Cover Page
Cover Page - shares | 3 Months Ended | |
May 02, 2020 | Jun. 05, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 2, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-20969 | |
Entity Registrant Name | HIBBETT SPORTS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-8159608 | |
Entity Address, Address Line One | 2700 Milan Court | |
Entity Address, City or Town | Birmingham | |
Entity Address, State or Province | AL | |
Entity Address, Postal Zip Code | 35211 | |
City Area Code | 205 | |
Local Phone Number | 942-4292 | |
Title of 12(b) Security | Common Stock, $0.01 Par Value Per Share | |
Trading Symbol | HIBB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,532,357 | |
Entity Central Index Key | 0001017480 | |
Current Fiscal Year End Date | --01-30 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | May 02, 2020 | Feb. 01, 2020 | May 04, 2019 |
Current Assets: | |||
Cash and cash equivalents | $ 106,205 | $ 66,078 | $ 116,963 |
Receivables, net | 20,003 | 8,477 | 8,284 |
Inventories, net | 241,984 | 288,011 | 248,548 |
Other current assets | 12,302 | 9,946 | 12,995 |
Total current assets | 380,494 | 372,512 | 386,790 |
Property and equipment, net | 97,771 | 100,956 | 107,673 |
Operating right-of-use assets | 219,436 | 229,155 | 224,870 |
Finance right-of-use assets, net | 2,548 | 2,250 | 2,228 |
Goodwill | 0 | 19,661 | 19,661 |
Tradename intangible asset | 23,500 | 32,400 | 32,400 |
Deferred income taxes, net | 11,429 | 8,996 | 3,216 |
Other assets, net | 3,391 | 3,829 | 3,868 |
Total Assets | 738,569 | 769,759 | 780,706 |
Current Liabilities: | |||
Accounts payable | 98,149 | 131,662 | 105,834 |
Operating lease liabilities | 66,791 | 60,649 | 66,268 |
Credit facilities | 50,000 | 0 | 26,000 |
Finance lease obligations | 876 | 886 | 973 |
Accrued payroll expenses | 6,359 | 20,530 | 7,322 |
Other accrued expenses | 21,473 | 19,934 | 15,604 |
Total current liabilities | 243,648 | 233,661 | 222,001 |
Operating lease liabilities | 185,035 | 190,699 | 188,839 |
Finance lease obligations | 1,994 | 1,704 | 1,777 |
Unrecognized tax benefits | 954 | 955 | 1,370 |
Other liabilities | 2,371 | 13,757 | 9,537 |
Total liabilities | 434,002 | 440,776 | 423,524 |
Stockholders' Investment: | |||
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued | 0 | 0 | 0 |
Common stock, $0.01 par value, 80,000,000 shares authorized, 39,255,293, 39,140,575 and 39,100,509 shares issued at May 2, 2020, February 1, 2020 and May 4, 2019, respectively | 393 | 391 | 391 |
Paid-in capital | 190,260 | 188,879 | 186,462 |
Retained earnings | 769,315 | 784,942 | 785,454 |
Treasury stock, at cost; 22,739,229, 22,280,316 and 20,945,674 shares repurchased at May 2, 2020, February 1, 2020 and May 4, 2019, respectively | (655,401) | (645,229) | (615,125) |
Total stockholders' investment | 304,567 | 328,983 | 357,182 |
Total Liabilities and Stockholders' Investment | $ 738,569 | $ 769,759 | $ 780,706 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | May 02, 2020 | Feb. 01, 2020 | May 04, 2019 |
Statement of Financial Position [Abstract] | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 39,255,293 | 39,140,575 | 39,100,509 |
Treasury stock, shares at cost (in shares) | 22,739,229 | 22,280,316 | 20,945,674 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 269,837,000 | $ 343,295,000 |
Cost of goods sold | 195,690,000 | 224,692,000 |
Gross margin | 74,147,000 | 118,603,000 |
Store operating, selling and administrative expenses | 69,673,000 | 74,038,000 |
Goodwill impairment | 19,661,000 | 0 |
Depreciation and amortization | 6,870,000 | 7,223,000 |
Operating (loss) income | (22,057,000) | 37,342,000 |
Interest income, net | 170,000 | 46,000 |
(Loss) income before provision for income taxes | (22,227,000) | 37,296,000 |
(Benefit) provision for income taxes | (6,940,000) | 9,439,000 |
Net (loss) income | $ (15,287,000) | $ 27,857,000 |
Basic (loss) earnings per share (in dollars per share) | $ (0.92) | $ 1.52 |
Diluted (loss) earnings per share (in dollars per share) | $ (0.92) | $ 1.50 |
Weighted average shares outstanding: | ||
Basic (in shares) | 16,546 | 18,308 |
Weighted-average shares used in diluted computations | 16,546 | 18,535 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Cash Flows From Operating Activities: | ||
Net (loss) income | $ (15,287) | $ 27,857 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,870 | 7,223 |
Stock-based compensation | 1,217 | 507 |
Impairment charges | 32,648 | 0 |
Contingent earnout valuation | (10,980) | 600 |
Other non-cash adjustments to net income | (2,914) | 3,622 |
Changes in operating assets and liabilities: | ||
Inventories, net | 46,027 | 30,783 |
Receivables, net | (11,866) | 2,131 |
Accounts payable | (33,513) | (1,481) |
Other assets and liabilities | (8,320) | 816 |
Net cash provided by operating activities | 3,882 | 72,058 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (4,059) | (2,469) |
Other, net | 612 | (54) |
Net cash used in investing activities | (3,447) | (2,523) |
Cash Flows From Financing Activities: | ||
Proceeds under credit facilities | 115,918 | 0 |
Repayments under credit facilities | (65,918) | (9,000) |
Cash used for stock repurchases | (9,748) | (4,799) |
Net payments on finance lease obligations | (301) | (242) |
Proceeds from options exercised and purchase of shares under the employee stock purchase plan | 165 | 203 |
Other, net | (424) | (490) |
Net cash provided by (used in) financing activities | 39,692 | (14,328) |
Net increase in cash and cash equivalents | 40,127 | 55,207 |
Cash and cash equivalents, beginning of period | 66,078 | 61,756 |
Cash and cash equivalents, end of period | $ 106,205 | $ 116,963 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Stockholders Investment - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |||
May 02, 2020 | May 04, 2019 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance-beginning of period | $ 328,983 | $ 336,049 | ||
Net (loss) income | (15,287) | 27,857 | ||
Issuance of shares through the Company's equity plans | 166 | 204 | ||
Adjustments for adoption of accounting standard | (340) | [1] | (2,080) | [2] |
Purchase of shares under the stock repurchase program | (9,748) | (4,799) | ||
Settlement of net share equity awards | (424) | (556) | ||
Stock-based compensation | 1,217 | 507 | ||
Balance-end of period | $ 304,567 | $ 357,182 | ||
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance-beginning of period (in shares) | 39,141 | 38,983 | ||
Balance-beginning of period | $ 391 | $ 390 | ||
Issuance of shares through the Company's equity plans (in shares) | 114 | 118 | ||
Issuance of shares through the Company's equity plans | $ 2 | $ 1 | ||
Balance-end of period (in shares) | 39,255 | 39,101 | ||
Balance-end of period | $ 393 | $ 391 | ||
Paid-In Capital | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance-beginning of period | 188,879 | 185,752 | ||
Issuance of shares through the Company's equity plans | 164 | 203 | ||
Stock-based compensation | 1,217 | 507 | ||
Balance-end of period | 190,260 | 186,462 | ||
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance-beginning of period | 784,942 | 759,677 | ||
Net (loss) income | (15,287) | 27,857 | ||
Adjustments for adoption of accounting standard | (340) | [1] | (2,080) | [2] |
Balance-end of period | $ 769,315 | $ 785,454 | ||
Treasury Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance-beginning of period (in shares) | 22,280 | 20,686 | ||
Balance-beginning of period | $ (645,229) | $ (609,770) | ||
Purchase of shares under the stock repurchase program (in shares) | 428 | 230 | ||
Purchase of shares under the stock repurchase program | $ (9,748) | $ (4,799) | ||
Settlement of net share equity awards (in shares) | 31 | 29 | ||
Settlement of net share equity awards | $ (424) | $ (556) | ||
Balance-end of period (in shares) | 22,739 | 20,945 | ||
Balance-end of period | $ (655,401) | $ (615,125) | ||
[1] | Adoption of Accounting Standards Update (ASU) No. 2016-13, Topic 326, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments . See Note 2, Recent Accounting Pronouncements , in this Quarterly Report on Form 10-Q. | |||
[2] | Adoption of ASU 2016-02, Topic 842, Leases . See Note 2, Recent Accounting Pronouncements , in our Annual Report on Form 10-K filed on April 16, 2020. |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 3 Months Ended |
