Form 10-Q |
☑ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
001-37501
|
80-0848819
|
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
6295 Allentown Boulevard
Suite 1
Harrisburg, Pennsylvania
|
17112
|
|
(Address of principal executive offices)
|
(Zip Code)
|
(717) 657-2300
|
(Registrant’s telephone number, including area code)
|
Title of Each Class
|
Trading Symbol
|
Name of each exchange on which registered
|
Common Stock, $0.001 par value
|
OLLI
|
The NASDAQ Stock Market LLC
|
Large accelerated filer ☒
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
Smaller reporting company ☐
|
Emerging growth company ☐
|
PART I - FINANCIAL INFORMATION
|
Page
|
|
Item 1.
|
1
|
|
1
|
||
2
|
||
3
|
||
4
|
||
5
|
||
Item 2.
|
14 | |
Item 3.
|
24 | |
Item 4.
|
24 | |
PART II - OTHER INFORMATION
|
||
Item 1.
|
25 | |
Item 1A.
|
25 | |
Item 2.
|
25 | |
Item 3.
|
25 | |
Item 4.
|
25 | |
Item 5.
|
25 | |
Item 6.
|
26 |
Thirteen weeks ended
|
||||||||
May 4,
2019
|
May 5,
2018
|
|||||||
Net sales
|
$
|
324,854
|
$
|
275,739
|
||||
Cost of sales
|
192,120
|
162,863
|
||||||
Gross profit
|
132,734
|
112,876
|
||||||
Selling, general and administrative expenses
|
83,332
|
72,364
|
||||||
Depreciation and amortization expenses
|
3,409
|
2,763
|
||||||
Pre-opening expenses
|
5,209
|
1,764
|
||||||
Operating income
|
40,784
|
35,985
|
||||||
Interest (income) expense, net
|
(145
|
)
|
538
|
|||||
Loss on extinguishment of debt
|
-
|
100
|
||||||
Income before income taxes
|
40,929
|
35,347
|
||||||
Income tax expense
|
2,212
|
4,893
|
||||||
Net income
|
$
|
38,717
|
$
|
30,454
|
||||
Earnings per common share:
|
||||||||
Basic
|
$
|
0.61
|
$
|
0.49
|
||||
Diluted
|
$
|
0.59
|
$
|
0.46
|
||||
Weighted average common shares outstanding:
|
||||||||
Basic
|
63,188
|
62,169
|
||||||
Diluted
|
66,176
|
65,624
|
Assets
|
May 4,
2019
|
May 5,
2018
|
February 2,
2019
|
|||||||||
Current assets:
|
||||||||||||
Cash and cash equivalents
|
$
|
58,511
|
$
|
27,614
|
$
|
51,941
|
||||||
Inventories
|
329,065
|
276,040
|
296,407
|
|||||||||
Accounts receivable
|
961
|
414
|
570
|
|||||||||
Prepaid expenses and other assets
|
5,723
|
8,132
|
9,579
|
|||||||||
Total current assets
|
394,260
|
312,200
|
358,497
|
|||||||||
Property and equipment, net of accumulated depreciation of $64,446, $53,276 and $60,433, respectively
|
134,498
|
55,647
|
119,052
|
|||||||||
Operating lease right-of-use assets
|
273,099
|
-
|
-
|
|||||||||
Goodwill
|
444,850
|
444,850
|
444,850
|
|||||||||
Trade name and other intangible assets, net of accumulated amortization of $0, $1,909 and $2,160, respectively
|
230,559
|
232,555
|
232,304
|
|||||||||
Other assets
|
2,022
|
2,084
|
4,300
|
|||||||||
Total assets
|
$
|
1,479,288
|
$
|
1,047,336
|
$
|
1,159,003
|
||||||
Liabilities and Stockholders’ Equity
|
||||||||||||
Current liabilities:
|
||||||||||||
Current portion of long-term debt
|
$
|
197
|
$
|
10,143
|
$
|
238
|
||||||
Accounts payable
|
92,738
|
75,420
|
77,431
|
|||||||||
Income taxes payable
|
9,429
|
10,858
|
7,393
|
|||||||||
Current portion of operating lease liabilities
|
50,955
|
-
|
-
|
|||||||||
Accrued expenses and other
|
58,773
|
47,067
|
65,934
|
|||||||||
Total current liabilities
|
212,092
|
143,488
|
150,996
|
|||||||||
Revolving credit facility
|
-
|
-
|
-
|
|||||||||
Long-term debt
|
413
|
13,926
|
441
|
|||||||||
Deferred income taxes
|
55,424
|
57,094
|
55,616
|
|||||||||
Long-term operating lease liabilities
|
222,976
|
-
|
-
|
|||||||||
Other long-term liabilities
|
7
|
7,113
|
9,298
|
|||||||||
Total liabilities
|
490,912
|
221,621
|
216,351
|
|||||||||
Stockholders’ equity:
|
||||||||||||
Preferred stock - 50,000 shares authorized at $0.001 par value; no shares issued
|
-
|
-
|
-
|
|||||||||
Common stock - 500,000 shares authorized at $0.001 par value; 63,492, 62,358 and 63,015 shares issued, respectively
|
63
|
62
|
63
|
|||||||||
Additional paid-in capital
|
607,241
|
587,857
|
600,234
|
|||||||||
Retained earnings
|
381,158
|
237,882
|
342,441
|
|||||||||
Treasury - common stock, at cost; 9 shares
|
(86
|
)
|
(86
|
)
|
(86
|
)
|
||||||
Total stockholders’ equity
|
988,376
|
825,715
|
942,652
|
|||||||||
Total liabilities and stockholders’ equity
|
$
|
1,479,288
|
$
|
1,047,336
|
$
|
1,159,003
|
Common stock
|
Treasury stock
|
Additional
paid-in
|
Retained
|
Total
stockholders’
|
||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
capital
|
earnings
|
equity
|
||||||||||||||||||||||
Balance as of February 3, 2018
|
62,007
|
$
|
62
|
(9
|
)
|
$
|
(86
|
)
|
$
|
583,467
|
$
|
213,019
|
$
|
796,462
|
||||||||||||||
Cumulative effect of adopting ASU 2014-09
|
-
|
-
|
-
|
-
|
-
|
(5,591
|
)
|
(5,591
|
)
|
|||||||||||||||||||
Stock-based compensation expense
|
-
|
-
|
-
|
-
|
1,600
|
-
|
1,600
|
|||||||||||||||||||||
Proceeds from stock options exercised
|
312
|
-
|
-
|
-
|
3,492
|
-
|
3,492
|
|||||||||||||||||||||
Vesting of restricted stock
|
51
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Common shares withheld for taxes
|
(12
|
)
|
-
|
-
|
-
|
(702
|
)
|
-
|
(702
|
)
|
||||||||||||||||||
Net income
|
-
|
-
|
-
|
-
|
-
|
30,454
|
30,454
|
|||||||||||||||||||||
Balance as of May 5, 2018
|
62,358
|
$
|
62
|
(9
|
)
|
$
|
(86
|
)
|
$
|
587,857
|
$
|
237,882
|
