Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Mar. 18, 2020 | Aug. 02, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Feb. 1, 2020 | ||
Entity Registrant Name | SHOE CARNIVAL INC | ||
Entity Central Index Key | 0000895447 | ||
Current Fiscal Year End Date | --02-01 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SCVL | ||
Security Exchange Name | NASDAQ | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 14,009,059 | ||
Entity Public Float | $ 257,270,831 | ||
Entity File Number | 0-21360 | ||
Entity Incorporation, State or Country Code | IN | ||
Entity Tax Identification Number | 35-1736614 | ||
Entity Address, Address Line One | 7500 East Columbia Street | ||
Entity Address, City or Town | Evansville | ||
Entity Address, State or Province | IN | ||
Entity Address, Postal Zip Code | 47715 | ||
City Area Code | 812 | ||
Local Phone Number | 867-6471 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Certain information contained in the Definitive Proxy Statement for the 2020 Annual Meeting of Shareholders of the Registrant to be held on June 11, 2020 are incorporated by reference into PART III hereof. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 61,899 | $ 67,021 |
Accounts receivable | 2,724 | 1,219 |
Merchandise inventories | 259,495 | 257,539 |
Other | 5,529 | 11,534 |
Total Current Assets | 329,647 | 337,313 |
Property and equipment – net | 67,781 | 70,605 |
Deferred income taxes | 7,833 | 9,622 |
Other noncurrent assets | 8,106 | 459 |
Operating lease right-of-use assets | 215,007 | 0 |
Total Assets | 628,374 | 417,999 |
Current Liabilities: | ||
Accounts payable | 60,665 | 48,715 |
Accrued and other liabilities | 18,695 | 22,069 |
Current portion of operating lease liabilities | 43,146 | 0 |
Total Current Liabilities | 122,506 | 70,784 |
Long-term portion of operating lease liabilities | 194,108 | 0 |
Deferred lease incentives | 0 | 22,171 |
Accrued rent | 0 | 8,436 |
Deferred compensation | 13,345 | 12,108 |
Other | 1,052 | 67 |
Total Liabilities | 331,011 | 113,566 |
Shareholders’ Equity: | ||
Common stock, $.01 par value, 50,000,000 shares authorized, 20,524,601 and 20,529,227 shares issued, respectively | 205 | 205 |
Additional paid-in capital | 79,914 | 75,631 |
Retained earnings | 395,761 | 360,443 |
Treasury stock, at cost, 6,516,875 and 5,154,243 shares, respectively | (178,517) | (131,846) |
Total Shareholders’ Equity | 297,363 | 304,433 |
Total Liabilities and Shareholders’ Equity | $ 628,374 | $ 417,999 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 01, 2020 | Feb. 02, 2019 |
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 | 20,524,601 | 20,529,227 |
Treasury shares, shares | 6,516,875 | 5,154,243 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 1,036,551 | $ 1,029,650 | $ 1,019,154 |
Cost of sales (including buying, distribution and occupancy costs) | 724,682 | 720,658 | 722,885 |
Gross profit | 311,869 | 308,992 | 296,269 |
Selling, general and administrative expenses | 257,660 | 259,232 | 258,568 |
Operating income | 54,209 | 49,760 | 37,701 |
Interest income | (730) | (747) | (4) |
Interest expense | 191 | 150 | 292 |
Income before income taxes | 54,748 | 50,357 | 37,413 |
Income tax expense | 11,834 | 12,222 | 18,480 |
Net income | $ 42,914 | $ 38,135 | $ 18,933 |
Net income per share: | |||
Basic | $ 2.97 | $ 2.51 | $ 1.15 |
Diluted | $ 2.92 | $ 2.45 | $ 1.15 |
Weighted average shares: | |||
Basic | 14,427 | 15,111 | 16,220 |
Diluted | 14,686 | 15,499 | 16,227 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] |
Balance at Jan. 28, 2017 | $ 318,882 | $ 206 | $ (59,237) | $ 65,272 | $ 312,641 |
Balance, shares at Jan. 28, 2017 | 20,569 | (2,434) | |||
Cumulative Effect on Retained Earnings, Net of Tax | Adoption of Accounting Standards Update No. 2016-09 | 0 | (188) | 188 | ||
Stock option exercises | 54 | $ 168 | (114) | ||
Stock option exercises, shares | 7 | ||||
Dividends | (5,024) | (5,024) | |||
Employee stock purchase plan purchases | 205 | $ 249 | (44) | ||
Employee stock purchase plan purchases, shares | 10 | ||||
Restricted stock awards | 0 | $ (1) | $ 4,546 | (4,545) | |
Restricted stock awards, shares | (40) | 139 | |||
Shares surrendered by employees to pay taxes on restricted stock | (1,027) | $ (1,027) | |||
Shares surrendered by employees to pay taxes on restricted stock, shares | (45) | ||||
Purchase of common stock for Treasury | (29,798) | $ (29,798) | |||
Purchase of common stock for treasury, shares | (1,259) | ||||
Stock-based compensation expense | 5,077 | 5,077 | |||
Net income | 18,933 | 18,933 | |||
Balance at Feb. 03, 2018 | 307,302 | $ 205 | $ (85,099) | 65,458 | 326,738 |
Balance, shares at Feb. 03, 2018 | 20,529 | (3,582) | |||
Cumulative Effect on Retained Earnings, Net of Tax | Adoption of Accounting Standards Codification 606 | 620 | 620 | |||
Dividends | (5,050) | (5,050) | |||
Employee stock purchase plan purchases | 177 | $ 169 | 8 | ||
Employee stock purchase plan purchases, shares | 7 | ||||
Restricted stock awards | 0 | $ (543) | 543 | ||
Restricted stock awards, shares | (39) | ||||
Shares surrendered by employees to pay taxes on restricted stock | (327) | $ (327) | |||
Shares surrendered by employees to pay taxes on restricted stock, shares | (13) | ||||
Purchase of common stock for Treasury | (46,046) | $ (46,046) | |||
Purchase of common stock for treasury, shares | (1,527) | ||||
Stock-based compensation expense | 9,622 | 9,622 | |||
Net income | 38,135 | 38,135 | |||
Balance at Feb. 02, 2019 | 304,433 | $ 205 | $ (131,846) | 75,631 | 360,443 |
Balance, shares at Feb. 02, 2019 | 20,529 | (5,154) | |||
Cumulative Effect on Retained Earnings, Net of Tax | Adoption of Accounting Standards Codification 842 | (2,649) | (2,649) | |||
Dividends | (4,947) | (4,947) | |||
Employee stock purchase plan purchases | 182 | $ 175 | 7 | ||
Employee stock purchase plan purchases, shares | 6 | ||||
Restricted stock awards | 0 | $ 1,982 | (1,982) | ||
Restricted stock awards, shares | (4) | 72 | |||
Shares surrendered by employees to pay taxes on restricted stock | (11,060) | $ (11,060) | |||
Shares surrendered by employees to pay taxes on restricted stock, shares | (324) | ||||
Purchase of common stock for Treasury | (37,768) | $ (37,768) | |||
Purchase of common stock for treasury, shares | (1,117) | ||||
Stock-based compensation expense | 6,258 | 6,258 | |||
Net income | 42,914 | 42,914 | |||
Balance at Feb. 01, 2020 | $ 297,363 | $ 205 | $ (178,517) | $ 79,914 | $ 395,761 |
Balance, shares at Feb. 01, 2020 | 20,525 | (6,517) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Statement Of Stockholders Equity [Abstract] | |||
Dividends | $ 0.335 | $ 0.315 | $ 0.295 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | |
Cash Flows From Operating Activities | |||
Net income | $ 42,914 | $ 38,135 | $ 18,933 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 16,950 | 21,843 | 23,804 |
Stock-based compensation | 6,486 | 10,162 | 5,017 |
Loss/(gain) on retirement and impairment of assets, net | 1,503 | (1,264) | 5,511 |
Deferred income taxes | 2,619 | (1,440) | 1,418 |
Non-cash operating lease expense | 42,322 | 0 | 0 |
Lease incentives | 0 | 634 | 4,818 |
Other | 1,236 | (8,650) | (6,993) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,505) | 3,905 | (951) |
Merchandise inventories | (1,956) | 2,961 | 19,146 |
Operating lease liabilities | (45,933) | 0 | 0 |
Accounts payable and accrued liabilities | 9,468 | 12,688 | (30,132) |
Other | (7,158) | (4,833) | (223) |
Net cash provided by operating activities | 66,946 | 74,141 | 40,348 |
Cash Flows From Investing Activities | |||
Purchases of property and equipment | (18,501) | (7,413) | (19,653) |
Other proceeds | 750 | 2,998 | 0 |
Net cash used in investing activities | (17,751) | (4,415) | (19,653) |
Cash Flow From Financing Activities | |||
Borrowings under line of credit | 20,000 | 0 | 88,600 |
Payments on line of credit | (20,000) | 0 | (88,600) |
Proceeds from issuance of stock | 182 | 177 | 259 |
Dividends paid | (5,671) | (4,763) | (4,819) |
Purchase of common stock for treasury | (37,768) | (46,046) | (29,798) |
Shares surrendered by employees to pay taxes on restricted stock | (11,060) | (327) | (1,027) |
Net cash used in financing activities | (54,317) | (50,959) | (35,385) |
Net (decrease) increase in cash and cash equivalents | (5,122) | 18,767 | (14,690) |
Cash and cash equivalents at beginning of year | 67,021 | 48,254 | 62,944 |
Cash and cash equivalents at end of year | 61,899 | 67,021 | 48,254 |
Supplemental disclosures of cash flow information: | |||
Cash paid during year for interest | 192 | 150 | 292 |
Cash paid during year for income taxes | 9,805 | 13,419 | 16,832 |
Capital expenditures incurred but not yet paid | 1,377 | 130 | 783 |
Dividends declared but not yet paid | $ 165 | $ 888 | $ 601 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Feb. 01, 2020 | |
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 mobile app and our e-commerce site at www.shoecarnival.com. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 01, 2020 | |
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 2019, 2018 and 2017 relate to the fiscal years ended February 1, 2020, February 2, 2019 and February 3, 2018, 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 $61.9 million at February 1, 2020 and $67.0 million at February 2, 2019. Credit and debit card receivables and receivables due from a third party totaling $10.0 million and $8.2 million were included in cash equivalents at February 1, 2020 and February 2, 2019, 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 1, 2020 and February 2, 2019, all invested cash was held in money market mutual funds. 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 Measurements Certain assets are valued and disclosed at fair value. Financial assets include cash and cash equivalents. Nonfinancial assets consist of long-lived assets that are tested for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Accounting guidance provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows: Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2 – Inputs to the valuation methodology include: • quoted prices for similar assets or liabilities in active markets; • quoted prices for identical or similar assets or liabilities in inactive markets; • inputs other than quoted prices that are observable for the asset or liability; • inputs that are derived principally from or corroborated by observable market; and • data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used maximize the use of observable inputs and minimize the use of unobservable inputs. 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 realizable 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 also review aging trends, which include the historical rate at which merchandise has sold below cost and the value and nature of merchandise currently held in inventory and priced below original cost. 