Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Mar. 25, 2019 | Aug. 03, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Feb. 2, 2019 | ||
Entity Registrant Name | SHOE CARNIVAL INC | ||
Entity Central Index Key | 0000895447 | ||
Current Fiscal Year End Date | --02-02 | ||
Document Fiscal Year Focus | 2018 | ||
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 Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 15,374,819,000 | ||
Entity Public Float | $ 395,489,636 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 67,021 | $ 48,254 |
Accounts receivable | 1,219 | 6,270 |
Merchandise inventories | 257,539 | 260,500 |
Other | 11,534 | 5,562 |
Total Current Assets | 337,313 | 320,586 |
Property and equipment – net | 70,605 | 86,276 |
Deferred income taxes | 9,622 | 8,182 |
Other noncurrent assets | 459 | 536 |
Total Assets | 417,999 | 415,580 |
Current Liabilities: | ||
Accounts payable | 48,715 | 41,739 |
Accrued and other liabilities | 22,069 | 15,045 |
Total Current Liabilities | 70,784 | 56,784 |
Deferred lease incentives | 22,171 | 29,024 |
Accrued rent | 8,436 | 10,132 |
Deferred compensation | 12,108 | 11,372 |
Other | 67 | 966 |
Total Liabilities | 113,566 | 108,278 |
Shareholders’ Equity: | ||
Common stock, $.01 par value, 50,000,000 shares authorized, 20,529,227 and 20,529,227 shares issued, respectively | 205 | 205 |
Additional paid-in capital | 75,631 | 65,458 |
Retained earnings | 360,443 | 326,738 |
Treasury stock, at cost, 5,154,243 and 3,582,068 shares, respectively | (131,846) | (85,099) |
Total Shareholders’ Equity | 304,433 | 307,302 |
Total Liabilities and Shareholders’ Equity | $ 417,999 | $ 415,580 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 02, 2019 | Feb. 03, 2018 |
Statement Of Financial Position [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 | 20,529,227 | 20,529,227 |
Treasury shares, shares | 5,154,243 | 3,582,068 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 1,029,650 | $ 1,019,154 | $ 1,001,102 |
Cost of sales (including buying, distribution and occupancy costs) | 720,658 | 722,885 | 711,867 |
Gross profit | 308,992 | 296,269 | 289,235 |
Selling, general and administrative expenses | 259,232 | 258,568 | 251,323 |
Operating income | 49,760 | 37,701 | 37,912 |
Interest income | (747) | (4) | (6) |
Interest expense | 150 | 292 | 169 |
Income before income taxes | 50,357 | 37,413 | 37,749 |
Income tax expense | 12,222 | 18,480 | 14,232 |
Net income | $ 38,135 | $ 18,933 | $ 23,517 |
Net income per share: | |||
Basic | $ 2.51 | $ 1.15 | $ 1.28 |
Diluted | $ 2.45 | $ 1.15 | $ 1.28 |
Weighted average shares: | |||
Basic | 15,111 | 16,220 | 18,017 |
Diluted | 15,499 | 16,227 | 18,022 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] |
Balance at Jan. 30, 2016 | $ 339,802,000 | $ 206,000 | $ (21,517,000) | $ 66,805,000 | $ 294,308,000 |
Balance, shares at Jan. 30, 2016 | 20,604 | (956) | |||
Dividends | (5,184,000) | (5,184,000) | |||
Stock-based compensation income tax benefit | 3,000 | 3,000 | |||
Employee stock purchase plan purchases | 223,000 | $ 233,000 | (10,000) | ||
Employee stock purchase plan purchases, shares | 10 | ||||
Restricted stock awards | 0 | $ 5,072,000 | (5,072,000) | ||
Restricted stock awards, shares | (35) | 225 | |||
Shares surrendered by employees to pay taxes on restricted stock | (421,000) | $ (421,000) | |||
Shares surrendered by employees to pay taxes on restricted stock, shares | (16) | ||||
Purchase of common stock for Treasury | (42,604,000) | $ (42,604,000) | |||
Purchase of common stock for treasury, shares | (1,697) | ||||
Stock-based compensation expense | 3,546,000 | 3,546,000 | |||
Net income | 23,517,000 | 23,517,000 | |||
Balance at Jan. 28, 2017 | 318,882,000 | $ 206,000 | $ (59,237,000) | 65,272,000 | 312,641,000 |
Balance, shares at Jan. 28, 2017 | 20,569 | (2,434) | |||
Adoption of Accounting Standards Update No. 2016-09 | 0 | (188,000) | 188,000 | ||
Stock option exercises | 54,000 | $ 168,000 | (114,000) | ||
Stock option exercises, shares | 7 | ||||
Dividends | (5,024,000) | (5,024,000) | |||
Employee stock purchase plan purchases | 205,000 | $ 249,000 | (44,000) | ||
Employee stock purchase plan purchases, shares | 10 | ||||
Restricted stock awards | 0 | $ (1,000) | $ 4,546,000 | (4,545,000) | |
Restricted stock awards, shares | (40) | 139 | |||
Shares surrendered by employees to pay taxes on restricted stock | (1,027,000) | $ (1,027,000) | |||
Shares surrendered by employees to pay taxes on restricted stock, shares | (45) | ||||
Purchase of common stock for Treasury | (29,798,000) | $ (29,798,000) | |||
Purchase of common stock for treasury, shares | (1,259) | ||||
Stock-based compensation expense | 5,077,000 | 5,077,000 | |||
Net income | 18,933,000 | 18,933,000 | |||
Balance at Feb. 03, 2018 | 307,302,000 | $ 205,000 | $ (85,099,000) | 65,458,000 | 326,738,000 |
Balance, shares at Feb. 03, 2018 | 20,529 | (3,582) | |||
Adoption of Accounting StandardsCodification 606 | 620,000 | 620,000 | |||
Dividends | (5,050,000) | (5,050,000) | |||
Employee stock purchase plan purchases | 177,000 | $ 169,000 | 8,000 | ||
Employee stock purchase plan purchases, shares | 7 | ||||
Restricted stock awards | 0 | $ (543,000) | 543,000 | ||
Restricted stock awards, shares | (39) | ||||
Shares surrendered by employees to pay taxes on restricted stock | (327,000) | $ (327,000) | |||
Shares surrendered by employees to pay taxes on restricted stock, shares | (13) | ||||
Purchase of common stock for Treasury | (46,046,000) | $ (46,046,000) | |||
Purchase of common stock for treasury, shares | (1,527) | ||||
Stock-based compensation expense | 9,622,000 | 9,622,000 | |||
Net income | 38,135,000 | 38,135,000 | |||
Balance at Feb. 02, 2019 | $ 304,433,000 | $ 205,000 | $ (131,846,000) | $ 75,631,000 | $ 360,443,000 |
Balance, shares at Feb. 02, 2019 | 20,529 | (5,154) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 |
Statement Of Stockholders Equity [Abstract] | |||
Dividends | $ 0.315 | $ 0.295 | $ 0.275 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Cash Flows From Operating Activities | |||
Net income | $ 38,135 | $ 18,933 | $ 23,517 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 21,843 | 23,804 | 23,699 |
Stock-based compensation | 10,162 | 5,017 | 3,822 |
(Gain)/loss on retirement and impairment of assets, net | (1,264) | 5,511 | 4,794 |
Deferred income taxes | (1,440) | 1,418 | (1,381) |
Lease incentives | 634 | 4,818 | 3,825 |
Other | (8,650) | (6,993) | (4,619) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 3,905 | (951) | (2,293) |
Merchandise inventories | 2,961 | 19,146 | 13,232 |
Accounts payable and accrued liabilities | 12,688 | (30,132) | (982) |
Other | (4,833) | (223) | 175 |
Net cash provided by operating activities | 74,141 | 40,348 | 63,789 |
Cash Flows From Investing Activities | |||
Purchases of property and equipment | (7,413) | (19,653) | (21,832) |
Other | 2,998 | 0 | 0 |
Net cash used in investing activities | (4,415) | (19,653) | (21,832) |
Cash Flow From Financing Activities | |||
Borrowings under line of credit | 0 | 88,600 | 0 |
Payments on line of credit | 0 | (88,600) | 0 |
Proceeds from issuance of stock | 177 | 259 | 223 |
Dividends paid | (4,763) | (4,819) | (5,028) |
Excess tax benefits from stock-based compensation | 0 | 0 | 3 |
Purchase of common stock for treasury | (46,046) | (29,798) | (42,604) |
Shares surrendered by employees to pay taxes on restricted stock | (327) | (1,027) | (421) |
Net cash used in financing activities | (50,959) | (35,385) | (47,827) |
Net increase (decrease) in cash and cash equivalents | 18,767 | (14,690) | (5,870) |
Cash and cash equivalents at beginning of year | 48,254 | 62,944 | 68,814 |
Cash and Cash Equivalents at End of Year | 67,021 | 48,254 | 62,944 |
Supplemental disclosures of cash flow information: | |||
Cash paid during year for interest | 150 | 292 | 170 |
Cash paid during year for income taxes | 13,419 | 16,832 | 14,696 |
Capital expenditures incurred but not yet paid | $ 130 | $ 783 | $ 168 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Feb. 02, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [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 the “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 35 states within the continental United States and in Puerto Rico. We 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 |
Feb. 02, 2019 | |
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 2018, 2017 and 2016 relate to the fiscal years ended February 2, 2019, February 3, 2018 and January 28, 2017, respectively. Fiscal year 2017 consisted of 53 weeks and the other fiscal years 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 $67.0 million at February 2, 2019 and $48.3 million at February 3, 2018. Credit and debit card receivables and receivables due from a third party totaling $8.2 million and $5.4 million were included in cash equivalents at February 2, 2019 and February 3, 2018, 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 February 2, 2019, all invested cash was held in money market mutual funds. There was no invested cash as of February 3, 2018. 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 Our financial assets as of February 2, 2019 and February 3, 2018 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 sheets as of February 2, 2019 and February 3, 2018 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 these periods. 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 net realizable value using the first-in, first-out (FIFO) method. For determining net 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 the lower of cost or net realizable value 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 includes 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. Cost 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 to twenty-five years. Expenditures for maintenance and repairs are charged to expense as incurred. Expenditures 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, undiscounted future cash flows for a store are determined to be less than the carrying value of the store’s assets, an impairment loss is recorded 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. If actual operating results or market conditions differ from those anticipated, the carrying value of certain of our assets may prove unrecoverable and we may incur additional impairment charges in the future. There were no impairments of long-lived assets recorded in fiscal 2018. We recorded non-cash impairment charges of approximately $5.1 million and $4.5 million in fiscal years 2017 and 2016, respectively. 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 to protect 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 February 2, 2019 and February 3, 2018, our self-insurance reserves totaled $3.4 million and $3.6 million, respectively. We record self-insurance expense 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 Substantially all of our revenue is for a single performance obligation and is recognized when control passes to customers. We consider control to have transferred when we have a present right to payment, the customer has title to the product, physical possession of the product has been transferred and the risks and rewards of the product that we retain are minimal. For our brick-and-mortar stores, we satisfy our performance obligation and control is transferred at the point of sale when the customer takes possession of the products. This also includes the “buy online, pick up in store” scenario and includes Shoes 2U if the customer chooses the option of picking up their goods in-store. For sales made through our e-commerce site or mobile app in which the customer chooses home delivery, we transfer control and recognize revenue when the product is shipped from our stores or distribution center. This also includes Shoes 2U if the customer chooses the option of having goods delivered to their home. The redemption of loyalty points under our Shoe Perks loyalty rewards program and redemptions of gift cards may be part of any transaction. These situations represent separate performance obligations that are embedded in the contract and are more fully described below. 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. See Note 4 – “Revenue” for additional discussion of our revenue recognition policies as well as additional disclosures on revenue from contracts with customers. 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, supplies and rent 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 $41.2 million, $40.1 million and $42.9 million in fiscal years 2018, 2017 and 2016, respectively. Stock-Based Compensation We recognize compensation expense for stock-based awards based on a fair value based method. Stock-based awards may include stock options, stock appreciation rights, restricted stock, stock units and other stock-based 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 account for forfeitures as they occur in calculating stock-based compensation expense for the period. For performance-based stock awards, we estimate the probability of vesting based on the likelihood that the awards will meet their performance goals. 