Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 30, 2022 | Jun. 08, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Entity Registrant Name | Five Below, Inc. | |
Document Period End Date | Apr. 30, 2022 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-35600 | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 75-3000378 | |
Entity Address, Address Line One | 701 Market Street | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Philadelphia | |
Entity Address, State or Province | PA | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | FIVE | |
Security Exchange Name | NASDAQ | |
Entity Central Index Key | 0001177609 | |
Current Fiscal Year End Date | --01-28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Address, Postal Zip Code | 19106 | |
City Area Code | 215 | |
Local Phone Number | 546-7909 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 55,490,140 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 |
Current assets: | |||
Cash and cash equivalents | $ 120,501,000 | $ 64,973,000 | $ 84,170,000 |
Short-term investment securities | 189,140,000 | 277,141,000 | 299,289,000 |
Inventories | 504,182,000 | 455,104,000 | 326,710,000 |
Prepaid income taxes and tax receivable | 4,511,000 | 11,325,000 | 2,248,000 |
Prepaid expenses and other current assets | 87,280,000 | 96,196,000 | 55,175,000 |
Total current assets | 905,614,000 | 904,739,000 | 767,592,000 |
Property and equipment, net of accumulated depreciation and amortization of $387,168, $363,254, and $297,322, respectively. | 799,765,000 | 777,497,000 | 624,775,000 |
Operating lease assets | 1,232,246,000 | 1,151,395,000 | 1,023,883,000 |
Other assets | 12,973,000 | 9,112,000 | 18,794,000 |
Total assets | 2,960,780,000 | 2,880,460,000 | 2,443,728,000 |
Current liabilities: | |||
Line of credit | 0 | 0 | 0 |
Accounts payable | 230,282,000 | 196,461,000 | 169,392,000 |
Income taxes payable | 35,767,000 | 28,096,000 | 7,831,000 |
Accrued salaries and wages | 13,089,000 | 53,539,000 | 26,942,000 |
Other accrued expenses | 140,849,000 | 145,268,000 | 114,252,000 |
Operating lease liabilities | 174,400,000 | 163,537,000 | 147,176,000 |
Total current liabilities | 594,387,000 | 586,901,000 | 465,593,000 |
Other long-term liabilities | 3,807,000 | 1,663,000 | 1,048,000 |
Long-term operating lease liabilities | 1,209,785,000 | 1,135,456,000 | 1,014,768,000 |
Deferred income taxes | 37,859,000 | 36,156,000 | 31,677,000 |
Total liabilities | 1,845,838,000 | 1,760,176,000 | 1,513,086,000 |
Commitments and contingencies (note 6) | |||
Shareholders’ equity: | |||
Common stock, $0.01 par value. Authorized 120,000,000 shares; issued and outstanding 55,491,361, 55,662,400, and 55,994,069 shares, respectively. | 555,000 | 556,000 | 560,000 |
Additional paid-in capital | 242,607,000 | 280,666,000 | 320,234,000 |
Retained earnings | 871,780,000 | 839,062,000 | 609,848,000 |
Total shareholders’ equity | 1,114,942,000 | 1,120,284,000 | 930,642,000 |
Total liabilities and shareholders' equity (deficit) | 2,960,780,000 | 2,880,460,000 | 2,443,728,000 |
Long-term investment securities | $ 10,182,000 | $ 37,717,000 | $ 8,684,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 |
Statement of Financial Position [Abstract] | |||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 387,168 | $ 363,254 | $ 297,322 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 55,491,361 | 55,662,400 | 55,994,069 |
Common stock, shares outstanding (in shares) | 55,491,361 | 55,662,400 | 55,994,069 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 639,596 | $ 597,823 |
Cost of goods sold | 432,819 | 396,954 |
Gross profit | 206,777 | 200,869 |
Selling, general and administrative expenses | 164,448 | 137,182 |
Operating income | 42,329 | 63,687 |
Interest (expense) income and other (expense) income, net | (237) | (977) |
Income before income taxes | 42,092 | 62,710 |
Income tax expense | 9,374 | 13,114 |
Net income | $ 32,718 | $ 49,596 |
Basic income per common share (dollars per share) | $ 0.59 | $ 0.89 |
Diluted income per common share (dollars per share) | $ 0.59 | $ 0.88 |
Weighted average shares outstanding: | ||
Basic shares | 55,647,200 | 55,970,620 |
Diluted shares | 55,834,287 | 56,274,491 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) | Total | Unrestricted stock | Common stock | Common stockUnrestricted stock | Additional paid-in capital | Additional paid-in capitalUnrestricted stock | Retained earnings |
Balance, common stock, shares at Jan. 30, 2021 | 55,935,237 | ||||||
Balance at Jan. 30, 2021 | $ 881,886,000 | $ 559,000 | $ 321,075,000 | $ 560,252,000 | |||
Share-based compensation expense and issuance of unrestricted stock awards | 5,695,000 | $ 81,000 | 5,695,000 | $ 81,000 | |||
Issuance of unrestricted stock awards (in shares) | 92,914 | 400 | |||||
Exercise of options to purchase common stock (in shares) | 200 | ||||||
Exercise of options to purchase common stock | 6,000 | $ 0 | 6,000 | ||||
Vesting of restricted stock units and performance-based restricted stock units | 1,000 | $ 1,000 | |||||
Common Shares Withheld for Taxes | 34,682 | ||||||
Common shares withheld for taxes | 6,623,000 | $ 0 | 6,623,000 | ||||
Net income | $ 49,596,000 | 49,596,000 | |||||
Balance, common stock, shares at May. 01, 2021 | 55,994,069 | 55,994,069 | |||||
Balance at May. 01, 2021 | $ 930,642,000 | $ 560,000 | 320,234,000 | 609,848,000 | |||
Balance, common stock, shares at Jan. 30, 2021 | 55,935,237 | ||||||
Balance at Jan. 30, 2021 | $ 881,886,000 | $ 559,000 | 321,075,000 | 560,252,000 | |||
Repurchase and retirement of common stock (in shares) | (368,699) | ||||||
Repurchase and retirement of common stock | $ (60,000,000) | ||||||
Balance, common stock, shares at Jan. 29, 2022 | 55,662,400 | 55,662,400 | |||||
Balance at Jan. 29, 2022 | $ 1,120,284,000 | $ 556,000 | 280,666,000 | 839,062,000 | |||
Share-based compensation expense and issuance of unrestricted stock awards | 5,857,000 | $ 117,000 | 5,857,000 | $ 117,000 | |||
Issuance of unrestricted stock awards (in shares) | 718 | ||||||
Exercise of options to purchase common stock (in shares) | 2,402 | ||||||
Exercise of options to purchase common stock | 79,000 | $ 0 | 79,000 | ||||
Vesting of restricted and performance-based stock units (in shares) | 99,124 | ||||||
Vesting of restricted stock units and performance-based restricted stock units | 1,000 | $ 1,000 | |||||
Common Shares Withheld for Taxes | 26,151 | ||||||
Common shares withheld for taxes | $ 4,107,000 | $ 0 | 4,107,000 | ||||
Repurchase and retirement of common stock (in shares) | (247,132) | (247,132) | |||||
Repurchase and retirement of common stock | $ (40,007,000) | $ 2,000 | (40,005,000) | ||||
Net income | $ 32,718,000 | 32,718,000 | |||||
Balance, common stock, shares at Apr. 30, 2022 | 55,491,361 | 55,491,361 | |||||
Balance at Apr. 30, 2022 | $ 1,114,942,000 | $ 555,000 | $ 242,607,000 | $ 871,780,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Operating activities: | ||