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. Leases We lease our retail stores and our single distribution center, which has a current lease term of 15 years, expiring in 2034. We also enter into leases of equipment, copiers and billboards. Prior to the purchase of our corporate headquarters in fiscal 2019, it was also leased. All of our leases are operating leases. Therefore, how operating leases are recognized throughout the financial statements in accordance with applicable accounting guidance can have a significant impact on our financial condition and results of operations and related disclosures. In February 2016, the Financial Accounting Standards Board (“FASB”) issued guidance which replaced most existing lease accounting guidance. This guidance requires an entity to recognize leased assets (“right-of-use” assets or “ROU” assets) and obligations created by those leased assets on the balance sheet at their present values and to disclose key information about the entity's leasing arrangements. This new guidance was codified as Accounting Standards Codification Topic No. 842 – Leases . Under the new guidance, companies may elect certain optional practical expedients. We elected the practical expedient that permits us not to recognize ROU assets and related liabilities that arise from short-term leases (i.e. leases with terms of twelve months or less). We elected the practical expedient that permits us to account for lease and non-lease components as a single lease component for new and modified leases, effective upon adoption of the new guidance. We did not elect the transition practical expedient that permit companies to use hindsight when determining lease term and impairment of ROU assets. We also did not elect the transition package of practical expedients that is permitted by the guidance; therefore, we were required to reassess previous accounting conclusions regarding whether existing arrangements are, or contain, leases, the classification of existing leases and the treatment of initial direct costs. At adoption, initial recognition of operating lease liabilities totaled $251.7 million as of February 3, 2019. We recorded corresponding operating lease ROU assets based on the operating lease liabilities, reduced by net accrued rent, unamortized deferred lease incentives and prepaid rent totaling $25.8 million. Moreover, as of the adoption date, we recorded $2.6 million of lease-related capitalized costs to beginning retained earnings, net of tax, that did not meet the definition of initial direct costs in accordance with the new guidance. See Note 8 – “Leases” for additional discussion of our lease policies as well as additional disclosures related to our leases. 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 to the customer and the risks and rewards of the product that we retain are minimal. The redemption of loyalty points under our Shoe Perks loyalty rewards program and redemptions of gift cards are accounted for as separate performance obligations. We adopted and applied the new revenue guidance in Accounting Standards Codification Topic No. 606 – Revenue from Contracts with Customers See Note 4 – “Revenue” for additional discussion of our revenue recognition policies as well as additional disclosures on revenue from contracts with customers. 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. Cloud Computing Arrangements that are Service Contracts We account for the costs to implement hosted cloud computing arrangements that are considered to be service contracts in current and noncurrent other assets. We capitalize these costs based on the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We amortize the costs over the related service contract period for the hosted arrangement. For fiscal 2019, the amortization of the implementation costs and the related service contract fees are included in selling, general and administrative expenses. Long-Lived Asset Impairment Testing 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 is performed, at the lowest level for which there are identifiable cash flows, which is generally at a store level. Store level asset groupings typically include property and equipment and operating lease right-of-use assets. 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. If the operating lease right-of-use asset is impaired, we would amortize the remaining right-of-use asset on a straight-line basis over the remaining lease term. 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 estimates are derived from 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. We estimate the fair value of operating right-of-use assets using the market value of rents applicable to the leased asset, discounted using the remaining lease term. External factors, such as the local environment in which the store resides, including store traffic and competition, are evaluated in terms of their effect on sales trends. Changes in sales and operating income assumptions or unfavorable changes in external factors can significantly impact the estimated future cash flows. An increase or decrease in the projected cash flow can significantly decrease or increase the fair value of these assets, which may have an effect on the impairment recorded. 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. 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. Self-insurance reserves include estimates of claims filed, carried at their expected ultimate settlement value, and claims incurred but not yet reported. These estimates take 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. As of February 1, 2020 and February 2, 2019, our self-insurance reserves totaled $2.7 million and $3.4 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. Consideration Received From a Vendor Consideration is primarily received from merchandise vendors and 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 is recorded as a reduction of the price paid for the vendor’s products and recorded as a reduction of our cost of sales unless the consideration represents a reimbursement of a specific, incremental, identifiable cost; in such a scenario, it is recorded as an offset to the same financial statement line item. 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 consideration received be related to something other than the vendor’s product and such consideration received exceeds the incremental costs incurred, 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. Advertising Costs Print, television, radio, outdoor media, digital media and internal production costs are expensed when incurred. External production costs are expensed in the period the advertisement first takes place. Advertising expenses included in selling, general and administrative expenses were $40.0 million, $41.2 million and $40.1 million in fiscal years 2019, 2018 and 2017, respectively. Store Opening and Start-up Costs Non-capital expenditures, such as payroll, supplies and rent incurred prior to the opening of a new store, are charged to expense in the period they are incurred. Advertising related to new stores is expensed pursuant to the aforementioned advertising policy. Stock-Based Compensation We recognize compensation expense for stock-based awards based on a fair value based method. Stock-based awards may include stock units, restricted stock, stock appreciation rights, stock options 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 are a family footwear retailer that offers a broad assortment of moderately priced dress, casual and athletic footwear for men, women and children with emphasis on national name brands. We operate our business as one reportable segment based on the similar nature of products sold; merchandising, distribution, and marketing processes involved; target customers; and economic characteristics of our stores and e-commerce platform. Due to our multi-channel retailer strategy, we view 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 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. On December 22, 2017, the U.S. government enacted the U.S. Tax Cuts and Jobs Act (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 provided 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 in fiscal 2017, 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 determined that these provisions were the only provisions of the Tax Act that impacted fiscal 2017 results. In fiscal 2018 we filed our fiscal 2017 federal income tax return and completed our assessment of the final impact of the Tax Act and recorded an income tax benefit of $0.1 million. Net Income Per Share The following table sets forth the computation of basic and diluted net income per share as shown on the face of the accompanying consolidated statements of income: Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 (In thousands, except per share data) Basic Net Income per Share: Net Income Shares Per Share Amount Net Income Shares Per Share Amount Net Income Shares Per Share Amount Net income $ 42,914 $ 38,135 $ 18,933 Amount allocated to participating securities (63 ) (152 ) (250 ) Net income available for basic common shares and basic net income per share $ 42,851 14,427 $ 2.97 $ 37,983 15,111 $ 2.51 $ 18,683 16,220 $ 1.15 Diluted Net Income per Share: Net income $ 42,914 $ 38,135 $ 18,933 Amount allocated to participating securities (63 ) (152 ) (250 ) Adjustment for dilutive potential common shares 1 259 4 388 0 7 Net income available for diluted common shares and diluted net income per share $ 42,852 14,686 $ 2.92 $ 37,987 15,499 $ 2.45 $ 18,683 16,227 $ 1.15 Our basic and diluted net income 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. 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. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Feb. 01, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 3 – Fair Value of Financial Instruments The following table presents financial instruments that are measured at fair value on a recurring basis at February 1, 2020 and February 2, 2019: Fair Value Measurements (In thousands) Level 1 Level 2 Level 3 Total As of February 1, 2020: Cash equivalents – money market mutual funds $ 48,080 $ 0 $ 0 $ 48,080 As of February 2, 2019: Cash equivalents – money market mutual funds $ 68,500 $ 0 $ 0 $ 68,500 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. |
Revenue
Revenue | 12 Months Ended |
Feb. 01, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 4 – Revenue Revenue is disaggregated by product category below. Net sales and percentage of net sales for the fiscal years 2019, 2018 and 2017 are as follows: (In thousands) February 1, 2020 February 2, 2019 February 3, 2018 Non-Athletics: Women's $ 255,773 25 % $ 250,320 24 % $ 244,945 24 % Men's 149,075 14 144,628 14 141,295 14 Children's 54,707 5 51,963 5 50,255 5 Total 459,555 44 446,911 43 436,495 43 Athletics: Women's 175,298 17 179,411 18 177,627 17 Men's 210,157 20 215,796 21 219,224 22 Children's 139,625 14 138,686 14 138,074 14 Total 525,080 51 533,893 53 534,925 53 Accessories 48,402 5 45,100 4 43,606 4 Other 3,514 0 3,746 0 4,128 0 Total $ 1,036,551 100 % $ 1,029,650 100 % $ 1,019,154 100 % 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. 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 when customers choose to pick 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 when the customer chooses home delivery. 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. When a customer makes a purchase as part of our rewards program, we allocate the transaction price between the goods purchased and the loyalty reward points and recognize the loyalty revenue based on estimated customer redemptions. 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 and may include revenue to offset shipping costs. 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, Apple Pay 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 1, 2020 and February 2, 2019. Returns and Refunds Brick-and-mortar and online customers can 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 1, 2020, approximately $718,000 of refund liabilities and $500,000 of right of return assets associated with estimated product returns were recorded in our consolidated balance sheet. 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. Estimated breakage is determined based on historical breakage percentages and recognized as revenue based on expected gift card usage. We do not record breakage revenue when escheat liability to relevant jurisdictions exists. At February 1, 2020 and February 2, 2019, approximately $1.5 million and $1.6 million of contract liabilities associated with unredeemed gift cards were recorded in our consolidated balance sheets, respectively. We expect the revenue associated with these liabilities to be recognized in proportion to the pattern of customer redemptions within two years. Breakage revenue associated with our gift cards of $143,000 and $179,000 was recognized in net sales during fiscal 2019 and fiscal 2018, respectively. Our Shoe Perks rewards program allows customers to accrue 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. When a Shoe Perks customer makes a purchase, we allocate the transaction price between the goods purchased and the loyalty reward points earned based on the relative standalone selling price. The portion allocated to the points program 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 redeem rewards, which incorporates an estimate of points expected to expire using historical rates. During fiscal 2019 and 2018, approximately $2.4 million and $1.5 million, respectively, of loyalty rewards were recognized in net sales. At February 1, 2020 and February 2, 2019, approximately $679,000 and $245,000 of contract liabilities associated with loyalty rewards were recorded in our consolidated balance sheets, respectively. We expect the revenue associated with these liabilities to be recognized in proportion to the pattern of customer redemptions in less than one year. |
