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 |
(Commission File Number) |
(IRS Employer Identification No.) |
(Address of principal executive offices) |
(Zip Code) |
( |
(Registrant’s telephone number, including area code) |
Title of Each Class |
Trading Symbol |
Name of each exchange on which registered |
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. |
26 |
|
Item 4. |
26 |
|
PART II - OTHER INFORMATION |
||
Item 1. |
27 |
|
Item 1A. |
27 |
|
Item 2. |
28 |
|
Item 3. |
28 |
|
Item 4. |
28 |
|
Item 5. |
28 |
|
Item 6. |
29 |
Thirteen weeks ended |
Twenty-six weeks ended |
|||||||||||||||
August 1, 2020 |
August 3, 2019 |
August 1, 2020 |
August 3, 2019 |
|||||||||||||
Net sales |
$ |
$ |
$ |
$ |
||||||||||||
Cost of sales |
||||||||||||||||
Gross profit |
||||||||||||||||
Selling, general and administrative expenses |
||||||||||||||||
Depreciation and amortization expenses |
||||||||||||||||
Pre-opening expenses |
||||||||||||||||
Operating income |
||||||||||||||||
Interest income, net |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Income before income taxes |
||||||||||||||||
Income tax (benefit) expense |
( |
) |
||||||||||||||
Net income |
$ |
$ |
$ |
$ |
||||||||||||
Earnings per common share: |
||||||||||||||||
Basic |
$ |
$ |
$ |
$ |
||||||||||||
Diluted |
$ |
$ |
$ |
$ |
||||||||||||
Weighted average common shares outstanding: |
||||||||||||||||
Basic |
||||||||||||||||
Diluted |
August 1, 2020 |
August 3, 2019 |
February 1, 2020 |
||||||||||
Assets |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
$ |
$ |
$ |
|||||||||
Inventories |
||||||||||||
Accounts receivable |
||||||||||||
Prepaid expenses and other assets |
||||||||||||
Total current assets |
||||||||||||
Property and equipment, net of accumulated depreciation of $ |
||||||||||||
Operating lease right-of-use assets |
||||||||||||
Goodwill |
||||||||||||
Trade name |
||||||||||||
Other assets |
||||||||||||
Total assets |
$ |
$ |
$ |
|||||||||
Liabilities and Stockholders’ Equity |
||||||||||||
Current liabilities: |
||||||||||||
Current portion of long-term debt |
$ |
$ |
$ |
|||||||||
Accounts payable |
||||||||||||
Income taxes payable |
||||||||||||
Current portion of operating lease liabilities |
||||||||||||
Accrued expenses and other |
||||||||||||
Total current liabilities |
||||||||||||
Revolving credit facility |
||||||||||||
Long-term debt |
||||||||||||
Deferred income taxes |
||||||||||||
Long-term operating lease liabilities |
||||||||||||
Other long-term liabilities |
||||||||||||
Total liabilities |
||||||||||||
Stockholders’ equity: |
||||||||||||
Preferred stock - |
||||||||||||
Common stock - |
||||||||||||
Additional paid-in capital |
||||||||||||
Retained earnings |
||||||||||||
Treasury - common stock, at cost; |
( |
) |
( |
) |
( |
) |
||||||
Total stockholders’ equity |
||||||||||||
Total liabilities and stockholders’ equity |
$ |
$ |
$ |
Thirteen weeks ended August 1, 2020 and August 3, 2019 |
||||||||||||||||||||||||||||
Common stock |
Treasury stock |
Additional paid-in |
Retained |
Total stockholders’ |
||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
capital |
earnings |
equity |
||||||||||||||||||||||
Balance as of May 2, 2020 |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
|||||||||||||||||||
Stock-based compensation expense |
– |
– |
||||||||||||||||||||||||||
Proceeds from stock options exercised |
||||||||||||||||||||||||||||
Common shares withheld for taxes |
( |
) |
( |
) |
||||||||||||||||||||||||
Net income |
– |
– |
||||||||||||||||||||||||||
Balance as of August 1, 2020 |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
|||||||||||||||||||
Balance as of May 4, 2019 |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
|||||||||||||||||||
Stock-based compensation expense |
– |
– |
||||||||||||||||||||||||||
Proceeds from stock options exercised |
||||||||||||||||||||||||||||
Vesting of restricted stock |
||||||||||||||||||||||||||||
Net income |
– |
– |
||||||||||||||||||||||||||
Balance as of August 3, 2019 |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
Twenty-six weeks ended August 1, 2020 and August 3, 2019 |
||||||||||||||||||||||||||||
Common stock |
Treasury stock |
Additional paid-in |
Retained |
Total stockholders’ |
||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
capital |
earnings |
equity |
||||||||||||||||||||||
Balance as of February 1, 2020 |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
|||||||||||||||||||
Stock-based compensation expense |
– |
– |
||||||||||||||||||||||||||
Proceeds from stock options exercised |
||||||||||||||||||||||||||||
Vesting of restricted stock |
||||||||||||||||||||||||||||
Common shares withheld for taxes |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||
Net income |
– |
– |
||||||||||||||||||||||||||
Balance as of August 1, 2020 |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
|||||||||||||||||||
Balance as of February 2, 2019 |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
|||||||||||||||||||
Stock-based compensation expense |
– |
– |
||||||||||||||||||||||||||
Proceeds from stock options exercised |
||||||||||||||||||||||||||||
Vesting of restricted stock |
||||||||||||||||||||||||||||
Common shares withheld for taxes |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||
Net income |
– |
– |
||||||||||||||||||||||||||
Balance as of August 3, 2019 |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
Twenty-six weeks ended |
||||||||
August 1, 2020 |
August 3, 2019 |
|||||||
Cash flows from operating activities: |
||||||||
Net income |
$ |
$ |
||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization of property and equipment |
||||||||
Amortization of debt issuance costs |
||||||||
Loss (gain) on sale of assets |
( |
) |
||||||
Deferred income tax provision (benefit) |
( |
) |
||||||
Stock-based compensation expense |
||||||||
Changes in operating assets and liabilities: |
||||||||
Inventories |
( |
) |
||||||
Accounts receivable |
( |