May 02, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Accounting Policies | Basis of Presentation and Accounting Policies The accompanying unaudited condensed consolidated financial statements of Hibbett Sports, Inc. and its wholly-owned subsidiaries (including the condensed consolidated balance sheet as of February 1, 2020, which has been derived from audited financial statements) have been prepared in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP) for interim financial information and are presented in accordance with the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. References to “we,” “our,” “us” and the “Company” refer to Hibbett Sports, Inc. and its subsidiaries as well as its predecessors. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2020 filed on April 16, 2020. The unaudited condensed consolidated financial statements have been prepared on a basis consistent in all material respects with the accounting policies described in our 2020 Annual Report and reflect all adjustments of a normal recurring nature that are, in management’s opinion, necessary for the fair presentation of the results of operations, financial position and cash flows for the periods presented. Impact of the Novel Coronavirus (COVID-19) COVID-19 was declared a global pandemic by the World Health Organization on March 11, 2020 and has led to adverse impacts on the U.S. and global economies. The outbreak of COVID-19 and related measures to quell the outbreak have impacted our inventory supply chain, operations and customer demand. The Company’s stores and distribution centers have continued to operate where permitted by governmental jurisdictions during the COVID-19 pandemic, and the Company is committed to maintaining a safe work and shopping environment. The COVID-19 pandemic could further affect the Company's operations and the operations of its suppliers and vendors as a result of continuing shelter-in-place orders, restrictions and limitations on travel, limitations on store or facility operations up to and including closures, and other governmental, business or consumer actions. The extent to which the COVID-19 pandemic will impact the Company’s operations, liquidity or financial results in subsequent periods is uncertain, but such impact could be material. Property and Equipment Property and equipment are recorded at cost. Finance lease assets are shown as right-of-use (ROU) assets and are excluded from property and equipment ( see Note 3, Leases ). Property and equipment as of May 2, 2020, February 1, 2020 and May 4, 2019 consists of the following (in thousands): May 2, February 1, May 4, Land $ 7,277 $ 7,277 $ 7,277 Buildings 21,635 21,635 21,311 Equipment 96,606 95,100 96,003 Furniture and fixtures 36,931 37,048 37,225 Leasehold improvements 103,642 102,528 101,540 Construction in progress 603 1,660 1,485 Total property and equipment 266,694 265,248 264,841 Less: accumulated depreciation and amortization 168,923 164,292 157,168 Total property and equipment, net $ 97,771 $ 100,956 $ 107,673 Revenue Recognition We recognize revenue in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers, when control of the merchandise is transferred to our customer. Sales are recorded net of expected returns at the time the customer takes possession of the merchandise. Net sales exclude sales taxes because we are a pass-through conduit for collecting and remitting these taxes. Retail Store Sales : For merchandise sold in our stores, revenue is recognized at the point of sale when tender is accepted and the customer takes possession of the merchandise. Retail Store Orders : Retail store customers may order merchandise available in other retail store locations for pickup in the selling store at a later date. Customers make a deposit with the remaining balance due at pickup. These deposits are recorded as deferred revenue until the transaction is completed and the customer takes possession of the merchandise. Retail store customers may also order merchandise to be shipped to home. Payment is received in full at the time of order and recorded as deferred revenue until delivery. Layaways : We offer a retail store program giving customers the option of paying a deposit and placing merchandise on layaway. The customer may make further payments in installments, but the full purchase price must be received by us within 30 days. The payments are recorded as deferred revenue until the transaction is completed and the customer takes possession of the merchandise. Digital Channel Sales : For merchandise shipped to home, customer payment is received when the order ships. Revenue is deferred until control passes to the customer at delivery. Shipping and handling costs billed to customers are included in net sales. We offer an extended payment option through a third party who assumes all credit risk. On these orders, payment is received by us when the order ships and revenue is recorded when the product is delivered to the customer. Loyalty Program : We offer the Hibbett Rewards program whereby upon registration and in accordance with the terms of the program, customers earn points on certain purchases. Points convert into rewards at defined thresholds. The short-term future performance obligation liability is estimated at each reporting period based on historical conversion and redemption patterns. The liability is included in other accrued expenses on our unaudited condensed consolidated balance sheets and was $2.3 million, $2.7 million and $2.3 million at May 2, 2020, February 1, 2020 and May 4, 2019, respectively. Gift Cards : Proceeds received from the issuance of our non-expiring gift cards are initially recorded as deferred revenue. Revenue is subsequently recognized at the time the customer redeems the gift cards and takes possession of the merchandise. Unredeemed gift cards are recorded in accounts payable on our unaudited condensed consolidated balance sheets. The net deferred revenue liability for gift cards, customer orders and layaways at May 2, 2020, February 1, 2020 and May 4, 2019 was $13.2 million, $7.7 million and $7.5 million, respectively, and is recognized in accounts payable on our unaudited condensed consolidated balance sheets. Gift card breakage income is recognized in net sales in proportion to the redemption pattern of rights exercised by the customer and was not material in any period presented. During the 13-weeks ended May 2, 2020 and May 4, 2019, $0.5 million and $0.8 million of gift card deferred revenue from prior periods was realized, respectively. Return Sales : The liability for return sales is estimated at each reporting period based on historical return patterns and is recognized at the transaction price. The liability is included in accounts payable on our unaudited condensed consolidated balance sheets. The return asset and corresponding adjustment to cost of goods sold for our right to recover the merchandise returned by the customer is immaterial. Revenues disaggregated by major product categories are as follows (in thousands): 13-Weeks Ended May 2, May 4, Footwear $ 166,242 $ 215,075 Apparel 79,407 79,557 Equipment 24,188 48,663 Total $ 269,837 $ 343,295 Goodwill and Indefinite-Lived Intangible Assets Goodwill and the City Gear tradename are indefinite-lived assets which are not amortized but rather tested for impairment at least annually, or on an interim basis if events and circumstances have occurred that indicate that it is more likely than not that an asset is impaired. Such events or circumstances could include, but are not limited to, significant negative industry or economic trends, unanticipated changes in the competitive environment and a significant sustained decline in the market price of our stock. If it is more likely than not than an asset is impaired, the amount that the carrying value exceeds the fair value is recorded as an impairment charge to current income. Due to the macroeconomic impact of the COVID-19 pandemic, we determined that indicators of potential impairment were present during the 13-weeks ended May 2, 2020. As a result, we performed interim impairment testing on goodwill and the City Gear tradename as of April 15, 2020, using updated assumptions around prospective financial information, growth rates, discount rates applied to future cash flows, and comparable multiples from publicly traded companies in our industry. In valuing goodwill, we use a combination of the Discounted Cash Flow methodology and the Guideline Public Company methodology which require assumptions related to future cash flows, discount rate and comparable public company entities. In the 13-weeks ended May 2, 2020, we determined that goodwill of our City Gear reporting unit was fully impaired and recognized a non-cash impairment charge of $19.7 million. No impairment related to goodwill was recognized during the year ended February 1, 2020 or the 13-weeks ended May 4, 2019. (in thousands) Goodwill balance at February 1, 2020 $ 19,661 Impairment losses (19,661) Goodwill balance at May 2, 2020 $ — In valuing the tradename intangible, we use the Relief from Royalty method which requires assumptions related to future revenues, royalty rate and discount rate. In the 13-weeks ended May 2, 2020, we determined that the City Gear tradename was partially impaired and recognized a non-cash impairment charge of $8.9 million in store operating, selling and administrative expenses on our unaudited condensed consolidated statement of operations. No impairment related to the tradename was recognized during the year ended February 1, 2020 or the 13-weeks ended May 4, 2019. (in thousands) Tradename intangible asset balance at February 1, 2020 $ 32,400 Impairment losses (8,900) Tradename intangible asset balance at May 2, 2020 $ 23,500 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
