Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 28, 2023 | Dec. 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 28, 2023 | |
Current Fiscal Year End Date | --02-03 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Transition Report | false | |
Entity Registrant Name | Ollie’s Bargain Outlet Holdings, Inc. | |
Entity Central Index Key | 0001639300 | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-37501 | |
Entity Tax Identification Number | 80-0848819 | |
Entity Address, Address Line One | 6295 Allentown Boulevard | |
Entity Address, Address Line Two | Suite 1 | |
Entity Address, City or Town | Harrisburg | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 17112 | |
City Area Code | 717 | |
Local Phone Number | 657-2300 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | OLLI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 61,592,272 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Condensed Consolidated Statements of Income [Abstract] | ||||
Net sales | $ 480,050 | $ 418,072 | $ 1,453,713 | $ 1,277,220 |
Cost of sales | 285,939 | 253,396 | 884,347 | 827,609 |
Gross profit | 194,111 | 164,676 | 569,366 | 449,611 |
Selling, general, and administrative expenses | 141,684 | 124,810 | 406,575 | 359,549 |
Depreciation and amortization expenses | 7,065 | 5,872 | 20,203 | 16,698 |
Pre-opening expenses | 6,293 | 4,462 | 12,443 | 10,142 |
Operating income | 39,069 | 29,532 | 130,145 | 63,222 |
Interest income, net | (3,977) | (866) | (10,054) | (880) |
Income before income taxes | 43,046 | 30,398 | 140,199 | 64,102 |
Income tax expense | 11,243 | 7,316 | 35,235 | 14,400 |
Net income | $ 31,803 | $ 23,082 | $ 104,964 | $ 49,702 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.52 | $ 0.37 | $ 1.7 | $ 0.79 |
Diluted (in dollars per share) | $ 0.51 | $ 0.37 | $ 1.69 | $ 0.79 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 61,682 | 62,507 | 61,807 | 62,603 |
Diluted (in shares) | 62,068 | 62,751 | 62,110 | 62,810 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Current assets: | |||
Cash and cash equivalents | $ 159,555 | $ 210,596 | $ 182,104 |
Short-term investments | 104,477 | 60,165 | 0 |
Inventories | 532,370 | 470,534 | 523,728 |
Accounts receivable | 1,973 | 2,374 | 1,363 |
Prepaid expenses and other current assets | 7,184 | 10,627 | 7,157 |
Total current assets | 805,559 | 754,296 | 714,352 |
Property and equipment, net of accumulated depreciation of $174,569, $150,386 and $142,789, respectively | 230,203 | 175,947 | 170,133 |
Operating lease right-of-use assets | 481,124 | 436,326 | 447,922 |
Goodwill | 444,850 | 444,850 | 444,850 |
Trade name | 230,559 | 230,559 | 230,559 |
Other assets | 2,065 | 2,118 | 2,152 |
Total assets | 2,194,360 | 2,044,096 | 2,009,968 |
Current liabilities: | |||
Current portion of long-term debt | 554 | 430 | 445 |
Accounts payable | 105,440 | 90,204 | 83,210 |
Income taxes payable | 592 | 3,056 | 0 |
Current portion of operating lease liabilities | 94,899 | 88,636 | 81,589 |
Accrued expenses and other current liabilities | 87,618 | 76,959 | 86,949 |
Total current liabilities | 289,103 | 259,285 | 252,193 |
Revolving credit facility | 0 | 0 | 0 |
Long-term debt | 957 | 858 | 1,006 |
Deferred income taxes | 70,899 | 70,632 | 65,418 |
Long-term portion of operating lease liabilities | 393,027 | 351,251 | 373,228 |
Other long-term liabilities | 0 | 1 | 1 |
Total liabilities | 753,986 | 682,027 | 691,846 |
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; 66,896, 66,672 and 66,665 shares issued, respectively | 67 | 67 | 67 |
Additional paid-in capital | 690,842 | 677,694 | 674,958 |
Retained earnings | 1,091,476 | 986,512 | 933,424 |
Treasury - common stock, at cost; 5,299, 4,664 and 4,418 shares, respectively | (342,011) | (302,204) | (290,327) |
Total stockholders' equity | 1,440,374 | 1,362,069 | 1,318,122 |
Total liabilities and stockholders' equity | $ 2,194,360 | $ 2,044,096 | $ 2,009,968 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Assets | |||
Property and equipment, accumulated depreciation | $ 174,569 | $ 150,386 | $ 142,789 |
Stockholders' equity: | |||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 |
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) | 500,000,000 | 500,000,000 | 500,000,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares issued (in shares) | 66,896,000 | 66,672,000 | 66,665,000 |
Treasury - common stock (in shares) | 5,299,000 | 4,664,000 | 4,418,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - 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. 29, 2022 | $ 67 | $ (260,372) | $ 664,293 | $ 883,722 | $ 1,287,710 |
Beginning balance (in shares) at Jan. 29, 2022 | 66,516 | ||||
Beginning balance (in shares) at Jan. 29, 2022 | (3,816) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | $ 0 | $ 0 | 7,313 | 0 | 7,313 |
Proceeds from stock options exercised | $ 0 | $ 0 | 3,866 | 0 | 3,866 |
Proceeds from stock options exercised (in shares) | 115 | 0 | |||
Vesting of restricted stock | $ 0 | $ 0 | 0 | 0 | 0 |
Vesting of restricted stock (in shares) | 45 | 0 | |||
Common shares withheld for taxes | $ 0 | $ 0 | (514) | 0 | (514) |
Common shares withheld for taxes (in shares) | (11) | 0 | |||
Shares repurchased | $ 0 | $ (29,955) | 0 | 0 | (29,955) |
Shares repurchased (in shares) | 0 | (602) | |||
Net income | $ 0 | $ 0 | 0 | 49,702 | 49,702 |
Ending balance at Oct. 29, 2022 | $ 67 | $ (290,327) | 674,958 | 933,424 | $ 1,318,122 |
Ending balance (in shares) at Oct. 29, 2022 | 66,665 | ||||
Ending balance (in shares) at Oct. 29, 2022 | (4,418) | (4,418) | |||
Beginning balance at Jul. 30, 2022 | $ 67 | $ (270,323) | 672,107 | 910,342 | $ 1,312,193 |
Beginning balance (in shares) at Jul. 30, 2022 | 66,652 | ||||
Beginning balance (in shares) at Jul. 30, 2022 | (4,054) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | $ 0 | $ 0 | 2,590 | 0 | 2,590 |
Proceeds from stock options exercised | $ 0 | $ 0 | 273 | 0 | 273 |
Proceeds from stock options exercised (in shares) | 12 | 0 | |||
Vesting of restricted stock | $ 0 | $ 0 | 0 | 0 | 0 |
Vesting of restricted stock (in shares) | 1 | 0 | |||
Common shares withheld for taxes | $ 0 | $ 0 | (12) | 0 | (12) |
Common shares withheld for taxes (in shares) | 0 | 0 | |||
Shares repurchased | $ 0 | $ (20,004) | 0 | 0 | (20,004) |
Shares repurchased (in shares) | 0 | (364) | |||
Net income | $ 0 | $ 0 | 0 | 23,082 | 23,082 |
Ending balance at Oct. 29, 2022 | $ 67 | $ (290,327) | 674,958 | 933,424 | $ 1,318,122 |
Ending balance (in shares) at Oct. 29, 2022 | 66,665 | ||||
Ending balance (in shares) at Oct. 29, 2022 | (4,418) | (4,418) | |||
Beginning balance at Jan. 28, 2023 | $ 67 | $ (302,204) | 677,694 | 986,512 | $ 1,362,069 |
Beginning balance (in shares) at Jan. 28, 2023 | 66,672 | ||||
