The Company has operating and finance leases for the Company’s retail store facilities, distribution center, corporate offices, IT systems hardware, and distribution center delivery tractors and equipment, and accounts for these leases in accordance with ASC 842.

Certain of the leases for the Company’s retail store facilities provide for variable payments for property taxes, insurance, common area maintenance payments related to triple net leases, rental payments based on future sales volumes at the leased location, as well as certain equipment sales taxes, licenses, fees and repairs, which are not measurable at the inception of the lease, or rental payments that are adjusted periodically for inflation. The Company recognizes variable lease expense for these leases in the period incurred which, for contingent rent, begins in the period in which it becomes probable that the specified target that triggers the variable lease payments will be achieved. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease expense were as follows:


	13 Weeks Ended				26 Weeks Ended
	June 29, 2025		June 30, 2024		June 29, 2025		June 30, 2024
	(In thousands)
Lease expense:
Operating lease expense	$	20,580	$	21,210	$	41,200	$	42,248
Variable lease expense		5,090		5,038		10,171		9,720
Operating lease expense		25,670		26,248		51,371		51,968

Amortization of right-of-use assets		1,210		1,159		2,455		2,301
Interest on lease liabilities		187		219		379		448
Finance lease expense		1,397		1,378		2,834		2,749
Total lease expense	$	27,067	$	27,626	$	54,205	$	54,717

Other information related to leases was as follows:


	26 Weeks Ended
	June 29, 2025			June 30, 2024
	(In thousands)
Operating cash flows from operating leases	$	42,003		$	43,604
Financing cash flows from finance leases		1,998			2,135
Operating cash flows from finance leases		406			477
Cash paid for amounts included in the measurement of lease liabilities	$	44,407		$	46,216

Right-of-use assets obtained in exchange for new finance lease liabilities	$	1,095		$	1,363
Right-of-use assets obtained in exchange for new operating lease liabilities	$	27,277		$	46,529
Weighted-average remaining lease term—finance leases	3.2 years			4.0 years
Weighted-average remaining lease term—operating leases	4.8 years			5.0 years
Weighted-average discount rate—finance leases		6.6	%		6.3	%
Weighted-average discount rate—operating leases		6.0	%		5.7	%

Maturities of finance and operating lease liabilities as of June 29, 2025 were as follows:


Fiscal Year Ending:	Finance Leases			Operating Leases
	(In thousands)
2025 (remaining six months)	$	2,177		$	42,518
2026		4,424			79,216
2027		3,163			59,100
2028		2,108			44,410
2029		672			35,665
Thereafter		17			45,916
Undiscounted cash flows	$	12,561		$	306,825
Reconciliation of lease liabilities:
Weighted-average remaining lease term	3.2 years			4.8 years
Weighted-average discount rate		6.6	%		6.0	%
Present values	$	11,286		$	266,184
Lease liabilities - current		3,686			66,920
Lease liabilities - long-term		7,600			199,264
Lease liabilities - total	$	11,286		$	266,184
Difference between undiscounted and discounted cash flows	$	1,275		$	40,641