May 02, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Standards that were adopted We adopted Financial Accounting Standard Board (FASB) ASU 2016-13, Topic 326, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which revised the measurement of credit losses for financial assets measured at amortized cost from an incurred loss methodology to an expected loss methodology. Historical experience, current economic conditions and reasonable supportable forecasts are considered in establishing an allowance for credit losses which is shown on the unaudited condensed consolidated balance sheet in receivables, net. The adoption of ASU-2016-03 did not have a material impact on our unaudited condensed consolidated financial statements. We adopted ASU 2017-04, Topic 350 , Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment , which is intended to simplify the subsequent measurement of goodwill. The amendments in ASU 2017-04 modify the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. Goodwill impairment is no longer determined by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities, as if that reporting unit had been acquired in a business combination. As a result, we will measure impairment using the difference between the carrying amount and the fair value of the reporting unit, if required. Standards that are not yet adopted We continuously monitor and review all current accounting pronouncements and standards from the FASB of U.S. GAAP for applicability to our operations. As of May 2, 2020, there were no other new pronouncements or interpretations that had or were expected to have a significant impact on our operations. |
Leases
Leases | 3 Months Ended |
May 02, 2020 | |
Leases [Abstract] | |
Leases | Leases We lease all of our retail store locations; nearly all of which are operating leases. Store leases typically provide for initial terms of five • scheduled increases in rent payments over the lease term, • tenant inducements, • free rent periods, • contingent rent based on net sales in excess of stipulated amounts, • one or more renewal options at our discretion, and • payments for common area maintenance, insurance and real estate taxes, most of which are variable in nature. Most of our store leases contain provisions that allow for early termination between the third and fifth year of the term if predetermined sales levels are not met, or upon the occurrence of other specified contingent events. When we have the option to extend the lease term (including by not exercising an available termination option) or purchase the leased asset, and it is reasonably certain that we will do so, we consider these options in determining the classification and measurement of the lease. However, generally at lease commencement, it is not reasonably certain that we will exercise an extension or purchase option. For contingent termination provisions, we generally consider both the likelihood of the contingency occurring in addition to the economic factors we consider when assessing any other termination or renewal option. We also lease certain office space, office equipment and transportation equipment under operating and finance leases. Generally, these leases have initial terms of two We determine whether a contract is or contains a lease at contract inception. We have lease agreements that contain both lease and non-lease components. For store leases, we account for the lease components together with the non-lease components, such as common area maintenance. For office and transportation equipment leases, we separate the non-lease components from the lease components. In April 2020, the Financial Accounting Standards Board (FASB) issued a staff question-and-answer document (Staff Q&A) to respond to some frequently asked questions about accounting for lease concessions related to the effects of the COVID-19 pandemic. Under current U.S. GAAP, subsequent changes to lease payments that are not stipulated in the original lease are generally accounted for as lease modifications under ASC Topic 842, Leases . The Staff Q&A grants relief by allowing companies to make an accounting policy election to not evaluate lease concessions related to the effects of the COVID-19 pandemic as lease modifications. We did not elect to utilize this alternative accounting. Our lease agreements do not contain material residual value guarantees or material restrictive covenants. ROU lease assets are periodically reviewed for impairment losses. The Company uses the long-lived assets impairment guidance in ASC Subtopic 360-10, Property, Plant, and Equipment - Overall , to determine when to test ROU assets (or asset groups that contain one or more ROU assets) for impairment, whether ROU assets are impaired, and if so, the amount of the impairment loss to recognize. An asset group impairment charge of approximately $4.1 million and $1.1 million was recognized in the 13-weeks ended May 2, 2020 and May 4, 2019, respectively. Store operating lease cost and logistics-related transportation equipment operating lease cost are included in cost of goods sold in the unaudited condensed consolidated statements of operations. Office equipment and other transportation equipment operating lease cost is included in store operating, selling and administrative expenses in the unaudited condensed consolidated statements of operations. 13-weeks ended May 2, 2020 May 4, 2019 Operating lease cost $ 17,139 $ 17,138 Finance lease cost: Amortization of assets 235 237 Interest on lease liabilities 48 65 Variable lease cost (1,208) 385 $ 16,214 $ 17,825 Short-term lease cost is immaterial. Finance right-of-use assets on the unaudited condensed consolidated balance sheet at May 2, 2020, February 1, 2020 and May 4, 2019 are shown net of accumulated amortization of $1.0 million, $0.8 million and $0.2 million, respectively. The following table provides supplemental balance sheet information related to leases: May 2, February 1, May 4, Weighted average remaining lease term (in years): Operating leases 5 5 5 Finance leases 4 4 4 Weighted average discount rate: Operating leases 3.9 % 4.1 % 4.2 % Finance leases 7.6 % 8.8 % 11.6 % The following table provides supplemental cash flow and other information related to leases (in thousands): Cash paid for amounts included in the measurement of lease liabilities: 13-weeks ended May 2, 2020 May 4, 2019 Operating cash flows from operating leases $ 19,724 $ 17,269 Operating cash flows from finance leases $ 48 $ 65 Financing cash flows from finance leases $ 301 $ 242 ROU assets obtained in exchange for lease liabilities, net Operating leases $ 9,524 $ 10,142 Finance leases $ 533 $ — Maturities of lease liabilities as of May 2, 2020 (in thousands): Operating Finance Total Remainder of Fiscal 2021 $ 57,757 $ 840 $ 58,597 Fiscal 2022 65,452 740 66,192 Fiscal 2023 50,045 707 50,752 Fiscal 2024 35,575 597 36,172 Fiscal 2025 25,043 178 25,221 Thereafter 43,039 169 43,208 Total minimum lease payments 276,911 3,231 280,142 Less amount representing interest 25,085 361 25,446 $ 251,826 $ 2,870 $ 254,696 As of May 2, 2020, we have entered into operating leases of approximately $0.9 million related to future store locations that have not yet commenced. |
Leases | Leases We lease all of our retail store locations; nearly all of which are operating leases. Store leases typically provide for initial terms of five • scheduled increases in rent payments over the lease term, • tenant inducements, • free rent periods, • contingent rent based on net sales in excess of stipulated amounts, • one or more renewal options at our discretion, and • payments for common area maintenance, insurance and real estate taxes, most of which are variable in nature. Most of our store leases contain provisions that allow for early termination between the third and fifth year of the term if predetermined sales levels are not met, or upon the occurrence of other specified contingent events. When we have the option to extend the lease term (including by not exercising an available termination option) or purchase the leased asset, and it is reasonably certain that we will do so, we consider these options in determining the classification and measurement of the lease. However, generally at lease commencement, it is not reasonably certain that we will exercise an extension or purchase option. For contingent termination provisions, we generally consider both the likelihood of the contingency occurring in addition to the economic factors we consider when assessing any other termination or renewal option. We also lease certain office space, office equipment and transportation equipment under operating and finance leases. Generally, these leases have initial terms of two We determine whether a contract is or contains a lease at contract inception. We have lease agreements that contain both lease and non-lease components. For store leases, we account for the lease components together with the non-lease components, such as common area maintenance. For office and transportation equipment leases, we separate the non-lease components from the lease components. In April 2020, the Financial Accounting Standards Board (FASB) issued a staff question-and-answer document (Staff Q&A) to respond to some frequently asked questions about accounting for lease concessions related to the effects of the COVID-19 pandemic. Under current U.S. GAAP, subsequent changes to lease payments that are not stipulated in the original lease are generally accounted for as lease modifications under ASC Topic 842, Leases . The Staff Q&A grants relief by allowing companies to make an accounting policy election to not evaluate lease concessions related to the effects of the COVID-19 pandemic as lease modifications. We did not elect to utilize this alternative accounting. Our lease agreements do not contain material residual value guarantees or material restrictive covenants. ROU lease assets are periodically reviewed for impairment losses. The Company uses the long-lived assets impairment guidance in ASC Subtopic 360-10, Property, Plant, and Equipment - Overall , to determine when to test ROU assets (or asset groups that contain one or more ROU assets) for impairment, whether ROU assets are impaired, and if so, the amount of the impairment loss to recognize. An asset group impairment charge of approximately $4.1 million and $1.1 million was recognized in the 13-weeks ended May 2, 2020 and May 4, 2019, respectively. Store operating lease cost and logistics-related transportation equipment operating lease cost are included in cost of goods sold in the unaudited condensed consolidated statements of operations. Office equipment and other transportation equipment operating lease cost is included in store operating, selling and administrative expenses in the unaudited condensed consolidated statements of operations. 