Note 13 - Share-based Compensation

9 Months Ended

Nov. 02, 2019

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

Note 13 Share-Based Compensation

The Company recognized share-based compensation expense of $2.4 million and $3.6 million during the thirteen weeks and $8.9 million and $11.6 million during the thirty-nine weeks ended November 2, 2019 and November 3, 2018, respectively.

The Company had net (repurchases) issuances of (69,377) and 17,225 shares of common stock during the thirteen weeks ended November 2, 2019 and November 3, 2018, respectively, for restricted stock grants, stock performance awards issued to employees, stock options exercised and common and restricted stock grants issued to non-employee directors, net of forfeitures and shares withheld to satisfy the tax withholding requirement.  During the thirty-nine weeks ended November 2, 2019 and November 3, 2018, the Company issued 295,466 and 290,756 shares of common stock, respectively, related to these share-based plans.

Restricted Stock 

The following table summarizes restricted stock activity for the periods ended November 2, 2019 and November 3, 2018:

	Thirteen Weeks Ended						Thirteen Weeks Ended
	November 2, 2019						November 3, 2018
	Total Number of Restricted Shares			Weighted- Average Grant Date Fair Value			Total Number of Restricted Shares			Weighted- Average Grant Date Fair Value
August 3, 2019		1,433,470		$	27.09	August 4, 2018		1,205,898		$	29.04
Granted		11,000			22.44	Granted		45,000			33.52
Forfeited		(78,000	)		30.75	Forfeited		(27,650	)		29.24
Vested		(10,000	)		32.85	Vested		—			—
November 2, 2019		1,356,470		$	26.80	November 3, 2018		1,223,248		$	29.20

	Thirty-Nine Weeks Ended						Thirty-Nine Weeks Ended
	November 2, 2019						November 3, 2018
	Total Number of Restricted Shares			Weighted- Average Grant Date Fair Value			Total Number of Restricted Shares			Weighted- Average Grant Date Fair Value
February 2, 2019		1,249,223		$	29.17	February 3, 2018		1,174,801		$	27.92
Granted		461,234			22.94	Granted		378,833			32.24
Forfeited		(135,425	)		29.91	Forfeited		(44,950	)		28.69
Vested		(218,562	)		30.25	Vested		(285,436	)		28.06
November 2, 2019		1,356,470		$	26.80	November 3, 2018		1,223,248		$	29.20

All of the restricted shares granted during the thirteen weeks ended November 2, 2019, have a graded-vesting term of three years.  Of the 461,234 restricted shares granted during the thirty-nine weeks ended November 2, 2019, 12,914 shares have a cliff-vesting term of one year and 448,320 shares have a graded-vesting term of three years.  All of the restricted shares granted during the thirteen weeks ended November 3, 2018, have a graded-vesting term of three years.  Of the 378,833 restricted shares granted during the thirty-nine weeks ended November 3, 2018, 3,642 shares have a cliff-vesting term of one year, 9,500 shares have a cliff-vesting term of four years, and 365,691 shares have a graded-vesting term of three years. 

Performance Share Awards

During the thirteen weeks ended November 2, 2019 and November 3, 2018, the Company granted no performance share awards.  During the thirty-nine weeks ended November 2, 2019 and November 3, 2018, the Company granted performance share awards for a targeted 180,000 and 155,000 shares, respectively, with a weighted-average grant date fair value of $23.42 and $31.84, respectively.  Vesting of performance-based awards is dependent upon the financial performance of the Company and the attainment of certain financial goals during the three-year period following the grant.  At the end of the vesting period, the employee will have earned an amount of shares or units between 0% and 200% of the targeted award, depending on the achievement of the specified financial goals for the service period.  Compensation expense is recognized based on the fair value of the award and the anticipated number of shares or units to be awarded for each tranche in accordance with the vesting schedule of the units over the three-year service period.  

Stock Options
The following table summarizes stock option activity for the periods ended November 2, 2019 and November 3, 2018:

	Thirteen Weeks Ended						Thirteen Weeks Ended
	November 2, 2019						November 3, 2018
	Total Number of Stock Options			Weighted- Average Grant Date Fair Value			Total Number of Stock Options		Weighted- Average Grant Date Fair Value
August 3, 2019		39,667		$	8.84	August 4, 2018		44,667	$	8.32
Granted		—			—	Granted		—		—
Exercised		(2,000	)		4.64	Exercised		—		—
Forfeited		—			—	Forfeited		—		—
Expired		—			—	Expired		—		—
November 2, 2019		37,667		$	9.06	November 3, 2018		44,667	$	8.32

	Thirty-Nine Weeks Ended						Thirty-Nine Weeks Ended
	November 2, 2019						November 3, 2018
	Total Number of Stock Options			Weighted- Average Grant Date Fair Value			Total Number of Stock Options			Weighted- Average Grant Date Fair Value
February 2, 2019		42,667		$	8.64	February 3, 2018		81,042		$	6.28
Granted		—			—	Granted		—			—
Exercised		(3,000	)		6.00	Exercised		(32,375	)		3.52
Forfeited		(2,000	)		4.57	Forfeited		—			—
Expired		—			—	Expired		(4,000	)		5.80
November 2, 2019		37,667		$	9.06	November 3, 2018		44,667		$	8.32

Restricted Stock Units for Non-Employee Directors

Equity-based grants may be made to non-employee directors in the form of restricted stock units ("RSUs") payable in cash or common stock at no cost to the non-employee director.  The RSUs earn dividend equivalents at the same rate as dividends on the Company's common stock.  The dividend equivalents, which vest immediately, are automatically re-invested in additional RSUs.  Expense related to the initial grant of RSUs is recognized ratably over the vesting period based upon the fair value of the RSUs.  The RSUs payable in cash are remeasured at the end of each period.  Expense for the dividend equivalents is recognized at fair value when the dividend equivalents are granted.  The Company granted 1,350 and 780 RSUs to non-employee directors for dividend equivalents, during the thirteen weeks ended November 2, 2019 and November 3, 2018, respectively, with weighted-average grant date fair values of $23.27 and $35.66, respectively.  The Company granted 55,679 and 38,728 RSUs to non-employee directors, including 4,023 and 2,308 RSUs for dividend equivalents, during the thirty-nine weeks ended November 2, 2019 and November 3, 2018, respectively, with weighted-average grant date fair values of $19.59 and $34.33, respectively.