ULTA BEAUTY, INC., 10-Q filed on 6/4/2015
Quarterly Report
Document and Entity Information
3 Months Ended
May 2, 2015
May 28, 2015
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
May 02, 2015 
 
Document Fiscal Year Focus
2015 
 
Document Fiscal Period Focus
Q1 
 
Trading Symbol
ULTA 
 
Entity Registrant Name
Ulta Salon, Cosmetics & Fragrance, Inc. 
 
Entity Central Index Key
0001403568 
 
Current Fiscal Year End Date
--01-30 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
64,232,738 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
May 2, 2015
Jan. 31, 2015
May 3, 2014
Current assets:
 
 
 
Cash and cash equivalents
$ 386,007 
$ 389,149 
$ 456,709 
Short-term investments
150,209 
150,209 
 
Receivables, net
43,558 
52,440 
26,722 
Merchandise inventories, net
662,936 
581,229 
531,427 
Prepaid expenses and other current assets
61,725 
66,548 
53,391 
Deferred income taxes
20,766 
20,780 
22,241 
Total current assets
1,325,201 
1,260,355 
1,090,490 
Property and equipment, net
744,665 
717,159 
603,933 
Deferred compensation plan assets
8,085 
5,656 
4,802 
Total assets
2,077,951 
1,983,170 
1,699,225 
Current liabilities:
 
 
 
Accounts payable
209,509 
190,778 
184,148 
Accrued liabilities
139,284 
149,412 
90,343 
Accrued income taxes
34,871 
19,404 
27,928 
Total current liabilities
383,664 
359,594 
302,419 
Deferred rent
305,355 
294,127 
264,679 
Deferred income taxes
75,135 
74,498 
67,019 
Other long-term liabilities
10,812 
7,442 
5,352 
Total liabilities
774,966 
735,661 
639,469 
Commitments and contingencies (Note 3)
   
   
   
Stockholders' equity:
 
 
 
Common stock, $.01 par value, 400,000 shares authorized; 64,770, 64,762 and 64,899 shares issued; 64,185, 64,184 and 64,324 shares outstanding; at May 2, 2015 (unaudited), January 31, 2015 and May 3, 2014 (unaudited), respectively
647 
647 
649 
Treasury stock-common, at cost
(10,726)
(9,713)
(9,378)
Additional paid-in capital
594,479 
576,982 
556,154 
Retained earnings
718,585 
679,593 
512,331 
Total stockholders' equity
1,302,985 
1,247,509 
1,059,756 
Total liabilities and stockholders' equity
$ 2,077,951 
$ 1,983,170 
$ 1,699,225 
Consolidated Balance Sheets (Parenthetical) (USD $)
May 2, 2015
Jan. 31, 2015
May 3, 2014
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
64,770,000 
64,762,000 
64,899,000 
Common stock, shares outstanding
64,185,000 
64,184,000 
64,324,000 
Consolidated Statements of Income (Unaudited) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
May 2, 2015
May 3, 2014
Income Statement [Abstract]
 
 
Net sales
$ 868,122 
$ 713,770 
Cost of sales
564,938 
467,817 
Gross profit
303,184 
245,953 
Selling, general and administrative expenses
192,485 
162,443 
Pre-opening expenses
3,117 
2,629 
Operating income
107,582 
80,881 
Interest income, net
(311)
(200)
Income before income taxes
107,893 
81,081 
Income tax expense
40,947 
31,128 
Net income
$ 66,946 
$ 49,953 
Net income per common share:
 
 
Basic
$ 1.04 
$ 0.78 
Diluted
$ 1.04 
$ 0.77 
Weighted average common shares outstanding:
 
 
Basic
64,180 
64,273 
Diluted
64,555 
64,607 
Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
May 2, 2015
May 3, 2014
Operating activities
 
 
Net income
$ 66,946 
$ 49,953 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
37,967 
30,473 
Deferred income taxes
651 
306 
Non-cash stock compensation charges
3,342 
4,063 
Excess tax benefits from stock-based compensation
(4,003)
(901)
Loss on disposal of property and equipment
1,121 
874 
Change in operating assets and liabilities:
 
