Income Taxes

6 Months Ended

Jul. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company’s effective tax rate decreased to 24.5% for the quarter ended July 31, 2021 from 29.2% for the quarter ended August 1, 2020. The Company’s effective tax rate in the first quarter of 2020 included an estimated benefit resulting from the CARES Act, which allows for the carry-back of net operating losses to periods prior to the Tax Cuts and Jobs Act, when the federal statutory tax rate was 35%. Based upon its net income for the second quarter of 2020, the Company no longer anticipated a net operating loss for fiscal 2020, which was reflected in its effective tax rate for the 13 weeks ended August 1, 2020.

The Company’s effective tax rate was 23.9% for the 26 weeks ended July 31, 2021, and 27.3% for the 26 weeks ended August 1, 2020. The decrease was due primarily to the favorable tax impact from the vesting of certain share-based payments in the current year due to increases in the Company’s share price.