Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Feb. 02, 2019	Mar. 28, 2019	Aug. 03, 2018
Document And Entity Information
Entity Registrant Name	Ulta Beauty, Inc.
Entity Central Index Key	0001403568
Document Type	10-K
Document Period End Date	Feb. 02, 2019
Amendment Flag	false
Current Fiscal Year End Date	--02-02
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 10,735,950,000
Entity Common Stock, Shares Outstanding		58,803,744
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Trading Symbol	ULTA

Consolidated Balance Sheets - USD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018
Current assets:
Cash and cash equivalents	$ 409,251	$ 277,445
Short-term investments		120,000
Receivables, net	136,168	99,719
Merchandise inventories, net	1,214,329	1,096,424
Prepaid expenses and other current assets	138,116	98,666
Prepaid income taxes	16,997	1,489
Total current assets	1,914,861	1,693,743
Property and equipment, net	1,226,029	1,189,453
Goodwill	10,870
Other intangible assets, net	4,317
Deferred compensation plan assets	20,511	16,827
Other long-term assets	14,584	8,664
Total assets	3,191,172	2,908,687
Current liabilities:
Accounts payable	404,016	325,758
Accrued liabilities	220,666	189,171
Deferred revenue	199,054	113,136
Accrued income taxes		14,101
Total current liabilities	823,736	642,166
Deferred rent	434,980	407,916
Deferred income taxes	83,864	59,403
Other long-term liabilities	28,374	24,985
Total liabilities	1,370,954	1,134,470
Commitments and contingencies (Note 8)
Stockholders' equity:
Common stock, $0.01 par value, 400,000 shares authorized; 59,232 and 61,441 shares issued; 58,584 and 60,822 shares outstanding; at February 2, 2019 and February 3, 2018, respectively	592	614
Treasury stock-common, at cost	(24,908)	(18,767)
Additional paid-in capital	738,671	698,917
Retained earnings	1,105,863	1,093,453
Total stockholders' equity	1,820,218	1,774,217
Total liabilities and stockholders' equity	$ 3,191,172	$ 2,908,687

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Feb. 02, 2019	Feb. 03, 2018
Consolidated Balance Sheets
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	400,000	400,000
Common stock, shares issued	59,232	61,441
Common stock, shares outstanding	58,584	60,822

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands		3 Months Ended								12 Months Ended
	Feb. 03, 2018	Feb. 02, 2019	Nov. 03, 2018	Aug. 04, 2018	May 05, 2018	Feb. 03, 2018	Oct. 28, 2017	Jul. 29, 2017	Apr. 29, 2017	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Consolidated Statements of Income
Net sales	$ 108,756	$ 2,124,716	$ 1,560,011	$ 1,488,221	$ 1,543,667	$ 1,937,592	$ 1,342,181	$ 1,289,854	$ 1,314,879	$ 6,716,615	$ 5,884,506	$ 4,854,737
Cost of sales		1,383,857	987,733	952,760	982,954	1,279,245	849,053	820,528	838,871	4,307,304	3,787,697	3,107,508
Gross profit		740,859	572,278	535,461	560,713	658,347	493,128	469,326	476,008	2,409,311	2,096,809	1,747,229
Selling, general and administrative expenses		457,245	395,453	337,142	345,624	399,631	320,729	283,427	283,445	1,535,464	1,287,232	1,073,834
Pre-opening expenses		2,404	7,612	4,504	5,247	4,297	9,732	6,099	4,158	19,767	24,286	18,571
Operating income		281,210	169,213	193,815	209,842	254,419	162,667	179,800	188,405	854,080	785,291	654,824
Interest income, net		(1,275)	(1,318)	(1,143)	(1,325)	(359)	(316)	(555)	(338)	(5,061)	(1,568)	(890)
Income before income taxes		282,485	170,531	194,958	211,167	254,778	162,983	180,355	188,743	859,141	786,859	655,714
Income tax expense		67,811	39,365	46,635	46,771	46,605	58,338	66,162	60,520	200,582	231,625	245,954
Net income		$ 214,674	$ 131,166	$ 148,323	$ 164,396	$ 208,173	$ 104,645	$ 114,193	$ 128,223	$ 658,559	$ 555,234	$ 409,760
Net income per common share:
Basic		$ 3.64	$ 2.20	$ 2.47	$ 2.71	$ 3.42	$ 1.71	$ 1.84	$ 2.06	$ 11.00	$ 9.02	$ 6.55
Diluted		$ 3.61	$ 2.18	$ 2.46	$ 2.70	$ 3.40	$ 1.70	$ 1.83	$ 2.05	$ 10.94	$ 8.96	$ 6.52
Weighted average common shares outstanding:
Basic										59,864	61,556	62,519
Diluted										60,181	61,975	62,851

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Operating activities
Net income	$ 658,559	$ 555,234	$ 409,760
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	279,472	252,713	210,295
Deferred income taxes	34,080	(27,095)	26,971
Non-cash stock compensation charges	26,636	24,399	19,340
Excess tax benefits from stock-based compensation			(9,053)
Loss on disposal of property and equipment	2,885	7,518	9,140
Change in operating assets and liabilities, net of acquisitions:
Receivables	(36,387)	(11,088)	(23,639)
Merchandise inventories	(122,019)	(152,449)	(182,182)
Prepaid expenses and other current assets	(39,450)	(10,045)	(16,073)
Income taxes	(29,609)	3,641	5,322
Accounts payable	78,256	66,240	63,344
Accrued liabilities and deferred revenue	79,949	36,891	71,057
Deferred rent	27,064	41,725	44,402
Other assets and liabilities	(3,309)	(8,318)	5,701
Net cash provided by operating activities	956,127	779,366	634,385
Investing activities
Purchases of short-term investments	(386,193)	(330,000)	(90,000)
Proceeds from short-term investments	506,193	240,000	190,000
Purchases of property and equipment	(319,400)	(440,714)	(373,447)
Acquisitions, net of cash acquired	(13,606)
Purchases of equity investments	(2,101)
Net cash used in investing activities	(215,107)	(530,714)	(273,447)
Financing activities
Repurchase of common shares	(616,194)	(367,581)	(344,275)
Stock options exercised	13,121	16,190	16,293
Purchase of treasury shares	(6,141)	(4,243)	(2,839)
Excess tax benefits from stock-based compensation			9,053
Debt issuance costs		(583)
Net cash used in financing activities	(609,214)	(356,217)	(321,768)
Net increase (decrease) in cash and cash equivalents	131,806	(107,565)	39,170
Cash and cash equivalents at beginning of period	277,445	385,010	345,840
Cash and cash equivalents at end of period	409,251	277,445	385,010
Supplemental cash flow information
Cash paid for income taxes (net of refunds)	195,869	254,619	212,514
Non-cash investing activities:
Change in property and equipment included in accrued liabilities	$ 11	$ 4,562	$ 2,446

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock	Treasury - Common Stock	Additional Paid-In Capital	Retained Earnings	Total
Balance at Jan. 30, 2016	$ 641	$ (11,685)	$ 621,715	$ 832,215	$ 1,442,886
Balance (in shares) at Jan. 30, 2016	64,131	(591)
Net income				409,760	409,760
Stock compensation charge			19,340		19,340
Stock options exercised and other awards	$ 2		16,291		16,293
Stock options exercised and other awards (in shares)	241
Excess tax benefits from stock-based compensation			9,053		9,053
Purchase of treasury shares		$ (2,839)			(2,839)
Purchase of treasury shares (in shares)		(13)
Repurchase of common shares	$ (16)		(8,069)	(336,190)	(344,275)
Repurchase of common shares (in shares)	(1,639)
Balance at Jan. 28, 2017	$ 627	$ (14,524)	658,330	905,785	1,550,218
Balance (in shares) at Jan. 28, 2017	62,733	(604)
Net income				555,234	555,234
Stock compensation charge			24,399		24,399
Stock options exercised and other awards	$ 2		16,188		16,190
Stock options exercised and other awards (in shares)	212
Purchase of treasury shares		$ (4,243)			(4,243)
Purchase of treasury shares (in shares)		(15)
Repurchase of common shares	$ (15)			(367,566)	$ (367,581)
Repurchase of common shares (in shares)	(1,504)				(1,504)
Balance at Feb. 03, 2018	$ 614	$ (18,767)	698,917	1,093,453	$ 1,774,217
Balance (in shares) at Feb. 03, 2018	61,441	(619)			60,822
Net income				658,559	$ 658,559
Stock compensation charge			26,636		26,636
Adoption of accounting standards (Note 4)				(29,980)	(29,980)
Stock options exercised and other awards	$ 3		13,118		13,121
Stock options exercised and other awards (in shares)	255
Purchase of treasury shares		$ (6,141)			(6,141)
Purchase of treasury shares (in shares)		(29)
Repurchase of common shares	$ (25)			(616,169)	$ (616,194)
Repurchase of common shares (in shares)	(2,464)				(2,464)
Balance at Feb. 02, 2019	$ 592	$ (24,908)	$ 738,671	$ 1,105,863	$ 1,820,218
Balance (in shares) at Feb. 02, 2019	59,232	(648)			58,584

Business and basis of presentation	12 Months Ended
Business and basis of presentation	Feb. 02, 2019
Business and basis of presentation
Business and basis of presentation	1. Business and basis of presentation On January 29, 2017, Ulta Salon, Cosmetics & Fragrance, Inc. implemented a holding company reorganization. Pursuant to the reorganization, Ulta Beauty, Inc., which was incorporated as a Delaware corporation in December 2016, became the successor to Ulta Salon, Cosmetics & Fragrance, Inc., the former publicly-traded company and now a wholly owned subsidiary of Ulta Beauty. As used in these notes and throughout this Annual Report on Form 10‑K, all references to “we,” “us,” “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 February 2, 2019, the Company operated 1,174 stores across 50 states. All amounts are stated in thousands, with the exception of per share amounts and number of stores. The Company has one reportable segment, which includes retail stores, salon services, and e-commerce.

Summary of significant accounting policies

12 Months Ended

Feb. 02, 2019

Summary of significant accounting policies

Summary of significant accounting policies

2. Summary of significant accounting policies

Fiscal year

The Company’s fiscal year is the 52 or 53 weeks ending on the Saturday closest to January 31. The Company’s fiscal years ended February 2, 2019 (fiscal 2018), February 3, 2018 (fiscal 2017), and January 28, 2017 (fiscal 2016) were 52, 53, and 52-week years, respectively.

Consolidation

The Company’s consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts, transactions, and unrealized profit were eliminated in consolidation.

Use of estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the accounting period. Actual results could differ from those estimates.

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation.

Cash and cash equivalents

Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of three months or less from the date of purchase. Cash equivalents also include amounts due from third-party financial institutions for credit card and debit card transactions. These receivables typically settle in five days or less with little or no default risk. Amounts from third-party financial institutions for credit card and debit card transactions were $57,698 and $60,773 as of February 2, 2019 and February 3, 2018, respectively.

Short-term investments

The Company determines the balance sheet classification of its investments at the time of purchase and evaluates the classification at each balance sheet date. Money market funds, certificates of deposit, and time deposits with maturities of greater than three months but no more than twelve months are carried at cost, which approximates fair value and are recorded in the consolidated balance sheets in short-term investments (see Note 13, “Investments”).

Receivables

Receivables consist principally of amounts due from vendors and landlord construction allowances earned but not yet received. These receivables are computed based on provisions of the vendor and lease agreements in place and the Company’s completed performance. The Company does not require collateral on its receivables and does not accrue interest. Credit risk with respect to receivables is limited due to the diversity of vendors and landlords comprising the Company’s vendor base. The Company performs ongoing credit evaluations of its vendors and evaluates the collectability of its receivables based on the length of time the receivable is past due and historical experience.

The receivable for vendor allowances was $97,885 and $78,238 as of February 2, 2019 and February 3, 2018, respectively. The receivable for landlord allowances was $19,746 and $12,729 as of February 2, 2019 and February 3, 2018, respectively. The allowance for doubtful receivables was $651 and $1,371 as of February 2, 2019 and February 3, 2018, respectively.

Merchandise inventories

Merchandise inventories are stated at the lower of cost or market. Cost is determined using the weighted-average cost method and includes costs incurred to purchase and distribute goods. Inventory cost also includes vendor allowances related to co-op advertising, markdowns, and volume discounts. The Company maintains an inventory reserve for lower of cost or market and shrink. The inventory reserve was $36,640 and $24,804 as of February 2, 2019 and February 3, 2018, respectively.

Fair value of financial instruments

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. The Company had no outstanding debt as of February 2, 2019 and February 3, 2018.

Property and equipment

The Company’s property and equipment are stated at cost, net of accumulated depreciation and amortization. Maintenance and repairs are charged to operating expense as incurred. The Company’s assets are depreciated or amortized using the straight-line method over the shorter of their estimated useful lives or the expected lease term as follows:


Equipment and fixtures	3 to 10 years
Leasehold improvements	10 years
Electronic equipment and software	3 to 5 years

The Company capitalizes costs incurred during the application development stage in developing or purchasing internal use software. These costs are amortized over the estimated useful life of the software.

The Company periodically evaluates whether changes have occurred that would require revision of the remaining useful life of equipment and leasehold improvements or render them not recoverable. If such circumstances arise, the Company uses an estimate of the undiscounted sum of expected future operating cash flows during their holding period to determine whether the long-lived assets are impaired. If the aggregate undiscounted cash flows are less than the carrying amount of the assets, the resulting impairment charges to be recorded are calculated based on the excess of the carrying value of the assets over the fair value of such assets. No significant impairment charges were recognized in fiscal 2018, fiscal 2017, or fiscal 2016. Impairment charges are included in selling, general and administrative (SG&A) expenses in the consolidated statements of income.

Goodwill

Goodwill represents the excess of cost over the fair value of net assets acquired. The Company reviews the recoverability of goodwill annually during the fourth quarter or more frequently if an event occurs or circumstances change that would indicate that impairment may exist (see Note 6, “Goodwill”).

Other intangible assets

Other definite-lived intangible assets are amortized over their useful lives. The Company reviews the recoverability of long-lived assets whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable (see Note 7, “Other intangible assets”).

Loyalty program

The Company maintains a loyalty program, Ultamate Rewards, which allows members to earn points based on purchases of merchandise or services. Points earned are valid for at least one year. The loyalty program represents a material right to the customer and points may be redeemed on future products and services. The relative standalone selling price of points earned by members is included in deferred revenue on the consolidated balance sheets based on the percentage of points expected to be redeemed. The expected redemption percentage is based on historical redemption patterns and considers current information or trends.

When a guest redeems points or the points expire, the Company recognizes revenue in net sales on the consolidated statements of income.

