| Leases |
8. Leases The Company does not own any real estate. Instead, most of its retail store locations are occupied under operating leases. The store leases generally have a base lease term of five or 10 years, with one or more renewal periods of five years, on average, exercisable at the Company’s option. The Company is generally responsible for the payment of property taxes and insurance, utilities, and common area maintenance fees. Some leases also require additional payments based on percentage of sales. Lease terms include the non-cancellable portion of the underlying leases along with any reasonably certain lease periods associated with available renewal periods, termination options, and purchase options. ROU assets are tested for impairment in the same manner as long-lived assets. The Company did not record ROU asset impairment charges related to its stores during the thirteen weeks ended June 28, 2025 and June 29, 2024. ROU assets and lease liabilities as of June 28, 2025 and March 29, 2025 consisted of the following: | | | | | | | | | | | | | June 28, 2025 | | March 29, 2025 | | | Balance Sheet Classification | | (in thousands) | | (in thousands) | Assets | | | | | | | | | Finance lease assets | | Right-of-use assets, net | | $ | 7,602 | | $ | 7,789 | Operating lease assets | | Right-of-use assets, net | | | 484,172 | | | 461,672 | Total lease assets | | | | $ | 491,774 | | $ | 469,461 | | | | | | | | | | Liabilities | | | | | | | | | Current | | | | | | | | | Finance | | Short-term lease liabilities | | $ | 967 | | $ | 948 | Operating | | Short-term lease liabilities | | | 75,881 | | | 71,913 | Total short-term lease liabilities | | | | $ | 76,848 | | $ | 72,861 | | | | | | | | | | Non-Current | | | | | | | | | Finance | | Long-term lease liabilities | | $ | 13,232 | | $ | 13,480 | Operating | | Long-term lease liabilities | | | 507,068 | | | 476,702 | Total long-term lease liabilities | | | | $ | 520,300 | | $ | 490,182 | Total lease liabilities | | | | $ | 597,148 | | $ | 563,043 |
Total lease costs for the thirteen weeks ended June 28, 2025 and June 29, 2024 were: | | | | | | | | | Thirteen Weeks Ended | (in thousands) | | June 28, 2025 | | June 29, 2024 | Finance lease cost | | | | | | | Amortization of right-of-use assets | | $ | 187 | | $ | 187 | Interest on lease liabilities | | | 152 | | | 162 | Total finance lease cost | | $ | 339 | | $ | 349 | | | | | | | | Operating lease cost | | $ | 25,136 | | $ | 21,422 | Short-term lease cost | | | 1,083 | | | 659 | Variable lease cost | | | 8,562 | | | 7,351 | Total lease cost | | $ | 35,120 | | $ | 29,781 |
The following table summarizes future lease payments as of June 28, 2025: | | | | | | | | | Operating Leases | | Finance Leases | Fiscal Year | | (in thousands) | | (in thousands) | 2026 (Remainder) | | $ | 64,670 | | | 1,171 | 2027 | | | 107,506 | | | 1,590 | 2028 | | | 97,403 | | | 1,629 | 2029 | | | 89,777 | | | 1,669 | 2030 | | | 80,937 | | | 1,709 | Thereafter | | | 280,861 | | | 9,517 | Total | | | 721,154 | | | 17,285 | Less: Imputed interest | | | (138,205) | | | (3,086) | Present value of net lease payments | | $ | 582,949 | | $ | 14,199 |
As of June 28, 2025, the Company’s minimum lease commitment for operating leases signed but not yet commenced was $135.8 million. The following table includes supplemental lease information: | | | | | | | | | | | Thirteen Weeks Ended | | Supplemental Cash Flow Information (dollars in thousands) | | June 28, 2025 | | | June 29, 2024 | | Cash paid for amounts included in the measurement of lease liabilities | | | | | | | | | Operating cash flows used for operating leases | | $ | 30,444 | | | $ | 21,387 | | Operating cash flows used for finance leases | | | 150 | | | | 160 | | Financing cash flows used for finance leases | | | 231 | | | | 212 | | | | $ | 30,825 | | | $ | 21,759 | | Lease liabilities arising from new right-of-use assets | | | | | | | | | Operating leases | | $ | 40,239 | | | $ | 35,201 | | Finance leases | | $ | — | | | $ | — | | | | | | | | | | | Weighted average remaining lease term (in years) | | | | | | | | | Operating leases | | | 7.8 | | | | 7.8 | | Finance leases | | | 10.2 | | | | 11.2 | | | | | | | | | | | Weighted average discount rate | | | | | | | | | Operating leases | | | 5.2 | % | | | 5.0 | % | Finance leases | | | 10.9 | % | | | 10.9 | % |
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