 
Receivables
8,882 
20,327 
Merchandise inventories
(81,707)
(73,494)
Prepaid expenses and other current assets
4,823 
2,602 
Income taxes
19,470 
13,480 
Accounts payable
18,731 
35,866 
Accrued liabilities
(20,100)
(13,275)
Deferred rent
11,228 
3,049 
Other assets and liabilities
941 
370 
Net cash provided by operating activities
68,292 
73,693 
Investing activities
 
 
Purchases of property and equipment
(56,622)
(39,106)
Net cash used in investing activities
(56,622)
(39,106)
Financing activities
 
 
Repurchase of common shares
(27,956)
 
Stock options exercised
10,154 
2,998 
Excess tax benefits from stock-based compensation
4,003 
901 
Purchase of treasury shares
(1,013)
(1,253)
Net cash (used in) provided by financing activities
(14,812)
2,646 
Net (decrease) increase in cash and cash equivalents
(3,142)
37,233 
Cash and cash equivalents at beginning of period
389,149 
419,476 
Cash and cash equivalents at end of period
386,007 
456,709 
Supplemental cash flow information
 
 
Cash paid for income taxes (net of refunds)
20,645 
17,160 
Non-cash investing activities:
 
 
Change in property and equipment included in accrued liabilities
$ 9,972 
$ 436 
Consolidated Statement of Stockholders' Equity (Unaudited) (USD $)
In Thousands
Total
Common Stock [Member]
Treasury - Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Balance at Jan. 31, 2015
$ 1,247,509 
$ 647 
$ (9,713)
$ 576,982 
$ 679,593 
Balance, Shares at Jan. 31, 2015
 
 
(578)
 
 
Balance, Shares at Jan. 31, 2015
 
64,762 
 
 
 
Stock options exercised and other awards
10,154 
 
10,152 
 
Stock options exercised and other awards, Shares
 
200 
 
 
 
Purchase of treasury shares
(1,013)
 
(1,013)
 
 
Purchase of treasury shares, Shares
 
 
(7)
 
 
Net income
66,946 
 
 
 
66,946 
Excess tax benefits from stock-based compensation
4,003 
 
 
4,003 
 
Stock compensation charge
3,342 
 
 
3,342 
 
Repurchase of common shares
(27,956)
(2)
 
 
(27,954)
Repurchase of common shares, Shares
 
(192)
 
 
 
Balance at May. 02, 2015
$ 1,302,985 
$ 647 
$ (10,726)
$ 594,479 
$ 718,585 
Balance, Shares at May. 02, 2015
 
 
(585)
 
 
Balance, Shares at May. 02, 2015
 
64,770 
 
 
 
Business and Basis of Presentation
Business and Basis of Presentation
1. Business and basis of presentation

Ulta Salon, Cosmetics & Fragrance, Inc. was incorporated in the state of Delaware on January 9, 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 May 2, 2015, the Company operated 797 stores in 48 states, as shown in the table below. As used in these notes and throughout this Quarterly Report on Form 10-Q, all references to “we,” “us,” “our,” “Ulta,” “Ulta Beauty” or “the Company” refer to Ulta Salon, Cosmetics & Fragrance, Inc. and its consolidated subsidiary, Ulta Inc.

 

State

   Number of
stores
    

State

   Number of
stores
 

Alabama

     12       Montana      5   

Alaska

     2       Nebraska      3   

Arizona

     24       Nevada      9   

Arkansas

     6       New Hampshire      6   

California

     93       New Jersey      20   

Colorado

     17       New Mexico      3   

Connecticut

     8       New York      29   

Delaware

     1       North Carolina      25   

Florida

     55       North Dakota      1   

Georgia

     26       Ohio      29   

Idaho

     4       Oklahoma      9   

Illinois

     45       Oregon      9   

Indiana

     15       Pennsylvania      29   

Iowa

     7       Rhode Island      2   

Kansas

     6       South Carolina      13   

Kentucky

     10       South Dakota      2   

Louisiana

     16       Tennessee      11   

Maine

     3       Texas      80   

Maryland

     12       Utah      11   

Massachusetts

     13       Virginia      21   

Michigan

     37       Washington      16   

Minnesota

     12       West Virginia      4   

Mississippi

     5       Wisconsin      14   

Missouri

     16       Wyoming      1   
        

 

