Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 31, 2020 | Nov. 30, 2020 | |
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 | Oct. 31, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-30 | |
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 | SuiteĀ 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 | |
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 | 56,338,639 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ULTA |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2020 | Feb. 01, 2020 | Nov. 02, 2019 |
Current assets: | |||
Cash and cash equivalents | $ 560,902 | $ 392,325 | $ 208,843 |
Short-term investments | 110,000 | ||
Receivables, net | 136,271 | 139,337 | 112,888 |
Merchandise inventories, net | 1,439,098 | 1,293,701 | 1,616,920 |
Prepaid expenses and other current assets | 99,810 | 103,567 | 118,343 |
Prepaid income taxes | 8,928 | 16,387 | 40,474 |
Total current assets | 2,245,009 | 2,055,317 | 2,097,468 |
Property and equipment, net | 1,042,262 | 1,205,524 | 1,233,412 |
Operating lease assets | 1,510,030 | 1,537,565 | 1,529,524 |
Goodwill | 10,870 | 10,870 | 10,870 |
Other intangible assets, net | 2,696 | 3,391 | 3,622 |
Deferred compensation plan assets | 30,141 | 27,849 | 26,269 |
Other long-term assets | 29,986 | 23,356 | 27,683 |
Total assets | 4,870,994 | 4,863,872 | 4,928,848 |
Current liabilities: | |||
Accounts payable | 478,501 | 414,009 | 594,993 |
Accrued liabilities | 268,310 | 246,088 | 249,112 |
Deferred revenue | 224,862 | 237,535 | 190,188 |
Current operating lease liabilities | 252,171 | 239,629 | 222,627 |
Accrued income taxes | 6,499 | ||
Total current liabilities | 1,230,343 | 1,137,261 | 1,256,920 |
Non-current operating lease liabilities | 1,661,750 | 1,698,718 | 1,706,806 |
Deferred income taxes | 89,112 | 89,367 | 83,856 |
Other long-term liabilities | 35,352 | 36,432 | 34,110 |
Total liabilities | 3,016,557 | 2,961,778 | 3,081,692 |
Commitments and contingencies (Note 8) | |||
Stockholders' equity: | |||
Common stock, $0.01 par value, 400,000 shares authorized; 57,024, 57,285 and 57,959 shares issued; 56,332, 56,609 and 57,283 shares outstanding; at October 31, 2020 (unaudited), February 1, 2020, and November 2, 2019 (unaudited), respectively | 570 | 573 | 580 |
Treasury stock-common, at cost | (37,704) | (34,448) | (34,272) |
Additional paid-in capital | 831,817 | 807,492 | 800,986 |
Retained earnings | 1,059,840 | 1,128,477 | 1,079,862 |
Accumulated other comprehensive income (loss) | (86) | ||
Total stockholders' equity | 1,854,437 | 1,902,094 | 1,847,156 |
Total liabilities and stockholders' equity | $ 4,870,994 | $ 4,863,872 | $ 4,928,848 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Oct. 31, 2020 | Feb. 01, 2020 | Nov. 02, 2019 |
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 | 57,024 | 57,285 | 57,959 |
Common stock, shares outstanding | 56,332 | 56,609 | 57,283 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Consolidated Statements of Operations | ||||
Net sales | $ 1,552,033 | $ 1,682,514 | $ 3,953,252 | $ 5,092,150 |
Cost of sales | 1,006,514 | 1,059,081 | 2,775,121 | 3,217,971 |
Gross profit | 545,519 | 623,433 | 1,178,131 | 1,874,179 |
Selling, general and administrative expenses | 416,378 | 449,198 | 1,068,877 | 1,245,174 |
Impairment, restructuring and other costs | 23,624 | 83,924 | ||
Pre-opening expenses | 4,240 | 6,455 | 12,782 | 15,667 |
Operating income | 101,277 | 167,780 | 12,548 | 613,338 |
Interest expense (income), net | 1,383 | (900) | 5,272 | (4,617) |
Income before income taxes | 99,894 | 168,680 | 7,276 | 617,955 |
Income tax expense | 25,096 | 38,933 | 2,935 | 134,729 |
Net income | $ 74,798 | $ 129,747 | $ 4,341 | $ 483,226 |
Net income per common share: | ||||
Basic | $ 1.33 | $ 2.25 | $ 0.08 | $ 8.31 |
Diluted | $ 1.32 | $ 2.25 | $ 0.08 | $ 8.27 |
Weighted average common shares outstanding: | ||||
Basic | 56,327 | 57,568 | 56,355 | 58,123 |
Diluted | 56,546 | 57,763 | 56,524 | 58,396 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Consolidated Statements of Comprehensive Income | ||||
Net income | $ 74,798 | $ 129,747 | $ 4,341 | $ 483,226 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (116) | (86) | ||
Comprehensive income | $ 74,682 | $ 129,747 | $ 4,255 | $ 483,226 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2020 | Nov. 02, 2019 | |
Operating activities | ||
Net income | $ 4,341 | $ 483,226 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 226,386 | 219,207 |
Non-cash lease expense | 196,354 | 219,220 |
Long-lived asset impairment charge | 69,932 | |
Deferred income taxes | (255) | (8) |
Stock-based compensation expense | 22,979 | 19,108 |
Loss on disposal of property and equipment | 5,219 | 4,821 |
Change in operating assets and liabilities: | ||
Receivables | 3,066 | 5,812 |
Merchandise inventories | (145,397) | (402,591) |
Prepaid expenses and other current assets | 3,007 | (5,487) |
Income taxes | 13,958 | (23,477) |
Accounts payable | 62,337 | 190,977 |
Accrued liabilities | 24,582 | 23,109 |
Deferred revenue | (12,673) | (8,866) |
Operating lease liabilities | (212,665) | (198,181) |
Other assets and liabilities | (2,126) | 30,636 |
Net cash provided by operating activities | 259,045 | 557,506 |
Investing activities | ||
Purchases of short-term investments | (245,000) | |
Proceeds from short-term investments | 110,000 | 245,000 |
Capital expenditures | (116,745) | (241,136) |
Acquisitions, net of cash acquired | (1,220) | |
Purchases of equity investments | (5,665) | (43,757) |
Net cash used in investing activities | (13,630) | (284,893) |
Financing activities | ||
Proceeds from long-term debt | 800,000 | |
Payments on long-term debt | (800,000) | |
Repurchase of common shares | (72,981) | (506,868) |
Stock options exercised | 1,346 | 43,211 |
Purchase of treasury shares | (3,256) | (9,364) |
Debt issuance costs | (1,861) | |
Net cash used in financing activities | (76,752) | (473,021) |
Effect of exchange rate changes on cash and cash equivalents | (86) | |
Net increase (decrease) in cash and cash equivalents | 168,577 | (200,408) |
Cash and cash equivalents at beginning of period | 392,325 | 409,251 |
Cash and cash equivalents at end of period | 560,902 | 208,843 |
Supplemental information | ||
Cash paid for interest | 701 | |
Income taxes paid, net of refunds | 8,100 | 126,719 |
Non-cash capital expenditures | $ 27,916 | $ 44,271 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock | Treasury - Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Feb. 02, 2019 | $ 592 | $ (24,908) | $ 738,671 | $ 1,105,863 | $ 1,820,218 | |
Balance (in shares) at Feb. 02, 2019 | 59,232 | (648) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 192,221 | 192,221 | ||||
Stock-based compensation | 6,030 | 6,030 | ||||
Adoption of accounting standards | ASU 2016-02, Leases (Topic 842) | (2,375) | (2,375) | ||||
Stock options exercised and other awards | $ 4 | 42,052 | 42,056 | |||
Stock options exercised and other awards (in shares) | 348 | |||||
Purchase of treasury shares | $ (9,183) | (9,183) | ||||
Purchase of treasury shares (in shares) | (27) | |||||
Repurchase of common shares | $ (3) | (107,396) | (107,399) | |||
Repurchase of common shares (in shares) | (318) | |||||
Balance at May. 04, 2019 | $ 593 | $ (34,091) | 786,753 | 1,188,313 | 1,941,568 | |
Balance (in shares) at May. 04, 2019 | 59,262 | (675) | ||||
Balance at Feb. 02, 2019 | $ 592 | $ (24,908) | 738,671 | 1,105,863 | 1,820,218 | |
Balance (in shares) at Feb. 02, 2019 | 59,232 | (648) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 483,226 | |||||
Repurchase of common shares | $ (506,868) | |||||
Repurchase of common shares (in shares) | (1,639) | |||||
Balance at Nov. 02, 2019 | $ 580 | $ (34,272) | 800,986 | 1,079,862 | $ 1,847,156 | |
Balance (in shares) at Nov. 02, 2019 | 57,959 | (676) | 57,283 | |||
Balance at May. 04, 2019 | $ 593 | $ (34,091) | 786,753 | 1,188,313 | $ 1,941,568 | |
Balance (in shares) at May. 04, 2019 | 59,262 | (675) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 161,258 | 161,258 | ||||
Stock-based compensation | 6,736 | 6,736 | ||||
Stock options exercised and other awards | 879 | 879 | ||||
