Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Aug. 04, 2018 | Sep. 05, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Ollie's Bargain Outlet Holdings, Inc. | |
Entity Central Index Key | 1,639,300 | |
Current Fiscal Year End Date | --02-03 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 62,698,476 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Aug. 4, 2018 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Consolidated Statements of Income (Unaudited) [Abstract] | ||||
Net sales | $ 288,098 | $ 254,645 | $ 563,837 | $ 482,247 |
Cost of sales | 175,474 | 154,419 | 338,337 | 289,086 |
Gross profit | 112,624 | 100,226 | 225,500 | 193,161 |
Selling, general and administrative expenses | 72,990 | 65,778 | 145,354 | 127,509 |
Depreciation and amortization expenses | 2,854 | 2,375 | 5,617 | 4,647 |
Pre-opening expenses | 1,917 | 2,255 | 3,681 | 3,853 |
Operating income | 34,863 | 29,818 | 70,848 | 57,152 |
Interest expense, net | 278 | 1,124 | 816 | 2,458 |
Loss on extinguishment of debt | 0 | 0 | 100 | 397 |
Income before income taxes | 34,585 | 28,694 | 69,932 | 54,297 |
Income tax expense | 4,737 | 8,982 | 9,630 | 15,619 |
Net income | $ 29,848 | $ 19,712 | $ 60,302 | $ 38,678 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.48 | $ 0.32 | $ 0.97 | $ 0.63 |
Diluted (in dollars per share) | $ 0.45 | $ 0.30 | $ 0.92 | $ 0.60 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 62,444 | 61,194 | 62,306 | 61,037 |
Diluted (in shares) | 65,868 | 64,889 | 65,745 | 64,640 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Aug. 04, 2018 | Feb. 03, 2018 | Jul. 29, 2017 |
Current assets: | |||
Cash and cash equivalents | $ 29,415 | $ 39,234 | $ 24,820 |
Inventories | 287,440 | 255,185 | 253,008 |
Accounts receivable | 1,602 | 1,271 | 766 |
Prepaid expenses and other assets | 9,918 | 7,986 | 4,193 |
Total current assets | 328,375 | 303,676 | 282,787 |
Property and equipment, net of accumulated depreciation of $56,579, $43,942 and $50,076, respectively | 57,991 | 54,888 | 49,975 |
Goodwill | 444,850 | 444,850 | 444,850 |
Trade name and other intangible assets, net of accumulated amortization of $1,992, $1,658 and $1,825, respectively | 232,472 | 232,639 | 232,806 |
Other assets | 4,081 | 2,146 | 2,319 |
Total assets | 1,067,769 | 1,038,199 | 1,012,737 |
Current liabilities: | |||
Current portion of long-term debt | 10,178 | 10,158 | 8,887 |
Accounts payable | 69,015 | 74,206 | 53,276 |
Income taxes payable | 0 | 6,035 | 1,936 |
Accrued expenses and other | 51,762 | 46,327 | 37,040 |
Total current liabilities | 130,955 | 136,726 | 101,139 |
Revolving credit facility | 0 | 0 | 0 |
Long-term debt | 11,516 | 38,835 | 119,552 |
Deferred income taxes | 57,184 | 59,073 | 87,600 |
Other long-term liabilities | 7,961 | 7,103 | 6,675 |
Total liabilities | 207,616 | 241,737 | 314,966 |
Stockholders' equity: | |||
Preferred stock - 50,000 shares authorized at $0.001 par value; no shares issued | 0 | 0 | 0 |
Common stock - 500,000 shares authorized at $0.001 par value; 62,611, 61,295 and 62,007 shares issued, respectively | 63 | 62 | 61 |
Additional paid-in capital | 592,446 | 583,467 | 573,693 |
Retained earnings | 267,730 | 213,019 | 124,103 |
Treasury - common stock, at cost; 9 shares | (86) | (86) | (86) |
Total stockholders' equity | 860,153 | 796,462 | 697,771 |
Total liabilities and stockholders' equity | $ 1,067,769 | $ 1,038,199 | $ 1,012,737 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Aug. 04, 2018 | Feb. 03, 2018 | Jul. 29, 2017 |
Assets | |||
Property and equipment, accumulated depreciation | $ 56,579 | $ 50,076 | $ 43,942 |
Trade name and other intangible assets, accumulated amortization | $ 1,992 | $ 1,825 | $ 1,658 |
Stockholders' equity: | |||
Preferred stock, shares authorized (in shares) | 50,000 | 50,000 | 50,000 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred stock, shares issued (in shares) | 0 | 0 | 0 |
Common stock, shares authorized (in shares) | 500,000 | 500,000 | 500,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares issued (in shares) | 62,611 | 62,007 | 61,295 |
Treasury - common stock (in shares) | 9 | 9 | 9 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance at Jan. 28, 2017 | $ 61 | $ (86) | $ 565,861 | $ 85,425 | $ 651,261 |
Beginning balance (in shares) at Jan. 28, 2017 | 60,756 | (9) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | $ 0 | $ 0 | 4,039 | 0 | 4,039 |
Proceeds from stock options exercised | $ 0 | $ 0 | 4,012 | 0 | 4,012 |
Proceeds from stock options exercised (in shares) | 519 | 0 | |||
Vesting of restricted stock | $ 0 | $ 0 | 0 | 0 | 0 |
Vesting of restricted stock (in shares) | 27 | 0 | |||
Common shares withheld for taxes | $ 0 | $ 0 | (219) | 0 | (219) |
Common shares withheld for taxes (in shares) | (7) | 0 | |||
Net income | $ 0 | $ 0 | 0 | 38,678 | 38,678 |
Ending balance at Jul. 29, 2017 | $ 61 | $ (86) | 573,693 | 124,103 | 697,771 |
Ending balance (in shares) at Jul. 29, 2017 | 61,295 | (9) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of adopting ASU 2014-09 (Note 2) | ASU 2014-09 [Member] | $ 0 | $ 0 | 0 | (5,591) | (5,591) |
Beginning balance at Feb. 03, 2018 | $ 62 | $ (86) | 583,467 | 213,019 | 796,462 |
Beginning balance (in shares) at Feb. 03, 2018 | 62,007 | (9) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | $ 0 | $ 0 | 3,510 | 0 | 3,510 |
Proceeds from stock options exercised | $ 1 | $ 0 | 6,171 | 0 | 6,172 |
Proceeds from stock options exercised (in shares) | 564 | 0 | |||
Vesting of restricted stock | $ 0 | $ 0 | 0 | 0 | 0 |
Vesting of restricted stock (in shares) | 52 | 0 | |||
Common shares withheld for taxes | $ 0 | $ 0 | (702) | 0 | (702) |
Common shares withheld for taxes (in shares) | (12) | 0 | |||
Net income | $ 0 | $ 0 | 0 | 60,302 | 60,302 |
Ending balance at Aug. 04, 2018 | $ 63 | $ (86) | $ 592,446 | $ 267,730 | $ 860,153 |
Ending balance (in shares) at Aug. 04, 2018 | 62,611 | (9) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 04, 2018 | Jul. 29, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 60,302 | $ 38,678 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of property and equipment | 6,723 | 5,667 |
Amortization of debt issuance costs | 248 | 339 |
Amortization of original issue discount | 3 | 9 |
Loss on extinguishment of debt | 100 | 397 |
(Gain) loss on disposal of assets | (24) | 26 |
Amortization of intangibles | 167 | 171 |
Deferred income tax provision (benefit) | 33 | (1,624) |
Deferred rent expense | 994 | 1,088 |
Stock-based compensation expense | 3,510 | 4,039 |
Changes in operating assets and liabilities: | ||
Inventories | (32,255) | (42,901) |
