DICK'S Sporting Goods (DKS) 10-Q23 Aug 232023 Q2 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	6 Months Ended
Cover Page - shares	Jul. 29, 2023	Aug. 18, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 29, 2023
Document Transition Report	false
Entity File Number	001-31463
Entity Registrant Name	DICK’S SPORTING GOODS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	16-1241537
Entity Address, Address Line One	345 Court Street
Entity Address, City or Town	Coraopolis
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	15108
City Area Code	724
Local Phone Number	273-3400
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	DKS
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001089063
Current Fiscal Year End Date	--02-03
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false
Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		61,452,503
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		23,570,633

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Income Statement [Abstract]
Net sales	$ 3,223,643	$ 3,112,419	$ 6,065,823	$ 5,812,624
Cost of goods sold, including occupancy and distribution costs	2,114,167	1,991,037	3,927,731	3,706,528
GROSS PROFIT	1,109,476	1,121,382	2,138,092	2,106,096
Selling, general and administrative expenses	775,590	657,368	1,469,494	1,272,661
Pre-opening expenses	22,127	3,836	31,216	6,736
INCOME FROM OPERATIONS	311,759	460,178	637,382	826,699
Interest expense	14,384	25,494	29,427	51,136
Other (income) expense	(28,499)	7,363	(46,206)	16,385
INCOME BEFORE INCOME TAXES	325,874	427,321	654,161	759,178
Provision for income taxes	81,543	108,819	105,181	180,117
NET INCOME	$ 244,331	$ 318,502	$ 548,980	$ 579,061
EARNINGS PER COMMON SHARE:
Basic (in dollars per share)	$ 2.90	$ 4.21	$ 6.57	$ 7.63
Diluted (in dollars per share)	$ 2.82	$ 3.25	$ 6.23	$ 5.70
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic (in shares)	84,142	75,610	83,607	75,895
Diluted (in shares)	86,783	100,389	88,224	104,509

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 244,331	$ 318,502	$ 548,980	$ 579,061
OTHER COMPREHENSIVE LOSS
Foreign currency translation adjustment, net of tax	68	4	(25)	(3)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	68	4	(25)	(3)
COMPREHENSIVE INCOME	$ 244,399	$ 318,506	$ 548,955	$ 579,058

CONSOLIDATED BALANCE SHEETS - U

CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) $ in Thousands	Jul. 29, 2023	Jan. 28, 2023	Jul. 30, 2022
CURRENT ASSETS:
Cash and cash equivalents	$ 1,901,903	$ 1,924,386	$ 1,895,521
Accounts receivable, net	139,842	71,286	83,151
Income taxes receivable	13,795	8,187	1,277
Inventories, net	2,851,366	2,830,917	2,995,963
Prepaid expenses and other current assets	115,138	128,410	100,761
Total current assets	5,022,044	4,963,186	5,076,673
Property and equipment, net	1,520,678	1,312,988	1,321,737
Operating lease assets	2,269,101	2,138,366	2,071,084
Intangible assets, net	62,993	60,364	85,553
Goodwill	250,503	245,857	245,857
Deferred income taxes	24,278	41,189	55,873
Other assets	207,767	230,246	208,498
TOTAL ASSETS	9,357,364	8,992,196	9,065,275
CURRENT LIABILITIES:
Accounts payable	1,320,662	1,206,066	1,489,321
Accrued expenses	597,740	508,573	503,759
Operating lease liabilities	499,189	546,755	482,195
Income taxes payable	52,699	29,624	12,673
Deferred revenue and other liabilities	305,389	350,428	294,003
Total current liabilities	2,775,679	2,641,446	2,781,951
LONG-TERM LIABILITIES:
Revolving credit borrowings	0	0	0
Senior notes due 2032 and 2052	1,482,794	1,482,336	1,481,886
Convertible senior notes due 2025	0	58,271	368,478
Long-term operating lease liabilities	2,276,037	2,117,773	2,096,410
Other long-term liabilities	178,493	167,747	163,041
Total long-term liabilities	3,937,324	3,826,127	4,109,815
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Additional paid-in capital	1,419,628	1,416,847	1,384,949
Retained earnings	5,255,787	4,878,404	4,493,516
Accumulated other comprehensive loss	(277)	(252)	(85)
Treasury stock, at cost	(4,031,615)	(3,771,197)	(3,705,629)
Total stockholders' equity	2,644,361	2,524,623	2,173,509
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	9,357,364	8,992,196	9,065,275
Common Stock
STOCKHOLDERS' EQUITY:
Common stock	602	585	522
Class B Common Stock
STOCKHOLDERS' EQUITY:
Common stock	$ 236	$ 236	$ 236