Prior to fiscal 2018, loyalty program revenue was recorded using the incremental cost method within cost of sales on the consolidated statements of income.

Credit cards

The Company has agreements (the Agreements) with third parties to provide guests with private label credit cards and/or co-branded credit cards (collectively, the Credit Cards). The private label credit card can be used at any store location and online, and the co-branded credit card can be used anywhere the co-branded card is accepted. A third-party financing company is the sole owner of the accounts and underwrites the credit issued under the Credit Card programs. The Company’s performance obligation is to maintain the Ultamate Rewards loyalty program as only guests enrolled in the loyalty program can apply for the Credit Cards. Loyalty members earn points through purchases at Ulta Beauty and anywhere the co-branded credit card is accepted.

The third parties reimburse the Company for certain credit card program costs such as advertising and loyalty points, which help promote the credit card program. The Company recognizes revenue when collectability is reasonably assured, under the assumption the amounts are not constrained and it is probable that a significant revenue reversal will not occur in future periods, which is generally the time at which the actual usage of the Credit Cards or specified transaction occurs.

The Company accounts for the amounts associated with the Agreements as a single contract with the sole commercial objective to maintain the Credit Card programs. As a result, all amounts associated with the Agreements are recognized within net sales on the consolidated statements of income.

Other administrative costs related to the Credit Card programs, including payroll, marketing expenses, and other direct costs, are included in SG&A expenses on the consolidated statements of income.

Deferred rent

Many of the Company’s operating leases contain predetermined fixed increases of the minimum rental rate during the lease term. For these leases, the Company recognizes the related rental expense on a straight-line basis over the expected lease term and records the difference between the amounts charged to expense and the rent paid as deferred rent. The lease term commences on the date the Company takes possession of the leased space.

For most lease agreements, the Company receives construction allowances from landlords for tenant improvements. These leasehold improvements made by the Company are capitalized and amortized over the shorter of the lease term or 10 years. The construction allowances are recorded as deferred rent and amortized on a straight-line basis over the lease term as a reduction of rent expense.

Gift card program

The Company records a contract liability for gift card sales which will be redeemed in the future within deferred revenue on the consolidated balance sheets and recognized in net sales when the gift card is redeemed for product or services. The Company’s gift cards do not expire and do not include service fees that decrease guest balances. The Company has maintained historical data related to gift card transactions sold and redeemed over a significant time frame. The Company recognizes gift card breakage (amounts not expected to be redeemed) to the extent there is no requirement for remitting balances to governmental agencies under unclaimed property laws. Estimated gift card breakage revenue is recognized over time in proportion to actual gift card redemptions. Gift card breakage revenue was $12,446, $7,783, and $5,335 in fiscal 2018, 2017, and 2016, respectively.

Revenue recognition

Revenue is recognized when control of the promised goods or services is transferred to the guest, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

The Company determines revenue recognition through the following steps:

·

Identification of the contract, or contracts, with a guest;

·

Identification of the performance obligations in the contract;

·

Determination of the transaction price;

·

Allocation of the transaction price to the performance obligations in the contract; and

·

Recognition of revenue when, or as, a performance obligation is satisfied.

The Company’s net sales include retail stores and e-commerce merchandise sales as well as salon services and other revenue.

Revenue from merchandise sales at retail stores is recognized at the point of sale, net of estimated returns. Revenue from e-commerce merchandise sales is recognized upon shipment of the merchandise to the guest based on meeting the transfer of control criteria, net of estimated returns. E-commerce revenue amounted to $752,224, $568,736, and $345,342 in fiscal 2018, 2017, and 2016, respectively. Shipping and handling are treated as costs to fulfill the contract, and as a result, any fees received from guests are included in the transaction price allocated to the performance obligation of providing goods with a corresponding amount accrued within cost of sales for amounts paid to applicable carriers. The Company provides refunds for merchandise returns within 60 days from the original purchase date. State sales taxes are presented on a net basis as the Company considers itself a pass-through conduit for collecting and remitting state sales tax. Company coupons and other incentives are recorded as a reduction of net sales.

Salon services revenue is recognized at the time the service is provided to the guest. Salon service revenue was $300,863, $277,361, and $241,105 in fiscal 2018, 2017 and 2016, respectively.

Other revenue sources include the private label credit card and co-branded credit card programs, as well as deferred revenue related to the loyalty program and gift card breakage.

Vendor allowances

The Company receives allowances from vendors in the normal course of business including advertising and markdown allowances, purchase volume discounts and rebates, reimbursement for defective merchandise, and certain selling and display expenses. Substantially all vendor allowances are recorded as a reduction of the vendor’s product cost and are recognized in cost of sales as the product is sold.

Advertising

Advertising expense consists principally of print, digital and social media, and television and radio advertising. The Company expenses the costs related to its advertising in the period the related promotional event occurs. Total advertising costs, exclusive of incentives from vendors and start-up advertising expense, amounted to $294,489, $259,423, and $212,714 in fiscal 2018, 2017 and 2016, respectively. Advertising expense as a percentage of sales was 4.4% in fiscal 2018, 2017 and 2016. Prepaid advertising costs included in prepaid expenses and other current assets on the consolidated balance sheets were $9,384 and $12,811 as of February 2, 2019 and February 3, 2018, respectively.

Pre-opening expenses

Non-capital expenditures incurred prior to the grand opening of a new, remodeled, or relocated store are expensed as incurred.

Cost of sales

Cost of sales includes the cost of merchandise sold, including substantially all vendor allowances, which are treated as a reduction of merchandise costs; distribution costs including labor and related benefits, freight, rent, depreciation and amortization, real estate taxes, utilities, and insurance; shipping and handling costs; retail stores occupancy costs including rent, depreciation and amortization, real estate taxes, utilities, repairs and maintenance, insurance, licenses, and cleaning expenses; salon services payroll and benefits; and shrink and inventory valuation reserves.

Selling, general and administrative expenses

SG&A expenses includes payroll, bonus, and benefit costs for retail and corporate employees; advertising and marketing costs; occupancy costs related to our corporate office facilities; stock-based compensation expense; depreciation and amortization for all assets, except those related to our retail store and distribution operations, which are included in cost of sales; and legal, finance, information systems, and other corporate overhead costs.

Income taxes

Deferred income taxes reflect the net tax effect of temporary differences between the financial statement carrying amounts of assets and liabilities and their tax bases. The amounts reported were derived using the enacted tax rates in effect for the year the differences are expected to reverse.

Income tax benefits related to uncertain tax positions are recognized only when it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that each uncertain tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information. Penalties and interest related to unrecognized tax positions are recorded in income tax expense in the consolidated statements of income.

Share-based compensation

Share-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized on a straight-line basis over the requisite service period for awards expected to vest. The Company recorded stock compensation expense of $27,489, $24,399, and $19,340 in fiscal 2018, 2017, and 2016, respectively (see Note 14, “Share-based awards”).

Insurance expense

The Company has insurance programs with third party insurers for employee health, workers compensation, and general liability, among others, to limit the Company’s liability exposure. The insurance programs are premium based and include retentions, deductibles, and stop loss coverage. Current stop loss coverage per claim is $350 for employee health claims, $100 for general liability claims, and $250 for workers compensation claims. The Company makes collateral and premium payments during the plan year and accrues expenses in the event additional premium is due from the Company based on actual claim results. In fiscal 2018, the Company created UB Insurance, Inc., an Arizona-based wholly owned captive insurance subsidiary of the Company, which charges the operating subsidiaries of the Company premiums to insure certain liability exposures. Pursuant to Arizona insurance regulations, UB Insurance, Inc. maintains certain levels of cash and cash equivalents related to its liability exposures.

Net income per common share

Basic net income per common share is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per common share includes dilutive common stock equivalents, using the treasury stock method (see Note 15, “Net income per common share”).

Recent accounting pronouncements not yet adopted

Leases

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016‑02, Leases (Topic 842). The guidance in ASU 2016-02 and subsequently issued amendments requires lessees to capitalize virtually all leases with terms of more than twelve months on the balance sheet as a right-of-use asset and recognize an associated 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 or operating leases and their classification impacts the recognition of expense in the income statement. Entities are allowed to apply the modified retrospective approach (1) retrospectively to each comparative period presented or (2) retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment. ASU 2016‑02 is effective for public companies for interim and annual reporting periods beginning after December 15, 2018.

The Company will adopt the new standard on February 3, 2019 using the modified retrospective approach. Therefore, upon adoption, the Company will recognize and measure leases without revising comparative period information or disclosures.

The Company formed a cross-functional project team to assess the impact of the standard on the consolidated financial statements, which included updating the lease software and identifying changes to processes and controls. The Company plans to implement the transition package of three practical expedients permitted within the standard, which among other things, allows for the carryforward of historical lease classifications. The Company will make an accounting policy election to keep leases with terms of twelve months or less off the balance sheet and result in recognizing those lease payments on a straight-line basis over the lease term.

As a result of adopting ASU 2016‑02, the Company estimates it will record lease liabilities of approximately $1,900,000 with a corresponding amount for the right-of-use assets, which will also be adjusted by reclassifications of existing assets and liabilities primarily related to deferred rent. The adoption of this new standard is not expected to have a material impact on the Company’s consolidated results of operations or cash flows.

Intangibles – Goodwill and Other-Internal-Use Software

In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customers Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which clarifies and aligns the accounting for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019 and should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. The adoption of ASU 2018-15 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

Revenue Recognition from Contracts with Customers

In May 2014, the FASB issued ASU 2014‑09, Revenue from Contracts with Customers (ASU 2014‑09), issued as a new Topic, Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition (ASC 605). The guidance in ASU 2014-09 and subsequently issued amendments outlines a comprehensive model for all entities to use in accounting for revenue arising from contracts with customers as well as required disclosures. Under the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration, which the entity expects to receive in exchange for those goods or services. The new standard requires additional disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers including significant judgments and changes in judgments.

The Company adopted the new revenue standard effective February 4, 2018 using the modified retrospective transition method applied to all contracts with the cumulative effect recorded to the opening balance of retained earnings as of the date of adoption. The comparative information has not been restated and continues to be reported under accounting standards in effect for those periods. The adoption of the new revenue standard did not have a material impact on the Company’s consolidated financial position, results of operations, or cash flows. The Company expects the impact of the adoption of the new revenue standard will be immaterial to net income on an ongoing basis. See Note 4, “Revenue”, for further details.

Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies how all entities assess goodwill for impairment by eliminating Step 2 from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, except that the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019 and should be applied prospectively. Early adoption is permitted. The Company early adopted the new guidance, prospectively, in the fourth quarter of fiscal 2018, and its adoption had no material impact on the Company’s consolidated financial position, results of operation, or cash flows.

Acquisitions	12 Months Ended
Acquisitions	Feb. 02, 2019
Acquisitions
Acquisitions	3. Acquisitions The Company continues to make investments to evolve the customer experience, with a strong emphasis on integrating technology across the business. To support these efforts, the Company paid $13,606 to acquire two technology companies in fiscal 2018. On September 10, 2018, the Company acquired QM Scientific, an artificial intelligence technology company. The acquisition is not material to the Company’s consolidated financial statements. On October 29, 2018, the Company acquired GlamST, an augmented reality technology company. The acquisition is not material to the Company’s consolidated financial statements.

Revenue

12 Months Ended

Feb. 02, 2019

Revenue

Revenue

4. Revenue

Revenue from Contracts with Customers

On February 4, 2018, the Company adopted ASC 606 using the modified retrospective method applied to all contracts as of the date of adoption. The cumulative effect of initially applying the new revenue standard was recorded as an adjustment to the opening balance of retained earnings within the consolidated balance sheets. Under ASC 606, changes were made to the recognition timing or classification of revenues and expenses for the following:


Description	Policy under ASC 605	Policy under ASC 606
Credit card program	Recognized amounts earned under the private label credit card and co-branded credit card programs as a reduction of cost of sales and selling, general and administrative expenses.	Recognize amounts earned under private label credit card and co-branded credit card programs within net sales.
Loyalty program	Recognized revenue under the incremental cost method at the time of purchase by the guest (when points were earned). Recorded a liability for the cost associated with the future performance obligation to the guest.	Recognize revenue under the deferred revenue method by deferring the recognition of the portion of revenue related to the earning of loyalty points to a future period when the guest redeems the points or the points expire.
Gift card breakage	Recognized gift card breakage (amounts not expected to be redeemed) within selling, general and administrative expenses.	Recognize gift card breakage in net sales proportionately as other gift card balances are redeemed.
Sales refund reserve	Recognized a sales refund reserve as a net liability within accrued liabilities.	Recognize a sales refund reserve on a gross basis as a liability within accrued liabilities and a right of return asset within prepaid expense and other current assets.
E-commerce revenue	Recognized revenue based on delivery of merchandise to the guest.	Recognize revenue upon shipment of merchandise to the guest based on meeting the transfer of control criteria.

Upon the adoption of ASC 606, the Company recognized the cumulative effect of $29,980, net of tax, as a reduction to the opening balance of retained earnings as of February 4, 2018. The cumulative effect of adoption is primarily related to the change in accounting for the loyalty program. The comparative information has not been restated and continues to be reported under accounting standards in effect for those periods. The adoption of the new revenue standard did not have a material impact on the Company’s consolidated financial position, results of operations, or cash flows. The Company expects the impact of the adoption of the new revenue standard will be immaterial to net income on an ongoing basis.

The Company’s net sales include retail stores and e-commerce merchandise sales as well as salon services and other revenue. Other revenue sources include the private label credit card and co-branded credit card programs, as well as deferred revenue related to the loyalty program and gift card breakage.

Disaggregated revenue

The following table sets forth the amount of net sales attributable to retail stores, e-commerce, salon services, and other:


	Fiscal year ended
	February 2,			February 3,			January 28,
(Dollars in thousands)	2019			2018			2017
Retail stores	$	5,614,624	84%	$	5,038,409	85%	$	4,268,290	88%
E-commerce		752,224	11%		568,736	10%		345,342	7%
Salon services		300,863	4%		277,361	5%		241,105	5%
Other		48,904	1%		-	0%		-	0%
Total	$	6,716,615	100%	$	5,884,506	100%	$	4,854,737	100%

The following table sets forth the approximate percentage of net sales by primary category:


	Fiscal year ended
	February 2,	February 3,	January 28,
	2019	2018	2017
Cosmetics	51%	51%	51%
Skincare, Bath & Fragrance	21%	21%	20%
Haircare Products & Styling Tools	19%	19%	20%
Salon Services	4%	5%	5%
Other (nail products, accessories, and other)	5%	4%	4%
	100%	100%	100%

Deferred revenue

Deferred revenue primarily represents contract liabilities for the Company’s obligation to transfer additional goods or services to a guest for which the Company has received consideration, such as unredeemed Ultamate Rewards loyalty points and unredeemed Ulta Beauty gift cards. In addition, the Company recognizes breakage on gift cards proportionately as redemption occurs.

