BJ'S WHOLESALE CLUB HOLDINGS, INC., 10-Q filed on 8/25/2023
Quarterly Report
v3.23.2
Cover - shares
6 Months Ended
Jul. 29, 2023
Aug. 18, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jul. 29, 2023  
Document Transition Report false  
Entity File Number 001-38559  
Entity Registrant Name BJ’S WHOLESALE CLUB HOLDINGS, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 45-2936287  
Entity Address, Address Line One 350 Campus Drive  
Entity Address, City or Town Marlborough  
Entity Address, State or Province MA  
Entity Address, Postal Zip Code 01752  
City Area Code 774  
Local Phone Number 512-7400  
Title of 12(b) Security Common Stock, par value $0.01  
Trading Symbol BJ  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   133,731,549
Entity Central Index Key 0001531152  
Amendment Flag false  
Current Fiscal Year End Date --02-03  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2023  
v3.23.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jul. 29, 2023
Jan. 28, 2023
Jul. 30, 2022
Current assets:      
Cash and cash equivalents $ 26,210 $ 33,915 $ 163,681
Accounts receivable, net 200,279 239,746 204,495
Merchandise inventories 1,540,508 1,378,551 1,376,526
Prepaid expenses and other current assets 76,309 51,033 57,844
Total current assets 1,843,306 1,703,245 1,802,546
Operating lease right-of-use assets, net 2,165,125 2,142,925 2,192,548
Property and equipment, net 1,428,576 1,337,029 1,232,103
Goodwill 1,008,816 1,008,816 1,008,816
Intangibles, net 111,568 115,505 120,123
Deferred income taxes 7,928 11,498 4,525
Other assets 38,577 30,938 26,583
Total assets 6,603,896 6,349,956 6,387,244
Current liabilities:      
Short-term debt 411,000 405,000 350,000
Current portion of operating lease liabilities 179,423 177,233 171,568
Accounts payable 1,226,490 1,195,697 1,243,286
Accrued expenses and other current liabilities 774,235 767,411 719,291
Total current liabilities 2,591,148 2,545,341 2,484,145
Long-term operating lease liabilities 2,075,058 2,058,797 2,118,467
Long-term debt 448,135 447,880 699,406
Deferred income taxes 64,095 57,024 64,354
Other non-current liabilities 194,171 194,077 167,281
Commitments and contingencies (see Note 5)
STOCKHOLDERS’ EQUITY      
Preferred stock; par value $0.01; 5,000 shares authorized, and no shares issued 0 0 0
Common stock, par value $0.01; 300,000 shares authorized, 147,443 shares issued and 133,720 outstanding at July 29, 2023; 146,347 shares issued and 133,903 outstanding at January 28, 2023; and 146,157 shares issued and 135,052 outstanding at July 30, 2022 1,474 1,463 1,461
Additional paid-in capital 983,366 958,555 928,548
Retained earnings 891,892 644,490 384,770
Accumulated other comprehensive income 1,049 1,550 2,010
Treasury stock, at cost, 13,723 shares at July 29, 2023; 12,444 shares at January 28, 2023; and 11,105 shares at July 30, 2022 (646,492) (559,221) (463,198)
Total stockholders’ equity 1,231,289 1,046,837 853,591
Total liabilities and stockholders’ equity $ 6,603,896 $ 6,349,956 $ 6,387,244
v3.23.2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares
Jul. 29, 2023
Jan. 28, 2023
Jul. 30, 2022
Statement of Financial Position [Abstract]      
Preferred stock, par value (in USD per share) $ 0.01 $ 0.01 $ 0.01
Preferred stock, authorized (in shares) 5,000,000 5,000,000 5,000,000
Preferred stock, issued (in shares) 0 0 0
Common stock, par value (in USD per share) $ 0.01 $ 0.01 $ 0.01
Common stock, authorized (in shares) 300,000,000 300,000,000 300,000,000
Common stock, issued (in shares) 147,443,000 146,347,000 146,157,000
Common stock, outstanding (in shares) 133,720,000 133,903,000 135,052,000
Treasury stock (in shares) 13,723,000 12,444,000 11,105,000
v3.23.2
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jul. 29, 2023
Jul. 30, 2022
Jul. 29, 2023
Jul. 30, 2022
Total revenues $ 4,963,540 $ 5,103,816 $ 9,686,682 $ 9,600,251
Cost of sales 4,066,727 4,243,769 7,909,877 7,949,043
Selling, general and administrative expenses 694,960 651,236 1,384,288 1,287,180
Pre-opening expenses 1,584 5,901 5,478 10,801
Operating income 200,269 202,910 387,039 353,227
Interest expense, net 16,274 10,874 30,964 18,715
Income from continuing operations before income taxes 183,995 192,036 356,075 334,512
Provision for income taxes 52,670 51,022 108,762 81,041
Income from continuing operations 131,325 141,014 247,313 253,471
Loss from discontinued operations, net of income taxes 0 (7) 89 (14)
Net income $ 131,325 $ 141,007 $ 247,402 $ 253,457
Income per share attributable to common stockholders—basic:        
Income from continuing operations (in USD per share) $ 0.99 $ 1.05 $ 1.86 $ 1.89
Income from discontinued operations (in USD per share) 0 0 0 0
Net income (in USD per share) 0.99 1.05 1.86 1.89
Income per share attributable to common stockholders—diluted:        
Income from continuing operations (in USD per share) 0.97 1.03 1.82 1.86
Income from discontinued operations (in USD per share) 0 0 0.01 (0.01)
Net income (in USD per share) $ 0.97 $ 1.03 $ 1.83 $ 1.85
Weighted-average shares of common stock outstanding:        
Basic (in shares) 133,317,000 134,341,000 133,314,000 134,293,000
Diluted (in shares) 135,129,000 136,567,000 135,515,000 136,635,000
Other comprehensive income:        
Amounts reclassified from accumulated other comprehensive income, net of tax     $ (501) $ 117
Unrealized gain on cash flow hedge, net of income tax provision of $229, at July 30, 2022     0 588
Total other comprehensive income $ 0 $ 0 (501) 705
Total comprehensive income 131,325 141,007 246,901 254,162
Net sales        
Total revenues 4,859,842 5,005,030 9,480,462 9,404,840
Membership        
Total revenues $ 103,698 $ 98,786 $ 206,220 $ 195,411
v3.23.2
Condensed Consolidated Statements of Operations and Comprehensive Income (Parentheticals)
$ in Thousands
6 Months Ended
Jul. 30, 2022
USD ($)
Income Statement [Abstract]  
Unrealized gain on cash flow hedge, tax provision $ 229
v3.23.2
Condensed Consolidated Statements of Stockholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Income
Treasury Stock
Balance at beginning of period (in shares) at Jan. 29, 2022   145,451        
Balance at beginning of period at Jan. 29, 2022 $ 648,108 $ 1,454 $ 902,704 $ 131,313 $ 1,305 $ (388,668)
Treasury stock at beginning of period (in shares) at Jan. 29, 2022           (9,945)
Net income 112,450     112,450    
Amounts reclassified from accumulated other comprehensive income, net of tax 117       117  
Unrealized gain on cash flow hedge, net of tax 588       588  
Common stock issued under stock incentive plans (in shares)   490        
Common stock issued under stock incentive plans 0 $ 5 (5)      
Stock-based compensation expense 9,115   9,115      
Exercise of stock options 2,306   2,306      
Acquisition of treasury stock (in shares)           (801)
Acquisition of treasury stock (51,342)         $ (51,342)
Balance at end of period (in shares) at Apr. 30, 2022   145,941        
Balance at end of period at Apr. 30, 2022 721,342 $ 1,459 914,120 243,763 2,010 $ (440,010)
Treasury stock at end of period (in shares) at Apr. 30, 2022           (10,746)
Balance at beginning of period (in shares) at Jan. 29, 2022   145,451        
Balance at beginning of period at Jan. 29, 2022 648,108 $ 1,454 902,704 131,313 1,305 $ (388,668)
Treasury stock at beginning of period (in shares) at Jan. 29, 2022           (9,945)
Net income 253,457          
Amounts reclassified from accumulated other comprehensive income, net of tax 117          
Unrealized gain on cash flow hedge, net of tax $ 588          
Balance at end of period (in shares) at Jul. 30, 2022 135,052 146,157        
Balance at end of period at Jul. 30, 2022 $ 853,591 $ 1,461 928,548 384,770 2,010 $ (463,198)
Treasury stock at end of period (in shares) at Jul. 30, 2022 (11,105)         (11,105)
