(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth Company |
Page | ||||||||
July 31, 2021 | January 30, 2021 | August 1, 2020 | |||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Accounts receivable, net | |||||||||||||||||
Merchandise inventories | |||||||||||||||||
Prepaid expenses and other current assets | |||||||||||||||||
Total current assets | |||||||||||||||||
Operating lease right-of-use assets, net | |||||||||||||||||
Property and equipment: | |||||||||||||||||
Land and buildings | |||||||||||||||||
Leasehold costs and improvements | |||||||||||||||||
Furniture, fixtures and equipment | |||||||||||||||||
Construction in progress | |||||||||||||||||
Less: accumulated depreciation and amortization | ( | ( | ( | ||||||||||||||
Total property and equipment, net | |||||||||||||||||
Goodwill | |||||||||||||||||
Intangibles, net | |||||||||||||||||
Deferred income taxes | |||||||||||||||||
Other assets | |||||||||||||||||
Total assets | $ | $ | $ | ||||||||||||||
LIABILITIES | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Current portion of long-term debt | $ | $ | $ | ||||||||||||||
Current portion of operating lease liabilities | |||||||||||||||||
Accounts payable | |||||||||||||||||
Accrued expenses and other current liabilities | |||||||||||||||||
Total current liabilities | |||||||||||||||||
Long-term operating lease liabilities | |||||||||||||||||
Long-term debt | |||||||||||||||||
Deferred income taxes | |||||||||||||||||
Other non-current liabilities | |||||||||||||||||
Commitments and contingencies (see Note 6) | |||||||||||||||||
STOCKHOLDERS’ EQUITY | |||||||||||||||||
Preferred stock; par value $ | |||||||||||||||||
Common stock, par value $ | |||||||||||||||||
Additional paid-in capital | |||||||||||||||||
Accumulated deficit | ( | ( | ( | ||||||||||||||
Accumulated other comprehensive loss | ( | ( | ( | ||||||||||||||
Treasury stock, at cost, | ( | ( | ( | ||||||||||||||
Total stockholders’ equity | |||||||||||||||||
Total liabilities and stockholders’ equity | $ | $ | $ |
Thirteen Weeks Ended | |||||||||||
July 31, 2021 | August 1, 2020 | ||||||||||
Net sales | $ | $ | |||||||||
Membership fee income | |||||||||||
Total revenues | |||||||||||
Cost of sales | |||||||||||
Selling, general and administrative expenses | |||||||||||
Pre-opening expense | |||||||||||
Operating income | |||||||||||
Interest expense, net | |||||||||||
Income from continuing operations before income taxes | |||||||||||
Provision for income taxes | |||||||||||
Income from continuing operations | |||||||||||
Loss from discontinued operations, net of income taxes | ( | ( | |||||||||
Net income | $ | $ | |||||||||
Income per share attributable to common stockholders—basic: | |||||||||||
Income from continuing operations | $ | $ | |||||||||
Loss from discontinued operations | |||||||||||
Net income | $ | $ | |||||||||
Income per share attributable to common stockholders—diluted: | |||||||||||
Income from continuing operations | $ | $ | |||||||||
Loss from discontinued operations | |||||||||||
Net income | $ | $ | |||||||||
Weighted average number of common shares outstanding: | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Other comprehensive income: | |||||||||||
Amounts reclassified from other comprehensive income, net of tax | $ | $ | |||||||||
Unrealized gain on cash flow hedge, net of income tax provision of $ | |||||||||||
Total other comprehensive income | |||||||||||
Total comprehensive income | $ | $ |
Twenty-Six Weeks Ended | |||||||||||
July 31, 2021 | August 1, 2020 | ||||||||||
Net sales | $ | $ | |||||||||
Membership fee income | |||||||||||
Total revenues | |||||||||||
Cost of sales | |||||||||||
Selling, general and administrative expenses | |||||||||||
Pre-opening expense | |||||||||||
Operating income | |||||||||||
Interest expense, net | |||||||||||
Income from continuing operations before income taxes | |||||||||||
Provision for income taxes | |||||||||||
Income from continuing operations | |||||||||||
Loss from discontinued operations, net of income taxes | ( | ( | |||||||||
Net income | $ | $ | |||||||||
Income per share attributable to common stockholders—basic: | |||||||||||
Income from continuing operations | $ | $ | |||||||||
Loss from discontinued operations | |||||||||||
Net income | $ | $ | |||||||||
Income per share attributable to common stockholders—diluted: | |||||||||||
Income from continuing operations | $ | $ | |||||||||
Loss from discontinued operations | |||||||||||
Net income | $ | $ | |||||||||
Weighted average number of common shares outstanding: | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Other comprehensive income (loss): | |||||||||||
Amounts reclassified from other comprehensive income, net of tax | $ | $ | |||||||||
Unrealized gain (loss) on cash flow hedge, net of income tax provision of $ | ( | ||||||||||
Total other comprehensive income (loss) | ( | ||||||||||
Total comprehensive income | $ | $ |
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance, January 30, 2021 | $ | $ | $ | ( | $ | ( | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Amount reclassified from other comprehensive income (loss), net of tax | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Unrealized gain on cash flow hedge, net of tax | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Common stock issued under stock incentive plans | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net cash received on option exercises | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | — | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance, May 1, 2021 | $ | $ | $ | ( | $ | ( | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Amount reclassified from other comprehensive income (loss), net of tax | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Unrealized gain on cash flow hedge, net of tax | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Common stock issued under stock incentive plans | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Common stock issued under Employees Stock Purchase Plan (ESPP) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net cash received on option exercises | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | — | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance, July 31, 2021 | $ | $ | $ | ( | $ | ( | ( | $ | ( | $ |
