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 | ||||||||
For the transition period from __________ to __________ | ||||||||
Commission file number: |
(State or other jurisdiction of incorporation or | (I.R.S. Employer Identification No.) | ||||||||||||||||
organization) | |||||||||||||||||
| |||||||||||||||||
(Address of principal executive offices) | (Zip Code) | ||||||||||||||||
Registrant’s telephone number, including area code | |||||||||||||||||
Former name, former address and former | N/A | ||||||||||||||||
fiscal year, if changed since last report. |
Title of each class | Trading symbol | Name of each exchange on which registered | |||||||||||||||
| par value $.01 |
Page | ||||||||||||||
Item 1. | ||||||||||||||
Condensed Consolidated Statements of Operations–Three and six months ended July 31, 2021 and August 1, 2020 | ||||||||||||||
Condensed Consolidated Statements of Comprehensive Income (Loss)–Three and six months ended July 31, 2021 and August 1, 2020 | ||||||||||||||
Condensed Consolidated Balance Sheets–July 31, 2021, January 30, 2021, and August 1, 2020 | ||||||||||||||
Condensed Consolidated Statements of Stockholders’ Equity–Six months ended July 31, 2021 and August 1, 2020 | ||||||||||||||
Condensed Consolidated Statements of Cash Flows–Six months ended July 31, 2021 and August 1, 2020 | ||||||||||||||
Item 2. | ||||||||||||||
Item 3. | ||||||||||||||
Item 4. | ||||||||||||||
Item 1. | ||||||||||||||
Item 1A. | ||||||||||||||
Item 2. | ||||||||||||||
Item 6. | ||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
($000, except stores and per share data, unaudited) | July 31, 2021 | August 1, 2020 | July 31, 2021 | August 1, 2020 | |||||||||||||||||||
Sales | $ | $ | $ | $ | |||||||||||||||||||
Costs and Expenses | |||||||||||||||||||||||
Cost of goods sold | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Total costs and expenses | |||||||||||||||||||||||
Earnings (loss) before taxes | ( | ||||||||||||||||||||||
Provision (benefit) for taxes on earnings (loss) | ( | ||||||||||||||||||||||
Net earnings (loss) | $ | $ | $ | $ | ( | ||||||||||||||||||
Earnings (loss) per share | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | ( | ||||||||||||||||||
Diluted | $ | $ | $ | $ | ( | ||||||||||||||||||
Weighted-average shares outstanding (000) | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Store count at end of period | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
($000, unaudited) | July 31, 2021 | August 1, 2020 | July 31, 2021 | August 1, 2020 | |||||||||||||||||||
Net earnings (loss) | $ | $ | $ | $ | ( | ||||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||
Comprehensive income (loss) | $ | $ | $ | $ | ( |
($000, except share data, unaudited) | July 31, 2021 | January 30, 2021 | August 1, 2020 | ||||||||||||||
Assets | |||||||||||||||||
Current Assets | |||||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Accounts receivable | |||||||||||||||||
Merchandise inventory | |||||||||||||||||
Prepaid expenses and other | |||||||||||||||||
Total current assets | |||||||||||||||||
Property and Equipment | |||||||||||||||||
Land and buildings | |||||||||||||||||
Fixtures and equipment | |||||||||||||||||
Leasehold improvements | |||||||||||||||||
Construction-in-progress | |||||||||||||||||
Less accumulated depreciation and amortization | |||||||||||||||||
Property and equipment, net | |||||||||||||||||
Operating lease assets | |||||||||||||||||
Other long-term assets | |||||||||||||||||
Total assets | $ | $ | $ | ||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||
Current Liabilities | |||||||||||||||||
Accounts payable | $ | $ | $ | ||||||||||||||
Accrued expenses and other | |||||||||||||||||
Current operating lease liabilities | |||||||||||||||||
Accrued payroll and benefits | |||||||||||||||||
Income taxes payable | |||||||||||||||||
Short-term debt | |||||||||||||||||
Current portion of long-term debt | |||||||||||||||||
Total current liabilities | |||||||||||||||||
Long-term debt | |||||||||||||||||
Non-current operating lease liabilities | |||||||||||||||||
Other long-term liabilities | |||||||||||||||||
Deferred income taxes | |||||||||||||||||
Commitments and contingencies | |||||||||||||||||
Stockholders’ Equity | |||||||||||||||||
Common stock, par value $ Authorized Issued and outstanding and | |||||||||||||||||
Additional paid-in capital | |||||||||||||||||
Treasury stock | ( | ( | ( | ||||||||||||||
Retained earnings | |||||||||||||||||
Total stockholders’ equity | |||||||||||||||||
Total liabilities and stockholders’ equity | $ | $ | $ |
Six Months Ended July 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Additional paid-in capital | ||||||||||||||||||||||||||||||||||||||
Common stock | Treasury stock | Retained earnings | ||||||||||||||||||||||||||||||||||||
(000) | Shares | Amount | Total | |||||||||||||||||||||||||||||||||||
Balance at January 30, 2021 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | ||||||||||||||||||||||||||||||||||
Common stock issued under stock | ||||||||||||||||||||||||||||||||||||||
plans, net of shares | ||||||||||||||||||||||||||||||||||||||
used for tax withholding | ( | — | ( | |||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Balance at May 1, 2021 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | ||||||||||||||||||||||||||||||||||
Common stock issued under stock | ||||||||||||||||||||||||||||||||||||||
plans, net of shares | ||||||||||||||||||||||||||||||||||||||
used for tax withholding | — | ( | — | |||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Common stock repurchased | ( | ( | ( | — | ( | ( | ||||||||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Balance at July 31, 2021 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Six Months Ended August 1, 2020 | ||||||||||||||||||||||||||||||||||||||
Additional paid-in capital | ||||||||||||||||||||||||||||||||||||||
Common stock | Treasury stock | Retained earnings | ||||||||||||||||||||||||||||||||||||
(000) | Shares | Amount | Total | |||||||||||||||||||||||||||||||||||
Balance at February 1, 2020 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Common stock issued under stock | ||||||||||||||||||||||||||||||||||||||
plans, net of shares | ||||||||||||||||||||||||||||||||||||||
used for tax withholding | ( | — | ( | |||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Common stock repurchased | ( | ( | ( | — | ( | ( | ||||||||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Balance at May 2, 2020 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | ||||||||||||||||||||||||||||||||||
Common stock issued under stock | ||||||||||||||||||||||||||||||||||||||
plans, net of shares | ||||||||||||||||||||||||||||||||||||||
used for tax withholding | ( | — | ||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance at August 1, 2020 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements. |
Six Months Ended | |||||||||||
($000, unaudited) | July 31, 2021 | August 1, 2020 | |||||||||
Cash Flows From Operating Activities | |||||||||||
Net earnings (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation | |||||||||||
Deferred income taxes | |||||||||||
Change in assets and liabilities: | |||||||||||
Merchandise inventory | ( | ||||||||||
Other current assets | ( | ( | |||||||||
Accounts payable | ( | ||||||||||
Other current liabilities | ( | ||||||||||
Income taxes | ( | ( | |||||||||
Operating lease assets and liabilities, net | |||||||||||
Other long-term, net | |||||||||||
Net cash provided by operating activities | |||||||||||
Cash Flows From Investing Activities | |||||||||||
Additions to property and equipment | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash Flows From Financing Activities | |||||||||||
Issuance of common stock related to stock plans | |||||||||||
Treasury stock purchased | ( | ( | |||||||||
Repurchase of common stock | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Net proceeds from issuance of short-term debt | |||||||||||
Payments of short-term debt | ( | ||||||||||
Net proceeds from issuance of long-term debt | |||||||||||
Payments of debt issuance costs | ( | ||||||||||
Net cash (used in) provided by financing activities | ( | ||||||||||
Net increase in cash, cash equivalents, and restricted cash and cash equivalents | |||||||||||
Cash, cash equivalents, and restricted cash and cash equivalents: | |||||||||||
Beginning of period | |||||||||||
End of period | $ | $ | |||||||||
Supplemental Cash Flow Disclosures | |||||||||||
Interest paid | $ | $ | |||||||||
