Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 01, 2023 | Feb. 21, 2023 | Jul. 03, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 01, 2023 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
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 Annual Report | true | ||
Document Transition Report | false | ||
Entity Common Stock, Shares Outstanding | 22,182,955 | ||
Entity Public Float | $ 217,077,278 | ||
Documents Incorporated by Reference | Part III of this Form 10-K incorporates by reference certain information from the registrant’s 2023 de finitive proxy statement (the “Proxy Statement”) to be filed with the Securities and Exchange Commission no later than 120 days after the end of the re gistrant’s fiscal year. | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Firm ID | 34 | ||
Auditor Location | Los Angeles, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 01, 2023 | Jan. 02, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 25,565 | $ 97,420 |
Accounts receivable, net of allowances of $44 and $62, respectively | 12,270 | 13,654 |
Merchandise inventories, net | 303,493 | 279,981 |
Prepaid expenses | 16,632 | 16,293 |
Total current assets | 357,960 | 407,348 |
Operating lease right-of-use assets, net | 276,016 | 270,110 |
Property and equipment, net | 58,311 | 60,401 |
Deferred income taxes | 9,991 | 12,097 |
Other assets, net of accumulated amortization of $1,359 and $905, respectively | 6,515 | 3,997 |
Total assets | 708,793 | 753,953 |
Current liabilities: | ||
Accounts payable | 67,417 | 104,359 |
Accrued expenses | 70,261 | 85,041 |
Current portion of operating lease liabilities | 70,584 | 76,882 |
Current portion of finance lease liabilities | 3,217 | 3,518 |
Total current liabilities | 211,479 | 269,800 |
Operating lease liabilities, less current portion | 214,584 | 204,134 |
Finance lease liabilities, less current portion | 7,089 | 6,456 |
Long-term debt | 0 | 0 |
Other long-term liabilities | 6,857 | 6,254 |
Total liabilities | 440,009 | 486,644 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.01 par value, authorized 50,000,000 shares; issued 26,491,750 and 26,109,003 shares, respectively; outstanding 22,184,495 and 22,097,467 shares, respectively | 264 | 260 |
Additional paid-in capital | 126,512 | 124,909 |
Retained earnings | 196,265 | 192,261 |
Less: Treasury stock, at cost; 4,307,255 and 4,011,536 shares, respectively | (54,257) | (50,121) |
Total stockholders' equity | 268,784 | 267,309 |
Total liabilities and stockholders' equity | $ 708,793 | $ 753,953 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 01, 2023 | Jan. 02, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 44 | $ 62 |
Accumulated amortization on other assets | $ 1,359 | $ 905 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 26,491,750 | 26,109,003 |
Common stock, shares outstanding | 22,184,495 | 22,097,467 |
Treasury stock, shares | 4,307,255 | 4,011,536 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 995,538 | $ 1,161,820 | $ 1,041,212 |
Cost of sales | 654,323 | 725,991 | 692,041 |
Gross profit | 341,215 | 435,829 | 349,171 |
Selling and administrative expense | 307,700 | 299,812 | 275,406 |
Other income | (2,500) | ||
Operating income | 33,515 | 136,017 | 76,265 |
Interest expense | 572 | 893 | 1,880 |
Income before income taxes | 32,943 | 135,124 | 74,385 |
Income tax expense | 6,809 | 32,738 | 18,445 |
Net income | $ 26,134 | $ 102,386 | $ 55,940 |
Earnings per share: | |||
Basic | $ 1.21 | $ 4.73 | $ 2.63 |
Diluted | $ 1.18 | $ 4.55 | $ 2.58 |
Weighted-average shares of common stock outstanding: | |||
Basic | 21,634 | 21,670 | 21,260 |
Diluted | 22,089 | 22,512 | 21,663 |
Consolidated Statements of Stoc
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 Dec. 29, 2019 | $ 180,372 | $ 252 | $ 120,054 | $ 102,593 | $ (42,527) | |
Beginning Balance, Shares at Dec. 29, 2019 | 21,664,076 | |||||
Net income | 55,940 | 55,940 | ||||
Dividends on common stock | (5,460) | (5,460) | ||||
Issuance of nonvested share awards | 3 | (3) | ||||
Issuance of nonvested share awards, Shares | 321,600 | |||||
Exercise of share option awards | 169 | 169 | ||||
Exercise of share option awards, Shares | 31,600 | |||||
Share-based compensation | 1,714 | 1,714 | ||||
Forfeiture of nonvested share awards, Shares | (22,375) | |||||
Retirement of common stock for payment of withholding tax | (97) | (97) | ||||
Retirement of common stock for payment of withholding tax, Shares | (64,573) | |||||
Ending Balance at Jan. 03, 2021 | 232,638 | 255 | 121,837 | 153,073 | (42,527) | |
Ending Balance, shares at Jan. 03, 2021 | 21,930,328 | |||||
Net income | 102,386 | 102,386 | ||||
Dividends on common stock | (63,198) | (63,198) | ||||
Issuance of nonvested share awards | 2 | (2) | ||||
Issuance of nonvested share awards, Shares | 248,550 | |||||
Exercise of share option awards | 2,165 | 3 | 2,162 | |||
Exercise of share option awards, Shares | 369,765 | |||||
Share-based compensation | 1,958 | 1,958 | ||||
Forfeiture of nonvested share awards, Shares | (19,625) | |||||
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) | |||||
Purchases of treasury stock | (7,594) | (7,594) | ||||
Purchases of treasury stock, Shares | (361,323) | |||||
Ending Balance at Jan. 02, 2022 | 267,309 | 260 | 124,909 | 192,261 | (50,121) | |
Ending Balance, shares at Jan. 02, 2022 | 22,097,467 | |||||
Net income | 26,134 | 26,134 | ||||
Dividends on common stock | (22,130) | (22,130) | ||||
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 | $ 349 | 1 | 348 | |||
Exercise of share option awards, Shares | 83,400 | 83,400 | ||||
Share-based compensation | $ 2,470 | 2,470 | ||||
Forfeiture of nonvested share awards, Shares | (31,955) | |||||
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 | $ (4,136) | (4,136) | ||||
Purchases of treasury stock, Shares | (295,719) | |||||
Ending Balance at Jan. 01, 2023 | $ 268,784 | $ 264 | $ 126,512 | $ 196,265 | $ (54,257) | |
Ending Balance, shares at Jan. 01, 2023 | 22,184,495 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Retained Earnings [Member] | |||
Dividends per share | $ 1 | $ 2.83 | $ 0.25 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 26,134 | $ 102,386 | $ 55,940 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 18,020 | 17,698 | 18,450 |
Share-based compensation | 2,470 | 1,958 | 1,714 |
Amortization of other assets | 453 | 577 | 364 |
Loss on disposal of equipment | 288 | ||
Noncash lease expense | 68,929 | 65,716 | 64,316 |
Proceeds from insurance recovery - lost profit margin and expenses | 1,083 | 1,077 | |
Gain on recovery of insurance proceeds - lost profit margin and expenses | (460) | (1,077) | |
Gain on recovery of insurance proceeds - property and equipment | (249) | (1,750) | |
Gain on eminent domain condemnation | (2,500) | ||
Proceeds from eminent domain condemnation - lost profit margin | 2,263 | ||
Deferred income taxes | 2,106 | 1,734 | (212) |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 1,641 | 5,902 | (6,193) |
Merchandise inventories, net | (23,512) | (28,801) | 58,135 |
Prepaid expenses and other assets | (3,292) | (5,523) | (1,861) |
Accounts payable | (37,251) | 23,341 | 9,243 |
Operating lease liabilities | (70,940) | (68,028) | (67,198) |
Accrued expenses and other long-term liabilities | (13,486) | (1,806) | 18,032 |
Net cash (used in) provided by operating activities | (28,440) | 115,528 | 148,743 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (13,193) | (10,864) | (7,347) |
Proceeds from insurance recovery - property and equipment | 249 | 1,750 | |
Proceeds from eminent domain condemnation - property and equipment | 237 | ||
Proceeds from disposal of property and equipment | 13 | ||
Net cash used in investing activities | (13,180) | (10,615) | (5,360) |
Cash flows from financing activities: | |||
Borrowings under revolving credit facility | 137,296 | ||
Payments under revolving credit facility | (203,855) | ||
Changes in book overdraft | 619 | (246) | (12,031) |
Debt issuance costs paid | (18) | (746) | (106) |
Principal payments under finance lease obligations | (3,504) | (2,887) | (2,858) |
Proceeds from exercise of share option awards | 349 | 2,165 | 169 |
Cash purchases of treasury stock | (4,136) | (7,594) | |
Tax withholding payments for share-based compensation | (1,212) | (1,046) | (97) |
Dividends paid | (22,333) | (61,793) | (5,470) |
Net cash used in financing activities | (30,235) | (72,147) | (86,952) |
Net (decrease) increase in cash and cash equivalents | (71,855) | 32,766 | 56,431 |
Cash and cash equivalents at beginning of year | 97,420 | 64,654 | 8,223 |
Cash and cash equivalents at end of year | 25,565 | 97,420 | 64,654 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Property and equipment acquired under finance leases | 3,828 | 8,276 | |
Property and equipment additions unpaid | 1,592 | 2,382 | 668 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 586 | 624 | 1,856 |
Income taxes paid | $ 5,471 | $ 36,391 | $ 19,625 |
Description of Business
Description of Business | 12 Months Ended |
Jan. 01, 2023 | |
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 432 stores and an e-commerce platform as of January 1, 2023. The Company provides a full-line product offering in a traditional sporting goods store format that averages approximately 12,000 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 under the “Big 5 Sporting Goods” name 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 Company’s consolidated financial statements as of January 1, 2023 and January 2, 2022 and for the years ended January 1, 2023 (“fiscal 2022”), January 2, 2022 (“fiscal 2021”) and January 3, 2021 (“fiscal 2020 ”) represent the financial position, results of operations and cash flows of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 01, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Consolidation The accompanying consolidated 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 2022 and fiscal 2021 included 52 weeks, and fiscal 2020 included 53 weeks. Recently Issued Accounting Updates In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 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, which was established as the original sunset date. The amendments in this standard are elective and are effective upon issuance for all entities, and the impact from this standard was immaterial. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848)—Deferral of the Sunset Date of Topic 848 , which deferred the sunset date of ASC 848 until December 31, 2024. The ASU became effective upon issuance for all entities, and the impact from this standard was immaterial. Other recently issued accounting updates are not expected to have a material impact on the Company’s consolidated 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, but there was less of an impact from such activity in the second half of fiscal 2022. 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 third quarter 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 had significantly increased cargo backlogs. Shipping capacity constraints and labor shortages at the ports contributed to higher freight costs and adversely impacted our ability to obtain sufficient quantities of certain products in our stores to meet customer demand, although to a lesser degree in the second half of fiscal 2022. While our ability to obtain product has improved, 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 maintains its cash accounts in financial institutions, and accounts at these institutions are insured by the Federal Deposit Insurance Corporation up to $ 250,000 . Cash equivalents represent investments of excess cash on hand of $ 75.0 million into U.S. Treasury bills as of January 2, 2022 . There were no cash equivalents as of January 1, 2023. Because of the Company’s geographic concentration in the western United States, the Company is subject to regional risks, such as the economy, including downturns in the housing market, state financial conditions, unemployment and gas prices. Other regional risks include weather conditions, fires, droughts, earthquakes, power outages, floods and other natural disasters specific to the states in which the Company operates. The Company relies on a single distribution center located in Riverside, California, which services all of its stores and e-commerce platform. Any natural disaster or other serious disruption to the distribution center due to fire, earthquake or any other cause could damage a significant portion of inventory and could materially impair the Company’s ability to adequately stock its stores and fulfill its e-commerce business. The Company purchases merchandise from nearly 700 suppliers, and the Company’s 20 largest suppliers accounted for 35.9 % of total purchases in fiscal 2022 . No vendor represented greater than 5 % of total purchases in fiscal 2022. A significant portion of the Company’s inventory is manufactured abroad in Asia. Foreign imports subject the Company to the risks of changes in, or the imposition of new, import tariffs, duties or quotas, new restrictions on imports, loss of “most favored nation” status with the United States for a particular foreign country, antidumping or countervailing duty orders, retaliatory actions in response to illegal trade practices, work stoppages, delays in shipment, freight expense increases, product cost increases due to foreign currency fluctuations or revaluations, public health issues that could lead to temporary closures of facilities or shipping ports, such as the recent outbreak of COVID-19, and other economic uncertainties. If a disruption of trade were to occur from the countries in which the suppliers of the Company’s vendors are located, the Company may be unable to obtain sufficient quantities of products to satisfy its requirements, or the cost of obtaining products may increase. 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, and which led to a significant reduction in supply chain relative to this vendor. This transition did not impact our ability to continue to purchase certain Nike branded products from authorized licensees even though Nike no longer represents a significant percentage of our merchandise purchases. 