Ulta Beauty (ULTA) 10-Q 26 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 30, 2022	May 23, 2022
Cover [Abstract]
Entity Registrant Name	ULTA BEAUTY, INC.
Document Quarterly Report	true
Document Transition Report	false
Entity Central Index Key	0001403568
Document Type	10-Q
Document Period End Date	Apr. 30, 2022
Amendment Flag	false
Current Fiscal Year End Date	--01-28
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., 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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		51,818,071
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Trading Symbol	ULTA

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 30, 2022	Jan. 29, 2022	May 01, 2021
Current assets:
Cash and cash equivalents	$ 654,486	$ 431,560	$ 947,456
Receivables, net	192,754	233,682	154,342
Merchandise inventories, net	1,570,552	1,499,218	1,353,565
Prepaid expenses and other current assets	114,075	110,814	108,393
Prepaid income taxes		5,909
Total current assets	2,531,867	2,281,183	2,563,756
Property and equipment, net	909,543	914,476	960,440
Operating lease assets	1,488,040	1,482,256	1,487,616
Goodwill	10,870	10,870	10,870
Other intangible assets, net	1,307	1,538	2,233
Deferred compensation plan assets	35,978	38,409	34,279
Other long-term assets	34,431	35,647	28,350
Total assets	5,012,036	4,764,379	5,087,544
Current liabilities:
Accounts payable	585,500	552,730	552,837
Accrued liabilities	305,000	364,797	322,676
Deferred revenue	324,694	353,579	270,090
Current operating lease liabilities	276,440	274,118	263,200
Accrued income taxes	108,113	12,786	113,960
Total current liabilities	1,599,747	1,558,010	1,522,763
Non-current operating lease liabilities	1,568,356	1,572,638	1,613,309
Deferred income taxes	40,702	39,693	66,483
Other long-term liabilities	57,611	58,665	40,272
Total liabilities	3,266,416	3,229,006	3,242,827
Commitments and contingencies (Note 6)
Stockholders' equity:
Common stock, $0.01 par value, 400,000 shares authorized; 52,790, 53,049, and 55,803 shares issued; 52,038, 52,311, and 55,090 shares outstanding; at April 30, 2022 (unaudited), January 29, 2022, and May 1, 2021 (unaudited), respectively	528	530	558
Treasury stock-common, at cost	(58,650)	(53,478)	(44,567)
Additional paid-in capital	951,802	934,945	861,312
Retained earnings	851,940	653,376	1,027,414
Total stockholders' equity	1,745,620	1,535,373	1,844,717
Total liabilities and stockholders' equity	$ 5,012,036	$ 4,764,379	$ 5,087,544

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Apr. 30, 2022	Jan. 29, 2022	May 01, 2021
Consolidated Balance Sheets
Common stock, par value	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	400,000	400,000	400,000
Common stock, shares issued	52,790	53,049	55,803
Common stock, shares outstanding	52,038	52,311	55,090

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Consolidated Statements of Income (Unaudited)
Net sales	$ 2,345,901	$ 1,938,519
Cost of sales	1,404,875	1,184,731
Gross profit	941,026	753,788
Selling, general and administrative expenses	500,970	443,875
Pre-opening expenses	2,348	4,589
Operating income	437,708	305,324
Interest expense, net	401	358
Income before income taxes	437,307	304,966
Income tax expense	105,912	74,677
Net income	$ 331,395	$ 230,289
Net income per common share:
Basic	$ 6.34	$ 4.13
Diluted	$ 6.30	$ 4.10
Weighted average common shares outstanding:
Basic	52,250	55,795
Diluted	52,582	56,172

