| Schedule of significant expense categories regularly provided to the CODM and included in the measure of the segment's net income |
Within the reportable segment, there are significant expense categories regularly provided to the CODM and included in the measure of the segment’s net income as shown below:
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal year ended |
|
|
February 1, |
|
February 3, |
|
January 28, |
(In thousands, except per share data) |
|
2025 |
|
2024 |
|
2023 |
Net sales |
|
$ |
11,295,654 |
|
$ |
11,207,303 |
|
$ |
10,208,580 |
Less: |
|
|
|
|
|
|
|
|
|
Cost of sales (1) |
|
|
6,908,401 |
|
|
6,826,203 |
|
|
6,164,070 |
Associate expenses (2) |
|
|
1,459,231 |
|
|
1,391,175 |
|
|
1,264,139 |
Advertising expense, net (3) |
|
|
431,455 |
|
|
422,779 |
|
|
374,730 |
Pre-opening expenses |
|
|
13,689 |
|
|
8,510 |
|
|
10,601 |
Other segment expenses (1) (4) |
|
|
917,906 |
|
|
880,607 |
|
|
756,430 |
Interest income, net |
|
|
(15,094) |
|
|
(17,622) |
|
|
(4,934) |
Income tax expense |
|
|
378,948 |
|
|
404,646 |
|
|
401,136 |
Net income |
|
$ |
1,201,118 |
|
$ |
1,291,005 |
|
$ |
1,242,408 |
|
(1) |
Included within cost of sales and other segment expenses is depreciation and amortization expense of $267,042, $243,840, and $241,372 is fiscal years 2024, 2023, and 2022, respectively, as described in Note 2, “Summary of significant accounting policies.”
|
|
(2) |
Associate expenses include salaries, wages, bonus, and other forms of compensation related to associates as described in Note 2, “Summary of significant accounting policies.” |
|
(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 as described in Note 2, “Summary of significant accounting policies.” |
|
(4) |
Other segment expenses include other corporate overhead and store operating expenses within SG&A expenses as described in Note 2, “Summary of significant accounting policies.” |
|