | $ 97,420 |
Accounts receivable, net of allowances of $19 and $62, respectively | 14,248 | 13,654 |
Merchandise inventories, net | 337,703 | 279,981 |
Prepaid expenses | 18,864 | 16,293 |
Total current assets | 407,412 | 407,348 |
Operating lease right-of-use assets, net | 294,828 | 270,110 |
Property and equipment, net | 56,717 | 60,401 |
Deferred income taxes | 10,490 | 12,097 |
Other assets, net of accumulated amortization of $1,131 and $905, respectively | 4,537 | 3,997 |
Total assets | 773,984 | 753,953 |
Current liabilities: | ||
Accounts payable | 114,784 | 104,359 |
Accrued expenses | 68,195 | 85,041 |
Current portion of operating lease liabilities | 77,421 | 76,882 |
Current portion of finance lease liabilities | 3,481 | 3,518 |
Total current liabilities | 263,881 | 269,800 |
Operating lease liabilities, less current portion | 227,215 | 204,134 |
Finance lease liabilities, less current portion | 5,536 | 6,456 |
Other long-term liabilities | 6,937 | 6,254 |
Total liabilities | 503,569 | 486,644 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.01 par value, authorized 50,000,000 shares; issued 26,482,845 and 26,109,003 shares, respectively; outstanding 22,176,990 and 22,097,467 shares, respectively | 264 | 260 |
Additional paid-in capital | 125,151 | 124,909 |
Retained earnings | 199,242 | 192,261 |
Less: Treasury stock, at cost; 4,305,855 and 4,011,536 shares, respectively | (54,242) | (50,121) |
Total stockholders' equity | 270,415 | 267,309 |
Total liabilities and stockholders' equity | $ 773,984 | $ 753,953 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 03, 2022 | Jan. 02, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 19 | $ 62 |
Accumulated amortization on other assets | $ 1,131 | $ 905 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 26,482,845 | 26,109,003 |
Common stock, shares outstanding | 22,176,990 | 22,097,467 |
Treasury stock, shares | 4,305,855 | 4,011,536 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2022 | Jul. 04, 2021 | Jul. 03, 2022 | Jul. 04, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 253,800 | $ 326,020 | $ 495,781 | $ 598,826 |
Cost of sales | 164,934 | 199,097 | 320,982 | 374,010 |
Gross profit | 88,866 | 126,923 | 174,799 | 224,816 |
Selling and administrative expense | 76,628 | 78,379 | 151,945 | 148,523 |
Operating income | 12,238 | 48,544 | 22,854 | 76,293 |
Interest expense | 136 | 184 | 320 | 526 |
Income before income taxes | 12,102 | 48,360 | 22,534 | 75,767 |
Income tax expense | 3,168 | 11,557 | 4,497 | 17,418 |
Net income | $ 8,934 | $ 36,803 | $ 18,037 | $ 58,349 |
Earnings per share: | ||||
Basic | $ 0.41 | $ 1.69 | $ 0.83 | $ 2.70 |
Diluted | $ 0.41 | $ 1.63 | $ 0.81 | $ 2.59 |
Weighted-average shares of common stock outstanding: | ||||
Basic | 21,675 | 21,746 | 21,677 | 21,582 |
Diluted | 22,039 | 22,593 | 22,197 | 22,507 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock Outstanding [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock, At Cost [Member] |
Beginning Balance at Jan. 03, 2021 | $ 232,638 | $ 255 | $ 121,837 | $ 153,073 | $ (42,527) | |
Beginning Balance, Shares at Jan. 03, 2021 | 21,930,328 | |||||
Net income | 58,349 | 58,349 | ||||
Dividends on common stock | (29,694) | (29,694) | ||||
Issuance of nonvested share awards | 2 | (2) | ||||
Issuance of nonvested share awards, Shares | 248,550 | |||||
Exercise of share option awards | 1,800 | 3 | 1,797 | |||
Exercise of share option awards, Shares | 317,675 | |||||
Share-based compensation | 904 | 904 | ||||
Forfeiture of nonvested share awards, Shares | (6,055) | |||||
Retirement of common stock for payment of withholding tax | (1,046) | (1,046) | ||||
Retirement of common stock for payment of withholding tax, Shares | (70,228) | |||||
Ending Balance at Jul. 04, 2021 | 262,951 | 260 | 123,490 | 181,728 | (42,527) | |
Ending Balance, shares at Jul. 04, 2021 | 22,420,270 | |||||
Beginning Balance at Apr. 04, 2021 | 251,200 | 259 | 122,188 | 171,280 | (42,527) | |
Beginning Balance, Shares at Apr. 04, 2021 | 22,288,260 | |||||
Net income | 36,803 | 36,803 | ||||
Dividends on common stock | (26,355) | (26,355) | ||||
Issuance of nonvested share awards, Shares | 13,070 | |||||
Exercise of share option awards | 824 | 1 | 823 | |||
Exercise of share option awards, Shares | 121,475 | |||||
Share-based compensation | 479 | 479 | ||||
Forfeiture of nonvested share awards, Shares | (2,535) | |||||
Ending Balance at Jul. 04, 2021 | 262,951 | 260 | 123,490 | 181,728 | (42,527) | |
Ending Balance, shares at Jul. 04, 2021 | 22,420,270 | |||||
Beginning Balance at Jan. 02, 2022 | 267,309 | 260 | 124,909 | 192,261 | (50,121) | |
Beginning Balance, Shares at Jan. 02, 2022 | 22,097,467 | |||||
Net income | 18,037 | 18,037 | ||||
Dividends on common stock | (11,056) | (11,056) | ||||
Issuance of nonvested share awards | 2 | (2) | ||||
Issuance of nonvested share awards, Shares | 284,630 | |||||
Conversion of vested share unit awards | 1 | (1) | ||||
Conversion of vested share unit awards, Shares | 124,012 | |||||
Exercise of share option awards | $ 272 | 1 | 271 | |||
Exercise of share option awards, Shares | 67,750 | 67,750 | ||||
Share-based compensation | $ 1,186 | 1,186 | ||||
Forfeiture of nonvested share awards, Shares | (25,210) | |||||
Retirement of common stock for payment of withholding tax | $ (1,212) | (1,212) | ||||
Retirement of common stock for payment of withholding tax, Shares | (77,340) | (77,340) | ||||
Purchases of treasury stock | $ (4,121) | (4,121) | ||||
Purchases of treasury stock, Shares | (294,319) | |||||
Ending Balance at Jul. 03, 2022 | 270,415 | 264 | 125,151 | 199,242 | (54,242) | |
Ending Balance, shares at Jul. 03, 2022 | 22,176,990 | |||||
Beginning Balance at Apr. 03, 2022 | 268,901 | 264 | 124,501 | 195,815 | (51,679) | |
Beginning Balance, Shares at Apr. 03, 2022 | 22,344,586 | |||||
Net income | 8,934 | 8,934 | ||||
Dividends on common stock | (5,507) | (5,507) | ||||
Issuance of nonvested share awards, Shares | 48,070 | |||||
Exercise of share option awards | 27 | 27 | ||||
Exercise of share option awards, Shares | 6,175 | |||||
Share-based compensation | 623 | 623 | ||||
Forfeiture of nonvested share awards, Shares | (22,505) | |||||
Purchases of treasury stock | (2,563) | (2,563) | ||||
Purchases of treasury stock, Shares | (199,336) | |||||
Ending Balance at Jul. 03, 2022 | $ 270,415 | $ 264 | $ 125,151 | $ 199,242 | $ (54,242) | |
Ending Balance, shares at Jul. 03, 2022 | 22,176,990 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2022 | Jul. 04, 2021 | Jul. 03, 2022 | Jul. 04, 2021 | |
Retained Earnings [Member] | ||||
Dividends per share | $ 0.25 | $ 1.18 | $ 0.50 | $ 1.33 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 18,037 | $ 58,349 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 8,830 | 8,648 |
Share-based compensation | 1,186 | 904 |
Amortization of other assets | 225 | 366 |
Loss on disposal of equipment | 288 | |
Noncash lease expense | 33,881 | 32,343 |
Proceeds from insurance recovery - lost profit margin and expenses | 1,083 | |
Gain on recovery of insurance proceeds - lost profit margin and expenses | (460) | |
Gain on recovery of insurance proceeds - property and equipment | (249) | |
Deferred income taxes | 1,607 | 435 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (425) | 3,608 |
Merchandise inventories, net | (57,722) | (7,725) |
Prepaid expenses and other assets | (3,336) | (675) |
Accounts payable | 8,593 | 24,478 |
Operating lease liabilities | (35,148) | (33,704) |
Accrued expenses and other long-term liabilities | (15,147) | 1,337 |
Net cash (used in) provided by operating activities | (39,131) | 88,738 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (5,532) | (4,105) |
Proceeds from insurance recovery - property and equipment | 249 | |
Proceeds from disposal of property and equipment | 13 | |
Net cash used in investing activities | (5,519) | (3,856) |
Cash flows from financing activities: | ||
Changes in book overdraft | 2,325 | 56 |
Debt issuance costs paid | (717) | |
Principal payments under finance lease liabilities | (1,899) | (1,559) |
Proceeds from exercise of share option awards | 272 | 1,800 |
Cash purchases of treasury stock | (4,121) | |
Tax withholding payments for share-based compensation | (1,212) | (1,046) |
Dividends paid | (11,538) | (29,130) |
Net cash used in financing activities | (16,173) | (30,596) |
Net (decrease) increase in cash and cash equivalents | (60,823) | 54,286 |
Cash and cash equivalents at beginning of period | 97,420 | 64,654 |
Cash and cash equivalents at end of period | 36,597 | 118,940 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Property and equipment acquired under finance leases | 942 | 4,649 |
Property and equipment additions unpaid | 1,363 | 1,437 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 316 | 356 |
Income taxes paid | $ 5,367 | $ 10,889 |
Description of Business
Description of Business | 6 Months Ended |
Jul. 03, 2022 | |
Accounting Policies [Abstract] | |
Description of Business | (1) Description of Business Big 5 Sporting Goods Corporation (the “Company”) is a leading sporting goods retailer in the western United States, operating 431 stores and an e-commerce platform as of July 3, 2022 . The Company provides a full-line product offering in a traditional sporting goods store format that averages approximately 11,000 square feet. The Company’s product mix includes athletic shoes, apparel and accessories, as well as a broad selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, home recreation, tennis, golf and winter and summer recreation. The Company is a holding company that operates as one reportable segment through Big 5 Corp., its 100 %-owned subsidiary, and Big 5 Services Corp., which is a 100 %-owned subsidiary of Big 5 Corp. Big 5 Services Corp. provides a centralized operation for the issuance and administration of gift cards and returned merchandise credits (collectively, “stored-value cards”). The accompanying interim unaudited condensed consolidated financial statements (“Interim Financial Statements”) of the Company and its 100%-owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and are presented in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these Interim Financial Statements do not include all of the information and notes required by GAAP for complete financial statements. These Interim Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended January 2, 2022 included in the Company’s Annual Report on Form 10-K. In the opinion of management, the Interim Financial Statements included herein contain all adjustments, including normal recurring adjustments, considered necessary to present fairly the Company’s financial position, the results of operations and cash flows for the periods presented. The operating results and cash flows of the interim periods presented herein are not necessarily indicative of the results to be expected for any other interim period or the full year. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 03, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Consolidation The accompanying Interim Financial Statements include the accounts of Big 5 Sporting Goods Corporation, Big 5 Corp. and Big 5 Services Corp. Intercompany balances and transactions have been eliminated in consolidation. Reporting Period The Company follows the concept of a 52 - 53 week fiscal year, which ends on the Sunday nearest December 31. Fiscal year 2022 is comprised of 52 weeks and ends on January 1, 2023. Fiscal year 2021 was comprised of 52 weeks and ended on January 2, 2022. The interim periods in fiscal 2022 and 2021 are each comprised of 13 weeks. Recently Issued Accounting Updates In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This standard provides optional guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this standard apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The amendments in this standard are elective and are effective upon issuance for all entities, and the impact from this standard is expected to be immaterial. Other recently issued accounting updates are not expected to have a material impact on the Company’s Interim Financial Statements. COVID-19 Impact on Concentration of Risk In recent years, the novel coronavirus (“COVID-19”) pandemic has significantly impacted health and economic conditions throughout the United States and globally, as public concern about becoming ill with the virus has led to the issuance of recommendations and/or mandates from federal, state and local authorities to practice social distancing or self-quarantine. At the start of the COVID-19 pandemic in fiscal 2020, the Company was forced to temporarily close more than half of its retail store locations and was subsequently able to gradually reopen these stores. In the first quarter of fiscal 2021, the Company experienced a limited number of temporary store closures throughout the chain resulting from COVID-19 outbreaks. Store operating hours in the second quarter of fiscal 2022 were negatively impacted by a resurgence of COVID-related cases