Net income | $ 32,718 | $ 49,596 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 23,977 | 19,237 |
Share-based compensation expense | 5,998 | 5,797 |
Deferred income tax expense | 1,703 | 2,766 |
Other non-cash (income) expenses | (455) | 176 |
Changes in operating assets and liabilities: | ||
Inventories | (49,078) | (45,443) |
Prepaid income taxes and tax receivable | 6,814 | 4,102 |
Prepaid expenses and other assets | 4,878 | 3,333 |
Accounts payable | 33,883 | 30,863 |
Income taxes payable | 7,671 | 5,806 |
Accrued salaries and wages | (40,450) | (16,503) |
Operating leases | 4,341 | 3,594 |
Other accrued expenses | 10,117 | 3,418 |
Net cash provided by operating activities | 42,117 | 66,742 |
Investing activities: | ||
Purchases of investment securities and other investments | (5,005) | (232,437) |
Sales, maturities, and redemptions of investment securities | 120,541 | 64,142 |
Capital expenditures | (58,091) | (76,444) |
Net cash provided by (used in) investing activities | 57,445 | (244,739) |
Financing activities: | ||
Repurchase and retirement of common stock | (40,007) | 0 |
Proceeds from exercise of options to purchase common stock and vesting of restricted and performance-based restricted stock units | 80 | 7 |
Common shares withheld for taxes | (4,107) | (6,623) |
Net cash used in financing activities | (44,034) | (6,616) |
Net increase (decrease) in cash and cash equivalents | 55,528 | (184,613) |
Cash and cash equivalents at beginning of period | 64,973 | 268,783 |
Cash and cash equivalents at end of period | 120,501 | 84,170 |
Supplemental disclosures of cash flow information: | ||
(Decrease) increase in accrued purchases of property and equipment | $ 12,478 | $ 2,216 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting PoliciesDescription 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 April 30, 2022, operated in 40 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, Arizona, Nevada, Colorado, Utah and New Mexico. As of April 30, 2022 and May 1, 2021, the Company operated 1,225 stores and 1,087 stores, respectively, each operating under the name “Five Below,” and sells merchandise on the internet, through the Company's fivebelow.com e-commerce website as well as with an on demand third party delivery service to enable our customers to shop online and receive convenient same day delivery. 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 are based upon the lowest level of input that is significant to the measurement. The Company’s financial instruments consist primarily of cash equivalents, investment securities, accounts payable, borrowings, if any, under a line of credit, equity method investments and notes receivable. The Company believes that: (1) the carrying value of cash equivalents and accounts payable are representative of their respective fair value due to the short-term nature of these instruments; and (2) the carrying value of the borrowings, if any, under the line of credit approximates fair value because the line of credit’s interest rates vary with market interest rates. Under the fair value hierarchy, the fair market values of 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 instruments are determined by management with the assistance of a third-party pricing service. Since quoted prices in active markets for identical assets are not available, these prices are determined by the third-party pricing service using observable market information such as quotes from less active markets and quoted prices of similar securities. As of April 30, 2022, January 29, 2022, and May 1, 2021, the Company had cash equivalents of $50.7 million , $41.3 million and $67.6 million, respectively. The Company’s cash equivalents consist of cash management solutions, credit and debit card receivables, money market funds, corporate bonds and municipal bonds with original maturities of 90 days or less. Fair value for cash equivalents was determined based on Level 1 inputs. As of April 30, 2022, January 29, 2022, and May 1, 2021, the Company's 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 April 30, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 159,145 $ — $ 1,134 $ 158,011 Municipal bonds 29,995 — 64 29,931 Total $ 189,140 $ — $ 1,198 $ 187,942 Long-term: Corporate bonds $ 10,182 $ — $ 205 $ 9,977 Total $ 10,182 $ — $ 205 $ 9,977 As of January 29, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 236,069 $ — $ 286 $ 235,783 Municipal bonds 41,072 — 44 41,028 Total $ 277,141 $ — $ 330 $ 276,811 Long-term: Corporate bonds $ 37,717 $ — $ 199 $ 37,518 Total $ 37,717 $ — $ 199 $ 37,518 As of May 1, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 246,179 $ — $ 125 $ 246,054 Municipal bonds 53,110 — 18 53,092 Total $ 299,289 $ — $ 143 $ 299,146 Long-term: Corporate bonds $ 7,025 $ — $ 19 $ 7,006 Municipal bonds 1,659 — 2 1,657 Total $ 8,684 $ — $ 21 $ 8,663 Prepaid expenses as of April 30, 2022, January 29, 2022, and May 1, 2021 were $29.4 million, $26.4 million, and $20.8 million, respectively. Other current assets as of April 30, 2022, January 29, 2022, and May 1, 2021 were $57.9 million, Other accrued expenses include accrued capital expenditures of $29.3 million , $41.7 million, and $31.5 million as of April 30, 2022, January 29, 2022, and May 1, 2021, respectively. |
Revenue from Contracts With Cus
Revenue from Contracts With Customers | 3 Months Ended |
Apr. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenue from Contracts with Customers 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 customer receives the product as control transfers upon delivery. Returns subsequent to the period end are immaterial; accordingly, no significant 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. As permitted by applicable accounting guidance, ASU 2014-09 "Revenue from Contracts with Customers," the Company has elected to exclude all sales taxes collected from customers and remitted to governmental authorities from net sales in the accompanying consolidated statements of operations. Disaggregation of Revenue The following table provides information about disaggregated revenue by groups of products: leisure, fashion and home, and party and snack (in thousands): Thirteen Weeks Ended Thirteen Weeks Ended April 30, 2022 May 1, 2021 Amount Percentage of Net Sales Amount Percentage of Net Sales Leisure $ 306,706 48.0 % $ 296,289 49.6 % Fashion and home 174,234 27.2 % 179,876 30.1 % Party and snack 158,656 24.8 % 121,658 20.3 % Total $ 639,596 100.0 % $ 597,823 100.0 % |
Leases
Leases | 3 Months Ended |
