Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 23, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | BGFV | |
Entity Registrant Name | BIG 5 SPORTING GOODS CORPORATION | |
Entity Central Index Key | 0001156388 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --01-01 | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Security Exchange Name | NASDAQ | |
Entity Address, State or Province | CA | |
Entity File Number | 000-49850 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4388794 | |
Entity Address, Address Line One | 2525 East El Segundo Boulevard | |
Entity Address, City or Town | El Segundo | |
Entity Address, Postal Zip Code | 90245 | |
City Area Code | 310 | |
Local Phone Number | 536-0611 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 22,708,865 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash | $ 4,938 | $ 9,201 |
Accounts receivable, net of allowances of $69 and $48, respectively | 10,453 | 9,163 |
Merchandise inventories, net | 289,572 | 275,759 |
Prepaid expenses | 13,845 | 16,052 |
Total current assets | 318,808 | 310,175 |
Operating lease right-of-use assets, net | 265,557 | 253,615 |
Property and equipment, net | 56,785 | 58,595 |
Deferred income taxes | 19,790 | 13,427 |
Other assets, net of accumulated amortization of $2,487 and $1,954, respectively | 8,428 | 8,871 |
Total assets | 669,368 | 644,683 |
Current liabilities: | ||
Accounts payable | 92,003 | 55,201 |
Accrued expenses | 59,317 | 61,283 |
Current portion of operating lease liabilities | 65,971 | 70,372 |
Current portion of finance lease liabilities | 3,712 | 3,843 |
Total current liabilities | 221,003 | 190,699 |
Operating lease liabilities, less current portion | 206,893 | 191,178 |
Finance lease liabilities, less current portion | 10,372 | 11,856 |
Other long-term liabilities | 6,061 | 6,536 |
Total liabilities | 444,329 | 400,269 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.01 par value, authorized 50,000,000 shares; issued 27,016,120 and 26,747,617 shares, respectively; outstanding 22,708,865 and 22,440,362 shares, respectively | 269 | 267 |
Additional paid-in capital | 129,880 | 128,737 |
Retained earnings | 149,147 | 169,667 |
Less: Treasury stock, at cost; 4,307,255 shares | (54,257) | (54,257) |
Total stockholders' equity | 225,039 | 244,414 |
Total liabilities and stockholders' equity | $ 669,368 | $ 644,683 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 69 | $ 48 |
Accumulated amortization on other assets | $ 2,487 | $ 1,954 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 27,016,120 | 26,747,617 |
Common stock, shares outstanding | 22,708,865 | 22,440,362 |
Treasury stock, shares | 4,307,255 | 4,307,255 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Income Statement [Abstract] | ||||
Net sales | $ 199,824 | $ 223,567 | $ 393,251 | $ 448,506 |
Cost of sales | 141,100 | 151,664 | 274,129 | 301,459 |
Gross profit | 58,724 | 71,903 | 119,122 | 147,047 |
Selling and administrative expense | 72,227 | 72,366 | 143,606 | 147,539 |
Operating loss | (13,503) | (463) | (24,484) | (492) |
Interest expense (income) | 82 | (55) | 205 | (170) |
Loss before income taxes | (13,585) | (408) | (24,689) | (322) |
Income tax benefit | (3,581) | (126) | (6,399) | (233) |
Net loss | $ (10,004) | $ (282) | $ (18,290) | $ (89) |
Loss per share: | ||||
Basic | $ (0.46) | $ (0.01) | $ (0.84) | $ 0 |
Diluted | $ (0.46) | $ (0.01) | $ (0.84) | $ 0 |
Weighted-average shares of common stock outstanding: | ||||
Basic | 21,956 | 21,762 | 21,894 | 21,696 |
Diluted | 21,956 | 21,762 | 21,894 | 21,696 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock Outstanding [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock, At Cost [Member] |
Beginning Balance at Jan. 01, 2023 | $ 268,784 | $ 264 | $ 126,512 | $ 196,265 | $ (54,257) | |
Beginning Balance, Shares at Jan. 01, 2023 | 22,184,495 | |||||
Net loss | (89) | (89) | ||||
Dividends on common stock | (11,129) | (11,129) | ||||
Issuance of nonvested share awards | 3 | (3) | ||||
Issuance of nonvested share awards, Shares | 327,112 | |||||
Exercise of share option awards | 93 | 1 | 92 | |||
Exercise of share option awards, Shares | 30,675 | |||||
Share-based compensation | 1,383 | 1,383 | ||||
Forfeiture of nonvested share awards, Shares | (10,225) | |||||
Retirement of common stock for payment of withholding tax | (627) | (1) | (626) | |||
Retirement of common stock for payment of withholding tax, Shares | (80,065) | |||||
Ending Balance at Jul. 02, 2023 | 258,415 | 267 | 127,358 | 185,047 | (54,257) | |
Ending Balance, shares at Jul. 02, 2023 | 22,451,992 | |||||
Beginning Balance at Apr. 02, 2023 | 263,554 | 266 | 126,627 | 190,918 | (54,257) | |
Beginning Balance, Shares at Apr. 02, 2023 | 22,394,171 | |||||
Net loss | (282) | (282) | ||||
Dividends on common stock | (5,589) | (5,589) | ||||
Issuance of nonvested share awards | 1 | (1) | ||||
Issuance of nonvested share awards, Shares | 53,952 | |||||
Exercise of share option awards | 35 | 35 | ||||
Exercise of share option awards, Shares | 11,875 | |||||
Share-based compensation | 704 | 704 | ||||
Forfeiture of nonvested share awards, Shares | (7,145) | |||||
Retirement of common stock for payment of withholding tax | (7) | (7) | ||||
Retirement of common stock for payment of withholding tax, Shares | (861) | |||||
Ending Balance at Jul. 02, 2023 | 258,415 | 267 | 127,358 | 185,047 | (54,257) | |
Ending Balance, shares at Jul. 02, 2023 | 22,451,992 | |||||
Beginning Balance at Dec. 31, 2023 | 244,414 | 267 | 128,737 | 169,667 | (54,257) | |
Beginning Balance, Shares at Dec. 31, 2023 | 22,440,362 | |||||
Net loss | (18,290) | (18,290) | ||||
Dividends on common stock | (2,230) | (2,230) | ||||
Issuance of nonvested share awards | 3 | (3) | ||||
Issuance of nonvested share awards, Shares | 366,660 | |||||
Exercise of share option awards | $ 12 | 12 | ||||
Exercise of share option awards, Shares | 5,725 | 5,725 | ||||
Share-based compensation | $ 1,444 | 1,444 | ||||
Forfeiture of nonvested share awards, Shares | (16,985) | |||||
Retirement of common stock for payment of withholding tax | $ (311) | (1) | (310) | |||
Retirement of common stock for payment of withholding tax, Shares | (86,897) | (86,897) | ||||
Ending Balance at Jun. 30, 2024 | $ 225,039 | 269 | 129,880 | 149,147 | (54,257) | |
Ending Balance, shares at Jun. 30, 2024 | 22,708,865 | |||||
Beginning Balance at Mar. 31, 2024 | 235,437 | 269 | 129,150 | 160,275 | (54,257) | |
Beginning Balance, Shares at Mar. 31, 2024 | 22,625,042 | |||||
Net loss | (10,004) | (10,004) | ||||
Dividends on common stock | (1,124) | |||||
Issuance of nonvested share awards, Shares | 90,000 | |||||
Exercise of share option awards | 7 | 7 | ||||
Exercise of share option awards, Shares | 3,300 | |||||
Share-based compensation | 726 | 726 | ||||
Forfeiture of nonvested share awards, Shares | (8,585) | |||||
Retirement of common stock for payment of withholding tax | (3) | (3) | ||||
Retirement of common stock for payment of withholding tax, Shares | (892) | |||||
Ending Balance at Jun. 30, 2024 | $ 225,039 | $ 269 | $ 129,880 | $ 149,147 | $ (54,257) | |
Ending Balance, shares at Jun. 30, 2024 | 22,708,865 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Retained Earnings [Member] | ||||
Dividends per share | $ 0.05 | $ 0.25 | $ 0.1 | $ 0.5 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jul. 02, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (18,290,000) | $ (89,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 8,834,000 | 9,141,000 |
Share-based compensation | 1,444,000 | 1,383,000 |
Amortization of other assets | 533,000 | 222,000 |
Noncash lease expense | 34,688,000 | 34,936,000 |
Deferred income taxes | (6,363,000) | (236,000) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (1,140,000) | (3,949,000) |
Merchandise inventories, net | (13,813,000) | (21,122,000) |
Prepaid expenses and other assets | 2,117,000 | (318,000) |
Accounts payable | 26,705,000 | 22,284,000 |
Operating lease liabilities | (35,466,000) | (35,748,000) |
Accrued expenses and other long-term liabilities | (2,176,000) | (9,810,000) |
Net cash used in operating activities | (2,927,000) | (3,306,000) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (6,266,000) | (4,738,000) |
Net cash used in investing activities | (6,266,000) | (4,738,000) |
Cash flows from financing activities: | ||
Changes in book overdraft | 10,167,000 | 2,493,000 |
Principal payments under finance lease liabilities | (2,135,000) | (2,007,000) |
Proceeds from exercise of share option awards | 12,000 | 93,000 |
Tax withholding payments for share-based compensation | (311,000) | (627,000) |
Dividends paid | (2,803,000) | (11,585,000) |
Net cash provided by (used in) financing activities | 4,930,000 | (11,633,000) |
Net decrease in cash and cash equivalents | (4,263,000) | (19,677,000) |
Cash and cash equivalents at beginning of period | 9,201,000 | 25,565,000 |
Cash at end of period | 4,938,000 | 5,888,000 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Property and equipment acquired under finance leases | 520,000 | 1,112,000 |
Property and equipment additions unpaid | 949,000 | 1,326,000 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 598,000 | 308,000 |
Income taxes paid | $ 10,000 | $ 24,000 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (10,004) | $ (282) | $ (18,290) | $ (89) |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2024 | |
