Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
May 04, 2024 | Jun. 05, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Entity Registrant Name | Five Below, Inc. | |
Document Period End Date | May 04, 2024 | |
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 | 2024 | |
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 | --02-01 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Address, Postal Zip Code | 19106 | |
City Area Code | 215 | |
Local Phone Number | 546-7909 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 55,071,035 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | May 04, 2024 | Feb. 03, 2024 | Apr. 29, 2023 |
Current assets: | |||
Cash and cash equivalents | $ 96,308,000 | $ 179,749,000 | $ 335,286,000 |
Short-term investment securities | 273,341,000 | 280,339,000 | 88,241,000 |
Inventories | 629,981,000 | 584,627,000 | 534,389,000 |
Prepaid income taxes and tax receivable | 4,834,000 | 4,834,000 | 8,898,000 |
Prepaid expenses and other current assets | 146,004,000 | 153,993,000 | 116,689,000 |
Total current assets | 1,150,468,000 | 1,203,542,000 | 1,083,503,000 |
Property and equipment, net of accumulated depreciation and amortization of $621,276, $584,090, and $483,213, respectively. | 1,190,865,000 | 1,134,312,000 | 944,375,000 |
Operating lease assets | 1,587,435,000 | 1,509,416,000 | 1,336,588,000 |
Long-term investment securities | 0 | 7,791,000 | 0 |
Other assets | 18,536,000 | 16,976,000 | 16,043,000 |
Total assets | 3,947,304,000 | 3,872,037,000 | 3,380,509,000 |
Current liabilities: | |||
Line of credit | 0 | 0 | 0 |
Accounts payable | 221,789,000 | 256,275,000 | 234,492,000 |
Income taxes payable | 51,551,000 | 41,772,000 | 27,751,000 |
Accrued salaries and wages | 25,906,000 | 30,028,000 | 13,390,000 |
Other accrued expenses | 150,335,000 | 146,887,000 | 135,463,000 |
Operating lease liabilities | 292,048,000 | 240,964,000 | 207,458,000 |
Total current liabilities | 741,629,000 | 715,926,000 | 618,554,000 |
Other long-term liabilities | 8,234,000 | 6,826,000 | 4,626,000 |
Long-term operating lease liabilities | 1,546,157,000 | 1,497,586,000 | 1,310,465,000 |
Deferred income taxes | 66,623,000 | 66,743,000 | 59,563,000 |
Total liabilities | 2,362,643,000 | 2,287,081,000 | 1,993,208,000 |
Commitments and contingencies (note 6) | |||
Shareholders’ equity: | |||
Common stock, $0.01 par value. Authorized 120,000,000 shares; issued and outstanding 55,072,106, 55,197,875, and 55,665,239 shares, respectively. | 550,000 | 551,000 | 556,000 |
Additional paid-in capital | 150,948,000 | 182,709,000 | 248,677,000 |
Retained earnings | 1,433,163,000 | 1,401,696,000 | 1,138,068,000 |
Total shareholders’ equity | 1,584,661,000 | 1,584,956,000 | 1,387,301,000 |
Total liabilities and shareholders' equity (deficit) | $ 3,947,304,000 | $ 3,872,037,000 | $ 3,380,509,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 04, 2024 | Feb. 03, 2024 | Apr. 29, 2023 |
Statement of Financial Position [Abstract] | |||
Accumulated depreciation and amortization | $ 621,276 | $ 584,090 | $ 483,213 |
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) | 55,072,106 | 55,197,875 | 55,665,239 |
Common stock, shares outstanding (in shares) | 55,072,106 | 55,197,875 | 55,665,239 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Income Statement [Abstract] | ||
Net sales | $ 811,863 | $ 726,247 |
Cost of goods sold (exclusive of items shown separately below) | 548,343 | 491,443 |
Selling, general and administrative expenses | 190,186 | 163,206 |
Depreciation and amortization | 37,184 | 29,186 |
Operating income | 36,150 | 42,412 |
Interest income and other income | 4,990 | 3,647 |
Income before income taxes | 41,140 | 46,059 |
Income tax expense | 9,673 | 8,581 |
Net income | $ 31,467 | $ 37,478 |
Basic income per common share (in dollars per share) | $ 0.57 | $ 0.67 |
Diluted income per common share (in dollars per share) | $ 0.57 | $ 0.67 |
Weighted average shares outstanding: | ||
Basic shares (in shares) | 55,168,657 | 55,650,375 |
Diluted shares (in shares) | 55,255,838 | 55,777,010 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) | Total | Unrestricted stock | Common stock | Common stock Unrestricted stock | Additional paid-in capital | Additional paid-in capital Unrestricted stock | Retained earnings |
Balance, common stock, shares at Jan. 28, 2023 | 55,537,221 | ||||||
Balance at Jan. 28, 2023 | $ 1,361,929,000 | $ 555,000 | $ 260,784,000 | $ 1,100,590,000 | |||
Share-based compensation expense and issuance of unrestricted stock awards | 3,624,000 | $ 112,000 | 3,624,000 | $ 112,000 | |||
Issuance of unrestricted stock awards (in shares) | 579 | ||||||
Exercise of options to purchase common stock (in shares) | 600 | ||||||
Exercise of options to purchase common stock | 24,000 | 24,000 | |||||
Vesting of restricted and performance-based stock units (in shares) | 208,461 | ||||||
Vesting of restricted stock units and performance-based restricted stock units | 2,000 | $ 2,000 | |||||
Common shares withheld for taxes (in shares) | (81,622) | ||||||
Common shares withheld for taxes | (15,868,000) | $ (1,000) | (15,867,000) | ||||
Net income | $ 37,478,000 | 37,478,000 | |||||
Balance, common stock, shares at Apr. 29, 2023 | 55,665,239 | 55,665,239 | |||||
Balance at Apr. 29, 2023 | $ 1,387,301,000 | $ 556,000 | 248,677,000 | 1,138,068,000 | |||
Balance, common stock, shares at Jan. 28, 2023 | 55,537,221 | ||||||
Balance at Jan. 28, 2023 | $ 1,361,929,000 | $ 555,000 | 260,784,000 | 1,100,590,000 | |||
Repurchase and retirement of common stock (in shares) | (504,369) | ||||||
Repurchase and retirement of common stock | $ (80,000,000) | ||||||
