Cover
Cover - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Mar. 18, 2020 | Aug. 03, 2018 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 1, 2020 | ||
Current Fiscal Year End Date | --02-01 | ||
Document Transition Report | false | ||
Entity File Number | 001-35600 | ||
Entity Registrant Name | Five Below, Inc. | ||
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 | ||
Entity Address, Postal Zip Code | 19106 | ||
City Area Code | (215) | ||
Local Phone Number | 546-7909 | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | FIVE | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 55,603,036 | ||
Entity Public Float | $ 5,205,255,158 | ||
Documents Incorporated by Reference | Portions of the registrant's Proxy Statement for the 2020 Annual Meeting of Shareholders to be held on June 16, 2020 (hereinafter referred to as the “Proxy Statement”) are incorporated by reference into Part III of this report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001177609 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 202,490 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 202,490 | $ 251,748 |
Short-term investment securities | 59,229 | 85,412 |
Inventories | 324,028 | 243,636 |
Prepaid income taxes | 4,063 | 1,337 |
Prepaid expenses and other current assets | 75,903 | 60,124 |
Total current assets | 665,713 | 642,257 |
Property and equipment, net | 439,086 | 301,297 |
Operating lease assets | 842,988 | 0 |
Deferred income taxes | 0 | 6,126 |
Other assets | 10,874 | 2,584 |
Total assets | 1,958,661 | 952,264 |
Current liabilities: | ||
Line of credit | 0 | 0 |
Accounts payable | 130,242 | 103,692 |
Income taxes payable | 9,505 | 20,626 |
Accrued salaries and wages | 19,873 | 24,586 |
Other accrued expenses | 81,255 | 104,201 |
Operating lease liabilities | 110,470 | 0 |
Total current liabilities | 351,345 | 253,105 |
Deferred rent and other | 1,199 | 0 |
Deferred rent and other | 1,199 | 84,065 |
Deferred income taxes | 8,716 | 0 |
Long-term operating lease liabilities | 837,623 | 0 |
Total liabilities | 1,198,883 | 337,170 |
Commitments and contingencies (note 6) | ||
Shareholders’ equity: | ||
Common stock, $0.01 par value. Authorized 120,000,000 shares; issued and outstanding 55,712,067 and 55,759,048 shares, respectively. | 557 | 557 |
Additional paid-in capital | 322,330 | 352,702 |
Retained earnings | 436,891 | 261,835 |
Total shareholders’ equity | 759,778 | 615,094 |
Total liabilities and shareholders' equity (deficit) | $ 1,958,661 | $ 952,264 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 01, 2020 | Feb. 02, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 55,712,067 | 55,759,048 |
Common stock, shares outstanding | 55,712,067 | 55,759,048 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 1,846,730 | $ 1,559,563 | $ 1,278,208 |
Cost of goods sold | 1,172,764 | 994,478 | 814,795 |
Gross profit | 673,966 | 565,085 | 463,413 |
Selling, general and administrative expenses | 456,682 | 377,901 | 306,022 |
Operating income | 217,284 | 187,184 | 157,391 |
Interest income and other, net | (4,285) | (4,623) | (1,458) |
Income before income taxes | 221,569 | 191,807 | 158,849 |
Income tax expense | 46,513 | 42,162 | 56,398 |
Net income | $ 175,056 | $ 149,645 | $ 102,451 |
Basic (loss) income per common share (dollars per share) | $ 3.14 | $ 2.68 | $ 1.86 |
Diluted (loss) income per common share (dollars per share) | $ 3.12 | $ 2.66 | $ 1.84 |
Weighted average shares outstanding: | |||
Basic shares | 55,823,535 | 55,763,034 | 55,208,246 |
Diluted shares | 56,166,167 | 56,220,864 | 55,561,472 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated deficit [Member] | Unrestricted stock [Member] |
Balance at Jan. 28, 2017 | $ 331,405 | $ 549 | $ 321,603 | $ 9,253 | |
Balance, common stock, shares at Jan. 28, 2017 | 54,904,954 | ||||
Share-based compensation expense | 16,114 | 16,114 | |||
Issuance of unrestricted stock awards | 238 | $ 0 | 238 | ||
Issuance of unrestricted stock awards (in shares) | 4,464 | ||||
Exercise of options and warrants to purchase common stock | 9,601 | $ 3 | 9,598 | ||
Exercise of options and warrants to purchase common stock (in shares) | 327,980 | ||||
Vesting of restricted stock units and performance-based restricted stock units | (2) | 0 | |||
Vesting of restricted stock units (in shares) | (229,553) | ||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | $ 2 | ||||
Common Shares Withheld for Taxes | 33,327 | ||||
Common Shares Withheld | (1,504) | $ 0 | (1,504) | ||
Issuance of common stock to employees under employee stock purchase plan | 251 | 251 | |||
Issuance of common stock to employees under employee stock purchase plan (in shares) | 4,465 | ||||
Net income | 102,451 | 102,451 | |||
Balance at Feb. 03, 2018 | 458,558 | $ 554 | 346,300 | 111,704 | |
Balance, common stock, shares at Feb. 03, 2018 | 55,438,089 | ||||
Cumulative Effect on Retained Earnings, Net of Tax | 486 | ||||
Issuance of unrestricted stock awards | 11,807 | $ 0 | 11,807 | ||
Issuance of unrestricted stock awards (in shares) | 0 | ||||
Exercise of options and warrants to purchase common stock | 4,027 | $ 1 | 4,026 | ||
Exercise of options and warrants to purchase common stock (in shares) | 145,157 | ||||
Vesting of restricted stock units and performance-based restricted stock units | (1,987) | (1,987) | |||
Vesting of restricted stock units (in shares) | (21,810) | ||||
Issuance of common stock (in shares) | (305,201) | (2,056) | |||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 3 | $ 3 | |||
Common Shares Withheld for Taxes | 113,058 | ||||
Common Shares Withheld | $ (7,990) | $ (1) | (7,989) | ||
Common shares withheld for taxes (in shares) | (21,810) | ||||
Stock Repurchased and Retired During Period, Value | $ 2,000 | ||||
Stock Issued During Period, Value, New Issues | (180) | (180) | |||
Issuance of common stock to employees under employee stock purchase plan | 365 | 365 | |||
Issuance of common stock to employees under employee stock purchase plan (in shares) | 3,413 | ||||
Net income | 149,645 | 149,645 | |||
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 | |||
Issuance of unrestricted stock awards | $ 12,136 | 12,136 | |||
Issuance of unrestricted stock awards (in shares) | 0 | ||||
Exercise of options and warrants to purchase common stock | 4,109 | $ 2 | 4,107 | ||
Exercise of options and warrants to purchase common stock (in shares) | 141,582 | ||||
Issuance of common stock (in shares) | (227,020) | (1,634) | |||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 2 | $ 2 | |||
Common Shares Withheld for Taxes | 83,121 | ||||
Common Shares Withheld | $ (10,367) | $ (1) | (10,366) | ||
Common shares withheld for taxes (in shares) | (337,552) | (337,552) | |||
Stock Repurchased and Retired During Period, Value | $ 36,885 | $ (3) | 36,882 | ||
Stock Issued During Period, Value, New Issues | (198) | $ 0 | (198) | ||
Issuance of common stock to employees under employee stock purchase plan | 435 | 435 | |||
Issuance of common stock to employees under employee stock purchase plan (in shares) | 3,456 | ||||
Net income | 175,056 | ||||
Balance at Feb. 01, 2020 | $ 759,778 | $ 557 | $ 322,330 | $ 436,891 | |
Balance, common stock, shares at Feb. 01, 2020 | 55,712,067 | 55,712,067 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Operating activities: | |||
Net income | $ 175,056 | $ 149,645 | $ 102,451 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 54,979 | 41,451 | 33,241 |
Share-based compensation expense | 12,383 | 12,018 | 16,373 |
Deferred income tax expense | 14,842 | 550 | 4,363 |
Other non-cash expenses | 117 | 44 | 138 |
Changes in operating assets and liabilities: | |||
Inventories | (80,392) | (56,599) | (32,589) |
Prepaid income taxes | (2,726) | 927 | (1,277) |
Prepaid expenses and other assets | (16,603) | (15,655) | (16,366) |
Accounts payable | 20,742 | 32,866 | 19,809 |
Income taxes payable | (11,121) | (4,649) | 1,902 |
Accrued salaries and wages | (4,713) | 1,680 | 12,112 |
Operating leases | 13,922 | 12,143 | 15,886 |
Other accrued expenses | 10,543 | 9,712 | 11,338 |
Net cash provided by operating activities | 187,029 | 184,133 | 167,381 |
Investing activities: | |||
Purchases of investment securities and other investments | (136,148) | (117,371) | (234,856) |
Sales, maturities, and redemptions of investment securities | 154,865 | 191,619 | 163,501 |
Capital expenditures | (212,297) | (113,720) | (67,795) |
Net cash used in investing activities | (193,580) | (39,472) | (139,150) |
Financing activities: | |||
Net proceeds from issuance of common stock | 435 | 365 | 251 |
Repurchase and retirement of common stock | (36,885) | (1,987) | 0 |
Proceeds from exercise of options to purchase common stock and vesting of restricted and performance-based restricted stock units | 4,110 | 4,030 | 9,603 |
Common shares withheld for taxes | 10,367 | 7,990 | 1,504 |
Net cash (used in) provided by financing activities | (42,707) | (5,582) | 8,350 |
Net (decrease) increase in cash and cash equivalents | (49,258) | 139,079 | 36,581 |
Cash and cash equivalents at end of year | 251,748 | 112,669 | 76,088 |
Cash and cash equivalents at end of year | 202,490 | 251,748 | 112,669 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 0 | 3 | 4 |
Income taxes paid | 45,518 | 45,589 | 51,405 |
(Decrease) increase in accounts payable and accrued purchases of property and equipment | $ (19,411) | $ 48,723 | $ 3,093 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 01, 2020 | |
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, with most 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 February 1, 2020 , 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 February 1, 2020 and February 2, 2019 , the Company operated 900 stores and 750 stores, respectively, each operating under the name “Five Below”, and sells merchandise on the internet, through the Company's fivebelow.com e-commerce website. The Company's consolidated financial statements include the accounts of Five Below, Inc. and its subsidiary (1616 Holdings, Inc., formerly known as Five Below Merchandising, Inc.). All intercompany transactions and accounts are eliminated in the consolidation of the Company's and subsidiary's financial statements. (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 consists of 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 consists of a 52-week fiscal year. References to "fiscal year 2017" or "fiscal 2017" refer to the period from January 29, 2017 to February 3, 2018, which consists of a 53-week fiscal year. (c) Cash and Cash Equivalents The Company considers all highly liquid investments purchased with a maturity date of three months or less when purchased to be cash equivalents. Our cash equivalents consist of credit and debit card receivables, money market funds, corporate bonds and municipal bonds with original maturities of 90 days or less, which are classified as cash and cash equivalents in the accompanying consolidated balance sheets. The majority of payments due from banks for third-party credit card and debit card transactions resulting from customer purchases at the Company’s retail stores process within 24 to 48 hours, except for transactions occurring on a Friday, which are generally processed the following Monday. Amounts due from banks for these transactions classified as cash equivalents totaled $8.9 million and $7.4 million as of February 1, 2020 and February 2, 2019 , respectively. Book overdrafts, which are outstanding checks in excess of funds on deposit, are recorded within accounts payable in the accompanying consolidated balance sheets and within operating activities in the accompanying consolidated statements of cash flows. As of February 1, 2020 and February 2, 2019 , the Company had cash equivalents of $200.1 million and $215.7 million , respectively. (d) 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 investment securities, accounts payable, and borrowings, if any, under a line of credit (as defined in note 5). 