Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
May 04, 2024 | May 31, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | May 04, 2024 | |
Current Fiscal Year End Date | --02-01 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
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, $0.001 par value | |
Trading Symbol | OLLI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 61,206,696 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Condensed Consolidated Statements of Income [Abstract] | ||
Net sales | $ 508,818 | $ 459,154 |
Cost of sales | 299,460 | 280,583 |
Gross profit | 209,358 | 178,571 |
Selling, general, and administrative expenses | 142,419 | 130,268 |
Depreciation and amortization expenses | 7,716 | 6,483 |
Pre-opening expenses | 2,726 | 3,281 |
Operating income | 56,497 | 38,539 |
Interest (income), net | (4,301) | (2,675) |
Income before income taxes | 60,798 | 41,214 |
Income tax expense | 14,456 | 10,234 |
Net income | $ 46,342 | $ 30,980 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.76 | $ 0.5 |
Diluted (in dollars per share) | $ 0.75 | $ 0.5 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 61,380 | 61,970 |
Diluted (in shares) | 61,739 | 62,207 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | May 04, 2024 | Feb. 03, 2024 | Apr. 29, 2023 |
Current assets: | |||
Cash and cash equivalents | $ 212,250 | $ 266,262 | $ 134,959 |
Short-term investments | 129,250 | 86,980 | 140,530 |
Accounts receivable | 916 | 2,223 | 985 |
Inventories | 527,469 | 505,790 | 497,988 |
Prepaid expenses and other assets | 8,897 | 10,173 | 8,806 |
Total current assets | 878,782 | 871,428 | 783,268 |
Property and equipment, net of accumulated depreciation of $193,557, $184,201 and $157,959, respectively | 282,669 | 270,063 | 187,030 |
Operating lease right-of-use assets | 472,525 | 475,526 | 443,153 |
Goodwill | 444,850 | 444,850 | 444,850 |
Trade name | 230,559 | 230,559 | 230,559 |
Other assets | 2,083 | 2,168 | 2,178 |
Total assets | 2,311,468 | 2,294,594 | 2,091,038 |
Current liabilities: | |||
Current portion of long-term debt | 599 | 639 | 519 |
Accounts payable | 103,495 | 128,097 | 99,554 |
Income taxes payable | 29,227 | 14,744 | 12,476 |
Current portion of operating lease liabilities | 89,607 | 89,176 | 89,528 |
Accrued expenses and other current liabilities | 87,864 | 82,895 | 76,136 |
Total current liabilities | 310,792 | 315,551 | 278,213 |
Revolving credit facility | 0 | 0 | 0 |
Long-term debt | 1,077 | 1,022 | 946 |
Deferred income taxes | 71,628 | 71,877 | 71,132 |
Long-term operating lease liabilities | 395,547 | 397,912 | 356,791 |
Total liabilities | 779,044 | 786,362 | 707,082 |
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; 67,069, 66,927, and 66,778 shares issued, respectively | 67 | 67 | 67 |
Additional paid-in capital | 697,816 | 694,959 | 680,881 |
Retained earnings | 1,214,293 | 1,167,951 | 1,017,492 |
Treasury - common stock, at cost; 5,810, 5,473, and 4,880 shares, respectively | (379,752) | (354,745) | (314,484) |
Total stockholders' equity | 1,532,424 | 1,508,232 | 1,383,956 |
Total liabilities and stockholders' equity | $ 2,311,468 | $ 2,294,594 | $ 2,091,038 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 04, 2024 | Feb. 03, 2024 | Apr. 29, 2023 |
Assets | |||
Property and equipment, accumulated depreciation | $ 193,557 | $ 184,201 | $ 157,959 |
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) | 67,069,000 | 66,927,000 | 66,778,000 |
Treasury - common stock (in shares) | 5,810,000 | 5,473,000 | 4,880,000 |
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. 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) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | $ 0 | $ 0 | 2,863 | 0 | 2,863 |
Proceeds from stock options exercised | $ 0 | $ 0 | 1,592 | 0 | 1,592 |
Proceeds from stock options exercised (in shares) | 42 | 0 | |||
Vesting of restricted stock | $ 0 | $ 0 | 0 | 0 | 0 |
Vesting of restricted stock (in shares) | 86 | 0 | |||
Common shares withheld for taxes | $ 0 | $ 0 | (1,268) | 0 | (1,268) |
Common shares withheld for taxes (in shares) | (22) | 0 | |||
Shares repurchased | $ 0 | $ (12,280) | 0 | 0 | (12,280) |
Shares repurchased (in shares) | 0 | (216) | |||
