The following discussion and analysis of financial condition and results of operations should be read in conjunction with our Management's Discussion and Analysis of Financial Condition and Results of Operations for Fiscal 2020 which can be found in our Fiscal 2020 Form 10-K. In addition, the following discussion and analysis of financial condition and results of operations are based upon our Consolidated Financial Statements and should be read in conjunction with these statements and notes thereto.
Executive Overview
We are a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under our American Eagle® and Aerie® brands.
In the fourth quarter of Fiscal 2020, we revised our reportable segment structure and have two reportable segments, American Eagle and Aerie. Our Chief Operating Decision Maker (defined as our CEO) analyzes segment results and allocates resources based on adjusted operating income (loss). See Note 12. "Segment Reporting," of the Notes to the Consolidated Financial Statements included herein for additional information.
In the first quarter of Fiscal 2021, we realized better than expected sales, primarily due to continued increased strong demand for the Aerie brand. Strategically and operationally, we remain focused on driving our "Real Power . Real Growth" strategic plan. For the American Eagle brand, we continue to be focused on optimizing inventory and reducing promotions.
Quarterly Results for First Quarter of Fiscal 2021
Financial highlights for the three months endedMay 1, 2021 include comparisons to the first quarter of Fiscal 2019, which management believes is a more meaningful comparison due to the significant impacts of the COVID-19 pandemic on Fiscal 2020 financial results:
•All-time high first quarter revenue of
•Record operating income of
•Gross margin increased 550 basis points to 42.2%;
•Revenue for Aerie rose 89%, with operating income up 747%;
•American Eagle revenue rose slightly, with operating income up 39%; and
•Digital momentum continued, with digital revenue up 57%.
Key Performance Indicators
Our management evaluates the following items, which are considered key performance indicators, in assessing our performance:
Comparable sales - Comparable sales and comparable sales changes provide a measure of sales growth for stores and channels open at least one year over the comparable prior year period. In light of store closures and related disruptions from COVID-19, we have not disclosed comparable sales for the first quarter of Fiscal 2021 or Fiscal 2020, as Fiscal 2020 is not comparable with current and prior periods. Omni-channel Sales Performance - Our management utilizes the following quality of sales metrics in evaluating our omni-channel sales performance: comparable sales, average unit retail price, total transactions, units per transaction, and consolidated comparable traffic. We include these metrics in our discussion within this Management's Discussion and Analysis ("MD&A") when we believe they enhance the understanding of the matter being discussed. Investors may find them useful as such. Each of these metrics is defined as follows (except comparable sales, which is defined separately above):
• Average unit retail price represents the selling price of our goods. It is
the cumulative net sales divided by the net units sold for a period of time.
• Total transactions represents the count of customer transactions over a
period of time (inclusive of company-owned stores and AEO Direct, unless
specified otherwise).
• Units per transaction represents the number of units sold divided by total
transactions over a period of time (inclusive of company-owned stores and AEO
Direct, unless specified otherwise). 29
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• Consolidated comparable traffic represents visits to our company-owned
stores, limited to those stores that qualify to be included in comparable
sales as defined above, including AEO Direct, over a period of time
Gross profit - Gross profit measures whether we are optimizing the profitability of our sales. Gross profit is the difference between total net revenue and cost of sales. Cost of sales consists of merchandise costs, including design, sourcing, importing, and inbound freight costs, as well as markdowns, shrinkage, and certain promotional costs (collectively "merchandise costs") and buying, occupancy and warehousing costs. Design costs consist of compensation, rent, depreciation, travel, supplies, and samples. Buying, occupancy and warehousing costs consist of: compensation, employee benefit expenses, and travel for our buyers and certain senior merchandising executives; rent and utilities related to our stores, corporate headquarters, distribution centers, and other office space; freight from our distribution centers to the stores; compensation and supplies for our distribution centers, including purchasing, receiving, and inspection costs; and shipping and handling costs related to our e-commerce operations.
