ULTA BEAUTY, INC., 10-Q filed on 5/27/2021
Quarterly Report
v3.21.1
Document and Entity Information - shares
3 Months Ended
May 01, 2021
May 21, 2021
Cover [Abstract]    
Entity Registrant Name ULTA BEAUTY, INC.  
Document Quarterly Report true  
Document Transition Report false  
Entity Central Index Key 0001403568  
Document Type 10-Q  
Document Period End Date May 01, 2021  
Amendment Flag false  
Current Fiscal Year End Date --01-29  
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 $0.01 per share  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Common Stock, Shares Outstanding   54,757,556
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q1  
Trading Symbol ULTA  
v3.21.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
May 01, 2021
Jan. 30, 2021
May 02, 2020
Current assets:      
Cash and cash equivalents $ 947,456 $ 1,046,051 $ 1,043,540
Short-term investments 0 0 110,000
Receivables, net 154,342 193,109 88,691
Merchandise inventories, net 1,353,565 1,168,215 1,340,566
Prepaid expenses and other current assets 108,393 107,402 97,041
Prepaid income taxes     48,982
Total current assets 2,563,756 2,514,777 2,728,820
Property and equipment, net 960,440 995,795 1,148,341
Operating lease assets 1,487,616 1,504,614 1,583,490
Goodwill 10,870 10,870 10,870
Other intangible assets, net 2,233 2,465 3,159
Deferred compensation plan assets 34,279 33,223 25,388
Other long-term assets 28,350 28,225 30,483
Total assets 5,087,544 5,089,969 5,530,551
Current liabilities:      
Accounts payable 552,837 477,052 466,043
Accrued liabilities 322,676 296,334 173,310
Deferred revenue 270,090 274,383 216,330
Current operating lease liabilities 263,200 253,415 240,496
Accrued income taxes 113,960 42,529  
Total current liabilities 1,522,763 1,343,713 1,096,179
Non-current operating lease liabilities 1,613,309 1,643,386 1,748,245
Long-term debt     800,000
Deferred income taxes 66,483 65,359 95,276
Other long-term liabilities 40,272 37,962 36,892
Total liabilities 3,242,827 3,090,420 3,776,592
Commitments and contingencies (Note 7)
Stockholders' equity:      
Common stock, $0.01 par value, 400,000 shares authorized; 55,803, 56,952 and 57,003 shares issued; 55,090, 56,260 and 56,312 shares outstanding; at May 1, 2021, January 30, 2021, and May 2, 2020 respectively 558 569 570
Treasury stock-common, at cost (44,567) (37,801) (37,450)
Additional paid-in capital 861,312 847,303 813,924
Retained earnings 1,027,414 1,189,422 976,990
Accumulated other comprehensive income (loss)   56 (75)
Total stockholders' equity 1,844,717 1,999,549 1,753,959
Total liabilities and stockholders' equity $ 5,087,544 $ 5,089,969 $ 5,530,551
v3.21.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
shares in Thousands
May 01, 2021
Jan. 30, 2021
May 02, 2020
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 55,803 56,952 57,003
Common stock, shares outstanding 55,090 56,260 56,312
v3.21.1
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
May 01, 2021
May 02, 2020
Consolidated Statements of Operations    
Net sales $ 1,938,519 $ 1,173,210
Cost of sales 1,184,731 869,605
Gross profit 753,788 303,605
Selling, general and administrative expenses 443,875 380,912
Impairment costs   19,542
Pre-opening expenses 4,589 4,635
Operating income (loss) 305,324 (101,484)
Interest expense, net 358 1,272
Income (loss) before income taxes 304,966 (102,756)
Income tax expense (benefit) 74,677 (24,247)
Net income (loss) $ 230,289 $ (78,509)
Net income (loss) per common share:    
Basic $ 4.13 $ (1.39)
Diluted $ 4.10 $ (1.39)
Weighted average common shares outstanding:    
Basic 55,795 56,419
Diluted 56,172 56,419
v3.21.1
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
3 Months Ended
May 01, 2021
May 02, 2020
Consolidated Statements of Comprehensive Income (Loss)    
Net income (loss) $ 230,289 $ (78,509)
Other comprehensive income (loss):    
Foreign currency translation adjustments   (75)
Comprehensive income (loss) $ 230,289 $ (78,584)
v3.21.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
May 01, 2021
May 02, 2020
Operating activities    
Net income (loss) $ 230,289 $ (78,509)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation and amortization 70,599 76,626
Non-cash lease expense 68,881 70,863
Long-lived asset impairment charge   19,542
Deferred income taxes 1,124 5,909
Stock-based compensation expense 8,978 6,182
Loss on disposal of property and equipment 1,089 1,521
Change in operating assets and liabilities:    
Receivables 38,767 50,646
Merchandise inventories (185,350) (46,865)
Prepaid expenses and other current assets (991) 6,526
Income taxes 71,431 (32,595)
Accounts payable 76,580 46,965
Accrued liabilities 23,209 (63,927)
Deferred revenue (4,293) (21,205)
Operating lease liabilities (72,175) (68,976)
Other assets and liabilities 1,929 2,979
Net cash provided by (used in) operating activities 330,067 (24,318)
Investing activities    
Capital expenditures (34,563) (41,474)
Purchases of equity investments 0 (5,386)
Net cash used in investing activities (34,563) (46,860)
Financing activities    
Proceeds from long-term debt   800,000
Repurchase of common shares (392,309) (72,981)
Stock options exercised 5,032 250
Purchase of treasury shares (6,766) (3,002)
Debt issuance costs   (1,799)
Net cash provided by (used in) financing activities (394,043) 722,468
Effect of exchange rate changes on cash and cash equivalents (56) (75)
Net increase (decrease) in cash and cash equivalents (98,595) 651,215
Cash and cash equivalents at beginning of period 1,046,051 392,325
Cash and cash equivalents at end of period 947,456 1,043,540
Supplemental information    
Cash paid for interest 526 1,688
Income taxes paid, net of refunds 1,725 5,636
Non-cash capital expenditures $ 22,825 $ 23,119
v3.21.1
Consolidated Statements of Stockholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Common Stock
Treasury - Common Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Total
Balance at Feb. 01, 2020 $ 573 $ (34,448) $ 807,492 $ 1,128,477   $ 1,902,094
Balance (in shares) at Feb. 01, 2020 57,285 (676)        
Increase (Decrease) in Stockholders' Equity            
Net income (loss)       (78,509)   (78,509)
Stock-based compensation     6,182     6,182
Foreign currency translation adjustments         $ (75) (75)
Stock options exercised and other awards     250     250
Stock options exercised and other awards (in shares) 45          
Purchase of treasury shares   $ (3,002)       (3,002)
Purchase of treasury shares (in shares)   (15)        
Repurchase of common shares $ (3)     (72,978)   (72,981)
Repurchase of common shares (in shares) (327)          
Balance at May. 02, 2020 $ 570 $ (37,450) 813,924 976,990 (75) $ 1,753,959
Balance (in shares) at May. 02, 2020 57,003 (691)       56,312
Balance at Jan. 30, 2021 $ 569 $ (37,801) 847,303 1,189,422 56 $ 1,999,549
Balance (in shares) at Jan. 30, 2021 56,952 (692)       56,260
Increase (Decrease) in Stockholders' Equity            
Net income (loss)       230,289   $ 230,289
Stock-based compensation     8,978     8,978
Foreign currency translation adjustments         $ (56) (56)
Stock options exercised and other awards $ 1   5,031     5,032
Stock options exercised and other awards (in shares) 94          
Purchase of treasury shares   $ (6,766)       (6,766)
Purchase of treasury shares (in shares)   (21)        
Repurchase of common shares $ (12)     (392,297)   (392,309)
Repurchase of common shares (in shares) (1,243)          
Balance at May. 01, 2021 $ 558 $ (44,567) $ 861,312 $ 1,027,414   $ 1,844,717
Balance (in shares) at May. 01, 2021 55,803 (713)       55,090
v3.21.1
Business and basis of presentation
3 Months Ended
May 01, 2021
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 1, 2021, the Company operated 1,290 stores across 50 states, as shown in the table below.

