Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 29, 2022 | Mar. 21, 2022 | Jul. 30, 2021 | |
Cover [Abstract] | |||
Auditor Location | Chicago, Illinois | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Entity Registrant Name | ULTA BEAUTY, INC. | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Central Index Key | 0001403568 | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 29, 2022 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --01-29 | ||
Entity File Number | 001-33764 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 38-4022268 | ||
Entity Address, Address Line One | 1000 Remington Blvd. | ||
Entity Address, Address Line Two | Suite 120 | ||
Entity Address, City or Town | Bolingbrook | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60440 | ||
City Area Code | 630 | ||
Local Phone Number | 410-4800 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 13,829,733,000 | ||
Entity Common Stock, Shares Outstanding | 52,327,263 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ULTA |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 431,560 | $ 1,046,051 |
Receivables, net | 233,682 | 193,109 |
Merchandise inventories, net | 1,499,218 | 1,168,215 |
Prepaid expenses and other current assets | 110,814 | 107,402 |
Prepaid income taxes | 5,909 | |
Total current assets | 2,281,183 | 2,514,777 |
Property and equipment, net | 914,476 | 995,795 |
Operating lease assets | 1,482,256 | 1,504,614 |
Goodwill | 10,870 | 10,870 |
Other intangible assets, net | 1,538 | 2,465 |
Deferred compensation plan assets | 38,409 | 33,223 |
Other long-term assets | 35,647 | 28,225 |
Total assets | 4,764,379 | 5,089,969 |
Current liabilities: | ||
Accounts payable | 552,730 | 477,052 |
Accrued liabilities | 364,797 | 296,334 |
Deferred revenue | 353,579 | 274,383 |
Current operating lease liabilities | 274,118 | 253,415 |
Accrued income taxes | 12,786 | 42,529 |
Total current liabilities | 1,558,010 | 1,343,713 |
Non-current operating lease liabilities | 1,572,638 | 1,643,386 |
Deferred income taxes | 39,693 | 65,359 |
Other long-term liabilities | 58,665 | 37,962 |
Total liabilities | 3,229,006 | 3,090,420 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
Common stock, $0.01 par value, 400,000 shares authorized; 53,049 and 56,952 shares issued; 52,311 and 56,260 shares outstanding; at January 29, 2022 and January 30, 2021, respectively | 530 | 569 |
Treasury stock-common, at cost | (53,478) | (37,801) |
Additional paid-in capital | 934,945 | 847,303 |
Retained earnings | 653,376 | 1,189,422 |
Accumulated other comprehensive income | 56 | |
Total stockholders' equity | 1,535,373 | 1,999,549 |
Total liabilities and stockholders' equity | $ 4,764,379 | $ 5,089,969 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Consolidated Balance Sheets | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000 | 400,000 |
Common stock, shares issued | 53,049 | 56,952 |
Common stock, shares outstanding | 52,311 | 56,260 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Consolidated Statements of Income | |||
Net sales | $ 8,630,889 | $ 6,151,953 | $ 7,398,068 |
Cost of sales | 5,262,335 | 4,202,794 | 4,717,004 |
Gross profit | 3,368,554 | 1,949,159 | 2,681,064 |
Selling, general and administrative expenses | 2,061,545 | 1,583,017 | 1,760,716 |
Impairment, restructuring and other costs | 114,322 | ||
Pre-opening expenses | 9,517 | 15,000 | 19,254 |
Operating income | 1,297,492 | 236,820 | 901,094 |
Interest expense (income), net | 1,663 | 5,735 | (5,056) |
Income before income taxes | 1,295,829 | 231,085 | 906,150 |
Income tax expense | 309,992 | 55,250 | 200,205 |
Net income | $ 985,837 | $ 175,835 | $ 705,945 |
Net income per common share: | |||
Basic | $ 18.09 | $ 3.12 | $ 12.21 |
Diluted | $ 17.98 | $ 3.11 | $ 12.15 |
Weighted average common shares outstanding: | |||
Basic | 54,482 | 56,351 | 57,840 |
Diluted | 54,841 | 56,558 | 58,105 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 985,837 | $ 175,835 | $ 705,945 |
Other comprehensive income: | |||
Foreign currency translation adjustments | (56) | 56 | |
Comprehensive income | $ 985,781 | $ 175,891 | $ 705,945 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Operating activities | |||
Net income | $ 985,837 | $ 175,835 | $ 705,945 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 268,460 | 297,772 | 295,599 |
Non-cash lease expense | 276,229 | 268,071 | 278,820 |
Long-lived asset impairment charge | 72,533 | ||
Deferred income taxes | (25,666) | (24,008) | 5,503 |
Stock-based compensation expense | 47,259 | 27,583 | 25,045 |
Loss on disposal of property and equipment | 5,358 | 6,827 | 5,850 |
Change in operating assets and liabilities: | |||
Receivables | (40,573) | (53,772) | (20,637) |
Merchandise inventories | (331,003) | 125,486 | (79,372) |
Prepaid expenses and other current assets | (3,412) | (4,363) | 9,289 |
Income taxes | (35,652) | 58,916 | 610 |
Accounts payable | 66,156 | 62,324 | 9,993 |
Accrued liabilities | 58,598 | 58,599 | 28,183 |
Deferred revenue | 79,196 | 36,848 | 38,481 |
Operating lease liabilities | (303,914) | (297,513) | (256,910) |
Other assets and liabilities | 12,392 | (783) | 54,894 |
Net cash provided by operating activities | 1,059,265 | 810,355 | 1,101,293 |
Investing activities | |||
Purchases of short-term investments | (110,000) | ||
Proceeds from short-term investments | 110,000 | ||
Capital expenditures | (172,187) | (151,866) | (298,534) |
Acquisitions, net of cash acquired | (1,220) | ||
Other investments | (4,297) | (5,665) | (62,946) |
Net cash used in investing activities | (176,484) | (48,751) | (471,480) |
Financing activities | |||
Proceeds from long-term debt | 800,000 | ||
Payments on long-term debt | (800,000) | ||
Repurchase of common shares | (1,521,925) | (114,895) | (680,979) |
Stock options exercised | 40,386 | 12,229 | 43,780 |
Purchase of treasury shares | (15,677) | (3,353) | (9,540) |
Debt issuance costs | (1,915) | ||
Net cash used in financing activities | (1,497,216) | (107,934) | (646,739) |
Effect of exchange rate changes on cash and cash equivalents | (56) | 56 | |
Net increase (decrease) in cash and cash equivalents | (614,491) | 653,726 | (16,926) |
Cash and cash equivalents at beginning of year | 1,046,051 | 392,325 | 409,251 |
Cash and cash equivalents at end of year | 431,560 | 1,046,051 | 392,325 |
Supplemental information | |||
Cash paid for interest | 2,132 | 6,987 | |
Income taxes paid, net of refunds | 370,646 | 19,454 | 133,861 |
Non-cash capital expenditures | $ 39,874 | $ 20,487 | $ 26,901 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock | Treasury - Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total |
Balance at Feb. 02, 2019 | $ 592 | $ (24,908) | $ 738,671 | $ 1,105,863 | $ 1,820,218 | |
Balance (in shares) at Feb. 02, 2019 | 59,232 | (648) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 705,945 | 705,945 | ||||
Stock-based compensation | 25,045 | 25,045 | ||||
Adoption of accounting standards | ASU 2016-02, Leases (Topic 842) | (2,375) | (2,375) | ||||
Stock options exercised and other awards | $ 4 | 43,776 | 43,780 | |||
Stock options exercised and other awards (in shares) | 374 | |||||
Purchase of treasury shares | $ (9,540) | (9,540) | ||||
Purchase of treasury shares (in shares) | (28) | |||||
Repurchase of common shares | $ (23) | (680,956) | $ (680,979) | |||
Repurchase of common shares (in shares) | (2,321) | (2,321) | ||||
Balance at Feb. 01, 2020 | $ 573 | $ (34,448) | 807,492 | 1,128,477 | $ 1,902,094 | |
Balance (in shares) at Feb. 01, 2020 | 57,285 | (676) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 175,835 | 175,835 | ||||
Stock-based compensation | 27,583 | 27,583 | ||||
Foreign currency translation adjustments | $ 56 | 56 | ||||
Stock options exercised and other awards | $ 1 | 12,228 | 12,229 | |||
Stock options exercised and other awards (in shares) | 142 | |||||
Purchase of treasury shares | $ (3,353) | (3,353) | ||||
Purchase of treasury shares (in shares) | (16) | |||||
Repurchase of common shares | $ (5) | (114,890) | $ (114,895) | |||
Repurchase of common shares (in shares) | (475) | (475) | ||||
Balance at Jan. 30, 2021 | $ 569 | $ (37,801) | 847,303 | 1,189,422 | 56 | $ 1,999,549 |
Balance (in shares) at Jan. 30, 2021 | 56,952 | (692) | 56,260 | |||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 985,837 | $ 985,837 | ||||
Stock-based compensation | 47,259 | 47,259 | ||||
Foreign currency translation adjustments | $ (56) | (56) | ||||
Stock options exercised and other awards | $ 3 | 40,383 | 40,386 | |||
Stock options exercised and other awards (in shares) | 347 | |||||
Purchase of treasury shares | $ (15,677) | (15,677) | ||||
Purchase of treasury shares (in shares) | (46) | |||||
Repurchase of common shares | $ (42) | (1,521,883) | $ (1,521,925) | |||
Repurchase of common shares (in shares) | (4,250) | (4,250) | ||||
Balance at Jan. 29, 2022 | $ 530 | $ (53,478) | $ 934,945 | $ 653,376 | $ 1,535,373 | |
Balance (in shares) at Jan. 29, 2022 | 53,049 | (738) | 52,311 |
Business and basis of presentat
Business and basis of presentation | 12 Months Ended |
Jan. 29, 2022 | |
Business and basis of presentation | |
Business and basis of presentation | 1. Business and basis of presentation Ulta Beauty, Inc. was founded in 1990 As of January 29, 2022, the Company operated 1,308 stores across 50 states. The Company has one reportable segment, which includes retail stores, salon services, and e-commerce. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Jan. 29, 2022 | |
Summary of significant accounting policies | |
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 29, 2022 (fiscal 2021), January 30, 2021 (fiscal 2020), and February 1, 2020 (fiscal 2019) 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 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. The Company considers its accounting policies relating to inventory valuations, vendor allowances, impairment of long-lived tangible and right-of-use assets, loyalty program and income taxes to be the most significant accounting policies that involve management estimates and judgments. Significant changes, if any, in those estimates and assumptions resulting from continuing changes in the economic environment, including those related to the impacts of the COVID-19 pandemic, will be reflected in the consolidated financial statements in future periods. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. Cash and cash equivalents Cash equivalents include highly liquid investments such as money market funds and certificates of deposit with an original maturity of three months or less from the date of purchase. Cash equivalents also include amounts due from third-party financial institutions for credit card and debit card transactions. These receivables typically settle in five days or less with little or no default risk. January 29, January 30, (In thousands) 2022 2021 Cash $ 165,122 $ 887,299 Short-term investments 199,939 99,986 Receivables from third-party financial institutions for credit card and debit card transactions 66,499 58,766 Cash and cash equivalents $ 431,560 $ 1,046,051 Fair value of financial instruments The carrying value of cash and cash equivalents, accounts receivable, and accounts payable approximates fair value due to the short maturities of these instruments. There was no outstanding debt as of January 29, 2022 and January 30, 2021. Receivables Receivables primarily include amounts due from vendors for allowances, amounts related to the employee retention credit (ERC), and amounts due from third-party gift card providers. 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 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. January 29, January 30, (In thousands) 2022 2021 Vendor allowances $ 114,853 $ 90,271 Employee retention credit (1) 56,426 52,405 Gift card 34,655 27,020 Other 28,753 24,181 Allowance for doubtful accounts (1,005) (768) Receivables, net $ 233,682 $ 193,109 (1) During the fiscal years ended January 29, 2022 and January 30, 2021, the Company qualified for various relief measures resulting from the Coronavirus Aid, Relief and Economic Security (CARES) Act, including the ERC which allowed for a refundable tax credit against certain employment taxes on qualified wages. During the fiscal years ended January 29, 2022 and January 30, 2021, there was $4,021 and $52,405, respectively, related to the ERC recognized as a reduction of the associated costs within selling, general and administrative expenses on the consolidated statements of income . Vendor allowances The Company receives consideration from vendors for advertising, markdown allowances, purchase volume discounts and rebates, 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 recognized in cost of sales as the product is sold. Merchandise inventories Merchandise inventories are stated at the lower of cost or net realizable value. Cost is determined using the moving 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 an inventory reserve for lower of cost or net realizable value and shrink. The inventory reserve was $26,882 and $52,860 as of January 29, 2022 and January 30, 2021, respectively. Property and equipment and internal use software Property and equipment is stated at cost, net of accumulated depreciation, and depreciated using the straight-line method over the shorter of the assets’ estimated useful lives or lease term. Leasehold improvements purchased after the beginning of the initial lease term are amortized over the shorter of the assets’ useful lives or a term that includes the original lease term, plus any renewals that are reasonably certain at the date the leasehold improvements are acquired. Repair and maintenance costs are expensed as incurred. Equipment and fixtures 1 to 10 years Electronic equipment and software 3 to 5 years Costs incurred to obtain or develop internal use software that are capitalized are amortized on a straight-line basis over the estimated useful life of the software. Cloud computing arrangements (software-as-a-service contracts) and related implementation costs that are capitalized are amortized on a straight-line basis over the contract term ( 1 month to 5 years ). These amounts are classified within prepaid expenses and other current assets and other long-term assets in the consolidated balance sheets. Impairment of long-lived tangible and right-of-use assets The asset group is defined as the lowest level for which identifiable cash flows are available and largely independent of the cash flows of other groups of assets. The asset group identified is at the store level and includes both property and equipment and operating lease assets. Significant estimates are used in determining future cash flows of each store over its remaining lease term including our expectations of future projected cash flows including revenues and operating expenses. An impairment loss is recorded if the carrying amount of the long-lived asset exceeds its fair value. Long-lived tangible and right-of-use assets are evaluated for indicators of impairment quarterly or when events or changes in circumstances indicate that their carrying amounts may