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Total Stockholders' Equity (Deficit) | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance, February 1, 2020 | $ | $ | $ | ( | $ | ( | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Unrealized loss on cash flow, net of tax | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Common stock issued under stock incentive plans | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net cash received on option exercises | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | — | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance, May 2, 2020 | $ | $ | $ | ( | $ | ( | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Unrealized gain on cash flow hedge, net of tax | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Common stock issued under stock incentive plans | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Common stock issued under Employee Stock Purchase Plan (ESPP) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net cash received on option exercises | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | — | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance, August 1, 2020 | $ | $ | $ | ( | $ | ( | ( | $ | ( | $ |
Twenty-Six Weeks Ended | |||||||||||
July 31, 2021 | August 1, 2020 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of debt issuance costs and accretion of original issue discount | |||||||||||
Debt extinguishment charges | |||||||||||
Stock-based compensation expense | |||||||||||
Deferred income tax (benefit) provision | ( | ||||||||||
Changes in operating leases and other non-cash items | |||||||||||
Increase (decrease) in cash due to changes in: | |||||||||||
Accounts receivable | |||||||||||
Merchandise inventories | |||||||||||
Prepaid expenses and other current assets | ( | ( | |||||||||
Other assets | ( | ||||||||||
Accounts payable | |||||||||||
Accrued expenses | |||||||||||
Other non-current liabilities | |||||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Additions to property and equipment, net of disposals | ( | ( | |||||||||
Proceeds from sale leaseback transactions | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Payments on First Lien Term Loan | ( | ( | |||||||||
Proceeds from ABL Facility | |||||||||||
Payments on ABL Facility | ( | ( | |||||||||
Net cash received from stock option exercises | |||||||||||
Net cash received from ESPP | |||||||||||
Acquisition of treasury stock | ( | ( | |||||||||
Proceeds from financing obligations | |||||||||||
Other financing activities | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net (decrease) increase in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental cash flow information: | |||||||||||
Interest paid | $ | $ | |||||||||
Income taxes paid | |||||||||||
Non-cash financing and investing activities: | |||||||||||
Lease liabilities arising from obtaining right-of-use assets | |||||||||||
Property additions included in accrued expenses |
Thirteen Weeks Ended | |||||||||||
July 31, 2021 | August 1, 2020 | ||||||||||
Grocery | % | % | |||||||||
General Merchandise & Services | % | % | |||||||||
Gasoline and Other | % | % |
Twenty-Six Weeks Ended | |||||||||||
July 31, 2021 | August 1, 2020 | ||||||||||
Grocery | % | % | |||||||||
General Merchandise & Services | % | % | |||||||||
Gasoline and Other | % | % |
July 31, 2021 | January 30, 2021 | August 1, 2020 | |||||||||||||||
ABL Facility | $ | $ | $ | ||||||||||||||
First Lien Term Loan | |||||||||||||||||
Unamortized debt discount and debt issuance cost | ( | ( | ( | ||||||||||||||
Less: current portion | ( | ||||||||||||||||
Long-term debt | $ | $ | $ |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||||||||
July 31, 2021 | August 1, 2020 | July 31, 2021 | August 1, 2020 | ||||||||||||||||||||
Interest on debt | $ | $ | $ | $ | |||||||||||||||||||
Interest on capital lease and financing obligations | |||||||||||||||||||||||
Debt issuance costs amortization | |||||||||||||||||||||||
Original issue discount amortization | |||||||||||||||||||||||
Loss on debt extinguishment | |||||||||||||||||||||||
Loss on cash flow hedge | |||||||||||||||||||||||
Capitalized interest | ( | ( | ( | ||||||||||||||||||||
Interest expense, net | $ | $ | $ | $ |
Stock Options | Restricted Stock | Restricted Stock Units | Performance Stock | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Weighted Average Exercise Price | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||||||||||||||||||||||||||
Outstanding, January 30, 2021 | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Granted | |||||||||||||||||||||||||||||||||||||||||||||||
Forfeited/canceled | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Exercised/vested | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Outstanding, July 31, 2021 | $ | $ | $ | $ |
Carrying Amount | Fair Value | ||||||||||
First Lien Term Loan | $ | $ | |||||||||
ABL Facility | |||||||||||
Total Debt | $ | $ |
Carrying Amount | Fair Value | ||||||||||
First Lien Term Loan | $ | $ | |||||||||
ABL Facility | |||||||||||
Total Debt | $ | $ |
Carrying Amount | Fair Value | ||||||||||
First Lien Term Loan | $ | $ | |||||||||
ABL Facility | |||||||||||
Total Debt | $ | $ |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||||||||
July 31, 2021 | August 1, 2020 | July 31, 2021 | August 1, 2020 | ||||||||||||||||||||
Weighted-average common shares outstanding, used for basic computation | |||||||||||||||||||||||
Plus: Incremental shares of potentially dilutive securities | |||||||||||||||||||||||
Weighted-average number of common and dilutive potential common shares outstanding |
Fair Value at | ||||||||||||||||||||||||||||||||||||||
Accounting for cash flow hedges | Notional Amount | Fixed Rate | Balance Sheet Classification | July 31, 2021 | January 30, 2021 | August 1, 2020 | ||||||||||||||||||||||||||||||||
Interest rate swap | $ | % | Other current liabilities | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||||
Interest rate swap | % | Other current liabilities | ( | |||||||||||||||||||||||||||||||||||
Interest rate swap | % | Other current liabilities | ( | ( | ( | |||||||||||||||||||||||||||||||||
Net carrying amount | $ | Total liabilities | $ | ( | $ | ( | $ | ( |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||||||||
July 31, 2021 | August 1, 2020 | July 31, 2021 | August 1, 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Income from continuing operations | $ | 110,997 | $ | 106,668 | $ | 192,583 | $ | 202,410 | |||||||||||||||
Interest expense, net | 16,428 | 20,741 | 35,713 | 42,585 | |||||||||||||||||||
Provision for income taxes | 36,359 | 36,186 | 61,742 | 62,350 | |||||||||||||||||||
Depreciation and amortization | 45,448 | 41,332 | 89,834 | 82,171 | |||||||||||||||||||
Stock-based compensation expense (a) | 7,334 | 9,064 | 34,634 | 14,578 | |||||||||||||||||||
Pre-opening expenses (b) | 1,633 | 1,969 | 2,194 | 4,570 | |||||||||||||||||||
Non-cash rent (c) | 1,765 | 511 | 3,182 | 2,015 | |||||||||||||||||||
Severance charges (d) | — | — | 2,300 | — | |||||||||||||||||||
Other adjustments (e) | 176 | 379 | 367 | 86 | |||||||||||||||||||
Adjusted EBITDA | $ | 220,140 | $ | 216,850 | $ | 422,549 | $ | 410,765 | |||||||||||||||
Adjusted EBITDA as a percentage of net sales | 5.4 | % | 5.6 | % | 5.4 | % | 5.4 | % |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||||||||
(in thousands) | July 31, 2021 | August 1, 2020 | July 31, 2021 | August 1, 2020 | |||||||||||||||||||