The following table provides a summary of the changes included in deferred revenue during fiscal 2018:


	Fiscal year ended
	February 2, 2019
Beginning balance	$	110,103
Adoption of ASC 606		38,773
Additions to contract liabilities (1)		140,638
Deductions to contract liabilities (2)		(95,929)
Ending balance	$	193,585

(1)

Loyalty points and gift cards issued in the current period but not redeemed or expired.

(2)

Revenue recognized in the current period related to the beginning liability.

Property and equipment

12 Months Ended

Feb. 02, 2019

Property and equipment

Property and equipment

5. Property and equipment

Property and equipment consists of the following:


	February 2,		February 3,
(In thousands)	2019		2018
Equipment and fixtures	$	994,668	$	834,931
Leasehold improvements		785,276		705,943
Electronic equipment and software		544,618		485,368
Construction-in-progress		50,574		122,419
		2,375,136		2,148,661
Less: accumulated depreciation and amortization		(1,149,107)		(959,208)
Property and equipment, net	$	1,226,029	$	1,189,453

Goodwill

12 Months Ended

Feb. 02, 2019

Goodwill

Goodwill

6. Goodwill

The changes in the carrying amounts of goodwill during the fiscal years 2018 and 2017 are as follows:


(In thousands)
Balance as of February 3, 2018	$	-
Acquisitions		10,870
Balance as of February 2, 2019	$	10,870

The Company did not have a goodwill balance prior to fiscal 2018.

Other intangible assets

12 Months Ended

Feb. 02, 2019

Other intangible assets

Other intangible assets

7. Other intangible assets

Other intangible assets subject to amortization consists of the following:


		February 2, 2019
	Weighted-average	Gross
	remaining useful life in	carrying		Accumulated
(In thousands)	years	value		amortization		Net
Developed technology	4.7	$	4,631	$	(314)	$	4,317

The Company did not have any other intangible assets prior to fiscal 2018.

Amortization expense related to intangible assets was $314, $0, and $0 in fiscal 2018, fiscal 2017, and fiscal 2016, respectively.

Estimated amortization expense related to intangible assets at February 2, 2019, for the next five years and thereafter is as follows:


	Estimated
	amortization
	expense
Fiscal year	(In thousands)
2019	$	926
2020		926
2021		926
2022		926
2023		613
2024 and thereafter		–
	$	4,317

Commitments and contingencies

12 Months Ended

Feb. 02, 2019

Commitments and contingencies

Commitments and contingencies

8. Commitments and contingencies

Leases – The Company leases retail stores, distribution centers, corporate offices, and certain equipment under operating leases with various expiration dates through 2032. Store leases generally have initial lease terms of 10 years and include renewal options under substantially the same terms and conditions as the original leases. Total rent expense under operating leases was $262,275, $241,559, and $202,942 in fiscal 2018, 2017 and 2016, respectively. As of February 2, 2019, future minimum lease payments under operating leases for the non-cancellable period are as follows:


	Operating
	Leases
Fiscal year	(In thousands)
2019	$	334,508
2020		334,238
2021		318,041
2022		294,412
2023		250,876
2024 and thereafter		753,337
Total minimum lease payments	$	2,285,412

Included in the operating lease schedule above is $219,897 of minimum lease payments for stores that are expected to open in future periods.

Contractual obligations – As of February 2, 2019, the Company had obligations of $11,175 related to commitments made to a third party for products and services for a new fast fulfillment center opening in fiscal 2020. Payments under this commitment were $1,792 in fiscal 2018. In addition, the Company has entered into various non-cancelable advertising and other goods and service contracts. A majority of these agreements expire over one year and the obligations under these agreements were $18,033 as of February 2, 2019.

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

Accrued liabilities

12 Months Ended

Feb. 02, 2019

Accrued liabilities

Accrued liabilities

9. Accrued liabilities

Accrued liabilities consist of the following:


	February 2,		February 3,
(In thousands)	2019		2018
Accrued payroll, bonus, and employee benefits	$	96,020	$	82,593
Accrued taxes		32,085		28,306
Other accrued liabilities		92,561		78,272
Accrued liabilities	$	220,666	$	189,171

Income Taxes

12 Months Ended

Feb. 02, 2019

Income Taxes

Income Taxes

10. Income taxes

The provision for income taxes consists of the following:


	Fiscal		Fiscal		Fiscal
(In thousands)	2018		2017		2016
Current:
Federal	$	137,255	$	230,006	$	194,199
State		29,247		28,714		24,835
Total current		166,502		258,720		219,034
Deferred:
Federal		29,374		(26,256)		24,480
State		4,706		(839)		2,440
Total deferred		34,080		(27,095)		26,920
Provision for income taxes	$	200,582	$	231,625	$	245,954

A reconciliation of the federal statutory rate to the Company’s effective tax rate is as follows:


	Fiscal		Fiscal		Fiscal
	2018		2017		2016
Federal statutory rate	21.0	%	33.7	%	35.0	%
State effective rate, net of federal tax benefit	3.1	%	2.4	%	2.8	%
Re-measurement of deferred tax liabilities	0.0	%	(4.9)	%	0.0	%
Excess deduction of stock compensation	(0.6)	%	(1.2)	%	0.0	%
Other	(0.2)	%	(0.6)	%	(0.3)	%
Effective tax rate	23.3	%	29.4	%	37.5	%

At February 3, 2018, the Company recorded a provisional tax expense related to the impacts of the Tax Cuts and Jobs Act (Tax Reform). The SEC issued guidance on December 22, 2017 under Staff Accounting Bulletin No. 118 (“SAB 118”) which allowed recording a provisional tax expense using a measurement period, not to exceed more than one year from the enactment date. The Company’s accounting for the impacts of the Tax Reform is complete and the Company has not recorded any material adjustments to the provisional amounts under SAB 118.

Significant components of the Company’s deferred tax assets and liabilities are as follows:


	February 2,		February 3,
(In thousands)	2019		2018
Deferred tax assets:
Reserves not currently deductible	$	30,669	$	23,789
Employee benefits		18,491		15,273
Credit carryforwards		237		343
Accrued liabilities		34,391		14,625
Inventory valuation		4,107		847
NOL carryforwards		413		—
Total deferred tax assets		88,308		54,877
Deferred tax liabilities:
Property and equipment		69,265		54,210
Deferred rent obligation		60,525		49,518
Prepaid expenses		39,915		10,552
Intangibles		1,018		—
Receivables not currently includable		1,449		—
Total deferred tax liabilities		172,172		114,280
Net deferred tax liability	$	(83,864)	$	(59,403)

At February 2, 2019, the Company had $237 of credit carryforwards for state income tax purposes that expire between 2023 and 2028. The Company also had $1,114 of federal and $1,136 of state net operating loss (NOL) carryforwards that expire by 2035 and $368 of federal and $345 of state NOL carryforwards that do not expire.

The Company accounts for uncertainty in income taxes in accordance with the ASC 740-10 rules for income taxes. The reserve for uncertain tax positions was $3,844 and $3,565 at February 2, 2019 and February 3, 2018, respectively. The balance is the Company’s best estimate of the potential liability for uncertain tax positions. A reconciliation of the Company’s unrecognized tax benefits, excluding interest and penalties, is as follows:


	February 2,		February 3,
(In thousands)	2019		2018
Balance at beginning of the period	$	3,565	$	3,305
Increase due to a prior year tax position		1,008		1,064
Decrease due to a prior period position		(729)		(804)
Balance at the end of the period	$	3,844	$	3,565

The Company acknowledges that the amount of unrecognized tax benefits may change in the next twelve months. However, it does not expect the change to have a significant impact on its consolidated financial statements. Income tax-related interest and penalties were insignificant for fiscal 2018 and 2017.

The Company files tax returns in the U.S. federal and state jurisdictions. The Company is no longer subject to U.S. federal examinations by the Internal Revenue Service for years before 2017 and is no longer subject to examinations by state authorities before 2014.

Notes payable	12 Months Ended
Notes payable	Feb. 02, 2019
Notes payable
Notes payable	11. Notes payable On August 23, 2017, the Company entered into a Second Amended and Restated Loan Agreement (the Loan Agreement) with Wells Fargo Bank, National Association, as Administrative Agent, Collateral Agent and a Lender thereunder, Wells Fargo Bank, National Association and JPMorgan Chase Bank, N.A., as Lead Arrangers and Bookrunners, JPMorgan Chase Bank, N.A., as Syndication Agent and a Lender, PNC Bank, National Association, as Documentation Agent and a Lender, and the other lenders party thereto. The Loan Agreement matures on 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 receivables 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 Agreement contains a requirement to maintain a fixed charge coverage ratio of not less than 1.0 to 1.0 during such periods when availability under the Loan Agreement falls below a specified threshold. Substantially all of the Company’s assets are pledged as collateral for outstanding borrowings under the Loan Agreement. Outstanding borrowings 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. As of February 2, 2019 and February 3, 2018, 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

12 Months Ended

Feb. 02, 2019

Fair value measurements

Fair value measurements

12. 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 February 2, 2019 and February 3, 2018, the Company held financial liabilities included in other long-term liabilities on the consolidated balance sheets of $19,615 and $15,942, 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.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Investments	12 Months Ended
Investments	Feb. 02, 2019
Investments
Investments	13. Investments The Company did not have any short-term investments as of February 2, 2019. The Company’s short-term investments as of February 3, 2018 consisted of $120,000 in certificates of deposit. Short-term investments are carried at cost, which approximates fair value and are recorded in the consolidated balance sheets in short-term investments.

Share-based awards

12 Months Ended

Feb. 02, 2019

Share-based awards

Share-based awards

14. Share-based awards

Equity incentive plans

The Company has had a number of equity incentive plans over the years. The plans were adopted in order to attract and retain the best available personnel for positions of substantial authority and to provide additional incentive to employees and directors to promote the success of the Company’s business. Incentive compensation was awarded under the Amended and Restated Restricted Stock Option Plan until April 2002 and under the 2002 Equity Incentive Plan through July 2007, at which time the 2007 Incentive Award Plan was adopted. All of the plans generally provided for the grant of incentive stock options, non-qualified stock options, restricted stock, restricted stock units, stock appreciation rights, and other types of awards to employees, consultants, and directors. Unless provided otherwise by the administrator of the plan, options vested over four years at the rate of 25% per year from the date of grant and most must be exercised within ten years. Options were granted with the exercise price equal to the fair value of the underlying stock on the date of grant.

Amended and restated 2011 incentive award plan

In June 2016, the Company adopted the Amended and Restated 2011 Incentive Award Plan (the 2011 Plan). The 2011 Plan provides for the grant of incentive stock options, non-qualified stock options, restricted stock, restricted stock units, stock appreciation rights, performance awards, dividend equivalent rights, stock payments, deferred stock, and cash-based awards to employees, consultants, and directors. Following its original adoption in June 2011, awards are only being made under the 2011 Plan, and no further awards will be made under any prior plan. As of February 2, 2019, the 2011 Plan reserves for the issuance upon grant or exercise of awards up to 3,336 shares of the Company’s common stock.

The following table presents information related to the Company’s 2011 Incentive award plan:


	Fiscal		Fiscal		Fiscal
2011 Incentive award plan (in thousands)	2018		2017		2016
Compensation expense
Common stock options	$	8,590	$	8,993	$	7,983
Restricted stock units		12,077		9,507		7,295
Performance-based restricted stock units		6,822		5,899		4,062
Total stock compensation expense	$	27,489	$	24,399	$	19,340

Cash received from stock option exercises	$	13,121	$	16,190	$	16,293
Income tax benefit	$	6,135	$	10,024	$	6,764
Tax benefit realized	$	6,135	$	10,024	$	15,868

Common stock options

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 basis over the requisite service period for awards expected to vest. The Company estimated the grant date fair value of stock options using a Black-Scholes valuation model using the following weighted-average assumptions:



	Fiscal	Fiscal	Fiscal
	2018	2017	2016
Volatility rate	29.0%	30.9%	35.0%
Average risk-free interest rate	2.4%	1.6%	1.2%
Average expected life (in years)	3.4	3.5	3.5
Dividend yield	None	None	None

The expected volatility is based on the historical volatility of the Company’s common stock. The risk-free interest rate is based on the United States Treasury yield curve in effect on the date of grant for the respective expected life of the option. The expected life represents the time the options granted are expected to be outstanding. The expected life of options granted is derived from historical data on Ulta Beauty stock option exercises. Forfeitures of options are estimated at the grant date based on historical rates of the Company’s stock option activity and reduce the compensation expense recognized. The Company does not currently pay a regular dividend.

The following table presents information related to the Company’s common stock options:


Common stock options	Fiscal		Fiscal		Fiscal
(in thousands, except weighted-average grant date fair value)	2018		2017		2016
Weighted-average grant date fair value	$	50.10	$	69.61	$	53.02
Fair value of options vested	$	10,042	$	5,656	$	5,932
Intrinsic value of options exercised	$	25,902	$	29,449	$	27,468

At February 2, 2019, there was approximately $17,311 of unrecognized compensation expense related to unvested stock options. The unrecognized compensation expense is expected to be recognized over a weighted-average period of approximately two and a half years.

A summary of the status of the Company’s stock option activity is presented in the following table (shares in thousands):


	Fiscal 2018			Fiscal 2017			Fiscal 2016
			Weighted-			Weighted-			Weighted-
	Number of		average	Number of		average	Number of		average
	options		exercise price	options		exercise price	options		exercise price
Common stock options outstanding
Beginning of year	766	$	147.76	830	$	120.78	939	$	104.58
Granted	163		204.27	106		279.76	110		193.64
Exercised	(166)		78.81	(166)		97.44	(194)		83.88
Forfeited	(8)		260.83	(4)		120.71	(25)		118.97
End of year	755	$	174.34	766	$	147.76	830	$	120.78
Exercisable at end of year	296	$	134.27	261	$	81.72	280	$	69.69
Vested and Expected to vest	718	$	173.02	725	$	145.86	786	$	119.32

The following table presents information related to options outstanding and options exercisable at February 2, 2019, under the Company’s stock option plans based on ranges of exercise prices (shares in thousands):


	Options outstanding				Options exercisable
		Weighted-				Weighted-
		average				average
		remaining		Weighted-		remaining		Weighted-
	Number of	contractual life		average	Number of	contractual life		average
Range of Exercise Prices	options	(years)		exercise price	options	(years)		exercise price
$22.86 – $57.42	43	2	$	41.06	43	2	$	41.06
$69.96 – $96.81	47	4		83.71	47	4		83.71
$97.89 – $125.23	60	5		104.53	60	5		104.53
$127.15 – $164.06	245	7		161.56	76	7		159.15
$164.61 – $204.27	255	8		199.24	43	7		190.22
$210.72 – $281.53	105	8		278.47	27	8		277.84
$22.86 – $281.53	755	7	$	174.34	296	5	$	134.27

The aggregate intrinsic value of outstanding and exercisable options as of February 2, 2019 was $88,307 and $46,503, respectively. The last reported sale price of our common stock on the NASDAQ Global Select Market on February 2, 2019 was $291.36 per share.

