Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Aug. 03, 2024 | Aug. 26, 2024 | |
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 | Aug. 03, 2024 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-01 | |
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 $0.01 per share | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 47,114,727 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ULTA |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 |
Current assets: | |||
Cash and cash equivalents | $ 413,962 | $ 766,594 | $ 388,627 |
Receivables, net | 200,863 | 207,939 | 174,444 |
Merchandise inventories, net | 1,998,286 | 1,742,136 | 1,815,539 |
Prepaid expenses and other current assets | 132,023 | 115,598 | 110,524 |
Prepaid income taxes | 53,607 | 4,251 | 30,114 |
Total current assets | 2,798,741 | 2,836,518 | 2,519,248 |
Property and equipment, net | 1,225,850 | 1,182,335 | 1,073,144 |
Operating lease assets | 1,599,735 | 1,574,530 | 1,549,146 |
Goodwill | 10,870 | 10,870 | 10,870 |
Other intangible assets, net | 357 | 510 | 718 |
Deferred compensation plan assets | 46,280 | 43,516 | 40,087 |
Other long-term assets | 55,575 | 58,732 | 55,547 |
Total assets | 5,737,408 | 5,707,011 | 5,248,760 |
Current liabilities: | |||
Accounts payable | 566,904 | 544,001 | 521,315 |
Accrued liabilities | 348,042 | 382,468 | 328,247 |
Deferred revenue | 394,987 | 436,591 | 354,253 |
Current operating lease liabilities | 281,301 | 283,821 | 287,359 |
Accrued income taxes | 11,310 | ||
Total current liabilities | 1,591,234 | 1,658,191 | 1,491,174 |
Non-current operating lease liabilities | 1,647,698 | 1,627,271 | 1,593,040 |
Deferred income taxes | 88,461 | 85,921 | 56,012 |
Other long-term liabilities | 61,855 | 56,300 | 56,657 |
Total liabilities | 3,389,248 | 3,427,683 | 3,196,883 |
Commitments and contingencies (Note 6) | |||
Stockholders' equity: | |||
Common stock, $0.01 par value, 400,000 shares authorized; 48,143, 49,123, and 50,139 shares issued; 47,300, 48,324, and 49,341 shares outstanding; at August 3, 2024 (unaudited), February 3, 2024, and July 29, 2023 (unaudited), respectively | 481 | 491 | 501 |
Treasury stock-common, at cost | (106,491) | (83,032) | (82,229) |
Additional paid-in capital | 1,099,197 | 1,075,104 | 1,049,679 |
Retained earnings | 1,354,973 | 1,286,765 | 1,083,926 |
Total stockholders' equity | 2,348,160 | 2,279,328 | 2,051,877 |
Total liabilities and stockholders' equity | $ 5,737,408 | $ 5,707,011 | $ 5,248,760 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 |
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 | 48,143 | 49,123 | 50,139 |
Common stock, shares outstanding | 47,300 | 48,324 | 49,341 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Consolidated Statements of Income | ||||
Net sales | $ 2,552,087 | $ 2,529,809 | $ 5,277,935 | $ 5,164,072 |
Cost of sales | 1,573,910 | 1,536,197 | 3,229,978 | 3,115,603 |
Gross profit | 978,177 | 993,612 | 2,047,957 | 2,048,469 |
Selling, general and administrative expenses | 644,821 | 600,692 | 1,310,734 | 1,212,821 |
Pre-opening expenses | 4,155 | 1,278 | 7,074 | 1,936 |
Operating income | 329,201 | 391,642 | 730,149 | 833,712 |
Interest income, net | (4,526) | (4,449) | (11,426) | (11,797) |
Income before income taxes | 333,727 | 396,091 | 741,575 | 845,509 |
Income tax expense | 81,171 | 95,989 | 175,906 | 198,356 |
Net income | $ 252,556 | $ 300,102 | $ 565,669 | $ 647,153 |
Net income per common share: | ||||
Basic | $ 5.32 | $ 6.05 | $ 11.83 | $ 12.97 |
Diluted | $ 5.30 | $ 6.02 | $ 11.78 | $ 12.90 |
Weighted average common shares outstanding: | ||||
Basic | 47,505 | 49,617 | 47,815 | 49,885 |
Diluted | 47,667 | 49,849 | 48,022 | 50,157 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 03, 2024 | Jul. 29, 2023 | |
Operating activities | ||
Net income | $ 565,669 | $ 647,153 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 130,053 | 119,862 |
Non-cash lease expense | 163,481 | 152,867 |
Deferred income taxes | 2,540 | 666 |
Stock-based compensation expense | 19,272 | 21,539 |
Loss on disposal of property and equipment | 5,204 | 3,878 |
Change in operating assets and liabilities: | ||
Receivables | 7,076 | 24,978 |
Merchandise inventories | (256,150) | (212,088) |
Prepaid expenses and other current assets | (16,425) | 19,722 |
Income taxes | (60,666) | 8,194 |
Accounts payable | 29,715 | (38,752) |
Accrued liabilities | (33,634) | (102,763) |
Deferred revenue | (41,604) | (40,424) |
Operating lease liabilities | (170,779) | (163,527) |
Other assets and liabilities | 15,127 | (12,497) |
Net cash provided by operating activities | 358,879 | 428,808 |
Investing activities | ||
Capital expenditures | (186,301) | (204,748) |
Other investments | (5,091) | (1,687) |
Net cash used in investing activities | (191,392) | (206,435) |
Financing activities | ||
Repurchase of common shares | (501,768) | (559,011) |
Stock options exercised | 9,196 | 9,147 |
Purchase of treasury shares | (23,459) | (21,759) |
Debt issuance costs | (4,088) | |
Net cash used in financing activities | (520,119) | (571,623) |
Net decrease in cash and cash equivalents | (352,632) | (349,250) |
