0000950170-22-021114 | 10-Q | XBRL Viewer | BIG 5 Sporting Goods Corp

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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Oct. 02, 2022	Oct. 25, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 02, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Trading Symbol	BGFV
Entity Registrant Name	BIG 5 SPORTING GOODS CORPORATION
Entity Central Index Key	0001156388
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--01-01
Entity Filer Category	Accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Stock, $0.01 par value
Security Exchange Name	NASDAQ
Entity Address, State or Province	CA
Entity File Number	000-49850
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-4388794
Entity Address, Address Line One	2525 East El Segundo Boulevard
Entity Address, City or Town	El Segundo
Entity Address, Postal Zip Code	90245
City Area Code	310
Local Phone Number	536-0611
Document Quarterly Report	true
Document Transition Report	false
Entity Common Stock, Shares Outstanding		22,184,330

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 02, 2022	Jan. 02, 2022
Current assets:
Cash and cash equivalents	$ 34,439	$ 97,420
Accounts receivable, net of allowances of $24 and $62, respectively	9,333	13,654
Merchandise inventories, net	316,464	279,981
Prepaid expenses	16,140	16,293
Total current assets	376,376	407,348
Operating lease right-of-use assets, net	285,481	270,110
Property and equipment, net	57,778	60,401
Deferred income taxes	10,452	12,097
Other assets, net of accumulated amortization of $1,243 and $905, respectively	5,193	3,997
Total assets	735,280	753,953
Current liabilities:
Accounts payable	84,626	104,359
Accrued expenses	67,765	85,041
Current portion of operating lease liabilities	78,589	76,882
Current portion of finance lease liabilities	3,446	3,518
Total current liabilities	234,426	269,800
Operating lease liabilities, less current portion	216,445	204,134
Finance lease liabilities, less current portion	5,449	6,456
Other long-term liabilities	7,020	6,254
Total liabilities	463,340	486,644
Commitments and contingencies
Stockholders' equity:
Common stock, $0.01 par value, authorized 50,000,000 shares; issued 26,491,585 and 26,109,003 shares, respectively; outstanding 22,184,330 and 22,097,467 shares, respectively	264	260
Additional paid-in capital	125,854	124,909
Retained earnings	200,079	192,261
Less: Treasury stock, at cost; 4,307,255 and 4,011,536 shares, respectively	(54,257)	(50,121)
Total stockholders' equity	271,940	267,309
Total liabilities and stockholders' equity	$ 735,280	$ 753,953

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Oct. 02, 2022	Jan. 02, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable, current	$ 24	$ 62
Accumulated amortization on other assets	$ 1,243	$ 905
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	26,491,585	26,109,003
Common stock, shares outstanding	22,184,330	22,097,467
Treasury stock, shares	4,307,255	4,011,536

Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Income Statement [Abstract]
Net sales	$ 261,445	$ 289,637	$ 757,226	$ 888,463
Cost of sales	174,862	181,660	495,844	555,670
Gross profit	86,583	107,977	261,382	332,793
Selling and administrative expense	78,205	75,147	230,150	223,670
Operating income	8,378	32,830	31,232	109,123
Interest expense	69	175	389	701
Income before income taxes	8,309	32,655	30,843	108,422
Income tax expense	1,940	8,524	6,437	25,942
Net income	$ 6,369	$ 24,131	$ 24,406	$ 82,480
Earnings per share:
Basic	$ 0.30	$ 1.11	$ 1.13	$ 3.81
Diluted	$ 0.29	$ 1.07	$ 1.10	$ 3.66
Weighted-average shares of common stock outstanding:
Basic	21,586	21,798	21,647	21,654
Diluted	21,930	22,534	22,121	22,525

Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock Outstanding [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Treasury Stock, At Cost [Member]
Beginning Balance at Jan. 03, 2021	$ 232,638		$ 255	$ 121,837	$ 153,073	$ (42,527)
Beginning Balance, Shares at Jan. 03, 2021		21,930,328
Net income	82,480				82,480
Dividends on common stock	(35,257)				(35,257)
Issuance of nonvested share awards			2	(2)
Issuance of nonvested share awards, Shares		248,550
Exercise of share option awards	1,804		3	1,801
Exercise of share option awards, Shares		318,275
Share-based compensation	1,410			1,410
Forfeiture of nonvested share awards, Shares		(15,655)
Retirement of common stock for payment of withholding tax	(1,046)			(1,046)
Retirement of common stock for payment of withholding tax, Shares		(70,228)
Purchases of treasury stock	(2,266)					(2,266)
Purchases of treasury stock, Shares		(100,498)
Ending Balance at Oct. 03, 2021	$ 279,763		260	124,000	200,296	(44,793)
Ending Balance, shares at Oct. 03, 2021	22,310,772	22,310,772
Beginning Balance at Jul. 04, 2021	$ 262,951		260	123,490	181,728	(42,527)
Beginning Balance, Shares at Jul. 04, 2021		22,420,270
Net income	24,131				24,131
Dividends on common stock	(5,563)				(5,563)
Exercise of share option awards	4			4
Exercise of share option awards, Shares		600
Share-based compensation	506			506
Forfeiture of nonvested share awards, Shares		(9,600)
Purchases of treasury stock	(2,266)					(2,266)
Purchases of treasury stock, Shares		(100,498)
Ending Balance at Oct. 03, 2021	$ 279,763		260	124,000	200,296	(44,793)
Ending Balance, shares at Oct. 03, 2021	22,310,772	22,310,772
Beginning Balance at Jan. 02, 2022	$ 267,309		260	124,909	192,261	(50,121)
Beginning Balance, Shares at Jan. 02, 2022		22,097,467
Net income	24,406				24,406
Dividends on common stock	(16,588)				(16,588)
Issuance of nonvested share awards			2	(2)
Issuance of nonvested share awards, Shares		284,630
Conversion of vested share unit awards			1	(1)
Conversion of vested share unit awards, Shares		124,012
Exercise of share option awards	$ 334		1	333
Exercise of share option awards, Shares	81,200	81,200
Share-based compensation	$ 1,827			1,827
Forfeiture of nonvested share awards, Shares		(29,920)
Retirement of common stock for payment of withholding tax	$ (1,212)			(1,212)
Retirement of common stock for payment of withholding tax, Shares	(77,340)	(77,340)
Purchases of treasury stock	$ (4,136)					(4,136)
Purchases of treasury stock, Shares		(295,719)
Ending Balance at Oct. 02, 2022	271,940		264	125,854	200,079	(54,257)
Ending Balance, shares at Oct. 02, 2022		22,184,330
Beginning Balance at Jul. 03, 2022	270,415		264	125,151	199,242	(54,242)
Beginning Balance, Shares at Jul. 03, 2022		22,176,990
Net income	6,369				6,369
Dividends on common stock	(5,532)				(5,532)
Exercise of share option awards	62			62
Exercise of share option awards, Shares		13,450
Share-based compensation	641			641
Forfeiture of nonvested share awards, Shares		(4,710)
Purchases of treasury stock	(15)					(15)
Purchases of treasury stock, Shares		(1,400)
Ending Balance at Oct. 02, 2022	$ 271,940		$ 264	$ 125,854	$ 200,079	$ (54,257)
Ending Balance, shares at Oct. 02, 2022		22,184,330

Unaudited Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Retained Earnings [Member]
Dividends per share	$ 0.25	$ 0.25	$ 0.75	$ 1.58

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021
Cash flows from operating activities:
Net income	$ 24,406	$ 82,480
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	13,424	13,121
Share-based compensation	1,827	1,410
Amortization of other assets	337	467
Loss on disposal of equipment	288
Noncash lease expense	51,374	48,996
Proceeds from insurance recovery - lost profit margin and expenses		1,083
Gain on recovery of insurance proceeds - lost profit margin and expenses		(460)
Gain on recovery of insurance proceeds - property and equipment		(249)
Deferred income taxes	1,645	(381)
Changes in operating assets and liabilities:
Accounts receivable, net	4,578	9,307
Merchandise inventories, net	(36,483)	(4,065)
Prepaid expenses and other assets	(1,380)	(172)
Accounts payable	(19,692)	1,075
Operating lease liabilities	(52,984)	(50,816)
Accrued expenses and other long-term liabilities	(17,258)	(6,603)
Net cash (used in) provided by operating activities	(29,918)	95,193
Cash flows from investing activities:
Purchases of property and equipment	(8,827)	(7,266)
Proceeds from insurance recovery - property and equipment		249
Proceeds from disposal of property and equipment	13
Net cash used in investing activities	(8,814)	(7,017)
Cash flows from financing activities:
Changes in book overdraft	388	110
Debt issuance costs paid		(717)
Principal payments under finance lease liabilities	(2,690)	(2,141)
Proceeds from exercise of share option awards	334	1,804
Cash purchases of treasury stock	(4,136)	(2,266)
Tax withholding payments for share-based compensation	(1,212)	(1,046)
Dividends paid	(16,933)	(34,568)
Net cash used in financing activities	(24,249)	(38,824)
Net (decrease) increase in cash and cash equivalents	(62,981)	49,352
Cash and cash equivalents at beginning of period	97,420	64,654
Cash and cash equivalents at end of period	34,439	114,006
Supplemental disclosures of non-cash investing and financing activities:
Property and equipment acquired under finance leases	1,611	7,318
Property and equipment additions unpaid	3,054	1,401
Supplemental disclosures of cash flow information:
Interest paid	431	424
Income taxes paid	$ 5,367	$ 26,767

Description of Business

9 Months Ended

Oct. 02, 2022

Accounting Policies [Abstract]

Description of Business

(1)

Description of Business

Big 5 Sporting Goods Corporation (the “Company”) is a leading sporting goods retailer in the western United States, operating 431 stores and an e-commerce platform as of October 2, 2022. The Company provides a full-line product offering in a traditional sporting goods store format that averages approximately 11,000 square feet. The Company’s product mix includes athletic shoes, apparel and accessories, as well as a broad selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, home recreation, tennis, golf and winter and summer recreation. The Company is a holding company that operates as one reportable segment through Big 5 Corp., its 100%-owned subsidiary, and Big 5 Services Corp., which is a 100%-owned subsidiary of Big 5 Corp. Big 5 Services Corp. provides a centralized operation for the issuance and administration of gift cards and returned merchandise credits (collectively, “stored-value cards”).

