Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Apr. 30, 2022 | Jun. 03, 2022 | |
Document Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-08897 | |
Entity Registrant Name | BIG LOTS, INC. | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 06-1119097 | |
Entity Address, Address Line One | 4900 E. Dublin-Granville Road | |
Entity Address, City or Town | Columbus | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43081 | |
City Area Code | 614 | |
Local Phone Number | 278-6800 | |
Entity Central Index Key | 0000768835 | |
Title of 12(b) Security | Common shares | |
Trading Symbol | BIG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,917,471 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --01-31 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Filer Category | Large Accelerated Filer |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Net sales | $ 1,374,714 | $ 1,625,552 |
Cost of sales (exclusive of depreciation expense shown separately below) | 870,120 | 971,605 |
Gross margin | 504,594 | 653,947 |
Selling and administrative expenses | 480,779 | 497,418 |
Depreciation expense | 37,356 | 33,977 |
Operating (loss) profit | (13,541) | 122,552 |
Interest expense | (2,750) | (2,568) |
Other income (expense) | 1,040 | 960 |
(Loss) income before income taxes | (15,251) | 120,944 |
Income tax (benefit) expense | (4,169) | 26,381 |
Net (loss) income and comprehensive (loss) income | $ (11,082) | $ 94,563 |
Earnings (loss) per common share | ||
Earnings (loss) per common share - basic (in dollars per share) | $ (0.39) | $ 2.68 |
Earnings (loss) per common share - diluted (in dollars per share) | $ (0.39) | $ 2.62 |
Weighted-average common shares outstanding: | ||
Basic | 28,621 | 35,349 |
Dilutive effect of share-based awards | 0 | 693 |
Diluted | 28,621 | 36,042 |
Cash dividends declared per common share | $ 0.30 | $ 0.30 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Apr. 30, 2022 | Jan. 29, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 61,707 | $ 53,722 |
Inventories | 1,338,737 | 1,237,797 |
Other current assets | 125,362 | 119,449 |
Total current assets | 1,525,806 | 1,410,968 |
Operating lease right-of-use assets | 1,729,053 | 1,731,995 |
Property and equipment - net | 749,416 | 735,826 |
Deferred income taxes | 10,199 | 10,973 |
Other assets | 37,283 | 37,491 |
Total assets | 4,051,757 | 3,927,253 |
Current liabilities: | ||
Accounts payable | 488,524 | 587,496 |
Current operating lease liabilities | 233,683 | 242,275 |
Property, payroll, and other taxes | 95,920 | 90,728 |
Accrued operating expenses | 121,977 | 120,684 |
Insurance reserves | 36,227 | 36,748 |
Accrued salaries and wages | 24,745 | 45,762 |
Income taxes payable | 1,325 | 894 |
Total current liabilities | 1,002,401 | 1,124,587 |
Long-term debt | 270,800 | 3,500 |
Noncurrent operating lease liabilities | 1,577,932 | 1,569,713 |
Deferred income taxes | 22,854 | 21,413 |
Insurance reserves | 59,847 | 62,591 |
Unrecognized tax benefits | 10,623 | 10,557 |
Other liabilities | 126,972 | 127,529 |
Shareholders' equity: | ||
Preferred shares - authorized 2,000 shares; $0.01 par value; none issued | 0 | 0 |
Common shares - authorized 298,000 shares; $0.01 par value; issued 117,495 shares; outstanding 28,893 shares and 28,476 shares, respectively | 1,175 | 1,175 |
Treasury shares - 88,602 shares and 89,019 shares, respectively, at cost | (3,107,806) | (3,121,602) |
Additional paid-in capital | 619,754 | 640,522 |
Retained earnings | 3,467,205 | 3,487,268 |
Total shareholders' equity | 980,328 | 1,007,363 |
Total liabilities and shareholders' equity | $ 4,051,757 | $ 3,927,253 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Apr. 30, 2022 | Jan. 29, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Shares Authorized | 2,000 | 2,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Shares Authorized | 298,000 | 298,000 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares, Issued | 117,495 | 117,495 |
Common Stock, Shares, Outstanding | 28,893 | 28,476 |
Treasury Stock, Shares | 88,602 | 89,019 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Performance Shares [Member] | Common Stock [Member] | Common Stock [Member]Performance Shares [Member] | Treasury Stock [Member] | Treasury Stock [Member]Performance Shares [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]Performance Shares [Member] | Retained Earnings [Member] | Retained Earnings [Member]Performance Shares [Member] |
Balance at Jan. 30, 2021 | $ 1,277,731 | $ 1,175 | $ (2,709,259) | $ 634,813 | $ 3,351,002 | |||||
Balance (in shares) at Jan. 30, 2021 | 35,535 | |||||||||
Treasury stock (in shares) at Jan. 30, 2021 | 81,960 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Comprehensive income | 94,563 | $ 0 | $ 0 | 0 | 94,563 | |||||
Dividends declared | (11,206) | 0 | 0 | 0 | (11,206) | |||||
Purchases of common shares | (104,491) | $ 0 | $ (104,491) | 0 | 0 | |||||
Purchases of common shares, (in shares) | (1,538) | 1,538 | ||||||||
Restricted shares vested | 0 | $ 0 | $ 12,995 | (12,995) | 0 | |||||
Restricted shares vested, (in shares) | 390 | (390) | ||||||||