Property and Equipment and Host
Property and Equipment and Hosted Cloud Computing Arrangements | 12 Months Ended |
Feb. 01, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment and Hosted Cloud Computing Arrangements | Note 5 – Property and Equipment and Hosted Cloud Computing Arrangements The following is a summary of property and equipment: (In thousands) February 1, 2020 February 2, 2019 Land $ 1,564 $ 0 Buildings 6,636 0 Furniture, fixtures and equipment 153,198 156,596 Leasehold improvements 105,611 110,824 Total 267,009 267,420 Less accumulated depreciation and amortization (199,228 ) (196,815 ) Property and equipment – net $ 67,781 $ 70,605 In fiscal 2019, we recorded an impairment charge of $1.2 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 no remaining unamortized basis. There were no impairments of long-lived assets recorded during fiscal 2018. In fiscal 2017, 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. We have engaged several third party providers of cloud computing arrangements that are service contracts to host our Customer Relationship Management (“CRM”) platform and our transportation, warehouse and e-commerce order management systems. Total gross capitalized costs as of February 1, 2020 and February 2, 2019 were $8.1 million and $1.2 million, respectively, for these arrangements. Accumulated amortization totaled $122,000 at February 1, 2020 and was $0 at February 2, 2019. Total amortization expense was $122,000 during fiscal year 2019. As of February 1, 2020, $713,000 is classified in Other current assets and $7.3 million is classified as Other noncurrent assets in our consolidated balance sheet, net of accumulated amortization. |
Accrued and Other Liabilities
Accrued and Other Liabilities | 12 Months Ended |
Feb. 01, 2020 | |
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 1, 2020 February 2, 2019 Employee compensation and benefits $ 7,687 $ 9,771 Self-insurance reserves 2,698 3,447 Gift cards 1,538 1,558 Sales and use tax 2,317 2,131 Other 4,455 5,162 Total accrued and other liabilities $ 18,695 $ 22,069 |
Debt
Debt | 12 Months Ended |
Feb. 01, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 7 – 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, as amended, The Credit Agreement contains covenants which stipulate: (1) Total Shareholders’ Equity (as defined in the Credit Agreement) 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 (as defined in the Credit Agreement) 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 (as defined in the Credit Agreement) 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. No borrowings were outstanding as of February 1, 2020 and February 2, 2019. As of February 1, 2020, 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. 01, 2020 | |
Leases [Abstract] | |
Leases | Note 8 – Leases Accounting Policy for Leases We evaluate whether a contract is a lease at its inception, and if it is a lease, the type of lease. All of our leases are classified as operating leases as of February 1, 2020. Leases with terms of twelve months or less are immaterial and are expensed as incurred. We do not have any leases with related parties. In addition, we do not have any sublease arrangements with any related party or third party. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. In accordance with ASC 842, on the lease commencement date we recognize an ROU asset for the right to use a leased asset and a liability based on the present value of remaining lease payments over the lease term. As the rate implicit in our leases is not readily determinable, we utilize an incremental borrowing rate for the initial measurement of ROU assets and liabilities, which is determined through the development of a synthetic credit rating. For leases existing before the adoption of ASC 842, we used an incremental borrowing rate as of the date of adoption, determined using the remaining lease term as of the date of adoption. For leases commencing on or after the adoption of ASC 842, the incremental borrowing rate is determined using the remaining lease term as of the lease commencement date. Our leases typically provide for fixed minimum rental payments, and certain leases provide for contingent rental payments based upon various specified percentages of sales above minimum levels. In addition to rental payments, we are required to pay certain non-lease components, such as real estate taxes, insurance and common area maintenance (“CAM”), on most of our real estate leases. Such non-lease components are typically variable in nature. Certain real estate leases also contain escalation clauses for increases in minimum rentals, operating costs and taxes. In addition to fixed minimum rental payments set forth in our leases, the measurement of ROU assets and liabilities can also include prepaid rent, landlord incentives (such as construction and tenant improvement allowances), fixed payments related to lease components (such as rent escalation payments scheduled at the lease commencement date), fixed payments related to non-lease components (such as taxes, insurance, and CAM) and initial direct costs incurred in conjunction with securing a lease. The measurement of ROU assets and liabilities excludes amounts related to variable payments related to lease components (such as contingent rent payments based on performance), variable payments related to non-lease components (such as real estate taxes, insurance and CAM) and non-store related leases with an initial term of 12 months or less. Our real estate leases typically include options to extend the lease or to terminate the lease at our sole discretion. Options to extend real estate leases typically include one or more options to renew, with renewal terms that typically extend the lease term for five years or more. Many of our leases also contain “co-tenancy” provisions, including the required presence and continued operation of certain anchor tenants in the adjoining retail space. If a co-tenancy violation occurs, we have the right to a reduction of rent for a defined period after which we have the option to terminate the lease if the violation is not cured. In addition to co-tenancy provisions, certain leases contain “go-dark” provisions that allow us to cease operations while continuing to pay rent through the end of the lease term. When determining the lease term, we include options that are reasonably certain to be exercised. Operating lease liabilities are increased by interest and reduced by payments each period, and ROU assets are amortized over the lease term. Interest on operating lease liabilities and the amortization of ROU assets results in straight-line rent expense over the lease term. We record variable lease expense associated with contingent rent, reduced rent due to co-tenancy violations, and other variable non-lease components when incurred. For new leases, renewals or amendments, we make certain estimates and assumptions regarding property values, market rents, property lives, discount rates and probable terms. These estimates and assumptions can impact: (1) lease classification and the related accounting treatment; (2) rent holidays, escalations or deferred lease incentives, which are taken into consideration when calculating straight-line expense; (3) the term over which leasehold improvements for each store are amortized; and (4) the values and lives of adjustments to initial ROU assets. The amount of amortized rent expense would vary if different estimates and assumptions were used. Lease-related costs reported in our consolidated statements of income post adoption of ASC 842 were as follows: (In thousands) 2019 Operating lease cost $ 54,681 Variable lease costs CAM, property taxes and insurance 20,010 Percentage rent and other variable lease costs 1,637 Total $ 76,328 Other information related to leases post adoption of ASC 842, including supplemental cash flow information, consists of: (In thousands) 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 45,933 ROU assets obtained in exchange for operating lease liabilities $ 31,474 As of February 1, 2020 Weighted-average remaining lease term for operating leases (in years) 6.1 Weighted-average discount rate for operating leases 5.5 % The following table reconciles the undiscounted cash flows for each of the first five years and the total of the remaining years to the operating lease liabilities recognized pursuant to ASC 842 on the consolidated balance sheet as of February 1, 2020: (In thousands) Operating Leases 2020 $ 55,246 2021 55,358 2022 48,188 2023 41,592 2024 28,134 Thereafter to 2034 63,446 Total undiscounted lease payments 291,964 Less: Imputed interest 54,710 Total operating lease liabilities 237,254 Less: Current portion of operating lease liabilities 43,146 Long-term portion of operating lease liabilities $ $194,108 Prior to our adoption of ASC 842, we accounted for our leases using Accounting Standards Codification Topic No. 840 – Leases |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 – Income Taxes The provision for income taxes consisted of: (In thousands) 2019 2018 2017 Current: Federal $ 6,799 $ 11,468 $ 14,579 State 2,175 1,693 2,241 Puerto Rico 241 700 242 Total current 9,215 13,861 17,062 Deferred: Federal 2,749 (894 ) 2,383 State 3 (745 ) (965 ) Puerto Rico 246 643 2,500 Total deferred 2,998 (996 ) 3,918 Valuation allowance (379 ) (643 ) (2,500 ) Total provision $ 11,834 $ 12,222 $ 18,480 We realized an excess tax benefit of $1.9 million in fiscal year 2019, tax benefit of $26,100 in fiscal year 2018 and tax expense of $17,800 in fiscal year 2017 as a result of the vesting of awards granted pursuant to our stock-based compensation plans described in Note 11. These amounts were recorded in tax expense in fiscal 2019 and fiscal 2018 and shareholder’s equity in fiscal 2017. Reconciliation between the statutory federal income tax rate and the effective income tax rate is as follows: Fiscal years 2019 2018 2017 U.S. Federal statutory tax rate 21.0 % 21.0 % 33.7 % State and local income taxes, net of federal tax benefit 3.2 3.0 3.0 Puerto Rico 0.5 4.2 0.7 Valuation allowance (0.7 ) (1.3 ) (6.7 ) Tax effect of foreign losses 0.4 (2.7 ) 6.3 Remeasurement of deferred tax assets and liabilities due to the Tax Act 0.0 0.0 11.6 Excess tax benefit on stock-based compensation (3.6 ) 0.0 0.0 Other 0.8 0.1 0.8 Effective income tax rate 21.6 % 24.3 % 49.4 % We recorded $263,000, $310,000 and $223,000 in federal employment-related tax credits in fiscal 2019, 2018 and 2017, 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 1, 2020 February 2, 2019 Deferred tax assets: Lease obligations $ 57,891 $ 7,480 Accrued compensation 4,844 7,843 Inventory 938 787 Other 1,282 1,490 Total deferred tax assets 64,955 17,600 Valuation allowance (194 ) (574 ) Total deferred tax assets – net of valuation allowance 64,761 17,026 Deferred tax liabilities: Lease right-of-use assets 51,367 0 Property and equipment 4,711 6,484 Other 850 920 Total deferred tax liabilities 56,928 7,404 Long-term deferred income taxes, net $ 7,833 $ 9,622 At the end of fiscal 2019, we estimated foreign net operating loss carry forwards of $350,000, which expire between fiscal 2024 and fiscal 2027. At February 1, 2020, we had a valuation allowance of $194,000 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 1, 2020 and February 2, 2019 there were no unrecognized tax liabilities or related accrued penalties or interest in other liabilities on the consolidated balance sheets. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Feb. 01, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 10 – Employee Benefit Plans Retirement Savings Plans Our Board of Directors-approved Shoe Carnival Retirement 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 a matching Company contribution up to 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. Our Board of Directors-approved Shoe Carnival 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 a matching Company contribution up to the first 4% at a rate of 50%. Contributions charged to expense associated with these plans were $818,000, $754,000 and $751,000 in fiscal years 2019, 2018 and 2017, 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, 7,000 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 $182,000, $177,000 and $205,000 for fiscal years 2019, 2018 and 2017, respectively. At February 1, 2020, there were 70,000 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) 2019 2018 2017 Stock-based compensation expense before the recognized income tax benefit (1) $ 32 $ 31 $ 36 Income tax benefit $ 7 $ 8 $ 18 (1) Amounts are representative of the 15% discount employees are provided for purchases under the Stock Purchase Plan. Deferred Compensation Plan We have 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 may elect on an annual basis to defer, on a pre-tax basis, portions of their current compensation until retirement, or earlier if so elected. We voluntarily match a portion of the employees’ contributions, which is 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 $2.0 million for fiscal 2019, $154,000 for fiscal 2018 and $1.8 million for fiscal 2017. The total deferred compensation liability at February 1, 2020 and February 2, 2019 was $13.9 million and $12.1 million, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Feb. 01, 2020 | |
Share Based Compensation [Abstract] | |
Stock-Based Compensation | Note 11 – Stock-Based Compensation Compensation Plan Summaries At our 2017 annual meeting of shareholders, our shareholders approved a new equity incentive plan, the Shoe Carnival, Inc. 2017 Equity Incentive Plan (the “2017 Plan”), which replaced our 2000 Stock Option and Incentive Plan, as amended (the “2000 Plan”). Under the 2017 Plan, we may issue stock units, restricted stock, stock appreciation rights, stock options and other stock-based awards to eligible participants. According to the terms of the 2017 Plan, 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. As of February 1, 2020, there were approximately 650,000 shares of our common stock available for future issuances under our 2017 Plan. Stock-based compensation includes restricted stock units and performance stock units, restricted stock awards, cash-settled stock appreciation rights (“SARs”), and stock options. 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 awards are granted such that they vest upon the achievement of specified levels of diluted net income per share during a specified performance period. Should the diluted net income per share criteria not be met within the stated period, any shares still restricted are forfeited. Currently, performance-based equity awards are granted such that vesting depends on whether diluted net income per share meets an established threshold, target, or maximum level of performance. Diluted net income per share below the threshold level of performance will result in complete forfeiture of the award. Service-based restricted stock units and restricted stock awards typically are granted under one of four vesting periods: (a) one-third of the shares would vest on each of the first three 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 Share-Settled Equity Awards 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 2, 2019 202,667 $ 24.98 Granted 187,745 31.29 Vested (98,733 ) 24.54 Forfeited (28,544 ) 26.83 Restricted stock units and performance stock units at February 1, 2020 263,135 $ 29.44 The total fair value at grant date of restricted stock units and performance stock units that vested during fiscal 2019 and 2018 was $2.4 million and $26,000, respectively. No units vested in fiscal 2017. The weighted-average grant date fair value of restricted stock units and performance stock units granted during fiscal 2018 and fiscal 2017 was $25.05 and $19.55, respectively. 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 2, 2019 825,281 $ 23.94 Granted 13,548 26.58 Vested (726,406 ) 23.94 Forfeited (44,988 ) 24.27 Restricted stock at February 1, 2020 67,435 $ 24.23 The total fair value at grant date of all restricted stock that vested during fiscal 2019, 2018 and 2017 was $17.4 million, $1.3 million and $3.5 million, respectively. The weighted-average grant date fair value of all restricted stock granted during fiscal 2018 and fiscal 2017 was $32.74 and $24.09, respectively. The following table summarizes information regarding stock-based compensation expense recognized for all share-settled equity awards (restricted stock awards, restricted stock units and performance stock units): (In thousands) 2019 2018 2017 Stock-based compensation expense before the recognized income tax benefit $ 6,226 $ 9,591 $ 5,041 Income tax benefit $ 1,346 $ 2,328 $ 2,490 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 1, 2020, there was approximately $3.0 million of unrecognized compensation expense remaining related to both our restricted stock units and performance stock units and performance-based and service-based restricted stock awards. The cost is expected to be recognized over a weighted average period of approximately 0.7 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 SARs were granted during the first quarter of fiscal 2019 to certain non-executive employees and will vest and become fully exercisable on March 31, 2020. Any unexercised SARs will expire on March 31, 2022. Each SAR entitles 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 2019 were issued with a defined maximum gain of $10.00 over the exercise price of $34.95. During the first quarter of fiscal 2015, SARs were granted 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 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 2, 2019 0 $ 0.00 Granted 43,900 34.95 Forfeited (700 ) 34.95 Exercised 0 0.00 Outstanding at February 1, 2020 43,200 $ 34.95 2.2 The fair value of these liability awards will be remeasured, using a trinomial lattice model at each reporting period until the date of settlement. Increases or decreases in stock-based compensation expense are recognized over the vesting period, or immediately for vested awards. The weighted-average fair value of outstanding, non-vested SAR awards as of February 1, 2020, was $6.37. The fair value was estimated using a trinomial lattice model with the following assumptions: February 1, 2020 Risk free interest rate yield curve 1.30%-1.56 % Expected dividend yield 0.9 % Expected volatility 48.63 % Maximum life 2.2 Years Exercise multiple 1.29 Maximum payout $ 10.00 Employee exit rate 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) 2019 2018 2017 Stock-based compensation before the recognized income tax effect $ 228 $ 540 $ (61 ) Income tax effect $ 49 $ 131 $ (30 ) As of February 1, 2020, approximately $47,000 in unrecognized compensation expense remained related to non-vested SARs. This expense is expected to be recognized over a period of approximately 0.2 years. Stock Options No stock options have been granted since fiscal 2008. During fiscal 2017, all remaining stock options were exercised. The total intrinsic value (defined as the difference between the market value at exercise and the grant price of stock options exercised) of stock options exercised in fiscal 2017 was $127,000 and total cash received was $54,000. |
Share Repurchase Plan
Share Repurchase Plan | 12 Months Ended |
Feb. 01, 2020 | |
Equity [Abstract] | |
Share Repurchase Plan | Note 12 – Share Repurchase Plan On December 12, 2019, our Board of Directors authorized a new share repurchase program for up to $50 million of outstanding common stock, effective January 1, 2020. The purchases may be made in the open market or through privately negotiated transactions from time-to-time through December 31, 2020 and in accordance with applicable laws, rules and regulations. The share repurchase program may be amended, suspended or discontinued at any time and does not commit us to repurchase shares of our common stock. We have funded, and intend to continue to fund, the share repurchase program from cash on hand, and any shares acquired will be available for stock-based compensation awards and other corporate purposes. The actual number and value of the shares to be purchased will depend on the performance of our stock price and other market conditions. As of February 1, 2020, we had purchased approximately 184,000 shares at an aggregate cost of $6.9 million under the new share repurchase program, and we had $43.1 million available for future repurchases. The new share repurchase program replaced a $50 million share repurchase program that was authorized in December 2018 and expired in accordance with its terms on December 31, 2019. At its expiration, we had purchased approximately 933,000 shares at an aggregate cost of $30.9 million under that repurchase program. Other Board-approved share repurchase programs existed in fiscal 2018 and fiscal 2017. Share repurchases and amounts paid in those fiscal years were approximately 1,529,000 shares at an aggregate cost of $46.0 million in fiscal 2018 and approximately 1,259,000 shares at an aggregate cost of $29.8 million in fiscal 2017. |
Business Risk
Business Risk | 12 Months Ended |
Feb. 01, 2020 | |
Risks And Uncertainties [Abstract] | |
Business Risk | Note 13 – Business Risk We purchase merchandise from approximately 160 footwear vendors. In fiscal 2019, two branded suppliers, Nike, Inc. and Skechers USA, Inc., collectively accounted for approximately 41% of our net sales. Nike, Inc. accounted for approximately 30% . |
Litigation Matters
Litigation Matters | 12 Months Ended |
Feb. 01, 2020 | |
Loss Contingency Information About Litigation Matters [Abstract] | |