Stock options exercised and other awards (in shares) | 15 | |||||
Purchase of treasury shares | $ (89) | (89) | ||||
Repurchase of common shares | $ (8) | (270,893) | (270,901) | |||
Repurchase of common shares (in shares) | (792) | |||||
Balance at Aug. 03, 2019 | $ 585 | $ (34,180) | 794,368 | 1,078,678 | 1,839,451 | |
Balance (in shares) at Aug. 03, 2019 | 58,485 | (675) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 129,747 | 129,747 | ||||
Stock-based compensation | 6,342 | 6,342 | ||||
Stock options exercised and other awards | 276 | 276 | ||||
Stock options exercised and other awards (in shares) | 4 | |||||
Purchase of treasury shares | $ (92) | (92) | ||||
Purchase of treasury shares (in shares) | (1) | |||||
Repurchase of common shares | $ (5) | (128,563) | (128,568) | |||
Repurchase of common shares (in shares) | (530) | |||||
Balance at Nov. 02, 2019 | $ 580 | $ (34,272) | 800,986 | 1,079,862 | $ 1,847,156 | |
Balance (in shares) at Nov. 02, 2019 | 57,959 | (676) | 57,283 | |||
Balance at Feb. 01, 2020 | $ 573 | $ (34,448) | 807,492 | 1,128,477 | $ 1,902,094 | |
Balance (in shares) at Feb. 01, 2020 | 57,285 | (676) | 56,609 | |||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (78,509) | $ (78,509) | ||||
Stock-based compensation | 6,182 | 6,182 | ||||
Foreign currency translation adjustments | $ (75) | (75) | ||||
Stock options exercised and other awards | 250 | 250 | ||||
Stock options exercised and other awards (in shares) | 45 | |||||
Purchase of treasury shares | $ (3,002) | (3,002) | ||||
Purchase of treasury shares (in shares) | (15) | |||||
Repurchase of common shares | $ (3) | (72,978) | (72,981) | |||
Repurchase of common shares (in shares) | (327) | |||||
Balance at May. 02, 2020 | $ 570 | $ (37,450) | 813,924 | 976,990 | (75) | 1,753,959 |
Balance (in shares) at May. 02, 2020 | 57,003 | (691) | ||||
Balance at Feb. 01, 2020 | $ 573 | $ (34,448) | 807,492 | 1,128,477 | $ 1,902,094 | |
Balance (in shares) at Feb. 01, 2020 | 57,285 | (676) | 56,609 | |||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | $ 4,341 | |||||
Repurchase of common shares | $ (72,981) | |||||
Repurchase of common shares (in shares) | (327) | |||||
Balance at Oct. 31, 2020 | $ 570 | $ (37,704) | 831,817 | 1,059,840 | (86) | $ 1,854,437 |
Balance (in shares) at Oct. 31, 2020 | 57,024 | (692) | 56,332 | |||
Balance at May. 02, 2020 | $ 570 | $ (37,450) | 813,924 | 976,990 | (75) | $ 1,753,959 |
Balance (in shares) at May. 02, 2020 | 57,003 | (691) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 8,052 | 8,052 | ||||
Stock-based compensation | 8,413 | 8,413 | ||||
Foreign currency translation adjustments | 105 | 105 | ||||
Stock options exercised and other awards | 327 | 327 | ||||
Stock options exercised and other awards (in shares) | 11 | |||||
Purchase of treasury shares | $ (63) | (63) | ||||
Balance at Aug. 01, 2020 | $ 570 | $ (37,513) | 822,664 | 985,042 | 30 | 1,770,793 |
Balance (in shares) at Aug. 01, 2020 | 57,014 | (691) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 74,798 | 74,798 | ||||
Stock-based compensation | 8,384 | 8,384 | ||||
Foreign currency translation adjustments | (116) | (116) | ||||
Stock options exercised and other awards | 769 | 769 | ||||
Stock options exercised and other awards (in shares) | 10 | |||||
Purchase of treasury shares | $ (191) | (191) | ||||
Purchase of treasury shares (in shares) | (1) | |||||
Balance at Oct. 31, 2020 | $ 570 | $ (37,704) | $ 831,817 | $ 1,059,840 | $ (86) | $ 1,854,437 |
Balance (in shares) at Oct. 31, 2020 | 57,024 | (692) | 56,332 |
Business and basis of presentat
Business and basis of presentation | 9 Months Ended |
Oct. 31, 2020 | |
Business and basis of presentation | |
Business and basis of presentation | 1. Business and basis of presentation On January 29, 2017, Ulta Salon, Cosmetics & Fragrance, Inc. implemented a holding company reorganization. Pursuant to the reorganization, Ulta Beauty, Inc., which was incorporated as a Delaware corporation in December 2016, became the successor to Ulta Salon, Cosmetics & Fragrance, Inc., the former publicly-traded company and now a wholly owned subsidiary of Ulta Beauty, Inc. As used in these notes and throughout this Quarterly Report on Form 10-Q, all references to āwe,ā āus,ā āour,ā āUlta Beauty,ā or the āCompanyā refer to Ulta Beauty, Inc. and its consolidated subsidiaries. The Company was originally founded in 1990 to operate specialty retail stores selling cosmetics, fragrance, haircare and skincare products, and related accessories and services. The stores also feature full-service salons. As of October 31, 2020, the Company operated 1,262 stores across 50 states, as shown in the table below. ā ā ā ā ā ā ā ā ā Number of ā ā ā Number of Location stores Location stores Alabama ā 22 ā Montana ā 6 Alaska ā 3 ā Nebraska ā 5 Arizona ā 30 ā Nevada ā 15 Arkansas ā 10 ā New Hampshire ā 7 California ā 156 ā New Jersey ā 41 Colorado ā 26 ā New Mexico ā 7 Connecticut ā 17 ā New York ā 49 Delaware ā 3 ā North Carolina ā 34 Florida ā 86 ā North Dakota ā 3 Georgia ā 38 ā Ohio ā 43 Hawaii ā 4 ā Oklahoma ā 21 Idaho ā 9 ā Oregon ā 17 Illinois ā 55 ā Pennsylvania ā 44 Indiana ā 24 ā Rhode Island ā 3 Iowa ā 10 ā South Carolina ā 20 Kansas ā 13 ā South Dakota ā 3 Kentucky ā 15 ā Tennessee ā 27 Louisiana ā 18 ā Texas ā 117 Maine ā 3 ā Utah ā 14 Maryland ā 27 ā Vermont ā 1 Massachusetts ā 21 ā Virginia ā 30 Michigan ā 48 ā Washington ā 34 Minnesota ā 18 ā West Virginia ā 7 Mississippi ā 10 ā Wisconsin ā 20 Missouri ā 25 ā Wyoming ā 3 ā ā ā ā Total ā 1,262 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 Commissionās 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 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 novel coronavirus (COVID-19) pandemic has had, and will continue to have, a negative impact on the Companyās business, financial condition, profitability, cash flows, and supply chain, although the full extent is uncertain. See Note 3, āImpact of the COVID-19 pandemic,ā for additional details. In addition, the Companyās business is subject to seasonal fluctuation, with significant portions of the Companyās net sales and net income being realized during the fourth quarter of the fiscal year due to the holiday selling season. As a result, the results for the 13 and 39 weeks ended October 31, 2020 are not necessarily indicative of the results to be expected for the fiscal year ending January 30, 2021, or for any other future interim period or for any future year. These interim consolidated financial statements and the related notes should be read in conjunction with the consolidated financial statements and notes included in the Companyās Annual Report on Form 10-K for the year ended February 1, 2020. 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 | 9 Months Ended |
Oct. 31, 2020 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2. Summary of significant accounting policies Information regarding the Companyās significant accounting policies is contained in Note 2, āSummary of significant accounting policies,ā to the consolidated financial statements in the Companyās Annual Report on Form 10-K for the year ended February 1, 2020. Presented below and in the following notes is supplemental information that should be read in conjunction with āNotes to Consolidated Financial Statementsā in the Annual Report. Fiscal quarter The Companyās quarterly periods are the 13 weeks ending on the Saturday closest to April 30, July 31, October 31, and January 31. The Companyās third quarter in fiscal 2020 and 2019 ended on October 31, 2020 and November 2, 2019, 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. The Company considers its accounting policies relating to inventory valuations, vendor allowances, impairment of long-lived tangible and operating lease assets, loyalty program and income taxes to be the most significant accounting policies that involve management estimates and judgments. The COVID-19 pandemic has created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further business disruptions and adversely impact the Companyās results of operations. While the full impact of the COVID-19 pandemic is unknown and cannot be reasonably estimated, the Company has made accounting estimates based on the facts and circumstances available as of the reporting date. Actual amounts could differ from these estimates, and such differences could be material. Recent accounting pronouncements not yet adopted Taxes ā Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. In December 2019, the Financial Accounting Standards Board (FASB) issued (ASU) 2019-12, Income Taxes ā Simplifying the Accounting for Income Taxes. The guidance removes certain exceptions for recognizing deferred taxes for equity method investments, performing intraperiod allocation, and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for goodwill and allocating taxes to members of a consolidated group, among others. This guidance is effective after December 15, 2020. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The transition requirements are dependent upon each amendment within this update and will be applied either prospectively or retrospectively. The adoption of ASU 2019-12 is not expected to have a material impact on the Companyās consolidated financial position, results of operations, or cash flows. ā Recently adopted accounting pronouncements Intangibles ā Goodwill and Other-Internal-Use Software. ā |
Impact of the COVID-19 pandemic
Impact of the COVID-19 pandemic | 9 Months Ended |
Oct. 31, 2020 | |
Impact of the COVID-19 pandemic | |
Impact of the COVID-19 pandemic | 3. Impact of the COVID-19 pandemic In March 2020, the World Health Organization declared COVID-19 a global pandemic. In response to federal, state, and local government restrictions and recommendations and for the health and safety of our associates and guests, the Company temporarily closed all stores effective March 19, 2020. Effective April 19, 2020, the Company temporarily furloughed many store and salon associates and introduced curbside pickup, and on May 11, 2020, the Company started a phased store reopening process. By July 20, 2020, the full fleet of Ulta Beauty stores was operational. By October 31, 2020, salon and brow services had resumed in almost all stores. Reflecting operational limitations related to COVID-19 and the partial resumption of services, the Company has reactivated more than half of the furloughed associates. Results of operations for the 13 and 39 weeks ended October 31, 2020 were significantly impacted by the effects of COVID-19, and the pandemic is expected to continue to have a negative impact on the Companyās business, financial condition, profitability, cash flows, and supply chain, although the full extent is uncertain. As COVID-19 continues to evolve and resurgences occur, the extent of the impact on the Companyās business, financial condition, profitability, cash flows, and supply chain will depend on future developments, including, but not limited to, the potential temporary reclosing of certain stores, the potential temporary restrictions on certain store operating hours and/or in-store capacity, the duration of potential future quarantines, shelter-in-place and other travel restrictions within the U.S. and other affected countries, the severity of the virus, the duration and spread of the virus, the duration, timing and severity of the impact on consumer spending, how quickly and to what extent normal economic and operating conditions can resume, and the publicās response to resurgences of the virus and its eventual aftermath, all of which are highly uncertain and cannot be predicted. The multi-year, strategic investments the Company has made to enhance omnichannel and supply chain capabilities, combined with the ongoing commitment of the Companyās distribution associates, have enabled the Company to support increased e-commerce demand and guest engagement. The Company has taken the following steps to preserve financial liquidity through these unprecedented circumstances: ā the drawdown of $800,000 on March 18, 2020 under the Companyās revolving credit facility, which was repaid in full on September 2, 2020; ā limited new hires and delayed merit increases for all corporate, store, and salon associates; ā reduced marketing, travel and controllable expenses; ā aligned inventory receipts with current sales trends; ā prioritized payment obligations; ā reduced new store openings, relocations and remodel projects; and ā suspended the Companyās stock repurchase program, which may be resumed in the fourth quarter of fiscal 2020. ā The Company evaluates long-lived assets for indicators of impairment quarterly or when events or changes in circumstances indicate that their carrying amounts may not be recoverable. As a result of the COVID-19 pandemic, the Company experienced lower than projected revenues and identified indicators of impairment for certain stores, which resulted in the recording of certain long-lived asset impairment and restructuring charges. See Note 5, āImpairment, restructuring and other costs,ā for additional details. CARES Act On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was enacted. The CARES Act, among other things, includes provisions relating to refundable payroll taxes, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The most significant relief measures which the Company qualifies for are the employee retention credit, payroll tax deferral, and The Company recognizes government grants for which there is a reasonable assurance of compliance with grant conditions and receipt of credits. will continue to assess the treatment of the CARES Act to the extent additional guidance and regulations are issued, the further applic Employee retention credit (ERC) and payroll tax deferral. Additionally, the CARES Act contains provisions for deferral of the employer portion of social security taxes incurred through the end of calendar 2020 of which 50% are required to be Technical corrections to tax depreciation. he Company expects the changes to qualified impairment property depreciation to result in reductions to estimated income tax payments for fiscal 2020. ā ā ā ā ā |
Revenue
Revenue | 9 Months Ended |
Oct. 31, 2020 | |
Revenue | |
Revenue | 4 . Revenue The Companyās net sales include retail stores and e-commerce merchandise sales as well as salon services and other revenue. Other revenue sources include the private label and co-branded credit card programs, as well as deferred revenue related to the loyalty program and gift card breakage. Disaggregated revenue ā The following table sets forth the approximate percentage of net sales by primary category: ā ā ā ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended ā ā 39 Weeks Ended (Percentage of net sales) ā October 31, 2020 ā November 2, 2019 ā ā October 31, 2020 ā November 2, 2019 Cosmetics ā 45% ā 51% ā ā 46% ā 50% Skincare, bath, and fragrance ā 26% ā 21% ā ā 26% ā 21% Haircare products and styling tools ā 21% ā 18% ā ā 20% ā 19% Services ā 4% ā 6% ā ā 4% ā 6% Other (nail products, accessories, and other) ā 4% ā 4% ā ā 4% ā 4% ā ā 100% ā 100% ā ā 100% ā 100% ā Deferred revenue ā Deferred revenue primarily represents contract liabilities for the Companyās 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, the Company recognizes breakage on gift cards proportionately as redemption occurs. ā The following table provides a summary of the changes included in deferred revenue: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended ā 39 Weeks Ended (In thousands) ā October 31, 2020 ā November 2, 2019 ā October 31, 2020 ā November 2, 2019 Beginning balance ā $ 207,746 ā $ 171,953 ā $ 230,011 ā $ 193,585 Additions to contract liabilities (1) ā ā 40,932 ā ā 66,167 ā ā 128,402 ā ā 145,728 Deductions to contract liabilities (2) ā ā (39,032) ā ā (62,816) ā ā (148,767) ā ā (164,009) Ending balance ā $ 209,646 ā $ 175,304 ā $ 209,646 ā $ 175,304 (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. ā Other amounts included in deferred revenue were $15,216 and $14,884 at October 31, 2020 and November 2, 2019, respectively. |
Impairment, restructuring and o
Impairment, restructuring and other costs | 9 Months Ended |
Oct. 31, 2020 | |
Impairment, restructuring and other costs | |
