Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	May 02, 2020	May 22, 2020
Document And Entity Information
Entity Registrant Name	ULTA BEAUTY, INC.
Document Quarterly Report	true
Document Transition Report	false
Entity Central Index Key	0001403568
Document Type	10-Q
Document Period End Date	May 02, 2020
Amendment Flag	false
Current Fiscal Year End Date	--01-30
Entity File Number	001-33764
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	38-4022268
Entity Address, Address Line One	1000 Remington Blvd., Suite 120
Entity Address, City or Town	Bolingbrook
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60440
City Area Code	630
Local Phone Number	410-4800
Title of 12(b) Security	Common Stock, par value $0.01 per share
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		56,311,711
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Trading Symbol	ULTA

Consolidated Balance Sheets - USD ($) $ in Thousands	May 02, 2020	Feb. 01, 2020	May 04, 2019
Current assets:
Cash and cash equivalents	$ 1,043,540	$ 392,325	$ 326,831
Short-term investments	110,000	110,000	195,000
Receivables, net	88,691	139,337	110,046
Merchandise inventories, net	1,340,566	1,293,701	1,250,037
Prepaid expenses and other current assets	97,041	103,567	137,173
Prepaid income taxes	48,982	16,387	245
Total current assets	2,728,820	2,055,317	2,019,332
Property and equipment, net	1,148,341	1,205,524	1,205,919
Operating lease assets	1,583,490	1,537,565	1,479,132
Goodwill	10,870	10,870	10,870
Other intangible assets, net	3,159	3,391	4,085
Deferred compensation plan assets	25,388	27,849	23,910
Other long-term assets	30,483	23,356	23,105
Total assets	5,530,551	4,863,872	4,766,353
Current liabilities:
Accounts payable	466,043	414,009	407,345
Accrued liabilities	173,310	246,088	227,156
Deferred revenue	216,330	237,535	182,993
Current operating lease liabilities	240,496	239,629	211,432
Accrued income taxes			16,679
Total current liabilities	1,096,179	1,137,261	1,045,605
Non-current operating lease liabilities	1,748,245	1,698,718	1,654,401
Long-term debt	800,000
Deferred income taxes	95,276	89,367	90,384
Other long-term liabilities	36,892	36,432	34,395
Total liabilities	3,776,592	2,961,778	2,824,785
Commitments and contingencies (Note 6)
Stockholders' equity:
Common stock, $0.01 par value, 400,000 shares authorized; 57,003, 57,285 and 59,262 shares issued; 56,312, 56,609 and 58,587 shares outstanding; at May 2, 2020 (unaudited), February 1, 2020, and May 4, 2019 (unaudited), respectively	570	573	593
Treasury stock-common, at cost	(37,450)	(34,448)	(34,091)
Additional paid-in capital	813,924	807,492	786,753
Retained earnings	976,990	1,128,477	1,188,313
Accumulated other comprehensive loss	(75)
Total stockholders' equity	1,753,959	1,902,094	1,941,568
Total liabilities and stockholders' equity	$ 5,530,551	$ 4,863,872	$ 4,766,353

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	May 02, 2020	Feb. 01, 2020	May 04, 2019
Consolidated Balance Sheets
Common stock, par value	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	400,000	400,000	400,000
Common stock, shares issued	57,003	57,285	59,262
Common stock, shares outstanding	56,312	56,609	58,587

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	May 02, 2020	May 04, 2019
Consolidated Statements of Operations
Net sales	$ 1,173,210	$ 1,743,029
Cost of sales	869,605	1,098,182
Gross profit	303,605	644,847
Selling, general and administrative expenses	380,912	403,133
Impairment charges	19,542
Pre-opening expenses	4,635	4,174
Operating income (loss)	(101,484)	237,540
Interest expense (income), net	1,272	(2,046)
Income (loss) before income taxes	(102,756)	239,586
Income tax expense (benefit)	(24,247)	47,365
Net income (loss)	$ (78,509)	$ 192,221
Net income (loss) per common share:
Basic	$ (1.39)	$ 3.28
Diluted	$ (1.39)	$ 3.26
Weighted average common shares outstanding:
Basic	56,419	58,631
Diluted	56,419	58,993

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	May 02, 2020	May 04, 2019
Consolidated Statements of Comprehensive Income (Loss)
Net income (loss)	$ (78,509)	$ 192,221
Other comprehensive income (loss):
Foreign currency translation adjustments	(75)
Comprehensive income (loss)	$ (78,584)	$ 192,221

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	May 02, 2020	May 04, 2019
Operating activities
Net income (loss)	$ (78,509)	$ 192,221
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	76,626	71,810
Non-cash lease expense	70,863	75,231
Impairment charges	19,542
Deferred income taxes	5,909	6,520
Stock-based compensation expense	6,182	6,030
Loss on disposal of property and equipment	1,521	1,365
Change in operating assets and liabilities:
Receivables	50,646	8,654
Merchandise inventories	(46,865)	(35,708)
Prepaid expenses and other current assets	6,526	(24,317)
Income taxes	(32,595)	33,431
Accounts payable	46,965	3,329
Accrued liabilities	(63,927)	9,971
Deferred revenue	(21,205)	(16,061)
Operating lease liabilities	(68,976)	(67,635)
Other assets and liabilities	2,979	6,837
Net cash provided by (used in) operating activities	(24,318)	271,678
Investing activities
Purchases of short-term investments		(195,000)
Capital expenditures	(41,474)	(71,836)
Purchases of equity investments	(5,386)	(12,736)
Net cash used in investing activities	(46,860)	(279,572)
Financing activities
Proceeds from long-term debt	800,000
Repurchase of common shares	(72,981)	(107,399)
Stock options exercised	250	42,056
Purchase of treasury shares	(3,002)	(9,183)
Debt issuance costs	(1,799)
Net cash provided by (used in) financing activities	722,468	(74,526)
Effect of exchange rate changes on cash and cash equivalents	(75)
Net increase (decrease) in cash and cash equivalents	651,215	(82,420)
Cash and cash equivalents at beginning of period	392,325	409,251
Cash and cash equivalents at end of period	1,043,540	326,831
Supplemental information
Cash paid for interest	1,688	245
Income taxes paid, net of refunds	5,636	2,327
Non-cash capital expenditures	$ 23,119	$ 28,596