Net income | $ 0 | $ 0 | 0 | 30,980 | 30,980 |
Ending balance at Apr. 29, 2023 | $ 67 | $ (314,484) | 680,881 | 1,017,492 | $ 1,383,956 |
Ending balance (in shares) at Apr. 29, 2023 | 66,778 | ||||
Ending balance (in shares) at Apr. 29, 2023 | (4,880) | (4,880) | |||
Beginning balance at Feb. 03, 2024 | $ 67 | $ (354,745) | 694,959 | 1,167,951 | $ 1,508,232 |
Beginning balance (in shares) at Feb. 03, 2024 | 66,927 | ||||
Beginning balance (in shares) at Feb. 03, 2024 | (5,473) | (5,473) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | $ 0 | $ 0 | 3,149 | 0 | $ 3,149 |
Proceeds from stock options exercised | $ 0 | $ 0 | 2,548 | 0 | 2,548 |
Proceeds from stock options exercised (in shares) | 66 | 0 | |||
Vesting of restricted stock | $ 0 | $ 0 | 0 | 0 | 0 |
Vesting of restricted stock (in shares) | 112 | 0 | |||
Common shares withheld for taxes | $ 0 | $ 0 | (2,840) | 0 | (2,840) |
Common shares withheld for taxes (in shares) | (36) | 0 | |||
Shares repurchased | $ 0 | $ (25,007) | 0 | 0 | (25,007) |
Shares repurchased (in shares) | 0 | (337) | |||
Net income | $ 0 | $ 0 | 0 | 46,342 | 46,342 |
Ending balance at May. 04, 2024 | $ 67 | $ (379,752) | $ 697,816 | $ 1,214,293 | $ 1,532,424 |
Ending balance (in shares) at May. 04, 2024 | 67,069 | ||||
Ending balance (in shares) at May. 04, 2024 | (5,810) | (5,810) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Cash Flows from Operating Activities: | ||
Net income | $ 46,342 | $ 30,980 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 9,742 | 8,025 |
Amortization of debt issuance costs | 13 | 69 |
(Gain) loss on sale of assets | (118) | 5 |
Deferred income tax provision | (249) | 500 |
Stock-based compensation expense | 3,149 | 2,863 |
Other | (480) | 0 |
Changes in operating assets and liabilities: | ||
Inventories | (21,679) | (27,454) |
Accounts receivable | 1,307 | 1,389 |
Prepaid expenses and other assets | 1,348 | 1,692 |
Accounts payable | (21,163) | 12,655 |
Income taxes payable | 14,483 | 9,420 |
Accrued expenses and other liabilities | 7,489 | (4,272) |
Net cash provided by operating activities | 40,184 | 35,872 |
Cash Flows from Investing Activities: | ||
Purchases of property and equipment | (26,865) | (19,010) |
Proceeds from sale of property and equipment | 140 | 64 |
Purchases of short-term investments | (96,042) | (85,365) |
Maturities of short-term investments | 54,252 | 5,000 |
Net cash used in investing activities | (68,515) | (99,311) |
Cash Flows from Financing Activities: | ||
Repayments on finance leases | (382) | (242) |
Proceeds from stock option exercises | 2,548 | 1,592 |
Common shares withheld for taxes | (2,840) | (1,268) |
Payment for shares repurchased | (25,007) | (12,280) |
Net cash used in financing activities | (25,681) | (12,198) |
Net decrease in cash and cash equivalents | (54,012) | (75,637) |
Cash and cash equivalents, beginning of the period | 266,262 | 210,596 |
Cash and cash equivalents, end of the period | 212,250 | 134,959 |
Cash paid during the period for: | ||
Interest | 110 | 116 |
Income taxes | 222 | 333 |
Non-cash investing activities: | ||
Accrued purchases of property and equipment | $ 6,379 | $ 7,666 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
May 04, 2024 | |
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 516 retail locations in 30 states as of May 4, 2024. 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 (c) Basis of Presentation The The . 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 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 May 4, 2024, February 3, 2024, and April 29, 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 May 4, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (in thousands) Short-term: Treasury Bonds $ 88,234 $ 24 $ - $ 88,258 Municipal bonds 12,198 - (72 ) 12,126 Corporate bonds 28,818 9 - 28,827 Total $ 129,250 $ 33 $ (72 ) $ 129,211 As of February 3, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (in thousands) Short-term: Treasury Bonds $ 49,765 $ 16 $ - $ 49,781 Municipal bonds 10,136 - (139 ) 9,997 Corporate bonds 27,079 22 - 27,101 Total $ 86,980 $ 38 $ (139 ) $ 86,879 As of April 29, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (in thousands) Short-term: Treasury Bonds $ 101,072 $ - $ (935 ) $ 100,137 Municipal bonds 39,458 - (164 ) 39,294 Total $ 140,530 $ - $ (1,099 ) $ 139,431 |