$
|
825,715
|
||||||||||||||
Balance as of February 2, 2019
|
63,015
|
$
|
63
|
(9
|
)
|
$
|
(86
|
)
|
$
|
600,234
|
$
|
342,441
|
$
|
942,652
|
||||||||||||||
Stock-based compensation expense
|
-
|
-
|
-
|
-
|
2,193
|
-
|
2,193
|
|||||||||||||||||||||
Proceeds from stock options exercised
|
437
|
-
|
-
|
-
|
6,081
|
-
|
6,081
|
|||||||||||||||||||||
Vesting of restricted stock
|
56
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Common shares withheld for taxes
|
(16
|
)
|
-
|
-
|
-
|
(1,267
|
)
|
-
|
(1,267
|
)
|
||||||||||||||||||
Net income
|
-
|
-
|
-
|
-
|
-
|
38,717
|
38,717
|
|||||||||||||||||||||
Balance as of May 4, 2019
|
63,492
|
$
|
63
|
(9
|
)
|
$
|
(86
|
)
|
$
|
607,241
|
$
|
381,158
|
$
|
988,376
|
Thirteen weeks ended
|
||||||||
May 4,
2019
|
May 5,
2018
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
38,717
|
$
|
30,454
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization of property and equipment
|
4,116
|
3,309
|
||||||
Amortization of debt issuance costs
|
104
|
128
|
||||||
Amortization of original issue discount
|
-
|
2
|
||||||
Loss on extinguishment of debt
|
-
|
100
|
||||||
Gain on sale of assets
|
(10
|
)
|
(6
|
)
|
||||
Amortization of intangibles
|
-
|
84
|
||||||
Deferred income tax provision (benefit)
|
11
|
(57
|
)
|
|||||
Deferred rent expense
|
-
|
128
|
||||||
Stock-based compensation expense
|
2,193
|
1,600
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Inventories
|
(32,658
|
)
|
(20,855
|
)
|
||||
Accounts receivable
|
(391
|
)
|
857
|
|||||
Prepaid expenses and other assets
|
(876
|
)
|
(188
|
)
|
||||
Accounts payable
|
15,424
|
1,500
|
||||||
Income taxes payable
|
2,036
|
4,823
|
||||||
Accrued expenses and other liabilities
|
(6,690
|
)
|
(6,531
|
)
|
||||
Net cash provided by operating activities
|
21,976
|
15,348
|
||||||
Cash flows from investing activities:
|
||||||||
Purchases of property and equipment
|
(20,123
|
)
|
(4,719
|
)
|
||||
Proceeds from sale of property and equipment
|
16
|
11
|
||||||
Net cash used in investing activities
|
(20,107
|
)
|
(4,708
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Borrowings on revolving credit facility
|
336,965
|
287,750
|
||||||
Repayments on revolving credit facility
|
(336,965
|
)
|
(287,750
|
)
|
||||
Repayments on term loan and finance leases
|
(113
|
)
|
(25,050
|
)
|
||||
Proceeds from stock option exercises
|
6,081
|
3,492
|
||||||
Common shares withheld for taxes
|
(1,267
|
)
|
(702
|
)
|
||||
Net cash provided by (used in) financing activities
|
4,701
|
(22,260
|
)
|
|||||
Net increase (decrease) in cash and cash equivalents
|
6,570
|
(11,620
|
)
|
|||||
Cash and cash equivalents at the beginning of the period
|
51,941
|
39,234
|
||||||
Cash and cash equivalents at the end of the period
|
$
|
58,511
|
$
|
27,614
|
||||
Supplemental disclosure of cash flow information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$
|
129
|
$
|
421
|
||||
Income taxes
|
$
|
163
|
$
|
127
|
||||
Non-cash investing activities:
|
||||||||
Accrued purchases of property and equipment
|
$
|
5,136
|
$
|
1,279
|
(a) |
Description of Business
|
(b) |
Fiscal Year
|
(c) |
Basis of Presentation
|
(d) |
Use of Estimates
|
(e) |
Fair Value Disclosures
|
• |
Level 1 inputs are quoted prices available for identical assets and liabilities in active markets.
|
• |
Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active
markets or other inputs which are observable or can be corroborated by observable market data.
|
• |
Level 3 inputs are less observable and reflect the Company’s assumptions.
|
(f) |
Recently Adopted Accounting Pronouncements
|
(2) |
Net Sales
|
Thirteen weeks ended
|
||||||||
May 4,
2019
|
May 5,
2018
|
|||||||
Beginning Balance
|
$
|
9,055
|
$
|
8,321
|
||||
Revenue deferred
|
4,294
|
2,575
|
||||||
Revenue recognized
|
(3,939
|
)
|
(2,364
|
)
|
||||
Ending Balance
|
$
|
9,410
|
$
|
8,532
|
Thirteen weeks ended
|
||||||||
May 4,
2019
|
May 5,
2018
|
|||||||
Beginning Balance
|
$
|
1,448
|
$
|
1,223
|
||||
Gift card issuances
|
1,065
|
908
|
||||||
Gift card redemption and breakage
|
(1,167
|
)
|
(990
|
)
|
||||
Ending Balance
|
$
|
1,346
|
$
|
1,141
|
(3) |
Earnings per Common Share
|
Thirteen weeks ended
|
||||||||
May 4,
2019
|
May 5,
2018
|
|||||||
Net income
|
$
|
38,717
|
$
|
30,454
|
||||
Weighted average number of common shares outstanding – Basic
|
63,188
|
62,169
|
||||||
Incremental shares from the assumed exercise of outstanding stock options and vesting of
restricted stock units
|
2,988
|
3,455
|
||||||
Weighted average number of common shares outstanding - Diluted
|
66,176
|
65,624
|
||||||
Earnings per common share – Basic
|
$
|
0.61
|
$
|
0.49
|
||||
Earnings per common share - Diluted
|
$
|
0.59
|
$
|
0.46
|
(4) |
Commitments and Contingencies
|
2019
|
$
|
46,911
|
||
2020
|
54,289
|
|||
2021
|
52,737
|
|||
2022
|
46,555
|
|||
2023
|
41,559
|
|||
Thereafter
|
72,751
|
|||
Total undiscounted lease payments (1)
|
314,802
|
|||
Less: Imputed interest
|
(40,871
|
)
|
||
Total lease obligations
|
273,931
|
|||
Less: Current obligations under leases
|
(50,955
|
)
|
||
Long-term lease obligations
|
$
|
222,976
|
(1) |
Lease obligations exclude $31.8 million of minimum lease payments for leases signed, but not commenced.
