Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
May 04, 2019 | Jun. 05, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Ollie's Bargain Outlet Holdings, Inc. | |
Entity Central Index Key | 0001639300 | |
Current Fiscal Year End Date | --02-01 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 63,483,898 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 4, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Condensed Consolidated Statements of Income (Unaudited) [Abstract] | ||
Net sales | $ 324,854 | $ 275,739 |
Cost of sales | 192,120 | 162,863 |
Gross profit | 132,734 | 112,876 |
Selling, general and administrative expenses | 83,332 | 72,364 |
Depreciation and amortization expenses | 3,409 | 2,763 |
Pre-opening expenses | 5,209 | 1,764 |
Operating income | 40,784 | 35,985 |
Interest (income) expense, net | (145) | 538 |
Loss on extinguishment of debt | 0 | 100 |
Income before income taxes | 40,929 | 35,347 |
Income tax expense | 2,212 | 4,893 |
Net income | $ 38,717 | $ 30,454 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.61 | $ 0.49 |
Diluted (in dollars per share) | $ 0.59 | $ 0.46 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 63,188 | 62,169 |
Diluted (in shares) | 66,176 | 65,624 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Current assets: | |||
Cash and cash equivalents | $ 58,511 | $ 51,941 | $ 27,614 |
Inventories | 329,065 | 296,407 | 276,040 |
Accounts receivable | 961 | 570 | 414 |
Prepaid expenses and other assets | 5,723 | 9,579 | 8,132 |
Total current assets | 394,260 | 358,497 | 312,200 |
Property and equipment, net of accumulated depreciation of $64,446, $53,276 and $60,433, respectively | 134,498 | 119,052 | 55,647 |
Operating lease right-of-use assets | 273,099 | 0 | 0 |
Goodwill | 444,850 | 444,850 | 444,850 |
Trade name and other intangible assets, net of accumulated amortization of $0, $1,909 and $2,160, respectively | 230,559 | 232,304 | 232,555 |
Other assets | 2,022 | 4,300 | 2,084 |
Total assets | 1,479,288 | 1,159,003 | 1,047,336 |
Current liabilities: | |||
Current portion of long-term debt | 197 | 238 | 10,143 |
Accounts payable | 92,738 | 77,431 | 75,420 |
Income taxes payable | 9,429 | 7,393 | 10,858 |
Current portion of operating lease liabilities | 50,955 | 0 | 0 |
Accrued expenses and other | 58,773 | 65,934 | 47,067 |
Total current liabilities | 212,092 | 150,996 | 143,488 |
Revolving credit facility | 0 | 0 | 0 |
Long-term debt | 413 | 441 | 13,926 |
Deferred income taxes | 55,424 | 55,616 | 57,094 |
Long-term operating lease liabilities | 222,976 | 0 | 0 |
Other long-term liabilities | 7 | 9,298 | 7,113 |
Total liabilities | 490,912 | 216,351 | 221,621 |
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; 63,492, 62,358 and 63,015 shares issued, respectively | 63 | 63 | 62 |
Additional paid-in capital | 607,241 | 600,234 | 587,857 |
Retained earnings | 381,158 | 342,441 | 237,882 |
Treasury - common stock, at cost; 9 shares | (86) | (86) | (86) |
Total stockholders' equity | 988,376 | 942,652 | 825,715 |
Total liabilities and stockholders' equity | $ 1,479,288 | $ 1,159,003 | $ 1,047,336 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Assets | |||
Property and equipment, accumulated depreciation | $ 64,446 | $ 60,433 | $ 53,276 |
Trade name and other intangible assets, accumulated amortization | $ 0 | $ 2,160 | $ 1,909 |
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) | 63,492 | 63,015 | 62,358 |
Treasury - common stock (in shares) | 9 | 9 | 9 |
Condensed Consolidated Statem_2
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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of adopting ASU 2014-09 | 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 | ||||
Beginning balance (in shares) at Feb. 03, 2018 | (9) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | $ 0 | $ 0 | 1,600 | 0 | 1,600 |
Proceeds from stock options exercised | $ 0 | $ 0 | 3,492 | 0 | 3,492 |
Proceeds from stock options exercised (in shares) | 312 | 0 | |||
Vesting of restricted stock | $ 0 | $ 0 | 0 | 0 | 0 |
Vesting of restricted stock (in shares) | 51 | 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 | 30,454 | 30,454 |
Ending balance at May. 05, 2018 | $ 62 | $ (86) | 587,857 | 237,882 | 825,715 |
Ending balance (in shares) at May. 05, 2018 | 62,358 | ||||
Ending balance (in shares) at May. 05, 2018 | (9) | ||||
Beginning balance at Feb. 02, 2019 | $ 63 | $ (86) | 600,234 | 342,441 | 942,652 |
Beginning balance (in shares) at Feb. 02, 2019 | 63,015 | ||||
Beginning balance (in shares) at Feb. 02, 2019 | (9) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | $ 0 | $ 0 | 2,193 | 0 | 2,193 |
Proceeds from stock options exercised | $ 0 | $ 0 | 6,081 | 0 | 6,081 |
Proceeds from stock options exercised (in shares) | 437 | 0 | |||
Vesting of restricted stock | $ 0 | $ 0 | 0 | 0 | 0 |
Vesting of restricted stock (in shares) | 56 | 0 | |||
Common shares withheld for taxes | $ 0 | $ 0 | (1,267) | 0 | (1,267) |
Common shares withheld for taxes (in shares) | (16) | 0 | |||
Net income | $ 0 | $ 0 | 0 | 38,717 | 38,717 |
Ending balance at May. 04, 2019 | $ 63 | $ (86) | $ 607,241 | $ 381,158 | $ 988,376 |
Ending balance (in shares) at May. 04, 2019 | 63,492 | ||||
Ending balance (in shares) at May. 04, 2019 | (9) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 38,717 | $ 30,454 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 4,116 | 3,309 |