The accompanying interim unaudited condensed consolidated financial statements (“Interim Financial Statements”) of the Company and its 100%-owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and are presented in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these Interim Financial Statements do not include all of the information and notes required by GAAP for complete financial statements. These Interim Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended January 2, 2022 included in the Company’s Annual Report on Form 10-K. In the opinion of management, the Interim Financial Statements included herein contain all adjustments, including normal recurring adjustments, considered necessary to present fairly the Company’s financial position, the results of operations and cash flows for the periods presented.

The operating results and cash flows of the interim periods presented herein are not necessarily indicative of the results to be expected for any other interim period or the full year.

Summary of Significant Accounting Policies

9 Months Ended

Oct. 02, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

(2)

Summary of Significant Accounting Policies

Consolidation

The accompanying Interim Financial Statements include the accounts of Big 5 Sporting Goods Corporation, Big 5 Corp. and Big 5 Services Corp. Intercompany balances and transactions have been eliminated in consolidation.

Reporting Period

The Company follows the concept of a 52-53 week fiscal year, which ends on the Sunday nearest December 31. Fiscal year 2022 is comprised of 52 weeks and ends on January 1, 2023. Fiscal year 2021 was comprised of 52 weeks and ended on January 2, 2022. The interim periods in fiscal 2022 and 2021 are each comprised of 13 weeks.

Recently Issued Accounting Updates

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This standard provides optional guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this standard apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The amendments in this standard are elective and are effective upon issuance for all entities, and the impact from this standard is immaterial to the interim financial statements.

Other recently issued accounting updates are not expected to have a material impact on the Company’s Interim Financial Statements.

COVID-19 Impact on Concentration of Risk

In recent years, the novel coronavirus (“COVID-19”) pandemic has significantly impacted health and economic conditions throughout the United States and globally, as public concern about becoming ill with the virus has led to the issuance of recommendations and/or mandates from federal, state and local authorities to practice social distancing or self-quarantine. At the start of the COVID-19 pandemic in fiscal 2020, the Company was forced to temporarily close more than half of its retail store locations and was subsequently able to gradually reopen these stores. In the first quarter of fiscal 2021, the Company experienced a limited number of temporary store closures throughout the chain resulting from COVID-19 outbreaks. Store operating hours in the second quarter of fiscal 2022 were negatively impacted by a resurgence of COVID-related cases that led to quarantining of employees of certain stores throughout the chain, but there was less of an impact from such activity in the third quarter of fiscal 2022. As the pandemic continues to evolve, the Company may be further required to restrict the operations of its stores or distribution center if it is deemed necessary or if recommended or mandated by authorities.

A substantial amount of the Company’s inventory is manufactured abroad. COVID-19 has also impacted the Company’s supply chain for products sold, particularly those products that are sourced from Asia. To the extent one or more vendors is negatively impacted by continued supply chain disruptions or by COVID-19, including due to interruptions at or closure of those vendors’ distribution centers or manufacturing facilities, or the Company or its vendors are unable to obtain the necessary shipping capacity to transport products to the Company’s distribution center, the Company may be unable to maintain delivery schedules or adequate inventory in its stores. During the second half of fiscal 2021 and continuing into the first nine months of fiscal 2022, the Company experienced significant shipping delays of products sourced from overseas vendors to be received at the Ports of Los Angeles and Long Beach, which reflected increased shipping volume and insufficient labor resources at the ports that have significantly increased cargo backlogs. Shipping capacity constraints and labor shortages at the ports contributed to higher freight costs and adversely impacted our ability to obtain sufficient quantities of certain products in our stores to meet customer demand, although to a lesser degree in the third quarter of fiscal 2022. While our ability to obtain product has begun to improve, these factors, in addition to workforce shortages in the trucking industry, have limited the Company’s ability to obtain desired quantities of inventory for various merchandise categories. While the Company has generally been able to sufficiently stock product in its stores to meet most consumer demand during the pandemic, future prolonged and sustained delays in product reaching the Company’s stores from overseas vendors, particularly during the holiday season, could result in the inability to obtain adequate levels of merchandise inventories to meet consumers’ needs, which could have an adverse impact on net sales and profitability.

General Concentration of Risk

The Company purchases merchandise from over 700 suppliers, and the Company’s 20 largest suppliers accounted for 36.8% of total purchases in fiscal 2021. One vendor, Nike, represented greater than 5% of total purchases, at 7.6%, in fiscal 2021 and accounted for 8.7% of the Company’s total sales in fiscal 2021. In early fiscal 2021, the Company was informed of an expansion of Nike’s direct-to-consumer initiatives that impacted certain multi-branded retailers, including the Company. This has led to a significant reduction in the Company’s supply chain relative to this vendor. Although the Company is no longer purchasing products directly from Nike, the Company continues to purchase certain Nike branded products from authorized licensees. The Company has been actively expanding its relationships with other new and existing vendors in an effort to replace the affected Nike product within its product mix, which has been hampered in some instances by vendor supply chain challenges.

A substantial amount of the Company’s inventory is manufactured abroad, and shipping ports may experience capacity constraints (such as delays associated with COVID-19), labor strikes, work stoppages or other disruptions that may delay the delivery of imported products. A contract dispute may lead to protracted delays in the movement of the Company’s products, which could further delay the delivery of products to the Company’s stores and impact net sales and profitability. In addition, other conditions outside of the Company’s control, such as adverse weather conditions or acts of terrorism or war, such as the current conflict in Ukraine, could significantly disrupt operations at shipping ports or otherwise impact transportation of the imported merchandise we sell, either through supply chain disruptions, or rising freight and fuel costs.

Use of Estimates

Management makes a number of estimates and assumptions relating to the reporting of assets, liabilities and stockholders’ equity and the disclosure of contingent assets and liabilities at the date of the Interim Financial Statements and reported amounts of revenue and expense during the reporting period to prepare these Interim Financial Statements in conformity with GAAP. Certain items subject to such estimates and assumptions include the carrying amount of merchandise inventories, property and equipment, lease assets and lease liabilities; valuation allowances for receivables, sales returns and deferred income tax assets; estimates related to stored-value cards and the valuation of share-based compensation awards; and obligations related to litigation, self-insurance liabilities and employee benefits. Due to the inherent uncertainty involved in making assumptions and estimates, events and changes in circumstances arising after October 2, 2022, including those resulting from the impacts of future COVID-19 variant outbreaks, may result in actual outcomes that differ from those contemplated by management’s assumptions and estimates.

Revenue Recognition

The Company operates solely as a sporting goods retailer, which includes both retail stores and an e-commerce platform, that offers a broad range of products in the western United States and online. Generally, all revenue is recognized when control of the promised goods is transferred to customers, for an amount that reflects the consideration in exchange for those goods. Accordingly, the Company implicitly enters into a contract with customers to deliver merchandise inventory at the point of sale. Collectability is probable since the Company only extends immaterial credit purchases to certain municipalities and local school districts.

In accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, the Company disaggregates net sales into the following major merchandise categories to depict the nature and amount of revenue and related cash flows:


	13 Weeks Ended				39 Weeks Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
	(In thousands)
Hardgoods	$	152,646	$	164,921	$	423,003	$	502,549
Athletic and sport footwear		64,215		74,472		187,604		212,706
Athletic and sport apparel		43,411		48,726		143,095		169,398
Other sales		1,173		1,518		3,524		3,810
Net sales	$	261,445	$	289,637	$	757,226	$	888,463

Substantially all of the Company’s revenue is for single performance obligations for the following distinct items:

•

Retail store sales

•

E-commerce sales

•

Stored-value cards

For performance obligations related to retail store and e-commerce sales contracts, the Company typically transfers control, for retail stores, upon consummation of the sale when the product is paid for and taken by the customer and, for e-commerce sales, when the product is tendered for delivery to the common carrier. For performance obligations related to stored-value cards, the Company typically transfers control upon redemption of the stored-value card through consummation of a future sales transaction. The Company accounts for shipping and handling relative to e-commerce sales as fulfillment activities, and not a separate performance obligation. Accordingly, the Company recognizes revenue for only one performance obligation, the sale of the product, at shipping point (when the customer gains control). Revenue associated with e-commerce sales was not material for the 13 and 39 weeks ended October 2, 2022 and October 3, 2021.