|
Cash paid for operating leases
|
$
|
15,307
|
||
Non-cash right-of-use assets obtained in exchange for lease obligations
|
17,613
|
|||
Weighted-average remaining lease term
|
6 years
|
|||
Weighted-average discount rate
|
4.5
|
%
|
2019
|
$
|
60,804
|
||
2020
|
56,106
|
|||
2021
|
49,226
|
|||
2022
|
42,724
|
|||
2023
|
34,876
|
|||
Thereafter
|
65,218
|
|||
Total minimum lease payments
|
$
|
308,954
|
(5) |
Accrued Expenses and Other
|
May 4,
2019
|
May 5,
2018
|
February 2,
2019
|
||||||||||
Deferred revenue
|
$
|
10,756
|
$
|
8,532
|
$
|
10,503
|
||||||
Compensation and benefits
|
7,266
|
6,910
|
16,438
|
|||||||||
Insurance
|
6,831
|
3,918
|
6,159
|
|||||||||
Freight
|
6,216
|
4,434
|
4,496
|
|||||||||
Sales and use taxes
|
5,820
|
4,721
|
3,464
|
|||||||||
Real estate related
|
3,950
|
3,772
|
3,748
|
|||||||||
Advertising
|
3,821
|
3,339
|
5,678
|
|||||||||
Other
|
14,113
|
11,441
|
15,448
|
|||||||||
$
|
58,773
|
$
|
47,067
|
$
|
65,934
|
(6) |
Debt Obligations and Financing Arrangements
|
May 4,
2019
|
May 5,
2018
|
February 2,
2019
|
||||||||||
Term loan, net
|
$
|
-
|
$
|
23,655
|
$
|
-
|
||||||
Finance leases
|
610
|
414
|
679
|
|||||||||
Total debt
|
610
|
24,069
|
679
|
|||||||||
Less: current portion
|
(197
|
)
|
(10,143
|
)
|
(238
|
)
|
||||||
Long-term debt
|
$
|
413
|
$
|
13,926
|
$
|
441
|
(7) |
Income Taxes
|
(8) |
Equity Incentive Plans
|
Number
of options
|
Weighted
average
exercise
price
|
Weighted
average
remaining
contractual
term (years)
|
||||||||||
Outstanding at February 2, 2019
|
3,746,422
|
$
|
15.29
|
|||||||||
Granted
|
286,849
|
79.96
|
||||||||||
Forfeited
|
(13,504
|
)
|
64.25
|
|||||||||
Exercised
|
(437,204
|
)
|
13.91
|
|||||||||
Outstanding at May 4, 2019
|
3,582,563
|
20.46
|
5.4
|
|||||||||
Exercisable at May 4, 2019
|
2,435,065
|
10.83
|
4.3
|
Thirteen weeks ended
|
||||||||
May 4,
2019
|
May 5,
2018
|
|||||||
Risk-free interest rate
|
2.43
|
%
|
2.70
|
%
|
||||
Expected dividend yield
|
—
|
—
|
||||||
Expected term (years)
|
6.25 years
|
6.25 years
|
||||||
Expected volatility
|
25.88
|
%
|
25.84
|
%
|
Number
of shares
|
Weighted
average
grant date
fair value
|
|||||||
Non-vested balance at February 2, 2019
|
220,200
|
$
|
35.75
|
|||||
Granted
|
58,530
|
80.12
|
||||||
Forfeited
|
(799
|
)
|
75.90
|
|||||
Vested
|
(56,360
|
)
|
33.84
|
|||||
Non-vested balance at May 4, 2019
|
221,571
|
47.81
|
(9) |
Subsequent Events
|
• |
growing our merchant buying team to increase our access to brand name/closeout merchandise;
|
• |
adding members to our senior management team;
|
• |
expanding the capacity of our distribution centers to their current 1.6 million square feet plus an additional 615,000 square feet once the new distribution
center is fully operational; and
|
• |
investing in information technology, accounting, and warehouse management systems.
|
• |
growing our store base;
|
• |
increasing our offerings of great bargains; and
|
• |
leveraging and expanding Ollie’s Army, our customer loyalty program.
|
• |
have been remodeled while remaining open;
|
• |
are closed for five or fewer days in any fiscal month;
|
• |
are closed temporarily and relocated within their respective trade areas; and
|
• |
have expanded, but are not significantly different in size, within their current locations.
|
Thirteen weeks ended
|
||||||||
May 4,
2019
|
May 5,
2018
|
|||||||
( dollars in thousands)
|
||||||||
Condensed consolidated statements of income data:
|
||||||||
Net sales
|
$
|
324,854
|
$
|
275,739
|
||||
Cost of sales
|
192,120
|
162,863
|
||||||
Gross profit
|
132,734
|
112,876
|
||||||
Selling, general and administrative expenses
|
83,332
|
72,364
|
||||||
Depreciation and amortization expenses
|
3,409
|
2,763
|
||||||
Pre-opening expenses
|
5,209
|
1,764
|
||||||
Operating income
|
40,784
|
35,985
|
||||||
Interest (income) expense, net
|
(145
|
)
|
538
|
|||||
Loss on extinguishment of debt
|
-
|
100
|
||||||
Income before income taxes
|
40,929
|
35,347
|
||||||
Income tax expense
|
2,212
|
4,893
|
||||||
Net income
|
$
|
38,717
|
$
|
30,454
|
||||
Percentage of net sales (1):
|
||||||||
Net sales
|
100.0
|
%
|
100.0
|
%
|
||||
Cost of sales
|
59.1
|
59.1
|
||||||
Gross profit
|
40.9
|
40.9
|
||||||
Selling, general and administrative expenses
|
25.7
|
26.2
|
||||||
Depreciation and amortization expenses
|
1.0
|
1.0
|
||||||
Pre-opening expenses
|
1.6
|
0.6
|
||||||
Operating income
|
12.6
|
13.1
|
||||||
Interest (income) expense, net
|
— |
0.2
|
||||||
Loss on extinguishment of debt
|
—
|
—
|
||||||
Income before income taxes
|
12.6
|
12.8
|
||||||
Income tax expense
|
0.7
|
1.8
|
||||||
Net income
|
11.9
|
%
|
11.0
|
%
|
||||
Select operating data:
|
||||||||
New store openings
|
21
|
8
|
||||||
Number of stores open at end of period
|
324
|
276
|
||||||
Average net sales per store (2)
|
$
|
1,032
|
$
|
1,011
|
||||
Comparable stores sales change
|
0.8
|
%
|
1.9
|
%
|
(1) |
Components may not add to totals due to rounding.
|
(2) |
Average net sales per store represents the weighted average of total net sales divided
by the number of stores open, in each case at the end of each week in each fiscal period.
|
Thirteen weeks ended
|
||||||||
May 4,
2019
|
May 5,
2018
|
|||||||
( dollars in thousands)
|
||||||||
Net income
|
$
|
38,717
|
$
|
30,454
|
||||
Interest (income) expense, net
|
(145
|
)
|
538
|
|||||
Loss on extinguishment of debt
|
-
|
100
|
||||||
Depreciation and amortization expenses (1)
|
4,199
|
3,393
|
||||||
Income tax expense
|
2,212
|
4,893
|
||||||
EBITDA
|
44,983
|
39,378
|
||||||
Gain from insurance settlement
|
(565
|
)
|
-
|
|||||
Non-cash stock-based compensation expense
|
2,193
|
1,600
|
||||||
Non-cash purchase accounting items (2)
|
-
|
(1
|
)
|
|||||
Adjusted EBITDA
|
$
|
46,611
|
$
|
40,977
|
(1) |
Includes depreciation and amortization relating to our distribution centers, which is included within cost of sales on our condensed consolidated statements of
income and amortization of acquisition-related favorable lease adjustments which is included within SG&A on our condensed consolidated statements of income.
|
(2) |
Includes purchase accounting impact from unfavorable lease liabilities related to a prior acquisition.
|
Thirteen weeks ended
|
||||||||
May 4,
2019
|
May 5,
2018
|
|||||||
(in thousands)
|
||||||||
Net cash provided by operating activities
|
$
|
21,976
|
$
|
15,348
|
||||
Net cash used in investing activities
|
(20,107
|
)
|
(4,708
|
)
|
||||
Net cash provided by (used in) financing activities
|
4,701
|
(22,260
|
)
|
|||||
Net increase (decrease) in cash and cash equivalents
|
$
|
6,570
|
$
|
(11,620
|
)
|
Exhibit No.
|
Description of Exhibits
|
|
Amended and Restated Credit Agreement, dated May 22, 2019, among Bargain Parent, Inc., OBO Ventures, Inc. and certain subsidiaries, as
borrowers, Manufacturers and Traders Trust Company, as Administrative Agent, and certain lenders party thereto (incorporated by reference to Exhibit 10.1 to the Current Report filed on Form 8-K by the Company on May 24, 2019 (No.
001-37501)).
|
||
Amended and Restated Guarantee and Collateral Agreement, dated May 22, 2019, Bargain Parent, Inc., Ollie’s Holdings, Inc., OBO Ventures,
Inc. and certain subsidiaries, in favor of Manufacturers and Trading Trust Company, as Administrative Agent (incorporated by reference to Exhibit 10.2 to the Current Report filed on Form 8-K by the Company on May 24, 2019 (No.