Amortization of debt issuance costs | 104 | 128 |
Amortization of original issue discount | 0 | 2 |
Loss on extinguishment of debt | 0 | 100 |
Gain on sale of assets | (10) | (6) |
Amortization of intangibles | 0 | 84 |
Deferred income tax provision (benefit) | 11 | (57) |
Deferred rent expense | 0 | 128 |
Stock-based compensation expense | 2,193 | 1,600 |
Changes in operating assets and liabilities: | ||
Inventories | (32,658) | (20,855) |
Accounts receivable | (391) | 857 |
Prepaid expenses and other assets | (876) | (188) |
Accounts payable | 15,424 | 1,500 |
Income taxes payable | 2,036 | 4,823 |
Accrued expenses and other liabilities | (6,690) | (6,531) |
Net cash provided by operating activities | 21,976 | 15,348 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (20,123) | (4,719) |
Proceeds from sale of property and equipment | 16 | 11 |
Net cash used in investing activities | (20,107) | (4,708) |
Cash flows from financing activities: | ||
Borrowings on revolving credit facility | 336,965 | 287,750 |
Repayments on revolving credit facility | (336,965) | (287,750) |
Repayments on term loan and finance leases | (113) | (25,050) |
Proceeds from stock option exercises | 6,081 | 3,492 |
Common shares withheld for taxes | (1,267) | (702) |
Net cash provided by (used in) financing activities | 4,701 | (22,260) |
Net increase (decrease) in cash and cash equivalents | 6,570 | (11,620) |
Cash and cash equivalents at the beginning of the period | 51,941 | 39,234 |
Cash and cash equivalents at the end of the period | 58,511 | 27,614 |
Cash paid during the period for: | ||
Interest | 129 | 421 |
Income taxes | 163 | 127 |
Non-cash investing activities: | ||
Accrued purchases of property and equipment | $ 5,136 | $ 1,279 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 3 Months Ended |
May 04, 2019 | |
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 324 retail locations in 23 states as of May 4, 2019. 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, Texas, 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 calendar year. References to the thirteen weeks ended May 4, 2019 and May 5, 2018 refer to the thirteen weeks from February 3, 2019 to May 4, 2019 and from February 4, 2018 to May 5, 2018, respectively. References to “2018” refer to the fiscal year ended February 2, 2019, which consisted of a 52-week period. References to “2019” refer to the fiscal year ending February 1, 2020, 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 May 4, 2019 and May 5, 2018, and the condensed consolidated statements of income, stockholders’ equity and cash flows for the thirteen weeks ended May 4, 2019 and May 5, 2018 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 2019 or any other period. All intercompany accounts, transactions, and balances have been eliminated in consolidation. The Company’s balance sheet as of February 2, 2019, 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 March 29, 2019 (“Annual Report”), but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the financial statements for 2018 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, and its credit facilities. 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 Company’s credit facilities approximates its fair value because the interest rates are adjusted regularly based on current market conditions. (f) Recently Adopted Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases The Company adopted ASU 2016-02 as of February 3, 2019 using the modified retrospective transition method, including the option to not restate comparative periods. As a part of the adoption process, the Company has elected the practical expedients that do not require it to reassess existing contracts to determine if they contain leases under the new definition of a lease, or to reassess historical lease classification or initial direct costs. The Company also adopted the practical expedient to not separate lease and non-lease components for new leases after adoption of the new standard. In addition, the Company applied a policy election to exclude leases with an initial term of 12 months or less from balance sheet recognition. The Company did not adopt the hindsight practical expedient and, therefore, will continue to utilize lease terms determined under previous lease guidance. Adoption of the standard had a material impact on the condensed consolidated balance sheet and related disclosures and resulted in recognition of right-of-use assets of $268 .2 .1 |
Net Sales
Net Sales | 3 Months Ended |
May 04, 2019 | |
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. Revenue Recognition Revenue is deferred for the Ollie’s Army loyalty program where members accumulate points that can be redeemed for discounts on future purchases. The Company has determined it has an additional performance obligation to Ollie’s Army members at the time of the initial transaction. The Company allocates the transaction price to the initial transaction and the discount awards based upon its relative standalone selling price, which considers historical redemption patterns for the award. Revenue is recognized as those discount awards are redeemed. Discount awards which are issued upon the achievement of specified point levels are valid for a maximum of 90 days from the date of issuance. At the end of each fiscal period, unredeemed discount awards and accumulated points to earn a future discount award are reflected as a liability. Discount awards are combined in one homogeneous pool and are not separately identifiable. Therefore, the revenue recognized consists of discount awards redeemed that were included in the deferred revenue balance at the beginning of the period as well as discount awards issued during the current period. The following table is a reconciliation of the liability related to this program (in thousands): Thirteen weeks ended May 4, 2019 May 5, 2018 Beginning Balance $ 9,055 $ 8,321 Revenue deferred 4,294 2,575 Revenue recognized (3,939 ) (2,364 ) Ending Balance $ 9,410 $ 8,532 Gift card breakage for gift card liabilities not subject to escheatment is recognized as revenue in proportion to the redemption of gift cards. 