ULTA BEAUTY, INC., 10-Q filed on 8/31/2017
Quarterly Report
Document and Entity Information
6 Months Ended
Jul. 29, 2017
Aug. 28, 2017
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jul. 29, 2017 
 
Document Fiscal Year Focus
2017 
 
Document Fiscal Period Focus
Q2 
 
Trading Symbol
ULTA 
 
Entity Registrant Name
Ulta Beauty, Inc. 
 
Entity Central Index Key
0001403568 
 
Current Fiscal Year End Date
--02-03 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
61,430,613 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Jul. 29, 2017
Jan. 28, 2017
Jul. 30, 2016
Current assets:
 
 
 
Cash and cash equivalents
$ 92,860 
$ 385,010 
$ 194,084 
Short-term investments
180,000 
30,000 
110,000 
Receivables, net
67,593 
88,631 
55,998 
Merchandise inventories, net
1,144,702 
943,975 
930,205 
Prepaid expenses and other current assets
98,215 
88,621 
82,720 
Prepaid income taxes
9,124 
 
3,075 
Total current assets
1,592,494 
1,536,237 
1,376,082 
Property and equipment, net
1,095,135 
1,004,358 
919,597 
Deferred compensation plan assets
14,588 
11,283 
10,109 
Total assets
2,702,217 
2,551,878 
2,305,788 
Current liabilities:
 
 
 
Accounts payable
313,483 
259,518 
285,238 
Accrued liabilities
256,794 
260,854 
205,918 
Accrued income taxes
 
8,971 
1,089 
Total current liabilities
570,277 
529,343 
492,245 
Deferred rent
387,670 
366,191 
345,441 
Deferred income taxes
85,181 
86,498 
58,477 
Other long-term liabilities
23,739 
19,628 
17,688 
Total liabilities
1,066,867 
1,001,660 
913,851 
Commitments and contingencies (Note 3)
   
   
   
Stockholders' equity:
 
 
 
Common stock, $0.01 par value, 400,000 shares authorized; 62,263, 62,733 and 63,005 shares issued; 61,645, 62,129 and 62,402 shares outstanding; at July 29, 2017 (unaudited), January 28, 2017 and July 30, 2016 (unaudited), respectively
623 
627 
630 
Treasury stock-common, at cost
(18,551)
(14,524)
(14,102)
Additional paid-in capital
683,156 
658,330 
635,582 
Retained earnings
970,122 
905,785 
769,827 
Total stockholders' equity
1,635,350 
1,550,218 
1,391,937 
Total liabilities and stockholders' equity
$ 2,702,217 
$ 2,551,878 
$ 2,305,788 
Consolidated Balance Sheets (Parenthetical) (USD $)
Jul. 29, 2017
Jan. 28, 2017
Jul. 30, 2016
Statement of Financial Position [Abstract]
 
 
 
Common stock, par value
$ 0.01 
$ 0.01 
$ 0.01 
Common stock, shares authorized
400,000,000 
400,000,000 
400,000,000 
Common stock, shares issued
62,263,000 
62,733,000 
63,005,000 
Common stock, shares outstanding
61,645,000 
62,129,000 
62,402,000 
Consolidated Statements of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Jul. 29, 2017
Jul. 30, 2016
Income Statement [Abstract]
 
 
 
 
Net sales
$ 1,289,854 
$ 1,069,215 
$ 2,604,733 
$ 2,142,931 
Cost of sales
820,528 
684,377 
1,659,399 
1,367,663 
Gross profit
469,326 
384,838 
945,334 
775,268 
Selling, general and administrative expenses
283,427 
236,380 
566,872 
477,104 
Pre-opening expenses
6,099 
4,689 
10,257 
7,231 
Operating income
179,800 
143,769 
368,205 
290,933 
Interest income, net
(555)
(248)
(893)
(563)
Income before income taxes
180,355 
144,017 
369,098 
291,496 
Income tax expense
66,162 
54,013 
126,682 
109,516 
Net income
$ 114,193 
$ 90,004 
$ 242,416 
$ 181,980 
Net income per common share:
 
 
 
 
Basic
$ 1.84 
$ 1.44 
$ 3.91 
$ 2.90 
Diluted
$ 1.83 
$ 1.43 
$ 3.88 
$ 2.89 
Weighted average common shares outstanding:
 
 
 
 
Basic
61,935 
62,475 
62,018 
62,753 
Diluted
62,379 
62,813 
62,483 
63,067 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Operating activities
 
 
Net income
$ 242,416 
$ 181,980 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
125,582 
97,552 
Deferred income taxes
(1,317)
(1,050)
Non-cash stock compensation charges
11,649 
8,862 
Excess tax benefits from stock-based compensation
 
(4,685)
Loss on disposal of property and equipment
2,348 
3,712 
Change in operating assets and liabilities:
 
 
Receivables
21,038 
8,994 
Merchandise inventories
(200,727)
(168,412)
Prepaid expenses and other current assets
(9,594)
(10,172)
Income taxes
(18,095)
(10,003)
Accounts payable
53,965 
89,064 
Accrued liabilities
(29,557)
(5,099)
Deferred rent
21,479 
23,652 
Other assets and liabilities
806 
5,235 
Net cash provided by operating activities
219,993 
219,630 
Investing activities
 
 
Purchases of short-term investments
(240,000)
(60,000)
Proceeds from short-term investments
90,000 
80,000 
Purchases of property and equipment
(193,210)
(149,595)
Net cash used in investing activities
(343,210)
(129,595)
Financing activities
 
 
Repurchase of common shares
(178,085)
(252,450)
Stock options exercised
13,179 
8,391 
Excess tax benefits from stock-based compensation
 
4,685 
Purchase of treasury shares
(4,027)
(2,417)
Net cash used in financing activities
(168,933)
(241,791)
Net decrease in cash and cash equivalents
(292,150)
(151,756)
Cash and cash equivalents at beginning of period
385,010 
345,840 
Cash and cash equivalents at end of period
92,860 
194,084 
Supplemental cash flow information
 
 
Cash paid for income taxes (net of refunds)
145,494 
120,085 
Non-cash investing activities:
 