Impairment, restructuring and other costs | 5. Impairment, restructuring and other costs Impairment of long-lived tangible assets The asset group is defined as the lowest level for which identifiable cash flows are available and largely independent of the cash flows of other groups of assets. The asset group identified is at the store level and includes both property and equipment and operating lease assets. Significant estimates are used in determining future cash flows of each store over its remaining lease term including our expectations of future projected cash flows including revenues, operating expenses, and market conditions. An impairment loss is recorded if the carrying amount of the long-lived asset exceeds its fair value. The Company evaluates long-lived assets for indicators of impairment quarterly or when events or changes in circumstances indicate that their carrying amounts may not be recoverable. The Company performs an undiscounted cash flow analysis over the long-lived assets. Asset groups are written down only to the extent that their carrying value is lower than their respective fair value. Fair values of the asset group are determined by discounting the cash flows at a rate that approximates the cost of capital of a market participant. Managementās forecast of future cash flows is based on the income approach. The fair value of individual operating lease assets is determined using estimated market rent assessments. As a result of the COVID-19 pandemic, the Company experienced lower than projected revenues and identified indicators of impairment for certain stores. The Companyās analysis indicated that the carrying values of certain long-lived assets exceeded their respective fair values. As a result, the Company recognized an impairment charge of $40,428 for the 26 weeks ended August 1, 2020. There were no asset impairment charges recognized during the 13 weeks ended October 31, 2020. These charges are recorded in impairment, restructuring and other costs in the consolidated statements of operations. These impairment charges were primarily driven by lower than projected revenues, lower market rate assessments, and the effect of temporary store closures as a result of the COVID-19 pandemic. The determination of estimated market rent used in the fair value estimate of the Companyās operating lease assets included within the respective store asset group requires significant management judgment. Changes in these estimates could have a significant impact on whether long-lived store assets should be further evaluated for impairment and could have a significant impact on the resulting impairment charge. The significant estimates, all of which are considered Level 3 inputs, used in the fair value methodology include: the Companyās expectations for future operations and projected cash flows, including revenues, operating expenses, and market conditions. Restructuring and other costs The following table provides a summary of the restructuring and other charges included in impairment, restructuring and other costs in the consolidated statements of operations: ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended ā 39 Weeks Ended ā ā October 31, ā October 31, (In thousands) 2020 2020 Store Closures ā ā ā ā ā ā Long-lived asset impairment charges (1) ā $ ā ā $ 19,569 Lease termination costs ā ā 1,844 ā ā 1,844 Severance (2) ā ā 186 ā ā 489 Suspension of Canadian expansion ā ā ā ā ā ā Long-lived asset impairment charges (1) ā $ 9,935 ā $ 9,935 Lease termination costs ā ā 5,317 ā ā 5,317 Severance (2) ā ā 634 ā ā 634 Other Severance (2) ā $ 5,708 ā $ 5,708 Total ā $ 23,624 ā $ 43,496 (1) The significant estimates, all of which are considered Level 3 inputs, used in the fair value methodology include: the Companyās expectations for future operations and projected cash flows, including revenues, operating expenses, and market conditions. (2) As of October 31, 2020, the Company's restructuring accrual recorded in accrued liabilities on the consolidated balance sheets was $6,202 and is primarily for severance. Store closures. Suspension of Canadian expansion. In 2019, the Company announced plans to expand internationally with an initial launch into Canada. The Company continues to believe international markets provide a long-term growth opportunity for the Company. However, given the current operating environment, in September 2020 the Company decided to prioritize growth of its U.S. operations at this time and suspended its planned expansion to Canada. Investments to support the expansion into Canada have largely been limited to early-stage infrastructure buildout and lease obligations for a small number of stores. In conjunction with this decision, the Company expects to incur pre-tax costs in the range of Other severance. As part of the efforts to optimize its cost structure, the Company eliminated the salon manager and prestige manager roles and created a new, single service manager. During the 13 and 39 weeks ended October 31, 2020, the Company recognized severance charges of ā |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Oct. 31, 2020 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | 6. Goodwill and other intangible assets Goodwill, which represents the excess of cost over the fair value of net assets acquired, amounted to $10,870 at October 31, 2020, February 1, 2020, and November 2, 2019. No additional goodwill was recognized during the 13 and 39 weeks ended October 31, 2020. The Company reviews the recoverability of goodwill annually during the fourth quarter or more frequently if an event occurs or circumstances change that would indicate that impairment may exist. Other intangible assets with finite useful lives are amortized over their useful lives. The Company reviews the recoverability of long-lived assets whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. As a result of the COVID-19 pandemic and decline in the macroeconomic environment, the Company performed an interim impairment analysis as of October 31, 2020, which indicated that no impairment existed for goodwill or other intangible assets. |
Leases
Leases | 9 Months Ended |
Oct. 31, 2020 | |
Leases | |
Leases | 7. Leases The Company leases retail stores, distribution and fast fulfillment centers, corporate offices, and certain equipment under non-cancellable operating leases with various expiration dates through 2033. Leases generally have an initial lease term of 10 years and 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. ā All retail store, distribution and fast fulfillment center, and corporate office leases are classified as operating leases. The Company does not have any finance leases. ā Lease cost The majority of operating lease cost relates to retail stores and distribution 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. Operating lease cost was $75,649 and $72,467 for the 13 weeks ended October 31, 2020 and November 2, 2019, respectively. Operating lease cost was $228,881 and $215,388 for the 39 weeks ended October 31, 2020 and November 2, 2019, respectively. ā Other information The following table presents supplemental disclosures of cash flow information related to operating leases: ā ā ā ā ā ā ā ā ā 39 Weeks Ended (In thousands) ā October 31, 2020 ā November 2, 2019 Cash paid for operating lease liabilities (1) ā $ 263,893 ā $ 251,468 Operating lease assets obtained in exchange for operating lease liabilities (non-cash) ā ā 188,240 ā ā 287,645 (1) Excludes cash received for tenant incentives of $22,789 and $57,160 for the 39 weeks ended October 31, 2020 and November 2, 2019, respectively. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Oct. 31, 2020 | |
Commitments and contingencies | |
Commitments and contingencies | 8. 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 Companyās consolidated financial position, results of operations or cash flows. |
Debt
Debt | 9 Months Ended |
Oct. 31, 2020 | |
Debt | |