The inability to obtain acceptable levels of sales, initial markups, or any significant increase in our use of markdowns could have an adverse effect on our gross profit and results of operations.
Operating income - Our management views operating income as a key indicator of our performance. The key drivers of operating income are net revenue, gross profit, our ability to control selling, general, and administrative expenses, and our level of capital expenditures for a reasonable period of time. In light of store closures and disruptions from COVID-19, our operating income may not be comparable this year versus last year. Cash flow and liquidity - Our management evaluates cash flow from operations, investing and financing activities in determining the sufficiency of our cash position and capital allocation strategies. Cash flow has historically been sufficient to cover our uses of cash. Our management believes that cash flow will be sufficient to fund anticipated capital expenditures, dividends, and working capital requirements for the next twelve months.
COVID-19
The COVID-19 pandemic remains highly volatile and continues to evolve on a daily basis, and we continue to see disruption and volatility in our business caused by the COVID-19 pandemic. As ofMay 1, 2021 , nearly all of our stores have re-opened and remain open. Where opening is permitted, the majority of our stores are operating with restrictive and precautionary measures in place, such as reduced operating hours, physical distancing, enhanced cleaning and sanitation, and limited occupancy levels. Our consolidated results of operations continued to be significantly impacted by reduced customer traffic in re-opened store locations, partially offset by continued growth in e-commerce. Online sales represented 40% of our revenues for the first quarter of Fiscal 2021. Despite our strength in digital sales, we have historically generated the majority of our revenue through stores. As a result, we do not believe that our results for the first quarter of Fiscal 2021 are directly comparable to the same period in Fiscal 2020. The safety and health of our associates and customers remains of paramount concern. InMarch 2020 , we hired a medical consultant to advise us on health and safety matters and to ensure that we are following science based guidance and best practices for associates and customers in all of our locations. We instituted a work-from-home plan inmid-March 2020 ahead of stay-at-home orders. We continue to take various precautions in our stores, which include sanitation stations and masks for all customers to provide a safe and secure environment. Plexiglas health guard partitions have also been installed at the registers along with the implementation of enhanced cleaning routines and protocols. As ofMay 1, 2021 , we had approximately$791.7 million in cash and cash equivalents and short-term investments, which includes the proceeds from our Notes issuance, discussed in greater detail below and in Note 8 to the Consolidated Financial Statements. We expect to be able to fund our future cash requirements through current cash holdings and available liquidity. The unpredictability of the trajectory of the COVID-19 pandemic has significantly diminished visibility into the future operating environment, and we believe that the Company may continue to experience degrees of volatility and business disruptions, and remain at risk for periods of closure of our stores, distribution centers and corporate facilities through the remainder of Fiscal 2021. Past and future impacts of COVID-19 also have the ability to disrupt the operations of our partners, suppliers and vendors, which could lead to supply chain disruption, shipping delays, and freight cost increases. We are monitoring the ongoing developments as the COVID-19 vaccines are being distributed and administered, and will take further actions that are in the best interests of our associates and customers, as needed. For further information about the risks associated with the COVID-19 pandemic, see "Risk Factors" in Part I, Item 1A of our Fiscal 2020 Form 10-K. 30
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Results of Operations
Overview
