Lululemon Athletica (LULU) 10-Q 10 Sep 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Aug. 02, 2015	Sep. 04, 2015
Document Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Aug. 2, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Trading Symbol	LULU
Entity Registrant Name	lululemon athletica inc.
Entity Central Index Key	1,397,187
Current Fiscal Year End Date	--01-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		130,710,657

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Aug. 02, 2015	Feb. 01, 2015
Current assets
Cash and cash equivalents	$ 541,262	$ 664,479
Accounts receivable	12,209	13,746
Inventories	280,607	208,116
Prepaid expenses and other current assets	84,191	64,671
Total current assets	918,269	951,012
Property and equipment, net	324,093	296,008
Goodwill and intangible assets, net	25,611	26,163
Deferred income tax assets	15,667	16,018
Other non-current assets	10,581	7,012
Total assets	1,294,221	1,296,213
Current liabilities
Accounts payable	7,488	9,339
Accrued inventory liabilities	35,545	22,296
Accrued compensation and related expenses	33,050	29,932
Income taxes payable	1,239	20,073
Unredeemed gift card liability	36,148	46,252
Other accrued liabilities	34,638	31,989
Total current liabilities	148,108	159,881
Deferred income tax liabilities	3,545	3,633
Other non-current liabilities	47,100	43,131
Total liabilities	198,753	206,645
Stockholders' equity
Undesignated preferred stock, $0.01 par value, 5,000 shares authorized, none issued and outstanding	0	0
Exchangeable stock, no par value, 60,000 shares authorized, issued and outstanding 9,833 and 9,833	0	0
Special voting stock, $0.000005 par value, 60,000 shares authorized, issued and outstanding 9,833 and 9,833	0	0
Common stock, $0.005 par value, 400,000 shares authorized, issued and outstanding 131,104 and 132,112	656	661
Additional paid-in capital	249,078	241,695
Retained earnings	1,035,903	1,020,619
Accumulated other comprehensive loss	(190,169)	(173,407)
Total stockholders' equity	1,095,468	1,089,568
Total liabilities and stockholders' equity	$ 1,294,221	$ 1,296,213

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Aug. 02, 2015	Feb. 01, 2015
Statement of Financial Position [Abstract]
Undesignated preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Undesignated preferred stock, shares authorized	5,000,000	5,000,000
Undesignated preferred stock, shares issued	0	0
Undesignated preferred stock, shares outstanding	0	0
Exchangeable stock, shares authorized	60,000,000	60,000,000
Exchangeable stock, shares issued	9,833,000	9,833,000
Exchangeable stock, shares outstanding	9,833,000	9,833,000
Special voting stock, par value (in dollars per share)	$ 0.000005	$ 0.000005
Special voting stock, shares authorized	60,000,000	60,000,000
Special voting stock, shares issued	9,833,000	9,833,000
Special voting stock, shares outstanding	9,833,000	9,833,000
Common stock, par value (in dollars per share)	$ 0.005	$ 0.005
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	131,104,000	132,112,000
Common stock, shares outstanding	131,104,000	132,112,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014
Income Statement [Abstract]
Net revenue	$ 453,010	$ 390,708	$ 876,554	$ 775,326
Cost of goods sold	240,985	193,401	458,652	382,275
Gross profit	212,025	197,307	417,902	393,051
Selling, general and administrative expenses	145,446	129,419	283,287	255,362
Income from operations	66,579	67,888	134,615	137,689
Other income, net	842	1,890	1,371	3,533
Income before provision for income taxes	67,421	69,778	135,986	141,222
Provision for income taxes	19,753	21,030	40,508	73,493
Net income	47,668	48,748	95,478	67,729
Other comprehensive (loss) income:
Foreign currency translation adjustment	(39,368)	3,664	(16,762)	16,054
Comprehensive income	$ 8,300	$ 52,412	$ 78,716	$ 83,783
Basic earnings per share (in dollars per share)	$ 0.34	$ 0.34	$ 0.67	$ 0.47
Diluted earnings per share (in dollars per share)	$ 0.34	$ 0.33	$ 0.67	$ 0.46
Basic weighted-average number of shares outstanding	141,372	145,180	141,656	145,282
Diluted weighted-average number of shares outstanding	141,644	145,544	141,977	145,715

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 6 months ended Aug. 02, 2015 - USD ($) shares in Thousands, $ in Thousands	Total	Exchangeable Stock [Member]	Special Voting Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]
Beginning balance at Feb. 01, 2015	$ 1,089,568	$ 0	$ 0	$ 661	$ 241,695	$ 1,020,619	$ (173,407)
Beginning balance, shares at Feb. 01, 2015		9,833	9,833	132,112
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	95,478					95,478
Foreign currency translation adjustment	(16,762)						(16,762)
Stock-based compensation expense	6,021				6,021
Excess tax benefit from stock-based compensation	649				649
Common stock issued upon settlement of stock-based compensation	4,121			$ 1	4,120
Common stock issued upon settlement of stock-based compensation, shares				285
Shares withheld related to net share settlement of stock-based compensation	(1,464)			$ 0	(1,464)
Shares withheld related to net share settlement of stock-based compensation, shares				(23)
Repurchase of common stock	$ (81,998)			$ (6)	(1,798)	(80,194)
Repurchase of common stock, shares	(1,270)			(1,270)
Registration fees associated with prospectus supplement	$ (145)				(145)
Ending balance at Aug. 02, 2015	$ 1,095,468	$ 0	$ 0	$ 656	$ 249,078	$ 1,035,903	$ (190,169)
Ending balance, shares at Aug. 02, 2015		9,833	9,833	131,104