Apr. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases 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. During the thirteen weeks ended April 30, 2022, the Company committed to 43 new store leases with average terms of approximately 10 years that have future minimum lease payments of approximately $97.6 million. All of the Company's leases are classified as operating leases and the associated assets and liabilities are presented as separate captions in the consolidated balance sheets. As of April 30, 2022 and May 1, 2021, the weighted average remaining lease term for the Company's operating leases was 7.8 years and 7.9 years, respectively, and the weighted average discount rate was 5.2% and 6.0%, respectively. The following table is a summary of the Company's components for net lease costs (in thousands): Thirteen Weeks Ended Lease Cost April 30, 2022 May 1, 2021 Operating lease cost $ 55,164 $ 47,529 Variable lease cost 15,625 13,631 Net lease cost* $ 70,789 $ 61,160 * Excludes short-term lease cost, which is immaterial. The following table summarizes the maturity of lease liabilities under operating leases as of April 30, 2022 (in thousands): Maturity of Lease Liabilities Operating Leases 2021 $ 178,572 2022 233,864 2023 225,159 2024 210,462 2025 194,954 After 2025 612,295 Total lease payments 1,655,306 Less: imputed interest 271,121 Present value of lease liabilities $ 1,384,185 The following table summarizes the supplemental cash flow disclosures related to leases (in thousands): Thirteen Weeks Ended April 30, 2022 May 1, 2021 Cash paid for amounts included in the measurement of lease liabilities: Cash payments arising from operating lease liabilities (1) $ 50,531 $ 50,911 Supplemental non-cash information: Operating lease liabilities arising from obtaining right-of-use assets $ 98,333 $ 77,208 (1) Included within operating activities in the Company's Consolidated Statements of Cash Flows. |
Income Per Common Share
Income Per Common Share | 3 Months Ended |
Apr. 30, 2022 | |
Earnings Per Share [Abstract] | |
Income Per Common Share | Income Per Common ShareBasic income per common share amounts are calculated using the weighted average number of common shares outstanding for the period. Diluted income per common share amounts are calculated using the weighted average number of common shares outstanding for the period and include the dilutive impact of exercised stock options as well as assumed vesting of restricted stock awards and shares currently available for purchase under the Company's Employee Stock Purchase Plan, using the treasury stock method. Performance-based restricted stock units are considered contingently issuable shares for diluted income per common share purposes and the dilutive impact, if any, is not included in the weighted average shares until the performance conditions are met. The dilutive impact, if any, for performance-based restricted stock units, which are subject to market conditions based on the Company's total shareholder return relative to a pre-defined peer group, are included in the weighted average shares. The following table reconciles net income and the weighted average common shares outstanding used in the computations of basic and diluted income per common share (in thousands, except for share and per share data): Thirteen Weeks Ended April 30, 2022 May 1, 2021 Numerator: Net income $ 32,718 $ 49,596 Denominator: Weighted average common shares outstanding - basic 55,647,200 55,970,620 Dilutive impact of options, restricted stock units and employee stock purchase plan 187,087 303,871 Weighted average common shares outstanding - diluted 55,834,287 56,274,491 Per common share: Basic income per common share $ 0.59 $ 0.89 Diluted income per common share $ 0.59 $ 0.88 The effects of the assumed vesting of restricted stock units for 18,449 shares of common stock for the thirteen weeks ended April 30, 2022 were excluded from the calculation of diluted income per share, as their impact would have been anti-dilutive. The effects of the assumed vesting of restricted stock units for 412 shares of common stock for the thirteen weeks ended May 1, 2021 were excluded from the calculation of diluted income per share, as their impact would have been anti-dilutive. |
Line of Credit
Line of Credit | 3 Months Ended |
Apr. 30, 2022 | |
Debt Disclosure [Abstract] | |
Line of Credit | Line of Credit On January 27, 2021, the Company entered into a First Amendment to Credit Agreement (the "First Amendment") which amended the Fifth Amended and Restated Credit Agreement (as amended by the Fifth Amendment, the “Credit Agreement”) dated April 24, 2020 among the Company, 1616 Holdings, Inc., a wholly-owned subsidiary of the Company ("1616 Holdings" and together with the Company, the "Loan Parties"), Wells Fargo Bank, National Association as administrative agent (the “Agent”), and other lenders party thereto (the "Lenders"). The Credit Agreement provides for a secured asset-based revolving line of credit in the amount of up to $225.0 million (the "Revolving Credit Facility"). Advances under the Revolving Credit Facility are tied to a borrowing base consisting of eligible credit card receivables and inventory, as reduced by certain reserves in effect from time to time. Pursuant to the Credit Agreement, inventory appraisals and certain other diligence items are deferred, with reduced advance rates during the period that such appraisals have not been delivered. The Revolving Credit Facility expires on the earliest to occur of (i) April 24, 2023 or (ii) an event of default. The Revolving Credit Facility may be increased up to $150.0 million, subject to certain conditions, including obtaining commitments from one or more Lenders (the "Accordion"). Pursuant to the First Amendment, the Company obtained commitments from the Lenders that would allow the Company at its election (subject only to satisfaction of certain customary conditions such as the absence of any Event of Default), to increase the amount of the Revolving Credit Facility by an aggregate principal amount up to $50.0 million within the Accordion (the "Committed Increase"). The entire amount of the Revolving Credit Facility is available for the issuance of letters of credit and allows for swingline loans. The Credit Agreement provides that the interest rate payable on borrowings shall be, at the Company’s option, a per annum rate equal to (a) a base rate plus an applicable margin ranging from 0.25% to 0.75% or (b) a LIBOR rate plus a margin ranging from 1.25% to 1.75%. Letter of credit fees range from 1.25% to 1.75%. The interest rate and letter of credit fees under the Credit Agreement are subject to an increase of 2.00% per annum upon an event of default. The Credit Agreement contains customary covenants that limit, absent lender approval, the ability of the Company and certain of its affiliates to, among other things, pay cash dividends, incur debt, create liens and encumbrances, redeem or repurchase stock, enter into certain acquisition transactions with affiliates, merge, dissolve, repay certain indebtedness, change the nature of the Company’s business, enter sale or leaseback transactions, make investments or dispose of assets. In some cases, these restrictions