Performance shares vested | $ 0 | $ 0 | $ 17,770 | $ (17,770) | $ 0 | |||||
Performance shares vested (in shares) | 533 | (533) | ||||||||
Other | (2) | $ 0 | $ (2) | 0 | 0 | |||||
Other (in shares) | 0 | 0 | ||||||||
Share-based employee compensation expense | 11,907 | $ 0 | $ 0 | 11,907 | 0 | |||||
Balance at May. 01, 2021 | 1,268,502 | $ 1,175 | $ (2,782,987) | 615,955 | 3,434,359 | |||||
Balance (in shares) at May. 01, 2021 | 34,920 | |||||||||
Treasury stock (in shares) at May. 01, 2021 | 82,575 | |||||||||
Balance at Jan. 29, 2022 | $ 1,007,363 | $ 1,175 | $ (3,121,602) | 640,522 | 3,487,268 | |||||
Balance (in shares) at Jan. 29, 2022 | 28,476 | 28,476 | ||||||||
Treasury stock (in shares) at Jan. 29, 2022 | 89,019 | 89,019 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Comprehensive income | $ (11,082) | $ 0 | $ 0 | 0 | (11,082) | |||||
Dividends declared | (8,981) | 0 | 0 | 0 | (8,981) | |||||
Purchases of common shares | (10,639) | $ 0 | $ (10,639) | 0 | 0 | |||||
Purchases of common shares, (in shares) | (280) | 281 | ||||||||
Restricted shares vested | 0 | $ 0 | $ 12,483 | (12,483) | 0 | |||||
Restricted shares vested, (in shares) | 356 | (356) | ||||||||
Performance shares vested | $ 0 | $ 0 | $ 11,952 | $ (11,952) | $ 0 | |||||
Performance shares vested (in shares) | 341 | (342) | ||||||||
Share-based employee compensation expense | 3,667 | $ 0 | $ 0 | 3,667 | 0 | |||||
Balance at Apr. 30, 2022 | $ 980,328 | $ 1,175 | $ (3,107,806) | $ 619,754 | $ 3,467,205 | |||||
Balance (in shares) at Apr. 30, 2022 | 28,893 | 28,893 | ||||||||
Treasury stock (in shares) at Apr. 30, 2022 | 88,602 | 88,602 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared per common share | $ 0.30 | $ 0.30 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Operating activities: | ||
Net (loss) income | $ (11,082) | $ 94,563 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization expense | 37,631 | 34,116 |
Non-cash lease expense | 68,473 | 64,457 |
Deferred income taxes | 2,215 | (5,369) |
Non-cash impairment charge | 222 | 194 |
(Gain) loss on disposition of property and equipment | (1,568) | 780 |
Non-cash share-based compensation expense | 3,667 | 11,907 |
Unrealized gain on fuel derivatives | (699) | (1,005) |
Change in assets and liabilities | ||
Inventories | (100,940) | 38,813 |
Accounts payable | (98,972) | (17,492) |
Operating lease liabilities | (66,127) | (53,511) |
Current income taxes | (8,856) | 29,435 |
Other current assets | 3,908 | 1,294 |
Other current liabilities | (20,432) | 2,703 |
Other assets | 107 | 389 |
Other liabilities | (3,780) | 3,019 |
Net cash (used in) provided by operating activities | (196,233) | 204,293 |
Investing activities: | ||
Capital expenditures | (43,741) | (32,160) |
Cash proceeds from sale of property and equipment | 2,505 | 7 |
Other | (5) | (17) |
Net cash used in investing activities | (41,241) | (32,170) |
Financing activities: | ||
Net (proceeds from) repayments of long-term debt | 267,300 | (3,580) |
Payment of finance lease obligations | 497 | 1,293 |
Dividends paid | (10,705) | (12,460) |
Payment for treasury shares acquired | (10,639) | (101,016) |
Other | 0 | (1) |
Net cash provided by (used in) financing activities | 245,459 | (118,350) |
Increase in cash and cash equivalents | 7,985 | 53,773 |
Cash and cash equivalents: | ||
Beginning of period | 53,722 | 559,556 |
End of period | $ 61,707 | $ 613,329 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies Supplemental Cash Flow Disclosures | 3 Months Ended |
Apr. 30, 2022 | |
Other Significant Noncash Transactions [Line Items] | |
Schedule of Other Significant Noncash Transactions [Table Text Block] | The following table provides supplemental cash flow information for the first quarter of 2022 and the first quarter of 2021: Thirteen Weeks Ended (In thousands) April 30, 2022 May 1, 2021 Supplemental disclosure of cash flow information: Cash paid for interest $ 3,326 $ 468 Cash paid for income taxes, excluding impact of refunds 2,933 2,303 Gross proceeds from long-term debt 648,200 — Gross payments of long-term debt 380,900 3,580 Cash paid for operating lease liabilities 90,725 76,727 Non-cash activity: Share repurchases payable — 3,476 Assets acquired under finance leases 1,377 — Accrued property and equipment 26,073 26,306 Operating lease right-of-use assets obtained in exchange for operating lease liabilities 65,753 47,661 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES All references in this report to “we,” “us,” or “our” are to Big Lots, Inc. and its subsidiaries. We are a home discount retailer in the United States (“U.S.”). At April 30, 2022, we operated 1,434 stores in 47 states and an e-commerce platform. We make available, free of charge, through the “Investor Relations” section of our website ( www.biglots.com ) under the “SEC Filings” caption, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (“Exchange Act”), as soon as reasonably practicable after we file such material with, or furnish it to, the Securities and Exchange Commission (“SEC”). The contents of our websites