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Operating activities
Net income	$ 331,395	$ 230,289
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	62,839	70,599
Non-cash lease expense	72,192	68,881
Deferred income taxes	1,009	1,124
Stock-based compensation expense	10,356	8,978
Loss on disposal of property and equipment	1,002	1,089
Change in operating assets and liabilities:
Receivables	40,928	38,767
Merchandise inventories	(71,334)	(185,350)
Prepaid expenses and other current assets	(3,261)	(991)
Income taxes	101,236	71,431
Accounts payable	42,586	76,580
Accrued liabilities	(57,214)	23,209
Deferred revenue	(28,885)	(4,293)
Operating lease liabilities	(79,936)	(72,175)
Other assets and liabilities	3,390	1,929
Net cash provided by operating activities	426,303	330,067
Investing activities
Capital expenditures	(71,076)	(34,563)
Other investments	(797)
Net cash used in investing activities	(71,873)	(34,563)
Financing activities
Repurchase of common shares	(132,834)	(392,309)
Stock options exercised	6,502	5,032
Purchase of treasury shares	(5,172)	(6,766)
Net cash used in financing activities	(131,504)	(394,043)
Effect of exchange rate changes on cash and cash equivalents		(56)
Net increase (decrease) in cash and cash equivalents	222,926	(98,595)
Cash and cash equivalents at beginning of period	431,560	1,046,051
Cash and cash equivalents at end of period	654,486	947,456
Supplemental information
Cash paid for interest	524	526
Income taxes paid, net of refunds	3,357	1,725
Non-cash capital expenditures	$ 27,475	$ 22,825

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock	Treasury - Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income	Total
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)
Increase (Decrease) in Stockholders' Equity
Net income				230,289		230,289
Stock-based compensation			8,978			8,978
Foreign currency translation adjustments					$ (56)	(56)
Stock options exercised and other awards	$ 1		5,031			5,032
Stock options exercised and other awards (in shares)	94
Purchase of treasury shares		$ (6,766)				(6,766)
Purchase of treasury shares (in shares)		(21)
Repurchase of common shares	$ (12)			(392,297)		(392,309)
Repurchase of common shares (in shares)	(1,243)
Balance at May. 01, 2021	$ 558	$ (44,567)	861,312	1,027,414		$ 1,844,717
Balance (in shares) at May. 01, 2021	55,803	(713)				55,090
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
Increase (Decrease) in Stockholders' Equity
Net income				331,395		$ 331,395
Stock-based compensation			10,356			10,356
Stock options exercised and other awards	$ 1		6,501			6,502
Stock options exercised and other awards (in shares)	73
Purchase of treasury shares		$ (5,172)				(5,172)
Purchase of treasury shares (in shares)		(14)
Repurchase of common shares	$ (3)			(132,831)		(132,834)
Repurchase of common shares (in shares)	(332)
Balance at Apr. 30, 2022	$ 528	$ (58,650)	$ 951,802	$ 851,940		$ 1,745,620
Balance (in shares) at Apr. 30, 2022	52,790	(752)				52,038