Cash and cash equivalents at beginning of period | 766,594 | 737,877 |
Cash and cash equivalents at end of period | 413,962 | 388,627 |
Supplemental information | ||
Income taxes paid, net of refunds | 233,249 | 189,166 |
Non-cash capital expenditures | $ 54,075 | $ 51,860 |
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 | Total |
Balance at Jan. 28, 2023 | $ 511 | $ (60,470) | $ 1,023,997 | $ 995,773 | $ 1,959,811 |
Balance (in shares) at Jan. 28, 2023 | 51,120 | ||||
Treasury--common stock (in shares) at Jan. 28, 2023 | (756) | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 347,051 | $ 347,051 | |||
Stock-based compensation | 9,721 | 9,721 | |||
Stock options exercised and other awards | $ 1 | 8,926 | 8,927 | ||
Stock options exercised and other awards (in shares) | 150 | ||||
Purchase of treasury shares | (21,659) | $ (21,659) | |||
Purchase of treasury shares (in shares) | (41) | ||||
Repurchase of common shares, including excise tax | $ (5) | (2,266) | (283,512) | $ (285,783) | |
Repurchase of common shares, including excise tax (in shares) | (541) | ||||
Treasury--common stock (in shares) at Apr. 29, 2023 | (797) | ||||
Balance at Apr. 29, 2023 | $ 507 | (82,129) | 1,040,378 | 1,059,312 | $ 2,018,068 |
Balance (in shares) at Apr. 29, 2023 | 50,729 | ||||
Balance at Jan. 28, 2023 | $ 511 | (60,470) | 1,023,997 | 995,773 | $ 1,959,811 |
Balance (in shares) at Jan. 28, 2023 | 51,120 | ||||
Treasury--common stock (in shares) at Jan. 28, 2023 | (756) | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | $ 647,153 | ||||
Repurchase of common shares, including excise tax | $ (564,014) | ||||
Repurchase of common shares, including excise tax (in shares) | (1,135) | ||||
Treasury--common stock (in shares) at Jul. 29, 2023 | (798) | ||||
Balance at Jul. 29, 2023 | $ 501 | (82,229) | 1,049,679 | 1,083,926 | $ 2,051,877 |
Balance (in shares) at Jul. 29, 2023 | 50,139 | 49,341 | |||
Balance at Apr. 29, 2023 | $ 507 | (82,129) | 1,040,378 | 1,059,312 | $ 2,018,068 |
Balance (in shares) at Apr. 29, 2023 | 50,729 | ||||
Treasury--common stock (in shares) at Apr. 29, 2023 | (797) | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 300,102 | $ 300,102 | |||
Stock-based compensation | 11,818 | 11,818 | |||
Stock options exercised and other awards | 220 | 220 | |||
Stock options exercised and other awards (in shares) | 4 | ||||
Purchase of treasury shares | (100) | $ (100) | |||
Purchase of treasury shares (in shares) | (1) | ||||
Repurchase of common shares, including excise tax | $ (6) | (2,737) | (275,488) | $ (278,231) | |
Repurchase of common shares, including excise tax (in shares) | (594) | ||||
Treasury--common stock (in shares) at Jul. 29, 2023 | (798) | ||||
Balance at Jul. 29, 2023 | $ 501 | (82,229) | 1,049,679 | 1,083,926 | $ 2,051,877 |
Balance (in shares) at Jul. 29, 2023 | 50,139 | 49,341 | |||
Balance at Feb. 03, 2024 | $ 491 | (83,032) | 1,075,104 | 1,286,765 | $ 2,279,328 |
Balance (in shares) at Feb. 03, 2024 | 49,123 | 48,324 | |||
Treasury--common stock (in shares) at Feb. 03, 2024 | (799) | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 313,113 | $ 313,113 | |||
Stock-based compensation | 10,082 | 10,082 | |||
Stock options exercised and other awards | $ 2 | 8,911 | 8,913 | ||
Stock options exercised and other awards (in shares) | 153 | ||||
Purchase of treasury shares | (23,283) | $ (23,283) | |||
Purchase of treasury shares (in shares) | (44) | ||||
Repurchase of common shares, including excise tax | $ (6) | (2,275) | (285,129) | $ (287,410) | |
Repurchase of common shares, including excise tax (in shares) | (588) | ||||
Treasury--common stock (in shares) at May. 04, 2024 | (843) | ||||
Balance at May. 04, 2024 | $ 487 | (106,315) | 1,091,822 | 1,314,749 | $ 2,300,743 |
Balance (in shares) at May. 04, 2024 | 48,688 | ||||
Balance at Feb. 03, 2024 | $ 491 | (83,032) | 1,075,104 | 1,286,765 | $ 2,279,328 |
Balance (in shares) at Feb. 03, 2024 | 49,123 | 48,324 | |||
Treasury--common stock (in shares) at Feb. 03, 2024 | (799) | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | $ 565,669 | ||||
Repurchase of common shares, including excise tax | $ (501,846) | ||||
Repurchase of common shares, including excise tax (in shares) | (1,138) | ||||
Treasury--common stock (in shares) at Aug. 03, 2024 | (843) | ||||
Balance at Aug. 03, 2024 | $ 481 | (106,491) | 1,099,197 | 1,354,973 | $ 2,348,160 |
Balance (in shares) at Aug. 03, 2024 | 48,143 | 47,300 | |||
Balance at May. 04, 2024 | $ 487 | (106,315) | 1,091,822 | 1,314,749 | $ 2,300,743 |
Balance (in shares) at May. 04, 2024 | 48,688 | ||||
Treasury--common stock (in shares) at May. 04, 2024 | (843) | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 252,556 | $ 252,556 | |||
Stock-based compensation | 9,190 | 9,190 | |||
Stock options exercised and other awards | 283 | 283 | |||
Stock options exercised and other awards (in shares) | 5 | ||||
Purchase of treasury shares | (176) | (176) | |||
Repurchase of common shares, including excise tax | $ (6) | (2,098) | (212,332) | $ (214,436) | |
Repurchase of common shares, including excise tax (in shares) | (550) | ||||