are subject to certain negotiated exceptions or permit the Company to undertake otherwise restricted activities if it satisfies certain conditions. In addition, the Company will be required to maintain availability of not less than (i) 12.5% of the lesser of (x) aggregate commitments under the Revolving Credit Facility and (y) the borrowing base (the "loan cap") during the period that inventory appraisals have not been delivered as described above and (ii) at all other times 10.0% of the loan cap. If there exists an event of default or availability under the Revolving Credit Facility is less than 15% of the loan cap, amounts in any of the Loan Parties’ or subsidiary guarantors' designated deposit accounts will be transferred daily into a blocked account held by the Agent and applied to reduce outstanding amounts under the Revolving Credit Facility (the “Cash Dominion Event”), so long as (i) such event of default has not been waived and/or (ii) until availability has exceeded 15% of the loan cap for sixty (60) consecutive calendar days (provided that such ability to discontinue the Cash Dominion Event shall be limited to two times during the term of the Credit Agreement). The Credit Agreement contains customary events of default including, among other things, failure to pay obligations when due, initiation of bankruptcy or insolvency proceedings, defaults on certain other indebtedness, change of control, incurrence of certain material judgments that are not stayed, satisfied, bonded or discharged within 30 days, certain ERISA events, invalidity of the credit documents, and violation of affirmative and negative covenants or breach of representations and warranties set forth in the Credit Agreement. Amounts under the Revolving Credit Facility may become due upon events of default (subject to any applicable grace or cure periods). All obligations under the Revolving Credit Facility are guaranteed by 1616 Holdings and secured by substantially all of the assets of the Company and 1616 Holdings. As of April 30, 2022, the Company had no borrowings under the Revolving Credit Facility and had approximately $191 million available under the Revolving Credit Facility. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Other Contractual Commitments As of April 30, 2022, the Company has other purchase commitments of approximately $15.2 million consisting of purchase agreements for materials that will be used in the construction of new stores. In March 2021, the Company acquired land in Indianapolis, Indiana, to build an approximately 1,030,000 square foot distribution center to support the Company's anticipated growth. The total cost of the land and building is expected to be approximately $61 million, of which approxima tely $54 million has b een paid through April 30, 2022. The Company expects to occupy the distribution center in the first half of 2022. Contingencies Legal Matters |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Apr. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | 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 April 30, 2022, approximatel y 2.4 million stock options, restricted shares, or restricted stock units were available for grant. Common Stock Options All stock options have a term not greater than ten years. Stock options vest and become exercisable in whole or in part, in accordance with vesting conditions set by the Company’s Board of Directors. Options granted to date generally vest over four years from the date of grant. Stock option activity during the thirteen weeks ended April 30, 2022 was as follows: Options Weighted Weighted Balance as of January 29, 2022 39,763 $ 34.48 2.3 Granted — — Forfeited — — Exercised (2,402) 18.54 Balance as of April 30, 2022 37,361 35.50 2.1 Exercisable as of April 30, 2022 37,361 $ 35.50 2.1 Restricted Stock Units and Performance-Based Restricted Stock Units All restricted stock units ("RSU") and performance-based restricted stock units ("PSU") vest in accordance with vesting conditions set by the compensation committee of the Company’s Board of Directors. RSUs granted to date have vesting periods ranging from less than one year to five years from the date of grant and the fair value of RSUs is the market price of the underlying common stock on the date of grant. PSUs granted to date have vesting periods ranging from less than one year to five years from the date of grant. PSUs that have a performance condition are 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. The fair value of these PSUs is the market price of the underlying common stock on the date of grant. Compensation is recognized over the vesting period and adjusted for the probability of achievement of the performance criteria. PSUs that have a market condition based on our total shareholder return relative to a pre-defined peer group are subject to multi-year performance objectives with vesting periods of approximately three years from the date of grant (if the applicable performance objectives are achieved). The fair value of these PSUs are determined using a Monte Carlo valuation model. RSU and PSU activity during the thirteen weeks ended April 30, 2022 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 29, 2022 254,295 $ 126.93 349,236 $ 163.16 Granted 86,566 146.17 127,598 165.90 Vested (99,124) 101.85 — — Forfeited (9,027) 138.01 (7,654) 161.29 Non-vested balance as of April 30, 2022 232,710 $ 136.36 469,180 $ 126.50 In connection with the vesting of RSUs and PSUs during the thirteen weeks ended April 30, 2022, the Company withheld 26,151 shares with an aggregate value of $4.1 million in sat isfaction of minimum tax withholding obligations due upon vesting. In connection with the vesting of RSUs and PSUs during the thirteen weeks ended May 1, 2021, the Company withheld 34,682 shares with an aggregate value of $6.6 million in satisfaction of minimum tax withholding obligations due upon vesting. As of April 30, 2022, there wa s $51.9 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 2.6 years. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table summarizes the Company’s income tax expense and effective tax rates for the thirteen weeks ended April 30, 2022 and May 1, 2021 (dollars in thousands): Thirteen Weeks Ended April 30, 2022 May 1, 2021 Income before income taxes $ 42,092 $ 62,710 Income tax expense $ 9,374 $ 13,114 Effective tax rate 22.3 % 20.9 % The effective tax rates for the thirteen weeks ended April 30, 2022 and May 1, 2021 were based on the Company’s forecasted annualized effective tax rates and were adjusted for discrete items that occurred within the periods presented. The effective tax rate for the thirteen weeks ended April 30, 2022 was higher than the thirteen weeks ended May 1, 2021 primarily due to discrete items, which includes the impact of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting" with respect to the requirement to recognize excess income tax benefits or deficiencies as income tax benefit or expense in the Company's consolidated statements of operations. The Company had no material accrual for uncertain tax positions or interest and/or penalties related to income taxes on the Company’s balance sheets as of April 30, 2022, January 29, 2022, or May 1, 2021 and has not recognized any material uncertain tax positions or interest and/or penalties related to income taxes in the consolidated statements of operations for the thirteen weeks ended April 30, 2022 or May 1, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 30, 2022 | |
