Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 28, 2017 | Mar. 23, 2017 | Jul. 29, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 28, 2017 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ULTA | ||
Entity Registrant Name | Ulta Beauty, Inc. | ||
Entity Central Index Key | 1,403,568 | ||
Current Fiscal Year End Date | --01-28 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 62,132,265 | ||
Entity Public Float | $ 10,919,168,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 28, 2017 | Jan. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 385,010 | $ 345,840 |
Short-term investments | 30,000 | 130,000 |
Receivables, net | 88,631 | 64,992 |
Merchandise inventories, net | 943,975 | 761,793 |
Prepaid expenses and other current assets | 88,621 | 72,548 |
Total current assets | 1,536,237 | 1,375,173 |
Property and equipment, net | 1,004,358 | 847,600 |
Deferred compensation plan assets | 11,283 | 8,145 |
Total assets | 2,551,878 | 2,230,918 |
Current liabilities: | ||
Accounts payable | 259,518 | 196,174 |
Accrued liabilities | 260,854 | 187,351 |
Accrued income taxes | 8,971 | 12,702 |
Total current liabilities | 529,343 | 396,227 |
Deferred rent | 366,191 | 321,789 |
Deferred income taxes | 86,498 | 59,527 |
Other long-term liabilities | 19,628 | 10,489 |
Total liabilities | 1,001,660 | 788,032 |
Commitments and contingencies (note 4) | ||
Stockholders' equity: | ||
Common stock, $.01 par value, 400,000 shares authorized; 62,733 and 64,131 shares issued; 62,129 and 63,540 shares outstanding; at January 28, 2017, and January 30, 2016, respectively | 627 | 641 |
Treasury stock-common, at cost | (14,524) | (11,685) |
Additional paid-in capital | 658,330 | 621,715 |
Retained earnings | 905,785 | 832,215 |
Total stockholders' equity | 1,550,218 | 1,442,886 |
Total liabilities and stockholders' equity | $ 2,551,878 | $ 2,230,918 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 28, 2017 | Jan. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 62,733,000 | 64,131,000 |
Common stock, shares outstanding | 62,129,000 | 63,540,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May 02, 2015 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 1,580,574 | $ 1,131,232 | $ 1,069,215 | $ 1,073,716 | $ 1,268,295 | $ 910,700 | $ 876,999 | $ 868,122 | $ 4,854,737 | $ 3,924,116 | $ 3,241,369 |
Cost of sales | 1,035,666 | 704,179 | 684,377 | 683,286 | 829,259 | 575,062 | 570,524 | 564,938 | 3,107,508 | 2,539,783 | 2,104,582 |
Gross profit | 544,908 | 427,053 | 384,838 | 390,430 | 439,036 | 335,638 | 306,475 | 303,184 | 1,747,229 | 1,384,333 | 1,136,787 |
Selling, general and administrative expenses | 316,266 | 280,464 | 236,380 | 240,724 | 268,169 | 218,763 | 183,937 | 192,485 | 1,073,834 | 863,354 | 712,006 |
Pre-opening expenses | 4,412 | 6,928 | 4,689 | 2,542 | 1,381 | 6,106 | 4,078 | 3,117 | 18,571 | 14,682 | 14,366 |
Operating income | 224,230 | 139,661 | 143,769 | 147,164 | 169,486 | 110,769 | 118,460 | 107,582 | 654,824 | 506,297 | 410,415 |
Interest income, net | (116) | (211) | (248) | (315) | (273) | (283) | (276) | (311) | (890) | (1,143) | (894) |
Income before income taxes | 224,346 | 139,872 | 144,017 | 147,479 | 169,759 | 111,052 | 118,736 | 107,893 | 655,714 | 507,440 | 411,309 |
Income tax expense | 84,128 | 52,310 | 54,013 | 55,503 | 61,936 | 39,982 | 44,567 | 40,947 | 245,954 | 187,432 | 154,174 |
Net income | $ 140,218 | $ 87,562 | $ 90,004 | $ 91,976 | $ 107,823 | $ 71,070 | $ 74,169 | $ 66,946 | $ 409,760 | $ 320,008 | $ 257,135 |
Net income per common share: | |||||||||||
Basic | $ 2.25 | $ 1.40 | $ 1.44 | $ 1.46 | $ 1.69 | $ 1.11 | $ 1.16 | $ 1.04 | $ 6.55 | $ 5 | $ 4 |
Diluted | $ 2.24 | $ 1.40 | $ 1.43 | $ 1.45 | $ 1.69 | $ 1.11 | $ 1.15 | $ 1.04 | $ 6.52 | $ 4.98 | $ 3.98 |
Weighted average common shares outstanding: | |||||||||||
Basic | 62,519 | 63,949 | 64,335 | ||||||||
Diluted | 62,851 | 64,275 | 64,651 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Operating activities | |||
Net income | $ 409,760 | $ 320,008 | $ 257,135 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 210,295 | 165,049 | 131,764 |
Deferred income taxes | 26,971 | 5,809 | 9,246 |
Non-cash stock compensation charges | 19,340 | 15,594 | 14,923 |
Excess tax benefits from stock-based compensation | (9,053) | (9,497) | (3,229) |
Loss on disposal of property and equipment | 9,140 | 3,690 | 4,468 |
Change in operating assets and liabilities: | |||
Receivables | (23,639) | (12,552) | (5,391) |
Merchandise inventories | (182,182) | (180,564) | (123,296) |
Prepaid expenses and other current assets | (16,073) | (6,000) | (10,555) |
Income taxes | 5,322 | 2,795 | 7,284 |
Accounts payable | 63,344 | 5,396 | 42,496 |
Accrued liabilities | 71,057 | 37,926 | 37,644 |
Deferred rent | 44,402 | 27,662 | 32,497 |
Other assets and liabilities | 6,001 | 558 | 1,606 |
Net cash provided by operating activities | 634,685 | 375,874 | 396,592 |
Investing activities | |||
Purchases of short-term investments | (90,000) | (130,000) | (200,209) |
Proceeds from short-term investments | 190,000 | 150,209 | 50,000 |
Purchases of property and equipment | (373,747) | (299,167) | (249,067) |
Net cash used in investing activities | (273,747) | (278,958) | (399,276) |
Financing activities | |||
Repurchase of common shares | (344,275) | (167,396) | (39,923) |
Stock options exercised | 16,293 | 19,646 | 10,639 |
Excess tax benefits from stock-based compensation | 9,053 | 9,497 | 3,229 |
Purchase of treasury shares | (2,839) | (1,972) | (1,588) |
Net cash used in financing activities | (321,768) | (140,225) | (27,643) |
Net increase (decrease) in cash and cash equivalents | 39,170 | (43,309) | (30,327) |
Cash and cash equivalents at beginning of year | 345,840 | 389,149 | 419,476 |
Cash and cash equivalents at end of year | 385,010 | 345,840 | 389,149 |
Supplemental cash flow information | |||
Cash paid for income taxes (net of refunds) | 212,514 | 179,248 | 137,180 |
Noncash investing activities: | |||
Change in property and equipment included in accrued liabilities | $ 2,446 | $ 13 | $ 8,588 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
Balance at Feb. 01, 2014 | $ 1,003,094 | $ 647 | $ (8,125) | $ 548,194 | $ 462,378 |
Balance, Shares at Feb. 01, 2014 | 64,793 | ||||
Balance, Shares at Feb. 01, 2014 | (562) | ||||
Stock options exercised and other awards | 10,639 | $ 3 | 10,636 | ||
Stock options exercised and other awards, Shares | 290 | ||||
Purchase of treasury shares | (1,588) | $ (1,588) | |||
Purchase of treasury shares, Shares | (16) | ||||
Net income | 257,135 | 257,135 | |||
Excess tax benefits from stock-based compensation | 3,229 | 3,229 | |||
Stock compensation charge | 14,923 | 14,923 | |||
Repurchase of common shares | (39,923) | $ (3) | (39,920) | ||
Repurchase of common shares, Shares | (321) | ||||
Balance at Jan. 31, 2015 | 1,247,509 | $ 647 | $ (9,713) | 576,982 | 679,593 |
Balance, Shares at Jan. 31, 2015 | 64,762 | ||||
Balance, Shares at Jan. 31, 2015 | (578) | ||||
Stock options exercised and other awards | 19,646 | $ 4 | 19,642 | ||
Stock options exercised and other awards, Shares | 403 | ||||
Purchase of treasury shares | (1,972) | $ (1,972) | |||
Purchase of treasury shares, Shares | (13) | ||||
Net income | 320,008 | 320,008 | |||
Excess tax benefits from stock-based compensation | 9,497 | 9,497 | |||
Stock compensation charge | 15,594 | 15,594 | |||
Repurchase of common shares | (167,396) | $ (10) | (167,386) | ||
Repurchase of common shares, Shares | (1,034) | ||||
Balance at Jan. 30, 2016 | $ 1,442,886 | $ 641 | $ (11,685) | 621,715 | 832,215 |
Balance, Shares at Jan. 30, 2016 | 64,131 | 64,131 | |||
Balance, Shares at Jan. 30, 2016 | (591) | ||||
Stock options exercised and other awards | $ 16,293 | $ 2 | 16,291 | ||
Stock options exercised and other awards, Shares | 241 | ||||
Purchase of treasury shares | (2,839) | $ (2,839) | |||
Purchase of treasury shares, Shares | (13) | ||||
Net income | 409,760 | 409,760 | |||
Excess tax benefits from stock-based compensation | 9,053 | 9,053 | |||
Stock compensation charge | 19,340 | 19,340 | |||
Repurchase of common shares | (344,275) | $ (16) | (8,069) | (336,190) | |
Repurchase of common shares, Shares | (1,639) | ||||
Balance at Jan. 28, 2017 | $ 1,550,218 | $ 627 | $ (14,524) | $ 658,330 | $ 905,785 |
Balance, Shares at Jan. 28, 2017 | 62,733 | 62,733 | |||
Balance, Shares at Jan. 28, 2017 | (604) |
Business and basis of presentat
Business and basis of presentation | 12 Months Ended |
Jan. 28, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and basis of presentation | 1. Business and basis of presentation On January 29, 2017, Ulta Salon, Cosmetics & Fragrance, Inc. implemented a holding company reorganization. Pursuant to which Ulta Beauty, Inc., which was incorporated as a Delaware corporation in December 2016, became the successor to Ulta Salon, Cosmetics & Fragrance, Inc., the former publicly-traded company and now a wholly owned subsidiary of Ulta Beauty. As used in these notes and throughout this Annual Report on Form 10-K, all references to “we,” “us,” “Ulta Beauty” or the “Company” refer to Ulta Beauty, Inc. and its consolidated subsidiaries. The Company was originally founded in 1990 to operate specialty retail stores selling cosmetics, fragrance, haircare and skincare products, and related accessories and services. The stores also feature full-service salons. As of January 28, 2017, the Company operated 974 stores in 48 states and the District of Columbia. All amounts are stated in thousands, with the exception of per share amounts and number of stores. The Company has determined its operating segments on the same basis that it uses to internally evaluate performance. The Company has combined its three operating segments, retail stores, salon services and e-commerce, into one reportable segment because they have a similar class of consumer, economic characteristics, nature of products and distribution methods. The Company offers a balanced portfolio across five primary categories: (1) cosmetics; (2) skincare, bath and fragrance; (3) haircare products and styling tools; (4) salon services; and (5) other, which includes nail products and accessories. The following table sets forth the approximate percentage of net sales attributed to each category for the periods indicated: Fiscal year ended January 28, January 30, January 31, Cosmetics 51 % 46 % 42 % Skincare, Bath & Fragrance 20 % 23 % 24 % Haircare Products & Styling Tools 20 % 22 % 24 % Salon Services 5 % 5 % 5 % Other 4 % 4 % 5 % 100 % 100 % 100 % |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Jan. 28, 2017 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies Fiscal year The Company’s fiscal year is the 52 or 53 weeks ending on the Saturday closest to January 31. The Company’s fiscal years ended January 28, 2017 (fiscal 2016), January 30, 2016 (fiscal 2015) and January 31, 2015 (fiscal 2014) were 52 week years. Consolidation The Company’s consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts, transactions and unrealized profit were eliminated in consolidation. Use of estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the accounting period. Actual results could differ from those estimates. Cash and cash equivalents Cash and cash equivalents include cash on hand and highly liquid investments with maturities of three months or less from the date of purchase. Cash equivalents include amounts due from third-party credit card receivables because such amounts generally convert to cash within one to three days with little or no default risk. Short-term investments The Company determines the balance sheet classification of its investments at the time of purchase and evaluates the classification at each balance sheet date. Money market funds, certificates of deposit and time deposits with maturities of greater than three months but no more than twelve months are carried at cost, which approximates fair value and are recorded in the Consolidated Balance Sheets in Short-term investments (see Note 9, “Investments”). Receivables Receivables consist principally of amounts receivable from vendors and landlord construction allowances earned but not yet received. These receivables are computed based on provisions of the vendor and lease agreements in place and the Company’s completed performance. The Company’s vendors are producers of consumer products and landlords. The Company does not require collateral on its receivables and does not accrue interest. Credit risk with respect to receivables is limited due to the diversity of vendors and landlords comprising the Company’s vendor base. The Company performs ongoing credit evaluations of its vendors and evaluates the collectability of its receivables based on the length of time the receivable is past due and historical experience. The receivable for vendor allowances was $59,553 and $46,932 as of January 28, 2017 and January 30, 2016, respectively, and the receivable for landlord allowances was $23,186 and $10,250 as of January 28, 2017 and January 30, 2016, respectively. The allowance for doubtful receivables totaled $2,079 and $1,112 as of January 28, 2017 and January 30, 2016, respectively. Merchandise inventories Merchandise inventories are stated at the lower of cost or market. Cost is determined using the weighted-average cost method and includes costs incurred to purchase and distribute goods. Inventory cost also includes vendor allowances related to co-op advertising, markdowns, and volume discounts. The Company maintains reserves for lower of cost or market and shrinkage. Fair value of financial instruments The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximates their estimated fair values due to the short maturities of these instruments. The Company had no outstanding debt as of January 28, 2017 and January 30, 2016. Property and equipment The Company’s property and equipment are stated at cost net of accumulated depreciation and amortization. Maintenance and repairs are charged to operating expense as incurred. The Company’s assets are depreciated or amortized using the straight-line method, over the shorter of their estimated useful lives or the expected lease term as follows: Equipment and fixtures 3 to 10 years Leasehold improvements 10 years Electronic equipment and software 3 to 5 years The Company capitalizes costs incurred during the application development stage in developing or purchasing internal use software. These costs are amortized over the estimated useful life of the software. The Company periodically evaluates whether changes have occurred that would require revision of the remaining useful life of equipment and leasehold improvements or render them not recoverable. If such circumstances arise, the Company uses an estimate of the undiscounted sum of expected future operating cash flows during their holding period to determine whether the long-lived assets are impaired. If the aggregate undiscounted cash flows are less than the carrying amount of the assets, the resulting impairment charges to be recorded are calculated based on the excess of the carrying value of the assets over the fair value of such assets, with the fair value determined based on an estimate of discounted future cash flows. The Company recognized $3,124 of fixed asset impairment charges related to store closures in Chicago, Illinois and Denham Springs, Louisiana in fiscal 2016,which is included in selling, general and administrative (SG&A) expenses in the statements of income. No significant impairment charges were recognized in fiscal 2015 or 2014. Customer loyalty program In early fiscal 2014, we completed the conversion of all our loyalty members to Ultamate Rewards, a points-based program. Ultamate Rewards enables customers to earn points based on their purchases. Points