Stock-Based Compensation

9 Months Ended

Oct. 28, 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 October 28, 2023, 1,905,372 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 thirty-nine weeks ended October 28, 2023 and October 29, 2022, stock-based compensation expense was comprised of the following:

(In thousands)	Thirteen Weeks Ended  October 28, 2023			Thirteen Weeks Ended  October 29, 2022			Thirty-nine Weeks Ended  October 28, 2023			Thirty-nine Weeks Ended  October 29, 2022
Share-settled equity awards	$	1,242		$	1,780		$	3,566		$	4,665
Stock appreciation rights		(26	)		6			(43	)		(155	)
Employee stock purchase plan		6			9			25			26
Total stock-based compensation expense	$	1,222		$	1,795		$	3,548		$	4,536
Income tax effect at statutory rates	$	(341	)	$	(460	)	$	(863	)	$	(1,138	)
Additional income tax benefit on vesting of share-settled awards	$	(1	)	$	(6	)	$	(617	)	$	(527	)

As of October 28, 2023, approximately $6.4 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 1.7 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		(77,242	)		27.12
Outstanding at October 28, 2023		570,807		$	27.05

The total fair value at grant date of restricted stock units and performance stock units that vested during the thirty-nine weeks ended October 28, 2023 and October 29, 2022 was $4.8 million and $3.3 million, respectively. The weighted-average grant date fair value of restricted stock units and performance stock units granted during the thirty-nine weeks ended October 29, 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 October 28, 2023		21,462	$	21.90

No restricted stock and other stock awards vested during the thirty-nine weeks ended October 28, 2023 or October 29, 2022. The weighted-average grant date fair value of restricted stock and other stock awards granted during the thirty-nine weeks ended October 29, 2022 was $24.12.