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 February 2, 2019 February 3, 2018 January 28, 2017 (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 $ 38,135 $ 18,933 $ 23,517 Amount allocated to participating securities (152 ) (250 ) (487 ) Net income available for basic common shares and basic earnings per share $ 37,983 15,111 $ 2.51 $ 18,683 16,220 $ 1.15 $ 23,030 18,017 $ 1.28 Diluted Earnings per Share: Net income $ 38,135 $ 18,933 $ 23,517 Amount allocated to participating securities (152 ) (250 ) (487 ) Adjustment for dilutive potential common shares 4 388 0 7 0 5 Net income available for diluted common shares and diluted earnings per share $ 37,987 15,499 $ 2.45 $ 18,683 16,227 $ 1.15 $ 23,030 18,022 $ 1.28 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 restricted 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 because 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. Subsequently, the FASB also issued accounting standards updates which clarify this guidance. The underlying principle of this comprehensive model is that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the payment to which the company expects to be entitled in exchange for those goods or services. We adopted the new revenue guidance on February 4, 2018, using a modified retrospective transition approach. We recorded an increase in retained earnings of $620,000 as a cumulative effect of the adoption based on our evaluation of incomplete contracts as of the adoption date. This increase to retained earnings included pre-tax adjustments in connection with e-commerce revenue of $171,000 and recognition of breakage revenue for unredeemed gift cards of $649,000, partially offset by a $200,000 adjustment related to the tax impact of the cumulative effect adjustments. The cumulative effect e-commerce adjustment is related to recognizing revenue when products are shipped from our stores or distribution center under the new guidance rather than recognizing revenue when the shipments were delivered under the previous revenue guidance. The cumulative effect gift card breakage adjustment is related to the unredeemed portion of our gift cards, which are now estimated using historical breakage percentages and recognized based on expected gift card usage, rather than waiting until the likelihood of redemption becomes remote. In addition to these changes, we also now record a right of return asset in inventory for the estimated cost of the inventory expected to be returned. Under the previous revenue guidance, we recorded a net returns reserve in accrued and other liabilities. The adoption of this guidance did not have a material impact on our consolidated financial statements. See Note 4 – “Revenue” for additional discussion of this adoption as well as additional disclosures on revenue from contracts with customers. 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 was updated in July 2018. This update, among other things, added a transition option allowing entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than the earliest period presented. This guidance became effective for us on February 3, 2019 and will include interim periods in fiscal 2019. We have elected the optional transition method to apply the standard as of the effective date and therefore, we will not apply the standard to the comparative periods presented in our financial statements. . Therefore, the adoption of standard will have a material impact on our consolidated balance sheet. While we are continuing to assess all potential impacts of the standard, we expect to record lease liabilities of approximately $240 million to $260 million based on the present value of the remaining minimum rental payments using incremental borrowing rates as of the effective date. In May 2017, the FASB issued guidance which clarifies what constitutes a modification of a share-based payment award. We adopted the provisions of this guidance on February 4, 2018. The adoption of this guidance did not have a material impact on our consolidated financial statements. In March 2018, the FASB issued guidance on the income tax accounting implications of the U.S. Tax Cuts and Jobs Act (the “Tax Act”), to address the application of guidance in situations when a company does not have the necessary information available, prepared, or analyzed to complete the accounting for certain income tax effects of the Tax Act. The guidance provides a one-year measurement period to assess the Tax Act, which began in the reporting period of the enactment date of the Tax Act. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, we initially made reasonable estimates of the effects and recorded provisional amounts in our financial statements. We recorded $4.4 million of additional income tax expense in the fourth quarter of fiscal 2017 and an income tax benefit of $0.1 million during fiscal 2018 related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they were expected to reverse in the future. As of the end of fiscal 2018, we have filed our fiscal 2017 federal income tax return and have completed our assessment of the final impact of the Tax Act. In August 2018, the FASB issued guidance that addressed the diversity in practice surrounding the accounting for costs incurred to implement a cloud computing hosting arrangement that is a service contract by establishing a model for capitalizing or expensing such costs, depending on their nature and the stage of the implementation project during which they are incurred. Any capitalized costs are to be amortized over the reasonably certain term of the hosting arrangement and presented in the same line as the service arrangement's fees within the consolidated statements of operations. This guidance also requires enhanced qualitative and quantitative disclosures surrounding hosting arrangements that are service contracts. We are presently in the process of implementing a cloud computing hosting arrangement that is a service contract in connection with our Customer Relationship Management (“CRM”) program. The costs incurred during the application-development stage of our CRM program are being capitalized in accordance with this new guidance and amortized over the term of the contract with our third-party service provider, and because our CRM program is a significant component of our strategic plan, these costs have a material impact on our consolidated financial statements and related disclosures. We early adopted this guidance on a prospective basis on November 4, 2018. In August 2018, the FASB issued guidance which modifies the disclosure requirements on fair value measurements, including the consideration of costs and benefits. This guidance is effective for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. We are in the process of evaluating the impact of this guidance on our consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Feb. 02, 2019 | |
Fair Value Disclosures [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. Generally, these fair value measures are model-based valuation techniques such as discounted cash flows, and are based on the best information available, including our own data. Fair values of our long-lived assets are estimated using an income-based approach and are classified within Level 3 of the valuation hierarchy. The following table presents assets that are measured at fair value on a recurring basis at February 2, 2019 and February 3, 2018. 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 February 2, 2019: Cash equivalents – money market mutual fund $ 68,500 $ - $ - $ 68,500 As of February 3, 2018: Cash equivalents – money market mutual fund $ - $ - $ - $ - The fair values of cash and cash equivalents, 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 undiscounted 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 estimated future cash flows. An increase or decrease in projected cash flow can significantly decrease or increase the fair value of these assets, which would have an effect on the impairment recorded. There were no impairments of long-lived assets recorded during the 52 weeks ended February 2, 2019. During the 53 weeks ended February 3, 2018, we recorded an impairment charge of $5.1 million on long-lived assets held and used, which was included in selling, general and administrative expenses for the period. Subsequent to this impairment, these long-lived assets had a remaining unamortized basis of $4.7 million. During the 52 weeks ended January 28, 2017, we recorded an impairment charge of $4.5 million on long-lived assets held and used, which was included in selling, general and administrative expenses for the period. Subsequent to this impairment, these long-lived assets had a remaining unamortized basis of $4.7 million. |
Revenue
Revenue | 12 Months Ended |
Feb. 02, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 4 – Revenue We adopted and applied the new revenue guidance in Accounting Standards Codification 606 (“ASC 606”) as of February 4, 2018 using the modified retrospective transition approach. Based on this approach, the consolidated financial statements for prior fiscal years were not restated and are reported under the prior revenue guidance in effect for the fiscal years presented. We elected the practical expedient to treat shipping and handling activities associated with freight charges that occur after control of the product transfers to the customer as fulfillment activities. These costs are expensed as incurred and included in cost of sales in our consolidated statements of income. We also elected the practical expedient for sales tax collected, which allows us to exclude from our transaction price any amounts collected from customers for sales tax and other similar taxes. There were no changes to our comparative reporting of shipping and handling costs included in cost of sales or accounting for sales tax as a result of the adoption of ASC 606. Accounting Policy and Performance Obligations We operate as a multi-channel, family footwear retailer and provide the convenience of shopping at our brick-and-mortar stores or shopping online through our e-commerce and mobile platforms. As part of our multi-channel strategy, we offer Shoes 2U, a program that enables us to ship product to a customer’s home or selected store if the product is not in stock. We also offer “buy online, pick up in store” services for our customers. “Buy online, pick up in store” provides the convenience of local pickup for our customers. Substantially all of our revenue is for a single performance obligation and is recognized when control passes to customers. We consider control to have transferred when we have a present right to payment, the customer has title to the product, physical possession of the product has been transferred and the risks and rewards of the product that we retain are minimal. For our brick-and-mortar stores, we satisfy our performance obligation and control is transferred at the point of sale when the customer takes possession of the products. This also includes the “buy online, pick up in store” scenario described above and includes Shoes 2U if the customer chooses the option of picking up their goods in-store. For sales made through our e-commerce site or mobile app in which the customer chooses home delivery, we transfer control and recognize revenue when the product is shipped from our stores or distribution center. This also includes Shoes 2U if the customer chooses the option of having goods delivered to their home. The redemption of loyalty points under our Shoe Perks loyalty rewards program (“Shoe Perks”) and redemptions of gift cards may be part of any transaction. These situations represent separate performance obligations that are embedded in the contract. Transaction Price and Payment Terms The transaction price is the amount of consideration we expect to receive from our customers and is reduced by any stated promotional discounts at the time of purchase. The transaction price may be variable due to terms that permit customers to exchange or return products for a refund within a limited period of time. The implicit contract with the customer reflected in the transaction receipt states the final terms of the sale, including the description, quantity, and price of each product purchased. The customer agrees to a stated price in the contract that does not vary over the term of the contract. Taxes imposed by governmental authorities such as sales taxes are excluded from net sales. Our brick-and-mortar stores accept various forms of payment from customers at the point of sale. These include cash, checks, credit/debit cards and gift cards. Our e-commerce and mobile platforms accept credit/debit cards, PayPal and gift cards as forms of payment. Payments made for products are generally collected when control passes to the customer, either at the point of sale or at the time the customer order is shipped. For Shoes 2U transactions, customers may order the product at the point of sale. For these transactions, customers pay in advance and unearned revenue is recorded as a contract liability. We recognize the related revenue when control has been transferred to the customer (i.e., when the product is picked up by the customer or shipped to the customer). Unearned revenue related to Shoes 2U was not material to our consolidated financial statements at February 2, 2019. Returns and Refunds It is our policy to allow brick-and-mortar and online customers to exchange or return products for a refund within a limited period of time. We have established a returns allowance based upon historical experience in order to estimate these transactions. This allowance is recorded as a reduction in sales with a corresponding refund liability recorded in accrued and other liabilities. The estimated cost of merchandise inventory is recorded as a reduction to cost of sales and an increase in merchandise inventories. At February 2, 2019, approximately $600,000 of refund liabilities and $410,000 of right of return assets associated with estimated product returns were recorded in our consolidated balance sheet. Contract Liabilities We sell gift cards in our brick-and-mortar stores and through our e-commerce and mobile platforms. Gift card purchases are recorded as an increase to contract liabilities at the time of purchase and a decrease to contract liabilities when a customer redeems a gift card. Under the previous revenue guidance, when a customer did not use the entire value of their gift card, we recorded this unredeemed portion of the gift card as revenue