Number of

Number of

Location

    

stores

    

Location

    

stores

Alabama

23

Montana

6

Alaska

3

Nebraska

5

Arizona

30

Nevada

15

Arkansas

10

New Hampshire

8

California

161

New Jersey

43

Colorado

26

New Mexico

7

Connecticut

18

New York

50

Delaware

3

North Carolina

36

Florida

90

North Dakota

3

Georgia

39

Ohio

45

Hawaii

4

Oklahoma

21

Idaho

9

Oregon

17

Illinois

55

Pennsylvania

44

Indiana

24

Rhode Island

3

Iowa

11

South Carolina

22

Kansas

13

South Dakota

3

Kentucky

15

Tennessee

27

Louisiana

18

Texas

118

Maine

3

Utah

14

Maryland

27

Vermont

1

Massachusetts

23

Virginia

30

Michigan

49

Washington

34

Minnesota

19

West Virginia

7

Mississippi

10

Wisconsin

20

Missouri

25

Wyoming

3

Total

1,290

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.

The Company’s business is subject to seasonal fluctuation, with significant portions of net sales and net income being realized during the fourth quarter of the fiscal year due to the holiday selling season. The results for the 13 weeks ended May 1, 2021 are not necessarily indicative of the results to be expected for the fiscal year ending January 29, 2022, or for any other future interim period or for any future year, in particular as a result of the uncertainty around the continuing effects of the COVID-19 pandemic on future periods.

