The weighted-average discount rate as of May 2, 2026, and May 3, 2025 was 5.1% and 5.0%, respectively. The discount rate is not readily determinable in the lease; therefore, the Company estimated the incremental borrowing rate, at the commencement date of each lease, which is the rate of interest it would have to borrow on a collateralized basis over a similar term with similar payments.

As of May 2, 2026, the Company had one lease which was executed but for which it did not have control of the underlying asset; therefore, the lease liability and right-of-use asset are not recorded on the Condensed Consolidated Balance Sheet. This lease contains undiscounted lease payments, which will be included in the determination of the lease liability, totaling approximately $1.2 million and has a term of approximately 3 years commencing in fiscal year 2027.

The following lease expense is recorded within cost of sales for the Asia sourcing office and certain equipment leases and within selling, general, and administrative expenses for all other leases, including retail store leases, in the Company's Condensed Consolidated Statement of Operations for the thirteen weeks ended May 2, 2026 and May 3, 2025 (in thousands):


	Thirteen Weeks Ended
		May 2, 2026		May 3, 2025
Operating lease cost		$	5,846	$	6,358
Variable lease cost		1,102		1,084
Short-term lease cost		61		112
Less: Sublease income (1)		(102)		(105)
Total net lease cost		$	6,907	$	7,449
(1) Related to the sublease of a former Company location.

Supplemental operating cash flow information was as follows (in thousands):


	Thirteen Weeks Ended
	May 2, 2026		May 3, 2025
Cash paid for amounts included in the measurement of operating lease liabilities(1)	$	6,522	$	7,126
Right-of-use assets increase as a result of new and modified operating lease liabilities, net	$	339	$	1,571

(1) $1.1 million and $2.7 million of lease liabilities were recorded within accounts payable on the Company's Consolidated Balance Sheets as of May 2, 2026 and May 3, 2025, and were subsequently paid in the month following the end of each respective period.