Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 29, 2017 | Nov. 26, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 29, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | WSM | |
Entity Registrant Name | WILLIAMS SONOMA INC | |
Entity Central Index Key | 719,955 | |
Current Fiscal Year End Date | --01-29 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 84,175,180 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Oct. 29, 2017 | Oct. 30, 2016 | Oct. 29, 2017 | Oct. 30, 2016 | |||||
Net revenues | [1] | $ 1,299,336 | $ 1,245,385 | $ 3,612,449 | $ 3,502,231 | |||
Cost of goods sold | 832,269 | 787,162 | 2,326,911 | 2,240,952 | ||||
Gross profit | 467,067 | 458,223 | 1,285,538 | 1,261,279 | ||||
Selling, general and administrative expenses | 356,254 | 348,244 | 1,030,667 | 1,004,499 | ||||
Operating income | 110,813 | 109,979 | [2] | 254,871 | [2] | 256,780 | [2] | |
Interest (income) expense, net | 594 | 488 | 974 | 587 | ||||
Earnings before income taxes | 110,219 | 109,491 | 253,897 | 256,193 | ||||
Income taxes | 38,906 | 40,113 | 90,112 | 95,433 | ||||
Net earnings | $ 71,313 | $ 69,378 | $ 163,785 | $ 160,760 | ||||
Basic earnings per share | $ 0.84 | $ 0.78 | $ 1.90 | $ 1.81 | ||||
Diluted earnings per share | $ 0.84 | $ 0.78 | $ 1.89 | $ 1.79 | ||||
Shares used in calculation of earnings per share: | ||||||||
Basic | 84,940 | 88,382 | 86,111 | 88,906 | ||||
Diluted | 85,384 | 89,144 | 86,582 | 89,764 | ||||
E-commerce | ||||||||
Net revenues | $ 690,045 | $ 648,743 | $ 1,901,348 | $ 1,824,660 | ||||
Retail | ||||||||
Net revenues | $ 609,291 | $ 596,642 | $ 1,711,101 | $ 1,677,571 | ||||
[1] | Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom and our franchise businesses) of approximately $84.1 million and $82.8 million for the thirteen weeks ended October 29, 2017 and October 30, 2016, respectively, and $234.1 million and $232.5 million for the thirty-nine weeks ended October 29, 2017 and October 30, 2016, respectively. | |||||||
[2] | Includes $5.7 million of severance-related charges for the thirty-nine weeks ended October 29, 2017 and $1.2 million and $14.4 million of severance-related charges for the thirteen and thirty-nine weeks ended October 30, 2016, respectively, primarily in our corporate functions, which is recorded in selling, general and administrative expenses within the unallocated segment. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2017 | Oct. 30, 2016 | Oct. 29, 2017 | Oct. 30, 2016 | |
Net earnings | $ 71,313 | $ 69,378 | $ 163,785 | $ 160,760 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 40 | (1,731) | 1,864 | 472 |
Change in fair value of derivative financial instruments, net of tax (tax benefit) of $133, $184, $(52) and $(208) | 373 | 520 | (138) | (587) |
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax (tax benefit) of $45, $(107), $48 and $12 | (128) | 299 | (137) | (41) |
Comprehensive income | $ 71,598 | $ 68,466 | $ 165,374 | $ 160,604 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2017 | Oct. 30, 2016 | Oct. 29, 2017 | Oct. 30, 2016 | |
Change in fair value of derivative financial instruments, tax | $ 133 | $ 184 | $ (52) | $ (208) |
Reclassification adjustment for realized losses on derivative financial instruments, tax | $ 45 | $ (107) | $ 48 | $ 12 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 29, 2017 | Jan. 29, 2017 | Oct. 30, 2016 | ||
Current assets | |||||
Cash and cash equivalents | $ 90,779 | $ 213,713 | $ 75,381 | ||
Accounts receivable, net | 92,282 | 88,803 | 96,386 | ||
Merchandise inventories, net | 1,176,941 | 977,505 | 1,063,747 | ||
Prepaid catalog expenses | 22,992 | 23,625 | 25,329 | ||
Prepaid expenses | 65,326 | 52,882 | 74,195 | ||
Other assets | 12,141 | 10,652 | 12,176 | ||
Total current assets | 1,460,461 | 1,367,180 | 1,347,214 | ||
Property and equipment, net | 931,131 | 923,283 | 918,020 | ||
Deferred income taxes, net | 131,793 | 135,238 | 136,558 | ||
Other assets, net | 56,999 | 51,178 | 51,540 | ||
Total assets | 2,580,384 | [1] | 2,476,879 | 2,453,332 | [1] |
Current liabilities | |||||
Accounts payable | 470,783 | 453,710 | 450,144 | ||
Accrued salaries, benefits and other liabilities | 103,349 | 130,187 | 111,445 | ||
Customer deposits | 288,569 | 294,276 | 289,737 | ||
Borrowings under revolving line of credit | 170,000 | 125,000 | |||
Income taxes payable | 48,865 | 23,245 | 1,122 | ||
Other liabilities | 55,985 | 59,838 | 53,423 | ||
Total current liabilities | 1,137,551 | 961,256 | 1,030,871 | ||
Deferred rent and lease incentives | 195,220 | 196,188 | 192,948 | ||
Other long-term obligations | 75,439 | 71,215 | 70,031 | ||
Total liabilities | 1,408,210 | 1,228,659 | 1,293,850 | ||
Commitments and contingencies - See Note F | |||||
Stockholders' equity | |||||
Preferred stock: $.01 par value; 7,500 shares authorized; none issued | |||||
Common stock: $.01 par value; 253,125 shares authorized; 84,478, 87,325 and 88,014 shares issued and outstanding at October 29, 2017, January 29, 2017 and October 30, 2016, respectively | 845 | 873 | 881 | ||
Additional paid-in capital | 557,198 | 556,928 | 547,513 | ||
Retained earnings | 623,170 | 701,702 | 623,243 | ||
Accumulated other comprehensive loss | (8,314) | (9,903) | (10,772) | ||
Treasury stock, at cost: 11, 20 and 20 shares as of October 29, 2017, January 29, 2017 and October 30, 2016, respectively | (725) | (1,380) | (1,383) | ||
Total stockholders' equity | 1,172,174 | 1,248,220 | 1,159,482 | ||
Total liabilities and stockholders' equity | $ 2,580,384 | $ 2,476,879 | $ 2,453,332 | ||
[1] | Includes long-term assets related to our international operations of approximately $58.5 million and $59.2 million as of October 29, 2017 and October 30, 2016, respectively. |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 29, 2017 | Jan. 29, 2017 | Oct. 30, 2016 |
Preferred stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 7,500,000 | 7,500,000 | 7,500,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 253,125,000 | 253,125,000 | 253,125,000 |
Common stock, shares issued | 84,478,000 | 87,325,000 | 88,014,000 |
Common stock, shares outstanding | 84,478,000 | 87,325,000 | 88,014,000 |
Treasury stock, shares | 11,000 | 20,000 | 20,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 29, 2017 | Oct. 30, 2016 | |
Cash flows from operating activities: | ||
Net earnings | $ 163,785 | $ 160,760 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 135,473 | 127,745 |
Loss on disposal/impairment of assets | 1,299 | 1,852 |
Amortization of deferred lease incentives | (18,987) | (18,789) |
Deferred income taxes | (11,884) | (14,461) |
Tax benefit related to stock-based awards | 15,439 | 23,571 |
Excess tax benefit related to stock-based awards | (4,817) | |
Stock-based compensation expense | 30,164 | 37,975 |
Other | (416) | (647) |
Changes in: | ||
Accounts receivable | (2,341) | (17,400) |
Merchandise inventories | (197,757) | (82,410) |
Prepaid catalog expenses | 633 | 3,591 |
Prepaid expenses and other assets | (20,001) | (29,205) |
