Cover Page
Cover Page - shares | 6 Months Ended | |
Jul. 30, 2023 | Aug. 23, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Period End Date | Jul. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38936 | |
Entity Registrant Name | CHEWY, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 90-1020167 | |
Entity Address, Address Line One | 7700 West Sunrise Boulevard | |
Entity Address, City or Town | Plantation | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33322 | |
City Area Code | 786 | |
Local Phone Number | 320-7111 | |
Title of 12(b) Security | Class A Common Stock, par value $0.01 per share | |
Trading Symbol | CHWY | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Fiscal Period Focus | Q2 | |
Fiscal Year Focus | 2023 | |
Entity Central Index Key | 0001766502 | |
Current Fiscal Year End Date | --01-28 | |
Common Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 119,141,916 | |
Common Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 311,188,356 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 30, 2023 | Jan. 29, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 457,103 | $ 330,441 |
Marketable securities | 448,323 | 346,944 |
Accounts receivable | 162,681 | 126,349 |
Inventories | 738,204 | 675,520 |
Prepaid expenses and other current assets | 48,080 | 41,067 |
Total current assets | 1,854,391 | 1,520,321 |
Property and equipment, net | 511,755 | 478,738 |
Operating lease right-of-use assets | 434,805 | 423,423 |
Goodwill | 39,442 | 39,442 |
Other non-current assets | 63,621 | 53,152 |
Total assets | 2,904,014 | 2,515,076 |
Current liabilities: | ||
Trade accounts payable | 1,119,316 | 1,030,882 |
Accrued expenses and other current liabilities | 880,072 | 738,467 |
Total current liabilities | 1,999,388 | 1,769,349 |
Operating lease liabilities | 488,767 | 471,765 |
Other long-term liabilities | 51,230 | 60,005 |
Total liabilities | 2,539,385 | 2,301,119 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value per share, 5,000,000 shares authorized, no shares issued and outstanding as of July 30, 2023 and January 29, 2023 | 0 | 0 |
Additional paid-in capital | 2,280,748 | 2,171,247 |
Accumulated deficit | (1,920,416) | (1,961,543) |
Total stockholders’ equity | 364,629 | 213,957 |
Total liabilities and stockholders’ equity | 2,904,014 | 2,515,076 |
Common Class A | ||
Stockholders’ equity: | ||
Common stock, value | 1,185 | 1,141 |
Common Class B | ||
Stockholders’ equity: | ||
Common stock, value | $ 3,112 | $ 3,112 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jul. 30, 2023 | Jan. 29, 2023 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common Class A | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 1,500,000,000 | 1,500,000,000 |
Common stock, issued (in shares) | 118,530,123 | 114,160,531 |
Common stock, outstanding (in shares) | 118,530,123 | 114,160,531 |
Common Class B | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 395,000,000 | 395,000,000 |
Common stock, issued (in shares) | 311,188,356 | 311,188,356 |
Common stock, outstanding (in shares) | 311,188,356 | 311,188,356 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,777,769 | $ 2,431,011 | $ 5,562,444 | $ 4,859,338 |
Cost of goods sold | 1,990,996 | 1,748,214 | 3,984,216 | 3,508,721 |
Gross profit | 786,773 | 682,797 | 1,578,228 | 1,350,617 |
Operating expenses: | ||||
Selling, general and administrative | 619,202 | 516,983 | 1,202,868 | 1,021,266 |
Advertising and marketing | 185,491 | 144,159 | 369,224 | 288,880 |
Total operating expenses | 804,693 | 661,142 | 1,572,092 | 1,310,146 |
(Loss) income from operations | (17,920) | 21,655 | 6,136 | 40,471 |
Interest income, net | 8,928 | 690 | 16,944 | 346 |
Other income, net | 29,242 | 0 | 20,354 | 0 |
Income before income tax provision | 20,250 | 22,345 | 43,434 | 40,817 |
Income tax provision | 1,304 | 0 | 2,307 | 0 |
Net income | $ 18,946 | $ 22,345 | $ 41,127 | $ 40,817 |
Earnings per share attributable to common Class A and Class B stockholders: | ||||
Basic (in dollars per share) | $ 0.04 | $ 0.05 | $ 0.10 | $ 0.10 |
Diluted (in dollars per share) | $ 0.04 | $ 0.05 | $ 0.10 | $ 0.10 |
Weighted-average common shares used in computing earnings per share: | ||||
Basic (in shares) | 428,618 | 421,690 | 427,735 | 421,048 |
Diluted (in shares) | 431,576 | 426,833 | 431,024 | 426,772 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Class A and Class B Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Balance at beginning of period (in shares) at Jan. 30, 2022 | 420,106 | |||
Balance at beginning of period at Jan. 30, 2022 | $ 14,736 | $ 4,201 | $ 2,021,310 | $ (2,010,775) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Share-based compensation expense | 64,171 | 64,171 | ||
Vesting of share-based compensation awards (in shares) | 2,501 | |||
Vesting of share-based compensation awards | 0 | $ 25 | (25) | |
Distribution to parent (in shares) | 93 | |||
Distribution to parent | 0 | $ 1 | (1) | |
Tax withholdings for share-based compensation awards (in shares) | (53) | |||
Tax withholdings for share-based compensation awards | (2,472) | $ (1) | (2,471) | |
Tax sharing agreement with related parties | 139 | 139 | ||
Net income | 40,817 | 40,817 | ||
Balance at end of period (in shares) at Jul. 31, 2022 | 422,647 | |||
Balance at end of period at Jul. 31, 2022 | 117,391 | $ 4,226 | 2,083,123 | (1,969,958) |
Balance at beginning of period (in shares) at May. 01, 2022 | 420,606 | |||
Balance at beginning of period at May. 01, 2022 | 58,610 | $ 4,206 | 2,046,707 | (1,992,303) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Share-based compensation expense | 38,377 | 38,377 | ||
Vesting of share-based compensation awards (in shares) | 1,948 | |||
Vesting of share-based compensation awards | 0 | $ 19 | (19) | |
Distribution to parent (in shares) | 93 | |||
Distribution to parent | 0 | $ 1 | (1) | |
Tax withholdings for share-based compensation awards | (4) | (4) | ||
Tax sharing agreement with related parties | (1,937) | (1,937) | ||
Net income | 22,345 | 22,345 | ||
Balance at end of period (in shares) at Jul. 31, 2022 | 422,647 | |||
Balance at end of period at Jul. 31, 2022 | 117,391 | $ 4,226 | 2,083,123 | (1,969,958) |
Balance at beginning of period (in shares) at Jan. 29, 2023 | 425,349 | |||
Balance at beginning of period at Jan. 29, 2023 | 213,957 | $ 4,253 | 2,171,247 | (1,961,543) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Share-based compensation expense | 114,549 | 114,549 | ||
Vesting of share-based compensation awards (in shares) | 4,276 | |||
Vesting of share-based compensation awards | 0 | $ 43 | (43) | |
Distribution to parent (in shares) | 93 | |||
Distribution to parent | 0 | $ 1 | (1) | |
Tax withholdings for share-based compensation awards | (5) | (5) | ||
Tax sharing agreement with related parties | (4,999) | (4,999) | ||
Net income | 41,127 | 41,127 | ||
Balance at end of period (in shares) at Jul. 30, 2023 | 429,718 | |||
Balance at end of period at Jul. 30, 2023 | 364,629 | $ 4,297 | 2,280,748 | (1,920,416) |
Balance at beginning of period (in shares) at Apr. 30, 2023 | 427,108 | |||
Balance at beginning of period at Apr. 30, 2023 | 282,365 | $ 4,271 | 2,217,456 | (1,939,362) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Share-based compensation expense | 65,996 | 65,996 | ||
Vesting of share-based compensation awards (in shares) | 2,517 | |||
Vesting of share-based compensation awards | 0 | $ 25 | (25) | |
Distribution to parent (in shares) | 93 | |||
Distribution to parent | 0 | $ 1 | (1) | |
Tax withholdings for share-based compensation awards | (5) | (5) | ||
Tax sharing agreement with related parties | (2,673) | (2,673) | ||
Net income | 18,946 | 18,946 | ||
Balance at end of period (in shares) at Jul. 30, 2023 | 429,718 | |||
Balance at end of period at Jul. 30, 2023 | $ 364,629 | $ 4,297 | $ 2,280,748 | $ (1,920,416) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 30, 2023 | Jul. 31, 2022 | |
Cash flows from operating activities | ||
Net income | $ 41,127 | $ 40,817 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 56,672 | 37,678 |
Share-based compensation expense | 114,549 | 64,171 |
Non-cash lease expense | 22,053 | 19,203 |
Change in fair value of equity warrants and investments | (20,244) | 0 |
Other | 793 | 604 |
Net change in operating assets and liabilities: | ||
Accounts receivable | (36,332) | (20,295) |
Inventories | (62,684) | (147,491) |
Prepaid expenses and other current assets | (16,860) | (13,861) |