Business and basis of presentat

Business and basis of presentation	3 Months Ended
	Apr. 30, 2022
Business and basis of presentation
Business and basis of presentation	1. Business and basis of presentation Ulta Beauty, Inc. was founded in 1990 to operate specialty retail stores selling cosmetics, fragrance, haircare and skincare products, and related accessories and services. The stores also feature full-service salons. As used in these notes and throughout this Quarterly Report on Form 10-Q, all references to “we,” “us,” “our,” “Ulta Beauty,” or the “Company” refer to Ulta Beauty, Inc. and its consolidated subsidiaries. As of April 30, 2022, the Company operated 1,318 stores across 50 states, as shown in the table below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ ​ ​ Number of Location stores Location stores Alabama ​ 24 ​ Montana ​ 6 Alaska ​ 3 ​ Nebraska ​ 5 Arizona ​ 30 ​ Nevada ​ 16 Arkansas ​ 11 ​ New Hampshire ​ 8 California ​ 165 ​ New Jersey ​ 44 Colorado ​ 26 ​ New Mexico ​ 7 Connecticut ​ 19 ​ New York ​ 52 Delaware ​ 3 ​ North Carolina ​ 40 Florida ​ 90 ​ North Dakota ​ 3 Georgia ​ 42 ​ Ohio ​ 45 Hawaii ​ 4 ​ Oklahoma ​ 21 Idaho ​ 9 ​ Oregon ​ 16 Illinois ​ 55 ​ Pennsylvania ​ 45 Indiana ​ 24 ​ Rhode Island ​ 4 Iowa ​ 11 ​ South Carolina ​ 22 Kansas ​ 13 ​ South Dakota ​ 3 Kentucky ​ 15 ​ Tennessee ​ 28 Louisiana ​ 18 ​ Texas ​ 120 Maine ​ 3 ​ Utah ​ 14 Maryland ​ 28 ​ Vermont ​ 1 Massachusetts ​ 23 ​ Virginia ​ 32 Michigan ​ 49 ​ Washington ​ 36 Minnesota ​ 19 ​ West Virginia ​ 7 Mississippi ​ 11 ​ Wisconsin ​ 20 Missouri ​ 25 ​ Wyoming ​ 3 ​ ​ ​ ​ Total ​ 1,318 ​ The accompanying unaudited consolidated financial statements and related notes have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and the U.S. Securities and Exchange Commission’s Article 10, Regulation S-X. These financial statements were prepared on a consolidated basis to include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts, transactions, and unrealized profit were eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary to fairly state the financial position and results of operations and cash flows for the interim periods presented. The Company’s business is subject to seasonal fluctuation, with significant portions of net sales and net income being realized during the fourth quarter of the fiscal year due to the holiday selling season. The results for the 13 weeks ended April 30, 2022 are not necessarily indicative of the results to be expected for the fiscal year ending January 28, 2023, or for any other future interim period or for any future year, in particular as a result of the uncertainty around the continuing effects of the COVID-19 pandemic, geo-political events, and inflationary cost pressures on future periods. These unaudited interim consolidated financial statements and the related notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended January 29, 2022. All amounts are stated in thousands, with the exception of per share amounts and number of stores.

Summary of significant accounti

Summary of significant accounting policies	3 Months Ended
	Apr. 30, 2022
Summary of significant accounting policies
Summary of significant accounting policies	2. Summary of significant accounting policies Information regarding significant accounting policies is contained in Note 2, “Summary of significant accounting policies,” to the consolidated financial statements in the Annual Report on Form 10-K for the year ended January 29, 2022. Presented below and in the following notes is supplemental information that should be read in conjunction with “Notes to Consolidated Financial Statements” in the Annual Report. Fiscal quarter The Company’s quarterly periods are the 13 weeks ending on the Saturday closest to April 30, July 31, October 31, and January 31. The first quarter in fiscal 2022 and 2021 ended on April 30, 2022 and May 1, 2021, respectively. 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, geo-political events, and inflationary cost pressures, will be reflected in the consolidated financial statements in future periods.

Revenue

Revenue	3 Months Ended
	Apr. 30, 2022
Revenue
Revenue	3. Revenue Disaggregated revenue ​ The following table sets forth the approximate percentage of net sales by primary category: ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ April 30, ​ May 1, (Percentage of net sales) ​ 2022 ​ 2021 Cosmetics ​ 44% ​ 45% Haircare products and styling tools ​ 20% ​ 19% Skincare ​ 18% ​ 19% Fragrance and bath ​ 12% ​ 11% Services ​ 3% ​ 3% Accessories and other ​ 3% ​ 3% ​ ​ 100% ​ 100% ​ 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 the 13 weeks ended April 30, 2022 and May 1, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ April 30, ​ May 1, (In thousands) ​ 2022 ​ 2021 Beginning balance ​ $ 345,206 ​ $ 269,032 Additions to contract liabilities (1) ​ ​ 114,005 ​ ​ 97,681 Deductions to contract liabilities (2) ​ ​ (146,852) ​ ​ (113,541) Ending balance ​ $ 312,359 ​ $ 253,172 (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 $12,335 and $16,918 at April 30, 2022 and May 1, 2021, respectively. ​

Goodwill and other intangible a

Goodwill and other intangible assets	3 Months Ended
	Apr. 30, 2022
Goodwill and Other Intangible Assets
Goodwill and other intangible assets	4. Goodwill and other intangible assets Goodwill, which represents the excess of cost over the fair value of net assets acquired, was $10,870 at April 30, 2022, January 29, 2022, and May 1, 2021. No additional goodwill was recognized during the 13 weeks ended April 30, 2022. 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. 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. ​