Accounts receivable | (331) | (465) |
Prepaid expenses and other assets | (4,075) | (596) |
Accounts payable | (4,776) | 2,372 |
Income taxes payable | (6,035) | (2,612) |
Accrued expenses and other liabilities | (2,055) | (7,272) |
Net cash provided by (used in) operating activities | 22,529 | (2,684) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (10,241) | (8,667) |
Proceeds from sale of property and equipment | 43 | 17 |
Net cash used in investing activities | (10,198) | (8,650) |
Cash flows from financing activities: | ||
Borrowings on revolving credit facility | 599,162 | 511,264 |
Repayments on revolving credit facility | (599,162) | (511,264) |
Repayments on term loan and capital leases | (27,620) | (66,322) |
Proceeds from stock option exercises | 6,172 | 4,012 |
Common shares withheld for taxes | (702) | (219) |
Net cash used in financing activities | (22,150) | (62,529) |
Net decrease in cash and cash equivalents | (9,819) | (73,863) |
Cash and cash equivalents at the beginning of the period | 39,234 | 98,683 |
Cash and cash equivalents at the end of the period | 29,415 | 24,820 |
Cash paid during the period for: | ||
Interest | 581 | 2,112 |
Income taxes | 16,284 | 19,857 |
Non-cash investing activities: | ||
Accrued purchases of property and equipment | $ 1,352 | $ 1,470 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 6 Months Ended |
Aug. 04, 2018 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | (1) Organization and Summary of Significant Accounting Policies (a) Description of Business Ollie’s Bargain Outlet Holdings, Inc. and subsidiaries (collectively referenced to as the “Company” or “Ollie’s”) principally buys overproduced, overstocked, and closeout merchandise from manufacturers, wholesalers and other retailers. In addition, the Company augments its name-brand closeout deals with directly sourced private label products featuring names exclusive to Ollie’s in order to provide consistently value-priced goods in select key merchandise categories. Since its first store opened in 1982, the Company has grown to 282 retail locations in 22 states as of August 4, 2018. Ollie’s Bargain Outlet retail locations are located in Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Indiana, Kentucky, Louisiana, Maryland, Michigan, Mississippi, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia and West Virginia. (b) Fiscal Year Ollie’s follows a 52/53-week fiscal year, which ends on the Saturday nearer to January 31 of the following year. References to the thirteen weeks ended August 4, 2018 and July 29, 2017 refer to the thirteen weeks from May 6, 2018 to August 4, 2018 and from April 30, 2017 to July 29, 2017, respectively. References to year-to-date periods ending August 4, 2018 and July 29, 2017 refer to the twenty-six weeks from February 4, 2018 to August 4, 2018 and January 29, 2017 to July 29, 2017, respectively. References to “2017” refer to the fiscal year ended February 3, 2018, which consisted of a 53-week period. References to “2018” refer to the fiscal year ending February 2, 2019, which consists of a 52-week period. (c) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly the Company’s results of operations, financial condition, and cash flows for all periods presented. The condensed consolidated balance sheets as of August 4, 2018 and July 29, 2017, the condensed consolidated statements of income for the thirteen and twenty-six weeks ended August 4, 2018 and July 29, 2017, respectively, and the condensed consolidated statements of stockholders’ equity and cash flows for the twenty-six weeks ended August 4, 2018 and July 29, 2017 have been prepared by the Company and are unaudited. The Company’s business is seasonal in nature and results of operations for the interim periods presented are not necessarily indicative of operating results for 2018 or any other period. All intercompany accounts, transactions, and balances have been eliminated in consolidation. The Company’s balance sheet as of February 3, 2018, presented herein, has been derived from the audited balance sheet included in the Company’s Annual Report on Form 10-K filed with the SEC on April 4, 2018 (“Annual Report”), but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the financial statements for 2017 and footnotes thereto included in the Annual Report. For purposes of the disclosure requirements for segments of a business enterprise, it has been determined that the Company is comprised of one operating segment. (d) Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (e) Fair Value Disclosures Fair value is defined as the price which the Company would receive to sell an asset or pay to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. In determining fair value, GAAP establishes a three‑level hierarchy used in measuring fair value, as follows: · Level 1 inputs are quoted prices available for identical assets and liabilities in active markets. · Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets or other inputs which are observable or can be corroborated by observable market data. · Level 3 inputs are less observable and reflect the Company’s assumptions. The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, its revolving credit facility and its term loan facility. The carrying amount of cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of their short maturities. The carrying amount of the revolving credit facility and term loan facility approximates its fair value because the interest rates are adjusted regularly based on current market conditions. (f) Recently Issued Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases |
Net Sales
Net Sales | 6 Months Ended |
Aug. 04, 2018 | |
Net Sales [Abstract] | |
