Item 6. Selected Financial Data

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Item 6. Selected Financial Data

The following table presents our selected consolidated financial data. The table should be read in conjunction with Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Item 8, “Financial Statements and Supplementary Data,” of this Annual Report on Form 10-K.


	Fiscal year ended(1)
	January 28, 2017			January 30, 2016			January 31, 2015			February 1, 2014			February 2, 2013
	(In thousands, except per share and per square foot data)
Income statement:
Net sales(2)	$	4,854,737		$	3,924,116		$	3,241,369		$	2,670,573		$	2,220,256
Cost of sales		3,107,508			2,539,783			2,104,582			1,729,325			1,436,582

Gross profit		1,747,229			1,384,333			1,136,787			941,248			783,674
Selling, general and administrative expenses		1,073,834			863,354			712,006			596,390			488,880
Pre-opening expenses		18,571			14,682			14,366			17,270			14,816

Operating income		654,824			506,297			410,415			327,588			279,978
Interest (income) expense, net		(890	)		(1,143	)		(894	)		(118	)		185

Income before income taxes		655,714			507,440			411,309			327,706			279,793
Income tax expense		245,954			187,432			154,174			124,857			107,244

Net income	$	409,760		$	320,008		$	257,135		$	202,849		$	172,549

Net income per common share:
Basic	$	6.55		$	5.00		$	4.00		$	3.17		$	2.73
Diluted	$	6.52		$	4.98		$	3.98		$	3.15		$	2.68
Weighted average common shares outstanding:
Basic		62,519			63,949			64,335			63,992			63,250
Diluted		62,851			64,275			64,651			64,461			64,396
Dividends declared per common share	$	—		$	—		$	—		$	—		$	1.00
Other operating data:
Comparable sales increase:(3)
Retail and salon comparable sales		13.4	%		10.0	%		8.1	%		6.1	%		8.8	%
E-commerce comparable sales		56.2	%		47.5	%		56.4	%		76.6	%		30.7	%

Total comparable sales increase		15.8	%		11.8	%		9.9	%		7.9	%		9.3	%
Number of stores end of year		974			874			774			675			550
Total square footage end of year		10,271,184			9,225,957			8,182,404			7,158,286			5,847,393
Total square footage per store(4)		10,545			10,556			10,572			10,605			10,632
Average total square footage(5)		9,641,367			8,724,581			7,690,742			6,555,960			5,315,653
Retail sales per average total square foot(6)	$	468		$	424		$	402		$	393		$	407
Capital expenditures		373,747			299,167			249,067			226,024			188,578
Depreciation and amortization		210,295			165,049			131,764			106,283			88,233
Repurchase of common shares		344,275			167,396			39,923			37,337			—
Balance sheet data:
Cash and cash equivalents	$	385,010		$	345,840		$	389,149		$	419,476		$	320,475
Short-term investments		30,000			130,000			150,209			—			—
Working capital(7)		1,006,894			978,946			900,761			735,886			568,257
Property and equipment, net		1,004,358			847,600			717,159			595,736			483,059
Total assets		2,551,878			2,230,918			1,983,170			1,602,727			1,275,249
Total stockholders’ equity		1,550,218			1,442,886			1,247,509			1,003,094			786,942

(1)	Our fiscal year-end is the Saturday closest to January 31 based on a 52/53-week year. Each fiscal year consists of four 13-week quarters, with an extra week added onto the fourth quarter every five or six years.

(2)	Fiscal 2012 was a 53-week operating year. The sales for the 53rd week of fiscal 2012 were approximately $55 million.

(3)	Comparable sales increase reflects sales for stores beginning on the first day of the 14th month of operation. Remodeled stores are included in comparable sales unless the store was closed for a portion of the current or comparable prior year.

(4)	Total square footage per store is calculated by dividing total square footage at end of year by number of stores at end of year.

(5)	Average total square footage represents a weighted average, which reflects the effect of opening stores in different months throughout the year.

(6)

Retail sales per average total square foot was calculated, for all years presented, by dividing net sales, excluding e-commerce sales, for the year by the average square footage for those stores open during each year. In prior years we calculated this metric using total net sales, including e-commerce sales. The Company believes that excluding e-commerce sales more appropriately reflects the Company’s retail store productivity. Net sales per average square foot calculated using total net sales, including e-commerce sales, would have been $504, $450, $421, $407, and $418, for fiscal years 2016, 2015, 2014, 2013 and 2012, respectively. The sales for the 53rd week of fiscal 2012 were approximately $55 million.

(7)	The Company prospectively adopted Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes, in the fourth quarter of fiscal 2015. As a result of this adoption, at January 28, 2017 and January 30, 2016, current deferred tax assets were classified as non-current liabilities.

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Item 6. Selected Financial Data

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