Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Aug. 03, 2019 | Aug. 28, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Entity Registrant Name | Five Below, Inc. | |
Document Period End Date | Aug. 3, 2019 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-35600 | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 75-3000378 | |
Entity Address, Address Line One | 701 Market Street | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Philadelphia | |
Entity Address, State or Province | PA | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | FIVE | |
Security Exchange Name | NASDAQ | |
Entity Central Index Key | 0001177609 | |
Current Fiscal Year End Date | --02-01 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Address, Postal Zip Code | 19106 | |
City Area Code | 215 | |
Local Phone Number | 546-7909 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 55,667,271 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 03, 2019 | Feb. 02, 2019 | Aug. 04, 2018 |
Current assets: | |||
Cash and cash equivalents | $ 178,800 | $ 251,748 | $ 133,256 |
Short-term investment securities | 90,325 | 85,412 | 131,441 |
Inventories | 272,689 | 243,636 | 228,109 |
Prepaid income taxes | 10,853 | 1,337 | 7,358 |
Prepaid expenses and other current assets | 52,436 | 60,124 | 50,210 |
Total current assets | 605,103 | 642,257 | 550,374 |
Property and equipment, net of accumulated depreciation and amortization of $187,070, $168,588, and $147,031, respectively. | 337,193 | 301,297 | 214,923 |
Operating lease assets | 709,325 | 0 | 0 |
Deferred income taxes | 2,924 | 6,126 | 3,949 |
Long-term investment securities | 1,043 | 0 | 1,404 |
Other assets | 3,830 | 2,584 | 1,687 |
Total assets | 1,659,418 | 952,264 | 772,337 |
Current liabilities: | |||
Line of credit | 0 | 0 | 0 |
Accounts payable | 108,667 | 103,692 | 103,891 |
Income taxes payable | 593 | 20,626 | 407 |
Accrued salaries and wages | 14,218 | 24,586 | 13,509 |
Other accrued expenses | 83,876 | 104,201 | 66,933 |
Operating lease liabilities | 98,507 | 0 | 0 |
Total current liabilities | 305,861 | 253,105 | 184,740 |
Deferred rent and other | 0 | 84,065 | 79,639 |
Long-term operating lease liabilities | 701,621 | 0 | 0 |
Total liabilities | 1,007,482 | 337,170 | 264,379 |
Commitments and contingencies (note 6) | |||
Shareholders’ equity: | |||
Common stock, $0.01 par value. Authorized 120,000,000 shares; issued and outstanding 55,851,643, 55,759,048, and 55,723,267 shares, respectively. | 558 | 557 | 557 |
Additional paid-in capital | 335,050 | 352,702 | 348,344 |
Retained earnings | 316,328 | 261,835 | 159,057 |
Total shareholders’ equity | 651,936 | 615,094 | 507,958 |
Total liabilities and shareholders' equity (deficit) | $ 1,659,418 | $ 952,264 | $ 772,337 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Aug. 03, 2019 | Feb. 02, 2019 | Aug. 04, 2018 |
Statement of Financial Position [Abstract] | |||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 187,070 | $ 168,588 | $ 147,031 |
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 | 55,851,643 | 55,759,048 | 55,723,267 |
Common stock, shares outstanding | 55,851,643 | 55,759,048 | 55,723,267 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2019 | Aug. 04, 2018 | Aug. 03, 2019 | Aug. 04, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 417,400 | $ 347,734 | $ 782,162 | $ 644,056 |
Cost of goods sold | 271,229 | 225,982 | 516,006 | 425,066 |
Gross profit | 146,171 | 121,752 | 266,156 | 218,990 |
Selling, general and administrative expenses | 110,142 | 91,330 | 205,658 | 163,862 |
Operating income | 36,029 | 30,422 | 60,498 | 55,128 |
Interest income, net | 1,512 | 983 | 3,199 | 2,062 |
Income before income taxes | 37,541 | 31,405 | 63,697 | 57,190 |
Income tax expense | 8,710 | 6,342 | 9,204 | 10,323 |
Net income | $ 28,831 | $ 25,063 | $ 54,493 | $ 46,867 |
Basic (loss) income per common share (dollars per share) | $ 0.52 | $ 0.45 | $ 0.97 | $ 0.84 |
Diluted (loss) income per common share (dollars per share) | $ 0.51 | $ 0.45 | $ 0.97 | $ 0.84 |
Weighted average shares outstanding: | ||||
Basic shares | 55,950,733 | 55,730,621 | 55,930,313 | 55,671,729 |
Diluted shares | 56,294,109 | 56,191,984 | 56,286,632 | 56,110,361 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings |
Cumulative effect on retained earnings, net of tax | $ 486 | $ 486 | ||
Balance at Feb. 03, 2018 | $ 458,558 | $ 554 | $ 346,300 | 111,704 |
Balance, common stock, shares at Feb. 03, 2018 | 55,438,089,000 | |||
Share-based compensation expense | 2,692,000 | 2,692,000 | ||
Issuance of unrestricted stock awards (in shares) | 876,000 | |||
Issuance of unrestricted stock awards | $ 62 | $ 62 | ||
Exercise of options to purchase common stock (in shares) | 39,237,000 | |||
Exercise of options to purchase common stock | $ 1,222 | 1,222 | ||
Vesting of restricted and performance-based stock units (in shares) | 243,745,000 | |||
Vesting of restricted stock units and performance-based restricted stock units | 2,000 | 2,000 | ||
Common shares withheld for taxes (in shares) | (101,928,000) | |||
Common shares withheld for taxes | $ (6,908) | $ 1 | (6,907) | |
Net income | 21,804 | 21,804 | ||
Balance at May. 05, 2018 | 477,918 | $ 555 | 343,369 | 133,994 |
Balance, common stock, shares at May. 05, 2018 | 55,620,019,000 | |||
Balance at Feb. 03, 2018 | 458,558 | $ 554 | 346,300 | 111,704 |
Balance, common stock, shares at Feb. 03, 2018 | 55,438,089,000 | |||
Repurchase and retirement of common stock | (7,600) | |||
Net income | 46,867 | |||
Balance at Aug. 04, 2018 | $ 507,958 | $ 557 | 348,344 | 159,057 |
Balance, common stock, shares at Aug. 04, 2018 | 55,723,267 | 55,723,267,000 | ||
Balance at Feb. 03, 2018 | $ 458,558 | $ 554 | 346,300 | 111,704 |
Balance, common stock, shares at Feb. 03, 2018 | 55,438,089,000 | |||
Repurchase and retirement of common stock (in shares) | (21,810) | |||
Repurchase and retirement of common stock | $ (2,000) | |||
Balance at Feb. 02, 2019 | $ 615,094 | $ 557 | 352,702 | 261,835 |
Balance, common stock, shares at Feb. 02, 2019 | 55,759,048 | 55,759,048 | ||
Balance at May. 05, 2018 | $ 477,918 | $ 555 | $ 343,369 | 133,994 |
Balance, common stock, shares at May. 05, 2018 | 55,620,019,000 | |||
Share-based compensation expense | 3,360,000 | 3,360,000 | ||
Issuance of unrestricted stock awards (in shares) | 449,000 | |||
Issuance of unrestricted stock awards | $ 28 | $ 28 | ||
Exercise of options to purchase common stock (in shares) | 70,030,000 | |||
Exercise of options to purchase common stock | $ 2,142 | $ 1 | 2,141 | |
Vesting of restricted and performance-based stock units (in shares) | 39,359,000 | |||
Vesting of restricted stock units and performance-based restricted stock units | 1,000 | 1,000 | ||
Common shares withheld for taxes (in shares) | (8,223,000) | |||
Common shares withheld for taxes | $ (722) | (722) | ||
Issuance of common stock to employees under employee stock purchase plan (in shares) | 1,633,000 | |||
Issuance of common stock to employees under employee stock purchase plan | 168 | $ 168 | ||
Net income | 25,063 | 25,063 | ||
Balance at Aug. 04, 2018 | $ 507,958 | $ 557 | 348,344 | 159,057 |
Balance, common stock, shares at Aug. 04, 2018 | 55,723,267 | 55,723,267,000 | ||
Balance at Feb. 02, 2019 | $ 615,094 | $ 557 | $ 352,702 | $ 261,835 |
Balance, common stock, shares at Feb. 02, 2019 | 55,759,048 | 55,759,048 | ||
Share-based compensation expense | 2,822,000 | 0 | 2,822,000 | 0 |
Issuance of unrestricted stock awards (in shares) | 307 | |||
Issuance of unrestricted stock awards | $ 45 | $ 0 | $ 45 | $ 0 |
Exercise of options to purchase common stock (in shares) | 72,365 | |||
Exercise of options to purchase common stock | $ 2,247 | $ 1 | 2,246 | 0 |
Vesting of restricted and performance-based stock units (in shares) | 203,429 | |||
Vesting of restricted stock units and performance-based restricted stock units | 2,000 | 2,000 | ||
Common shares withheld for taxes (in shares) | (79,256) | |||
Common shares withheld for taxes | $ (9,873) | $ 1 | (9,872) | |
Net income | 25,662 | 25,662 | ||
Balance at May. 04, 2019 | 635,999 | $ 559 | 347,943 | 287,497 |
Balance, common stock, shares at May. 04, 2019 | 55,955,893 | |||
Balance at Feb. 02, 2019 | $ 615,094 | $ 557 | 352,702 | 261,835 |
Balance, common stock, shares at Feb. 02, 2019 | 55,759,048 | 55,759,048 | ||
Exercise of options to purchase common stock (in shares) | 97,053 | |||
Repurchase and retirement of common stock | (10,100) | |||
Net income | $ 54,493 | |||
Balance at Aug. 03, 2019 | $ 651,936 | $ 558 | 335,050 | 316,328 |
Balance, common stock, shares at Aug. 03, 2019 | 55,851,643 | 55,851,643 | ||
Balance at May. 04, 2019 | $ 635,999 | $ 559 | $ 347,943 | $ 287,497 |
