| Segment Reporting |
12. SEGMENT REPORTING As of August 2, 2026 and August 3, 2025, the Company had one reportable segment. The Company’s operating segment is based on how the Chief Operating Decision Maker (“CODM”) makes decisions about allocating resources and assessing performance. The Company's CODM is its Chief Executive Officer. The CODM has the ultimate decision-making authority for resource allocation and assessing the performance of the Company. Thereby, the CODM regularly reviews consolidated net income as the measure of segment profit or loss, as well as significant segment expenses included in the below table, to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. The CODM also uses these measures in monitoring plan versus actual results. The CODM does not review segment assets at a different level or category than those disclosed in the condensed consolidated balance sheets. The following table summarizes the Company’s gross margin and selling, general and administrative expenses.
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Three Months Ended |
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Six Months Ended |
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August 2, 2026 |
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August 3, 2025 |
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August 2, 2026 |
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August 3, 2025 |
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(13 weeks) |
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(13 weeks) |
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(26 weeks) |
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(26 weeks) |
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(in thousands) |
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Net sales |
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$ |
121,389 |
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$ |
131,716 |
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$ |
219,983 |
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$ |
234,420 |
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Cost of goods sold (1) |
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33,028 |
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59,697 |
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74,988 |
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109,046 |
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Gross margin |
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$ |
88,361 |
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$ |
72,019 |
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$ |
144,995 |
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$ |
125,374 |
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Less: |
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Outbound shipping expenses |
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$ |
6,517 |
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$ |
5,976 |
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$ |
11,819 |
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$ |
12,162 |
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Advertising expenses |
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13,270 |
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11,756 |
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22,696 |
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21,832 |
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Variable expenses |
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10,704 |
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11,900 |
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20,553 |
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22,786 |
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Overhead expenses |
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39,024 |
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39,135 |
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76,249 |
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77,145 |
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Total selling, general and administrative |
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69,515 |
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68,767 |
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131,317 |
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133,925 |
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Impairment of long-lived assets |
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— |
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— |
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2,709 |
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549 |
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Restructuring expense |
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— |
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850 |
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1,354 |
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850 |
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Operating income (loss) |
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18,846 |
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2,402 |
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9,615 |
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(9,950 |
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Interest expense |
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768 |
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1,469 |
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1,558 |
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2,950 |
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Other income (loss), net (1) |
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396 |
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(82 |
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489 |
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(243 |
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Income (loss) before income taxes |
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18,474 |
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851 |
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8,546 |
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(13,143 |
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Income tax expense (benefit) |
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61 |
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(442 |
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181 |
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828 |
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Net income (loss) |
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18,413 |
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1,293 |
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8,365 |
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(13,971 |
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Less: Net income attributable to noncontrolling interest |
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51 |
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32 |
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104 |
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61 |
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Net income (loss) attributable to controlling interest |
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$ |
18,362 |
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$ |
1,261 |
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$ |
8,261 |
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$ |
(14,032 |
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