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock	Treasury - Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Balance at Feb. 02, 2019	$ 592	$ (24,908)	$ 738,671	$ 1,105,863		$ 1,820,218
Balance (in shares) at Feb. 02, 2019	59,232	(648)
Net income				192,221		192,221
Stock-based compensation			6,030			6,030
Adoption of accounting standards \| ASU 2016-02, Leases (Topic 842)				(2,375)		(2,375)
Stock options exercised and other awards	$ 4		42,052			42,056
Stock options exercised and other awards (in shares)	348
Purchase of treasury shares		$ (9,183)				(9,183)
Purchase of treasury shares (in shares)		(27)
Repurchase of common shares	$ (3)			(107,396)		(107,399)
Repurchase of common shares (in shares)	(318)
Balance at May. 04, 2019	$ 593	$ (34,091)	786,753	1,188,313		$ 1,941,568
Balance (in shares) at May. 04, 2019	59,262	(675)				58,587
Balance at Feb. 01, 2020	$ 573	$ (34,448)	807,492	1,128,477		$ 1,902,094
Balance (in shares) at Feb. 01, 2020	57,285	(676)				56,609
Net income				(78,509)		$ (78,509)
Stock-based compensation			6,182			6,182
Foreign currency translation adjustments					$ (75)	(75)
Stock options exercised and other awards			250			250
Stock options exercised and other awards (in shares)	45
Purchase of treasury shares		$ (3,002)				(3,002)
Purchase of treasury shares (in shares)		(15)
Repurchase of common shares	$ (3)			(72,978)		(72,981)
Repurchase of common shares (in shares)	(327)
Balance at May. 02, 2020	$ 570	$ (37,450)	$ 813,924	$ 976,990	$ (75)	$ 1,753,959
Balance (in shares) at May. 02, 2020	57,003	(691)				56,312

Business and basis of presentation

3 Months Ended

May 02, 2020

Business and basis of presentation

Business and basis of presentation

1.Business and basis of presentation

On January 29, 2017, Ulta Salon, Cosmetics & Fragrance, Inc. implemented a holding company reorganization. Pursuant to the reorganization, Ulta Beauty, Inc., which was incorporated as a Delaware corporation in December 2016, became the successor to Ulta Salon, Cosmetics & Fragrance, Inc., the former publicly-traded company and now a wholly owned subsidiary of Ulta Beauty, Inc. As used in these notes and throughout this Quarterly Report on Form 10-Q, all references to “we,” “us,” “our,” “Ulta Beauty,” or the “Company” refer to Ulta Beauty, Inc. and its consolidated subsidiaries.

The Company was originally founded in 1990 to operate specialty retail stores selling cosmetics, fragrance, haircare and skincare products, and related accessories and services. The stores also feature full-service salons. As of May 2, 2020, the Company operated 1,264 stores across 50 states, as shown in the table below.


	Number of		Number of
Location	stores	Location	stores
Alabama	22	Montana	6
Alaska	3	Nebraska	5
Arizona	30	Nevada	15
Arkansas	10	New Hampshire	7
California	160	New Jersey	39
Colorado	26	New Mexico	7
Connecticut	17	New York	51
Delaware	3	North Carolina	34
Florida	86	North Dakota	3
Georgia	38	Ohio	43
Hawaii	4	Oklahoma	21
Idaho	9	Oregon	17
Illinois	55	Pennsylvania	45
Indiana	24	Rhode Island	3
Iowa	10	South Carolina	20
Kansas	13	South Dakota	3
Kentucky	15	Tennessee	26
Louisiana	19	Texas	115
Maine	3	Utah	14
Maryland	25	Vermont	1
Massachusetts	21	Virginia	29
Michigan	49	Washington	36
Minnesota	18	West Virginia	7
Mississippi	10	Wisconsin	20
Missouri	24	Wyoming	3
		Total	1,264

The accompanying unaudited consolidated financial statements and related notes have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and the U.S. Securities and Exchange Commission’s Article 10, Regulation S-X. These financial statements were prepared on a consolidated basis to include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts, transactions, and unrealized profit were eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, which are of a

normal recurring nature, necessary to fairly state the financial position and results of operations and cash flows for the interim periods presented.

Our operating results for the 13 weeks ended May 2, 2020 may not be indicative of the results that may be expected for the fiscal year ending January 30, 2021 because of the novel coronavirus (COVID-19) pandemic. As a result of the pandemic, the Company modified a number of its business practices, in part due to legislation, executive orders and guidance from government entities and healthcare authorities (including the temporary closing of businesses deemed “non-essential,” shelter in place orders, social distancing and quarantines). The COVID-19 pandemic has had, and will continue to have, a negative impact on our business, financial condition, profitability, cash flows and supply chain, although the full extent is uncertain. As the pandemic continues to rapidly evolve, the extent of the impact on our business, financial condition, profitability, cash flows and supply chain will depend on future developments, including, but not limited to, the duration of the temporary closing of our stores, the duration of quarantines, shelter-in-place and other travel restrictions within U.S. and other affected countries, the duration and spread of the pandemic (including any relapses), its severity, the actions to contain the virus and/or treat its impact, the duration, timing and severity of the impact on consumer spending (including any recession resulting from the pandemic), and how quickly and to what extent normal economic and operating conditions can resume, all of which are highly uncertain and cannot be predicted.

