Cover
Cover - shares | 6 Months Ended | |
Jul. 30, 2022 | Aug. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-39589 | |
Entity Registrant Name | Academy Sports and Outdoors, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-1800912 | |
Entity Address, Address Line One | 1800 North Mason Road | |
Entity Address, City or Town | Katy | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77449 | |
City Area Code | 281 | |
Local Phone Number | 646-5200 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ASO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 79,736,603 | |
Entity Central Index Key | 0001817358 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --01-28 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 30, 2022 | Jan. 29, 2022 | Jul. 31, 2021 |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 399,857 | $ 485,998 | $ 553,825 |
Accounts receivable - less allowance for doubtful accounts of $1,143, $732 and $822, respectively | 14,521 | 19,718 | 10,791 |
Merchandise inventories, net | 1,304,556 | 1,171,808 | 1,115,020 |
Prepaid expenses and other current assets | 46,448 | 36,460 | 39,050 |
Assets held for sale | 1,763 | 1,763 | 1,763 |
Total current assets | 1,767,145 | 1,715,747 | 1,720,449 |
PROPERTY AND EQUIPMENT, NET | 350,628 | 345,836 | 362,784 |
RIGHT-OF-USE ASSETS | 1,087,085 | 1,079,546 | 1,105,272 |
TRADE NAME | 577,299 | 577,215 | 577,000 |
GOODWILL | 861,920 | 861,920 | 861,920 |
OTHER NONCURRENT ASSETS | 9,892 | 4,676 | 6,602 |
Total assets | 4,653,969 | 4,584,940 | 4,634,027 |
CURRENT LIABILITIES: | |||
Accounts payable | 778,016 | 737,826 | 816,427 |
Accrued expenses and other current liabilities | 251,569 | 303,207 | 277,157 |
Current lease liabilities | 87,042 | 83,077 | 84,981 |
Current maturities of long-term debt | 3,000 | 3,000 | 3,000 |
Total current liabilities | 1,119,627 | 1,127,110 | 1,181,565 |
LONG-TERM DEBT, NET | 683,065 | 683,585 | 684,103 |
LONG-TERM LEASE LIABILITIES | 1,081,790 | 1,077,667 | 1,107,709 |
DEFERRED TAX LIABILITIES, NET | 235,187 | 217,212 | 185,765 |
OTHER LONG-TERM LIABILITIES | 13,029 | 12,420 | 27,267 |
Total liabilities | 3,132,698 | 3,117,994 | 3,186,409 |
COMMITMENTS AND CONTINGENCIES (NOTE 12) | |||
STOCKHOLDERS' EQUITY: | |||
Preferred stock, $0.01 par value, authorized 50,000,000 shares; none issued and outstanding | 0 | 0 | 0 |
Common stock, $0.01 par value, authorized 300,000,000 shares; 79,725,034; 87,079,394 and 92,883,540 issued and outstanding as of July 30, 2022, January 29, 2022 and July 31, 2021, respectively. | 797 | 870 | 929 |
Additional paid-in capital | 196,510 | 198,016 | 187,746 |
Retained earnings | 1,323,964 | 1,268,060 | 1,260,805 |
Accumulated other comprehensive loss | 0 | 0 | (1,862) |
Stockholders' equity | 1,521,271 | 1,466,946 | 1,447,618 |
Total liabilities and stockholders' equity | $ 4,653,969 | $ 4,584,940 | $ 4,634,027 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 30, 2022 | Jan. 29, 2022 | Jul. 31, 2021 |
Statement of Financial Position [Abstract] | |||
Allowance for doubtful accounts | $ 1,143 | $ 732 | $ 822 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 |
Preferred stock, issued (in shares) | 0 | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 | 300,000,000 |
Common stock, issued (in shares) | 79,725,034 | 87,079,394 | 92,883,540 |
Common stock, outstanding (in shares) | 79,725,034 | 87,079,394 | 92,883,540 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2022 | Jul. 31, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | |
Income Statement [Abstract] | ||||
NET SALES | $ 1,686,915 | $ 1,791,530 | $ 3,154,645 | $ 3,371,863 |
COST OF GOODS SOLD | 1,090,852 | 1,149,034 | 2,037,158 | 2,165,666 |
GROSS MARGIN | 596,063 | 642,496 | 1,117,487 | 1,206,197 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 339,329 | 387,938 | 655,260 | 712,565 |
OPERATING INCOME | 256,734 | 254,558 | 462,227 | 493,632 |
INTEREST EXPENSE, NET | 11,157 | 12,157 | 22,077 | 26,706 |
LOSS ON EARLY RETIREMENT OF DEBT | 0 | 2,239 | 0 | 2,239 |
OTHER (INCOME), NET | (1,441) | (735) | (2,138) | (1,132) |
INCOME BEFORE INCOME TAXES | 247,018 | 240,897 | 442,288 | 465,819 |
INCOME TAX EXPENSE | 58,217 | 50,387 | 103,681 | 97,513 |
NET INCOME | $ 188,801 | $ 190,510 | $ 338,607 | $ 368,306 |
EARNINGS PER COMMON SHARE: | ||||
BASIC (in dollars per share) | $ 2.28 | $ 2.06 | $ 3.99 | $ 3.99 |
DILUTED (in dollars per share) | $ 2.22 | $ 1.99 | $ 3.90 | $ 3.82 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||
BASIC (in shares) | 82,960 | 92,627 | 84,809 | 92,357 |
DILUTED (in shares) | 84,906 | 95,891 | 86,792 | 96,391 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2022 | Jul. 31, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 188,801 | $ 190,510 | $ 338,607 | $ 368,306 |
Recognized interest expense on interest rate swaps | 0 | 699 | 0 | 1,895 |
Tax expense | 0 | (163) | 0 | (433) |
Total comprehensive income | $ 188,801 | $ 191,046 | $ 338,607 | $ 369,768 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Stockholders' Equity, beginning balance (in shares) at Jan. 30, 2021 | 91,114,000 | ||||
Stockholders' Equity, beginning balance at Jan. 30, 2021 | $ 1,111,983 | $ 911 | $ 127,228 | $ 987,168 | $ (3,324) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 177,796 | 177,796 | |||
Equity compensation | 5,874 | 5,874 | |||
Settlement of vested Restricted Stock Units (in shares) | 87,000 | ||||
Settlement of vested Restricted Stock Units | 0 | $ 1 | (1) | ||
Share-Based Award Payments adjustment for forfeitures | 39 | 39 | |||
Stock option exercises (in shares) | 2,686,000 | ||||
Stock option exercises | 17,257 | $ 27 | 17,230 | ||
Recognized interest expense on interest rate swaps (net of tax impact) | 926 | 926 | |||
Stockholders' Equity, ending balance (in shares) at May. 01, 2021 | 93,887,000 | ||||
Stockholders' Equity, ending balance at May. 01, 2021 | 1,313,875 | $ 939 | 150,370 | 1,164,964 | (2,398) |
Stockholders' Equity, beginning balance (in shares) at Jan. 30, 2021 | 91,114,000 | ||||
Stockholders' Equity, beginning balance at Jan. 30, 2021 | 1,111,983 | $ 911 | 127,228 | 987,168 | (3,324) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 368,306 | ||||
Repurchase of common stock for retirement (in shares) | (3,229,974) | ||||
Repurchase of common stock for retirement | $ (100,000) | ||||
Stockholders' Equity, ending balance (in shares) at Jul. 31, 2021 | 92,883,540 | 92,884,000 | |||
Stockholders' Equity, ending balance at Jul. 31, 2021 | $ 1,447,618 | $ 929 | 187,746 | 1,260,805 | (1,862) |
Stockholders' Equity, beginning balance (in shares) at May. 01, 2021 | 93,887,000 | ||||
Stockholders' Equity, beginning balance at May. 01, 2021 | 1,313,875 | $ 939 | 150,370 | 1,164,964 | (2,398) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 190,510 | 190,510 | |||
Equity compensation | $ 27,331 | 27,331 | |||
Repurchase of common stock for retirement (in shares) | (3,229,974) | (3,230,000) | |||
Repurchase of common stock for retirement | $ (100,000) | $ (32) | (5,299) | (94,669) | |
Settlement of vested Restricted Stock Units (in shares) | 836,000 | ||||
Settlement of vested Restricted Stock Units | 0 | $ 8 | (8) | ||
Issuance of common stock under employee stock purchase plan (in shares) | 35,000 | ||||
Issuance of common stock under employee stock purchase plan | 945 | $ 0 | 945 | ||
Stock option exercises (in shares) | 1,356,000 | ||||
Stock option exercises | 14,421 | $ 14 | 14,407 | ||
Recognized interest expense on interest rate swaps (net of tax impact) | $ 536 | 536 | |||
Stockholders' Equity, ending balance (in shares) at Jul. 31, 2021 | 92,883,540 | 92,884,000 | |||
Stockholders' Equity, ending balance at Jul. 31, 2021 | $ 1,447,618 | $ 929 | 187,746 | 1,260,805 | (1,862) |
Stockholders' Equity, beginning balance (in shares) at Jan. 29, 2022 | 87,079,394 | 87,079,000 | |||
Stockholders' Equity, beginning balance at Jan. 29, 2022 | $ 1,466,946 | $ 870 | 198,016 | 1,268,060 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 149,806 | 149,806 | |||
Equity compensation | 3,499 | 3,499 | |||
Repurchase of common stock for retirement (in shares) | (2,272,000) | ||||
Repurchase of common stock for retirement | (88,501) | $ (23) | (5,247) | (83,231) | |
Settlement of vested Restricted Stock Units (in shares) | 63,000 | ||||
Settlement of vested Restricted Stock Units | 0 | $ 1 | (1) | ||
Stock option exercises (in shares) | 201,000 | ||||
Stock option exercises | 3,294 | $ 2 | 3,292 | ||
Cash dividends declared, $0.075 per share | (6,536) | (6,536) | |||
Stockholders' Equity, ending balance (in shares) at Apr. 30, 2022 | 85,071,000 | ||||
Stockholders' Equity, ending balance at Apr. 30, 2022 | $ 1,528,508 | $ 850 | 199,559 | 1,328,099 | 0 |
Stockholders' Equity, beginning balance (in shares) at Jan. 29, 2022 | 87,079,394 | 87,079,000 | |||
Stockholders' Equity, beginning balance at Jan. 29, 2022 | $ 1,466,946 | $ 870 | 198,016 | 1,268,060 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 338,607 | ||||
Repurchase of common stock for retirement (in shares) | (7,823,241) | ||||
Repurchase of common stock for retirement | $ (288,600) | ||||
Stockholders' Equity, ending balance (in shares) at Jul. 30, 2022 | 79,725,034 | 79,725,000 | |||
Stockholders' Equity, ending balance at Jul. 30, 2022 | $ 1,521,271 | $ 797 | 196,510 | 1,323,964 | 0 |
Stockholders' Equity, beginning balance (in shares) at Apr. 30, 2022 | 85,071,000 | ||||