when the likelihood of redemption became remote (i.e., breakage). Under ASC 606, estimated breakage is determined based on historical breakage percentages and recognized as revenue based on expected gift card usage. This new policy results in earlier recognition of breakage revenue compared to the previous guidance. Consistent with the previous guidance, we do not record breakage revenue when escheat liability to relevant jurisdictions exists. At February 2, 2019, approximately $1.6 million of contract liabilities associated with unredeemed gift cards were recorded in our consolidated balance sheet. We expect the revenue associated with these liabilities to be recognized in proportion to the pattern of customer redemptions within two years. We offer our customers the opportunity to enroll in our Shoe Perks program, which accrues points and provides customers with the opportunity to earn rewards. Points under Shoe Perks are earned primarily by making purchases either in-store or through our online platform. Once a certain threshold of accumulated points is reached, the customer earns a reward certificate, which is redeemable at any of our stores or online. Under the previous guidance, after the certificates were batched, issued and awarded to customers at the end of the month, we recorded a liability for the estimated cost of the reward certificates expected to be redeemed. This liability was immaterial at the adoption date and all related certificates expired prior to May 5, 2018 in accordance with the terms of the awards. Under ASC 606, when a Shoe Perks customer makes a purchase, we allocate the transaction price between the goods and the loyalty reward points based on the relative standalone selling price. The portion allocated to the material right is recorded as a contract liability for rewards that are expected to be redeemed. We then recognize revenue based on an estimate of when customers exercise their rights to redeem the rewards, which incorporates an estimate of points expected to expire using historical rates. At February 2, 2019, approximately $245,000 of contract liabilities associated with loyalty rewards were recorded in our consolidated balance sheet. We expect the revenue associated with these liabilities to be recognized in proportion to the pattern of customer redemptions in less than one year. We are a multi-channel retailer that provides our customers with the convenience of home delivery. Our customers may choose this delivery method when purchasing products online, through our mobile app or via Shoes 2U. These products are picked up at our stores or distribution center and delivered by third-party freight companies. Under the previous guidance, which was primarily based on a risks and rewards approach, when product was shipped to our customers, we recognized revenue based on an estimated customer receipt date. Since we collect payment upon shipment, this resulted in deferred revenue, which was recognized when the customer took receipt of the product. Under ASC 606, which is control-based, we transfer control and recognize revenue when the product is shipped from our stores or distribution center. This change had the effect of eliminating the deferred revenue accounting treatment under the previous guidance, and we no longer record an initial liability when sales are shipped to our customers. Impact of Adoption The impact of the new guidance on our consolidated balance sheet as of February 2, 2019 is below. In the table, the adjustments for merchandise inventories relate to: (1) the classification of the right of return assets associated with product returns previously recorded net of the refund liability in accrued and other liabilities, and (2) the cost basis of inventory for product shipped to customers not yet received under the previous revenue guidance. The adjustment for deferred income taxes relates to the tax effect of the cumulative effect adjustments. The adjustments to accrued and other liabilities relate to: (1) the classification of the right of return assets from accrued and other liabilities to merchandise inventories, (2) recognition of deferred revenue for product shipped to customers not yet received, and (3) the adjustment to contract liabilities for unredeemed gift cards and award certificates. February 2, 2019 (In thousands) As Reported Adjustments As Adjusted Merchandise inventories $257,539 $(253) $257,286 Deferred income taxes 9,622 100 9,722 Accrued and other liabilities (22,069) (363) (22,432) The impact of the new guidance on our consolidated statement of income for the fiscal year ended February 2, 2019 is below. In the table, the adjustments to net sales relate to: (1) deferred revenue for product shipped to customers not yet received, (2) breakage revenue for unredeemed gift cards, and (3) adjustments associated with our rewards program. The adjustment to cost of sales relates to the cost associated with product shipped to customers not yet received under the previous revenue guidance. The impact of the new guidance on income tax expense was immaterial for the fiscal year ended February 2, 2019. February 2, 2019 (In thousands) As Reported Adjustments As Adjusted Net sales $1,029,650 $47 $1,029,697 Cost of sales (including buying, distribution and occupancy costs) 720,658 (73) 720,585 Disaggregation of Revenue by Product Category Revenue is disaggregated by product category below. Net sales and percentage of net sales for the fiscal years ended February 2, 2019, February 3, 2018 and January 28, 2017 were as follows: (In thousands) February 2, 2019 February 3, 2018 January 28, 2017 Non-Athletics: Women's $ 250,320 24 % $ 244,945 24 % $ 256,271 26 % Men's 144,628 14 141,295 14 137,729 14 Children's 51,963 5 50,255 5 51,496 5 Total 446,911 43 436,495 43 445,496 45 Athletics: Women's 179,411 18 177,627 17 165,179 16 Men's 215,796 21 219,224 22 217,969 22 Children's 138,686 14 138,074 14 127,858 13 Total 533,893 53 534,925 53 511,006 51 Accessories 45,100 4 43,606 4 41,259 4 Other 3,746 - 4,128 - 3,341 - Total $ 1,029,650 100 % $ 1,019,154 100 % $ 1,001,102 100 % |
Property and Equipment - Net
Property and Equipment - Net | 12 Months Ended |
Feb. 02, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment-Net | Note 5 – Property and Equipment - Net The following is a summary of property and equipment: (In thousands) February 2, 2019 February 3, 2018 Furniture, fixtures and equipment $ 156,596 $ 154,844 Leasehold improvements 110,824 111,967 Total 267,420 266,811 Less accumulated depreciation and amortization (196,815 ) (180,535 ) Property and equipment – net $ 70,605 $ 86,276 |
Accrued and Other Liabilities
Accrued and Other Liabilities | 12 Months Ended |
Feb. 02, 2019 | |
Payables And Accruals [Abstract] | |
Accrued and Other Liabilities | Note 6 – Accrued and Other Liabilities Accrued and other liabilities consisted of the following: (In thousands) February 2, 2019 February 3, 2018 Employee compensation and benefits $ 9,771 $ 3,231 Self-insurance reserves 3,447 3,565 Gift cards 1,558 2,382 Sales and use tax 2,131 1,797 Other 5,162 4,070 Total accrued and other liabilities $ 22,069 $ 15,045 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Feb. 02, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 7 – Long-Term Debt On March 27, 2017 we entered into a second amendment of our current unsecured credit agreement (the “Credit Agreement”) to extend the expiration date by five years and renegotiate certain terms and conditions. The Credit Agreement The Credit Agreement contains covenants which stipulate: (1) Total Shareholders’ Equity will not fall below $250.0 million at the end of each fiscal quarter; (2) the ratio of funded debt plus three times rent to EBITDA plus rent will not exceed 2.5 to 1.0; (3) the aggregate amount of cash dividends for a fiscal year will not exceed $10 million; and (4) distributions in the form of redemptions of Equity Interests can be made solely with cash on hand so long as before and immediately after such distributions there are no revolving loans outstanding under the Credit Agreement. Should a default condition be reported, the lenders may preclude additional borrowings and call all loans and accrued interest at their discretion. As of February 2, 2019, there were $1.2 million in letters of credit outstanding and $48.8 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% with the prime rate defined as the greater of (a) the Federal Fund rate plus 0.50% or (b) the interest rate announced from time to time by the agent bank as its “prime rate” or (2) LIBOR plus 1.25% to 2.50%, depending on our achievement of certain performance criteria. A commitment fee is charged at 0.20% to 0.35% per annum, depending on our achievement of certain performance criteria, on the unused portion of the bank group’s commitment. The Credit Agreement expires on March 27, 2022. |
Leases
Leases | 12 Months Ended |
Feb. 02, 2019 | |
Leases [Abstract] | |
Leases | Note 8 – Leases We lease all of our retail locations and certain equipment under operating leases expiring at various dates through fiscal 2031. 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. There were no assignments of operating leases to third parties in fiscal 2018, fiscal 2017 or fiscal 2016. Rental expense for our operating leases consisted of: (In thousands) 2018 2017 2016 Rentals for real property $ 61,127 $ 66,835 $ 65,900 Contingent rent 46 70 92 Equipment rentals 55 41 62 Total $ 61,228 $ 66,946 $ 66,054 Future minimum lease payments at February 2, 2019 were as follows: (In thousands) Operating Leases 2019 $ 60,807 2020 51,937 2021 50,687 2022 41,536 2023 34,035 Thereafter to 2031 56,437 Total $ 295,439 |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 – Income Taxes The provision for income taxes consisted of: (In thousands) 2018 2017 2016 Current: Federal $ 11,468 $ 14,579 $ 13,366 State 1,693 2,241 1,997 Puerto Rico 700 242 250 Total current 13,861 17,062 15,613 Deferred: Federal (894 ) 2,383 (153 ) State (745 ) (965 ) (1,228 ) Puerto Rico 643 2,500 (1,494 ) Total deferred (996 ) 3,918 (2,875 ) Valuation allowance (643 ) (2,500 ) 1,494 Total provision $ 12,222 $ 18,480 $ 14,232 We realized a tax benefit of $26,100 in fiscal year 2018, tax expense of $17,800 in fiscal year 2017, and a tax benefit of $2,900 in fiscal year 2016 as a result of the exercise of stock options and the vesting of restricted stock. These amounts were recorded in tax expense in fiscal 2018 and shareholder’s equity in fiscal 2017 and fiscal 2016. Reconciliation between the statutory federal income tax rate and the effective income tax rate is as follows: Fiscal years 2018 2017 2016 U.S. Federal statutory tax rate 21.0 % 33.7 % 35.0 % State and local income taxes, net of federal tax benefit 3.0 3.0 2.1 Puerto Rico 4.2 0.7 0.2 Valuation allowance (1.3 ) (6.7 ) 4.0 Tax impact of foreign losses (2.7 ) 6.3 (3.6 ) Remeasurement of deferred tax assets and liabilities due to the Tax Act 0.0 11.6 0.0 Other 0.1 0.8 0.0 Effective income tax rate 24.3 % 49.4 % 37.7 % We recorded $310,000, $223,000 and $224,000 in federal employment-related tax credits in fiscal 2018, 2017 and 2016, respectively. Deferred income taxes are the result of temporary differences in the recognition of revenue and expense for tax and financial reporting purposes. The sources of these differences and the tax effect of each are as follows: (In thousands) February 2, 2019 February 3, 2018 Deferred tax assets: Accrued rent $ 2,051 $ 2,464 Accrued compensation 7,843 5,752 Accrued employee benefits 129 349 Inventory 787 699 Self-insurance reserves 510 518 Lease incentives 5,429 7,145 Net operating loss carry forward 563 1,218 Other 288 488 Total deferred tax assets 17,600 18,633 Valuation allowance (574 ) (1,217 ) Total deferred tax assets – net of valuation allowance 17,026 17,416 Deferred tax liabilities: Property and equipment 6,484 8,588 Capitalized costs 636 646 Other 284 0 Total deferred tax liabilities 7,404 9,234 Long-term deferred income taxes, net $ 9,622 $ 8,182 At the end of fiscal 2018, we estimated foreign net operating loss carry forwards of $1.5 million, which expire between fiscal 2024 and fiscal 2027. At February 2, 2019, we had a valuation allowance of $574,000 against these net operating losses that would be realizable only upon the generation of future taxable income in the jurisdiction in which the losses were incurred. At February 2, 2019 and February 3, 2018, there were no unrecognized tax liabilities or related accrued penalties or interest in other liabilities on the consolidated balance sheets. On December 22, 2017, the U.S. government enacted the Tax Act, which made significant changes to the Internal Revenue Code of 1986, as amended, including, but not limited to, reducing the U.S. corporate statutory tax rate from 35% to 21%, and eliminating or limiting deduction of several expenses which were previously deductible. In connection with the Tax Act, the Securities and Exchange Commission staff issued Staff Accounting Bulletin 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provided a measurement period of one year from the Tax Act’s enactment date for companies to complete their accounting under the income tax guidance. For our initial analysis of the impact of the Tax Act, we recorded additional income tax expense of $4.4 million for the fiscal year ended February 3, 2018, which was related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they were expected to reverse in the future. We also calculated our fiscal 2017 income tax expense using a blended rate of 33.7%, which is based on the applicable tax rates before and after the Tax Act and the number of days in the fiscal year that the respective tax rates were in effect. We have determined that these provisions were the only provisions of the Tax Act that impacted fiscal 2017 results. In fiscal 2018, we obtained additional information and recorded an income tax benefit of $0.1 million. As of the end of fiscal 2018, we have filed our fiscal 2017 federal income tax return and have completed our assessment of the final impact of the Tax Act. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Feb. 02, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 10 – Employee Benefit Plans Retirement Savings Plans 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 years of age and who work at least 1,000 hours in a defined year. The primary savings mechanism under the Domestic Savings Plan is a 401(k) plan under which an employee may contribute up to 20% of annual earnings with us matching the first 4% at a rate of 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 $738,000, $733,000, and $695,000 in fiscal years 2018, 2017, and 2016, 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 year, are at least 21 years of age and who work at least 1,000 hours in a defined year. This plan is similar to our Domestic Savings Plan, whereby an employee may contribute up to 20% of his or her annual earnings, with us matching the first 4% at a rate of 50%. Contributions charged to expense were $16,000, $18,000 and $15,000 in fiscal years 2018, 2017 and 2016, 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 450,000 shares of our common stock (subject to adjustment for any subsequent stock splits, stock dividends and certain other changes in our 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% owner of our common stock, at 85% of the then fair market value up to a maximum of $5,000 in any calendar year. Under the Stock Purchase Plan, 7,000, 10,000 and 10,000 shares of common stock were purchased by participants in the plan and proceeds to us for the sale of those shares were approximately $177,000, $205,000 and $223,000 for fiscal years 2018, 2017 and 2016, respectively. At February 2, 2019, there were 77,000 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) 2018 2017 2016 Stock-based compensation expense before the recognized income tax benefit (1) $ 31 $ 36 $ 39 Income tax benefit $ 8 $ 18 $ 15 (1) Amounts are representative of the 15% discount employees are provided for purchases under the Stock Purchase Plan. Deferred Compensation Plan In fiscal 2000, we established a non-qualified deferred compensation plan for certain key employees who, due to Internal Revenue Service guidelines, cannot take full advantage of the employer-sponsored 401(k) plan. Participants in the plan elect on an annual basis to defer, on a pre-tax basis, portions of their current compensation until retirement, or earlier if so elected. While not required to, we can match a portion of the employees’ contributions, which would be subject to vesting requirements. The compensation deferred under this plan is credited with earnings or losses measured by the rate of return on investments elected by plan participants. The plan is currently unfunded. Compensation expense for our match and earnings on the deferred amounts was $154,000 for fiscal 2018, $1.8 million for fiscal 2017 and $1.5 million for fiscal 2016. The total deferred compensation liability at February 2, 2019 and February 3, 2018 was $12.1 million and $11.6 million, respectively. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Feb. 02, 2019 | |
Share Based Compensation [Abstract] | |
Stock Based Compensation | Note 11 – Stock Based Compensation Compensation Plan Summaries At our 2017 annual meeting of shareholders held on June 13, 2017, our shareholders approved a new equity incentive plan, the Shoe Carnival, Inc. 2017 Equity Incentive Plan (the “2017 Plan”), which replaces our 2000 Stock Option and Incentive Plan, as amended (the “2000 Plan”). We may issue stock options, stock appreciation rights, restricted stock, stock units and other stock-based awards to eligible participants under the 2017 Plan. According to the terms of the 2017 Plan, upon approval of the 2017 Plan by our shareholders, no further awards may be made under the 2000 Plan. A maximum of 1,000,000 shares of our common stock are available for issuance and sale under the 2017 Plan. In addition, any shares of our common stock subject to an award granted under the 2017 Plan, or to an award granted under the 2000 Plan that was outstanding on the date our shareholders approved the 2017 Plan, that expires, is cancelled or forfeited, or is settled for cash will, to the extent of such cancellation, forfeiture, expiration or cash settlement, automatically become available for future awards under the 2017 Plan. Stock-based compensation includes stock options, cash-settled stock appreciation rights (SARs), restricted stock awards, restricted stock units and performance stock units. Stock options that were 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 anniversaries of the date of the grant and were assigned a 10-year term from the date of grant. During fiscal 2017, all remaining stock options were exercised. Equity awards issued to employees are classified as either performance-based or service-based. Performance-based restricted stock awards historically were granted such that they vest upon the achievement of specified levels of annual earnings per diluted share during a six-year period starting from the grant date. Should the annual earnings per diluted share criteria not be met within the six-year period from the grant date, any shares still restricted will be forfeited. In fiscal 2016, we granted performance-based restricted stock awards that vest on March 31, 2019 if we achieve a specified level of annual earnings per diluted share in any of fiscal 2016, 2017 or 2018. Should the annual earnings per diluted share criteria not be met in any of the three specified fiscal years, the restricted stock awards will be forfeited on March 31, 2019. In fiscal 2017, we granted performance-based restricted stock awards with two-thirds vesting on March 31, 2019, and one-third vesting on March 31, 2020. The number of shares vesting depends on whether the cumulative diluted earnings per share for fiscal 2017 and fiscal 2018 meet the threshold, target, or maximum levels of performance. If performance goals are not achieved, the restricted stock will be forfeited. In fiscal 2018, we granted performance stock units with one-half vesting on March 31, 2019, and one-half vesting on March 31, 2020. The number of units that will vest depends on whether the diluted earnings per share for fiscal 2018 meet the established threshold, target, or maximum level of performance. If diluted earnings per share for fiscal 2018 does not exceed the threshold level of performance, all of the performance stock units will be forfeited. If diluted earnings per share for fiscal 2018 is between the threshold and target level of performance, any performance stock units that are determined not to be earned will be forfeited. Service-based restricted stock awards and restricted stock units typically are granted under one of four vesting periods: (a) one-third of the shares would vest on each of the first three anniversaries subsequent to the date of the grant; (b) the full award would vest at the end of a 5-year service period subsequent to the date of grant; (c) the full award would vest at the end of a 2-year service period subsequent to the date of grant; or (d) for our Directors, all restricted stock awards are issued to vest on January 2 nd Under the 2017 Plan, all dividends paid with respect to shares subject to the non-vested portion of a restricted stock award are subject to the same restrictions and risk of forfeiture as the shares of restricted stock to which such dividends relate. Recipients of restricted stock units and performance stock units will be entitled to receive dividend equivalents, based on dividends actually declared and paid, on the restricted stock units and performance stock units, and such dividend equivalents will be subject to the same restrictions and risk of forfeiture as the restricted stock units and performance stock units. For awards granted under the 2000 Plan, all shares of non-vested service-based restricted stock provide non-forfeitable rights to all dividends declared by the Company, and dividends on non-vested performance-based restricted stock 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 stock options have been granted since fiscal 2008. All outstanding options had vested as of the end of fiscal 2011; therefore, no unrecognized compensation expense remains. The following table summarizes information regarding options exercised: (In thousands) 2018 2017 2016 Total intrinsic value (1) $ 0 $ 127 $ 0 Total cash received $ 0 $ 54 $ 0 Associated excess income tax benefits recorded $ 0 $ 0 $ 0 (1) Defined as the difference between the market value at exercise and the grant price of stock options exercised. Restricted Stock The following table summarizes transactions for our restricted stock awards pursuant to our stock-based compensation plans: Number of Shares Weighted- Average Grant Date Fair Value Restricted stock at February 3, 2018 915,925 $ 23.62 Granted 10,998 32.74 Vested (49,992 ) 26.61 Forfeited (51,650 ) 17.65 Restricted stock at February 2, 2019 825,281 $ 23.94 The total fair value at grant date of restricted stock awards that vested during fiscal 2018, 2017 and 2016 was $1.3 million, $3.5 million and $1.4 million, respectively. The weighted-average grant date fair value of stock awards granted during fiscal 2017 and fiscal 2016 was $24.09 and $24.98, respectively. The following table summarizes transactions for our restricted stock units and performance stock units pursuant to our stock-based compensation plans: Number of Shares Weighted- Average Grant Date Fair Value Restricted stock units and performance stock units at February 3, 2018 4,000 $ 19.55 Granted 200,000 25.05 Vested (1,333 ) 19.55 Forfeited 0 0.00 Restricted stock units and performance stock units at February 2, 2019 202,667 $ 24.98 The following table summarizes information regarding stock-based compensation expense recognized for restricted stock awards, restricted stock units and performance stock units: (In thousands) 2018 2017 2016 Stock-based compensation expense before the recognized income tax benefit $ 9,591 $ 5,041 $ 3,507 Income tax benefit $ 2,328 $ 2,490 $ 1,322 The $9.6 million of expense recognized in fiscal 2018 included a $2.2 million cumulative catch-up of expense recorded in the third quarter of fiscal 2018. This cumulative catch-up expense was related to performance-based restricted stock awards, which management had previously determined were not probable to vest prior to their expiration, but given our financial performance in fiscal 2018, in the third quarter of fiscal 2018, such awards were deemed by management as probable to vest. As of February 2, 2019, there was approximately $4.3 million of unrecognized compensation expense remaining related to both our performance-based and service-based restricted stock awards, restricted stock units and performance stock units. The cost is expected to be recognized over a weighted average period of approximately 0.4 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 Our cash-settled stock appreciation rights (“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 vested and became fully exercisable on each of the first three anniversaries of the date of the grant and were assigned a five-year term from the date of grant, after which any unexercised SARs would expire. Each SAR entitled 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 over the exercise price of $24.26. During the second quarter of fiscal 2018, all remaining SARs granted during the first quarter of fiscal 2015 were exercised. The following table summarizes SARs activity: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Outstanding at February 3, 2018 103,475 $ 24.26 Exercised (103,475 ) 24.26 Outstanding at February 2, 2019 0 $ 0.00 0.0 The fair value of liability awards was remeasured, using a trinomial lattice model at each reporting period until the date of settlement. Increases or decreases in stock-based compensation expense were recognized over the vesting period, or immediately for vested awards. As of February 2, 2019, all outstanding SARs were exercised. The fair value was estimated using a trinomial lattice model with the following assumptions: February 3, 2018 January 28, 2017 Risk free interest rate yield curve 1.40% - 2.58 % 0.49% - 1.94 % Expected dividend yield 1.3 % 1.1 % Expected volatility 39.21 % 35.51 % Maximum life 2.1 Years 3.1 Years Exercise multiple 1.34 1.34 Maximum payout $ 10.00 $ 10.00 Employee exit rate 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, with the assumption that quarterly dividends would continue at that rate. Expected volatility was based on the historical volatility of our common stock. The exercise multiple and employee exit rate were based on historical option data. The following table summarizes information regarding stock-based compensation recognized for SARs: (In thousands) 2018 2017 2016 Stock-based compensation before the recognized income tax effect $ 540 $ (61 ) $ 276 Income tax effect $ 131 $ (30 ) $ 104 As of February 2, 2019, no unrecognized compensation expense remained related to the SARs. |
Business Risk
Business Risk | 12 Months Ended |
Feb. 02, 2019 | |
Risks And Uncertainties [Abstract] | |
Business Risk | Note 12 – Business Risk We purchase merchandise from approximately 160 footwear vendors. In fiscal 2018, two branded suppliers, Nike, Inc. and Skechers USA, Inc., collectively accounted for approximately 43% of our net sales. Nike, Inc. accounted for approximately 32% . |
Litigation Matters
Litigation Matters | 12 Months Ended |
Feb. 02, 2019 | |
Loss Contingency Information About Litigation Matters [Abstract] | |
