| SHARE-BASED COMPENSATION |
SHARE-BASED COMPENSATION Financial statement impact
The following table provides share-based compensation expense and the related income tax impacts for the thirteen weeks ended May 2, 2026 and May 3, 2025: | | | | | | | | | | | | | | | | | Thirteen Weeks Ended | | | | (in thousands) | May 2, 2026 | | May 3, 2025 | | | | | | Share-based compensation expense | $ | 12,075 | | | $ | 10,591 | | | | | | Income tax benefits associated with share-based compensation expense recognized | 1,661 | | | 1,398 | | | | | |
The following table provides discrete income tax benefits and charges related to share-based compensation awards during the thirteen weeks ended May 2, 2026 and May 3, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Thirteen Weeks Ended | | | | (in thousands) | | | May 2, 2026 | | May 3, 2025 | | | | | Income tax discrete benefits realized for tax deductions related to the issuance of shares | | | $ | 3,559 | | | $ | 4,591 | | | | | | | | | | | | | | | | | | | | | | | | | |
The following table provides the amount of employee tax withheld by the Company upon the issuance of shares associated with restricted stock units vesting for the thirteen weeks ended May 2, 2026 and May 3, 2025:
| | | | | | | | | | | | | | | | | Thirteen Weeks Ended | | | | (in thousands) | May 2, 2026 | | May 3, 2025 | | | | | Employee tax withheld upon issuance of shares (1) | $ | 38,433 | | | $ | 34,062 | | | | | |
(1) Classified within financing activities on the Condensed Consolidated Statements of Cash Flows. Restricted stock units
The following table provides the summarized activity for restricted stock units for the thirteen weeks ended May 2, 2026: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Service-based Restricted Stock Units | | Performance-based Restricted Stock Units | | Market-based Restricted Stock Units | | Number of Underlying Shares | | Weighted- Average Grant Date Fair Value | | Number of Underlying Shares | | Weighted- Average Grant Date Fair Value | | Number of Underlying Shares | | Weighted- Average Grant Date Fair Value | | Unvested at January 31, 2026 | 975,804 | | | $ | 66.81 | | | 342,566 | | | $ | 56.31 | | | 171,304 | | | $ | 74.95 | | | Granted | 357,454 | | | 86.47 | | | 100,324 | | | 86.42 | | | 50,168 | | | 109.30 | | Adjustments for performance achievement | — | | | — | | | 196,438 | | | 28.36 | | | 98,224 | | | 41.20 | | | Vested | (426,946) | | | 54.00 | | | (392,876) | | | 28.36 | | | (196,448) | | | 41.20 | | | Forfeited | (13,109) | | | 71.80 | | | — | | | — | | | — | | | — | | Unvested at May 2, 2026 (1) | 893,203 | | | $ | 80.72 | | | 246,452 | | | $ | 90.85 | | | 123,248 | | | $ | 115.83 | |
(1) Unvested shares related to restricted stock units with performance-based and market-based vesting conditions are reflected at 100% of their target vesting amount in the table above. Unvested shares related to restricted stock units with performance-based and market-based vesting conditions can be achieved from zero up to 200% of their target vesting amount.
The following table provides the unrecognized compensation cost and the remaining weighted-average period over which these costs are expected to be recognized for restricted stock units as of May 2, 2026: | | | | | | | | | | | | | | | | | | | Service-based Restricted Stock Units | | Performance-based Restricted Stock Units | | Market-based Restricted Stock Units | Unrecognized compensation cost (in thousands) | $ | 66,451 | | | $ | 15,569 | | | $ | 9,337 | | Remaining weighted-average period cost is expected to be recognized (years) | 1.4 | | 1.2 | | 1.2 |
The following table provides additional information pertaining to restricted stock units for the thirteen weeks ended May 2, 2026 and May 3, 2025: | | | | | | | | | | | | | Thirteen Weeks Ended | | (in thousands) | May 2, 2026 | | May 3, 2025 | | Service-based restricted stock units: | | | | | Total grant date fair value of awards granted | $ | 30,909 | | | $ | 31,388 | | | Total grant date fair value of awards vested | 23,055 | | | 20,341 | | | | | | | Performance-based restricted stock units: | | | | | Total grant date fair value of awards granted | 8,670 | | | 7,500 | | | Total grant date fair value of awards vested | 11,142 | | | 9,845 | | | | | | | Market-based restricted stock units: | | | | | Total grant date fair value of awards granted | 5,483 | | | 4,093 | | | Total grant date fair value of awards vested | 8,094 | | | 7,214 | |
The following table provides the weighted-average assumptions used for market-based restricted stock units in the Monte Carlo simulation during the thirteen weeks ended May 2, 2026 and May 3, 2025: | | | | | | | | | | | | | Thirteen Weeks Ended | | May 2, 2026 | | May 3, 2025 | | Grant date market price | $ | 86.42 | | | $ | 78.69 | | | Fair value | 109.30 | | | 85.88 | | | | | | | Price volatility | 60 | % | | 61 | % | Expected term (years) | 2.9 | | 2.9 | | Risk-free interest rate | 3.6 | % | | 3.8 | % | | | | | | Average volatility of peer companies | 48.2 | | | 45.6 | | | Average correlation coefficient of peer companies | 0.4229 | | 0.4430 |
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