) |
||||||
Prepaid expenses and other assets |
( |
) |
( |
) |
||||
Accounts payable |
||||||||
Income taxes payable |
( |
) |
( |
) |
||||
Accrued expenses and other liabilities |
( |
) |
||||||
Net cash provided by operating activities |
||||||||
Cash flows from investing activities: |
||||||||
Purchases of property and equipment |
( |
) |
( |
) |
||||
Proceeds from sale of property and equipment |
||||||||
Net cash (used in) provided by investing activities |
( |
) |
||||||
Cash flows from financing activities: |
||||||||
Repayments on finance leases |
( |
) |
( |
) |
||||
Payment of debt issuance costs |
( |
) |
||||||
Proceeds from stock option exercises |
||||||||
Common shares withheld for taxes |
( |
) |
( |
) |
||||
Net cash provided by financing activities |
||||||||
Net increase in cash and cash equivalents |
||||||||
Cash and cash equivalents at the beginning of the period |
||||||||
Cash and cash equivalents at the end of the period |
$ |
$ |
||||||
Supplemental disclosure of cash flow information: |
||||||||
Cash paid during the period for: |
||||||||
Interest |
$ |
$ |
||||||
Income taxes |
$ |
$ |
||||||
Non-cash investing activities: |
||||||||
Accrued purchases of property and equipment |
$ |
$ |
(1) | Organization and Summary of Significant Accounting Policies |
(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) | Immaterial Correction of Prior Period Financial Statements |
(g) | Impact of the Novel Coronavirus (“COVID-19”) |
(2) | Net Sales |
Twenty-six weeks ended |
||||||||
August 1, 2020 |
August 3, 2019 |
|||||||
Beginning balance |
$ |
$ |
||||||
Revenue deferred |
||||||||
Revenue recognized |
( |
) |
( |
) |
||||
Ending balance |
$ |
$ |
Twenty-six weeks ended |
||||||||
August 1, 2020 |
August 3, 2019 |
|||||||
Beginning balance |
$ |
$ |
||||||
Gift card issuances |
||||||||
Gift card redemption and breakage |
( |
) |
( |
) |
||||
Ending balance |
$ |
$ |
(3) | Earnings per Common Share |
Thirteen weeks ended |
Twenty-six weeks ended |
|||||||||||||||
August 1, 2020 |
August 3, 2019 |
August 1, 2020 |
August 3, 2019 |
|||||||||||||
Net income |
$ |
$ |
$ |
$ |
||||||||||||
Weighted average number of common shares outstanding - Basic |
||||||||||||||||
Dilutive impact of stock options and restricted stock units |
||||||||||||||||
Weighted average number of common shares outstanding - Diluted |
||||||||||||||||
Earnings per common share - Basic |
$ |
$ |
$ |
$ |
||||||||||||
Earnings per common share - Diluted |
$ |
$ |
$ |
$ |
(4) | Commitments and Contingencies |
2020 |
$ |
|||
2021 |
||||
2022 |
||||
2023 |
||||
2024 |
||||
Thereafter |
||||
Total undiscounted lease payments (1) |
||||
Less: Imputed interest |
( |
) |
||
Total lease obligations |
||||
Less: Current obligations under leases |
( |
) |
||
Long-term lease obligations |
$ |
(1) |
Twenty-six weeks ended |
||||||||
August 1, 2020 |
August 3, 2019 |
|||||||
Cash paid for operating leases |
$ |
$ |
||||||
Operating lease cost |
||||||||
Variable lease cost |
||||||||
Non-cash right-of-use assets obtained in exchange for lease obligations |
||||||||
Weighted-average remaining lease term |
||||||||
Weighted-average discount rate |
% |
% |
(5) | Accrued Expenses and Other |
August 1, 2020 |
August 3, 2019 |
February 1, 2020 |
||||||||||
Compensation and benefits |
$ |
$ |
$ |
|||||||||
Deferred revenue |
||||||||||||
Freight |
||||||||||||
Sales and use taxes |
||||||||||||
Insurance |
||||||||||||
Real estate related |
||||||||||||
Advertising |
||||||||||||
Other |
||||||||||||
$ |
$ |
$ |
(6) | Debt Obligations and Financing Arrangements |
(7) | Income Taxes |
(8) | Equity Incentive Plans |
Number of options |
Weighted average exercise price |
Weighted average remaining contractual term (years) |
||||||||||
Outstanding at February 1, 2020 |
$ |
|||||||||||
Granted |
||||||||||||
Forfeited |
( |
) |
||||||||||
Exercised |
( |
) |
||||||||||
Outstanding at August 1, 2020 |
||||||||||||
Exercisable at August 1, 2020 |
Twenty-six weeks ended |
||||||||
August 1, 2020 |
August 3, 2019 |
|||||||
Risk-free interest rate |
% |
% |
||||||
Expected dividend yield |
||||||||
Expected term (years) |
||||||||
Expected volatility |
% |
% |
Number of shares |
Weighted average grant date fair value |
|||||||
Non-vested balance at February 1, 2020 |
$ |
|||||||
Granted |
||||||||
Forfeited |
( |
) |
||||||
Vested |
( |
) |
||||||
Non-vested balance at August 1, 2020 |
ITEM 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | Implemented procedures for social distancing, cleaning, sanitation, and use of protective personal equipment in our stores, distribution centers, and store support center to adhere to the appropriate CDC and local guidelines. |
• | Implemented temporary premium pay for our in-store associates, store leadership, and distribution center employees. |
• | Supported our communities by raising money to provide much needed funding to local food banks through a partnership with Feeding America. |
• | 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 2.2 million square feet; 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 |
Twenty-six weeks ended |
|||||||||||||||
August 1, 2020 |
August 3, 2019 |
August 1, 2020 |
August 3, 2019 |
|||||||||||||
( dollars in thousands) |
||||||||||||||||
Condensed consolidated statements of income data: |
||||||||||||||||
Net sales |
$ |
529,313 |
$ |
333,865 |
$ |
878,676 |
$ |
658,719 |
||||||||
Cost of sales |
322,471 |
209,832 |
531,468 |
401,952 |
||||||||||||
Gross profit |
206,842 |
124,033 |
347,208 |
256,767 |
||||||||||||
Selling, general and administrative expenses |
109,149 |
87,350 |
198,869 |
170,682 |
||||||||||||
Depreciation and amortization expenses |
4,122 |
3,512 |
8,066 |
6,921 |
||||||||||||
Pre-opening expenses |
1,545 |
2,420 |
5,267 |
7,629 |
||||||||||||
Operating income |
92,026 |
30,751 |
135,006 |
71,535 |
||||||||||||
Interest income, net |
(26 |
) |
(372 |
) |
(109 |
) |
(517 |
) |
||||||||
Income before income taxes |