Litigation Matters | Note 14 – 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 (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | Note 15 – 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 2019 and 2018 include results for 13 weeks. (In thousands, except per share data) Fiscal 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 253,810 $ 268,221 $ 274,645 $ 239,875 Gross profit 75,140 82,095 84,734 69,900 Operating income 15,608 15,674 18,150 4,777 Net income 13,873 11,832 13,726 3,483 Net income per share – Basic (1) $ 0.95 $ 0.81 $ 0.95 $ 0.25 Net income per share – Diluted (1) $ 0.91 $ 0.80 $ 0.94 $ 0.24 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 (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. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Feb. 01, 2020 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
New Accounting Pronouncements | Note 16 – New Accounting Pronouncements In August 2018, the FASB issued guidance that adds, removes, and modifies the disclosure requirements related to fair value measurements. This accounting update is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted. We are evaluating the impact of this new guidance and believe the adoption will not have a material impact on our consolidated financial statements. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Feb. 01, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17 – Subsequent Events Dividend Approval On March 18, 2020, the Board of Directors approved the payment of a cash dividend to our shareholders in the first quarter of fiscal 2020. The quarterly cash dividend of $0.085 per share will be paid on April 20, 2020 to shareholders of record as of the close of business on April 6, 2020. 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. COVID-19 Pandemic Our operations are currently experiencing significant disruption associated with an outbreak of a novel strain of coronavirus (“COVID-19”). The World Health Organization has declared COVID‑19 a pandemic. The U.S. Government has taken unprecedented measures to control the virus’ spread and to provide stimulus as an offsetting measure to quickly deteriorating economic conditions and increasing unemployment. Our operations have been significantly impacted by the temporary closure of our brick-and-mortar stores effective March 19, 2020 to April 2, 2020 and reduced foot traffic and sales prior to such time. Our website and mobile app are continuing to take e-commerce orders, which are generally being fulfilled at our store locations. As guidance and mandates from governments and health officials continue to evolve, closures to some, or all, of our operations will need to extend beyond the announced closure period. e expect this matter will negatively impact our results of operations, cash flows, and financial condition; however, such impacts cannot be reasonably estimated at this time. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Feb. 01, 2020 | |
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 February 3, 2018 $ 202 $ 102,701 $ 102,672 $ 231 Year ended February 2, 2019 $ 706 (1) $ 110,314 $ 110,420 $ 600 Year ended February 1, 2020 $ 600 $ 105,549 $ 105,431 $ 718 (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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 01, 2020 | |
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 2019, 2018 and 2017 relate to the fiscal years ended February 1, 2020, February 2, 2019 and February 3, 2018, 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 $61.9 million at February 1, 2020 and $67.0 million at February 2, 2019. Credit and debit card receivables and receivables due from a third party totaling $10.0 million and $8.2 million were included in cash equivalents at February 1, 2020 and February 2, 2019, 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 1, 2020 and February 2, 2019, all invested cash was held in money market mutual funds. 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 Measurements | Fair Value Measurements Certain assets are valued and disclosed at fair value. Financial assets include cash and cash equivalents. Nonfinancial assets consist of long-lived assets that are tested for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Accounting guidance provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows: Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2 – Inputs to the valuation methodology include: • quoted prices for similar assets or liabilities in active markets; • quoted prices for identical or similar assets or liabilities in inactive markets; • inputs other than quoted prices that are observable for the asset or liability; • inputs that are derived principally from or corroborated by observable market; and • data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used maximize the use of observable inputs and minimize the use of unobservable inputs. |
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 realizable 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 also review aging trends, which include the historical rate at which merchandise has sold below cost and the value and nature of merchandise currently held in inventory and priced below original cost. 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. |
Leases | Leases We lease our retail stores and our single distribution center, which has a current lease term of 15 years, expiring in 2034. We also enter into leases of equipment, copiers and billboards. Prior to the purchase of our corporate headquarters in fiscal 2019, it was also leased. All of our leases are operating leases. Therefore, how operating leases are recognized throughout the financial statements in accordance with applicable accounting guidance can have a significant impact on our financial condition and results of operations and related disclosures. In February 2016, the Financial Accounting Standards Board (“FASB”) issued guidance which replaced most existing lease accounting guidance. This guidance requires an entity to recognize leased assets (“right-of-use” assets or “ROU” assets) and obligations created by those leased assets on the balance sheet at their present values and to disclose key information about the entity's leasing arrangements. This new guidance was codified as Accounting Standards Codification Topic No. 842 – Leases . Under the new guidance, companies may elect certain optional practical expedients. We elected the practical expedient that permits us not to recognize ROU assets and related liabilities that arise from short-term leases (i.e. leases with terms of twelve months or less). We elected the practical expedient that permits us to account for lease and non-lease components as a single lease component for new and modified leases, effective upon adoption of the new guidance. We did not elect the transition practical expedient that permit companies to use hindsight when determining lease term and impairment of ROU assets. We also did not elect the transition package of practical expedients that is permitted by the guidance; therefore, we were required to reassess previous accounting conclusions regarding whether existing arrangements are, or contain, leases, the classification of existing leases and the treatment of initial direct costs. At adoption, initial recognition of operating lease liabilities totaled $251.7 million as of February 3, 2019. We recorded corresponding operating lease ROU assets based on the operating lease liabilities, reduced by net accrued rent, unamortized deferred lease incentives and prepaid rent totaling $25.8 million. Moreover, as of the adoption date, we recorded $2.6 million of lease-related capitalized costs to beginning retained earnings, net of tax, that did not meet the definition of initial direct costs in accordance with the new guidance. See Note 8 – “Leases” for additional discussion of our lease policies as well as additional disclosures related to our leases. |
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 to the customer and the risks and rewards of the product that we retain are minimal. The redemption of loyalty points under our Shoe Perks loyalty rewards program and redemptions of gift cards are accounted for as separate performance obligations. We adopted and applied the new revenue guidance in Accounting Standards Codification Topic No. 606 – Revenue from Contracts with Customers See Note 4 – “Revenue” for additional discussion of our revenue recognition policies as well as additional disclosures on revenue from contracts with customers. |
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. |
Cloud Computing Arrangements that are Service Contracts | Cloud Computing Arrangements that are Service Contracts We account for the costs to implement hosted cloud computing arrangements that are considered to be service contracts in current and noncurrent other assets. We capitalize these costs based on the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We amortize the costs over the related service contract period for the hosted arrangement. For fiscal 2019, the amortization of the implementation costs and the related service contract fees are included in selling, general and administrative expenses. |
Long-Lived Asset Impairment Testing | Long-Lived Asset Impairment Testing 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 is performed, at the lowest level for which there are identifiable cash flows, which is generally at a store level. Store level asset groupings typically include property and equipment and operating lease right-of-use assets. 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. If the operating lease right-of-use asset is impaired, we would amortize the remaining right-of-use asset on a straight-line basis over the remaining lease term. 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 estimates are derived from 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. We estimate the fair value of operating right-of-use assets using the market value of rents applicable to the leased asset, discounted using the remaining lease term. External factors, such as the local environment in which the store resides, including store traffic and competition, are evaluated in terms of their effect on sales trends. Changes in sales and operating income assumptions or unfavorable changes in external factors can significantly impact the estimated future cash flows. An increase or decrease in the projected cash flow can significantly decrease or increase the fair value of these assets, which may have an effect on the impairment recorded. 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. |
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. Self-insurance reserves include estimates of claims filed, carried at their expected ultimate settlement value, and claims incurred but not yet reported. These estimates take 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. As of February 1, 2020 and February 2, 2019, our self-insurance reserves totaled $2.7 million and $3.4 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. |
Consideration Received From a Vendor | Consideration Received From a Vendor Consideration is primarily received from merchandise vendors and 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 is recorded as a reduction of the price paid for the vendor’s products and recorded as a reduction of our cost of sales unless the consideration represents a reimbursement of a specific, incremental, identifiable cost; in such a scenario, it is recorded as an offset to the same financial statement line item. 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 consideration received be related to something other than the vendor’s product and such consideration received exceeds the incremental costs incurred, 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. |