Net Sales
Net Sales | 3 Months Ended |
May 04, 2024 | |
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. Unless temporarily extended, the maximum redemption period is 45 days . 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: Thirteen weeks ended May 4, April 29, 2024 2023 (in thousands) Beginning balance $ 10,159 $ 8,130 Revenue deferred 4,436 3,326 Revenue recognized (3,442 ) (2,687 ) Ending balance $ 11,153 $ 8,769 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: Thirteen weeks ended May 4 April 29, 2024 2023 (in thousands) Beginning balance $ 2,650 $ 2,527 Gift card issuances 962 900 Gift card redemption and breakage (1,143 ) (1,098 ) Ending balance $ 2,469 $ 2,329 |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
May 04, 2024 | |
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 May 4, April 29, 2024 2023 (in thousands, except per share amounts) Net income $ 46,342 $ 30,980 Weighted average number of common shares outstanding – Basic 61,380 61,970 Incremental shares from the assumed exercise of outstanding stock options and vesting of restricted stock units 359 237 Weighted average number of common shares outstanding - Diluted 61,739 62,207 Earnings per common share – Basic $ 0.76 $ 0.50 Earnings per common share - Diluted $ 0.75 $ 0.50 The effect of the weighted average assumed exercise of stock options outstanding totaling and for the thirteen weeks ended May 4, 2024 and April 29, 2023, 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 and for the thirteen weeks ended May 4, 2024 and April 29, 2023, respectively, were excluded from the calculation of diluted weighted average common shares outstanding because the effect would have been antidilutive. |
Leases
Leases | 3 Months Ended |
May 04, 2024 | |
Leases [Abstract] | |
Leases | (4) Leases 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 2038 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 May 4 , 2024: May 4, 2024 (in thousands) Remainder of 2024 $ 79,819 2025 96,603 2026 92,465 2027 80,248 2028 63,788 Thereafter 142,158 Total undiscounted lease payments (1) 555,081 Less: Imputed interest (69,927 ) Total lease obligations 485,154 Less: Current obligations under leases (89,607 ) Long-term lease obligations $ 395,547 (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: Thirteen weeks ended May 4, April 29, 2024 2023 (dollars in thousands) Cash paid for operating leases $ 28,167 $ 25,344 Operating lease cost 27,241 24,888 Variable lease cost 3,846 2,835 Non-cash right-of-use assets obtained in exchange for lease obligations 7,022 12,273 Weighted-average remaining lease term 6.4 years 6.3 Weighted-average discount rate 4.0 % 3.5 % |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
May 04, 2024 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | (5) Commitments and Contingencies 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 Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
May 04, 2024 | |
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: May 4, February 3, April 29, 2024 2024 2023 (in thousands) Compensation and benefits $ 16,907 $ 20,535 $ 11,307 Deferred revenue 13,622 12,809 11,098 Sales and use taxes 11,321 10,234 8,694 Insurance 10,540 9,671 9,517 Advertising 6,346 1,780 7,004 Freight 5,404 4,359 2,035 Real estate 4,557 4,680 6,223 Other 19,167 18,827 20,258 $ 87,864 $ 82,895 $ 76,136 |
Debt Obligations and Financing
Debt Obligations and Financing Arrangements | 3 Months Ended |
May 04, 2024 | |