Net Sales | (2) Net Sales Ollie’s recognizes retail sales in its stores when merchandise is sold and the customer takes possession of merchandise. Also included in net sales is revenue allocated to certain redeemed discounts earned via the Ollie’s Army loyalty program and gift card breakage. Net sales are presented net of returns and sales tax. The Company provides an allowance for estimated retail merchandise returns based on prior experience. Adoption of ASU 2014-09, Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new standard supersedes U.S. GAAP guidance on revenue recognition and requires the use of more estimates and judgments than prior guidance. The Company adopted ASU 2014-09 as of February 4, 2018 using the modified retrospective transition method. Results for reporting periods beginning after February 4, 2018 are presented pursuant to the requirements of the new standard, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under prior guidance. The Company recorded a net reduction to the opening balance of retained earnings of $5.6 million as of February 4, 2018 due to the cumulative impact of adopting ASU 2014-09, with the impact primarily related to the changes in revenue recognition associated with the Company’s customer loyalty program and gift card breakage. The cumulative effect of changes to the Company’s consolidated February 4, 2018 balance sheet for the adoption of ASU 2014-09 was as follows (in thousands): Balance at February 3, 2018 Adjustments Due to ASU 2014-09 Balance at February 4, 2018 Assets Inventories $ 255,185 $ 339 $ 255,524 Liabilities Accrued expenses and other 46,327 7,853 54,180 Deferred income taxes 59,073 (1,923 ) 57,150 Equity Retained earnings 213,019 (5,591 ) 207,428 The Company determined the adoption of ASU 2014-09 changed the presentation for the following: · Revenue is deferred for the Ollie’s Army loyalty program where members accumulate points that can be redeemed for discounts on future purchases Balance at February 3, 2018 $ 8,321 Revenue deferred 5,861 Revenue recognized (5,553 ) Balance at August 4, 2018 $ 8,629 · Gift card breakage for gift card liabilities not subject to escheatment is recognized as revenue in proportion to the redemption of gift cards rather than when redemption of the gift card was considered remote. Ollie’s gift cards do not expire. The rate applied to redemptions is based upon a historical breakage rate. Gift cards are combined in one homogenous pool and are not separately identifiable. Therefore, the revenue recognized consisted of gift cards that were included in the liability at the beginning of the period as well as gift cards that were issued during the period. The following table is a reconciliation of the gift card liability (in thousands): Balance at February 3, 2018 $ 1,223 Gift card issuances 1,966 Gift card redemption and breakage (2,009 ) Balance at August 4, 2018 $ 1,180 · Sales return allowance is recorded on a gross basis on the condensed consolidated balance sheet as a refund liability and an asset for recovery rather than as a net liability. The adoption of ASU 2014-09 did not have a material impact on the Company’s condensed consolidated income statement and statement of cash flows for the thirteen and twenty-six weeks ended August 4, 2018. As a result of the adoption of ASU 2014-09, the Company’s balance sheet at August 4, 2018 reflected an additional liability of $8.6 million related to the Ollie’s Army loyalty program which would not have been recorded prior to adoption. Other changes to the condensed consolidated balance sheet at August 4, 2018 were not significant. |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Aug. 04, 2018 | |
Earnings per Common Share [Abstract] | |
Earnings per Common Share | (3) Earnings per Common Share Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding after giving effect to the potential dilution, if applicable, from the assumed exercise of stock options into shares of common stock as if those stock options were exercised and the assumed lapse of restrictions on restricted stock units. The following table summarizes those effects for the diluted earnings per common share calculation (in thousands, except per share amounts): Thirteen weeks ended Twenty-six weeks ended August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 Net income $ 29,848 $ 19,712 $ 60,302 $ 38,678 Weighted average number of common shares outstanding – Basic 62,444 61,194 62,306 61,037 Dilutive impact of stock options and restricted stock units 3,424 3,695 3,439 3,603 Weighted average number of common shares outstanding - Diluted 65,868 64,889 65,745 64,640 Earnings per common share – Basic $ 0.48 $ 0.32 $ 0.97 $ 0.63 Earnings per common share - Diluted $ 0.45 $ 0.30 $ 0.92 $ 0.60 The effect of the weighted average assumed exercise of stock options outstanding totaling 266,285 and 345,326 for the thirteen weeks ended August 4, 2018 and July 29, 2017, respectively, and 195,512 and 249,609 for the twenty-six weeks ended August 4, 2018 and July 29, 2017, respectively, were excluded from the calculation of diluted weighted average common shares outstanding because the effect would have been antidilutive. The effect of weighted average non-vested restricted stock units outstanding totaling 345 and 88 for the thirteen weeks ended August 4, 2018 and July 29, 2017, respectively, and 13,339 and 20,093 for the twenty-six weeks ended August 4, 2018 and July 29, 2017, respectively, were excluded from the calculation of diluted weighted average common shares outstanding because the effect would have been antidilutive. |
Accrued Expenses and Other
Accrued Expenses and Other | 6 Months Ended |
Aug. 04, 2018 | |
Accrued Expenses and Other [Abstract] | |
Accrued Expenses and Other | (4) Accrued Expenses and Other Accrued expenses and other consists of the following (in thousands): August 4, 2018 July 29, 2017 February 3, 2018 Compensation and benefits $ 11,557 $ 8,630 $ 14,181 Deferred revenue 8,629 - - Insurance 5,198 3,370 2,768 Freight 4,113 5,184 3,836 Real estate related 3,888 3,623 4,019 Sales and use taxes 3,815 2,990 3,865 Advertising 1,968 1,966 5,523 Other 12,594 11,277 12,135 $ 51,762 $ 37,040 $ 46,327 |
Debt Obligations and Financing
Debt Obligations and Financing Arrangements | 6 Months Ended |
Aug. 04, 2018 | |
Debt Obligations and Financing Arrangements [Abstract] | |
Debt Obligations and Financing Arrangements | (5) Debt Obligations and Financing Arrangements Long-term debt consists of the following (in thousands): August 4, 2018 July 29, 2017 February 3, 2018 Term loan, net $ 21,173 $ 128,027 $ 48,530 Capital leases 521 412 463 Total debt 21,694 128,439 48,993 Less: current portion (10,178 ) (8,887 ) (10,158 ) Long-term debt $ 11,516 $ 119,552 $ 38,835 On January 29, 2016, the Company refinanced its existing senior secured credit facility with the proceeds of its new Credit Facilities (as defined below). The new credit facilities consist of a $200.0 million term loan (“Term Loan Facility”) and a $100.0 million revolving credit facility (“Revolving Credit Facility”, and together with the Term Loan Facility, the “Credit Facilities”), which includes a $25.0 million sub-facility for letters of credit and a $25.0 million sub-facility for swingline loans. The interest rates for the Credit Facilities are not subject to a floor and are calculated as the higher of the Prime Rate, the Federal Funds Effective Rate plus 0.50% or the Eurodollar Rate plus 1.0%, plus the Applicable Margin, or, for Eurodollar Loans, the Eurodollar