Balance, common stock, shares at Feb. 03, 2024 | 55,197,875 | 55,197,875 | |||||
Balance at Feb. 03, 2024 | $ 1,584,956,000 | $ 551,000 | 182,709,000 | 1,401,696,000 | |||
Share-based compensation expense and issuance of unrestricted stock awards | 4,928,000 | $ 112,000 | 4,928,000 | $ 112,000 | |||
Issuance of unrestricted stock awards (in shares) | 626 | ||||||
Vesting of restricted and performance-based stock units (in shares) | 89,885 | ||||||
Vesting of restricted stock units and performance-based restricted stock units | 1,000 | $ 1,000 | |||||
Common shares withheld for taxes (in shares) | (33,953) | ||||||
Common shares withheld for taxes | $ (6,652,000) | $ 0 | (6,652,000) | ||||
Repurchase and retirement of common stock (in shares) | (182,327) | (182,327) | |||||
Repurchase and retirement of common stock | $ (30,151,000) | $ (2,000) | (30,149,000) | ||||
Net income | $ 31,467,000 | ||||||
Balance, common stock, shares at May. 04, 2024 | 55,072,106 | 55,072,106 | |||||
Balance at May. 04, 2024 | $ 1,584,661,000 | $ 550,000 | $ 150,948,000 | $ 1,433,163,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Operating activities: | ||
Net income | $ 31,467 | $ 37,478 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 37,184 | 29,186 |
Share-based compensation expense | 5,061 | 3,760 |
Deferred income tax (benefit) expense | (120) | 412 |
Other non-cash expenses | 120 | 36 |
Changes in operating assets and liabilities: | ||
Inventories | (45,354) | (6,669) |
Prepaid expenses and other assets | 6,393 | 11,695 |
Accounts payable | (36,353) | 6,878 |
Income taxes payable | 9,779 | 7,823 |
Accrued salaries and wages | (4,122) | (12,030) |
Operating leases | 21,636 | 3,716 |
Other accrued expenses | 748 | 3,006 |
Net cash provided by operating activities | 26,439 | 85,291 |
Investing activities: | ||
Purchases of investment securities and other investments | (4,508) | (77,848) |
Sales, maturities, and redemptions of investment securities | 19,296 | 56,452 |
Capital expenditures | (87,866) | (45,091) |
Net cash used in investing activities | (73,078) | (66,487) |
Financing activities: | ||
Repurchase and retirement of common stock | (30,151) | 0 |
Proceeds from exercise of options to purchase common stock and vesting of restricted and performance-based restricted stock units | 1 | 26 |
Common shares withheld for taxes | (6,652) | (15,868) |
Net cash used in financing activities | (36,802) | (15,842) |
Net (decrease) increase in cash and cash equivalents | (83,441) | 2,962 |
Cash and cash equivalents at beginning of period | 179,749 | 332,324 |
Cash and cash equivalents at end of period | 96,308 | 335,286 |
Supplemental disclosures of cash flow information: | ||
Increase in accrued purchases of property and equipment | $ 5,955 | $ 2,941 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
May 04, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business Five Below, Inc. 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. As used herein, “Five Below,” the “Company,” refers to Five Below, Inc. (collectively with its wholly owned subsidiaries), except as expressly indicated or unless the context otherwise requires. As used herein, references to “Crew” refer to the Company's employees, and references to “Shipcenters” refer to the Company's distribution and logistics centers. 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 May 4, 2024, operated in 43 states, excluding Alaska, Hawaii, Idaho, Montana, Oregon, Washington, and Wyoming. As of May 4, 2024 and April 29, 2023, the Company operated 1,605 stores and 1,367 stores, respectively, each operating under the name “Five Below.” The Company also sells its merchandise on the internet, through the Company's fivebelow.com e-commerce website, offering home delivery and the option to buy online and pick up in store. Additionally, the Company sells merchandise through on-demand third-party delivery services to enable its customers to shop online and receive convenient delivery. Fiscal Year Basis of Presentation The consolidated balance sheets as of May 4, 2024 and April 29, 2023, the consolidated statements of operations for the thirteen weeks ended May 4, 2024 and April 29, 2023, the consolidated statements of shareholders’ equity for the thirteen weeks ended May 4, 2024 and April 29, 2023 and the consolidated statements of cash flows for the thirteen weeks ended May 4, 2024 and April 29, 2023 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 May 4, 2024 and April 29, 2023. The balance sheet as of February 3, 2024, presented herein, has been derived from the audited balance sheet included in the Company's Annual Report on Form 10-K for fiscal 2023 as filed with the Securities and Exchange Commission on March 21, 2024 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 February 3, 2024 and footnotes thereto included in the Annual Report. The consolidated results of operations for the thirteen weeks May 4, 2024 and April 29, 2023 are not necessarily indicative of the consolidated operating results for the year ending February 1, 2025 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 In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures. This new guidance is designed to improve the disclosures about a public entity’s reportable segments and address requests from investors for more detailed information about a reportable segment’s expenses on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Public entities must adopt the changes to the segment reporting guidance on a retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes - Improvements to Income Tax Disclosures. This new guidance requires consistent categories and enhanced disaggregation of information