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”). 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. On January 9, 2024, the Company refinanced its credit facility (the “Credit Facility”), pursuant to which the maturity date for any loans under the revolving credit facility was extended for a period of five years from the effective date of January 9, 2024 and a zero percent (0.0%) interest rate floor was added to the option for the SOFR Loan Rate (as defined in the Amendment). Loans under the Revolving Credit Facility mature on January 9, 2029. 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 May 4, 2024, 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, 2024, the Company had no outstanding borrowings under the Revolving Credit Facility, with $92.0 million of borrowing availability, outstanding letters of credit commitments of $7.8 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 thirteen weeks ended May 4, 2024. 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 May 4, 2024, 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 proforma compliance with the applicable conditions described in the Credit Facility. |
Income Taxes
Income Taxes | 3 Months Ended |
May 04, 2024 | |
Income Taxes [Abstract] | |
Income Taxes | (8) Income Taxes The effective income tax rate for the thirteen weeks ended May 4, 2024 was a provision of 23.8%, or $14.5 million 24.8%, or $10.2 The 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 2018 and prior. Management believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues arise as a result of a tax audit, and are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. |
Equity Incentive Plans
Equity Incentive Plans | 3 Months Ended |
May 04, 2024 | |
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 May 4, 2024, there were 1,673,281 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 for the thirteen weeks ended May 4, 2024 follows: Weighted Weighted average average remaining Number exercise contractual of options price term (years) (in thousands, except share and per share amounts) Outstanding at February 3 2024 1,119,484 $ 56.71 Granted 120,830 74.23 Forfeited (1,803 ) 77.84 Exercised (66,390 ) 38.39 Outstanding at May 4 2024 1,172,121 59.52 6.8 Exercisable at May 4 2024 740,952 58.45 5.7 The weighted average grant date fair value per option for options granted during the thirteen weeks ended May 4, 2024 and April 29, 2023 was and 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, April 29 2024 2023 Risk-free interest rate 4.28 % 3.36 % Expected dividend yield — — Expected life (years) 6.25 years 6.25 years Expected volatility 47.63 % 47.18 % 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 thirteen weeks ended May 4, 2024 is as follows: Weighted average Number grant date of shares fair value Non-vested balance at February 3 2024 350,804 $ 53.94 Granted 168,362 74.23 Forfeited (3,087 ) 54.16 Vested (112,217 ) 54.10 Non-vested balance at May 4 2024 403,862 62.35 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 weeks ended May 4, 2024 and , respectively. As of May 4, 2024 |
Common Stock
Common Stock | 3 Months Ended |
May 04, 2024 | |
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 of Directors of the Company authorized an additional $200.0 million to repurchase stock pursuant to the Company’s share repurchase program, expiring on December 15, 2023. On November 30, 2023, the Company’s Board of Directors authorized an extension to the existing share repurchase program set to expire on December 15, 2023, until March 31, 2026. The shares to be repurchased may be purchased from time to time in open market conditions (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. Repurchases may be made pursuant to plans intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, which could allow the Company to purchase its shares during periods when it otherwise might be prevented from doing so under insider trading laws or because of self-imposed trading blackout periods. Repurchases are expected to be funded from cash on hand or through the utilization of the Company’s Revolving Credit Facility. The repurchase authorization does not require the purchase of a specific number of shares and is subject to suspension or termination by the Company’s Board of Directors at any time. During the thirteen May 4, |
Transactions with Affiliated an
Transactions with Affiliated and Related Parties | 3 Months Ended |
May 04, 2024 | |
Transactions with Affiliated and Related Parties [Abstract] | |
Transactions with Affiliated and Related Parties | (11) Transactions with Affiliated and Related Parties During the thirteen weeks ended May 4, 2024, there were no purchases made from Hillman Solutions, Inc. or any of its subsidiaries where John Swygert, President and Chief Executive Officer of Ollie’s, is a member of its Board of Directors. During the thirteen weeks ended April 29, 2023, the Company purchased inventory of $0.5 million from a subsidiary of Hillman Solutions, Inc. |