Beginning balance (in shares) at Jan. 28, 2023 | (4,664) | (4,664) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | $ 0 | $ 0 | 9,008 | 0 | $ 9,008 |
Proceeds from stock options exercised | $ 0 | $ 0 | 5,601 | 0 | 5,601 |
Proceeds from stock options exercised (in shares) | 153 | 0 | |||
Vesting of restricted stock | $ 0 | $ 0 | 0 | 0 | 0 |
Vesting of restricted stock (in shares) | 96 | 0 | |||
Common shares withheld for taxes | $ 0 | $ 0 | (1,461) | 0 | (1,461) |
Common shares withheld for taxes (in shares) | (25) | 0 | |||
Shares repurchased | $ 0 | $ (39,807) | 0 | 0 | (39,807) |
Shares repurchased (in shares) | 0 | (635) | |||
Net income | $ 0 | $ 0 | 0 | 104,964 | 104,964 |
Ending balance at Oct. 28, 2023 | $ 67 | $ (342,011) | 690,842 | 1,091,476 | $ 1,440,374 |
Ending balance (in shares) at Oct. 28, 2023 | 66,896 | ||||
Ending balance (in shares) at Oct. 28, 2023 | (5,299) | (5,299) | |||
Beginning balance at Jul. 29, 2023 | $ 67 | $ (331,198) | 686,438 | 1,059,673 | $ 1,414,980 |
Beginning balance (in shares) at Jul. 29, 2023 | 66,858 | ||||
Beginning balance (in shares) at Jul. 29, 2023 | (5,156) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | $ 0 | $ 0 | 3,004 | 0 | 3,004 |
Proceeds from stock options exercised | $ 0 | $ 0 | 1,464 | 0 | 1,464 |
Proceeds from stock options exercised (in shares) | 36 | 0 | |||
Vesting of restricted stock | $ 0 | $ 0 | 0 | 0 | 0 |
Vesting of restricted stock (in shares) | 3 | 0 | |||
Common shares withheld for taxes | $ 0 | $ 0 | (64) | 0 | (64) |
Common shares withheld for taxes (in shares) | (1) | 0 | |||
Shares repurchased | $ 0 | $ (10,813) | 0 | 0 | (10,813) |
Shares repurchased (in shares) | 0 | (143) | |||
Net income | $ 0 | $ 0 | 0 | 31,803 | 31,803 |
Ending balance at Oct. 28, 2023 | $ 67 | $ (342,011) | $ 690,842 | $ 1,091,476 | $ 1,440,374 |
Ending balance (in shares) at Oct. 28, 2023 | 66,896 | ||||
Ending balance (in shares) at Oct. 28, 2023 | (5,299) | (5,299) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Cash Flows from Operating Activities: | ||
Net income | $ 104,964 | $ 49,702 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 25,272 | 20,964 |
Amortization of debt issuance costs | 207 | 192 |
Gain on sale of assets | (304) | (280) |
Deferred income tax provision | 267 | (761) |
Stock-based compensation expense | 9,008 | 7,313 |
Changes in operating assets and liabilities: | ||
Inventories | (61,836) | (56,422) |
Accounts receivable | 478 | 9 |
Prepaid expenses and other assets | 3,289 | 3,875 |
Accounts payable | 18,942 | (24,050) |
Income taxes payable | (2,464) | (2,556) |
Accrued expenses and other liabilities | 13,038 | 2,993 |
Net cash provided by operating activities | 110,861 | 979 |
Cash Flows from Investing Activities: | ||
Purchases of property and equipment | (81,375) | (38,937) |
Proceeds from sale of property and equipment | 386 | 311 |
Purchases of short-term investments | (206,828) | 0 |
Maturities of short-term investments | 162,516 | 0 |
Net cash used in investing activities | (125,301) | (38,626) |
Cash Flows from Financing Activities: | ||
Repayments on finance leases | (857) | (623) |
Proceeds from stock option exercises | 5,524 | 3,866 |
Common shares withheld for taxes | (1,461) | (514) |
Payment for shares repurchased | (39,807) | (29,955) |
Net cash used in financing activities | (36,601) | (27,226) |
Net decrease in cash and cash equivalents | (51,041) | (64,873) |
Cash and cash equivalents, beginning of the period | 210,596 | 246,977 |
Cash and cash equivalents, end of the period | 159,555 | 182,104 |
Cash paid during the period for: | ||
Interest | 321 | 286 |
Income taxes | 37,452 | 19,012 |
Non-cash investing activities: | ||
Accrued purchases of property and equipment | 5,073 | 7,192 |
Non-cash financing activities | ||
Receivable from exercise of stock options | $ 77 | $ 0 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 28, 2023 | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | (1) Basis of Presentation and Summary of Significant Accounting Policies (a) Description of Business Ollie’s Bargain Outlet Holdings, Inc. and subsidiaries (collectively referred 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 505 retail locations in 30 states as of October 28, 2023. Ollie’s Bargain Outlet retail locations are located in Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Vermont, 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 st of the following calendar year. References to the thirteen weeks ended October 28, 2023 and October 29, 2022 refer to the thirteen weeks from July 30, 2023 to October 28, 2023 and from July 31, 2022 to October 29, 2022, respectively. References to the year-to-date periods ended October 28, 2023 and October 29, 2022 refer to the thirty-nine weeks from January 29, 2023 to October 28, 2023 and from January 30, 2022 to October 29, 2022, respectively (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 . The Company’s balance sheet as of January 28, 2023, 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 24, 2023 (“Annual Report”), but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the financial statements for 2022 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 that are observable or can be corroborated by observable market data. • Level 3 inputs are unobservable, developed using the Company’s estimates and assumptions, which reflect those that market participants would use. The Company’s financial instruments consist of cash and cash equivalents, investment securities, accounts receivable, accounts payable and the Company’s credit facilities. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable are representative of their respective fair value because of their short-term nature. 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. Under the fair value hierarchy, the fair market values of cash equivalents and the investments in treasury bonds are Level 1 while the investments in municipal bonds are Level 2. Since quoted prices in active markets for identical assets are not available, these prices are determined by the third-party pricing service using observable market information such as quotes from less active markets and quoted prices of similar securities As of October 28, 2023 and January 28, 2023, the Company’s investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following: As of October 28, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (in thousands) Short-term: Treasury Bonds $ 69,497 $ - $ (833 ) $ 68,664 Municipal bonds 34,980 - (422 ) 34,558 Total $ 104,477 $ - $ (1,255 ) $ 103,222 As of J anuary Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (in thousands) Short-term: Treasury Bonds $ 55,274 $ - $ (83 ) $ 55,191 Municipal bonds 4,891 - (8 ) 4,883 Total $ 60,165 $ - $ (91 ) $ 60,074 Short-term investment securities as of October 28, 2023 and January 28, 2023 all mature in one year or less. |