Rate plus the Applicable Margin. The Applicable Margin will vary from 0.75% to 1.25% for a Base Rate Loan and 1.75% to 2.25% for a Eurodollar Loan, based on reference to the total leverage ratio. The Credit Facilities mature on January 29, 2021. As of August 4, 2018, the Term Loan Facility is subject to amortization with principal payable in quarterly installments of $2.5 million to be made on the last business day of each fiscal quarter prior to maturity. The remaining initial aggregate advances under the Term Loan Facility are payable at maturity. The Company made voluntary prepayments under the Term Loan Facility totaling $25.0 million and $65.0 million during the twenty-six weeks ended August 4, 2018 and July 29, 2017, respectively. In connection with these prepayments, $0.1 million and $0.3 million of debt issuance cost and $7,000 and $0.1 million of original issue discount were accelerated and included in loss on extinguishment of debt for the twenty-six weeks ended August 4, 2018 and July 29, 2017, respectively. In accordance with the terms of the Term Loan Facility, prepayments were applied against the remaining scheduled installment payments of principal due under the Term Loan Facility in direct order of maturity. As a result, the Company is no longer obligated to make the scheduled installment payments of principal; however, the Company currently intends to continue to make these payments and therefore has classified such payments as current portion of long-term debt in the condensed consolidated balance sheet. Under the terms of the Revolving Credit Facility, as of August 4, 2018, the Company could borrow up to 90.0% of the most recent appraised value (valued at cost, discounted for the current net orderly liquidation value) of its eligible inventory, as defined, up to $100.0 million. As of August 4, 2018, the Company had $21.2 million of outstanding indebtedness under the Term Loan Facility and no outstanding borrowings under the Revolving Credit Facility, with $95.4 million of borrowing availability, letter of credit commitments of $4.3 million and $0.3 million of rent reserves. The interest rate on the outstanding borrowings under the Term Loan Facility was 1.75% plus the 30-day Eurodollar Rate, or 3.82%. The Revolving Credit Facility also contains a variable unused line fee ranging from 0.250% to 0.375% As of August 4, 2018 and July 29, 2017, the amounts outstanding under the Term Loan Facility are net of unamortized original issue discount of $5,000 and $0.1 million and deferred financing fees of $0.1 million and $0.7 million in each respective period. The Credit Facilities are collateralized by the Company’s assets and equity and contain financial covenants, as well as certain business covenants, including restrictions on dividend payments, which the Company must comply with during the term of the agreements. The financial covenants include a consolidated fixed charge coverage ratio test of at least 1.1 to 1.0 and a total leverage test of no greater than 3.5 to 1.0. The Company was in compliance with all terms of the Credit Facilities during the thirteen and twenty-six weeks ended August 4, 2018. The provisions of the Credit Facilities restrict all of the net assets of the Company’s consolidated subsidiaries, which constitutes all of the net assets on the Company’s consolidated balance sheet as of August 4, 2018, from being used to pay any dividends or make other restricted payments to the Company without prior written consent from the financial institutions that are a party to the Credit Facilities, subject to certain exceptions. |
Income Taxes
Income Taxes | 6 Months Ended |
Aug. 04, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | (6) Income Taxes The provision for income taxes is based on the current estimate of the annual effective tax rate and is adjusted as necessary for discrete events occurring in a particular period. The effective tax rates for the thirteen and twenty-six weeks ended August 4, 2018 were 13.7% and 13.8%, respectively. The effective tax rates for the thirteen and twenty-six weeks ended July 29, 2017 were 31.3% and 28.8%, respectively. The effective tax rate was lower for the thirteen and twenty-six weeks ended August 4, 2018 primarily as a result of the provisions of the 2017 Tax Cuts and Jobs Act, which, among other things, permanently lowered the federal corporate tax rate to 21% from the prior maximum rate of 35%, effective for tax years including or commencing January 1, 2018. In addition, the thirteen weeks ended August 4, 2018 and July 29, 2017 included a discrete tax benefit of $3.8 million and $1.9 million, respectively, due to the excess tax benefits related to stock-based compensation. The twenty-six weeks ended August 4, 2018 and July 29, 2017 included a similar discrete tax benefit of $7.7 million and $5.1 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Aug. 04, 2018 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | (7) Commitments and Contingencies The Company commenced 21 new store leases during the twenty-six weeks ended August 4, 2018. The fully executed leases have initial terms of approximately seven years with options to renew for three or four successive five-year periods. The initial terms of these new store leases have future minimum lease payments totaling approximately $27.4 million. From time to time the Company may be involved in claims and legal actions that arise in the ordinary course of its business. The Company cannot predict the outcome of any litigation or suit to which it is a party. However, the Company does not believe that an unfavorable decision of any of the current claims or legal actions against it, individually or in the aggregate, will have a material adverse effect on its financial position, results of operations, liquidity or capital resources. |
Equity Incentive Plans
Equity Incentive Plans | 6 Months Ended |
Aug. 04, 2018 | |
Equity Incentive Plans [Abstract] | |