Accounting Policies [Abstract] | |
Nature of Business | 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 April 30, 2022, operated in 40 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, Arizona, Nevada, Colorado, Utah and New Mexico. As of April 30, 2022 and May 1, 2021, the Company operated 1,225 stores and 1,087 stores, respectively, each operating under the name “Five Below,” and sells merchandise on the internet, through the Company's fivebelow.com e-commerce website as well as with an on demand third party delivery service to enable our customers to shop online and receive convenient same day delivery. |
Fiscal Year | Fiscal YearThe Company operates on a 52/53-week fiscal year ending on the Saturday closest to January 31. References to "fiscal year 2022" or "fiscal 2022" refer to the period from January 30, 2022 to January 28, 2023, which is a 52-week fiscal year. References to "fiscal year 2021" or "fiscal 2021" refer to the period from January 31, 2021 to January 29, 2022, which is a 52-week fiscal year. The fiscal quarters ended April 30, 2022 and May 1, 2021 refer to the thirteen weeks ended as of those dates. |
Basis of Presentation | Basis of PresentationThe consolidated balance sheets as of April 30, 2022 and May 1, 2021, the consolidated statements of operations for the thirteen weeks ended April 30, 2022 and May 1, 2021, the consolidated statements of shareholders’ equity for the thirteen weeks ended April 30, 2022 and May 1, 2021 and the consolidated statements of cash flows for the thirteen weeks ended April 30, 2022 and May 1, 2021 have been prepared by the Company in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim reporting and are unaudited. In the opinion of management, the aforementioned financial statements include all known adjustments (which consist primarily of normal, recurring accruals, estimates and assumptions that impact the financial statements) necessary to present fairly the financial position at the balance sheet dates and the results of operations and cash flows for the periods ended April 30, 2022 and May 1, 2021. The balance sheet as of January 29, 2022, presented herein, has been derived from the audited balance sheet included in the Company's Annual Report on Form 10-K for fiscal 2021 as filed with the Securities and Exchange Commission on March 30, 2022 and referred to herein as the “Annual Report,” but does not include all annual disclosures required by U.S. GAAP. These consolidated financial statements should be read in conjunction with the consolidated financial statements for the fiscal year ended January 29, 2022 and footnotes thereto included in the Annual Report. The consolidated results of operations for the thirteen weeks ended April 30, 2022 and May 1, 2021 are not necessarily indicative of the consolidated operating results for the year ending January 28, 2023 or any other period. The Company's business is seasonal and as a result, the Company's net sales fluctuate from quarter to quarter. Net sales are usually highest in the fourth fiscal quarter due to the year-end holiday season. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting PronouncementsIn March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04"). The pronouncement provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating the impact the adoption of ASU 2020-04 will have on its consolidated financial statements. |
Use of Estimates | Use of EstimatesThe preparation of the consolidated financial statements requires management of the Company to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, net realizable value for inventories, income taxes, share-based compensation expense, the incremental borrowing rate utilized in operating lease liabilities, equity method investments and notes receivable. |
Fair Value of Financial Instruments | 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 are based upon the lowest level of input that is significant to the measurement. The Company’s financial instruments consist primarily of cash equivalents, investment securities, accounts payable, borrowings, if any, under a line of credit, equity method investments and notes receivable. The Company believes that: (1) the carrying value of cash equivalents and accounts payable are representative of their respective fair value due to the short-term nature of these instruments; and (2) the carrying value of the borrowings, if any, under the line of credit approximates fair value because the line of credit’s interest rates vary with market interest rates. Under the fair value hierarchy, the fair market values of 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 instruments are determined by management with the assistance of a third-party pricing service. Since quoted prices in active markets for identical assets are not available, these prices are determined by the third-party pricing service using observable market information such as quotes from less active markets and quoted prices of similar securities. As of April 30, 2022, January 29, 2022, and May 1, 2021, the Company had cash equivalents of $50.7 million , $41.3 million and $67.6 million, respectively. The Company’s cash equivalents consist of cash management solutions, credit and debit card receivables, money market funds, corporate bonds and municipal bonds with original maturities of 90 days or less. Fair value for cash equivalents was determined based on Level 1 inputs. As of April 30, 2022, January 29, 2022, and May 1, 2021, the Company's 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 April 30, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 159,145 $ — $ 1,134 $ 158,011 Municipal bonds 29,995 — 64 29,931 Total $ 189,140 $ — $ 1,198 $ 187,942 Long-term: Corporate bonds $ 10,182 $ — $ 205 $ 9,977 Total $ 10,182 $ — $ 205 $ 9,977 As of January 29, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 236,069 $ — $ 286 $ 235,783 Municipal bonds 41,072 — 44 41,028 Total $ 277,141 $ — $ 330 $ 276,811 Long-term: Corporate bonds $ 37,717 $ — $ 199 $ 37,518 Total $ 37,717 $ — $ 199 $ 37,518 As of May 1, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 246,179 $ — $ 125 $ 246,054 Municipal bonds 53,110 — 18 53,092 Total $ 299,289 $ — $ 143 $ 299,146 Long-term: Corporate bonds $ 7,025 $ — $ 19 $ 7,006 Municipal bonds 1,659 — 2 1,657 Total $ 8,684 $ — $ 21 $ 8,663 Short-term investment securities as of April 30, 2022, January 29, 2022, and May 1, 2021 all mature in one year or less. Long-term investment securities as of April 30, 2022, January 29, 2022, and May 1, 2021 all mature after one year but in less than three years. |