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 consists 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): Thirteen weeks ended May 4, 2019 May 5, 2018 Beginning Balance $ 1,448 $ 1,223 Gift card issuances 1,065 908 Gift card redemption and breakage (1,167 ) (990 ) Ending Balance $ 1,346 $ 1,141 |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
May 04, 2019 | |
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 May 4, 2019 May 5, 2018 Net income $ 38,717 $ 30,454 Weighted average number of common shares outstanding – Basic 63,188 62,169 Incremental shares from the assumed exercise of outstanding stock options and vesting of restricted stock units 2,988 3,455 Weighted average number of common shares outstanding - Diluted 66,176 65,624 Earnings per common share – Basic $ 0.61 $ 0.49 Earnings per common share - Diluted $ 0.59 $ 0.46 The effect of the weighted average assumed exercise of stock options outstanding totaling 145,684 and 124,738 for the thirteen weeks ended May 4, 2019 and May 5, 2018, 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 29,127 and 26,333 for the thirteen weeks ended May 4, 2019 and May 5, 2018, respectively, were excluded from the calculation of diluted weighted average common shares outstanding because the effect would have been antidilutive. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
May 04, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | (4) Commitments and Contingencies Commitments On February 3, 2019, the first day of Ollie’s fiscal year 2019, the Company adopted ASU 2016-02, Leases Lease cost for operating leases for the thirteen weeks ended May 4, 2019 and May 5, 2018 was $15.2 million and $12.0 million, respectively, which was classified in selling, general and administrative expenses on the condensed consolidated statements of income. The following table summarizes the maturity of the Company’s operating lease liabilities as of May 4, 2019 (in thousands): 2019 $ 46,911 2020 54,289 2021 52,737 2022 46,555 2023 41,559 Thereafter 72,751 Total undiscounted lease payments (1) 314,802 Less: Imputed interest (40,871 ) Total lease obligations 273,931 Less: Current obligations under leases (50,955 ) Long-term lease obligations $ 222,976 (1) Lease obligations exclude $31.8 million of minimum lease payments for leases signed, but not commenced. The following table summarizes other information related to the Company’s operating leases as of May 4, 2019: Cash paid for operating leases $ 15,307 Non-cash right-of-use assets obtained in exchange for lease obligations 17,613 Weighted-average remaining lease term 6 years Weighted-average discount rate 4.5 % The Company adopted the new lease standard in the first quarter of 2019 as discussed in Note 1, and as required, the following disclosure is provided for periods prior to adoption. As of February 2, 2019, the following is a schedule by year of future minimum rental payments required under non-cancelable operating leases, including renewal periods that were reasonably assured and that had initial or remaining lease terms in excess of one year, excluding any payments related to insurance, taxes, or maintenance (in thousands): 2019 $ 60,804 2020 56,106 2021 49,226 2022 42,724 2023 34,876 Thereafter 65,218 Total minimum lease payments $ 308,954 Related Party Leases The Company has entered into five non-cancelable operating leases with related parties for office and store locations. Ollie’s made $0.3 million and $0.4 million in rent payments to such related parties during each of the thirteen weeks ended May 4, 2019 and May 5, 2018, respectively. Contingencies 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. |
Accrued Expenses and Other
Accrued Expenses and Other | 3 Months Ended |
May 04, 2019 | |
Accrued Expenses and Other [Abstract] | |
Accrued Expenses and Other | (5) Accrued Expenses and Other Accrued expenses and other consists of the following (in thousands): May 4, 2019 May 5, 2018 February 2, 2019 Deferred revenue $ 10,756 $ 8,532 $ 10,503 Compensation and benefits 7,266 6,910 16,438 Insurance 6,831 3,918 6,159 Freight 6,216 4,434 4,496 Sales and use taxes 5,820 4,721 3,464 Real estate related 3,950 3,772 3,748 Advertising 3,821 3,339 5,678 Other 14,113 11,441 15,448 $ 58,773 $ 47,067 $ 65,934 |
Debt Obligations and Financing
Debt Obligations and Financing Arrangements | 3 Months Ended |
May 04, 2019 | |
Debt Obligations and Financing Arrangements [Abstract] | |