The Company recognized $1.3 million and $4.6 million in stored-value card redemption revenue for the 13 and 39 weeks ended October 2, 2022, respectively, compared to $1.3 million and $4.5 million in stored-value card redemption revenue for the 13 and 39 weeks ended October 3, 2021, respectively. The Company also recognized $0.1 million and $0.2 million in stored-value card breakage revenue for the 13 and 39 weeks ended October 2, 2022, respectively, compared to $0.1 million and $0.2 million in stored-value card breakage revenue for the 13 and 39 weeks ended October 3, 2021, respectively. The Company had outstanding stored-value card liabilities of $7.6 million and $8.3 million as of October 2, 2022 and January 2, 2022, respectively, which are included in accrued expenses in the accompanying interim unaudited condensed consolidated balance sheets. Based upon historical experience, stored-value cards are predominantly redeemed in the first two years following their issuance date.

In the accompanying interim unaudited condensed consolidated balance sheets, the Company recorded, as prepaid expense, estimated right-of-return merchandise cost of $0.8 million and $1.2 million related to estimated sales returns as of October 2, 2022 and January 2, 2022, respectively, and recorded, in accrued expenses, an allowance for sales returns reserve of $1.5 million and $2.5 million as of October 2, 2022 and January 2, 2022, respectively.

Share-Based Compensation

The Company accounts for its share-based compensation in accordance with ASC 718, Compensation—Stock Compensation. The Company recognizes compensation expense on a straight-line basis over the requisite service period using the fair-value method for share option awards, nonvested share awards and nonvested share unit awards granted with service-only conditions. See Note 10 to the Interim Financial Statements for a further discussion on share-based compensation.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and highly liquid investments of excess cash into U.S. Treasury bills, which generally have original maturities of three months or less. See Note 3 to the Interim Financial Statements for a further discussion on the fair value of U.S. Treasury bills. Book overdrafts are classified as current liabilities in the Company’s interim unaudited condensed consolidated balance sheets.

Valuation of Merchandise Inventories, Net

The Company’s merchandise inventories are made up of finished goods and are valued at the lower of cost or net realizable value using the weighted-average cost method that approximates the first-in, first-out (“FIFO”) method. Average cost includes the direct purchase price of merchandise inventory, net of vendor allowances and cash discounts, in-bound freight-related expense and allocated overhead expense associated with the Company’s distribution center.

Management regularly reviews inventories and records valuation reserves for damaged and defective merchandise, merchandise items with slow-moving or obsolescence exposure and merchandise that has a carrying value that exceeds net realizable value. Because of its merchandise mix, the Company has not historically experienced significant occurrences of obsolescence.

Inventory shrinkage is accrued as a percentage of merchandise sales based on historical inventory shrinkage trends. The Company performs physical inventories of its stores at least once per year and cycle counts inventories at its distribution center throughout the year. The reserve for inventory shrinkage primarily represents an estimate for inventory shrinkage for each store since the last physical inventory date through the reporting date.

These reserves are estimates, which could vary significantly, either favorably or unfavorably, from actual results if future economic conditions, consumer demand and competitive environments differ from expectations.

Valuation of Long-Lived Assets

In accordance with ASC 360, Property, Plant, and Equipment, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Long-lived assets are reviewed for recoverability at the lowest level in which there are identifiable cash flows (“asset group”), usually at the store level. The carrying amount of a store asset group includes stores’ property and equipment, primarily leasehold improvements, and operating lease right-of-use (“ROU”) assets. The carrying amount of a store asset group is not considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the store asset group. Factors that could trigger an impairment review include a current-period operating or cash flow loss combined with a history of operating and cash flow losses, and a projection that demonstrates continuing losses or insufficient income over the remaining reasonably certain lease term associated with the use of a store asset group. Other factors may include an adverse change in the business climate or an adverse action or assessment by a regulator in the market of a store asset group. When stores are identified as having an indicator of impairment, the Company forecasts undiscounted cash flows over the store asset group’s remaining reasonably certain lease term and compares the undiscounted cash flows to the carrying amount of the store asset group. If the store asset group is determined not to be recoverable, then an impairment charge will be recognized in the amount by which the carrying amount of the store asset group exceeds its fair value, determined using discounted cash flow valuation techniques, as contemplated in ASC 820, Fair Value Measurements.

The Company determines the cash flows expected to result from the store asset group by projecting future revenue, gross margin and operating expense for each store asset group under evaluation for impairment. The estimates of future cash flows involve management judgment and are based upon assumptions about expected future operating performance. Assumptions used in these forecasts are consistent with internal planning, and include assumptions about sales growth rates, gross margins and operating expense in relation to the current economic environment and the Company’s future expectations, competitive factors in its various markets, inflation, sales trends and other relevant environmental factors that may impact the store under evaluation. The actual cash flows could differ from management’s estimates due to changes in business conditions, operating performance and economic conditions. If economic conditions deteriorate in the markets in which the Company conducts business, or if other negative market conditions develop, the Company may experience additional impairment charges in the future for underperforming stores.

The resulting impairment charge, if any, is allocated to the property and equipment, primarily leasehold improvements, and operating lease ROU assets on a pro rata basis using the relative carrying amounts of those assets. The allocated impairment charge to a long-lived asset is limited to the extent that the impairment charge does not reduce the carrying amount of the long-lived asset below its individual fair value. The estimation of the fair value of an ROU asset involves the evaluation of current market value rental amounts for leases associated with ROU assets. The estimates of current market value rental amounts are primarily based on recent observable market rental data of other comparable retail store locations. The fair value of an ROU asset is measured using a discounted cash flow valuation technique by discounting the estimated current and future market rental values using a property-specific discount rate.

The Company did not recognize any impairment charges in the first nine months of fiscal 2022 or 2021.

Leases

In accordance with ASC 842, Leases, the Company determines if an arrangement is a lease at inception. The Company has operating and finance leases for the Company’s retail store facilities, distribution center, corporate offices, information technology hardware, and distribution center delivery tractors and equipment. Operating leases are included in operating lease ROU assets and operating lease liabilities, current and noncurrent, on the interim unaudited condensed consolidated balance sheets. Finance leases are included in property and equipment and finance lease liabilities, current and noncurrent, on the interim unaudited condensed consolidated balance sheets. Lease liabilities are calculated using the effective interest method, regardless of classification, while the amortization of ROU assets varies depending upon classification. Finance lease classification results in a front-loaded expense recognition pattern over the lease term which amortizes the ROU asset by recognizing interest expense and amortization expense as separate components of lease expense and calculates the amortization expense component on a straight-line basis. Conversely, operating lease classification results in a straight-line expense recognition pattern over the lease term and recognizes lease expense as a single expense component, which results in amortization of the ROU asset that equals the difference between lease expense and interest expense. Lease expense for finance and operating leases are included in cost of sales or selling and administrative expense, based on the use of the leased asset, on the interim unaudited condensed consolidated statements of operations. Variable payments such as property taxes, insurance and common area maintenance related to triple net leases, as well as certain equipment sales taxes, licenses, fees and repairs, are expensed as incurred, and leases with an initial term of 12 months or less are excluded from minimum lease payments and are not recorded on the interim unaudited condensed consolidated balance sheets. The Company recognizes variable lease expense for these short-term leases on a straight-line basis over the remaining lease term.

ROU assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the reasonably certain lease term. As the Company’s leases generally do not provide an implicit rate, the Company uses a collateralized incremental borrowing rate (“IBR”) to determine the present value of lease payments. The collateralized IBR is based on a synthetic credit rating that is externally prepared on an annual basis. This analysis considers qualitative and quantitative factors based on guidance provided by a rating agency for the consumer durables industry. The Company adjusts the selected IBR quarterly with a company-specific unsecured yield curve that approximates the Company’s market risk profile. The collateralized IBR is also based upon the estimated impact that the collateral has on the IBR. To account for the collateralized nature of the IBR, the Company utilized a notching method based on notching guidance provided by a rating agency whereby the Company’s base credit rating is notched upward as the yield curve on a secured loan is expected to be lower versus an unsecured loan.

The operating lease ROU asset also includes any prepaid lease payments made and is reduced by lease incentives such as tenant improvement allowances. The operating lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term.

Certain of the leases for the Company’s retail store facilities provide for payments based on future sales volumes at the leased location, which are not measurable at the inception of the lease. Under ASC 842, these contingent rents are expensed as they accrue.

See Note 5 to the Interim Financial Statements for a further discussion on leases.

Fair Value Measurements

9 Months Ended

Oct. 02, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

(3)

Fair Value Measurements

The carrying values of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate the fair values of these instruments due to their short-term nature. Cash equivalents consist of highly liquid investments of excess cash into U.S. Treasury bills, which generally have original maturities of three months or less. As of October 2, 2022 and January 2, 2022, the Company recorded $10.0 million and $75.0 million, respectively, in cash equivalents, and classified these assets as Level 1 inputs, which are quoted prices (unadjusted) in active markets for identical assets that the Company can access at the measurement date. The Company records these cash equivalents monthly, based on the prevailing market interest rate as of the measurement date. Book overdrafts for checks outstanding are classified as current liabilities in the Company’s interim unaudited condensed consolidated balance sheets. The carrying amount for borrowings, if any, under the Company’s credit facility approximates fair value because of the variable market interest rate charged to the Company for these borrowings. When the Company recognizes impairment on certain of its underperforming stores, the carrying values of these stores are reduced to their estimated fair values.