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 425 stores and an e-commerce platform as of June 30, 2024 . 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 through Big 5 Corp., its 100 %-owned subsidiary, and Big 5 Services Corp., which is a 100 %-owned subsidiary of Big 5 Corp. Big 5 Services Corp. provides a centralized operation for the issuance and administration of gift cards and returned merchandise credits (collectively, “stored-value cards”). The accompanying interim unaudited condensed consolidated financial statements (“Interim Financial Statements”) of the Company and its 100%-owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and are presented in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these Interim Financial Statements do not include all of the information and notes required by GAAP for complete financial statements. These Interim Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K. In the opinion of management, the Interim Financial Statements included herein contain all adjustments, including normal recurring adjustments, considered necessary to present fairly the Company’s financial position, the results of operations and cash flows for the periods presented. The operating results and cash flows of the interim periods presented herein are not necessarily indicative of the results to be expected for any other interim period or the full year. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Consolidation The accompanying Interim Financial Statements include the accounts of Big 5 Sporting Goods Corporation, Big 5 Corp. and Big 5 Services Corp. Intercompany balances and transactions have been eliminated in consolidation. Reporting Period The Company follows the concept of a 52 - 53 week fiscal year, which ends on the Sunday nearest December 31. Fiscal year 2024 is comprised of 52 weeks and ends on December 29, 2024. Fiscal year 2023 was comprised of 52 weeks and ended on December 31, 2023. The interim periods in fiscal 2024 and 2023 are each comprised of 13 weeks. Recently Issued Accounting Updates In October 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-06, Disclosure Improvements—Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative , which incorporates into the Accounting Standards Codification (“ASC”) certain incremental disclosure requirements introduced by the Securities and Exchange Commission (“SEC”) as part of its disclosure update and simplification initiative. The amendments in this update are intended to clarify or improve presentation and disclosure requirements around a variety of ASC Topics, improve entity comparability for users, and align ASC requirements with SEC regulations. For entities subject to the SEC’s existing disclosure requirements, the effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the ASC and not become effective. Early adoption is prohibited. The Company does not expect the issuance of this ASU to have a material impact on its consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280)—Improvements to Reportable Segment Disclosures , which aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments in the ASU enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The ASU applies to all public entities that are required to report segment information in accordance with ASC 280, and is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company has not early adopted the ASU for interim periods. The Company will adopt this ASU for its annual period ending December 29, 2024, and the Company is evaluating the future impact of the issuance of this ASU on its consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740)—Improvements to Income Tax Disclosures , which include improvements to income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. This ASU also includes certain other amendments to better align disclosures with Regulation S-X and to remove disclosures no longer considered cost beneficial or relevant. This ASU is effective for public entities for annual periods beginning after December 15, 2024, with earlier or retrospective application permitted. The amendments in this ASU should be applied prospectively for annual financial statements not yet issued or made available for issuance. The Company is evaluating the future impact of the issuance of this ASU on its consolidated financial statements. Other recently issued accounting updates are not expected to have a material impact on the Company’s Interim Financial Statements. General Concentration of Risk The Company purchases merchandise from over 600 suppliers, and the Company’s 20 largest suppliers accounted for 39.3 % of total purchases in fiscal 2023. One vendor represented greater than 5 % of total purchases in fiscal 2023, at 5.1 %. A substantial amount of the Company’s inventory is manufactured abroad and, from time to time, shipping ports may experience capacity constraints (such as delays associated with the novel coronavirus “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 conflicts in Ukraine and the Middle East, could significantly disrupt operations at shipping ports or otherwise impact transportation of the imported merchandise we sell, either through supply chain disruptions, or rising freight and fuel costs. Use of Estimates Management makes a number of estimates and assumptions relating to the reporting of assets, liabilities and stockholders’ equity and the disclosure of contingent assets and liabilities at the date of the Interim Financial Statements and reported amounts of revenue and expense during the reporting period to prepare these Interim Financial Statements in conformity with GAAP. Certain items subject to such estimates and assumptions include the carrying amount of merchandise inventories, property and equipment, lease assets and lease liabilities; valuation allowances for receivables, sales returns and deferred income tax assets; estimates related to stored-value cards and the valuation of share-based compensation awards; and obligations related to litigation, self-insurance liabilities and employee benefits. Due to the inherent uncertainty involved in making assumptions and estimates, events and changes in circumstances arising after June 30, 2024 may result in actual outcomes that differ from those contemplated by management’s assumptions and estimates. Revenue Recognition The Company operates solely as a sporting goods retailer, which includes both retail stores and an e-commerce platform, that offers a broad range of products in the western United States and online. Generally, all revenue is recognized when control of the promised goods is transferred to customers, for an amount that reflects the consideration in exchange for those goods. Accordingly, the Company implicitly enters into a contract with customers to deliver merchandise inventory at the point of sale. Collectability is probable since the Company only extends immaterial credit purchases to certain municipalities and local school districts. In accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers , the Company disaggregates net sales into the following major merchandise categories to depict the nature and amount of revenue and related cash flows: 13 Weeks Ended 26 Weeks Ended June 30, July 2, June 30, July 2, (In thousands) Hardgoods $ 116,105 $ 131,233 $ 203,897 $ 233,996 Athletic and sport footwear 48,140 53,123 100,757 112,105 Athletic and sport apparel 34,769 38,017 86,225 99,325 Other sales 810 1,194 2,372 3,080 Net sales $ 199,824 $ 223,567 $ 393,251 $ 448,506 Substantially all of the Company’s revenue is for single performance obligations for the following distinct items: • Retail store sales • E-commerce sales • Stored-value cards For performance obligations related to retail store and e-commerce sales contracts, the Company typically transfers control, for retail stores, upon consummation of the sale when the product is paid for and taken by the customer and, for e-commerce sales, when the product is tendered for delivery to the common carrier. For performance obligations related to stored-value cards, the Company typically transfers control upon redemption of the stored-value card through consummation of a future sales transaction. The Company accounts for shipping and handling relative to e-commerce sales as fulfillment activities, and not a separate performance obligation. Accordingly, the Company recognizes revenue for only one performance obligation, the sale of the product, at shipping point (when the customer gains control). Revenue associated with e-commerce sales was not material for the 13 and 26 weeks ended June 30, 2024 and July 2, 2023. The Company recognized $ 1.3 million and $ 2.7 million in stored-value card redemption revenue for the 13 and 26 weeks ended June 30, 2024 , respectively, compared to $ 1.4 million and $ 3.1 million in stored-value card redemption revenue for the 13 and 26 weeks ended July 2, 2023, respectively. The Company also recognized $ 0.1 million and $ 0.2 million in stored-value card breakage revenue for the 13 and 26 weeks ended June 30, 2024 , respectively, compared to $ 0.1 million and $ 0.2 million in stored-value card breakage revenue for the 13 and 26 weeks ended July 2, 2023, respectively. The Company had outstanding stored-value card liabilities of $ 8.8 million and $ 9.2 million as of June 30, 2024 and December 31, 2023 , respectively, which are included in accrued expenses in the accompanying interim unaudited condensed consolidated balance sheets. Based upon historical experience, stored-value cards are predominantly redeemed in the first two years following their issuance date. In the accompanying interim unaudited condensed consolidated balance sheets, the Company recorded, as prepaid expense, estimated right-of-return merchandise cost of $ 0.7 million and $ 0.9 million related to estimated sales returns as of June 30, 2024 and December 31, 2023, respectively, and recorded, in accrued expenses, an allowance for sales returns reserve of $ 1.4 million and $ 1.7 million as of June 30, 2024 and December 31, 2023 , respectively. Share-Based Compensation The Company accounts for its share-based compensation in accordance with ASC 718, Compensation—Stock Compensation . The Company recognizes compensation expense on a straight-line basis over the requisite service period using the fair-value method for share option awards, nonvested share awards and nonvested share unit awards granted with service-only conditions. See Note 11 to the Interim Financial Statements for a further discussion on share-based compensation. 