ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

6 Months Ended

Aug. 01, 2026

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

NOTE 7—ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accounts payable and accrued expenses consisted of the following:


		AUGUST 1,			JANUARY 31,
		2026			2026

		(in thousands)
Accounts payable		$	211,433		$	197,740
Accrued compensation			65,207			54,933
Accrued sales, use and other indirect tax			40,871			35,254
Accrued occupancy			31,295			27,264
Accrued freight and duty			23,478			22,877
Accrued professional fees			6,705			7,811
Accrued legal contingencies⁽¹⁾			2,091			2,914
Other accrued expenses			42,374			37,943
Total accounts payable and accrued expenses		$	423,454		$	386,736

(1)	Refer to Note 14¾Commitments and Contingencies.

Other current liabilities consisted of the following:


		AUGUST 1,			JANUARY 31,
		2026			2026

		(in thousands)
Allowance for sales returns		$	25,703		$	24,821
Current portion of term loans			25,000			25,000
Finance lease liabilities			23,726			21,249
Unredeemed gift card and merchandise credit liability			16,611			18,138
Other current liabilities			3,215			5,878
Total other current liabilities		$	94,255		$	95,086

Supplier Finance Program

We facilitate a voluntary supply chain financing program (the “Financing Program”) with a third-party financial institution (the “Bank”) to provide participating suppliers with the opportunity to receive early payment on invoices, net of a discount charged to the supplier by the Bank. As of August 1, 2026 and January 31, 2026, we had $42 million and $31 million, respectively, of payment obligations outstanding under the Financing Program included in accounts payable and accrued expenses on the condensed consolidated balance sheets.

Contract Liabilities

We defer revenue associated with merchandise delivered via the home-delivery channel. We expect that substantially all of the deferred revenue and customer deposits as of August 1, 2026 will be recognized within the next six months as the performance obligations are satisfied. In addition, we defer revenue when cash payments are received in advance of performance for unsatisfied obligations related to our gift cards. During the three months ended August 1, 2026 and August 2, 2025, we recognized $4.6 million and $5.2 million, respectively, of revenue related to previous deferrals related to our gift cards. During the six months ended August 1, 2026 and August 2, 2025, we recognized $10 million and $12 million, respectively, of revenue related to previous deferrals related to our gift cards. We expect that approximately 70 percent of the remaining gift card liabilities will be recognized when the gift cards are redeemed by customers.

Reorganization

We implemented and completed a restructuring in the second quarter of fiscal 2025 that included workforce and expense reductions in order to improve and simplify our organizational structure, streamline certain aspects of our business operations and better position us for further growth. The workforce reduction associated with this initiative included the elimination of numerous leadership and other positions throughout the organization. During the three and six months ended August 2, 2025, we incurred total charges relating to the reorganization of $1.2 million, consisting primarily of severance costs and related taxes, all of which was paid during fiscal 2025.