92,052 |
31,123 |
135,115 |
72,052 |
||||||||||||
Income tax (benefit) expense |
(7,331 |
) |
5,953 |
2,276 |
8,165 |
|||||||||||
Net income |
$ |
99,383 |
$ |
25,170 |
$ |
132,839 |
$ |
63,887 |
||||||||
Percentage of net sales (1): |
||||||||||||||||
Net sales |
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
||||||||
Cost of sales |
60.9 |
62.8 |
60.5 |
61.0 |
||||||||||||
Gross profit |
39.1 |
37.2 |
39.5 |
39.0 |
||||||||||||
Selling, general and administrative expenses |
20.6 |
26.2 |
22.6 |
25.9 |
||||||||||||
Depreciation and amortization expenses |
0.8 |
1.1 |
0.9 |
1.1 |
||||||||||||
Pre-opening expenses |
0.3 |
0.7 |
0.6 |
1.2 |
||||||||||||
Operating income |
17.4 |
9.2 |
15.4 |
10.9 |
||||||||||||
Interest income, net |
— |
(0.1 |
) |
— |
(0.1 |
) |
||||||||||
Income before income taxes |
17.4 |
9.3 |
15.4 |
10.9 |
||||||||||||
Income tax (benefit) expense |
(1.4 |
) |
1.8 |
0.3 |
1.2 |
|||||||||||
Net income |
18.8 |
% |
7.5 |
% |
15.1 |
% |
9.7 |
% |
||||||||
Select operating data: |
||||||||||||||||
New store openings |
6 |
8 |
23 |
29 |
||||||||||||
Number of closed stores |
— |
— |
(2 |
) |
— |
|||||||||||
Number of stores open at end of period |
366 |
332 |
366 |
332 |
||||||||||||
Average net sales per store (2) |
$ |
1,454 |
$ |
1,018 |
$ |
2,441 |
$ |
2,050 |
||||||||
Comparable stores sales change |
43.3 |
% |
(1.7 |
)% |
20.2 |
% |
(0.5 |
)% |
(1) | Components may not add to totals due to rounding. |
(2) | Average net sales per store represents the weighted average of total net weekly sales divided by the number of stores open at the end of each week for the respective periods presented. |
Thirteen weeks ended |
Twenty-six weeks ended |
|||||||||||||||
August 1, 2020 |
August 3, 2019 |
August 1, 2020 |
August 3, 2019 |
|||||||||||||
( dollars in thousands) |
||||||||||||||||
Net income |
$ |
99,383 |
$ |
25,170 |
$ |
132,839 |
$ |
63,887 |
||||||||
Interest income, net |
(26 |
) |
(372 |
) |
(109 |
) |
(517 |
) |
||||||||
Depreciation and amortization expenses (1) |
5,653 |
4,337 |
11,063 |
8,536 |
||||||||||||
Income tax (benefit) expense |
(7,331 |
) |
5,953 |
2,276 |
8,165 |
|||||||||||
EBITDA |
97,679 |
35,088 |
146,069 |
80,071 |
||||||||||||
Gain from insurance settlement |
- |
- |
- |
(565 |
) |
|||||||||||
Non-cash stock-based compensation expense |
1,727 |
2,432 |
3,046 |
4,625 |
||||||||||||
Adjusted EBITDA |
$ |
99,406 |
$ |
37,520 |
$ |
149,115 |
$ |
84,131 |
(1) | Includes depreciation and amortization relating to our distribution centers, which is included within cost of sales on our condensed consolidated statements of income. |
Twenty-six weeks ended |
||||||||
August 1, 2020 |
August 3, 2019 |
|||||||
(in thousands) |
||||||||
Net cash provided by operating activities |
$ |
210,194 |
$ |
18,639 |
||||
Net cash (used in) provided by investing activities |
(18,045 |
) |
2,342 |
|||||
Net cash provided by financing activities |
23,011 |
5,551 |
||||||
Net increase in cash and cash equivalents |
$ |
215,160 |
$ |
26,532 |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
• | Increased Costs of Operation. In response to COVID-19, we have taken actions that focus on providing a safe work and shopping environment. As a result of these actions, we have incurred and expect to continue to incur higher payroll expenses at our stores and distribution facilities and incremental cleaning and safety costs at all of our facilities. |
• | Supply Chain Disruptions. Governmental orders or other challenges could impact one or more of our key suppliers or result in the closure of one or more of our centralized distribution centers, our stores or our corporate headquarters and we may be unable to maintain delivery schedules or provide other support functions to our stores. |
• | Economic Uncertainty. Widespread volatility and deteriorations in consumer spending, economic and market conditions, the risk of significant recession and a record rise in unemployment could adversely impact our sales. |
• | Consumer Shopping Trends. The adoption of travel bans, quarantines, shelter-in-place orders, among other things could cause a shift in consumer attitudes with respect to in-person shopping and may decrease foot traffic in our stores. |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | OTHER INFORMATION |
Exhibit No. |
Description of Exhibits |
|
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: September 1, 2020 |
/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: September 1, 2020
|
/s/ John Swygert
|
John Swygert
President and Chief Executive Officer
(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: September 1, 2020
|
/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: September 1, 2020
|
||
/s/ John Swygert
|
||
John Swygert
|
||
President and 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: September 1, 2020
|
||
/s/ Jay Stasz
|
||
Jay Stasz
|
||
Chief Financial Officer
|
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Aug. 01, 2020 |
Aug. 03, 2019 |
Aug. 01, 2020 |
Aug. 03, 2019 |
|
Condensed Consolidated Statements of Income (Unaudited) [Abstract] | ||||
Net sales | $ 529,313 | $ 333,865 | $ 878,676 | $ 658,719 |
Cost of sales | 322,471 | 209,832 | 531,468 | 401,952 |
Gross profit | 206,842 | 124,033 | 347,208 | 256,767 |
Selling, general and administrative expenses | 109,149 | 87,350 | 198,869 | 170,682 |
Depreciation and amortization expenses | 4,122 | 3,512 | 8,066 | 6,921 |
Pre-opening expenses | 1,545 | 2,420 | 5,267 | 7,629 |
Operating income | 92,026 | 30,751 | 135,006 | 71,535 |
Interest income, net | (26) | (372) | (109) | (517) |
Income before income taxes | 92,052 | 31,123 | 135,115 | 72,052 |
Income tax (benefit) expense | (7,331) | 5,953 | 2,276 | 8,165 |
Net income | $ 99,383 | $ 25,170 | $ 132,839 | $ 63,887 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 1.53 | $ 0.40 | $ 2.07 | $ 1.01 |
Diluted (in dollars per share) | $ 1.50 | $ 0.38 | $ 2.02 | $ 0.96 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 65,137 | 63,517 | 64,093 | 63,351 |
