At the inception of the lease, the Company’s leases have remaining certain lease terms of up to 12 years, which typically includes multiple options for the Company to extend the lease which are not reasonably certain.

During 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 period ended August 2, 2025, these amounts are combined and presented as a single line item titled “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 fiscal year ended January 31, 2026, the Company entered into finance lease arrangements for cash management equipment, including money counting machines and store safes, utilized in retail store operations. These arrangements generally have initial lease terms of four years. The leased equipment is recognized as finance lease right-of-use assets with corresponding finance lease liabilities on the consolidated balance sheets. Lease expense is recognized through depreciation of the right-of-use assets and interest on the related lease liabilities over the lease term.

The Company has certain retail locations at which the leases provide for variable payments for common area maintenance, property taxes, insurance and rental payments based on future sales volumes at the leased location, which are not measurable at the inception of the lease. The Company recognizes variable lease expense for these leases in the period incurred.

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

During the 13 weeks ended May 2, 2026, the Company recorded a net non-cash decrease of $112 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
	May 2,		May 3,
	2026		2025
Operating lease expense	$	17,464	$	17,319
Finance lease expense	$	87	$	—
Variable lease expense		6,509		6,557
Short-term lease expense		148		101
Total lease expense	$	24,208	$	23,977

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


	Thirteen Weeks Ended
	May 2,		May 3,
	2026		2025
Operating cash flows from operating leases	$	19,116	$	18,265
Operating cash flows from finance leases		87		—


	As of May 2,			As of May 3,
	2026			2025
Right-of-use assets obtained in exchange for new or remeasured operating lease liabilities	$	(112	)	$	(3,953	)
Weighted-average remaining lease term (in years)
Operating leases		5.58			6.08
Finance leases		3.85			-
Weighted-average discount rate
Operating leases		7.3	%		7.4	%
Finance leases		0.05			-

In accordance with ASC 842, maturities of operating lease liabilities as of May 2, 2026 were as follows:


	Operating		Finance
Fiscal Year Ending:	Leases		Leases
2026 (remainder)	$	57,640	$	261
2027		71,906		348
2028		65,970		348
2029		56,807		261
2030		51,136		—
Thereafter		111,453		—
Undiscounted cash flows	$	414,912	$	1,218
Reconciliation of lease liabilities:
Present values	$	331,480	$	1,122
Lease liabilities - current		54,991		298
Lease liabilities - noncurrent		276,489		824
Lease liabilities - total	$	331,480	$	1,122
Difference between undiscounted and discounted cash flows	$	83,432	$	96