Debt Obligations and Financing Arrangements | (6) Debt Obligations and Financing Arrangements Long-term debt consists of the following (in thousands): May 4, 2019 May 5, 2018 February 2, 2019 Term loan, net $ - $ 23,655 $ - Finance leases 610 414 679 Total debt 610 24,069 679 Less: current portion (197 ) (10,143 ) (238 ) Long-term debt $ 413 $ 13,926 $ 441 The Company’s credit facilities (“Credit Facilities”) consist of a $200.0 million term loan (“Term Loan Facility”), which was fully paid as of February 2, 2019, and a $100.0 million revolving credit facility (“Revolving Credit Facility”), which includes a $25.0 million sub-facility for letters of credit and a $25.0 million sub-facility for swingline loans. Loans under the Credit Facilities mature on January 29, 2021. 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 (total debt to adjusting EBITDA, as defined in the agreement). The Company made voluntary prepayments under the Term Loan Facility totaling $48.8 million during 2018, paying the balance in full. Under the terms of the Revolving Credit Facility, as of May 4, 2019, 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 May 4, 2019, the Company had no outstanding borrowings under the Revolving Credit Facility, with $98.1 million of borrowing availability, letter of credit commitments of $1.6 million and $0.3 million of rent reserves. The Revolving Credit Facility also contains a variable unused line fee ranging from 0.250% to 0.375% 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 weeks ended May 4, 2019. 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 May 4, 2019, 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 | 3 Months Ended |
May 04, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | (7) 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 weeks ended May 4, 2019 and May 5, 2018 were 5.4% and 13.8%, respectively. The reduced effective tax rate in the thirteen weeks ended May 4, 2019 was primarily the result of an increase in excess tax benefits related to stock-based compensation. These discrete tax benefits totaled $8.1 million and $3.9 million for the thirteen weeks ended May 4, 2019 and May 5, 2018, respectively. |
Equity Incentive Plans
Equity Incentive Plans | 3 Months Ended |
May 04, 2019 | |
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 is 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 May 4, 2019, there were 3,133,750 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 thirteen weeks ended May 4, 2019 (in thousands, except share and per share amounts): Number of options Weighted average exercise price Weighted average remaining contractual term (years) Outstanding at February 2, 2019 3,746,422 $ 15.29 Granted 286,849 79.96 Forfeited (13,504 ) 64.25 Exercised (437,204 ) 13.91 Outstanding at May 4, 2019 3,582,563 20.46 5.4 Exercisable at May 4, 2019 2,435,065 10.83 4.3 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 does not have sufficient 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 its historical information since its initial public offering as well as comparable public companies’ information 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 thirteen weeks ended May 4, 2019 and May 5, 2018 was $24.95 and $18.73, 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: Thirteen weeks ended May 4, 2019 May 5, 2018 Risk-free interest rate 2.43 % 2.70 % Expected dividend yield — — Expected term (years) 6.25 years 6.25 years Expected volatility 25.88 % 25.84 % 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 thirteen weeks ended May 4, 2019 is as follows: Number of shares Weighted average grant date fair value Non-vested balance at February 2, 2019 220,200 $ 35.75 Granted 58,530 80.12 Forfeited (799 ) 75.90 Vested (56,360 ) 33.84 Non-vested balance at May 4, 2019 221,571 47.81 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 $2.2 million and $1.6 million for the thirteen weeks ended May 4, 2019 and May 5, 2018, respectively. As of May 4, 2019, there was $22.4 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 3.0 years. Compensation costs related to awards are recognized using the straight-line method. |
Subsequent Events
Subsequent Events | 3 Months Ended |
May 04, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | (9) Subsequent Event s On May 22, 2019, the Company entered into an amended and restated credit agreement (the “Credit Agreement”). The Credit Agreement provides for a five-year $100.0 million revolving credit facility, which includes a $45.0 million sub-facility for letters of credit and a $25.0 million sub-facility for swingline loans (the “New Revolving Credit Facility”). The loans under the New Revolving Credit Facility mature on May 22, 2024. In addition, the Company may, at any time and from time to time add term loan facilities or additional revolving commitments up to $150.0 million together with certain additional amounts pursuant to terms and conditions set out in the Credit Agreement. On May 31, 2019, OBO Ventures, Inc. (“OBO”), a wholly owned subsidiary of the Company, entered into a sale-leaseback transaction with an unaffiliated third-party involving 12 former Toys “R” Us store locations which were acquired by OBO on August 29, 2018. OBO received approximately $42 million in cash for the 12 locations. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
May 04, 2019 | |
