The Company leases all of its fulfillment and customer service centers and corporate offices under non-cancelable operating lease agreements. The terms of the Company’s real estate leases generally range from 5 to 15 years and typically allow for the leases to be renewed for up to three additional five-year terms. Fulfillment and customer service center, veterinary clinic, and corporate office leases expire at various dates through 2038, excluding renewal options. The Company also leases certain equipment under operating and finance leases. The terms of equipment leases generally range from 3 to 5 years and do not contain renewal options. These leases expire at various dates through 2025.

The Company’s finance leases as of August 3, 2025 and February 2, 2025 were not material and were included in property and equipment, net, on the Company’s condensed consolidated balance sheets.

The table below presents the operating lease-related assets and liabilities recorded on the condensed consolidated balance sheets (in millions):


		As of
Leases	Balance Sheet Classification	August 3, 2025		February 2, 2025
Assets
Operating	Operating lease right-of-use assets	$	442.4	$	450.4
Total operating lease assets		$	442.4	$	450.4

Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	35.3	$	33.5
Non-current
Operating	Operating lease liabilities	494.1		502.4
Total operating lease liabilities		$	529.4	$	535.9

For the twenty-six weeks ended August 3, 2025 and July 28, 2024, assets acquired in exchange for new operating lease liabilities were $10.4 million and $6.5 million, respectively. Lease expense primarily relates to operating lease costs and were included within selling, general and administrative expenses in the condensed consolidated statements of operations. Lease expense for the thirteen weeks ended August 3, 2025 and July 28, 2024 was $27.0 million and $26.8 million, respectively. Lease expense for the twenty-six weeks ended August 3, 2025 and July 28, 2024 was $54.2 million and $53.1 million, respectively.

Cash flows used in operating activities related to operating leases were approximately $54.0 million and $52.0 million for the twenty-six weeks ended August 3, 2025 and July 28, 2024, respectively.