Net Sales
Net Sales | 9 Months Ended |
Oct. 28, 2023 | |
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 issued upon the achievement of specified point levels are subject to expiration. . 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: Thirty-nine weeks ended October 28, October 29, 2023 2022 (in thousands) Beginning balance $ 8,130 $ 7,782 Revenue deferred 11,171 10,775 Revenue recognized (9,865 ) (10,786 ) Ending balance $ 9,436 $ 7,771 Gift card breakage for gift card liabilities not subject to escheatment is recognized as revenue in proportion to the redemption of gift cards. 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 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: Thirty-nine weeks ended October 28 October 29, 2023 2022 (in thousands) Beginning balance $ 2,527 $ 2,291 Gift card issuances 3,097 3,112 Gift card redemption and breakage (3,271 ) (3,214 ) Ending balance $ 2,353 $ 2,189 |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Oct. 28, 2023 | |
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: Thirteen weeks ended Thirty-nine weeks ended October 28, October 29 October 28, October 29 2023 2022 2023 2022 (in thousands, except per share amounts) Net income $ 31,803 $ 23,082 $ 104,964 $ 49,702 Weighted average number of common shares outstanding - Basic 61,682 62,507 61,807 62,603 Incremental shares from the assumed exercise of outstanding stock options and vesting of restricted stock units 386 244 303 207 Weighted average number of common shares outstanding - Diluted 62,068 62,751 62,110 62,810 Earnings per common share - Basic $ 0.52 $ 0.37 $ 1.70 $ 0.79 Earnings per common share - Diluted $ 0.51 $ 0.37 $ 1.69 $ 0.79 The effect of the weighted average assumed exercise of stock options outstanding totaling 491,766 and 791,256 for the thirteen weeks ended October 28, 2023 and October 29, 2022, respectively, and 616,304 and 879,134 for the thirty-nine weeks ended October 28, 2023 and October 29, 2022, 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 570 and 43,159 for the thirteen weeks ended October 28, 2023 and October 29, 2022, respectively, and 15,569 and 41,427 for the thirty-nine weeks ended October 28, 2023 and October 29, 2022, respectively, were excluded from the calculation of diluted weighted average common shares outstanding because the effect would have been antidilutive . |
Leases
Leases | 9 Months Ended |
Oct. 28, 2023 | |
Leases [Abstract] | |
Leases | (4) Leases Effective February 3, 2019, the Company accounts for its leases under ASC 842, Leases (Topic 842). Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the balance sheet as both a right-of-use asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease, if available. The Company’s lessors do not provide an implicit rate, nor is one readily available, therefore the Company uses its incremental borrowing rate based on the portfolio approach, which applies one rate to leases within a given period. Lease liabilities are increased by interest and reduced by payments each period, and the right-of-use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right-of-use asset result in straight-line rent expense over the lease term. Variable lease expenses, if any, are recorded when incurred. In calculating the right-of-use asset and lease liability, the Company elects to combine lease and non-lease components. The Company excludes short-term leases having initial terms of 12 months or less from the guidance as an accounting policy election and recognizes rent expense on a straight-line basis over the lease term. The Company does not act as a lessor. Ollie’s generally leases its stores, offices, and distribution facilities under operating leases that expire at various dates through 2035 These leases generally provide for fixed annual rentals; however, several provide for minimum annual rentals plus contingent rentals based on a of annual sales. A majority of the Company’s leases also require a payment for all or a portion of common-area maintenance, insurance, real estate taxes, water and sewer costs, and repairs, on a fixed or variable payment basis, the cost of which, for leases existing as of the adoption of ASC 842 is charged to the related expense category rather than being accounted for as rent expense. For leases entered into after the adoption of ASC 842 the Company accounts for lease components together with non-lease components as a single component for all classes of underlying assets. Most of the leases contain options to renew for to successive periods. The Company is generally not reasonably certain to exercise renewal options; therefore, the options are not considered in determining the lease term, and associated potential option payments are excluded from the lease payments. Ollie’s lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. Store and office lease costs are classified in selling, general, and administrative expenses and distribution center lease costs are classified in cost of sales on the condensed consolidated statements of income. The following table summarizes the maturity of the Company’s operating lease liabilities by fiscal year as of October 28, 2023: October 28, 2023 (in thousands) Remainder of 2023 $ 21,213 2024 108,250 2025 89,975 2026 85,204 2027 73,050 Thereafter 180,155 Total undiscounted lease payments (1) 557,847 Less: Imputed interest (69,921 ) Total lease obligations 487,926 Less: Current obligations under leases (94,899 ) Long-term lease obligations $ 393,027 (1) Lease obligations exclude 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 and for the respective periods: Thirty-nine weeks ended October 28, October 29, 2023 2022 (dollars in thousands) Cash paid for operating leases $ 77,630 $ 70,157 Operating lease cost 77,100 70,656 Variable lease cost 9,182 7,649 Non-cash right-of-use assets obtained in exchange for lease obligations 52,108 48,083 Weighted-average remaining lease term 6.6 years 6.5 Weighted-average discount rate 3.8 % 3.4 % |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 28, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | (5) Commitments and Contingencies Contingencies Legal Matters 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 Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Oct. 28, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | (6) Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consists of the following: October 28, January 28, October 29, 2023 2023 2022 (in thousands) Compensation and benefits $ 18,359 $ 14,751 $ 16,047 Deferred revenue 11,789 10,657 9,960 Insurance 11,316 9,141 11,209 Sales and use taxes 10,833 6,567 9,860 Advertising 6,959 6,582 7,247 Real estate 6,025 6,283 8,124 Freight 2,885 2,641 3,585 Other 19,452 20,337 20,917 $ 87,618 $ 76,959 $ 86,949 |