Diluted (in shares) | 66,051 | 66,300 | 65,641 | 66,237 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands |
Aug. 01, 2020 |
Feb. 01, 2020 |
Aug. 03, 2019 |
---|---|---|---|
Assets | |||
Property and equipment, accumulated depreciation and amortization | $ 87,810 | $ 77,286 | $ 68,569 |
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) | 66,005 | 63,712 | 63,592 |
Treasury - common stock (in shares) | 698 | 698 | 9 |
Organization and Summary of Significant Accounting Policies |
6 Months Ended | ||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 01, 2020 | |||||||||||||||||||||||||||||||||
Organization and Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||
Organization and Summary of Significant Accounting Policies |
Ollie’s Bargain Outlet Holdings, Inc. and subsidiaries (collectively referred 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 366 retail locations in 25 states as of August 1, 2020. Ollie’s Bargain Outlet retail locations are located in Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Indiana, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, New Jersey, New York, North Carolina, Ohio, Oklahoma, 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 August 1, 2020 and August 3, 2019 refer to the thirteen weeks from May 3, 2020 to August 1, 2020 and from May 5, 2019 to August 3, 2019, respectively. References to year-to-date periods ended August 1, 2020 and August 3, 2019 refer to the twenty-six weeks from February 2, 2020 to August 1, 2020 and from February 3, 2019 to August 3, 2019, respectively. References to “2019” refer to the fiscal year ended February 1, 2020 and references to “2020” refer to the fiscal year ending January 30, 2021. Both periods consist of 52 weeks.
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 August 1, 2020 and August 3, 2019, and the condensed consolidated statements of income and stockholders’ equity for the thirteen and twenty-six weeks ended August 1, 2020 and August 3, 2019, and the condensed consolidated statements of cash flows for the twenty-six weeks ended August 1, 2020 and August 3, 2019 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 2020 or any other period. All intercompany accounts, transactions, and balances have been eliminated in consolidation.
The Company’s balance sheet as of February 1, 2020, 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 25, 2020 (“Annual Report”), but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the financial statements for 2019 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.
During the fourth quarter of fiscal 2019, the Company identified that it had been incorrectly recording the activity within one of its cash accounts as borrowings and repayments on its revolving credit facility within the consolidated statements of cash flows although there were no actual borrowings or repayments on the revolving credit facility during the periods. The error had no impact to total net cash used in financing activities or the Company’s condensed consolidated balance sheets or condensed consolidated statements of income. The Company corrected the presentation for the prior period in the accompanying condensed consolidated statement of cash flows.
The outbreak of the novel coronavirus COVID-19, which was declared a global pandemic by the World Health Organization on March 11, 2020, has led to adverse impacts on the U.S. and global economies. The outbreak of COVID-19 and related measures to quell the outbreak have impacted the Company’s inventory supply chain, operations and customer demand. The Company’s stores and distribution centers have continued to operate as an essential business during the COVID-19 pandemic and the Company is committed to maintaining a safe work and shopping environment. The COVID-19 pandemic could further affect the Company’s operations and the operations of its suppliers and vendors as a result of continuing restrictions and limitations on travel, shelter-in-place orders, limitations on store or facility operations up to and including closures, and other governmental, business or consumer actions. The extent to which the COVID-19 pandemic will impact the Company’s operations, liquidity or financial results in subsequent periods is uncertain, but such impact could be material.
|
Net Sales |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 01, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 issued upon the achievement of specified point levels are subject to expiration. Unless temporarily extended, the maximum redemption period is 45 days. 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. Gift cards do not expire. 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 |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 01, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 196,750 and 281,328 for the thirteen weeks ended August 1, 2020 and August 3, 2019, respectively, and 459,221 and 213,506 for the twenty-six weeks ended August 1, 2020 and August 3, 2019, 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 0 and 219 for the thirteen weeks ended August 1, 2020 and August 3, 2019, respectively, and 23,896 and 14,673 for the twenty-six weeks ended August 1, 2020 and August 3, 2019, respectively, were excluded from the calculation of diluted weighted average common shares outstanding because the effect would have been antidilutive.
|
Commitments and Contingencies |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 01, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies |
Commitments
The Company accounts for leases in accordance with Accounting Standards Update (“ASU”) 2016-02, Leases, which was adopted as of February 3, 2019. Pursuant to the adoption of the new standard, the Company elected the practical expedients upon transition that did 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 for leases existing at the date of adoption that are not subsequently modified.
