| Segment reporting |
13. Segment reporting
The Company has one reportable segment, which includes retail stores, salon services, and e-commerce. Within the reportable segment, there are significant expense categories included in the measure of the segment’s net income as shown below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended |
|
26 Weeks Ended |
|
|
|
August 1, |
|
August 2, |
|
August 1, |
|
August 2, |
|
(In thousands) |
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
Net sales |
|
$ |
3,035,676 |
|
$ |
2,788,469 |
|
$ |
6,199,533 |
|
$ |
5,636,836 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (1) |
|
|
1,848,724 |
|
|
1,696,773 |
|
|
3,744,961 |
|
|
3,430,921 |
|
Associate expenses (2) |
|
|
436,860 |
|
|
407,579 |
|
|
874,878 |
|
|
794,729 |
|
Advertising expense, net (3) |
|
|
97,562 |
|
|
80,619 |
|
|
190,617 |
|
|
171,228 |
|
Pre-opening expenses |
|
|
4,527 |
|
|
5,105 |
|
|
9,192 |
|
|
6,934 |
|
Other segment expenses (1) (4) |
|
|
268,362 |
|
|
253,539 |
|
|
551,988 |
|
|
486,393 |
|
Interest expense (income), net |
|
|
3,684 |
|
|
(1,413) |
|
|
3,032 |
|
|
(4,960) |
|
Income tax expense |
|
|
91,878 |
|
|
84,795 |
|
|
198,738 |
|
|
184,439 |
|
Equity net loss of affiliate |
|
|
2,073 |
|
|
597 |
|
|
3,652 |
|
|
1,225 |
|
Net income |
|
$ |
282,006 |
|
$ |
260,875 |
|
$ |
622,475 |
|
$ |
565,927 |
|
|
(1) |
Included within cost of sales and other segment expenses is depreciation and amortization expense of $81,325 and $71,165 for the 13 weeks ended August 1, 2026 and August 2, 2025, respectively, and $162,724 and $143,198 for the 26 weeks ended August 1, 2026 and August 2, 2025, respectively. |
|
(2) |
Associate expenses include salaries, wages, bonus, and other forms of compensation related to associates. |
|
(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. |
(4) Other segment expenses include other corporate overhead and store operating expenses within SG&A expenses.
|