Subsequent Events
Subsequent Events | 3 Months Ended |
May 04, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | (12) Subsequent Events The Company has acquired eleven former 99 Cents Only Stores locations for $14.6 million. Of the eleven |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
May 04, 2024 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
May 04, 2024 | |
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 |
Basis of Presentation | (c) Basis of Presentation The The . |
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 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 May 4, 2024, February 3, 2024, and April 29, 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 May 4, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (in thousands) Short-term: Treasury Bonds $ 88,234 $ 24 $ - $ 88,258 Municipal bonds 12,198 - (72 ) 12,126 Corporate bonds 28,818 9 - 28,827 Total $ 129,250 $ 33 $ (72 ) $ 129,211 As of February 3, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (in thousands) Short-term: Treasury Bonds $ 49,765 $ 16 $ - $ 49,781 Municipal bonds 10,136 - (139 ) 9,997 Corporate bonds 27,079 22 - 27,101 Total $ 86,980 $ 38 $ (139 ) $ 86,879 As of April 29, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (in thousands) Short-term: Treasury Bonds $ 101,072 $ - $ (935 ) $ 100,137 Municipal bonds 39,458 - (164 ) 39,294 Total $ 140,530 $ - $ (1,099 ) $ 139,431 |
Net Sales (Policies)
Net Sales (Policies) | 3 Months Ended |
May 04, 2024 | |
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. 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. Unless temporarily extended, the maximum redemption period is 45 days . 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. 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. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
May 04, 2024 | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Held-to-Maturity Investment Securities | As of May 4, 2024, February 3, 2024, and April 29, 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 May 4, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (in thousands) Short-term: Treasury Bonds $ 88,234 $ 24 $ - $ 88,258 Municipal bonds 12,198 - (72 ) 12,126 Corporate bonds 28,818 9 - 28,827 Total $ 129,250 $ 33 $ (72 ) $ 129,211 As of February 3, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (in thousands) Short-term: Treasury Bonds $ 49,765 $ 16 $ - $ 49,781 Municipal bonds 10,136 - (139 ) 9,997 Corporate bonds 27,079 22 - 27,101 Total $ 86,980 $ 38 $ (139 ) $ 86,879 As of April 29, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value (in thousands) Short-term: Treasury Bonds $ 101,072 $ - $ (935 ) $ 100,137 Municipal bonds 39,458 - (164 ) 39,294 Total $ 140,530 $ - $ (1,099 ) $ 139,431 |
Net Sales (Tables)
Net Sales (Tables) | 3 Months Ended |
May 04, 2024 | |
Net Sales [Abstract] | |
Reconciliation of Liabilities for Ollie's Army Loyalty Program and Gift Cards | The following table is a reconciliation of the liability related to this program: Thirteen weeks ended May 4, April 29, 2024 2023 (in thousands) Beginning balance $ 10,159 $ 8,130 Revenue deferred 4,436 3,326 Revenue recognized (3,442 ) (2,687 ) Ending balance $ 11,153 $ 8,769 The following table is a reconciliation of the gift card liability: Thirteen weeks ended May 4 April 29, 2024 2023 (in thousands) Beginning balance $ 2,650 $ 2,527 Gift card issuances 962 900 Gift card redemption and breakage (1,143 ) (1,098 ) Ending balance $ 2,469 $ 2,329 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
May 04, 2024 | |
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 May 4, April 29, 2024 2023 (in thousands, except per share amounts) Net income $ 46,342 $ 30,980 Weighted average number of common shares outstanding – Basic 61,380 61,970 Incremental shares from the assumed exercise of outstanding stock options and vesting of restricted stock units 359 237 Weighted average number of common shares outstanding - Diluted 61,739 62,207 Earnings per common share – Basic $ 0.76 $ 0.50 Earnings per common share - Diluted $ 0.75 $ 0.50 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