Net cash provided by operating activities | $ | 310,348 | $ | 263,790 | $ | 559,313 | $ | 733,692 | |||||||||||||||
Less: Additions to property and equipment, net of disposals | 73,118 | 47,750 | 147,808 | 82,962 | |||||||||||||||||||
Plus: Proceeds from sale leaseback transactions | 2,450 | 4,061 | 19,080 | 4,061 | |||||||||||||||||||
Free cash flow | $ | 239,680 | $ | 220,101 | $ | 430,585 | $ | 654,791 |
Statement of Operations Data | Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||||||||
(dollars in thousands) | July 31, 2021 | August 1, 2020 | July 31, 2021 | August 1, 2020 | |||||||||||||||||||
Net sales | $ | 4,088,402 | $ | 3,871,640 | $ | 7,870,236 | $ | 7,589,680 | |||||||||||||||
Membership fee income | 88,753 | 82,490 | 175,141 | 162,055 | |||||||||||||||||||
Total revenues | 4,177,155 | 3,954,130 | 8,045,377 | 7,751,735 | |||||||||||||||||||
Cost of sales | 3,413,625 | 3,197,752 | 6,555,122 | 6,258,645 | |||||||||||||||||||
Selling, general and administrative expenses | 598,113 | 590,814 | 1,198,023 | 1,181,175 | |||||||||||||||||||
Pre-opening expenses | 1,633 | 1,969 | 2,194 | 4,570 | |||||||||||||||||||
Operating income | 163,784 | 163,595 | 290,038 | 307,345 | |||||||||||||||||||
Interest expense, net | 16,428 | 20,741 | 35,713 | 42,585 | |||||||||||||||||||
Income from continuing operations before income taxes | 147,356 | 142,854 | 254,325 | 264,760 | |||||||||||||||||||
Provision for income taxes | 36,359 | 36,186 | 61,742 | 62,350 | |||||||||||||||||||
Income from continuing operations | 110,997 | 106,668 | 192,583 | 202,410 | |||||||||||||||||||
Loss from discontinued operations, net of income taxes | (9) | (50) | (16) | (58) | |||||||||||||||||||
Net income | $ | 110,988 | $ | 106,618 | $ | 192,567 | $ | 202,352 | |||||||||||||||
Operational Data: | |||||||||||||||||||||||
Total clubs at end of period | 222 | 219 | 222 | 219 | |||||||||||||||||||
Comparable club sales | 4.0 | % | 17.2 | % | 2.2 | % | 18.5 | % | |||||||||||||||
Merchandise comparable club sales | (3.4) | % | 24.2 | % | (4.2) | % | 25.6 | % | |||||||||||||||
Adjusted EBITDA | $ | 220,140 | $ | 216,850 | $ | 422,549 | $ | 410,765 | |||||||||||||||
Free cash flow | 239,680 | 220,101 | 430,585 | 654,791 |
Thirteen Weeks Ended | |||||
July 31, 2021 | |||||
Comparable club sales | 4.0 | % | |||
Less: contribution from gasoline sales | 7.4 | % | |||
Merchandise comparable club sales | (3.4) | % |
Twenty-Six Weeks Ended | |||||
July 31, 2021 | |||||
Comparable club sales | 2.2 | % | |||
Less: contribution from gasoline sales | 6.4 | % | |||
Merchandise comparable club sales | (4.2) | % |
Twenty-Six Weeks | ||||||||||||||
July 31, 2021 | August 1, 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Net cash provided by operating activities | $ | 559,313 | $ | 733,692 | ||||||||||
Net cash used in investing activities | (128,728) | (78,901) | ||||||||||||
Net cash used in financing activities | (431,689) | (516,184) | ||||||||||||
Net (decrease) increase in cash and cash equivalents | $ | (1,104) | $ | 138,607 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) | |||||||||||||||||||||||||
May 2, 2021 to May 29, 2021 | 250,000 | $ | 45.67 | 250,000 | $ | 124,963,483 | |||||||||||||||||||||||
May 30, 2021 to July 3, 2021 | 600,421 | (2) | 46.88 | 480,000 | 102,459,857 | ||||||||||||||||||||||||
July 4, 2021 to July 31, 2021 | 324,116 | 48.35 | 324,116 | 86,788,245 | |||||||||||||||||||||||||
Total | 1,174,537 | $ | 47.03 | 1,054,116 | $ | 86,788,245 |
Exhibit Number | Exhibit Description | ||||
10.1# | |||||
10.2# | |||||
10.3# | |||||
10.4# | |||||
10.5# | |||||
10.6# | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101.INS | Inline XBRL Instance Document (filed herewith) | ||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document (filed herewith) | ||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith) | ||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document (filed herewith) | ||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document (filed herewith) | ||||
101.PRE | Inline XBRL Taxonomy Extension Linkbase Document (filed herewith) | ||||
104 | Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*) (filed herewith) |
BJ’S WHOLESALE CLUB HOLDINGS, INC. | ||||||||
Date: August 26, 2021 | By: | /s/ Laura L. Felice | ||||||
Laura L. Felice | ||||||||
Executive Vice President, Chief Financial Officer (Principal Financial Officer and Authorized Signatory) |
Date: August 26, 2021 | ||||||||
By: | /s/ Robert W. Eddy | |||||||
Robert W. Eddy | ||||||||
President and Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: August 26, 2021 | ||||||||
By: | /s/ Laura L. Felice | |||||||
Laura L. Felice | ||||||||
Executive Vice President, Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Date: August 26, 2021 | ||||||||
By: | /s/ Robert W. Eddy | |||||||
Robert W. Eddy | ||||||||
President and Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: August 26, 2021 | ||||||||
By: | /s/ Laura L. Felice | |||||||
Laura L. Felice | ||||||||
Executive Vice President, Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Consolidated Balance Sheets (Parentheticals) - $ / shares |
Jul. 31, 2021 |
Jan. 30, 2021 |
Aug. 01, 2020 |
---|---|---|---|
Statement of Financial Position [Abstract] | |||
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 | 300,000,000 |
Common stock, issued (in shares) | 144,300,000 | 143,428,000 | 142,653,000 |
Common stock, outstanding (in shares) | 136,347,000 | 137,192,000 | 137,923,000 |
Treasury stock (in shares) | 7,953,000 | 6,236,000 | 4,730,000 |
Consolidated Statements of Operations and Comprehensive Income (Parentheticals) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2021 |
Aug. 01, 2020 |
Jul. 31, 2021 |
Aug. 01, 2020 |
|
Income Statement [Abstract] | ||||
Unrealized gain (loss) on cash flow hedge, tax provision (benefit) | $ 1,143 | $ 1,897 | $ 2,383 | $ (3,524) |
Description of Business |
6 Months Ended |
---|---|
Jul. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business BJ’s Wholesale Club Holdings, Inc. and its wholly-owned subsidiaries is a leading warehouse club operator primarily on the east coast of the United States. As of July 31, 2021, the Company operated 222 warehouse clubs and 151 gas stations in 17 states. The Company follows and reports based on the National Retail Federation’s fiscal calendar. The thirteen week periods ended July 31, 2021 and August 1, 2020 are referred to as the "second quarter of fiscal year 2021" and the "second quarter of fiscal year 2020," respectively. The novel coronavirus ("COVID-19") pandemic has severely impacted the economies of the U.S. and other countries around the world. In the preparation of these financial statements and related disclosures we have assessed the impact that COVID-19 has had on our estimates, assumptions and accounting policies and made additional disclosures, as necessary.