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - UNAUDITED - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock Common Stock	Common Stock Class B Common Stock	Additional Paid-In Capital	Additional Paid-In Capital Cumulative Effect, Period of Adoption, Adjustment	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive (Loss) Income	Treasury Stock
BALANCE at Jan. 29, 2022	$ 2,101,586	$ (84,729)	$ 520	$ 236	$ 1,488,834	$ (118,961)	$ 3,956,602	$ 34,232	$ (82)	$ (3,344,524)
BALANCE (in shares) at Jan. 29, 2022			51,989,000	23,621,000
Increase (Decrease) in Stockholders' Equity
Net shares issued in connection with the exchange of convertible senior notes due 2025 and partial unwind of convertible bond hedge and warrants			1,833,000
Exchange of convertible senior notes due 2025 and partial unwind of convertible bond hedge and warrants	3,811		$ 18		3,793
Exercise of stock options (in shares)			389,000
Exercise of stock options	12,665		$ 4		12,661
Restricted stock vested (in shares)			933,000
Restricted stock vested	0		$ 9		(9)
Minimum tax withholding requirements (in shares)			(332,000)
Minimum tax withholding requirements	(33,287)		$ (3)		(33,284)
Net income	260,559						260,559
Stock-based compensation	15,177				15,177
Foreign currency translation adjustment, net of taxes	(7)								(7)
Purchase of shares for treasury (in shares)			(417,000)
Purchase of shares for treasury	(42,227)		$ (4)							(42,223)
Dividends, Common Stock, Cash	(38,942)						(38,942)
BALANCE at Apr. 30, 2022	2,194,606		$ 544	$ 236	1,368,211		4,212,451		(89)	(3,386,747)
BALANCE (in shares) at Apr. 30, 2022			54,395,000	23,621,000
Increase (Decrease) in Stockholders' Equity
Foreign currency translation adjustment, taxes	$ 2
Cash dividend declared per share (in dollars per share)	$ 0.4875
BALANCE at Jan. 29, 2022	$ 2,101,586	$ (84,729)	$ 520	$ 236	1,488,834	$ (118,961)	3,956,602	$ 34,232	(82)	(3,344,524)
BALANCE (in shares) at Jan. 29, 2022			51,989,000	23,621,000
Increase (Decrease) in Stockholders' Equity
Net income	579,061
BALANCE at Jul. 30, 2022	2,173,509		$ 522	$ 236	1,384,949		4,493,516		(85)	(3,705,629)
BALANCE (in shares) at Jul. 30, 2022			52,211,000	23,621,000
BALANCE at Apr. 30, 2022	2,194,606		$ 544	$ 236	1,368,211		4,212,451		(89)	(3,386,747)
BALANCE (in shares) at Apr. 30, 2022			54,395,000	23,621,000
Increase (Decrease) in Stockholders' Equity
Net shares issued in connection with the exchange of convertible senior notes due 2025 and partial unwind of convertible bond hedge and warrants			1,675,000
Exchange of convertible senior notes due 2025 and partial unwind of convertible bond hedge and warrants	5,767		$ 17		5,750
Exercise of stock options (in shares)			52,000
Exercise of stock options	1,332		$ 1		1,331
Restricted stock vested (in shares)			47,000
Restricted stock vested	0		$ 0		0
Minimum tax withholding requirements (in shares)			(13,000)
Minimum tax withholding requirements	(1,860)		$ 0		(1,860)
Net income	318,502						318,502
Stock-based compensation	11,517				11,517
Foreign currency translation adjustment, net of taxes	4								4
Purchase of shares for treasury (in shares)			(3,945,000)
Purchase of shares for treasury	(318,922)		$ (40)							(318,882)
Dividends, Common Stock, Cash	(37,437)						(37,437)
BALANCE at Jul. 30, 2022	2,173,509		$ 522	$ 236	1,384,949		4,493,516		(85)	(3,705,629)
BALANCE (in shares) at Jul. 30, 2022			52,211,000	23,621,000
Increase (Decrease) in Stockholders' Equity
Foreign currency translation adjustment, taxes	$ (1)
Cash dividend declared per share (in dollars per share)	$ 0.4875
BALANCE at Jan. 28, 2023	$ 2,524,623		$ 585	$ 236	1,416,847		4,878,404		(252)	(3,771,197)
BALANCE (in shares) at Jan. 28, 2023			58,547,000	23,571,000
Increase (Decrease) in Stockholders' Equity
Retirement of convertible senior notes due 2025 and termination of convertible bond hedge and warrants	58,472		$ 17		58,455
Retirement of convertible senior notes due 2025 and termination of convertible bond hedge and warrants (in shares)			1,723,000
Exercise of stock options (in shares)			485,000
Exercise of stock options	12,370		$ 5		12,365
Restricted stock vested (in shares)			1,983,000
Restricted stock vested	0		$ 20		(20)
Minimum tax withholding requirements (in shares)			(668,000)
Minimum tax withholding requirements	(94,695)		$ (6)		(94,689)
Net income	304,649						304,649
Stock-based compensation	12,809				12,809
Foreign currency translation adjustment, net of taxes	(93)								(93)
Purchase of shares for treasury (in shares)			(418,000)
Purchase of shares for treasury	(57,701)		$ (4)							(57,697)
Dividends, Common Stock, Cash	(86,264)						(86,264)
BALANCE at Apr. 29, 2023	2,674,170		$ 617	$ 236	1,405,767		5,096,789		(345)	(3,828,894)
BALANCE (in shares) at Apr. 29, 2023			61,652,000	23,571,000
Increase (Decrease) in Stockholders' Equity
Foreign currency translation adjustment, taxes	$ 30
Cash dividend declared per share (in dollars per share)	$ 1
BALANCE at Jan. 28, 2023	$ 2,524,623		$ 585	$ 236	1,416,847		4,878,404		(252)	(3,771,197)
BALANCE (in shares) at Jan. 28, 2023			58,547,000	23,571,000
Increase (Decrease) in Stockholders' Equity
Net income	548,980
BALANCE at Jul. 29, 2023	2,644,361		$ 602	$ 236	1,419,628		5,255,787		(277)	(4,031,615)
BALANCE (in shares) at Jul. 29, 2023			60,183,000	23,571,000
BALANCE at Apr. 29, 2023	2,674,170		$ 617	$ 236	1,405,767		5,096,789		(345)	(3,828,894)
BALANCE (in shares) at Apr. 29, 2023			61,652,000	23,571,000
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)			53,000
Exercise of stock options	961		$ 0		961
Restricted stock vested (in shares)			64,000
Restricted stock vested	0		$ 1		(1)
Minimum tax withholding requirements (in shares)			(16,000)
Minimum tax withholding requirements	(2,296)		$ 0		(2,296)
Net income	244,331						244,331
Stock-based compensation	15,197				15,197
Foreign currency translation adjustment, net of taxes	68								68
Purchase of shares for treasury (in shares)			(1,570,000)
Purchase of shares for treasury	(202,737)		$ (16)							(202,721)
Dividends, Common Stock, Cash	(85,333)						(85,333)
BALANCE at Jul. 29, 2023	2,644,361		$ 602	$ 236	$ 1,419,628		$ 5,255,787		$ (277)	$ (4,031,615)
BALANCE (in shares) at Jul. 29, 2023			60,183,000	23,571,000
Increase (Decrease) in Stockholders' Equity
Foreign currency translation adjustment, taxes	$ (22)
Cash dividend declared per share (in dollars per share)	$ 1