Balance at beginning of period (in shares) at Apr. 30, 2022   145,941        
Balance at beginning of period at Apr. 30, 2022 $ 721,342 $ 1,459 914,120 243,763 2,010 $ (440,010)
Treasury stock at beginning of period (in shares) at Apr. 30, 2022           (10,746)
Net income 141,007     141,007    
Common stock issued under stock incentive plans (in shares)   172        
Common stock issued under stock incentive plans 0 $ 2 (2)      
Common stock issued under ESPP (in shares)   44        
Common stock issued under ESPP 2,331   2,331      
Stock-based compensation expense 9,387   9,387      
Exercise of stock options 2,712   2,712      
Acquisition of treasury stock (in shares)           (359)
Acquisition of treasury stock $ (23,188)         $ (23,188)
Balance at end of period (in shares) at Jul. 30, 2022 135,052 146,157        
Balance at end of period at Jul. 30, 2022 $ 853,591 $ 1,461 928,548 384,770 2,010 $ (463,198)
Treasury stock at end of period (in shares) at Jul. 30, 2022 (11,105)         (11,105)
Balance at beginning of period (in shares) at Jan. 28, 2023 133,903 146,347        
Balance at beginning of period at Jan. 28, 2023 $ 1,046,837 $ 1,463 958,555 644,490 1,550 $ (559,221)
Treasury stock at beginning of period (in shares) at Jan. 28, 2023 (12,444)         (12,444)
Net income $ 116,077     116,077    
Amounts reclassified from accumulated other comprehensive income, net of tax (501)       (501)  
Common stock issued under stock incentive plans (in shares)   1,033        
Common stock issued under stock incentive plans 0 $ 10 (10)      
Stock-based compensation expense 10,007   10,007      
Exercise of stock options 1,675   1,675      
Acquisition of treasury stock (in shares)           (560)
Acquisition of treasury stock (42,369)         $ (42,369)
Balance at end of period (in shares) at Apr. 29, 2023   147,380        
Balance at end of period at Apr. 29, 2023 $ 1,131,726 $ 1,473 970,227 760,567 1,049 $ (601,590)
Treasury stock at end of period (in shares) at Apr. 29, 2023           (13,004)
Balance at beginning of period (in shares) at Jan. 28, 2023 133,903 146,347        
Balance at beginning of period at Jan. 28, 2023 $ 1,046,837 $ 1,463 958,555 644,490 1,550 $ (559,221)
Treasury stock at beginning of period (in shares) at Jan. 28, 2023 (12,444)         (12,444)
Net income $ 247,402          
Amounts reclassified from accumulated other comprehensive income, net of tax (501)          
Unrealized gain on cash flow hedge, net of tax $ 0          
Balance at end of period (in shares) at Jul. 29, 2023 133,720 147,443        
Balance at end of period at Jul. 29, 2023 $ 1,231,289 $ 1,474 983,366 891,892 1,049 $ (646,492)
Treasury stock at end of period (in shares) at Jul. 29, 2023 (13,723)         (13,723)
Balance at beginning of period (in shares) at Apr. 29, 2023   147,380        
Balance at beginning of period at Apr. 29, 2023 $ 1,131,726 $ 1,473 970,227 760,567 1,049 $ (601,590)
Treasury stock at beginning of period (in shares) at Apr. 29, 2023           (13,004)
Net income 131,325     131,325    
Common stock issued under stock incentive plans (in shares)   2        
Common stock issued under ESPP (in shares)   61        
Common stock issued under ESPP 3,255 $ 1 3,254      
Stock-based compensation expense 9,624   9,624      
Exercise of stock options 261   261      
Acquisition of treasury stock (in shares)           (719)
Acquisition of treasury stock $ (44,902)         $ (44,902)
Balance at end of period (in shares) at Jul. 29, 2023 133,720 147,443        
Balance at end of period at Jul. 29, 2023 $ 1,231,289 $ 1,474 $ 983,366 $ 891,892 $ 1,049 $ (646,492)
Treasury stock at end of period (in shares) at Jul. 29, 2023 (13,723)         (13,723)
v3.23.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
6 Months Ended
Jul. 29, 2023
Jul. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 247,402 $ 253,457
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 109,015 97,093
Amortization of debt issuance costs and accretion of original issue discount 655 1,663
Debt extinguishment charges 0 389
Stock-based compensation expense 19,631 18,502
Deferred income tax provision 10,641 12,212
Changes in operating leases and other non-cash items 762 32,067
Increase (decrease) in cash due to changes in:    
Accounts receivable 39,797 (29,605)
Merchandise inventories (161,957) (45,519)
Prepaid expenses and other current assets (14,083) 1,097
Other assets (8,038) (1,858)
Accounts payable 30,793 130,503
Accrued expenses and other current liabilities (3,606) (31,019)
Other non-current liabilities (1,512) 4,070
Net cash provided by operating activities 269,500 443,052
CASH FLOWS FROM INVESTING ACTIVITIES    
Additions to property and equipment, net of disposals (214,240) (191,534)
Proceeds from sale-leaseback transactions 5,988 2,674
Acquisitions 0 (376,521)
Net cash used in investing activities (208,252) (565,381)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payments on long-term debt 0 (50,000)
Proceeds from revolving lines of credit 312,000 905,000
Payments on revolving lines of credit (306,000) (555,000)
Debt issuance costs paid 0 (2,701)
Net cash received from stock option exercises 1,571 5,018
Net cash received from ESPP 3,255 2,331
Acquisition of treasury stock (87,271) (74,530)
Proceeds from financing obligations 9,058 13,083
Other financing activities (1,566) (2,627)
Net cash (used in) provided by financing activities (68,953) 240,574
Net (decrease) increase in cash and cash equivalents (7,705) 118,245
Cash and cash equivalents at beginning of period 33,915 45,436
Cash and cash equivalents at end of period 26,210 163,681
Supplemental cash flow information:    
Interest paid 28,509 15,689
Income taxes paid 113,016 81,512
Operating lease liabilities arising from obtaining right-of-use assets and other non-cash lease-related operating items 111,465 181,411
Non-cash financing and investing activities:    
Finance lease liabilities arising from obtaining right-of-use assets 1,449 0
Property additions included in accrued expenses $ 30,535 $ 19,489
v3.23.2
Description of Business
6 Months Ended
Jul. 29, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business Description of Business
BJ’s Wholesale Club Holdings, Inc. and its wholly-owned subsidiaries is a leading warehouse club operator concentrated primarily in the eastern half of the United States. As of July 29, 2023, the Company operated 238 warehouse clubs and 168 gas stations in 19 states.
The Company follows and reports based on the National Retail Federation’s fiscal calendar. The thirteen-week periods ended July 29, 2023 and July 30, 2022 are referred to herein as the "second quarter of fiscal year 2023" and the "second quarter of fiscal year 2022," respectively.
v3.23.2
Summary of Significant Accounting Policies
6 Months Ended
Jul. 29, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation
The accompanying interim financial statements of BJ’s Wholesale Club Holdings, Inc. are unaudited and, in the opinion of management, reflect all normal recurring adjustments considered necessary for a fair statement of the Company’s financial statements in accordance with GAAP. 
The condensed consolidated balance sheet as of January 28, 2023 is derived from the audited consolidated balance sheet as of that date. The unaudited results of operations for the second quarter of fiscal year 2023 are not necessarily indicative of future results or results to be expected for fiscal year 2023. The Company’s business, in common with the business of retailers generally, is subject to seasonal influences. The Company’s sales and operating income have typically been highest in the fourth quarter holiday season and lowest in the first quarter of each fiscal year. 