Income taxes paid | $ | $ | |||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
July 31, 2021 | August 1, 2020 | 1 | July 31, 2021 | August 1, 2020 | 1 | |||||||||||||||||||||
Ladies | % | % | % | % | ||||||||||||||||||||||
Home Accents and Bed and Bath | % | % | % | % | ||||||||||||||||||||||
Men’s | % | % | % | % | ||||||||||||||||||||||
Accessories, Lingerie, Fine Jewelry, and Cosmetics | % | % | % | % | ||||||||||||||||||||||
Shoes | % | % | % | % | ||||||||||||||||||||||
Children’s | % | % | % | % | ||||||||||||||||||||||
Total | % | % | % | % | ||||||||||||||||||||||
1 Sales mix for the three and six month periods ended August 1, 2020 represents sales for the period the stores were open. |
($000) | July 31, 2021 | January 30, 2021 | August 1, 2020 | ||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Restricted cash and cash equivalents included in: | |||||||||||||||||
Prepaid expenses and other | |||||||||||||||||
Other long-term assets | |||||||||||||||||
Total restricted cash and cash equivalents | |||||||||||||||||
Total cash and cash equivalents, and restricted cash and cash equivalents | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
($000) | July 31, 2021 | August 1, 2020 | July 31, 2021 | August 1, 2020 | |||||||||||||||||||
Operating lease assets obtained in exchange for new operating lease liabilities | $ | $ | $ | $ |
($000) | July 31, 2021 | January 30, 2021 | August 1, 2020 | |||||||||||||||||
Cash and cash equivalents (Level 1) | $ | $ | $ | |||||||||||||||||
Restricted cash and cash equivalents (Level 1) | $ | $ | $ | |||||||||||||||||
Investments (Level 2) | $ | $ | $ | |||||||||||||||||
($000) | July 31, 2021 | January 30, 2021 | August 1, 2020 | ||||||||||||||
Level 1 | $ | $ | $ | ||||||||||||||
Level 2 | |||||||||||||||||
Total | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
($000) | July 31, 2021 | August 1, 2020 | July 31, 2021 | August 1, 2020 | |||||||||||||||||||
Restricted stock | $ | $ | $ | $ | |||||||||||||||||||
Performance awards | |||||||||||||||||||||||
Employee stock purchase plan | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
Statements of Operations Classification ($000) | July 31, 2021 | August 1, 2020 | July 31, 2021 | August 1, 2020 | |||||||||||||||||||
Cost of goods sold | $ | $ | $ | $ | |||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
(000, except per share data) | Number of shares | Weighted-average grant date fair value | |||||||||
Unvested at January 30, 2021 | $ | ||||||||||
Awarded | |||||||||||
Released | ( | ||||||||||
Forfeited | ( | ||||||||||
Unvested at July 31, 2021 | $ |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
Shares in (000s) | Basic EPS | Effect of dilutive common stock equivalents | Diluted EPS | Basic EPS | Effect of dilutive common stock equivalents | Diluted EPS | ||||||||||||||||||||||||||||||||
July 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||||||||||
Amount | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
August 1, 2020 | ||||||||||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||||||||||
Amount | $ | $ | $ | $ | ( | $ | $ | ( |
($000) | July 31, 2021 | January 30, 2021 | August 1, 2020 | |||||||||||||||||
$ | $ | $ | $ | |||||||||||||||||
Other short-term debt financing | ||||||||||||||||||||
Total short-term debt | $ | $ | $ | |||||||||||||||||
$ | $ | $ | ||||||||||||||||||
Total long-term debt | $ | $ | $ | |||||||||||||||||
Less: current portion | ||||||||||||||||||||
Total due beyond one year | $ | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
($000) | July 31, 2021 | August 1, 2020 | July 31, 2021 | August 1, 2020 | ||||||||||||||||||||||
Interest expense on long-term debt | $ | $ | $ | |||||||||||||||||||||||
Interest expense on short-term debt | ||||||||||||||||||||||||||
Other interest expense | ||||||||||||||||||||||||||
Capitalized interest | ( | ( | ( | ( | ||||||||||||||||||||||
Interest income | ( | ( | ( | ( | ||||||||||||||||||||||
Interest expense, net | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
July 31, 2021 | August 1, 2020 | August 3, 2019 | July 31, 2021 | August 1, 2020 | August 3, 2019 | |||||||||||||||||||||||||||||||||
Sales | ||||||||||||||||||||||||||||||||||||||
Sales (millions) | $ | 4,805 | $ | 2,685 | $ | 3,980 | $ | 9,321 | $ | 4,527 | $ | 7,777 | ||||||||||||||||||||||||||
Comparable store sales growth (decline) | 15.0 | % | 1 | (12 | %) | 2 | 3 | % | 3 | 14.0 | % | 1 | n/a | 4 | 2 | % | 3 | |||||||||||||||||||||
Costs and expenses (as a percent of sales) | ||||||||||||||||||||||||||||||||||||||
Cost of goods sold | 71.0 | % | 77.4 | % | 71.4 | % | 70.9 | % | 87.7 | % | 71.3 | % | ||||||||||||||||||||||||||
Selling, general and administrative | 14.9 | % | 19.4 | % | 14.9 | % | 14.9 | % | 20.6 | % | 14.8 | % | ||||||||||||||||||||||||||
Interest expense (income), net | 0.4 | % | 1.1 | % | (0.1 | %) | 0.4 | % | 0.8 | % | (0.1 | %) | ||||||||||||||||||||||||||
Earnings (loss) before taxes (as a percent of sales) | 13.7 | % | 2.1 | % | 13.8 | % | 13.8 | % | (9.1 | %) | 14.0 | % | ||||||||||||||||||||||||||
Net earnings (loss) (as a percent of sales) | 10.3 | % | 0.8 | % | 10.4 | % | 10.4 | % | (6.3 | %) | 10.7 | % | ||||||||||||||||||||||||||
1 Amount shown is for fiscal 2021 compared to fiscal 2019. Comparable store sales for this purpose represents sales from stores that were open at the end of fiscal 2018, plus new stores opened in fiscal 2019, less stores closed in fiscal 2019 and fiscal 2020. | ||||||||||||||||||||||||||||||||||||||
2 For three months ended August 1, 2020, comparable store sales represents sales from reopened stores from the date of the store reopening through the end of the quarter. | ||||||||||||||||||||||||||||||||||||||
3 Amount shown is for the three and six month periods of fiscal 2019 compared to the same periods of fiscal 2018 for stores that have been open for more than 14 complete months. | ||||||||||||||||||||||||||||||||||||||
4 Given that stores were open for less than seven weeks of the 13-week period ended May 2, 2020, the comparable store sales metric for the six months ended August 1, 2020, is not meaningful. |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
Store Count | July 31, 2021 | August 1, 2020 | August 3, 2019 | July 31, 2021 | August 1, 2020 | August 3, 2019 | |||||||||||||||||||||||||||||
Beginning of the period | 1,866 | 1,832 | 1,745 | 1,859 | 1,805 | 1,717 | |||||||||||||||||||||||||||||
Opened in the period | 30 | — | 28 | 37 | 27 | 56 | |||||||||||||||||||||||||||||
Closed in the period | — | — | (1) | — | — | (1) | |||||||||||||||||||||||||||||
End of the period | 1,896 | 1,832 | 1,772 | 1,896 | 1,832 | 1,772 | |||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
July 31, 2021 | August 1, 2020 | 1 | August 3, 2019 | July 31, 2021 | August 1, 2020 | 1 | August 3, 2019 | ||||||||||||||||||||||||||||
Ladies | 27 | % | 25 | % | 27 | % | 25 | % | 25 | % | 27 | % | |||||||||||||||||||||||
Home Accents and Bed and Bath | 24 | % | 25 | % | 23 | % | 25 | % | 26 | % | 24 | % | |||||||||||||||||||||||
Men’s | 15 | % | 14 | % | 15 | % | 14 | % | 13 | % | 14 | % | |||||||||||||||||||||||
Accessories, Lingerie, Fine Jewelry, and Cosmetics | 14 | % | 13 | % | 13 | % | 14 | % | 13 | % | 13 | % | |||||||||||||||||||||||
Shoes | 12 | % | 14 | % | 14 | % | 13 | % | 14 | % | 14 | % | |||||||||||||||||||||||
Children’s | 8 | % | 9 | % | 8 | % | 9 | % | 9 | % | 8 | % | |||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||
1 Sales mix for the three and six month periods ended August 1, 2020 represents sales for the period the stores were open. |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
($000) | July 31, 2021 | August 1, 2020 | August 3, 2019 | July 31, 2021 | August 1, 2020 | August 3, 2019 | |||||||||||||||||||||||||||||
Interest expense on long-term debt | $ | 22,205 | $ | 28,331 | $ | 3,283 | $ | 44,399 | $ | 38,512 | $ | 6,566 | |||||||||||||||||||||||
Interest expense on short-term debt | — | 3,599 | — | — | 5,296 | — | |||||||||||||||||||||||||||||
Other interest expense | 291 | 1,031 | 227 | 621 | 1,309 | 540 | |||||||||||||||||||||||||||||
Capitalized interest | (3,590) | (3,349) | (1,118) | (6,829) | (5,503) | (1,883) | |||||||||||||||||||||||||||||
Interest income | (199) | (757) | (7,174) | (435) | (4,093) | (15,640) | |||||||||||||||||||||||||||||
Interest expense (income), net | $ | 18,707 | $ | 28,855 | $ | (4,782) | $ | 37,756 | $ | 35,521 | $ | (10,417) |
Six Months Ended | |||||||||||||||||
($000) | July 31, 2021 | August 1, 2020 | August 3, 2019 | ||||||||||||||