Accounts payable | 7,544 | (17,403) |
Accrued salaries, benefits and other liabilities | (26,883) | (507) |
Customer deposits | (5,815) | (7,445) |
Deferred rent and lease incentives | 17,000 | 25,969 |
Income taxes payable | 25,677 | (65,915) |
Net cash provided by operating activities | 112,930 | 122,464 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (135,821) | (127,169) |
Other | 458 | 370 |
Net cash used in investing activities | (135,363) | (126,799) |
Cash flows from financing activities: | ||
Borrowings under revolving line of credit | 170,000 | 125,000 |
Repurchases of common stock | (154,321) | (115,167) |
Payment of dividends | (101,928) | (100,854) |
Tax withholdings related to stock-based awards | (14,836) | (26,518) |
Excess tax benefit related to stock-based awards | 4,817 | |
Proceeds related to stock-based awards | 1,532 | |
Other | (20) | (48) |
Net cash used in financing activities | (101,105) | (111,238) |
Effect of exchange rates on cash and cash equivalents | 604 | (2,693) |
Net decrease in cash and cash equivalents | (122,934) | (118,266) |
Cash and cash equivalents at beginning of period | 213,713 | 193,647 |
Cash and cash equivalents at end of period | $ 90,779 | $ 75,381 |
FINANCIAL STATEMENTS - BASIS OF
FINANCIAL STATEMENTS - BASIS OF PRESENTATION | 9 Months Ended |
Oct. 29, 2017 | |
FINANCIAL STATEMENTS - BASIS OF PRESENTATION | NOTE A. FINANCIAL STATEMENTS - BASIS OF PRESENTATION These financial statements include Williams-Sonoma, Inc. and its wholly owned subsidiaries (“we,” “us” or “our”). The Condensed Consolidated Balance Sheets as of October 29, 2017 and October 30, 2016, the Condensed Consolidated Statements of Earnings, the Condensed Consolidated Statements of Comprehensive Income for the thirteen and thirty-nine weeks then ended, and the Condensed Consolidated Statements of Cash Flows for the thirty-nine weeks then ended, have been prepared by us, without audit. In our opinion, the financial statements include all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at the balance sheet dates and the results of operations for the thirteen and thirty-nine weeks then ended. Intercompany transactions and accounts have been eliminated. The balance sheet as of January 29, 2017, presented herein, has been derived from our audited Consolidated Balance Sheet included in our Annual Report on Form 10-K The results of operations for the thirteen and thirty-nine weeks ended October 29, 2017 are not necessarily indicative of the operating results of the full year. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations 2016-10, Identifying Performance Obligations and Licensing 2014-09 In February 2016, the FASB issued ASU 2016-02, Leases right-of-use In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other than Inventory In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities non-financial |
BORROWING ARRANGEMENTS
BORROWING ARRANGEMENTS | 9 Months Ended |
Oct. 29, 2017 | |
BORROWING ARRANGEMENTS | NOTE B. BORROWING ARRANGEMENTS Credit Facility We have a $500,000,000 unsecured revolving line of credit (“credit facility”) that may be used to borrow revolving loans or request the issuance of letters of credit. We may, upon notice to the administrative agent, request existing or new lenders to increase the credit facility by up to $250,000,000, at such lenders’ option, to provide for a total of $750,000,000 of unsecured revolving credit. As of October 29, 2017, we were in compliance with our financial covenants under the credit facility and, based on current projections, we expect to remain in compliance throughout the next 12 months. The credit facility matures on November 19, 2019, at which time all outstanding borrowings must be repaid and all outstanding letters of credit must be cash collateralized. We may elect interest rates calculated at (i) Bank of America’s prime rate (or, if greater, the average rate on overnight federal funds plus one-half year-to-date year-to-date Letter of Credit Facilities We have three unsecured letter of credit reimbursement facilities for a total of $70,000,000, each of which matures on August 25, 2018. The letter of credit facilities contain covenants that are consistent with our unsecured revolving line of credit. Interest on unreimbursed amounts under the letter of credit facilities accrues at the lender’s prime rate (or, if greater, the average rate on overnight federal funds plus one-half |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Oct. 29, 2017 | |
STOCK-BASED COMPENSATION | NOTE C. STOCK-BASED COMPENSATION Equity Award Programs Our Amended and Restated 2001 Long-Term Incentive Plan (the “Plan”) provides for grants of incentive stock options, nonqualified stock options, stock-settled stock appreciation rights (collectively, “option awards”), restricted stock awards, restricted stock units (including those that are performance-based), deferred stock awards (collectively, “stock awards”) and dividend equivalents up to an aggregate of 32,310,000 shares. As of October 29, 2017, there were approximately 6,000,000 shares available for future grant. Awards may be granted under the Plan to our officers, employees and non-employee Option Awards Annual grants of option awards are limited to 1,000,000 shares on a per person basis and have a maximum term of seven years. The exercise price of these option awards is not less than 100% of the closing price of our stock on the day prior to the grant date. Option awards granted to employees generally vest evenly over a period of four years for service-based awards. Certain option awards contain vesting acceleration clauses resulting from events including, but not limited to, retirement, merger or a similar corporate event. Stock Awards Annual grants of stock awards are limited to 1,000,000 shares on a per person basis and have a maximum term of seven years. Stock awards granted to employees generally vest evenly over a period of four years for service-based awards. Certain performance-based awards, which have variable payout conditions based on predetermined financial targets, vest three years from the date of grant. Certain stock awards and other agreements contain vesting acceleration clauses resulting from events including, but not limited to, retirement, merger or a similar corporate event. Stock awards granted to non-employee Non-employee non-employee Stock-Based Compensation Expense During the thirteen and thirty-nine weeks ended October 29, 2017, we recognized total stock-based compensation expense, as a component of selling, general and administrative expenses, of $7,335,000 and $30,164,000, respectively. During the thirteen and thirty-nine weeks ended October 30, 2016, we recognized total stock-based compensation expense, as a component of selling, general and administrative expenses, of $10,499,000 and $37,975,000, respectively. Stock-Settled Stock Appreciation Rights A stock-settled stock appreciation right is an award that allows the recipient to receive common stock equal to the appreciation in the fair market value of our common stock between the grant date and the conversion date for the number of shares converted. The following table summarizes our stock-settled stock appreciation right activity during the thirty-nine weeks ended October 29, 2017: Shares Balance at January 29, 2017 (100% vested) 411,710 Granted — Converted into common stock (79,331 ) Cancelled — Balance at October 29, 2017 (100% vested) 332,379 Restricted Stock Units The following table summarizes our restricted stock unit activity during the thirty-nine weeks ended October 29, 2017: Shares Balance at January 29, 2017 2,232,486 Granted 1,486,395 Released (636,686 ) Cancelled (688,354 ) Balance at October 29, 2017 2,393,841 Vested plus expected to vest at October 29, 2017 1,710,333 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Oct. 29, 2017 | |