are not part of this report. The accompanying consolidated financial statements and these notes have been prepared in accordance with the rules and regulations of the SEC for interim financial information. The consolidated financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly our financial condition, results of operations, and cash flows for all periods presented. The consolidated financial statements, however, do not include all information necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Interim results may not necessarily be indicative of results that may be expected for, or actually result during, any other interim period or for the year as a whole. We have historically experienced seasonal fluctuations, with a larger percentage of our net sales and operating profit realized in our fourth fiscal quarter. The accompanying consolidated financial statements and these notes should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended January 29, 2022 (“2021 Form 10-K”). Fiscal Periods Our fiscal year ends on the Saturday nearest to January 31, which results in fiscal years consisting of 52 or 53 weeks. Unless otherwise stated, references to years in this report relate to fiscal years rather than calendar years. Fiscal year 2022 (“2022”) is comprised of the 52 weeks that began on January 30, 2022 and will end on January 28, 2023. Fiscal year 2021 (“2021”) was comprised of the 52 weeks that began on January 31, 2021 and ended on January 29, 2022. The fiscal quarters ended April 30, 2022 (“first quarter of 2022”) and May 1, 2021 (“first quarter of 2021”) were both comprised of 13 weeks. Selling and Administrative Expenses Selling and administrative expenses include store expenses (such as payroll and occupancy costs) and costs related to warehousing, distribution, outbound transportation to our stores, advertising, purchasing, insurance, non-income taxes, accepting credit/debit cards, and overhead. Our selling and administrative expense rates may not be comparable to those of other retailers that include warehousing, distribution, and outbound transportation costs to stores in cost of sales. Distribution and outbound transportation costs included in selling and administrative expenses were $82.0 million and $66.2 million for the first quarter of 2022 and the first quarter of 2021, respectively. Advertising Expense Advertising costs, which are expensed as incurred, consist primarily of television and print advertising, digital, social media, internet and e-mail marketing and advertising, payment card-linked marketing and in-store point-of-purchase signage and presentations. Advertising expenses are included in selling and administrative expenses. Advertising expenses were $21.4 million and $21.8 million for the first quarter of 2022 and the first quarter of 2021, respectively. Supplemental Cash Flow Disclosures The following table provides supplemental cash flow information for the first quarter of 2022 and the first quarter of 2021: Thirteen Weeks Ended (In thousands) April 30, 2022 May 1, 2021 Supplemental disclosure of cash flow information: Cash paid for interest $ 3,326 $ 468 Cash paid for income taxes, excluding impact of refunds 2,933 2,303 Gross proceeds from long-term debt 648,200 — Gross payments of long-term debt 380,900 3,580 Cash paid for operating lease liabilities 90,725 76,727 Non-cash activity: Share repurchases payable — 3,476 Assets acquired under finance leases 1,377 — Accrued property and equipment 26,073 26,306 Operating lease right-of-use assets obtained in exchange for operating lease liabilities 65,753 47,661 Reclassifications We periodically assess, and make minor adjustments to, our product hierarchy, which can impact the roll-up of our merchandise categories. Our financial reporting process utilizes the most current product hierarchy in reporting net sales by merchandise category for all periods presented. Therefore, there may be minor reclassifications of net sales by merchandise category compared to previously reported amounts. Recent Accounting Pronouncements There are currently no new accounting pronouncements with a future effective date that are of significance, or potential significance, to us. |
Debt
Debt | 3 Months Ended |
Apr. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Bank Credit Facility On September 22, 2021, we entered into a $600 million five Borrowings under the Credit Agreement are available for general corporate purposes, working capital, and to repay certain indebtedness. The Credit Agreement includes a $50 million swing loan sublimit, a $75 million letter of credit sublimit, a $75 million sublimit for loans to foreign borrowers, and a $200 million optional currency sublimit. The Credit Agreement also contains an environmental, social and governance (“ESG”) provision, which may provide favorable pricing and fee adjustments if we meet ESG performance criteria to be established by a future amendment to the Credit Agreement. Under the Credit Agreement, we have the option to establish incremental term loans and/or increases in the revolving credit