Sears Hometown & Outlet Stores (SHOS) 10-Q 6 Jun 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information Document	3 Months Ended
	3-May-14	Jun. 05, 2014
Document and Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	3-May-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'
Entity Registrant Name	'Sears Hometown & Outlet Stores, Inc.	'
Entity Central Index Key	'0001548309	'
Current Fiscal Year End Date	'--01-31	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	22,749,936

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Income (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	3-May-14	4-May-13
NET SALES	$589,854	$601,117
COSTS AND EXPENSES	'	'
Cost of sales and occupancy	445,955	446,869
Selling and administrative	135,279	127,188
Depreciation	2,288	2,341
Total costs and expenses	583,522	576,398
Operating income	6,332	24,719
Interest income (expense)	-934	-589
Other income	680	415
Income before income taxes	6,078	24,545
Income tax expense	-2,399	-9,548
NET INCOME	$3,679	$14,997
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO STOCKHOLDERS	'	'
Basic (in dollars per share)	$0.16	$0.65
Diluted (in dollars per share)	$0.16	$0.65
Basic weighted average common shares outstanding (in shares)	22,666	23,100
Diluted weighted average common shares outstanding (in shares)	22,666	23,100

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	3-May-14	Feb. 01, 2014	4-May-13
In Thousands, unless otherwise specified
CURRENT ASSETS	'	'	'
Cash and cash equivalents	$23,145	$23,475	$27,465
Accounts receivable	23,233	19,252	14,105
Merchandise inventories	493,203	482,107	464,576
Prepaid expenses and other current assets	13,146	13,216	11,013
Total current assets	552,727	538,050	517,159
PROPERTY AND EQUIPMENT, net	50,303	48,973	50,782
GOODWILL	167,000	167,000	167,000
LONG-TERM DEFERRED TAXES	50,489	52,672	67,534
OTHER ASSETS	42,668	40,490	25,818
TOTAL ASSETS	863,187	847,185	828,293
CURRENT LIABILITIES	'	'	'
Short-term borrowings	98,100	99,100	47,300
Payable to Sears Holdings Corporation	86,170	68,396	88,794
Accounts payable	21,038	24,129	25,424
Other current liabilities	59,090	60,319	80,404
Current portion of capital lease obligations	490	662	1,257
Total current liabilities	264,888	252,606	243,179
CAPITAL LEASE OBLIGATIONS	62	95	516
OTHER LONG-TERM LIABILITIES	4,047	4,259	3,314
TOTAL LIABILITIES	268,997	256,960	247,009
COMMITMENTS AND CONTINGENCIES (Note 7)	'	'	'
STOCKHOLDERS' EQUITY	'	'	'
TOTAL STOCKHOLDERS' EQUITY	594,190	590,225	581,284
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$863,187	$847,185	$828,293

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	3-May-14	4-May-13
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net income	$3,679	$14,997
Adjustments to reconcile net income to net cash provided by (used in) operating activities:	'	'
Depreciation	2,288	2,341
Share-based compensation	286	0
Change in operating assets and liabilities:	'	'
Accounts receivable	-6,340	-6,478
Merchandise inventories	-11,096	-36,139
Payable to Sears Holdings Corporation	17,774	9,303
Accounts payable	-3,091	-6,406
Customer deposits	-1,685	5,030
Deferred income taxes	2,440	4,843
Other operating assets	317	1,347
Other operating liabilities	210	-7,316
Net cash provided by (used in) operating activities	4,782	-18,478
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Purchases of property and equipment	-3,940	-1,009
Net cash used in investing activities	-3,940	-1,009
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Payments of capital lease obligations	-172	-416
Net short-term borrowings (payments)	-1,000	27,300
Net cash provided by (used in) financing activities	-1,172	26,884
NET CHANGE IN CASH AND CASH EQUIVALENTS	-330	7,397
CASH AND CASH EQUIVALENTSbBeginning of period	23,475	20,068
CASH AND CASH EQUIVALENTSbEnd of period	23,145	27,465
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION	'	'
Cash paid for interest	822	589
Cash paid for income taxes	$105	$3,595

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Stockholders' Equity (USD $)	Total	Common Stock [Member]	Capital in Excess of Par Value [Member]	Retained Earnings [Member]
In Thousands, unless otherwise specified
Beginning balance at Feb. 02, 2013	$566,287	$231	$556,575	$9,481
Beginning balance, Shares at Feb. 02, 2013	'	23,100	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'
Net income	14,997	'	'	14,997
Ending balance at May. 04, 2013	581,284	231	556,575	24,478
Ending balance, Shares at May. 04, 2013	'	23,100	'	'
Beginning balance at Feb. 01, 2014	590,225	228	547,021	42,976
Beginning balance, Shares at Feb. 01, 2014	'	22,753	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'
Net income	3,679	'	'	3,679
Share-based compensation	286	-1	287	'
Share-based compensation, Shares	'	-3	'	'
Ending balance at May. 03, 2014	$594,190	$227	$547,308	$46,655
Ending balance, Shares at May. 03, 2014	'	22,750	'	'