 

 
Total   797   

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 subsidiary. 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 weeks ended May 2, 2015 are not necessarily indicative of the results to be expected for the fiscal year ending January 30, 2016, 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 31, 2015. 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 financial statements in the Company’s Annual Report on Form 10-K for the year ended January 31, 2015. Presented below and in the following notes is supplemental information that should be read in conjunction with “Notes to 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 first quarters in fiscal 2015 and 2014 ended on May 2, 2015 and May 3, 2014, 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:

 

     13 Weeks Ended  
     May 2, 2015     May 3, 2014  

Volatility rate

     38.0     41.1

Average risk-free interest rate

     1.1     1.4

Average expected life (in years)

     3.6        3.8   

Dividend yield

     None        None   

The Company granted 87 and 287 stock options during the 13 weeks ended May 2, 2015 and May 3, 2014, respectively. The compensation cost that has been charged against operating income for stock option grants was $2,031 and $2,133 for the 13 weeks ended May 2, 2015 and May 3, 2014, respectively. The weighted-average grant date fair value of these options was $44.84 and $32.04, respectively. At May 2, 2015, there was approximately $17,440 of unrecognized compensation expense related to unvested stock options.

The Company issued 63 and 46 restricted stock awards during the 13 weeks ended May 2, 2015 and May 3, 2014, respectively. The compensation cost that has been charged against operating income for restricted stock awards was $1,311 and $1,930 for the 13 weeks ended May 2, 2015 and May 3, 2014, respectively. At May 2, 2015, there was approximately $15,322 of unrecognized compensation expense related to restricted stock awards.

Recent accounting pronouncements

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, issued as a new Topic, Accounting Standards Codification Topic 606. 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 it transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. This standard is effective beginning in fiscal year 2017. In April 2015, the FASB voted for a proposed one-year deferral of the effective date of the new revenue recognition standard. If approved, the new standard will be effective beginning in fiscal year 2018 with early adoption as of the original effective date permitted. The standard allows for either full retrospective or modified retrospective adoption. The Company is currently evaluating the application method and the impact of this new standard on its consolidated financial position, results of operations and cash flows.

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 leases generally contain renewal options for additional years. A number of the Company’s store leases provide for contingent rental payments based upon sales. Contingent rent amounts were insignificant in the 13 weeks ended May 2, 2015 and May 3, 2014. Total rent expense under operating leases was $44,558 and $38,538 for 13 weeks ended May 2, 2015 and May 3, 2014, respectively.

General litigation – On March 2, 2012, a putative employment class action lawsuit was filed against us and certain unnamed defendants in state court in Los Angeles County, California. On April 12, 2012, the Company removed the case to the United States District Court for the Central District of California. On August 8, 2013, the plaintiff asked the court to certify the proposed class and the Company opposed the plaintiff’s request and is waiting for the court to issue a decision. The plaintiff and members of the proposed class are alleged to be (or to have been) non-exempt hourly employees. The suit alleges that Ulta violated various provisions of the California labor laws and failed to provide plaintiff and members of the proposed class with full meal periods, paid rest breaks, certain wages, overtime compensation and premium pay. The suit seeks to recover damages and penalties as a result of these alleged practices. The Company denies plaintiff’s allegations and is vigorously defending the matter.

The Company has not recorded any accruals for this matter because the Company’s potential liability for the matter is not probable and cannot be reasonably estimated based on currently available information. The Company cannot determine a reasonable estimate of the maximum possible loss or range of loss for this matter given that it is in the early stage of the litigation process and is subject to the inherent uncertainties of litigation (such as the strength of the Company’s legal defenses and the availability of insurance recovery). Although the maximum amount of liability that may ultimately result from this matter cannot be predicted with certainty, management expects that this matter, when ultimately resolved, will not have a material adverse effect on the Company’s consolidated financial position or liquidity. It is possible, however, that the ultimate resolution of this matter could have a material adverse effect on the Company’s results of operations in a particular quarter or year if such resolution results in a significant liability for the Company.