not be recoverable. An undiscounted cash flow analysis is performed over the asset group. Asset groups are written down only to the extent that their carrying value exceeds their respective fair value. Fair values of the asset group are determined by discounting the cash flows at a rate that approximates the cost of capital of a market participant. Management’s forecast of future cash flows is based on the income approach. The fair value of individual right-of-use assets is determined under the market approach using estimated market rent assessments based on broker quotes. The determination of fair value under the income approach requires assumptions including forecasts of future cash flows (such as revenue growth rates and operating expenses) and selection of a market-based discount rate. Estimates of market rent are based on non-binding broker quotes. As these inputs are unobservable, they are classified as Level 3 inputs under the fair value hierarchy (see Note 13, “Fair value measurements”). If actual results are not consistent with estimates and assumptions used in estimating future cash flows and asset fair values, there may be exposure to additional impairment losses in a future period (see Note 4, “Impairment, restructuring and other costs”). Goodwill Goodwill represents the excess of cost over the fair value of net assets acquired. The recoverability of goodwill is reviewed annually during the fourth quarter or more frequently if an event occurs or circumstances change that would indicate that impairment may exist (see Note 6, “Goodwill”). Other intangible assets Other definite-lived intangible assets are amortized over their useful lives. The recoverability of intangible assets is reviewed whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable (see Note 7, “Other intangible assets”). Leases The Company determines whether an arrangement is or contains a lease at contract inception. The lease classification evaluation begins at the lease commencement date. The lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain. Total rent payable is recorded during the lease term, including rent escalations in which the amount of future rent is fixed on the straight-line basis over the term of the lease (including the rent holiday period beginning upon control of the premises and any fixed payments stated in the lease). For leases with an initial term greater than 12 months, a related lease liability is recorded on the balance sheet at the present value of future payments discounted at the estimated fully collateralized incremental borrowing rate (discount rate) corresponding with the lease term. In addition, a right-of-use asset is recorded as the initial amount of the lease liability, plus any lease payments made to the lessor before or at the lease commencement date and any initial direct costs incurred, less any tenant improvement allowance incentives received. Tenant incentives are amortized through the right-of-use asset as reduction of rent expense over the lease term. The difference between the minimum rents paid and the straight-line rent is reflected within the right-of-use asset. Certain leases contain provisions that require variable payments based upon sales volume or payment of common area maintenance costs, real estate taxes, and insurance related to leases . This results in some variability in lease expense as a percentage of revenues over the term of the lease in stores where variable lease costs are paid. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the balance sheet. Short-term lease expense is recognized on a straight-line basis over the lease term. The Company subleases certain real estate to third parties for stores with excess square footage space. The Company does not separate lease and non-lease components (e.g., common area maintenance). As the interest rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate corresponding with the lease term. As there are no outstanding borrowings under the Company’s credit facility, this rate is estimated based on prevailing market conditions, comparable company and credit analysis, and judgment. The incremental borrowing rate is reassessed if there is a change to the lease term or if a modification occurs and it is not accounted for as a separate contract (see Note 8, “Leases”). Loyalty program The Company maintains a loyalty program, Ultamate Rewards, which allows members to earn points based on purchases of merchandise or services. Points earned are valid for at least one year Credit cards The Company has agreements (the Agreements) with third parties to provide guests with private label credit cards and/or co-branded credit cards (collectively, the Credit Cards). The private label credit card can be used at any store location 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’s performance obligation is to maintain the Ultamate Rewards loyalty program as only guests enrolled in the loyalty program can apply for the Credit Cards. Loyalty members earn points through purchases at Ulta Beauty and anywhere the co-branded credit card is accepted, including Ulta Beauty at Target. The third parties reimburse the Company for certain credit card program costs such as advertising and loyalty points, which help promote the credit card program. The Company recognizes revenue when collectability is reasonably assured, under the assumption the amounts are not constrained and it is probable that a significant revenue reversal will not occur in future periods, which is generally the time at which the actual usage of the Credit Cards or specified transaction occurs. The Company accounts for the amounts associated with the Agreements as a single contract with the sole commercial objective to maintain the Credit Card programs. As a result, all amounts associated with the Agreements are recognized within net sales on the consolidated statements of income. Gift card program The Company records a contract liability for gift card sales which will be redeemed in the future within deferred revenue on the consolidated balance sheets and recognized in net sales when the gift card is redeemed for product or services. Gift cards do not expire and do not include service fees that decrease guest balances. The Company maintains historical data related to gift card transactions sold and redeemed over a significant time frame. Gift card breakage (amounts not expected to be redeemed) is recognized to the extent there is no requirement for remitting balances to governmental agencies under unclaimed property laws. Estimated gift card breakage revenue is recognized over time in proportion to actual gift card redemptions. Gift card breakage revenue was $15,266, $11,717, and $12,448 in fiscal 2021, 2020, and 2019, respectively. Revenue recognition Revenue is recognized when control of the promised goods or services is transferred to the guest, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a guest; ● Identification of the performance obligations in the contract; ● Determination of the transaction price; ● Allocation of the transaction price to the performance obligations in the contract; and ● Recognition of revenue when, or as, a performance obligation is satisfied. Net sales include retail stores and e-commerce merchandise sales as well as salon services and other revenue. Revenue from merchandise sales at retail stores is recognized at the point of sale, net of estimated returns. Revenue from e-commerce merchandise sales is recognized upon shipment to the guest or guest pickup of the merchandise based on meeting the transfer of control criteria, net of estimated returns. Salon services revenue is recognized at the time the service is provided to the guest. Shipping and handling are treated as costs to fulfill the contract and not a separate performance obligation. Accordingly, the Company recognizes revenue for its single performance obligation related to e-commerce sales at the time control of the merchandise passes to the customer, which is at the time of shipment or guest pickup. The Company provides refunds for merchandise returns within 60 days from the original purchase date. 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. Company coupons and other incentives are recorded as a reduction of net sales. Advertising Advertising costs primarily consist of print, digital and social media, and television and radio advertising. Costs related to advertising are expensed in the period the related promotional event occurs. Fiscal year ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Advertising expense $ 387,794 $ 281,573 $ 317,865 Advertising expense as a percentage of net sales 4.5% 4.6% 4.3% Prepaid advertising costs included in prepaid expenses and other current assets on the consolidated balance sheets were $7,612 and $7,112 as of January 29, 2022 and January 30, 2021, respectively. Pre-opening expenses Non-capital expenditures incurred prior to the grand opening of a new, remodeled, or relocated store are expensed as incurred. Cost of sales Cost of sales includes the cost of merchandise sold, including substantially all vendor allowances, which are treated as a reduction of merchandise costs; distribution costs including labor and related benefits, freight, rent, depreciation and amortization, real estate taxes, utilities, and insurance; shipping and handling costs; retail stores occupancy costs including rent, depreciation and amortization, real estate taxes, utilities, repairs and maintenance, insurance, and licenses; salon services payroll and benefits; and shrink and inventory valuation reserves. Selling, general and administrative expenses Selling, general and administrative (SG&A) expenses includes payroll, bonus, and benefit costs for retail and corporate employees; advertising and marketing costs; occupancy costs related to our corporate office facilities; stock-based compensation expense; depreciation and amortization for all assets, except those related to our retail store and distribution 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 financial statement carrying amounts of assets and liabilities and their tax bases. 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 in the consolidated statements of income (see Note 11, “Income taxes”). Stock-based compensation Stock-based compensation expense is measured at grant date, based on the fair value of the award, and is recognized on a straight-line basis over the requisite service period for awards expected to vest. Stock-based compensation expense was $47,259, $27,583, and $25,642 in fiscal 2021, 2020, and 2019, respectively (see Note 15, “Stock-based compensation”). 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 $400 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. UB Insurance, Inc., an Arizona-based wholly owned captive insurance subsidiary of the Company, charges the operating subsidiaries of the Company premiums to insure certain liability exposures. Pursuant to Arizona insurance regulations, UB Insurance, Inc. maintains certain levels of cash and cash equivalents related to its liability exposures. 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 common share includes dilutive common stock equivalents, using the treasury stock method (see Note 16, “Net income per common share”). Recently adopted accounting pronouncements Taxes – Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. In December 2019, the Financial Accounting Standards Board (FASB) issued (ASU) 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes. The guidance removes certain exceptions for recognizing deferred taxes for equity method investments, performing intraperiod allocation, and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for goodwill and allocating taxes to members of a consolidated group, among others. This guidance is effective after December 15, 2020. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The transition requirements are dependent upon each amendment within this update and will be applied either prospectively or retrospectively. The Company adopted the new guidance as of January 31, 2021, and its adoption had no impact on the Company’s consolidated financial position, results of operations, or cash flows. |
Revenue
Revenue | 12 Months Ended |
Jan. 29, 2022 | |
Revenue | |
Revenue | 3. Revenue Net sales include retail stores and e-commerce merchandise sales as well as salon services and other revenue. Other revenue sources include the private label and co-branded credit card programs and royalties derived from the partnership with Target, as well as deferred revenue related to the loyalty program and gift card breakage. Disaggregated revenue The following table sets forth the approximate percentage of net sales by primary category: Fiscal year ended January 29, January 30, February 1, (Percentage of net sales) 2022 2021 2020 Cosmetics (1) 43% 45% 51% Haircare products and styling tools (1) 20% 20% 18% Skincare (1) 17% 16% 14% Fragrance and bath 14% 12% 9% Services 3% 3% 5% Accessories and other (1) 3% 4% 3% 100% 100% 100% (1) Certain sales departments were reclassified between categories in the prior year to conform to current year presentation . Deferred revenue Deferred revenue primarily represents contract liabilities for the Company’s obligation to transfer additional goods or services to a guest for which the Company has received consideration, such as unredeemed Ultamate Rewards loyalty points and unredeemed Ulta Beauty gift cards. In addition, breakage on gift cards is recognized proportionately as redemption occurs. The following table provides a summary of the changes included in deferred revenue during fiscal 2021 and 2020: January 29, January 30, (In thousands) 2022 2021 Beginning balance $ 269,032 $ 230,011 Additions to contract liabilities (1) 261,139 200,267 Deductions to contract liabilities (2) (184,965) (161,246) Ending balance $ 345,206 $ 269,032 (1) Loyalty points and gift cards issued in the current period but not redeemed or expired. (2) Revenue recognized in the current period related to the beginning liability. Other amounts included in deferred revenue were $8,373 and $5,351 at January 29, 2022 and January 30, 2021, respectively. |
Impairment, restructuring and o
Impairment, restructuring and other costs | 12 Months Ended |
Jan. 29, 2022 | |
Impairment, restructuring and other costs | |
