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Share-Based Compensation

9 Months Ended

Nov. 02, 2024

Share-Based Compensation

Share-Based Compensation

Note 12 Share-Based Compensation

The Company recognized share-based compensation expense of $3.4 million and $4.1 million during the thirteen weeks and $11.3 million and $10.9 million during the thirty-nine weeks ended November 2, 2024 and October 28, 2023, respectively.

The Company had net issuances of 20,699 and 3,365 shares of common stock during the thirteen weeks ended November 2, 2024 and October 28, 2023, respectively, for restricted stock grants, stock performance awards issued to employees and common and restricted stock grants issued to non-employee directors, net of forfeitures and shares withheld to satisfy the tax withholding requirement. During the thirty-nine weeks ended November 2, 2024 and October 28, 2023, the Company had net issuances of 82,550 and 590,706 shares of common stock, respectively, related to share-based plans.

Restricted Stock

The following table summarizes restricted stock activity for the periods ended November 2, 2024 and October 28, 2023:

Thirteen Weeks Ended

Thirteen Weeks Ended

November 2, 2024

October 28, 2023

Weighted-

Weighted-

Total Number

Average

Total Number

Average

of Restricted

Grant Date

of Restricted

Grant Date

Shares

Fair Value

Shares

Fair Value

Nonvested at August 3, 2024

1,240,275

$

27.48

Nonvested at July 29, 2023

1,608,057

$

21.55

Granted

2,783

32.62

Granted

10,906

28.35

Forfeited

(39,621)

27.60

Forfeited

(6,650)

21.48

Vested

(37,164)

26.75

Vested

(3,000)

9.76

Nonvested at November 2, 2024

1,166,273

$

27.51

Nonvested at October 28, 2023

1,609,313

$

21.62

Thirty-Nine Weeks Ended

Thirty-Nine Weeks Ended

November 2, 2024

October 28, 2023

Weighted-

Weighted-

Total Number

Average

Total Number

Average

of Restricted

Grant Date

of Restricted

Grant Date

Shares

Fair Value

Shares

Fair Value

Nonvested at February 3, 2024

1,512,421

$

21.96

Nonvested at January 28, 2023

1,603,960

$

18.57

Granted

322,880

40.67

Granted

590,900

22.97

Forfeited

(88,980)

25.77

Forfeited

(150,823)

18.68

Vested

(580,048)

20.82

Vested

(434,724)

13.24

Nonvested at November 2, 2024

1,166,273

$

27.51

Nonvested at October 28, 2023

1,609,313

$

21.62

The Company granted 2,783 restricted shares during the thirteen weeks ended November 2, 2024, which have a graded vesting term of three years, with 50% vesting after two years and 50% after three years. Of the 322,880 restricted shares the Company granted during the thirty-nine weeks ended November 2, 2024, 13,692 have a cliff-vesting term of one year and 309,188 shares have a graded vesting term of three years, with 50% vesting after two years and 50% after three years. The Company granted 10,906 restricted shares during the thirteen weeks ended October 28, 2023, which have a graded vesting term of three years, with 50% vesting after two years and 50% after three years. Of the 590,900 restricted shares granted during the thirty-nine weeks ended October 28, 2023, 554,832 shares have a graded vesting term of three years, with 50% vesting after two years and 50% after three years, 23,268 shares have a cliff-vesting term of one year, 7,000 shares have a graded vesting term of three years, with 50% vesting after eighteen months and 50% after three years, and 5,800 shares have a cliff-vesting term of two years.

Performance Awards

During the thirty-nine weeks ended November 2, 2024, the Company granted performance share awards for a targeted 165,854 shares, with a weighted-average grant date fair value of $41.05 in connection with the 2024 performance award (2024 – 2026 performance period). During the thirty-nine weeks ended October 28, 2023, the Company granted performance share awards for a targeted 276,434 shares, with a weighted-average grant date fair value of $23.12 in connection with the 2023 performance award (2023 – 2025 performance period). At the end of the vesting period, the employee will have earned an amount of shares or units between 0% and 200% of the targeted award, depending on the attainment of certain financial goals for the service period and individual achievement of strategic initiatives over the cumulative period of the award. The performance awards are payable in common stock for up to 100% of the targeted award and the remainder in cash if any portion exceeds the targeted award. Compensation expense is recognized based on the fair value of the award and the anticipated number of shares or units to be awarded for each tranche in accordance with the vesting schedule of the units over the three-year service period.

Restricted Stock Units for Non-Employee Directors

Equity-based grants may be made to non-employee directors in the form of restricted stock units ("RSUs") payable in cash or common stock at no cost to the non-employee director. The RSUs are subject to a vesting requirement (usually one year) and earn dividend equivalents at the same rate as dividends on the Company’s common stock. The dividend equivalents, which vest immediately, are automatically reinvested in additional RSUs. Expense related to the initial grant of RSUs is recognized ratably over the vesting period based upon the fair value of the RSUs. The RSUs payable in cash are remeasured at the end of each period. Expense for the dividend equivalents is recognized at fair value when the dividend equivalents are granted. Gains and losses resulting from changes in the fair value of the RSUs payable in cash subsequent to the vesting period and through the settlement date are recognized in the Company’s condensed consolidated statements of earnings. The Company granted 868 and 1,081 RSUs for dividend equivalents, during the thirteen weeks ended November 2, 2024 and October 28, 2023, respectively, with weighted-average grant date fair values of $33.78 and $28.80, respectively. The Company granted 30,191 and 50,376 RSUs to non-employee directors, including 2,807 and 3,840 and for dividend equivalents, during the thirty-nine weeks ended November 2, 2024 and October 28, 2023, respectively, with weighted-average grant date fair values of $34.99 and $19.72, respectively.