 
Change in property and equipment included in accrued liabilities
$ 25,497 
$ 23,666 
Consolidated Statement of Stockholders' Equity (USD $)
In Thousands
Total
Common Stock [Member]
Treasury Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Balance at Jan. 28, 2017
$ 1,550,218 
$ 627 
$ (14,524)
$ 658,330 
$ 905,785 
Balance, Shares at Jan. 28, 2017
 
 
(604)
 
 
Balance, Shares at Jan. 28, 2017
62,733 
62,733 
 
 
 
Stock options exercised and other awards
13,179 
 
13,177 
 
Stock options exercised and other awards, Shares
 
177 
 
 
 
Purchase of treasury shares
(4,027)
 
(4,027)
 
 
Purchase of treasury shares, Shares
 
 
(14)
 
 
Net income for the 26 weeks ended July 29, 2017
242,416 
 
 
 
242,416 
Stock compensation charge
11,649 
 
 
11,649 
 
Repurchase of common shares
(178,085)
(6)
 
 
(178,079)
Repurchase of common shares, Shares
 
(647)
 
 
 
Balance at Jul. 29, 2017
$ 1,635,350 
$ 623 
$ (18,551)
$ 683,156 
$ 970,122 
Balance, Shares at Jul. 29, 2017
 
 
(618)
 
 
Balance, Shares at Jul. 29, 2017
62,263 
62,263 
 
 
 
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 which Ulta Beauty, Inc., which was incorporated as a Delaware corporation in December 2016, became the successor to Ulta Salon, Cosmetics & Fragrance, Inc., the former publicly traded company and now a wholly owned subsidiary of Ulta Beauty, Inc. 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.

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 July 29, 2017, the Company operated 1,010 stores in 48 states and the District of Columbia, as shown in the table below.

 

Location

   Number of
stores
      

Location

   Number of
stores
 

Alabama

     17       

Montana

     5  

Alaska

     3       

Nebraska

     5  

Arizona

     25       

Nevada

     14  

Arkansas

     7       

New Hampshire

     7  

California

     128       

New Jersey

     26  

Colorado

     21       

New Mexico

     6  

Connecticut

     13       

New York

     36  

Delaware

     3       

North Carolina

     28  

District of Columbia

     1       

North Dakota

     3  

Florida

     68       

Ohio

     39  

Georgia

     32       

Oklahoma

     16  

Idaho

     7       

Oregon

     11  

Illinois

     49       

Pennsylvania

     37  

Indiana

     19       

Rhode Island

     3  

Iowa

     8       

South Carolina

     15  

Kansas

     9       

South Dakota

     2  

Kentucky

     10       

Tennessee

     19  

Louisiana

     16       

Texas

     97  

Maine

     3       

Utah

     12  

Maryland

     18       

Virginia

     25  

Massachusetts

     15       

Washington

     24  

Michigan

     43       

West Virginia

     6  

Minnesota

     13       

Wisconsin

     18  

Mississippi

     9       

Wyoming

     2  

Missouri

     17       

Total

     1,010  

The accompanying unaudited consolidated financial statements and related notes have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) 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 consolidated 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 Company’s business is subject to seasonal fluctuation. Significant portions of the Company’s net sales and net income are realized during the fourth quarter of the fiscal year due to the holiday selling season. The results for the 13 and 26 weeks ended July 29, 2017 are not necessarily indicative of the results to be expected for the fiscal year ending February 3, 2018, 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 Company’s Annual Report on Form 10-K for the year ended January 28, 2017. All amounts are stated in thousands, with the exception of per share amounts and number of stores.

Summary of significant accounting policies
Summary of significant accounting policies
2. Summary of significant accounting policies

Information regarding the Company’s significant accounting policies is contained in Note 2, “Summary of significant accounting policies,” to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended January 28, 2017. 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 Company’s second quarter in fiscal 2017 and 2016 ended on July 29, 2017 and July 30, 2016, respectively.

Share-based compensation

The Company measures share-based compensation cost on the grant date, based on the fair value of the award, and recognizes the expense on a straight-line method over the requisite service period for awards expected to vest. The Company estimated the grant date fair value of stock options using a Black-Scholes valuation model using the following weighted-average assumptions for the periods indicated:

 

     26 Weeks Ended  
     July 29,
2017
    July 30,
2016
 

Volatility rate

     31.0     35.0

Average risk-free interest rate

     1.6     1.2

Average expected life (in years)

     3.5       3.5  

Dividend yield

     None       None  

The Company granted 103 and 107 stock options during the 26 weeks ended July 29, 2017 and July 30, 2016, respectively. The compensation cost that has been charged against operating income for stock option grants was $2,235 and $1,999 for the 13 weeks ended July 29, 2017 and July 30, 2016, respectively. The compensation cost that has been charged against operating income for stock option grants was $4,377 and $3,982 for the 26 weeks ended July 29, 2017 and July 30, 2016, respectively. The weighted-average grant date fair value of these options was $70.12 and $52.72 for the 26 weeks ended July 29, 2017 and July 30, 2016, respectively. At July 29, 2017, there was approximately $22,633 of unrecognized compensation expense related to unvested stock options.

The Company issued 42 and 50 restricted stock units during 26 weeks ended July 29, 2017 and July 30, 2016, respectively. The compensation cost that has been charged against operating income for restricted stock units was $2,354 and $1,884 for the 13 weeks ended July 29, 2017 and July 30, 2016, respectively. The compensation cost that has been charged against operating income for restricted stock units was $4,453 and $3,445 for the 26 weeks ended July 29, 2017 and July 30, 2016, respectively. At July 29, 2017, there was approximately $17,224 of unrecognized compensation expense related to restricted stock units.

The Company issued 21 and 24 performance-based restricted stock units during the 26 weeks ended July 29, 2017 and July 30, 2016, respectively. The compensation cost that has been charged against operating income for performance-based restricted stock units was $1,569 and $957 for the 13 weeks ended July 29, 2017 and July 30, 2016, respectively. The compensation cost that has been charged against operating income for performance-based restricted stock units was $2,819 and $1,435 for the 26 weeks ended July 29, 2017 and July 30, 2016, respectively. At July 29, 2017, there was approximately $11,617 of unrecognized compensation expense related to performance-based restricted stock units.

