The Company has operating leases for retail stores, corporate offices, distribution facilities, and certain equipment. The Company’s leases have remaining lease terms ranging from less than one year up to eleven years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the lease early. The Company records all occupancy costs in Cost of sales, except costs for administrative office buildings, which are recorded in Selling, general, and administrative expenses. As of the periods presented, the Company’s finance leases were not material to the Consolidated Balance Sheets, Consolidated Statements of Operations, or Consolidated Statements of Cash Flows.

The following components of operating lease expense were recognized in the Company’s Consolidated Statements of Operations:


	Thirteen Weeks Ended				Twenty-six Weeks Ended
	August 1, 2026		August 2, 2025		August 1, 2026		August 2, 2025
	(in thousands)
Fixed operating lease cost	$	22,884	$	21,343	$	42,704	$	42,542
Variable operating lease cost	4,796		4,322		11,152		10,081
Total operating lease cost	$	27,680	$	25,665	$	53,856	$	52,623

The following table presents key information related to the Company’s operating leases, including weighted-average remaining lease term and discount rate, cash paid for operating lease liabilities, and right-of-use (“ROU”) assets obtained in exchange for new operating lease liabilities:


	Twenty-six Weeks Ended
	August 1, 2026	August 2, 2025
Weighted-average remaining lease term (years)	5.0	4.4
Weighted average discount rate (%)	9.2%	8.6%
Cash paid for amounts included in the measurement of operating lease liabilities ($, in thousands)	30,316	35,714
ROU assets obtained in exchange for new operating lease liabilities ($, in thousands)	78,361	27,317

As of August 1, 2026, the maturities of operating lease liabilities were as follows:


	August 1, 2026
	(in thousands)
Remainder of 2026	$	45,867
2027	67,194
2028	54,366
2029	30,792
2030	22,985
Thereafter	65,162
Total operating lease payments	286,366
Less: imputed interest	(62,345)
Present value of operating lease liabilities	$	224,021