001-37501)).
|
||
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as amended, as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as amended, as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.
|
||
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.
|
||
**101.INS
|
XBRL Instance Document.
|
|
**101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
|
**101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
**101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
**101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
**101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
OLLIE’S BARGAIN OUTLET HOLDINGS, INC.
|
|||
Date: June 10, 2019
|
/s/ Jay Stasz
|
Jay Stasz
|
|
Senior Vice President and
|
|
Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|
1. |
I have reviewed this quarterly report on Form 10-Q of Ollie’s Bargain Outlet Holdings, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange
Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that
material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal
quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the
registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to
adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over
financial reporting.
|
Date: June 10, 2019
|
/s/ Mark Butler
|
Mark Butler
|
|
President, Chief Executive Officer and Chairman of the Board
|
|
(Principal Executive Officer)
|
1. |
I have reviewed this quarterly report on Form 10-Q of Ollie’s Bargain Outlet Holdings, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange
Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that
material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal
quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the
registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to
adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over
financial reporting.
|
Date: June 10, 2019
|
/s/ Jay Stasz
|
Jay Stasz
|
|
Senior Vice President and Chief Financial Officer
|
|
(Principal Financial Officer)
|
(1) |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: June 10, 2019
|
||
/s/ Mark Butler
|
||
Mark Butler
|
||
Chief Executive Officer
|
(1) |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: June 10, 2019
|
||
/s/ Jay Stasz
|
||
Jay Stasz
|
||
Chief Financial Officer
|
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
May 04, 2019 |
Jun. 05, 2019 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Ollie's Bargain Outlet Holdings, Inc. | |
Entity Central Index Key | 0001639300 | |
Current Fiscal Year End Date | --02-01 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 63,483,898 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 04, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
May 04, 2019 |
May 05, 2018 |
|
Condensed Consolidated Statements of Income (Unaudited) [Abstract] | ||
Net sales | $ 324,854 | $ 275,739 |
Cost of sales | 192,120 | 162,863 |
Gross profit | 132,734 | 112,876 |
Selling, general and administrative expenses | 83,332 | 72,364 |
Depreciation and amortization expenses | 3,409 | 2,763 |
Pre-opening expenses | 5,209 | 1,764 |
Operating income | 40,784 | 35,985 |
Interest (income) expense, net | (145) | 538 |
Loss on extinguishment of debt | 0 | 100 |
Income before income taxes | 40,929 | 35,347 |
Income tax expense | 2,212 | 4,893 |
Net income | $ 38,717 | $ 30,454 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.61 | $ 0.49 |
Diluted (in dollars per share) | $ 0.59 | $ 0.46 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 63,188 | 62,169 |
Diluted (in shares) | 66,176 | 65,624 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands |
May 04, 2019 |
Feb. 02, 2019 |
May 05, 2018 |
---|---|---|---|
Assets | |||
Property and equipment, accumulated depreciation | $ 64,446 | $ 60,433 | $ 53,276 |
Trade name and other intangible assets, accumulated amortization | $ 0 | $ 2,160 | $ 1,909 |
Stockholders' equity: | |||
Preferred stock, shares authorized (in shares) | 50,000 | 50,000 | 50,000 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred stock, shares issued (in shares) | 0 | 0 | 0 |
Common stock, shares authorized (in shares) | 500,000 | 500,000 | 500,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares issued (in shares) | 63,492 | 63,015 | 62,358 |
Treasury - common stock (in shares) | 9 | 9 | 9 |
Organization and Summary of Significant Accounting Policies |
3 Months Ended | |||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 04, 2019 | ||||||||||||||||||||||||||||||
Organization and Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||
Organization and Summary of Significant Accounting Policies |
Ollie’s Bargain Outlet Holdings, Inc. and subsidiaries (collectively referenced to as the “Company” or “Ollie’s”) principally buys overproduced, overstocked, and closeout merchandise from manufacturers, wholesalers and other retailers. In addition, the Company augments its name-brand closeout deals with directly sourced private label products featuring names exclusive to Ollie’s in order to provide consistently value-priced goods in select key merchandise categories. Since its first store opened in 1982, the Company has grown to 324 retail locations in 23 states as of May 4, 2019. Ollie’s Bargain Outlet retail locations are located in Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Indiana, Kentucky, Louisiana, Maryland, Michigan, Mississippi, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia and West Virginia.
Ollie’s follows a 52/53-week fiscal year, which ends on the Saturday nearer to January 31 of the following calendar year. References to the thirteen weeks ended May 4, 2019 and May 5, 2018 refer to the thirteen weeks from February 3, 2019 to May 4, 2019 and from February 4, 2018 to May 5, 2018, respectively. References to “2018” refer to the fiscal year ended February 2, 2019, which consisted of a 52-week period. References to “2019” refer to the fiscal year ending February 1, 2020, which consists of a 52-week period.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly the Company’s results of operations, financial condition, and cash flows for all periods presented. The condensed consolidated balance sheets as of May 4, 2019 and May 5, 2018, and the condensed consolidated statements of income, stockholders’ equity and cash flows for the thirteen weeks ended May 4, 2019 and May 5, 2018 have been prepared by the Company and are unaudited. The Company’s business is seasonal in nature and results of operations for the interim periods presented are not necessarily indicative of operating results for 2019 or any other period. All intercompany accounts, transactions, and balances have been eliminated in consolidation. The Company’s balance sheet as of February 2, 2019, presented herein, has been derived from the audited balance sheet included in the Company’s Annual Report on Form 10-K filed with the SEC on March 29, 2019 (“Annual Report”), but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the financial statements for 2018 and footnotes thereto included in the Annual Report. For purposes of the disclosure requirements for segments of a business enterprise, it has been determined that the Company is comprised of one operating segment.
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Fair value is defined as the price which the Company would receive to sell an asset or pay to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. In determining fair value, GAAP establishes a three‑level hierarchy used in measuring fair value, as follows:
The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and its credit facilities. The carrying amount of cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of their short maturities. The carrying amount of the Company’s credit facilities approximates its fair value because the interest rates are adjusted regularly based on current market conditions.
Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases. ASU 2016-02 requires that lease arrangements longer than 12 months result in an entity recognizing a right-of-use asset and lease liability. The updated guidance is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company adopted ASU 2016-02 as of February 3, 2019 using the modified retrospective transition method, including the option to not restate comparative periods. As a part of the adoption process, the Company has elected the practical expedients that do not require it to reassess existing contracts to determine if they contain leases under the new definition of a lease, or to reassess historical lease classification or initial direct costs. The Company also adopted the practical expedient to not separate lease and non-lease components for new leases after adoption of the new standard. In addition, the Company applied a policy election to exclude leases with an initial term of 12 months or less from balance sheet recognition. The Company did not adopt the hindsight practical expedient and, therefore, will continue to utilize lease terms determined under previous lease guidance. Adoption of the standard had a material impact on the condensed consolidated balance sheet and related disclosures and resulted in recognition of right-of-use assets of $268.2 million and lease liabilities for operating leases of $269.1 million as of February 3, 2019, while eliminating pre-existing balances for other assets of $6.9 million, deferred rent and tenant improvement allowances of $9.5 million and intangible assets related to favorable leases of $1.7 million which were reclassified to the operating lease right-of-use asset. The standard did not have a material impact on the Company’s condensed consolidated statements of income, stockholders’ equity or cash flows. Refer to Note 4 for further details. |
Net Sales |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 04, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales |
Ollie’s recognizes retail sales in its stores when merchandise is sold and the customer takes possession of merchandise. Also included in net sales is revenue allocated to certain redeemed discounts earned via the Ollie’s Army loyalty program and gift card breakage. Net sales are presented net of returns and sales tax. The Company provides an allowance for estimated retail merchandise returns based on prior experience. Revenue Recognition Revenue is deferred for the Ollie’s Army loyalty program where members accumulate points that can be redeemed for discounts on future purchases. The Company has determined it has an additional performance obligation to Ollie’s Army members at the time of the initial transaction. The Company allocates the transaction price to the initial transaction and the discount awards based upon its relative standalone selling price, which considers historical redemption patterns for the award. Revenue is recognized as those discount awards are redeemed. Discount awards which are issued upon the achievement of specified point levels are valid for a maximum of 90 days from the date of issuance. At the end of each fiscal period, unredeemed discount awards and accumulated points to earn a future discount award are reflected as a liability. Discount awards are combined in one homogeneous pool and are not separately identifiable. Therefore, the revenue recognized consists of discount awards redeemed that were included in the deferred revenue balance at the beginning of the period as well as discount awards issued during the current period. The following table is a reconciliation of the liability related to this program (in thousands):
Gift card breakage for gift card liabilities not subject to escheatment is recognized as revenue in proportion to the redemption of gift cards. The rate applied to redemptions is based upon a historical breakage rate. Gift cards are combined in one homogenous pool and are not separately identifiable. Therefore, the revenue recognized consists of gift cards that were included in the liability at the beginning of the period as well as gift cards that were issued during the period. The following table is a reconciliation of the gift card liability (in thousands):
|
Earnings per Common Share |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 04, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Common Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Common Share |
Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding after giving effect to the potential dilution, if applicable, from the assumed exercise of stock options into shares of common stock as if those stock options were exercised and the assumed lapse of restrictions on restricted stock units. The following table summarizes those effects for the diluted earnings per common share calculation (in thousands, except per share amounts):
The effect of the weighted average assumed exercise of stock options outstanding totaling 145,684 and 124,738 for the thirteen weeks ended May 4, 2019 and May 5, 2018, respectively, were excluded from the calculation of diluted weighted average common shares outstanding because the effect would have been antidilutive. The effect of weighted average non-vested restricted stock units outstanding totaling 29,127 and 26,333 for the thirteen weeks ended May 4, 2019 and May 5, 2018, respectively, were excluded from the calculation of diluted weighted average common shares outstanding because the effect would have been antidilutive. |
Commitments and Contingencies |
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Commitments and Contingencies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies |
Commitments On February 3, 2019, the first day of Ollie’s fiscal year 2019, the Company adopted ASU 2016-02, Leases, which requires that lessees recognize right-of-use assets and lease liabilities for all leases on the balance sheet. Ollie’s generally leases its stores, offices and distribution facilities under operating leases that expire at various dates through 2033. These leases generally provide for fixed annual rentals; however, several provide for minimum annual rentals plus contingent rentals based on a percentage of annual sales. A majority of the Company’s leases also require a payment for all or a portion of insurance, real estate taxes, water and sewer costs and repairs, the cost of which is charged to the related expense category rather than being accounted for as rent expense. Most of the leases contain options to renew for three to five successive five-year periods. The Company is generally not reasonably certain to exercise renewal options, therefore the options are not considered in determining the lease term, and associated potential option payments are excluded from the lease payments. Ollie’s lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. Lease cost for operating leases for the thirteen weeks ended May 4, 2019 and May 5, 2018 was $15.2 million and $12.0 million, respectively, which was classified in selling, general and administrative expenses on the condensed consolidated statements of income. The following table summarizes the maturity of the Company’s operating lease liabilities as of May 4, 2019 (in thousands):
The following table summarizes other information related to the Company’s operating leases as of May 4, 2019:
The Company adopted the new lease standard in the first quarter of 2019 as discussed in Note 1, and as required, the following disclosure is provided for periods prior to adoption. As of February 2, 2019, the following is a schedule by year of future minimum rental payments required under non-cancelable operating leases, including renewal periods that were reasonably assured and that had initial or remaining lease terms in excess of one year, excluding any payments related to insurance, taxes, or maintenance (in thousands):
Related Party Leases The Company has entered into five non-cancelable operating leases with related parties for office and store locations. Ollie’s made $0.3 million and $0.4 million in rent payments to such related parties during each of the thirteen weeks ended May 4, 2019 and May 5, 2018, respectively. Contingencies From time to time the Company may be involved in claims and legal actions that arise in the ordinary course of its business. The Company cannot predict the outcome of any litigation or suit to which it is a party. However, the Company does not believe that an unfavorable decision of any of the current claims or legal actions against it, individually or in the aggregate, will have a material adverse effect on its financial position, results of operations, liquidity or capital resources. |
Accrued Expenses and Other |
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Accrued Expenses and Other |
Accrued expenses and other consists of the following (in thousands):
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Debt Obligations and Financing Arrangements |
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Debt Obligations and Financing Arrangements |
Long-term debt consists of the following (in thousands):
