Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 28, 2017 | Nov. 30, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 28, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | FIVE | |
Entity Registrant Name | Five Below, Inc. | |
Entity Central Index Key | 1,177,609 | |
Current Fiscal Year End Date | --02-03 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 55,235,141 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 28, 2017 | Jan. 28, 2017 | Oct. 29, 2016 |
Current assets: | |||
Cash and cash equivalents | $ 54,917 | $ 76,088 | $ 53,537 |
Short-term investment securities | 56,678 | 77,791 | 9,912 |
Inventories | 271,685 | 154,448 | 228,175 |
Prepaid income taxes | 4,891 | 1,552 | 5,789 |
Prepaid expenses and other current assets | 41,894 | 29,910 | 33,200 |
Total current assets | 430,065 | 339,789 | 330,613 |
Property and equipment, net of accumulated depreciation and amortization of $114,534, $100,200 and $87,080, respectively. | 177,903 | 138,376 | 135,939 |
Deferred income taxes | 10,512 | 11,039 | 9,045 |
Long-term Investments | 23,177 | 10,514 | 0 |
Other assets | 1,659 | 818 | 1,312 |
Total assets | 643,316 | 500,536 | 476,909 |
Current liabilities: | |||
Line of credit | 0 | 0 | 0 |
Accounts payable | 124,187 | 51,178 | 104,684 |
Income taxes payable | 55 | 23,939 | 126 |
Accrued salaries and wages | 14,770 | 10,794 | 8,677 |
Other accrued expenses | 55,154 | 30,652 | 32,051 |
Total current liabilities | 194,166 | 116,563 | 145,538 |
Deferred rent and other | 67,839 | 52,568 | 53,220 |
Total liabilities | 262,005 | 169,131 | 198,758 |
Commitments and contingencies (note 4) | |||
Shareholders’ equity: | |||
Common stock, $0.01 par value. Authorized 120,000,000 shares; issued and outstanding 55,235,031, 54,904,954 and 54,879,306 shares, respectively. | 552 | 549 | 549 |
Additional paid-in capital | 336,432 | 321,603 | 318,137 |
Retained earnings (accumulated deficit) | 44,327 | 9,253 | (40,535) |
Total shareholders’ equity | 381,311 | 331,405 | 278,151 |
Total liabilities and shareholders' equity (deficit) | $ 643,316 | $ 500,536 | $ 476,909 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Oct. 28, 2017 | Jan. 28, 2017 | Oct. 29, 2016 |
Statement of Financial Position [Abstract] | |||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 123,248 | $ 100,200 | $ 93,312 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 120,000,000 | 120,000,000 | 120,000,000 |
Common stock, shares issued | 55,235,031 | 54,904,954 | 54,879,306 |
Common stock, shares outstanding | 55,235,031 | 54,904,954 | 54,879,306 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 257,175 | $ 199,475 | $ 773,376 | $ 612,320 |
Cost of goods sold | 173,544 | 135,472 | 517,453 | 414,700 |
Gross profit | 83,631 | 64,003 | 255,923 | 197,620 |
Selling, general and administrative expenses | 68,818 | 55,372 | 202,027 | 162,523 |
Operating income | 14,813 | 8,631 | 53,896 | 35,097 |
Interest income, net | 334 | 64 | 902 | 211 |
Income before income taxes | 15,147 | 8,695 | 54,798 | 35,308 |
Income tax expense | 5,268 | 3,248 | 19,724 | 13,256 |
Net income | $ 9,879 | $ 5,447 | $ 35,074 | $ 22,052 |
Basic (loss) income per common share (dollars per share) | $ 0.18 | $ 0.10 | $ 0.64 | $ 0.40 |
Diluted (loss) income per common share (dollars per share) | $ 0.18 | $ 0.10 | $ 0.63 | $ 0.40 |
Weighted average shares outstanding: | ||||
Basic shares | 55,215,850 | 54,871,172 | 55,148,316 | 54,809,768 |
Diluted shares | 55,608,035 | 55,170,686 | 55,493,452 | 55,100,534 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - 9 months ended Oct. 28, 2017 - USD ($) $ in Thousands | Total | Common stock [Member] | Additional Paid-in Capital [Member] | Accumulated deficit [Member] |
Balance at Jan. 28, 2017 | $ 331,405 | $ 549 | $ 321,603 | $ 9,253 |
Balance, common stock, shares at Jan. 28, 2017 | 54,904,954 | 54,904,954 | ||
Share-based compensation expense | $ 11,785 | 11,785 | 0 | |
Issuance of unrestricted stock awards | 176 | $ 0 | 176 | 0 |
Issuance of unrestricted stock awards (in shares) | 3,472 | |||
Exercise of options to purchase common stock | $ 3,797 | $ 1 | 3,796 | 0 |
Exercise of options to purchase common stock (in shares) | 138,312 | 138,312 | ||
Common shares withheld for taxes | $ (1,063) | $ (1,063) | ||
Common shares withheld for taxes (in shares) | (26,117) | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 135,000 | 2,600 | 135,000 | |
Net income | $ 35,074 | |||
Balance at Oct. 28, 2017 | $ 381,311 | $ 552 | $ 336,432 | $ 44,327 |
Balance, common stock, shares at Oct. 28, 2017 | 55,235,031 | 55,235,031 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 28, 2017 | Oct. 29, 2016 | |
Statement of Cash Flows [Abstract] | ||
Proceeds from Issuance Initial Public Offering | $ 135 | $ 93 |
Operating activities: | ||
Net income | 35,074 | 22,052 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 24,193 | 19,449 |
Share-based compensation expense | 11,977 | 9,014 |
Deferred income tax expense (benefit) | 527 | (538) |
Other non-cash expenses | 67 | 53 |
Changes in operating assets and liabilities: | ||
Prepaid income taxes | (3,339) | (4,448) |
Inventories | (117,237) | (79,805) |
Prepaid expenses and other assets | (12,865) | (18,656) |
Accounts payable | 69,933 | 47,240 |
Income taxes payable | (23,884) | (11,816) |
Accrued salaries and wages | 3,976 | 1,016 |
Deferred rent | 12,799 | 7,623 |
Other accrued expenses | 15,806 | 5,946 |
Net cash provided by operating activities | 17,027 | (2,870) |
Investing activities: | ||
Purchases of investment securities | (124,406) | (35,856) |
Sales, maturities, and redemptions of investment securities | 132,855 | 72,279 |
Capital expenditures | (49,518) | (35,714) |
Net cash used in investing activities | (41,069) | 709 |
Financing activities: | ||
Proceeds from exercise of options to purchase common stock | 3,797 | 2,736 |
Common shares withheld for taxes | (1,063) | (1,819) |
Excess tax benefit related to exercises of stock options, vesting of restricted stock units, and vesting of performance-based restricted units | 0 | 1,607 |
Proceeds from (Payments for) Other Financing Activities | 2 | 0 |
Net cash provided by financing activities | 2,871 | 2,617 |
Net (decrease) increase in cash and cash equivalents | (21,171) | 456 |
Cash and cash equivalents at beginning of period | 76,088 | 53,081 |
Cash and cash equivalents at end of period | 54,917 | 53,537 |
Supplemental disclosures of cash flow information: | ||
Increase in accrued purchases of property and equipment | $ (11,266) | $ (80) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 28, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | (1) Summary of Significant Accounting Policies (a) Nature of Business Five Below, Inc. (collectively with its wholly owned subsidiary as the "Company") is a specialty value retailer offering merchandise targeted at the teen and pre-teen demographic. The Company offers an edited assortment of products, priced at $5 and below. In August 2016, the Company commenced selling merchandise on the internet, through the Company's fivebelow.com e-commerce website. The Company’s edited assortment of products includes select brands and licensed merchandise. The Company believes its merchandise is readily available, and that there are a number of potential vendors that could be utilized, if necessary, under approximately the same terms the Company is currently receiving; thus, it is not dependent on a single vendor or a group of vendors. The Company is incorporated in the Commonwealth of Pennsylvania and, as of October 28, 2017 , operated in 32 states that include Pennsylvania, New Jersey, Delaware, Maryland, Virginia, Massachusetts, New Hampshire, West Virginia, North Carolina, New York, Connecticut, Rhode Island, Ohio, Illinois, Indiana, Michigan, Missouri, Georgia, Texas, Tennessee, Maine, Alabama, Kentucky, Kansas, Florida, South Carolina, Mississippi, Louisiana, Wisconsin, Oklahoma, Minnesota and California. As of October 28, 2017 and October 29, 2016 , the Company operated 625 stores and 517 stores, respectively, each operating under the name “Five Below.” (b) Fiscal Year The Company operates on a 52/53-week fiscal year ending on the Saturday closest to January 31. References to "fiscal year 2017" or "fiscal 2017" refer to the period from January 29, 2017 to February 3, 2018 and consists of a 53-week fiscal year. References to "fiscal year 2016" or "fiscal 2016" refer to the period from January 31, 2016 to January 28, 2017 and consists of a 52-week fiscal year. The fiscal quarters ended October 28, 2017 and