Other non-current assets | (1,975) | 2,067 |
Trade accounts payable | 88,434 | 166,074 |
Accrued expenses and other current liabilities | 131,796 | (7,343) |
Operating lease liabilities | (11,045) | (9,592) |
Other long-term liabilities | 864 | (427) |
Net cash provided by operating activities | 307,148 | 131,605 |
Cash flows from investing activities | ||
Capital expenditures | (79,213) | (124,212) |
Cash paid for acquisition of business, net of cash acquired | (367) | 0 |
Purchases of marketable securities | (442,769) | 0 |
Proceeds from maturities of marketable securities | 350,000 | 0 |
Other | 0 | (1,400) |
Net cash used in investing activities | (172,349) | (125,612) |
Cash flows from financing activities | ||
(Payments for) proceeds from tax sharing agreement with related parties | (7,606) | 533 |
Payment of debt modification costs | (175) | 0 |
Principal repayments of finance lease obligations | (351) | (333) |
Payments for tax withholdings related to vesting of share-based compensation awards | (5) | (2,472) |
Net cash used in financing activities | (8,137) | (2,272) |
Net increase in cash and cash equivalents | 126,662 | 3,721 |
Cash and cash equivalents, as of beginning of period | 330,441 | 603,079 |
Cash and cash equivalents, as of end of period | $ 457,103 | $ 606,800 |
Description of Business
Description of Business | 6 Months Ended |
Jul. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Chewy, Inc. and its wholly-owned subsidiaries (collectively “Chewy” or the “Company”) is a pure play e-commerce business geared toward pet products and services for dogs, cats, fish, birds, small pets, horses, and reptiles. Chewy serves its customers through its retail website, www.chewy.com, and its mobile applications, and focuses on delivering exceptional customer service, competitive prices, outstanding convenience (including Chewy’s Autoship subscription program, fast shipping, and hassle-free returns), and a large selection of high-quality pet food, treats and supplies, and pet healthcare products. The Company is controlled by a consortium including private investment funds advised by BC Partners and its affiliates, La Caisse de dépôt et placement du Québec, affiliates of GIC Special Investments Pte Ltd, affiliates of StepStone Group LP, and funds advised by Longview Asset Management, LLC (collectively, the “Sponsors”). The Company was controlled by PetSmart LLC (“PetSmart”), a wholly-owned subsidiary of the Sponsors through February 11, 2021. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jul. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements and related notes include the accounts of Chewy, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. The unaudited condensed consolidated financial statements and notes thereto of Chewy, Inc. have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting and, therefore, omit or condense certain footnotes and other information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) as set forth in the Financial Accounting Standards Board’s (“FASB”) accounting standards codification (“ASC”). In the opinion of management, all adjustments necessary for a fair statement of the financial information, which are of a normal and recurring nature, have been made for the interim periods reported. Results of operations for the quarterly period ended July 30, 2023 are not necessarily indicative of the results for the entire fiscal year. The unaudited condensed consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2023 (“10-Q Report”) should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2023 (“10-K Report”). Fiscal Year The Company has a 52- or 53-week fiscal year ending each year on the Sunday that is closest to January 31 of that year. The Company’s 2023 fiscal year ends on January 28, 2024 and is a 52-week year. The Company’s 2022 fiscal year ended January 29, 2023 and was a 52-week year. Significant Accounting Policies Other than policies noted herein, there have been no significant changes from the significant accounting policies disclosed in Note 2 of the “Notes to Consolidated Financial Statements” included in the 10-K Report. Use of Estimates GAAP requires management to make certain estimates, judgments, and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates these estimates and judgments. Actual results could differ from those estimates. Key estimates relate primarily to determining the net realizable value and demand for inventory, useful lives associated with property and equipment and intangible assets, valuation allowances with respect to deferred tax assets, contingencies, self-insurance accruals, evaluation of sales tax positions, and the valuation and assumptions underlying share-based compensation and equity warrants. On an ongoing basis, management evaluates its estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities. Accrued Expenses and Other Current Liabilities The following table presents the components of accrued expenses and other current liabilities (in thousands): As of July 30, 2023 January 29, 2023 Outbound fulfillment $ 491,847 $ 369,661 Advertising and marketing 114,581 99,593 Payroll liabilities 71,318 66,799 Accrued expenses and other 202,326 202,414 Total accrued expenses and other current liabilities $ 880,072 $ 738,467 Stockholders’ Equity Conversion of Class B Common Stock On May 8, 2020, Buddy Chester Sub LLC, a wholly-owned subsidiary of the Sponsors, converted 17,584,098 shares of the Company’s Class B common stock into Class A common stock. On May 11, 2020, Buddy Chester Sub LLC entered into a variable forward purchase agreement (“the Contract”) to deliver up to 17,584,098 shares of the Company’s Class A common stock at the exchange date, with the number of shares to be issued based on the trading price of the Company’s common stock during a 20-day observation period. On each of May 15, 2023 and May 16, 2023, Buddy Chester Sub LLC settled its obligations under the Contract and delivered a total of 17,584,098 shares. Interest Income (Expense), net The Company generates interest income from its cash and cash equivalents and marketable securities and incurs interest expense from its borrowing facilities and finance leases. The following table provides additional information about the Company’s interest income (expense), net (in thousands): 13 Weeks Ended 26 Weeks Ended July 30, 2023 July 31, 2022 July 30, 2023 July 31, 2022 Interest income $ 9,824 $ 1,348 $ 18,702 $ 1,603 Interest expense (896) (658) (1,758) (1,257) Interest income, net $ 8,928 $ 690 $ 16,944 $ 346 Other Income (Expense), net The Company’s other income (expense), net consists of changes in the fair value of equity warrants and investments, foreign currency transaction gains and losses, and allowances for credit losses. The following table provides additional information about the Company’s other income (expense), net (in thousands): 13 Weeks Ended 26 Weeks Ended July 30, 2023 July 31, 2022 July 30, 2023 July 31, 2022 Change in fair value of equity warrants $ 29,192 $ — $ 20,258 $ — Foreign currency transaction gains 50 — 110 — Change in fair value of equity investments — — (14) — Other income, net $ 29,242 $ — $ 20,354 $ — Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements ASU 2022-04—Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. In September 2022, the FASB issued this Accounting Standards Update (“ASU”) which requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose the key terms of the programs and information about obligations outstanding at the end of the reporting period. This update became effective at the beginning of the Company’s 2023 fiscal year. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. Recently Issued Accounting Pronouncements ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. In June 2022, the FASB issued this ASU to clarify the guidance when measuring the fair value of an equity security subject to contractual sale restrictions that prohibit the sale of an equity security. This update is effective at the beginning of the Company’s 2024 fiscal year, with early adoption permitted. The Company does not believe the adoption of this standard will have a material impact on the Company’s condensed consolidated financial statements. |
Acquisitions
Acquisitions | 6 Months Ended |