Advertising Costs | Advertising Costs Print, television, radio, outdoor media, digital media and internal production costs are expensed when incurred. External production costs are expensed in the period the advertisement first takes place. Advertising expenses included in selling, general and administrative expenses were $40.0 million, $41.2 million and $40.1 million in fiscal years 2019, 2018 and 2017, respectively. |
Store Opening and Start-up Costs | Store Opening and Start-up Costs Non-capital expenditures, such as payroll, supplies and rent incurred prior to the opening of a new store, are charged to expense in the period they are incurred. Advertising related to new stores is expensed pursuant to the aforementioned advertising policy. |
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 units, restricted stock, stock appreciation rights, stock options 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 are a family footwear retailer that offers a broad assortment of moderately priced dress, casual and athletic footwear for men, women and children with emphasis on national name brands. We operate our business as one reportable segment based on the similar nature of products sold; merchandising, distribution, and marketing processes involved; target customers; and economic characteristics of our stores and e-commerce platform. Due to our multi-channel retailer strategy, we view 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 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. On December 22, 2017, the U.S. government enacted the U.S. Tax Cuts and Jobs Act (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 provided 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 in fiscal 2017, 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 determined that these provisions were the only provisions of the Tax Act that impacted fiscal 2017 results. In fiscal 2018 we filed our fiscal 2017 federal income tax return and completed our assessment of the final impact of the Tax Act and recorded an income tax benefit of $0.1 million. |
Net Income Per Share | Net Income Per Share The following table sets forth the computation of basic and diluted net income per share as shown on the face of the accompanying consolidated statements of income: Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 (In thousands, except per share data) Basic Net Income per Share: Net Income Shares Per Share Amount Net Income Shares Per Share Amount Net Income Shares Per Share Amount Net income $ 42,914 $ 38,135 $ 18,933 Amount allocated to participating securities (63 ) (152 ) (250 ) Net income available for basic common shares and basic net income per share $ 42,851 14,427 $ 2.97 $ 37,983 15,111 $ 2.51 $ 18,683 16,220 $ 1.15 Diluted Net Income per Share: Net income $ 42,914 $ 38,135 $ 18,933 Amount allocated to participating securities (63 ) (152 ) (250 ) Adjustment for dilutive potential common shares 1 259 4 388 0 7 Net income available for diluted common shares and diluted net income per share $ 42,852 14,686 $ 2.92 $ 37,987 15,499 $ 2.45 $ 18,683 16,227 $ 1.15 Our basic and diluted net income 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. 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Schedule of the Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share as shown on the face of the accompanying consolidated statements of income: Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 (In thousands, except per share data) Basic Net Income per Share: Net Income Shares Per Share Amount Net Income Shares Per Share Amount Net Income Shares Per Share Amount Net income $ 42,914 $ 38,135 $ 18,933 Amount allocated to participating securities (63 ) (152 ) (250 ) Net income available for basic common shares and basic net income per share $ 42,851 14,427 $ 2.97 $ 37,983 15,111 $ 2.51 $ 18,683 16,220 $ 1.15 Diluted Net Income per Share: Net income $ 42,914 $ 38,135 $ 18,933 Amount allocated to participating securities (63 ) (152 ) (250 ) Adjustment for dilutive potential common shares 1 259 4 388 0 7 Net income available for diluted common shares and diluted net income per share $ 42,852 14,686 $ 2.92 $ 37,987 15,499 $ 2.45 $ 18,683 16,227 $ 1.15 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value on a Recurring Basis | The following table presents financial instruments that are measured at fair value on a recurring basis at February 1, 2020 and February 2, 2019: Fair Value Measurements (In thousands) Level 1 Level 2 Level 3 Total As of February 1, 2020: Cash equivalents – money market mutual funds $ 48,080 $ 0 $ 0 $ 48,080 As of February 2, 2019: Cash equivalents – money market mutual funds $ 68,500 $ 0 $ 0 $ 68,500 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Revenue From Contract With Customer [Abstract] | |
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 2019, 2018 and 2017 are as follows: (In thousands) February 1, 2020 February 2, 2019 February 3, 2018 Non-Athletics: Women's $ 255,773 25 % $ 250,320 24 % $ 244,945 24 % Men's 149,075 14 144,628 14 141,295 14 Children's 54,707 5 51,963 5 50,255 5 Total 459,555 44 446,911 43 436,495 43 Athletics: Women's 175,298 17 179,411 18 177,627 17 Men's 210,157 20 215,796 21 219,224 22 Children's 139,625 14 138,686 14 138,074 14 Total 525,080 51 533,893 53 534,925 53 Accessories 48,402 5 45,100 4 43,606 4 Other 3,514 0 3,746 0 4,128 0 Total $ 1,036,551 100 % $ 1,029,650 100 % $ 1,019,154 100 % |
Property and Equipment and Ho_2
Property and Equipment and Hosted Cloud Computing Arrangements (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | The following is a summary of property and equipment: (In thousands) February 1, 2020 February 2, 2019 Land $ 1,564 $ 0 Buildings 6,636 0 Furniture, fixtures and equipment 153,198 156,596 Leasehold improvements 105,611 110,824 Total 267,009 267,420 Less accumulated depreciation and amortization (199,228 ) (196,815 ) Property and equipment – net $ 67,781 $ 70,605 |
Accrued and Other Liabilities (
Accrued and Other Liabilities (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued and Other Liabilities | Accrued and other liabilities consisted of the following: (In thousands) February 1, 2020 February 2, 2019 Employee compensation and benefits $ 7,687 $ 9,771 Self-insurance reserves 2,698 3,447 Gift cards 1,538 1,558 Sales and use tax 2,317 2,131 Other 4,455 5,162 Total accrued and other liabilities $ 18,695 $ 22,069 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Schedule of Lease Related Costs | Lease-related costs reported in our consolidated statements of income post adoption of ASC 842 were as follows: (In thousands) 2019 Operating lease cost $ 54,681 Variable lease costs CAM, property taxes and insurance 20,010 Percentage rent and other variable lease costs 1,637 Total $ 76,328 |
Schedule of Other Information Related to Leases | Other information related to leases post adoption of ASC 842, including supplemental cash flow information, consists of: (In thousands) 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 45,933 ROU assets obtained in exchange for operating lease liabilities $ 31,474 As of February 1, 2020 Weighted-average remaining lease term for operating leases (in years) 6.1 Weighted-average discount rate for operating leases 5.5 % |
Schedule of Rental Expense Under Operating Leases | The following table reconciles the undiscounted cash flows for each of the first five years and the total of the remaining years to the operating lease liabilities recognized pursuant to ASC 842 on the consolidated balance sheet as of February 1, 2020: (In thousands) Operating Leases 2020 $ 55,246 2021 55,358 2022 48,188 2023 41,592 2024 28,134 Thereafter to 2034 63,446 Total undiscounted lease payments 291,964 Less: Imputed interest 54,710 Total operating lease liabilities 237,254 Less: Current portion of operating lease liabilities 43,146 Long-term portion of operating lease liabilities $ $194,108 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision | The provision for income taxes consisted of: (In thousands) 2019 2018 2017 Current: Federal $ 6,799 $ 11,468 $ 14,579 State 2,175 1,693 2,241 Puerto Rico 241 700 242 Total current 9,215 13,861 17,062 Deferred: Federal 2,749 (894 ) 2,383 State 3 (745 ) (965 ) Puerto Rico 246 643 2,500 Total deferred 2,998 (996 ) 3,918 Valuation allowance (379 ) (643 ) (2,500 ) Total provision $ 11,834 $ 12,222 $ 18,480 |
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 2019 2018 2017 U.S. Federal statutory tax rate 21.0 % 21.0 % 33.7 % State and local income taxes, net of federal tax benefit 3.2 3.0 3.0 Puerto Rico 0.5 4.2 0.7 Valuation allowance (0.7 ) (1.3 ) (6.7 ) Tax effect of foreign losses 0.4 (2.7 ) 6.3 Remeasurement of deferred tax assets and liabilities due to the Tax Act 0.0 0.0 11.6 Excess tax benefit on stock-based compensation (3.6 ) 0.0 0.0 Other 0.8 0.1 0.8 Effective income tax rate 21.6 % 24.3 % 49.4 % |
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 1, 2020 February 2, 2019 Deferred tax assets: Lease obligations $ 57,891 $ 7,480 Accrued compensation 4,844 7,843 Inventory 938 787 Other 1,282 1,490 Total deferred tax assets 64,955 17,600 Valuation allowance (194 ) (574 ) Total deferred tax assets – net of valuation allowance 64,761 17,026 Deferred tax liabilities: Lease right-of-use assets 51,367 0 Property and equipment 4,711 6,484 Other 850 920 Total deferred tax liabilities 56,928 7,404 Long-term deferred income taxes, net $ 7,833 $ 9,622 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
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) 2019 2018 2017 Stock-based compensation expense before the recognized income tax benefit (1) $ 32 $ 31 $ 36 Income tax benefit $ 7 $ 8 $ 18 (1) Amounts are representative of the 15% discount employees are provided for purchases under the Stock Purchase Plan. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
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 2, 2019 825,281 $ 23.94 Granted 13,548 26.58 Vested (726,406 ) 23.94 Forfeited (44,988 ) 24.27 Restricted stock at February 1, 2020 67,435 $ 24.23 |
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 2, 2019 0 $ 0.00 Granted 43,900 34.95 Forfeited (700 ) 34.95 Exercised 0 0.00 Outstanding at February 1, 2020 43,200 $ 34.95 2.2 |
Schedule of SARs Assumptions | The fair value was estimated using a trinomial lattice model with the following assumptions: February 1, 2020 Risk free interest rate yield curve 1.30%-1.56 % Expected dividend yield 0.9 % Expected volatility 48.63 % Maximum life 2.2 Years Exercise multiple 1.29 Maximum payout $ 10.00 Employee exit rate 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 all share-settled equity awards (restricted stock awards, restricted stock units and performance stock units): (In thousands) 2019 2018 2017 Stock-based compensation expense before the recognized income tax benefit $ 6,226 $ 9,591 $ 5,041 Income tax benefit $ 1,346 $ 2,328 $ 2,490 |
Stock Appreciation Rights (SARs) [Member] | |
Summary of Stock Compensation Expense | The following table summarizes information regarding stock-based compensation recognized for SARs: (In thousands) 2019 2018 2017 Stock-based compensation before the recognized income tax effect $ 228 $ 540 $ (61 ) Income tax effect $ 49 $ 131 $ (30 ) |