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands	6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 548,980	$ 579,061
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	168,900	164,269
Amortization of deferred financing fees and debt discount	1,210	2,601
Deferred income taxes	16,911	8,416
Stock-based compensation	28,006	26,694
Other, net	(1,464)	6,852
Changes in assets and liabilities:
Accounts receivable	(30,311)	(28,971)
Inventories	16,254	(698,354)
Prepaid expenses and other assets	(10,088)	(9,430)
Accounts payable	14,404	189,082
Accrued expenses	14,004	(90,127)
Income taxes payable / receivable	17,671	877
Construction allowances provided by landlords	30,995	29,273
Deferred revenue and other liabilities	(35,648)	(35,280)
Operating lease assets and liabilities	(86,331)	(43,219)
Net cash provided by operating activities	693,493	101,744
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(248,560)	(167,693)
Proceeds from sale of other assets	27,500	14,261
Other investing activities	(47,719)	(17,580)
Net cash used in investing activities	(268,779)	(171,012)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal paid in connection with exchange of convertible senior notes due 2025	(137)	(200,000)
Payments on finance lease obligations	(401)	(361)
Proceeds from exercise of stock options	13,332	13,997
Minimum tax withholding requirements	(96,992)	(35,147)
Cash paid for treasury stock	(260,438)	(392,882)
Cash dividends paid to stockholders	(189,110)	(82,937)
Increase in bank overdraft	86,574	18,917
Net cash used in financing activities	(447,172)	(678,413)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(25)	(3)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(22,483)	(747,684)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	1,924,386	2,643,205
CASH AND CASH EQUIVALENTS, END OF PERIOD	1,901,903	1,895,521
Supplemental disclosure of cash flow information:
Accrued property and equipment	101,289	40,955
Cash paid for interest	27,704	38,406
Cash paid for income taxes	75,320	172,212
Accrued treasury stock	$ 0	$ 6,501