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 January 30, 2021. All amounts are stated in thousands, with the exception of per share amounts and number of stores.

v3.21.1
Summary of significant accounting policies
3 Months Ended
May 01, 2021
Summary of significant accounting policies  
Summary of significant accounting policies

2.Summary of significant accounting policies

Information regarding significant accounting policies is contained in Note 2, “Summary of significant accounting policies,” to the consolidated financial statements in the Annual Report on Form 10-K for the year ended January 30, 2021. 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 first quarter in fiscal 2021 and 2020 ended on May 1, 2021 and May 2, 2020, 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. Actual results could differ from those estimates. The Company considers its accounting policies relating to inventory valuations, vendor allowances, impairment of long-lived tangible and right-of-use assets, loyalty program and income taxes to be the most significant accounting policies that involve management estimates and judgments. Significant changes, if any, in those estimates and assumptions resulting from continuing changes in the economic environment, including those related to the impacts of the COVID-19 pandemic, will be reflected in the consolidated financial statements in future periods.

Impairment of long-lived tangible and right-of-use assets

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

Significant estimates are used in determining future cash flows of each store over its remaining lease term including our expectations of future projected cash flows including revenues and operating expenses. An impairment loss is recorded if the carrying amount of the long-lived asset exceeds its fair value.

Long-lived tangible and right-of-use assets are evaluated for indicators of impairment quarterly or when events or changes in circumstances indicate that their carrying amounts may not be recoverable. An undiscounted cash flow analysis is performed over the asset group. Asset groups are written down only to the extent that their carrying value exceeds their respective fair value. Fair values of the asset group are determined by discounting the cash flows at a rate that approximates the cost of capital of a market participant. Management’s forecast of future cash flows is based on the income approach. The fair value of individual operating lease assets is determined under the market approach using estimated market rent assessments based on broker quotes.

The determination of fair value under the income approach requires assumptions including forecasts of future cash flows (such as revenue growth rates and operating expenses) and selection of a market-based discount rate. Estimates of market rent are based on non-binding broker quotes. As these inputs are unobservable, they are classified as Level 3 inputs under the fair value hierarchy (see Note 9, Fair value measurements”). If actual results are not consistent with estimates and assumptions used in estimating future cash flows and asset fair values, there may be exposure to additional impairment losses in a future period (see Note 4, “Impairment costs”).

CARES Act

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was enacted. The CARES Act, among other things, includes provisions relating to refundable payroll taxes, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The most significant relief measures which the Company qualifies for are the employee retention credit, payroll tax deferral, and technical corrections to tax depreciation.

The Company recognizes government grants for which there is a reasonable assurance of compliance with grant conditions and receipt of credits. The Company believes there is a reasonable assurance that it will comply with the relevant conditions of the employee retention credit provision of the CARES Act and that it will receive the credit. The Company will continue to assess the treatment of the CARES Act to the extent additional guidance and regulations are issued, the further applicability of the CARES Act, and the potential impacts on the business.

Employee retention credit (ERC) and payroll tax deferral. The ERC allows for a refundable tax credit against certain employment taxes equal to 50% of the first ten thousand dollars in qualified wages paid to each employee commencing on March 13, 2020 through January 1, 2021 and 70% of the first ten thousand dollars, per quarter, in qualified wages paid to each employee commencing on January 1, 2021 through June 30, 2021. To be eligible, the Company must (i) have had operations fully or partially suspended because of a governmental order, or (ii) have had gross receipts decline by more than 50% in a calendar quarter in fiscal 2020 or 20% in a calendar quarter in fiscal 2021, when compared to the same quarter in 2019. Qualified wages are limited to wages paid to employees who were not providing services due to the COVID-19 pandemic. During the 13 weeks ended May 1, 2021, there was $2,339 related to the ERC recognized as a reduction of the associated costs within selling, general and administrative expenses on the consolidated statements of operations and within accounts receivable, net on the consolidated balance sheets. The receivable for the ERC was $54,744 as of May 1, 2021. There were no amounts related to the ERC recognized during the 13 weeks ended May 2, 2020, and there was no receivable for the ERC as of May 2, 2020.

Additionally, the CARES Act contains provisions for the deferral of the employer portion of social security taxes incurred through the end of calendar 2020. As of May 1, 2021, there was $43,845 of social security tax payments deferred, of which 50% are required to be remitted by December 2021 and the remaining 50% by December 2022. The deferred amounts are recorded within accrued liabilities on the consolidated balance sheets. There were no social security tax payments deferred as of May 2, 2020.

