Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 29, 2017 | Aug. 25, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 29, 2017 | |
Entity Registrant Name | SHOE CARNIVAL INC | |
Entity Central Index Key | 895,447 | |
Current Fiscal Year End Date | --01-30 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,019,769 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited - USD ($) $ in Thousands | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
Current Assets: | |||
Cash and cash equivalents | $ 18,531 | $ 62,944 | $ 41,549 |
Accounts receivable | 2,798 | 4,424 | 3,185 |
Merchandise inventories | 357,467 | 279,646 | 351,220 |
Deferred income taxes | 0 | 0 | 2,680 |
Other | 7,029 | 4,737 | 7,991 |
Total Current Assets | 385,825 | 351,751 | 406,625 |
Property and equipment - net | 96,046 | 96,216 | 103,363 |
Deferred income taxes | 10,072 | 9,600 | 7,045 |
Other noncurrent assets | 869 | 911 | 1,053 |
Total Assets | 492,812 | 458,478 | 518,086 |
Current Liabilities: | |||
Accounts payable | 93,829 | 67,808 | 116,989 |
Accrued and other liabilities | 20,367 | 18,488 | 19,759 |
Total Current Liabilities | 114,196 | 86,296 | 136,748 |
Long-term debt | 26,700 | 0 | 0 |
Deferred lease incentives | 28,909 | 30,751 | 30,634 |
Accrued rent | 10,977 | 11,255 | 11,407 |
Deferred compensation | 11,141 | 10,465 | 10,022 |
Other | 686 | 829 | 811 |
Total Liabilities | 192,609 | 139,596 | 189,622 |
Shareholders' Equity: | |||
Common stock, $.01 par value, 50,000,000 shares authorized, 20,552,245 shares, 20,569,198 shares and 20,599,601 shares issued, respectively | 206 | 206 | 206 |
Additional paid-in capital | 61,638 | 65,272 | 63,753 |
Retained earnings | 322,473 | 312,641 | 306,458 |
Treasury stock, at cost, 3,533,262 shares, 2,433,925 shares and 1,777,305 shares, respectively | (84,114) | (59,237) | (41,953) |
Total Shareholders' Equity | 300,203 | 318,882 | 328,464 |
Total Liabilities and Shareholders' Equity | $ 492,812 | $ 458,478 | $ 518,086 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (Parenthetical) - $ / shares | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
Statement of Financial Position [Abstract] | |||
Common stock, par value per share | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 |
Common stock, shares issued | 20,552,245 | 20,569,198 | 20,599,601 |
Treasury shares, shares | 3,533,262 | 2,433,925 | 1,777,305 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME Unaudited - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 235,064 | $ 231,907 | $ 488,453 | $ 492,377 |
Cost of sales (including buying, distribution and occupancy costs) | 166,837 | 164,677 | 348,070 | 349,591 |
Gross profit | 68,227 | 67,230 | 140,383 | 142,786 |
Selling, general and administrative expenses | 61,803 | 60,570 | 120,732 | 118,841 |
Operating income | 6,424 | 6,660 | 19,651 | 23,945 |
Interest income | (1) | (2) | (2) | (5) |
Interest expense | 149 | 41 | 191 | 84 |
Income before income taxes | 6,276 | 6,621 | 19,462 | 23,866 |
Income tax expense | 2,380 | 2,517 | 7,335 | 9,101 |
Net income | $ 3,896 | $ 4,104 | $ 12,127 | $ 14,765 |
Net income per share: | ||||
Basic | $ 0.24 | $ 0.22 | $ 0.73 | $ 0.78 |
Diluted | $ 0.24 | $ 0.22 | $ 0.73 | $ 0.78 |
Weighted average shares: | ||||
Basic | 16,091 | 18,277 | 16,453 | 18,526 |
Diluted | 16,094 | 18,282 | 16,457 | 18,531 |
Cash dividends declared per share | $ 0.075 | $ 0.070 | $ 0.145 | $ 0.135 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY Unaudited - 6 months ended Jul. 29, 2017 - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance at Jan. 28, 2017 | $ 206 | $ 65,272 | $ 312,641 | $ (59,237) | $ 318,882 |
Balance, shares at Jan. 28, 2017 | 20,569,000 | (2,434,000) | |||
Adoption of Accounting Standards Update No. 2016-09 | (188) | 188 | 0 | ||
Dividends declared ($0.145 per share) | (2,483) | (2,483) | |||
Stock option exercises | (58) | $ 84 | $ 26 | ||
Stock option exercises, shares | 4,000 | 3,500 | |||
Employee stock purchase plan purchases | (28) | $ 144 | $ 116 | ||
Employee stock purchase plan purchases, shares | 6,000 | ||||
Restricted stock awards | (4,524) | $ 4,524 | 0 | ||
Restricted stock awards, shares | (17,000) | 138,000 | |||
Shares surrendered by employees to pay taxes on restricted stock | $ (286) | (286) | |||
Shares surrendered by employees to pay taxes on restricted stock, shares | (12,000) | ||||
Purchase of common stock for treasury | $ (29,343) | (29,343) | |||