Debt Obligations and Financing
Debt Obligations and Financing Arrangements | 9 Months Ended |
Oct. 28, 2023 | |
Debt Obligations and Financing Arrangements [Abstract] | |
Debt Obligations and Financing Arrangements | (7) Debt Obligations and Financing Arrangements Long-term debt consists of finance leases. The Company’s credit facility (the “Credit Facility”) 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 “Revolving Credit Facility”). Loans under the Revolving Credit Facility mature on May 22, 2024. In addition, the Company may at any time add term loan facilities or additional revolving commitments up to $150.0 million pursuant to terms and conditions set out in the Credit Facility. As a result of the anticipated discontinuation of LIBOR in 2023, on January 24, 2023, the Company amended its Credit Facility to replace the LIBOR-based interest rates included therein with SOFR-based interest rates and to modify the provisions for determining an alternative rate of interest upon the occurrence of certain events relating to the availability of interest rate benchmarks. The interest rates for the Credit Facility are calculated as follows: for ABR Loans, the highest of the Prime Rate, the Federal Funds Effective Rate plus 0.50% and Term SOFR with a term of one-month in effect on such day plus the SOFR Spread Adjustment plus 1.0%, plus the Applicable Margin, or, for SOFR Loans, the SOFR Loan Rate plus the Applicable Margin plus the SOFR Spread Adjustment. The Applicable Margin will vary from 0.00% to 0.50% for an ABR Loan and 1.00% to 1.50% for a SOFR Loan, based on availability under the Credit Facility. The SOFR Loan Rate is subject to a 0% floor. Under the terms of the Revolving Credit Facility, as of October 28, 2023, 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 October 28, 2023, the Company had no outstanding borrowings under the Revolving Credit Facility, with $91.8 million of borrowing availability, outstanding letters of credit commitments of $7.9 million and $0.2 million of rent reserves. The Revolving Credit Facility also contains a variable unused line fee ranging from 0.125% to 0.250% per annum. The Credit Facility is collateralized by the Company’s assets and equity and contains a financial covenant, as well as certain business covenants, including restrictions on dividend payments, which the Company must comply with during the term of the agreement. The financial covenant is a consolidated fixed charge coverage ratio test of at least 1.0 to 1.0 applicable during a covenant period, based on reference to availability. The Company was in compliance with all terms of the Credit Facility during the thirty-nine weeks ended October 28, 2023. The provisions of the Credit Facility 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 October 28, 2023, 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 Facility, subject to material exceptions including pro forma compliance with the applicable conditions described in the Credit Facility. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 28, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | (8) Income Taxes The effective tax rates for the thirteen weeks ended October 28, 2023 and October 29, 2022 were 26.1% and 24.1%, respectively. The increase in the effective tax rates in the thirteen weeks ended October 28, 2023 was primarily due to a decrease in discrete tax benefits related to stock-based compensation, a decrease in tax credits, and state tax rate changes. Discrete tax expense totaled $0.1 million in the thirteen weeks ended October 28, 2023 compared to discrete tax benefits of $0.2 million in the thirteen weeks ended October 29, 2022. The effective tax rates for the thirty-nine weeks ended October 28, 2023 and October 29, 2022 were 25.1% and 22.5%, respectively. The increase in the effective tax rate in the thirty-nine weeks ended October 28, 2023 was primarily due to a decrease in discrete tax benefits related to stock-based compensation and state tax rate changes. Discrete tax benefits totaled $0.7 million in the thirty-nine weeks ended October 28, 2023 compared to discrete tax benefits of $1.5 million in the thirty-nine weeks ended October 29, 2022. T he Company is subject to tax in the United States. The Company files a consolidated U.S. income tax return for federal income tax purposes. The Company is no longer subject to income tax examinations by U.S. federal, or state and local tax authorities for tax years 2017 and prior. |
Equity Incentive Plans
Equity Incentive Plans | 9 Months Ended |
Oct. 28, 2023 | |
Equity Incentive Plans [Abstract] | |
Equity Incentive Plans | (9) Equity Incentive Plans During fiscal 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 October 28 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 for the thirty-nine October 28 Weighted Weighted average average remaining Number exercise contractual of options price term (years) Outstanding at January 28 2023 1,209,251 $ 53.92 Granted 144,630 57.91 Forfeited (47,380 ) 61.10 Exercised (152,583 ) 36.71 Outstanding at October 28 2023 1,153,918 56.40 6.9 Exercisable at October 28 2023 596,980 56.94 5.7 The weighted average grant date fair value per option for options granted during the thirty-nine October 28 29 Thirty-nine weeks ended October 28, October 29, 2023 2022 Risk-free interest rate 3.36 % 2.63 % Expected dividend yield - - Expected life (years) 6.25 6.25 years Expected volatility 47.16 % 44.40 % The expected life of stock options is 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 expected volatility, the Company uses its historical information over the expected life of the option granted 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. Restricted Stock Units Restricted stock units (“RSUs”) are issued at the closing price of the Company’s common stock on the date of grant. RSUs outstanding vest ratably over four years or cliff vest in one A summary of the Company’s RSU activity and related information for the thirty-nine October 28 Weighted average Number grant date of shares fair value Non-vested balance at January 28 2023 276,278 $ 50.32 Granted 202,909 58.05 Forfeited (24,804 ) 52.90 Vested (96,226 ) 52.16 Non-vested balance at October 28 2023 358,157 54.02 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 $ million and $ million for the thirteen weeks ended October 28 October 29 million and $ million for the thirty-nine October 28 and October 29 As of October 28 , 2023 |
Common Stock
Common Stock | 9 Months Ended |
Oct. 28, 2023 | |
Common Stock [Abstract] | |