13-weeks ended May 2, 2020 May 4, 2019 Operating lease cost $ 17,139 $ 17,138 Finance lease cost: Amortization of assets 235 237 Interest on lease liabilities 48 65 Variable lease cost (1,208) 385 $ 16,214 $ 17,825 Short-term lease cost is immaterial. Finance right-of-use assets on the unaudited condensed consolidated balance sheet at May 2, 2020, February 1, 2020 and May 4, 2019 are shown net of accumulated amortization of $1.0 million, $0.8 million and $0.2 million, respectively. The following table provides supplemental balance sheet information related to leases: May 2, February 1, May 4, Weighted average remaining lease term (in years): Operating leases 5 5 5 Finance leases 4 4 4 Weighted average discount rate: Operating leases 3.9 % 4.1 % 4.2 % Finance leases 7.6 % 8.8 % 11.6 % The following table provides supplemental cash flow and other information related to leases (in thousands): Cash paid for amounts included in the measurement of lease liabilities: 13-weeks ended May 2, 2020 May 4, 2019 Operating cash flows from operating leases $ 19,724 $ 17,269 Operating cash flows from finance leases $ 48 $ 65 Financing cash flows from finance leases $ 301 $ 242 ROU assets obtained in exchange for lease liabilities, net Operating leases $ 9,524 $ 10,142 Finance leases $ 533 $ — Maturities of lease liabilities as of May 2, 2020 (in thousands): Operating Finance Total Remainder of Fiscal 2021 $ 57,757 $ 840 $ 58,597 Fiscal 2022 65,452 740 66,192 Fiscal 2023 50,045 707 50,752 Fiscal 2024 35,575 597 36,172 Fiscal 2025 25,043 178 25,221 Thereafter 43,039 169 43,208 Total minimum lease payments 276,911 3,231 280,142 Less amount representing interest 25,085 361 25,446 $ 251,826 $ 2,870 $ 254,696 As of May 2, 2020, we have entered into operating leases of approximately $0.9 million related to future store locations that have not yet commenced. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
May 02, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We utilize a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows: Level I – Quoted prices in active markets for identical assets or liabilities. Level II – Observable inputs other than quoted prices included in Level I. Level III – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The table below segregates all financial assets and financial liabilities that are measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value as of May 2, 2020, February 1, 2020 and May 4, 2019 (in thousands): May 2, 2020 February 1, 2020 May 4, 2019 Level I Level II Level III Level I Level II Level III Level I Level II Level III Short-term investments $ 468 $ — $ — $ 554 $ — $ — $ 199 $ — $ — Long-term investments 1,844 — — 2,208 — — 2,499 — — Short-term contingent earnout — — 10,000 — — 9,958 — — — Long-term contingent earnout — — 77 — — 11,099 — — 6,600 Total investments $ 2,312 $ — $ 10,077 $ 2,762 $ — $ 21,057 $ 2,698 $ — $ 6,600 Short-term investments are reported in other current assets on our unaudited condensed consolidated balance sheets. Long-term investments are reported in other assets on our unaudited condensed consolidated balance sheets. Short-term contingent earnout is reported in other accrued expenses on our unaudited condensed consolidated balance sheets. Long-term contingent earnout is reported in other liabilities on our unaudited condensed consolidated balance sheets. |
Debt
Debt | 3 Months Ended |
May 02, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt In October 2018, we entered into amended agreements with Bank of America, N.A. and Regions Bank providing for an aggregate amount of credit available to us under each line of credit of $50.0 million for the purpose of financing a portion of the cash purchase price payable in the acquisition of City Gear. The terms of the Bank of America facility allowed for borrowings up to $50.0 million with an interest rate agreed upon between the lender and us at the time a loan is made. The terms of the Regions Bank facility allowed for borrowings up to $50.0 million with an interest rate at one-month LIBOR plus 1.5%. Both facilities were unsecured, due on demand and set to expire in October 2021. Under the provisions of both facilities, we did not pay commitment fees. However, both were subject to negative pledge agreements that, among other things, restricted liens or transfers of assets including inventory, tangible or intangible personal property and land and land improvements. In March 2020, we borrowed $50.0 million under these credit agreements as a precautionary measure in order to increase our cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the COVID-19 pandemic. The proceeds from such borrowings were used for working capital, capital expenditures and general corporate purposes. On April 16, 2020, we entered into the Second Amended and Restated Note with Regions Bank (Amended Credit Facility) that provides for an aggregate amount of credit available to us of $75.0 million. The Amended Credit Facility supersedes the Regions Bank credit agreement dated October 2018, matures April 19, 2021, and is secured by all assets of the Company with the exception of real property. Simultaneous to the execution of the Amended Credit Facility, the $50.0 million outstanding under the previous credit agreements were paid in full, the Bank of America credit agreement dated October 2018 was terminated and we incurred borrowings under the Amended Credit Facility of $50.0 million. Borrowings under the Amended Credit Facility bear interest at the one-month LIBOR rate plus 2.5% from April 16, 2020 through October 16, 2020 and the one-month LIBOR rate plus 3.0% from October 17, 2020 through the maturity date. There were no origination fees and we do not pay any commitment fees. The Amended Credit Facility includes a loan fee of $50,000 payable to Regions Bank at the maturity date or if the agreement is terminated prior to the maturity date for any reason including due to an event of default. The loan fee will be waived if the Amended Credit Facility is terminated due to refinancing of the loan with an asset-based loan facility provided by Regions Bank. The Amended Credit Facility has one financial covenant which requires us to maintain inventory with a minimum value of $150.0 million at all times (measured at the lower of cost or market consistent with generally accepted accounting principles). As of May 2, 2020, we were in compliance with this covenant. The Amended Credit Facility also restricts us from engaging in certain acquisitions and from incurring indebtedness, other than certain customary permitted indebtedness related to business operations. There were 58 days during the 13-weeks ended May 2, 2020, where we incurred borrowings against all credit facilities for an average and maximum borrowing of $38.7 million and $50.0 million, respectively. The average interest rate during the 13-weeks ended May 2, 2020 was 3.22%. At May 2, 2020, a total of $25.0 million was available to us from the Amended Credit Facility. There were 331 days during the 52-weeks ended February 1, 2020, where we incurred borrowings against these credit facilities for an average and maximum borrowing of $21.5 million and $38.0 million, respectively, and an average interest rate of 3.73%. There were 91 days during the 13-weeks ended May 4, 2019 where we incurred borrowings against these credit facilities for an average and maximum borrowing of $30.9 million and $35.0 million, respectively, and an average interest rate of 4.00%. On June 5, 2020, we entered into a Note Modification Agreement that extends the maturity date of the Amended Credit Facility from April 19, 2021 to July 18, 2021. No other provisions of the Amended Credit Facility were affected. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