In addition, as the Company’s business is subject to seasonal fluctuation, with significant portions of the Company’s net sales and net income being realized during the fourth quarter of the fiscal year due to the holiday selling season. As a result, the results for the 13 weeks ended May 2, 2020 are not necessarily indicative of the results to be expected for the fiscal year ending January 30, 2021, or for any other future interim period or for any future year.

These unaudited interim consolidated financial statements and the related notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended February 1, 2020. All amounts are stated in thousands, with the exception of per share amounts and number of stores.

Summary of significant accounting policies

3 Months Ended

May 02, 2020

Summary of significant accounting policies

Summary of significant accounting policies

2.Summary of significant accounting policies

Information regarding the Company’s significant accounting policies is contained in Note 2, “Summary of significant accounting policies,” to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended February 1, 2020. Presented below and in the following notes is supplemental information that should be read in conjunction with “Notes to Consolidated Financial Statements” in the Annual Report.

Fiscal quarter

The Company’s quarterly periods are the 13 weeks ending on the Saturday closest to April 30, July 31, October 31, and January 31. The Company’s first quarter in fiscal 2020 and 2019 ended on May 2, 2020 and May 4, 2019, respectively.

Use of estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the accounting period. The Company considers its accounting policies relating to inventory valuations, vendor allowances, impairment of long-lived tangible assets, loyalty program and income taxes to be the most significant accounting policies that involve management estimates and judgments. While the full impact of the COVID-19 pandemic is unknown and cannot be reasonably estimated, the Company has made accounting estimates based on the facts and circumstances available as of the reporting date. Actual amounts could differ from these estimates, and such differences could be material.

Impairment of long-lived tangible assets

The asset group is defined as the lowest level for which identifiable cash flows are available and largely independent of the cash flows of other groups of assets. The asset group identified is at the store level and includes both property and equipment and operating lease assets.

Fair values of the asset group are estimated using an income approach based on management’s forecast of future cash flows derived from continued retail operations and the fair value of individual operating lease assets determined using estimated market rental rates. Significant estimates are used in determining future cash flows of each store over its remaining lease term including our expectations of future projected cash flows including revenues, operating expenses, and market conditions. An impairment loss is recorded if the carrying amount of the long-lived asset exceeds its fair value. As a result of the COVID-19 pandemic, we experienced lower than projected revenues and identified indicators of impairment for certain stores. We performed undiscounted cash flow analyses over the long-lived assets associated with certain stores. Based on these undiscounted cash flow analyses, we determined that certain long-lived assets had carrying values that exceeded their estimated undiscounted cash flows. We estimated fair values of these long-lived assets based on our discounted cash flows or market rent assessments. Our analysis indicated that the carrying values of our long-lived assets exceeded their respective fair values. As a result, we recognized an impairment charge of $19,542 for the 13 weeks ended May 2, 2020. The charge is recorded in impairment charges in the consolidated statements of operations. These impairment charges were primarily driven by lower than projected revenues and the effect of store closures as a result of the COVID-19 pandemic.

The determination of estimated market rent used in the fair value estimate of the Company’s operating lease assets included within the respective store asset group requires significant management judgment. Changes in these estimates could have a significant impact on whether long-lived store assets should be further evaluated for impairment and could have a significant impact on the resulting impairment charge.

The significant estimates, all of which are considered Level 3 inputs, used in the fair value methodology include: the Company’s expectations for future operations and projected cash flows, including revenues, operating expenses, and market conditions.

Recent accounting pronouncements not yet adopted

Taxes – Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes. The guidance removes certain exceptions for recognizing deferred taxes for equity method investments, performing intraperiod allocation, and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for goodwill and allocating taxes to members of a consolidated group, among others. This guidance is effective for interim and annual reporting periods beginning after December 15, 2020. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The transition requirements are dependent upon each amendment within this update and will be applied either prospectively or retrospectively. The adoption of ASU 2019-12 is not expected to have a material impact on the Company’s consolidated financial position, results of operations, or cash flows.

Recently adopted accounting pronouncements

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 Company adopted the new guidance prospectively as of February 2, 2020, and its adoption did not have a material impact on the Company’s consolidated financial position, results of operations, or cash flows.

Revenue

3 Months Ended

May 02, 2020

Revenue

Revenue

3.Revenue

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 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 approximate percentage of net sales by primary category:


	13 Weeks Ended
(Percentage of net sales)	May 2, 2020	May 4, 2019
Cosmetics	49%	53%
Skincare, bath, and fragrance	24%	21%
Haircare products and styling tools	18%	17%
Services	4%	5%
Other (nail products, accessories, and other)	5%	4%
	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:


	13 Weeks Ended
	May 2,		May 4,
	2020		2019
Beginning balance	$	230,011	$	193,585
Additions to contract liabilities (1)		41,636		71,790
Deductions to contract liabilities (2)		(64,994)		(91,454)
Ending balance	$	206,653	$	173,921

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

(2)	Revenue recognized in the current period related to the beginning liability.

Other amounts included in deferred revenue were $9,677 and $9,072 at May 2, 2020 and May 4, 2019, respectively.

Goodwill and Other Intangible Assets

3 Months Ended

May 02, 2020

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

4.Goodwill and other intangible assets

Goodwill, which represents the excess of cost over the fair value of net assets acquired, amounted to $10,870 at May 2, 2020, February 1, 2020, and May 4, 2019. No additional goodwill was recognized during the 13 weeks ended May 2, 2020. The Company reviews the recoverability of goodwill annually during the fourth quarter or more frequently if an event occurs or circumstances change that would indicate that impairment may exist.

Other intangible assets with finite useful lives are amortized over their useful lives. The Company reviews the recoverability of long-lived assets whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable.