Purchase of common stock for treasury, shares | (1,235,000) | ||||
Stock-based compensation expense | 1,164 | 1,164 | |||
Net income | 12,127 | 12,127 | |||
Balance at Jul. 29, 2017 | $ 206 | $ 61,638 | $ 322,473 | $ (84,114) | $ 300,203 |
Balance, shares at Jul. 29, 2017 | 220,552,000 | (3,533,000) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY Unaudited (Parenthetical) | Jul. 29, 2017$ / shares |
Statement of Stockholders' Equity [Abstract] | |
Dividends | $ 0.145 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 29, 2017 | Jul. 30, 2016 | |
Cash Flows From Operating Activities | ||
Net income | $ 12,127 | $ 14,765 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 11,961 | 11,773 |
Stock-based compensation | 927 | 2,123 |
Loss on retirement and impairment of assets | 1,705 | 59 |
Deferred income taxes | (472) | (1,506) |
Lease incentives | 1,560 | 898 |
Other | (3,140) | (1,973) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,626 | (1,054) |
Merchandise inventories | (77,821) | (58,341) |
Accounts payable and accrued liabilities | 27,356 | 49,229 |
Other | (2,329) | (3,381) |
Net cash (used in) provided by operating activities | (26,500) | 12,592 |
Cash Flows From Investing Activities | ||
Purchases of property and equipment | (12,737) | (11,910) |
Net cash used in investing activities | (12,737) | (11,910) |
Cash Flows From Financing Activities | ||
Borrowings under line of credit | 79,200 | 0 |
Payments on line of credit | (52,500) | 0 |
Proceeds from issuance of stock | 142 | 133 |
Dividends paid | (2,389) | (2,533) |
Excess tax benefits from stock-based compensation | 0 | 2 |
Purchase of common stock for treasury | (29,343) | (25,238) |
Shares surrendered by employees to pay taxes on restricted stock | (286) | (311) |
Net cash used in financing activities | (5,176) | (27,947) |
Net decrease in cash and cash equivalents | (44,413) | (27,265) |
Cash and cash equivalents at beginning of period | 62,944 | 68,814 |
Cash and cash equivalents at end of period | 18,531 | 41,549 |
Supplemental disclosures of cash flow information: | ||
Cash paid during period for interest | 112 | 84 |
Cash paid during period for income taxes | 7,883 | 11,482 |
Capital expenditures incurred but not yet paid | $ 925 | $ 576 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jul. 29, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 - Basis of Presentation In our opinion, the accompanying Unaudited Condensed Consolidated Financial Statements and notes have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information and contain all normal recurring adjustments necessary to present fairly our financial position and the results of our operations and our cash flows for the periods presented. Certain information and disclosures normally included in the notes to Condensed Consolidated Financial Statements have been condensed or omitted according to the rules and regulations of the SEC, although we believe that the disclosures are adequate to make the information presented not misleading. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. The Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the notes thereto contained in our |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jul. 29, 2017 | |
Earnings Per Share, Basic [Abstract] | |
Net Income Per Share | Note 2 - Net Income Per Share The following tables set forth the computation of basic and diluted earnings per share as shown on the face of the accompanying Condensed Consolidated Statements of Income: Thirteen Weeks Ended July 29, 2017 July 30, 2016 (In thousands, except per share data) Basic Earnings per Share: Net Income Shares Per Share Amount Net Income Shares Per Share Amount Net income $ 3,896 $ 4,104 Amount allocated to participating securities (60 ) (87 ) Net income available for basic common shares and basic earnings per share $ 3,836 16,091 $ 0.24 $ 4,017 18,277 $ 0.22 Diluted Earnings per Share: Net income $ 3,896 $ 4,104 Amount allocated to participating securities (60 ) (87 ) Adjustment for dilutive potential common shares 0 3 0 5 Net income available for diluted common shares and diluted earnings per share $ 3,836 16,094 $ 0.24 $ 4,017 18,282 $ 0.22 Twenty-six Weeks Ended July 29, 2017 July 30, 2016 (In thousands, except per share data) Basic Earnings per Share: Net Income Shares Per Share Amount Net Income Shares Per Share Amount Net income $ 12,127 $ 14,765 Amount allocated to participating securities (171 ) (303 ) Net income available for