May 02, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The compensation costs that have been charged against income for the 13-weeks ended May 2, 2020 and May 4, 2019 were as follows (in thousands): 13-Weeks Ended May 2, May 4, Stock-based compensation expense by type: Stock options $ 90 $ 92 Restricted stock units 1,060 363 Employee stock purchases 44 29 Director deferred compensation 23 23 Total stock-based compensation expense 1,217 507 Income tax benefit recognized 391 113 Stock-based compensation expense, net of income tax $ 826 $ 394 Expense for restricted stock units is shown net of forfeitures of $0.3 million and $1.3 million for the 13-weeks ended May 2, 2020 and May 4, 2019, respectively. In the 13-weeks ended May 2, 2020 and May 4, 2019, we granted the following equity awards: 13-Weeks Ended May 2, May 4, Stock options 27,000 16,798 Restricted stock unit awards 334,485 191,021 Performance-based restricted stock unit awards — 34,300 Deferred stock units 2,143 1,027 At May 2, 2020, the total compensation costs related to unvested restricted stock unit awards not yet recognized was $7.9 million and the weighted-average period over which such awards are expected to be recognized was 2.9 years. There were no compensation costs related to unvested stock options at May 2, 2020. Under the 2012 Non-Employee Director Equity Plan (2012 Plan), no shares of our common stock were awarded during the 13-weeks ended May 2, 2020. A total of 13,858 shares of our common stock were awarded during the 13-weeks ended May 4, 2019, as part of the annual equity award to directors in the first quarter. During the 13-weeks ended May 2, 2020 and May 4, 2019, 27,000 and 16,798 stock options were granted, respectively. The weighted-average grant date fair value of stock options granted during the 13-weeks ended May 2, 2020 and May 4, 2019 was $3.33 and $5.46 per share, respectively. The number of shares purchased, the average price per share and the weighted-average grant date fair value of shares purchased through our employee stock purchase plan were as follows: 13-Weeks Ended May 2, May 4, Shares purchased 17,758 9,925 Average price per share $ 9.29 $ 12.16 Weighted average fair value at grant date $ 4.21 $ 3.14 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
May 02, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computation of basic earnings per share (EPS) is based on the number of weighted average common shares outstanding during the period. The computation of diluted EPS is based on the weighted average number of shares outstanding plus the incremental shares that would be outstanding assuming exercise of dilutive stock options and issuance of restricted stock. The number of incremental shares is calculated by applying the treasury stock method. The following table sets forth the weighted average common shares outstanding (in thousands): 13-Weeks Ended May 2, May 4, Weighted-average shares used in basic computations 16,546 18,308 Dilutive equity awards — 227 Weighted-average shares used in diluted computations 16,546 18,535 For the 13-weeks ended May 2, 2020, all stock-based awards were excluded from the computation of diluted weighted-average common shares and common share equivalents outstanding because of their anti-dilutive effect. For the 13-weeks ended May 4, 2019, we excluded 253,142 options from the computation of diluted weighted-average common shares and common share equivalents outstanding because of their anti-dilutive effect. During periods of net income, we exclude anti-dilutive stock-based awards granted to certain employees from the computation of diluted weighted-average common shares and common share equivalents outstanding because they are subject to certain performance-based annual vesting conditions which had not been achieved by period end. During periods of net loss, no effect is given for anti-dilutive options or unvested stock awards. |
Stock Repurchase Activity
Stock Repurchase Activity | 3 Months Ended |
May 02, 2020 | |
Treasury Stock Transactions, Excluding Value of Shares Reissued [Abstract] | |
Stock Repurchase Activity | Stock Repurchase Activity In November 2018, the Board of Directors (Board) authorized the extension of our Stock Repurchase Program (Program) in the amount of $300.0 million to repurchase our common stock through Jan. 29, 2022. The Program authorizes repurchases of our common stock in open market or negotiated transactions, with the amount and timing of repurchases dependent on market conditions and at the discretion of our management. In addition to the Program, we also acquire shares of our common stock from holders of restricted stock unit awards to satisfy tax withholding requirements due at vesting. Shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements do not reduce the Program authorization. During the 13-weeks ended May 2, 2020, we repurchased 428,018 shares of our common stock under a 10b5-1 plan at a cost of $9.7 million under the Program and acquired 30,895 shares from holders of restricted stock unit awards to satisfy tax |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
May 02, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Annual Bonuses and Equity Incentive Awards. Specified officers and corporate employees of our Company are eligible to receive annual bonuses, based on measures of Company operating performance. For Fiscal 2021, the Compensation Committee of our Board again based the short-term cash incentive on earnings before interest and taxes (EBIT) for Fiscal 2021 but in light of the COVID-19 pandemic, the Compensation Committee expects that adjustments to the set goal will be made in its discretion. Annual bonus related expenses included in accrued payroll expenses on our unaudited condensed consolidated balance sheets was $0.9 million, $8.7 million and $1.5 million at May 2, 2020, February 1, 2020 and May 4, 2019, respectively. In addition, the Compensation Committee of the Board has placed performance criteria on awards of restricted stock units (PSUs) to our “named executive officers” as determined in accordance with Item 402(a) of Regulation S-K. The performance criteria are tied to performance targets with respect to future return on invested capital and earnings before interest and taxes over a specified period of time. These PSUs are expensed under the provisions of ASC Topic 718, Compensation – Stock Compensation, and are evaluated each quarter to determine the probability that the performance conditions set within will be met. Due to the current macroeconomic environment and unprecedented disruption caused by the COVID-19 pandemic, the resulting significant global market decline, and its effect on the value of our common stock, the Compensation Committee decided to make adjustments to the compensation structure for Fiscal 2021. For Fiscal 2021 only, equity awards to executive officers were service-based only, with no performance criteria. Legal Proceedings and Other Contingencies. If we believe that a loss is both probable and estimable for a particular matter, the loss is accrued in accordance with the requirements of ASC Topic 450, Contingencies . No material amounts were accrued at May 2, 2020, February 1, 2020 or May 4, 2019 pertaining to legal proceedings or other contingencies. |
Income Taxes
Income Taxes | 3 Months Ended |
May 02, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which we operate. For interim financial reporting, we estimate the annual effective tax rate based on expected taxable income or loss for the full year and record a quarterly income tax provision (benefit) in accordance with the anticipated annual effective rate and adjust for discrete items. We update the estimates of the taxable income or loss throughout the year as new information becomes available, including year-to-date financial results. This process often results in a change to our expected effective tax rate for the year. When this occurs, we adjust the income tax provision (benefit) during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the expected annual effective tax rate. We apply the provisions of ASC Subtopic 740-10 in accounting for uncertainty in income taxes. In accordance with ASC Subtopic 740-10, we recognize a tax benefit associated with an uncertain tax position when, in our judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, we initially and subsequently measure the tax benefit as the largest amount that we judge to have a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority. Our liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances, such as the progress of tax audits, case law developments and new or emerging legislation. Such adjustments are recognized entirely in the period in which they are identified. Our effective tax rate includes the net impact of changes in the liability for unrecognized tax benefits and subsequent adjustments as considered appropriate by management. At May 2, 2020, we had a liability of $1.0 million associated with unrecognized tax benefits. We file income tax returns in U.S. federal and various state jurisdictions. Generally, we are not subject to changes in income taxes by the U.S. federal taxing jurisdiction for years prior to Fiscal 2017 or by most state taxing jurisdictions for years prior to Fiscal 2016. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted on March 27, 2020. The CARES Act includes, among other things, refundable payroll tax credits, deferral of employer-side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, and |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