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. Valuation of Long-Lived Assets In accordance with ASC 360, Property, Plant, and Equipment , the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Long-lived assets are reviewed for recoverability at the lowest level in which there are identifiable cash flows (“asset group”), usually at the store level. The carrying amount of a store asset group includes stores’ property and equipment, primarily leasehold improvements, and operating lease right-of-use (“ROU”) assets. The carrying amount of a store asset group is not considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the store asset group. Factors that could trigger an impairment review include a current-period operating or cash flow loss combined with a history of operating and cash flow losses, and a projection that demonstrates continuing losses or insufficient income over the remaining reasonably certain lease term associated with the use of a store asset group. Other factors may include an adverse change in the business climate or an adverse action or assessment by a regulator in the market of a store asset group. When stores are identified as having an indicator of impairment, the Company forecasts undiscounted cash flows over the store asset group’s remaining reasonably certain lease term and compares the undiscounted cash flows to the carrying amount of the store asset group. If the store asset group is determined not to be recoverable, then an impairment charge will be recognized in the amount by which the carrying amount of the store asset group exceeds its fair value, determined using discounted cash flow valuation techniques, as contemplated in ASC 820, Fair Value Measurements . The Company determines the cash flows expected to result from the store asset group by projecting future revenue, gross margin and operating expense for each store asset group under evaluation for impairment. The estimates of future cash flows involve management judgment and are based upon assumptions about expected future operating performance. Assumptions used in these forecasts are consistent with internal planning, and include assumptions about sales growth rates, gross margins and operating expense in relation to the current economic environment and the Company’s future expectations, competitive factors in its various markets, inflation, sales trends and other relevant environmental factors that may impact the store under evaluation. The actual cash flows could differ from management’s estimates due to changes in business conditions, operating performance and economic conditions. If economic conditions deteriorate in the markets in which the Company conducts business, or if other negative market conditions develop, the Company may experience additional impairment charges in the future for underperforming stores. The resulting impairment charge, if any, is allocated to the property and equipment, primarily leasehold improvements, and operating lease ROU assets on a pro-rata basis using the relative carrying amounts of those assets. The allocated impairment charge to a long-lived asset is limited to the extent that the impairment charge does not reduce the carrying amount of the individual long-lived asset below its individual fair value. The estimation of the fair value of an ROU asset involves the evaluation of current market value rental amounts for leases associated with ROU assets. The estimates of current market value rental amounts are primarily based on recent observable market rental data of other comparable retail store locations. The fair value of an ROU asset is measured using a discounted cash flow valuation technique by discounting the estimated current and future market rental values using a property-specific discount rate. The Company did no t recognize any impairment charges in the first half of fiscal 2024 or 2023 . Leases In accordance with ASC 842, Leases , the Company determines if an arrangement is a lease at inception. The Company has operating and finance leases for the Company’s retail store facilities, distribution center, corporate offices, information technology (“IT”) systems hardware, and distribution center delivery tractors and equipment. Operating leases are included in operating lease ROU assets and operating lease liabilities, current and noncurrent, on the interim unaudited condensed consolidated balance sheets. Finance leases are included in property and equipment and finance lease liabilities, current and noncurrent, on the interim unaudited condensed consolidated balance sheets. Lease liabilities are calculated using the effective interest method, regardless of classification, while the amortization of ROU assets varies depending upon classification. Finance lease classification results in a front-loaded expense recognition pattern over the lease term which amortizes the ROU asset by recognizing interest expense and amortization expense as separate components of lease expense and calculates the amortization expense component on a straight-line basis. Conversely, operating lease classification results in a straight-line expense recognition pattern over the lease term and recognizes lease expense as a single expense component, which results in amortization of the ROU asset that equals the difference between lease expense and interest expense. Lease expense for finance and operating leases are included in cost of sales or selling and administrative expense, based on the use of the leased asset, on the interim unaudited condensed consolidated statements of operations. Variable payments such as property taxes, insurance and common area maintenance related to triple net leases, as well as certain equipment sales taxes, licenses, fees and repairs, are expensed as incurred, and leases with an initial term of 12 months or less are excluded from minimum lease payments and are not recorded on the interim unaudited condensed consolidated balance sheets. The Company recognizes variable lease expense for these short-term leases on a straight-line basis over the remaining lease term. ROU assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the reasonably certain lease term. As the Company’s leases generally do not provide an implicit rate, the Company uses a collateralized incremental borrowing rate (“IBR”) to determine the present value of lease payments. The collateralized IBR is based on a synthetic credit rating that is externally prepared on an annual basis. This analysis considers qualitative and quantitative factors based on guidance provided by a rating agency for the consumer durables industry. The Company adjusts the selected IBR quarterly with a company-specific unsecured yield curve that approximates the Company’s market risk profile. The collateralized IBR is also based upon the estimated impact that the collateral has on the IBR. To account for the collateralized nature of the IBR, the Company utilized a notching method based on notching guidance provided by a rating agency whereby the Company’s base credit rating is notched upward as the yield curve on a secured loan is expected to be lower versus an unsecured loan. The operating lease ROU asset also includes any prepaid lease payments made and is reduced by lease incentives such as tenant improvement allowances. The operating lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. Certain of the leases for the Company’s retail store facilities provide for payments based on future sales volumes at the leased location, which are not measurable at the inception of the lease. Under ASC 842, these contingent rents are expensed as they accrue. See Note 6 to the Interim Financial Statements for a further discussion on leases. |
Impairment of Assets
Impairment of Assets | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Impairment of Assets | (3) Impairment of Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. No impairment charges related to long-lived assets were recognized as of June 30, 2024 . In the fourth quarter of fiscal 2023, the Company recognized non-cash impairment charges of $ 0.6 million related to certain underperforming stores. These impairment charges represented property, equipment and leasehold improvements of $ 0.5 million and ROU assets of $ 0.1 million, and were included in selling and administrative expense in the consolidated statements of operations in fiscal 2023. The lower-than-expected sales performance, coupled with future unfavorable undiscounted cash flow projections, indicated that the carrying value of these stores’ assets exceeded their estimated fair values as determined by their future discounted cash flow projections. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (4) Fair Value Measurements The carrying values of cash, accounts receivable, accounts payable and accrued expenses approximate the fair values of these instruments due to their short-term nature. Book overdrafts for checks outstanding are classified as current liabilities in the Company’s interim unaudited condensed consolidated balance sheets. The carrying amount for borrowings, if any, under the Company’s credit facility approximates fair value because of the variable market interest rate charged to the Company for these borrowings. When the Company recognizes impairment on certain of its underperforming stores, the carrying values of these stores are reduced to their estimated fair values. The Company’s only significant assets or liabilities measured at fair value on a nonrecurring basis subsequent to their initial recognition were assets subject to long-lived asset impairment related to certain underperforming stores. The Company estimates the fair values of these long-lived assets based on the Company’s own judgments about the assumptions that market participants would use in pricing the asset and on observable real estate market data of underperforming stores’ specific comparable markets, when available. The Company classifies these fair value measurements as Level 3 inputs, which are unobservable inputs for which market data are not available and that are developed using the best information available about pricing assumptions used by market participants in accordance with ASC 820. As of June 30, 2024 , there were no long-lived assets subject to impairment and as of December 31, 2023 , there were $ 0.6 million of long-lived assets subject to impairment. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | (5) Accrued Expenses The major components of accrued expenses are as follows: June 30, December 31, (In thousands) Payroll and related expense $ 21,119 $ 22,331 Occupancy expense 8,199 8,655 Sales tax 5,139 7,581 Other 24,860 22,716 Accrued expenses $ 59,317 $ 61,283 |
Lease Commitments
Lease Commitments | 6 Months Ended |
Jun. 30, 2024 | |
