Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 30, 2016 | Apr. 01, 2016 | Aug. 01, 2015 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 30, 2016 | ||
Entity Registrant Name | SHOE CARNIVAL INC | ||
Entity Central Index Key | 895,447 | ||
Current Fiscal Year End Date | --01-30 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Common Stock, Shares Outstanding | 0 | ||
Entity Public Float | $ 420,969,417 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 68,814 | $ 61,376 |
Accounts receivable | 2,131 | 2,928 |
Merchandise inventories | 292,878 | 287,877 |
Deferred income taxes | 1,061 | 957 |
Other | 5,193 | 5,991 |
Total Current Assets | 370,077 | 359,129 |
Property and equipment-net | 103,386 | 101,294 |
Deferred income taxes | 7,158 | 4,227 |
Other noncurrent assets | 472 | 366 |
Total Assets | 481,093 | 465,016 |
Current Liabilities: | ||
Accounts payable | 72,086 | 67,999 |
Accrued and other liabilities | 15,848 | 15,123 |
Total Current Liabilities | 87,934 | 83,122 |
Deferred lease incentives | 31,971 | 29,908 |
Accrued rent | 11,224 | 10,505 |
Deferred compensation | 9,612 | 9,901 |
Other | 550 | 382 |
Total Liabilities | 141,291 | 133,818 |
Shareholders' Equity: | ||
Common stock, $.01 par value, 50,000,000 shares authorized, 20,604,178 and 20,673,234 shares issued, respectively | 206 | 207 |
Additional paid-in capital | 66,805 | 67,389 |
Retained earnings | 294,308 | 270,686 |
Treasury stock, at cost, 955,612 and 380,890 shares, respectively | (21,517) | (7,084) |
Total Shareholders' Equity | 339,802 | 331,198 |
Total Liabilities and Shareholders' Equity | $ 481,093 | $ 465,016 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 30, 2016 | Jan. 31, 2015 |
Consolidated Balance Sheets [Abstract] | ||
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 20,604,178 | 20,673,234 |
Treasury shares, shares | 955,612 | 380,890 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Consolidated Statements of Income [Abstract] | |||
Net sales | $ 983,968 | $ 940,162 | $ 884,785 |
Cost of sales (including buying, distribution and occupancy costs) | 693,452 | 666,483 | 625,468 |
Gross profit | 290,516 | 273,679 | 259,317 |
Selling, general and administrative expenses | 243,883 | 231,826 | 215,650 |
Operating income | 46,633 | 41,853 | 43,667 |
Interest income | (39) | (14) | (12) |
Interest expense | 168 | 165 | 173 |
Income before income taxes | 46,504 | 41,702 | 43,506 |
Income tax expense | 17,737 | 16,175 | 16,635 |
Net income | $ 28,767 | $ 25,527 | $ 26,871 |
Net income per share: | |||
Basic | $ 1.45 | $ 1.27 | $ 1.33 |
Diluted | $ 1.45 | $ 1.27 | $ 1.32 |
Weighted average shares: | |||
Basic | 19,417 | 19,777 | 19,926 |
Diluted | 19,427 | 19,791 | 19,947 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Balance at Feb. 02, 2013 | $ 292,368 | $ 205 | $ 66,533 | $ 228,113 | $ (2,483) |
Balance, shares at Feb. 02, 2013 | 20,465 | (124) | |||
Stock option exercises | 69 | 54 | $ 15 | ||
Stock option exercises, shares | 6 | 1 | |||
Dividends paid | (4,914) | (4,914) | |||
Stock-based compensation income tax benefit | 199 | 199 | |||
Employee stock purchase plan purchases | 209 | 113 | $ 96 | ||
Employee stock purchase plan purchases, shares | 5 | 5 | |||
Restricted stock awards | 0 | (3,322) | $ 3,322 | ||
Restricted stock awards, shares | 6 | 164 | |||
Shares surrendered by employees to pay taxes on restricted stock | (953) | $ (953) | |||
Shares surrendered by employees to pay taxes on restricted stock, shares | (46) | ||||
Stock-based compensation expense | 3,023 | 3,023 | |||
Net income | 26,871 | 26,871 | |||
Balance at Feb. 01, 2014 | 316,872 | $ 205 | 66,600 | 250,070 | $ (3) |
Balance, shares at Feb. 01, 2014 | 20,482 | 0 | |||
Stock option exercises | 77 | 1 | $ 76 | ||
Stock option exercises, shares | 6 | 4 | |||
Dividends paid | (4,911) | (4,911) | |||
Stock-based compensation income tax benefit | 68 | 68 | |||
Employee stock purchase plan purchases | 210 | 37 | $ 173 | ||
Employee stock purchase plan purchases, shares | 2 | 9 | |||
Restricted stock awards | 0 | (260) | $ 258 | ||
Restricted stock awards, shares | 183 | 13 | |||
Shares surrendered by employees to pay taxes on restricted stock | (55) | $ (55) | |||
Shares surrendered by employees to pay taxes on restricted stock, shares | (2) | ||||
Purchase of common stock for treasury | (7,533) | $ (7,533) | |||
Purchase of common stock for treasury, shares | (405) | ||||
Stock-based compensation expense | 943 | 943 | |||
Net income | 25,527 | 25,527 | |||
Balance at Jan. 31, 2015 | 331,198 | $ 207 | 67,389 | 270,686 | $ (7,084) |
Balance, shares at Jan. 31, 2015 | 20,673 | (381) | |||
Stock option exercises | 155 | (125) | $ 280 | ||
Stock option exercises, shares | 15 | ||||
Dividends paid | (5,145) | (5,145) | |||
Stock-based compensation income tax benefit | 120 | 120 | |||
Employee stock purchase plan purchases | 236 | 20 | $ 216 | ||
Employee stock purchase plan purchases, shares | 10 | ||||
Restricted stock awards | 0 | $ (1) | (3,980) | $ 3,981 | |
Restricted stock awards, shares | (69) | 212 | |||
Shares surrendered by employees to pay taxes on restricted stock | (86) | $ (86) | |||
Shares surrendered by employees to pay taxes on restricted stock, shares | (3) | ||||
Purchase of common stock for treasury | (18,824) | $ (18,824) | |||
Purchase of common stock for treasury, shares | (809) | ||||
Stock-based compensation expense | 3,381 | 3,381 | |||
Net income | 28,767 | 28,767 | |||
Balance at Jan. 30, 2016 | $ 339,802 | $ 206 | $ 66,805 | $ 294,308 | $ (21,517) |
Balance, shares at Jan. 30, 2016 | 20,604 | (956) |
Consolidated Statements of Sha6
Consolidated Statements of Shareholders' Equity (Paranthetical) - $ / shares | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 30, 2016 | Feb. 01, 2014 | |
Consolidated Statements of Shareholders' Equity [Abstract] | |||
Paid dividends per share | $ 0.24 | $ 0.255 | $ 0.24 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Cash Flows From Operating Activities | |||
Net income | $ 28,767 | $ 25,527 | $ 26,871 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 23,078 | 20,063 | 17,428 |
Stock-based compensation | 3,702 | 1,064 | 3,295 |
Loss on retirement and impairment of assets, net | 1,770 | 1,104 | 1,180 |
Deferred income taxes | (3,035) | (550) | (721) |
Lease incentives | 6,604 | 8,307 | 8,112 |
Other | (5,171) | (1,070) | 405 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 588 | 1,409 | (2,135) |
Merchandise inventories | (5,001) | (3,076) | (12,519) |
Accounts payable and accrued liabilities | 6,530 | 6,838 | (4,158) |
Other | 723 | (1,962) | 862 |
Net cash provided by operating activities | 58,555 | 57,654 | 38,620 |
Cash Flows From Investing Activities | |||
Purchase of property and equipment | (27,901) | (33,543) | (30,966) |
Proceeds from sale of property and equipment | 0 | 836 | 0 |
Proceeds from note receivable | 250 | 250 | 200 |
Net cash used in investing activities | (27,651) | (32,457) | (30,766) |
Cash Flows From Financing Activities | |||
Proceeds from issuance of stock | 391 | 287 | 278 |
Dividends paid | (5,037) | (4,828) | (4,867) |
Excess tax benefits from stock-based compensation | 90 | 55 | 185 |
Purchase of common stock for treasury | (18,824) | (7,533) | 0 |
Shares surrendered by employees to pay taxes on restricted stock | (86) | (55) | (953) |
Net cash used in financing activities | (23,466) | (12,074) | (5,357) |
Net increase in cash and cash equivalents | 7,438 | 13,123 | 2,497 |
Cash and cash equivalents at beginning of year | 61,376 | 48,253 | 45,756 |
Cash and Cash Equivalents at End of Year | 68,814 | 61,376 | 48,253 |
Supplemental disclosures of cash flow information: | |||
Cash paid during year for interest | 168 | 166 | 179 |
Cash paid during year for income taxes | 20,020 | 17,618 | 16,892 |
Capital expenditures incurred but not yet paid | $ 677 | $ 1,596 | $ 2,034 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Jan. 30, 2016 | |
Organization and Description of Business [Abstract] | |
Organization and Description of Business | Note 1 – Organization and Description of Business Our consolidated financial statements include the accounts of Shoe Carnival, Inc. and its wholly-owned subsidiaries SCHC, Inc. and Shoe Carnival Ventures, LLC, and SCLC, Inc., a wholly-owned subsidiary of SCHC, Inc. (collectively referred to as “ we ” , “ our ”, “ us ”, or “Company” ). All intercompany accounts and transactions have been eliminated. Our primary activity is the sale of footwear and related products through our retail stores in 34 states within the continental United States and in Puerto Rico. W e also offer online shopping on our e-commerce site at www.shoecarnival.com . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Fiscal Year Our fiscal year is a 52/53 week year ending on the Saturday closest to January 31. Unless otherwise stated, references to years 2015 , 2014 , and 20 13 relate respectively to the fiscal years ended January 30 , 2016 , January 31 , 2015 , and February 1 , 2014 and consisted of 52 weeks. Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of our consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities as of the financial statement reporting date in addition to the reported amounts of certain revenues and expenses for the reporting period. The assumptions used by management in future estimates could change significantly due to changes in circumstances and actual results could differ from those estimates. Cash and Cash Equivalents We had cash and cash equivalents of $ 68.8 million at January 30 , 2016 and $ 61.4 million at January 31, 2015 . Credit and debit card receivables and receivables due from a third-party totaling $ 5.5 million and $ 7.0 million were included in cash equivalents at January 30 , 2016 and Jan uary 3 1 , 2015 , respectively. Credit and debit card receivables generally settle within three days; receivables due from a third-party generally settle within 15 days. We consider all short-term investments with an original maturity date of three months or less to be cash equivalents. As of Jan uary 30 , 2016 , and January 3 1 , 2015 , all invested cash was held in a money market account . While investments are not considered by management to be at significant risk, they could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, we have experienced no loss or lack of access to either invested cash or cash held in our bank accounts. Fair Value of Financial Instruments and Non-F inancial Assets Our financial assets as of Jan uary 30 , 2016 and January 3 1 , 2015 included cash and cash equivalents. The carrying value of cash and cash equivalents approximates fair value due to its short-term nature. We did not have any financial liabilities measured at fair value for these periods. Non-financial assets measured at fair value included on our consolidated balance sheet as of Jan uary 30 , 2016 and of January 31 , 2015 were those long-lived assets for which an impairment charge has been recorded . We did not have any non-financial liabilities measured at fair value for th ese period s . See Note 3 – “ Fair Value Measurements ” for further discussion. Merchandise Inventories and Cost of Sales Merchandise inventories are stated at the lower of cost or market (LCM) using the first-in, first-out (FIFO) method. For determining market value, we estimate the future demand and related sale price of merchandise contained in inventory as of the balance sheet date. The stated value of merchandise inventories contained on our consolidated balance sheets also includes freight, certain capitalized