in the rate reconciliation and enhanced disaggregation of income taxes paid by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements and related disclosures. Use of Estimates 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 May 4, 2024, February 3, 2024 and April 29, 2023, the Company had cash equivalents of $77.3 million, $154.9 million and $322.0 million, respectively. The Company’s cash equivalents typically 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 May 4, 2024, February 3, 2024 and April 29, 2023, 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 May 4, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 273,066 $ — $ 316 $ 272,750 Municipal bonds 275 — — 275 Total $ 273,341 $ — $ 316 $ 273,025 As of February 3, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 280,067 $ — $ 154 $ 279,913 Municipal bonds 272 — — 272 Total $ 280,339 $ — $ 154 $ 280,185 Long-term: Corporate bonds $ 7,791 $ — $ 8 $ 7,783 Total $ 7,791 $ — $ 8 $ 7,783 As of April 29, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 88,241 $ — $ 35 $ 88,206 Total $ 88,241 $ — $ 35 $ 88,206 Short-term investment securities as of May 4, 2024, February 3, 2024 and April 29, 2023 all mature in one year or less. Long-term investment securities as of February 3, 2024 all mature after one year but in less than two years. Prepaid Expenses and Other Current Assets Prepaid expenses as of May 4, 2024, February 3, 2024 and April 29, 2023 were $37.4 million, $30.5 million, and $30.3 million, respectively. Other current assets as of May 4, 2024, February 3, 2024 and April 29, 2023 wer e $108.6 million , $123.5 million, and $86.4 million, respectively. Other Accrued Expenses Other accrued expenses include accrued capital expenditure s of $52.4 million , $48.3 million, and $40.0 million as of May 4, 2024, February 3, 2024 and April 29, 2023, respectively. Deferred Compensation The Five Below, Inc. Non qualified Deferred Compensation Plan (the "Deferred Comp Plan") and a related, irrevocable grantor trust (the "Trust") provides eligible key crew 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. |
Revenue from Contracts With Cus
Revenue from Contracts With Customers | 3 Months Ended |
May 04, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenue from Contracts with Customers Revenue Transactions Revenue from store operations, including third party delivery services, 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 snack and seasonal (dollars in thousands): Thirteen Weeks Ended May 4, 2024 April 29, 2023 Amount Percentage of Net Sales Amount Percentage of Net Sales Leisure $ 373,833 46.1 % $ 350,201 48.2 % Fashion and home 228,270 28.1 % 195,832 27.0 % Snack and seasonal 209,760 25.8 % 180,214 24.8 % Total $ 811,863 100.0 % $ 726,247 100.0 % |
Leases
Leases | 3 Months Ended |
May 04, 2024 | |
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 May 4, 2024, the Company committed to 66 new store leases with average terms of approximately 10 years that have future minimum lease payments of approximately $139.2 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 May 4, 2024 and April 29, 2023, the weighted average remaining lease term for the Company's operating leases was 7.6 years and 7.3 years, respectively, and the weighted average discount rate was 5.3% and 5.3%, respectively. The following table is a summary of the Company's components for net lease costs (in thousands): Thirteen Weeks Ended Lease Cost May 4, 2024 April 29, 2023 Operating lease cost $ 73,618 $ 62,346 Variable lease cost 21,731 18,210 Net lease cost* $ 95,349 $ 80,556 * Excludes short-term lease cost, which is immaterial. The following table summarizes the maturity of lease liabilities under operating leases as of May 4, 2024 (in thousands): Maturity of Lease Liabilities Operating Leases 2024 $ 242,575 2025 321,534 2026 309,529 2027 289,527 2028 264,444 After 2028 810,643 Total lease payments 2,238,252 Less: imputed interest 400,047 Present value of lease liabilities $ 1,838,205 The following table summarizes the supplemental cash flow disclosures related to leases (in thousands): Thirteen Weeks Ended May 4, 2024 April 29, 2023 Cash paid for amounts included in the measurement of lease liabilities: Cash payments arising from operating lease liabilities (1) $ 51,163 $ 58,764 Supplemental non-cash information: Operating lease liabilities arising from obtaining right-of-use assets $ 125,916 $ 57,182 (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 |
May 04, 2024 | |
Earnings Per Share [Abstract] | |
Income Per Common Share | Income Per Common Share Basic income per common share amounts are calculated using the weighted average number of common shares outstanding for the period. Diluted income per common share amounts are calculated using the weighted average number of common shares outstanding for the period and include the dilutive impact of exercised stock options as well as assumed vesting of restricted stock awards and shares currently available for purchase under the Company's Employee Stock Purchase Plan, using the treasury stock method. Performance-based restricted stock units are considered contingently issuable shares for diluted income per common share purposes and the dilutive impact, if any, is not included in the weighted average shares until the performance conditions are met. The 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 May 4, 2024 April 29, 2023 Numerator: Net income $ 31,467 $ 37,478 Denominator: Weighted average common shares outstanding - basic 55,168,657 55,650,375 Dilutive impact of options, restricted stock units and employee stock purchase plan 87,181 126,635 Weighted average common shares outstanding - diluted 55,255,838 55,777,010 Per common share: Basic income per common share $ 0.57 $ 0.67 Diluted income per common share $ 0.57 $ 0.67 The effects of the assumed vesting of restricted stock units for 10,603 shares of common stock for the thirteen weeks ended May 4, 2024 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 18,506 shares of common stock for the thirteen weeks ended April 29, 2023 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 |
