The Company accounts for share-based compensation under the provisions of ASC 718, Compensation - Stock Compensation, which requires the Company to measure and recognize compensation expense for all share-based payments at fair value.

Total share-based compensation expense included in the Consolidated Statements of Operations for the 13 weeks ended May 3, 2025 was $20.6 million ($15.8 million, net of tax), and for the 13 weeks ended May 4, 2024 was $20.6 million ($17.0 million, net of tax).

The Company grants time-based stock option awards, which vest over the requisite service period of the award or at an employee's eligible retirement date, if earlier. A summary of the Company’s stock option activity for the 13 weeks ended May 3, 2025 follows:


	Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic Value
	(In thousands)					(In years)		(In thousands)
Outstanding - February 1, 2025		4,324		$	17.98
Granted		1,316		$	12.65
Exercised		-		$	-
Cancelled		(468	)	$	21.89
Outstanding - May 3, 2025		5,172		$	16.27		4.3		1,074
Vested and expected to vest - May 3, 2025		5,011		$	16.22		4.1		-
Exercisable - May 3, 2025 (1)		433		$	8.62		1.9		1,074

(1)

Options exercisable represent "in-the-money" vested options based upon the weighted-average exercise price of vested options compared to the Company’s stock price on May 3, 2025.

As of May 3, 2025, there was $1.2 million of unrecognized compensation expense for stock option awards that is expected to be recognized over a weighted average period of 2.5 years.

The fair value of stock options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions:


	13 Weeks Ended
	May 3,			May 4,
Black-Scholes Option Valuation Assumptions	2025			2024
Risk-free interest rate (1)		3.9	%		4.4	%
Dividend yield		3.5	%		1.9	%
Volatility factor (2)		47.5	%		55.4	%
Weighted-average expected term (3)	4.5 years			4.5 years

(1)

Based on the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected life of our stock options.

(2)

Based on historical volatility of the Company’s common stock.

(3)

Represents the period of time options are expected to be outstanding. The weighted-average expected option terms were determined based on historical experience.

Time-based restricted stock awards are comprised of time-based restricted stock units. These awards vest over three years. Time-based restricted stock units receive dividend equivalents in the form of additional time-based restricted stock units, which are subject to the same restrictions and forfeiture provisions as the original award.

Performance-based restricted stock awards include performance-based restricted stock units ("PSU"). Annual PSU grants cliff vest, if at all, at the end of a three-year performance period upon achievement of pre-established goals. Outstanding PSU awards receive dividend equivalents in the form of additional PSUs, which are subject to the same restrictions and forfeiture provisions as the original award.

The grant date fair value of time-based restricted stock awards is based on the closing market price of the Company’s common stock on the date of grant. A Monte-Carlo simulation was utilized for performance-based restricted stock awards.

A summary of the Company’s restricted stock activity is presented in the following table:


	Time-Based Restricted Stock Units					Performance-Based Restricted Stock Units
	May 3, 2025					May 3, 2025
(Shares in thousands)	Shares			Weighted-Average Grant Date Fair Value		Shares			Weighted-Average Grant Date Fair Value
Non-vested - February 1, 2025		2,360		$	18.56		2,218		$	18.05
Granted		1,963		$	12.67		987		$	14.51
Vested		(1,187	)	$	17.38		(563	)	$	19.69
Cancelled		(40	)	$	18.55		(99	)	$	19.69
Non-vested - May 3, 2025		3,096		$	15.28		2,543		$	16.25

As of May 3, 2025, there was $43.8 million of unrecognized compensation expense related to non-vested, time-based restricted stock unit awards that is expected to be recognized over a weighted-average period of 2.4 years. There is $7.9 million of unrecognized compensation expense related to performance-based restricted stock unit awards that is expected to be recognized over a weighted-average period of 2.2 years.

As of May 3, 2025, the Company had 7 million shares available for all equity grants.