Equity Incentive Plans | (8) Equity Incentive Plans During 2012, Ollie’s established an equity incentive plan (the “2012 Plan”) under which stock options were granted to executive officers and key employees as deemed appropriate under the provisions of the 2012 Plan, with an exercise price at the fair value of the underlying stock on the date of grant. The vesting period for options granted under the 2012 Plan was five years (20% ratably per year). Options granted under the 2012 Plan are subject to employment for vesting, expire 10 years from the date of grant and are not transferable other than upon death. As of July 15, 2015, the date of the pricing of the Company’s initial public offering, no additional equity grants will be made under the 2012 Plan. In connection with its initial public offering, the Company adopted the 2015 equity incentive plan (the “2015 Plan”) pursuant to which the Company’s Board of Directors may grant stock options, restricted shares or other awards to employees, directors and consultants. The 2015 Plan allows for the issuance of up to 5,250,000 shares. Awards will be made pursuant to agreements and may be subject to vesting and other restrictions as determined by the Board of Directors or the Compensation Committee of the Board. The Company uses authorized and unissued shares to satisfy share award exercises. As of August 4, 2018, there were 3,459,101 shares available for grant under the 2015 Plan. Stock Options The exercise price for stock options is determined at the fair value of the underlying stock on the date of grant. The vesting period for awards granted under the 2015 Plan is generally set at four years (25% ratably per year). Awards are subject to employment for vesting, expire 10 years from the date of grant, and are not transferable other than upon death. A summary of the Company’s stock option activity and related information follows for the twenty-six weeks ended August 4, 2018 (in thousands, except share and per share amounts): Number of options Weighted average exercise price Weighted average remaining contractual term (years) Outstanding at February 3, 2018 4,458,387 $ 11.65 Granted 276,276 58.90 Forfeited (12,922 ) 33.29 Exercised (563,564 ) 10.95 Outstanding at August 4, 2018 4,158,177 14.82 5.9 Exercisable at August 4, 2018 2,766,732 9.03 4.9 The Company uses the Black-Scholes option pricing model to value its stock option awards. The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards. The expected life of stock options was estimated using the “simplified method,” as the Company has no historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior for its stock option grants. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. For stock price volatility, the Company uses comparable public companies as a basis for its expected volatility to calculate the fair value of option grants. The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the option. The weighted average grant date fair value per option for options granted during the twenty-six weeks ended August 4, 2018 and July 29, 2017 was $18.77 and $10.57, respectively. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model that used the weighted average assumptions in the following table: Twenty-six weeks ended August 4, 2018 July 29, 2017 Risk-free interest rate 2.70 % 2.20 % Expected dividend yield — — Expected term (years) 6.25 years 6.25 years Expected volatility 25.85 % 28.31 % Restricted Stock Units Restricted stock units (“RSUs”) are issued at a value not less than the fair market value of the common stock on the date of the grant. RSUs granted to date vest ratably over three or four years or cliff vest in one or four years. Awards are subject to employment for vesting and are not transferable other than upon death. A summary of the Company’s RSU activity and related information for the twenty-six weeks ended August 4, 2018 is as follows: Number of shares Weighted average grant date fair value Non-vested balance at February 3, 2018 207,346 $ 26.15 Granted 63,442 58.86 Vested (51,424 ) 26.06 Non-vested balance at August 4, 2018 219,364 35.63 Stock-Based Compensation Expense The compensation cost for stock options and RSUs which have been recorded within selling, general and administrative expenses related to the Company’s equity incentive plans was $1.9 million and $2.1 million for the thirteen weeks ended August 4, 2018 and July 29, 2017, respectively and $3.5 million and $4.0 million for the twenty-six weeks ended August 4, 2018 and July 29, 2017, respectively. As of August 4, 2018 there was $16.9 million of total unrecognized compensation cost related to non-vested stock-based compensation arrangements. That cost is expected to be recognized over a weighted average period of 2.7 years. Compensation costs related to awards are recognized using the straight-line method. |
Transactions with Related Parti
Transactions with Related Parties | 6 Months Ended |
Aug. 04, 2018 | |
Transactions with Related Parties [Abstract] | |
Transactions with Related Parties | (9) Transactions with Related Parties The Company has entered into five non-cancelable operating leases with related parties for office and store locations. Ollie’s made $0.6 million in rent payments to such related parties during each of the twenty-six weeks ended August 4, 2018 and July 29, 2017 . |
Subsequent Events
Subsequent Events | 6 Months Ended |
Aug. 04, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | (10) Subsequent Events On August 29, 2018, the Company acquired a total of 12 former Toys “R” Us store sites as part of the ongoing real estate auctions for Toys “R” Us locations being conducted in the United States Bankruptcy Court for the Eastern District of Virginia (Richmond Division). The Company paid an aggregate of approximately $42.0 million for the store locations. |
Organization and Summary of S17
Organization and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Aug. 04, 2018 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Fiscal Year | (b) Fiscal Year Ollie’s follows a 52/53-week fiscal year, which ends on the Saturday nearer to January 31 of the following year. References to the thirteen weeks ended August 4, 2018 and July 29, 2017 refer to the thirteen weeks from May 6, 2018 to August 4, 2018 and from April 30, 2017 to July 29, 2017, respectively. References to year-to-date periods ending August 4, 2018 and July 29, 2017 refer to the twenty-six weeks from February 4, 2018 to August 4, 2018 and January 29, 2017 to July 29, 2017, respectively. References to “2017” refer to the fiscal year ended February 3, 2018, which consisted of a 53-week period. References to “2018” refer to the fiscal year ending February 2, 2019, which consists of a 52-week period. |