Background_and_Basis_of_Presen

Background and Basis of Presentation	3 Months Ended
	3-May-14
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
BACKGROUND AND BASIS OF PRESENTATION	'
	BACKGROUND AND BASIS OF PRESENTATION
	Background
	Sears Hometown and Outlet Stores, Inc. is a national retailer primarily focused on selling home appliances, hardware, tools, and lawn and garden equipment. As of May 3, 2014 the Company and its dealers and franchisees operated 1,250 stores across all 50 states and in Puerto Rico and Bermuda. In these notes and in the other items of this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “SHO,” and the “Company” refer to Sears Hometown and Outlet Stores, Inc. and its subsidiaries.
	Description of the Separation
	On October 11, 2012, Sears Holdings Corporation (“Sears Holdings”) completed the separation of its Sears Hometown and Hardware and Sears Outlet businesses (the “Separation”). As part of the Separation on August 31, 2012, through a series of intercompany transactions, Sears Holdings and several of its subsidiaries transferred the assets and liabilities comprising the Sears Hometown and Hardware and Sears Outlet businesses to SHO, which was formed on April 23, 2012 as a wholly owned subsidiary of Sears Holdings. Effective upon the Separation, Sears Holdings ceased to own shares of our common stock, and thereafter our common stock began trading on the NASDAQ Stock Market under the trading symbol “SHOS.”
	Basis of Presentation
	These unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. These unaudited condensed consolidated financial statements do not include all of the information and footnotes required in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the fiscal quarter ended May 3, 2014 are not necessarily indicative of the results that may be expected for the full fiscal year. These financial statements and related notes should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2014.
	We operate through two segments--our Sears Hometown and Hardware segment ("Hometown") and our Sears Outlet segment ("Outlet").
	Our fiscal year end is the Saturday closest to January 31 each year.  Our first fiscal quarter end is the Saturday closest to April 30 each year.
	Fair Value of Financial Instruments
	We determine the fair value of financial instruments in accordance with standards pertaining to fair value measurements. Such standards define fair value and establish a framework for measuring fair value under GAAP. Under fair value measurement accounting standards, fair value is considered to be the exchange price in an orderly transaction between market participants to sell an asset or transfer a liability at the measurement date. We report the fair value of financial assets and liabilities based on the fair value hierarchy prescribed by accounting standards for fair value measurements, which prioritizes the inputs to valuation techniques used to measure fair value into three levels, as follows:
	Level 1 inputs—unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. An active market for the asset or liability is one in which transactions for the asset or liability occurs with sufficient frequency and volume to provide ongoing pricing information.
	Level 2 inputs—inputs other than quoted market prices included in Level 1 that are observable, either directly or indirectly, for the asset or liability. Level 2 inputs include, but are not limited to, quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted market prices that are observable for the asset or liability, such as interest rate curves and yield curves observable at commonly quoted intervals, volatilities, credit risk and default rates.
	Level 3 inputs—unobservable inputs for the asset or liability.
	Cash and cash equivalents (level 1), accounts receivable, short-term debt (level 2), merchandise payables, and accrued expenses are reflected in the Condensed Consolidated Balance Sheets at cost, which approximates fair value due to the short-term nature of these instruments. For short-term debt, the variable interest rate is a significant input in our fair value assessments.
	We measure certain non-financial assets and liabilities, including long-lived assets, at fair value on a non-recurring basis.
	The Company was not required to measure any other significant non-financial asset or liability at fair value as of May 3, 2014.
	Recent Accounting Pronouncements
	Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity
	In April 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standards update which modifies the requirements for disposals to qualify as discontinued operations and expands related disclosure requirements. The update will be effective in the first quarter of 2015 and is not expected to have a material impact on our consolidated financial position, results of operations, or cash flows.
	Revenue from Contracts with Customers
	In May 2014, the FASB issued an accounting standards update which establishes a comprehensive revenue recognition standard for virtually all industries in U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. The update is effective in 2017 and we are currently evaluating the potential impact. Accordingly, we cannot estimate the effect on our consolidated financial position, results of operations, or cash flows.

Other_Current_and_LongTerm_Lia

Other Current and Long-Term Liabilities	3 Months Ended
	3-May-14
Payables and Accruals [Abstract]	'
OTHER CURRENT AND LONG-TERM LIABILITIES	'
	OTHER CURRENT AND LONG-TERM LIABILITIES
	Other current and long-term liabilities consist of the following:
	Thousands	May 3,		May 4,		February 1,
		2014		2013		2014
	Customer deposits	33,862		39,945		35,547
	Sales and other taxes	13,690		15,142		11,403
	Accrued expenses	8,551		23,068		9,523
	Payroll and related items	7,034		5,563		8,105
	Total Other current and long-term liabilities	$	63,137	$	83,718	$	64,578