Jul. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Petabyte Acquisition On October 23, 2022, the Company entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”) with Petabyte Technology Inc. (“Petabyte”), a Delaware corporation. Under the terms of the Merger Agreement, the Company and Petabyte effected a merger on November 7, 2022, and Petabyte became a wholly-owned subsidiary of the Company. Headquartered in Bellevue, Washington, Petabyte is a provider of cloud-based technology solutions to the veterinary sector and the acquisition is expected to further strengthen the Company’s pet healthcare product and service offering. The following table reconciles the estimated purchase price to the cash paid for the acquisition, net of cash acquired (in thousands): Estimated purchase price $ 43,281 Less: cash acquired 2,881 Cash paid for acquisition of business, net of cash acquired $ 40,400 The Petabyte transaction was accounted for as a business combination in accordance with ASC 805 “Business Combinations.” Assets acquired and liabilities assumed were recorded in the accompanying consolidated balance sheet at their estimated fair values, with the remaining unallocated purchase price recorded as goodwill. Goodwill represents the expected synergies and cost rationalization from the merger of operations as well as intangible assets that do not qualify for separate recognition such as an assembled workforce. The following table summarizes the assets acquired and liabilities assumed as of the acquisition date (in thousands): Assets acquired: Cash and cash equivalents $ 2,881 Accounts receivable 104 Goodwill 39,442 Identified intangible assets 1,510 Other current and non-current assets 318 Liabilities assumed: Other current and long-term liabilities (974) Estimated purchase price $ 43,281 Pro forma information for the Petabyte acquisition has not been provided as the impact was not material to the Company’s consolidated results of operations. Based on a preliminary allocation, in connection with this acquisition, the Company recorded goodwill of $39.4 million, none of which is anticipated to be deductible for tax purposes. The identified intangible assets consisted of $1.5 million of developed technology with an amortization period of 3.0 years. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jul. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1-Valuations based on quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2-Valuations based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3-Valuations based on unobservable inputs reflecting the Company’s assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. Cash equivalents are carried at cost, which approximates fair value and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Marketable securities are carried at fair value and are classified within Level 1 because they are valued using quoted market prices. Specific to marketable fixed income securities, the Company did not record any gross unrealized gains and losses as fair value approximates amortized cost. The Company did not record any credit losses during the thirteen and twenty-six weeks ended July 30, 2023. Further, as of July 30, 2023, the Company did not record an allowance for credit losses related to its fixed income securities. Equity investments in public companies that have readily determinable fair values are carried at fair value and are classified within Level 1 because they are valued using quoted market prices. Equity warrants are classified within Level 3 of the fair value hierarchy as they are valued based on observable and unobservable inputs reflecting the Company’s assumptions, consistent with reasonably available assumptions made by other market participants. The Company utilized certain valuation techniques, such as the Black-Scholes option-pricing model and the Monte Carlo simulation model, to determine the fair value of equity warrants. The application of these models requires the use of a number of complex assumptions based on unobservable inputs, including the expected term, expected equity volatility, discounts for lack of marketability, cash flow projections, and probability with respect to vesting requirements. The following table includes a summary of financial instruments measured at fair value as of July 30, 2023 (in thousands): Level 1 Level 2 Level 3 Cash $ 457,103 $ — $ — Money market funds — — — Commercial paper — — — Cash and cash equivalents 457,103 — — U.S. Treasury securities 448,260 — — Equity investments 63 — — Marketable securities 448,323 — — Equity warrants — — 42,240 Total financial instruments $ 905,426 $ — $ 42,240 The following table includes a summary of financial instruments measured at fair value as of January 29, 2023 (in thousands): Level 1 Level 2 Level 3 Cash $ 300,441 $ — $ — Money market funds 30,000 — — Cash and cash equivalents 330,441 — — U.S. Treasury securities 346,926 — — Equity investments 18 — — Marketable securities 346,944 — — Equity warrants — — 31,622 Total financial instruments $ 677,385 $ — $ 31,622 The following table summarizes the change in fair value for financial instruments using unobservable Level 3 inputs (in thousands): 26 Weeks Ended July 30, 2023 July 31, 2022 Beginning balance $ 31,622 $ — Change in fair value of equity warrants 10,618 — Ending balance $ 42,240 $ — As of July 30, 2023 and January 29, 2023, the deferred credit subject to vesting requirements recognized within other long-term liabilities in exchange for the equity warrants was $35.2 million and $45.0 million, respectively. The following table presents quantitative information about Level 3 significant unobservable inputs used in the fair value measurement of the equity warrants as of July 30, 2023 (in thousands): Range Fair Value Valuation Techniques Unobservable Input Min Max Weighted Average Equity warrants $42,240 Black-Scholes and Monte Carlo Probability of vesting 0% 99% 78% Equity volatility 35% 85% 80% |
Property and Equipment, net
Property and Equipment, net | 6 Months Ended |
Jul. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net The following is a summary of property and equipment, net (in thousands): As of July 30, 2023 January 29, 2023 Furniture, fixtures and equipment $ 176,907 $ 162,296 Computer equipment 72,141 67,535 Internal-use software 158,067 138,123 Leasehold improvements 300,951 245,700 Construction in progress 84,193 93,534 792,259 707,188 Less: accumulated depreciation and amortization 280,504 228,450 Property and equipment, net $ 511,755 $ 478,738 Internal-use software includes labor and license costs associated with software development for internal use. As of July 30, 2023 and January 29, 2023, the Company had accumulated amortization related to internal-use software of $70.2 million and $56.5 million, respectively. Construction in progress is stated at cost, which includes the cost of construction and other directly attributable costs. No provision for depreciation is made on construction in progress until the relevant assets are completed and put into use. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters Various legal claims arise from time to time in the normal course of business. In assessing loss contingencies related to legal proceedings that are pending against the Company, or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. The Company believes that it has adequately accrued for the potential impact of loss contingencies that are probable and reasonably estimable. The Company does not believe that the ultimate resolution of any matters to which it is presently a party will have a material adverse effect on the Company’s results of operations, financial condition or cash flows. However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect on the Company’s financial condition, results of operations or cash flows. International Business Machines Corporation (“IBM”) previously alleged that the Company is infringing four of its patents. On February 15, 2021, the Company filed a declaratory judgment action in the United States District Court for the Southern District of New York (the “District Court”) against IBM seeking the District Court’s declaration that the Company is not infringing the four asserted IBM patents. On April 19, 2021, IBM filed an answer with counterclaims seeking unspecified damages, including a request that the amount of compensatory damages be trebled, injunctive relief and costs and reasonable attorneys’ fees. On May 24, 2021, IBM filed an amended complaint that included an additional assertion that the Company is infringing a fifth IBM patent. On October 8, 2021, the parties had a claim construction hearing and on November 9, 2021, the claim construction rulings resulted in one of the five patents (the “‘414 patent”) being eliminated from the case. The parties filed their motions for summary judgment which were fully briefed on February 24, 2022. On April 11, 2022, the District Court granted the Company’s motions for summary judgment that the Company did not infringe three of the patents and that the fourth patent is invalid. On April 29, 2022, IBM filed a notice of appeal in the United States Court of Appeals for the Federal Circuit to appeal the District Court’s judgment of non-infringement of certain of the patents. The appeal is fully briefed, and oral argument is expected to take place on October 4, 2023. On May 3, 2023, IBM sent the Company a letter indicating that the ‘414 patent that was invalidated by the District Court was reexamined by the U.S. Patent & Trademark Office and a reexamination certificate was issued. As a result, IBM is asserting that the Company infringes the new claims of the ‘414 patent. The Company continues to deny this recent allegation related to the ‘414 patent and all other allegations of any infringement and intends to vigorously defend itself in this matter. |