October 29, 2016 refer to the thirteen weeks ended as of those dates. The year-to-date periods ended October 28, 2017 and October 29, 2016 refer to the thirty-nine weeks ended as of those dates. (c) Basis of Presentation The consolidated balance sheets as of October 28, 2017 and October 29, 2016 , the consolidated statements of operations for the thirteen and thirty-nine weeks ended October 28, 2017 and October 29, 2016 , the consolidated statement of shareholders’ equity for the thirty-nine weeks ended October 28, 2017 and the consolidated statements of cash flows for the thirty-nine weeks ended October 28, 2017 and October 29, 2016 have been prepared by the Company in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim reporting and are unaudited. In the opinion of management, the aforementioned financial statements include all known adjustments (which consist primarily of normal, recurring accruals, estimates and assumptions that impact the financial statements) necessary to present fairly the financial position at the balance sheet dates and the results of operations and cash flows for the periods ended October 28, 2017 and October 29, 2016 . The balance sheet as of January 28, 2017 , presented herein, has been derived from the audited balance sheet included in the Company's Annual Report on Form 10-K for fiscal 2016 as filed with the Securities and Exchange Commission on March 23, 2017 and referred to herein as the “Annual Report,” but does not include all annual disclosures required by U.S. GAAP. These consolidated financial statements should be read in conjunction with the financial statements for the fiscal year ended January 28, 2017 and footnotes thereto included in the Annual Report. The consolidated results of operations for the thirteen and thirty-nine weeks ended October 28, 2017 and October 29, 2016 are not necessarily indicative of the consolidated operating results for the year ending February 3, 2018 or any other period. The Company's business is seasonal and as a result, the Company's net sales fluctuate from quarter to quarter. Net sales are usually highest in the fourth fiscal quarter due to the year-end holiday season. (d) Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, "Revenue from Contracts with Customers." ASU 2014-09 clarifies the principles for recognizing revenue from contracts with customers. The update outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date." ASU 2015-14 deferred the effective date of ASU 2014-09 to fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for annual reporting periods beginning after December 15, 2016, including interim periods within those annual periods. In the first six months of fiscal 2016, the FASB issued guidance clarifying the interpretation of certain principles of ASU 2014-09. On the effective date, the Company may use either a full retrospective approach or a modified retrospective approach to adopt ASU 2014-09. While the Company is currently evaluating the impact of this ASU, it is not expected to materially impact our consolidated financial statements. Other areas which could be impacted, including the recognition of gift card breakage income, may be identified as the Company continues its evaluation of the ASU. In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 requires that lease arrangements longer than 12 months result in an entity recognizing an asset and a liability. The updated guidance is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. The standard requires use of the modified retrospective transition approach. While the Company is currently evaluating this standard, given the significant amount of leases the Company is party to, the Company expects this standard will have a significant impact on the Company's consolidated financial statements from the recognition of right of use assets and related liabilities. The Company plans to adopt this standard in the first quarter of fiscal 2019, coinciding with the standard’s effective date. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 affects all entities that issue share-based payment awards to their employees. This accounting standards update makes several modifications to the accounting for employee share-based payment transactions, including the requirement that the excess income tax benefits or deficiencies that arise when the tax consequences of share-based compensation differ from amounts previously recognized in the consolidated statement of operations be recognized as income tax benefit or expense in the consolidated statement of operations rather than as additional paid-in capital in the consolidated balance sheets. The guidance also clarifies the classification of components of share-based awards on the consolidated statement of cash flows such that excess income tax benefits should not be presented separately from other income taxes in the consolidated statement of cash flows and, thus, should be classified as an operating activity rather than a financing activity as they are under the current guidance. ASU 2016-09 is effective for financial statements issued for annual reporting periods beginning after December 15, 2016 and interim periods within those years. The Company adopted this standard prospectively in the first quarter of fiscal 2017. This standard will result in a decrease or increase to the Company's effective tax rate, net income, and earnings per share based upon the requirement to recognize the excess income tax benefits or deficiencies in the consolidated statements of operations and change the Company's earnings per share calculation to exclude excess tax benefits previously assumed under the treasury stock method. No changes were required related to the classification of employee taxes paid for withheld shares in the Company's consolidated statements of cash flows since the Company has historically classified these within financing cash flows. (e) Use of Estimates The preparation of the consolidated financial statements requires management of the Company to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, valuation allowances for inventories, income taxes and share-based compensation expense. (f) Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation at the measurement date: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Inputs, other than Level 1, that are either directly or indirectly observable. Level 3: Unobservable inputs developed using the Company’s estimates and assumptions which reflect those that market participants would use. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. The Company’s financial instruments consist primarily of cash equivalents, short-term and long-term investment securities, accounts payable, and borrowings, if any, under a line of credit. The Company believes that: (1) the carrying value of cash equivalents and accounts payable are representative of their respective fair value due to the short-term nature of these instruments; and (2) the carrying value of the borrowings, if any, under the line of credit approximates fair value because the line of credit’s interest rates vary with market interest rates. Under the fair value hierarchy, the fair market values of the short-term and long-term investments in corporate bonds are level 1 while the short-term and long-term investments in certificates of deposits and municipals bonds are level 2. The fair market values of level 2 instruments are determined by management with the assistance of a third party pricing service. Since quoted prices in active markets for identical assets are not available, these prices are determined by the third party pricing service using observable market information such as quotes from less active markets and quoted prices of similar securities. As of October 28, 2017 , January 28, 2017 , and October 29, 2016 , the Company had cash equivalents of $16.7 million , $36.3 million and $35.8 million , respectively. The Company’s cash equivalents consist of credit and debit card receivables, money market funds, certificates of deposit, and short-term municipal bonds and corporate bonds. Fair value for cash equivalents was determined based on Level 1 inputs. As of October 28, 2017 , January 28, 2017 , and October 29, 2016 , the Company's short-term investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following (in thousands): As of October 28, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 50,778 $ — $ 46 $ 50,732 Municipal bonds 5,900 — — 5,900 Total $ 56,678 $ — $ 46 $ 56,632 Long-term: Corporate bonds $ 23,177 $ — $ 98 $ 23,079 Total $ 23,177 $ — $ 98 $ 23,079 As of January 28, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 45,558 $ — $ 98 $ 45,460 Municipal bonds 32,233 — 14 32,219 Total $ 77,791 $ — $ 112 $ 77,679 Long-term: Corporate bonds $ 6,265 $ — $ 11 $ 6,254 Municipal bonds 4,249 8 — 4,257 Total $ 10,514 $ 8 $ 11 $ 10,511 As of October 29, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 6,366 $ — $ 7 $ 6,359 Municipal bonds 3,546 1 3,545 Total $ 9,912 $ — $ 8 $ 9,904 Short-term investment securities as of October 28, 2017 , January 28, 2017 , and October 29, 2016 all mature in one year or less. Long-term investment securities as of October 28, 2017 and January 28, 2017 all mature after one year but in less than three years. |