Our first quarter 2021 results reflected an acceleration in our business and excellent progress towards our "Real Power . Real Growth." strategic plan. The Company recorded record first quarter revenue and operating income with positive growth across brands. Demand for Aerie's product and powerful brand platform continued at a rapid pace, while American Eagle initiatives reignited the brand. Absent the impacts of the COVID-19 pandemic, our business is affected by the pattern of seasonality common to most retail apparel businesses. The results for the current and prior periods are not necessarily indicative of future financial results. Additionally, during the 13 weeks endedMay 2, 2020 , our consolidated results of operations were materially impacted by the effects of COVID-19. Commencing in earlyMarch 2020 , we experienced a significant reduction in customer traffic and demand resulting from the continued spread of COVID-19 and government actions to combat it. In response, we closed our stores to the public after the close of business onMarch 17, 2020 ; however, we continued to operate our digital business. Accordingly, our results for the first quarter of Fiscal 2020 were significantly impacted. The following table shows the percentage relationship to total net revenue of the listed line items included in our Consolidated Statements of Operations: 13 Weeks Ended May 1, May 2, 2021 2020 Total net revenue 100.0 % 100.0 %
Cost of sales, including certain buying, occupancy
and warehousing expenses 57.8 94.9 Gross profit 42.2 5.1 Selling, general and administrative expenses 25.6 34.1 Impairment and restructuring charges - 28.2 Depreciation and amortization expense 3.7 7.7 Operating income (loss) 12.9 (64.9 ) Interest expense, net 0.8 0.1 Other (income) expense, net (0.2 ) 0.5 Income (loss) before income taxes 12.3 (65.5 ) Provision (benefit) for income taxes 3.1 (18.9 ) Net income (loss) 9.2 % (46.6 ) %
The following table shows our consolidated store data:
13 Weeks Ended May 1, May 2, 2021 2020 Number of stores: Beginning of period 1,078 1,095 Opened 11 3 Closed (15 ) (5 ) End of period 1,074 1,093
Total gross square feet at end of period (in '000) 6,816 6,822 International licensed/franchise stores at end of
period (1) 236 215 (1) International licensed/franchise stores are not included in the consolidated store data or the total gross square feet calculation. Our operations consist of 891 American Eagle retail stores, which include 177 Aerie side-by-side locations and 1 OFFLINE side-by-side location, 179 Aerie stand-alone locations (including 5 OFFLINE stand-alone locations), and AEO Direct. Additionally, there were twoTodd Snyder stand-alone locations and two Unsubscribed locations. 31
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Non-GAAP Information
This results of operations section contains net income (loss) per diluted share presented on an adjusted or non-GAAP basis, which is a non-GAAP financial measure ("non-GAAP" or "adjusted"). This financial measure is not based on any standardized methodology prescribed byU.S. generally accepted accounting principles ("GAAP") and is not necessarily comparable to similar measures presented by other companies. Non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. We believe that this non-GAAP information is useful as an additional means for investors to evaluate our operating performance, when reviewed in conjunction with our GAAP consolidated financial statements and provides a higher degree of transparency. These amounts are not determined in accordance with GAAP and, therefore, should not be used exclusively in evaluating our business and operations. The table below reconciles the GAAP financial measure to the non-GAAP financial measure discussed above. 13 Weeks EndedMay 1 ,May 2, 2021 2020
Net income (loss) per diluted share - GAAP Basis
-
0.69
Add: Restructuring charges(2) -
0.01
Add: Convertible Debt(3) 0.02 -
Net income (loss) per diluted share - Adjusted or Non-
GAAP Basis$ 0.48 $ (0.84 )
(1) 13 weeks ended
Included in this amount are retail store impairment charges of
million, of which
equipment and leasehold improvements). We also recorded
impairment related charges to certain corporate property and equipment as
well as$18.0 million of impairment charges related to certain cost and equity method investments.
(2) 13 weeks ended
(3) Amortization of the non-cash discount on the Notes
Comparison of the 13 weeks ended
Total Net Revenue
Total net revenue increased 88%, or$483 million , to a first quarter record$1,034.6 billion compared to$551.7 million last year. The COVID-19 pandemic and the associated closures of our retail stores beginningMarch 17, 2020 negatively affected our financial results for the 13 weeks endedMay 2, 2020 . As ofMay 1, 2021 , nearly all of our stores have reopened and remain opened.