May 04, 2024 | |
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 May 4 , 2024: May 4, 2024 (in thousands) Remainder of 2024 $ 79,819 2025 96,603 2026 92,465 2027 80,248 2028 63,788 Thereafter 142,158 Total undiscounted lease payments (1) 555,081 Less: Imputed interest (69,927 ) Total lease obligations 485,154 Less: Current obligations under leases (89,607 ) Long-term lease obligations $ 395,547 (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: Thirteen weeks ended May 4, April 29, 2024 2023 (dollars in thousands) Cash paid for operating leases $ 28,167 $ 25,344 Operating lease cost 27,241 24,888 Variable lease cost 3,846 2,835 Non-cash right-of-use assets obtained in exchange for lease obligations 7,022 12,273 Weighted-average remaining lease term 6.4 years 6.3 Weighted-average discount rate 4.0 % 3.5 % |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
May 04, 2024 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consists of the following: May 4, February 3, April 29, 2024 2024 2023 (in thousands) Compensation and benefits $ 16,907 $ 20,535 $ 11,307 Deferred revenue 13,622 12,809 11,098 Sales and use taxes 11,321 10,234 8,694 Insurance 10,540 9,671 9,517 Advertising 6,346 1,780 7,004 Freight 5,404 4,359 2,035 Real estate 4,557 4,680 6,223 Other 19,167 18,827 20,258 $ 87,864 $ 82,895 $ 76,136 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 3 Months Ended |
May 04, 2024 | |
Equity Incentive Plans [Abstract] | |
Stock Option Activity | A summary of the Company’s stock option activity and related information for the thirteen weeks ended May 4, 2024 follows: Weighted Weighted average average remaining Number exercise contractual of options price term (years) (in thousands, except share and per share amounts) Outstanding at February 3 2024 1,119,484 $ 56.71 Granted 120,830 74.23 Forfeited (1,803 ) 77.84 Exercised (66,390 ) 38.39 Outstanding at May 4 2024 1,172,121 59.52 6.8 Exercisable at May 4 2024 740,952 58.45 5.7 |
Weighted Average Assumptions | The weighted average grant date fair value per option for options granted during the thirteen weeks ended May 4, 2024 and April 29, 2023 was and 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, April 29 2024 2023 Risk-free interest rate 4.28 % 3.36 % Expected dividend yield — — Expected life (years) 6.25 years 6.25 years Expected volatility 47.63 % 47.18 % |
RSU Activity | A summary of the Company’s RSU activity and related information for the thirteen weeks ended May 4, 2024 is as follows: Weighted average Number grant date of shares fair value Non-vested balance at February 3 2024 350,804 $ 53.94 Granted 168,362 74.23 Forfeited (3,087 ) 54.16 Vested (112,217 ) 54.10 Non-vested balance at May 4 2024 403,862 62.35 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | ||
May 04, 2024 USD ($) Location State Segment | Feb. 03, 2024 USD ($) | Apr. 29, 2023 USD ($) | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |||
Number of retail locations | Location | 516 | ||
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 | $ 129,250 | $ 86,980 | $ 140,530 |
Gross unrealized gains | 33 | 38 | 0 |
Gross unrealized losses | (72) | (139) | (1,099) |
Fair market value | 129,211 | 86,879 | 139,431 |
Treasury Bonds [Member] | |||
Held-to-Maturity Investment Securities [Abstract] | |||
Amortized cost | 88,234 | 49,765 | 101,072 |
Gross unrealized gains | 24 | 16 | 0 |
Gross unrealized losses | 0 | 0 | (935) |
Fair market value | 88,258 | 49,781 | 100,137 |
Municipal Bonds [Member] | |||
Held-to-Maturity Investment Securities [Abstract] | |||
Amortized cost | 12,198 | 10,136 | 39,458 |
Gross unrealized gains | 0 | 0 | 0 |
Gross unrealized losses | (72) | (139) | (164) |
Fair market value | 12,126 | 9,997 | $ 39,294 |
Corporate Bonds [Member] | |||
Held-to-Maturity Investment Securities [Abstract] | |||
Amortized cost | 28,818 | 27,079 | |
Gross unrealized gains | 9 | 22 | |
Gross unrealized losses | 0 | 0 | |
Fair market value | $ 28,827 | $ 27,101 |
Net Sales (Details)
Net Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Net Sales [Abstract] | ||