May 04, 2024 | |
Debt Disclosure [Abstract] | |
Line of Credit | Line of Credit On September 16, 2022, the Company entered into a Second Amendment to Credit Agreement (the "Second Amendment") which amended the Fifth Amended and Restated Credit Agreement, dated as of April 24, 2020, as previously amended by that certain First Amendment to Credit Agreement, dated as of January 27, 2021 (the "First Amendment"; the Fifth Amended and Restated Credit Agreement as amended by the First Amendment and the Second Amendment, the “Credit Agreement”), 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. Pursuant to the Second Amendment, the Revolving Credit Facility expires on the earliest to occur of (i) September 16, 2027 or (ii) an event of default. The Second Amendment also replaced the existing London Interbank Offered Rate ("LIBOR") provisions with Secured Overnight Financing Rate ("SOFR") provisions which converted then outstanding LIBOR loans into SOFR loans and additionally makes a number of other revisions to other provisions of the Credit Agreement. Giving effect to the Second Amendment, outstanding borrowings under the Revolving Credit Facility would accrue interest at floating rates plus an applicable margin ranging from 1.12% to 1.50% for SOFR loans and 0.125% to 0.50% for base rate loans, and letter of credit fees range from 1.125% to 1.50%, in each case based on the average availability under the Revolving Credit Facility. The Revolving Credit Facility may be increased by up to an additional $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 entire amount of the Revolving Credit Facility is available for the issuance of letters of credit and allows for swingline loans. 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 May 4, 2024, the Company had no borrowings under the Revolving Credit Facility and had approximately $225 million available under the Revolving Credit Facility. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
May 04, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Other Contractual Commitments As of May 4, 2024, the Company has other purchase commitments of approximately $3.7 million consisting of purchase agreements for materials that will be used in the construction of new stores. Contingencies Legal Matters |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
May 04, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Equity Incentive Plan Pursuant to the Company's 2022 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 crew and professional service providers. The Plan allows for the issuance of up to a total of 4.3 million shares under the Plan. As of May 4, 2024, approximately 3.2 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 May 4, 2024 was as follows: Options Weighted Weighted Balance as of February 3, 2024 10,126 $ 33.48 1.6 Granted — — Forfeited — — Exercised — — Balance as of May 4, 2024 10,126 33.48 1.3 Exercisable as of May 4, 2024 10.126 $ 33.48 1.3 The fair value of each option award granted to crew, including outside directors, is estimated on the date of grant using the Black-Scholes option-pricing model. There were no stock options granted, forfeited or exercised during the thirteen weeks ended May 4, 2024. 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 and PSUs granted to date generally have vesting periods ranging from less than one year to four years from the date of grant. 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 the Company's 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 simulation model, which utilizes multiple input variables such as (i) total shareholder return from the beginning of the performance cycle through the performance measurement date(s); (ii) volatility; (iii) risk-free interest rates; and (iv) the correlation of the pre-defined peer group's total shareholder return. RSU and PSU activity during the thirteen weeks ended May 4, 2024 was as follows: Restricted Stock Units Performance-Based Restricted Stock Units Number Weighted-Average Grant Date Fair Value Number Weighted-Average Grant Date Fair Value Non-vested balance as of February 3, 2024 196,309 $ 163.82 299,394 $ 206.07 Granted 75,084 176.68 156,956 175.07 Vested (60,810) 137.02 (29,075) 195.43 Forfeited (3,156) 177.34 (41,519) 197.01 Non-vested balance as of May 4, 2024 207,427 $ 176.12 385,756 $ 195.23 In connection with the vesting of RSUs and PSUs during the thirteen weeks ended May 4, 2024, the Company withheld 33,953 shares with an aggregate value of $6.7 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 April 29, 2023, the Company withheld 81,622 shares with an aggregate value of $15.9 million in satisfaction of minimum tax withholding obligations due upon vesting. As of May 4, 2024, there was $46.1 million of total unrecognized compensation costs related to non-vested share-based compensation arrangements (including RSUs and PSUs) granted under the Plan. The cost is expected to be recognized over a weighted average vesting period of 2.7 years. Share Repurchase Program On June 14, 2022, the Company's Board of Directors approved a new share repurchase program for up to $100 million of the Company's common stock through June 30, 2025. In fiscal 2023, the Company repurchased 504,369 shares under this program at an aggregate cost of approximately $80.0 million, or an average price of $158.63 per share. This program was retired on November 27, 2023. On November 27, 2023, the Company's Board of Directors approved a new share repurchase program for up to $100 million of the Company's common stock through November 27, 2026. During the thirteen weeks ended May 4, 2024, the Company repurchased 182,327 shares at an aggregate cost of approximately $30.0 million, or average price of $164.56 per share. Since approval of the share repurchase program in March 2018, the Company has purchased approximately 1.8 million shares for an aggregate cost of approximately $260 million. 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 | 3 Months Ended |