Stockholders' Equity, beginning balance at Apr. 30, 2022 | 1,528,508 | $ 850 | 199,559 | 1,328,099 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 188,801 | 188,801 | |||
Equity compensation | $ 6,158 | 6,158 | |||
Repurchase of common stock for retirement (in shares) | (5,550,892) | (5,551,000) | |||
Repurchase of common stock for retirement | $ (200,111) | $ (55) | (13,391) | (186,665) | |
Settlement of vested Restricted Stock Units (in shares) | 29,000 | ||||
Settlement of vested Restricted Stock Units | 0 | $ 0 | 0 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 93,000 | ||||
Issuance of common stock under employee stock purchase plan | 2,797 | $ 1 | 2,796 | ||
Stock option exercises (in shares) | 83,000 | ||||
Stock option exercises | 1,389 | $ 1 | 1,388 | ||
Cash dividends declared, $0.075 per share | $ (6,271) | (6,271) | |||
Stockholders' Equity, ending balance (in shares) at Jul. 30, 2022 | 79,725,034 | 79,725,000 | |||
Stockholders' Equity, ending balance at Jul. 30, 2022 | $ 1,521,271 | $ 797 | $ 196,510 | $ 1,323,964 | $ 0 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 30, 2022 | Apr. 30, 2022 | Jul. 31, 2021 | May 01, 2021 | Jul. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||||
Cash dividends declared (in dollars per share) | $ 0.075 | $ 0.075 | |||
Recognized interest expense on interest rate swaps, tax | $ 163 | $ 270 | $ 433 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 30, 2022 | Jul. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 338,607 | $ 368,306 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 51,852 | 51,308 |
Non-cash lease expense | 548 | 691 |
Equity compensation | 9,657 | 33,205 |
Amortization of terminated interest rate swaps, deferred loan and other costs | 1,552 | 3,521 |
Deferred income taxes | 17,976 | 46,628 |
Non-cash loss on early retirement of debt | 0 | 2,239 |
Changes in assets and liabilities: | ||
Accounts receivable, net | 5,197 | 6,515 |
Merchandise inventories, net | (132,748) | (124,986) |
Prepaid expenses and other current assets | (9,987) | (10,737) |
Other noncurrent assets | (5,788) | 1,408 |
Accounts payable | 31,596 | 22,958 |
Accrued expenses and other current liabilities | (47,447) | 18,517 |
Income taxes payable | (3,219) | (12,996) |
Other long-term liabilities | 610 | (903) |
Net cash provided by operating activities | 258,406 | 405,674 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (48,050) | (33,767) |
Purchases of intangible assets | (84) | 0 |
Net cash used in investing activities | (48,134) | (33,767) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of Term Loan | (1,500) | (100,750) |
Debt issuance fees | 0 | (927) |
Share-Based Award Payments | 0 | (11,214) |
Proceeds from exercise of stock options | 4,683 | 31,678 |
Proceeds from issuance of common stock under employee stock purchase program | 2,797 | 945 |
Taxes paid related to net share settlement of equity awards | (974) | (15,418) |
Repurchase of common stock for retirement | (288,612) | (100,000) |
Dividends paid | (12,807) | 0 |
Net cash used in financing activities | (296,413) | (195,686) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (86,141) | 176,221 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 485,998 | 377,604 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 399,857 | 553,825 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 20,056 | 24,358 |
Cash paid for income taxes | 89,719 | 64,211 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES: | ||
Non-cash issuance of common shares | 0 | 501 |
Change in capital expenditures in accounts payable and accrued liabilities | 8,595 | 2,065 |
Right-of-use assets obtained in exchange for new operating leases | $ 56,414 | $ 5,939 |
Nature of Operations
Nature of Operations | 6 Months Ended |
Jul. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations The Company All references to "we," "us," "our" or the "Company" in the financial statements refer to Academy Sports and Outdoors, Inc., a Delaware corporation ("ASO, Inc.") and the current parent holding company of our operations, and its consolidated subsidiaries. We conduct our operations primarily through our parent holding company's indirect subsidiary, Academy, Ltd., a Texas limited partnership doing business as "Academy Sports + Outdoors", or Academy, Ltd. Our fiscal year represents the 52 or 53 weeks ending on the Saturday closest to January 31. On August 3, 2011, an investment entity owned by investment funds and other entities affiliated with Kohlberg Kravis Roberts & Co. L.P. (collectively, "KKR"), acquired a majority interest in the Company. On October 6, 2020, ASO, Inc. completed an initial public offering and as of September 17, 2021, KKR no longer held an ownership interest in the Company. The Company is one of the leading full-line sporting goods and outdoor recreational products retailers in the United States in terms of net sales. As of July 30, 2022, we operated 261 "Academy Sports + Outdoors" retail locations in 16 states and three distribution centers located in Katy, Texas, Twiggs County, Georgia and Cookeville, Tennessee. We also sell merchandise to customers across most of the United States via our academy.com website. Secondary Offering On January 27, 2021, ASO, Inc. entered into an Underwriting Agreement (the “Underwriting Agreement”), by and among ASO, Inc., Allstar LLC, Allstar Co-Invest Blocker L.P., KKR 2006 Allstar Blocker L.P., MSI 2011 LLC, MG Family Limited Partnership and the former management selling stockholder named therein (collectively, the “Selling Stockholders”), and Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC, as representatives of the several underwriters named therein (the “Underwriters”), relating to an underwritten offering of 12,000,000 shares of common stock (the “Secondary Offering”), pursuant to the Company’s Registration Statement on Form S-1 (File No. 333-252390), filed on January 25, 2021. The Selling Stockholders granted the Underwriters the option to purchase, within 30 days from the date of the Underwriting Agreement, an additional 1,800,000 shares of common stock. On January 29, 2021, the Underwriters exercised in full their option to purchase the additional shares. The Secondary Offering was completed on February 1, 2021. Pursuant to the Underwriting Agreement, the Underwriters purchased the shares from the Selling Stockholders at a price of approximately $20.69 per share. The Company did not receive any proceeds from the Secondary Offering. May 2021 Secondary Offering and Stock Repurchase On May 5, 2021, ASO, Inc. entered into an underwriting agreement (the “May 2021 Underwriting Agreement”), by and among ASO, Inc., Allstar LLC, Allstar Co-Invest Blocker L.P., KKR 2006 Allstar Blocker L.P., MSI 2011 LLC and MG Family Limited Partnership (collectively, the “May 2021 Selling Stockholders”), and Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC, as representatives of the several underwriters named therein (the “May 2021 Underwriters”), relating to an underwritten offering of 14,000,000 shares of Common Stock at $30.96 per share (the “May 2021 Secondary Offering”), pursuant to the Company’s Registration Statement on Form S-1 (File No. 333-255720), filed on May 3, 2021. The May 2021 Selling Stockholders granted the May 2021 Underwriters the option to purchase, within 30 days from the date of the May 2021 Underwriting Agreement, an additional 2,100,000 shares of Common Stock. On May 6, 2021, the May 2021 Underwriters exercised in full their option to purchase the additional shares. The May 2021 Secondary Offering also included the Company's repurchase and simultaneous retirement of 3,229,974 shares out of the 14,000,000 shares at $30.96 per share, the same price granted to the underwriters, which was at a discount to the prevailing market price at the time of repurchase (see "Share Repurchases" in Note 2). The May 2021 Secondary Offering was completed on May 10, 2021. The Company did not receive any proceeds from the May 2021 Secondary Offering. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The accompanying unaudited financial statements of the Company have been prepared as though they were required to be in accordance with Rule 10-01 of Regulation S-X for interim financial statements, however, they do not include all information and footnotes required by United States generally accepted accounting principles ("GAAP") for complete financial statements. Certain information and footnote disclosures normally included in our annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. However, we believe that the disclosures included herein are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended January 29, 2022, as filed with the Securities and Exchange Commission on March 29, 2022 (the "Annual Report"). The information furnished herein reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. The results of operations for the thirteen and twenty-six weeks ended July 30, 2022 are not necessarily indicative of the results that will be realized for the fiscal year ending January 28, 2023 or any other period. The balance sheet as of January 29, 2022 has been derived from our audited financial statements as of that date. For further information, refer to our audited financial statements and notes thereto included in the Annual Report. Basis of Presentation and Principles of Consolidation These unaudited condensed consolidated financial statements include the accounts of ASO, Inc. and its subsidiaries, New Academy Holding Company, LLC ("NAHC"), Academy Managing Co., LLC, Associated Investors, LLC, Academy, Ltd., the Company's operating company, and Academy International Limited. NAHC, Academy Managing Co., LLC, and Associated Investors, LLC are intermediate holding companies. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Our management bases its estimates on historical experience and other assumptions it believes to be reasonable under the circumstances. Actual results could differ significantly from those estimates. Our most significant estimates and assumptions that materially affect the financial statements involve difficult, subjective or complex judgments by management, including the valuation of merchandise inventories and performing goodwill, intangible and long-lived asset impairment analyses. Given the global economic climate and the possibility of additional unforeseen effects from the COVID-19 pandemic, these estimates remain challenging, and actual results could differ materially from our estimates. Reclassifications Within the merchandise division sales table presented in Note 3, certain products and categories were recategorized amongst various categories and divisions, respectively, to better align with our current merchandising strategy and view of the business. As a result, we have reclassified sales between divisions in the thirteen and twenty-six weeks ended July 31, 2021 for comparability purposes. This reclassification is in divisional presentation only and did not impact the overall net sales balances previously disclosed. Share Repurchases On September 2, 2021, the Board of Directors of the Company authorized a share repurchase program (the "2021 Share Repurchase Program") under which the Company may purchase up to $500 million of its outstanding shares during the three-year period ending September 2, 2024. On June 2, 2022, the Board of Directors of the Company authorized a new share repurchase program (the "2022 Share Repurchase Program") under which the Company may purchase up to $600 million of its outstanding shares during the three-year period ending June 2, 2025. The 2022 Share Repurchase Program and the 2021 Share Repurchase program are collectively referred to as the "Share Repurchase Programs". Under the Share Repurchase Programs, repurchases can be made using a variety of methods, which may include open market purchases, block trades, privately negotiated transactions, accelerated share repurchase programs and/or a non-discretionary trading plan, all in compliance with the rules of the SEC and other applicable legal requirements. The timing, manner, price and amount of any common share repurchases under the Share Repurchase Programs are determined by the Company in its discretion and depend on a variety of factors, including legal requirements, price and economic and market conditions. The Share Repurchase Programs do not obligate the Company to acquire any particular number of common shares, and the programs may be suspended, extended, modified or discontinued at any time. During the thirteen and twenty-six weeks ended July 30, 2022, we repurchased and concurrently retired 5,550,892 and 7,823,241 shares of ASO, Inc. common stock for an aggregate amount of $200.1 million and $288.6 million, respectively, pursuant to the Share Repurchase Programs. During the thirteen and twenty-six weeks ended July 31, 2021, we repurchased and concurrently retired 3,229,974 shares of ASO, Inc. common stock for an aggregate amount of $100.0 million pursuant to the May 2021 Secondary Offering. As of July 30, 2022, approximately $500.2 million remained available for share repurchases pursuant to the Share Repurchase Programs. Recent Accounting Pronouncements Reference Rate Reform |
Net Sales
Net Sales | 6 Months Ended |
Jul. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Net Sales | Net Sales Revenue from merchandise sales is recognized, net of sales tax, when the Company’s performance obligation to the customer is met, which is when the Company transfers control of the merchandise to the customer. Store merchandise sales are recognized at the point of sale and e-commerce sales are recognized upon delivery to the customer. The following table sets forth the approximate amount of sales by merchandise divisions for the periods presented (amounts in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Merchandise division sales (1) Outdoors $ 492,804 $ 539,497 $ 950,651 $ 1,025,155 Sports and recreation 400,244 410,491 754,291 812,905 Apparel 463,729 493,471 806,110 869,245 Footwear 322,558 337,290 625,686 647,734 Total merchandise sales (2) 1,679,335 1,780,749 3,136,738 3,355,039 Other sales (3) 7,580 10,781 17,907 16,824 Net Sales $ 1,686,915 $ 1,791,530 $ 3,154,645 $ 3,371,863 (1) Certain products and categories were recategorized amongst various categories and divisions, respectively, to better align with our current merchandising strategy and view of the business. As a result, we have reclassified sales between divisions in the thirteen and twenty-six weeks ended July 31, 2021 for comparability purposes. This reclassification is in divisional presentation only and did not impact the overall net sales balances previously disclosed (see Note 2). (2) E-commerce sales consisted of 10.0% and 9.8% of merchandise sales for the thirteen and twenty-six weeks ended July 30, 2022, respectively, and 8.4% and 7.9% for the thirteen and twenty-six weeks and July 31, 2021, respectively. (3) Other sales consisted primarily of the sales return allowance, gift card breakage income, credit card bounties and royalties, shipping income, net hunting and fishing license income and other items. We sell gift cards in stores, online and in third-party retail locations. A liability for gift cards, which is recorded in accrued expenses and other liabilities on our consolidated balance sheets is established at the time of sale and revenues are recognized as the gift cards are redeemed in stores or on our website. The following is a reconciliation of the gift card liability (amounts in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Gift card liability, beginning balance $ 73,489 $ 63,242 $ 86,568 $ 74,253 Issued 26,667 25,484 44,876 43,926 Redeemed (29,367) (27,253) (59,645) (55,743) Recognized as breakage income (830) (947) (1,840) (1,910) Gift card liability, ending balance $ 69,959 $ 60,526 $ 69,959 $ 60,526 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jul. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Our debt consisted of the following (amounts in thousands) as of: July 30, 2022 January 29, 2022 July 31, 2021 ABL Facility, due November 2025 $ — $ — $ — Term Loan, due November 2027 296,250 297,750 299,250 Notes, due November 2027 400,000 400,000 400,000 Total debt 696,250 697,750 699,250 Less current maturities (3,000) (3,000) (3,000) Less unamortized discount on Term Loan (2,244) (2,463) (2,682) Less deferred loan costs (1) (7,941) (8,702) (9,465) Long-term debt, net $ 683,065 $ 683,585 $ 684,103 (1) Deferred loan costs are related to the Term Loan and Notes. As of July 30, 2022, January 29, 2022 and July 31, 2021, the balance in deferred loan costs related to the ABL Facility (as defined below) was approximately $3.8 million, $4.3 million and $4.9 million, respectively, and was included in other noncurrent assets on our consolidated balance sheets. Total amortization of deferred loan costs was $0.6 million and $1.3 million for the thirteen and twenty-six weeks ended July 30, 2022, respectively, and $0.7 million and $1.4 million for the thirteen and twenty-six weeks ended July 31, 2021, respectively. Total expenses related to accretion of original issuance discount were $0.1 million and $0.2 million for the thirteen and twenty-six weeks ended July 30, 2022, respectively, and $0.2 million and $0.3 million for the thirteen and twenty-six weeks ended and July 31, 2021, respectively. The expenses related to amortization of deferred loan costs and accretion of original issuance discount are included in interest expense, net on the consolidated statements of income. Term Loan We refer to the 2020 Term Loan and the Amendment collectively as the "Term Loan". On November 6, 2020, Academy, Ltd. entered into a seven-year $400.0 million senior secured term loan (the "2020 Term Loan") with Credit Suisse AG, Cayman Island Branch ("Credit Suisse"), as the administrative agent and collateral agent and the several other lenders and parties. The 2020 Term Loan will mature on November 6, 2027. The 2020 Term Loan bore interest, at Academy, Ltd.’s election, at either (1) LIBOR rate with a floor of 0.75%, plus a margin of 5.00%, or (2) a base rate equal to the highest of (a) the federal funds rate plus 0.50%, (b) Credit Suisse’s "prime rate", or (c) the one-month LIBOR rate plus 1.00%, plus a margin of 4.00%. Quarterly principal payments of approximately $1.0 million were required through September 30, 2027, with the balance due in full on the maturity date of November 6, 2027. On May 25, 2021, Academy, Ltd. entered into Amendment No. 4 (the “Amendment”) to the Second Amended and Restated Credit Agreement, dated as of November 6, 2020, among Academy, Ltd., as Borrower, Credit Suisse AG, Cayman Islands Branch, as the administrative agent and collateral agent, the