|
Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying interim financial statements of BJ’s Wholesale Club Holdings, Inc. are unaudited and, in the opinion of management, reflect all normal recurring adjustments considered necessary for a fair statement of the Company’s financial statements in accordance with generally accepted accounting principles in the United States of America ("GAAP"). The consolidated balance sheet as of January 30, 2021 is derived from the audited consolidated balance sheet as of that date. The unaudited results of operations for the second quarter of fiscal year 2021 are not necessarily indicative of future results or results to be expected for fiscal year 2021. The Company’s business, in common with the business of retailers generally, is subject to seasonal influences. The Company’s sales and operating income have typically been highest in the fourth quarter holiday season and lowest in the first quarter of each fiscal year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year 2020, as filed with the Securities and Exchange Commission on March 19, 2021. Revision of Previously Issued Financial Statements Management identified a misstatement related to the supplemental cash flow statement disclosure of property additions included in accrued expenses within the previously issued Form 10-Q for the quarter ended August 1, 2020. The previously disclosed amount for "property additions included in accrued expenses" was overstated by $63.1 million. We assessed the materiality of the misstatement both quantitatively and qualitatively, and concluded it was not material to the Company’s previously issued Form 10-Q for the quarter ended August 1, 2020. However, included within this filing, we elected to revise the previously reported amounts in the consolidated statements of cash flows to correct the misstatement. Recently Adopted Accounting Pronouncements The accounting policies the Company follows are set forth in its audited financial statements for fiscal year 2020. There have been no material changes to these accounting policies, except as noted below for new accounting pronouncements adopted at the beginning of fiscal year 2021. Income Taxes (ASU 2019-12) In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). This standard simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Accounting Standards Codification 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The standard also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted this standard as of January 31, 2021. The adoption of this standard did not have a material impact on the Company's consolidated financial statements.
|
Revenue Recognition |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition Performance Obligations The Company identifies each distinct performance obligation to transfer goods (or bundle of goods) or services. The Company recognizes revenue as it satisfies a performance obligation by transferring control of the goods or services to the customer. Net sales—The Company recognizes net sales at clubs and gas stations when the customer takes possession of the goods and tenders payment. Point of sale transactions at the Company’s clubs and gas stations, excluding sales taxes, represented approximately 93% of the Company’s net sales and approximately 91% of the Company’s total revenues for both the thirteen and twenty-six weeks ended July 31, 2021. Point of sale transactions at the Company’s clubs and gas stations, excluding sales taxes, represented approximately 96% of the Company’s net sales and approximately 94% of the Company’s total revenues for both the thirteen and twenty-six weeks ended August 1, 2020. Sales taxes are recorded as a liability at the point of sale. Revenue is recorded at the point of sale based on the transaction price on the shelf sign, net of any applicable discounts, sales taxes and expected refunds. For e-commerce sales, the Company recognizes sales when control of the merchandise is transferred to the customer, which is typically at the shipping point. BJ’s Perks Rewards and My BJ's Perks programs—The Company’s BJ’s Perks Rewards® membership program allows participating members to earn 2% cash back, up to a maximum of $500 per year, on qualified purchases made at BJ’s. The Company also offers a co-branded credit card program, the My BJ’s Perks® program, which allows My BJ's Perks® Mastercard credit card holders to earn up to 5% cash back on eligible purchases made at BJ’s and up to 2% cash back on purchases made with the card outside of BJ’s. Cash back has been in the form of electronic awards issued in $10 increments that may be used online or in-club at the register and expire six months from the date issued. Earned awards may be redeemed on future purchases made at the Company. The Company recognizes revenue for earned awards when customers redeem such awards as part of a purchase at one of the Company’s clubs or on the Company's website or app. The Company accounts for these transactions as multiple element arrangements and allocates the transaction price to separate performance obligations using their relative fair values. The Company includes the fair value of award dollars earned in deferred revenue at the time the award dollars are earned. This liability was $25.8 million at July 31, 2021, $25.5 million at January 30, 2021 and $29.9 million at August 1, 2020. Royalty revenue received in connection with the My BJ's Perks co-brand credit card program is variable consideration and is considered deferred until the card holder makes a purchase. The Company’s total deferred royalty revenue related to the outstanding My BJ’s Perks Rewards was $18.8 million, $13.5 million and $15.0 million at July 31, 2021, January 30, 2021 and August 1, 2020, respectively. The timing of revenue recognition of these awards dollars is driven by actual customer activities, such as redemptions and expirations. As of July 31, 2021, the Company expects to recognize $12.4 million of the deferred revenue in fiscal year 2021 and expects the remainder to be recognized in the periods thereafter. Membership—The Company charges a membership fee to its customers. That fee allows customers to shop in the Company’s clubs, shop on the Company’s website and app and purchase gasoline at the Company’s gas stations for the duration of the membership, which is generally 12 months. As the Company has the obligation to provide access to its clubs, website, app and gas stations for the duration of the membership term, the Company recognizes membership fees on a straight-line basis over the life of the membership. The Company’s deferred revenue related to membership fees was $169.3 million, $155.6 million and $156.6 million at July 31, 2021, January 30, 2021 and August 1, 2020, respectively. Gift Card Program—The Company sells BJ’s gift cards in both physical and digital format, which allow customers to redeem the card for future purchases equal to the amount of the original purchase price of the gift card. Revenue from gift card sales is recognized in proportion to its rate of gift card redemptions as the Company’s performance obligation to redeem the gift card for merchandise is satisfied when the gift card is redeemed. The Company also recognizes breakage in proportion to its rate of gift card redemptions. Deferred revenue related to gift cards was $9.7 million, $10.3 million and $9.6 million at July 31, 2021, January 30, 2021 and August 1, 2020, respectively. The Company recognized $9.6 million and $9.4 million of revenue from gift card redemptions in the second quarter of fiscal year 2021 and second quarter of fiscal year 2020, respectively. The Company recognized $18.4 million and $19.5 million of revenue from gift card redemptions in the twenty-six weeks ended July 31, 2021 and August 1, 2020, respectively. Disaggregation of Revenue The Company’s club retail operations, which represent substantially all of its consolidated total revenues, are the Company’s only reportable segment. All the Company’s identifiable assets are in the United States. The Company does not have significant sales outside the United States, nor does any customer represent more than 10% of total revenues for any period presented. The following tables summarize the Company's percentage of net sales disaggregated by category:
|
Debt and Credit Arrangements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Credit Arrangements | Debt and Credit Arrangements The following table summarizes the Company's debt (in thousands):
ABL Facility The ABL Facility is comprised of a $950.0 million revolving credit facility and a $50.0 million term loan. The ABL Facility is secured on a senior basis by certain "liquid assets" of the Company and secured on a junior basis by certain "fixed assets" of the Company. Payment terms on the $50.0 million term loan are restricted in that the term loan cannot be repaid unless all loans outstanding under the revolving credit facility are repaid, and once repaid, cannot be re-borrowed. The availability under the $950.0 million revolving credit facility is restricted based on eligible monthly merchandise inventories and receivables as defined in the agreement governing the ABL Facility. As amended, interest on the revolving credit facility is calculated either at LIBOR plus a range of 125 to 175 basis points or a base rate plus a range of 25 to 75 basis points; and interest on the term loan is calculated at LIBOR plus a range of 200 to 250 basis points or a base rate plus a range of 100 to 150 basis points, in all cases based on excess availability. The applicable spread of LIBOR and base rate loans at all levels of excess availability steps down by 12.5 basis points upon achieving total net leverage of 3.00 to 1.00. The ABL Facility also provides a sub-facility for issuances of letters of credit subject to certain fees defined in the ABL Facility Agreement. The ABL Facility is subject to various commitment fees during the term of the facility based on utilization of the revolving credit facility, which is scheduled to mature on August 17, 2023. On April 30, 2021, the Company used $50.0 million of cash and cash equivalents to pay down amounts outstanding on the ABL Facility. On July 30, 2021, the Company used $210.0 million of cash and cash equivalents to pay $210.0 million of the principal amount outstanding on the ABL Facility. At July 31, 2021, there were $50.0 million outstanding in loans under the ABL Facility and $24.1 million in outstanding letters of credit. As of July 31, 2021, the interest rate on the revolving credit facility was 1.23%, the interest rate of the term loan was 2.10% and unused capacity was $768.2 million. At January 30, 2021, there were $310.0 million outstanding in loans under the ABL Facility and $15.0 million in outstanding letters of credit. As of January 30, 2021, the interest rate on the revolving credit facility was 1.25%, the interest rate of the term loan was 2.14% and unused capacity was $641.1 million. At August 1, 2020, there were $50.0 million outstanding in loans under the ABL Facility and $19.2 million in outstanding letters of credit. As of August 1, 2020, the interest rate on the revolving credit facility was 1.29%, the interest rate of the term loan was 2.16% and unused capacity was $741.4 million. First Lien Term Loan The Company's First Lien Term Loan matures on February 3, 2024. Voluntary prepayments are permitted. Principal payments must be made on the First Lien Term Loan pursuant to an annual excess cash flow calculation when the net leverage ratio exceeds 3.50 to 1.00. The First Lien Term Loan is subject to certain affirmative and negative covenants but no financial covenants. It is secured on a senior basis by certain "fixed assets" of the Company and on a junior basis by certain "liquid" assets of the Company. On July 13, 2020, the Company paid $150.0 million of the principal amount outstanding on the First Lien Term Loan. In connection with the payment, the Company expensed $1.3 million of previously capitalized deferred debt issuance costs and original issue discount. On July 29, 2020, upon the achievement of certain credit ratings upgrades, the base rate was reduced to LIBOR plus 200 basis points. On October 30, 2020, the Company borrowed $260.0 million from the ABL Facility. The proceeds from the Company's borrowing and $100.0 million of the Company's cash and cash equivalents were used to pay $360.0 million of the principal amount outstanding on the First Lien Term Loan. In connection with the payment, the Company expensed $2.8 million of previously capitalized debt issuance costs and original issue discount. On April 30, 2021, the Company used $100.0 million of cash and cash equivalents to pay $100.0 million of the principal amount outstanding on the First Lien Term Loan. In connection with the payment, the Company expensed $0.7 million of previously capitalized debt issuance costs and original issue discount. There were $701.9 million, $801.9 million and $1,161.9 million outstanding on the First Lien Term Loan at July 31, 2021, January 30, 2021 and August 1, 2020, respectively. Interest rates for the First Lien Term Loan were 2.10%, 2.13% and 2.18% at July 31, 2021, January 30, 2021 and August 1, 2020, respectively.
|
Interest Expense, Net |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense, net | Interest Expense, net The following details the components of interest expense for the periods presented (in thousands):
|
Commitment and Contingencies |
6 Months Ended |
---|---|
Jul. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesThe Company is involved in various legal proceedings that are typical of a retail business. In accordance with applicable accounting guidance, an accrual will be established for legal proceedings if and when those matters present loss contingencies that are both probable and estimable. The Company does not believe the resolution of any current proceedings will result in a material loss to the consolidated financial statements. |
Stock Incentive Plans |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Incentive Plans | Stock Incentive Plans On June 13, 2018, the Company’s Board of Directors adopted, and its stockholders approved, the BJ's Wholesale Club Holdings, Inc. 2018 Incentive Award Plan (the "2018 Plan"). The 2018 Plan provides for the grant of stock options, restricted stock, dividend equivalents, stock payments, restricted stock units, performance shares, other incentive awards, stock appreciation rights, and cash awards. Prior to the adoption of the 2018 Plan, the Company granted stock-based compensation to employees and non-employee directors under the Fourth Amended and Restated 2011 Stock Option Plan of BJ's Wholesale Club, Inc. (f/k/a Beacon Holding Inc.), as amended (the "2011 Plan") and the 2012 Director Stock Option Plan of BJ’s Wholesale Club Holdings, Inc. (f/k/a Beacon Holding, Inc.), as amended (the "2012 Director Plan"). No further grants will be made under the 2011 Plan or the 2012 Director Plan. The 2018 Plan authorizes the issuance of 13,148,058 shares, including 985,369 shares that were reserved but not issued under the 2011 Plan and the 2012 Director Plan. If an award under the 2018 Plan, the 2011 Plan or the 2012 Director Plan is forfeited, expires or is settled for cash, any shares subject to such award may, to the extent of such forfeiture, expiration or cash settlement, be used again for new grants under the 2018 Plan. Additionally, shares tendered or withheld to satisfy grant or exercise price, or tax withholding obligations associated with an award under the 2018 Plan, the 2011 Plan or the 2012 Director Plan will be added to the shares authorized for grant under the 2018 Plan. The following shares may not be used again for grant under the 2018 Plan: (1) shares subject to a stock appreciation right ("SAR") that are not issued in connection with the stock settlement of the SAR upon its exercise and (2) shares purchased on the open market with the cash proceeds from the exercise of options under the 2018 Plan, 2011 Plan or 2012 Director Plan. As of July 31, 2021, there were 5,549,786 shares available for future issuance under the 2018 Plan. On April 16, 2021, the Compensation Committee approved a modification to the equity awards agreements under the 2011 Plan, 2012 Director Plan and 2018 Plan. In the event that an employee is terminated due to death or disability, the modified equity award agreements provide for: (i) full vesting of all time-based awards, including restricted stock awards and stock options, (ii) pro-rata vesting of all performance-based awards, including performance share units, based on actual performance as of the end of the applicable performance period, pro-rated based on the period of employment during the applicable performance period, and (iii) the extension of the post-termination exercise window for vested stock options. The following table summarizes the Company’s stock award activity during the twenty-six weeks ended July 31, 2021 (shares in thousands):