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. From time to time, shipping ports 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. The Company could be exposed to credit risk in the event of nonperformance by its lender under its revolving credit facility. Instability in the financial and capital markets could bring additional potential risks to the Company, including higher costs of credit, potential lender defaults, and potential commercial bank failures. The Company has received no indication that any such events will negatively impact its lender under its credit facility; however, the possibility does exist. 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 consolidated financial statements and reported amounts of revenue and expense during the reporting period to prepare these consolidated 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 January 1, 2023 , including those resulting from the impacts of the COVID-19 pandemic, may result in actual outcomes that differ from those contemplated by management’s assumptions and estimates. Segment Reporting 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, and whose Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer. The CODM reviews financial information presented on a consolidated basis, for purposes of allocating resources and evaluating financial performance. The Company’s stores typically have similar square footage, with the stores and e-commerce platform offering a similar general product mix. The Company’s core customer demographic remains similar across all sales channels, as does the Company’s process for the procurement and marketing of its product mix. Furthermore, the Company distributes its product mix for both the stores and e-commerce platform from a single distribution center. Given the consolidated level of review by the CODM, the Company operates as one reportable segment as defined by ASC 280, Segment Reporting . 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. 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, in 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 reasonably assured since the Company only extends immaterial credit purchases to certain municipalities and local school districts. As noted in the segment information elsewhere in this Note 2 to the Notes to Consolidated Financial Statements, the Company’s business consists of one reportable segment. In accordance with 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: Fiscal Year Ended January 1, January 2, January 3, (In thousands) Hardgoods $ 536,294 $ 637,181 $ 623,728 Athletic and sport footwear 246,302 279,645 228,311 Athletic and sport apparel 209,672 241,526 184,538 Other sales 3,270 3,468 4,635 Net sales $ 995,538 $ 1,161,820 $ 1,041,212 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 transaction price for each contract is the stated price on the product, reduced by any stated discounts at that point in time. The Company does not engage in sales of products that attach a future material right which could result in a separate performance obligation for the purchase of goods in the future at a material discount. The implicit point-of-sale contract with the customer, as reflected in the transaction receipt, states the final terms of the sale, including the description, quantity, and price of each product purchased. Payment for the Company’s contracts is due in full upon delivery. The customer agrees to a stated price implicit in the contract. The transaction price relative to sales subject to a right of return reflects the amount of estimated consideration to which the Company expects to be entitled. This amount of variable consideration included in the transaction price, and measurement of net sales, is included in net sales only to the extent that it is probable that there will be no significant reversal in a future period. Actual amounts of consideration ultimately received may differ from the Company’s estimates. There were no material adjustments to the Company’s previous estimates. The allowance for sales returns is estimated based upon historical experience and a provision for estimated returns is recorded as a reduction in sales in the relevant period. The estimated right-of-return merchandise cost related to the sales returns is recorded as prepaid expense in the Company’s consolidated balance sheet as of January 1, 2023. If actual results in the future vary from the Company’s estimates, the Company adjusts these estimates, which would affect net sales and earnings in the period such variances become known. The Company has elected to apply the practical expedient, relative to e-commerce sales, which allows an entity to account for shipping and handling 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 is not material. Contract liabilities are recognized primarily for stored-value card sales and issuances in exchange for returns. Cash received from the sale or issuance of stored-value cards is recorded as a contract liability in accrued expenses in the Company’s consolidated balance sheets, and the Company recognizes revenue upon the customer’s redemption of the stored-value card. Stored-value card breakage is recognized as revenue in proportion to the pattern of customer redemptions by applying a historical breakage rate of five percent. The Company does not sell or provide stored-value cards that carry expiration dates. The Company recognized $ 6.1 million, $ 5.9 million and $ 5.4 million in stored-value card redemption revenue for fiscal 2022, 2021 and 2020, respectively. The Company also recognized $ 0.3 million in stored-value card breakage revenue for each of fiscal 2022, 2021 and 2020. The Company had outstanding stored-value card liabilities of $ 8.8 million and $ 8.3 million as of January 1, 2023 and January 2, 2022 , respectively, which are included in accrued expenses in the Company’s consolidated balance sheets. Based upon historical experience, stored-value cards are predominantly redeemed in the first two years following their issuance date. The Company recorded, as prepaid expense in the Company’s consolidated balance sheets, estimated right-of-return merchandise cost of $ 1.2 million related to estimated sales returns as of January 1, 2023 and January 2, 2022 , and recorded, as accrued expense in the Company’s consolidated balance sheets, an allowance for sales returns reserve of $ 2.3 million and $ 2.5 million as of January 1, 2023 and January 2, 2022 , respectively. Cost of Sales Cost of sales includes the cost of merchandise, net of discounts or allowances earned, freight (including e-commerce shipping and handling costs), inventory reserves, buying, distribution center expense, including depreciation and amortization, and store occupancy expense. Store occupancy expense includes rent, amortization of leasehold improvements, common area maintenance, property taxes and insurance. Selling and Administrative Expense Selling and administrative expense includes store-related expense, other than store occupancy expense, as well as advertising, depreciation and amortization, expense associated with operating the Company’s corporate headquarters and impairment charges, if any. Vendor Allowances The Company receives allowances for co-operative advertising and volume purchase rebates earned through programs with certain vendors. The Company records a receivable for these allowances which are earned but not yet received when it is determined the amounts are probable and reasonably estimable. Amounts relating to the purchase of merchandise are treated as a reduction of inventory cost and reduce cost of goods sold as the merchandise is sold. After reducing advertising significantly in fiscal 2021 and 2020 in response to the COVID-19 pandemic, beginning in the second half of fiscal 2020 and for all periods presented, amounts that represent a reimbursement of costs incurred, such as advertising, are recorded as a reduction of inventory cost and reduce cost of goods sold as the merchandise is sold. Advertising Expense Advertising is expensed when the advertising first occurs. Advertising expense, net of co-operative advertising allowances, amounted to $ 12.1 million, $ 11.0 million and $ 10.6 million for fiscal 2022, 2021 and 2020 , respectively. The Company reduced advertising significantly in fiscal 2022, 2021 and 2020 in response to the COVID-19 pandemic. Advertising expense is included in selling and administrative expense in the Company’s consolidated statements of operations. The Company receives co-operative advertising allowances from certain product vendors in order to subsidize qualifying advertising and similar promotional expenditures made relating to vendors’ products. Co-operative advertising allowances recognized as a reduction to selling and administrative expense amounted to zero for fiscal 2022 and 2021 and $ 1.1 million for fiscal 2020 . Beginning in the second half of fiscal 2020, as a result of the significant reductions of print advertising in fiscal 2022, 2021 and 2020, the Company treated these advertising allowances as a reduction of inventory cost and cost of goods sold which had an immaterial effect on the Company’s consolidated financial statements. 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 13 to the Notes to Consolidated Financial Statements for a further discussion on share-based compensation. Pre-opening Costs Pre-opening costs for new stores, which are not material, consist primarily of payroll and recruiting expense, training, marketing, rent, travel and supplies, and are expensed as incurred and included in selling and administrative expense in the Company’s consolidated statements of operations. 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 maturities of 90 days or less. See Note 4 to the Notes to Consolidated Financial Statements for a further discussion on the fair value of U.S. Treasury bills. Book overdrafts for checks outstanding are classified as current liabilities in the Company’s consolidated balance sheets. Accounts Receivable Accounts receivable consist primarily of third party purchasing card receivables, amounts due from inventory vendors for returned products, volume purchase rebates or co-operative advertising, amounts due from lessors for tenant improvement allowances and insurance recovery receivables. Accounts receivable have not historically resulted in any material credit losses. An allowance for doubtful accounts is provided when accounts are determined to be uncollectible. Valuation of Merchandise Inventories, Net The Company’s merchandise inventories 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. Prepaid Expenses and Other Assets Prepaid expenses include the prepayment of various operating expenses such as insurance, income and property taxes, software maintenance and supplies, which are expensed when the operating cost is realized, as well as estimated right-of-return merchandise cost related to estimated sales returns. Other assets include the long-term portion of certain prepaid expenses, capitalized deferred financing fees related to the Company’s credit facility and capitalized implementation costs related to information technology (“IT”) system hosting arrangements that are service contracts. While deferred financing fees and implementation costs are capitalized and amortized over the respective terms of their arrangements, costs related to the service element of a hosting arrangement that is a service contract are expensed as incurred. Property and Equipment, Net Property and equipment are stated at cost and are being depreciated or amortized utilizing the straight-line method over the following estimated useful lives: Land Indefinite Buildings 20 years Leasehold improvements Shorter of estimated useful life or term of lease Furniture and equipment 3 – 10 years Internal-use software 3 – 7 years Maintenance and repairs are expensed as incurred. The Company incurs costs to purchase and develop software for internal use. Costs related to the application development stage are capitalized and amortized over the estimated useful life of the software. Costs related to the design or maintenance of internal-use software are expensed as incurred. See Note 3 to the Notes to Consolidated Financial Statements for a further discussion on property and equipment. 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 or 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 fiscal 2022, 2021 and 2020 . 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, IT 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 Company’s consolidated balance sheets. Finance leases are included in property and equipment and finance lease liabilities, current and noncurrent, on the Company’s 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 Company’s consolidated statement 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 Company’s 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 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 bor |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 01, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | (3) Property and Equipment, Net Property and equipment, net, consist of the following: January 1, January 2, (In thousands) Leasehold improvements $ 184,326 $ 176,066 Furniture and equipment 146,392 142,638 Internal-use software 37,192 37,188 Land 2,750 2,750 Building 1,775 1,775 372,435 360,417 Accumulated depreciation and amortization (1) ( 315,596 ) ( 301,852 ) 56,839 58,565 Assets not placed into service 1,472 1,836 Property and equipment, net $ 58,311 $ 60,401 (1) Includes accumulated amortization for internal-use software development costs of $ 34.4 million and $ 32.7 million as of January 1, 2023 and January 2, 2022 , respectively. Depreciation expense associated with property and equipment, including assets leased under finance leases, was $ 8.0 million, $ 7.6 million and $ 6.7 million for fiscal 2022, 2021 and 2020 , respectively. Amortization expense for leasehold improvements was $ 8.0 million, $ 8.0 million and $ 8.9 million for fiscal 2022, 2021 and 2020, respectively. Amortization expense for internal-use software was $ 2.0 million, $ 2.1 million and $ 2.9 million for fiscal 2022, 2021 and 2020, respectively. The gross cost of equipment under finance leases, included above, was $ 19.1 million and $ 16.5 million as of January 1, 2023 and January 2, 2022 , respectively. The accumulated depreciation related to these finance leases was $ 8.2 million and $ 6.1 million as of January 1, 2023 and January 2, 2022 , respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (4) 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 three months or less. As of January 1, 2023 , the Company had no cash equivalents. As of January 2, 2022 , the Company recorded $ 75.0 million 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 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 January 1, 2023 and January 2, 2022 , there were no long-lived assets subject to impairment. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jan. 01, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | (5) Accrued Expenses The major components of accrued expenses are as follows: January 1, January 2, (In thousands) Payroll and related expense $ 26,525 $ 37,345 Occupancy expense 10,126 10,168 Sales tax 9,964 12,112 Other 23,646 25,416 Accrued expenses $ 70,261 $ 85,041 Payroll and related expense as of 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. The decrease in accrued payroll and related expense as of January 1, 2023 compared to the prior year primarily reflects lower performance-based incentive accruals and payment during fiscal 2022 of the deferred portion of Social Security tax provided by the CARES Act. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Jan. 01, 2023 | |