On December 4, 2013, a putative employment class action lawsuit was filed against us in the Superior Court of California, Santa Clara County and was removed to the U.S. Northern District Court of California on January 8, 2014. It seeks class action certification for claims involving payment of wages using an ATM card; allegedly failing to provide accurate and complete wage statements; allegedly failing to pay all minimum and overtime wages; and allegedly failing to pay meal and rest break premiums due to Ulta’s exit inspection practice. On August 29, 2014, the court stayed the exit inspection portion of the litigation, thus the case is proceeding with respect to the paycard-related claims. The issue in this class action is whether Ulta was required by law to obtain employee consent to use pay cards for purposes of supplemental and final pay, and whether the pay statements issued in conjunction with pay cards complied with California’s Labor Code provision. The suit seeks to recover damages and penalties as a result of these alleged practices. The Company denies plaintiff’s allegations and is vigorously defending the matter. The parties have agreed to private mediation, which is set for September 2, 2015.

The Company cannot determine a reasonable estimate of the maximum possible loss or range of loss for this matter given that it is in the early stage of the litigation process and is subject to the inherent uncertainties of litigation (such as the strength of the Company’s legal defenses and the availability of insurance recovery). Although the maximum amount of liability that may ultimately result from this matter cannot be predicted with certainty, management expects that this matter, when ultimately resolved, will not have a material adverse effect on the Company’s consolidated financial position or liquidity. It is possible, however, that the ultimate resolution of this matter could have a material adverse effect on the Company’s results of operations in a particular quarter or year if such resolution results in a significant liability for the Company.

The Company is also involved in various legal proceedings that are incidental to the conduct of its business. In the opinion of management, the amount of any liability with respect to these proceedings, either individually or in the aggregate, will not be material.

Notes Payable
Notes Payable
4. Notes payable

On October 19, 2011, the Company entered into an Amended and Restated Loan and Security Agreement (the Loan 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. The Loan Agreement amended and restated the Loan and Security Agreement, dated as of August 31, 2010, by and among the lenders. The Loan Agreement extended the maturity of the Company’s credit facility to October 2016, 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.

On September 5, 2012, the Company entered into Amendment No. 1 to Amended and Restated Loan and Security Agreement (the First Amendment) with the lender group. The First Amendment updated certain administrative terms and conditions and provides the Company greater flexibility to take certain corporate actions. There were no changes to the revolving loan amounts available, interest rates, covenants or maturity date under terms of the Loan Agreement.

On December 6, 2013, the Company entered into Amendment No. 2 to the Amended and Restated Loan and Security Agreement (the Second Amendment) with the lender group. The Second Amendment extended the maturity of the facility to December 2018. 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 LIBOR plus 1.50% and the unused line fee is 0.20%.

As of May 2, 2015, January 31, 2015 and May 3, 2014, the Company had no borrowings outstanding under the credit facility and the Company was in compliance with all terms and covenants of the 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 May 2, 2015, January 31, 2015 and May 3, 2014, the Company held financial liabilities of $8,269, $5,574 and $4,376, 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 net asset values which are based primarily on quoted market prices of underlying assets of the funds within the plan.

Net Income Per Common Share
Net Income Per Common Share
6. 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  

(In thousands, except per share data)

   May 2,
2015
     May 3,
2014
 

Numerator for diluted net income per share – net income

   $ 66,946       $ 49,953   

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

     64,180         64,273   

Dilutive effect of stock options and non-vested stock

     375         334   
  

 

 

    

 

 

 

Denominator for diluted net income per share

  64,555      64,607   

Net income per common share:

Basic

$ 1.04    $ 0.78   

Diluted

$ 1.04    $ 0.77   

The denominators for diluted net income per common share for the 13 weeks ended May 2, 2015 and May 3, 2014 exclude 200 and 665 employee stock options, respectively, due to their anti-dilutive effects.

Share Repurchase Program
Share Repurchase Program
7. Share repurchase program

On September 11, 2014, the Company announced that our Board of Directors authorized a new share repurchase program (the 2014 Share Repurchase Program) pursuant to which the Company may repurchase up to $300,000 of the Company’s common stock. The 2014 Share Repurchase Program authorization revoked the previously authorized but unused amounts of $112,664 from the share repurchase program adopted in 2013. The 2014 Share Repurchase Program does not have an expiration date and may be suspended or discontinued at any time.