American Eagle
Total net revenue for the 13 weeks ended
Aerie
Total net revenue for the 13 weeks endedMay 1, 2021 for the Aerie brand was$297.5 million compared to$155.0 million for the 13 weeks endedMay 2, 2020 . Traffic for the Aerie brand was up 83% and average unit retail price increased 30%. Gross Profit
Gross profit increased
The 13 weeks endedMay 2, 2020 were significantly impacted by disruptions related to COVID-19, which resulted in a decline in revenue from retail store closures; higher markdowns and promotions to clear through spring and summer merchandise, and inventory provisions. This year's gross margin reflected significantly higher merchandise margins across brands, primarily due to higher full-priced sales, lower promotions and inventory optimization initiatives. Lower rent expense also benefited the gross margin. This was partly offset by higher delivery and distribution center costs, due to increased digital mix and higher shipment costs, as well as increased performance-based incentive compensation. 32 -------------------------------------------------------------------------------- There was$4.3 million and$2.6 million of share-based payment expense included in gross profit for the periods endedMay 1, 2021 andMay 2, 2020 , respectively, comprised of both time- and performance-based awards. Our gross profit may not be comparable to that of other retailers, as some retailers include all costs related to their distribution network, as well as design costs in cost of sales and others may exclude a portion of these costs from cost of sales, including them in a line item such as selling, general and administrative expenses. Refer to Note 2 to the Consolidated Financial Statements for a description of our accounting policy regarding cost of sales, including certain buying, occupancy and warehousing expenses.
Selling, General and Administrative Expenses
Selling, general and administrative ("SG&A") expenses increased 41% or$76.3 million to$264.5 million from$188.2 million last year. As a percentage of total net revenue, SG&A expenses decreased 850 basis points to 25.6%, compared to 34.1% last year. The 13 weeks endedMay 2, 2020 were significantly impacted by the disruption related to COVID-19, including the impact of lower store salaries from furloughs that took effect in earlyApril 2020 related to the retail store closures resulting from COVID-19. The 13 weeks endedMay 1, 2021 reflected increased SG&A expenses due to higher levels of performance-based incentive compensation, an increase in corporate salaries and higher variable selling expenses.
There was
Impairment and Restructuring Charges
There were no impairment and restructuring charges recorded for the 13 weeks endedMay 1, 2021 . Impairment and restructuring charges were$155.6 million , or 28.2% as a percentage of total net revenue, for the 13 weeks endedMay 2, 2020 . These charges consisted of$153.6 million of impairment charges and$2.0 million of severance costs. For further information regarding impairment and restructuring charges, refer to Note 13 to the Consolidated Financial Statements. Based on the uncertainty from the COVID-19 pandemic, we are unable to accurately predict the ultimate impact that COVID-19 will have on our consolidated operations going forward, including, among other things, the length of time that such disruptions continue and the impact of governmental regulations that may be imposed in response to the COVID-19 pandemic. Accordingly, we may be required to record further impairment and/or restructuring charges in future periods and expect to continue to incur charges for personal protective equipment and supplies for our associates and customers.
Depreciation and Amortization Expense
Depreciation and amortization expense decreased 10% or$4.4 million , to$38.3 million for the 13 weeks endedMay 1, 2021 , compared to$42.7 million for the 13 weeks endedMay 2, 2020 . As a percentage of total net revenue, depreciation and amortization expense was 3.7% for the 13 weeks endedMay 1, 2021 compared to 7.7% for the 13 weeks endedMay 2, 2020 . The decrease in expense was primarily attributable to asset impairment recorded in Fiscal 2020 and lower capital spending.
Interest Expense, Net
Interest expense increased$8.4 million , to$8.5 million , for the 13 weeks endedMay 1, 2021 , compared to$0.1 million for the 13 weeks endedMay 2, 2020 . The increase in expense was primarily attributable to increased interest expense related to our Notes and lower interest income.