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 any current or future borrowings under the line of credit approximates their 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 cash equivalents and the investments in corporate bonds are level 1 while the investments in municipal bonds are level 2. The fair market values of level 2 investments 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 February 1, 2020 and February 2, 2019 , the Company's short-term investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following (in thousands): As of February 1, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 58,625 $ — $ 4 $ 58,621 Municipal bonds 604 — — 604 Total $ 59,229 $ — $ 4 $ 59,225 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 Short-term investment securities as of February 1, 2020 and February 2, 2019 (e) Inventories Inventories consist of finished goods purchased for resale, including freight and tariffs, and are stated at the lower of cost and net realizable value, at the individual product level. Cost is determined on a weighted average cost method. Management of the Company reviews inventory levels in order to identify slow-moving merchandise and uses markdowns to clear merchandise. Inventory cost is reduced when the selling price less costs of disposal is below cost. The Company accrues an estimate for inventory shrink for the period between the last physical count and the balance sheet date. The shrink estimate can be affected by changes in merchandise mix and changes in actual shrink trends. (f) Prepaid Expenses and Other Current Assets Prepaid expenses in fiscal 2019 and fiscal 2018 were $17.2 million and $26.1 million , respectively. Other current assets in fiscal 2019 and fiscal 2018 were $58.7 million and $34.0 million (g) Property and Equipment Property and equipment are stated at cost. Additions and improvements are capitalized, while repairs and maintenance are charged to expense as incurred. Depreciation and amortization is recorded using the straight-line method over the shorter of the estimated useful lives of the assets or the terms of the respective leases, if applicable. The estimated useful lives are three to ten years for furniture and fixtures and computers and equipment. Store leasehold improvements are amortized over the shorter of the useful life or the lease term plus assumed extensions, which is generally ten years . Leasehold improvements located in the distribution centers and the corporate headquarters are amortized over the shorter of the useful life or the lease term. Depreciation and amortization expense for property and equipment, which is included in selling, general and administrative expenses in the accompanying consolidated statements of operations, was $55.0 million , $41.5 million and $33.2 million in fiscal 2019 , fiscal 2018 and fiscal 2017 , respectively. Property and equipment, net, consists of the following (in thousands): February 1, 2020 February 2, 2019 Land $ 14,773 $ 7,150 Furniture and fixtures 202,340 145,254 Leasehold improvements 240,664 166,374 Computers and equipment 117,803 69,739 Construction in process 78,577 81,368 Property and equipment, gross 654,157 469,885 Less: Accumulated depreciation and amortization (215,071 ) (168,588 ) Property and equipment, net $ 439,086 $ 301,297 (h) Impairment of Long-Lived Assets Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Assets are grouped and evaluated for impairment at the lowest level of which there are identifiable cash flows, which is generally at a store level. Assets are reviewed for impairment using factors including, but not limited to, the Company's future operating plans and projected cash flows. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated undiscounted future cash flows, then an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Fair value is based on discounted future cash flows of the asset using a discount rate commensurate with the risk. In the event of a store closure, the Company will record an impairment charge, if appropriate, or accelerate depreciation over the revised useful life of the asset. Based on its Company's most recent analysis, management believes that no impairment of long-lived assets exists for the period ended February 1, 2020 . (i) Deferred Financing Costs Deferred financing costs are amortized to interest expense over the term of the related credit agreement. As of February 1, 2020 and February 2, 2019 (j) Operating Leases The Company leases store locations, distribution centers, the corporate headquarters and equipment used in its operations and evaluates and classifies its leases as operating or capital leases for financial reporting purposes. Any assets held under a capital lease are included in property and equipment, net. Operating lease expense is recorded on a straight-line basis over the lease term. At the inception of a lease, the Company determines the lease term, which includes periods under the exercise of renewal options that are reasonably assured. Renewal options are exercised at the Company's sole discretion. In September 2016, the Company signed a 15 year lease for a new corporate headquarters location in Philadelphia, Pennsylvania. The Company currently occupies approximately 190,000 square feet of office space with multiple options to expand in the future. The lease agreement expires in early 2033 with three successive options to renew for additional terms up to approximately fifteen years. The distribution center in Olive Branch, Mississippi is leased under a lease agreement expiring in 2022 with options to renew for three successive five-year periods. The distribution center in Pedricktown, New Jersey is leased under a lease agreement expiring in 2025 with options to renew for three successive five-year periods. Generally, the Company’s store leases have expected lease terms of ten years, which are comprised of an initial term of ten years or an initial term of five years and one assumed five -year extension, resulting in a ten -year life. The expected lease term is used to determine whether a lease is capital or operating and to calculate straight-line rent expense. Substantially all of the Company's leases include options that allow the Company to renew or extend the lease term beyond the initial lease period, subject to terms and conditions agreed upon at the inception of the lease. Such terms and conditions include rental rates agreed upon at the inception of the lease that could represent below or above market rental rates later in the life of the lease, depending upon market conditions at the time of such renewal or extension. In addition, the Company's leases may include early termination options. (k) Capital Leases The Company establishes assets and liabilities for the estimated construction costs incurred under lease arrangements where the Company is considered the owner for accounting purposes only, or build-to-suit leases, to the extent the Company is involved in the construction of structural improvements or takes construction risk prior to commencement of a lease. Upon occupancy of facilities under build-to-suit leases, the Company assesses whether these arrangements qualify for sales recognition under the sale-leaseback accounting guidance. If the transaction does not qualify for sales recognition under the sale-leaseback accounting guidance, the Company continues to be the deemed accounting owner. As of February 2, 2019 , the Company had approximately $7 million of a capital lease land asset and liability. There were no material capital leases as of February 1, 2020 (l) Other Accrued Expenses Other accrued expenses include accrued capital expenditures of $28.9 million and $54.2 million in fiscal 2019 and fiscal 2018 (m) Deferred Rent and Other The following disclosures for the year ended February 2, 2019 were made in accordance with the accounting guidance for operating leases in effect at that time. Certain of the Company’s operating leases contain either rent holidays and/or predetermined fixed escalations of minimum rental payments during the original and/or extended lease terms. For these leases, the Company recognizes the related rent expense on a straight-line basis over the life of the lease and records the difference between the amounts charged to operations and amounts paid as deferred rent. The life of the lease is the initial term plus assumed extensions. The Company also receives certain lease incentives in conjunction with entering into operating leases. These lease incentives are recorded as deferred rent at the beginning of the lease term and recognized as a reduction of rent expense over the lease term. In addition, certain of the Company’s leases contain future contingent increases in rents. Such increases in rent expense are recorded in the period in which such contingent increases to the rents take place. The following table summarizes the Company's deferred rent and other long-term liabilities balances (in thousands): February 1, 2020 February 2, 2019 Current: Deferred rent (1) $ — $ 8,228 Total current liabilities $ — $ 8,228 Long-term: Deferred rent $ — $ 84,065 Other 1,199 — Total long-term liabilities $ 1,199 $ 84,065 (1) The current portion of deferred rent is included in the other accrued expenses line item in the accompanying consolidated balance sheets. (n) Equity Method Investments The Company uses the equity method to account for its investments in which the Company is deemed to have the ability to exercise significant influence over an investee’s operating and financial policies or in which the Company holds a significant partnership or limited liability company interest. Equity method investments are initially recorded at cost in other assets in the consolidated balance sheets. The cost is adjusted to recognize the Company's proportionate share of the investee’s net income or loss after the date of investment and is also adjusted for any impairments resulting from other-than-temporary declines in fair value. These adjustments are recorded in interest income and other, net in the consolidated statements of operations. Additional adjustments to cost may include any additional contributions made and dividends received and both are recorded in other assets in the consolidated balance sheets. (o) Share-Based Compensation The Company measures the cost of employee services received in exchange for share-based compensation based on the grant date fair value of the employee stock award. The Company recognizes compensation expense generally on a straight-line basis over the employee's requisite service period (generally the vesting period of the equity grant) based on the estimated grant date fair value of restricted stock units ("RSUs") and performance-based restricted stock units ("PSUs") and uses the Black-Scholes option-pricing model for grants of stock options. The fair value of restricted stock awards are based on the closing price of the Company's common stock on the grant date and the fair value of stock options are based on the Black-Scholes option-pricing model utilizing the closing price of the Company's common stock on the grant date as the fair value of common stock in the model. Future share-based compensation cost will increase when the Company grants additional equity awards. Modifications, cancellations or repurchases of awards after the grant date may require the Company to accelerate any remaining unearned share-based compensation cost or incur incremental compensation costs. Share-based compensation cost recognized and included in expenses for fiscal 2019 , fiscal 2018 and fiscal 2017 , was $12.4 million , $12.0 million and $16.4 million (p) Revenue Recognition Revenue 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 are accepted under certain conditions within 14 days of purchase. 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 consumer in net sales. Sales tax collected from customers and remitted to governmental authorities are accounted for on a net basis and, therefore, excluded from sales in the accompanying consolidated statements of operations. (q) Shipping and Handling Revenues and Costs The Company includes all shipping and handling revenue from e-commerce sales in net sales. Shipping and handling costs, which are included in cost of goods sold in the accompanying consolidated statements of operations, include fulfillment and shipping costs related to the Company's e-commerce operations. (r) Cost of Goods Sold Cost of goods sold reflects the direct costs of purchased merchandise and inbound freight, as well as store occupancy, distribution and buying expenses. Store occupancy costs include rent, common area maintenance, utilities and property taxes for all store locations. Distribution costs include costs for receiving, processing, warehousing and shipping of merchandise to or from the Company's distribution centers and between store locations. Buying costs include compensation expense for the Company's internal buying organization. (s) Selling, General and Administrative Expenses (t) Vendor Allowances (u) Store Pre-Opening Costs Costs incurred between completion of a new store location’s construction and its opening (pre-opening costs) are charged to expense as incurred. Pre-opening costs were $9.3 million , $6.5 million and $6.2 million in fiscal 2019 , fiscal 2018 , and fiscal 2017 , respectively, and are recorded in the accompanying consolidated statements of operations based on the nature of the expense. (v) Advertising Costs Advertising costs are charged to expense the first time the advertising takes place. Advertising expenses were $48.1 million , $42.2 million and $30.8 million in fiscal 2019 , fiscal 2018 and fiscal 2017 , respectively, and are included in selling, general and administrative expenses in the accompanying consolidated statements of operations. (w) Income Taxes Income taxes are accounted for under the asset-and-liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records a valuation allowance to reduce its deferred tax assets when uncertainty regarding their realizability exists. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. (x) Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. (y) Use of Estimates The preparation of 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, adjustments to net realizable value for inventories, income taxes, share-based compensation expense and the incremental borrowing rate utilized in operating lease liabilities. (z) Recently Issued Accounting Standards 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. The Company also elected the practical expedient related to land easements, allowing the Company to carry forward its 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 rate implicit in the lease is not readily determinable for the Company's leases, the Company utilizes its incremental borrowing rate to determine the present value of future lease payments. The incremental borrowing rate represents a significant judgment and is determined based on an analysis of the Company's synthetic credit rating, prevailing financial market conditions, corporate bond yields, treasury bond yields, and the effect of collateralization. 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. 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. Therefore, generally, except for renewals that 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 March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 affects all entities that issue share-based payment awards to their employees. This accounting standards update makes several modifications to the accounting for employee share-based payment transactions, including the requirement that the excess income tax benefits or deficiencies that arise when the tax consequences of share-based compensation differ from amounts previously recognized in the consolidated statement of operations be recognized as income tax benefit or expense in the consolidated statement of operations rather than as additional paid-in capital in the consolidated balance sheets. The guidance also clarifies the classification of components of share-based awards on the consolidated statement of cash flows such that excess income tax benefits should not be presented separately from other income taxes in the consolidated statement of cash flows and, thus, should be classified as an operating activity rather than a financing activity as they are under the current guidance. ASU 2016-09 is effective for financial statements issued for annual reporting periods beginning after December 15, 2016 and interim periods within those years. The Company adopted this standard prospectively in the first quarter of fiscal 2017. This standard will result in a decrease or increase to the Company's effective tax rate, net income, and earnings per share based upon the requirement to recognize the excess income tax benefits or deficiencies in the consolidated statements of operations and change the Company's earnings per share calculation to exclude excess tax benefits previously assumed under the treasury stock method. No changes were required related to the classification of employee taxes paid for withheld shares in the Company's consolidated statements of cash flows since the Company has historically classified these within financing cash flows. 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. In April 2019, the FASB issued ASU 2019-04, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses," which addresses certain fair value disclosure requirements, the measurement basis |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | (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 on February 4, 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): Fiscal Year Fiscal Year Fiscal Year 2019 2018 2017 Amount Percentage of Net Sales Amount Percentage of Net Sales Amount Percentage of Net Sales Leisure $ 919,627 49.8 % $ 793,180 50.9 % $ 640,961 50.1 % Fashion and home 577,458 31.3 % 482,424 30.9 % 402,888 31.6 % Party and snack 349,645 18.9 % 283,959 18.2 % 234,359 18.3 % Total $ 1,846,730 100.0 % $ 1,559,563 100.0 % $ 1,278,208 100.0 % 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 . The cumulative adjustment was related to the recognition of gift card breakage. The adoption of ASU 2014-09 had an immaterial impact on the Company’s financial statements for the fifty-two weeks ended February 2, 2019 . |
Income Per Common Share
Income Per Common Share | 12 Months Ended |
Feb. 01, 2020 | |
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 exercise of 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): Fiscal Year 2019 2018 2017 Numerator: Net income $ 175,056 $ 149,645 $ 102,451 Denominator: Weighted average common shares outstanding - basic 55,823,535 55,763,034 55,208,246 Dilutive impact of options, restricted stock units, and employee stock purchase plan 342,632 457,830 353,226 Weighted average common shares outstanding - diluted 56,166,167 56,220,864 55,561,472 Per common share: Basic income per common share $ 3.14 $ 2.68 $ 1.86 Diluted income per common share $ 3.12 $ 2.66 $ 1.84 The effects of the assumed exercise of stock options outstanding as of February 3, 2018 for 66,624 shares of common stock were excluded from the fiscal 2017 calculation of diluted income per common share as their impact would have been anti-dilutive. The effects of restricted stock units outstanding as of February 1, 2020 , February 2, 2019 and February 3, 2018 for 576 , 2,315 and 13,323 shares of common stock, respectively, were excluded from the fiscal 2019 , fiscal 2018 and fiscal 2017 calculation of diluted income per common share as their impact would have been anti-dilutive. |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Leases | 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. 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 February 1, 2020 , the Company’s operating lease agreements, including assumed extensions, which are generally those that take the lease to a ten-year term, expire through fiscal 2034. As of February 1, 2020 , the weighted average remaining lease term for the Company's operating leases is 8.1 years , and the weighted average discount rate is 6.6% . For the year ended February 1, 2020 , cash paid for amounts included in the measurement of operating lease liabilities of $129.7 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 February 1, 2020 (in thousands): February 1, 2020 Lease Cost Fifty-Two Weeks Ended Operating lease cost $ 144,971 Variable lease cost 40,379 Net lease cost* $ 185,350 * Excludes short-term lease cost, which is immaterial The following table summarizes the maturity of lease liabilities under operating leases as of February 1, 2020 (in thousands): Maturity of Lease Liabilities Operating Leases 2020 $ 165,641 2021 164,048 2022 156,101 2023 147,612 2024 136,219 After 2024 444,517 Total lease payments $ 1,214,138 Less: imputed interest 266,045 Present value of lease liabilities $ 948,093 The following disclosures for the year ended February 2, 2019 were made in accordance with the accounting guidance for operating leases in effect at that time. The Company’s minimum rental commitments under operating lease agreements, including assumed extensions, as of February 2, 2019 , are as follows (in thousands): Fiscal Year Retail stores Corporate office, distribution centers and other Total 2019 $ 136,858 $ 10,529 $ 147,387 2020 139,892 11,885 151,777 2021 133,356 11,834 145,190 2022 123,858 11,441 135,299 2023 115,229 9,897 125,126 Thereafter 379,150 55,071 434,221 $ 1,028,343 $ 110,657 $ 1,139,000 Rent expense, including base and contingent rent under operating leases, was $119.0 million and $98.2 million in fiscal 2018 and fiscal 2017 , respectively. Contingent rents were $0.6 million and $0.6 million in fiscal 2018 and fiscal 2017 , respectively. During fiscal 2019, the Company opened new stores and modified leases for existing stores which resulted in an increase in our right of use assets and lease liabilities of approximately $273.1 million and $278.9 million , respectively. In addition, as of February 1, 2020 , the Company has entered into commitments for new stores for which the leases have not yet commenced that have future minimum lease payments of approximately $289.4 million . During the thirteen weeks ended February 1, 2020 , the Company committed to 77 new store leases with average terms of approximately ten years that have future minimum lease payments of approximately $141.2 million . From February 2, 2020 to March 19, 2020 , the Company committed to 19 new store leases with terms of ten years that have future minimum lease payments of approximately $34.4 million |
Term Loan and Line of Credit
Term Loan and Line of Credit | 12 Months Ended |
Feb. 01, 2020 | |
Debt Disclosure [Abstract] | |
Term Loan and 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., 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 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. During fiscal 2019 , fiscal 2018 and fiscal 2017 , the Company had no borrowings or interest expense under the Amended Revolving Credit Facility. As of February 1, 2020 , February 2, 2019 and February 3, 2018 , the Company had approximately $20.0 million available on the line of credit. All obligations under the Amended Revolving Credit Facility and Revolving Credit Facility are secured by substantially all of the Company's assets and are guaranteed by the subsidiary. As of February 1, 2020 and February 2, 2019 , the Company was in compliance with the covenants applicable to it under the Amended Revolving Credit Facility and Revolving Credit Facility. Effective March 18, 2020, the Company exercised the right to increase the Amended Revolving Credit Facility to $50.0 million and have this full amount available on the line of credit. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 01, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | (6) Commitments and Contingencies Commitments Other Contractual Commitments The Company has an executive severance plan that is applicable to certain key employees that provide for, among other things, salary, bonus, severance, and change-in-control provisions. As of February 1, 2020 , the Company had other purchase commitments of approximately $7.1 million consisting of purchase agreements for materials that will be used in the construction of new stores. In August 2019, the Company acquired land in Conroe, Texas, to build an approximately 860,000 square foot distribution center. The total cost of the land and building is expected to be approximately $56 million , of which approximately $31 million has been paid through February 1, 2020. The Company expects to occupy the distribution center in Conroe, Texas in 2020. Contingencies Legal Matters |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Feb. 01, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | (7) Shareholders’ Equity As of February 1, 2020 , the Company is authorized to issue 120,000,000 shares of $0.01 par value common stock and 5,000,000 shares of $0.01 par value preferred stock. The holders of the common stock are entitled to one vote per share of common stock and are entitled to receive dividends if declared by the board of directors. The preferred stock may be issued from time to time in series as designated by the board of directors. The designations, powers, preferences, voting rights, privileges, options, conversion rights, and other special rights of the shares of each such series and the qualifications, limitations and restrictions thereof shall be designated by the board of directors. Common Stock The Five Below, Inc. 2012 Employee Stock Purchase Plan (the “ESPP”) is intended to be qualified as an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code of 1986. The number of shares of common stock reserved for issuance, which is subject to other limitations, is 500,000 shares. The ESPP allows eligible employees the opportunity to purchase, subject to limitations, shares of the Company’s common stock through payroll deductions at a discount of 10% of the fair market value of such shares on the purchase date. In fiscal 2019 , the Company issued 3,456 shares of common stock under the ESPP resulting in proceeds of $0.4 million and recorded share-based compensation expense of $47.9 thousand in connection with the ESPP related to the amount of the discount. In fiscal 2018 , the Company issued 3,413 shares of common stock under the ESPP resulting in proceeds of $0.4 million and recorded share-based compensation expense of $32.4 thousand in connection with the ESPP related to the amount of the discount. In fiscal 2017 , the Company issued 4,465 shares of common stock under the ESPP resulting in proceeds of $0.3 million and recorded share-based compensation expense of $21.3 thousand in connection with the ESPP related to the amount of the discount. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | (8) 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 February 1, 2020 , 3,293,081 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 under the Plan was as follows: Options Weighted Weighted Balance as of January 28, 2017 866,637 $ 29.60 6.7 Granted — — Forfeited (19,172 ) 37.13 Exercised (327,980 ) 29.27 Balance as of February 3, 2018 519,485 29.53 5.9 Granted — — Forfeited (71 ) 4.95 Exercised (145,157 ) 27.73 Balance as of February 2, 2019 374,257 30.23 5.1 Granted — — Forfeited (1,150 ) 39.47 Exercised (141,582 ) 29.02 Balance as of February 1, 2020 231,525 30.92 4.1 Exercisable as of February 1, 2020 219,968 $ 30.68 4.0 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. The Company did not grant any stock options in fiscal 2019 , fiscal 2018 and fiscal 2017 . The Company uses the simplified method to estimate the expected term of the option. The expected volatility incorporates historical and implied volatility of similar entities whose share prices are publicly available. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The total intrinsic value of stock options exercised during fiscal 2019 , fiscal 2018 and fiscal 2017 was $14.0 million , $9.9 million and $9.7 million , respectively. The aggregate intrinsic value of stock options exercisable and stock options outstanding as of February 1, 2020 was $18.2 million and $19.0 million , respectively. In fiscal 2019 , fiscal 2018 and fiscal 2017 , the Company received cash from the exercise of options of $4.1 million , $4.0 million and $9.6 million , respectively. Upon option exercise, the Company issued new shares of common stock. Restricted Stock Units and Performance-Based Restricted Stock Units All RSUs and PSUs 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 under the Plan was as follows: Restricted Stock Units Performance-Based Restricted Stock Units Number Weighted-Average Grant Date Fair Value Number Weighted-Average Grant Date Fair Value Non-vested balance as of January 28, 2017 275,176 $ 36.27 504,556 $ 36.91 Granted 158,304 40.52 147,552 39.65 Vested (88,550 ) 34.21 (141,003 ) 38.15 Forfeited (35,376 ) 41.11 (15,446 ) 35.20 Non-vested balance as of February 3, 2018 309,554 38.48 495,659 37.43 Granted 115,411 77.28 121,333 69.59 Vested (107,695 ) 37.98 (197,534 ) 35.69 Forfeited (24,382 ) 43.75 (3,258 ) 69.03 Non-vested balance as of February 2, 2019 292,888 53.52 416,200 47.38 Granted 89,337 119.28 85,939 116.92 Vested (109,924 ) 44.70 (117,137 ) 39.21 Forfeited (21,949 ) 70.48 (27,836 ) 45.23 Non-vested balance as of February 1, 2020 250,352 $ 79.37 357,166 $ 66.96 In connection with the vesting of RSUs and PSUs during fiscal 2019 , the Company withheld 83,121 shares with an aggregate value of $10.4 million in satisfaction of minimum tax withholding obligations due upon vesting. In connection with the vesting of RSUs and PSUs during fiscal 2018 , the Company withheld 113,058 shares with an aggregate value of $8.0 million in satisfaction of minimum tax withholding obligations due upon vesting. In connection with the vesting of RSUs during fiscal 2017 , the Company withheld 33,327 shares with an aggregate value of $1.5 million in satisfaction of minimum tax withholding obligations due upon vesting. As of February 1, 2020 , there was $19.5 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 2.3 years. 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 the Company's common stock through March 31, 2021, on the open market, in privately negotiated transactions, or otherwise. In fiscal 2018 , the Company repurchased 21,810 shares under this program at an aggregate cost of approximately $2.0 million , or an average price of $91.07 per share. In fiscal 2019 , the Company repurchased 337,552 shares under this program at an aggregate cost of approximately $36.9 million , or an average price of $109.27 per share. Subsequent to February 1, 2020, we repurchased 137,023 shares under this program at an aggregate cost of approximately $12.7 million , or an average price of $92.42 per share. There can be no assurances that any additional repurchases will be completed, or as to the timing or amount of any repurchases. The share repurchase program may be modified or discontinued at any time. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (9) Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. As of February 1, 2020 , no valuation allowance has been provided for net deferred tax assets as management believes that it is more likely than not that the Company will realize all deferred tax assets as of February 1, 2020 . The components of the income tax expense are as follows (in thousands): Fiscal Year 2019 2018 2017 Current: Federal $ 25,069 $ 33,297 $ 45,867 State 6,602 8,315 6,168 31,671 41,612 52,035 Deferred: Federal 13,487 2,000 4,606 State 1,355 (1,450 ) (243 ) 14,842 550 4,363 Income tax expense $ 46,513 $ 42,162 $ 56,398 The reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows: Fiscal Year 2019 2018 2017 Statutory federal tax rate 21.0 % 21.0 % 33.7 % State taxes, net of federal benefit 2.8 2.8 2.4 Other (1) (2.8 ) (1.8 ) (0.6 ) 21.0 % 22.0 % 35.5 % (1) Other line includes excess tax benefits relating to share-based payment accounting. The effective tax rate for fiscal 2019 compared to fiscal 2018 was primarily driven by discrete items, which includes the impact of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting" with respect to the requirements 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 fiscal 2018 compared to fiscal 2017 was primarily driven by the impact of tax reform as a result of the TCJA and the adoption of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting." The tax effects of temporary differences that give rise to deferred tax assets and liabilities are (in thousands): February 1, 2020 February 2, 2019 Deferred tax assets: Inventories $ 13,182 $ 9,633 Deferred revenue 1,255 472 Accrued bonus 1,007 3,553 Deferred rent — 24,136 Operating lease liabilities 242,432 — Other 5,208 4,848 Deferred tax assets 263,084 42,642 Deferred tax liabilities: Property and equipment (55,953 ) (35,642 ) Operating lease assets (214,935 ) — Other (912 ) (874 ) Deferred tax liabilities (271,800 ) (36,516 ) $ (8,716 ) $ 6,126 The Company had no material accrual for uncertain tax positions or interest or penalties related to income taxes on the Company’s balance sheets as of February 1, 2020 and February 2, 2019 , 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 fiscal 2019 , fiscal 2018 , or fiscal 2017 . The Company files a federal income tax return as well as state tax returns. The Company’s U.S. federal income tax returns for the fiscal years ended February 3, 2018 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 years to four years |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Feb. 01, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | (10) Employee Benefit Plan The Company has a 401(k) Retirement Savings Plan and employees can contribute up to the maximum amount allowed under law. The Company may make discretionary matching and profit sharing contributions, which vest over a period of five years from each employee’s commencement of employment with the Company. During fiscal 2019 , fiscal 2018 and fiscal 2017 , the Company made matching contributions of $2.9 million , $1.2 million and $0.5 million |
Segment Reporting
Segment Reporting | 12 Months Ended |
Feb. 01, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | (11) Segment Reporting The Company evaluates performance internally and manages the business on the basis of one operating segment; therefore, it has only one reportable segment. All of the Company’s identifiable assets are located in the United States. Set forth below is data for the following groups of products: leisure, fashion and home, and party and snack. The percentage of net sales represented by each product group for each of the last three fiscal years was as follows: Percentage of Net Sales Fiscal Year 2019 2018 2017 Leisure 49.8 % 50.9 % 50.1 % Fashion and home 31.3 % 30.9 % 31.6 % Party and snack 18.9 % 18.2 % 18.3 % Total 100.0 % 100.0 % 100.0 % Leisure includes items such as sporting goods, games, toys, tech, books, electronic accessories, and arts and crafts. Fashion and home includes items such as personal accessories, “attitude” t-shirts, beauty offerings, home goods and storage options. Party and snack includes items such as party and seasonal goods, greeting cards, candy and other snacks, and beverages. |
Quarterly Results of Operations
Quarterly Results of Operations and Seasonality (Unaudited) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations and Seasonality | (12) Quarterly Results of Operations and Seasonality (Unaudited) Quarterly financial results for fiscal 2019 and fiscal 2018 were as follows: (in thousands except for per share data). Fiscal Year 2019 (1) Fiscal Year 2018 (1) Fourth Third Second First Fourth Third Second First Net sales $ 687,130 $ 377,438 $ 417,400 $ 364,762 $ 602,684 $ 312,823 $ 347,734 $ 296,322 Gross profit $ 289,128 $ 118,682 $ 146,171 $ 119,985 $ 244,005 $ 102,090 $ 121,752 $ 97,238 Net income $ 110,374 $ 10,189 $ 28,831 $ 25,662 $ 89,262 $ 13,516 $ 25,063 $ 21,804 Basic income per common share $ 1.98 $ 0.18 $ 0.52 $ 0.46 $ 1.60 $ 0.24 $ 0.45 $ 0.39 Diluted income per common share $ 1.97 $ 0.18 $ 0.51 $ 0.46 $ 1.59 $ 0.24 $ 0.45 $ 0.39 (1) The sum of the quarterly per share amounts may not equal per share amounts reported for the fiscal year due to rounding. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Description 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, with most 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 February 1, 2020 , 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 February 1, 2020 and February 2, 2019 , the Company operated 900 stores and 750 stores, respectively, each operating under the name “Five Below”, and sells merchandise on the internet, through the Company's fivebelow.com e-commerce website. The Company's consolidated financial statements include the accounts of Five Below, Inc. and its subsidiary (1616 Holdings, Inc., formerly known as Five Below Merchandising, Inc.). All intercompany transactions and accounts are eliminated in the consolidation of the Company's and subsidiary's financial statements. |
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 consists of 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 consists of a 52-week fiscal year. References to "fiscal year 2017" or "fiscal 2017" refer to the period from January 29, 2017 to February 3, 2018, which consists of a 53-week fiscal year. |
Cash and Cash Equivalents | (c) Cash and Cash Equivalents The Company considers all highly liquid investments purchased with a maturity date of three months or less when purchased to be cash equivalents. Our cash equivalents consist of credit and debit card receivables, money market funds, corporate bonds and municipal bonds with original maturities of 90 days or less, which are classified as cash and cash equivalents in the accompanying consolidated balance sheets. The majority of payments due from banks for third-party credit card and debit card transactions resulting from customer purchases at the Company’s retail stores process within 24 to 48 hours, except for transactions occurring on a Friday, which are generally processed the following Monday. Amounts due from banks for these transactions classified as cash equivalents totaled $8.9 million and $7.4 million as of February 1, 2020 and February 2, 2019 , respectively. Book overdrafts, which are outstanding checks in excess of funds on deposit, are recorded within accounts payable in the accompanying consolidated balance sheets and within operating activities in the accompanying consolidated statements of cash flows. As of February 1, 2020 and February 2, 2019 , the Company had cash equivalents of $200.1 million and $215.7 million , respectively. |
Fair Value of Financial Instruments | (d) 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 investment securities, accounts payable, and borrowings, if any, under a line of credit (as defined in note 5). 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 any current or future borrowings under the line of credit approximates their 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 cash equivalents and the investments in corporate bonds are level 1 while the investments in municipal bonds are level 2. The fair market values of level 2 investments 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 February 1, 2020 and February 2, 2019 , the Company's short-term investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following (in thousands): As of February 1, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 58,625 $ — $ 4 $ 58,621 Municipal bonds 604 — — 604 Total $ 59,229 $ — $ 4 $ 59,225 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 Short-term investment securities as of February 1, 2020 and February 2, 2019 |