Balance, common stock, shares at May. 04, 2019 | 55,955,893 | |||
Share-based compensation expense | 3,055,000 | 3,055,000 | 0 | |
Issuance of unrestricted stock awards (in shares) | 411 | |||
Issuance of unrestricted stock awards | $ 45 | $ 0 | $ 45 | $ 0 |
Exercise of options to purchase common stock (in shares) | 24,688 | |||
Exercise of options to purchase common stock | $ 685 | $ 0 | 685 | 0 |
Vesting of restricted and performance-based stock units (in shares) | 17,099 | |||
Vesting of restricted stock units and performance-based restricted stock units | 0 | 0 | ||
Common shares withheld for taxes (in shares) | (2,110) | |||
Common shares withheld for taxes | $ (275) | $ 0 | (275) | |
Repurchase and retirement of common stock (in shares) | (146,185) | (146,185) | ||
Repurchase and retirement of common stock | $ (16,599) | $ (1) | (16,598) | |
Issuance of common stock to employees under employee stock purchase plan (in shares) | 1,847 | |||
Issuance of common stock to employees under employee stock purchase plan | 195 | $ 195 | ||
Net income | 28,831 | 28,831 | ||
Balance at Aug. 03, 2019 | $ 651,936 | $ 558 | $ 335,050 | $ 316,328 |
Balance, common stock, shares at Aug. 03, 2019 | 55,851,643 | 55,851,643 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 03, 2019 | Aug. 04, 2018 | |
Statement of Cash Flows [Abstract] | ||
Proceeds from Stock Options Exercised | $ 195 | $ 168 |
Operating activities: | ||
Net income | 54,493 | 46,867 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 25,459 | 19,367 |
Share-based compensation expense | 5,986 | 6,157 |
Deferred income tax expense | 3,202 | 2,727 |
Other non-cash expenses | (58) | 43 |
Changes in operating assets and liabilities: | ||
Inventories | (29,053) | (41,072) |
Prepaid income taxes | (9,516) | (5,094) |
Prepaid expenses and other assets | 6,442 | (4,844) |
Accounts payable | 6,502 | 35,424 |
Income taxes payable | (20,033) | (24,868) |
Accrued salaries and wages | (10,368) | (9,397) |
Deferred rent | (92,382) | 7,013 |
Increase (Decrease) in Operating Liabilities | 90,803 | 0 |
Other accrued expenses | 15,567 | 12,066 |
Net cash provided by operating activities | 47,044 | 44,389 |
Investing activities: | ||
Purchases of investment securities | (95,753) | (59,569) |
Sales, maturities, and redemptions of investment securities | 89,797 | 86,384 |
Capital expenditures | (100,139) | (46,522) |
Net cash used in investing activities | (106,095) | (19,707) |
Financing activities: | ||
Proceeds from exercise of options to purchase common stock and vesting of restricted and performance-based restricted stock units | 2,934 | 3,367 |
Payments for Repurchase of Equity | 10,148 | 7,630 |
Common shares withheld for taxes | (6,878) | 0 |
Net cash used in financing activities | (13,897) | (4,095) |
Net (decrease) increase in cash and cash equivalents | (72,948) | 20,587 |
Cash and cash equivalents at beginning of period | 251,748 | 112,669 |
Cash and cash equivalents at end of period | 178,800 | 133,256 |
Supplemental disclosures of cash flow information: | ||
(Decrease) increase in accrued purchases of property and equipment | $ (38,842) | $ (6,056) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Aug. 03, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies (a) Description of Business Five Below, Inc. (collectively referred to herein with its wholly owned subsidiary as the "Company") is a specialty value retailer offering merchandise targeted at the tween and teen demographic. The Company offers an edited assortment of products priced at $5 and below. 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 August 3, 2019 , operated in 36 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, California, Arkansas, Iowa, Nebraska, and Arizona. As of August 3, 2019 and August 4, 2018 , the Company operated 833 stores and 692 (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 2019" or "fiscal 2019" refer to the period from February 3, 2019 to February 1, 2020, which is a 52-week fiscal year. References to "fiscal year 2018" or "fiscal 2018" refer to the period from February 4, 2018 to February 2, 2019, which is a 52-week fiscal year. The fiscal quarters ended August 3, 2019 and August 4, 2018 refer to the thirteen weeks ended as of those dates. The year-to-date periods ended August 3, 2019 and August 4, 2018 refer to the twenty-six weeks ended as of those dates. (c) Basis of Presentation The consolidated balance sheets as of August 3, 2019 and August 4, 2018 , the consolidated statements of operations for the thirteen and twenty-six weeks ended August 3, 2019 and August 4, 2018 , the consolidated statements of shareholders’ equity for the thirteen and twenty-six weeks ended August 3, 2019 and August 4, 2018 and the consolidated statements of cash flows for the twenty-six weeks ended August 3, 2019 and August 4, 2018 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 August 3, 2019 and August 4, 2018 . The balance sheet as of February 2, 2019 , presented herein, has been derived from the audited balance sheet included in the Company's Annual Report on Form 10-K for fiscal 2018 as filed with the Securities and Exchange Commission on March 28, 2019 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 February 2, 2019 and footnotes thereto included in the Annual Report. The consolidated results of operations for the thirteen and twenty-six weeks ended August 3, 2019 and August 4, 2018 are not necessarily indicative of the consolidated operating results for the year ending February 1, 2020 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 (Topic 606)." ASU 2014-09 clarifies the principles for recognizing revenue from contracts with customers and 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. On February 4, 2018, the Company adopted the pronouncement using the modified retrospective method by recognizing the cumulative effect of gift card breakage as an adjustment to retained earnings resulting in a $0.5 million increase to retained earnings. In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 requires lessees to record assets and liabilities on the balance sheet for all leases with terms longer than 12 months. The updated guidance is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. On February 3, 2019, the Company adopted this pronouncement on a modified retrospective basis and applied the new standard to all leases. As a result, comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which includes, among other things, the ability to carry forward the existing lease classification. We also elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements on existing agreements. At adoption, the new standard had a material impact on the Company's balance sheets resulting in an increase in net assets and liabilities of approximately $618 million , as the Company has a significant number of leases for its stores. Although the standard impacts the treatment of certain initial direct leases costs that were previously capitalizable, it did not materially impact the Company's consolidated statements of operations and had no impact on the Company's cash flows. The following is a discussion of the Company’s lease policy under the new lease accounting standard: The Company determines if an arrangement contains a lease at the inception of a contract. Operating lease assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease assets and operating lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments. As the interest rate implicit in the Company’s leases is not readily determinable, the Company discounts the lease liability utilizing its estimated incremental borrowing rate, on a collateralized basis over a similar term, that the Company would have incurred to borrow the funds necessary to purchase the leased asset. The operating lease assets also include lease payments made before commencement and exclude lease incentives. The Company’s real estate leases typically contain options that permit renewals for additional periods of up to five years each. For real estate leases, except for renewals that generally take the lease to a ten-year term, the options to renew are not considered reasonably certain at lease commencement because the Company reevaluates each lease on a regular basis to consider the economic and strategic incentives of exercising the renewal options, and regularly opens, relocates or closes stores to align with its operating strategy. Generally, except for renewals that generally take the lease to a ten-year term, the renewal option periods are not included within the lease term and the associated payments are not included in the measurement of the operating lease asset and operating lease liability as the exercise