Recently adopted accounting pronouncements

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 Company adopted the

new guidance as of January 31, 2021, and its adoption had no impact on the Company’s consolidated financial position, results of operations, or cash flows. 

v3.21.1
Revenue
3 Months Ended
May 01, 2021
Revenue  
Revenue

3.Revenue

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  

May 1,

May 2,

(Percentage of net sales)

2021

2020

Cosmetics (1)

45%

50%

Skincare

19%

17%

Haircare products and styling tools

19%

18%

Fragrance and bath

11%

7%

Services

3%

4%

Accessories and other (1)

3%

4%

100%

100%

(1)Certain sales departments were reclassified between categories in the prior year to conform to current year presentation.

Deferred revenue

Deferred revenue primarily represents contract liabilities for the 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, breakage on gift cards is recognized proportionately as redemption occurs.

The following table provides a summary of the changes included in deferred revenue during the 13 weeks ended May 1, 2021 and May 2, 2020:

May 1,

May 2,

(In thousands)

2021

    

2020

Beginning balance

$

269,032

$

230,011

Additions to contract liabilities (1)

97,681

41,636

Deductions to contract liabilities (2)

(113,541)

(64,994)

Ending balance

$

253,172

$

206,653

(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 $16,918 and $9,677 at May 1, 2021 and May 2, 2020, respectively.

v3.21.1
Impairment costs
3 Months Ended
May 01, 2021
Impairment costs  
Impairment, restructuring and other costs

4.Impairment costs

As a result of the COVID-19 pandemic, the Company experienced lower than projected revenues and identified indicators of impairment for certain retail stores during the 13 weeks ended May 2, 2020. The Company’s analysis indicated that the carrying values of certain long-lived tangible and right-of-use assets exceeded their respective fair values. As a result, impairment costs of $19,542 related to certain retail stores were recognized during the 13 weeks ended May 2, 2020. These impairment costs were primarily driven by lower than projected revenues, lower market rate assessments, and the effect of temporary store closures as a result of the COVID-19 pandemic. There were no impairment costs recognized during the 13 weeks ended May 1, 2021.

v3.21.1
Goodwill and Other Intangible Assets
3 Months Ended
May 01, 2021
Goodwill and Other Intangible Assets  
Goodwill and Other Intangible Assets

5.Goodwill and other intangible assets

Goodwill, which represents the excess of cost over the fair value of net assets acquired, was $10,870 at May 1, 2021, January 30, 2021, and May 2, 2020. No additional goodwill was recognized during the 13 weeks ended May 1, 2021. The recoverability of goodwill is reviewed annually during the fourth quarter or more frequently if an event occurs or circumstances change that would indicate that impairment may exist.

Other definite-lived intangible assets are amortized over their useful lives. The recoverability of intangible assets is reviewed whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable.

v3.21.1
Leases
3 Months Ended
May 01, 2021
Leases  
Leases

6.Leases

The Company leases retail stores, distribution centers, fast fulfillment centers, corporate offices, and certain equipment under non-cancelable operating leases with various expiration dates through 2033. All leases are classified as operating leases and generally have initial lease terms of 10 years and, when determined applicable, 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.

Lease cost

The majority of operating lease cost relates to retail stores, distribution centers, 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 $78,736 and $77,533 for the 13 weeks ended May 1, 2021 and May 2, 2020, respectively.

Other information

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

    

13 Weeks Ended

May 1,

May 2,

(In thousands)

    

2021

2020

Cash paid for operating lease liabilities (1)

$

90,227

$

87,434

Operating lease assets obtained in exchange for operating lease liabilities (non-cash)

51,883

119,371

(1)Excludes $7,986 and $12,075 related to cash received for tenant incentives for the 13 weeks ended May 1, 2021 and May 2, 2020, respectively.
v3.21.1
Commitments and contingencies
3 Months Ended
May 01, 2021
Commitments and contingencies  
Commitments and contingencies

7.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 consolidated financial position, results of operations or cash flows.

v3.21.1
Debt
3 Months Ended
May 01, 2021
Debt  
Debt

8.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 1, 2021 and January 30, 2021, there were no borrowings outstanding under the credit facility. As of May 2, 2020, there was $800,000 outstanding under the credit facility and the weighted average interest rate was 1.94%.

As of May 1, 2021, the Company was in compliance with all terms and covenants of the Loan Agreement.

v3.21.1
Fair value measurements
3 Months Ended
May 01, 2021
Fair value measurements  
Fair value measurements

9.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 1, 2021, January 30, 2021, and May 2, 2020, there were liabilities related to the non-qualified deferred compensation plan included in other long-term liabilities on the consolidated balance sheets of $35,449, $32,909, and $23,330, respectively. The liabilities are categorized as Level 2 as they are based on third-party reported values, which are based primarily on quoted market prices of underlying assets of the funds within the plan.

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

v3.21.1
Investments
3 Months Ended
May 01, 2021
Investments  
Investments

10.Investments

Short-term investments typically consist of certificates of deposit and are carried at cost, which approximates fair value. There were no short-term investments as of May 1, 2021 and January 30, 2021. Short-term investments were $110,000 as of May 2, 2020.