that led to quarantining of employees of certain stores throughout the chain. As the pandemic continues to evolve, the Company may be further required to restrict the operations of its stores or distribution center if it is deemed necessary or if recommended or mandated by authorities. A substantial amount of the Company’s inventory is manufactured abroad. COVID-19 has also impacted the Company’s supply chain for products sold, particularly those products that are sourced from Asia. To the extent one or more vendors is negatively impacted by continued supply chain disruptions or by COVID-19, including due to interruptions at or closure of those vendors’ distribution centers or manufacturing facilities, or the Company or its vendors are unable to obtain the necessary shipping capacity to transport products to the Company’s distribution center, the Company may be unable to maintain delivery schedules or adequate inventory in its stores. During the second half of fiscal 2021, and continuing into the first half of fiscal 2022, the Company experienced significant shipping delays of products sourced from overseas vendors to be received at the Ports of Los Angeles and Long Beach, which reflected increased shipping volume and insufficient labor resources at the ports that have significantly increased cargo backlogs. While our ability to obtain product has begun to improve, these factors, in addition to workforce shortages in the trucking industry, have limited the Company’s ability to obtain desired quantities of inventory for various merchandise categories. While the Company has generally been able to sufficiently stock product in its stores to meet most consumer demand during the pandemic, future prolonged and sustained delays in product reaching the Company’s stores from overseas vendors, particularly during the holiday season, could result in the inability to obtain adequate levels of merchandise inventories to meet consumers’ needs, which could have an adverse impact on net sales and profitability. General Concentration of Risk The Company purchases merchandise from over 700 suppliers, and the Company’s 20 largest suppliers accounted for 36.8 % of total purchases in fiscal 2021. One vendor, Nike, represented greater than 5 % of total purchases, at 7.6 %, in fiscal 2021 and accounted for 8.7 % of the Company’s total sales in fiscal 2021. In early fiscal 2021, the Company was informed of an expansion of Nike’s direct-to-consumer initiatives that impacted certain multi-branded retailers, including the Company. This has led to a significant reduction in the Company’s supply chain relative to this vendor. Although the Company is no longer purchasing products directly from Nike, the Company expects to continue to purchase certain Nike branded products from authorized licensees. The Company has been actively expanding its relationships with other new and existing vendors in an effort to replace the affected Nike product within its product mix, which has been hampered in some instances by vendor supply chain challenges. A substantial amount of the Company’s inventory is manufactured abroad, and shipping ports may experience capacity constraints (such as delays associated with COVID-19), labor strikes, work stoppages or other disruptions that may delay the delivery of imported products. A contract dispute may lead to protracted delays in the movement of the Company’s products, which could further delay the delivery of products to the Company’s stores and impact net sales and profitability. In addition, other conditions outside of the Company’s control, such as adverse weather conditions or acts of terrorism or war, such as the current conflict in Ukraine, could significantly disrupt operations at shipping ports or otherwise impact transportation of the imported merchandise we sell, either through supply chain disruptions, or rising freight and fuel costs. Use of Estimates Management makes a number of estimates and assumptions relating to the reporting of assets, liabilities and stockholders’ equity and the disclosure of contingent assets and liabilities at the date of the Interim Financial Statements and reported amounts of revenue and expense during the reporting period to prepare these Interim Financial Statements in conformity with GAAP. Certain items subject to such estimates and assumptions include the carrying amount of merchandise inventories, property and equipment, lease assets and lease liabilities; valuation allowances for receivables, sales returns and deferred income tax assets; estimates related to stored-value cards and the valuation of share-based compensation awards; and obligations related to litigation, self-insurance liabilities and employee benefits. Due to the inherent uncertainty involved in making assumptions and estimates, events and changes in circumstances arising after July 3, 2022 , including those resulting from the impacts of future COVID-19 variant outbreaks, may result in actual outcomes that differ from those contemplated by management’s assumptions and estimates. Revenue Recognition The Company operates solely as a sporting goods retailer, which includes both retail stores and an e-commerce platform, that offers a broad range of products in the western United States and online. Generally, all revenue is recognized when control of the promised goods is transferred to customers, for an amount that reflects the consideration in exchange for those goods. Accordingly, the Company implicitly enters into a contract with customers to deliver merchandise inventory at the point of sale. Collectability is probable since the Company only extends immaterial credit purchases to certain municipalities and local school districts. In accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers , the Company disaggregates net sales into the following major merchandise categories to depict the nature and amount of revenue and related cash flows: 13 Weeks Ended 26 Weeks Ended July 3, July 4, July 3, July 4, (In thousands) Hardgoods $ 149,392 $ 196,721 $ 270,357 $ 337,627 Athletic and sport footwear 60,622 71,561 123,389 138,235 Athletic and sport apparel 43,111 57,146 99,684 120,672 Other sales 675 592 2,351 2,292 Net sales $ 253,800 $ 326,020 $ 495,781 $ 598,826 Substantially all of the Company’s revenue is for single performance obligations for the following distinct items: • Retail store sales • E-commerce sales • Stored-value cards For performance obligations related to retail store and e-commerce sales contracts, the Company typically transfers control, for retail stores, upon consummation of the sale when the product is paid for and taken by the customer and, for e-commerce sales, when the product is tendered for delivery to the common carrier. For performance obligations related to stored-value cards, the Company typically transfers control upon redemption of the stored-value card through consummation of a future sales transaction. The Company accounts for shipping and handling relative to e-commerce sales as fulfillment activities, and not a separate performance obligation. Accordingly, the Company recognizes revenue for only one performance obligation, the sale of the product, at shipping point (when the customer gains control). Revenue associated with e-commerce sales was not material for the 13 and 26 weeks ended July 3, 2022 and July 4, 2021. The Company recognized $ 1.5 million and $ 3.3 million in stored-value card redemption revenue for the 13 and 26 weeks ended July 3, 2022 , respectively, compared to $ 1.5 million and $ 3.2 million in stored-value card redemption revenue for the 13 and 26 weeks ended July 4, 2021, respectively. The Company also recognized $ 0.1 million and $ 0.2 million in stored-value card breakage revenue for the 13 and 26 weeks ended July 3, 2022 , respectively, compared to $ 0.1 million and $ 0.2 million in stored-value card breakage revenue for the 13 and 26 weeks ended July 4, 2021, respectively. The Company had outstanding stored-value card liabilities of $ 7.8 million and $ 8.3 million as of July 3, 2022 and January 2, 2022 , respectively, which are included in accrued expenses in the accompanying interim unaudited condensed consolidated balance sheets. Based upon historical experience, stored-value cards are predominantly redeemed in the first two years following their issuance date. In the accompanying interim unaudited condensed consolidated balance sheets, the Company recorded, as prepaid expense, estimated right-of-return merchandise cost of $ 0.9 million and $ 1.2 million related to estimated sales returns as of July 3, 2022 and January 2, 2022, respectively, and recorded, in accrued expenses, an allowance for sales returns reserve of $ 1.9 million and $ 2.5 million as of July 3, 2022 and January 2, 2022 , respectively. Share-Based Compensation The Company accounts for its share-based compensation in accordance with ASC 718, Compensation—Stock Compensation . The Company recognizes compensation expense on a straight-line basis over the requisite service period using the fair-value method for share option awards, nonvested share awards and nonvested share unit awards granted with service-only conditions. See Note 10 to the Interim Financial Statements for a further discussion on share-based compensation. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments of excess cash into U.S. Treasury bills, which have original maturities of 90 days or less. See Note 3 to the Interim Financial Statements for a further discussion on the fair value of U.S. Treasury bills. Book overdrafts are classified as current liabilities in the Company’s interim unaudited condensed consolidated balance sheets. Valuation of Merchandise Inventories, Net The Company’s merchandise inventories are made up of finished goods and are valued at the lower of cost or net realizable value using the weighted-average cost method that approximates the first-in, first-out (“FIFO”) method. Average cost includes the direct purchase price of merchandise inventory, net of vendor allowances and cash discounts, in-bound freight-related expense and allocated overhead expense associated with the Company’s distribution center. Management regularly reviews inventories and records valuation reserves for damaged and defective merchandise, merchandise items with slow-moving or obsolescence exposure and merchandise that has a carrying value that exceeds net realizable value. Because of its merchandise mix, the Company has not historically experienced significant occurrences of obsolescence. Inventory shrinkage is accrued as a percentage of merchandise sales based on historical inventory shrinkage trends. The Company performs physical inventories of its stores at least once per year and cycle counts inventories at its distribution center throughout the year. The reserve for inventory shrinkage primarily represents an estimate for inventory shrinkage for each store since the last physical inventory date through the reporting date. These reserves are estimates, which could vary significantly, either favorably or unfavorably, from actual results if future economic conditions, consumer demand and competitive environments differ from expectations. Valuation of Long-Lived Assets In accordance with ASC 360, Property, Plant, and Equipment , the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Long-lived assets are reviewed for recoverability at the lowest level in which there are identifiable cash flows (“asset group”), usually at the store level. The carrying amount of a store asset group includes stores’ property and equipment, primarily leasehold improvements, and operating lease right-of-use (“ROU”) assets. The carrying amount of a store asset group is not considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the store asset group. Factors that could trigger an impairment review include a current-period operating or cash flow loss combined with a history of operating and cash flow losses, and a projection that demonstrates continuing losses or insufficient income over the remaining reasonably certain lease term associated with the use of a store asset group. Other factors may include an adverse change in the business climate or an adverse action or assessment by a regulator in the market of a store asset group. When stores are identified as having an indicator of impairment, the Company forecasts undiscounted cash flows over the store asset group’s remaining reasonably certain lease term and compares the undiscounted cash flows to the carrying amount of the store asset group. If the store asset group is determined not to be recoverable, then an impairment charge will be recognized in the amount by which the carrying amount of the store asset group exceeds its fair value, determined using discounted cash flow valuation techniques, as contemplated in ASC 820, Fair Value Measurements . The Company determines the cash flows expected to result from the store asset group by projecting future revenue, gross margin and operating expense for each store asset group under evaluation for