of such options is not reasonably certain. Similarly, renewal options are not included in the lease term for non-real estate leases because they are not considered reasonably certain of being exercised at lease commencement. Leases with an initial term of 12 months or less are not recorded on the balance sheets and lease expense is recognized on a straight-line basis over the term of the short-term lease. For certain real estate leases, the Company accounts for lease components and nonlease components as a single lease component. Certain real estate leases require additional payments based on sales volume, as well as reimbursement for real estate taxes, common area maintenance and insurance, which are expensed as incurred as variable lease costs. Other real estate leases contain one fixed lease payment that includes real estate taxes, common area maintenance and insurance. These fixed payments are considered part of the lease payment and included in the operating lease assets and operating lease liabilities. See Note 3 ‘‘Leases’’ for additional information. Impact of New Lease Standard on Balance Sheet Line Items As a result of applying the new lease standard using the modified retrospective method, the following adjustments were made to accounts on the consolidated balance sheet as of February 3, 2019 (in thousands): Impact of ASC 842 Adoption As Reported February 2, 2019 Adjustments Adjusted February 3, 2019 Assets Current assets: Prepaid expenses and other current assets 60,124 (11,077 ) 49,047 Total current assets 642,257 (11,077 ) 631,180 Operating lease assets — 628,924 628,924 $ 952,264 $ 617,847 $ 1,570,111 Liabilities and Shareholders’ Equity Current liabilities: Other accrued expenses 104,201 (8,033 ) 96,168 Total current liabilities 253,105 (8,033 ) 245,072 Deferred rent and other 84,065 (84,065 ) — Long-term operating lease liabilities — 709,945 709,945 Total liabilities 337,170 617,847 955,017 Shareholders’ equity: Total shareholders’ equity 615,094 — 615,094 $ 952,264 $ 617,847 $ 1,570,111 In August 2018, the FASB issued ASU 2018-15, "Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract." ASU 2018-15 requires implementation costs incurred by customers in cloud computing arrangements to be deferred over the noncancelable term of the cloud computing arrangements plus any optional renewal periods (1) that are reasonably certain to be exercised by the customer or (2) for which exercise of the renewal option is controlled by the cloud service provider. The effective date of this pronouncement is for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, and early adoption is permitted. The standard can be adopted either using the prospective or retrospective transition approach. During the thirteen weeks ended November 3, 2018, the Company adopted the pronouncement using the prospective transition method and it did not have a significant impact to the Company's financial statements. (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, share-based compensation expense and the incremental borrowing rate utilized in operating lease liabilities. (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 municipal 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 August 3, 2019 , February 2, 2019 , and August 4, 2018 , the Company had cash equivalents of $167.9 million , $215.7 million and $63.9 million , respectively. The Company’s cash equivalents consist of credit and debit card receivables, money market funds, and corporate bonds with original maturities of 90 days or less. Fair value for cash equivalents was determined based on level 1 inputs. As of August 3, 2019 , February 2, 2019 , and August 4, 2018 , the Company's short-term and long-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 August 3, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 89,018 $ 7 $ — $ 89,025 Municipal bonds 1,307 1 — 1,308 Total $ 90,325 $ 8 $ — $ 90,333 Long-term: Corporate bonds $ 1,043 $ — $ — $ 1,043 Total $ 1,043 $ — $ — $ 1,043 As of February 2, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 83,128 $ — $ 63 $ 83,065 Municipal bonds 2,284 — 2 2,282 Total $ 85,412 $ — $ 65 $ 85,347 As of August 4, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 125,027 $ — $ 222 $ 124,805 Municipal bonds 6,414 — 5 6,409 Total $ 131,441 $ — $ 227 $ 131,214 Long-term: Corporate bonds $ 1,404 $ — $ — $ 1,404 Total $ 1,404 $ — $ — $ 1,404 Short-term investment securities as of August 3, 2019 , February 2, 2019 , and August 4, 2018 all mature in one year or less. Long-term investment securities as of August 3, 2019 and August 4, 2018 all mature after one year but in less than three years. (g) Prepaid Expenses and Other Current Assets Prepaid expenses as of August 3, 2019 , February 2, 2019 , and August 4, 2018 were $19.6 million , $26.1 million , and $32.7 million , respectively. Other current assets as of August 3, 2019 , February 2, 2019 , and August 4, 2018 were $32.8 million , $34.0 million , and $17.5 million (h) Other Accrued Expenses Other accrued expenses include accrued capital expenditures of $16.8 million , $54.2 million , and $15.6 million as of August 3, 2019 , February 2, 2019 , and August 4, 2018 , respectively. |
Revenue Contracts With Customer
Revenue Contracts With Customers | 6 Months Ended |
Aug. 03, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." ASU 2014-09 clarifies the principles for recognizing revenue from contracts with customers. The Company adopted the standard during the thirteen weeks ended May 5, 2018 using the modified retrospective method by recognizing the cumulative effect as an adjustment to retained earnings. Revenue Transactions Revenue from store operations is recognized at the point of sale when control of the product is transferred to the customer at such time. Internet sales, through the Company's fivebelow.com e-commerce website, are recognized when the consumer receives the product as control transfers upon delivery. Returns subsequent to the period end are immaterial; accordingly, no reserve has been recorded. Gift card sales to customers are initially recorded as liabilities and recognized as sales upon redemption for merchandise or as breakage revenue in proportion to the pattern of redemption of the gift cards by the customer in net sales. The transaction price for the Company’s sales is based on the item’s stated price. To the extent that the Company charges customers for shipping and handling on e-commerce sales, the Company records such amounts in net sales. Shipping and handling costs, which include fulfillment and shipping costs related to the Company's e-commerce operations, are included in costs of goods sold. The Company has chosen the pronouncement's policy election which allows it to exclude all sales taxes from net sales in the accompanying consolidated statements of operations. Disaggregation of Revenue The following table provides information about disaggregated revenue by groups of products: leisure, fashion and home, and party and snack (in thousands): Thirteen Weeks Ended Thirteen Weeks Ended August 3, 2019 August 4, 2018 Amount Percentage of Net Sales Amount Percentage of Net Sales Leisure $ 220,703 52.9 % $ 187,279 53.9 % Fashion and home 122,105 29.3 % 100,255 28.8 % Party and snack 74,592 17.8 % 60,200 17.3 % Total $ 417,400 100.0 % $ 347,734 100.0 % Twenty-Six Weeks Ended Twenty-Six Weeks Ended August 3, 2019 August 4, 2018 Amount Percentage of Net Sales Amount Percentage of Net Sales Leisure $ 399,023 51.0 % $ 332,011 51.5 % Fashion and home 231,953 29.7 % 191,838 29.8 % Party and snack 151,186 19.3 % 120,207 18.7 % Total $ 782,162 100.0 % $ 644,056 100.0 % Financial Statement Impact of Adopting ASU 2014-09 All of the Company's revenue is recognized from contracts with customers and, therefore, is subject to ASU 2014-09. The Company adopted ASU 2014-09 using a modified retrospective approach during the thirteen weeks ended May 5, 2018 and recognized the cumulative effect as an adjustment by increasing retained earnings by $0.5 million and income taxes payable by $0.1 million , and reducing accrued expenses by $0.7 million and deferred tax asset by $0.1 million |
Leases
Leases | 6 Months Ended |
Aug. 03, 2019 | |
Leases [Abstract] | |