Common Stock | (10) Common Stock Common Stock The Company’s capital structure consists of a single class of common stock with one vote per share. The Company has authorized 500,000,000 shares at $0.001 par value per share. Additionally, the Company has authorized 50,000,000 shares of preferred stock at $0.001 per value per share; to date, however, no preferred shares have been issued. Treasury stock, which consists of the Company’s common stock, is accounted for using the cost method. Share Repurchase Program On December 15, 2020, the Board of Directors of the Company authorized the repurchase of up to $100.0 million of shares of the Company’s common stock. On March 16, 2021, the Board of Directors of the Company authorized an increase of $100.0 million in the Company’s share repurchase program. Both of these authorizations were authorized to be executed through January 2023. On November 30, 2021, the Board authorized an additional $200.0 million to repurchase stock pursuant to the Company’s share repurchase program, expiring on December 15, 2023. Shares under both authorizations may be purchased from time to time in open market transactions (including blocks), privately negotiated transactions, accelerated share repurchase programs or other derivative transactions, issuer self-tender offers, or any combination of the foregoing. The timing of repurchases and the actual amount purchased will depend on a variety of factors, including the market price of the Company’s shares, general market, economic and business conditions, and other corporate considerations. In addition, the authorizations are subject to extension or earlier termination by the Board of Directors at any time. During the thirty-nine October 28, |
Transactions with Affiliated an
Transactions with Affiliated and Related Parties | 9 Months Ended |
Oct. 28, 2023 | |
Transactions with Affiliated and Related Parties [Abstract] | |
Transactions with Affiliated and Related Parties | (11) Transactions with Affiliated and Related Parties During the thirty-nine weeks ended October 28, 2023 and October 29, 2022, respectively, the Company purchased inventory of $1.2 million and $0.5 million from a subsidiary of Hillman Solutions, Inc. where John Swygert, President and Chief Executive Officer of Ollie’s, is a member of its Board of Directors. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 28, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | (12) Subsequent Events On November 30, 2023, the Company’s Board of Directors authorized an extension to the existing share repurchase buyback program set to expire on December 15, 2023, extended to March 31, 2026. The plan is subject to extension or earlier termination by the Board at any time |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Oct. 28, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | During the thirteen weeks ended October 28, 2023, our executives entered into or modified written plans for the purchase or sale of our securities through a broker that are intended to satisfy the conditions specified in Rule 10b5-1(c) under the Exchange Act for an affirmative defense against liability for trading in securities on the basis of material nonpublic information. The material terms of these trading plans are set forth in the table below. Director/Officer Action & Commencement of Trading Period Scheduled Termination of Trading Period (1) Security Covered Maximum Number of Securities to be Purchased or Sold Pursuant to the Rule 10b5-1 Trading Plan (2) Covers Purchase or Sale? Robert Helm Senior Vice President and Chief Financial Officer Modification September 13, 2023 December 13, 2023 March 31, 2025 Common Stock 6,959 (3) Sale John Swygert President and Chief Executive Officer Adoption October 2, 2023 January 2, 2024 October 2, 2024 Common Stock 44,688 (3) Sale Eric van der Valk Executive Vice President and Chief Operating Officer Adoption September 15, 2023 December 15, 2023 September 16, 2024 Common Stock 12,061 (3) Sale Larry Kraus Vice President and Chief Information Officer Adoption September 8, 2023 December 8, 2023 December 8, 2024 Common Stock 13,829 Sale Kevin McLain Senior Vice President and General Merchandise Manager Adoption September 1, 2023 December 1, 2023 September 1, 2024 Common Stock 11,540 Sale (1) The plan is subject to earlier termination under certain circumstances specified in the plans, including upon the sale of all shares subject to the plan and upon either party to a plan giving notice of termination within the time prescribed under the plan. (2) Subject to adjustments for stock splits, stock combinations, stock dividends and other similar changes to our common stock. (3) The actual number of shares subject to be sold under the Rule 10b5-1 trading arrangement will be net of the number of shares withheld to satisfy certain costs and tax withholding obligations arising from the vesting of such awards and is not yet determinable. |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Sale Modification [Member] | Robert Helm [Member] | |
Trading Arrangements, by Individual | |
Name | Robert Helm |
Title | Senior Vice President and Chief Financial Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | September 13, 2023 |
Arrangement Duration | 474 days |
Aggregate Available | 6,959 |
Sale [Member] | John Swygert [Member] | |
Trading Arrangements, by Individual | |
Name | John Swygert |
Title | President and Chief Executive Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | October 2, 2023 |
Arrangement Duration | 274 days |
Aggregate Available | 44,688 |
Sale [Member] | Eric van der Valk [Member] | |
Trading Arrangements, by Individual | |
Name | Eric van der Valk |
Title | Executive Vice President and Chief Operating Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | September 15, 2023 |
Arrangement Duration | 276 days |
Aggregate Available | 12,061 |
Sale [Member] | Larry Kraus [Member] | |
Trading Arrangements, by Individual | |
Name | Larry Kraus |
Title | Vice President and Chief Information Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | September 8, 2023 |
Arrangement Duration | 366 days |
Aggregate Available | 13,829 |
Sale [Member] | Kevin McLain [Member] | |
Trading Arrangements, by Individual | |
Name | Kevin McLain |
Title | Senior Vice President and General Merchandise Manager |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | September 1, 2023 |
Arrangement Duration | 275 days |
Aggregate Available | 11,540 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 28, 2023 | |
Basis of Presentation 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 st of the following calendar year. References to the thirteen weeks ended October 28, 2023 and October 29, 2022 refer to the thirteen weeks from July 30, 2023 to October 28, 2023 and from July 31, 2022 to October 29, 2022, respectively. References to the year-to-date periods ended October 28, 2023 and October 29, 2022 refer to the thirty-nine weeks from January 29, 2023 to October 28, 2023 and from January 30, 2022 to October 29, 2022, respectively |