Income_Taxes

Income Taxes	3 Months Ended
	3-May-14
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	INCOME TAXES
	In connection with the Separation, SHO and Sears Holdings entered into a Tax Sharing Agreement that governs the rights and obligations of the parties with respect to pre-Separation and post-Separation tax matters. Under the Tax Sharing Agreement, Sears Holdings is responsible for any federal, state, or foreign income tax liability relating to tax periods ending on or before the Separation. For all periods after the Separation, the Company is responsible for any federal, state, or foreign tax liability. Current income taxes payable for any federal, state, or foreign income tax returns is reported in the period incurred.
	We account for uncertainties in income taxes according to accounting standards for uncertain tax positions. The Company is present in a large number of taxable jurisdictions and, at any point in time, can have audits underway at various stages of completion in one or more of these jurisdictions. We evaluate our tax positions and establish liabilities for uncertain tax positions that may be challenged by local authorities and may not be fully sustained, despite our belief that the underlying tax positions are fully supportable. Unrecognized tax benefits are reviewed on an ongoing basis and are adjusted in light of changing facts and circumstances, including progress of tax audits, developments in case law, and closings of statutes of limitation. Such adjustments are reflected in the tax provision as appropriate. Pursuant to the Tax Sharing Agreement, Sears Holdings is responsible for any unrecognized tax liability or benefit through the date of the Separation and the Company is responsible for any uncertain tax position after the Separation. For the 13 weeks ended May 3, 2014 and May 4, 2013, no unrecognized tax benefits have been identified and reflected in the financial statements.
	We classify interest expense and penalties related to unrecognized tax benefits and interest income on tax overpayments as components of income tax expense. As no unrecognized tax benefits have been identified and reflected in the condensed consolidated financial statements, no interest or penalties related to unrecognized tax benefits are reflected in the condensed consolidated balance sheets or statements of income.
	As part of the Separation on August 31, 2012, through a series of intercompany transactions, Sears Holdings and several of its subsidiaries transferred the assets and liabilities comprising the Sears Hometown and Hardware and the Sears Outlet businesses to SHO.  In connection with the intercompany transactions, for tax purposes the transferred assets and liabilities were stepped up to their estimated fair market values as of August 31, 2012, but for financial statement purposes the book value of the assets and liabilities remained unchanged at their historical cost bases. As of May 3, 2014 the Company's net deferred tax asset balance was $55.6 million compared to $71.8 million as of May 4, 2013 and $58.0 million as of February 1, 2014.

Related_Party_Agreements_and_T

Related Party Agreements and Transactions	3 Months Ended
	3-May-14
Related Party Transactions [Abstract]	'
RELATED-PARTY AGREEMENTS AND TRANSACTIONS	'
	RELATED-PARTY AGREEMENTS AND TRANSACTIONS
	According to publicly available information ESL Investments, Inc. and its investment affiliates, including Edward S. Lampert (collectively, “ESL”), beneficially owned on the filing date approximately 49.8% of our outstanding shares of common stock. According to publicly available information, ESL beneficially owns approximately 48.4% of Sears Holdings' outstanding shares of common stock.
	In connection with the Separation, we entered into various agreements with Sears Holdings (the "SHO-Sears Holdings Agreements") that, among other things, (1) govern specified aspects of our relationship with Sears Holdings following the Separation, (2) establish terms under which subsidiaries of Sears Holdings provide services to us, and (3) establish terms pursuant to which subsidiaries of Sears Holdings obtain merchandise inventories for us. The terms of the SHO-Sears Holdings Agreements were agreed to prior to the Separation in the context of a parent-subsidiary relationship and in the overall context of the Separation. The costs and allocations charged to the Company by Sears Holdings do not necessarily reflect the costs of obtaining the services from unaffiliated third parties or of the Company providing the applicable services itself. The Company engages in frequent discussions with Sears Holdings about the terms and conditions of the SHO-Sears Holdings Agreements, the business relationships that are reflected in the SHO-Sears Holdings Agreements, and the details of these business relationships, many of which details are not addressed by the terms and conditions of the SHO-Sears Holdings Agreements. These discussions from time to time result in adjustments to the relationships that the Company believes together are in Company's best interests.
	The following is a summary of the nature of the related-party transactions between SHO and Sears Holdings:
	•	SHO receives commissions from Sears Holdings for specified sales of merchandise made through www.sears.com and www.searsoutlet.com, the sale of extended service contracts, delivery and handling services, and relating to the use in our stores of credit cards branded with the Sears name. For certain transactions SHO pays a commission to Sears Holdings.
	•	We obtain a significant amount of our merchandise inventories from Sears Holdings, leveraging the benefit of the Sears Holdings purchasing activities. We have a retailer's customary rights to return to Sears Holdings merchandise that is defective (except with respect to agreed-upon amounts of defective apparel that we purchase and then liquidate) or otherwise does not meet contract requirements. In addition, we may determine that an item of Outlet merchandise (usually merchandise that is not new in-box) we have received from Sears Holdings cannot be refurbished or reconditioned or is otherwise not in a physical condition to offer for sale to our customers. We and Sears Holdings (and our Outlet vendors generally) refer to an item of merchandise in this condition as “not saleable” or "non-saleable," and in the normal course we can return the item to Sears Holdings. We generally have comparable return rights with our other Outlet vendors.
	•	We pay royalties related to our sale of products branded with the KENMORE®, CRAFTSMAN®, and DIEHARD® marks (which marks are owned by subsidiaries of Sears Holdings).
	•	We pay fees for participation in Sears Holdings' SHOP YOUR WAY REWARDS® program.
	•	We have also entered into agreements with Sears Holdings for logistics, handling, warehouse, and transportation services, the charges for which are based on merchandise inventory units.
	•	Sears Holdings provides the Company with specified corporate services. These services include accounting and finance, human resources, information technology, and real estate. Sears Holdings charges the Company for these corporate services based on actual usage or a pro rata charge based upon sales, head count, or square footage.
	The following table summarizes the results of the transactions with Sears Holdings reflected in the Company’s Condensed Consolidated Financial Statements:
			13 Weeks Ended
			May 3,		May 4,
	Thousands		2014		2013
	Net Commissions from Sears Holdings Corporation (1)		$	28,169	$	22,766
	Purchases related to cost of sales and occupancy		407,510		428,496
	Services		5,415		5,126
	(1) We reduced the amount previously presented for the 13 weeks ended May 4, 2013 to exclude all transactions in which SHO received the entire sales revenue for on-line sales made to unrelated third-parties that were generated through Sears Holdings' websites. The excluded amount for the 13 weeks ended May 4, 2013 was $16.6 million.
	We incur payables to Sears Holdings for merchandise inventory purchases and service and occupancy charges (net of commissions) based on our Separation agreements.  Amounts due to or from Sears Holdings are non-interest bearing, settled on a net basis, and have payments terms of 10 days after the invoice date.