Cash provided by operating activities | $ | 1,345,395 | $ | 172,421 | $ | 1,083,463 | |||||||||||
Cash used in investing activities | (254,437) | (250,047) | (249,797) | ||||||||||||||
Cash (used in) provided by financing activities | (415,649) | 2,520,131 | (868,344) | ||||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents | $ | 675,309 | $ | 2,442,505 | $ | (34,678) |
($000) | Less than one year | 1 - 3 years | 3 - 5 years | After 5 years | Total¹ | ||||||||||||||||||||||||
Recorded contractual obligations: | |||||||||||||||||||||||||||||
Senior notes | $ | 65,000 | $ | — | $ | 1,450,000 | $ | 1,024,991 | $ | 2,539,991 | |||||||||||||||||||
Operating leases | 632,272 | 1,181,171 | 762,254 | 561,088 | 3,136,785 | ||||||||||||||||||||||||
New York buying office ground lease2 | 5,939 | 14,178 | 14,178 | 936,893 | 971,188 | ||||||||||||||||||||||||
Unrecorded contractual obligations: | |||||||||||||||||||||||||||||
Real estate obligations3 | 8,449 | 41,514 | 42,808 | 122,404 | 215,175 | ||||||||||||||||||||||||
Interest payment obligations | 82,438 | 160,631 | 115,775 | 279,202 | 638,046 | ||||||||||||||||||||||||
Purchase obligations4 | 5,508,699 | 13,528 | 897 | — | 5,523,124 | ||||||||||||||||||||||||
Total contractual obligations | $ | 6,302,797 | $ | 1,411,022 | $ | 2,385,912 | $ | 2,924,578 | $ | 13,024,309 | |||||||||||||||||||
1 We have a $73.1 million liability for unrecognized tax benefits that is included in Other long-term liabilities on our interim Condensed Consolidated Balance Sheet. This liability is excluded from the schedule above as the timing of payments cannot be reasonably estimated. | |||||||||||||||||||||||||||||
2 Our New York buying office building is subject to a 99-year ground lease. | |||||||||||||||||||||||||||||
3 Minimum lease payments for leases signed that have not yet commenced. | |||||||||||||||||||||||||||||
4 Purchase obligations primarily consist of merchandise inventory purchase orders, commitments related to construction projects, store fixtures and supplies, and information technology services, transportation, and maintenance contracts. |
Total number of shares (or units) purchased1 | Average price paid per share (or unit) | Total number of shares (or units) purchased as part of publicly announced plans or programs | Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs ($000)2 | ||||||||||||||||||||
Period | |||||||||||||||||||||||
May | |||||||||||||||||||||||
(5/2/2021 - 5/29/2021) | 292 | $123.87 | — | $ | 1,500,000 | ||||||||||||||||||
June | |||||||||||||||||||||||
(5/30/2021 - 7/03/2021) | 826,304 | $120.67 | 812,969 | $ | 1,401,888 | ||||||||||||||||||
July | |||||||||||||||||||||||
(7/04/2021 - 7/31/2021) | 635,613 | $122.20 | 635,613 | $ | 1,324,216 | ||||||||||||||||||
Total | 1,462,209 | $121.34 | 1,448,582 | $ | 1,324,216 |
Exhibit | |||||
Number | Exhibit | ||||
3.1 | |||||
3.2 | |||||
10.1 | |||||
15 | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101.INS | XBRL Instance Document. (The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.) | ||||
101.SCH | Inline XBRL Taxonomy Extension Schema | ||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase | ||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase | ||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase | ||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase | ||||
104 | Cover Page Interactive Data File. (The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.) |
ROSS STORES, INC. | |||||||||||
(Registrant) | |||||||||||
Date: | September 8, 2021 | By: | /s/Michael J. Hartshorn | ||||||||
Michael J. Hartshorn | |||||||||||
Group President, Chief Operating Officer (interim principal financial officer) |
Participant: | [•] | Employee ID: [•] | Award/Grant #: [•] | |||||||||||
Grant Date: | [•] | |||||||||||||
Target Number of Performance Shares: | [•], subject to adjustment as provided by the Agreement. | |||||||||||||
Maximum Number of Performance Shares: | 200% of the Target Number of Performance Shares. | |||||||||||||
Fiscal Year 2021 Performance Goal Achievement | The determination of Vested Performance Shares under this award will be determined based on a 50/50 weighting of the levels of achievement of: (1) the full-year target for adjusted pre-tax profit* as stated below (quantitative measure); and (2) 2021 Key Business Priorities (qualitative measure) as assessed by the Committee. | |||||||||||||
*Adjusted Pre-Tax Profit Target (50% of performance goal achievement) | $[•] | |||||||||||||
Performance Period: | Company fiscal year beginning [•] and ending [•]. | |||||||||||||
Performance Share Vesting Date: | [•], except as provided by the Agreement. | |||||||||||||
Vested Performance Shares: | Provided that the Participant’s Service has not terminated prior to the Performance Share Vesting Date, except as provided by the Agreement, on the Performance Share Vesting Date the number of Vested Performance Shares (not to exceed the Maximum Number of Performance Shares) shall be determined by multiplying the Target Number of Performance Shares by the following formula: the Adjusted Pre-tax Profit Multiplier (as defined by the Agreement) multiplied by 0.5, plus the achievement percentage level of the 2021 Key Business Priorities (as determined by the Committee) multiplied by 0.5. | |||||||||||||
Settlement Date: | The Performance Share Vesting Date, except as otherwise provided by the Agreement. | |||||||||||||
Vested Common Shares: | Except as provided by the Agreement and provided that the Participant’s Service has not terminated prior to the relevant date, the number of Vested Common Shares shall cumulatively increase on each respective date set forth below by the Vested Percentage set forth opposite such date, multiplied by the actual number of Vested Performance Shares, as follows: | |||||||||||||
Common Share Vesting Date | Vested Percentage | |||||||||||||
Settlement Date | 30% | |||||||||||||
[•] | 30% | |||||||||||||
[•] | 40% | |||||||||||||
Employment Agreement: | Executive Employment Agreement between the Company and the Participant, as in effect at any applicable time. |
By your electronic acceptance, you agree that this Award is granted under and governed by the terms of the Plan, as amended, and the Agreement, all of which are made a part of this document. |
Date: | September 8, 2021 | /s/Barbara Rentler | ||||||
Barbara Rentler | ||||||||
Chief Executive Officer |
Date: | September 8, 2021 | /s/Michael J. Hartshorn | ||||||
Michael J. Hartshorn | ||||||||
Group President, Chief Operating Officer | ||||||||
(interim principal financial officer) |
Date: | September 8, 2021 | /s/Barbara Rentler | ||||||
Barbara Rentler | ||||||||
Chief Executive Officer |
Date: | September 8, 2021 | /s/Michael J. Hartshorn | ||||||
Michael J. Hartshorn | ||||||||
Group President, Chief Operating Officer | ||||||||
(interim principal financial officer) |
Condensed Consolidated Statements of Operations shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2021
USD ($)
number_of_store
$ / shares
shares
|
Aug. 01, 2020
USD ($)
number_of_store
$ / shares
shares
|
Jul. 31, 2021
USD ($)
number_of_store
$ / shares
shares
|
Aug. 01, 2020
USD ($)
number_of_store
$ / shares
shares
|
|
Income Statement [Abstract] | ||||
Sales | $ 4,804,974 | $ 2,684,712 | $ 9,321,054 | $ 4,527,385 |
Costs and Expenses | ||||
Cost of goods sold | 3,410,871 | 2,080,120 | 6,609,267 | 3,970,111 |
Selling, general and administrative | 717,788 | 519,495 | 1,392,841 | 934,800 |
Interest expense, net | 18,707 | 28,855 | 37,756 | 35,521 |
Total costs and expenses | 4,147,366 | 2,628,470 | 8,039,864 | 4,940,432 |
Earnings (loss) before taxes | 657,608 | 56,242 | 1,281,190 | (413,047) |
Provision (benefit) for taxes on earnings (loss) | 163,350 | 34,195 | 310,453 | (129,252) |
Net earnings (loss) | $ 494,258 | $ 22,047 | $ 970,737 | $ (283,795) |
Earnings (loss) per share | ||||
Basic (in dollars per share) | $ / shares | $ 1.40 | $ 0.06 | $ 2.75 | $ (0.81) |
Diluted (in dollars per share) | $ / shares | $ 1.39 | $ 0.06 | $ 2.73 | $ (0.81) |
Weighted-average shares outstanding (000) | ||||
Basic (in shares) | shares | 352,865 | 352,276 | 352,927 | 352,239 |
Diluted (in shares) | shares | 354,935 | 354,232 | 355,161 | 352,239 |
Store count at end of period (in number of stores) | number_of_store | 1,896 | 1,832 | 1,896 | 1,832 |
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2021 |
Aug. 01, 2020 |
Jul. 31, 2021 |