Treasury--common stock (in shares) at Aug. 03, 2024 | (843) | ||||
Balance at Aug. 03, 2024 | $ 481 | $ (106,491) | $ 1,099,197 | $ 1,354,973 | $ 2,348,160 |
Balance (in shares) at Aug. 03, 2024 | 48,143 | 47,300 |
Business and basis of presentat
Business and basis of presentation | 6 Months Ended |
Aug. 03, 2024 | |
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. Nearly every store features a full-service salon. 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 August 3, 2024, the Company operated 1,411 stores across 50 states, as shown in the table below. Number of Number of Location stores Location stores Alabama 27 Montana 6 Alaska 3 Nebraska 5 Arizona 37 Nevada 16 Arkansas 11 New Hampshire 8 California 173 New Jersey 46 Colorado 27 New Mexico 7 Connecticut 19 New York 56 Delaware 4 North Carolina 46 Florida 100 North Dakota 4 Georgia 44 Ohio 47 Hawaii 4 Oklahoma 22 Idaho 10 Oregon 19 Illinois 55 Pennsylvania 45 Indiana 26 Rhode Island 5 Iowa 11 South Carolina 26 Kansas 14 South Dakota 3 Kentucky 16 Tennessee 32 Louisiana 18 Texas 133 Maine 3 Utah 15 Maryland 29 Vermont 1 Massachusetts 27 Virginia 35 Michigan 49 Washington 37 Minnesota 20 West Virginia 7 Mississippi 12 Wisconsin 21 Missouri 26 Wyoming 4 Total 1,411 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 and 26 weeks ended August 3, 2024 are not necessarily indicative of the results to be expected for the fiscal year ending February 1, 2025, or for any other future interim period or for any future year. 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 February 3, 2024. 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 | 6 Months Ended |
Aug. 03, 2024 | |
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 February 3, 2024. 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 second quarter in fiscal 2024 and 2023 ended on August 3, 2024 and July 29, 2023, 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 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. Recent accounting pronouncements not yet adopted Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure. The guidance updates reportable segment disclosure requirements, primarily through requiring enhanced disclosures about significant segment expenses and information used to assess segment performance. The ASU is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-07 on related disclosures. Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The guidance includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The guidance is effective for fiscal years beginning after December 15, 2024 and should be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of adopting this ASU on related disclosures. Securities and Exchange Commission (SEC) Climate-Related Disclosures In March 2024, the SEC adopted rules intended to enhance and standardize climate-related disclosures in registration statements and annual reports. The new rules will require disclosure of material climate-related risks, including disclosure of Board of Directors' oversight and risk management activities, the material impacts of these risks to us and the quantification of material impacts to us as a result of severe weather events and other natural conditions. The rules also require disclosure of material greenhouse gas emissions and any material climate-related targets and goals. The new rules will be effective for annual reporting periods beginning in fiscal year 2025, except for the greenhouse gas emissions disclosures which will be effective for annual reporting periods beginning in fiscal year 2026, however the new rules have been stayed by the federal courts and, as a result, the SEC has indefinitely delayed their effectiveness. The Company is currently evaluating the impact of these new rules. |
Revenue
Revenue | 6 Months Ended |
Aug. 03, 2024 | |
Revenue | |
Revenue | 3 . Revenue Net sales include retail stores and e-commerce merchandise sales as well as salon services and other revenue. Other revenue includes the private label and co-branded credit card programs, royalties derived from the partnership with Target Corporation, and 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 : 13 Weeks Ended 26 Weeks Ended August 3, July 29, August 3, July 29, (Percentage of net sales) 2024 2023 2024 2023 Cosmetics 39% 40% 40% 42% Skincare 24% 23% 24% 22% Haircare 20% 22% 19% 21% Fragrance 11% 9% 11% 9% Services 4% 4% 4% 4% Other 2% 2% 2% 2% 100% 100% 100% 100% Certain sales departments were reclassified between categories in the prior year to conform to current year presentation, including moving the bath category from Fragrance to Skincare. Deferred revenue The following table provides a summary of the changes included in deferred revenue during the 13 and 26 weeks ended August 3, 2024 and July 29, 2023: 13 Weeks Ended 26 Weeks Ended August 3, July 29, August 3, July 29, (In thousands) 2024 2023 2024 2023 Beginning balance $ 391,446 $ 350,123 $ 428,788 $ 388,583 Additions to contract liabilities (1) 120,189 114,374 253,584 237,770 Deductions to contract liabilities (2) (123,818) (118,430) (294,555) (280,286) Ending balance $ 387,817 $ 346,067 $ 387,817 $ 346,067 (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 $7,170 and $8,186 at August 3, 2024 and July 29, 2023, respectively. |