Leases | (3) Leases The Company leases property and equipment under noncancelable 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 payments 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 renewals, which are generally those that take the lease to a ten-year term, expire through fiscal 2033. During the thirteen weeks ended August 3, 2019 , the Company committed to 32 new store leases with terms of 10 to 15 years that have future minimum lease payments of approximately $52.1 million . All of the Company's leases are classified as operating leases and the associated assets and liabilities are presented as separate captions in the consolidated balance sheets. As of August 3, 2019 , the weighted average remaining lease term for the Company's operating leases is 7.6 years, and the weighted average discount rate is 7.4% . For the twenty-six weeks ended August 3, 2019 , cash paid for amounts included in the measurement of operating lease liabilities of $62.0 million was reflected in cash flows from operating activities in the consolidated statements of cash flows. The following table is a summary of the Company's components for net lease costs as of August 3, 2019 (in thousands): August 3, 2019 Lease Cost Thirteen Weeks Ended Twenty-Six Weeks Ended Operating lease cost $ 35,319 $ 69,031 Variable lease cost 9,922 19,212 Net lease cost* $ 45,241 $ 88,243 * Excludes short-term lease cost, which is immaterial The following table summarizes the maturity of lease liabilities under operating leases as of August 3, 2019 (in thousands): Maturity of Lease Liabilities Operating Leases 2019 $ 75,373 2020 150,558 2021 145,284 2022 135,842 2023 125,697 After 2023 422,200 Total lease payments 1,054,954 Less: imputed interest 254,826 Present value of lease liabilities $ 800,128 |
Income Per Common Share
Income Per Common Share | 6 Months Ended |
Aug. 03, 2019 | |
Earnings Per Share [Abstract] | |
Income Per Common Share | (4) 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 exercised stock options as well as assumed vesting of 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 Twenty-Six Weeks Ended August 3, 2019 August 4, 2018 August 3, 2019 August 4, 2018 Numerator: Net income $ 28,831 $ 25,063 $ 54,493 $ 46,867 Denominator: Weighted average common shares outstanding - basic 55,950,733 55,730,621 55,930,313 55,671,729 Dilutive impact of options, restricted stock units and employee stock purchase plan 343,376 461,363 356,319 438,632 Weighted average common shares outstanding - diluted 56,294,109 56,191,984 56,286,632 56,110,361 Per common share: Basic income per common share $ 0.52 $ 0.45 $ 0.97 $ 0.84 Diluted income per common share $ 0.51 $ 0.45 $ 0.97 $ 0.84 The effects of the assumed vesting of restricted stock units for 4,592 and 2,296 shares of common stock for the thirteen weeks ended and twenty-six weeks ended August 4, 2018 , respectively, were excluded from the calculation of diluted net income per share, as their impact would have been anti-dilutive. |
Line of Credit
Line of Credit | 6 Months Ended |
Aug. 03, 2019 | |
Debt Disclosure [Abstract] | |
Line of Credit | (5) 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, 1616 Holdings, Inc. (formerly known as Five Below Merchandising, Inc.), a wholly-owned subsidiary of the Company, 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, 1616 Holdings, 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 1616 Holdings, Inc. and are secured by substantially all of the assets of the Company and 1616 Holdings, Inc. As of August 3, 2019 , the Company had no borrowings under the Amended Revolving Credit Facility and had approximately $20.0 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 August 3, 2019 and August 4, 2018 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Aug. 03, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (6) Commitments and Contingencies Commitments Other contractual commitments As of August 3, 2019 , the Company has other purchase commitments of approximately $3.4 million consisting of purchase agreements for materials that will be used in the construction of new stores. During the thirteen weeks ended May 4, 2019, the Company completed the purchase of an approximately 700,000 square foot build-to-suit distribution center in Forsyth, Georgia for approximately $42 million , for land and building, to support the Company's anticipated growth. During the thirteen weeks ended August 3, 2019 , the Company signed a purchase agreement to acquire land and a construction agreement to build a distribution center located in Conroe, Texas, which the Company expects will be approximately 860,000 square feet, for approximately $47 million , for land and building, to support the Company’s anticipated growth. Subsequent to the thirteen weeks ended August 3, 2019 , the Company closed on the land purchase. The Company expects to occupy the distribution center in Conroe, Texas in 2020. Contingencies Legal Matters |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Aug. 03, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | (7) 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 7.6 million shares under the Plan. As of August 3, 2019 , approximately 3.3 million 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 Company’s board of directors. Options granted to date generally vest over four years from the date of grant. Stock option activity during the twenty-six weeks ended August 3, 2019 was as follows: Options Weighted Weighted Balance as of February 2, 2019 374,257 $ 30.23 5.1 Forfeited (862 ) 39.39 Exercised (97,053 ) 30.21 Balance as of August 3, 2019 276,342 30.21 4.5 Exercisable as of August 3, 2019 264,785 $ 29.98 4.4 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 granted during the twenty-six weeks ended August 3, 2019 . 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. RSUs granted to date have vesting periods ranging from less than one year to five years from the date of grant. PSUs 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 twenty-six weeks ended August 3, 2019 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 February 2, 2019 292,888 $ 53.52 416,200 $ 47.38 Granted 82,586 119.10 83,363 116.94 Vested (103,391 ) 43.60 (117,137 ) 39.21 Forfeited (10,558 ) 66.43 (27,836 ) 45.23 Non-vested balance as of August 3, 2019 261,525 $ 77.63 354,590 $ 66.60 In connection with the vesting of RSUs and PSUs during the twenty-six weeks ended August 3, 2019 , the Company withheld 81,366 shares with an aggregate value of $10.1 million in satisfaction of minimum tax withholding obligations due upon vesting. In connection with the vesting of RSUs and PSUs during the twenty-six weeks ended August 4, 2018 , the Company withheld 110,151 shares with an aggregate value of $7.6 million in satisfaction of minimum tax withholding obligations due upon vesting. As of August 3, 2019 , there was $25.6 million of total unrecognized compensation costs related to non-vested share-based compensation arrangements (including stock options, RSUs and PSUs) granted under the Plan. The cost is expected to be recognized over a weighted average vesting period of 2.5 years . |
Share-Based Compensation Share
Share-Based Compensation Share Repurchase Program (Notes) | 6 Months Ended |
Aug. 03, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Treasury Stock [Text Block] | Share Repurchase Program On March 20, 2018, the Company's board of directors approved a share repurchase program authorizing the repurchase of up to $100 million of our common stock through March 31, 2021, on the open market, in privately negotiated transactions, or otherwise. In December 2018, the Company purchased 21,810 shares under this program at an aggregate cost of approximately $2.0 million, or an average price of $91.07 per share. During the thirteen weeks ended August 3, 2019 , the Company purchased 146,185 shares under this program at an aggregate cost of approximately $16.6 million , or an average price of $113.55 per share. Subsequent to the thirteen weeks ended August 3, 2019 , the Company purchased 191,367 shares under this program at an aggregate cost of approximately $20.3 million, or an average price of $106.00 |
Income Taxes
Income Taxes | 6 Months Ended |
Aug. 03, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (8) Income Taxes The following table summarizes the Company’s income tax expense and effective tax rates for the thirteen and twenty-six weeks ended August 3, 2019 and August 4, 2018 (dollars in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended August 3, 2019 August 4, 2018 August 3, 2019 August 4, 2018 Income before income taxes $ 37,541 $ 31,405 $ 63,697 $ 57,190 Income tax expense $ 8,710 $ 6,342 $ 9,204 $ 10,323 Effective tax rate 23.2 % 20.2 % 14.4 % 18.1 % The effective tax rates for the thirteen and twenty-six weeks ended August 3, 2019 and August 4, 2018 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 weeks ended August 3, 2019 was higher than the thirteen weeks ended August 4, 2018 primarily due to discrete items, which includes the impact 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 effective tax rate for the twenty-six weeks ended August 3, 2019 was lower than the twenty-six weeks ended August 4, 2018 primarily due to discrete items, which includes the impact of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting." The Company had no material accrual for uncertain tax positions or interest and/or penalties related to income taxes on the Company’s balance sheets as of August 3, 2019 , February 2, 2019 , or August 4, 2018 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 twenty-six weeks ended August 3, 2019 or August 4, 2018 . 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 January 30, 2015 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 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Aug. 03, 2019 | |