Income (Loss) Per Common Share
Income (Loss) Per Common Share | 9 Months Ended |
Oct. 28, 2017 | |
Earnings Per Share [Abstract] | |
Income (Loss) Per Common Share | (2) Income Per Common Share Basic income per common share amounts are calculated using the weighted-average number of common shares outstanding for the period. Diluted income per common share amounts are calculated using the weighted-average number of common shares outstanding for the period and include the dilutive impact of exercise of stock options as well as assumed lapse of restrictions on restricted stock awards and shares currently available for purchase under the Company's Employee Stock Purchase Plan, using the treasury stock method. Performance-based restricted stock units are considered contingently issuable shares for diluted income per common share purposes and the dilutive impact, if any, is not included in the weighted-average shares until the performance conditions are met. The following table reconciles net income and the weighted average common shares outstanding used in the computations of basic and diluted income per common share (in thousands, except for share and per share data): Thirteen Weeks Ended Thirty-Nine Weeks Ended October 28, 2017 October 29, 2016 October 28, 2017 October 29, 2016 Numerator: Net income $ 9,879 $ 5,447 $ 35,074 $ 22,052 Denominator: Weighted average common shares outstanding - basic 55,215,850 54,871,172 55,148,316 54,809,768 Dilutive impact of options, restricted stock units and employee stock purchase plan 392,185 299,514 345,136 290,766 Weighted average common shares outstanding - diluted 55,608,035 55,170,686 55,493,452 55,100,534 Per common share: Basic income per common share $ 0.18 $ 0.10 $ 0.64 $ 0.40 Diluted income per common share $ 0.18 $ 0.10 $ 0.63 $ 0.40 The effects of the assumed exercise of stock options for 88,825 shares of common stock for the thirty-nine weeks ended October 28, 2017 were excluded from the calculation of diluted net income per share as their impact would have been anti-dilutive. The effects of the assumed exercise of restricted stock units for 17,762 shares of common stock for the thirty-nine weeks ended October 28, 2017 were excluded from the calculation of diluted net income per share as their impact would have been anti-dilutive. The effects of the assumed exercise of stock options for 61,611 and 196,042 shares of common stock for the thirteen weeks ended and thirty-nine weeks ended October 29, 2016 , respectively, were excluded from the calculation of diluted net income per share as their impact would have been anti-dilutive. The effects of the assumed exercise of restricted stock units for 1,376 shares of common stock for the thirty-nine weeks ended October 29, 2016 were excluded from the calculation of diluted net income per share as their impact would have been anti-dilutive. The aforementioned excluded shares do not reflect the impact of any incremental repurchases under the treasury stock method. |
Line of Credit
Line of Credit | 9 Months Ended |
Oct. 28, 2017 | |
Debt Disclosure [Abstract] | |
Financing Transactions, Line of Credit and Note Payable | (3) Line of Credit On May 10, 2017, the Company entered into a Fourth Amended and Restated Loan and Security Agreement (the “Amended Loan and Security Agreement”), among the Company, Five Below Merchandising, Inc. and Wells Fargo Bank, National Association. The Amended Loan and Security Agreement amends and restates the Third Amended and Restated Loan and Security Agreement, dated June 12, 2013, among the Company, Five Below Merchandising, Inc. and Wells Fargo Bank, National Association, which governed the Revolving Credit Facility. The Amended Loan and Security Agreement includes a revolving line of credit in the amount of up to $20.0 million (the “Amended Revolving Credit Facility”). Pursuant to the Amended Loan and Security Agreement, advances under the Amended Revolving Credit Facility are no longer tied to a borrowing base; however, the Company is required to maintain eligible inventory at all times in an amount equal to at least $100.0 million . The Amended Revolving Credit Facility expires on the earliest to occur of (i) May 10, 2022 or (ii) an event of default. The Amended Revolving Credit Facility may be increased to up to $50.0 million , subject to certain conditions. The Amended Revolving Credit Facility also includes a $20.0 million sub limit for the issuance of letters of credit. The Amended Loan and Security Agreement reduces the interest rate payable on borrowings to be, at the Company’s option, a per annum rate equal to (a) a prime rate or (b) a LIBOR-based rate plus a margin of 1.00% . Letter of credit fees are equal to the interest rate payable on LIBOR-based loans. The interest rate and letter of credit fees under the Amended Loan and Security Agreement are subject to an increase of 2.00% per annum upon an event of default. The Amended Loan and Security Agreement removes restrictions on the Company’s ability to pay or make dividends and distributions or repurchase its stock, but the Amended Loan and Security Agreement continues to include other customary negative and affirmative covenants including, among other things, limitations on the Company’s ability to (i) incur additional debt; (ii) create liens; (iii) make certain investments, loans and advances; (iv) sell assets; (v) engage in mergers or consolidations; or (vi) change its business. The Amended Loan and Security Agreement also removes the provisions that required the Company to make prepayments on outstanding Amended Revolving Credit Facility balances upon the receipt of certain proceeds, including those from the sale of certain assets. Amounts under the Amended Revolving Credit Facility may become due upon certain events of default including, among other things, the Company’s failure to comply with the Amended Revolving Credit Facility’s covenants, bankruptcy, default on certain other indebtedness or a change in control. Under the Amended Loan and Security Agreement, all obligations under the Amended Revolving Credit Facility continue to be guaranteed by Five Below Merchandising, Inc., a wholly-owned subsidiary of the Company, and are secured by substantially all of the assets of the Company and Five Below Merchandising, Inc. As of October 28, 2017 , the Company had no borrowings under the Amended Revolving Credit Facility and had approximately $20 million available on the line of credit. All obligations under the Amended Revolving Credit Facility are secured by substantially all of the Company's assets and are guaranteed by the Company's subsidiary. As of October 28, 2017 and October 29, 2016 , the Company was in compliance with the covenants applicable to it under the Amended Revolving Credit Facility. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 28, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (4) Commitments and Contingencies Commitments Leases The Company leases property and equipment under non-cancelable operating leases. Certain retail store lease agreements provide for contingent rental payments if the store’s net sales exceed stated levels (percentage rents) and/or contain escalation clauses, which provide for increases in base rental for increases in future operating costs. Many of the Company’s leases provide for one or more renewal options for periods of five years . The Company’s operating lease agreements, including assumed extensions, which are generally those that take the lease to a ten -year term, expire through fiscal 2033. During the thirteen weeks ended October 28, 2017 , the Company committed to 24 new store leases with terms of 10 to 15 years that have future minimum lease payments of approximately $42.9 million . In September 2016, the Company signed a fifteen -year lease for a new corporate headquarters location in Philadelphia, Pennsylvania to accommodate the Company’s current and anticipated future growth. The Company expects to initially occupy approximately 115,000 square feet of office space in early 2018 and expects to expand into approximately 20,000 square feet of additional office space by no later than 2023. The lease agreement has future minimum lease payments of approximately $50 million and expires in early 2033 with three successive options to renew for an additional term up to approximately fifteen years. Other contractual commitments As of October 28, 2017 , the Company has other purchase commitments of approximately $5.3 million consisting of purchase agreements for materials that will be used in the construction of new stores. Contingencies Legal Matters From time to time, the Company is involved in certain legal actions arising in the ordinary course of business. In management’s opinion, the outcome of such actions will not have a material adverse effect on the Company’s financial condition or results of operations. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Oct. 28, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | (5) Share-Based Compensation Equity Incentive Plan Pursuant to the Company's 2002 Equity Incentive Plan (the “Plan”), the Company’s board of directors may grant stock options, restricted shares, and restricted stock units to officers, directors, key employees and professional service providers. The Plan, as amended, allows for the issuance of up to a total of 7,600,000 shares under the Plan. As of October 28, 2017 , 3,401,707 stock options, restricted shares, or restricted stock units were available for grant. Common Stock Options All stock options have a term not greater than ten years. Stock options vest and become exercisable in whole or in part, in accordance with vesting conditions set by the compensation committee of the Company’s board of directors. Options granted to date generally vest over four years from the date of grant. Stock option activity under the Plan was as follows: Options Weighted Weighted Balance as of January 28, 2017 866,637 $ 29.60 6.7 Forfeited (18,972 ) 37.11 Exercised (138,312 ) 27.45 Balance as of October 28, 2017 709,353 29.82 6.0 Exercisable as of October 28, 2017 564,365 $ 28.69 5.6 The fair value of each option award granted to employees, including outside directors, is estimated on the date of grant using the Black-Scholes option-pricing model. There were no stock options issued during the thirty-nine weeks ended October 28, 2017 . Restricted Stock Units and Performance-Based Restricted Stock Units All restricted stock units ("RSU") and performance-based restricted stock units ("PSU") vest in accordance with vesting conditions set by the compensation committee of the Company’s board of directors. RSU's granted to date have vesting periods ranging from less than one year to five years from the date of grant. PSU's granted to date have vesting periods ranging from one year to five years from the date of grant, including grants that have a cumulative three year performance period, subject to satisfaction of the applicable performance goals established for the respective grant. The Company periodically assesses the probability of achievement of the performance criteria and adjusts the amount of compensation expense accordingly. Compensation is recognized over the vesting period and adjusted for the probability of achievement of the performance criteria. RSU and PSU activity during the thirty-nine weeks ended October 28, 2017 was as follows: Restricted Stock Units Performance-Based Restricted Stock Units Number Weighted-Average Grant Date Fair Value Number Weighted-Average Grant Date Fair Value Non-vested balance as of January 28, 2017 275,176 $ 36.27 504,556 $ 36.91 Granted 153,915 39.99 147,552 39.65 Vested (70,807 ) 34.17 (141,003 ) 38.15 Forfeited (25,327 ) 42.40 (9,541 ) 33.40 Non-vested balance as of October 28, 2017 332,957 $ 37.97 501,564 $ 37.43 In connection with the vesting of RSU's and PSU's during the thirty-nine weeks ended October 28, 2017 , the Company withheld 26,117 shares with an aggregate value of $1.1 million in satisfaction of minimum tax withholding obligations due upon vesting. As of October 28, 2017 , there was $17.0 million of total unrecognized compensation costs related to non-vested share-based compensation arrangements (including stock options, restricted stock units and performance-based restricted stock units) granted under the Plan. That cost is expected to be recognized over a weighted average vesting period of 2.3 years. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 28, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (6) Income Taxes The following table summarizes the Company’s income tax expense and effective tax rates for the thirteen and thirty-nine weeks ended October 28, 2017 and October 29, 2016 (dollars in thousands): Thirteen Weeks Ended Thirty-Nine Weeks Ended October 28, 2017 October 29, 2016 October 28, 2017 October 29, 2016 Income before income taxes $ 15,147 $ 8,695 $ 54,798 $ 35,308 Income tax expense $ 5,268 $ 3,248 $ 19,724 $ 13,256 Effective tax rate 34.8 % 37.4 % 36.0 % 37.5 % The effective tax rates for the thirteen and thirty-nine weeks ended October 28, 2017 and October 29, 2016 were based on the Company’s forecasted annualized effective tax rates and were adjusted for discrete items that occurred within the periods presented. The effective tax rate for the thirteen and thirty-nine weeks ended October 28, 2017 was lower than the thirteen and thirty-nine weeks ended October 29, 2016 primarily due to discrete items, which include the impact of the adoption of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," with respect to the requirement to recognize excess income tax benefits or deficiencies as income tax benefit or expense in the consolidated statements of operations rather than as additional paid-in capital in the consolidated balance sheets. The Company had no material accrual for uncertain tax positions or interest or penalties related to income taxes on the Company’s balance sheets as of October 28, 2017 , January 28, 2017 , or October 29, 2016 and has not recognized any material uncertain tax positions or interest and/or penalties related to income taxes in the consolidated statements of operations for the thirteen and thirty-nine weeks ended October 28, 2017 or October 29, 2016 . The Company files a federal income tax return as well as state tax returns. The Company’s U.S. federal income tax returns for the fiscal years ended February 1, 2014 and thereafter remain subject to examination by the U.S. Internal Revenue Service. State returns are filed in various state jurisdictions, as appropriate, with varying statutes of limitation and remain subject to examination for varying periods up to three to four years depending on the state. |
Summary of Significant Accoun13
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 28, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | (1) Summary of Significant Accounting Policies (a) Nature of Business Five Below, Inc. (collectively with its wholly owned subsidiary as the "Company") is a specialty value retailer offering merchandise targeted at the teen and pre-teen demographic. The Company offers an edited assortment of products, priced at $5 and below. In August 2016, the Company commenced selling merchandise on the internet, through the Company's fivebelow.com e-commerce website. The Company’s edited assortment of products includes select brands and licensed merchandise. The Company believes its merchandise is readily available, and that there are a number of potential vendors that could be utilized, if necessary, under approximately the same terms the Company is currently receiving; thus, it is not dependent on a single vendor or a group of vendors. The Company is incorporated in the Commonwealth of Pennsylvania and, as of October 28, 2017 , operated in 32 states that include Pennsylvania, New Jersey, Delaware, Maryland, Virginia, Massachusetts, New Hampshire, West Virginia, North Carolina, New York, Connecticut, Rhode Island, Ohio, Illinois, Indiana, Michigan, Missouri, Georgia, Texas, Tennessee, Maine, Alabama, Kentucky, Kansas, Florida, South Carolina, Mississippi, Louisiana, Wisconsin, Oklahoma, Minnesota and California. As of October 28, 2017 and October 29, 2016 , the Company operated 625 stores and 517 stores, respectively, each operating under the name “Five Below.” (b) Fiscal Year The Company operates on a 52/53-week fiscal year