May 04, 2024 | |
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 May 4, 2024 and April 29, 2023 (dollars in thousands): Thirteen Weeks Ended May 4, 2024 April 29, 2023 Income before income taxes $ 41,140 $ 46,059 Income tax expense $ 9,673 $ 8,581 Effective tax rate 23.5 % 18.6 % The effective tax rates for the thirteen weeks ended May 4, 2024 and April 29, 2023 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 May 4, 2024 was higher than the thirteen weeks ended April 29, 2023 primarily due to discrete items, which includes the impact of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting." The Company had no material accrual for uncertain tax positions or interest and/or penalties related to income taxes on the Company’s balance sheets as of May 4, 2024, February 3, 2024 or April 29, 2023 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 May 4, 2024 or April 29, 2023. The Company files a federal income tax return as well as state tax returns. The Company’s U.S. federal income tax returns for the fiscal years ended January 30, 2021 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 depending on the state. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 31,467 | $ 37,478 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
May 04, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
May 04, 2024 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Five Below, Inc. 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. As used herein, “Five Below,” the “Company,” refers to Five Below, Inc. (collectively with its wholly owned subsidiaries), except as expressly indicated or unless the context otherwise requires. As used herein, references to “Crew” refer to the Company's employees, and references to “Shipcenters” refer to the Company's distribution and logistics centers. 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. |
Fiscal Year | Fiscal Year |
Basis of Presentation | Basis of Presentation The consolidated balance sheets as of May 4, 2024 and April 29, 2023, the consolidated statements of operations for the thirteen weeks ended May 4, 2024 and April 29, 2023, the consolidated statements of shareholders’ equity for the thirteen weeks ended May 4, 2024 and April 29, 2023 and the consolidated statements of cash flows for the thirteen weeks ended May 4, 2024 and April 29, 2023 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 May 4, 2024 and April 29, 2023. The balance sheet as of February 3, 2024, presented herein, has been derived from the audited balance sheet included in the Company's Annual Report on Form 10-K for fiscal 2023 as filed with the Securities and Exchange Commission on March 21, 2024 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 February 3, 2024 and footnotes thereto included in the Annual Report. The consolidated results of operations for the thirteen weeks May 4, 2024 and April 29, 2023 are not necessarily indicative of the consolidated operating results for the year ending February 1, 2025 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 Pronouncement | Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures. This new guidance is designed to improve the disclosures about a public entity’s reportable segments and address requests from investors for more detailed information about a reportable segment’s expenses on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Public entities must adopt the changes to the segment reporting guidance on a retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes - Improvements to Income Tax Disclosures. This new guidance requires consistent categories and enhanced disaggregation of information in the rate reconciliation and enhanced disaggregation of income taxes paid by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements and related disclosures. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements requires management of the Company to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, 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 May 4, 2024, February 3, 2024 and April 29, 2023, the Company had cash equivalents of $77.3 million, $154.9 million and $322.0 million, respectively. The Company’s cash equivalents typically 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. Short-term investment securities as of May 4, 2024, February 3, 2024 and April 29, 2023 all mature in one year or less. Long-term investment securities as of February 3, 2024 all mature after one year but in less than two years. |
Deferred Compensation | Deferred Compensation The Five Below, Inc. Non qualified Deferred Compensation Plan (the "Deferred Comp Plan") and a related, irrevocable grantor trust (the "Trust") provides eligible key crew 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. |
Revenue Transactions | Revenue Transactions Revenue from store operations, including third party delivery services, 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
