12. Quarterly financial data (unaudited)

The following is selected unaudited quarterly financial data for the fiscal years ended February 2, 2018 and February 3, 2017. Each quarterly period listed below was a 13-week accounting period, with the exception of the fourth quarter of 2016, which was a 14-week accounting period. The sum of the four quarters for any given year may not equal annual totals due to rounding.


	First		Second		Third		Fourth
(In thousands)	Quarter		Quarter		Quarter		Quarter
2017:
Net sales	$	5,609,625	$	5,828,305	$	5,903,606	$	6,129,431
Gross profit		1,698,983		1,790,522		1,766,456		1,965,398
Operating profit		473,795		493,146		417,431		623,446
Net income		279,489		294,783		252,533		712,155
Basic earnings per share		1.02		1.08		0.93		2.63
Diluted earnings per share		1.02		1.08		0.93		2.63


	First		Second		Third		Fourth
(In thousands)	Quarter		Quarter		Quarter		Quarter
2016:
Net sales	$	5,265,432	$	5,391,891	$	5,320,029	$	6,009,246
Gross profit		1,612,614		1,681,767		1,587,510		1,900,747
Operating profit		480,743		509,097		392,991		680,618
Net income		295,124		306,518		235,315		414,176
Basic earnings per share		1.03		1.08		0.84		1.50
Diluted earnings per share		1.03		1.08		0.84		1.49

In 2017, the Company purchased 15 retail store locations and assumed the lease obligations on approximately 300 retail store locations, and relocated certain of its existing stores to the acquired locations. As a result, the Company incurred expenses, primarily related to costs for remaining lease liabilities, of $7.3 million ($4.4 million net of tax, or $0.02 per diluted share), which was recognized in Selling, general, and administrative expense in the second quarter of 2017.

In the fourth quarter of 2017, the Company closed an incremental 35 stores as result of a strategic review process. The Company incurred $28.3 million of costs ($17.6 million net of tax, or $0.07 per diluted share) related to these store closings, most of which was in the form of SG&A expenses for remaining lease liabilities.

In 2016, the Company acquired 42 retail store locations and closed 40 of its own locations as part of relocating stores to the purchased locations. As a result, the Company incurred expenses, primarily related to costs for remaining lease liabilities, of $11.0 million ($6.7 million net of tax, or $0.02 per diluted share), which was recognized in SG&A expense in the third quarter of 2016.

In the fourth quarter of 2016, the Company sold or assigned the leases for 12 of its own locations which were closed as part of the relocation process to the acquired locations. As a result, the Company incurred a reduction of expenses of $4.5 million ($2.8 million net of tax, or $0.01 per diluted share), which was recognized in SG&A expense.