These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year 2022, as filed with the Securities and Exchange Commission on March 16, 2023.
Recent Accounting Pronouncements and Policies
The Company’s accounting policies are set forth in the audited financial statements included in the Company’s Annual Report on Form 10-K for fiscal year 2022. There have been no material changes to these accounting policies and no accounting pronouncements adopted that had a material impact on the Company’s financial statements.
v3.23.2
Revenue Recognition
6 Months Ended
Jul. 29, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Performance Obligations
The Company identifies each distinct performance obligation to transfer goods (or bundle of goods) or services. The Company recognizes revenue as it satisfies a performance obligation by transferring control of the goods or services to the customer.
Net sales—The Company recognizes net sales at clubs and gas stations when the customer takes possession of the goods and tenders payment. Sales tax is recorded as a liability at the point of sale. Revenue is recorded at the point of sale based on the transaction price on the shelf sign, net of any applicable discounts, sales tax and expected refunds. For e-commerce sales, the Company recognizes sales when control of the merchandise is transferred to the customer, which is typically at the time of shipment. The following table summarizes the Company’s point of sale transactions at clubs and gas stations, excluding sales tax, as a percentage of both net sales and total revenues:
Thirteen Weeks Ended
Twenty-six Weeks Ended
July 29, 2023July 30, 2022July 29, 2023July 30, 2022
Point of sale transactions, excluding sales tax, as a percent of net sales92 %92 %91 %92 %
Point of sale transactions, excluding sales tax, as a percent of total revenues90 %90 %89 %90 %
BJ’s Perks Rewards and My BJ’s Perks programs—The Company’s BJ’s Perks Rewards membership program which was in place in fiscal year 2022 and the first month of fiscal year 2023, allowed participating members to earn 2% cash back, up to a maximum of $500 per year, on qualified purchases made at BJ’s. The Company also offered a co-branded credit card program, the My BJ’s Perks program, which allowed My BJ’s Perks Mastercard credit card holders to earn up to a 10 cent-per-gallon discount on gasoline, up to 5% cash back on eligible purchases made at BJ’s and up to 2% cash back on purchases made with the card outside of BJ’s. Cash back was in the form of electronic awards issued in $10 increments that could be used online or in-club at the register and expired six months from the date issued. 
In the first quarter of fiscal year 2023, the Company rebranded the rewards program. The former BJ's Perks Rewards membership program is now the Club+ program, whereby participating members earn 2% cash back, up to a maximum of $500 per year, on qualified purchases made at BJs and a 5 cent-per-gallon discount at BJ's gas locations. Cash back is in the form of electronic awards issued to each member once $10 in rewards have been earned. The Company's co-branded credit card program is now the BJ's One and BJ's One+ program, which allows cardholders with the opportunity to earn up to 5% cash back on purchases made in BJ's clubs or online at bjs.com and up to a 15 cent-per-gallon discount on gasoline when paying with a BJ's One or BJ's One+ Mastercard at our BJ’s gas locations. Cash back is in the form of electronic awards issued to each member monthly on their credit card statement date. Earned rewards under these two programs do not expire.
The Company accounts for these transactions as multiple element arrangements and allocates the transaction price to separate performance obligations using their relative fair values. The Company includes the fair value of award dollars earned in deferred revenue at the time the award dollars are earned. This liability was $43.1 million at July 29, 2023, $34.7 million at January 28, 2023, and $40.0 million at July 30, 2022 and is included in accrued expenses and other current liabilities in the condensed consolidated balance sheets. Earned awards may be redeemed on future purchases made at the Company. The Company recognizes revenue for earned awards when customers redeem such awards as part of a purchase at one of the Company’s clubs or on the Company’s website or mobile app. During the twenty-six weeks ended July 29, 2023, the Company recognized $34.7 million of revenue that was included in the deferred liability as of January 28, 2023. The Company expects to recognize $43.1 million of deferred revenue during the remainder of fiscal year 2023. During the twenty-six weeks ended July 30, 2022, the Company recognized $30.3 million that was included in the deferred liability as of January 29, 2022.
The Company’s total deferred royalty revenue related to the outstanding My BJ's Perks and BJ's One and BJ's One+ credit card program was $5.6 million, $17.9 million, and $28.5 million at July 29, 2023, January 28, 2023, and July 30, 2022, respectively, and is included in accrued expenses and other current liabilities in the condensed consolidated balance sheets. The timing of revenue recognition of these awards is driven by actual customer activities, such as reward redemptions and expirations. During the twenty-six weeks ended July 29, 2023, the Company recognized $17.9 million of revenue that was included in the deferred liability as of January 28, 2023. As of July 29, 2023, the Company expects to recognize $5.6 million of deferred revenue during the remainder of fiscal year 2023.
In connection with the new co-brand credit card program, the Company had deferred revenue of approximately $11.9 million and $18.9 million for funds received related to marketing and other integration costs as of July 29, 2023 and January 28, 2023, respectively. During the twenty-six weeks ended July 29, 2023, the Company recognized $5.0 million of revenue that was included in the deferred liability as of January 28, 2023, related to these marketing and other integration costs. The Company expects to recognize approximately $2.1 million of deferred revenue during the remainder of fiscal year 2023, which is included in accrued expenses and other current liabilities. The Company expects to recognize approximately $9.8 million thereafter, of which $2.6 million is included in accrued expenses and other current liabilities and $7.2 million is included in other non-current liabilities in the condensed consolidated balance sheets.
Membership—The Company charges a membership fee to its customers, which allows customers to shop in the Company’s clubs, shop on the Company’s website, and purchase gasoline at the Company’s gas stations for the duration of the membership, which is generally 12 months. As the Company has the obligation to provide access to its clubs, website, and gas stations for the duration of the membership term, the Company recognizes membership fees on a straight-line basis over the life of the membership. The Company’s deferred revenue related to membership fees was $195.3 million, $183.7 million, and
$185.4 million at July 29, 2023, January 28, 2023, and July 30, 2022, respectively, and is included in accrued expenses and other current liabilities in the condensed consolidated balance sheets.
Gift Card Programs—The Company sells BJ’s gift cards that allow customers to redeem the card for future purchases equal to the amount of the face value of the gift card. Revenue from gift card sales is recognized upon redemption of the gift card because the Company’s performance obligation to redeem the gift card for merchandise is satisfied when the gift card is redeemed. Deferred revenue related to gift cards was $13.4 million, $14.1 million, and $11.9 million at July 29, 2023, January 28, 2023, and July 30, 2022, respectively. The Company recognized $10.9 million and $12.7 million of revenue from gift card redemptions in the second quarters of fiscal years 2023 and 2022, respectively. The Company recognized $22.5 million and $23.2 million of revenue from gift card redemptions in the twenty-six weeks ended July 29, 2023 and July 30, 2022, respectively.
Disaggregation of Revenue
The Company’s club retail operations, which include retail club and other sales procured from our clubs and distribution centers, represent substantially all of its consolidated total revenues, and are the Company’s only reportable segment. All the Company’s identifiable assets are in the United States. The Company does not have significant sales outside the United States, nor does any customer represent more than 10% of total revenues for any period presented.
The following table summarizes the Company’s percentage of net sales disaggregated by category:
Thirteen Weeks EndedTwenty-six Weeks Ended
July 29, 2023July 30, 2022July 29, 2023July 30, 2022
Grocery70 %64 %71 %65 %
General Merchandise and Services11 %12 %10 %12 %
Gasoline and Other19 %24 %19 %23 %
v3.23.2
Debt and Credit Arrangements
6 Months Ended
Jul. 29, 2023
Debt Disclosure [Abstract]  
Debt and Credit Arrangements Debt and Credit Arrangements
The following table summarizes the Company’s debt (in thousands):
July 29, 2023January 28, 2023July 30, 2022
ABL Revolving Facility$411,000 $405,000 $350,000 
First Lien Term Loan450,000 450,000 701,920 
Unamortized original issue discount and debt issuance costs(1,865)(2,120)(2,514)
Less: Short-term debt(411,000)(405,000)(350,000)
Long-term debt$448,135 $447,880 $699,406 
ABL Revolving Facility
On July 28, 2022, the Company entered into the ABL Revolving Facility with an ABL Revolving Commitment of $1.2 billion pursuant to that certain credit agreement (the "Credit Agreement") with Bank of America, N.A., as administrative agent and collateral agent, and the other lenders party thereto. The maturity date of the ABL Revolving Facility is July 28, 2027. In connection with this transaction, the Company extinguished the previous senior secured asset based revolving credit and term facility.