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 systems hardware, and distribution center delivery tractors and equipment, and accounts for these leases in accordance with ASC 842. Certain of the leases for the Company’s retail store facilities provide for variable payments for property taxes, insurance, common area maintenance payments related to triple net leases, rental payments based on future sales volumes at the leased location, as well as certain equipment sales taxes, licenses, fees and repairs, which are not measurable at the inception of the lease, or rental payments that are adjusted periodically for inflation. The Company recognizes variable lease expense for these leases in the period incurred which, for contingent rent, begins in the period in which it becomes probable that the specified target that triggers the variable lease payments will be achieved. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease expense were as follows: 13 Weeks Ended 26 Weeks Ended June 30, July 2, June 30, July 2, (In thousands) Lease expense: Operating lease expense $ 21,210 $ 21,076 $ 42,248 $ 42,114 Variable lease expense 5,038 4,665 9,720 9,477 Operating lease expense 26,248 25,741 51,968 51,591 Amortization of right-of-use assets 1,159 949 2,301 1,899 Interest on lease liabilities 219 78 448 158 Finance lease expense 1,378 1,027 2,749 2,057 Total lease expense $ 27,626 $ 26,768 $ 54,717 $ 53,648 Other information related to leases was as follows: 26 Weeks Ended June 30, July 2, (In thousands) Operating cash flows from operating leases $ 43,604 $ 43,518 Financing cash flows from finance leases 2,135 2,007 Operating cash flows from finance leases 477 165 Cash paid for amounts included in the measurement of lease liabilities $ 46,216 $ 45,690 Right-of-use assets obtained in exchange for new finance lease liabilities $ 1,363 $ 1,152 Right-of-use assets obtained in exchange for new operating lease liabilities $ 46,529 $ 29,681 Weighted-average remaining lease term—finance leases 4.0 years 3.7 years Weighted-average remaining lease term—operating leases 5.0 years 4.9 years Weighted-average discount rate—finance leases 6.3 % 4.2 % Weighted-average discount rate—operating leases 5.7 % 5.2 % Maturities of finance and operating lease liabilities as of June 30, 2024 were as follows: Fiscal Year Ending: Finance Operating (In thousands) 2024 (remaining six months) $ 2,345 $ 39,669 2025 4,373 77,378 2026 4,057 62,818 2027 2,824 45,003 2028 1,796 33,040 Thereafter 594 57,599 Undiscounted cash flows $ 15,989 $ 315,507 Reconciliation of lease liabilities: Weighted-average remaining lease term 4.0 years 5.0 years Weighted-average discount rate 6.3 % 5.7 % Present values $ 14,084 $ 272,864 Lease liabilities - current 3,712 65,971 Lease liabilities - long-term 10,372 206,893 Lease liabilities - total $ 14,084 $ 272,864 Difference between undiscounted and discounted cash flows $ 1,905 $ 42,643 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (7) Long-Term Debt The Company, Big 5 Corp. and Big 5 Services Corp. are parties to a Loan, Guaranty and Security Agreement with Bank of America, N.A. (“BofA”), as agent and lender , which was amended on November 22, 2021, October 19, 2022 and May 16, 2023 (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. 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 in the following table. 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. As of June 30, 2024 and December 31, 2023 , the Company had no long-term revolving credit borrowings outstanding. As of June 30, 2024 and December 31, 2023 , the Company had outstanding letter of credit commitments of $ 1.7 million and $ 2.0 million, respectively. Total remaining borrowing availability, after subtracting letters of credit, was $ 148.3 million and $ 148.0 million as of June 30, 2024 and December 31, 2023 , respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (8) Income Taxes Under the asset and liability method prescribed under ASC 740, Income Taxes , the Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The realizability of deferred tax assets is assessed throughout the year and a valuation allowance is recorded, if necessary, to reduce net deferred tax assets to the amount more likely than not to be realized. As of June 30, 2024 and December 31, 2023 , there was no valuation allowance for deferred income tax assets. The Company files a consolidated federal income tax return and files tax returns in various state and local jurisdictions. The statutes of limitations for consolidated federal income tax returns are open for fiscal years 2020 and after, and state and local income tax returns are open for fiscal years 2019 and after. As of June 30, 2024 and December 31, 2023 , the Company had no unrecognized tax benefits including those that, if recognized, would affect the Company’s effective income tax rate over the next 12 months . The Company’s policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expense. As of June 30, 2024 and December 31, 2023 , the Company had no accrued interest or penalties. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
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. During periods of net loss, diluted loss per share is equal to basic loss per share because the antidilutive effect of potential common shares is disregarded. The following table sets forth the computation of basic and diluted earnings per common share: 13 Weeks Ended 26 Weeks Ended June 30, July 2, June 30, July 2, (In thousands, except per share data) Net loss $ ( 10,004 ) $ ( 282 ) $ ( 18,290 ) $ ( 89 ) Weighted-average shares of common Basic 21,956 21,762 21,894 21,696 Dilutive effect of common stock — — — — Diluted 21,956 21,762 21,894 21,696 Basic loss per share $ ( 0.46 ) $ ( 0.01 ) $ ( 0.84 ) $ ( 0.00 ) Diluted loss per share $ ( 0.46 ) $ ( 0.01 ) $ ( 0.84 ) $ ( 0.00 ) Antidilutive share option awards 430 20 358 20 Antidilutive nonvested share awards 656 298 494 327 The computation of diluted earnings per share for all periods presented excludes all potential share option awards and nonvested share awards since the Company reported a net loss in all periods presented, and the effect of their inclusion would have been antidilutive (i.e., including such awards would result in higher earnings per share). |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (10) Commitments and Contingencies Recovery of Insurance Proceeds In the fourth quarter of fiscal 2022, one of the Company’s stores qualified for loss recovery claims due to property damage sustained as a result of a roof collapse, and the Company disposed of assets of approximately $ 0.4 million related to lost inventory and property and equipment. In the third quarter of fiscal 2023, the Company reached an agreement with its insurance carrier and, after application of a deductible of $ 0.5 million, the Company received, as part of the insurance recovery, a cash advance of $ 0.7 million in total, of which $ 0.6 million related to the reimbursement of lost inventory and profit margin and $ 0.1 million related to the reimbursement of property and equipment. Accordingly, the Company recognized a gain of $ 0.3 million related to the recovery of lost inventory and profit margin and a gain of $ 25,000 related to the recovery of property and equipment. The gain related to the recovery of lost inventory and profit margin was included in the consolidated statement of operations as a reduction to cost of goods sold and the gain related to the recovery of lost property and equipment was included in the consolidated statement of operations as a reduction to selling and administrative expense for fiscal 2023. While further recovery is expected in fiscal 2024, no recoveries were received in the first half of fiscal 2024. Legal Proceedings On March 13, 2023, a complaint was filed in the Superior Court of the State of California, County of Santa Clara, entitled Zareyah Thompson v. Big 5 Corp., et. al., Case No. 23CV412334 (“Thompson Complaint”). The Thompson Complaint was brought as a purported California Private Attorneys General Act (“PAGA”) action on behalf of “current and former employees who worked for the Company or its operating subsidiary in California as a non-exempt, hourly paid employee and received at least one wage statement.” The Thompson Complaint alleges, among other things, that Big 5 failed to (i) provide minimum wages, (ii) provide compliant meal or rest periods, (iii) maintain and provide accurate itemized wage statements, (iv) properly compensate for all time worked, including overtime, premium, vacation and final wages, (v) properly maintain payroll records, and (vi) provide suitable seating. On March 21, 2023, a second complaint was filed in the Superior Court of the State of California, County of Santa Clara, entitled Christopher Puga v. Big 5 Corp., et. al., Case No. 23CV412953 (“Puga Complaint”). The Puga Complaint was brought as a purported PAGA action on behalf of “all current and former non-exempt employees that worked either directly or via a staffing agency for the Company or its operating subsidiary at any location in California” (“Putative Covered Employees”). The Puga Complaint alleges, among other things, that Big 5 (i) unlawfully required Putative Covered Employees to agree to unlawful criminal background checks, (ii) conducted unlawful financial and criminal background checks, and did not (iii) provide minimum wages, (iv) provide accurate itemized wage statements, (v) maintain accurate records pertaining to the Putative Covered Employees’ employment, (vi) produce or make available Putative Covered Employees’ personnel records and/or payroll records, (vii) provide compliant meal or rest periods, (viii) properly compensate for all time worked, including overtime, premium, vacation, and final wages, (ix) reimburse necessary business expenses; (x) provide suitable seating; (xi) provide sick leave pay to Putative Covered Employees, (xii) accurately calculate sick leave accrual and rate of pay, (xiii) put the Putative Covered Employees on notice of their paid sick leave rights, and (xiv) provide supplemental paid sick leave. The Thompson and Puga complaints have many overlapping causes of action. Accordingly, on or about April 12, 2023, a notice of related cases was filed with the Court regarding the Thompson Complaint and Puga Complaint. The Court subsequently conducted a case management conference on June 29, 2023 for both complaints, and jointly coordinated the complaints. The Company’s counsel held a mediation with opposing counsel on September 27, 2023. The Company has reached a settlement in both cases and established a cumulative indemnity reserve of $ 1.5 million. The settlement has been approved by the Court, and will become final if not contested. The Company is involved in various other claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters is not expected to have a material effect on the Company’s results of operations, financial condition or cash flows. |
Share-based Compensation