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014
Cash flows from operating activities
Net income	$ 95,478,000	$ 67,729,000
Items not affecting cash
Depreciation and amortization	32,791,000	26,097,000
Stock-based compensation expense	6,021,000	3,369,000
Deferred income taxes	(11,000)	27,789,000
Excess tax benefits from stock-based compensation	(649,000)	(46,000)
Other, including net changes in other non-cash balances
Prepaid taxes	(13,614,000)	(5,819,000)
Other prepaid expenses and other current assets	(5,434,000)	(8,649,000)
Inventories	(74,010,000)	9,418,000
Accounts payable	(1,809,000)	(5,709,000)
Accrued inventory liabilities	13,666,000	5,050,000
Other accrued liabilities	2,828,000	4,886,000
Income taxes payable	(18,463,000)	(207,000)
Accrued compensation and related expenses	3,394,000	7,013,000
Other non-cash balances	(8,027,000)	(6,936,000)
Net cash provided by operating activities	32,161,000	123,985,000
Cash flows from investing activities
Purchase of property and equipment	(65,118,000)	(52,102,000)
Net cash used in investing activities	(65,118,000)	(52,102,000)
Cash flows from financing activities
Proceeds from settlement of stock-based compensation	4,121,000	2,251,000
Excess tax benefits from stock-based compensation	649,000	46,000
Taxes paid related to net share settlement of equity awards	(1,464,000)	(3,660,000)
Repurchase of common stock	(81,998,000)	(55,804,000)
Registration fees associated with prospectus supplement	(145,000)	0
Net cash used in financing activities	(78,837,000)	(57,167,000)
Effect of exchange rate changes on cash and cash equivalents	(11,423,000)	11,708,000
(Decrease) increase in cash and cash equivalents	(123,217,000)	26,424,000
Cash and cash equivalents, beginning of period	664,479,000	698,649,000
Cash and cash equivalents, end of period	$ 541,262,000	$ 725,073,000

