The weighted-average discount rate as of August 1, 2026, and August 2, 2025 was 5.3% and 5.1%, respectively. The discount rate is not readily determinable in the lease; therefore, the Company estimated the incremental borrowing rate, at the commencement date of each lease, which is the rate of interest it would have to borrow on a collateralized basis over a similar term with similar payments.

The following lease expense is recorded within cost of sales for the Asia sourcing office and certain equipment leases and within selling, general, and administrative expenses for all other leases, including retail store leases, in the Company's Condensed Consolidated Statement of Operations for the thirteen and twenty-six weeks ended August 1, 2026 and August 2, 2025 (in thousands):


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	August 1, 2026		August 2, 2025		August 1, 2026		August 2, 2025
Operating lease cost	$	5,997	$	6,218	$	11,843	$	12,576
Variable lease cost	1,012		1,012		2,114		2,096
Short-term lease cost	55		83		116		195
Less: Sublease income (1)	(102)		(103)		(204)		(208)
Total net lease cost	$	6,962	$	7,210	$	13,869	$	14,659
(1) Related to the sublease of a former Company location.

Supplemental operating cash flow information was as follows (in thousands):


	Twenty-Six Weeks Ended
	August 1, 2026		August 2, 2025
Cash paid for amounts included in the measurement of operating lease liabilities(1)	$	12,998	$	14,202
Right-of-use assets increase as a result of new and modified operating lease liabilities, net	$	11,596	$	2,106

(1) $2.3 million of lease liabilities were recorded within accounts payable on the Company's Consolidated Balance Sheets as of August 2, 2025, and were subsequently paid in the month following the end of the period.