Impairment, restructuring and other costs | 4. Impairment, restructuring and other costs The following table provides a summary of the impairment, restructuring and other costs during fiscal 2020: Fiscal year ended January 30, (In thousands) 2021 Impairment of long-lived tangible and right-of-use assets $ 41,948 Store closures Impairment of long-lived tangible and right-of-use assets (1) 19,569 Lease termination costs 7,443 Severance (2) 489 Total store closures 27,501 Suspension of Canadian expansion Impairment of long-lived tangible and right-of-use assets (1) 11,016 Lease termination costs 17,388 Severance (2) 717 Total suspension of Canadian expansion 29,121 Other severance (2) 15,752 Total (3) $ 114,322 (1) Amount included in the non-cash $72,533 long-lived asset impairment charge on the consolidated statements of cash flows for the fiscal year ended January 30, 2021. (2) As of January 30, 2021, there was $9,476 in accrued liabilities on the consolidated balance sheets for restructuring and was primarily for severance. There was no liability for restructuring as of January 29, 2022. (3) There were no impairment, restructuring and other costs recognized during fiscal 2021 or fiscal 2019. Impairment of long-lived tangible and right-of-use assets. Store closures. Suspension of Canadian expansion. pandemic, in September 2020 the Company decided to prioritize growth of its U.S. operations and suspended its planned expansion to Canada. Investments to support the expansion into Canada were limited to early-stage infrastructure buildout and lease obligations for a small number of stores. Impairment, restructuring and other costs related to suspension of the Canada expansion were recognized in fiscal 2020. Other severance. |
Property and equipment and inte
Property and equipment and internal use software | 12 Months Ended |
Jan. 29, 2022 | |
Property and equipment and internal use software | |
Property and equipment and internal use software | 5. Property and equipment and internal use software Property and equipment Property and equipment consists of the following: January 29, January 30, (In thousands) 2022 2021 Equipment and fixtures $ 1,118,312 $ 1,083,509 Leasehold improvements 813,068 782,036 Electronic equipment and software 609,734 649,603 Construction-in-progress 91,897 52,668 2,633,011 2,567,816 Less: accumulated depreciation and amortization (1,718,535) (1,572,021) Property and equipment, net $ 914,476 $ 995,795 Internal use software As of January 29, 2022, capitalized costs related to cloud computing arrangements of $23,379 was classified as prepaid expenses and other current assets and $22,596 was classified as other long-term assets in the consolidated balance sheets. As of January 30, 2021, capitalized costs related to cloud computing arrangements of $18,773 was classified as prepaid expenses and other current assets and $16,694 was classified as other long-term assets in the consolidated balance sheets. Expense related to cloud computing arrangements was $62,215, $49,615, and $38,034 in fiscal 2021, fiscal 2020, and fiscal 2019, respectively, and was included in SG&A expenses in the consolidated statements of income. |
Goodwill
Goodwill | 12 Months Ended |
Jan. 29, 2022 | |
Goodwill | |
Goodwill | 6. Goodwill The changes in the carrying amounts of goodwill during the fiscal 2021 and 2020 are as follows: January 29, January 30, (In thousands) 2022 2021 Balance at beginning of the period $ 10,870 $ 10,870 Acquisitions — — Balance at the end of the period $ 10,870 $ 10,870 |
Other intangible assets
Other intangible assets | 12 Months Ended |
Jan. 29, 2022 | |
Other intangible assets | |
Other intangible assets | 7. Other intangible assets Other intangible assets subject to amortization consists of the following: January 29, 2022 January 30, 2021 Weighted-average Gross Gross remaining useful carrying Accumulated carrying Accumulated (In thousands) life in years value amortization Net value amortization Net Developed technology 1.7 $ 4,631 $ (3,093) $ 1,538 $ 4,631 $ (2,166) $ 2,465 Amortization expense related to intangible assets was $926 in fiscal 2021, fiscal 2020, and fiscal 2019. Estimated amortization expense related to intangible assets for the next five years and thereafter is as follows: Estimated amortization expense Fiscal year (In thousands) 2022 $ 926 2023 612 2024 — 2025 — 2026 — 2027 and thereafter — $ 1,538 |
Leases
Leases | 12 Months Ended |
Jan. 29, 2022 | |
Leases | |
Leases | 8. Leases The Company leases retail stores, distribution centers, fast fulfillment centers, corporate offices, and certain equipment under non-cancelable operating leases with various expiration dates through 2033. All leases are classified as operating leases and generally have initial lease terms of 10 years and when determined applicable, include renewal options under substantially the same terms and conditions as the original leases. Leases do not contain any material residual value guarantees or material restrictive covenants. The following table presents supplemental balance sheet information, the weighted-average remaining lease term, and discount rate for operating leases: January 29, January 30, (In thousands) Classification on the Balance Sheet 2022 2021 Right-of-use assets Operating lease assets $ 1,482,256 $ 1,504,614 Current lease liabilities Current operating lease liabilities $ 274,118 $ 253,415 Non-current lease liabilities Non-current operating lease liabilities 1,572,638 1,643,386 Total lease liabilities $ 1,846,756 $ 1,896,801 Weighted-average remaining lease term 6.6 6.9 Weighted-average discount rate 3.3% 3.6% Lease cost The following table presents the components of lease cost for operating leases: Fiscal Year Ended January 29, January 30, February 1, (In thousands) Classification on the Statement of Income 2022 2021 2020 Operating lease cost Cost of sales (1) $ 311,546 $ 304,743 $ 289,007 Variable lease cost Cost of sales 77,431 80,557 77,142 Short-term lease cost Selling, general and administrative expenses 408 567 352 Sublease income Net sales (835) (827) (691) Total lease cost $ 388,550 $ 385,040 $ 365,810 (1) The majority of operating lease cost relates to retail stores, distribution centers, and fast fulfillment centers and is classified within cost of sales. Operating lease cost for corporate offices is classified within the selling, general and administrative expenses. Operating lease cost from the control date through store opening date is classified within pre-opening expenses. Other information The following table presents supplemental disclosures of cash flow information related to operating leases: Fiscal Year Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Cash paid for operating lease liabilities (1) $ 368,498 $ 354,133 $ 338,942 Operating lease assets obtained in exchange for operating lease liabilities (non-cash) 253,870 255,966 355,286 (1) Excludes $28,591, $33,092, and $71,294 related to cash received for tenant incentives as of January 29, 2022, January 30, 2021, and February 1, 2020, respectively. Maturity of lease liabilities The following table presents maturities of operating lease liabilities: Fiscal year (In thousands) 2022 $ 330,260 2023 349,856 2024 318,507 2025 289,025 2026 250,945 2027 and thereafter 517,798 Total lease payments $ 2,056,391 Less: imputed interest (209,635) Present value of operating lease liabilities $ 1,846,756 Operating lease payments exclude $73,646 of legally binding minimum lease payments for leases signed but not yet commenced. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Jan. 29, 2022 | |
Commitments and contingencies | |
Commitments and contingencies | 9. Commitments and contingencies Contractual obligations as of January 29, 2022. General litigation – |
Accrued liabilities
Accrued liabilities | 12 Months Ended |
Jan. 29, 2022 | |
Accrued liabilities | |
Accrued liabilities | 10 . Accrued liabilities Accrued liabilities consist of the following: January 29, January 30, (In thousands) 2022 2021 Accrued payroll, bonus, and employee benefits (1) $ 158,017 $ 143,992 Accrued advertising 49,477 23,543 Accrued taxes 43,464 36,787 Other accrued liabilities 113,839 92,012 Accrued liabilities $ 364,797 $ 296,334 (1) Includes $43,845 in social security tax payments deferred related to the CARES Act as of January 30, 2021. There was no deferral related to the CARES Act as of January 29, 2022 . |
Income taxes
Income taxes | 12 Months Ended |
Jan. 29, 2022 | |
Income Taxes | |
Income taxes | 11. Income taxes The provision for income taxes consists of the following: Fiscal year ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Current: Federal $ 280,300 $ 67,724 $ 163,596 State 55,358 11,534 31,106 Total current 335,658 79,258 194,702 Deferred: Federal (22,936) (19,631) 1,182 State (2,730) (4,377) 4,321 Total deferred (25,666) (24,008) 5,503 Provision for income taxes $ 309,992 $ 55,250 $ 200,205 A reconciliation of the federal statutory rate to the Company’s effective tax rate is as follows: Fiscal year ended January 29, January 30, February 1, 2022 2021 2020 Federal statutory rate 21.0% 21.0% 21.0% State effective rate, net of federal tax benefit 3.3% 2.9% 3.1% Executive compensation limitation 0.5% 1.2% 0.2% Excess deduction of stock compensation (0.5%) (0.3%) (1.1%) Other (0.4%) (0.9%) (1.1%) Effective tax rate 23.9% 23.9% 22.1% Significant components of deferred tax assets and liabilities are as follows: January 29, January 30, (In thousands) 2022 2021 Deferred tax assets: Operating lease liability $ 471,687 $ 484,780 Reserves not currently deductible 47,059 32,590 Accrued liabilities 33,289 31,056 Employee benefits 24,355 23,687 Property and equipment 1,710 — Credit carryforwards 334 291 NOL carryforwards 303 255 Inventory valuation — 8,386 Total deferred tax assets 578,737 581,045 Deferred tax liabilities: Operating lease asset 561,137 561,605 Prepaid expenses 45,815 46,013 Receivables not currently includable 5,398 3,720 Inventory valuation 3,490 — Other 2,224 1,669 Intangibles 366 585 Property and equipment — 32,812 Total deferred tax liabilities 618,430 646,404 Net deferred tax liability $ (39,693) $ (65,359) At January 29, 2022, the Company had $423 of credit carryforwards for state income tax purposes that expire between 2022 and 2025. The Company also had $95 of state net operating loss (NOL) carryforwards that expire by 2040 and $825 of federal and $163 of state NOL carryforwards that do not expire. The Company accounts for uncertainty in income taxes in accordance with Accounting Standards Codification 740-10. The reserve for uncertain tax positions was $3,389 and $2,783 at January 29, 2022 and January 30, 2021, respectively, which represents the best estimate of the potential liability. A reconciliation of unrecognized tax benefits, excluding interest and penalties, is as follows: January 29, January 30, (In thousands) 2022 2021 Balance at beginning of the year $ 2,783 $ 3,536 Increase due to a prior year tax position 1,219 224 Decrease due to a prior year tax position (613) (977) Balance at end of the year $ 3,389 $ 2,783 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 2021 and 2020. 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 Service for years before 2018 and is no longer subject to examinations by state authorities before 2017. |
Debt
Debt | 12 Months Ended |
Jan. 29, 2022 | |
Debt | |
Debt | 12 . Debt On March 11, 2020, the Company entered into Amendment No. 1 to the Second Amended and Restated Loan Agreement (as so amended, the Loan Agreement) with Wells Fargo Bank, National Association, as Administrative Agent, Collateral Agent and a Lender thereunder; Wells Fargo Bank, National Association and JPMorgan Chase Bank, N.A., as Lead Arrangers and Bookrunners; JPMorgan Chase Bank, N.A., as Syndication Agent and a Lender; PNC Bank, National Association, as Documentation Agent and a Lender; and the other lenders party thereto. The Loan Agreement matures on March 11, 2025, provides maximum revolving loans equal to the lesser of $1,000,000 or a percentage of eligible owned inventory and eligible owned receivables (which borrowing base may, at the election of the Company and satisfaction of certain conditions, include a percentage of qualified cash), contains a $50,000 subfacility for letters of credit and allows the Company to increase the revolving facility by an additional $100,000, subject to the consent by each lender and other conditions. The Loan Agreement contains a requirement to maintain a fixed charge coverage ratio of not less than 1.0 to 1.0 during such periods when availability under the Loan Agreement falls below a specified threshold. Substantially all of the Company’s assets are pledged as collateral for outstanding borrowings under the Loan Agreement. Outstanding borrowings bear interest, at the Company’s election, at either a base rate plus a margin of 0% to 0.125% or the London Interbank Offered Rate plus a margin of 1.125% to 1.250%, with such margins based on the Company’s borrowing availability, and the unused line fee is 0.20% per annum. As of January 29, 2022 and January 30, 2021, the Company had no borrowings outstanding under the credit facility. The weighted average interest rate was 1.56 % for fiscal 2020. As of January 29, 2022, the Company was in compliance with all terms and covenants of the Loan Agreement. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Jan. 29, 2022 | |
Fair value measurements | |
Fair value measurements | 13. 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 29, 2022 and January 30, 2021, there were liabilities related to the non-qualified deferred compensation plan included in other long-term liabilities on the consolidated balance sheets of $40,839 and $32,909, respectively. 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. Some assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. These assets can include long-lived assets and goodwill that are reduced to fair value when impaired. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs. |
Investments
Investments | 12 Months Ended |
Jan. 29, 2022 | |
Investments | |
Investments | 14 . Investments Investments in renewable energy projects are accounted for under the equity method of accounting. The balance of these investments was $2,671 and $3,174 as of January 29, 2022 and January 30, 2021, respectively, and is included in other long-term assets on the consolidated balance sheets. The Company did not contribute capital or receive investment tax credits during fiscal 2021. The Company contributed capital of $5,665 and received distributions including $1,689 of investment tax credits during fiscal 2020. The Company made other investments of $4,297 during fiscal 2021. |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Jan. 29, 2022 | |
Stock-based compensation | |