basic common shares and basic earnings per share $ 11,956 16,453 $ 0.73 $ 14,462 18,526 $ 0.78 Diluted Earnings per Share: Net income $ 12,127 $ 14,765 Amount allocated to participating securities (171 ) (303 ) Adjustment for dilutive potential common shares 0 4 0 5 Net income available for diluted common shares and diluted earnings per share $ 11,956 16,457 $ 0.73 $ 14,462 18,531 $ 0.78 Our basic and diluted earnings per share are computed using the two-class method. The two-class method is an earnings allocation that determines net income per share for each class of common stock and participating securities according to their participation rights in dividends and undistributed earnings or losses. Non-vested restricted stock awards that include non-forfeitable rights to dividends are considered participating securities. During periods of undistributed losses, however, no effect is given to our participating securities since they do not share in the losses. Per share amounts are computed by dividing net income available to common shareholders by the weighted average shares outstanding during each period. No options to purchase shares of common stock were excluded in the computation of diluted shares for the periods presented. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jul. 29, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Note 3 - Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance on the recognition of revenue for all contracts with customers designed to improve comparability and enhance financial statement disclosures. Subsequently, the FASB has also issued accounting standards updates which clarify the guidance. The underlying principle of this comprehensive model is that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the payment to which the company expects to be entitled in exchange for those goods or services. In August 2015, the FASB subsequently issued guidance which approved a one year deferral of the guidance until annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017, which makes the guidance effective for us at the beginning of fiscal 2018, including interim periods within that fiscal year. While we have made progress on our scoping review and assessment phase, we are still evaluating the impact this guidance will have on our financial statements and related disclosures, and we are continuing to evaluate the method of adoption we will use when we transition to this guidance. At this time the key areas of focus include timing of recognizing revenue for our multi-channel business, recognition of breakage revenue for unredeemed gift cards, our customer loyalty program, and presentation of customer related return reserves on the balance sheet. In July 2015, the FASB issued guidance on simplifying the measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. The new guidance does not apply to inventory measured using the last-in-first-out or the retail inventory valuation methods. We adopted the provisions of this guidance on January 29, 2017. The adoption of this guidance did not have a material impact on our consolidated financial position, results of operations or cash flows. In February 2016, the FASB issued guidance which will replace most existing lease accounting guidance. This update requires an entity to recognize leased assets and the rights and obligations created by those leased assets on the balance sheet and to disclose key information about the entity’s leasing arrangements. The guidance will be effective at the beginning of fiscal 2019, including interim periods within that fiscal year, and will be applied on a modified retrospective basis. We are evaluating the impact of this guidance on our consolidated financial position, results of operations and cash flows. The adoption of the guidance will require us to recognize right-of-use assets and lease liabilities that will be material to our consolidated balance sheet. In March 2016, the FASB issued guidance intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification in the statement of cash flows and forfeitures. We adopted the provisions of this guidance on January 29, 2017. As a result of this adoption, all tax-related cash flows resulting from share-based payments in fiscal 2017 are presented as operating activities on the statements of cash flows, as we elected to adopt this portion of the guidance on a prospective basis. Additionally, we made an accounting policy election to account