May 02, 2020 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions The Company leases one store under a lease arrangement with AL Florence Realty Holdings 2010, LLC, a wholly owned subsidiary of Books-A-Million, Inc. (BAMM). One of our Directors, Terrance G. Finley is an executive officer of BAMM. Minimum annual lease payments are $0.1 million, if not in co-tenancy, and the lease termination date is February 2022. Minimum lease payments remaining under this lease at May 2, 2020 and May 4, 2019 were $0.2 million and $0.3 million, respectively. The Company honored certain contracts in place for its wholly owned subsidiary, City Gear, LLC, upon acquisition. The following listing represents those contracts of which Michael E. Longo, the Company's President and CEO, has an interest in, either directly or indirectly: Memphis Logistics Group (MLG) MLG provides logistics and warehousing services to City Gear. Mr. Longo owns a majority interest in MLG and the existing contract is effective through June 2020. The supply chain and logistic transition is currently in the planning stages. In the 13-weeks ended May 2, 2020 and May 4, 2019 payments to MLG under the contract were $1.7 million and $2.0 million, respectively. The amount outstanding to MLG at May 2, 2020, February 1, 2020 and May 4, 2019 was $0.2 million, $0.5 million and $0.4 million, respectively, and is included in accounts payable on our unaudited condensed consolidated balance sheets. T.I.G. Construction (TIG) TIG historically performed the majority of new store and store remodel construction for City Gear and is owned by a close relative of Mr. Longo. These functions are currently being transitioned to the Company's property management department. For the 13-weeks ended May 2, 2020 and May 4, 2019, payments to TIG for its services were $0.7 million and $0.4 million, respectively. The amount outstanding to TIG at May 2, 2020, February 1, 2020 and May 4, 2019 was $0.2 million, $0.1 million and $0.2 million, respectively, and is included in accounts payable on our unaudited condensed consolidated balance sheets. Merchant's Capital (MC) Merchant's Capital owned the office building where City Gear had its corporate offices in Memphis, Tennessee. Mr. Longo is a 33.3% partner in MC. The initial lease term ended on December 31, 2019 but was extended to April 30, 2020 to allow for the transition of City Gear's corporate office to the Company's Birmingham, Alabama headquarters. In the 13-weeks ended May 2, 2020 and May 4, 2019, minimum lease payments to MC were $51.2 thousand. There were no minimum lease payments remaining under this lease at May 2, 2020. There were no amounts outstanding to MC at May 2, 2020, February 1, 2020 or May 4, 2019. In addition to the related party interests listed above, Mr. Longo also has a membership interest in the Earnout discussed in Note 4 - Fair Value of Financial Instruments . Pursuant to the Membership Interest and Warrant Purchase Agreement dated October 29, 2018 and based on Fiscal 2020 financial results, original members and warrant holders of City Gear are entitled to the first Earnout payment of $10.0 million, which was paid on June 1, 2020. Mr. Longo is entitled to approximately 22.8% of any Earnout payment or up to $2.3 million of the initial Earnout payment. If the maximum remaining Earnout payment of $15.0 million is earned based on Fiscal 2021 financial results, Mr. Longo would be entitled up to an additional $4.4 million payable in Fiscal 2022. |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies (Policies) | 3 Months Ended |
May 02, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Finance lease assets are shown as right-of-use (ROU) assets and are excluded from property and equipment ( see Note 3, Leases |
Revenue Recognition | Revenue Recognition We recognize revenue in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers, when control of the merchandise is transferred to our customer. Sales are recorded net of expected returns at the time the customer takes possession of the merchandise. Net sales exclude sales taxes because we are a pass-through conduit for collecting and remitting these taxes. Retail Store Sales : For merchandise sold in our stores, revenue is recognized at the point of sale when tender is accepted and the customer takes possession of the merchandise. Retail Store Orders : Retail store customers may order merchandise available in other retail store locations for pickup in the selling store at a later date. Customers make a deposit with the remaining balance due at pickup. These deposits are recorded as deferred revenue until the transaction is completed and the customer takes possession of the merchandise. Retail store customers may also order merchandise to be shipped to home. Payment is received in full at the time of order and recorded as deferred revenue until delivery. Layaways : We offer a retail store program giving customers the option of paying a deposit and placing merchandise on layaway. The customer may make further payments in installments, but the full purchase price must be received by us within 30 days. The payments are recorded as deferred revenue until the transaction is completed and the customer takes possession of the merchandise. Digital Channel Sales : For merchandise shipped to home, customer payment is received when the order ships. Revenue is deferred until control passes to the customer at delivery. Shipping and handling costs billed to customers are included in net sales. We offer an extended payment option through a third party who assumes all credit risk. On these orders, payment is received by us when the order ships and revenue is recorded when the product is delivered to the customer. Loyalty Program : We offer the Hibbett Rewards program whereby upon registration and in accordance with the terms of the program, customers earn points on certain purchases. Points convert into rewards at defined thresholds. The short-term future performance obligation liability is estimated at each reporting period based on historical conversion and redemption patterns. The liability is included in other accrued expenses on our unaudited condensed consolidated balance sheets and was $2.3 million, $2.7 million and $2.3 million at May 2, 2020, February 1, 2020 and May 4, 2019, respectively. Gift Cards : Proceeds received from the issuance of our non-expiring gift cards are initially recorded as deferred revenue. Revenue is subsequently recognized at the time the customer redeems the gift cards and takes possession of the merchandise. Unredeemed gift cards are recorded in accounts payable on our unaudited condensed consolidated balance sheets. The net deferred revenue liability for gift cards, customer orders and layaways at May 2, 2020, February 1, 2020 and May 4, 2019 was $13.2 million, $7.7 million and $7.5 million, respectively, and is recognized in accounts payable on our unaudited condensed consolidated balance sheets. Gift card breakage income is recognized in net sales in proportion to the redemption pattern of rights exercised by the customer and was not material in any period presented. During the 13-weeks ended May 2, 2020 and May 4, 2019, $0.5 million and $0.8 million of gift card deferred revenue from prior periods was realized, respectively. Return Sales : The liability for return sales is estimated at each reporting period based on historical return patterns and is recognized at the transaction price. The liability is included in accounts payable on our unaudited condensed consolidated balance sheets. The return asset and corresponding adjustment to cost of goods sold for our right to recover the merchandise returned by the customer is immaterial. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets Goodwill and the City Gear tradename are indefinite-lived assets which are not amortized but rather tested for impairment at least annually, or on an interim basis if events and circumstances have occurred that indicate that it is more likely than not that an asset is impaired. Such events or circumstances could include, but are not limited to, significant negative industry or economic trends, unanticipated changes in the competitive environment and a significant sustained decline in the market price of our stock. If it is more likely than not than an asset is impaired, the amount that the carrying value exceeds the fair value is recorded as an impairment charge to current income. Due to the macroeconomic impact of the COVID-19 pandemic, we determined that indicators of potential impairment were present during the 13-weeks ended May 2, 2020. As a result, we performed interim impairment testing on goodwill and the City Gear tradename as of April 15, 2020, using updated assumptions around prospective financial information, growth rates, discount rates applied to future cash flows, and comparable multiples from publicly traded companies in our industry. |
Recent Accounting Pronouncements | Standards that were adopted We adopted Financial Accounting Standard Board (FASB) ASU 2016-13, Topic 326, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which revised the measurement of credit losses for financial assets measured at amortized cost from an incurred loss methodology to an expected loss methodology. Historical experience, current economic conditions and reasonable supportable forecasts are considered in establishing an allowance for credit losses which is shown on the unaudited condensed consolidated balance sheet in receivables, net. The adoption of ASU-2016-03 did not have a material impact on our unaudited condensed consolidated financial statements. We adopted ASU 2017-04, Topic 350 , Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment , which is intended to simplify the subsequent measurement of goodwill. The amendments in ASU 2017-04 modify the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. Goodwill impairment is no longer determined by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities, as if that reporting unit had been acquired in a business combination. As a result, we will measure impairment using the difference between the carrying amount and the fair value of the reporting unit, if required. Standards that are not yet adopted We continuously monitor and review all current accounting pronouncements and standards from the FASB of U.S. GAAP for applicability to our operations. As of May 2, 2020, there were no other new pronouncements or interpretations that had or were expected to have a significant impact on our operations. |