Investments in renewable energy projects are accounted for under the equity method of accounting. The balance of these investments was $3,247, $3,174, and $6,437 as of May 1, 2021, January 30, 2021, and May 2, 2020, respectively, and is included in other long-term assets on the consolidated balance sheets. The Company did not contribute capital or receive investment tax credits during the 13 weeks ended May 1, 2021. 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.

v3.21.1
Stock-based compensation
3 Months Ended
May 01, 2021
Stock-based compensation  
Stock-based compensation

11.Stock-based compensation

Stock-based compensation expense is measured on the grant date based on the fair value of the award. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period for awards expected to vest. The estimated grant date fair value of stock options was determined using a Black-Scholes valuation model using the following weighted-average assumptions for the periods indicated:

13 Weeks Ended

May 1,

May 2,

    

2021

    

2020

Volatility rate

 

46.9%

43.0%

Average risk-free interest rate

 

0.4%

0.3%

Average expected life (in years)

 

3.9

 

3.4

Dividend yield

 

None

 

None

The Company granted 61 and 248 stock options during the 13 weeks ended May 1, 2021 and May 2, 2020, respectively. Stock-based compensation expense for stock options was $2,897 and $2,475 for the 13 weeks ended May 1, 2021 and May 2, 2020, respectively. The weighted-average grant date fair value of these stock options was $109.72 and $54.40 for the 13 weeks ended May 1, 2021 and May 2, 2020, respectively. At May 1, 2021, there was approximately $20,470 of unrecognized stock-based compensation expense related to unvested stock options.

There were 52 and 152 restricted stock units issued during the 13 weeks ended May 1, 2021 and May 2, 2020, respectively. Stock-based compensation expense for restricted stock units was $4,835 and $4,187 for the 13 weeks ended May 1, 2021 and May 2, 2020, respectively. At May 1, 2021, there was approximately $36,761 of unrecognized stock-based compensation expense related to restricted stock units.

There were 46 performance-based restricted stock units issued during the 13 weeks ended May 1, 2021. There were no performance-based restricted stock units issued during the 13 weeks ended May 2, 2020. Stock-based compensation expense for performance-based restricted stock units was $1,246 for the 13 weeks ended May 1, 2021. Stock-based compensation benefit for performance-based restricted stock units was $480 for the 13 weeks ended May 2, 2020. At May 1, 2021, there was approximately $19,721 of unrecognized stock-based compensation expense related to performance-based restricted stock units.

v3.21.1
Income Taxes
3 Months Ended
May 01, 2021
Income Taxes  
Income Taxes

12.Income taxes

Income tax expense reflects the federal statutory tax rate and the weighted average state statutory tax rate for the states in which the Company operates stores. Income tax expense of $74,677 for the 13 weeks ended May 1, 2021 represents an effective tax rate of 24.5%, compared to $24,247 of income tax benefit representing an effective tax rate of 23.6% for the 13 weeks ended May 2, 2020. The higher effective tax rate is primarily due to a decrease in the benefit of state tax credits compared to the first quarter of fiscal 2020 as a result of an increase in pretax income.

v3.21.1
Net income (loss) per common share
3 Months Ended
May 01, 2021
Net income (loss) per common share  
Net income (loss) per common share

13.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 common share:

13 Weeks Ended

May 1,

May 2,

(In thousands, except per share data)

    

2021

    

2020

Numerator:

Net income (loss)

    

$

230,289

$

(78,509)

Denominator:

Weighted-average common shares – Basic

55,795

56,419

Dilutive effect of stock options and non-vested stock

377

Weighted-average common shares – Diluted

56,172

56,419

Net income (loss) per common share:

Basic

$

4.13

$

(1.39)

Diluted

$

4.10

$

(1.39)

The denominator for diluted net income (loss) per common share for the 13 weeks ended May 1, 2021 and May 2, 2020 excludes 262 and 732 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.

v3.21.1
Share repurchase program
3 Months Ended
May 01, 2021
Share repurchase program  
Share repurchase program

14.Share repurchase program

On March 14, 2019, the Board of Directors authorized a 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 earlier 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 Board of Directors authorized a 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 amount of $177,805 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.

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

13 Weeks Ended  

May 1,

May 2,

(In thousands)

2021

    

2020

Shares repurchased

1,243

327

Total cost of shares repurchased

$

392,309

$

72,981

v3.21.1
Summary of significant accounting policies (Policies)
3 Months Ended
May 01, 2021
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 first quarter in fiscal 2021 and 2020 ended on May 1, 2021 and May 2, 2020, respectively.

