Income Taxes (Tables)
|
12 Months Ended |
Jan. 31, 2026 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Components of Income (Loss) before Income Taxes |
The components of income before income taxes are as follows:
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Fiscal Year Ended January 31, |
|
|
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2026 |
|
|
2025 |
|
|
2024 |
|
Domestic |
|
$ |
549,787 |
|
|
$ |
489,723 |
|
|
$ |
378,265 |
|
Foreign |
|
|
47,110 |
|
|
|
10,449 |
|
|
|
3,342 |
|
|
|
$ |
596,897 |
|
|
$ |
500,172 |
|
|
$ |
381,607 |
|
|
| Components of Provision for Income Tax Expense or Benefit |
The components of the provision for income tax expense/(benefit) are as follows:
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Fiscal Year Ended January 31, |
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2026 |
|
|
2025 |
|
|
2024 |
|
Current: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
89,207 |
|
|
$ |
76,959 |
|
|
$ |
46,714 |
|
State |
|
|
22,325 |
|
|
|
21,568 |
|
|
|
19,422 |
|
Foreign |
|
|
7,550 |
|
|
|
2,149 |
|
|
|
3,086 |
|
|
|
$ |
119,082 |
|
|
$ |
100,676 |
|
|
$ |
69,222 |
|
Deferred: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
12,028 |
|
|
$ |
(6,461 |
) |
|
$ |
24,141 |
|
State |
|
|
514 |
|
|
|
1,619 |
|
|
|
(1,152 |
) |
Foreign |
|
|
354 |
|
|
|
1,876 |
|
|
|
1,722 |
|
|
|
|
12,896 |
|
|
|
(2,966 |
) |
|
|
24,711 |
|
|
|
$ |
131,978 |
|
|
$ |
97,710 |
|
|
$ |
93,933 |
|
|
| Reasons for Differences between Company's Effective Tax Rate and Statutory U.S. Federal Income Tax Rate |
The following table reconciles the U.S. statutory tax rate to the Company's effective tax rate for the fiscal year ended January 31, 2026, in accordance with the prospective adoption of the accounting standard update related to enhanced income tax disclosures:
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Fiscal Year Ended |
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|
|
January 31, 2026 |
|
Tax at U.S. statutory rate |
|
$ |
125,348 |
|
|
|
21.0 |
% |
State and local income taxes(1) |
|
|
18,043 |
|
|
|
3.0 |
|
Foreign taxes |
|
|
(8,741 |
) |
|
|
(1.5 |
) |
Effects of cross-border tax laws |
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|
3,120 |
|
|
|
0.5 |
|
Tax credits |
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|
|
|
|
|
Low-income housing tax credits |
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|
(5,769 |
) |
|
|
(1.0 |
) |
Other |
|
|
(727 |
) |
|
|
(0.1 |
) |
Nontaxable and nondeductible items |
|
|
3,653 |
|
|
|
0.6 |
|
Changes in unrecognized tax benefits |
|
|
721 |
|
|
|
0.1 |
|
Other |
|
|
(3,670 |
) |
|
|
(0.5 |
) |
Effective tax rate |
|
$ |
131,978 |
|
|
|
22.1 |
% |
(1)The state and local jurisdictions that contribute to the majority (greater than 50%) of the tax effect in this category include California, Illinois, New York and New York City. The variance in the effective tax rate for fiscal 2026 as compared to fiscal 2025 was primarily due to the non-recurrence of a significant tax reserve release recorded in fiscal 2025 as a result of a lapse of the statute of limitations for federal tax purposes. The following table reconciles the U.S. statutory tax rate to the Company's effective tax rate for the fiscal years ended January 31, 2025 and 2024, prior to the adoption of the accounting standard update related to enhanced income tax disclosures:
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Fiscal Year Ended January 31, |
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|
2025 |
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|
2024 |
|
Expected provision at statutory U.S. federal tax rate |