As a result of the COVID-19 pandemic and decline in the macroeconomic environment, the Company performed an interim impairment analysis as of May 2, 2020, which indicated that no impairment existed for goodwill or other intangible assets.

Leases

3 Months Ended

May 02, 2020

Leases

Leases

5.Leases

The Company leases retail stores, distribution and fast fulfillment centers, corporate offices, and certain equipment under non-cancelable operating leases with various expiration dates through 2032. Leases generally have initial lease terms of 10 years and include renewal options under substantially the same terms and conditions as the original leases. Leases do not contain any material residual value guarantees or material restrictive covenants.

All retail store, distribution and fast fulfillment center, and corporate office leases are classified as operating leases. The Company does not have any finance leases.

Lease cost

The majority of operating lease cost relates to retail stores and distribution and fast fulfillment centers and is classified within cost of sales. Operating lease cost for corporate offices is classified within selling, general and administrative expenses. Operating lease cost from the control date through store opening date is classified within pre-opening expenses. Operating lease cost was $77,533 and $71,342 for the 13 weeks ended May 2, 2020 and May 4, 2019, respectively.

Other information

The following table presents supplemental disclosures of cash flow information related to operating leases:


	13 Weeks Ended
(In thousands)	May 2, 2020			May 4, 2019
Cash paid for operating lease liabilities (1)	$	87,434	$	82,101
Operating lease assets obtained in exchange for operating lease liabilities (non-cash)		119,371		93,497

(1)	Excludes cash received for tenant incentives of $12,075 and $18,175 for the 13 weeks ended May 2, 2020 and May 4, 2019, respectively.

Commitments and contingencies

3 Months Ended

May 02, 2020

Commitments and contingencies

Commitments and contingencies

6.Commitments and contingencies

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

Debt

3 Months Ended

May 02, 2020

Debt

Notes payable

7.Debt

On March 11, 2020, the Company entered into Amendment No. 1 to the Second Amended and Restated Loan Agreement (as so amended, the Loan Agreement) with Wells Fargo Bank, National Association, as Administrative Agent, Collateral Agent and a Lender thereunder, Wells Fargo Bank, National Association and JPMorgan Chase Bank, N.A., as Lead Arrangers and Bookrunners, JPMorgan Chase Bank, N.A., as Syndication Agent and a Lender, PNC Bank, National Association, as Documentation Agent and a Lender, and the other lenders party thereto. The Loan Agreement matures on March 11, 2025, provides maximum revolving loans equal to the lesser of $1,000,000 or a percentage of eligible owned inventory and eligible owned receivables (which borrowing base may, at the election of the Company and satisfaction of certain conditions, include a percentage of qualified cash), contains a $50,000 subfacility for letters of credit and allows the Company to increase the revolving facility by an additional $100,000, subject to the consent by each lender and other conditions. The Loan Agreement contains a requirement to maintain a fixed charge coverage ratio of not less than 1.0 to 1.0 during such periods when availability under the Loan Agreement falls below a specified threshold. Substantially all of the Company’s assets are pledged as collateral for outstanding borrowings under the Loan Agreement. Outstanding borrowings bear interest, at the Company’s election, at either a base rate plus a margin of 0% to 0.125% or the London

Interbank Offered Rate plus a margin of 1.125% to 1.250%, with such margins based on the Company’s borrowing availability, and the unused line fee is 0.20% per annum.

As of May 2, 2020, the Company had $800,000 outstanding under the credit facility and the weighted average interest rate was 1.94%. As of February 1, 2020 and May 4, 2019, the Company had no borrowings outstanding under the credit facility. As of May 2, 2020, February 1, 2020, and May 4, 2019, the Company was in compliance with all terms and covenants of the Loan Agreement.

Fair value measurements

3 Months Ended

May 02, 2020

Fair value measurements

Fair value measurements

8.Fair value measurements

The carrying value of cash and cash equivalents, short-term investments, accounts receivable, and accounts payable approximates their estimated fair values due to the short maturities of these instruments. The carrying value of long-term debt also approximates its fair value.

Fair value is measured using inputs from the three levels of the fair value hierarchy, which are described as follows:

●

Level 1 – observable inputs such as quoted prices for identical instruments in active markets.

●

Level 2 – inputs other than quoted prices in active markets that are observable either directly or indirectly through corroboration with observable market data.

●

Level 3 – unobservable inputs in which there is little or no market data, which would require the Company to develop its own assumptions.

As of May 2, 2020, February 1, 2020 and May 4, 2019, the Company held financial liabilities included in other long-term liabilities on the consolidated balance sheets of $23,330, $29,442, and $25,648, respectively, related to its non-qualified deferred compensation plan. The liabilities have been categorized as Level 2 as they are based on third-party reported values, which are based primarily on quoted market prices of underlying assets of the funds within the plan.

Some assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. These assets can include long-lived assets and goodwill that have been reduced to fair value when impaired. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs.

- 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

3 Months Ended

May 02, 2020

Investments

Investments

9.Investments

Short-term investments typically consist of certificates of deposit and are carried at cost, which approximates fair value and are recorded in the consolidated balance sheets in short-term investments. The Company’s short-term investments were $110,000, $110,000, and $195,000 as of May 2, 2020, February 1, 2020, and May 4, 2019 consist, respectively.

The Company’s investments in renewable energy projects are accounted for under the equity method of accounting. The balance of these investments was $6,437, $3,936, and $9,977 as of May 2, 2020, February 1, 2020 and May 4, 2019, respectively, and is included in other long-term assets on the consolidated balance sheets. The Company contributed capital of $5,386 and received distributions including $1,250 of investment tax credits during the 13 weeks ended May 2, 2020. The Company contributed capital of $12,736 and received distributions including $4,864 of investment tax credits during the 13 weeks ended May 4, 2019.