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	6 Months Ended
	Aug. 02, 2015
Accounting Policies [Abstract]
Nature of Operations and Basis of Presentation	NATURE OF OPERATIONS AND BASIS OF PRESENTATION Nature of operations lululemon athletica inc., a Delaware corporation ("lululemon" and, together with its subsidiaries unless the context otherwise requires, the "Company") is engaged in the design, distribution, and retail of healthy lifestyle inspired athletic apparel, which is sold through a chain of company-operated stores, direct to consumer through e-commerce, showrooms, a network of wholesale accounts, outlets and warehouse sales. The Company operates stores in the United States, Canada, Australia, New Zealand, the United Kingdom, Singapore, and Hong Kong. There were a total of 336 and 302 company-operated stores in operation as of August 2, 2015 and February 1, 2015 , respectively. Basis of presentation The unaudited interim consolidated financial statements as of August 2, 2015 and for the thirteen and twenty-six weeks ended August 2, 2015 and August 3, 2014 are presented in United States dollars and have been prepared by the Company under the rules and regulations of the Securities and Exchange Commission ("SEC"). The financial information is presented in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and, accordingly, does not include all of the information and footnotes required by GAAP for complete financial statements. The financial information as of February 1, 2015 is derived from the Company's audited consolidated financial statements and notes for the fiscal year ended February 1, 2015 , included in Item 8 in the Company's fiscal 2014 Annual Report on Form 10-K filed with the SEC on March 26, 2015 . These unaudited interim consolidated financial statements reflect all adjustments which are in the opinion of management necessary to a fair statement of the results for the interim periods presented. These unaudited interim consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and related notes included in the Company's fiscal 2014 Annual Report on Form 10-K. The Company's fiscal year ends on the Sunday closest to January 31 of the following year, typically resulting in a 52 week year, but occasionally giving rise to an additional week, resulting in a 53 week year. Fiscal 2015 will end on January 31, 2016 and will be a 52 week year. The Company's business is affected by the pattern of seasonality common to most retail apparel businesses. Historically, the Company has recognized a significant portion of its operating profit in the fourth fiscal quarter of each year as a result of increased sales during the holiday season. Certain comparative figures have been reclassified to conform to the financial presentation adopted for the current year.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Aug. 02, 2015
Accounting Policies [Abstract]
Recent Accounting Pronouncements	RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"), which supersedes the revenue recognition requirements in ASC Topic 605 Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. This guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, and expands the related disclosure requirements. In July 2015, the FASB voted to defer the effective date for public companies to years, and interim periods within those years, beginning after December 15, 2017, with early application permitted only as of years, and interim periods within those years, beginning after December 15, 2016. This guidance will be effective for the Company beginning in its first quarter of fiscal 2018. The Company is currently evaluating the timing of adoption and impact that this new guidance may have on its consolidated financial statements. In June 2014, the FASB amended ASC Topic 718, Compensation - Stock Compensation ("ASC 718") for share-based payments in which the terms of the award provide that a performance target can be achieved after the requisite service period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This guidance is effective for public companies for years, and interim periods within those years, beginning on or after December 15, 2015, and early application is permitted. This guidance will be effective for the Company beginning in its first quarter of fiscal 2016. The Company is currently evaluating the impact that this new guidance may have on its consolidated financial statements. In April 2015, the FASB amended ASC Subtopic 350-40, Intangibles - Goodwill and Other - Internal-Use Software ("ASC 350-40") to provide guidance to customers about whether a cloud computing arrangement includes a software license. This guidance requires that if a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This guidance is effective for public companies for years, and interim periods within those years, beginning on or after December 15, 2015, and early application is permitted. This guidance will be effective for the Company beginning in its first quarter of fiscal 2016. The Company is currently evaluating the impact that this new guidance may have on its consolidated financial statements. In July 2015, the FASB amended ASC Topic 330, Inventory ("ASC 330") to simplify the measurement of inventory. The amendments require that an entity measure inventory at the lower of cost and net realizable value instead of the lower of cost and market. This guidance is effective for public companies for years, and interim periods within those years, beginning on or after December 15, 2016, with earlier application permitted as of the beginning of an interim or annual reporting period. This guidance will be effective for the Company beginning in its first quarter of fiscal 2017. The Company is currently evaluating the impact that this new guidance may have on its consolidated financial statements.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Aug. 02, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	STOCK-BASED COMPENSATION Stock-based compensation plans The Company's eligible employees participate in various stock-based compensation plans, which are provided by the Company directly. Stock-based compensation expense charged to income for the plans was $6,021 and $3,369 for the twenty-six weeks ended August 2, 2015 and August 3, 2014 , respectively. Total unrecognized compensation cost for all stock-based compensation plans was $37,169 at August 2, 2015 , which is expected to be recognized over a weighted-average period of 2.5 years. Company stock options, performance-based restricted stock units, restricted shares and restricted stock units A summary of the Company's stock option, performance-based restricted stock unit, restricted share and restricted stock unit activity as of August 2, 2015 and changes during the twenty-six week period then ended is presented below: Stock Options Performance-Based Restricted Stock Units Restricted Shares Restricted Stock Units Number Weighted-Average Exercise Price Number Weighted-Average Grant Date Fair Value Number Weighted-Average Grant Date Fair Value Number Weighted-Average Grant Date Fair Value Balance at February 1, 2015 879 $ 39.25 452 $ 59.27 62 $ 42.86 186 $ 45.75 Granted 154 64.85 138 64.87 19 66.07 181 64.89 Exercised/vested 219 18.85 46 66.55 30 39.08 5 49.95 Forfeited 111 54.75 121 63.93 4 38.25 34 49.17 Balance at August 2, 2015 703 $ 48.74 423 $ 58.97 47 $ 54.97 328 $ 55.89 Exercisable at August 2, 2015 210 $ 35.47 The fair value of each stock option granted is estimated on date of grant using the Black-Scholes model. The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market conditions and the Company's historical experience. The expected term of the options is based upon historical experience of similar awards, giving consideration for expectations of future employee behavior. Expected volatility is based upon the historical volatility of the Company's common stock for the period corresponding with the expected term of the options. The risk-free interest rate is based on the U.S. Treasury yield curve for the period corresponding with the expected term of the options. The following assumptions were used in calculating the fair value of stock options granted in fiscal 2015 : Stock Options Granted During Fiscal 2015 Expected term 4.0 years Expected volatility 42.73 % Risk-free interest rate 0.98 % Dividend yield — % The Company's performance-based restricted stock units are awarded to eligible employees and entitle the grantee to receive a maximum of two shares of common stock per performance-based restricted stock unit if the Company achieves specified performance goals and the grantee remains employed during the vesting period. The fair value of performance-based restricted stock units is based on the closing price of the Company's common stock on the award date. Expense for performance-based restricted stock units is recognized when it is probable that the performance goal will be achieved. The fair value of the restricted shares and restricted stock units is based on the closing price of the Company's common stock on the award date. Employee stock purchase plan The Company's board of directors and stockholders approved the Company's Employee Share Purchase Plan ("ESPP") in September 2007. Contributions are made by eligible employees, subject to certain limits as defined in the ESPP, and the Company matches one-third of the contribution. The maximum number of shares available under the ESPP is 6,000 shares. During the thirteen weeks ended August 2, 2015 , there were 29 shares purchased under the ESPP in the open market.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Aug. 02, 2015
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE The details of the computation of basic and diluted earnings per share are as follows: Thirteen Weeks Ended Thirteen Weeks Ended Twenty-Six Weeks Ended Twenty-Six Weeks Ended Net income $ 47,668 $ 48,748 $ 95,478 $ 67,729 Basic weighted-average number of shares outstanding 141,372 145,180 141,656 145,282 Assumed conversion of dilutive stock options and awards 272 364 321 433 Diluted weighted-average number of shares outstanding 141,644 145,544 141,977 145,715 Basic earnings per share $ 0.34 $ 0.34 $ 0.67 $ 0.47 Diluted earnings per share $ 0.34 $ 0.33 $ 0.67 $ 0.46 The Company's calculation of weighted-average shares includes the common stock of the Company as well as the exchangeable shares. Exchangeable shares are the equivalent of common shares in all material respects. All classes of stock have in effect the same rights and share equally in undistributed net income. For the twenty-six weeks ended August 2, 2015 and August 3, 2014 , 60 and 288 stock options and awards, respectively, were anti-dilutive to earnings per share and therefore have been excluded from the computation of diluted earnings per share. On June 11, 2014, the Company's board of directors approved a program to repurchase shares of the Company's common stock up to an aggregate value of $450,000 . The common stock is to be repurchased in the open market at prevailing market prices, with the timing and actual number of shares to be repurchased depending upon market conditions and other factors. The repurchases may be made up until June 2016. During the twenty-six weeks ended August 2, 2015 and August 3, 2014 , 1,270 and 1,422 shares, respectively, were repurchased under the program at a total cost of $81,998 and $55,804 , respectively. Subsequent to August 2, 2015 , and up to September 4, 2015 , 402 shares were repurchased at a total cost of $25,324 .