impairment. The estimates of future cash flows involve management judgment and are based upon assumptions about expected future operating performance. Assumptions used in these forecasts are consistent with internal planning, and include assumptions about sales growth rates, gross margins and operating expense in relation to the current economic environment and the Company’s future expectations, competitive factors in its various markets, inflation, sales trends and other relevant environmental factors that may impact the store under evaluation. The actual cash flows could differ from management’s estimates due to changes in business conditions, operating performance and economic conditions. If economic conditions deteriorate in the markets in which the Company conducts business, or if other negative market conditions develop, the Company may experience additional impairment charges in the future for underperforming stores. The resulting impairment charge, if any, is allocated to the property and equipment, primarily leasehold improvements, and operating lease ROU assets on a pro rata basis using the relative carrying amounts of those assets. The allocated impairment charge to a long-lived asset is limited to the extent that the impairment charge does not reduce the carrying amount of the long-lived asset below its individual fair value. The estimation of the fair value of an ROU asset involves the evaluation of current market value rental amounts for leases associated with ROU assets. The estimates of current market value rental amounts are primarily based on recent observable market rental data of other comparable retail store locations. The fair value of an ROU asset is measured using a discounted cash flow valuation technique by discounting the estimated current and future market rental values using a property-specific discount rate. The Company did no t recognize any impairment charges in the first half of fiscal 2022 or 2021 . Leases In accordance with ASC 842, Leases , the Company determines if an arrangement is a lease at inception. The Company has operating and finance leases for the Company’s retail store facilities, distribution center, corporate offices, information technology hardware, and distribution center delivery tractors and equipment. Operating leases are included in operating lease ROU assets and operating lease liabilities, current and noncurrent, on the interim unaudited condensed consolidated balance sheets. Finance leases are included in property and equipment and finance lease liabilities, current and noncurrent, on the interim unaudited condensed consolidated balance sheets. Lease liabilities are calculated using the effective interest method, regardless of classification, while the amortization of ROU assets varies depending upon classification. Finance lease classification results in a front-loaded expense recognition pattern over the lease term which amortizes the ROU asset by recognizing interest expense and amortization expense as separate components of lease expense and calculates the amortization expense component on a straight-line basis. Conversely, operating lease classification results in a straight-line expense recognition pattern over the lease term and recognizes lease expense as a single expense component, which results in amortization of the ROU asset that equals the difference between lease expense and interest expense. Lease expense for finance and operating leases are included in cost of sales or selling and administrative expense, based on the use of the leased asset, on the interim unaudited condensed consolidated statements of operations. Variable payments such as property taxes, insurance and common area maintenance related to triple net leases, as well as certain equipment sales taxes, licenses, fees and repairs, are expensed as incurred, and leases with an initial term of 12 months or less are excluded from minimum lease payments and are not recorded on the interim unaudited condensed consolidated balance sheets. The Company recognizes variable lease expense for these short-term leases on a straight-line basis over the remaining lease term. ROU assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the reasonably certain lease term. As the Company’s leases generally do not provide an implicit rate, the Company uses a collateralized incremental borrowing rate (“IBR”) to determine the present value of lease payments. The collateralized IBR is based on a synthetic credit rating that is externally prepared on an annual basis. This analysis considers qualitative and quantitative factors based on guidance provided by a rating agency for the consumer durables industry. The Company adjusts the selected IBR quarterly with a company-specific unsecured yield curve that approximates the Company’s market risk profile. The collateralized IBR is also based upon the estimated impact that the collateral has on the IBR. To account for the collateralized nature of the IBR, the Company utilized a notching method based on notching guidance provided by a rating agency whereby the Company’s base credit rating is notched upward as the yield curve on a secured loan is expected to be lower versus an unsecured loan. The operating lease ROU asset also includes any prepaid lease payments made and is reduced by lease incentives such as tenant improvement allowances. The operating lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. Certain of the leases for the Company’s retail store facilities provide for payments based on future sales volumes at the leased location, which are not measurable at the inception of the lease. Under ASC 842, these contingent rents are expensed as they accrue. See Note 5 to the Interim Financial Statements for a further discussion on leases. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 03, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (3) Fair Value Measurements The carrying values of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate the fair values of these instruments due to their short-term nature. Cash equivalents consist of highly liquid investments of excess cash into U.S. Treasury bills, which have original maturities of 90 days or less. As of July 3, 2022 and January 2, 2022, the Company recorded $ 29.9 million and $ 75.0 million, respectively, in cash equivalents, and classified these assets as Level 1 inputs, which are quoted prices (unadjusted) in active markets for identical assets that the Company can access at the measurement date. The Company records these cash equivalents monthly, based on the prevailing market interest rate as of the measurement date. Book overdrafts for checks outstanding are classified as current liabilities in the Company’s interim unaudited condensed consolidated balance sheets. The carrying amount for borrowings, if any, under the Company’s credit facility approximates fair value because of the variable market interest rate charged to the Company for these borrowings. When the Company recognizes impairment on certain of its underperforming stores, the carrying values of these stores are reduced to their estimated fair values. The Company’s only significant assets or liabilities measured at fair value on a nonrecurring basis subsequent to their initial recognition were assets subject to long-lived asset impairment related to certain underperforming stores. The Company estimates the fair values of these long-lived assets based on the Company’s own judgments about the assumptions that market participants would use in pricing the asset and on observable real estate market data of underperforming stores’ specific comparable markets, when available. The Company classifies these fair value measurements as Level 3 inputs, which are unobservable inputs for which market data are not available and that are developed using the best information available about pricing assumptions used by market participants in accordance with ASC 820. As of July 3, 2022 and January 2, 2022 , there were no long-lived assets subject to impairment. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jul. 03, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | (4) Accrued Expenses The major components of accrued expenses are as follows: July 3, January 2, (In thousands) Payroll and related expense $ 27,774 $ 37,345 Occupancy expense 9,398 10,168 Sales tax 7,658 12,112 Other 23,365 25,416 Accrued expenses $ 68,195 $ 85,041 Payroll and related expense as of July 3, 2022 and January 2, 2022 reflected a deferral of the employer portion of Social Security tax provided by the U.S. Coronavirus Aid, Relief and Economic Security (“CARES”) Act, which allowed employers to defer their portion of the social security payroll tax otherwise due with respect to wages earned from March 27, 2020 through December 31, 2020. |
Lease Commitments
Lease Commitments | 6 Months Ended |
Jul. 03, 2022 | |
Leases [Abstract] | |
Lease Commitments | (5) Lease Commitments The Company has operating and finance leases for the Company’s retail store facilities, distribution center, corporate offices, information technology hardware, and distribution center delivery tractors and equipment, and accounts for these leases in accordance with ASC 842. Certain of the leases for the Company’s retail store facilities provide for variable payments for property taxes, insurance, common area maintenance payments related to triple net leases, rental payments based on future sales volumes at the leased location, as well as certain equipment sales taxes, licenses, fees and repairs, which are not measurable at the inception of the lease, or rental payments that are adjusted periodically for inflation. The Company recognizes variable lease expense for these leases in the period incurred which, for contingent rent, begins in the period in which it becomes probable that the specified target that triggers the variable lease payments will be achieved. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. In accordance with ASC 842, the components of lease expense were as follows: 13 Weeks Ended 26 Weeks Ended July 3, July 4, July 3, July 4, (In thousands) Lease expense: Operating lease expense $ 20,749 $ 20,384 $ 41,310 $ 40,720 Variable lease expense 4,881 4,711 9,504 9,203 Sublease income — — — ( 78 ) Operating lease expense 25,630 25,095 50,814 49,845 Amortization of right-of-use assets 900 720 1,802 1,369 Interest on lease liabilities 67 62 141 121 Finance lease expense 967 782 1,943 1,490 Total lease expense $ 26,597 $ 25,877 $ 52,757 $ 51,335 In accordance with ASC 842, other information related to leases was as follows: 26 Weeks Ended July 3, July 4, (In thousands) Operating cash flows from operating leases $ 43,300 $ 43,168 Financing cash flows from finance leases 1,899 1,559 Operating cash flows from finance leases 147 134 Cash paid for amounts included in the measurement of lease liabilities $ 45,346 $ 44,861 Right-of-use assets obtained in exchange for new finance lease liabilities $ 957 $ 4,652 Right-of-use assets obtained in exchange for new operating lease liabilities $ 58,624 $ 32,529 Weighted-average remaining lease term—finance leases 3.7 years 3.5 years Weighted-average remaining lease term—operating leases 5.1 years 4.8 years Weighted-average discount rate—finance leases 3.1 % 3.4 % Weighted-average discount rate—operating leases 4.9 % 5.6 % In accordance with ASC 842, maturities of finance and operating lease liabilities as of July 3, 2022 were as follows: Year Ending: Finance Operating (In thousands) 2022 (remaining six months) $ 1,970 $ 47,108 2023 2,737 78,567 2024 1,953 71,132 2025 1,470 53,984 2026 1,007 37,950 Thereafter 355 54,535 Undiscounted cash flows $ 9,492 $ 343,276 Reconciliation of lease liabilities: Weighted-average remaining lease term 3.7 years 5.1 years Weighted-average discount rate 3.1 % 4.9 % Present values $ 9,017 $ 304,636 Lease liabilities - current 3,481 77,421 Lease liabilities - long-term 5,536 227,215 Lease liabilities - total $ 9,017 $ 304,636 Difference between undiscounted and discounted cash flows $ 475 $ 38,640 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jul. 03, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (6) Long-Term Debt The Company, Big 5 Corp. and Big 5 Services Corp. were parties to a credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, and a syndicate of other lenders, as amended (the “Prior Credit Agreement”), which was terminated and replaced on February 24, 2021, as discussed below. On February 24, 2021, the Company entered into a Loan, Guaranty and Security Agreement with Bank of America, N.A. (“BofA”), as agent and lender, which was amended on November 22, 2021 (as so amended, the “Loan Agreement”). The Loan Agreement has a maturity date of February 24, 2026 and provides for a revolving credit facility with an aggregate committed availability of up to $ 150.0 million. The Company may also request additional increases in aggregate availability, up to a maximum of $ 200.0 million, in which case the existing lender under the Loan Agreement will have the option to increase the