Stock-based compensation

3 Months Ended

May 02, 2020

Stock-based compensation

Stock-based compensation

10.Stock-based compensation

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


	13 Weeks Ended
	May 2,	May 4,
	2020	2019
Volatility rate	43.0%	31.0%
Average risk-free interest rate	0.3%	2.3%
Average expected life (in years)	3.4	3.5
Dividend yield	None	None

The Company granted 248 and 97 stock options during the 13 weeks ended May 2, 2020 and May 4, 2019, respectively. The stock-based compensation expense against operating income for stock options was $2,475 and $2,120 for the 13 weeks ended May 2, 2020 and May 4, 2019, respectively. The weighted-average grant date fair value of these stock options was $54.40 and $89.91 for the 13 weeks ended May 2, 2020 and May 4, 2019, respectively. At May 2, 2020, there was approximately $26,649 of unrecognized stock-based compensation expense related to unvested stock options.

The Company issued 152 and 39 restricted stock units during the 13 weeks ended May 2, 2020 and May 4, 2019, respectively. The stock-based compensation expense charged against operating income for restricted stock units was $4,187 and $2,821 for the 13 weeks ended May 2, 2020 and May 4, 2019, respectively. At May 2, 2020, there was approximately $42,550 of unrecognized stock-based compensation expense related to restricted stock units.

The Company issued 21 performance-based restricted stock units during the 13 weeks ended May 4, 2019. The Company did not issue any performance-based restricted stock units during the 13 weeks ended May 2, 2020. The stock-based compensation benefit included in operating income for performance-based restricted stock units was $480 for the 13 weeks ended May 2, 2020. The stock-based compensation expense charged against operating income for performance-based restricted stock units was and $1,711 for the 13 weeks ended May 4, 2019. At May 2, 2020, there was approximately $2,123 of unrecognized stock-based compensation expense related to performance-based restricted stock units.

Income Taxes

3 Months Ended

May 02, 2020

Income Taxes

Income Taxes

11.Income taxes

Income tax expense reflects the federal statutory tax rate and the weighted average state statutory tax rate for the states in which the Company operates stores. Income tax benefit of $24,247 for the 13 weeks ended May 2, 2020 represents an effective tax rate of 23.6%, compared to $47,365 of tax expense representing an effective tax rate of 19.8% for the 13 weeks ended May 4, 2019. The higher effective tax rate is due to a reduction of tax deductible stock option expense in first quarter of fiscal 2020.

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security (CARES) Act. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The Company is continuing to evaluate the impact the CARES act will have on the Company’s financials and required disclosures.

Net income (loss) per common share

3 Months Ended

May 02, 2020

Net income (loss) per common share

Net income (loss) per common share

12.Net income (loss) per common share

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


	13 Weeks Ended
	May 2,		May 4,
(In thousands, except per share data)	2020		2019
Numerator:
Net income (loss)	$	(78,509)	$	192,221

Denominator:
Weighted-average common shares – Basic		56,419		58,631
Dilutive effect of stock options and non-vested stock		—		362
Weighted-average common shares – Diluted		56,419		58,993

Net income (loss) per common share:
Basic	$	(1.39)	$	3.28
Diluted	$	(1.39)	$	3.26

The denominator for diluted net income (loss) per common share for the 13 weeks ended May 2, 2020 and May 4, 2019 excludes 732 and 152 employee stock options and restricted stock units, respectively, due to their anti-dilutive effects. Outstanding performance-based restricted stock units are included in the computation of dilutive shares only to the extent that the underlying performance conditions are satisfied prior to the end of the reporting period or would be considered satisfied if the end of the reporting period were the end of the related contingency period and the results would be dilutive under the treasury stock method.

Share repurchase program

3 Months Ended

May 02, 2020

Share repurchase program

Share repurchase program

13.Share repurchase program

On March 15, 2018, the Company announced that the Board of Directors authorized a share repurchase program (the 2018 Share Repurchase Program) pursuant to which the Company could repurchase up to $625,000 of the Company’s common stock. The 2018 Share Repurchase Program authorization revoked the previously authorized but unused amount of $41,317 from the earlier share repurchase program. The 2018 Share Repurchase Program did not have an expiration date but provided for suspension or discontinuation at any time.

On March 14, 2019, the Company announced that the Board of Directors authorized a new share repurchase program (the 2019 Share Repurchase Program) pursuant to which the Company could repurchase up to $875,000 of the Company’s common stock. The 2019 Share Repurchase Program authorization revoked the previously authorized but unused amount of $25,435 from the 2018 Share Repurchase Program. The 2019 Share Repurchase Program did not have an expiration date but provided for suspension or discontinuation at any time.

On March 12, 2020, the Company announced that the Board of Directors authorized a new share repurchase program (the 2020 Share Repurchase Program) pursuant to which the Company may repurchase up to $1,600,000 of the Company’s common stock. The 2020 Share Repurchase Program authorization revoked the previously authorized but unused amounts of $165,309 from the 2019 Share Repurchase Program. The 2020 Share Repurchase Program does not have an expiration date and may be suspended or discontinued at any time. On April 2, 2020, the Company announced that the share repurchase program has been suspended in order to strengthen its liquidity and preserve cash while navigating the COVID-19 pandemic.

A summary of the Company’s common stock repurchase activity is presented in the following table:


	13 Weeks Ended
(In thousands)	May 2, 2020		May 4, 2019
Shares repurchased		327		318
Total cost of shares repurchased	$	72,981	$	107,399

Subsequent event

3 Months Ended

May 02, 2020

Subsequent event

Subsequent event

Note 14. Subsequent events

On May 7, 2020, the Company announced plans to reopen select stores that were temporarily closed amid the COVID-19 pandemic, as well as the implementation of its new curbside pickup service and increased safety measures and processes. As of May 28, 2020, the Company has 333 stores open for guests and 840 stores available for curbside pickup service. Store re-openings are being done on a phased timeline, taking a thoughtful, measured approach based on a variety of criteria, including state and local guidelines and the adoption of the Company’s new Shop Safe Standards related safety protocols.