Stock-based compensation expense was $7.3 million and $9.1 million for the thirteen weeks ended July 31, 2021 and August 1, 2020, respectively. Stock-based compensation expense was $34.6 million and $14.6 million for the twenty-six weeks ended July 31, 2021 and August 1, 2020, respectively. Stock-based compensation expense in the twenty-six weeks ended July 31, 2021 included $17.5 million of stock-based compensation expense related to the modification of stock awards associated with the passing of the former President and Chief Executive Officer (CEO), Lee Delaney. On June 14, 2018, the Company’s Board of Directors adopted, and its stockholders approved, the BJ's Wholesale Club Holdings, Inc. Employee Stock Purchase Plan (the "ESPP"), which became effective July 1, 2018. The aggregate number of shares of common stock that were to be reserved for issuance under the ESPP was to be equal to the sum of (i) 973,014 shares and (ii) an annual increase on the first day of each calendar year beginning in 2019 and ending in 2028 equal to the lesser of (A) 486,507 shares, (B) 0.5% of the shares outstanding (on an as converted basis) on the last day of the immediately preceding fiscal year and (C) such smaller number of shares as determined by the board of directors. The offering under the ESPP commenced on January 1, 2019. The amount of expense recognized for the thirteen weeks ended July 31, 2021 and August 1, 2020 was $0.4 million and $0.2 million, respectively. The amount of expense recognized for the twenty-six weeks ended July 31, 2021 and August 1, 2020 was $0.5 million and $0.3 million, respectively. As of July 31, 2021, remaining shares available for issuance under the ESPP were 2,177,223. Treasury Shares Acquired The Company reacquired 120,421 shares to satisfy employees’ tax withholding obligations upon the vesting of restricted stock awards in the thirteen weeks ended July 31, 2021, which were recorded as $5.6 million of treasury stock. The Company reacquired 121,915 shares in the thirteen weeks ended August 1, 2020, which were recorded as $4.3 million of treasury stock. The Company reacquired 346,825 shares to satisfy employees’ tax withholding obligations upon the vesting of restricted stock awards in the twenty-six weeks ended July 31, 2021, which were recorded as $15.7 million of treasury stock. The Company reacquired 205,268 in the twenty-six weeks ended August 1, 2020, which were recorded as $6.4 million of treasury stock. Share Repurchase Program On December 19, 2019, the Company's Board of Directors authorized the repurchase of up to $250.0 million of the Company's outstanding common stock from time to time as market conditions warrant (the "Program"). The Program expires at the end of fiscal year 2021. The Company initiated the Program to mitigate potentially dilutive effects of stock options and shares of restricted stock granted by the Company, in addition to enhancing shareholder value. As of July 31, 2021, $86.8 million remained available to purchase under the Program. The Company repurchased 1,054,116 shares for $49.6 million and 924,282 shares for $34.1 million during the thirteen weeks ended July 31, 2021 and August 1, 2020, respectively. The Company repurchased 1,369,116 shares for $63.5 million and 1,099,282 shares for $38.1 million during the twenty-six weeks ended July 31, 2021 and August 1, 2020, respectively.
|
Income Taxes |
6 Months Ended |
---|---|
Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rate is based on estimated income from continuing operations for the fiscal year, as well as discrete adjustments, if any, in the applicable quarterly periods. The Company projects the estimated annual effective tax rate for fiscal year 2021 to be 26.8%, excluding the tax effect of discrete events, such as excess tax benefits from stock-based compensation, changes in tax legislation, settlements of tax audits and changes in uncertain tax positions, among others. The Company’s effective income tax rate from continuing operations was 24.7% and 25.3% for the thirteen weeks ended July 31, 2021 and August 1, 2020, respectively; and 24.3% and 23.5% for the twenty-six weeks ended July 31, 2021 and August 1, 2020, respectively. The decrease in the effective tax rate for the second quarter of fiscal year 2021 compared to the second quarter of fiscal year 2020 is due primarily to higher excess tax benefits from stock-based compensation in the second quarter of fiscal year 2021. The increase in the rate for the twenty-six weeks ending July 31, 2021 compared to the twenty-six weeks ended August 1, 2020 is due to lower excess tax benefits from stock-based compensation in the current year period coupled with favorable, permanent true-ups in the prior year period. The Company is subject to taxation in the U.S. federal and various state taxing jurisdictions. In general, the Company’s tax years from 2016 forward remain open and subject to examination by the Internal Revenue Service and various state taxing authorities; however, certain ongoing state audits and appeals relate to periods prior to 2016.
|
Fair Value Measurements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date or “exit price.” The inputs used to measure fair value are generally classified into the following hierarchy: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not observable for the asset or liability. Level 3: Unobservable inputs for the asset or liability. Assets and Liabilities Measured at Fair Value on a Recurring Basis The fair values of the Company’s derivative instruments are based on quotes received from third-party banks and represent the estimated amount the Company would pay to terminate the agreements taking into consideration current interest rates as well as the creditworthiness of the counterparties. These inputs are considered to be Level 2. Financial Assets and Liabilities The gross carrying amount and fair value of the Company’s debt at July 31, 2021 are as follows (in thousands):
The gross carrying amount and fair value of the Company’s debt at January 30, 2021 are as follows (in thousands):
The gross carrying amount and fair value of the Company’s debt at August 1, 2020 are as follows (in thousands):
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The Company measures certain non-financial assets and liabilities, including long-lived assets, at fair value on a non-recurring basis. The Company believes that the carrying amounts of its other financial instruments, including cash, accounts receivable, and accounts payable, approximates their carrying value due to the short-term maturities of these instruments.
|
Earnings Per Share |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The table below reconciles basic weighted-average common shares outstanding to diluted weighted-average common shares outstanding for the thirteen and twenty-six weeks ended July 31, 2021 and August 1, 2020:
As their inclusion would have been anti-dilutive, no options and 12,757 restricted shares were excluded from the computation of diluted earnings for the thirteen weeks ended July 31, 2021. No restricted shares and 229,767 stock options were excluded from the computation of diluted earnings for the thirteen weeks ended August 1, 2020. Similarly, no stock options and 62,758 restricted shares, were excluded from the computation of diluted earnings for the twenty-six weeks ended July 31, 2021. A total of 552,830 stock options and 390,128 restricted shares were excluded from the computation of diluted earnings for the twenty-six weeks ended August 1, 2020.