Stock-based compensation | 15 . Stock-based compensation The Company’s equity incentive plan was adopted in order to attract and retain personnel for positions of substantial authority and to provide additional incentive to employees and directors to promote the success of the business. The Amended and Restated 2011 Incentive Award 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. Unless provided otherwise by the administrator of the plan, options vest over four years The following table presents information related to stock-based compensation: Fiscal year ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Stock options $ 11,245 $ 10,757 $ 8,660 Restricted stock units 19,286 16,608 12,762 Performance-based restricted stock units 16,728 218 4,220 Total stock-based compensation expense $ 47,259 $ 27,583 $ 25,642 Cash received from stock option exercises $ 40,386 $ 12,229 $ 43,780 Income tax benefit $ 7,088 $ 750 $ 11,600 Stock options Stock-based compensation expense is measured on the grant date based on the fair value of the award. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period for awards expected to vest. The estimated grant date fair value of stock options was determined using a Black-Scholes valuation model using the following weighted-average assumptions for the periods indicated: Fiscal year ended January 29, January 30, February 1, 2022 2021 2020 Volatility rate 46.9% 43.0% 31.0% Average risk-free interest rate 0.4% 0.3% 2.3% Average expected life (in years) 3.9 3.4 3.5 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 stock options are estimated at the grant date based on historical rates of stock option activity and reduce the stock-based compensation expense recognized. The Company does not currently pay a regular dividend. The following table presents information related to common stock options: Fiscal year ended January 29, January 30, February 1, (In thousands, except weighted-average grant date fair value) 2022 2021 2020 Weighted-average grant date fair value $ 109.84 $ 54.40 $ 89.91 Fair value of options vested 10,417 9,741 9,143 Intrinsic value of options exercised 39,489 11,304 51,650 At January 29, 2022, there was approximately $11,623 of unrecognized stock-based compensation expense related to unvested stock options. The unrecognized stock-based compensation expense is expected to be recognized over a weighted-average period of approximately two years . A summary of stock option activity is presented in the following table (shares in thousands): Fiscal 2021 Fiscal 2020 Fiscal 2019 Weighted- Weighted- Weighted- Number of average Number of average Number of average options exercise price options exercise price options exercise price Beginning of year 671 $ 208.47 539 $ 212.58 755 $ 174.34 Granted 61 306.96 248 174.45 97 348.73 Exercised (224) 180.05 (90) 135.70 (285) 153.64 Forfeited/Expired (10) 225.24 (26) 219.47 (28) 263.34 End of year 498 $ 232.85 671 $ 208.47 539 $ 212.58 Exercisable at end of year 179 $ 248.11 236 $ 209.03 172 $ 159.39 Vested and Expected to vest 474 $ 233.28 639 $ 208.49 510 $ 211.14 The following table presents information related to stock options outstanding and stock options exercisable at January 29, 2022 based on ranges of exercise prices (shares in thousands): Options outstanding Options exercisable Weighted- Weighted- average average remaining remaining contractual Weighted- contractual Weighted- Number of life average Number of life average Range of Exercise Prices options (years) exercise price options (years) exercise price $74.91 – $127.15 11 2 $ 92.99 11 2 $ 92.99 $127.16 – $153.87 1 3 152.27 1 3 152.27 $153.88 – $174.45 213 8 174.45 27 8 174.45 $174.46 – $204.27 77 6 203.15 44 6 202.31 $204.28 – $281.53 57 5 281.53 57 5 281.53 $281.54 – $365.13 139 8 330.98 39 7 348.73 $74.91 – $365.13 498 7 $ 232.85 179 6 $ 248.11 The aggregate intrinsic value of outstanding and exercisable stock options as of January 29, 2022 was $62,762 and $19,793, respectively. The last reported sale price of the Company’s common stock on the NASDAQ Global Select Market on January 29, 2022 was $358.83 per share. Restricted stock units Restricted stock units are granted to certain employees and directors. Employee grants generally cliff vest after three years one year date based on historical rates of stock award activity and reduce the stock-based compensation expense recognized. At January 29, 2022, unrecognized stock-based compensation expense related to restricted stock units was $22,179. The unrecognized stock-based compensation expense is expected to be recognized over a weighted-average period of approximately one and a half A summary of restricted stock units activity is presented in the following table (shares in thousands): Fiscal 2021 Fiscal 2020 Fiscal 2019 Weighted- Weighted- Weighted- Number of average grant Number of average grant Number of average grant units date fair value units date fair value units date fair value Beginning of year 253 $ 210.46 159 $ 259.21 168 $ 220.68 Granted 61 312.42 163 179.72 53 335.28 Vested (76) 209.88 (38) 276.51 (46) 207.77 Forfeited (17) 233.94 (31) 218.40 (16) 259.65 End of year 221 $ 236.95 253 $ 210.46 159 $ 259.21 Expected to vest 205 $ 236.95 234 $ 210.46 147 $ 259.21 Performance-based restricted stock units Performance-based restricted stock units are granted to certain employees. Units granted prior to 2021 cliff vest after three years one and a half years A summary of performance-based restricted stock unit activity is presented in the following table (shares in thousands): Fiscal 2021 Fiscal 2020 Fiscal 2019 Weighted- Weighted- Weighted- Number of average Number of average Number of average units grant date units grant date units grant date Beginning of year 37 $ 271.88 62 $ 267.60 94 $ 214.64 Granted 74 326.99 — — 21 348.73 Change in performance award payout (7) 348.73 (5) 204.27 (3) 281.53 Vested (47) 295.49 (14) 281.53 (43) 191.76 Forfeited (3) 319.71 (6) 263.38 (7) 258.80 End of year 54 $ 314.30 37 $ 271.88 62 $ 267.60 Expected to vest 50 $ 314.30 35 $ 271.88 57 $ 267.60 The number of performance-based restricted stock units granted is based on achieving the targeted performance goals as defined in the performance-based restricted stock unit agreements. As of January 29, 2022, the maximum number of units that could vest under the provisions of the agreements was 92 Awards with market conditions are classified as liability awards and the fair value is determined using a Monte Carlo simulation. Market-based restricted stock units totaling 28 shares were granted to the former Chief Executive Officer in fiscal 2018 and settled during fiscal 2021. Compensation expense for liability awards was $7,671, $879, and $597 for the fiscal years ended January 29, 2022, January 30, 2021, and February 1, 2020, respectively. |
Net income per common share
Net income per common share | 12 Months Ended |
Jan. 29, 2022 | |
Net income per common share | |
Net income per common share | 16 . 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 common share: Fiscal year ended January 29, January 30, February 1, (In thousands, except per share data) 2022 2021 2020 Numerator: Net income $ 985,837 $ 175,835 $ 705,945 Denominator: Weighted-average common shares – Basic 54,482 56,351 57,840 Dilutive effect of stock options and non-vested stock 359 207 265 Weighted-average common shares – Diluted 54,841 56,558 58,105 Net income per common share: Basic $ 18.09 $ 3.12 $ 12.21 Diluted $ 17.98 $ 3.11 $ 12.15 The denominator for diluted net income per common share for fiscal years 2021, 2020, and 2019 excludes 205, 211, and 298 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. 29, 2022 | |
Employee benefit plans | |
Employee benefit plans | 17 . 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 2021, 2020, and 2019, the Company match was 100% of the first 3% of eligible compensation and an additional 50% match for the next 2% of eligible compensation. Total expense recorded under this plan is included in SG&A expenses in the consolidated statements of income as follows: Fiscal year ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 401(k) plan matching contribution expense $ 19,296 $ 16,878 $ 16,556 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 2021, 2020, and 2019, the Company match was 100% of the first 3% of salary. 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 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. Total expense recorded under this plan is included in SG&A expenses in the consolidated statements of income and was insignificant during fiscal 2021, 2020, and 2019. Amounts included in the consolidated balance sheets related to the deferred compensation plan were as follows: January 29, January 30, (In thousands) 2022 2021 Deferred compensation plan liability $ 40,839 $ 32,909 Deferred compensation plan assets 38,409 33,223 |
Share repurchase program
Share repurchase program | 12 Months Ended |
Jan. 29, 2022 | |
Share repurchase program | |
Share repurchase program | 18. Share repurchase program In March 2019, the Board of Directors authorized a share repurchase program (the 2019 Share Repurchase Program) pursuant to which the Company could repurchase up to $875,000 of the Company’s common stock. The 2019 Share Repurchase Program authorization revoked the previously authorized but unused amount of $25,435 from the earlier share repurchase program. The 2019 Share Repurchase Program did not have an expiration date but provided for suspension or discontinuation at any time. In March 2020, the Board of Directors authorized a new share repurchase program (the 2020 Share Repurchase Program) pursuant to which the Company could repurchase up to $1,600,000 of the Company’s common stock. The 2020 Share Repurchase Program authorization revoked the previously authorized but unused amount of $177,805 from the 2019 Share Repurchase Program. The 2020 Share Repurchase Program did not have an expiration date but provided for suspension or discontinuation at any time. During fiscal 2020, the share repurchase program was suspended in order to strengthen its liquidity and preserve cash while navigating the COVID-19 pandemic. The program resumed during the fourth quarter of fiscal 2020. A summary of common stock repurchase activity is presented in the following table: Fiscal year ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Shares repurchased 4,250 475 2,321 Total cost of shares repurchased $ 1,521,925 $ 114,895 $ 680,979 |
Subsequent event
Subsequent event | 12 Months Ended |
Jan. 29, 2022 | |
Subsequent event | |
Subsequent event | 19. Subsequent event On March 7, 2022, the Board of Directors authorized a new share repurchase program (the 2022 Share Repurchase Program) pursuant to which the Company may repurchase up to $2,000,000 of the Company’s common stock. The 2022 Share Repurchase Program does not have an expiration date and may be suspended or discontinued at any time. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Jan. 29, 2022 | |
Summary of significant accounting policies | |
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 29, 2022 (fiscal 2021), January 30, 2021 (fiscal 2020), and February 1, 2020 (fiscal 2019) 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 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. The Company considers its accounting policies relating to inventory valuations, vendor allowances, impairment of long-lived tangible and right-of-use assets, loyalty program and income taxes to be the most significant accounting policies that involve management estimates and judgments. Significant changes, if any, in those estimates and assumptions resulting from continuing changes in the economic environment, including those related to the impacts of the COVID-19 pandemic, will be reflected in the consolidated financial statements in future periods. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. |
Cash and cash equivalents | Cash and cash equivalents Cash equivalents include highly liquid investments such as money market funds and certificates of deposit with an original maturity of three months or less from the date of purchase. Cash equivalents also include amounts due from third-party financial institutions for credit card and debit card transactions. These receivables typically settle in five days or less with little or no default risk. January 29, January 30, (In thousands) 2022 2021 Cash $ 165,122 $ 887,299 Short-term investments 199,939 99,986 Receivables from third-party financial institutions for credit card and debit card transactions 66,499 58,766 Cash and cash equivalents $ 431,560 $ 1,046,051 |
Fair value of financial instruments | Fair value of financial instruments The carrying value of cash and cash equivalents, accounts receivable, and accounts payable approximates fair value due to the short maturities of these instruments. There was no outstanding debt as of January 29, 2022 and January 30, 2021. |
Receivables | Receivables Receivables primarily include amounts due from vendors for allowances, amounts related to the employee retention credit (ERC), and amounts due from third-party gift card providers. 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 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. January 29, January 30, (In thousands) 2022 2021 Vendor allowances $ 114,853 $ 90,271 Employee retention credit (1) 56,426 52,405 Gift card 34,655 27,020 Other 28,753 24,181 Allowance for doubtful accounts (1,005) (768) Receivables, net $ 233,682 $ 193,109 (1) During the fiscal years ended January 29, 2022 and January 30, 2021, the Company qualified for various relief measures resulting from the Coronavirus Aid, Relief and Economic Security (CARES) Act, including the ERC which allowed for a refundable tax credit against certain employment taxes on qualified wages. During the fiscal years ended January 29, 2022 and January 30, 2021, there was $4,021 and $52,405, respectively, related to the ERC recognized as a reduction of the associated costs within selling, general and administrative expenses on the consolidated statements of income . |
Vendor allowances | Vendor allowances The Company receives consideration from vendors for advertising, markdown allowances, purchase volume discounts and rebates, 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 recognized in cost of sales as the product is sold. |
Merchandise inventories | Merchandise inventories Merchandise inventories are stated at the lower of cost or net realizable value. Cost is determined using the moving 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 an inventory reserve for lower of cost or net realizable value and shrink. The inventory reserve was $26,882 and $52,860 as of January 29, 2022 and January 30, 2021, respectively. |
Property and equipment and internal use software | Property and equipment and internal use software Property and equipment is stated at cost, net of accumulated depreciation, and depreciated using the straight-line method over the shorter of the assets’ estimated useful lives or lease term. Leasehold improvements purchased after the beginning of the initial lease term are amortized over the shorter of the assets’ useful lives or a term that includes the original lease term, plus any renewals that are reasonably certain at the date the leasehold improvements are acquired. Repair and maintenance costs are expensed as incurred. Equipment and fixtures 1 to 10 years Electronic equipment and software 3 to 5 years Costs incurred to obtain or develop internal use software that are capitalized are amortized on a straight-line basis over the estimated useful life of the software. Cloud computing arrangements (software-as-a-service contracts) and related implementation costs that are capitalized are amortized on a straight-line basis over the contract term ( 1 month to 5 years ). These amounts are classified within prepaid expenses and other current assets and other long-term assets in the consolidated balance sheets. |