Other (Income) Expense, Net
Other income, net was$1.9 million for the 13 weeks endedMay 1, 2021 . Other expense, net was$3.0 million for the 13 weeks endedMay 2, 2020 . The increase was primarily attributable to foreign currency fluctuations and changes in other non-operating items. 33
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Provision for Income Taxes
The provision for income taxes is based on the current estimate of the annual effective income tax rate and is adjusted as necessary for discrete quarterly events. The effective income tax rate for the 13 weeks endedMay 1, 2021 was 24.7% compared to the effective tax benefit rate of 28.8% for the 13 weeks endedMay 2, 2020 . The decrease in the effective tax rate, as compared to the prior period, is primarily due to benefits recognized as a result of the passage of the CARES Act which occurred during the 13 weeks endedMay 2, 2020 . The CARES Act allowed net operating losses generated within tax year 2020 to be carried back to periods in which theU.S. federal corporate income tax rate was 35%, as opposed to the currentU.S federal corporate income tax rate of 21%, which resulted in a higher benefit rate applicable to the 13 weeks endedMay 2, 2020 . The effective tax rate for the current period was also impacted by higher excess tax benefits on share-based payments. Net Income (Loss) Net income increased$352.6 million , to$95.5 million for the 13 weeks endedMay 1, 2021 , or 9.2% as a percentage of total net revenue, as compared to a net loss of$(257.2) million , or (46.6%) as a percentage of total net revenue for the 13 weeks endedMay 2, 2020 . Net income per share increased to$0.46 per diluted share for the 13 weeks endedMay 1, 2021 , which included$0.02 of the amortization of the non-cash discount on the Notes, compared to a net loss of$1.54 per diluted share, including$0.70 of impairment and restructuring charges, for the 13 weeks endedMay 2, 2020 . The change in net income was attributable to the factors noted above.
International Operations
We have agreements with multiple third-party operators to expand our brands internationally. Through these agreements, a series of franchised, licensed, or other brand-dedicated American Eagle stores have opened and will continue to open in areas includingAsia ,Europe ,India ,Latin America , and theMiddle East . These agreements do not involve a significant capital investment or operational involvement from us. We continue to increase the number of countries in which we enter into these types of arrangements as part of our strategy to expand internationally. As ofMay 1, 2021 , we had 236 stores operated by our third party operators in 33 countries. International third-party operated stores are not included in the consolidated store data or the total gross square feet calculation.
As of
Fair Value Measurements
ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosures about fair value measurements. Fair value is defined under ASC 820 as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date.
Financial Instruments
Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. In addition, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:
• Level 1 - Quoted prices in active markets.
• Level 2 - Inputs other than Level 1 that are observable, either directly or
indirectly.
• Level 3 - Unobservable inputs that are supported by little or no market
activity and that are significant to the fair value of the assets or
liabilities.
As ofMay 1, 2021 , we held certain assets that are required to be measured at fair value on a recurring basis. These include cash and cash equivalents and short-term investments. 34
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In accordance with ASC 820, the following table represents the fair value
hierarchy of our financial assets (cash equivalents and investments) measured at
fair value on a recurring basis as of
Fair Value Measurements at May 1, 2021 Quoted Market Prices in Active Markets for Significant Identical Significant Other Unobservable Assets Observable Inputs Inputs (In thousands) Carrying Amount (Level 1) (Level 2) (Level 3) Cash and cash equivalents: Cash $ 466,014 $ 466,014 $ - $ - Interest bearing deposits 225,665 225,665 - - Certificates of Deposit 25,000 25,000 - - Total cash and cash equivalents $ 716,679 $ 716,679 - - Short-term investments Certificates of Deposit $ 75,000 $ 75,000 - - Total short-term investments $ 75,000 $ 75,000 Total $ 791,679 $ 791,679 - - Long-Term Debt The fair value of the Notes is not required to be measured at fair value on a recurring basis. Upon issuance, the fair value of the Notes was measured using two approaches that consider market related conditions, including market benchmark rates and a secondary market quoted price, and is therefore within Level 2 of the fair value hierarchy.