Revolving loans under the ABL Revolving Facility are available in an aggregate amount equal to the lesser of the aggregate ABL Revolving Commitment or a borrowing base based on the value of certain inventory, accounts and credit card receivables, subject to specified advance rebates and reserves as set forth in the Credit Agreement. Indebtedness under the ABL Revolving Facility is secured by substantially all of the assets (other than real estate) of the Company and its subsidiaries, subject to customary exceptions. As amended, interest on the ABL Revolving Facility is calculated either at the SOFR plus a range of 100 to 125 basis points or a base rate plus 0 to 25 basis points, based on excess availability. The Company will also pay an unused commitment fee of 20 basis points per annum on the unused ABL Revolving Commitment. Each borrowing is
for a period of one, three, or six months, as selected by the Company, or for such other period that is twelve months or less requested by the Company and consented to by the lenders and administrative agent.
The ABL Revolving Facility places certain restrictions (i.e., covenants) upon the Borrower’s, and its subsidiaries’, ability to, among other things, incur additional indebtedness, pay dividends and make certain loans, investments, and divestitures. The ABL Revolving Facility contains customary events of default (including payment defaults, cross-defaults to certain of the Company's other indebtedness, breach of representations and covenants and change of control). The occurrence of an event of default under the ABL Revolving Facility would permit the lenders to accelerate the indebtedness and terminate the ABL Revolving Facility.
As of July 29, 2023, there was $411.0 million outstanding in loans under the ABL Revolving Facility and $11.3 million in outstanding letters of credit. The interest rate on the ABL Revolving Facility was 6.42% and unused capacity was $726.2 million.
First Lien Term Loan
On January 5, 2023, the Company entered into the Third Amendment to the First Lien Term Loan Credit Agreement, with Nomura Corporate Funding Americas, LLC, as administrative agent and collateral agent and the lenders party thereto. BofA Securities, Inc., Deutsche Bank Securities Inc., and Wells Fargo Securities LLC acted as joint lead arrangers and joint bookrunners of the Third Amendment.
The Third Amendment, among other things, extended the maturity date with respect to the term loans outstanding under the First Lien Term Loan Credit Agreement from February 3, 2024 to February 3, 2027. In addition, the Third Amendment transitioned the interest rate, immediately, from LIBOR to SOFR and changed the applicable margin from LIBOR plus 200 – 225 basis points per annum to SOFR plus 275 basis points per annum.
Voluntary prepayments are permitted. Principal payments must be made on the First Lien Term Loan pursuant to an annual excess cash flow calculation when the net leverage ratio exceeds 3.50 to 1.00. As of July 29, 2023, the Company's net leverage ratio did not exceed 3.50 to 1.00, and therefore, no incremental principal payments were required. The First Lien Term Loan is subject to certain affirmative and negative covenants but no financial covenants. It is secured on a senior basis by certain "fixed assets" of the Company and on a junior basis by certain "liquid" assets of the Company.
There was $450.0 million outstanding on the First Lien Term Loan at July 29, 2023 and January 28, 2023, and $701.9 million outstanding at July 30, 2022. The interest rates were 7.89%, 7.11%, and 3.96% at July 29, 2023, January 28, 2023, and July 30, 2022, respectively.
v3.23.2
Commitments and Contingencies
6 Months Ended
Jul. 29, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and ContingenciesThe Company is involved in various legal proceedings that are typical of a retail business. In accordance with applicable accounting guidance, an accrual will be established for legal proceedings if and when those matters present loss contingencies that are both probable and estimable. The Company does not believe the resolution of any current proceedings will result in a material loss to the condensed consolidated financial statements.
v3.23.2
Stock Incentive Plans
6 Months Ended
Jul. 29, 2023
Share-Based Payment Arrangement [Abstract]  
Stock Incentive Plans Stock Incentive Plans
On June 13, 2018, the Company’s board of directors adopted, and its stockholders approved, the BJ’s Wholesale Club Holdings, Inc. 2018 Incentive Award Plan (the "2018 Plan"). The 2018 Plan provides for the grant of stock options, restricted stock, dividend equivalents, stock payments, restricted stock units, performance shares, other incentive awards, stock appreciation rights, and cash awards. Prior to the adoption of the 2018 Plan, the Company granted stock-based compensation to employees and non-employee directors under the Fourth Amended and Restated 2011 Stock Option Plan of BJ’s Wholesale Club, Inc. (f/k/a Beacon Holding Inc.), as amended (the "2011 Plan") and the 2012 Director Stock Option Plan of BJ’s Wholesale Club Holdings, Inc. (f/k/a Beacon Holding, Inc.), as amended (the "2012 Director Plan"). No further grants will be made under the 2011 Plan or the 2012 Director Plan.
The 2018 Plan authorizes the issuance of 13,148,058 shares, including 985,369 shares that were reserved but not issued under the 2011 Plan and the 2012 Director Plan. If an award under the 2018 Plan, the 2011 Plan, or the 2012 Director Plan is forfeited, expires, or is settled for cash, any shares subject to such award may, to the extent of such forfeiture, expiration, or
cash settlement, be used again for new grants under the 2018 Plan. Additionally, shares tendered or withheld to satisfy grant or exercise price, or tax withholding obligations associated with an award under the 2018 Plan, the 2011 Plan, or the 2012 Director Plan will be added to the shares authorized for grant under the 2018 Plan. The following shares may not be used again for grant under the 2018 Plan: (1) shares subject to a stock appreciation right ("SAR") that are not issued in connection with the stock settlement of the SAR upon its exercise and (2) shares purchased on the open market with the cash proceeds from the exercise of options under the 2018 Plan, 2011 Plan, or 2012 Director Plan. As of July 29, 2023, there were 4,916,649 shares available for future issuance under the 2018 Plan.
The following table summarizes the Company’s stock award activity during the twenty-six weeks ended July 29, 2023 (shares in thousands):
Stock OptionsRestricted StockRestricted Stock UnitsPerformance Stock
SharesWeighted-
Average
Exercise
Price
SharesWeighted-
Average
Grant
Date Fair
Value
SharesWeighted-
Average
Grant
Date Fair
Value
SharesWeighted-
Average
Grant
Date Fair
Value
Outstanding, January 28, 20231,788 $20.35 750 $50.10 24 $58.61 854 $45.70 
Granted (a)
— — 322 76.07 22 62.13 503 76.07 
Forfeited/canceled— — (39)63.09 (5)58.61 (40)58.81 
Exercised/vested(93)20.85 (386)42.94 (19)58.61 (640)24.35 
Outstanding, July 29, 20231,695 $20.33 647 $66.50 22 $62.13 677 $58.84 
(a)     Includes 320 incremental Performance Stock awards granted in fiscal year 2020 with a weighted-average grant date fair value of $24.35, that vested in fiscal year 2023 at greater than 100% of target based on performance.
Stock-based compensation expense was $9.6 million and $9.4 million for the thirteen weeks ended July 29, 2023 and July 30, 2022, respectively, and $19.6 million and $18.5 million for the twenty-six weeks ended July 29, 2023 and July 30, 2022, respectively.