Leases [Abstract] | |
Lease Commitments | (6) Lease Commitments The Company has operating and finance leases for the Company’s retail store facilities, distribution center, corporate offices, IT hardware, and distribution center delivery tractors and equipment, and accounts for these leases in accordance with ASC 842. The Company’s operating leases have remaining reasonably certain lease terms of up to 12 years, which typically include options to extend the leases for up to 5 years . The Company’s finance leases have remaining reasonably certain lease terms of up to 6 years. 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: Fiscal Year Ended January 1, January 2, January 3, (In thousands) Lease expense: Operating lease expense $ 83,412 $ 81,734 $ 83,030 Variable lease expense 18,803 18,384 15,238 Sublease income — ( 91 ) ( 1,192 ) Operating lease expense 102,215 100,027 97,076 Amortization of right-of-use assets 3,652 2,940 2,721 Interest on lease liabilities 282 260 297 Finance lease expense 3,934 3,200 3,018 Total lease expense $ 106,149 $ 103,227 $ 100,094 (1) Variable lease expense for fiscal 2020 was reduced by $ 3.1 million for lease abatements related to the effects of the COVID-19 pandemic that resulted in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract. See Note 2 to the Notes to Consolidated Financial Statements for a further discussion on lease concessions. In accordance with ASC 842, other information related to leases was as follows: Fiscal Year Ended January 1, January 2, January 3, (In thousands) Operating cash flows from operating leases $ 86,170 $ 85,238 $ 83,028 Financing cash flows from finance leases 3,504 2,887 2,858 Operating cash flows from finance leases 289 271 313 Cash paid for amounts included in the measurement of lease liabilities $ 89,963 $ 88,396 $ 86,199 Right-of-use assets obtained in exchange for new finance lease liabilities $ 3,859 $ 8,723 $ — Right-of-use assets obtained in exchange for new operating lease liabilities $ 74,829 $ 56,953 $ 80,452 Weighted-average remaining lease term—finance leases 3.8 years 3.8 years 2.4 years Weighted-average remaining lease term—operating leases 5.0 years 4.8 years 5.0 years Weighted-average discount rate—finance leases 3.8 % 3.1 % 4.8 % Weighted-average discount rate—operating leases 4.9 % 5.4 % 6.1 % In accordance with ASC 842, maturities of finance and operating lease liabilities as of January 1, 2023 were as follows: Fiscal Year Ending: Finance Operating (In thousands) 2023 $ 4,419 $ 82,670 2024 2,446 74,426 2025 1,933 57,419 2026 1,414 41,376 2027 620 24,728 Thereafter 267 41,165 Undiscounted cash flows $ 11,099 $ 321,784 Reconciliation of lease liabilities: Weighted-average remaining lease term 3.8 years 5.0 years Weighted-average discount rate 3.8 % 4.9 % Present values $ 10,306 $ 285,168 Lease liabilities - current 3,217 70,584 Lease liabilities - long-term 7,089 214,584 Lease liabilities - total $ 10,306 $ 285,168 Difference between undiscounted and discounted cash flows $ 793 $ 36,616 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 01, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (7) 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 and October 19, 2022 (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 Term SOFR 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 Term SOFR rate loans bear interest at a rate equal to the then applicable secured overnight financing rate as administered by the Federal Reserve Bank of New York (“SOFR”) rate plus a 0.10 % “SOFR adjustment” spread, 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 one-month SOFR 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.” 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 SOFR 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 January 1, 2023 and January 2, 2022 , the Company had no long-term revolving credit borrowings outstanding. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (8) Income Taxes Income tax expense (benefit) consists of the following: Current Deferred Total (In thousands) Fiscal 2022: Federal $ 2,958 $ 1,905 $ 4,863 State 1,745 201 1,946 $ 4,703 $ 2,106 $ 6,809 Fiscal 2021: Federal $ 23,422 $ 1,121 $ 24,543 State 7,582 613 8,195 $ 31,004 $ 1,734 $ 32,738 Fiscal 2020: Federal $ 13,786 $ 86 $ 13,872 State 4,871 ( 298 ) 4,573 $ 18,657 $ ( 212 ) $ 18,445 The provision for income taxes differs from the amounts computed by applying the federal statutory tax rate of 21 % to earnings before income taxes, as follows: Fiscal Year Ended January 1, January 2, January 3, (In thousands) Tax expense at statutory rate $ 6,918 $ 28,376 $ 15,621 State tax expense, net of federal tax effect 1,734 7,167 3,975 Additional deduction related to share-based compensation ( 1,321 ) ( 2,623 ) — Nondeductible expenses 259 729 86 Tax credits ( 826 ) ( 603 ) ( 246 ) Change in valuation allowance — ( 318 ) ( 418 ) CARES Act net operating loss carryback — — ( 822 ) Write-offs related to nonvested share awards — — 260 Other 45 10 ( 11 ) $ 6,809 $ 32,738 $ 18,445 Deferred tax assets and liabilities as of January 1, 2023 and January 2, 2022 are tax-effected based on the federal and state corporate income tax rates. Deferred tax assets and liabilities consist of the following tax-effected temporary differences: January 1, January 2, (In thousands) Deferred tax assets: Employee benefit-related liabilities $ 2,781 $ 2,889 Insurance liabilities 2,654 2,421 Deferred rent 1,632 2,828 Gift card liability 1,594 1,420 Merchandise inventory 1,103 1,215 Property, plant and equipment 816 814 Share-based compensation 810 805 State taxes 379 1,545 California Enterprise Zone Tax Credits 325 381 Other deferred tax assets 606 686 Gross deferred tax assets 12,700 15,004 Less: Valuation allowance ( 280 ) ( 280 ) Deferred tax assets, net of valuation allowance 12,420 14,724 Deferred tax liabilities: Prepaid expense ( 992 ) ( 1,147 ) Federal liability on state deferred tax assets ( 954 ) ( 996 ) Accrual for software as a service ( 483 ) ( 484 ) Deferred tax liabilities ( 2,429 ) ( 2,627 ) Net deferred tax assets $ 9,991 $ 12,097 As of fiscal 2022 and 2021, the Company maintained a valuation allowance of $ 0.3 million related to unused California Enterprise Zone Tax Credits, which the Company will not be able to carry forward beyond the 2023 tax year as a result of California’s termination of this program. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections of future taxable income over the periods during which the deferred tax assets are deductible, except as noted above, management believes it is more likely than not that the Company will realize the benefits of these deductible differences. The amount of the deferred tax asset considered realizable, however, could be reduced if estimates of future taxable income are reduced. Certain prior period amounts were reclassified to conform with current period presentation requirements. The Company files a consolidated federal income tax return and files tax returns in various state and local jurisdictions. The statutes of limitations for its consolidated federal income tax returns are open for fiscal years 2019 and after, and state and local income tax returns are open for fiscal years 2018 and after. As of January 1, 2023 and January 2, 2022 , the Company had no unrecognized tax benefits 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 January 1, 2023 and January 2, 2022 , the Company had no accrued interest or penalties. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 01, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (9) 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. The following table sets forth the computation of basic and diluted earnings per common share: Fiscal Year Ended January 1, January 2, January 3, (In thousands, except per share data) Net income $ 26,134 $ 102,386 $ 55,940 Weighted-average shares of common stock outstanding: Basic 21,634 21,670 21,260 Dilutive effect of common stock equivalents arising 455 842 403 Diluted 22,089 22,512 21,663 Basic earnings per share $ 1.21 $ 4.73 $ 2.63 Diluted earnings per share $ 1.18 $ 4.55 $ 2.58 Antidilutive share option awards excluded 16 2 494 Antidilutive nonvested share and nonvested share unit 185 — 46 The computation of diluted earnings per share for the periods presented excludes certain share option awards since the exercise prices of these share option awards exceeded the average market price of the Company’s common shares, and the effect of their inclusion would have been antidilutive (i.e., including such share option awards would result in higher earnings per share). No nonvested share awards or nonvested share unit awards were antidilutive for fiscal 2021. The computation of diluted earnings per share for fiscal 2022 and 2020 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. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 01, 2023 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | (10) Employee Benefit Plans The Company has a 401(k) plan covering eligible employees. Employee contributions are supplemented by Company contributions subject to 401(k) plan terms. The Company recognized employer matching and profit-sharing contributions of $ 2.4 million, $ 5.3 million and $ 3.7 million for fiscal 2022, 2021 and 2020 , respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 01, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (11) Related Party Transactions Prior to his death in fiscal 2008, the Company had an employment agreement with Robert W. Miller (“Mr. Miller”), co-founder of the Company and the father of Steven G. Miller, Chairman of the Board, President, Chief Executive Officer and a director of the Company. The employment agreement provided for Mr. Miller to receive an annual base salary of $ 350,000 . The employment agreement further provided that, following his death, the Company would pay his surviving wife $350,000 per year and provide her specified benefits for the remainder of her life. During fiscal 2020, the Company made a payment of $ 350,000 to Mr. Miller’s wife. The Company recognized expense of $ 0.3 million in fiscal 2020, to provide for a liability for the future obligations under this agreement. Based upon actuarial valuation estimates related to this agreement, the Company had a recorded liability of $ 1.0 million as of January 3, 2021. The short-term portion of this liability was recorded in accrued expenses in the Company’s consolidated balance sheets and the long-term portion was recorded in other long-term liabilities in the Company’s consolidated balance sheet. In January 2021, Mrs. Miller passed away and, accordingly, the Company eliminated the liability of $ 1.0 million and reduced selling and administrative expense by the same amount in the first quarter of fiscal 2021. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (12) Commitments and Contingencies 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 or financial condition. Eminent Domain Matter On approximately March 13, 2018, the Orange County Transportation Authority (“OCTA”) filed an eminent domain action against the Company and its Westminster, California, store location to acquire the Company’s interest in the property for public purposes related to a transportation project. The Company surrendered possession of this location on approximately January 31, 2019. On March 31, 2020, the Company and representatives of the OCTA agreed to a preliminary settlement of the proceedings, which was formally approved by the OCTA’s Board on approximately April 27, 2020. Pursuant to the terms of the settlement, on May 21, 2020, the Company received a cash condemnation settlement from the OCTA in the amount of $ 2.5 million for lost profit and property. The Company recorded a pre-tax gain for the $ 2.5 million in the second quarter of fiscal 2020 related to the settlement, of which $ 0.2 million represented lost property and equipment, which was included as other income in the Company’s consolidated statement of operations. Attorneys’ fees related to this settlement totaled $ 0.1 million in fiscal 2020 and were included in selling and administrative expense in the Company’s consolidated statement of operations. 