May 04, 2024 | |
Accounting Policies [Abstract] | |
Schedule of securities held-to-maturity | Such securities are carried at amortized cost plus accrued interest and consist of the following (in thousands): As of May 4, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 273,066 $ — $ 316 $ 272,750 Municipal bonds 275 — — 275 Total $ 273,341 $ — $ 316 $ 273,025 As of February 3, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 280,067 $ — $ 154 $ 279,913 Municipal bonds 272 — — 272 Total $ 280,339 $ — $ 154 $ 280,185 Long-term: Corporate bonds $ 7,791 $ — $ 8 $ 7,783 Total $ 7,791 $ — $ 8 $ 7,783 As of April 29, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Short-term: Corporate bonds $ 88,241 $ — $ 35 $ 88,206 Total $ 88,241 $ — $ 35 $ 88,206 |
Revenue from Contracts With C_2
Revenue from Contracts With Customers (Tables) | 3 Months Ended |
May 04, 2024 | |
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 snack and seasonal (dollars in thousands): Thirteen Weeks Ended May 4, 2024 April 29, 2023 Amount Percentage of Net Sales Amount Percentage of Net Sales Leisure $ 373,833 46.1 % $ 350,201 48.2 % Fashion and home 228,270 28.1 % 195,832 27.0 % Snack and seasonal 209,760 25.8 % 180,214 24.8 % Total $ 811,863 100.0 % $ 726,247 100.0 % |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
May 04, 2024 | |
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 May 4, 2024 April 29, 2023 Operating lease cost $ 73,618 $ 62,346 Variable lease cost 21,731 18,210 Net lease cost* $ 95,349 $ 80,556 The following table summarizes the supplemental cash flow disclosures related to leases (in thousands): Thirteen Weeks Ended May 4, 2024 April 29, 2023 Cash paid for amounts included in the measurement of lease liabilities: Cash payments arising from operating lease liabilities (1) $ 51,163 $ 58,764 Supplemental non-cash information: Operating lease liabilities arising from obtaining right-of-use assets $ 125,916 $ 57,182 (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 May 4, 2024 (in thousands): Maturity of Lease Liabilities Operating Leases 2024 $ 242,575 2025 321,534 2026 309,529 2027 289,527 2028 264,444 After 2028 810,643 Total lease payments 2,238,252 Less: imputed interest 400,047 Present value of lease liabilities $ 1,838,205 |
Income Per Common Share (Tables
Income Per Common Share (Tables) | 3 Months Ended |
May 04, 2024 | |
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 May 4, 2024 April 29, 2023 Numerator: Net income $ 31,467 $ 37,478 Denominator: Weighted average common shares outstanding - basic 55,168,657 55,650,375 Dilutive impact of options, restricted stock units and employee stock purchase plan 87,181 126,635 Weighted average common shares outstanding - diluted 55,255,838 55,777,010 Per common share: Basic income per common share $ 0.57 $ 0.67 Diluted income per common share $ 0.57 $ 0.67 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
May 04, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of share-based compensation, stock options, activity | Stock option activity during the thirteen weeks ended May 4, 2024 was as follows: Options Weighted Weighted Balance as of February 3, 2024 10,126 $ 33.48 1.6 Granted — — Forfeited — — Exercised — — Balance as of May 4, 2024 10,126 33.48 1.3 Exercisable as of May 4, 2024 10.126 $ 33.48 1.3 |
Schedule of share-based compensation, restricted stock units award activity | RSU and PSU activity during the thirteen weeks ended May 4, 2024 was as follows: Restricted Stock Units Performance-Based Restricted Stock Units Number Weighted-Average Grant Date Fair Value Number Weighted-Average Grant Date Fair Value Non-vested balance as of February 3, 2024 196,309 $ 163.82 299,394 $ 206.07 Granted 75,084 176.68 156,956 175.07 Vested (60,810) 137.02 (29,075) 195.43 Forfeited (3,156) 177.34 (41,519) 197.01 Non-vested balance as of May 4, 2024 207,427 $ 176.12 385,756 $ 195.23 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
May 04, 2024 | |
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 May 4, 2024 and April 29, 2023 (dollars in thousands): Thirteen Weeks Ended May 4, 2024 April 29, 2023 Income before income taxes $ 41,140 $ 46,059 Income tax expense $ 9,673 $ 8,581 Effective tax rate 23.5 % 18.6 % |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Nature of business (Details) | 3 Months Ended | |
May 04, 2024 USD ($) store state | Apr. 29, 2023 store | |
Accounting Policies [Abstract] | ||
Products offering price, maximum price | $ | $ 5 | |
Number of states in which entity operates (state) | state | 43 | |
Number of company operated stores | store | 1,605 | 1,367 |
Deferred compensation, maximum amount of eligible compensation as a percentage of gross pay | 80% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Fair value of financial instruments (Details) - USD ($) $ in Thousands | May 04, 2024 | Feb. 03, 2024 | Apr. 29, 2023 |
Significant Accounting Policies [Line Items] | |||
Amortized Cost | $ 88,241 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 35 | ||
Fair Market Value | 88,206 | ||
Fair Value, Inputs, Level 1 | |||
Significant Accounting Policies [Line Items] | |||
Cash equivalents | $ 77,300 | $ 154,900 | 322,000 |
Short-term: | |||
Significant Accounting Policies [Line Items] | |||
Amortized Cost | 273,341 | 280,339 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 316 | 154 | |
Fair Market Value | 273,025 | 280,185 | |
Corporate bonds | Fair Value, Inputs, Level 2 | |||
Significant Accounting Policies [Line Items] | |||
Amortized Cost | 273,066 | 280,067 | 88,241 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | 316 | 154 | 35 |