 

Recent accounting pronouncements not yet adopted

Revenue Recognition from Contracts with Customers

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, issued as a new Topic, Accounting Standards Codification Topic 606 (ASU 2014-09). The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that the Company will recognize revenue when the transfer of promised goods or services to customers occurs in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 Revenue from Contracts with Customers (Topic 606), which delayed the effective date of ASU 2014-09 by one year. With the deferral, the revenue recognition standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods, with early adoption permitted. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (ASU 2016-08), which further clarifies how to implement revenue recognition guidance related to determining whether an entity is a principal or an agent in a revenue transaction. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (ASU 2016-10), which further clarifies the aspects of (a) identifying performance obligations and (b) the licensing implementation guidance. The effective date and transition requirements for ASU 2016-08 and ASU 2016-10 are the same as the effective date and transition requirements of ASU 2014-09. These standards allow for either full retrospective or modified retrospective adoption.

The Company is currently evaluating the overall impact that ASU 2014-09 and its related amendments will have on the consolidated financial statements. The Company will adopt the new guidance in fiscal 2018, and anticipates using the modified retrospective method. The Company’s project team is in the process of finalizing the revised accounting policies based on the assessment of the effect of the standard. ASU 2014-09 will impact the recognition timing or classification of revenues and expenses for the sales refund reserve (by grossing up the balance sheet to record a refund obligation and right of return asset instead of recognizing revenue net of returns), gift card breakage (by including breakage within net sales instead of selling, general and administrative expenses under the proportional model), and loyalty program accounting (by using the deferred revenue method instead of the incremental cost method), however, the Company does not expect a significant impact to pretax income upon adoption. In addition, the Company continues to evaluate changes to business processes and controls to support recognition and disclosure under the new standard.

Leases

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This standard will change the way all leases of one year or more are treated. Under this guidance, lessees will be required to capitalize virtually all leases on the balance sheet as a right-of-use asset and recognize an associated financing lease liability or capital lease liability. The right-of-use asset represents the lessee’s right to use, or control the use of, a specified asset for the specified lease term. The lease liability represents the lessee’s obligation to make lease payments arising from the lease, measured on a discounted basis. Based on certain characteristics, leases are classified as financing leases or operating leases. Financing lease liabilities, those that contain provisions similar to capitalized leases, are amortized like capital leases under current GAAP as amortization expense and interest expense in the statement of operations. Operating lease liabilities are amortized on a straight-line basis over the life of the lease as lease expense in the statement of operations. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and have the option to use certain relief. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018, including interim reporting periods. Early adoption is permitted.

The Company is evaluating whether to early adopt the new standard in fiscal 2018. The Company’s ability to early adopt depends on system readiness, including software procured from third-party providers, and completing an analysis of information necessary to restate prior period consolidated financial statements. The Company formed a project team to review the current accounting policies and practices and assess the effect of the standard on the consolidated financial statements. The team has completed a preliminary assessment of the potential impact of adopting ASU 2016-02 on the consolidated financial statements. The adoption of ASU 2016-02 will have a material impact on the Company’s consolidated financial position, however the Company does not believe adoption of this standard will have a material impact on the Company’s consolidated results of operations or cash flows.

Liabilities – Extinguishments of Liabilities

In March 2016, the FASB issued ASU 2016-04, Liabilities – Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored – Value Products. This update entitles a company to derecognize amounts related to expected breakage to the extent that it is probable a significant reversal of the recognized breakage amount will not subsequently occur. ASU 2016-04 should be applied either using a modified retrospective transition method or retrospectively. ASU 2016-04 is effective for annual and interim periods beginning after December 15, 2017, and early adoption is permitted. The adoption of ASU 2016-04 is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

 

Statement of Cash Flows

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). ASU 2016-15 provides classification guidance on certain cash receipts and cash payments, including, but not limited to, debt prepayment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of bank-owned life insurance policies and distributions received from equity method investees. The adoption of ASU 2016-15 requires a retrospective transition method applied to each period presented. ASU 2016-15 is effective for annual periods and interim periods beginning after December 15, 2017, and early adoption is permitted. The adoption of ASU 2016-15 is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the Emerging Issues Task Force), which amends ASU Topic 230. ASU 2016-18 requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer be required to present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. Entities will also have to disclose the nature of their restricted cash and restricted cash equivalent balances. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 and interim periods within those years, and early adoption is permitted. Entities are required to apply the guidance retrospectively. The adoption of ASU 2016-18 is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

Compensation – Stock Compensation: Scope of Modification Accounting

In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting, which provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. ASU 2017-09 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, and early adoption is permitted. The adoption of ASU 2017-09 is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

Recently adopted accounting pronouncements

Compensation – Stock Compensation

In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This guidance changed how companies account for certain aspects of share-based payments to employees. Companies have to recognize all income tax effects of awards in the income statement when the awards vest or are settled, and additional paid-in capital pools were eliminated. The guidance on employer’s accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation and for forfeitures changed, and two practical expedients for non-public entities were added. ASU 2016-09 was effective for annual and interim reporting periods beginning after December 15, 2016.

The Company adopted the new guidance prospectively in the first quarter of fiscal 2017. The adoption resulted in a decrease in the provision for income taxes of $1,406 and $9,139 for the 13 weeks and 26 weeks ended July 29, 2017, respectively, due to the recognition of excess tax benefits for options exercised and the vesting of equity awards. The extent of excess tax benefits or deficiencies is subject to variation in the Company’s stock price and timing/extent of restricted stock units vesting and employee stock option exercises. Additionally, the consolidated statements of cash flows now present such tax benefits or deficiencies as an operating activity on a prospective basis. Based on the adoption methodology applied, the statement of cash flows classification of prior periods has not been adjusted. As allowed under the new guidance, the Company did not change its accounting principles relative to elements of this standard and continued its existing practice of estimating the number of awards that will be forfeited.