for forfeitures when they occur rather than estimating the number of awards that are expected to vest. As a result of this election, we recorded a cumulative-effect benefit of $188,000 to retained earnings as of the date of adoption. In November 2016, the FASB issued guidance for restricted cash classification and presentation on the statement of cash flows, requiring restricted cash to be included within cash and cash equivalents on the statement of cash flows. In May 2017, the FASB issued guidance which clarifies what constitutes a modification of a share-based payment award. The guidance will be effective at the beginning of fiscal 2018, including interim periods within that fiscal year, and early adoption is permitted. The guidance requires adoption on a prospective basis for share-based payment awards modified on or after the adoption date We do not believe the guidance will have a material impact on our condensed consolidated financial position, results of operations or cash flows. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 29, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 4 - Fair Value Measurements The accounting standards related to fair value measurements define fair value and provide a consistent framework for measuring fair value under the authoritative literature. Valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect market assumptions. This guidance only applies when other standards require or permit the fair value measurement of assets and liabilities. The guidance does not expand the use of fair value measurements. A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three broad levels: · Level 1 – Quoted prices in active markets for identical assets or liabilities; · Level 2 – Observable market-based inputs or unobservable inputs that are corroborated by market data; and · Level 3 – Significant unobservable inputs that are not corroborated by market data. Generally, these fair value measures are model-based valuation techniques such as discounted cash flows, and are based on the best information available, including our own data. Fair values of our long-lived assets are estimated using an income-based approach and are classified within Level 3 of the valuation hierarchy. The following table presents assets that are measured at fair value on a recurring basis at July 29, 2017, Fair Value Measurements (In thousands) Level 1 Level 2 Level 3 Total As of July 29, 2017: Cash equivalents – money market account $ 0 $ 0 $ 0 $ 0 As of January 28, 2017: Cash equivalents– money market account $ 114 $ 0 $ 0 $ 114 As of July 30, 2016: Cash equivalents – money market account $ 114 $ 0 $ 0 $ 114 The fair values of cash, receivables, accounts payable, accrued expenses and other current liabilities approximate their carrying values because of their short-term nature. In addition, we believe that our credit facility obligation, which is recorded at historical cost and is classified as long-term debt on our condensed consolidated balance sheet as of July 29, 2017, approximates fair value as the interest rate is adjusted based on current market rates. From time to time, we measure certain assets at fair value on a non-recurring basis, specifically long-lived assets evaluated for impairment. These are typically store specific assets, which are reviewed for impairment whenever events or changes in circumstances indicate that recoverability of their carrying value is questionable. If the expected, undiscounted future cash flows related to a store’s assets are less than their carrying value, an impairment loss would be recognized for the difference between estimated fair value and carrying value and recorded in selling, general and administrative expenses. We estimate the fair value of store assets using an income-based approach considering the cash flows expected over the remaining lease term for each location. These projections are primarily based on management’s estimates of store-level sales, gross margins, direct expenses, exercise of future lease renewal options and resulting cash flows and, by their nature, include judgments about how current initiatives will impact future performance. External factors, such as the local environment in which the store resides, including strip-mall traffic and competition, are evaluated in terms of their effect on sales trends. Changes in sales and operating income assumptions or unfavorable changes in external factors can significantly