 

On March 12, 2015, the Company announced that our Board of Directors authorized an increase of $100 million to the 2014 Share Repurchase Program effective March 17, 2015.

During the 13 weeks ended May 2, 2015, we purchased 192 shares of common stock for $27,956 at an average price of $145.26. There were no repurchases during the 13 weeks ended May 3, 2014.

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 first quarters in fiscal 2015 and 2014 ended on May 2, 2015 and May 3, 2014, 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:

 

     13 Weeks Ended  
     May 2, 2015     May 3, 2014  

Volatility rate

     38.0     41.1

Average risk-free interest rate

     1.1     1.4

Average expected life (in years)

     3.6        3.8   

Dividend yield

     None        None   

The Company granted 87 and 287 stock options during the 13 weeks ended May 2, 2015 and May 3, 2014, respectively. The compensation cost that has been charged against operating income for stock option grants was $2,031 and $2,133 for the 13 weeks ended May 2, 2015 and May 3, 2014, respectively. The weighted-average grant date fair value of these options was $44.84 and $32.04, respectively. At May 2, 2015, there was approximately $17,440 of unrecognized compensation expense related to unvested stock options.

The Company issued 63 and 46 restricted stock awards during the 13 weeks ended May 2, 2015 and May 3, 2014, respectively. The compensation cost that has been charged against operating income for restricted stock awards was $1,311 and $1,930 for the 13 weeks ended May 2, 2015 and May 3, 2014, respectively. At May 2, 2015, there was approximately $15,322 of unrecognized compensation expense related to restricted stock awards.

Recent accounting pronouncements

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, issued as a new Topic, Accounting Standards Codification Topic 606. 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 it transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. This standard is effective beginning in fiscal year 2017. In April 2015, the FASB voted for a proposed one-year deferral of the effective date of the new revenue recognition standard. If approved, the new standard will be effective beginning in fiscal year 2018 with early adoption as of the original effective date permitted. The standard allows for either full retrospective or modified retrospective adoption. The Company is currently evaluating the application method and the impact of this new standard on its consolidated financial position, results of operations and cash flows.

Business and Basis of Presentation (Tables)
Details of Company Operated Stores

As of May 2, 2015, the Company operated 797 stores in 48 states, as shown in the table below. As used in these notes and throughout this Quarterly Report on Form 10-Q, all references to “we,” “us,” “our,” “Ulta,” “Ulta Beauty” or “the Company” refer to Ulta Salon, Cosmetics & Fragrance, Inc. and its consolidated subsidiary, Ulta Inc.

 

State

   Number of
stores
    

State

   Number of
stores
 

Alabama

     12       Montana      5   

Alaska

     2       Nebraska      3   

Arizona

     24       Nevada      9   

Arkansas

     6       New Hampshire      6   

California

     93       New Jersey      20   

Colorado

     17       New Mexico      3   

Connecticut

     8       New York      29   

Delaware

     1       North Carolina      25   

Florida

     55       North Dakota      1   

Georgia

     26       Ohio      29   

Idaho

     4       Oklahoma      9   

Illinois

     45       Oregon      9   

Indiana

     15       Pennsylvania      29   

Iowa

     7       Rhode Island      2   

Kansas

     6       South Carolina      13   

Kentucky

     10       South Dakota      2   

Louisiana

     16       Tennessee      11   

Maine

     3       Texas      80   

Maryland

     12       Utah      11   

Massachusetts

     13       Virginia      21   

Michigan

     37       Washington      16   

Minnesota

     12       West Virginia      4   

Mississippi

     5       Wisconsin      14   

Missouri

     16       Wyoming      1   
        

 

 

 
Total   797   
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:

 

     13 Weeks Ended  
     May 2, 2015     May 3, 2014  

Volatility rate

     38.0     41.1

Average risk-free interest rate

     1.1     1.4

Average expected life (in years)

     3.6        3.8   

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  

(In thousands, except per share data)

   May 2,
2015
     May 3,
2014
 

Numerator for diluted net income per share – net income

   $ 66,946       $ 49,953   

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

     64,180         64,273   

Dilutive effect of stock options and non-vested stock

     375         334   
  

 

 

    

 

 

 

Denominator for diluted net income per share

  64,555      64,607   

Net income per common share:

Basic

$ 1.04    $ 0.78   

Diluted

$ 1.04    $ 0.77   
Business and Basis of Presentation - Additional Information (Detail)
May 2, 2015
State
Store
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
Number of stores
797 
Number of states in which entity operates
48 
Business and Basis of Presentation - Details of Company Operated Stores (Detail)
May 2, 2015
Store
Product Information [Line Items]
 
Number of stores
797 
Alabama [Member]
 
Product Information [Line Items]
 
Number of stores
12 
Alaska [Member]
 
Product Information [Line Items]
 
Number of stores
Arizona [Member]
 
Product Information [Line Items]
 
Number of stores
24 
Arkansas [Member]
 
Product Information [Line Items]
 
Number of stores
California [Member]
 
Product Information [Line Items]
 
Number of stores
93 
Colorado [Member]
 
Product Information [Line Items]
 
Number of stores
17 
Connecticut [Member]
 
Product Information [Line Items]
 
Number of stores
Delaware [Member]
 
Product Information [Line Items]
 
Number of stores
Florida [Member]
 
Product Information [Line Items]
 
Number of stores
55 
Georgia [Member]
 
Product Information [Line Items]
 
Number of stores
26 
Idaho [Member]
 
Product Information [Line Items]
 
Number of stores
Illinois [Member]
 
Product Information [Line Items]
 
Number of stores
45 
Indiana [Member]
 
Product Information [Line Items]
 
Number of stores
15 
Iowa [Member]
 
Product Information [Line Items]
 
Number of stores
Kansas [Member]
 
Product Information [Line Items]
 
Number of stores
Kentucky [Member]
 
Product Information [Line Items]
 
Number of stores
10 
Louisiana [Member]
 
Product Information [Line Items]
 
Number of stores
16 
Maine [Member]
 
Product Information [Line Items]
 
Number of stores
Maryland [Member]
 
Product Information [Line Items]
 
Number of stores
12 
Massachusetts [Member]
 
Product Information [Line Items]
 
Number of stores
13 
Michigan [Member]
 
Product Information [Line Items]
 
Number of stores
37 
Minnesota [Member]
 
Product Information [Line Items]
 
Number of stores
12 
Mississippi [Member]
 
Product Information [Line Items]
 
Number of stores
Missouri [Member]
 
Product Information [Line Items]
 
Number of stores
16 
Montana [Member]
 
Product Information [Line Items]
 
Number of stores
Nebraska [Member]
 
Product Information [Line Items]
 
Number of stores
Nevada [Member]
 
Product Information [Line Items]
 
Number of stores
New Hampshire [Member]
 
Product Information [Line Items]
 
Number of stores
New Jersey [Member]
 
Product Information [Line Items]
 
Number of stores
20 
New Mexico [Member]
 
Product Information [Line Items]
 
Number of stores
New York [Member]
 
Product Information [Line Items]
 
Number of stores
29 
North Carolina [Member]
 
Product Information [Line Items]
 
Number of stores
25 
North Dakota [Member]
 
Product Information [Line Items]
 
Number of stores
Ohio [Member]
 
Product Information [Line Items]
 
Number of stores
29 
Oklahoma [Member]
 
Product Information [Line Items]
 
Number of stores
Oregon [Member]
 
Product Information [Line Items]
 
Number of stores
Pennsylvania [Member]
 
Product Information [Line Items]
 
Number of stores
29 
Rhode Island [Member]
 
Product Information [Line Items]
 
Number of stores
South Carolina [Member]
 
Product Information [Line Items]
 
Number of stores
13 
South Dakota [Member]
 
Product Information [Line Items]
 
Number of stores
Tennessee [Member]
 
Product Information [Line Items]
 
Number of stores
11 
Texas [Member]
 
Product Information [Line Items]
 
Number of stores
80 
Utah [Member]
 
Product Information [Line Items]
 
Number of stores
11 
Virginia [Member]
 
Product Information [Line Items]
 
Number of stores
21 
Washington [Member]
 
Product Information [Line Items]
 
Number of stores
16 
West Virginia [Member]
 
Product Information [Line Items]
 
Number of stores
Wisconsin [Member]
 
Product Information [Line Items]
 
Number of stores
14 
Wyoming [Member]
 