overhead costs and reserves. Factors considered in determining if our inventory is properly stated at LCM includes, among others, recent sale prices, the length of time merchandise has been held in inventory, quantities of various styles held in inventory, seasonality of merchandise, expected consideration to be received from our vendors and current and expected future sales trends. We reduce the value of our inventory to its estimated net realizable value where cost exceeds the estimated future selling price. Material changes in the factors previously noted could have a significant impact on the actual net realizable value of our inventory and our reported operating results. Cost of sales include s the cost of merchandise sold, buying, distribution, and occupancy costs, inbound freight expense, provision for inventory obsolescence , inventory shrink and credits and allowances from merchandise vendors . Co st of sales related to our e-commerce orders include charges paid to a third party service provider in addition to the freight expense for delivering merchandise to our customer. Property and Equipment-Net Property and equipment is stated at cost. Depreciation and amortization of property, equipment and leasehold improvements are taken on the straight-line method over the shorter of the estimated useful lives of the assets or the applicable lease terms. Lives used in computing depreciation and amortization range from two twenty that materially increase values, improve capacities or extend useful lives are capitalized. Upon sale or retirement, the costs and related accumulated depreciation or amortization are eliminated from the respective accounts and any resulting gain or loss is included in operations. We periodically evaluate our long-lived assets if events or circumstances indicate the carrying value may not be recoverable. The carrying value of long-lived assets is considered impaired when the carrying value of the assets exceeds the expected future cash flows to be derived from their use. Assets are grouped, and the evaluation performed, at the lowest level for which there are identifiable cash flows, which is generally at a store level. If the estimated future cash flows for a store are determined to be less than the carrying value of the store ' s assets , an impairment loss is reco rded for the difference between estimated fair value and carrying value. Assets subject to impairment are adjusted to estimated fair value and, if applicable, an impairment loss is recorded in selling, general and administrative expenses. We estimate the fair value of our long-lived assets using store specific cash flow assumptions discounted by a rate commensurate with the risk involved with such assets while incorporating marketplace assumptions . Our assumptions and estimates used in the evaluation of impairment, including current and future economic trends for stores, are subject to a high degree of judgment . I f actual operating results or market conditions differ from those anticipated, the carry ing value of certain of our assets may prove unrecoverable and we may incur additional impairment charges in the future . Our evaluations resulted in the recording of non-cash impairment charges of approximately $ 1.0 million in both fiscal years 2015 and 2014 and $ 947 ,000 in fiscal year 2013. Insurance Reserves We self-insure a significant portion of our workers ' compensation, general liability and employee health care costs and also maintain insurance in each area of risk, protect ing us from individual and aggregate losses over specified dollar values. We review the liability reserved for our self-insured portions on a quarterly basis, taking into consideration a number of factors, including historical claims experience, severity factors, statistical trends and, in certain instances, valuation assistance provided by independent third parties. Self-insurance reserves include estimates of claims filed, carried at their expected ultimate settlement value, and claims incurred but not yet reported. As of Jan uary 30 , 2016 and January 3 1 , 2015 , our self-insurance reserves totaled $3.3 million and $ 2. 9 million, respectively. We record self-insurance reserves as a component of selling, general and administrative expenses in our Consolidated Statements of Income. While we believe that the recorded amounts are adequate, there can be no assurance that changes to management ' s estimates will not occur due to limitations inherent in the estimating process . If actual results are not consistent with our estimates or assumptions, we may be exposed to losses or gains that could be material. Deferred Lease Incentives All cash incentives received from landlords are recorded as deferred income and amortized over the life of the lease on a straight-line basis as a reduction of rental expense. Accrued Rent We are party to various lease agreements, which require scheduled rent increases over the initial lease term. Rent expense for such leases is recognized on a straight-line basis over the initial lease term beginning the earlier of the start date of the lease or when we take possession of the property. The difference between rent based upon scheduled monthly payments and rent expense recognized on a straight-line basis is recorded as accrued rent. Revenue Recognition Revenue from sales of merchandise at our store locations is recognized at the time of sale. We record revenue from our e-commerce sales, including shipping and handling fees, based on an estimate d customer receipt date. Our sales are recorded exclusive of sales tax. In the regular course of business, we offer our customers sales incentives including coupons, discounts, and free merchandise. Sales are recorded net of such incentives and returns and allowances. If an incentive involves free merchandise, that merchandise is recorded as a zero sale and the cost is included in cost of sales. Gift card revenue is recognized at the time of redemption. Consideration Received From a Vendor Consideration is primarily received from merchandise vendors. Consideration is either recorded as a reduction of the price paid for the vendor ' s products and recorded as a reduction of our cost of sales, or if the consideration represents a reimbursement of a specific, incremental and identifiable cost, then it is recorded as an offset to the same financial statement line item. Consideration received from our vendors includes co-operative advertising/promotion, margin assistance, damage allowances and rebates earned for a specific level of purchases over a defined period. Consideration principally takes the form of credits that we can apply against trade amounts owed. Consideration received after the related merchandise has been sold is recorded as an offset to cost of sales in the period negotiations are finalized. For consideration received on merchandise still in inventory, the allowance is recorded as a reduction to the cost of on-hand inventory and recorded as a reduction of our cost of sales at the time of sale. Should the allowances received exceed the incremental cost then the excess consideration is recorded as a reduction to the cost of on-hand inventory and allocated to cost of sales in future periods utilizing an average inventory turn rate. Store Opening and Start-up Costs Non-capital expenditures, such as advertising, payroll and supplies, incurred prior to the opening of a new store are charged to expense in the period they are incurred. Advertising Costs Print, television, radio, outdoor and digital media costs are generally expensed when incurred. Internal production costs are expensed when incurred and external production costs are expensed in the period the advertisement first takes place. Advertising expenses included in selling, general and administrative expenses were $ 42.1 million, $ 41. 6 million and $ 3 7.6 million in fiscal years 20 15 , 20 14 and 20 13 , respectively. Stock-Based Compensation We recognize compensation expense for stock-based awards based on the fair value of the awards. Stock-based awards may include stock options, stock appreciation rights, and restricted stock awards under our stock-based compensation plans. Additionally, we recognize stock-based compensation expense for the discount on shares sold to employees through our employee stock purchase plan. This discount represents the difference between the market price and the employee purchase price. Stock-based compensation expense is included in selling, general and administrative expense. We apply an estimated forfeiture rate in calculating the stock-based compensation expense for the period. Forfeiture estimates are adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from previous estimates. Segment Information We have identified each retail store and our e-commerce store as individual operating segments. Our operating segments have been aggregated and are reported as one reportable segment based on the similar nature of products sold, merchandising and distribution processes involved, target customers and economic characteristics. Due to our multi-channel retailer strategy, we view our e-commerce sales as an extension of our physical stores. Income Taxes We compute income taxes using the asset and liability method, under which deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities. Deferred tax assets are reduced, if necessary, by a valuation allowance to the extent future realization of those tax benefits are uncertain. We account for uncertain tax positions in accordance with current authoritative guidance and report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We recognize interest expense and penalties, if any, related to uncertain tax positions in income tax expense. Net Income Per Share The following table sets forth the computation of basic and diluted earnings per share as shown on the face of the accompanying consolidated statements of income. Fiscal Year Ended January 30, 2016 January 31, 2015 February 1, 2014 (In thousands except per share data) Basic Earnings per Share: Net Income Shares Per Share Amount Net Income Shares Per Share Amount Net Income Shares Per Share Amount Net income $ 28,767 $ 25,527 $ 26,871 Amount allocated to participating securities (566 ) (461 ) (468 ) Net income available for basic common shares and basic earnings per share $ 28,201 19,417 $ 1.45 $ 25,066 19,777 $ 1.27 $ 26,403 19,926 $ 1.33 Diluted Earnings per Share: Net income $ 28,767 $ 25,527 $ 26,871 Amount allocated to participating securities (566 ) (461 ) (468 ) Adjustment for dilutive potential common shares 0 10 0 14 1 21 Net income available for diluted common shares and diluted earnings per share $ 28,201 19,427 $ 1.45 $ 25,066 19,791 $ 1.27 $ 26,404 19,947 $ 1.32 Our basic and diluted earnings per share are computed using the two-class method. The two-class method is an earnings allocation that determines net income per share for each class of common stock and participating securities according to their participation rights in dividends and undistributed earnings or losses . Non-vested r estricted stock awards that include non-forfeitable rights to dividends are considered participating securities. During periods of undistributed losses however, no effect is given to our participating securities since they do not share in the losses. Per share amounts are computed by dividing net income available to common shareholders by the weighted average shares outstanding during each period. No options to purchase shares of common stock were excluded in the computation of diluted shares for the periods presented. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance on the recognition of revenue for all contracts with customers designed to improve comparability and enhance financial statement disclosures. In April 2015, the FASB issued guidance simplifying the presentation of debt issuance costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This guidance is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015. In April 2015, the FASB issued guidance on accounting for fees paid in a cloud computing arrangement, which provides guidance to assist entities in determining whether a cloud computing arrangement contains a software license. The guidance states that if a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. In July 2015, the FASB issued guidance on simplifying the measurement of inventory, which is intended to narrow down the alternative methods available for valuing inventory. The new guidance does not apply to inventory currently measured using the last-in-first-out (“LIFO”) or the retail inventory valuation methods. Under the new guidance, inventory valued using other methods, including the first-in-first-out (“FIFO”) method, must be valued at the lower of cost or net realizable value. In November 2015, the FASB issued guidance which simplifies the classification of deferred taxes by requiring an entity to classify deferred tax liabilities and assets as noncurrent within a classified statement of financial position. In February 2016, the FASB issued guidance which will replace most existing lease accounting guidance. This update requires an entity to recognize leased assets and the rights and obligations created by those leased assets on the balance sheet and to disclose key information about the entity's leasing arrangements. This guidance is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2018. Early adoption is permitted. We are evaluating the impact of this guidance on our consolidated financial position, results of operations and cash flows |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 30, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 3 – Fair Value Measurements The accounting standards related to fair value measurements define fair value and provide a consistent framework for measuring fair value under the authoritative literature. Valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect market assumptions. This guidance only applies when other standards require or permit the fair value measurement of assets and liabilities. The guidance does not expand the use of fair value measurements. A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three broad levels. • Level 1 – Quoted prices in active markets for identical assets or liabilities; • Level 2 – Observable market-based inputs or unobservable inputs that are corroborated by market data; • Level 3 – Significant unobservable inputs that are not corroborated by market data. The following table presents assets that are measured at fair value on a recurring basis at January 30, 2016 and January 31 , 2015 . We have no material liabilities measured at fair value on a recurring or non-recurring basis. Fair Value Measurements (In thousands) Level 1 Level 2 Level 3 Total As of January 30, 2016: Cash equivalents – money market account $ 5,386 $ 0 $ 0 $ 5,386 As of January 31, 2015: Cash equivalents– money market account $ 5,279 $ 0 $ 0 $ 5,279 The fair values of cash, receivables, accounts payable, accrued expenses and other current liabilities approximate their carrying values because of their short-term nature. From time to time, we measure certain assets at fair value on a non-recurring basis, specifically long-lived assets evaluated for impairment. These are typically store specific assets, which are reviewed for impairment whenever events or changes in circumstances indicate that recoverability of their carrying value is questionable. If the expected future cash flows related to a store's assets are less than their carrying value, an impairment loss would be recognized for the difference between estimated fair value and carrying value and recorded in selling, general and administrative expenses. We estimate the fair value of store assets using an income-based approach considering the cash flows expected over the remaining lease term for each location. These projections are primarily based on management's estimates of store-level sales, gross margins, direct expenses, exercise of future lease renewal options and resulting cash flows and, by their nature, include judgments about how current initiatives will impact future performance. External factors, such as the local environment in which the store resides, including strip-mall traffic and competition, are evaluated in terms of their effect on sales trends. Changes in sales and operating income assumptions or unfavorable changes in external factors can significantly impact the estimated future cash flows. An increase or decrease in the projected cash flow can significantly decrease or increase the fair value of these assets, which would have an effect on the impairment recorded. During $ 1.0 $ 4.0 $ 1.0 $ 1.0 $ 4.3 $ 1.2 |
Property and Equipment-Net
Property and Equipment-Net | 12 Months Ended |
Jan. 30, 2016 | |
Property and Equipment-Net [Abstract] | |
Property and Equipment-Net | Note 4 – Property and Equipment-Net The following is a summary of property and equipment: (In thousands) January 30, 2016 January 31, 2015 Furniture, fixtures and equipment $ 149,341 $ 142,060 Leasehold improvements 104,220 98,421 Total 253,561 240,481 Less accumulated depreciation and amortization (150,175 ) (139,187 ) Property and equipment – net $ 103,386 $ 101,294 |
Accrued and Other Liabilities
Accrued and Other Liabilities | 12 Months Ended |
Jan. 30, 2016 | |
Accrued and Other Liabilities [Abstract] | |
Accrued and Other Liabilities | Note 5 – Accrued and Other Liabilities Accrued and other liabilities consisted of the following: (In thousands) January 30, 2016 January 31, 2015 Employee compensation and benefits $ 9,380 $ 8,220 Sales and use tax 1,902 2,479 Other 4,566 4,424 Total accrued and other liabilities $ 15,848 $ 15,123 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 30, 2016 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Note 6 – Long-Term Debt On April 10 , 2013 w e amended our current unsecured credit agreement (the “Credit Agreement”) to extend the expiration date by five years and renegotiate d certain terms and conditions. The Credit Agreement continues to provide for up to $ 50.0 The Credit Agreement contain s covenants which stipulate: (1) Total Shareholders' Equity, adjusted for the effect of any share repurchases, will not fall below that of the prior fiscal year-end; (2) the ratio of funded debt plus three times rent to EBITDA plus rent will not exceed 2.5 1.0 30 , and in no event may the total distributions in any fiscal year exceed 25 . Should a default condition be reported, the lenders may preclude additional borrowings and call all loans and accrued interest at their discretion. As of January 30 , 2016 , there were $ 1.5 million in letters of credit outstanding and $ 48.5 million available to us for borrowing under the Credit Agreement. The credit facility bears interest, at our option, at (1) the agent bank's prime rate as defined in the Credit Agreement plus 1 0.50 LIBOR plus 1.50 3.0 0. 25 % to 0.4 0 % per annum, depending on our achievement of certain performance criteria, on the unused portion of the bank group's commitment. The Credit Agreement expires April 1 0, 2018. |
Leases
Leases | 12 Months Ended |
Jan. 30, 2016 | |
Leases [Abstract] | |
Leases | Note 7 – Leases We lease all of our retail locations and certain equipment under operating leases expiring at various dates through fiscal 2027 . Various lease agreements require scheduled rent increases over the initial lease term. Rent expense for such leases is recognized on a straight-line basis over the initial lease term beginning the earlier of the start date of the lease or when we take possession of the property. The difference between rent based upon scheduled monthly payments and rent expense recognized on a straight-line basis is recorded as accrued rent. All incentives received from landlords are recorded as deferred income and amortized over the life of the lease on a straight-line basis as a reduction of rental expense. Certain leases provide for contingent rents that are not measurable at inception. These contingent rents are primarily based on a percentage of sales that are in excess of a predetermined level. These amounts are excluded from minimum rent and are included in the determination of total rent expense when it is probable that the expense has been incurred and the amount is reasonably estimable. Certain leases also contain escalation clauses for increases in operating costs and taxes. We assigned four store operating leases to separate third parties during fiscal 2015. Rental expense for our operating leases consisted of: (In thousands) 2015 2014 2013 Rentals for real property $ 64,244 $ 62,727 $ 58,140 Contingent rent 83 59 189 Equipment rentals 59 66 83 Total $ 64,386 $ 62,852 $ 58,412 Future minimum lease payments at Jan uary 30 , 2016 were as follows: (In thousands) Operating Leases 2016 $ 62,714 2017 64,739 2018 56,133 2019 51,273 2020 43,068 Thereafter to 2027 118,575 Total $ 396,502 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 30, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Note 8 – Income Taxes The provision for income taxes consisted of: (In thousands) 2015 2014 2013 Current: Federal $ 18,366 $ 14,575 $ 15,366 State 2,267 1,800 1,805 Puerto Rico 249 350 185 Total current 20,882 16,725 17,356 Deferred: Federal (3,000 ) (1,229 ) (139 ) State (145 ) (115 ) (138 ) Puerto Rico (318 ) (1,149 ) (444 ) Total deferred (3,463 ) (2,493 ) (721 ) Valuation allowance 318 1,943 0 Total provision $ 17,737 $ 16,175 $ 16,635 We realized a tax benefit of $ 120 , 00 0 , $ 69,000 and $ 199,000 in fiscal years 2015 , 2014 and 20 13 , respectively, as a result of the exercise of stock options and the vesting of restricted stock, which is recorded in shareholders ' equity. Reconciliation between the statutory federal income tax rate and the effective income tax rate is as follows: Fiscal years 2015 2014 2013 U.S. Federal statutory tax rate 35.0 % 35.0 % 35.0 % State and local income taxes, net of federal tax benefit 2.7 3.1 3.8 Puerto Rico 0.3 0.2 (0.6 ) Valuation allowance 0.7 4.7 0.0 Tax benefit of foreign losses (0.6 ) (4.3 ) 0.0 Other 0.0 0.1 0.0 Effective income tax rate 38.1 % 38.8 % 38.2 % We recorded $ 327 ,000 , $ 300 ,000 and $ 346, 000 in federal employment related tax credits in fiscal 2015 , 2014 and 20 13 , respectively. Deferred income taxes are the result of temporary differences in the recognition of revenue and expense for tax and financial reporting purposes. (In thousands) January 30, 2016 January 31, 2015 Deferred tax assets: Accrued rent $ 4,321 $ 4,045 Accrued compensation 6,911 5,896 Accrued employee benefits 532 523 Inventory 737 740 Self-insurance reserves 641 592 Lease incentives 12,522 12,073 Net operating loss carry forward 2,261 1,943 Other 411 367 Total deferred tax assets 28,336 26,179 Valuation allowance (2,261 ) (1,943 ) Total deferred tax assets – net of valuation allowance 26,075 24,236 Deferred tax liabilities: Depreciation 16,671 17,767 Capitalized costs 1,153 1,284 Other 32 1 Total deferred tax liabilities 17,856 19,052 Net deferred tax asset 8,219 5,184 Less current deferred income tax benefit (1,061 ) (957 ) Long-term deferred income taxes $ 7,158 $ 4,227 At the end of fiscal 2015, we estimated foreign net operating loss carry forwards of $ 5.9 2023 2025 $ 2.3 Our unrecognized tax liabilities relate to tax years encompassing our fiscal years 1999 2015 no es or interest in Other liabilities on the Consolidated Balance Sheets. 