Aug. 01, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 494,258 | $ 22,047 | $ 970,737 | $ (283,795) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | $ 494,258 | $ 22,047 | $ 970,737 | $ (283,795) |
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands |
Jul. 31, 2021 |
Jan. 30, 2021 |
Aug. 01, 2020 |
---|---|---|---|
Current Assets | |||
Cash and cash equivalents | $ 5,569,071 | $ 4,819,293 | $ 3,793,043 |
Accounts receivable | 159,163 | 115,067 | 162,723 |
Merchandise inventory | 1,751,027 | 1,508,982 | 1,117,983 |
Prepaid expenses and other | 193,588 | 249,149 | 273,612 |
Total current assets | 7,672,849 | 6,692,491 | 5,347,361 |
Property and Equipment | |||
Land and buildings | 1,189,666 | 1,187,045 | 1,177,863 |
Fixtures and equipment | 3,295,078 | 3,243,206 | 3,137,495 |
Leasehold improvements | 1,280,505 | 1,278,134 | 1,241,819 |
Construction-in-progress | 493,629 | 376,076 | 363,000 |
Property and equipment, gross | 6,258,878 | 6,084,461 | 5,920,177 |
Less accumulated depreciation and amortization | 3,512,670 | 3,373,965 | 3,214,072 |
Property and equipment, net | 2,746,208 | 2,710,496 | 2,706,105 |
Operating lease assets | 2,973,907 | 3,084,819 | 3,053,735 |
Other long-term assets | 248,436 | 230,061 | 215,044 |
Total assets | 13,641,400 | 12,717,867 | 11,322,245 |
Current Liabilities | |||
Accounts payable | 2,588,551 | 2,256,928 | 1,009,704 |
Accrued expenses and other | 609,719 | 592,122 | 557,475 |
Current operating lease liabilities | 608,123 | 598,120 | 579,277 |
Accrued payroll and benefits | 445,307 | 400,273 | 204,109 |
Income taxes payable | 19,526 | 54,680 | 0 |
Short-term debt | 0 | 0 | 802,507 |
Current portion of long-term debt | 64,964 | 64,910 | 0 |
Total current liabilities | 4,336,190 | 3,967,033 | 3,153,072 |
Long-term debt | 2,450,245 | 2,448,175 | 2,286,295 |
Non-current operating lease liabilities | 2,503,332 | 2,621,594 | 2,601,254 |
Other long-term liabilities | 292,715 | 268,558 | 258,869 |
Deferred income taxes | 154,932 | 121,867 | 155,556 |
Commitments and contingencies | |||
Stockholders’ Equity | |||
Common stock, par value $.01 per share Authorized 1,000,000,000 shares Issued and outstanding 355,698,000, 356,503,000 and 356,006,000 shares, respectively | 3,557 | 3,565 | 3,560 |
Additional paid-in capital | 1,645,118 | 1,579,824 | 1,512,699 |
Treasury stock | (527,565) | (478,550) | (465,674) |
Retained earnings | 2,782,876 | 2,185,801 | 1,816,614 |
Total stockholders’ equity | 3,903,986 | 3,290,640 | 2,867,199 |
Total liabilities and stockholders’ equity | $ 13,641,400 | $ 12,717,867 | $ 11,322,245 |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jul. 31, 2021 |
Jan. 30, 2021 |
Aug. 01, 2020 |
---|---|---|---|
Statement of Financial Position [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 355,698,000 | 356,503,000 | 356,006,000 |
Common stock, shares outstanding (in shares) | 355,698,000 | 356,503,000 | 356,006,000 |
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
1 Months Ended | 3 Months Ended | ||||
---|---|---|---|---|---|---|
Mar. 02, 2021 |
May 31, 2021 |
Mar. 31, 2020 |
Jul. 31, 2021 |
May 01, 2021 |
May 02, 2020 |
|
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends declared (in dollars per share) | $ 0.285 | $ 0.285 | $ 0.285 | $ 0.285 | $ 0.285 | $ 0.285 |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of presentation. The accompanying unaudited interim condensed consolidated financial statements have been prepared from the records of Ross Stores, Inc. and subsidiaries (the “Company”) without audit and, in the opinion of management, include all adjustments (consisting of only normal, recurring adjustments) necessary to present fairly the Company’s financial position as of July 31, 2021 and August 1, 2020, the results of operations, comprehensive income (loss), and stockholders’ equity for the three and six month periods ended July 31, 2021 and August 1, 2020, and cash flows for the six month periods ended July 31, 2021 and August 1, 2020. The Condensed Consolidated Balance Sheet as of January 30, 2021, presented herein, has been derived from the Company’s audited consolidated financial statements for the fiscal year then ended. Certain information and disclosures normally included in the notes to annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted for purposes of these interim condensed consolidated financial statements. The interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including notes thereto, contained in the Company’s Annual Report on Form 10-K for the year ended January 30, 2021. The results of operations, comprehensive income (loss), and stockholders’ equity for the three and six month periods ended July 31, 2021 and August 1, 2020, and cash flows for the six month periods ended July 31, 2021 and August 1, 2020 presented herein are not necessarily indicative of the results to be expected for the full fiscal year. Use of accounting estimates. The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company’s significant accounting estimates include valuation reserves for inventory, packaway and other inventory carrying costs, useful lives of fixed assets, insurance reserves, reserves for uncertain tax positions, employee retention credits under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), and legal claims. The ongoing uncertainties and potential impacts from the COVID-19 pandemic increase the challenge of making these estimates; actual results could differ materially from the Company’s estimates. Revenue recognition. The following sales mix table disaggregates revenue by merchandise category for the three and six month periods ended July 31, 2021 and August 1, 2020:
Cash, restricted cash, and restricted investments. Restricted cash, cash equivalents, and investments serve as collateral for certain insurance and trade payable obligations of the Company. These restricted funds are invested in bank deposits, money market mutual funds, U.S. Government and agency securities, and corporate securities and cannot be withdrawn from the Company’s account without the prior written consent of the secured parties. The classification between current and long-term is based on the timing of expected payments of the obligations. The following table provides a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents in the Condensed Consolidated Balance Sheets that reconcile to the amounts shown on the Condensed Consolidated Statements of Cash Flows:
Property and equipment. As of July 31, 2021 and August 1, 2020, the Company had $11.7 million and $22.6 million, respectively, of property and equipment purchased but not yet paid. These purchases are included in Property and equipment, Accounts payable, and Accrued expenses and other in the accompanying Condensed Consolidated Balance Sheets. Operating leases. In response to the COVID-19 pandemic, the Financial Accounting Standards Board (“FASB”) provided relief under Accounting Standards Update (“ASU”) 2016-02, Leases (Accounting Standards Codification “ASC” 842). Under this relief, companies can make a policy election on how to treat lease concessions resulting directly from the COVID-19 pandemic, provided that the modified contracts result in total cash flows that are substantially the same or less than the cash flows in the original contract. The Company made the policy election to account for lease concessions that result from the COVID-19 pandemic as if they were made under enforceable rights in the original contract. Additionally, the Company made the policy election to account for these concessions outside of the lease modification framework described under ASC 842. The Company recorded accruals for deferred rental payments and recognized rent abatements or concessions as variable lease costs in the periods incurred. Accruals for rent payment deferrals are included in Accrued expenses and other in the accompanying Condensed Consolidated Balance Sheets. Supplemental cash flow disclosures related to leases: Operating lease assets obtained in exchange for new operating lease liabilities (includes new leases and remeasurements or modifications of existing leases) were as follows:
Cash dividends. The Company’s Board of Directors declared a quarterly cash dividend of $0.285 per common share in March 2020. In May 2020, the Company suspended its quarterly dividends due to the economic uncertainty stemming from the COVID-19 pandemic. On March 2, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.285 per common share, payable on March 31, 2021, resuming quarterly dividends. In May 2021, the Company’s Board of Directors declared a cash dividend of $0.285 per common share, payable on June 30, 2021. In August 2021, the Company’s Board of Directors declared a cash dividend of $0.285 per common share, payable on September 30, 2021. Litigation, claims, and assessments. Like many retailers, the Company has been named in class/representative action lawsuits, primarily in California, alleging violation of wage and hour/employment laws and consumer protection laws. Class/representative action litigation remains pending as of July 31, 2021. The Company is also party to various other legal and regulatory proceedings arising in the normal course of business. Actions filed against the Company may include commercial, product and product safety, consumer, intellectual property, environmental, and labor and employment-related claims, including lawsuits in which private plaintiffs or governmental agencies allege that the Company violated federal, state, and/or local laws. Actions against the Company are in various procedural stages. Many of these proceedings raise factual and legal issues and are subject to uncertainties. In the opinion of management, the resolution of pending class/representative action litigation and other currently pending legal and regulatory proceedings will not have a material adverse effect on the Company’s financial condition, results of operations, or cash flows. Recently adopted accounting standards. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (ASC 740). ASU 2019-12 eliminates certain exceptions in ASC 740 related to the methodology for calculating income taxes in an interim period. It also clarifies and simplifies other aspects of the accounting for income taxes. The amendments in ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, including adoption in any interim period. The Company adopted ASU 2019-12 on a prospective basis in the first quarter of fiscal 2020. The most significant impact to the Company is the removal of a limit on the tax benefit recognized on pre-tax losses in interim periods. The adoption of this standard did not have a material impact on the Company’s fiscal 2020 results. Recently issued accounting standards. The Company considers the applicability and impact of all ASUs issued by the FASB. For the three and six month periods ended July 31, 2021, the ASUs issued by the FASB were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s condensed consolidated financial results.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The carrying value of cash and cash equivalents, short- and long-term investments, restricted cash and cash equivalents, restricted investments, accounts receivable, other long-term assets, accounts payable, and other long-term liabilities approximates their estimated fair value. Accounting standards pertaining to fair value measurements establish a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The inputs used to measure fair value include: Level 1, observable inputs such as quoted prices in active markets; Level 2, inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, unobservable inputs in which little or no market data exists. This fair value hierarchy requires the Company to develop its own assumptions, maximize the use of observable inputs, and minimize the use of unobservable inputs when measuring fair value. Corporate, U.S. government and agency, and mortgage-backed securities are classified within Level 1 or Level 2 because these securities are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The fair value of the Company’s financial instruments are as follows:
The underlying assets in the Company’s non-qualified deferred compensation program as of July 31, 2021, January 30, 2021, and August 1, 2020 (included in Other long-term assets and in Other long-term liabilities) primarily consist of participant-directed money market, stable value, stock, and bond funds. The fair value measurement for funds with quoted market prices in active markets (Level 1) and for funds without quoted market prices in active markets (Level 2) are as follows:
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Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Management Incentive Plan and Stock-Based Compensation | Management Incentive Plan and Stock-Based Compensation The Company has incentive compensation programs which provide cash incentive bonuses and performance share awards to key management and employees based on Company and individual performance. For fiscal 2021, the Compensation Committee of the Board of Directors established the performance measures for determining incentive compensation amounts as based on a combination of profitability-based performance goals and the attainment of specific management priorities related to business challenges from the COVID-19 pandemic, as measured and approved by the Compensation Committee. As of July 31, 2021, the Company has established an accrual for this incentive compensation based on its forecasted attainment of the profitability-based performance goals and the Compensation Committee’s assessment of progress towards achievement of the specific business priorities. For the fiscal 2020 management incentive bonus plan and performance share awards, the Compensation Committee approved modifications in August 2020 to the performance measurement goals, to be based on the attainment of specific management priorities related to business challenges from the COVID-19 pandemic, as measured and approved by the Compensation Committee, as an alternative to the previously established profitability-based performance goals for 2020. Stock-based compensation. For the three and six month periods ended July 31, 2021 and August 1, 2020, the Company recognized stock-based compensation expense as follows:
Total stock-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Operations for the three and six month periods ended July 31, 2021 and August 1, 2020, is as follows:
The tax benefits related to stock-based compensation expense for the three and six month periods ended July 31, 2021 were $5.7 million and $11.0 million, respectively. The tax benefits related to stock-based compensation expense for the three and six month periods ended August 1, 2020 were $4.8 million and $10.2 million, respectively. Restricted stock awards. The Company grants shares of restricted stock or restricted stock units to directors, officers, and key employees. The market value of shares of restricted stock and restricted stock units at the date of grant is amortized to expense over the vesting period of generally to five years. During the three and six month periods ended July 31, 2021 and August 1, 2020, shares purchased by the Company for tax withholding totaled 13,627 and 400,593, and 308 and 349,821, respectively, and are considered treasury shares which are available for reissuance. Performance share awards. The Company has a performance share award program for senior executives. A performance share award represents a right to receive shares of restricted stock on a specified settlement date based on the Company’s attainment of performance goals during the performance period, which is the Company’s fiscal year. If attained, the restricted stock then vests over a service period, generally to three years from the date the performance award was granted. As of July 31, 2021, shares related to unvested restricted stock, restricted stock units, and performance share awards totaled 4.1 million shares. A summary of restricted stock, restricted stock units, and performance share award activity for the six month period ended July 31, 2021, is presented below:
The unamortized compensation expense at July 31, 2021, was $204.9 million, which is expected to be recognized over a weighted-average remaining period of 2.2 years. The unamortized compensation expense at August 1, 2020, was $152.4 million, which was expected to be recognized over a weighted-average remaining period of 2.2 years. Employee stock purchase plan. Under the Employee Stock Purchase Plan (“ESPP”), eligible employees participating in the quarterly offering period can choose to have up to the lesser of 10% of their annual base earnings or the IRS annual share purchase limit of $25,000 in aggregate market value to purchase the Company’s common stock. The purchase price of the stock is 85% of the closing market price on the date of purchase. Purchases occur on a quarterly basis (on the last trading day of each calendar quarter). The Company recognizes expense for ESPP purchase rights equal to the value of the 15% discount given on the purchase date.