ending on the Saturday closest to January 31. References to "fiscal year 2017" or "fiscal 2017" refer to the period from January 29, 2017 to February 3, 2018 and consists of a 53-week fiscal year. References to "fiscal year 2016" or "fiscal 2016" refer to the period from January 31, 2016 to January 28, 2017 and consists of a 52-week fiscal year. The fiscal quarters ended October 28, 2017 and October 29, 2016 refer to the thirteen weeks ended as of those dates. The year-to-date periods ended October 28, 2017 and October 29, 2016 refer to the thirty-nine weeks ended as of those dates. (c) Basis of Presentation The consolidated balance sheets as of October 28, 2017 and October 29, 2016 , the consolidated statements of operations for the thirteen and thirty-nine weeks ended October 28, 2017 and October 29, 2016 , the consolidated statement of shareholders’ equity for the thirty-nine weeks ended October 28, 2017 and the consolidated statements of cash flows for the thirty-nine weeks ended October 28, 2017 and October 29, 2016 have been prepared by the Company in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim reporting and are unaudited. In the opinion of management, the aforementioned financial statements include all known adjustments (which consist primarily of normal, recurring accruals, estimates and assumptions that impact the financial statements) necessary to present fairly the financial position at the balance sheet dates and the results of operations and cash flows for the periods ended October 28, 2017 and October 29, 2016 . The balance sheet as of January 28, 2017 , presented herein, has been derived from the audited balance sheet included in the Company's Annual Report on Form 10-K for fiscal 2016 as filed with the Securities and Exchange Commission on March 23, 2017 and referred to herein as the “Annual Report,” but does not include all annual disclosures required by U.S. GAAP. These consolidated financial statements should be read in conjunction with the financial statements for the fiscal year ended January 28, 2017 and footnotes thereto included in the Annual Report. The consolidated results of operations for the thirteen and thirty-nine weeks ended October 28, 2017 and October 29, 2016 are not necessarily indicative of the consolidated operating results for the year ending February 3, 2018 or any other period. The Company's business is seasonal and as a result, the Company's net sales fluctuate from quarter to quarter. Net sales are usually highest in the fourth fiscal quarter due to the year-end holiday season. (d) Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, "Revenue from Contracts with Customers." ASU 2014-09 clarifies the principles for recognizing revenue from contracts with customers. The update outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date." ASU 2015-14 deferred the effective date of ASU 2014-09 to fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for annual reporting periods beginning after December 15, 2016, including interim periods within those annual periods. In the first six months of fiscal 2016, the FASB issued guidance clarifying the interpretation of certain principles of ASU 2014-09. On the effective date, the Company may use either a full retrospective approach or a modified retrospective approach to adopt ASU 2014-09. While the Company is currently evaluating the impact of this ASU, it is not expected to materially impact our consolidated financial statements. Other areas which could be impacted, including the recognition of gift card breakage income, may be identified as the Company continues its evaluation of the ASU. In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 requires that lease arrangements longer than 12 months result in an entity recognizing an asset and a liability. The updated guidance is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. The standard requires use of the modified retrospective transition approach. While the Company is currently evaluating this standard, given the significant amount of leases the Company is party to, the Company expects this standard will have a significant impact on the Company's consolidated financial statements from the recognition of right of use assets and related liabilities. The Company plans to adopt this standard in the first quarter of fiscal 2019, coinciding with the standard’s effective date. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 affects all entities that issue share-based payment awards to their employees. This accounting standards update makes several modifications to the accounting for employee share-based payment transactions, including the requirement that the excess income tax benefits or deficiencies that arise when the tax consequences of share-based compensation differ from amounts previously recognized in the consolidated statement of operations be recognized as income tax benefit or expense in the consolidated statement of operations rather than as additional paid-in capital in the consolidated balance sheets. The guidance also clarifies the classification of components of share-based awards on the consolidated statement of cash flows such that excess income tax benefits should not be presented separately from other income taxes in the consolidated statement of cash flows and, thus, should be classified as an operating activity rather than a financing activity as they are under the current guidance. ASU 2016-09 is effective for financial statements issued for annual reporting periods beginning after December 15, 2016 and interim periods within those years. The Company adopted this standard prospectively in the first quarter of fiscal 2017. This standard will result in a decrease or increase to the Company's effective tax rate, net income, and earnings per share based upon the requirement to recognize the excess income tax benefits or deficiencies in the consolidated statements of operations and change the Company's earnings per share calculation to exclude excess tax benefits previously assumed under the treasury stock method. No changes were required related to the classification of employee taxes paid for withheld shares in the Company's consolidated statements of cash flows since the Company has historically classified these within financing cash flows. (e) Use of Estimates The preparation of the consolidated financial statements requires management of the Company to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, valuation allowances for inventories, income taxes and share-based compensation expense. (f) Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation at the measurement date: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Inputs, other than Level 1, that are either directly or indirectly observable. Level 3: Unobservable inputs developed using the Company’s estimates and assumptions which reflect those that market participants would use. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. The Company’s financial instruments consist primarily of cash equivalents, short-term and long-term investment securities, accounts payable, and borrowings, if any, under a line of credit. The Company believes that: (1) the carrying value of cash equivalents and accounts payable are representative of their respective fair value due to the short-term nature of these instruments; and (2) the carrying value of the borrowings, if any, under the line of credit approximates fair value because the line of credit’s interest rates vary with market interest rates. Under the fair value hierarchy, the fair market values of the short-term and long-term investments in corporate bonds are level 1 while the short-term and long-term investments in certificates of deposits and municipals bonds are level 2. The fair market values of level 2 instruments are determined by management with the assistance of a third party pricing service. Since quoted prices in active markets for identical assets are not available, these prices are determined by the third party pricing service using observable market information such as quotes from less active markets and quoted prices of similar securities. As of October 28, 2017 , January 28, 2017 , and October 29, 2016 , the Company had cash equivalents of $16.7 million , $36.3 million and $35.8 million , respectively. The Company’s cash equivalents consist of credit and debit card receivables, money market funds, certificates of deposit, and short-term municipal bonds and corporate bonds. Fair value for cash equivalents was determined based on Level 1 inputs. As of October 28, 2017 , January 28, 2017 , and October 29, 2016 , the Company's short-term investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following (in thousands): As of October 28, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 50,778 $ — $ 46 $ 50,732 Municipal bonds 5,900 — — 5,900 Total $ 56,678 $ — $ 46 $ 56,632 Long-term: Corporate bonds $ 23,177 $ — $ 98 $ 23,079 Total $ 23,177 $ — $ 98 $ 23,079 As of January 28, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 45,558 $ — $ 98 $ 45,460 Municipal bonds 32,233 — 14 32,219 Total $ 77,791 $ — $ 112 $ 77,679 Long-term: Corporate bonds $ 6,265 $ — $ 11 $ 6,254 Municipal bonds 4,249 8 — 4,257 Total $ 10,514 $ 8 $ 11 $ 10,511 As of October 29, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 6,366 $ — $ 7 $ 6,359 Municipal bonds 3,546 1 3,545 Total $ 9,912 $ — $ 8 $ 9,904 Short-term investment securities as of October 28, 2017 , January 28, 2017 , and October 29, 2016 all mature in one year or less. Long-term investment securities as of October 28, 2017 and January 28, 2017 all mature after one year but in less than three years. |
