Stock-Based Compensation

6 Months Ended

Jul. 29, 2023

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Stock-Based Compensation

Note 4 - Stock-Based Compensation

On June 20, 2023, our shareholders approved the Shoe Carnival, Inc. Amended and Restated 2017 Equity Incentive Plan (the “Amended 2017 Plan”), which amended and restated the Shoe Carnival, Inc. 2017 Equity Incentive Plan. Among other changes approved by our shareholders, the Amended 2017 Plan increased the number of shares of our common stock that are available for issuance under the plan by 1.8 million additional shares. As of July 29, 2023, 1,858,000 shares were available for issuance under the Amended 2017 Plan, assuming that all unmeasured but outstanding performance stock units vest at the maximum level of performance.

Stock-based compensation includes share-settled awards issued pursuant to the Amended 2017 Plan in the form of restricted stock units, performance stock units, and restricted and other stock awards. Additionally, we recognize stock-based compensation expense for the discount on shares sold to employees through our Employee Stock Purchase Plan and for cash-settled stock appreciation rights. For the thirteen and twenty-six weeks ended July 29, 2023 and July 30, 2022, stock-based compensation expense was comprised of the following:

(In thousands)	Thirteen Weeks Ended  July 29, 2023			Thirteen Weeks Ended  July 30, 2022			Twenty-six Weeks Ended  July 29, 2023			Twenty-six Weeks Ended  July 30, 2022
Share-settled equity awards	$	1,098		$	1,530		$	2,324		$	2,885
Stock appreciation rights		10			(38	)		(17	)		(161	)
Employee stock purchase plan		9			9			19			17
Total stock-based compensation expense	$	1,117		$	1,501		$	2,326		$	2,741
Income tax effect at statutory rates	$	(249	)	$	(385	)	$	(522	)	$	(678	)
Additional income tax benefit on vesting of share-settled awards	$	5		$	(26	)	$	(616	)	$	(521	)

As of July 29, 2023, approximately $8.4 million of unrecognized compensation expense remained related to our share-settled equity awards. The cost is expected to be recognized over a weighted average period of approximately 2.1 years.

Share-Settled Equity Awards

The following table summarizes transactions for our restricted stock units and performance stock units:

	Number of Shares			Weighted- Average Grant Date Fair Value
Outstanding at January 28, 2023		560,323		$	23.27
Granted		370,653			24.98
Vested		(282,927	)		16.83
Forfeited		(36,526	)		30.09
Outstanding at July 29, 2023		611,523		$	26.87

The total fair value at grant date of restricted stock units and performance stock units that vested during the twenty-six weeks ended July 29, 2023 and July 30, 2022 was $4.8 million and $3.2 million, respectively. The weighted-average grant date fair value of restricted stock units and performance stock units granted during the twenty-six weeks ended July 30, 2022 was $30.32.

The following table summarizes transactions for our restricted stock and other stock awards:

	Number of Shares		Weighted- Average Grant Date Fair Value
Outstanding at January 28, 2023		0	$	0.00
Granted		21,462		21.90
Vested		0		0.00
Forfeited		0		0.00
Outstanding at July 29, 2023		21,462	$	21.90

No restricted stock and other stock awards vested during the twenty-six weeks ended July 29, 2023 or July 30, 2022. The weighted-average grant date fair value of restricted stock and other stock awards granted during the twenty-six weeks ended July 30, 2022 was $24.12.