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - UNAUDITED - Parentheticals - USD ($) $ in Thousands	3 Months Ended
	Jul. 29, 2023	Apr. 29, 2023	Jul. 30, 2022	Apr. 30, 2022
Statement of Stockholders' Equity [Abstract]
Foreign currency translation adjustment, taxes	$ (22)	$ 30	$ (1)	$ 2
Cash dividend declared per share (in dollars per share)	$ 1	$ 1	$ 0.4875	$ 0.4875

Description of Business and Bas

Description of Business and Basis of Presentation	6 Months Ended
Description of Business and Basis of Presentation	Jul. 29, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation DICK’S Sporting Goods, Inc. (together with its subsidiaries, referred to as “the Company”, “we”, “us” and “our” unless specified otherwise) is a leading omni-channel sporting goods retailer offering an extensive assortment of authentic, high-quality sports equipment, apparel, footwear and accessories through a blend of dedicated teammates, in-store services and unique specialty shop-in-shops. In addition to DICK’S Sporting Goods stores, the Company also owns and operates Golf Galaxy, Public Lands, Moosejaw and Going Going Gone! specialty concept stores, and offers its products both online and through its mobile apps. The Company also owns and operates DICK’S House of Sport and Golf Galaxy Performance Center, as well as GameChanger, a youth sports mobile app for scheduling, communications, live scorekeeping and video streaming. When used in this Quarterly Report on Form 10-Q, unless the context otherwise requires or otherwise specifies, any reference to “year” is to the Company’s fiscal year. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the requirements for Quarterly Reports on Form 10-Q and do not include all the disclosures normally required in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The interim consolidated financial statements are unaudited and have been prepared on the same basis as the annual audited consolidated financial statements. In the opinion of management, such unaudited consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the interim financial information. The unaudited interim financial information should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended January 28, 2023 as filed with the Securities and Exchange Commission on March 23, 2023. Operating results for the 13 and 26 weeks ended July 29, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending February 3, 2024 or any other period. Recently Adopted Accounting Pronouncement Supplier Finance Programs In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04, “Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” which requires that a buyer in a supplier finance program disclose the key terms of the programs along with information about obligations outstanding, including a roll-forward of those obligations. The Company adopted this ASU during the first quarter of fiscal 2023. The adoption did not have a significant impact on the Company’s financial condition, results of operations, cash flows or disclosures. The Company has entered into supply chain financing arrangements with third-party financial institutions, whereby suppliers have the opportunity to settle outstanding payment obligations early at a discount. The Company does not have an economic interest in suppliers’ voluntary participation and the Company does not provide any guarantees or pledge assets under these arrangements. The Company settles invoices with the third-party financial institutions in accordance with the original supplier payment terms. The Company’s rights and obligations to its suppliers, including amounts due and scheduled payment terms, are not impacted by these arrangements. Liabilities associated with the funded participation in these arrangements, which are presented within accounts payable