Impairment of long-lived tangible and right-of-use assets | Impairment of long-lived tangible and right-of-use assets The asset group is defined as the lowest level for which identifiable cash flows are available and largely independent of the cash flows of other groups of assets. The asset group identified is at the store level and includes both property and equipment and operating lease assets. Significant estimates are used in determining future cash flows of each store over its remaining lease term including our expectations of future projected cash flows including revenues and operating expenses. An impairment loss is recorded if the carrying amount of the long-lived asset exceeds its fair value. Long-lived tangible and right-of-use assets are evaluated for indicators of impairment quarterly or when events or changes in circumstances indicate that their carrying amounts may not be recoverable. An undiscounted cash flow analysis is performed over the asset group. Asset groups are written down only to the extent that their carrying value exceeds their respective fair value. Fair values of the asset group are determined by discounting the cash flows at a rate that approximates the cost of capital of a market participant. Management’s forecast of future cash flows is based on the income approach. The fair value of individual right-of-use assets is determined under the market approach using estimated market rent assessments based on broker quotes. The determination of fair value under the income approach requires assumptions including forecasts of future cash flows (such as revenue growth rates and operating expenses) and selection of a market-based discount rate. Estimates of market rent are based on non-binding broker quotes. As these inputs are unobservable, they are classified as Level 3 inputs under the fair value hierarchy (see Note 13, “Fair value measurements”). If actual results are not consistent with estimates and assumptions used in estimating future cash flows and asset fair values, there may be exposure to additional impairment losses in a future period (see Note 4, “Impairment, restructuring and other costs”). |
Goodwill and Other intangible assets | Goodwill Goodwill represents the excess of cost over the fair value of net assets acquired. The recoverability of goodwill is reviewed annually during the fourth quarter or more frequently if an event occurs or circumstances change that would indicate that impairment may exist (see Note 6, “Goodwill”). Other intangible assets Other definite-lived intangible assets are amortized over their useful lives. The recoverability of intangible assets is reviewed whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable (see Note 7, “Other intangible assets”). |
Leases | Leases The Company determines whether an arrangement is or contains a lease at contract inception. The lease classification evaluation begins at the lease commencement date. The lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain. Total rent payable is recorded during the lease term, including rent escalations in which the amount of future rent is fixed on the straight-line basis over the term of the lease (including the rent holiday period beginning upon control of the premises and any fixed payments stated in the lease). For leases with an initial term greater than 12 months, a related lease liability is recorded on the balance sheet at the present value of future payments discounted at the estimated fully collateralized incremental borrowing rate (discount rate) corresponding with the lease term. In addition, a right-of-use asset is recorded as the initial amount of the lease liability, plus any lease payments made to the lessor before or at the lease commencement date and any initial direct costs incurred, less any tenant improvement allowance incentives received. Tenant incentives are amortized through the right-of-use asset as reduction of rent expense over the lease term. The difference between the minimum rents paid and the straight-line rent is reflected within the right-of-use asset. Certain leases contain provisions that require variable payments based upon sales volume or payment of common area maintenance costs, real estate taxes, and insurance related to leases . This results in some variability in lease expense as a percentage of revenues over the term of the lease in stores where variable lease costs are paid. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the balance sheet. Short-term lease expense is recognized on a straight-line basis over the lease term. The Company subleases certain real estate to third parties for stores with excess square footage space. The Company does not separate lease and non-lease components (e.g., common area maintenance). As the interest rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate corresponding with the lease term. As there are no outstanding borrowings under the Company’s credit facility, this rate is estimated based on prevailing market conditions, comparable company and credit analysis, and judgment. The incremental borrowing rate is reassessed if there is a change to the lease term or if a modification occurs and it is not accounted for as a separate contract (see Note 8, “Leases”). |
Loyalty program | Loyalty program The Company maintains a loyalty program, Ultamate Rewards, which allows members to earn points based on purchases of merchandise or services. Points earned are valid for at least one year |
Credit cards | Credit cards The Company has agreements (the Agreements) with third parties to provide guests with private label credit cards and/or co-branded credit cards (collectively, the Credit Cards). The private label credit card can be used at any store location 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’s performance obligation is to maintain the Ultamate Rewards loyalty program as only guests enrolled in the loyalty program can apply for the Credit Cards. Loyalty members earn points through purchases at Ulta Beauty and anywhere the co-branded credit card is accepted, including Ulta Beauty at Target. The third parties reimburse the Company for certain credit card program costs such as advertising and loyalty points, which help promote the credit card program. The Company recognizes revenue when collectability is reasonably assured, under the assumption the amounts are not constrained and it is probable that a significant revenue reversal will not occur in future periods, which is generally the time at which the actual usage of the Credit Cards or specified transaction occurs. The Company accounts for the amounts associated with the Agreements as a single contract with the sole commercial objective to maintain the Credit Card programs. As a result, all amounts associated with the Agreements are recognized within net sales on the consolidated statements of income. |
Gift card program | Gift card program The Company records a contract liability for gift card sales which will be redeemed in the future within deferred revenue on the consolidated balance sheets and recognized in net sales when the gift card is redeemed for product or services. Gift cards do not expire and do not include service fees that decrease guest balances. The Company maintains historical data related to gift card transactions sold and redeemed over a significant time frame. Gift card breakage (amounts not expected to be redeemed) is recognized to the extent there is no requirement for remitting balances to governmental agencies under unclaimed property laws. Estimated gift card breakage revenue is recognized over time in proportion to actual gift card redemptions. Gift card breakage revenue was $15,266, $11,717, and $12,448 in fiscal 2021, 2020, and 2019, respectively. |
Revenue recognition | Revenue recognition Revenue is recognized when control of the promised goods or services is transferred to the guest, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a guest; ● Identification of the performance obligations in the contract; ● Determination of the transaction price; ● Allocation of the transaction price to the performance obligations in the contract; and ● Recognition of revenue when, or as, a performance obligation is satisfied. Net sales include retail stores and e-commerce merchandise sales as well as salon services and other revenue. Revenue from merchandise sales at retail stores is recognized at the point of sale, net of estimated returns. Revenue from e-commerce merchandise sales is recognized upon shipment to the guest or guest pickup of the merchandise based on meeting the transfer of control criteria, net of estimated returns. Salon services revenue is recognized at the time the service is provided to the guest. Shipping and handling are treated as costs to fulfill the contract and not a separate performance obligation. Accordingly, the Company recognizes revenue for its single performance obligation related to e-commerce sales at the time control of the merchandise passes to the customer, which is at the time of shipment or guest pickup. The Company provides refunds for merchandise returns within 60 days from the original purchase date. 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. Company coupons and other incentives are recorded as a reduction of net sales. |
Advertising | Advertising Advertising costs primarily consist of print, digital and social media, and television and radio advertising. Costs related to advertising are expensed in the period the related promotional event occurs. Fiscal year ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Advertising expense $ 387,794 $ 281,573 $ 317,865 Advertising expense as a percentage of net sales 4.5% 4.6% 4.3% Prepaid advertising costs included in prepaid expenses and other current assets on the consolidated balance sheets were $7,612 and $7,112 as of January 29, 2022 and January 30, 2021, respectively. |
Pre-opening expenses | Pre-opening expenses Non-capital expenditures incurred prior to the grand opening of a new, remodeled, or relocated store are expensed as incurred. |
Cost of sales | Cost of sales Cost of sales includes the cost of merchandise sold, including substantially all vendor allowances, which are treated as a reduction of merchandise costs; distribution costs including labor and related benefits, freight, rent, depreciation and amortization, real estate taxes, utilities, and insurance; shipping and handling costs; retail stores occupancy costs including rent, depreciation and amortization, real estate taxes, utilities, repairs and maintenance, insurance, and licenses; salon services payroll and benefits; and shrink and inventory valuation reserves. |
Selling, general and administrative expenses | Selling, general and administrative expenses Selling, general and administrative (SG&A) expenses includes payroll, bonus, and benefit costs for retail and corporate employees; advertising and marketing costs; occupancy costs related to our corporate office facilities; stock-based compensation expense; depreciation and amortization for all assets, except those related to our retail store and distribution 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 financial statement carrying amounts of assets and liabilities and their tax bases. 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 in the consolidated statements of income (see Note 11, “Income taxes”). |
Stock-based compensation | Stock-based compensation Stock-based compensation expense is measured at grant date, based on the fair value of the award, and is recognized on a straight-line basis over the requisite service period for awards expected to vest. Stock-based compensation expense was $47,259, $27,583, and $25,642 in fiscal 2021, 2020, and 2019, respectively (see Note 15, “Stock-based compensation”). |
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 $400 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. UB Insurance, Inc., an Arizona-based wholly owned captive insurance subsidiary of the Company, charges the operating subsidiaries of the Company premiums to insure certain liability exposures. Pursuant to Arizona insurance regulations, UB Insurance, Inc. maintains certain levels of cash and cash equivalents related to its liability exposures. |
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 common share includes dilutive common stock equivalents, using the treasury stock method (see Note 16, “Net income per common share”). |
Recent adopted accounting pronouncements | Recently adopted accounting pronouncements Taxes – Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. In December 2019, the Financial Accounting Standards Board (FASB) issued (ASU) 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes. The guidance removes certain exceptions for recognizing deferred taxes for equity method investments, performing intraperiod allocation, and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for goodwill and allocating taxes to members of a consolidated group, among others. This guidance is effective after December 15, 2020. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The transition requirements are dependent upon each amendment within this update and will be applied either prospectively or retrospectively. The Company adopted the new guidance as of January 31, 2021, and its adoption had no impact on the Company’s consolidated financial position, results of operations, or cash flows. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Summary of significant accounting policies | |
Schedule of cash and cash equivalents | January 29, January 30, (In thousands) 2022 2021 Cash $ 165,122 $ 887,299 Short-term investments 199,939 99,986 Receivables from third-party financial institutions for credit card and debit card transactions 66,499 58,766 Cash and cash equivalents $ 431,560 $ 1,046,051 |
Schedule of receivables | January 29, January 30, (In thousands) 2022 2021 Vendor allowances $ 114,853 $ 90,271 Employee retention credit (1) 56,426 52,405 Gift card 34,655 27,020 Other 28,753 24,181 Allowance for doubtful accounts (1,005) (768) Receivables, net $ 233,682 $ 193,109 (1) During the fiscal years ended January 29, 2022 and January 30, 2021, the Company qualified for various relief measures resulting from the Coronavirus Aid, Relief and Economic Security (CARES) Act, including the ERC which allowed for a refundable tax credit against certain employment taxes on qualified wages. During the fiscal years ended January 29, 2022 and January 30, 2021, there was $4,021 and $52,405, respectively, related to the ERC recognized as a reduction of the associated costs within selling, general and administrative expenses on the consolidated statements of income . |
Schedule of advertising costs | Fiscal year ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Advertising expense $ 387,794 $ 281,573 $ 317,865 Advertising expense as a percentage of net sales 4.5% 4.6% 4.3% |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Revenue | |
Schedule of approximate percentage of net sales by primary category | The following table sets forth the approximate percentage of net sales by primary category: Fiscal year ended January 29, January 30, February 1, (Percentage of net sales) 2022 2021 2020 Cosmetics (1) 43% 45% 51% Haircare products and styling tools (1) 20% 20% 18% Skincare (1) 17% 16% 14% Fragrance and bath 14% 12% 9% Services 3% 3% 5% Accessories and other (1) 3% 4% 3% 100% 100% 100% (1) Certain sales departments were reclassified between categories in the prior year to conform to current year presentation . |