69,000 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 30, 2016 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Note 9 – Employee Benefit Plans Retirement Savings Plan s On February 24, 1994, our Board of Directors approved the Shoe Carnival Retirement Savings Plan (the “Domestic Savings Plan”). The Domestic Savings Plan is open to all employees working in the continental United States who have been employed for at least one year, are at least 21 1,000 The primary savings mechanism under the Domestic Savings Plan is a 401(k) plan under which an employee may contribute up to 20 annual earnings with us matching the first 4 50 Our contributions to the participants' accounts become fully vested when the participant reaches their third anniversary of employment with us. Contributions charged to expense were $ 656 ,000 , $ 639 ,000 , and $ 599,000 in fiscal years 2015 , 2014 , and 2013 , respectively. On March 19, 2012, our Board of Directors approved the Shoe Carnival Puerto Rico Savings Plan (the “Puerto Rico Savings Plan”). The Puerto Rico Savings Plan is open to all employees working in Puerto Rico who have been employed for at least one 21 1,000 This plan is similar to our Domestic Savings Plan whereby an employee may contribute up to 20 4 50 Contributions charged to expense were $ 10 ,000 , $ 12,000 $ 10,000 in fiscal year s 2015, 2014 and 201 3 , respectively . Stock Purchase Plan On May 11, 1995, our shareholders approved the Shoe Carnival, Inc. Employee Stock Purchase Plan (the “ Stock Purchase Plan ” ) as adopted by our Board of Directors on February 9, 1995. The Stock Purchase Plan reserves 45 0,000 shares of our common stock (subject to adjustment for any subsequent stock splits, stock dividends and certain other changes in the common stock) for issuance and sale to any employee who has been employed for more than a year at the beginning of the calendar year, and who is not a 10 common stock, at 85 5,000 Stock Purchase Plan , 10 ,000 , 11 , 0 00 and 10 , 0 00 shares of common stock were purchased by participants in the plan and proceeds to us for the sale of those shares were approximately $ 236 ,000 , $ 20 9 ,000 and $ 209 ,000 for fiscal years 2015 , 2 0 14 and 20 13 , respectively. At January 30 , 2016, there were 104,000 shares of unissued common stock reserved for future purchase under the Stock Purchase Plan . The following table summarizes information regarding stock-based compensation expense recognized for the Stock Purchase Plan: (In thousands) 2015 2014 2013 Stock-based compensation expense before the recognized income tax benefit (1) $ 41 $ 37 $ 37 Income tax benefit $ 16 $ 14 $ 14 (1) Amounts are representative of the 15% discount employees are provided for purchases under the Stock Purchase Plan. Deferred Compensation Plan In fisc $ 856,000 $ 1.1 $ 9.6 $ 9.9 |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Jan. 30, 2016 | |
Stock Based Compensation [Abstract] | |
Stock Based Compensation | Note 10 – Stock Based Compensation Compensation Plan Summaries The 2000 Stock Option and Incentive Plan (the “2000 Plan”) was approved by our Board of Directors and shareholders effective June 8, 2000. On June 14, 2012, the 200 0 Plan was amended to increase the number of shares reserved for issuance from 3,000,000 3,900,000 The 2000 Plan was also amended to revise the provision governing the payment of dividends on shares of restricted stock. No ten ten At January 30 , 2016 , there were 570 ,000 shares of unissued common stock reserved for future grants under the 2000 Plan. Stock options currently outstanding under the 2000 Plan typically were granted such that one-third of the shares underlying the stock options granted would vest and become fully exercisable on each of the first three 10 Restricted stock awards issued to employees under the 2000 Plan are classified as either performance-based or service-based. Performance-based restricted stock awards typically are granted such that they vest upon the achievement of specified levels of annual earnings per diluted share during a six Should the annual earnings per diluted share criteria not be met within the six Service-based restricted stock awards typically are granted under one of four vesting periods: (a) one-third of the shares would vest on each of the first three 5 subsequent to date of grant ; (c) the full award would vest at the end of a 2 or ( d ) for our Directors, all restricted stock awards are issued to vest on January 2 of the year following the year of the grant . N on-vested performance-based restricted stock granted before June 14, 2012 , and all s hares of non-vested service-based restricted stock provide non-forfeitable rights to all dividends declared by the Company . Dividends on non-vested performance-based restricted stock granted after June 14, 2012 , are subject to deferral until such times as the shares vest and are released . Plan Specific Activity and End of Period Balance Summaries Stock Options No no The following table summarizes the stock option transactions pursuant to the stock-based compensation plans: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding at January 31, 2015 21,999 $ 9.49 Granted 0 Forfeited or expired 0 Exercised (14,999 ) 10.36 Outstanding and exercisable at January 30, 2016 7,000 $ 7.63 1.97 $ 109 The following table summarizes information regarding options exercised: (In thousands) 2015 2014 2013 Total intrinsic value (1) $ 229 $ 146 $ 103 Total cash received $ 155 $ 77 $ 69 Associated excess income tax benefits recorded $ 57 $ 43 $ 28 (1) Defined as the difference between the market value at exercise and the grant price of stock options exercised. Restricted Stock Awards The following table summarizes the restricted share transactions pursuant to the 2000 Plan: Number of Shares Weighted- Average Grant Date Fair Value Restricted stock at January 31, 2015 705,576 $ 21.49 Granted 212,503 24.43 Vested (19,531 ) 24.49 Forfeited (69,056 ) 21.98 Restricted stock at January 30, 2016 829,492 $ 22.13 The total fair value at grant date of restricted stock awards that vested d uring fiscal 2015 , 2014 and 2013 was $ 478 ,000 , $ 351,000 and $ 2.6 million, respectively. The weighted-average grant date fair value of stock awards granted during fiscal 20 14 and fiscal 2013 w as $ 25.50 and $ 20.85 , respectively. The following table summarizes information regarding stock-based compensation expense recognized for restricted stock awards: (In thousands) 2015 2014 2013 Stock-based compensation expense before the recognized income tax benefit $ 3,340 $ 906 $ 2,985 Income tax benefit $ 1,274 $ 351 $ 1,141 The $ 90 6 ,000 of expense recognized in fiscal 2014 was comprised of stock-based compensation expense of $ 3.2 , partially offset by an expense reversal of $ 2.3 the third quarter reversal of the cumulative prior period expense for performance-based awards, which were deemed by management as not probable of vesting prior to their expiration. As of January 30 , 2016 , there was approximately $ 8.6 million of unrecognized compensation expense remaining related to both our performance-based and service-based restricted stock awards. The cost is expected to be recognized over a weighted average period of approximately 2.6 years. This incorporates our current assumptions with respect to the estimated requisite service period required to achieve the designated performance conditions for performance-based stock awards. Cash-Settled Stock Appreciation Rights (SARs) Our outstanding Cash-S ettled S tock A ppreciation R ights (SARs) were granted during the first quarter of fiscal 2015 to certain non-executive employees, such that one-third of the shares underlying the SARs will vest and become fully exercisable on each of the first three anniversaries of the date of the grant and were assigned a five , after which any unexercised SARs will expire . Each SAR entitle s the holder, upon exercise of their vested shares , to receive cash in an amount equal to the closing price of our stock on the date of exercise less the exercise price , with a maximum amount of gain defined . The SARs granted during the first quarter of fiscal 2015 were issued with a defined maximum gain of $ 10.00 24.26 In accordance with current authoritative guidance, cash-settled SARs are classified as Other liabilities on the Consolidated Balance Sheets. The following table summarizes the SARs activity: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Outstanding at January 31, 2015 40,375 $ 17.17 Granted 156,175 24.26 Forfeited (8,625 ) 24.26 Exercised (40,375 ) 17.17 Outstanding at January 30, 2016 147,550 $ 24.26 4.1 The fair value of liability awards are remeasured , using a trinomial lattice model, at each reporting period until the date of settlement. Increases or decreases in stock-based compensation expense is recognized over the vesting period, or immediately for vested awards. The fair value was estimated using a trinomial lattice model with the following assumptions: January 30, 2016 January 31, 2015 February 1, 2014 Risk free interest rate yield curve 0.22 1.33 0.01 1.18 0.01 1.49 % Expected dividend yield 1.0 % 1.0 % 1.0 % Expected volatility 36.05 % 37.82 % 45.20 % Maximum life 4.1 Years 2.0 2.99 Exercise multiple 1.34 1.31 1.38 Maximum payout $ $10.00 $ 6.67 $ 6.67 Employee exit rate 2.2 9.0 2.2 9.0 % 2.2 9.0 % The risk free interest rate was based on the U.S. Treasury yield curve in effect at the end of the reporting period. The expected dividend yield was based on our quarterly cash dividends in fiscal 2015 , with the assumption that quarterly dividends would continue at the current rate. Expected volatility was based on the historical volatility of our stock. The exercise multiple and employee exit rate are based on historical option data. The following table summarizes information regarding stock-based compensation expense recognized for SARs: (In thousands) 2015 2014 2013 Stock-based compensation expense before the recognized income tax benefit $ 321 $ 121 $ 272 Income tax benefit $ 123 $ 47 $ 104 As of January 30, 2016, approximately $ 288,000 1.2 |
Business Risk
Business Risk | 12 Months Ended |
Jan. 30, 2016 | |
Business Risk [Abstract] | |
Business Risk | Note 11 – Business Risk We 170 43 31 12 . |
Litigation Matters
Litigation Matters | 12 Months Ended |
Jan. 30, 2016 | |
Litigation Matters [Abstract] | |
Litigation Matters | Note 12 – Litigation Matters The From time to time, we are involved in certain legal proceedings in the ordinary course of conducting our business. While the outcome of any legal proceeding is uncertain, we do not currently expect that any such proceedings will have a material adverse effect on our consolidated balance sheets, statements of income, or cash flows. |
Quarterly Results
Quarterly Results | 12 Months Ended |
Jan. 30, 2016 | |
Quarterly Results [Abstract] | |