On June 14, 2018, the Company’s board of directors adopted, and its stockholders approved, the ESPP, which became effective July 1, 2018. The aggregate number of shares of common stock that were to be reserved for issuance under the ESPP was to be equal to the sum of (i) 973,014 shares and (ii) an annual increase on the first day of each calendar year beginning in 2019 and ending in 2028 equal to the lesser of (A) 486,507 shares, (B) 0.5% of the shares outstanding (on an as converted basis) on the last day of the immediately preceding fiscal year and (C) such smaller number of shares as determined by the Company's board of directors. The amount of expense recognized related to the ESPP was $0.4 million and $0.3 million for the thirteen weeks ended July 29, 2023 and July 30, 2022, respectively, and $0.7 million and $0.5 million for the twenty-six weeks ended July 29, 2023 and July 30, 2022, respectively. As of July 29, 2023, there were 2,463,889 shares available for issuance under the ESPP.
v3.23.2
Treasury Shares and Share Repurchase Program
6 Months Ended
Jul. 29, 2023
Equity [Abstract]  
Treasury Shares and Share Repurchase Program Treasury Shares and Share Repurchase Program
Treasury Shares Acquired on Restricted Stock and Performance Stock Awards
The Company acquired 3,625 shares to satisfy employees’ tax withholding obligations upon the vesting of restricted stock awards in the thirteen weeks ended July 29, 2023, which was recorded as $0.3 million of treasury stock. The Company acquired 5,945 shares to satisfy employees' tax withholding obligations upon the vesting of restricted stock awards in the thirteen weeks ended July 30, 2022, which was recorded as $0.3 million of treasury stock.
The Company acquired 359,827 shares to satisfy employees’ tax withholding obligations upon the vesting of restricted stock and performance stock awards in the twenty-six weeks ended July 29, 2023, which was recorded as $27.4 million of treasury stock. The Company acquired 235,845 shares to satisfy employees' tax withholding obligations upon the vesting of restricted stock awards in the twenty-six weeks ended July 30, 2022, which was recorded as $15.9 million of treasury stock.
Share Repurchase Program
On November 16, 2021, the Company's board of directors approved a share repurchase program (the "2021 Repurchase Program") that allows the Company to repurchase up to $500.0 million of its outstanding common stock from time to time as
market conditions warrant. The 2021 Repurchase Program expires in January 2025. The Company initiated the 2021 Repurchase Program to mitigate potentially dilutive effects of stock options and shares of restricted stock granted by the Company, in addition to enhancing shareholder value.
The Company repurchased 715,122 shares for $44.6 million and 353,000 shares for $22.8 million during the thirteen weeks ended July 29, 2023 and July 30, 2022, respectively. The Company repurchased 919,162 shares for $59.9 million and 923,506 shares for $58.6 million during the twenty-six weeks ended July 29, 2023 and July 30, 2022, respectively. As of July 29, 2023, $258.8 million remained available to purchase under the 2021 Repurchase Program.
v3.23.2
Income Taxes
6 Months Ended
Jul. 29, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company projects the estimated annual effective tax rate for fiscal year 2023 to be 28.3%, excluding the tax effect of discrete events, such as excess tax benefits from stock-based compensation, changes in tax legislation, settlements of tax audits and changes in uncertain tax positions, among others.

The Company’s effective income tax rate from continuing operations was 28.6% and 26.6% for the thirteen weeks ended July 29, 2023 and July 30, 2022, respectively, primarily due to a reduction in excess tax benefits from stock-based compensation and tax credits in the current period. For the twenty-six weeks ended July 29, 2023 and July 30, 2022, the Company's effective tax rate from continuing operations was and 30.5% and 24.2%, respectively, and the increase was primarily due to an immaterial adjustment to certain deferred tax assets related to prior periods, as well as lower excess tax benefits from stock-based compensation and lower tax credits in the current period.
The Company is subject to taxation in the U.S. federal and various state taxing jurisdictions. The Company’s tax years from 2018 forward remain open and subject to examination by the Internal Revenue Service and various state taxing authorities.
On August 16, 2022, the Inflation Reduction Act was signed into law in the United States. We currently do not expect the legislation to have a material impact on our financial statements.
v3.23.2
Fair Value Measurements
6 Months Ended
Jul. 29, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Certain assets and liabilities are required to be carried at fair value in accordance with GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
The Company uses a three-level hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:
Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: Observable inputs other than quoted market prices included in Level 1 such as quoted market prices for markets that are not active or other inputs that are observable or can be corroborated by observable market data.
Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.
Financial Assets and Liabilities
The fair value of the Company's long-term debt is estimated based on current market rates for our specific debt instrument. Judgment is required to develop these estimates. As such, the estimated fair value of long-term debt is classified within Level 2, as defined under U.S. GAAP.
The gross carrying amount and fair value of the Company’s debt at July 29, 2023 are as follows (in thousands):
Carrying AmountFair Value
First Lien Term Loan$450,000 $450,311 
ABL Revolving Facility411,000 411,000 
Total Debt$861,000 $861,311 
The gross carrying amount and fair value of the Company’s debt at January 28, 2023 are as follows (in thousands):
Carrying AmountFair Value
First Lien Term Loan$450,000 $450,482 
ABL Revolving Facility405,000 405,000 
Total Debt$855,000 $855,482 
The gross carrying amount and fair value of the Company’s debt at July 30, 2022 are as follows (in thousands):
Carrying AmountFair Value
First Lien Term Loan$701,920 $700,797 
ABL Revolving Facility350,000 350,000 
Total Debt$1,051,920 $1,050,797 
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
The Company measures certain non-financial assets and liabilities, including long-lived assets, at fair value on a non-recurring basis.
The Company believes that the carrying amounts of its other financial instruments, including cash, accounts receivable, and accounts payable, approximate their fair values due to the short-term maturities of these instruments.
v3.23.2
Earnings Per Share
6 Months Ended
Jul. 29, 2023
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The table below reconciles basic weighted-average shares of common stock outstanding to diluted weighted-average shares of common stock outstanding for the thirteen and twenty-six weeks ended July 29, 2023 and July 30, 2022 (in thousands):
Thirteen Weeks EndedTwenty-six Weeks Ended
July 29, 2023July 30, 2022July 29, 2023July 30, 2022
Weighted-average shares of common stock outstanding, used for basic computation133,317 134,341 133,314 134,293 
Plus: Incremental shares of potentially dilutive securities:1,812 2,226 2,201 2,342 
Weighted-average shares of common stock and dilutive potential shares of common stock outstanding135,129 136,567 135,515 136,635 
The table below summarizes awards that were excluded from the computation of diluted earnings for the thirteen and twenty-six weeks ended July 29, 2023 and July 30, 2022, as their inclusion would have been anti-dilutive (in thousands):
Thirteen Weeks EndedTwenty-six Weeks Ended
July 29, 2023July 30, 2022July 29, 2023July 30, 2022
Restricted shares304 193 203 145 
Restricted stock units11 12 
v3.23.2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jul. 29, 2023
Apr. 29, 2023
Jul. 30, 2022
Apr. 30, 2022
Jul. 29, 2023
Jul. 30, 2022
Pay vs Performance Disclosure            
Net income $ 131,325 $ 116,077 $ 141,007 $ 112,450 $ 247,402 $ 253,457
v3.23.2
Insider Trading Arrangements
3 Months Ended 6 Months Ended
Jul. 29, 2023
shares
Jul. 29, 2023
shares
Trading Arrangements, by Individual    
Non-Rule 10b5-1 Arrangement Adopted false  
Non-Rule 10b5-1 Arrangement Terminated false  
Scott Kessler [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement   On May 30, 2023, Mr. Scott Kessler, our former Executive Vice President, Chief Information Officer of the Company, terminated a trading arrangement he had previously adopted with respect to the sale of securities of the Company’s common stock (a “Rule 10b5-1 Trading Plan”) in connection with his resignation from the Company. Mr. Kessler’s Rule 10b5-1 Trading Plan was adopted on March 14, 2023, had a term of one year and provided for the sale of up to 80,239 shares of common stock pursuant to the terms of the plan. As of the date of termination of his Rule 10b5-1 Trading Plan, Mr. Kessler had not sold any shares of common stock under its terms.
