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Earnings Per Share

9 Months Ended

Oct. 29, 2023

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

11. Earnings Per Share

We refer you to the discussion of Earnings Per Share in Note 2. Summary of Significant Accounting Policies, in the financial statements included in our 2023 Annual Report, for additional information concerning the calculation of earnings per share (EPS).

All stock awards are designed to encourage retention and to provide an incentive for increasing shareholder value. We have issued restricted stock awards to non-employee members of the board of directors since 2006 and to certain non-executive employees since 2014. We have issued restricted stock units (“RSUs”) to certain senior executives since fiscal 2012 under the Company’s Stock Incentive Plan. Each RSU entitles an executive to receive one share of the Company’s common stock if the executive remains continuously employed with the Company through the end of a three-year service period. The RSUs may be paid in shares of our common stock, cash or both at the discretion of the Compensation Committee of our board of directors. We have issued Performance-based Restricted Stock Units (“PSUs”) to certain senior executives since fiscal 2019 under the Company’s Stock Incentive Plan. Each PSU entitles the executive officer to receive one share of our common stock based on the achievement of two specified performance conditions if the executive officer remains continuously employed through the end of the three-year performance period. One target is based on our annual average growth in our EPS over the performance period and the other target is based on EPS growth over the performance period compared to our peers. The payout or settlement of the PSUs will be made in shares of our common stock.

We expect to continue to grant these types of awards annually in the future. The following table sets forth the number of outstanding restricted stock awards and RSUs and PSUs, net of forfeitures and vested shares, as of the fiscal period-end dates indicated:

		October 29,				January 29,
		2023				2023

Restricted shares			182				132
RSUs and PSUs			156				101
			338				233

All restricted shares, RSUs and PSUs awarded that have not yet vested are considered when computing diluted earnings per share.

During the fiscal 2024 nine-month period, we purchased and retired 620,634 shares of our common stock (at an average price of $18.79 per share) under the $20 million share repurchase authorization approved by our board of directors in fiscal 2023 and the additional $5 million share repurchase authorization approved by our board of directors in the second quarter of this year. These repurchases reduced our total outstanding shares and, consequently, reduced the weighted outstanding shares used in our calculation of earnings per share for the fiscal 2024 third quarter and nine-month period shown below. The share repurchase program was completed during the fiscal 2024 third quarter.

The following table sets forth the computation of basic and diluted earnings per share:

		Thirteen Weeks Ended								Thirty-Nine Weeks Ended
		October 29,				October 30,				October 29,				October 30,
		2023				2022				2023				2022

Net income		$	7,038			$	4,841			$	9,272			$	13,566
Less: Unvested participating restricted stock dividends			40				28				111				74
Net earnings allocated to unvested participating restricted stock			120				58				143				141
Earnings available for common shareholders			6,878				4,755				9,018				13,351

Weighted average shares outstanding for basic earnings per share			10,536				11,465				10,748				11,736
Dilutive effect of unvested restricted stock, RSU and PSU awards			140				60				130				102
Weighted average shares outstanding for diluted earnings per share			10,676				11,525				10,878				11,838

Basic earnings per share		$	0.66			$	0.42			$	0.85			$	1.16

Diluted earnings per share		$	0.65			$	0.42			$	0.85			$	1.14