Summary of significant accounting policies (Policies)	3 Months Ended
Summary of significant accounting policies (Policies)	May 02, 2020
Summary of significant accounting policies
Fiscal quarter	Fiscal quarter The Company’s quarterly periods are the 13 weeks ending on the Saturday closest to April 30, July 31, October 31, and January 31. The Company’s first quarter in fiscal 2020 and 2019 ended on May 2, 2020 and May 4, 2019, respectively.
Impairment of long-lived tangible assets	Impairment of long-lived tangible assets The asset group is defined as the lowest level for which identifiable cash flows are available and largely independent of the cash flows of other groups of assets. The asset group identified is at the store level and includes both property and equipment and operating lease assets. Fair values of the asset group are estimated using an income approach based on management’s forecast of future cash flows derived from continued retail operations and the fair value of individual operating lease assets determined using estimated market rental rates. Significant estimates are used in determining future cash flows of each store over its remaining lease term including our expectations of future projected cash flows including revenues, operating expenses, and market conditions. An impairment loss is recorded if the carrying amount of the long-lived asset exceeds its fair value. As a result of the COVID-19 pandemic, we experienced lower than projected revenues and identified indicators of impairment for certain stores. We performed undiscounted cash flow analyses over the long-lived assets associated with certain stores. Based on these undiscounted cash flow analyses, we determined that certain long-lived assets had carrying values that exceeded their estimated undiscounted cash flows. We estimated fair values of these long-lived assets based on our discounted cash flows or market rent assessments. Our analysis indicated that the carrying values of our long-lived assets exceeded their respective fair values. As a result, we recognized an impairment charge of $19,542 for the 13 weeks ended May 2, 2020. The charge is recorded in impairment charges in the consolidated statements of operations. These impairment charges were primarily driven by lower than projected revenues and the effect of store closures as a result of the COVID-19 pandemic. The determination of estimated market rent used in the fair value estimate of the Company’s operating lease assets included within the respective store asset group requires significant management judgment. Changes in these estimates could have a significant impact on whether long-lived store assets should be further evaluated for impairment and could have a significant impact on the resulting impairment charge. The significant estimates, all of which are considered Level 3 inputs, used in the fair value methodology include: the Company’s expectations for future operations and projected cash flows, including revenues, operating expenses, and market conditions.
Use of estimates	Use of estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the accounting period. The Company considers its accounting policies relating to inventory valuations, vendor allowances, impairment of long-lived tangible assets, loyalty program and income taxes to be the most significant accounting policies that involve management estimates and judgments. While the full impact of the COVID-19 pandemic is unknown and cannot be reasonably estimated, the Company has made accounting estimates based on the facts and circumstances available as of the reporting date. Actual amounts could differ from these estimates, and such differences could be material.
Recent accounting pronouncements not yet adopted and Recently adopted accounting pronouncements	Recent accounting pronouncements not yet adopted Taxes – Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes. The guidance removes certain exceptions for recognizing deferred taxes for equity method investments, performing intraperiod allocation, and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for goodwill and allocating taxes to members of a consolidated group, among others. This guidance is effective for interim and annual reporting periods beginning after December 15, 2020. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The transition requirements are dependent upon each amendment within this update and will be applied either prospectively or retrospectively. The adoption of ASU 2019-12 is not expected to have a material impact on the Company’s consolidated financial position, results of operations, or cash flows. Recently adopted accounting pronouncements 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 Company adopted the new guidance prospectively as of February 2, 2020, and its adoption did not have a material impact on the Company’s consolidated financial position, results of operations, or cash flows.

Revenue (Tables)

3 Months Ended

May 02, 2020

Revenue

Schedule of approximate percentage of net sales by primary category


	13 Weeks Ended
(Percentage of net sales)	May 2, 2020	May 4, 2019
Cosmetics	49%	53%
Skincare, bath, and fragrance	24%	21%
Haircare products and styling tools	18%	17%
Services	4%	5%
Other (nail products, accessories, and other)	5%	4%
	100%	100%

Summary of changes in deferred revenue


	13 Weeks Ended
	May 2,		May 4,
	2020		2019
Beginning balance	$	230,011	$	193,585
Additions to contract liabilities (1)		41,636		71,790
Deductions to contract liabilities (2)		(64,994)		(91,454)
Ending balance	$	206,653	$	173,921

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

(2)	Revenue recognized in the current period related to the beginning liability.

Leases (Tables)

3 Months Ended

May 02, 2020

Leases

Schedule of cash flow information and non-cash activity related to operating leases


	13 Weeks Ended
(In thousands)	May 2, 2020			May 4, 2019
Cash paid for operating lease liabilities (1)	$	87,434	$	82,101
Operating lease assets obtained in exchange for operating lease liabilities (non-cash)		119,371		93,497

(1)	Excludes cash received for tenant incentives of $12,075 and $18,175 for the 13 weeks ended May 2, 2020 and May 4, 2019, respectively.