Debt
Debt | 6 Months Ended |
Jul. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt ABL Credit Facility The Company has a senior secured asset-based credit facility (the “ABL Credit Facility”) which matures on August 27, 2026 and provides for non-amortizing revolving loans in an aggregate principal amount of up to $800 million, subject to a borrowing base comprised of, among other things, inventory and sales receivables (subject to certain reserves). The ABL Credit Facility provides the right to request incremental commitments and add incremental asset-based revolving loan facilities in an aggregate principal amount of up to $250 million, subject to customary conditions. The Company is required to pay a commitment fee of 0.25% per annum with respect to the undrawn portion of the commitments, which is generally based on average daily usage of the facility. Based on the Company’s borrowing base as of July 30, 2023, which is reduced by standby letters of credit, the Company had $749.6 million of borrowing capacity under the ABL Credit Facility. As of July 30, 2023 and January 29, 2023, the Company had no outstanding borrowings under the ABL Credit Facility, respectively. |
Leases
Leases | 6 Months Ended |
Jul. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company leases all of its fulfillment and customer service centers and corporate offices under non-cancelable operating lease agreements. The terms of the Company’s real estate leases generally range from 5 to 15 years and typically allow for the leases to be renewed for up to three additional five-year terms. Fulfillment and customer service centers and corporate office leases expire at various dates through 2034, excluding renewal options. The Company also leases certain equipment under operating and finance leases. The terms of equipment leases generally range from 3 to 5 years and do not contain renewal options. These leases expire at various dates through 2025. The Company’s finance leases as of July 30, 2023 and January 29, 2023 were not material and were included in property and equipment, net, on the Company’s condensed consolidated balance sheets. The table below presents the operating lease-related assets and liabilities recorded on the condensed consolidated balance sheets (in thousands): As of Leases Balance Sheet Classification July 30, 2023 January 29, 2023 Assets Operating Operating lease right-of-use assets $ 434,805 $ 423,423 Total operating lease assets $ 434,805 $ 423,423 Liabilities Current Operating Accrued expenses and other current liabilities $ 28,522 $ 27,611 Non-current Operating Operating lease liabilities 488,767 471,765 Total operating lease liabilities $ 517,289 $ 499,376 For the twenty-six weeks ended July 30, 2023 and July 31, 2022, assets acquired in exchange for new operating lease liabilities were $50.6 million and $57.1 million, respectively. Lease expense primarily relates to operating lease costs. Lease expense for the thirteen weeks ended July 30, 2023 and July 31, 2022 was $26.2 million and $23.3 million, respectively. Lease expense for the twenty-six weeks ended July 30, 2023 and July 31, 2022 was $52.3 million and $44.6 million, respectively. The aforementioned lease expense was included within selling, general and administrative expenses in the condensed consolidated statements of operations. Cash flows used in operating activities related to operating leases were approximately $45.1 million and $38.2 million for the twenty-six weeks ended July 30, 2023 and July 31, 2022, respectively. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation 2022 Omnibus Incentive Plan In July 2022, the Company’s stockholders approved the Chewy, Inc. 2022 Omnibus Incentive Plan (the “2022 Plan”) replacing the Chewy, Inc. 2019 Omnibus Incentive Plan (the “2019 Plan”). The 2022 Plan became effective on July 14, 2022 and allows for the issuance of up to 40.0 million shares of Class A common stock and 1.0 million shares for new grants rolled over from the 2019 Plan. No awards may be granted under the 2022 Plan after July 2032. The 2022 Plan provides for grants of: (i) options, including incentive stock options and non-qualified stock options, (ii) restricted stock units, (iii) other share-based awards, including share appreciation rights, phantom stock, restricted shares, performance shares, deferred share units, and share-denominated performance units, (iv) cash awards, (v) substitute awards, and (vi) dividend equivalents (collectively, the “awards”). The awards may be granted to (i) the Company’s employees, consultants, and non-employee directors, (ii) employees of the Company’s affiliates and subsidiaries, and (iii) consultants of the Company’s subsidiaries. Service and Performance-Based Awards The Company granted restricted stock units which vested upon satisfaction of both service-based vesting conditions and company performance-based vesting conditions (“PRSUs”), subject to the employee’s continued employment with the Company through the applicable vesting date. The Company recorded share-based compensation expense for PRSUs over the requisite service period and accounted for forfeitures as they occur. Service and Performance-Based Awards Activity The following table summarizes the activity related to the Company’s PRSUs for the twenty-six weeks ended July 30, 2023 (in thousands, except for weighted-average grant date fair value): Number of PRSUs Weighted-Average Grant Date Fair Value Unvested and outstanding as of January 29, 2023 2,206 $ 36.22 Granted 232 $ 35.71 Vested (1,825) $ 36.31 Forfeited (184) $ 37.19 Unvested and outstanding as of July 30, 2023 429 $ 35.14 The following table summarizes the weighted average grant-date fair value of PRSUs granted and total fair value of PRSUs vested for the periods presented: 26 Weeks Ended July 30, 2023 July 31, 2022 Weighted average grant-date fair value of PRSUs $ 35.71 $ 43.59 Total fair value of vested PRSUs (in millions) $ 72.2 $ 58.5 As of July 30, 2023, total unrecognized compensation expense related to unvested PRSUs was $8.8 million and is expected to be recognized over a weighted-average expected performance period of 2.3 years. During the twenty-six weeks ended July 30, 2023 and July 31, 2022, vesting occurred for 93,309 PRSUs, respectively, that were previously granted to an employee of PetSmart. For accounting purposes, the issuance of Class A common stock upon vesting of these PRSUs is treated as a distribution to a parent entity because both the Company and PetSmart are controlled by affiliates of BC Partners. The fair value for PRSUs with a Company performance-based vesting condition is established based on the market price of the Company’s Class A common stock on the date of grant. Service-Based Awards The Company granted restricted stock units with service-based vesting conditions (“RSUs”) which vested subject to the employee’s continued employment with the Company through the applicable vesting date. The Company recorded share-based compensation expense for RSUs on a straight-line basis over the requisite service period and accounted for forfeitures as they occur. Service-Based Awards Activity The following table summarizes the activity related to the Company’s RSUs for the