Financing_Arrangements

Financing Arrangements	3 Months Ended
	3-May-14
Debt Disclosure [Abstract]	'
Financing Arrangements	'
	FINANCING ARRANGEMENT
	As of May 3, 2014 we had $98.1 million outstanding under the Senior ABL Facility, which approximated the fair value of these borrowings. The Senior ABL Facility provides (subject to availability under a borrowing base) for maximum borrowings up to the aggregate commitments of all of the lenders, which as of May 3, 2014 totaled $250 million. Up to $75 million of the Senior ABL Facility is available for the issuance of letters of credit and up to $25 million is available for swingline loans. The Senior ABL Facility permits us to request commitment increases in an aggregate principal amount of up to $100 million. Availability under the Senior ABL Facility as of May 3, 2014 was $146.3 million, with $5.6 million of letters of credit outstanding under the facility.
	The principal terms of the Senior ABL Facility are summarized below.
	Senior ABL Facility
	Maturity; Amortization and Prepayments
	The Senior ABL Facility will mature on the earlier of (i) October 11, 2017 or (ii) six months prior to the expiration of the Merchandising Agreement and the other agreements with Sears Holdings or its subsidiaries in connection with the Separation that are specified in the Senior ABL Facility, unless such agreements have been extended to a date later than October 11, 2017 or terminated on a basis reasonably satisfactory to the administrative agent under the Senior ABL Facility.
	The Senior ABL Facility is subject to mandatory prepayment in amounts equal to the amount by which the outstanding extensions of credit exceed the lesser of the borrowing base and the commitments then in effect.
	Guarantees; Security
	The obligations under the Senior ABL Facility are guaranteed by us and each of our existing and future direct and indirect wholly owned domestic subsidiaries (subject to certain exceptions). The Senior ABL Facility and the guarantees thereunder are secured by a first priority security interest in certain assets of the borrowers and guarantors consisting primarily of accounts receivable, inventory, cash, cash equivalents, deposit accounts and securities accounts, as well as certain other assets (other than intellectual property) ancillary to the foregoing and all proceeds of all of the foregoing, including cash proceeds and the proceeds of applicable insurance.
	Interest; Fees
	The interest rates per annum applicable to the loans under the Senior ABL Facility are based on a fluctuating rate of interest measured by reference to, at our election, either (1) an adjusted London inter-bank offered rate (LIBOR) plus a borrowing margin, approximately 2.40% at May 3, 2014 or (2) an alternate base rate plus a borrowing margin, with the borrowing margin subject to adjustment based on the average excess availability under the Senior ABL Facility for the preceding fiscal quarter, approximately 4.50% at May 3, 2014.
	Customary fees are payable in respect of the Senior ABL Facility, including letter of credit fees and commitment fees.
	Covenants
	The Senior ABL Facility includes a number of covenants that, among other things, limit or restrict our ability to, subject to specified exceptions, incur additional indebtedness (including guarantees), grant liens, make investments, make prepayments on other indebtedness, engage in mergers, or change the nature of our business.
	The Senior ABL Facility limits SHO's ability to declare and pay cash dividends and repurchase its common stock. SHO may declare and pay cash dividends to its stockholders and may repurchase stock if the following conditions are satisfied: either (a) (i) no specified default then exists or would arise as a result of the declaration or payment of the cash dividend or as a result of the stock repurchase, (ii) SHO and its subsidiaries that are also borrowers have demonstrated to the reasonable satisfaction of the agent for the lenders that monthly availability (as determined in accordance with the Senior ABL Facility), immediately following the declaration and payment of the cash dividend or the stock repurchase and as projected on a pro forma basis for the twelve months following and after giving effect to the declaration and payment of the cash dividend or the stock repurchase, would be at least equal to the greater of (x) 25% of the Loan Cap (which is the lesser of (A) the aggregate commitments of the lenders and (B) the borrowing base) and (y) $50,000,000, and (iii) after giving pro forma effect to the declaration and payment of the cash dividend or the stock repurchase as if it constituted a specified debt service charge, the specified consolidated fixed charge coverage ratio, as calculated on a trailing twelve months basis, would be equal to or greater than 1.1:1.0, or (b) (i) no specified default then exists or would arise as a result of the declaration or payment of the cash dividend or the stock repurchase, (ii) payment of the cash dividend or the stock repurchase is not made with the proceeds of any credit extension under the Senior ABL Facility, (iii) during the 120-day period prior to declaration and payment of the cash dividend or the stock repurchase, no credit extension was outstanding under the Senior ABL Facility, and (iv) SHO demonstrates to the reasonable satisfaction of the agent for the lenders that, on a pro forma and projected basis, no credit extensions would be outstanding under the Senior ABL Facility for the 120-day period following the declaration and payment of the cash dividend or the stock repurchase. No default or event of default presently exists.
	The Senior ABL Facility also contains certain affirmative covenants, including financial and other reporting requirements.
	Events of Default
	The Senior ABL Facility includes customary events of default including non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations or warranties, cross default to certain other material indebtedness, bankruptcy and insolvency events, invalidity or impairment of guarantees or security interests, material judgments, and change of control.

