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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 other revenue sources such as the private label and co-branded credit card programs, deferred revenue related to the loyalty program and gift card breakage, royalties, and commissions.
Disaggregated revenue
The following table sets forth the approximate percentage of net sales by primary category:
|
|
|
|
|
|
|
13 Weeks Ended |
|
|
May 2, |
|
May 3, |
(Percentage of net sales) |
|
2026 |
|
2025 |
Cosmetics |
|
40% |
|
40% |
Skincare and wellness |
|
24% |
|
25% |
Haircare |
|
18% |
|
18% |
Fragrance |
|
12% |
|
11% |
Services |
|
4% |
|
4% |
Other |
|
2% |
|
2% |
|
|
100% |
|
100% |
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 weeks ended May 2, 2026 and May 3, 2025:
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|
|
|
|
|
|
|
|
13 Weeks Ended |
|
|
May 2, |
|
May 3, |
(In thousands) |
|
2026 |
|
2025 |
Beginning balance |
|
$ |
574,035 |
|
$ |
492,907 |
Additions to contract liabilities (1) |
|
|
167,485 |
|
|
164,054 |
Deductions to contract liabilities (2) |
|
|
(209,956) |
|
|
(201,701) |
Ending balance |
|
$ |
531,564 |
|
$ |
455,260 |
| (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.
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Other amounts included in deferred revenue were $9,635 and $7,583 at May 2, 2026 and May 3, 2025, respectively.
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