twenty-six weeks ended July 30, 2023 (in thousands, except for weighted-average grant date fair value): Number of RSUs Weighted-Average Grant Date Fair Value Unvested and outstanding as of January 29, 2023 10,813 $ 45.56 Granted 10,068 $ 35.52 Vested (2,553) $ 45.61 Forfeited (1,041) $ 41.52 Unvested and outstanding as of July 30, 2023 17,287 $ 39.95 The following table summarizes the weighted average grant-date fair value of RSUs granted and total fair value of RSUs vested for the periods presented: 26 Weeks Ended July 30, 2023 July 31, 2022 Weighted average grant-date fair value of RSUs $ 35.52 $ 42.79 Total fair value of vested RSUs (in millions) $ 106.1 $ 22.3 As of July 30, 2023, total unrecognized compensation expense related to unvested RSUs was $579.1 million and is expected to be recognized over a weighted-average expected performance period of 2.9 years. The fair value for RSUs is established based on the market price of the Company’s Class A common stock on the date of grant. As of July 30, 2023, there were 28.6 million additional shares of Class A common stock reserved for future issuance under the 2022 Plan. Share-Based Compensation Expense Share-based compensation expense is included within selling, general and administrative expenses in the condensed consolidated statements of operations. The Company recognized share-based compensation expense as follows (in thousands): 13 Weeks Ended 26 Weeks Ended July 30, 2023 July 31, 2022 July 30, 2023 July 31, 2022 PRSUs $ 1,178 $ 3,559 $ (222) $ 8,198 RSUs 64,818 34,818 114,771 55,973 Total share-based compensation expense $ 65,996 $ 38,377 $ 114,549 $ 64,171 |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Chewy is subject to taxation in the U.S. and various state, local, and foreign jurisdictions. Income taxes as presented in the Company’s condensed consolidated financial statements have been prepared based on Chewy’s separate return method. The Company had a current income tax provision during the thirteen and twenty-six weeks ended July 30, 2023 of $1.3 million and $2.3 million, respectively. The Company did not have a current or deferred provision for income taxes for any taxing jurisdiction during the thirteen and twenty-six weeks ended July 31, 2022. Additionally, the Company maintained a full valuation allowance on its net deferred tax assets. Concurrent with its initial public offering during the fiscal year ended February 2, 2020, the Company, PetSmart, and Argos Intermediate Holdco I Inc. (“Argos Holdco”) entered into a tax sharing agreement which governs the respective rights, responsibilities, and obligations of the Company, PetSmart, and Argos Holdco with respect to tax matters, including taxes attributable to PetSmart, entitlement to refunds, allocation of tax attributes, preparation of tax returns, certain tax elections, control of tax contests and other tax matters regarding U.S. federal, state, and local income taxes. During the twenty-six weeks ended July 30, 2023, and July 31, 2022, the Company paid $7.6 million and collected $0.5 million, respectively, pursuant to the tax sharing agreement. The tax sharing agreement was effectively terminated for federal income taxes upon tax deconsolidation with PetSmart, however, there may be future settlements upon final adjustment to the consolidated federal tax returns. The tax sharing agreement remains in effect for certain states in which the Company continues to file with Argos Holdco. As of July 30, 2023 and January 29, 2023, the Company had a payable related to the tax sharing agreement of $2.7 million and $5.3 million, respectively. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jul. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per ShareBasic and diluted earnings per share attributable to the Company’s common stockholders are presented using the two-class method required for participating securities. Under the two-class method, net income attributable to the Company’s common stockholders is determined by allocating undistributed earnings between common stock and participating securities. Undistributed earnings for the periods presented are calculated as net income less distributed earnings. Undistributed earnings are allocated proportionally to the Company’s common Class A and Class B stockholders as both classes are entitled to share equally, on a per share basis, in dividends and other distributions. Basic and diluted earnings per share are calculated by dividing net income attributable to the Company’s common stockholders by the weighted-average shares outstanding during the period. The following table sets forth basic and diluted earnings per share attributable to the Company’s common stockholders for the periods presented (in thousands, except per share data): 13 Weeks Ended 26 Weeks Ended July 30, 2023 July 31, 2022 July 30, 2023 July 31, 2022 Basic and diluted earnings per share Numerator Earnings attributable to common Class A and Class B stockholders $ 18,946 $ 22,345 $ 41,127 $ 40,817 Denominator Weighted-average common shares used in computing earnings per share: Basic 428,618 421,690 427,735 421,048 Effect of dilutive stock-based awards 2,958 5,143 3,289 5,724 Diluted 431,576 426,833 431,024 426,772 Anti-dilutive stock-based awards excluded from diluted common shares 5,918 7,388 5,147 4,528 Earnings per share attributable to common Class A and Class B stockholders: Basic $ 0.04 $ 0.05 $ 0.10 $ 0.10 Diluted $ 0.04 $ 0.05 $ 0.10 $ 0.10 |
Certain Relationships and Relat
Certain Relationships and Related Party Transactions | 6 Months Ended |
Jul. 30, 2023 | |
Related Party Transactions [Abstract] | |
Certain Relationships and Related Party Transactions | Certain Relationships and Related Party Transactions Certain of the Company’s healthcare operations are conducted through a wholly-owned subsidiary of PetSmart for which the Company and PetSmart entered into a services agreement, which provides for the payment of a management fee due from PetSmart. The Company recognized $2.5 million and $4.5 million during the thirteen and twenty-six weeks ended July 30, 2023, respectively, within net sales in the condensed consolidated statements of operations for the services provided compared to $1.8 million and $3.1 million during the thirteen and twenty-six weeks ended July 31, 2022, respectively. As of July 30, 2023 and January 29, 2023, the Company had a net payable to PetSmart of $2.5 million and $4.9 million, respectively, which was included in accrued expenses and other current liabilities on the Company’s condensed consolidated balance sheets. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 18,946 | $ 22,345 | $ 41,127 | $ 40,817 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jul. 30, 2023 | |
Trading Arrangements, by Individual | |
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 Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements and related notes include the accounts of Chewy, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. The unaudited condensed consolidated financial statements and notes thereto of Chewy, Inc. have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting and, therefore, omit or condense certain footnotes and other information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) as set forth in the Financial Accounting Standards Board’s (“FASB”) accounting standards codification (“ASC”). In the opinion of management, all adjustments necessary for a fair statement of the financial information, which are of a normal and recurring nature, have been made for the interim periods reported. Results of operations for the quarterly period ended July 30, 2023 are not necessarily indicative of the results for the entire fiscal year. The unaudited condensed consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2023 (“10-Q Report”) should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2023 (“10-K Report”). |
Fiscal Year | Fiscal Year The Company has a 52- or 53-week fiscal year ending each year on the Sunday that is closest to January 31 of that year. The Company’s 2023 fiscal year ends on January 28, 2024 and is a 52-week year. The Company’s 2022 fiscal year ended January 29, 2023 and was a 52-week year. |
Use of Estimates | Use of Estimates GAAP requires management to make certain estimates, judgments, and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates these estimates and judgments. Actual results could differ from those estimates. |