Quarterly Results | Note 1 3 – Quarterly Results (Unaudited) Quarterly results are determined in accordance with the accounting policies used for annual data and include certain items based upon estimates for the entire year. All fiscal quarters in 2015 and 2014 include results for 13 weeks . (In thousands, except per share data) Fiscal 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 252,767 $ 227,822 $ 269,713 $ 233,666 Gross profit 74,689 66,274 81,317 68,236 Operating income 17,030 7,877 15,173 6,553 Net income 10,396 4,817 9,386 4,168 Net income per share – Basic (1) $ 0.52 $ 0.24 $ 0.47 $ 0.21 Net income per share – Diluted (1) $ 0.52 $ 0.24 $ 0.47 $ 0.21 Fiscal 2014 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 235,770 $ 222,073 $ 254,687 $ 227,632 Gross profit 69,582 62,219 76,765 65,113 Operating income 15,209 4,264 17,792 4,588 Net income 9,151 2,584 10,817 2,975 Net income per share – Basic (1) $ 0.45 $ 0.13 $ 0.54 $ 0.15 Net income per share – Diluted (1) $ 0.45 $ 0.13 $ 0.54 $ 0.15 (1) Per share amounts are computed independently for each of the quarters presented. The sum of the quarters may not equal the total year due to the impact of changes in weighted shares outstanding and differing applications of earnings under the two-class method. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 1 4 – Subsequent Events On March 15, 2016, the Board of Directors approved the payment of a cash dividend to our shareholders in the first quarter of fiscal 2016. The quarterly cash dividend of $ 0.065 The declaration and payment of any future dividends are at the discretion of the Board of Directors and will depend on our results of operations, financial condition, business conditions and other factors deemed relevant by our Board of Directors. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Jan. 30, 2016 | |
VALUATION AND QUALIFYING ACCOUNTS [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | SHOE CARNIVAL, INC . SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (In thousands) Reserve for sales returns and allowances Balance at Beginning of Period Charged to Cost and Expenses Credited to Costs and Expenses Balance at End of Period Year ended February 1, 2014 $ 111 $ 97,399 $ 97,379 $ 131 Year ended January 31, 2015 $ 131 $ 104,511 $ 104,495 $ 147 Year ended January 30, 2016 $ 147 $ 105,258 $ 105,227 $ 178 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Jan. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year Our fiscal year is a 52/53 week year ending on the Saturday closest to January 31. Unless otherwise stated, references to years 2015 , 2014 , and 20 13 relate respectively to the fiscal years ended January 30 , 2016 , January 31 , 2015 , and February 1 , 2014 and consisted of 52 weeks. |
Use of Estimates in the Preparation of Consolidated Financial Statements | Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of our consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities as of the financial statement reporting date in addition to the reported amounts of certain revenues and expenses for the reporting period. The assumptions used by management in future estimates could change significantly due to changes in circumstances and actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents We had cash and cash equivalents of $ 68.8 million at January 30 , 2016 and $ 61.4 million at January 31, 2015 . Credit and debit card receivables and receivables due from a third-party totaling $ 5.5 million and $ 7.0 million were included in cash equivalents at January 30 , 2016 and Jan uary 3 1 , 2015 , respectively. Credit and debit card receivables generally settle within three days; receivables due from a third-party generally settle within 15 days. We consider all short-term investments with an original maturity date of three months or less to be cash equivalents. As of Jan uary 30 , 2016 , and January 3 1 , 2015 , all invested cash was held in a money market account . While investments are not considered by management to be at significant risk, they could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, we have experienced no loss or lack of access to either invested cash or cash held in our bank accounts. |
Fair Value of Financial Instruments and Non-Financial Assets | Fair Value of Financial Instruments and Non-F inancial Assets Our financial assets as of Jan uary 30 , 2016 and January 3 1 , 2015 included cash and cash equivalents. The carrying value of cash and cash equivalents approximates fair value due to its short-term nature. We did not have any financial liabilities measured at fair value for these periods. Non-financial assets measured at fair value included on our consolidated balance sheet as of Jan uary 30 , 2016 and of January 31 , 2015 were those long-lived assets for which an impairment charge has been recorded . We did not have any non-financial liabilities measured at fair value for th ese period s . See Note 3 – “ Fair Value Measurements ” for further discussion. |
Merchandise Inventories and Cost of Sales | Merchandise Inventories and Cost of Sales Merchandise inventories are stated at the lower of cost or market (LCM) using the first-in, first-out (FIFO) method. For determining market value, we estimate the future demand and related sale price of merchandise contained in inventory as of the balance sheet date. The stated value of merchandise inventories contained on our consolidated balance sheets also includes freight, certain capitalized overhead costs and reserves. Factors considered in determining if our inventory is properly stated at LCM includes, among others, recent sale prices, the length of time merchandise has been held in inventory, quantities of various styles held in inventory, seasonality of merchandise, expected consideration to be received from our vendors and current and expected future sales trends. We reduce the value of our inventory to its estimated net realizable value where cost exceeds the estimated future selling price. Material changes in the factors previously noted could have a significant impact on the actual net realizable value of our inventory and our reported operating results. Cost of sales include s the cost of merchandise sold, buying, distribution, and occupancy costs, inbound freight expense, provision for inventory obsolescence , inventory shrink and credits and allowances from merchandise vendors . Co st of sales related to our e-commerce orders include charges paid to a third party service provider in addition to the freight expense for delivering merchandise to our customer. |
Property and Equipment-Net | Property and Equipment-Net Property and equipment is stated at cost. Depreciation and amortization of property, equipment and leasehold improvements are taken on the straight-line method over the shorter of the estimated useful lives of the assets or the applicable lease terms. Lives used in computing depreciation and amortization range from two twenty that materially increase values, improve capacities or extend useful lives are capitalized. Upon sale or retirement, the costs and related accumulated depreciation or amortization are eliminated from the respective accounts and any resulting gain or loss is included in operations. We periodically evaluate our long-lived assets if events or circumstances indicate the carrying value may not be recoverable. The carrying value of long-lived assets is considered impaired when the carrying value of the assets exceeds the expected future cash flows to be derived from their use. Assets are grouped, and the evaluation performed, at the lowest level for which there are identifiable cash flows, which is generally at a store level. If the estimated future cash flows for a store are determined to be less than the carrying value of the store ' s assets , an impairment loss is reco rded for the difference between estimated fair value and carrying value. Assets subject to impairment are adjusted to estimated fair value and, if applicable, an impairment loss is recorded in selling, general and administrative expenses. We estimate the fair value of our long-lived assets using store specific cash flow assumptions discounted by a rate commensurate with the risk involved with such assets while incorporating marketplace assumptions . Our assumptions and estimates used in the evaluation of impairment, including current and future economic trends for stores, are subject to a high degree of judgment . I f actual operating results or market conditions differ from those anticipated, the carry ing value of certain of our assets may prove unrecoverable and we may incur additional impairment charges in the future . Our evaluations resulted in the recording of non-cash impairment charges of approximately $ 1.0 million in both fiscal years 2015 and 2014 and $ 947 ,000 in fiscal year 2013. |
Insurance Reserves | Insurance Reserves We self-insure a significant portion of our workers ' compensation, general liability and employee health care costs and also maintain insurance in each area of risk, protect ing us from individual and aggregate losses over specified dollar values. We review the liability reserved for our self-insured portions on a quarterly basis, taking into consideration a number of factors, including historical claims experience, severity factors, statistical trends and, in certain instances, valuation assistance provided by independent third parties. Self-insurance reserves include estimates of claims filed, carried at their expected ultimate settlement value, and claims incurred but not yet reported. As of Jan uary 30 , 2016 and January 3 1 , 2015 , our self-insurance reserves totaled $3.3 million and $ 2. 9 million, respectively. We record self-insurance reserves as a component of selling, general and administrative expenses in our Consolidated Statements of Income. While we believe that the recorded amounts are adequate, there can be no assurance that changes to management ' s estimates will not occur due to limitations inherent in the estimating process . If actual results are not consistent with our estimates or assumptions, we may be exposed to losses or gains that could be material. |
Deferred Lease Incentives | Deferred Lease Incentives All cash incentives received from landlords are recorded as deferred income and amortized over the life of the lease on a straight-line basis as a reduction of rental expense. |
Accrued Rent | Accrued Rent We are party to various lease agreements, which require scheduled rent increases over the initial lease term. Rent expense for such leases is recognized on a straight-line basis over the initial lease term beginning the earlier of the start date of the lease or when we take possession of the property. The difference between rent based upon scheduled monthly payments and rent expense recognized on a straight-line basis is recorded as accrued rent. |
Revenue Recognition | Revenue Recognition Revenue from sales of merchandise at our store locations is recognized at the time of sale. We record revenue from our e-commerce sales, including shipping and handling fees, based on an estimate d customer receipt date. Our sales are recorded exclusive of sales tax. In the regular course of business, we offer our customers sales incentives including coupons, discounts, and free merchandise. Sales are recorded net of such incentives and returns and allowances. If an incentive involves free merchandise, that merchandise is recorded as a zero sale and the cost is included in cost of sales. Gift card revenue is recognized at the time of redemption. |