Debt | 9. 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 Companyās assets are pledged as collateral for outstanding borrowings under the Loan Agreement. Outstanding borrowings bear interest, at the Companyās 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 Companyās borrowing availability, and the unused line fee is 0.20% per annum. As of October 31, 2020, February 1, 2020, and November 2, 2019, the Company had no borrowings outstanding under the credit facility and the weighted average interest rate was 1.56% for the 39 weeks ended October 31, 2020. As of October 31, 2020, the Company was in compliance with all terms and covenants of the Loan Agreement. |
Fair value measurements
Fair value measurements | 9 Months Ended |
Oct. 31, 2020 | |
Fair value measurements | |
Fair value measurements | 10. Fair value measurements The carrying value of cash and cash equivalents, short-term investments, 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: ā Level 1 ā observable inputs such as quoted prices for identical instruments in active markets. ā Level 2 ā inputs other than quoted prices in active markets that are observable either directly or indirectly through corroboration with observable market data. ā Level 3 ā unobservable inputs in which there is little or no market data, which would require the Company to develop its own assumptions. ā As of October 31, 2020, February 1, 2020, and November 2, 2019, the Company held financial liabilities included in other long-term liabilities on the consolidated balance sheets of $29,240, $29,442, and $27,417, respectively, related to its non-qualified deferred compensation plan. The liabilities have been categorized as Level 2 as they are based on third-party reported values, which are based primarily on quoted market prices of underlying assets of the funds within the plan. Some assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. These assets can include long-lived assets and goodwill that are reduced to fair value when impaired. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs. |
Investments
Investments | 9 Months Ended |
Oct. 31, 2020 | |
Investments | |
Investments | 11 . Investments ā Short-term investments typically consist of certificates of deposit and are carried at cost, which approximates fair value and are recorded in the consolidated balance sheets in short-term investments. The Company did not have short-term investments as of October 31, 2020 and November 2, 2019. The Companyās short-term investments were $110,000 as of February 1, 2020. ā The Companyās investments in renewable energy projects are accounted for under the equity method of accounting. The balance of these investments was $3,642, $3,936, and $11,000 as of October 31, 2020, February 1, 2020, and November 2, 2019, respectively, and is included in other long-term assets on the consolidated balance sheets. The Company contributed capital of $5,665 and received distributions including $1,690 of investment tax credits during the 39 weeks ended October 31, 2020. The Company contributed capital of $43,757 and received distributions including $31,554 of investment tax credits during the 39 weeks ended November 2, 2019. |
Stock-based compensation
Stock-based compensation | 9 Months Ended |
Oct. 31, 2020 | |
Stock-based compensation | |
Stock-based compensation | 12. Stock-based compensation The Company measures stock-based compensation expense on the grant date, based on the fair value of the award, and recognizes the expense on a straight-line basis over the requisite service period for awards expected to vest. The Company estimated the grant date fair value of stock options using a Black-Scholes valuation model using the following weighted-average assumptions for the periods indicated: ā ā ā ā ā ā ā 39 Weeks Ended ā ā October 31, ā November 2, ā 2020 2019 Volatility rate 43.0% ā 31.0% Average risk-free interest rate 0.3% ā 2.3% Average expected life (in years) 3.4 3.5 Dividend yield None None ā The Company granted 248 and 97 stock options during the 39 weeks ended October 31, 2020 and November 2, 2019, respectively. The stock-based compensation expense for stock options was $2,900 and $2,204 for the 13 weeks ended October 31, 2020 and November 2, 2019, respectively. The stock-based compensation expense for stock options was $8,247 and $6,523 for the 39 weeks ended October 31, 2020 and November 2, 2019, respectively. The weighted-average grant date fair value of these stock options was $54.40 and $89.91 for the 39 weeks ended October 31, 2020 and November 2, 2019, respectively. At October 31, 2020, there was approximately $20,691 of unrecognized stock-based compensation expense related to unvested stock options. The Company issued 161 and 52 restricted stock units during the 39 weeks ended October 31, 2020 and November 2, 2019, respectively. The stock-based compensation expense for restricted stock units was $5,098 and $3,429 for the 13 weeks ended October 31, 2020 and November 2, 2019, respectively. The stock-based compensation expense for restricted stock units was $14,446 and $9,672 for the 39 weeks ended October 31, 2020 and November 2, 2019, respectively. At October 31, 2020, there was approximately $34,048 of unrecognized stock-based compensation expense related to restricted stock units. The Company did not issue any performance-based restricted stock units during the 39 weeks ended October 31, 2020. The Company issued 21 performance-based restricted stock units during the 39 weeks ended November 2, 2019. The stock-based compensation expense for performance-based restricted stock units was $386 for the 13 weeks ended October 31, 2020. The stock-based compensation benefit for performance-based restricted stock units was $122 for the 13 weeks ended November 2, 2019. The stock-based compensation expense for performance-based restricted stock units was $286 and $2,979 for the 39 weeks ended October 31, 2020 and November 2, 2019, respectively. At October 31, 2020, there was approximately $613 of unrecognized stock-based compensation expense related to performance-based restricted stock units. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 2020 | |
Income Taxes | |
Income Taxes | 13. 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 $25,096 for the 13 weeks ended October 31, 2020 represents an effective tax rate of 25.1%, compared to $38,933 of tax expense representing an effective tax rate of 23.1 % for the 13 weeks ended November 2, 2019. The higher effective tax rate is primarily due to less investment tax credits received. Income tax expense of $2,935 for the 39 weeks ended October 31, 2020 represents an effective tax rate of 40.3%, compared to $134,729 of tax expense representing an effective tax rate of 21.8% for the 39 weeks ended November 2, 2019. The higher effective tax rate is primarily due to a near break-even pre-tax operating income in fiscal 2020, less investment tax credits received, and tax expense from the income tax accounting for share-based compensation compared to a tax benefit in fiscal 2019. |
Net income per common share
Net income per common share | 9 Months Ended |
Oct. 31, 2020 | |
Net income per common share | |
Net income per common share | 14. Net income per common share The following is a reconciliation of net income ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended ā 39 Weeks Ended ā ā October 31, ā November 2, ā October 31, ā November 2, (In thousands, except per share data) 2020 2019 2020 2019 Numerator: ā ā ā ā ā ā ā ā ā ā ā ā Net income $ 74,798 ā $ 129,747 ā $ 4,341 ā $ 483,226 ā ā ā ā ā ā ā ā ā ā ā ā ā Denominator: ā ā ā ā ā ā ā ā ā ā ā ā Weighted-average common shares ā Basic ā ā 56,327 ā ā 57,568 ā ā 56,355 ā ā 58,123 Dilutive effect of stock options and non-vested stock ā ā 219 ā ā 195 ā ā 169 ā ā 273 Weighted-average common shares ā Diluted ā ā 56,546 ā ā 57,763 ā ā 56,524 ā ā 58,396 ā ā ā ā ā ā ā ā ā ā ā ā ā Net income per common share: ā ā ā ā ā ā ā ā ā ā ā ā Basic ā $ 1.33 ā $ 2.25 ā $ 0.08 ā $ 8.31 Diluted ā $ 1.32 ā $ 2.25 ā $ 0.08 ā $ 8.27 ā The denominator for diluted net income per common share for the 13 weeks ended October 31, 2020 and November 2, 2019 excludes 246 and 219 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 39 weeks ended October 31, 2020 and November 2, 2019 excludes 562 and 217 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 | 9 Months Ended |
