Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 02, 2023 | Apr. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 02, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SFM | |
Entity Registrant Name | Sprouts Farmers Market, Inc. | |
Entity Central Index Key | 0001575515 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 103,048,290 | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-36029 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0331600 | |
Entity Address, Address Line One | 5455 East High Street | |
Entity Address, Address Line Two | Suite 111 | |
Entity Address, City or Town | Phoenix | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85054 | |
City Area Code | 480 | |
Local Phone Number | 814-8016 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 02, 2023 | Jan. 01, 2023 | Apr. 03, 2022 |
Current assets: | |||
Cash and cash equivalents | $ 294,905 | $ 293,233 | |
Accounts receivable, net | 12,404 | 16,108 | |
Inventories | 306,940 | 310,545 | |
Prepaid expenses and other current assets | 41,699 | 53,918 | |
Total current assets | 655,948 | 673,804 | |
Property and equipment, net of accumulated depreciation | 715,342 | 722,241 | |
Operating lease assets, net | 1,195,187 | 1,106,524 | |
Intangible assets | 208,060 | 184,960 | |
Goodwill | 381,751 | 368,878 | |
Other assets | 13,106 | 13,973 | |
Total assets | 3,169,394 | 3,070,380 | |
Current liabilities: | |||
Accounts payable | 187,948 | 172,904 | |
Accrued liabilities | 148,865 | 151,306 | |
Accrued salaries and benefits | 48,160 | 61,574 | |
Accrued income tax | 5,456 | 0 | |
Current portion of operating lease liabilities | 123,726 | 135,584 | |
Current portion of finance lease liabilities | 976 | 1,012 | |
Total current liabilities | 515,131 | 522,380 | |
Long-term operating lease liabilities | 1,266,282 | 1,145,173 | |
Long-term debt and finance lease liabilities | 233,720 | 258,902 | |
Other long-term liabilities | 36,421 | 36,340 | |
Deferred income tax liability | 66,910 | 61,123 | |
Total liabilities | 2,118,464 | 2,023,918 | |
Commitments and contingencies (Note 7) | |||
Stockholders’ equity: | |||
Undesignated preferred stock; $0.001 par value; 10,000,000 shares authorized, no shares issued and outstanding | 0 | 0 | |
Common stock, $0.001 par value; 200,000,000 shares authorized,103,470,717 shares issued and outstanding, April 2, 2023; 105,072,756 shares issued and outstanding, January 1, 2023 | 104 | 105 | |
Additional paid-in capital | 753,822 | 726,345 | |
Retained earnings | 297,004 | 320,012 | |
Total stockholders’ equity | 1,050,930 | 1,046,462 | $ 1,011,974 |
Total liabilities and stockholders’ equity | $ 3,169,394 | $ 3,070,380 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Apr. 02, 2023 | Jan. 01, 2023 |
Statement of Financial Position [Abstract] | ||
Undesignated preferred stock, par value | $ 0.001 | $ 0.001 |
Undesignated preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Undesignated preferred stock, shares issued | 0 | 0 |
Undesignated preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 103,470,717 | 105,072,756 |
Common stock, shares outstanding | 103,470,717 | 105,072,756 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 1,733,310 | $ 1,641,161 |
Cost of sales | 1,083,248 | 1,029,413 |
Gross profit | 650,062 | 611,748 |
Selling, general and administrative expenses | 486,195 | 459,910 |
Depreciation and amortization (exclusive of depreciation included in cost of sales) | 34,068 | 31,820 |
Store closure and other costs, net | 28,277 | 377 |
Income from operations | 101,522 | 119,641 |
Interest expense, net | 2,220 | 3,039 |
Income before income taxes | 99,302 | 116,602 |
Income tax provision | 23,142 | 28,295 |
Net income | $ 76,160 | $ 88,307 |
Net income per share: | ||
Basic | $ 0.73 | $ 0.80 |
Diluted | $ 0.73 | $ 0.79 |
Weighted average shares outstanding: | ||
Basic | 103,827 | 110,903 |
Diluted | 104,876 | 111,833 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 76,160 | $ 88,307 |
Other comprehensive income (loss), net of tax | ||
Unrealized gains (losses) on cash flow hedging activities, net of income tax of $1,240 during the thirteen weeks ended April 3, 2022 | 0 | 3,586 |
Reclassification of net gains (losses) on cash flow hedges to net income, net of income tax of ($377) during the thirteen weeks ended April 3, 2022 | 0 | (1,091) |
Total other comprehensive income (loss) | 0 | 2,495 |
Comprehensive income | $ 76,160 | $ 90,802 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Apr. 03, 2022 USD ($) | |
Statement of Comprehensive Income [Abstract] | |
Income tax expenses (Benefit) on cash flow hedging activities | $ 1,240 |
Income tax expenses (Benefit) for reclassification of net gains (losses) on cash flow hedges | $ (377) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Jan. 02, 2022 | $ 959,876 | $ 111 | $ 704,701 | $ 258,822 | $ (3,758) |
Beginning Balance, Shares at Jan. 02, 2022 | 111,114,374 | ||||
Net income | 88,307 | 88,307 | |||
Other comprehensive income (loss) | 2,495 | 2,495 | |||
Issuance of shares under stock plans | 2,555 | 2,555 | |||
Issuance of shares under stock plans, Shares | 610,101 | ||||
Repurchase and retirement of common stock | $ (45,715) | $ (1) | (45,714) | ||
Repurchase and retirement of common stock, Shares | (1,481,187) | (1,481,187) | |||
Share-based compensation | $ 4,456 | 4,456 | |||
Issuance of shares for acquisition | 0 | ||||
Ending Balance at Apr. 03, 2022 | 1,011,974 | $ 110 | 711,712 | 301,415 | $ (1,263) |
Ending Balance, Shares at Apr. 03, 2022 | 110,243,288 | ||||
Beginning Balance at Jan. 01, 2023 | 1,046,462 | $ 105 | 726,345 | 320,012 | |
Beginning Balance, Shares at Jan. 01, 2023 | 105,072,756 | ||||
Net income | 76,160 | 76,160 | |||
Other comprehensive income (loss) | 0 | ||||
Issuance of shares under stock plans | 5,488 | $ 1 | 5,487 | ||
Issuance of shares under stock plans, Shares | 882,014 | ||||
Repurchase and retirement of common stock | $ (99,171) | $ (3) | 99,168 | ||
Repurchase and retirement of common stock, Shares | (3,038,411) | (3,038,411) | |||
Share-based compensation | $ 3,852 | 3,852 | |||
Issuance of shares for acquisition, Shares | 554,358 | ||||
Issuance of shares for acquisition | 18,139 | $ 1 | 18,138 | ||
Ending Balance at Apr. 02, 2023 | $ 1,050,930 | $ 104 | $ 753,822 | $ 297,004 | |
Ending Balance, Shares at Apr. 02, 2023 | 103,470,717 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Operating activities | ||
Net income | $ 76,160 | $ 88,307 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 34,912 | 32,720 |
Operating lease asset amortization | 30,696 | 28,043 |
Impairment of assets | 27,845 | 171 |
Share-based compensation | 3,852 | 4,456 |
Deferred income taxes | (386) | 2,291 |
Other non-cash items | 14 | 313 |
Changes in operating assets and liabilities, net of effects from acquisition: | ||
Accounts receivable | 6,241 | 9,770 |
Inventories | 5,400 | (6,790) |
Prepaid expenses and other current assets | 9,528 | 3,613 |
Other assets | 2,609 | 1,757 |
Accounts payable | 27,006 | 27,645 |
Accrued liabilities | (2,024) | (6,857) |
Accrued salaries and benefits | (13,712) | (14,106) |
Accrued income tax | 5,456 | 15,275 |
Operating lease liabilities | (33,956) | (32,180) |
Other long-term liabilities | 179 | (1,399) |
Cash flows from operating activities | 179,820 | 153,029 |
Investing activities | ||
Purchases of property and equipment | (47,044) | (27,227) |
Payments for acquisition, net of cash acquired | (13,042) | 0 |
Cash flows used in investing activities | (60,086) | (27,227) |
Financing activities | ||
Proceeds from revolving credit facilities | 0 | 62,500 |
Payments on revolving credit facilities | (25,000) | (62,500) |
Payments on finance lease liabilities | (219) | (176) |
Payments of deferred financing costs | 0 | (3,373) |
Repurchase of common stock | (98,349) | (45,715) |
Proceeds from exercise of stock options | 5,488 | 2,555 |
Cash flows used in financing activities | (118,080) | (46,709) |
Increase in cash, cash equivalents, and restricted cash | 1,654 | 79,093 |
Cash, cash equivalents, and restricted cash at beginning of the period | 295,192 | 247,004 |
Cash, cash equivalents, and restricted cash at the end of the period | 296,846 | 326,097 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 3,641 | 3,044 |
Cash refunded for income taxes | 54 | 46 |
Leased assets obtained in exchange for new operating lease liabilities | 138,662 | 42,176 |
Supplemental disclosure of non-cash investing and financing activities | ||
Property and equipment in accounts payable and accrued liabilities | 20,924 | 15,666 |