Revenue Transactions | Revenue from Contracts with Customers 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 customer receives the product as control transfers upon delivery. Returns subsequent to the period end are immaterial; accordingly, no significant 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. As permitted by applicable accounting guidance, ASU 2014-09 "Revenue from Contracts with Customers," the Company has elected to exclude all sales taxes collected from customers and remitted to governmental authorities from net sales in the accompanying consolidated statements of operations. Disaggregation of Revenue The following table provides information about disaggregated revenue by groups of products: leisure, fashion and home, and party and snack (in thousands): Thirteen Weeks Ended Thirteen Weeks Ended April 30, 2022 May 1, 2021 Amount Percentage of Net Sales Amount Percentage of Net Sales Leisure $ 306,706 48.0 % $ 296,289 49.6 % Fashion and home 174,234 27.2 % 179,876 30.1 % Party and snack 158,656 24.8 % 121,658 20.3 % Total $ 639,596 100.0 % $ 597,823 100.0 % |
Deferred Compensation | The Five Below, Inc. Nonqualified Deferred Compensation Plan (the "Deferred Comp Plan") and a related, irrevocable grantor trust (the "Trust") provides eligible key employees with the opportunity to elect to defer up to 80% of their eligible compensation. The Company may make discretionary contributions, at the discretion of the Board. Payments under the Deferred Comp Plan will be made from the general assets of the Company or from the assets of the Trust, funded by the Company. The related liability is recorded as deferred compensation and included in other long-term liabilities in the consolidated balance sheets. |
Equity Method Investments | Equity Method InvestmentsThe 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 that is less than its carrying value. |
SEC Schedule, Article 12-04, Co
SEC Schedule, Article 12-04, Condensed Financial Information of Registrant (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Debt Securities, Held-to-maturity | Such securities are carried at amortized cost plus accrued interest and consist of the following (in thousands): As of April 30, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 159,145 $ — $ 1,134 $ 158,011 Municipal bonds 29,995 — 64 29,931 Total $ 189,140 $ — $ 1,198 $ 187,942 Long-term: Corporate bonds $ 10,182 $ — $ 205 $ 9,977 Total $ 10,182 $ — $ 205 $ 9,977 As of January 29, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 236,069 $ — $ 286 $ 235,783 Municipal bonds 41,072 — 44 41,028 Total $ 277,141 $ — $ 330 $ 276,811 Long-term: Corporate bonds $ 37,717 $ — $ 199 $ 37,518 Total $ 37,717 $ — $ 199 $ 37,518 As of May 1, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 246,179 $ — $ 125 $ 246,054 Municipal bonds 53,110 — 18 53,092 Total $ 299,289 $ — $ 143 $ 299,146 Long-term: Corporate bonds $ 7,025 $ — $ 19 $ 7,006 Municipal bonds 1,659 — 2 1,657 Total $ 8,684 $ — $ 21 $ 8,663 |
Revenue from Contracts With C_2
Revenue from Contracts With Customers (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregation of Revenue The following table provides information about disaggregated revenue by groups of products: leisure, fashion and home, and party and snack (in thousands): Thirteen Weeks Ended Thirteen Weeks Ended April 30, 2022 May 1, 2021 Amount Percentage of Net Sales Amount Percentage of Net Sales Leisure $ 306,706 48.0 % $ 296,289 49.6 % Fashion and home 174,234 27.2 % 179,876 30.1 % Party and snack 158,656 24.8 % 121,658 20.3 % Total $ 639,596 100.0 % $ 597,823 100.0 % |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Leases [Abstract] | |
Components of net lease cost | The following table is a summary of the Company's components for net lease costs (in thousands): Thirteen Weeks Ended Lease Cost April 30, 2022 May 1, 2021 Operating lease cost $ 55,164 $ 47,529 Variable lease cost 15,625 13,631 Net lease cost* $ 70,789 $ 61,160 The following table summarizes the supplemental cash flow disclosures related to leases (in thousands): Thirteen Weeks Ended April 30, 2022 May 1, 2021 Cash paid for amounts included in the measurement of lease liabilities: Cash payments arising from operating lease liabilities (1) $ 50,531 $ 50,911 Supplemental non-cash information: Operating lease liabilities arising from obtaining right-of-use assets $ 98,333 $ 77,208 (1) Included within operating activities in the Company's Consolidated Statements of Cash Flows. |
Maturity of lease liabilities under operating leases | The following table summarizes the maturity of lease liabilities under operating leases as of April 30, 2022 (in thousands): Maturity of Lease Liabilities Operating Leases 2021 $ 178,572 2022 233,864 2023 225,159 2024 210,462 2025 194,954 After 2025 612,295 Total lease payments 1,655,306 Less: imputed interest 271,121 Present value of lease liabilities $ 1,384,185 |
Income Per Common Share (Tables
Income Per Common Share (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Earnings Per Share [Abstract] | |
Computations Of Basic And Diluted Income (Loss) Per Share | The following table reconciles net income and the weighted average common shares outstanding used in the computations of basic and diluted income per common share (in thousands, except for share and per share data): Thirteen Weeks Ended April 30, 2022 May 1, 2021 Numerator: Net income $ 32,718 $ 49,596 Denominator: Weighted average common shares outstanding - basic 55,647,200 55,970,620 Dilutive impact of options, restricted stock units and employee stock purchase plan 187,087 303,871 Weighted average common shares outstanding - diluted 55,834,287 56,274,491 Per common share: Basic income per common share $ 0.59 $ 0.89 Diluted income per common share $ 0.59 $ 0.88 The effects of the assumed vesting of restricted stock units for 18,449 shares of common stock for the thirteen weeks ended April 30, 2022 were excluded from the calculation of diluted income per share, as their impact would have been anti-dilutive. The effects of the assumed vesting of restricted stock units for 412 shares of common stock for the thirteen weeks ended May 1, 2021 were excluded from the calculation of diluted income per share, as their impact would have been anti-dilutive. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | Stock option activity during the thirteen weeks ended April 30, 2022 was as follows: Options Weighted Weighted Balance as of January 29, 2022 39,763 $ 34.48 2.3 Granted — — Forfeited — — Exercised (2,402) 18.54 Balance as of April 30, 2022 37,361 35.50 2.1 Exercisable as of April 30, 2022 37,361 $ 35.50 2.1 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | RSU and PSU activity during the thirteen weeks ended April 30, 2022 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 29, 2022 254,295 $ 126.93 349,236 $ 163.16 Granted 86,566 146.17 127,598 165.90 Vested (99,124) 101.85 — — Forfeited (9,027) 138.01 (7,654) 161.29 Non-vested balance as of April 30, 2022 232,710 $ 136.36 469,180 $ 126.50 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The following table summarizes the Company’s income tax expense and effective tax rates for the thirteen weeks ended April 30, 2022 and May 1, 2021 (dollars in thousands): Thirteen Weeks Ended April 30, 2022 May 1, 2021 Income before income taxes $ 42,092 $ 62,710 Income tax expense $ 9,374 $ 13,114 Effective tax rate 22.3 % 20.9 % |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Nature of Business) (Details) | 3 Months Ended | |