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 Company’s 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 Company’s consolidated statement of operations as a reduction to selling and administrative expense for fiscal 2021. In July 2019, one of the Company’s stores was damaged as a result of a fire and, in the fourth quarter of fiscal 2019, the Company disposed of assets of approximately $ 0.8 million related to lost inventory and property and equipment. In the fourth quarter of fiscal 2020, the Company reached an agreement with its insurance carrier and, after application of a previous advance of $ 0.5 million and deductible of $ 0.2 million, the Company received a cash insurance recovery and recorded a gain of $ 2.8 million in total, of which $ 1.7 million related to the reimbursement of property and equipment, $ 0.8 million related to the reimbursement of lost profit margin, and $ 0.3 million related to a reimbursement for business interruption. The reimbursement of lost property and equipment is included in the Company’s consolidated statements of operations as a reduction to selling and administrative expense, and the reimbursement of lost profit margin and business interruption is included in the Company’s consolidated statements of operations as a reduction to cost of goods sold for fiscal 2020. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Jan. 01, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation Plans | (13) Share-Based Compensation Plans 2019 Equity Incentive Plan In April 2019, the Company adopted the 2019 Equity Incentive Plan, as amended and restated in June 2022 (“2019 Plan”), which replaced the Company’s Amended and Restated 2007 Equity and Performance Incentive Plan (the “Prior Plan”). The amendment and restatement of the 2019 Plan in June 2022 primarily authorized an additional 3,300,000 shares available for future grant. Awards under the 2019 Plan may consist of share option awards (both incentive share option awards and non-qualified share option awards), stock appreciation rights, nonvested share awards, other stock unit awards or dividend equivalents. In the past, share option awards issued by the Company have typically been non-qualified share option awards, while nonvested share awards and nonvested share unit awards issued by the Company have typically been based on the attainment of service-only conditions. Upon the adoption of the 2019 Plan, the Company stopped issuing awards under the Prior Plan, although the Company will continue to honor any outstanding awards under the Prior Plan. The 2019 Plan (i) permits the Company to issue a maximum of 7,148,803 shares of the Company’s common stock plus the number of any additional shares that may thereafter become available as a result of the forfeiture, expiration or other cancellation of awards under any prior plans; and (ii) expires on April 11, 2029 . Any share option awards or stock appreciation rights shall be counted against this limit as one share for every one share granted. Any shares that are subject to awards other than share option awards or stock appreciation rights (including shares delivered on the settlement of dividend equivalents) shall be counted against this limit as 2.5 shares for every one share granted. The aggregate number of shares available under the 2019 Plan and the number of outstanding share option awards will be increased or decreased to reflect any changes in the outstanding common stock of the Company by reason of any recapitalization, spin-off, reorganization, reclassification, stock dividend, stock split, reverse stock split, or similar transaction. 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 2019 Plan, and accounts for its share-based compensation in accordance with ASC 718. As of January 1, 2023 , 4,350,658 shares remained available for future grant, and 300,035 share option awards, 587,675 nonvested share awards and zero nonvested share unit awards remained outstanding. The Company accounts for its share-based compensation in accordance with ASC 718 and recognizes compensation expense on a straight-line basis over the requisite service period, net of estimated forfeitures, using the fair-value method for share option awards, nonvested share awards and nonvested share unit awards granted with service-only conditions. The estimated forfeiture rate considers historical employee turnover rates stratified into employee pools in comparison with an overall employee turnover rate, as well as expectations about the future. The Company periodically revises the estimated forfeiture rate in subsequent periods if actual forfeitures differ from those estimates. Compensation expense recorded under this method for fiscal 2022, 2021 and 2020 was $ 2.5 million, $ 2.0 million and $ 1.7 million, respectively, which reduced operating income and income before income taxes by the same amount. Compensation expense recognized in cost of sales was $ 0.1 million in fiscal 2022, 2021 and 2020 and compensation expense recognized in selling and administrative expense was $ 2.4 million, $ 1.9 million and $ 1.6 million in fiscal 2022, 2021 and 2020, respectively. The recognized tax benefit related to compensation expense for fiscal 2022, 2021 and 2020 was $ 0.5 million, $ 0.5 million and $ 0.4 million, respectively. Net income for fiscal 2022, 2021 and 2020 reflects the net-of-tax charge of $ 2.0 million, $ 1.5 million and $ 1.3 million, respectively, or $ 0.09 , $ 0.07 and $ 0.06 per basic and diluted share, respectively. Share Option Awards Share option awards granted by the Company generally vest and become exercisable in four equal 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 with a weighted-average grant-date fair value of $ 5.46 per share option award in fiscal 2022 , granted 10,000 share option awards with a weighted-average grant-date fair value of $ 12.16 per share option award in fiscal 2021 and granted 257,000 share option awards with a weighted-average grant-date fair value of $ 1.25 per share option awards in fiscal 2020. The following table details the Company’s share option awards activity for the current fiscal year: Shares Weighted- Weighted- Aggregate Outstanding at January 2, 2022 383,035 $ 3.96 Granted 10,000 13.35 Exercised ( 83,400 ) 4.18 Forfeited ( 9,600 ) 2.81 Outstanding at January 1, 2023 300,035 $ 4.24 6.80 $ 1,580,147 Exercisable at January 1, 2023 112,472 $ 4.32 6.36 $ 547,268 Vested and Expected to Vest at January 1, 2023 299,492 $ 4.24 6.80 $ 1,577,728 The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based upon the Company’s closing stock price of $ 8.83 per share as of January 1, 2023, 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 total intrinsic value of share option awards exercised, the total cash received from employees as a result of employee share option award exercises and the actual tax benefit realized for the tax deduction from share option award exercises in fiscal 2022 was approximately $ 1.0 million, $ 0.3 million and $ 0.2 million, respectively. The fair value of each share option award on the date of grant was estimated using the Black-Scholes method based on the following weighted-average assumptions: Fiscal Year Ended January 1, January 2, January 3, Risk-free interest rate 2.7 % 1.3 % 0.9 % Expected term 6.5 years 6.5 years 5.7 years Expected volatility 80.8 % 75.7 % 63.0 % Expected dividend yield 7.4 % 4.0 % — 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 January 1, 2023, there was $ 0.2 million of total unrecognized compensation expense related to nonvested share option awards granted. That expense is expected to be recognized over a weighted-average period of 1.1 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, 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. Outstanding nonvested share awards and nonvested share unit awards accrue dividends at the same rate as dividends paid to the Company’s shareholders. Accrued dividends on nonvested share awards are paid upon vesting of the underlying shares and forfeited if a recipient’s service to the Company is terminated prior to vesting. Accrued dividends on nonvested share unit awards are reinvested into additional nonvested share unit awards, vest on the same schedule as the underlying share unit awards, and are settled at the same time as the underlying share unit awards. The total fair value of nonvested share awards which vested during fiscal 2022, 2021 and 2020 was $ 3.3 million, $ 5.3 million and $ 0.4 million, respectively. No nonvested share unit awards vested during fiscal 2022. The total fair value of nonvested share unit awards which vested during fiscal 2021 and 2020 was $ 2.1 million and $ 0.2 million, respectively. On January 14, 2022, the Company delivered 124,012 shares on previously vested share unit awards, which included dividend reinvestments, to a Board member who retired in November 2021. The Company granted 284,630 nonvested share awards with a weighted-average grant-date fair value of $ 15.03 per share award in fiscal 2022 , granted 248,550 nonvested share awards with a weighted-average grant-date fair value of $ 15.61 per share award in fiscal 2021 and granted 321,600 nonvested share awards with a weighted-average grant-date fair value of $ 1.69 per share award in fiscal 2020. The following table details the Company’s nonvested share awards activity for the current fiscal year: Shares Weighted- Balance at January 2, 2022 551,700 $ 8.51 Granted 284,630 15.03 Vested ( 216,700 ) 8.19 Forfeited ( 31,955 ) 11.18 Balance at January 1, 2023 587,675 $ 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 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 Company’s consolidated statement of cash flows. As of January 1, 2023 , dividends accrued but not paid related to nonvested share awards were $ 1.4 million. The Company granted no nonvested share unit awards in fiscal 2022 , granted 2,614 nonvested share unit awards with a weighted-average grant-date fair value of $ 28.69 per share unit award in fiscal 2021 and granted 40,000 nonvested share unit awards with a weighted-average grant-date fair value of $ 2.28 per share unit award in fiscal 2020. The weighted-average grant-date fair value of nonvested share awards and nonvested share unit awards is the quoted market price of the Company’s common stock on the date of grant. As of January 1, 2023 , there were 299,084 cumulative vested share unit awards remaining, of which 92,764 of these awards represented cumulative dividend reinvestments. These cumulative vested share unit awards are deliverable to the holders on the tenth business day of January following the year in which the holder’s service to the Company terminates, at which time the units convert to shares of the Company’s common stock and become outstanding. As of January 1, 2023 , there was $ 4.9 million of total unrecognized compensation expense related to nonvested share awards, which is expected to be recognized over a weighted-average period of 2.2 years. There was no remaining unrecognized compensation expense related to nonvested share unit awards. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Jan. 01, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | (14) Subsequent Event In the first quarter of fiscal 2023, 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 March 24, 2023 to stockholders of record as of March 10, 2023 . |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 01, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | BIG 5 SPORTING GOODS CORPORATION SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (In thousands) Balance at Charged to Deductions Balance at January 1, 2023 Allowance for doubtful receivables $ 62 $ 61 $ ( 79 ) $ 44 Allowance for sales returns $ 2,528 $ ( 204 ) (1) $ — $ 2,324 Inventory reserves $ 5,547 $ 3,836 $ ( 3,919 ) $ 5,464 January 2, 2022 Allowance for doubtful receivables $ 58 $ 83 $ ( 79 ) $ 62 Allowance for sales returns $ 2,444 $ 84 (1) $ — $ 2,528 Inventory reserves $ 6,138 $ 3,335 $ ( 3,926 ) $ 5,547 January 3, 2021 Allowance for doubtful receivables $ 58 $ 44 $ ( 44 ) $ 58 Allowance for sales returns $ 2,702 $ ( 258 ) (1) $ — $ 2,444 Inventory reserves $ 6,796 $ 2,954 $ ( 3,612 ) $ 6,138 (1) Represents an increase (decrease) in the required reserve based upon the Company’s evaluation of anticipated merchandise returns. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 01, 2023 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation The accompanying consolidated 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 2022 and fiscal 2021 included 52 weeks, and fiscal 2020 included 53 weeks. |