Litigation Matters | Note 13 – Litigation Matters The accounting standard related to loss contingencies provides guidance regarding to our disclosure and recognition of loss contingencies, including pending claims, lawsuits, disputes with third parties, investigations and other actions that are incidental to the operation of our business. The guidance utilizes the following defined terms to describe the likelihood of a future loss: (1) probable – the future event or events are likely to occur, (2) remote – the chance of the future event or events is slight and (3) reasonably possible – the chance of the future event or events occurring is more than remote but less than likely. The guidance also contains certain requirements with respect to how we accrue for and disclose information concerning our loss contingencies. We accrue for a loss contingency when we conclude that the likelihood of a loss is probable and the amount of the loss can be reasonably estimated. When the reasonable estimate of the loss is within a range of amounts, and no amount in the range constitutes a better estimate than any other amount, we accrue for the amount at the low end of the range. We adjust our accruals from time to time as we receive additional information, but the loss we incur may be significantly greater than or less than the amount we have accrued. We disclose loss contingencies if there is at least a reasonable possibility that a loss has been incurred. No accrual or disclosure is required for losses that are remote. 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 |
Feb. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results | Note 14 – 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 2018 and 2017 include results for 13 weeks, except for the fourth quarter of 2017, which includes results for 14 weeks. (In thousands, except per share data) Fiscal 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 257,445 $ 268,366 $ 269,181 $ 234,658 Gross profit 77,327 83,781 81,218 66,666 Operating income 17,316 14,931 16,016 1,497 Net income 12,955 11,775 12,046 1,359 Net income per share – Basic (1) $ 0.83 $ 0.77 $ 0.80 $ 0.09 Net income per share – Diluted (1) $ 0.83 $ 0.76 $ 0.76 $ 0.09 Fiscal 2017 First Quarter Second Quarter Third Quarter Fourth Quarter (2)(3) Net sales $ 253,389 $ 235,064 $ 287,469 $ 243,232 Gross profit 72,156 68,227 85,667 70,219 Operating income 13,227 6,424 17,880 170 Net income (loss) 8,231 3,896 10,697 (3,891 ) Net income (loss) per share – Basic (1) $ 0.48 $ 0.24 $ 0.66 $ (0.24 ) Net income (loss) per share – Diluted (1) $ 0.48 $ 0.24 $ 0.66 $ (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. (2) Our gross profit, operating income and net loss for the fourth quarter of fiscal 2017 were impacted by the following items recorded in such quarter: gain on insurance proceeds related to hurricane affected stores of $3.3 million, or $0.13 per diluted share, net of tax, non-cash impairment charges for underperforming stores of $3.4 million, or $0.13 per diluted share, net of tax, additional stock-based compensation expense resulting from the enactment of the Tax Act and its impact on the anticipated vesting of outstanding performance-based restricted stock of $1.9 million, or $0.08 per diluted share, net of tax, and additional income tax expense resulting from the enactment of the Tax Act and our remeasurement of deferred tax assets and liabilities of $4.4 million, or $0.27 per diluted share. (3) The fourth quarter of fiscal 2017 consisted of 14 weeks compared with 13 weeks in the fourth quarter of fiscal 2018. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Feb. 02, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 15 – Subsequent Events On March 21, 2019, the Board of Directors approved the payment of a cash dividend to our shareholders in the first quarter of fiscal 2019. The quarterly cash dividend of $0.08 per share will be paid on April 22, 2019 to shareholders of record as of the close of business on April 8, 2019. 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 |
Feb. 02, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | 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 January 28, 2017 $ 178 $ 102,826 $ 102,802 $ 202 Year ended February 3, 2018 $ 202 $ 102,701 $ 102,672 $ 231 Year ended February 2, 2019 $ 706 (1) $ 110,314 $ 110,420 $ 600 (1) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 02, 2019 | |
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 2018, 2017 and 2016 relate to the fiscal years ended February 2, 2019, February 3, 2018 and January 28, 2017, respectively. Fiscal year 2017 consisted of 53 weeks and the other fiscal years 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 $67.0 million at February 2, 2019 and $48.3 million at February 3, 2018. Credit and debit card receivables and receivables due from a third party totaling $8.2 million and $5.4 million were included in cash equivalents at February 2, 2019 and February 3, 2018, 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 February 2, 2019, all invested cash was held in money market mutual funds. There was no invested cash as of February 3, 2018. 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-Financial Assets Our financial assets as of February 2, 2019 and February 3, 2018 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 sheets as of February 2, 2019 and February 3, 2018 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 these periods. 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 net realizable value using the first-in, first-out (FIFO) method. For determining net 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 the lower of cost or net realizable value 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 includes 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. Cost 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 to twenty-five years. Expenditures for maintenance and repairs are charged to expense as incurred. Expenditures 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, undiscounted future cash flows for a store are determined to be less than the carrying value of the store’s assets, an impairment loss is recorded 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. If actual operating results or market conditions differ from those anticipated, the carrying value of certain of our assets may prove unrecoverable and we may incur additional impairment charges in the future. There were no impairments of long-lived assets recorded in fiscal 2018. We recorded non-cash impairment charges of approximately $5.1 million and $4.5 million in fiscal years 2017 and 2016, respectively. |
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 to protect 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 February 2, 2019 and February 3, 2018, our self-insurance reserves totaled $3.4 million and $3.6 million, respectively. We record self-insurance expense 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 Substantially all of our revenue is for a single performance obligation and is recognized when control passes to customers. We consider control to have transferred when we have a present right to payment, the customer has title to the product, physical possession of the product has been transferred and the risks and rewards of the product that we retain are minimal. For our brick-and-mortar stores, we satisfy our performance obligation and control is transferred at the point of sale when the customer takes possession of the products. This also includes the “buy online, pick up in store” scenario and includes Shoes 2U if the customer chooses the option of picking up their goods in-store. For sales made through our e-commerce site or mobile app in which the customer chooses home delivery, we transfer control and recognize revenue when the product is shipped from our stores or distribution center. This also includes Shoes 2U if the customer chooses the option of having goods delivered to their home. The redemption of loyalty points under our Shoe Perks loyalty rewards program and redemptions of gift cards may be part of any transaction. These situations represent separate performance obligations that are embedded in the contract and are more fully described below. 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. See Note 4 – “Revenue” for additional discussion of our revenue recognition policies as well as additional disclosures on revenue from contracts with customers. |
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, supplies and rent 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 $41.2 million, $40.1 million and $42.9 million in fiscal years 2018, 2017 and 2016, respectively. |
Stock-Based Compensation | Stock-Based Compensation We recognize compensation expense for stock-based awards based on a fair value based method. Stock-based awards may include stock options, stock appreciation rights, restricted stock, stock units and other stock-based 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 account for forfeitures as they occur in calculating stock-based compensation expense for the period. For performance-based stock awards, we estimate the probability of vesting based on the likelihood that the awards will meet their performance goals. |
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 February 2, 2019 February 3, 2018 January 28, 2017 (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 $ 38,135 $ 18,933 $ 23,517 Amount allocated to participating securities (152 ) (250 ) (487 ) Net income available for basic common shares and basic earnings per share $ 37,983 15,111 $ 2.51 $ 18,683 16,220 $ 1.15 $ 23,030 18,017 $ 1.28 Diluted Earnings per Share: Net income $ 38,135 $ 18,933 $ 23,517 Amount allocated to participating securities (152 ) (250 ) (487 ) Adjustment for dilutive potential common shares 4 388 0 7 0 5 Net income available for diluted common shares and diluted earnings per share $ 37,987 15,499 $ 2.45 $ 18,683 16,227 $ 1.15 $ 23,030 18,022 $ 1.28 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 restricted 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 because 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. Subsequently, the FASB also issued accounting standards updates which clarify this guidance. The underlying principle of this comprehensive model is that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the payment to which the company expects to be entitled in exchange for those goods or services. We adopted the new revenue guidance on February 4, 2018, using a modified retrospective transition approach. We recorded an increase in retained earnings of $620,000 as a cumulative effect of the adoption based on our evaluation of incomplete contracts as of the adoption date. This increase to retained earnings included pre-tax adjustments in connection with e-commerce revenue of $171,000 and recognition of breakage revenue for unredeemed gift cards of $649,000, partially offset by a $200,000 adjustment related to the tax impact of the cumulative effect adjustments. The cumulative effect e-commerce adjustment is related to recognizing revenue when products are shipped from our stores or distribution center under the new guidance rather than recognizing revenue when the shipments were delivered under the previous revenue guidance. The cumulative effect gift card breakage adjustment is related to the unredeemed portion of our gift cards, which are now estimated using historical breakage percentages and recognized based on expected gift card usage, rather than waiting until the likelihood of redemption becomes remote. In addition to these changes, we also now record a right of return asset in inventory for the estimated cost of the inventory expected to be returned. Under the previous revenue guidance, we recorded a net returns reserve in accrued and other liabilities. The adoption of this guidance did not have a material impact on our consolidated financial statements. See Note 4 – “Revenue” for additional discussion of this adoption as well as additional disclosures on revenue from contracts with customers. 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 was updated in July 2018. This update, among other things, added a transition option allowing entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than the earliest period presented. This guidance became effective for us on February 3, 2019 and will include interim periods in fiscal 2019. We have elected the optional transition method to apply the standard as of the effective date and therefore, we will not apply the standard to the comparative periods presented in our financial statements. . Therefore, the adoption of standard will have a material impact on our consolidated balance sheet. While we are continuing to assess all potential impacts of the standard, we expect to record lease liabilities of approximately $240 million to $260 million based on the present value of the remaining minimum rental payments using incremental borrowing rates as of the effective date. In May 2017, the FASB issued guidance which clarifies what constitutes a modification of a share-based payment award. We adopted the provisions of this guidance on February 4, 2018. The adoption of this guidance did not have a material impact on our consolidated financial statements. In March 2018, the FASB issued guidance on the income tax accounting implications of the U.S. Tax Cuts and Jobs Act (the “Tax Act”), to address the application of guidance in situations when a company does not have the necessary information available, prepared, or analyzed to complete the accounting for certain income tax effects of the Tax Act. The guidance provides a one-year measurement period to assess the Tax Act, which began in the reporting period of the enactment date of the Tax Act. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, we initially made reasonable estimates of the effects and recorded provisional amounts in our financial statements. We recorded $4.4 million of additional income tax expense in the fourth quarter of fiscal 2017 and an income tax benefit of $0.1 million during fiscal 2018 related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they were expected to reverse in the future. As of the end of fiscal 2018, we have filed our fiscal 2017 federal income tax return and have completed our assessment of the final impact of the Tax Act. In August 2018, the FASB issued guidance that addressed the diversity in practice surrounding the accounting for costs incurred to implement a cloud computing hosting arrangement that is a service contract by establishing a model for capitalizing or expensing such costs, depending on their nature and the stage of the implementation project during which they are incurred. Any capitalized costs are to be amortized over the reasonably certain term of the hosting arrangement and presented in the same line as the service arrangement's fees within the consolidated statements of operations. This guidance also requires enhanced qualitative and quantitative disclosures surrounding hosting arrangements that are service contracts. We are presently in the process of implementing a cloud computing hosting arrangement that is a service contract in connection with our Customer Relationship Management (“CRM”) program. The costs incurred during the application-development stage of our CRM program are being capitalized in accordance with this new guidance and amortized over the term of the contract with our third-party service provider, and because our CRM program is a significant component of our strategic plan, these costs have a material impact on our consolidated financial statements and related disclosures. We early adopted this guidance on a prospective basis on November 4, 2018. In August 2018, the FASB issued guidance which modifies the disclosure requirements on fair value measurements, including the consideration of costs and benefits. This guidance is effective for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. We are in the process of evaluating the impact of this guidance on our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Accounting Policies [Abstract] | |
Schedule of the Computation of Basic and Diluted Earnings 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 February 2, 2019 February 3, 2018 January 28, 2017 (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 $ 38,135 $ 18,933 $ 23,517 Amount allocated to participating securities (152 ) (250 ) (487 ) Net income available for basic common shares and basic earnings per share $ 37,983 15,111 $ 2.51 $ 18,683 16,220 $ 1.15 $ 23,030 18,017 $ 1.28 Diluted Earnings per Share: Net income $ 38,135 $ 18,933 $ 23,517 Amount allocated to participating securities (152 ) (250 ) (487 ) Adjustment for dilutive potential common shares 4 388 0 7 0 5 Net income available for diluted common shares and diluted earnings per share $ 37,987 15,499 $ 2.45 $ 18,683 16,227 $ 1.15 $ 23,030 18,022 $ 1.28 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Fair Value Disclosures [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 February 2, 2019 and February 3, 2018. 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 February 2, 2019: Cash equivalents – money market mutual fund $ 68,500 $ - $ - $ 68,500 As of February 3, 2018: Cash equivalents – money market mutual fund $ - $ - $ - $ - |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Impact of Adoption New Guidance on Condensed Consolidated Balance Sheet | The impact of the new guidance on our consolidated balance sheet as of February 2, 2019 is below. In the table, the adjustments for merchandise inventories relate to: (1) the classification of the right of return assets associated with product returns previously recorded net of the refund liability in accrued and other liabilities, and (2) the cost basis of inventory for product shipped to customers not yet received under the previous revenue guidance. The adjustment for deferred income taxes relates to the tax effect of the cumulative effect adjustments. The adjustments to accrued and other liabilities relate to: (1) the classification of the right of return assets from accrued and other liabilities to merchandise inventories, (2) recognition of deferred revenue for product shipped to customers not yet received, and (3) the adjustment to contract liabilities for unredeemed gift cards and award certificates. February 2, 2019 (In thousands) As Reported Adjustments As Adjusted Merchandise inventories $257,539 $(253) $257,286 Deferred income taxes 9,622 100 9,722 Accrued and other liabilities (22,069) (363) (22,432) |
Schedule of Impact of Adoption New Guidance on Consolidated Statement of Income | The impact of the new guidance on our consolidated statement of income for the fiscal year ended February 2, 2019 is below. In the table, the adjustments to net sales relate to: (1) deferred revenue for product shipped to customers not yet received, (2) breakage revenue for unredeemed gift cards, and (3) adjustments associated with our rewards program. The adjustment to cost of sales relates to the cost associated with product shipped to customers not yet received under the previous revenue guidance. The impact of the new guidance on income tax expense was immaterial for the fiscal year ended February 2, 2019. February 2, 2019 (In thousands) As Reported Adjustments As Adjusted Net sales $1,029,650 $47 $1,029,697 Cost of sales (including buying, distribution and occupancy costs) 720,658 (73) 720,585 |
Schedule of Revenue Disaggregation by Product Category | Revenue is disaggregated by product category below. Net sales and percentage of net sales for the fiscal years ended February 2, 2019, February 3, 2018 and January 28, 2017 were as follows: (In thousands) February 2, 2019 February 3, 2018 January 28, 2017 Non-Athletics: Women's $ 250,320 24 % $ 244,945 24 % $ 256,271 26 % Men's 144,628 14 141,295 14 137,729 14 Children's 51,963 5 50,255 5 51,496 5 Total 446,911 43 436,495 43 445,496 45 Athletics: Women's 179,411 18 177,627 17 165,179 16 Men's 215,796 21 219,224 22 217,969 22 Children's 138,686 14 138,074 14 127,858 13 Total 533,893 53 534,925 53 511,006 51 Accessories 45,100 4 43,606 4 41,259 4 Other 3,746 - 4,128 - 3,341 - Total $ 1,029,650 100 % $ 1,019,154 100 % $ 1,001,102 100 % |
Property and Equipment - Net (T
Property and Equipment - Net (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | The following is a summary of property and equipment: (In thousands) February 2, 2019 February 3, 2018 Furniture, fixtures and equipment $ 156,596 $ 154,844 Leasehold improvements 110,824 111,967 Total 267,420 266,811 Less accumulated depreciation and amortization (196,815 ) (180,535 ) Property and equipment – net $ 70,605 $ 86,276 |
Accrued and Other Liabilities (
Accrued and Other Liabilities (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued and Other Liabilities | Accrued and other liabilities consisted of the following: (In thousands) February 2, 2019 February 3, 2018 Employee compensation and benefits $ 9,771 $ 3,231 Self-insurance reserves 3,447 3,565 Gift cards 1,558 2,382 Sales and use tax 2,131 1,797 Other 5,162 4,070 Total accrued and other liabilities $ 22,069 $ 15,045 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Leases [Abstract] | |
Schedule of Rental Expense Under Operating Leases | Rental expense for our operating leases consisted of: (In thousands) 2018 2017 2016 Rentals for real property $ 61,127 $ 66,835 $ 65,900 Contingent rent 46 70 92 Equipment rentals 55 41 62 Total $ 61,228 $ 66,946 $ 66,054 |
Schedule of Future Minimum Payments Under Operating Leases | Future minimum lease payments at February 2, 2019 were as follows: (In thousands) Operating Leases 2019 $ 60,807 2020 51,937 2021 50,687 2022 41,536 2023 34,035 Thereafter to 2031 56,437 Total $ 295,439 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision | The provision for income taxes consisted of: (In thousands) 2018 2017 2016 Current: Federal $ 11,468 $ 14,579 $ 13,366 State 1,693 2,241 1,997 Puerto Rico 700 242 250 Total current 13,861 17,062 15,613 Deferred: Federal (894 ) 2,383 (153 ) State (745 ) (965 ) (1,228 ) Puerto Rico 643 2,500 (1,494 ) Total deferred (996 ) 3,918 (2,875 ) Valuation allowance (643 ) (2,500 ) 1,494 Total provision $ 12,222 $ 18,480 $ 14,232 |
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 2018 2017 2016 U.S. Federal statutory tax rate 21.0 % 33.7 % 35.0 % State and local income taxes, net of federal tax benefit 3.0 3.0 2.1 Puerto Rico 4.2 0.7 0.2 Valuation allowance (1.3 ) (6.7 ) 4.0 Tax impact of foreign losses (2.7 ) 6.3 (3.6 ) Remeasurement of deferred tax assets and liabilities due to the Tax Act 0.0 11.6 0.0 Other 0.1 0.8 0.0 Effective income tax rate 24.3 % 49.4 % 37.7 % |
Schedule of Deferred Tax Asset/Liability | Deferred income taxes are the result of temporary differences in the recognition of revenue and expense for tax and financial reporting purposes. The sources of these differences and the tax effect of each are as follows: (In thousands) February 2, 2019 February 3, 2018 Deferred tax assets: Accrued rent $ 2,051 $ 2,464 Accrued compensation 7,843 5,752 Accrued employee benefits 129 349 Inventory 787 699 Self-insurance reserves 510 518 Lease incentives 5,429 7,145 Net operating loss carry forward 563 1,218 Other 288 488 Total deferred tax assets 17,600 18,633 Valuation allowance (574 ) (1,217 ) Total deferred tax assets – net of valuation allowance 17,026 17,416 Deferred tax liabilities: Property and equipment 6,484 8,588 Capitalized costs 636 646 Other 284 0 Total deferred tax liabilities 7,404 9,234 Long-term deferred income taxes, net $ 9,622 $ 8,182 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Compensation And Retirement Disclosure [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) 2018 2017 2016 Stock-based compensation expense before the recognized income tax benefit (1) $ 31 $ 36 $ 39 Income tax benefit $ 8 $ 18 $ 15 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Schedule of Stock Options Exercised | The following table summarizes information regarding options exercised: (In thousands) 2018 2017 2016 Total intrinsic value (1) $ 0 $ 127 $ 0 Total cash received $ 0 $ 54 $ 0 Associated excess income tax benefits recorded $ 0 $ 0 $ 0 (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 transactions for our restricted stock awards pursuant to our stock-based compensation plans: Number of Shares Weighted- Average Grant Date Fair Value Restricted stock at February 3, 2018 915,925 $ 23.62 Granted 10,998 32.74 Vested (49,992 ) 26.61 Forfeited (51,650 ) 17.65 Restricted stock at February 2, 2019 825,281 $ 23.94 |
Summary of SARs Activity | The following table summarizes SARs activity: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Outstanding at February 3, 2018 103,475 $ 24.26 Exercised (103,475 ) 24.26 Outstanding at February 2, 2019 0 $ 0.00 0.0 |
Schedule of SARs Assumptions | The fair value was estimated using a trinomial lattice model with the following assumptions: February 3, 2018 January 28, 2017 Risk free interest rate yield curve 1.40% - 2.58 % 0.49% - 1.94 % Expected dividend yield 1.3 % 1.1 % Expected volatility 39.21 % 35.51 % Maximum life 2.1 Years 3.1 Years Exercise multiple 1.34 1.34 Maximum payout $ 10.00 $ 10.00 Employee exit rate 2.2% - 9.0 % 2.2% - 9.0 % |
Restricted Stock Units and Performance Stock Units [Member] | |
Summary of Stock Compensation Expense | The following table summarizes information regarding stock-based compensation expense recognized for restricted stock awards, restricted stock units and performance stock units: (In thousands) 2018 2017 2016 Stock-based compensation expense before the recognized income tax benefit $ 9,591 $ 5,041 $ 3,507 Income tax benefit $ 2,328 $ 2,490 $ 1,322 |
Stock Appreciation Rights (SARs) [Member] | |
Summary of Stock Compensation Expense | The following table summarizes information regarding stock-based compensation recognized for SARs: (In thousands) 2018 2017 2016 Stock-based compensation before the recognized income tax effect $ 540 $ (61 ) $ 276 Income tax effect $ 131 $ (30 ) $ 104 |
Restricted Stock Units and Performance Stock Units [Member] | |
Summary of Restricted Stock Awards Transactions | The following table summarizes transactions for our restricted stock units and performance stock units pursuant to our stock-based compensation plans: Number of Shares Weighted- Average Grant Date Fair Value Restricted stock units and performance stock units at February 3, 2018 4,000 $ 19.55 Granted 200,000 25.05 Vested (1,333 ) 19.55 Forfeited 0 0.00 Restricted stock units and performance stock units at February 2, 2019 202,667 $ 24.98 |
Quarterly Results (Tables)
Quarterly Results (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results | (In thousands, except per share data) Fiscal 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 257,445 $ 268,366 $ 269,181 $ 234,658 Gross profit 77,327 83,781 81,218 66,666 Operating income 17,316 14,931 16,016 1,497 Net income 12,955 11,775 12,046 1,359 Net income per share – Basic (1) $ 0.83 $ 0.77 $ 0.80 $ 0.09 Net income per share – Diluted (1) $ 0.83 $ 0.76 $ 0.76 $ 0.09 Fiscal 2017 First Quarter Second Quarter Third Quarter Fourth Quarter (2)(3) Net sales $ 253,389 $ 235,064 $ 287,469 $ 243,232 Gross profit 72,156 68,227 85,667 70,219 Operating income 13,227 6,424 17,880 170 Net income (loss) 8,231 3,896 10,697 (3,891 ) Net income (loss) per share – Basic (1) $ 0.48 $ 0.24 $ 0.66 $ (0.24 ) Net income (loss) per share – Diluted (1) $ 0.48 $ 0.24 $ 0.66 $ (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. (2) Our gross profit, operating income and net loss for the fourth quarter of fiscal 2017 were impacted by the following items recorded in such quarter: gain on insurance proceeds related to hurricane affected stores of $3.3 million, or $0.13 per diluted share, net of tax, non-cash impairment charges for underperforming stores of $3.4 million, or $0.13 per diluted share, net of tax, additional stock-based compensation expense resulting from the enactment of the Tax Act and its impact on the anticipated vesting of outstanding performance-based restricted stock of $1.9 million, or $0.08 per diluted share, net of tax, and additional income tax expense resulting from the enactment of the Tax Act and our remeasurement of deferred tax assets and liabilities of $4.4 million, or $0.27 per diluted share. (3) The fourth quarter of fiscal 2017 consisted of 14 weeks compared with 13 weeks in the fourth quarter of fiscal 2018. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Feb. 03, 2018 | Jan. 28, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | May 04, 2019 | Jan. 30, 2016 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Cash and cash equivalents | $ 48,254,000 | $ 62,944,000 | $ 67,021,000 | $ 48,254,000 | $ 62,944,000 | $ 68,814,000 | |