Apr. 30, 2022USD ($)Storesstate | May 01, 2021Stores | |
Accounting Policies [Abstract] | ||
Products offering price, maximum price | $ | $ 5 | |
Number of states in which entity operates (state) | state | 40 | |
Number of company operated stores | Stores | 1,225 | 1,087 |
Deferred Compensation Arrangement With individual, Percent Of Gross Pay | 80.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 |
Significant Accounting Policies [Line Items] | |||
Amortized Cost | $ 189,140 | $ 277,141 | $ 299,289 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | 1,198 | 330 | 143 |
Fair Market Value | 187,942 | 276,811 | 299,146 |
Other Long-term Investments | |||
Significant Accounting Policies [Line Items] | |||
Amortized Cost | 10,182 | 37,717 | 8,684 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | 205 | 199 | 21 |
Fair Market Value | 9,977 | 37,518 | 8,663 |
Fair Value, Inputs, Level 1 | |||
Significant Accounting Policies [Line Items] | |||
Cash equivalents | 50,700 | 41,300 | 67,600 |
Corporate bonds | Fair Value, Inputs, Level 2 | |||
Significant Accounting Policies [Line Items] | |||
Amortized Cost | 159,145 | 236,069 | 246,179 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | 1,134 | 286 | 125 |
Fair Market Value | 158,011 | 235,783 | 246,054 |
Corporate bonds | Fair Value, Inputs, Level 2 | Other Long-term Investments | |||
Significant Accounting Policies [Line Items] | |||
Amortized Cost | 10,182 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 205 | ||
Fair Market Value | 9,977 | ||
Municipal bonds | Fair Value, Inputs, Level 2 | |||
Significant Accounting Policies [Line Items] | |||
Amortized Cost | 29,995 | 41,072 | 53,110 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | 64 | 44 | 18 |
Fair Market Value | $ 29,931 | 41,028 | 53,092 |
Corporate bonds | Fair Value, Inputs, Level 2 | |||
Significant Accounting Policies [Line Items] | |||
Amortized Cost | 37,717 | 7,025 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 199 | 19 | |
Fair Market Value | $ 37,518 | 7,006 | |
Municipal bonds | Fair Value, Inputs, Level 2 | |||
Significant Accounting Policies [Line Items] | |||
Amortized Cost | 1,659 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 2 | ||
Fair Market Value | $ 1,657 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Prepaid expenses and OCA (Details) - USD ($) $ in Millions | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Prepaid expense | $ 29.4 | $ 26.4 | $ 20.8 |
Other current assets | $ 57.9 | $ 69.8 | $ 34.4 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Other Accrued Expenses (Details) - USD ($) $ in Millions | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 |
Payables and Accruals [Abstract] | |||
Other accrued expenses | $ 29.3 | $ 41.7 | $ 31.5 |
Revenue from Contracts With C_3
Revenue from Contracts With Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Net sales | $ 639,596 | $ 597,823 |
Net sales as a percentage of net sales | 100.00% | 100.00% |
Leisure | ||
Net sales | $ 306,706 | $ 296,289 |
Net sales as a percentage of net sales | 48.00% | 49.60% |
Fashion and home | ||
Net sales | $ 174,234 | $ 179,876 |
Net sales as a percentage of net sales | 27.20% | 30.10% |
Total | ||
Net sales | $ 158,656 | $ 121,658 |
Net sales as a percentage of net sales | 24.80% | 20.30% |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended | |
Apr. 30, 2022USD ($)lease | May 01, 2021 | |
Lessee, Lease, Description [Line Items] | ||
Number of leases (lease) | lease | 43 | |
Long-term purchase commitment, amount | $ | $ 97.6 | |
Operating lease, weighted average remaining lease term (years) | 7 years 9 months 18 days | 7 years 10 months 24 days |
Operating lease, weighted average discount rate, percent | 520.00% | 600.00% |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, term of contracts (years) | 10 years |
Leases - Components of Net Leas
Leases - Components of Net Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 55,164 | $ 47,529 |
Variable lease cost | 15,625 | 13,631 |
Net lease cost* | $ 70,789 | $ 61,160 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities Under Operating Leases (Details) $ in Thousands | Apr. 30, 2022USD ($) |
Leases [Abstract] | |
2021 | $ 178,572 |
2022 | 233,864 |
2023 | 225,159 |
2024 | 210,462 |
2025 | 194,954 |
After 2025 | 612,295 |
Total lease payments | 1,655,306 |
Less: imputed interest | 271,121 |
Present value of lease liabilities | $ 1,384,185 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Cash payments arising from operating lease liabilities | $ 50,531 | $ 50,911 |
Supplemental non-cash information: | ||
Operating lease liabilities arising from obtaining right-of-use assets | $ 98,333 | $ 77,208 |
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 | |
Apr. 30, 2022 | May 01, 2021 | |
Numerator: | ||
Net income | $ 32,718 | $ 49,596 |
Denominator: | ||
Weighted-average common shares outstanding - basic (shares) | 55,647,200 | 55,970,620 |
Dilutive impact of options and warrants (shares) | 187,087 | 303,871 |
Weighted average common share outstanding - diluted (shares) | 55,834,287 | 56,274,491 |
Per common share: | ||
Basic income (loss) per common share (dollars per share) | $ 0.59 | $ 0.89 |
Diluted income per common share (dollars per share) | $ 0.59 | $ 0.88 |
Income Per Common Share (Narrat
Income Per Common Share (Narrative) (Details) - shares | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock not included in the computations of diluted earnings per share | 18,449 | 412 |
Line of Credit (Line of Credit)
Line of Credit (Line of Credit) (Details) - Line of Credit - Amended Revolving Credit Facility - USD ($) | Jan. 27, 2021 | Apr. 30, 2022 |
Debt Instrument [Line Items] | ||
Revolving credit facility maximum borrowings | $ 225,000,000 | |
Line of credit facility, accordion feature, increase limit | $ 150,000,000 | |
Debt instrument, interest rate, increase (decrease) | 2.00% | |
Minimum availability of aggregate commitments and loan cap required, percent | 12.50% | |
