v3.26.1
LEASES
 12 Months Ended
Jun. 27, 2026
Leases [Abstract]  
LEASES LEASES
The Company leases retail space, office space, warehouse facilities, fulfillment centers, storage space, machinery, equipment and certain other items under operating leases. The Company's leases have initial terms ranging from one to twenty years and may have renewal or early termination options ranging from one to ten years. These leases may also include rent escalation clauses or lease incentives. In determining the lease term used in the lease ROU asset and lease liability calculations, the Company considers various factors such as market conditions and the terms of any renewal or termination options that may exist. When deemed reasonably certain, the renewal and termination options are included in the determination of the lease term and calculation of the lease ROU asset and lease liability. The Company is typically required to make fixed minimum rent payments, variable rent payments primarily based on performance (i.e., percentage-of-sales-based payments), or a combination thereof, directly related to its ROU asset. The Company is also often required, by the lease, to pay for certain other costs including real estate taxes, insurance, common area maintenance fees and/or certain other costs, which may be fixed or variable, depending upon the terms of the respective lease agreement. To the extent these payments are fixed, the Company has included them in calculating the lease ROU assets and lease liabilities.
The Company calculates lease ROU assets and lease liabilities as the present value of fixed lease payments over the reasonably certain lease term beginning at the commencement date. The Company is required to use the implicit rate to determine the present value of lease payments. As the rate implicit in the Company's leases is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the lease commencement date, including the Company's credit rating, credit spread and adjustments for the impact of collateral, lease tenors, economic environment and currency.
For operating leases, fixed lease payments are recognized as operating lease cost on a straight-line basis over the lease term. For finance leases and impaired operating leases, the ROU asset is depreciated on a straight-line basis over the remaining lease term, along with recognition of interest expense associated with accretion of the lease liability. For leases with a lease term of 12 months or less ("short-term lease"), any fixed lease payments are recognized on a straight-line basis over such term and are not recognized on the Consolidated Balance Sheets. Variable lease cost for both operating and finance leases, if any, is recognized as incurred.
The Company acts as sublessor in certain leasing arrangements, primarily related to a sublease of a portion of the Company's leased headquarters space as well as certain retail locations. Fixed sublease payments received are recognized on a straight-line basis over the sublease term.
ROU assets, along with any other related long-lived assets, are periodically evaluated for impairment.
The following table summarizes the composition of net lease costs, primarily recorded within SG&A expenses on the Company's Consolidated Statement of Operations for the fiscal years ended June 27, 2026 and June 28, 2025:
Fiscal Year Ended
June 27, 2026June 28, 2025
(millions)
Finance lease cost:
Amortization of right-of-use assets$— $1.2 
Interest on lease liabilities(1)
— 0.1 
Total finance lease cost— 1.3 
Operating lease cost378.0 360.6 
Short-term lease cost15.4 22.8 
Variable lease cost232.1 204.8 
Operating lease right-of-use impairment0.8 3.0 
Less: sublease income(14.7)(16.4)
Total net lease cost$611.6 $576.1 
(1)    Interest on lease liabilities is recorded within Interest expense, net on the Company's Consolidated Statement of Operations.
The following table summarizes certain cash flow information related to the Company's leases for the fiscal year ended June 27, 2026 and June 28, 2025:
Fiscal Year Ended
June 27, 2026June 28, 2025
(millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$423.2 $414.8 
Operating cash flows from finance leases— 0.1 
Financing cash flows from finance leases— 1.2 
Non-cash transactions:
Right-of-use assets obtained in exchange for operating lease liabilities413.8 327.7 
The following table provides a maturity analysis of the Company's operating lease liabilities recorded on the Consolidated Balance Sheets as of June 27, 2026:
June 27, 2026
(millions)
Fiscal 2027$365.5 
Fiscal 2028306.8 
Fiscal 2029243.1 
Fiscal 2030197.5 
Fiscal 2031145.9 
Fiscal 2032 and thereafter588.6 
Total operating lease payments1,847.4 
Less: imputed interest(273.4)
Total operating lease liabilities$1,574.0 
The future minimum fixed sublease receipts under non-cancelable operating lease agreements as of June 27, 2026 are as follows:
June 27, 2026
(millions)
Fiscal 2027$14.8 
Fiscal 202814.8 
Fiscal 202915.3 
Fiscal 203016.0 
Fiscal 203116.0 
Fiscal 2032 and thereafter80.2 
Total sublease income $157.1 
The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates related to the Company's operating leases recorded on the Consolidated Balance Sheets as of June 27, 2026 and June 28, 2025:
June 27, 2026June 28, 2025
Operating leases:
Weighted average remaining lease term (years)7.47.4
Weighted average discount rate4.4 %4.4 %
Additionally, the Company had approximately $189.8 million of future payment obligations related to executed lease agreements for which the related lease had not yet commenced as of June 27, 2026.