Recently Issued Accounting Updates | Recently Issued Accounting Updates In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 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, which was established as the original sunset date. The amendments in this standard are elective and are effective upon issuance for all entities, and the impact from this standard was immaterial. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848)—Deferral of the Sunset Date of Topic 848 , which deferred the sunset date of ASC 848 until December 31, 2024. The ASU became effective upon issuance for all entities, and the impact from this standard was immaterial. Other recently issued accounting updates are not expected to have a material impact on the Company’s consolidated 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, but there was less of an impact from such activity in the second half of fiscal 2022. 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 third quarter 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 had significantly increased cargo backlogs. Shipping capacity constraints and labor shortages at the ports contributed to higher freight costs and adversely impacted our ability to obtain sufficient quantities of certain products in our stores to meet customer demand, although to a lesser degree in the second half of fiscal 2022. While our ability to obtain product has improved, 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 maintains its cash accounts in financial institutions, and accounts at these institutions are insured by the Federal Deposit Insurance Corporation up to $ 250,000 . Cash equivalents represent investments of excess cash on hand of $ 75.0 million into U.S. Treasury bills as of January 2, 2022 . There were no cash equivalents as of January 1, 2023. Because of the Company’s geographic concentration in the western United States, the Company is subject to regional risks, such as the economy, including downturns in the housing market, state financial conditions, unemployment and gas prices. Other regional risks include weather conditions, fires, droughts, earthquakes, power outages, floods and other natural disasters specific to the states in which the Company operates. The Company relies on a single distribution center located in Riverside, California, which services all of its stores and e-commerce platform. Any natural disaster or other serious disruption to the distribution center due to fire, earthquake or any other cause could damage a significant portion of inventory and could materially impair the Company’s ability to adequately stock its stores and fulfill its e-commerce business. The Company purchases merchandise from nearly 700 suppliers, and the Company’s 20 largest suppliers accounted for 35.9 % of total purchases in fiscal 2022 . No vendor represented greater than 5 % of total purchases in fiscal 2022. A significant portion of the Company’s inventory is manufactured abroad in Asia. Foreign imports subject the Company to the risks of changes in, or the imposition of new, import tariffs, duties or quotas, new restrictions on imports, loss of “most favored nation” status with the United States for a particular foreign country, antidumping or countervailing duty orders, retaliatory actions in response to illegal trade practices, work stoppages, delays in shipment, freight expense increases, product cost increases due to foreign currency fluctuations or revaluations, public health issues that could lead to temporary closures of facilities or shipping ports, such as the recent outbreak of COVID-19, and other economic uncertainties. If a disruption of trade were to occur from the countries in which the suppliers of the Company’s vendors are located, the Company may be unable to obtain sufficient quantities of products to satisfy its requirements, or the cost of obtaining products may increase. 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, and which led to a significant reduction in supply chain relative to this vendor. This transition did not impact our ability to continue to purchase certain Nike branded products from authorized licensees even though Nike no longer represents a significant percentage of our merchandise purchases. 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. From time to time, shipping ports 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. The Company could be exposed to credit risk in the event of nonperformance by its lender under its revolving credit facility. Instability in the financial and capital markets could bring additional potential risks to the Company, including higher costs of credit, potential lender defaults, and potential commercial bank failures. The Company has received no indication that any such events will negatively impact its lender under its credit facility; however, the possibility does exist. |
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 consolidated financial statements and reported amounts of revenue and expense during the reporting period to prepare these consolidated 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 January 1, 2023 , including those resulting from the impacts of the COVID-19 pandemic, may result in actual outcomes that differ from those contemplated by management’s assumptions and estimates. |
Segment Reporting | Segment Reporting 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, and whose Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer. The CODM reviews financial information presented on a consolidated basis, for purposes of allocating resources and evaluating financial performance. The Company’s stores typically have similar square footage, with the stores and e-commerce platform offering a similar general product mix. The Company’s core customer demographic remains similar across all sales channels, as does the Company’s process for the procurement and marketing of its product mix. Furthermore, the Company distributes its product mix for both the stores and e-commerce platform from a single distribution center. Given the consolidated level of review by the CODM, the Company operates as one reportable segment as defined by ASC 280, Segment Reporting . |
Earnings Per Share | 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. |
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, in 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 reasonably assured since the Company only extends immaterial credit purchases to certain municipalities and local school districts. As noted in the segment information elsewhere in this Note 2 to the Notes to Consolidated Financial Statements, the Company’s business consists of one reportable segment. In accordance with 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: Fiscal Year Ended January 1, January 2, January 3, (In thousands) Hardgoods $ 536,294 $ 637,181 $ 623,728 Athletic and sport footwear 246,302 279,645 228,311 Athletic and sport apparel 209,672 241,526 184,538 Other sales 3,270 3,468 4,635 Net sales $ 995,538 $ 1,161,820 $ 1,041,212 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 transaction price for each contract is the stated price on the product, reduced by any stated discounts at that point in time. The Company does not engage in sales of products that attach a future material right which could result in a separate performance obligation for the purchase of goods in the future at a material discount. The implicit point-of-sale contract with the customer, as reflected in the transaction receipt, states the final terms of the sale, including the description, quantity, and price of each product purchased. Payment for the Company’s contracts is due in full upon delivery. The customer agrees to a stated price implicit in the contract. The transaction price relative to sales subject to a right of return reflects the amount of estimated consideration to which the Company expects to be entitled. This amount of variable consideration included in the transaction price, and measurement of net sales, is included in net sales only to the extent that it is probable that there will be no significant reversal in a future period. Actual amounts of consideration ultimately received may differ from the Company’s estimates. There were no material adjustments to the Company’s previous estimates. The allowance for sales returns is estimated based upon historical experience and a provision for estimated returns is recorded as a reduction in sales in the relevant period. The estimated right-of-return merchandise cost related to the sales returns is recorded as prepaid expense in the Company’s consolidated balance sheet as of January 1, 2023. If actual results in the future vary from the Company’s estimates, the Company adjusts these estimates, which would affect net sales and earnings in the period such variances become known. The Company has elected to apply the practical expedient, relative to e-commerce sales, which allows an entity to account for shipping and handling 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 is not material. Contract liabilities are recognized primarily for stored-value card sales and issuances in exchange for returns. Cash received from the sale or issuance of stored-value cards is recorded as a contract liability in accrued expenses in the Company’s consolidated balance sheets, and the Company recognizes revenue upon the customer’s redemption of the stored-value card. Stored-value card breakage is recognized as revenue in proportion to the pattern of customer redemptions by applying a historical breakage rate of five percent. The Company does not sell or provide stored-value cards that carry expiration dates. The Company recognized $ 6.1 million, $ 5.9 million and $ 5.4 million in stored-value card redemption revenue for fiscal 2022, 2021 and 2020, respectively. The Company also recognized $ 0.3 million in stored-value card breakage revenue for each of fiscal 2022, 2021 and 2020. The Company had outstanding stored-value card liabilities of $ 8.8 million and $ 8.3 million as of January 1, 2023 and January 2, 2022 , respectively, which are included in accrued expenses in the Company’s consolidated balance sheets. Based upon historical experience, stored-value cards are predominantly redeemed in the first two years following their issuance date. The Company recorded, as prepaid expense in the Company’s consolidated balance sheets, estimated right-of-return merchandise cost of $ 1.2 million related to estimated sales returns as of January 1, 2023 and January 2, 2022 , and recorded, as accrued expense in the Company’s consolidated balance sheets, an allowance for sales returns reserve of $ 2.3 million and $ 2.5 million as of January 1, 2023 and January 2, 2022 , respectively. |
Cost of Sales | Cost of Sales Cost of sales includes the cost of merchandise, net of discounts or allowances earned, freight (including e-commerce shipping and handling costs), inventory reserves, buying, distribution center expense, including depreciation and amortization, and store occupancy expense. Store occupancy expense includes rent, amortization of leasehold improvements, common area maintenance, property taxes and insurance. |
Selling and Administrative Expense | Selling and Administrative Expense Selling and administrative expense includes store-related expense, other than store occupancy expense, as well as advertising, depreciation and amortization, expense associated with operating the Company’s corporate headquarters and impairment charges, if any. |
Vendor Allowances | Vendor Allowances The Company receives allowances for co-operative advertising and volume purchase rebates earned through programs with certain vendors. The Company records a receivable for these allowances which are earned but not yet received when it is determined the amounts are probable and reasonably estimable. Amounts relating to the purchase of merchandise are treated as a reduction of inventory cost and reduce cost of goods sold as the merchandise is sold. After reducing advertising significantly in fiscal 2021 and 2020 in response to the COVID-19 pandemic, beginning in the second half of fiscal 2020 and for all periods presented, amounts that represent a reimbursement of costs incurred, such as advertising, are recorded as a reduction of inventory cost and reduce cost of goods sold as the merchandise is sold. |
Advertising Expense | Advertising Expense Advertising is expensed when the advertising first occurs. Advertising expense, net of co-operative advertising allowances, amounted to $ 12.1 million, $ 11.0 million and $ 10.6 million for fiscal 2022, 2021 and 2020 , respectively. The Company reduced advertising significantly in fiscal 2022, 2021 and 2020 in response to the COVID-19 pandemic. Advertising expense is included in selling and administrative expense in the Company’s consolidated statements of operations. The Company receives co-operative advertising allowances from certain product vendors in order to subsidize qualifying advertising and similar promotional expenditures made relating to vendors’ products. Co-operative advertising allowances recognized as a reduction to selling and administrative expense amounted to zero for fiscal 2022 and 2021 and $ 1.1 million for fiscal 2020 . Beginning in the second half of fiscal 2020, as a result of the significant reductions of print advertising in fiscal 2022, 2021 and 2020, the Company treated these advertising allowances as a reduction of inventory cost and cost of goods sold which had an immaterial effect on the Company’s consolidated financial statements. |
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 13 to the Notes to Consolidated Financial Statements for a further discussion on share-based compensation. |
Pre-opening Costs | Pre-opening Costs Pre-opening costs for new stores, which are not material, consist primarily of payroll and recruiting expense, training, marketing, rent, travel and supplies, and are expensed as incurred and included in selling and administrative expense in the Company’s consolidated statements of operations. |
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 maturities of 90 days or less. See Note 4 to the Notes to Consolidated Financial Statements for a further discussion on the fair value of U.S. Treasury bills. Book overdrafts for checks outstanding are classified as current liabilities in the Company’s consolidated balance sheets. |
Accounts Receivable | Accounts Receivable Accounts receivable consist primarily of third party purchasing card receivables, amounts due from inventory vendors for returned products, volume purchase rebates or co-operative advertising, amounts due from lessors for tenant improvement allowances and insurance recovery receivables. Accounts receivable have not historically resulted in any material credit losses. An allowance for doubtful accounts is provided when accounts are determined to be uncollectible. |
Valuation of Merchandise Inventories, Net | Valuation of Merchandise Inventories, Net The Company’s merchandise inventories 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. |
Prepaid Expenses And Other Assets | Prepaid Expenses and Other Assets Prepaid expenses include the prepayment of various operating expenses such as insurance, income and property taxes, software maintenance and supplies, which are expensed when the operating cost is realized, as well as estimated right-of-return merchandise cost related to estimated sales returns. Other assets include the long-term portion of certain prepaid expenses, capitalized deferred financing fees related to the Company’s credit facility and capitalized implementation costs related to information technology (“IT”) system hosting arrangements that are service contracts. While deferred financing fees and implementation costs are capitalized and amortized over the respective terms of their arrangements, costs related to the service element of a hosting arrangement that is a service contract are expensed as incurred. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost and are being depreciated or amortized utilizing the straight-line method over the following estimated useful lives: Land Indefinite Buildings 20 years Leasehold improvements Shorter of estimated useful life or term of lease Furniture and equipment 3 – 10 years Internal-use software 3 – 7 years Maintenance and repairs are expensed as incurred. The Company incurs costs to purchase and develop software for internal use. Costs related to the application development stage are capitalized and amortized over the estimated useful life of the software. Costs related to the design or maintenance of internal-use software are expensed as incurred. See Note 3 to the Notes to Consolidated Financial Statements for a further discussion on property and equipment. |