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 2, 2019 202,667 $ 24.98 Granted 187,745 31.29 Vested (98,733 ) 24.54 Forfeited (28,544 ) 26.83 Restricted stock units and performance stock units at February 1, 2020 263,135 $ 29.44 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results | All fiscal quarters in 2019 and 2018 include results for 13 weeks. (In thousands, except per share data) Fiscal 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 253,810 $ 268,221 $ 274,645 $ 239,875 Gross profit 75,140 82,095 84,734 69,900 Operating income 15,608 15,674 18,150 4,777 Net income 13,873 11,832 13,726 3,483 Net income per share – Basic (1) $ 0.95 $ 0.81 $ 0.95 $ 0.25 Net income per share – Diluted (1) $ 0.91 $ 0.80 $ 0.94 $ 0.24 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 (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. |
Organization and Description _2
Organization and Description of Business (Narrative) (Details) | Feb. 01, 2020State |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of states in which entity operates | 35 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | Feb. 03, 2018 | Dec. 22, 2017 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Feb. 03, 2019 |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | ||||||
Cash and cash equivalents | $ 61,899 | $ 67,021 | ||||
Credit and debit card receivables | $ 10,000 | 8,200 | ||||
Term of contract | 15 years | |||||
Lease Expiration Year | 2034 | |||||
Operating Lease, Liability | $ 237,254 | $ 251,700 | ||||
Operating lease right-of-use assets | 215,007 | 0 | 25,800 | |||
Capital Lease Obligations | $ 2,600 | |||||
Self-insurance reserves | 2,698 | 3,447 | ||||
Advertising expenses | $ 40,000 | $ 41,200 | $ 40,100 | |||
U.S. Federal statutory tax rate | 35.00% | 21.00% | 21.00% | 33.70% | ||
Additional income tax expense (benefit) due to the Tax Act | $ 4,400 | $ (100) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Net Income per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |||||||||
Basic Net Income per Share: | |||||||||||||||||||
Net income | $ 3,483 | $ 13,726 | $ 11,832 | $ 13,873 | $ 1,359 | $ 12,046 | $ 11,775 | $ 12,955 | $ 42,914 | $ 38,135 | $ 18,933 | ||||||||
Amount allocated to participating securities | (63) | (152) | (250) | ||||||||||||||||
Net income available for basic common shares and basic net income per share | $ 42,851 | $ 37,983 | $ 18,683 | ||||||||||||||||
Net income available for diluted common shares and diluted net income per share, Shares | 14,427 | 15,111 | 16,220 | ||||||||||||||||
Net income per share - Basic | $ 0.25 | [1] | $ 0.95 | [1] | $ 0.81 | [1] | $ 0.95 | [1] | $ 0.09 | [1] | $ 0.80 | [1] | $ 0.77 | [1] | $ 0.83 | [1] | $ 2.97 | $ 2.51 | $ 1.15 |
Diluted Net Income per Share: | |||||||||||||||||||
Net income | $ 3,483 | $ 13,726 | $ 11,832 | $ 13,873 | $ 1,359 | $ 12,046 | $ 11,775 | $ 12,955 | $ 42,914 | $ 38,135 | $ 18,933 | ||||||||
Amount allocated to participating securities | (63) | (152) | (250) | ||||||||||||||||
Adjustment for dilutive potential common shares | $ 1 | $ 4 | $ 0 | ||||||||||||||||
Adjustment for dilutive potential common shares, Shares | 259 | 388 | 7 | ||||||||||||||||
Net income available for diluted common shares and diluted net income per share | $ 42,852 | $ 37,987 | $ 18,683 | ||||||||||||||||
Net income available for diluted common shares and diluted net income per share, Shares | 14,686 | 15,499 | 16,227 | ||||||||||||||||
Net income per share - Diluted | $ 0.24 | [1] | $ 0.94 | [1] | $ 0.80 | [1] | $ 0.91 | [1] | $ 0.09 | [1] | $ 0.76 | [1] | $ 0.76 | [1] | $ 0.83 | [1] | $ 2.92 | $ 2.45 | $ 1.15 |
[1] | Per share amounts are computed independently for each of the quarters presented. The sum of the quarters may not equal the total year due to the impact of changes in weighted shares outstanding and differing applications of earnings under the two-class method. |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Schedule of Financial Instruments Measure at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents – money market mutual funds | $ 48,080 | $ 68,500 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents – money market mutual funds | 48,080 | 68,500 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents – money market mutual funds | 0 | 0 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents – money market mutual funds | $ 0 | $ 0 |
Revenue (Schedule of Revenue Di
Revenue (Schedule of Revenue Disaggregation by Product Category) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 1,036,551 | $ 1,029,650 | $ 1,019,154 |
Non-Athletics [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 459,555 | 446,911 | 436,495 |
Non-Athletics [Member] | Women' s [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 255,773 | 250,320 | 244,945 |
Non-Athletics [Member] | Men' s [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 149,075 | 144,628 | 141,295 |
Non-Athletics [Member] | Children' s [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 54,707 | 51,963 | 50,255 |
Athletics [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 525,080 | 533,893 | 534,925 |
Athletics [Member] | Women' s [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 175,298 | 179,411 | 177,627 |
Athletics [Member] | Men' s [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 210,157 | 215,796 | 219,224 |
Athletics [Member] | Children' s [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 139,625 | 138,686 | 138,074 |
Accessories [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 48,402 | 45,100 | 43,606 |
Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 3,514 | $ 3,746 | $ 4,128 |
Sales Revenue Net [Member] | Geographic Concentration Risk [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 100.00% | 100.00% | 100.00% |
Sales Revenue Net [Member] | Geographic Concentration Risk [Member] | Non-Athletics [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 44.00% | 43.00% | 43.00% |
Sales Revenue Net [Member] | Geographic Concentration Risk [Member] | Non-Athletics [Member] | Women' s [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 25.00% | 24.00% | 24.00% |
Sales Revenue Net [Member] | Geographic Concentration Risk [Member] | Non-Athletics [Member] | Men' s [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 14.00% | 14.00% | 14.00% |
Sales Revenue Net [Member] | Geographic Concentration Risk [Member] | Non-Athletics [Member] | Children' s [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 5.00% | 5.00% | 5.00% |
Sales Revenue Net [Member] | Geographic Concentration Risk [Member] | Athletics [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 51.00% | 53.00% | 53.00% |
Sales Revenue Net [Member] | Geographic Concentration Risk [Member] | Athletics [Member] | Women' s [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 17.00% | 18.00% | 17.00% |
Sales Revenue Net [Member] | Geographic Concentration Risk [Member] | Athletics [Member] | Men' s [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 20.00% | 21.00% | 22.00% |
Sales Revenue Net [Member] | Geographic Concentration Risk [Member] | Athletics [Member] | Children' s [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 14.00% | 14.00% | 14.00% |
Sales Revenue Net [Member] | Geographic Concentration Risk [Member] | Accessories [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 5.00% | 4.00% | 4.00% |
Sales Revenue Net [Member] | Geographic Concentration Risk [Member] | Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 0.00% | 0.00% | 0.00% |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Revenue From Contract With Customer [Abstract] | ||
Refund liabilities | $ 718,000 | $ 600,000 |
Return assets | 500,000 | 410,000 |
Contract liabilities associated with unredeemed gift cards | 1,500,000 | 1,600,000 |
Breakage revenue | 143,000 | 179,000 |
Net sales associated with loyalty rewards | 2,400,000 | 1,500,000 |
Contract liabilities associated with loyalty rewards | $ 679,000 | $ 245,000 |
Property and Equipment and Ho_3
Property and Equipment and Hosted Cloud Computing Arrangements (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 267,009 | $ 267,420 |
Less accumulated depreciation and amortization | (199,228) | (196,815) |
Property and equipment – net | 67,781 | 70,605 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 1,564 | 0 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 6,636 | 0 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 153,198 | 156,596 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 105,611 | $ 110,824 |
Property and Equipment and Ho_4
Property and Equipment and Hosted Cloud Computing Arrangements (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Long-lived assets, impairment charges | $ 1,200,000 | $ 0 | $ 5,100,000 |
Remaining unamortized basis | 0 | $ 4,700,000 | |
Total gross capitalized cost | 8,100,000 | 1,200,000 | |
Accumulated amortization | 122,000 | $ 0 | |
Total amortization expense | 122,000 | ||
Other Current Assets [Member] | |||
Capitalized cost, net of accumulated amortization | 713,000 | ||
Other Noncurrent Assets [Member] | |||
Capitalized cost, net of accumulated amortization | $ 7,300,000 |
Accrued and Other Liabilities_2
Accrued and Other Liabilities (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Payables And Accruals [Abstract] | ||
Employee compensation and benefits | $ 7,687 | $ 9,771 |
Self-insurance reserves | 2,698 | 3,447 |
Gift cards | 1,538 | 1,558 |
Sales and use tax | 2,317 | 2,131 |
Other | 4,455 | 5,162 |
Total accrued and other liabilities | $ 18,695 | $ 22,069 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | Mar. 27, 2017 | Feb. 01, 2020 |
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing amount | $ 50 | |
Line of credit increased from time to time | $ 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% |
Schedule of Lease Related Costs
Schedule of Lease Related Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Leases [Abstract] | |||
Operating lease cost | $ 54,681 | ||
Variable lease costs | |||
CAM, property taxes and insurance | 20,010 | ||
Percentage rent and other variable lease costs | 1,637 | ||
Total | $ 76,328 | $ 61,200 | $ 66,900 |
Schedule of Other Information R
Schedule of Other Information Related to Leases (Details) $ in Thousands | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 45,933 |
ROU assets obtained in exchange for operating lease liabilities | $ 31,474 |
Weighted-average remaining lease term for operating leases (in years) | 6 years 1 month 6 days |
Weighted-average discount rate for operating leases | 5.50% |
Undiscounted Cash Flows to Oper
Undiscounted Cash Flows to Operating Lease Liabilities on Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 03, 2019 | Feb. 02, 2019 |
Leases [Abstract] | |||
2020 | $ 55,246 | ||
2021 | 55,358 | ||
2022 | 48,188 | ||
2023 | 41,592 | ||
2024 | 28,134 | ||
Thereafter to 2034 | 63,446 | ||
Total undiscounted lease payments | 291,964 | ||
Less: Imputed interest | 54,710 | ||
Total operating lease liabilities | 237,254 | $ 251,700 | |
Current portion of operating lease liabilities | 43,146 | $ 0 | |
Long-term portion of operating lease liabilities | $ 194,108 | $ 0 |
Lease - Additional Information
Lease - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Leases [Abstract] | |||
Future minimum lease payments in 2019 | $ 60,800 | ||
Future minimum lease payments in 2020 | 51,900 | ||
Future minimum lease payments in 2021 | 50,700 | ||
Future minimum lease payments in 2022 | 41,500 | ||
Future minimum lease payments in 2023 | 34,000 | ||
Future minimum lease payments thereafter to 2031 | 56,400 | ||
Future minimum lease payments | 295,300 | ||
Lease expense | $ 76,328 | $ 61,200 | $ 66,900 |
Income Taxes (Schedule of the P
Income Taxes (Schedule of the Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Current: | |||