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 . The Company’s balance sheet as of January 28, 2023, 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 24, 2023 (“Annual Report”), but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the financial statements for 2022 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 that are observable or can be corroborated by observable market data. • Level 3 inputs are unobservable, developed using the Company’s estimates and assumptions, which reflect those that market participants would use. The Company’s financial instruments consist of cash and cash equivalents, investment securities, accounts receivable, accounts payable and the Company’s credit facilities. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable are representative of their respective fair value because of their short-term nature. 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. Under the fair value hierarchy, the fair market values of cash equivalents and the investments in treasury bonds are Level 1 while the investments in municipal bonds are Level 2. Since quoted prices in active markets for identical assets are not available, these prices are determined by the third-party pricing service using observable market information such as quotes from less active markets and quoted prices of similar securities As of October 28, 2023 and January 28, 2023, the Company’s investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following: As of October 28, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (in thousands) Short-term: Treasury Bonds $ 69,497 $ - $ (833 ) $ 68,664 Municipal bonds 34,980 - (422 ) 34,558 Total $ 104,477 $ - $ (1,255 ) $ 103,222 As of J anuary Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (in thousands) Short-term: Treasury Bonds $ 55,274 $ - $ (83 ) $ 55,191 Municipal bonds 4,891 - (8 ) 4,883 Total $ 60,165 $ - $ (91 ) $ 60,074 Short-term investment securities as of October 28, 2023 and January 28, 2023 all mature in one year or less. |
Net Sales (Policies)
Net Sales (Policies) | 9 Months Ended |
Oct. 28, 2023 | |
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. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Held-to-Maturity Investment Securities | As of October 28, 2023 and January 28, 2023, the Company’s investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following: As of October 28, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (in thousands) Short-term: Treasury Bonds $ 69,497 $ - $ (833 ) $ 68,664 Municipal bonds 34,980 - (422 ) 34,558 Total $ 104,477 $ - $ (1,255 ) $ 103,222 As of J anuary Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (in thousands) Short-term: Treasury Bonds $ 55,274 $ - $ (83 ) $ 55,191 Municipal bonds 4,891 - (8 ) 4,883 Total $ 60,165 $ - $ (91 ) $ 60,074 |
Net Sales (Tables)
Net Sales (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
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 issued upon the achievement of specified point levels are subject to expiration. . 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: Thirty-nine weeks ended October 28, October 29, 2023 2022 (in thousands) Beginning balance $ 8,130 $ 7,782 Revenue deferred 11,171 10,775 Revenue recognized (9,865 ) (10,786 ) Ending balance $ 9,436 $ 7,771 Gift card breakage for gift card liabilities not subject to escheatment is recognized as revenue in proportion to the redemption of gift cards. 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 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: Thirty-nine weeks ended October 28 October 29, 2023 2022 (in thousands) Beginning balance $ 2,527 $ 2,291 Gift card issuances 3,097 3,112 Gift card redemption and breakage (3,271 ) (3,214 ) Ending balance $ 2,353 $ 2,189 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Earnings per Common Share [Abstract] | |
Earnings per Common Share | The following table summarizes those effects for the diluted earnings per common share calculation: Thirteen weeks ended Thirty-nine weeks ended October 28, October 29 October 28, October 29 2023 2022 2023 2022 (in thousands, except per share amounts) Net income $ 31,803 $ 23,082 $ 104,964 $ 49,702 Weighted average number of common shares outstanding - Basic 61,682 62,507 61,807 62,603 Incremental shares from the assumed exercise of outstanding stock options and vesting of restricted stock units 386 244 303 207 Weighted average number of common shares outstanding - Diluted 62,068 62,751 62,110 62,810 Earnings per common share - Basic $ 0.52 $ 0.37 $ 1.70 $ 0.79 Earnings per common share - Diluted $ 0.51 $ 0.37 $ 1.69 $ 0.79 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Leases [Abstract] | |
Maturity of Operating Lease Liabilities | The following table summarizes the maturity of the Company’s operating lease liabilities by fiscal year as of October 28, 2023: October 28, 2023 (in thousands) Remainder of 2023 $ 21,213 2024 108,250 2025 89,975 2026 85,204 2027 73,050 Thereafter 180,155 Total undiscounted lease payments (1) 557,847 Less: Imputed interest (69,921 ) Total lease obligations 487,926 Less: Current obligations under leases (94,899 ) Long-term lease obligations $ 393,027 (1) Lease obligations exclude 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 and for the respective periods: Thirty-nine weeks ended October 28, October 29, 2023 2022 (dollars in thousands) Cash paid for operating leases $ 77,630 $ 70,157 Operating lease cost 77,100 70,656 Variable lease cost 9,182 7,649 Non-cash right-of-use assets obtained in exchange for lease obligations 52,108 48,083 Weighted-average remaining lease term 6.6 years 6.5 Weighted-average discount rate 3.8 % 3.4 % |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consists of the following: October 28, January 28, October 29, 2023 2023 2022 (in thousands) Compensation and benefits $ 18,359 $ 14,751 $ 16,047 Deferred revenue 11,789 10,657 9,960 Insurance 11,316 9,141 11,209 Sales and use taxes 10,833 6,567 9,860 Advertising 6,959 6,582 7,247 Real estate 6,025 6,283 8,124 Freight 2,885 2,641 3,585 Other 19,452 20,337 20,917 $ 87,618 $ 76,959 $ 86,949 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Equity Incentive Plans [Abstract] | |
Stock Option Activity | A summary of the Company’s stock option activity and related information for the thirty-nine October 28 Weighted Weighted average average remaining Number exercise contractual of options price term (years) Outstanding at January 28 2023 1,209,251 $ 53.92 Granted 144,630 57.91 Forfeited (47,380 ) 61.10 Exercised (152,583 ) 36.71 Outstanding at October 28 2023 1,153,918 56.40 6.9 Exercisable at October 28 2023 596,980 56.94 5.7 |