Issuance of shares for acquisition | $ 18,139 | $ 0 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 02, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Sprouts Farmers Market, Inc., a Delaware corporation, through its subsidiaries, offers a unique food specialty retail experience featuring an open layout with fresh produce at the heart of the store. The Company continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. As of April 2, 2023 , the Company operated 395 stores in 23 states. For convenience, the “Company” is used to refer collectively to Sprouts Farmers Market, Inc. and unless the context otherwise requires, its subsidiaries. The accompanying unaudited consolidated financial statements include the accounts of the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and are in the form prescribed by the Securities and Exchange Commission in instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company's financial position, results of operations and cash flows for the periods indicated. All material intercompany accounts and transactions have been eliminated in consolidation. Interim results are not necessarily indicative of results for any other interim period or for a full fiscal year. The information included in these consolidated financial statements and notes thereto should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations included herein and Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and notes thereto for the fiscal year ended January 1, 2023 (“fiscal year 2022”) included in the Company’s Annual Report on Form 10-K, filed on March 2, 2023. The year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The Company reports its results of operations on a 52- or 53-week fiscal calendar ending on the Sunday closest to December 31. The fiscal year ending December 31, 2023 (“fiscal year 2023”) and fiscal year 2022 are 52-week years. The Company reports its results of operations on a 13-week quarter, except for 53-week fiscal years (in which the fourth quarter has 14 weeks). All dollar amounts are in thousands, unless otherwise noted. Revision of previously issued financial statements T he Company identified an error in the financing activities section of its consolidated statements of cash flows for the thirteen weeks ended April 3, 2022, related to the presentation of proceeds from and repayments of borrowings associated with a modification of the Company's revolving credit facility on March 25, 2022. The correction of the error did not have any impact on the previously reported consolidated balance sheets, statements of income, or statements of comprehensive income, nor did it have any impact on total cash flows from operating activities or used in investing or financing activities. Although the Company has determined that the error did not have a material impact on its previously issued consolidated financial statements, the Company revised the presentation of cash flows from financing activities to reflect the proceeds from borrowings under the revolving credit facility of $ 62.5 million as a cash inflow from financing activities, and the repayments of borrowings under the revolving credit facility of $ 62.5 million as a cash outflow from financing activities. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 02, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Revenue Recognition The Company’s performance obligations are satisfied upon the transfer of goods to the customer, which occurs at the point of sale, and payment from customers is also due at the time of sale. Proceeds from the sale of gift cards are recorded as a liability at the time of sale and recognized as sales when they are redeemed by the customer and the performance obligation is satisfied by the Company. The Company’s gift cards do not expire. Based on historical redemption rates, a small and relatively stable percentage of gift cards will never be redeemed, referred to as "breakage." Estimated breakage revenue is recognized over time in proportion to actual gift card redemptions and was not material in any period presented. A summary of the activity and balances in the gift card liability, net is as follows: Thirteen weeks ended April 2, 2023 April 3, 2022 Balance, beginning of year $ 10,906 $ 12,586 Gift cards issued during the period but not redeemed (1) 1,222 1,192 Revenue recognized from beginning liability ( 2,582 ) ( 3,276 ) Balance, end of year $ 9,546 $ 10,502 (1) net of estimated breakage The nature of goods the Company transfers to customers at the point of sale are inventories, consisting of merchandise purchased for resale. The Company does not have any material contract assets or receivables from contracts with customers, any revenue recognized in the current period from performance obligations satisfied in previous periods, any contract performance obligations, or any material costs to obtain or fulfill a contract as of April 2, 2023 . Restricted Cash Restricted cash relates to the Company's defined benefit plan forfeitures and the Company's healthcare, general liability and workers’ compensation plan benefits of approximately $ 1.9 million and $ 2.0 million as of April 2, 2023 and January 1, 2023 , respectively. These balances are included in prepaid expenses and other current assets in the consolidated balance sheets. Recently Issued Accounting Pronouncements Not Yet Adopted No new accounting pronouncements issued or effective during the thirteen weeks ended April 2, 2023 had, or are expected to have, a material impact on the Company’s consolidated financial statements. |
Goodwill
Goodwill | 3 Months Ended |
Apr. 02, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The Company’s goodwill balance was $ 381.8 million and $ 368.9 million as of April 2, 2023 and January 1, 2023, respectively. As of April 2, 2023 and January 1, 2023 , the Company had no accumulated goodwill impairment losses. The goodwill was related to the acquisitions of Sunflower Farmers Market, Henry’s Farmers Market and Ronald Cohn, Inc. For further details, see Note 16, "Business Combination". A summary of the activity and balances in goodwill is as follows: Balance at January 1, 2023 Additions Balance at April 2, 2023 Goodwill $ 368,878 $ 12,873 $ 381,751 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 02, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The Company records its financial assets and liabilities in accordance with the framework for measuring fair value in accordance with GAAP. This framework establishes a fair value hierarchy that prioritizes the inputs used to measure fair value: Level 1: Quoted prices for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Fair value measurements of nonfinancial assets and nonfinancial liabilities are primarily used in the impairment analysis of goodwill, intangible assets and long-lived assets. The following tables present the fair value hierarchy for the Company’s financial liabilities measured at fair value on a recurring basis as of April 2, 2023 and January 1, 2023: April 2, 2023 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 225,000 $ — $ 225,000 Total financial liabilities $ — $ 225,000 $ — $ 225,000 January 1, 2023 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 250,000 $ — $ 250,000 Total financial liabilities $ — $ 250,000 $ — $ 250,000 The determination of fair values of certain tangible and intangible assets for purposes of the Company’s goodwill or long-lived asset impairment evaluation is based upon Level 3 inputs. When necessary, the Company uses third party market data and market participant assumptions to derive the fair value of its asset groupings, which primarily include right-of-use lease assets and property and equipment. Cash, cash equivalents, restricted cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued liabilities, and accrued salaries and benefits approximate fair value because of the short maturity of those instruments. Based on comparable open market transactions, the fair value of the long-term debt approximated carrying value as of April 2, 2023 and January 1, 2023 . |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Lease Liabilities | 3 Months Ended |
Apr. 02, 2023 | |
Long Term Debt And Finance Lease Liabilities [Abstract] | |
Long-Term Debt and Finance Lease Liabilities | 4. Long-Term Debt and Finance Lease Liabilities A summary of long-term debt and finance lease liabilities is as follows: As of Facility Maturity Interest Rate April 2, 2023 January 1, 2023 Senior secured debt $ 700.0 million Credit Agreement March 25, 2027 Variable $ 225,000 $ 250,000 Finance lease liabilities Various n/a 8,720 8,902 Long-term debt and finance lease liabilities $ 233,720 $ 258,902 Credit Agreement The Company’s subsidiary, Sprouts Farmers Markets Holdings, LLC (“Intermediate Holdings”), is the borrower under a credit agreement entered into on March 25, 2022 (the “Credit Agreement”). The Credit Agreement provides for a revolving credit facility (the "Revolving Credit Facility") with an initial aggregate commitment of $ 700.0 million. Amounts outstanding under the Credit Agreement may be increased from time to time in accordance with an expansion feature set forth in the Credit Agreement. The Company capitalized debt issuance costs of $ 3.4 million related to the Credit Agreement, which, combined with the remaining $ 0.5 million debt issuance costs in respect of that certain amended and restated credit agreement entered into on March 27, 2018, by and among the Company, Intermediate Holdings, certain lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent (the “Former Credit Facility”), which remained outstanding as of the time of Intermediate Holdings’ entry into the Credit Agreement, are being amortized on a straight-line basis to interest expense over the five-year term of the Credit Agreement. The Credit Agreement provides for a $ 70.0 million letter of credit sub-facility (the "Letter of Credit Sub-Facility") and a $ 50.0 million swingline facility. Letters of credit issued under the Credit Agreement reduce the capacity of Intermediate Holdings to borrow under the Revolving Credit Facility. Letters of credit totaling $ 21.6 million have been issued as of April 2, 2023 under the Letter of Credit Sub-Facility, primarily to support the Company’s insurance programs. Guarantees Obligations under the Credit Agreement are guaranteed by the Company and substantially all of its existing and future wholly-owned material domestic subsidiaries, and are secured by first-priority security interests in substantially