On March 11, 2025, the Company completed the sale of Creative Genius pursuant to an Interest Purchase Agreement (the “Agreement”) to sell one hundred percent (100%) of Creative Genius, which operates under the name Pura Vida Bracelets. The sale consummated on March 31, 2025. In connection with the transaction, the Company received total consideration of $3.5 million, consisting of a combination of cash consideration, subject to net working capital and net cash adjustments, as well as contingent consideration.

At closing, the Company received cash proceeds of $0.9 million, in addition, the Company is entitled to receive contingent consideration with an estimated fair value of $2.5 million, based on the present value of expected future payments. The remaining contingent consideration receivable was $1.8 million as of May 2, 2026. The contingent consideration is calculated as 5% of total sales generated by the divested business, as operated by the buyer, net of customary shipping costs, during the earn-out period specified in the agreement. The earn-out period and related terms are consistent with customary provisions for transactions of this nature. The fair value of the contingent consideration was determined using a probability-weighted discounted cash flow analysis based on internal projections of the

The Company will assess changes in the fair value of the contingent consideration at each reporting date, with any adjustments recognized in earnings in the period in which such changes are identified.

The Company recorded a net loss on disposal of $15.2 million for the thirteen weeks ended May 3, 2025. The loss on sale is presented as part of results of the discontinued operations.

The results of operations for the Pura Vida business is reported as discontinued operations in the Consolidated Statements of Operations for all periods presented in this Form 10-Q. This business was historically presented as its own reportable segment.


	Thirteen Weeks Ended
		May 2, 2026		May 3, 2025
Net revenues		$	—	$	5,553
Cost of sales		—		2,167
Gross profit		—		3,386
Selling, general, and administrative expenses		—		3,244

Other expense, net (1)		—		(15,342)
Operating loss from discontinued operations		—		(15,200)
Interest income, net		—		—
Loss from discontinued operations before income taxes		—		(15,200)
Income tax expense		—		—
Loss from discontinued operations		—		(15,200)
(1) Includes $15.2 million loss on sale of discontinued operations recorded during the thirteen weeks ended May 3, 2025.

The following table presents cash flows from operating and investing activities for discontinued operations for the thirteen weeks ended May 2, 2026 and May 3, 2025:


	Thirteen Weeks Ended
	May 2, 2026		May 3, 2025
Cash used in operating activities - discontinued operations	$	—	$	(2,115)
Cash provided by investing activities - discontinued operations	—		2