|
Derivative Financial Instruments |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments Interest Rate Swaps On November 13, 2018, the Company entered into three forward starting interest rate swaps (the "interest rate swaps"), which became effective on February 13, 2019. The Company fixed the LIBOR component of $1.2 billion of its floating rate debt at a rate of approximately 3.0% from February 13, 2019 to February 13, 2022. On October 30, 2020, the Company borrowed $260.0 million from the ABL Facility. The proceeds from the Company's borrowing, as well as $100.0 million of the Company's cash and cash equivalents, were used to pay $360.0 million of the principal amount outstanding on the First Lien Term Loan. Due to the payment of debt principal on the First Lien Term Loan, the Company determined that certain interest payments were no longer probable and a portion of one of the interest rate swap agreements would be ineffective as a result of the payment of debt, and as such, released $3.7 million recorded in other comprehensive income to interest expense, net of tax. On November 10, 2020, the Company terminated one of the interest rate swaps, which fixed $360.0 million of its floating rate debt at a rate of approximately 3.0%. An additional interest rate swap, which fixed $240.0 million of its floating rate debt at a rate of 3.0%, was determined to be ineffective. On April 30, 2021, the Company used $150.0 million of its cash and cash equivalents to pay $100.0 million of the principal amount outstanding on the First Lien Term Loan and $50.0 million of the outstanding amounts on the ABL Facility. The Company accelerated the release of unrealized losses into earnings on the ineffective interest rate swap agreements and reclassified $4.7 million recorded in other comprehensive income (loss) to interest expense, net of tax. On July 30, 2021, the Company used $210.0 million of its cash and cash equivalents to pay $210.0 million of the principal amount outstanding on the ABL Facility. The Company accelerated the release of unrealized losses into earnings on the ineffective interest rate swap agreements and reclassified $3.5 million recorded in other comprehensive income (loss) to interest expense, net of tax. The interest rate swaps were recorded as a liability of $14.5 million and $26.4 million at July 31, 2021 and January 30, 2021, respectively. The net of tax amount for the effective and ineffective interest rate swaps were recorded in other comprehensive income and interest expense, respectively. The interest rate swaps were recorded as a liability of $53.5 million at August 1, 2020, with the net of tax amount recorded in other comprehensive loss. The Company elected hedge accounting for the interest rate swap agreements, and as such, the effective portion of the gains or losses were recorded as a component of other comprehensive income (loss) and the ineffective portion of gains or losses were recorded as interest expense. There were gains of $4.1 million and $6.8 million recorded in other comprehensive income for the thirteen weeks ended July 31, 2021 and August 1, 2020, respectively. There were $8.5 million of gains and $12.6 million of losses recorded in other comprehensive income (loss) for the twenty-six weeks ended July 31, 2021 and August 1, 2020, respectively. The ineffective portion of gains in the second quarter and first half of fiscal year 2021 of $1.6 million and $3.4 million, respectively, were recorded in interest expense. In the second quarter and first half of fiscal year 2020, all interest rate swap agreements were effective. The fair values of derivative instruments included on the consolidated balance sheets are as follows (in thousands):
|
Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
---|---|
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim financial statements of BJ’s Wholesale Club Holdings, Inc. are unaudited and, in the opinion of management, reflect all normal recurring adjustments considered necessary for a fair statement of the Company’s financial statements in accordance with generally accepted accounting principles in the United States of America ("GAAP"). The consolidated balance sheet as of January 30, 2021 is derived from the audited consolidated balance sheet as of that date. The unaudited results of operations for the second quarter of fiscal year 2021 are not necessarily indicative of future results or results to be expected for fiscal year 2021. The Company’s business, in common with the business of retailers generally, is subject to seasonal influences. The Company’s sales and operating income have typically been highest in the fourth quarter holiday season and lowest in the first quarter of each fiscal year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year 2020, as filed with the Securities and Exchange Commission on March 19, 2021.
|
Revision of Previously Issued Financial Statements | Revision of Previously Issued Financial Statements Management identified a misstatement related to the supplemental cash flow statement disclosure of property additions included in accrued expenses within the previously issued Form 10-Q for the quarter ended August 1, 2020. The previously disclosed amount for "property additions included in accrued expenses" was overstated by $63.1 million. We assessed the materiality of the misstatement both quantitatively and qualitatively, and concluded it was not material to the Company’s previously issued Form 10-Q for the quarter ended August 1, 2020. However, included within this filing, we elected to revise the previously reported amounts in the consolidated statements of cash flows to correct the misstatement.
|
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements The accounting policies the Company follows are set forth in its audited financial statements for fiscal year 2020. There have been no material changes to these accounting policies, except as noted below for new accounting pronouncements adopted at the beginning of fiscal year 2021. Income Taxes (ASU 2019-12) In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). This standard simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Accounting Standards Codification 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The standard also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted this standard as of January 31, 2021. The adoption of this standard did not have a material impact on the Company's consolidated financial statements.
|
Revenue Recognition (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of revenue | The following tables summarize the Company's percentage of net sales disaggregated by category:
|
Debt and Credit Arrangements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt | The following table summarizes the Company's debt (in thousands):
|
Interest Expense, Net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of interest expense | The following details the components of interest expense for the periods presented (in thousands):
|
Stock Incentive Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock award activity | The following table summarizes the Company’s stock award activity during the twenty-six weeks ended July 31, 2021 (shares in thousands):
|
Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross carrying amount and fair value of debt | The gross carrying amount and fair value of the Company’s debt at July 31, 2021 are as follows (in thousands):