Accounting Policies [Abstract] | |
Nature of Business | (a) Description of Business Five Below, Inc. (collectively referred to herein with its wholly owned subsidiary as the "Company") is a specialty value retailer offering merchandise targeted at the tween and teen demographic. The Company offers an edited assortment of products priced at $5 and below. 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 August 3, 2019 , operated in 36 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, California, Arkansas, Iowa, Nebraska, and Arizona. As of August 3, 2019 and August 4, 2018 , the Company operated 833 stores and 692 |
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 2019" or "fiscal 2019" refer to the period from February 3, 2019 to February 1, 2020, which is a 52-week fiscal year. References to "fiscal year 2018" or "fiscal 2018" refer to the period from February 4, 2018 to February 2, 2019, which is a 52-week fiscal year. The fiscal quarters ended August 3, 2019 and August 4, 2018 refer to the thirteen weeks ended as of those dates. The year-to-date periods ended August 3, 2019 and August 4, 2018 refer to the twenty-six weeks ended as of those dates. |
Basis of Presentation | (c) Basis of Presentation The consolidated balance sheets as of August 3, 2019 and August 4, 2018 , the consolidated statements of operations for the thirteen and twenty-six weeks ended August 3, 2019 and August 4, 2018 , the consolidated statements of shareholders’ equity for the thirteen and twenty-six weeks ended August 3, 2019 and August 4, 2018 and the consolidated statements of cash flows for the twenty-six weeks ended August 3, 2019 and August 4, 2018 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 August 3, 2019 and August 4, 2018 . The balance sheet as of February 2, 2019 , presented herein, has been derived from the audited balance sheet included in the Company's Annual Report on Form 10-K for fiscal 2018 as filed with the Securities and Exchange Commission on March 28, 2019 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 February 2, 2019 and footnotes thereto included in the Annual Report. The consolidated results of operations for the thirteen and twenty-six weeks ended August 3, 2019 and August 4, 2018 are not necessarily indicative of the consolidated operating results for the year ending February 1, 2020 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. |
Recently Issued Accounting Pronouncements | (d) Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." ASU 2014-09 clarifies the principles for recognizing revenue from contracts with customers and 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. On February 4, 2018, the Company adopted the pronouncement using the modified retrospective method by recognizing the cumulative effect of gift card breakage as an adjustment to retained earnings resulting in a $0.5 million increase to retained earnings. In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 requires lessees to record assets and liabilities on the balance sheet for all leases with terms longer than 12 months. The updated guidance is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. On February 3, 2019, the Company adopted this pronouncement on a modified retrospective basis and applied the new standard to all leases. As a result, comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which includes, among other things, the ability to carry forward the existing lease classification. We also elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements on existing agreements. At adoption, the new standard had a material impact on the Company's balance sheets resulting in an increase in net assets and liabilities of approximately $618 million , as the Company has a significant number of leases for its stores. Although the standard impacts the treatment of certain initial direct leases costs that were previously capitalizable, it did not materially impact the Company's consolidated statements of operations and had no impact on the Company's cash flows. The following is a discussion of the Company’s lease policy under the new lease accounting standard: The Company determines if an arrangement contains a lease at the inception of a contract. Operating lease assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease assets and operating lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments. As the interest rate implicit in the Company’s leases is not readily determinable, the Company discounts the lease liability utilizing its estimated incremental borrowing rate, on a collateralized basis over a similar term, that the Company would have incurred to borrow the funds necessary to purchase the leased asset. The operating lease assets also include lease payments made before commencement and exclude lease incentives. The Company’s real estate leases typically contain options that permit renewals for additional periods of up to five years each. For real estate leases, except for renewals that generally take the lease to a ten-year term, the options to renew are not considered reasonably certain at lease commencement because the Company reevaluates each lease on a regular basis to consider the economic and strategic incentives of exercising the renewal options, and regularly opens, relocates or closes stores to align with its operating strategy. Generally, except for renewals that generally take the lease to a ten-year term, the renewal option periods are not included within the lease term and the associated payments are not included in the measurement of the operating lease asset and operating lease liability as the exercise of such options is not reasonably certain. Similarly, renewal options are not included in the lease term for non-real estate leases because they are not considered reasonably certain of being exercised at lease commencement. Leases with an initial term of 12 months or less are not recorded on the balance sheets and lease expense is recognized on a straight-line basis over the term of the short-term lease. For certain real estate leases, the Company accounts for lease components and nonlease components as a single lease component. Certain real estate leases require additional payments based on sales volume, as well as reimbursement for real estate taxes, common area maintenance and insurance, which are expensed as incurred as variable lease costs. Other real estate leases contain one fixed lease payment that includes real estate taxes, common area maintenance and insurance. These fixed payments are considered part of the lease payment and included in the operating lease assets and operating lease liabilities. See Note 3 ‘‘Leases’’ for additional information. Impact of New Lease Standard on Balance Sheet Line Items As a result of applying the new lease standard using the modified retrospective method, the following adjustments were made to accounts on the consolidated balance sheet as of February 3, 2019 (in thousands): Impact of ASC 842 Adoption As Reported February 2, 2019 Adjustments Adjusted February 3, 2019 Assets Current assets: Prepaid expenses and other current assets 60,124 (11,077 ) 49,047 Total current assets 642,257 (11,077 ) 631,180 Operating lease assets — 628,924 628,924 $ 952,264 $ 617,847 $ 1,570,111 Liabilities and Shareholders’ Equity Current liabilities: Other accrued expenses 104,201 (8,033 ) 96,168 Total current liabilities 253,105 (8,033 ) 245,072 Deferred rent and other 84,065 (84,065 ) — Long-term operating lease liabilities — 709,945 709,945 Total liabilities 337,170 617,847 955,017 Shareholders’ equity: Total shareholders’ equity 615,094 — 615,094 $ 952,264 $ 617,847 $ 1,570,111 In August 2018, the FASB issued ASU 2018-15, "Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract." ASU 2018-15 requires implementation costs incurred by customers in cloud computing arrangements to be deferred over the noncancelable term of the cloud computing arrangements plus any optional renewal periods (1) that are reasonably certain to be exercised by the customer or (2) for which exercise of the renewal option is controlled by the cloud service provider. The effective date of this pronouncement is for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, and early adoption is permitted. The standard can be adopted either using the prospective or retrospective transition approach. During the thirteen weeks ended November 3, 2018, the Company adopted the pronouncement using the prospective transition method and it did not have a significant impact to the Company's financial statements. |