Consideration Received From a Vendor | Consideration Received From a Vendor Consideration is primarily received from merchandise vendors. Consideration is either recorded as a reduction of the price paid for the vendor ' s products and recorded as a reduction of our cost of sales, or if the consideration represents a reimbursement of a specific, incremental and identifiable cost, then it is recorded as an offset to the same financial statement line item. Consideration received from our vendors includes co-operative advertising/promotion, margin assistance, damage allowances and rebates earned for a specific level of purchases over a defined period. Consideration principally takes the form of credits that we can apply against trade amounts owed. Consideration received after the related merchandise has been sold is recorded as an offset to cost of sales in the period negotiations are finalized. For consideration received on merchandise still in inventory, the allowance is recorded as a reduction to the cost of on-hand inventory and recorded as a reduction of our cost of sales at the time of sale. Should the allowances received exceed the incremental cost then the excess consideration is recorded as a reduction to the cost of on-hand inventory and allocated to cost of sales in future periods utilizing an average inventory turn rate. |
Store Opening and Start-up Costs | Store Opening and Start-up Costs Non-capital expenditures, such as advertising, payroll and supplies, incurred prior to the opening of a new store are charged to expense in the period they are incurred. |
Advertising Costs | Advertising Costs Print, television, radio, outdoor and digital media costs are generally expensed when incurred. Internal production costs are expensed when incurred and external production costs are expensed in the period the advertisement first takes place. Advertising expenses included in selling, general and administrative expenses were $ 42.1 million, $ 41. 6 million and $ 3 7.6 million in fiscal years 20 15 , 20 14 and 20 13 , respectively. |
Stock-Based Compensation | Stock-Based Compensation We recognize compensation expense for stock-based awards based on the fair value of the awards. Stock-based awards may include stock options, stock appreciation rights, and restricted stock awards under our stock-based compensation plans. Additionally, we recognize stock-based compensation expense for the discount on shares sold to employees through our employee stock purchase plan. This discount represents the difference between the market price and the employee purchase price. Stock-based compensation expense is included in selling, general and administrative expense. We apply an estimated forfeiture rate in calculating the stock-based compensation expense for the period. Forfeiture estimates are adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from previous estimates. |
Segment Information | Segment Information We have identified each retail store and our e-commerce store as individual operating segments. Our operating segments have been aggregated and are reported as one reportable segment based on the similar nature of products sold, merchandising and distribution processes involved, target customers and economic characteristics. Due to our multi-channel retailer strategy, we view our e-commerce sales as an extension of our physical stores. |
Income Taxes | Income Taxes We compute income taxes using the asset and liability method, under which deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities. Deferred tax assets are reduced, if necessary, by a valuation allowance to the extent future realization of those tax benefits are uncertain. We account for uncertain tax positions in accordance with current authoritative guidance and report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We recognize interest expense and penalties, if any, related to uncertain tax positions in income tax expense. |
Net Income Per Share | Net Income Per Share The following table sets forth the computation of basic and diluted earnings per share as shown on the face of the accompanying consolidated statements of income. Fiscal Year Ended January 30, 2016 January 31, 2015 February 1, 2014 (In thousands except per share data) Basic Earnings per Share: Net Income Shares Per Share Amount Net Income Shares Per Share Amount Net Income Shares Per Share Amount Net income $ 28,767 $ 25,527 $ 26,871 Amount allocated to participating securities (566 ) (461 ) (468 ) Net income available for basic common shares and basic earnings per share $ 28,201 19,417 $ 1.45 $ 25,066 19,777 $ 1.27 $ 26,403 19,926 $ 1.33 Diluted Earnings per Share: Net income $ 28,767 $ 25,527 $ 26,871 Amount allocated to participating securities (566 ) (461 ) (468 ) Adjustment for dilutive potential common shares 0 10 0 14 1 21 Net income available for diluted common shares and diluted earnings per share $ 28,201 19,427 $ 1.45 $ 25,066 19,791 $ 1.27 $ 26,404 19,947 $ 1.32 Our basic and diluted earnings per share are computed using the two-class method. The two-class method is an earnings allocation that determines net income per share for each class of common stock and participating securities according to their participation rights in dividends and undistributed earnings or losses . Non-vested r estricted stock awards that include non-forfeitable rights to dividends are considered participating securities. During periods of undistributed losses however, no effect is given to our participating securities since they do not share in the losses. Per share amounts are computed by dividing net income available to common shareholders by the weighted average shares outstanding during each period. No options to purchase shares of common stock were excluded in the computation of diluted shares for the periods presented. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance on the recognition of revenue for all contracts with customers designed to improve comparability and enhance financial statement disclosures. In April 2015, the FASB issued guidance simplifying the presentation of debt issuance costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This guidance is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015. In April 2015, the FASB issued guidance on accounting for fees paid in a cloud computing arrangement, which provides guidance to assist entities in determining whether a cloud computing arrangement contains a software license. The guidance states that if a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. In July 2015, the FASB issued guidance on simplifying the measurement of inventory, which is intended to narrow down the alternative methods available for valuing inventory. The new guidance does not apply to inventory currently measured using the last-in-first-out (“LIFO”) or the retail inventory valuation methods. Under the new guidance, inventory valued using other methods, including the first-in-first-out (“FIFO”) method, must be valued at the lower of cost or net realizable value. In November 2015, the FASB issued guidance which simplifies the classification of deferred taxes by requiring an entity to classify deferred tax liabilities and assets as noncurrent within a classified statement of financial position. In February 2016, the FASB issued guidance which will replace most existing lease accounting guidance. This update requires an entity to recognize leased assets and the rights and obligations created by those leased assets on the balance sheet and to disclose key information about the entity's leasing arrangements. This guidance is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2018. Early adoption is permitted. We are evaluating the impact of this guidance on our consolidated financial position, results of operations and cash flows |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per share as shown on the face of the accompanying consolidated statements of income. Fiscal Year Ended January 30, 2016 January 31, 2015 February 1, 2014 (In thousands except per share data) Basic Earnings per Share: Net Income Shares Per Share Amount Net Income Shares Per Share Amount Net Income Shares Per Share Amount Net income $ 28,767 $ 25,527 $ 26,871 Amount allocated to participating securities (566 ) (461 ) (468 ) Net income available for basic common shares and basic earnings per share $ 28,201 19,417 $ 1.45 $ 25,066 19,777 $ 1.27 $ 26,403 19,926 $ 1.33 Diluted Earnings per Share: Net income $ 28,767 $ 25,527 $ 26,871 Amount allocated to participating securities (566 ) (461 ) (468 ) Adjustment for dilutive potential common shares 0 10 0 14 1 21 Net income available for diluted common shares and diluted earnings per share $ 28,201 19,427 $ 1.45 $ 25,066 19,791 $ 1.27 $ 26,404 19,947 $ 1.32 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Fair Value Measurements [Abstract] | |
Schedule of Assets Measured at Fair Value on a Recurring Basis | The following table presents assets that are measured at fair value on a recurring basis at January 30, 2016 and January 31 , 2015 . We have no material liabilities measured at fair value on a recurring or non-recurring basis. Fair Value Measurements (In thousands) Level 1 Level 2 Level 3 Total As of January 30, 2016: Cash equivalents – money market account $ 5,386 $ 0 $ 0 $ 5,386 As of January 31, 2015: Cash equivalents– money market account $ 5,279 $ 0 $ 0 $ 5,279 |
Property and Equipment-Net (Tab
Property and Equipment-Net (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Property and Equipment-Net [Abstract] | |
Schedule of Property and Equipment | The following is a summary of property and equipment: (In thousands) January 30, 2016 January 31, 2015 Furniture, fixtures and equipment $ 149,341 $ 142,060 Leasehold improvements 104,220 98,421 Total 253,561 240,481 Less accumulated depreciation and amortization (150,175 ) (139,187 ) Property and equipment – net $ 103,386 $ 101,294 |
Accrued and Other Liabilities (
Accrued and Other Liabilities (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Accrued and Other Liabilities [Abstract] | |
Schedule of Accrued and Other Liabilities | (In thousands) January 30, 2016 January 31, 2015 Employee compensation and benefits $ 9,380 $ 8,220 Sales and use tax 1,902 2,479 Other 4,566 4,424 Total accrued and other liabilities $ 15,848 $ 15,123 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Leases [Abstract] | |
Schedule of Rental Expense Under Operating Leases | Rental expense for our operating leases consisted of: (In thousands) 2015 2014 2013 Rentals for real property $ 64,244 $ 62,727 $ 58,140 Contingent rent 83 59 189 Equipment rentals 59 66 83 Total $ 64,386 $ 62,852 $ 58,412 |
Schedule of Future Minimum Payments Under Operating Leases | Future minimum lease payments at Jan uary 30 , 2016 were as follows: (In thousands) Operating Leases 2016 $ 62,714 2017 64,739 2018 56,133 2019 51,273 2020 43,068 Thereafter to 2027 118,575 Total $ 396,502 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Income Taxes [Abstract] | |
Schedule of Income Tax Provision | The provision for income taxes consisted of: (In thousands) 2015 2014 2013 Current: Federal $ 18,366 $ 14,575 $ 15,366 State 2,267 1,800 1,805 Puerto Rico 249 350 185 Total current 20,882 16,725 17,356 Deferred: Federal (3,000 ) (1,229 ) (139 ) State (145 ) (115 ) (138 ) Puerto Rico (318 ) (1,149 ) (444 ) Total deferred (3,463 ) (2,493 ) (721 ) Valuation allowance 318 1,943 0 Total provision $ 17,737 $ 16,175 $ 16,635 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation between the statutory federal income tax rate and the effective income tax rate is as follows: Fiscal years 2015 2014 2013 U.S. Federal statutory tax rate 35.0 % 35.0 % 35.0 % State and local income taxes, net of federal tax benefit 2.7 3.1 3.8 Puerto Rico 0.3 0.2 (0.6 ) Valuation allowance 0.7 4.7 0.0 Tax benefit of foreign losses (0.6 ) (4.3 ) 0.0 Other 0.0 0.1 0.0 Effective income tax rate 38.1 % 38.8 % 38.2 % |