Property and Equipment | (g) Property and Equipment Property and equipment are stated at cost. Additions and improvements are capitalized, while repairs and maintenance are charged to expense as incurred. Depreciation and amortization is recorded using the straight-line method over the shorter of the estimated useful lives of the assets or the terms of the respective leases, if applicable. The estimated useful lives are three to ten years for furniture and fixtures and computers and equipment. Store leasehold improvements are amortized over the shorter of the useful life or the lease term plus assumed extensions, which is generally ten years . Leasehold improvements located in the distribution centers and the corporate headquarters are amortized over the shorter of the useful life or the lease term. Depreciation and amortization expense for property and equipment, which is included in selling, general and administrative expenses in the accompanying consolidated statements of operations, was $55.0 million , $41.5 million and $33.2 million in fiscal 2019 , fiscal 2018 and fiscal 2017 , respectively. Property and equipment, net, consists of the following (in thousands): February 1, 2020 February 2, 2019 Land $ 14,773 $ 7,150 Furniture and fixtures 202,340 145,254 Leasehold improvements 240,664 166,374 Computers and equipment 117,803 69,739 Construction in process 78,577 81,368 Property and equipment, gross 654,157 469,885 Less: Accumulated depreciation and amortization (215,071 ) (168,588 ) Property and equipment, net $ 439,086 $ 301,297 |
Impairment of Long-Lived Assets | (h) Impairment of Long-Lived Assets Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Assets are grouped and evaluated for impairment at the lowest level of which there are identifiable cash flows, which is generally at a store level. Assets are reviewed for impairment using factors including, but not limited to, the Company's future operating plans and projected cash flows. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated undiscounted future cash flows, then an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Fair value is based on discounted future cash flows of the asset using a discount rate commensurate with the risk. In the event of a store closure, the Company will record an impairment charge, if appropriate, or accelerate depreciation over the revised useful life of the asset. Based on its Company's most recent analysis, management believes that no impairment of long-lived assets exists for the period ended February 1, 2020 . |
Deferred Financing Costs | (i) Deferred Financing Costs Deferred financing costs are amortized to interest expense over the term of the related credit agreement. As of February 1, 2020 and February 2, 2019 |
Leases and Deferred Rent | (k) Capital Leases The Company establishes assets and liabilities for the estimated construction costs incurred under lease arrangements where the Company is considered the owner for accounting purposes only, or build-to-suit leases, to the extent the Company is involved in the construction of structural improvements or takes construction risk prior to commencement of a lease. Upon occupancy of facilities under build-to-suit leases, the Company assesses whether these arrangements qualify for sales recognition under the sale-leaseback accounting guidance. If the transaction does not qualify for sales recognition under the sale-leaseback accounting guidance, the Company continues to be the deemed accounting owner. As of February 2, 2019 , the Company had approximately $7 million of a capital lease land asset and liability. There were no material capital leases as of February 1, 2020 |
Share-Based Compensation | (o) Share-Based Compensation The Company measures the cost of employee services received in exchange for share-based compensation based on the grant date fair value of the employee stock award. The Company recognizes compensation expense generally on a straight-line basis over the employee's requisite service period (generally the vesting period of the equity grant) based on the estimated grant date fair value of restricted stock units ("RSUs") and performance-based restricted stock units ("PSUs") and uses the Black-Scholes option-pricing model for grants of stock options. The fair value of restricted stock awards are based on the closing price of the Company's common stock on the grant date and the fair value of stock options are based on the Black-Scholes option-pricing model utilizing the closing price of the Company's common stock on the grant date as the fair value of common stock in the model. Future share-based compensation cost will increase when the Company grants additional equity awards. Modifications, cancellations or repurchases of awards after the grant date may require the Company to accelerate any remaining unearned share-based compensation cost or incur incremental compensation costs. Share-based compensation cost recognized and included in expenses for fiscal 2019 , fiscal 2018 and fiscal 2017 , was $12.4 million , $12.0 million and $16.4 million |
Revenue Recognition | (p) Revenue Recognition Revenue 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 are accepted under certain conditions within 14 days of purchase. 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 consumer in net sales. Sales tax collected from customers and remitted to governmental authorities are accounted for on a net basis and, therefore, excluded from sales in the accompanying consolidated statements of operations. |
Shipping and Handling Revenues and Costs | (q) Shipping and Handling Revenues and Costs The Company includes all shipping and handling revenue from e-commerce sales in net sales. Shipping and handling costs, which are included in cost of goods sold in the accompanying consolidated statements of operations, include fulfillment and shipping costs related to the Company's e-commerce operations. |
Cost of Goods Sold | (r) Cost of Goods Sold Cost of goods sold reflects the direct costs of purchased merchandise and inbound freight, as well as store occupancy, distribution and buying expenses. Store occupancy costs include rent, common area maintenance, utilities and property taxes for all store locations. Distribution costs include costs for receiving, processing, warehousing and shipping of merchandise to or from the Company's distribution centers and between store locations. Buying costs include compensation expense for the Company's internal buying organization. |
Selling, General and Administrative Expenses | (s) Selling, General and Administrative Expenses |
Vendor Allowances | (t) Vendor Allowances |
Store Pre-Opening Costs | (u) Store Pre-Opening Costs Costs incurred between completion of a new store location’s construction and its opening (pre-opening costs) are charged to expense as incurred. Pre-opening costs were $9.3 million , $6.5 million and $6.2 million in fiscal 2019 , fiscal 2018 , and fiscal 2017 , respectively, and are recorded in the accompanying consolidated statements of operations based on the nature of the expense. |
Advertising Costs | (v) Advertising Costs Advertising costs are charged to expense the first time the advertising takes place. Advertising expenses were $48.1 million , $42.2 million and $30.8 million in fiscal 2019 , fiscal 2018 and fiscal 2017 , respectively, and are included in selling, general and administrative expenses in the accompanying consolidated statements of operations. |
Income Taxes | (w) Income Taxes Income taxes are accounted for under the asset-and-liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records a valuation allowance to reduce its deferred tax assets when uncertainty regarding their realizability exists. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. |
Commitments and Contingencies | (x) Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Use of Estimates | (y) Use of Estimates The preparation of 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, adjustments to net realizable value for inventories, income taxes, share-based compensation expense and the incremental borrowing rate utilized in operating lease liabilities. |
Recently Issued Accounting Standards | (z) Recently Issued Accounting Standards 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. The Company also elected the practical expedient related to land easements, allowing the Company to carry forward its 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 rate implicit in the lease is not readily determinable for the Company's leases, the Company utilizes its incremental borrowing rate to determine the present value of future lease payments. The incremental borrowing rate represents a significant judgment and is determined based on an analysis of the Company's synthetic credit rating, prevailing financial market conditions, corporate bond yields, treasury bond yields, and the effect of collateralization. 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. 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. Therefore, generally, except for renewals that 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 March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 affects all entities that issue share-based payment awards to their employees. This accounting standards update makes several modifications to the accounting for employee share-based payment transactions, including the requirement that the excess income tax benefits or deficiencies that arise when the tax consequences of share-based compensation differ from amounts previously recognized in the consolidated statement of operations be recognized as income tax benefit or expense in the consolidated statement of operations rather than as additional paid-in capital in the consolidated balance sheets. The guidance also clarifies the classification of components of share-based awards on the consolidated statement of cash flows such that excess income tax benefits should not be presented separately from other income taxes in the consolidated statement of cash flows and, thus, should be classified as an operating activity rather than a financing activity as they are under the current guidance. ASU 2016-09 is effective for financial statements issued for annual reporting periods beginning after December 15, 2016 and interim periods within those years. The Company adopted this standard prospectively in the first quarter of fiscal 2017. This standard will result in a decrease or increase to the Company's effective tax rate, net income, and earnings per share based upon the requirement to recognize the excess income tax benefits or deficiencies in the consolidated statements of operations and change the Company's earnings per share calculation to exclude excess tax benefits previously assumed under the treasury stock method. No changes were required related to the classification of employee taxes paid for withheld shares in the Company's consolidated statements of cash flows since the Company has historically classified these within financing cash flows. 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. In April 2019, the FASB issued ASU 2019-04, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses," which addresses certain fair value disclosure requirements, the measurement basis under the measurement alternative and which equity securities have to be remeasured at historical exchange rates. In May 2019, the FASB issued ASU 2019-05, "Financial Instruments - Credit Losses (Topic 326), Targeted Transition Relief," which gives entities the ability to irrevocably elect the fair value option in Subtopic 825-10 for certain existing financial assets upon transition to ASU 2016-13. The effective date of the standards will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 and early adoption is permitted for annual periods beginning after December 15, 2018. The new standard will be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align the Company's credit loss methodology with the new standard. The adoption of this ASU is not expected to have a material impact on the consolidated financial statements. |
Inventory, Policy [Policy Text Block] | (e) Inventories Inventories consist of finished goods purchased for resale, including freight and tariffs, and are stated at the lower of cost and net realizable value, at the individual product level. Cost is determined on a weighted average cost method. Management of the Company reviews inventory levels in order to identify slow-moving merchandise and uses markdowns to clear merchandise. Inventory cost is reduced when the selling price less costs of disposal is below cost. The Company accrues an estimate for inventory shrink for the period between the last physical count and the balance sheet date. The shrink estimate can be affected by changes in merchandise mix and changes in actual shrink trends. |
Other Current Assets [Text Block] | (f) Prepaid Expenses and Other Current Assets Prepaid expenses in fiscal 2019 and fiscal 2018 were $17.2 million and $26.1 million , respectively. Other current assets in fiscal 2019 and fiscal 2018 were $58.7 million and $34.0 million |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Accrued Expenses (Policies) | 12 Months Ended |