Credit and debit card receivables | 5,400,000 | 8,200,000 | 5,400,000 | ||||
Long-lived assets, impairment charges | 0 | 5,100,000 | 4,500,000 | ||||
Self-insurance reserves | 3,565,000 | 3,447,000 | 3,565,000 | ||||
Advertising expenses | 41,200,000 | 40,100,000 | 42,900,000 | ||||
Cumulative effect on retained earnings from adoption of new Accounting Standards | 620,000 | ||||||
Increase in retained earnings from pre-tax adjustments in connection with E-commerce revenues | 171,000 | ||||||
Revenue recognized breakage for unredeemed gift cards | 649,000 | ||||||
Tax impact of adjustments made to retained earnings | 200,000 | ||||||
Income tax expense | $ 4,400,000 | $ 4,400,000 | 12,222,000 | $ 18,480,000 | $ 14,232,000 | ||
Impact on income tax benefit | $ 100,000 | ||||||
Scenario, Forecast [Member] | Maximum [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Operating lease liabilities | $ 260,000,000 | ||||||
Scenario, Forecast [Member] | Minimum [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Operating lease liabilities | $ 240,000,000 |
Summary of Significant Accoun_5
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 | |||||||||||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | [1],[2] | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | ||||||||
Basic Earnings per Share: | |||||||||||||||||||
Net income | $ 1,359 | $ 12,046 | $ 11,775 | $ 12,955 | $ (3,891) | $ 10,697 | $ 3,896 | $ 8,231 | $ 38,135 | $ 18,933 | $ 23,517 | ||||||||
Amount allocated to participating securities | (152) | (250) | (487) | ||||||||||||||||
Net income available for basic common shares and basic earnings per share | $ 37,983 | $ 18,683 | $ 23,030 | ||||||||||||||||
Net income available for basic common shares and basic earnings per share, Shares | 15,111 | 16,220 | 18,017 | ||||||||||||||||
Net income per share - Basic | $ 0.09 | [3] | $ 0.80 | [3] | $ 0.77 | [3] | $ 0.83 | [3] | $ (0.24) | [3] | $ 0.66 | [3] | $ 0.24 | [3] | $ 0.48 | [3] | $ 2.51 | $ 1.15 | $ 1.28 |
Diluted Earnings per Share: | |||||||||||||||||||
Net income | $ 1,359 | $ 12,046 | $ 11,775 | $ 12,955 | $ (3,891) | $ 10,697 | $ 3,896 | $ 8,231 | $ 38,135 | $ 18,933 | $ 23,517 | ||||||||
Amount allocated to participating securities | (152) | (250) | (487) | ||||||||||||||||
Adjustment for dilutive potential common shares | $ 4 | $ 0 | $ 0 | ||||||||||||||||
Adjustment for dilutive potential common shares, Shares | 388 | 7 | 5 | ||||||||||||||||
Net income available for diluted common shares and diluted earnings per share | $ 37,987 | $ 18,683 | $ 23,030 | ||||||||||||||||
Net income available for diluted common shares and diluted earnings per share, Shares | 15,499 | 16,227 | 18,022 | ||||||||||||||||
Net income per share - Diluted | $ 0.09 | [3] | $ 0.76 | [3] | $ 0.76 | [3] | $ 0.83 | [3] | $ (0.24) | [3] | $ 0.66 | [3] | $ 0.24 | [3] | $ 0.48 | [3] | $ 2.45 | $ 1.15 | $ 1.28 |
[1] | Our gross profit, operating income and net loss for the fourth quarter of fiscal 2017 were impacted by the following items recorded in such quarter: gain on insurance proceeds related to hurricane affected stores of $3.3 million, or $0.13 per diluted share, net of tax, non-cash impairment charges for underperforming stores of $3.4 million, or $0.13 per diluted share, net of tax, additional stock-based compensation expense resulting from the enactment of the Tax Act and its impact on the anticipated vesting of outstanding performance-based restricted stock of $1.9 million, or $0.08 per diluted share, net of tax, and additional income tax expense resulting from the enactment of the Tax Act and our remeasurement of deferred tax assets and liabilities of $4.4 million, or $0.27 per diluted share. | ||||||||||||||||||
[2] | The fourth quarter of fiscal 2017 consisted of 14 weeks compared with 13 weeks in the fourth quarter of fiscal 2018. | ||||||||||||||||||
[3] | 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 (Schedu
Fair Value Measurements (Schedule of Assets Measure at Fair Value on Recurring Basis) (Details) $ in Thousands | Feb. 02, 2019USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash equivalents – money market mutual fund | $ 68,500 |
Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash equivalents – money market mutual fund | $ 68,500 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Fair Value Disclosures [Abstract] | |||
Long-lived assets, impairment charges | $ 0 | $ 5,100,000 | $ 4,500,000 |
Remaining unamortized basis | $ 4,700,000 | $ 4,700,000 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) | Feb. 02, 2019USD ($) |
Revenue From Contract With Customer [Abstract] | |
Refund liabilities | $ 600,000 |
Return assets | 410,000 |
Contract liabilities associated with unredeemed gift cards | 1,600,000 |
Contract liabilities associated with loyalty rewards | $ 245,000 |
Revenue (Schedule of Impact of
Revenue (Schedule of Impact of Adoption New Guidance on Condensed Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Merchandise inventories | $ 257,539 | $ 260,500 |
Deferred income taxes | 9,622 | 8,182 |
Accrued and other liabilities | (22,069) | $ (15,045) |
As Reported [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Merchandise inventories | 257,539 | |
Deferred income taxes | 9,622 | |
Accrued and other liabilities | (22,069) | |
Adjustments [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Merchandise inventories | (253) | |
Deferred income taxes | 100 | |
Accrued and other liabilities | (363) | |
As Adjusted [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Merchandise inventories | 257,286 | |
Deferred income taxes | 9,722 | |
Accrued and other liabilities | $ (22,432) |
Revenue (Schedule of Impact o_2
Revenue (Schedule of Impact of Adoption New Guidance on Consolidated Statement of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Net sales | $ 1,029,650 | $ 1,019,154 | $ 1,001,102 |
Cost of sales (including buying, distribution and occupancy costs) | 720,658 | $ 722,885 | $ 711,867 |
As Reported [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Net sales | 1,029,650 | ||
Cost of sales (including buying, distribution and occupancy costs) | 720,658 | ||
Adjustments [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Net sales | 47 | ||
Cost of sales (including buying, distribution and occupancy costs) | (73) | ||
As Adjusted [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Net sales | 1,029,697 | ||
Cost of sales (including buying, distribution and occupancy costs) | $ 720,585 |
Revenue (Schedule of Revenue Di
Revenue (Schedule of Revenue Disaggregation by Product Category) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 100.00% | 100.00% | 100.00% |
Net sales | $ 1,029,650 | $ 1,019,154 | $ 1,001,102 |
Non-Athletics [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 43.00% | 43.00% | 45.00% |
Net sales | $ 446,911 | $ 436,495 | $ 445,496 |
Non-Athletics [Member] | Women' s [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 24.00% | 24.00% | 26.00% |
Net sales | $ 250,320 | $ 244,945 | $ 256,271 |
Non-Athletics [Member] | Men' s [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 14.00% | 14.00% | 14.00% |
Net sales | $ 144,628 | $ 141,295 | $ 137,729 |
Non-Athletics [Member] | Children' s [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 5.00% | 5.00% | 5.00% |
Net sales | $ 51,963 | $ 50,255 | $ 51,496 |
Athletics [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 53.00% | 53.00% | 51.00% |
Net sales | $ 533,893 | $ 534,925 | $ 511,006 |
Athletics [Member] | Women' s [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 18.00% | 17.00% | 16.00% |
Net sales | $ 179,411 | $ 177,627 | $ 165,179 |
Athletics [Member] | Men' s [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 21.00% | 22.00% | 22.00% |
Net sales | $ 215,796 | $ 219,224 | $ 217,969 |
Athletics [Member] | Children' s [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 14.00% | 14.00% | 13.00% |
Net sales | $ 138,686 | $ 138,074 | $ 127,858 |
Accessories [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 4.00% | 4.00% | 4.00% |
Net sales | $ 45,100 | $ 43,606 | $ 41,259 |
Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 3,746 | $ 4,128 | $ 3,341 |
Property and Equipment - Net (D
Property and Equipment - Net (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 267,420 | $ 266,811 |
Less accumulated depreciation and amortization | (196,815) | (180,535) |
Property and equipment – net | 70,605 | 86,276 |
Furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 156,596 | 154,844 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 110,824 | $ 111,967 |
Accrued and Other Liabilities_2
Accrued and Other Liabilities (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Payables And Accruals [Abstract] | ||
Employee compensation and benefits | $ 9,771 | $ 3,231 |
Self-insurance reserves | 3,447 | 3,565 |
Gift cards | 1,558 | 2,382 |
Sales and use tax | 2,131 | 1,797 |
Other | 5,162 | 4,070 |
Total accrued and other liabilities | $ 22,069 | $ 15,045 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 02, 2019 | Mar. 27, 2017 | |
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing amount | $ 50 | |
Outstanding letters of credit | $ 1.2 | |
Line of credit, available borrowing amount | $ 48.8 | |
Credit facility interest rate description | (1) the agent bank’s prime rate as defined in the Credit Agreement plus 1.0% with the prime rate defined as the greater of (a) the Federal Fund rate plus 0.50% or (b) the interest rate announced from time to time by the agent bank as its “prime rate” or (2) LIBOR plus 1.25% to 2.50%, depending on our achievement of certain performance criteria. | |
Line of credit facility, expiration date | Mar. 27, 2022 | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Commitment fee percentage rate | 0.20% | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Commitment fee percentage rate | 0.35% |
Leases (Schedule of Operating L
Leases (Schedule of Operating Lease Rental Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Leases [Abstract] | |||
Rentals for real property | $ 61,127 | $ 66,835 | $ 65,900 |
Contingent rent | 46 | 70 | 92 |
Equipment rentals | 55 | 41 | 62 |
Total rent expense | $ 61,228 | $ 66,946 | $ 66,054 |
Leases (Schedule of Operating_2
Leases (Schedule of Operating Lease Payments) (Details) $ in Thousands | Feb. 02, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 60,807 |
2020 | 51,937 |
2021 | 50,687 |
2022 | 41,536 |
2023 | 34,035 |
Thereafter to 2031 | 56,437 |
Total | $ 295,439 |
Income Taxes (Schedule of the P
Income Taxes (Schedule of the Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Feb. 03, 2018 | Jan. 28, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Current: | |||||
Federal | $ 11,468 | $ 14,579 | $ 13,366 | ||
State | 1,693 | 2,241 | 1,997 | ||
Puerto Rico | 700 | 242 | 250 | ||
Total current | 13,861 | 17,062 | 15,613 | ||
Deferred: | |||||
Federal | (894) | 2,383 | (153) | ||
State | (745) | (965) | (1,228) | ||
Puerto Rico | 643 | 2,500 | (1,494) | ||
Total deferred | (996) | 3,918 | (2,875) | ||
Valuation allowance | (643) | (2,500) | 1,494 | ||
Total provision | $ 4,400 | $ 4,400 | $ 12,222 | $ 18,480 | $ 14,232 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Tax benefit from options exercised and restricted stock vesting | $ 26,100 | $ 17,800 | $ 2,900 |
Federal employment related tax credits | 310,000 | 223,000 | $ 224,000 |
Valuation Allowance | 574,000 | 1,217,000 | |
Additional income tax expense (benefit) due to the Tax Act | $ (100,000) | $ 4,400,000 | |
Effective income tax rate | 21.00% | 33.70% | 35.00% |
Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 1,500,000 | ||
Foreign Tax Authority [Member] | Maximum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards expiration dates | Dec. 31, 2027 | ||
Foreign Tax Authority [Member] | Minimum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards expiration dates | Jan. 1, 2024 |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Statutory Income Tax Rate) (Details) | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal statutory tax rate | 21.00% | 33.70% | 35.00% |
State and local income taxes, net of federal tax benefit | 3.00% | 3.00% | 2.10% |
Puerto Rico | 4.20% | 0.70% | 0.20% |
Valuation allowance | (1.30%) | (6.70%) | 4.00% |
Tax impact of foreign losses | (2.70%) | 6.30% | (3.60%) |
Remeasurement of deferred tax assets and liabilities due to the Tax Act | 0.00% | 11.60% | 0.00% |
Other | 0.10% | 0.80% | 0.00% |
Effective income tax rate | 24.30% | 49.40% | 37.70% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Income Tax Assets/Liabilities) (Details) - USD ($) | Feb. 02, 2019 | Feb. 03, 2018 |
Deferred tax assets: | ||
Accrued rent | $ 2,051,000 | $ 2,464,000 |
Accrued compensation | 7,843,000 | 5,752,000 |
Accrued employee benefits | 129,000 | 349,000 |
Inventory | 787,000 | 699,000 |