impact the estimated future cash flows. An increase or decrease in the projected cash flow can significantly decrease or increase the fair value of these assets, which would have an effect on the impairment recorded. During the thirteen weeks ended July 29, 2017, we recorded an impairment charge of $916,000 on long-lived assets. Subsequent to this impairment, these long-lived assets had a remaining unamortized basis of $286,000. During the twenty-six weeks ended July 29, 2017, we recorded an impairment charge of $1.6 million on long-lived assets. Subsequent to this impairment, these long-lived assets had a remaining unamortized basis of $1.3 million. There were no impairments of long-lived assets recorded during the thirteen or twenty-six weeks ended July 30, 2016. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jul. 29, 2017 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Note 5 - Stock-Based Compensation At our 2017 annual meeting of shareholders held on June 13, 2017, our shareholders approved a new equity incentive plan, the Shoe Carnival, Inc. 2017 Equity Incentive Plan (the “2017 Plan”), which replaces our 2000 Stock Option and Incentive Plan, as amended (the “2000 Plan”). According to the terms of the 2017 Plan, upon approval of the 2017 Plan by our shareholders, no further awards may be made under the 2000 Plan. A maximum of 1,000,000 shares of our common stock are available for issuance and sale under the 2017 Plan. In addition, any shares of our common stock subject to an award granted under the 2017 Plan, or to an award granted under the 2000 Plan that was outstanding on the date our shareholders approved the 2017 Plan, that expires, is cancelled or forfeited, or is settled for cash will, to the extent of such cancellation, forfeiture, expiration or cash settlement, automatically become available for future awards under the 2017 Plan. Stock-based compensation includes stock options, cash-settled stock appreciation rights (SARs) and restricted stock awards. Additionally, we recognize stock-based compensation expense for the discount on shares sold to employees through our employee stock purchase plan. For the thirteen and twenty-six weeks ended July 29, 2017, stock-based compensation expense for the employee stock purchase plan was $9,000 before the income tax benefit of $3,000 and $20,000 before the income tax benefit of $8,000, respectively. For the thirteen and twenty-six weeks ended July 30, 2016, stock-based compensation expense for the employee stock purchase plan was $11,000 before the income tax benefit of $4,000 and $24,000 before the income tax benefit of $9,000, respectively. No stock options have been granted since fiscal 2008. All outstanding options had vested as of the end of fiscal 2011; therefore no unrecognized compensation expense remains. In the first six months of fiscal 2017 there were 3,500 options exercised and there were 3,500 options outstanding and exercisable as of July 29, 2017. The following section summarizes the share transactions for our restricted stock awards: Number of Weighted- Restricted stock at January 28, 2017 964,858 $ 22.63 Granted 273,398 24.10 Vested (32,274 ) 24.24 Forfeited or expired (151,953 ) 17.74 Restricted stock at July 29, 2017 1,054,029 $ 23.67 The weighted-average grant date fair value of stock awards granted during the twenty-six week periods ended July 29, 2017 and July 30, 2016 was $24.10 and $24.94, respectively. The total fair value at grant date of restricted stock awards that vested during the first six months of fiscal 2017 was $782,000. The total fair value at grant date of restricted stock awards that vested during the first six months of fiscal 2016 was $854,000. Of the 151,953 shares of restricted stock that were forfeited or that expired in the first six months of fiscal 2017, 135,000 shares were restricted stock awards that expired unvested in the first quarter of fiscal 2017, as the performance measures were not achieved. These awards represented the three tiers of the restricted stock awards granted on March 15, 2011. The following table summarizes information regarding stock-based compensation expense recognized for restricted stock awards: (In thousands) Thirteen Thirteen Twenty-six Twenty-six Stock-based compensation before the recognized income tax effect $ 1,133 $ 1,414 $ 1,144 $ 1,902 Income tax effect $ 430 $ 538 $ 431 $ 725 The $1.1 million of expense recognized in the first six months of fiscal 