Supplementary Financial Informa

Supplementary Financial Information	6 Months Ended
	Aug. 02, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Supplementary Financial Information	SUPPLEMENTARY FINANCIAL INFORMATION A summary of certain balance sheet accounts is as follows: August 2, February 1, Inventories: Finished goods $ 287,357 $ 214,113 Provision to reduce inventory to market value (6,750 ) (5,997 ) $ 280,607 $ 208,116 Prepaid expenses and other current assets: Prepaid taxes $ 54,811 $ 40,547 Prepaid expenses 29,380 24,124 $ 84,191 $ 64,671 Property and equipment: Land $ 59,226 $ 60,548 Buildings 29,263 29,099 Leasehold improvements 205,235 176,677 Furniture and fixtures 62,287 55,320 Computer hardware 40,776 35,457 Computer software 100,780 84,854 Equipment and vehicles 11,957 11,908 Accumulated depreciation (185,431 ) (157,855 ) $ 324,093 $ 296,008 Goodwill and intangible assets: Goodwill $ 25,496 $ 25,496 Changes in foreign currency exchange rates (1,236 ) (1,083 ) 24,260 24,413 Intangibles—reacquired franchise rights 10,150 10,150 Accumulated amortization (8,674 ) (8,264 ) Changes in foreign currency exchange rates (125 ) (136 ) 1,351 1,750 $ 25,611 $ 26,163 Other accrued liabilities: Sales tax collected $ 9,968 $ 8,579 Accrued rent 4,943 5,567 Other 19,727 17,843 $ 34,638 $ 31,989 Other non-current liabilities: Deferred lease liability $ 22,333 $ 20,837 Tenant inducements 24,767 22,294 $ 47,100 $ 43,131

Legal Proceedings

Legal Proceedings	6 Months Ended
	Aug. 02, 2015
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings	LEGAL PROCEEDINGS In addition to the legal matters described below, the Company is, from time to time, involved in routine legal matters incidental to the conduct of its business, including legal matters such as initiation and defense of proceedings to protect intellectual property rights, personal injury claims, product liability claims, and similar matters. The Company believes the ultimate resolution of any such current proceeding will not have a material adverse effect on its continued financial position, results of operations or cash flows. On July 2, 2013, plaintiff Houssam Alkhoury filed a putative shareholder class action entitled Alkhoury v. lululemon athletica inc., et al. , No. 13-CV-4596 (S.D.N.Y.) against lululemon, a certain director and a certain officer of the Company. This proceeding is discussed in the Company's Annual Report on Form 10-K filed with the SEC on March 26, 2015, and in its Quarterly Report on Form 10-Q filed with the SEC on June 9, 2015. On April 18, 2014, the Court dismissed all of Lead Plaintiff's claims for failure to state a claim. Lead Plaintiff appealed this decision and on May 15, 2015, the Court of Appeals dismissed the plaintiff's appeal. On July 15, 2015, plaintiffs Hallandale Beach Police Officers and Firefighters' Personnel Retirement Fund and Laborers' District Council Industry Pension Fund filed in the Delaware Court of Chancery a derivative lawsuit on behalf of lululemon against certain current and former directors of lululemon, captioned Laborers' District Council Industry Pension Fund v. Bensoussan, et al. , C.A. No. 11293-CB. Plaintiffs claim that the individual defendants breached their fiduciary duties to lululemon by allegedly failing to investigate certain trades of lululemon stock owned by Dennis J. Wilson in 2013. Plaintiffs also claim that Mr. Wilson breached his fiduciary duties by making his broker aware of certain non-public, material events prior to executing sales of lululemon stock on Mr. Wilson's behalf. On August 18, 2015, the individual defendants (including Mr. Wilson) filed motions to dismiss the action pursuant to Court of Chancery Rules 23.1 and 12(b)(6) for failure to adequately plead that demand on the board was excused and for failure to state a claim upon which relief may be granted. Also on August 18, 2015, the Company filed a motion to dismiss the action pursuant to Court of Chancery Rule 23.1 for failure to adequately plead that demand on the board was excused.