Name Mr. Scott Kessler  
Title Executive Vice President, Chief Information Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date March 14, 2023  
Rule 10b5-1 Arrangement Terminated true  
Termination Date May 30, 2023  
Arrangement Duration 1 year  
Aggregate Available 80,239 80,239
Laura Felice [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement   On July 12, 2023, Ms. Laura Felice, Executive Vice President, Chief Financial Officer of the Company, adopted a Rule 10b5-1 Trading Plan that is intended to satisfy the affirmative defense conditions of Securities Exchange Act Rule 10b5-1(c). Ms. Felice’s Rule 10b5-1 Trading Plan, which has a term of 11 months, provides for the sale of up to 26,586 shares of common stock pursuant to the terms of the plan.
Name Ms. Laura Felice  
Title Executive Vice President, Chief Financial Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date On July 12, 2023  
Arrangement Duration 11 months  
Aggregate Available 26,586 26,586
Jeff Desroches Trading Arrangement, January 13, 2023 [Member] | Jeff Desroches [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement   On July 13, 2023, Mr. Jeff Desroches, Executive Vice President, Chief Operations Officer of the Company, terminated a Rule 10b5-1 Trading Plan. Mr. Desroches’ Rule 10b5-1 Trading Plan was adopted on January 13, 2023, had a term of 11 months and provided for the sale of up to 12,250 shares of common stock pursuant to the terms of the plan. As of the date of termination of his Rule 10b5-1 Trading Plan, Mr. Desroches had sold 8,775 shares of common stock under its terms.
Name Mr. Jeff Desroches  
Title Executive Vice President, Chief Operations Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date January 13, 2023  
Rule 10b5-1 Arrangement Terminated true  
Termination Date July 13, 2023  
Arrangement Duration 11 months  
Aggregate Available 12,250 12,250
Jeff Desroches Trading Arrangement, July 14, 2023 [Member] | Jeff Desroches [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement   On July 14, 2023, Mr. Desroches, adopted a new Rule 10b5-1 Trading Plan that is intended to satisfy the affirmative defense conditions of Securities Exchange Act Rule 10b5-1(c). Mr. Desroches’ new Rule 10b5-1 Trading Plan, which has a term of one year, provides for the sale of up to 33,934 shares of common stock pursuant to the terms of the plan.
Name Mr. Jeff Desroches  
Title Executive Vice President, Chief Operations Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date July 14, 2023  
Arrangement Duration 1 year  
Aggregate Available 33,934 33,934
v3.23.2
Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jul. 29, 2023
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying interim financial statements of BJ’s Wholesale Club Holdings, Inc. are unaudited and, in the opinion of management, reflect all normal recurring adjustments considered necessary for a fair statement of the Company’s financial statements in accordance with GAAP. 
The condensed consolidated balance sheet as of January 28, 2023 is derived from the audited consolidated balance sheet as of that date. The unaudited results of operations for the second quarter of fiscal year 2023 are not necessarily indicative of future results or results to be expected for fiscal year 2023. The Company’s business, in common with the business of retailers generally, is subject to seasonal influences. The Company’s sales and operating income have typically been highest in the fourth quarter holiday season and lowest in the first quarter of each fiscal year. 
These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year 2022, as filed with the Securities and Exchange Commission on March 16, 2023.
Recent Accounting Pronouncements and Policies
Recent Accounting Pronouncements and Policies
The Company’s accounting policies are set forth in the audited financial statements included in the Company’s Annual Report on Form 10-K for fiscal year 2022. There have been no material changes to these accounting policies and no accounting pronouncements adopted that had a material impact on the Company’s financial statements.
v3.23.2
Revenue Recognition (Tables)
6 Months Ended
Jul. 29, 2023
Revenue from Contract with Customer [Abstract]  
Point of sale transactions as a percentage of net sales and total revenues The following table summarizes the Company’s point of sale transactions at clubs and gas stations, excluding sales tax, as a percentage of both net sales and total revenues:
Thirteen Weeks Ended
Twenty-six Weeks Ended
July 29, 2023July 30, 2022July 29, 2023July 30, 2022
Point of sale transactions, excluding sales tax, as a percent of net sales92 %92 %91 %92 %
Point of sale transactions, excluding sales tax, as a percent of total revenues90 %90 %89 %90 %
Disaggregation of revenue
The following table summarizes the Company’s percentage of net sales disaggregated by category:
Thirteen Weeks EndedTwenty-six Weeks Ended
July 29, 2023July 30, 2022July 29, 2023July 30, 2022
Grocery70 %64 %71 %65 %
General Merchandise and Services11 %12 %10 %12 %
Gasoline and Other19 %24 %19 %23 %
v3.23.2
Debt and Credit Arrangements (Tables)
6 Months Ended
Jul. 29, 2023
Debt Disclosure [Abstract]  
Schedule of debt
The following table summarizes the Company’s debt (in thousands):
July 29, 2023January 28, 2023July 30, 2022
ABL Revolving Facility$411,000 $405,000 $350,000 
First Lien Term Loan450,000 450,000 701,920 
Unamortized original issue discount and debt issuance costs(1,865)(2,120)(2,514)
Less: Short-term debt(411,000)(405,000)(350,000)
Long-term debt$448,135 $447,880 $699,406 
v3.23.2
Stock Incentive Plans (Tables)
6 Months Ended
Jul. 29, 2023
Share-Based Payment Arrangement [Abstract]  
Stock award activity
The following table summarizes the Company’s stock award activity during the twenty-six weeks ended July 29, 2023 (shares in thousands):
Stock OptionsRestricted StockRestricted Stock UnitsPerformance Stock
SharesWeighted-
Average
Exercise
Price
SharesWeighted-
Average
Grant
Date Fair
Value
SharesWeighted-
Average
Grant
Date Fair
Value
SharesWeighted-
Average
Grant
Date Fair
Value
Outstanding, January 28, 20231,788 $20.35 750 $50.10 24 $58.61 854 $45.70 
Granted (a)
— — 322 76.07 22 62.13 503 76.07 
Forfeited/canceled— — (39)63.09 (5)58.61 (40)58.81 
Exercised/vested(93)20.85 (386)42.94 (19)58.61 (640)24.35 
Outstanding, July 29, 20231,695 $20.33 647 $66.50 22 $62.13 677 $58.84 
(a)     Includes 320 incremental Performance Stock awards granted in fiscal year 2020 with a weighted-average grant date fair value of $24.35, that vested in fiscal year 2023 at greater than 100% of target based on performance.