Liquidity and Capital Resources
Our uses of cash have historically been for working capital, the construction of new stores and remodeling of existing stores, information technology and e-commerce upgrades and investments, distribution center improvements and expansion and the return of value to shareholders through the repurchase of common stock, and the payment of dividends. Additionally, our uses of cash have included the development of the Aerie brand, investments in technology and omni-channel capabilities, and our international expansion efforts. Historically, our uses of cash have been funded with cash flow from operations and existing cash on hand. We also maintain an asset-based revolving credit facility that allows us to borrow up to$400 million , which will expire inJanuary 2024 . InApril 2020 , the Company issued$415 million aggregate principal amount of 3.75% convertible senior notes due in 2025 in a private placement to qualified institutional buyers. Interest is payable semi-annually. Refer to Note 8 to the Consolidated Financial Statements for additional information regarding our long-term debt. As ofMay 1, 2021 , we had approximately$791.7 million in cash and cash equivalents and short-term investments, which includes the proceeds from the Notes. We expect to be able to fund our future cash requirements through current cash holdings and available liquidity.
The following sets forth certain measures of our liquidity:
May 1, January 30, May 2, 2021 2021 2020
Working Capital (in thousands)
2.01 1.77 2.35 Working capital increased$87.1 million compared toJanuary 30, 2021 and decreased$145.4 million compared to last year. The$145.4 million decrease in our working capital compared toMay 2, 2021 , is driven by a$94.0 million decrease in cash and short-term investments, a$56.4 million decrease in prepaid expenses, a$65.9 million increase in accrued compensation, and a$54.8 million increase in accounts payable; a$45.0 increase in inventory, and a$42.3 million increase 35
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in net accounts receivable, a
Cash Flows provided by (used for) Operating Activities
Net cash provided by operating activities totaled$0.4 million for the 13 weeks endedMay 1, 2021 , compared to net cash used for operating activities of$(209.9) million for the 13 weeks endedMay 2, 2020 . Our primary outflow for the 13 weeks endedMay 1, 2021 was for the payment of operational costs. For the period endedMay 2, 2020 , our major source of cash from operations was merchandise sales and our primary outflow of cash for operations was for the payment of operational costs.
Cash Flows used for Investing Activities
Net cash used for investing activities totaled$112.2 million for the 13 weeks endedMay 1, 2021 , compared to net cash used for investing activities of$9.1 million for the 13 weeks endedMay 2, 2020 . Investing activities for the 13 weeks endedMay 1, 2021 primarily consisted of$75.0 million of short-term investment purchases and$36.8 million of capital expenditures for property and equipment. Investing activities for the 13 weeks endedMay 2, 2020 primarily included$33.9 million of capital expenditures for property and equipment, partially offset by$25.0 million of net short-term investment sales.
Cash Flows (used for) provided by Financing Activities
Net cash used for financing activities totaled$22.1 million for the 13 weeks endedMay 1, 2021 , compared to net cash provided by financing activities of$714.6 million for the 13 weeks endedMay 2, 2020 . Cash used for financing activities for the 13 weeks endedMay 2, 2021 consisted primarily of$22.9 million for cash dividends paid at a quarterly rate of$0.1375 and$10.9 million for the repurchase of common stock from employees for the payment of taxes in connection with vesting of share-based payments, partially offset by$12.1 million of proceeds from stock option exercises. Cash provided by financing activities for the 13 weeks endedMay 2, 2020 consisted primarily of$406.1 million of net proceeds from the issuance of the Notes and$330.0 million of borrowings on our Credit Facilities, partially offset by$20.0 million used for purchases of 1.7 million shares of common stock under publicly-announced programs inearly-March 2020 , and$1.4 million for the repurchase of common stock from employees for the payment of taxes in connection with the vesting of share-based payments. We borrowed on our Credit Facilities and issued the Notes to strengthen our cash position and provide us with additional financial flexibility during the remainder of the ongoing COVID-19 pandemic. Credit Facilities InJanuary 2019 , we entered into a Credit Agreement for five-year, syndicated, asset-based revolving Credit Facilities. The Credit Agreement provides senior secured revolving credit for loans and letters of credit up to$400 million , subject to customary borrowing base limitations. The Credit Facilities expireJanuary 30, 2024 . All obligations under the Credit Facilities are unconditionally guaranteed by certain subsidiaries. The obligations under the Credit Agreement are secured by a first-priority security interest in certain working capital assets of the borrowers and guarantors, consisting primarily of cash, receivables, inventory, and certain other assets and have been further secured by first-priority mortgages on certain real property. As ofMay 1, 2021 , the Company was in compliance with the terms of the Credit Agreement and had$7.9 million outstanding in stand-by letters of credit. No loans were outstanding under the Credit Agreement as ofMay 1, 2021 .