Schedule of Deferred Tax Asset/Liability | (In thousands) January 30, 2016 January 31, 2015 Deferred tax assets: Accrued rent $ 4,321 $ 4,045 Accrued compensation 6,911 5,896 Accrued employee benefits 532 523 Inventory 737 740 Self-insurance reserves 641 592 Lease incentives 12,522 12,073 Net operating loss carry forward 2,261 1,943 Other 411 367 Total deferred tax assets 28,336 26,179 Valuation allowance (2,261 ) (1,943 ) Total deferred tax assets – net of valuation allowance 26,075 24,236 Deferred tax liabilities: Depreciation 16,671 17,767 Capitalized costs 1,153 1,284 Other 32 1 Total deferred tax liabilities 17,856 19,052 Net deferred tax asset 8,219 5,184 Less current deferred income tax benefit (1,061 ) (957 ) Long-term deferred income taxes $ 7,158 $ 4,227 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Employee Benefit Plans [Abstract] | |
Schedule of Stock Based Compensation Expense for Stock Purchase Plan | The following table summarizes information regarding stock-based compensation expense recognized for the Stock Purchase Plan: (In thousands) 2015 2014 2013 Stock-based compensation expense before the recognized income tax benefit (1) $ 41 $ 37 $ 37 Income tax benefit $ 16 $ 14 $ 14 (1) Amounts are representative of the 15% discount employees are provided for purchases under the Stock Purchase Plan. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Option Activity | The following table summarizes the stock option transactions pursuant to the stock-based compensation plans: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding at January 31, 2015 21,999 $ 9.49 Granted 0 Forfeited or expired 0 Exercised (14,999 ) 10.36 Outstanding and exercisable at January 30, 2016 7,000 $ 7.63 1.97 $ 109 |
Schedule of Stock Options Exercised | The following table summarizes information regarding options exercised: (In thousands) 2015 2014 2013 Total intrinsic value (1) $ 229 $ 146 $ 103 Total cash received $ 155 $ 77 $ 69 Associated excess income tax benefits recorded $ 57 $ 43 $ 28 (1) Defined as the difference between the market value at exercise and the grant price of stock options exercised. |
Summary of Restricted Stock Awards Transactions | The following table summarizes the restricted share transactions pursuant to the 2000 Plan: Number of Shares Weighted- Average Grant Date Fair Value Restricted stock at January 31, 2015 705,576 $ 21.49 Granted 212,503 24.43 Vested (19,531 ) 24.49 Forfeited (69,056 ) 21.98 Restricted stock at January 30, 2016 829,492 $ 22.13 |
Schedule of SARs Activity | The following table summarizes the SARs activity: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Outstanding at January 31, 2015 40,375 $ 17.17 Granted 156,175 24.26 Forfeited (8,625 ) 24.26 Exercised (40,375 ) 17.17 Outstanding at January 30, 2016 147,550 $ 24.26 4.1 |
Schedule of SARs Assumptions | The fair value was estimated using a trinomial lattice model with the following assumptions: January 30, 2016 January 31, 2015 February 1, 2014 Risk free interest rate yield curve 0.22 1.33 0.01 1.18 0.01 1.49 % Expected dividend yield 1.0 % 1.0 % 1.0 % Expected volatility 36.05 % 37.82 % 45.20 % Maximum life 4.1 Years 2.0 2.99 Exercise multiple 1.34 1.31 1.38 Maximum payout $ $10.00 $ 6.67 $ 6.67 Employee exit rate 2.2 9.0 2.2 9.0 % 2.2 9.0 % |
Restricted Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock Compensation Expense | The following table summarizes information regarding stock-based compensation expense recognized for restricted stock awards: (In thousands) 2015 2014 2013 Stock-based compensation expense before the recognized income tax benefit $ 3,340 $ 906 $ 2,985 Income tax benefit $ 1,274 $ 351 $ 1,141 |
SARs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock Compensation Expense | The following table summarizes information regarding stock-based compensation expense recognized for SARs: (In thousands) 2015 2014 2013 Stock-based compensation expense before the recognized income tax benefit $ 321 $ 121 $ 272 Income tax benefit $ 123 $ 47 $ 104 |
Quarterly Results (Tables)
Quarterly Results (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Quarterly Results [Abstract] | |
Schedule of Quarterly Results | (In thousands, except per share data) Fiscal 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 252,767 $ 227,822 $ 269,713 $ 233,666 Gross profit 74,689 66,274 81,317 68,236 Operating income 17,030 7,877 15,173 6,553 Net income 10,396 4,817 9,386 4,168 Net income per share – Basic (1) $ 0.52 $ 0.24 $ 0.47 $ 0.21 Net income per share – Diluted (1) $ 0.52 $ 0.24 $ 0.47 $ 0.21 Fiscal 2014 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 235,770 $ 222,073 $ 254,687 $ 227,632 Gross profit 69,582 62,219 76,765 65,113 Operating income 15,209 4,264 17,792 4,588 Net income 9,151 2,584 10,817 2,975 Net income per share – Basic (1) $ 0.45 $ 0.13 $ 0.54 $ 0.15 Net income per share – Diluted (1) $ 0.45 $ 0.13 $ 0.54 $ 0.15 (1) Per share amounts are computed independently for each of the quarters presented. The sum of the quarters may not equal the total year due to the impact of changes in weighted shares outstanding and differing applications of earnings under the two-class method. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Summary of Significant Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 68,814,000 | $ 61,376,000 | $ 48,253,000 | $ 45,756,000 |
Credit and debit card receivables | 5,500,000 | 7,000,000 | ||
Impairment charges | 1,000,000 | 1,000,000 | 947,000 | |
Self-insurance reserves | 3,300,000 | 2,900,000 | ||
Advertising expenses | $ 42,100,000 | $ 41,600,000 | $ 37,600,000 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Schedule of Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |||||||||
Basic Earnings per Share: | |||||||||||||||||||
Net income | $ 4,168 | $ 9,386 | $ 4,817 | $ 10,396 | $ 2,975 | $ 10,817 | $ 2,584 | $ 9,151 | $ 28,767 | $ 25,527 | $ 26,871 | ||||||||
Amount allocated to participating securities | (566) | (461) | (468) | ||||||||||||||||
Net income available for basic common shares and basic earnings per share | $ 28,201 | $ 25,066 | $ 26,403 | ||||||||||||||||
Net income available for basic common shares and basic earnings per share, Shares | 19,417 | 19,777 | 19,926 | ||||||||||||||||
Net income per share - Basic | $ 0.21 | [1] | $ 0.47 | [1] | $ 0.24 | [1] | $ 0.52 | [1] | $ 0.15 | [1] | $ 0.54 | [1] | $ 0.13 | [1] | $ 0.45 | [1] | $ 1.45 | $ 1.27 | $ 1.33 |
Diluted Earnings per Share: | |||||||||||||||||||
Net income | $ 4,168 | $ 9,386 | $ 4,817 | $ 10,396 | $ 2,975 | $ 10,817 | $ 2,584 | $ 9,151 | $ 28,767 | $ 25,527 | $ 26,871 | ||||||||
Amount allocated to participating securities | (566) | (461) | (468) | ||||||||||||||||
Adjustment for dilutive potential common shares | $ 0 | $ 0 | $ 1 | ||||||||||||||||
Adjustment for dilutive potential common shares, Shares | 10 | 14 | 21 | ||||||||||||||||
Net income available for diluted common shares and diluted earnings per share | $ 28,201 | $ 25,066 | $ 26,404 | ||||||||||||||||
Net income available for diluted common shares and diluted earnings per share, Shares | 19,427 | 19,791 | 19,947 | ||||||||||||||||
Net income per share - Diluted | $ 0.21 | [1] | $ 0.47 | [1] | $ 0.24 | [1] | $ 0.52 | [1] | $ 0.15 | [1] | $ 0.54 | [1] | $ 0.13 | [1] | $ 0.45 | [1] | $ 1.45 | $ 1.27 | $ 1.32 |
[1] | Per share amounts are computed independently for each of the quarters presented. The sum of the quarters may not equal the total year due to the impact of changes in weighted shares outstanding and differing applications of earnings under the two-class method. |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Fair Value Measurements [Abstract] | ||
Long-lived assets, gross carrying amount | $ 4 | $ 4.3 |
Long-lived assets, impairment charges | 1 | 1 |
Remaining unamortized basis | $ 1 | $ 1.2 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Assets Measure at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents - money market account | $ 5,386 | $ 5,279 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents - money market account | 5,386 | 5,279 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents - money market account | 0 | 0 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents - money market account | $ 0 | $ 0 |
Property and Equipment-Net (Det
Property and Equipment-Net (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 253,561 | $ 240,481 |
Less accumulated depreciation and amortization | (150,175) | (139,187) |
Property and equipment - net | 103,386 | 101,294 |
Furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 149,341 | 142,060 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 104,220 | $ 98,421 |
Accrued and Other Liabilities38
Accrued and Other Liabilities (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Accrued and Other Liabilities [Abstract] | ||
Employee compensation and benefits | $ 9,380 | $ 8,220 |
Sales and use tax | 1,902 | 2,479 |
Other | 4,566 | 4,424 |
Total accrued and other liabilities | $ 15,848 | $ 15,123 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2016 | Apr. 10, 2013 | |
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing amount | $ 50 | |
Percentage of net income which cash dividends cannot exceed | 30.00% | |
Percentage of net worth which cash dividends cannot exceed | 25.00% | |
Outstanding letters of credit | $ 1.5 | |
Line of credit, available borrowing amount | $ 48.5 | |
Line of credit facility, expiration date | Apr. 10, 2018 |
Leases (Schedule of Operating L
Leases (Schedule of Operating Lease Rental Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Leases [Abstract] | |||
Rentals for real property | $ 64,244 | $ 62,727 | $ 58,140 |
Contingent rent | 83 | 59 | 189 |
Equipment rentals | 59 | 66 | 83 |
Total rent expense | $ 64,386 | $ 62,852 | $ 58,412 |
Leases (Schedule of Operating41
Leases (Schedule of Operating Lease Payments) (Details) $ in Thousands | Jan. 30, 2016USD ($) |
Leases [Abstract] | |
2,016 | $ 62,714 |
2,017 | 64,739 |
2,018 | 56,133 |
2,019 | 51,273 |
2,020 | 43,068 |
Thereafter to 2027 | 118,575 |
Total | $ 396,502 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Income Taxes [Abstract] | |||
Tax benefit from options exercised and restricted stock vesting | $ 120,000 | $ 68,000 | $ 199,000 |
Federal employment related tax credits | 327,000 | 300,000 | 346,000 |
Valuation Allowance | 2,261,000 | $ 1,943,000 | |
Decreases in tax positions related to prior period | $ 69,000 | ||
Foreign [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 5,900,000 | ||
Foreign [Member] | Minimum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards expiration dates | Jan. 1, 2023 | ||
Foreign [Member] | Maximum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards expiration dates | Dec. 31, 2025 |
Income Taxes (Schedule of the P
Income Taxes (Schedule of the Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Current: | |||
Federal | $ 18,366 | $ 14,575 | $ 15,366 |
State | 2,267 | 1,800 | 1,805 |
Puerto Rico | 249 | 350 | 185 |
Total current | 20,882 | 16,725 | 17,356 |
Deferred: | |||
Federal | (3,000) | (1,229) | (139) |
State | (145) | (115) | (138) |
Puerto Rico | (318) | (1,149) | (444) |
Total deferred | (3,463) | (2,493) | (721) |
Valuation allowance | 318 | 1,943 | 0 |
Total provision | $ 17,737 | $ 16,175 | $ 16,635 |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Statutory Income Tax Rate) (Details) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Income Taxes [Abstract] | |||