Ollie’s generally leases its stores, offices and distribution facilities under operating leases that expire at various dates through 2034. 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 common-area maintenance, insurance, real estate taxes, water and sewer costs and repairs, on a fixed or variable payment basis, the cost of which, for leases existing as of the adoption of ASU 2016-02, is charged to the related expense category rather than being accounted for as rent expense. For leases entered into after the adoption of ASU 2016-02, the Company accounts for lease components together with non-lease components as a single component for all classes of underlying assets. 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.
Store and office lease costs are classified in selling, general and administrative expenses and distribution center lease costs are classified in cost of goods sold on the condensed consolidated statements of income.
The following table summarizes the maturity of the Company’s operating lease liabilities as of August 1, 2020 (in thousands):
The following table summarizes other information related to the Company’s operating leases as of and for the respective periods (dollars in thousands):
Related Party Leases
The Company has entered into five non-cancelable operating leases with related parties for office and store locations that expire at various dates through 2033. Ollie’s made $0.8 million and $0.7 million in rent payments to such related parties during the twenty-six weeks ended August 1, 2020 and August 3, 2019, respectively. The lease payments are included in the operating lease disclosures stated above.
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.
Sale-Leaseback
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 $42.0 million for the 12 locations, which resulted in no net gain or loss. Each of the 12 leased location has 15-year lease terms with options for renewal and are included in operating lease liabilities in the accompanying condensed consolidated balance sheets.
|
Accrued Expenses and Other |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 01, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other |
Accrued expenses and other consists of the following (in thousands):
|
Debt Obligations and Financing Arrangements |
6 Months Ended | ||
---|---|---|---|
Aug. 01, 2020 | |||
Debt Obligations and Financing Arrangements [Abstract] | |||
Debt Obligations and Financing Arrangements |
Long-term debt consists of finance leases as of August 1, 2020, August 3, 2019 and February 1, 2020.
The Company’s prior credit facilities consisted of a $200.0 million term loan, which was fully paid as of February 2, 2019, and a $100.0 million revolving credit facility.
On May 22, 2019, the Company completed a transaction in which it refinanced its credit facility (the “Credit Facility”). The Credit Facility 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 “Revolving Credit Facility”). The loans under the Revolving Credit Facility mature on May 22, 2024. In addition, the Company may at any time add term loan facilities or additional revolving commitments up to $150.0 million pursuant to terms and conditions set out in the Credit Facility.
The interest rates for the Credit Facility are calculated as follows: for Base Rate Loans, 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 0.00% to 0.50% for a Base Rate Loan and 1.00% to 1.50% for a Eurodollar Loan, based on availability under the Credit Facility. The Eurodollar Rate is subject to a 0% floor.
Under the terms of the Revolving Credit Facility, as of August 1, 2020, 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 August 1, 2020, the Company had no outstanding borrowings under the Revolving Credit Facility, with $92.0 million of borrowing availability, outstanding letters of credit commitments of $7.8 million and $0.2 million of rent reserves. The Revolving Credit Facility also contains a variable unused line fee ranging from 0.125% to 0.250% per annum.
The Credit Facility is collateralized by the Company’s assets and equity and contains a financial covenant, as well as certain business covenants, including restrictions on dividend payments, which the Company must comply with during the term of the agreement. The financial covenant is a consolidated fixed charge coverage ratio test of at least 1.0 to 1.0 applicable during a covenant period, based on reference to availability. The Company was in compliance with all terms of the Credit Facility during and as of the twenty-six weeks ended August 1, 2020.
The provisions of the Credit Facility restrict all of the net assets of the Company’s consolidated subsidiaries, which constitutes all of the net assets on the Company’s condensed consolidated balance sheet as of August 1, 2020, 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 Facility, subject to material exceptions including proforma compliance with the applicable conditions described in the Credit Facility.
|
Income Taxes |
6 Months Ended | ||
---|---|---|---|
Aug. 01, 2020 | |||
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 and twenty-six weeks ended August 1, 2020 were (8.0)% and 1.7%, respectively. The effective tax rates for the thirteen and twenty-six weeks ended August 3, 2019 were 19.1% and 11.3%, respectively. The effective tax rates during the thirteen and twenty-six weeks ended August 1, 2020 were affected by excess tax benefits related to stock-based compensation of $30.5 million and $31.7 million, respectively, primarily due to the exercise of stock options by the estate of a former executive of the Company, as further discussed in Note 8. The thirteen and twenty-six weeks ended August 3, 2019 included a similar discrete tax benefit of $1.7 million and $9.8 million, respectively.
|
Equity Incentive Plans |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 01, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Incentive Plans [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 August 1, 2020, there were 2,811,100 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 for the twenty-six weeks ended August 1, 2020 follows:
In December 2019, the Company announced the unexpected passing of Mark Butler, the then Chairman of the Board President and Chief Executive Officer of the Company. During the thirteen weeks ended August 1, 2020, the estate of Mark Butler exercised 1.9 million vested stock options and the Company received $17.1 million in proceeds.