Goodwill and other intangible a
Goodwill and other intangible assets | 6 Months Ended |
Aug. 03, 2024 | |
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 August 3, 2024, February 3, 2024, and July 29, 2023. No additional goodwill was recognized during the 13 and 26 weeks ended August 3, 2024. 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 | 6 Months Ended |
Aug. 03, 2024 | |
Leases | |
Leases | 5. Leases The Company leases retail stores, distribution centers, fast fulfillment centers, market fulfillment centers, corporate offices, and certain equipment under non-cancelable operating leases with various expiration dates through 2036. 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, fast fulfillment centers, and market 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. 13 Weeks Ended 26 Weeks Ended August 3, July 29, August 3, July 29, (In thousands) 2024 2023 2024 2023 Operating lease cost $ 88,080 $ 83,121 $ 176,235 $ 168,249 Other information The following table presents supplemental disclosures of cash flow information related to operating leases: 26 Weeks Ended August 3, July 29, (In thousands) 2024 2023 Cash paid for operating lease liabilities (1) $ 203,766 $ 196,638 Operating lease assets obtained in exchange for operating lease liabilities (non-cash) 188,686 140,750 (1) Excludes $19,882 and $17,450 related to cash received for tenant incentives for the 26 weeks ended August 3, 2024 and July 29, 2023, respectively. |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Aug. 03, 2024 | |
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 | 6 Months Ended |
Aug. 03, 2024 | |
Debt | |
Debt | 7. Debt On March 13, 2024, the Company entered into Amendment No. 3 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 13, 2029, provides maximum revolving loans equal to the lesser of $800,000 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 $200,000, 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 0.5% to 1.0% or the Term Secured Overnight As of August 3, 2024, February 3, 2024, and July 29, 2023, there were no borrowings outstanding under the credit facility. As of August 3, 2024, the Company was in compliance with all terms and covenants of the Loan Agreement. |
Fair value measurements
Fair value measurements | 6 Months Ended |
Aug. 03, 2024 | |
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 August 3, 2024 February 3, 2024 July 29, 2023 |
Stock-based compensation
Stock-based compensation | 6 Months Ended |
Aug. 03, 2024 | |
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 for the periods indicated: 26 Weeks Ended August 3, July 29, 2024 2023 Volatility rate 33.0% 45.0% Average risk-free interest rate 4.4% 3.8% Average expected life (in years) 3.5 3.4 Dividend yield — — 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 56 and 42 stock options during the 26 weeks ended August 3, 2024 and July 29, 2023, respectively. Stock-based compensation expense for stock options was $1,506 and $1,749 for the 13 weeks ended August 3, 2024 and July 29, 2023, respectively. Stock-based compensation expense for stock options was $3,185 and $3,219 for the 26 weeks ended August 3, 2024 and July 29, 2023, respectively. The weighted-average grant date fair value of these stock options was $157.66 and $199.15 for the 26 weeks ended August 3, 2024 and July 29, 2023, respectively. At August 3, 2024, there was approximately $15,252 of unrecognized stock-based compensation expense related to unvested stock options. There were 51 and 45 restricted stock units issued during the 26 weeks ended August 3, 2024 and July 29, 2023, respectively. Stock-based compensation expense for restricted stock units was $4,997 and $4,934 for the 13 weeks ended August 3, 2024 and July 29, 2023, respectively. Stock-based compensation expense for restricted stock units was $9,385 and $9,293 for the 26 weeks ended August 3, 2024 and July 29, 2023, respectively. At August 3, 2024, there was approximately $39,738 of unrecognized stock-based compensation expense related to restricted stock units. There were 71 and 33 performance-based restricted stock units issued during the 26 weeks ended August 3, 2024 and July 29, 2023, respectively. Stock-based compensation expense for performance-based restricted stock units was $2,687 and $5,135 for the 13 weeks ended August 3, 2024 and July 29, 2023, respectively. Stock-based compensation expense for performance-based restricted stock units was $6,702 and $9,027 for the 26 weeks ended August 3, 2024 and July 29, 2023, respectively. At August 3, 2024, there was approximately $25,089 of unrecognized stock-based compensation expense related to performance-based restricted stock units. |
Income taxes
Income taxes | 6 Months Ended |
Aug. 03, 2024 | |