Earnings Per Common Share

Earnings Per Common Share	6 Months Ended
Earnings Per Common Share	Jul. 29, 2023
Earnings Per Share [Abstract]
Earnings Per Common Share	Earnings Per Common ShareBasic earnings per common share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed based on the weighted average number of shares of common stock outstanding, plus the effect of dilutive potential common shares, which include stock-based awards, such as restricted stock and stock options, and shares the Company could have been obligated to issue from its convertible senior notes due 2025 (“Convertible Senior Notes”) and warrants prior to their retirement in the first quarter of fiscal 2023. Dilutive potential common shares for the Company’s stock-based awards and warrants are determined using the treasury stock method, while the dilutive effect of the Convertible Senior Notes on the Company’s diluted earnings per common share was calculated using the “if-converted method.” Dilutive potential common shares are excluded from the computation of earnings per share if their effect is anti-dilutive. The computations for basic and diluted earnings per common share were as follows for the periods presented ( in thousands, except per share data) : 13 Weeks Ended 26 Weeks Ended July 29, July 30, July 29, July 30, Numerator: Numerator for basic earnings per common share - Net income $ 244,331 $ 318,502 $ 548,980 $ 579,061 Effect of dilutive securities Interest expense associated with Convertible Senior Notes, net of tax — 7,992 337 16,201 Numerator for diluted earnings per common share - Net income after the effect of dilutive securities $ 244,331 $ 326,494 $ 549,317 $ 595,262 Denominator: Weighted average common shares outstanding - basic 84,142 75,610 83,607 75,895 Dilutive effect of stock-based awards 2,641 4,922 3,325 5,476 Dilutive effect of warrants — 5,976 508 7,657 Dilutive effect of Convertible Senior Notes — 13,881 784 15,481 Weighted average common shares outstanding - diluted 86,783 100,389 88,224 104,509 Earnings per common share: Basic $ 2.90 $ 4.21 $ 6.57 $ 7.63 Diluted $ 2.82 $ 3.25 $ 6.23 $ 5.70 Stock-based awards excluded from diluted shares 312 542 222 278 The dilutive effect of the Convertible Senior Notes included shares that were designed to be offset at settlement by shares delivered from the bond hedge purchased by the Company. The shares provided by the bond hedge were anti-dilutive; accordingly, they were not treated as a reduction to diluted weighted average shares outstanding until received at settlement. In addition, the dilutive effect of the Convertible Senior Notes included shares related to the outstanding principal amount of the Convertible Senior Notes. Although the Company was required to assume that the Convertible Senior Notes would be settled in shares of its common stock in accordance with the “if-converted method” under U.S. GAAP, the Company settled the Convertible Senior Notes without dilutive effect, due to cash payments for principal, shares received from the convertible bond hedge and share repurchases to offset the share settlement of the remaining $59.1 million of principal during the first quarter of fiscal 2023. Refer to Note 5 – Convertible Senior Notes for further information.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
Fair Value Measurements	Jul. 29, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Accounting Standard Codification (“ASC”) 820, “ Fair Value Measurement and Disclosures ,” outlines a valuation framework and creates a fair value hierarchy for assets and liabilities as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Recurring The Company measures its deferred compensation plan assets held in trust at fair value on a recurring basis using Level 1 inputs. Such assets consist of investments in various mutual funds made by eligible individuals as part of the Company’s deferred compensation plans. As of July 29, 2023, January 28, 2023 and July 30, 2022, the fair value of the Company’s deferred compensation plans was $148.0 million, $133.5 million and $135.5 million, respectively, as determined by quoted prices in active markets. The Company discloses the fair value of its senior notes due 2032 and 2052 and Convertible Senior Notes using Level 2 inputs, which are based on quoted prices for similar or identical instruments in inactive markets, as follows (in thousands) : July 29, 2023 January 28, 2023 July 30, 2022 Carrying Value Fair Carrying Value Fair Carrying Value Fair Senior notes due 2032 $ 742,795 $ 609,518 $ 742,428 $ 613,403 $ 742,067 $ 615,495 Senior notes due 2052 $ 739,999 $ 509,813 $ 739,908 $ 525,120 $ 739,819 $ 518,640 Convertible Senior Notes (1) $ — $ — $ 58,271 $ 232,488 $ 368,478 $ 1,087,575 (1) The Company’s Convertible Senior Notes were fully retired on April 18, 2023. Due to their short-term nature, the fair value of cash and cash equivalents, accounts receivable, accounts payable and certain other liabilities approximated their carrying values at July 29, 2023, January 28, 2023 and July 30, 2022. Nonrecurring Assets and liabilities recognized or disclosed at fair value on a nonrecurring basis may include property and equipment, operating lease assets, goodwill and other intangible assets, equity and other assets. These assets are required to be assessed for impairment when events or circumstances indicate that the carrying value may not be recoverable, and at least annually, for goodwill and indefinite-lived intangible assets. In the event that an impairment is required, the asset is adjusted to fair value using Level 3 inputs.

Leases

Leases	6 Months Ended
Leases	Jul. 29, 2023
Leases [Abstract]
Leases	Leases The Company leases substantially all of its stores, three of its distribution centers, and certain equipment and storage under non-cancellable operating leases that expire at various dates through 2039. The Company’s stores generally have initial lease terms of 10 to 15 years and contain multiple five-year renewal options and rent escalation provisions. The lease agreements are primarily for the payment of minimum annual rentals, costs of utilities, property taxes, maintenance, common areas and insurance. Supplemental cash flow information related to operating leases for the 26 weeks ended July 29, 2023 and July 30, 2022 were as follows ( in thousands ): 26 Weeks Ended July 29, July 30, Cash paid for amounts included in the measurement of operating lease liabilities $ 388,606 $ 332,406 Non-cash operating lease assets obtained in exchange for operating lease liabilities $ 426,237 $ 254,664