Leases

Leases	3 Months Ended
	Apr. 30, 2022
Leases
Leases	5. 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. Lease cost 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 selling, general and administrative expenses. Operating lease cost from the control date through store opening date is classified within pre-opening expenses. The following table presents a summary of operating lease costs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ April 30, ​ May 1, (In thousands) ​ 2022 ​ 2021 Operating lease cost ​ $ 80,901 ​ $ 78,736 ​ Other information The following table presents supplemental disclosures of cash flow information related to operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ ​ April 30, ​ May 1, ​ (In thousands) 2022 ​ 2021 ​ Cash paid for operating lease liabilities (1) ​ $ 94,745 ​ $ 90,227 ​ Operating lease assets obtained in exchange for operating lease liabilities (non-cash) ​ ​ 77,976 ​ ​ 51,883 ​ (1) Excludes $6,701 and $7,986 related to cash received for tenant incentives for the 13 weeks ended April 30, 2022 and May 1, 2021, respectively.

Commitments and contingencies

Commitments and contingencies	3 Months Ended
	Apr. 30, 2022
Commitments and contingencies
Commitments and contingencies	6. Commitments and contingencies The Company is involved in various legal proceedings that are incidental to the conduct of the business including both class action and single plaintiff litigation. In the opinion of management, the amount of any liability with respect to these proceedings, either individually or in the aggregate, will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.

Debt

Debt	3 Months Ended
	Apr. 30, 2022
Debt
Debt	7. 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 April 30, 2022, January 29, 2022, and May 1, 2021, there were no borrowings outstanding under the credit facility. As of April 30, 2022, the Company was in compliance with all terms and covenants of the Loan Agreement.

Fair value measurements

Fair value measurements	3 Months Ended
	Apr. 30, 2022
Fair value measurements
Fair value measurements	8. Fair value measurements The carrying value of cash and cash equivalents, accounts receivable, and accounts payable approximates their estimated fair values due to the short maturities of these instruments. Fair value is measured using inputs from the three levels of the fair value hierarchy, which are described as follows: ● Level 1 – observable inputs such as quoted prices for identical instruments in active markets. ● Level 2 – inputs other than quoted prices in active markets that are observable either directly or indirectly through corroboration with observable market data. ● Level 3 – unobservable inputs in which there is little or no market data, which would require the Company to develop its own assumptions. ​ As of April 30, 2022, January 29, 2022 and May 1, 2021, there were liabilities related to the non-qualified deferred compensation plan included in other long-term liabilities on the consolidated balance sheets of $40,792, $40,839, and $35,449, respectively. The liabilities are 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.

Stock-based compensation

Stock-based compensation	3 Months Ended
	Apr. 30, 2022
Stock-based compensation
Stock-based compensation	9. Stock-based compensation 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ April 30, ​ May 1, ​ 2022 2021 Volatility rate 49.0% ​ 46.9% Average risk-free interest rate 2.4% ​ 0.4% Average expected life (in years) 3.4 3.9 Dividend yield 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 Company granted 48 and 61 stock options during the 13 weeks ended April 30, 2022 and May 1, 2021, respectively. Stock-based compensation expense for stock options was $2,342 and $2,897 for the 13 weeks ended April 30, 2022 and May 1, 2021, respectively. The weighted-average grant date fair value of these stock options was $149.14 and $109.72 for the 13 weeks ended April 30, 2022 and May 1, 2021, respectively. At April 30, 2022, there was approximately $16,062 of unrecognized stock-based compensation expense related to unvested stock options. There were 50 and 52 restricted stock units issued during the 13 weeks ended April 30, 2022 and May 1, 2021, respectively. Stock-based compensation expense for restricted stock units was $4,452 and $4,835 for the 13 weeks ended April 30, 2022 and May 1, 2021, respectively. At April 30, 2022, there was approximately $35,627 of unrecognized stock-based compensation expense related to restricted stock units. There were 37 and 46 performance-based restricted stock units issued during the 13 weeks ended April 30, 2022 and May 1, 2021. Stock-based compensation expense for performance-based restricted stock units was $3,562 and $1,246 for the 13 weeks ended April 30, 2022 and May 1, 2021, respectively. At April 30, 2022, there was approximately $25,921 of unrecognized stock-based compensation expense related to performance-based restricted stock units.