several lenders party thereto and the several other parties named therein (as previously amended, the “Existing Credit Agreement” and as amended by the Amendment, the “Amended Credit Agreement”). Pursuant to the terms of the Amendment, Academy, Ltd. (i) reduced the applicable margin on LIBOR borrowings under the Existing Credit Agreement from 5.00% to 3.75% and (ii) utilized cash on hand to repay $99.0 million of outstanding borrowings under the Existing Credit Agreement, leaving an outstanding principal balance of $300.0 million under the Amended Credit Agreement. Quarterly principal payments of $750.0 thousand are required through September 30, 2027 and borrowings under the Amended Credit Agreement will continue to mature on November 6, 2027. All other material terms and provisions of the 2020 Term Loan remain substantially the same as the terms and provisions in place immediately prior to the effectiveness of the Amendment. As of July 30, 2022, the weighted average interest rate was 5.46%, with interest payable monthly. The terms and conditions of the Amendment also require that the outstanding balance under the Term Loan is prepaid under certain circumstances. As of July 30, 2022, no prepayment was due under the terms and conditions of the Term Loan. In connection with the Amendment, the Company recognized a non-cash loss on early retirement of debt of $2.2 million in the thirteen and twenty-six weeks ended July 31, 2021 from the write-off of deferred loan costs and expense related to the original issuance discount associated with our 2020 Term Loan. Notes On November 6, 2020, Academy, Ltd. issued $400.0 million of 6.00% senior secured notes which are due November 15, 2027 (the "Notes"), pursuant to an indenture, dated as of November 6, 2020 (the "Indenture") with The Bank of New York Mellon Trust Company, N.A., as trustee and collateral agent. The Notes require cash interest payments semi-annually in arrears on May 15 and November 15 of each year at a rate of 6.00% per year. ABL Facility On November 6, 2020, Academy, Ltd., as borrower, and the guarantors, amended the previously existing secured asset-based revolving credit facility by entering into an amendment to the First Amended and Restated ABL Credit Agreement, dated as of July 2, 2015, with JPMorgan Chase Bank, N.A. as the administrative agent and collateral agent, letter of credit issuer and swingline lender and the several lenders party thereto, which ABL amendment, among other things, extended the maturity of Academy, Ltd.’s asset-based revolving credit facility thereunder to November 6, 2025 (the "ABL Facility"). The ABL Facility is used to provide financing for working capital and other general corporate purposes, as well as to support certain letters of credit requirements, and availability is subject to customary borrowing base and availability provisions. During the normal course of business, we periodically utilize letters of credit primarily for the purchase of import goods and in support of insurance contracts. As of July 30, 2022, we had outstanding letters of credit of approximately $19.7 million, all of which were issued under the ABL Facility, and we had no borrowings outstanding under the ABL Facility, leaving the available borrowing capacity under the ABL Facility of $980.3 million. Borrowings under the ABL Facility bear interest, at our election, at either (1) LIBOR plus a margin of 1.25% to 1.75%, or (2) a base rate equal to the highest of (a) the federal funds rate plus 0.50%, (b) JPMorgan Chase Bank, N.A.'s "prime rate", or (c) the one-month LIBOR rate plus 1.00%, plus a margin of 0.25% to 0.75%. The ABL Facility also provides a fee applicable to the unused commitments of 0.25%. The terms and conditions of the ABL Facility also require that we prepay outstanding loans under the ABL Facility under certain circumstances. As of July 30, 2022, no future prepayments of outstanding loans have been triggered under the terms and conditions of the ABL Facility. Covenants . The ABL Facility, Term Loan and Notes agreements contain covenants, including, among other things, covenants that restrict Academy, Ltd.'s ability to incur certain additional indebtedness, create or permit liens on assets, engage in mergers or consolidations, pay dividends, make other restricted payments, make loans or advances, engage in transactions with affiliates or amend material documents. Additionally, at certain times, the ABL Facility is subject to a minimum adjusted fixed charge coverage ratio. These covenants are subject to certain qualifications and limitations. We were in compliance with these covenants as of July 30, 2022. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jul. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We have historically used interest rate swap agreements to hedge market risk relating to possible adverse changes in interest rates. All interest rate swaps had been designated as cash flow hedges of variable rate interest payments on borrowings under the Term Loan. As of July 30, 2022, we do not have any derivative financial instruments outstanding. For derivatives which were designated as hedging instruments, amounts included in Accumulated Other Comprehensive Income (Loss) ("AOCI") were reclassified to interest expense in the same period during which the hedged transaction affected earnings, which was as interest expense was recorded on the underlying Term Loan. The impact of gains and losses related to interest rate swaps that were deferred into AOCI and subsequently reclassified into expense are as follows (amounts in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Accumulated Other Comprehensive Loss, beginning $ — $ (2,398) $ — $ (3,324) Increase to interest expense (net of tax impact of $163 and $433 in the thirteen and twenty-six weeks ended July 31, 2021, respectively) — 536 — 1,462 Accumulated Other Comprehensive Loss, ending $ — $ (1,862) $ — $ (1,862) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as an exit price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Authoritative guidance establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of the assets and liabilities. The fair value measurements are classified as either: • Level 1 which represents valuations based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 which represents valuations based on quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and • Level 3 which represents valuations based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy in which the fair value measurement is classified in its entirety, is based on the lowest level input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. There were no transfers made into or out of the Level 1, 2 or 3 categories during any period presented. Periodically we make cash investments in money market funds comprised of U.S. Government treasury bills and securities, which are classified as cash and redeemable on demand. As of July 30, 2022, January 29, 2022 and July 31, 2021, we held $321.4 million, $401.0 million and $383.0 million in money market funds, respectively. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jul. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consists of the following (amounts in thousands) as of: July 30, 2022 January 29, 2022 July 31, 2021 Leasehold improvements $ 464,621 $ 456,918 $ 448,275 Equipment and software 616,402 602,289 581,452 Furniture and fixtures 344,102 336,679 325,373 Construction in progress 37,922 11,147 21,846 Land 3,698 3,698 3,698 Total property and equipment 1,466,745 1,410,731 1,380,644 Accumulated depreciation and amortization (1,116,117) (1,064,895) (1,017,860) Property and equipment, net $ 350,628 $ 345,836 $ 362,784 Depreciation expense was $26.3 million and $51.9 million, respectively, in the thirteen and twenty-six weeks ended July 30, 2022, and $26.0 million and $51.3 million in the thirteen and twenty-six weeks ended July 31, 2021, respectively, and is included in selling, general and administrative expenses on the consolidated statements of income. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jul. 30, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (amounts in thousands) as of: July 30, 2022 January 29, 2022 July 31, 2021 Accrued interest $ 7,107 $ 6,583 $ 6,654 Accrued personnel costs 62,751 115,073 83,406 Accrued professional fees 1,179 4,534 2,578 Accrued sales and use tax 15,221 13,054 26,461 Accrued self-insurance 15,309 15,824 14,093 Deferred revenue - gift cards and other 73,995 88,713 64,492 Income taxes payable 6,382 9,602 10,734 Property taxes 37,413 17,747 36,451 Sales return allowance 7,100 6,200 6,700 Other 25,112 25,877 25,588 Accrued expenses and other current liabilities $ 251,569 $ 303,207 $ 277,157 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation On September 29, 2020, the ASO, Inc. Board of Directors adopted the 2020 Omnibus Incentive Plan (the "2020 Omnibus Incentive Plan"), which became effective on October 1, 2020. The 2020 Omnibus Incentive plan provides for the grant of certain equity incentive awards (each, an "Award"), such as options to purchase ASO, Inc. common stock (each, a "Stock Option") and restricted units that may settle in ASO, Inc. common stock (each, a "Restricted Stock Unit") to our directors, executives and eligible employees of the Company. Awards granted under the 2020 Omnibus Incentive Plan consist of Stock Options that vest upon the satisfaction of time-based requirements (each, a "Service Option"), Restricted Stock Units that vest upon the satisfaction of time-based requirements (each, a "Service Restricted Stock Unit") and Restricted Stock Units that vest upon the satisfaction of time and performance and/or market based requirements (each, a "Performance Restricted Stock Unit"). The plan reserved a total of 5,150,000 shares of common stock for issuance. As of July 30, 2022, there were 2,403,311 shares that were authorized and available for future issuance under the 2020 Omnibus Incentive Plan. On September 29, 2020, the ASO, Inc. Board of Directors adopted the 2020 Employee Stock Purchase Plan (the "ESPP"), which became effective on October 1, 2020. We have reserved a total of 2,000,000 shares under the ESPP and as of July 30, 2022, there were 1,792,945 shares authorized and available for future issuance under the ESPP. Equity compensation expense was $6.2 million and $9.7 million for the thirteen and twenty-six weeks ended July 30, 2022, respectively. Equity compensation expense was $27.3 million and $33.2 million for the thirteen and twenty-six weeks ended July 31, 2021, respectively, which includes approximately $24.9 million in non-cash expenses related to the 2021 Vesting Event which occurred during the 2021 second quarter. These costs are included in selling, general and administrative expenses in the consolidated statements of income. Distribution On August 28, 2020, New Academy Holding Company, LLC, the parent holding company for our operations prior to our initial public offering, paid a $257.0 million distribution to its members of record as of August 25, 2020. Cash payments ("Share-Based Award Payments") of $32.2 million for unvested Awards were paid upon vesting of such Awards, which was completed and paid in-full as of July 31, 2021. Service Option Fair Value Assumptions The fair value for Service Options granted was estimated using a Black-Scholes option-pricing model. The expected lives of the Service Options granted were based on the "SEC simplified" method. Expected price volatility was determined based on the implied volatilities of comparable companies over a historical period that matches the expected life of the Award. The risk-free interest rate was based on the expected U.S. Treasury rate over the expected life. The dividend yield was calculated based on the most recent annualized quarterly dividend and the valuation date closing stock price. The assumptions used to calculate the fair value of Awards granted are evaluated and modified, as necessary, to reflect current market conditions and experience. The following table presents the assumptions and grant date fair values for Service Options granted in the twenty-six weeks ended July 30, 2022: Expected life in years 6.2 Expected volatility 42.9% to 43.2% Weighted-average volatility 43.0 % Risk-free interest rate 2.4% to 3.0% Dividend yield 0.8 % The following table presents the Award grants during the twenty-six weeks ended July 30, 2022: Service Options Service Restricted Stock Units Performance Restricted Stock Units Number of shares 813,922 183,984 169,393 Weighted average grant date fair value per Award $ 16.33 $ 38.72 $ 39.18 Weighted average exercise price per Award $ 39.18 N/A N/A The following table presents the unrecognized compensation cost as of July 30, 2022: Service Options Service Restricted Stock Units Performance Restricted Stock Units Remaining expense $ 18,629,407 $ 14,042,372 $ 6,754,216 Weighted average life remaining in years 2.7 2.7 2.6 |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jul. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share is calculated based on net income divided by the basic weighted average common shares outstanding during the period, and diluted earnings per common share is calculated based on net income divided by the diluted weighted average common shares outstanding. Diluted weighted average common shares outstanding is based on the basic weighted average common shares outstanding plus any potential dilutive effect of stock-based awards outstanding during the period using the treasury stock method, which assumes the potential proceeds received from the dilutive stock options are used to purchase treasury stock. Anti-dilutive stock-based awards do not include awards which have a performance or liquidity event target which has yet to be achieved. Basic and diluted weighted average common shares outstanding and basic and diluted earnings per common share are calculated as follows (amounts in thousands except per share amounts): Thirteen Weeks Ended Twenty-Six Weeks Ended July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Net income $ 188,801 $ 190,510 $ 338,607 $ 368,306 Weighted average common shares outstanding - basic 82,960 92,627 84,809 92,357 Dilutive effect of Service Restricted Units and Service Restricted Stock Units 49 61 68 54 Dilutive effect of Performance Restricted Stock Units and Liquidity Event Restricted Units 90 121 94 591 Dilutive effect of Service Options 1,546 2,614 1,577 2,427 Dilutive effect of Performance Unit Options and Performance Stock Options 201 468 206 962 Dilutive effect of ESPP Shares 60 — 38 — Weighted average common shares outstanding - diluted 84,906 95,891 86,792 96,391 Earnings per common share - basic $ 2.28 $ 2.06 $ 3.99 $ 3.99 Earnings per common share - diluted $ 2.22 $ 1.99 $ 3.90 $ 3.82 Anti-dilutive stock-based awards excluded from diluted calculation 832 34 569 43 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jul. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions On January 27, 2021 and May 5, 2021, in connection with the Secondary Offering and May 2021 Secondary Offering, respectively, the Company entered into two separate underwriting agreements with affiliates of KKR (as selling stockholders), the several other selling stockholders named therein, and the several underwriters named therein, including KCM (as underwriter). The Secondary Offering and May 2021 Secondary Offering were completed on February 1, 2021 and May 10, 2021, respectively. The Company did not pay KCM any fees in connection with these secondary offerings. In connection with the May 2021 Secondary Offering, we repurchased 3,229,974 shares of ASO, Inc. common stock at $30.96 per share for approximately $100.0 million, which were immediately retired by the Company (see Note 1). |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Freight, Technology Related and Other Commitments As of July 30, 2022, we have obligations under freight, technology-related, construction and other contractual commitments in the amount of $74.8 million. Of such commitments, approximately $42.5 million is payable in the next 12 months. Financial Guarantees During the normal course of business, we enter into contracts that contain a variety of representations and warranties and provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against us that have not yet occurred. However, based on experience, we believe the risk of loss to be remote. Legal Proceedings We are a defendant or co-defendant in lawsuits, claims and demands brought by various parties relating to matters normally incident to our business. No individual case, or group of cases presenting substantially similar issues of law or fact, is expected to have a material effect on the manner in which we conduct our business or on our results of operations, financial position or liquidity. The majority of these cases are alleging product, premises, employment and/or commercial liability. Reserves have been established that we believe to be adequate based on our current evaluations and experience in these types of claim situations. However, the ultimate outcome of these cases cannot be determined at this time. We believe, taking into consideration our indemnities, insurance and reserves, the ultimate resolution of these matters will not have a material impact on our financial position, results of operations or cash flows. Sponsorship Agreement and Intellectual Property Commitments We periodically enter into sponsorship agreements generally with professional sports teams, associations, events, networks, or individual professional players and collegiate athletic programs in exchange for marketing and advertising promotions. We also enter into intellectual property agreements whereby the Company receives the right to use third-party owned trademarks typically in exchange for royalties on sales. These agreements typically contain a one |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Our management evaluated events or transactions that occurred after July 30, 2022 through September 7, 2022, the issuance date of the consolidated financial statements, and identified the following matter to report: On September 1, 2022, the Company's Board of Directors declared a quarterly cash dividend with respect to the fiscal quarter ended July 30, 2022, of $0.075 per share of the Company's common stock, payable on October 13, 2022, to stockholders of record as of the close of business on September 15, 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | These unaudited condensed consolidated financial statements include the accounts of ASO, Inc. and its subsidiaries, New Academy Holding Company, LLC ("NAHC"), Academy Managing Co., LLC, Associated Investors, LLC, Academy, Ltd., the Company's operating company, and Academy International Limited. NAHC, Academy Managing Co., LLC, and Associated Investors, LLC are intermediate holding companies. |