commitment to accommodate the requested increase. If such existing lender does not exercise that option, the Company may (with the consent of BofA in its role as the administrative agent, not to be unreasonably withheld) seek other lenders willing to provide such commitments. The credit facility includes a $ 50.0 million sublimit for issuances of letters of credit. Similar to the Prior Credit Agreement, the Company may borrow under the Loan Agreement from time to time, provided the amounts outstanding will not exceed the lesser of the then aggregate committed availability (as discussed above) and the Borrowing Base (such lesser amount being referred to as the “Line Cap”). As defined in the Loan Agreement, the “Borrowing Base” generally is comprised of the sum, at the time of calculation, of (a) 90.00 % of eligible credit card receivables; plus (b) the cost of eligible inventory (other than eligible in-transit inventory), net of inventory reserves, multiplied by 90.00 % of the appraised net orderly liquidation value of eligible inventory (expressed as a percentage of the cost of eligible inventory); plus (c) the cost of eligible in-transit inventory, net of inventory reserves, multiplied by 90.00 % of the appraised net orderly liquidation value of eligible in-transit inventory (expressed as a percentage of the cost of eligible in-transit inventory), minus (d) certain agreed-upon reserves as well as other reserves established by BofA in its role as the administrative agent in its reasonable discretion. Generally, the Company may designate specific borrowings under the Loan Agreement as either base rate loans or LIBO rate loans. The applicable interest rate on the Company’s borrowings is a function of the daily average, over the preceding fiscal quarter, of the excess of the Line Cap over amounts borrowed (such amount being referred to as the “Average Daily Availability”). Those loans designated as LIBO rate loans bear interest at a rate equal to the then applicable adjusted LIBO rate plus an applicable margin as shown in the table below. Those loans designated as base rate loans bear interest at a rate equal to the applicable margin for base rate loans (as shown below) plus the highest of (a) the Federal funds rate, as in effect from time to time, plus one-half of one percent ( 0.50 %), (b) the LIBO rate, plus one percentage point ( 1.00 %), or (c) the rate of interest in effect for such day as announced from time to time within BofA as its “prime rate.” As amended, the Loan Agreement provides for a transition to an alternative benchmark reference rate following the cessation of the LIBO rate. The applicable margin for all loans is a function of Average Daily Availability for the preceding fiscal quarter as set forth below. Level Average Daily Availability LIBO Rate Margin Base Rate I Greater than or equal to $70,000,000 1.375 % 0.375 % II Less than $70,000,000 1.500 % 0.500 % The commitment fee assessed on the unused portion of the credit facility is 0.20 % per annum. Obligations under the Loan Agreement are secured by a general lien on and security interest in substantially all of the Company’s assets. The Loan Agreement contains covenants that require the Company to maintain a fixed charge coverage ratio of not less than 1.0 :1.0 in certain circumstances, and limits the ability to, among other things, incur liens, incur additional indebtedness, transfer or dispose of assets, change the nature of the business, guarantee obligations, pay dividends or make other distributions or repurchase stock, and make advances, loans or investments. The Company may generally declare or pay cash dividends or repurchase stock only if, among other things, no default or event of default then exists or would arise from such dividend or repurchase of stock and, after giving effect to such dividend or repurchase, certain availability and/or fixed charge coverage ratio requirements are satisfied, although the Company is permitted to make up to $ 5.0 million of dividend payments or stock repurchases per year without satisfaction of the availability or fixed charge coverage ratio requirements, but dividends or stock repurchases made without satisfying the availability and/or fixed charge coverage ratio requirements will require the establishment of an additional reserve that will reduce borrowing availability under the Loan Agreement for 75 days. The Loan Agreement contains customary events of default, including, without limitation, failure to pay when due principal amounts with respect to the credit facility, failure to pay any interest or other amounts under the credit facility, failure to comply with certain agreements or covenants contained in the Loan Agreement, failure to satisfy certain judgments against the Company, failure to pay when due (or any other default which permits the acceleration of) certain other material indebtedness in principal amount in excess of $ 5.0 million, and certain insolvency and bankruptcy events. In the first quarter of fiscal 2021, the Company paid and capitalized $ 0.7 million in new creditor and third-party fees associated with the Loan Agreement, which is amortized over the term of the Loan Agreement, and extinguished $ 0.2 million of deferred financing fees associated with the Prior Credit Agreement. As of July 3, 2022 and January 2, 2022 , the Company had no long-term revolving credit borrowings outstanding. As of July 3, 2022 and January 2, 2022, the Company had letter of credit commitments of $ 1.1 million outstanding. Total remaining borrowing availability, after subtracting letters of credit, was $ 148.9 million as of July 3, 2022 and January 2, 2022 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 03, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) Income Taxes Under the asset and liability method prescribed under ASC 740, Income Taxes , the Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The realizability of deferred tax assets is assessed throughout the year and a valuation allowance is recorded, if necessary, to reduce net deferred tax assets to the amount more likely than not to be realized. As of July 3, 2022 and January 2, 2022, the Company had a valuation allowance for deferred income tax assets of $ 0.3 million related to unused California Enterprise Zone Tax Credits, which the Company will no longer be able to carry forward beyond 2024 as a result of California’s termination of this program. The Company files a consolidated federal income tax return and files tax returns in various state and local jurisdictions. The statutes of limitations for consolidated federal income tax returns are open for fiscal years 2018 and after, and state and local income tax returns are open for fiscal years 2017 and after. The provision for income taxes for the 26 weeks ended July 4, 2021 reflected a $ 0.3 million favorable reduction of the Company’s previously established valuation allowance related to unused California Enterprise Zone Tax Credits and a $ 0.2 million disaster recovery credit related to fires in California. As of July 3, 2022 and January 2, 2022 , the Company had no unrecognized tax benefits including those that, if recognized, would affect the Company’s effective income tax rate over the next 12 months . The Company’s policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expense. As of July 3, 2022 and January 2, 2022 , the Company had no accrued interest or penalties. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jul. 03, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (8) Earnings Per Share The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share , which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share is calculated by dividing net income by the weighted-average shares of common stock outstanding, reduced by shares repurchased and held in treasury, during the period. Diluted earnings per share represents basic earnings per share adjusted to include the potentially dilutive effect of outstanding share option awards, nonvested share awards and nonvested share unit awards. During periods of net loss, diluted loss per share is equal to basic loss per share because the antidilutive effect of potential common shares is disregarded. The following table sets forth the computation of basic and diluted earnings per common share: 13 Weeks Ended 26 Weeks Ended July 3, July 4, July 3, July 4, (In thousands, except per share data) Net income $ 8,934 $ 36,803 $ 18,037 $ 58,349 Weighted-average shares of common stock Basic 21,675 21,746 21,677 21,582 Dilutive effect of common stock 364 847 520 925 Diluted 22,039 22,593 22,197 22,507 Basic earnings per share $ 0.41 $ 1.69 $ 0.83 $ 2.70 Diluted earnings per share $ 0.41 $ 1.63 $ 0.81 $ 2.59 Antidilutive share option awards excluded 14 — 12 12 Antidilutive nonvested share and nonvested 403 4 — 2 The computation of diluted earnings per share for the 13 and 26 weeks ended July 3, 2022, and the 26 weeks ended July 4, 2021 , excludes certain share option awards that were outstanding and antidilutive (i.e., including such share option awards would result in higher earnings per share), since the exercise prices of these share option awards exceeded the average market price of the Company’s common shares. No share option awards were antidilutive for the 13 weeks ended July 4, 2021. The computation of diluted earnings per share for the 13 weeks ended July 3, 2022, and the 13 and 26 weeks ended July 4, 2021 , excludes certain nonvested share awards and nonvested share unit awards that were outstanding and antidilutive, since the grant date fair values of these nonvested share awards and nonvested share unit awards exceeded the average market price of the Company’s common shares. No nonvested share awards or nonvested share unit awards were antidilutive for the 26 weeks ended July 3, 2022 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 03, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (9) Commitments and Contingencies Recovery of Insurance Proceeds In the second quarter of fiscal 2020, seven of the Company’s stores were damaged and qualified for loss recovery claims as a result of civil unrest, and the Company disposed of assets of approximately $ 0.6 million related to lost inventory and property and equipment. In the first quarter of fiscal 2021, the Company reached an agreement with its insurance carrier and, after application of a deductible of $ 0.3 million, the Company received a cash insurance recovery of $ 1.3 million in total, of which $ 1.0 million related to the reimbursement of lost inventory and profit margin, $ 0.2 million related to the reimbursement of property and equipment, and $ 0.1 million related to a reimbursement for business interruption. Accordingly, the Company recognized gains of $ 0.5 million related to the recovery of lost profit margin and business interruption, and $ 0.2 million related to the recovery of property and equipment. The gain related to the recovery of lost profit margin and business interruption is included in the accompanying consolidated statement of operations as a reduction to cost of goods sold, and the gain related to the recovery of lost property and equipment is included in the accompanying consolidated statement of operations as a reduction to selling and administrative expense for fiscal 2021. The Company is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters is not expected to have a material effect on the Company’s results of operations, financial condition or cash flows. |
Share-based Compensation
Share-based Compensation | 6 Months Ended |