earned by members are valid for at least one year and may be redeemed on any product we sell. Prior to this conversion, we ran both Ultamate Rewards and our prior program, The Club at Ulta. The Club at Ulta was a certificate program offering customers reward certificates for free beauty products based on the level of purchases. The Company accrues the cost of anticipated redemptions related to these programs at the time of the initial purchase based on historical experience. The accrued liability related to these loyalty programs at January 28, 2017 and January 30, 2016 was $30,244 and $20,026 respectively. The cost of these programs, which was $77,145, $54,464 and $42,096 in fiscal 2016, 2015 and 2014, respectively, is included in cost of sales in the statements of income. Credit Cards During 2016, the Company entered into certain agreements (the Agreements) with third parties to provide our guests with private label and/or co-branded credit cards (collectively, the Credit Cards). The private label credit card can be used at any of our store locations and online and the co-branded credit card can be used anywhere the co-branded card is accepted. A third-party financing company is the sole owner of the accounts and underwrites the credit issued under the Credit Card programs. The Company receives payments and reimbursements of expenses in accordance with the Agreements and based on usage of the Credit Cards. We recognize income for such cash receipts when the amounts are fixed or determinable and collectability is reasonably assured, which is generally the time at which the actual usage of the Credit Cards or specified transaction occurs. A majority of the funds received are recorded as a reduction of SG&A expenses, and the remaining portion is recognized as a reduction to cost of sales in our statements of income. Our loyalty members earn points through purchases at Ulta Beauty and anywhere the co-branded card is accepted. Consistent with the current accounting for the customer loyalty program, the Company accrues the cost of anticipated redemptions related to these programs at the time of the initial purchase and costs are included in cost of sales in the statements of income. Other administrative costs related to the Credit Card programs, including payroll, marketing expenses, and other direct costs, are included in SG&A in the statements of income. Deferred rent Many of the Company’s operating leases contain predetermined fixed increases of the minimum rental rate during the lease. For these leases, the Company recognizes the related rental expense on a straight-line basis over the expected lease term and records the difference between the amounts charged to expense and the rent paid as deferred rent. The lease term commences on the earlier of the date when the Company becomes legally obligated for rent payments or the date the Company takes possession of the leased space. As part of many lease agreements, the Company receives construction allowances from landlords for tenant improvements. These leasehold improvements made by the Company are capitalized and amortized over the shorter of the lease term or 10 years. The construction allowances are recorded as deferred rent and amortized on a straight-line basis over the lease term as a reduction of rent expense. Revenue recognition Net sales include merchandise sales, salon service revenue and e-commerce revenue. Revenue from merchandise sales at stores is recognized at the time of sale, net of estimated returns. The Company provides refunds for product returns within 60 days from the original purchase date. Salon revenue is recognized when services are rendered. Salon service revenue amounted to $241,105, $209,249 and $175,533 for fiscal 2016, 2015 and 2014, respectively. Company coupons and other incentives are recorded as a reduction of net sales. State sales taxes are presented on a net basis as the Company considers itself a pass-through conduit for collecting and remitting state sales tax. E-commerce sales are recorded based on delivery of merchandise to the customer. E-commerce revenue amounted to $345,342, $221,077 and $149,857 for fiscal 2016, 2015 and 2014, respectively. The Company’s gift card sales are deferred and recognized in net sales when the gift card is redeemed for product or services. The Company’s gift cards do not expire and do not include service fees that decrease customer balances. The Company has maintained Company-specific, historical data related to its large pool of similar gift card transactions sold and redeemed over a significant time frame. The Company recognizes gift card breakage to the extent there is no requirement for remitting balances to governmental agencies under unclaimed property laws. Gift card breakage is recognized over the same performance period, and in the same proportion, that the Company’s data has demonstrated that gift cards are redeemed. Gift card breakage was $5,335 and $3,728 at January 28, 2017 and January 30, 2016, respectively, and is recorded as a decrease in SG&A expense in the statements of income. Deferred gift card revenue was $46,268 and $31,830 at January 28, 2017 and January 30, 2016, respectively, and is included in accrued liabilities – accrued customer liabilities (see Note 5, “Accrued liabilities”). Vendor allowances The Company receives allowances from vendors in the normal course of business including advertising and markdown allowances, purchase volume discounts and rebates, and reimbursement for defective merchandise, and certain selling and display expenses. Substantially all vendor allowances are recorded as a reduction of the vendor’s product cost and are recognized in cost of sales as the product is sold. Advertising Advertising expense consists principally of paper, print and distribution costs related to the Company’s advertising circulars, as well as television, radio and digital advertising. The Company expenses the production and distribution costs related to its advertising circulars in the period the related promotional event occurs. Total advertising costs, exclusive of incentives from vendors and start-up advertising expense, amounted to $212,714, $187,158 and $157,847 for fiscal 2016, 2015 and 2014, respectively. Advertising expense as a percentage of sales was 4.4%, 4.8% and 4.9% for fiscal 2016, 2015 and 2014, respectively. Prepaid advertising costs included in prepaid expenses and other current assets were $9,901 and $6,413 as of January 28, 2017 and January 30, 2016, respectively. Pre-opening expenses Non-capital expenditures incurred prior to the grand opening of a new, remodeled or relocated store are charged against earnings as incurred. Cost of sales Cost of sales includes the cost of merchandise sold (retail and e-commerce), including a majority of vendor allowances, which are treated as a reduction of merchandise costs; warehousing and distribution costs including labor and related benefits, freight, rent, depreciation and amortization, real estate taxes, utilities, and insurance; shipping and handling costs; store occupancy costs including rent, depreciation and amortization, real estate taxes, utilities, repairs and maintenance, insurance, licenses, and cleaning expenses; salon payroll and benefits; customer loyalty program expense; and shrink and inventory valuation reserves. Selling, general and administrative expenses Selling, general and administrative expenses includes payroll, bonus, and benefit costs for retail and corporate employees; advertising and marketing costs; credit card program incentives; occupancy costs related to our corporate office facilities; public company expense including Sarbanes-Oxley Act of 2002 compliance expenses; stock-based compensation expense; depreciation and amortization for all assets except those related to our retail and warehouse operations, which are included in cost of sales; and legal, finance, information systems and other corporate overhead costs. Income taxes Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities used for financial reporting purposes and the amounts used for income tax purposes. The amounts reported were derived using the enacted tax rates in effect for the year the differences are expected to reverse. Income tax benefits related to uncertain tax positions are recognized only when it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that each uncertain tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information. Penalties and interest related to unrecognized tax positions are recorded in income tax expense. Share-based compensation Share-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized on a straight-line method over the requisite service period for awards expected to vest. The Company recorded stock compensation expense of $19,340, $15,594 and $14,923 for fiscal 2016, 2015 and 2014, respectively (see Note 10, “Share-based awards”). Insurance expense The Company has insurance programs with third party insurers for employee health, workers compensation and general liability, among others, to limit the Company’s liability exposure. The insurance programs are premium based and include retentions, deductibles and stop loss coverage. Current stop loss coverage per claim is $350 for employee health claims, $100 for general liability claims and $250 for workers compensation claims. The Company makes collateral and premium payments during the plan year and accrues expenses in the event additional premium is due from the Company based on actual claim results. Net income per common share Basic net income per common share is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share includes dilutive common stock equivalents, using the treasury stock method (see Note 11, “Net income per common share”). Recent accounting pronouncements not yet adopted Revenue Recognition from Contracts with Customers In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, issued as a new Topic, Accounting Standards Codification Topic 606 (ASU 2014-09). The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that we will recognize revenue when we transfer promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 Revenue from Contracts with Customers (Topic 606), which delayed the effective date of ASU 2014-09 by one year. With the deferral, the revenue recognition standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods with early adoption permitted for annual reporting periods beginning after December 15, 2016, including interim reporting periods. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (ASU 2016-08) which further clarifies how to implement revenue recognition guidance related to determining whether an entity is a principal or an agent in a revenue transaction. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (ASU 2016-10) which further clarifies the aspects of (a) identifying performance obligations and (b) the licensing implementation guidance. The effective date and transition requirements for ASU 2016-08 and ASU 2016-10 are the same as the effective date and transition requirements of ASU 2014-09. These standards allow for either full retrospective or modified retrospective adoption. The Company will adopt the new guidance in fiscal 2018, and anticipates using the modified retrospective method. The Company has formed a project team to review our current accounting policies and practices, assess the effect of the standard on our revenue transactions and identify potential differences. While we will continue to evaluate possible impacts on our consolidated financial statements, ASU 2014-09 is expected to impact the recognition timing or classification of revenues and expenses for our sales refund reserve, gift card breakage and loyalty program accounting, however, the Company does not expect a significant impact to pretax income upon adoption. In addition, we are in the process of evaluating changes to our business processes and controls to support recognition and disclosure under the new standard. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This standard will change the way all leases of one year or more are treated. Under this guidance, lessees will be required to capitalize virtually all leases on the balance sheet as a right-of-use asset and recognize an associated financing lease liability or capital lease liability. The right-of-use asset represents the lessee’s right to use, or control the use of, a specified asset for the specified lease term. The lease liability represents the lessee’s obligation to make lease payments arising from the lease, measured on a discounted basis. Based on certain characteristics, leases are classified as financing leases or operating leases. Financing lease liabilities, those that contain provisions similar to capitalized leases, are amortized like capital leases under current GAAP as amortization expense and interest expense in the statement of operations. Operating lease liabilities are amortized on a straight-line basis over the life of the lease as lease expense in the statement of operations. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018, including interim reporting periods. At January 28, 2017, the Company has made a decision to early adopt the new standard in fiscal 2018. The Company has formed a project team to review our current accounting policies and practices and assess the effect of the standard on our consolidated financial statements. The team has completed a preliminary assessment of the potential impact of adopting ASU 2016-02 on its financial statements. The adoption of this ASU 2016-02 will have a material impact on the Company’s financial position, however the Company does not believe adoption of this standard will have a material impact on the Company’s results of operations or cash flows. Liabilities – Extinguishments of Liabilities In March 2016, the FASB issued ASU 2016-04, Liabilities – Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored – Value Products. This update entitles a company to derecognize amounts related to expected breakage to the extent that it is probable a significant reversal of the recognized breakage amount will not subsequently occur. ASU 2016-04 is effective for annual and interim periods beginning after December 15, 2017, and early adoption is permitted. The adoption of ASU 2016-04 is not expected to have a material impact on the Corporation’s consolidated financial position, results of operations and cash flows. Compensation – Stock Compensation In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This guidance will change how companies account for certain aspects of share-based payments to employees. Companies will have to recognize all income tax effects of awards in the income statement when the awards vest or are settled, and additional paid-in capital pools will be eliminated. The guidance on employer’s accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation and for forfeitures is changing, and two practical expedients for non-public entities have been added. ASU 2016-09 is effective for annual and interim reporting periods beginning after December 15, 2016, and early adoption is permitted. The Company will adopt the new guidance in the first quarter of fiscal 2017. The potential impact that the adoption of ASU 2016-9 will have on the Company’s financial statements during and after the period of adoption are dependent, in part, upon factors that are not fully controllable or predictable by the Company, including future vesting of stock-based awards, market price of the Company’s common stock, timing of employee exercises of vested stock options and achievement of performance criteria that affect the vesting of performance-based awards. However, based on the market price of the Company’s common stock and its outstanding restricted stock units and unexercised stock options as of January 28, 2017, the Company anticipates that the adoption of this pronouncement will result in lower income tax expense in fiscal year 2017 and this anticipated income tax benefit will be reported as a component of cash flows from operating activities. Additionally, the Company will continue to include the impact of estimated forfeitures when determining share-based compensation expense. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). ASU 2016-15 provides classification guidance on certain cash receipts and cash payments, including, but not limited to, debt prepayment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of bank-owned life insurance policies and distributions received from equity method investees. The adoption of ASU 2016-15 requires a retrospective transition method applied to each period presented. ASU 2016-15 is effective for annual periods and interim periods beginning after December 15, 2017, and early adoption is permitted. The adoption of ASU 2016-15 is not expected to have a material impact on the Company’s consolidated financial position, results of operations and cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the Emerging Issues Task Force), which amends ASU Topic 230. ASU 2016-18 requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer be required to present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. Entities will also have to disclose the nature of their restricted cash and restricted cash equivalent balances. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 and interim periods within those years and early adoption is permitted. Entities are required to apply the guidance retrospectively. The adoption of ASU 2016-18 is not expected to have a material impact on the Company’s consolidated financial position, results of operations and cash flows. Recently adopted accounting pronouncements Stock Compensation In June 2014, the FASB issued ASU 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This update clarifies the accounting for share-based awards with performance targets. ASU 2014-12 is effective for public companies for annual reporting periods beginning after December 15, 2015, including interim reporting periods. As permitted, the Company adopted this standard, prospectively, in its first quarter ended April 30, 2016 and its adoption had no impact on its consolidated financial position, results of operations and cash flows. Goodwill and other In April 2015, the FASB issued ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customers’ Accounting for Fees Paid in a Cloud Computing Arrangement. This standard provides guidance to determine whether a cloud-based computing arrangement includes a software license. If a cloud-based computing arrangement includes a software license, the customer must account for the software element of the arrangement consistent with the acquisition of other software licenses. Otherwise, the customer must account for the arrangement as a service contract. As permitted, the Company adopted this standard, prospectively, in its first quarter ended April 30, 2016 and its adoption had no impact on its consolidated financial position, results of operations and cash flows. |
Property and equipment
Property and equipment | 12 Months Ended |
Jan. 28, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | 3. Property and equipment Property and equipment consists of the following: January 28, January 30, (In thousands) 2017 2016 Equipment and fixtures $ 708,754 $ 556,499 Leasehold improvements 607,690 515,712 Electronic equipment and software 437,262 353,940 Construction-in-progress 49,411 75,804 1,803,117 1,501,955 Less: accumulated depreciation and amortization (798,759 ) (654,355 ) Property and equipment, net $ 1,004,358 $ 847,600 The Company did not utilize the credit facility during fiscal 2016 and 2015, and therefore had no capitalized interest for the respective fiscal years. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Jan. 28, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 4. Commitments and contingencies Leases Operating Leases Fiscal year (in thousands) 2017 $ 270,684 2018 274,625 2019 259,875 2020 246,209 2021 228,073 2022 and thereafter 726,575 Total minimum lease payments $ 2,006,041 Included in the operating lease schedule above is $315,230 of minimum lease payments for stores that are expected to open in future periods. Contractual obligations General litigation |
Accrued liabilities
Accrued liabilities | 12 Months Ended |
Jan. 28, 2017 | |
Payables and Accruals [Abstract] | |
Accrued liabilities | 5. Accrued liabilities Accrued liabilities consist of the following: January 28, January 30, (In thousands) 2017 2016 Accrued vendor liabilities (including accrued property and equipment costs) $ 44,804 $ 27,894 Accrued customer liabilities 47,441 54,496 Accrued payroll, bonus and employee benefits 84,555 61,068 Accrued taxes, other 24,883 20,486 Other accrued liabilities 59,171 23,407 Accrued liabilities $ 260,854 $ 187,351 |
Income taxes
Income taxes | 12 Months Ended |
Jan. 28, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 6. Income taxes The provision for income taxes consists of the following: Fiscal Fiscal Fiscal (In thousands) 2016 2015 2014 Current: Federal $ 194,199 $ 163,048 $ 128,159 State 24,835 18,694 16,909 Total current 219,034 181,742 145,068 Deferred: Federal 24,480 6,981 8,392 State 2,440 (1,291 ) 714 Total deferred 26,920 5,690 9,106 Provision for income taxes $ 245,954 $ 187,432 $ 154,174 A reconciliation of the federal statutory rate to the Company’s effective tax rate is as follows: Fiscal Fiscal Fiscal Federal statutory rate 35.0 % 35.0 % 35.0 % State effective rate, net of federal tax benefit 2.8 % 2.2 % 2.8 % Other (0.3 %) (0.3 %) (0.3 %) Effective tax rate 37.5 % 36.9 % 37.5 % Significant components of the Company’s deferred tax assets and liabilities are as follows: January 28, January 30, (In thousands) 2017 2016 Deferred tax assets: Reserves not currently deductible $ 33,805 $ 27,734 Employee benefits 15,206 10,594 Credit carryforwards 398 441 Accrued liabilities 10,539 10,704 Inventory valuation 3,630 257 Total deferred tax assets 63,578 49,730 Deferred tax liabilities: Property and equipment 73,454 48,898 Deferred rent obligation 62,252 49,548 Prepaid expenses 14,370 10,811 Total deferred tax liabilities 150,076 109,257 Net deferred tax liability $ (86,498 ) $ (59,527 ) At January 28, 2017 and January 30, 2016, the Company had $398 and $441, respectively, of credit carryforwards for state income tax purposes. The Company accounts for uncertainty in income taxes in accordance with the ASC rules for income taxes. The reserve for uncertain tax positions was $3,305 and $2,262 at January 28, 2017 and January 30, 2016, respectively. The balance is the Company’s best estimate of the potential liability for uncertain tax positions. A reconciliation of the Company’s unrecognized tax benefits, excluding interest and penalties, is as follows: (In thousands) January 28, January 30, Balance at beginning of the period $ 2,262 $ 1,414 Increase due to a current year position 1,048 900 Decrease due to a prior period position (5 ) (52 ) Balance at the end of the period $ 3,305 $ 2,262 The Company acknowledges that the amount of unrecognized tax benefits may change in the next twelve months. However, it does not expect the change to have a significant impact on its consolidated financial statements. Income tax-related interest and penalties were insignificant for fiscal 2016 and 2015. The Company files tax returns in the U.S. Federal and State jurisdictions. The Company is no longer subject to U.S. Federal examinations by the Internal Revenue Services for years before 2013 and is no longer subject to examinations by State authorities before 2012. |
Notes payable
Notes payable | 12 Months Ended |
Jan. 28, 2017 | |
Debt Disclosure [Abstract] | |
Notes payable | 7. Notes payable In 2011, the Company entered into an Amended and Restated Loan and Security Agreement with Wells Fargo Bank, National Association, as Administrative Agent, Collateral Agent and a Lender thereunder, Wells Fargo Capital Finance LLC as a Lender, J.P. Morgan Securities LLC as a Lender, JP Morgan Chase Bank, N.A. as a Lender and PNC Bank, National Association, as a Lender, which has been amended multiple times since 2011 (as amended, the Loan Agreement). The Loan Agreement currently matures in December 2018, provides maximum revolving loans equal to the lesser of $200,000 or a percentage of eligible owned inventory, contains a $10,000 subfacility for letters of credit and allows the Company to increase the revolving facility by an additional $50,000, subject to consent by each lender and other conditions. The Loan Agreement contains a requirement to maintain a minimum amount of excess borrowing availability at all times. Substantially all of the Company’s assets are pledged as collateral for outstanding borrowings under the facility. Outstanding borrowings will bear interest at the prime rate or London Interbank Offered Rate plus 1.50% and the unused line fee is 0.20%. As of January 28, 2017 and January 30, 2016, the Company had no borrowings outstanding under the credit facility and the Company was in compliance with all terms and covenants of the agreement. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Jan. 28, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | 8. Fair value measurements The carrying value of cash and cash equivalents, accounts receivable, and accounts payable approximates their estimated fair values due to the short maturities of these instruments. Fair value is measured using inputs from the three levels of the fair value hierarchy, which are described as follows: • Level 1 – observable inputs such as quoted prices for identical instruments in active markets. • Level 2 – inputs other than quoted prices in active markets that are observable either directly or indirectly through corroboration with observable market data. • Level 3 – unobservable inputs in which there is little or no market data, which would require the Company to develop its own assumptions. As of January 28, 2017 and January 30, 2016, the Company held financial liabilities of $10,474 and $7,491, respectively, related to its non-qualified deferred compensation plan. The liabilities have been categorized as Level 2 as they are based on third-party reported values which are based primarily on quoted market prices of underlying assets of the funds within the plan. |
Investments
Investments | 12 Months Ended |
Jan. 28, 2017 | |
Investments Schedule [Abstract] | |
Investments | 9. Investments The Company’s short-term investments as of January 28, 2017 and January 30, 2016, consist of $30,000 and $130,000, respectively, in certificates of deposit. These short-term investments are carried at cost, which approximates fair value and are recorded in the Consolidated Balance Sheets in Short-term investments. The contractual maturity of the Company’s investments was less than twelve months at January 28, 2017. |
Share-based awards
Share-based awards | 12 Months Ended |
Jan. 28, 2017 | |
Equity [Abstract] | |
Share-based awards | 10. Share-based awards Equity incentive plans The Company has had a number of equity incentive plans over the years. The plans were adopted in order to attract and retain the best available personnel for positions of substantial authority and to provide additional incentive to employees, directors, and consultants to promote the success of the Company’s business. Incentive compensation was awarded under the Amended and Restated Restricted Stock Option Plan until April 2002 and under the 2002 Equity Incentive Plan through July 2007, at which time the 2007 Incentive Award Plan was adopted. All of the plans generally provided for the grant of incentive stock options, non-qualified stock options, restricted stock, restricted stock units, stock appreciation rights, and other types of awards to employees, consultants and directors. Unless provided otherwise by the administrator of the plan, options vested over four years at the rate of 25% per year from the date of grant and most must be exercised within ten years. Options were granted with the exercise price equal to the fair value of the underlying stock on the date of grant. Amended and Restated 2011 Incentive award plan In June 2016, the Company adopted the Amended and Restated 2011 Incentive Award Plan (the 2011 Plan). The 2011 Plan provides for the grant of incentive stock options, non-qualified stock options, restricted stock, restricted stock units, stock appreciation rights, performance awards, dividend equivalent rights, stock payments, deferred stock and cash-based awards to employees, consultants, and directors. Following its original adoption in June 2011, awards are only being made under the 2011 Plan, and no further awards will be made under any prior plan. As of January 28, 2017, the 2011 Plan reserves for the issuance upon grant or exercise of awards up to 3,912 shares of the Company’s common stock. The Company recorded stock compensation expense of $19,340, $15,594 and $14,923 for fiscal 2016, 2015 and 2014, respectively. Cash received from option exercises under all share-based payment arrangements for fiscal 2016, 2015 and 2014 was $16,293, $19,646 and $10,639, respectively. The total income tax benefit recognized in the income statement for equity compensation arrangements was $6,764, $5,354 and $3,526 for fiscal 2016, 2015 and 2014, respectively. The actual tax benefit realized for the tax deductions from option exercise and restricted stock vesting of the share-based payment arrangements totaled $15,868, $14,970 and $6,892, respectively, for fiscal 2016, 2015 and 2014. Employee stock options The Company measures share-based compensation cost on the grant date, based on the fair value of the award, and recognizes the expense on a straight-line method over the requisite service period for awards expected to vest. The Company estimated the grant date fair value of stock options using a Black-Scholes valuation model using the following weighted-average assumptions: Fiscal Fiscal Fiscal Volatility rate 35.0% 37.9% 40.7% Average risk-free interest rate 1.2% 1.6% 1.4% Average expected life (in years) 3.5 4.9 3.8 Dividend yield None None None The expected volatility is based on the historical volatility of the Company’s common stock. The risk free interest rate is based on the United States Treasury yield curve in effect on the date of grant for the respective expected life of the option. The expected life represents the time the options granted are expected to be outstanding. The expected life of options granted is derived from historical data on Ulta Beauty stock option exercises. Forfeitures of options are estimated at the grant date based on historical rates of the Company’s stock option activity and reduce the compensation expense recognized. The Company does not currently pay a regular dividend. The Company granted 110 stock options during fiscal 2016. The compensation cost that has been charged against income for stock option grants was $7,983, $7,899, and $9,078 for fiscal 2016, 2015, and 2014, respectively. The weighted-average grant date fair value of options granted in fiscal 2016, 2015 and 2014 was $53.02, $56.44 and $32.38, respectively. The total fair value of stock options issued that vested during fiscal 2016, 2015 and 2014 was $5,932, $8,236 and $8,799, respectively. At January 28, 2017, there was approximately $19,938 of unrecognized compensation expense related to unvested stock options. The unrecognized compensation expense is expected to be recognized over a weighted-average period of approximately three years. The total intrinsic value