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 or 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 fiscal 2022, 2021 and 2020 . |
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, IT 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 Company’s consolidated balance sheets. Finance leases are included in property and equipment and finance lease liabilities, current and noncurrent, on the Company’s 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 Company’s consolidated statement 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 Company’s 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 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. In response to the large volume of anticipated lease concessions to be granted related to the effects of the COVID-19 pandemic, and the resultant expected cost and complexity of applying the lease modification requirements in ASC 842, the FASB issued Staff Q&A—Topic 842 and Topic 840: Accounting For Lease Concessions Related to the Effects of the COVID-19 Pandemic , in April 2020 as interpretive guidance to provide clarity in response to the crisis. The FASB staff indicated that it would be acceptable for entities to make an election to account for lease concessions related to the effects of the COVID-19 pandemic consistent with how they would be accounted for as though enforceable rights and obligations for those concessions existed in the original contract. Consequently, for such lease concessions, an entity will not need to reassess each existing contract to determine whether enforceable rights and obligations for concessions exist and an entity can elect to apply or not to apply the lease modification guidance in ASC 842 to those contracts. The election is available for concessions related to the effects of the COVID-19 pandemic that result in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract. In accordance with this interpretive guidance, the Company elected to account for lease concessions related to the effects of the COVID-19 pandemic that resulted in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract consistent with how they would be accounted for as though enforceable rights and obligations for those concessions existed in the original contract. Consequently, for such lease concessions, the Company did not reassess each existing contract to determine whether enforceable rights and obligations for concessions existed and elected not to apply the lease modification guidance in ASC 842 to those contracts. The Company accounted for COVID-19 lease abatements of $ 3.1 million in fiscal 2020 as reductions to variable lease expense and accounted for lease deferrals of $ 0.1 million as of January 1, 2023 and January 2, 2022, respectively, as if no changes to the lease contract were made while continuing to recognize expense during the deferral period and deferring the payment obligation as a liability. See Note 6 to the Notes to Consolidated Financial Statements for a further discussion on leases. |
Self-Insurance Liabilities | Self-Insurance Liabilities The Company is self-insured for certain of its various insurance risks including its estimated workers’ compensation liability risk in some states. The Company also has a self-funded insurance program for a portion of its employee medical benefits. Under these programs, the Company maintains insurance coverage for losses in excess of specified per-occurrence amounts. Estimated expenses incurred under the self-insured workers’ compensation and medical benefits programs, including incurred but not reported claims, are recorded as expense based upon historical experience, trends of paid and incurred claims, and other actuarial assumptions. If actual claims trends under these programs, including the severity or frequency of claims, differ from the Company’s estimates, its financial results may be significantly impacted. The Company’s actuarially-estimated self-insurance liabilities, which are reported gross of expected workers’ compensation insurance reimbursements, are classified on the Company’s consolidated balance sheets as accrued expenses or other long-term liabilities based upon whether they are expected to be paid during or beyond the normal operating cycle of 12 months from the date of the Company’s consolidated financial statements. Self-insurance liabilities totaled $ 11.1 million and $ 10.2 million as of January 1, 2023 and January 2, 2022, respectively, of which $ 4.6 million and $ 4.4 million were recorded as a component of accrued expenses as of January 1, 2023 and January 2, 2022 , respectively, and $ 6.5 million and $ 5.8 million were recorded as a component of other long-term liabilities as of January 1, 2023 and January 2, 2022 , respectively, in the Company’s consolidated balance sheets. |
Income Taxes | Income Taxes Under the asset and liability method prescribed within 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. Certain prior period deferred tax disclosures were reclassified to conform with current period presentation. ASC 740 provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. ASC 740 also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company’s practice is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in selling and administrative expense in the Company’s consolidated statements of operations. As of January 1, 2023 and January 2, 2022 , the Company had no accrued interest or penalties. See Note 8 to the Notes to Consolidated Financial Statements for a further discussion on income taxes. |
Treasury Stock Purchases | Treasury Stock Purchases The Company repurchases its common stock in the open market pursuant to programs approved by its Board of Directors. In the first quarter of fiscal 2022, the Board of Directors authorized a new share repurchase program of up to $ 25.0 million of common stock, which replaced the previous share repurchase program under which a total of $ 7.7 million remained available. Under these programs, the Company may purchase shares from time to time in the open market or in privately negotiated transactions in compliance with the applicable rules and regulations of the Securities and Exchange Commission. The Company may repurchase its common stock for a variety of reasons, including, among other things, its alternative cash requirements, existing business conditions and the current market price of its stock. However, the timing and amount of such purchases, if any, would be at the discretion of management and the Board of Directors. The Company repurchased 295,719 shares of common stock in fiscal 2022, repurchased 361,323 shares of common stock in fiscal 2021 and repurchased no shares of common stock in fiscal 2020. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
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 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: Fiscal Year Ended January 1, January 2, January 3, (In thousands) Hardgoods $ 536,294 $ 637,181 $ 623,728 Athletic and sport footwear 246,302 279,645 228,311 Athletic and sport apparel 209,672 241,526 184,538 Other sales 3,270 3,468 4,635 Net sales $ 995,538 $ 1,161,820 $ 1,041,212 |
Schedule of Estimated Useful Life of Property and Equipment | Property and equipment are stated at cost and are being depreciated or amortized utilizing the straight-line method over the following estimated useful lives: Land Indefinite Buildings 20 years Leasehold improvements Shorter of estimated useful life or term of lease Furniture and equipment 3 – 10 years Internal-use software 3 – 7 years |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net, consist of the following: January 1, January 2, (In thousands) Leasehold improvements $ 184,326 $ 176,066 Furniture and equipment 146,392 142,638 Internal-use software 37,192 37,188 Land 2,750 2,750 Building 1,775 1,775 372,435 360,417 Accumulated depreciation and amortization (1) ( 315,596 ) ( 301,852 ) 56,839 58,565 Assets not placed into service 1,472 1,836 Property and equipment, net $ 58,311 $ 60,401 (1) Includes accumulated amortization for internal-use software development costs of $ 34.4 million and $ 32.7 million as of January 1, 2023 and January 2, 2022 , respectively. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses | The major components of accrued expenses are as follows: January 1, January 2, (In thousands) Payroll and related expense $ 26,525 $ 37,345 Occupancy expense 10,126 10,168 Sales tax 9,964 12,112 Other 23,646 25,416 Accrued expenses $ 70,261 $ 85,041 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | In accordance with ASC 842, the components of lease expense were as follows: Fiscal Year Ended January 1, January 2, January 3, (In thousands) Lease expense: Operating lease expense $ 83,412 $ 81,734 $ 83,030 Variable lease expense 18,803 18,384 15,238 Sublease income — ( 91 ) ( 1,192 ) Operating lease expense 102,215 100,027 97,076 Amortization of right-of-use assets 3,652 2,940 2,721 Interest on lease liabilities 282 260 297 Finance lease expense 3,934 3,200 3,018 Total lease expense $ 106,149 $ 103,227 $ 100,094 (1) Variable lease expense for fiscal 2020 was reduced by $ 3.1 million for lease abatements related to the effects of the COVID-19 pandemic that resulted in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract. See Note 2 to the Notes to Consolidated Financial Statements for a further discussion on lease concessions. |
Schedule of Other Information Related To Leases | In accordance with ASC 842, other information related to leases was as follows: Fiscal Year Ended January 1, January 2, January 3, (In thousands) Operating cash flows from operating leases $ 86,170 $ 85,238 $ 83,028 Financing cash flows from finance leases 3,504 2,887 2,858 Operating cash flows from finance leases 289 271 313 Cash paid for amounts included in the measurement of lease liabilities $ 89,963 $ 88,396 $ 86,199 Right-of-use assets obtained in exchange for new finance lease liabilities $ 3,859 $ 8,723 $ — Right-of-use assets obtained in exchange for new operating lease liabilities $ 74,829 $ 56,953 $ 80,452 Weighted-average remaining lease term—finance leases 3.8 years 3.8 years 2.4 years Weighted-average remaining lease term—operating leases 5.0 years 4.8 years 5.0 years Weighted-average discount rate—finance leases 3.8 % 3.1 % 4.8 % Weighted-average discount rate—operating leases 4.9 % 5.4 % 6.1 % |
Schedule of Maturities For Finance And Operating Leases | In accordance with ASC 842, maturities of finance and operating lease liabilities as of January 1, 2023 were as follows: Fiscal Year Ending: Finance Operating (In thousands) 2023 $ 4,419 $ 82,670 2024 2,446 74,426 2025 1,933 57,419 2026 1,414 41,376 2027 620 24,728 Thereafter 267 41,165 Undiscounted cash flows $ 11,099 $ 321,784 Reconciliation of lease liabilities: Weighted-average remaining lease term 3.8 years 5.0 years Weighted-average discount rate 3.8 % 4.9 % Present values $ 10,306 $ 285,168 Lease liabilities - current 3,217 70,584 Lease liabilities - long-term 7,089 214,584 Lease liabilities - total $ 10,306 $ 285,168 Difference between undiscounted and discounted cash flows $ 793 $ 36,616 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
Loan, Guaranty and Security Agreement [Member] | |
Average Daily Excess Availability for Preceding Fiscal Quarter | Level Average Daily Availability SOFR 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 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense (Benefit) | Income tax expense (benefit) consists of the following: Current Deferred Total (In thousands) Fiscal 2022: Federal $ 2,958 $ 1,905 $ 4,863 State 1,745 201 1,946 $ 4,703 $ 2,106 $ 6,809 Fiscal 2021: Federal $ 23,422 $ 1,121 $ 24,543 State 7,582 613 8,195 $ 31,004 $ 1,734 $ 32,738 Fiscal 2020: Federal $ 13,786 $ 86 $ 13,872 State 4,871 ( 298 ) 4,573 $ 18,657 $ ( 212 ) $ 18,445 |
Schedule of Federal Statutory Tax Rate Reconciliation | The provision for income taxes differs from the amounts computed by applying the federal statutory tax rate of 21 % to earnings before income taxes, as follows: Fiscal Year Ended January 1, January 2, January 3, (In thousands) Tax expense at statutory rate $ 6,918 $ 28,376 $ 15,621 State tax expense, net of federal tax effect 1,734 7,167 3,975 Additional deduction related to share-based compensation ( 1,321 ) ( 2,623 ) — Nondeductible expenses 259 729 86 Tax credits ( 826 ) ( 603 ) ( 246 ) Change in valuation allowance — ( 318 ) ( 418 ) CARES Act net operating loss carryback — — ( 822 ) Write-offs related to nonvested share awards — — 260 Other 45 10 ( 11 ) $ 6,809 $ 32,738 $ 18,445 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consist of the following tax-effected temporary differences: January 1, January 2, (In thousands) Deferred tax assets: Employee benefit-related liabilities $ 2,781 $ 2,889 Insurance liabilities 2,654 2,421 Deferred rent 1,632 2,828 Gift card liability 1,594 1,420 Merchandise inventory 1,103 1,215 Property, plant and equipment 816 814 Share-based compensation 810 805 State taxes 379 1,545 California Enterprise Zone Tax Credits 325 381 Other deferred tax assets 606 686 Gross deferred tax assets 12,700 15,004 Less: Valuation allowance ( 280 ) ( 280 ) Deferred tax assets, net of valuation allowance 12,420 14,724 Deferred tax liabilities: Prepaid expense ( 992 ) ( 1,147 ) Federal liability on state deferred tax assets ( 954 ) ( 996 ) Accrual for software as a service ( 483 ) ( 484 ) Deferred tax liabilities ( 2,429 ) ( 2,627 ) Net deferred tax assets $ 9,991 $ 12,097 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