Commitments and contingencies
Commitments and contingencies
3. Commitments and contingencies

Leases – The Company leases retail stores, distribution and office facilities and certain equipment. Original non-cancelable lease terms range from three to ten years, and store leases generally contain renewal options for additional years. Total rent expense under operating leases was $57,812 and $49,685 for the 13 weeks ended July 29, 2017 and July 30, 2016, respectively. Total rent expense under operating leases was $114,595 and $98,844 for the 26 weeks ended July 29, 2017 and July 30, 2016, respectively.

General litigation – The Company is involved in various legal proceedings that are incidental to the conduct of the business. 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.

Notes payable
Notes payable
4. Notes payable

In 2011, the Company entered into an Amended and Restated Loan and Security Agreement with Wells Fargo Bank, National Association, as Administrative Agent, Collateral Agent and a Lender thereunder, Wells Fargo Capital Finance LLC as a Lender, J.P. Morgan Securities LLC as a Lender, JP Morgan Chase Bank, N.A. as a Lender and PNC Bank, National Association, as a Lender, which has been amended multiple times since 2011 (as amended, the Loan Agreement). The Loan Agreement currently matures in December 2018, provides maximum revolving loans equal to the lesser of $200,000 or a percentage of eligible owned inventory, contains a $10,000 subfacility for letters of credit and allows the Company to increase the revolving facility by an additional $50,000, subject to consent by each lender and other conditions. The Loan Agreement contains a requirement to maintain a minimum amount of excess borrowing availability at all times. Substantially all of the Company’s assets are pledged as collateral for outstanding borrowings under the facility. Outstanding borrowings will bear interest at the prime rate or London Interbank Offered Rate plus 1.50%, and the unused line fee is 0.20%.

As of July 29, 2017, January 28, 2017 and July 30, 2016, the Company had no borrowings outstanding under the credit facility and the Company was in compliance with all terms and covenants of the Loan Agreement.

Fair value measurements
Fair value measurements
5. 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 July 29, 2017, January 28, 2017 and July 30, 2016, the Company held financial liabilities of $14,303, $10,474 and $10,206, respectively, related to its non-qualified deferred compensation plan. The liabilities have been categorized as Level 2 as they are based on third-party reported values which are based primarily on quoted market prices of underlying assets of the funds within the plan.

Investments
Investments
6. Investments

The Company’s short-term investments as of July 29, 2017, January 28, 2017 and July 30, 2016 consist of $180,000, $30,000 and $110,000, respectively, in certificates of deposit. These short-term investments are carried at cost, which approximates fair value and are recorded in the Consolidated Balance Sheets in Short-term investments. The contractual maturity of the Company’s investments was less than twelve months at July 29, 2017.

Net income per common share
Net income per common share
7. Net income per common share

The following is a reconciliation of net income and the number of shares of common stock used in the computation of net income per basic and diluted share:

 

     13 Weeks Ended      26 Weeks Ended  

(In thousands, except per share data)

   July 29,
2017
     July 30,
2016
     July 29,
2017
     July 30,
2016
 

Numerator for diluted net income per share – net income

   $ 114,193      $ 90,004      $ 242,416      $ 181,980  

Denominator for basic net income per share – weighted-average common shares

     61,935        62,475        62,018        62,753  

Dilutive effect of stock options and non-vested stock

     444        338        465        314  
  

 

 

    

 

 

    

 

 

    

 

 

 

Denominator for diluted net income per share

     62,379        62,813        62,483        63,067  

Net income per common share:

           

Basic

   $ 1.84      $ 1.44      $ 3.91      $ 2.90  

Diluted

   $ 1.83      $ 1.43      $ 3.88      $ 2.89  

The denominator for diluted net income per common share for the 13 weeks ended July 29, 2017 and July 30, 2016 excludes 112 and 117 employee stock options, respectively, due to their anti-dilutive effects. The denominator for diluted net income per common share for the 26 weeks ended July 29, 2017 and July 30, 2016 excludes 151 and 388 employee stock options, 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
8. Share repurchase program

On March 10, 2016, the Company announced that the Board of Directors authorized a new share repurchase program (the 2016 Share Repurchase Program) pursuant to which the Company may repurchase up to $425,000 of the Company’s common stock. The 2016 Share Repurchase Program authorization revoked the previously authorized, but unused amounts of $172,386 from the earlier share repurchase program. The 2016 Share Repurchase Program did not have an expiration date, but provided for suspension or discontinuation at any time.

As part of the 2016 Share Repurchase Program, the Company entered into an Accelerated Share Repurchase (ASR) agreement with Goldman, Sachs & Co. to repurchase $200,000 of the Company’s common stock. Under the ASR agreement, the Company paid $200,000 to Goldman, Sachs & Co. and received an initial delivery of 852 shares in the first quarter of 2016, which were retired and represented 80% of the total shares the Company expected to receive based on the market price at the time of the initial delivery. In May 2016, the ASR settled and an additional 153 shares were delivered to the Company and retired. The final number of shares delivered upon settlement was determined with reference to the average price of the Company’s common stock over the term of the agreement. The transaction was accounted for as an equity transaction. The par value of shares received was recorded as a reduction to common stock with the remainder recorded as a reduction to additional paid-in capital and retained earnings. Upon receipt of the shares, there was an immediate reduction in the weighted average common shares calculation for basic and diluted earnings per share.

On March 9, 2017, the Company announced that the Board of Directors authorized a new share repurchase program (the 2017 Share Repurchase Program) pursuant to which the Company may repurchase up to $425,000 of the Company’s common stock. The 2017 Share Repurchase Program authorization revokes the previously authorized but unused amount of $79,863 from the 2016 Share Repurchase Program. The 2017 Share Repurchase Program does not have an expiration date and may be suspended or discontinued at any time.

During the 26 weeks ended July 29, 2017, the Company purchased 647 shares of common stock for $178,085. During the 26 weeks ended July 30, 2016, excluding the shares repurchased under the ASR, the Company purchased 265 shares of common stock for $52,450.