Basis of Presentation | (c) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly the Company’s results of operations, financial condition, and cash flows for all periods presented. The condensed consolidated balance sheets as of August 4, 2018 and July 29, 2017, the condensed consolidated statements of income for the thirteen and twenty-six weeks ended August 4, 2018 and July 29, 2017, respectively, and the condensed consolidated statements of stockholders’ equity and cash flows for the twenty-six weeks ended August 4, 2018 and July 29, 2017 have been prepared by the Company and are unaudited. The Company’s business is seasonal in nature and results of operations for the interim periods presented are not necessarily indicative of operating results for 2018 or any other period. All intercompany accounts, transactions, and balances have been eliminated in consolidation. The Company’s balance sheet as of February 3, 2018, presented herein, has been derived from the audited balance sheet included in the Company’s Annual Report on Form 10-K filed with the SEC on April 4, 2018 (“Annual Report”), but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the financial statements for 2017 and footnotes thereto included in the Annual Report. |
Segment Reporting | For purposes of the disclosure requirements for segments of a business enterprise, it has been determined that the Company is comprised of one operating segment. |
Use of Estimates | (d) Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fair Value Disclosures | (e) Fair Value Disclosures Fair value is defined as the price which the Company would receive to sell an asset or pay to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. In determining fair value, GAAP establishes a three‑level hierarchy used in measuring fair value, as follows: · Level 1 inputs are quoted prices available for identical assets and liabilities in active markets. · Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets or other inputs which are observable or can be corroborated by observable market data. · Level 3 inputs are less observable and reflect the Company’s assumptions. The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, its revolving credit facility and its term loan facility. The carrying amount of cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of their short maturities. The carrying amount of the revolving credit facility and term loan facility approximates its fair value because the interest rates are adjusted regularly based on current market conditions. |
Recently Issued Accounting Pronouncements | (f) Recently Issued Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases |
Net Sales (Tables)
Net Sales (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Net Sales [Abstract] | |
Cumulative Effect of Changes to Consolidated Balance Sheet for Adoption of ASU 2014-09 | The cumulative effect of changes to the Company’s consolidated February 4, 2018 balance sheet for the adoption of ASU 2014-09 was as follows (in thousands): Balance at February 3, 2018 Adjustments Due to ASU 2014-09 Balance at February 4, 2018 Assets Inventories $ 255,185 $ 339 $ 255,524 Liabilities Accrued expenses and other 46,327 7,853 54,180 Deferred income taxes 59,073 (1,923 ) 57,150 Equity Retained earnings 213,019 (5,591 ) 207,428 |
Ollie's Army Loyalty Program Liability | · Revenue is deferred for the Ollie’s Army loyalty program where members accumulate points that can be redeemed for discounts on future purchases Balance at February 3, 2018 $ 8,321 Revenue deferred 5,861 Revenue recognized (5,553 ) Balance at August 4, 2018 $ 8,629 |
Gift Card Liability | · Gift card breakage for gift card liabilities not subject to escheatment is recognized as revenue in proportion to the redemption of gift cards rather than when redemption of the gift card was considered remote. Ollie’s gift cards do not expire. The rate applied to redemptions is based upon a historical breakage rate. Gift cards are combined in one homogenous pool and are not separately identifiable. Therefore, the revenue recognized consisted of gift cards that were included in the liability at the beginning of the period as well as gift cards that were issued during the period. The following table is a reconciliation of the gift card liability (in thousands): Balance at February 3, 2018 $ 1,223 Gift card issuances 1,966 Gift card redemption and breakage (2,009 ) Balance at August 4, 2018 $ 1,180 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Earnings per Common Share [Abstract] | |
Earnings per Common Share | Thirteen weeks ended Twenty-six weeks ended August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 Net income $ 29,848 $ 19,712 $ 60,302 $ 38,678 Weighted average number of common shares outstanding – Basic 62,444 61,194 62,306 61,037 Dilutive impact of stock options and restricted stock units 3,424 3,695 3,439 3,603 Weighted average number of common shares outstanding - Diluted 65,868 64,889 65,745 64,640 Earnings per common share – Basic $ 0.48 $ 0.32 $ 0.97 $ 0.63 Earnings per common share - Diluted $ 0.45 $ 0.30 $ 0.92 $ 0.60 |
Accrued Expenses and Other (Tab
Accrued Expenses and Other (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Accrued Expenses and Other [Abstract] | |
Accrued Expenses and Other | Accrued expenses and other consists of the following (in thousands): August 4, 2018 July 29, 2017 February 3, 2018 Compensation and benefits $ 11,557 $ 8,630 $ 14,181 Deferred revenue 8,629 - - Insurance 5,198 3,370 2,768 Freight 4,113 5,184 3,836 Real estate related 3,888 3,623 4,019 Sales and use taxes 3,815 2,990 3,865 Advertising 1,968 1,966 5,523 Other 12,594 11,277 12,135 $ 51,762 $ 37,040 $ 46,327 |
Debt Obligations and Financin21
Debt Obligations and Financing Arrangements (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Debt Obligations and Financing Arrangements [Abstract] | |
Long-term Debt | Long-term debt consists of the following (in thousands): August 4, 2018 July 29, 2017 February 3, 2018 Term loan, net $ 21,173 $ 128,027 $ 48,530 Capital leases 521 412 463 Total debt 21,694 128,439 48,993 Less: current portion (10,178 ) (8,887 ) (10,158 ) Long-term debt $ 11,516 $ 119,552 $ 38,835 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Equity Incentive Plans [Abstract] | |
Stock Option Activity | A summary of the Company’s stock option activity and related information follows for the twenty-six weeks ended August 4, 2018 (in thousands, except share and per share amounts): Number of options Weighted average exercise price Weighted average remaining contractual term (years) Outstanding at February 3, 2018 4,458,387 $ 11.65 Granted 276,276 58.90 Forfeited (12,922 ) 33.29 Exercised (563,564 ) 10.95 Outstanding at August 4, 2018 4,158,177 14.82 5.9 Exercisable at August 4, 2018 2,766,732 9.03 4.9 |
Weighted Average Assumptions | The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model that used the weighted average assumptions in the following table: Twenty-six weeks ended August 4, 2018 July 29, 2017 Risk-free interest rate 2.70 % 2.20 % Expected dividend yield — — Expected term (years) 6.25 years 6.25 years Expected volatility 25.85 % 28.31 % |
