v3.26.1
Commitments and Contingencies
3 Months Ended
Aug. 02, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

18. Commitments and Contingencies

Tariff Refunds

During fiscal 2025 and early fiscal 2026, the company incurred import duties pursuant to IEEPA. On February 20, 2026, the U.S. Supreme Court ruled that such tariffs were not authorized, and on March 4, 2026, the U.S. Court of International Trade (“CIT”) ordered U.S. Customs and Border Protection to refund certain tariffs collected under IEEPA.

As of May 3, 2026, the company identified certain potential refunds of previously paid tariffs in accordance with the ruling by the CIT. The company estimated the total potential recovery to be approximately $6.9 million, which remained subject to administrative review and final liquidation of the underlying customs entries by U.S. Customs and Border Protection. Accordingly, this potential recovery was considered a gain contingency in accordance with ASC Topic 450, and therefore the company did not recognize a receivable related to potential tariff refunds as of May 3, 2026.

During the first quarter of fiscal 2027, the company received the entire $6.9 million in cash proceeds (excluding interest), representing the final approval of these tariff refund claims. The $6.9 million was recorded within cost of sales in the first quarter of fiscal 2027 Consolidated Statement of Net Income.

Legal Matters

The company is from time-to-time involved in legal proceedings and claims which arise in the ordinary course of business. Management has determined that any such current matters, when ultimately concluded or settled, will not have a material adverse effect on the company's financial position, results of operations, or cash flows.

During the first quarter of fiscal 2027, the company received in insurance proceeds of $814,000 in connection with the resolution of a legal matter. The $814,000 was classified within other income in the consolidated statement of net income for the three-month period ended August 2, 2026.

Purchase Commitments - Capital Expenditures

As of August 2, 2026, we had open purchase commitments to acquire equipment for our bedding operations totaling $484,000.