Basis of Presentation and Acc_3
Basis of Presentation and Accounting Policies (Tables) | 3 Months Ended |
May 02, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Property and Equipment | Property and equipment as of May 2, 2020, February 1, 2020 and May 4, 2019 consists of the following (in thousands): May 2, February 1, May 4, Land $ 7,277 $ 7,277 $ 7,277 Buildings 21,635 21,635 21,311 Equipment 96,606 95,100 96,003 Furniture and fixtures 36,931 37,048 37,225 Leasehold improvements 103,642 102,528 101,540 Construction in progress 603 1,660 1,485 Total property and equipment 266,694 265,248 264,841 Less: accumulated depreciation and amortization 168,923 164,292 157,168 Total property and equipment, net $ 97,771 $ 100,956 $ 107,673 |
Schedule of Revenue Recognition | Revenues disaggregated by major product categories are as follows (in thousands): 13-Weeks Ended May 2, May 4, Footwear $ 166,242 $ 215,075 Apparel 79,407 79,557 Equipment 24,188 48,663 Total $ 269,837 $ 343,295 |
Schedule of Goodwill | (in thousands) Goodwill balance at February 1, 2020 $ 19,661 Impairment losses (19,661) Goodwill balance at May 2, 2020 $ — |
Schedule of Impaired Intangible Assets | No impairment related to the tradename was recognized during the year ended February 1, 2020 or the 13-weeks ended May 4, 2019. (in thousands) Tradename intangible asset balance at February 1, 2020 $ 32,400 Impairment losses (8,900) Tradename intangible asset balance at May 2, 2020 $ 23,500 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
May 02, 2020 | |
Leases [Abstract] | |
Schedule of Lease Cost | 13-weeks ended May 2, 2020 May 4, 2019 Operating lease cost $ 17,139 $ 17,138 Finance lease cost: Amortization of assets 235 237 Interest on lease liabilities 48 65 Variable lease cost (1,208) 385 $ 16,214 $ 17,825 |
Schedule of Supplemental Information Related to Leases | The following table provides supplemental balance sheet information related to leases: May 2, February 1, May 4, Weighted average remaining lease term (in years): Operating leases 5 5 5 Finance leases 4 4 4 Weighted average discount rate: Operating leases 3.9 % 4.1 % 4.2 % Finance leases 7.6 % 8.8 % 11.6 % The following table provides supplemental cash flow and other information related to leases (in thousands): Cash paid for amounts included in the measurement of lease liabilities: 13-weeks ended May 2, 2020 May 4, 2019 Operating cash flows from operating leases $ 19,724 $ 17,269 Operating cash flows from finance leases $ 48 $ 65 Financing cash flows from finance leases $ 301 $ 242 ROU assets obtained in exchange for lease liabilities, net Operating leases $ 9,524 $ 10,142 Finance leases $ 533 $ — |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of May 2, 2020 (in thousands): Operating Finance Total Remainder of Fiscal 2021 $ 57,757 $ 840 $ 58,597 Fiscal 2022 65,452 740 66,192 Fiscal 2023 50,045 707 50,752 Fiscal 2024 35,575 597 36,172 Fiscal 2025 25,043 178 25,221 Thereafter 43,039 169 43,208 Total minimum lease payments 276,911 3,231 280,142 Less amount representing interest 25,085 361 25,446 $ 251,826 $ 2,870 $ 254,696 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
May 02, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value | The table below segregates all financial assets and financial liabilities that are measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value as of May 2, 2020, February 1, 2020 and May 4, 2019 (in thousands): May 2, 2020 February 1, 2020 May 4, 2019 Level I Level II Level III Level I Level II Level III Level I Level II Level III Short-term investments $ 468 $ — $ — $ 554 $ — $ — $ 199 $ — $ — Long-term investments 1,844 — — 2,208 — — 2,499 — — Short-term contingent earnout — — 10,000 — — 9,958 — — — Long-term contingent earnout — — 77 — — 11,099 — — 6,600 Total investments $ 2,312 $ — $ 10,077 $ 2,762 $ — $ 21,057 $ 2,698 $ — $ 6,600 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
May 02, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Compensation Costs | The compensation costs that have been charged against income for the 13-weeks ended May 2, 2020 and May 4, 2019 were as follows (in thousands): 13-Weeks Ended May 2, May 4, Stock-based compensation expense by type: Stock options $ 90 $ 92 Restricted stock units 1,060 363 Employee stock purchases 44 29 Director deferred compensation 23 23 Total stock-based compensation expense 1,217 507 Income tax benefit recognized 391 113 Stock-based compensation expense, net of income tax $ 826 $ 394 |
Schedule of Equity Awards Granted | In the 13-weeks ended May 2, 2020 and May 4, 2019, we granted the following equity awards: 13-Weeks Ended May 2, May 4, Stock options 27,000 16,798 Restricted stock unit awards 334,485 191,021 Performance-based restricted stock unit awards — 34,300 Deferred stock units 2,143 1,027 |
Schedule of Shares Purchased | The number of shares purchased, the average price per share and the weighted-average grant date fair value of shares purchased through our employee stock purchase plan were as follows: 13-Weeks Ended May 2, May 4, Shares purchased 17,758 9,925 Average price per share $ 9.29 $ 12.16 Weighted average fair value at grant date $ 4.21 $ 3.14 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
May 02, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table sets forth the weighted average common shares outstanding (in thousands): 13-Weeks Ended May 2, May 4, Weighted-average shares used in basic computations 16,546 18,308 Dilutive equity awards — 227 Weighted-average shares used in diluted computations 16,546 18,535 |
Basis of Presentation and Acc_4
Basis of Presentation and Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
May 02, 2020 | May 04, 2019 | Feb. 01, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Period allowed for entire purchase price for merchandise placed on layaway | 30 days | ||
Liability included in other accrued expenses | $ 2,300,000 | $ 2,300,000 | $ 2,700,000 |
Goodwill impairment | 19,661,000 | 0 | 0 |
Impairment of intangible assets | 8,900,000 | 0 | 0 |
Gift cards, customer orders and layaways | |||
Disaggregation of Revenue [Line Items] | |||
Net deferred revenue liability | 13,200,000 | 7,500,000 | $ 7,700,000 |
Deferred revenue from prior periods realized | $ 500,000 | $ 800,000 |
Basis of Presentation and Acc_5
Basis of Presentation and Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | May 02, 2020 | Feb. 01, 2020 | May 04, 2019 |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 266,694 | $ 265,248 | $ 264,841 |
Less: accumulated depreciation and amortization | 168,923 | 164,292 | 157,168 |
Total property and equipment, net | 97,771 | 100,956 | 107,673 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 7,277 | 7,277 | 7,277 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 21,635 | 21,635 | 21,311 |
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 96,606 | 95,100 | 96,003 |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 36,931 | 37,048 | 37,225 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 103,642 | 102,528 | 101,540 |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 603 | $ 1,660 | $ 1,485 |
Basis of Presentation and Acc_6
Basis of Presentation and Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 269,837 | $ 343,295 |
Footwear | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 166,242 | 215,075 |
Apparel | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 79,407 | 79,557 |
Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 24,188 | $ 48,663 |
Basis of Presentation and Acc_7
Basis of Presentation and Accounting Policies - Schedule of Goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
May 02, 2020 | May 04, 2019 | Feb. 01, 2020 | |
Goodwill [Roll Forward] | |||
Goodwill balance at February 1, 2020 | $ 19,661,000 | ||
Impairment losses | (19,661,000) | $ 0 | $ 0 |
Goodwill balance at May 2, 2020 | $ 0 | $ 19,661,000 | $ 19,661,000 |
Basis of Presentation and Acc_8
Basis of Presentation and Accounting Policies - Intangible Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
May 02, 2020 | May 04, 2019 | Feb. 01, 2020 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Tradename intangible asset balance at February 1, 2020 | $ 32,400,000 | ||
Impairment losses | (8,900,000) | $ 0 | $ 0 |
Tradename intangible asset balance at May 2, 2020 | $ 23,500,000 | $ 32,400,000 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 02, 2020 | May 04, 2019 | Feb. 01, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Impairment loss | $ 4.1 | $ 1.1 | |
Accumulated amortization | 1 | $ 0.2 | $ 0.8 |
Lease not yet commenced, amount | $ 0.9 | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 10 years | ||
Maximum | Office Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 6 years | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 5 years | ||
Minimum | Office Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 2 years |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 17,139 | $ 17,138 |
Finance lease cost: | ||
Amortization of assets | 235 | 237 |
Interest on lease liabilities | 48 | 65 |
Variable lease cost | (1,208) | 385 |
Lease cost | $ 16,214 | $ 17,825 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Balance Sheet Information (Details) | May 02, 2020 | Feb. 01, 2020 | May 04, 2019 |
Weighted average remaining lease term (in years): | |||
Operating leases | 5 years | 5 years | 5 years |
Finance leases | 4 years | 4 years | 4 years |