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: Fiscal Year Ended January 1, January 2, January 3, (In thousands, except per share data) Net income $ 26,134 $ 102,386 $ 55,940 Weighted-average shares of common stock outstanding: Basic 21,634 21,670 21,260 Dilutive effect of common stock equivalents arising 455 842 403 Diluted 22,089 22,512 21,663 Basic earnings per share $ 1.21 $ 4.73 $ 2.63 Diluted earnings per share $ 1.18 $ 4.55 $ 2.58 Antidilutive share option awards excluded 16 2 494 Antidilutive nonvested share and nonvested share unit 185 — 46 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Share Option Awards | The following table details the Company’s share option awards activity for the current fiscal year: Shares Weighted- Weighted- Aggregate Outstanding at January 2, 2022 383,035 $ 3.96 Granted 10,000 13.35 Exercised ( 83,400 ) 4.18 Forfeited ( 9,600 ) 2.81 Outstanding at January 1, 2023 300,035 $ 4.24 6.80 $ 1,580,147 Exercisable at January 1, 2023 112,472 $ 4.32 6.36 $ 547,268 Vested and Expected to Vest at January 1, 2023 299,492 $ 4.24 6.80 $ 1,577,728 |
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 was estimated using the Black-Scholes method based on the following weighted-average assumptions: Fiscal Year Ended January 1, January 2, January 3, Risk-free interest rate 2.7 % 1.3 % 0.9 % Expected term 6.5 years 6.5 years 5.7 years Expected volatility 80.8 % 75.7 % 63.0 % Expected dividend yield 7.4 % 4.0 % — |
Summary of Nonvested Share Awards Activity | The following table details the Company’s nonvested share awards activity for the current fiscal year: Shares Weighted- Balance at January 2, 2022 551,700 $ 8.51 Granted 284,630 15.03 Vested ( 216,700 ) 8.19 Forfeited ( 31,955 ) 11.18 Balance at January 1, 2023 587,675 $ 11.64 |
Description of Business - Addit
Description of Business - Additional Information (Detail) | 12 Months Ended |
Jan. 01, 2023 ft² Store Segment | |
Description Of Business [Line Items] | |
Number of operating stores | Store | 432 |
Area of traditional sporting goods store | ft² | 12,000 |
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) | 12 Months Ended | ||||
Jan. 01, 2023 USD ($) Supplier Segment shares | Jan. 02, 2022 USD ($) shares | Jan. 03, 2021 USD ($) shares | Jan. 03, 2021 | Apr. 03, 2022 USD ($) | |
Accounting Policies [Line Items] | |||||
Reporting period, minimum | 364 days | ||||
Reporting period, maximum | 371 days | ||||
Cash deposits insured by the Federal Deposit Insurance Corporation | $ 250,000 | ||||
Cash and cash equivalents | $ 25,565,000 | $ 97,420,000 | |||
Concentration risk, suppliers | Supplier | 700 | ||||
Concentration risk, largest supplier | Supplier | 20 | ||||
Suppliers accounted for total purchases | 35.90% | ||||
Percentage of vendors represented greater than of total purchases | 5% | ||||
Vendor represented greater than of total purchases | Supplier | 0 | ||||
Number of reportable segment | Segment | 1 | ||||
Number of performance obligation | one | ||||
Percentage of gift card historical breakage rate | 5% | ||||
Stored value card redemption revenue recognized | $ 6,100,000 | 5,900,000 | $ 5,400,000 | ||
Outstanding stored value card liabilities | $ 8,800,000 | 8,300,000 | |||
Stored value cards redeemed period | 2 years | ||||
Advertising expense, net of co-operative advertising allowances | $ 12,100,000 | 11,000,000 | 10,600,000 | ||
Co-operative advertising allowances | 0 | 0 | 1,100,000 | ||
Impairment charges | 0 | 0 | $ 0 | ||
Self-insurance liabilities | 11,100,000 | 10,200,000 | |||
Accrued interest or penalties | $ 0 | $ 0 | |||
Common Stock [Member] | |||||
Accounting Policies [Line Items] | |||||
Number of shares repurchased during period | shares | 295,719 | 361,323 | 0 | ||
Share repurchase program, remaining amount available for repurchase | $ 7,700,000 | ||||
Common Stock [Member] | Current Share Repurchase Program [Member] | |||||
Accounting Policies [Line Items] | |||||
Share repurchase program, additional authorized amount | $ 25,000,000 | ||||
Accrued expenses [Member] | |||||
Accounting Policies [Line Items] | |||||
Self-insurance liabilities | $ 4,600,000 | $ 4,400,000 | |||
Other long-term liabilities [Member] | |||||
Accounting Policies [Line Items] | |||||
Self-insurance liabilities | 6,500,000 | 5,800,000 | |||
Stored Value Card Breakage Revenue [Member] | |||||
Accounting Policies [Line Items] | |||||
Recognized stored value card breakage revenue | 300,000 | 300,000 | $ 300,000 | ||
U.S. Treasury Bills [Member] | |||||
Accounting Policies [Line Items] | |||||
Cash and cash equivalents | 0 | 75,000,000 | |||
COVID-19 [Member] | |||||
Accounting Policies [Line Items] | |||||
Percentage of minimum number of retail store locations closed | 50% | ||||
Lease abatements, to decrease on variable lease expense | $ 3,100,000 | ||||
Deferred, lease liability | 100,000 | 100,000 | |||
Merchandise [Member] | Accounting Standards Update 2014-09 | |||||
Accounting Policies [Line Items] | |||||
Estimated right of return related to estimated sales returns | 1,200,000 | 1,200,000 | |||
Allowance for sales returns reserve | $ 2,300,000 | $ 2,500,000 |
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 | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Accounting Policies [Line Items] | |||
Net sales | $ 995,538 | $ 1,161,820 | $ 1,041,212 |
Hardgoods [Member] | |||
Accounting Policies [Line Items] | |||
Net sales | 536,294 | 637,181 | 623,728 |
Athletic and sport footwear [Member] | |||
Accounting Policies [Line Items] | |||
Net sales | 246,302 | 279,645 | 228,311 |
Athletic and sport apparel [Member] | |||
Accounting Policies [Line Items] | |||
Net sales | 209,672 | 241,526 | 184,538 |
Other sales [Member] | |||
Accounting Policies [Line Items] | |||
Net sales | $ 3,270 | $ 3,468 | $ 4,635 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Estimated Useful Life of Property and Equipment (Detail) | 12 Months Ended |
Jan. 01, 2023 | |
Land [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Indefinite |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Shorter of estimated useful life or term of lease |
Furniture and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Internal-use software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Internal-use software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Jan. 01, 2023 | Jan. 02, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 372,435 | $ 360,417 |
Accumulated depreciation and amortization | (315,596) | (301,852) |
Property and equipment, net excluding assets not placed into service | 56,839 | 58,565 |
Assets not placed into service | 1,472 | 1,836 |
Property and equipment, net | 58,311 | 60,401 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 184,326 | 176,066 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 146,392 | 142,638 |
Internal-use software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 37,192 | 37,188 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,750 | 2,750 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,775 | $ 1,775 |
Property and Equipment, Net -_2
Property and Equipment, Net - Schedule of Property and Equipment (Parenthetical) (Detail) - USD ($) $ in Millions | Jan. 01, 2023 | Jan. 02, 2022 |
Internal-use software development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated amortization for internal-use software development costs | $ 34.4 | $ 32.7 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 8 | $ 7.6 | $ 6.7 |
Amortization expense | 8 | 8 | 8.9 |
Finance leases, gross | 19.1 | 16.5 | |
Accumulated depreciation of finance leases | 8.2 | 6.1 | |
Internal-use software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Amortization expense | $ 2 | $ 2.1 | $ 2.9 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
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 | $ 0 | $ 75,000,000 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Jan. 01, 2023 | Jan. 02, 2022 |
Payables and Accruals [Abstract] | ||
Payroll and related expense | $ 26,525 | $ 37,345 |
Occupancy expense | 10,126 | 10,168 |
Sales tax | 9,964 | 12,112 |
Other | 23,646 | 25,416 |
Accrued expenses | $ 70,261 | $ 85,041 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) | 12 Months Ended |
Jan. 01, 2023 | |
Lessee Lease Description [Line Items] | |
Operating lease, option to extend, description | options to extend the leases for up to 5 years |
Operating lease, option to extend | true |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease term | 12 years |
Operating lease, option to extend | 5 years |
Finance lease term | 6 years |
Lease Commitments - Summary of
Lease Commitments - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Lease expense: | |||
Operating lease expense | $ 83,412 | $ 81,734 | $ 83,030 |
Variable lease expense | 18,803 | 18,384 | 15,238 |
Sublease income | (91) | (1,192) | |
Operating lease expense | 102,215 | 100,027 | 97,076 |
Amortization of right-of-use assets | 3,652 | 2,940 | 2,721 |
Interest on lease liabilities | 282 | 260 | 297 |
Finance lease expense | 3,934 | 3,200 | 3,018 |
Total lease expense | $ 106,149 | $ 103,227 | $ 100,094 |
Lease Commitments - Summary o_2
Lease Commitments - Summary of Components of Lease Expenses (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Jan. 03, 2021 USD ($) | |
COVID-19 [Member] | |
Lessee Lease Description [Line Items] | |
Lease abatements, to decrease on variable lease expense | $ 3.1 |
Lease Commitments - Schedule of
Lease Commitments - Schedule of Other Information Related to Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 86,170 | $ 85,238 | $ 83,028 |
Financing cash flows from finance leases | 3,504 | 2,887 | 2,858 |
Operating cash flows from finance leases | 289 | 271 | 313 |
Cash paid for amounts included in the measurement of lease liabilities | 89,963 | 88,396 | 86,199 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 3,859 | 8,723 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 74,829 | $ 56,953 | $ 80,452 |
Weighted-average remaining lease term—finance leases | 3 years 9 months 18 days | 3 years 9 months 18 days | 2 years 4 months 24 days |
Weighted-average remaining lease term—operating leases | 5 years | 4 years 9 months 18 days | 5 years |
Weighted-average discount rate-finance leases | 3.80% | 3.10% | 4.80% |
Weighted-average discount rate-operating leases | 4.90% | 5.40% | 6.10% |
Lease Commitments - Schedule _2
Lease Commitments - Schedule of Finance and Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 |
Finance Lease Liabilities, Payments, Due [Abstract] | |||
Finance leases, 2023 | $ 4,419 | ||
Finance leases, 2024 | 2,446 | ||
Finance leases, 2025 | 1,933 | ||
Finance leases, 2026 | 1,414 | ||
Finance leases, 2027 | 620 | ||
Finance leases, thereafter | 267 | ||
Finance leases, total lease payments | $ 11,099 | ||
Weighted-average remaining lease term | 3 years 9 months 18 days | 3 years 9 months 18 days | 2 years 4 months 24 days |
Weighted-average discount rate | 3.80% | 3.10% | 4.80% |
Present values | $ 10,306 | ||
Lease liabilities - current | 3,217 | $ 3,518 | |
Lease liabilities - long-term | 7,089 | $ 6,456 | |
Lease liabilities - total | 10,306 | ||
Difference between undiscounted and discounted cash flows | 793 | ||
Operating Lease Liabilities, Payments Due [Abstract] | |||
Operating leases, 2023 | 82,670 | ||
Operating leases, 2024 | 74,426 | ||
Operating leases, 2025 | 57,419 | ||
Operating leases, 2026 | 41,376 | ||
Operating leases, 2027 | 24,728 | ||
Operating leases, thereafter | 41,165 | ||
Operating leases, total lease payments | $ 321,784 | ||
Weighted-average remaining lease term | 5 years | 4 years 9 months 18 days | 5 years |
Weighted-average discount rate | 4.90% | 5.40% | 6.10% |
Present values | $ 285,168 | ||
Lease liabilities - current | 70,584 | $ 76,882 | |
Lease liabilities - long-term | 214,584 | $ 204,134 | |
Lease liabilities - total | 285,168 | ||
Difference between undiscounted and discounted cash flows | $ 36,616 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Feb. 24, 2021 | Apr. 04, 2021 | Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
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. | ||||
Long-term revolving credit borrowings outstanding | $ 0 | $ 0 | |||
Debt issuance costs paid | $ 700,000 | $ 18,000 | $ 746,000 | $ 106,000 | |
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 one-month SOFR 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] | SOFR Adjustment [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin in addition to variable rate | 0.10% | ||||
Loan, Guaranty and Security Agreement [Member] | One-month SOFR 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 |
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 |
SOFR 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 $70,000,000 |
SOFR Rate Applicable Margin | 1.50% |
Base Rate Applicable Margin | 0.50% |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Income Tax Disclosure [Abstract] | |||
Current, Federal | $ 2,958 | $ 23,422 | $ 13,786 |
Current, State | 1,745 | 7,582 | 4,871 |
Current, Total | 4,703 | 31,004 | 18,657 |
Deferred, Federal | 1,905 | 1,121 | 86 |
Deferred, State | 201 | 613 | (298) |
Deferred, Total | 2,106 | 1,734 | (212) |
Total, Federal | 4,863 | 24,543 | 13,872 |
Total, State | 1,946 | 8,195 | 4,573 |
Total income tax expense (benefit) | $ 6,809 | $ 32,738 | $ 18,445 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jan. 01, 2023 | Jan. 02, 2022 | |
Income Tax Contingency [Line Items] | ||
Federal statutory tax rate | 21% | |
Deferred tax assets valuation allowance | $ 280,000 | $ 280,000 |
Unrecognized tax benefits | $ 0 | 0 |
Unrecognized tax benefits, period | over the next 12 months | |
Accrued interest or penalties | $ 0 | 0 |
Earliest Tax Year [Member] | Federal [Member] | ||
Income Tax Contingency [Line Items] | ||
Income tax returns in period | 2019 | |
Earliest Tax Year [Member] | State and Local [Member] | ||