Oct. 31, 2020 | |
Share repurchase program | |
Share repurchase program | 15. Share repurchase program On March 15, 2018, the Company announced that the Board of Directors authorized a share repurchase program (the 2018 Share Repurchase Program) pursuant to which the Company could repurchase up to $625,000 of the Companyās common stock. The 2018 Share Repurchase Program authorization revoked the previously authorized but unused amount of $41,317 from the earlier share repurchase program. The 2018 Share Repurchase Program did not have an expiration date but provided for suspension or discontinuation at any time. On March 14, 2019, the Company announced that the Board of Directors authorized a new share repurchase program (the 2019 Share Repurchase Program) pursuant to which the Company could repurchase up to $875,000 of the Companyās common stock. The 2019 Share Repurchase Program authorization revoked the previously authorized but unused amount of $25,435 from the 2018 Share Repurchase Program. The 2019 Share Repurchase Program did not have an expiration date but provided for suspension or discontinuation at any time. On March 12, 2020, the Company announced that the Board of Directors authorized a new share repurchase program (the 2020 Share Repurchase Program) pursuant to which the Company may repurchase up to $1,600,000 of the Companyās common stock. The 2020 Share Repurchase Program authorization revoked the previously authorized but unused amounts of $165,309 from the 2019 Share Repurchase Program. The 2020 Share Repurchase Program does not have an expiration date and may be suspended or discontinued at any time. On April 2, 2020, the Company announced that the share repurchase program had been suspended in order to strengthen its liquidity and preserve cash in the early stages of the COVID-19 pandemic. The Company may resume the 2020 Share Repurchase Program in the fourth quarter of fiscal 2020. A summary of the Companyās common stock repurchase activity is presented in the following table: ā ā ā ā ā ā ā ā ā 39 Weeks Ended (In thousands) ā October 31, 2020 ā November 2, 2019 Shares repurchased ā ā 327 ā ā 1,639 Total cost of shares repurchased ā $ 72,981 ā $ 506,868 ā ā |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 9 Months Ended |
Oct. 31, 2020 | |
Summary of significant accounting policies | |
Fiscal quarter | Fiscal quarter The Companyās quarterly periods are the 13 weeks ending on the Saturday closest to April 30, July 31, October 31, and January 31. The Companyās third quarter in fiscal 2020 and 2019 ended on October 31, 2020 and November 2, 2019, 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. The Company considers its accounting policies relating to inventory valuations, vendor allowances, impairment of long-lived tangible and operating lease assets, loyalty program and income taxes to be the most significant accounting policies that involve management estimates and judgments. The COVID-19 pandemic has created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further business disruptions and adversely impact the Companyās results of operations. While the full impact of the COVID-19 pandemic is unknown and cannot be reasonably estimated, the Company has made accounting estimates based on the facts and circumstances available as of the reporting date. Actual amounts could differ from these estimates, and such differences could be material. |
Recent accounting pronouncements not yet adopted and Recently adopted accounting pronouncements | Recent accounting pronouncements not yet adopted Taxes ā Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. In December 2019, the Financial Accounting Standards Board (FASB) issued (ASU) 2019-12, Income Taxes ā Simplifying the Accounting for Income Taxes. The guidance removes certain exceptions for recognizing deferred taxes for equity method investments, performing intraperiod allocation, and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for goodwill and allocating taxes to members of a consolidated group, among others. This guidance is effective after December 15, 2020. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The transition requirements are dependent upon each amendment within this update and will be applied either prospectively or retrospectively. The adoption of ASU 2019-12 is not expected to have a material impact on the Companyās consolidated financial position, results of operations, or cash flows. ā Recently adopted accounting pronouncements Intangibles ā Goodwill and Other-Internal-Use Software. |
Business and basis of present_2
Business and basis of presentation (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Business and basis of presentation | |
Schedule of stores operated by geographic area | ā ā ā ā ā ā ā ā ā Number of ā ā ā Number of Location stores Location stores Alabama ā 22 ā Montana ā 6 Alaska ā 3 ā Nebraska ā 5 Arizona ā 30 ā Nevada ā 15 Arkansas ā 10 ā New Hampshire ā 7 California ā 156 ā New Jersey ā 41 Colorado ā 26 ā New Mexico ā 7 Connecticut ā 17 ā New York ā 49 Delaware ā 3 ā North Carolina ā 34 Florida ā 86 ā North Dakota ā 3 Georgia ā 38 ā Ohio ā 43 Hawaii ā 4 ā Oklahoma ā 21 Idaho ā 9 ā Oregon ā 17 Illinois ā 55 ā Pennsylvania ā 44 Indiana ā 24 ā Rhode Island ā 3 Iowa ā 10 ā South Carolina ā 20 Kansas ā 13 ā South Dakota ā 3 Kentucky ā 15 ā Tennessee ā 27 Louisiana ā 18 ā Texas ā 117 Maine ā 3 ā Utah ā 14 Maryland ā 27 ā Vermont ā 1 Massachusetts ā 21 ā Virginia ā 30 Michigan ā 48 ā Washington ā 34 Minnesota ā 18 ā West Virginia ā 7 Mississippi ā 10 ā Wisconsin ā 20 Missouri ā 25 ā Wyoming ā 3 ā ā ā ā Total ā 1,262 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
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: ā ā ā ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended ā ā 39 Weeks Ended (Percentage of net sales) ā October 31, 2020 ā November 2, 2019 ā ā October 31, 2020 ā November 2, 2019 Cosmetics ā 45% ā 51% ā ā 46% ā 50% Skincare, bath, and fragrance ā 26% ā 21% ā ā 26% ā 21% Haircare products and styling tools ā 21% ā 18% ā ā 20% ā 19% Services ā 4% ā 6% ā ā 4% ā 6% Other (nail products, accessories, and other) ā 4% ā 4% ā ā 4% ā 4% ā ā 100% ā 100% ā ā 100% ā 100% |
Summary of changes in deferred revenue | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended ā 39 Weeks Ended (In thousands) ā October 31, 2020 ā November 2, 2019 ā October 31, 2020 ā November 2, 2019 Beginning balance ā $ 207,746 ā $ 171,953 ā $ 230,011 ā $ 193,585 Additions to contract liabilities (1) ā ā 40,932 ā ā 66,167 ā ā 128,402 ā ā 145,728 Deductions to contract liabilities (2) ā ā (39,032) ā ā (62,816) ā ā (148,767) ā ā (164,009) Ending balance ā $ 209,646 ā $ 175,304 ā $ 209,646 ā $ 175,304 |
Impairment, restructuring and_2
Impairment, restructuring and other costs (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Impairment, restructuring and other costs | |
Summary of the restructuring and other charges included in impairment, restructuring and other costs | ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended ā 39 Weeks Ended ā ā October 31, ā October 31, (In thousands) 2020 2020 Store Closures ā ā ā ā ā ā Long-lived asset impairment charges (1) ā $ ā ā $ 19,569 Lease termination costs ā ā 1,844 ā ā 1,844 Severance (2) ā ā 186 ā ā 489 Suspension of Canadian expansion ā ā ā ā ā ā Long-lived asset impairment charges (1) ā $ 9,935 ā $ 9,935 Lease termination costs ā ā 5,317 ā ā 5,317 Severance (2) ā ā 634 ā ā 634 Other Severance (2) ā $ 5,708 ā $ 5,708 Total ā $ 23,624 ā $ 43,496 (1) The significant estimates, all of which are considered Level 3 inputs, used in the fair value methodology include: the Companyās expectations for future operations and projected cash flows, including revenues, operating expenses, and market conditions. (2) As of October 31, 2020, the Company's restructuring accrual recorded in accrued liabilities on the consolidated balance sheets was $6,202 and is primarily for severance. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Leases | |