Share-based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation | (11) Share-based Compensation In June 2022, the Company amended and restated its 2019 Equity Incentive Plan (the “2019 Plan”), primarily authorizing an additional 3,300,000 shares available for future grant. As of June 30, 2024, 2,404,977 shares remained registered and available for future grant under the 2019 Plan. At its discretion, the Company grants share option awards, nonvested share awards and nonvested share unit awards to certain employees, as defined by ASC 718, Compensation—Stock Compensation , under the Company’s 2019 Plan, and accounts for its share-based compensation in accordance with ASC 718. The Company recognized $ 0.7 million and $ 1.4 million in share-based compensation expense for the 13 and 26 weeks ended June 30, 2024, respectively, and the 13 and 26 weeks ended July 2, 2023, respectively. Share Option Awards Share option awards granted by the Company generally vest and become exercisable in four equal annual installments of 25 % per year with a maximum life of ten years . The exercise price of share option awards is equal to the quoted market price of the Company’s common stock on the date of grant. The Company granted 272,000 share option awards in the first half of fiscal 2024 with a weighted-average grant-date fair value of $ 2.52 per share option award. No share option awards were granted in the first half of fiscal 2023. A summary of the status of the Company’s share option awards is presented below: Shares Weighted- Weighted- Aggregate Outstanding at December 31, 2023 253,385 $ 4.47 Granted 272,000 4.80 Exercised ( 5,725 ) 2.23 Forfeited ( 3,000 ) 4.78 Outstanding at June 30, 2024 516,660 $ 4.67 7.60 $ 98,536 Exercisable at June 30, 2024 236,743 $ 3.91 5.23 $ 98,536 Vested and Expected to Vest at June 30, 2024 511,873 $ 4.67 7.58 $ 98,536 The aggregate intrinsic value represents the total pretax intrinsic value, based upon the Company’s most recent closing stock price of $ 2.96 as of June 30, 2024, 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 the first half of fiscal 2024 were not material. 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: 13 Weeks Ended 26 Weeks Ended June 30, July 2, June 30, July 2, Risk-free interest rate — — 4.2 % — Expected term — — 7.5 years — Expected volatility — — 77.6 % — Expected dividend yield — — 4.1 % — 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 share option award; the expected term represents the weighted-average period of time that share 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 June 30, 2024, there was $ 0.7 million of total unrecognized compensation expense related to share option awards granted. That expense is expected to be recognized over a weighted-average period of 3.6 years. Nonvested Share Awards and Nonvested Share Unit Awards Nonvested share awards granted by the Company vest for employees from the date of grant in four equal annual installments of 25 % per year. Nonvested share awards and nonvested share unit awards granted by the Company to non-employee directors for their service as directors, as defined by ASC 718, generally vest 100 % on the earlier of (a) the date of the Company’s next annual stockholders meeting following the grant date, or (b) the first anniversary of the grant date. Nonvested share awards become outstanding when granted and are delivered to the recipient upon their vesting. Vested share unit awards, including any dividend reinvestments, are delivered to the recipient on the tenth business day of January following the year in which the recipient’s service to the Company is terminated, at which time the units convert to shares and become outstanding. The total fair value of nonvested share awards which vested during the first half of fiscal 2024 and 2023 was $ 1.0 million and $ 2.0 million, respectively. No nonvested share unit awards vested during the first half of fiscal 2024 and 2023. The Company granted 366,660 and 327,112 nonvested share awards in the first half of fiscal 2024 and 2023, respectively. The weighted-average grant-date fair value per share of the Company’s nonvested share awards granted in the first half of fiscal 2024 and 2023 was $ 3.49 and $ 7.91 , respectively. No nonvested share unit awards were granted during the periods presented. A summary of the status of the Company’s nonvested share awards is presented below: Shares Weighted- Balance at December 31, 2023 634,227 $ 10.56 Granted 366,660 3.49 Vested ( 274,862 ) 9.67 Forfeited ( 16,985 ) 9.26 Balance at June 30, 2024 709,040 $ 7.28 To satisfy employee minimum statutory tax withholding requirements for nonvested share awards that vest, the Company withholds and retires a portion of the vesting common shares, unless an employee elects to pay cash. In the first half of fiscal 2024 , the Company withheld 86,897 common shares with a total value of $ 0.3 million. This amount is presented as a cash outflow from financing activities in the accompanying interim unaudited condensed consolidated statement of cash flows. As of June 30, 2024, there was $ 4.4 million of total unrecognized compensation expense related to nonvested share awards, which is expected to be recognized over a weighted-average period of 2.6 years. As of June 30, 2024 , there was no remaining unrecognized compensation expense related to nonvested share unit awards. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | (12) Subsequent Events In an effort to provide additional financial flexibility given the uncertain duration of current macroeconomic challenges, the Company’s Board of Directors suspended the quarterly cash dividend for the third quarter of fiscal 2024. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation The accompanying Interim Financial Statements include the accounts of Big 5 Sporting Goods Corporation, Big 5 Corp. and Big 5 Services Corp. Intercompany balances and transactions have been eliminated in consolidation. |
Reporting Period | Reporting Period The Company follows the concept of a 52 - 53 week fiscal year, which ends on the Sunday nearest December 31. Fiscal year 2024 is comprised of 52 weeks and ends on December 29, 2024. Fiscal year 2023 was comprised of 52 weeks and ended on December 31, 2023. The interim periods in fiscal 2024 and 2023 are each comprised of 13 weeks. |
Recently Issued Accounting Updates | Recently Issued Accounting Updates In October 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-06, Disclosure Improvements—Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative , which incorporates into the Accounting Standards Codification (“ASC”) certain incremental disclosure requirements introduced by the Securities and Exchange Commission (“SEC”) as part of its disclosure update and simplification initiative. The amendments in this update are intended to clarify or improve presentation and disclosure requirements around a variety of ASC Topics, improve entity comparability for users, and align ASC requirements with SEC regulations. For entities subject to the SEC’s existing disclosure requirements, the effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the ASC and not become effective. Early adoption is prohibited. The Company does not expect the issuance of this ASU to have a material impact on its consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280)—Improvements to Reportable Segment Disclosures , which aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments in the ASU enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The ASU applies to all public entities that are required to report segment information in accordance with ASC 280, and is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company has not early adopted the ASU for interim periods. The Company will adopt this ASU for its annual period ending December 29, 2024, and the Company is evaluating the future impact of the issuance of this ASU on its consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740)—Improvements to Income Tax Disclosures , which include improvements to income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. This ASU also includes certain other amendments to better align disclosures with Regulation S-X and to remove disclosures no longer considered cost beneficial or relevant. This ASU is effective for public entities for annual periods beginning after December 15, 2024, with earlier or retrospective application permitted. The amendments in this ASU should be applied prospectively for annual financial statements not yet issued or made available for issuance. The Company is evaluating the future impact of the issuance of this ASU on its consolidated financial statements. Other recently issued accounting updates are not expected to have a material impact on the Company’s Interim Financial Statements. |
General Concentration of Risk | General Concentration of Risk The Company purchases merchandise from over 600 suppliers, and the Company’s 20 largest suppliers accounted for 39.3 % of total purchases in fiscal 2023. One vendor represented greater than 5 % of total purchases in fiscal 2023, at 5.1 %. A substantial amount of the Company’s inventory is manufactured abroad and, from time to time, shipping ports may experience capacity constraints (such as delays associated with the novel coronavirus “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 conflicts in Ukraine and the Middle East, could significantly disrupt operations at shipping ports or otherwise impact transportation of the imported merchandise we sell, either through supply chain disruptions, or rising freight and fuel costs. |
Use of Estimates | Use of Estimates Management makes a number of estimates and assumptions relating to the reporting of assets, liabilities and stockholders’ equity and the disclosure of contingent assets and liabilities at the date of the Interim Financial Statements and reported amounts of revenue and expense during the reporting period to prepare these Interim Financial Statements in conformity with GAAP. Certain items subject to such estimates and assumptions include the carrying amount of merchandise inventories, property and equipment, lease assets and lease liabilities; valuation allowances for receivables, sales returns and deferred income tax assets; estimates related to stored-value cards and the valuation of share-based compensation awards; and obligations related to litigation, self-insurance liabilities and employee benefits. Due to the inherent uncertainty involved in making assumptions and estimates, events and changes in circumstances arising after June 30, 2024 may result in actual outcomes that differ from those contemplated by management’s assumptions and estimates. |
