Quarterly report pursuant to Section 13 or 15(d)

Income taxes

Income taxes
3 Months Ended
May 04, 2024
Income Taxes  
Income taxes

10.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 $94,735 for the 13 weeks ended May 4, 2024 represents an effective tax rate of 23.2%, compared to $102,367 of income tax expense representing an effective tax rate of 22.8% for the 13 weeks ended April 29, 2023. The higher effective tax rate is primarily due to a reduced benefit from income tax accounting for stock-based compensation.

On August 16, 2022, the Inflation Reduction Act of 2022 was enacted into law, which, among other things, introduced a 15% corporate alternative minimum tax on book income of certain large corporations and created a 1% excise tax on net share repurchases. The corporate alternative minimum tax is effective beginning in fiscal 2024 and did not have a

material impact on the consolidated financial statements for the 13 weeks ended May 4, 2024. The excise tax applies to share repurchases made after December 31, 2022.