Use of estimates

Use of estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the accounting period. Actual results could differ from those estimates. The Company considers its accounting policies relating to inventory valuations, vendor allowances, impairment of long-lived tangible and right-of-use assets, loyalty program and income taxes to be the most significant accounting policies that involve management estimates and judgments. Significant changes, if any, in those estimates and assumptions resulting from continuing changes in the economic environment, including those related to the impacts of the COVID-19 pandemic, will be reflected in the consolidated financial statements in future periods.

CARES Act

CARES Act

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was enacted. The CARES Act, among other things, includes provisions relating to refundable payroll taxes, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The most significant relief measures which the Company qualifies for are the employee retention credit, payroll tax deferral, and technical corrections to tax depreciation.

The Company recognizes government grants for which there is a reasonable assurance of compliance with grant conditions and receipt of credits. The Company believes there is a reasonable assurance that it will comply with the relevant conditions of the employee retention credit provision of the CARES Act and that it will receive the credit. The Company will continue to assess the treatment of the CARES Act to the extent additional guidance and regulations are issued, the further applicability of the CARES Act, and the potential impacts on the business.

Employee retention credit (ERC) and payroll tax deferral. The ERC allows for a refundable tax credit against certain employment taxes equal to 50% of the first ten thousand dollars in qualified wages paid to each employee commencing on March 13, 2020 through January 1, 2021 and 70% of the first ten thousand dollars, per quarter, in qualified wages paid to each employee commencing on January 1, 2021 through June 30, 2021. To be eligible, the Company must (i) have had operations fully or partially suspended because of a governmental order, or (ii) have had gross receipts decline by more than 50% in a calendar quarter in fiscal 2020 or 20% in a calendar quarter in fiscal 2021, when compared to the same quarter in 2019. Qualified wages are limited to wages paid to employees who were not providing services due to the COVID-19 pandemic. During the 13 weeks ended May 1, 2021, there was $2,339 related to the ERC recognized as a reduction of the associated costs within selling, general and administrative expenses on the consolidated statements of operations and within accounts receivable, net on the consolidated balance sheets. The receivable for the ERC was $54,744 as of May 1, 2021. There were no amounts related to the ERC recognized during the 13 weeks ended May 2, 2020, and there was no receivable for the ERC as of May 2, 2020.

Additionally, the CARES Act contains provisions for the deferral of the employer portion of social security taxes incurred through the end of calendar 2020. As of May 1, 2021, there was $43,845 of social security tax payments deferred, of which 50% are required to be remitted by December 2021 and the remaining 50% by December 2022. The deferred amounts are recorded within accrued liabilities on the consolidated balance sheets. There were no social security tax payments deferred as of May 2, 2020.

Impairment of long-lived tangible and right-of-use assets

Impairment of long-lived tangible and right-of-use assets

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

Significant estimates are used in determining future cash flows of each store over its remaining lease term including our expectations of future projected cash flows including revenues and operating expenses. An impairment loss is recorded if the carrying amount of the long-lived asset exceeds its fair value.

Long-lived tangible and right-of-use assets are evaluated for indicators of impairment quarterly or when events or changes in circumstances indicate that their carrying amounts may not be recoverable. An undiscounted cash flow analysis is performed over the asset group. Asset groups are written down only to the extent that their carrying value exceeds their respective fair value. Fair values of the asset group are determined by discounting the cash flows at a rate that approximates the cost of capital of a market participant. Management’s forecast of future cash flows is based on the income approach. The fair value of individual operating lease assets is determined under the market approach using estimated market rent assessments based on broker quotes.

The determination of fair value under the income approach requires assumptions including forecasts of future cash flows (such as revenue growth rates and operating expenses) and selection of a market-based discount rate. Estimates of market rent are based on non-binding broker quotes. As these inputs are unobservable, they are classified as Level 3 inputs under the fair value hierarchy (see Note 9, Fair value measurements”). If actual results are not consistent with estimates and assumptions used in estimating future cash flows and asset fair values, there may be exposure to additional impairment losses in a future period (see Note 4, “Impairment costs”).

Recent adopted accounting pronouncements

Recently adopted accounting pronouncements

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 Company adopted the

new guidance as of January 31, 2021, and its adoption had no impact on the Company’s consolidated financial position, results of operations, or cash flows. 

v3.21.1
Revenue (Tables)
3 Months Ended
May 01, 2021
Revenue  
Schedule of approximate percentage of net sales by primary category

13 Weeks Ended  

May 1,

May 2,

(Percentage of net sales)

2021

2020

Cosmetics (1)

45%

50%

Skincare

19%

17%

Haircare products and styling tools

19%

18%

Fragrance and bath

11%

7%

Services

3%

4%

Accessories and other (1)

3%

4%

100%

100%

Summary of changes in deferred revenue

May 1,

May 2,

(In thousands)

2021

    

2020

Beginning balance

$

269,032

$

230,011

Additions to contract liabilities (1)