limits in an aggregate amount of up to $300 million, subject to the lenders agreeing to increase their commitments. Additionally, the Credit Agreement includes two options to extend the maturity date of the Credit Agreement by one year each, subject to each lender agreeing to extend the maturity date of its respective loans. The interest rates, pricing and fees under the Credit Agreement fluctuate based on our debt rating or leverage ratio, whichever results in more favorable pricing to us. The Credit Agreement allows us to select our interest rate for each borrowing from multiple interest rate options. The interest rate options are generally derived from the prime rate or LIBOR. The Credit Agreement updated the LIBOR fallback language to implement fallback provisions, pursuant to which the interest rate on the loans will transition to an alternative rate upon the occurrence of certain LIBOR cessation events. Loans made under the Credit Agreement may be prepaid without penalty. The Credit Agreement contains financial and other covenants, including, but not limited to, limitations on indebtedness, liens and investments, as well as the maintenance of two financial ratios – a leverage ratio and a fixed charge coverage ratio. The covenants of the Credit Agreement do not restrict our ability to pay dividends. Additionally, we are subject to cross-default provisions associated with the synthetic lease for our distribution center in Apple Valley, CA, which was amended concurrent with our entry into the Credit Agreement to conform with the covenants of the Credit Agreement. A violation of any of the covenants could result in a default under the Credit Agreement that would permit the lenders to restrict our ability to further access the Credit Agreement for loans and letters of credit and require the immediate repayment of any outstanding loans under the Credit Agreement. At April 30, 2022, we had $270.8 million in outstanding borrowings under the Credit Agreement and $5.0 million committed to outstanding letters of credit, leaving $324.2 million available under the Credit Agreement. The fair value of our long-term debt is estimated based on the quoted market prices for same or similar issues and the current interest rates offered for similar instruments. These fair value measurements are classified as Level 2 within the fair value hierarchy. Given the variable rate features and relatively short maturity of the instruments underlying our long-term debt, the carrying value of these instruments approximates their fair value. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Apr. 30, 2022 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Earnings per Share There were no adjustments required to be made to the weighted-average common shares outstanding for purposes of computing basic and diluted earnings per share for all periods presented. At May 1, 2021, all outstanding awards were included in our computation of earnings per share because the minimum applicable performance conditions had been attained. At April 30, 2022, performance share units that vest based on relative total shareholder return (“TSR PSUs” - see Note 4 for a more detailed description of these awards), were excluded from our computation of earnings per share because the minimum applicable performance conditions had not been attained. Antidilutive restricted stock units (“RSUs”), performance share units (“PSUs”), performance restricted share units (“PRSUs”), and TSR PSUs are excluded from the calculation because they decrease the number of diluted shares outstanding under the treasury stock method. The RSUs, PSUs, PRSUs, and TSR PSUs that were antidilutive, as determined under the treasury stock method, were 0.4 million and 0.1 million for the first quarter of 2022 and the first quarter of 2021, respectively. Due to the net loss in first quarter of 2022, any potentially dilutive shares were excluded from the denominator in computing diluted earnings (loss) per common share for the first quarter of 2022. Share Repurchase Programs On December 1, 2021, our Board of Directors authorized the repurchase of up to $250 million of our common shares (“2021 Repurchase Authorization”). Pursuant to the 2021 Repurchase Authorization, we may repurchase shares in the open market and/or in privately negotiated transactions at our discretion, subject to market conditions and other factors. The 2021 Repurchase Authorization has no scheduled termination date. In the first quarter of 2022, no shares were repurchased under the 2021 Repurchase Authorization. As of April 30, 2022, we had $159.4 million available for future repurchases under the 2021 Repurchase Authorization. Purchases of common shares reported in the consolidated statements of shareholders’ equity include shares acquired to satisfy income tax withholdings associated with the vesting of share-based awards. Dividends We declared and paid cash dividends per common share during the first quarter of 2022 as follows: Dividends Amount Declared Amount Paid 2022: (In thousands) (In thousands) First quarter $ 0.30 $ 8,981 $ 10,705 Total $ 0.30 $ 8,981 $ 10,705 The amount of dividends declared may vary from the amount of dividends paid in a period due to the vesting of RSUs and PSUs. The payment of future dividends will be at the discretion of our Board of Directors and will depend on our financial condition, results of operations, capital requirements, compliance with applicable laws and agreements and any other factors deemed relevant by our Board of Directors. |