all of the assets of the Company, Intermediate Holdings, and the subsidiary guarantors, including, without limitation, a pledge by the Company of its equity interest in Intermediate Holdings. Interest and Fees Loans under the Credit Agreement will initially bear interest, at the Company's option, either at the Term SOFR (with a floor of 0.00%) plus a 0.10 % SOFR adjustment and 1.00 % per annum or base rate (with a floor of 0.00%) plus 0.00 % per annum. The interest rate margins are subject to upward adjustments pursuant to a pricing grid based on the Company’s total net leverage ratio as set forth in the Credit Agreement and to upward or downward adjustments of up to 0.05 % based upon the achievement of certain diversity and sustainability-linked metric thresholds, as set forth in the Credit Agreement. Under the terms of the Credit Agreement, the Company is obligated to pay a commitment fee on the available unused amount of the commitments, which commitment fee ranges between 0.10 % to 0.225 % per annum, pursuant to a pricing grid based on the Company’s total net leverage ratio. The commitment fees are subject to upward or downward adjustments of up to 0.01 % based upon the achievement of certain diversity and sustainability-linked metric thresholds, as set forth in the Credit Agreement. As of April 2, 2023, loans outstanding under the Credit Agreement bore interest at Term SOFR (as defined in the Credit Agreement) plus a 0.10 % SOFR adjustment and 1.00 % per annum. As of April 2, 2023, outstanding letters of credit issued under the Credit Agreement were subject to a participation fee of 1.00 % per annum and an issuance fee of 0.125 % per annum. Payments and Borrowings The Credit Agreement is scheduled to mature, and the commitments thereunder will terminate on March 25, 2027 , subject to extensions as set forth therein. The Company may prepay loans and permanently reduce commitments under the Credit Agreement at any time in agreed-upon minimum principal amounts, without premium or penalty (except SOFR breakage costs, if applicable). In connection with the execution of the Credit Agreement, the Company's obligations under the Former Credit Facility were prepaid and terminated. During the thirteen weeks ended April 2, 2023 , the Company made no additional borrowings and made principal payments of $ 25.0 million, resulting in total outstanding debt under the Credit Agreement of $ 225.0 million as of April 2, 2023 . During 2022, the Company made no additional borrowings or principal payments, other than the net change of $ 62.5 million in the composition of the lending syndicate associated with a modification of the Company's revolving credit facility on March 25, 2022, resulting in total outstanding debt under the Credit Agreement of $ 250.0 million as of January 1, 2023. Subsequent to April 2, 2023 , the Company made a $ 25.0 million principal payment, resulting in total outstanding debt under the Credit Agreement of $ 200.0 million as of May 1, 2023. Covenants The Credit Agreement contains financial, affirmative and negative covenants. The negative covenants include, among other things, limitations on the Company’s ability to: • incur additional indebtedness; • grant additional liens; • enter into sale-leaseback transactions; • make loans or investments; • merge, consolidate or enter into acquisitions; • pay dividends or distributions; • enter into transactions with affiliates; • enter into new lines of business; • modify the terms of certain debt or other material agreements; and • change its fiscal year. Each of these covenants is subject to customary and other agreed-upon exceptions. In addition, the Credit Agreement requires that the Company and its subsidiaries maintain a maximum total net leverage ratio not to exceed 3.75 to 1.00, which ratio may be increased from time to time in connection with certain permitted acquisitions pursuant to conditions as set forth in the Credit Agreement, and a minimum interest coverage ratio not to be less than 3.00 to 1.00. Each of these covenants is tested as of the last day of each fiscal quarter. The Company was in compliance with all applicable covenants under the Credit Agreement as of April 2, 2023 . |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 02, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes The Company’s effective tax rate decreased to 23.3 % for the thirteen weeks ended April 2, 2023 , compared to 24.3 % for the thirteen weeks ended April 3, 2022 . The decrease in the effective tax rate is primarily due to an increase in excess tax benefits associated with share-based payment awards, partially offset by an increase of non-deductible executive compensation. The income tax effect resulting from excess tax benefits of share-based payment awards were $ 2.6 million and $ 1.5 million for the thirteen weeks ended April 2, 2023 and April 3, 2022, respectively. The Company files income tax returns for federal purposes and in many states. The Company’s tax filings remain subject to examination by applicable tax authorities for a certain length of time, generally three years, following the tax year to which those filings relate. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Apr. 02, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 6. Related Party Transactions On May 24, 2022, the Company appointed a new member to its board of directors who served as an executive officer of a company that is a supplier of nutrition bars and related products to the Company for resale. The director departed employment from this supplier on February 28, 2023, and the cost of sales recognized from this supplier during the thirteen weeks ended April 2, 2023 was immaterial. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 02, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | . Commitments and Contingencies The Company is exposed to claims and litigation matters arising in the ordinary course of business and uses various methods to resolve these matters that are believed to best serve the interests of the Company’s stakeholders. The Company’s primary contingencies are associated with self-insurance obligations and litigation matters. Self-insurance liabilities require significant judgment and actual claim settlements and associated expenses may differ from the Company’s current provisions for loss. Proposition 65 Coffee Action On April 13, 2010, an organization named Council for Education and Research on Toxics (“CERT”) filed a lawsuit in the Superior Court of the State of California, County of Los Angeles, against nearly 80 defendants who manufacture, package, distribute or sell brewed coffee, including the Company. CERT alleged that the defendants failed to provide warnings for their coffee products of exposure to the chemical acrylamide as required under California Health and Safety Code section 25249.5, the California Safe Drinking Water and Toxic Enforcement Act of 1986, better known as Proposition 65. CER T seeks equitable relief, i ncluding providing warnings to consumers of coffee products, as well as civil penalties. The Company, as part of a joint defense group, asserted multiple defenses against the lawsuit. On May 7, 2018, the trial court issued a ruling adverse to defendants on these defenses to liability. On October 1, 2019, before the court tried damages, remedies and attorneys' fees, California’s Office of Environmental Health Hazard Assessment adopted a regulation that exempted “Exposures to listed chemicals in coffee created by and inherent in the processes of roasting coffee beans or brewing coffee” from Proposition 65’s warning requirement. On August 25, 2020, the court granted the defense motion for summary judgment based on the regulation, and the case was dismissed. On November 20, 2020, CERT filed a notice of appeal to appeal the ruling on the defense motion for summary judgment. On October 26, 2022, the appellate court affirmed the trial court’s decision. In December 2022, CERT appealed this ruling to the Supreme Court of the State of California, which denied the petition for review in February 2023. Until the case is dismissed by the trial court, the Company is unable to predict or reasonably estimate any potential loss or effect on the Company or its operations. Accordingly, no loss contingency was recorded for this matter. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Apr. 02, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | . Stockholders’ Equity Share Repurchases On March 2, 2022, the Company's board of directors authorized a new $ 600 million share repurchase program for its common stock. The new authorization replaced the Company's then-existing share repurchase authorization of $ 300 million that was due to expire on March 3, 2024, of which $ 99.8 million remained available upon its replacement. No further shares may be repurchased under the $ 300 million authorization. The following table outlines the common stock share repurchase programs authorized by the Company’s board of directors and the related repurchase activity and available authorization as of April 2, 2023. Effective date Expiration date Amount Cost of Authorization March 2, 2022 December 31, 2023 $ 600,000 $ 286,472 $ 313,528 The shares under the Company’s repurchase programs may be purchased on a discretionary basis from time to time through the applicable expiration date, subject to general business and market conditions and other investment opportunities, through open market purchases, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans. The board’s authorization of the share repurchase programs does not obligate the Company to acquire any particular amount of common stock, and the repurchase programs may be commenced, suspended, or discontinued at any time. Share repurchase activity under the Company’s repurchase programs for the periods indicated was as follows (total cost in thousands): Thirteen weeks ended April 2, 2023 April 3, 2022 Number of common shares acquired 3,038,411 1,481,187 Average price per common share acquired $ 32.64 $ 30.86 Total cost of common shares acquired $ 99,171 $ 45,715 Shares purchased under the Company’s repurchase programs were subsequently retired and the excess of the repurchase price over par value was charged to retained earnings. The cost of common shares repurchased during the thirteen weeks ended April 2, 2023 included the 1 % excise tax imposed as part of the Inflation Reduction Act of 2022. Subsequent to April 2, 2023 and through the date of this filing, the Company repurchased an additional 0.5 million shares of common stock for $ 16.0 million. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Apr. 02, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 9. Net Income Per Share The computation of basic net income per share is based on the number of weighted average shares outstanding during the period. The computation of diluted net income per share includes the dilutive effect of share equivalents consisting of incremental shares deemed outstanding from the assumed exercise of options and unvested restricted stock units ("RSUs"). Performance share awards ("PSAs") are included in the computation of diluted net income per share only to the extent that the underlying performance conditions are satisfied prior to the end of the reporting period or would be satisfied if the end of the reporting period were the end of the related performance period, and if the effect would be dilutive. A reconciliation of the numerators and denominators of the basic and diluted net income per share calculations is as follows (in thousands, except per share amounts): Thirteen weeks ended April 2, 2023 April 3, 2022 Basic net income per share: Net income $ 76,160 $ 88,307 Weighted average shares outstanding 103,827 110,903 Basic net income per share $ 0.73 $ 0.80 Diluted net income per share: Net income $ 76,160 $ 88,307 Weighted average shares outstanding - 103,827 110,903 Dilutive effect of share-based awards: Assumed exercise of options to purchase shares 395 347 RSUs 481 470 PSAs 173 113 Weighted average shares and 104,876 111,833 Diluted net income per share $ 0.73 $ 0.79 For the thirteen weeks ended April 2, 2023 , the Company had 0.4 million options, 0.4 million RSUs and 0.5 million PSAs outstanding which were excluded from the computation of diluted net income per share as those awards would have been antidilutive or were performance awards with performance conditions not yet deemed met. For the thirteen weeks ended April 3, 2022 , the Company had 0.2 million options, 0.5 million RSUs, and 0.5 million PSAs outstanding which were excluded from the computation of diluted net income per share as those awards would have been antidilutive or were performance awards with performance conditions not yet deemed met. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Apr. 02, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | . Derivative Financial Instruments The Company did no t have any outstanding interest rate swap agreements as of April 2, 2023 and January 1, 2023. In December 2017, the Company entered into an interest rate swap agreement to manage its cash flow associated with variable interest rates. This forward contract was designated and qualified as a cash flow hedge, and its change in fair value was recorded as a component of other comprehensive income and reclassified into earnings in the same period or periods in which the forecasted transaction occurred. The forward contract consisted of five cash flow hedges with a notional dollar amount of $ 250.0 million, and each had a length of one year and matured annually from 2018 to 2022 . The gain or loss on these derivative instruments was recognized in other comprehensive income, net of tax, with the portion related to current period interest payments reclassified to interest expense, net on the consolidated statements of income. The following table summarizes these losses classified on the consolidated statements of income: Thirteen weeks ended April 2, 2023 April 3, 2022 Consolidated Statements of Interest expense, net $ — $ 1,468 |
Comprehensive Income
Comprehensive Income | 3 Months Ended |
Apr. 02, 2023 | |
Equity [Abstract] | |
Comprehensive Income | 11. Comprehensive Income The following table presents the changes in accumulated other comprehensive income (loss) for the thirteen weeks ended April 3, 2022. Cash Flow Balance at January 2, 2022 $ ( 3,758 ) Other comprehensive income (loss), net of tax Unrealized gains on cash flow hedging activities, net of income tax of $ 1,240 3,586 Reclassification of net losses on cash flow hedges to net income, net of income 377 ) ( 1,091 ) Total other comprehensive income (loss) 2,495 Balance at April 3, 2022 $ ( 1,263 ) Amounts reclassified from accumulated other comprehensive income (loss) were included within interest expense, net on the consolidated statements of income. |
Business Combination
Business Combination | 3 Months Ended |
Apr. 02, 2023 | |
Business Combination, Description [Abstract] | |
Business Combination | Business Combination On March 20, 2023 , the Company completed its acquisition of Ronald Cohn, Inc ., a corporation that owned two stores located in California operating under the ‘Sprouts Farmers Market’ name pursuant to a legacy trademark license arrangement. The aggregate consideration paid in the transaction consisted of 0.6 million of the Company’s common shares valued at $ 18.1 million using the closing price of the Company's common stock on March 20, 2023 and cash consideration of $ 13.0 million, subject to customary post-closing adjustments. The Company accounted for this transaction as a business combination in accordance with the acquisition method of accounting, which requires that the purchase price be allocated to the assets and liabilities acquired based on their estimated fair values as of the acquisition date. Acquisition-related costs were immaterial and were expensed as incurred. The financial results of the acquired stores have been included in the Company’s consolidated financial statements from the date of acquisition. The acquired stores' results of operations were not material to the Company's consolidated results during the thirteen weeks ended April 2, 2023. As of May 1, 2023, the initial accounting for this acquisition was incomplete pending determination of working capital adjustments and the fair value of certain assets acquired and liabilities assumed. The net purchase price was initially allocated to the net tangible assets of ($ 4.9 ) million and a reacquired right intangible asset of $ 23.1 million based on their preliminary fair values on the acquisition date. The remaining unallocated net purchase price of $ 12.9 million was recorded as goodwill. Goodwill represents the future economic benefits to the Company from the acquisition, which include the Company's ability to fully control the Sprouts Farmers Market brand by termination of the legacy trademark license agreement and allowing further expansion opportunities in Southern California. The goodwill is not expected to be deductible for tax purposes. The provisional fair value estimates are subject to adjustment as additional information is obtained within the measurement period, which may not exceed twelve months from the acquisition date. |
Segments
Segments | 3 Months Ended |
Apr. 02, 2023 | |
Segment Reporting [Abstract] | |
Segments | 12. Segments The Company has one reportable and one operating segment. In accordance with ASC 606, the following table represents a disaggregation of revenue for the thirteen weeks ended April 2, 2023 and April 3, 2022. Thirteen weeks ended April 2, 2023 April 3, 2022 Perishables $ 999,575 57.7 % $ 952,087 58.0 % Non-Perishables 733,735 42.3 % 689,074 42.0 % Net Sales $ 1,733,310 100.0 % $ 1,641,161 100.0 % The Company categorizes the varieties of products it sells as perishable and non-perishable. Perishable product categories include produce, meat and meat alternatives, seafood, deli, bakery, floral and dairy and dairy alternatives. Non-perishable product categories include grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Apr. 02, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | 13. Share-Based Compensation 2022 Incentive Plan In March 2022, the Company’s board of directors adopted the Sprouts Farmers Market, Inc. 2022 Omnibus Incentive Compensation Plan (the “2022 Incentive Plan”), which became effective May 25, 2022, upon approval by the Company’s stockholders. The 2022 Incentive Plan provides team members of the Company, certain consultants and advisors who perform services for the Company, and non-employee members of the Company's board of directors with the opportunity to receive grants of equity awards, including stock options, RSUs, PSAs, and other stock-based awards. The 2022 Incentive Plan replaced the 2013 Incentive Plan (as described below). Awards Granted under the 2022 Incentive Plan During the thirteen weeks ended April 2, 2023, the Company granted the following share-based compensation awards under the 2022 Incentive Plan: Grant Date RSUs PSAs Options March 14, 2023 491,729 172,059 221,085 Total 491,729 