The gross carrying amount and fair value of the Company’s debt at January 30, 2021 are as follows (in thousands):
The gross carrying amount and fair value of the Company’s debt at August 1, 2020 are as follows (in thousands):
|
Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share | The table below reconciles basic weighted-average common shares outstanding to diluted weighted-average common shares outstanding for the thirteen and twenty-six weeks ended July 31, 2021 and August 1, 2020:
|
Derivative Financial Instruments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair values of derivative instruments by balance sheet location |
|
Description of Business (Details Textual) |
Jul. 31, 2021
state
gas_station
store
|
---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of stores | store | 222 |
Number of gas stations | gas_station | 151 |
Number of states in which entity operates | state | 17 |
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jul. 31, 2021 |
Aug. 01, 2020 |
|
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Property additions included in accrued expenses | $ (18,044) | $ (6,977) |
Revision of Prior Period, Error Correction, Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Property additions included in accrued expenses | $ 63,100 |
Revenue Recognition - Percentage of Net Sales Disaggregated by Category (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2021 |
Aug. 01, 2020 |
Jul. 31, 2021 |
Aug. 01, 2020 |
|
Grocery | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales percentage | 70.00% | 76.00% | 71.00% | 79.00% |
General Merchandise & Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales percentage | 15.00% | 16.00% | 15.00% | 13.00% |
Gasoline and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales percentage | 15.00% | 8.00% | 14.00% | 8.00% |
Debt and Credit Arrangements - Debt Components (Details) - USD ($) $ in Thousands |
Jul. 31, 2021 |
Jan. 30, 2021 |
Aug. 01, 2020 |
---|---|---|---|
Carrying Amount | $ 751,920 | $ 1,111,920 | $ 1,211,920 |
Unamortized debt discount and debt issuance cost | (4,190) | (5,745) | (9,711) |
Less: current portion | 0 | (260,000) | 0 |
Long-term debt | 747,730 | 846,175 | 1,202,209 |
ABL Facility | |||
Carrying Amount | 50,000 | 310,000 | 50,000 |
First Lien Term Loan | |||
Carrying Amount | $ 701,920 | $ 801,920 | $ 1,161,920 |
Interest Expense, Net - Components of Interest Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2021 |
Aug. 01, 2020 |
Jul. 31, 2021 |
Aug. 01, 2020 |
|
Other Income and Expenses [Abstract] | ||||
Interest on debt | $ 11,369 | $ 17,302 | $ 23,400 | $ 36,945 |
Interest on capital lease and financing obligations | 982 | 991 | 1,980 | 1,999 |
Debt issuance costs amortization | 544 | 648 | 1,106 | 1,305 |
Original issue discount amortization | 288 | 519 | 618 | 1,058 |
Loss on debt extinguishment | 0 | 1,283 | 657 | 1,283 |
Loss on cash flow hedge | 3,245 | 0 | 7,954 | 0 |
Capitalized interest | 0 | (2) | (2) | (5) |
Interest expense, net | $ 16,428 | $ 20,741 | $ 35,713 | $ 42,585 |
Income Taxes (Details) |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jul. 31, 2021 |
Aug. 01, 2020 |
Jul. 31, 2021 |
Aug. 01, 2020 |
Jan. 29, 2022 |
|
Income Tax Contingency [Line Items] | |||||
Effective tax rate | 24.70% | 25.30% | 24.30% | 23.50% | |
Forecast | |||||
Income Tax Contingency [Line Items] | |||||
Effective tax rate | 26.80% |
Fair Value Measurements (Details) - USD ($) $ in Thousands |
Jul. 31, 2021 |
Jan. 30, 2021 |
Aug. 01, 2020 |
---|---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount | $ 751,920 | $ 1,111,920 | $ 1,211,920 |
Fair Value | 750,032 | 1,112,256 | 1,194,956 |
First Lien Term Loan | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount | 701,920 | 801,920 | 1,161,920 |
Fair Value | 700,032 | 802,256 | 1,144,956 |
ABL Facility | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount | 50,000 | 310,000 | 50,000 |
Fair Value | $ 50,000 | $ 310,000 | $ 50,000 |
Earnings Per Share - Summary of Basic and Diluted Net Income Per Share Attributable to Common Stockholders (Details) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2021 |
Aug. 01, 2020 |
Jul. 31, 2021 |
Aug. 01, 2020 |
|
Earnings Per Share [Abstract] | ||||
Weighted-average common shares outstanding, used for basic computation (in shares) | 135,521,353 | 136,706,284 | 135,615,068 | 136,398,122 |
Plus: Incremental shares of potentially dilutive securities (in shares) | 2,675,814 | 2,815,773 | 2,814,498 | 2,576,776 |
Weighted-average number of common and dilutive potential common shares outstanding (in shares) | 138,197,167 | 139,522,057 | 138,429,566 | 138,974,898 |
Earnings Per Share - Narrative (Details) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2021 |
Aug. 01, 2020 |
Jul. 31, 2021 |
Aug. 01, 2020 |
|
Options | ||||
Antidilutive securities excluded from computation of diluted earnings per share | 0 | 229,767 | 0 | 552,830 |
Restricted shares | ||||
Antidilutive securities excluded from computation of diluted earnings per share | 12,757 | 0 | 62,758 | 390,128 |
Derivative Financial Instruments - Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands |
Jul. 31, 2021 |
Jan. 30, 2021 |
Aug. 01, 2020 |
---|---|---|---|
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 1,200,000 | ||
Fair Value | (14,520) | $ (26,353) | $ (53,528) |
Interest Rate Swap 1 | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 600,000 | ||
Fixed Rate | 3.00% | ||
Fair Value | $ (10,374) | (18,828) | (26,777) |
Interest Rate Swap 2 | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 360,000 | ||
Fixed Rate | 3.00% | ||
Fair Value | $ 0 | 0 | (16,049) |
Interest Rate Swap 3 | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 240,000 | ||
Fixed Rate | 3.00% | ||
Fair Value | $ (4,146) | $ (7,525) | $ (10,702) |
"1DL< 910=&D9?1=27W6;X.Y",(2"WK]N93>BLK*#K'=S?&,7*N
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M"#U]0>G!;^FJZ4POF"J8MPV0Q&>-N[=D3+BM] B,\8@[ -[(]&[2?%S$;V:%@@V(SOV(#G:J1
MWH[^I9E#>O$X)';+OL!P(8V8O76!X6"&R=C,#?+-OJ>]?XD5TI0GT!JDSA2Z
M0$8X9=3N[+"(<208'YO#0=*97]*O#N7C>Q<=UI9'*16)31(1<+A1$Z<#0H$Q
MC<9\"QNDGOFE_NKE&NGJ E^L>EUW,_+UUP-&.-P68
M$'Q4*"8GP5CT[.=(Q^@A*K&@FQIDQ2N0E4F/C$+:#=@R1QRT]5RPL*1VG.H!
MW)
MM%J)NO #Q8"GWW1=I^UFUJIIU7_FS<#[PG3!I0&!.W*-SR:C '0S1)J-595O
MW*VR- :\N*>YB]H9T/E.*7OP7'K.#X?T'WOY(MSF70@39>>A64C9(+XGVI4!29JVII
M[VB_ME%Y78E"6VDS+8T(V*I0@I%/G[_]X;NGB_F3GX/X6#JC@C1*7)AF)5X[
MDT-"&(LW-IL(Z95HK&QR'54NI,W'D"TB]+E:6](-:96TJ'H2/J;JIC(5TAAA
MJ=@,7F6-]V26S#^A#I(5F0,=Y,I#K%69"H$0 #4)*0JI_=9@TD *+Y)[O>$'
M?=.6@? YEA0*,)9BK:SR,.>.5E3-?FR1K6%8IFM T#GVP;*OUR24P5I6P#*3
MXJ?1+\OEY>C!A/$F^Q&57-+FE32L,+&OY&-OI6W(IZ-9RG*!P,%?,%
_MIGVE[<
MD?22:M1 2&_6-3&!CKJ-PLO;K)1VS8&J=.#I '_OI =0\V?C-G^NU(T.+=6
M]FZT:P)B]":$!L)?]5Y=;[UZUS.2 ,>@T@M-92](2\\K7AG&!?YRJ30U:(!6
M("N3 ;%"0 <\E,-#XP*5 BRI/251!*ODP)J+;H@:*,:3>50;-L!A J'-C'KK
MA&Z=:.'\K8>SRQM%#5&:$?I"),).>/.WU^QWR=%"9&R8M
M,^!OG!Y\G^SE-LK6LLQ80L%!%4"LA0BO3D>R4Q8ODA"V"?N'($&Y,&^^.UO,
M%^_V:%8VQQBW+,GK)3Z4*6YW4:=D5\"CG$&H0N488N+I=D'D0:GAE"*>L #U])U+;"B8M9^
M^B0*:>)#2(N^0ZK(O 4!CT,HBWL_S89,[<5J9S)HP_#$- 2];5F$+Y::&K)B
M"$N;_N&",3]K@P'?SP^[OB<_SX\GLV>B-1B( HJE"/#;[YLIFP
M*T."=NSICA!^['"](J(3'+*8'$6'!$1Y4B%(LA7F&>A'S;/U3&3ID)90FCX
M,C
CSY&0#/NN4Z&[C8 AH&?QU]*X
M)
@=5RZ80
MO88;4S.9(62*D'O#,#F/^] ;A9/AB-;S<)(D?=B@,3/J$JVI7*%RF-3H;UY-
MTR1]#[UT[.GU.\U&R>*==0Q]D-