v3.26.1
Segment Information
 3 Months Ended
Apr. 04, 2026
Segment Reporting [Abstract]  
Segment Information 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 operating and 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 loss, which is reported on the condensed consolidated statements of operations and comprehensive 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 provided to the CODM, is provided in the following tables for the periods presented (amounts in thousands):
13 Weeks Ended
April 4,
2026		March 29,
2025
Net sales$1,166,352 $1,125,567 
Less:
Cost of sales (1)
819,446 781,769 
Commission expenses (2)
169,368 161,720 
Other selling expenses (3)
78,217 74,530 
General and administrative expenses (4)
66,233 60,826 
Restructuring charges (5)
18,191 33,875 
Goodwill impairment
158,000 — 
Other segment items (6)
3,755 5,458 
Depreciation and amortization expenses31,156 29,897 
Interest income(1,175)(1,290)
Interest expense (7)
7,544 7,810 
Income tax benefit
(4,061)(5,711)
Net loss and comprehensive loss
$(180,322)$(23,317)
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(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 $1.7 million and $1.4 million for the first quarter of fiscal 2026 and fiscal 2025, respectively.
(2)Commission expenses represent commissions earned by 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 costs associated with the Optimization Plan and the Restructuring Plan. See Note 12 for additional information.
(6)Other segment items represents share-based compensation expense.
(7)Interest expense primarily includes interest on loans, amortization of debt issuance costs and debt discounts, and interest on finance leases, less capitalized interest. See Note 4 for further discussion.
13 Weeks Ended
April 4,
2026		March 29,
2025
Purchases of property and equipment$52,751 $60,452 
Investments in intangible assets and licenses4,049 4,834 
Total capital expenditures$56,800 $65,286