Nature of Business | (a) Nature of Business Five Below, Inc. (collectively with its wholly owned subsidiary as the "Company") is a specialty value retailer offering merchandise targeted at the teen and pre-teen demographic. The Company offers an edited assortment of products, priced at $5 and below. In August 2016, the Company commenced selling merchandise on the internet, through the Company's fivebelow.com e-commerce website. The Company’s edited assortment of products includes select brands and licensed merchandise. The Company believes its merchandise is readily available, and that there are a number of potential vendors that could be utilized, if necessary, under approximately the same terms the Company is currently receiving; thus, it is not dependent on a single vendor or a group of vendors. The Company is incorporated in the Commonwealth of Pennsylvania and, as of October 28, 2017 , operated in 32 states that include Pennsylvania, New Jersey, Delaware, Maryland, Virginia, Massachusetts, New Hampshire, West Virginia, North Carolina, New York, Connecticut, Rhode Island, Ohio, Illinois, Indiana, Michigan, Missouri, Georgia, Texas, Tennessee, Maine, Alabama, Kentucky, Kansas, Florida, South Carolina, Mississippi, Louisiana, Wisconsin, Oklahoma, Minnesota and California. As of October 28, 2017 and October 29, 2016 , the Company operated 625 stores and 517 stores, respectively, each operating under the name “Five Below.” |
Fiscal Year | (b) Fiscal Year The Company operates on a 52/53-week fiscal year ending on the Saturday closest to January 31. References to "fiscal year 2017" or "fiscal 2017" refer to the period from January 29, 2017 to February 3, 2018 and consists of a 53-week fiscal year. References to "fiscal year 2016" or "fiscal 2016" refer to the period from January 31, 2016 to January 28, 2017 and consists of a 52-week fiscal year. The fiscal quarters ended October 28, 2017 and October 29, 2016 refer to the thirteen weeks ended as of those dates. The year-to-date periods ended October 28, 2017 and October 29, 2016 refer to the thirty-nine weeks ended as of those dates. |
Basis of Presentation | (c) Basis of Presentation The consolidated balance sheets as of October 28, 2017 and October 29, 2016 , the consolidated statements of operations for the thirteen and thirty-nine weeks ended October 28, 2017 and October 29, 2016 , the consolidated statement of shareholders’ equity for the thirty-nine weeks ended October 28, 2017 and the consolidated statements of cash flows for the thirty-nine weeks ended October 28, 2017 and October 29, 2016 have been prepared by the Company in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim reporting and are unaudited. In the opinion of management, the aforementioned financial statements include all known adjustments (which consist primarily of normal, recurring accruals, estimates and assumptions that impact the financial statements) necessary to present fairly the financial position at the balance sheet dates and the results of operations and cash flows for the periods ended October 28, 2017 and October 29, 2016 . The balance sheet as of January 28, 2017 , presented herein, has been derived from the audited balance sheet included in the Company's Annual Report on Form 10-K for fiscal 2016 as filed with the Securities and Exchange Commission on March 23, 2017 and referred to herein as the “Annual Report,” but does not include all annual disclosures required by U.S. GAAP. These consolidated financial statements should be read in conjunction with the financial statements for the fiscal year ended January 28, 2017 and footnotes thereto included in the Annual Report. The consolidated results of operations for the thirteen and thirty-nine weeks ended October 28, 2017 and October 29, 2016 are not necessarily indicative of the consolidated operating results for the year ending February 3, 2018 or any other period. The Company's business is seasonal and as a result, the Company's net sales fluctuate from quarter to quarter. Net sales are usually highest in the fourth fiscal quarter due to the year-end holiday season. |
Use of Estimates | (e) Use of Estimates The preparation of the consolidated financial statements requires management of the Company to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, valuation allowances for inventories, income taxes and share-based compensation expense. |
Fair Value of Financial Instruments | (f) Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation at the measurement date: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Inputs, other than Level 1, that are either directly or indirectly observable. Level 3: Unobservable inputs developed using the Company’s estimates and assumptions which reflect those that market participants would use. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. The Company’s financial instruments consist primarily of cash equivalents, short-term and long-term investment securities, accounts payable, and borrowings, if any, under a line of credit. The Company believes that: (1) the carrying value of cash equivalents and accounts payable are representative of their respective fair value due to the short-term nature of these instruments; and (2) the carrying value of the borrowings, if any, under the line of credit approximates fair value because the line of credit’s interest rates vary with market interest rates. Under the fair value hierarchy, the fair market values of the short-term and long-term investments in corporate bonds are level 1 while the short-term and long-term investments in certificates of deposits and municipals bonds are level 2. The fair market values of level 2 instruments are determined by management with the assistance of a third party pricing service. Since quoted prices in active markets for identical assets are not available, these prices are determined by the third party pricing service using observable market information such as quotes from less active markets and quoted prices of similar securities. As of October 28, 2017 , January 28, 2017 , and October 29, 2016 , the Company had cash equivalents of $16.7 million , $36.3 million and $35.8 million , respectively. The Company’s cash equivalents consist of credit and debit card receivables, money market funds, certificates of deposit, and short-term municipal bonds and corporate bonds. Fair value for cash equivalents was determined based on Level 1 inputs. As of October 28, 2017 , January 28, 2017 , and October 29, 2016 , the Company's short-term investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following (in thousands): As of October 28, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 50,778 $ — $ 46 $ 50,732 Municipal bonds 5,900 — — 5,900 Total $ 56,678 $ — $ 46 $ 56,632 Long-term: Corporate bonds $ 23,177 $ — $ 98 $ 23,079 Total $ 23,177 $ — $ 98 $ 23,079 As of January 28, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 45,558 $ — $ 98 $ 45,460 Municipal bonds 32,233 — 14 32,219 Total $ 77,791 $ — $ 112 $ 77,679 Long-term: Corporate bonds $ 6,265 $ — $ 11 $ 6,254 Municipal bonds 4,249 8 — 4,257 Total $ 10,514 $ 8 $ 11 $ 10,511 As of October 29, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 6,366 $ — $ 7 $ 6,359 Municipal bonds 3,546 1 3,545 Total $ 9,912 $ — $ 8 $ 9,904 Short-term investment securities as of October 28, 2017 , January 28, 2017 , and October 29, 2016 all mature in one year or less. Long-term investment securities as of October 28, 2017 and January 28, 2017 all mature after one year but in less than three years. |
