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)
February 3,
January 28,
January 30,
January 31,
February 1,
2018 (2)
2017
2016
2015
2014
(In thousands, except per share, square foot, and store count data)
Income statement:
Net sales (2)
$
5,884,506
$
4,854,737
$
3,924,116
$
3,241,369
$
2,670,573
Cost of sales
3,787,697
3,107,508
2,539,783
2,104,582
1,729,325
Gross profit
2,096,809
1,747,229
1,384,333
1,136,787
941,248
Selling, general and administrative expenses
1,287,232
1,073,834
863,354
712,006
596,390
Pre-opening expenses
24,286
18,571
14,682
14,366
17,270
Operating income
785,291
654,824
506,297
410,415
327,588
Interest income, net
(1,568)
(890)
(1,143)
(894)
(118)
Income before income taxes
786,859
655,714
507,440
411,309
327,706
Income tax expense (3)
231,625
245,954
187,432
154,174
124,857
Net income
$
555,234
$
409,760
$
320,008
$
257,135
$
202,849
Net income per common share:
Basic
$
9.02
$
6.55
$
5.00
$
4.00
$
3.17
Diluted
$
8.96
$
6.52
$
4.98
$
3.98
$
3.15
Weighted average common shares outstanding:
Basic
61,556
62,519
63,949
64,335
63,992
Diluted
61,975
62,851
64,275
64,651
64,461
Other operating data:
Comparable sales increase: (4)
Retail and salon comparable sales
7.1%
13.4%
10.0%
8.1%
6.1%
E-commerce comparable sales
59.9%
56.2%
47.5%
56.4%
76.6%
Total comparable sales increase
11.0%
15.8%
11.8%
9.9%
7.9%
Number of stores end of year
1,074
974
874
774
675
Total square footage end of year
11,300,920
10,271,184
9,225,957
8,182,404
7,158,286
Total square footage per store (5)
10,522
10,545
10,556
10,572
10,605
Average total square footage (6)
10,742,874
9,641,367
8,724,581
7,690,742
6,555,960
Retail sales per average total square foot (7)
$
548
$
504
$
450
$
421
$
407
Capital expenditures
440,714
373,747
299,167
249,067
226,024
Depreciation and amortization
252,713
210,295
165,049
131,764
106,283
Repurchase of common shares
367,581
344,275
167,396
39,923
37,337
Balance sheet data:
Cash and cash equivalents
$
277,445
$
385,010
$
345,840
$
389,149
$
419,476
Short-term investments
120,000
30,000
130,000
150,209
–
Working capital (8)
1,051,577
1,006,894
978,946
900,761
735,886
Property and equipment, net
1,189,453
1,004,358
847,600
717,159
595,736
Total assets
2,908,687
2,551,878
2,230,918
1,983,170
1,602,727
Total stockholders' equity
1,774,217
1,550,218
1,442,886
1,247,509
1,003,094
(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 2017 includes 53 weeks; all other fiscal years reported include 52 weeks. Net sales for the 53rd week of fiscal 2017 were approximately $108.8 million.
(3)
Income tax expense of $231.6 million in fiscal 2017 represents an effective tax rate of 29.4% compared to fiscal 2016 tax expense of $246.0 million and an effective tax rate of 37.5%. On December 22, 2017, the Tax Cuts and Jobs Act was enacted into law. This new legislation reduced the federal corporate tax rate to 21.0% effective January 1, 2018. In accordance with Section 15 of the Internal Revenue Code, the Company will utilize a blended rate of 33.7% for the fiscal 2017 tax year, by applying a prorated percentage of the number of days prior to and subsequent to the January 1, 2018 effective date.
(4)
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.
(5)
Total square footage per store is calculated by dividing total square footage at end of year by number of stores at end of year.
(6)
Average total square footage represents a weighted average, which reflects the effect of opening stores in different months throughout the year.
(7)
Retail sales per average total square foot was calculated, for all years presented, by dividing net 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, excluding e-commerce sales. The Company believes that including e-commerce sales more appropriately reflects the Company’s productivity. Net sales per average square foot calculated using total net sales, excluding e-commerce sales, would have been $495, $468, $424, $402, and $393, for fiscal years 2017, 2016, 2015, 2014, and 2013, respectively.
(8)
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, current deferred tax assets were classified as non-current liabilities at February 3, 2018, January 28, 2017, and January 30, 2016.
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