2017 was comprised of compensation expense of $2.1 million, partially offset by income of $916,000. The income was attributable to the reversal of the cumulative prior period expense for performance-based awards, which were deemed by management as no longer probable to vest prior to their expiration. As of July 29, 2017, approximately $6.2 million of unrecognized compensation expense remained related to both our performance-based and service-based restricted stock awards. The cost is expected to be recognized over a weighted average period of approximately 1.6 years. This incorporates our current assumptions with respect to the estimated requisite service period required to achieve the designated performance conditions for performance-based stock awards. The following table summarizes the SARs activity: Number of Weighted- Weighted- Outstanding at January 28, 2017 111,300 $ 24.26 Forfeited 0 0.00 Exercised 0 0.00 Outstanding at July 29, 2017 111,300 $ 24.26 2.6 Exercisable at July 29, 2017 64,741 $ 24.26 2.6 SARs were granted during the first quarter of fiscal 2015 to certain non-executive employees, such that one-third of the shares underlying the SARs will vest and become fully exercisable on each of the first three anniversaries of the date of the grant and were assigned a five-year term from the date of grant, after which any unexercised SARs will expire. Each SAR entitles the holder, upon exercise of their vested shares, to receive cash in an amount equal to the closing price of our common stock on the date of exercise less the exercise price, with a maximum amount of gain defined. The SARs granted during the first quarter of fiscal 2015 were issued with a defined maximum gain of $10.00 over the exercise price of $24.26. The fair value of these liability awards are re-measured, 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 July 29, 2017 and July 30, 2016 was $1.97 and $4.86, respectively. The fair value was estimated using a trinomial lattice model with the following assumptions: July 29, 2017 July 30, 2016 Risk free interest rate yield curve 1.00% - 1.83 % 0.19% - 1.03 % Expected dividend yield 1.6 % 1.1 % Expected volatility 35.68 % 36.32 % Maximum life 2.6 Years 3.6 Years Exercise multiple 1.34 1.34 Maximum payout $ 10.00 $ 10.00 Employee exit rate 2.2% - 9.0 % 2.2% - 9.0 % The risk free interest rate was based on the U.S. Treasury yield curve in effect at the end of the reporting period. The expected dividend yield was based on our historical 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: Thirteen Thirteen Twenty-six Twenty-six Stock-based compensation before the recognized income tax effect $ (261 ) $ 72 $ (237 ) $ 212 Income tax effect $ (99 ) $ 27 $ (89 ) $ 81 As of July 29, 2017, approximately $23,000 in unrecognized compensation expense remained related to non-vested SARs. This expense is expected to be recognized over a weighted-average period of approximately 0.7 years. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Net income per share: | |
Schedule of the Computation of Basic and Diluted Earnings Per Share | The following tables set forth the computation of basic and diluted earnings per share as shown on the face of the accompanying Condensed Consolidated Statements of Income: Thirteen Weeks Ended July 29, 2017 July 30, 2016 (In thousands, except per share data) Basic Earnings per Share: Net Income Shares Per Share Amount Net Income Shares Per Share Amount Net income $ 3,896 $ 4,104 Amount allocated to participating securities (60 ) (87 ) Net income available for basic common shares and basic earnings per share $ 3,836 16,091 $ 0.24 $ 4,017 18,277 $ 0.22 Diluted Earnings per Share: Net income $ 3,896 $ 4,104 Amount allocated to participating securities (60 ) (87 ) Adjustment for dilutive potential common shares 0 3 0 5 Net income available for diluted common shares and diluted earnings per share $ 3,836 16,094 $ 0.24 $ 4,017 18,282 $ 0.22 Twenty-six Weeks Ended July 29, 2017 July 30, 2016 (In thousands, except per share data) Basic Earnings per Share: Net Income Shares Per Share Amount Net Income Shares Per Share Amount Net income $ 12,127 $ 14,765 Amount allocated to participating securities (171 ) (303 ) Net income available for basic common shares and basic earnings per share $ 11,956 16,453 $ 0.73 $ 14,462 18,526 $ 0.78 Diluted Earnings per Share: Net income $ 12,127 $ 14,765 Amount allocated to participating securities (171 ) (303 ) Adjustment for