Capital Expenditures for Property and Equipment
Capital expenditures for the 13 weeks endedMay 1, 2021 were$36.8 million , and included$18.9 million related to investments in our stores, including 11 new AEO stores (four American Eagle stores, six Aerie stand-alone stores (including one OFFLINE store), and one Unsubscribed store), three remodeled and refurbished stores, and fixtures and visual investments. Additionally, we continued to support our infrastructure growth by investing in information technology initiatives ($10.8 million ), e-commerce ($3.2 million ) and other home office projects ($3.9 million ). 36
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For Fiscal 2021, we expect capital expenditures to be in the range of
Stock Repurchases
During Fiscal 2019, our Board authorized the repurchase of 30.0 million shares
under a new share repurchase program, which expires on
In Fiscal 2020, to preserve cash liquidity in response to the uncertainty created by the impact of COVID-19, the Company suspended its publicly-announced share repurchase program. The Company unsuspended its share repurchase program at the beginning of Fiscal 2021, but did not repurchase any shares under this program during the 13 weeks endedMay 1, 2021 . During the 13 weeks endedMay 2, 2020 , as part of our publicly-announced share repurchase program, we repurchased 1.7 million shares for$20.0 million , at a weighted average price of$11.63 per share. During the 13 weeks endedMay 1, 2021 andMay 2, 2020 , we repurchased approximately 0.4 million and 0.1 million shares, respectively, from certain employees at market prices totaling$10.9 million and$1.4 million , respectively. These shares were repurchased for the payment of taxes, in connection with the vesting of share-based payments, as permitted under our equity incentive plans. The aforementioned shares repurchased shares have been recorded as treasury stock.
Dividends
During the 13 weeks endedMay 1, 2021 , our Board of Directors ("Board") declared a quarterly cash dividend of$0.1375 per share onMarch 2, 2021 , which was paid onMarch 26, 2021 . During the 13 weeks endedMay 2, 2020 , our Board declared a quarterly cash dividend of$0.1375 per share onMarch 26, 2020 , originally payable onMay 14, 2020 to stockholders of record at the close of business onApril 30, 2020 . As part of our efforts to carefully manage the impact of COVID-19 on our liquidity, the first quarter dividend payment was deferred and paid onDecember 30, 2020 to stockholders of record at the close of business onDecember 16, 2020 . The Company maintains the right to defer the record and payment dates of its dividends, depending upon, among other factors, the progression of the COVID-19 outbreak, business performance, and the macroeconomic environment. The payment of future dividends is at the discretion of our Board and is based on future earnings, cash flow, financial condition, capital requirements, changes inU.S. taxation, and other relevant factors.
Critical Accounting Policies and Estimates
Our critical accounting policies and estimates are described in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, and in the Notes to our Consolidated Financial Statements for the year endedJanuary 30, 2021 contained in our Fiscal 2020 Form 10-K. Any new accounting policies or updates to existing accounting policies as a result of new accounting pronouncements have been discussed in the notes to our Consolidated Financial Statements in this Quarterly Report on Form 10-Q. The application of our critical accounting policies and estimates may require our management to make judgments and estimates about the amounts reflected in the Consolidated Financial Statements. Our management uses historical experience and all available information to make these estimates and judgments, and different amounts could be reported using different assumptions and estimates.
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