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 calendar year. References to the thirteen weeks ended May 4, 2019 and May 5, 2018 refer to the thirteen weeks from February 3, 2019 to May 4, 2019 and from February 4, 2018 to May 5, 2018, respectively. References to “2018” refer to the fiscal year ended February 2, 2019, which consisted of a 52-week period. References to “2019” refer to the fiscal year ending February 1, 2020, 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 May 4, 2019 and May 5, 2018, and the condensed consolidated statements of income, stockholders’ equity and cash flows for the thirteen weeks ended May 4, 2019 and May 5, 2018 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 2019 or any other period. All intercompany accounts, transactions, and balances have been eliminated in consolidation. The Company’s balance sheet as of February 2, 2019, 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 March 29, 2019 (“Annual Report”), but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the financial statements for 2018 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, and its credit facilities. 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 Company’s credit facilities approximates its fair value because the interest rates are adjusted regularly based on current market conditions. |
Recently Adopted Accounting Pronouncements | (f) Recently Adopted Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases The Company adopted ASU 2016-02 as of February 3, 2019 using the modified retrospective transition method, including the option to not restate comparative periods. As a part of the adoption process, the Company has elected the practical expedients that do not require it to reassess existing contracts to determine if they contain leases under the new definition of a lease, or to reassess historical lease classification or initial direct costs. The Company also adopted the practical expedient to not separate lease and non-lease components for new leases after adoption of the new standard. In addition, the Company applied a policy election to exclude leases with an initial term of 12 months or less from balance sheet recognition. The Company did not adopt the hindsight practical expedient and, therefore, will continue to utilize lease terms determined under previous lease guidance. Adoption of the standard had a material impact on the condensed consolidated balance sheet and related disclosures and resulted in recognition of right-of-use assets of $268 .2 .1 |
Net Sales (Policies)
Net Sales (Policies) | 3 Months Ended |
May 04, 2019 | |
Net Sales [Abstract] | |
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. |
Net Sales (Tables)
Net Sales (Tables) | 3 Months Ended |
May 04, 2019 | |
Net Sales [Abstract] | |
Reconciliation of Liabilities for Ollie's Army Loyalty Program and Gift Cards | Revenue is deferred for the Ollie’s Army loyalty program where members accumulate points that can be redeemed for discounts on future purchases. The Company has determined it has an additional performance obligation to Ollie’s Army members at the time of the initial transaction. The Company allocates the transaction price to the initial transaction and the discount awards based upon its relative standalone selling price, which considers historical redemption patterns for the award. Revenue is recognized as those discount awards are redeemed. Discount awards which are issued upon the achievement of specified point levels are valid for a maximum of 90 days from the date of issuance. At the end of each fiscal period, unredeemed discount awards and accumulated points to earn a future discount award are reflected as a liability. Discount awards are combined in one homogeneous pool and are not separately identifiable. Therefore, the revenue recognized consists of discount awards redeemed that were included in the deferred revenue balance at the beginning of the period as well as discount awards issued during the current period. The following table is a reconciliation of the liability related to this program (in thousands): Thirteen weeks ended May 4, 2019 May 5, 2018 Beginning Balance $ 9,055 $ 8,321 Revenue deferred 4,294 2,575 Revenue recognized (3,939 ) (2,364 ) Ending Balance $ 9,410 $ 8,532 Gift card breakage for gift card liabilities not subject to escheatment is recognized as revenue in proportion to the redemption of gift cards. 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 consists 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): Thirteen weeks ended May 4, 2019 May 5, 2018 Beginning Balance $ 1,448 $ 1,223 Gift card issuances 1,065 908 Gift card redemption and breakage (1,167 ) (990 ) Ending Balance $ 1,346 $ 1,141 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
May 04, 2019 | |
Earnings per Common Share [Abstract] | |
Earnings per Common Share | The following table summarizes those effects for the diluted earnings per common share calculation (in thousands, except per share amounts): Thirteen weeks ended May 4, 2019 May 5, 2018 Net income $ 38,717 $ 30,454 Weighted average number of common shares outstanding – Basic 63,188 62,169 Incremental shares from the assumed exercise of outstanding stock options and vesting of restricted stock units 2,988 3,455 Weighted average number of common shares outstanding - Diluted 66,176 65,624 Earnings per common share – Basic $ 0.61 $ 0.49 Earnings per common share - Diluted $ 0.59 $ 0.46 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
May 04, 2019 | |
Commitments and Contingencies [Abstract] | |