Subsequent event
Subsequent event
9. Subsequent event

On August 23, 2017, the Company entered into a Second Amended and Restated Loan Agreement (the Loan Amendment) 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 Amendment amended and restated the Loan Agreement. The Loan Amendment extends the maturity of the facility to August 23, 2022, provides maximum revolving loans equal to the lesser of $400,000 or a percentage of eligible owned inventory (which borrowing base may, at the election of the Company and satisfaction of certain conditions, include a percentage of eligible owned accounts and qualified cash), contains a $20,000 subfacility for letters of credit and allows the Company to increase the revolving facility by an additional $50,000, subject to the consent by each lender and other conditions. The Loan Amendment 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 Amendment falls below a specified threshold. Substantially all of the Company’s assets are pledged as collateral for outstanding borrowings under the Loan Amendment. Outstanding borrowings will bear interest at either a base rate or the London Interbank Offered Rate plus 1.25%, and the unused line fee is 0.20% per annum.

Summary of significant accounting policies (Policies)

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 Company’s second quarter in fiscal 2017 and 2016 ended on July 29, 2017 and July 30, 2016, respectively.

Share-based compensation

The Company measures share-based compensation cost on the grant date, based on the fair value of the award, and recognizes the expense on a straight-line method over the requisite service period for awards expected to vest. The Company estimated the grant date fair value of stock options using a Black-Scholes valuation model using the following weighted-average assumptions for the periods indicated:

 

     26 Weeks Ended  
     July 29,
2017
    July 30,
2016
 

Volatility rate

     31.0     35.0

Average risk-free interest rate

     1.6     1.2

Average expected life (in years)

     3.5       3.5  

Dividend yield

     None       None  

The Company granted 103 and 107 stock options during the 26 weeks ended July 29, 2017 and July 30, 2016, respectively. The compensation cost that has been charged against operating income for stock option grants was $2,235 and $1,999 for the 13 weeks ended July 29, 2017 and July 30, 2016, respectively. The compensation cost that has been charged against operating income for stock option grants was $4,377 and $3,982 for the 26 weeks ended July 29, 2017 and July 30, 2016, respectively. The weighted-average grant date fair value of these options was $70.12 and $52.72 for the 26 weeks ended July 29, 2017 and July 30, 2016, respectively. At July 29, 2017, there was approximately $22,633 of unrecognized compensation expense related to unvested stock options.

The Company issued 42 and 50 restricted stock units during 26 weeks ended July 29, 2017 and July 30, 2016, respectively. The compensation cost that has been charged against operating income for restricted stock units was $2,354 and $1,884 for the 13 weeks ended July 29, 2017 and July 30, 2016, respectively. The compensation cost that has been charged against operating income for restricted stock units was $4,453 and $3,445 for the 26 weeks ended July 29, 2017 and July 30, 2016, respectively. At July 29, 2017, there was approximately $17,224 of unrecognized compensation expense related to restricted stock units.

The Company issued 21 and 24 performance-based restricted stock units during the 26 weeks ended July 29, 2017 and July 30, 2016, respectively. The compensation cost that has been charged against operating income for performance-based restricted stock units was $1,569 and $957 for the 13 weeks ended July 29, 2017 and July 30, 2016, respectively. The compensation cost that has been charged against operating income for performance-based restricted stock units was $2,819 and $1,435 for the 26 weeks ended July 29, 2017 and July 30, 2016, respectively. At July 29, 2017, there was approximately $11,617 of unrecognized compensation expense related to performance-based restricted stock units.

Recent accounting pronouncements not yet adopted

Revenue Recognition from Contracts with Customers

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, issued as a new Topic, Accounting Standards Codification Topic 606 (ASU 2014-09). The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that the Company will recognize revenue when the transfer of promised goods or services to customers occurs in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 Revenue from Contracts with Customers (Topic 606), which delayed the effective date of ASU 2014-09 by one year. With the deferral, the revenue recognition standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods, with early adoption permitted. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (ASU 2016-08), which further clarifies how to implement revenue recognition guidance related to determining whether an entity is a principal or an agent in a revenue transaction. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (ASU 2016-10), which further clarifies the aspects of (a) identifying performance obligations and (b) the licensing implementation guidance. The effective date and transition requirements for ASU 2016-08 and ASU 2016-10 are the same as the effective date and transition requirements of ASU 2014-09. These standards allow for either full retrospective or modified retrospective adoption.

The Company is currently evaluating the overall impact that ASU 2014-09 and its related amendments will have on the consolidated financial statements. The Company will adopt the new guidance in fiscal 2018, and anticipates using the modified retrospective method. The Company’s project team is in the process of finalizing the revised accounting policies based on the assessment of the effect of the standard. ASU 2014-09 will impact the recognition timing or classification of revenues and expenses for the sales refund reserve (by grossing up the balance sheet to record a refund obligation and right of return asset instead of recognizing revenue net of returns), gift card breakage (by including breakage within net sales instead of selling, general and administrative expenses under the proportional model), and loyalty program accounting (by using the deferred revenue method instead of the incremental cost method), however, the Company does not expect a significant impact to pretax income upon adoption. In addition, the Company continues to evaluate changes to business processes and controls to support recognition and disclosure under the new standard.

Leases

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This standard will change the way all leases of one year or more are treated. Under this guidance, lessees will be required to capitalize virtually all leases on the balance sheet as a right-of-use asset and recognize an associated financing lease liability or capital lease liability. The right-of-use asset represents the lessee’s right to use, or control the use of, a specified asset for the specified lease term. The lease liability represents the lessee’s obligation to make lease payments arising from the lease, measured on a discounted basis. Based on certain characteristics, leases are classified as financing leases or operating leases. Financing lease liabilities, those that contain provisions similar to capitalized leases, are amortized like capital leases under current GAAP as amortization expense and interest expense in the statement of operations. Operating lease liabilities are amortized on a straight-line basis over the life of the lease as lease expense in the statement of operations. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and have the option to use certain relief. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018, including interim reporting periods. Early adoption is permitted.

The Company is evaluating whether to early adopt the new standard in fiscal 2018. The Company’s ability to early adopt depends on system readiness, including software procured from third-party providers, and completing an analysis of information necessary to restate prior period consolidated financial statements. The Company formed a project team to review the current accounting policies and practices and assess the effect of the standard on the consolidated financial statements. The team has completed a preliminary assessment of the potential impact of adopting ASU 2016-02 on the consolidated financial statements. The adoption of ASU 2016-02 will have a material impact on the Company’s consolidated financial position, however the Company does not believe adoption of this standard will have a material impact on the Company’s consolidated results of operations or cash flows.