of options exercised was $27,468, $36,610 and $15,032 in fiscal 2016, 2015 and 2014, respectively. A summary of the status of the Company’s stock option activity is presented in the following table (shares in thousands): Fiscal 2016 Fiscal 2015 Fiscal 2014 Number of Weighted- Number of Weighted- Number of Weighted- Common stock options outstanding Beginning of year 939 $ 104.58 1,073 $ 72.12 1,090 $ 56.94 Granted 110 193.64 294 160.01 371 99.40 Exercised (194 ) 83.88 (356 ) 55.20 (238 ) 44.79 Forfeited (25 ) 118.97 (72 ) 91.74 (150 ) 72.57 End of year 830 $ 120.78 939 $ 104.58 1,073 $ 72.12 Exercisable at end of year 280 $ 69.69 316 $ 61.44 440 $ 43.98 Vested and Expected to vest 786 $ 119.32 890 $ 103.36 1,028 $ 71.28 The following table presents information related to options outstanding and options exercisable at January 28, 2017, under the Company’s stock option plans based on ranges of exercise prices (shares in thousands): Options outstanding Options exercisable Range of Exercise Prices Number of Weighted- Weighted- Number of Weighted- Weighted- $9.67 - $57.42 112 3 $ 25.13 112 3 $ 25.13 $69.96 - $96.81 119 6 82.19 81 6 80.65 $97.89 - $99.66 153 7 98.12 36 7 98.08 $101.35 - $153.87 134 8 136.78 50 8 129.41 $164.06 - $165.27 206 9 164.09 1 9 165.01 $191.76 - $249.64 106 9 193.70 — — — $9.67 - $249.64 830 7 $ 120.78 280 5 $ 69.69 The aggregate intrinsic value of outstanding and exercisable options as of January 28, 2017 was $125,061 and $56,533, respectively. The last reported sale price of our common stock on the NASDAQ Global Select Market on January 28, 2017 was $271.44 per share. Restricted stock units The Company issued 55 restricted stock units during fiscal 2016 to certain employees and its Board of Directors. Employee grants will generally cliff vest after three years and director grants will cliff vest within one year. The grant date fair value of restricted stock units is based on the closing market price of shares of the Company’s common stock on the date of grant. Restricted stock units are expensed straight-line over the requisite service period. The compensation expense recorded in fiscal 2016, 2015 and 2014 was $7,295, $6,040 and $5,845, respectively. Forfeitures of restricted stock units are estimated at the grant date based on historical rates of the Company’s stock award activity and reduce the compensation expense recognized. At January 28, 2017, unrecognized compensation cost related to restricted stock units was $11,920. The unrecognized compensation expense is expected to be recognized over a weighted-average period of approximately one and a half years. A summary of the status of the Company’s restricted stock units activity is presented in the following table (shares in thousands): Fiscal 2016 Fiscal 2015 Fiscal 2014 Number Weighted- Number Weighted- Number Weighted- Restricted stock units outstanding Beginning of year 144 $ 116.42 151 $ 91.74 162 $ 87.54 Granted 55 203.40 60 154.77 71 97.73 Vested (46 ) 98.06 (47 ) 102.36 (52 ) 91.91 Forfeited (11 ) 138.25 (20 ) 96.11 (30 ) 82.91 End of year 142 $ 154.71 144 $ 116.42 151 $ 91.74 Expected to vest 131 $ 154.71 132 $ 116.42 140 $ 91.74 Performance-based restricted stock units The Company issued 24 performance-based restricted stock units in fiscal 2016. These awards will cliff vest after three years based upon achievement of pre-established goals at the end of the second year of the term. Consistent with restricted stock units, the grant date fair value of performance-based restricted stock units is based on the closing market price of shares of the Company’s common stock on the date of grant. Performance-based units are expensed on a straight-line basis over the requisite service period, based on the probability of achieving the performance goal, with changes in expectations recognized as an adjustment to earnings in the period of the change. If the performance goal is not met, no compensation cost is recognized and any previously recognized compensation cost is reversed. The compensation expense recorded in fiscal 2016 and 2015 was $4,062 and $1,655, respectively. Forfeitures of performance-based restricted stock awards are estimated at the grant date based on historical rates of the Company’s stock award activity and reduce the compensation expense recognized. At January 28, 2017, unrecognized compensation cost related to performance-based restricted stock units was $8,610. The unrecognized compensation expense is expected to be recognized over a weighted-average period of approximately two years. A summary of the status of the Company’s performance-based restricted stock unit activity is presented in the following table (shares in thousands): Fiscal 2016 Fiscal 2015 Number Weighted- Number Weighted- Performance-based restricted stock units outstanding Beginning of year 20 $ 151.20 — $ — Granted 24 191.76 22 151.20 Vested — — — — Forfeited (3 ) 167.71 (2 ) 151.20 End of year 41 $ 173.47 20 $ 151.20 Expected to vest 38 $ 173.47 19 $ 151.20 The number of performance-based units presented is based on achieving the targeted performance goals as defined in the performance-based unit agreements. As of January 28, 2017, the maximum number of units that could vest under the provisions of the agreements was 82. |
Net income per common share
Net income per common share | 12 Months Ended |
Jan. 28, 2017 | |
Earnings Per Share [Abstract] | |
Net income per common share | 11. Net income per common share The following is a reconciliation of net income and the number of shares of common stock used in the computation of net income per basic and diluted share: Fiscal year ended (In thousands, except per share data) January 28, January 30, January 31, Numerator for diluted net income per share – net income $ 409,760 $ 320,008 $ 257,135 Denominator for basic net income per share – weighted-average common shares 62,519 63,949 64,335 Dilutive effect of stock options and non-vested stock 332 326 316 Denominator for diluted net income per share 62,851 64,275 64,651 Net income per common share: Basic $ 6.55 $ 5.00 $ 4.00 Diluted $ 6.52 $ 4.98 $ 3.98 The denominator for diluted net income per common share for fiscal years 2016, 2015 and 2014 exclude 142, 370 and 686 employee stock options and restricted stock units, respectively, due to their anti-dilutive effects. Outstanding performance-based restricted stock units are included in the computation of dilutive shares only to the extent that the underlying performance conditions are satisfied prior to the end of the reporting period or would be considered satisfied if the end of the reporting period were the end of the related contingency period and the results would be dilutive under the treasury stock method. |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Jan. 28, 2017 | |
Postemployment Benefits [Abstract] | |
Employee benefit plans | 12. Employee benefit plans The Company provides a 401(k) retirement plan covering all employees who qualify as to age and length of service. The plan is funded through employee contributions and a Company match. In fiscal 2016, 2015 and 2014, the Company match was 100% of the first 3.0% of eligible compensation. As of January 28, 2017 and January 30, 2016, the liability for the Company match was $6,317 and $5,031, respectively. The Company also has a non-qualified deferred compensation plan for highly compensated employees whose contributions are limited under qualified defined contribution plans. The plan is funded through employee contributions and a Company match. In fiscal 2016, 2015 and 2014, the Company match was 100% of the first 3.0% of salary. For fiscal year 2016 and 2015, the liability for the Company match was $753 and $554, respectively. Amounts contributed and deferred under the plan are credited or charged with the performance of investment options offered under the plan as elected by the participants. In the event of bankruptcy, the assets of this plan are available to satisfy the claims of general creditors. The liability for compensation deferred under the Company’s plan included in other long-term liabilities was $10,474 and $7,491 as of January 28, 2017 and January 30, 2016, respectively. The Company manages the risk of changes in the fair value of the liability for deferred compensation by electing to match its liability under the plan with investment vehicles that offset a substantial portion of its exposure. The cash value of the investment vehicles included in deferred compensation plan assets was $11,283 and $8,145 as of January 28, 2017 and January 30, 2016, respectively. Total expense recorded under this plan is included in selling, general and administrative expenses and was insignificant during fiscal 2016 and 2015. |
Selected quarterly financial da
Selected quarterly financial data (unaudited) | 12 Months Ended |
Jan. 28, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected quarterly financial data (unaudited) | 13. Selected quarterly financial data (unaudited) The following tables set forth the Company’s unaudited quarterly results of operations for each of the quarters in fiscal 2016 and fiscal 2015. The Company’s quarterly periods are the 13 weeks ending on the Saturday closest to April 30, July 31, October 31 and January 31. 2016 First Second Third Fourth (In thousands, except per share data) Net sales $ 1,073,716 $ 1,069,215 $ 1,131,232 $ 1,580,574 Cost of sales 683,286 684,377 704,179 1,035,666 Gross profit 390,430 384,838 427,053 544,908 Selling, general and administrative expenses 240,724 236,380 280,464 316,266 Pre-opening expenses 2,542 4,689 6,928 4,412 Operating income 147,164 143,769 139,661 224,230 Interest income, net (315 ) (248 ) (211 ) (116 ) Income before income taxes 147,479 144,017 139,872 224,346 Income tax expense 55,503 54,013 52,310 84,128 Net income $ 91,976 $ 90,004 $ 87,562 $ 140,218 Net income per common share: Basic $ 1.46 $ 1.44 $ 1.40 $ 2.25 Diluted $ 1.45 $ 1.43 $ 1.40 $ 2.24 2015 First Second Third Fourth (In thousands, except per share data) Net sales $ 868,122 $ 876,999 $ 910,700 $ 1,268,295 Cost of sales 564,938 570,524 575,062 829,259 Gross profit 303,184 306,475 335,638 439,036 Selling, general and administrative expenses 192,485 183,937 218,763 268,169 Pre-opening expenses 3,117 4,078 6,106 1,381 Operating income 107,582 118,460 110,769 169,486 Interest income, net (311 ) (276 ) (283 ) (273 ) Income before income taxes 107,893 118,736 111,052 169,759 Income tax expense 40,947 44,567 39,982 61,936 Net income $ 66,946 $ 74,169 $ 71,070 $ 107,823 Net income per common share: Basic $ 1.04 $ 1.16 $ 1.11 $ 1.69 Diluted $ 1.04 $ 1.15 $ 1.11 $ 1.69 The sum of the quarterly net income per common share may not equal the annual total due to quarterly changes in the weighted average shares and share equivalents outstanding. |
Share repurchase program
Share repurchase program | 12 Months Ended |
Jan. 28, 2017 | |
Equity [Abstract] | |
Share repurchase program | 14. Share repurchase program On September 11, 2014, the Company announced that the Board of Directors authorized a share repurchase program (the 2014 Share Repurchase Program) pursuant to which the Company could repurchase up to $300,000 of the Company’s common stock. The 2014 Share Repurchase Program authorization revoked the previously authorized, but unused amounts of $112,664 from the share repurchase program adopted in 2013. On March 12, 2015, the Company announced that the Board of Directors authorized an increase of $100,000 to the 2014 Share Repurchase Program effective March 17, 2015. The 2014 Share Repurchase Program did not have an expiration date, but provided for suspension or discontinuation at any time. On March 10, 2016, the Company announced that the Board of Directors authorized a new share repurchase program (the 2016 Share Repurchase Program) pursuant to which the Company may repurchase up to $425,000 of the Company’s common stock. The 2016 Share Repurchase Program authorization revoked the previously authorized, but unused amounts of $172,386 from the 2014 Share Repurchase Program. The 2016 Share Repurchase Program does not have an expiration date and may be suspended or discontinued at any time. As part of the 2016 Share Repurchase Program, the Company entered into an Accelerated Share Repurchase (ASR) agreement with Goldman, Sachs & Co. to repurchase $200,000 of the Company’s common stock. Under the ASR agreement, the Company paid $200,000 to Goldman, Sachs & Co. and received an initial delivery of 852 shares in the first quarter of 2016, which were retired and represented 80% of the total shares the Company expected to receive based on the market price at the time of the initial delivery. In May 2016, the ASR settled and an additional 153 shares were delivered to the Company and retired. The final number of shares delivered upon settlement was determined with reference to the average price of the Company’s common stock over the term of the agreement. The transaction was accounted for as an equity transaction. The par value of shares received was recorded as a reduction to common stock with the remainder recorded as a reduction to additional paid-in capital and retained earnings. Upon receipt of the shares, there was an immediate reduction in the weighted average common shares calculation for basic and diluted earnings per share. During fiscal 2014, we purchased 321 shares of common stock for $39,923 at an average price of $124.31. During fiscal 2015, we purchased 1,034 shares of common stock for $167,396 at an average price of $161.81. During fiscal 2016, excluding the shares repurchased under the ASR, we purchased 634 shares of common stock for $144,275 at an average price of $227.49. |
Subsequent event
Subsequent event | 12 Months Ended |
Jan. 28, 2017 | |
Subsequent Events [Abstract] | |
Subsequent event | 15. Subsequent event On March 9, 2017, the Company announced that the Board of Directors authorized a new share repurchase program (the 2017 Share Repurchase Program) pursuant to which the Company may repurchase up to $425,000 of the Company’s common stock. The 2017 Share Repurchase Program authorization revokes the previously authorized but unused amounts from the 2016 Share Repurchase Program. The 2017 Share Repurchase Program does not have an expiration date and may be suspended or discontinued at any time. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 28, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Ulta Beauty, Inc. (in thousands) Description Balance at Charged to Deductions Balance at Fiscal 2016 Allowance for doubtful accounts $ 1,112 $ 1,709 $ (742 )(a) $ 2,079 Shrink reserve 15,259 35,505 (31,699 ) 19,065 Inventory – lower of cost or market reserve 5,003 10,691 (7,120 ) 8,574 Insurance: Workers Comp / General Liability Prepaid Asset (1,926 )(b) 9,578 (7,751 ) (99 ) Employee Health Care Accrued Liability 4,187 67,715 (64,705 ) 7,197 Fiscal 2015 Allowance for doubtful accounts $ 1,346 $ 2,063 $ (2,297 )(a) $ 1,112 Shrink reserve 11,598 29,894 (26,233 ) 15,259 Inventory – lower of cost or market reserve 5,253 3,323 (3,573 ) 5,003 Insurance: Workers Comp / General Liability Prepaid Asset (1,789 )(b) 5,935 (6,072 ) (1,926 ) Employee Health Care Accrued Liability 2,435 55,423 (53,671 ) 4,187 Fiscal 2014 Allowance for doubtful accounts $ 915 $ 874 $ (443 )(a) $ 1,346 Shrink reserve 9,358 22,374 (20,134 ) 11,598 Inventory – lower of cost or market reserve 4,861 4,368 (3,976 ) 5,253 Insurance: Workers Comp / General Liability Prepaid Asset (1,817 )(b) 6,899 (6,871 ) (1,789 ) Employee Health Care Accrued Liability 2,606 41,335 (41,506 ) 2,435 (a) Represents write-off of uncollectible accounts (b) Represents prepaid insurance |
Summary of significant accoun23
Summary of significant accounting policies (Policies) | 12 Months Ended |
Jan. 28, 2017 | |