Restricted stock units

The Company issues restricted stock units to certain employees and its Board of Directors. Employee grants will generally cliff vest after three years and director grants will cliff vest within one year. The grant date fair value of restricted stock units is based on the closing market price of shares of the Company’s common stock on the date of grant. Restricted stock units are expensed on a straight-line basis over the requisite service period. Forfeitures of restricted stock units are estimated at the grant date based on historical rates of the Company’s stock award activity and reduce the compensation expense recognized. At February 2, 2019, unrecognized compensation cost related to restricted stock units was $19,370. The unrecognized compensation expense is expected to be recognized over a weighted-average period of approximately one and a half years.

A summary of the status of the Company’s restricted stock units activity is presented in the following table (shares in thousands):


	Fiscal 2018			Fiscal 2017			Fiscal 2016
		Weighted-			Weighted-			Weighted-
	Number of	average grant		Number of	average grant		Number of	average grant
	units	date fair value		units	date fair value		units	date fair value
Restricted stock units outstanding
Beginning of year	134	$	207.70	142	$	154.71	144	$	116.42
Granted	97		208.82	47		278.48	55		203.40
Vested	(52)		164.35	(46)		117.61	(46)		98.06
Forfeited	(11)		227.44	(9)		201.51	(11)		138.25
End of year	168	$	220.68	134	$	207.70	142	$	154.71
Expected to vest	154	$	220.68	123	$	207.70	131	$	154.71

Performance-based restricted stock units

The Company issues performance-based restricted stock units annually to certain employees. These awards will cliff vest after three years based upon achievement of pre-established goals at the end of the second year of the term. Consistent with restricted stock units, the grant date fair value of performance-based restricted stock units is based on the closing market price of shares of the Company’s common stock on the date of grant. Performance-based restricted stock units are expensed on a straight-line basis over the requisite service period, based on the probability of achieving the performance goal, with changes in expectations recognized as an adjustment to earnings in the period of the change. If the performance goal is not met, no compensation cost is recognized and any previously recognized compensation cost is reversed. Forfeitures of performance-based restricted stock units are estimated at the grant date based on historical rates of the Company’s stock award activity and reduce the compensation expense recognized. At February 2, 2019, unrecognized compensation cost related to performance-based restricted stock units was $9,182. The unrecognized compensation expense is expected to be recognized over a weighted-average period of approximately one year.

A summary of the status of the Company’s performance-based restricted stock unit activity is presented in the following table (shares in thousands):


	Fiscal 2018			Fiscal 2017			Fiscal 2016
		Weighted-			Weighted-			Weighted-
	Number of	average		Number of	average		Number of	average
	units	grant date		units	grant date		units	grant date
Performance-based restricted stock units outstanding
Beginning of year	78	$	196.81	41	$	173.47	20	$	151.20
Granted	33		204.27	21		281.53	24		191.76
Change in performance award payout	22		191.76	19		151.20	–		–
Vested	(36)		151.20	–		–	–		–
Forfeited	(3)		224.49	(3)		186.90	(3)		167.71
End of year	94	$	214.64	78	$	196.81	41	$	173.47
Expected to vest	87	$	241.64	72	$	196.81	38	$	173.47

The number of performance-based restricted stock units granted is based on achieving the targeted performance goals as defined in the performance-based restricted stock unit agreements. As of February 2, 2019, the maximum number of units that could vest under the provisions of the agreements was 146.

Net income per common share

12 Months Ended

Feb. 02, 2019

Net income per common share

Net income per common share

15. Net income per common share

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


	Fiscal year ended
	February 2,		February 3,		January 28,
(In thousands, except per share data)	2019		2018		2017
Numerator for diluted net income per share – net income	$	658,559	$	555,234	$	409,760

Denominator for basic net income per share – weighted-average common shares		59,864		61,556		62,519
Dilutive effect of stock options and non-vested stock		317		419		332
Denominator for diluted net income per share		60,181		61,975		62,851

Net income per common share:
Basic	$	11.00	$	9.02	$	6.55
Diluted	$	10.94	$	8.96	$	6.52

The denominator for diluted net income per common share for fiscal years 2018, 2017 and 2016 excludes 302, 167, and 142 employee stock options and restricted stock units, respectively, due to their anti-dilutive effects. Outstanding performance-based restricted stock units are included in the computation of dilutive shares only to the extent that the underlying performance conditions are satisfied prior to the end of the reporting period or would be considered satisfied if the end of the reporting period were the end of the related contingency period and the results would be dilutive under the treasury stock method.

Employee benefit plans	12 Months Ended
Employee benefit plans	Feb. 02, 2019
Employee benefit plans
Employee benefit plans	16. Employee benefit plans The Company provides a 401(k) retirement plan covering all employees who qualify as to age and length of service. The plan is funded through employee contributions and a Company match. In fiscal 2018, 2017 and 2016, the Company match was 100% of the first 3.0% of eligible compensation. Starting in January 2019, the Company added an additional 50% match for the next 2% of eligible compensation. The liability for the Company match included in accrued liabilities in the consolidated balance sheets was $9,617 and $8,139 as of February 2, 2019 and February 3, 2018, respectively. Total expense recorded under this plan is included in SG&A expenses in the consolidated statements of income and was $10,029, $7,570, and $5,852 during fiscal 2018, 2017, and 2016, respectively. The Company also has a non-qualified deferred compensation plan for highly compensated employees whose contributions are limited under qualified defined contribution plans. The plan is funded through employee contributions and a Company match. In fiscal 2018, 2017 and 2016, the Company match was 100% of the first 3.0% of salary. The liability for the Company match included in accrued liabilities in the consolidated balance sheets was $1,217 and $895 as of February 2, 2019 and February 3, 2018, respectively. Amounts contributed and deferred under the plan are credited or charged with the performance of investment options offered under the plan as elected by the participants. In the event of bankruptcy, the assets of this plan are available to satisfy the claims of general creditors. The liability for compensation deferred under the Company’s plan included in other long-term liabilities in the consolidated balance sheets was $19,615 and $15,942 as of February 2, 2019 and February 3, 2018, respectively. The Company manages the risk of changes in the fair value of the liability for deferred compensation by electing to match its liability under the plan with investment vehicles that offset a substantial portion of its exposure. The cash value of the investment vehicles included in deferred compensation plan assets was $20,511 and $16,827 as of February 2, 2019 and February 3, 2018, respectively. Total expense recorded under this plan is included in SG&A expenses in the consolidated statements of income and was insignificant during fiscal 2018, 2017, and 2016.

Selected quarterly financial data (unaudited)

12 Months Ended

Feb. 02, 2019

Selected quarterly financial data (unaudited)

Selected quarterly financial data (unaudited)

17. Selected quarterly financial data (unaudited)

The following tables set forth the Company’s unaudited quarterly results of operations for each of the quarters in fiscal 2018 and fiscal 2017. The Company’s quarterly periods are the 13 weeks (14 weeks in fourth quarter fiscal 2017) ending on the Saturday closest to April 30, July 31, October 31, and January 31.


	Fiscal 2018
(In thousands, except per share data)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Net sales	$	1,543,667	$	1,488,221	$	1,560,011	$	2,124,716
Cost of sales		982,954		952,760		987,733		1,383,857
Gross profit		560,713		535,461		572,278		740,859

Selling, general and administrative expenses		345,624		337,142		395,453		457,245
Pre-opening expenses		5,247		4,504		7,612		2,404
Operating income		209,842		193,815		169,213		281,210
Interest income, net		(1,325)		(1,143)		(1,318)		(1,275)
Income before income taxes		211,167		194,958		170,531		282,485
Income tax expense		46,771		46,635		39,365		67,811
Net income	$	164,396	$	148,323	$	131,166	$	214,674

Net income per common share:
Basic	$	2.71	$	2.47	$	2.20	$	3.64
Diluted	$	2.70	$	2.46	$	2.18	$	3.61


	Fiscal 2017
(In thousands, except per share data)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Net sales (1)	$	1,314,879	$	1,289,854	$	1,342,181	$	1,937,592
Cost of sales		838,871		820,528		849,053		1,279,245
Gross profit		476,008		469,326		493,128		658,347

Selling, general and administrative expenses		283,445		283,427		320,729		399,631
Pre-opening expenses		4,158		6,099		9,732		4,297
Operating income		188,405		179,800		162,667		254,419
Interest income, net		(338)		(555)		(316)		(359)
Income before income taxes		188,743		180,355		162,983		254,778
Income tax expense		60,520		66,162		58,338		46,605
Net income (2)	$	128,223	$	114,193	$	104,645	$	208,173

Net income per common share (2):
Basic	$	2.06	$	1.84	$	1.71	$	3.42
Diluted	$	2.05	$	1.83	$	1.70	$	3.40

(1)

Fiscal 2017 includes 53 weeks. Net sales for the 53rd week of fiscal 2017 were approximately $108,756.

(2)

Net income and basic and diluted earnings per share for the fourth quarter of 2017 included a significant tax provision benefit as a result of the impact of Tax Reform.

The sum of the quarterly net income per common share may not equal the annual total due to quarterly changes in the weighted average shares and share equivalents outstanding.

Share repurchase program	12 Months Ended
Share repurchase program	Feb. 02, 2019
Share repurchase program
Share repurchase program	18. Share repurchase program On March 10, 2016, the Company announced that the Board of Directors authorized a share repurchase program (the 2016 Share Repurchase Program) pursuant to which the Company could 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 fiscal 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 could repurchase up to $425,000 of the Company’s common stock. The 2017 Share Repurchase Program authorization revoked the previously authorized but unused amount of $79,863 from the 2016 Share Repurchase Program. The 2017 Share Repurchase Program did not have an expiration date but provided for suspension or discontinuation at any time. On March 15, 2018, the Company announced that the Board of Directors authorized a new share repurchase program (the 2018 Share Repurchase Program) pursuant to which the Company could repurchase up to $625,000 of the Company’s common stock. The 2018 Share Repurchase Program authorization revoked the previously authorized but unused amount of $41,317 from the 2017 Share Repurchase Program. The 2018 Share Repurchase Program did not have an expiration date but provided for suspension or discontinuation at any time. During fiscal 2016, excluding the shares repurchased under the ASR, the Company purchased 634 shares of common stock for $144,275. During fiscal 2017, the Company purchased 1,504 shares of common stock for $367,581. During fiscal 2018, the Company purchased 2,464 shares of common stock for $616,194.

Subsequent event	12 Months Ended
Subsequent event	Feb. 02, 2019
Subsequent event
Subsequent event	19. Subsequent event On March 14, 2019, the Company announced that the Board of Directors authorized a new share repurchase program (the 2019 Share Repurchase Program) pursuant to which the Company may repurchase up to $875,000 of the Company’s common stock. The 2019 Share Repurchase Program authorization revokes the previously authorized but unused amounts from the 2018 Share Repurchase Program. The 2019 Share Repurchase Program does not have an expiration date and may be suspended or discontinued at any time.

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Feb. 02, 2019

Valuation and Qualifying Accounts

Schedule II - Valuation and Qualifying Accounts

Ulta Beauty, Inc.
Schedule II – Valuation and Qualifying Accounts
(In thousands)


	Balance at		Charged to					Balance at
	beginning		costs and					end
Description	of period		expenses		Deductions			of period
Fiscal 2018
Allowance for doubtful accounts	$	1,371	$	573	$	(1,293)	(a)	$	651
Inventory reserve		24,804		47,923		(36,087)			36,640
Fiscal 2017
Allowance for doubtful accounts	$	2,079	$	143	$	(851)	(a)	$	1,371
Inventory reserve		27,639		39,849		(42,684)			24,804
Fiscal 2016
Allowance for doubtful accounts	$	1,112	$	1,709	$	(742)	(a)	$	2,079
Inventory reserve		20,262		46,196		(38,819)			27,639

(a)

Represents write-off of uncollectible accounts

Summary of significant accounting policies (Policies)

12 Months Ended

Feb. 02, 2019

Summary of significant accounting policies

Fiscal year

The Company’s fiscal year is the 52 or 53 weeks ending on the Saturday closest to January 31. The Company’s fiscal years ended February 2, 2019 (fiscal 2018), February 3, 2018 (fiscal 2017), and January 28, 2017 (fiscal 2016) were 52, 53, and 52-week years, respectively.

Consolidation

The Company’s consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts, transactions, and unrealized profit were eliminated in consolidation.

Use of estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the accounting period. Actual results could differ from those estimates.

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation.

Cash and cash equivalents

Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of three months or less from the date of purchase. Cash equivalents also include amounts due from third-party financial institutions for credit card and debit card transactions. These receivables typically settle in five days or less with little or no default risk. Amounts from third-party financial institutions for credit card and debit card transactions were $57,698 and $60,773 as of February 2, 2019 and February 3, 2018, respectively.

Short-term investments

The Company determines the balance sheet classification of its investments at the time of purchase and evaluates the classification at each balance sheet date. Money market funds, certificates of deposit, and time deposits with maturities of greater than three months but no more than twelve months are carried at cost, which approximates fair value and are recorded in the consolidated balance sheets in short-term investments (see Note 13, “Investments”).

Receivables

Receivables consist principally of amounts due from vendors and landlord construction allowances earned but not yet received. These receivables are computed based on provisions of the vendor and lease agreements in place and the Company’s completed performance. The Company does not require collateral on its receivables and does not accrue interest. Credit risk with respect to receivables is limited due to the diversity of vendors and landlords comprising the Company’s vendor base. The Company performs ongoing credit evaluations of its vendors and evaluates the collectability of its receivables based on the length of time the receivable is past due and historical experience.

The receivable for vendor allowances was $97,885 and $78,238 as of February 2, 2019 and February 3, 2018, respectively. The receivable for landlord allowances was $19,746 and $12,729 as of February 2, 2019 and February 3, 2018, respectively. The allowance for doubtful receivables was $651 and $1,371 as of February 2, 2019 and February 3, 2018, respectively.

Merchandise inventories

Merchandise inventories are stated at the lower of cost or market. Cost is determined using the weighted-average cost method and includes costs incurred to purchase and distribute goods. Inventory cost also includes vendor allowances related to co-op advertising, markdowns, and volume discounts. The Company maintains an inventory reserve for lower of cost or market and shrink. The inventory reserve was $36,640 and $24,804 as of February 2, 2019 and February 3, 2018, respectively.

