| Segment Reporting and Entity-Wide Information |
(11) | Segment Reporting and Entity-Wide Information |
For purposes of the disclosure requirements for segments of a business enterprise, it has been determined that the Company is comprised of one operating segment and one reportable segment. The Company’s chief operating decision maker (the “CODM”) is the Chief Executive Officer. The CODM regularly reviews operations and financial performance at a consolidated level, for purposes of assessing performance and allocating resources. The CODM uses net income to allocate resources for the single segment to make decisions regarding annual budget, new store openings, landlord and vendor negotiations, marketing decisions, pursuing new business ventures, and driving the Company’s values. The CODM reviews asset information on a consolidated basis. The following table summarizes the percentage of net sales by each product group for each period presented: | | | | | | | | | | | | | | | | | | | | | | | | | | Thirteen weeks ended | | | Twenty-six weeks ended | | | | | August 1, | | August 2, | | | August 1, | | August 2, | | | | | 2026 | | 2025 | | | 2026 | | 2025 | | | | | | (in thousands) | | | (in thousands) | | | Consumables | | $ | 225,119 | | 30.4 | % | $ | 197,814 | | 29.1 | % | | $ | 452,062 | | 32.3 | % | $ | 386,724 | | 30.8 | % | | Home | | | 186,754 | | 25.2 | % | | 181,853 | | 26.8 | % | | | 374,245 | | 26.7 | % | | 354,525 | | 28.2 | % | | Seasonal | | | 186,955 | | 25.2 | % | | 164,408 | | 24.2 | % | | | 304,966 | | 21.8 | % | | 266,891 | | 21.2 | % | | Other | | | 142,477 | | 19.2 | % | | 135,481 | | 19.9 | % | | | 268,960 | | 19.2 | % | | 248,183 | | 19.8 | % | | Total | | $ | 741,305 | | 100.0 | % | $ | 679,556 | | 100.0 | % | | $ | 1,400,233 | | 100.0 | % | $ | 1,256,323 | | 100.0 | % | |
The Company’s single segment net sales, net income, and significant expenses are as follows for the thirteen and twenty-six weeks ended August 1, 2026 and August 2, 2025: | | | | | | | | | | | | | | | | Thirteen weeks ended | | Twenty-six weeks ended | | | | August 1, | | August 2, | | August 1, | | August 2, | | | | 2026 | | 2025 | | 2026 | | 2025 | | Net sales | | $ | 741,305 | | $ | 679,556 | | $ | 1,400,233 | | $ | 1,256,323 | |
Cost of sales | | | 419,140 | | | 408,218 | | | 802,104 | | | 747,954 | | Selling, general, and administrative expenses other | | | 132,070 | | | 119,664 | | | 260,154 | | | 232,186 | | Occupancy | | | 39,472 | | | 35,032 | | | 77,821 | | | 68,461 | | Advertising expenses(1) | | | 21,943 | | | 17,420 | | | 40,791 | | | 33,137 | | Depreciation and amortization expenses(2) | | | 11,274 | | | 9,916 | | | 22,557 | | | 19,273 | | Stock-based compensation expense | | | 3,728 | | | 3,360 | | | 7,129 | | | 6,524 | | Pre-opening expenses | | | 5,203 | | | 8,972 | | | 11,645 | | | 15,628 | | Interest income, net | | | (6,142) | | | (4,534) | | | (11,108) | | | (9,322) | | Income tax expense | | | 29,163 | | | 20,198 | | | 47,286 | | | 33,612 | | Segment income | | | 85,454 | | | 61,310 | | | 141,854 | | | 108,870 | | | | | | | | | | | | | | | | Reconciliation of profit or loss: | | | | | | | | | | | | | | Adjustments and reconciling items | | | — | | | — | | | — | | | — | | Consolidated net income | | $ | 85,454 | | $ | 61,310 | | $ | 141,854 | | $ | 108,870 | |
| (1) | Expenses reported in operating expenses exclude advertising expenses recorded as pre-opening expenses. |
| (2) | Expenses reported in operating expenses exclude depreciation and amortization recorded in cost of sales. |
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