Convertible Senior Notes

Convertible Senior Notes	6 Months Ended
Convertible Senior Notes	Jul. 29, 2023
Debt Disclosure [Abstract]
Convertible Senior Notes	Convertible Senior NotesOn April 18, 2023, the Company retired the remaining $59.1 million aggregate principal amount outstanding of its Convertible Senior Notes, substantially all of which was settled in shares of its common stock. The Company paid all accrued and unpaid interest as of April 18, 2023, and concurrently terminated the remaining proportionate amount of the bond hedge and warrant transactions. In connection with the retirement of the Convertible Senior Notes and termination of the bond hedge and the warrant transactions, the Company issued 1.7 million shares of its Company’s common stock and recorded $58.5 million to additional paid-in-capital. Accordingly, the Company no longer has outstanding Convertible Senior Notes. During the 13 and 26 weeks ended July 30, 2022, the Company recognized $10.8 million and $21.9 million of interest expense related to the Convertible Senior Notes, or $8.0 million and $16.2 million, net of tax, respectively. Interest expense included $6.6 million and $12.3 million of pre-tax inducement charges related to the exchange transactions during fiscal 2022, of which $0.7 million and $1.5 million, respectively, was attributed to non-cash amortization of issuance fees during the 13 and 26 weeks ended July 30, 2022. Following retirement of the Convertible Senior Notes in the first quarter of fiscal 2023, the Company did not incur any related interest expense during the 13 weeks ended July 29, 2023. During the 26 weeks ended July 29, 2023, the Company recognized $0.5 million of interest expense related to the Convertible Senior Notes.

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jul. 29, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThe Company’s effective tax rate for the 13 and 26 weeks ended July 29, 2023 was 25.0% and 16.1%, respectively, as compared to 25.5% and 23.7% for the 13 and 26 weeks ended July 30, 2022, respectively. The effective tax rate for the current year-to-date period was favorably impacted by a $48.0 million increase in excess tax benefits, resulting from a higher number of employee equity awards vesting and exercised in the current period at a higher share price than the prior year period.

Subsequent Event

Subsequent Event	6 Months Ended
Subsequent Event	Jul. 29, 2023
Subsequent Events [Abstract]
Subsequent Event	Subsequent EventsOn August 21, 2023, the Company's Board of Directors authorized and declared a quarterly cash dividend in the amount of $1.00 per share on the Company's common stock and Class B common stock. The dividend is payable on September 29, 2023 to stockholders of record as of the close of business on September 15, 2023.On August 22, 2023, the Company announced a business optimization of its organization to better align its talent, organizational design and spending in support of its most critical strategies while also streamlining its overall cost structure. In connection with this business optimization, which is expected to be completed during fiscal 2023, the Company eliminated certain positions primarily at its customer support center on August 21, 2023 for which it expects to incur approximately $20 million of severance expense in the third quarter of 2023. Cash payments related to this expense are expected to be made over the next twelve months.

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jul. 29, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Description of Business and B_2

Description of Business and Basis of Presentation (Policies)	6 Months Ended
	Jul. 29, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recently Adopted Accounting Pronouncement	Recently Adopted Accounting Pronouncement Supplier Finance Programs In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04, “Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” which requires that a buyer in a supplier finance program disclose the key terms of the programs along with information about obligations outstanding, including a roll-forward of those obligations. The Company adopted this ASU during the first quarter of fiscal 2023. The adoption did not have a significant impact on the Company’s financial condition, results of operations, cash flows or disclosures. The Company has entered into supply chain financing arrangements with third-party financial institutions, whereby suppliers have the opportunity to settle outstanding payment obligations early at a discount. The Company does not have an economic interest in suppliers’ voluntary participation and the Company does not provide any guarantees or pledge assets under these arrangements. The Company settles invoices with the third-party financial institutions in accordance with the original supplier payment terms. The Company’s rights and obligations to its suppliers, including amounts due and scheduled payment terms, are not impacted by these arrangements. Liabilities associated with the funded participation in these arrangements, which are presented within accounts payable