Schedule of cash flow information related to operating leases | The following table presents supplemental disclosures of cash flow information related to operating leases: ā ā ā ā ā ā ā ā ā 39 Weeks Ended (In thousands) ā October 31, 2020 ā November 2, 2019 Cash paid for operating lease liabilities (1) ā $ 263,893 ā $ 251,468 Operating lease assets obtained in exchange for operating lease liabilities (non-cash) ā ā 188,240 ā ā 287,645 (1) Excludes cash received for tenant incentives of $22,789 and $57,160 for the 39 weeks ended October 31, 2020 and November 2, 2019, respectively. |
Stock-based compensation (Table
Stock-based compensation (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Stock-based compensation | |
Schedule of weighted average assumptions to determine grant date fair value of employee stock options | ā ā ā ā ā ā ā 39 Weeks Ended ā ā October 31, ā November 2, ā 2020 2019 Volatility rate 43.0% ā 31.0% Average risk-free interest rate 0.3% ā 2.3% Average expected life (in years) 3.4 3.5 Dividend yield None None |
Net income per common share (Ta
Net income per common share (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
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 share | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended ā 39 Weeks Ended ā ā October 31, ā November 2, ā October 31, ā November 2, (In thousands, except per share data) 2020 2019 2020 2019 Numerator: ā ā ā ā ā ā ā ā ā ā ā ā Net income $ 74,798 ā $ 129,747 ā $ 4,341 ā $ 483,226 ā ā ā ā ā ā ā ā ā ā ā ā ā Denominator: ā ā ā ā ā ā ā ā ā ā ā ā Weighted-average common shares ā Basic ā ā 56,327 ā ā 57,568 ā ā 56,355 ā ā 58,123 Dilutive effect of stock options and non-vested stock ā ā 219 ā ā 195 ā ā 169 ā ā 273 Weighted-average common shares ā Diluted ā ā 56,546 ā ā 57,763 ā ā 56,524 ā ā 58,396 ā ā ā ā ā ā ā ā ā ā ā ā ā Net income per common share: ā ā ā ā ā ā ā ā ā ā ā ā Basic ā $ 1.33 ā $ 2.25 ā $ 0.08 ā $ 8.31 Diluted ā $ 1.32 ā $ 2.25 ā $ 0.08 ā $ 8.27 |
Share repurchase program (Table
Share repurchase program (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Share repurchase program | |
Summary of the Company's common stock repurchase activity | A summary of the Companyās common stock repurchase activity is presented in the following table: ā ā ā ā ā ā ā ā ā 39 Weeks Ended (In thousands) ā October 31, 2020 ā November 2, 2019 Shares repurchased ā ā 327 ā ā 1,639 Total cost of shares repurchased ā $ 72,981 ā $ 506,868 |
Business and basis of present_3
Business and basis of presentation (Details) | Oct. 31, 2020storestate |
Stores by state | |
Number of stores operated | 1,262 |
Number of states in which entity operates | state | 50 |
Alabama | |
Stores by state | |
Number of stores operated | 22 |
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 | 10 |
California | |
Stores by state | |
Number of stores operated | 156 |
Colorado | |
Stores by state | |
Number of stores operated | 26 |
Connecticut | |
Stores by state | |
Number of stores operated | 17 |
Delaware | |
Stores by state | |
Number of stores operated | 3 |
Florida | |
Stores by state | |
Number of stores operated | 86 |
Georgia | |
Stores by state | |
Number of stores operated | 38 |
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 | 10 |
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 | 27 |
Massachusetts | |
Stores by state | |
Number of stores operated | 21 |
Michigan | |
Stores by state | |
Number of stores operated | 48 |
Minnesota | |
Stores by state | |
Number of stores operated | 18 |
Mississippi | |
Stores by state | |
Number of stores operated | 10 |
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 | 15 |
New Hampshire | |
Stores by state | |
Number of stores operated | 7 |
New Jersey | |
Stores by state | |
Number of stores operated | 41 |
New Mexico | |
Stores by state | |
Number of stores operated | 7 |
New York | |
Stores by state | |
Number of stores operated | 49 |
North Carolina | |
Stores by state | |
Number of stores operated | 34 |
North Dakota | |
Stores by state | |
Number of stores operated | 3 |
Ohio | |
Stores by state | |
Number of stores operated | 43 |
Oklahoma | |
Stores by state | |
Number of stores operated | 21 |
Oregon | |
Stores by state | |
Number of stores operated | 17 |
Pennsylvania | |
Stores by state | |
Number of stores operated | 44 |
Rhode Island | |
Stores by state | |
Number of stores operated | 3 |
South Carolina | |
Stores by state | |
Number of stores operated | 20 |
South Dakota | |
Stores by state | |
Number of stores operated | 3 |
Tennessee | |
Stores by state | |
Number of stores operated | 27 |
Texas | |
Stores by state | |
Number of stores operated | 117 |
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 | 30 |
Washington | |
Stores by state | |
Number of stores operated | 34 |
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 | |
Oct. 31, 2020 | Nov. 02, 2019 | |
Summary of significant accounting policies | ||
Fiscal period | 91 days | 91 days |
Impact of the COVID-19 pandem_2
Impact of the COVID-19 pandemic (Details) - USD ($) $ in Thousands | Mar. 18, 2020 | Oct. 31, 2020 | Oct. 31, 2020 |
Revolving credit facility | |||
Reduction of associated costs related to ERC | $ 2,402 | $ 50,583 | |
Deferred social security tax payments | 34,060 | 34,060 | |
Amount of cash tax refund | $ 4,600 | $ 4,600 | |
Revolving loans | |||
Revolving credit facility | |||
Proceeds from Lines of Credit | $ 800,000 |
Revenue - Disaggregated revenue
Revenue - Disaggregated revenue (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Disaggregated revenue | ||||
Concentration (as a percent) | 100.00% | 100.00% | 100.00% | 100.00% |
Cosmetics | ||||
Disaggregated revenue | ||||
Concentration (as a percent) | 45.00% | 51.00% | 46.00% | 50.00% |
Skincare, bath, and fragrance | ||||
Disaggregated revenue | ||||
Concentration (as a percent) | 26.00% | 21.00% | 26.00% | 21.00% |
Haircare products and styling tools | ||||
Disaggregated revenue | ||||
Concentration (as a percent) | 21.00% | 18.00% | 20.00% | 19.00% |
Services | ||||
Disaggregated revenue | ||||
Concentration (as a percent) | 4.00% | 6.00% | 4.00% | 6.00% |
Other (nail products, accessories, and other) | ||||
Disaggregated revenue | ||||
Concentration (as a percent) | 4.00% | 4.00% | 4.00% | 4.00% |
Revenue - Deferred revenue (Det
Revenue - Deferred revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Summary of changes in deferred revenue | ||||
Balance at beginning of period | $ 207,746 | $ 171,953 | $ 230,011 | $ 193,585 |
Additions to contract liabilities | 40,932 | 66,167 | 128,402 | 145,728 |
Deductions to contract liabilities | (39,032) | (62,816) | (148,767) | (164,009) |
Balance at end of period | 209,646 | 175,304 | 209,646 | 175,304 |
Other amounts included in deferred revenue | $ 15,216 | $ 14,884 | $ 15,216 | $ 14,884 |
Impairment, restructuring and_3
Impairment, restructuring and other costs - Impairment of long-lived tangible assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Oct. 31, 2020 | Aug. 01, 2020 | Oct. 31, 2020 | |
Long-lived asset impairment charges | |||
Long-lived asset impairment charge | $ 40,428 | $ 69,932 | |
Long-lived asset impairment charges, restructuring and other costs | $ 0 |
Impairment, restructuring and_4
Impairment, restructuring and other costs - Restructuring and other costs - Tabular disclosure (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Aug. 01, 2020 | Oct. 31, 2020 | Nov. 02, 2019 | |
Restructuring and other costs | |||||
Long-lived asset impairment charge | $ 40,428 | $ 69,932 | |||
Total | $ 23,624 | 83,924 | |||
Restructuring and other | |||||
Restructuring and other costs | |||||
Total | 23,624 | 43,496 | |||
Store Closures | |||||
Restructuring and other costs | |||||
Long-lived asset impairment charge | 19,569 | ||||
Lease termination costs | 1,844 | 1,844 | |||
Severance | 186 | 489 | |||
Total | 2,030 | $ 0 | 21,902 | $ 0 | |
Suspension of Canadian Expansion | |||||
Restructuring and other costs | |||||
Long-lived asset impairment charge | 9,935 | 9,935 | |||
Lease termination costs | 5,317 | 5,317 | |||
Severance | 634 | 634 | |||
Total | 15,886 | 0 | 15,886 | 0 | |
Other Severance | |||||
Restructuring and other costs | |||||