Maturity of Operating Lease Liabilities | The following table summarizes the maturity of the Company’s operating lease liabilities as of May 4, 2019 (in thousands): 2019 $ 46,911 2020 54,289 2021 52,737 2022 46,555 2023 41,559 Thereafter 72,751 Total undiscounted lease payments (1) 314,802 Less: Imputed interest (40,871 ) Total lease obligations 273,931 Less: Current obligations under leases (50,955 ) Long-term lease obligations $ 222,976 (1) Lease obligations exclude $31.8 million of minimum lease payments for leases signed, but not commenced. |
Other Information Related to Operating Leases | The following table summarizes other information related to the Company’s operating leases as of May 4, 2019: Cash paid for operating leases $ 15,307 Non-cash right-of-use assets obtained in exchange for lease obligations 17,613 Weighted-average remaining lease term 6 years Weighted-average discount rate 4.5 % |
Future Minimum Rental Payments Required under Non-cancelable Operating Leases | The Company adopted the new lease standard in the first quarter of 2019 as discussed in Note 1, and as required, the following disclosure is provided for periods prior to adoption. As of February 2, 2019, the following is a schedule by year of future minimum rental payments required under non-cancelable operating leases, including renewal periods that were reasonably assured and that had initial or remaining lease terms in excess of one year, excluding any payments related to insurance, taxes, or maintenance (in thousands): 2019 $ 60,804 2020 56,106 2021 49,226 2022 42,724 2023 34,876 Thereafter 65,218 Total minimum lease payments $ 308,954 |
Accrued Expenses and Other (Tab
Accrued Expenses and Other (Tables) | 3 Months Ended |
May 04, 2019 | |
Accrued Expenses and Other [Abstract] | |
Accrued Expenses and Other | Accrued expenses and other consists of the following (in thousands): May 4, 2019 May 5, 2018 February 2, 2019 Deferred revenue $ 10,756 $ 8,532 $ 10,503 Compensation and benefits 7,266 6,910 16,438 Insurance 6,831 3,918 6,159 Freight 6,216 4,434 4,496 Sales and use taxes 5,820 4,721 3,464 Real estate related 3,950 3,772 3,748 Advertising 3,821 3,339 5,678 Other 14,113 11,441 15,448 $ 58,773 $ 47,067 $ 65,934 |
Debt Obligations and Financin_2
Debt Obligations and Financing Arrangements (Tables) | 3 Months Ended |
May 04, 2019 | |
Debt Obligations and Financing Arrangements [Abstract] | |
Long-term Debt | Long-term debt consists of the following (in thousands): May 4, 2019 May 5, 2018 February 2, 2019 Term loan, net $ - $ 23,655 $ - Finance leases 610 414 679 Total debt 610 24,069 679 Less: current portion (197 ) (10,143 ) (238 ) Long-term debt $ 413 $ 13,926 $ 441 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 3 Months Ended |
May 04, 2019 | |
Equity Incentive Plans [Abstract] | |
Stock Option Activity | A summary of the Company’s stock option activity and related information follows for the thirteen weeks ended May 4, 2019 (in thousands, except share and per share amounts): Number of options Weighted average exercise price Weighted average remaining contractual term (years) Outstanding at February 2, 2019 3,746,422 $ 15.29 Granted 286,849 79.96 Forfeited (13,504 ) 64.25 Exercised (437,204 ) 13.91 Outstanding at May 4, 2019 3,582,563 20.46 5.4 Exercisable at May 4, 2019 2,435,065 10.83 4.3 |
Weighted Average Assumptions | The weighted average grant date fair value per option for options granted during the thirteen weeks ended May 4, 2019 and May 5, 2018 was $24.95 and $18.73, 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: Thirteen weeks ended May 4, 2019 May 5, 2018 Risk-free interest rate 2.43 % 2.70 % Expected dividend yield — — Expected term (years) 6.25 years 6.25 years Expected volatility 25.88 % 25.84 % |
RSU Activity | A summary of the Company’s RSU activity and related information for the thirteen weeks ended May 4, 2019 is as follows: Number of shares Weighted average grant date fair value Non-vested balance at February 2, 2019 220,200 $ 35.75 Granted 58,530 80.12 Forfeited (799 ) 75.90 Vested (56,360 ) 33.84 Non-vested balance at May 4, 2019 221,571 47.81 |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | ||
May 04, 2019USD ($)LocationStateSegment | Feb. 02, 2019USD ($) | May 05, 2018USD ($) | |
Organization and Summary of Significant Accounting Policies [Abstract] | |||
Number of retail locations | Location | 324 | ||
Number of states in which retail locations are located | State | 23 | ||
Number of operating segments | Segment | 1 | ||
Recently Adopted Accounting Pronouncements [Abstract] | |||
Right-of-use assets | $ 273,099 | $ 0 | $ 0 |
Lease liabilities | $ 273,931 | ||
Other assets | 6,900 | ||
Deferred rent and tenant improvement allowances | 9,500 | ||
Favorable Leases [Member] | |||
Recently Adopted Accounting Pronouncements [Abstract] | |||
Intangible assets | 1,700 | ||
ASU 2016-02 [Member] | |||
Recently Adopted Accounting Pronouncements [Abstract] | |||
Right-of-use assets | 268,200 | ||
Lease liabilities | $ 269,100 |
Net Sales (Details)
Net Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Ollie's Army Loyalty Program Liability [Abstract] | ||
Expiration period of discount awards from date of issuance | 90 days | |
Balance at beginning of period | $ 9,055 | $ 8,321 |
Revenue deferred | 4,294 | 2,575 |
Revenue recognized | (3,939) | (2,364) |
Balance at end of period | 9,410 | 8,532 |
Gift Card Liability [Abstract] | ||