Maximum redemption period for discount awards | 45 days | |
Ollie's Army Loyalty Program Liability [Abstract] | ||
Beginning balance | $ 10,159 | $ 8,130 |
Revenue deferred | 4,436 | 3,326 |
Revenue recognized | (3,442) | (2,687) |
Ending balance | 11,153 | 8,769 |
Gift Card Liability [Abstract] | ||
Beginning balance | 2,650 | 2,527 |
Gift card issuances | 962 | 900 |
Gift card redemption and breakage | (1,143) | (1,098) |
Ending balance | $ 2,469 | $ 2,329 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Earnings per Common Share [Abstract] | ||
Net income | $ 46,342 | $ 30,980 |
Weighted average number of common shares outstanding - Basic (in shares) | 61,380,000 | 61,970,000 |
Incremental shares from the assumed exercise of outstanding stock options and vesting of restricted stock units (in shares) | 359,000 | 237,000 |
Weighted average number of common shares outstanding - Diluted (in shares) | 61,739,000 | 62,207,000 |
Earnings per common share - Basic (in dollars per share) | $ 0.76 | $ 0.5 |
Earnings per common share - Diluted (in dollars per share) | $ 0.75 | $ 0.5 |
Stock Options [Member] | ||
Earnings per Common Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 519,736 | 841,519 |
Non-vested Restricted Stock Units [Member] | ||
Earnings per Common Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 46 | 26,241 |
Leases (Details)
Leases (Details) $ in Thousands | 3 Months Ended | |||
May 04, 2024 USD ($) Option | Apr. 29, 2023 USD ($) | Feb. 03, 2024 USD ($) | ||
Leases [Abstract] | ||||
Renewal term of leases | 5 years | |||
Maturity of Operating Lease Liabilities [Abstract] | ||||
Remainder of 2024 | $ 79,819 | |||
2025 | 96,603 | |||
2026 | 92,465 | |||
2027 | 80,248 | |||
2028 | 63,788 | |||
Thereafter | 142,158 | |||
Total undiscounted lease payments | [1] | 555,081 | ||
Less: Imputed interest | (69,927) | |||
Total lease obligations | 485,154 | |||
Less: Current obligations under leases | (89,607) | $ (89,528) | $ (89,176) | |
Long-term lease obligations | 395,547 | 356,791 | $ 397,912 | |
Minimum lease payments for leases signed, but not commenced | 40,700 | |||
Other Information Related to Operating Leases [Abstract] | ||||
Cash paid for operating leases | 28,167 | 25,344 | ||
Operating lease cost | 27,241 | 24,888 | ||
Variable lease cost | 3,846 | 2,835 | ||
Non-cash right-of-use assets obtained in exchange for lease obligations | $ 7,022 | $ 12,273 | ||
Weighted-average remaining lease term | 6 years 4 months 24 days | 6 years 3 months 18 days | ||
Weighted-average discount rate | 4% | 3.50% | ||
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 $40.7 million of minimum lease payments for leases signed, but not commenced. |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | May 04, 2024 | Feb. 03, 2024 | Apr. 29, 2023 |
Accrued Expenses and Other Current Liabilities [Abstract] | |||
Compensation and benefits | $ 16,907 | $ 20,535 | $ 11,307 |
Deferred revenue | 13,622 | 12,809 | 11,098 |
Sales and use taxes | 11,321 | 10,234 | 8,694 |
Insurance | 10,540 | 9,671 | 9,517 |
Advertising | 6,346 | 1,780 | 7,004 |
Freight | 5,404 | 4,359 | 2,035 |
Real estate | 4,557 | 4,680 | 6,223 |
Other | 19,167 | 18,827 | 20,258 |
Total accrued expenses and other current liabilities | $ 87,864 | $ 82,895 | $ 76,136 |
Debt Obligations and Financin_2
Debt Obligations and Financing Arrangements (Details) $ in Millions | 3 Months Ended |
May 04, 2024 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 |
Term of extension | 5 years |
Maturity date | Jan. 09, 2029 |
Outstanding borrowings | $ 0 |
Borrowing availability | 92 |
Outstanding letters of credit commitments | 7.8 |
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% |
Revolving Credit Facility [Member] | SOFR [Member] | |
Debt Obligations and Financing Arrangements [Abstract] | |
Interest rate floor | 0% |
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 Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Income Taxes [Abstract] | ||
Effective income tax rate | 23.80% | 24.80% |
Income tax expense | $ 14,456 | $ 10,234 |
Equity Incentive Plans, Equity
Equity Incentive Plans, Equity Incentive Plans (Details) | 3 Months Ended |