The Company’s only significant assets or liabilities measured at fair value on a nonrecurring basis subsequent to their initial recognition were assets subject to long-lived asset impairment related to certain underperforming stores. The Company estimates the fair values of these long-lived assets based on the Company’s own judgments about the assumptions that market participants would use in pricing the asset and on observable real estate market data of underperforming stores’ specific comparable markets, when available. The Company classifies these fair value measurements as Level 3 inputs, which are unobservable inputs for which market data are not available and that are developed using the best information available about pricing assumptions used by market participants in accordance with ASC 820. As of October 2, 2022 and January 2, 2022, there were no long-lived assets subject to impairment.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Accrued Expenses

9 Months Ended

Oct. 02, 2022

Payables and Accruals [Abstract]

Accrued Expenses

(4)

Accrued Expenses

The major components of accrued expenses are as follows:


	October 2, 2022		January 2, 2022
	(In thousands)
Payroll and related expense	$	25,686	$	37,345
Occupancy expense		11,422		10,168
Sales tax		7,538		12,112
Other		23,119		25,416
Accrued expenses	$	67,765	$	85,041

Lease Commitments

9 Months Ended

Oct. 02, 2022

Leases [Abstract]

Lease Commitments

(5)

Lease Commitments

The Company has operating and finance leases for the Company’s retail store facilities, distribution center, corporate offices, information technology hardware, and distribution center delivery tractors and equipment, and accounts for these leases in accordance with ASC 842.

Certain of the leases for the Company’s retail store facilities provide for variable payments for property taxes, insurance, common area maintenance payments related to triple net leases, rental payments based on future sales volumes at the leased location, as well as certain equipment sales taxes, licenses, fees and repairs, which are not measurable at the inception of the lease, or rental payments that are adjusted periodically for inflation. The Company recognizes variable lease expense for these leases in the period incurred which, for contingent rent, begins in the period in which it becomes probable that the specified target that triggers the variable lease payments will be achieved. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

In accordance with ASC 842, the components of lease expense were as follows:


	13 Weeks Ended					39 Weeks Ended
	October 2, 2022		October 3, 2021			October 2, 2022		October 3, 2021
	(In thousands)
Lease expense:
Operating lease expense	$	21,001	$	20,535		$	62,311	$	61,255
Variable lease expense		4,834		4,572			14,339		13,775
Sublease income		—		(13	)		—		(90	)
Operating lease expense		25,835		25,094			76,650		74,940

Amortization of right-of-use assets		919		742			2,707		2,112
Interest on lease liabilities		67		66			204		186
Finance lease expense		986		808			2,911		2,298
Total lease expense	$	26,821	$	25,902		$	79,561	$	77,238

In accordance with ASC 842, other information related to leases was as follows:


	39 Weeks Ended
	October 2, 2022			October 3, 2021
	(In thousands)
Operating cash flows from operating leases	$	64,688		$	64,226
Financing cash flows from finance leases		2,690			2,141
Operating cash flows from finance leases		213			198
Cash paid for amounts included in the measurement of lease liabilities	$	67,591		$	66,565

Right-of-use assets obtained in exchange for new finance lease liabilities	$	1,634		$	7,661
Right-of-use assets obtained in exchange for new operating lease liabilities	$	66,840		$	47,325
Weighted-average remaining lease term—finance leases	3.6 years			3.9 years
Weighted-average remaining lease term—operating leases	5.0 years			4.9 years
Weighted-average discount rate—finance leases		3.2	%		3.2	%
Weighted-average discount rate—operating leases		4.9	%		5.4	%

In accordance with ASC 842, maturities of finance and operating lease liabilities as of October 2, 2022 were as follows:


Year Ending:	Finance Leases			Operating Leases
	(In thousands)
2022 (remaining three months)	$	1,297		$	23,220
2023		2,900			80,439
2024		2,131			72,951
2025		1,617			55,803
2026		1,074			39,856
Thereafter		355			60,129
Undiscounted cash flows	$	9,374		$	332,398
Reconciliation of lease liabilities:
Weighted-average remaining lease term	3.6 years			5.0 years
Weighted-average discount rate		3.2	%		4.9	%
Present values	$	8,895		$	295,034
Lease liabilities - current		3,446			78,589
Lease liabilities - long-term		5,449			216,445
Lease liabilities - total	$	8,895		$	295,034
Difference between undiscounted and discounted cash flows	$	479		$	37,364

Long-Term Debt

9 Months Ended

Oct. 02, 2022

Debt Disclosure [Abstract]

Long-Term Debt

(6)

Long-Term Debt

The Company, Big 5 Corp. and Big 5 Services Corp. were parties to a credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, and a syndicate of other lenders, as amended (the “Prior Credit Agreement”), which was terminated and replaced on February 24, 2021, as discussed below.

On February 24, 2021, the Company entered into a Loan, Guaranty and Security Agreement with Bank of America, N.A. (“BofA”), as agent and lender, which was amended on November 22, 2021 and October 19, 2022 (as so amended, the “Loan Agreement”). The Loan Agreement has a maturity date of February 24, 2026 and provides for a revolving credit facility with an aggregate committed availability of up to $150.0 million. The Company may also request additional increases in aggregate availability, up to a maximum of $200.0 million, in which case the existing lender under the Loan Agreement will have the option to increase the commitment to accommodate the requested increase. If such existing lender does not exercise that option, the Company may (with the consent of BofA in its role as the administrative agent, not to be unreasonably withheld) seek other lenders willing to provide such commitments. The credit facility includes a $50.0 million sublimit for issuances of letters of credit.

Similar to the Prior Credit Agreement, the Company may borrow under the Loan Agreement from time to time, provided the amounts outstanding will not exceed the lesser of the then aggregate committed availability (as discussed above) and the Borrowing Base (such lesser amount being referred to as the “Line Cap”). As defined in the Loan Agreement, the “Borrowing Base” generally is comprised of the sum, at the time of calculation, of (a) 90.00% of eligible credit card receivables; plus (b) the cost of eligible inventory (other than eligible in-transit inventory), net of inventory reserves, multiplied by 90.00% of the appraised net orderly liquidation value of eligible inventory (expressed as a percentage of the cost of eligible inventory); plus (c) the cost of eligible in-transit inventory, net of inventory reserves, multiplied by 90.00% of the appraised net orderly liquidation value of eligible in-transit inventory (expressed as a percentage of the cost of eligible in-transit inventory), minus (d) certain agreed-upon reserves as well as other reserves established by BofA in its role as the administrative agent in its reasonable discretion.

Generally, the Company may designate specific borrowings under the Loan Agreement as either base rate loans or Term SOFR rate loans. The applicable interest rate on the Company’s borrowings is a function of the daily average, over the preceding fiscal quarter, of the excess of the Line Cap over amounts borrowed (such amount being referred to as the “Average Daily Availability”). Those loans designated as Term SOFR rate loans bear interest at a rate equal to the then applicable secured overnight financing rate as administered by the Federal Reserve Bank of New York (“SOFR”) rate plus a 0.10% “SOFR adjustment” spread, plus an applicable margin as shown in the table below. Those loans designated as base rate loans bear interest at a rate equal to the applicable margin for base rate loans (as shown below) plus the highest of (a) the Federal funds rate, as in effect from time to time, plus one-half of one percent (0.50%), (b) the one-month SOFR rate, plus one percentage point (1.00%), or (c) the rate of interest in effect for such day as announced from time to time within BofA as its “prime rate.” The applicable margin for all loans is a function of Average Daily Availability for the preceding fiscal quarter as set forth below.


Level	Average Daily Availability	SOFR Rate Applicable Margin	Base Rate Applicable Margin
I	Greater than or equal to $70,000,000	1.375%	0.375%
II	Less than $70,000,000	1.500%	0.500%

The commitment fee assessed on the unused portion of the credit facility is 0.20% per annum.

Obligations under the Loan Agreement are secured by a general lien on and security interest in substantially all of the Company’s assets. The Loan Agreement contains covenants that require the Company to maintain a fixed charge coverage ratio of not less than 1.0:1.0 in certain circumstances, and limits the ability to, among other things, incur liens, incur additional indebtedness, transfer or dispose of assets, change the nature of the business, guarantee obligations, pay dividends or make other distributions or repurchase stock, and make advances, loans or investments. The Company may generally declare or pay cash dividends or repurchase stock only if, among other things, no default or event of default then exists or would arise from such dividend or repurchase of stock and, after giving effect to such dividend or repurchase, certain availability and/or fixed charge coverage ratio requirements are satisfied, although the Company is permitted to make up to $5.0 million of dividend payments or stock repurchases per year without satisfaction of the availability or fixed charge coverage ratio requirements, but dividends or stock repurchases made without satisfying the availability and/or fixed charge coverage ratio requirements will require the establishment of an additional reserve that will reduce borrowing availability under the Loan Agreement for 75 days. The Loan Agreement contains customary events of default, including, without limitation, failure to pay when due principal amounts with respect to the credit facility, failure to pay any interest or other amounts under the credit facility, failure to comply with certain agreements or covenants contained in the Loan Agreement, failure to satisfy certain judgments against the Company, failure to pay when due (or any other default which permits the acceleration of) certain other material indebtedness in principal amount in excess of $5.0 million, and certain insolvency and bankruptcy events.