Weighted Average Assumptions | The weighted average grant date fair value per option for options granted during the thirty-nine October 28 29 Thirty-nine weeks ended October 28, October 29, 2023 2022 Risk-free interest rate 3.36 % 2.63 % Expected dividend yield - - Expected life (years) 6.25 6.25 years Expected volatility 47.16 % 44.40 % |
RSU Activity | A summary of the Company’s RSU activity and related information for the thirty-nine October 28 Weighted average Number grant date of shares fair value Non-vested balance at January 28 2023 276,278 $ 50.32 Granted 202,909 58.05 Forfeited (24,804 ) 52.90 Vested (96,226 ) 52.16 Non-vested balance at October 28 2023 358,157 54.02 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands | 9 Months Ended | |
Oct. 28, 2023 USD ($) Segment State Location | Jan. 28, 2023 USD ($) | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | ||
Number of retail locations | Location | 505 | |
Number of states in which retail locations are located | State | 30 | |
Number of operating segments | Segment | 1 | |
Held-to-Maturity Investment Securities [Abstract] | ||
Amortized cost | $ 104,477 | $ 60,165 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1,255) | (91) |
Fair market value | 103,222 | 60,074 |
Treasury Bonds [Member] | ||
Held-to-Maturity Investment Securities [Abstract] | ||
Amortized cost | 69,497 | 55,274 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (833) | (83) |
Fair market value | 68,664 | 55,191 |
Municipal Bonds [Member] | ||
Held-to-Maturity Investment Securities [Abstract] | ||
Amortized cost | 34,980 | 4,891 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (422) | (8) |
Fair market value | $ 34,558 | $ 4,883 |
Net Sales (Details)
Net Sales (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Net Sales [Abstract] | ||
Maximum redemption period for discount awards | 45 days | |
Ollie's Army Loyalty Program Liability [Abstract] | ||
Beginning balance | $ 8,130 | $ 7,782 |
Revenue deferred | 11,171 | 10,775 |
Revenue recognized | (9,865) | (10,786) |
Ending balance | 9,436 | 7,771 |
Gift Card Liability [Abstract] | ||
Beginning balance | 2,527 | 2,291 |
Gift card issuances | 3,097 | 3,112 |
Gift card redemption and breakage | (3,271) | (3,214) |
Ending balance | $ 2,353 | $ 2,189 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Earnings per Common Share [Abstract] | ||||
Net income | $ 31,803 | $ 23,082 | $ 104,964 | $ 49,702 |
Weighted average number of common shares outstanding - Basic (in shares) | 61,682,000 | 62,507,000 | 61,807,000 | 62,603,000 |
Incremental shares from the assumed exercise of outstanding stock options and vesting of restricted stock units (in shares) | 386,000 | 244,000 | 303,000 | 207,000 |
Weighted average number of common shares outstanding - Diluted (in shares) | 62,068,000 | 62,751,000 | 62,110,000 | 62,810,000 |
Earnings per common share - Basic (in dollars per share) | $ 0.52 | $ 0.37 | $ 1.7 | $ 0.79 |
Earnings per common share - Diluted (in dollars per share) | $ 0.51 | $ 0.37 | $ 1.69 | $ 0.79 |
Stock Options [Member] | ||||
Earnings per Common Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 491,766 | 791,256 | 616,304 | 879,134 |
Non-vested Restricted Stock Units [Member] | ||||
Earnings per Common Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 570 | 43,159 | 15,569 | 41,427 |
Leases (Details)
Leases (Details) $ in Thousands | 9 Months Ended | |||
Oct. 28, 2023 USD ($) Option | Oct. 29, 2022 USD ($) | Jan. 28, 2023 USD ($) | ||
Leases [Abstract] | ||||
Renewal term of leases | 5 years | |||
Maturity of Operating Lease Liabilities [Abstract] | ||||
Remainder of 2023 | $ 21,213 | |||
2024 | 108,250 | |||
2025 | 89,975 | |||
2026 | 85,204 | |||
2027 | 73,050 | |||
Thereafter | 180,155 | |||
Total undiscounted lease payments | [1] | 557,847 | ||
Less: Imputed interest | (69,921) | |||
Total lease obligations | 487,926 | |||
Less: Current obligations under leases | (94,899) | $ (81,589) | $ (88,636) | |
Long-term lease obligations | 393,027 | 373,228 | $ 351,251 | |
Minimum lease payments for leases signed, but not commenced | 13,000 | |||
Other Information Related to Operating Leases [Abstract] | ||||
Cash paid for operating leases | 77,630 | 70,157 | ||
Operating lease cost | 77,100 | 70,656 | ||
Variable lease cost | 9,182 | 7,649 | ||
Non-cash right-of-use assets obtained in exchange for lease obligations | $ 52,108 | $ 48,083 | ||
Weighted-average remaining lease term | 6 years 7 months 6 days | 6 years 6 months | ||
Weighted-average discount rate | 3.80% | 3.40% | ||
Minimum [Member] | ||||
Leases [Abstract] | ||||
Number of options to renew operating leases | Option | 3 | |||
Maximum [Member] | ||||
Leases [Abstract] | ||||
Number of options to renew operating leases | Option | 5 | |||
[1]Lease obligations exclude $13.0 million of minimum lease payments for leases signed, but not commenced. |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Accrued Expenses and Other Current Liabilities [Abstract] | |||
Compensation and benefits | $ 18,359 | $ 14,751 | $ 16,047 |
Deferred revenue | 11,789 | 10,657 | 9,960 |
Insurance | 11,316 | 9,141 | 11,209 |
Sales and use taxes | 10,833 | 6,567 | 9,860 |
Advertising | 6,959 | 6,582 | 7,247 |
Real estate | 6,025 | 6,283 | 8,124 |
Freight | 2,885 | 2,641 | 3,585 |
Other | 19,452 | 20,337 | 20,917 |
Total accrued expenses and other current liabilities | $ 87,618 | $ 76,959 | $ 86,949 |
Debt Obligations and Financin_2
Debt Obligations and Financing Arrangements (Details) $ in Millions | 9 Months Ended |
Oct. 28, 2023 USD ($) | |
Credit Facility [Member] | |
Debt Obligations and Financing Arrangements [Abstract] | |
Maximum borrowing capacity | $ 150 |
Credit Facility [Member] | Minimum [Member] | |
Debt Obligations and Financing Arrangements [Abstract] | |
Consolidated fixed charge coverage ratio | 1 |
Credit Facility [Member] | Federal Funds Effective Rate [Member] | |
Debt Obligations and Financing Arrangements [Abstract] | |
Basis spread | 0.50% |
Credit Facility [Member] | SOFR [Member] | |
Debt Obligations and Financing Arrangements [Abstract] | |
Basis spread | 1% |
Term of variable rate | 1 month |
Interest rate floor | 0% |
Credit Facility [Member] | SOFR [Member] | Minimum [Member] | |
Debt Obligations and Financing Arrangements [Abstract] | |
Basis spread | 1% |
Credit Facility [Member] | SOFR [Member] | Maximum [Member] | |
Debt Obligations and Financing Arrangements [Abstract] | |
Basis spread | 1.50% |
Credit Facility [Member] | ABR Rate [Member] | Minimum [Member] | |
Debt Obligations and Financing Arrangements [Abstract] | |
Basis spread | 0% |