Income taxes

Income taxes	3 Months Ended
	Apr. 30, 2022
Income Taxes
Income taxes	10. Income taxes Income tax expense reflects the federal statutory tax rate and the weighted average state statutory tax rate for the states in which the Company operates stores. Income tax expense of $105,912 for the 13 weeks ended April 30, 2022 represents an effective tax rate of 24.2%, compared to $74,677 of income tax expense representing an effective tax rate of 24.5% for the 13 weeks ended May 1, 2021.

Net income per common share

Net income per common share	3 Months Ended
	Apr. 30, 2022
Net income per common share
Net income per common share	11. Net income per common share The following is a reconciliation of net income and the number of shares of common stock used in the computation of net income per basic and diluted common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ April 30, ​ May 1, (In thousands, except per share data) 2022 2021 Numerator: ​ ​ ​ ​ ​ ​ Net income $ 331,395 ​ $ 230,289 ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ ​ Weighted-average common shares – Basic ​ ​ 52,250 ​ ​ 55,795 Dilutive effect of stock options and non-vested stock ​ ​ 332 ​ ​ 377 Weighted-average common shares – Diluted ​ ​ 52,582 ​ ​ 56,172 ​ ​ ​ ​ ​ ​ ​ Net income per common share: ​ ​ ​ ​ ​ ​ Basic ​ $ 6.34 ​ $ 4.13 Diluted ​ $ 6.30 ​ $ 4.10 ​ The denominator for diluted net income per common share for the 13 weeks ended April 30, 2022 and May 1, 2021 excludes 143 and 262 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.

Share repurchase program

Share repurchase program	3 Months Ended
	Apr. 30, 2022
Share repurchase program
Share repurchase program	12. Share repurchase program In March 2020, the Board of Directors authorized a 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 earlier share repurchase program. The 2020 Share Repurchase Program did not have an expiration date but provided for suspension or discontinuation at any time. In March 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 revokes the previously authorized but unused amounts from the 2020 Share Repurchase Program. The 2022 Share Repurchase Program does not have an expiration date and may be suspended or discontinued at any time. ​ A summary of common stock repurchase activity is presented in the following table: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ April 30, ​ May 1, (In thousands) ​ 2022 2021 Shares repurchased ​ ​ 332 ​ ​ 1,243 Total cost of shares repurchased ​ $ 132,834 ​ $ 392,309 ​

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	3 Months Ended
	Apr. 30, 2022
Summary of significant accounting policies
Fiscal quarter	Fiscal quarter The Company’s quarterly periods are the 13 weeks ending on the Saturday closest to April 30, July 31, October 31, and January 31. The first quarter in fiscal 2022 and 2021 ended on April 30, 2022 and May 1, 2021, respectively.
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, geo-political events, and inflationary cost pressures, will be reflected in the consolidated financial statements in future periods.