In the first quarter of fiscal 2021, the Company paid and capitalized $0.7 million in new creditor and third-party fees associated with the Loan Agreement, which is amortized over the term of the Loan Agreement, and extinguished $0.2 million of deferred financing fees associated with the Prior Credit Agreement.

As of October 2, 2022 and January 2, 2022, the Company had no long-term revolving credit borrowings outstanding. As of October 2, 2022 and January 2, 2022, the Company had letter of credit commitments of $1.1 million outstanding. Total remaining borrowing availability, after subtracting letters of credit, was $148.9 million as of October 2, 2022 and January 2, 2022.

Income Taxes

9 Months Ended

Oct. 02, 2022

Income Tax Disclosure [Abstract]

Income Taxes

(7)

Income Taxes

Under the asset and liability method prescribed under ASC 740, Income Taxes, the Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The realizability of deferred tax assets is assessed throughout the year and a valuation allowance is recorded, if necessary, to reduce net deferred tax assets to the amount more likely than not to be realized. As of October 2, 2022 and January 2, 2022, the Company had a valuation allowance for deferred income tax assets of $0.3 million related to unused California Enterprise Zone Tax Credits, which the Company will no longer be able to carry forward beyond 2024 as a result of California’s termination of this program.

The Company files a consolidated federal income tax return and files tax returns in various state and local jurisdictions. The statutes of limitations for consolidated federal income tax returns are open for fiscal years 2018 and after, and state and local income tax returns are open for fiscal years 2017 and after.

The provision for income taxes for the 39 weeks ended October 3, 2021 reflected a $0.3 million favorable reduction of the Company’s previously established valuation allowance related to unused California Enterprise Zone Tax Credits and a $0.2 million disaster recovery credit related to fires in California.

As of October 2, 2022 and January 2, 2022, the Company had no unrecognized tax benefits including those that, if recognized, would affect the Company’s effective income tax rate over the next 12 months. The Company’s policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expense. As of October 2, 2022 and January 2, 2022, the Company had no accrued interest or penalties.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Earnings Per Share

9 Months Ended

Oct. 02, 2022

Earnings Per Share [Abstract]

Earnings Per Share

(8)

Earnings Per Share

The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share, which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share is calculated by dividing net income by the weighted-average shares of common stock outstanding, reduced by shares repurchased and held in treasury, during the period. Diluted earnings per share represents basic earnings per share adjusted to include the potentially dilutive effect of outstanding share option awards, nonvested share awards and nonvested share unit awards. During periods of net loss, diluted loss per share is equal to basic loss per share because the antidilutive effect of potential common shares is disregarded.

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


	13 Weeks Ended				39 Weeks Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
	(In thousands, except per share data)
Net income	$	6,369	$	24,131	$	24,406	$	82,480
Weighted-average shares of common stock outstanding:
Basic		21,586		21,798		21,647		21,654
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards		344		736		474		871
Diluted		21,930		22,534		22,121		22,525
Basic earnings per share	$	0.30	$	1.11	$	1.13	$	3.81
Diluted earnings per share	$	0.29	$	1.07	$	1.10	$	3.66
Antidilutive share option awards excluded from diluted calculation		20		—		15		—
Antidilutive nonvested share and nonvested share unit awards excluded from diluted calculation		389		—		172		7

The computation of diluted earnings per share for the 13 and 39 weeks ended October 2, 2022 excludes certain share option awards that were outstanding and antidilutive (i.e., including such share option awards would result in higher earnings per share), since the exercise prices of these share option awards exceeded the average market price of the Company’s common shares. No share option awards were antidilutive for the 13 and 39 weeks ended October 3, 2021.

The computation of diluted earnings per share for the 13 and 39 weeks ended October 2, 2022, and the 39 weeks ended October 3, 2021, excludes certain nonvested share awards that were outstanding and antidilutive, since the grant date fair values of these nonvested share awards exceeded the average market price of the Company’s common shares. No nonvested share awards were antidilutive for the 13 weeks ended October 3, 2021. No nonvested share unit awards were antidilutive for any period presented.

Commitments and Contingencies

9 Months Ended

Oct. 02, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

(9)

Commitments and Contingencies

Recovery of Insurance Proceeds

In the second quarter of fiscal 2020, seven of the Company’s stores were damaged and qualified for loss recovery claims as a result of civil unrest, and the Company disposed of assets of approximately $0.6 million related to lost inventory and property and equipment. In the first quarter of fiscal 2021, the Company reached an agreement with its insurance carrier and, after application of a deductible of $0.3 million, the Company received a cash insurance recovery of $1.3 million in total, of which $1.0 million related to the reimbursement of lost inventory and profit margin, $0.2 million related to the reimbursement of property and equipment, and $0.1 million related to a reimbursement for business interruption. Accordingly, the Company recognized gains of $0.5 million related to the recovery of lost profit margin and business interruption, and $0.2 million related to the recovery of property and equipment. The gain related to the recovery of lost profit margin and business interruption is included in the accompanying consolidated statement of operations as a reduction to cost of goods sold, and the gain related to the recovery of lost property and equipment is included in the accompanying consolidated statement of operations as a reduction to selling and administrative expense for fiscal 2021.

The Company is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters is not expected to have a material effect on the Company’s results of operations, financial condition or cash flows.

Share-based Compensation

9 Months Ended

Oct. 02, 2022

Share-Based Payment Arrangement [Abstract]

Share-based Compensation

(10)

Share-based Compensation

In June 2022, the Company amended and restated its 2019 Equity Incentive Plan (the “2019 Plan”), primarily authorizing an additional 3,300,000 shares available for future grant, which were not registered as of October 2, 2022. As of October 2, 2022, 1,055,807 shares remained registered and available for future grant under the 2019 Plan.

At its discretion, the Company grants share option awards, nonvested share awards and nonvested share unit awards to certain employees, as defined by ASC 718, Compensation—Stock Compensation, under the Company’s 2019 Plan, and accounts for its share-based compensation in accordance with ASC 718. The Company recognized $0.6 and $1.8 million in share-based compensation expense for the 13 and 39 weeks ended October 2, 2022, respectively, compared to $0.5 million and $1.4 million in share-based compensation expense for the 13 and 39 weeks ended October 3, 2021, respectively.

Share Option Awards

Share option awards granted by the Company generally vest and become exercisable in four equal annual installments of 25% per year with a maximum life of ten years. The exercise price of share option awards is equal to the quoted market price of the Company’s common stock on the date of grant. The Company granted 10,000 share option awards in the first nine months of fiscal 2022 with a weighted-average grant-date fair value of $5.46 per share option award. No share option awards were granted in the first nine months of fiscal 2021.

A summary of the status of the Company’s share option awards is presented below:


	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (In Years)		Aggregate Intrinsic Value
Outstanding at January 2, 2022		383,035		$	3.96
Granted		10,000			13.35
Exercised		(81,200	)		4.12
Forfeited		(9,600	)		2.81
Outstanding at October 2, 2022		302,235		$	4.26		7.04	$	2,125,002
Exercisable at October 2, 2022		106,390		$	3.96		6.51	$	721,349
Vested and Expected to Vest at October 2, 2022		301,479		$	4.25		7.04	$	2,120,508

The aggregate intrinsic value represents the total pretax intrinsic value, based upon the Company’s most recent closing stock price of $10.74 as of October 2, 2022, which would have been received by the share option award holders had all share option award holders exercised their share option awards as of that date.

The fair value of each share option award on the date of grant is estimated using the Black-Scholes method based on the following weighted-average assumptions:


	13 Weeks Ended				39 Weeks Ended
	October 2, 2022		October 3, 2021		October 2, 2022			October 3, 2021
Risk-free interest rate		—		—		2.7	%		—
Expected term		—		—	6.5 years				—
Expected volatility		—		—		80.8	%		—
Expected dividend yield		—		—		7.4	%		—

The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected term of the option award; the expected term represents the weighted-average period of time that option awards granted are expected to be outstanding giving consideration to vesting schedules and historical participant exercise behavior; the expected volatility is based upon historical volatility of the Company’s common stock; and the expected dividend yield is based upon the Company’s dividend rate at the time fair value is measured and future expectations.

As of October 2, 2022, there was $0.3 million of total unrecognized compensation expense related to share option awards granted. That expense is expected to be recognized over a weighted-average period of 1.3 years.

Nonvested Share Awards and Nonvested Share Unit Awards

Nonvested share awards granted by the Company vest for employees from the date of grant in four equal annual installments of 25% per year. Nonvested share awards and nonvested share unit awards granted by the Company to non-employee directors for their service as directors, as defined by ASC 718, generally vest 100% on the earlier of (a) the date of the Company’s next annual stockholders meeting following the grant date, or (b) the first anniversary of the grant date.

Nonvested share awards become outstanding when granted and are delivered to the recipient upon their vesting. Vested share unit awards, including any dividend reinvestments, are delivered to the recipient on the tenth business day of January following the year in which the recipient’s service to the Company is terminated, at which time the units convert to shares and become outstanding. The total fair value of nonvested share awards which vested during the first nine months of fiscal 2022 and 2021 was $3.3 million and $5.3 million, respectively. No nonvested share unit awards vested during the first nine months of fiscal 2022. The total fair value of nonvested share unit awards which vested in the first nine months of fiscal 2021 was $1.2 million. On January 14, 2022, the Company delivered 124,012 shares outstanding on previously vested share unit awards, which included dividend reinvestments, to a former Board member who retired in November 2021.

