| Schedule of significant expense categories included in the measure of the segment's net income |
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Fiscal Year Ended |
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January 31, |
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February 1, |
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February 3, |
(In thousands) |
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2026 |
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2025 |
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2024 |
Net sales |
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$ |
12,392,820 |
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$ |
11,295,654 |
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$ |
11,207,303 |
Less: |
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Cost of sales (1) |
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7,547,596 |
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6,908,401 |
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6,826,203 |
Associate expenses (2) |
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1,714,677 |
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1,459,231 |
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1,391,175 |
Advertising expense, net (3) |
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490,980 |
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431,455 |
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422,779 |
Pre-opening expenses |
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15,821 |
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13,689 |
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8,510 |
Other segment expenses (1) (4) |
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1,090,754 |
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917,906 |
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880,607 |
Interest expense (income), net |
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1,787 |
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(15,094) |
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(17,622) |
Income tax expense |
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373,869 |
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378,948 |
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404,646 |
Equity net loss of affiliate |
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3,857 |
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— |
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— |
Net income |
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$ |
1,153,479 |
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$ |
1,201,118 |
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$ |
1,291,005 |
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(1) |
Included within cost of sales and other segment expenses is depreciation and amortization expense of $300,772, $267,042, and $243,840 is fiscal years 2025, 2024, and 2023, respectively, as described in Note 2, “Summary of significant accounting policies.”
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(2) |
Associate expenses include salaries, wages, bonus, and other forms of compensation related to associates as described in Note 2, “Summary of significant accounting policies.” |
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(3) |
Advertising expense, net consists of print, digital and social media, and television and radio advertising, net of vendor income that is a reimbursement of specific, incremental, and identifiable costs as described in Note 2, “Summary of significant accounting policies.” |
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(4) |
Other segment expenses include other corporate overhead and store operating expenses within SG&A expenses as described in Note 2, “Summary of significant accounting policies.” |
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