During the first quarter of Fiscal 2026, the Company announced its new corporate strategy, Grow Brand Love. In connection with this strategic transformation, the Company has reorganized its brand structure and certain functional areas primarily within its North America reportable segment, and the Company is optimizing its store fleet by exiting underperforming stores and repositioning stores from declining venues (the “Plan”). As a result of the Plan, the Company expects to incur restructuring and related costs, primarily consisting of severance and other employee-related costs, contract termination costs, and store closure costs, including asset disposals and asset impairment charges.

During Fiscal 2026, restructuring and related charges of $26.5 million were recognized, primarily related to severance and other employee-related costs as well as store closure costs. Plan liabilities of $10.2 million were recorded within accrued expenses and other current liabilities in the consolidated balance sheet as of January 31, 2026, primarily consisting of employee severance costs.

The following table summarizes the restructuring and related charges incurred for the Plan, which are recorded within other operating (expense) income, net in the consolidated statements of operations, during Fiscal 2026:

In addition to the charges described above, the Company incurred $16.7 million of non-cash asset impairment charges as a result of the Plan, primarily for store assets and cloud computing arrangements as further described in Note 14, which are recorded within asset impairments, net in the consolidated statements of operations.


(in millions)	Employee-related costs		Store closure and other costs		Total






Balance at February 1, 2025	$	—	$	—	$	—
Payments and other adjustments	(12.5)		(3.8)		(16.3)
Charged to expense	22.7		3.8		26.5
Balance at January 31, 2026	$	10.2	$	—	$	10.2

Total estimated costs related to the Plan are expected to range from approximately $50 million to $60 million, including approximately $25 million to $30 million of estimated non-cash charges primarily for asset disposals and impairments. The Company expects the Plan will be substantially completed by the end of Fiscal 2027.

During the second quarter of Fiscal 2024, the Company initiated a plan to rationalize its store footprint across the Company, as well as to reorganize certain centralized functions within its North America and UK support centers (collectively, the “Fiscal 2024 Plan”).

During the first quarter of Fiscal 2025, as a result of the continued strategic review of the UK business, the Company expanded the Fiscal 2024 Plan in order to further redesign the operating model of the UK business aimed at improving profitability, with margins in line with the rest of the business within the next three years. The store footprint reduction included the closure of approximately 150 underperforming stores across both the North America and International reportable segments through the end of Fiscal 2025 and resulted in costs primarily for severance and asset disposals or impairment. The reorganization of certain support functions included the elimination of certain roles resulting in expenses primarily related to severance and other employee-related costs. Restructuring activities related to the Fiscal 2024 Plan were substantially completed in Fiscal 2025.

During Fiscal 2025 and Fiscal 2024, the Company recorded charges related to the Fiscal 2024 Plan of $14.2 million and $11.3 million, respectively, consisting of the following: $6.4 million and $5.4 million, respectively, for employee-related costs; $5.1 million and $1.6 million, respectively, for store closure costs; and $2.7 million and $4.3 million, respectively, related to asset impairments. Employee-related and store closure costs are recorded within other operating (expense) income, net and asset impairments are recorded within asset impairments, net within the consolidated statements of operations. There are no significant liabilities related to the Fiscal 2024 Plan remaining as of January 31, 2026.

Cumulative costs to date related to the Fiscal 2024 Plan are $25.5 million, consisting of the following: $11.8 million for employee-related costs; $6.7 million for store closure costs; and $7.0 million related to asset impairments.