172,059 221,085 Weighted-average grant date fair value $ 32.95 $ 32.95 $ 12.63 Weighted-average exercise price $ — $ — $ 32.95 The aggregate number of shares of common stock that may be issued to team members and directors under the 2022 Incentive Plan may not exceed 6,600,000 , subject to the following adjustments. If any awards granted under the 2022 Incentive Plan, terminate, expire, or are cancelled, forfeited, exchanged, or surrendered without having been exercised, vested or paid in shares, the shares will again be available for purposes of the 2022 Incentive Plan. In addition, the number of shares subject to outstanding awards under the Sprouts Farmers Market, Inc. 2013 Incentive Plan (the “2013 Incentive Plan”) that terminate, expire, are paid in cash, or are cancelled, forfeited, exchanged, or surrendered without having been exercised, vested, or paid in shares under the 2013 Incentive Plan after the effective date of the 2022 Incentive Plan will be available for issuance under the 2022 Incentive Plan. As of April 2, 2023 , there were 971,034 stock awards outstanding and 5,749,809 shares remaining available for issuance under the 2022 Incentive Plan. 2013 Incentive Plan Prior to the adoption of the 2022 Incentive Plan, the 2013 Incentive Plan served as the umbrella plan for the Company’s share-based and cash-based incentive compensation programs for its directors, officers and other team members. Upon stockholder approval of the 2022 Incentive Plan on May 25, 2022, no further awards will be granted under the 2013 Incentive Plan, but awards outstanding under the 2013 Incentive Plan will remain outstanding in accordance with their terms and the terms of the 2013 Incentive Plan. Stock Options The Company uses the Black-Scholes option pricing model to estimate the fair value of options at grant date. Options vest in accordance with the terms set forth in the grant letter. Time-based options vest annually over a period of three years . RSUs The fair value of RSUs is based on the closing price of the Company’s common stock on the grant date. RSUs generally vest annually over a period of two or three years from the grant date. PSAs PSAs granted in 2019 were subject to the Company achieving certain EBIT performance targets for the 2021 fiscal year. The criteria was based on a range of performance targets in which grantees may earn 0 % to 200 % of the base number of awards granted. The performance conditions with respect to fiscal year 2021 EBIT were deemed to have been met, and the PSAs vested at the maximum pay out level on the third anniversary of the grant date (March 2022). There were no outstanding 2019 PSAs as of April 2, 2023. PSAs granted in 2020 were subject to the Company achieving certain earnings before taxes (“EBT”) performance targets for the 2022 fiscal year. The criteria was based on a range of performance targets in which grantees may earn 0 % to 200 % of the base number of awards granted. The performance conditions with respect to fiscal year 2022 EBT were deemed to have been met, and the PSAs vested at the maximum pay out level on the third anniversary of the grant date (March 2023). During the thirteen weeks ended April 2, 2023 , 268,699 of the 2020 PSAs vested. There were no outstanding 2020 PSAs as of April 2, 2023. PSAs granted in 2021 are subject to the Company achieving certain EBIT performance targets for the 2023 fiscal year. The criteria is based on a range of performance targets in which grantees may earn 0 % to 200 % of the base number of awards granted. If performance conditions are met, the applicable number of performance shares will vest on the third anniversary of the grant date (March 2024). PSAs granted in 2022 are subject to the Company achieving certain EBIT performance targets for the 2024 fiscal year. The criteria is based on a range of performance targets in which grantees may earn 0 % to 200 % of the base number of awards granted. If performance conditions are met, the applicable number of performance shares will vest on the third anniversary of the grant date (March 2025). PSAs granted in 2023 are subject to the Company achieving certain EBIT performance targets for the 2025 fiscal year. The criteria is based on a range of performance targets in which grantees may earn 0 % to 200 % of the base number of awards granted. If performance conditions are met, the applicable number of performance shares will vest on the third anniversary of the grant date (March 2026). Share-based Compensation Expense The Company presents share-based compensation expense in selling, general and administrative expenses on the Company’s consolidated statements of income. The amount recognized was as follows: Thirteen weeks ended April 2, 2023 April 3, 2022 Share-based compensation expense $ 3,852 $ 4,456 The following share-based awards were outstanding as of April 2, 2023 and April 3, 2022: As of April 2, 2023 April 3, 2022 (in thousands) Options Vested 740 376 Unvested 481 1,088 RSUs 1,156 1,083 PSAs 471 491 As of April 2, 2023, total unrecognized compensation expense and remaining weighted average recognition period related to outstanding share-based awards were as follows: Unrecognized Remaining Options $ 5,062 2.2 RSUs 28,583 1.8 PSAs 7,149 2.0 Total unrecognized compensation expense at April 2, 2023 $ 40,794 During the thirteen weeks ended April 2, 2023 and April 3, 2022 , the Company received $ 5.5 million and $ 2.6 million, respectively, in cash proceeds from the exercise of options. |
Store Closures
Store Closures | 3 Months Ended |
Apr. 02, 2023 | |
Store Closures [Abstract] | |
Store Closure | 15. Store Closures In February 2023, the Company's board of directors approved the closing of 11 stores during 2023. These stores, on average, are approximately 30 % larger than the Company's current prototype format and were underperforming financially. The closure of these stores resulted in a charge of $ 27.8 million during the thirteen weeks ended April 2, 2023 related to the impairment of leasehold improvements and right-of-use assets and is reflected in Store closure and other costs, net on the consolidated statements of income. The impairment charge represents the excess of the carrying value over the estimated fair value of each store's asset group. Accelerated depreciation on the closed stores' assets is expected to be approximately $ 6.0 million, of which $ 4.0 million was incurred during the thirteen weeks ended April 2, 2023 and is reflected in Depreciation and amortization on the consolidated statements of income. Severance expense was immaterial during the thirteen weeks ended April 2, 2023 , and no further severance expense is expected to be incurred. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 02, 2023 | |
Accounting Policies [Abstract] | |
Fiscal Years | The Company reports its results of operations on a 52- or 53-week fiscal calendar ending on the Sunday closest to December 31. The fiscal year ending December 31, 2023 (“fiscal year 2023”) and fiscal year 2022 are 52-week years. The Company reports its results of operations on a 13-week quarter, except for 53-week fiscal years (in which the fourth quarter has 14 weeks). |
Revenue Recognition | Revenue Recognition The Company’s performance obligations are satisfied upon the transfer of goods to the customer, which occurs at the point of sale, and payment from customers is also due at the time of sale. Proceeds from the sale of gift cards are recorded as a liability at the time of sale and recognized as sales when they are redeemed by the customer and the performance obligation is satisfied by the Company. The Company’s gift cards do not expire. Based on historical redemption rates, a small and relatively stable percentage of gift cards will never be redeemed, referred to as "breakage." Estimated breakage revenue is recognized over time in proportion to actual gift card redemptions and was not material in any period presented. A summary of the activity and balances in the gift card liability, net is as follows: Thirteen weeks ended April 2, 2023 April 3, 2022 Balance, beginning of year $ 10,906 $ 12,586 Gift cards issued during the period but not redeemed (1) 1,222 1,192 Revenue recognized from beginning liability ( 2,582 ) ( 3,276 ) Balance, end of year $ 9,546 $ 10,502 (1) net of estimated breakage The nature of goods the Company transfers to customers at the point of sale are inventories, consisting of merchandise purchased for resale. The Company does not have any material contract assets or receivables from contracts with customers, any revenue recognized in the current period from performance obligations satisfied in previous periods, any contract performance obligations, or any material costs to obtain or fulfill a contract as of April 2, 2023 . |
Restricted Cash | Restricted Cash Restricted cash relates to the Company's defined benefit plan forfeitures and the Company's healthcare, general liability and workers’ compensation plan benefits of approximately $ 1.9 million and $ 2.0 million as of April 2, 2023 and January 1, 2023 , respectively. These balances are included in prepaid expenses and other current assets in the consolidated balance sheets. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted No new accounting pronouncements issued or effective during the thirteen weeks ended April 2, 2023 had, or are expected to have, a material impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Apr. 02, 2023 | |