Product Information [Line Items]
 
Number of stores
Summary of Significant Accounting Policies - Black-Scholes Valuation Model Weighted-Average Assumptions (Detail)
3 Months Ended
May 2, 2015
May 3, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
 
 
Volatility rate
38.00% 
41.10% 
Average risk-free interest rate
1.10% 
1.40% 
Average expected life (in years)
3 years 7 months 6 days 
3 years 9 months 18 days 
Dividend yield
   
   
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
May 2, 2015
May 3, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Compensation expenses
$ 3,342 
$ 4,063 
Employee Stock Option [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Number of shares granted
87 
287 
Weighted-average fair value of stock option
$ 44.84 
$ 32.04 
Compensation expenses
2,031 
2,133 
Unrecognized compensation expense
17,440 
 
Restricted Stock [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Number of shares granted
63 
46 
Compensation expenses
1,311 
1,930 
Unrecognized compensation expense
$ 15,322 
 
Commitments and Contingencies - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
May 2, 2015
May 3, 2014
Long-term Purchase Commitment [Line Items]
 
 
Total rent expense under operating leases
$ 44,558 
$ 38,538 
Minimum [Member]
 
 
Long-term Purchase Commitment [Line Items]
 
 
Non-cancelable operating lease terms
3 years 
 
Maximum [Member]
 
 
Long-term Purchase Commitment [Line Items]
 
 
Non-cancelable operating lease terms
10 years 
 
Notes Payable - Additional Information (Detail) (USD $)
3 Months Ended
May 2, 2015
Jan. 31, 2015
May 3, 2014
Line of Credit Facility [Line Items]
 
 
 
Letters of credit, maximum borrowing capacity
$ 200,000,000 
 
 
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
LIBOR plus 1.50% 
 
 
Percentage of unused Line of Credit Facility Fee
0.20% 
 
 
Outstanding debt under credit facility
Subfacility for Standby Letters of Credit [Member]
 
 
 
Line of Credit Facility [Line Items]
 
 
 
Letters of credit, maximum borrowing capacity
$ 10,000,000 
 
 
Fair Value Measurements - Additional Information (Detail) (Fair Value, Inputs, Level 2 [Member], USD $)
In Thousands, unless otherwise specified
May 2, 2015
Jan. 31, 2015
May 3, 2014
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Deferred compensation plan liability
$ 8,269 
$ 5,574 
$ 4,376 
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
May 2, 2015
May 3, 2014
Earnings Per Share [Abstract]
 
 
Numerator for diluted net income per share - net income
$ 66,946 
$ 49,953 
Denominator for basic net income per share - weighted-average common shares
64,180 
64,273 
Dilutive effect of stock options and non-vested stock
375 
334 
Denominator for diluted net income per share
64,555 
64,607 
Net income per common share:
 
 
Basic
$ 1.04 
$ 0.78 
Diluted
$ 1.04 
$ 0.77 
Net Income Per Common Share - Additional Information (Detail)
In Thousands, unless otherwise specified
3 Months Ended
May 2, 2015
May 3, 2014
Earnings Per Share [Abstract]
 
 
Anti-dilutive stock options excluded from computation of net income per common share
200 
665 
Share Repurchase Program - Additional Information (Detail) (USD $)
3 Months Ended 3 Months Ended
May 2, 2015
Sep. 11, 2014
2013 Share Repurchase Program [Member]
May 2, 2015
2014 Share Repurchase Program [Member]
May 3, 2014
2014 Share Repurchase Program [Member]
Mar. 12, 2015
2014 Share Repurchase Program [Member]
May 2, 2015
2014 Share Repurchase Program [Member]
Maximum [Member]
Stock Repurchase Program [Line Items]
 
 
 
 
 
 
Repurchase of common stock authorized amount
 
 
 
 
 
$ 300,000,000 
Shares authorized but unused amount revoked
 
112,664,000 
 
 
 
 
Repurchase of common stock authorized increase
 
 
 
 
100,000,000 
 
Repurchase of common stock, shares
 
 
192,000 
 
 
Repurchase of common stock
$ 27,956,000 
 
$ 27,956,000 
 
 
 
Repurchase of common stock, average price per share
 
 
$ 145.26