The Company granted 284,630 and 248,550 nonvested share awards in the first nine months of fiscal 2022 and 2021, respectively. The weighted-average grant-date fair value per share of the Company’s nonvested share awards granted in the first nine months of fiscal 2022 and 2021 was $15.03 and $15.61, respectively.

A summary of the status of the Company’s nonvested share awards is presented below:


	Shares			Weighted- Average Grant- Date Fair Value
Balance at January 2, 2022		551,700		$	8.51
Granted		284,630			15.03
Vested		(216,700	)		8.19
Forfeited		(29,920	)		11.14
Balance at October 2, 2022		589,710		$	11.64

To satisfy employee minimum statutory tax withholding requirements for nonvested share awards that vest, the Company withholds and retires a portion of the vesting common shares, unless an employee elects to pay cash. In the first nine months of fiscal 2022, the Company withheld 77,340 common shares with a total value of $1.2 million. This amount is presented as a cash outflow from financing activities in the accompanying interim unaudited condensed consolidated statement of cash flows.

As of October 2, 2022, there was $5.5 million of total unrecognized compensation expense related to nonvested share awards, which is expected to be recognized over a weighted-average period of 2.4 years. As of October 2, 2022, there was no remaining unrecognized compensation expense related to nonvested share unit awards.

Subsequent Events	9 Months Ended
Subsequent Events	Oct. 02, 2022
Subsequent Events [Abstract]
Subsequent Events	(11) Subsequent Events On October 27, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.25 per share of outstanding common stock, which will be paid on December 15, 2022 to stockholders of record as of December 1, 2022.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Oct. 02, 2022

Accounting Policies [Abstract]

Consolidation

Reporting Period

Recently Issued Accounting Updates

Other recently issued accounting updates are not expected to have a material impact on the Company’s Interim Financial Statements.

COVID-19 Impact on Concentration of Risk

General Concentration of Risk

Use of Estimates

Revenue Recognition


	13 Weeks Ended				39 Weeks Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
	(In thousands)
Hardgoods	$	152,646	$	164,921	$	423,003	$	502,549
Athletic and sport footwear		64,215		74,472		187,604		212,706
Athletic and sport apparel		43,411		48,726		143,095		169,398
Other sales		1,173		1,518		3,524		3,810
Net sales	$	261,445	$	289,637	$	757,226	$	888,463

Substantially all of the Company’s revenue is for single performance obligations for the following distinct items:

•

Retail store sales

•

E-commerce sales

•

Stored-value cards

Share-Based Compensation

Cash and Cash Equivalents

Valuation of Merchandise Inventories, Net

Valuation of Long-Lived Assets

The Company did not recognize any impairment charges in the first nine months of fiscal 2022 or 2021.

Leases

See Note 5 to the Interim Financial Statements for a further discussion on leases.

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Oct. 02, 2022

Accounting Policies [Abstract]

Summary of Disaggregates Net Sales into Major Merchandise Categories to Depict Nature and Amount of Revenue and Related Cash Flows


	13 Weeks Ended				39 Weeks Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
	(In thousands)
Hardgoods	$	152,646	$	164,921	$	423,003	$	502,549
Athletic and sport footwear		64,215		74,472		187,604		212,706
Athletic and sport apparel		43,411		48,726		143,095		169,398
Other sales		1,173		1,518		3,524		3,810
Net sales	$	261,445	$	289,637	$	757,226	$	888,463

Accrued Expenses (Tables)

9 Months Ended

Oct. 02, 2022

Payables and Accruals [Abstract]

Summary of Accrued Expenses

The major components of accrued expenses are as follows:


	October 2, 2022		January 2, 2022
	(In thousands)
Payroll and related expense	$	25,686	$	37,345
Occupancy expense		11,422		10,168
Sales tax		7,538		12,112
Other		23,119		25,416
Accrued expenses	$	67,765	$	85,041

Lease Commitments (Tables)

9 Months Ended

Oct. 02, 2022

Leases [Abstract]

Summary of Components of Lease Expense

In accordance with ASC 842, the components of lease expense were as follows:


	13 Weeks Ended					39 Weeks Ended
	October 2, 2022		October 3, 2021			October 2, 2022		October 3, 2021
	(In thousands)
Lease expense:
Operating lease expense	$	21,001	$	20,535		$	62,311	$	61,255
Variable lease expense		4,834		4,572			14,339		13,775
Sublease income		—		(13	)		—		(90	)
Operating lease expense		25,835		25,094			76,650		74,940

Amortization of right-of-use assets		919		742			2,707		2,112
Interest on lease liabilities		67		66			204		186
Finance lease expense		986		808			2,911		2,298
Total lease expense	$	26,821	$	25,902		$	79,561	$	77,238

Schedule of Other Information Related To Leases

In accordance with ASC 842, other information related to leases was as follows:


	39 Weeks Ended
	October 2, 2022			October 3, 2021
	(In thousands)
Operating cash flows from operating leases	$	64,688		$	64,226
Financing cash flows from finance leases		2,690			2,141
Operating cash flows from finance leases		213			198
Cash paid for amounts included in the measurement of lease liabilities	$	67,591		$	66,565

Right-of-use assets obtained in exchange for new finance lease liabilities	$	1,634		$	7,661
Right-of-use assets obtained in exchange for new operating lease liabilities	$	66,840		$	47,325
Weighted-average remaining lease term—finance leases	3.6 years			3.9 years
Weighted-average remaining lease term—operating leases	5.0 years			4.9 years
Weighted-average discount rate—finance leases		3.2	%		3.2	%
Weighted-average discount rate—operating leases		4.9	%		5.4	%

Schedule of Maturities For Finance And Operating Leases

In accordance with ASC 842, maturities of finance and operating lease liabilities as of October 2, 2022 were as follows:


Year Ending:	Finance Leases			Operating Leases
	(In thousands)
2022 (remaining three months)	$	1,297		$	23,220
2023		2,900			80,439
2024		2,131			72,951
2025		1,617			55,803
2026		1,074			39,856
Thereafter		355			60,129
Undiscounted cash flows	$	9,374		$	332,398
Reconciliation of lease liabilities:
Weighted-average remaining lease term	3.6 years			5.0 years
Weighted-average discount rate		3.2	%		4.9	%
Present values	$	8,895		$	295,034
Lease liabilities - current		3,446			78,589
Lease liabilities - long-term		5,449			216,445
Lease liabilities - total	$	8,895		$	295,034
Difference between undiscounted and discounted cash flows	$	479		$	37,364

Long-Term Debt (Tables)

9 Months Ended

Oct. 02, 2022

Loan, Guaranty and Security Agreement [Member]

Average Daily Excess Availability for Preceding Fiscal Quarter


Level	Average Daily Availability	SOFR Rate Applicable Margin	Base Rate Applicable Margin
I	Greater than or equal to $70,000,000	1.375%	0.375%
II	Less than $70,000,000	1.500%	0.500%

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

Earnings Per Share (Tables)

9 Months Ended

Oct. 02, 2022

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Common Share

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


	13 Weeks Ended				39 Weeks Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
	(In thousands, except per share data)
Net income	$	6,369	$	24,131	$	24,406	$	82,480
Weighted-average shares of common stock outstanding:
Basic		21,586		21,798		21,647		21,654
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards		344		736		474		871
Diluted		21,930		22,534		22,121		22,525
Basic earnings per share	$	0.30	$	1.11	$	1.13	$	3.81
Diluted earnings per share	$	0.29	$	1.07	$	1.10	$	3.66
Antidilutive share option awards excluded from diluted calculation		20		—		15		—
Antidilutive nonvested share and nonvested share unit awards excluded from diluted calculation		389		—		172		7

Share-based Compensation (Tables)

9 Months Ended

Oct. 02, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Share Option Awards

A summary of the status of the Company’s share option awards is presented below:


	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (In Years)		Aggregate Intrinsic Value
Outstanding at January 2, 2022		383,035		$	3.96
Granted		10,000			13.35
Exercised		(81,200	)		4.12
Forfeited		(9,600	)		2.81
Outstanding at October 2, 2022		302,235		$	4.26		7.04	$	2,125,002
Exercisable at October 2, 2022		106,390		$	3.96		6.51	$	721,349
Vested and Expected to Vest at October 2, 2022		301,479		$	4.25		7.04	$	2,120,508

Weighted-Average Assumptions Used to Estimate the Fair Value of Each Share Option Award

The fair value of each share option award on the date of grant is estimated using the Black-Scholes method based on the following weighted-average assumptions:


	13 Weeks Ended				39 Weeks Ended
	October 2, 2022		October 3, 2021		October 2, 2022			October 3, 2021
Risk-free interest rate		—		—		2.7	%		—
Expected term		—		—	6.5 years				—
Expected volatility		—		—		80.8	%		—
Expected dividend yield		—		—		7.4	%		—

Summary of Nonvested Share Awards Activity

A summary of the status of the Company’s nonvested share awards is presented below:


	Shares			Weighted- Average Grant- Date Fair Value
Balance at January 2, 2022		551,700		$	8.51
Granted		284,630			15.03
Vested		(216,700	)		8.19
Forfeited		(29,920	)		11.14
Balance at October 2, 2022		589,710		$	11.64