Fair value of financial instruments

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. The Company had no outstanding debt as of February 2, 2019 and February 3, 2018.

Property and equipment

The Company’s property and equipment are stated at cost, net of accumulated depreciation and amortization. Maintenance and repairs are charged to operating expense as incurred. The Company’s assets are depreciated or amortized using the straight-line method over the shorter of their estimated useful lives or the expected lease term as follows:


Equipment and fixtures	3 to 10 years
Leasehold improvements	10 years
Electronic equipment and software	3 to 5 years

The Company capitalizes costs incurred during the application development stage in developing or purchasing internal use software. These costs are amortized over the estimated useful life of the software.

The Company periodically evaluates whether changes have occurred that would require revision of the remaining useful life of equipment and leasehold improvements or render them not recoverable. If such circumstances arise, the Company uses an estimate of the undiscounted sum of expected future operating cash flows during their holding period to determine whether the long-lived assets are impaired. If the aggregate undiscounted cash flows are less than the carrying amount of the assets, the resulting impairment charges to be recorded are calculated based on the excess of the carrying value of the assets over the fair value of such assets. No significant impairment charges were recognized in fiscal 2018, fiscal 2017, or fiscal 2016. Impairment charges are included in selling, general and administrative (SG&A) expenses in the consolidated statements of income.

Goodwill and Other intangible assets

Goodwill

Goodwill represents the excess of cost over the fair value of net assets acquired. The Company reviews the recoverability of goodwill annually during the fourth quarter or more frequently if an event occurs or circumstances change that would indicate that impairment may exist (see Note 6, “Goodwill”).

Other intangible assets

Other definite-lived intangible assets are amortized over their useful lives. The Company reviews the recoverability of long-lived assets whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable (see Note 7, “Other intangible assets”).

Loyalty program

The Company maintains a loyalty program, Ultamate Rewards, which allows members to earn points based on purchases of merchandise or services. Points earned are valid for at least one year. The loyalty program represents a material right to the customer and points may be redeemed on future products and services. The relative standalone selling price of points earned by members is included in deferred revenue on the consolidated balance sheets based on the percentage of points expected to be redeemed. The expected redemption percentage is based on historical redemption patterns and considers current information or trends.

When a guest redeems points or the points expire, the Company recognizes revenue in net sales on the consolidated statements of income.

Prior to fiscal 2018, loyalty program revenue was recorded using the incremental cost method within cost of sales on the consolidated statements of income.

Credit cards

The Company has agreements (the Agreements) with third parties to provide guests with private label credit cards and/or co-branded credit cards (collectively, the Credit Cards). The private label credit card can be used at any store location and online, and the co-branded credit card can be used anywhere the co-branded card is accepted. A third-party financing company is the sole owner of the accounts and underwrites the credit issued under the Credit Card programs. The Company’s performance obligation is to maintain the Ultamate Rewards loyalty program as only guests enrolled in the loyalty program can apply for the Credit Cards. Loyalty members earn points through purchases at Ulta Beauty and anywhere the co-branded credit card is accepted.

The third parties reimburse the Company for certain credit card program costs such as advertising and loyalty points, which help promote the credit card program. The Company recognizes revenue when collectability is reasonably assured, under the assumption the amounts are not constrained and it is probable that a significant revenue reversal will not occur in future periods, which is generally the time at which the actual usage of the Credit Cards or specified transaction occurs.

The Company accounts for the amounts associated with the Agreements as a single contract with the sole commercial objective to maintain the Credit Card programs. As a result, all amounts associated with the Agreements are recognized within net sales on the consolidated statements of income.

Other administrative costs related to the Credit Card programs, including payroll, marketing expenses, and other direct costs, are included in SG&A expenses on the consolidated statements of income.

Deferred rent

Many of the Company’s operating leases contain predetermined fixed increases of the minimum rental rate during the lease term. For these leases, the Company recognizes the related rental expense on a straight-line basis over the expected lease term and records the difference between the amounts charged to expense and the rent paid as deferred rent. The lease term commences on the date the Company takes possession of the leased space.

For most lease agreements, the Company receives construction allowances from landlords for tenant improvements. These leasehold improvements made by the Company are capitalized and amortized over the shorter of the lease term or 10 years. The construction allowances are recorded as deferred rent and amortized on a straight-line basis over the lease term as a reduction of rent expense.

Gift card program

The Company records a contract liability for gift card sales which will be redeemed in the future within deferred revenue on the consolidated balance sheets and recognized in net sales when the gift card is redeemed for product or services. The Company’s gift cards do not expire and do not include service fees that decrease guest balances. The Company has maintained historical data related to gift card transactions sold and redeemed over a significant time frame. The Company recognizes gift card breakage (amounts not expected to be redeemed) to the extent there is no requirement for remitting balances to governmental agencies under unclaimed property laws. Estimated gift card breakage revenue is recognized over time in proportion to actual gift card redemptions. Gift card breakage revenue was $12,446, $7,783, and $5,335 in fiscal 2018, 2017, and 2016, respectively.

Revenue recognition

Revenue is recognized when control of the promised goods or services is transferred to the guest, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

The Company determines revenue recognition through the following steps:

·

Identification of the contract, or contracts, with a guest;

·

Identification of the performance obligations in the contract;

·

Determination of the transaction price;

·

Allocation of the transaction price to the performance obligations in the contract; and

·

Recognition of revenue when, or as, a performance obligation is satisfied.

The Company’s net sales include retail stores and e-commerce merchandise sales as well as salon services and other revenue.

Revenue from merchandise sales at retail stores is recognized at the point of sale, net of estimated returns. Revenue from e-commerce merchandise sales is recognized upon shipment of the merchandise to the guest based on meeting the transfer of control criteria, net of estimated returns. E-commerce revenue amounted to $752,224, $568,736, and $345,342 in fiscal 2018, 2017, and 2016, respectively. Shipping and handling are treated as costs to fulfill the contract, and as a result, any fees received from guests are included in the transaction price allocated to the performance obligation of providing goods with a corresponding amount accrued within cost of sales for amounts paid to applicable carriers. The Company provides refunds for merchandise returns within 60 days from the original purchase date. State sales taxes are presented on a net basis as the Company considers itself a pass-through conduit for collecting and remitting state sales tax. Company coupons and other incentives are recorded as a reduction of net sales.

Salon services revenue is recognized at the time the service is provided to the guest. Salon service revenue was $300,863, $277,361, and $241,105 in fiscal 2018, 2017 and 2016, respectively.

Other revenue sources include the private label credit card and co-branded credit card programs, as well as deferred revenue related to the loyalty program and gift card breakage.

Vendor allowances

The Company receives allowances from vendors in the normal course of business including advertising and markdown allowances, purchase volume discounts and rebates, reimbursement for defective merchandise, and certain selling and display expenses. Substantially all vendor allowances are recorded as a reduction of the vendor’s product cost and are recognized in cost of sales as the product is sold.

Advertising

Advertising expense consists principally of print, digital and social media, and television and radio advertising. The Company expenses the costs related to its advertising in the period the related promotional event occurs. Total advertising costs, exclusive of incentives from vendors and start-up advertising expense, amounted to $294,489, $259,423, and $212,714 in fiscal 2018, 2017 and 2016, respectively. Advertising expense as a percentage of sales was 4.4% in fiscal 2018, 2017 and 2016. Prepaid advertising costs included in prepaid expenses and other current assets on the consolidated balance sheets were $9,384 and $12,811 as of February 2, 2019 and February 3, 2018, respectively.

Pre-opening expenses

Non-capital expenditures incurred prior to the grand opening of a new, remodeled, or relocated store are expensed as incurred.

Cost of sales

Cost of sales includes the cost of merchandise sold, including substantially all vendor allowances, which are treated as a reduction of merchandise costs; distribution costs including labor and related benefits, freight, rent, depreciation and amortization, real estate taxes, utilities, and insurance; shipping and handling costs; retail stores occupancy costs including rent, depreciation and amortization, real estate taxes, utilities, repairs and maintenance, insurance, licenses, and cleaning expenses; salon services payroll and benefits; and shrink and inventory valuation reserves.

Selling, general and administrative expenses

SG&A expenses includes payroll, bonus, and benefit costs for retail and corporate employees; advertising and marketing costs; occupancy costs related to our corporate office facilities; stock-based compensation expense; depreciation and amortization for all assets, except those related to our retail store and distribution operations, which are included in cost of sales; and legal, finance, information systems, and other corporate overhead costs.

Income taxes

Deferred income taxes reflect the net tax effect of temporary differences between the financial statement carrying amounts of assets and liabilities and their tax bases. The amounts reported were derived using the enacted tax rates in effect for the year the differences are expected to reverse.

Income tax benefits related to uncertain tax positions are recognized only when it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that each uncertain tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information. Penalties and interest related to unrecognized tax positions are recorded in income tax expense in the consolidated statements of income.

Share-based compensation

Share-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized on a straight-line basis over the requisite service period for awards expected to vest. The Company recorded stock compensation expense of $27,489, $24,399, and $19,340 in fiscal 2018, 2017, and 2016, respectively (see Note 14, “Share-based awards”).

Insurance expense

The Company has insurance programs with third party insurers for employee health, workers compensation, and general liability, among others, to limit the Company’s liability exposure. The insurance programs are premium based and include retentions, deductibles, and stop loss coverage. Current stop loss coverage per claim is $350 for employee health claims, $100 for general liability claims, and $250 for workers compensation claims. The Company makes collateral and premium payments during the plan year and accrues expenses in the event additional premium is due from the Company based on actual claim results. In fiscal 2018, the Company created UB Insurance, Inc., an Arizona-based wholly owned captive insurance subsidiary of the Company, which charges the operating subsidiaries of the Company premiums to insure certain liability exposures. Pursuant to Arizona insurance regulations, UB Insurance, Inc. maintains certain levels of cash and cash equivalents related to its liability exposures.

Net income per common share

Basic net income per common share is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per common share includes dilutive common stock equivalents, using the treasury stock method (see Note 15, “Net income per common share”).

Recent accounting pronouncements not yet adopted and Recently adopted accounting pronouncements

Recent accounting pronouncements not yet adopted

Leases

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016‑02, Leases (Topic 842). The guidance in ASU 2016-02 and subsequently issued amendments requires lessees to capitalize virtually all leases with terms of more than twelve months on the balance sheet as a right-of-use asset and recognize an associated 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 or operating leases and their classification impacts the recognition of expense in the income statement. Entities are allowed to apply the modified retrospective approach (1) retrospectively to each comparative period presented or (2) retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment. ASU 2016‑02 is effective for public companies for interim and annual reporting periods beginning after December 15, 2018.

The Company will adopt the new standard on February 3, 2019 using the modified retrospective approach. Therefore, upon adoption, the Company will recognize and measure leases without revising comparative period information or disclosures.

The Company formed a cross-functional project team to assess the impact of the standard on the consolidated financial statements, which included updating the lease software and identifying changes to processes and controls. The Company plans to implement the transition package of three practical expedients permitted within the standard, which among other things, allows for the carryforward of historical lease classifications. The Company will make an accounting policy election to keep leases with terms of twelve months or less off the balance sheet and result in recognizing those lease payments on a straight-line basis over the lease term.

As a result of adopting ASU 2016‑02, the Company estimates it will record lease liabilities of approximately $1,900,000 with a corresponding amount for the right-of-use assets, which will also be adjusted by reclassifications of existing assets and liabilities primarily related to deferred rent. The adoption of this new standard is not expected to have a material impact on the Company’s consolidated results of operations or cash flows.

Intangibles – Goodwill and Other-Internal-Use Software

In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customers Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which clarifies and aligns the accounting for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019 and should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. The adoption of ASU 2018-15 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

Revenue Recognition from Contracts with Customers

In May 2014, the FASB issued ASU 2014‑09, Revenue from Contracts with Customers (ASU 2014‑09), issued as a new Topic, Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition (ASC 605). The guidance in ASU 2014-09 and subsequently issued amendments outlines a comprehensive model for all entities to use in accounting for revenue arising from contracts with customers as well as required disclosures. Under the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration, which the entity expects to receive in exchange for those goods or services. The new standard requires additional disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers including significant judgments and changes in judgments.

The Company adopted the new revenue standard effective February 4, 2018 using the modified retrospective transition method applied to all contracts with the cumulative effect recorded to the opening balance of retained earnings as of the date of adoption. The comparative information has not been restated and continues to be reported under accounting standards in effect for those periods. The adoption of the new revenue standard did not have a material impact on the Company’s consolidated financial position, results of operations, or cash flows. The Company expects the impact of the adoption of the new revenue standard will be immaterial to net income on an ongoing basis. See Note 4, “Revenue”, for further details.

Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies how all entities assess goodwill for impairment by eliminating Step 2 from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, except that the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019 and should be applied prospectively. Early adoption is permitted. The Company early adopted the new guidance, prospectively, in the fourth quarter of fiscal 2018, and its adoption had no material impact on the Company’s consolidated financial position, results of operation, or cash flows.

Summary of significant accounting policies (Tables)

12 Months Ended

Feb. 02, 2019

Summary of significant accounting policies

Schedule of estimated useful lives or expected lease term of property and equipment


Equipment and fixtures	3 to 10 years
Leasehold improvements	10 years
Electronic equipment and software	3 to 5 years

Revenue (Tables)

12 Months Ended

Feb. 02, 2019

Revenue

Summary of changes made to the recognition timing or classification of revenues and expenses under ASC 606


Description	Policy under ASC 605	Policy under ASC 606
Credit card program	Recognized amounts earned under the private label credit card and co-branded credit card programs as a reduction of cost of sales and selling, general and administrative expenses.	Recognize amounts earned under private label credit card and co-branded credit card programs within net sales.
Loyalty program	Recognized revenue under the incremental cost method at the time of purchase by the guest (when points were earned). Recorded a liability for the cost associated with the future performance obligation to the guest.	Recognize revenue under the deferred revenue method by deferring the recognition of the portion of revenue related to the earning of loyalty points to a future period when the guest redeems the points or the points expire.
Gift card breakage	Recognized gift card breakage (amounts not expected to be redeemed) within selling, general and administrative expenses.	Recognize gift card breakage in net sales proportionately as other gift card balances are redeemed.
Sales refund reserve	Recognized a sales refund reserve as a net liability within accrued liabilities.	Recognize a sales refund reserve on a gross basis as a liability within accrued liabilities and a right of return asset within prepaid expense and other current assets.
E-commerce revenue	Recognized revenue based on delivery of merchandise to the guest.	Recognize revenue upon shipment of merchandise to the guest based on meeting the transfer of control criteria.