Revenue Recognition | Revenue Recognition The Company operates solely as a sporting goods retailer, which includes both retail stores and an e-commerce platform, that offers a broad range of products in the western United States and online. Generally, all revenue is recognized when control of the promised goods is transferred to customers, for an amount that reflects the consideration in exchange for those goods. Accordingly, the Company implicitly enters into a contract with customers to deliver merchandise inventory at the point of sale. Collectability is probable since the Company only extends immaterial credit purchases to certain municipalities and local school districts. In accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers , the Company disaggregates net sales into the following major merchandise categories to depict the nature and amount of revenue and related cash flows: 13 Weeks Ended 26 Weeks Ended June 30, July 2, June 30, July 2, (In thousands) Hardgoods $ 116,105 $ 131,233 $ 203,897 $ 233,996 Athletic and sport footwear 48,140 53,123 100,757 112,105 Athletic and sport apparel 34,769 38,017 86,225 99,325 Other sales 810 1,194 2,372 3,080 Net sales $ 199,824 $ 223,567 $ 393,251 $ 448,506 Substantially all of the Company’s revenue is for single performance obligations for the following distinct items: • Retail store sales • E-commerce sales • Stored-value cards For performance obligations related to retail store and e-commerce sales contracts, the Company typically transfers control, for retail stores, upon consummation of the sale when the product is paid for and taken by the customer and, for e-commerce sales, when the product is tendered for delivery to the common carrier. For performance obligations related to stored-value cards, the Company typically transfers control upon redemption of the stored-value card through consummation of a future sales transaction. The Company accounts for shipping and handling relative to e-commerce sales as fulfillment activities, and not a separate performance obligation. Accordingly, the Company recognizes revenue for only one performance obligation, the sale of the product, at shipping point (when the customer gains control). Revenue associated with e-commerce sales was not material for the 13 and 26 weeks ended June 30, 2024 and July 2, 2023. The Company recognized $ 1.3 million and $ 2.7 million in stored-value card redemption revenue for the 13 and 26 weeks ended June 30, 2024 , respectively, compared to $ 1.4 million and $ 3.1 million in stored-value card redemption revenue for the 13 and 26 weeks ended July 2, 2023, respectively. The Company also recognized $ 0.1 million and $ 0.2 million in stored-value card breakage revenue for the 13 and 26 weeks ended June 30, 2024 , respectively, compared to $ 0.1 million and $ 0.2 million in stored-value card breakage revenue for the 13 and 26 weeks ended July 2, 2023, respectively. The Company had outstanding stored-value card liabilities of $ 8.8 million and $ 9.2 million as of June 30, 2024 and December 31, 2023 , respectively, which are included in accrued expenses in the accompanying interim unaudited condensed consolidated balance sheets. Based upon historical experience, stored-value cards are predominantly redeemed in the first two years following their issuance date. In the accompanying interim unaudited condensed consolidated balance sheets, the Company recorded, as prepaid expense, estimated right-of-return merchandise cost of $ 0.7 million and $ 0.9 million related to estimated sales returns as of June 30, 2024 and December 31, 2023, respectively, and recorded, in accrued expenses, an allowance for sales returns reserve of $ 1.4 million and $ 1.7 million as of June 30, 2024 and December 31, 2023 , respectively. |
Share-Based Compensation | Share-Based Compensation The Company accounts for its share-based compensation in accordance with ASC 718, Compensation—Stock Compensation . The Company recognizes compensation expense on a straight-line basis over the requisite service period using the fair-value method for share option awards, nonvested share awards and nonvested share unit awards granted with service-only conditions. See Note 11 to the Interim Financial Statements for a further discussion on share-based compensation. |
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. |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets In accordance with ASC 360, Property, Plant, and Equipment , the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Long-lived assets are reviewed for recoverability at the lowest level in which there are identifiable cash flows (“asset group”), usually at the store level. The carrying amount of a store asset group includes stores’ property and equipment, primarily leasehold improvements, and operating lease right-of-use (“ROU”) assets. The carrying amount of a store asset group is not considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the store asset group. Factors that could trigger an impairment review include a current-period operating or cash flow loss combined with a history of operating and cash flow losses, and a projection that demonstrates continuing losses or insufficient income over the remaining reasonably certain lease term associated with the use of a store asset group. Other factors may include an adverse change in the business climate or an adverse action or assessment by a regulator in the market of a store asset group. When stores are identified as having an indicator of impairment, the Company forecasts undiscounted cash flows over the store asset group’s remaining reasonably certain lease term and compares the undiscounted cash flows to the carrying amount of the store asset group. If the store asset group is determined not to be recoverable, then an impairment charge will be recognized in the amount by which the carrying amount of the store asset group exceeds its fair value, determined using discounted cash flow valuation techniques, as contemplated in ASC 820, Fair Value Measurements . The Company determines the cash flows expected to result from the store asset group by projecting future revenue, gross margin and operating expense for each store asset group under evaluation for impairment. The estimates of future cash flows involve management judgment and are based upon assumptions about expected future operating performance. Assumptions used in these forecasts are consistent with internal planning, and include assumptions about sales growth rates, gross margins and operating expense in relation to the current economic environment and the Company’s future expectations, competitive factors in its various markets, inflation, sales trends and other relevant environmental factors that may impact the store under evaluation. The actual cash flows could differ from management’s estimates due to changes in business conditions, operating performance and economic conditions. If economic conditions deteriorate in the markets in which the Company conducts business, or if other negative market conditions develop, the Company may experience additional impairment charges in the future for underperforming stores. The resulting impairment charge, if any, is allocated to the property and equipment, primarily leasehold improvements, and operating lease ROU assets on a pro-rata basis using the relative carrying amounts of those assets. The allocated impairment charge to a long-lived asset is limited to the extent that the impairment charge does not reduce the carrying amount of the individual long-lived asset below its individual fair value. The estimation of the fair value of an ROU asset involves the evaluation of current market value rental amounts for leases associated with ROU assets. The estimates of current market value rental amounts are primarily based on recent observable market rental data of other comparable retail store locations. The fair value of an ROU asset is measured using a discounted cash flow valuation technique by discounting the estimated current and future market rental values using a property-specific discount rate. The Company did no t recognize any impairment charges in the first half of fiscal 2024 or 2023 . |
Leases | Leases In accordance with ASC 842, Leases , the Company determines if an arrangement is a lease at inception. The Company has operating and finance leases for the Company’s retail store facilities, distribution center, corporate offices, information technology (“IT”) systems hardware, and distribution center delivery tractors and equipment. Operating leases are included in operating lease ROU assets and operating lease liabilities, current and noncurrent, on the interim unaudited condensed consolidated balance sheets. Finance leases are included in property and equipment and finance lease liabilities, current and noncurrent, on the interim unaudited condensed consolidated balance sheets. Lease liabilities are calculated using the effective interest method, regardless of classification, while the amortization of ROU assets varies depending upon classification. Finance lease classification results in a front-loaded expense recognition pattern over the lease term which amortizes the ROU asset by recognizing interest expense and amortization expense as separate components of lease expense and calculates the amortization expense component on a straight-line basis. Conversely, operating lease classification results in a straight-line expense recognition pattern over the lease term and recognizes lease expense as a single expense component, which results in amortization of the ROU asset that equals the difference between lease expense and interest expense. Lease expense for finance and operating leases are included in cost of sales or selling and administrative expense, based on the use of the leased asset, on the interim unaudited condensed consolidated statements of operations. Variable payments such as property taxes, insurance and common area maintenance related to triple net leases, as well as certain equipment sales taxes, licenses, fees and repairs, are expensed as incurred, and leases with an initial term of 12 months or less are excluded from minimum lease payments and are not recorded on the interim unaudited condensed consolidated balance sheets. The Company recognizes variable lease expense for these short-term leases on a straight-line basis over the remaining lease term. ROU assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the reasonably certain lease term. As the Company’s leases generally do not provide an implicit rate, the Company uses a collateralized incremental borrowing rate (“IBR”) to determine the present value of lease payments. The collateralized IBR is based on a synthetic credit rating that is externally prepared on an annual basis. This analysis considers qualitative and quantitative factors based on guidance provided by a rating agency for the consumer durables industry. The Company adjusts the selected IBR quarterly with a company-specific unsecured yield curve that approximates the Company’s market risk profile. The collateralized IBR is also based upon the estimated impact that the collateral has on the IBR. To account for the collateralized nature of the IBR, the Company utilized a notching method based on notching guidance provided by a rating agency whereby the Company’s base credit rating is notched upward as the yield curve on a secured loan is expected to be lower versus an unsecured loan. The operating lease ROU asset also includes any prepaid lease payments made and is reduced by lease incentives such as tenant improvement allowances. The operating lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. Certain of the leases for the Company’s retail store facilities provide for payments based on future sales volumes at the leased location, which are not measurable at the inception of the lease. Under ASC 842, these contingent rents are expensed as they accrue. See Note 6 to the Interim Financial Statements for a further discussion on leases. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Disaggregates Net Sales into Major Merchandise Categories to Depict Nature and Amount of Revenue and Related Cash Flows | In accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers , the Company disaggregates net sales into the following major merchandise categories to depict the nature and amount of revenue and related cash flows: 13 Weeks Ended 26 Weeks Ended June 30, July 2, June 30, July 2, (In thousands) Hardgoods $ 116,105 $ 131,233 $ 203,897 $ 233,996 Athletic and sport footwear 48,140 53,123 100,757 112,105 Athletic and sport apparel 34,769 38,017 86,225 99,325 Other sales 810 1,194 2,372 3,080 Net sales $ 199,824 $ 223,567 $ 393,251 $ 448,506 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses | The major components of accrued expenses are as follows: June 30, December 31, (In thousands) Payroll and related expense $ 21,119 $ 22,331 Occupancy expense 8,199 8,655 Sales tax 5,139 7,581 Other 24,860 22,716 Accrued expenses $ 59,317 $ 61,283 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense were as follows: 13 Weeks Ended 26 Weeks Ended June 30, July 2, June 30, July 2, (In thousands) Lease expense: Operating lease expense $ 21,210 $ 21,076 $ 42,248 $ 42,114 Variable lease expense 5,038 4,665 9,720 9,477 Operating lease expense 26,248 25,741 51,968 51,591 Amortization of right-of-use assets 1,159 949 2,301 1,899 Interest on lease liabilities 219 78 448 158 Finance lease expense 1,378 1,027 2,749 2,057 Total lease expense $ 27,626 $ 26,768 $ 54,717 $ 53,648 |
Schedule of Other Information Related To Leases | Other information related to leases was as follows: 26 Weeks Ended June 30, July 2, (In thousands) Operating cash flows from operating leases $ 43,604 $ 43,518 Financing cash flows from finance leases 2,135 2,007 Operating cash flows from finance leases 477 165 Cash paid for amounts included in the measurement of lease liabilities $ 46,216 $ 45,690 Right-of-use assets obtained in exchange for new finance lease liabilities $ 1,363 $ 1,152 Right-of-use assets obtained in exchange for new operating lease liabilities $ 46,529 $ 29,681 Weighted-average remaining lease term—finance leases 4.0 years 3.7 years Weighted-average remaining lease term—operating leases 5.0 years 4.9 years Weighted-average discount rate—finance leases 6.3 % 4.2 % Weighted-average discount rate—operating leases 5.7 % 5.2 % |
Schedule of Maturities For Finance And Operating Leases | Maturities of finance and operating lease liabilities as of June 30, 2024 were as follows: Fiscal Year Ending: Finance Operating (In thousands) 2024 (remaining six months) $ 2,345 $ 39,669 2025 4,373 77,378 2026 4,057 62,818 2027 2,824 45,003 2028 1,796 33,040 Thereafter 594 57,599 Undiscounted cash flows $ 15,989 $ 315,507 Reconciliation of lease liabilities: Weighted-average remaining lease term 4.0 years 5.0 years Weighted-average discount rate 6.3 % 5.7 % Present values $ 14,084 $ 272,864 Lease liabilities - current 3,712 65,971 Lease liabilities - long-term 10,372 206,893 Lease liabilities - total $ 14,084 $ 272,864 Difference between undiscounted and discounted cash flows $ 1,905 $ 42,643 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share: 13 Weeks Ended 26 Weeks Ended June 30, July 2, June 30, July 2, (In thousands, except per share data) Net loss $ ( 10,004 ) $ ( 282 ) $ ( 18,290 ) $ ( 89 ) Weighted-average shares of common Basic 21,956 21,762 21,894 21,696 Dilutive effect of common stock — — — — Diluted 21,956 21,762 21,894 21,696 Basic loss per share $ ( 0.46 ) $ ( 0.01 ) $ ( 0.84 ) $ ( 0.00 ) Diluted loss per share $ ( 0.46 ) $ ( 0.01 ) $ ( 0.84 ) $ ( 0.00 ) Antidilutive share option awards 430 20 358 20 Antidilutive nonvested share awards 656 298 494 327 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Share Option Awards | A summary of the status of the Company’s share option awards is presented below: Shares Weighted- Weighted- Aggregate Outstanding at December 31, 2023 253,385 $ 4.47 Granted 272,000 4.80 Exercised ( 5,725 ) 2.23 Forfeited ( 3,000 ) 4.78 Outstanding at June 30, 2024 516,660 $ 4.67 7.60 $ 98,536 Exercisable at June 30, 2024 236,743 $ 3.91 5.23 $ 98,536 Vested and Expected to Vest at June 30, 2024 511,873 $ 4.67 7.58 $ 98,536 |
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: 13 Weeks Ended 26 Weeks Ended June 30, July 2, June 30, July 2, Risk-free interest rate — — 4.2 % — Expected term — — 7.5 years — Expected volatility — — 77.6 % — Expected dividend yield — — 4.1 % — |
Summary of Nonvested Share Awards Activity | A summary of the status of the Company’s nonvested share awards is presented below: Shares Weighted- Balance at December 31, 2023 634,227 $ 10.56 Granted 366,660 3.49 Vested ( 274,862 ) 9.67 Forfeited ( 16,985 ) 9.26 Balance at June 30, 2024 709,040 $ 7.28 |
Description of Business - Addit
Description of Business - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2024 ft² Store Segment | |
Description Of Business [Line Items] | |
Number of operating stores | Store | 425 |
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) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) Supplier | Jul. 02, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jul. 02, 2023 USD ($) | Dec. 31, 2023 USD ($) Supplier | |
Accounting Policies [Line Items] | ||||||
Reporting period, minimum | 364 days | |||||
Reporting period, maximum | 371 days | |||||
Interim reporting periods | 91 days | 91 days | ||||
Concentration risk, suppliers | Supplier | 600 | |||||
Concentration risk, largest supplier | Supplier | 20 | |||||
Suppliers accounted for total purchases | 39.30% | 39.30% | ||||
Percentage of vendors represented greater than of total purchases | 5% | |||||
Vendor represented greater than of total purchases | Supplier | 1 | 1 | ||||
Number of performance obligation | one | one | ||||
Stored value card redemption revenue recognized | $ 1,300,000 | $ 1,400,000 | $ 2,700,000 | $ 3,100,000 | ||
Outstanding stored value card liabilities | 8,800,000 | $ 9,200,000 | $ 8,800,000 | $ 9,200,000 | ||
Stored value cards redeemed period | 2 years | |||||
Impairment charges | 600,000 | $ 0 | 0 | 600,000 | ||
Merchandise [Member] | Accounting Standards Update 2014-09 | ||||||
Accounting Policies [Line Items] | ||||||
Estimated right of return related to estimated sales returns | 700,000 | 900,000 | ||||
Allowance for sales returns reserve | 1,400,000 | $ 1,700,000 | 1,400,000 | $ 1,700,000 | ||
Stored Value Card Breakage Revenue [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Recognized stored value card breakage revenue | $ 100,000 | $ 100,000 | $ 200,000 | $ 200,000 | ||
One vendor [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Suppliers accounted for total purchases | 5.10% | 5.10% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Disaggregates Net Sales into Major Merchandise Categories to Depict Nature and Amount of Revenue and Related Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Accounting Policies [Line Items] | ||||
Net sales | $ 199,824 | $ 223,567 | $ 393,251 | $ 448,506 |
Hardgoods [Member] | ||||
Accounting Policies [Line Items] | ||||
Net sales | 116,105 | 131,233 | 203,897 | 233,996 |
Athletic and sport footwear [Member] | ||||
Accounting Policies [Line Items] | ||||
Net sales | 48,140 | 53,123 | 100,757 | 112,105 |
Athletic and sport apparel [Member] | ||||
Accounting Policies [Line Items] | ||||
Net sales | 34,769 | 38,017 | 86,225 | 99,325 |
Other sales [Member] | ||||
Accounting Policies [Line Items] | ||||
Net sales | $ 810 | $ 1,194 | $ 2,372 | $ 3,080 |
Impairment of Assets - Addition
Impairment of Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | Dec. 31, 2023 | |
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items] | ||||
Impairment of assets | $ 600,000 | $ 0 | $ 0 | $ 600,000 |
Property, Equipment and Leasehold Improvements [Member] | ||||
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items] | ||||
Impairment of assets | 500,000 | |||
ROU Assets [Member] | ||||
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items] | ||||
Impairment of assets | $ 100,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment charges | $ 600,000 | $ 0 | $ 0 | $ 600,000 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Payroll and related expense | $ 21,119 | $ 22,331 |
Occupancy expense | 8,199 | 8,655 |
Sales tax | 5,139 | 7,581 |
Other | 24,860 | 22,716 |
Accrued expenses | $ 59,317 | $ 61,283 |
Lease Commitments - Summary of
Lease Commitments - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Lease expense: | ||||
Operating lease expense | $ 21,210 | $ 21,076 | $ 42,248 | $ 42,114 |
Variable lease expense | 5,038 | 4,665 | 9,720 | 9,477 |
Operating lease expense | 26,248 | 25,741 | 51,968 | 51,591 |
Amortization of right-of-use assets | 1,159 | 949 | 2,301 | 1,899 |
Interest on lease liabilities | 219 | 78 | 448 | 158 |
Finance lease expense | 1,378 | 1,027 | 2,749 | 2,057 |
Total lease expense | $ 27,626 | $ 26,768 | $ 54,717 | $ 53,648 |
Lease Commitments - Schedule of