Schedule of Estimated Breakage Revenue Recognized | A summary of the activity and balances in the gift card liability, net is as follows: Thirteen weeks ended April 2, 2023 April 3, 2022 Balance, beginning of year $ 10,906 $ 12,586 Gift cards issued during the period but not redeemed (1) 1,222 1,192 Revenue recognized from beginning liability ( 2,582 ) ( 3,276 ) Balance, end of year $ 9,546 $ 10,502 (1) net of estimated breakage |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 02, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Liabilities Measured at Fair Value on Recurring Basis | The following tables present the fair value hierarchy for the Company’s financial liabilities measured at fair value on a recurring basis as of April 2, 2023 and January 1, 2023: April 2, 2023 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 225,000 $ — $ 225,000 Total financial liabilities $ — $ 225,000 $ — $ 225,000 January 1, 2023 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 250,000 $ — $ 250,000 Total financial liabilities $ — $ 250,000 $ — $ 250,000 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Lease Liabilities (Tables) | 3 Months Ended |
Apr. 02, 2023 | |
Long Term Debt And Finance Lease Liabilities [Abstract] | |
Summary of Long-Term Debt and Finance Lease Liabilities | A summary of long-term debt and finance lease liabilities is as follows: As of Facility Maturity Interest Rate April 2, 2023 January 1, 2023 Senior secured debt $ 700.0 million Credit Agreement March 25, 2027 Variable $ 225,000 $ 250,000 Finance lease liabilities Various n/a 8,720 8,902 Long-term debt and finance lease liabilities $ 233,720 $ 258,902 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Apr. 02, 2023 | |
Equity [Abstract] | |
Schedule of Common Stock Share Repurchase Programs Authorized by Board of Directors from Time to Time and Related Repurchase Activity and Available Authorized | The following table outlines the common stock share repurchase programs authorized by the Company’s board of directors and the related repurchase activity and available authorization as of April 2, 2023. Effective date Expiration date Amount Cost of Authorization March 2, 2022 December 31, 2023 $ 600,000 $ 286,472 $ 313,528 |
Schedule of Share Repurchase Activity Under Share Repurchase Programs | Share repurchase activity under the Company’s repurchase programs for the periods indicated was as follows (total cost in thousands): Thirteen weeks ended April 2, 2023 April 3, 2022 Number of common shares acquired 3,038,411 1,481,187 Average price per common share acquired $ 32.64 $ 30.86 Total cost of common shares acquired $ 99,171 $ 45,715 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Apr. 02, 2023 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Numerators and Denominators of Basic and Diluted Net Income Per Share | A reconciliation of the numerators and denominators of the basic and diluted net income per share calculations is as follows (in thousands, except per share amounts): Thirteen weeks ended April 2, 2023 April 3, 2022 Basic net income per share: Net income $ 76,160 $ 88,307 Weighted average shares outstanding 103,827 110,903 Basic net income per share $ 0.73 $ 0.80 Diluted net income per share: Net income $ 76,160 $ 88,307 Weighted average shares outstanding - 103,827 110,903 Dilutive effect of share-based awards: Assumed exercise of options to purchase shares 395 347 RSUs 481 470 PSAs 173 113 Weighted average shares and 104,876 111,833 Diluted net income per share $ 0.73 $ 0.79 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Apr. 02, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Losses of Derivative Instruments | The following table summarizes these losses classified on the consolidated statements of income: Thirteen weeks ended April 2, 2023 April 3, 2022 Consolidated Statements of Interest expense, net $ — $ 1,468 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 3 Months Ended |
Apr. 02, 2023 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in accumulated other comprehensive income (loss) for the thirteen weeks ended April 3, 2022. Cash Flow Balance at January 2, 2022 $ ( 3,758 ) Other comprehensive income (loss), net of tax Unrealized gains on cash flow hedging activities, net of income tax of $ 1,240 3,586 Reclassification of net losses on cash flow hedges to net income, net of income 377 ) ( 1,091 ) Total other comprehensive income (loss) 2,495 Balance at April 3, 2022 $ ( 1,263 ) |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Apr. 02, 2023 | |
Segment Reporting [Abstract] | |
Summary of Disaggregation of Revenue | In accordance with ASC 606, the following table represents a disaggregation of revenue for the thirteen weeks ended April 2, 2023 and April 3, 2022. Thirteen weeks ended April 2, 2023 April 3, 2022 Perishables $ 999,575 57.7 % $ 952,087 58.0 % Non-Perishables 733,735 42.3 % 689,074 42.0 % Net Sales $ 1,733,310 100.0 % $ 1,641,161 100.0 % |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Apr. 02, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of Share-Based Compensation Expense in Selling, General and Administrative Expenses | The Company presents share-based compensation expense in selling, general and administrative expenses on the Company’s consolidated statements of income. The amount recognized was as follows: Thirteen weeks ended April 2, 2023 April 3, 2022 Share-based compensation expense $ 3,852 $ 4,456 |
Summary of Outstanding Share-Based Awards | The following share-based awards were outstanding as of April 2, 2023 and April 3, 2022: As of April 2, 2023 April 3, 2022 (in thousands) Options Vested 740 376 Unvested 481 1,088 RSUs 1,156 1,083 PSAs 471 491 |
Summary of Total Unrecognized Compensation Expense and Remaining Weighted Average Recognition Period Related to Outstanding Share-Based Awards | As of April 2, 2023, total unrecognized compensation expense and remaining weighted average recognition period related to outstanding share-based awards were as follows: Unrecognized Remaining Options $ 5,062 2.2 RSUs 28,583 1.8 PSAs 7,149 2.0 Total unrecognized compensation expense at April 2, 2023 $ 40,794 |
Awards Granted under the 2022 Incentive Plan [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of Share-Based Compensation Awards Granted | During the thirteen weeks ended April 2, 2023, the Company granted the following share-based compensation awards under the 2022 Incentive Plan: Grant Date RSUs PSAs Options March 14, 2023 491,729 172,059 221,085 Total 491,729 172,059 221,085 Weighted-average grant date fair value $ 32.95 $ 32.95 $ 12.63 Weighted-average exercise price $ — $ — $ 32.95 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Apr. 02, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | A summary of the activity and balances in goodwill is as follows: Balance at January 1, 2023 Additions Balance at April 2, 2023 Goodwill $ 368,878 $ 12,873 $ 381,751 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 USD ($) State Store | Apr. 03, 2022 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Operating stores | Store | 395 | |
Number of states entity operates | State | 23 | |
Proceeds from revolving credit facilities | $ 0 | $ 62,500 |
Payments on revolving credit facilities | $ (25,000) | $ (62,500) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Estimated Breakage Revenue Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 02, 2023 | Apr. 03, 2022 | ||
Disaggregation Of Revenue [Line Items] | |||
Net gift card liability beginning balance | $ 10,906 | $ 12,586 | |
Gift cards issued during current period but not redeemed | [1] | 1,222 | 1,192 |
Revenue recognized from beginning liability | (2,582) | (3,276) | |
Net gift card liability ending balance | $ 9,546 | $ 10,502 | |
[1] net of estimated breakage |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | Apr. 02, 2023 | Jan. 01, 2023 | Oct. 02, 2022 |
ASU no. 2021-01 [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Change in accounting principle, ASU, adopted | true | ||
Prepaid Expenses and Other Current Assets [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Restricted cash related to defined benefit plan forfeitures and healthcare, general liability and workers’ compensation plan benefits | $ 1.9 | $ 2 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] - USD ($) $ in Thousands | Apr. 02, 2023 | Jan. 01, 2023 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 225,000 | $ 250,000 |
Total financial liabilities | 225,000 | 250,000 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Long-term debt | 225,000 | 250,000 |
Total financial liabilities | $ 225,000 | $ 250,000 |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Lease Liabilities - Summary of Long-Term Debt and Finance Lease Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Jan. 01, 2023 | |
Long Term Debt And Finance Lease Liabilities [Line Items] | ||
Finance lease liabilities | $ 8,720 | $ 8,902 |
Long-term debt and finance lease liabilities | 233,720 | 258,902 |
Senior Lien [Member] | Secured Debt [Member] | $700.0 million Credit Agreement [Member] | ||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||
Long-term debt | $ 225,000 | $ 250,000 |
Debt instrument maturity | Mar. 25, 2027 | |
Debt instrument, Interest Rate | Variable |
Long-Term Debt and Finance Le_4
Long-Term Debt and Finance Lease Liabilities - Summary of Long-Term Debt and Finance Lease Liabilities (Parenthetical) (Detail) $ in Millions | Apr. 02, 2023 USD ($) |
Senior Lien [Member] | Secured Debt [Member] | $700.0 million Credit Agreement [Member] | |
Long Term Debt And Finance Lease Liabilities [Line Items] | |
Debt instrument face amount | $ 700 |
Long-Term Debt and Finance Le_5