Liabilities – Extinguishments of Liabilities

In March 2016, the FASB issued ASU 2016-04, Liabilities – Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored – Value Products. This update entitles a company to derecognize amounts related to expected breakage to the extent that it is probable a significant reversal of the recognized breakage amount will not subsequently occur. ASU 2016-04 should be applied either using a modified retrospective transition method or retrospectively. ASU 2016-04 is effective for annual and interim periods beginning after December 15, 2017, and early adoption is permitted. The adoption of ASU 2016-04 is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

 

Statement of Cash Flows

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). ASU 2016-15 provides classification guidance on certain cash receipts and cash payments, including, but not limited to, debt prepayment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of bank-owned life insurance policies and distributions received from equity method investees. The adoption of ASU 2016-15 requires a retrospective transition method applied to each period presented. ASU 2016-15 is effective for annual periods and interim periods beginning after December 15, 2017, and early adoption is permitted. The adoption of ASU 2016-15 is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the Emerging Issues Task Force), which amends ASU Topic 230. ASU 2016-18 requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer be required to present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. Entities will also have to disclose the nature of their restricted cash and restricted cash equivalent balances. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 and interim periods within those years, and early adoption is permitted. Entities are required to apply the guidance retrospectively. The adoption of ASU 2016-18 is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

Compensation – Stock Compensation: Scope of Modification Accounting

In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting, which provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. ASU 2017-09 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, and early adoption is permitted. The adoption of ASU 2017-09 is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

Recently adopted accounting pronouncements

Compensation – Stock Compensation

In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This guidance changed how companies account for certain aspects of share-based payments to employees. Companies have to recognize all income tax effects of awards in the income statement when the awards vest or are settled, and additional paid-in capital pools were eliminated. The guidance on employer’s accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation and for forfeitures changed, and two practical expedients for non-public entities were added. ASU 2016-09 was effective for annual and interim reporting periods beginning after December 15, 2016.

The Company adopted the new guidance prospectively in the first quarter of fiscal 2017. The adoption resulted in a decrease in the provision for income taxes of $1,406 and $9,139 for the 13 weeks and 26 weeks ended July 29, 2017, respectively, due to the recognition of excess tax benefits for options exercised and the vesting of equity awards. The extent of excess tax benefits or deficiencies is subject to variation in the Company’s stock price and timing/extent of restricted stock units vesting and employee stock option exercises. Additionally, the consolidated statements of cash flows now present such tax benefits or deficiencies as an operating activity on a prospective basis. Based on the adoption methodology applied, the statement of cash flows classification of prior periods has not been adjusted. As allowed under the new guidance, the Company did not change its accounting principles relative to elements of this standard and continued its existing practice of estimating the number of awards that will be forfeited.

Business and basis of presentation (Tables)
Details of Company Operated Stores

As of July 29, 2017, the Company operated 1,010 stores in 48 states and the District of Columbia, as shown in the table below.

 

Location

   Number of
stores
      

Location

   Number of
stores
 

Alabama

     17       

Montana

     5  

Alaska

     3       

Nebraska

     5  

Arizona

     25       

Nevada

     14  

Arkansas

     7       

New Hampshire

     7  

California

     128       

New Jersey

     26  

Colorado

     21       

New Mexico

     6  

Connecticut

     13       

New York

     36  

Delaware

     3       

North Carolina

     28  

District of Columbia

     1       

North Dakota

     3  

Florida

     68       

Ohio

     39  

Georgia

     32       

Oklahoma

     16  

Idaho

     7       

Oregon

     11  

Illinois

     49       

Pennsylvania

     37  

Indiana

     19       

Rhode Island

     3  

Iowa

     8       

South Carolina

     15  

Kansas

     9       

South Dakota

     2  

Kentucky

     10       

Tennessee

     19  

Louisiana

     16       

Texas

     97  

Maine

     3       

Utah

     12  

Maryland

     18       

Virginia

     25  

Massachusetts

     15       

Washington

     24  

Michigan

     43       

West Virginia

     6  

Minnesota

     13       

Wisconsin

     18  

Mississippi

     9       

Wyoming

     2  

Missouri

     17       

Total

     1,010  

 

Summary of significant accounting policies (Tables)
Black-Scholes Valuation Model Weighted-Average Assumptions

The Company estimated the grant date fair value of stock options using a Black-Scholes valuation model using the following weighted-average assumptions for the periods indicated:

 

     26 Weeks Ended  
     July 29,
2017
    July 30,
2016
 

Volatility rate

     31.0     35.0

Average risk-free interest rate

     1.6     1.2

Average expected life (in years)

     3.5       3.5  

Dividend yield

     None       None  

 

Net income per common share (Tables)
Net Income Per Basic and Diluted Share

The following is a reconciliation of net income and the number of shares of common stock used in the computation of net income per basic and diluted share:

 

     13 Weeks Ended      26 Weeks Ended  

(In thousands, except per share data)

   July 29,
2017
     July 30,
2016
     July 29,
2017
     July 30,
2016
 

Numerator for diluted net income per share – net income

   $ 114,193      $ 90,004      $ 242,416      $ 181,980  

Denominator for basic net income per share – weighted-average common shares

     61,935        62,475        62,018        62,753  

Dilutive effect of stock options and non-vested stock

     444        338        465        314  
  

 

 

    

 

 

    

 

 

    

 

 

 

Denominator for diluted net income per share

     62,379        62,813        62,483        63,067  

Net income per common share:

           

Basic

   $ 1.84      $ 1.44      $ 3.91      $ 2.90  

Diluted

   $ 1.83      $ 1.43      $ 3.88      $ 2.89  

 

Business and Basis of Presentation - Additional Information (Detail)
Jul. 29, 2017
State
Store
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
Number of stores
1,010 
Number of states in which entity operates
48 
Business and Basis of Presentation - Details of Company Operated Stores (Detail)
Jul. 29, 2017
Store
Entity Location [Line Items]
 
Number of stores
1,010 
Alabama [Member]
 