Schedule of disaggregated revenue

The following table sets forth the amount of net sales attributable to retail stores, e-commerce, salon services, and other:


	Fiscal year ended
	February 2,			February 3,			January 28,
(Dollars in thousands)	2019			2018			2017
Retail stores	$	5,614,624	84%	$	5,038,409	85%	$	4,268,290	88%
E-commerce		752,224	11%		568,736	10%		345,342	7%
Salon services		300,863	4%		277,361	5%		241,105	5%
Other		48,904	1%		-	0%		-	0%
Total	$	6,716,615	100%	$	5,884,506	100%	$	4,854,737	100%

The following table sets forth the approximate percentage of net sales by primary category:


	Fiscal year ended
	February 2,	February 3,	January 28,
	2019	2018	2017
Cosmetics	51%	51%	51%
Skincare, Bath & Fragrance	21%	21%	20%
Haircare Products & Styling Tools	19%	19%	20%
Salon Services	4%	5%	5%
Other (nail products, accessories, and other)	5%	4%	4%
	100%	100%	100%

Summary of changes in deferred revenue

	Fiscal year ended
	February 2, 2019
Beginning balance	$	110,103
Adoption of ASC 606		38,773
Additions to contract liabilities (1)		140,638
Deductions to contract liabilities (2)		(95,929)
Ending balance	$	193,585

(1)

Loyalty points and gift cards issued in the current period but not redeemed or expired.

(2)

Revenue recognized in the current period related to the beginning liability.

Property and equipment (Tables)

12 Months Ended

Feb. 02, 2019

Property and equipment

Schedule of components of property and equipment


	February 2,		February 3,
(In thousands)	2019		2018
Equipment and fixtures	$	994,668	$	834,931
Leasehold improvements		785,276		705,943
Electronic equipment and software		544,618		485,368
Construction-in-progress		50,574		122,419
		2,375,136		2,148,661
Less: accumulated depreciation and amortization		(1,149,107)		(959,208)
Property and equipment, net	$	1,226,029	$	1,189,453

Goodwill (Tables)

12 Months Ended

Feb. 02, 2019

Goodwill

Schedule of changes in the carrying amounts of goodwill


(In thousands)
Balance as of February 3, 2018	$	-
Acquisitions		10,870
Balance as of February 2, 2019	$	10,870

Other intangible assets (Tables)

12 Months Ended

Feb. 02, 2019

Other intangible assets

Schedule of other intangible assets subject to amortization


		February 2, 2019
	Weighted-average	Gross
	remaining useful life in	carrying		Accumulated
(In thousands)	years	value		amortization		Net
Developed technology	4.7	$	4,631	$	(314)	$	4,317

Schedule of estimated amortization expense related to intangible assets


	Estimated
	amortization
	expense
Fiscal year	(In thousands)
2019	$	926
2020		926
2021		926
2022		926
2023		613
2024 and thereafter		–
	$	4,317

Commitments and contingencies (Tables)

12 Months Ended

Feb. 02, 2019

Commitments and contingencies

Schedule of future minimum lease payments under operating leases

As of February 2, 2019, future minimum lease payments under operating leases for the non-cancellable period are as follows:


	Operating
	Leases
Fiscal year	(In thousands)
2019	$	334,508
2020		334,238
2021		318,041
2022		294,412
2023		250,876
2024 and thereafter		753,337
Total minimum lease payments	$	2,285,412

Accrued liabilities (Tables)

12 Months Ended

Feb. 02, 2019

Accrued liabilities

Schedule of accrued liabilities


	February 2,		February 3,
(In thousands)	2019		2018
Accrued payroll, bonus, and employee benefits	$	96,020	$	82,593
Accrued taxes		32,085		28,306
Other accrued liabilities		92,561		78,272
Accrued liabilities	$	220,666	$	189,171

Income taxes (Tables)

12 Months Ended

Feb. 02, 2019

Income Taxes

Schedule of provision for income taxes


	Fiscal		Fiscal		Fiscal
(In thousands)	2018		2017		2016
Current:
Federal	$	137,255	$	230,006	$	194,199
State		29,247		28,714		24,835
Total current		166,502		258,720		219,034
Deferred:
Federal		29,374		(26,256)		24,480
State		4,706		(839)		2,440
Total deferred		34,080		(27,095)		26,920
Provision for income taxes	$	200,582	$	231,625	$	245,954

Schedule of reconciliation of federal statutory rate to effective tax rate


	Fiscal		Fiscal		Fiscal
	2018		2017		2016
Federal statutory rate	21.0	%	33.7	%	35.0	%
State effective rate, net of federal tax benefit	3.1	%	2.4	%	2.8	%
Re-measurement of deferred tax liabilities	0.0	%	(4.9)	%	0.0	%
Excess deduction of stock compensation	(0.6)	%	(1.2)	%	0.0	%
Other	(0.2)	%	(0.6)	%	(0.3)	%
Effective tax rate	23.3	%	29.4	%	37.5	%

Schedule of components of deferred tax assets and liabilities


	February 2,		February 3,
(In thousands)	2019		2018
Deferred tax assets:
Reserves not currently deductible	$	30,669	$	23,789
Employee benefits		18,491		15,273
Credit carryforwards		237		343
Accrued liabilities		34,391		14,625
Inventory valuation		4,107		847
NOL carryforwards		413		—
Total deferred tax assets		88,308		54,877
Deferred tax liabilities:
Property and equipment		69,265		54,210
Deferred rent obligation		60,525		49,518
Prepaid expenses		39,915		10,552
Intangibles		1,018		—
Receivables not currently includable		1,449		—
Total deferred tax liabilities		172,172		114,280
Net deferred tax liability	$	(83,864)	$	(59,403)

Schedule of reconciliation of unrecognized tax benefits, excluding interest and penalties


	February 2,		February 3,
(In thousands)	2019		2018
Balance at beginning of the period	$	3,565	$	3,305
Increase due to a prior year tax position		1,008		1,064
Decrease due to a prior period position		(729)		(804)
Balance at the end of the period	$	3,844	$	3,565

Share-based awards (Tables)

12 Months Ended

Feb. 02, 2019

Schedule of information related to the incentive award plan


	Fiscal		Fiscal		Fiscal
2011 Incentive award plan (in thousands)	2018		2017		2016
Compensation expense
Common stock options	$	8,590	$	8,993	$	7,983
Restricted stock units		12,077		9,507		7,295
Performance-based restricted stock units		6,822		5,899		4,062
Total stock compensation expense	$	27,489	$	24,399	$	19,340

Cash received from stock option exercises	$	13,121	$	16,190	$	16,293
Income tax benefit	$	6,135	$	10,024	$	6,764
Tax benefit realized	$	6,135	$	10,024	$	15,868

Schedule of weighted average assumptions to determine grant date fair value of employee stock options



	Fiscal	Fiscal	Fiscal
	2018	2017	2016
Volatility rate	29.0%	30.9%	35.0%
Average risk-free interest rate	2.4%	1.6%	1.2%
Average expected life (in years)	3.4	3.5	3.5
Dividend yield	None	None	None


Common stock options	Fiscal		Fiscal		Fiscal
(in thousands, except weighted-average grant date fair value)	2018		2017		2016
Weighted-average grant date fair value	$	50.10	$	69.61	$	53.02
Fair value of options vested	$	10,042	$	5,656	$	5,932
Intrinsic value of options exercised	$	25,902	$	29,449	$	27,468

Schedule of options outstanding and exercisable based on ranges of exercise prices

The following table presents information related to options outstanding and options exercisable at February 2, 2019, under the Company’s stock option plans based on ranges of exercise prices (shares in thousands):


	Options outstanding				Options exercisable
		Weighted-				Weighted-
		average				average
		remaining		Weighted-		remaining		Weighted-
	Number of	contractual life		average	Number of	contractual life		average
Range of Exercise Prices	options	(years)		exercise price	options	(years)		exercise price
$22.86 – $57.42	43	2	$	41.06	43	2	$	41.06
$69.96 – $96.81	47	4		83.71	47	4		83.71
$97.89 – $125.23	60	5		104.53	60	5		104.53
$127.15 – $164.06	245	7		161.56	76	7		159.15
$164.61 – $204.27	255	8		199.24	43	7		190.22
$210.72 – $281.53	105	8		278.47	27	8		277.84
$22.86 – $281.53	755	7	$	174.34	296	5	$	134.27

Summary of status of performance-based restricted stock unit activity


	Fiscal 2018			Fiscal 2017			Fiscal 2016
		Weighted-			Weighted-			Weighted-
	Number of	average		Number of	average		Number of	average
	units	grant date		units	grant date		units	grant date
Performance-based restricted stock units outstanding
Beginning of year	78	$	196.81	41	$	173.47	20	$	151.20
Granted	33		204.27	21		281.53	24		191.76
Change in performance award payout	22		191.76	19		151.20	–		–
Vested	(36)		151.20	–		–	–		–
Forfeited	(3)		224.49	(3)		186.90	(3)		167.71
End of year	94	$	214.64	78	$	196.81	41	$	173.47
Expected to vest	87	$	241.64	72	$	196.81	38	$	173.47

Stock options


	Fiscal 2018			Fiscal 2017			Fiscal 2016
			Weighted-			Weighted-			Weighted-
	Number of		average	Number of		average	Number of		average
	options		exercise price	options		exercise price	options		exercise price
Common stock options outstanding
Beginning of year	766	$	147.76	830	$	120.78	939	$	104.58
Granted	163		204.27	106		279.76	110		193.64
Exercised	(166)		78.81	(166)		97.44	(194)		83.88
Forfeited	(8)		260.83	(4)		120.71	(25)		118.97
End of year	755	$	174.34	766	$	147.76	830	$	120.78
Exercisable at end of year	296	$	134.27	261	$	81.72	280	$	69.69
Vested and Expected to vest	718	$	173.02	725	$	145.86	786	$	119.32

Restricted stock units


	Fiscal 2018			Fiscal 2017			Fiscal 2016
		Weighted-			Weighted-			Weighted-
	Number of	average grant		Number of	average grant		Number of	average grant
	units	date fair value		units	date fair value		units	date fair value
Restricted stock units outstanding
Beginning of year	134	$	207.70	142	$	154.71	144	$	116.42
Granted	97		208.82	47		278.48	55		203.40
Vested	(52)		164.35	(46)		117.61	(46)		98.06
Forfeited	(11)		227.44	(9)		201.51	(11)		138.25
End of year	168	$	220.68	134	$	207.70	142	$	154.71
Expected to vest	154	$	220.68	123	$	207.70	131	$	154.71

Net income per common share (Tables)

12 Months Ended

Feb. 02, 2019

Net income per common share

Schedule of reconciliation of net income and number of shares of common stock used in computation of net income per basic and diluted share


	Fiscal year ended
	February 2,		February 3,		January 28,
(In thousands, except per share data)	2019		2018		2017
Numerator for diluted net income per share – net income	$	658,559	$	555,234	$	409,760

Denominator for basic net income per share – weighted-average common shares		59,864		61,556		62,519
Dilutive effect of stock options and non-vested stock		317		419		332
Denominator for diluted net income per share		60,181		61,975		62,851

Net income per common share:
Basic	$	11.00	$	9.02	$	6.55
Diluted	$	10.94	$	8.96	$	6.52

Selected quarterly financial data (unaudited) (Tables)

12 Months Ended

Feb. 02, 2019

Selected quarterly financial data (unaudited)

Schedule of unaudited quarterly results of operations

	Fiscal 2018
(In thousands, except per share data)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Net sales	$	1,543,667	$	1,488,221	$	1,560,011	$	2,124,716
Cost of sales		982,954		952,760		987,733		1,383,857
Gross profit		560,713		535,461		572,278		740,859

Selling, general and administrative expenses		345,624		337,142		395,453		457,245
Pre-opening expenses		5,247		4,504		7,612		2,404
Operating income		209,842		193,815		169,213		281,210
Interest income, net		(1,325)		(1,143)		(1,318)		(1,275)
Income before income taxes		211,167		194,958		170,531		282,485
Income tax expense		46,771		46,635		39,365		67,811
Net income	$	164,396	$	148,323	$	131,166	$	214,674

Net income per common share:
Basic	$	2.71	$	2.47	$	2.20	$	3.64
Diluted	$	2.70	$	2.46	$	2.18	$	3.61


	Fiscal 2017
(In thousands, except per share data)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Net sales (1)	$	1,314,879	$	1,289,854	$	1,342,181	$	1,937,592
Cost of sales		838,871		820,528		849,053		1,279,245
Gross profit		476,008		469,326		493,128		658,347

Selling, general and administrative expenses		283,445		283,427		320,729		399,631
Pre-opening expenses		4,158		6,099		9,732		4,297
Operating income		188,405		179,800		162,667		254,419
Interest income, net		(338)		(555)		(316)		(359)
Income before income taxes		188,743		180,355		162,983		254,778
Income tax expense		60,520		66,162		58,338		46,605
Net income (2)	$	128,223	$	114,193	$	104,645	$	208,173

Net income per common share (2):
Basic	$	2.06	$	1.84	$	1.71	$	3.42
Diluted	$	2.05	$	1.83	$	1.70	$	3.40

(1)

Fiscal 2017 includes 53 weeks. Net sales for the 53rd week of fiscal 2017 were approximately $108,756.

(2)

Net income and basic and diluted earnings per share for the fourth quarter of 2017 included a significant tax provision benefit as a result of the impact of Tax Reform.