May 04, 2024 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) | 1,673,281 |
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] | 3 Months Ended |
May 04, 2024 $ / shares shares | |
Number of Options [Roll Forward] | |
Outstanding at beginning of period (in shares) | shares | 1,119,484 |
Granted (in shares) | shares | 120,830 |
Forfeited (in shares) | shares | (1,803) |
Exercised (in shares) | shares | (66,390) |
Outstanding at end of period (in shares) | shares | 1,172,121 |
Exercisable at end of period (in shares) | shares | 740,952 |
Weighted Average Exercise Price [Abstract] | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 56.71 |
Granted (in dollars per share) | $ / shares | 74.23 |
Forfeited (in dollars per share) | $ / shares | 77.84 |
Exercised (in dollars per share) | $ / shares | 38.39 |
Outstanding at end of period (in dollars per share) | $ / shares | 59.52 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 58.45 |
Weighted Average Remaining Contractual Term [Abstract] | |
Outstanding at end of period | 6 years 9 months 18 days |
Exercisable at end of period | 5 years 8 months 12 days |
Equity Incentive Plans, Weighte
Equity Incentive Plans, Weighted Average Assumptions (Details) - $ / shares | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Equity Incentive Plans [Abstract] | ||
Weighted average grant date fair value per option granted (in dollars per share) | $ 38.69 | $ 29.13 |
Risk-free interest rate | 4.28% | 3.36% |
Expected dividend yield | 0% | 0% |
Expected life | 6 years 3 months | 6 years 3 months |
Expected volatility | 47.63% | 47.18% |
Equity Incentive Plans, RSU Act
Equity Incentive Plans, RSU Activity (Details) - Restricted Stock Units [Member] | 3 Months Ended |
May 04, 2024 $ / shares shares | |
Equity Incentive Plans [Abstract] | |
Vesting period | 4 years |
Number of Shares [Roll Forward] | |
Non-vested at beginning of period (in shares) | shares | 350,804 |
Granted (in shares) | shares | 168,362 |
Forfeited (in shares) | shares | (3,087) |
Vested (in shares) | shares | (112,217) |
Non-vested at end of period (in shares) | shares | 403,862 |
Weighted Average Grant Date Fair Value [Abstract] | |
Non-vested at beginning of period (in dollars per share) | $ / shares | $ 53.94 |
Granted (in dollars per share) | $ / shares | 74.23 |
Forfeited (in dollars per share) | $ / shares | 54.16 |
Vested (in dollars per share) | $ / shares | 54.1 |
Non-vested at end of period (in dollars per share) | $ / shares | $ 62.35 |
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 | |
May 04, 2024 | Apr. 29, 2023 | |
Stock-Based Compensation Expense [Abstract] | ||
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 35.9 | |
Weighted average period to recognize stock-based compensation expense | 3 years | |
Selling, General and Administrative Expenses [Member] | ||
Stock-Based Compensation Expense [Abstract] | ||
Compensation expense | $ 3.1 | $ 2.9 |
Common Stock, Common Stock (Det
Common Stock, Common Stock (Details) | 3 Months Ended | ||
May 04, 2024 Vote / shares $ / shares shares | Feb. 03, 2024 $ / shares shares | Apr. 29, 2023 $ / 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 | ||||
May 04, 2024 | Apr. 29, 2023 | Nov. 30, 2021 | Mar. 16, 2021 | Dec. 15, 2020 | |
Share Repurchase Program [Abstract] | |||||
Shares repurchased | $ 25,007 | $ 12,280 | |||
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) | 336,934 | ||||
Shares repurchased | $ 25,000 | ||||
Remaining authorized repurchase of common stock | $ 60,600 |
Transactions with Affiliated _2
Transactions with Affiliated and Related Parties (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Related Party [Member] | Subsidiary of Hillman Solutions, Inc. [Member] | Purchase of Inventory [Member] | ||
Transactions with Related Parties [Abstract] | ||
Payments to related parties | $ 0 | $ 0.5 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - 99 Cents Only Stores [Member] $ in Millions | 1 Months Ended |
Jun. 06, 2024 USD ($) Property | |
Subsequent Events [Abstract] | |
Number of store locations acquired | 11 |
Purchase price | $ | $ 14.6 |
Number of owned properties acquired | 3 |
Number of leased properties acquired | 8 |