Entity Location [Line Items]
 
Number of stores
17 
Alaska [Member]
 
Entity Location [Line Items]
 
Number of stores
Arizona [Member]
 
Entity Location [Line Items]
 
Number of stores
25 
Arkansas [Member]
 
Entity Location [Line Items]
 
Number of stores
California [Member]
 
Entity Location [Line Items]
 
Number of stores
128 
Colorado [Member]
 
Entity Location [Line Items]
 
Number of stores
21 
Connecticut [Member]
 
Entity Location [Line Items]
 
Number of stores
13 
Delaware [Member]
 
Entity Location [Line Items]
 
Number of stores
District of Columbia [Member]
 
Entity Location [Line Items]
 
Number of stores
Florida [Member]
 
Entity Location [Line Items]
 
Number of stores
68 
Georgia [Member]
 
Entity Location [Line Items]
 
Number of stores
32 
Idaho [Member]
 
Entity Location [Line Items]
 
Number of stores
Illinois [Member]
 
Entity Location [Line Items]
 
Number of stores
49 
Indiana [Member]
 
Entity Location [Line Items]
 
Number of stores
19 
Iowa [Member]
 
Entity Location [Line Items]
 
Number of stores
Kansas [Member]
 
Entity Location [Line Items]
 
Number of stores
Kentucky [Member]
 
Entity Location [Line Items]
 
Number of stores
10 
Louisiana [Member]
 
Entity Location [Line Items]
 
Number of stores
16 
Maine [Member]
 
Entity Location [Line Items]
 
Number of stores
Maryland [Member]
 
Entity Location [Line Items]
 
Number of stores
18 
Massachusetts [Member]
 
Entity Location [Line Items]
 
Number of stores
15 
Michigan [Member]
 
Entity Location [Line Items]
 
Number of stores
43 
Minnesota [Member]
 
Entity Location [Line Items]
 
Number of stores
13 
Mississippi [Member]
 
Entity Location [Line Items]
 
Number of stores
Missouri [Member]
 
Entity Location [Line Items]
 
Number of stores
17 
Montana [Member]
 
Entity Location [Line Items]
 
Number of stores
Nebraska [Member]
 
Entity Location [Line Items]
 
Number of stores
Nevada [Member]
 
Entity Location [Line Items]
 
Number of stores
14 
New Hampshire [Member]
 
Entity Location [Line Items]
 
Number of stores
New Jersey [Member]
 
Entity Location [Line Items]
 
Number of stores
26 
New Mexico [Member]
 
Entity Location [Line Items]
 
Number of stores
New York [Member]
 
Entity Location [Line Items]
 
Number of stores
36 
North Carolina [Member]
 
Entity Location [Line Items]
 
Number of stores
28 
North Dakota [Member]
 
Entity Location [Line Items]
 
Number of stores
Ohio [Member]
 
Entity Location [Line Items]
 
Number of stores
39 
Oklahoma [Member]
 
Entity Location [Line Items]
 
Number of stores
16 
Oregon [Member]
 
Entity Location [Line Items]
 
Number of stores
11 
Pennsylvania [Member]
 
Entity Location [Line Items]
 
Number of stores
37 
Rhode Island [Member]
 
Entity Location [Line Items]
 
Number of stores
South Carolina [Member]
 
Entity Location [Line Items]
 
Number of stores
15 
South Dakota [Member]
 
Entity Location [Line Items]
 
Number of stores
Tennessee [Member]
 
Entity Location [Line Items]
 
Number of stores
19 
Texas [Member]
 
Entity Location [Line Items]
 
Number of stores
97 
Utah [Member]
 
Entity Location [Line Items]
 
Number of stores
12 
Virginia [Member]
 
Entity Location [Line Items]
 
Number of stores
25 
Washington [Member]
 
Entity Location [Line Items]
 
Number of stores
24 
West Virginia [Member]
 
Entity Location [Line Items]
 
Number of stores
Wisconsin [Member]
 
Entity Location [Line Items]
 
Number of stores
18 
Wyoming [Member]
 
Entity Location [Line Items]
 
Number of stores
Summary of Significant Accounting Policies - Black-Scholes Valuation Model Weighted-Average Assumptions (Detail) (Employee Stock Option [Member])
6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Employee Stock Option [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Volatility rate
31.00% 
35.00% 
Average risk-free interest rate
1.60% 
1.20% 
Average expected life (in years)
3 years 6 months 0 days 
3 years 6 months 0 days 
Dividend yield
0.00% 
0.00% 
Summary of Significant Accounting Policies - Additional Information - Share-based Compensation (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Jul. 29, 2017
Jul. 30, 2016
Employee Stock Option [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Number of shares granted
 
 
103,000 
107,000 
Compensation expenses
$ 2,235 
$ 1,999 
$ 4,377 
$ 3,982 
Weighted-average fair value of stock option
 
 
$ 70.12 
$ 52.72 
Unrecognized compensation cost
22,633 
 
22,633 
 
Restricted Stock Units [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Unrecognized compensation cost
17,224 
 
17,224 
 
Restricted stock units issued
 
 
42,000 
50,000 
Compensation expense
2,354 
1,884 
4,453 
3,445 
Performance Based Restricted Stock Units [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Unrecognized compensation cost
11,617 
 
11,617 
 
Restricted stock units issued
 
 
21,000 
24,000 
Compensation expense
$ 1,569 
$ 957 
$ 2,819 
$ 1,435 
Summary of Significant Accounting Policies - Additional Information - Accounting Changes (Detail) (Accounting Standards Update 2016-09 [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 29, 2017
Accounting Standards Update 2016-09 [Member]
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
New accounting pronouncement, Effect of adoption, Quantification
$ 1,406 
$ 9,139 
Commitments and Contingencies - Additional Information - Leases (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Jul. 29, 2017
Jul. 30, 2016
Long-term Purchase Commitment [Line Items]
 
 
 
 
Total rent expense under operating leases
$ 57,812 
$ 49,685 
$ 114,595 
$ 98,844 
Minimum [Member]
 
 
 
 
Long-term Purchase Commitment [Line Items]
 
 
 