v3.23.2
Fair Value Measurements (Tables)
6 Months Ended
Jul. 29, 2023
Fair Value Disclosures [Abstract]  
Gross carrying amount and fair value of debt
The gross carrying amount and fair value of the Company’s debt at July 29, 2023 are as follows (in thousands):
Carrying AmountFair Value
First Lien Term Loan$450,000 $450,311 
ABL Revolving Facility411,000 411,000 
Total Debt$861,000 $861,311 
The gross carrying amount and fair value of the Company’s debt at January 28, 2023 are as follows (in thousands):
Carrying AmountFair Value
First Lien Term Loan$450,000 $450,482 
ABL Revolving Facility405,000 405,000 
Total Debt$855,000 $855,482 
The gross carrying amount and fair value of the Company’s debt at July 30, 2022 are as follows (in thousands):
Carrying AmountFair Value
First Lien Term Loan$701,920 $700,797 
ABL Revolving Facility350,000 350,000 
Total Debt$1,051,920 $1,050,797 
v3.23.2
Earnings Per Share (Tables)
6 Months Ended
Jul. 29, 2023
Earnings Per Share [Abstract]  
Basic and diluted weighted-average shares of common stock outstanding
The table below reconciles basic weighted-average shares of common stock outstanding to diluted weighted-average shares of common stock outstanding for the thirteen and twenty-six weeks ended July 29, 2023 and July 30, 2022 (in thousands):
Thirteen Weeks EndedTwenty-six Weeks Ended
July 29, 2023July 30, 2022July 29, 2023July 30, 2022
Weighted-average shares of common stock outstanding, used for basic computation133,317 134,341 133,314 134,293 
Plus: Incremental shares of potentially dilutive securities:1,812 2,226 2,201 2,342 
Weighted-average shares of common stock and dilutive potential shares of common stock outstanding135,129 136,567 135,515 136,635 
Anti-dilutive restricted shares and stock options The table below summarizes awards that were excluded from the computation of diluted earnings for the thirteen and twenty-six weeks ended July 29, 2023 and July 30, 2022, as their inclusion would have been anti-dilutive (in thousands):
Thirteen Weeks EndedTwenty-six Weeks Ended
July 29, 2023July 30, 2022July 29, 2023July 30, 2022
Restricted shares304 193 203 145 
Restricted stock units11 12 
v3.23.2
Description of Business (Details)
Jul. 29, 2023
store
state
gas_station
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of stores | store 238
Number of gas stations | gas_station 168
Number of states in which entity operates | state 19
v3.23.2
Revenue Recognition - Point of Sale Transactions as a Percentage of Net Sales and Total Revenue (Details) - Revenue from Rights Concentration Risk - Point Of Sale Transaction
3 Months Ended 6 Months Ended
Jul. 29, 2023
Jul. 30, 2022
Jul. 29, 2023
Jul. 30, 2022
Net sales        
Concentration Risk [Line Items]        
Concentration risk percentage 92.00% 92.00% 91.00% 92.00%
Total revenue        
Concentration Risk [Line Items]        
Concentration risk percentage 90.00% 90.00% 89.00% 90.00%
v3.23.2
Revenue Recognition - Narrative (Details)
3 Months Ended 6 Months Ended 12 Months Ended
Jul. 29, 2023
USD ($)
Jul. 30, 2022
USD ($)
Jul. 29, 2023
USD ($)
$ / gal
Jul. 30, 2022
USD ($)
Jan. 28, 2023
USD ($)
$ / gal
Membership          
Revenue, Major Customer [Line Items]          
Percentage of cash back earned         2.00%
Maximum annual cash back amount         $ 500
Discount on gasoline (in USD per gallon) | $ / gal         0.05
Cash back in the form of electronic awards issued     $ 10   $ 10
Cash back, expiration period         6 months
Deferred revenue $ 195,300,000 $ 185,400,000 $ 195,300,000 $ 185,400,000 $ 183,700,000
Membership fee term     12 months    
Credit Card Program          
Revenue, Major Customer [Line Items]          
Percentage of cash back earned     5.00%    
Discount on gasoline (in USD per gallon) | $ / gal     0.15   0.10
Percentage of cash back earned, eligible purchases         5.00%
Percentage of cash back earned, outside purchases         2.00%
Gift Card Programs          
Revenue, Major Customer [Line Items]          
Deferred revenue 13,400,000 11,900,000 $ 13,400,000 11,900,000 $ 14,100,000
Revenue recognized, including opening balance of deferred revenue 10,900,000 12,700,000 22,500,000 23,200,000  
Rewards Program          
Revenue, Major Customer [Line Items]          
Deferred revenue 43,100,000 40,000,000 43,100,000 40,000,000 34,700,000
Revenue recognized     34,700,000 30,300,000  
Rewards Program | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-30          
Revenue, Major Customer [Line Items]          
Remaining performance obligation $ 43,100,000   $ 43,100,000    
Remaining performance obligation, timing of satisfaction 9 months   9 months    
Rewards Program, Royalty          
Revenue, Major Customer [Line Items]          
Revenue recognized     $ 17,900,000    
Remaining performance obligation $ 5,600,000 $ 28,500,000 5,600,000 $ 28,500,000 17,900,000
Rewards Program, Royalty | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-30          
Revenue, Major Customer [Line Items]          
Remaining performance obligation $ 5,600,000   $ 5,600,000    
Remaining performance obligation, timing of satisfaction 9 months   9 months    
Rewards Program, Marketing and Integration          
Revenue, Major Customer [Line Items]          
Revenue recognized     $ 5,000,000    
Remaining performance obligation $ 11,900,000   11,900,000   $ 18,900,000
Rewards Program, Marketing and Integration | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-30          
Revenue, Major Customer [Line Items]          
Remaining performance obligation $ 2,100,000   $ 2,100,000    
Remaining performance obligation, timing of satisfaction 9 months   9 months    
Rewards Program, Marketing and Integration | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-28          
Revenue, Major Customer [Line Items]          
Remaining performance obligation $ 9,800,000   $ 9,800,000    
Remaining performance obligation, timing of satisfaction      
Rewards Program, Marketing and Integration | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-28 | Accrued expenses and other current liabilities          
Revenue, Major Customer [Line Items]          
Remaining performance obligation $ 2,600,000   $ 2,600,000    
Rewards Program, Marketing and Integration | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-28 | Other non-current liabilities          
Revenue, Major Customer [Line Items]          
Remaining performance obligation $ 7,200,000   $ 7,200,000    
v3.23.2
Revenue Recognition - Percentage of Net Sales Disaggregated by Category (Details)
3 Months Ended 6 Months Ended
Jul. 29, 2023
Jul. 30, 2022
Jul. 29, 2023
Jul. 30, 2022
Grocery        
Disaggregation of Revenue [Line Items]        
Net sales percentage 70.00% 64.00% 71.00% 65.00%
General Merchandise and Services        
Disaggregation of Revenue [Line Items]        
Net sales percentage 11.00% 12.00% 10.00% 12.00%
Gasoline and Other        
Disaggregation of Revenue [Line Items]        
Net sales percentage 19.00% 24.00% 19.00% 23.00%
v3.23.2
Debt and Credit Arrangements - Debt Components (Details) - USD ($)
$ in Thousands
Jul. 29, 2023
Jan. 28, 2023
Jul. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Carrying Amount $ 861,000 $ 855,000 $ 1,051,920
Unamortized original issue discount and debt issuance costs (1,865) (2,120) (2,514)
Less: Short-term debt (411,000) (405,000) (350,000)
Long-term debt 448,135 447,880 699,406
ABL Revolving Facility      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Carrying Amount 411,000 405,000 350,000
First Lien Term Loan      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Carrying Amount $ 450,000 $ 450,000 $ 701,920
v3.23.2
Debt and Credit Arrangements - Narrative (Details)
$ in Thousands
Jan. 05, 2023
Jan. 04, 2023
Jul. 28, 2022
USD ($)
Jul. 29, 2023
USD ($)
Jan. 28, 2023
USD ($)
Jul. 30, 2022
USD ($)
Debt Instrument [Line Items]            
Amount outstanding       $ 861,000 $ 855,000 $ 1,051,920
ABL Revolving Facility            
Debt Instrument [Line Items]            
Amount outstanding       411,000 405,000 350,000
First Lien Term Loan            
Debt Instrument [Line Items]            
Amount outstanding       $ 450,000 $ 450,000 $ 701,920
Effective interest rate       7.89% 7.11% 3.96%
Revolving Credit Facility | ABL Revolving Facility            
Debt Instrument [Line Items]            
Maximum borrowing capacity     $ 1,200,000      
Commitment fee percentage     0.20%      
Amount outstanding       $ 411,000    
Interest rate at end of period       6.42%    
Unused capacity       $ 726,200    
Revolving Credit Facility | ABL Revolving Facility | Term one            
Debt Instrument [Line Items]            
Term of borrowing     1 month      
Revolving Credit Facility | ABL Revolving Facility | Term two            
