The Company continues to identify opportunities for improvements in its workforce realignment, strategy and staffing, and its focus on performance management, to ensure it has the right skill sets and number of associates to execute its long-term vision. As such, from time to time the Company extends voluntary and involuntary severance and separation benefits to certain associates in order to facilitate its workforce realignment. During the thirteen weeks ended November 29, 2025, the Company reduced its headcount by eliminating various positions as part of its sales optimization efforts as the Company implements its refreshed go to market strategy. The Company expects this restructuring event to continue into its second fiscal quarter with additional severance and separation costs of approximately $1,500.

As part of the Company’s strategic realignment efforts to optimize its supply chain and distribution network and enhance operational efficiency, the Company engaged consultants beginning in fiscal year 2024 and ending in fiscal year 2025. As such, the Company incurred consulting-related costs in order to facilitate its network optimization and workforce realignment that qualify as exit and disposal costs under accounting principles generally accepted in the United States of America.

In addition, from time to time, the Company incurs certain expenses that are an integral component of, and directly contribute to, its restructuring activities, which do not qualify as exit and disposal costs under accounting principles generally accepted in the United States of America. These expenses include professional and consulting-related costs directly associated with the optimization of the Company’s operations and profitability improvement, which are also included in Restructuring and other costs in the unaudited Condensed Consolidated Statements of Income.


	Thirteen Weeks Ended
	November 29, 2025		November 30, 2024
Consulting-related costs	$	926	$	2,344
Associate severance and separation costs	3,892		—
Equity award acceleration costs associated with severance	52		—

Total Restructuring and other costs	$	4,870	$	2,344

Liabilities associated with Restructuring and other costs are included in Accrued expenses and other current liabilities in the unaudited Condensed Consolidated Balance Sheet as of November 29, 2025. The following table


	Consulting-related costs		Associate severance and separation costs		Total
Balance at August 30, 2025	$	295	$	3,397	$	3,692
Additions	926		3,892		4,818
Payments and other adjustments	(631)		(2,323)		(2,954)
Balance at November 29, 2025	$	590	$	4,966	$	5,556