Leases |
6 Months Ended |
|---|---|
Aug. 01, 2026 | |
| Leases [Abstract] | |
| Leases | Leases Distribution Center Sale-Leaseback In July 2026, the Company exercised its fixed-price purchase option under an existing lease to purchase the underlying land and building for the Company’s new ambient distribution center in Ohio. The Company concurrently assigned its rights under the resulting purchase and sale agreement to an unrelated third party (the “Buyer”) for total cash consideration of $122.1 million. The transaction met the criteria for sale accounting and was executed at market terms. The Company recognized a gain of $10.6 million which represented the excess of sale proceeds, net of transaction costs, over the net carrying values of the derecognized assets and liabilities. The gain was recognized as a reduction of selling, general, and administrative expenses in the consolidated statements of operations for the thirteen and twenty-six weeks ended August 1, 2026. The Company executed a lease with the Buyer, which has an initial term of 25 years and four five-year renewal options that were excluded from the lease term as they are not reasonably certain to be exercised. At commencement, the Company recorded an operating lease right-of-use asset and corresponding operating lease liability of $93.6 million. Assets Held for Sale In July 2026, the Company executed a letter of intent for the sale and leaseback of two of the Company’s owned retail properties. The Company expects the transaction to close in the second half of fiscal year 2026 for cash consideration and determined the underlying assets meet the held-for-sale criteria. The Company reclassified the net carrying value of property and equipment totaling $44.9 million to prepaid expenses and other current assets in the condensed consolidated balance sheet as of August 1, 2026. Assets held for sale are recorded at the lower of their carrying value or fair value less costs to sell, are reassessed at each reporting date, and are no longer depreciated. No impairment loss was recognized upon reclassification. The Company expects the leases to be classified as operating leases at commencement.
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