During fiscal 2023, the Company began implementation of its targeted cost reductions, which were expected to be fully realized in fiscal 2025. In late fiscal 2025, additional cost optimization initiatives were identified and are expected to be fully realized in fiscal 2027. Expense savings are being derived across various areas of the Company, including retail store efficiencies, marketing expenses, information technology contracts, professional services, logistics and operational costs, and corporate payroll.

The Company incurred the following charges during the thirteen weeks ended August 1, 2026 (in thousands):


	Reportable Segment
	Direct		Indirect		Unallocated Corporate Expenses		Total Expense
Severance charges	$	—	$	—	$	46	$	46

Total (1)	$	—	$	—	$	46	$	46


(1) Recorded within selling, general, and administrative ("SG&A") expenses

The Company incurred the following charges during the twenty-six weeks ended August 1, 2026 (in thousands):


	Reportable Segment
	Direct		Indirect		Unallocated Corporate Expenses		Total Expense
Severance charges	$	334	$	117	$	712	$	1,163

Total (1)	$	334	$	117	$	712	$	1,163


(1) Recorded within selling, general, and administrative ("SG&A") expenses

A summary of charges and related liabilities associated with the cost savings initiatives and severance charges are as follows (in thousands):


	Severance Charges Activity
Liability as of January 31, 2026	$	744
Fiscal 2027 charges	1,163
Cash payments	(1,866)

Liability as of August 1, 2026 (1)	$	41

(1) Remaining liability is recorded within accrued employment costs

The Company incurred the following charges during the thirteen weeks ended August 2, 2025 (in thousands):


	Reportable Segment
	Direct		Indirect		Unallocated Corporate Expenses		Total Expense
Severance charges	$	—	$	—	$	3,018	$	3,018

Total (1)	$	—	$	—	$	3,018	$	3,018

(1) Recorded within selling, general, and administrative ("SG&A") expenses

The Company incurred the following charges during the twenty-six weeks ended August 2, 2025 (in thousands):


	Reportable Segment
	Direct		Indirect		Unallocated Corporate Expenses		Total Expense
Severance charges	$	15	$	—	$	3,293	$	3,308

Total (1)	$	15	$	—	$	3,293	$	3,308

(1) Recorded within selling, general, and administrative ("SG&A") expenses

A summary of charges and related liabilities associated with the cost savings initiatives and severance charges are as follows (in thousands):


	Severance Charges Activity
Liability as of February 1, 2025	$	2,525
Fiscal 2026 charges	3,308
Cash payments	(3,803)

Liability as of August 2, 2025(1)	$	2,030

(1) Remaining liability is recorded within accrued employment costs