Stock-Based Compensation

6 Months Ended

Aug. 03, 2024

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Note 6 - 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”). Pursuant to the amendment and restatement, the number of shares of our common stock that are available for issuance under the Amended 2017 Plan was increased by 1.8 million additional shares, the term of the plan was extended by an additional ten years from the date of shareholder approval, and certain other design changes were made to the plan. As of August 3, 2024, there were 1,698,379 shares available for issuance under the Amended 2017 Plan, assuming that all outstanding performance stock units where the performance condition has not been satisfied vest at the maximum level of performance.

Stock-based compensation includes share-settled awards issued pursuant to the Amended 2017 Plan in the form of restricted stock units, performance stock units, and restricted and other stock awards. Additionally, we recognize stock-based compensation expense for the discount on shares sold to employees through our Employee Stock Purchase Plan and for cash-settled stock appreciation rights. For the thirteen and twenty-six weeks ended August 3, 2024 and July 29, 2023, stock-based compensation expense was comprised of the following:


(In thousands)	Thirteen Weeks Ended August 3, 2024			Thirteen Weeks Ended July 29, 2023			Twenty-six Weeks Ended August 3, 2024			Twenty-six Weeks Ended July 29, 2023
Share-settled equity awards	$	1,774		$	1,098		$	3,303		$	2,324
Stock appreciation rights		0			10			221			(17	)
Employee stock purchase plan		43			9			50			19
Total stock-based compensation expense	$	1,817		$	1,117		$	3,574		$	2,326
Income tax effect at statutory rates	$	(442	)	$	(249	)	$	(869	)	$	(522	)
Additional income tax expense (benefit) on vesting of share-settled awards	$	0		$	5		$	(109	)	$	(616	)

As of August 3, 2024, approximately $11.3 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 1.6 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 February 3, 2024		579,307		$	27.04
Granted		338,773			32.06
Vested		(46,333	)		30.17
Unearned		(159,954	)		24.87
Outstanding at August 3, 2024		711,793		$	29.72

The total fair value at grant date of restricted stock units and performance stock units that vested during the twenty-six weeks ended August 3, 2024 and July 29, 2023 was $1.4 million and $4.8 million, respectively. The weighted-average grant date fair value of restricted stock units and performance stock units granted during the twenty-six weeks ended July 29, 2023 was $24.98. There were 159,954 shares that were not earned because the performance condition for performance stock units granted in Fiscal 2023 was not satisfied.

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


	Number of Shares		Weighted- Average Grant Date Fair Value
Outstanding at February 3, 2024		0	$	0.00
Granted		12,760		36.84
Vested		0		0.00
Forfeited		0		0.00
Outstanding at August 3, 2024		12,760	$	36.84

No restricted stock or other stock awards vested during the twenty-six weeks ended August 3, 2024 or July 29, 2023. The weighted average grant date fair value of restricted stock awards granted during the twenty-six weeks ended July 29, 2023 was $21.90.