Interest Income (Expense), net | Interest Income (Expense), netThe Company generates interest income from its cash and cash equivalents and marketable securities and incurs interest expense from its borrowing facilities and finance leases. |
Other Income (Expense), net | Other Income (Expense), netThe Company’s other income (expense), net consists of changes in the fair value of equity warrants and investments, foreign currency transaction gains and losses, and allowances for credit losses. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements ASU 2022-04—Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. In September 2022, the FASB issued this Accounting Standards Update (“ASU”) which requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose the key terms of the programs and information about obligations outstanding at the end of the reporting period. This update became effective at the beginning of the Company’s 2023 fiscal year. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. Recently Issued Accounting Pronouncements ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. In June 2022, the FASB issued this ASU to clarify the guidance when measuring the fair value of an equity security subject to contractual sale restrictions that prohibit the sale of an equity security. This update is effective at the beginning of the Company’s 2024 fiscal year, with early adoption permitted. The Company does not believe the adoption of this standard will have a material impact on the Company’s condensed consolidated financial statements. |
Fair Value of Financial Instruments | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1-Valuations based on quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2-Valuations based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3-Valuations based on unobservable inputs reflecting the Company’s assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. Cash equivalents are carried at cost, which approximates fair value and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Marketable securities are carried at fair value and are classified within Level 1 because they are valued using quoted market prices. Specific to marketable fixed income securities, the Company did not record any gross unrealized gains and losses as fair value approximates amortized cost. The Company did not record any credit losses during the thirteen and twenty-six weeks ended July 30, 2023. Further, as of July 30, 2023, the Company did not record an allowance for credit losses related to its fixed income securities. Equity investments in public companies that have readily determinable fair values are carried at fair value and are classified within Level 1 because they are valued using quoted market prices. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jul. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | The following table presents the components of accrued expenses and other current liabilities (in thousands): As of July 30, 2023 January 29, 2023 Outbound fulfillment $ 491,847 $ 369,661 Advertising and marketing 114,581 99,593 Payroll liabilities 71,318 66,799 Accrued expenses and other 202,326 202,414 Total accrued expenses and other current liabilities $ 880,072 $ 738,467 |
Schedule of Interest Income and Expense | The following table provides additional information about the Company’s interest income (expense), net (in thousands): 13 Weeks Ended 26 Weeks Ended July 30, 2023 July 31, 2022 July 30, 2023 July 31, 2022 Interest income $ 9,824 $ 1,348 $ 18,702 $ 1,603 Interest expense (896) (658) (1,758) (1,257) Interest income, net $ 8,928 $ 690 $ 16,944 $ 346 |
Schedule of Other Nonoperating Income (Expense) | The following table provides additional information about the Company’s other income (expense), net (in thousands): 13 Weeks Ended 26 Weeks Ended July 30, 2023 July 31, 2022 July 30, 2023 July 31, 2022 Change in fair value of equity warrants $ 29,192 $ — $ 20,258 $ — Foreign currency transaction gains 50 — 110 — Change in fair value of equity investments — — (14) — Other income, net $ 29,242 $ — $ 20,354 $ — |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jul. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Estimated Purchase Price, Net of Cash Acquired | The following table reconciles the estimated purchase price to the cash paid for the acquisition, net of cash acquired (in thousands): Estimated purchase price $ 43,281 Less: cash acquired 2,881 Cash paid for acquisition of business, net of cash acquired $ 40,400 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the assets acquired and liabilities assumed as of the acquisition date (in thousands): Assets acquired: Cash and cash equivalents $ 2,881 Accounts receivable 104 Goodwill 39,442 Identified intangible assets 1,510 Other current and non-current assets 318 Liabilities assumed: Other current and long-term liabilities (974) Estimated purchase price $ 43,281 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jul. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table includes a summary of financial instruments measured at fair value as of July 30, 2023 (in thousands): Level 1 Level 2 Level 3 Cash $ 457,103 $ — $ — Money market funds — — — Commercial paper — — — Cash and cash equivalents 457,103 — — U.S. Treasury securities 448,260 — — Equity investments 63 — — Marketable securities 448,323 — — Equity warrants — — 42,240 Total financial instruments $ 905,426 $ — $ 42,240 The following table includes a summary of financial instruments measured at fair value as of January 29, 2023 (in thousands): Level 1 Level 2 Level 3 Cash $ 300,441 $ — $ — Money market funds 30,000 — — Cash and cash equivalents 330,441 — — U.S. Treasury securities 346,926 — — Equity investments 18 — — Marketable securities 346,944 — — Equity warrants — — 31,622 Total financial instruments $ 677,385 $ — $ 31,622 |
Summary of Changes in Fair Value for Financial Instruments Using Unobservable Level 3 Inputs | The following table summarizes the change in fair value for financial instruments using unobservable Level 3 inputs (in thousands): 26 Weeks Ended July 30, 2023 July 31, 2022 Beginning balance $ 31,622 $ — Change in fair value of equity warrants 10,618 — Ending balance $ 42,240 $ — |
Summary of Level 3 Significant Unobservable Inputs | The following table presents quantitative information about Level 3 significant unobservable inputs used in the fair value measurement of the equity warrants as of July 30, 2023 (in thousands): Range Fair Value Valuation Techniques Unobservable Input Min Max Weighted Average Equity warrants $42,240 Black-Scholes and Monte Carlo Probability of vesting 0% 99% 78% Equity volatility 35% 85% 80% |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 6 Months Ended |
Jul. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, net | The following is a summary of property and equipment, net (in thousands): As of July 30, 2023 January 29, 2023 Furniture, fixtures and equipment $ 176,907 $ 162,296 Computer equipment 72,141 67,535 Internal-use software 158,067 138,123 Leasehold improvements 300,951 245,700 Construction in progress 84,193 93,534 792,259 707,188 Less: accumulated depreciation and amortization 280,504 228,450 Property and equipment, net $ 511,755 $ 478,738 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 30, 2023 | |
Leases [Abstract] | |
Schedule of Operating Lease-related Assets and Liabilities | The table below presents the operating lease-related assets and liabilities recorded on the condensed consolidated balance sheets (in thousands): As of Leases Balance Sheet Classification July 30, 2023 January 29, 2023 Assets Operating Operating lease right-of-use assets $ 434,805 $ 423,423 Total operating lease assets $ 434,805 $ 423,423 Liabilities Current Operating Accrued expenses and other current liabilities $ 28,522 $ 27,611 Non-current Operating Operating lease liabilities 488,767 471,765 Total operating lease liabilities $ 517,289 $ 499,376 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jul. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Service and Performance Based-Awards Activity | The following table summarizes the activity related to the Company’s PRSUs for the twenty-six weeks ended July 30, 2023 (in thousands, except for weighted-average grant date fair value): Number of PRSUs Weighted-Average Grant Date Fair Value Unvested and outstanding as of January 29, 2023 2,206 $ 36.22 Granted 232 $ 35.71 Vested (1,825) $ 36.31 Forfeited (184) $ 37.19 Unvested and outstanding as of July 30, 2023 429 $ 35.14 The following table summarizes the activity related to the Company’s RSUs for the twenty-six weeks ended July 30, 2023 (in thousands, except for weighted-average grant date fair value): Number of RSUs Weighted-Average Grant Date Fair Value Unvested and outstanding as of January 29, 2023 10,813 $ 45.56 Granted 10,068 $ 35.52 Vested (2,553) $ 45.61 Forfeited (1,041) $ 41.52 Unvested and outstanding as of July 30, 2023 17,287 $ 39.95 |