Business and basis of present_2

Business and basis of presentation (Tables)	3 Months Ended
	Apr. 30, 2022
Business and basis of presentation
Schedule of stores operated by geographic area	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ ​ ​ Number of Location stores Location stores Alabama ​ 24 ​ Montana ​ 6 Alaska ​ 3 ​ Nebraska ​ 5 Arizona ​ 30 ​ Nevada ​ 16 Arkansas ​ 11 ​ New Hampshire ​ 8 California ​ 165 ​ New Jersey ​ 44 Colorado ​ 26 ​ New Mexico ​ 7 Connecticut ​ 19 ​ New York ​ 52 Delaware ​ 3 ​ North Carolina ​ 40 Florida ​ 90 ​ North Dakota ​ 3 Georgia ​ 42 ​ Ohio ​ 45 Hawaii ​ 4 ​ Oklahoma ​ 21 Idaho ​ 9 ​ Oregon ​ 16 Illinois ​ 55 ​ Pennsylvania ​ 45 Indiana ​ 24 ​ Rhode Island ​ 4 Iowa ​ 11 ​ South Carolina ​ 22 Kansas ​ 13 ​ South Dakota ​ 3 Kentucky ​ 15 ​ Tennessee ​ 28 Louisiana ​ 18 ​ Texas ​ 120 Maine ​ 3 ​ Utah ​ 14 Maryland ​ 28 ​ Vermont ​ 1 Massachusetts ​ 23 ​ Virginia ​ 32 Michigan ​ 49 ​ Washington ​ 36 Minnesota ​ 19 ​ West Virginia ​ 7 Mississippi ​ 11 ​ Wisconsin ​ 20 Missouri ​ 25 ​ Wyoming ​ 3 ​ ​ ​ ​ Total ​ 1,318

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Apr. 30, 2022
Revenue
Schedule of approximate percentage of net sales by primary category	​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ April 30, ​ May 1, (Percentage of net sales) ​ 2022 ​ 2021 Cosmetics ​ 44% ​ 45% Haircare products and styling tools ​ 20% ​ 19% Skincare ​ 18% ​ 19% Fragrance and bath ​ 12% ​ 11% Services ​ 3% ​ 3% Accessories and other ​ 3% ​ 3% ​ ​ 100% ​ 100%
Summary of changes in deferred revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ April 30, ​ May 1, (In thousands) ​ 2022 ​ 2021 Beginning balance ​ $ 345,206 ​ $ 269,032 Additions to contract liabilities (1) ​ ​ 114,005 ​ ​ 97,681 Deductions to contract liabilities (2) ​ ​ (146,852) ​ ​ (113,541) Ending balance ​ $ 312,359 ​ $ 253,172 (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 .

Leases (Tables)

Leases (Tables)	3 Months Ended
	Apr. 30, 2022
Leases
Summary of information related to lease costs for operating leases	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ April 30, ​ May 1, (In thousands) ​ 2022 ​ 2021 Operating lease cost ​ $ 80,901 ​ $ 78,736
Schedule of cash flow information related to operating leases	The following table presents supplemental disclosures of cash flow information related to operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ ​ April 30, ​ May 1, ​ (In thousands) 2022 ​ 2021 ​ Cash paid for operating lease liabilities (1) ​ $ 94,745 ​ $ 90,227 ​ Operating lease assets obtained in exchange for operating lease liabilities (non-cash) ​ ​ 77,976 ​ ​ 51,883 ​ (1) Excludes $6,701 and $7,986 related to cash received for tenant incentives for the 13 weeks ended April 30, 2022 and May 1, 2021, respectively.

Stock-based compensation (Table

Stock-based compensation (Tables)	3 Months Ended
	Apr. 30, 2022
Stock-based compensation
Schedule of weighted average assumptions to determine grant date fair value of employee stock options	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ April 30, ​ May 1, ​ 2022 2021 Volatility rate 49.0% ​ 46.9% Average risk-free interest rate 2.4% ​ 0.4% Average expected life (in years) 3.4 3.9 Dividend yield None None

Net income per common share (Ta

Net income per common share (Tables)	3 Months Ended
	Apr. 30, 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	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ April 30, ​ May 1, (In thousands, except per share data) 2022 2021 Numerator: ​ ​ ​ ​ ​ ​ Net income $ 331,395 ​ $ 230,289 ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ ​ Weighted-average common shares – Basic ​ ​ 52,250 ​ ​ 55,795 Dilutive effect of stock options and non-vested stock ​ ​ 332 ​ ​ 377 Weighted-average common shares – Diluted ​ ​ 52,582 ​ ​ 56,172 ​ ​ ​ ​ ​ ​ ​ Net income per common share: ​ ​ ​ ​ ​ ​ Basic ​ $ 6.34 ​ $ 4.13 Diluted ​ $ 6.30 ​ $ 4.10

