v3.26.1
Segment Information
 6 Months Ended
Jul. 04, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
We are a retailer of quality, name-brand consumables and fresh products sold primarily through a network of independently operated stores. We manage our business on a consolidated basis and have one operating and one reportable segment. The accounting policies of the segment are the same as those described in the summary of significant accounting policies. In addition, all of our sales were made to customers located in the U.S. and all property and equipment is located in the U.S.
The chief operating decision maker ("CODM"), who is our President and Chief Executive Officer, assesses performance for the segment and decides how to allocate resources based on net income (loss), which is reported on the condensed consolidated statements of operations and comprehensive income (loss). The CODM uses this measure in deciding where to reinvest profits and to monitor budget versus actual results. The measure of segment assets is reported on the condensed consolidated balance sheets as total assets.
Information for the segment, including the significant expenses regularly provided to the CODM, is provided in the following tables for the periods presented (amounts in thousands):
13 Weeks Ended26 Weeks Ended
July 4,
2026		June 28,
2025		July 4,
2026		June 28,
2025
Net sales$1,192,764 $1,179,772 $2,359,116 $2,305,339 
Less:
Cost of sales (1)
830,115 817,575 1,649,561 1,599,344 
Commission expenses (2)
168,889 169,691 338,257 331,411 
Other selling expenses (3)
76,316 78,965 154,533 153,495 
General and administrative expenses (4)
60,367 56,318 126,600 117,144 
Restructuring charges, net (5)
5,428 11,157 23,619 45,032 
Goodwill impairment
— — 158,000 — 
Other segment items (6)
3,768 1,960 7,523 7,418 
Depreciation and amortization expenses32,115 31,334 63,271 61,231 
Interest income(1,079)(1,232)(2,254)(2,522)
Interest expense (7)
7,651 7,776 15,195 15,586 
Income tax expense (benefit)
3,568 1,267 (493)(4,444)
Net income (loss) and comprehensive income (loss)
$5,626 $4,961 $(174,696)$(18,356)
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(1)Cost of sales includes merchandise costs, inventory markdowns, inventory losses, transportation costs and distribution and warehousing costs and excludes depreciation and amortization expenses, which were $1.9 million and $1.5 million for the second quarter of fiscal 2026 and fiscal 2025, respectively, and $3.6 million and $2.9 million for the first half of fiscal 2026 and fiscal 2025, respectively.
(2)Commission expenses represent commissions earned by IOs.
(3)Other selling expenses include occupancy for all stores, our portion of maintenance costs for IO stores, the cost of opening new IO stores and payroll, benefits, maintenance, supplies and utilities for company-operated stores.
(4)General and administrative expenses include payroll and benefits for corporate and field support, marketing and advertising, insurance and professional services and operator recruiting and training costs.
(5)Net restructuring charges include net costs associated with the Optimization Plan and the Restructuring Plan. See Note 12 for additional information.
(6)Other segment items represents share-based compensation expense.
(7)Interest expense primarily includes interest on loans, amortization of debt issuance costs and debt discounts, and interest on finance leases, less capitalized interest. See Note 4 for further discussion.
26 Weeks Ended
July 4,
2026		June 28,
2025
Purchases of property and equipment$94,507 $119,669 
Investments in intangible assets and licenses5,969 10,801 
Total capital expenditures$100,476 $130,470