Segment Reporting

Segment Reporting	6 Months Ended
	Aug. 02, 2015
Segment Reporting [Abstract]
Segment Reporting	SEGMENT REPORTING The Company applies ASC Topic 280, Segment Reporting ("ASC 280"), in determining reportable segments for its financial statement disclosure. The Company reports segments based on the financial information it uses in managing its business. The Company's reportable segments are comprised of company-operated stores and direct to consumer. Direct to consumer represents sales from the Company's e-commerce websites. Outlet sales, showroom sales, sales to wholesale accounts, warehouse sales, and sales from temporary locations have been combined into other. Information for these segments is detailed in the table below: Thirteen Weeks Ended Thirteen Weeks Ended Twenty-Six Weeks Ended Twenty-Six Weeks Ended Net revenue: Company-operated stores $ 339,779 $ 294,040 $ 653,873 $ 582,142 Direct to consumer 82,239 63,481 165,875 129,455 Other 30,992 33,187 56,806 63,729 $ 453,010 $ 390,708 $ 876,554 $ 775,326 Income from operations before general corporate expense: Company-operated stores $ 67,441 $ 74,891 $ 136,664 $ 150,596 Direct to consumer 32,250 24,087 67,121 51,182 Other 1,820 3,496 2,801 6,786 101,511 102,474 206,586 208,564 General corporate expense 34,932 34,586 71,971 70,875 Income from operations 66,579 67,888 134,615 137,689 Other income, net 842 1,890 1,371 3,533 Income before provision for income taxes $ 67,421 $ 69,778 $ 135,986 $ 141,222 Capital expenditures: Company-operated stores $ 24,788 $ 15,805 $ 41,632 $ 31,671 Direct to consumer 1,479 3,751 1,932 4,863 Corporate 10,915 7,099 21,554 15,568 $ 37,182 $ 26,655 $ 65,118 $ 52,102 Depreciation and amortization: Company-operated stores $ 11,736 $ 9,027 $ 23,013 $ 17,424 Direct to consumer 1,599 1,255 3,135 2,261 Corporate 3,360 3,354 6,643 6,412 $ 16,695 $ 13,636 $ 32,791 $ 26,097

Nature of Operations and Basi14

Nature of Operations and Basis of Presentation (Policies)	6 Months Ended
	Aug. 02, 2015
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The unaudited interim consolidated financial statements as of August 2, 2015 and for the thirteen and twenty-six weeks ended August 2, 2015 and August 3, 2014 are presented in United States dollars and have been prepared by the Company under the rules and regulations of the Securities and Exchange Commission ("SEC"). The financial information is presented in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and, accordingly, does not include all of the information and footnotes required by GAAP for complete financial statements. The financial information as of February 1, 2015 is derived from the Company's audited consolidated financial statements and notes for the fiscal year ended February 1, 2015 , included in Item 8 in the Company's fiscal 2014 Annual Report on Form 10-K filed with the SEC on March 26, 2015 . These unaudited interim consolidated financial statements reflect all adjustments which are in the opinion of management necessary to a fair statement of the results for the interim periods presented. These unaudited interim consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and related notes included in the Company's fiscal 2014 Annual Report on Form 10-K.
New accounting pronouncements	RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"), which supersedes the revenue recognition requirements in ASC Topic 605 Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. This guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, and expands the related disclosure requirements. In July 2015, the FASB voted to defer the effective date for public companies to years, and interim periods within those years, beginning after December 15, 2017, with early application permitted only as of years, and interim periods within those years, beginning after December 15, 2016. This guidance will be effective for the Company beginning in its first quarter of fiscal 2018. The Company is currently evaluating the timing of adoption and impact that this new guidance may have on its consolidated financial statements. In June 2014, the FASB amended ASC Topic 718, Compensation - Stock Compensation ("ASC 718") for share-based payments in which the terms of the award provide that a performance target can be achieved after the requisite service period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This guidance is effective for public companies for years, and interim periods within those years, beginning on or after December 15, 2015, and early application is permitted. This guidance will be effective for the Company beginning in its first quarter of fiscal 2016. The Company is currently evaluating the impact that this new guidance may have on its consolidated financial statements. In April 2015, the FASB amended ASC Subtopic 350-40, Intangibles - Goodwill and Other - Internal-Use Software ("ASC 350-40") to provide guidance to customers about whether a cloud computing arrangement includes a software license. This guidance requires that if a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This guidance is effective for public companies for years, and interim periods within those years, beginning on or after December 15, 2015, and early application is permitted. This guidance will be effective for the Company beginning in its first quarter of fiscal 2016. The Company is currently evaluating the impact that this new guidance may have on its consolidated financial statements. In July 2015, the FASB amended ASC Topic 330, Inventory ("ASC 330") to simplify the measurement of inventory. The amendments require that an entity measure inventory at the lower of cost and net realizable value instead of the lower of cost and market. This guidance is effective for public companies for years, and interim periods within those years, beginning on or after December 15, 2016, with earlier application permitted as of the beginning of an interim or annual reporting period. This guidance will be effective for the Company beginning in its first quarter of fiscal 2017. The Company is currently evaluating the impact that this new guidance may have on its consolidated financial statements.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Aug. 02, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Company's Stock Option, Performance Share Unit and Restricted Share Activity	A summary of the Company's stock option, performance-based restricted stock unit, restricted share and restricted stock unit activity as of August 2, 2015 and changes during the twenty-six week period then ended is presented below: Stock Options Performance-Based Restricted Stock Units Restricted Shares Restricted Stock Units Number Weighted-Average Exercise Price Number Weighted-Average Grant Date Fair Value Number Weighted-Average Grant Date Fair Value Number Weighted-Average Grant Date Fair Value Balance at February 1, 2015 879 $ 39.25 452 $ 59.27 62 $ 42.86 186 $ 45.75 Granted 154 64.85 138 64.87 19 66.07 181 64.89 Exercised/vested 219 18.85 46 66.55 30 39.08 5 49.95 Forfeited 111 54.75 121 63.93 4 38.25 34 49.17 Balance at August 2, 2015 703 $ 48.74 423 $ 58.97 47 $ 54.97 328 $ 55.89 Exercisable at August 2, 2015 210 $ 35.47
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The following assumptions were used in calculating the fair value of stock options granted in fiscal 2015 : Stock Options Granted During Fiscal 2015 Expected term 4.0 years Expected volatility 42.73 % Risk-free interest rate 0.98 % Dividend yield — %