Business and basis of presentation (Details)	12 Months Ended
Business and basis of presentation (Details)	Feb. 02, 2019 store state segment
Business and basis of presentation
Number of stores operated \| store	1,174
Number of states in which entity operates \| state	50
Number of reportable segments \| segment	1

Summary of significant accounting policies - Fiscal Year (Details)	3 Months Ended								12 Months Ended
	Feb. 02, 2019	Nov. 03, 2018	Aug. 04, 2018	May 05, 2018	Feb. 03, 2018	Oct. 28, 2017	Jul. 29, 2017	Apr. 29, 2017	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Summary of significant accounting policies
Fiscal period	91 days	91 days	91 days	91 days	98 days	91 days	91 days	91 days	364 days	371 days	364 days
Minimum
Summary of significant accounting policies
Fiscal period									364 days
Maximum
Summary of significant accounting policies
Fiscal period									371 days

Summary of significant accounting policies - Receivables, Merchandise Inventories and Outstanding Debt (Details) - USD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018
Receivables
Allowance for doubtful receivables	$ 651	$ 1,371
Cash equivalents
Amounts for credit card and debit card transactions	57,698	60,773
Merchandise inventories
Inventory reserve	36,640	24,804
Debt
Outstanding debt	0	0
Vendor allowances
Receivables
Receivable	97,885	78,238
Landlord allowances
Receivables
Receivable	$ 19,746	$ 12,729

Summary of significant accounting policies - Property and Equipment (Details)	12 Months Ended
	Feb. 02, 2019
Equipment and fixtures \| Minimum
Property and equipment
Estimated useful lives or the expected lease term	3 years
Equipment and fixtures \| Maximum
Property and equipment
Estimated useful lives or the expected lease term	10 years
Leasehold improvements
Property and equipment
Estimated useful lives or the expected lease term	10 years
Electronic equipment and software \| Minimum
Property and equipment
Estimated useful lives or the expected lease term	3 years
Electronic equipment and software \| Maximum
Property and equipment
Estimated useful lives or the expected lease term	5 years

Summary of significant accounting policies - Loyalty Program (Details)	12 Months Ended
	Feb. 02, 2019
Summary of significant accounting policies
Minimum term that loyalty program points are valid	1 year

Summary of significant accounting policies - Deferred Rent (Details)	12 Months Ended
	Feb. 02, 2019
Leasehold improvements
Property and equipment
Estimated useful lives or the expected lease term	10 years

Summary of significant accounting policies – Gift Card Program and Revenue Recognition (Details) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
	Feb. 03, 2018	Feb. 02, 2019	Nov. 03, 2018	Aug. 04, 2018	May 05, 2018	Feb. 03, 2018	Oct. 28, 2017	Jul. 29, 2017	Apr. 29, 2017	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Revenue recognition
Revenues	$ 108,756	$ 2,124,716	$ 1,560,011	$ 1,488,221	$ 1,543,667	$ 1,937,592	$ 1,342,181	$ 1,289,854	$ 1,314,879	$ 6,716,615	$ 5,884,506	$ 4,854,737
Term of refund for product returns										60 days
Gift card breakage
Revenue recognition
Revenues										$ 12,446	7,783	5,335
E-commerce.
Revenue recognition
Revenues										752,224	568,736	345,342
Salon Services
Revenue recognition
Revenues										$ 300,863	$ 277,361	$ 241,105

Summary of significant accounting policies – Advertising (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Summary of significant accounting policies
Total advertising costs	$ 294,489	$ 259,423	$ 212,714
Advertising expense as a percentage of sales	4.40%	4.40%	4.40%
Prepaid advertising costs	$ 9,384	$ 12,811

Summary of significant accounting policies – Share-Based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Summary of significant accounting policies
Stock compensation expense	$ 27,489	$ 24,399	$ 19,340

Summary of significant accounting policies – Insurance Expense (Details) $ in Thousands	12 Months Ended
	Feb. 02, 2019 USD ($)
Summary of significant accounting policies
Stop loss coverage per employee health claim	$ 350
Stop loss coverage per general liability claim	100
Stop loss coverage per workers compensation claim	$ 250

Summary of significant accounting policies - Recent Accounting Pronouncements Not Yet Adopted (Details) $ in Thousands	Feb. 03, 2019 USD ($)
Expected \| Effect of adoption of ASU 2016-02, Leases (Topic 842)
Effect of adoption of ASU 2016-02, Leases (Topic 842)
Operating lease liability	$ 1,900,000

Acquisitions (Details) - Acquisition of technology companies $ in Thousands	12 Months Ended
	Feb. 02, 2019 USD ($) company
Acquisitions
Payments to acquire companies \| $	$ 13,606
Number of companies acquired \| company	2

Revenue - Disaggregated revenue (Details) - USD ($) $ in Thousands			3 Months Ended								12 Months Ended
	Feb. 04, 2018	Feb. 03, 2018	Feb. 02, 2019	Nov. 03, 2018	Aug. 04, 2018	May 05, 2018	Feb. 03, 2018	Oct. 28, 2017	Jul. 29, 2017	Apr. 29, 2017	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Disaggregated revenue
Net sales		$ 108,756	$ 2,124,716	$ 1,560,011	$ 1,488,221	$ 1,543,667	$ 1,937,592	$ 1,342,181	$ 1,289,854	$ 1,314,879	$ 6,716,615	$ 5,884,506	$ 4,854,737
Salon Services
Disaggregated revenue
Net sales											$ 300,863	$ 277,361	$ 241,105
Sales Revenue
Disaggregated revenue
Concentration (as a percent)											100.00%	100.00%	100.00%
Sales Revenue \| Cosmetics
Disaggregated revenue
Concentration (as a percent)											51.00%	51.00%	51.00%
Sales Revenue \| Skincare, Bath and Fragrance
Disaggregated revenue
Concentration (as a percent)											21.00%	21.00%	20.00%
Sales Revenue \| Haircare Products and Styling Tools
Disaggregated revenue
Concentration (as a percent)											19.00%	19.00%	20.00%
Sales Revenue \| Salon Services
Disaggregated revenue
Concentration (as a percent)											4.00%	5.00%	5.00%
Sales Revenue \| Other categories
Disaggregated revenue
Concentration (as a percent)											5.00%	4.00%	4.00%
Accounting Standards Update (ASU) 2014 09, Revenue from Contracts with Customers
Disaggregated revenue
Cumulative effect reduction to opening balance of retained earnings	$ (29,980)
Retail stores
Disaggregated revenue
Net sales											$ 5,614,624	$ 5,038,409	$ 4,268,290
Retail stores \| Sales Revenue
Disaggregated revenue
Concentration (as a percent)											84.00%	85.00%	88.00%
E-commerce
Disaggregated revenue
Net sales											$ 752,224	$ 568,736	$ 345,342
E-commerce \| Sales Revenue
Disaggregated revenue
Concentration (as a percent)											11.00%	10.00%	7.00%
Salon services
Disaggregated revenue
Net sales											$ 300,863	$ 277,361	$ 241,105
Salon services \| Sales Revenue
Disaggregated revenue
Concentration (as a percent)											4.00%	5.00%	5.00%
Other
Disaggregated revenue
Net sales											$ 48,904
Other \| Sales Revenue
Disaggregated revenue
Concentration (as a percent)											1.00%	0.00%	0.00%

Revenue - Deferred revenue (Details) $ in Thousands	12 Months Ended
Revenue - Deferred revenue (Details) $ in Thousands	Feb. 02, 2019 USD ($)
Summary of changes in deferred revenue
Balance at beginning of period	$ 110,103
Adoption of ASC 606	38,773
Additions to contract liabilities	140,638
Deductions to contract liabilities	(95,929)
Balance at end of period	$ 193,585

Property and equipment (Details) - USD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018
Property and equipment
Property and equipment, gross	$ 2,375,136	$ 2,148,661
Less: accumulated depreciation and amortization	(1,149,107)	(959,208)
Property and equipment, net	1,226,029	1,189,453
Equipment and fixtures
Property and equipment
Property and equipment, gross	994,668	834,931
Leasehold improvements
Property and equipment
Property and equipment, gross	785,276	705,943
Electronic equipment and software
Property and equipment
Property and equipment, gross	544,618	485,368
Construction-in-progress
Property and equipment
Property and equipment, gross	$ 50,574	$ 122,419

Goodwill (Details) $ in Thousands	12 Months Ended
Goodwill (Details) $ in Thousands	Feb. 02, 2019 USD ($)
Changes in carrying amounts of goodwill
Acquisitions	$ 10,870
Goodwill at end of period	$ 10,870

Other intangible assets - Subject to amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Other intangible assets
Net	$ 4,317
Amortization expense related to intangible assets	$ 314	$ 0	$ 0
Developed technology
Other intangible assets
Weighted-average remaining useful life	4 years 8 months 12 days
Gross carrying value	$ 4,631
Accumulated amortization	(314)
Net	$ 4,317

Other intangible assets - Estimated amortization expense (Details) $ in Thousands	Feb. 02, 2019 USD ($)
Estimated amortization expense related to intangible assets for the next five years:
2019	$ 926
2020	926
2021	926
2022	926
2023	613
Net	$ 4,317

Commitments and contingencies - Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Leases
Initial store lease term	10 years
Total rent expense under operating leases	$ 262,275	$ 241,559	$ 202,942
Future minimum lease payments under operating leases
2019	334,508
2020	334,238
2021	318,041
2022	294,412
2023	250,876
2024 and thereafter	753,337
Total minimum lease payments	2,285,412
Retail stores opening in future periods
Future minimum lease payments under operating leases
Total minimum lease payments	$ 219,897

Commitments and contingencies - Contractual Obligations (Details) $ in Thousands	12 Months Ended
	Feb. 02, 2019 USD ($)
Purchase commitments for products and services for a new fast fulfillment center
Contractual obligations
Contractual obligations related to commitments	$ 11,175
Payments under commitments	1,792
Advertising and other goods and service contracts
Contractual obligations
Contractual obligations related to commitments	$ 18,033
Agreement term	1 year

Accrued liabilities (Details) - USD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018
Accrued liabilities
Accrued payroll, bonus, and employee benefits	$ 96,020	$ 82,593
Accrued taxes	32,085	28,306
Other accrued liabilities	92,561	78,272
Accrued liabilities	$ 220,666	$ 189,171

Income taxes - Components of Provision (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Feb. 02, 2019	Nov. 03, 2018	Aug. 04, 2018	May 05, 2018	Feb. 03, 2018	Oct. 28, 2017	Jul. 29, 2017	Apr. 29, 2017	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Current:
Federal									$ 137,255	$ 230,006	$ 194,199
State									29,247	28,714	24,835
Total current									166,502	258,720	219,034
Deferred:
Federal									29,374	(26,256)	24,480
State									4,706	(839)	2,440
Total deferred									34,080	(27,095)	26,920
Provision for income taxes	$ 67,811	$ 39,365	$ 46,635	$ 46,771	$ 46,605	$ 58,338	$ 66,162	$ 60,520	$ 200,582	$ 231,625	$ 245,954

Income taxes - Reconciliation of Federal Statutory Rate to Effective Tax Rate (Details)	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Reconciliation of federal statutory rate to effective tax rate
Federal statutory rate (as a percent)	21.00%	33.70%	35.00%
State effective rate, net of federal tax benefit (as a percent)	3.10%	2.40%	2.80%
Re-measurement of deferred tax liabilities (as a percent)	0.00%	(4.90%)	0.00%
Excess deduction of stock compensation (as a percent)	(0.60%)	(1.20%)	(0.00%)
Other (as a percent)	(0.20%)	(0.60%)	(0.30%)
Effective tax rate (as a percent)	23.30%	29.40%	37.50%

Income taxes - Components of Deferred Tax Assets and Liabilities and Credit Carryforwards (Details) - USD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018
Deferred tax assets:
Reserves not currently deductible	$ 30,669	$ 23,789
Employee benefits	18,491	15,273
Credit carryforwards	237	343
Accrued liabilities	34,391	14,625
Inventory valuation	4,107	847
NOL carryforwards	413
Total deferred tax assets	88,308	54,877
Deferred tax liabilities:
Property and equipment	69,265	54,210
Deferred rent obligation	60,525	49,518
Prepaid expenses	39,915	10,552
Intangibles	1,018
Receivables not currently includable	1,449
Total deferred tax liabilities	172,172	114,280
Net deferred tax liability	(83,864)	$ (59,403)
Credit carryforwards
Credit carryforwards for state income tax purposes	237
Federal
Credit carryforwards
Amount of net operating loss carryforwards that expire	1,114
Amount of net operating loss carryforwards that do not expire	368
State
Credit carryforwards
Amount of net operating loss carryforwards that expire	1,136
Amount of net operating loss carryforwards that do not expire	$ 345

Income taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018
Reconciliation of unrecognized tax benefits, excluding interest and penalties
Balance at beginning of the period	$ 3,565	$ 3,305
Increase due to a prior year tax position	1,008	1,064
Decrease due to a prior period position	(729)	(804)
Balance at the end of the period	$ 3,844	$ 3,565

Notes payable (Details)	12 Months Ended
Notes payable (Details)	Feb. 02, 2019 USD ($)	Feb. 03, 2018 USD ($)
Notes payable
Outstanding borrowings under credit facility	$ 0	$ 0
Revolving loans
Notes payable
Outstanding borrowings under credit facility	$ 0	$ 0
Second Amended and Restated Loan Agreement
Notes payable
Unused line fee (as a percent)	0.20%
Second Amended and Restated Loan Agreement \| Minimum
Notes payable
Fixed charge coverage ratio covenant	1.0
Second Amended and Restated Loan Agreement \| London Interbank Offered Rate
Notes payable
Interest rate margin (as a percent)	1.25%
Second Amended and Restated Loan Agreement \| Revolving loans
Notes payable
Maximum borrowing capacity	$ 400,000,000
Contingent increase to revolving facility	50,000,000
Second Amended and Restated Loan Agreement \| Letters of credit
Notes payable
Maximum borrowing capacity	$ 20,000,000

Fair value measurements (Details) - USD ($) $ in Thousands	Feb. 02, 2019	Feb. 03, 2018
Level 2 \| Non-qualified deferred compensation plan
Fair value measurements
Fair value of financial liabilities	$ 19,615	$ 15,942

Investments (Details) $ in Thousands	Feb. 03, 2018 USD ($)
Investments
Short-term investments	$ 120,000
Certificates of deposit
Investments
Short-term investments	$ 120,000

Share-based awards - Share-Based Plans (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Share-based awards
Cash received from stock option exercises	$ 13,121	$ 16,190	$ 16,293
Stock options
Share-based awards
Vesting period	4 years
Vesting per year (as a percent)	25.00%
Award expiration period	10 years
Performance-based restricted stock units
Share-based awards
Vesting period	3 years
Amended and Restated 2011 Incentive Award Plan
Share-based awards
Common stock reserved for issuance upon grant or exercise of awards (in shares)	3,336
Stock compensation expense	$ 27,489	24,399	19,340
Cash received from stock option exercises	13,121	16,190	16,293
Income tax benefit	6,135	10,024	6,764
Tax benefit realized	6,135	10,024	15,868
Amended and Restated 2011 Incentive Award Plan \| Stock options
Share-based awards
Stock compensation expense	8,590	8,993	7,983
Amended and Restated 2011 Incentive Award Plan \| Restricted stock units
Share-based awards
Stock compensation expense	12,077	9,507	7,295
Amended and Restated 2011 Incentive Award Plan \| Performance-based restricted stock units
Share-based awards
Stock compensation expense	$ 6,822	$ 5,899	$ 4,062

Share-based awards - Assumptions to Estimate Fair Value of Stock Options (Details) - Stock options	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Weighted-average assumptions to estimate fair value
Volatility rate (as a percent)	29.00%	30.90%	35.00%
Average risk-free interest rate (as a percent)	2.40%	1.60%	1.20%
Average expected life	3 years 4 months 24 days	3 years 6 months	3 years 6 months
Dividend yield (as a percent)	0.00%	0.00%	0.00%