Jul. 03, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | (10) Share-based Compensation In June 2022, the Company amended and restated its 2019 Equity Incentive Plan (the “2019 Plan”), primarily authorizing an additional 3,300,000 shares available for future grant, which were not registered as of July 3, 2022. As of July 3, 2022, 1,052,734 shares remained registered and available for future grant under the 2019 Plan. At its discretion, the Company grants share option awards, nonvested share awards and nonvested share unit awards to certain employees, as defined by ASC 718, Compensation—Stock Compensation , under the Company’s 2019 Plan, and accounts for its share-based compensation in accordance with ASC 718. The Company recognized $ 0.6 and $ 1.2 million in share-based compensation expense for the 13 and 26 weeks ended July 3, 2022 , respectively, compared to $ 0.5 million and $ 0.9 million in share-based compensation expense for the 13 and 26 weeks ended July 4, 2021, respectively. Share Option Awards Share option awards granted by the Company generally vest and become exercisable in four equal annual installments of 25 % per year with a maximum life of ten years . The exercise price of share option awards is equal to the quoted market price of the Company’s common stock on the date of grant. The Company granted 10,000 share option awards in the first half of fiscal 2022 with a weighted-average grant-date fair value of $ 5.46 per share option award . No share option awards were granted in the first half of fiscal 2021. A summary of the status of the Company’s share option awards is presented below: Shares Weighted- Weighted- Aggregate Outstanding at January 2, 2022 383,035 $ 3.96 Granted 10,000 13.35 Exercised ( 67,750 ) 4.03 Forfeited ( 9,600 ) 2.81 Outstanding at July 3, 2022 315,685 $ 4.27 7.01 $ 2,287,308 Exercisable at July 3, 2022 114,059 $ 4.11 6.01 $ 787,493 Vested and Expected to Vest at July 3, 2022 314,718 $ 4.27 7.00 $ 2,281,141 The aggregate intrinsic value represents the total pretax intrinsic value, based upon the Company’s most recent closing stock price of $ 11.01 as of July 3, 2022, which would have been received by the share option award holders had all share option award holders exercised their share option awards as of that date. The fair value of each share option award on the date of grant is estimated using the Black-Scholes method based on the following weighted-average assumptions: 13 Weeks Ended 26 Weeks Ended July 3, July 4, July 3, July 4, Risk-free interest rate 2.7 % — 2.7 % — Expected term 6.5 years — 6.5 years — Expected volatility 80.8 % — 80.8 % — Expected dividend yield 7.4 % — 7.4 % — The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected term of the option award; the expected term represents the weighted-average period of time that option awards granted are expected to be outstanding giving consideration to vesting schedules and historical participant exercise behavior; the expected volatility is based upon historical volatility of the Company’s common stock; and the expected dividend yield is based upon the Company’s dividend rate at the time fair value is measured and future expectations. As of July 3, 2022, there was $ 0.3 million of total unrecognized compensation expense related to share option awards granted. That expense is expected to be recognized over a weighted-average period of 1.6 years. Nonvested Share Awards and Nonvested Share Unit Awards Nonvested share awards granted by the Company vest for employees from the date of grant in four equal annual installments of 25 % per year. Nonvested share awards and nonvested share unit awards granted by the Company to non-employee directors for their service as directors, as defined by ASC 718, generally vest 100 % on the earlier of (a) the date of the Company’s next annual stockholders meeting following the grant date, or (b) the first anniversary of the grant date. Nonvested share awards become outstanding when granted and are delivered to the recipient upon their vesting. Vested share unit awards, including any dividend reinvestments, are delivered to the recipient on the tenth business day of January following the year in which the recipient’s service to the Company is terminated, at which time the units convert to shares and become outstanding. The total fair value of nonvested share awards which vested during the first half of fiscal 2022 and 2021 was $ 3.3 million and $ 5.3 million, respectively. No nonvested share unit awards vested during the first half of fiscal 2022. The total fair value of nonvested share unit awards which vested in the first half of fiscal 2021 was $ 0.1 million. On January 14, 2022, the Company delivered 124,012 shares outstanding on previously vested share unit awards, which included dividend reinvestments, to a former Board member who retired in November 2021. The Company granted 284,630 and 248,550 nonvested share awards in the first half of fiscal 2022 and 2021, respectively. The weighted-average grant-date fair value per share of the Company’s nonvested share awards granted in the first half of fiscal 2022 and 2021 was $ 15.03 and $ 15.61 , respectively. A summary of the status of the Company’s nonvested share awards is presented below: Shares Weighted- Balance at January 2, 2022 551,700 $ 8.51 Granted 284,630 15.03 Vested ( 216,700 ) 8.19 Forfeited ( 25,210 ) 11.19 Balance at July 3, 2022 594,420 $ 11.64 To satisfy employee minimum statutory tax withholding requirements for nonvested share awards that vest, the Company withholds and retires a portion of the vesting common shares, unless an employee elects to pay cash. In the first half of fiscal 2022 , the Company withheld 77,340 common shares with a total value of $ 1.2 million. This amount is presented as a cash outflow from financing activities in the accompanying interim unaudited condensed consolidated statement of cash flows. As of July 3, 2022, there was $ 6.1 million of total unrecognized compensation expense related to nonvested share awards, which is expected to be recognized over a weighted-average period of 2.7 years. As of July 3, 2022 , there was no remaining unrecognized compensation expense related to nonvested share unit awards. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 03, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | (11) Subsequent Events On July 28, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $ 0.25 per share of outstanding common stock, which will be paid on September 15, 2022 to stockholders of record as of September 1, 2022 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 03, 2022 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation The accompanying Interim Financial Statements include the accounts of Big 5 Sporting Goods Corporation, Big 5 Corp. and Big 5 Services Corp. Intercompany balances and transactions have been eliminated in consolidation. |
Reporting Period | Reporting Period The Company follows the concept of a 52 - 53 week fiscal year, which ends on the Sunday nearest December 31. Fiscal year 2022 is comprised of 52 weeks and ends on January 1, 2023. Fiscal year 2021 was comprised of 52 weeks and ended on January 2, 2022. The interim periods in fiscal 2022 and 2021 are each comprised of 13 weeks. |
Recently Issued Accounting Updates | Recently Issued Accounting Updates In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This standard provides optional guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this standard apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The amendments in this standard are elective and are effective upon issuance for all entities, and the impact from this standard is expected to be immaterial. Other recently issued accounting updates are not expected to have a material impact on the Company’s Interim Financial Statements. |
COVID-19 Impact on Concentration of Risk | COVID-19 Impact on Concentration of Risk In recent years, the novel coronavirus (“COVID-19”) pandemic has significantly impacted health and economic conditions throughout the United States and globally, as public concern about becoming ill with the virus has led to the issuance of recommendations and/or mandates from federal, state and local authorities to practice social distancing or self-quarantine. At the start of the COVID-19 pandemic in fiscal 2020, the Company was forced to temporarily close more than half of its retail store locations and was subsequently able to gradually reopen these stores. In the first quarter of fiscal 2021, the Company experienced a limited number of temporary store closures throughout the chain resulting from COVID-19 outbreaks. Store operating hours in the second quarter of fiscal 2022 were negatively impacted by a resurgence of COVID-related cases that led to quarantining of employees of certain stores throughout the chain. As the pandemic continues to evolve, the Company may be further required to restrict the operations of its stores or distribution center if it is deemed necessary or if recommended or mandated by authorities. A substantial amount of the Company’s inventory is manufactured abroad. COVID-19 has also impacted the Company’s supply chain for products sold, particularly those products that are sourced from Asia. To the extent one or more vendors is negatively impacted by continued supply chain disruptions or by COVID-19, including due to interruptions at or closure of those vendors’ distribution centers or manufacturing facilities, or the Company or its vendors are unable to obtain the necessary shipping capacity to transport products to the Company’s distribution center, the Company may be unable to maintain delivery schedules or adequate inventory in its stores. During the second half of fiscal 2021, and continuing into the first half of fiscal 2022, the Company experienced significant shipping delays of products sourced from overseas vendors to be received at the Ports of Los Angeles and Long Beach, which reflected increased shipping volume and insufficient labor resources at the ports that have significantly increased cargo backlogs. While our ability to obtain product has begun to improve, these factors, in addition to workforce shortages in the trucking industry, have limited the Company’s ability to obtain desired quantities of inventory for various merchandise categories. While the Company has generally been able to sufficiently stock product in its stores to meet most consumer demand during the pandemic, future prolonged and sustained delays in product reaching the Company’s stores from overseas vendors, particularly during the holiday season, could result in the inability to obtain adequate levels of merchandise inventories to meet consumers’ needs, which could have an adverse impact on net sales and profitability. General Concentration of Risk The Company purchases merchandise from over 700 suppliers, and the Company’s 20 largest suppliers accounted for 36.8 % of total purchases in fiscal 2021. One vendor, Nike, represented greater than 5 % of total purchases, at 7.6 %, in fiscal 2021 and accounted for 8.7 % of the Company’s total sales in fiscal 2021. In early fiscal 2021, the Company was informed of an expansion of Nike’s direct-to-consumer initiatives that impacted certain multi-branded retailers, including the Company. This has led to a significant reduction in the Company’s supply chain relative to this vendor. Although the Company is no longer purchasing products directly from Nike, the Company expects to continue to purchase certain Nike branded products from authorized licensees. The Company has been actively expanding its relationships with other new and existing vendors in an effort to replace the affected Nike product within its product mix, which has been hampered in some instances by vendor supply chain challenges. A substantial amount of the Company’s inventory is manufactured abroad, and shipping ports may experience capacity constraints (such as delays associated with COVID-19), labor strikes, work stoppages or other disruptions that may delay the delivery of imported products. A contract dispute may lead to protracted delays in the movement of the Company’s products, which could further delay the delivery of products to the Company’s stores and impact net sales and profitability. In addition, other conditions outside of the Company’s control, such as adverse weather conditions or acts of terrorism or war, such as the current conflict in Ukraine, could significantly disrupt operations at shipping ports or otherwise impact transportation of the imported merchandise we sell, either through supply chain disruptions, or rising freight and fuel costs. |
Use of Estimates | Use of Estimates Management makes a number of estimates and assumptions relating to the reporting of assets, liabilities and stockholders’ equity and the disclosure of contingent assets and liabilities at the date of the Interim Financial Statements and reported amounts of revenue and expense during the reporting period to prepare these Interim Financial Statements in conformity with GAAP. Certain items subject to such estimates and assumptions include the carrying amount of merchandise inventories, property and equipment, lease assets and lease liabilities; valuation allowances for receivables, sales returns and deferred income tax assets; estimates related to stored-value cards and the valuation of share-based compensation awards; and obligations related to litigation, self-insurance liabilities and employee benefits. Due to the inherent uncertainty involved in making assumptions and estimates, events and changes in circumstances arising after July 3, 2022 , including those resulting from the impacts of future COVID-19 variant outbreaks, may result in actual outcomes that differ from those contemplated by management’s assumptions and estimates. |