EARNINGS PER SHARE | NOTE D. EARNINGS PER SHARE Basic earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding and common stock equivalents for the period. Common stock equivalents consist of shares subject to stock-based awards with exercise prices less than or equal to the average market price of our common stock for the period, to the extent their inclusion would be dilutive. The following is a reconciliation of net earnings and the number of shares used in the basic and diluted earnings per share computations: In thousands, except per share amounts Net Earnings Weighted Average Shares Earnings Per Share Thirteen weeks ended October 29, 2017 Basic $ 71,313 84,940 $ 0.84 Effect of dilutive stock-based awards 444 Diluted $ 71,313 85,384 $ 0.84 Thirteen weeks ended October 30, 2016 Basic $ 69,378 88,382 $ 0.78 Effect of dilutive stock-based awards 762 Diluted $ 69,378 89,144 $ 0.78 Thirty-nine weeks ended October 29, 2017 Basic $ 163,785 86,111 $ 1.90 Effect of dilutive stock-based awards 471 Diluted $ 163,785 86,582 $ 1.89 Thirty-nine weeks ended October 30, 2016 Basic $ 160,760 88,906 $ 1.81 Effect of dilutive stock-based awards 858 Diluted $ 160,760 89,764 $ 1.79 Stock-based awards of 994,000 and 1,052,000 were excluded from the computation of diluted earnings per share for the thirteen and thirty-nine weeks ended October 29, 2017, respectively, as their inclusion would be anti-dilutive. Stock-based awards of 610,000 and 540,000 were excluded from the computation of diluted earnings per share for the thirteen and thirty-nine weeks ended October 30, 2016, respectively, as their inclusion would be anti-dilutive. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Oct. 29, 2017 | |
SEGMENT REPORTING | NOTE E. SEGMENT REPORTING We have two reportable segments, e-commerce e-commerce e-commerce e-commerce e-commerce. These reportable segments are strategic business units that offer similar products for the home. They are managed separately because the business units utilize two distinct distribution and marketing strategies. Based on management’s best estimate, our operating segments include allocations of certain expenses, including advertising and employment costs, to the extent they have been determined to benefit both channels. These operating segments are aggregated at the channel level for reporting purposes due to the fact that our brands are interdependent for economies of scale and we do not maintain fully allocated income statements at the brand level. As a result, material financial decisions related to the brands are made at the channel level. Furthermore, it is not practicable for us to report revenue by product group. We use operating income to evaluate segment profitability. Operating income is defined as earnings (loss) before net interest income (expense) and income taxes. Unallocated costs before interest and income taxes include corporate employee-related costs, occupancy expenses (including depreciation expense), administrative costs and third-party service costs, primarily in our corporate administrative and systems departments. Unallocated assets include corporate cash and cash equivalents, prepaid expenses, the net book value of corporate facilities and related information systems, deferred income taxes and other corporate long-lived assets. Income taxes are calculated at an entity level and are not allocated to our reportable segments. Segment Information In thousands E-commerce Retail Unallocated Total Thirteen weeks ended October 29, 2017 Net revenues 1 $ 690,045 $ 609,291 $ — $ 1,299,336 Depreciation and amortization expense 6,870 22,555 16,000 45,425 Operating income (loss) 142,865 42,804 (74,856 ) 110,813 Capital expenditures 13,184 22,066 17,844 53,094 Thirteen weeks ended October 30, 2016 Net revenues 1 $ 648,743 $ 596,642 $ — $ 1,245,385 Depreciation and amortization expense 7,812 21,676 14,888 44,376 Operating income (loss) 2 150,164 47,080 (87,265 ) 109,979 Capital expenditures 5,231 25,820 18,241 49,292 Thirty-nine weeks ended October 29, 2017 Net revenues 1 $ 1,901,348 $ 1,711,101 $ — $ 3,612,449 Depreciation and amortization expense 20,625 67,282 47,566 135,473 Operating income (loss) 2 410,008 99,110 (254,247 ) 254,871 Assets 3 732,842 1,156,117 691,425 2,580,384 Capital expenditures 24,173 61,851 49,797 135,821 Thirty-nine weeks ended October 30, 2016 Net revenues 1 $ 1,824,660 $ 1,677,571 $ — $ 3,502,231 Depreciation and amortization expense 23,415 63,764 40,566 127,745 Operating income (loss) 2 414,442 110,422 (268,084 ) 256,780 Assets 3 664,105 1,118,913 670,314 2,453,332 Capital expenditures 13,673 64,699 48,797 127,169 1 Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom and our franchise businesses) of approximately $84.1 million and $82.8 million for the thirteen weeks ended October 29, 2017 and October 30, 2016, respectively, and $234.1 million and $232.5 million for the thirty-nine weeks ended October 29, 2017 and October 30, 2016, respectively. 2 Includes $5.7 million of severance-related charges for the thirty-nine weeks ended October 29, 2017 and $1.2 million and $14.4 million of severance-related charges for the thirteen and thirty-nine weeks ended October 30, 2016, respectively, primarily in our corporate functions, which is recorded in selling, general and administrative expenses within the unallocated segment. 3 Includes long-term assets related to our international operations of approximately $58.5 million and $59.2 million as of October 29, 2017 and October 30, 2016, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Oct. 29, 2017 | |
