v3.25.2
Segment Reporting
 6 Months Ended
Jun. 28, 2025
Segment Reporting [Abstract]  
Segment Reporting Disclosure Segment Information
We are a retailer of quality, name-brand consumables and fresh products sold primarily through a network of independently operated stores. We manage our business on a consolidated basis and have one reportable segment. The accounting policies of the segment are the same as those described in the summary of significant accounting policies. In addition, all of our sales were made to customers located in the U.S. and all property and equipment is located in the U.S.
The chief operating decision maker ("CODM"), who is our President and Chief Executive Officer, assesses performance for the segment and decides how to allocate resources based on net income (loss) and comprehensive income (loss), which is reported on the condensed consolidated statements of operations and comprehensive income (loss). The CODM uses this measure in deciding where to reinvest profits and to monitor budget versus actual results. The measure of segment assets is reported on the condensed consolidated balance sheets as total assets.
Information for the segment, including the significant expenses regularly reviewed by the CODM, is provided in the following tables for the periods indicated (amounts in thousands):
13 Weeks Ended26 Weeks Ended
June 28,
2025		June 29,
2024		June 28,
2025		June 29,
2024
Net sales$1,179,772 $1,128,520 $2,305,339 $2,165,464 
Less:
Cost of sales (1)
817,575 778,174 1,599,344 1,510,315 
Commission expenses (2)
169,691 167,049 331,411 327,839 
Other selling expenses (3)
78,965 68,963 153,495 124,967 
General and administrative expenses (4)
56,318 54,683 117,144 109,098 
Restructuring charges (5)
11,157 — 45,032 — 
Other segment items (6)
1,960 7,001 7,418 15,143 
Depreciation and amortization expenses31,334 26,545 61,231 51,434 
Interest income
(1,841)(1,865)(3,605)(4,690)
Interest expense
8,385 7,424 16,669 13,425 
Income tax expense (benefit)
1,267 6,545 (4,444)4,957 
Net income (loss) and comprehensive income (loss)
$4,961 $14,001 $(18,356)$12,976 
_______________________
(1)Cost of sales includes merchandise costs, inventory markdowns, inventory losses, transportation costs and distribution and warehousing costs and excludes depreciation and amortization expenses, which were $1.5 million and $1.1 million for the 13 weeks ended June 28, 2025 and June 29, 2024, respectively, and $2.9 million and $2.0 million for the 26 weeks ended June 28, 2025 and June 29, 2024, respectively.
(2)Commission expenses represent commissions paid to IOs.
(3)Other selling expenses include occupancy for all stores, our portion of maintenance costs for IO stores, the cost of opening new IO stores and payroll, benefits, maintenance, supplies and utilities for company-operated stores.
(4)General and administrative expenses include payroll and benefits for corporate and field support, marketing and advertising, insurance and professional services and operator recruiting and training costs.
(5)Restructuring charges include lease termination costs, non-cash impairment and disposal of long-lived assets, employee severance and benefit costs and legal, professional and other costs related to the Restructuring Plan, as defined in Note 11.
(6)Other segment items represents share-based compensation expenses.
26 Weeks Ended
June 28,
2025		June 29,
2024
Purchases of property and equipment$119,669 $85,131 
Investments in intangible assets and licenses10,801 6,532 
Total capital expenditures$130,470 $91,663