Accounting Policies [Abstract] | |
Fiscal year | Fiscal year The Company’s fiscal year is the 52 or 53 weeks ending on the Saturday closest to January 31. The Company’s fiscal years ended January 28, 2017 (fiscal 2016), January 30, 2016 (fiscal 2015) and January 31, 2015 (fiscal 2014) were 52 week years. |
Consolidation | Consolidation The Company’s consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts, transactions and unrealized profit were eliminated in consolidation. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the accounting period. Actual results could differ from those estimates. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash on hand and highly liquid investments with maturities of three months or less from the date of purchase. Cash equivalents include amounts due from third-party credit card receivables because such amounts generally convert to cash within one to three days with little or no default risk. |
Short-term investments | Short-term investments The Company determines the balance sheet classification of its investments at the time of purchase and evaluates the classification at each balance sheet date. Money market funds, certificates of deposit and time deposits with maturities of greater than three months but no more than twelve months are carried at cost, which approximates fair value and are recorded in the Consolidated Balance Sheets in Short-term investments (see Note 9, “Investments”). |
Receivables | Receivables Receivables consist principally of amounts receivable from vendors and landlord construction allowances earned but not yet received. These receivables are computed based on provisions of the vendor and lease agreements in place and the Company’s completed performance. The Company’s vendors are producers of consumer products and landlords. The Company does not require collateral on its receivables and does not accrue interest. Credit risk with respect to receivables is limited due to the diversity of vendors and landlords comprising the Company’s vendor base. The Company performs ongoing credit evaluations of its vendors and evaluates the collectability of its receivables based on the length of time the receivable is past due and historical experience. The receivable for vendor allowances was $59,553 and $46,932 as of January 28, 2017 and January 30, 2016, respectively, and the receivable for landlord allowances was $23,186 and $10,250 as of January 28, 2017 and January 30, 2016, respectively. The allowance for doubtful receivables totaled $2,079 and $1,112 as of January 28, 2017 and January 30, 2016, respectively. |
Merchandise inventories | Merchandise inventories Merchandise inventories are stated at the lower of cost or market. Cost is determined using the weighted-average cost method and includes costs incurred to purchase and distribute goods. Inventory cost also includes vendor allowances related to co-op advertising, markdowns, and volume discounts. The Company maintains reserves for lower of cost or market and shrinkage. |
Fair value of financial instruments | Fair value of financial instruments The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximates their estimated fair values due to the short maturities of these instruments. The Company had no outstanding debt as of January 28, 2017 and January 30, 2016. |
Property and equipment | Property and equipment The Company’s property and equipment are stated at cost net of accumulated depreciation and amortization. Maintenance and repairs are charged to operating expense as incurred. The Company’s assets are depreciated or amortized using the straight-line method, over the shorter of their estimated useful lives or the expected lease term as follows: Equipment and fixtures 3 to 10 years Leasehold improvements 10 years Electronic equipment and software 3 to 5 years The Company capitalizes costs incurred during the application development stage in developing or purchasing internal use software. These costs are amortized over the estimated useful life of the software. The Company periodically evaluates whether changes have occurred that would require revision of the remaining useful life of equipment and leasehold improvements or render them not recoverable. If such circumstances arise, the Company uses an estimate of the undiscounted sum of expected future operating cash flows during their holding period to determine whether the long-lived assets are impaired. If the aggregate undiscounted cash flows are less than the carrying amount of the assets, the resulting impairment charges to be recorded are calculated based on the excess of the carrying value of the assets over the fair value of such assets, with the fair value determined based on an estimate of discounted future cash flows. The Company recognized $3,124 of fixed asset impairment charges related to store closures in Chicago, Illinois and Denham Springs, Louisiana in fiscal 2016,which is included in selling, general and administrative (SG&A) expenses in the statements of income. No significant impairment charges were recognized in fiscal 2015 or 2014. |
Customer loyalty program | Customer loyalty program In early fiscal 2014, we completed the conversion of all our loyalty members to Ultamate Rewards, a points-based program. Ultamate Rewards enables customers to earn points based on their purchases. Points earned by members are valid for at least one year and may be redeemed on any product we sell. Prior to this conversion, we ran both Ultamate Rewards and our prior program, The Club at Ulta. The Club at Ulta was a certificate program offering customers reward certificates for free beauty products based on the level of purchases. The Company accrues the cost of anticipated redemptions related to these programs at the time of the initial purchase based on historical experience. The accrued liability related to these loyalty programs at January 28, 2017 and January 30, 2016 was $30,244 and $20,026 respectively. The cost of these programs, which was $77,145, $54,464 and $42,096 in fiscal 2016, 2015 and 2014, respectively, is included in cost of sales in the statements of income. |
Credit Cards | Credit Cards During 2016, the Company entered into certain agreements (the Agreements) with third parties to provide our guests with private label and/or co-branded credit cards (collectively, the Credit Cards). The private label credit card can be used at any of our store locations and online and the co-branded credit card can be used anywhere the co-branded card is accepted. A third-party financing company is the sole owner of the accounts and underwrites the credit issued under the Credit Card programs. The Company receives payments and reimbursements of expenses in accordance with the Agreements and based on usage of the Credit Cards. We recognize income for such cash receipts when the amounts are fixed or determinable and collectability is reasonably assured, which is generally the time at which the actual usage of the Credit Cards or specified transaction occurs. A majority of the funds received are recorded as a reduction of SG&A expenses, and the remaining portion is recognized as a reduction to cost of sales in our statements of income. Our loyalty members earn points through purchases at Ulta Beauty and anywhere the co-branded card is accepted. Consistent with the current accounting for the customer loyalty program, the Company accrues the cost of anticipated redemptions related to these programs at the time of the initial purchase and costs are included in cost of sales in the statements of income. Other administrative costs related to the Credit Card programs, including payroll, marketing expenses, and other direct costs, are included in SG&A in the statements of income. |
Deferred rent | Deferred rent Many of the Company’s operating leases contain predetermined fixed increases of the minimum rental rate during the lease. For these leases, the Company recognizes the related rental expense on a straight-line basis over the expected lease term and records the difference between the amounts charged to expense and the rent paid as deferred rent. The lease term commences on the earlier of the date when the Company becomes legally obligated for rent payments or the date the Company takes possession of the leased space. As part of many lease agreements, the Company receives construction allowances from landlords for tenant improvements. These leasehold improvements made by the Company are capitalized and amortized over the shorter of the lease term or 10 years. The construction allowances are recorded as deferred rent and amortized on a straight-line basis over the lease term as a reduction of rent expense. |
Revenue recognition | Revenue recognition Net sales include merchandise sales, salon service revenue and e-commerce revenue. Revenue from merchandise sales at stores is recognized at the time of sale, net of estimated returns. The Company provides refunds for product returns within 60 days from the original purchase date. Salon revenue is recognized when services are rendered. Salon service revenue amounted to $241,105, $209,249 and $175,533 for fiscal 2016, 2015 and 2014, respectively. Company coupons and other incentives are recorded as a reduction of net sales. State sales taxes are presented on a net basis as the Company considers itself a pass-through conduit for collecting and remitting state sales tax. E-commerce sales are recorded based on delivery of merchandise to the customer. E-commerce revenue amounted to $345,342, $221,077 and $149,857 for fiscal 2016, 2015 and 2014, respectively. The Company’s gift card sales are deferred and recognized in net sales when the gift card is redeemed for product or services. The Company’s gift cards do not expire and do not include service fees that decrease customer balances. The Company has maintained Company-specific, historical data related to its large pool of similar gift card transactions sold and redeemed over a significant time frame. The Company recognizes gift card breakage to the extent there is no requirement for remitting balances to governmental agencies under unclaimed property laws. Gift card breakage is recognized over the same performance period, and in the same proportion, that the Company’s data has demonstrated that gift cards are redeemed. Gift card breakage was $5,335 and $3,728 at January 28, 2017 and January 30, 2016, respectively, and is recorded as a decrease in SG&A expense in the statements of income. Deferred gift card revenue was $46,268 and $31,830 at January 28, 2017 and January 30, 2016, respectively, and is included in accrued liabilities – accrued customer liabilities (see Note 5, “Accrued liabilities”). |
Vendor allowances | Vendor allowances The Company receives allowances from vendors in the normal course of business including advertising and markdown allowances, purchase volume discounts and rebates, and reimbursement for defective merchandise, and certain selling and display expenses. Substantially all vendor allowances are recorded as a reduction of the vendor’s product cost and are recognized in cost of sales as the product is sold. |
Advertising | Advertising Advertising expense consists principally of paper, print and distribution costs related to the Company’s advertising circulars, as well as television, radio and digital advertising. The Company expenses the production and distribution costs related to its advertising circulars in the period the related promotional event occurs. Total advertising costs, exclusive of incentives from vendors and start-up advertising expense, amounted to $212,714, $187,158 and $157,847 for fiscal 2016, 2015 and 2014, respectively. Advertising expense as a percentage of sales was 4.4%, 4.8% and 4.9% for fiscal 2016, 2015 and 2014, respectively. Prepaid advertising costs included in prepaid expenses and other current assets were $9,901 and $6,413 as of January 28, 2017 and January 30, 2016, respectively. |
Pre-opening expenses | Pre-opening expenses Non-capital expenditures incurred prior to the grand opening of a new, remodeled or relocated store are charged against earnings as incurred. |
Cost of sales | Cost of sales Cost of sales includes the cost of merchandise sold (retail and e-commerce), including a majority of vendor allowances, which are treated as a reduction of merchandise costs; warehousing and distribution costs including labor and related benefits, freight, rent, depreciation and amortization, real estate taxes, utilities, and insurance; shipping and handling costs; store occupancy costs including rent, depreciation and amortization, real estate taxes, utilities, repairs and maintenance, insurance, licenses, and cleaning expenses; salon payroll and benefits; customer loyalty program expense; and shrink and inventory valuation reserves. |
Selling, general and administrative expenses | Selling, general and administrative expenses Selling, general and administrative expenses includes payroll, bonus, and benefit costs for retail and corporate employees; advertising and marketing costs; credit card program incentives; occupancy costs related to our corporate office facilities; public company expense including Sarbanes-Oxley Act of 2002 compliance expenses; stock-based compensation expense; depreciation and amortization for all assets except those related to our retail and warehouse operations, which are included in cost of sales; and legal, finance, information systems and other corporate overhead costs. |
Income taxes | Income taxes Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities used for financial reporting purposes and the amounts used for income tax purposes. The amounts reported were derived using the enacted tax rates in effect for the year the differences are expected to reverse. Income tax benefits related to uncertain tax positions are recognized only when it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that each uncertain tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information. Penalties and interest related to unrecognized tax positions are recorded in income tax expense. |
Share-based compensation | Share-based compensation Share-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized on a straight-line method over the requisite service period for awards expected to vest. The Company recorded stock compensation expense of $19,340, $15,594 and $14,923 for fiscal 2016, 2015 and 2014, respectively (see Note 10, “Share-based awards”). |
Insurance expense | Insurance expense The Company has insurance programs with third party insurers for employee health, workers compensation and general liability, among others, to limit the Company’s liability exposure. The insurance programs are premium based and include retentions, deductibles and stop loss coverage. Current stop loss coverage per claim is $350 for employee health claims, $100 for general liability claims and $250 for workers compensation claims. The Company makes collateral and premium payments during the plan year and accrues expenses in the event additional premium is due from the Company based on actual claim results. |
Net income per common share | Net income per common share Basic net income per common share is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share includes dilutive common stock equivalents, using the treasury stock method (see Note 11, “Net income per common share”). |