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, share-based compensation expense and the incremental borrowing rate utilized in operating lease liabilities. |
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 municipal 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 August 3, 2019 , February 2, 2019 , and August 4, 2018 , the Company had cash equivalents of $167.9 million , $215.7 million and $63.9 million , respectively. The Company’s cash equivalents consist of credit and debit card receivables, money market funds, and corporate bonds with original maturities of 90 days or less. Fair value for cash equivalents was determined based on level 1 inputs. As of August 3, 2019 , February 2, 2019 , and August 4, 2018 , the Company's short-term and long-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 August 3, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 89,018 $ 7 $ — $ 89,025 Municipal bonds 1,307 1 — 1,308 Total $ 90,325 $ 8 $ — $ 90,333 Long-term: Corporate bonds $ 1,043 $ — $ — $ 1,043 Total $ 1,043 $ — $ — $ 1,043 As of February 2, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 83,128 $ — $ 63 $ 83,065 Municipal bonds 2,284 — 2 2,282 Total $ 85,412 $ — $ 65 $ 85,347 As of August 4, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 125,027 $ — $ 222 $ 124,805 Municipal bonds 6,414 — 5 6,409 Total $ 131,441 $ — $ 227 $ 131,214 Long-term: Corporate bonds $ 1,404 $ — $ — $ 1,404 Total $ 1,404 $ — $ — $ 1,404 Short-term investment securities as of August 3, 2019 , February 2, 2019 , and August 4, 2018 all mature in one year or less. Long-term investment securities as of August 3, 2019 and August 4, 2018 all mature after one year but in less than three years. |
Prepaid Expenses and Other Current Assets | (g) Prepaid Expenses and Other Current Assets Prepaid expenses as of August 3, 2019 , February 2, 2019 , and August 4, 2018 were $19.6 million , $26.1 million , and $32.7 million , respectively. Other current assets as of August 3, 2019 , February 2, 2019 , and August 4, 2018 were $32.8 million , $34.0 million , and $17.5 million |
Other Accrued Expenses | (h) Other Accrued Expenses Other accrued expenses include accrued capital expenditures of $16.8 million , $54.2 million , and $15.6 million as of August 3, 2019 , February 2, 2019 , and August 4, 2018 , respectively. |
Revenue Contracts With Custom_2
Revenue Contracts With Customers (Policies) | 6 Months Ended |
Aug. 03, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | (2) Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." ASU 2014-09 clarifies the principles for recognizing revenue from contracts with customers. The Company adopted the standard during the thirteen weeks ended May 5, 2018 using the modified retrospective method by recognizing the cumulative effect as an adjustment to retained earnings. Revenue Transactions Revenue from store operations is recognized at the point of sale when control of the product is transferred to the customer at such time. Internet sales, through the Company's fivebelow.com e-commerce website, are recognized when the consumer receives the product as control transfers upon delivery. Returns subsequent to the period end are immaterial; accordingly, no reserve has been recorded. Gift card sales to customers are initially recorded as liabilities and recognized as sales upon redemption for merchandise or as breakage revenue in proportion to the pattern of redemption of the gift cards by the customer in net sales. The transaction price for the Company’s sales is based on the item’s stated price. To the extent that the Company charges customers for shipping and handling on e-commerce sales, the Company records such amounts in net sales. Shipping and handling costs, which include fulfillment and shipping costs related to the Company's e-commerce operations, are included in costs of goods sold. The Company has chosen the pronouncement's policy election which allows it to exclude all sales taxes from net sales in the accompanying consolidated statements of operations. Disaggregation of Revenue The following table provides information about disaggregated revenue by groups of products: leisure, fashion and home, and party and snack (in thousands): Thirteen Weeks Ended Thirteen Weeks Ended August 3, 2019 August 4, 2018 Amount Percentage of Net Sales Amount Percentage of Net Sales Leisure $ 220,703 52.9 % $ 187,279 53.9 % Fashion and home 122,105 29.3 % 100,255 28.8 % Party and snack 74,592 17.8 % 60,200 17.3 % Total $ 417,400 100.0 % $ 347,734 100.0 % Twenty-Six Weeks Ended Twenty-Six Weeks Ended August 3, 2019 August 4, 2018 Amount Percentage of Net Sales Amount Percentage of Net Sales Leisure $ 399,023 51.0 % $ 332,011 51.5 % Fashion and home 231,953 29.7 % 191,838 29.8 % Party and snack 151,186 19.3 % 120,207 18.7 % Total $ 782,162 100.0 % $ 644,056 100.0 % Financial Statement Impact of Adopting ASU 2014-09 All of the Company's revenue is recognized from contracts with customers and, therefore, is subject to ASU 2014-09. The Company adopted ASU 2014-09 using a modified retrospective approach during the thirteen weeks ended May 5, 2018 and recognized the cumulative effect as an adjustment by increasing retained earnings by $0.5 million and income taxes payable by $0.1 million , and reducing accrued expenses by $0.7 million and deferred tax asset by $0.1 million |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Aug. 03, 2019 | |
Leases [Abstract] | |
New Accounting Pronouncement, Early Adoption | As a result of applying the new lease standard using the modified retrospective method, the following adjustments were made to accounts on the consolidated balance sheet as of February 3, 2019 (in thousands): Impact of ASC 842 Adoption As Reported February 2, 2019 Adjustments Adjusted February 3, 2019 Assets Current assets: Prepaid expenses and other current assets 60,124 (11,077 ) 49,047 Total current assets 642,257 (11,077 ) 631,180 Operating lease assets — 628,924 628,924 $ 952,264 $ 617,847 $ 1,570,111 Liabilities and Shareholders’ Equity Current liabilities: Other accrued expenses 104,201 (8,033 ) 96,168 Total current liabilities 253,105 (8,033 ) 245,072 Deferred rent and other 84,065 (84,065 ) — Long-term operating lease liabilities — 709,945 709,945 Total liabilities 337,170 617,847 955,017 Shareholders’ equity: Total shareholders’ equity 615,094 — 615,094 $ 952,264 $ 617,847 $ 1,570,111 |
Revenue Contracts With Custom_3
Revenue Contracts With Customers (Tables) | 6 Months Ended |
Aug. 03, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregation of Revenue The following table provides information about disaggregated revenue by groups of products: leisure, fashion and home, and party and snack (in thousands): Thirteen Weeks Ended Thirteen Weeks Ended August 3, 2019 August 4, 2018 Amount Percentage of Net Sales Amount Percentage of Net Sales Leisure $ 220,703 52.9 % $ 187,279 53.9 % Fashion and home 122,105 29.3 % 100,255 28.8 % Party and snack 74,592 17.8 % 60,200 17.3 % Total $ 417,400 100.0 % $ 347,734 100.0 % Twenty-Six Weeks Ended Twenty-Six Weeks Ended August 3, 2019 August 4, 2018 Amount Percentage of Net Sales Amount Percentage of Net Sales Leisure $ 399,023 51.0 % $ 332,011 51.5 % Fashion and home 231,953 29.7 % 191,838 29.8 % Party and snack 151,186 19.3 % 120,207 18.7 % Total $ 782,162 100.0 % $ 644,056 100.0 % |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Aug. 03, 2019 | |
Leases [Abstract] | |
Components of net lease cost | The following table is a summary of the Company's components for net lease costs as of August 3, 2019 (in thousands): August 3, 2019 Lease Cost Thirteen Weeks Ended Twenty-Six Weeks Ended Operating lease cost $ 35,319 $ 69,031 Variable lease cost 9,922 19,212 Net lease cost* $ 45,241 $ 88,243 * Excludes short-term lease cost, which is immaterial |
Maturity of lease liabilities under operating leases | The following table summarizes the maturity of lease liabilities under operating leases as of August 3, 2019 (in thousands): Maturity of Lease Liabilities Operating Leases 2019 $ 75,373 2020 150,558 2021 145,284 2022 135,842 2023 125,697 After 2023 422,200 Total lease payments 1,054,954 Less: imputed interest 254,826 Present value of lease liabilities $ 800,128 |