|
|
21.0 |
% |
|
|
21.0 |
% |
State and local income taxes, net of federal tax benefit |
|
|
3.7 |
|
|
|
3.8 |
|
Foreign taxes |
|
|
(0.5 |
) |
|
|
(0.2 |
) |
Nondeductible expenses |
|
|
0.9 |
|
|
|
0.8 |
|
General business credits |
|
|
(1.2 |
) |
|
|
(1.4 |
) |
Uncertain tax positions |
|
|
(4.4 |
) |
|
|
0.3 |
|
Other |
|
|
— |
|
|
|
0.3 |
|
Effective tax rate |
|
|
19.5 |
% |
|
|
24.6 |
% |
|
| Significant Components of Deferred Tax Assets and Liabilities |
The significant components of deferred tax assets and liabilities as of January 31, 2026 and 2025 are as follows:
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January 31, |
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|
2026 |
|
|
2025 |
|
Deferred tax liabilities: |
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|
|
|
|
Prepaid expense |
|
$ |
(3,127 |
) |
|
$ |
(2,912 |
) |
Depreciation |
|
|
(104,847 |
) |
|
|
(93,147 |
) |
Operating lease right-of-use assets |
|
|
(246,991 |
) |
|
|
(226,526 |
) |
Other temporary differences |
|
|
(628 |
) |
|
|
(304 |
) |
Gross deferred tax liabilities |
|
|
(355,593 |
) |
|
|
(322,889 |
) |
Deferred tax assets: |
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|
|
|
|
Operating lease liabilities |
|
|
288,317 |
|
|
|
264,199 |
|
Deferred rent |
|
|
8,549 |
|
|
|
12,437 |
|
Inventory |
|
|
23,657 |
|
|
|
34,976 |
|
Accounts receivable |
|
|
1,392 |
|
|
|
1,685 |
|
Net operating loss carryforwards |
|
|
13,250 |
|
|
|
15,009 |
|
Tax uncertainties |
|
|
263 |
|
|
|
236 |
|
Accrued salaries and benefits |
|
|
37,959 |
|
|
|
34,257 |
|
Income tax credits |
|
|
2,996 |
|
|
|
3,588 |
|
Other temporary differences |
|
|
41,140 |
|
|
|
37,432 |
|
Gross deferred tax assets, before valuation allowances |
|
|
417,523 |
|
|
|
403,819 |
|
Valuation allowances |
|
|
(26,308 |
) |
|
|
(32,463 |
) |
Net deferred tax assets |
|
$ |
35,622 |
|
|
$ |
48,467 |
|
|
| Reconciliation of Beginning and Ending Balances of Total Amounts of Gross Unrecognized Tax Benefits |
A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:
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|
January 31, |
|
Tax Benefit Reconciliation |
|
2026 |
|
|
2025 |
|
|
2024 |
|
Balance at the beginning of the period |
|
$ |
943 |
|
|
$ |
18,662 |
|
|
$ |
18,734 |
|
Increases in tax positions for prior years |
|
|
619 |
|
|
|
— |
|
|
|
54 |
|
Decreases in tax positions for prior years |
|
|
(81 |
) |
|
|
(418 |
) |
|
|
(26 |
) |
Increases in tax positions for current year |
|
|
243 |
|
|
|
323 |
|
|
|
332 |
|
Settlements |
|
|
— |
|
|
|
(217 |
) |
|
|
(117 |
) |
Lapse in statute of limitations |
|
|
(155 |
) |
|
|
(17,407 |
) |
|
|
(315 |
) |
Balance at the end of the period |
|
$ |
1,569 |
|
|
$ |
943 |
|
|
$ |
18,662 |
|
|
| Cash Income Taxes Paid |
The amounts of cash income taxes paid, net of refunds, by the Company were as follows:
|
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|
|
|
|
|
Fiscal Year Ended |
|
|
|
January 31, 2026 |
|
Federal |
|
$ |
89,728 |
|
State and local |
|
|
|
California |
|
|
6,750 |
|
All other state and local |
|
|
23,556 |
|
Foreign |
|
|
4,578 |
|
Income taxes, net of amounts refunded |
|
$ |
124,612 |
|
|
| Investment |
The following table summarizes the balances related to the investment at January 31, 2026 and 2025:
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|
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|
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|
January 31, |
|
|
2026 |
|
2025 |
|
Other assets |
$ |
31,580 |
|
$ |
48,784 |
|
Accrued expenses and other current liabilities |
|
15,164 |
|
|
16,571 |
|
Other non-current liabilities |
|
15,558 |
|
|
30,722 |
|
|