16. RESTRUCTURING

In May 2024, the Company initiated certain restructuring actions designed to reduce costs and improve efficiency while continuing to invest in our brand and related initiatives (the “Productivity Initiative”). As part of the ongoing Productivity Initiative, in January 2025, the Company approved a reduction in workforce. As a result, the Company recognized less than $0.1 million and $2.2 million of costs primarily related to employee termination expenses for the three and six months ended June 30, 2025, respectively. Restructuring charges related to the Productivity Initiative were completed as of December 31, 2025. 

In the second quarter of 2026, the Company initiated a restructuring plan aimed at improving the efficiency of its warehouse operations and optimizing its warehouse footprint. The plan includes transitioning to a more efficient warehouse location and streamlining related logistics activities. For the three and six months ended June 30, 2026, the Company recognized $1.0 million of costs primarily consisting of contract termination costs and freight costs to transfer inventories. These amounts are included under restructuring in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss. As of  June 30, 2026, accrued restructuring costs of $0.3 million and $0.2 million, respectively, are included under accounts payable and accrued expenses and other current liabilities in the unaudited condensed consolidated balance sheets. As of December 31, 2025, accrued restructuring costs of $0.5 million are included under accrued expenses and other current liabilities in the unaudited condensed consolidated balance sheets. These expenses are expected to be substantially paid by the end of 2026.