Recent accounting pronouncements not yet adopted | Recent accounting pronouncements not yet adopted Revenue Recognition from Contracts with Customers In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, issued as a new Topic, Accounting Standards Codification Topic 606 (ASU 2014-09). The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that we will recognize revenue when we transfer promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 Revenue from Contracts with Customers (Topic 606), which delayed the effective date of ASU 2014-09 by one year. With the deferral, the revenue recognition standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods with early adoption permitted for annual reporting periods beginning after December 15, 2016, including interim reporting periods. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (ASU 2016-08) which further clarifies how to implement revenue recognition guidance related to determining whether an entity is a principal or an agent in a revenue transaction. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (ASU 2016-10) which further clarifies the aspects of (a) identifying performance obligations and (b) the licensing implementation guidance. The effective date and transition requirements for ASU 2016-08 and ASU 2016-10 are the same as the effective date and transition requirements of ASU 2014-09. These standards allow for either full retrospective or modified retrospective adoption. The Company will adopt the new guidance in fiscal 2018, and anticipates using the modified retrospective method. The Company has formed a project team to review our current accounting policies and practices, assess the effect of the standard on our revenue transactions and identify potential differences. While we will continue to evaluate possible impacts on our consolidated financial statements, ASU 2014-09 is expected to impact the recognition timing or classification of revenues and expenses for our sales refund reserve, gift card breakage and loyalty program accounting, however, the Company does not expect a significant impact to pretax income upon adoption. In addition, we are in the process of evaluating changes to our business processes and controls to support recognition and disclosure under the new standard. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This standard will change the way all leases of one year or more are treated. Under this guidance, lessees will be required to capitalize virtually all leases on the balance sheet as a right-of-use asset and recognize an associated financing lease liability or capital lease liability. The right-of-use asset represents the lessee’s right to use, or control the use of, a specified asset for the specified lease term. The lease liability represents the lessee’s obligation to make lease payments arising from the lease, measured on a discounted basis. Based on certain characteristics, leases are classified as financing leases or operating leases. Financing lease liabilities, those that contain provisions similar to capitalized leases, are amortized like capital leases under current GAAP as amortization expense and interest expense in the statement of operations. Operating lease liabilities are amortized on a straight-line basis over the life of the lease as lease expense in the statement of operations. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018, including interim reporting periods. At January 28, 2017, the Company has made a decision to early adopt the new standard in fiscal 2018. The Company has formed a project team to review our current accounting policies and practices and assess the effect of the standard on our consolidated financial statements. The team has completed a preliminary assessment of the potential impact of adopting ASU 2016-02 on its financial statements. The adoption of this ASU 2016-02 will have a material impact on the Company’s financial position, however the Company does not believe adoption of this standard will have a material impact on the Company’s results of operations or cash flows. Liabilities – Extinguishments of Liabilities In March 2016, the FASB issued ASU 2016-04, Liabilities – Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored – Value Products. This update entitles a company to derecognize amounts related to expected breakage to the extent that it is probable a significant reversal of the recognized breakage amount will not subsequently occur. ASU 2016-04 is effective for annual and interim periods beginning after December 15, 2017, and early adoption is permitted. The adoption of ASU 2016-04 is not expected to have a material impact on the Corporation’s consolidated financial position, results of operations and cash flows. Compensation – Stock Compensation In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This guidance will change how companies account for certain aspects of share-based payments to employees. Companies will have to recognize all income tax effects of awards in the income statement when the awards vest or are settled, and additional paid-in capital pools will be eliminated. The guidance on employer’s accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation and for forfeitures is changing, and two practical expedients for non-public entities have been added. ASU 2016-09 is effective for annual and interim reporting periods beginning after December 15, 2016, and early adoption is permitted. The Company will adopt the new guidance in the first quarter of fiscal 2017. The potential impact that the adoption of ASU 2016-9 will have on the Company’s financial statements during and after the period of adoption are dependent, in part, upon factors that are not fully controllable or predictable by the Company, including future vesting of stock-based awards, market price of the Company’s common stock, timing of employee exercises of vested stock options and achievement of performance criteria that affect the vesting of performance-based awards. However, based on the market price of the Company’s common stock and its outstanding restricted stock units and unexercised stock options as of January 28, 2017, the Company anticipates that the adoption of this pronouncement will result in lower income tax expense in fiscal year 2017 and this anticipated income tax benefit will be reported as a component of cash flows from operating activities. Additionally, the Company will continue to include the impact of estimated forfeitures when determining share-based compensation expense. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). ASU 2016-15 provides classification guidance on certain cash receipts and cash payments, including, but not limited to, debt prepayment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of bank-owned life insurance policies and distributions received from equity method investees. The adoption of ASU 2016-15 requires a retrospective transition method applied to each period presented. ASU 2016-15 is effective for annual periods and interim periods beginning after December 15, 2017, and early adoption is permitted. The adoption of ASU 2016-15 is not expected to have a material impact on the Company’s consolidated financial position, results of operations and cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the Emerging Issues Task Force), which amends ASU Topic 230. ASU 2016-18 requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer be required to present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. Entities will also have to disclose the nature of their restricted cash and restricted cash equivalent balances. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 and interim periods within those years and early adoption is permitted. Entities are required to apply the guidance retrospectively. The adoption of ASU 2016-18 is not expected to have a material impact on the Company’s consolidated financial position, results of operations and cash flows. Recently adopted accounting pronouncements Stock Compensation In June 2014, the FASB issued ASU 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This update clarifies the accounting for share-based awards with performance targets. ASU 2014-12 is effective for public companies for annual reporting periods beginning after December 15, 2015, including interim reporting periods. As permitted, the Company adopted this standard, prospectively, in its first quarter ended April 30, 2016 and its adoption had no impact on its consolidated financial position, results of operations and cash flows. Goodwill and other In April 2015, the FASB issued ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customers’ Accounting for Fees Paid in a Cloud Computing Arrangement. This standard provides guidance to determine whether a cloud-based computing arrangement includes a software license. If a cloud-based computing arrangement includes a software license, the customer must account for the software element of the arrangement consistent with the acquisition of other software licenses. Otherwise, the customer must account for the arrangement as a service contract. As permitted, the Company adopted this standard, prospectively, in its first quarter ended April 30, 2016 and its adoption had no impact on its consolidated financial position, results of operations and cash flows. |
Business and basis of present24
Business and basis of presentation (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percentage of Net Sales Attributed to Merchandise Category | The following table sets forth the approximate percentage of net sales attributed to each category for the periods indicated: Fiscal year ended January 28, January 30, January 31, Cosmetics 51 % 46 % 42 % Skincare, Bath & Fragrance 20 % 23 % 24 % Haircare Products & Styling Tools 20 % 22 % 24 % Salon Services 5 % 5 % 5 % Other 4 % 4 % 5 % 100 % 100 % 100 % |
Summary of significant accoun25
Summary of significant accounting policies (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Accounting Policies [Abstract] | |
Summary of Estimated Useful Lives or Expected Lease Term | The Company’s assets are depreciated or amortized using the straight-line method, over the shorter of their estimated useful lives or the expected lease term as follows: Equipment and fixtures 3 to 10 years Leasehold improvements 10 years Electronic equipment and software 3 to 5 years |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment consists of the following: January 28, January 30, (In thousands) 2017 2016 Equipment and fixtures $ 708,754 $ 556,499 Leasehold improvements 607,690 515,712 Electronic equipment and software 437,262 353,940 Construction-in-progress 49,411 75,804 1,803,117 1,501,955 Less: accumulated depreciation and amortization (798,759 ) (654,355 ) Property and equipment, net $ 1,004,358 $ 847,600 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments Under Operating Leases | Future minimum lease payments under operating leases as of January 28, 2017, are as follows: Operating Leases Fiscal year (in thousands) 2017 $ 270,684 2018 274,625 2019 259,875 2020 246,209 2021 228,073 2022 and thereafter 726,575 Total minimum lease payments $ 2,006,041 |
Accrued liabilities (Tables)
Accrued liabilities (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: January 28, January 30, (In thousands) 2017 2016 Accrued vendor liabilities (including accrued property and equipment costs) $ 44,804 $ 27,894 Accrued customer liabilities 47,441 54,496 Accrued payroll, bonus and employee benefits 84,555 61,068 Accrued taxes, other 24,883 20,486 Other accrued liabilities 59,171 23,407 Accrued liabilities $ 260,854 $ 187,351 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following: Fiscal Fiscal Fiscal (In thousands) 2016 2015 2014 Current: Federal $ 194,199 $ 163,048 $ 128,159 State 24,835 18,694 16,909 Total current 219,034 181,742 145,068 Deferred: Federal 24,480 6,981 8,392 State 2,440 (1,291 ) 714 Total deferred 26,920 5,690 9,106 Provision for income taxes $ 245,954 $ 187,432 $ 154,174 |
Schedule of Reconciliation of Federal Statutory Rate to Effective Tax Rate | A reconciliation of the federal statutory rate to the Company’s effective tax rate is as follows: Fiscal Fiscal Fiscal Federal statutory rate 35.0 % 35.0 % 35.0 % State effective rate, net of federal tax benefit 2.8 % 2.2 % 2.8 % Other (0.3 %) (0.3 %) (0.3 %) Effective tax rate 37.5 % 36.9 % 37.5 % |
Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: January 28, January 30, (In thousands) 2017 2016 Deferred tax assets: Reserves not currently deductible $ 33,805 $ 27,734 Employee benefits 15,206 10,594 Credit carryforwards 398 441 Accrued liabilities 10,539 10,704 Inventory valuation 3,630 257 Total deferred tax assets 63,578 49,730 Deferred tax liabilities: Property and equipment 73,454 48,898 Deferred rent obligation 62,252 49,548 Prepaid expenses 14,370 10,811 Total deferred tax liabilities 150,076 109,257 Net deferred tax liability $ (86,498 ) $ (59,527 ) |
Reconciliation of Company's Unrecognized Tax Benefits, Excluding Interest and Penalties | A reconciliation of the Company’s unrecognized tax benefits, excluding interest and penalties, is as follows: (In thousands) January 28, January 30, Balance at beginning of the period $ 2,262 $ 1,414 Increase due to a current year position 1,048 900 Decrease due to a prior period position (5 ) (52 ) Balance at the end of the period $ 3,305 $ 2,262 |
Share-based awards (Tables)
Share-based awards (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Black-Scholes Valuation Model Weighted-Average Assumptions | The Company estimated the grant date fair value of stock options using a Black-Scholes valuation model using the following weighted-average assumptions: Fiscal Fiscal Fiscal Volatility rate 35.0% 37.9% 40.7% Average risk-free interest rate 1.2% 1.6% 1.4% Average expected life (in years) 3.5 4.9 3.8 Dividend yield None None None |
Summary of Options Outstanding and Options Exercisable Under Stock Option Plan | The following table presents information related to options outstanding and options exercisable at January 28, 2017, under the Company’s stock option plans based on ranges of exercise prices (shares in thousands): Options outstanding Options exercisable Range of Exercise Prices Number of Weighted- Weighted- Number of Weighted- Weighted- $9.67 - $57.42 112 3 $ 25.13 112 3 $ 25.13 $69.96 - $96.81 119 6 82.19 81 6 80.65 $97.89 - $99.66 153 7 98.12 36 7 98.08 $101.35 - $153.87 134 8 136.78 50 8 129.41 $164.06 - $165.27 206 9 164.09 1 9 165.01 $191.76 - $249.64 106 9 193.70 — — — $9.67 - $249.64 830 7 $ 120.78 280 5 $ 69.69 |
Employee Stock Option [Member] | |
Stock Option Activity | A summary of the status of the Company’s stock option activity is presented in the following table (shares in thousands): Fiscal 2016 Fiscal 2015 Fiscal 2014 Number of Weighted- Number of Weighted- Number of Weighted- Common stock options outstanding Beginning of year 939 $ 104.58 1,073 $ 72.12 1,090 $ 56.94 Granted 110 193.64 294 160.01 371 99.40 Exercised (194 ) 83.88 (356 ) 55.20 (238 ) 44.79 Forfeited (25 ) 118.97 (72 ) 91.74 (150 ) 72.57 End of year 830 $ 120.78 939 $ 104.58 1,073 $ 72.12 Exercisable at end of year 280 $ 69.69 316 $ 61.44 440 $ 43.98 Vested and Expected to vest 786 $ 119.32 890 $ 103.36 1,028 $ 71.28 |
Restricted Stock [Member] | |
Restricted Stock Units Activity | A summary of the status of the Company’s restricted stock units activity is presented in the following table (shares in thousands): Fiscal 2016 Fiscal 2015 Fiscal 2014 Number Weighted- Number Weighted- Number Weighted- Restricted stock units outstanding Beginning of year 144 $ 116.42 151 $ 91.74 162 $ 87.54 Granted 55 203.40 60 154.77 71 97.73 Vested (46 ) 98.06 (47 ) 102.36 (52 ) 91.91 Forfeited (11 ) 138.25 (20 ) 96.11 (30 ) 82.91 End of year 142 $ 154.71 144 $ 116.42 151 $ 91.74 Expected to vest 131 $ 154.71 132 $ 116.42 140 $ 91.74 |
Performance Based Restricted Stock Units [Member] | |