Revenue Recognition | Revenue Recognition The Company operates solely as a sporting goods retailer, which includes both retail stores and an e-commerce platform, that offers a broad range of products in the western United States and online. Generally, all revenue is recognized when control of the promised goods is transferred to customers, for an amount that reflects the consideration in exchange for those goods. Accordingly, the Company implicitly enters into a contract with customers to deliver merchandise inventory at the point of sale. Collectability is probable since the Company only extends immaterial credit purchases to certain municipalities and local school districts. In accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers , the Company disaggregates net sales into the following major merchandise categories to depict the nature and amount of revenue and related cash flows: 13 Weeks Ended 26 Weeks Ended July 3, July 4, July 3, July 4, (In thousands) Hardgoods $ 149,392 $ 196,721 $ 270,357 $ 337,627 Athletic and sport footwear 60,622 71,561 123,389 138,235 Athletic and sport apparel 43,111 57,146 99,684 120,672 Other sales 675 592 2,351 2,292 Net sales $ 253,800 $ 326,020 $ 495,781 $ 598,826 Substantially all of the Company’s revenue is for single performance obligations for the following distinct items: • Retail store sales • E-commerce sales • Stored-value cards For performance obligations related to retail store and e-commerce sales contracts, the Company typically transfers control, for retail stores, upon consummation of the sale when the product is paid for and taken by the customer and, for e-commerce sales, when the product is tendered for delivery to the common carrier. For performance obligations related to stored-value cards, the Company typically transfers control upon redemption of the stored-value card through consummation of a future sales transaction. The Company accounts for shipping and handling relative to e-commerce sales as fulfillment activities, and not a separate performance obligation. Accordingly, the Company recognizes revenue for only one performance obligation, the sale of the product, at shipping point (when the customer gains control). Revenue associated with e-commerce sales was not material for the 13 and 26 weeks ended July 3, 2022 and July 4, 2021. The Company recognized $ 1.5 million and $ 3.3 million in stored-value card redemption revenue for the 13 and 26 weeks ended July 3, 2022 , respectively, compared to $ 1.5 million and $ 3.2 million in stored-value card redemption revenue for the 13 and 26 weeks ended July 4, 2021, respectively. The Company also recognized $ 0.1 million and $ 0.2 million in stored-value card breakage revenue for the 13 and 26 weeks ended July 3, 2022 , respectively, compared to $ 0.1 million and $ 0.2 million in stored-value card breakage revenue for the 13 and 26 weeks ended July 4, 2021, respectively. The Company had outstanding stored-value card liabilities of $ 7.8 million and $ 8.3 million as of July 3, 2022 and January 2, 2022 , respectively, which are included in accrued expenses in the accompanying interim unaudited condensed consolidated balance sheets. Based upon historical experience, stored-value cards are predominantly redeemed in the first two years following their issuance date. In the accompanying interim unaudited condensed consolidated balance sheets, the Company recorded, as prepaid expense, estimated right-of-return merchandise cost of $ 0.9 million and $ 1.2 million related to estimated sales returns as of July 3, 2022 and January 2, 2022, respectively, and recorded, in accrued expenses, an allowance for sales returns reserve of $ 1.9 million and $ 2.5 million as of July 3, 2022 and January 2, 2022 , respectively. |
Share-Based Compensation | Share-Based Compensation The Company accounts for its share-based compensation in accordance with ASC 718, Compensation—Stock Compensation . The Company recognizes compensation expense on a straight-line basis over the requisite service period using the fair-value method for share option awards, nonvested share awards and nonvested share unit awards granted with service-only conditions. See Note 10 to the Interim Financial Statements for a further discussion on share-based compensation. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments of excess cash into U.S. Treasury bills, which have original maturities of 90 days or less. See Note 3 to the Interim Financial Statements for a further discussion on the fair value of U.S. Treasury bills. Book overdrafts are classified as current liabilities in the Company’s interim unaudited condensed consolidated balance sheets. |
Valuation of Merchandise Inventories, Net | Valuation of Merchandise Inventories, Net The Company’s merchandise inventories are made up of finished goods and are valued at the lower of cost or net realizable value using the weighted-average cost method that approximates the first-in, first-out (“FIFO”) method. Average cost includes the direct purchase price of merchandise inventory, net of vendor allowances and cash discounts, in-bound freight-related expense and allocated overhead expense associated with the Company’s distribution center. Management regularly reviews inventories and records valuation reserves for damaged and defective merchandise, merchandise items with slow-moving or obsolescence exposure and merchandise that has a carrying value that exceeds net realizable value. Because of its merchandise mix, the Company has not historically experienced significant occurrences of obsolescence. Inventory shrinkage is accrued as a percentage of merchandise sales based on historical inventory shrinkage trends. The Company performs physical inventories of its stores at least once per year and cycle counts inventories at its distribution center throughout the year. The reserve for inventory shrinkage primarily represents an estimate for inventory shrinkage for each store since the last physical inventory date through the reporting date. These reserves are estimates, which could vary significantly, either favorably or unfavorably, from actual results if future economic conditions, consumer demand and competitive environments differ from expectations. |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets In accordance with ASC 360, Property, Plant, and Equipment , the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Long-lived assets are reviewed for recoverability at the lowest level in which there are identifiable cash flows (“asset group”), usually at the store level. The carrying amount of a store asset group includes stores’ property and equipment, primarily leasehold improvements, and operating lease right-of-use (“ROU”) assets. The carrying amount of a store asset group is not considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the store asset group. Factors that could trigger an impairment review include a current-period operating or cash flow loss combined with a history of operating and cash flow losses, and a projection that demonstrates continuing losses or insufficient income over the remaining reasonably certain lease term associated with the use of a store asset group. Other factors may include an adverse change in the business climate or an adverse action or assessment by a regulator in the market of a store asset group. When stores are identified as having an indicator of impairment, the Company forecasts undiscounted cash flows over the store asset group’s remaining reasonably certain lease term and compares the undiscounted cash flows to the carrying amount of the store asset group. If the store asset group is determined not to be recoverable, then an impairment charge will be recognized in the amount by which the carrying amount of the store asset group exceeds its fair value, determined using discounted cash flow valuation techniques, as contemplated in ASC 820, Fair Value Measurements . The Company determines the cash flows expected to result from the store asset group by projecting future revenue, gross margin and operating expense for each store asset group under evaluation for impairment. The estimates of future cash flows involve management judgment and are based upon assumptions about expected future operating performance. Assumptions used in these forecasts are consistent with internal planning, and include assumptions about sales growth rates, gross margins and operating expense in relation to the current economic environment and the Company’s future expectations, competitive factors in its various markets, inflation, sales trends and other relevant environmental factors that may impact the store under evaluation. The actual cash flows could differ from management’s estimates due to changes in business conditions, operating performance and economic conditions. If economic conditions deteriorate in the markets in which the Company conducts business, or if other negative market conditions develop, the Company may experience additional impairment charges in the future for underperforming stores. The resulting impairment charge, if any, is allocated to the property and equipment, primarily leasehold improvements, and operating lease ROU assets on a pro rata basis using the relative carrying amounts of those assets. The allocated impairment charge to a long-lived asset is limited to the extent that the impairment charge does not reduce the carrying amount of the long-lived asset below its individual fair value. The estimation of the fair value of an ROU asset involves the evaluation of current market value rental amounts for leases associated with ROU assets. The estimates of current market value rental amounts are primarily based on recent observable market rental data of other comparable retail store locations. The fair value of an ROU asset is measured using a discounted cash flow valuation technique by discounting the estimated current and future market rental values using a property-specific discount rate. The Company did no t recognize any impairment charges in the first half of fiscal 2022 or 2021 . |
Leases | Leases In accordance with ASC 842, Leases , the Company determines if an arrangement is a lease at inception. The Company has operating and finance leases for the Company’s retail store facilities, distribution center, corporate offices, information technology hardware, and distribution center delivery tractors and equipment. Operating leases are included in operating lease ROU assets and operating lease liabilities, current and noncurrent, on the interim unaudited condensed consolidated balance sheets. Finance leases are included in property and equipment and finance lease liabilities, current and noncurrent, on the interim unaudited condensed consolidated balance sheets. Lease liabilities are calculated using the effective interest method, regardless of classification, while the amortization of ROU assets varies depending upon classification. Finance lease classification results in a front-loaded expense recognition pattern over the lease term which amortizes the ROU asset by recognizing interest expense and amortization expense as separate components of lease expense and calculates the amortization expense component on a straight-line basis. Conversely, operating lease classification results in a straight-line expense recognition pattern over the lease term and recognizes lease expense as a single expense component, which results in amortization of the ROU asset that equals the difference between lease expense and interest expense. Lease expense for finance and operating leases are included in cost of sales or selling and administrative expense, based on the use of the leased asset, on the interim unaudited condensed consolidated statements of operations. Variable payments such as property taxes, insurance and common area maintenance related to triple net leases, as well as certain equipment sales taxes, licenses, fees and repairs, are expensed as incurred, and leases with an initial term of 12 months or less are excluded from minimum lease payments and are not recorded on the interim unaudited condensed consolidated balance sheets. The Company recognizes variable lease expense for these short-term leases on a straight-line basis over the remaining lease term. ROU assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the reasonably certain lease term. As the Company’s leases generally do not provide an implicit rate, the Company uses a collateralized incremental borrowing rate (“IBR”) to determine the present value of lease payments. The collateralized IBR is based on a synthetic credit rating that is externally prepared on an annual basis. This analysis considers qualitative and quantitative factors based on guidance provided by a rating agency for the consumer durables industry. The Company adjusts the selected IBR quarterly with a company-specific unsecured yield curve that approximates the Company’s market risk profile. The collateralized IBR is also based upon the estimated impact that the collateral has on the IBR. To account for the collateralized nature of the IBR, the Company utilized a notching method based on notching guidance provided by a rating agency whereby the Company’s base credit rating is notched upward as the yield curve on a secured loan is expected to be lower versus an unsecured loan. The operating lease ROU asset also includes any prepaid lease payments made and is reduced by lease incentives such as tenant improvement allowances. The operating lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. Certain of the leases for the Company’s retail store facilities provide for payments based on future sales volumes at the leased location, which are not measurable at the inception of the lease. Under ASC 842, these contingent rents are expensed as they accrue. See Note 5 to the Interim Financial Statements for a further discussion on leases. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jul. 03, 2022 | |