Self-insurance reserves | 510,000 | 518,000 |
Lease incentives | 5,429,000 | 7,145,000 |
Net operating loss carry forward | 563,000 | 1,218,000 |
Other | 288,000 | 488,000 |
Total deferred tax assets | 17,600,000 | 18,633,000 |
Valuation allowance | (574,000) | (1,217,000) |
Total deferred tax assets – net of valuation allowance | 17,026,000 | 17,416,000 |
Deferred tax liabilities: | ||
Property and equipment | 6,484,000 | 8,588,000 |
Capitalized costs | 636,000 | 646,000 |
Other | 284,000 | 0 |
Total deferred tax liabilities | 7,404,000 | 9,234,000 |
Long-term deferred income taxes, net | $ 9,622,000 | $ 8,182,000 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2012 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Shares of unissued common stock reserved for future purchase | 1,000,000 | |||
Employee Stock Purchase Plan [Member] | ||||
Defined Benefit Plan Disclosure [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 | 7,000 | 10,000 | 10,000 | |
Proceeds from issuance of shares under plan | $ 177,000 | $ 205,000 | $ 223,000 | |
Shares of unissued common stock reserved for future purchase | 77,000 | |||
Compensation (income) expense | $ 154,000,000,000 | 1,800,000 | 1,500,000 | |
Total deferred compensation liability | $ 12,100,000 | 11,600,000 | ||
United States Postretirement Benefit Plan of US Entity, Defined Benefit [Member] | ||||
Defined Benefit 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 | $ 738,000 | 733,000 | 695,000 | |
Foreign Postretirement Benefit Plan, Defined Benefit [Member] | ||||
Defined Benefit 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 | $ 16,000 | $ 18,000 | $ 15,000 |
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 | |||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense before the recognized income tax benefit | [1] | $ 31 | $ 36 | $ 39 |
Income tax benefit | $ 8 | $ 18 | $ 15 | |
[1] | Amounts are representative of the 15% discount employees are provided for purchases under the Stock Purchase Plan. |
Employee Benefit Plans (Sched_2
Employee Benefit Plans (Schedule of Stock-based Compensation Expense) (Parenthetical) (Details) | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Discount rate employees are provided for purchases under the Stock Purchase Plan | 15.00% | 15.00% | 15.00% |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) | 3 Months Ended | 12 Months Ended | 120 Months Ended | ||||
Nov. 03, 2018USD ($) | Apr. 28, 2015$ / shares | Feb. 02, 2019USD ($)Vesting_period$ / sharesshares | Feb. 03, 2018USD ($)$ / shares | Jan. 28, 2017USD ($)$ / shares | Jan. 30, 2016$ / shares | Feb. 02, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares of unissued common stock reserved for future purchase | shares | 1,000,000 | 1,000,000 | |||||
Service Based Restricted Stock Awards and Restricted Stock Unit [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of vesting periods | Vesting_period | 4 | ||||||
Vesting description | Service-based restricted stock awards and restricted stock units typically are granted under one of four vesting periods: (a) one-third of the shares would vest on each of the first three anniversaries subsequent to the date of the grant; (b) the full award would vest at the end of a 5-year service period subsequent to the date of grant; (c) the full award would vest at the end of a 2-year service period subsequent to the date of grant; or (d) for our Directors, all restricted stock awards are issued to vest on January 2nd of the year following the year of the grant. | ||||||
Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Option granted | shares | 0 | ||||||
Unrecognized share-based compensation expense | $ 0 | $ 0 | |||||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized share-based compensation expense | 4,300,000 | 4,300,000 | |||||
Total fair value of vested stock | $ 1,300,000 | $ 3,500,000 | $ 1.4 | ||||
Granted | $ / shares | $ 32.74 | $ 24.09 | $ 24.98 | ||||
Cumulative share based compensation expense | $ 2,200,000 | ||||||
Stock-based compensation expense for restricted stock | $ 9,600,000 | ||||||
Unrecognized compensation cost, recognition period | 4 months 24 days | ||||||
Stock Appreciation Rights (SARs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Option expiration period | 10 years | ||||||
Unrecognized share-based compensation expense | $ 0 | $ 0 | |||||
Defined maximum gain | $ / shares | $ 10 | $ 10 | $ 10 | $ 10 | |||
Exercise price | $ / shares | $ 24.26 | ||||||
Vesting Period One [Member] | Service Based Restricted Stock Awards and Restricted Stock Unit [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting description | one-third of the shares would vest on each of the first three anniversaries subsequent to the date of the grant | ||||||
Vesting Period Two [Member] | Service Based Restricted Stock Awards and Restricted Stock Unit [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee service period | 5 years | ||||||
Vesting Period Three [Member] | Service Based Restricted Stock Awards and Restricted Stock Unit [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee service period | 2 years | ||||||
Vesting Period Four [Member] | Service Based Restricted Stock Awards and Restricted Stock Unit [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting date | --01-02 |
Stock Based Compensation (Sched
Stock Based Compensation (Schedule of Stock Options Exercised) (Details) - Equity Option [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total intrinsic value | [1] | $ 0 | $ 127 | $ 0 |
Total cash received | 0 | 54 | 0 | |
Associated excess income tax benefits recorded | $ 0 | $ 0 | $ 0 | |
[1] | Defined as the difference between the market value at exercise and the grant price of stock options exercised. |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Restricted Stock Awards Transactions) (Details) - $ / shares | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Restricted Stock [Member] | |||
Number of Shares | |||
Outstanding at February 3, 2018 | 915,925 | ||
Granted | 10,998 | ||
Vested | (49,992) | ||
Forfeited | (51,650) | ||
Outstanding at February 2, 2019 | 825,281 | 915,925 | |
Weighted-Average Grant Date Fair Value | |||
Outstanding at February 3, 2018 | $ 23.62 | ||
Granted | 32.74 | $ 24.09 | $ 24.98 |
Vested | 26.61 | ||
Forfeited | 17.65 | ||
Outstanding at February 2, 2019 | $ 23.94 | $ 23.62 | |
Restricted Stock Units and Performance Stock Units [Member] | |||
Number of Shares | |||
Outstanding at February 3, 2018 | 4,000 | ||
Granted | 200,000 | ||
Vested | (1,333) | ||
Forfeited | 0 | ||
Outstanding at February 2, 2019 | 202,667 | 4,000 | |
Weighted-Average Grant Date Fair Value | |||
Outstanding at February 3, 2018 | $ 19.55 | ||
Granted | 25.05 | ||
Vested | 19.55 | ||
Forfeited | 0 | ||
Outstanding at February 2, 2019 | $ 24.98 | $ 19.55 |
Stock Based Compensation (Sch_2
Stock Based Compensation (Schedule of Stock-based Compensation Expense for Stock Options, Restricted Stock, Performance Stock and SARs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Restricted Stock Units and Performance Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense before the recognized income tax benefit | $ 9,591 | $ 5,041 | $ 3,507 |
Income tax benefit | 2,328 | 2,490 | 1,322 |
Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense before the recognized income tax benefit | 540 | (61) | 276 |
Income tax benefit | $ 131 | $ (30) | $ 104 |
Stock Based Compensation (Summa
Stock Based Compensation (Summary of SARs Activity) (Details) - Stock Appreciation Rights (SARs) [Member] | 12 Months Ended |
Feb. 02, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at February 3, 2018 | shares | 103,475 |
Exercised | shares | (103,475) |
Outstanding at February 2, 2019 | shares | 0 |
Outstanding at February 3, 2018 | $ / shares | $ 24.26 |
Exercised | $ / shares | 24.26 |
Outstanding at February 2, 2019 | $ / shares | $ 0 |
Outstanding at February 2, 2019 | 0 years |
Stock Based Compensation (Sch_3
Stock Based Compensation (Schedule of SARs Assumptions) (Details) - Stock Appreciation Rights (SARs) [Member] - $ / shares | 3 Months Ended | 12 Months Ended | ||
Apr. 28, 2015 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk free interest rate yield curve, minimum | 1.40% | 0.49% | ||
Risk free interest rate yield curve, maximum | 2.58% | 1.94% | ||
Expected dividend yield | 1.30% | 1.10% | ||
Expected volatility | 39.21% | 35.51% | ||
Maximum life | 2 years 1 month 6 days | 3 years 1 month 6 days | ||
Exercise multiple | $ 1.34 | $ 1.34 | ||
Maximum payout | $ 10 | $ 10 | $ 10 | $ 10 |
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee exit rate | 2.20% | 2.20% | ||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee exit rate | 9.00% | 9.00% |
Business Risk (Narrative) (Deta
Business Risk (Narrative) (Details) - Supplier Concentration Risk [Member] - Sales Revenue, Net [Member] | 12 Months Ended |
Feb. 02, 2019 | |
Product Information [Line Items] | |
Concentration Risk, Percentage | 43.00% |
Nike, Inc. [Member] | |
Product Information [Line Items] | |
Concentration Risk, Percentage | 32.00% |
Skechers USA, Inc. [Member] | |
Product Information [Line Items] | |
Concentration Risk, Percentage | 11.00% |
Quarterly Results (Details)
Quarterly Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | [1],[2] | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Net sales | $ 234,658 | $ 269,181 | $ 268,366 | $ 257,445 | $ 243,232 | $ 287,469 | $ 235,064 | $ 253,389 | |||||||||||
Gross profit | 66,666 | 81,218 | 83,781 | 77,327 | 70,219 | 85,667 | 68,227 | 72,156 | $ 308,992 | $ 296,269 | $ 289,235 | ||||||||
Operating income | 1,497 | 16,016 | 14,931 | 17,316 | 170 | 17,880 | 6,424 | 13,227 | 49,760 | 37,701 | 37,912 | ||||||||
Net income (loss) | $ 1,359 | $ 12,046 | $ 11,775 | $ 12,955 | $ (3,891) | $ 10,697 | $ 3,896 | $ 8,231 | $ 38,135 | $ 18,933 | $ 23,517 | ||||||||
Net income (loss) per share – Basic | $ 0.09 | [3] | $ 0.80 | [3] | $ 0.77 | [3] | $ 0.83 | [3] | $ (0.24) | [3] | $ 0.66 | [3] | $ 0.24 | [3] | $ 0.48 | [3] | $ 2.51 | $ 1.15 | $ 1.28 |
Net income (loss) per share – Diluted | $ 0.09 | [3] | $ 0.76 | [3] | $ 0.76 | [3] | $ 0.83 | [3] | $ (0.24) | [3] | $ 0.66 | [3] | $ 0.24 | [3] | $ 0.48 | [3] | $ 2.45 | $ 1.15 | $ 1.28 |
[1] | Our gross profit, operating income and net loss for the fourth quarter of fiscal 2017 were impacted by the following items recorded in such quarter: gain on insurance proceeds related to hurricane affected stores of $3.3 million, or $0.13 per diluted share, net of tax, non-cash impairment charges for underperforming stores of $3.4 million, or $0.13 per diluted share, net of tax, additional stock-based compensation expense resulting from the enactment of the Tax Act and its impact on the anticipated vesting of outstanding performance-based restricted stock of $1.9 million, or $0.08 per diluted share, net of tax, and additional income tax expense resulting from the enactment of the Tax Act and our remeasurement of deferred tax assets and liabilities of $4.4 million, or $0.27 per diluted share. | ||||||||||||||||||
[2] | The fourth quarter of fiscal 2017 consisted of 14 weeks compared with 13 weeks in the fourth quarter of fiscal 2018. | ||||||||||||||||||
[3] | Per share amounts are computed independently for each of the quarters presented. The sum of the quarters may not equal the total year due to the impact of changes in weighted shares outstanding and differing applications of earnings under the two-class method. |
Quarterly Results (Parenthetica
Quarterly Results (Parenthetical) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Feb. 03, 2018 | Jan. 28, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||
Gain on insurance proceeds | $ 3,300 | ||||
Adjustment of diluted share related to hurricane affected stores | $ 0.13 | ||||
Non-cash impairment charges | $ 3,400 | ||||
Adjustment of diluted share related to non-cash impairment charges | $ 0.13 | ||||
Stock-based compensation expense | $ 1,900 | $ 10,162 | $ 5,017 | $ 3,822 | |
Adjustment of diluted share related to share based compensation | $ 0.08 | ||||
Income tax expense | $ 4,400 | $ 4,400 | $ 12,222 | $ 18,480 | $ 14,232 |
Adjustment of diluted share related to enactment of tax act | $ 0.27 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - $ / shares | 1 Months Ended | |||
Mar. 21, 2019 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Subsequent Event [Line Items] | ||||
Dividend declared, amount per share | $ 0.315 | $ 0.295 | $ 0.275 | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividend declared, date declared | Mar. 21, 2019 | |||
Dividend declared, amount per share | $ 0.08 | |||
Dividend declared, payment date | Apr. 22, 2019 | |||
Dividend declared, record date | Apr. 8, 2019 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 231 | $ 202 | $ 178 | |
Charged to Cost and Expenses | 110,314 | 102,701 | 102,826 | |
Credited to Costs and Expenses | 110,420 | 102,672 | 102,802 | |
Balance at End of Period | 600 | 231 | $ 202 | |
Accounting Standards Update 2014-09 [Member] | Before Adoption of ASC 606 [Member] | Reserve for Sales Returns and Allowances [Member] | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | [1] | $ 706 | ||
Balance at End of Period | [1] | $ 706 | ||
[1] | As a result of the implementation of ASC 606 on February 4, 2018, the accounting treatment for the reserve for sales returns and allowances was changed from a net to a gross basis. Under the previous revenue guidance, we recorded a net returns reserve. Under the new guidance, we record estimated sales returns at the gross sales price with a corresponding adjustment to inventory for the estimated cost of the product. The difference between the balance at the end of the fiscal year ended February 3, 2018 and the beginning of the fiscal year ended February 2, 2019 reflects this change in accounting policy. |