Credit Facility [Member] | ABR Rate [Member] | Maximum [Member] | |
Debt Obligations and Financing Arrangements [Abstract] | |
Basis spread | 0.50% |
Revolving Credit Facility [Member] | |
Debt Obligations and Financing Arrangements [Abstract] | |
Term of facility | 5 years |
Maximum borrowing capacity | $ 100 |
Maturity date | May 22, 2024 |
Outstanding borrowings | $ 0 |
Borrowing availability | 91.8 |
Outstanding letters of credit commitments | 7.9 |
Rent reserves | $ 0.2 |
Revolving Credit Facility [Member] | Minimum [Member] | |
Debt Obligations and Financing Arrangements [Abstract] | |
Variable unused line fee percentage | 0.125% |
Revolving Credit Facility [Member] | Maximum [Member] | |
Debt Obligations and Financing Arrangements [Abstract] | |
Percentage of most recent appraised value of eligible inventory | 90% |
Variable unused line fee percentage | 0.25% |
Sub-Facility for Letters of Credit [Member] | |
Debt Obligations and Financing Arrangements [Abstract] | |
Maximum borrowing capacity | $ 45 |
Sub-Facility for 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 | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Income Taxes [Abstract] | ||||
Effective income tax rate | 26.10% | 24.10% | 25.10% | 22.50% |
Discrete tax expense (benefit) | $ 0.1 | $ (0.2) | $ (0.7) | $ (1.5) |
Equity Incentive Plans, Equity
Equity Incentive Plans, Equity Incentive Plans (Details) | 9 Months Ended |
Oct. 28, 2023 shares | |
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% |
2012 Plan [Member] | Stock Options [Member] | Year 2 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 20% |
2012 Plan [Member] | Stock Options [Member] | Year 3 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 20% |
2012 Plan [Member] | Stock Options [Member] | Year 4 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 20% |
2012 Plan [Member] | Stock Options [Member] | Year 5 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 20% |
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) | 1,950,619 |
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% |
2015 Plan [Member] | Stock Options [Member] | Year 2 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 25% |
2015 Plan [Member] | Stock Options [Member] | Year 3 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 25% |
2015 Plan [Member] | Stock Options [Member] | Year 4 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 25% |
Equity Incentive Plans, Stock O
Equity Incentive Plans, Stock Option Activity (Details) - Stock Options [Member] - $ / shares | 9 Months Ended |
Oct. 28, 2023 | |
Number of Options [Roll Forward] | |
Outstanding at beginning of period (in shares) | 1,209,251 |
Granted (in shares) | 144,630 |
Forfeited (in shares) | (47,380) |
Exercised (in shares) | (152,583) |
Outstanding at end of period (in shares) | 1,153,918 |
Exercisable at end of period (in shares) | 596,980 |
Weighted Average Exercise Price [Abstract] | |
Outstanding at beginning of period (in dollars per share) | $ 53.92 |
Granted (in dollars per share) | 57.91 |
Forfeited (in dollars per share) | 61.1 |
Exercised (in dollars per share) | 36.71 |
Outstanding at end of period (in dollars per share) | 56.4 |
Exercisable at end of period (in dollars per share) | $ 56.94 |
Weighted Average Remaining Contractual Term [Abstract] | |
Outstanding at end of period | 6 years 10 months 24 days |
Exercisable at end of period | 5 years 8 months 12 days |
Equity Incentive Plans, Weighte
Equity Incentive Plans, Weighted Average Assumptions (Details) - $ / shares | 9 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Equity Incentive Plans [Abstract] | ||
Weighted average grant date fair value per option granted (in dollars per share) | $ 29.07 | $ 20.62 |
Risk-free interest rate | 3.36% | 2.63% |
Expected dividend yield | 0% | 0% |
Expected life | 6 years 3 months | 6 years 3 months |
Expected volatility | 47.16% | 44.40% |
Equity Incentive Plans, RSU Act
Equity Incentive Plans, RSU Activity (Details) - Restricted Stock Units [Member] | 9 Months Ended |
Oct. 28, 2023 $ / shares shares | |
Equity Incentive Plans [Abstract] | |
Vesting period | 4 years |
Number of Shares [Roll Forward] | |
Non-vested at beginning of period (in shares) | shares | 276,278 |
Granted (in shares) | shares | 202,909 |
Forfeited (in shares) | shares | (24,804) |
Vested (in shares) | shares | (96,226) |
Non-vested at end of period (in shares) | shares | 358,157 |
Weighted Average Grant Date Fair Value [Abstract] | |
Non-vested at beginning of period (in dollars per share) | $ / shares | $ 50.32 |
Granted (in dollars per share) | $ / shares | 58.05 |
Forfeited (in dollars per share) | $ / shares | 52.9 |
Vested (in dollars per share) | $ / shares | 52.16 |
Non-vested at end of period (in dollars per share) | $ / shares | $ 54.02 |
Minimum [Member] | |
Equity Incentive Plans [Abstract] | |
Cliff vesting period | 1 year |
Maximum [Member] | |
Equity Incentive Plans [Abstract] | |
Cliff vesting period | 4 years |
Equity Incentive Plans, Stock-B
Equity Incentive Plans, Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Stock-Based Compensation Expense [Abstract] | ||||
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 25.4 | $ 25.4 | ||
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 | $ 3 | $ 2.6 | $ 9 | $ 7.3 |
Common Stock, Common Stock (Det
Common Stock, Common Stock (Details) | 9 Months Ended | ||
Oct. 28, 2023 Vote / shares $ / shares shares | Jan. 28, 2023 $ / shares shares | Oct. 29, 2022 $ / shares shares | |
Common Stock [Abstract] | |||
Common stock, number of votes per share | Vote / shares | 1 | ||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | 500,000,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred stock, shares issued (in shares) | 0 | 0 | 0 |
Common Stock, Share Repurchase
Common Stock, Share Repurchase Program (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | Nov. 30, 2021 | Mar. 16, 2021 | Dec. 15, 2020 | |
Share Repurchase Program [Abstract] | |||||||
Shares repurchased | $ 10,813 | $ 20,004 | $ 39,807 | $ 29,955 | |||
Share Repurchase Program [Member] | |||||||
Share Repurchase Program [Abstract] | |||||||
Authorized repurchase of common stock | $ 100,000 | ||||||
Increase in authorized repurchase of common stock | $ 200,000 | $ 100,000 | |||||
Shares repurchased (in shares) | 634,733 | ||||||
Shares repurchased | $ 39,800 | ||||||
Remaining authorized repurchase of common stock | $ 98,400 | $ 98,400 |
Transactions with Affiliated _2
Transactions with Affiliated and Related Parties (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Related Party [Member] | Subsidiary of Hillman Solutions, Inc. [Member] | Purchase of Inventory [Member] | ||
Transactions with Related Parties [Abstract] | ||
Payments to related parties | $ 1.2 | $ 0.5 |