COMMITMENTS AND CONTINGENCIES | NOTE F. COMMITMENTS AND CONTINGENCIES We are involved in lawsuits, claims and proceedings incident to the ordinary course of our business. These disputes, which are not currently material, are increasing in number as our business expands and our company grows. We review the need for any loss contingency reserves and establish reserves when, in the opinion of management, it is probable that a matter would result in liability, and the amount of loss, if any, can be reasonably estimated. In view of the inherent difficulty of predicting the outcome of these matters, it may not be possible to determine whether any loss is probable or to reasonably estimate the amount of the loss until the case is close to resolution, in which case no reserve is established until that time. Any claims against us, whether meritorious or not, could result in costly litigation, require significant amounts of management time and result in the diversion of significant operational resources. The results of these lawsuits, claims and proceedings cannot be predicted with certainty. However, we believe that the ultimate resolution of these current matters will not have a material adverse effect on our Consolidated Financial Statements taken as a whole. |
STOCK REPURCHASE PROGRAM AND DI
STOCK REPURCHASE PROGRAM AND DIVIDENDS | 9 Months Ended |
Oct. 29, 2017 | |
STOCK REPURCHASE PROGRAM AND DIVIDENDS | NOTE G. STOCK REPURCHASE PROGRAM AND DIVIDENDS Stock Repurchase Program During the thirteen weeks ended October 29, 2017, we repurchased 1,301,373 shares of our common stock at an average cost of $46.84 per share for a total cost of approximately $60,960,000. During the thirty-nine weeks ended October 29, 2017, we repurchased 3,226,297 shares of our common stock at an average cost of $47.83 per share for a total cost of approximately $154,321,000. As of October 29, 2017, we held treasury stock of approximately $725,000 that represents the cost of shares available for issuance intended to satisfy future stock-based award settlements in certain foreign jurisdictions. During the thirteen weeks ended October 30, 2016, we repurchased 771,327 shares of our common stock at an average cost of $50.56 per share for a total cost of approximately $39,001,000. During the thirty-nine weeks ended October 30, 2016, we repurchased 2,164,473 shares of our common stock at an average cost of $53.21 per share for a total cost of approximately $115,167,000. Stock repurchases under our program may be made through open market and privately negotiated transactions at times and in such amounts as management deems appropriate. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, capital availability and other market conditions. The stock repurchase program does not have an expiration date and may be limited or terminated at any time without prior notice. Dividends We declared cash dividends of $0.39 and $0.37 per common share during the thirteen weeks ended October 29, 2017 and October 30, 2016, respectively. We declared cash dividends of $1.17 and $1.11 per common share during the thirty-nine weeks ended October 29, 2017 and October 30, 2016, respectively. Our quarterly cash dividend may be limited or terminated at any time. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Oct. 29, 2017 | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE H. DERIVATIVE FINANCIAL INSTRUMENTS We have retail and/or e-commerce Derivatives and Hedging Cash Flow Hedges We enter into foreign currency forward contracts designated as cash flow hedges (to sell Canadian dollars and purchase U.S. dollars) for forecasted inventory purchases in U.S. dollars by our foreign subsidiaries. These hedges have terms of up to 18 months. All hedging relationships are formally documented, and the forward contracts are designed to mitigate foreign currency exchange risk on hedged transactions. We record the effective portion of changes in the fair value of our cash flow hedges in other comprehensive income (“OCI”) until the earlier of when the hedged forecasted inventory purchase occurs or the respective contract reaches maturity. Subsequently, as the inventory is sold to the customer, we reclassify amounts previously recorded in OCI to cost of goods sold. Changes in the fair value of the forward contract related to interest charges (or forward points) are excluded from the assessment and measurement of hedge effectiveness and are recorded immediately in selling, general and administrative expenses. Based on the rates in effect as of October 29, 2017, we expect to reclassify a net pre-tax We also enter into non-designated As of October 29, 2017 and October 30, 2016, we had foreign currency forward contracts outstanding (in U.S. dollars) with notional values as follows: In thousands October 29, 2017 October 30, 2016 Contracts designated as cash flow hedges $ 23,000 $ 29,000 Contracts not designated as cash flow hedges $ 48,000 $ 46,000 Hedge effectiveness is evaluated prospectively at inception, on an ongoing basis, as well as retrospectively using regression analysis. Any measurable ineffectiveness of the hedge is recorded in selling, general and administrative expenses. No gain or loss was recognized for cash flow hedges due to hedge ineffectiveness and all hedges were deemed effective for assessment purposes for the thirteen and thirty-nine weeks ended October 29, 2017 and October 30, 2016. The effect of derivative instruments in our Condensed Consolidated Financial Statements during the thirteen and thirty-nine weeks ended October 29, 2017 and October 30, 2016, pre-tax, In thousands Thirteen Thirteen Thirty-nine Thirty-nine Net gain (loss) recognized in OCI $ 506 $ 704 $ (190 ) $ (795 ) Net gain (loss) reclassified from OCI into cost of $ 173 $ (406 ) $ 185 $ 53 Net foreign exchange gain (loss) recognized in Instruments designated as cash flow hedges 1 $ 20 $ (22 ) $ 75 $ (12 ) Instruments not designated or de-designated $ 1,752 $ (566 ) $ (1,096 ) $ (3,599 ) 1 Changes in fair value of the forward contract related to interest charges (or forward points). The fair values of our derivative financial instruments are presented below according to their classification in our Condensed Consolidated Balance Sheets. All fair values were measured using Level 2 inputs as defined by the fair value hierarchy described in Note I. In thousands October 29, 2017 October 30, 2016 Derivatives designated as cash flow hedges: Other current assets $ 161 $ 653 Other long-term assets $ 25 $ 176 Other current liabilities $ (131 ) $ (328 ) Other long-term liabilities $ (11 ) $ — Derivatives not designated as hedging instruments: Other current assets $ 209 $ 314 We record all derivative assets and liabilities on a gross basis. They do not meet the balance sheet netting criteria as discussed in ASC 210, Balance Sheet |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Oct. 29, 2017 | |