Fair Market Value | 272,750 | 279,913 | $ 88,206 |
Municipal bonds | Fair Value, Inputs, Level 2 | |||
Significant Accounting Policies [Line Items] | |||
Amortized Cost | 275 | 272 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Market Value | $ 275 | 272 | |
Long-term: | |||
Significant Accounting Policies [Line Items] | |||
Amortized Cost | 7,791 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 8 | ||
Fair Market Value | 7,783 | ||
Corporate bonds | Fair Value, Inputs, Level 2 | |||
Significant Accounting Policies [Line Items] | |||
Amortized Cost | 7,791 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 8 | ||
Fair Market Value | $ 7,783 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Prepaid expenses and other current assets (Details) - USD ($) $ in Millions | May 04, 2024 | Feb. 03, 2024 | Apr. 29, 2023 |
Accounting Policies [Abstract] | |||
Prepaid expense | $ 37.4 | $ 30.5 | $ 30.3 |
Other current assets | $ 108.6 | $ 123.5 | $ 86.4 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Other accrued expenses (Details) - USD ($) $ in Millions | May 04, 2024 | Feb. 03, 2024 | Apr. 29, 2023 |
Accounting Policies [Abstract] | |||
Other accrued expenses | $ 52.4 | $ 48.3 | $ 40 |
Revenue from Contracts With C_3
Revenue from Contracts With Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Net sales | $ 811,863 | $ 726,247 |
Net sales as a percentage of net sales | 100% | 100% |
Leisure | ||
Net sales | $ 373,833 | $ 350,201 |
Net sales as a percentage of net sales | 46.10% | 48.20% |
Fashion and home | ||
Net sales | $ 228,270 | $ 195,832 |
Net sales as a percentage of net sales | 28.10% | 27% |
Snack and seasonal | ||
Net sales | $ 209,760 | $ 180,214 |
Net sales as a percentage of net sales | 25.80% | 24.80% |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended | |
May 04, 2024 USD ($) lease | Apr. 29, 2023 | |
Leases [Abstract] | ||
Number of leases (lease) | lease | 66 | |
Lessee, operating lease, term of contracts (years) | 10 years | |
Long-term purchase commitment, amount | $ | $ 139.2 | |
Operating lease, weighted average remaining lease term (years) | 7 years 7 months 6 days | 7 years 3 months 18 days |
Operating lease, weighted average discount rate, percent | 5.30% | 5.30% |
Leases - Components of net leas
Leases - Components of net lease cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Leases [Abstract] | ||
Operating lease cost | $ 73,618 | $ 62,346 |
Variable lease cost | 21,731 | 18,210 |
Net lease cost | $ 95,349 | $ 80,556 |
Leases - Maturity of lease liab
Leases - Maturity of lease liabilities under operating leases (Details) $ in Thousands | May 04, 2024 USD ($) |
Leases [Abstract] | |
2024 | $ 242,575 |
2025 | 321,534 |
2026 | 309,529 |
2027 | 289,527 |
2028 | 264,444 |
After 2028 | 810,643 |
Total lease payments | 2,238,252 |
Less: imputed interest | 400,047 |
Present value of lease liabilities | $ 1,838,205 |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Cash payments arising from operating lease liabilities | $ 51,163 | $ 58,764 |
Supplemental non-cash information: | ||
Operating lease liabilities arising from obtaining right-of-use assets | $ 125,916 | $ 57,182 |
Income Per Common Share - Compu
Income Per Common Share - Computations of basic and diluted income (loss) per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Numerator: | ||
Net income | $ 31,467 | $ 37,478 |
Denominator: | ||
Weighted average common shares outstanding - basic (in shares) | 55,168,657 | 55,650,375 |
Dilutive impact of options, restricted stock units and employee stock purchase plan (in shares) | 87,181 | 126,635 |
Weighted average common share outstanding - diluted (in shares) | 55,255,838 | 55,777,010 |
Per common share: | ||
Basic income per common share (in dollars per share) | $ 0.57 | $ 0.67 |
Diluted income per common share (in dollars per share) | $ 0.57 | $ 0.67 |
Income Per Common Share - Narra
Income Per Common Share - Narrative (Details) - shares | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
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 | 10,603 | 18,506 |
Line of Credit (Details)
Line of Credit (Details) - Line of Credit - Amended Revolving Credit Facility - USD ($) | Sep. 16, 2022 | May 04, 2024 |
Debt Instrument [Line Items] | ||
Revolving credit facility maximum borrowings | $ 225,000,000 | |
Line of credit facility, accordion feature, increase limit | 150,000,000 | |
Maximum allowed to be borrowed based on available cash balance | $ 50,000,000 | |
Minimum availability of aggregate commitments and loan cap required, percent | 12.50% | |
Minimum availability of loan cap after stepdown date required, percent | 10% | |
Minimum availability of loan cap, percentage of availability (in excess of) | 15% | |
Period required for availability of loan cap requirement | 60 days | |
Line of credit facility, current borrowing capacity | $ 0 | |
Line of credit facility, remaining borrowing capacity | $ 225,000,000 | |
Minimum | ||
Debt Instrument [Line Items] | ||
Commitment fee percentage | 1.125% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Commitment fee percentage | 1.50% | |
SOFR | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate on borrowings (percent) | 1.12% | |
SOFR | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate on borrowings (percent) | 1.50% | |
Base Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate on borrowings (percent) | 0.125% | |
Base Rate | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate on borrowings (percent) | 0.50% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | May 04, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase commitment, remaining minimum amount committed | $ 3.7 |
Share-Based Compensation - 2002