The weighted average grant date fair value per option for options granted during the twenty-six weeks ended August 1, 2020 and August 3, 2019 was $13.13 and $24.97, 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:
The expected life of stock options is 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 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.
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
or four years or cliff vest in 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 twenty-six weeks ended August 1, 2020 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 $1.7 million and $2.4 million for the thirteen weeks ended August 1, 2020 and August 3, 2019, respectively, and $3.0 million and $4.6 million for the twenty-six weeks ended August 1, 2020 and August 3, 2019, respectively.
As of August 1, 2020, there was $17.8 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 2.9 years. Compensation costs related to awards are recognized using the straight-line method.
|
Organization and Summary of Significant Accounting Policies (Policies) |
6 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 01, 2020 | |||||||||||||
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 August 1, 2020 and August 3, 2019 refer to the thirteen weeks from May 3, 2020 to August 1, 2020 and from May 5, 2019 to August 3, 2019, respectively. References to year-to-date periods ended August 1, 2020 and August 3, 2019 refer to the twenty-six weeks from February 2, 2020 to August 1, 2020 and from February 3, 2019 to August 3, 2019, respectively. References to “2019” refer to the fiscal year ended February 1, 2020 and references to “2020” refer to the fiscal year ending January 30, 2021. Both periods consist of 52 weeks.
|
||||||||||||
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 August 1, 2020 and August 3, 2019, and the condensed consolidated statements of income and stockholders’ equity for the thirteen and twenty-six weeks ended August 1, 2020 and August 3, 2019, and the condensed consolidated statements of cash flows for the twenty-six weeks ended August 1, 2020 and August 3, 2019 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 2020 or any other period. All intercompany accounts, transactions, and balances have been eliminated in consolidation.
The Company’s balance sheet as of February 1, 2020, 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 25, 2020 (“Annual Report”), but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the financial statements for 2019 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.
|
||||||||||||
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.
|
||||||||||||
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.
|
||||||||||||
Immaterial Correction of Prior Period Financial Statements |
During the fourth quarter of fiscal 2019, the Company identified that it had been incorrectly recording the activity within one of its cash accounts as borrowings and repayments on its revolving credit facility within the consolidated statements of cash flows although there were no actual borrowings or repayments on the revolving credit facility during the periods. The error had no impact to total net cash used in financing activities or the Company’s condensed consolidated balance sheets or condensed consolidated statements of income. The Company corrected the presentation for the prior period in the accompanying condensed consolidated statement of cash flows.
|
Net Sales (Policies) |
6 Months Ended |
---|---|
Aug. 01, 2020 | |
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) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 01, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 issued upon the achievement of specified point levels are subject to expiration. Unless temporarily extended, the maximum redemption period is 45 days. 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. Gift cards do not expire. 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 (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 01, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Common Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Common Share |
The following table summarizes those effects for the diluted earnings per common share calculation (in thousands, except per share amounts):
|
Commitments and Contingencies (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 01, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity of Operating Lease Liabilities |
The following table summarizes the maturity of the Company’s operating lease liabilities as of August 1, 2020 (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Information Related to Operating Leases |
The following table summarizes other information related to the Company’s operating leases as of and for the respective periods (dollars in thousands):
|
Accrued Expenses and Other (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 01, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other |
Accrued expenses and other consists of the following (in thousands):
|
Equity Incentive Plans (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 01, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Incentive Plans [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Activity |
A summary of the Company’s stock option activity and related information for the twenty-six weeks ended August 1, 2020 follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Assumptions |