FAIR VALUE MEASUREMENTS | NOTE I. FAIR VALUE MEASUREMENTS Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We determine the fair value of financial and non-financial Fair Value Measurement • Level 1: inputs which include quoted prices in active markets for identical assets or liabilities; • Level 2: inputs which include observable inputs other than Level 1 inputs, such as quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability; and • Level 3: inputs which include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. The fair values of our cash and cash equivalents are based on Level 1 inputs, which include quoted prices in active markets for identical assets. Foreign Currency Derivatives and Hedging Instruments We use the income approach to value our derivatives using observable Level 2 market data at the measurement date and standard valuation techniques to convert future amounts to a single present value amount, assuming that participants are motivated but not compelled to transact. Level 2 inputs are limited to quoted prices that are observable for the assets and liabilities, which include interest rates and credit risk ratings. We use mid-market The counterparties associated with our foreign currency forward contracts are large credit-worthy financial institutions, and the derivatives transacted with these entities are relatively short in duration, therefore, we do not consider counterparty concentration and non-performance Property and Equipment We review the carrying value of all long-lived assets for impairment, primarily at an individual store level, whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. We measure these assets at fair value on a nonrecurring basis using Level 3 inputs as defined in the fair value hierarchy. The fair value is based on the present value of estimated future cash flows using a discount rate that approximates our weighted average cost of capital. There were no transfers between Level 1, 2 or 3 categories during the thirteen and thirty-nine weeks ended October 29, 2017 or October 30, 2016. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Oct. 29, 2017 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | NOTE J. ACCUMULATED OTHER COMPREHENSIVE INCOME Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows: In thousands Foreign Currency Cash Flow Accumulated Other Balance at January 29, 2017 $ (9,957 ) $ 54 $ (9,903 ) Foreign currency translation adjustments (1,566 ) — (1,566 ) Change in fair value of derivative financial instruments — 655 655 Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — (16 ) (16 ) Other comprehensive income (loss) (1,566 ) 639 (927 ) Balance at April 30, 2017 (11,523 ) 693 (10,830 ) Foreign currency translation adjustments 3,390 — 3,390 Change in fair value of derivative financial instruments — (1,166 ) (1,166 ) Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — 7 7 Other comprehensive income (loss) 3,390 (1,159 ) 2,231 Balance at July 30, 2017 (8,133 ) (466 ) (8,599 ) Foreign currency translation adjustments 40 — 40 Change in fair value of derivative financial instruments — 373 373 Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — (128 ) (128 ) Other comprehensive income (loss) 40 245 285 Balance at October 29, 2017 $ (8,093 ) $ (221 ) $ (8,314 ) Balance at January 31, 2016 $ (11,480 ) $ 864 $ (10,616 ) Foreign currency translation adjustments 5,208 — 5,208 Change in fair value of derivative financial instruments — (2,165 ) (2,165 ) Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — (302 ) (302 ) Other comprehensive income (loss) 5,208 (2,467 ) 2,741 Balance at May 1, 2016 (6,272 ) (1,603 ) (7,875 ) Foreign currency translation adjustments (3,005 ) — (3,005 ) Change in fair value of derivative financial instruments — 1,058 1,058 Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — (38 ) (38 ) Other comprehensive income (loss) (3,005 ) 1,020 (1,985 ) Balance at July 31, 2016 (9,277 ) (583 ) (9,860 ) Foreign currency translation adjustments (1,731 ) — (1,731 ) Change in fair value of derivative financial instruments — 520 520 Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — 299 299 Other comprehensive income (loss) (1,731 ) 819 (912 ) Balance at October 30, 2016 $ (11,008 ) $ 236 $ (10,772 ) 1 Refer to Note H for additional disclosures about reclassifications out of accumulated other comprehensive income and their corresponding effects on the respective line items in the Condensed Consolidated Statements of Earnings. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Oct. 29, 2017 | |
SUBSEQUENT EVENT | NOTE K. SUBSEQUENT EVENT On December 1, 2017, we acquired Outward, Inc., a 3-D |
FINANCIAL STATEMENTS - BASIS 19
FINANCIAL STATEMENTS - BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Oct. 29, 2017 | |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations 2016-10, Identifying Performance Obligations and Licensing 2014-09 In February 2016, the FASB issued ASU 2016-02, Leases right-of-use In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other than Inventory In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities non-financial |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Oct. 29, 2017 | |
Summary of Stock-Settled Stock Appreciation Right Activity | The following table summarizes our stock-settled stock appreciation right activity during the thirty-nine weeks ended October 29, 2017: Shares Balance at January 29, 2017 (100% vested) 411,710 Granted — Converted into common stock (79,331 ) Cancelled — Balance at October 29, 2017 (100% vested) 332,379 |
Summary of Restricted Stock Unit Activity | The following table summarizes our restricted stock unit activity during the thirty-nine weeks ended October 29, 2017: Shares Balance at January 29, 2017 2,232,486 Granted 1,486,395 Released (636,686 ) Cancelled (688,354 ) Balance at October 29, 2017 2,393,841 Vested plus expected to vest at October 29, 2017 1,710,333 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Oct. 29, 2017 | |
Reconciliation of Net Earnings and Number of Shares Used In Basic and Diluted Earnings per Share Computations | The following is a reconciliation of net earnings and the number of shares used in the basic and diluted earnings per share computations: In thousands, except per share amounts Net Earnings Weighted Average Shares Earnings Per Share Thirteen weeks ended October 29, 2017 Basic $ 71,313 84,940 $ 0.84 Effect of dilutive stock-based awards 444 Diluted $ 71,313 85,384 $ 0.84 Thirteen weeks ended October 30, 2016 Basic $ 69,378 88,382 $ 0.78 Effect of dilutive stock-based awards 762 Diluted $ 69,378 89,144 $ 0.78 Thirty-nine weeks ended October 29, 2017 Basic $ 163,785 86,111 $ 1.90 Effect of dilutive stock-based awards 471 Diluted $ 163,785 86,582 $ 1.89 Thirty-nine weeks ended October 30, 2016 Basic $ 160,760 88,906 $ 1.81 Effect of dilutive stock-based awards 858 Diluted $ 160,760 89,764 $ 1.79 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Oct. 29, 2017 | |