Summary of changes in deferred revenue | The following table provides a summary of the changes included in deferred revenue during fiscal 2021 and 2020: January 29, January 30, (In thousands) 2022 2021 Beginning balance $ 269,032 $ 230,011 Additions to contract liabilities (1) 261,139 200,267 Deductions to contract liabilities (2) (184,965) (161,246) Ending balance $ 345,206 $ 269,032 (1) Loyalty points and gift cards issued in the current period but not redeemed or expired. (2) Revenue recognized in the current period related to the beginning liability. |
Property and equipment and in_2
Property and equipment and internal use software (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Property and equipment and internal use software | |
Schedule of components of property and equipment | January 29, January 30, (In thousands) 2022 2021 Equipment and fixtures $ 1,118,312 $ 1,083,509 Leasehold improvements 813,068 782,036 Electronic equipment and software 609,734 649,603 Construction-in-progress 91,897 52,668 2,633,011 2,567,816 Less: accumulated depreciation and amortization (1,718,535) (1,572,021) Property and equipment, net $ 914,476 $ 995,795 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Goodwill | |
Schedule of changes in the carrying amounts of goodwill | The changes in the carrying amounts of goodwill during the fiscal 2021 and 2020 are as follows: January 29, January 30, (In thousands) 2022 2021 Balance at beginning of the period $ 10,870 $ 10,870 Acquisitions — — Balance at the end of the period $ 10,870 $ 10,870 |
Other intangible assets (Tables
Other intangible assets (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Other intangible assets | |
Schedule of other intangible assets subject to amortization | January 29, 2022 January 30, 2021 Weighted-average Gross Gross remaining useful carrying Accumulated carrying Accumulated (In thousands) life in years value amortization Net value amortization Net Developed technology 1.7 $ 4,631 $ (3,093) $ 1,538 $ 4,631 $ (2,166) $ 2,465 |
Schedule of estimated amortization expense related to intangible assets | Estimated amortization expense Fiscal year (In thousands) 2022 $ 926 2023 612 2024 — 2025 — 2026 — 2027 and thereafter — $ 1,538 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Leases | |
Schedule of weighted-average remaining lease term and discount rate for operating leases | The following table presents supplemental balance sheet information, the weighted-average remaining lease term, and discount rate for operating leases: January 29, January 30, (In thousands) Classification on the Balance Sheet 2022 2021 Right-of-use assets Operating lease assets $ 1,482,256 $ 1,504,614 Current lease liabilities Current operating lease liabilities $ 274,118 $ 253,415 Non-current lease liabilities Non-current operating lease liabilities 1,572,638 1,643,386 Total lease liabilities $ 1,846,756 $ 1,896,801 Weighted-average remaining lease term 6.6 6.9 Weighted-average discount rate 3.3% 3.6% |
Schedule of cash flow information related to operating leases | The following table presents supplemental disclosures of cash flow information related to operating leases: Fiscal Year Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Cash paid for operating lease liabilities (1) $ 368,498 $ 354,133 $ 338,942 Operating lease assets obtained in exchange for operating lease liabilities (non-cash) 253,870 255,966 355,286 (1) Excludes $28,591, $33,092, and $71,294 related to cash received for tenant incentives as of January 29, 2022, January 30, 2021, and February 1, 2020, respectively. |
Schedule of maturities of operating lease liabilities | The following table presents maturities of operating lease liabilities: Fiscal year (In thousands) 2022 $ 330,260 2023 349,856 2024 318,507 2025 289,025 2026 250,945 2027 and thereafter 517,798 Total lease payments $ 2,056,391 Less: imputed interest (209,635) Present value of operating lease liabilities $ 1,846,756 |
Accrued liabilities (Tables)
Accrued liabilities (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Accrued liabilities | |
Schedule of accrued liabilities | Accrued liabilities consist of the following: January 29, January 30, (In thousands) 2022 2021 Accrued payroll, bonus, and employee benefits (1) $ 158,017 $ 143,992 Accrued advertising 49,477 23,543 Accrued taxes 43,464 36,787 Other accrued liabilities 113,839 92,012 Accrued liabilities $ 364,797 $ 296,334 (1) Includes $43,845 in social security tax payments deferred related to the CARES Act as of January 30, 2021. There was no deferral related to the CARES Act as of January 29, 2022 . |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Income Taxes | |
Schedule of provision for income taxes | Fiscal year ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Current: Federal $ 280,300 $ 67,724 $ 163,596 State 55,358 11,534 31,106 Total current 335,658 79,258 194,702 Deferred: Federal (22,936) (19,631) 1,182 State (2,730) (4,377) 4,321 Total deferred (25,666) (24,008) 5,503 Provision for income taxes $ 309,992 $ 55,250 $ 200,205 |
Schedule of reconciliation of federal statutory rate to effective tax rate | Fiscal year ended January 29, January 30, February 1, 2022 2021 2020 Federal statutory rate 21.0% 21.0% 21.0% State effective rate, net of federal tax benefit 3.3% 2.9% 3.1% Executive compensation limitation 0.5% 1.2% 0.2% Excess deduction of stock compensation (0.5%) (0.3%) (1.1%) Other (0.4%) (0.9%) (1.1%) Effective tax rate 23.9% 23.9% 22.1% |
Schedule of components of deferred tax assets and liabilities | January 29, January 30, (In thousands) 2022 2021 Deferred tax assets: Operating lease liability $ 471,687 $ 484,780 Reserves not currently deductible 47,059 32,590 Accrued liabilities 33,289 31,056 Employee benefits 24,355 23,687 Property and equipment 1,710 — Credit carryforwards 334 291 NOL carryforwards 303 255 Inventory valuation — 8,386 Total deferred tax assets 578,737 581,045 Deferred tax liabilities: Operating lease asset 561,137 561,605 Prepaid expenses 45,815 46,013 Receivables not currently includable 5,398 3,720 Inventory valuation 3,490 — Other 2,224 1,669 Intangibles 366 585 Property and equipment — 32,812 Total deferred tax liabilities 618,430 646,404 Net deferred tax liability $ (39,693) $ (65,359) |
Schedule of reconciliation of unrecognized tax benefits, excluding interest and penalties | January 29, January 30, (In thousands) 2022 2021 Balance at beginning of the year $ 2,783 $ 3,536 Increase due to a prior year tax position 1,219 224 Decrease due to a prior year tax position (613) (977) Balance at end of the year $ 3,389 $ 2,783 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Stock-based compensation | |
Schedule of information related to stock-based compensation | Fiscal year ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Stock options $ 11,245 $ 10,757 $ 8,660 Restricted stock units 19,286 16,608 12,762 Performance-based restricted stock units 16,728 218 4,220 Total stock-based compensation expense $ 47,259 $ 27,583 $ 25,642 Cash received from stock option exercises $ 40,386 $ 12,229 $ 43,780 Income tax benefit $ 7,088 $ 750 $ 11,600 |
Schedule of weighted average assumptions to determine grant date fair value of employee stock options | Fiscal year ended January 29, January 30, February 1, 2022 2021 2020 Volatility rate 46.9% 43.0% 31.0% Average risk-free interest rate 0.4% 0.3% 2.3% Average expected life (in years) 3.9 3.4 3.5 Dividend yield None None None |
Information related to common stock options plan | The following table presents information related to common stock options: Fiscal year ended January 29, January 30, February 1, (In thousands, except weighted-average grant date fair value) 2022 2021 2020 Weighted-average grant date fair value $ 109.84 $ 54.40 $ 89.91 Fair value of options vested 10,417 9,741 9,143 Intrinsic value of options exercised 39,489 11,304 51,650 |
Summary of stock option activity | A summary of stock option activity is presented in the following table (shares in thousands): Fiscal 2021 Fiscal 2020 Fiscal 2019 Weighted- Weighted- Weighted- Number of average Number of average Number of average options exercise price options exercise price options exercise price Beginning of year 671 $ 208.47 539 $ 212.58 755 $ 174.34 Granted 61 306.96 248 174.45 97 348.73 Exercised (224) 180.05 (90) 135.70 (285) 153.64 Forfeited/Expired (10) 225.24 (26) 219.47 (28) 263.34 End of year 498 $ 232.85 671 $ 208.47 539 $ 212.58 Exercisable at end of year 179 $ 248.11 236 $ 209.03 172 $ 159.39 Vested and Expected to vest 474 $ 233.28 639 $ 208.49 510 $ 211.14 |
Schedule of options outstanding and exercisable based on ranges of exercise prices | The following table presents information related to stock options outstanding and stock options exercisable at January 29, 2022 based on ranges of exercise prices (shares in thousands): Options outstanding Options exercisable Weighted- Weighted- average average remaining remaining contractual Weighted- contractual Weighted- Number of life average Number of life average Range of Exercise Prices options (years) exercise price options (years) exercise price $74.91 – $127.15 11 2 $ 92.99 11 2 $ 92.99 $127.16 – $153.87 1 3 152.27 1 3 152.27 $153.88 – $174.45 213 8 174.45 27 8 174.45 $174.46 – $204.27 77 6 203.15 44 6 202.31 $204.28 – $281.53 57 5 281.53 57 5 281.53 $281.54 – $365.13 139 8 330.98 39 7 348.73 $74.91 – $365.13 498 7 $ 232.85 179 6 $ 248.11 |
Summary of restricted stock units activity | A summary of restricted stock units activity is presented in the following table (shares in thousands): Fiscal 2021 Fiscal 2020 Fiscal 2019 Weighted- Weighted- Weighted- Number of average grant Number of average grant Number of average grant units date fair value units date fair value units date fair value Beginning of year 253 $ 210.46 159 $ 259.21 168 $ 220.68 Granted 61 312.42 163 179.72 53 335.28 Vested (76) 209.88 (38) 276.51 (46) 207.77 Forfeited (17) 233.94 (31) 218.40 (16) 259.65 End of year 221 $ 236.95 253 $ 210.46 159 $ 259.21 Expected to vest 205 $ 236.95 234 $ 210.46 147 $ 259.21 |
Summary of Performance-based restricted stock units activity | A summary of performance-based restricted stock unit activity is presented in the following table (shares in thousands): Fiscal 2021 Fiscal 2020 Fiscal 2019 Weighted- Weighted- Weighted- Number of average Number of average Number of average units grant date units grant date units grant date Beginning of year 37 $ 271.88 62 $ 267.60 94 $ 214.64 Granted 74 326.99 — — 21 348.73 Change in performance award payout (7) 348.73 (5) 204.27 (3) 281.53 Vested (47) 295.49 (14) 281.53 (43) 191.76 Forfeited (3) 319.71 (6) 263.38 (7) 258.80 End of year 54 $ 314.30 37 $ 271.88 62 $ 267.60 Expected to vest 50 $ 314.30 35 $ 271.88 57 $ 267.60 |
Net income per common share (Ta
Net income per common share (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Net income per common share | |
Schedule reconciliation of net income and the number of shares of common stock used in the computation of net income per basic and diluted common share | Fiscal year ended January 29, January 30, February 1, (In thousands, except per share data) 2022 2021 2020 Numerator: Net income $ 985,837 $ 175,835 $ 705,945 Denominator: Weighted-average common shares – Basic 54,482 56,351 57,840 Dilutive effect of stock options and non-vested stock 359 207 265 Weighted-average common shares – Diluted 54,841 56,558 58,105 Net income per common share: Basic $ 18.09 $ 3.12 $ 12.21 Diluted $ 17.98 $ 3.11 $ 12.15 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Employee benefit plans | |
Schedule of total expense recorded under the 401(k) retirement plan included in SG&A expenses in the consolidated statements of income | Fiscal year ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 401(k) plan matching contribution expense $ 19,296 $ 16,878 $ 16,556 |
Schedule of amounts included in the consolidated balance sheets related to the deferred compensation plan | Amounts included in the consolidated balance sheets related to the deferred compensation plan were as follows: January 29, January 30, (In thousands) 2022 2021 Deferred compensation plan liability $ 40,839 $ 32,909 Deferred compensation plan assets 38,409 33,223 |
Share repurchase program (Table
Share repurchase program (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Share repurchase program | |
Summary of the Company's common stock repurchase activity | A summary of common stock repurchase activity is presented in the following table: Fiscal year ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Shares repurchased 4,250 475 2,321 Total cost of shares repurchased $ 1,521,925 $ 114,895 $ 680,979 |
Business and basis of present_2
Business and basis of presentation (Details) | 12 Months Ended |
Jan. 29, 2022statesegmentstore | |
Business and basis of presentation | |
Number of stores operated | store | 1,308 |
Number of states in which entity operates | state | 50 |
Number of reportable segments | segment | 1 |
Summary of significant accoun_4
Summary of significant accounting policies (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 29, 2022 | Oct. 30, 2021 | Jul. 31, 2021 | May 01, 2021 | Jan. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Fiscal year | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 364 days | 364 days | 364 days |
Minimum | |||||||||||
Fiscal year | 364 days | ||||||||||
Maximum | |||||||||||
Fiscal year | 371 days |
Summary of significant accoun_5
Summary of significant accounting policies - Cash and cash equivalents (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Cash and cash equivalents | ||||
Cash | $ 165,122 | $ 887,299 | ||
Short- term investments | 199,939 | 99,986 | ||
Receivables from third-party financial institutions for credit card and debit card transactions | 66,499 | 58,766 | ||
Cash and cash equivalents | 431,560 | 1,046,051 | $ 392,325 | $ 409,251 |
Fair value of financial instruments | ||||
Outstanding debt | $ 0 | $ 0 |
Summary of significant accoun_6
Summary of significant accounting policies - Receivables and Merchandise inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 29, 2022 | Jan. 30, 2021 | |
Receivables | ||
Receivables, net | $ 233,682 | $ 193,109 |
Allowance for doubtful accounts | (1,005) | (768) |
Reduction of associated costs related to ERC | 4,021 | 52,405 |
Merchandise inventories | ||
Inventory reserve | 26,882 | 52,860 |
Vendor allowances | ||
Receivables | ||
Receivables, net | 114,853 | 90,271 |
Employee retention credit | ||
Receivables | ||
Receivables, net | 56,426 | 52,405 |
Gift Card | ||
Receivables | ||
Receivables, net | 34,655 | 27,020 |
Other | ||
Receivables | ||
Receivables, net | $ 28,753 | $ 24,181 |
Summary of significant accoun_7
Summary of significant accounting policies - Property and Equipment and internal use software (Details) | 12 Months Ended |
Jan. 29, 2022 | |
Equipment and fixtures | Minimum | |
Property and equipment and internal use software | |