The Company’s credit facilities (“Credit Facilities”) consist of a $200.0 million term loan (“Term Loan Facility”), which was fully paid as of February 2, 2019, and a $100.0 million revolving credit facility (“Revolving Credit Facility”), which includes a $25.0 million sub-facility for letters of credit and a $25.0 million sub-facility for swingline loans. Loans under the Credit Facilities mature on January 29, 2021. The interest rates for the Credit Facilities are not subject to a floor and are calculated as the higher of the Prime Rate, the Federal Funds Effective Rate plus 0.50% or the Eurodollar Rate plus 1.0%, plus the Applicable Margin, or, for Eurodollar Loans, the Eurodollar Rate plus the Applicable Margin. The Applicable Margin will vary from 0.75% to 1.25% for a Base Rate Loan and 1.75% to 2.25% for a Eurodollar Loan, based on reference to the total leverage ratio (total debt to adjusting EBITDA, as defined in the agreement). The Company made voluntary prepayments under the Term Loan Facility totaling $48.8 million during 2018, paying the balance in full. Under the terms of the Revolving Credit Facility, as of May 4, 2019, the Company could borrow up to 90.0% of the most recent appraised value (valued at cost, discounted for the current net orderly liquidation value) of its eligible inventory, as defined, up to $100.0 million. As of May 4, 2019, the Company had no outstanding borrowings under the Revolving Credit Facility, with $98.1 million of borrowing availability, letter of credit commitments of $1.6 million and $0.3 million of rent reserves. The Revolving Credit Facility also contains a variable unused line fee ranging from 0.250% to 0.375% per annum. The Credit Facilities are collateralized by the Company’s assets and equity and contain financial covenants, as well as certain business covenants, including restrictions on dividend payments, which the Company must comply with during the term of the agreements. The financial covenants include a consolidated fixed charge coverage ratio test of at least 1.1 to 1.0 and a total leverage test of no greater than 3.5 to 1.0. The Company was in compliance with all terms of the Credit Facilities during the thirteen weeks ended May 4, 2019. The provisions of the Credit Facilities restrict all of the net assets of the Company’s consolidated subsidiaries, which constitutes all of the net assets on the Company’s consolidated balance sheet as of May 4, 2019, from being used to pay any dividends or make other restricted payments to the Company without prior written consent from the financial institutions that are a party to the Credit Facilities, subject to certain exceptions. |
Income Taxes |
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Income Taxes [Abstract] | |||
Income Taxes |
The provision for income taxes is based on the current estimate of the annual effective tax rate and is adjusted as necessary for discrete events occurring in a particular period. The effective tax rates for the thirteen weeks ended May 4, 2019 and May 5, 2018 were 5.4% and 13.8%, respectively. The reduced effective tax rate in the thirteen weeks ended May 4, 2019 was primarily the result of an increase in excess tax benefits related to stock-based compensation. These discrete tax benefits totaled $8.1 million and $3.9 million for the thirteen weeks ended May 4, 2019 and May 5, 2018, respectively. |
Equity Incentive Plans |
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Equity Incentive Plans |
During 2012, Ollie’s established an equity incentive plan (the “2012 Plan”), under which stock options were granted to executive officers and key employees as deemed appropriate under the provisions of the 2012 Plan, with an exercise price at the fair value of the underlying stock on the date of grant. The vesting period for options granted under the 2012 Plan is five years (20% ratably per year). Options granted under the 2012 Plan are subject to employment for vesting, expire 10 years from the date of grant and are not transferable other than upon death. As of July 15, 2015, the date of the pricing of the Company’s initial public offering, no additional equity grants will be made under the 2012 Plan. In connection with its initial public offering, the Company adopted the 2015 equity incentive plan (the “2015 Plan”) pursuant to which the Company’s Board of Directors may grant stock options, restricted shares or other awards to employees, directors and consultants. The 2015 Plan allows for the issuance of up to 5,250,000 shares. Awards will be made pursuant to agreements and may be subject to vesting and other restrictions as determined by the Board of Directors or the Compensation Committee of the Board. The Company uses authorized and unissued shares to satisfy share award exercises. As of May 4, 2019, there were 3,133,750 shares available for grant under the 2015 Plan. Stock Options The exercise price for stock options is determined at the fair value of the underlying stock on the date of grant. The vesting period for awards granted under the 2015 Plan is generally set at four years (25% ratably per year). Awards are subject to employment for vesting, expire 10 years from the date of grant, and are not transferable other than upon death. A summary of the Company’s stock option activity and related information follows for the thirteen weeks ended May 4, 2019 (in thousands, except share and per share amounts):
The Company uses the Black-Scholes option pricing model to value its stock option awards. The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards. The expected life of stock options was estimated using the “simplified method,” as the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior for its stock option grants. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. For stock price volatility, the Company uses its historical information since its initial public offering as well as comparable public companies’ information as a basis for its expected volatility to calculate the fair value of option grants. The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the option. The weighted average grant date fair value per option for options granted during the thirteen weeks ended May 4, 2019 and May 5, 2018 was $24.95 and $18.73, respectively. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model that used the weighted average assumptions in the following table:
Restricted Stock Units Restricted stock units (“RSUs”) are issued at a value not less than the fair market value of the common stock on the date of the grant. RSUs granted to date vest ratably over three or four years or cliff vest in one or four years. Awards are subject to employment for vesting and are not transferable other than upon death. A summary of the Company’s RSU activity and related information for the thirteen weeks ended May 4, 2019 is as follows:
Stock-Based Compensation Expense The compensation cost for stock options and RSUs which have been recorded within selling, general and administrative expenses related to the Company’s equity incentive plans was $2.2 million and $1.6 million for the thirteen weeks ended May 4, 2019 and May 5, 2018, respectively. As of May 4, 2019, there was $22.4 million of total unrecognized compensation cost related to non-vested stock-based compensation arrangements. That cost is expected to be recognized over a weighted average period of 3.0 years. Compensation costs related to awards are recognized using the straight-line method. |
Subsequent Events |
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Subsequent Events [Abstract] | |||
Subsequent Events |
On May 22, 2019, the Company entered into an amended and restated credit agreement (the “Credit Agreement”). The Credit Agreement provides for a five-year $100.0 million revolving credit facility, which includes a $45.0 million sub-facility for letters of credit and a $25.0 million sub-facility for swingline loans (the “New Revolving Credit Facility”). The loans under the New Revolving Credit Facility mature on May 22, 2024. In addition, the Company may, at any time and from time to time add term loan facilities or additional revolving commitments up to $150.0 million together with certain additional amounts pursuant to terms and conditions set out in the Credit Agreement. On May 31, 2019, OBO Ventures, Inc. (“OBO”), a wholly owned subsidiary of the Company, entered into a sale-leaseback transaction with an unaffiliated third-party involving 12 former Toys “R” Us store locations which were acquired by OBO on August 29, 2018. OBO received approximately $42 million in cash for the 12 locations. |
Organization and Summary of Significant Accounting Policies (Policies) |
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Organization and Summary of Significant Accounting Policies [Abstract] | |||||||||||||
Fiscal Year |
Ollie’s follows a 52/53-week fiscal year, which ends on the Saturday nearer to January 31 of the following calendar year. References to the thirteen weeks ended May 4, 2019 and May 5, 2018 refer to the thirteen weeks from February 3, 2019 to May 4, 2019 and from February 4, 2018 to May 5, 2018, respectively. References to “2018” refer to the fiscal year ended February 2, 2019, which consisted of a 52-week period. References to “2019” refer to the fiscal year ending February 1, 2020, which consists of a 52-week period. |
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Basis of Presentation |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly the Company’s results of operations, financial condition, and cash flows for all periods presented. The condensed consolidated balance sheets as of May 4, 2019 and May 5, 2018, and the condensed consolidated statements of income, stockholders’ equity and cash flows for the thirteen weeks ended May 4, 2019 and May 5, 2018 have been prepared by the Company and are unaudited. The Company’s business is seasonal in nature and results of operations for the interim periods presented are not necessarily indicative of operating results for 2019 or any other period. All intercompany accounts, transactions, and balances have been eliminated in consolidation. The Company’s balance sheet as of February 2, 2019, presented herein, has been derived from the audited balance sheet included in the Company’s Annual Report on Form 10-K filed with the SEC on March 29, 2019 (“Annual Report”), but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the financial statements for 2018 and footnotes thereto included in the Annual Report. |