RSU Activity | A summary of the Company’s RSU activity and related information for the twenty-six weeks ended August 4, 2018 is as follows: Number of shares Weighted average grant date fair value Non-vested balance at February 3, 2018 207,346 $ 26.15 Granted 63,442 58.86 Vested (51,424 ) 26.06 Non-vested balance at August 4, 2018 219,364 35.63 |
Organization and Summary of S23
Organization and Summary of Significant Accounting Policies (Details) | 6 Months Ended |
Aug. 04, 2018LocationStateSegment | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Number of retail locations | Location | 282 |
Number of states in which retail locations are located | State | 22 |
Number of operating segments | Segment | 1 |
Net Sales (Details)
Net Sales (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Aug. 04, 2018 | Feb. 03, 2018 | Jul. 29, 2017 | |
Assets [Abstract] | |||
Inventories | $ 287,440 | $ 255,185 | $ 253,008 |
Liabilities [Abstract] | |||
Accrued expenses and other | 51,762 | 46,327 | 37,040 |
Deferred income taxes | 57,184 | 59,073 | 87,600 |
Equity [Abstract] | |||
Retained earnings | $ 267,730 | 213,019 | $ 124,103 |
Ollie's Army Loyalty Program Liability [Abstract] | |||
Expiration period of discount awards from date of issuance | 90 days | ||
Balance at beginning of period | $ 0 | ||
Balance at end of period | 8,629 | ||
Gift Card Liability [Abstract] | |||
Balance at beginning of period | 1,223 | ||
Gift card issuances | 1,966 | ||
Gift card redemption and breakage | (2,009) | ||
Balance at end of period | 1,180 | ||
ASU 2014-09 [Member] | |||
Assets [Abstract] | |||
Inventories | 255,524 | ||
Liabilities [Abstract] | |||
Accrued expenses and other | 54,180 | ||
Deferred income taxes | 57,150 | ||
Equity [Abstract] | |||
Retained earnings | 207,428 | ||
Ollie's Army Loyalty Program Liability [Abstract] | |||
Balance at beginning of period | 8,321 | ||
Revenue deferred | 5,861 | ||
Revenue recognized | (5,553) | ||
Balance at end of period | $ 8,629 | ||
Adjustments Due to ASU 2014-09 [Member] | ASU 2014-09 [Member] | |||
Assets [Abstract] | |||
Inventories | 339 | ||
Liabilities [Abstract] | |||
Accrued expenses and other | 7,853 | ||
Deferred income taxes | (1,923) | ||
Equity [Abstract] | |||
Retained earnings | $ (5,591) |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Earnings per Common Share [Abstract] | ||||
Net income | $ 29,848 | $ 19,712 | $ 60,302 | $ 38,678 |
Weighted average number of common shares outstanding - Basic (in shares) | 62,444,000 | 61,194,000 | 62,306,000 | 61,037,000 |
Dilutive impact of stock options and restricted stock units (in shares) | 3,424,000 | 3,695,000 | 3,439,000 | 3,603,000 |
Weighted average number of common shares outstanding - Diluted (in shares) | 65,868,000 | 64,889,000 | 65,745,000 | 64,640,000 |
Earnings per common share - Basic (in dollars per share) | $ 0.48 | $ 0.32 | $ 0.97 | $ 0.63 |
Earnings per common share - Diluted (in dollars per share) | $ 0.45 | $ 0.30 | $ 0.92 | $ 0.60 |
Stock Options [Member] | ||||
Earnings per Common Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 266,285 | 345,326 | 195,512 | 249,609 |
Non-vested Restricted Stock Units [Member] | ||||
Earnings per Common Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 345 | 88 | 13,339 | 20,093 |
Accrued Expenses and Other (Det
Accrued Expenses and Other (Details) - USD ($) $ in Thousands | Aug. 04, 2018 | Feb. 03, 2018 | Jul. 29, 2017 |
Accrued Expenses and Other [Abstract] | |||
Compensation and benefits | $ 11,557 | $ 14,181 | $ 8,630 |
Deferred revenue | 8,629 | 0 | 0 |
Insurance | 5,198 | 2,768 | 3,370 |
Freight | 4,113 | 3,836 | 5,184 |
Real estate related | 3,888 | 4,019 | 3,623 |
Sales and use taxes | 3,815 | 3,865 | 2,990 |
Advertising | 1,968 | 5,523 | 1,966 |
Other | 12,594 | 12,135 | 11,277 |
Total accrued expenses | $ 51,762 | $ 46,327 | $ 37,040 |
Debt Obligations and Financin27
Debt Obligations and Financing Arrangements, Long-term Debt (Details) - USD ($) $ in Thousands | Aug. 04, 2018 | Feb. 03, 2018 | Jul. 29, 2017 |
Debt Obligations and Financing Arrangements [Abstract] | |||
Term loan, net | $ 21,173 | $ 48,530 | $ 128,027 |
Capital leases | 521 | 463 | 412 |
Total debt | 21,694 | 48,993 | 128,439 |
Less: current portion | (10,178) | (10,158) | (8,887) |
Long-term debt | $ 11,516 | $ 38,835 | $ 119,552 |
Debt Obligations and Financin28
Debt Obligations and Financing Arrangements, Credit Facilities (Details) - USD ($) $ in Thousands | Jan. 29, 2016 | Aug. 04, 2018 | Jul. 29, 2017 | Feb. 03, 2018 |
Debt Obligations and Financing Arrangements [Abstract] | ||||
Outstanding indebtedness | $ 21,173 | $ 128,027 | $ 48,530 | |
Credit Facilities [Member] | ||||
Debt Obligations and Financing Arrangements [Abstract] | ||||
Maturity date | Jan. 29, 2021 | |||
Credit Facilities [Member] | Minimum [Member] | ||||
Debt Obligations and Financing Arrangements [Abstract] | ||||
Consolidated fixed charge coverage ratio | 1.1 | |||
Credit Facilities [Member] | Maximum [Member] | ||||
Debt Obligations and Financing Arrangements [Abstract] | ||||
Total leverage ratio | 3.5 | |||
Credit Facilities [Member] | Federal Funds Effective Rate [Member] | ||||
Debt Obligations and Financing Arrangements [Abstract] | ||||
Basis spread | 0.50% | |||
Credit Facilities [Member] | Eurodollar Rate [Member] | ||||
Debt Obligations and Financing Arrangements [Abstract] | ||||
Basis spread | 1.00% | |||
Credit Facilities [Member] | Eurodollar Rate [Member] | Minimum [Member] | ||||
Debt Obligations and Financing Arrangements [Abstract] | ||||
Basis spread | 1.75% | |||
Credit Facilities [Member] | Eurodollar Rate [Member] | Maximum [Member] | ||||
Debt Obligations and Financing Arrangements [Abstract] | ||||
Basis spread | 2.25% | |||
Credit Facilities [Member] | Base Rate [Member] | Minimum [Member] | ||||
Debt Obligations and Financing Arrangements [Abstract] | ||||
Basis spread | 0.75% | |||
Credit Facilities [Member] | Base Rate [Member] | Maximum [Member] | ||||
Debt Obligations and Financing Arrangements [Abstract] | ||||
Basis spread | 1.25% | |||
Term Loan Facility [Member] | ||||
Debt Obligations and Financing Arrangements [Abstract] | ||||
Face amount | $ 200,000 | |||
Basis spread | 1.75% | |||
Principal payment | $ 2,500 | |||
Frequency of principal payment | Quarterly | |||
Repayment of debt | $ 25,000 | 65,000 | ||
Debt issuance costs written off | 100 | 300 | ||
Original issue discount written off | 7 | 100 | ||
Outstanding indebtedness | $ 21,200 | |||
Interest rate on outstanding borrowings | 3.82% | |||
Unamortized original issue discount | $ 5 | 100 | ||
