| Segment reporting |
13. Segment reporting The Company has one reportable segment, which includes retail stores, salon services, and e-commerce. Within the reportable segment, there are significant expense categories included in the measure of the segment’s net income as shown below: | | | | | | | | | 13 Weeks Ended | | | May 2, | | May 3, | (In thousands) | | 2026 | | 2025 | Net sales | | $ | 3,163,857 | | $ | 2,848,367 | Less: | | | | | | | Cost of sales (1) | | | 1,896,237 | | | 1,734,148 | Associate expenses (2) | | | 438,018 | | | 387,150 | Advertising expense, net (3) | | | 93,055 | | | 90,609 | Pre-opening expenses | | | 4,665 | | | 1,829 | Other segment expenses (1) (4) | | | 283,626 | | | 232,854 | Interest income, net | | | (652) | | | (3,547) | Income tax expense | | | 106,860 | | | 99,644 | Equity net loss of affiliate | | | 1,579 | | | 628 | Net income | | $ | 340,469 | | $ | 305,052 |
| (1) | Included within cost of sales and other segment expenses is depreciation and amortization expense of $81,399 and $72,033 for the 13 weeks ended May 2, 2026 and May 3, 2025, respectively. |
| (2) | Associate expenses include salaries, wages, bonuses, and other forms of compensation related to associates. |
| (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. |
(4) Other segment expenses include other corporate overhead and store operating expenses within SG&A expenses.
|