Stock-based compensation (Tables)

3 Months Ended

May 02, 2020

Stock-based compensation

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


	13 Weeks Ended
	May 2,	May 4,
	2020	2019
Volatility rate	43.0%	31.0%
Average risk-free interest rate	0.3%	2.3%
Average expected life (in years)	3.4	3.5
Dividend yield	None	None

Net income (loss) per common share (Tables)

3 Months Ended

May 02, 2020

Net income (loss) per common share

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


	13 Weeks Ended
	May 2,		May 4,
(In thousands, except per share data)	2020		2019
Numerator:
Net income (loss)	$	(78,509)	$	192,221

Denominator:
Weighted-average common shares – Basic		56,419		58,631
Dilutive effect of stock options and non-vested stock		—		362
Weighted-average common shares – Diluted		56,419		58,993

Net income (loss) per common share:
Basic	$	(1.39)	$	3.28
Diluted	$	(1.39)	$	3.26

Share repurchase program (Tables)

3 Months Ended

May 02, 2020

Share repurchase program

Summary of the Company's common stock repurchase activity


	13 Weeks Ended
(In thousands)	May 2, 2020		May 4, 2019
Shares repurchased		327		318
Total cost of shares repurchased	$	72,981	$	107,399

Business and basis of presentation (Details)	May 02, 2020 store state
Stores by state
Number of stores operated	1,264
Number of states in which entity operates \| state	50
Alabama
Stores by state
Number of stores operated	22
Alaska
Stores by state
Number of stores operated	3
Arizona
Stores by state
Number of stores operated	30
Arkansas
Stores by state
Number of stores operated	10
California
Stores by state
Number of stores operated	160
Colorado
Stores by state
Number of stores operated	26
Connecticut
Stores by state
Number of stores operated	17
Delaware
Stores by state
Number of stores operated	3
Florida
Stores by state
Number of stores operated	86
Georgia
Stores by state
Number of stores operated	38
Hawaii
Stores by state
Number of stores operated	4
Idaho
Stores by state
Number of stores operated	9
Illinois
Stores by state
Number of stores operated	55
Indiana
Stores by state
Number of stores operated	24
Iowa
Stores by state
Number of stores operated	10
Kansas
Stores by state
Number of stores operated	13
Kentucky
Stores by state
Number of stores operated	15
Louisiana
Stores by state
Number of stores operated	19
Maine
Stores by state
Number of stores operated	3
Maryland
Stores by state
Number of stores operated	25
Massachusetts
Stores by state
Number of stores operated	21
Michigan
Stores by state
Number of stores operated	49
Minnesota
Stores by state
Number of stores operated	18
Mississippi
Stores by state
Number of stores operated	10
Missouri
Stores by state
Number of stores operated	24
Montana
Stores by state
Number of stores operated	6
Nebraska
Stores by state
Number of stores operated	5
Nevada
Stores by state
Number of stores operated	15
New Hampshire
Stores by state
Number of stores operated	7
New Jersey
Stores by state
Number of stores operated	39
New Mexico
Stores by state
Number of stores operated	7
New York
Stores by state
Number of stores operated	51
North Carolina
Stores by state
Number of stores operated	34
North Dakota
Stores by state
Number of stores operated	3
Ohio
Stores by state
Number of stores operated	43
Oklahoma
Stores by state
Number of stores operated	21
Oregon
Stores by state
Number of stores operated	17
Pennsylvania
Stores by state
Number of stores operated	45
Rhode Island
Stores by state
Number of stores operated	3
South Carolina
Stores by state
Number of stores operated	20
South Dakota
Stores by state
Number of stores operated	3
Tennessee
Stores by state
Number of stores operated	26
Texas
Stores by state
Number of stores operated	115
Utah
Stores by state
Number of stores operated	14
Vermont
Stores by state
Number of stores operated	1
Virginia
Stores by state
Number of stores operated	29
Washington
Stores by state
Number of stores operated	36
West Virginia
Stores by state
Number of stores operated	7
Wisconsin
Stores by state
Number of stores operated	20
Wyoming
Stores by state
Number of stores operated	3

Summary of significant accounting policies - Fiscal quarter (Details) - USD ($) $ in Thousands	3 Months Ended
	May 02, 2020	May 04, 2019
Summary of significant accounting policies
Fiscal period	91 days	91 days
Impairment charges	$ 19,542

Revenue - Disaggregated revenue (Details) - Sales Revenue	3 Months Ended
	May 02, 2020	May 04, 2019
Disaggregated revenue
Concentration (as a percent)	100.00%	100.00%
Cosmetics
Disaggregated revenue
Concentration (as a percent)	49.00%	53.00%
Skincare, bath, and fragrance
Disaggregated revenue
Concentration (as a percent)	24.00%	21.00%
Haircare products and styling tools
Disaggregated revenue
Concentration (as a percent)	18.00%	17.00%
Services
Disaggregated revenue
Concentration (as a percent)	4.00%	5.00%
Other (nail products, accessories, and other)
Disaggregated revenue
Concentration (as a percent)	5.00%	4.00%

Revenue - Deferred revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	May 02, 2020	May 04, 2019
Summary of changes in deferred revenue
Balance at beginning of period	$ 230,011	$ 193,585
Additions to contract liabilities	41,636	71,790
Deductions to contract liabilities	(64,994)	(91,454)
Balance at end of period	206,653	173,921
Other amounts included in deferred revenue	$ 9,677	$ 9,072

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	May 02, 2020	Feb. 01, 2020	May 04, 2019
Goodwill and Other Intangible Assets
Goodwill	$ 10,870	$ 10,870	$ 10,870
Additional goodwill recognized	0
Impairment for goodwill or other intangiible assets	$ 0

Leases - Lease costs (Details) - USD ($) $ in Thousands	3 Months Ended
Leases - Lease costs (Details) - USD ($) $ in Thousands	May 02, 2020	May 04, 2019
Leases
Initial lease term	10 years
Lease Costs
Operating lease cost	$ 77,533	$ 71,342

Leases - Cash flow information and non-cash activity (Details) - USD ($) $ in Thousands	3 Months Ended
	May 02, 2020	May 04, 2019
Leases
Cash paid for operating lease liabilities	$ 87,434	$ 82,101
Operating lease assets obtained in exchange for operating lease liabilities (non-cash)	119,371	93,497
Excluded cash received for tenant incentives	$ 12,075	$ 18,175