Principles of Consolidation | All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates in the Preparation of Financial Statements | The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Our management bases its estimates on historical experience and other assumptions it believes to be reasonable under the circumstances. Actual results could differ significantly from those estimates. Our most significant estimates and assumptions that materially affect the financial statements involve difficult, subjective or complex judgments by management, including the valuation of merchandise inventories and performing goodwill, intangible and long-lived asset impairment analyses. Given the global economic climate and the possibility of additional unforeseen effects from the COVID-19 pandemic, these estimates remain challenging, and actual results could differ materially from our estimates. |
Reclassifications | Within the merchandise division sales table presented in Note 3, certain products and categories were recategorized amongst various categories and divisions, respectively, to better align with our current merchandising strategy and view of the business. As a result, we have reclassified sales between divisions in the thirteen and twenty-six weeks ended July 31, 2021 for comparability purposes. This reclassification is in divisional presentation only and did not impact the overall net sales balances previously disclosed. |
Recent Accounting Pronouncements | Reference Rate ReformIn March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This pronouncement provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. The adoption of this guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the expedients and exceptions provided by this amendment as it relates to our transition from LIBOR to another reference rate to determine the impact. |
Net Sales (Tables)
Net Sales (Tables) | 6 Months Ended |
Jul. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table sets forth the approximate amount of sales by merchandise divisions for the periods presented (amounts in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Merchandise division sales (1) Outdoors $ 492,804 $ 539,497 $ 950,651 $ 1,025,155 Sports and recreation 400,244 410,491 754,291 812,905 Apparel 463,729 493,471 806,110 869,245 Footwear 322,558 337,290 625,686 647,734 Total merchandise sales (2) 1,679,335 1,780,749 3,136,738 3,355,039 Other sales (3) 7,580 10,781 17,907 16,824 Net Sales $ 1,686,915 $ 1,791,530 $ 3,154,645 $ 3,371,863 (1) Certain products and categories were recategorized amongst various categories and divisions, respectively, to better align with our current merchandising strategy and view of the business. As a result, we have reclassified sales between divisions in the thirteen and twenty-six weeks ended July 31, 2021 for comparability purposes. This reclassification is in divisional presentation only and did not impact the overall net sales balances previously disclosed (see Note 2). (2) E-commerce sales consisted of 10.0% and 9.8% of merchandise sales for the thirteen and twenty-six weeks ended July 30, 2022, respectively, and 8.4% and 7.9% for the thirteen and twenty-six weeks and July 31, 2021, respectively. (3) Other sales consisted primarily of the sales return allowance, gift card breakage income, credit card bounties and royalties, shipping income, net hunting and fishing license income and other items. |
Reconciliation of Gift Card Liability | The following is a reconciliation of the gift card liability (amounts in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Gift card liability, beginning balance $ 73,489 $ 63,242 $ 86,568 $ 74,253 Issued 26,667 25,484 44,876 43,926 Redeemed (29,367) (27,253) (59,645) (55,743) Recognized as breakage income (830) (947) (1,840) (1,910) Gift card liability, ending balance $ 69,959 $ 60,526 $ 69,959 $ 60,526 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jul. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Our debt consisted of the following (amounts in thousands) as of: July 30, 2022 January 29, 2022 July 31, 2021 ABL Facility, due November 2025 $ — $ — $ — Term Loan, due November 2027 296,250 297,750 299,250 Notes, due November 2027 400,000 400,000 400,000 Total debt 696,250 697,750 699,250 Less current maturities (3,000) (3,000) (3,000) Less unamortized discount on Term Loan (2,244) (2,463) (2,682) Less deferred loan costs (1) (7,941) (8,702) (9,465) Long-term debt, net $ 683,065 $ 683,585 $ 684,103 (1) Deferred loan costs are related to the Term Loan and Notes. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jul. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Impact of Gains and Losses Related to Interest Rate Swaps | The impact of gains and losses related to interest rate swaps that were deferred into AOCI and subsequently reclassified into expense are as follows (amounts in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Accumulated Other Comprehensive Loss, beginning $ — $ (2,398) $ — $ (3,324) Increase to interest expense (net of tax impact of $163 and $433 in the thirteen and twenty-six weeks ended July 31, 2021, respectively) — 536 — 1,462 Accumulated Other Comprehensive Loss, ending $ — $ (1,862) $ — $ (1,862) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jul. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consists of the following (amounts in thousands) as of: July 30, 2022 January 29, 2022 July 31, 2021 Leasehold improvements $ 464,621 $ 456,918 $ 448,275 Equipment and software 616,402 602,289 581,452 Furniture and fixtures 344,102 336,679 325,373 Construction in progress 37,922 11,147 21,846 Land 3,698 3,698 3,698 Total property and equipment 1,466,745 1,410,731 1,380,644 Accumulated depreciation and amortization (1,116,117) (1,064,895) (1,017,860) Property and equipment, net $ 350,628 $ 345,836 $ 362,784 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jul. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses and other current liabilities consist of the following (amounts in thousands) as of: July 30, 2022 January 29, 2022 July 31, 2021 Accrued interest $ 7,107 $ 6,583 $ 6,654 Accrued personnel costs 62,751 115,073 83,406 Accrued professional fees 1,179 4,534 2,578 Accrued sales and use tax 15,221 13,054 26,461 Accrued self-insurance 15,309 15,824 14,093 Deferred revenue - gift cards and other 73,995 88,713 64,492 Income taxes payable 6,382 9,602 10,734 Property taxes 37,413 17,747 36,451 Sales return allowance 7,100 6,200 6,700 Other 25,112 25,877 25,588 Accrued expenses and other current liabilities $ 251,569 $ 303,207 $ 277,157 |
Schedule of Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (amounts in thousands) as of: July 30, 2022 January 29, 2022 July 31, 2021 Accrued interest $ 7,107 $ 6,583 $ 6,654 Accrued personnel costs 62,751 115,073 83,406 Accrued professional fees 1,179 4,534 2,578 Accrued sales and use tax 15,221 13,054 26,461 Accrued self-insurance 15,309 15,824 14,093 Deferred revenue - gift cards and other 73,995 88,713 64,492 Income taxes payable 6,382 9,602 10,734 Property taxes 37,413 17,747 36,451 Sales return allowance 7,100 6,200 6,700 Other 25,112 25,877 25,588 Accrued expenses and other current liabilities $ 251,569 $ 303,207 $ 277,157 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jul. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Assumptions and Grant Date Fair Values for Options Granted | The following table presents the assumptions and grant date fair values for Service Options granted in the twenty-six weeks ended July 30, 2022: Expected life in years 6.2 Expected volatility 42.9% to 43.2% Weighted-average volatility 43.0 % Risk-free interest rate 2.4% to 3.0% Dividend yield 0.8 % |
Units Granted | The following table presents the Award grants during the twenty-six weeks ended July 30, 2022: Service Options Service Restricted Stock Units Performance Restricted Stock Units Number of shares 813,922 183,984 169,393 Weighted average grant date fair value per Award $ 16.33 $ 38.72 $ 39.18 Weighted average exercise price per Award $ 39.18 N/A N/A |
Unrecognized Compensation Cost | The following table presents the unrecognized compensation cost as of July 30, 2022: Service Options Service Restricted Stock Units Performance Restricted Stock Units Remaining expense $ 18,629,407 $ 14,042,372 $ 6,754,216 Weighted average life remaining in years 2.7 2.7 2.6 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Jul. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Basic and diluted weighted average common shares outstanding and basic and diluted earnings per common share are calculated as follows (amounts in thousands except per share amounts): Thirteen Weeks Ended Twenty-Six Weeks Ended July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Net income $ 188,801 $ 190,510 $ 338,607 $ 368,306 Weighted average common shares outstanding - basic 82,960 92,627 84,809 92,357 Dilutive effect of Service Restricted Units and Service Restricted Stock Units 49 61 68 54 Dilutive effect of Performance Restricted Stock Units and Liquidity Event Restricted Units 90 121 94 591 Dilutive effect of Service Options 1,546 2,614 1,577 2,427 Dilutive effect of Performance Unit Options and Performance Stock Options 201 468 206 962 Dilutive effect of ESPP Shares 60 — 38 — Weighted average common shares outstanding - diluted 84,906 95,891 86,792 96,391 Earnings per common share - basic $ 2.28 $ 2.06 $ 3.99 $ 3.99 Earnings per common share - diluted $ 2.22 $ 1.99 $ 3.90 $ 3.82 Anti-dilutive stock-based awards excluded from diluted calculation 832 34 569 43 |