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 $81,171 for the 13 weeks ended August 3, 2024 represents an effective tax rate of 24.3%, compared to $95,989 of tax expense representing an effective tax rate of 24.2% for the 13 weeks ended July 29, 2023. Income tax expense of $175,906 for the 26 weeks ended August 3, 2024 represents an effective tax rate of 23.7%, compared to $198,356 of tax expense representing an effective tax rate of 23.5% for the 26 weeks ended July 29, 2023. On August 16, 2022, the Inflation Reduction Act of 2022 was enacted into law, which, among other things, introduced a 15% corporate alternative minimum tax on book income of certain large corporations and created a 1% excise tax on net share repurchases. The corporate alternative minimum tax is effective beginning in fiscal 2024 and did not have a material impact on the consolidated financial statements for the 13 and 26 weeks ended August 3, 2024. The excise tax applies to share repurchases made after December 31, 2022. |
Net income per common share
Net income per common share | 6 Months Ended |
Aug. 03, 2024 | |
Net income per common share | |
Net income per common share | 11. Net income per common share The following is a reconciliation of net income 13 Weeks Ended 26 Weeks Ended August 3, July 29, August 3, July 29, (In thousands, except per share data) 2024 2023 2024 2023 Numerator: Net income $ 252,556 $ 300,102 $ 565,669 $ 647,153 Denominator: Weighted-average common shares – Basic 47,505 49,617 47,815 49,885 Dilutive effect of stock options and non-vested stock 162 232 207 272 Weighted-average common shares – Diluted 47,667 49,849 48,022 50,157 Net income per common share: Basic $ 5.32 $ 6.05 $ 11.83 $ 12.97 Diluted $ 5.30 $ 6.02 $ 11.78 $ 12.90 The denominator for diluted net income per common share for the 13 weeks ended August 3, 2024 and July 29, 2023 excludes 184 and 127 employee stock options and restricted stock units, respectively, due to their anti-dilutive effects. The denominator for diluted net income per common share for the 26 weeks ended August 3, 2024 and July 29, 2023 excludes 195 and 133 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 | 6 Months Ended |
Aug. 03, 2024 | |
Share repurchase program | |
Share repurchase program | 12. Share repurchase program In March 2022, the Board of Directors authorized a share repurchase program (the 2022 Share Repurchase Program) pursuant to which the Company could repurchase up to $2,000,000 of the Company’s common stock. The 2022 Share Repurchase Program authorization revoked the previously authorized but unused amounts from the earlier share repurchase program. The 2022 Share Repurchase Program did not have an expiration date but provided for suspension or discontinuation at any time. In March 2024, the Board of Directors authorized a new share repurchase program (the 2024 Share Repurchase Program) pursuant to which the Company may repurchase up to $2,000,000 of the Company’s common stock. The 2024 Share Repurchase Program authorization revoked the previously authorized but unused amounts from the 2022 Share Repurchase Program. The 2024 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: 26 Weeks Ended August 3, July 29, (In thousands) 2024 2023 Shares repurchased 1,138 1,135 Total cost of shares repurchased, including excise tax $ 501,846 $ 564,014 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Aug. 03, 2024 | May 04, 2024 | Jul. 29, 2023 | Apr. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ 252,556 | $ 313,113 | $ 300,102 | $ 347,051 | $ 565,669 | $ 647,153 |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended |
Aug. 03, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 6 Months Ended |
Aug. 03, 2024 | |
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 second quarter in fiscal 2024 and 2023 ended on August 3, 2024 and July 29, 2023, 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 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. |
Recent adopted accounting pronouncements not yet adopted | Recent accounting pronouncements not yet adopted Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure. The guidance updates reportable segment disclosure requirements, primarily through requiring enhanced disclosures about significant segment expenses and information used to assess segment performance. The ASU is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-07 on related disclosures. Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The guidance includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The guidance is effective for fiscal years beginning after December 15, 2024 and should be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of adopting this ASU on related disclosures. Securities and Exchange Commission (SEC) Climate-Related Disclosures In March 2024, the SEC adopted rules intended to enhance and standardize climate-related disclosures in registration statements and annual reports. The new rules will require disclosure of material climate-related risks, including disclosure of Board of Directors' oversight and risk management activities, the material impacts of these risks to us and the quantification of material impacts to us as a result of severe weather events and other natural conditions. The rules also require disclosure of material greenhouse gas emissions and any material climate-related targets and goals. The new rules will be effective for annual reporting periods beginning in fiscal year 2025, except for the greenhouse gas emissions disclosures which will be effective for annual reporting periods beginning in fiscal year 2026, however the new rules have been stayed by the federal courts and, as a result, the SEC has indefinitely delayed their effectiveness. The Company is currently evaluating the impact of these new rules. |