Federal | $ 6,799 | $ 11,468 | $ 14,579 |
State | 2,175 | 1,693 | 2,241 |
Puerto Rico | 241 | 700 | 242 |
Total current | 9,215 | 13,861 | 17,062 |
Deferred: | |||
Federal | 2,749 | (894) | 2,383 |
State | 3 | (745) | (965) |
Puerto Rico | 246 | 643 | 2,500 |
Total deferred | 2,998 | (996) | 3,918 |
Valuation allowance | (379) | (643) | (2,500) |
Total provision | $ 11,834 | $ 12,222 | $ 18,480 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
Tax benefit from options exercised and restricted stock vesting | $ 1,900,000 | $ 26,100 | $ 17,800 |
Federal employment related tax credits | 263,000 | 310,000 | $ 223,000 |
Valuation Allowance | 194,000 | $ 574,000 | |
Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 350,000 | ||
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) | Dec. 22, 2017 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Income Tax Disclosure [Abstract] | ||||
U.S. Federal statutory tax rate | 35.00% | 21.00% | 21.00% | 33.70% |
State and local income taxes, net of federal tax benefit | 3.20% | 3.00% | 3.00% | |
Puerto Rico | 0.50% | 4.20% | 0.70% | |
Valuation allowance | (0.70%) | (1.30%) | (6.70%) | |
Tax effect of foreign losses | 0.40% | (2.70%) | 6.30% | |
Remeasurement of deferred tax assets and liabilities due to the Tax Act | 0.00% | 0.00% | 11.60% | |
Excess tax benefit on stock-based compensation | (3.60%) | 0.00% | 0.00% | |
Other | 0.80% | 0.10% | 0.80% | |
Effective income tax rate | 21.60% | 24.30% | 49.40% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Income Tax Assets/Liabilities) (Details) - USD ($) | Feb. 01, 2020 | Feb. 02, 2019 |
Deferred tax assets: | ||
Lease obligations | $ 57,891,000 | $ 7,480,000 |
Accrued compensation | 4,844,000 | 7,843,000 |
Inventory | 938,000 | 787,000 |
Other | 1,282,000 | 1,490,000 |
Total deferred tax assets | 64,955,000 | 17,600,000 |
Valuation allowance | (194,000) | (574,000) |
Total deferred tax assets – net of valuation allowance | 64,761,000 | 17,026,000 |
Deferred tax liabilities: | ||
Lease right-of-use assets | 51,367,000 | 0 |
Property and equipment | 4,711,000 | 6,484,000 |
Other | 850,000 | 920,000 |
Total deferred tax liabilities | 56,928,000 | 7,404,000 |
Long-term deferred income taxes, net | $ 7,833,000 | $ 9,622,000 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions charged to expense | $ 818,000 | $ 754,000 | $ 751,000 |
Shares of common stock reserved for issuance | 650,000 | ||
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 | 7,000 | 10,000 |
Proceeds from issuance of shares under plan | $ 182,000 | $ 177,000 | $ 205,000 |
Shares of unissued common stock reserved for future purchase | 70,000 | ||
Compensation (income) expense | $ 2,000,000 | 154,000,000 | $ 1,800,000 |
Total deferred compensation liability | $ 13,900,000 | $ 12,100,000 | |
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% | ||
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% |
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. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense before the recognized income tax benefit | [1] | $ 32 | $ 31 | $ 36 |
Income tax benefit | $ 7 | $ 8 | $ 18 | |
[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. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
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 | ||||
May 04, 2019$ / shares | Nov. 03, 2018USD ($) | Apr. 28, 2015$ / shares | Feb. 01, 2020USD ($)Vesting_period$ / sharesshares | Feb. 02, 2019USD ($)$ / shares | Feb. 03, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares of unissued common stock reserved for future purchase | shares | 1,000,000 | |||||
Shares of common stock reserved for issuance | shares | 650,000 | |||||
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 units and restricted stock awards typically are granted under one of four vesting periods: (a) one-third of the shares would vest on each of the first three 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. | |||||
Restricted Stock Units and Performance Stock Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair value of stock awards vested during period | $ | $ 2,400,000 | $ 26,000 | ||||
Units vested in period | shares | 98,733 | 0 | ||||
Weighted average grant date fair value of awards | $ / shares | $ 31.29 | $ 25.05 | $ 19.55 | |||
Unrecognized share-based compensation expense | $ | $ 3,000,000 | |||||
Unrecognized compensation cost, recognition period | 8 months 12 days | |||||
Granted | $ / shares | $ 31.29 | $ 25.05 | $ 19.55 | |||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair value of stock awards vested during period | $ | $ 17,400,000 | $ 1,300,000 | $ 3,500,000 | |||
Units vested in period | shares | 726,406 | |||||
Weighted average grant date fair value of awards | $ / shares | $ 26.58 | $ 32.74 | $ 24.09 | |||
Cumulative share based compensation expense | $ | $ 2,200,000 | |||||
Stock-based compensation expense for restricted stock | $ | $ 9,600,000 | |||||
Granted | $ / shares | 26.58 | $ 32.74 | $ 24.09 | |||
Stock Appreciation Rights (SARs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value of awards | $ / shares | $ 6.37 | |||||
Unrecognized share-based compensation expense | $ | $ 47,000 | |||||
Unrecognized compensation cost, recognition period | 2 months 12 days | |||||
Defined maximum gain | $ / shares | $ 10 | $ 10 | $ 10 | |||
Exercise price | $ / shares | $ 34.95 | $ 24.26 | ||||
Granted | $ / shares | $ 6.37 | |||||
Equity Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total intrinsic value of stock options , exercised | $ | $ 127,000 | |||||
Total cash received | $ | $ 54,000 | |||||
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 (Summa
Stock-Based Compensation (Summary of Restricted Stock Awards Transactions) (Details) - $ / shares | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Restricted Stock Units and Performance Stock Units [Member] | |||
Number of Shares | |||
Outstanding at February 2, 2019 | 202,667 | ||
Granted | 187,745 | ||
Vested | (98,733) | 0 | |
Forfeited | (28,544) | ||
Outstanding at February1, 2020 | 263,135 | 202,667 | |
Weighted-Average Grant Date Fair Value | |||
Outstanding at February 2, 2019 | $ 24.98 | ||
Granted | 31.29 | $ 25.05 | $ 19.55 |
Vested | 24.54 | ||
Forfeited | 26.83 | ||
Outstanding at February1, 2020 | $ 29.44 | $ 24.98 | |
Restricted Stock [Member] | |||
Number of Shares | |||
Outstanding at February 2, 2019 | 825,281 | ||
Granted | 13,548 | ||
Vested | (726,406) | ||
Forfeited | (44,988) | ||
Outstanding at February1, 2020 | 67,435 | 825,281 | |
Weighted-Average Grant Date Fair Value | |||
Outstanding at February 2, 2019 | $ 23.94 | ||
Granted | 26.58 | $ 32.74 | $ 24.09 |
Vested | 23.94 | ||
Forfeited | 24.27 | ||
Outstanding at February1, 2020 | $ 24.23 | $ 23.94 |
Stock-Based Compensation (Sched
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. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
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 | $ 6,226 | $ 9,591 | $ 5,041 |
Income tax benefit | 1,346 | 2,328 | 2,490 |
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 | 228 | 540 | (61) |
Income tax benefit | $ 49 | $ 131 | $ (30) |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of SARs Activity) (Details) - Stock Appreciation Rights (SARs) [Member] | 12 Months Ended |
Feb. 01, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at February 2, 2019 | shares | 0 |
Granted | shares | 43,900 |
Forfeited | shares | (700) |
Exercised | shares | 0 |
Outstanding at February 1, 2020 | shares | 43,200 |
Outstanding at February 2, 2019 | $ / shares | $ 0 |
Granted | $ / shares | 34.95 |
Forfeited | $ / shares | 34.95 |
Exercised | $ / shares | 0 |
Outstanding at February 1, 2020 | $ / shares | $ 34.95 |
Outstanding at February 1, 2020 | 2 years 2 months 12 days |
Stock Based Compensation (Sched
Stock Based Compensation (Schedule of SARs Assumptions) (Details) - Stock Appreciation Rights (SARs) [Member] - $ / shares | 3 Months Ended | 12 Months Ended | |
May 04, 2019 | Apr. 28, 2015 | Feb. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate yield curve, minimum | 1.30% | ||
Risk free interest rate yield curve, maximum | 1.56% | ||
Expected dividend yield | 0.90% | ||
Expected volatility | 48.63% | ||
Maximum life | 2 years 2 months 12 days | ||
Exercise multiple | $ 1.29 | ||
Maximum payout | $ 10 | $ 10 | $ 10 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee exit rate | 2.20% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee exit rate | 9.00% |
Share Repurchase Plan (Narrativ
Share Repurchase Plan (Narrative) (Details) - USD ($) | Dec. 12, 2019 | Dec. 31, 2018 | Feb. 01, 2020 | Dec. 31, 2019 | Feb. 02, 2019 | Feb. 03, 2018 |
Equity [Abstract] | ||||||
Share repurchase program, authorized amount | $ 50,000,000 | $ 50,000,000 | ||||
Share repurchase program, expiration date | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Share repurchase program, shares purchased | 184,000 | 933,000 | 1,529,000 | 1,259,000 | ||
Share repurchase program, purchased amount | $ 6,900,000 | $ 30,900,000 | $ 46,000,000 | $ 29,800,000 | ||
Share repurchase program, available for future repurchases | $ 43,100,000 |
Business Risk (Narrative) (Deta
Business Risk (Narrative) (Details) - Supplier Concentration Risk [Member] - Sales Revenue Net [Member] | 12 Months Ended |
Feb. 01, 2020 | |
Product Information [Line Items] | |
Concentration Risk, Percentage | 41.00% |
Nike, Inc. [Member] | |
Product Information [Line Items] | |
Concentration Risk, Percentage | 30.00% |
Skechers USA, Inc. [Member] | |
Product Information [Line Items] | |
Concentration Risk, Percentage | 11.00% |
Quarterly Results (Unaudited)_2
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Net sales | $ 239,875 | $ 274,645 | $ 268,221 | $ 253,810 | $ 234,658 | $ 269,181 | $ 268,366 | $ 257,445 | |||||||||||
Gross profit | 69,900 | 84,734 | 82,095 | 75,140 | 66,666 | 81,218 | 83,781 | 77,327 | $ 311,869 | $ 308,992 | $ 296,269 | ||||||||
Operating income | 4,777 | 18,150 | 15,674 | 15,608 | 1,497 | 16,016 | 14,931 | 17,316 | 54,209 | 49,760 | 37,701 | ||||||||
Net income | $ 3,483 | $ 13,726 | $ 11,832 | $ 13,873 | $ 1,359 | $ 12,046 | $ 11,775 | $ 12,955 | $ 42,914 | $ 38,135 | $ 18,933 | ||||||||
Net income per share – Basic | $ 0.25 | [1] | $ 0.95 | [1] | $ 0.81 | [1] | $ 0.95 | [1] | $ 0.09 | [1] | $ 0.80 | [1] | $ 0.77 | [1] | $ 0.83 | [1] | $ 2.97 | $ 2.51 | $ 1.15 |
Net income per share – Diluted | $ 0.24 | [1] | $ 0.94 | [1] | $ 0.80 | [1] | $ 0.91 | [1] | $ 0.09 | [1] | $ 0.76 | [1] | $ 0.76 | [1] | $ 0.83 | [1] | $ 2.92 | $ 2.45 | $ 1.15 |
[1] | Per share amounts are computed independently for each of the quarters presented. The sum of the quarters may not equal the total year due to the impact of changes in weighted shares outstanding and differing applications of earnings under the two-class method. |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - $ / shares | 1 Months Ended | |||
Mar. 18, 2020 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Subsequent Event [Line Items] | ||||
Dividend declared, amount per share | $ 0.335 | $ 0.315 | $ 0.295 | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividend declared, date declared | Mar. 18, 2020 | |||
Dividend declared, amount per share | $ 0.085 | |||
Dividend declared, payment date | Apr. 20, 2020 | |||
Dividend declared, record date | Apr. 6, 2020 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 600 | $ 231 | $ 202 | |
Charged to Cost and Expenses | 105,549 | 110,314 | 102,701 | |
Credited to Costs and Expenses | 105,431 | 110,420 | 102,672 | |
Balance at End of Period | $ 718 | 600 | 231 | |
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. |