Income Per Common Share (Tables
Income Per Common Share (Tables) | 6 Months Ended |
Aug. 03, 2019 | |
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 Twenty-Six Weeks Ended August 3, 2019 August 4, 2018 August 3, 2019 August 4, 2018 Numerator: Net income $ 28,831 $ 25,063 $ 54,493 $ 46,867 Denominator: Weighted average common shares outstanding - basic 55,950,733 55,730,621 55,930,313 55,671,729 Dilutive impact of options, restricted stock units and employee stock purchase plan 343,376 461,363 356,319 438,632 Weighted average common shares outstanding - diluted 56,294,109 56,191,984 56,286,632 56,110,361 Per common share: Basic income per common share $ 0.52 $ 0.45 $ 0.97 $ 0.84 Diluted income per common share $ 0.51 $ 0.45 $ 0.97 $ 0.84 The effects of the assumed vesting of restricted stock units for 4,592 and 2,296 shares of common stock for the thirteen weeks ended and twenty-six weeks ended August 4, 2018 , respectively, were excluded from the calculation of diluted net income per share, as their impact would have been anti-dilutive. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Aug. 03, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | Stock option activity during the twenty-six weeks ended August 3, 2019 was as follows: Options Weighted Weighted Balance as of February 2, 2019 374,257 $ 30.23 5.1 Forfeited (862 ) 39.39 Exercised (97,053 ) 30.21 Balance as of August 3, 2019 276,342 30.21 4.5 Exercisable as of August 3, 2019 264,785 $ 29.98 4.4 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | RSU and PSU activity during the twenty-six weeks ended August 3, 2019 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 February 2, 2019 292,888 $ 53.52 416,200 $ 47.38 Granted 82,586 119.10 83,363 116.94 Vested (103,391 ) 43.60 (117,137 ) 39.21 Forfeited (10,558 ) 66.43 (27,836 ) 45.23 Non-vested balance as of August 3, 2019 261,525 $ 77.63 354,590 $ 66.60 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Aug. 03, 2019 | |
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 twenty-six weeks ended August 3, 2019 and August 4, 2018 (dollars in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended August 3, 2019 August 4, 2018 August 3, 2019 August 4, 2018 Income before income taxes $ 37,541 $ 31,405 $ 63,697 $ 57,190 Income tax expense $ 8,710 $ 6,342 $ 9,204 $ 10,323 Effective tax rate 23.2 % 20.2 % 14.4 % 18.1 % |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Nature of Business) (Details) | Aug. 03, 2019USD ($)stateStores | Aug. 04, 2018Stores |
Accounting Policies [Abstract] | ||
Products offering price, maximum price | $ | $ 5 | |
Number of states in which entity operates (state) | state | 36 | |
Number of stores (store) | Stores | 833 | 692 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (New Accounting Pronouncements) (Details) - USD ($) $ in Thousands | Aug. 03, 2019 | May 04, 2019 | Feb. 03, 2019 | Feb. 02, 2019 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 |
Significant Accounting Policies [Line Items] | |||||||
Assets | $ 1,659,418 | $ 1,570,111 | $ 952,264 | $ 772,337 | |||
Prepaid expenses and other current assets | 52,436 | 49,047 | 60,124 | 50,210 | |||
Total current assets | 605,103 | 631,180 | 642,257 | 550,374 | |||
Operating lease assets | 709,325 | 628,924 | 0 | 0 | |||
Other accrued expenses | 83,876 | 96,168 | 104,201 | 66,933 | |||
Total current liabilities | 305,861 | 245,072 | 253,105 | 184,740 | |||
Deferred rent and other | 0 | 0 | (84,065) | (79,639) | |||
Long-term operating lease liabilities | 701,621 | 709,945 | 0 | 0 | |||
Total liabilities | 1,007,482 | 955,017 | 337,170 | 264,379 | |||
Total shareholders’ equity | 651,936 | $ 635,999 | 615,094 | 615,094 | 507,958 | $ 477,918 | $ 458,558 |
Total liabilities and shareholders' equity (deficit) | $ 1,659,418 | 1,570,111 | $ 952,264 | $ 772,337 | |||
Accounting Standards Update 2016-02 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Assets | 617,847 | ||||||
Prepaid expenses and other current assets | (11,077) | ||||||
Total current assets | (11,077) | ||||||
Operating lease assets | 628,924 | ||||||
Other accrued expenses | (8,033) | ||||||
Total current liabilities | (8,033) | ||||||
Deferred rent and other | (84,065) | ||||||
Long-term operating lease liabilities | 709,945 | ||||||
Total shareholders’ equity | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Aug. 03, 2019 | Feb. 02, 2019 | Aug. 04, 2018 |
Significant Accounting Policies [Line Items] | |||
Amortized Cost | $ 90,325 | $ 85,412 | $ 131,441 |
Gross Unrealized Gains | 8 | 0 | 0 |
Gross Unrealized Losses | 0 | 65 | 227 |
Fair Market Value | 90,333 | 85,347 | 131,214 |
Fair Value, Inputs, Level 1 | |||
Significant Accounting Policies [Line Items] | |||
Cash equivalents | 167,900 | 215,700 | 63,900 |
Corporate bonds | Fair Value, Inputs, Level 2 | |||
Significant Accounting Policies [Line Items] | |||
Amortized Cost | 89,018 | 83,128 | 125,027 |
Gross Unrealized Gains | 7 | 0 | 0 |
Gross Unrealized Losses | 0 | 63 | 222 |
Fair Market Value | 89,025 | 83,065 | 124,805 |
Municipal bonds | Fair Value, Inputs, Level 2 | |||
Significant Accounting Policies [Line Items] | |||
Amortized Cost | 1,307 | 2,284 | 6,414 |
Gross Unrealized Gains | 1 | 0 | 0 |
Gross Unrealized Losses | 0 | 2 | 5 |
Fair Market Value | 1,308 | $ 2,282 | 6,409 |
Other Long-term Investments | |||
Significant Accounting Policies [Line Items] | |||
Amortized Cost | 1,043 | 1,404 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Market Value | 1,043 | 1,404 | |
Other Long-term Investments | Corporate bonds | Fair Value, Inputs, Level 1 | |||
Significant Accounting Policies [Line Items] | |||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 0 | ||
Other Long-term Investments | Corporate bonds | Fair Value, Inputs, Level 2 | |||
Significant Accounting Policies [Line Items] | |||
Amortized Cost | 1,043 | 1,404 | |
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 0 | ||
Fair Market Value | $ 1,043 | $ 1,404 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies Prepaid expenses and OCA (Details) - USD ($) $ in Millions | Aug. 03, 2019 | Feb. 02, 2019 | Aug. 04, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Prepaid expense | $ 19.6 | $ 26.1 | $ 32.7 |
Other current assets | $ 32.8 | $ 34 | $ 17.5 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies Other Accrued Expenses (Details) - USD ($) $ in Millions | Aug. 03, 2019 | Feb. 02, 2019 | Aug. 04, 2018 |
Payables and Accruals [Abstract] | |||
Other accrued expenses | $ 16.8 | $ 54.2 | $ 15.6 |
Revenue Contracts With Custom_4
Revenue Contracts With Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Aug. 03, 2019 | Aug. 04, 2018 | May 05, 2018 | Aug. 03, 2019 | Aug. 04, 2018 | Feb. 02, 2019 | |
Net sales | $ 417,400 | $ 347,734 | $ 782,162 | $ 644,056 | ||
Net sales as a percentage of net sales | 100.00% | 100.00% | 100.00% | 100.00% | ||
Cumulative effect on retained earnings, net of tax | $ 486 | |||||
Disaggregation of Revenue | Disaggregation of Revenue The following table provides information about disaggregated revenue by groups of products: leisure, fashion and home, and party and snack (in thousands): Thirteen Weeks Ended Thirteen Weeks Ended August 3, 2019 August 4, 2018 Amount Percentage of Net Sales Amount Percentage of Net Sales Leisure $ 220,703 52.9 % $ 187,279 53.9 % Fashion and home 122,105 29.3 % 100,255 28.8 % Party and snack 74,592 17.8 % 60,200 17.3 % Total $ 417,400 100.0 % $ 347,734 100.0 % Twenty-Six Weeks Ended Twenty-Six Weeks Ended August 3, 2019 August 4, 2018 Amount Percentage of Net Sales Amount Percentage of Net Sales Leisure $ 399,023 51.0 % $ 332,011 51.5 % Fashion and home 231,953 29.7 % 191,838 29.8 % Party and snack 151,186 19.3 % 120,207 18.7 % Total $ 782,162 100.0 % $ 644,056 100.0 % | |||||
Retained earnings | ||||||
Cumulative effect on retained earnings, net of tax | $ 500 | |||||
Notes Payable, Other Payables | ||||||
Cumulative effect on retained earnings, net of tax | 100 | |||||
Accrued Liabilities | ||||||
Cumulative effect on retained earnings, net of tax | 700 | |||||
Deferred Income Tax Charge | ||||||
Cumulative effect on retained earnings, net of tax | $ 100 | |||||
Leisure | ||||||
Net sales | $ 220,703 | $ 187,279 | $ 399,023 | $ 332,011 | ||
Net sales as a percentage of net sales | 52.90% | 53.90% | 51.00% | 51.50% | ||
Fashion and home | ||||||
Net sales | $ 122,105 | $ 100,255 | $ 231,953 | $ 191,838 | ||
Net sales as a percentage of net sales | 29.30% | 28.80% | 29.70% | 29.80% | ||
Total | ||||||
Net sales | $ 74,592 | $ 60,200 | $ 151,186 | $ 120,207 | ||