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share | Earnings (Loss) Per ShareThe Company computes and reports both basic earnings (loss) per share (“EPS”) and diluted EPS. Basic EPS is computed by dividing net earnings (loss) by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed by dividing net earnings (loss) by the sum of the weighted-average number of common shares and dilutive common stock equivalents outstanding during the period, except in cases where the effect of the common stock equivalents would be anti-dilutive. Diluted EPS reflects the total potential dilution that could occur from outstanding equity plan awards and unvested shares of both performance and non-performance based awards of restricted stock and restricted stock units. For periods of net loss, basic and diluted EPS are the same as the effect of the assumed vesting of restricted stock, restricted stock units, and performance share awards are anti-dilutive. For the three and six month periods ended July 31, 2021, approximately 4,400 and 2,200 weighted-average shares were excluded from the calculation of diluted EPS because their effect would have been anti-dilutive for the periods presented. For the three month period ended August 1, 2020, approximately 628,900 weighted-average shares were excluded from the calculation of diluted EPS because their effect would have been anti-dilutive for the period presented. For the six month period ended August 1, 2020, basic and diluted EPS were the same due to the Company’s net loss. The following is a reconciliation of the number of shares (denominator) used in the basic and diluted EPS computations:
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Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Short-term debt and long-term debt. Short-term debt and unsecured senior debt, net of unamortized discounts and debt issuance costs, consisted of the following:
Revolving credit facilities. The Company's $800 million unsecured revolving credit facility expires in July 2024, and contains a $300 million sublimit for issuance of standby letters of credit. The facility also contains an option allowing the Company to increase the size of its credit facility by up to an additional $300 million, with the agreement of the lenders. Interest on borrowings under this facility is based on LIBOR (or an alternate benchmark rate, if LIBOR is no longer available) plus an applicable margin and is payable quarterly and upon maturity. The revolving credit facility may be extended, at the Company’s option, for up to two additional one year periods, subject to customary conditions. In March 2020, the Company borrowed $800 million available under its revolving credit facility. Interest on the loan was based on LIBOR plus 0.875% (or 1.76%). In May 2020, the Company amended its $800 million unsecured revolving credit facility (the “Amended Credit Facility”) to temporarily suspend, for the second and third quarters of fiscal 2020, the Consolidated Adjusted Debt to EBITDAR ratio financial covenant, and to apply a transitional modification to that ratio effective in the fourth quarter of fiscal 2020. In October 2020, the Company repaid in full the $800 million it borrowed under the unsecured revolving credit facility. As of July 31, 2021, the Company had no borrowings or standby letters of credit outstanding under this facility, the $800 million credit facility remains in place and available, and the Company was in compliance with the amended covenant. In May 2020, the Company also entered into an additional $500 million 364-day senior revolving credit facility which was scheduled to expire in April 2021. In October 2020, the Company terminated this senior revolving credit facility. The Company had no borrowings under that credit facility at any time. Senior notes. As of July 31, 2021, the Company had outstanding Series B unsecured Senior Notes in the aggregate principal amount of $65 million held by various institutional investors. The Series B notes are due in December 2021, and bear interest at a rate of 6.530%. Borrowings under these Senior Notes are subject to certain financial covenants that were amended in June 2020. As of July 31, 2021, the Company was in compliance with these covenants. As of July 31, 2021, the Company also had outstanding unsecured 3.375% Senior Notes due September 2024 (the “2024 Notes”) with an aggregate principal amount of $250 million. Interest on the 2024 Notes is payable semi-annually. In April 2020, the Company issued an aggregate of $2.0 billion in unsecured senior notes in four tenors as follows: 4.600% Senior Notes due April 2025 (the “2025 Notes”) with an aggregate principal amount of $700 million, 4.700% Senior Notes due April 2027 (the “2027 Notes”) with an aggregate principal amount of $400 million, 4.800% Senior Notes due April 2030 (the “2030 Notes”) with an aggregate principal amount of $400 million, and 5.450% Senior Notes due April 2050 (the “2050 Notes”) with an aggregate principal amount of $500 million. Cash proceeds, net of discounts and other issuance costs, were approximately $1.973 billion. Interest on the 2025, 2027, 2030, and 2050 Notes is payable semi-annually beginning October 2020. In October 2020, the Company accepted for repurchase approximately $775 million in aggregate principal amount of the senior notes issued in April 2020, pursuant to cash tender offers as follows: $351 million of the 2050 Notes, $266 million of the 2030 Notes, and $158 million of the 2027 Notes. The Company paid approximately $1.003 billion in aggregate consideration (including transaction costs, and accrued and unpaid interest) and recorded an approximately $240 million loss on the early extinguishment for the accepted senior notes. In October 2020, the Company issued an aggregate of $1.0 billion in unsecured senior notes in two tenors as follows: 0.875% Senior Notes due April 2026 (the “2026 Notes”) with an aggregate principal amount of $500 million and 1.875% Senior Notes due April 2031 (the “2031 Notes”) with an aggregate principal amount of $500 million. Cash proceeds, net of discounts and other issuance costs, were approximately $987.2 million. Interest on the 2026 and 2031 Notes is payable semi-annually beginning April 2021. The Company used the net proceeds from the offering of the 2026 and 2031 Notes to fund the purchase of the accepted senior notes from its tender offers. As of July 31, 2021, January 30, 2021, and August 1, 2020, total unamortized discount and debt issuance costs were $24.8 million, $26.9 million, and $28.7 million, respectively, and were classified as a reduction of Long-term debt. All of the Senior Notes are subject to prepayment penalties for early payment of principal. As of July 31, 2021 and January 30, 2021, the aggregate fair value of the eight outstanding series of Senior Notes was approximately $2.7 billion and $2.8 billion, respectively. As of August 1, 2020, the aggregate fair value of the six then outstanding series of Senior Notes was approximately $2.8 billion. The fair value is estimated by obtaining comparable market quotes which are considered to be Level 1 inputs under the fair value measurements and disclosures guidance. The table below shows the components of interest expense and income for the three and six month periods ended July 31, 2021 and August 1, 2020:
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Taxes on Earnings (Loss) |
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Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Taxes on Earnings (Loss) | Taxes on Earnings (Loss) On March 27, 2020, the CARES Act was signed into law. The CARES Act made several significant changes to business tax provisions, including modifications for net operating losses, employee retention credits, and deferral of employer payroll tax payments. The modifications for net operating losses eliminate the taxable income limitation for certain net operating losses and allow the carry back of net operating losses arising in 2018, 2019, and 2020 to the five prior tax years, respectively. Subsequently, the Consolidated Appropriations Act of 2021 (“CAA”) and the American Rescue Plan Act (“ARPA”) were signed into law on December 27, 2020 and March 11, 2021, respectively. The CAA and ARPA made several changes to business tax provisions, including increasing and extending the employee retention credits through December 31, 2021, extending certain employment-related tax credits through December 31, 2025, and limiting certain executive compensation deductions, effective fiscal 2027. The Company’s effective tax rates for the three month periods ended July 31, 2021 and August 1, 2020, were approximately 25% and 61%, respectively. The decrease in the effective tax rate of 36% for the three month period ended July 31, 2021 compared to the three month period ended August 1, 2020 was primarily due to fluctuations in pre-tax earnings (loss), partially offset by a revaluation of deferred taxes related to the CARES Act in the three month period ended August 1, 2020. The Company’s effective tax rates for the six month periods ended July 31, 2021 and August 1, 2020, were approximately 24% and 31%, respectively. The decrease in the effective tax rate of 7% for the six month period ended July 31, 2021 compared to the six month period ended August 1, 2020 was primarily due to fluctuations in pre-tax earnings (loss). The Company's effective tax rate is impacted by changes in tax law and accounting guidance, location of new stores, level of earnings, tax effects associated with share-based compensation, and uncertain tax positions. As of July 31, 2021, January 30, 2021, and August 1, 2020, the reserves for unrecognized tax benefits were $75.6 million, $67.9 million, and $71.6 million, inclusive of $9.7 million, $7.7 million, and $8.5 million of related interest and penalties, respectively. The Company accounts for interest and penalties related to unrecognized tax benefits as a part of its provision for taxes on earnings. If recognized, $60.3 million would impact the Company’s effective tax rate. It is reasonably possible that certain state tax matters may be concluded or statutes of limitations may lapse during the next 12 months. Accordingly, the total amount of unrecognized tax benefits may decrease by up to $11.1 million. The difference between the total amount of unrecognized tax benefits and the amounts that would impact the effective tax rate relates to amounts attributable to deferred income tax assets and liabilities. These amounts are net of federal and state income taxes. The Company is open to audit by the Internal Revenue Service under the statute of limitations for fiscal years 2017 through 2020. The Company’s state income tax returns are generally open to audit under the various statutes of limitations for fiscal years 2016 through 2020. Certain state tax returns are currently under audit by various tax authorities. The Company does not expect the results of these audits to have a material impact on the condensed consolidated financial statements.