Balance at beginning of period | 1,448 | 1,223 |
Gift card issuances | 1,065 | 908 |
Gift card redemption and breakage | (1,167) | (990) |
Balance at end of period | $ 1,346 | $ 1,141 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Earnings per Common Share [Abstract] | ||
Net income | $ 38,717 | $ 30,454 |
Weighted average number of common shares outstanding - Basic (in shares) | 63,188,000 | 62,169,000 |
Incremental shares from the assumed exercise of outstanding stock options and vesting of restricted stock units (in shares) | 2,988,000 | 3,455,000 |
Weighted average number of common shares outstanding - Diluted (in shares) | 66,176,000 | 65,624,000 |
Earnings per common share - Basic (in dollars per share) | $ 0.61 | $ 0.49 |
Earnings per common share - Diluted (in dollars per share) | $ 0.59 | $ 0.46 |
Stock Options [Member] | ||
Earnings per Common Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 145,684 | 124,738 |
Non-vested Restricted Stock Units [Member] | ||
Earnings per Common Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 29,127 | 26,333 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | |||
May 04, 2019USD ($)OptionLease | May 05, 2018USD ($) | Feb. 02, 2019USD ($) | ||
Commitments [Abstract] | ||||
Renewal term of leases | 5 years | |||
Lease cost for operating leases | $ 15,200 | $ 12,000 | ||
Maturity of Operating Lease Liabilities [Abstract] | ||||
2019 | 46,911 | |||
2020 | 54,289 | |||
2021 | 52,737 | |||
2022 | 46,555 | |||
2023 | 41,559 | |||
Thereafter | 72,751 | |||
Total undiscounted lease payments | [1] | 314,802 | ||
Less: Imputed interest | (40,871) | |||
Total lease obligations | 273,931 | |||
Less: Current obligations under leases | (50,955) | 0 | $ 0 | |
Long-term lease obligations | 222,976 | 0 | 0 | |
Minimum lease payments for leases signed, but not commenced | 31,800 | |||
Other Information Related to Operating Leases [Abstract] | ||||
Cash paid for operating leases | 15,307 | |||
Non-cash right-of-use assets obtained in exchange for lease obligations | $ 17,613 | |||
Weighted-average remaining lease term | 6 years | |||
Weighted-average discount rate | 4.50% | |||
Future Minimum Rental Payments Required under Non-cancelable Operating Leases [Abstract] | ||||
2019 | 60,804 | |||
2020 | 56,106 | |||
2021 | 49,226 | |||
2022 | 42,724 | |||
2023 | 34,876 | |||
Thereafter | 65,218 | |||
Total minimum lease payments | $ 308,954 | |||
Operating Leases for Office and Store Locations [Member] | ||||
Related Party Leases [Abstract] | ||||
Number of non-cancelable operating leases with related parties | Lease | 5 | |||
Payments to related parties | $ 300 | $ 400 | ||
Minimum [Member] | ||||
Commitments [Abstract] | ||||
Number of options to renew operating leases | Option | 3 | |||
Maximum [Member] | ||||
Commitments [Abstract] | ||||
Number of options to renew operating leases | Option | 5 | |||
[1] | Lease obligations exclude $31.8 million of minimum lease payments for leases signed, but not commenced. |
Accrued Expenses and Other (Det
Accrued Expenses and Other (Details) - USD ($) $ in Thousands | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Accrued Expenses and Other [Abstract] | |||
Deferred revenue | $ 10,756 | $ 10,503 | $ 8,532 |
Compensation and benefits | 7,266 | 16,438 | 6,910 |
Insurance | 6,831 | 6,159 | 3,918 |
Freight | 6,216 | 4,496 | 4,434 |
Sales and use taxes | 5,820 | 3,464 | 4,721 |
Real estate related | 3,950 | 3,748 | 3,772 |
Advertising | 3,821 | 5,678 | 3,339 |
Other | 14,113 | 15,448 | 11,441 |
Total accrued expenses and other | $ 58,773 | $ 65,934 | $ 47,067 |
Debt Obligations and Financin_3
Debt Obligations and Financing Arrangements, Long-term Debt (Details) - USD ($) $ in Thousands | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Debt Obligations and Financing Arrangements [Abstract] | |||
Term loan, net | $ 0 | $ 0 | $ 23,655 |
Finance leases | 610 | 679 | 414 |
Total debt | 610 | 679 | 24,069 |
Less: current portion | (197) | (238) | (10,143) |
Long-term debt | $ 413 | $ 441 | $ 13,926 |
Debt Obligations and Financin_4
Debt Obligations and Financing Arrangements, Credit Facilities (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
May 04, 2019USD ($) | Feb. 02, 2019USD ($) | |
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 | |
Repayment of debt | $ 48.8 | |
Revolving Credit Facility [Member] | ||
Debt Obligations and Financing Arrangements [Abstract] | ||
Maximum borrowing capacity | 100 | |
Outstanding borrowings | 0 | |
Borrowing availability | 98.1 | |
Letter of credit commitments | 1.6 | |
Rent reserves | $ 0.3 | |
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] | ||
Percentage of most recent appraised value of eligible inventory | 90.00% | |
Variable unused line fee percentage | 0.375% | |
Letters of Credit [Member] | ||
Debt Obligations and Financing Arrangements [Abstract] | ||
Maximum borrowing capacity | $ 25 | |
Swingline Loans [Member] | ||
Debt Obligations and Financing Arrangements [Abstract] | ||
Maximum borrowing capacity | $ 25 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Income Taxes [Abstract] | ||
Effective income tax rate | 5.40% | 13.80% |
Excess tax benefits related to stock-based compensation | $ (8.1) | $ (3.9) |
Equity Incentive Plans, Equity
Equity Incentive Plans, Equity Incentive Plans (Details) | 3 Months Ended |
May 04, 2019shares | |