LEASES LEASES
The Company leases retail space, office space, warehouse facilities, fulfillment centers, storage space, machinery, equipment and certain other items under operating leases. The Company's leases have initial terms ranging from one to twenty years and may have renewal or early termination options ranging from one to ten years. These leases may also include rent escalation clauses or lease incentives. In determining the lease term used in the lease ROU asset and lease liability calculations, the Company considers various factors such as market conditions and the terms of any renewal or termination options that may exist. When deemed reasonably certain, the renewal and termination options are included in the determination of the lease term and calculation of the lease ROU asset and lease liability. The Company is typically required to make fixed minimum rent payments, variable rent payments primarily based on performance (i.e., percentage-of-sales-based payments), or a combination thereof, directly related to its ROU asset. The Company is also often required, by the lease, to pay for certain other costs including real estate taxes, insurance, common area maintenance fees and/or certain other costs, which may be fixed or variable, depending upon the terms of the respective lease agreement. To the extent these payments are fixed, the Company has included them in calculating the lease ROU assets and lease liabilities.
The Company calculates lease ROU assets and lease liabilities as the present value of fixed lease payments over the reasonably certain lease term beginning at the commencement date. The Company is required to use the implicit rate to determine the present value of lease payments. As the rate implicit in the Company's leases is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the lease commencement date, including the Company's credit rating, credit spread and adjustments for the impact of collateral, lease tenors, economic environment and currency.
For operating leases, fixed lease payments are recognized as operating lease cost on a straight-line basis over the lease term. For finance leases and impaired operating leases, the ROU asset is depreciated on a straight-line basis over the remaining lease term, along with recognition of interest expense associated with accretion of the lease liability. For leases with a lease term of 12 months or less ("short-term lease"), any fixed lease payments are recognized on a straight-line basis over such term and are not recognized on the Consolidated Balance Sheets. Variable lease cost for both operating and finance leases, if any, is recognized as incurred.
The Company acts as sublessor in certain leasing arrangements, primarily related to a sublease of a portion of the Company's leased headquarters space as well as certain retail locations. Fixed sublease payments received are recognized on a straight-line basis over the sublease term.
ROU assets, along with any other related long-lived assets, are periodically evaluated for impairment.
The following table summarizes the composition of net lease costs, primarily recorded within SG&A expenses on the Company's Consolidated Statement of Operations for the fiscal years ended June 27, 2026 and June 28, 2025:
Fiscal Year Ended
June 27, 2026June 28, 2025
(millions)
Finance lease cost:
Amortization of right-of-use assets$— $1.2 
Interest on lease liabilities(1)
— 0.1 
Total finance lease cost— 1.3 
Operating lease cost378.0 360.6 
Short-term lease cost15.4 22.8 
Variable lease cost232.1 204.8 
Operating lease right-of-use impairment0.8 3.0 
Less: sublease income(14.7)(16.4)
Total net lease cost$611.6 $576.1 
(1)    Interest on lease liabilities is recorded within Interest expense, net on the Company's Consolidated Statement of Operations.
The following table summarizes certain cash flow information related to the Company's leases for the fiscal year ended June 27, 2026 and June 28, 2025:
Fiscal Year Ended
June 27, 2026June 28, 2025
(millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$423.2 $414.8 
Operating cash flows from finance leases— 0.1 
Financing cash flows from finance leases— 1.2 
Non-cash transactions:
Right-of-use assets obtained in exchange for operating lease liabilities413.8 327.7 
The following table provides a maturity analysis of the Company's operating lease liabilities recorded on the Consolidated Balance Sheets as of June 27, 2026:
June 27, 2026
(millions)
Fiscal 2027$365.5 
Fiscal 2028306.8 
Fiscal 2029243.1 
Fiscal 2030197.5 
Fiscal 2031145.9 
Fiscal 2032 and thereafter588.6 
Total operating lease payments1,847.4 
Less: imputed interest(273.4)
Total operating lease liabilities$1,574.0 
The future minimum fixed sublease receipts under non-cancelable operating lease agreements as of June 27, 2026 are as follows:
June 27, 2026
(millions)
Fiscal 2027$14.8 
Fiscal 202814.8 
Fiscal 202915.3 
Fiscal 203016.0 
Fiscal 203116.0 
Fiscal 2032 and thereafter80.2 
Total sublease income $157.1 
The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates related to the Company's operating leases recorded on the Consolidated Balance Sheets as of June 27, 2026 and June 28, 2025:
June 27, 2026June 28, 2025
Operating leases:
Weighted average remaining lease term (years)7.47.4
Weighted average discount rate4.4 %4.4 %
Additionally, the Company had approximately $189.8 million of future payment obligations related to executed lease agreements for which the related lease had not yet commenced as of June 27, 2026.