v3.26.1
Leases
3 Months Ended
Jun. 27, 2026
Leases  
Leases

8. Leases

The Company does not own any real estate. Instead, most of its retail store locations are occupied under operating leases. The store leases generally have a base lease term of five or 10 years, with one or more renewal periods of five years, on average, exercisable at the Company’s option. The Company is generally responsible for the payment of property taxes and insurance, utilities, and common area maintenance fees. Some leases also require additional payments based on percentage of sales. Lease terms include the non-cancellable portion of the underlying leases along with any reasonably certain lease periods associated with available renewal periods, termination options, and purchase options.

ROU assets are tested for impairment in the same manner as long-lived assets. The Company did not record ROU asset impairment charges related to its stores during the thirteen weeks ended June 27, 2026 and June 28, 2025.

ROU assets and lease liabilities as of June 27, 2026 and March 28, 2026 consisted of the following:

June 27, 2026

March 28, 2026

Balance Sheet Classification

(in thousands)

(in thousands)

Assets

Finance lease assets

Right-of-use assets, net

$

6,855

$

7,042

Operating lease assets

Right-of-use assets, net

 

660,396

 

631,383

Total lease assets

$

667,251

$

638,425

Liabilities

 

 

Current

Finance

Short-term lease liabilities

$

1,048

$

1,027

Operating

Short-term lease liabilities

87,509

88,716

Total short-term lease liabilities

$

88,557

$

89,743

Non-Current

Finance

Long-term lease liabilities

$

12,184

$

12,453

Operating

Long-term lease liabilities

705,308

671,284

Total long-term lease liabilities

$

717,492

$

683,737

Total lease liabilities

$

806,049

$

773,480

Total lease costs for the thirteen weeks ended June 27, 2026 and June 28, 2025 were:

Thirteen Weeks Ended

(in thousands)

  ​

June 27, 2026

June 28, 2025

Finance lease cost

Amortization of right-of-use assets

$

187

$

187

Interest on lease liabilities

142

152

Total finance lease cost

$

329

$

339

Operating lease cost

$

32,640

$

25,136

Short-term lease cost

1,078

1,083

Variable lease cost

10,542

8,562

Total lease cost

$

44,589

$

35,120

The following table summarizes future lease payments as of June 27, 2026:

Operating Leases

Finance Leases

Fiscal Year

(in thousands)

(in thousands)

2027 (Remainder)

$

70,842

1,200

2028

 

140,456

1,629

2029

 

134,132

1,669

2030

126,137

1,709

2031

117,540

1,751

Thereafter

 

402,383

7,766

Total

991,490

15,724

Less: Imputed interest

(198,673)

(2,492)

Present value of net lease payments

$

792,817

$

13,232

As of June 27, 2026, the Company’s minimum lease commitment for operating leases signed but not yet commenced was $157.7 million.

The following table includes supplemental lease information:

  ​ ​ ​

Thirteen Weeks Ended

Supplemental Cash Flow Information (dollars in thousands)

June 27, 2026

June 28, 2025

Cash paid for amounts included in the measurement of lease liabilities

Operating cash flows used for operating leases

$

39,893

$

30,444

Operating cash flows used for finance leases

 

140

 

150

Financing cash flows used for finance leases

251

231

$

40,284

$

30,825

Lease liabilities arising from new right-of-use assets

Operating leases

$

51,092

$

40,239

Finance leases

$

$

Weighted average remaining lease term (in years)

Operating leases

7.9

7.8

Finance leases

9.2

10.2

Weighted average discount rate

Operating leases

5.4

%

5.2

%

Finance leases

10.9

%

10.9

%