New Accounting Pronouncements, Policy [Policy Text Block] | (d) Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, "Revenue from Contracts with Customers." ASU 2014-09 clarifies the principles for recognizing revenue from contracts with customers. The update outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date." ASU 2015-14 deferred the effective date of ASU 2014-09 to fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for annual reporting periods beginning after December 15, 2016, including interim periods within those annual periods. In the first six months of fiscal 2016, the FASB issued guidance clarifying the interpretation of certain principles of ASU 2014-09. On the effective date, the Company may use either a full retrospective approach or a modified retrospective approach to adopt ASU 2014-09. While the Company is currently evaluating the impact of this ASU, it is not expected to materially impact our consolidated financial statements. Other areas which could be impacted, including the recognition of gift card breakage income, may be identified as the Company continues its evaluation of the ASU. In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 requires that lease arrangements longer than 12 months result in an entity recognizing an asset and a liability. The updated guidance is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. The standard requires use of the modified retrospective transition approach. While the Company is currently evaluating this standard, given the significant amount of leases the Company is party to, the Company expects this standard will have a significant impact on the Company's consolidated financial statements from the recognition of right of use assets and related liabilities. The Company plans to adopt this standard in the first quarter of fiscal 2019, coinciding with the standard’s effective date. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 affects all entities that issue share-based payment awards to their employees. This accounting standards update makes several modifications to the accounting for employee share-based payment transactions, including the requirement that the excess income tax benefits or deficiencies that arise when the tax consequences of share-based compensation differ from amounts previously recognized in the consolidated statement of operations be recognized as income tax benefit or expense in the consolidated statement of operations rather than as additional paid-in capital in the consolidated balance sheets. The guidance also clarifies the classification of components of share-based awards on the consolidated statement of cash flows such that excess income tax benefits should not be presented separately from other income taxes in the consolidated statement of cash flows and, thus, should be classified as an operating activity rather than a financing activity as they are under the current guidance. ASU 2016-09 is effective for financial statements issued for annual reporting periods beginning after December 15, 2016 and interim periods within those years. The Company adopted this standard prospectively in the first quarter of fiscal 2017. This standard will result in a decrease or increase to the Company's effective tax rate, net income, and earnings per share based upon the requirement to recognize the excess income tax benefits or deficiencies in the consolidated statements of operations and change the Company's earnings per share calculation to exclude excess tax benefits previously assumed under the treasury stock method. No changes were required related to the classification of employee taxes paid for withheld shares in the Company's consolidated statements of cash flows since the Company has historically classified these within financing cash flows. |
Income (Loss) Per Common Share
Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Oct. 28, 2017 | |
Earnings Per Share [Abstract] | |
Computations Of Basic And Diluted Income (Loss) Per Share | The following table reconciles net income and the weighted average common shares outstanding used in the computations of basic and diluted income per common share (in thousands, except for share and per share data): Thirteen Weeks Ended Thirty-Nine Weeks Ended October 28, 2017 October 29, 2016 October 28, 2017 October 29, 2016 Numerator: Net income $ 9,879 $ 5,447 $ 35,074 $ 22,052 Denominator: Weighted average common shares outstanding - basic 55,215,850 54,871,172 55,148,316 54,809,768 Dilutive impact of options, restricted stock units and employee stock purchase plan 392,185 299,514 345,136 290,766 Weighted average common shares outstanding - diluted 55,608,035 55,170,686 55,493,452 55,100,534 Per common share: Basic income per common share $ 0.18 $ 0.10 $ 0.64 $ 0.40 Diluted income per common share $ 0.18 $ 0.10 $ 0.63 $ 0.40 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Oct. 28, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | Stock option activity under the Plan was as follows: Options Weighted Weighted Balance as of January 28, 2017 866,637 $ 29.60 6.7 Forfeited (18,972 ) 37.11 Exercised (138,312 ) 27.45 Balance as of October 28, 2017 709,353 29.82 6.0 Exercisable as of October 28, 2017 564,365 $ 28.69 5.6 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | RSU and PSU activity during the thirty-nine weeks ended October 28, 2017 was as follows: Restricted Stock Units Performance-Based Restricted Stock Units Number Weighted-Average Grant Date Fair Value Number Weighted-Average Grant Date Fair Value Non-vested balance as of January 28, 2017 275,176 $ 36.27 504,556 $ 36.91 Granted 153,915 39.99 147,552 39.65 Vested (70,807 ) 34.17 (141,003 ) 38.15 Forfeited (25,327 ) 42.40 (9,541 ) 33.40 Non-vested balance as of October 28, 2017 332,957 $ 37.97 501,564 $ 37.43 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Oct. 28, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The following table summarizes the Company’s income tax expense and effective tax rates for the thirteen and thirty-nine weeks ended October 28, 2017 and October 29, 2016 (dollars in thousands): Thirteen Weeks Ended Thirty-Nine Weeks Ended October 28, 2017 October 29, 2016 October 28, 2017 October 29, 2016 Income before income taxes $ 15,147 $ 8,695 $ 54,798 $ 35,308 Income tax expense $ 5,268 $ 3,248 $ 19,724 $ 13,256 Effective tax rate 34.8 % 37.4 % 36.0 % 37.5 % |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Nature of Business) (Details) | Oct. 28, 2017USD ($)Storestate | Oct. 29, 2016Store |
Accounting Policies [Abstract] | ||
Products offering price, maximum price | $ | $ 5 | |
Number of States in which Entity Operates | state | 32 | |
Number of Stores | Store | 625 | 517 |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Oct. 28, 2017 | Jan. 28, 2017 | Oct. 29, 2016 |
Significant Accounting Policies [Line Items] | |||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | $ 56,678 | $ 77,791 | $ 9,912 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | 0 | 0 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 46 | 112 | 8 |
Held-to-maturity Securities, Fair Value | 56,632 | 77,679 | 9,904 |
Fair Value, Inputs, Level 1 [Member] | |||
Significant Accounting Policies [Line Items] | |||
Cash equivalents | 16,700 | 36,300 | 35,800 |
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Significant Accounting Policies [Line Items] | |||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 50,778 | 45,558 | 6,366 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | 0 | 0 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 46 | 98 | 7 |
Held-to-maturity Securities, Fair Value | 50,732 | 45,460 | 6,359 |
Municipal Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Significant Accounting Policies [Line Items] | |||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 5,900 | 32,233 | 3,546 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | 0 | |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 0 | 14 | 1 |
Held-to-maturity Securities, Fair Value | 5,900 | 32,219 | $ 3,545 |
Other Long-term Investments [Member] | |||
Significant Accounting Policies [Line Items] | |||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 23,177 | 10,514 | |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | 8 | |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 98 | 11 | |
Held-to-maturity Securities, Fair Value | 23,079 | 11 | |