Description of Business - Additional Information (Detail)	9 Months Ended
	Oct. 02, 2022 ft² Store Segment
Description Of Business [Line Items]
Number of operating stores \| Store	431
Area of traditional sporting goods store \| ft²	11,000
Number of reportable segment \| Segment	1
Big 5 Corp [Member]
Description Of Business [Line Items]
Subsidiary interest ownership percentage	100.00%
Big 5 Service Corp [Member] \| Big 5 Corp [Member]
Description Of Business [Line Items]
Subsidiary interest ownership percentage	100.00%

Summary of Significant Accounting Policies - Additional Information (Detail)	3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 02, 2022 USD ($)	Oct. 03, 2021 USD ($)	Oct. 02, 2022 USD ($)	Oct. 03, 2021 USD ($)	Jan. 02, 2022 USD ($) Supplier	Jan. 03, 2021
Accounting Policies [Line Items]
Reporting period, minimum			364 days
Reporting period, maximum			371 days
Interim reporting periods			91 days	91 days
Concentration risk, suppliers \| Supplier					700
Concentration risk, largest supplier \| Supplier					20
Suppliers accounted for total purchases					36.80%
Vendor represented greater than of total purchases \| Supplier					1
Number of performance obligation			one
Stored value card redemption revenue recognized	$ 1,300,000	$ 1,300,000	$ 4,600,000	$ 4,500,000
Outstanding stored value card liabilities	7,600,000		$ 7,600,000		$ 8,300,000
Stored value cards redeemed period			2 years
Impairment charges			$ 0	0	0
Merchandise [Member] \| Accounting Standards Update 2014-09
Accounting Policies [Line Items]
Estimated right of return related to estimated sales returns			800,000		1,200,000
Allowance for sales returns reserve	1,500,000		1,500,000		$ 2,500,000
Stored Value Card Breakage Revenue [Member]
Accounting Policies [Line Items]
Recognized stored value card breakage revenue	$ 100,000	$ 100,000	$ 200,000	$ 200,000
Nike [Member]
Accounting Policies [Line Items]
Suppliers accounted for total purchases					7.60%
Percentage of vendors represented greater than of total purchases					5.00%
Suppliers accounted for total sales					8.70%
COVID-19 [Member]
Accounting Policies [Line Items]
Percentage of minimum number of retail store locations closed						50.00%

Summary of Significant Accounting Policies - Summary of Disaggregates Net Sales into Major Merchandise Categories to Depict Nature and Amount of Revenue and Related Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Accounting Policies [Line Items]
Net sales	$ 261,445	$ 289,637	$ 757,226	$ 888,463
Hardgoods [Member]
Accounting Policies [Line Items]
Net sales	152,646	164,921	423,003	502,549
Athletic and sport footwear [Member]
Accounting Policies [Line Items]
Net sales	64,215	74,472	187,604	212,706
Athletic and sport apparel [Member]
Accounting Policies [Line Items]
Net sales	43,411	48,726	143,095	169,398
Other sales [Member]
Accounting Policies [Line Items]
Net sales	$ 1,173	$ 1,518	$ 3,524	$ 3,810

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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+ Details

Fair Value Measurements - Additional Information (Details) - USD ($)	9 Months Ended		12 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Jan. 02, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment charges	$ 0	$ 0	$ 0
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 10,000,000.0		$ 75,000,000.0

Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands	Oct. 02, 2022	Jan. 02, 2022
Payables and Accruals [Abstract]
Payroll and related expense	$ 25,686	$ 37,345
Occupancy expense	11,422	10,168
Sales tax	7,538	12,112
Other	23,119	25,416
Accrued expenses	$ 67,765	$ 85,041

Lease Commitments - Summary of Components of Lease Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Lease expense:
Operating lease expense	$ 21,001	$ 20,535	$ 62,311	$ 61,255
Variable lease expense	4,834	4,572	14,339	13,775
Sublease income		(13)		(90)
Operating lease expense	25,835	25,094	76,650	74,940
Amortization of right-of-use assets	919	742	2,707	2,112
Interest on lease liabilities	67	66	204	186
Finance lease expense	986	808	2,911	2,298
Total lease expense	$ 26,821	$ 25,902	$ 79,561	$ 77,238

Lease Commitments - Schedule of Other Information Related to Leases (Detail) - USD ($) $ in Thousands	9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021
Leases [Abstract]
Operating cash flows from operating leases	$ 64,688	$ 64,226
Financing cash flows from finance leases	2,690	2,141
Operating cash flows from finance leases	213	198
Cash paid for amounts included in the measurement of lease liabilities	67,591	66,565
Right-of-use assets obtained in exchange for new finance lease liabilities	1,634	7,661
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 66,840	$ 47,325
Weighted-average remaining lease term—finance leases	3 years 7 months 6 days	3 years 10 months 24 days
Weighted-average remaining lease term—operating leases	5 years	4 years 10 months 24 days
Weighted-average discount rate—finance leases	3.20%	3.20%
Weighted-average discount rate—operating leases	4.90%	5.40%

Lease Commitments - Schedule of Finance and Operating Lease Liabilities (Detail) - USD ($) $ in Thousands	Oct. 02, 2022	Jan. 02, 2022	Oct. 03, 2021
Finance Lease Liabilities, Payments, Due [Abstract]
2022 (remaining three months)	$ 1,297
Finance leases, 2023	2,900
Finance leases, 2024	2,131
Finance leases, 2025	1,617
Finance leases, 2026	1,074
Finance leases, thereafter	355
Finance leases, total lease payments	$ 9,374
Weighted-average remaining lease term	3 years 7 months 6 days		3 years 10 months 24 days
Weighted-average discount rate	3.20%		3.20%
Present values	$ 8,895
Lease liabilities - current	3,446	$ 3,518
Lease liabilities - long-term	5,449	6,456
Lease liabilities - total	8,895
Difference between undiscounted and discounted cash flows	479
Operating Lease Liabilities, Payments Due [Abstract]
2022 (remaining three months)	23,220
Operating leases, 2023	80,439
Operating leases, 2024	72,951
Operating leases, 2025	55,803
Operating leases, 2026	39,856
Operating leases, thereafter	60,129
Operating leases, total lease payments	$ 332,398
Weighted-average remaining lease term	5 years		4 years 10 months 24 days
Weighted-average discount rate	4.90%		5.40%
Present values	$ 295,034
Lease liabilities - current	78,589	76,882
Lease liabilities - long-term	216,445	$ 204,134
Lease liabilities - total	295,034
Difference between undiscounted and discounted cash flows	$ 37,364

Long-Term Debt - Additional Information (Detail) - USD ($)		3 Months Ended	9 Months Ended
	Feb. 24, 2021	Apr. 04, 2021	Oct. 02, 2022	Oct. 03, 2021	Jan. 02, 2022
Debt Instrument [Line Items]
Credit Agreement description			The Company, Big 5 Corp. and Big 5 Services Corp. were parties to a credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, and a syndicate of other lenders, as amended (the “Prior Credit Agreement”), which was terminated and replaced on February 24, 2021, as discussed below.
Debt issuance costs paid		$ 700,000		$ 717,000
Long-term revolving credit borrowings outstanding			$ 0		$ 0
Letter of credit commitments			$ 1,100,000		1,100,000
Loan, Guaranty and Security Agreement [Member]
Debt Instrument [Line Items]
Revolving credit facility	$ 150,000,000.0
Maximum limit of credit facility	200,000,000.0
Sublimit for issuances of letters of credit	$ 50,000,000.0
Maturity date of credit agreement	Feb. 24, 2026
Percentage of eligible credit card accounts receivables	90.00%
Percentage of the value of eligible inventory	90.00%
Percentage of the value of eligible in-transit inventory	90.00%
Interest rate, description			the applicable margin for base rate loans (as shown below) plus the highest of (a) the Federal funds rate, as in effect from time to time, plus one-half of one percent (0.50%), (b) the one-month SOFR rate, plus one percentage point (1.00%), or (c) the rate of interest in effect for such day as announced from time to time within BofA as its “prime rate.”
Commitment fee assessed	0.20%
Debt instrument, covenant description			Obligations under the Loan Agreement are secured by a general lien on and security interest in substantially all of the Company’s assets. The Loan Agreement contains covenants that require the Company to maintain a fixed charge coverage ratio of not less than 1.0:1.0 in certain circumstances, and limits the ability
Events of default, description			The Loan Agreement contains customary events of default, including, without limitation, failure to pay when due principal amounts with respect to the credit facility, failure to pay any interest or other amounts under the credit facility, failure to comply with certain agreements or covenants contained in the Loan Agreement, failure to satisfy certain judgments against the Company, failure to pay when due (or any other default which permits the acceleration of) certain other material indebtedness in principal amount in excess of $5.0 million, and certain insolvency and bankruptcy events.
Maximum dividend payment or stock purchase amount	$ 5,000,000.0
Line of Credit Facility default debt minimum amount	$ 5,000,000.0
Loan, Guaranty and Security Agreement [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Fixed charge coverage ratio	100.00%
Loan, Guaranty and Security Agreement [Member] \| SOFR Adjustment [Member]
Debt Instrument [Line Items]
Applicable margin in addition to variable rate	0.10%
Loan, Guaranty and Security Agreement [Member] \| Federal Funds Rate [Member]
Debt Instrument [Line Items]
Applicable margin in addition to variable rate	0.50%
Loan, Guaranty and Security Agreement [Member] \| One-month SOFR Rate [Member]
Debt Instrument [Line Items]
Applicable margin in addition to variable rate	1.00%
Prior Credit Agreement [Member]
Debt Instrument [Line Items]
Write off of deferred debt issuance cost		$ 200,000
Wells Fargo Bank National Association [Member]
Debt Instrument [Line Items]
Remaining borrowing availability			$ 148,900,000		$ 148,900,000

