The expense components of the Company’s leases reflected on the Company’s condensed consolidated statement of operations were as follows:


	Consolidated Statement	Three Months Ended				Six Months Ended
	of Operations	August 2, 2026		August 3, 2025		August 2, 2026		August 3, 2025
(in thousands)
Finance lease expense
Amortization of right-of- use assets	Selling, general and administrative expenses	$	723	$	723	$	1,445	$	1,445
Interest on lease liabilities	Interest expense		332		362		671		730
Total finance lease expense		$	1,055	$	1,085	$	2,116	$	2,175
Operating lease expense	Selling, general and administrative expenses	$	4,816	$	4,908	$	9,687	$	9,806
Amortization of build-to- suit leases capital contribution	Selling, general and administrative expenses		321		321		642		642
Variable lease expense	Selling, general and administrative expenses		2,955		2,855		6,016		5,656
Total lease expense		$	9,147	$	9,169	$	18,461	$	18,279

Other information related to leases were as follows:


	Six Months Ended
	August 2, 2026			August 3, 2025
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows from finance leases	$	1,325		$	1,251
Operating cash flows from finance leases	$	671		$	730
Operating cash flows from operating leases	$	10,129		$	9,873

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	3,547		$	2,689

Weighted-average remaining lease term (in years):
Finance leases		8			9
Operating leases		5			6

Weighted-average discount rate:
Finance leases		4.5	%		4.5	%
Operating leases		4.7	%		4.4	%

Future minimum lease payments under the non-cancellable leases are as follows as of August 2, 2026:


Fiscal year	Finance			Operating
(in thousands)
2026 (remainder of fiscal year)	$	1,997		$	10,220
2027		3,993			19,932
2028		4,017			18,088
2029		4,217			15,450
2030		4,369			14,282
Thereafter		16,628			21,820
Total future minimum lease payments	$	35,221		$	99,792
Less – Discount		(5,925	)		(11,889	)
Lease liability	$	29,296		$	87,903

In the first quarter of 2026, the Company recorded an impairment charge of $2.7 million, which consisted of a right-of-use asset of $2.0 million and associated leasehold improvements of $0.7 million relating to the closure of the Salt Lake City fulfillment center as discussed in further detail in Note 13. The Company performed a recoverability test on the asset group. This test indicated that the carrying amount of the asset was not recoverable, as it exceeded the sum of the future undiscounted cash flows expected to result from the use and eventual disposition of the assets. Consequently, the Company proceeded to measure the impairment loss by comparing the asset group's carrying amount to its fair value. The fair value, which is considered to be a level 3 non-recurring fair value measurement, was determined using a discounted cash flow analysis (an income approach). The discounted cash flow analysis utilized level 3 fair value inputs including cash flow projections and discount rates. The resulting impairment charge of $2.7 million represents the amount by which the carrying value exceeded the calculated fair value. The impairment charge recorded is included in impairment of long-lived assets in the Company's condensed consolidated statement of operations for the six months ended August 2, 2026.