Business and basis of present_2
Business and basis of presentation (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
Business and basis of presentation | |
Schedule of stores operated by geographic area | Number of Number of Location stores Location stores Alabama 27 Montana 6 Alaska 3 Nebraska 5 Arizona 37 Nevada 16 Arkansas 11 New Hampshire 8 California 173 New Jersey 46 Colorado 27 New Mexico 7 Connecticut 19 New York 56 Delaware 4 North Carolina 46 Florida 100 North Dakota 4 Georgia 44 Ohio 47 Hawaii 4 Oklahoma 22 Idaho 10 Oregon 19 Illinois 55 Pennsylvania 45 Indiana 26 Rhode Island 5 Iowa 11 South Carolina 26 Kansas 14 South Dakota 3 Kentucky 16 Tennessee 32 Louisiana 18 Texas 133 Maine 3 Utah 15 Maryland 29 Vermont 1 Massachusetts 27 Virginia 35 Michigan 49 Washington 37 Minnesota 20 West Virginia 7 Mississippi 12 Wisconsin 21 Missouri 26 Wyoming 4 Total 1,411 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
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 : 13 Weeks Ended 26 Weeks Ended August 3, July 29, August 3, July 29, (Percentage of net sales) 2024 2023 2024 2023 Cosmetics 39% 40% 40% 42% Skincare 24% 23% 24% 22% Haircare 20% 22% 19% 21% Fragrance 11% 9% 11% 9% Services 4% 4% 4% 4% Other 2% 2% 2% 2% 100% 100% 100% 100% |
Summary of changes in deferred revenue | 13 Weeks Ended 26 Weeks Ended August 3, July 29, August 3, July 29, (In thousands) 2024 2023 2024 2023 Beginning balance $ 391,446 $ 350,123 $ 428,788 $ 388,583 Additions to contract liabilities (1) 120,189 114,374 253,584 237,770 Deductions to contract liabilities (2) (123,818) (118,430) (294,555) (280,286) Ending balance $ 387,817 $ 346,067 $ 387,817 $ 346,067 (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) | 6 Months Ended |
Aug. 03, 2024 | |
Leases | |
Summary of components of lease cost for operating leases: | 13 Weeks Ended 26 Weeks Ended August 3, July 29, August 3, July 29, (In thousands) 2024 2023 2024 2023 Operating lease cost $ 88,080 $ 83,121 $ 176,235 $ 168,249 |
Schedule of supplemental disclosures of cash flow information related to operating leases | The following table presents supplemental disclosures of cash flow information related to operating leases: 26 Weeks Ended August 3, July 29, (In thousands) 2024 2023 Cash paid for operating lease liabilities (1) $ 203,766 $ 196,638 Operating lease assets obtained in exchange for operating lease liabilities (non-cash) 188,686 140,750 (1) Excludes $19,882 and $17,450 related to cash received for tenant incentives for the 26 weeks ended August 3, 2024 and July 29, 2023, respectively. |
Stock-based compensation (Table
Stock-based compensation (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
Stock-based compensation | |
Schedule of weighted average assumptions to determine grant date fair value of employee stock options | 26 Weeks Ended August 3, July 29, 2024 2023 Volatility rate 33.0% 45.0% Average risk-free interest rate 4.4% 3.8% Average expected life (in years) 3.5 3.4 Dividend yield — — |
Net income per common share (Ta
Net income per common share (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
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 26 Weeks Ended August 3, July 29, August 3, July 29, (In thousands, except per share data) 2024 2023 2024 2023 Numerator: Net income $ 252,556 $ 300,102 $ 565,669 $ 647,153 Denominator: Weighted-average common shares – Basic 47,505 49,617 47,815 49,885 Dilutive effect of stock options and non-vested stock 162 232 207 272 Weighted-average common shares – Diluted 47,667 49,849 48,022 50,157 Net income per common share: Basic $ 5.32 $ 6.05 $ 11.83 $ 12.97 Diluted $ 5.30 $ 6.02 $ 11.78 $ 12.90 |
Share repurchase program (Table
Share repurchase program (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
Share repurchase program | |
Summary of common stock repurchase activity | A summary of common stock repurchase activity is presented in the following table: 26 Weeks Ended August 3, July 29, (In thousands) 2024 2023 Shares repurchased 1,138 1,135 Total cost of shares repurchased, including excise tax $ 501,846 $ 564,014 |
Business and basis of present_3
Business and basis of presentation (Details) | Aug. 03, 2024 store state |
Stores by state | |
Number of stores operated | 1,411 |
Number of states in which entity operates | state | 50 |
Alabama | |
Stores by state | |
Number of stores operated | 27 |
Alaska | |
Stores by state | |
Number of stores operated | 3 |
Arizona | |
Stores by state | |
Number of stores operated | 37 |
Arkansas | |
Stores by state | |
Number of stores operated | 11 |
California | |
Stores by state | |
Number of stores operated | 173 |
Colorado | |
Stores by state | |
Number of stores operated | 27 |
Connecticut | |
Stores by state | |