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Aug. 02, 2015
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earning Per Share	The details of the computation of basic and diluted earnings per share are as follows: Thirteen Weeks Ended Thirteen Weeks Ended Twenty-Six Weeks Ended Twenty-Six Weeks Ended Net income $ 47,668 $ 48,748 $ 95,478 $ 67,729 Basic weighted-average number of shares outstanding 141,372 145,180 141,656 145,282 Assumed conversion of dilutive stock options and awards 272 364 321 433 Diluted weighted-average number of shares outstanding 141,644 145,544 141,977 145,715 Basic earnings per share $ 0.34 $ 0.34 $ 0.67 $ 0.47 Diluted earnings per share $ 0.34 $ 0.33 $ 0.67 $ 0.46

Supplementary Financial Infor17

Supplementary Financial Information (Tables)	6 Months Ended
	Aug. 02, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Certain Balance Sheet Accounts	A summary of certain balance sheet accounts is as follows: August 2, February 1, Inventories: Finished goods $ 287,357 $ 214,113 Provision to reduce inventory to market value (6,750 ) (5,997 ) $ 280,607 $ 208,116 Prepaid expenses and other current assets: Prepaid taxes $ 54,811 $ 40,547 Prepaid expenses 29,380 24,124 $ 84,191 $ 64,671 Property and equipment: Land $ 59,226 $ 60,548 Buildings 29,263 29,099 Leasehold improvements 205,235 176,677 Furniture and fixtures 62,287 55,320 Computer hardware 40,776 35,457 Computer software 100,780 84,854 Equipment and vehicles 11,957 11,908 Accumulated depreciation (185,431 ) (157,855 ) $ 324,093 $ 296,008 Goodwill and intangible assets: Goodwill $ 25,496 $ 25,496 Changes in foreign currency exchange rates (1,236 ) (1,083 ) 24,260 24,413 Intangibles—reacquired franchise rights 10,150 10,150 Accumulated amortization (8,674 ) (8,264 ) Changes in foreign currency exchange rates (125 ) (136 ) 1,351 1,750 $ 25,611 $ 26,163 Other accrued liabilities: Sales tax collected $ 9,968 $ 8,579 Accrued rent 4,943 5,567 Other 19,727 17,843 $ 34,638 $ 31,989 Other non-current liabilities: Deferred lease liability $ 22,333 $ 20,837 Tenant inducements 24,767 22,294 $ 47,100 $ 43,131

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Aug. 02, 2015
Segment Reporting [Abstract]
Segment Reporting	Information for these segments is detailed in the table below: Thirteen Weeks Ended Thirteen Weeks Ended Twenty-Six Weeks Ended Twenty-Six Weeks Ended Net revenue: Company-operated stores $ 339,779 $ 294,040 $ 653,873 $ 582,142 Direct to consumer 82,239 63,481 165,875 129,455 Other 30,992 33,187 56,806 63,729 $ 453,010 $ 390,708 $ 876,554 $ 775,326 Income from operations before general corporate expense: Company-operated stores $ 67,441 $ 74,891 $ 136,664 $ 150,596 Direct to consumer 32,250 24,087 67,121 51,182 Other 1,820 3,496 2,801 6,786 101,511 102,474 206,586 208,564 General corporate expense 34,932 34,586 71,971 70,875 Income from operations 66,579 67,888 134,615 137,689 Other income, net 842 1,890 1,371 3,533 Income before provision for income taxes $ 67,421 $ 69,778 $ 135,986 $ 141,222 Capital expenditures: Company-operated stores $ 24,788 $ 15,805 $ 41,632 $ 31,671 Direct to consumer 1,479 3,751 1,932 4,863 Corporate 10,915 7,099 21,554 15,568 $ 37,182 $ 26,655 $ 65,118 $ 52,102 Depreciation and amortization: Company-operated stores $ 11,736 $ 9,027 $ 23,013 $ 17,424 Direct to consumer 1,599 1,255 3,135 2,261 Corporate 3,360 3,354 6,643 6,412 $ 16,695 $ 13,636 $ 32,791 $ 26,097