Feb. 01, 2020 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | (l) Other Accrued Expenses Other accrued expenses include accrued capital expenditures of $28.9 million and $54.2 million in fiscal 2019 and fiscal 2018 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Leases (Policies) | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Leases and Deferred Rent | (k) Capital Leases The Company establishes assets and liabilities for the estimated construction costs incurred under lease arrangements where the Company is considered the owner for accounting purposes only, or build-to-suit leases, to the extent the Company is involved in the construction of structural improvements or takes construction risk prior to commencement of a lease. Upon occupancy of facilities under build-to-suit leases, the Company assesses whether these arrangements qualify for sales recognition under the sale-leaseback accounting guidance. If the transaction does not qualify for sales recognition under the sale-leaseback accounting guidance, the Company continues to be the deemed accounting owner. As of February 2, 2019 , the Company had approximately $7 million of a capital lease land asset and liability. There were no material capital leases as of February 1, 2020 |
Lessee, Leases [Policy Text Block] | (j) Operating Leases The Company leases store locations, distribution centers, the corporate headquarters and equipment used in its operations and evaluates and classifies its leases as operating or capital leases for financial reporting purposes. Any assets held under a capital lease are included in property and equipment, net. Operating lease expense is recorded on a straight-line basis over the lease term. At the inception of a lease, the Company determines the lease term, which includes periods under the exercise of renewal options that are reasonably assured. Renewal options are exercised at the Company's sole discretion. In September 2016, the Company signed a 15 year lease for a new corporate headquarters location in Philadelphia, Pennsylvania. The Company currently occupies approximately 190,000 square feet of office space with multiple options to expand in the future. The lease agreement expires in early 2033 with three successive options to renew for additional terms up to approximately fifteen years. The distribution center in Olive Branch, Mississippi is leased under a lease agreement expiring in 2022 with options to renew for three successive five-year periods. The distribution center in Pedricktown, New Jersey is leased under a lease agreement expiring in 2025 with options to renew for three successive five-year periods. Generally, the Company’s store leases have expected lease terms of ten years, which are comprised of an initial term of ten years or an initial term of five years and one assumed five -year extension, resulting in a ten -year life. The expected lease term is used to determine whether a lease is capital or operating and to calculate straight-line rent expense. Substantially all of the Company's leases include options that allow the Company to renew or extend the lease term beyond the initial lease period, subject to terms and conditions agreed upon at the inception of the lease. Such terms and conditions include rental rates agreed upon at the inception of the lease that could represent below or above market rental rates later in the life of the lease, depending upon market conditions at the time of such renewal or extension. In addition, the Company's leases may include early termination options. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Equity Method Investments (Policies) | 12 Months Ended |
Feb. 01, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | (n) Equity Method Investments The Company uses the equity method to account for its investments in which the Company is deemed to have the ability to exercise significant influence over an investee’s operating and financial policies or in which the Company holds a significant partnership or limited liability company interest. Equity method investments are initially recorded at cost in other assets in the consolidated balance sheets. The cost is adjusted to recognize the Company's proportionate share of the investee’s net income or loss after the date of investment and is also adjusted for any impairments resulting from other-than-temporary declines in fair value. These adjustments are recorded in interest income and other, net in the consolidated statements of operations. Additional adjustments to cost may include any additional contributions made and dividends received and both are recorded in other assets in the consolidated balance sheets. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Held-to-maturity Securities | Such securities are carried at amortized cost plus accrued interest and consist of the following (in thousands): As of February 1, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 58,625 $ — $ 4 $ 58,621 Municipal bonds 604 — — 604 Total $ 59,229 $ — $ 4 $ 59,225 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 |
Property and Equipment, Net | Property and equipment, net, consists of the following (in thousands): February 1, 2020 February 2, 2019 Land $ 14,773 $ 7,150 Furniture and fixtures 202,340 145,254 Leasehold improvements 240,664 166,374 Computers and equipment 117,803 69,739 Construction in process 78,577 81,368 Property and equipment, gross 654,157 469,885 Less: Accumulated depreciation and amortization (215,071 ) (168,588 ) Property and equipment, net $ 439,086 $ 301,297 |
Deferred Rent | The following table summarizes the Company's deferred rent and other long-term liabilities balances (in thousands): February 1, 2020 February 2, 2019 Current: Deferred rent (1) $ — $ 8,228 Total current liabilities $ — $ 8,228 Long-term: Deferred rent $ — $ 84,065 Other 1,199 — Total long-term liabilities $ 1,199 $ 84,065 (1) The current portion of deferred rent is included in the other accrued expenses line item in the accompanying consolidated balance sheets. |
New Accounting Pronouncement, Early Adoption | 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 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Revenue from Contract with Customer [Abstract] | |
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): Fiscal Year Fiscal Year Fiscal Year 2019 2018 2017 Amount Percentage of Net Sales Amount Percentage of Net Sales Amount Percentage of Net Sales Leisure $ 919,627 49.8 % $ 793,180 50.9 % $ 640,961 50.1 % Fashion and home 577,458 31.3 % 482,424 30.9 % 402,888 31.6 % Party and snack 349,645 18.9 % 283,959 18.2 % 234,359 18.3 % Total $ 1,846,730 100.0 % $ 1,559,563 100.0 % $ 1,278,208 100.0 % |
Income Per Common Share (Tables
Income Per Common Share (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
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): Fiscal Year 2019 2018 2017 Numerator: Net income $ 175,056 $ 149,645 $ 102,451 Denominator: Weighted average common shares outstanding - basic 55,823,535 55,763,034 55,208,246 Dilutive impact of options, restricted stock units, and employee stock purchase plan 342,632 457,830 353,226 Weighted average common shares outstanding - diluted 56,166,167 56,220,864 55,561,472 Per common share: Basic income per common share $ 3.14 $ 2.68 $ 1.86 Diluted income per common share $ 3.12 $ 2.66 $ 1.84 |
Leases (Tables)
Leases (Tables) | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Leases [Abstract] | ||
Lease, Cost [Table Text Block] | The following table is a summary of the Company's components for net lease costs as of February 1, 2020 (in thousands): February 1, 2020 Lease Cost Fifty-Two Weeks Ended Operating lease cost $ 144,971 Variable lease cost 40,379 Net lease cost* $ 185,350 * Excludes short-term lease cost, which is immaterial | |
Leases of Lessee Disclosure [Text Block] | The following table summarizes the maturity of lease liabilities under operating leases as of February 1, 2020 (in thousands): Maturity of Lease Liabilities Operating Leases 2020 $ 165,641 2021 164,048 2022 156,101 2023 147,612 2024 136,219 After 2024 444,517 Total lease payments $ 1,214,138 Less: imputed interest 266,045 Present value of lease liabilities $ 948,093 | The Company’s minimum rental commitments under operating lease agreements, including assumed extensions, as of February 2, 2019 , are as follows (in thousands): Fiscal Year Retail stores Corporate office, distribution centers and other Total 2019 $ 136,858 $ 10,529 $ 147,387 2020 139,892 11,885 151,777 2021 133,356 11,834 145,190 2022 123,858 11,441 135,299 2023 115,229 9,897 125,126 Thereafter 379,150 55,071 434,221 $ 1,028,343 $ 110,657 $ 1,139,000 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule Of Stock Option Activity Under Plan | Stock option activity under the Plan was as follows: Options Weighted Weighted Balance as of January 28, 2017 866,637 $ 29.60 6.7 Granted — — Forfeited (19,172 ) 37.13 Exercised (327,980 ) 29.27 Balance as of February 3, 2018 519,485 29.53 5.9 Granted — — Forfeited (71 ) 4.95 Exercised (145,157 ) 27.73 Balance as of February 2, 2019 374,257 30.23 5.1 Granted — — Forfeited (1,150 ) 39.47 Exercised (141,582 ) 29.02 Balance as of February 1, 2020 231,525 30.92 4.1 Exercisable as of February 1, 2020 219,968 $ 30.68 4.0 |
Schedule Of Fair Value Of Option Award Granted Weighted Average Assumptions | 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. The Company did not grant any stock options in fiscal 2019 , fiscal 2018 and fiscal 2017 . The Company uses the simplified method to estimate the expected term of the option. The expected volatility incorporates historical and implied volatility of similar entities whose share prices are publicly available. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The total intrinsic value of stock options exercised during fiscal 2019 , fiscal 2018 and fiscal 2017 was $14.0 million , $9.9 million and $9.7 million , respectively. The aggregate intrinsic value of stock options exercisable and stock options outstanding as of February 1, 2020 was $18.2 million and $19.0 million , respectively. In fiscal 2019 , fiscal 2018 and fiscal 2017 , the Company received cash from the exercise of options of $4.1 million , $4.0 million and $9.6 million , respectively. Upon option exercise, the Company issued new shares of common stock. |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | RSU and PSU activity under the Plan was as follows: Restricted Stock Units Performance-Based Restricted Stock Units Number Weighted-Average Grant Date Fair Value Number Weighted-Average Grant Date Fair Value Non-vested balance as of January 28, 2017 275,176 $ 36.27 504,556 $ 36.91 Granted 158,304 40.52 147,552 39.65 Vested (88,550 ) 34.21 (141,003 ) 38.15 Forfeited (35,376 ) 41.11 (15,446 ) 35.20 Non-vested balance as of February 3, 2018 309,554 38.48 495,659 37.43 Granted 115,411 77.28 121,333 69.59 Vested (107,695 ) 37.98 (197,534 ) 35.69 Forfeited (24,382 ) 43.75 (3,258 ) 69.03 Non-vested balance as of February 2, 2019 292,888 53.52 416,200 47.38 Granted 89,337 119.28 85,939 116.92 Vested (109,924 ) 44.70 (117,137 ) 39.21 Forfeited (21,949 ) 70.48 (27,836 ) 45.23 Non-vested balance as of February 1, 2020 250,352 $ 79.37 357,166 $ 66.96 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax (Benefit) Expense | The components of the income tax expense are as follows (in thousands): Fiscal Year 2019 2018 2017 Current: Federal $ 25,069 $ 33,297 $ 45,867 State 6,602 8,315 6,168 31,671 41,612 52,035 Deferred: Federal 13,487 2,000 4,606 State 1,355 (1,450 ) (243 ) 14,842 550 4,363 Income tax expense $ 46,513 $ 42,162 $ 56,398 |
Reconciliation of Statutory Federal Income Tax Rate to Effective Income Tax Rate | The reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows: Fiscal Year 2019 2018 2017 Statutory federal tax rate 21.0 % 21.0 % 33.7 % State taxes, net of federal benefit 2.8 2.8 2.4 Other (1) (2.8 ) (1.8 ) (0.6 ) 21.0 % 22.0 % 35.5 % (1) |
Significant Components of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to deferred tax assets and liabilities are (in thousands): February 1, 2020 February 2, 2019 Deferred tax assets: Inventories $ 13,182 $ 9,633 Deferred revenue 1,255 472 Accrued bonus 1,007 3,553 Deferred rent — 24,136 Operating lease liabilities 242,432 — Other 5,208 4,848 Deferred tax assets 263,084 42,642 Deferred tax liabilities: Property and equipment (55,953 ) (35,642 ) Operating lease assets (214,935 ) — Other (912 ) (874 ) Deferred tax liabilities (271,800 ) (36,516 ) $ (8,716 ) $ 6,126 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Segment Reporting [Abstract] | |
Percentage of Net Sales Represented by Each Product Group | Set forth below is data for the following groups of products: leisure, fashion and home, and party and snack. The percentage of net sales represented by each product group for each of the last three fiscal years was as follows: Percentage of Net Sales Fiscal Year 2019 2018 2017 Leisure 49.8 % 50.9 % 50.1 % Fashion and home 31.3 % 30.9 % 31.6 % Party and snack 18.9 % 18.2 % 18.3 % Total 100.0 % 100.0 % 100.0 % |
Quarterly Results of Operatio_2
Quarterly Results of Operations and Seasonality (Unaudited) (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results of Operations | Quarterly financial results for fiscal 2019 and fiscal 2018 were as follows: (in thousands except for per share data). Fiscal Year 2019 (1) Fiscal Year 2018 (1) Fourth Third Second First Fourth Third Second First Net sales $ 687,130 $ 377,438 $ 417,400 $ 364,762 $ 602,684 $ 312,823 $ 347,734 $ 296,322 Gross profit $ 289,128 $ 118,682 $ 146,171 $ 119,985 $ 244,005 $ 102,090 $ 121,752 $ 97,238 Net income $ 110,374 $ 10,189 $ 28,831 $ 25,662 $ 89,262 $ 13,516 $ 25,063 $ 21,804 Basic income per common share $ 1.98 $ 0.18 $ 0.52 $ 0.46 $ 1.60 $ 0.24 $ 0.45 $ 0.39 Diluted income per common share $ 1.97 $ 0.18 $ 0.51 $ 0.46 $ 1.59 $ 0.24 $ 0.45 $ 0.39 (1) The sum of the quarterly per share amounts may not equal per share amounts reported for the fiscal year due to rounding. |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Description of Business) (Details) | Feb. 01, 2020USD ($)Stores | Feb. 02, 2019Stores |