Severance | 5,708 | 5,708 | |||
Total | $ 5,708 | $ 0 | $ 5,708 | $ 0 |
Impairment, restructuring and_5
Impairment, restructuring and other costs - Restructuring and other costs - Restructuring accrual (Details) $ in Thousands | Oct. 31, 2020USD ($) |
Restructuring accrual | |
Restructuring accrual recorded in accrued liabilities | $ 6,202 |
Impairment, restructuring and_6
Impairment, restructuring and other costs - Restructuring and other costs - Additional information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2020USD ($) | Nov. 02, 2019USD ($) | Oct. 31, 2020USD ($) | Nov. 02, 2019USD ($) | Aug. 01, 2020store | |
Restructuring and other costs | |||||
Number of store closings | store | 19 | ||||
Impairment, restructuring and other costs | $ 23,624 | $ 83,924 | |||
Restructuring and other | |||||
Restructuring and other costs | |||||
Impairment, restructuring and other costs | 23,624 | 43,496 | |||
Store Closures | |||||
Restructuring and other costs | |||||
Impairment, restructuring and other costs | 2,030 | $ 0 | 21,902 | $ 0 | |
Suspension of Canadian Expansion | |||||
Restructuring and other costs | |||||
Impairment, restructuring and other costs | 15,886 | 0 | 15,886 | 0 | |
Suspension of Canadian Expansion | Minimum | |||||
Restructuring and other costs | |||||
Expected incurred pre-tax costs | 30,000 | 30,000 | |||
Suspension of Canadian Expansion | Maximum | |||||
Restructuring and other costs | |||||
Expected incurred pre-tax costs | 40,000 | 40,000 | |||
Other Severance | |||||
Restructuring and other costs | |||||
Impairment, restructuring and other costs | $ 5,708 | $ 0 | $ 5,708 | $ 0 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2020 | Feb. 01, 2020 | Nov. 02, 2019 | |
Goodwill and Other Intangible Assets | ||||
Goodwill | $ 10,870 | $ 10,870 | $ 10,870 | $ 10,870 |
Additional goodwill recognized | $ 0 | $ 0 |
Leases - Lease costs (Details)
Leases - Lease costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Leases | ||||
Initial lease term | 10 years | 10 years | ||
Lease Costs | ||||
Operating lease cost | $ 75,649 | $ 72,467 | $ 228,881 | $ 215,388 |
Leases - Cash flow information
Leases - Cash flow information and non-cash activity (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2020 | Nov. 02, 2019 | |
Leases | ||
Cash paid for operating lease liabilities | $ 263,893 | $ 251,468 |
Operating lease assets obtained in exchange for operating lease liabilities (non-cash) | 188,240 | 287,645 |
Excluded cash received for tenant incentives | $ 22,789 | $ 57,160 |
Debt (Details)
Debt (Details) - Amendment No. 1 to the Second Amended and Restated Loan Agreement $ in Thousands | 9 Months Ended | ||
Oct. 31, 2020USD ($) | Feb. 01, 2020USD ($) | Nov. 02, 2019USD ($) | |
Notes payable | |||
Unused line fee (as a percent) | 0.20% | ||
Outstanding borrowings under credit facility | $ 0 | $ 0 | $ 0 |
Minimum | |||
Notes payable | |||
Fixed charge coverage ratio covenant | 1 | ||
London Interbank Offered Rate | Minimum | |||
Notes payable | |||
Interest rate margin (as a percent) | 1.125% | ||
London Interbank Offered Rate | Maximum | |||
Notes payable | |||
Interest rate margin (as a percent) | 1.25% | ||
Base Rate | |||
Notes payable | |||
Interest rate margin (as a percent) | 0.00% | ||
Base Rate | Maximum | |||
Notes payable | |||
Interest rate margin (as a percent) | 0.125% | ||
Revolving loans | |||
Notes payable | |||
Maximum borrowing capacity | $ 1,000,000 | ||
Contingent increase to revolving facility | $ 100,000 | ||
Weighted average interest rate | 1.56% | ||
Letters of credit | |||
Notes payable | |||
Maximum borrowing capacity | $ 50,000 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Feb. 01, 2020 | Nov. 02, 2019 |
Level 2 | Non-qualified deferred compensation plan | |||
Fair value measurements | |||
Fair value of financial liabilities | $ 29,240 | $ 29,442 | $ 27,417 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Feb. 01, 2020 | |
Investments | |||
Short-term investments | $ 110,000 | ||
Contributions of capital to equity method investments | $ 5,665 | $ 43,757 | |
Investment tax credits | 1,690 | 31,554 | |
Certificates of deposit | |||
Investments | |||
Short-term investments | 0 | 0 | 110,000 |
Renewable energy projects | |||
Investments | |||
Equity method investments | $ 3,642 | $ 11,000 | $ 3,936 |
Stock-based compensation (Detai
Stock-based compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Stock options | ||||
Weighted-average assumptions to estimate fair value | ||||
Volatility rate (as a percent) | 43.00% | 31.00% | ||
Average risk-free interest rate (as a percent) | 0.30% | 2.30% | ||
Average expected life | 3 years 4 months 24 days | 3 years 6 months | ||
Dividend yield (as a percent) | 0.00% | 0.00% | ||
Granted (in shares) | 248 | 97 | ||
Stock-based compensation expense | $ 2,900 | $ 2,204 | $ 8,247 | $ 6,523 |
Weighted-average grant date fair value of options granted (in dollars per share) | $ 54.40 | $ 89.91 | ||
Unrecognized compensation expense | 20,691 | $ 20,691 | ||
Restricted stock units | ||||
Weighted-average assumptions to estimate fair value | ||||
Stock-based compensation expense | 5,098 | 3,429 | $ 14,446 | $ 9,672 |
Issued (in shares) | 161 | 52 | ||
Unrecognized compensation expense | 34,048 | $ 34,048 | ||
Performance-based restricted stock units | ||||
Weighted-average assumptions to estimate fair value | ||||
Stock-based compensation expense | 386 | 286 | $ 2,979 | |
Stock-based compensation benefit | $ 122 | |||
Issued (in shares) | 21 | |||
Unrecognized compensation expense | $ 613 | $ 613 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Income Taxes | ||||
Income tax expense | $ 25,096 | $ 38,933 | $ 2,935 | $ 134,729 |
Effective tax rate (as a percent) | 25.10% | 23.10% | 40.30% | 21.80% |
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 | 9 Months Ended | ||||||
Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Numerator: | ||||||||
Net income | $ 74,798 | $ 8,052 | $ (78,509) | $ 129,747 | $ 161,258 | $ 192,221 | $ 4,341 | $ 483,226 |
Net income - basic | 74,798 | 129,747 | 4,341 | 483,226 | ||||
Net income - diluted | $ 74,798 | $ 129,747 | $ 4,341 | $ 483,226 | ||||
Denominator: | ||||||||
Weighted-average common shares - Basic | 56,327 | 57,568 | 56,355 | 58,123 | ||||
Dilutive effect of stock options and non-vested stock | 219 | 195 | 169 | 273 | ||||
Weighted-average common shares - Diluted | 56,546 | 57,763 | 56,524 | 58,396 | ||||
Net income per common share: | ||||||||
Basic | $ 1.33 | $ 2.25 | $ 0.08 | $ 8.31 | ||||
Diluted | $ 1.32 | $ 2.25 | $ 0.08 | $ 8.27 |
Net income per common share - A
Net income per common share - Anti-dilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Net income per common share | ||||
Employee stock options and restricted stock units excluded from the computation of net income per common share | 246 | 219 | 562 | 217 |
Share repurchase program (Detai
Share repurchase program (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
May 02, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | Mar. 12, 2020 | Mar. 14, 2019 | Mar. 15, 2018 | |
Share repurchase program | |||||||||
Shares repurchased (in shares) | 327 | 1,639 | |||||||
Common stock repurchased and retired | $ 72,981 | $ 128,568 | $ 270,901 | $ 107,399 | $ 72,981 | $ 506,868 | |||
2017 Share Repurchase Program | |||||||||
Share repurchase program | |||||||||
Remaining authorized amount from earlier share repurchase program | $ 41,317 | ||||||||
2018 Share Repurchase Program | |||||||||
Share repurchase program | |||||||||
Remaining authorized amount from earlier share repurchase program | $ 25,435 | ||||||||
2018 Share Repurchase Program | Maximum | |||||||||
Share repurchase program | |||||||||
Authorized amount of share repurchase program | $ 625,000 | ||||||||
2019 Share Repurchase Program | |||||||||
Share repurchase program | |||||||||
Authorized amount of share repurchase program | $ 875,000 | ||||||||
Remaining authorized amount from earlier share repurchase program | $ 165,309 | ||||||||
2020 Share Repurchase Program | |||||||||
Share repurchase program | |||||||||
Authorized amount of share repurchase program | $ 1,600,000 |