| Lessee, Operating Leases |
The Company generally leases office space and distribution centers in the United States through operating lease agreements. As of May 30, 2026, the Company had no finance lease agreements. Our leases have remaining lease terms up to 6 years and most include an option to renew for additional terms.
The Company’s lease costs recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss), respectively. consist of the following:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Thirteen Weeks Ended | | Thirty-Nine Weeks Ended | | (In thousands) | | Statements of Operations Caption | | May 30, 2026 | | May 31, 2025 | | May 30, 2026 | | May 31, 2025 | | Operating lease cost: | | | | | | | | | | | | Lease cost | | Cost of goods sold and General and administrative | | $ | 2,305 | | | $ | 2,504 | | | $ | 6,913 | | | $ | 6,923 | | Variable lease cost (1) | | Cost of goods sold and General and administrative | | 1,027 | | | 912 | | | 3,401 | | | 2,970 | | | Total operating lease cost | | | | 3,332 | | | 3,416 | | | 10,314 | | | 9,893 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total lease cost | | | | $ | 3,332 | | | $ | 3,416 | | | $ | 10,314 | | | $ | 9,893 | | (1) Variable lease cost primarily consists of common area maintenance, such as cleaning and repairs. |
The right-of-use assets and corresponding liabilities related to operating are as follows:
| | | | | | | | | | | | | | | | | | | | | | (In thousands) | | Balance Sheets Caption | | May 30, 2026 | | August 30, 2025 | | Assets | | | | | | | | Operating lease right-of-use assets | | Other long-term assets | | $ | 39,624 | | | $ | 44,118 | | | | | | | | | | Total lease assets | | | | $ | 39,624 | | | $ | 44,118 | | | Liabilities | | | | | | | | Current: | | | | | | | | Operating lease liabilities | | Accrued expenses and other current liabilities | | $ | 7,975 | | | $ | 5,867 | | | | | | | | | | Long-term: | | | | | | | | Operating lease liabilities | | Other long-term liabilities | | 43,452 | | | 49,494 | | | | | | | | | | Total lease liabilities | | | | $ | 51,427 | | | $ | 55,361 | |
Future maturities of lease liabilities as of May 30, 2026, were as follows:
| | | | | | | | | | (In thousands) | | Operating Leases | | Fiscal year ending: | | | | Remainder of 2026 | | $ | 2,696 | | | 2027 | | 10,927 | | | 2028 | | 10,388 | | | 2029 | | 10,438 | | | 2030 | | 10,549 | | | Thereafter | | 16,146 | | | Total lease payments | | 61,144 | | | Less: Interest | | (9,717) | | | Present value of lease liabilities | | $ | 51,427 | |
The weighted-average remaining lease terms and weighted-average discount rates for operating leases were as follows:
| | | | | | | | | | | | | | | | | May 30, 2026 | | August 30, 2025 | | Weighted-average remaining lease term (in years) | | | | | | Operating leases | | 5.59 | | 6.31 | | | | | | | Weighted-average discount rate | | | | | | Operating leases | | 6.0 | % | | 6.0 | % | | | | | |
Supplemental and other information related to operating leases was as follows:
| | | | | | | | | | | | | | | | | Thirty-Nine Weeks Ended | | (In thousands) | | May 30, 2026 | | May 31, 2025 | | Cash paid for amounts included in the measurement of lease liabilities: | | | | | | Operating cash flows from operating leases | | $ | 8,185 | | | $ | 7,925 | | | | | | | | | | | |
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