Summary of Weighted Average Grant-Date Fair Value and Total Fair Value of Service and Performance Based-Awards Activity | The following table summarizes the weighted average grant-date fair value of PRSUs granted and total fair value of PRSUs vested for the periods presented: 26 Weeks Ended July 30, 2023 July 31, 2022 Weighted average grant-date fair value of PRSUs $ 35.71 $ 43.59 Total fair value of vested PRSUs (in millions) $ 72.2 $ 58.5 The following table summarizes the weighted average grant-date fair value of RSUs granted and total fair value of RSUs vested for the periods presented: 26 Weeks Ended July 30, 2023 July 31, 2022 Weighted average grant-date fair value of RSUs $ 35.52 $ 42.79 Total fair value of vested RSUs (in millions) $ 106.1 $ 22.3 |
Schedule of Share-based Compensation Expense | The Company recognized share-based compensation expense as follows (in thousands): 13 Weeks Ended 26 Weeks Ended July 30, 2023 July 31, 2022 July 30, 2023 July 31, 2022 PRSUs $ 1,178 $ 3,559 $ (222) $ 8,198 RSUs 64,818 34,818 114,771 55,973 Total share-based compensation expense $ 65,996 $ 38,377 $ 114,549 $ 64,171 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jul. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net (Loss) Income Per Share | The following table sets forth basic and diluted earnings per share attributable to the Company’s common stockholders for the periods presented (in thousands, except per share data): 13 Weeks Ended 26 Weeks Ended July 30, 2023 July 31, 2022 July 30, 2023 July 31, 2022 Basic and diluted earnings per share Numerator Earnings attributable to common Class A and Class B stockholders $ 18,946 $ 22,345 $ 41,127 $ 40,817 Denominator Weighted-average common shares used in computing earnings per share: Basic 428,618 421,690 427,735 421,048 Effect of dilutive stock-based awards 2,958 5,143 3,289 5,724 Diluted 431,576 426,833 431,024 426,772 Anti-dilutive stock-based awards excluded from diluted common shares 5,918 7,388 5,147 4,528 Earnings per share attributable to common Class A and Class B stockholders: Basic $ 0.04 $ 0.05 $ 0.10 $ 0.10 Diluted $ 0.04 $ 0.05 $ 0.10 $ 0.10 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Jul. 30, 2023 | Jan. 29, 2023 |
Accounting Policies [Abstract] | ||
Outbound fulfillment | $ 491,847 | $ 369,661 |
Advertising and marketing | 114,581 | 99,593 |
Payroll liabilities | 71,318 | 66,799 |
Accrued expenses and other | 202,326 | 202,414 |
Total accrued expenses and other current liabilities | $ 880,072 | $ 738,467 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Narrative (Details) - Buddy Chester Sub LLC | May 16, 2023 shares | May 11, 2020 d shares | May 08, 2020 shares |
Common Class B | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Conversion of stock (in shares) | (17,584,098) | ||
Common Class A | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Conversion of stock (in shares) | 17,584,098 | 17,584,098 | |
Forward purchase agreement (in shares) | 17,584,098 | ||
Convertible, threshold trading days | d | 20 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Schedule of Interest Income and Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | |
Accounting Policies [Abstract] | ||||
Interest income | $ 9,824 | $ 1,348 | $ 18,702 | $ 1,603 |
Interest expense | (896) | (658) | (1,758) | (1,257) |
Interest income, net | $ 8,928 | $ 690 | $ 16,944 | $ 346 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - Schedule of Other Nonoperating Income (Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | |
Accounting Policies [Abstract] | ||||
Change in fair value of equity warrants | $ 29,192 | $ 0 | $ 20,258 | $ 0 |
Foreign currency transaction gains | 50 | 0 | 110 | 0 |
Change in fair value of equity investments | 0 | 0 | (14) | 0 |
Other income, net | $ 29,242 | $ 0 | $ 20,354 | $ 0 |
Acquisitions - Schedule of Esti
Acquisitions - Schedule of Estimated Purchase Price, Net of Cash Acquired (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Nov. 07, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | |
Business Acquisition [Line Items] | |||
Cash paid for acquisition of business, net of cash acquired | $ 367 | $ 0 | |
Petabyte Technology Inc. | |||
Business Acquisition [Line Items] | |||
Estimated purchase price | $ 43,281 | ||
Less: cash acquired | 2,881 | ||
Cash paid for acquisition of business, net of cash acquired | $ 40,400 |
Acquisitions - Schedule of Reco
Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jul. 30, 2023 | Jan. 29, 2023 | Nov. 07, 2022 |
Assets acquired: | |||
Goodwill | $ 39,442 | $ 39,442 | |
Petabyte Technology Inc. | |||
Assets acquired: | |||
Cash and cash equivalents | $ 2,881 | ||
Accounts receivable | 104 | ||
Goodwill | 39,442 | ||
Identified intangible assets | 1,510 | ||
Other current and non-current assets | 318 | ||
Liabilities assumed: | |||
Other current and long-term liabilities | (974) | ||
Estimated purchase price | $ 43,281 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Jul. 30, 2023 | Jan. 29, 2023 | Nov. 07, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 39,442 | $ 39,442 | |
Petabyte Technology Inc. | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 39,442 | ||
Identified intangible assets | 1,510 | ||
Petabyte Technology Inc. | Developed technology | |||
Business Acquisition [Line Items] | |||
Identified intangible assets | $ 1,500 | ||
Useful life | 3 years |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jul. 30, 2023 | Jul. 30, 2023 | Jan. 29, 2023 | |
Fair Value Disclosures [Abstract] | |||
Allowance for credit loss, period increase (decrease) | $ 0 | $ 0 | |
Allowance for credit loss | 0 | 0 | |
Deferred credits | $ 35,200,000 | $ 35,200,000 | $ 45,000,000 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jul. 30, 2023 | Jan. 29, 2023 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 457,103 | $ 330,441 |
Equity investments | 63 | 18 |
Marketable securities | 448,323 | 346,944 |
Equity warrants | 0 | 0 |
Total financial instruments | 905,426 | 677,385 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Equity investments | 0 | 0 |
Marketable securities | 0 | 0 |
Equity warrants | 0 | 0 |
Total financial instruments | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Equity investments | 0 | 0 |
Marketable securities | 0 | 0 |
Equity warrants | 42,240 | 31,622 |
Total financial instruments | 42,240 | 31,622 |
U.S. Treasury securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. Treasury securities | 448,260 | 346,926 |
U.S. Treasury securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. Treasury securities | 0 | 0 |
U.S. Treasury securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. Treasury securities | 0 | 0 |
Cash | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 457,103 | 300,441 |
Cash | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Cash | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 30,000 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | $ 0 |
Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 0 |
Financial Instruments - Summary
Financial Instruments - Summary of Changes in Fair Value of Financial Instruments Using Unobservable Level 3 Inputs (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 30, 2023 | Jul. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 31,622 | $ 0 |
Change in fair value of equity warrants | 10,618 | 0 |
Ending balance | $ 42,240 | $ 0 |
Financial Instruments - Summa_2
Financial Instruments - Summary of Level 3 Significant Unobservable Inputs for Fair Value of Equity Warrants (Details) - Level 3 - Fair Value, Recurring $ in Thousands | Jul. 30, 2023 USD ($) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Equity warrants | $ 42,240 |
Min | Probability of vesting | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Equity warrants, measurement input | 0 |
Min | Equity volatility | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Equity warrants, measurement input | 0.35 |