Accounting Policies [Abstract] | |
Summary of Disaggregates Net Sales into Major Merchandise Categories to Depict Nature and Amount of Revenue and Related Cash Flows | In accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers , the Company disaggregates net sales into the following major merchandise categories to depict the nature and amount of revenue and related cash flows: 13 Weeks Ended 26 Weeks Ended July 3, July 4, July 3, July 4, (In thousands) Hardgoods $ 149,392 $ 196,721 $ 270,357 $ 337,627 Athletic and sport footwear 60,622 71,561 123,389 138,235 Athletic and sport apparel 43,111 57,146 99,684 120,672 Other sales 675 592 2,351 2,292 Net sales $ 253,800 $ 326,020 $ 495,781 $ 598,826 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jul. 03, 2022 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses | The major components of accrued expenses are as follows: July 3, January 2, (In thousands) Payroll and related expense $ 27,774 $ 37,345 Occupancy expense 9,398 10,168 Sales tax 7,658 12,112 Other 23,365 25,416 Accrued expenses $ 68,195 $ 85,041 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 6 Months Ended |
Jul. 03, 2022 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | In accordance with ASC 842, the components of lease expense were as follows: 13 Weeks Ended 26 Weeks Ended July 3, July 4, July 3, July 4, (In thousands) Lease expense: Operating lease expense $ 20,749 $ 20,384 $ 41,310 $ 40,720 Variable lease expense 4,881 4,711 9,504 9,203 Sublease income — — — ( 78 ) Operating lease expense 25,630 25,095 50,814 49,845 Amortization of right-of-use assets 900 720 1,802 1,369 Interest on lease liabilities 67 62 141 121 Finance lease expense 967 782 1,943 1,490 Total lease expense $ 26,597 $ 25,877 $ 52,757 $ 51,335 |
Schedule of Other Information Related To Leases | In accordance with ASC 842, other information related to leases was as follows: 26 Weeks Ended July 3, July 4, (In thousands) Operating cash flows from operating leases $ 43,300 $ 43,168 Financing cash flows from finance leases 1,899 1,559 Operating cash flows from finance leases 147 134 Cash paid for amounts included in the measurement of lease liabilities $ 45,346 $ 44,861 Right-of-use assets obtained in exchange for new finance lease liabilities $ 957 $ 4,652 Right-of-use assets obtained in exchange for new operating lease liabilities $ 58,624 $ 32,529 Weighted-average remaining lease term—finance leases 3.7 years 3.5 years Weighted-average remaining lease term—operating leases 5.1 years 4.8 years Weighted-average discount rate—finance leases 3.1 % 3.4 % Weighted-average discount rate—operating leases 4.9 % 5.6 % |
Schedule of Maturities For Finance And Operating Leases | In accordance with ASC 842, maturities of finance and operating lease liabilities as of July 3, 2022 were as follows: Year Ending: Finance Operating (In thousands) 2022 (remaining six months) $ 1,970 $ 47,108 2023 2,737 78,567 2024 1,953 71,132 2025 1,470 53,984 2026 1,007 37,950 Thereafter 355 54,535 Undiscounted cash flows $ 9,492 $ 343,276 Reconciliation of lease liabilities: Weighted-average remaining lease term 3.7 years 5.1 years Weighted-average discount rate 3.1 % 4.9 % Present values $ 9,017 $ 304,636 Lease liabilities - current 3,481 77,421 Lease liabilities - long-term 5,536 227,215 Lease liabilities - total $ 9,017 $ 304,636 Difference between undiscounted and discounted cash flows $ 475 $ 38,640 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jul. 03, 2022 | |
Loan, Guaranty and Security Agreement [Member] | |
Average Daily Excess Availability for Preceding Fiscal Quarter | Level Average Daily Availability LIBO Rate Margin Base Rate I Greater than or equal to $70,000,000 1.375 % 0.375 % II Less than $70,000,000 1.500 % 0.500 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jul. 03, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share: 13 Weeks Ended 26 Weeks Ended July 3, July 4, July 3, July 4, (In thousands, except per share data) Net income $ 8,934 $ 36,803 $ 18,037 $ 58,349 Weighted-average shares of common stock Basic 21,675 21,746 21,677 21,582 Dilutive effect of common stock 364 847 520 925 Diluted 22,039 22,593 22,197 22,507 Basic earnings per share $ 0.41 $ 1.69 $ 0.83 $ 2.70 Diluted earnings per share $ 0.41 $ 1.63 $ 0.81 $ 2.59 Antidilutive share option awards excluded 14 — 12 12 Antidilutive nonvested share and nonvested 403 4 — 2 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 6 Months Ended |
Jul. 03, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Share Option Awards | A summary of the status of the Company’s share option awards is presented below: Shares Weighted- Weighted- Aggregate Outstanding at January 2, 2022 383,035 $ 3.96 Granted 10,000 13.35 Exercised ( 67,750 ) 4.03 Forfeited ( 9,600 ) 2.81 Outstanding at July 3, 2022 315,685 $ 4.27 7.01 $ 2,287,308 Exercisable at July 3, 2022 114,059 $ 4.11 6.01 $ 787,493 Vested and Expected to Vest at July 3, 2022 314,718 $ 4.27 7.00 $ 2,281,141 |
Weighted-Average Assumptions Used to Estimate the Fair Value of Each Share Option Award | The fair value of each share option award on the date of grant is estimated using the Black-Scholes method based on the following weighted-average assumptions: 13 Weeks Ended 26 Weeks Ended July 3, July 4, July 3, July 4, Risk-free interest rate 2.7 % — 2.7 % — Expected term 6.5 years — 6.5 years — Expected volatility 80.8 % — 80.8 % — Expected dividend yield 7.4 % — 7.4 % — |
Summary of Nonvested Share Awards Activity | A summary of the status of the Company’s nonvested share awards is presented below: Shares Weighted- Balance at January 2, 2022 551,700 $ 8.51 Granted 284,630 15.03 Vested ( 216,700 ) 8.19 Forfeited ( 25,210 ) 11.19 Balance at July 3, 2022 594,420 $ 11.64 |
Description of Business - Addit
Description of Business - Additional Information (Detail) | 6 Months Ended |
Jul. 03, 2022 ft² Segment Store | |
Description Of Business [Line Items] | |
Number of operating stores | Store | 431 |
Area of traditional sporting goods store | ft² | 11,000 |
Number of reportable segment | Segment | 1 |
Big 5 Corp [Member] | |
Description Of Business [Line Items] | |
Subsidiary interest ownership percentage | 100% |
Big 5 Service Corp [Member] | Big 5 Corp [Member] | |
Description Of Business [Line Items] | |
Subsidiary interest ownership percentage | 100% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 03, 2022 USD ($) | Jul. 04, 2021 USD ($) | Jul. 03, 2022 USD ($) | Jul. 04, 2021 USD ($) | Jan. 02, 2022 USD ($) Supplier | Jan. 03, 2021 | |
Accounting Policies [Line Items] | ||||||
Reporting period, minimum | 364 days | |||||
Reporting period, maximum | 371 days | |||||
Interim reporting periods | 91 days | 91 days | ||||
Concentration risk, suppliers | Supplier | 700 | |||||
Concentration risk, largest supplier | Supplier | 20 | |||||
Suppliers accounted for total purchases | 36.80% | |||||
Vendor represented greater than of total purchases | Supplier | 1 | |||||
Number of performance obligation | one | |||||
Stored value card redemption revenue recognized | $ 1,500,000 | $ 1,500,000 | $ 3,300,000 | $ 3,200,000 | ||
Outstanding stored value card liabilities | 7,800,000 | $ 7,800,000 | $ 8,300,000 | |||
Stored value cards redeemed period | 2 years | |||||
Impairment charges | $ 0 | 0 | 0 | |||
Merchandise [Member] | Accounting Standards Update 2014-09 | ASC 606 [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Estimated right of return related to estimated sales returns | 900,000 | 1,200,000 | ||||
Allowance for sales returns reserve | 1,900,000 | 1,900,000 | $ 2,500,000 | |||
Stored Value Card Breakage Revenue [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Recognized stored value card breakage revenue | $ 100,000 | $ 100,000 | $ 200,000 | $ 200,000 | ||
Nike [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Suppliers accounted for total purchases | 7.60% | |||||
Percentage of vendors represented greater than of total purchases | 5% | |||||
Suppliers accounted for total sales | 8.70% | |||||
COVID-19 [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Percentage of minimum number of retail store locations closed | 50% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Disaggregates Net Sales into Major Merchandise Categories to Depict Nature and Amount of Revenue and Related Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2022 | Jul. 04, 2021 | Jul. 03, 2022 | Jul. 04, 2021 | |
Accounting Policies [Line Items] | ||||
Net sales | $ 253,800 | $ 326,020 | $ 495,781 | $ 598,826 |
Hardgoods [Member] | ||||
Accounting Policies [Line Items] | ||||
Net sales | 149,392 | 196,721 | 270,357 | 337,627 |
Athletic and sport footwear [Member] | ||||
Accounting Policies [Line Items] | ||||
Net sales | 60,622 | 71,561 | 123,389 | 138,235 |
Athletic and sport apparel [Member] | ||||
Accounting Policies [Line Items] | ||||
Net sales | 43,111 | 57,146 | 99,684 | 120,672 |
Other sales [Member] | ||||
Accounting Policies [Line Items] | ||||
Net sales | $ 675 | $ 592 | $ 2,351 | $ 2,292 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | Jan. 02, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charges | $ 0 | $ 0 | $ 0 |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | $ 29,900,000 | $ 75,000,000 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Jul. 03, 2022 | Jan. 02, 2022 |
Payables and Accruals [Abstract] | ||
Payroll and related expense | $ 27,774 | $ 37,345 |
Occupancy expense | 9,398 | 10,168 |
Sales tax | 7,658 | 12,112 |
Other | 23,365 | 25,416 |
Accrued expenses | $ 68,195 | $ 85,041 |
Lease Commitments - Summary of
Lease Commitments - Summary of Components of Lease Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2022 | Jul. 04, 2021 | Jul. 03, 2022 | Jul. 04, 2021 | |
Lease expense: | ||||
Operating lease expense | $ 20,749 | $ 20,384 | $ 41,310 | $ 40,720 |
Variable lease expense | 4,881 | 4,711 | 9,504 | 9,203 |
Sublease income | (78) | |||
Operating lease expense | 25,630 | 25,095 | 50,814 | 49,845 |
Amortization of right-of-use assets | 900 | 720 | 1,802 | 1,369 |
Interest on lease liabilities | 67 | 62 | 141 | 121 |
Finance lease expense | 967 | 782 | 1,943 | 1,490 |
Total lease expense | $ 26,597 | $ 25,877 | $ 52,757 | $ 51,335 |
Lease Commitments - Schedule of
Lease Commitments - Schedule of Other Information Related to Leases (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 43,300 | $ 43,168 |
Financing cash flows from finance leases | 1,899 | 1,559 |
Operating cash flows from finance leases | 147 | 134 |
Cash paid for amounts included in the measurement of lease liabilities | 45,346 | 44,861 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 957 | 4,652 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 58,624 | $ 32,529 |
Weighted-average remaining lease term—finance leases | 3 years 8 months 12 days | 3 years 6 months |
Weighted-average remaining lease term—operating leases | 5 years 1 month 6 days | 4 years 9 months 18 days |
Weighted-average discount rate—finance leases | 3.10% | 3.40% |
Weighted-average discount rate—operating leases | 4.90% | 5.60% |
Lease Commitments - Schedule _2
Lease Commitments - Schedule of Finance and Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Jul. 03, 2022 | Jan. 02, 2022 | Jul. 04, 2021 |
Finance Lease Liabilities, Payments, Due [Abstract] | |||
2022 (remaining six months) | $ 1,970 | ||
Finance leases, 2023 | 2,737 | ||
Finance leases, 2024 | 1,953 | ||
Finance leases, 2025 | 1,470 | ||
Finance leases, 2026 | 1,007 | ||
Finance leases, thereafter | 355 | ||
Finance leases, total lease payments | $ 9,492 | ||
Weighted-average remaining lease term | 3 years 8 months 12 days | 3 years 6 months | |
Weighted-average discount rate | 3.10% | 3.40% | |
Present values | $ 9,017 | ||
Lease liabilities - current | 3,481 | $ 3,518 | |
Lease liabilities - long-term | 5,536 | 6,456 | |
Lease liabilities - total | 9,017 | ||
Difference between undiscounted and discounted cash flows | 475 | ||
Operating Lease Liabilities, Payments Due [Abstract] | |||
2022 (remaining six months) | 47,108 | ||
Operating leases, 2023 | 78,567 | ||
Operating leases, 2024 | 71,132 | ||
Operating leases, 2025 | 53,984 | ||
Operating leases, 2026 | 37,950 | ||
Operating leases, thereafter | 54,535 | ||
Operating leases, total lease payments | $ 343,276 | ||
Weighted-average remaining lease term | 5 years 1 month 6 days | 4 years 9 months 18 days | |
Weighted-average discount rate | 4.90% | 5.60% | |
Present values | $ 304,636 | ||
Lease liabilities - current | 77,421 | 76,882 | |
Lease liabilities - long-term | 227,215 | $ 204,134 | |
Lease liabilities - total | 304,636 | ||
Difference between undiscounted and discounted cash flows | $ 38,640 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Feb. 24, 2021 | Apr. 04, 2021 | Jul. 03, 2022 | Jul. 04, 2021 | Jan. 02, 2022 | |
Debt Instrument [Line Items] | |||||