Share repurchase program (Table

Share repurchase program (Tables)	3 Months Ended
	Apr. 30, 2022
Share repurchase program
Summary of the Company's common stock repurchase activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ April 30, ​ May 1, (In thousands) ​ 2022 2021 Shares repurchased ​ ​ 332 ​ ​ 1,243 Total cost of shares repurchased ​ $ 132,834 ​ $ 392,309

Business and basis of present_3

Business and basis of presentation (Details)	Apr. 30, 2022storestate
Stores by state
Number of stores operated	1,318
Number of states in which entity operates | state	50
Alabama
Stores by state
Number of stores operated	24
Alaska
Stores by state
Number of stores operated	3
Arizona
Stores by state
Number of stores operated	30
Arkansas
Stores by state
Number of stores operated	11
California
Stores by state
Number of stores operated	165
Colorado
Stores by state
Number of stores operated	26
Connecticut
Stores by state
Number of stores operated	19
Delaware
Stores by state
Number of stores operated	3
Florida
Stores by state
Number of stores operated	90
Georgia
Stores by state
Number of stores operated	42
Hawaii
Stores by state
Number of stores operated	4
Idaho
Stores by state
Number of stores operated	9
Illinois
Stores by state
Number of stores operated	55
Indiana
Stores by state
Number of stores operated	24
Iowa
Stores by state
Number of stores operated	11
Kansas
Stores by state
Number of stores operated	13
Kentucky
Stores by state
Number of stores operated	15
Louisiana
Stores by state
Number of stores operated	18
Maine
Stores by state
Number of stores operated	3
Maryland
Stores by state
Number of stores operated	28
Massachusetts
Stores by state
Number of stores operated	23
Michigan
Stores by state
Number of stores operated	49
Minnesota
Stores by state
Number of stores operated	19
Mississippi
Stores by state
Number of stores operated	11
Missouri
Stores by state
Number of stores operated	25
Montana
Stores by state
Number of stores operated	6
Nebraska
Stores by state
Number of stores operated	5
Nevada
Stores by state
Number of stores operated	16
New Hampshire
Stores by state
Number of stores operated	8
New Jersey
Stores by state
Number of stores operated	44
New Mexico
Stores by state
Number of stores operated	7
New York
Stores by state
Number of stores operated	52
North Carolina
Stores by state
Number of stores operated	40
North Dakota
Stores by state
Number of stores operated	3
Ohio
Stores by state
Number of stores operated	45
Oklahoma
Stores by state
Number of stores operated	21
Oregon
Stores by state
Number of stores operated	16
Pennsylvania
Stores by state
Number of stores operated	45
Rhode Island
Stores by state
Number of stores operated	4
South Carolina
Stores by state
Number of stores operated	22
South Dakota
Stores by state
Number of stores operated	3
Tennessee
Stores by state
Number of stores operated	28
Texas
Stores by state
Number of stores operated	120
Utah
Stores by state
Number of stores operated	14
Vermont
Stores by state
Number of stores operated	1
Virginia
Stores by state
Number of stores operated	32
Washington
Stores by state
Number of stores operated	36
West Virginia
Stores by state
Number of stores operated	7
Wisconsin
Stores by state
Number of stores operated	20
Wyoming
Stores by state
Number of stores operated	3

Summary of significant accoun_3

Summary of significant accounting policies (Details)	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Summary of significant accounting policies
Fiscal quarter	91 days	91 days

Revenue - Disaggregated revenue

Revenue - Disaggregated revenue (Details) - Sales Revenue - Product concentration	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Disaggregated revenue
Concentration (as a percent)	100.00%	100.00%
Cosmetics
Disaggregated revenue
Concentration (as a percent)	44.00%	45.00%
Haircare products and styling tools
Disaggregated revenue
Concentration (as a percent)	20.00%	19.00%
Skincare
Disaggregated revenue
Concentration (as a percent)	18.00%	19.00%
Fragrance and bath
Disaggregated revenue
Concentration (as a percent)	12.00%	11.00%
Services
Disaggregated revenue
Concentration (as a percent)	3.00%	3.00%
Accessories and other
Disaggregated revenue
Concentration (as a percent)	3.00%	3.00%