Long-Term Debt and Finance Lease Liabilities - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Apr. 28, 2023 | Apr. 02, 2023 | Apr. 03, 2022 | Jan. 01, 2023 | Jan. 01, 2023 | May 01, 2023 | Mar. 25, 2022 | Mar. 27, 2018 | |
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||||
Borrowings during the period | $ 0 | $ 62,500 | ||||||
Change in line of credit during period | $ 62,500 | |||||||
Credit Agreement [Member] | ||||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||||
Participation fee | 1% | |||||||
Issuance fee | 0.125% | |||||||
Credit facility termination date | Mar. 25, 2027 | |||||||
Borrowings during the period | $ 0 | 0 | ||||||
Principal payments on the Credit Facility | 25,000 | $ 0 | ||||||
Borrowings under credit facilities | $ 225,000 | $ 250,000 | $ 250,000 | |||||
Net leverage ratio | 375% | |||||||
Interest coverage ratio | 3% | |||||||
Credit Agreement [Member] | Subsequent Event [Member] | ||||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||||
Principal payments on the Credit Facility | $ 25,000 | |||||||
Borrowings under credit facilities | $ 200,000 | |||||||
Secured Debt [Member] | Credit Agreement [Member] | SOFR [Member] | ||||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||||
Interest rate spread on base rate | 0.10% | |||||||
Secured Debt [Member] | Current Credit Facility Agreement [Member] | SOFR [Member] | ||||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||||
Interest rate spread on base rate | 1% | |||||||
Senior Lien [Member] | Secured Debt [Member] | Credit Agreement [Member] | ||||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||||
Debt instrument face amount | $ 70,000 | |||||||
Letters of credit issued | $ 21,600 | |||||||
Interest rate spread on base rate | 0.05% | |||||||
Credit facility commitment fee percentage subject to upward or downward adjustments | 0.01% | |||||||
Senior Lien [Member] | Secured Debt [Member] | Credit Agreement [Member] | SOFR [Member] | ||||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||||
Line of credit interest rate terms | at the Company's option, either at the Term SOFR (with a floor of 0.00%) plus a 0.10% SOFR adjustment and 1.00% per annum or base rate (with a floor of 0.00%) plus 0.00% per annum. | |||||||
Senior Lien [Member] | Secured Debt [Member] | Credit Agreement [Member] | Prime Plus [Member] | ||||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||||
Interest rate spread on base rate | 0% | |||||||
Senior Lien [Member] | Secured Debt [Member] | Credit Agreement [Member] | Minimum [Member] | ||||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||||
Credit facility unused commitment fee percentage | 0.10% | |||||||
Senior Lien [Member] | Secured Debt [Member] | Credit Agreement [Member] | Maximum [Member] | ||||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||||
Credit facility unused commitment fee percentage | 0.225% | |||||||
Senior Lien [Member] | Secured Debt [Member] | Credit Agreement [Member] | Swingline Loan Sub-facility [Member] | ||||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||||
Debt instrument face amount | $ 50,000 | |||||||
Senior Lien [Member] | Secured Debt [Member] | Current Credit Facility Agreement [Member] | SOFR [Member] | ||||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||||
Interest rate spread on base rate | 0.10% | |||||||
Senior Lien [Member] | Secured Debt [Member] | Current Credit Facility Agreement [Member] | Secured Overnight Financing Rate [Member] | ||||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||||
Interest rate spread on base rate | 1% | |||||||
Senior Lien [Member] | Secured Debt [Member] | Former Credit Facility [Member] | ||||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||||
Capitalized debt issuance costs | $ 500 | |||||||
Senior Lien [Member] | Secured Debt [Member] | $700.0 million Credit Facility [Member] | ||||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||||
Debt instrument face amount | $ 700,000 | |||||||
Senior Lien [Member] | Secured Debt [Member] | $700.0 million Credit Facility [Member] | Credit Agreement [Member] | ||||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 700,000 | |||||||
Capitalized debt issuance costs | $ 3,400 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 23.30% | 24.30% |
Excess tax benefits of equity-based compensation | $ 2.6 | $ 1.5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Apr. 13, 2010 Defendant |
Superior Court of State of California and County of Los Angeles [Member] | |
Other Commitments [Line Items] | |
Number of defendants | 80 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
May 01, 2023 | Apr. 02, 2023 | Mar. 02, 2022 | |
Equity Class Of Treasury Stock [Line Items] | |||
Common stock repurchased during the period, value | $ 16,000 | ||
Excise tax | 1% | ||
Subsequent Event [Member] | |||
Equity Class Of Treasury Stock [Line Items] | |||
Common stock repurchased during the period, shares | 0.5 | ||
March 3, 2021 Share Repurchase Program [Member] | |||
Equity Class Of Treasury Stock [Line Items] | |||
Shares authorized to be repurchased | $ 300,000 | ||
Authorization available | $ 99,800 | ||
March 2, 2022 [Member] | |||
Equity Class Of Treasury Stock [Line Items] | |||
Shares authorized to be repurchased | 600,000 | ||
Authorization available | $ 313,528 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Common Stock Share Repurchase Programs Authorized by Board of Directors from Time to Time and Related Repurchase Activity and Available Authorized (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 02, 2023 | Apr. 03, 2022 | Mar. 02, 2022 | |
Equity Class Of Treasury Stock [Line Items] | |||
Cost of repurchases | $ 98,349 | $ 45,715 | |
March 3, 2021 [Member] | |||
Equity Class Of Treasury Stock [Line Items] | |||
Amount authorized | $ 300,000 | ||
Authorization available | $ 99,800 | ||
March 2, 2022 [Member] | |||
Equity Class Of Treasury Stock [Line Items] | |||
Effective date | Mar. 02, 2022 | ||
Expiration date | Dec. 31, 2023 | ||
Amount authorized | $ 600,000 | ||
Cost of repurchases | 286,472 | ||
Authorization available | $ 313,528 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Share Repurchase Activity under Share Repurchase Programs (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Equity [Abstract] | ||
Number of common shares acquired | 3,038,411 | 1,481,187 |
Average price per common share acquired | $ 32.64 | $ 30.86 |
Total cost of common shares acquired | $ 99,171 | $ 45,715 |
Net Income Per Share - Summary
Net Income Per Share - Summary of Reconciliation of Numerators and Denominators of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Basic net income per share: | ||
Basic net income per share | $ 0.73 | $ 0.80 |
Diluted net income per share: | ||
Net income | $ 76,160 | $ 88,307 |
Weighted average shares outstanding - basic | 103,827 | 110,903 |
Dilutive effect of share-based awards: | ||
Assumed exercise of options to purchase shares | 395 | 347 |
Weighted average shares and equivalent shares outstanding | 104,876 | 111,833 |
Diluted net income per share | $ 0.73 | $ 0.79 |
RSUs [Member] | ||
Dilutive effect of share-based awards: | ||
Dilutive effect | 481 | 470 |
PSAs [Member] | ||
Dilutive effect of share-based awards: | ||
Dilutive effect | 173 | 113 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Stock option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 0.4 | 0.2 |
RSUs [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 0.4 | 0.5 |
PSAs [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 0.5 | 0.5 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - Forward Contract [Member] $ in Millions | 1 Months Ended | ||
Dec. 31, 2017 USD ($) Hedge | Apr. 02, 2023 Swap | Jan. 01, 2023 Swap | |
Derivative [Line Items] | |||
Derivative, number of cash flow hedges | Hedge | 5 | ||
Number of outstanding swaps | Swap | 0 | 0 | |
Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, notional amount of outstanding swaps | $ | $ 250 | ||
Derivative, cash flow swaps length period | 1 year | ||
Cash flow swaps mature annually, starting year | 2018 | ||
Cash flow swaps mature annually, ending year | 2022 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Fair Value of Derivative Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Derivatives Fair Value [Line Items] | ||
Interest expense, net | $ 1,468 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Losses of Derivative Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Derivative Instruments Gain Loss [Line Items] | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Income (Expense), Net | Interest Income (Expense), Net |
Interest expense, net | $ 1,468 |
Comprehensive Income - Changes
Comprehensive Income - Changes In Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | $ 1,046,462 | $ 959,876 |
Other comprehensive income (loss), net of tax | ||
Unrealized gains on cash flow hedging activities, net of income tax of $1,240 | 0 | 3,586 |
Reclassification of net gains (losses) on cash flow hedges to net income, net of income tax of ($377) | 0 | (1,091) |
Total other comprehensive income (loss) | 0 | 2,495 |
Ending Balance | $ 1,050,930 | 1,011,974 |
Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (3,758) | |
Other comprehensive income (loss), net of tax | ||
Unrealized gains on cash flow hedging activities, net of income tax of $1,240 | 3,586 | |
Reclassification of net gains (losses) on cash flow hedges to net income, net of income tax of ($377) | 1,091 | |
Total other comprehensive income (loss) | 2,495 | |
Ending Balance | $ (1,263) |