Nature of Operations and Basi19

Nature of Operations and Basis of Presentation - Additional Information (Detail) - store	Aug. 02, 2015	Feb. 01, 2015
Accounting Policies [Abstract]
Number of stores	336	302

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) $ in Thousands	3 Months Ended	6 Months Ended
	Aug. 02, 2015USD ($)shares	Aug. 02, 2015USD ($)shares	Aug. 03, 2014USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 6,021	$ 3,369
Total unrecognized compensation cost	$ 37,169	$ 37,169
Expected weighted-average period of compensation cost		2 years 6 months
Common stock per performance share unit	2	2
ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Company match contribution	33.33%
Maximum shares available under ESPP | shares	6,000,000	6,000,000
Shares purchased under ESPP | shares	29,000

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Company's Stock Option, Performance Share Unit and Restricted Share Activity (Detail) - Aug. 02, 2015 - $ / shares shares in Thousands	Total
Stock Options [Member]
Number
Number of Stock Options, Beginning Balance	879
Number of Stock Options, Granted	154
Number of Stock Options, Exercised/vested	219
Number of Stock Options, Forfeited	111
Number of Stock Options, Ending Balance	703
Number of Stock Options, Exercisable	210
Weighted-Average Exercise Price
Weighted-Average Exercise Price, Options, Beginning Balance (in dollars per share)	$ 39.25
Weighted-Average Exercise Price, Options, Granted (in dollars per share)	64.85
Weighted-Average Exercise Price, Options, Exercised/vested (in dollars per share)	18.85
Weighted-Average Exercise Price, Options, Forfeited (in dollars per share)	54.75
Weighted-Average Exercise Price, Options, Ending Balance (in dollars per share)	48.74
Weighted-Average Exercise Price, Options, Exercisable (in dollars per share)	$ 35.47
Performance-Based Restricted Stock Units [Member]
Number of Performance-Based Restricted Stock Units and Restricted Shares
Number of Stock, Beginning Balance	452
Number of Stock, Granted	138
Number of Stock, Exercised/vested	46
Number of Stock, Forfeited	121
Number of Stock, Ending Balance	423
Weighted-Average Grant Date Fair Value
Weighted-Average Grant Date Fair Value, Beginning Balance (in dollars per share)	$ 59.27
Weighted-Average Grant Date Fair Value, Granted (in dollars per share)	64.87
Weighted-Average Grant Date Fair Value, Exercised/vested (in dollars per share)	66.55
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share)	63.93
Weighted-Average Grant Date Fair Value, Ending Balance (in dollars per share)	$ 58.97
Restricted Shares [Member]
Number of Performance-Based Restricted Stock Units and Restricted Shares
Number of Stock, Beginning Balance	62
Number of Stock, Granted	19
Number of Stock, Exercised/vested	30
Number of Stock, Forfeited	4
Number of Stock, Ending Balance	47
Weighted-Average Grant Date Fair Value
Weighted-Average Grant Date Fair Value, Beginning Balance (in dollars per share)	$ 42.86
Weighted-Average Grant Date Fair Value, Granted (in dollars per share)	66.07
Weighted-Average Grant Date Fair Value, Exercised/vested (in dollars per share)	39.08
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share)	38.25
Weighted-Average Grant Date Fair Value, Ending Balance (in dollars per share)	$ 54.97
Restricted Stock Units [Member]
Number of Performance-Based Restricted Stock Units and Restricted Shares
Number of Stock, Beginning Balance	186
Number of Stock, Granted	181
Number of Stock, Exercised/vested	5
Number of Stock, Forfeited	34
Number of Stock, Ending Balance	328
Weighted-Average Grant Date Fair Value
Weighted-Average Grant Date Fair Value, Beginning Balance (in dollars per share)	$ 45.75
Weighted-Average Grant Date Fair Value, Granted (in dollars per share)	64.89
Weighted-Average Grant Date Fair Value, Exercised/vested (in dollars per share)	49.95
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share)	49.17
Weighted-Average Grant Date Fair Value, Ending Balance (in dollars per share)	$ 55.89

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value Assumptions (Details) - 6 months ended Aug. 02, 2015	Total
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected term	4 years
Expected volatility	42.73%
Risk-free interest rate	0.98%
Dividend yield	0.00%

