The Company’s operating leases typically have terms of up to 15 years, with multiple options for the Company to extend the lease.

The Company determines whether a contract is or contains a lease at contract inception. As the rate implicit in the lease is not readily determinable in most of the Company’s leases, the Company uses its incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. The Company’s incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The operating lease asset also includes any fixed lease payments made and includes lease incentives and incurred initial direct costs. Operating lease expense for fixed lease payments is recognized on a straight-line basis over the lease term. The Company’s lease terms may include options to extend or terminate the lease. Additionally, the Company’s leases do not contain any material residual guarantees or material restrictive covenants.

For the period ended August 2, 2025, the Company changed the presentation of certain lease-related items within the Operating Activities section of the Statement of Cash Flows. Previously, changes in noncash lease expense and changes in operating lease liabilities were presented as separate line items. Beginning with the current quarter, these amounts are combined and presented as a single line item titled “Operating lease assets and liabilities.”

The change was made to streamline the presentation and provide a more concise view of lease-related operating cash flow activity. Prior period amounts have been reclassified to conform to the current period presentation. This change had no impact on total net cash provided by operating activities.

During the 13 and 26 weeks ended August 2, 2025, the Company recorded non-cash decreases of $8 and $3,961, respectively, to the right of use assets and operating lease liabilities resulting from lease remeasurements from the exercise of lease extension options, acquired leases, new leases added and lease amendments.

In accordance with ASC 842, total lease expense was comprised of the following for the periods presented:


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	August 2,		August 3,		August 2,		August 3,
	2025		2024		2025		2024
Operating lease expense	$	17,343	$	17,123	$	34,662	$	34,159
Variable lease expense		6,061		6,129		12,618		12,357
Short-term lease expense		79		100		180		234
Total lease expense	$	23,483	$	23,352	$	47,460	$	46,750

In accordance with ASC 842, other information related to leases was as follows for the periods presented:


	Twenty-Six Weeks Ended
	August 2,		August 3,
	2025		2024
Operating cash outflows from operating leases	$	36,532	$	37,226


	As of August 2,			As of August 3,
	2025			2024

Noncash change in operating lease right-of-use asset and operating lease liabilities from remeasurement of existing leases and addition of new leases	$	(3,961	)	$	12,681
Terminated right-of-use assets and liabilities		—			—
Weighted-average remaining lease term - operating leases		6.17			6.00
Weighted-average discount rate - operating leases		7.34	%		7.63	%

In accordance with ASC 842, maturities of operating lease liabilities as of August 2, 2025 were as follows:


	Operating
Fiscal Year Ending:	Leases
2025 (remainder)	$	37,577
2026		75,434
2027		68,808
2028		63,224
2029		54,047
Thereafter		153,822
Undiscounted cash flows	$	452,912
Reconciliation of lease liabilities:
Present values	$	355,547
Lease liabilities - current		52,263
Lease liabilities - noncurrent		303,284
Lease liabilities - total	$	355,547
Difference between undiscounted and discounted cash flows	$	97,365