Net sales as a percentage of net sales | 17.80% | 17.30% | 19.30% | 18.70% |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Aug. 03, 2019USD ($) | Aug. 03, 2019USD ($)lease | |
Lessee, Lease, Description [Line Items] | ||
Number of leases (lease) | lease | 32 | |
Long-term purchase commitment, amount | $ 52.1 | |
Operating lease, weighted average remaining lease term (years) | 7 years 7 months 6 days | 7 years 7 months 6 days |
Operating lease, weighted average discount rate, percent | 7.40% | 7.40% |
Operating lease, payments | $ 62 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, renewal term (years) | 10 years | 10 years |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, renewal term (years) | 15 years | 15 years |
Leases - Components of Net Leas
Leases - Components of Net Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Aug. 03, 2019 | Aug. 03, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 35,319 | $ 69,031 |
Variable lease cost | 9,922 | 19,212 |
Net lease cost | $ 45,241 | $ 88,243 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities Under Operating Leases (Details) $ in Thousands | Aug. 03, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 75,373 |
2020 | 150,558 |
2021 | 145,284 |
2022 | 135,842 |
2023 | 125,697 |
After 2023 | 422,200 |
Total lease payments | 1,054,954 |
Less: imputed interest | 254,826 |
Present value of lease liabilities | $ 800,128 |
Income Per Common Share (Comput
Income Per Common Share (Computations Of Basic And Diluted Income (Loss) Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Aug. 03, 2019 | May 04, 2019 | Aug. 04, 2018 | May 05, 2018 | Aug. 03, 2019 | Aug. 04, 2018 | |
Earnings Per Share [Abstract] | ||||||
Common stock not included in the computations of diluted earnings per share | 4,592 | 2,296 | ||||
Numerator: | ||||||
Net income | $ 28,831 | $ 25,662 | $ 25,063 | $ 21,804 | $ 54,493 | $ 46,867 |
Denominator: | ||||||
Weighted-average common shares outstanding - basic (shares) | 55,950,733 | 55,730,621 | 55,930,313 | 55,671,729 | ||
Dilutive impact of options and warrants (shares) | 343,376 | 461,363 | 356,319 | 438,632 | ||
Weighted average common share outstanding - diluted (shares) | 56,294,109 | 56,191,984 | 56,286,632 | 56,110,361 | ||
Per common share: | ||||||
Basic income (loss) per common share (dollars per share) | $ 0.52 | $ 0.45 | $ 0.97 | $ 0.84 | ||
Diluted income (loss) per common share (dollars per share) | $ 0.51 | $ 0.45 | $ 0.97 | $ 0.84 |
Line of Credit (Line of Credit)
Line of Credit (Line of Credit) (Details) - Renewed Credit Facility | 6 Months Ended |
Aug. 03, 2019USD ($) | |
Debt Instrument [Line Items] | |
Revolving credit facility maximum borrowings | $ 20,000,000 |
Revolving credit facility collateral amount | 100,000,000 |
Increase in revolving credit facility | 50,000,000 |
Issuance of letters of credit | $ 20,000,000 |
Debt instrument, interest rate, increase (decrease) | 2.00% |
Line of credit facility, current borrowing capacity | $ 0 |
LIBOR Plus | |
Debt Instrument [Line Items] | |
Interest rate on borrowings (percent) | 1.00% |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) ft² in Thousands, $ in Millions | 6 Months Ended |
Aug. 03, 2019USD ($)ft² | |
Purchase commitment, remaining minimum amount committed | $ 3.4 |
Georgia [Member] | |
Area of real estate property (in sqft) | ft² | 700 |
Payments to acquire buildings | $ 42 |
Texas [Member] | |
Area of real estate property (in sqft) | ft² | 860 |
Payments to acquire buildings | $ 47 |
Share-Based Compensation (2002
Share-Based Compensation (2002 Equity Incentive Plan) (Details) - 2002 Equity Incentive Plan - shares | Aug. 03, 2019 | 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) | 3,300,000 |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule Of Stock Option Activity Under Plan) (Details) | 6 Months Ended | 12 Months Ended |
Aug. 03, 2019$ / sharesshares | Feb. 02, 2019$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock option maximum term (years) | 10 years | |
Stock option vesting period (years) | 4 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options outstanding, Balance (shares) | shares | 374,257 | |
Options outstanding, Forfeited (shares) | shares | (862) | |
Options outstanding, Exercised (shares) | shares | (97,053) | |
Options outstanding, Balance (shares) | shares | 276,342 | 374,257 |
Options outstanding, Exercisable (shares) | shares | 264,785,000 | |
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) | $ / shares | $ 30,230 | |
Weighted average exercise price, Exercised (dollars per share) | $ / shares | 30,210 | |
Weighted average exercise price, Forfeited (dollars per share) | $ / shares | 39,390 | |
Weighted average exercise price, Balance (dollars per share) | $ / shares | 30,210 | $ 30,230 |
Weighted average exercise price, Exercisable (dollars per share) | $ / shares | $ 29,980 | |
Weighted Average Remaining Contractual Term (in years) | 4 years 6 months | 5 years 1 month 6 days |
Weighted Average Remaining Contractual Term, Exercisable | 4 years 4 months 24 days |
Share-Based Compensation (Share
Share-Based Compensation (Share-Based Compensation Valuation of Stock Options) (Details) | 6 Months Ended |
Aug. 03, 2019shares | |
Share-based Compensation [Abstract] | |
Stock options granted | 0 |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Stock Units and Performance-Based Restricted Stock Units) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Aug. 03, 2019 | Aug. 03, 2019 | Aug. 04, 2018 | Feb. 02, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (862) | |||
Repurchase and retirement of common stock | $ 16,599 | $ 2,000 | ||
Unrecognized compensation costs related to non-vested share-based compensation | $ 25,600 | $ 25,600 | ||
Compensation cost not yet recognized, period for recognition (years) | 2 years 6 months | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (years) | 1 year | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (years) | 5 years | |||
Restricted Stock Units | ||||
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 | 261,525 | 261,525 | 292,888 | |
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price | $ 77.63 | $ 77.63 | $ 53.52 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 82,586 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 119.10 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (103,391) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 43.60 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (10,558) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 66.43 | |||
Performance-Based Restricted Stock Units | ||||
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 | 354,590 | 354,590 | 416,200 | |
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price | $ 66.60 | $ 66.60 | $ 47.38 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 83,363 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 116.94 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (117,137) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 39.21 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (27,836) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 45.23 | |||
Treasury Stoc | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Repurchased During Period, Shares | 81,366 | 110,151 | ||
Additional paid-in capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Repurchase and retirement of common stock | $ 16,598 | $ 10,100 | $ 7,600 |
Share-Based Compensation (Sha_2
Share-Based Compensation (Share Repurchase Program) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Nov. 02, 2019 | Aug. 03, 2019 | Feb. 02, 2019 | |
Subsequent Event [Line Items] | |||
Authorized amount | $ 100,000,000 | ||
Repurchase and retirement of common stock (in shares) | 146,185 | 21,810 | |
Repurchase and retirement of common stock | $ 16,599,000 | $ 2,000,000 | |
Average price (dollars per share) | $ 113.55 | $ 91.07 | |
Scenario, Forecast [Member] | |||
Subsequent Event [Line Items] | |||
Repurchase and retirement of common stock (in shares) | 191,367 | ||
Repurchase and retirement of common stock | $ 20,300,000 | ||
Average price (dollars per share) | $ 106 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2019 | Aug. 04, 2018 | Aug. 03, 2019 | Aug. 04, 2018 | |
Income Tax [Line Items] | ||||
Income before income taxes | $ 37,541,000 | $ 31,405,000 | $ 63,697,000 | $ 57,190,000 |
Income tax expense | $ 8,710,000 | $ 6,342,000 | $ 9,204,000 | $ 10,323,000 |
Effective tax rate | 23.20% | 20.20% | 14.40% | 18.10% |
Accrual for uncertain tax, interest or penalties | $ 0 | $ 0 | ||
Minimum | ||||
Income Tax [Line Items] | ||||
State income taxes, statute of limitations period (years) | 3 years | |||
Maximum | ||||
Income Tax [Line Items] | ||||
State income taxes, statute of limitations period (years) | 4 years |