Debt (Details) $ in Thousands	3 Months Ended
Debt (Details) $ in Thousands	May 02, 2020 USD ($)	Feb. 01, 2020 USD ($)	May 04, 2019 USD ($)
Notes payable
Outstanding borrowings under credit facility		$ 0	$ 0
Revolving loans
Notes payable
Outstanding borrowings under credit facility	$ 800,000
Weighted average interest rate	1.94%
Amendment No. 1 to the Second Amended and Restated Loan Agreement
Notes payable
Unused line fee (as a percent)	0.20%
Amendment No. 1 to the Second Amended and Restated Loan Agreement \| Minimum
Notes payable
Fixed charge coverage ratio covenant	1.0
Amendment No. 1 to the Second Amended and Restated Loan Agreement \| London Interbank Offered Rate \| Minimum
Notes payable
Interest rate margin (as a percent)	1.125%
Amendment No. 1 to the Second Amended and Restated Loan Agreement \| London Interbank Offered Rate \| Maximum
Notes payable
Interest rate margin (as a percent)	1.25%
Amendment No. 1 to the Second Amended and Restated Loan Agreement \| Base Rate \| Minimum
Notes payable
Interest rate margin (as a percent)	0.00%
Amendment No. 1 to the Second Amended and Restated Loan Agreement \| Base Rate \| Maximum
Notes payable
Interest rate margin (as a percent)	0.125%
Amendment No. 1 to the Second Amended and Restated Loan Agreement \| Revolving loans
Notes payable
Maximum borrowing capacity	$ 1,000,000
Contingent increase to revolving facility	100,000
Amendment No. 1 to the Second Amended and Restated Loan Agreement \| Letters of credit
Notes payable
Maximum borrowing capacity	$ 50,000

Fair value measurements (Details) - USD ($) $ in Thousands	May 02, 2020	Feb. 01, 2020	May 04, 2019
Level 2 \| Non-qualified deferred compensation plan
Fair value measurements
Fair value of financial liabilities	$ 23,330	$ 29,442	$ 25,648

Investments (Details) - USD ($) $ in Thousands	3 Months Ended
Investments (Details) - USD ($) $ in Thousands	May 02, 2020	May 04, 2019	Feb. 01, 2020
Investments
Short-term investments	$ 110,000	$ 195,000	$ 110,000
Contributions of capital to equity method investments	5,386	12,736
Investment tax credits	1,250	4,864
Renewable energy projects
Investments
Equity method investments	$ 6,437	$ 9,977	$ 3,936

Stock-based compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	May 02, 2020	May 04, 2019
Stock options
Weighted-average assumptions to estimate fair value
Volatility rate (as a percent)	43.00%	31.00%
Average risk-free interest rate (as a percent)	0.30%	2.30%
Average expected life	3 years 4 months 24 days	3 years 6 months
Dividend yield (as a percent)	0.00%	0.00%
Granted (in shares)	248	97
Stock-based compensation expense	$ 2,475	$ 2,120
Weighted-average grant date fair value of options granted (in dollars per share)	$ 54.40	$ 89.91
Unrecognized compensation expense	$ 26,649
Restricted stock units
Weighted-average assumptions to estimate fair value
Stock-based compensation expense	$ 4,187	$ 2,821
Issued (in shares)	152	39
Unrecognized compensation expense	$ 42,550
Performance-based restricted stock units
Weighted-average assumptions to estimate fair value
Stock-based compensation expense	(480)	$ 1,711
Issued (in shares)		21
Unrecognized compensation expense	$ 2,123

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	May 02, 2020	May 04, 2019
Income Taxes
Income tax expense (benefit)	$ (24,247)	$ 47,365
Effective tax rate (as a percent)	23.60%	19.80%

Net income (loss) per common share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	May 02, 2020	May 04, 2019
Numerator
Net income (loss)	$ (78,509)	$ 192,221
Denominator
Weighted-average common shares - Basic	56,419	58,631
Dilutive effect of stock options and non-vested stock		362
Weighted-average common shares - Diluted	56,419	58,993
Net income (loss) per common share:
Basic	$ (1.39)	$ 3.28
Diluted	$ (1.39)	$ 3.26

- 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 (loss) per common share - Anti-dilutive Shares (Details) - shares shares in Thousands	3 Months Ended
	May 02, 2020	May 04, 2019
Net income (loss) per common share
Employee stock options and restricted stock units excluded from the computation of net income per common share	732	152

Share repurchase program (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	May 02, 2020	May 04, 2019	Mar. 12, 2020	Mar. 14, 2019	Mar. 15, 2018
Share repurchase program
Common stock repurchased and retired	$ 72,981	$ 107,399
Common Stock
Share repurchase program
Shares repurchased (in shares)	327	318
Common stock repurchased and retired	$ 3	$ 3
Share Repurchase Programs
Share repurchase program
Shares repurchased (in shares)	327	318
Common stock repurchased and retired	$ 72,981	$ 107,399
2018 Share Repurchase Program
Share repurchase program
Remaining authorized amount from earlier share repurchase program					$ 41,317
2018 Share Repurchase Program \| Maximum
Share repurchase program
Authorized amount of share repurchase program					$ 625,000
2019 Share Repurchase Program
Share repurchase program
Authorized amount of share repurchase program				$ 875,000
Remaining authorized amount from earlier share repurchase program				$ 25,435
2020 Share Repurchase Program
Share repurchase program
Authorized amount of share repurchase program			$ 1,600,000
Remaining authorized amount from earlier share repurchase program			$ 165,309

Subsequent event (Details) - Subsequent events	May 28, 2020 store
Subsequent event
Number of open stores	333
Number of stores with curside pickup service	840