Accounting Policies [Abstract] | ||
Products offering price, maximum price | $ | $ 5 | |
Number of States in which Entity Operates | 36 | |
Number of operated stores | Stores | 900 | 750 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Fiscal Year) (Details) | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 30, 2016 | |
Accounting Policies [Abstract] | ||||
Fiscal year period | 364 days | 371 days | 364 days | 364 days |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Significant Accounting Policies [Line Items] | ||
Cash Equivalents | $ 200.1 | $ 215.7 |
Cash and Cash Equivalents [Member] | ||
Significant Accounting Policies [Line Items] | ||
Cash Equivalents | $ 8.9 | $ 7.4 |
Minimum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Debit and credit card transaction processing period (hours) | 24 hours | |
Maximum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Debit and credit card transaction processing period (hours) | 48 hours |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Municipal Bonds [Member] | ||
Significant Accounting Policies [Line Items] | ||
Debt Securities, Held-to-maturity, Amortized Cost, before Other-than-temporary Impairment | $ 59,229 | $ 85,412 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 0 | 0 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 4 | 65 |
Debt Securities, Held-to-maturity, Fair Value | 59,225 | 85,347 |
Municipal Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Significant Accounting Policies [Line Items] | ||
Debt Securities, Held-to-maturity, Amortized Cost, before Other-than-temporary Impairment | 604 | 2,284 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 0 | 0 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 0 | 2 |
Debt Securities, Held-to-maturity, Fair Value | 604 | 2,282 |
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Significant Accounting Policies [Line Items] | ||
Debt Securities, Held-to-maturity, Amortized Cost, before Other-than-temporary Impairment | 58,625 | 83,128 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 0 | 0 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 4 | 63 |
Debt Securities, Held-to-maturity, Fair Value | $ 58,621 | $ 83,065 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Property and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 54,979 | $ 41,451 | $ 33,241 |
Property and equipment, gross | 654,157 | 469,885 | |
Less: Accumulated depreciation and amortization | (215,071) | (168,588) | |
Property and equipment, net | 439,086 | 301,297 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 14,773 | 7,150 | |
Furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 202,340 | 145,254 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 10 years | ||
Property and equipment, gross | $ 240,664 | 166,374 | |
Computer and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 117,803 | 69,739 | |
Construction in process [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 78,577 | $ 81,368 | |
Minimum [Member] | Furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 3 years | ||
Maximum [Member] | Furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 10 years |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Leases) (Details) | 12 Months Ended |
Feb. 01, 2020period | |
Accounting Policies [Abstract] | |
Operating lease period (years) | 10 years |
Lease renewal period, minimum (years) | 5 years |
Number of lease extension periods | 1 |
Operating lease agreement extension term (years) | 10 years |
Summary of Significant Accou_13
Summary of Significant Accounting Policies (Capital Leases) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Leases [Abstract] | ||
Capital lease obligations | $ 7 | $ 0 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies (Deferred Rent) (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 03, 2019 | Feb. 02, 2019 | |
Current: | ||||
Deferred rent | [1] | $ 0 | $ 8,228 | |
Total current liabilities | 0 | 8,228 | ||
Long-term: | ||||
Deferred rent | 0 | 84,065 | ||
Other | 1,199 | 0 | ||
Total long-term liabilities | $ 1,199 | $ 0 | $ 84,065 | |
[1] | The current portion of deferred rent is included in the other accrued expenses line item in the accompanying consolidated balance sheets. |
Summary of Significant Accou_15
Summary of Significant Accounting Policies (Share-Based Compensation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Accounting Policies [Abstract] | |||
Compensation expense | $ 12.4 | $ 12 | $ 16.4 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies (Revenue Recognition) (Details) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Period of sales return acceptance | 14 days |
Summary of Significant Accou_17
Summary of Significant Accounting Policies (Store Pre-Opening Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Accounting Policies [Abstract] | |||
Pre-opening costs | $ 9.3 | $ 6.5 | $ 6.2 |
Summary of Significant Accou_18
Summary of Significant Accounting Policies (Advertising Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Accounting Policies [Abstract] | |||
Advertising expenses | $ 48.1 | $ 42.2 | $ 30.8 |
Summary of Significant Accou_19
Summary of Significant Accounting Policies (New Accounting Pronouncements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
May 05, 2018 | Feb. 02, 2019 | Feb. 01, 2020 | Feb. 03, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Significant Accounting Policies [Line Items] | ||||||
Prepaid Expense and Other Assets, Current | $ 60,124 | $ 75,903 | $ 49,047 | |||
Cumulative Effect on Retained Earnings, Net of Tax | $ 486 | |||||
Operating lease assets | 0 | 842,988 | 628,924 | |||
Present value of lease liabilities | 948,093 | |||||
Assets | 952,264 | 1,958,661 | 1,570,111 | |||
Assets, Current | 642,257 | 665,713 | 631,180 | |||
Accrued Liabilities, Current | 104,201 | 81,255 | 96,168 | |||
Liabilities, Current | 253,105 | 351,345 | 245,072 | |||
Deferred Rent Credit and Other, Noncurrent | (84,065) | (1,199) | 0 | |||
Long-term operating lease liabilities | 0 | 837,623 | 709,945 | |||
Liabilities | 337,170 | 1,198,883 | 955,017 | |||
Stockholders' Equity Attributable to Parent | 615,094 | 759,778 | 615,094 | $ 458,558 | $ 331,405 | |
Liabilities and Equity | 952,264 | $ 1,958,661 | 1,570,111 | |||
Retained Earnings [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cumulative Effect on Retained Earnings, Net of Tax | 500 | |||||
ASU 2014-09 [Member] | Retained Earnings [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cumulative Effect on Retained Earnings, Net of Tax | 500 | |||||
Accounting Standards Update 2016-02 [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Prepaid Expense and Other Assets, Current | (11,077) | |||||
Operating lease assets | 628,924 | |||||
Assets | 617,847 | |||||
Assets, Current | (11,077) | |||||
Accrued Liabilities, Current | (8,033) | |||||
Liabilities, Current | (8,033) | |||||
Deferred Rent Credit and Other, Noncurrent | (84,065) | |||||
Long-term operating lease liabilities | 709,945 | |||||
Stockholders' Equity Attributable to Parent | $ 0 | |||||
Accounts Payable and Accrued Liabilities [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cumulative Effect on Retained Earnings, Net of Tax | 100 | |||||
Accrued Liabilities [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cumulative Effect on Retained Earnings, Net of Tax | 700 | |||||
Other Assets [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cumulative Effect on Retained Earnings, Net of Tax | $ 100 |
Summary of Significant Accou_20
Summary of Significant Accounting Policies Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid Expense, Current | $ 17.2 | $ 26.1 |
Other Assets, Current | $ 58.7 | $ 34 |
Summary of Significant Accou_21
Summary of Significant Accounting Policies Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax [Line Items] | |||
Deferred Federal Income Tax Expense (Benefit) | $ 13,487 | $ 2,000 | $ 4,606 |
Deferred Income Tax Expense (Benefit) | $ 14,842 | $ 550 | $ 4,363 |
Effective Income Tax Rate Reconciliation, Percent | 21.00% | 22.00% | 35.50% |
Deferred Tax Assets, Deferred Income | $ 1,255 | $ 472 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 33.70% |
Summary of Significant Accou_22
Summary of Significant Accounting Policies Other Accrued Expenses (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Payables and Accruals [Abstract] | ||
Capital Expenditures Incurred but Not yet Paid | $ 28.9 | $ 54.2 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 687,130 | $ 377,438 | $ 417,400 | $ 364,762 | $ 602,684 | $ 312,823 | $ 347,734 | $ 296,322 | $ 1,846,730 | $ 1,559,563 | $ 1,278,208 |
Retail | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 1,846,730 | $ 1,559,563 | $ 1,278,208 | ||||||||
Percentage of Net Sales | 100.00% | 100.00% | 100.00% | ||||||||
Retail | Leisure [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 919,627 | $ 793,180 | $ 640,961 | ||||||||
Percentage of Net Sales | 49.80% | 50.90% | 50.10% | ||||||||
Retail | Fashion And Home [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 577,458 | $ 482,424 | $ 402,888 | ||||||||
Percentage of Net Sales | 31.30% | 30.90% | 31.60% | ||||||||
Retail | Party And Snack [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 349,645 | $ 283,959 | $ 234,359 | ||||||||
Percentage of Net Sales | 18.90% | 18.20% | 18.30% |
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 | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Numerator: | |||||||||||
Net income | $ 110,374 | $ 10,189 | $ 28,831 | $ 25,662 | $ 89,262 | $ 13,516 | $ 25,063 | $ 21,804 | $ 175,056 | $ 149,645 | $ 102,451 |
Denominator: | |||||||||||
Weighted-average common shares outstanding - basic (shares) | 55,823,535 | 55,763,034 | 55,208,246 | ||||||||
Dilutive impact of options and warrants (shares) | 342,632 | 457,830 | 353,226 | ||||||||
Weighted average common share outstanding - diluted (shares) | 56,166,167 | 56,220,864 | 55,561,472 | ||||||||
Per common share: | |||||||||||
Basic income (loss) per common share (dollars per share) | $ 1.98 | $ 0.18 | $ 0.52 | $ 0.46 | $ 1.60 | $ 0.24 | $ 0.45 | $ 0.39 | $ 3.14 | $ 2.68 | $ 1.86 |
Diluted income (loss) per common share (dollars per share) | $ 1.97 | $ 0.18 | $ 0.51 | $ 0.46 | $ 1.59 | $ 0.24 | $ 0.45 | $ 0.39 | $ 3.12 | $ 2.66 | $ 1.84 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Mar. 19, 2020USD ($)lease | Feb. 01, 2020USD ($)lease | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Weighted Average Remaining Lease Term | 8 years 1 month 6 days | |||
Operating Lease, Weighted Average Discount Rate, Percent | 6.60% | |||
Operating Lease, Payments | $ 129,700 | |||
Operating Leases, Rent Expense, Net | $ 119,000 | $ 98,200 | ||
Operating Leases, Rent Expense, Contingent Rentals | 600 | $ 600 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 273,100 | |||
Increase (Decrease) in Operating Lease Liabilities | $ 278,900 | |||
Lessor, Operating Lease, Lease Not yet Commenced, Assumption and Judgment, Value of Underlying Asset, Amount | 289,400 | |||
Number Of Leases | lease | 77 | |||
Long-term Purchase Commitment, Amount | $ 141,200 | |||
Total lease payments | $ 1,214,138 | $ 1,139,000 | ||
Minimum [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Renewal Term | 10 years | |||
Subsequent Event [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Number Of Leases | lease | 19 | |||
Average Lease Term Period | 10 years | |||
Total lease payments | $ 34,400 |
Income Per Common Share (Narrat
Income Per Common Share (Narrative) (Details) - shares | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Share-based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock not included in the computations of diluted earnings per share (in shares) | 66,624 | ||
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock not included in the computations of diluted earnings per share (in shares) | 576 | ||
Share-based Payment Arrangement [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock not included in the computations of diluted earnings per share (in shares) | 2,315 | 13,323 |
Leases (Schedule of Lease Cost)
Leases (Schedule of Lease Cost) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Nov. 02, 2019 | Feb. 01, 2020 | |
Commitments and Contingencies [Line Items] | ||
Operating Lease, Cost | $ 144,971 | |
Variable Lease, Cost | $ 40,379 | |
Lease, Cost | $ 185,350 |
Leases (Schedule of Lease Matur
Leases (Schedule of Lease Maturity - Current Year) (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Leases [Abstract] | ||
2020 | $ 165,641 | $ 147,387 |
2021 | 164,048 | 151,777 |
2022 | 156,101 | 145,190 |
2023 | 147,612 | 135,299 |
2024 | 136,219 | 125,126 |
After 2024 | 444,517 | 434,221 |
Total lease payments | 1,214,138 | $ 1,139,000 |