Restricted Stock Units Activity | A summary of the status of the Company’s performance-based restricted stock unit activity is presented in the following table (shares in thousands): Fiscal 2016 Fiscal 2015 Number Weighted- Number Weighted- Performance-based restricted stock units outstanding Beginning of year 20 $ 151.20 — $ — Granted 24 191.76 22 151.20 Vested — — — — Forfeited (3 ) 167.71 (2 ) 151.20 End of year 41 $ 173.47 20 $ 151.20 Expected to vest 38 $ 173.47 19 $ 151.20 |
Net income per common share (Ta
Net income per common share (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Basic and Diluted Share | The following is a reconciliation of net income and the number of shares of common stock used in the computation of net income per basic and diluted share: Fiscal year ended (In thousands, except per share data) January 28, January 30, January 31, Numerator for diluted net income per share – net income $ 409,760 $ 320,008 $ 257,135 Denominator for basic net income per share – weighted-average common shares 62,519 63,949 64,335 Dilutive effect of stock options and non-vested stock 332 326 316 Denominator for diluted net income per share 62,851 64,275 64,651 Net income per common share: Basic $ 6.55 $ 5.00 $ 4.00 Diluted $ 6.52 $ 4.98 $ 3.98 |
Selected quarterly financial 32
Selected quarterly financial data (unaudited) (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | The following tables set forth the Company’s unaudited quarterly results of operations for each of the quarters in fiscal 2016 and fiscal 2015. The Company’s quarterly periods are the 13 weeks ending on the Saturday closest to April 30, July 31, October 31 and January 31. 2016 First Second Third Fourth (In thousands, except per share data) Net sales $ 1,073,716 $ 1,069,215 $ 1,131,232 $ 1,580,574 Cost of sales 683,286 684,377 704,179 1,035,666 Gross profit 390,430 384,838 427,053 544,908 Selling, general and administrative expenses 240,724 236,380 280,464 316,266 Pre-opening expenses 2,542 4,689 6,928 4,412 Operating income 147,164 143,769 139,661 224,230 Interest income, net (315 ) (248 ) (211 ) (116 ) Income before income taxes 147,479 144,017 139,872 224,346 Income tax expense 55,503 54,013 52,310 84,128 Net income $ 91,976 $ 90,004 $ 87,562 $ 140,218 Net income per common share: Basic $ 1.46 $ 1.44 $ 1.40 $ 2.25 Diluted $ 1.45 $ 1.43 $ 1.40 $ 2.24 2015 First Second Third Fourth (In thousands, except per share data) Net sales $ 868,122 $ 876,999 $ 910,700 $ 1,268,295 Cost of sales 564,938 570,524 575,062 829,259 Gross profit 303,184 306,475 335,638 439,036 Selling, general and administrative expenses 192,485 183,937 218,763 268,169 Pre-opening expenses 3,117 4,078 6,106 1,381 Operating income 107,582 118,460 110,769 169,486 Interest income, net (311 ) (276 ) (283 ) (273 ) Income before income taxes 107,893 118,736 111,052 169,759 Income tax expense 40,947 44,567 39,982 61,936 Net income $ 66,946 $ 74,169 $ 71,070 $ 107,823 Net income per common share: Basic $ 1.04 $ 1.16 $ 1.11 $ 1.69 Diluted $ 1.04 $ 1.15 $ 1.11 $ 1.69 |
Business and Basis of Present33
Business and Basis of Presentation - Additional Information (Detail) | 12 Months Ended |
Jan. 28, 2017StateStoreSegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of stores | Store | 974 |
Number of states in which entity operates | State | 48 |
Number of operating segments | 3 |
Number of reportable segments | 1 |
Business and Basis of Present34
Business and Basis of Presentation - Percentage of Net Sales Attributed to Merchandise Category (Detail) | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Cosmetics [Member] | |||
Product Information [Line Items] | |||
Sales percentage | 51.00% | 46.00% | 42.00% |
Skincare, Bath & Fragrance [Member] | |||
Product Information [Line Items] | |||
Sales percentage | 20.00% | 23.00% | 24.00% |
Haircare Products & Styling Tools [Member] | |||
Product Information [Line Items] | |||
Sales percentage | 20.00% | 22.00% | 24.00% |
Salon Services [Member] | |||
Product Information [Line Items] | |||
Sales percentage | 5.00% | 5.00% | 5.00% |
Other [Member] | |||
Product Information [Line Items] | |||
Sales percentage | 4.00% | 4.00% | 5.00% |
Sales Revenue Net [Member] | |||
Product Information [Line Items] | |||
Sales percentage | 100.00% | 100.00% | 100.00% |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||
Allowance for doubtful receivable | $ 2,079,000 | $ 1,112,000 | |
Outstanding debt | 0 | 0 | |
Fixed asset impairment charges | 3,124,000 | 0 | $ 0 |
Accrued liability loyalty programs | 30,244,000 | 20,026,000 | |
Cost of loyalty programs | $ 77,145,000 | 54,464,000 | 42,096,000 |
Duration of refund for sales return | 60 days | ||
Deferred gift card revenue | $ 46,268,000 | 31,830,000 | |
Gift card breakage | 5,335,000 | 3,728,000 | |
Total advertising costs | 212,714,000 | 187,158,000 | 157,847,000 |
Prepaid advertising costs | 9,901,000 | 6,413,000 | |
Stock compensation expense | 19,340,000 | $ 15,594,000 | $ 14,923,000 |
Stop loss coverage of employee health claims | 350,000 | ||
Stop loss coverage of general liability claims | 100,000 | ||
Stop loss coverage of workers compensation claims | $ 250,000 | ||
Sales [Member] | |||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||
Percentage of advertisement expense to sales | 4.40% | 4.80% | 4.90% |
Leasehold Improvements [Member] | |||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||
Estimated useful lives or the expected lease term | 10 years | ||
Salon Service [Member] | |||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||
Revenue from Salon service | $ 241,105,000 | $ 209,249,000 | $ 175,533,000 |
E-commerce [Member] | |||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||
Revenue from E-Commerce | 345,342,000 | 221,077,000 | $ 149,857,000 |
Vendor Allowances [Member] | |||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||
Allowances receivable | 59,553,000 | 46,932,000 | |
Landlord Allowances [Member] | |||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||
Allowances receivable | $ 23,186,000 | $ 10,250,000 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives or Expected Lease Term (Detail) | 12 Months Ended |
Jan. 28, 2017 | |
Equipment and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives or the expected lease term | 3 years |
Equipment and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives or the expected lease term | 10 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives or the expected lease term | 10 years |
Electronic Equipment and Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives or the expected lease term | 3 years |
Electronic Equipment and Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives or the expected lease term | 5 years |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Jan. 28, 2017 | Jan. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 1,803,117 | $ 1,501,955 |
Less: accumulated depreciation and amortization | (798,759) | (654,355) |
Property and equipment, net | 1,004,358 | 847,600 |
Equipment and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 708,754 | 556,499 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 607,690 | 515,712 |
Electronic Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 437,262 | 353,940 |
Construction-in-progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 49,411 | $ 75,804 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jan. 28, 2017 | Jan. 30, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Capitalized interest | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information - Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Long-term Purchase Commitment [Line Items] | |||
Total rent expense under operating leases | $ 202,942 | $ 181,487 | $ 159,245 |
Retail Stores [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Minimum lease payments for stores to be opened in future periods | $ 315,230 | ||
Minimum [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Non-cancelable operating lease terms | 3 years | ||
Maximum [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Non-cancelable operating lease terms | 10 years |
Commitments and Contingencies40
Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Operating Leases (Detail) $ in Thousands | Jan. 28, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,017 | $ 270,684 |
2,018 | 274,625 |
2,019 | 259,875 |
2,020 | 246,209 |
2,021 | 228,073 |
2022 and thereafter | 726,575 |
Total minimum lease payments | $ 2,006,041 |
Commitments and Contingencies41
Commitments and Contingencies - Additional Information - Contractual Obligations (Detail) $ in Thousands | 12 Months Ended |
Jan. 28, 2017USD ($) | |
Non Cancelable Advertising Other Goods And Service Contracts [Member] | |
Long-term Purchase Commitment [Line Items] | |
Contractual obligations related to commitments | $ 19,797 |
Contractual obligation agreements expiry period | 1 year |
Multi-Year Supply Chain [Member] | |
Long-term Purchase Commitment [Line Items] | |
Contractual obligations related to commitments | $ 27,666 |
Payments under commitments | $ 11,528 |
Commitments and Contingencies42
Commitments and Contingencies - Additional Information - General Litigation (Detail) | Jan. 28, 2017Lawsuits |
Commitments and Contingencies Disclosure [Abstract] | |
Putative employment class action lawsuits | 3 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jan. 28, 2017 | Jan. 30, 2016 |
Schedule Of Accrued Liabilities [Abstract] | ||
Accrued vendor liabilities (including accrued property and equipment costs) | $ 44,804 | $ 27,894 |
Accrued customer liabilities | 47,441 | 54,496 |
Accrued payroll, bonus and employee benefits | 84,555 | 61,068 |
Accrued taxes, other | 24,883 | 20,486 |
Other accrued liabilities | 59,171 | 23,407 |
Accrued liabilities | $ 260,854 | $ 187,351 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May 02, 2015 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Current: | |||||||||||
Federal | $ 194,199 | $ 163,048 | $ 128,159 | ||||||||
State | 24,835 | 18,694 | 16,909 | ||||||||
Total current | 219,034 | 181,742 | 145,068 | ||||||||
Deferred: | |||||||||||
Federal | 24,480 | 6,981 | 8,392 | ||||||||
State | 2,440 | (1,291) | 714 | ||||||||
Total deferred | 26,920 | 5,690 | 9,106 | ||||||||
Provision for income taxes | $ 84,128 | $ 52,310 | $ 54,013 | $ 55,503 | $ 61,936 | $ 39,982 | $ 44,567 | $ 40,947 | $ 245,954 | $ 187,432 | $ 154,174 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Federal Statutory Rate to Effective Tax Rate (Detail) | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
State effective rate, net of federal tax benefit | 2.80% | 2.20% | 2.80% |
Other | (0.30%) | (0.30%) | (0.30%) |
Effective tax rate | 37.50% | 36.90% | 37.50% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jan. 28, 2017 | Jan. 30, 2016 |
Deferred tax assets: | ||
Reserves not currently deductible | $ 33,805 | $ 27,734 |
Employee benefits | 15,206 | 10,594 |
Credit carryforwards | 398 | 441 |
Accrued liabilities | 10,539 | 10,704 |
Inventory valuation | 3,630 | 257 |
Total deferred tax assets | 63,578 | 49,730 |
Deferred tax liabilities: | ||
Property and equipment | 73,454 | 48,898 |
Deferred rent obligation | 62,252 | 49,548 |
Prepaid expenses | 14,370 | 10,811 |
Total deferred tax liabilities | 150,076 | 109,257 |
Net deferred tax liability | $ (86,498) | $ (59,527) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 28, 2017 | Jan. 30, 2016 |
Income Tax Disclosure [Abstract] | ||
Credit carryforwards for state income tax | $ 398 | $ 441 |
Reserve for uncertain tax positions | $ 3,305 | $ 2,262 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Company's Unrecognized Tax Benefits, Excluding Interest and Penalties (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 28, 2017 | Jan. 30, 2016 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | ||
Balance at beginning of the period | $ 2,262 | $ 1,414 |
Increase due to a current year position | 1,048 | 900 |
Decrease due to a prior period position | (5) | (52) |
Balance at the end of the period | $ 3,305 | $ 2,262 |
Notes Payable - Additional Info
Notes Payable - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jan. 28, 2017 | Jan. 30, 2016 | |
Line of Credit Facility [Line Items] | ||
Outstanding debt under credit facility | $ 0 | $ 0 |
Amended and Restated Loan and Security Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Loan Agreement maturity date | Dec. 31, 2018 | |
Additional credit available under the revolving facility with consent by each lender and other conditions | $ 50,000,000 | |
Interest rate on outstanding borrowing under facility | London Interbank Offered Rate plus 1.50% | |
Percentage of unused Line of Credit Facility Fee | 0.20% | |
Amended and Restated Loan and Security Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Outstanding borrowings interest spread over the London Interbank Offered Rate | 1.50% | |
Amended and Restated Loan and Security Agreement [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 200,000,000 | |
Amended and Restated Loan and Security Agreement [Member] | Subfacility for Standby Letters of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 10,000,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 28, 2017 | Jan. 30, 2016 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan liability | $ 10,474 | $ 7,491 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 28, 2017 | Jan. 30, 2016 |
Investments Schedule [Abstract] | ||
Certificates of deposit | $ 30,000 | $ 130,000 |
Share-based Awards - Additional
Share-based Awards - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Stock Based Awards [Line Items] | |||
Share-based Compensation | $ 19,340 | $ 15,594 | $ 14,923 |
Cash from stock option exercises | $ 16,293 | $ 19,646 | $ 10,639 |
Employee Stock Option [Member] | |||
Stock Based Awards [Line Items] | |||
Number of shares granted | 110 | 294 | 371 |
Aggregate intrinsic value of outstanding options | $ 125,061 | ||
Sale price of our common stock on the NASDAQ Global Select Market | $ 271.44 | ||
Restricted Stock Award [Member] | |||
Stock Based Awards [Line Items] | |||
Vesting period | 3 years | ||
Unrecognized compensation cost | $ 11,920 | ||
Unrecognized compensation expense weighted-average recognition period | 1 year 6 months | ||
Director restricted stock, vesting period | 1 year | ||
Compensation expense | $ 7,295 | $ 6,040 | $ 5,845 |
Restricted stock units issued | 55 | ||
Performance Based Restricted Stock Units [Member] | |||
Stock Based Awards [Line Items] | |||
Vesting period | 3 years | ||
Unrecognized compensation cost | $ 8,610 | ||
Unrecognized compensation expense weighted-average recognition period | 2 years | ||
Compensation expense | $ 4,062 | $ 1,655 | |
Restricted stock units issued | 24 | ||
Performance Based Restricted Stock Units [Member] | |||
Stock Based Awards [Line Items] | |||
Restricted stock units issued | 24 | 22 | |
Performance Based Restricted Stock Units [Member] | Maximum [Member] | |||
Stock Based Awards [Line Items] | |||
Maximum number of units that could vest | 82 | ||
Amended and Restated 2011 Incentive Award Plan [Member] | |||
Stock Based Awards [Line Items] | |||
Issuance upon grant or exercise of awards | 3,912 | ||
Share-based Compensation | $ 19,340 | $ 15,594 | 14,923 |
Cash from stock option exercises | 16,293 | 19,646 | 10,639 |
Total income tax benefit recognized in the income statement for the share-based compensation arrangements | 6,764 | 5,354 | 3,526 |
Actual tax benefit realized for the tax deductions from option exercise and restricted stock vesting | $ 15,868 | $ 14,970 | $ 6,892 |
Amended and Restated 2011 Incentive Award Plan [Member] | Employee Stock Option [Member] | |||
Stock Based Awards [Line Items] | |||
Employee stock options, expiration period | 10 years | ||
Vesting period | 4 years | ||
Employee stock options, vesting rate | 25.00% | ||
Number of shares granted | 110 | ||
Weighted-average fair value of stock option | $ 53.02 | $ 56.44 | $ 32.38 |
Total fair value stock options issued and vested | $ 5,932 | $ 8,236 | $ 8,799 |
