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3.Revenue
Net sales include retail stores and e-commerce merchandise sales as well as salon services and other revenue. Other revenue includes the private label and co-branded credit card programs, royalties derived from the partnership with Target Corporation, and 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:
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|
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|
|
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|
|
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13 Weeks Ended |
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26 Weeks Ended |
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|
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August 2, |
|
August 3, |
|
August 2, |
|
August 3, |
|
(Percentage of net sales) |
|
2025 (1) |
|
2024 |
|
2025 (1) |
|
2024 |
|
Cosmetics |
|
38% |
|
39% |
|
39% |
|
40% |
|
Skincare and wellness |
|
25% |
|
24% |
|
25% |
|
24% |
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Haircare |
|
19% |
|
20% |
|
19% |
|
19% |
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Fragrance |
|
12% |
|
11% |
|
11% |
|
11% |
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Services |
|
4% |
|
4% |
|
4% |
|
4% |
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Other |
|
2% |
|
2% |
|
2% |
|
2% |
|
|
|
100% |
|
100% |
|
100% |
|
100% |
|
(1)Excludes the impact of Space NK Limited (Space NK) net sales for the 13 and 26 weeks ended August 2, 2025.
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 loyalty points and unredeemed 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 and 26 weeks ended August 2, 2025 and August 3, 2024:
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|
|
|
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13 Weeks Ended |
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26 Weeks Ended |
|
|
August 2, |
|
August 3, |
|
August 2, |
|
August 3, |
(In thousands) |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
Beginning balance |
|
$ |
455,260 |
|
$ |
391,446 |
|
$ |
492,907 |
|
$ |
428,788 |
Additions to contract liabilities (1) |
|
|
123,639 |
|
|
120,189 |
|
|
286,294 |
|
|
253,584 |
Deductions to contract liabilities (2) |
|
|
(126,931) |
|
|
(123,818) |
|
|
(327,233) |
|
|
(294,555) |
Ending balance |
|
$ |
451,968 |
|
$ |
387,817 |
|
$ |
451,968 |
|
$ |
387,817 |
| (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 $8,219 and $7,170 at August 2, 2025 and August 3, 2024, respectively.
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