97,681

41,636

Deductions to contract liabilities (2)

(113,541)

(64,994)

Ending balance

$

253,172

$

206,653

(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.
v3.21.1
Leases (Tables)
3 Months Ended
May 01, 2021
Leases  
Schedule of cash flow information related to operating leases

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

    

13 Weeks Ended

May 1,

May 2,

(In thousands)

    

2021

2020

Cash paid for operating lease liabilities (1)

$

90,227

$

87,434

Operating lease assets obtained in exchange for operating lease liabilities (non-cash)

51,883

119,371

(1)Excludes $7,986 and $12,075 related to cash received for tenant incentives for the 13 weeks ended May 1, 2021 and May 2, 2020, respectively.
v3.21.1
Stock-based compensation (Tables)
3 Months Ended
May 01, 2021
Stock-based compensation  
Schedule of weighted average assumptions to determine grant date fair value of employee stock options

13 Weeks Ended

May 1,

May 2,

    

2021

    

2020

Volatility rate

 

46.9%

43.0%

Average risk-free interest rate

 

0.4%

0.3%

Average expected life (in years)

 

3.9

 

3.4

Dividend yield

 

None

 

None

v3.21.1
Net income (loss) per common share (Tables)
3 Months Ended
May 01, 2021
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 1,

May 2,

(In thousands, except per share data)

    

2021

    

2020

Numerator:

Net income (loss)

    

$

230,289

$

(78,509)

Denominator:

Weighted-average common shares – Basic

55,795

56,419

Dilutive effect of stock options and non-vested stock

377

Weighted-average common shares – Diluted

56,172

56,419

Net income (loss) per common share:

Basic

$

4.13

$

(1.39)

Diluted

$

4.10

$

(1.39)

v3.21.1
Share repurchase program (Tables)
3 Months Ended
May 01, 2021
Share repurchase program  
Summary of the Company's common stock repurchase activity

13 Weeks Ended  

May 1,

May 2,

(In thousands)

2021

    