Share-based awards - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Share-based compensation
Weighted-average grant date fair value (in dollars per share)	$ 50.10	$ 69.61	$ 53.02
Fair value of options vested	$ 10,042	$ 5,656	$ 5,932
Intrinsic value of options exercised	25,902	$ 29,449	$ 27,468
Stock options
Unrecognized compensation expense	$ 17,311
Weighted-average recognition period of unrecognized compensation expense	2 years 6 months
Number of options
Beginning of year (in shares)	766	830	939
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	163	106	110
Exercised (in shares)	(166)	(166)	(194)
Forfeited (in shares)	(8)	(4)	(25)
End of year (in shares)	755	766	830
Exercisable at end of year (in shares)	296	261	280
Vested and Expected to vest (in shares)	718	725	786
Weighted average exercise price
Beginning of year (in dollars per share)	$ 147.76	$ 120.78	$ 104.58
Granted (in dollars per share)	204.27	279.76	193.64
Exercised (in dollars per share)	78.81	97.44	83.88
Forfeited (in dollars per share)	260.83	120.71	118.97
End of year (in dollars per share)	174.34	147.76	120.78
Exercisable at end of year (in dollars per share)	134.27	81.72	69.69
Vested and Expected to vest (in dollars per share)	$ 173.02	$ 145.86	$ 119.32

Share-based awards - Information Related to Stock Options Plans Based on Ranges of Exercise Prices (Details) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Feb. 02, 2019 USD ($) $ / shares shares
Information related to options outstanding and options exercisable based on ranges of exercise prices
Aggregate intrinsic value of outstanding options (in dollars) \| $	$ 88,307
Aggregate intrinsic value of exercisable options (in dollars) \| $	$ 46,503
Sale price of common stock (in dollars per share)	$ 291.36
$22.86 - $281.53
Information related to options outstanding and options exercisable based on ranges of exercise prices
Range of Exercise Prices, lower range limit (in dollars per share)	22.86
Range of Exercise Prices, upper range limit (in dollars per share)	$ 281.53
Options outstanding, Number of options (in shares) \| shares	755
Options outstanding, Weighted-average remaining contractual life	7 years
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 174.34
Options exercisable, Number of options (in shares) \| shares	296
Options exercisable, Weighted-average remaining contractual life	5 years
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 134.27
$22.86 - $57.42
Information related to options outstanding and options exercisable based on ranges of exercise prices
Range of Exercise Prices, lower range limit (in dollars per share)	22.86
Range of Exercise Prices, upper range limit (in dollars per share)	$ 57.42
Options outstanding, Number of options (in shares) \| shares	43
Options outstanding, Weighted-average remaining contractual life	2 years
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 41.06
Options exercisable, Number of options (in shares) \| shares	43
Options exercisable, Weighted-average remaining contractual life	2 years
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 41.06
$69.96 - $96.81
Information related to options outstanding and options exercisable based on ranges of exercise prices
Range of Exercise Prices, lower range limit (in dollars per share)	69.96
Range of Exercise Prices, upper range limit (in dollars per share)	$ 96.81
Options outstanding, Number of options (in shares) \| shares	47
Options outstanding, Weighted-average remaining contractual life	4 years
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 83.71
Options exercisable, Number of options (in shares) \| shares	47
Options exercisable, Weighted-average remaining contractual life	4 years
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 83.71
$97.89 - $125.23
Information related to options outstanding and options exercisable based on ranges of exercise prices
Range of Exercise Prices, lower range limit (in dollars per share)	97.89
Range of Exercise Prices, upper range limit (in dollars per share)	$ 125.23
Options outstanding, Number of options (in shares) \| shares	60
Options outstanding, Weighted-average remaining contractual life	5 years
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 104.53
Options exercisable, Number of options (in shares) \| shares	60
Options exercisable, Weighted-average remaining contractual life	5 years
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 104.53
$127.15 - $164.06
Information related to options outstanding and options exercisable based on ranges of exercise prices
Range of Exercise Prices, lower range limit (in dollars per share)	127.15
Range of Exercise Prices, upper range limit (in dollars per share)	$ 164.06
Options outstanding, Number of options (in shares) \| shares	245
Options outstanding, Weighted-average remaining contractual life	7 years
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 161.56
Options exercisable, Number of options (in shares) \| shares	76
Options exercisable, Weighted-average remaining contractual life	7 years
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 159.15
$164.61 - $204.27
Information related to options outstanding and options exercisable based on ranges of exercise prices
Range of Exercise Prices, lower range limit (in dollars per share)	164.61
Range of Exercise Prices, upper range limit (in dollars per share)	$ 204.27
Options outstanding, Number of options (in shares) \| shares	255
Options outstanding, Weighted-average remaining contractual life	8 years
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 199.24
Options exercisable, Number of options (in shares) \| shares	43
Options exercisable, Weighted-average remaining contractual life	7 years
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 190.22
$210.72 - $281.53
Information related to options outstanding and options exercisable based on ranges of exercise prices
Range of Exercise Prices, lower range limit (in dollars per share)	210.72
Range of Exercise Prices, upper range limit (in dollars per share)	$ 281.53
Options outstanding, Number of options (in shares) \| shares	105
Options outstanding, Weighted-average remaining contractual life	8 years
Options outstanding, Weighted-average exercise price (in dollars per share)	$ 278.47
Options exercisable, Number of options (in shares) \| shares	27
Options exercisable, Weighted-average remaining contractual life	8 years
Options exercisable, Weighted-average exercise price (in dollars per share)	$ 277.84

Share-based awards - Restricted Stock Units (Details) - Restricted stock units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Restricted stock units
Unrecognized compensation cost	$ 19,370
Weighted-average recognition period of unrecognized compensation expense	1 year 6 months
Number of shares
Beginning of year (in shares)	134	142	144
Granted (in shares)	97	47	55
Vested (in shares)	(52)	(46)	(46)
Forfeited (in shares)	(11)	(9)	(11)
End of year (in shares)	168	134	142
Expected to vest (in shares)	154	123	131
Weighted average grant date fair value
Beginning of year (in dollars per share)	$ 207.70	$ 154.71	$ 116.42
Granted (in dollars per share)	208.82	278.48	203.40
Vested (in dollars per share)	164.35	117.61	98.06
Forfeited (in dollars per share)	227.44	201.51	138.25
End of year (in dollars per share)	220.68	207.70	154.71
Expected to vest (in dollars per share)	$ 220.68	$ 207.70	$ 154.71
Certain employees
Restricted stock units
Vesting period	3 years
Board of Directors
Restricted stock units
Vesting period	1 year

Share-based awards - Performance-based Restricted Stock Units (Details) - Performance-based restricted stock units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Performance-based restricted stock units
Vesting period	3 years
Performance period	2 years
Unrecognized compensation cost	$ 9,182
Weighted-average recognition period of unrecognized compensation expense	1 year
Number of shares
Beginning of year (in shares)	78	41	20
Granted (in shares)	33	21	24
Change in performance award payout (in shares)	22	19
Vested (in shares)	(36)
Forfeited (in shares)	(3)	(3)	(3)
End of year (in shares)	94	78	41
Expected to vest (in shares)	87	72	38
Weighted average grant date fair value
Beginning of year (in dollars per share)	$ 196.81	$ 173.47	$ 151.20
Granted (in dollars per share)	204.27	281.53	191.76
Change in performance award payout (in dollars per share)	191.76	151.20
Vested (in dollars per share)	151.20
Forfeited (in dollars per share)	224.49	186.90	167.71
End of year (in dollars per share)	214.64	196.81	173.47
Expected to vest (in dollars per share)	$ 241.64	$ 196.81	$ 173.47
Maximum
Number of shares
Expected to vest (in shares)	146

Net income per common share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Feb. 02, 2019	Nov. 03, 2018	Aug. 04, 2018	May 05, 2018	Feb. 03, 2018	Oct. 28, 2017	Jul. 29, 2017	Apr. 29, 2017	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Net income per common share
Numerator for diluted net income per share - net income									$ 658,559	$ 555,234	$ 409,760
Denominator for basic net income per share - weighted-average common shares									59,864	61,556	62,519
Dilutive effect of stock options and non-vested stock									317	419	332
Denominator for diluted net income per share									60,181	61,975	62,851
Net income per common share:
Basic	$ 3.64	$ 2.20	$ 2.47	$ 2.71	$ 3.42	$ 1.71	$ 1.84	$ 2.06	$ 11.00	$ 9.02	$ 6.55
Diluted	$ 3.61	$ 2.18	$ 2.46	$ 2.70	$ 3.40	$ 1.70	$ 1.83	$ 2.05	$ 10.94	$ 8.96	$ 6.52

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

Net income per common share - Anti-dilutive Shares (Details) - shares shares in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Net income per common share
Employee stock options and restricted stock units excluded from the computation of net income per common share	302	167	142

Employee benefit plans (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
Employee benefit plans (Details) - USD ($) $ in Thousands	Feb. 02, 2019	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Defined contribution plans
Deferred compensation plan assets	$ 20,511	$ 20,511	$ 16,827
Qualified defined contribution plan
Defined contribution plans
Company match (as a percent)		100.00%	100.00%	100.00%
Eligible employee compensation for company match (as a percent)		3.00%	3.00%	3.00%
Company match on additional employee contributions (as a percent)	50.00%
Eligible additional employee contribution to receive additional company match (as a percent)	2.00%
Liability for Company match	$ 9,617	$ 9,617	$ 8,139
Total expense recorded		$ 10,029	$ 7,570	$ 5,852
Non-qualified deferred compensation plan
Defined contribution plans
Company match (as a percent)		100.00%	100.00%	100.00%
Eligible employee compensation for company match (as a percent)		3.00%	3.00%	3.00%
Liability for Company match	1,217	$ 1,217	$ 895
Deferred compensation liability	19,615	19,615	15,942
Deferred compensation plan assets	$ 20,511	$ 20,511	$ 16,827

Selected quarterly financial data (unaudited) - Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended								12 Months Ended
	Feb. 03, 2018	Feb. 02, 2019	Nov. 03, 2018	Aug. 04, 2018	May 05, 2018	Feb. 03, 2018	Oct. 28, 2017	Jul. 29, 2017	Apr. 29, 2017	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Selected quarterly financial data (unaudited)
Fiscal period		91 days	91 days	91 days	91 days	98 days	91 days	91 days	91 days	364 days	371 days	364 days
Net sales	$ 108,756	$ 2,124,716	$ 1,560,011	$ 1,488,221	$ 1,543,667	$ 1,937,592	$ 1,342,181	$ 1,289,854	$ 1,314,879	$ 6,716,615	$ 5,884,506	$ 4,854,737
Cost of sales		1,383,857	987,733	952,760	982,954	1,279,245	849,053	820,528	838,871	4,307,304	3,787,697	3,107,508
Gross profit		740,859	572,278	535,461	560,713	658,347	493,128	469,326	476,008	2,409,311	2,096,809	1,747,229
Selling, general and administrative expenses		457,245	395,453	337,142	345,624	399,631	320,729	283,427	283,445	1,535,464	1,287,232	1,073,834
Pre-opening expenses		2,404	7,612	4,504	5,247	4,297	9,732	6,099	4,158	19,767	24,286	18,571
Operating income		281,210	169,213	193,815	209,842	254,419	162,667	179,800	188,405	854,080	785,291	654,824
Interest income, net		(1,275)	(1,318)	(1,143)	(1,325)	(359)	(316)	(555)	(338)	(5,061)	(1,568)	(890)
Income before income taxes		282,485	170,531	194,958	211,167	254,778	162,983	180,355	188,743	859,141	786,859	655,714
Income tax expense		67,811	39,365	46,635	46,771	46,605	58,338	66,162	60,520	200,582	231,625	245,954
Net income		$ 214,674	$ 131,166	$ 148,323	$ 164,396	$ 208,173	$ 104,645	$ 114,193	$ 128,223	$ 658,559	$ 555,234	$ 409,760
Net income per common share:
Basic		$ 3.64	$ 2.20	$ 2.47	$ 2.71	$ 3.42	$ 1.71	$ 1.84	$ 2.06	$ 11.00	$ 9.02	$ 6.55
Diluted		$ 3.61	$ 2.18	$ 2.46	$ 2.70	$ 3.40	$ 1.70	$ 1.83	$ 2.05	$ 10.94	$ 8.96	$ 6.52

Share repurchase program (Details) - USD ($) shares in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	May 31, 2016	Apr. 30, 2016	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017	Mar. 15, 2018	Mar. 09, 2017	Mar. 10, 2016
Share repurchase program
Shares repurchased and retired (in shares)			2,464	1,504
Common stock repurchased and retired			$ 616,194,000	$ 367,581,000	$ 344,275,000
Common Stock
Share repurchase program
Shares repurchased and retired (in shares)			2,464	1,504	1,639
Common stock repurchased and retired			$ 25,000	$ 15,000	$ 16,000
2016 Share Repurchase Program
Share repurchase program
Authorized amount of share repurchase program								$ 425,000,000
Remaining authorized amount from earlier share repurchase program							$ 79,863,000
Accelerated Share Repurchase Agreement (ASR)
Share repurchase program
Authorized amount of share repurchase program								200,000,000
Shares repurchased and retired (in shares)	153	852
Common stock repurchased and retired		$ 200,000,000
Percentage of initial shares received to the total shares expected to be received		80.00%
Earlier Share Repurchase Program
Share repurchase program
Remaining authorized amount from earlier share repurchase program								$ 172,386,000
2017 Share Repurchase Program
Share repurchase program
Authorized amount of share repurchase program							$ 425,000,000
Remaining authorized amount from earlier share repurchase program						$ 41,317,000
2018 Share Repurchase Program
Share repurchase program
Authorized amount of share repurchase program						$ 625,000,000
Share repurchase programs, excluding Accelerated Share Repurchase
Share repurchase program
Shares repurchased and retired (in shares)					634
Common stock repurchased and retired					$ 144,275,000

Subsequent event (Details) $ in Thousands	Mar. 14, 2019 USD ($)
Subsequent events \| 2019 Share Repurchase Program
Subsequent event
Authorized amount of share repurchase program	$ 875,000

Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017
Allowance for doubtful accounts
Valuation and Qualifying Accounts
Balance at beginning of period	$ 1,371	$ 2,079	$ 1,112
Charged to costs and expenses	573	143	1,709
Deductions	(1,293)	(851)	(742)
Balance at end of period	651	1,371	2,079
Inventory reserve
Valuation and Qualifying Accounts
Balance at beginning of period	24,804	27,639	20,262
Charged to costs and expenses	47,923	39,849	46,196
Deductions	(36,087)	(42,684)	(38,819)
Balance at end of period	$ 36,640	$ 24,804	$ 27,639