Debt Instrument [Line Items]            
Term of borrowing     3 months      
Revolving Credit Facility | ABL Revolving Facility | Term three            
Debt Instrument [Line Items]            
Term of borrowing     6 months      
Revolving Credit Facility | ABL Revolving Facility | Term four            
Debt Instrument [Line Items]            
Term of borrowing     12 months      
Revolving Credit Facility | ABL Revolving Facility | Minimum | Secured Overnight Financing Rate (SOFR)            
Debt Instrument [Line Items]            
Basis spread on variable rate     1.00%      
Revolving Credit Facility | ABL Revolving Facility | Minimum | Base Rate            
Debt Instrument [Line Items]            
Basis spread on variable rate     0.00%      
Revolving Credit Facility | ABL Revolving Facility | Maximum | Secured Overnight Financing Rate (SOFR)            
Debt Instrument [Line Items]            
Basis spread on variable rate     1.25%      
Revolving Credit Facility | ABL Revolving Facility | Maximum | Base Rate            
Debt Instrument [Line Items]            
Basis spread on variable rate     0.25%      
Letter of Credit | ABL Revolving Facility            
Debt Instrument [Line Items]            
Amount outstanding       $ 11,300    
Term Loan | First Lien Term Loan | Line of Credit            
Debt Instrument [Line Items]            
Net leverage ratio 0.0350          
Term Loan | First Lien Term Loan | Line of Credit | Secured Overnight Financing Rate (SOFR)            
Debt Instrument [Line Items]            
Basis spread on variable rate 2.75%          
Term Loan | First Lien Term Loan | Line of Credit | Minimum | LIBOR            
Debt Instrument [Line Items]            
Basis spread on variable rate   2.00%        
Term Loan | First Lien Term Loan | Line of Credit | Maximum | LIBOR            
Debt Instrument [Line Items]            
Basis spread on variable rate   2.25%        
v3.23.2
Stock Incentive Plans - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jul. 29, 2023
Jul. 30, 2022
Jul. 29, 2023
Jul. 30, 2022
Jun. 14, 2018
Jun. 13, 2018
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Stock-based compensation expense $ 9.6 $ 9.4 $ 19.6 $ 18.5    
The 2018 Plan            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Shares authorized for issuance (in shares)           13,148,058
The 2011 Plan and 2012 Director Plan            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Shares reserved for issuance (in shares)           985,369
Shares available for future issuance (in shares) 4,916,649   4,916,649      
Employee Stock Purchase Plan            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]            
Shares reserved for issuance (in shares) 2,463,889   2,463,889      
Stock-based compensation expense $ 0.4 $ 0.3 $ 0.7 $ 0.5    
Shares reserved for issuance (in shares)         973,014  
Shares reserved for issuance, annual increase (in shares)         486,507  
Shares reserved for issuance, annual increase percentage         0.50%  
v3.23.2
Stock Incentive Plans - Stock Award Activity (Details)
shares in Thousands
6 Months Ended
Jul. 29, 2023
$ / shares
shares
Stock Options  
Shares  
Outstanding (in shares) | shares 1,788
Granted (in shares) | shares 0
Forfeited/canceled (in shares) | shares 0
Exercised/vested (in shares) | shares (93)
Outstanding (in shares) | shares 1,695
Weighted- Average Exercise Price  
Outstanding (in USD per share) | $ / shares $ 20.35
Granted (in USD per share) | $ / shares 0
Forfeited/canceled (in USD per share) | $ / shares 0
Exercised/vested (in USD per share) | $ / shares 20.85
Outstanding (in USD per share) | $ / shares $ 20.33
Restricted Stock  
Shares  
Outstanding (in shares) | shares 750
Granted (in shares) | shares 322
Forfeited/canceled (in shares) | shares (39)
Exercised/vested (in shares) | shares (386)
Outstanding (in shares) | shares 647
Weighted- Average Grant Date Fair Value  
Outstanding (in USD per share) | $ / shares $ 50.10
Granted (in USD per share) | $ / shares 76.07
Forfeited/canceled (in USD per share) | $ / shares 63.09
Exercised/vested (in USD per share) | $ / shares 42.94
Outstanding (in USD per share) | $ / shares $ 66.50
Restricted Stock Units  
Shares  
Outstanding (in shares) | shares 24
Granted (in shares) | shares 22
Forfeited/canceled (in shares) | shares (5)
Exercised/vested (in shares) | shares (19)
Outstanding (in shares) | shares 22
Weighted- Average Grant Date Fair Value  
Outstanding (in USD per share) | $ / shares $ 58.61
Granted (in USD per share) | $ / shares 62.13
Forfeited/canceled (in USD per share) | $ / shares 58.61
Exercised/vested (in USD per share) | $ / shares 58.61
Outstanding (in USD per share) | $ / shares $ 62.13
Performance Stock  
Shares  
Outstanding (in shares) | shares 854
Granted (in shares) | shares 503
Forfeited/canceled (in shares) | shares (40)
Exercised/vested (in shares) | shares (640)
Outstanding (in shares) | shares 677
Weighted- Average Grant Date Fair Value  
Outstanding (in USD per share) | $ / shares $ 45.70
Granted (in USD per share) | $ / shares 76.07
Forfeited/canceled (in USD per share) | $ / shares 58.81
Exercised/vested (in USD per share) | $ / shares 24.35
Outstanding (in USD per share) | $ / shares $ 58.84
Performance Stock, Vested at Greater than 100% of Target  
Shares  
Granted (in shares) | shares 320
Weighted- Average Grant Date Fair Value  
Granted (in USD per share) | $ / shares $ 24.35
Performance target (greater than) 100.00%
v3.23.2
Treasury Shares and Share Repurchase Program (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jul. 29, 2023
Apr. 29, 2023
Jul. 30, 2022
Apr. 30, 2022
Jul. 29, 2023
Jul. 30, 2022
Nov. 16, 2021
Equity [Abstract]              
Shares reacquired to satisfy tax withholding obligations (in shares) 3,625   5,945   359,827 235,845  
Shares reacquired to satisfy tax withholding obligations $ 300   $ 300   $ 27,400 $ 15,900  
Equity, Class of Treasury Stock [Line Items]              
Shares repurchased $ 44,902 $ 42,369 $ 23,188 $ 51,342      
2021 Repurchase Program              
Equity, Class of Treasury Stock [Line Items]              
Share repurchase program, amount authorized             $ 500,000
Shares repurchased (in shares) 715,122   353,000   919,162 923,506  
Shares repurchased $ 44,600   $ 22,800   $ 59,900 $ 58,600  
Share repurchase program, amount remaining available $ 258,800       $ 258,800    
v3.23.2
Income Taxes (Details)
3 Months Ended 6 Months Ended 12 Months Ended
Jul. 29, 2023
Jul. 30, 2022
Jul. 29, 2023
Jul. 30, 2022
Feb. 03, 2024
Income Tax Contingency [Line Items]          
Effective tax rate 28.60% 26.60% 30.50% 24.20%  
Forecast          
Income Tax Contingency [Line Items]          
Effective tax rate         28.30%
v3.23.2
Fair Value Measurements (Details) - USD ($)
$ in Thousands
Jul. 29, 2023
Jan. 28, 2023
Jul. 30, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Carrying Amount $ 861,000 $ 855,000 $ 1,051,920
Fair Value 861,311 855,482 1,050,797
First Lien Term Loan      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Carrying Amount 450,000 450,000 701,920
Fair Value 450,311 450,482 700,797
ABL Revolving Facility      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Carrying Amount 411,000 405,000 350,000
Fair Value $ 411,000 $ 405,000  
ABL Facility      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Carrying Amount     350,000
Fair Value     $ 350,000
v3.23.2
Earnings Per Share - Basic and Diluted Weighted-Average Shares of Common Stock Outstanding (Details) - shares
3 Months Ended 6 Months Ended
Jul. 29, 2023
Jul. 30, 2022
Jul. 29, 2023
Jul. 30, 2022
Earnings Per Share [Abstract]        
Weighted-average shares of common stock outstanding, used for basic computation (in shares) 133,317,000 134,341,000 133,314,000 134,293,000
Plus: Incremental shares of potentially dilutive securities:        
Plus: Incremental shares of potentially dilutive securities (in shares) 1,812,000 2,226,000 2,201,000 2,342,000
Weighted-average shares of common stock and dilutive potential shares of common stock outstanding (in shares) 135,129,000 136,567,000 135,515,000 136,635,000
v3.23.2
Earnings Per Share - Anti-Dilutive Restricted Shares and Stock Options (Details) - shares
shares in Thousands
3 Months Ended 6 Months Ended
Jul. 29, 2023
Jul. 30, 2022
Jul. 29, 2023
Jul. 30, 2022
Restricted shares        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Antidilutive securities excluded from computation of diluted earnings per share (in shares) 304 193 203 145
Restricted Stock Units        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Antidilutive securities excluded from computation of diluted earnings per share (in shares) 11 12 5 6