2020

Shares repurchased

1,243

327

Total cost of shares repurchased

$

392,309

$

72,981

v3.21.1
Business and basis of presentation (Details)
May 01, 2021
store
state
Stores by state  
Number of stores operated 1,290
Number of states in which entity operates | state 50
Alabama  
Stores by state  
Number of stores operated 23
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 161
Colorado  
Stores by state  
Number of stores operated 26
Connecticut  
Stores by state  
Number of stores operated 18
Delaware  
Stores by state  
Number of stores operated 3
Florida  
Stores by state  
Number of stores operated 90
Georgia  
Stores by state  
Number of stores operated 39
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 11
Kansas  
Stores by state  
Number of stores operated 13
Kentucky  
Stores by state  
Number of stores operated 15
Louisiana  
Stores by state  
Number of stores operated 18
Maine  
Stores by state  
Number of stores operated 3
Maryland  
Stores by state  
Number of stores operated 27
Massachusetts  
Stores by state  
Number of stores operated 23
Michigan  
Stores by state  
Number of stores operated 49
Minnesota  
Stores by state  
Number of stores operated 19
Mississippi  
Stores by state  
Number of stores operated 10
Missouri  
Stores by state  
Number of stores operated 25
Montana  
Stores by state  
Number of stores operated 6
Nebraska  
Stores by state  
Number of stores operated 5
Nevada  
Stores by state  
Number of stores operated 15
New Hampshire  
Stores by state  
Number of stores operated 8
New Jersey  
Stores by state  
Number of stores operated 43
New Mexico  
Stores by state  
Number of stores operated 7
New York  
Stores by state  
Number of stores operated 50
North Carolina  
Stores by state  
Number of stores operated 36
North Dakota  
Stores by state  
Number of stores operated 3
Ohio  
Stores by state  
Number of stores operated 45
Oklahoma  
Stores by state  
Number of stores operated 21
Oregon  
Stores by state  
Number of stores operated 17
Pennsylvania  
Stores by state  
Number of stores operated 44
Rhode Island  
Stores by state  
Number of stores operated 3
South Carolina  
Stores by state  
Number of stores operated 22
South Dakota  
Stores by state  
Number of stores operated 3
Tennessee  
Stores by state  
Number of stores operated 27
Texas  
Stores by state  
Number of stores operated 118
Utah  
Stores by state  
Number of stores operated 14
Vermont  
Stores by state  
Number of stores operated 1
Virginia  
Stores by state  
Number of stores operated 30
Washington  
Stores by state  
Number of stores operated 34
West Virginia  
Stores by state  
Number of stores operated 7
Wisconsin  
Stores by state  
Number of stores operated 20
Wyoming  
Stores by state  
Number of stores operated 3
v3.21.1
Summary of significant accounting policies (Details)
3 Months Ended
May 01, 2021
May 02, 2020
Summary of significant accounting policies    
Fiscal period 91 days 91 days
v3.21.1
Summary of significant accounting policies - CARES Act (Details) - USD ($)
$ in Thousands
3 Months Ended
May 01, 2021
May 02, 2020
Summary of significant accounting policies    
Amount of receivable related to employee retention credit $ 54,744 $ 0
Amount of receivable recognized related to employee retention credit 2,339 0
Deferred social security tax payments $ 43,845 $ 0
v3.21.1
Revenue - Disaggregated revenue (Details) - Sales Revenue
3 Months Ended
May 01, 2021
May 02, 2020
Disaggregated revenue    
Concentration (as a percent) 100.00% 100.00%
Cosmetics    
Disaggregated revenue    
Concentration (as a percent) 45.00% 50.00%
Skincare    
Disaggregated revenue    
Concentration (as a percent) 19.00% 17.00%
Haircare products and styling tools    
Disaggregated revenue    
Concentration (as a percent) 19.00% 18.00%
Fragrance and bath    
Disaggregated revenue    
Concentration (as a percent) 11.00% 7.00%
Services    
Disaggregated revenue    
Concentration (as a percent) 3.00% 4.00%
Accessories and other    
Disaggregated revenue    
Concentration (as a percent) 3.00% 4.00%
v3.21.1
Revenue - Deferred revenue (Details) - USD ($)
$ in Thousands
3 Months Ended
May 01, 2021
May 02, 2020
Summary of changes in deferred revenue    
Balance at beginning of period $ 269,032 $ 230,011
Additions to contract liabilities 97,681 41,636
Deductions to contract liabilities (113,541) (64,994)
Balance at end of period 253,172 206,653
Other amounts included in deferred revenue $ 16,918 $ 9,677
v3.21.1
Impairment costs - (Details) - USD ($)
$ in Thousands
3 Months Ended
May 01, 2021
May 02, 2020
Impairment costs    
Impairment of long-lived tangible and right-of-use assets $ 0 $ 19,542
v3.21.1
Goodwill and Other Intangible Assets (Details) - USD ($)
$ in Thousands
3 Months Ended
May 01, 2021
Jan. 30, 2021
May 02, 2020
Goodwill and Other Intangible Assets      
Goodwill $ 10,870 $ 10,870 $ 10,870
Additional goodwill recognized $ 0    
v3.21.1
Leases - (Details) - USD ($)
$ in Thousands
3 Months Ended
May 01, 2021
May 02, 2020
Leases    
Initial lease term 10 years  
Operating lease cost $ 78,736 $ 77,533
Cash paid for operating lease liabilities 90,227 87,434
Operating lease assets obtained in exchange for operating lease liabilities (non-cash) 51,883 119,371
Excluded cash received for tenant incentives $ 7,986 $ 12,075
v3.21.1
Debt (Details)
$ in Thousands
3 Months Ended
May 01, 2021
USD ($)
Jan. 30, 2021
USD ($)
May 02, 2020
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    
v3.21.1
Fair value measurements (Details) - USD ($)
$ in Thousands
May 01, 2021
Jan. 30, 2021
May 02, 2020
Level 2 | Non-qualified deferred compensation plan      
Fair value measurements      
Fair value of financial liabilities $ 35,449 $ 32,909 $ 23,330
v3.21.1
Investments (Details) - USD ($)
$ in Thousands
3 Months Ended
May 01, 2021
May 02, 2020
Jan. 30, 2021
Investments      
Short-term investments $ 0 $ 110,000 $ 0
Contributions of capital to equity method investments 0 5,386  
Investment tax credits 0 1,250  
Renewable energy projects      
Investments      
Equity method investments $ 3,247 $ 6,437 $ 3,174
v3.21.1
Stock-based compensation (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended
May 01, 2021
May 02, 2020
Stock options    
Weighted-average assumptions to estimate fair value    
Volatility rate (as a percent) 46.90% 43.00%
Average risk-free interest rate (as a percent) 0.40% 0.30%
Average expected life 3 years 10 months 24 days 3 years 4 months 24 days
Dividend yield (as a percent) 0.00% 0.00%
Granted (in shares) 61 248
Stock-based compensation expense $ 2,897 $ 2,475
Weighted-average grant date fair value of options granted (in dollars per share) $ 109.72 $ 54.40
Unrecognized compensation expense $ 20,470  
Restricted stock units    
Weighted-average assumptions to estimate fair value    
Stock-based compensation expense $ 4,835 $ 4,187
Granted (in shares) 52 152
Unrecognized compensation expense $ 36,761  
Performance-based restricted stock units    
Weighted-average assumptions to estimate fair value    
Granted (in shares) 46 0
Stock-based compensation expense $ 1,246 $ (480)
Unrecognized compensation expense $ 19,721