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Segment Reporting | For purposes of the disclosure requirements for segments of a business enterprise, it has been determined that the Company is comprised of one operating segment. |
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Use of Estimates |
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
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Fair Value Disclosures |
Fair value is defined as the price which the Company would receive to sell an asset or pay to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. In determining fair value, GAAP establishes a three‑level hierarchy used in measuring fair value, as follows:
The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and its credit facilities. The carrying amount of cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of their short maturities. The carrying amount of the Company’s credit facilities approximates its fair value because the interest rates are adjusted regularly based on current market conditions. |
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Recently Adopted Accounting Pronouncements |
Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases. ASU 2016-02 requires that lease arrangements longer than 12 months result in an entity recognizing a right-of-use asset and lease liability. The updated guidance is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company adopted ASU 2016-02 as of February 3, 2019 using the modified retrospective transition method, including the option to not restate comparative periods. As a part of the adoption process, the Company has elected the practical expedients that do not require it to reassess existing contracts to determine if they contain leases under the new definition of a lease, or to reassess historical lease classification or initial direct costs. The Company also adopted the practical expedient to not separate lease and non-lease components for new leases after adoption of the new standard. In addition, the Company applied a policy election to exclude leases with an initial term of 12 months or less from balance sheet recognition. The Company did not adopt the hindsight practical expedient and, therefore, will continue to utilize lease terms determined under previous lease guidance. Adoption of the standard had a material impact on the condensed consolidated balance sheet and related disclosures and resulted in recognition of right-of-use assets of $268.2 million and lease liabilities for operating leases of $269.1 million as of February 3, 2019, while eliminating pre-existing balances for other assets of $6.9 million, deferred rent and tenant improvement allowances of $9.5 million and intangible assets related to favorable leases of $1.7 million which were reclassified to the operating lease right-of-use asset. The standard did not have a material impact on the Company’s condensed consolidated statements of income, stockholders’ equity or cash flows. Refer to Note 4 for further details. |
Net Sales (Policies) |
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Net Sales [Abstract] | |
Net Sales | Ollie’s recognizes retail sales in its stores when merchandise is sold and the customer takes possession of merchandise. Also included in net sales is revenue allocated to certain redeemed discounts earned via the Ollie’s Army loyalty program and gift card breakage. Net sales are presented net of returns and sales tax. The Company provides an allowance for estimated retail merchandise returns based on prior experience. |
Net Sales (Tables) |
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Reconciliation of Liabilities for Ollie's Army Loyalty Program and Gift Cards | Revenue is deferred for the Ollie’s Army loyalty program where members accumulate points that can be redeemed for discounts on future purchases. The Company has determined it has an additional performance obligation to Ollie’s Army members at the time of the initial transaction. The Company allocates the transaction price to the initial transaction and the discount awards based upon its relative standalone selling price, which considers historical redemption patterns for the award. Revenue is recognized as those discount awards are redeemed. Discount awards which are issued upon the achievement of specified point levels are valid for a maximum of 90 days from the date of issuance. At the end of each fiscal period, unredeemed discount awards and accumulated points to earn a future discount award are reflected as a liability. Discount awards are combined in one homogeneous pool and are not separately identifiable. Therefore, the revenue recognized consists of discount awards redeemed that were included in the deferred revenue balance at the beginning of the period as well as discount awards issued during the current period. The following table is a reconciliation of the liability related to this program (in thousands):
Gift card breakage for gift card liabilities not subject to escheatment is recognized as revenue in proportion to the redemption of gift cards. The rate applied to redemptions is based upon a historical breakage rate. Gift cards are combined in one homogenous pool and are not separately identifiable. Therefore, the revenue recognized consists of gift cards that were included in the liability at the beginning of the period as well as gift cards that were issued during the period. The following table is a reconciliation of the gift card liability (in thousands):
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Earnings per Common Share (Tables) |
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Earnings per Common Share | The following table summarizes those effects for the diluted earnings per common share calculation (in thousands, except per share amounts):
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Commitments and Contingencies (Tables) |
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Maturity of Operating Lease Liabilities | The following table summarizes the maturity of the Company’s operating lease liabilities as of May 4, 2019 (in thousands):
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Other Information Related to Operating Leases | The following table summarizes other information related to the Company’s operating leases as of May 4, 2019:
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Future Minimum Rental Payments Required under Non-cancelable Operating Leases | The Company adopted the new lease standard in the first quarter of 2019 as discussed in Note 1, and as required, the following disclosure is provided for periods prior to adoption. As of February 2, 2019, the following is a schedule by year of future minimum rental payments required under non-cancelable operating leases, including renewal periods that were reasonably assured and that had initial or remaining lease terms in excess of one year, excluding any payments related to insurance, taxes, or maintenance (in thousands):
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Accrued Expenses and Other (Tables) |
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Accrued Expenses and Other | Accrued expenses and other consists of the following (in thousands):
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Debt Obligations and Financing Arrangements (Tables) |
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Long-term Debt | Long-term debt consists of the following (in thousands):
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Equity Incentive Plans (Tables) |
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Stock Option Activity | A summary of the Company’s stock option activity and related information follows for the thirteen weeks ended May 4, 2019 (in thousands, except share and per share amounts):
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Weighted Average Assumptions | The weighted average grant date fair value per option for options granted during the thirteen weeks ended May 4, 2019 and May 5, 2018 was $24.95 and $18.73, respectively. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model that used the weighted average assumptions in the following table:
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RSU Activity | A summary of the Company’s RSU activity and related information for the thirteen weeks ended May 4, 2019 is as follows:
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Organization and Summary of Significant Accounting Policies (Details) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
May 04, 2019
USD ($)
Location
State
Segment
|
Feb. 02, 2019
USD ($)
|
May 05, 2018
USD ($)
|
|
Organization and Summary of Significant Accounting Policies [Abstract] | |||
Number of retail locations | Location | 324 | ||
Number of states in which retail locations are located | State | 23 | ||
Number of operating segments | Segment | 1 | ||
Recently Adopted Accounting Pronouncements [Abstract] | |||
Right-of-use assets | $ 273,099 | $ 0 | $ 0 |
Lease liabilities | $ 273,931 | ||
Other assets | 6,900 | ||
Deferred rent and tenant improvement allowances | 9,500 | ||
Favorable Leases [Member] | |||
Recently Adopted Accounting Pronouncements [Abstract] | |||
Intangible assets | 1,700 | ||
ASU 2016-02 [Member] | |||
Recently Adopted Accounting Pronouncements [Abstract] | |||
Right-of-use assets | 268,200 | ||
Lease liabilities | $ 269,100 |
Net Sales (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
May 04, 2019 |
May 05, 2018 |
|
Ollie's Army Loyalty Program Liability [Abstract] | ||
Expiration period of discount awards from date of issuance | 90 days | |
Balance at beginning of period | $ 9,055 | $ 8,321 |
Revenue deferred | 4,294 | 2,575 |
Revenue recognized | (3,939) | (2,364) |
Balance at end of period | 9,410 | 8,532 |
Gift Card Liability [Abstract] | ||
Balance at beginning of period | 1,448 | 1,223 |
Gift card issuances | 1,065 | 908 |
Gift card redemption and breakage | (1,167) | (990) |