Income Tax Contingency [Line Items] | ||
Income tax returns in period | 2018 | |
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 | 2023 |
Income Taxes - Schedule of Fede
Income Taxes - Schedule of Federal Statutory Tax Rate Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax expense at statutory rate | $ 6,918 | $ 28,376 | $ 15,621 |
State tax expense, net of federal tax effect | 1,734 | 7,167 | 3,975 |
Additional deduction related to share-based compensation | (1,321) | (2,623) | |
Nondeductible expenses | 259 | 729 | 86 |
Tax credits | (826) | (603) | (246) |
Change in valuation allowance | (318) | (418) | |
CARES Act net operating loss carryback | (822) | ||
Write-offs related to nonvested share awards | 260 | ||
Other | 45 | 10 | (11) |
Total income tax expense (benefit) | $ 6,809 | $ 32,738 | $ 18,445 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jan. 01, 2023 | Jan. 02, 2022 |
Deferred tax assets: | ||
Employee benefit-related liabilities | $ 2,781 | $ 2,889 |
Insurance liabilities | 2,654 | 2,421 |
Deferred rent | 1,632 | 2,828 |
Gift card liability | 1,594 | 1,420 |
Merchandise inventory | 1,103 | 1,215 |
Property, plant and equipment | 816 | 814 |
State taxes | 379 | 1,545 |
Share-based compensation | 810 | 805 |
California Enterprise Zone Tax Credits | 325 | 381 |
Other deferred tax assets | 606 | 686 |
Gross deferred tax assets | 12,700 | 15,004 |
Less: Valuation allowance | (280) | (280) |
Deferred tax assets, net of valuation allowance | 12,420 | 14,724 |
Deferred tax liabilities: | ||
Prepaid expense | (992) | (1,147) |
Federal liability on state deferred tax assets | (954) | (996) |
Accrual for software as a service | (483) | (484) |
Deferred tax liabilities | (2,429) | (2,627) |
Net deferred tax assets | $ 9,991 | $ 12,097 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Earnings Per Share Basic [Line Items] | |||
Net income | $ 26,134 | $ 102,386 | $ 55,940 |
Weighted-average shares of common stock outstanding: | |||
Basic | 21,634,000 | 21,670,000 | 21,260,000 |
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards | 455,000 | 842,000 | 403,000 |
Diluted | 22,089,000 | 22,512,000 | 21,663,000 |
Basic earnings per share | $ 1.21 | $ 4.73 | $ 2.63 |
Diluted earnings per share | $ 1.18 | $ 4.55 | $ 2.58 |
Share Option Awards [Member] | |||
Weighted-average shares of common stock outstanding: | |||
Antidilutive shares/unit awards excluded from diluted calculation | 16,000 | 2,000 | 494,000 |
Nonvested Share Awards and Nonvested Share Unit Awards [Member] | |||
Weighted-average shares of common stock outstanding: | |||
Antidilutive shares/unit awards excluded from diluted calculation | 185,000 | 0 | 46,000 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Nonvested Share Awards and Nonvested Share Unit Awards [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive options | 185,000 | 0 | 46,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Retirement Benefits [Abstract] | |||
Employer matching and profit-sharing contributions | $ 2.4 | $ 5.3 | $ 3.7 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Co-founder [Member] - USD ($) | 3 Months Ended | 12 Months Ended | ||
Apr. 04, 2021 | Jan. 01, 2023 | Jan. 03, 2021 | Jan. 31, 2021 | |
Related Party Transaction [Line Items] | ||||
Annual base salary under agreement to be paid to related party | $ 350,000 | |||
Salary base amount under agreement paid to related party | $ 350,000 | |||
Expense recognized to provide future obligations under agreement | 300,000 | |||
Liability of future obligations | $ 1,000,000 | |||
Related party transaction, liability eliminate | $ 1,000,000 | |||
Selling and Administrative Expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, reduce selling and administrative expense | $ 1,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
May 21, 2020 USD ($) | Jul. 31, 2019 Store | Apr. 04, 2021 USD ($) | Jan. 03, 2021 USD ($) | Jun. 28, 2020 USD ($) Store | Dec. 29, 2019 USD ($) | Jan. 02, 2022 USD ($) | Jan. 03, 2021 USD ($) | |
Commitments And Contingencies [Line Items] | ||||||||
Received cash condemnation settlement from Orange County Transport Authority pre-tax gain amount | $ 2,500 | |||||||
Cash condemnation settlement from Orange Country Transport Authority | $ 2,500 | |||||||
Loss on property and equipment | 237 | |||||||
Number of stores destroyed in civil unrest | Store | 7 | |||||||
Number of stores destroyed in fire | Store | 1 | |||||||
Loss contingency, total loss | $ 600 | $ 800 | ||||||
Advance on settlement | $ 500 | |||||||
Deduction on settlement | $ 300 | 200 | ||||||
Proceeds from insurance recovery | $ 1,083 | 1,077 | ||||||
Proceeds related to property damage and business interruption | 2,800 | |||||||
Proceeds from insurance recovery - property and equipment | 200 | 1,700 | 249 | 1,750 | ||||
Gain on recovery of insurance proceeds - lost profit margin and business interruption | 500 | 800 | 460 | 1,077 | ||||
Gain on insurance associated with business interruption | $ 300 | |||||||
Proceeds from cash insurance recovery total, net of insurance deductible | 1,300 | |||||||
Gain on recovery of insurance proceeds - property and equipment | 200 | $ 249 | 1,750 | |||||
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 | |||||||
Other Income [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Received cash condemnation settlement from Orange County Transport Authority pre-tax gain amount | 2,500 | |||||||
Loss on property and equipment | $ 200 | |||||||
Selling and Administrative Expenses [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Attorneys' fees related to fees settlement | $ 100 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||||
Jan. 14, 2022 shares | Nov. 30, 2021 Member | Apr. 30, 2019 shares | Jan. 01, 2023 USD ($) $ / shares shares | Jan. 02, 2022 USD ($) $ / shares shares | Jan. 03, 2021 USD ($) $ / shares shares | Jun. 30, 2022 shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares outstanding | shares | 300,035 | 383,035 | |||||
Compensation expense | $ | $ 2,500,000 | $ 2,000,000 | $ 1,700,000 | ||||
Recognized tax benefit relating to compensation expense | $ | 500,000 | 500,000 | 400,000 | ||||
Net income (loss) reflects net of tax charge | $ | $ 2,000,000 | $ 1,500,000 | $ 1,300,000 | ||||
Basic and diluted income (loss) per share net of tax | $ / shares | $ 0.09 | $ 0.07 | $ 0.06 | ||||
Granted, shares | shares | 10,000 | ||||||
Proceeds from exercise of share option awards | $ | $ 349,000 | $ 2,165,000 | $ 169,000 | ||||
Shares withheld for tax requirements | shares | 77,340 | ||||||
Tax withholding payments for share-based compensation | $ | $ 1,212,000 | 1,046,000 | 97,000 | ||||
Common Stock [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Closing stock price per share | $ / shares | $ 8.83 | ||||||
Cost of sales [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Compensation expense | $ | $ 100,000 | 100,000 | 100,000 | ||||
Selling, General and Administrative Expenses | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Compensation expense | $ | $ 2,400,000 | $ 1,900,000 | $ 1,600,000 | ||||
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 | 10,000 | 257,000 | ||||
Weighted-average grant-date fair value per share | $ / shares | $ 5.46 | $ 12.16 | $ 1.25 | ||||
Intrinsic value of share option awards exercised | $ | $ 1,000,000 | ||||||
Proceeds from exercise of share option awards | $ | 300,000 | ||||||
Tax benefit realized for the expected tax deduction from share option award exercises | $ | 200,000 | ||||||
Unrecognized compensation expense | $ | $ 200,000 | ||||||
Weighted-average period of recognition | 1 year 1 month 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% | ||||||
Nonvested Share Awards [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Nonvested shares outstanding | shares | 587,675 | 551,700 | |||||
Weighted-average period of recognition | 2 years 2 months 12 days | ||||||
Fair value of nonvested share awards | $ | $ 3,300 | $ 5,300,000 | $ 400,000 | ||||
Issuance of nonvested share awards, Shares | shares | 284,630 | 248,550 | 321,600 | ||||
Weighted-average grant-date fair value per share, granted | $ / shares | $ 15.03 | $ 15.61 | $ 1.69 | ||||
Dividends accrued but not paid | $ | $ 1,400,000 | ||||||
Unrecognized compensation expenses | $ | 4,900,000 | ||||||
Nonvested Share Unit Awards [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Fair value of nonvested share awards | $ | $ 0 | $ 2,100,000 | $ 200,000 | ||||
Issuance of nonvested share awards, Shares | shares | 0 | 2,614 | 40,000 | ||||
Weighted-average grant-date fair value per share, granted | $ / shares | $ 28.69 | $ 2.28 | |||||
Cumulative vested share unit awards | shares | 299,084 | ||||||
Cumulative dividend reinvestment awards | shares | 92,764 | ||||||
Unrecognized compensation expenses | $ | $ 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 | ||||||
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% | ||||||
2019 Equity Incentive Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Aggregate amount of shares authorized for issuance | shares | 7,148,803 | ||||||
Number of additional shares available for future grant | shares | 3,300,000 | ||||||
Shares available for future grant | shares | 4,350,658 | ||||||
Expiration date of plan | Apr. 11, 2029 | ||||||
Shares limited for every one share granted | 250% | ||||||
2019 Equity Incentive Plan [Member] | Share Option Awards [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares outstanding | shares | 300,035 | ||||||
2019 Equity Incentive Plan [Member] | Nonvested Share Awards [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Nonvested shares outstanding | shares | 587,675 | ||||||
2019 Equity Incentive Plan [Member] | Nonvested Share Unit Awards [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Nonvested shares outstanding | shares | 0 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans - Summary of Share Option Awards (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Jan. 01, 2023 USD ($) $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Shares, Outstanding at January 2, 2022 | shares | 383,035 |
Shares, Granted | shares | 10,000 |
Shares, Exercised | shares | (83,400) |
Shares, Forfeited | shares | (9,600) |
Shares, Outstanding at January 1, 2023 | shares | 300,035 |
Shares, Exercisable at January 1, 2023 | shares | 112,472 |
Shares, Vested and Expected to Vest at January 1, 2023 | shares | 299,492 |
Weighted-Average Exercise Price, Outstanding at January 2, 2022 | $ / shares | $ 3.96 |
Weighted-Average Exercise Price, Granted | $ / shares | 13.35 |
Weighted-Average Exercise Price, Exercised | $ / shares | 4.18 |
Weighted-Average Exercise Price, Forfeited | $ / shares | 2.81 |
Weighted-Average Exercise Price, Outstanding at January 1, 2023 | $ / shares | 4.24 |
Weighted-Average Exercise Price, Exercisable at January 1, 2023 | $ / shares | 4.32 |
Weighted-Average Exercise Price, Vested and Expected to Vest at January 1, 2023 | $ / shares | $ 4.24 |
Weighted-Average Remaining Contractual Life (In Years), Outstanding at January 1, 2023 | 6 years 9 months 18 days |
Weighted-Average Remaining Contractual Life (In Years), Exercisable at January 1, 2023 | 6 years 4 months 9 days |
Weighted-Average Remaining Contractual Life (In Years), Vested and Expected to Vest at January 1, 2023 | 6 years 9 months 18 days |
Aggregate Intrinsic Value, Outstanding at January 1, 2023 | $ | $ 1,580,147 |
Aggregate Intrinsic Value, Exercisable at January 1, 2023 | $ | 547,268 |
Aggregate Intrinsic Value, Vested and Expected to Vest at January 1, 2023 | $ | $ 1,577,728 |
Share-Based Compensation Plan_4
Share-Based Compensation Plans - Fair Value of Share Option Award Based on Weighted-Average Assumptions (Detail) | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Risk-free interest rate | 2.70% | 1.30% | 0.90% |
Expected term | 6 years 6 months | 6 years 6 months | 5 years 8 months 12 days |
Expected volatility | 80.80% | 75.70% | 63% |
Expected dividend yield | 7.40% | 4% |
Share-Based Compensation Plan_5
Share-Based Compensation Plans - Summary of Nonvested Share Awards Activity (Detail) - $ / shares | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Nonvested Share Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested shares/share units, beginning balance | 551,700 | ||
Granted, shares/share units | 284,630 | 248,550 | 321,600 |
Vested, shares/share units | (216,700) | ||
Forfeited, shares/share units | (31,955) | ||
Nonvested shares/share units, ending balance | 587,675 | 551,700 | |
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 | $ 1.69 |
Weighted-Average Grant-Date Fair Value, Vested | 8.19 | ||
Weighted-Average Grant-Date Fair Value, Forfeited | 11.18 | ||
Weighted-Average Grant-Date Fair Value, Ending Balance | $ 11.64 | $ 8.51 | |
Nonvested Share Unit Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, shares/share units | 0 | 2,614 | 40,000 |
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, Granted | $ 28.69 | $ 2.28 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Common Stock [Member] | ||
Subsequent Event [Line Items] | ||
Share repurchase program, remaining amount available for repurchase | $ 7.7 | |
Scenario Forecast [Member] | ||
Subsequent Event [Line Items] | ||
Dividend per share | $ 0.25 | |
Dividend declared per share, payable date | Mar. 24, 2023 | |
Dividend declared per share, record date | Mar. 10, 2023 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Allowance for doubtful receivables [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 62 | $ 58 | $ 58 |
Charged to Costs and Expenses | 61 | 83 | 44 |
Deductions | (79) | (79) | (44) |
Balance at End of Period | 44 | 62 | 58 |
Allowance for sales returns [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 2,528 | 2,444 | 2,702 |
Charged to Costs and Expenses | (204) | 84 | (258) |
Balance at End of Period | 2,324 | 2,528 | 2,444 |
Inventory reserves [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 5,547 | 6,138 | 6,796 |
Charged to Costs and Expenses | 3,836 | 3,335 | 2,954 |
Deductions | (3,919) | (3,926) | (3,612) |
Balance at End of Period | $ 5,464 | $ 5,547 | $ 6,138 |