Estimated useful lives or the expected lease term | 1 year |
Equipment and fixtures | Maximum | |
Property and equipment and internal use software | |
Estimated useful lives or the expected lease term | 10 years |
Electronic equipment and software | Minimum | |
Property and equipment and internal use software | |
Estimated useful lives or the expected lease term | 3 years |
Electronic equipment and software | Maximum | |
Property and equipment and internal use software | |
Estimated useful lives or the expected lease term | 5 years |
Cloud computing arrangements | Minimum | |
Property and equipment and internal use software | |
Term of contract | 1 month |
Cloud computing arrangements | Maximum | |
Property and equipment and internal use software | |
Term of contract | 5 years |
Summary of significant accoun_8
Summary of significant accounting policies - Loyalty Program (Details) | 12 Months Ended |
Jan. 29, 2022 | |
Summary of significant accounting policies | |
Minimum term that loyalty program points are valid | 1 year |
Summary of significant accoun_9
Summary of significant accounting policies -Gift Card Program and Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Revenue recognition | |||
Revenues | $ 8,630,889 | $ 6,151,953 | $ 7,398,068 |
Term of refund for product returns | 60 days | ||
Gift card breakage | |||
Revenue recognition | |||
Revenues | $ 15,266 | $ 11,717 | $ 12,448 |
Summary of significant accou_10
Summary of significant accounting policies -Advertising (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Summary of significant accounting policies | |||
Advertising expense | $ 387,794 | $ 281,573 | $ 317,865 |
Advertising expense as a percentage of net sales | 4.50% | 4.60% | 4.30% |
Prepaid advertising costs | $ 7,612 | $ 7,112 |
Summary of significant accou_11
Summary of significant accounting policies -Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Summary of significant accounting policies | |||
Stock-based compensation | $ 47,259 | $ 27,583 | $ 25,642 |
Summary of significant accou_12
Summary of significant accounting policies -Insurance Expense (Details) $ in Thousands | 12 Months Ended |
Jan. 29, 2022USD ($) | |
Summary of significant accounting policies | |
Stop loss coverage per employee health claim | $ 400 |
Stop loss coverage per general liability claim | 100 |
Stop loss coverage per workers compensation claim | $ 250 |
Revenue - Disaggregated revenue
Revenue - Disaggregated revenue (Details) - Sales Revenue - Product concentration | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Disaggregated revenue | |||
Concentration (as a percent) | 100.00% | 100.00% | 100.00% |
Cosmetics | |||
Disaggregated revenue | |||
Concentration (as a percent) | 43.00% | 45.00% | 51.00% |
Haircare products and styling tools | |||
Disaggregated revenue | |||
Concentration (as a percent) | 20.00% | 20.00% | 18.00% |
Skincare | |||
Disaggregated revenue | |||
Concentration (as a percent) | 17.00% | 16.00% | 14.00% |
Fragrance and bath | |||
Disaggregated revenue | |||
Concentration (as a percent) | 14.00% | 12.00% | 9.00% |
Services | |||
Disaggregated revenue | |||
Concentration (as a percent) | 3.00% | 3.00% | 5.00% |
Accessories and other | |||
Disaggregated revenue | |||
Concentration (as a percent) | 3.00% | 4.00% | 3.00% |
Revenue - Deferred revenue (Det
Revenue - Deferred revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 29, 2022 | Jan. 30, 2021 | |
Summary of changes in deferred revenue | ||
Balance at beginning of period | $ 269,032 | $ 230,011 |
Additions to contract liabilities | 261,139 | 200,267 |
Deductions to contract liabilities | (184,965) | (161,246) |
Balance at end of period | 345,206 | 269,032 |
Other amounts included in deferred revenue | $ 8,373 | $ 5,351 |
Impairment, restructuring and_2
Impairment, restructuring and other costs - Tabular disclosure (Details) $ in Thousands | 12 Months Ended | |||
Jan. 29, 2022USD ($) | Jan. 30, 2021USD ($) | Feb. 01, 2020USD ($) | Oct. 31, 2020store | |
Impairment, restructuring and other costs | ||||
Impairment of long-lived tangible and right-of-use assets | $ 41,948 | |||
Total | 114,322 | |||
Impairment, restructuring and other costs | ||||
Non-cash impairment charges | 72,533 | |||
Restructuring accrual recorded in accrued liabilities | $ 0 | 9,476 | ||
Restructuring and other | ||||
Impairment, restructuring and other costs | ||||
Non-cash impairment charges | $ 0 | $ 0 | ||
Store Closures during Fiscal 2020 | ||||
Impairment, restructuring and other costs | ||||
Impairment of long-lived tangible and right-of-use assets | 19,569 | |||
Lease termination costs | 7,443 | |||
Severance | 489 | |||
Total | 27,501 | |||
Impairment, restructuring and other costs | ||||
Number of store closings | store | 19 | |||
Suspension of Canadian Expansion | ||||
Impairment, restructuring and other costs | ||||
Impairment of long-lived tangible and right-of-use assets | 11,016 | |||
Lease termination costs | 17,388 | |||
Severance | 717 | |||
Total | 29,121 | |||
Other severance | ||||
Impairment, restructuring and other costs | ||||
Total | $ 15,752 |
Property and equipment and in_3
Property and equipment and internal use software (Details) - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Property and equipment and internal use software | ||
Property and equipment, gross | $ 2,633,011 | $ 2,567,816 |
Less: accumulated depreciation and amortization | (1,718,535) | (1,572,021) |
Property and equipment, net | 914,476 | 995,795 |
Equipment and fixtures | ||
Property and equipment and internal use software | ||
Property and equipment, gross | 1,118,312 | 1,083,509 |
Leasehold improvements | ||
Property and equipment and internal use software | ||
Property and equipment, gross | 813,068 | 782,036 |
Electronic equipment and software | ||
Property and equipment and internal use software | ||
Property and equipment, gross | 609,734 | 649,603 |
Construction-in-progress | ||
Property and equipment and internal use software | ||
Property and equipment, gross | $ 91,897 | $ 52,668 |
Property and equipment and in_4
Property and equipment and internal use software - Cloud computing software (Details) - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 |
Selling, general and administrative expenses | |||
Property and equipment and internal use software | |||
Amount of expense related to cloud computing arrangments | $ 62,215 | $ 49,615 | $ 38,034 |
Prepaid expenses and other current assets | |||
Property and equipment and internal use software | |||
Capitalized costs related to cloud computing arrangements | 23,379 | 18,773 | |
Other long-term assets | |||
Property and equipment and internal use software | |||
Capitalized costs related to cloud computing arrangements | $ 22,596 | $ 16,694 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 29, 2022 | Jan. 30, 2021 | |
Changes in carrying amounts of goodwill | ||
Goodwill at beginning of period | $ 10,870 | $ 10,870 |
Acquisitions | 0 | 0 |
Goodwill at end of period | $ 10,870 | $ 10,870 |
Other intangible assets - Subje
Other intangible assets - Subject to amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Other intangible assets | |||
Amortization expense related to intangible assets | $ 926 | $ 926 | $ 926 |
Developed technology | |||
Other intangible assets | |||
Weighted-average remaining useful life | 1 year 8 months 12 days | ||
Gross carrying value | $ 4,631 | 4,631 | |
Accumulated amortization | (3,093) | (2,166) | |
Net | $ 1,538 | $ 2,465 |
Leases - Lease costs (Details)
Leases - Lease costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Lease Costs | |||
Total lease cost | $ 388,550 | $ 385,040 | $ 365,810 |
Cost of sales | |||
Lease Costs | |||
Operating lease cost | 311,546 | 304,743 | 289,007 |
Variable lease cost | 77,431 | 80,557 | 77,142 |
Selling, general and administrative expenses | |||
Lease Costs | |||
Short-term lease cost | 408 | 567 | 352 |
Net sales | |||
Lease Costs | |||
Sublease income | $ (835) | $ (827) | $ (691) |
Leases - Weighted- average rema
Leases - Weighted- average remaining lease term and discount rate (Details) - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Leases | ||
Initial lease term | 10 years | |
Operating lease assets | $ 1,482,256 | $ 1,504,614 |
Current operating lease liabilities | 274,118 | 253,415 |
Non-current operating lease liabilities | 1,572,638 | 1,643,386 |
Total lease liabilities | $ 1,846,756 | $ 1,896,801 |
Weighted-average remaining lease term | 6 years 10 months 24 days | 7 years 3 months 18 days |
Weighted-average discount rate | 3.30% | 3.60% |
Leases - Cash flow information
Leases - Cash flow information and non-cash activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Leases | |||
Cash paid for operating lease liabilities | $ 368,498 | $ 354,133 | $ 338,942 |
Operating lease assets obtained in exchange for operating lease liabilities (non-cash) | 253,870 | 255,966 | 355,286 |
Excluded cash received for tenant incentives | $ 28,591 | $ 33,092 | $ 71,294 |
Leases - Maturity of lease liab
Leases - Maturity of lease liabilities (Details) - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Maturity of lease liabilities | ||
2022 | $ 330,260 | |
2023 | 349,856 | |
2024 | 318,507 | |
2025 | 289,025 | |
2026 | 250,945 | |
2027 and thereafter | 517,798 | |
Total lease payments | 2,056,391 | |
Less: Imputed interest | (209,635) | |
Present value of operating lease liabilities | 1,846,756 | $ 1,896,801 |
Minimum lease payments for leases signed but not yet commenced | $ 73,646 |
Commitments and contingencies -
Commitments and contingencies - Contractual obligations (Details) $ in Thousands | 12 Months Ended |
Jan. 29, 2022USD ($) | |
Commitments and contingencies | |
Contractual obligations related to commitments | $ 51,056 |
Payments under commitments | $ 17,370 |
Agreement term | 3 years |
Accrued liabilities (Details)
Accrued liabilities (Details) - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Accrued liabilities | ||
Accrued payroll, bonus, and employee benefits | $ 158,017 | $ 143,992 |
Accrued advertising | 49,477 | 23,543 |
Accrued taxes | 43,464 | 36,787 |
Other accrued liabilities | 113,839 | 92,012 |
Accrued liabilities | 364,797 | 296,334 |
Deferred social security tax payments related to the CARES Act | $ 0 | $ 43,845 |
Income taxes - Components of Pr
Income taxes - Components of Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Current: | |||
Federal | $ 280,300 | $ 67,724 | $ 163,596 |
State | 55,358 | 11,534 | 31,106 |
Total current | 335,658 | 79,258 | 194,702 |
Deferred: | |||
Federal | (22,936) | (19,631) | 1,182 |
State | (2,730) | (4,377) | 4,321 |
Total deferred | (25,666) | (24,008) | 5,503 |
Provision for income taxes | $ 309,992 | $ 55,250 | $ 200,205 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of Federal Statutory Rate to Effective Tax Rate (Details) | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Reconciliation of federal statutory rate to effective tax rate | |||
Federal statutory rate (as a percent) | 21.00% | 21.00% | 21.00% |
State effective rate, net of federal tax benefit (as a percent) | 3.30% | 2.90% | 3.10% |
Executive compensation limitation (as a percent) | 0.50% | 1.20% | 0.20% |
Excess deduction of stock compensation (as a percent) | (0.50%) | (0.30%) | (1.10%) |
Other (as a percent) | (0.40%) | (0.90%) | (1.10%) |
Effective tax rate (as a percent) | 23.90% | 23.90% | 22.10% |
Income taxes - Components of De
Income taxes - Components of Deferred Tax Assets and Liabilities and Credit Carryforwards (Details) - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Deferred tax assets: | ||
Operating lease liability | $ 471,687 | $ 484,780 |
Reserves not currently deductible | 47,059 | 32,590 |
Accrued liabilities | 33,289 | 31,056 |
Employee benefits | 24,355 | 23,687 |
Property and equipment | 1,710 | |
Credit carryforwards | 334 | 291 |
NOL carryforwards | 303 | 255 |
Inventory valuation | 8,386 | |
Total deferred tax assets | 578,737 | 581,045 |
Deferred tax liabilities: | ||
Operating lease asset | 561,137 | 561,605 |
Prepaid expenses | 45,815 | 46,013 |
Receivables not currently includable | 5,398 | 3,720 |
Inventory valuation | 3,490 | |
Other | 2,224 | 1,669 |
Intangibles | 366 | 585 |
Property and equipment | 32,812 | |
Total deferred tax liabilities | 618,430 | 646,404 |
Net deferred tax liability | (39,693) | $ (65,359) |
Credit carryforwards | ||
Credit carryforwards for state income tax purposes | 423 | |
Federal | ||
Credit carryforwards | ||
Amount of net operating loss carryforwards that do not expire | 825 | |
State | ||
Credit carryforwards | ||
Amount of net operating loss carryforwards that expire | 95 | |
Amount of net operating loss carryforwards that do not expire | $ 163 |
Income taxes - Unrecognized Tax
Income taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 29, 2022 | Jan. 30, 2021 | |
Reconciliation of unrecognized tax benefits, excluding interest and penalties | ||
Balance at beginning of the year | $ 2,783 | $ 3,536 |
Increase due to a prior year tax position | 1,219 | 224 |
Decrease due to a prior year tax position | (613) | (977) |
Balance at the end of the year | $ 3,389 | $ 2,783 |
Debt (Details)
Debt (Details) $ in Thousands | 12 Months Ended | |
Jan. 29, 2022USD ($) | Jan. 30, 2021USD ($) | |
Notes payable | ||
Outstanding borrowings under credit facility | $ 0 | $ 0 |
Revolving Credit Facility | ||
Notes payable | ||
Outstanding borrowings under credit facility | $ 0 | $ 0 |
Weighted average interest rate | 1.56% | |
Amendment No. 1 to the Second Amended and Restated Loan Agreement | ||
Notes payable | ||
Unused line fee (as a percent) | 0.20% | |
Amendment No. 1 to the Second Amended and Restated Loan Agreement | Minimum | ||
Notes payable | ||
Fixed charge coverage ratio covenant | 1 | |
Amendment No. 1 to the Second Amended and Restated Loan Agreement | London Interbank Offered Rate (LIBOR) | Minimum | ||
Notes payable | ||
Interest rate margin (as a percent) | 1.125% | |
Amendment No. 1 to the Second Amended and Restated Loan Agreement | London Interbank Offered Rate (LIBOR) | Maximum | ||
Notes payable | ||
Interest rate margin (as a percent) | 1.25% | |
Amendment No. 1 to the Second Amended and Restated Loan Agreement | Base Rate | Minimum | ||
Notes payable | ||
Interest rate margin (as a percent) | 0.00% | |
Amendment No. 1 to the Second Amended and Restated Loan Agreement | Base Rate | Maximum | ||
Notes payable | ||
Interest rate margin (as a percent) | 0.125% | |
Amendment No. 1 to the Second Amended and Restated Loan Agreement | Revolving Credit Facility | ||
Notes payable | ||
Maximum borrowing capacity | $ 1,000,000 | |
Contingent increase to revolving facility | 100,000 | |
Amendment No. 1 to the Second Amended and Restated Loan Agreement | Letters of credit | ||
Notes payable | ||
Maximum borrowing capacity | $ 50,000 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Fair Value, Inputs, Level 2 | Non-qualified deferred compensation plan | ||
Fair value measurements | ||
Fair value of financial liabilities | $ 40,839 | $ 32,909 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 30, 2021 | Jan. 29, 2022 | |