Share-Based Plans
Share-Based Plans | 3 Months Ended |
Apr. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED PLANS | SHARE-BASED PLANS We have issued RSUs, PSUs, PRSUs, and TSR PSUs under our shareholder-approved equity compensation plans. We recognized share-based compensation expense of $3.7 million and $11.9 million in the first quarter of 2022 and the first quarter of 2021, respectively. As of April 30, 2022, there were no PRSUs outstanding. Non-vested Restricted Stock Units The following table summarizes the non-vested RSU activity for the first quarter of 2022: Number of Shares Weighted Average Grant-Date Fair Value Per Share Outstanding non-vested RSUs at January 29, 2022 909,287 $ 33.87 Granted 418,247 38.13 Vested (355,911) 29.29 Forfeited (23,271) 29.59 Outstanding non-vested RSUs at April 30, 2022 948,352 $ 37.52 The non-vested RSUs granted in the first quarter of 2022 generally vest and are expensed on a ratable basis over three years from the grant date of the award, if a threshold financial performance objective is achieved and the grantee remains employed by us through the vesting dates. Performance Share Units Prior to 2020, in 2021, and in the first quarter of 2022, we issued PSUs to certain members of management, which will vest if certain financial performance objectives are achieved over a three As a result of the process used to establish the financial performance objectives, we will only meet the requirements for establishing a grant date for PSUs when we communicate the financial performance objectives for the third fiscal year of the award to the award recipients, which will then trigger the service inception date, the fair value of the awards, and the associated expense recognition period. If we meet the applicable threshold financial performance objectives over the three-year performance period and the grantee remains employed by us through the end of the performance period, the PSUs will vest on the first trading day after we file our Annual Report on Form 10-K for the last fiscal year in the performance period. The number of shares to be distributed upon vesting of the PSUs depends on the average performance attained during the three-year performance period compared to the performance targets established by the Compensation Committee, and may result in the distribution of an amount of shares that is greater or less than the number of PSUs granted, as defined in the award agreement. In the first quarter of 2022, we also awarded TSR PSUs to certain members of management, which vest based on the achievement of total shareholder return (“TSR”) targets relative to a peer group over a three We have begun or expect to begin recognizing expense related to PSUs and TSR PSUs as follows: Issue Year Measurement Basis Outstanding PSUs and TSR PSUs at April 30, 2022 Actual Grant Date Expected Valuation (Grant) Date Actual or Expected Expense Period 2019 ROIC/EPS 6,109 March 2021 Fiscal 2021 2021 ROIC/EPS 170,426 March 2023 Fiscal 2023 2022 Relative TSR 68,231 March 2022 Fiscal 2022 - 2024 2022 ROIC/EPS 272,951 March 2024 Fiscal 2024 Total 517,717 During the first quarter of 2022, the PSUs issued in 2019 vested with an average performance attainment higher than the targets established. During the first quarters of 2022 and 2021, we recognized $0.1 million and $8.6 million in share-based compensation expense related to PSUs and TSR PSUs, respectively. The following table summarizes the activity related to PSUs and TSR PSUs for the first quarter of 2022: Number of Units Weighted Average Grant-Date Fair Value Per Share Outstanding PSUs and TSR PSUs at January 29, 2022 240,110 $ 70.24 Granted 68,231 58.09 Vested (234,001) 70.24 Forfeited — — Outstanding PSUs and TSR PSUs at April 30, 2022 74,340 $ 59.09 The following activity occurred under our share-based plans during the respective periods shown: First Quarter (In thousands) 2022 2021 Total fair value of restricted stock vested $ 12,631 $ 26,901 Total fair value of performance shares vested $ 13,753 $ 37,168 The total unearned compensation expense related to all share-based awards outstanding, excluding PSUs issued in 2021 and 2022, at April 30, 2022 was approximately $32.9 million. This compensation cost is expected to be recognized through March 2025 based on existing vesting terms with the weighted-average remaining expense recognition period being approximately 2.4 years from April 30, 2022. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES In 2021, the provision for income taxes was based on a current estimate of the annual effective tax rate, adjusted to reflect the effect of discrete items. For 2022, the Company's estimated annual effective tax rate has fluctuated with changes in estimated full-year pre-tax earnings due to uncertainty in our forecasted earnings resulting from an unpredictable retail landscape due to macroeconomic pressures, including cost inflation, and a decline in consumer discretionary spending . Differences between pre-tax and taxable income, such as non-deductible executive compensation, cause the effective income rate to vary significantly. Accordingly, the Company does not believe that it can estimate the annual effective tax rate for 2022 with sufficient precision and, as permitted by GAAP, has determined the income tax benefit for the first quarter of 2022 based upon the year-to-date pre-tax loss and the effect of differences between book and taxable loss. We have estimated the reasonably possible expected net change in unrecognized tax benefits through April 29, 2023, based on (1) expected cash and noncash settlements or payments of uncertain tax positions, and (2) lapses of the applicable statutes of limitations for unrecognized tax benefits. The estimated net decrease in unrecognized tax benefits for the next 12 months is approximately $4.0 million. Actual results may differ materially from this estimate. |
Contingencies
Contingencies | 3 Months Ended |
Apr. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES Legal Proceedings We are involved in legal actions and claims arising in the ordinary course of business. We currently believe that each such action and claim will be resolved without a material effect on our financial condition, results of operations, or liquidity. However, litigation involves an element of uncertainty. Future developments could cause these actions or claims to have a material effect on our financial condition, results of operations, and liquidity. |
Business Segment Data
Business Segment Data | 3 Months Ended |
Apr. 30, 2022 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT DATA | BUSINESS SEGMENT DATA We use the following seven merchandise categories, which are consistent with our internal management and reporting of merchandise net sales: Food; Consumables; Soft Home; Hard Home; Furniture; Seasonal; and Apparel, Electronics, & Other. The Food category includes our beverage & grocery; specialty foods; and pet departments. The Consumables category includes our health, beauty and cosmetics; plastics; paper; and chemical departments. The Soft Home category includes our home décor; frames; fashion bedding; utility bedding; bath; window; decorative textile; and area rugs departments. The Hard Home category includes our small appliances; table top; food preparation; stationery; home maintenance; home organization; and toys departments. The Furniture category includes our upholstery; mattress; ready-to-assemble; and case goods departments. The Seasonal category includes our lawn & garden; summer; Christmas; and other holiday departments. The Apparel, Electronics, & Other department includes our apparel; electronics; jewelry; hosiery; and candy & snacks departments, as well as the assortments for The Lot, our cross-category presentation solution, and the Queue Line, our streamlined checkout experience. We periodically assess, and make minor adjustments to, our product hierarchy, which can impact the roll-up of our merchandise categories. Our financial reporting process utilizes the most current product hierarchy in reporting net sales by merchandise category for all periods presented. Therefore, there may be minor reclassifications of net sales by merchandise category compared to previously reported amounts. The following table presents net sales data by merchandise category: First Quarter (In thousands) 2022 2021 Furniture $ 390,386 $ 481,431 Seasonal 234,171 303,918 Food 176,620 180,297 Soft Home 166,295 223,854 Consumables 155,310 162,388 Hard Home 129,284 152,198 Apparel, Electronics, & Other 122,648 121,466 Net sales $ 1,374,714 $ 1,625,552 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Period, Policy [Policy Text Block] | Fiscal Periods Our fiscal year ends on the Saturday nearest to January 31, which results in fiscal years consisting of 52 or 53 weeks. Unless otherwise stated, references to years in this report relate to fiscal years rather than calendar years. Fiscal year 2022 (“2022”) is comprised of the 52 weeks that began on January 30, 2022 and will end on January 28, 2023. Fiscal year 2021 (“2021”) was comprised of the 52 weeks that began on January 31, 2021 and ended on January 29, 2022. The fiscal quarters ended April 30, 2022 (“first quarter of 2022”) and May 1, 2021 (“first quarter of 2021”) were both comprised of 13 weeks. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | Selling and Administrative Expenses Selling and administrative expenses include store expenses (such as payroll and occupancy costs) and costs related to warehousing, distribution, outbound transportation to our stores, advertising, purchasing, insurance, non-income taxes, accepting credit/debit cards, and overhead. Our selling and administrative expense rates may not be comparable to those of other retailers that include warehousing, distribution, and outbound transportation costs to stores in cost of sales. Distribution and outbound transportation costs included in selling and administrative expenses were $82.0 million and $66.2 million for the first quarter of 2022 and the first quarter of 2021, respectively. |