Earnings Per Common Share (Tabl

Earnings Per Common Share (Table)	6 Months Ended
Earnings Per Common Share (Table)	Jul. 29, 2023
Earnings Per Share [Abstract]
Schedule of the computations for basic and diluted earnings per common share	The computations for basic and diluted earnings per common share were as follows for the periods presented ( in thousands, except per share data) : 13 Weeks Ended 26 Weeks Ended July 29, July 30, July 29, July 30, Numerator: Numerator for basic earnings per common share - Net income $ 244,331 $ 318,502 $ 548,980 $ 579,061 Effect of dilutive securities Interest expense associated with Convertible Senior Notes, net of tax — 7,992 337 16,201 Numerator for diluted earnings per common share - Net income after the effect of dilutive securities $ 244,331 $ 326,494 $ 549,317 $ 595,262 Denominator: Weighted average common shares outstanding - basic 84,142 75,610 83,607 75,895 Dilutive effect of stock-based awards 2,641 4,922 3,325 5,476 Dilutive effect of warrants — 5,976 508 7,657 Dilutive effect of Convertible Senior Notes — 13,881 784 15,481 Weighted average common shares outstanding - diluted 86,783 100,389 88,224 104,509 Earnings per common share: Basic $ 2.90 $ 4.21 $ 6.57 $ 7.63 Diluted $ 2.82 $ 3.25 $ 6.23 $ 5.70 Stock-based awards excluded from diluted shares 312 542 222 278

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
Fair Value Measurements (Tables)	Jul. 29, 2023
Fair Value Disclosures [Abstract]
Schedule of carrying values and estimated fair values of debt instruments	The Company discloses the fair value of its senior notes due 2032 and 2052 and Convertible Senior Notes using Level 2 inputs, which are based on quoted prices for similar or identical instruments in inactive markets, as follows (in thousands) : July 29, 2023 January 28, 2023 July 30, 2022 Carrying Value Fair Carrying Value Fair Carrying Value Fair Senior notes due 2032 $ 742,795 $ 609,518 $ 742,428 $ 613,403 $ 742,067 $ 615,495 Senior notes due 2052 $ 739,999 $ 509,813 $ 739,908 $ 525,120 $ 739,819 $ 518,640 Convertible Senior Notes (1) $ — $ — $ 58,271 $ 232,488 $ 368,478 $ 1,087,575 (1) The Company’s Convertible Senior Notes were fully retired on April 18, 2023.

Leases (Table)

Leases (Table)	6 Months Ended
Leases (Table)	Jul. 29, 2023
Leases [Abstract]
Other information related to operating leases	Supplemental cash flow information related to operating leases for the 26 weeks ended July 29, 2023 and July 30, 2022 were as follows ( in thousands ): 26 Weeks Ended July 29, July 30, Cash paid for amounts included in the measurement of operating lease liabilities $ 388,606 $ 332,406 Non-cash operating lease assets obtained in exchange for operating lease liabilities $ 426,237 $ 254,664

Description of Business and B_3

Description of Business and Basis of Presentation (Details) - USD ($) $ in Millions	Jul. 29, 2023	Jan. 28, 2023	Jul. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Presentation on Consolidated Balance Sheets of liabilities under supply chain financing programs	Accounts payable
Supply chain financing liability balance	$ 38.1	$ 40.1	$ 86.1

Earnings Per Common Share (Deta

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended				6 Months Ended
	Apr. 18, 2023	Jul. 29, 2023	Apr. 29, 2023	Jul. 30, 2022	Apr. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Earnings Per Share [Abstract]
Net income		$ 244,331	$ 304,649	$ 318,502	$ 260,559	$ 548,980	$ 579,061
Interest expense associated with Convertible Senior Notes, net of tax		0		7,992		337	16,201
Numerator for diluted earnings per common share - Net income after the effect of dilutive securities		$ 244,331		$ 326,494		$ 549,317	$ 595,262
Weighted average common shares outstanding - basic (in shares)		84,142		75,610		83,607	75,895
Dilutive effect of stock-based awards (in shares)		2,641		4,922		3,325	5,476
Dilutive effect of warrants (in shares)		0		5,976		508	7,657
Dilutive effect of Convertible Senior Notes (in shares)		0		13,881		784	15,481
Weighted average common shares outstanding - diluted (in shares)		86,783		100,389		88,224	104,509
Earnings per common share (in dollars per share) - basic		$ 2.90		$ 4.21		$ 6.57	$ 7.63
Earnings per common share (in dollars per share) - diluted		$ 2.82		$ 3.25		$ 6.23	$ 5.70
Stock-based awards excluded from diluted shares
Interest expense associated with Convertible Senior Notes, net of tax		$ 0		$ 7,992		$ 337	$ 16,201
Basic (in shares)		84,142		75,610		83,607	75,895
Dilutive effect of stock-based awards (in shares)		2,641		4,922		3,325	5,476
Dilutive effect of warrants (in shares)		0		5,976		508	7,657
Dilutive effect of Convertible Senior Notes (in shares)		0		13,881		784	15,481
Basic (in dollars per share)		$ 2.90		$ 4.21		$ 6.57	$ 7.63
Diluted (in dollars per share)		$ 2.82		$ 3.25		$ 6.23	$ 5.70
Share-based Payment Arrangement
Stock-based awards excluded from diluted shares
Stock-based awards excluded from diluted shares (in shares)		312		542		222	278
Convertible Senior Notes
Earnings Per Share [Abstract]
Interest expense associated with Convertible Senior Notes, net of tax				$ 8,000			$ 16,200
Stock-based awards excluded from diluted shares
Remaining principal amount of Convertible Senior Notes that was fully retired	$ 59,100
Interest expense associated with Convertible Senior Notes, net of tax				$ 8,000			$ 16,200