Number of stores operated | 19 |
Delaware | |
Stores by state | |
Number of stores operated | 4 |
Florida | |
Stores by state | |
Number of stores operated | 100 |
Georgia | |
Stores by state | |
Number of stores operated | 44 |
Hawaii | |
Stores by state | |
Number of stores operated | 4 |
Idaho | |
Stores by state | |
Number of stores operated | 10 |
Illinois | |
Stores by state | |
Number of stores operated | 55 |
Indiana | |
Stores by state | |
Number of stores operated | 26 |
Iowa | |
Stores by state | |
Number of stores operated | 11 |
Kansas | |
Stores by state | |
Number of stores operated | 14 |
Kentucky | |
Stores by state | |
Number of stores operated | 16 |
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 | 29 |
Massachusetts | |
Stores by state | |
Number of stores operated | 27 |
Michigan | |
Stores by state | |
Number of stores operated | 49 |
Minnesota | |
Stores by state | |
Number of stores operated | 20 |
Mississippi | |
Stores by state | |
Number of stores operated | 12 |
Missouri | |
Stores by state | |
Number of stores operated | 26 |
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 | 46 |
New Mexico | |
Stores by state | |
Number of stores operated | 7 |
New York | |
Stores by state | |
Number of stores operated | 56 |
North Carolina | |
Stores by state | |
Number of stores operated | 46 |
North Dakota | |
Stores by state | |
Number of stores operated | 4 |
Ohio | |
Stores by state | |
Number of stores operated | 47 |
Oklahoma | |
Stores by state | |
Number of stores operated | 22 |
Oregon | |
Stores by state | |
Number of stores operated | 19 |
Pennsylvania | |
Stores by state | |
Number of stores operated | 45 |
Rhode Island | |
Stores by state | |
Number of stores operated | 5 |
South Carolina | |
Stores by state | |
Number of stores operated | 26 |
South Dakota | |
Stores by state | |
Number of stores operated | 3 |
Tennessee | |
Stores by state | |
Number of stores operated | 32 |
Texas | |
Stores by state | |
Number of stores operated | 133 |
Utah | |
Stores by state | |
Number of stores operated | 15 |
Vermont | |
Stores by state | |
Number of stores operated | 1 |
Virginia | |
Stores by state | |
Number of stores operated | 35 |
Washington | |
Stores by state | |
Number of stores operated | 37 |
West Virginia | |
Stores by state | |
Number of stores operated | 7 |
Wisconsin | |
Stores by state | |
Number of stores operated | 21 |
Wyoming | |
Stores by state | |
Number of stores operated | 4 |
Summary of significant accoun_3
Summary of significant accounting policies (Details) | 6 Months Ended | |
Aug. 03, 2024 | Jul. 29, 2023 | |
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 | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Disaggregated revenue | ||||
Concentration (as a percent) | 100% | 100% | 100% | 100% |
Cosmetics | ||||
Disaggregated revenue | ||||
Concentration (as a percent) | 39% | 40% | 40% | 42% |
Skincare | ||||
Disaggregated revenue | ||||
Concentration (as a percent) | 24% | 23% | 24% | 22% |
Haircare | ||||
Disaggregated revenue | ||||
Concentration (as a percent) | 20% | 22% | 19% | 21% |
Fragrance | ||||
Disaggregated revenue | ||||
Concentration (as a percent) | 11% | 9% | 11% | 9% |
Services | ||||
Disaggregated revenue | ||||
Concentration (as a percent) | 4% | 4% | 4% | 4% |
Other | ||||
Disaggregated revenue | ||||
Concentration (as a percent) | 2% | 2% | 2% | 2% |
Revenue - Deferred revenue (Det
Revenue - Deferred revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Summary of changes in deferred revenue | ||||
Beginning balance | $ 391,446 | $ 350,123 | $ 428,788 | $ 388,583 |
Additions to contract liabilities | 120,189 | 114,374 | 253,584 | 237,770 |
Deductions to contract liabilities | (123,818) | (118,430) | (294,555) | (280,286) |
Ending balance | 387,817 | 346,067 | 387,817 | 346,067 |
Other amounts included in deferred revenue | $ 7,170 | $ 8,186 | $ 7,170 | $ 8,186 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 | |
Goodwill and Other Intangible Assets | ||||
Goodwill | $ 10,870 | $ 10,870 | $ 10,870 | $ 10,870 |
Additional goodwill recognized | $ 0 | $ 0 |
Leases - Lease cost and Other i
Leases - Lease cost and Other information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Leases | ||||
Initial lease term | 10 years | 10 years | ||
Operating lease cost | $ 88,080 | $ 83,121 | $ 176,235 | $ 168,249 |
Cash paid for operating lease liabilities | 203,766 | 196,638 | ||
Operating lease assets obtained in exchange for operating lease liabilities (non-cash) | 188,686 | 140,750 | ||
Excluded cash received for tenant incentives | $ 19,882 | $ 17,450 |
Debt (Details)
Debt (Details) $ in Thousands | Mar. 13, 2024 USD ($) | Aug. 03, 2024 USD ($) | Feb. 03, 2024 USD ($) | Jul. 29, 2023 USD ($) |
Notes payable | ||||
Outstanding borrowings under credit facility | $ 0 | $ 0 | $ 0 | |
Amendment No. 3 to the Second Amended and Restated Loan Agreement | ||||
Notes payable | ||||
Contingent increase to revolving facility | $ 200,000 | |||
Interest rate margin (as a percent) | 0.10% | |||
Amendment No. 3 to the Second Amended and Restated Loan Agreement | Minimum | ||||