Lease Commitments - Schedule of Other Information Related to Leases (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jul. 02, 2023 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 43,604 | $ 43,518 |
Financing cash flows from finance leases | 2,135 | 2,007 |
Operating cash flows from finance leases | 477 | 165 |
Cash paid for amounts included in the measurement of lease liabilities | 46,216 | 45,690 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 1,363 | 1,152 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 46,529 | $ 29,681 |
Weighted-average remaining lease term—finance leases | 4 years | 3 years 8 months 12 days |
Weighted-average remaining lease term—operating leases | 5 years | 4 years 10 months 24 days |
Weighted-average discount rate—finance leases | 6.30% | 4.20% |
Weighted-average discount rate—operating leases | 5.70% | 5.20% |
Lease Commitments - Schedule _2
Lease Commitments - Schedule of Finance and Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jul. 02, 2023 |
Finance Lease Liabilities, Payments, Due [Abstract] | |||
2024 (remaining six months) | $ 2,345 | ||
Finance leases, 2025 | 4,373 | ||
Finance leases, 2026 | 4,057 | ||
Finance leases, 2027 | 2,824 | ||
Finance leases, 2028 | 1,796 | ||
Finance leases, thereafter | 594 | ||
Finance leases, total lease payments | $ 15,989 | ||
Weighted-average remaining lease term | 4 years | 3 years 8 months 12 days | |
Weighted-average discount rate | 6.30% | 4.20% | |
Present values | $ 14,084 | ||
Lease liabilities - current | 3,712 | $ 3,843 | |
Lease liabilities - long-term | 10,372 | 11,856 | |
Lease liabilities - total | 14,084 | ||
Difference between undiscounted and discounted cash flows | 1,905 | ||
Operating Lease Liabilities, Payments Due [Abstract] | |||
2024 (remaining six months) | 39,669 | ||
Operating leases, 2025 | 77,378 | ||
Operating leases, 2026 | 62,818 | ||
Operating leases, 2027 | 45,003 | ||
Operating leases, 2028 | 33,040 | ||
Operating leases, thereafter | 57,599 | ||
Operating leases, total lease payments | $ 315,507 | ||
Weighted-average remaining lease term | 5 years | 4 years 10 months 24 days | |
Weighted-average discount rate | 5.70% | 5.20% | |
Present values | $ 272,864 | ||
Lease liabilities - current | 65,971 | 70,372 | |
Lease liabilities - long-term | 206,893 | $ 191,178 | |
Lease liabilities - total | 272,864 | ||
Difference between undiscounted and discounted cash flows | $ 42,643 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Feb. 24, 2021 | Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||
Credit Agreement description | The Company, Big 5 Corp. and Big 5 Services Corp. are parties to a Loan, Guaranty and Security Agreement with Bank of America, N.A. (“BofA”), as agent and lender, which was amended on November 22, 2021, October 19, 2022 and May 16, 2023 (as so amended, the “Loan Agreement”). | ||
Long-term revolving credit borrowings outstanding | $ 0 | $ 0 | |
Letter of credit commitments | $ 1,700,000 | 2,000,000 | |
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% | ||
Wells Fargo Bank National Association [Member] | |||
Debt Instrument [Line Items] | |||
Remaining borrowing availability | $ 148,300,000 | $ 148,000,000 |
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 $70,000,000 |
SOFR Rate Applicable Margin | 1.50% |
Base Rate Applicable Margin | 0.50% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Income Tax Contingency [Line Items] | ||
Deferred tax assets valuation allowance | $ 0 | $ 0 |
Unrecognized tax benefits | $ 0 | 0 |
Unrecognized tax benefits, period | over the next 12 months | |
Accrued interest or penalties | $ 0 | $ 0 |
Federal [Member] | ||
Income Tax Contingency [Line Items] | ||
Income tax returns in period | 2020 2021 2022 2023 2024 | |
State and Local [Member] | ||
Income Tax Contingency [Line Items] | ||
Income tax returns in period | 2019 2020 2021 2022 2023 2024 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Earnings Per Share Basic [Line Items] | ||||
Net loss | $ (10,004) | $ (282) | $ (18,290) | $ (89) |
Weighted-average shares of common stock outstanding: | ||||
Basic | 21,956 | 21,762 | 21,894 | 21,696 |
Dilutive effect of common stock equivalents arising from share option and nonvested share awards | 0 | 0 | 0 | 0 |
Diluted | 21,956 | 21,762 | 21,894 | 21,696 |
Basic loss per share | $ (0.46) | $ (0.01) | $ (0.84) | $ 0 |
Diluted loss per share | $ (0.46) | $ (0.01) | $ (0.84) | $ 0 |
Employee Stock Option | ||||
Weighted-average shares of common stock outstanding: | ||||
Antidilutive shares/unit awards excluded from diluted calculation | 430 | 20 | 358 | 20 |
Non Vested Share Awards [Member] | ||||
Weighted-average shares of common stock outstanding: | ||||
Antidilutive shares/unit awards excluded from diluted calculation | 656 | 298 | 494 | 327 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Oct. 01, 2023 USD ($) | Jan. 01, 2023 USD ($) Store | Jun. 30, 2024 USD ($) | Sep. 27, 2023 USD ($) | |
Commitments And Contingencies [Line Items] | ||||
Number of stores destroyed in roof collapse | Store | 1 | |||
Loss contingency, total loss | $ 400,000 | |||
Deduction on settlement | $ 500,000 | |||
Proceeds from cash insurance recovery total, net of insurance deductible | 700,000 | |||
Proceeds from insurance recovery | 600,000 | |||
Proceeds from insurance recovery - property and equipment | 100,000 | |||
Gain on recovery of insurance proceeds - lost profit margin and business interruption | 300,000 | |||
Gain on recovery of insurance proceeds - property and equipment | $ 25,000 | |||
Insurance recoveries received | $ 0 | |||
Cumulative indemnity reserve on tentative settlement | $ 1,500,000 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Compensation expense | $ 700,000 | $ 700,000 | $ 1,400,000 | $ 1,400,000 | |
Granted, shares | 272,000 | ||||
Shares withheld for tax requirements | 86,897 | ||||
Tax withholding payments for share-based compensation | $ 3,000 | $ 7,000 | $ 311,000 | 627,000 | |
Common Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Closing stock price per share | $ 2.96 | $ 2.96 | |||
Tax withholding payments for share-based compensation | $ 1,000 | $ 1,000 | |||
Employee Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Maximum expiration period of share based payment awards granted | 10 years | ||||
Granted, shares | 272,000 | 0 | |||
Weighted-average grant-date fair value per share | $ 2.52 | ||||
Unrecognized compensation expense | $ 700,000 | $ 700,000 | |||
Weighted-average period of recognition | 3 years 7 months 6 days | ||||
Employee Stock Option | Share-based Compensation Award, Tranche One [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting rights (as percentage) | 25% | ||||
Performance Shares [Member] | Share-based Compensation Award, Tranche One [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting rights (as percentage) | 25% | ||||
Performance Shares [Member] | Share-based Compensation Award, Tranche One [Member] | Non-Employee Directors [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting rights (as percentage) | 100% | ||||
Nonvested Share Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Weighted-average period of recognition | 2 years 7 months 6 days | ||||
Fair value of nonvested share awards | $ 1,000,000 | $ 2,000,000 | |||
Issuance of nonvested share awards, Shares | 366,660 | 327,112 | |||
Weighted-average grant-date fair value per share, granted | $ 3.49 | $ 7.91 | |||
Unrecognized compensation expenses | 4,400,000 | $ 4,400,000 | |||
Nonvested Share Unit Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Fair value of nonvested share awards | $ 0 | $ 0 | |||
Issuance of nonvested share awards, Shares | 0 | 0 | |||
Unrecognized compensation expenses | $ 0 | $ 0 | |||
2019 Equity Incentive Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of additional shares available for future grant | 3,300,000 | ||||
Shares available for future grant | 2,404,977 | 2,404,977 |
Share-based Compensation - Summ
Share-based Compensation - Summary of Share Option Awards (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Shares, Outstanding at December 31, 2023 | 253,385 |
Shares, Granted | 272,000 |
Shares, Exercised | (5,725) |
Shares, Forfeited | (3,000) |
Shares, Outstanding at June 30, 2024 | 516,660 |
Shares, Exercisable at June 30, 2024 | 236,743 |
Shares, Vested and Expected to Vest at June 30, 2024 | 511,873 |
Weighted-Average Exercise Price, Outstanding at December 31, 2023 | $ 4.47 |
Weighted-Average Exercise Price, Granted | 4.8 |
Weighted-Average Exercise Price, Exercised | 2.23 |
Weighted-Average Exercise Price, Forfeited | 4.78 |
Weighted-Average Exercise Price, Outstanding at June 30, 2024 | 4.67 |
Weighted-Average Exercise Price, Exercisable at June 30, 2024 | 3.91 |
Weighted-Average Exercise Price, Vested and Expected to Vest at June 30, 2024 | $ 4.67 |
Weighted-Average Remaining Contractual Life (In Years), Outstanding at June 30, 2024 | 7 years 7 months 6 days |
Weighted-Average Remaining Contractual Life (In Years), Exercisable at June 30, 2024 | 5 years 2 months 23 days |
Weighted-Average Remaining Contractual Life (In Years), Vested and Expected to Vest at June 30, 2024 | 7 years 6 months 29 days |
Aggregate Intrinsic Value, Outstanding at June 30, 2024 | $ 98,536 |
Aggregate Intrinsic Value, Exercisable at June 30, 2024 | 98,536 |
Aggregate Intrinsic Value, Vested and Expected to Vest at June 30, 2024 | $ 98,536 |
Share-based Compensation - Fair
Share-based Compensation - Fair Value of Share Option Award Based on Weighted-Average Assumptions (Detail) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Risk-free interest rate | 4.20% |
Expected term | 7 years 6 months |
Expected volatility | 77.60% |
Expected dividend yield | 4.10% |
Share-based Compensation - Su_2
Share-based Compensation - Summary of Nonvested Share Awards Activity (Detail) - $ / shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 02, 2023 | |
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, beginning balance | 634,227 | |
Granted, shares | 366,660 | 327,112 |
Vested, shares | (274,862) | |
Forfeited, shares | (16,985) | |
Nonvested shares, ending balance | 709,040 | |
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 | $ 10.56 | |
Weighted-Average Grant-Date Fair Value, Granted | 3.49 | $ 7.91 |
Weighted-Average Grant-Date Fair Value, Vested | 9.67 | |
Weighted-Average Grant-Date Fair Value, Forfeited | 9.26 | |
Weighted-Average Grant-Date Fair Value, Ending Balance | $ 7.28 | |
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 | 0 | 0 |