Summary_of_Segment_Data

Summary of Segment Data	3 Months Ended
	3-May-14
Segment Reporting [Abstract]	'
SUMMARY OF SEGMENT DATA	'
	SUMMARY OF SEGMENT DATA
	The Hometown reportable segment consists of the aggregation of our Hometown Stores, Hardware Stores, and Home Appliance Showrooms business formats described in “Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations-Executive Overview." The Outlet reportable segment also represents an operating format. These segments are evaluated by our Chief Operating Decision Maker to make decisions about resource allocation and to assess performance. Each of these segments derives its revenues from the sale of merchandise and related services to customers, primarily in the U.S. The net sales categories include appliances, lawn and garden, tools and paint, and other (which includes initial franchise revenue of $3.3 million and $5.2 million for the 13 weeks ended May 3, 2014 and May 4, 2013, respectively).
		13 Weeks Ended May 3, 2014
	Thousands	Hometown		Outlet			Total
	Net sales
	Appliances	$	245,526	$	137,528		$	383,054
	Lawn and garden	95,340		4,891			100,231
	Tools and paint	46,137		4,491			50,628
	Other	31,533		24,408			55,941
	Total	418,536		171,318			589,854
	Costs and expenses
	Cost of sales and occupancy	312,154		133,801			445,955
	Selling and administrative	98,837		36,442			135,279
	Depreciation	651		1,637			2,288
	Total	411,642		171,880			583,522
	Operating income (loss)	$	6,894	$	(562	)	$	6,332
	Total assets	$	658,267	$	204,920		$	863,187
	Capital expenditures	$	679	$	3,261		$	3,940
		13 Weeks Ended May 4, 2013
	Thousands	Hometown		Outlet			Total
	Net sales
	Appliances	$	275,407	$	124,263		$	399,670
	Lawn and garden	96,008		5,946			101,954
	Tools and paint	47,691		3,443			51,134
	Other	25,697		22,662			48,359
	Total	444,803		156,314			601,117
	Costs and expenses
	Cost of sales and occupancy	333,884		112,985			446,869
	Selling and administrative	100,141		27,047			127,188
	Depreciation	866		1,475			2,341
	Total	434,891		141,507			576,398
	Operating income	$	9,912	$	14,807		$	24,719
	Total assets	$	666,132	$	162,161		$	828,293
	Capital expenditures	$	624	$	385		$	1,009

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	3-May-14
Commitments and Contingencies Disclosure [Abstract]	'
COMMITMENTS AND CONTINGENCIES	'
	COMMITMENTS AND CONTINGENCIES
	We are subject to various legal and governmental proceedings arising out of the ordinary course of business, the outcome of which, individually or in the aggregate, in the opinion of management, would not have a material adverse effect on our business, financial position, results of operations, or cash flows.

Income_Per_Common_Share

Income Per Common Share	3 Months Ended
	3-May-14
Earnings Per Share [Abstract]	'
INCOME PER COMMON SHARE	'
	INCOME PER COMMON SHARE
	Basic income per common share is calculated by dividing net income by the weighted average number of common shares outstanding for each period. Diluted income per common share also includes the dilutive effect of potential common shares.
	The following table sets forth the components used to calculate basic and diluted income per common share attributable to our stockholders.
		13 Weeks Ended		13 Weeks Ended
		May 3, 2014		May 4, 2013
	Thousands except income per common share
	Basic weighted average shares	22,666		23,100
	Dilutive effect of restricted stock	—		—
	Diluted weighted average shares	22,666		23,100
	Net income	$	3,679	$	14,997
	Income per common share:
	Basic	$	0.16	$	0.65
	Diluted	$	0.16	$	0.65

Equity

Equity	3 Months Ended
	3-May-14
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
EQUITY	'
	EQUITY
	Stock-based Compensation
	At the Company's Annual Meeting of Stockholders held on May 14, 2013 the stockholders approved the Sears Hometown and Outlet Stores, Inc. Amended and Restated 2012 Stock Plan. Four million shares of the Company's common stock are reserved for issuance under the plan. A total of 89,221 shares of restricted stock were granted in the second quarter of 2013 under the plan to a group of eligible individuals (as defined in the plan), all of whom were employees of the Company at the time of the grant. We are authorized to grant stock options and to make other awards to eligible plan participants pursuant to the Amended and Restated 2012 Stock Plan. The Company has made no stock-option or other awards under the plan.
	We account for stock-based compensation using the fair value method in accordance with accounting standards regarding share-based payment transactions. During the first quarter of 2014 we recorded $0.3 million in total compensation expense related to the 84,334 shares of restricted stock (none of which had vested and excluding 4,887 shares forfeited as of May 3, 2014). At May 3, 2014, we had $2.6 million in total unrecognized compensation cost related to the 84,334 shares of non-vested restricted stock, which cost we expect to recognize over approximately the next two years.
	The 84,334 shares of restricted stock will vest, if at all, on May 16, 2016 in accordance with and subject to the terms and conditions of restricted-stock agreements, including forfeiture conditions, and the Amended and Restated 2012 Stock Plan. The fair value of these awards is equal to the market price of our common stock on the date of grant. We do not currently have a broad-based program that provides for restricted-stock awards on an annual basis. Changes in restricted-stock awards for 2014 were as follows:
		13 Weeks Ended May 3, 2014
	(Shares in Thousands)	Shares		Weighted-Average Fair Value on Date of Grant
	Beginning of year balance	87		44.45
	Granted	—		$	—
	Vested	—		—
	Forfeited	(3	)	44.45
	Balance at 5/3/2014	84		$	44.45
	Share Repurchase Program
	On August 28, 2013 the Company's Board of Directors authorized a $25 million repurchase program for the Company's outstanding shares of common stock. The timing and amount of repurchases depend on various factors, including market conditions, the Company's capital position and internal cash generation, and other factors. The Company's repurchase program does not include specific price targets, may be executed through open-market, privately negotiated, and other transactions that may be available, and may include utilization of Rule 10b5-1 plans. The repurchase program does not obligate the Company to repurchase any dollar amount, or any number of shares, of common stock. The repurchase program does not have a termination date, and the Company may suspend or terminate the repurchase program at any time.
	Shares that are repurchased by the Company pursuant to the repurchase program will be retired and resume the status of authorized and unissued shares of common stock.
	No shares were repurchased during the 13 weeks ended May 3, 2014. At May 3, 2014 we had $12.5 million of remaining authorization under the repurchase program.