Compensation expenses | 7,983 | 7,899 | 9,078 |
Unrecognized compensation cost | $ 19,938 | ||
Unrecognized compensation expense weighted-average recognition period | 3 years | ||
Total intrinsic value of options exercised | $ 27,468 | $ 36,610 | $ 15,032 |
Aggregate intrinsic value of exercisable options | $ 56,533 |
Share-based Awards - Black-Scho
Share-based Awards - Black-Scholes Valuation Model Weighted-Average Assumptions (Detail) | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Volatility rate | 35.00% | 37.90% | 40.70% |
Average risk-free interest rate | 1.20% | 1.60% | 1.40% |
Average expected life (in years) | 3 years 6 months | 4 years 10 months 24 days | 3 years 9 months 18 days |
Dividend yield | 0.00% | 0.00% | 0.00% |
Share-based Awards - Stock Opti
Share-based Awards - Stock Option Activity (Detail) - Employee Stock Option [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock options outstanding number of options, Beginning of year | 939 | 1,073 | 1,090 |
Common stock options outstanding number of options, Granted | 110 | 294 | 371 |
Common stock options outstanding number of options, Exercised | (194) | (356) | (238) |
Common stock options outstanding number of options, Forfeited | (25) | (72) | (150) |
Common stock options outstanding number of options, End of year | 830 | 939 | 1,073 |
Common stock options outstanding number of options, Exercisable at end of year | 280 | 316 | 440 |
Common stock options outstanding number of options, Vested and Expected to vest | 786 | 890 | 1,028 |
Common stock options outstanding weighted-average exercise price, Beginning of year | $ 104.58 | $ 72.12 | $ 56.94 |
Common stock options outstanding weighted-average exercise price, Granted | 193.64 | 160.01 | 99.40 |
Common stock options outstanding weighted-average exercise price, Exercised | 83.88 | 55.20 | 44.79 |
Common stock options outstanding weighted-average exercise price, Forfeited | 118.97 | 91.74 | 72.57 |
Common stock options outstanding weighted-average exercise price, End of year | 120.78 | 104.58 | 72.12 |
Common stock options outstanding weighted-average exercise price, Exercisable at end of year | 69.69 | 61.44 | 43.98 |
Common stock options outstanding weighted-average exercise price, Vested and expected to vest | $ 119.32 | $ 103.36 | $ 71.28 |
Share-based Awards - Summary of
Share-based Awards - Summary of Options Outstanding and Options Exercisable Under Stock Option Plan (Detail) shares in Thousands | 12 Months Ended |
Jan. 28, 2017$ / sharesshares | |
$9.67 - $57.42 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding Weighted-average remaining contractual life (years) | 3 years |
Options exercisable Weighted-average remaining contractual life (years) | 3 years |
Number of options, outstanding | shares | 112 |
Number of options, exercisable | shares | 112 |
Options outstanding, exercise prices lower range limit | $ 9.67 |
Options outstanding, exercise prices upper range limit | 57.42 |
Weighted-average exercise price, options outstanding | 25.13 |
Weighted-average exercise price, options exercisable | $ 25.13 |
$69.96 - $96.81 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding Weighted-average remaining contractual life (years) | 6 years |
Options exercisable Weighted-average remaining contractual life (years) | 6 years |
Number of options, outstanding | shares | 119 |
Number of options, exercisable | shares | 81 |
Options outstanding, exercise prices lower range limit | $ 69.96 |
Options outstanding, exercise prices upper range limit | 96.81 |
Weighted-average exercise price, options outstanding | 82.19 |
Weighted-average exercise price, options exercisable | $ 80.65 |
$97.89 - $99.66 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding Weighted-average remaining contractual life (years) | 7 years |
Options exercisable Weighted-average remaining contractual life (years) | 7 years |
Number of options, outstanding | shares | 153 |
Number of options, exercisable | shares | 36 |
Options outstanding, exercise prices lower range limit | $ 97.89 |
Options outstanding, exercise prices upper range limit | 99.66 |
Weighted-average exercise price, options outstanding | 98.12 |
Weighted-average exercise price, options exercisable | $ 98.08 |
$101.35 - $153.87 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding Weighted-average remaining contractual life (years) | 8 years |
Options exercisable Weighted-average remaining contractual life (years) | 8 years |
Number of options, outstanding | shares | 134 |
Number of options, exercisable | shares | 50 |
Options outstanding, exercise prices lower range limit | $ 101.35 |
Options outstanding, exercise prices upper range limit | 153.87 |
Weighted-average exercise price, options outstanding | 136.78 |
Weighted-average exercise price, options exercisable | $ 129.41 |
$164.06 - $165.27 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding Weighted-average remaining contractual life (years) | 9 years |
Options exercisable Weighted-average remaining contractual life (years) | 9 years |
Number of options, outstanding | shares | 206 |
Number of options, exercisable | shares | 1 |
Options outstanding, exercise prices lower range limit | $ 164.06 |
Options outstanding, exercise prices upper range limit | 165.27 |
Weighted-average exercise price, options outstanding | 164.09 |
Weighted-average exercise price, options exercisable | $ 165.01 |
$191.76 - $249.64 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding Weighted-average remaining contractual life (years) | 9 years |
Options exercisable Weighted-average remaining contractual life (years) | 0 years |
Number of options, outstanding | shares | 106 |
Options outstanding, exercise prices lower range limit | $ 191.76 |
Options outstanding, exercise prices upper range limit | 249.64 |
Weighted-average exercise price, options outstanding | $ 193.70 |
$9.67 - $249.64 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding Weighted-average remaining contractual life (years) | 7 years |
Options exercisable Weighted-average remaining contractual life (years) | 5 years |
Number of options, outstanding | shares | 830 |
Number of options, exercisable | shares | 280 |
Options outstanding, exercise prices lower range limit | $ 9.67 |
Options outstanding, exercise prices upper range limit | 249.64 |
Weighted-average exercise price, options outstanding | 120.78 |
Weighted-average exercise price, options exercisable | $ 69.69 |
Share-based Awards - Restricted
Share-based Awards - Restricted Stock Units Activity (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Restricted Stock [Member] | |||
Schedule Of Restricted Stock Activity [Line Items] | |||
Restricted stock number of units outstanding, Beginning of year | 144 | 151 | 162 |
Restricted stock number of units outstanding, Granted | 55 | 60 | 71 |
Restricted stock number of units outstanding, Vested | (46) | (47) | (52) |
Restricted stock number of units outstanding, Forfeited | (11) | (20) | (30) |
Restricted stock number of units outstanding, End of year | 142 | 144 | 151 |
Restricted stock number of units outstanding, Expected to vest | 131 | 132 | 140 |
Restricted stock units outstanding weighted-average exercise price, Beginning of year | $ 116.42 | $ 91.74 | $ 87.54 |
Restricted stock units outstanding weighted-average exercise price, Granted | 203.40 | 154.77 | 97.73 |
Restricted stock units outstanding Weighted-average Exercise Price, Vested | 98.06 | 102.36 | 91.91 |
Restricted stock units outstanding weighted-average exercise price, Forfeited | 138.25 | 96.11 | 82.91 |
Restricted stock units outstanding weighted- average exercise price, End of year | 154.71 | 116.42 | 91.74 |
Restricted stock units outstanding weighted-average exercise price, Expected to vest | $ 154.71 | $ 116.42 | $ 91.74 |
Performance Based Restricted Stock Units [Member] | |||
Schedule Of Restricted Stock Activity [Line Items] | |||
Restricted stock number of units outstanding, Beginning of year | 20 | ||
Restricted stock number of units outstanding, Granted | 24 | 22 | |
Restricted stock number of units outstanding, Forfeited | (3) | (2) | |
Restricted stock number of units outstanding, End of year | 41 | 20 | |
Restricted stock number of units outstanding, Expected to vest | 38 | 19 | |
Restricted stock units outstanding weighted-average exercise price, Beginning of year | $ 151.20 | ||
Restricted stock units outstanding weighted-average exercise price, Granted | 191.76 | $ 151.20 | |
Restricted stock units outstanding weighted-average exercise price, Forfeited | 167.71 | 151.20 | |
Restricted stock units outstanding weighted- average exercise price, End of year | 173.47 | 151.20 | |
Restricted stock units outstanding weighted-average exercise price, Expected to vest | $ 173.47 | $ 151.20 |
Net Income Per Common Share - N
Net Income Per Common Share - Net Income Per Basic and Diluted Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May 02, 2015 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Numerator for diluted net income per share - net income | $ 140,218 | $ 87,562 | $ 90,004 | $ 91,976 | $ 107,823 | $ 71,070 | $ 74,169 | $ 66,946 | $ 409,760 | $ 320,008 | $ 257,135 |
Denominator for basic net income per share - weighted-average common shares | 62,519 | 63,949 | 64,335 | ||||||||
Dilutive effect of stock options and non-vested stock | 332 | 326 | 316 | ||||||||
Denominator for diluted net income per share | 62,851 | 64,275 | 64,651 | ||||||||
Net income per common share: | |||||||||||
Basic | $ 2.25 | $ 1.40 | $ 1.44 | $ 1.46 | $ 1.69 | $ 1.11 | $ 1.16 | $ 1.04 | $ 6.55 | $ 5 | $ 4 |
Diluted | $ 2.24 | $ 1.40 | $ 1.43 | $ 1.45 | $ 1.69 | $ 1.11 | $ 1.15 | $ 1.04 | $ 6.52 | $ 4.98 | $ 3.98 |
Net Income Per Common Share - A
Net Income Per Common Share - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Employee stock options and restricted stock units excluded from the computation of net income per common share | 142 | 370 | 686 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Retirement Plan [Line Items] | |||
Company match | 100.00% | 100.00% | 100.00% |
401(k) Match on eligible compensation | 3.00% | ||
Company match liability amount | $ 6,317 | $ 5,031 | |
Non Qualified Deferred Compensation Plan [Member] | |||
Retirement Plan [Line Items] | |||
Company match | 100.00% | ||
Company match liability amount | $ 753 | 554 | |
Deferred compensation plan match | 3.00% | ||
Deferred compensation liability included in other long term liability | $ 10,474 | 7,491 | |
Cash value of investments included in deferred compensation plan assets | $ 11,283 | $ 8,145 |
Selected Quarterly Financial 60
Selected Quarterly Financial Data (Unaudited) - Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May 02, 2015 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 1,580,574 | $ 1,131,232 | $ 1,069,215 | $ 1,073,716 | $ 1,268,295 | $ 910,700 | $ 876,999 | $ 868,122 | $ 4,854,737 | $ 3,924,116 | $ 3,241,369 |
Cost of sales | 1,035,666 | 704,179 | 684,377 | 683,286 | 829,259 | 575,062 | 570,524 | 564,938 | 3,107,508 | 2,539,783 | 2,104,582 |
Gross profit | 544,908 | 427,053 | 384,838 | 390,430 | 439,036 | 335,638 | 306,475 | 303,184 | 1,747,229 | 1,384,333 | 1,136,787 |
Selling, general and administrative expenses | 316,266 | 280,464 | 236,380 | 240,724 | 268,169 | 218,763 | 183,937 | 192,485 | 1,073,834 | 863,354 | 712,006 |
Pre-opening expenses | 4,412 | 6,928 | 4,689 | 2,542 | 1,381 | 6,106 | 4,078 | 3,117 | 18,571 | 14,682 | 14,366 |
Operating income | 224,230 | 139,661 | 143,769 | 147,164 | 169,486 | 110,769 | 118,460 | 107,582 | 654,824 | 506,297 | 410,415 |
Interest income, net | (116) | (211) | (248) | (315) | (273) | (283) | (276) | (311) | (890) | (1,143) | (894) |
Income before income taxes | 224,346 | 139,872 | 144,017 | 147,479 | 169,759 | 111,052 | 118,736 | 107,893 | 655,714 | 507,440 | 411,309 |
Income tax expense | 84,128 | 52,310 | 54,013 | 55,503 | 61,936 | 39,982 | 44,567 | 40,947 | 245,954 | 187,432 | 154,174 |
Net income | $ 140,218 | $ 87,562 | $ 90,004 | $ 91,976 | $ 107,823 | $ 71,070 | $ 74,169 | $ 66,946 | $ 409,760 | $ 320,008 | $ 257,135 |
Net income per common share: | |||||||||||
Basic | $ 2.25 | $ 1.40 | $ 1.44 | $ 1.46 | $ 1.69 | $ 1.11 | $ 1.16 | $ 1.04 | $ 6.55 | $ 5 | $ 4 |
Diluted | $ 2.24 | $ 1.40 | $ 1.43 | $ 1.45 | $ 1.69 | $ 1.11 | $ 1.15 | $ 1.04 | $ 6.52 | $ 4.98 | $ 3.98 |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | May 31, 2016 | Mar. 10, 2016 | Mar. 12, 2015 | Sep. 11, 2014 | |
Stock Repurchase Program [Line Items] | |||||||
Repurchase of common stock | $ 344,275,000 | $ 167,396,000 | $ 39,923,000 | ||||
2013 Share Repurchase Program [Member] | |||||||
Stock Repurchase Program [Line Items] | |||||||
Shares authorized but revoked unused amounts | $ 112,664,000 | ||||||
2014 Share Repurchase Program [Member] | |||||||
Stock Repurchase Program [Line Items] | |||||||
Shares authorized but revoked unused amounts | $ 172,386,000 | ||||||
Repurchase of common stock, shares | 1,034,000 | 321,000 | |||||
Repurchase of common stock | $ 167,396,000 | $ 39,923,000 | |||||
Repurchase of common stock, average price per share | $ 161.81 | $ 124.31 | |||||
2014 Share Repurchase Program [Member] | Maximum [Member] | |||||||
Stock Repurchase Program [Line Items] | |||||||
Repurchase of common stock authorized amount | $ 300,000,000 | ||||||
Stock repurchase program, increase in authorized amount | $ 100,000,000 | ||||||
2016 Share Repurchase Program [Member] | |||||||
Stock Repurchase Program [Line Items] | |||||||
Repurchase of common stock authorized amount | 425,000,000 | ||||||
Repurchase of common stock, shares | 634,000 | ||||||
Repurchase of common stock | $ 144,275,000 | ||||||
Repurchase of common stock, average price per share | $ 227.49 | ||||||
Accelerated Share Repurchase [Member] | |||||||
Stock Repurchase Program [Line Items] | |||||||
Repurchase of common stock authorized amount | 200,000,000 | ||||||
Share repurchase, initial payment | $ 200,000,000 | ||||||
Share Repurchase, Shares Delivered | 153,000 | 852,000 | |||||
Stock repurchase, percentage of initial shares received from expected shares | 80.00% |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) | Mar. 09, 2017USD ($) |
2017 Share Repurchase Program [Member] | Subsequent Event [Member] | Maximum [Member] | |
Subsequent Event [Line Items] | |
Repurchase of common stock authorized amount | $ 425,000,000 |
Schedule II - Valuation and Q63
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 1,112 | $ 1,346 | $ 915 |
Charged to costs and expenses | 1,709 | 2,063 | 874 |
Deductions | (742) | (2,297) | (443) |
Balance at end of period | 2,079 | 1,112 | 1,346 |
Shrink Reserve [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 15,259 | 11,598 | 9,358 |
Charged to costs and expenses | 35,505 | 29,894 | 22,374 |
Deductions | (31,699) | (26,233) | (20,134) |
Balance at end of period | 19,065 | 15,259 | 11,598 |
Inventory - Lower of Cost or Market Reserve [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 5,003 | 5,253 | 4,861 |
Charged to costs and expenses | 10,691 | 3,323 | 4,368 |
Deductions | (7,120) | (3,573) | (3,976) |
Balance at end of period | 8,574 | 5,003 | 5,253 |
Insurance: Workers Comp / General Liability Prepaid Asset [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | (1,926) | (1,789) | (1,817) |
Charged to costs and expenses | 9,578 | 5,935 | 6,899 |
Deductions | (7,751) | (6,072) | (6,871) |
Balance at end of period | (99) | (1,926) | (1,789) |
Insurance: Employee Health Care Accrued Liability [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 4,187 | 2,435 | 2,606 |
Charged to costs and expenses | 67,715 | 55,423 | 41,335 |
Deductions | (64,705) | (53,671) | (41,506) |
Balance at end of period | $ 7,197 | $ 4,187 | $ 2,435 |