Long-Term Debt - Average Daily Excess Availability for Preceding Fiscal Quarter (Detail) - Loan, Guaranty and Security Agreement [Member]	Feb. 24, 2021
Level I [Member]
Line Of Credit Facility [Line Items]
Average Daily Availability	Greater than or equal to $70,000,000
SOFR Rate Applicable Margin	1.375%
Base Rate Applicable Margin	0.375%
Level II [Member]
Line Of Credit Facility [Line Items]
Average Daily Availability	Less than $70,000,000
SOFR Rate Applicable Margin	1.50%
Base Rate Applicable Margin	0.50%

Income Taxes - Additional Information (Detail) - USD ($)	9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Jan. 02, 2022
Income Tax Contingency [Line Items]
Unrecognized tax benefits	$ 0		$ 0
Unrecognized tax benefits, period	over the next 12 months
Accrued interest or penalties	$ 0		0
California [Member]
Income Tax Contingency [Line Items]
Disaster recovery credit related to fire	$ 200,000
Earliest Tax Year [Member] \| Federal [Member]
Income Tax Contingency [Line Items]
Income tax returns in period	2018
Earliest Tax Year [Member] \| State and Local [Member]
Income Tax Contingency [Line Items]
Income tax returns in period	2017
California Enterprise Zone Tax Credits [Member]
Income Tax Contingency [Line Items]
Deferred tax assets valuation allowance	$ 300,000		$ 300,000
Tax credits carry forward latest expiration year	2024
Change in valuation allowance		$ 300,000

Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Earnings Per Share Basic [Line Items]
Net income	$ 6,369	$ 24,131	$ 24,406	$ 82,480
Weighted-average shares of common stock outstanding:
Basic	21,586,000	21,798,000	21,647,000	21,654,000
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards	344,000	736,000	474,000	871,000
Diluted	21,930,000	22,534,000	22,121,000	22,525,000
Basic earnings per share	$ 0.30	$ 1.11	$ 1.13	$ 3.81
Diluted earnings per share	$ 0.29	$ 1.07	$ 1.10	$ 3.66
Share Option Awards [Member]
Weighted-average shares of common stock outstanding:
Antidilutive shares/unit awards excluded from diluted calculation	20,000	0	15,000	0
Nonvested Share Awards and Nonvested Share Unit Awards [Member]
Weighted-average shares of common stock outstanding:
Antidilutive shares/unit awards excluded from diluted calculation	389,000		172,000	7,000

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Share Option Awards [Member]
Earnings Per Share Basic [Line Items]
Antidilutive options	20,000	0	15,000	0
Nonvested Shares Awards [Member]
Earnings Per Share Basic [Line Items]
Antidilutive options		0
Nonvested Shares Unit Awards [Member]
Earnings Per Share Basic [Line Items]
Antidilutive options	0	0	0	0

Commitments and Contingencies - Additional Information (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 04, 2021 USD ($)	Jun. 28, 2020 USD ($) Store	Oct. 03, 2021 USD ($)
Commitments And Contingencies [Line Items]
Number of stores destroyed in civil unrest \| Store		7
Loss contingency, total loss		$ 600
Deduction on settlement	$ 300
Proceeds from cash insurance recovery total, net of insurance deductible	1,300
Proceeds from insurance recovery			$ 1,083
Proceeds from insurance recovery - property and equipment	200		249
Gain on recovery of insurance proceeds - lost profit margin and business interruption	500		460
Gain on recovery of insurance proceeds - property and equipment	200		$ 249
Lost Inventory and Profit Margin [Member]
Commitments And Contingencies [Line Items]
Proceeds from insurance recovery	1,000
Business Interruption [Member]
Commitments And Contingencies [Line Items]
Proceeds from insurance recovery	$ 100

Share-based Compensation - Additional Information (Detail)		1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 14, 2022 shares	Nov. 30, 2021 Member	Oct. 02, 2022 USD ($) $ / shares shares	Oct. 03, 2021 USD ($)	Oct. 02, 2022 USD ($) $ / shares shares	Oct. 03, 2021 USD ($) $ / shares shares	Jun. 30, 2022 shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Compensation expense \| $			$ 600,000	$ 500,000	$ 1,800,000	$ 1,400,000
Granted, shares \| shares					10,000
Expected dividend yield					7.40%
Shares withheld for tax requirements \| shares					77,340
Tax withholding payments for share-based compensation \| $					$ 1,212,000	$ 1,046,000
Common Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Closing stock price per share \| $ / shares			$ 10.74		$ 10.74
Share Option Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum expiration period of share based payment awards granted					10 years
Granted, shares \| shares					10,000	0
Weighted-average grant-date fair value per share \| $ / shares					$ 5.46
Unrecognized compensation expense \| $			$ 300,000		$ 300,000
Weighted-average period of recognition					1 year 3 months 18 days
Share Option Awards [Member] \| Share-based Compensation Award, Tranche One [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting rights (as percentage)					25.00%
Performance Shares [Member] \| Share-based Compensation Award, Tranche One [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting rights (as percentage)					25.00%
Performance Shares [Member] \| Share-based Compensation Award, Tranche One [Member] \| Non-Employee Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting rights (as percentage)					100.00%
Nonvested Share Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average period of recognition					2 years 4 months 24 days
Fair value of nonvested share awards \| $					$ 3,300,000	$ 5,300,000
Issuance of nonvested share awards, Shares \| shares					284,630	248,550
Weighted-average grant-date fair value per share, granted \| $ / shares					$ 15.03	$ 15.61
Unrecognized compensation expenses \| $			5,500,000		$ 5,500,000
Nonvested Share Unit Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Fair value of nonvested share awards \| $					0	$ 1,200,000
Unrecognized compensation expenses \| $			$ 0		$ 0
Nonvested Share Unit Awards [Member] \| Board Members [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares vested included in dividend reinvestments \| shares	124,012
Number of persons retired \| Member		1
2019 Equity Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of additional shares available for future grant \| shares							3,300,000
Shares available for future grant \| shares			1,055,807		1,055,807

Share-based Compensation - Summary of Share Option Awards (Detail) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Oct. 02, 2022
Share-Based Payment Arrangement [Abstract]
Shares, Outstanding at January 2, 2022	383,035
Shares, Granted	10,000
Shares, Exercised	(81,200)
Shares, Forfeited	(9,600)
Shares, Outstanding at October 2, 2022	302,235
Shares, Exercisable at October 2, 2022	106,390
Shares, Vested and Expected to Vest at October 2, 2022	301,479
Weighted-Average Exercise Price, Outstanding at January 2, 2022	$ 3.96
Weighted-Average Exercise Price, Granted	13.35
Weighted-Average Exercise Price, Exercised	4.12
Weighted-Average Exercise Price, Forfeited	2.81
Weighted-Average Exercise Price, Outstanding at October 2, 2022	4.26
Weighted-Average Exercise Price, Exercisable at October 2, 2022	3.96
Weighted-Average Exercise Price, Vested and Expected to Vest at October 2, 2022	$ 4.25
Weighted-Average Remaining Contractual Life (In Years), Outstanding at October 2, 2022	7 years 14 days
Weighted-Average Remaining Contractual Life (In Years), Exercisable at October 2, 2022	6 years 6 months 3 days
Weighted-Average Remaining Contractual Life (In Years), Vested and Expected to Vest at October 2, 2022	7 years 14 days
Aggregate Intrinsic Value, Outstanding at October 2, 2022	$ 2,125,002
Aggregate Intrinsic Value, Exercisable at October 2, 2022	721,349
Aggregate Intrinsic Value, Vested and Expected to Vest at October 2, 2022	$ 2,120,508

Share-based Compensation - Fair Value of Share Option Award Based on Weighted-Average Assumptions (Detail)	9 Months Ended
	Oct. 02, 2022
Share-Based Payment Arrangement [Abstract]
Risk-free interest rate	2.70%
Expected term	6 years 6 months
Expected volatility	80.80%
Expected dividend yield	7.40%

Share-based Compensation - Summary of Nonvested Share Awards Activity (Detail) - Nonvested Share Awards [Member] - $ / shares	9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested shares, beginning balance	551,700
Granted, shares	284,630	248,550
Vested, shares	(216,700)
Forfeited, shares	(29,920)
Nonvested shares, ending balance	589,710
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted-Average Grant-Date Fair Value, Beginning Balance	$ 8.51
Weighted-Average Grant-Date Fair Value, Granted	15.03	$ 15.61
Weighted-Average Grant-Date Fair Value, Vested	8.19
Weighted-Average Grant-Date Fair Value, Forfeited	11.14
Weighted-Average Grant-Date Fair Value, Ending Balance	$ 11.64

Subsequent Events - Additional Information (Detail) - Subsequent Event [Member]	Oct. 27, 2022 $ / shares
Dividends Payable [Line Items]
Dividend per share	$ 0.25
Dividend declared per share, payable date	Dec. 15, 2022
Dividend declared per share, record date	Dec. 01, 2022