Balance at end of period | $ 1,346 | $ 1,141 |
Accrued Expenses and Other (Details) - USD ($) $ in Thousands |
May 04, 2019 |
Feb. 02, 2019 |
May 05, 2018 |
---|---|---|---|
Accrued Expenses and Other [Abstract] | |||
Deferred revenue | $ 10,756 | $ 10,503 | $ 8,532 |
Compensation and benefits | 7,266 | 16,438 | 6,910 |
Insurance | 6,831 | 6,159 | 3,918 |
Freight | 6,216 | 4,496 | 4,434 |
Sales and use taxes | 5,820 | 3,464 | 4,721 |
Real estate related | 3,950 | 3,748 | 3,772 |
Advertising | 3,821 | 5,678 | 3,339 |
Other | 14,113 | 15,448 | 11,441 |
Total accrued expenses and other | $ 58,773 | $ 65,934 | $ 47,067 |
Debt Obligations and Financing Arrangements, Long-term Debt (Details) - USD ($) $ in Thousands |
May 04, 2019 |
Feb. 02, 2019 |
May 05, 2018 |
---|---|---|---|
Debt Obligations and Financing Arrangements [Abstract] | |||
Term loan, net | $ 0 | $ 0 | $ 23,655 |
Finance leases | 610 | 679 | 414 |
Total debt | 610 | 679 | 24,069 |
Less: current portion | (197) | (238) | (10,143) |
Long-term debt | $ 413 | $ 441 | $ 13,926 |
Debt Obligations and Financing Arrangements, Credit Facilities (Details) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
May 04, 2019
USD ($)
|
Feb. 02, 2019
USD ($)
|
|
Credit Facilities [Member] | ||
Debt Obligations and Financing Arrangements [Abstract] | ||
Maturity date | Jan. 29, 2021 | |
Credit Facilities [Member] | Minimum [Member] | ||
Debt Obligations and Financing Arrangements [Abstract] | ||
Consolidated fixed charge coverage ratio | 1.1 | |
Credit Facilities [Member] | Maximum [Member] | ||
Debt Obligations and Financing Arrangements [Abstract] | ||
Total leverage ratio | 3.5 | |
Credit Facilities [Member] | Federal Funds Effective Rate [Member] | ||
Debt Obligations and Financing Arrangements [Abstract] | ||
Basis spread | 0.50% | |
Credit Facilities [Member] | Eurodollar Rate [Member] | ||
Debt Obligations and Financing Arrangements [Abstract] | ||
Basis spread | 1.00% | |
Credit Facilities [Member] | Eurodollar Rate [Member] | Minimum [Member] | ||
Debt Obligations and Financing Arrangements [Abstract] | ||
Basis spread | 1.75% | |
Credit Facilities [Member] | Eurodollar Rate [Member] | Maximum [Member] | ||
Debt Obligations and Financing Arrangements [Abstract] | ||
Basis spread | 2.25% | |
Credit Facilities [Member] | Base Rate [Member] | Minimum [Member] | ||
Debt Obligations and Financing Arrangements [Abstract] | ||
Basis spread | 0.75% | |
Credit Facilities [Member] | Base Rate [Member] | Maximum [Member] | ||
Debt Obligations and Financing Arrangements [Abstract] | ||
Basis spread | 1.25% | |
Term Loan Facility [Member] | ||
Debt Obligations and Financing Arrangements [Abstract] | ||
Face amount | $ 200.0 | |
Repayment of debt | $ 48.8 | |
Revolving Credit Facility [Member] | ||
Debt Obligations and Financing Arrangements [Abstract] | ||
Maximum borrowing capacity | 100.0 | |
Outstanding borrowings | 0.0 | |
Borrowing availability | 98.1 | |
Letter of credit commitments | 1.6 | |
Rent reserves | $ 0.3 | |
Revolving Credit Facility [Member] | Minimum [Member] | ||
Debt Obligations and Financing Arrangements [Abstract] | ||
Variable unused line fee percentage | 0.25% | |
Revolving Credit Facility [Member] | Maximum [Member] | ||
Debt Obligations and Financing Arrangements [Abstract] | ||
Percentage of most recent appraised value of eligible inventory | 90.00% | |
Variable unused line fee percentage | 0.375% | |
Letters of Credit [Member] | ||
Debt Obligations and Financing Arrangements [Abstract] | ||
Maximum borrowing capacity | $ 25.0 | |
Swingline Loans [Member] | ||
Debt Obligations and Financing Arrangements [Abstract] | ||
Maximum borrowing capacity | $ 25.0 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
May 04, 2019 |
May 05, 2018 |
|
Income Taxes [Abstract] | ||
Effective income tax rate | 5.40% | 13.80% |
Excess tax benefits related to stock-based compensation | $ (8.1) | $ (3.9) |
Equity Incentive Plans, Equity Incentive Plans (Details) |
3 Months Ended |
---|---|
May 04, 2019
shares
| |
2012 Plan [Member] | Stock Options [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting period | 5 years |
Expiration period | 10 years |
2012 Plan [Member] | Stock Options [Member] | Year 1 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 20.00% |
2012 Plan [Member] | Stock Options [Member] | Year 2 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 20.00% |
2012 Plan [Member] | Stock Options [Member] | Year 3 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 20.00% |
2012 Plan [Member] | Stock Options [Member] | Year 4 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 20.00% |
2012 Plan [Member] | Stock Options [Member] | Year 5 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 20.00% |
2015 Plan [Member] | |
Equity Incentive Plans [Abstract] | |
Number of shares authorized for issuance (in shares) | 5,250,000 |
Number of shares available for grant (in shares) | 3,133,750 |
2015 Plan [Member] | Stock Options [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting period | 4 years |
Expiration period | 10 years |
2015 Plan [Member] | Stock Options [Member] | Year 1 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 25.00% |
2015 Plan [Member] | Stock Options [Member] | Year 2 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 25.00% |
2015 Plan [Member] | Stock Options [Member] | Year 3 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 25.00% |
2015 Plan [Member] | Stock Options [Member] | Year 4 [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting percentage | 25.00% |
Equity Incentive Plans, Stock Option Activity (Details) - Stock Options [Member] |
3 Months Ended |
---|---|
May 04, 2019
$ / shares
shares
| |
Number of Options [Roll Forward] | |
Outstanding at beginning of period (in shares) | shares | 3,746,422 |
Granted (in shares) | shares | 286,849 |
Forfeited (in shares) | shares | (13,504) |
Exercised (in shares) | shares | (437,204) |
Outstanding at end of period (in shares) | shares | 3,582,563 |
Exercisable at end of period (in shares) | shares | 2,435,065 |
Weighted Average Exercise Price [Abstract] | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 15.29 |
Granted (in dollars per share) | $ / shares | 79.96 |
Forfeited (in dollars per share) | $ / shares | 64.25 |
Exercised (in dollars per share) | $ / shares | 13.91 |
Outstanding at end of period (in dollars per share) | $ / shares | 20.46 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 10.83 |
Weighted Average Remaining Contractual Term [Abstract] | |
Outstanding at end of period | 5 years 4 months 24 days |
Exercisable at end of period | 4 years 3 months 18 days |
Equity Incentive Plans, Weighted Average Assumptions (Details) - $ / shares |
3 Months Ended | |
---|---|---|
May 04, 2019 |
May 05, 2018 |
|
Equity Incentive Plans [Abstract] | ||
Weighted average grant date fair value per option granted (in dollars per share) | $ 24.95 | $ 18.73 |
Risk-free interest rate | 2.43% | 2.70% |
Expected dividend yield | 0.00% | 0.00% |
Expected term | 6 years 3 months | 6 years 3 months |
Expected volatility | 25.88% | 25.84% |
Equity Incentive Plans, RSU Activity (Details) - Restricted Stock Units [Member] |
3 Months Ended |
---|---|
May 04, 2019
$ / shares
shares
| |
Number of Shares [Roll Forward] | |
Non-vested at beginning of period (in shares) | shares | 220,200 |
Granted (in shares) | shares | 58,530 |
Forfeited (in shares) | shares | (799) |
Vested (in shares) | shares | (56,360) |
Non-vested at end of period (in shares) | shares | 221,571 |
Weighted Average Grant Date Fair Value [Abstract] | |
Non-vested at beginning of period (in dollars per share) | $ / shares | $ 35.75 |
Granted (in dollars per share) | $ / shares | 80.12 |
Forfeited (in dollars per share) | $ / shares | 75.90 |
Vested (in dollars per share) | $ / shares | 33.84 |
Non-vested at end of period (in dollars per share) | $ / shares | $ 47.81 |
Minimum [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting period | 3 years |
Cliff vesting period | 1 year |
Maximum [Member] | |
Equity Incentive Plans [Abstract] | |
Vesting period | 4 years |
Cliff vesting period | 4 years |
Equity Incentive Plans, Stock-Based Compensation Expense (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
May 04, 2019 |
May 05, 2018 |
|
Stock-Based Compensation Expense [Abstract] | ||
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 22.4 | |
Weighted average period to recognize stock-based compensation expense | 3 years | |
Selling, General and Administrative Expenses [Member] | ||
Stock-Based Compensation Expense [Abstract] | ||
Compensation expense | $ 2.2 | $ 1.6 |
Subsequent Events (Details) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
May 31, 2019
USD ($)
|
May 22, 2019
USD ($)
|
May 04, 2019
USD ($)
|
May 05, 2018
USD ($)
|
Aug. 29, 2018
Store
|
|
Subsequent Events [Abstract] | |||||
Proceeds from sale of property and equipment | $ 16 | $ 11 | |||
OBO [Member] | |||||
Subsequent Events [Abstract] | |||||
Number of Toys "R" Us store sites acquired | Store | 12 | ||||
Subsequent Event [Member] | OBO [Member] | |||||
Subsequent Events [Abstract] | |||||
Proceeds from sale of property and equipment | $ 42,000 | ||||
Subsequent Event [Member] | Credit Agreement [Member] | |||||
Subsequent Events [Abstract] | |||||
Maximum borrowing capacity | $ 150,000 | ||||
Subsequent Event [Member] | New Revolving Credit Facility [Member] | |||||
Subsequent Events [Abstract] | |||||
Term of facility | 5 years | ||||
Maximum borrowing capacity | $ 100,000 | ||||
Maturity date | May 22, 2024 | ||||
Subsequent Event [Member] | Letters of Credit [Member] | |||||
Subsequent Events [Abstract] | |||||
Maximum borrowing capacity | $ 45,000 | ||||
Subsequent Event [Member] | Swingline Loans [Member] | |||||
Subsequent Events [Abstract] | |||||
Maximum borrowing capacity | $ 25,000 |
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