Income Taxes |
6 Months Ended |
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Aug. 01, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes Our interim tax provision was determined using an estimated annual effective tax rate ("AETR") applied to ordinary pre-tax income, adjusted for the tax effects of discrete items recognized during the six months ended August 1, 2026. We recognized income tax expense of $121.5 million for the three months ended August 1, 2026, representing an effective tax rate of 28.9%, compared to income tax expense of $6.0 million, or an effective tax rate of 3.4%, for the three months ended August 2, 2025. The increase in income tax expense was driven primarily by significantly higher pre-tax income for the three months ended August 1, 2026. The increase in the effective tax rate reflects that the prior-year period benefited from the utilization of U.S. net operating loss carryforwards and the related release of valuation allowances, which were substantially exhausted by the end of fiscal 2025. The difference between our effective tax rate and the U.S. federal statutory rate of 21% is primarily attributable to state income taxes and losses for which no corresponding tax benefit was recognized. We recognized income tax expense of $238.3 million for the six months ended August 1, 2026, representing an effective tax rate of 25.7%, compared to income tax expense of $9.5 million, or an effective tax rate of 4.3%, for the six months ended August 2, 2025. The increase in income tax expense was driven primarily by significantly higher pre-tax income for the six months ended August 1, 2026. The increase in the effective tax rate reflects that the prior-year period benefited from the utilization of U.S. net operating loss carryforwards and the related release of valuation allowances, which were substantially exhausted by the end of fiscal 2025. The difference between our effective tax rate and the U.S. federal statutory rate of 21% is primarily attributable to state income taxes and losses for which no corresponding tax benefit was recognized. On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the United States. The legislation makes permanent certain expiring provisions of the Tax Cuts and Jobs Act, modifies the U.S. international tax framework, and restores certain favorable business tax provisions. The OBBBA's provisions take effect on various dates between 2025 and 2027. The Company has evaluated the legislation and does not expect it to have a material impact on its estimated fiscal 2026 effective tax rate. The Company will continue to monitor implementing guidance and regulations.
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