Earnings Per Share - Computatio

Earnings Per Share - Computation of Basic and Diluted Earning Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014
Earnings Per Share [Abstract]
Net income	$ 47,668	$ 48,748	$ 95,478	$ 67,729
Basic weighted-average number of shares outstanding (in shares)	141,372	145,180	141,656	145,282
Assumed conversion of dilutive stock options and awards (in shares)	272	364	321	433
Diluted weighted-average number of shares outstanding (in shares)	141,644	145,544	141,977	145,715
Basic earnings per share (in dollars per share)	$ 0.34	$ 0.34	$ 0.67	$ 0.47
Diluted earnings per share (in dollars per share)	$ 0.34	$ 0.33	$ 0.67	$ 0.46

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - USD ($) shares in Thousands	1 Months Ended	6 Months Ended
	Sep. 04, 2015	Aug. 02, 2015	Aug. 03, 2014	Jun. 11, 2014
Earnings Per Share [Abstract]
Anti-dilutive stock options (in shares)		60	288
Aggregate amount authorized for stock repurchase				$ 450,000,000
Equity, Class of Treasury Stock [Line Items]
Repurchase of common stock (in shares)		1,270	1,422
Repurchase of common stock		$ 81,998,000	$ 55,804,000
Subsequent Event [Member]
Equity, Class of Treasury Stock [Line Items]
Repurchase of common stock (in shares)	402
Repurchase of common stock	$ 25,324,000

Supplementary Financial Infor25

Supplementary Financial Information - Summary of Certain Balance Sheet Accounts (Detail) - USD ($) $ in Thousands	Aug. 02, 2015	Feb. 01, 2015
Inventories:
Finished goods	$ 287,357	$ 214,113
Provision to reduce inventory to market value	(6,750)	(5,997)
Total inventories	280,607	208,116
Prepaid expenses and other current assets:
Prepaid taxes	54,811	40,547
Prepaid expenses	29,380	24,124
Total prepaid expense and other current assets	84,191	64,671
Property and equipment:
Land	59,226	60,548
Buildings	29,263	29,099
Leasehold improvements	205,235	176,677
Furniture and fixtures	62,287	55,320
Computer hardware	40,776	35,457
Computer software	100,780	84,854
Equipment and vehicles	11,957	11,908
Accumulated depreciation	(185,431)	(157,855)
Total property and equipment	324,093	296,008
Goodwill and intangible assets:
Goodwill	25,496	25,496
Changes in foreign currency exchange rates	(1,236)	(1,083)
Goodwill, net	24,260	24,413
Intangibles—reacquired franchise rights	10,150	10,150
Accumulated amortization	(8,674)	(8,264)
Changes in foreign currency exchange rates	(125)	(136)
Total intangible assets	1,351	1,750
Goodwill and intangible assets, net	25,611	26,163
Other accrued liabilities:
Sales tax collected	9,968	8,579
Accrued rent	4,943	5,567
Other	19,727	17,843
Total accrued liabilities	34,638	31,989
Other non-current liabilities:
Deferred lease liability	22,333	20,837
Tenant inducements	24,767	22,294
Other non-current liabilities	$ 47,100	$ 43,131

Segment Reporting - Detailed Se

Segment Reporting - Detailed Segments Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014
Net revenue:
Net revenue	$ 453,010	$ 390,708	$ 876,554	$ 775,326
Income from operations before general corporate expense:
Income from operations before general corporate expense	101,511	102,474	206,586	208,564
General corporate expense	34,932	34,586	71,971	70,875
Income from operations	66,579	67,888	134,615	137,689
Other income, net	842	1,890	1,371	3,533
Income before provision for income taxes	67,421	69,778	135,986	141,222
Capital expenditures:
Capital expenditures	37,182	26,655	65,118	52,102
Depreciation and amortization:
Depreciation and amortization	16,695	13,636	32,791	26,097
Operating Segments [Member] | Company-Operated Stores [Member]
Net revenue:
Net revenue	339,779	294,040	653,873	582,142
Income from operations before general corporate expense:
Income from operations before general corporate expense	67,441	74,891	136,664	150,596
Capital expenditures:
Capital expenditures	24,788	15,805	41,632	31,671
Depreciation and amortization:
Depreciation and amortization	11,736	9,027	23,013	17,424
Operating Segments [Member] | Direct To Consumer [Member]
Net revenue:
Net revenue	82,239	63,481	165,875	129,455
Income from operations before general corporate expense:
Income from operations before general corporate expense	32,250	24,087	67,121	51,182
Capital expenditures:
Capital expenditures	1,479	3,751	1,932	4,863
Depreciation and amortization:
Depreciation and amortization	1,599	1,255	3,135	2,261
Operating Segments [Member] | Other [Member]
Net revenue:
Net revenue	30,992	33,187	56,806	63,729
Income from operations before general corporate expense:
Income from operations before general corporate expense	1,820	3,496	2,801	6,786
Operating Segments [Member] | Corporate [Member]
Capital expenditures:
Capital expenditures	10,915	7,099	21,554	15,568
Depreciation and amortization:
Depreciation and amortization	$ 3,360	$ 3,354	$ 6,643	$ 6,412