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Summary of Significant Accounting Policies (Policies) |
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Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation. The accompanying unaudited interim condensed consolidated financial statements have been prepared from the records of Ross Stores, Inc. and subsidiaries (the “Company”) without audit and, in the opinion of management, include all adjustments (consisting of only normal, recurring adjustments) necessary to present fairly the Company’s financial position as of July 31, 2021 and August 1, 2020, the results of operations, comprehensive income (loss), and stockholders’ equity for the three and six month periods ended July 31, 2021 and August 1, 2020, and cash flows for the six month periods ended July 31, 2021 and August 1, 2020. The Condensed Consolidated Balance Sheet as of January 30, 2021, presented herein, has been derived from the Company’s audited consolidated financial statements for the fiscal year then ended. Certain information and disclosures normally included in the notes to annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted for purposes of these interim condensed consolidated financial statements. The interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including notes thereto, contained in the Company’s Annual Report on Form 10-K for the year ended January 30, 2021. The results of operations, comprehensive income (loss), and stockholders’ equity for the three and six month periods ended July 31, 2021 and August 1, 2020, and cash flows for the six month periods ended July 31, 2021 and August 1, 2020 presented herein are not necessarily indicative of the results to be expected for the full fiscal year.
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Use of accounting estimates | Use of accounting estimates. The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company’s significant accounting estimates include valuation reserves for inventory, packaway and other inventory carrying costs, useful lives of fixed assets, insurance reserves, reserves for uncertain tax positions, employee retention credits under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), and legal claims. The ongoing uncertainties and potential impacts from the COVID-19 pandemic increase the challenge of making these estimates; actual results could differ materially from the Company’s estimates. |
Cash, restricted cash, and restricted investments | Cash, restricted cash, and restricted investments. Restricted cash, cash equivalents, and investments serve as collateral for certain insurance and trade payable obligations of the Company. These restricted funds are invested in bank deposits, money market mutual funds, U.S. Government and agency securities, and corporate securities and cannot be withdrawn from the Company’s account without the prior written consent of the secured parties. The classification between current and long-term is based on the timing of expected payments of the obligations. |
Property and equipment | Property and equipment. As of July 31, 2021 and August 1, 2020, the Company had $11.7 million and $22.6 million, respectively, of property and equipment purchased but not yet paid. These purchases are included in Property and equipment, Accounts payable, and Accrued expenses and other in the accompanying Condensed Consolidated Balance Sheets. |
Operating leases | Operating leases. In response to the COVID-19 pandemic, the Financial Accounting Standards Board (“FASB”) provided relief under Accounting Standards Update (“ASU”) 2016-02, Leases (Accounting Standards Codification “ASC” 842). Under this relief, companies can make a policy election on how to treat lease concessions resulting directly from the COVID-19 pandemic, provided that the modified contracts result in total cash flows that are substantially the same or less than the cash flows in the original contract. The Company made the policy election to account for lease concessions that result from the COVID-19 pandemic as if they were made under enforceable rights in the original contract. Additionally, the Company made the policy election to account for these concessions outside of the lease modification framework described under ASC 842. The Company recorded accruals for deferred rental payments and recognized rent abatements or concessions as variable lease costs in the periods incurred. Accruals for rent payment deferrals are included in Accrued expenses and other in the accompanying Condensed Consolidated Balance Sheets.
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Recently adopted accounting standards and Recently issued accounting standards | Recently adopted accounting standards. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (ASC 740). ASU 2019-12 eliminates certain exceptions in ASC 740 related to the methodology for calculating income taxes in an interim period. It also clarifies and simplifies other aspects of the accounting for income taxes. The amendments in ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, including adoption in any interim period. The Company adopted ASU 2019-12 on a prospective basis in the first quarter of fiscal 2020. The most significant impact to the Company is the removal of a limit on the tax benefit recognized on pre-tax losses in interim periods. The adoption of this standard did not have a material impact on the Company’s fiscal 2020 results.Recently issued accounting standards. The Company considers the applicability and impact of all ASUs issued by the FASB. For the three and six month periods ended July 31, 2021, the ASUs issued by the FASB were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s condensed consolidated financial results. |
Fair Value Measurements | Fair Value Measurements The carrying value of cash and cash equivalents, short- and long-term investments, restricted cash and cash equivalents, restricted investments, accounts receivable, other long-term assets, accounts payable, and other long-term liabilities approximates their estimated fair value. Accounting standards pertaining to fair value measurements establish a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The inputs used to measure fair value include: Level 1, observable inputs such as quoted prices in active markets; Level 2, inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, unobservable inputs in which little or no market data exists. This fair value hierarchy requires the Company to develop its own assumptions, maximize the use of observable inputs, and minimize the use of unobservable inputs when measuring fair value. Corporate, U.S. government and agency, and mortgage-backed securities are classified within Level 1 or Level 2 because these securities are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs.
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Earnings (Loss) Per Share | Earnings (Loss) Per ShareThe Company computes and reports both basic earnings (loss) per share (“EPS”) and diluted EPS. Basic EPS is computed by dividing net earnings (loss) by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed by dividing net earnings (loss) by the sum of the weighted-average number of common shares and dilutive common stock equivalents outstanding during the period, except in cases where the effect of the common stock equivalents would be anti-dilutive. Diluted EPS reflects the total potential dilution that could occur from outstanding equity plan awards and unvested shares of both performance and non-performance based awards of restricted stock and restricted stock units. For periods of net loss, basic and diluted EPS are the same as the effect of the assumed vesting of restricted stock, restricted stock units, and performance share awards are anti-dilutive. |
Summary of Significant Accounting Policies (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of revenue | The following sales mix table disaggregates revenue by merchandise category for the three and six month periods ended July 31, 2021 and August 1, 2020:
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Schedule of cash and cash equivalents reconciliation | The following table provides a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents in the Condensed Consolidated Balance Sheets that reconcile to the amounts shown on the Condensed Consolidated Statements of Cash Flows:
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Schedule of restricted cash reconciliation | The following table provides a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents in the Condensed Consolidated Balance Sheets that reconcile to the amounts shown on the Condensed Consolidated Statements of Cash Flows:
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Supplemental cash flow disclosures related to leases | Supplemental cash flow disclosures related to leases: Operating lease assets obtained in exchange for new operating lease liabilities (includes new leases and remeasurements or modifications of existing leases) were as follows:
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Fair Value Measurements (Tables) |
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Jul. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair values of financial instruments | The fair value of the Company’s financial instruments are as follows:
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Schedule of fair value of assets and liabilities | The fair value measurement for funds with quoted market prices in active markets (Level 1) and for funds without quoted market prices in active markets (Level 2) are as follows:
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Management Incentive Plan and Stock-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock-based compensation expense by award type | For the three and six month periods ended July 31, 2021 and August 1, 2020, the Company recognized stock-based compensation expense as follows:
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Schedule of stock-based compensation recognized in Consolidated Statements of Operations | Total stock-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Operations for the three and six month periods ended July 31, 2021 and August 1, 2020, is as follows:
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Schedule of restricted stock and performance share award activity | A summary of restricted stock, restricted stock units, and performance share award activity for the six month period ended July 31, 2021, is presented below:
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Earnings (Loss) Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of the number of shares (denominator) used in the basic and diluted EPS computations | The following is a reconciliation of the number of shares (denominator) used in the basic and diluted EPS computations:
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Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt | Short-term debt and unsecured senior debt, net of unamortized discounts and debt issuance costs, consisted of the following:
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Schedule of components of interest expense and income | The table below shows the components of interest expense and income for the three and six month periods ended July 31, 2021 and August 1, 2020:
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Summary of Significant Accounting Policies (Disaggregation of Revenue) (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2021 |
Aug. 01, 2020 |
Jul. 31, 2021 |
Aug. 01, 2020 |
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Disaggregation of Revenue [Line Items] | ||||
Total | 100.00% | 100.00% | 100.00% | 100.00% |
Ladies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 27.00% | 25.00% | 25.00% | 25.00% |
Home Accents and Bed and Bath | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 24.00% | 25.00% | 25.00% | 26.00% |
Men’s | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 15.00% | 14.00% | 14.00% | 13.00% |
Accessories, Lingerie, Fine Jewelry, and Cosmetics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 14.00% | 13.00% | 14.00% | 13.00% |
Shoes | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 12.00% | 14.00% | 13.00% | 14.00% |
Children’s | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 8.00% | 9.00% | 9.00% | 9.00% |
Summary of Significant Accounting Policies (Cash, Cash Equivalents, Restricted Cash Reconciliation) (Details) - USD ($) $ in Thousands |
Jul. 31, 2021 |
Jan. 30, 2021 |
Aug. 01, 2020 |
Feb. 01, 2020 |
---|---|---|---|---|
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 5,569,071 | $ 4,819,293 | $ 3,793,043 | |
Restricted cash and cash equivalents included in: | ||||
Prepaid expenses and other | 10,801 | 85,711 | 10,348 | |
Other long-term assets | 49,206 | 48,765 | 50,524 | |
Total restricted cash and cash equivalents | 60,007 | 134,476 | 60,872 | |
Total cash and cash equivalents, and restricted cash and cash equivalents | $ 5,629,078 | $ 4,953,769 | $ 3,853,915 | $ 1,411,410 |
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 02, 2021 |
Aug. 31, 2021 |
May 31, 2021 |
Mar. 31, 2020 |
Jul. 31, 2021 |
May 01, 2021 |
May 02, 2020 |
Jul. 31, 2021 |
Aug. 01, 2020 |
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Summary of Significant Accounting Policies [Line Items] | |||||||||
Cash dividends declared per share (in dollars per share) | $ 0.285 | $ 0.285 | $ 0.285 | $ 0.285 | $ 0.285 | $ 0.285 | |||
Subsequent Event | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Cash dividends declared per share (in dollars per share) | $ 0.285 | ||||||||
Property, Plant and Equipment | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Property and equipment purchased but not yet paid | $ 11.7 | $ 22.6 |
Summary of Significant Accounting Policies (Leases) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2021 |
Aug. 01, 2020 |
Jul. 31, 2021 |
Aug. 01, 2020 |
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Accounting Policies [Abstract] | ||||
Operating lease assets obtained in exchange for new operating lease liabilities | $ 117,491 | $ 119,377 | $ 186,661 | $ 284,351 |
Fair Value Measurements - Balance Sheet Items (Details) - USD ($) $ in Thousands |
Jul. 31, 2021 |
Jan. 30, 2021 |
Aug. 01, 2020 |
---|---|---|---|
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents (Level 1) | $ 5,569,071 | $ 4,819,293 | $ 3,793,043 |
Restricted cash and cash equivalents (Level 1) | 60,007 | 134,476 | 60,872 |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments (Level 2) | $ 8 | $ 8 | $ 8 |
Fair Value Measurements - Underlying Asset Value (Details) - USD ($) $ in Thousands |
Jul. 31, 2021 |
Jan. 30, 2021 |
Aug. 01, 2020 |
---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | $ 176,095 | $ 159,116 | $ 145,979 |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | 176,095 | 159,116 | 135,650 |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | $ 0 | $ 0 | $ 10,329 |
Management Incentive Plan and Stock-Based Compensation (Recognized Stock-Based Compensation) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2021 |
Aug. 01, 2020 |
Jul. 31, 2021 |
Aug. 01, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total | $ 29,584 | $ 22,158 | $ 58,258 | $ 46,897 |
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total | 16,057 | 17,638 | 34,646 | 34,120 |
Performance awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total | 12,385 | 3,526 | 21,399 | 10,822 |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total | $ 1,142 | $ 994 | $ 2,213 | $ 1,955 |
Management Incentive Plan and Stock-Based Compensation (Total Stock-Based Compensation Recognized in the Consolidated Statements of Earnings) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2021 |
Aug. 01, 2020 |
Jul. 31, 2021 |
Aug. 01, 2020 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total | $ 29,584 | $ 22,158 | $ 58,258 | $ 46,897 |
Cost of goods sold | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total | 15,088 | 11,849 | 29,760 | 24,515 |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total | $ 14,496 | $ 10,309 | $ 28,498 | $ 22,382 |
Management Incentive Plan and Stock-Based Compensation (Unvested Restricted Stock, RSU, and Performance Shares Activity) (Details) - Restricted Stock, Restricted Stock Units, and Performance Shares shares in Thousands |
6 Months Ended |
---|---|
Jul. 31, 2021
$ / shares
shares
| |
Number of shares | |
Beginning balance (in shares) | shares | 4,230 |
Awarded (in shares) | shares | 994 |
Released (in shares) | shares | (1,062) |
Forfeited (in shares) | shares | (106) |
Ending balance (in shares) | shares | 4,056 |
Weighted-average grant date fair value | |
Beginning balance (in dollars per share) | $ / shares | $ 85.15 |
Awarded (in dollars per share) | $ / shares | 122.36 |
Released (in dollars per share) | $ / shares | 75.19 |
Forfeited (in dollars per share) | $ / shares | 94.62 |
Ending balance (in dollars per share) | $ / shares | $ 96.67 |
Earnings (Loss) Per Share (Narrative) (Details) - shares |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jul. 31, 2021 |
Aug. 01, 2020 |
Jul. 31, 2021 |
|
Earnings Per Share [Abstract] | |||
Weighted average shares excluded from calculation of diluted EPS (in shares) | 4,400 | 628,900 | 2,200 |
Earnings (Loss) Per Share (Schedule of Basic and Diluted EPS Computations) (Details) - $ / shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2021 |
Aug. 01, 2020 |
Jul. 31, 2021 |
Aug. 01, 2020 |
|
Earnings Per Share [Abstract] | ||||
Basic EPS, Shares (in shares) | 352,865 | 352,276 | 352,927 | 352,239 |
Basic EPS , Amount (in dollars per share) | $ 1.40 | $ 0.06 | $ 2.75 | $ (0.81) |
Effect of dilutive common stock equivalents, Shares (in shares) | 2,070 | 1,956 | 2,234 | 0 |
Effect of dilutive common stock equivalents, Amount (in dollars per share) | $ (0.01) | $ 0 | $ (0.02) | $ 0 |
Diluted EPS, Shares (in shares) | 354,935 | 354,232 | 355,161 | 352,239 |
Diluted EPS, Amount (in dollars per share) | $ 1.39 | $ 0.06 | $ 2.73 | $ (0.81) |
Debt (Interest Expense, Net) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2021 |
Aug. 01, 2020 |
Jul. 31, 2021 |
Aug. 01, 2020 |
|
Debt Disclosure [Abstract] | ||||
Interest expense on long-term debt | $ 22,205 | $ 28,331 | $ 44,399 | $ 38,512 |
Interest expense on short-term debt | 0 | 3,599 | 0 | 5,296 |
Other interest expense | 291 | 1,031 | 621 | 1,309 |
Capitalized interest | (3,590) | (3,349) | (6,829) | (5,503) |
Interest income | (199) | (757) | (435) | (4,093) |
Interest expense, net | $ 18,707 | $ 28,855 | $ 37,756 | $ 35,521 |
Taxes on Earnings (Loss) (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 31, 2021 |
Aug. 01, 2020 |
Jul. 31, 2021 |
Aug. 01, 2020 |
Jan. 30, 2021 |
|
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate (percent) | 25.00% | 61.00% | 24.00% | 31.00% | |
Effective income tax rate, decrease from prior year (percent) | 0.36 | 0.07 | |||
Unrecognized tax benefits | $ 75.6 | $ 71.6 | $ 75.6 | $ 71.6 | $ 67.9 |
Income tax penalties and interest accrued | 9.7 | $ 8.5 | 9.7 | $ 8.5 | $ 7.7 |
Impact of recognizing taxes and interest related to unrecognized tax benefits | 60.3 | 60.3 | |||
Unrecognized tax benefits reduction resulting from conclusion of certain state tax matters or lapse of applicable statute of limitations (up to) | $ 11.1 | $ 11.1 |
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