Advertising Cost [Policy Text Block] | Advertising Expense Advertising costs, which are expensed as incurred, consist primarily of television and print advertising, digital, social media, internet and e-mail marketing and advertising, payment card-linked marketing and in-store point-of-purchase signage and presentations. Advertising expenses are included in selling and administrative expenses. Advertising expenses were $21.4 million and $21.8 million for the first quarter of 2022 and the first quarter of 2021, respectively. |
Comparability of Prior Year Financial Data, Policy [Policy Text Block] | Reclassifications We periodically assess, and make minor adjustments to, our product hierarchy, which can impact the roll-up of our merchandise categories. Our financial reporting process utilizes the most current product hierarchy in reporting net sales by merchandise category for all periods presented. Therefore, there may be minor reclassifications of net sales by merchandise category compared to previously reported amounts. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements There are currently no new accounting pronouncements with a future effective date that are of significance, or potential significance, to us. |
Shareholders' Equity Dividends
Shareholders' Equity Dividends Declared (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Equity [Abstract] | |
Dividends Declared [Table Text Block] | We declared and paid cash dividends per common share during the first quarter of 2022 as follows: Dividends Amount Declared Amount Paid 2022: (In thousands) (In thousands) First quarter $ 0.30 $ 8,981 $ 10,705 Total $ 0.30 $ 8,981 $ 10,705 |
Share-Based Plans (Tables)
Share-Based Plans (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | The following table summarizes the non-vested RSU activity for the first quarter of 2022: Number of Shares Weighted Average Grant-Date Fair Value Per Share Outstanding non-vested RSUs at January 29, 2022 909,287 $ 33.87 Granted 418,247 38.13 Vested (355,911) 29.29 Forfeited (23,271) 29.59 Outstanding non-vested RSUs at April 30, 2022 948,352 $ 37.52 |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | The following table summarizes the activity related to PSUs and TSR PSUs for the first quarter of 2022: Number of Units Weighted Average Grant-Date Fair Value Per Share Outstanding PSUs and TSR PSUs at January 29, 2022 240,110 $ 70.24 Granted 68,231 58.09 Vested (234,001) 70.24 Forfeited — — Outstanding PSUs and TSR PSUs at April 30, 2022 74,340 $ 59.09 |
Schedule of Share Based Compensation, Additional Information [Table Text Block] | The following activity occurred under our share-based plans during the respective periods shown: First Quarter (In thousands) 2022 2021 Total fair value of restricted stock vested $ 12,631 $ 26,901 Total fair value of performance shares vested $ 13,753 $ 37,168 |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share Based Compensation, Additional Information [Table Text Block] | We have begun or expect to begin recognizing expense related to PSUs and TSR PSUs as follows: Issue Year Measurement Basis Outstanding PSUs and TSR PSUs at April 30, 2022 Actual Grant Date Expected Valuation (Grant) Date Actual or Expected Expense Period 2019 ROIC/EPS 6,109 March 2021 Fiscal 2021 2021 ROIC/EPS 170,426 March 2023 Fiscal 2023 2022 Relative TSR 68,231 March 2022 Fiscal 2022 - 2024 2022 ROIC/EPS 272,951 March 2024 Fiscal 2024 Total 517,717 |
Business Segment Data (Tables)
Business Segment Data (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Category [Table Text Block] | The following table presents net sales data by merchandise category: First Quarter (In thousands) 2022 2021 Furniture $ 390,386 $ 481,431 Seasonal 234,171 303,918 Food 176,620 180,297 Soft Home 166,295 223,854 Consumables 155,310 162,388 Hard Home 129,284 152,198 Apparel, Electronics, & Other 122,648 121,466 Net sales $ 1,374,714 $ 1,625,552 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2022USD ($)store | May 01, 2021USD ($) | Jan. 28, 2023 | Jan. 29, 2022 | |
Components of Operating Cost and Expense [Abstract] | ||||
Number of Stores | store | 1,434 | |||
Number of States in which Entity Operates | 47 | |||
Fiscal Period Duration | 91 days | 91 days | 364 days | 364 days |
Distribution and Outbound Transportation Costs | $ 82 | $ 66.2 | ||
Advertising Expense | $ 21.4 | $ 21.8 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | $ 3,326 | $ 468 |
Cash paid for income taxes, excluding impact of refunds | 2,933 | 2,303 |
Gross proceeds from long-term debt | 648,200 | 0 |
Gross payments of long-term debt | 380,900 | 3,580 |
Cash paid for operating lease liabilities | 90,725 | 76,727 |
Non-cash activity: | ||
Share repurchases payable | 0 | 3,476 |
