Leases

3 Months Ended

May 02, 2026

5.Leases

The Company leases retail stores, distribution centers, fast fulfillment centers, market fulfillment centers, corporate offices, and certain equipment under non-cancelable operating leases with various expiration dates through 2041. All leases are classified as operating leases and generally have initial lease terms of 10 years and, when determined applicable, include renewal options under substantially the same terms and conditions as the original leases. Leases do not contain any material residual value guarantees or material restrictive covenants.

Lease cost

The majority of operating lease cost relates to retail stores, distribution centers, fast fulfillment centers, and market fulfillment centers and is classified within cost of sales. Operating lease cost for corporate offices is classified within selling, general and administrative expenses. Operating lease cost from the control date through store opening date is classified within pre-opening expenses.

The following table presents a summary of operating lease costs:


	13 Weeks Ended
	May 2,		May 3,
(In thousands)	2026		2025
Operating lease cost	$	104,372	$	93,466

Other information

The following table presents supplemental disclosures of cash flow information related to operating leases:


		13 Weeks Ended
		May 2,		May 3,
(In thousands)		2026		2025
Cash paid for operating lease liabilities (1)		$	115,473	$	106,017
Operating lease assets obtained in exchange for operating lease liabilities (non-cash)			128,956		140,069

(1)	Excludes $13,418 and $15,782 related to cash received for tenant incentives for the 13 weeks ended May 2, 2026 and May 3, 2025, respectively.

Ulta Beauty, Inc. 10-Q