The weighted average grant date fair value per option for options granted during the twenty-six weeks ended August 1, 2020 and August 3, 2019 was $13.13 and $24.97, respectively. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model that used the weighted average assumptions in the following table:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RSU Activity |
A summary of the Company’s RSU activity and related information for the twenty-six weeks ended August 1, 2020 is as follows:
|
Organization and Summary of Significant Accounting Policies (Details) |
6 Months Ended |
---|---|
Aug. 01, 2020
State
Location
Segment
| |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Number of retail locations | Location | 366 |
Number of states in which retail locations are located | State | 25 |
Number of operating segments | Segment | 1 |
Net Sales (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Aug. 01, 2020 |
Aug. 03, 2019 |
|
Net Sales [Abstract] | ||
Maximum redemption period for discount awards | 45 days | |
Ollie's Army Loyalty Program Liability [Abstract] | ||
Beginning balance | $ 8,254 | $ 9,055 |
Revenue deferred | 9,070 | 8,028 |
Revenue recognized | (7,807) | (7,142) |
Ending balance | 9,517 | 9,941 |
Gift Card Liability [Abstract] | ||
Beginning balance | 1,679 | 1,448 |
Gift card issuances | 1,854 | 2,253 |
Gift card redemption and breakage | (1,876) | (2,285) |
Ending balance | $ 1,657 | $ 1,416 |
Commitments and Contingencies, Related Party Leases (Details) - Operating Leases for Office and Store Locations with Related Parties [Member] $ in Millions |
6 Months Ended | |
---|---|---|
Aug. 01, 2020
USD ($)
Lease
|
Aug. 03, 2019
USD ($)
|
|
Related Party Leases [Abstract] | ||
Number of non-cancelable operating leases with related parties | Lease | 5 | |
Payments to related parties | $ | $ 0.8 | $ 0.7 |
Commitments and Contingencies, Sale-Leaseback (Details) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
May 31, 2019
USD ($)
|
Aug. 01, 2020
USD ($)
|
Aug. 03, 2019
USD ($)
|
Aug. 29, 2018
Store
|
|
Sale-Leaseback [Abstract] | ||||
Proceeds from sale of property and equipment | $ 32 | $ 42,693 | ||
OBO [Member] | ||||
Sale-Leaseback [Abstract] | ||||
Number of Toys "R" Us store sites acquired | Store | 12 | |||
Proceeds from sale of property and equipment | $ 42,000 | |||
Net gain (loss) from sale leaseback | $ 0 | |||
Term of leases | 15 years |
Accrued Expenses and Other (Details) - USD ($) $ in Thousands |
Aug. 01, 2020 |
Feb. 01, 2020 |
Aug. 03, 2019 |
---|---|---|---|
Accrued Expenses and Other [Abstract] | |||
Compensation and benefits | $ 23,612 | $ 11,375 | $ 11,985 |
Deferred revenue | 11,174 | 9,933 | 11,357 |
Freight | 7,050 | 3,363 | 4,528 |
Sales and use taxes | 6,718 | 4,590 | 4,529 |
Insurance | 5,766 | 4,864 | 4,572 |
Real estate related | 5,196 | 4,787 | 4,173 |
Advertising | 1,353 | 2,486 | 1,374 |
Other | 16,652 | 15,334 | 15,748 |
Total accrued expenses and other | $ 77,521 | $ 56,732 | $ 58,266 |
Debt Obligations and Financing Arrangements (Details) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Aug. 01, 2020
USD ($)
|
May 22, 2019
USD ($)
|
Feb. 02, 2019
USD ($)
|
|
Term Loan Facility [Member] | |||
Debt Obligations and Financing Arrangements [Abstract] | |||
Face amount | $ 200.0 | ||
Revolving Credit Facility [Member] | |||
Debt Obligations and Financing Arrangements [Abstract] | |||
Maximum borrowing capacity | $ 100.0 | ||
Revolving Credit Facility [Member] | Maximum [Member] | |||
Debt Obligations and Financing Arrangements [Abstract] | |||
Percentage of most recent appraised value of eligible inventory | 90.00% | ||
Credit Facility [Member] | |||
Debt Obligations and Financing Arrangements [Abstract] | |||
Maximum borrowing capacity | $ 150.0 | ||
Credit Facility [Member] | Minimum [Member] | |||
Debt Obligations and Financing Arrangements [Abstract] | |||
Variable unused line fee percentage | 0.125% | ||
Consolidated fixed charge coverage ratio | 1.0 | ||
Credit Facility [Member] | Maximum [Member] | |||
Debt Obligations and Financing Arrangements [Abstract] | |||
Variable unused line fee percentage | 0.25% | ||
Credit Facility [Member] | Federal Funds Effective Rate [Member] | |||
Debt Obligations and Financing Arrangements [Abstract] | |||
Basis spread | 0.50% | ||
Credit Facility [Member] | Eurodollar Rate [Member] | |||
Debt Obligations and Financing Arrangements [Abstract] | |||
Basis spread | 1.00% | ||
Interest rate floor | 0.00% | ||
Credit Facility [Member] | Eurodollar Rate [Member] | Minimum [Member] | |||
Debt Obligations and Financing Arrangements [Abstract] | |||
Basis spread | 1.00% | ||
Credit Facility [Member] | Eurodollar Rate [Member] | Maximum [Member] | |||
Debt Obligations and Financing Arrangements [Abstract] | |||
Basis spread | 1.50% | ||
Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | |||
Debt Obligations and Financing Arrangements [Abstract] | |||
Basis spread | 0.00% | ||
Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | |||
Debt Obligations and Financing Arrangements [Abstract] | |||
Basis spread | 0.50% | ||
Revolving Credit Facility [Member] | |||
Debt Obligations and Financing Arrangements [Abstract] | |||
Term of facility | 5 years | ||
Maximum borrowing capacity | 100.0 | ||
Maturity date | May 22, 2024 | ||
Outstanding borrowings | $ 0.0 | ||
Borrowing availability | 92.0 | ||
Outstanding letters of credit commitments | 7.8 | ||
