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 inventory write-downs, asset disposals and asset impairment charges.

During the 13 weeks ended May 2, 2026 and May 3, 2025, restructuring and related charges of $7.5 million and $19.0 million, respectively, were recognized, primarily related to severance and other employee-related costs, as well as store closure costs. The Company had accrued restructuring charges related to the Plan of $6.3 million as of May 2, 2026 (January 31, 2026 and May 3, 2025: $10.2 million and $18.2 million, respectively), primarily for severance, which are included in accrued expenses and other current liabilities in the condensed consolidated balance sheets.

The following table summarizes the restructuring and related charges incurred for the Plan, which are recorded within other operating expense, net in the condensed consolidated statements of operations for the 13 weeks ended May 2, 2026 and May 3, 2025, as well as the cumulative amount incurred under the Plan through May 2, 2026:


(in millions)	Employee-related costs		Store closure and other costs		Total
Balance at January 31, 2026	$	10.2	$	—	$	10.2
Payments and other adjustments	(7.4)		(4.0)		(11.4)
Charged to expense	2.7		4.8		7.5
Balance at May 2, 2026	$	5.5	$	0.8	$	6.3

In addition to the charges described above, the Company incurred $32.7 million of inventory write-down charges during the 13 weeks ended May 2, 2026. These charges are associated with the planned disposal of inventory in connection with the discontinuance of James Allen and Rocksbox as separately operated brands and the decommissioning of their respective websites as these brands are transitioned to collections within remaining brands as part of the initiatives under the Plan. These charges are recorded within cost of sales in the condensed consolidated statements of operations. The Company also incurred $1.5 million and $3.2 million of asset impairment charges during the 13 weeks ended May 2, 2026 and May 3, 2025, respectively, as a result of the Plan. These charges were incurred primarily for store assets, which are recorded within other operating expense, net in the condensed consolidated statements of operations. The cumulative amount of asset impairment charges incurred under the Plan total $18.2 million through May 2, 2026.

Total estimated costs related to the Plan are expected to range from approximately $90 million to $100 million, including approximately $55 million to $60 million of estimated non-cash charges primarily for inventory write-downs, asset disposals and impairments. The Company expects the Plan will be substantially completed by the end of Fiscal 2027.