 
Non-cancelable operating lease terms
 
 
3 years 0 months 0 days 
 
Maximum [Member]
 
 
 
 
Long-term Purchase Commitment [Line Items]
 
 
 
 
Non-cancelable operating lease terms
 
 
10 years 0 months 0 days 
 
Notes Payable - Additional Information (Detail) (USD $)
6 Months Ended
Jul. 29, 2017
Jan. 28, 2017
Jul. 30, 2016
Jul. 29, 2017
Amended and Restated Loan and Security Agreement [Member]
Jul. 29, 2017
Amended and Restated Loan and Security Agreement [Member]
London Interbank Offered Rate (LIBOR) [Member]
Jul. 29, 2017
Amended and Restated Loan and Security Agreement [Member]
Revolving Credit Facility [Member]
Jul. 29, 2017
Amended and Restated Loan and Security Agreement [Member]
Subfacility for Standby Letters of Credit [Member]
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
Loan Agreement maturity date
 
 
 
Dec. 31, 2018 
 
 
 
Credit facility, maximum borrowing capacity
 
 
 
 
 
$ 200,000,000 
$ 10,000,000 
Additional credit available under the revolving facility with consent by each lender and other conditions
 
 
 
50,000,000 
 
 
 
Interest rate on outstanding borrowing under facility
 
 
 
London Interbank Offered Rate plus 1.50% 
 
 
 
Outstanding borrowings interest spread over the London Interbank Offered Rate
 
 
 
 
1.50% 
 
 
Percentage of unused Line of Credit Facility Fee
 
 
 
0.20% 
 
 
 
Outstanding debt under credit facility
$ 0 
$ 0 
$ 0 
 
 
 
 
Fair Value Measurements - Additional Information (Detail) (Fair Value, Inputs, Level 2 [Member], USD $)
In Thousands, unless otherwise specified
Jul. 29, 2017
Jan. 28, 2017
Jul. 30, 2016
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Deferred compensation plan liability
$ 14,303 
$ 10,474 
$ 10,206 
Investments - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
Jul. 29, 2017
Jan. 28, 2017
Jul. 30, 2016
Investments Schedule [Abstract]
 
 
 
Certificates of deposit
$ 180,000 
$ 30,000 
$ 110,000 
Net Income Per Common Share - Net Income Per Basic and Diluted Share (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Jul. 29, 2017
Jul. 30, 2016
Earnings Per Share [Abstract]
 
 
 
 
Numerator for diluted net income per share - net income
$ 114,193 
$ 90,004 
$ 242,416 
$ 181,980 
Denominator for basic net income per share - weighted-average common shares
61,935 
62,475 
62,018 
62,753 
Dilutive effect of stock options and non-vested stock
444 
338 
465 
314 
Denominator for diluted net income per share
62,379 
62,813 
62,483 
63,067 
Net income per common share:
 
 
 
 
Basic
$ 1.84 
$ 1.44 
$ 3.91 
$ 2.90 
Diluted
$ 1.83 
$ 1.43 
$ 3.88 
$ 2.89 
Net Income Per Common Share - Additional Information (Detail)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Jul. 29, 2017
Jul. 30, 2016
Earnings Per Share [Abstract]
 
 
 
 
Employee stock options excluded from the computation of net income per common share
112 
117 
151 
388 
Share Repurchase Program - Additional Information (Detail) (USD $)
6 Months Ended 6 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Mar. 10, 2016
2014 Share Repurchase Program [Member]
Jul. 30, 2016
2016 Share Repurchase Program [Member]
Mar. 9, 2017
2016 Share Repurchase Program [Member]
Mar. 10, 2016
2016 Share Repurchase Program [Member]
May 31, 2016
Accelerated Share Repurchase [Member]
Mar. 10, 2016
Accelerated Share Repurchase [Member]
Jul. 29, 2017
2017 Share Repurchase Program [Member]
Mar. 9, 2017
2017 Share Repurchase Program [Member]
Maximum [Member]
Stock Repurchase Program [Line Items]
 
 
 
 
 
 
 
 
 
 
Repurchase of common stock authorized amount
 
 
 
 
 
$ 425,000,000 
 
$ 200,000,000 
 
$ 425,000,000 
Shares authorized but revoked unused amounts
 
 
172,386,000 
 
79,863,000 
 
 
 
 
 
Share repurchase, initial payment
 
 
 
 
 
 
 
200,000,000 
 
 
Share Repurchase, Shares Delivered
 
 
 
 
 
 
153,000 
852,000 
 
 
Stock repurchase, percentage of initial shares received from expected shares
 
 
 
 
 
 
 
80.00% 
 
 
Repurchase of common stock, shares
 
 
 
265,000 
 
 
 
 
647,000 
 
Repurchase of common stock
$ 178,085,000 
$ 252,450,000 
 
$ 52,450,000 
 
 
 
 
$ 178,085,000 
 
Subsequent Event - Additional Information (Detail) (Second Amended and Restated Loan Agreement [Member], USD $)
0 Months Ended
Aug. 23, 2017
Subsequent Event [Line Items]
 
Interest rate on outstanding borrowing under facility
London Interbank Offered Rate plus 1.25% 
Subsequent Event [Member]
 
Subsequent Event [Line Items]
 
Loan Agreement maturity date
Aug. 23, 2022 
Additional credit available under the revolving facility with consent by each lender and other conditions
$ 50,000,000 
Percentage of unused Line of Credit Facility Fee
0.20% 
Subsequent Event [Member] |
London Interbank Offered Rate (LIBOR) [Member]
 
Subsequent Event [Line Items]
 
Outstanding borrowings interest spread over the London Interbank Offered Rate
1.25% 
Subsequent Event [Member] |
Minimum [Member]
 
Subsequent Event [Line Items]
 
Fixed charge coverage ratio
100.00% 
Subsequent Event [Member] |
Revolving Credit Facility [Member]
 
Subsequent Event [Line Items]
 
Credit facility, maximum borrowing capacity
400,000,000 
Subsequent Event [Member] |
Subfacility for Standby Letters of Credit [Member]
 
Subsequent Event [Line Items]
 
Credit facility, maximum borrowing capacity
$ 20,000,000