Other Long-term Investments [Member] | Corporate Bond Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Significant Accounting Policies [Line Items] | |||
Held-to-maturity Securities, Fair Value | 23,079 | 6 | |
Other Long-term Investments [Member] | Corporate Bond Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Significant Accounting Policies [Line Items] | |||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 23,177 | 6,265 | |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | 0 | |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | $ 98 | 11 | |
Other Long-term Investments [Member] | Municipal Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Significant Accounting Policies [Line Items] | |||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 4,249 | ||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 8 | ||
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 0 | ||
Held-to-maturity Securities, Fair Value | $ 4,257 |
Income (Loss) Per Common Shar19
Income (Loss) Per Common Share (Computations Of Basic And Diluted Income (Loss) Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Numerator: | ||||
Net income | $ 9,879 | $ 5,447 | $ 35,074 | $ 22,052 |
Denominator: | ||||
Weighted-average common shares outstanding - basic (shares) | 55,215,850 | 54,871,172 | 55,148,316 | 54,809,768 |
Dilutive impact of options and warrants (shares) | 392,185 | 299,514 | 345,136 | 290,766 |
Weighted average common share outstanding - diluted (shares) | 55,608,035 | 55,170,686 | 55,493,452 | 55,100,534 |
Per common share: | ||||
Basic income (loss) per common share (dollars per share) | $ 0.18 | $ 0.10 | $ 0.64 | $ 0.40 |
Diluted income (loss) per common share (dollars per share) | $ 0.18 | $ 0.10 | $ 0.63 | $ 0.40 |
Income (Loss) Per Common Shar20
Income (Loss) Per Common Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | |
Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock not included in the computations of diluted earnings per share | 61,611 | 88,825 | 196,042 |
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock not included in the computations of diluted earnings per share | 17,762 | 1,376 |
Line of Credit (Line of Credit)
Line of Credit (Line of Credit) (Details) - Renewed Credit Facility [Member] | 9 Months Ended |
Oct. 28, 2017USD ($) | |
Debt Instrument [Line Items] | |
Revolving credit facility maximum borrowings | $ 20,000,000 |
Increase in revolving credit facility | 50,000,000 |
Issuance of letters of credit | 20,000,000 |
Revolving credit facility collateral amount | $ 100,000,000 |
Debt Instrument, Interest Rate, Increase (Decrease) | 2.00% |
Line of Credit Facility, Current Borrowing Capacity | $ 0 |
LIBOR Plus [Member] | |
Debt Instrument [Line Items] | |
Interest rate on borrowings (percent) | 1.00% |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 28, 2017USD ($)ft² | Oct. 28, 2017USD ($)ft²lease | |
Other Commitments [Line Items] | ||
Number Of Leases | lease | 24 | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 10 years | |
Purchase Commitment, Remaining Minimum Amount Committed | $ 5.3 | $ 5.3 |
Long-term Purchase Commitment, Amount | $ 42.9 | |
Operating Leases, Rent Expense, Minimum Rentals | $ 50 | |
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | |
Description of Lessee Leasing Arrangements, Operating Leases | 10 to 15 | |
Minimum [Member] | ||
Other Commitments [Line Items] | ||
Area of Real Estate Property | ft² | 115,000 | 115,000 |
Maximum [Member] | ||
Other Commitments [Line Items] | ||
Area of Real Estate Property | ft² | 20,000 | 20,000 |
Lease Agreements [Member] | ||
Other Commitments [Line Items] | ||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 15 years | |
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 15 years |
Share-Based Compensation (2002
Share-Based Compensation (2002 Equity Incentive Plan) (Details) - 2002 Equity Incentive Plan [Member] - shares | Oct. 28, 2017 | Jul. 24, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for issuance (shares) | 7,600,000 | |
Stock options and restricted shares available for grant (shares) | 3,401,707 |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule Of Stock Option Activity Under Plan) (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Oct. 28, 2017 | Jan. 28, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock Option Maximum Term | 10 years | |
Stock Option Vesting Period | 4 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options outstanding, Balance (shares) | 866,637 | |
Options outstanding, Forfeited (shares) | (18,972) | |
Options outstanding, Exercised (shares) | (138,312) | |
Options outstanding, Balance (shares) | 709,353 | 866,637 |
Options outstanding, Exercisable (shares) | 564,365,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Weighted average exercise price, Balance (dollars per share) | $ 29,600 | |
Weighted average exercise price, Forfeited (dollars per share) | 37,110 | |
Weighted average exercise price, Exercised (dollars per share) | 27,450 | |
Weighted average exercise price, Balance (dollars per share) | 29,820 | $ 29,600 |
Weighted average exercise price, Exercisable (dollars per share) | $ 28,690 | |
Weighted Average Remaining Contractual Term (in years) | 6 years | 6 years 8 months 5 days |
Weighted average remaining contractual term, Exercisable | 5 years 7 months |
Share-Based Compensation (Share
Share-Based Compensation (Share-Based Compensation Valuation of Stock Options) (Details) $ in Thousands | 9 Months Ended |
Oct. 28, 2017USD ($)shares | |
Share-based Compensation [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Number of Shares, Period Increase (Decrease) | shares | 0 |
Stock Issued During Period, Value, Stock Options Exercised | $ | $ 3,797 |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Stock Units and Performance-Based Restricted Stock Units) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Oct. 28, 2017 | Jan. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Repurchased and Retired During Period, Value | $ 1,063 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (18,972) | |
Unrecognized compensation costs related to non-vested share-based compensation | $ 17,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 3 months | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 332,957 | 275,176 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value | $ 37.97 | $ 36.27 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 153,915 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 39.99 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (70,807) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 34.17 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (25,327) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 42.40 | |
Performance Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 501,564 | 504,556 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value | $ 37.43 | $ 36.91 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 147,552 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 39.65 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (141,003) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 38.15 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (9,541) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 33.40 | |
Treasury Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Repurchased and Retired During Period, Shares | 26,117 | |
Additional Paid-in Capital [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Repurchased and Retired During Period, Value | $ 1,063 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Income Tax [Line Items] | ||||
Income before income taxes | $ 15,147,000 | $ 8,695,000 | $ 54,798,000 | $ 35,308,000 |
Income tax expense | $ 5,268,000 | $ 3,248,000 | $ 19,724,000 | $ 13,256,000 |
Effective tax rate | 34.80% | 37.40% | 36.00% | 37.50% |
Accrual for uncertain tax, interest or penalties | $ 0 | $ 0 | ||
Minimum [Member] | ||||
Income Tax [Line Items] | ||||
State income taxes, statute of limitations period (years) | 3 years | |||
Maximum [Member] | ||||
Income Tax [Line Items] | ||||
State income taxes, statute of limitations period (years) | 4 years |
Uncategorized Items - five-2017
Label | Element | Value |
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | us-gaap_StockIssuedDuringPeriodSharesRestrictedStockAwardForfeited | 2,000 |
Common Stock [Member] | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensation | 0 |
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | us-gaap_StockIssuedDuringPeriodSharesRestrictedStockAwardForfeited | 2,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod | 211,810 |