Rent reserves | $ 0.2 | ||
Sub-Facility for Letters of Credit [Member] | |||
Debt Obligations and Financing Arrangements [Abstract] | |||
Maximum borrowing capacity | 45.0 | ||
Sub-Facility for Swingline Loans [Member] | |||
Debt Obligations and Financing Arrangements [Abstract] | |||
Maximum borrowing capacity | $ 25.0 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Aug. 01, 2020 |
Aug. 03, 2019 |
Aug. 01, 2020 |
Aug. 03, 2019 |
|
Income Taxes [Abstract] | ||||
Effective income tax rate | (8.00%) | 19.10% | 1.70% | 11.30% |
Excess tax benefits related to stock-based compensation | $ (30.5) | $ (1.7) | $ (31.7) | $ (9.8) |
Equity Incentive Plans, Equity Incentive Plans (Details) |
6 Months Ended |
---|---|
Aug. 01, 2020
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) | 2,811,100 |
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) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Aug. 01, 2020 |
Aug. 01, 2020 |
Aug. 03, 2019 |
|
Equity Incentive Plans [Abstract] | |||
Proceeds from stock option exercises | $ 17,100 | $ 24,085 | $ 7,572 |
Stock Options [Member] | |||
Number of Options [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 3,228,692 | ||
Granted (in shares) | 512,706 | ||
Forfeited (in shares) | (52,338) | ||
Exercised (in shares) | (1,900,000) | (2,246,515) | |
Outstanding at end of period (in shares) | 1,442,545 | 1,442,545 | |
Exercisable at end of period (in shares) | 588,041 | 588,041 | |
Weighted Average Exercise Price [Abstract] | |||
Outstanding at beginning of period (in dollars per share) | $ 19.83 | ||
Granted (in dollars per share) | 41.20 | ||
Forfeited (in dollars per share) | 46.29 | ||
Exercised (in dollars per share) | 10.72 | ||
Outstanding at end of period (in dollars per share) | $ 40.61 | 40.61 | |
Exercisable at end of period (in dollars per share) | $ 25.12 | $ 25.12 | |
Weighted Average Remaining Contractual Term [Abstract] | |||
Outstanding at end of period | 7 years 6 months | ||
Exercisable at end of period | 5 years 2 months 12 days |
Equity Incentive Plans, Weighted Average Assumptions (Details) - $ / shares |
6 Months Ended | |
---|---|---|
Aug. 01, 2020 |
Aug. 03, 2019 |
|
Equity Incentive Plans [Abstract] | ||
Weighted average grant date fair value per option granted (in dollars per share) | $ 13.13 | $ 24.97 |
Risk-free interest rate | 0.77% | 2.42% |
Expected dividend yield | 0.00% | 0.00% |
Expected term | 6 years 3 months | 6 years 3 months |
Expected volatility | 30.49% | 25.88% |
Equity Incentive Plans, RSU Activity (Details) - Restricted Stock Units [Member] |
6 Months Ended |
---|---|
Aug. 01, 2020
$ / shares
shares
| |
Number of Shares [Roll Forward] | |
Non-vested at beginning of period (in shares) | shares | 177,546 |
Granted (in shares) | shares | 62,998 |
Forfeited (in shares) | shares | (21,926) |
Vested (in shares) | shares | (63,744) |
Non-vested at end of period (in shares) | shares | 154,874 |
Weighted Average Grant Date Fair Value [Abstract] | |
Non-vested at beginning of period (in dollars per share) | $ / shares | $ 48.78 |
Granted (in dollars per share) | $ / shares | 42.29 |
Forfeited (in dollars per share) | $ / shares | 51.56 |
Vested (in dollars per share) | $ / shares | 33.34 |
Non-vested at end of period (in dollars per share) | $ / shares | $ 52.10 |
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 | 6 Months Ended | ||
---|---|---|---|---|
Aug. 01, 2020 |
Aug. 03, 2019 |
Aug. 01, 2020 |
Aug. 03, 2019 |
|
Stock-Based Compensation Expense [Abstract] | ||||
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 17.8 | $ 17.8 | ||
Weighted average period to recognize stock-based compensation expense | 2 years 10 months 24 days | |||
Selling, General and Administrative Expenses [Member] | ||||
Stock-Based Compensation Expense [Abstract] | ||||
Compensation expense | $ 1.7 | $ 2.4 | $ 3.0 | $ 4.6 |
3\!:D!NO4C*A7(/6IZ7;_6Z^L.3J;G/77;
M@4@31BQJ'A@GPJ'F@1',2.*GAJ-1BZ,@N=^TSI^+LO1*:>06&V.)W;J7%^)6
MYW&G)(X,!0XOQ4;F"M6R\K;&??!)(P&AXG8GN1"W.H\[I3&J.2;A0CO3$/?A
MITU>V 7E0\$BL$GX4&QJ)D;[@,/^8=<4 Q2HNT1A33!;A98^($\%L35MY04R
M1MG$JL>C=\#L(G=5%O*A* L#)B)DL?"HZ#@LZ:\#;W7SVD5+73]>&]54T%\?
MC#=SKBY3XF3-H_!''FJ?,0](3!7OJ/ X+/$'G[*5+U,F!;LZC*-8)-RFX>($
M)<0AXL)2G(BI(AZ%'8>5_6.=Z4HA([^K,!U7C)T)<2$TC81-Q$5AAMD$CU'4
M<5C5/76F+2T[JFTO0U=1N8C &PO=V]R:W-H965T D:=6LYCQ-;:>G"HPE2!DBL^TY0IW@RRAA_S\$G14:H91TZ>_GD G"0W34=)%[C%#*#U3->"AXL/AFOQ\YC<"R9//'G=3O\\J
M@DD'SS]J&$HB"]='*>"NE?HR;F?;7FWN.I3._,+V<*X1.P2%*(K4AJ7KNL4!K.Z5 3KDSR@*33U0
MT@VUT\V!2^,VWW1H"4C$3)E)<*'';KL
]2K?,+NQ)S0]QV6&*DV#>
M7UV?7!C0:* JD8Y'"'ZG*LF4\ZSQSZ&I.,$ [%94T@?ORH0D7@PT&J2C)#).
M26UHGNUUU7"
R[M??,T/N:B7+KM,[
M')#8^T+.^SPSP_7+I?/7H5(JBIO:V/!JKXJQ^?[P,!25JF48NT99O)DY7\N(
M6S\_#(U7LN1-M3F<'!T].:REMGNO7_*S2__ZI6NCT59=>A':NI9^=:Z,6[[:
M.][K'GS2\RK2@\/7+QLY5U1ZS[A'GT^2 >0XXJUI;X7
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MT=3IF6,??H#0=Y/(-SL?DL3UTJE9!Y#X;C2)S#J$.'4G<6S6$4Q\-TVF#F5
M5\E*HP0_#-PP#)T'H5D);9USE8FVUICWU!JV[8[KQ#^%* Q=+PZ<:U3J#*ZJ
MIC6&G,PE$MN3R=3U)@&<]G =@EB6OF-E 0)I'K^5X/L&BE).QG%D2!:%E/
MBCF)33P"O!9U,:0PU1N@I@Z).XU2QW"\?O4>'[.RS1$^A,DHI78N2W,S49&I
MLWG55B\SI4MW1T#QHL;LK
M!D(."2!$^^+ -N!L: ]!@Z3+H>B!ED:V$(ET22I._[Y#2E9=( F0"\D9SKSW
MAN)0\[V03VJ+J.&E:[E:N%NM=Q>^K\HM=DR=BQURVJF%[)@F4VY\M9/(*IO4
MM7X4!)G?L8:[R[GUW
#VB*ZX
MT86VJB"RJ-H/0%
_OJ?M[Z'=6:#'\=)832_DZ4"$\R["N8]POB?"CY6K#:@H(5ZL)W)@.I6DG;W+=NM6M^8__F
M/ZQ/J"DV/>P?3=-19TP7G)Z0P)PH20+ITDV7:B96U?ZA+Y6EMN&')35VU.X
M[>=*V