Max | Probability of vesting | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Equity warrants, measurement input | 0.99 |
Max | Equity volatility | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Equity warrants, measurement input | 0.85 |
Weighted Average | Probability of vesting | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Equity warrants, measurement input | 0.78 |
Weighted Average | Equity volatility | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Equity warrants, measurement input | 0.80 |
Property and Equipment, net - S
Property and Equipment, net - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jul. 30, 2023 | Jan. 29, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 792,259 | $ 707,188 |
Less: accumulated depreciation and amortization | 280,504 | 228,450 |
Property and equipment, net | 511,755 | 478,738 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 176,907 | 162,296 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 72,141 | 67,535 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 158,067 | 138,123 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 300,951 | 245,700 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 84,193 | $ 93,534 |
Property and Equipment, net - N
Property and Equipment, net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | Jan. 29, 2023 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $ 19.6 | $ 13.9 | $ 40.9 | $ 26 | |
Internal-use software | |||||
Property, Plant and Equipment [Line Items] | |||||
Accumulated amortization | 70.2 | 70.2 | $ 56.5 | ||
Amortization expense | $ 7.2 | $ 5.5 | $ 13.8 | $ 9.9 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - patent | Apr. 11, 2022 | Oct. 08, 2021 | Feb. 15, 2021 |
Loss Contingencies [Line Items] | |||
Number of patents allegedly infringed | 5 | ||
Number of patents found not infringed | 3 | 1 | |
Pending litigation | |||
Loss Contingencies [Line Items] | |||
Number of patents allegedly infringed | 4 |
Debt (Details)
Debt (Details) - Line of Credit - Revolving Credit Facility - USD ($) | 6 Months Ended | |
Jul. 30, 2023 | Jan. 29, 2023 | |
Line of Credit Facility [Line Items] | ||
Aggregate principal balance | $ 800,000,000 | |
Additional aggregate principal increase limit (up to) | $ 250,000,000 | |
Commitment fee, percentage | 0.25% | |
Current borrowing capacity | $ 749,600,000 | |
Outstanding borrowings | $ 0 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2023 USD ($) renewalOption | Jul. 31, 2022 USD ($) | Jul. 30, 2023 USD ($) renewalOption | Jul. 31, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Assets acquired in exchange for new operating lease liabilities | $ 50.6 | $ 57.1 | ||
Lease expense | $ 26.2 | $ 23.3 | 52.3 | 44.6 |
Operating lease payments | $ 45.1 | $ 38.2 | ||
Real Estate | ||||
Lessee, Lease, Description [Line Items] | ||||
Number of renewal options | renewalOption | 3 | 3 | ||
Renewal term | 5 years | 5 years | ||
Real Estate | Min | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 5 years | 5 years | ||
Real Estate | Max | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 15 years | 15 years | ||
Equipment | Min | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 3 years | 3 years | ||
Equipment | Max | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 5 years | 5 years |
Leases - Schedule of Lease Asse
Leases - Schedule of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Jul. 30, 2023 | Jan. 29, 2023 |
Assets | ||
Operating | $ 434,805 | $ 423,423 |
Current | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Operating | $ 28,522 | $ 27,611 |
Non-current | ||
Operating | 488,767 | 471,765 |
Total operating lease liabilities | $ 517,289 | $ 499,376 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 14, 2022 | |
PRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cost not yet recognized | $ 8.8 | ||
Weighted average performance period | 2 years 3 months 18 days | ||
Vested (in shares) | 1,825,000 | ||
PRSUs | PetSmart | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested (in shares) | 93,309 | 93,309 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cost not yet recognized | $ 579.1 | ||
Weighted average performance period | 2 years 10 months 24 days | ||
Vested (in shares) | 2,553,000 | ||
Common Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for future issuance (in shares) | 28,600,000 | ||
2022 Omnibus Incentive Plan | Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares allowed for issuance (in shares) | 1,000,000 | ||
2022 Omnibus Incentive Plan | Common Class A | Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares allowed for issuance (in shares) | 40,000,000 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Service and Performance Based-Awards Activity (Details) - $ / shares shares in Thousands | 6 Months Ended | |
Jul. 30, 2023 | Jul. 31, 2022 | |
PRSUs | ||
Number of Shares | ||
Balance at beginning of period (in shares) | 2,206 | |
Granted (in shares) | 232 | |
Vested (in shares) | (1,825) | |
Forfeited (in shares) | (184) | |
Balance at end of period (in shares) | 429 | |
Weighted-Average Grant Date Fair Value | ||
Balance at beginning of period (in dollars per share) | $ 36.22 | |
Granted (in dollars per share) | 35.71 | $ 43.59 |
Vested (in dollars per share) | 36.31 | |
Forfeited (in dollars per share) | 37.19 | |
Balance at end of period (in dollars per share) | $ 35.14 | |
RSUs | ||
Number of Shares | ||
Balance at beginning of period (in shares) | 10,813 | |
Granted (in shares) | 10,068 | |
Vested (in shares) | (2,553) | |
Forfeited (in shares) | (1,041) | |
Balance at end of period (in shares) | 17,287 | |
Weighted-Average Grant Date Fair Value | ||
Balance at beginning of period (in dollars per share) | $ 45.56 | |
Granted (in dollars per share) | 35.52 | $ 42.79 |
Vested (in dollars per share) | 45.61 | |
Forfeited (in dollars per share) | 41.52 | |
Balance at end of period (in dollars per share) | $ 39.95 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Weighted Average Grant-Date Fair Value and Total Fair Value of Service and Performance Based-Awards Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jul. 30, 2023 | Jul. 31, 2022 | |
PRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant-date fair value (in dollars per share) | $ 35.71 | $ 43.59 |
Total fair value of vested | $ 72.2 | $ 58.5 |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant-date fair value (in dollars per share) | $ 35.52 | $ 42.79 |
Total fair value of vested | $ 106.1 | $ 22.3 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 65,996 | $ 38,377 | $ 114,549 | $ 64,171 |
PRSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 1,178 | 3,559 | (222) | 8,198 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 64,818 | $ 34,818 | $ 114,771 | $ 55,973 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | Jan. 29, 2023 | |
Related Party Transaction [Line Items] | |||||
Current income tax provision | $ 1,300,000 | $ 0 | $ 2,300,000 | $ 0 | |
Deferred income tax provision | $ 0 | 0 | |||
(Payments for) proceeds from tax sharing agreement with related parties | (7,606,000) | $ 533,000 | |||
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Accounts payable | 2,500,000 | 2,500,000 | $ 4,900,000 | ||
Related Party | Tax Sharing Agreement | |||||
Related Party Transaction [Line Items] | |||||
Accounts payable | $ 2,700,000 | $ 2,700,000 | $ 5,300,000 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | |
Numerator | ||||
Earnings attributable to common Class A and Class B stockholders | $ 18,946 | $ 22,345 | $ 41,127 | $ 40,817 |
Weighted-average common shares used in computing earnings per share: | ||||
Basic (in shares) | 428,618 | 421,690 | 427,735 | 421,048 |
Effect of dilutive stock-based awards (in shares) | 2,958 | 5,143 | 3,289 | 5,724 |
Diluted (in shares) | 431,576 | 426,833 | 431,024 | 426,772 |
Anti-dilutive stock-based awards excluded from diluted common shares (in shares) | 5,918 | 7,388 | 5,147 | 4,528 |
Earnings per share attributable to common Class A and Class B stockholders: | ||||
Basic (in dollars per share) | $ 0.04 | $ 0.05 | $ 0.10 | $ 0.10 |
Diluted (in dollars per share) | $ 0.04 | $ 0.05 | $ 0.10 | $ 0.10 |
Certain Relationships and Rel_2
Certain Relationships and Related Party Transactions (Details) - Related Party - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | Jan. 29, 2023 | |
Related Party Transaction [Line Items] | |||||
Revenues | $ 2.5 | $ 1.8 | $ 4.5 | $ 3.1 | |
Accounts payable | $ 2.5 | $ 2.5 | $ 4.9 |