dilutive potential common shares 0 4 0 5 Net income available for diluted common shares and diluted earnings per share $ 11,956 16,457 $ 0.73 $ 14,462 18,531 $ 0.78 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on a Recurring Basis | The following table presents assets that are measured at fair value on a recurring basis at July 29, 2017, Fair Value Measurements (In thousands) Level 1 Level 2 Level 3 Total As of July 29, 2017: Cash equivalents – money market account $ 0 $ 0 $ 0 $ 0 As of January 28, 2017: Cash equivalents– money market account $ 114 $ 0 $ 0 $ 114 As of July 30, 2016: Cash equivalents – money market account $ 114 $ 0 $ 0 $ 114 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Stock Awards Transactions | The following section summarizes the share transactions for our restricted stock awards: Number of Weighted- Restricted stock at January 28, 2017 964,858 $ 22.63 Granted 273,398 24.10 Vested (32,274 ) 24.24 Forfeited or expired (151,953 ) 17.74 Restricted stock at July 29, 2017 1,054,029 $ 23.67 |
Summary of SARs Activity | The following table summarizes the SARs activity: Number of Weighted- Weighted- Outstanding at January 28, 2017 111,300 $ 24.26 Forfeited 0 0.00 Exercised 0 0.00 Outstanding at July 29, 2017 111,300 $ 24.26 2.6 Exercisable at July 29, 2017 64,741 $ 24.26 2.6 |
Schedule of SARs Assumptions | The fair value was estimated using a trinomial lattice model with the following assumptions: July 29, 2017 July 30, 2016 Risk free interest rate yield curve 1.00% - 1.83 % 0.19% - 1.03 % Expected dividend yield 1.6 % 1.1 % Expected volatility 35.68 % 36.32 % Maximum life 2.6 Years 3.6 Years Exercise multiple 1.34 1.34 Maximum payout $ 10.00 $ 10.00 Employee exit rate 2.2% - 9.0 % 2.2% - 9.0 % |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock Compensation Expense | The following table summarizes information regarding stock-based compensation expense recognized for restricted stock awards: (In thousands) Thirteen Thirteen Twenty-six Twenty-six Stock-based compensation before the recognized income tax effect $ 1,133 $ 1,414 $ 1,144 $ 1,902 Income tax effect $ 430 $ 538 $ 431 $ 725 |
Stock Appreciation Rights (SARs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock Compensation Expense | The following table summarizes information regarding stock-based compensation recognized for SARs: Thirteen Thirteen Twenty-six Twenty-six Stock-based compensation before the recognized income tax effect $ (261 ) $ 72 $ (237 ) $ 212 Income tax effect $ (99 ) $ 27 $ (89 ) $ 81 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Basic Earnings per Share: | ||||
Net income | $ 3,896 | $ 4,104 | $ 12,127 | $ 14,765 |
Amount allocated to participating securities | (60) | (87) | (171) | (303) |
Net income available for basic common shares and basic earnings per share | $ 3,836 | $ 4,017 | $ 11,956 | $ 14,462 |
Net income available for basic common shares and basic earnings per share, Shares | 16,091 | 18,277 | 16,453 | 18,526 |
Net income available for basic common shares and basic earnings per share, Per Share Amount | $ 0.24 | $ 0.22 | $ 0.73 | $ 0.78 |
Diluted Earnings per Share: | ||||
Net income | $ 3,896 | $ 4,104 | $ 12,127 | $ 14,765 |
Amount allocated to participating securities | (60) | (87) | (171) | (303) |
Adjustment for dilutive potential common shares | $ 0 | $ 0 | $ 0 | $ 0 |
Adjustment for dilutive potential common shares, Shares | 3 | 5 | 4 | 5 |
Net income available for diluted common shares and diluted earnings per share | $ 3,836 | $ 4,017 | $ 11,956 | $ 14,462 |
Net income available for diluted common shares and diluted earnings per share, Shares | 16,094 | 18,282 | 16,457 | 18,531 |
Net income available for diluted common shares and diluted earnings per share, Per Share Amount | $ 0.24 | $ 0.22 | $ 0.73 | $ 0.78 |
Recently Issued Accounting Pr17
Recently Issued Accounting Pronouncements (Details) | 6 Months Ended |
Jul. 29, 2017USD ($) | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Cumulative effect on retained earnings from adoption of Accounting Standards Update No. 2016-09 | $ 188,000 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Fair Value Disclosures [Abstract] | ||||
Long-lived assets, impairment charges | $ 916,000 | $ 1,600,000 | ||
Remaining unamortized basis | $ 286,000 | $ 1,300,000 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Assets Measure at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents - money market account | $ 0 | $ 114 | $ 114 |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents - money market account | 0 | 114 | 114 |
