Share-Based Compensation

3 Months Ended

May 04, 2024

Share-Based Payment Arrangement [Abstract]

The following summarizes the share-based compensation expense recognized under all of the Company’s stock plans (in thousands):


	Three Months Ended
	May 4, 2024		Apr 29, 2023
Stock options	$	—	$	506
Stock awards/units	4,600		4,065
Employee Stock Purchase Plan	91		49
Total share-based compensation expense	$	4,691	$	4,620

As of May 4, 2024, there was no unrecognized compensation cost related to nonvested stock options and approximately $29.6 million of unrecognized compensation cost related to nonvested stock awards/units. This cost is expected to be recognized over a weighted average period of 1.8 years.

Annual Grants

On March 29, 2024, the Company granted 375,800 nonvested stock awards/units to its employees.

Performance-Based Awards

The Company has granted certain nonvested stock units subject to performance-based vesting conditions to select executive officers. Each award of nonvested stock units generally has an initial vesting period from the date of the grant through either (i) the end of the first fiscal year or (ii) the first anniversary of the date of grant, followed by annual vesting periods which may range from two-to-three years.

The following summarizes the activity for nonvested performance-based units during the three months ended May 4, 2024:


	Number of Units	Weighted Average Grant Date Fair Value
Nonvested at February 3, 2024	376,916	$	18.36
Granted	—	—
Vested	(112,590)	18.14
Forfeited	—	—
Nonvested at May 4, 2024	264,326	$	18.45

Market-Based Awards

The Company has granted certain nonvested stock units subject to market-based vesting conditions to select executive officers. These market-based awards include (i) units where the number of shares that may ultimately vest will equal 0% to 150% of the target number of shares, subject to the performance of the Company’s total stockholder return (“TSR”) relative to the TSR of a select group of peer companies over a three-year period and (ii) units scheduled to vest based on the attainment of certain absolute stock price levels over a four-year period. Vesting is also subject to continued service requirements through the vesting date.

The following summarizes the activity for nonvested market-based units during the three months ended May 4, 2024:


	Number of Units	Weighted Average Grant Date Fair Value
Nonvested at February 3, 2024	722,780	$	19.55
Granted1	43,150	17.77
Vested1	(172,601)	17.77
Forfeited	—	—
Nonvested at May 4, 2024	593,329	$	19.94

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Notes:

1As a result of the achievement of certain market-based vesting conditions, there were 43,150 shares that vested in addition to the original target number of shares granted in fiscal 2022.