Share-Based Compensation - 2002 Equity incentive plan (Details) - 2022 Equity Incentive Plan - shares | May 04, 2024 | Jun. 14, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for issuance (shares) | 4,300,000 | |
Stock options and restricted shares available for grant (shares) | 3,200,000 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of stock option activity under plan (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
May 04, 2024 | Feb. 03, 2024 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock option maximum term (in years) | 10 years | |
Stock option vesting period (in years) | 4 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options outstanding, Balance (in shares) | 10,126 | |
Options outstanding, Balance (in shares) | 10,126 | 10,126 |
Options outstanding, Exercisable (in shares) | 10,126 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Weighted average exercise price, Balance (in dollars per share) | $ 33.48 | |
Weighted average exercise price, Balance (in dollars per share) | 33.48 | $ 33.48 |
Weighted average exercise price, Exercisable (in dollars per share) | $ 33.48 | |
Weighted average remaining contractual term | 1 year 3 months 18 days | 1 year 7 months 6 days |
Weighted average remaining contractual term, Exercisable | 1 year 3 months 18 days |
Share-Based Compensation - Shar
Share-Based Compensation - Share-based compensation valuation of stock options (Details) | 3 Months Ended |
May 04, 2024 shares | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stock options granted | 0 |
Share-Based Compensation - Rest
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 | 74 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | Feb. 03, 2024 | May 04, 2024 | |
Weighted-Average Grant Date Fair Value | ||||
Repurchase and retirement of common stock | $ 30,151 | $ 80,000 | $ 260,000 | |
Unrecognized compensation costs related to non-vested share-based compensation | $ 46,100 | $ 46,100 | ||
Compensation cost not yet recognized, period for recognition (in years) | 2 years 8 months 12 days | |||
Performance-Based Restricted Stock Units Based On Market Condition | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 3 years | |||
Restricted Stock Units | ||||
Number | ||||
Non-vested balance, beginning balance (in shares) | 196,309 | |||
Granted (in shares) | 75,084 | |||
Vested (in shares) | (60,810) | |||
Forfeited (in shares) | (3,156) | |||
Non-vested balance, ending balance (in shares) | 207,427 | 196,309 | 207,427 | |
Weighted-Average Grant Date Fair Value | ||||
Non-vested balance, beginning balance (in dollars per share) | $ 163.82 | |||
Granted (in dollars per share) | 176.68 | |||
Vested (in dollars per share) | 137.02 | |||
Forfeited (in dollars per share) | 177.34 | |||
Non-vested balance, ending balance (in dollars per share) | $ 176.12 | $ 163.82 | $ 176.12 | |
Restricted Stock Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 1 year | |||
Restricted Stock Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 4 years | |||
Performance-Based Restricted Stock Units | ||||
Number | ||||
Non-vested balance, beginning balance (in shares) | 299,394 | |||
Granted (in shares) | 156,956 | |||
Vested (in shares) | (29,075) | |||
Forfeited (in shares) | (41,519) | |||
Non-vested balance, ending balance (in shares) | 385,756 | 299,394 | 385,756 | |
Weighted-Average Grant Date Fair Value | ||||
Non-vested balance, beginning balance (in dollars per share) | $ 206.07 | |||
Granted (in dollars per share) | 175.07 | |||
Vested (in dollars per share) | 195.43 | |||
Forfeited (in dollars per share) | 197.01 | |||
Non-vested balance, ending balance (in dollars per share) | $ 195.23 | $ 206.07 | $ 195.23 | |
Treasury Stock | Restricted Stock Units And Performance-Based Restricted Stock Units | ||||
Weighted-Average Grant Date Fair Value | ||||
Shares withheld for taxes (in shares) | (33,953) | (81,622) | ||
Additional paid-in capital | ||||
Weighted-Average Grant Date Fair Value | ||||
Repurchase and retirement of common stock | $ 30,149 | |||
Additional paid-in capital | Restricted Stock Units And Performance-Based Restricted Stock Units | ||||
Weighted-Average Grant Date Fair Value | ||||
Repurchase and retirement of common stock | $ 6,700 | $ 15,900 |
Share-Based Compensation - Sh_2
Share-Based Compensation - Share repurchase program (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 74 Months Ended | ||
May 04, 2024 | Feb. 03, 2024 | May 04, 2024 | Nov. 27, 2023 | Jun. 14, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized amount | $ 100,000,000 | $ 100,000,000 | |||
Repurchase and retirement of common stock (in shares) | 182,327 | 504,369 | 1,800,000 | ||
Repurchase and retirement of common stock | $ 30,151,000 | $ 80,000,000 | $ 260,000,000 | ||
Average price (in dollars per share) | $ 164.56 | $ 158.63 | $ 164.56 | ||
2022 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Repurchase and retirement of common stock | $ 30,000,000 |
Income Taxes - Schedule of effe
Income Taxes - Schedule of effective income tax rate reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income before income taxes | $ 41,140 | $ 46,059 |
Income tax expense | $ 9,673 | $ 8,581 |
Effective tax rate | 23.50% | 18.60% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | ||
May 04, 2024 | Feb. 03, 2024 | Apr. 29, 2023 | |
Income Tax [Line Items] | |||
Accrual for uncertain tax, interest or penalties | $ 0 | $ 0 | $ 0 |
Minimum | |||
Income Tax [Line Items] | |||
State income taxes, statute of limitations period (in years) | 3 years | ||
Maximum | |||
Income Tax [Line Items] | |||
State income taxes, statute of limitations period (in years) | 4 years |