Background_and_Basis_of_Presen1

Background and Basis of Presentation (Policies)	3 Months Ended
	3-May-14
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments
	We determine the fair value of financial instruments in accordance with standards pertaining to fair value measurements. Such standards define fair value and establish a framework for measuring fair value under GAAP. Under fair value measurement accounting standards, fair value is considered to be the exchange price in an orderly transaction between market participants to sell an asset or transfer a liability at the measurement date. We report the fair value of financial assets and liabilities based on the fair value hierarchy prescribed by accounting standards for fair value measurements, which prioritizes the inputs to valuation techniques used to measure fair value into three levels, as follows:
	Level 1 inputs—unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. An active market for the asset or liability is one in which transactions for the asset or liability occurs with sufficient frequency and volume to provide ongoing pricing information.
	Level 2 inputs—inputs other than quoted market prices included in Level 1 that are observable, either directly or indirectly, for the asset or liability. Level 2 inputs include, but are not limited to, quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted market prices that are observable for the asset or liability, such as interest rate curves and yield curves observable at commonly quoted intervals, volatilities, credit risk and default rates.
	Level 3 inputs—unobservable inputs for the asset or liability.
	Cash and cash equivalents (level 1), accounts receivable, short-term debt (level 2), merchandise payables, and accrued expenses are reflected in the Condensed Consolidated Balance Sheets at cost, which approximates fair value due to the short-term nature of these instruments. For short-term debt, the variable interest rate is a significant input in our fair value assessments.
	We measure certain non-financial assets and liabilities, including long-lived assets, at fair value on a non-recurring basis.
	The Company was not required to measure any other significant non-financial asset or liability at fair value as of May 3, 2014.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity
	In April 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standards update which modifies the requirements for disposals to qualify as discontinued operations and expands related disclosure requirements. The update will be effective in the first quarter of 2015 and is not expected to have a material impact on our consolidated financial position, results of operations, or cash flows.
	Revenue from Contracts with Customers
	In May 2014, the FASB issued an accounting standards update which establishes a comprehensive revenue recognition standard for virtually all industries in U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. The update is effective in 2017 and we are currently evaluating the potential impact. Accordingly, we cannot estimate the effect on our consolidated financial position, results of operations, or cash flows.

Other_Current_and_LongTerm_Lia1

Other Current and Long-Term Liabilities (Tables)	3 Months Ended
	3-May-14
Payables and Accruals [Abstract]	'
Schedule of Accrued Expenses and Other Long-term Liabilities	'
	Other current and long-term liabilities consist of the following:
	Thousands	May 3,		May 4,		February 1,
		2014		2013		2014
	Customer deposits	33,862		39,945		35,547
	Sales and other taxes	13,690		15,142		11,403
	Accrued expenses	8,551		23,068		9,523
	Payroll and related items	7,034		5,563		8,105
	Total Other current and long-term liabilities	$	63,137	$	83,718	$	64,578

Related_Party_Agreements_and_T1

Related Party Agreements and Transactions (Tables)	3 Months Ended
	3-May-14
Related Party Transactions [Abstract]	'
Schedule of Related Party Transactions	'
	The following table summarizes the results of the transactions with Sears Holdings reflected in the Company’s Condensed Consolidated Financial Statements:
		13 Weeks Ended
		May 3,		May 4,
	Thousands	2014		2013
	Net Commissions from Sears Holdings Corporation (1)	$	28,169	$	22,766
	Purchases related to cost of sales and occupancy	407,510		428,496
	Services	5,415		5,126
	(1) We reduced the amount previously presented for the 13 weeks ended May 4, 2013 to exclude all transactions in which SHO received the entire sales revenue for on-line sales made to unrelated third-parties that were generated through Sears Holdings' websites. The excluded amount for the 13 weeks ended May 4, 2013 was $16.6 million.