Deferred financing fees | $ 100 | $ 700 | ||
Term Loan Facility [Member] | Eurodollar Rate [Member] | ||||
Debt Obligations and Financing Arrangements [Abstract] | ||||
Term of variable rate | 30 days | |||
Revolving Credit Facility [Member] | ||||
Debt Obligations and Financing Arrangements [Abstract] | ||||
Maximum borrowing capacity | 100,000 | $ 100,000 | ||
Percentage of most recent appraised value of eligible inventory | 90.00% | |||
Outstanding borrowings | $ 0 | |||
Borrowing availability | 95,400 | |||
Letter of credit commitments | 4,300 | |||
Rent reserves | $ 300 | |||
Revolving Credit Facility [Member] | Minimum [Member] | ||||
Debt Obligations and Financing Arrangements [Abstract] | ||||
Variable unused line fee percentage | 0.25% | |||
Revolving Credit Facility [Member] | Maximum [Member] | ||||
Debt Obligations and Financing Arrangements [Abstract] | ||||
Variable unused line fee percentage | 0.375% | |||
Letters of Credit [Member] | ||||
Debt Obligations and Financing Arrangements [Abstract] | ||||
Maximum borrowing capacity | 25,000 | |||
Swingline Loans [Member] | ||||
Debt Obligations and Financing Arrangements [Abstract] | ||||
Maximum borrowing capacity | $ 25,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 7 Months Ended | 12 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | ||||||
Effective income tax rate | 13.70% | 31.30% | 13.80% | 28.80% | ||
Statutory federal rate | 21.00% | 35.00% | ||||
Excess tax benefits related to stock-based compensation | $ (3.8) | $ (1.9) | $ (7.7) | $ (5.1) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - New Stores [Member] $ in Millions | 6 Months Ended |
Aug. 04, 2018USD ($)LeaseOption | |
Commitments and Contingencies [Abstract] | |
Number of new store leases | Lease | 21 |
Initial term of leases | 7 years |
Renewal term of leases | 5 years |
Future minimum lease payments | $ | $ 27.4 |
Minimum [Member] | |
Commitments and Contingencies [Abstract] | |
Number of options to renew leases | 3 |
Maximum [Member] | |
Commitments and Contingencies [Abstract] | |
Number of options to renew leases | 4 |
Equity Incentive Plans, Equity
Equity Incentive Plans, Equity Incentive Plans (Details) | 6 Months Ended |
Aug. 04, 2018shares | |
2012 Plan [Member] | Stock Options [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting period | 5 years |
Vesting percentage | 20.00% |
Expiration period | 10 years |
2015 Plan [Member] | |
Equity Incentive Plans [Abstract] | |
Number of shares authorized for issuance (in shares) | 5,250,000 |
Number of shares available for grant (in shares) | 3,459,101 |
2015 Plan [Member] | Stock Options [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting period | 4 years |
Vesting percentage | 25.00% |
Expiration period | 10 years |
Equity Incentive Plans, Stock O
Equity Incentive Plans, Stock Option Activity (Details) - Stock Options [Member] | 6 Months Ended |
Aug. 04, 2018$ / sharesshares | |
Number of Options [Roll Forward] | |
Outstanding at beginning of period (in shares) | shares | 4,458,387 |
Granted (in shares) | shares | 276,276 |
Forfeited (in shares) | shares | (12,922) |
Exercised (in shares) | shares | (563,564) |
Outstanding at end of period (in shares) | shares | 4,158,177 |
Exercisable at end of period (in shares) | shares | 2,766,732 |
Weighted Average Exercise Price [Abstract] | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 11.65 |
Granted (in dollars per share) | $ / shares | 58.90 |
Forfeited (in dollars per share) | $ / shares | 33.29 |
Exercised (in dollars per share) | $ / shares | 10.95 |
Outstanding at end of period (in dollars per share) | $ / shares | 14.82 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 9.03 |
Weighted Average Remaining Contractual Term [Abstract] | |
Outstanding at end of period | 5 years 10 months 24 days |
Exercisable at end of period | 4 years 10 months 24 days |
Equity Incentive Plans, Weighte
Equity Incentive Plans, Weighted Average Assumptions (Details) - $ / shares | 6 Months Ended | |
Aug. 04, 2018 | Jul. 29, 2017 | |
Equity Incentive Plans [Abstract] | ||
Weighted average grant date fair value per option granted (in dollars per share) | $ 18.77 | $ 10.57 |
Risk-free interest rate | 2.70% | 2.20% |
Expected dividend yield | 0.00% | 0.00% |
Expected term | 6 years 3 months | 6 years 3 months |
Expected volatility | 25.85% | 28.31% |
Equity Incentive Plans, RSU Act
Equity Incentive Plans, RSU Activity (Details) - Restricted Stock Units [Member] | 6 Months Ended |
Aug. 04, 2018$ / sharesshares | |
Number of Shares [Roll Forward] | |
Non-vested at beginning of period (in shares) | shares | 207,346 |
Granted (in shares) | shares | 63,442 |
Vested (in shares) | shares | (51,424) |
Non-vested at end of period (in shares) | shares | 219,364 |
Weighted Average Grant Date Fair Value [Abstract] | |
Non-vested at beginning of period (in dollars per share) | $ / shares | $ 26.15 |
Granted (in dollars per share) | $ / shares | 58.86 |
Vested (in dollars per share) | $ / shares | 26.06 |
Non-vested at end of period (in dollars per share) | $ / shares | $ 35.63 |
Minimum [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting period | 3 years |
Cliff vesting period | 1 year |
Maximum [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting period | 4 years |
Cliff vesting period | 4 years |
Equity Incentive Plans, Stock-B
Equity Incentive Plans, Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Stock-Based Compensation Expense [Abstract] | ||||
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 16.9 | $ 16.9 | ||
Weighted average period to recognize stock-based compensation expense | 2 years 8 months 12 days | |||
Selling, General and Administrative Expenses [Member] | ||||
Stock-Based Compensation Expense [Abstract] | ||||
Compensation expense | $ 1.9 | $ 2.1 | $ 3.5 | $ 4 |
Transactions with Related Par36
Transactions with Related Parties (Details) - Operating Leases for Office and Store Locations [Member] $ in Millions | 6 Months Ended | |
Aug. 04, 2018USD ($)Lease | Jul. 29, 2017USD ($) | |
Transactions with Related Parties [Abstract] | ||
Number of non-cancelable operating leases with related parties | Lease | 5 | |
Payments to related parties | $ | $ 0.6 | $ 0.6 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | Aug. 29, 2018USD ($)Store | Aug. 04, 2018USD ($) | Jul. 29, 2017USD ($) |
Subsequent Events [Abstract] | |||
Purchases of property and equipment | $ 10,241 | $ 8,667 | |
Subsequent Event [Member] | |||
Subsequent Events [Abstract] | |||
Number of Toys "R" Us store sites acquired | Store | 12 | ||
Purchases of property and equipment | $ 42,000 |