Nature of Operations (Details)
Nature of Operations (Details) | 3 Months Ended | 6 Months Ended | ||||
May 10, 2021 USD ($) $ / shares shares | Feb. 01, 2021 USD ($) $ / shares shares | Jul. 30, 2022 location distributionCenter state shares | Jul. 31, 2021 USD ($) shares | Jul. 30, 2022 USD ($) location distributionCenter state shares | Jul. 31, 2021 USD ($) shares | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Number of retail locations | location | 261 | 261 | ||||
Number of states | state | 16 | 16 | ||||
Number of distribution centers | distributionCenter | 3 | 3 | ||||
Repurchase of common stock for retirement (in shares) | shares | 3,229,974 | 5,550,892 | 3,229,974 | 7,823,241 | 3,229,974 | |
Stock repurchased and retired during period, price per share (in dollars per share) | $ / shares | $ 30.96 | |||||
Equity compensation | $ 24,900,000 | $ 9,657,000 | $ 33,205,000 | |||
Taxes paid related to net share settlement of equity awards | $ 15,400,000 | $ 974,000 | $ 15,418,000 | |||
Accelerated equity compensation cost | $ 8,200,000 | |||||
Secondary Offering | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Number of shares issued in transaction (in shares) | shares | 12,000,000 | |||||
Price per share (in dollars per share) | $ / shares | $ 20.69 | |||||
Net proceeds from sale of stock | $ 0 | |||||
Over-Allotment Option | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Number of shares issued in transaction (in shares) | shares | 2,100,000 | 1,800,000 | ||||
Period to purchase additional shares | 30 days | 30 days | ||||
May Secondary Offering | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Number of shares issued in transaction (in shares) | shares | 14,000,000 | |||||
Price per share (in dollars per share) | $ / shares | $ 30.96 | |||||
Net proceeds from sale of stock | $ 0 | |||||
Stock repurchased and retired during period, price per share (in dollars per share) | $ / shares | $ 30.96 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 02, 2022 | Sep. 02, 2021 | May 10, 2021 | Jul. 30, 2022 | Apr. 30, 2022 | Jul. 31, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | |
Accounting Policies [Abstract] | ||||||||
Share repurchase program, authorized amount | $ 600,000 | $ 500,000 | ||||||
Share repurchase program, period in force | 3 years | 3 years | ||||||
Repurchase of common stock for retirement (in shares) | 3,229,974 | 5,550,892 | 3,229,974 | 7,823,241 | 3,229,974 | |||
Repurchase of common stock for retirement | $ 100,000 | $ 200,111 | $ 88,501 | $ 100,000 | $ 288,600 | $ 100,000 | ||
Share repurchase program, remaining authorized amount | $ 500,200 | $ 500,200 |
Net Sales - Disaggregation of R
Net Sales - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2022 | Jul. 31, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 1,686,915 | $ 1,791,530 | $ 3,154,645 | $ 3,371,863 |
Customer Concentration Risk | Revenue from Contract with Customer Benchmark | E-Commerce | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of sales | 10% | 8.40% | 9.80% | 7.90% |
Outdoors | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 492,804 | $ 539,497 | $ 950,651 | $ 1,025,155 |
Sports and recreation | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 400,244 | 410,491 | 754,291 | 812,905 |
Apparel | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 463,729 | 493,471 | 806,110 | 869,245 |
Footwear | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 322,558 | 337,290 | 625,686 | 647,734 |
Total merchandise | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 1,679,335 | 1,780,749 | 3,136,738 | 3,355,039 |
Other sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 7,580 | $ 10,781 | $ 17,907 | $ 16,824 |
Net Sales - Gift Card Liability
Net Sales - Gift Card Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2022 | Jul. 31, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | |
Change in Contract with Customer, Liability [Roll Forward] | ||||
Gift card liability, beginning balance | $ 73,489 | $ 63,242 | $ 86,568 | $ 74,253 |
Issued | 26,667 | 25,484 | 44,876 | 43,926 |
Gift card liability, ending balance | 69,959 | 60,526 | 69,959 | 60,526 |
Redeemed | ||||
Change in Contract with Customer, Liability [Roll Forward] | ||||
Redeemed and recognized as breakage income | (29,367) | (27,253) | (59,645) | (55,743) |
Recognized as breakage income | ||||
Change in Contract with Customer, Liability [Roll Forward] | ||||
Redeemed and recognized as breakage income | $ (830) | $ (947) | $ (1,840) | $ (1,910) |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Jul. 30, 2022 | Jan. 29, 2022 | Jul. 31, 2021 |
Debt Instrument [Line Items] | |||
Total debt | $ 696,250 | $ 697,750 | $ 699,250 |
Less current maturities | (3,000) | (3,000) | (3,000) |
Less unamortized discount on Term Loan | (2,244) | (2,463) | (2,682) |
Less deferred loan costs | (7,941) | (8,702) | (9,465) |
Long-term debt, net | 683,065 | 683,585 | 684,103 |
Secured Debt | Term Loan, due November 2027 | |||
Debt Instrument [Line Items] | |||
Total debt | 296,250 | 297,750 | 299,250 |
Senior Notes | Notes, due November 2027 | |||
Debt Instrument [Line Items] | |||
Total debt | 400,000 | 400,000 | 400,000 |
Revolving Credit Facility | ABL Facility, due November 2025 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 0 | $ 0 | $ 0 |
Long-Term Debt - Additional Det
Long-Term Debt - Additional Detail (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
May 25, 2021 | May 24, 2021 | Nov. 06, 2020 | Jul. 30, 2022 | Jul. 31, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | Jan. 29, 2022 | |
Debt Instrument [Line Items] | ||||||||
Deferred loan costs | $ 7,941,000 | $ 9,465,000 | $ 7,941,000 | $ 9,465,000 | $ 8,702,000 | |||
Amortization of debt issuance costs | 1,552,000 | 3,521,000 | ||||||
Non-cash loss on early retirement of debt | 0 | 2,239,000 | 0 | 2,239,000 | ||||
Outstanding letters of credit | 19,700,000 | 19,700,000 | ||||||
Line of Credit | ABL Facility, due November 2025 | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Amortization of debt issuance costs | 600,000 | 700,000 | 1,300,000 | 1,400,000 | ||||
Accretion of original discount | 100,000 | 200,000 | 200,000 | 300,000 | ||||
Borrowings outstanding | 0 | 0 | ||||||
Remaining borrowing capacity | 980,300,000 | $ 980,300,000 | ||||||
Unused commitment fee, percentage | 0.25% | |||||||
Line of Credit | ABL Facility, due November 2025 | Revolving Credit Facility | Other noncurrent assets | ||||||||
Debt Instrument [Line Items] | ||||||||
Deferred loan costs | $ 3,800,000 | $ 4,900,000 | $ 3,800,000 | $ 4,900,000 | $ 4,300,000 | |||
Line of Credit | ABL Facility, due November 2025 | Revolving Credit Facility | LIBOR Rate | Variable Rate Component, One | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.25% | |||||||
Line of Credit | ABL Facility, due November 2025 | Revolving Credit Facility | LIBOR Rate | Variable Rate Component, One | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.75% | |||||||
Line of Credit | ABL Facility, due November 2025 | Revolving Credit Facility | LIBOR Rate | Variable Rate Component, Three | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1% | |||||||
Line of Credit | ABL Facility, due November 2025 | Revolving Credit Facility | Federal funds rate | Variable Rate Component, Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
Line of Credit | ABL Facility, due November 2025 | Revolving Credit Facility | Base Rate | Variable Rate Component, Three | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.25% | |||||||
Line of Credit | ABL Facility, due November 2025 | Revolving Credit Facility | Base Rate | Variable Rate Component, Three | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.75% | |||||||
Secured Debt | 2020 Term Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt term | 7 years | |||||||
Debt face amount | $ 400,000,000 | |||||||
Quarterly principal payments | $ 750,000 | $ 1,000,000 | ||||||
Repayment of debt | 99,000,000 | |||||||
Borrowings outstanding | $ 300,000,000 | |||||||
Weighted average interest rate | 5.46% | 5.46% | ||||||
Secured Debt | 2020 Term Loan Facility | LIBOR Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 3.75% | 5% | ||||||
Secured Debt | 2020 Term Loan Facility | LIBOR Rate | Variable Rate Component, One | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate floor | 0.75% | |||||||
Basis spread on variable rate | 5% | |||||||
Secured Debt | 2020 Term Loan Facility | LIBOR Rate | Variable Rate Component, Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1% | |||||||
Secured Debt | 2020 Term Loan Facility | Federal funds rate | Variable Rate Component, Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
Secured Debt | 2020 Term Loan Facility | Base Rate | Variable Rate Component, Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 4% | |||||||
Senior Notes | Notes, due November 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt face amount | $ 400,000,000 | |||||||