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Jul. 29, 2023	Jan. 28, 2023	Jul. 30, 2022
Level 1
Fair Value Measurements
Deferred compensation plan assets held in trust	$ 148	$ 133.5	$ 135.5

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Carrying and Estimated Fair Value (Details) - USD ($) $ in Thousands	Jul. 29, 2023	Jan. 28, 2023	Jul. 30, 2022
Carrying Value
Convertible Senior Notes	$ 0	$ 58,271	$ 368,478
Senior notes	1,482,794	1,482,336	1,481,886
Fair Value, Recurring \| Convertible Senior Notes
Carrying Value
Convertible Senior Notes	0	58,271	368,478
Fair Value, Recurring \| Convertible Senior Notes \| Level 2
Fair Value
Convertible Senior Notes	0	232,488	1,087,575
Fair Value, Recurring \| Senior notes due 2032
Carrying Value
Senior notes	742,795	742,428	742,067
Fair Value, Recurring \| Senior notes due 2032 \| Level 2
Fair Value
Senior notes due 2023 and 2052	609,518	613,403	615,495
Fair Value, Recurring \| Senior notes due 2052
Carrying Value
Senior notes	739,999	739,908	739,819
Fair Value, Recurring \| Senior notes due 2052 \| Level 2
Fair Value
Senior notes due 2023 and 2052	$ 509,813	$ 525,120	$ 518,640

Leases (Details)

Leases (Details) $ in Thousands	6 Months Ended
Leases (Details) $ in Thousands	Jul. 29, 2023 USD ($) DistributionCenter	Jul. 30, 2022 USD ($)
Leases
Number of distribution centers leased \| DistributionCenter	3
Additional renewal period	5 years
Cash paid for amounts included in the measurement of operating lease liabilities	$ 388,606	$ 332,406
Non-cash operating lease assets obtained in exchange for operating lease liabilities	$ 426,237	$ 254,664
Minimum
Leases
Initial tenure of operating leases	10 years
Maximum
Leases
Initial tenure of operating leases	15 years

Convertible Senior Notes - Narr

Convertible Senior Notes - Narrative (Details) - USD ($) $ in Thousands, shares in Millions		3 Months Ended			6 Months Ended
	Apr. 18, 2023	Jul. 29, 2023	Apr. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022	Jan. 28, 2023
Convertible Senior Notes
Amortization of deferred financing fees and debt discount					$ 1,210	$ 2,601
Interest expense associated with Convertible Senior Notes, net of tax		$ 0		$ 7,992	337	16,201
Impact to additional paid-in-capital in connection with Convertible Senior Notes retirement			$ 58,472
Convertible senior notes due 2025		0		368,478	0	368,478	$ 58,271
Convertible Senior Notes
Convertible Senior Notes
Inducement charge				6,600		12,300
Amortization of deferred financing fees and debt discount				700		1,500
Interest expenses related to Convertible Senior Notes		$ 0		10,800	$ 500	21,900
Interest expense associated with Convertible Senior Notes, net of tax				$ 8,000		$ 16,200
Remaining principal amount of Convertible Senior Notes that was fully retired	$ 59,100
Net shares issued in connection with Convertible Senior Notes retirement (in shares)	1.7
Impact to additional paid-in-capital in connection with Convertible Senior Notes retirement	$ 58,500

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	25%	25.50%	16.10%	23.70%
Comparative impact of excess tax benefit related to share-based compensation			$ 48

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Millions	Aug. 22, 2023	Aug. 21, 2023
Business Optimization Plan \| Employee Severance
Subsequent Event
Restructuring and Related Cost, Expected Cost	$ 20
Common Stock
Subsequent Event
Dividend amount (in dollars per share)		$ 1
Class B Common Stock
Subsequent Event
Dividend amount (in dollars per share)		$ 1