Minimum availability of loan cap after stepdown date required, percent | 10.00% | |
Period required for availability of loan cap requirement | 60 days | |
Maximum allowed to be borrowed based on available cash balance | $ 50,000,000 | |
Line of credit facility, current borrowing capacity | $ 0 | |
Line of credit facility, remaining borrowing capacity | $ 191,000,000 | |
Minimum Availability Of Aggregate Commitments And Loan Cap Required In Event Of Default Or Availability, Percent | 15.00% | |
Minimum | ||
Debt Instrument [Line Items] | ||
Commitment fee percentage | 1.25% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Commitment fee percentage | 1.75% | |
Base Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate on borrowings (percent) | 0.25% | |
Base Rate | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate on borrowings (percent) | 0.75% | |
LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate on borrowings (percent) | 1.25% | |
LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate on borrowings (percent) | 1.75% |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) ft² in Thousands, $ in Millions | 3 Months Ended |
Apr. 30, 2022USD ($)ft² | |
Purchase commitment, remaining minimum amount committed | $ 15.2 |
Distribution Center In Indianapolis, Indiana | |
Area of real estate property (in sqft) | ft² | 1,030 |
Payments to acquire buildings | $ 54 |
Expected payments to purchase land and construct building | $ 61 |
Share-Based Compensation (2002
Share-Based Compensation (2002 Equity Incentive Plan) (Details) - 2002 Equity Incentive Plan - shares | Apr. 30, 2022 | 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) | 2,400,000 |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule Of Stock Option Activity Under Plan) (Details) - $ / shares | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Share-based Payment Arrangement [Abstract] | ||
Stock option maximum term (years) | 10 years | |
Stock option vesting period (years) | 4 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options outstanding, Balance (shares) | 39,763 | |
Options outstanding, Forfeited (shares) | 0 | |
Options outstanding, Exercised (shares) | (2,402) | |
Options outstanding, Balance (shares) | 37,361 | |
Options outstanding, Exercisable (shares) | 37,361 | |
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) | $ 34,480 | |
Weighted average exercise price, Exercised (dollars per share) | 18,540 | |
Weighted average exercise price, Forfeited (dollars per share) | 0 | |
Weighted average exercise price, Balance (dollars per share) | $ 35,500 | |
Weighted Average Remaining Contractual Term (in years) | 2 years 1 month 6 days | 2 years 3 months 18 days |
Weighted Average Remaining Contractual Term, Exercisable | 2 years 1 month 6 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0 | |
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 35,500 |
Share-Based Compensation (Share
Share-Based Compensation (Share-Based Compensation Valuation of Stock Options) (Details) | 3 Months Ended |
Apr. 30, 2022shares | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock options granted | 0 |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Stock Units and Performance-Based Restricted Stock Units) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | 50 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | Jan. 29, 2022 | Apr. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 0 | |||
Repurchase and retirement of common stock | $ 40,007 | $ 60,000 | $ 150,000 | |
Unrecognized compensation costs related to non-vested share-based compensation | $ 51,900 | $ 51,900 | ||
Compensation cost not yet recognized, period for recognition (years) | 2 years 7 months 6 days | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 232,710 | 254,295 | 232,710 | |
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price | $ 136.36 | $ 126.93 | $ 136.36 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 86,566 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 146.17 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (99,124) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 101.85 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (9,027) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 138.01 | |||
Restricted Stock Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (years) | 1 year | |||
Restricted Stock Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (years) | 5 years | |||
Performance-Based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 469,180 | 349,236 | 469,180 | |
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price | $ 126.50 | $ 163.16 | $ 126.50 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 127,598 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 165.90 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (7,654) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 161.29 | |||
Performance-Based Restricted Stock Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (years) | 1 year | |||
Performance-Based Restricted Stock Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (years) | 5 years | |||
Performance-Based Restricted Stock Units Based On Market Condition | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (years) | 3 years | |||
Treasury Stoc | Restricted Stock Units And Performance-Based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Repurchased During Period, Shares | 26,151 | 34,682 | ||
Additional paid-in capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Repurchase and retirement of common stock | $ 40,005 | |||
Additional paid-in capital | Restricted Stock Units And Performance-Based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Repurchase and retirement of common stock | $ 4,100 | $ 6,600 |
Share-Based Compensation (Sha_2
Share-Based Compensation (Share Repurchase Program) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 50 Months Ended | ||
Apr. 30, 2022 | Jan. 29, 2022 | Apr. 30, 2022 | Mar. 09, 2021 | Mar. 20, 2018 | |
Share-based Payment Arrangement [Abstract] | |||||
Authorized amount | $ 100,000,000 | $ 100,000,000 | |||
Repurchase and retirement of common stock (in shares) | 247,132 | 368,699 | 1,100,000 | ||
Repurchase and retirement of common stock | $ 40,007,000 | $ 60,000,000 | $ 150,000,000 | ||
Average price (dollars per share) | $ 161.88 | $ 162.75 | $ 161.88 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Apr. 30, 2022 | May 01, 2021 | May 02, 2020 | |
Income Tax [Line Items] | |||
Income tax expense | $ 9,374,000 | $ 13,114,000 | |
Effective tax rate | 22.30% | 20.90% | |
Accrual for uncertain tax, interest or penalties | $ 0 | $ 0 | $ 0 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 42,092,000 | $ 62,710,000 | |
Minimum | |||
Income Tax [Line Items] | |||
State income taxes, statute of limitations period (years) | 3 years | ||
Maximum | |||
Income Tax [Line Items] | |||
State income taxes, statute of limitations period (years) | 4 years |