| Schedule of significant expense categories included in the measure of the segment's net income |
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13 Weeks Ended |
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26 Weeks Ended |
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August 1, |
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August 2, |
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August 1, |
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August 2, |
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(In thousands) |
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2026 |
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2025 |
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2026 |
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2025 |
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Net sales |
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$ |
3,035,676 |
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$ |
2,788,469 |
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$ |
6,199,533 |
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$ |
5,636,836 |
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Less: |
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Cost of sales (1) |
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1,848,724 |
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1,696,773 |
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3,744,961 |
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3,430,921 |
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Associate expenses (2) |
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436,860 |
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407,579 |
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874,878 |
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794,729 |
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Advertising expense, net (3) |
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97,562 |
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80,619 |
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190,617 |
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171,228 |
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Pre-opening expenses |
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4,527 |
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5,105 |
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9,192 |
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6,934 |
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Other segment expenses (1) (4) |
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268,362 |
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253,539 |
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551,988 |
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486,393 |
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Interest expense (income), net |
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3,684 |
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(1,413) |
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3,032 |
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(4,960) |
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Income tax expense |
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91,878 |
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84,795 |
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198,738 |
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184,439 |
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Equity net loss of affiliate |
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2,073 |
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|
597 |
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3,652 |
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1,225 |
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Net income |
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$ |
282,006 |
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$ |
260,875 |
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$ |
622,475 |
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$ |
565,927 |
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(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. |
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(2) |
Associate expenses include salaries, wages, bonus, and other forms of compensation related to associates. |
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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. |
(4) Other segment expenses include other corporate overhead and store operating expenses within SG&A expenses.
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