Summary_of_Segment_Data_Tables

Summary of Segment Data (Tables)	3 Months Ended
	3-May-14
Segment Reporting [Abstract]	'
Schedule of Segment Data	'
		13 Weeks Ended May 3, 2014
	Thousands	Hometown		Outlet			Total
	Net sales
	Appliances	$	245,526	$	137,528		$	383,054
	Lawn and garden	95,340		4,891			100,231
	Tools and paint	46,137		4,491			50,628
	Other	31,533		24,408			55,941
	Total	418,536		171,318			589,854
	Costs and expenses
	Cost of sales and occupancy	312,154		133,801			445,955
	Selling and administrative	98,837		36,442			135,279
	Depreciation	651		1,637			2,288
	Total	411,642		171,880			583,522
	Operating income (loss)	$	6,894	$	(562	)	$	6,332
	Total assets	$	658,267	$	204,920		$	863,187
	Capital expenditures	$	679	$	3,261		$	3,940
		13 Weeks Ended May 4, 2013
	Thousands	Hometown		Outlet			Total
	Net sales
	Appliances	$	275,407	$	124,263		$	399,670
	Lawn and garden	96,008		5,946			101,954
	Tools and paint	47,691		3,443			51,134
	Other	25,697		22,662			48,359
	Total	444,803		156,314			601,117
	Costs and expenses
	Cost of sales and occupancy	333,884		112,985			446,869
	Selling and administrative	100,141		27,047			127,188
	Depreciation	866		1,475			2,341
	Total	434,891		141,507			576,398
	Operating income	$	9,912	$	14,807		$	24,719
	Total assets	$	666,132	$	162,161		$	828,293
	Capital expenditures	$	624	$	385		$	1,009

Income_Per_Common_Share_Tables

Income Per Common Share (Tables)	3 Months Ended
	3-May-14
Earnings Per Share [Abstract]	'
Schedule of Earnings Per Share, Basic and Diluted	'
	The following table sets forth the components used to calculate basic and diluted income per common share attributable to our stockholders.
		13 Weeks Ended		13 Weeks Ended
		May 3, 2014		May 4, 2013
	Thousands except income per common share
	Basic weighted average shares	22,666		23,100
	Dilutive effect of restricted stock	—		—
	Diluted weighted average shares	22,666		23,100
	Net income	$	3,679	$	14,997
	Income per common share:
	Basic	$	0.16	$	0.65
	Diluted	$	0.16	$	0.65

Equity_Tables

Equity (Tables)	3 Months Ended
	3-May-14
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Schedule of Restricted Stock Award Activity	'
	We do not currently have a broad-based program that provides for restricted-stock awards on an annual basis. Changes in restricted-stock awards for 2014 were as follows:
		13 Weeks Ended May 3, 2014
	(Shares in Thousands)	Shares		Weighted-Average Fair Value on Date of Grant
	Beginning of year balance	87		44.45
	Granted	—		$	—
	Vested	—		—
	Forfeited	(3	)	44.45
	Balance at 5/3/2014	84		$	44.45

Background_and_Basis_of_Presen2

Background and Basis of Presentation (Details)	3 Months Ended
	3-May-14
	segment
	store
	state
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Number of stores	1,250
Number of states in which the Company operates	50
Number of operating segments	2

Other_Current_and_LongTerm_Lia2

Other Current and Long-Term Liabilities (Details) (USD $)	3-May-14	Feb. 01, 2014	4-May-13
In Thousands, unless otherwise specified
Payables and Accruals [Abstract]	'	'	'
Customer deposits	$33,862	$35,547	$39,945
Sales and other taxes	13,690	11,403	15,142
Accrued expenses	8,551	9,523	23,068
Payroll and related items	7,034	8,105	5,563
Total Other current and long-term liabilities	$63,137	$64,578	$83,718

Income_Taxes_Details

Income Taxes (Details) (USD $)	3-May-14	Feb. 01, 2014	4-May-13
In Millions, unless otherwise specified
Income Tax Disclosure [Abstract]	'	'	'
Deferred tax assets	$55.60	$58	$71.80

Related_Party_Agreements_and_T2

Related Party Agreements and Transactions (Details) (USD $)	3 Months Ended			3 Months Ended
	3-May-14	3-May-14	Oct. 11, 2012	3-May-14		4-May-13
		ESL [Member]	ESL [Member]	Sears Holdings Corporation [Member]		Sears Holdings Corporation [Member]
Related Party Transaction [Line Items]	'	'	'	'		'
Beneficial interest acquired by related party, percentage	'	48.40%	49.80%	'		'
Net Commissions from Sears Holdings Corporation	'	'	'	$28,169,000	[1]	$22,766,000	[1]
Purchases related to cost of sales and occupancy	'	'	'	407,510,000		428,496,000
Services	'	'	'	5,415,000		5,126,000
Exclusion of on-line sales	$16,600,000	'	'	'		'
Invoice payment term	'	'	'	'10 days		'
[1]	We reduced the amount previously presented for the 13 weeks ended May 4, 2013 to exclude all transactions in which SHO received the entire sales revenue for on-line sales made to unrelated third-parties that were generated through Sears Holdings' websites. The excluded amount for the 13 weeks ended May 4, 2013 was $16.6 million.