2012 Plan [Member] | Stock Options [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting period | 5 years |
Expiration period | 10 years |
2012 Plan [Member] | Stock Options [Member] | Year 1 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 20.00% |
2012 Plan [Member] | Stock Options [Member] | Year 2 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 20.00% |
2012 Plan [Member] | Stock Options [Member] | Year 3 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 20.00% |
2012 Plan [Member] | Stock Options [Member] | Year 4 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 20.00% |
2012 Plan [Member] | Stock Options [Member] | Year 5 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 20.00% |
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) | 3,133,750 |
2015 Plan [Member] | Stock Options [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting period | 4 years |
Expiration period | 10 years |
2015 Plan [Member] | Stock Options [Member] | Year 1 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 25.00% |
2015 Plan [Member] | Stock Options [Member] | Year 2 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 25.00% |
2015 Plan [Member] | Stock Options [Member] | Year 3 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 25.00% |
2015 Plan [Member] | Stock Options [Member] | Year 4 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 25.00% |
Equity Incentive Plans, Stock O
Equity Incentive Plans, Stock Option Activity (Details) - Stock Options [Member] | 3 Months Ended |
May 04, 2019$ / sharesshares | |
Number of Options [Roll Forward] | |
Outstanding at beginning of period (in shares) | shares | 3,746,422 |
Granted (in shares) | shares | 286,849 |
Forfeited (in shares) | shares | (13,504) |
Exercised (in shares) | shares | (437,204) |
Outstanding at end of period (in shares) | shares | 3,582,563 |
Exercisable at end of period (in shares) | shares | 2,435,065 |
Weighted Average Exercise Price [Abstract] | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 15.29 |
Granted (in dollars per share) | $ / shares | 79.96 |
Forfeited (in dollars per share) | $ / shares | 64.25 |
Exercised (in dollars per share) | $ / shares | 13.91 |
Outstanding at end of period (in dollars per share) | $ / shares | 20.46 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 10.83 |
Weighted Average Remaining Contractual Term [Abstract] | |
Outstanding at end of period | 5 years 4 months 24 days |
Exercisable at end of period | 4 years 3 months 18 days |
Equity Incentive Plans, Weighte
Equity Incentive Plans, Weighted Average Assumptions (Details) - $ / shares | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Equity Incentive Plans [Abstract] | ||
Weighted average grant date fair value per option granted (in dollars per share) | $ 24.95 | $ 18.73 |
Risk-free interest rate | 2.43% | 2.70% |
Expected dividend yield | 0.00% | 0.00% |
Expected term | 6 years 3 months | 6 years 3 months |
Expected volatility | 25.88% | 25.84% |
Equity Incentive Plans, RSU Act
Equity Incentive Plans, RSU Activity (Details) - Restricted Stock Units [Member] | 3 Months Ended |
May 04, 2019$ / sharesshares | |
Number of Shares [Roll Forward] | |
Non-vested at beginning of period (in shares) | shares | 220,200 |
Granted (in shares) | shares | 58,530 |
Forfeited (in shares) | shares | (799) |
Vested (in shares) | shares | (56,360) |
Non-vested at end of period (in shares) | shares | 221,571 |
Weighted Average Grant Date Fair Value [Abstract] | |
Non-vested at beginning of period (in dollars per share) | $ / shares | $ 35.75 |
Granted (in dollars per share) | $ / shares | 80.12 |
Forfeited (in dollars per share) | $ / shares | 75.90 |
Vested (in dollars per share) | $ / shares | 33.84 |
Non-vested at end of period (in dollars per share) | $ / shares | $ 47.81 |
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 | |
May 04, 2019 | May 05, 2018 | |
Stock-Based Compensation Expense [Abstract] | ||
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 22.4 | |
Weighted average period to recognize stock-based compensation expense | 3 years | |
Selling, General and Administrative Expenses [Member] | ||
Stock-Based Compensation Expense [Abstract] | ||
Compensation expense | $ 2.2 | $ 1.6 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | May 31, 2019USD ($) | May 22, 2019USD ($) | May 04, 2019USD ($) | May 05, 2018USD ($) | Aug. 29, 2018Store |
Subsequent Events [Abstract] | |||||
Proceeds from sale of property and equipment | $ 16 | $ 11 | |||
OBO [Member] | |||||
Subsequent Events [Abstract] | |||||
Number of Toys "R" Us store sites acquired | Store | 12 | ||||
Subsequent Event [Member] | OBO [Member] | |||||
Subsequent Events [Abstract] | |||||
Proceeds from sale of property and equipment | $ 42,000 | ||||
Subsequent Event [Member] | Credit Agreement [Member] | |||||
Subsequent Events [Abstract] | |||||
Maximum borrowing capacity | $ 150,000 | ||||
Subsequent Event [Member] | New Revolving Credit Facility [Member] | |||||
Subsequent Events [Abstract] | |||||
Term of facility | 5 years | ||||
Maximum borrowing capacity | $ 100,000 | ||||
Maturity date | May 22, 2024 | ||||
Subsequent Event [Member] | Letters of Credit [Member] | |||||
Subsequent Events [Abstract] | |||||
Maximum borrowing capacity | $ 45,000 | ||||
Subsequent Event [Member] | Swingline Loans [Member] | |||||
Subsequent Events [Abstract] | |||||
Maximum borrowing capacity | $ 25,000 |