Segment Information | Segment Information In thousands E-commerce Retail Unallocated Total Thirteen weeks ended October 29, 2017 Net revenues 1 $ 690,045 $ 609,291 $ — $ 1,299,336 Depreciation and amortization expense 6,870 22,555 16,000 45,425 Operating income (loss) 142,865 42,804 (74,856 ) 110,813 Capital expenditures 13,184 22,066 17,844 53,094 Thirteen weeks ended October 30, 2016 Net revenues 1 $ 648,743 $ 596,642 $ — $ 1,245,385 Depreciation and amortization expense 7,812 21,676 14,888 44,376 Operating income (loss) 2 150,164 47,080 (87,265 ) 109,979 Capital expenditures 5,231 25,820 18,241 49,292 Thirty-nine weeks ended October 29, 2017 Net revenues 1 $ 1,901,348 $ 1,711,101 $ — $ 3,612,449 Depreciation and amortization expense 20,625 67,282 47,566 135,473 Operating income (loss) 2 410,008 99,110 (254,247 ) 254,871 Assets 3 732,842 1,156,117 691,425 2,580,384 Capital expenditures 24,173 61,851 49,797 135,821 Thirty-nine weeks ended October 30, 2016 Net revenues 1 $ 1,824,660 $ 1,677,571 $ — $ 3,502,231 Depreciation and amortization expense 23,415 63,764 40,566 127,745 Operating income (loss) 2 414,442 110,422 (268,084 ) 256,780 Assets 3 664,105 1,118,913 670,314 2,453,332 Capital expenditures 13,673 64,699 48,797 127,169 1 Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom and our franchise businesses) of approximately $84.1 million and $82.8 million for the thirteen weeks ended October 29, 2017 and October 30, 2016, respectively, and $234.1 million and $232.5 million for the thirty-nine weeks ended October 29, 2017 and October 30, 2016, respectively. 2 Includes $5.7 million of severance-related charges for the thirty-nine weeks ended October 29, 2017 and $1.2 million and $14.4 million of severance-related charges for the thirteen and thirty-nine weeks ended October 30, 2016, respectively, primarily in our corporate functions, which is recorded in selling, general and administrative expenses within the unallocated segment. 3 Includes long-term assets related to our international operations of approximately $58.5 million and $59.2 million as of October 29, 2017 and October 30, 2016, respectively. |
DERIVATIVE FINANCIAL INSTRUME23
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Oct. 29, 2017 | |
Foreign Currency Forward Contracts Outstanding with Notional Values | As of October 29, 2017 and October 30, 2016, we had foreign currency forward contracts outstanding (in U.S. dollars) with notional values as follows: In thousands October 29, 2017 October 30, 2016 Contracts designated as cash flow hedges $ 23,000 $ 29,000 Contracts not designated as cash flow hedges $ 48,000 $ 46,000 |
Effect of Derivative Instruments in Condensed Consolidated Financial Statements | The effect of derivative instruments in our Condensed Consolidated Financial Statements during the thirteen and thirty-nine weeks ended October 29, 2017 and October 30, 2016, pre-tax, In thousands Thirteen Thirteen Thirty-nine Thirty-nine Net gain (loss) recognized in OCI $ 506 $ 704 $ (190 ) $ (795 ) Net gain (loss) reclassified from OCI into cost of $ 173 $ (406 ) $ 185 $ 53 Net foreign exchange gain (loss) recognized in Instruments designated as cash flow hedges 1 $ 20 $ (22 ) $ 75 $ (12 ) Instruments not designated or de-designated $ 1,752 $ (566 ) $ (1,096 ) $ (3,599 ) 1 Changes in fair value of the forward contract related to interest charges (or forward points). |
Fair Values of Derivative Instruments | The fair values of our derivative financial instruments are presented below according to their classification in our Condensed Consolidated Balance Sheets. All fair values were measured using Level 2 inputs as defined by the fair value hierarchy described in Note I. In thousands October 29, 2017 October 30, 2016 Derivatives designated as cash flow hedges: Other current assets $ 161 $ 653 Other long-term assets $ 25 $ 176 Other current liabilities $ (131 ) $ (328 ) Other long-term liabilities $ (11 ) $ — Derivatives not designated as hedging instruments: Other current assets $ 209 $ 314 |
ACCUMULATED OTHER COMPREHENSI24
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Oct. 29, 2017 | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax | Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows: In thousands Foreign Currency Cash Flow Accumulated Other Balance at January 29, 2017 $ (9,957 ) $ 54 $ (9,903 ) Foreign currency translation adjustments (1,566 ) — (1,566 ) Change in fair value of derivative financial instruments — 655 655 Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — (16 ) (16 ) Other comprehensive income (loss) (1,566 ) 639 (927 ) Balance at April 30, 2017 (11,523 ) 693 (10,830 ) Foreign currency translation adjustments 3,390 — 3,390 Change in fair value of derivative financial instruments — (1,166 ) (1,166 ) Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — 7 7 Other comprehensive income (loss) 3,390 (1,159 ) 2,231 Balance at July 30, 2017 (8,133 ) (466 ) (8,599 ) Foreign currency translation adjustments 40 — 40 Change in fair value of derivative financial instruments — 373 373 Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — (128 ) (128 ) Other comprehensive income (loss) 40 245 285 Balance at October 29, 2017 $ (8,093 ) $ (221 ) $ (8,314 ) Balance at January 31, 2016 $ (11,480 ) $ 864 $ (10,616 ) Foreign currency translation adjustments 5,208 — 5,208 Change in fair value of derivative financial instruments — (2,165 ) (2,165 ) Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — (302 ) (302 ) Other comprehensive income (loss) 5,208 (2,467 ) 2,741 Balance at May 1, 2016 (6,272 ) (1,603 ) (7,875 ) Foreign currency translation adjustments (3,005 ) — (3,005 ) Change in fair value of derivative financial instruments — 1,058 1,058 Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — (38 ) (38 ) Other comprehensive income (loss) (3,005 ) 1,020 (1,985 ) Balance at July 31, 2016 (9,277 ) (583 ) (9,860 ) Foreign currency translation adjustments (1,731 ) — (1,731 ) Change in fair value of derivative financial instruments — 520 520 Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — 299 299 Other comprehensive income (loss) (1,731 ) 819 (912 ) Balance at October 30, 2016 $ (11,008 ) $ 236 $ (10,772 ) 1 Refer to Note H for additional disclosures about reclassifications out of accumulated other comprehensive income and their corresponding effects on the respective line items in the Condensed Consolidated Statements of Earnings. |
Borrowing Arrangements - Additi
Borrowing Arrangements - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2017 | Oct. 30, 2016 | Oct. 29, 2017 | Oct. 30, 2016 | |
Debt Instrument [Line Items] | ||||
Additional percentage over reference rate | 2.00% | |||
Interest rate description | Interest on unreimbursed amounts under the letter of credit facilities accrues at the lender’s prime rate (or, if greater, the average rate on overnight federal funds plus one-half of one percent) plus 2.0%. | |||
Amount of borrowings under credit facility during period | $ 55,000,000 | $ 0 | $ 170,000,000 | $ 125,000,000 |
Maximum borrowing capacity under letter of credit facilities including additional borrowing capacity | 70,000,000 | $ 70,000,000 | ||
Letter of credit facilities, maturity date | Aug. 25, 2018 | |||
Outstanding letter of credit facilities | 8,392,000 | $ 8,392,000 | ||
Latest expiration date possible for future letters of credit | Jan. 22, 2019 | |||
Standby Letters of Credit | ||||
Debt Instrument [Line Items] | ||||
Amount issued but undrawn under credit facility | 12,782,000 | $ 12,782,000 | ||
Federal Funds | ||||
Debt Instrument [Line Items] | ||||
Additional percentage over reference rate | 0.50% | |||
Unsecured Revolving Line Of Credit | ||||
Debt Instrument [Line Items] | ||||
Current borrowing capacity | 500,000,000 | $ 500,000,000 | ||