Financing_Arrangements_Details

Financing Arrangements (Details) (Senior ABL Facility [Member], USD $)	3 Months Ended
	3-May-14
Debt Instrument [Line Items]	'
Covenant, maximum percentage of Loan Cap	25.00%
Covenant, component of aggregate commitment calculation	$50,000,000
Covenant, fixed charge coverage ratio	1.1
Covenant, period of credit extensions outstanding	'120 days
LIBOR [Member]	'
Debt Instrument [Line Items]	'
Basis spread on variable rate	2.40%
Base Rate [Member]	'
Debt Instrument [Line Items]	'
Basis spread on variable rate	4.50%
Revolving Credit Facility [Member]	'
Debt Instrument [Line Items]	'
Aggregate maximum borrowings	250,000,000
Increases in aggregate principal	100,000,000
Letter of Credit [Member]	'
Debt Instrument [Line Items]	'
Aggregate maximum borrowings	75,000,000
Swingline Loans [Member]	'
Debt Instrument [Line Items]	'
Aggregate maximum borrowings	25,000,000
Separation [Member]	'
Debt Instrument [Line Items]	'
Remaining borrowing capacity	98,100,000
Separation [Member] | Letter of Credit [Member]	'
Debt Instrument [Line Items]	'
Remaining borrowing capacity	146,300,000
Amount outstanding	$5,600,000

Summary_of_Segment_Data_Detail

Summary of Segment Data (Details) (USD $)	3 Months Ended
	3-May-14	4-May-13	Feb. 01, 2014
Segment Reporting Information [Line Items]	'	'	'
Initial franchise revenue	$3,300,000	$5,200,000	'
Net sales	589,854,000	601,117,000	'
Cost of sales and occupancy	445,955,000	446,869,000	'
Selling and administrative	135,279,000	127,188,000	'
Depreciation	2,288,000	2,341,000	'
Total costs and expenses	583,522,000	576,398,000	'
Operating income (loss)	6,332,000	24,719,000	'
Total assets	863,187,000	828,293,000	847,185,000
Capital expenditures	3,940,000	1,009,000	'
Appliances [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Net sales	383,054,000	399,670,000	'
Lawn and Garden [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Net sales	100,231,000	101,954,000	'
Tools and Paint [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Net sales	50,628,000	51,134,000	'
Other [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Net sales	55,941,000	48,359,000	'
Sears Hometown and Hardware [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Net sales	418,536,000	444,803,000	'
Cost of sales and occupancy	312,154,000	333,884,000	'
Selling and administrative	98,837,000	100,141,000	'
Depreciation	651,000	866,000	'
Total costs and expenses	411,642,000	434,891,000	'
Operating income (loss)	6,894,000	9,912,000	'
Total assets	658,267,000	666,132,000	'
Capital expenditures	679,000	624,000	'
Sears Hometown and Hardware [Member] | Appliances [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Net sales	245,526,000	275,407,000	'
Sears Hometown and Hardware [Member] | Lawn and Garden [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Net sales	95,340,000	96,008,000	'
Sears Hometown and Hardware [Member] | Tools and Paint [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Net sales	46,137,000	47,691,000	'
Sears Hometown and Hardware [Member] | Other [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Net sales	31,533,000	25,697,000	'
Sears Outlet [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Net sales	171,318,000	156,314,000	'
Cost of sales and occupancy	133,801,000	112,985,000	'
Selling and administrative	36,442,000	27,047,000	'
Depreciation	1,637,000	1,475,000	'
Total costs and expenses	171,880,000	141,507,000	'
Operating income (loss)	-562,000	14,807,000	'
Total assets	204,920,000	162,161,000	'
Capital expenditures	3,261,000	385,000	'
Sears Outlet [Member] | Appliances [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Net sales	137,528,000	124,263,000	'
Sears Outlet [Member] | Lawn and Garden [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Net sales	4,891,000	5,946,000	'
Sears Outlet [Member] | Tools and Paint [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Net sales	4,491,000	3,443,000	'
Sears Outlet [Member] | Other [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Net sales	$24,408,000	$22,662,000	'

Income_Per_Common_Share_Detail

Income Per Common Share (Details) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	3-May-14	4-May-13
Earnings Per Share [Abstract]	'	'
Basic weighted average shares	22,666	23,100
Dilutive effect of restricted stock	0	0
Diluted weighted average shares	22,666	23,100
Net income	$3,679	$14,997
Income per common share:	'	'
Basic (in dollars per share)	$0.16	$0.65
Diluted (in dollars per share)	$0.16	$0.65

Equity_Narrative_Details

Equity (Narrative) (Details) (USD $)	0 Months Ended	3 Months Ended		3 Months Ended
In Millions, except Share data, unless otherwise specified	Aug. 29, 2013	3-May-14	14-May-13	3-May-14	Aug. 03, 2013	3-May-14
				Restricted Stock [Member]	Restricted Stock [Member]	Restricted Stock [Member]
						May 16, 2016 [Member]
Stock-based Compensation	'	'	'	'	'	'
Shares reserved under plan	'	'	4,000,000	'	'	'
Stock granted	'	'	'	84,334	89,221	84,334
Share-based compensation expense	'	'	'	$0.30	'	'
Forfeited in period	'	'	'	4,887	'	'
Total unrecognized compensation	'	'	'	2.6	'	'
Period for recognition	'	'	'	'2 years	'	'
Share Repurchase Program	'	'	'	'	'	'
Authorized amount	25	'	'	'	'	'
Remaining authorized repurchase amount	'	$12.50	'	'	'	'

Equity_Restricted_Stock_Awards

Equity (Restricted Stock Awards) (Details) (Restricted Stock [Member], USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	3-May-14
Restricted Stock [Member]	'
Shares	'
Beginning of year balance	87
Granted	0
Vested	0
Forfeited	-3
Balance at end of period	84
Weighted-Average Fair Value on Date of Grant	'
Beginning of year balance (in dollars per share)	$44.45
Granted (in dollars per share)	$0
Vested (in dollars per share)	$0
Forfeited (in dollars per share)	$44.45
Balance at end of period (in dollars per share)	$44.45