Comprehensive Income - Change_2
Comprehensive Income - Changes In Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Details) $ in Thousands | 3 Months Ended |
Apr. 03, 2022 USD ($) | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Income tax expenses (Benefit) on cash flow hedging activities | $ 1,240 |
Income tax expenses (Benefit) for reclassification of net gains (losses) on cash flow hedges | (377) |
Cash Flow Hedges [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Income tax expenses (Benefit) on cash flow hedging activities | 1,240 |
Income tax expenses (Benefit) for reclassification of net gains (losses) on cash flow hedges | $ (377) |
Segments - Additional Informati
Segments - Additional Information (Detail) | 3 Months Ended |
Apr. 02, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 1 |
Number of operating segment | 1 |
Segments - Summary of Disaggreg
Segments - Summary of Disaggregation of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Disaggregation Of Revenue [Line Items] | ||
Net Sales, amount | $ 1,733,310 | $ 1,641,161 |
Sales Revenue, Goods, Net [Member] | Product Concentration Risk [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net Sales, percentage | 100% | 100% |
Perishables [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net Sales, amount | $ 999,575 | $ 952,087 |
Perishables [Member] | Sales Revenue, Goods, Net [Member] | Product Concentration Risk [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net Sales, percentage | 57.70% | 58% |
Non-Perishables [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net Sales, amount | $ 733,735 | $ 689,074 |
Non-Perishables [Member] | Sales Revenue, Goods, Net [Member] | Product Concentration Risk [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net Sales, percentage | 42.30% | 42% |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock-Based Compensation Awards Granted (Detail) - Awards Granted under the 2022 Incentive Plan [Member] | 3 Months Ended |
Apr. 02, 2023 $ / shares shares | |
RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock | shares | 491,729 |
Weighted-average grant date fair value | $ / shares | $ 32.95 |
Weighted-average exercise price | $ / shares | $ 0 |
PSAs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock | shares | 172,059 |
Weighted-average grant date fair value | $ / shares | $ 32.95 |
Weighted-average exercise price | $ / shares | $ 0 |
Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock | shares | 221,085 |
Weighted-average grant date fair value | $ / shares | $ 12.63 |
Weighted-average exercise price | $ / shares | $ 32.95 |
March 14, 2023 Member | RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock | shares | 491,729 |
March 14, 2023 Member | PSAs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock | shares | 172,059 |
March 14, 2023 Member | Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock | shares | 221,085 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Proceeds from exercise of stock options | $ 5,488 | $ 2,555 |
Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Proceeds from exercise of stock options | $ 5,500 | $ 2,600 |
RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares, outstanding | 1,156,000 | 1,083,000 |
RSUs [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 2 years | |
RSUs [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
PSAs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares, outstanding | 471,000 | 491,000 |
PSAs [Member] | 2019 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number Of Share Outstanding | 0 | |
Performance stock awards description | The criteria was based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. | |
PSAs [Member] | 2020 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number Of Share Outstanding | 0 | |
Performance stock awards description | The criteria was based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. | |
Awards vested | 268,699 | |
PSAs [Member] | 2021 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock awards description | The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. | |
PSAs [Member] | 2022 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock awards description | The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. | |
PSAs [Member] | 2023 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock awards description | The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. | |
PSAs [Member] | Minimum [Member] | 2019 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock awards payout percentage of shares granted | 0% | |
PSAs [Member] | Minimum [Member] | 2020 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock awards payout percentage of shares granted | 0% | |
PSAs [Member] | Minimum [Member] | 2021 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock awards payout percentage of shares granted | 0% | |
PSAs [Member] | Minimum [Member] | 2022 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock awards payout percentage of shares granted | 0% | |
PSAs [Member] | Minimum [Member] | 2023 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock awards payout percentage of shares granted | 0% | |
PSAs [Member] | Maximum [Member] | 2019 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock awards payout percentage of shares granted | 200% | |
PSAs [Member] | Maximum [Member] | 2020 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock awards payout percentage of shares granted | 200% | |
PSAs [Member] | Maximum [Member] | 2021 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock awards payout percentage of shares granted | 200% | |
PSAs [Member] | Maximum [Member] | 2022 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock awards payout percentage of shares granted | 200% | |
PSAs [Member] | Maximum [Member] | 2023 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock awards payout percentage of shares granted | 200% | |
Third Anniversary [Member] | Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Awards Granted under the 2022 Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance under plan | 6,600,000 | |
Number Of Share Outstanding | 971,034 | |
Remaining shares available for issuance | 5,749,809 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Share-Based Compensation Expense in Selling, General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Share-based compensation expense | $ 3,852 | $ 4,456 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Outstanding Share-Based Awards (Detail) - shares shares in Thousands | Apr. 02, 2023 | Apr. 03, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested options, outstanding | 740 | 376 |
Unvested options, outstanding | 481 | 1,088 |
RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based awards other than options, outstanding | 1,156 | 1,083 |
PSAs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based awards other than options, outstanding | 471 | 491 |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Total Unrecognized Compensation Expense and Remaining Weighted Average Recognition Period Related to Outstanding Share-Based Awards (Detail) $ in Thousands | 3 Months Ended |
Apr. 02, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation expense at April 2, 2023 | $ 40,794 |
Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation expense at April 2, 2023 | $ 5,062 |
Remaining weighted average recognition period | 2 years 2 months 12 days |
RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation expense at April 2, 2023 | $ 28,583 |
Remaining weighted average recognition period | 1 year 9 months 18 days |
PSAs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation expense at April 2, 2023 | $ 7,149 |
Remaining weighted average recognition period | 2 years |
Goodwill (Additional Informatio
Goodwill (Additional Information) (Details) - USD ($) $ in Thousands | Apr. 02, 2023 | Jan. 01, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 381,751 | $ 368,878 |
Goodwill, Impaired, Accumulated Impairment Loss | $ 0 | $ 0 |
Goodwill - summary of the activ
Goodwill - summary of the activity and balances in goodwill (Details) $ in Thousands | 3 Months Ended |
Apr. 02, 2023 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Beginning Balance | $ 368,878 |
Additions | 12,873 |
Goodwill, Ending Balance | $ 381,751 |
Business Combination (Additiona
Business Combination (Additional Information) (Details) - USD ($) $ in Thousands, shares in Millions | Mar. 20, 2023 | Apr. 02, 2023 | Jan. 01, 2023 |
Business Acquisition [Line Items] | |||
Goodwill | $ 381,751 | $ 368,878 | |
Ronald Cohn, Inc. | |||
Business Acquisition [Line Items] | |||
Date of Acquisition | Mar. 20, 2023 | ||
Business combination, Common shares, Value | $ 18,100 | ||
Business Acquisition, Name of Acquired Entity | Ronald Cohn, Inc | ||
Cash consideration | $ 13,000 | ||
Goodwill | 12,900 | ||
Reacquired right of intangible asset | 23,100 | ||
AllocationToNetTangibleAssets | $ (4,900) | ||
Ronald Cohn, Inc. | Common Stock [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition, Common shares, Aggregate consideration paid | 0.6 |
Store Closures (Additional Info
Store Closures (Additional Information) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended |
Feb. 28, 2023 Store | Apr. 02, 2023 USD ($) | |
Store Closures [Line Items] | ||
Number of Closing Stores | Store | 11 | |
Store performance capacity rate | 30% | |
Store closing charges | $ 27,800 | |
Depreciation and amortization | 4,000 | |
Accelerated depreciation | 6,000 | |
Severance expense | $ 0 |