Investments | ||
Contributions of capital to equity method investments | $ 5,665 | |
Investment tax credits | 1,689 | |
Other investments | $ 4,297 | |
Renewable energy projects | ||
Investments | ||
Equity method investments | $ 3,174 | $ 2,671 |
Stock-based compensation (Detai
Stock-based compensation (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Stock-based compensation | |||
Cash received from stock option exercises | $ 40,386 | $ 12,229 | $ 43,780 |
Performance Based Restricted Stock Units | |||
Stock-based compensation | |||
Vesting period | 3 years | ||
Compensation expense for liability awards | $ 7,671 | 879 | 597 |
Amended and Restated 2011 Incentive Award Plan | |||
Stock-based compensation | |||
Vesting period | 4 years | ||
Vesting per year (as a percent) | 25.00% | ||
Award expiration period | 10 years | ||
Common stock reserved for issuance upon grant or exercise of awards (in shares) | 2,577 | ||
Compensation expense for liability awards | $ 47,259 | 27,583 | 25,642 |
Cash received from stock option exercises | 40,386 | 12,229 | 43,780 |
Income tax benefit | 7,088 | 750 | 11,600 |
Amended and Restated 2011 Incentive Award Plan | Stock options | |||
Stock-based compensation | |||
Compensation expense for liability awards | 11,245 | 10,757 | 8,660 |
Amended and Restated 2011 Incentive Award Plan | Restricted stock units | |||
Stock-based compensation | |||
Compensation expense for liability awards | 19,286 | 16,608 | 12,762 |
Amended and Restated 2011 Incentive Award Plan | Performance Based Restricted Stock Units | |||
Stock-based compensation | |||
Compensation expense for liability awards | $ 16,728 | $ 218 | $ 4,220 |
Stock-based compensation - Assu
Stock-based compensation - Assumptions to Estimate Fair Value of Stock Options (Details) - Stock options | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Weighted-average assumptions to estimate fair value | |||
Volatility rate (as a percent) | 46.90% | 43.00% | 31.00% |
Average risk-free interest rate (as a percent) | 0.40% | 0.30% | 2.30% |
Average expected life | 3 years 10 months 24 days | 3 years 4 months 24 days | 3 years 6 months |
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Stock-based compensation - Stoc
Stock-based compensation - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Share-based compensation | |||
Weighted-average grant date fair value (in dollars per share) | $ 109.84 | $ 54.40 | $ 89.91 |
Fair value of options vested | $ 10,417 | $ 9,741 | $ 9,143 |
Intrinsic value of options exercised | 39,489 | $ 11,304 | $ 51,650 |
Stock options | |||
Unrecognized compensation expense | $ 11,623 | ||
Weighted-average recognition period of unrecognized compensation expense | 2 years | ||
Number of options | |||
Beginning of year (in shares) | 671 | 539 | 755 |
Granted (in shares) | 61 | 248 | 97 |
Exercised (in shares) | (224) | (90) | (285) |
Forfeited/expired (in shares) | (10) | (26) | (28) |
End of year (in shares) | 498 | 671 | 539 |
Exercisable at end of year (in shares) | 179 | 236 | 172 |
Vested and Expected to vest (in shares) | 474 | 639 | 510 |
Weighted average exercise price | |||
Beginning of year (in dollars per share) | $ 208.47 | $ 212.58 | $ 174.34 |
Granted (in dollars per share) | 306.96 | 174.45 | 348.73 |
Exercised (in dollars per share) | 180.05 | 135.70 | 153.64 |
Forfeited/expired (in dollars per share) | 225.24 | 219.47 | 263.34 |
End of year (in dollars per share) | 232.85 | 208.47 | 212.58 |
Exercisable at end of year (in dollars per share) | 248.11 | 209.03 | 159.39 |
Vested and Expected to vest (in dollars per share) | $ 233.28 | $ 208.49 | $ 211.14 |
Stock-based compensation - Info
Stock-based compensation - Information Related to Stock Options Plans Based on Ranges of Exercise Prices (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Jan. 29, 2022USD ($)$ / sharesshares | |
Information related to options outstanding and options exercisable based on ranges of exercise prices | |
Aggregate intrinsic value of outstanding options (in dollars) | $ | $ 62,762 |
Aggregate intrinsic value of exercisable options (in dollars) | $ | $ 19,793 |
Sale price of common stock (in dollars per share) | $ 358.83 |
$74.91 - $127.15 | |
Information related to options outstanding and options exercisable based on ranges of exercise prices | |
Range of Exercise Prices, lower range limit (in dollars per share) | 74.91 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 127.15 |
Options outstanding, Number of options (in shares) | shares | 11 |
Options outstanding, Weighted-average remaining contractual life | 2 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 92.99 |
Options exercisable, Number of options (in shares) | shares | 11 |
Options exercisable, Weighted-average remaining contractual life | 2 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 92.99 |
$127.16 - $153.87 | |
Information related to options outstanding and options exercisable based on ranges of exercise prices | |
Range of Exercise Prices, lower range limit (in dollars per share) | 127.16 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 153.87 |
Options outstanding, Number of options (in shares) | shares | 1 |
Options outstanding, Weighted-average remaining contractual life | 3 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 152.27 |
Options exercisable, Number of options (in shares) | shares | 1 |
Options exercisable, Weighted-average remaining contractual life | 3 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 152.27 |
$153.88 - $174.45 | |
Information related to options outstanding and options exercisable based on ranges of exercise prices | |
Range of Exercise Prices, lower range limit (in dollars per share) | 153.88 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 174.45 |
Options outstanding, Number of options (in shares) | shares | 213 |
Options outstanding, Weighted-average remaining contractual life | 8 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 174.45 |
Options exercisable, Number of options (in shares) | shares | 27 |
Options exercisable, Weighted-average remaining contractual life | 8 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 174.45 |
$174.46 - $204.27 | |
Information related to options outstanding and options exercisable based on ranges of exercise prices | |
Range of Exercise Prices, lower range limit (in dollars per share) | 174.46 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 204.27 |
Options outstanding, Number of options (in shares) | shares | 77 |
Options outstanding, Weighted-average remaining contractual life | 6 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 203.15 |
Options exercisable, Number of options (in shares) | shares | 44 |
Options exercisable, Weighted-average remaining contractual life | 6 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 202.31 |
$204.28 - $281.53 | |
Information related to options outstanding and options exercisable based on ranges of exercise prices | |
Range of Exercise Prices, lower range limit (in dollars per share) | 204.28 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 281.53 |
Options outstanding, Number of options (in shares) | shares | 57 |
Options outstanding, Weighted-average remaining contractual life | 5 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 281.53 |
Options exercisable, Number of options (in shares) | shares | 57 |
Options exercisable, Weighted-average remaining contractual life | 5 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 281.53 |
$281.54 - $365.13 | |
Information related to options outstanding and options exercisable based on ranges of exercise prices | |
Range of Exercise Prices, lower range limit (in dollars per share) | 281.54 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 365.13 |
Options outstanding, Number of options (in shares) | shares | 139 |
Options outstanding, Weighted-average remaining contractual life | 8 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 330.98 |
Options exercisable, Number of options (in shares) | shares | 39 |
Options exercisable, Weighted-average remaining contractual life | 7 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 348.73 |
$74.91 - $365.13 | |
Information related to options outstanding and options exercisable based on ranges of exercise prices | |
Range of Exercise Prices, lower range limit (in dollars per share) | 74.91 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 365.13 |
Options outstanding, Number of options (in shares) | shares | 498 |
Options outstanding, Weighted-average remaining contractual life | 7 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 232.85 |
Options exercisable, Number of options (in shares) | shares | 179 |
Options exercisable, Weighted-average remaining contractual life | 6 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 248.11 |
Stock-based compensation - Rest
Stock-based compensation - Restricted Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Board of Directors | |||
Restricted stock units | |||
Vesting period | 1 year | ||
Restricted stock units | |||
Restricted stock units | |||
Unrecognized compensation cost | $ 22,179 | ||
Weighted-average recognition period of unrecognized compensation expense | 1 year 6 months | ||
Number of shares | |||
Beginning of year (in shares) | 253 | 159 | 168 |
Granted (in shares) | 61 | 163 | 53 |
Vested (in shares) | (76) | (38) | (46) |
Forfeited (in shares) | (17) | (31) | (16) |
End of year (in shares) | 221 | 253 | 159 |
Expected to vest (in shares) | 205 | 234 | 147 |
Weighted average grant date fair value | |||
Beginning of year (in dollars per share) | $ 210.46 | $ 259.21 | $ 220.68 |
Granted (in dollars per share) | 312.42 | 179.72 | 335.28 |
Vested (in dollars per share) | 209.88 | 276.51 | 207.77 |
Forfeited (in dollars per share) | 233.94 | 218.40 | 259.65 |
End of year (in dollars per share) | 236.95 | 210.46 | 259.21 |
Expected to vest (in dollars per share) | $ 236.95 | $ 210.46 | $ 259.21 |
Restricted stock units | Certain employees | |||
Restricted stock units | |||
Vesting period | 3 years |
Stock-based compensation - Perf
Stock-based compensation - Performance-based Restricted Stock Units (Details) - Performance Based Restricted Stock Units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Performance-based restricted stock units | |||
Vesting period | 3 years | ||
Performance period | 2 years | ||
Unrecognized compensation cost | $ 13,990 | ||
Weighted-average recognition period of unrecognized compensation expense | 1 year 6 months | ||
Compensation expense for liability awards | $ 7,671 | $ 879 | $ 597 |
Number of shares | |||
Beginning of year (in shares) | 37 | 62 | 94 |
Granted (in shares) | 74 | 21 | |
Change in performance award payout (in shares) | (7) | (5) | (3) |
Vested (in shares) | (47) | (14) | (43) |
Forfeited (in shares) | (3) | (6) | (7) |
End of year (in shares) | 54 | 37 | 62 |
Expected to vest (in shares) | 50 | 35 | 57 |
Weighted average grant date fair value | |||
Beginning of year (in dollars per share) | $ 271.88 | $ 267.60 | $ 214.64 |
Granted (in dollars per share) | 326.99 | 348.73 | |
Change in performance award payout (in dollars per share) | 348.73 | 204.27 | 281.53 |
Vested (in dollars per share) | 295.49 | 281.53 | 191.76 |
Forfeited (in dollars per share) | 319.71 | 263.38 | 258.80 |
End of year (in dollars per share) | 314.30 | 271.88 | 267.60 |
Expected to vest (in dollars per share) | $ 314.30 | $ 271.88 | $ 267.60 |
Maximum | |||
Number of shares | |||
Vested (in shares) | (92) |
Stock-based compensation - Mark
Stock-based compensation - Market based restricted stock units (Details) shares in Thousands | 12 Months Ended |
Feb. 02, 2019shares | |
Market-based restricted stock units | Chief Executive Officer | |
Stock-based compensation | |
Granted (in shares) | 28 |
Net income per common share - R
Net income per common share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Numerator: | |||
Net income | $ 985,837 | $ 175,835 | $ 705,945 |
Denominator: | |||
Weighted-average common shares - Basic | 54,482 | 56,351 | 57,840 |
Dilutive effect of stock options and non-vested stock | 359 | 207 | 265 |
Weighted-average common shares - Diluted | 54,841 | 56,558 | 58,105 |
Net income per common share: | |||
Basic | $ 18.09 | $ 3.12 | $ 12.21 |
Diluted | $ 17.98 | $ 3.11 | $ 12.15 |
Net income per common share - A
Net income per common share - Anti-dilutive Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Net income per common share | |||
Employee stock options and restricted stock units excluded from the computation of net income per common share | 205 | 211 | 298 |
Employee benefit plans (Details
Employee benefit plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Defined contribution plans | |||
Total expense recorded | $ 19,296 | $ 16,878 | $ 16,556 |
Deferred compensation liability | 40,839 | 32,909 | |
Deferred compensation plan assets | $ 38,409 | $ 33,223 | |
Qualified defined contribution plan | |||
Defined contribution plans | |||
Company match (as a percent) | 100.00% | 100.00% | 100.00% |
Eligible employee compensation for company match (as a percent) | 3.00% | 3.00% | 3.00% |
Company match on additional employee contributions (as a percent) | 50.00% | 50.00% | 50.00% |
Eligible additional employee contribution to receive additional company match (as a percent) | 2.00% | 2.00% | 2.00% |
Non-qualified deferred compensation plan | |||
Defined contribution plans | |||
Company match (as a percent) | 100.00% | 100.00% | 100.00% |
Eligible employee compensation for company match (as a percent) | 3.00% | 3.00% | 3.00% |
Share repurchase program (Detai
Share repurchase program (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share repurchase program | |||||
Shares repurchased (in shares) | 4,250 | 475 | 2,321 | ||
Common stock repurchased and retired | $ 1,521,925 | $ 114,895 | $ 680,979 | ||
2019 Share Repurchase Program | |||||
Share repurchase program | |||||
Authorized amount of share repurchase program | $ 875,000 | ||||
Remaining authorized amount from earlier share repurchase program | $ 25,435 | ||||
2020 Share Repurchase Program | |||||
Share repurchase program | |||||
Authorized amount of share repurchase program | $ 1,600,000 | ||||
Remaining authorized amount from earlier share repurchase program | $ 177,805 |
Subsequent event (Details)
Subsequent event (Details) $ in Thousands | Mar. 07, 2022USD ($) |
2022 Share Repurchase Program | |
Subsequent event | |
Authorized amount of share repurchase program | $ 2,000,000 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Allowance for doubtful accounts | |||
Valuation and Qualifying Accounts | |||
Balance at beginning of period | $ 768 | $ 1,363 | $ 651 |
Charged to costs and expenses | 388 | 22 | 1,094 |
Deductions | (151) | (617) | (382) |
Balance at end of period | 1,005 | 768 | 1,363 |
Inventory - Lower of Cost or Market Reserve [Member] | |||
Valuation and Qualifying Accounts | |||
Balance at beginning of period | 52,860 | 46,941 | 36,640 |
Charged to costs and expenses | 9,525 | 42,634 | 50,285 |
Deductions | (35,503) | (36,715) | (39,984) |
Balance at end of period | $ 26,882 | $ 52,860 | $ 46,941 |