Maximum borrowing capacity including additional borrowing capacity | $ 750,000,000 | $ 750,000,000 | ||
Credit facility, maturity date | Nov. 19, 2019 | |||
Interest rate description | We may elect interest rates calculated at (i) Bank of America’s prime rate (or, if greater, the average rate on overnight federal funds plus one-half of one percent, or a rate based on LIBOR plus one percent) plus a margin based on our leverage ratio or (ii) LIBOR plus a margin based on our leverage ratio. | |||
Weighted average interest rate | 2.25% | 1.55% | 2.25% | 1.55% |
Unsecured Revolving Line Of Credit | Maximum | ||||
Debt Instrument [Line Items] | ||||
Additional borrowing capacity | $ 250,000,000 | $ 250,000,000 | ||
Unsecured Revolving Line Of Credit | Federal Funds | ||||
Debt Instrument [Line Items] | ||||
Additional percentage over reference rate | 0.50% | |||
Unsecured Revolving Line Of Credit | Libor | ||||
Debt Instrument [Line Items] | ||||
Additional percentage over reference rate | 1.00% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2017 | Oct. 30, 2016 | Oct. 29, 2017 | Oct. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum term of grants of option awards, years | 7 years | |||
Stock-based compensation expense | $ 7,335 | $ 10,499 | $ 30,164 | $ 37,975 |
Minimum | Non-Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of awards granted to employees, years | 1 year | |||
Option Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards annual grant limit | 1,000,000 | |||
Option Awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price as a percentage of closing price on the day prior to the grant date | 100.00% | |||
Service Based Option Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of awards granted to employees, years | 4 years | |||
Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards annual grant limit | 1,000,000 | |||
Maximum term of grants of stock awards, years | 7 years | |||
Service Based Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of awards granted to employees, years | 4 years | |||
Performance Based Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of awards granted to employees, years | 3 years | |||
Equity Award Programs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate number of shares under the Plan | 32,310,000 | 32,310,000 | ||
Shares available for future grant | 6,000,000 | 6,000,000 |
Summary of Stock-Settled Stock
Summary of Stock-Settled Stock Appreciation Right Activity (Detail) - Stock-Settled Stock Appreciation Rights | 9 Months Ended |
Oct. 29, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance at January 29, 2017 (100% vested) | 411,710 |
Granted, shares | 0 |
Converted into common stock, shares | (79,331) |
Cancelled, shares | 0 |
Balance at October 29, 2017 (100% vested) | 332,379 |
Summary of Stock-Settled Stoc28
Summary of Stock-Settled Stock Appreciation Right Activity (Parenthetical) (Detail) | 9 Months Ended |
Oct. 29, 2017 | |
Stock-Settled Stock Appreciation Rights | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vested percentage | 100.00% |
Summary of Restricted Stock Uni
Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) | 9 Months Ended |
Oct. 29, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance at January 29, 2017 shares | 2,232,486 |
Granted, shares | 1,486,395 |
Released, shares | (636,686) |
Cancelled, shares | (688,354) |
Balance at October 29, 2017 shares | 2,393,841 |
Vested plus expected to vest at October 29, 2017 shares | 1,710,333 |
Reconciliation of Net Earnings
Reconciliation of Net Earnings and Number of Shares Used in Basic and Diluted Earnings Per Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2017 | Oct. 30, 2016 | Oct. 29, 2017 | Oct. 30, 2016 | |
Earnings Per Share [Line Items] | ||||
Net Earnings, Basic | $ 71,313 | $ 69,378 | $ 163,785 | $ 160,760 |
Net Earnings, Diluted | $ 71,313 | $ 69,378 | $ 163,785 | $ 160,760 |
Weighted Average Shares, Basic | 84,940 | 88,382 | 86,111 | 88,906 |
Weighted Average Shares, Effect of dilutive stock-based awards | 444 | 762 | 471 | 858 |
Weighted Average Shares, Diluted | 85,384 | 89,144 | 86,582 | 89,764 |
Earnings Per Share, Basic | $ 0.84 | $ 0.78 | $ 1.90 | $ 1.81 |
Earnings Per Share, Diluted | $ 0.84 | $ 0.78 | $ 1.89 | $ 1.79 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2017 | Oct. 30, 2016 | Oct. 29, 2017 | Oct. 30, 2016 | |
Earnings Per Share [Line Items] | ||||
Anti-dilutive stock-based awards excluded from the computation of diluted earnings per share | 994,000 | 610,000 | 1,052,000 | 540,000 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 9 Months Ended |
Oct. 29, 2017Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 2 |
Segment Information (Detail)
Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Oct. 29, 2017 | Oct. 30, 2016 | Oct. 29, 2017 | Oct. 30, 2016 | Jan. 29, 2017 | ||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | [1] | $ 1,299,336 | $ 1,245,385 | $ 3,612,449 | $ 3,502,231 | |||||
Depreciation and amortization expense | 45,425 | 44,376 | 135,473 | 127,745 | ||||||
Operating income (loss) | 110,813 | 109,979 | [2] | 254,871 | [2] | 256,780 | [2] | |||
Capital expenditures | 53,094 | 49,292 | 135,821 | 127,169 | ||||||
Assets | 2,580,384 | [3] | 2,453,332 | [3] | 2,580,384 | [3] | 2,453,332 | [3] | $ 2,476,879 | |
E-commerce | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | 690,045 | 648,743 | 1,901,348 | 1,824,660 | ||||||
Retail | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | 609,291 | 596,642 | 1,711,101 | 1,677,571 | ||||||
Operating Segments | E-commerce | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | [1] | 690,045 | 648,743 | 1,901,348 | 1,824,660 | |||||
Depreciation and amortization expense | 6,870 | 7,812 | 20,625 | 23,415 | ||||||
Operating income (loss) | 142,865 | 150,164 | [2] | 410,008 | [2] | 414,442 | [2] | |||
Capital expenditures | 13,184 | 5,231 | 24,173 | 13,673 | ||||||
Assets | [3] | 732,842 | 664,105 | 732,842 | 664,105 | |||||
Operating Segments | Retail | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | [1] | 609,291 | 596,642 | 1,711,101 | 1,677,571 | |||||
Depreciation and amortization expense | 22,555 | 21,676 | 67,282 | 63,764 | ||||||
Operating income (loss) | 42,804 | 47,080 | [2] | 99,110 | [2] | 110,422 | [2] | |||
Capital expenditures | 22,066 | 25,820 | 61,851 | 64,699 | ||||||
Assets | [3] | 1,156,117 | 1,118,913 | 1,156,117 | 1,118,913 | |||||
Unallocated | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Depreciation and amortization expense | 16,000 | 14,888 | 47,566 | 40,566 | ||||||
Operating income (loss) | (74,856) | (87,265) | [2] | (254,247) | [2] | (268,084) | [2] | |||
Capital expenditures | 17,844 | 18,241 | 49,797 | 48,797 | ||||||
Assets | [3] | $ 691,425 | $ 670,314 | $ 691,425 | $ 670,314 | |||||
[1] | Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom and our franchise businesses) of approximately $84.1 million and $82.8 million for the thirteen weeks ended October 29, 2017 and October 30, 2016, respectively, and $234.1 million and $232.5 million for the thirty-nine weeks ended October 29, 2017 and October 30, 2016, respectively. | |||||||||