Weighted average discount rate: | |||
Operating leases | 3.90% | 4.10% | 4.20% |
Finance leases | 7.60% | 8.80% | 11.60% |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 19,724 | $ 17,269 |
Operating cash flows from finance leases | 48 | 65 |
Financing cash flows from finance leases | 301 | 242 |
ROU assets obtained in exchange for lease liabilities, net | ||
Operating leases | 9,524 | 10,142 |
Finance leases | $ 533 | $ 0 |
Leases - Summary of Maturities
Leases - Summary of Maturities of Operating Lease Liabilities (Details) $ in Thousands | May 02, 2020USD ($) |
Operating | |
Remainder of Fiscal 2021 | $ 57,757 |
Fiscal 2022 | 65,452 |
Fiscal 2023 | 50,045 |
Fiscal 2024 | 35,575 |
Fiscal 2025 | 25,043 |
Thereafter | 43,039 |
Total minimum lease payments | 276,911 |
Less amount representing interest | 25,085 |
Operating lease obligations | 251,826 |
Finance | |
Remainder of Fiscal 2021 | 840 |
Fiscal 2022 | 740 |
Fiscal 2023 | 707 |
Fiscal 2024 | 597 |
Fiscal 2025 | 178 |
Thereafter | 169 |
Total minimum lease payments | 3,231 |
Less amount representing interest | 361 |
Finance lease obligations | 2,870 |
Total | |
Remainder of Fiscal 2021 | 58,597 |
Fiscal 2022 | 66,192 |
Fiscal 2023 | 50,752 |
Fiscal 2024 | 36,172 |
Fiscal 2025 | 25,221 |
Thereafter | 43,208 |
Total minimum lease payments | 280,142 |
Less amount representing interest | 25,446 |
Total lease obligations | $ 254,696 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 02, 2020 | May 04, 2019 | Feb. 01, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term contingent earnout | $ (11,000) | ||
Contingent earnout (decrease) increase | (10,980) | $ 600 | |
Fair Value, Measurements, Recurring | Level I | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 468 | 199 | $ 554 |
Long-term investments | 1,844 | 2,499 | 2,208 |
Short-term contingent earnout | 0 | 0 | 0 |
Long-term contingent earnout | 0 | 0 | 0 |
Total investments | 2,312 | 2,698 | 2,762 |
Fair Value, Measurements, Recurring | Level II | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 0 | 0 |
Long-term investments | 0 | 0 | 0 |
Short-term contingent earnout | 0 | 0 | 0 |
Long-term contingent earnout | 0 | 0 | 0 |
Total investments | 0 | 0 | 0 |
Fair Value, Measurements, Recurring | Level III | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 0 | 0 |
Long-term investments | 0 | 0 | 0 |
Short-term contingent earnout | 10,000 | 0 | 9,958 |
Long-term contingent earnout | 77 | 6,600 | 11,099 |
Total investments | $ (10,077) | $ (6,600) | $ (21,057) |
Debt (Details)
Debt (Details) | Apr. 16, 2020USD ($) | Mar. 31, 2020USD ($) | Oct. 31, 2018USD ($) | May 02, 2020USD ($)day | May 04, 2019USD ($)day | Feb. 01, 2020USD ($)day |
Line of Credit Facility [Line Items] | ||||||
Proceeds under credit facilities | $ 115,918,000 | $ 0 | ||||
Number of days where borrowings incurred against facilities | day | 58 | 91 | 331 | |||
Average outstanding amount | $ 38,700,000 | $ 30,900,000 | $ 21,500,000 | |||
Maximum amount outstanding during period | $ 50,000,000 | $ 35,000,000 | $ 38,000,000 | |||
Interest rate during period | 3.22% | 4.00% | 3.73% | |||
Bank of America LOC | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 50,000,000 | |||||
Regions LOC | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 50,000,000 | |||||
Regions LOC | London Interbank Offered Rate (LIBOR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
Bank of America and Regions LOCs | ||||||
Line of Credit Facility [Line Items] | ||||||
Proceeds under credit facilities | $ 50,000,000 | |||||
Amended Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 75,000,000 | $ 25,000,000 | ||||
Proceeds under credit facilities | 50,000,000 | |||||
Debt issuance costs | 50,000 | |||||
Minimum inventory requirement | $ 150,000,000 | |||||
Amended Credit Facility | London Interbank Offered Rate (LIBOR) | April 16, 2020 through October 16, 2020 | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 2.50% | |||||
Amended Credit Facility | London Interbank Offered Rate (LIBOR) | October 17, 2020 through Maturity | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 3.00% |
Stock-based Compensation - Comp
Stock-based Compensation - Components of Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Stock options | $ 90 | $ 92 |
Restricted stock units | 1,060 | 363 |
Employee stock purchases | 44 | 29 |
Director deferred compensation | 23 | 23 |
Total stock-based compensation expense | 1,217 | 507 |
Income tax benefit recognized | 391 | 113 |
Stock-based compensation expense, net of income tax | $ 826 | $ 394 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares granted | 0 | 13,858 |
Weighted-average grant date fair value of stock options (in dollars per share) | $ 3.33 | $ 5.46 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Forfeitures | $ 0.3 | $ 1.3 |
Compensation costs not yet recognized | $ 7.9 | |
Weighted-average period for recognition | 2 years 10 months 24 days | |
Number of shares granted | 334,485 | 191,021 |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares granted | 27,000 | 16,798 |
Stock-Based Compensation - Equi
Stock-Based Compensation - Equity Awards Granted (Details) - shares | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards granted | 0 | 13,858 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards granted | 27,000 | 16,798 |
Restricted stock unit awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards granted | 334,485 | 191,021 |
Performance-based restricted stock unit awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards granted | 0 | 34,300 |
Deferred stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards granted | 2,143 | 1,027 |
Stock-Based Compensation - Shar
Stock-Based Compensation - Shares Purchased (Details) - $ / shares | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Shares purchased (in shares) | 17,758 | 9,925 |
Average price per share (in dollars per share) | $ 9.29 | $ 12.16 |
Weighed average fair value at grant date (in dollars per share) | $ 4.21 | $ 3.14 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Weighted-average shares used in basic computations | 16,546,000 | 18,308,000 |
Dilutive equity awards | 0 | 227,000 |
Weighted-average shares used in diluted computations | 16,546,000 | 18,535,000 |
Employee Stock Option | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 253,142 |
Stock Repurchase Activity (Deta
Stock Repurchase Activity (Details) - USD ($) | 3 Months Ended | ||
May 02, 2020 | May 04, 2019 | Nov. 30, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||
Cost of repurchased common stock | $ 9,748,000 | $ 4,799,000 | |
Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Authorized repurchased amount | $ 300,000,000 | ||
Repurchased common stock (in shares) | 428,018 | 230,000 | |
Cost of repurchased common stock | $ 9,700,000 | $ 4,800,000 | |
Restricted stock unit awards acquired (in shares) | 30,895 | 29,432 | |
Tax withholding requirements | $ 400,000 | $ 600,000 | |
Remaining authorized repurchase amount | $ 143,300,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | May 02, 2020 | Feb. 01, 2020 | May 04, 2019 |
Commitments and Contingencies Disclosure [Abstract] | |||
Annual bonus related expenses included in accrued payroll expenses | $ 0.9 | $ 8.7 | $ 1.5 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 3 Months Ended |
May 02, 2020USD ($) | |
Income Tax Disclosure [Abstract] | |
Liability associated with unrecognized tax benefits | $ 1 |
CARES Act, Tax Benefit | $ 1.9 |
Related-Party Transactions (Det
Related-Party Transactions (Details) | Jun. 01, 2020USD ($) | May 02, 2020USD ($)store | May 04, 2019USD ($) | Jan. 29, 2022USD ($) | Jan. 30, 2021USD ($) | Feb. 01, 2020USD ($) |
Related Party Transaction [Line Items] | ||||||
Operating cash flows from operating leases | $ 19,724,000 | $ 17,269,000 | ||||
Operating lease liability payments due | $ 276,911,000 | |||||
City Gear | Subsequent Event | ||||||
Related Party Transaction [Line Items] | ||||||
Payment for Contingent Consideration Liability, Investing Activities | $ 10,000,000 | |||||
City Gear | Forecast | ||||||
Related Party Transaction [Line Items] | ||||||
Contingent arrangements, limit | $ 15,000,000 | |||||
Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Number of store leases under lease arrangement | store | 1 | |||||
Operating cash flows from operating leases | $ 100,000 | |||||
Operating lease liability payments due | $ 200,000 | 300,000 | ||||
Affiliated Entity | Mr. Longo | Merchant's Capital | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage by noncontrolling owners | 33.30% | |||||
Affiliated Entity | Memphis Logistics Group | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses with related party | $ 1,700,000 | 2,000,000 | ||||
Due to related parties | 200,000 | 400,000 | $ 500,000 | |||
Affiliated Entity | T.I.G. Construction | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses with related party | 700,000 | 400,000 | ||||
Due to related parties | 200,000 | 200,000 | 100,000 | |||
Affiliated Entity | Merchant's Capital | ||||||
Related Party Transaction [Line Items] | ||||||
Operating cash flows from operating leases | 51,200 | 51,200 | ||||
Operating lease liability payments due | 0 | |||||
Due to related parties | $ 0 | $ 0 | $ 0 | |||
Chief Executive Officer | City Gear | Forecast | ||||||
Related Party Transaction [Line Items] | ||||||
Contingent arrangements, limit | $ 4,400,000 | $ 2,300,000 | ||||
Earnout percent to related party | 22.80% |