U.S. Federal statutory tax rate | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of federal tax benefit | 2.70% | 3.10% | 3.80% |
Puerto Rico | 0.30% | 0.20% | (0.60%) |
Valuation allowance | 0.70% | 4.70% | 0.00% |
Tax benefit of foreign losses | (0.60%) | (4.30%) | 0.00% |
Other | 0.00% | 0.10% | 0.00% |
Effective income tax rate | 38.10% | 38.80% | 38.20% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Income Tax Assets/Liabilities) (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Deferred tax assets: | ||
Accrued rent | $ 4,321 | $ 4,045 |
Accrued compensation | 6,911 | 5,896 |
Accrued employee benefits | 532 | 523 |
Inventory | 737 | 740 |
Self-insurance reserves | 641 | 592 |
Lease incentives | 12,522 | 12,073 |
Net operating loss carry forward | 2,261 | 1,943 |
Other | 411 | 367 |
Total deferred tax assets | 28,336 | 26,179 |
Valuation allowance | (2,261) | (1,943) |
Total deferred tax assets - net of valuation allowance | 26,075 | 24,236 |
Deferred tax liabilities: | ||
Depreciation | 16,671 | 17,767 |
Capitalized costs | 1,153 | 1,284 |
Other | 32 | 1 |
Total deferred tax liabilities | 17,856 | 19,052 |
Net deferred tax asset | 8,219 | 5,184 |
Less current deferred income tax benefit | (1,061) | (957) |
Long-term deferred income taxes | $ 7,158 | $ 4,227 |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Position) (Details) | 12 Months Ended |
Feb. 01, 2014USD ($) | |
Income Taxes [Abstract] | |
Decreases - tax positions in prior period | $ (69,000) |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2012 | Jan. 31, 2015 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Deferred Compensation Plan: | |||||
Compensation (income) expense | $ (6,000) | $ 856,000 | $ 1,100,000 | ||
Total deferred compensation liability | $ 9,900,000 | $ 9,600,000 | 9,900,000 | ||
Domestic Plan [Member] | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Requisite service period for participation | 1 year | ||||
Requisite participant age | 21 years | ||||
Requisite work hours for participation | 1000 hours | ||||
Percentage of earnings which may be contributed | 20.00% | ||||
Employee contribution percentage | 4.00% | ||||
Eligible earnings which may be contributed, and matched by employer | 50.00% | ||||
Contributions charged to expense | $ 656,000 | $ 639,000 | 599,000 | ||
Puerto Rico Plan [Member] | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Requisite service period for participation | 1 year | ||||
Requisite participant age | 21 years | ||||
Requisite work hours for participation | 1000 hours | ||||
Percentage of earnings which may be contributed | 20.00% | ||||
Employee contribution percentage | 4.00% | ||||
Eligible earnings which may be contributed, and matched by employer | 50.00% | ||||
Contributions charged to expense | $ 12,000 | $ 10,000 | $ 10,000 | ||
Employee Stock Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares of common stock reserved for issuance | 450,000 | ||||
Employee service period | 1 year | ||||
Maximum ownership rate | 10.00% | ||||
Purchase price, percentage of fair market value | 85.00% | ||||
Maximum annual purchases under plan | $ 5,000 | ||||
Shares issued under plan | 10,000 | 11,000 | 10,000 | ||
Proceeds from issuance of shares under plan | $ 236,000 | $ 209,000 | $ 209,000 | ||
Shares of unissued common stock reserved for future purchase | 104,000 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Stock-based Compensation Expense) (Details) - Employee Stock Purchase Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense before the recognized income tax benefit | [1] | $ 41 | $ 37 | $ 37 |
Income tax benefit | $ 16 | $ 14 | $ 14 | |
Discount rate employees are provided for purchases under the Stock Purchase Plan | 15.00% | 15.00% | 15.00% | |
[1] | Amounts are representative of the 15% discount employees are provided for purchases under the Stock Purchase Plan. |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Apr. 28, 2012 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Jun. 14, 2012 | |
2000 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved for issuance | 570,000 | 3,000,000 | |||
Common stock reserved, amount after amendment | 3,900,000 | ||||
Restricted Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total fair value of vested stock | $ 478,000 | $ 351,000 | $ 2,600,000 | ||
Weighted average fair value of shares granted | $ 24.43 | $ 25.50 | $ 20.85 | ||
Stock-based compensation expense | $ 906,000 | ||||
Cumulative share based compensation expense | 3,200,000 | ||||
Reduced share based compensation expense | 2,300,000 | ||||
Unrecognized share-based compensation expense | $ 8,600,000 | ||||
Unrecognized compensation cost, recognition period | 2 years 7 months 6 days | ||||
SARs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized share-based compensation expense | $ 288,000 | ||||
Unrecognized compensation cost, recognition period | 1 year 2 months 12 days | ||||
Defined maximum gain | $ 10 | $ 10 | $ 6.67 | $ 6.67 | |
Exercise price | $ 24.26 |
Stock Based Compensation (Sched
Stock Based Compensation (Schedule of Stock Option Activity) (Details) - Stock Options [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Jan. 30, 2016USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding at January 31, 2015 | shares | 21,999 |
Granted | shares | 0 |
Forfeited or expired | shares | 0 |
Exercised | shares | (14,999) |
Outstanding and exercisable at January 30, 2016 | shares | 7,000 |
Weighted-Average Exercise Price | |
Outstanding at January 31, 2015 | $ / shares | $ 9.49 |
Granted | $ / shares | |
Forfeited or expired | $ / shares | |
Exercised | $ / shares | $ 10.36 |
Outstanding and exercisable at January 30, 2016 | $ / shares | $ 7.63 |
Weighted-Average Remaining Contractual Term (Years) | |
Outstanding and exercisable at January 30, 2016 | 1 year 11 months 19 days |
Aggregate Intrinsic Value | |
Outstanding and exercisable at January 30, 2016 | $ | $ 109 |
Stock Based Compensation (Sch51
Stock Based Compensation (Schedule of Stock Options Exercised) (Details) - Stock Options [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total intrinsic value | [1] | $ 229 | $ 146 | $ 103 |
Total cash received | 155 | 77 | 69 | |
Associated excess income tax benefits recorded | $ 57 | $ 43 | $ 28 | |
[1] | Defined as the difference between the market value at exercise and the grant price of stock options exercised. |
Stock Based Compensation (Sch52
Stock Based Compensation (Schedule of Stock-based Compensation Expense for Stock Options, Restricted Stock, and SARs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense before the recognized income tax benefit | $ 3,340 | $ 906 | $ 2,985 |
Income tax benefit | 1,274 | 351 | 1,141 |
SARs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense before the recognized income tax benefit | 321 | 121 | 272 |
Income tax benefit | $ 123 | $ 47 | $ 104 |
Stock Based Compensation (Summa
Stock Based Compensation (Summary of Restricted Stock Awards) (Details) - Restricted Stock Awards [Member] - $ / shares | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding at February 1, 2014 | 705,576 | ||
Granted | 212,503 | ||
Vested | (19,531) | ||
Forfeited or expired | (69,056) | ||
Outstanding at January 31, 2015 | 829,492 | 705,576 | |
Outstanding at February 1, 2014 | $ 21.49 | ||
Granted | 24.43 | $ 25.50 | $ 20.85 |
Vested | 24.49 | ||
Forfeited or expired | 21.98 | ||
Outstanding at January 31, 2015 | $ 22.13 | $ 21.49 |
Stock Based Compensation (Sum54
Stock Based Compensation (Summary of SARs Transactions) (Details) - SARs [Member] | 12 Months Ended |
Jan. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at January 31, 2015 | shares | 40,375 |
Granted | shares | 156,175 |
Forfeited | shares | (8,625) |
Exercised | shares | (40,375) |
Outstanding at January 30, 2016 | shares | 147,550 |
Outstanding at January 31, 2015 | $ / shares | $ 17.17 |
Granted | $ / shares | 24.26 |
Forfeited | $ / shares | 24.26 |
Exercised | $ / shares | 17.17 |
Outstanding at January 30, 2016 | $ / shares | $ 24.26 |
Outstanding at January 30, 2016 | 4 years 1 month 6 days |
Stock Based Compensation (Sch55
Stock Based Compensation (Schedule of SARs Assumptions) (Details) - SARs [Member] - $ / shares | 3 Months Ended | 12 Months Ended | ||
Apr. 28, 2012 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Share Based Compensation Assumptions [Line Items] | ||||
Expected dividend yield | 1.00% | 1.00% | 1.00% | |
Expected volatility | 36.05% | 37.82% | 45.20% | |
Maximum life | 4 years 1 month 6 days | 2 years | 2 years 11 months 26 days | |
Exercise multiple | $ 1.34 | $ 1.31 | $ 1.38 | |
Maximum payout | $ 10 | $ 10 | $ 6.67 | $ 6.67 |
Minimum [Member] | ||||
Share Based Compensation Assumptions [Line Items] | ||||
Risk free interest rate yield curve | 0.22% | 0.01% | 0.01% | |
Employee exit rate | 2.20% | 2.20% | 2.20% | |
Maximum [Member] | ||||
Share Based Compensation Assumptions [Line Items] | ||||
Risk free interest rate yield curve | 1.33% | 1.18% | 1.49% | |
Employee exit rate | 9.00% | 9.00% | 9.00% |
Business Risk (Details)
Business Risk (Details) - Sales Revenue, Net [Member] - Supplier Concentration Risk [Member] | 12 Months Ended |
Jan. 30, 2016 | |
Product Information [Line Items] | |
Concentration Risk, Percentage | 43.00% |
Nike, Inc. [Member] | |
Product Information [Line Items] | |
Concentration Risk, Percentage | 31.00% |
Skechers USA, Inc. [Member] | |
Product Information [Line Items] | |
Concentration Risk, Percentage | 12.00% |
Quarterly Results (Details)
Quarterly Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |||||||||
Quarterly Results [Abstract] | |||||||||||||||||||
Net sales | $ 233,666 | $ 269,713 | $ 227,822 | $ 252,767 | $ 227,632 | $ 254,687 | $ 222,073 | $ 235,770 | $ 983,968 | $ 940,162 | $ 884,785 | ||||||||
Gross profit | 68,236 | 81,317 | 66,274 | 74,689 | 65,113 | 76,765 | 62,219 | 69,582 | 290,516 | 273,679 | 259,317 | ||||||||
Operating income | 6,553 | 15,173 | 7,877 | 17,030 | 4,588 | 17,792 | 4,264 | 15,209 | 46,633 | 41,853 | 43,667 | ||||||||
Net income | $ 4,168 | $ 9,386 | $ 4,817 | $ 10,396 | $ 2,975 | $ 10,817 | $ 2,584 | $ 9,151 | $ 28,767 | $ 25,527 | $ 26,871 | ||||||||
Net income per share - Basic | $ 0.21 | [1] | $ 0.47 | [1] | $ 0.24 | [1] | $ 0.52 | [1] | $ 0.15 | [1] | $ 0.54 | [1] | $ 0.13 | [1] | $ 0.45 | [1] | $ 1.45 | $ 1.27 | $ 1.33 |
Net income per share - Diluted | $ 0.21 | [1] | $ 0.47 | [1] | $ 0.24 | [1] | $ 0.52 | [1] | $ 0.15 | [1] | $ 0.54 | [1] | $ 0.13 | [1] | $ 0.45 | [1] | 1.45 | 1.27 | 1.32 |
Cash dividend paid per share | $ 0.255 | $ 0.24 | $ 0.24 | ||||||||||||||||
[1] | Per share amounts are computed independently for each of the quarters presented. The sum of the quarters may not equal the total year due to the impact of changes in weighted shares outstanding and differing applications of earnings under the two-class method. |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - $ / shares | 1 Months Ended | |
Mar. 31, 2016 | Mar. 15, 2016 | |
Subsequent Event [Line Items] | ||
Dividend declared, date declared | Mar. 15, 2016 | |
Dividend declared, amount per share | $ 0.065 | |
Dividend declared, payment date | Apr. 18, 2016 | |
Dividend declared, record date | Apr. 4, 2016 |
SCHEDULE II - VALUATION AND Q59
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
VALUATION AND QUALIFYING ACCOUNTS [Abstract] | |||
Balance at Beginning of Period | $ 147 | $ 131 | $ 111 |
Charged to Cost and Expenses | 105,258 | 104,511 | 97,399 |
Credited to Costs and Expenses | 105,227 | 104,495 | 97,379 |
Balance at End of Period | $ 178 | $ 147 | $ 131 |