Credit Agreement description | The Company, Big 5 Corp. and Big 5 Services Corp. were parties to a credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, and a syndicate of other lenders, as amended (the “Prior Credit Agreement”), which was terminated and replaced on February 24, 2021, as discussed below. | ||||
Debt issuance costs paid | $ 700,000 | $ 717,000 | |||
Long-term revolving credit borrowings outstanding | $ 0 | $ 0 | |||
Letter of credit commitments | $ 1,100,000 | 1,100,000 | |||
Loan, Guaranty and Security Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility | $ 150,000,000 | ||||
Maximum limit of credit facility | 200,000,000 | ||||
Sublimit for issuances of letters of credit | $ 50,000,000 | ||||
Maturity date of credit agreement | Feb. 24, 2026 | ||||
Percentage of eligible credit card accounts receivables | 90% | ||||
Percentage of the value of eligible inventory | 90% | ||||
Percentage of the value of eligible in-transit inventory | 90% | ||||
Interest rate, description | the applicable margin for base rate loans (as shown below) plus the highest of (a) the Federal funds rate, as in effect from time to time, plus one-half of one percent (0.50%), (b) the LIBO rate, plus one percentage point (1.00%), or (c) the rate of interest in effect for such day as announced from time to time within BofA as its “prime rate.” | ||||
Commitment fee assessed | 0.20% | ||||
Debt instrument, covenant description | Obligations under the Loan Agreement are secured by a general lien on and security interest in substantially all of the Company’s assets. The Loan Agreement contains covenants that require the Company to maintain a fixed charge coverage ratio of not less than 1.0:1.0 in certain circumstances, and limits the ability | ||||
Events of default, description | The Loan Agreement contains customary events of default, including, without limitation, failure to pay when due principal amounts with respect to the credit facility, failure to pay any interest or other amounts under the credit facility, failure to comply with certain agreements or covenants contained in the Loan Agreement, failure to satisfy certain judgments against the Company, failure to pay when due (or any other default which permits the acceleration of) certain other material indebtedness in principal amount in excess of $5.0 million, and certain insolvency and bankruptcy events. | ||||
Maximum dividend payment or stock purchase amount | $ 5,000,000 | ||||
Line of Credit Facility default debt minimum amount | $ 5,000,000 | ||||
Loan, Guaranty and Security Agreement [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Fixed charge coverage ratio | 100% | ||||
Loan, Guaranty and Security Agreement [Member] | Federal Funds Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin in addition to variable rate | 0.50% | ||||
Loan, Guaranty and Security Agreement [Member] | LIBO Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin in addition to variable rate | 1% | ||||
Prior Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Write off of deferred debt issuance cost | $ 200,000 | ||||
Wells Fargo Bank National Association [Member] | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing availability | $ 148,900,000 | $ 148,900,000 |
Long-Term Debt - Average Daily
Long-Term Debt - Average Daily Excess Availability for Preceding Fiscal Quarter (Detail) - Loan, Guaranty and Security Agreement [Member] | Feb. 24, 2021 |
Level I [Member] | |
Line Of Credit Facility [Line Items] | |
Average Daily Availability | Greater than or equal to $70,000,000 |
LIBO Rate Applicable Margin | 1.375% |
Base Rate Applicable Margin | 0.375% |
Level II [Member] | |
Line Of Credit Facility [Line Items] | |
Average Daily Availability | Less than $70,000,000 |
LIBO Rate Applicable Margin | 1.50% |
Base Rate Applicable Margin | 0.50% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jul. 03, 2022 | Jul. 04, 2021 | Jan. 02, 2022 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits | $ 0 | $ 0 | |
Unrecognized tax benefits, period | over the next 12 months | ||
Accrued interest or penalties | $ 0 | 0 | |
California [Member] | |||
Income Tax Contingency [Line Items] | |||
Disaster recovery credit related to fire | $ 200,000 | ||
Earliest Tax Year [Member] | Federal [Member] | |||
Income Tax Contingency [Line Items] | |||
Income tax returns in period | 2018 | ||
Earliest Tax Year [Member] | State and Local [Member] | |||
Income Tax Contingency [Line Items] | |||
Income tax returns in period | 2017 | ||
California Enterprise Zone Tax Credits [Member] | |||
Income Tax Contingency [Line Items] | |||
Deferred tax assets valuation allowance | $ 300,000 | $ 300,000 | |
Tax credits carry forward latest expiration year | 2024 | ||
Change in valuation allowance | $ 300,000 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2022 | Jul. 04, 2021 | Jul. 03, 2022 | Jul. 04, 2021 | |
Earnings Per Share Basic [Line Items] | ||||
Net income | $ 8,934 | $ 36,803 | $ 18,037 | $ 58,349 |
Weighted-average shares of common stock outstanding: | ||||
Basic | 21,675,000 | 21,746,000 | 21,677,000 | 21,582,000 |
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards | 364,000 | 847,000 | 520,000 | 925,000 |
Diluted | 22,039,000 | 22,593,000 | 22,197,000 | 22,507,000 |
Basic earnings per share | $ 0.41 | $ 1.69 | $ 0.83 | $ 2.70 |
Diluted earnings per share | $ 0.41 | $ 1.63 | $ 0.81 | $ 2.59 |
Share Option Awards [Member] | ||||
Weighted-average shares of common stock outstanding: | ||||
Antidilutive shares/unit awards excluded from diluted calculation | 14,000 | 0 | 12,000 | 12,000 |
Nonvested Share Awards and Nonvested Share Unit Awards [Member] | ||||
Weighted-average shares of common stock outstanding: | ||||
Antidilutive shares/unit awards excluded from diluted calculation | 403,000 | 4,000 | 0 | 2,000 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2022 | Jul. 04, 2021 | Jul. 03, 2022 | Jul. 04, 2021 | |
Share Option Awards [Member] | ||||
Earnings Per Share Basic [Line Items] | ||||
Antidilutive options | 14,000 | 0 | 12,000 | 12,000 |
Nonvested Share Awards and Nonvested Share Unit Awards [Member] | ||||
Earnings Per Share Basic [Line Items] | ||||
Antidilutive options | 403,000 | 4,000 | 0 | 2,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Apr. 04, 2021 USD ($) | Jun. 28, 2020 USD ($) Store | Jul. 04, 2021 USD ($) | |
Commitments And Contingencies [Line Items] | |||
Number of stores destroyed in civil unrest | Store | 7 | ||
Loss contingency, total loss | $ 600 | ||
Deduction on settlement | $ 300 | ||
Proceeds from cash insurance recovery total, net of insurance deductible | 1,300 | ||
Proceeds from insurance recovery | $ 1,083 | ||
Proceeds from insurance recovery - property and equipment | 200 | 249 | |
Gain on recovery of insurance proceeds - lost profit margin and business interruption | 500 | 460 | |
Gain on recovery of insurance proceeds - property and equipment | 200 | $ 249 | |
Lost Inventory and Profit Margin [Member] | |||
Commitments And Contingencies [Line Items] | |||
Proceeds from insurance recovery | 1,000 | ||
Business Interruption [Member] | |||
Commitments And Contingencies [Line Items] | |||
Proceeds from insurance recovery | $ 100 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jan. 14, 2022 shares | Nov. 30, 2021 Member | Jul. 03, 2022 USD ($) $ / shares shares | Jul. 04, 2021 USD ($) | Jul. 03, 2022 USD ($) $ / shares shares | Jul. 04, 2021 USD ($) $ / shares shares | Jun. 30, 2022 shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Compensation expense | $ | $ 600,000 | $ 500,000 | $ 1,200,000 | $ 900,000 | |||
Granted, shares | shares | 10,000 | ||||||
Expected dividend yield | 7.40% | 7.40% | |||||
Shares withheld for tax requirements | shares | 77,340 | ||||||
Tax withholding payments for share-based compensation | $ | $ 1,212,000 | $ 1,046,000 | |||||
Common Stock [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Closing stock price per share | $ / shares | $ 11.01 | $ 11.01 | |||||
Share Option Awards [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Maximum expiration period of share based payment awards granted | 10 years | ||||||
Granted, shares | shares | 10,000 | 0 | |||||
Weighted-average grant-date fair value per share | $ / shares | $ 5.46 | ||||||
Unrecognized compensation expense | $ | $ 300,000 | $ 300,000 | |||||
Weighted-average period of recognition | 1 year 7 months 6 days | ||||||
Share Option Awards [Member] | Share-based Compensation Award, Tranche One [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting rights (as percentage) | 25% | ||||||
Performance Shares [Member] | Share-based Compensation Award, Tranche One [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting rights (as percentage) | 25% | ||||||
Performance Shares [Member] | Share-based Compensation Award, Tranche One [Member] | Non-Employee Directors [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting rights (as percentage) | 100% | ||||||
Nonvested Share Awards [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Weighted-average period of recognition | 2 years 8 months 12 days | ||||||
Fair value of nonvested share awards | $ | $ 3,300,000 | $ 5,300,000 | |||||
Issuance of nonvested share awards, Shares | shares | 284,630 | 248,550 | |||||
Weighted-average grant-date fair value per share, granted | $ / shares | $ 15.03 | $ 15.61 | |||||
Unrecognized compensation expenses | $ | 6,100,000 | $ 6,100,000 | |||||
Nonvested Share Unit Awards [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Fair value of nonvested share awards | $ | 0 | $ 100,000 | |||||
Unrecognized compensation expenses | $ | $ 0 | $ 0 | |||||
Nonvested Share Unit Awards [Member] | Board Members [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares vested included in dividend reinvestments | shares | 124,012 | ||||||
Number of persons retired | Member | 1 | ||||||
2019 Equity Incentive Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of additional shares available for future grant | shares | 3,300,000 | ||||||
Shares available for future grant | shares | 1,052,734 | 1,052,734 |
Share-based Compensation - Summ
Share-based Compensation - Summary of Share Option Awards (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jul. 03, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Shares, Outstanding at January 2, 2022 | 383,035 |
Shares, Granted | 10,000 |
Shares, Exercised | (67,750) |
Shares, Forfeited | (9,600) |
Shares, Outstanding at July 3, 2022 | 315,685 |
Shares, Exercisable at July 3, 2022 | 114,059 |
Shares, Vested and Expected to Vest at July 3, 2022 | 314,718 |
Weighted-Average Exercise Price, Outstanding at January 2, 2022 | $ 3.96 |
Weighted-Average Exercise Price, Granted | 13.35 |
Weighted-Average Exercise Price, Exercised | 4.03 |
Weighted-Average Exercise Price, Forfeited | 2.81 |
Weighted-Average Exercise Price, Outstanding at July 3, 2022 | 4.27 |
Weighted-Average Exercise Price, Exercisable at July 3, 2022 | 4.11 |
Weighted-Average Exercise Price, Vested and Expected to Vest at July 3, 2022 | $ 4.27 |
Weighted-Average Remaining Contractual Life (In Years), Outstanding atJuly 3, 2022 | 7 years 3 days |
Weighted-Average Remaining Contractual Life (In Years), Exercisable at July 3, 2022 | 6 years 3 days |
Weighted-Average Remaining Contractual Life (In Years), Vested and Expected to Vest at July 3, 2022 | 7 years |
Aggregate Intrinsic Value, Outstanding at July 3, 2022 | $ 2,287,308 |
Aggregate Intrinsic Value, Exercisable at July 3, 2022 | 787,493 |
Aggregate Intrinsic Value, Vested and Expected to Vest at July 3, 2022 | $ 2,281,141 |
Share-based Compensation - Fair
Share-based Compensation - Fair Value of Share Option Award Based on Weighted-Average Assumptions (Detail) | 3 Months Ended | 6 Months Ended |
Jul. 03, 2022 | Jul. 03, 2022 | |
Share-based Payment Arrangement [Abstract] | ||
Risk-free interest rate | 2.70% | 2.70% |
Expected term | 6 years 6 months | 6 years 6 months |
Expected volatility | 80.80% | 80.80% |
Expected dividend yield | 7.40% | 7.40% |
Share-based Compensation - Su_2
Share-based Compensation - Summary of Nonvested Share Awards Activity (Detail) - Nonvested Share Awards [Member] - $ / shares | 6 Months Ended | |
Jul. 03, 2022 | Jul. 04, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested shares, beginning balance | 551,700 | |
Granted, shares | 284,630 | 248,550 |
Vested, shares | (216,700) | |
Forfeited, shares | (25,210) | |
Nonvested shares, ending balance | 594,420 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted-Average Grant-Date Fair Value, Beginning Balance | $ 8.51 | |
Weighted-Average Grant-Date Fair Value, Granted | 15.03 | $ 15.61 |
Weighted-Average Grant-Date Fair Value, Vested | 8.19 | |
Weighted-Average Grant-Date Fair Value, Forfeited | 11.19 | |
Weighted-Average Grant-Date Fair Value, Ending Balance | $ 11.64 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] | Jul. 28, 2022 $ / shares |
Dividends Payable [Line Items] | |
Dividend per share | $ 0.25 |
Dividend declared per share, payable date | Sep. 15, 2022 |
Dividend declared per share, record date | Sep. 01, 2022 |