Notes payable | ||||
Fixed charge coverage ratio covenant | 1 | |||
Interest rate margin (as a percent) | 1.50% | |||
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] | us-gaap:SecuredOvernightFinancingRateSofrMember | |||
Unused line fee (as a percent) | 0.25% | |||
Amendment No. 3 to the Second Amended and Restated Loan Agreement | Maximum | ||||
Notes payable | ||||
Maximum borrowing capacity | $ 800,000 | |||
Interest rate margin (as a percent) | 2% | |||
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] | us-gaap:SecuredOvernightFinancingRateSofrMember | |||
Unused line fee (as a percent) | 0.375% | |||
Amendment No. 3 to the Second Amended and Restated Loan Agreement | Base Rate | Minimum | ||||
Notes payable | ||||
Interest rate margin (as a percent) | 0.50% | |||
Amendment No. 3 to the Second Amended and Restated Loan Agreement | Base Rate | Maximum | ||||
Notes payable | ||||
Interest rate margin (as a percent) | 1% | |||
Amendment No. 3 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) - Fair Value, Inputs, Level 2 - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Aug. 03, 2024 | Jul. 29, 2023 | Feb. 03, 2024 | |
Fair value measurements | |||
Fair value of financial liabilities | $ 48,720 | $ 42,529 | $ 42,653 |
Defined Benefit Plan, Tax Status [Extensible Enumeration] | us-gaap:NonqualifiedPlanMember | us-gaap:NonqualifiedPlanMember | us-gaap:NonqualifiedPlanMember |
Stock-based compensation - Assu
Stock-based compensation - Assumptions to Estimate Fair Value of Stock Options (Details) - Employee Stock Option [Member] | 6 Months Ended | |
Aug. 03, 2024 | Jul. 29, 2023 | |
Weighted-average assumptions to estimate fair value | ||
Volatility rate (as a percent) | 33% | 45% |
Average risk-free interest rate (as a percent) | 4.40% | 3.80% |
Average expected life | 3 years 6 months | 3 years 4 months 24 days |
Dividend yield (as a percent) | 0% | 0% |
Stock-based compensation - Stoc
Stock-based compensation - Stock Option Activity (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Stock-based compensation | ||||
Weighted-average grant date fair value (in dollars per share) | $ 157.66 | $ 199.15 | ||
Stock options | ||||
Stock-based compensation expense | $ 1,506 | $ 1,749 | $ 3,185 | $ 3,219 |
Unrecognized stock-based compensation expense | $ 15,252 | $ 15,252 | ||
Number of options | ||||
Granted (in shares) | 56 | 42 |
Stock-based compensation - Rest
Stock-based compensation - Restricted Stock Units (Details) - Restricted stock units - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Restricted stock units | ||||
Unrecognized stock-based compensation expense | $ 39,738 | $ 39,738 | ||
Stock-based compensation expense | $ 4,997 | $ 4,934 | $ 9,385 | $ 9,293 |
Number of shares | ||||
Granted (in shares) | 51 | 45 |
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 | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Performance-based restricted stock units | ||||
Unrecognized stock-based compensation expense | $ 25,089 | $ 25,089 | ||
Stock-based compensation expense | $ 2,687 | $ 5,135 | $ 6,702 | $ 9,027 |
Number of shares | ||||
Granted (in shares) | 71 | 33 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Aug. 16, 2022 | Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Income Taxes | |||||
Income tax expense | $ 81,171 | $ 95,989 | $ 175,906 | $ 198,356 | |
Effective tax rate (as a percent) | 24.30% | 24.20% | 23.70% | 23.50% | |
Alternative minimum tax | 15% | ||||
Excise tax | 1% |
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 | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Numerator: | ||||
Net income | $ 252,556 | $ 300,102 | $ 565,669 | $ 647,153 |
Denominator: | ||||
Weighted-average common shares - Basic | 47,505 | 49,617 | 47,815 | 49,885 |
Dilutive effect of stock options and non-vested stock | 162 | 232 | 207 | 272 |
Weighted-average common shares - Diluted | 47,667 | 49,849 | 48,022 | 50,157 |
Net income per common share: | ||||
Basic | $ 5.32 | $ 6.05 | $ 11.83 | $ 12.97 |
Diluted | $ 5.30 | $ 6.02 | $ 11.78 | $ 12.90 |
Net income per common share - A
Net income per common share - Anti-dilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Net income per common share | ||||
Employee stock options and restricted stock units excluded from the computation of net income per common share | 184 | 127 | 195 | 133 |
Share repurchase program (Detai
Share repurchase program (Details) - USD ($) shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2022 | Aug. 03, 2024 | May 04, 2024 | Jul. 29, 2023 | Apr. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | Mar. 31, 2024 | |
Share repurchase program | ||||||||
Shares repurchased (in shares) | 1,138 | 1,135 | ||||||
Total cost of shares repurchased, including excise tax | $ 214,436 | $ 287,410 | $ 278,231 | $ 285,783 | $ 501,846 | $ 564,014 | ||
2022 Share Repurchase Program | Maximum | ||||||||
Share repurchase program | ||||||||
Increase in amount authorized for share repurchase program | $ 2,000,000 | |||||||
2024 Share Repurchase Program | Maximum | ||||||||
Share repurchase program | ||||||||
Authorized amount of share repurchase program | $ 2,000,000 |