[2] | Includes $5.7 million of severance-related charges for the thirty-nine weeks ended October 29, 2017 and $1.2 million and $14.4 million of severance-related charges for the thirteen and thirty-nine weeks ended October 30, 2016, respectively, primarily in our corporate functions, which is recorded in selling, general and administrative expenses within the unallocated segment. | |||||||||
[3] | Includes long-term assets related to our international operations of approximately $58.5 million and $59.2 million as of October 29, 2017 and October 30, 2016, respectively. |
Segment Information (Parentheti
Segment Information (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2017 | Oct. 30, 2016 | Oct. 29, 2017 | Oct. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Net revenues related to foreign operations | $ 84.1 | $ 82.8 | $ 234.1 | $ 232.5 |
Severance, related charges | 1.2 | 5.7 | 14.4 | |
Long-term assets related to foreign operations | $ 58.5 | $ 59.2 | $ 58.5 | $ 59.2 |
Stock Repurchase Program and 35
Stock Repurchase Program and Dividends - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 29, 2017 | Oct. 30, 2016 | Oct. 29, 2017 | Oct. 30, 2016 | Jan. 29, 2017 | |
Stock Repurchase Program and Dividend [Line Items] | |||||
Common stock repurchased, shares | 1,301,373 | 771,327 | 3,226,297 | 2,164,473 | |
Common stock repurchased, average cost per share | $ 46.84 | $ 50.56 | $ 47.83 | $ 53.21 | |
Common stock repurchased, total cost | $ 60,960 | $ 39,001 | $ 154,321 | $ 115,167 | |
Treasure stock, value | $ 725 | $ 1,383 | $ 725 | $ 1,383 | $ 1,380 |
Cash dividend, per common share | $ 0.39 | $ 0.37 | $ 1.17 | $ 1.11 |
Derivative Financial Instrume36
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2017 | Oct. 30, 2016 | Oct. 29, 2017 | Oct. 30, 2016 | |
Derivative [Line Items] | ||||
Reclassification from OCI to cost of goods sold | $ 301,000 | $ 301,000 | ||
Gain or loss recognized for cash flow hedges due to hedge ineffectiveness | $ 0 | $ 0 | $ 0 | $ 0 |
Foreign Currency Forward Contra
Foreign Currency Forward Contracts Outstanding with Notional Values (Detail) - Foreign Exchange Contract - USD ($) | Oct. 29, 2017 | Oct. 30, 2016 |
Derivatives Designated as Hedging Instruments | Cash Flow Hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Exchange of foreign currency contracts | $ 23,000,000 | $ 29,000,000 |
Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Exchange of foreign currency contracts | $ 48,000,000 | $ 46,000,000 |
Effect of Derivative Instrument
Effect of Derivative Instruments in Condensed Consolidated Financial Statements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 29, 2017 | Oct. 30, 2016 | Oct. 29, 2017 | Oct. 30, 2016 | ||
Derivative [Line Items] | |||||
Net gain (loss) recognized in OCI | $ 506 | $ 704 | $ (190) | $ (795) | |
Net gain (loss) reclassified from OCI into cost of goods sold | 173 | (406) | 185 | 53 | |
Net foreign exchange gain (loss) recognized in selling, general and administrative expenses, Instruments designated as cash flow hedges | [1] | 20 | (22) | 75 | (12) |
Net foreign exchange gain (loss) recognized in selling, general and administrative expenses, Instruments not designated or de-designated | $ 1,752 | $ (566) | $ (1,096) | $ (3,599) | |
[1] | Changes in fair value of the forward contract related to interest charges (or forward points). |
Fair Values of Derivative Instr
Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Oct. 29, 2017 | Oct. 30, 2016 |
Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives designated as cash flow hedges, Assets | $ 161 | $ 653 |
Derivatives not designated as hedging instruments, Assets | 209 | 314 |
Other Long-Term Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives designated as cash flow hedges, Assets | 25 | 176 |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives designated as cash flow hedges, Liabilities | (131) | $ (328) |
Other Long Term Liabilites | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives designated as cash flow hedges, Liabilities | $ (11) |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Oct. 29, 2017 | Jul. 30, 2017 | Apr. 30, 2017 | Oct. 30, 2016 | Jul. 31, 2016 | May 01, 2016 | Oct. 29, 2017 | Oct. 30, 2016 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Beginning Balance | $ (9,903) | $ (9,903) | |||||||
Foreign currency translation adjustments | $ 40 | $ (1,731) | 1,864 | $ 472 | |||||
Change in fair value of derivative financial instruments | 373 | 520 | (138) | (587) | |||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments | (128) | 299 | (137) | (41) | |||||
Ending Balance | (8,314) | (10,772) | (8,314) | (10,772) | |||||
Accumulated Foreign Currency Adjustment Attributable to Parent | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Beginning Balance | (8,133) | $ (11,523) | (9,957) | (9,277) | $ (6,272) | $ (11,480) | (9,957) | (11,480) | |
Foreign currency translation adjustments | 40 | 3,390 | (1,566) | (1,731) | (3,005) | 5,208 | |||
Other comprehensive income (loss) | 40 | 3,390 | (1,566) | (1,731) | (3,005) | 5,208 | |||
Ending Balance | (8,093) | (8,133) | (11,523) | (11,008) | (9,277) | (6,272) | (8,093) | (11,008) | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Beginning Balance | (466) | 693 | 54 | (583) | (1,603) | 864 | 54 | 864 | |
Change in fair value of derivative financial instruments | 373 | (1,166) | 655 | 520 | 1,058 | (2,165) | |||
Reclassification adjustment for realized (gain) loss on derivative financial instruments | [1] | (128) | 7 | (16) | 299 | (38) | (302) | ||
Other comprehensive income (loss) | 245 | (1,159) | 639 | 819 | 1,020 | (2,467) | |||
Ending Balance | (221) | (466) | 693 | 236 | (583) | (1,603) | (221) | 236 | |
Accumulated Other Comprehensive Income (Loss) | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Beginning Balance | (8,599) | (10,830) | (9,903) | (9,860) | (7,875) | (10,616) | (9,903) | (10,616) | |
Foreign currency translation adjustments | 40 | 3,390 | (1,566) | (1,731) | (3,005) | 5,208 | |||
Change in fair value of derivative financial instruments | 373 | (1,166) | 655 | 520 | 1,058 | (2,165) | |||
Reclassification adjustment for realized (gain) loss on derivative financial instruments | [1] | (128) | 7 | (16) | 299 | (38) | (302) | ||
Other comprehensive income (loss) | 285 | 2,231 | (927) | (912) | (1,985) | 2,741 | |||
Ending Balance | $ (8,314) | $ (8,599) | $ (10,830) | $ (10,772) | $ (9,860) | $ (7,875) | $ (8,314) | $ (10,772) | |
[1] | Refer to Note H for additional disclosures about reclassifications out of accumulated other comprehensive income and their corresponding effects on the respective line items in the Condensed Consolidated Statements of Earnings. |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) | Dec. 01, 2017USD ($) |
Subsequent Event | Outward Inc. | |
Subsequent Event [Line Items] | |
Payments to acquired business | $ 112,000,000 |