Interest rate, stated percentage | 6% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Impact of Gains and Losses Related to Interest Rate Swaps (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 30, 2022 | Jul. 31, 2021 | May 01, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Stockholders' Equity, beginning balance | $ 1,528,508 | $ 1,313,875 | $ 1,111,983 | $ 1,466,946 | $ 1,111,983 |
Increase to interest expense | 536 | 926 | |||
Stockholders' Equity, ending balance | 1,521,271 | 1,447,618 | 1,313,875 | 1,521,271 | 1,447,618 |
Increase (decrease) to interest expense, tax | 163 | 270 | 433 | ||
Accumulated Other Comprehensive Income (Loss) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Stockholders' Equity, beginning balance | 0 | (2,398) | (3,324) | 0 | (3,324) |
Increase to interest expense | 536 | 926 | |||
Stockholders' Equity, ending balance | 0 | (1,862) | $ (2,398) | 0 | (1,862) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Increase to interest expense | $ 0 | $ 536 | $ 0 | $ 1,462 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Jul. 30, 2022 | Jan. 29, 2022 | Jul. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Borrowings, fair value | $ 700 | $ 700 | $ 700 |
Money Market Funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market funds | $ 321.4 | $ 401 | $ 383 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 30, 2022 | Jul. 31, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | Jan. 29, 2022 | |
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | $ 1,466,745 | $ 1,380,644 | $ 1,466,745 | $ 1,380,644 | $ 1,410,731 |
Accumulated depreciation and amortization | (1,116,117) | (1,017,860) | (1,116,117) | (1,017,860) | (1,064,895) |
Property and equipment, net | 350,628 | 362,784 | 350,628 | 362,784 | 345,836 |
Depreciation expense | 26,300 | 26,000 | 51,900 | 51,300 | |
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | 464,621 | 448,275 | 464,621 | 448,275 | 456,918 |
Equipment and software | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | 616,402 | 581,452 | 616,402 | 581,452 | 602,289 |
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | 344,102 | 325,373 | 344,102 | 325,373 | 336,679 |
Construction in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | 37,922 | 21,846 | 37,922 | 21,846 | 11,147 |
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | $ 3,698 | $ 3,698 | $ 3,698 | $ 3,698 | $ 3,698 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jul. 30, 2022 | Jan. 29, 2022 | Jul. 31, 2021 |
Payables and Accruals [Abstract] | |||
Accrued interest | $ 7,107 | $ 6,583 | $ 6,654 |
Accrued personnel costs | 62,751 | 115,073 | 83,406 |
Accrued professional fees | 1,179 | 4,534 | 2,578 |
Accrued sales and use tax | 15,221 | 13,054 | 26,461 |
Accrued self-insurance | 15,309 | 15,824 | 14,093 |
Deferred revenue - gift cards and other | 73,995 | 88,713 | 64,492 |
Income taxes payable | 6,382 | 9,602 | 10,734 |
Property taxes | 37,413 | 17,747 | 36,451 |
Sales return allowance | 7,100 | 6,200 | 6,700 |
Other | 25,112 | 25,877 | 25,588 |
Accrued expenses and other current liabilities | $ 251,569 | $ 303,207 | $ 277,157 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Aug. 28, 2020 | Jul. 30, 2022 | Jul. 31, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | Oct. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity compensation expense | $ 6.2 | $ 27.3 | $ 9.7 | $ 33.2 | ||
Distribution | $ 257 | |||||
ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock reserved for future issuance (in shares) | 2,000,000 | 2,000,000 | ||||
Common stock authorized for grant (in shares) | 1,792,945 | 1,792,945 | ||||
Common stock available for grant (in shares) | 1,792,945 | 1,792,945 | ||||
Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity compensation expense | $ 24.9 | |||||
Unit Options and Restricted Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity compensation expense | $ 32.2 | |||||
2020 Share Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock reserved for future issuance (in shares) | 5,150,000 | |||||
Common stock authorized for grant (in shares) | 2,403,311 | 2,403,311 | ||||
Common stock available for grant (in shares) | 2,403,311 | 2,403,311 |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions and Grant Date Fair Values for Options Granted (Details) - Service Options | 6 Months Ended |
Jul. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life in years | 6 years 2 months 12 days |
Expected volatility, minimum | 42.90% |
Expected volatility, maximum | 43.20% |
Weighted-average volatility | 43% |
Risk-free interest rate, minimum | 2.40% |
Risk-free interest rate, maximum | 3% |
Dividend yield | 0.80% |
Share-Based Compensation - Unit
Share-Based Compensation - Units Granted (Details) | 6 Months Ended |
Jul. 30, 2022 $ / shares shares | |
Service Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, Number of shares (in shares) | shares | 813,922 |
Options, Weighted average grant date fair value per Award (in usd per share) | $ 16.33 |
Options, Weighted average exercise price per Award (in usd per share) | $ 39.18 |
Service Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted units, Number of shares (in shares) | shares | 183,984 |
Restricted units, Weighted average grant date fair value per Award (in usd per share) | $ 38.72 |
Performance Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted units, Number of shares (in shares) | shares | 169,393 |
Restricted units, Weighted average grant date fair value per Award (in usd per share) | $ 39.18 |
Share-Based Compensation - Unre
Share-Based Compensation - Unrecognized Compensation Cost (Details) | Jul. 30, 2022 USD ($) |
Service Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, Remaining expense | $ 18,629,407 |
Weighted average life remaining in years | 2 years 8 months 12 days |
Service Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted units, Remaining expense | $ 14,042,372 |
Weighted average life remaining in years | 2 years 8 months 12 days |
Performance Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted units, Remaining expense | $ 6,754,216 |
Weighted average life remaining in years | 2 years 7 months 6 days |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 30, 2022 | Apr. 30, 2022 | Jul. 31, 2021 | May 01, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||
Net income | $ 188,801 | $ 149,806 | $ 190,510 | $ 177,796 | $ 338,607 | $ 368,306 |
Weighted average common shares outstanding - basic (in shares) | 82,960 | 92,627 | 84,809 | 92,357 | ||
Weighted average common shares outstanding - diluted (in shares) | 84,906 | 95,891 | 86,792 | 96,391 | ||
Earnings per common share - basic (in usd per share) | $ 2.28 | $ 2.06 | $ 3.99 | $ 3.99 | ||
Earnings per common share - diluted (in usd per share) | $ 2.22 | $ 1.99 | $ 3.90 | $ 3.82 | ||
Anti-dilutive stock-based awards excluded from diluted calculation (in shares) | 832 | 34 | 569 | 43 | ||
Service Restricted Units and Service Restricted Stock Units | ||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||
Dilutive effect of stock-based awards (in shares) | 49 | 61 | 68 | 54 | ||
Performance Restricted Stock Units and Liquidity Event Restricted Units | ||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||
Dilutive effect of stock-based awards (in shares) | 90 | 121 | 94 | 591 | ||
Service Options | ||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||
Dilutive effect of stock-based awards (in shares) | 1,546 | 2,614 | 1,577 | 2,427 | ||
Performance Unit Options and Performance Stock Options | ||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||
Dilutive effect of stock-based awards (in shares) | 201 | 468 | 206 | 962 | ||
ESPP | ||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||
Dilutive effect of stock-based awards (in shares) | 60 | 0 | 38 | 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
May 10, 2021 | Jul. 30, 2022 | Apr. 30, 2022 | Jul. 31, 2021 | Jul. 30, 2022 | Jul. 31, 2021 | |
Related Party Transactions [Abstract] | ||||||
Repurchase of common stock for retirement (in shares) | 3,229,974 | 5,550,892 | 3,229,974 | 7,823,241 | 3,229,974 | |
Stock repurchased and retired during period, price per share (in dollars per share) | $ 30.96 | |||||
Repurchase of common stock for retirement | $ 100,000 | $ 200,111 | $ 88,501 | $ 100,000 | $ 288,600 | $ 100,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 6 Months Ended |
Jul. 30, 2022 USD ($) | |
Freight, Technology Related Commitments and Other | |
Long-term Purchase Commitment [Line Items] | |
Contractual commitment obligations | $ 74.8 |
Contractual commitment obligations, payable in next 12 months | 42.5 |
Sponsorship Agreement and Intellectual Property Commitments | |
Long-term Purchase Commitment [Line Items] | |
Contractual commitment obligations | 17.9 |
Contractual commitment obligations, payable in next 12 months | $ 5.8 |
Minimum | Sponsorship Agreement and Intellectual Property Commitments | |
Long-term Purchase Commitment [Line Items] | |
Agreement term | 1 year |
Maximum | Sponsorship Agreement and Intellectual Property Commitments | |
Long-term Purchase Commitment [Line Items] | |
Agreement term | 3 years |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 3 Months Ended | ||
Sep. 01, 2022 | Jul. 30, 2022 | Apr. 30, 2022 | |
Subsequent Event [Line Items] | |||
Cash dividends declared (in dollars per share) | $ 0.075 | $ 0.075 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Cash dividends declared (in dollars per share) | $ 0.075 |