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents - money market account | 0 | 0 | 0 |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents - money market account | $ 0 | $ 0 | $ 0 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2017 | Jul. 30, 2016 | Apr. 28, 2015 | Jul. 29, 2017 | Jul. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available to be issued and sold pursuant to the 2017 Plan | 1,000,000 | 1,000,000 | |||
Stock-based compensation expense - ESPP | $ 9,000 | $ 11,000 | $ 20,000 | $ 24,000 | |
Income tax benefit - ESPP | $ 3,000 | $ 4,000 | 8,000 | 9,000 | |
Fair value of stock awards vested during period | $ 782,000 | $ 854,000 | |||
Options exercised | 3,500 | ||||
Options outstanding | 3,500 | 3,500 | |||
Options exercisable | 3,500 | 3,500 | |||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense - ESPP | $ 1,100,000 | ||||
Weighted average grant date fair value of awards | $ 24.10 | $ 24.94 | |||
Number of shares of awards expired | 135,000 | ||||
Number of shares restricted stock awards expired unvested | 151,953 | ||||
Reduced share based compensation expense | $ 916,000 | ||||
Cumulative share based compensation expense | 2,100,000 | ||||
Unrecognized share-based compensation expense | $ 6,200,000 | $ 6,200,000 | |||
Unrecognized compensation cost, recognition period | 1 year 7 months 6 days | ||||
Stock Appreciation Rights (SARs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant date fair value of awards | $ 1.97 | 4.86 | |||
Unrecognized share-based compensation expense | $ 23,000 | $ 23,000 | |||
Unrecognized compensation cost, recognition period | 8 months 12 days | ||||
Defined maximum gain | $ 10 | $ 10 | $ 10 | ||
Exercise price | $ 24.26 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Restricted Stock Awards Transactions) (Details) - Restricted Stock [Member] - $ / shares | 6 Months Ended | |
Jul. 29, 2017 | Jul. 30, 2016 | |
Number of Shares | ||
Restricted stock at January 28, 2017 | 964,858 | |
Granted | 273,398 | |
Vested | (32,274) | |
Forfeited or expired | (151,953) | |
Restricted stock at July 29, 2017 | 1,054,029 | |
Weighted-Average Grant Date Fair Value | ||
Restricted stock at January 28, 2017 | $ 22.63 | |
Granted | 24.10 | $ 24.94 |
Vested | 24.24 | |
Forfeited or expired | 17.74 | |
Restricted stock at July 29, 2017 | $ 23.67 |
Stock-Based Compensation (Sum22
Stock-Based Compensation (Summary of Restricted Stock Awards and SARs Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation before the recognized income tax effect | $ 1,133 | $ 1,414 | $ 1,144 | $ 1,902 |
Income tax effect | 430 | 538 | 431 | 725 |
Stock Appreciation Rights (SARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation before the recognized income tax effect | (261) | 72 | (237) | 212 |
Income tax effect | $ (99) | $ 27 | $ (89) | $ 81 |
Stock-Based Compensation (Sum23
Stock-Based Compensation (Summary of SARs Activity) (Details) - Stock Appreciation Rights (SARs) [Member] | 6 Months Ended |
Jul. 29, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at January 28, 2017 | shares | 111,300 |
Forfeited | shares | 0 |
Exercised | shares | 0 |
Outstanding at July 29, 2017 | shares | 111,300 |
Exercisable at July 29, 2017 | shares | 64,741 |
Outstanding at January 28, 2017 | $ / shares | $ 24.26 |
Forfeited | $ / shares | 0 |
Exercised | $ / shares | 0 |
Outstanding at July 29, 2017 | $ / shares | 24.26 |
Exercisable at July 29, 2017 | $ / shares | $ 24.26 |
Outstanding at July 29, 2017 | 2 years 7 months 6 days |
Exercisable at July 29, 2017 | 2 years 7 months 6 days |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of SARs Assumptions) (Details) - Stock Appreciation Rights (SARs) [Member] - $ / shares | 3 Months Ended | 6 Months Ended | |
Apr. 28, 2015 | Jul. 29, 2017 | Jul. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate yield curve, minimum | 1.00% | 0.19% | |
Risk free interest rate yield curve, maximum | 1.83% | 1.03% | |
Expected dividend yield | 1.60% | 1.10% | |
Expected volatility | 35.68% | 36.32% | |
Maximum life | 2 years 7 months 6 days | 3 years 7 months 6 days | |
Exercise multiple | 1.34 | 1.34 | |
Maximum payout | $ 10 | $ 10 | $ 10 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee exit rate | 2.20% | 2.20% | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee exit rate | 9.00% | 9.00% |