Revenue - Deferred revenue (Det

Revenue - Deferred revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Summary of changes in deferred revenue
Balance at beginning of period	$ 345,206	$ 269,032
Additions to contract liabilities	114,005	97,681
Deductions to contract liabilities	(146,852)	(113,541)
Balance at end of period	312,359	253,172
Other amounts included in deferred revenue	$ 12,335	$ 16,918

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Jan. 29, 2022	May 01, 2021
Goodwill and Other Intangible Assets
Goodwill	$ 10,870	$ 10,870	$ 10,870
Additional goodwill recognized	$ 0

Leases - Lease cost and Other i

Leases - Lease cost and Other information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Leases
Initial lease term	10 years
Operating lease cost	$ 80,901	$ 78,736
Cash paid for operating lease liabilities	94,745	90,227
Operating lease assets obtained in exchange for operating lease liabilities (non-cash)	77,976	51,883
Excluded cash received for tenant incentives	$ 6,701	$ 7,986

Debt (Details)

Debt (Details) $ in Thousands	3 Months Ended
	Apr. 30, 2022USD ($)	Jan. 29, 2022USD ($)	May 01, 2021USD ($)
Notes payable
Outstanding borrowings under credit facility	$ 0	$ 0	$ 0
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	Apr. 30, 2022	Jan. 29, 2022	May 01, 2021
Fair Value, Inputs, Level 2 | Non-qualified deferred compensation plan
Fair value measurements
Fair value of financial liabilities	$ 40,792	$ 40,839	$ 35,449

Stock-based compensation - Assu

Stock-based compensation - Assumptions to Estimate Fair Value of Stock Options (Details) - Stock options	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Weighted-average assumptions to estimate fair value
Volatility rate (as a percent)	49.00%	46.90%
Average risk-free interest rate (as a percent)	2.40%	0.40%
Average expected life	3 years 4 months 24 days	3 years 10 months 24 days
Dividend yield (as a percent)	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	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Share-based compensation
Weighted-average grant date fair value (in dollars per share)	$ 149.14	$ 109.72
Stock options
Stock compensation expense	$ 2,342	$ 2,897
Unrecognized compensation expense	$ 16,062
Number of options
Granted (in shares)	48	61

Stock-based compensation - Rest

Stock-based compensation - Restricted Stock Units (Details) - Restricted stock units - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Restricted stock units
Unrecognized compensation cost	$ 35,627
Stock compensation expense	$ 4,452	$ 4,835
Number of shares
Granted (in shares)	50	52

Stock-based compensation - Perf

Stock-based compensation - Performance-based Restricted Stock Units (Details) - Performance Based Restricted Stock Units - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Performance-based restricted stock units
Unrecognized compensation cost	$ 25,921
Stock compensation expense	$ 3,562	$ 1,246
Number of shares
Granted (in shares)	37	46

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Income taxes
Income tax expense	$ 105,912	$ 74,677
Effective tax rate (as a percent)	24.20%	24.50%

Net income per common share - R

Net income per common share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Numerator:
Net income	$ 331,395	$ 230,289
Denominator:
Weighted-average common shares - Basic	52,250	55,795
Dilutive effect of stock options and non-vested stock	332	377
Weighted-average common shares - Diluted	52,582	56,172
Net income per common share:
Basic	$ 6.34	$ 4.13
Diluted	$ 6.30	$ 4.10

Net income per common share - A

Net income per common share - Anti-dilutive Shares (Details) - shares shares in Thousands	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Net income per common share
Employee stock options and restricted stock units excluded from the computation of net income per common share	143	262

Share repurchase program (Detai

Share repurchase program (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2022	May 01, 2021	Mar. 31, 2022	Mar. 12, 2020
Share repurchase program
Common stock repurchased and retired	$ 132,834	$ 392,309
Share Repurchase Programs
Share repurchase program
Shares repurchased (in shares)	332	1,243
Common stock repurchased and retired	$ 132,834	$ 392,309
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
2022 Share Repurchase Program
Share repurchase program
Authorized amount of share repurchase program			$ 2,000,000