Less: imputed interest | 266,045 | |
Present value of lease liabilities | $ 948,093 |
Leases Schedule of Lease Maturi
Leases Schedule of Lease Maturity - Prior Year) (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Lessee, Lease, Description [Line Items] | ||
2019 | $ 165,641 | $ 147,387 |
2020 | 164,048 | 151,777 |
2021 | 156,101 | 145,190 |
2022 | 147,612 | 135,299 |
2023 | 136,219 | 125,126 |
Thereafter | 444,517 | 434,221 |
Total lease payments | $ 1,214,138 | 1,139,000 |
Retail Stores [Member] | ||
Lessee, Lease, Description [Line Items] | ||
2019 | 136,858 | |
2020 | 139,892 | |
2021 | 133,356 | |
2022 | 123,858 | |
2023 | 115,229 | |
Thereafter | 379,150 | |
Total lease payments | 1,028,343 | |
Other Commitments [Domain] | ||
Lessee, Lease, Description [Line Items] | ||
2019 | 10,529 | |
2020 | 11,885 | |
2021 | 11,834 | |
2022 | 11,441 | |
2023 | 9,897 | |
Thereafter | 55,071 | |
Total lease payments | $ 110,657 |
Term Loan and Line of Credit (L
Term Loan and Line of Credit (Line of Credit) (Details) | 12 Months Ended |
Feb. 01, 2020USD ($) | |
amended revolving credit facility [Member] | |
Debt Instrument [Line Items] | |
Revolving credit facility maximum borrowings | $ 20,000,000 |
Issuance of letters of credit | 20,000,000 |
Revolving credit facility collateral amount | $ 100,000,000 |
Letter of credit fee (percentage) | 2.00% |
Line of Credit Borrowed and Repaid During Period | $ 0 |
amended revolving credit facility [Member] | LIBOR Plus [Member] | Excess Availability Greater Than Or Equal To 75% [Member] | |
Debt Instrument [Line Items] | |
Interest rate on borrowings (percent) | 1.00% |
amended revolving credit facility [Member] | Borrowing Capacity Increase Under Certain Conditions [Member] | |
Debt Instrument [Line Items] | |
Revolving credit facility maximum borrowings | $ 50,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) ft² in Thousands, $ in Millions | 12 Months Ended |
Feb. 01, 2020USD ($)ft² | |
Commitments and Contingencies [Line Items] | |
Purchase Commitment, Remaining Minimum Amount Committed | $ 7.1 |
Operating lease agreement extension term (years) | 10 years |
Texas [Member] | |
Commitments and Contingencies [Line Items] | |
Area of Real Estate Property | ft² | 860 |
Payments to Acquire Buildings | $ 56 |
Payments to Acquire Land | $ 31 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) | Feb. 01, 2020votes$ / sharesshares | Feb. 02, 2019$ / sharesshares |
Equity [Abstract] | ||
Common stock, shares authorized | shares | 120,000,000 | 120,000,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | shares | 5,000,000 | |
Preferred stock, par value | $ / shares | $ 0.01 | |
Voting right per common stock share (vote) | votes | 1 |
Shareholders' Equity (Common St
Shareholders' Equity (Common Stock) (Details) - USD ($) | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Sep. 27, 2012 | |
Class of Stock [Line Items] | ||||
Number of shares of common stock reserved for issuance (shares) | 500,000 | |||
Discount on common stock fair value for employee purchases (percent) | 10.00% | |||
Percentage of shares vested (percent) | 33.00% | 33.00% | 33.00% | |
Compensation expense | $ 12,400,000 | $ 12,000,000 | $ 16,400,000 | |
Employee stock purchase plan [Member] | ||||
Class of Stock [Line Items] | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 3,456 | 3,413 | 4,465 | |
Compensation expense | $ 47,900 | $ 32,400 | $ 21,300 | |
Proceeds from Issuance of Common Stock | $ 400,000 | $ 400,000 | $ 300,000 |
Share-Based Compensation (2002
Share-Based Compensation (2002 Equity Incentive Plan) (Details) - 2002 Equity Incentive Plan [Member] - shares | Feb. 01, 2020 | 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) | 3,293,081 |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule Of Stock Option Activity Under Plan) (Details) - $ / shares | 12 Months Ended | ||||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 30, 2016 | ||
Share-based Payment Arrangement [Abstract] | |||||
Stock Option Maximum Term | 10 years | ||||
Stock option vesting period | 4 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Options outstanding, Balance (shares) | [1] | 374,257 | 519,485 | 866,637 | |
Options outstanding, Granted (shares) | 0 | 0 | 0 | ||
Options outstanding, Forfeited (shares) | (1,150) | (71) | (19,172) | ||
Options outstanding, Exercised (shares) | (141,582) | (145,157) | (327,980) | ||
Options outstanding, Balance (shares) | [1] | 231,525 | 374,257 | 519,485 | |
Options outstanding, Exercisable (shares) | 219,968 | ||||
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) | [1] | $ 30.23 | $ 29.53 | $ 29.60 | |
Weighted average exercise price, Granted (dollars per share) | 0 | 0 | 0 | ||
Weighted average exercise price, Forfeited (dollars per share) | 39.47 | 4.95 | 37.13 | ||
Weighted average exercise price, Exercised (dollars per share) | 29.02 | 27.73 | 29.27 | ||
Weighted average exercise price, Balance (dollars per share) | [1] | 30.92 | $ 30.23 | $ 29.53 | |
Weighted average exercise price, Exercisable (dollars per share) | $ 30.68 | ||||
Weighted average remaining contractual term | [1] | 4 years 1 month 6 days | 5 years 1 month 6 days | 5 years 10 months 24 days | 6 years 8 months 12 days |
Weighted average remaining contractual term, Exercisable | 4 years | ||||
[1] |
Share-Based Compensation (Stock
Share-Based Compensation (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||
Total intrinsic value of stock options exercised | $ 14,000 | $ 9,900 | $ 9,700 |
Share Based Compensation, Stock Options Exercisable and Outstanding Intrinsic Value | 18,200 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 19,000 | ||
Proceeds from Stock Options Exercised | $ 4,110 | $ 4,030 | $ 9,603 |
Share-Based Compensation (Activ
Share-Based Compensation (Activity Related to Restricted Stock Units) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common Shares Withheld | $ 10,367 | $ 7,990 | $ 1,504 | |
Stock Repurchased and Retired During Period, Shares | 337,552 | 21,810 | ||
Stock Repurchased and Retired During Period, Value | $ 36,885 | $ 2,000 | ||
Unrecognized compensation costs related to non-vested share-based compensation | $ 19,500 | |||
Unrecognized compensation costs related to nonvested share-based compensation, recognized period (years) | 2 years 3 months 18 days | |||
Additional Paid-in Capital [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common Shares Withheld | $ 10,366 | 7,989 | 1,504 | |
Stock Repurchased and Retired During Period, Value | 36,882 | |||
Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common Shares Withheld | $ 1 | $ 1 | $ 0 | |
Common Shares Withheld for Taxes | 83,121 | 113,058 | 33,327 | |
Stock Repurchased and Retired During Period, Shares | 337,552 | |||
Stock Repurchased and Retired During Period, Value | $ (3) | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 250,352 | 292,888 | 309,554 | 275,176 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 89,337 | 115,411 | 158,304 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (109,924) | (107,695) | (88,550) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (21,949) | (24,382) | (35,376) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 79.37 | $ 53.52 | $ 38.48 | $ 36.27 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 119.28 | 77.28 | 40.52 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 44.70 | 37.98 | 34.21 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 70.48 | $ 43.75 | $ 41.11 | |
performance restricted stock units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 357,166 | 416,200 | 495,659 | 504,556 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 85,939 | 121,333 | 147,552 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (117,137) | (197,534) | (141,003) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (27,836) | (3,258) | (15,446) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 66.96 | $ 47.38 | $ 37.43 | $ 36.91 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 116.92 | 69.59 | 39.65 | |
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 | 35.69 | 38.15 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 45.23 | $ 69.03 | $ 35.20 |
Share-Based Compensation (Share
Share-Based Compensation (Share Repurchase Program) (Details) - USD ($) | 2 Months Ended | 12 Months Ended | ||
Mar. 19, 2020 | Feb. 01, 2020 | Feb. 02, 2019 | May 05, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchase Program, Authorized Amount | $ 100,000,000 | |||
Stock Repurchased and Retired During Period, Shares | 337,552 | 21,810 | ||
Stock Repurchased and Retired During Period, Value | $ 36,885,000 | $ 2,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 109.27 | $ 91.07 | ||
Subsequent Event [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchased and Retired During Period, Shares | 137,023 | |||
Stock Repurchased and Retired During Period, Value | $ 12,700,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 92.42 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Components) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Current: | |||
Federal | $ 25,069 | $ 33,297 | $ 45,867 |
State | 6,602 | 8,315 | 6,168 |
Current income tax expense (benefit) | 31,671 | 41,612 | 52,035 |
Deferred: | |||
Federal | 13,487 | 2,000 | 4,606 |
State | 1,355 | (1,450) | (243) |
Deferred income tax expense (benefit) | 14,842 | 550 | 4,363 |
Income tax expense | $ 46,513 | $ 42,162 | $ 56,398 |
Income Taxes (Schedule Of Inc_2
Income Taxes (Schedule Of Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal tax rate | 21.00% | 21.00% | 33.70% |
State taxes, net of federal benefit | 2.80% | 2.80% | 2.40% |
Other (1) | (2.80%) | (1.80%) | (0.60%) |
Effective tax rate | 21.00% | 22.00% | 35.50% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Deferred tax assets: | ||
Inventories | $ 13,182 | $ 9,633 |
Deferred revenue | 1,255 | 472 |
Accrued bonus | 1,007 | 3,553 |
Deferred rent | 0 | 24,136 |
Deferred Tax Assets, Operating Loss Carryforwards | 242,432 | 0 |
Other | 5,208 | 4,848 |
Deferred tax assets | 263,084 | 42,642 |
Deferred tax liabilities: | ||
Property and equipment | (55,953) | (35,642) |
Deferred Tax Liabilities, Leasing Arrangements | (214,935) | 0 |
Other | (912) | (874) |
Deferred Tax Liabilities, Gross | (271,800) | (36,516) |
Deferred tax liabilities | $ (8,716) | |
Deferred tax assets (liabilities) | $ 6,126 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||
Accrual for uncertain tax, interest or penalties | $ 0 | ||
Income Tax [Line Items] | |||
Effective Income Tax Rate Reconciliation, Percent | 21.00% | 22.00% | 35.50% |
Deferred Income Tax Expense (Benefit) | $ 14,842,000 | $ 550,000 | $ 4,363,000 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 33.70% |
Deferred Tax Assets, Deferred Income | $ 1,255,000 | $ 472,000 | |
Deferred Federal Income Tax Expense (Benefit) | $ 13,487,000 | $ 2,000,000 | $ 4,606,000 |
Minimum [Member] | |||
Income Tax [Line Items] | |||
State income taxes, statute of limitations period (years) | 3 years | ||
Maximum [Member] | |||
Income Tax [Line Items] | |||
State income taxes, statute of limitations period (years) | 4 years |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Retirement Benefits [Abstract] | |||
Discretionary matching and profit sharing contributions, vesting period | 5 years | ||
Employer discretionary contribution amount | $ 2.9 | $ 1.2 | $ 0.5 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 12 Months Ended |
Feb. 01, 2020segment | |
Segment Reporting [Abstract] | |
Operating segment | 1 |
Reportable segment | 1 |
Segment Reporting (Percentage o
Segment Reporting (Percentage of Net Sales Represented by Each Product Group) (Details) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Revenue from External Customer [Line Items] | |||
Percentage of sales by product group (percent) | 100.00% | 100.00% | 100.00% |
Leisure [Member] | |||
Revenue from External Customer [Line Items] | |||
Percentage of sales by product group (percent) | 49.80% | 50.90% | 50.10% |
Fashion And Home [Member] | |||
Revenue from External Customer [Line Items] | |||
Percentage of sales by product group (percent) | 31.30% | 30.90% | 31.60% |
Party And Snack [Member] | |||
Revenue from External Customer [Line Items] | |||
Percentage of sales by product group (percent) | 18.90% | 18.20% | 18.30% |
Quarterly Results of Operatio_3
Quarterly Results of Operations and Seasonality (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 687,130 | $ 377,438 | $ 417,400 | $ 364,762 | $ 602,684 | $ 312,823 | $ 347,734 | $ 296,322 | $ 1,846,730 | $ 1,559,563 | $ 1,278,208 |
Gross profit | 289,128 | 118,682 | 146,171 | 119,985 | 244,005 | 102,090 | 121,752 | 97,238 | 673,966 | 565,085 | 463,413 |
Net income | $ 110,374 | $ 10,189 | $ 28,831 | $ 25,662 | $ 89,262 | $ 13,516 | $ 25,063 | $ 21,804 | $ 175,056 | $ 149,645 | $ 102,451 |
Basic (loss) income per common share (dollars per share) | $ 1.98 | $ 0.18 | $ 0.52 | $ 0.46 | $ 1.60 | $ 0.24 | $ 0.45 | $ 0.39 | $ 3.14 | $ 2.68 | $ 1.86 |
Diluted (loss) income per common share (dollars per share) | $ 1.97 | $ 0.18 | $ 0.51 | $ 0.46 | $ 1.59 | $ 0.24 | $ 0.45 | $ 0.39 | $ 3.12 | $ 2.66 | $ 1.84 |