Assets acquired under finance leases | 1,377 | 0 |
Accrued property and equipment | 26,073 | 26,306 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 65,753 | $ 47,661 |
Debt (Details)
Debt (Details) - Credit Agreement [Member] - USD ($) $ in Millions | 1 Months Ended | |
Sep. 22, 2021 | Apr. 30, 2022 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility | $ 600 | |
Debt Instrument, Term | 5 years | |
Debt Issuance Costs, Gross | $ 1.2 | |
Line of Credit Facility, Swing Loan Sublimit | 50 | |
Line of Credit Facility, Letter of Credit Sublimit | 75 | |
Line of Credit Facility, Foreign Borrower Sublimit | 75 | |
Line of Credit Facility, Optional Currency Sublimit | 200 | |
Line of Credit Facility, Optional Incremental Term Loans and/or Borrowing Capacity | $ 300 | |
Line of Credit Facility, Amount Outstanding | $ 270.8 | |
Line of Credit Facility, Letters of Credit Outstanding | 5 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 324.2 |
Shareholders' Equity - Earnings
Shareholders' Equity - Earnings Per Share (Details) - shares | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Class of Stock [Line Items] | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 400,000 | 100,000 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchase Programs (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2022 | May 01, 2021 | Dec. 01, 2021 | |
Class of Stock [Line Items] | |||
Stock Repurchased During Period, Value | $ 10,639 | $ 104,491 | |
Common Stock [Member] | 2021 Repurchase Authorization [Member] | |||
Class of Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 250,000 | ||
Stock Repurchased During Period, Value | 0 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 159,400 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.30 | |
Amount declared (Dividends) | $ 8,981 | $ 11,206 |
Amount paid (Dividends) | $ (10,705) | $ (12,460) |
Share-Based Plans - General and
Share-Based Plans - General and Other than Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Apr. 30, 2022 | May 01, 2021 | Jan. 29, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Expense | $ 3,700 | $ 11,900 | |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 32,900 | ||
Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 years 4 months 24 days | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested, beginning balance | 909,287 | ||
Granted | 418,247 | ||
Vested | (355,911) | ||
Forfeited | (23,271) | ||
Nonvested, ending balance | 948,352 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Nonvested, Weighted Average Grant Date Fair Value | $ 37.52 | $ 33.87 | |
Grants in Period, Weighted Average Grant Date Fair Value | 38.13 | ||
Vested in Period, Weighted Average Grant Date Fair Value | 29.29 | ||
Forfeited in Period, Weighted Average Grant Date Fair Value | $ 29.59 | ||
Award Requisite Service Period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Total fair value of other than options vested | $ 12,631 | 26,901 | |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Expense | $ 100 | 8,600 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested, beginning balance | 240,110 | ||
Granted | 68,231 | ||
Vested | (234,001) | ||
Forfeited | 0 | ||
Nonvested, ending balance | 74,340 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Nonvested, Weighted Average Grant Date Fair Value | $ 59.09 | $ 70.24 | |
Grants in Period, Weighted Average Grant Date Fair Value | 58.09 | ||
Vested in Period, Weighted Average Grant Date Fair Value | 70.24 | ||
Forfeited in Period, Weighted Average Grant Date Fair Value | $ 0 | ||
Award Vesting Period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 517,717 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Total fair value of other than options vested | $ 13,753 | $ 37,168 | |
2019 PSU Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 6,109 | ||
2022 PSU Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 272,951 | ||
2021 PSU Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 170,426 | ||
2022 TSR PSU Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 68,231 | ||
2020 PRSU Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested, ending balance | 0 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | Apr. 30, 2022USD ($) |
Income Tax Contingency [Line Items] | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ (4) |
Business Segment Data (Details)
Business Segment Data (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,374,714 | $ 1,625,552 |
Furniture [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 390,386 | 481,431 |
Seasonal [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 234,171 | 303,918 |
Food [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 176,620 | 180,297 |
Soft Home [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 166,295 | 223,854 |
Consumables [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 155,310 | 162,388 |
Hard Home [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 129,284 | 152,198 |
Apparel, Electronics, & Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 122,648 | $ 121,466 |